109 HR 1269 IH: United States Toxic Mold Safety and Protection Act of 2005
U.S. House of Representatives
2005-03-14
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the United States Toxic Mold Safety and Protection Act of 2005
or the Melina Bill
.
(b)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
<enum>I</enum><header>Research and public education</header>
<section id="H8F5C310C8C954E2FBCFA4262FCAA91FE"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this Act—</text>
<paragraph id="H881E2362D339453097009B832D3D4FE5"><enum>(1)</enum><text>the term <term>mold</term> means any furry growth of minute fungi occurring in moist conditions;</text></paragraph>
<paragraph id="HA7D957CEDE044B6B85178B4BD521E68E"><enum>(2)</enum><text>the term <term>toxic mold</term> 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;</text></paragraph>
<paragraph id="H63517B93A62F41B1AA33A0ED7E297641"><enum>(3)</enum><text>the term <term>toxic mold risk assessor</term> means a person who establishes the level of risk to public health associated with toxic mold; and</text></paragraph>
<paragraph id="H97977D740E8F4A9A8585991C45647E04"><enum>(4)</enum><text>the term <term>mold inspection</term> 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.</text></paragraph></section>
<section id="H85D4BA1A269B4D1E8310A0C03FFB97D3"><enum>102.</enum><header>Research and reporting</header>
<subsection id="HBA050D063AA346859EEA6BE3B023DFD"><enum>(a)</enum><text>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—</text>
<paragraph id="H9C927C2DCE574A16898F09102EA94010"><enum>(1)</enum><text>detailed information about harmful and/or toxic strains of mold;</text></paragraph>
<paragraph id="HC681152CAB5E4D1ABF8211DE86B21844"><enum>(2)</enum><text>methods of detecting harmful and/or toxic mold;</text></paragraph>
<paragraph id="H63886D00E7FB442CBCCEE54500BEE792"><enum>(3)</enum><text>potential dangers of prolonged exposure to indoor mold growth;</text></paragraph>
<paragraph id="H806E480FA28B438E94B9A4521F43E603"><enum>(4)</enum><text>minimum levels of exposure at which indoor mold growth is harmful to human health; and</text></paragraph>
<paragraph id="HB14659A0C7FC47178D406EAFCB0BA10"><enum>(5)</enum><text>the hazards involved in mold remediation.</text></paragraph></subsection>
<subsection id="HC4486F717D354B1488986769598BB598"><enum>(b)</enum><text>The Department of Housing and Urban Development shall study and report the impact of construction standards on indoor mold growth.</text></subsection>
<subsection id="HBD578E60203F42B4BE8700F93FDA03D" display-inline="no-display-inline"><enum>(c)</enum><header>EPA study</header><text display-inline="yes-display-inline">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.</text></subsection>
<subsection id="HB8EE8E48FDFE4AFD96F7BA76D9D8CD4"><enum>(d)</enum><text>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.</text></subsection></section>
<section id="H97AB41363E5D4CF3A4909B00B0041EC5"><enum>103.</enum><header>Standards for preventing, detecting, and remediating indoor mold growth</header>
<subsection id="HD85F86482A5842C7A92D9339007002AC"><enum>(a)</enum><text>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—</text>
<paragraph id="H75244D3EF1844C99B500175F486D97A6"><enum>(1)</enum><text>standards for mold inspection, mold remediation, testing the toxicity of mold, and protection of mold remediators;</text></paragraph>
<paragraph id="HE74382DA005645AA9DE7A9FFA7BCE37E"><enum>(2)</enum><text>standards for certification of mold inspectors, mold remediators, mold testing labs, mold risk assessors and industrial hygienist involved with mold remediation planning; and</text></paragraph>
<paragraph id="HA7C7D78390D84DF68F13C55E037EEEC6"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text></paragraph></subsection>
<subsection id="H39BE3F82797B4D3A88F36FF44670478B"><enum>(b)</enum><text>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.</text></subsection>
<subsection id="H9DBF34455EE840C8997161A5380011DB"><enum>(c)</enum><text>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.</text></subsection>
<subsection id="H34E10F30451D4EBE954F6950B06CF57"><enum>(d)</enum><text>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.</text></subsection>
<subsection id="HC5485D7068C447B3A3002C0159E26009"><enum>(e)</enum><text>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.</text></subsection>
