[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1269 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1269

To amend the Toxic Substances Control Act, the Internal Revenue Code of 
1986, and the Public Buildings Act of 1959 to protect human health from 
                  toxic mold, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2005

 Mr. Conyers introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
Financial Services, Ways and Means, and the Judiciary, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Toxic Substances Control Act, the Internal Revenue Code of 
1986, and the Public Buildings Act of 1959 to protect human health from 
                  toxic mold, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States 
Toxic Mold Safety and Protection Act of 2005'' or the ``Melina Bill''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

                 TITLE I--RESEARCH AND PUBLIC EDUCATION

Sec. 101. Definitions.
Sec. 102. Health effects study and report.
Sec. 103. Standards for preventing, detecting and remediating indoor 
                            mold growth.
Sec. 104. Public education program.
             TITLE II--HOUSING AND REAL PROPERTY PROVISIONS

Sec. 201. Inspection of residential property.
Sec. 202. Sale or lease of residential property.
Sec. 203. Inspection requirements for existing public housing.
Sec. 204. Construction requirements for new public housing.
Sec. 205. Building codes.
Sec. 206. Inspection requirement in connection with federally made or 
                            insured mortgages.
               TITLE III--INDUSTRY STANDARDS DEVELOPMENT

Sec. 301. Industry Standards Development.
                TITLE IV--INDOOR MOLD HAZARD ASSISTANCE

Sec. 401. Grants for remediation of public buildings.
                        TITLE V--TAX PROVISIONS

Sec. 501. Tax credit for toxic mold inspection and remediation.
         TITLE VI--NATIONAL TOXIC MOLD HAZARD INSURANCE PROGRAM

                     Subtitle A--Insurance Program

Sec. 601. Program authority.
Sec. 602. Scope of program and priorities.
Sec. 603. Nature and limitation of insurance coverage.
Sec. 604. Estimates of premium rates.
Sec. 605. Establishment of chargeable premium rates.
Sec. 606. National toxic mold hazard insurance fund.
Sec. 607. Operating costs and allowances.
Sec. 608. Payment of claims.
Sec. 609. Dissemination of insurance information.
Sec. 610. Coordination with other programs.
Sec. 611. Reports.
    Subtitle B--Organization and Administration of Insurance Program

Sec. 621. Implementation.
       Part 1--Industry Program With Federal Financial Assistance

Sec. 631. Industry insurance pool.
Sec. 632. Agreements with insurance pool.
Sec. 633. Adjustment and payment of claims and judicial review.
Sec. 634. Premium equalization payments.
Sec. 635. Emergency implementation of program.
          Part 2--Government Program With Industry Assistance

Sec. 641. Federal operation of program.
Sec. 642. Adjustment and payment of claims and judicial review.
              Part 3--Provisions of General Applicability

Sec. 651. Services by insurance industry.
Sec. 652. Use of insurance pool, companies, or other private 
                            organizations for certain payments.
Sec. 653. Settlement and arbitration.
Sec. 654. Records and audits.
                  Subtitle C--Miscellaneous Provisions

Sec. 661. Definitions.
Sec. 662. Payments.
Sec. 663. Government corporation control act.
Sec. 664. Finality of certain transactions.
Sec. 665. Authorization of appropriations.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Medicaid waiver.

                 TITLE I--RESEARCH AND PUBLIC EDUCATION

SEC. 101. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``mold'' means any furry growth of minute 
        fungi occurring in moist conditions;
            (2) the term ``toxic mold'' means any indoor mold growth 
        capable of creating toxins that can cause pulmonary, 
        respiratory, neurological or other major illnesses after 
        minimal exposure, as such exposure is defined by the 
        Environmental Protection Agency, Center for Disease Control, 
        National Institute of Health or other Federal, State or local 
        agency organized in part to study and/or protect human health;
            (3) the term ``toxic mold risk assessor'' means a person 
        who establishes the level of risk to public health associated 
        with toxic mold; and
            (4) the term ``mold inspection'' means an inspection of 
        real property that is designed to discover indoor mold growth, 
        toxic mold growth, conditions that facilitate indoor mold 
        growth and/or indicia of conditions that are likely to 
        facilitate indoor mold growth.

SEC. 102. RESEARCH AND REPORTING.

    (a) The Centers for Disease Control and Prevention, the 
Environmental Protection Agency, and the National Institutes of Health 
shall jointly undertake a comprehensive study of the health effects of 
indoor mold growth and toxic mold. The results of the aforementioned 
study shall be submitted to the Congress, the President and the general 
public. The study should ascertain among other things--
            (1) detailed information about harmful and/or toxic strains 
        of mold;
            (2) methods of detecting harmful and/or toxic mold;
            (3) potential dangers of prolonged exposure to indoor mold 
        growth;
            (4) minimum levels of exposure at which indoor mold growth 
        is harmful to human health; and
            (5) the hazards involved in mold remediation.
    (b) The Department of Housing and Urban Development shall study and 
report the impact of construction standards on indoor mold growth.
    (c) EPA Study.--The Administrator of the Environmental Protection 
Agency shall conduct a comprehensive study on the economic impact of 
mold on home owners, renters, businesses, residential and commercial 
real estate, and litigation.
    (d) All research and study conducted pursuant to this Act shall be 
ongoing with updated reports published as needed to adequately inform 
the public and protect human health.

SEC. 103. STANDARDS FOR PREVENTING, DETECTING, AND REMEDIATING INDOOR 
              MOLD GROWTH.

    (a) After appropriate research and study as required by this Act, 
but not later than one year after the effective date of this Act, the 
Environmental Protection Agency, in conjunction with appropriate 
Federal agencies, shall promulgate national standards that include, 
among other things--
            (1) standards for mold inspection, mold remediation, 
        testing the toxicity of mold, and protection of mold 
        remediators;
            (2) standards for certification of mold inspectors, mold 
        remediators, mold testing labs, mold risk assessors and 
        industrial hygienist involved with mold remediation planning; 
        and
            (3) standards for the design, installation, and maintenance 
        of air ventilation and/or air-conditioning systems to prevent 
        mold growth or creation of conditions that foster mold growth, 
        such as moisture intrusion.
    (b) After appropriate research and study as required by this Act, 
but not later than one year after the effective date of this Act, the 
Secretary of the Department of Housing and Urban Development shall 
publish guidelines for building design, construction, operation, and 
maintenance to prevent conditions that foster mold growth, such as 
moisture intrusion, and recommending appropriate means of eliminating 
those conditions. These guidelines include identification of conditions 
that foster mold growth prior to construction, and shall recommend 
appropriate means of eliminating those conditions.
    (c) To the maximum extent possible, the standards, guidelines and 
recommendations established under this section shall be developed with 
the assistance of organizations involved in establishing national 
building construction standards representatives of State or local 
authorities responsible for building inspections and issuance of 
certificates of occupancy.
    (d) The Environmental Protection Agency and the Department of 
Housing and Urban Development shall make drafts of their respective 
documents available for public review and comment 30 days prior to 
publication. The Environmental Protection Agency and the Department of 
Housing and Urban Development shall make final model standards and 
techniques available to the public no later than one year after the 
effective date of this Act.
    (e) The Environmental Protection Agency shall take such actions as 
may be necessary to inform appropriate State and local government 
agencies and authorities of the model standards and techniques with the 
goal of ensuring that such agencies and authorities adopt such 
standards and techniques by June 1, 2004.
    (f) All standards and guidelines promulgated pursuant to this Act 
shall be updated and published as needed to adequately inform the 
public and protect human health.

