[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4052 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4052

            To improve the National Flood Insurance Program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 1994

   Mr. Bacchus of Florida (for himself, Mr. Baker of Louisiana, Mr. 
McCollum, Mr. Lazio, Mr. Fazio, Mr. Johnston of Florida, Mr. Shaw, Mrs. 
Meek, Mr. Jefferson, Mr. Ravenel, Mrs. Fowler, Mr. Schumer, Mr. Flake, 
   Mr. Johnson of South Dakota, Mr. Lewis of Florida, Mr. Miller of 
Florida, Mr. Klink, Ms. Brown of Florida, Mr. Bilirakis, Mr. Mica, Mr. 
   Livingston, Mr. King, Mr. Stearns, Mr. Ackerman, Mr. Canady, Mr. 
Peterson of Florida, Mr. Levy, Mr. Coleman, Mr. Gallegly, Mr. Boehner, 
 Mr. Hastings, Mr. Hutto, Mr. Peterson of Minnesota, Mr. Manzullo, Mr. 
  Deutsch, Mrs. Thurman, Mr. Calvert, Mr. Goodling, Mr. Machtley, Mr. 
  Fields of Louisiana, Mr. Goss, Mr. Young of Alaska, Mr. Crapo, Mr. 
 Diaz-Balart, Ms. Ros-Lehtinen, Mr. Franks of New Jersey, Mr. Dooley, 
Mr. Cramer, Mr. Hayes, Mr. Quinn, Mr. McCrery, Mr. Spence, Mr. Young of 
  Florida, Ms. Molinari, Mr. Tauzin, Mr. Bateman, Mr. Pombo, and Mr. 
   Talent) introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
            To improve the National Flood Insurance Program.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National Flood 
Insurance Program Improvement Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Definition.
                          TITLE I--DEFINITIONS

Sec. 101. Flood Disaster Protection Act of 1973.
Sec. 102. National Flood Insurance Act of 1968.
            TITLE II--COMPLIANCE AND INCREASED PARTICIPATION

Sec. 201. Expanded flood insurance purchase requirements.
Sec. 202. Escrow of flood insurance payments.
Sec. 203. Notice requirements.
Sec. 204. Placement of flood insurance by regulated lending 
                            institution, Federal agency lender, or 
                            servicer.
Sec. 205. Standard flood hazard determination forms.
Sec. 206. Examinations regarding compliance by regulated lending 
                            institutions.
Sec. 207. Penalties and corrective actions for failure to require flood 
                            insurance, escrow, or notify.
Sec. 208. Federal Financial Institutions Examination Council.
Sec. 209. Conforming amendment.
 TITLE III--RATINGS AND INCENTIVES FOR COMMUNITY FLOODPLAIN MANAGEMENT 
                                PROGRAMS

Sec. 301. Community rating system and incentives for community 
                            floodplain management.
Sec. 302. Community erosion hazard management program.
Sec. 303. Funding.
            TITLE IV--MITIGATION OF FLOOD AND EROSION RISKS

Sec. 401. Mitigation assistance in Federal insurance administration.
Sec. 402. Authorization of national flood and erosion mitigation funds 
                            under section 1367.
Sec. 403. State and community mitigation assistance program.
Sec. 404. Repeal of program for purchase of certain insured properties.
Sec. 405. Termination of erosion threatened structures program.
           TITLE V--TASK FORCE, ADVISORY COUNCIL, AND STUDIES

Sec. 501. Flood Insurance Interagency Task Force.
Sec. 502. Technical Mapping Advisory Council.
Sec. 503. Economic impact study of erosion hazard areas.
Sec. 504. Justification for Government operation of the National Flood 
                            Insurance Program and determination of the 
                            feasibility and availability of private 
                            sector flood insurance coverage.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Maximum flood insurance coverage amounts.
Sec. 602. Additional coverage for compliance with land use and control 
                            measures.
Sec. 603. Flood insurance program arrangements with private insurance 
                            entities.
Sec. 604. Updating of flood insurance maps and identification of 
                            erosion hazard areas.
Sec. 605. Agricultural structures.
Sec. 606. Funding for increased administrative and operational 
                            responsibilities.
Sec. 607. Separate account for flood insurance fund.
Sec. 608. Nonwaiver of flood purchase requirement for recipients of 
                            Federal disaster assistance.
Sec. 609. Insurance waiting period.
Sec. 610. Implementation review by the Director.
Sec. 611. Regulations.

SEC. 2. DEFINITION.

    As used in this Act, the term ``Director'' means the Director of 
the Federal Emergency Management Agency.

                          TITLE I--DEFINITIONS

SEC. 101. FLOOD DISASTER PROTECTION ACT OF 1973.

    (a) In General.--Section 3(a) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4003(a)) is amended--
            (1) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) `Federal entity for lending regulation' means the 
        Board of Governors of the Federal Reserve System, the Federal 
        Deposit Insurance Corporation, the Comptroller of the Currency, 
        the Office of Thrift Supervision, the National Credit Union 
        Administration Board, and the Farm Credit Administration, and 
        with respect to a particular regulated lending institution 
        means the entity primarily responsible for the supervision of 
        the institution;'';
            (2) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) `regulated lending institution' means a bank, savings 
        association, credit union, farm credit bank, Federal land bank 
        association, or production credit association subject to the 
        supervision of a Federal entity for lending regulation;
            ``(8) `Federal agency lender' means the Federal Housing 
        Administration, the Farmers Home Administration, the Small 
        Business Administration, and the Veterans' Administration, when 
        such agency makes loans secured by improved real estate or a 
        manufactured home; and
            ``(9) `servicer' means a person who receives any scheduled 
        periodic payments from a borrower pursuant to the terms of any 
        loan secured by a lien on real property, and who makes the 
        payments of principal and interest and such other payments with 
        respect to the amounts received from the borrower as may be 
        required.''.
    (b) Conforming Amendments.--
            (1) Requirements to purchase flood insurance.--Section 
        102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
        4012a(b)) is amended by striking ``Each Federal instrumentality 
        responsible for the supervision, approval, regulation, or 
        insuring of banks, savings and loan associations, or similar 
        institutions shall by regulation direct such institutions'' and 
        inserting ``Each Federal entity for lending regulation shall by 
        regulation direct regulated lending institutions''.
            (2) Effect of nonparticipation in flood insurance 
        program.--Section 202(b) of the Flood Disaster Protection Act 
        of 1973 (42 U.S.C. 4106(b)) is amended by striking ``Federal 
        instrumentality described in such section shall by regulation 
        require the institutions'' and inserting ``Federal entity for 
        lending regulation (with respect to regulated lending 
        institutions)''.

SEC. 102. NATIONAL FLOOD INSURANCE ACT OF 1968.

