[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1405 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1405

 To strengthen the National Flood Insurance Program and to reduce risk 
    to the national flood insurance fund by increasing compliance, 
providing incentives for community floodplain management, providing for 
             mitigation assistance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 6 (legislative day, June 30), 1993

   Mr. Kerry introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To strengthen the National Flood Insurance Program and to reduce risk 
    to the national flood insurance fund by increasing compliance, 
providing incentives for community floodplain management, providing for 
             mitigation assistance, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National Flood 
Insurance Reform Act of 1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Congressional findings.
Sec. 3. Declaration of purpose under the National Flood Insurance Act 
                            of 1968.
                          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 
                            or Federal agency lender.
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. 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. 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 1362.
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.
Sec. 406. Limitations on new flood insurance coverage in erosion hazard 
                            areas.
Sec. 407. Riverine erosion study.
Sec. 408. Coordination with coastal zone management programs.
                  TITLE V--FLOOD INSURANCE TASK FORCE

Sec. 501. Flood Insurance Interagency Task Force.
                   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. Technical Mapping Advisory Council.
Sec. 606. Funding for increased administrative and operational 
                            responsibilities.
Sec. 607. Regulations.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) unprecedented growth in population and development has 
        occurred along the coasts and rivers of the United States and a 
        significant portion of the United States population is exposed 
        to the hazards of flood, mudslide, and erosion damage;
            (2) the number of properties insured against floods 
        remained roughly constant during the 1980's, despite continuing 
        growth in real estate activity in coastal, lakeshore, and 
        riverine areas, and the level of flood insurance coverage that 
        an individual can purchase has not been increased since 1977;
            (3) due to substantial increases in construction costs, 
        many property owners are prevented from purchasing flood 
        insurance for the replacement value of the building, 
        potentially resulting in an owner not receiving a payment to 
        fully restore flood-damaged property;
            (4) since 1989, there has been a significant increase in 
        the incidence of major storms and hurricanes and severity of 
        related damages in the United States;
            (5) as a consequence of the increase in the incidence of 
        storms, the national flood insurance fund has been depleted, 
        creating the risk of borrowing from the Treasury, and 
        threatening to exacerbate the Federal budget deficit;
            (6) no comprehensive Federal program exists to assist in 
        the removal of structures from high risk areas, such as 
        regulatory floodways and coastal high hazard areas, before 
        disaster strikes;
            (7) no comprehensive Federal program exists to evaluate and 
        provide technical assistance and funds to communities for the 
        mitigation of damages to repetitively and severely damaged 
        structures or insured structures threatened by shoreline 
        erosion, and such a program would reduce the vulnerability of 
        the Federal Government to flood- and erosion-related losses;
            (8) a Federal flood insurance program that combines 
        predisaster mitigation efforts together with an insurance and 
        compliance program will reduce the physical and economic 
        effects of flood-related damage on the Federal Government, 
        State and local governments, and individuals;
            (9) requiring regulated lending institutions, government 
        agencies, and government-sponsored enterprises to make sure 
        that flood insurance coverage is purchased on all properties in 
        areas of special flood hazards in participating communities 
        will increase compliance with the program, and increase the 
        pool of funds, thereby decreasing the impact on the fund of 
        individual flood events;
            (10) the relative rise in sea level and the fluctuations in 
        water levels of the Great Lakes expose the National Flood 
        Insurance Program to greater risks, and such risks should be 
        adequately considered in order to determine a comprehensive 
        assessment of risk under the program;
            (11) erosion hazard areas have not been identified or 
        adequately considered for the purposes of insurance established 
        under the National Flood Insurance Act of 1968;
            (12) identification of erosion hazard areas and erosion 
        management can improve public safety, guide appropriate 
        development, and help reduce erosion losses to existing 
        structures and protect new structures from erosion losses, 
        thereby reducing Federal, State, local, and private 
        expenditures due to erosion;
            (13) a community-based approach to mitigation and erosion 
        management, to reduce losses in floodplains and to minimize 
        adverse impacts on natural and beneficial floodplain functions, 
        is the most comprehensive, effective, and cost-efficient method 
        to reduce losses in floodplains and disaster assistance 
        expenditures, and such benefits could be enhanced if combined 
        with insurance protection for insured property owners to meet 
        the increased reconstruction costs required by Federal, State, 
        or local mitigation standards;
            (14) incentives in the form of reduced premium rates for 
        flood insurance under the National Flood Insurance Program 
        should be provided in communities that have adopted and 
        enforced exemplary or particularly effective measures for 
        comprehensive floodplain and erosion hazard area management; 
        and
            (15) such community-based and individual mitigation and 
        loss prevention methods and incentives should be incorporated 
        into the National Flood Insurance Program.