<subsection id="H8489556BB5644664B43FEF4E009FE802"><enum>(f)</enum><text>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.</text></subsection></section>
<section id="H924975952D2E45FD8D16952938B80300"><enum>104.</enum><header>Public education</header>
<subsection id="HA12DED400A6148B591011BBAD0652AA"><enum>(a)</enum><text>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.</text></subsection>
<subsection id="H56CEF377A124464CA9B9CE9CF1000561"><enum>(b)</enum><text>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.</text>
<paragraph id="HF7DD6F02194148DE9452E655E46ED462"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph id="H8E36A7F85FFC4D348871F3D78CA6CC76"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="H190456E848A34FE4B2970118D989A3E1"><enum>(c)</enum><text>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—</text>
<paragraph id="HEB219B96243145338C09AE4267FDF046"><enum>(1)</enum><text>contain information regarding the health risks associated with exposure to indoor mold growth;</text></paragraph>
<paragraph id="H52A7BEBAC0F24F56AF87204FF4003BB2"><enum>(2)</enum><text>provide information on the hazards of indoor mold growth in federally assisted and federally owned housing;</text></paragraph>
<paragraph id="H974185C5DA0340BC97301B0046944F20"><enum>(3)</enum><text>describe the risks of mold exposure for persons residing in a dwelling with toxic mold;</text></paragraph>
<paragraph id="H24A2167D82D243F1A1E527CB57BD4F8F"><enum>(4)</enum><text>provide information on approved methods for evaluating and reducing mold growth and their effectiveness in identifying, reducing, eliminating, or preventing mold growth;</text></paragraph>
<paragraph id="H61BCC024D1B3411F805BAE39E8D80B8"><enum>(5)</enum><text>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;</text></paragraph>
<paragraph id="H304D717B49064AEF85EC10C2EE9FB0B"><enum>(6)</enum><text>state that a risk assessment or inspection for mold growth is recommended prior to the purchase, lease, or renovation of target housing;</text></paragraph>
<paragraph id="HE4AF5E90F1D049B7ABF291E6F11B707E"><enum>(7)</enum><text>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</text></paragraph>
<paragraph id="H3EDF61CB769C4943B52CD555C1E5EC00"><enum>(8)</enum><text>provide information deemed appropriate and/or necessary to promote awareness of the hazards posed by indoor mold.</text></paragraph></subsection>
<subsection id="H63F0D77EAA0344DDB599EEF3DA8B7000"><enum>(d)</enum><text>There is authorized to be appropriated such sums as may be necessary to carry out this section.</text></subsection></section>
<enum>II</enum><header>Housing provisions for indoor mold hazard prevention and detection</header>
<section id="H6314A0AFC2144AD4B1BC99C9DB4022B7"><enum>201.</enum><header>Inspections of residential property</header><text display-inline="no-display-inline">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.</text></section>
<section id="H329714C709714B5A8526BDE560222F1D"><enum>202.</enum><header>Sale or lease of residential property</header>
<subsection id="HAB3C12C2762D41EFB85374E629F1F8E"><enum>(a)</enum><text>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.</text></subsection>
<subsection id="H700365B3A3BE4CD0BCF0834E38F5B545"><enum>(b)</enum><text>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.</text></subsection>
<subsection id="H8B0EC43212E04982A2AB94F412229640"><enum>(c)</enum><text>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).</text></subsection>
<subsection id="HFAD41863317C48629719388352B8A52D"><enum>(d)</enum>
<paragraph display-inline="yes-display-inline" id="H7C419F8F2D524D82000722D6EB49F6A"><enum>(1)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/3545">42 U.S.C. 3545</external-xref>).</text></paragraph>
<paragraph indent="up1" id="H9B811443DA3D41A598DCA709CA428445"><enum>(2)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="HACECB034BE3B47468900D8B674D0C773"><enum>(3)</enum><text>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.</text></paragraph></subsection>
<subsection id="H5F0CF0467A4C4BCAA736A8FD064F9E62"><enum>(e)</enum><text>The regulations under this section shall take effect 3 years after the date of the enactment of this Act.</text></subsection></section>
<section id="HC8A55BA266E84670B1009B29CA7B60F9"><enum>203.</enum><header>Inspection requirements for existing public housing</header>
<subsection id="H12E050BC71084ACC81A8F5565D01D042"><enum>(a)</enum><header>In general</header><text>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.</text></subsection>