    (a) In General.--Section 1370(a) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4121(a)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(7) the term `Federal entity for lending regulation' 
        means the Board of Governors of the Federal Reserve System, the 
        Federal Deposit Insurance Corporation, the Comptroller of the 
        Currency, the Office of Thrift Supervision, the National Credit 
        Union Administration Board, and the Farm Credit Administration, 
        and with respect to a particular regulated lending institution, 
        means the entity primarily responsible for the supervision of 
        the institution;
            ``(8) the term `regulated lending institution' means a 
        bank, savings association, credit union, farm credit bank, 
        Federal land bank association, or production credit association 
        subject to the supervision of a Federal entity for lending 
        regulation;
            ``(9) the term `Federal agency lender' means the Federal 
        Housing Administration, the Farmers Home Administration, the 
        Small Business Administration, and the Veterans' 
        Administration, when such agency makes loans secured by 
        improved real estate or a manufactured home;
            ``(10) the term `erosion control measures' means a 
        community's efforts to control erosion through nonstructural 
        and structural projects;
            ``(11) the term `repetitive loss structure' means an 
        insured property--
                    ``(A) that incurred flood-related damage on 2 
                occasions during a 10-year period ending on the date of 
                the event for which a second claim is made, in which 
                the cost of repair, on the average, equaled or exceeded 
                25 percent of the value of the structure at the time of 
                each flood event;
                    ``(B) that was continuously covered by a contract 
                for flood insurance under this title for not less than 
                the period beginning upon the 1st occasion of flood-
                related damage referred to in subparagraph (A) and 
                ending upon the 2nd occasion of such damage; and
                    ``(C) that would have a chargeable rate that is 
                less than the applicable estimated risk premium for 
                such area (or subdivision thereof) under section 
                1307(a)(1);
            ``(12) the term `cost of compliance with land use and 
        control measures' means--
                    ``(A) the cost of elevating a structure so that the 
                structure is in compliance with the minimum performance 
                standards adopted by the community pursuant to section 
                1315 of the National Flood Insurance Act of 1968; or
                    ``(B) the cost of relocation or demolition of the 
                structure, if--
                            ``(i) elevating a structure will not result 
                        in compliance; or
                            ``(ii) the insured consents; and
            ``(13) the term `servicer' means any person who receives 
        any scheduled periodic payments from a borrower pursuant to the 
        terms of any loan secured by a lien on real property, and who 
        makes the payments of principal and interest and such other 
        payments with respect to the amounts received from the borrower 
        as may be required.''.
    (b) Conforming Amendment.--Section 1322(d) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4029(d)) is amended by striking 
``federally supervised, approved, regulated or insured financial 
institution'' and inserting ``regulated lending institution''.

            TITLE II--COMPLIANCE AND INCREASED PARTICIPATION

SEC. 201. EXPANDED FLOOD INSURANCE PURCHASE REQUIREMENTS.

    (a) Federal Agencies.--Section 102(a) of the Flood Disasters 
Protection Act of 1973 (42 U.S.C. 4012a(a)), is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraphs:
    ``(2) The Federal National Mortgage Association, the Federal Home 
Loan Mortgage Corporation, and the Federal Agricultural Mortgage 
Corporation shall implement procedures reasonably designed to assure 
that all loans that are--
            ``(A) secured by improved real estate or a manufactured 
        home located in an area that has been identified at the time of 
        the origination of the loan by the Director as an area having 
        special flood hazards and in which flood insurance is available 
        under the National Flood Insurance Act of 1968; and
            ``(B) purchased by any such entity;
are covered for the term of the loan by flood insurance in the amount 
provided in subsection (b).
    ``(3) Each Federal agency lender shall implement procedures 
reasonably designed to assure that all property--
            ``(A) that secures loans that the Federal agency lender 
        makes, increases, extends, or renews; and
            ``(B) that is improved by real estate or a manufactured 
        home located in an area that has been identified at the time of 
        the origination of the loan by the Director as an area having 
        special flood hazards and in which flood insurance is available 
        under the National Flood Insurance Act of 1968;
is covered for the term of the loan by flood insurance in the amount 
provided in subsection (b).''.
    (b) Regulated Lending Institutions.--Section 102(b) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)), as amended by 
section 101(b)(1), is amended by inserting before ``shall by 
regulation'' the following: ``(after consultation and coordination with 
the Federal Financial Institutions Examination Council established 
under the Federal Financial Institutions Examination Council Act of 
1974)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to all transactions occurring after the expiration of the 1-year 
period beginning on the date of enactment of this Act.

SEC. 202. ESCROW OF FLOOD INSURANCE PAYMENTS.

    (a) In General.--Section 102 of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following 
new subsection:
    ``(d)(1) Each Federal entity for lending regulation, after 
consultation and coordination with the Federal Financial Institutions 
Examination Council, shall by regulation require that, if a regulated 
lending institution requires the escrowing of taxes, insurance 
premiums, fees, or any other charges for a loan secured by residential 
real estate or manufactured homes, all charges for flood insurance 
under this title for the property shall be paid by the borrower to the 
institution for the duration of the period during which the regulated 
lending institution maintains an escrow account. Upon receipt of a 
notice from the Director or the provider of the insurance that 
insurance premiums, fees, or other charges are due, the institution 
shall pay from the escrow account to the provider of the insurance the 
amount of insurance premiums, fees or other charges owed.
    ``(2) If a Federal agency lender requires the escrowing of taxes, 
insurance premiums, fees, or any other charges, then any charges for 
flood insurance under this title for the residential real estate or the 
manufactured home shall be paid by the borrower to the Federal agency 
lender for the duration of the period during which the Federal agency 
lender maintains an escrow account. Upon receipt of a notice from the 
Director or the provider of the insurance that insurance premiums, 
fees, or other charges are due, the Federal agency lender shall pay 
from the escrow account to the provider of the insurance the amount of 
insurance premiums, fees or other charges owed.
    ``(3) Escrow accounts used to collect flood insurance premiums, 
fees, or other charges under this subsection shall be subject to the 
provisions of section 10 of the Real Estate Settlement Procedures Act 
of 1974.''.
    (b) Applicability.--Section 102(d) of the Flood Disaster Protection 
Act of 1973, as added by subsection (a), shall apply with respect to 
any loan made, increased, extended, or renewed after the expiration of 
the 1-year period beginning on the date of enactment of this Act.

SEC. 203. NOTICE REQUIREMENTS.

    Section 1364 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104a) is amended to read as follows:

``SEC. 1364. NOTICE REQUIREMENTS.

    ``(a) Lending Institutions.--Each Federal entity for lending 
regulation, after consultation and coordination with the Federal 
Financial Institutions Examination Council, shall by regulation require 
that before a regulated lending institution makes, increases, extends, 
or renews a loan secured by improved real estate or a manufactured home 
located in an area that has been identified by the Director as an area 
having special flood hazards, the institution shall notify the borrower 
of the special flood hazards and of the need to purchase and maintain 
flood insurance.
    ``(b) Federal Agency Lenders.--Before a Federal agency lender 
makes, increases, extends, or renews a loan secured by improved real 
estate or a manufactured home located in an area that has been 
identified by the Director as an area having special flood hazards, the 
Federal agency lender shall notify the borrower of the special flood 
hazards and of the need to purchase and maintain flood insurance.
    ``(c) Participating Communities.--The Director shall by regulation 
require each participating community, upon receiving the semiannual 
list prepared by the Director of all changes, revisions, and amendments 
made to the flood insurance rate maps during the preceding 6 months, to 
determine whether any properties in their community have been affected, 
and to provide annual notice by mail, notice by publication, notice on 
tax assessments, or notice by other reasonable method, to regulated 
lending institutions that are known to lend in the community, and to 
the owners of all properties newly determined to be, or no longer to 
be, in an area having special flood hazards, of the flood insurance 
purchase requirements under section 102(b).
    ``(d) Contents of Notice.--Notification required by this section 
shall include a warning, in a form to be established by the Director, 
stating that the real estate or manufactured home securing the loan is 
located in an area having special flood hazards, a description of the 
flood insurance purchase requirements under section 102(b), a statement 
that flood insurance coverage may be purchased under the National Flood 
Insurance Program and may also be available from private insurers, and 
any other information that the Director considers necessary to carry 
out the purposes of the National Flood Insurance Program.''.

SEC. 204. PLACEMENT OF FLOOD INSURANCE BY REGULATED LENDING 
              INSTITUTION, FEDERAL AGENCY LENDER, OR SERVICER.