SEC. 3. DECLARATION OF PURPOSE UNDER THE NATIONAL FLOOD INSURANCE ACT 
              OF 1968.

    Section 1302(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4001(e)) is amended--
            (1) by redesignating paragraphs (3), (4), and (5), as 
        paragraphs (4), (5), and (6), respectively; and
            (2) by inserting after the comma at the end of paragraph 
        (2) ``(3) encourage State and local governments and Federal 
        agencies to protect natural and beneficial floodplain functions 
        that reduce flood-related losses,''.

                          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, and the National Credit Union 
        Administration Board, and with respect to a particular 
        regulated lending institution means the entity primarily 
        responsible for the supervision, approval, insuring, or 
        regulation 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, or similar institution subject to 
        the supervision, approval, regulation, or insuring of a Federal 
        entity for lending regulation; and
            ``(8) the term `Federal agency lender' means the Federal 
        Housing Administration, the Farm Credit 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.''.
    (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, and the National 
        Credit Union Administration Board, and with respect to a 
        particular regulated lending institution, means the entity 
        primarily responsible for the supervision, approval, insuring, 
        or regulation of the institution;
            ``(8) the term `regulated lending institution' means a 
        bank, savings and loan association, credit union, or similar 
        institution subject to the supervision, approval, regulation, 
        or insuring of a Federal entity for lending regulation;
            ``(9) the term `Federal agency lender' means the Federal 
        Housing Administration, the Farm Credit 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 `natural and beneficial floodplain 
        functions' means--
                    ``(A) the functions associated with the natural or 
                relatively undisturbed floodplain that moderate 
                flooding, retain flood waters, reduce erosion and 
                sedimentation, and mitigate the effects of waves and 
                storm surge from storms; and
                    ``(B) ancillary beneficial functions, including 
                maintenance of water quality, recharge of ground water, 
                and provision of fish and wildlife habitats;
            ``(11) 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 within a 60-year 
        period;
            ``(12) the term `erosion control measures' means a 
        community's efforts to control erosion through nonstructural 
        and structural projects;
            ``(13) the term `baseline reference feature' means an 
        identifiable and prevalent physical or mapped feature of a 
        shoreline from which erosion shall be measured;
            ``(14) the term `readily movable structure' means a small 
        permanent structure of less than 5,000 square feet that is 
        designed, sited, and built to accomplish relocation at a 
        reasonable cost relative to other structures of the same size 
        and construction and that has access of sufficient width and 
        acceptable grade to permit such relocation; and
            ``(15) the term `repetitive loss structure' means an 
        insured property that has 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) 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) In General.--Section 102(b) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(b)) (as amended by section 101(b)) is 
further amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) 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)''; and
            (3) by adding at the end the following new paragraphs:
    ``(2) The Director of the Office of Federal Housing Enterprise 
Oversight (after consultation and coordination with the Federal 
Financial Institutions Examination Council) shall by regulation direct 
that the Federal National Mortgage Association and the Federal Home 
Loan Mortgage Corporation 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 of the Federal 
        Emergency Management Agency, as an area of special flood 
        hazards and in which flood insurance is available under the 
        National Flood Insurance Act of 1968, and
            ``(B) purchased by either such entity,
        are covered for the term of the loan by flood insurance in the 
        amount provided in paragraph (1).
    ``(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, renews, or purchases, 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 of the Federal 
        Emergency Management Agency as an area of 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 paragraph (1).''.
    (b) Effective Date.--The provisions of 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 loans 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. 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. 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 
of 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 of 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, 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 in special flood hazard areas, of the 
requirement that Federal flood insurance be purchased for insurable 
structures located within the special flood hazard areas in the 
community.
    ``(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 of special flood hazards, a description of the flood 
insurance purchase requirements under section 102(b) of this title, 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 
              OR FEDERAL AGENCY LENDER.