<subsection id="H8D687CAFD0DD41A5A71099DC21DEB852"><enum>(b)</enum><header>Procedures</header><text>At a minimum, such procedures shall require—</text>
<paragraph id="H88C7D3B205E9454581B1867DBF59556D"><enum>(1)</enum><text>the provision of indoor mold hazard information pamphlets to tenants;</text></paragraph>
<paragraph id="HC6524EA60CC94303A4A60624B6391FA0"><enum>(2)</enum><text>periodic risk assessments and interim controls in accordance with a schedule determined by the Secretary;</text></paragraph>
<paragraph id="H711B32DB72A44A9584CAE36893BFA5FE"><enum>(3)</enum><text>mold inspections;</text></paragraph>
<paragraph id="HBDFC6849FA164646B5A05C7314FE3B4E"><enum>(4)</enum><text>abatement of indoor mold hazards identified;</text></paragraph>
<paragraph id="HFFDF0839EA894C6CB04400ACEBC5A579"><enum>(5)</enum><text>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</text></paragraph>
<paragraph id="H50BE4B54EDAC475A8C7BCE17A7BE75D"><enum>(6)</enum><text>such other measures as the Secretary deems appropriate.</text></paragraph></subsection>
<subsection id="H0831D4A22498420398E4ABC8DC14E935"><enum>(c)</enum><header>Transitional testing and abatement</header>
<paragraph id="HB69A29F1E1724414BD98470352EB2CE"><enum>(1)</enum><header>Public housing receiving Capital Fund assistance</header><text>The inspection required under this section for public housing assisted with amounts from the Capital Fund under section 9(d) of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1437g">42 U.S.C. 1437g(d)</external-xref>) shall be conducted with respect to—</text>
<subparagraph id="HE59A48352FB74A429C5D3BF32F56834"><enum>(A)</enum><text>a random sample of dwellings and common areas in all public housing projects assisted under such section; and</text></subparagraph>
<subparagraph id="HA02EF6F7EDAB48D698F147B803FB251F"><enum>(B)</enum><text>each dwelling in any public housing project in which there is a dwelling determined under subparagraph (A) to have indoor mold hazards.</text></subparagraph></paragraph>
<paragraph id="H73B4FFCF2CB841B7BECD637B939F1E05"><enum>(2)</enum><header>Inspection</header><text>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.</text></paragraph></subsection>
<subsection id="H6B8F14929DBA4825A9E85BD15B09ACEE"><enum>(d)</enum><header>Schedule</header><text>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.</text></subsection>
<subsection id="H9A6891905CC44E7E8EC0B6271E8B43E5"><enum>(e)</enum><header>Report</header><text>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.</text></subsection>
<subsection id="H03D84BFF2A3D48F28B29C095AAC617B3"><enum>(f)</enum><header>Funding</header><text>The Secretary shall use amounts available under the Capital Fund under section 9(d) of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> 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.</text></subsection></section>
<section id="H527D882E2DCC4381B6DD171E9745D00"><enum>204.</enum><header>Construction requirements for new public housing</header><text display-inline="no-display-inline">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.</text></section>
<section id="H70A90E1725114500B08434B43C913C58"><enum>205.</enum><header>Building codes</header>
<subsection id="H64A7C2D4438F466FBE9FE6C197DACE95"><enum>(a)</enum><header>In general</header><text>The Secretary of Housing and Urban Development shall develop model construction standards and techniques for preventing and controlling mold within new buildings.</text></subsection>
<subsection id="HBE17A3C3768A4A10A546438CBB328EE"><enum>(b)</enum><header>Contents</header><text>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.</text></subsection>
<subsection id="H20D719C177594245975E131CEFE63E00"><enum>(c)</enum><header>Development and publication</header><text>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.</text></subsection></section>
<section id="H89B6136336AF423783E9BE16C9C7441"><enum>206.</enum><header>Inspection requirement in connection with federally made or insured mortgages</header>
<subsection id="H6861513E276E490BB097F009F49B3E97"><enum>(a)</enum><header>In general</header><text>After December 31, 2006, no Federal agency (as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/5/551">section 551</external-xref> of title 5, United States Code) may make, insure, or guarantee a mortgage or loan for purchase or lease of residential real property unless—</text>