    (a) Required Actions by Lender.--Section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a), as amended by section 202(a), 
is amended by adding at the end the following new subsection:
    ``(e) Required Actions by Lender.--
            ``(1) Notification to borrower of lack of coverage.--If, at 
        the time of origination or at any other time during the term of 
        a loan secured by improved real estate or by a manufactured 
        home located in an area that has been identified by the 
        Director as an area having special flood hazards and in which 
        flood insurance is available under this title, a regulated 
        lending institution, Federal agency lender, or servicer 
        determines that the building or manufactured home and any 
        personal property securing the loan held or serviced by the 
        regulated lending institution, Federal agency lender, or 
        servicer is not covered by flood insurance, in an amount not 
        less than the amount required by subsection (b), the regulated 
        lending institution, Federal agency lender, or servicer shall 
        notify the borrower, in a form to be established by the 
        Director, that the borrower should obtain, at the borrower's 
        expense, an amount of flood insurance that is not less than the 
        amount required by subsection (b), for the term of the loan. 
        If, not later than 45 days after receiving such notification, 
        the borrower fails to purchase such flood insurance, the 
        regulated lending institution, Federal agency lender, or 
        servicer shall purchase the insurance on behalf of the borrower 
        and may charge the borrower for the cost of premiums and fees 
        incurred by the regulated lending institution, Federal agency 
        lender, or servicer in purchasing the insurance.
            ``(2) Review.--
                    ``(A) By the director.--A borrower may request, 
                based upon the submission of supporting technical data, 
                that the Director review a determination that the 
                improved real estate or manufactured home securing the 
                loan is located in an area having special flood 
                hazards. Not later than 45 days after the Director 
                receives the request, the Director shall review the 
                determination and provide the borrower with a letter 
                stating whether or not the property is in an area 
                having special flood hazards. The determination of the 
                Director shall be final. If the Director fails to 
                respond to a request within 45 days, the property shall 
                be deemed not to be located in an area having special 
                flood hazards.
                    ``(B) Insurance not required.--If a person is 
                provided by the borrower with a letter issued by the 
                Director pursuant to subparagraph (A) during the 
                preceding 1-year period, stating that the property is 
                not in an area having special flood hazards, such 
                person shall have no obligation under this title to 
                require the purchase of flood insurance on the 
                property.''.
    (b) Applicability.--
            (1) In general.--Except as provided in paragraph (2), 
        section 102(e) of the Flood Disaster Protection Act of 1973, as 
        added by subsection (a), shall apply to all loans outstanding 
        on or after the date of enactment of this Act.
            (2) Loans regulated by the farm credit administration.--
        Notwithstanding paragraph (1), with respect to loans held by 
        institutions regulated by the Farm Credit Administration, 
        section 102(e) of the Flood Disaster Protection Act of 1973, as 
        added by subsection (a), shall apply only to loans originating 
        on or after the date of enactment of this Act.

SEC. 205. STANDARD FLOOD HAZARD DETERMINATION FORMS.

    (a) In General.--Chapter III of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101 et seq.) is amended by adding at the end the 
following new section:

``SEC. 1365. STANDARD FLOOD HAZARD DETERMINATION FORMS.

    ``(a) Development.--The Director, in consultation with the Federal 
entities for lending regulation, and after notice and comment, shall 
develop a standard flood hazard determination form (hereafter in this 
section referred to as the `determination form') for use in connection 
with loans secured by improved real estate or a manufactured home 
located in an area having special flood hazards and in which flood 
insurance is available under this title. The determination form may be 
maintained in a printed, computerized, or electronic manner.
    ``(b) Design and Contents.--The determination form shall state 
whether the property is in an area having special flood hazards, the 
risk premium rate classification established for the special flood 
hazard area in which the property is located, the complete map and 
panel numbers for the property, and the date of the map used for the 
determination. If the complete map and panel numbers for the property 
are not available because the property is not located in a community 
that is participating in the National Flood Insurance Program or 
because no map exists for the relevant area, the determination form 
shall so state.
    ``(c) Required Use.--Each Federal entity for lending regulation 
shall by regulation require the use of the determination form by 
regulated lending institutions. Each Federal agency lender shall by 
regulation provide for the use of the determination form. The Federal 
National Mortgage Association, the Federal Home Loan Mortgage 
Corporation, and the Federal Agricultural Mortgage Corporation shall 
require use of the determination form by any person from whom they 
purchase loans.
    ``(d) Guarantees Regarding Information.--In recording information 
on a determination form, a person may rely on information provided by a 
third party to the extent that the third party guarantees the accuracy 
of the information.
    ``(e) Reliance on Previous Determination.--A person or institution 
increasing, extending, renewing, or purchasing a loan may rely on a 
previous determination as to whether property is in an area having 
special flood hazards, if the previous determination was made not more 
than 5 years before the date of the transaction, and the basis for the 
previous determination has been set forth on a determination form.''.
    (b) Applicability.--Section 1365 of the National Flood Insurance 
Act of 1968, as added by subsection (a), shall apply to all loans 
originated on or after the expiration of the 6-month period beginning 
on the date the standard flood hazard determination form is finalized 
by the Director.

SEC. 206. EXAMINATIONS REGARDING COMPLIANCE BY REGULATED LENDING 
              INSTITUTIONS.

    (a) Amendment to Federal Deposit Insurance Act.--Section 10 of the 
Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by adding at 
the end the following new subsection:
    ``(h) Flood Hazard Insurance Compliance by Insured Depository 
Institutions Required.--
            ``(1) Examinations.--The appropriate Federal banking agency 
        shall, during each scheduled on-site examination required by 
        this section, determine whether the insured depository 
        institution is complying with the requirements of the National 
        Flood Insurance Program.
            ``(2) Report.--Not later than 1 year after the date of 
        enactment of the National Flood Insurance Program Improvement 
        Act of 1994, and biannually thereafter for the next 4 years, 
        each appropriate Federal banking agency shall submit a report 
        to the Congress on compliance by insured depository 
        institutions with the requirements of the National Flood 
        Insurance Program. The report shall include a description of 
        the methods used to determine compliance, the number of 
        institutions examined during the reporting year, a listing and 
        total number of institutions found to be in noncompliance, 
        actions taken to correct incidents of noncompliance, and an 
        analysis of compliance, including a discussion of any trends, 
        patterns, and problems, and recommendations regarding 
        reasonable actions to improve the efficiency of the 
        examinations processes.''.
    (b) Amendment to the Federal Credit Union Act.--Section 204 of the 
Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the 
end the following new subsection:
    ``(e) Flood Hazard Insurance Compliance by Insured Credit Unions 
Required.--
            ``(1) Examination.--The Board shall, during each 
        examination conducted under this section, determine whether the 
        insured credit union is complying with the requirements of the 
        National Flood Insurance Program.
            ``(2) Report.--Not later than 1 year after the date of 
        enactment of the National Flood Insurance Program Improvement 
        Act of 1994, and biannually thereafter for the next 4 years, 
        the Board shall submit a report to the Congress on compliance 
        by insured credit unions with the requirements of the National 
        Flood Insurance Program. The report shall include a description 
        of the methods used to determine compliance, the number of 
        insured credit unions examined during the reporting year, a 
        listing and total number of insured credit unions found to be 
        in noncompliance, actions taken to correct incidents of 
        noncompliance, and an analysis of compliance, including a 
        discussion of any trends, patterns, and problems, and 
        recommendations regarding reasonable actions to improve the 
        efficiency of the examinations processes.''.