    (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 further 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 
        any 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 of special flood 
        hazards and in which flood insurance is available under this 
        title, a regulated lending institution or Federal agency lender 
        determines that the building or manufactured home and any 
        personal property securing the loan held or serviced by the 
        regulated lending institution or Federal agency lender is not 
        covered by flood insurance, in an amount not less than the 
        amount required by subsection (b)(1), the regulated lending 
        institution or Federal agency lender shall notify the borrower 
        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)(1), for the term of the loan. If, 
        not later than 60 days after receiving such notification, the 
        borrower fails to purchase such flood insurance, the regulated 
        lending institution or Federal agency lender 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 or Federal agency lender in purchasing the 
        insurance.
            ``(2) Review.--
                    ``(A) By the director.--A borrower may request that 
                the Director review a determination that the improved 
                real estate or manufactured home securing the loan is 
                located in an area of 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 a special flood hazards area. The 
                determination of the Director shall be final.
                    ``(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 of special flood hazards, such person 
                shall have no obligation under this title to require 
                the purchase of flood insurance on the property.''.
    (b) Applicability.--Section 102(e) of the Flood Disaster Protection 
Act (as added by subsection (a)) shall apply to all loans outstanding 
on or after the date of enactment of the National Flood Insurance 
Reform Act of 1993.

SEC. 205. STANDARD FLOOD HAZARD DETERMINATION FORMS.

    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, 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 of 
special flood hazards and in which flood insurance is available under 
this title.
    ``(b) Design and Contents.--The determination form shall state 
whether the property is in an area of 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 and the Federal Home Loan 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, purchasing, or servicing a loan may 
rely on a previous determination as to whether property is in a special 
flood or erosion hazard area, if the previous determination was made 
not later than 5 years after the date of the transaction, and the basis 
for the previous determination has been set forth on a determination 
form.''.

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 Reform Act of 1993, 
        and biannually thereafter for the next 4 years, each 
        appropriate Federal banking agency shall submit a report to 
        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 Reform Act of 1993, 
        and biannually thereafter for the next 4 years, the Board shall 
        submit a report to 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(a) and 204(a)) is further 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 
        shall 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. 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 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 and Federal agency lenders 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:

   ``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 inserting after ``Sec. 1315.'' the following: ``(a) 
        Requirement for Participation in Flood Insurance Program.--''; 
        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 to evaluate the measures 
        adopted by communities voluntarily participating in the 
        community rating system, to provide incentives for measures to 
        reduce the risk of flood or erosion damage that exceed the 
        criteria set forth in section 1361, to encourage adoption of 
        more effective measures for floodplain and erosion management, 
        and 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 and 
        erosion 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 
        implemented measures relating to--
                    ``(A) the protection of natural and beneficial 
                floodplain functions; and
                    ``(B) the management of erosion hazards.
            ``(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.''.
    (b) Reports.--Two years after the date of enactment of the National 
Flood Insurance Reform Act of 1993 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. 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 program under section 
        1315(b);''.

            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(a)) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Director of the Federal Emergency Management Agency 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 1362.

    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. 1366. NATIONAL FLOOD AND EROSION MITIGATION PROGRAM.

    ``(a) Expenditures.--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 
the National Flood Insurance Reform Act of 1993 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 this section.''.

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.) is amended by adding at the end the 
following new section:

``SEC. 1367. STATE AND COMMUNITY MITIGATION ASSISTANCE.

    ``(a) Authority.--The Director shall develop and implement a 
financial assistance program with amounts made available under section 
1366 to States and communities for planning and activities designed to 
reduce the risk of flood and erosion damage to insured structures.
    ``(b) Mitigation Plan Requirement.--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 and if applicable, erosion 
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.
    ``(c) Notification of Approval.--Not later than 120 days after the 
submission of a mitigation plan, the Director shall notify the State or 
community submitting the plan of the Director's approval or disapproval 
of the plan. If the Director does not approve a plan, the Director 
shall notify the State or community 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) 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
            ``(3) the provision of technical assistance by States to 
        communities and individuals to conduct eligible mitigation 
        activities.
    ``(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.
    ``(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.--The Director shall conduct 
oversight of recipients of mitigation assistance to ensure that the 
mitigation assistance is used in compliance with approved plans.
    ``(i) Recapture.--If the Director determines that a State or 
community that has received mitigation assistance has not carried out 
the mitigation activities as set forth in the mitigation plan, 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 of special flood 
hazards, and that is participating in the National Flood Insurance 
Program.''.
    (b) Regulations.--Not later than 6 months after date of enactment 
of this Act, the Director of the Federal Emergency Management Agency 
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 of the Federal Emergency Management Agency 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 of the Federal Emergency Management 
Agency (hereafter in this title referred to as 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.

SEC. 406. LIMITATIONS ON NEW FLOOD INSURANCE COVERAGE IN EROSION HAZARD 
              AREAS.