<paragraph id="HD0D42D671EEC414184AA1692B961EB64"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="H51A1977A59EF4259BD759E031216F993"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="H1F74FF5954314053AAB97CBD31B506ED"><enum>(b)</enum><header>Regulations</header><text>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.</text></subsection></section>
<enum>III</enum><header>Industry Standards Development</header>
<section id="H039C7580898B4DB6A6188EA602EC83DB"><enum>301.</enum><header>Industry standards development</header>
<subsection id="H0516D634D7444C7DB375C71019E778AA"><enum>(a)</enum><header>Definitions</header><text>Section 2 of the National Cooperative Research and Production Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/15/4301">15 U.S.C. 4301</external-xref>) is amended—</text>
<paragraph id="HC92E8B6406DC4D1EA7D86C69A2D205C6"><enum>(1)</enum><text>in subsection (a) by adding at the end the following:</text>
<quoted-block id="HFE40FE0E317D4DACB6E371CB419BC045">
<paragraph id="H4414E49F94064A99A6BA032EDA74DAAA"><enum>(7)</enum><text>The term <term>standards development activity</term> 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.</text></paragraph>
<paragraph id="H1ADC91EAA42E49DB9C2C82DE1031726F"><enum>(8)</enum><text>The term <term>standards development organization</term> has the same meaning as the terms <term>voluntary consensus standards body</term> and <term>voluntary, private sector consensus standards body</term> 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.</text></paragraph>
<paragraph id="HBAF72241A1D24019A385ED7C16365B24"><enum>(9)</enum><text>The term ‘technical standard</text></paragraph><after-quoted-block>has the meaning given such term in section 12(d)(4) of the National Technology Transfer and Advancement Act of 1995.</after-quoted-block></quoted-block>
<quoted-block id="HF1B6C8C4829F4A6394356DDDA86D8FD9">
<paragraph id="HE48859FE702F46F280031131E94EC953"><enum>(10)</enum><text>The term <term>voluntary consensus standard</term> has the meaning given such term in Circular Number A–119, as revised February 10, 1998, of the Office of Management and Budget.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE10702F6996F4E36BF9CA5FB7E5676B3"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block id="HD9532BEF5CA24E2081FDEA11FE222D7B">
<subsection id="HD5E0D1C240B9431296315C27AC15C07E"><enum>(c)</enum><text>The term <term>standards development activity</term> excludes the following activities:</text>
<paragraph id="H9DA7559CFC0D4D458CDF1CB43EF41422"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph id="HE36C4BD48EE24CBCB2E75DA66CA9CE95"><enum>(2)</enum><text>Entering into any agreement or engaging in any other conduct that would allocate a market with a competitor.</text></paragraph>
<paragraph id="H7069D45CFF5B41388939007CE0F03CDA"><enum>(3)</enum><text>Entering into any agreement or conspiracy that would set or restrain prices of any good or service.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H07B3AF4CED024285A5518DA79378B91C"><enum>(b)</enum><header>Rule of reason standard</header><text>Section 3 of the National Cooperative Research and Production Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/15/4302">15 U.S.C. 4302</external-xref>) is amended by striking <quote>of any person in making or performing a contract to carry out a joint venture shall</quote> and inserting the following:</text>
<quoted-block id="H80CEB18F401C45E4986EAFD996DF33D6"><text display-inline="no-display-inline">of—</text>
<paragraph id="HDDA0F3A4FA594FBFA58BAB26E8A9FF74"><enum>(1)</enum><text>any person in making or performing a contract to carry out a joint venture, or</text></paragraph>
<paragraph id="HD70EF358AE6A467E9F8600CA7F00FDD8"><enum>(2)</enum><text>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</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4BD331DD20284C32BC95841700EFAC91"><enum>(c)</enum><header>Limitation on recovery</header><text>Section 4 of the National Cooperative Research and Production Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/15/4303">15 U.S.C. 4303</external-xref>) is amended—</text>
<paragraph id="H25DED35FE99E4C93A02B40A560736C95"><enum>(1)</enum><text>in subsections (a)(1), (b)(1), and (c)(1) by inserting <quote>, for a standards development activity engaged in by standards development organization against which such claim is made</quote> after <quote>joint venture</quote>, and</text></paragraph>