SEC. 104. PUBLIC EDUCATION.

    (a) The Environmental Protection Agency, the Centers for Disease 
Control and Prevention, the National Institutes of Health, and the 
Department of Housing and Urban Development, and other relevant 
agencies shall sponsor public education programs to promote and 
increase public awareness of the dangers of indoor mold growth or toxic 
mold.
    (b) The public education programs should include, among other 
things, information regarding the conditions that facilitate indoor 
mold growth; guidelines for remediating indoor mold growth; dangers of 
exposure to indoor mold growth in public buildings; risk assessment and 
inspection methods for toxic mold; and other necessary information as 
determined by the Administrator of the Environmental Protection Agency.
            (1) The public education programs shall provide education 
        and information through modes of communication that are 
        commonly utilized and able to be easily consumed by relevant 
        individuals or organizations.
            (2) Public education programs should be designed to reach 
        health professionals; the general public; homeowners, 
        prospective homeowners, landlords, and tenants; consumers of 
        home improvement products; the real estate industry; the home 
        construction and renovation industry, including the heating and 
        air conditioning industry; and other individuals and 
        organizations with an interest in the use and/or occupancy of 
        real property.
    (c) Notwithstanding the foregoing, the Environmental Protection 
Agency, in consultation with appropriate agencies, shall publish, and 
periodically revise, a pamphlet regarding indoor mold hazards. Among 
other things this pamphlet should--
            (1) contain information regarding the health risks 
        associated with exposure to indoor mold growth;
            (2) provide information on the hazards of indoor mold 
        growth in federally assisted and federally owned housing;
            (3) describe the risks of mold exposure for persons 
        residing in a dwelling with toxic mold;
            (4) provide information on approved methods for evaluating 
        and reducing mold growth and their effectiveness in 
        identifying, reducing, eliminating, or preventing mold growth;
            (5) advise persons how to obtain a list of persons 
        certified to inspect or remediate mold growth in the area in 
        which the pamphlet is to be used;
            (6) state that a risk assessment or inspection for mold 
        growth is recommended prior to the purchase, lease, or 
        renovation of target housing;
            (7) state that certain State and local laws impose 
        additional requirements related to mold growth in housing and 
        provide a listing of Federal, State, and local agencies in each 
        State, including address and telephone number, that can provide 
        information about applicable laws and available governmental 
        and private assistance and financing; and
            (8) provide information deemed appropriate and/or necessary 
        to promote awareness of the hazards posed by indoor mold.
    (d) There is authorized to be appropriated such sums as may be 
necessary to carry out this section.

  TITLE II--HOUSING PROVISIONS FOR INDOOR MOLD HAZARD PREVENTION AND 
                               DETECTION

SEC. 201. INSPECTIONS OF RESIDENTIAL PROPERTY.

    Beginning with the calendar year 2004, the lessor of each unit of 
rental property shall conduct an annual inspection of such property in 
accordance with the model standards and techniques set forth in section 
103 and shall promptly notify the occupants of such property of the 
results of such inspection.

SEC. 202. SALE OR LEASE OF RESIDENTIAL PROPERTY.

    (a) Not later than 2 years after the date of enactment of this Act, 
the Secretary of Housing and Urban Development and the Administrator of 
the Environmental Protection Agency shall promulgate regulations under 
this section for the disclosure of mold hazards in housing which is 
offered for sale or lease.
    (b) The regulations shall require that, before the sale or lease of 
real property a mold inspection be conducted by a State-certified mold 
inspector and, within a reasonable time prior to the effective date of 
the purchase or lease, the seller or lessor shall clearly and 
accurately disclose to the purchaser or lessee the results of the 
inspection required under this subsection.
    (c) Regulations promulgated under this section shall provide that 
every contract for the sale or lease of any interest in housing shall 
contain a statement signed by both the seller or lessor and by the 
purchaser or lessee that acknowledges the result of the mold inspection 
required by subsection (b).
    (d)(1) Any person who knowingly misrepresents the results of a mold 
inspection or causes the results of a mold inspection to be inaccurate 
shall be subject to civil money penalties in accordance with the 
provisions of section 102 of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3545).
    (2) Any person who knowingly violates the provisions of this 
section shall be jointly and severally liable to the purchaser or 
lessee in an amount equal to 3 times the amount of damages incurred by 
such individual.
    (3) In any civil action brought for damages, the appropriate court 
may award court costs to the party commencing such action, together 
with reasonable attorney fees and any expert witness fees, if that 
party prevails.
    (e) The regulations under this section shall take effect 3 years 
after the date of the enactment of this Act.

SEC. 203. INSPECTION REQUIREMENTS FOR EXISTING PUBLIC HOUSING.

    (a) In General.--The Secretary of Housing and Urban Development 
shall establish procedures to eliminate, as far as practicable, the 
hazards of indoor mold with respect to any existing public housing 
which may present such hazards, in accordance with this section. Such 
procedures shall provide for appropriate measures to conduct risk 
assessments, inspections, interim controls, and abatement of indoor 
mold hazards.
    (b) Procedures.--At a minimum, such procedures shall require--
            (1) the provision of indoor mold hazard information 
        pamphlets to tenants;
            (2) periodic risk assessments and interim controls in 
        accordance with a schedule determined by the Secretary;
            (3) mold inspections;
            (4) abatement of indoor mold hazards identified;
            (5) where risk assessment, inspection, or reduction 
        activities have been undertaken, the provision of notice to 
        occupants describing the nature and scope of such activities 
        and the actual risk assessment or inspection reports; and
            (6) such other measures as the Secretary deems appropriate.
    (c) Transitional Testing and Abatement.--
            (1) Public housing receiving capital fund assistance.--The 
        inspection required under this section for public housing 
        assisted with amounts from the Capital Fund under section 9(d) 
        of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)) 
        shall be conducted with respect to--
                    (A) a random sample of dwellings and common areas 
                in all public housing projects assisted under such 
                section; and
                    (B) each dwelling in any public housing project in 
                which there is a dwelling determined under subparagraph 
                (A) to have indoor mold hazards.
            (2) Inspection.--The Secretary shall require the inspection 
        of all housing subject to this subsection in accordance with 
        the modernization schedule. A public housing agency may elect 
        to test for indoor mold hazards and may elect to abate such 
        hazards under standards more stringent than those established 
        under this section by the Secretary, and such abatement shall 
        qualify for assistance from the Capital Fund. The Secretary 
        shall require abatement of indoor mold hazards in housing in 
        which the test results equal or exceed the standard established 
        under this Act. Final inspection and certification after 
        abatement shall be made by a certified mold inspector, 
        industrial hygienist, or local public health official.
    (d) Schedule.--Three years after the date of enactment of this Act, 
the Secretary shall require the inspection of all housing subject to 
this section for mold. The Secretary may prioritize, within such 
period, inspections on the basis of vacancy, age of housing, or 
projected modernization or rehabilitation. The Secretary shall require 
abatement and final inspection and certification of such housing.
    (e) Report.--Not later than three and one-half years after the 
enactment of this Act, the Secretary shall submit a report to the 
Congress describing the results of the activities under this section.
    (f) Funding.--The Secretary shall use amounts available under the 
Capital Fund under section 9(d) of the United States Housing Act of 
1937 to carry out this section. The Secretary shall submit annually to 
the Congress an estimate of the funds required to carry out the 
provisions of this section.