SEC. 207. PENALTIES AND CORRECTIVE ACTIONS FOR FAILURE TO REQUIRE FLOOD 
              INSURANCE, ESCROW, OR NOTIFY.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by sections 202 and 204, is amended by adding at the 
end the following new subsections:
    ``(f) Civil Penalties.--
            ``(1) In general.--A regulated lending institution that is 
        found to have a pattern or practice of violating this section 
        may be assessed a civil penalty by the appropriate Federal 
        entity for lending regulation of not more than $350 for each 
        such violation. A penalty under this subsection may be issued 
        only after notice and an opportunity for a hearing on the 
        record.
            ``(2) Total amount.--The total amount of penalties assessed 
        under this subsection against a single regulated lending 
        institution for any calendar year may not exceed $100,000.
            ``(3) Sales or transfers.--The subsequent sale or other 
        transfer of a loan by a regulated lending institution that has 
        committed a violation of this section shall not affect the 
        liability of the transferring institution with respect to any 
        penalty under this subsection. An institution shall not be 
        liable for a violation relating to a loan committed by another 
        institution that previously held the loan.
            ``(4) 3-year limit.--No penalty may be imposed under this 
        subsection after the expiration of the 3-year period beginning 
        on the date of the occurrence of the violation.
    ``(g) Additional Actions.--If a Federal entity for lending 
regulation determines--
            ``(1) that a regulated lending institution has demonstrated 
        a pattern and practice of noncompliance in violation of the 
        regulations issued pursuant to subsection (b) or subsection (d) 
        or the notice requirements under section 1364 of the National 
        Flood Insurance Act of 1968, and
            ``(2) that the regulated lending institution has not 
        demonstrated measurable improvement in compliance despite the 
        issuance of penalties under subsection (f),
the agency may require the regulated lending institution to take such 
remedial actions as are necessary to ensure that the regulated lending 
institution is in satisfactory compliance with the requirements of the 
National Flood Insurance Program.''.

SEC. 208. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

    Section 1006 of the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3305) is amended by adding at the end 
the following new subsection:
    ``(g) Flood Insurance.--The Council shall consult with and assist 
the Federal entities for lending regulation, as such term is defined in 
section 1370(a)(7) of the National Flood Insurance Act of 1968, in 
developing and coordinating uniform standards and requirements for use 
by regulated lending institutions under the National Flood Insurance 
Program.''.

SEC. 209. CONFORMING AMENDMENT.

    The section heading for section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a) is amended to read as follows:

``SEC. 102. FLOOD INSURANCE PURCHASE AND COMPLIANCE REQUIREMENTS AND 
              ESCROW ACCOUNTS.''.

 TITLE III--RATINGS AND INCENTIVES FOR COMMUNITY FLOODPLAIN MANAGEMENT 
                                PROGRAMS

SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES FOR COMMUNITY 
              FLOODPLAIN MANAGEMENT.

    (a) Requirement for Participation in Flood Insurance Program.--
Section 1315 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4022) is amended--
            (1) by striking ``after December 31, 1971'' and inserting 
        the following:
    ``(a) Requirement for Participation in Flood Insurance Program.--
After December 31, 1971''; and
            (2) by adding at the end the following new subsection:
    ``(b) Community Rating System and Incentives for Community 
Floodplain Management.--
            ``(1) Authority and goals.--The Director shall carry out a 
        community rating system program (hereafter in this subsection 
        referred to as the `program') which shall--
                    ``(A) evaluate the measures adopted by communities 
                voluntarily participating in the community rating 
                system;
                    ``(B) provide incentives for measures to reduce the 
                risk of flood damage that exceed the criteria set forth 
                in section 1361;
                    ``(C) encourage adoption of more effective measures 
                for floodplain and erosion management; and
                    ``(D) to promote the reduction of Federal flood 
                insurance losses.
            ``(2) Incentives.--The program shall provide incentives in 
        the form of credits on premium rates for flood insurance 
        coverage in communities that the Director determines have 
        adopted and enforced measures to reduce the risk of flood 
        damage that exceed the criteria set forth in section 1361. In 
        providing incentives under this paragraph, the Director may 
        provide for credits to flood insurance premium rates in 
        communities that the Director determines have--
                    ``(A) implemented measures to enhance floodplain 
                management; and
                    ``(B) adopted erosion control measures.
            ``(3) Credits.--The credits on premium rates for flood 
        insurance coverage shall be based on the estimated reduction in 
        flood damage risks resulting from the measures adopted by the 
        community under this program, minus any funds received for 
        mitigation assistance under section 1366. The Director may also 
        reduce such credits to recover the cost to the Federal 
        Government of expenditures for flood or disaster relief to 
        property owners who did not maintain flood insurance on 
        structures in areas having special flood hazards.''.
    (b) Reports.--Two years after the date of enactment of this Act and 
biannually thereafter, the Director shall submit a report to the 
Congress regarding the program under section 1315(a) of the National 
Flood Insurance Act of 1968. Each report shall include an analysis of 
the cost-effectiveness and other accomplishments and shortcomings of 
the program and any recommendations of the Director for legislation 
regarding the program.

SEC. 302. COMMUNITY EROSION HAZARD MANAGEMENT PROGRAM.

    Section 1315 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4022), as amended by section 301, is amended by adding at the end the 
following new subsection:
    ``(c) Community Erosion Hazard Management Program.--
            ``(1) Authority and goals.--The Director shall carry out a 
        community erosion hazard management program (hereafter in this 
        subsection referred to as the ``program'') which shall--
                    ``(A) assist communities having erosion hazards to 
                understand the nature and extent of the erosion hazards 
                and to develop a program to manage erosion hazards;
                    ``(B) provide incentives for communities to 
                voluntarily undertake measures to reduce the risk of 
                erosion-related flood damage; and
                    ``(C) promote the reduction of Federal flood 
                insurance losses related to erosion hazards.
            ``(2) Development of community erosion hazard management 
        plan.--In developing the program, the Director shall meet with 
        appropriate representatives of communities with erosion hazards 
        to discuss the nature and extent of the erosion hazards in the 
        community and the potential development and implementation of 
        an erosion hazard management plan, including--
                    ``(A) the areas identified as having erosion 
                hazards;
                    ``(B) the impact of the erosion hazards on 
                structures located in the erosion hazard areas in the 
                event of flooding;
                    ``(C) the amount of any cross-subsidy among flood 
                insurance policyholders in the community as a result of 
                the insured structures located in erosion hazard areas; 
                and
                    ``(D) alternative cost-effective measures available 
                to the community to manage the erosion hazards, 
                including--
                            ``(i) erosion control projects to reduce or 
                        eliminate the risk of erosion-related flood 
                        damage;
                            ``(ii) the establishment of building codes 
                        to protect structures from erosion-related 
                        flood damage;
                            ``(iii) appropriate land use measures to 
                        guide development away from erosion hazards;
                            ``(iv) the relocation of structures at risk 
                        of erosion-related flood damage; and
                            ``(v) the elimination of any cross-subsidy 
                        among flood insurance policyholders in the 
                        community resulting in the assessment of 
                        actuarial premium rates for new construction in 
                        erosion hazard areas.
            ``(3) Eligibility for assistance under the state and 
        community mitigation assistance program.--Communities 
        voluntarily participating in the program shall be eligible for 
        technical and financial assistance under section 1367 for the 
        development and implementation of a community erosion hazard 
        management plan approved by the Director that reduces the risk 
        of erosion-related flood damage.
            ``(4) Incentives.--The program shall provide incentives in 
        the form of credits on premium rates for insurance coverage in 
        communities that the Director determines have adopted and 
        enforced measures to reduce the risk of erosion-related flood 
        damage.
            ``(5) Credits.--The credits on premium rates for flood 
        insurance coverage under the program shall be based on the 
        estimated reduction in erosion-related flood damage risks 
        resulting from the measures adopted by the community under this 
        program minus any funds received for assistance under section 
        1367.''.