<paragraph id="H31EE0C61FF2C405E9F3917972210769C"><enum>(2)</enum><text>in subsection (e)—</text>
<subparagraph id="HD254E2717B774FBD9CA888EAEC40F1BE"><enum>(A)</enum><text>by inserting <quote>, or of a standards development activity engaged in by a standards development organization</quote> before the period at the end, and</text></subparagraph>
<subparagraph id="HDC062B5752E14B8EAFC3C117399EE99C"><enum>(B)</enum><text>by redesignating such subsection as subsection (f), and</text></subparagraph></paragraph>
<paragraph id="H59BF4D04C3044906BD266E76F84FC1B6"><enum>(3)</enum><text>by inserting after subsection (d) the following:</text>
<quoted-block id="H742708698888493AB6290412F0F5924F">
<subsection id="H6CF3A360976545B89B583F3E2B9B0031"><enum>(e)</enum><text>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—</text>
<paragraph id="H6960F042A73C482AB13648CD87CDED94"><enum>(1)</enum><text>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,</text></paragraph>
<paragraph id="H76BB43208AD94E248E8148D3A69333E"><enum>(2)</enum><text>is not a full-time employee of the standards development organization that engaged in such activity, and</text></paragraph>
<paragraph id="HFA24A561AA424F9FB9786FA3B1295739"><enum>(3)</enum><text>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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H90B5F63EF0C24A81B90013B71BEB63D0"><enum>(d)</enum><header>Attorney fees</header><text>Section 5 of the National Cooperative Research and Production Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/15/4304">15 U.S.C. 4304</external-xref>) is amended—</text>
<paragraph id="HB180960042314C0900EEDB73B09D7F9D"><enum>(1)</enum><text>in subsection (a) by inserting <quote>, 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)</quote> after <quote>joint venture</quote>, and</text></paragraph>
<paragraph id="H470323DE75814D868FAF651113389B1"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block id="H9527C1D367E54CD5BF91994F6E009F48">
<subsection id="H7C5909A1898E4E77A410EB56ADB1B0F9"><enum>(c)</enum><text>Subsections (a) and (b) shall not apply with respect to any person who—</text>
<paragraph id="HCCDEEB93DFFF414782C78C01993A5FB"><enum>(1)</enum><text>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,</text></paragraph>
<paragraph id="HF99B8289927D4EBAAE22A3F471735FCC"><enum>(2)</enum><text>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</text></paragraph>
<paragraph id="H0164BD5631574F9C8EFCBA6E18C353F7"><enum>(3)</enum><text>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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HD4A9368D63584B17A09FA94CE095FE3"><enum>(e)</enum><header>Disclosure of standards development activity</header><text>Section 6 of the National Cooperative Research and Production Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/15/4305">15 U.S.C. 4305</external-xref>) is amended—</text>
<paragraph id="H89E134844F5544AEB3BEA837D3B3FEC0"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="HB4F022593020430ABFB7EBB009EC854B"><enum>(A)</enum><text>by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively,</text></subparagraph>
<subparagraph id="HCFFA8D526E6D4426B3E6E7DDF08E5096"><enum>(B)</enum><text>by inserting <quote>(1)</quote> after <quote>(a)</quote>, and</text></subparagraph>
<subparagraph id="H027322E9C9F14CD9811348EE274D7F00"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block id="HAC7F567AF4764D5381EF11885F13028E">
<paragraph indent="up1" id="HB131928D78CE4253B10098F83F08B876"><enum>(2)</enum><text>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—</text>
<subparagraph id="H8C8A569A97F64CDFBA055494EEF7EB5F"><enum>(A)</enum><text>the name and principal place of business of the standards development organization, and</text></subparagraph>
<subparagraph id="HB7B3B94E768E420E9E5EB5F355DE3DD6"><enum>(B)</enum><text>documents showing the nature and scope of such activity.</text><continuation-text continuation-text-level="section">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.</continuation-text></subparagraph></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HE2C924C6895D44908175F2FB747B4EEA"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="H14A949B3F6464E0F80BE46BF175887C"><enum>(A)</enum><text>in the 1st sentence by inserting <quote>, 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</quote> before the period at the end, and</text></subparagraph>