SEC. 204. CONSTRUCTION REQUIREMENTS FOR NEW PUBLIC HOUSING.

    The Secretary of Housing and Urban Development shall take such 
actions and impose such standards and conditions as may be necessary or 
appropriate to ensure that public housing constructed after the date of 
the issuance of the model construction standards and techniques 
established under section 103, is constructed in accordance with such 
model standards and techniques.

SEC. 205. BUILDING CODES.

    (a) In General.--The Secretary of Housing and Urban Development 
shall develop model construction standards and techniques for 
preventing and controlling mold within new buildings.
    (b) Contents.--The model standards and techniques shall provide for 
geographic differences in construction types and materials, geology, 
weather, and other variables that may affect mold levels in new 
buildings.
    (c) Development and Publication.--To the maximum extent possible, 
these standards and techniques should be developed with the assistance 
of organizations involved in establishing national building 
construction standards and techniques. The Secretary shall make a draft 
of the document containing the model standards and techniques available 
for public review and comment. The Secretary shall make final model 
standards and techniques available to the public no later than one year 
after the effective date of this Act.

SEC. 206. INSPECTION REQUIREMENT IN CONNECTION WITH FEDERALLY MADE OR 
              INSURED MORTGAGES.

    (a) In General.--After December 31, 2006, no Federal agency (as 
such term is defined in section 551 of title 5, United States Code) may 
make, insure, or guarantee a mortgage or loan for purchase or lease of 
residential real property unless--
            (1) there has been an inspection of the property for the 
        presence of indoor mold growth, toxic mold and/or the 
        conditions that facilitate indoor mold growth hazards by a mold 
        inspector certified in accordance with standards promulgated 
        pursuant to this Act within a reasonable time prior to the 
        making, insuring, or guaranteeing of the mortgage or loan and 
        the results of the inspection are clearly and accurately 
        disclosed to the purchaser, seller and mortgagor; and
            (2) the contract for purchase and sale of an interest in 
        residential real property for which such mortgage or loan was 
        made contains a statement signed by the seller or lessor and by 
        the purchaser or lessee that paragraph (1) has been complied 
        with.
    (b) Regulations.--The heads of each of the agencies that make, 
insure, or guarantee mortgages or loans for purchase or lease of 
residential real property shall, not later than September 30, 2006, 
issue such regulations as may be necessary to carry out this section.

               TITLE III--INDUSTRY STANDARDS DEVELOPMENT

SEC. 301. INDUSTRY STANDARDS DEVELOPMENT.

    (a) Definitions.--Section 2 of the National Cooperative Research 
and Production Act of 1993 (15 U.S.C. 4301) is amended--
            (1) in subsection (a) by adding at the end the following:
            ``(7) The term `standards development activity' means any 
        action taken by a standards development organization for the 
        purpose of developing, promulgating, revising, amending, 
        reissuing, interpreting, or otherwise maintaining a voluntary 
        consensus standard for building products that are designed to 
        retard the development of mold or the storage of those products 
        or using such standard in conformity assessment activities.
            ``(8) The term `standards development organization' has the 
        same meaning as the terms `voluntary consensus standards body' 
        and `voluntary, private sector consensus standards body' as 
        such term are used in section 12(d) of the National Technology 
        Transfer and Advancement Act of 1995 and in Circular Number A-
        119, as revised February 10, 1998, of the Office of Management 
        and Budget.
            ``(9) The term `technical standard''has the meaning given 
        such term in section 12(d)(4) of the National Technology 
        Transfer and Advancement Act of 1995.
            ``(10) The term `voluntary consensus standard' has the 
        meaning given such term in Circular Number A-119, as revised 
        February 10, 1998, of the Office of Management and Budget.''; 
        and
            (2) by adding at the end the following:
    ``(c) The term `standards development activity' excludes the 
following activities:
            ``(1) Exchanging information among competitors relating to 
        cost, sales, profitability, prices, marketing, or distribution 
        of any product, process, or service that is not reasonably 
        required for the purpose of developing or promulgating a 
        voluntary consensus standard, or using such standard in 
        conformity assessment activities.
            ``(2) Entering into any agreement or engaging in any other 
        conduct that would allocate a market with a competitor.
            ``(3) Entering into any agreement or conspiracy that would 
        set or restrain prices of any good or service.''.
    (b) Rule of Reason Standard.--Section 3 of the National Cooperative 
Research and Production Act of 1993 (15 U.S.C. 4302) is amended by 
striking ``of any person in making or performing a contract to carry 
out a joint venture shall'' and inserting the following:
 ``of--
            ``(1) any person in making or performing a contract to 
        carry out a joint venture, or
            ``(2) a standards development organization while engaged in 
        a standards development activity, including a standards 
        development activity for building products that are designed to 
        retard the development of mold or the storage of those products 
        shall''.
    (c) Limitation on Recovery.--Section 4 of the National Cooperative 
Research and Production Act of 1993 (15 U.S.C. 4303) is amended--
            (1) in subsections (a)(1), (b)(1), and (c)(1) by inserting 
        ``, for a standards development activity engaged in by 
        standards development organization against which such claim is 
        made'' after ``joint venture'', and
            (2) in subsection (e)--
                    (A) by inserting ``, or of a standards development 
                activity engaged in by a standards development 
                organization'' before the period at the end, and
                    (B) by redesignating such subsection as subsection 
                (f), and
            (3) by inserting after subsection (d) the following:
    ``(e) Subsections (a), (b), and (c) shall not be construed to 
modify the liability under the antitrust laws of any person (other than 
a standards development organization) who--
            ``(1) directly (or through an employee or agent) 
        participates in a standards development activity with respect 
        to which a violation of any of the antitrust laws is found,
            ``(2) is not a full-time employee of the standards 
        development organization that engaged in such activity, and
            ``(3) is, or is an employee or agent of a person who is, 
        engaged in a line of commerce that is likely to benefit 
        directly from the operation of the standards development 
        activity with respect to which such violation is found.''.
    (d) Attorney Fees.--Section 5 of the National Cooperative Research 
and Production Act of 1993 (15 U.S.C. 4304) is amended--
            (1) in subsection (a) by inserting ``, or of a standards 
        development activity engaged in by a standards development 
        organization (including an organization developing standards 
        for building products that are designed to retard the 
        development of mold or the storage of those products)'' after 
        ``joint venture'', and
            (2) by adding at the end the following:
    ``(c) Subsections (a) and (b) shall not apply with respect to any 
person who--
            ``(1) directly participates in a standards development 
        activity (including developing standards for building products 
        that are designed to retard the development of mold or the 
        storage of those products) with respect to which a violation of 
        any of the antitrust laws is found,
            ``(2) is not a full-time employee of a standards 
        development organization (including an organization developing 
        standards for building products that are designed to retard the 
        development of mold or the storage of those products) that 
        engaged in such activity, and
            ``(3) is, or is an employee or agent of a person who is, 
        engaged in a line of commerce that is likely to benefit 
        directly from the operation of the standards development 
        activity with respect to which such violation is found.''.
    (e) Disclosure of Standards Development Activity.--Section 6 of the 
National Cooperative Research and Production Act of 1993 (15 U.S.C. 
4305) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively,
                    (B) by inserting ``(1)'' after ``(a)'', and
                    (C) by adding at the end the following:
    ``(2) A standards development organization (including an 
organization developing standards for building products that are 
designed to retard the development of mold or the storage of those 
products) may, not later than 90 days after commencing a standards 
development activity engaged in for the purpose of developing or 
promulgating a voluntary consensus standards or not later than 90 days 
after the date of the enactment of the Standards Development 
Organization Advancement Act of 2002, whichever is later, file 
simultaneously with the Attorney General and the Commission, a written 
notification disclosing--
            ``(A) the name and principal place of business of the 
        standards development organization, and
            ``(B) documents showing the nature and scope of such 
        activity.
Any standards development organization (including an organization 
developing standards for building products that are designed to retard 
the development of mold or the storage of those products) may file 
additional disclosure notifications pursuant to this section as are 
appropriate to extend the protections of section 4 to standards 
development activities that are not covered by the initial filing or 
that have changed significantly since the initial filing.'',
            (2) in subsection (b)--
                    (A) in the 1st sentence by inserting ``, or a 
                notice with respect to such standards development 
                activity that identifies the standards development 
                organization engaged in such activity and that 
                describes such activity in general terms'' before the 
                period at the end, and
                    (B) in the last sentence by inserting ``or 
                available to such organization, as the case may be'' 
                before the period,
            (3) in subsection (d)(2) by inserting ``, or the standards 
        development activity,'' after ``venture'',
            (4) in subsection (e)--
                    (A) by striking ``person who'' and inserting 
                ``person or standards development organization that'', 
                and
                    (B) by inserting ``or any standards development 
                organization (including an organization developing 
                standards for building products that are designed to 
                retard the development of mold or the storage of those 
                products)'' after ``person'' the last place it appears, 
                and
            (5) in subsection (g)(1) by inserting ``or standards 
        development organization (including an organization developing 
        standards for building products that are designed to retard the 
        development of mold or the storage of those products)'' after 
        ``person''.