SEC. 303. FUNDING.

    Section 1310(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017(a)) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding after paragraph (5) the following new 
        paragraph:
            ``(6) for carrying out the programs established under 
        subsections (b) and (c) of section 1315.''.

            TITLE IV--MITIGATION OF FLOOD AND EROSION RISKS

SEC. 401. MITIGATION ASSISTANCE IN FEDERAL INSURANCE ADMINISTRATION.

    Section 1105(a) of the Housing and Urban Development Act of 1968 
(42 U.S.C. 4129) is amended--
            (1) by striking ``(a) There is hereby'' and inserting the 
        following:
    ``(a) Establishment.--There is hereby''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Coordination of Mitigation Activities.--The Director shall 
coordinate all mitigation activities, including the administration of 
the program for mitigation assistance under section 1367, under the 
Federal Insurance Administrator. These activities shall include the 
development and implementation of various mitigation activities and 
techniques, the provision of advice and assistance regarding mitigation 
to States, communities, and individuals, including planning assistance 
under section 1367(d), coordination with other Federal flood and 
erosion mitigation efforts, and coordination with State and local 
governments and public and private agencies and organizations for 
collection and dissemination of information regarding erosion.''.

SEC. 402. AUTHORIZATION OF NATIONAL FLOOD AND EROSION MITIGATION FUNDS 
              UNDER SECTION 1367.

    (a) Expenditures.--Chapter III of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101 et seq.), as amended by section 205, is amended 
by adding at the end the following new section:

``SEC. 1366. NATIONAL FLOOD AND EROSION MITIGATION PROGRAM.

    ``For flood and erosion mitigation activities authorized under 
section 1367, the Director may expend from the National Flood Insurance 
Fund--
            ``(1) up to $10,000,000 in the fiscal year ending September 
        30, 1994;
            ``(2) up to $15,000,000 in the fiscal year ending September 
        30, 1995;
            ``(3) up to $20,000,000 in the fiscal year ending September 
        30, 1996;
            ``(4) up to $20,000,000 in each fiscal year thereafter; and
            ``(5) any amounts recaptured under section 1367(i).''.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act and biannually thereafter, the Director shall submit a report 
to the Congress describing the status of flood and erosion mitigation 
activities carried out with funds authorized under section 1366 of the 
National Flood Insurance Act of 1968, as added by subsection (a).

SEC. 403. STATE AND COMMUNITY MITIGATION ASSISTANCE PROGRAM.

    (a) In General.--Chapter III of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101 et seq.), as amended by sections 205 and 402, is 
amended by adding at the end the following new section:

``SEC. 1367. MITIGATION ASSISTANCE FOR STATES, COMMUNITIES, AND 
              INDIVIDUALS.

    ``(a) Authority.--The Director shall develop and implement a 
financial assistance program with amounts made available under section 
1366 to States, communities, and individuals for planning and 
activities designed to reduce the risk of flood and erosion damage to 
insured structures.
    ``(b) Requirement for Mitigation Plan or Application.--
            ``(1) States and communities.--To be eligible to receive 
        financial mitigation assistance, a State or community shall 
        develop, and have approved by the Director, a flood and erosion 
        risk mitigation plan (hereafter in this section referred to as 
        a `mitigation plan'), that is more protective against flood 
        losses than the criteria established by the Director under 
        section 1361. The mitigation plan shall include a comprehensive 
        strategy for mitigation activities adopted by the State or 
        community following a public hearing.
            ``(2) Individuals.--For an individual to be eligible to 
        receive financial mitigation assistance for a property--
                    ``(A) the property shall have been continuously 
                covered by a contract for flood insurance under this 
                title for the preceding 24 months; and
                    ``(B) the individual shall submit, and have 
                approved by the Director, an application for such 
                assistance, as the Director shall require.
    ``(c) Notification of Approval.--Not later than 120 days after the 
submission of a mitigation plan or application, the Director shall 
notify the State, community, or individual submitting the plan or 
application of the Director's approval or disapproval of the plan or 
application. If the Director does not approve a plan or application, 
the Director shall notify the State, community, or individual in 
writing of the reasons for such disapproval.
    ``(d) Planning Assistance.--
            ``(1) In general.--The Director shall make planning 
        assistance available to States and communities for developing 
        mitigation plans.
            ``(2) Funding.--From any amounts made available for use 
        under section 1366 of the National Flood Insurance Act of 1968 
        in any fiscal year, the Director may use not more than 
        $1,500,000 to provide planning assistance grants to States or 
        communities to develop mitigation plans under this subsection.
            ``(3) Limitations.--
                    ``(A) Timing.--A grant for planning assistance may 
                be awarded to a State or community once every 5 years 
                and each grant may cover a period of 1 to 3 years.
                    ``(B) Amount.--A grant for planning assistance may 
                not exceed--
                            ``(i) $150,000, to any State; or
                            ``(ii) $50,000, to any community.
                    ``(C) Geographic.--Not more than $300,000 may be 
                awarded to any 1 State and all communities located in 
                that State for planning assistance in each fiscal year.
    ``(e) Eligible Mitigation Activities.--The Director shall determine 
eligibility for assistance under this section for mitigation activities 
that shall be technically feasible and cost-effective. These activities 
may include--
            ``(1) elevation, relocation, demolition, or floodproofing 
        of structures;
            ``(2) the construction, repair, or restoration of levees, 
        seawalls, and other structures that reduce the risk of flood 
        damage;
            ``(3) erosion control measures including beach nourishment;
            ``(4) acquisition by States and communities of property 
        substantially damaged by flood for public use as the Director 
        determines is consistent with sound land management and use in 
        such area; and
            ``(5) provision of technical assistance by States to 
        communities and individuals to conduct eligible mitigation 
        activities.
The Director may provide assistance under this section to an individual 
for mitigation activities under this subsection only if the activities 
proposed in the application are consistent with any applicable land use 
and control measures adopted by the appropriate public body under 
section 1315 and any applicable mitigation plan.
    ``(f) Limitations on Mitigation Assistance.--
            ``(1) Amount.--The amount of mitigation assistance provided 
        under subsection (e) may not exceed in any 5-year period--
                    ``(A) $10,000,000, to any State; or
                    ``(B) $3,300,000, to any community.
            ``(2) Geographic.--Not more than $20,000,000 may be awarded 
        to any 1 State and all communities located in that State for 
        mitigation assistance in any 5-year period.
            ``(3) Treatment of assistance for individuals.--The amount 
        of mitigation assistance provided under subsection (e) to any 
        individual shall be included, for purposes of the dollar amount 
        limitations under paragraphs (1) and (2) of this subsection, in 
        the amount of assistance provided to the State and community 
        within which is located the property for which the grant is 
        made.
    ``(g) Matching Requirement.--The Director may provide mitigation 
assistance to a State or community in an amount not to exceed 3 times 
the amount that the State or community certifies, as the Director shall 
require, that the State or community will contribute from other funds 
to carry out mitigation planning under subsection (d) and eligible 
activities under subsection (e).
    ``(h) Oversight of Mitigation Plans and Applications.--The Director 
shall conduct oversight of recipients of mitigation assistance to 
ensure that the mitigation assistance is used in compliance with 
approved plans and applications.
    ``(i) Recapture.--If the Director determines that a State, 
community, or individual that has received mitigation assistance has 
not carried out the mitigation activities as set forth in the 
mitigation plan or application, the Director shall recapture any 
unexpended amounts and deposit the amounts in the Fund.
    ``(j) Definition of Community.--For purposes of this section, the 
term `community' means a political subdivision that has zoning and 
building code jurisdiction over a particular area having special flood 
hazards, and that is participating in the National Flood Insurance 
Program.
    ``(k) Preferences for Mitigation Grants to Communities.--
            ``(1) Cost-beneficialness.--In providing mitigation grants 
        to communities under this section, the Director shall give 
        preference to communities and individuals with mitigation plans 
        that are the most cost-beneficial to the National Flood 
        Insurance Program.
            ``(2) Additional optional criteria.--Subject to paragraph 
        (1), in providing mitigation grants to communities under this 
        section, the Director may give preference to communities that--
                    ``(A) have the highest rates of participation by 
                property owners in the National Flood Insurance 
                Program;
                    ``(B) have qualified for credits on premium rates 
                under section 1315(b); and
                    ``(C) have experienced repetitive losses that have 
                been most costly to the Fund.''.
    (b) Regulations.--Not later than 6 months after date of enactment 
of this Act, the Director shall issue regulations implementing section 
1367 of the National Flood Insurance Act of 1968, as added by 
subsection (a).