<subparagraph id="HB6BD21A1FFA240DA00DB310708E59E84"><enum>(B)</enum><text>in the last sentence by inserting <quote>or available to such organization, as the case may be</quote> before the period,</text></subparagraph></paragraph>
<paragraph id="HA95DF7EBDB98493DB9BD00A57473FABE"><enum>(3)</enum><text>in subsection (d)(2) by inserting <quote>, or the standards development activity,</quote> after <quote>venture</quote>,</text></paragraph>
<paragraph id="HD48E9D6B03894DA98D0609A635D9483B"><enum>(4)</enum><text>in subsection (e)—</text>
<subparagraph id="H08317BF05E654BBFA9B345B294804957"><enum>(A)</enum><text>by striking <quote>person who</quote> and inserting <quote>person or standards development organization that</quote>, and</text></subparagraph>
<subparagraph id="HB3B3FF5AE9E7457D00A993BC6F98B4D4"><enum>(B)</enum><text>by inserting <quote>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)</quote> after <quote>person</quote> the last place it appears, and</text></subparagraph></paragraph>
<paragraph id="HAB599EF21BF944598BABDBEF1B3CA324"><enum>(5)</enum><text>in subsection (g)(1) by inserting <quote>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)</quote> after <quote>person</quote>.</text></paragraph></subsection></section>
<enum>IV</enum><header>Indoor mold hazard assistance</header>
<section id="H526EA7393B2A4F269B00377562B0CFF1"><enum>401.</enum><header>Grants for remediation of public buildings and severely impacted homes</header>
<subsection id="H639F0438617D4AF584A5C8190012B8F2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator of the Environmental Protection Agency shall make grants available to State and local governments to cover—</text>
<paragraph id="H9F3D0E6EC99049B8B43227217533F776" display-inline="no-display-inline"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="H647D6B89EAC545088B135FB8238DA481"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="H0C942E6067F647DE977B2254B9FE423D"><enum>(b)</enum><header>Use of funds</header><text>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.</text></subsection></section>
<enum>V</enum><header>Tax provisions</header>
<section id="HA8D2EB2027684A099685245C229605D8"><enum>501.</enum><header>Tax credit for toxic mold inspection and remediation</header>
<subsection id="H5458982A25B74EAE9EC0E5DC9CE85EE9"><enum>(a)</enum><header>In general</header><text>Subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:</text>
<quoted-block id="H032D97407F814CFD85CC134DBC85056">
<section id="H2B49791C073847B2991100FDFE4DA300"><enum>30B.</enum><header>Credit for mold inspection and remediation</header>
<subsection id="HF603FB6C3EA84FD4B8A34FD2EC307D70"><enum>(a)</enum><header>General rule</header><text>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.</text></subsection>
<subsection id="HDD20E39D6CAE45F480009FCD63B92604"><enum>(b)</enum><header>Limitation</header><text>The amount of the credit allowed under subsection (a) for any taxable year shall not exceed $50,000.</text></subsection>
<subsection id="H016DF7AFD5BD460FBA6DD8DE40F89760"><enum>(c)</enum><header>Mold inspection and remediation expenses</header><text>For purposes of this section, the term <term>mold inspection and remediation expenses</term> means expenses paid or incurred by the taxpayer (and not reimbursed by insurance or otherwise) to carry out—</text>
<paragraph id="H9BD8C230D1464BD99C9FF6B84400A003"><enum>(1)</enum><text>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,</text></paragraph>
<paragraph id="HA848FF9FC8294874005FBDE1214D26B"><enum>(2)</enum><text>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</text></paragraph>
<paragraph id="H1DA5D9C71B384171B0E2377142AA7FA1"><enum>(3)</enum><text>a remediation of mold growth in housing or any other building.</text></paragraph></subsection>
<subsection id="H33402513D06F42AAAD15C7CBC0C20035"><enum>(d)</enum><header>Denial of double benefit</header><text>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.</text></subsection>
<subsection id="HD15A49370C3648F4B6C0FB2306EB6BFF"><enum>(e)</enum><header>Certain rules made applicable</header><text>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.</text></subsection>
<subsection id="HD4634BCAFC1349E5BF1E0625B096D689"><enum>(f)</enum><header>Application with other credits</header><text>The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of—</text>