                TITLE IV--INDOOR MOLD HAZARD ASSISTANCE

SEC. 401. GRANTS FOR REMEDIATION OF PUBLIC BUILDINGS AND SEVERELY 
              IMPACTED HOMES.

    (a) In General.--The Administrator of the Environmental Protection 
Agency shall make grants available to State and local governments to 
cover--
            (1) costs associated with remediating mold growth in 
        buildings owned or leased by such governments, including but 
        not limited to schools and multifamily dwellings, and to the 
        owners of residential properties, including both single family 
        and multi-family properties; and
            (2) the costs of temporary housing, food, and moving costs 
        for periods not in excess of 6 months for individuals severely 
        impacted by toxic mold in their residences who are without 
        insurance coverage for toxic mold and who do not have financial 
        resources to obtain alternative housing, as determined on a 
        case by case basis by the State or local government.
    (b) Use of Funds.--All funds included in a grant under subsection 
(a)(1) that are awarded to schools shall only be used for purposes of 
remediation, including the the costs of inspection, risk assessment, 
testing, remediation, and maintenance.

                        TITLE V--TAX PROVISIONS

SEC. 501. TAX CREDIT FOR TOXIC MOLD INSPECTION AND REMEDIATION.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT FOR MOLD INSPECTION AND REMEDIATION.

    ``(a) General Rule.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to 60 
percent of mold inspection and remediation expenses paid or incurred by 
the taxpayer during such taxable year.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any taxable year shall not exceed $50,000.
    ``(c) Mold Inspection and Remediation Expenses.--For purposes of 
this section, the term `mold inspection and remediation expenses' means 
expenses paid or incurred by the taxpayer (and not reimbursed by 
insurance or otherwise) to carry out--
            ``(1) a risk assessment or inspection of housing for the 
        presence of indoor mold hazards under section 202 of the United 
        States Toxic Mold Safety and Protection Act,
            ``(2) a risk assessment or inspection of any other building 
        for the presence of mold (as defined in section 101(2) of the 
        United States Toxic Mold Safety and Protection Act), or
            ``(3) a remediation of mold growth in housing or any other 
        building.
    ``(d) Denial of Double Benefit.--No deduction or credit under any 
other provision of this chapter shall be allowed with respect to mold 
inspection and remediation expenses taken into account for the credit 
under this section.
    ``(e) Certain Rules Made Applicable.--All persons treated as one 
employer under subsection (a) or (b) of section 52 shall be treated as 
1 taxpayer for purposes of this section.
    ``(f) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year, reduced by the 
        sum of the credits allowable under subpart A and the preceding 
        sections of this subpart, over
            ``(2) the tentative minimum tax for the taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:

``30B. Credit for mold inspection and remediation.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2006.

         TITLE VI--NATIONAL TOXIC MOLD HAZARD INSURANCE PROGRAM

                     Subtitle A--Insurance Program

SEC. 601. PROGRAM AUTHORITY.

    (a) In General.--The Director of the Federal Emergency Management 
Agency shall establish and carry out a national toxic mold insurance 
program to enable interested persons to purchase insurance against 
losses resulting from mold hazards in real properties located in the 
United States.
    (b) Participation.--In carrying out the toxic mold hazard insurance 
program under this title, the Director shall, to the maximum extent 
practicable, encourage and arrange for--
            (1) appropriate financial participation and risk sharing in 
        the program by insurance companies and other insurers; and
            (2) other appropriate participation on other than a risk-
        sharing basis, by insurance companies and other insurers, 
        insurance agents and brokers, and insurance adjustment 
        organizations, in accordance with the provisions of subtitle B.

SEC. 602. SCOPE OF PROGRAM AND PRIORITIES.