SEC. 404. REPEAL OF PROGRAM FOR PURCHASE OF CERTAIN INSURED PROPERTIES.

    (a) Repeal.--Section 1362 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4103) is repealed.
    (b) Transition.--Notwithstanding the repeal under subsection (a), 
the Director may continue to purchase property under subsections (a) 
and (b) of section 1362 of the National Flood Insurance Act of 1968, as 
such section existed immediately before the date of enactment of this 
Act, for a period of 1 year beginning on the date of enactment of this 
Act.

SEC. 405. TERMINATION OF EROSION THREATENED STRUCTURES PROGRAM.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended by striking subsection (c).
    (b) Transition.--The Director may pay amounts under flood insurance 
contracts for demolition or relocation of structures as provided in 
section 1306(c) of the National Flood Insurance Act of 1968 (as in 
effect immediately before the date of enactment of this Act) only 
during the 1-year period beginning on the date of enactment of this 
Act.

           TITLE V--TASK FORCE, ADVISORY COUNCIL, AND STUDIES

SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.

    (a) Establishment.--There is established an interagency task force 
to be known as the Flood Insurance Task Force (hereafter in this title 
referred to as the ``Task Force'').
    (b) Membership.--
            (1) In general.--The Task Force shall consist of 13 
        members, who shall be the designees of--
                    (A) the Director;
                    (B) the Federal Housing Commissioner;
                    (C) the Secretary of Veterans Affairs;
                    (D) the Administrator of the Farmers Home 
                Administration;
                    (E) the Administrator of the Small Business 
                Administration;
                    (F) each member of the Federal Financial 
                Institutions Examination Council;
                    (G) the chairman of the Board of Directors of the 
                Federal Home Loan Mortgage Corporation;
                    (H) the chairman of the Board of Directors of the 
                Federal National Mortgage Association; and
                    (I) the chairman of the Federal Agricultural 
                Mortgage Corporation.
            (2) Qualifications.--Members of the Task Force shall be 
        designated for membership on the Task Force by reason of 
        demonstrated knowledge and competence regarding the National 
        Flood Insurance Program.
    (c) Duties.--The Task Force shall--
            (1) make recommendations to the head of each Federal agency 
        and corporation referred to under subsection (b)(1) regarding 
        the establishment or adoption of standardized enforcement 
        procedures among such agencies and corporations responsible for 
        enforcing compliance with the requirements under the National 
        Flood Insurance Program to ensure the fullest possible 
        compliance with such requirements;
            (2) study the extent to which Federal agencies and the 
        secondary mortgage market can provide assistance in ensuring 
        compliance with the requirements under the National Flood 
        Insurance Program;
            (3) study the extent to which existing programs of Federal 
        agencies and corporations for compliance with the requirements 
        under the National Flood Insurance Program can serve as a model 
        for other Federal agencies responsible for enforcing 
        compliance, and submit to the Congress a report describing the 
        study and any conclusions;
            (4) study--
                    (A) the extent to which the flood insurance premium 
                rate structure could be revised, consistent with the 
                goal of providing affordable flood insurance, to 
                minimize existing premium rate subsidies, and account 
                for catastrophic loss events; and
                    (B) how changes in the premium rate structure could 
                potentially impact other Federal disaster assistance 
                programs;
            (5) propose strategies, consistent with the goal of 
        providing affordable flood insurance, to establish an 
        actuarial-based premium structure to account for all insurable 
        flood-related risks identified under the National Flood 
        Insurance Act of 1968, as amended by this Act; and
            (6) develop guidelines regarding enforcement and compliance 
        procedures, based on the studies and findings of the Task Force 
        and publishing the guidelines in a usable format.
    (d) Reports.--Not later than 2 years after the date of enactment of 
this Act, the Task Force shall transmit to the Congress a report 
describing its studies and any conclusions.
    (e) Compensation.--Members of the Task Force shall receive no 
additional compensation by reason of their service on the Task Force.
    (f) Chairperson.--The members of the Task Force shall elect 1 
member to serve as the chairperson of the Task Force (hereafter in this 
section referred to as the ``Chairperson'').
    (g) Meetings and Action.--The Task Force shall meet at the call of 
the Chairperson or a majority of the members of the Task Force and may 
take action by a vote of the majority of the members. The Federal 
Insurance Administrator shall coordinate and call the initial meeting 
of the Task Force.
    (h) Officers.--The Chairperson may appoint officers to carry out 
the duties of the Task Force under subsection (c).
    (i) Staff of Federal Agencies.--Upon the request of the 
Chairperson, the head of any of the Federal agencies and corporations 
referred to in subsection (b)(1) may detail, on a nonreimbursable 
basis, any of the personnel of the agency to the Task Force to assist 
the Task Force in carrying out its duties under this Act.
    (j) Powers.--In carrying out this section, the Task Force may hold 
hearings, sit and act at times and places, take testimony, receive 
evidence and assistance, provide information, and conduct research as 
the Task Force considers appropriate.
    (k) Termination.--The Task Force shall terminate 2 years after the 
date on which all members of the Task Force have been designated under 
subsection (b)(1).