    The National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
is amended by inserting after section 1313 the following new section:

``SEC. 1314. PROPERTIES LOCATED WITHIN 30-YEAR AND 60-YEAR EROSION 
              HAZARD AREAS.

    ``(a) Properties Located Within 30-Year Erosion Hazard Area.--After 
the establishment of erosion hazard areas under section 1360(i), the 
Director may not make flood insurance available within a 30-year 
erosion hazard area with respect to any new--
            ``(1) construction; or
            ``(2) addition to an existing structure, if the addition 
        makes the structure not readily movable.
    ``(b) Properties Located Within 60-Year Erosion Hazard Area and 
Outside 30-Year Erosion Hazard Area.--After the establishment of 
erosion hazard areas under section 1360(i), the Director may not make 
flood insurance available with respect to any new--
            ``(1) nonresidential structure;
            ``(2) residential structure that is not readily movable; or
            ``(3) addition to an existing structure, if the addition 
        makes the structure not readily movable;
that is constructed or relocated landward of the 30-year erosion hazard 
area and within the 60-year erosion hazard area established by the 
Director under such section.''.

SEC. 407. RIVERINE EROSION STUDY.

    (a) Study.--The Director shall conduct a study to determine the 
feasibility of identifying and establishing riverine erosion hazard 
areas, erosion rates, and baseline reference features, and the best 
methods of community management of such hazards consistent with section 
1361 of the National Flood Insurance Act of 1968. In conducting the 
study, the Director shall--
            (1) investigate and assess existing and state-of-the-art 
        technical methodologies for assessing riverine erosion;
            (2) examine and evaluate natural riverine processes, 
        environmental conditions, human-induced changes to the banks of 
        rivers and streams, examples of erosion and likely causes, and 
        examples of erosion control; and
            (3) analyze riverine erosion management strategies, the 
        technical standards, methods, and data necessary to support 
        such strategies, and methods of administering such strategies 
        through the National Flood Insurance Program.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Director shall submit a report to the Congress regarding 
the findings and conclusions of the study under this section. The 
report shall include any recommendations of the Director regarding 
appropriate methods and approaches for identifying and determining 
riverine erosion hazard areas and management strategies relating to 
riverine erosion.

SEC. 408. COORDINATION WITH COASTAL ZONE MANAGEMENT PROGRAMS.

    (a) In General.--In the implementation of this title and the 
amendments made pursuant to this title, the Director shall consult with 
the Under Secretary of Commerce for Oceans and Atmosphere and 
representatives from State coastal zone management programs to promote 
full coordination of the erosion management provisions of the National 
Flood Insurance Act of 1968 as amended by this Act, and the provisions 
of the Coastal Zone Management Act of 1972. The Director shall, to the 
greatest extent possible, utilize State management programs approved 
under section 306 of the Coastal Zone Management Act of 1972 to 
facilitate development and implementation of regulations and guidelines 
for this title.
    (b) Coordination Report.--The Director and the Under Secretary of 
Commerce for Oceans and Atmosphere shall jointly prepare a report that 
details the proposed mechanisms for achieving the coordination required 
in subsection (a). This report shall be transmitted to the Congress not 
later than 2 years after the date of enactment of this Act.

                  TITLE V--FLOOD INSURANCE TASK FORCE

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 11 
        members, who shall be the designees of--
                    (A) the Director of the Federal Emergency 
                Management Agency;
                    (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; and
                    (H) the chairman of the Board of Directors of the 
                Federal National Mortgage Association.
            (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 the extent to which the flood insurance premium 
        rate structure could be revised to minimize existing premium 
        rate subsidies, to incorporate premium rate adjustments for 
        erosion hazards, to account for catastrophic loss events, and 
        propose strategies to establish an actuarial-based premium 
        structure to account for all insurable risks identified under 
        the National Flood Insurance Act of 1968, as amended by this 
        Act; and
            (5) 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).

                   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 of $90,000 for any single-family dwelling and 
        $240,000 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 of $2,400,000 for each 
        structure and $2,400,000 for any contents related to each 
        structure; and''.
    (b) Removal of Ceiling on Coverage Required.--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 and 
        inserting a period;
            (2) by striking paragraph (6); and
            (3) by adding at the end the following new flush sentence:
``Upon determining that a property is a repetitive loss structure, 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).''.
    (c) 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.

    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 adopted by 
the State or community pursuant to section 1315, 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''.

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.