    (a) Priority of Program Scope.--In carrying out the toxic mold 
hazard insurance program, the Director shall afford a priority to 
making toxic mold hazard insurance available to cover residential 
properties which are designed for the occupancy of from one to four 
families.
    (b) Additional Scope.--If, pursuant to studies and investigations 
pursuant to section 604 or such other information as the Director 
considers appropriate, the Director determines that it would be 
feasible to extend the insurance program under this title to cover 
other properties, the Director may take such action under this title as 
may be necessary to make insurance available to cover, on such basis as 
may be feasible, any types and classes of--
            (1) other residential properties;
            (2) church properties, and business properties which are 
        owned or leased and operated by small business concerns;
            (3) other business properties;
            (4) properties occupied by private nonprofit organizations; 
        and
            (5) properties owned by State and local governments and 
        agencies thereof;
and any such extensions of the program to any types and classes of 
these properties shall from time to time be prescribed in regulations.

SEC. 603. NATURE AND LIMITATION OF INSURANCE COVERAGE.

    The Director shall from time to time, after consultation with 
interested parties (including the insurance authorities of the States), 
provide by regulation for general terms and conditions of insurability 
which shall be applicable to properties eligible for toxic mold hazard 
insurance coverage under section 602, including--
            (1) the types, classes, and locations of any such 
        properties which shall be eligible for such insurance;
            (2) the nature and limits of loss or damage that may be 
        covered by such insurance, which shall include costs of 
        property damage and loss, remediation, relocation (during 
        remediation or permanently), and rental of an alternative 
        dwelling during remediation;
            (3) the classification, limitation, and rejection of any 
        risks that may be appropriate;
            (4) appropriate minimum premiums;
            (5) appropriate loss-deductibles;
            (6) appropriate limits on aggregate liability under such 
        coverage, based on the type of property insured; and
            (7) any other terms and conditions relating to insurance 
        coverage or exclusion which may be necessary to carry out the 
        purposes of this title.

SEC. 604. ESTIMATES OF PREMIUM RATES.

    The Director shall undertake and carry out such studies and 
investigations and receive or exchange such information as may be 
necessary to estimate, and shall from time to time estimate the 
following premium rates for toxic mold hazard insurance coverage under 
this title:
            (1) Actuarial rates.--The risk premium rates that would be 
        required to make such insurance available on an actuarial basis 
        for any types and classes of properties for which insurance 
        coverage is available under section 602 and which--
                    (A) are based on consideration of the risk involved 
                and accepted actuarial principles;
                    (B) include the applicable operating costs and 
                allowances set forth in the schedules prescribed under 
                section 607 and reflected in such rates; and
                    (C) include any administrative expenses of carrying 
                out the insurance program under this title.
            (2) Subsidized rates.--The risk premium rates that--
                    (A) are less than the rates estimated under 
                paragraph (1);
                    (B) would be reasonable;
                    (C) would encourage prospective insureds to 
                purchase toxic mold hazard insurance coverage;
                    (D) would be consistent with the purposes of this 
                title; and
                    (E) include any administrative expenses incurred in 
                carrying out the insurance program under this title.

SEC. 605. ESTABLISHMENT OF CHARGEABLE PREMIUM RATES.

    (a) In General.--On the basis of estimates made under section 604 
and such other information as may be necessary, the Director shall from 
time to time, after consultation with the interested parties (including 
the insurance authorities of the States), prescribe by regulation--
            (1) chargeable premium rates for any types and classes of 
        properties for which insurance coverage shall be available 
        under section 602 (at less than the estimated risk premium 
        rates under section 604(1), where necessary), and
            (2) the terms and conditions under which, and the areas 
        within which, such rates shall apply.
    (b) Factors.--Such rates shall, insofar as practicable, be--
            (1) based on a consideration of the respective risks 
        involved, including differences in risks due to construction 
        types and materials, building systems, geology, climate, and 
        other factors that may affect mold levels in buildings;
            (2)(A) adequate, on the basis of accepted actuarial 
        principles, to provide reserves for anticipated losses; or
            (B) if less than such amount consistent with the objective 
        of making toxic mold hazard insurance coverage available where 
        necessary at reasonable rates so as to encourage prospective 
        insureds to purchase such insurance and with the purposes of 
        this title;
            (3) adequate to provide for any administrative expenses of 
        the insurance programs under this title; and
            (4) stated so as to reflect the basis for such rates, 
        including the differences (if any) between the estimated 
        actuarial risk premium rates under section 604(1) and the 
        estimated subsidized risk premium rates under section 604(2).
    (c) Full Actuarial Rates for Communities not in Compliance With 
Building Inspection, Certificate of Occupancy, and Public Disclosure 
Provisions.--Subject only to the limitation under subsection (d), the 
chargeable rate with respect to any property that is located within a 
jurisdiction that the Director determines has not adopted adequate 
toxic mold control measures, with effective enforcement provisions, 
that the Director determines are consistent with the model standards 
and techniques for inspection and certification of occupancy issued 
under section 201 and with the model standards for public disclosure 
issued under section 202, shall not be less than the applicable 
estimated risk premium rate for such area (or subdivision thereof) 
under section 604(1), except that such premium rate for such properties 
shall be affordable and reasonably priced.
    (d) Annual Limitation on Premium Increases.--Notwithstanding any 
other provision of this title, the chargeable risk premium rates for 
toxic mold hazard insurance under this title for any properties within 
any single risk classification may not be increased by an amount that 
would result in the average of such rate increases for properties 
within the risk classification during any 12-month period exceeding 10 
percent of the average of the risk premium rates for properties within 
the risk classification upon the commencement of such 12-month period.
    (e) $200 Maximum Premium for Single Family Dwellings.--The 
chargeable risk premium rate for toxic mold hazard insurance under this 
title for a single family dwelling shall be affordable and reasonably 
priced.

SEC. 606. NATIONAL TOXIC MOLD HAZARD INSURANCE FUND.