SEC. 502. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (hereafter in this section 
referred to as the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of the Director, 
        or the Director's designee, and 12 additional members to be 
        appointed by the Director or his designee, and shall include--
                    (A) the Under Secretary of Commerce for Oceans and 
                Atmosphere (or his or her designee);
                    (B) a member of recognized surveying and mapping 
                professional associations and organizations;
                    (C) a member of recognized professional engineering 
                associations and organizations;
                    (D) a member of recognized professional 
                associations or organizations representing flood hazard 
                determination firms;
                    (E) a representative of the United States Geologic 
                Survey;
                    (F) a representative of State geologic survey 
                programs;
                    (G) a representative of State national flood 
                insurance coordination offices;
                    (H) a representative of the Federal National 
                Mortgage Association and the Federal Home Loan Mortgage 
                Corporation; and
                    (I) a representative of a regulated lending 
                institution.
            (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.
    (c) Duties.--The Council shall--
            (1) make recommendations to the Director on how to improve 
        in a cost-effective manner the accuracy, general quality, ease 
        of use, and distribution and dissemination of flood insurance 
        rate maps;
            (2) recommend to the Director mapping standards and 
        guidelines for flood insurance rate maps; and
            (3) transmit an annual report to the Director describing--
                    (A) the activities of the Council;
                    (B) an evaluation of the status and performance of 
                flood insurance rate maps and mapping activities to 
                update and revise flood insurance rate maps as 
                established by the amendments made under section 604; 
                and
                    (C) a summary of recommendations made by the 
                Council to the Director.
    (d) Chairperson.--The members of the Council shall elect 1 member 
to serve as the chairperson of the Council (hereafter in this section 
referred to as the ``Chairperson'').
    (e) Coordination.--To ensure that the Council's recommendations are 
consistent to the maximum extent practicable with national digital 
spatial data collection and management standards, the Chairperson shall 
consult with the Chairperson of the Federal Geographic Data Committee 
(established pursuant to OMB Circular A-16).
    (f) Compensation.--Members of the Council shall receive no 
additional compensation by reason of their service on the Council.
    (g) Meetings and Actions.--
            (1) In general.--The Council shall meet not less 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.
            (2) Initial meeting.--The Director, or a person designated 
        by the Director, shall request and coordinate the initial 
        meeting of the Council.
    (h) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    (i) Staff of the Federal Emergency Management Agency.--Upon the 
request of the Chairperson, the Director may detail, on a 
nonreimbursable basis, personnel of the Federal Emergency Management 
Agency to assist the Council in carrying out its duties.
    (j) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research as it considers appropriate.
    (k) Termination.--The Council shall terminate 5 years after the 
date on which all members of the Council have been appointed under 
subsection (b)(1).

SEC. 503. ECONOMIC IMPACT STUDY OF EROSION HAZARD AREAS.

    (a) Report to Congress.--Not later than 3 years after the date of 
enactment of this Act, the Director shall submit to the Congress a 
report assessing the economic impact of the denial of flood insurance 
and the establishment of actuarial rates on communities that are likely 
to be identified as having erosion hazard areas. The report shall 
include--
            (1) a listing of all communities that are likely to be 
        identified having an erosion hazard area;
            (2) an independent assessment, after consultation with such 
        communities, of the economic impact of the denial of flood 
        insurance for new construction and the assessment of actuarial 
        rates in the erosion hazard areas, including the impact on--
                    (A) the value of residential and commercial 
                properties in the erosion hazard area;
                    (B) community tax revenues due to changes in 
                property values or commercial activity;
                    (C) employment, including the potential loss of 
                existing and new jobs in the community;
                    (D) existing businesses and future economic 
                development; and
                    (E) the estimated cost of Federal and State 
                disaster assistance to flood victims that would have 
                otherwise been insured by available and affordable 
                flood insurance;
            (3) an estimate of the cross-subsidy of insurance premiums 
        in such communities, and the impact of eliminating the cross-
        subsidy on those communities and the financial condition of the 
        National Flood Insurance Fund;
            (4) the estimated savings to the National Flood Insurance 
        Program likely to result from expending $25,000,000 from the 
        National Flood Insurance Fund to map erosion hazard areas; and
            (5) an assessment of the need for the development of a 
        Community Erosion Hazard Management Program and, if needed, 
        recommendations consistent with the goal of providing 
        affordable flood insurance protection under the National Flood 
        Insurance Program, which would minimize the economic impact on 
        communities assessed under paragraph (2).
    (b) Definition of Erosion Hazard Area.--For the purposes of this 
section, the term ``erosion hazard area'' means, based on erosion rate 
information and other historical data available, an area where erosion 
or avulsion is likely to result in damage to or loss of buildings and 
infrastructure during a 60-year period.
    (c) Authorization of Appropriation.--There are authorized to be 
appropriated to the Director $1,000,000 to carry out this section.

SEC. 504. JUSTIFICATION FOR GOVERNMENT OPERATION OF THE NATIONAL FLOOD 
              INSURANCE PROGRAM AND DETERMINATION OF THE FEASIBILITY 
              AND AVAILABILITY OF PRIVATE SECTOR FLOOD INSURANCE 
              COVERAGE.

    (a) Report to Congress.--Not later than 3 years after the date of 
enactment of this Act, the Director shall submit to the Congress a 
report containing--
            (1) a determination of whether or not it would be feasible 
        for the National Flood Insurance Program, as established under 
        the National Flood Insurance Act of 1968, to be administered by 
        the private insurance industry in accordance with part A of 
        chapter II of such Act and recommendations for modifications to 
        the program to facilitate administration by the private 
        insurance industry;
            (2) if applicable, the reasons and justification, in 
        accordance with section 1340 of the National Flood Insurance 
        Act of 1968, for a determination that the operation of the 
        National Flood Insurance Program cannot be carried out without 
        the Federal Government's assumption of the operational 
        responsibility for flood insurance under the National Flood 
        Insurance Act of 1968;
            (3) the estimated impact on the availability and 
        affordability of flood insurance if the National Flood 
        Insurance Program were to be administered by the private 
        insurance industry;
            (4) the estimated impact on the cost and efficiency of 
        other Federal emergency management programs, including Federal 
        disaster assistance, if the National Flood Insurance Program 
        were to be administered by the private insurance industry;
            (5) the effect of the Federal Government's assumption of 
        the operational responsibility for flood insurance on the 
        availability and affordability of private flood insurance 
        coverage; and
            (6) the availability and cost of private flood insurance in 
        each of the communities participating in the National Flood 
        Insurance Program, including a directory of private sector 
        insurance providers.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. MAXIMUM FLOOD INSURANCE COVERAGE AMOUNTS.

    (a) In General.--Section 1306(b) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``and'' at the end of clause (i); 
                and
                    (B) by striking clause (iii);
            (2) by striking subparagraph (B) of paragraph (1) and 
        inserting the following new subparagraph:
                    ``(B) in the case of any nonresidential property, 
                including churches--
                            ``(i) $100,000 aggregate liability for each 
                        structure; and
                            ``(ii) $100,000 aggregate liability for any 
                        contents related to each structure;'';
            (3) by striking subparagraph (C) of paragraph (1);
            (4) in paragraph (2), by striking ``so as to enable'' and 
        all that follows through the end of the paragraph and inserting 
        ``up to an amount, including the limits specified in clause (i) 
        of paragraph (1)(A), of $250,000 multiplied by the number of 
        dwelling units in the building;'';
            (5) in paragraph (3), by striking ``so as to enable'' and 
        all that follows through the end of the paragraph and inserting 
        ``up to an amount, including the limits specified in clause 
        (ii) of paragraph (1)(A), of $100,000 for any single-family 
        dwelling and $250,000 for any residential structure containing 
        more than one dwelling unit;''; and
            (6) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) in the case of any nonresidential property, including 
        churches, additional flood insurance in excess of the limits 
        specified in clauses (i) and (ii) of paragraph (1)(B) shall be 
        made available to every insured upon renewal and every 
        applicant for insurance up to an amount, including the limits 
        specified in paragraph (1)(B), of $2,400,000 for each structure 
        and $2,400,000 for any contents related to each structure; 
        and''.
    (b) Actuarial Risk Premiums on Repetitive Loss Structures.--Section 
1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 
is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraph:
            ``(7) upon determining that a property is a repetitive loss 
        structure, and after making a payment to the insured under 
        section 1304(e), the Director shall charge the applicable risk 
        premium rate for flood insurance based on consideration of the 
        risk involved and accepted actuarial principles under section 
        1307(a)(1), except that the Director may not increase the 
        premium rate above the level authorized in paragraph (7); 
        and''.
    (c) Annual 10-Percent Premium Rate Increase Cap.--Section 1306(b) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is 
amended by adding at the end the following:
            ``(8) the Director may not increase the premium rate 
        applied to a structure in any 12-month period by more than 10 
        percent over the rate previously applied to that structure 
        during the preceding 12-month period.''.
    (d) Conforming Amendments.--Section 1306(b)(5) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)(5)) is amended--
            (1) by striking ``(A), (B), or (C)'' and inserting ``(A) or 
        (B)''; and
            (2) by striking ``(1)(C),''.