    (a) 5-Year Updates.--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 Reform Act of 1993), 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 and the State or 
community making the request agrees to provide not less than 50 percent 
of the cost, or the equivalent value of data, technical analysis, or 
other in-kind services, for the requested revision or update, the 
Director shall review and update the flood insurance rate map for the 
State or community.
    ``(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 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, not later than 30 days after 
the map change or revision under this section becomes effective, 
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. 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.--Every 6 months, 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 States and communities 
participating in the National Flood Insurance Program pursuant to 
section 1310 and at cost to all other parties.''.
    (b) Assessment, Identification, and Mapping of Erosion Hazard 
Areas.--Section 1360 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101) (as amended by subsection (a)) is further amended by 
adding at the end the following new subsection:
    ``(i) Assessment, Identification, and Mapping of Erosion Hazard 
Areas.--
            ``(1) In general.--Not later than 60 months after the date 
        of enactment of the National Flood Insurance Reform Act of 
        1993, the Director shall, using erosion rate information and 
        other historical data, assess, identify, and map all erosion 
        hazard areas.
            ``(2) Mapping priorities.--Not later than 2 years after the 
        date of enactment of the National Flood Insurance Reform Act of 
        1993, the Director shall determine areas that are at greatest 
        risk from erosion and assess, identify, and map the erosion 
        hazard areas in these areas.
            ``(3) Consideration of mitigation activities.--In 
        identifying and mapping erosion hazard areas, the Director 
        shall determine erosion rates based on the presence of any 
        community erosion control measures and erosion of the area in 
        the absence of the project. The Director shall use the lower 
        estimated erosion rate in the determination of erosion hazard 
        areas.
            ``(4) Transition.--Until the Director has assessed, 
        identified, and mapped erosion rate data for a community, the 
        community may obtain, review, and reasonably use erosion rate 
        information or other historical data available from other 
        Federal, State, or other sources in order to develop a 
        mitigation plan.
            ``(5) State erosion rate data and baseline reference 
        features and state and community loss reduction programs.--The 
        Director shall, to the maximum extent practicable, use State or 
        community erosion rate data and baseline reference features in 
        designating erosion hazard areas under this title.
            ``(6) Erosion hazards.--On each flood insurance rate map 
        established under this section, the Director shall publish 
        erosion rates for areas that are subject to erosion hazards. 
        These erosion rates shall be used to identify areas that are 
        subject to erosion hazards within a 60-year period (hereafter 
        referred to as the `60-year erosion hazard area'), and for 
        areas that are subject to erosion hazards within a 30-year 
        period (hereafter referred to as the `30-year erosion hazard 
        area') as measured from a baseline reference feature. On each 
        flood insurance rate map, the Director shall identify and 
        provide legible demarcation of the baseline reference feature. 
        The Director may also provide for legible demarcation of 
        erosion hazard areas where map scale or other limitations allow 
        for such demarcation.
            ``(7) Revision of erosion hazard areas.--In revising the 
        demarcation of the baseline reference feature and erosion rate 
        data, the legible demarcation of erosion hazard areas, or 
        geographical boundaries of erosion hazard areas, the Director 
        shall give special consideration to--
                    ``(A) areas (or subdivisions thereof) that are 
                experiencing or have recently experienced erosion rates 
                in excess of the erosion rate established under this 
                section, due to storms, high lake levels, or other 
                extraordinary events creating a dynamic change in the 
                local erosion rate; and
                    ``(B) areas in which community erosion control 
                measures have been implemented or erosion rates 
                established under this section have been significantly 
                altered otherwise by manmade or induced activity.
            ``(8) Review.--The Director shall consult with State and 
        community governments in the determination of erosion hazard 
        areas, and shall provide for a public review and appeals 
        process comparable to the established review and appeals 
        process for flood elevation determinations required under this 
        title.''.

SEC. 605. 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 
        of the Federal Emergency Management Agency (hereafter in this 
        section referred to as 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. 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 302) 
is further amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``(except as otherwise provided)'' after ``without fiscal year 
        limitation''; and
            (2) by adding at the end the following new paragraphs:
            ``(7) for assessment and mapping of erosion hazard areas 
        under section 1360(i), except that the fund shall be available 
        for the purpose under this paragraph in an amount not to exceed 
        an aggregate of $25,000,000 over the 5-year period beginning on 
        the date of enactment of the National Flood Insurance Reform 
        Act of 1993; and
            ``(8) 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 Reform Act of 1993.''.
    (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. REGULATIONS.

    The Director of the Federal Emergency Management Agency, and any 
head of an 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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