    (a) Establishment and Uses.--To carry out the toxic mold hazard 
insurance program under this title, the Director shall establish in the 
Treasury of the United States a National Toxic Mold Hazard Insurance 
Fund, which shall be an account separate from any other accounts or 
funds available to the Director and shall be available as described in 
subsection (f), without fiscal year limitation (except as otherwise 
provided in this section)--
            (1) for making such payments as may, from time to time, be 
        required under section 634;
            (2) to repay to the Secretary of the Treasury such sums as 
        may be borrowed (together with interest) pursuant to subsection 
        (e);
            (3) to the extent approved in appropriation Acts, to pay 
        any administrative expenses of the toxic mold hazard insurance 
        program; and
            (4) for the purposes specified in subsection (d) under the 
        conditions provided therein.
    (b) Credits.--The Fund shall be credited with--
            (1) any amounts borrowed under subsection (e);
            (2) any amounts as may be appropriated for the Fund;
            (3) interest which may be earned on investments of the Fund 
        pursuant to subsection (c);
            (4) receipts from any other operations under this title 
        (including premiums under the conditions specified in 
        subsection (d)); and
            (5) such other amounts as may be credited to the Fund.
    (c) Investment.--If the Director determines that the amounts in the 
Fund are in excess of current needs, the Director may request the 
investment of such amounts as the Director deems advisable by the 
Secretary of the Treasury in obligations issued or guaranteed by the 
United States.
    (d) Federal Operation of Program.--In the event the Director makes 
a determination under section 641 that operation of the toxic mold 
hazard insurance program, in whole or in part, should be carried out 
through the facilities of the Federal Government, the Fund shall be 
available for all purposes incident thereto, including--
            (1) costs incurred in the adjustment and payment of any 
        claims for losses, and
            (2) payment of applicable operating costs set forth in the 
        schedules prescribed under section 607,
for so long as the program is so carried out, and in such event any 
premiums paid shall be deposited by the Director to the credit of the 
Fund.
    (e) Borrowing.--
            (1) Authority.--To the extent that the amounts in the Fund 
        are insufficient to pay claims and expenses under the toxic 
        mold hazard insurance program, the Director may issue such 
        obligations of the Fund as may be necessary to cover the 
        insufficiency and the Secretary of the Treasury shall purchase 
        any such obligations issued.
            (2) Public debt transaction.--For the purpose of purchasing 
        any such obligations, the Secretary may use as a public debt 
        transaction the proceeds from the sale of any securities issued 
        under chapter 31 of title 31, United States Code, and the 
        purposes for which securities are issued under such chapter are 
        hereby extended to include any purchase by the Secretary of 
        such obligations under this subsection.
            (3) Characteristics of obligations.--Obligations issued 
        under this subsection shall be in such forms and denominations, 
        bear such maturities, bear interest at such rate, and be 
        subject to such other terms and conditions, as the Secretary 
        shall determine.
            (4) Treatment.--All redemptions, purchases, and sales by 
        the Secretary of obligations under this subsection shall be 
        treated as public debt transactions of the United States.
    (f) Availability.--The Fund shall be available, with respect to any 
fiscal year only to the extent approved in appropriation Acts; except 
that the Fund shall be available for the purpose described in 
subsection (d)(1) without such approval.

SEC. 607. OPERATING COSTS AND ALLOWANCES.

    (a) In General.--The Director shall from time to time negotiate 
with appropriate representatives of the insurance industry for the 
purpose of establishing--
            (1) a current schedule of operating costs applicable both 
        to risk-sharing insurance companies and other insurers and to 
        insurance companies and other insurers, insurance agents and 
        brokers, and insurance adjustment organizations participating 
        on other than a risk-sharing basis, and
            (2) a current schedule of operating allowances applicable 
        to risk-sharing insurance companies and other insurers,
which may be payable in accordance with the provisions of subtitle B, 
and such schedules shall from time to time be prescribed in 
regulations.
    (b) Definitions.--For purposes of subsection (a), the following 
definitions shall apply:
            (1) Operating allowances.--The term ``operating 
        allowances'' includes amounts for profit and contingencies that 
        the Director determines are reasonable and necessary to carry 
        out the purposes of this title.
            (2) Operating costs.--The term ``operating costs'' 
        includes--
                    (A) expense reimbursements covering the direct, 
                actual, and necessary expenses incurred in connection 
                with selling and servicing toxic mold hazard insurance 
                coverage;
                    (B) reasonable compensation payable for selling and 
                servicing such coverage, or commissions or service fees 
                paid to producers;
                    (C) loss adjustment expenses; and
                    (D) other direct, actual, and necessary expenses 
                which the Director finds are incurred in connection 
                with selling or servicing such insurance coverage.

SEC. 608. PAYMENT OF CLAIMS.

    The Director shall prescribe regulations establishing the general 
method or methods by which proved and approved claims for losses may be 
adjusted and paid for any losses or damages covered by toxic mold 
hazard insurance made available under this title.

SEC. 609. DISSEMINATION OF INSURANCE INFORMATION.

    The Director shall from time to time take such action as may be 
necessary in order to make information available to the public, and to 
any State or local agency or official, with regard to--
            (1) the toxic mold hazard insurance program, its coverage, 
        and objectives; and
            (2) estimated and chargeable insurance premium rates under 
        the program, including the basis for and differences between 
        such rates in accordance with the provisions of this subtitle.

SEC. 610. COORDINATION WITH OTHER PROGRAMS.

    In carrying out this title, the Director shall consult with other 
departments and agencies of the Federal Government, and with 
interstate, State, and local agencies having responsibilities for toxic 
mold inspection and prevention, in order to ensure that the programs of 
such agencies and the program under this title are mutually consistent.

SEC. 611. REPORTS.

    The Director shall annually submit a report of operations under 
this title to the Congress.

    Subtitle B--Organization and Administration of Insurance Program

SEC. 621. IMPLEMENTATION.

    Following such consultation with representatives of the insurance 
industry as may be necessary, the Director shall implement the toxic 
mold hazard insurance program under subtitle A in accordance with the 
provisions of part 1 of this subtitle, and, if a determination is made 
by the Director under section 641, under part 2 of this subtitle.

       PART 1--INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE

SEC. 631. INDUSTRY INSURANCE POOL.

    (a) Formation.--The Director may encourage and otherwise assist any 
insurance companies and other insurers that meet the requirements 
prescribed under subsection (b) to form, as associate, or otherwise 
join together in a pool--
            (1) in order to provide the insurance coverage authorized 
        under subtitle A; and
            (2) for the purpose of assuming, on such terms and 
        conditions as may be agreed upon, such financial responsibility 
        as will enable such companies and other insurers, with the 
        Federal financial and other assistance available under this 
        title, to assure a reasonable proportion of responsibility for 
        the adjustment and payment of claims for losses under the toxic 
        mold hazard insurance program.
    (b) Requirements.--To promote the effective administration of the 
toxic mold hazard insurance program under this part, and to ensure that 
the objectives of this title are furthered, the Director may prescribe 
appropriate requirements for insurance companies and other insurers 
participating in such pool, including minimum requirements for capital 
or surplus or assets.

SEC. 632. AGREEMENTS WITH INSURANCE POOL.

    (a) Authority.--The Director may enter into such agreements with 
the pool formed or otherwise created under this part as the Director 
deems necessary to carry out the purposes of this title.
    (b) Contents.--Such agreements shall specify--
            (1) the terms and conditions under which risk capital will 
        be available for the adjustment and payments of claims;
            (2) the terms and conditions under which the pool (and the 
        companies and other insurers participating therein) shall 
        participate in premiums received and profits or losses realized 
        or sustained;
            (3) the maximum amount of profit, established by the 
        Director and set forth in the schedules prescribed under 
        section 607, which may be realized by such pool (and the 
        companies and other insurers participating therein);
            (4) the terms and conditions under which operating costs 
        and allowances set forth in the schedules prescribed under 
        section 607 may be paid; and
            (5) the terms and conditions under which premium 
        equalization payments under section 634 will be made.
    (c) Participation.--In addition, such agreements shall contain such 
provisions as the Director finds necessary to ensure that--
            (1) no insurance company or other insurer that meets the 
        requirements prescribed under section 631(b) and has indicated 
        an intention to participate in the toxic mold hazard insurance 
        program on a risk-sharing basis, will be excluded from 
        participating in the pool;
            (2) the insurance companies and other insurers 
        participating in the pool will take whatever action may be 
        necessary to provide continuity of toxic mold hazard insurance 
        coverage by the pool; and
            (3) any insurance companies and other insurers, insurance 
        agents, and brokers and insurance adjustment organizations will 
        be permitted to cooperate with the pool as fiscal agents or 
        otherwise, on other than a risk-sharing basis, to the maximum 
        extent practicable.