SEC. 602. ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE AND CONTROL 
              MEASURES.

    (a) In General.--Section 1304(e) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4011(a)) is amended by inserting before the 
period ``, including the cost of compliance with land use and control 
measures for properties that are repetitive loss structures or that 
have flood damage in which the cost of repairs equals or exceeds 50 
percent of the value of the structure at the time of the flood event. 
The Director shall impose a uniform surcharge on each insured of not 
more than $30 per policy to provide cost of compliance coverage under 
this section''.
    (b) Applicability.--The provisions of subsection (a) shall apply 
only to structures that sustain flood-related damage after the date of 
enactment of this Act.
    (c) Report.--Not later than 5 years after the date of enactment of 
this Act, the Director shall submit a report to the Congress describing 
the activities undertaken to provide insurance coverage for the cost of 
compliance with land use and control measures under subsection (a). 
Such report shall evaluate the costs and savings to the National Flood 
Insurance Program resulting from providing this additional coverage.

SEC. 603. FLOOD INSURANCE PROGRAM ARRANGEMENTS WITH PRIVATE INSURANCE 
              ENTITIES.

    Section 1345(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081(b)) is amended by striking the period at the end and 
inserting the following: ``and without regard to the provisions of the 
Federal Advisory Committee Act.''.

SEC. 604. UPDATING OF FLOOD INSURANCE MAPS AND IDENTIFICATION OF 
              EROSION HAZARD AREAS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsections:
    ``(e) Assessment of Need To Update Areas.--(1) Once during each 5-
year period (the 1st such period beginning on the date of enactment of 
the National Flood Insurance Program Improvement Act of 1994), or more 
often as the Director determines necessary, the Director shall assess 
the need to revise and update the flood insurance rate map.
    ``(2) Upon the request of a State or community stating that a flood 
insurance rate map needs revision or updating, the Director shall 
review and update the flood insurance rate map for the State or 
community. The Director may require the State or community to pay a 
portion of the cost of updating the map.
    ``(f) Availability.--To promote compliance with the requirements of 
this title, the Director shall make flood insurance rate maps and 
related information available free of charge to Federal agencies and to 
State agencies directly responsible for coordinating the National Flood 
Insurance Program and to appropriate representatives of communities 
participating in the National Flood Insurance Program, and at a 
reasonable cost to all other persons pursuant to section 1310.
    ``(g) Notification.--The Director shall publish in the Federal 
Register or by other comparable method, notices of changes to flood 
insurance map panels, and changes to flood insurance map panels issued 
in the form of Letters of Map Amendment and Letters of Map Revision. 
The map change or revision shall become effective upon publication. 
Such comparable methods shall include all pertinent information, 
provide for regular and frequent distribution, and be at least as 
accessible to map users as the Federal Register. Notices published in 
the Federal Register, or otherwise, shall also include information on 
how to obtain copies of the changes or revisions.
    ``(h) Availability.--On March 1 and October 1 of each year, the 
Director shall publish separately and make available in their entirety 
within a compendium, all changes and revisions to flood insurance map 
panels and all Letters of Map Amendment and Letters of Map Revision 
that were published in the Federal Register or distributed through 
other comparable methods during the preceding 6 months, free of charge, 
to Federal agencies, States, and communities participating in the 
National Flood Insurance Program pursuant to section 1310 and at cost 
to all other persons.''.

SEC. 605. AGRICULTURAL STRUCTURES.

    Section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) is amended by adding at the end the following new subsection:
    ``(d) Agricultural Structures.--
            ``(1) Exemption from floodway activity restrictions.--
        Notwithstanding any other provision of law, the adequate land 
        use and control measures adopted in an area (or subdivision 
        thereof) pursuant to section 1315(a) may provide, at the 
        discretion of the appropriate State or local authority, for the 
        repair and restoration to pre-damaged conditions of an 
        agricultural structure that--
                    ``(A) is a repetitive loss structure; or
                    ``(B) has incurred flood-related damage to the 
                extent that the cost of restoring the structure to its 
                pre-damaged condition would equal or exceed 50 percent 
                of the market value of the structure before the damage 
                occurred.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `agricultural structure' means any 
                structure used exclusively in connection with the 
                production, harvesting, storage, raising, or drying of 
                agricultural commodities; and
                    ``(B) the term `agricultural commodities' means 
                agricultural commodities and livestock.''.

SEC. 606. FUNDING FOR INCREASED ADMINISTRATIVE AND OPERATIONAL 
              RESPONSIBILITIES.

    (a) Availability of Fund.--Section 1310(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)), as amended by section 303, 
is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``(except as otherwise provided)'' after ``without fiscal year 
        limitation'';
            (2) in paragraph (6), as added by section 303 of this Act, 
        by striking the period at the end and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) for revising and updating flood insurance rate maps 
        under section 1360(i), except that the fund shall be available 
        for the purpose under this paragraph in an amount not to exceed 
        $2,000,000, in each fiscal year beginning after the expiration 
        of the 2-year period beginning on the date of enactment of the 
        National Flood Insurance Program Improvement Act of 1994.''.
    (b) Credits of Fund.--Section 1310(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(b)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) by redesignating paragraph (6) as paragraph (7); and
            (3) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) any penalties collected under section 102(f) of the 
        Flood Disaster Protection Act of 1973; and''.

SEC. 607. SEPARATE ACCOUNT FOR FLOOD INSURANCE FUND.

    Section 1310(a) of the National Flood Insurance Act (42 U.S.C. 
4017(a)) is amended by inserting before ``which shall be available'' 
the following: ``which shall be maintained in the Treasury as an 
account separate from any other funds available to the Director, and''.

SEC. 608. NONWAIVER OF FLOOD PURCHASE REQUIREMENT FOR RECIPIENTS OF 
              FEDERAL DISASTER ASSISTANCE.

    Section 311(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5154(b)) is amended by adding at 
the end the following: ``The requirements of this subsection may not be 
waived under section 301.''.

SEC. 609. INSURANCE WAITING PERIOD.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended by adding at the end the following new subsection:
    ``(e)(1) The Director shall establish a waiting period of not less 
than 10 days from the presentment of payment of a premium for the 
initial purchase of flood insurance under this title. Flood insurance 
coverage shall not be available with respect to any claim for damage 
incurred during such waiting period.
    ``(2) This subsection shall not apply to the initial purchase of 
flood insurance under this title when the purchase of insurance is in 
connection with the making, increasing, extension, or renewal of a 
loan.''.

SEC. 610. IMPLEMENTATION REVIEW BY THE DIRECTOR.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
            (1) by striking ``The Director'' and inserting the 
        following:
    ``(a) In General.--The Director''; and
            (2) by adding at the end the following new subsection:
    ``(b) Effects of Flood Insurance Program.--The Director shall 
include, as part of the biennial report submitted under subsection (a), 
a chapter reporting on the effects on the flood insurance program 
observed through implementation of requirements under the National 
Flood Insurance Program Improvement Act of 1994.''.

SEC. 611. REGULATIONS.

    The Director and the head of any appropriate Federal agency may 
each issue any regulations necessary to carry out the applicable 
provisions of this Act and the applicable amendments made by this Act.

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