SEC. 633. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    The insurance companies and other insurers that form, associate, or 
otherwise join together in the pool under this part may adjust and pay 
all claims for proved and approved losses covered by toxic mold hazard 
insurance in accordance with the provisions of this title and, upon the 
disallowance by any such company or other insurer of any such claim, or 
upon the refusal of the claimant to accept the amount allowed upon any 
such claim, the claimant, within one year after the date of mailing of 
notice of disallowance or partial disallowance of the claim, may 
institute an action on such claim against such company or other insurer 
in the United States district court for the district in which the 
insured property or the major part thereof shall have been situated, 
and original exclusive jurisdiction is hereby conferred upon such court 
to hear and determine such action without regard to the amount in 
controversy.

SEC. 634. PREMIUM EQUALIZATION PAYMENTS.

    (a) Payments.--The Director, on such terms and conditions as the 
Director may from time to time prescribe, shall make periodic payments 
to the pool formed or otherwise created under section 631, in 
recognition of such reductions in chargeable premium rates under 
section 605 below estimated premium rates under section 604(1) as are 
required in order to make toxic mold hazard insurance available on 
reasonable terms and conditions.
    (b) Periods and Methods.--Designated periods under this section and 
the methods for determining the sum of premiums paid or payable during 
such periods shall be established by the Director.

SEC. 635. EMERGENCY IMPLEMENTATION OF PROGRAM.

    (a) Authority.--Notwithstanding any other provisions of this title, 
for the purpose of providing toxic mold hazard insurance coverage at 
the earliest possible time, the Director may carry out the insurance 
program under subtitle A during the period ending September 30, 2006, 
in accordance with the provisions of this part and the other provisions 
of this title insofar as they relate to this part, but subject to the 
modifications made by or under subsection (b).
    (b) Premium Rates and Procedures.--In carrying out the toxic mold 
hazard insurance program pursuant to subsection (a), the Director--
            (1) shall provide insurance coverage without regard to any 
        estimated risk premium rates which would otherwise be 
        determined under section 604; and
            (2) shall utilize the provisions and procedures contained 
        in or prescribed by this part (other than section 634) and 
        sections 651 and 652 to such extent and in such manner as the 
        Director may consider necessary or appropriate to carry out the 
        purpose of this section.

          PART 2--GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE

SEC. 641. FEDERAL OPERATION OF PROGRAM.

    (a) Authority.--If at any time, after consultation with 
representatives of the insurance industry, the Director determines that 
operation of the toxic mold hazard insurance program as provided under 
part 1 cannot be carried out, or that such operation, in itself, would 
be assisted materially by the Federal Government's assumption, in whole 
or in part, of the operational responsibility for toxic mold insurance 
under this title (on a temporary or other basis), the Director shall 
promptly undertake any necessary arrangements to carry out the program 
of toxic mold hazard insurance under subtitle A through the facilities 
of the Federal Government, utilizing, for purposes of providing such 
insurance coverage--
            (1) insurance companies and other insurers, insurance 
        agents and brokers, and insurance adjustment organizations, as 
        fiscal agents of the United States;
            (2) such other officers and employees of any executive 
        agency (as defined in section 105 of title 5 of the United 
        States Code) as the Director and the head of any such agency 
        may from time to time, agree upon, on a reimbursement or other 
        basis; or
            (3) both the alternatives specified in paragraphs (1) and 
        (2).
    (b) Report.--Upon making the determination referred to in 
subsection (a), the Director shall make a report to the Congress and, 
at the same time, to the private insurance companies participating in 
the toxic mold hazard insurance program under this title. Such report 
shall--
            (1) state the reason for such determinations;
            (2) include findings that support such determination;
            (3) indicate the extent to which it is anticipated that the 
        insurance industry will be utilized in providing toxic mold 
        hazard insurance coverage under the program; and
            (4) contain such recommendations as the Director considers 
        appropriate.
The Director shall not implement the program of toxic mold hazard 
insurance under subtitle A through the facilities of the Federal 
Government before the expiration of the 9-month period beginning upon 
the date of submission of the report under this subsection unless it 
would be impossible to continue to effectively carry out the program 
operations during such period.

SEC. 642. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    If the program is carried out as provided in section 1341, the 
Director may adjust and make payment of any claims for proved and 
approved losses covered by toxic mold hazard insurance, and upon the 
disallowance by the Director of any such claims, or upon the refusal of 
the claimant to accept the amount allowed upon any such claim, the 
claimant, within one year after the date of mailing of notice of 
disallowance or partial disallowance by the Director, may institute an 
action against the Director on such claim in the United States district 
court for the district in which the insured property or the major part 
thereof shall have been situated, and original exclusive jurisdiction 
is hereby conferred upon such court to hear and determine such action 
without regard to the amount in controversy.

              PART 3--PROVISIONS OF GENERAL APPLICABILITY

SEC. 651. SERVICES BY INSURANCE INDUSTRY.

    (a) Contracts and Agreements.--In administering the toxic mold 
hazard insurance program under this subtitle, the Director may enter 
into any contracts, agreements, or other appropriate arrangements which 
may, from time to time, be necessary for the purpose of utilizing, on 
such terms and conditions as may be agreed upon, the facilities and 
services of any insurance companies or other insurers, insurance agents 
and brokers, or insurance adjustment organizations; and such contracts, 
agreements, or arrangements may include provision for payment of 
applicable operating costs and allowances for such facilities and 
services as set forth in the schedules prescribed under section 607.
    (b) Exemption From Competitive Bidding Requirements.--Any such 
contracts, agreements, or other arrangements may be entered into 
without regard to the provisions of section 3709 of the Revised 
Statutes (41 U.S.C. 5) or any other provisions of law requiring 
competitive bidding and without regard to the provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.).
    (c) Liability.--The Director of the Federal Emergency Management 
Agency shall hold any agent or broker selling or undertaking to sell 
toxic mold insurance coverage under this title harmless from any 
judgment for damages against such agent or broker as a result of any 
court action by a policyholder or applicant arising out of an error or 
omission on the part of the Federal Emergency Management Agency, and 
shall provide any such agent or broker with indemnification, including 
court costs and reasonable attorney fees, arising out of and caused by 
an error or omission on the part of the Federal Emergency Management 
Agency and its contractors. The Director of the Federal Emergency 
Management Agency may not hold harmless or indemnify an agent or broker 
for his or her error or omission.

SEC. 652. USE OF INSURANCE POOL, COMPANIES, OR OTHER PRIVATE 
              ORGANIZATIONS FOR CERTAIN PAYMENTS.

    (a) Authority.--To provide for maximum efficiency in the 
administration of the toxic mold hazard insurance program and to 
facilitate the expeditious payment of any Federal funds under such 
program, the Director may enter into contracts with a pool formed or 
otherwise created under section 631, or any insurance company or other 
private organization, for the purpose of securing performance by such 
pool, company, or organization or any or all of the following 
responsibilities:
            (1) Estimating and later determining any amounts of 
        payments to be made.
            (2) Receiving from the Director, disbursing, and accounting 
        for funds in making such payments.
            (3) Making such audits of the records of any insurance 
        company or other insurer, insurance agent or broker, or 
        insurance adjustment organization as may be necessary to assure 
        that proper payments are made.
            (4) Otherwise assisting in such manner as the contract may 
        provide to further the purposes of this title.
    (b) Terms and Conditions.--Any contract with the pool or an 
insurance company or other private organization under this section may 
contain such terms and conditions at the Director finds necessary or 
appropriate for carrying out responsibilities under subsection (a), and 
may provide for payment of any costs which the Director determines are 
incidental to carrying out such responsibilities which are covered by 
the contract.
    (c) Exemption From Competitive Bidding Requirements.--Any contract 
entered into under subsection (a) may be entered into without regard to 
section 3709 of the Revised Statutes (41 U.S.C. 5) or any other 
provision of law requiring competitive bidding.
    (d) Efficiency and Effectiveness.--No contract may be entered into 
under this section unless the Director finds that the pool, company, or 
organization will perform its obligations under the contract 
efficiently and effectively, and will meet such requirements as to 
financial responsibility, legal authority, and other matters as the 
Director finds appropriate.
    (e) Certification of Payments.--
            (1) Bonding.--Any such contract may require the pool, 
        company, or organization or any of its officers or employees 
        certifying payments or disbursing funds pursuant to the 
        contract, or otherwise participating in carrying out the 
        contract, to give surety bond to the United States in such 
        amount as the Director may deem appropriate.
            (2) Liability.--
                    (A) No individual designated pursuant to a contract 
                under this section to certify payments shall, in the 
                absence of gross negligence or intent to defraud the 
                United States, be liable with respect to any payment 
                certified by such individual under this section.
                    (B) No officer disbursing funds shall in the 
                absence of gross negligence or intent to defraud the 
                United States, be liable with respect to any payment by 
                such officer under this section if it was based upon a 
                voucher signed by an individual designated to certify 
                payments as provided in paragraph (2) of this 
                subsection.
    (f) Contract Term.--Any contract entered into under this section 
shall be for a term of one year, and may be made automatically 
renewable from term to term in the absence of notice by either party of 
an intention to terminate at the end of the current term; except that 
the Director may terminate any such contract at any time (after 
reasonable notice to the pool, company, or organization involved) if 
the Director finds that the pool, company, or organization has failed 
substantially to carry out the contract, or is carrying out the 
contract in a manner inconsistent with the efficient and effective 
administration of the toxic mold hazard insurance program under this 
title.

SEC. 653. SETTLEMENT AND ARBITRATION.

    (a) Authority.--The Director may make final settlement of any 
claims or demands which may arise as a result of any financial 
transactions that the Director is authorized to carry out under this 
subtitle, and may, to assist the Director in making any such 
settlement, refer any disputes relating to such claims or demands to 
arbitration, with the consent of the parties concerned.
    (b) Arbitration.--Such arbitration shall be advisory in nature, and 
any award, decision, or recommendation which may be made shall become 
final only upon the approval of the Director.

SEC. 654. RECORDS AND AUDITS.

    (a) Maintenance of Records.--The insurance pool formed or otherwise 
created under part 1 of this subtitle, and any insurance company or 
other private organization executing any contract, agreement, or other 
appropriate arrangement with the Director under part 2 or this part, 
shall keep such records as the Director shall prescribe, including 
records which fully disclose the total costs of the program undertaken 
or the services being rendered, and such other records as will 
facilitate an effective audit.
    (b) Access to Records.--The Director and the Comptroller General of 
the United States, or any of their duly authorized representatives, 
shall have access for the purpose of audit and examination to any 
books, documents, papers and any such insurance company or other 
private organization that are pertinent to the costs of the program 
undertaken or the services being rendered.

                  Subtitle C--Miscellaneous Provisions

SEC. 661. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Director.--The term ``Director'' means the Director of 
        the Federal Emergency Management Agency.
            (2) Fund.--The term ``Fund'' means the National Toxic Mold 
        Hazard Insurance Fund established under section 606.
            (3) Insurance adjustment organization.--The term 
        ``insurance adjustment organization'' includes any 
        organizations and persons engaged in the business of adjusting 
        loss claims arising under insurance policies issued by any 
        insurance company or other insurer.
            (4) Insurance company; other insurer; insurance agent or 
        broker.--The terms ``insurance company'', ``other insurer'' and 
        ``insurance agent or broker'' include any organizations and 
        persons authorized to engage in the insurance business under 
        the laws of any State.

SEC. 662. PAYMENTS.

    Any payments under this title may be made (after necessary 
adjustment on account of previously made underpayments or overpayments) 
in advance or by way of reimbursement, and in such installments and on 
such conditions, as the Director may determine.

SEC. 663. GOVERNMENT CORPORATION CONTROL ACT.

    The provisions of chapter 91 of title 31, United States Code, shall 
apply to the program under this title to the same extent that such 
provisions apply to wholly owned Government corporations.

SEC. 664. FINALITY OF CERTAIN TRANSACTIONS.

    Notwithstanding any other provisions of law--
            (1) any financial transaction authorized to be carried out 
        under this title, and
            (2) any payment authorized to be made or to be received in 
        connection with any such financial transaction,
shall be final and conclusive upon all officers of the Government.

SEC. 665. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may from time 
to time be necessary to carry out this title, including amounts--
            (1) to reimburse the National Toxic Mold Hazard Insurance 
        Fund established under section 604 for premium equalization 
        payments under section 634 which have been made from the Fund;
            (2) for studies under this title; and
            (3) to make such other payments as may be necessary to 
        carry out the purposes of this title.
Any amounts appropriate pursuant to this section shall be available 
without fiscal year limitation.

                   TITLE VII--HEALTH CARE PROVISIONS

SEC. 701. MEDICAID WAIVER.

    Notwithstanding any other provision of law, a State (as defined for 
purposes of title XIX of the Social Security Act) may waive income, 
resource, and other requirements otherwise applicable under such title 
in order to provide medical assistance to individuals--
            (1) whose health has been adversely impacted (as certified 
        by a physician) due to exposure to toxic mold; and
            (2) who do not have any health insurance coverage, or lack 
        adequate health insurance coverage, to treat the physical harm 
        due to toxic mold poisoning.
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