<paragraph id="HD44860B3C81541E6801C6C961C5CD443"><enum>(1)</enum><text display-inline="yes-display-inline">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</text></paragraph>
<paragraph id="HE6D6471D8CF74418868170333093ED10"><enum>(2)</enum><text>the tentative minimum tax for the taxable year.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6D7174AC42BB49939533764BE791DB07"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text>
<quoted-block style="USC" id="HD4C3327C5EEF44BEB2F3C200E9D454EB">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30B. Credit for mold inspection and remediation</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA209A251269542ABA23EACF387ADEA2"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2006.</text></subsection></section>
<enum>VI</enum><header>National toxic mold hazard insurance program</header>
<subtitle id="HD6BF2FA7034C423E859B7C041EBFE05"><enum>A</enum><header>Insurance Program</header>
<section id="HAFA5D30D66C741A0B06136344CF8A8B4"><enum>601.</enum><header>Program authority</header>
<subsection id="H15C47F4874004AB9003BA00D928A550"><enum>(a)</enum><header>In general</header><text>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.</text></subsection>
<subsection id="H9D8580AB000645E0A65114D5D2229248"><enum>(b)</enum><header>Participation</header><text>In carrying out the toxic mold hazard insurance program under this title, the Director shall, to the maximum extent practicable, encourage and arrange for—</text>
<paragraph id="HFE08DB6846F140B5B623D28D40049DEE"><enum>(1)</enum><text>appropriate financial participation and risk sharing in the program by insurance companies and other insurers; and</text></paragraph>
<paragraph id="HE0FC8E85FE1D44A8BF24A400D130905C"><enum>(2)</enum><text>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.</text></paragraph></subsection></section>
<section id="HF95859C8522A42FCAAABA17FEB6CD577"><enum>602.</enum><header>Scope of program and priorities</header>
<subsection id="HC5A5E71327504F6799914E677C4D6210"><enum>(a)</enum><header>Priority of program scope</header><text>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.</text></subsection>
<subsection id="H361074D91B68474A008BCB8D9B3D0039"><enum>(b)</enum><header>Additional scope</header><text>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—</text>
<paragraph id="HE44F2A1B7CD94C90832CCB2FBD2B1DAF"><enum>(1)</enum><text>other residential properties;</text></paragraph>
<paragraph id="H468E0E85A46543FFA4B34FBEAA356C08"><enum>(2)</enum><text>church properties, and business properties which are owned or leased and operated by small business concerns;</text></paragraph>
<paragraph id="H6700CBC58E8A42CFBB779266F00DD42"><enum>(3)</enum><text>other business properties;</text></paragraph>
<paragraph id="H9501F875583546489364227C04F36C7E"><enum>(4)</enum><text>properties occupied by private nonprofit organizations; and</text></paragraph>
<paragraph id="HD38B406398274F71811D236BACC1A1DA"><enum>(5)</enum><text>properties owned by State and local governments and agencies thereof;</text></paragraph><continuation-text continuation-text-level="subsection">and any such extensions of the program to any types and classes of these properties shall from time to time be prescribed in regulations.</continuation-text></subsection></section>
<section id="H6068141B9CD940F5B868AC0061C63945"><enum>603.</enum><header>Nature and limitation of insurance coverage</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H31E04BD17BF145AE8889C68E5780FB33"><enum>(1)</enum><text>the types, classes, and locations of any such properties which shall be eligible for such insurance;</text></paragraph>
<paragraph id="H30F72701915C4E96B89D997F009F8E6B"><enum>(2)</enum><text>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;</text></paragraph>
<paragraph id="H581DAD171E16497BBC3DF9F82B8BD89C"><enum>(3)</enum><text>the classification, limitation, and rejection of any risks that may be appropriate;</text></paragraph>
<paragraph id="H949C2FBFDA8B4688B97D37D900831730"><enum>(4)</enum><text>appropriate minimum premiums;</text></paragraph>
<paragraph id="H775C163317444D2FBAA694F91CF13E54"><enum>(5)</enum><text>appropriate loss-deductibles;</text></paragraph>
<paragraph id="H23E26312F122418FAA233532AE93843D"><enum>(6)</enum><text>appropriate limits on aggregate liability under such coverage, based on the type of property insured; and</text></paragraph>
<paragraph id="H675436C7776343AAA727CC2388D16D21"><enum>(7)</enum><text>any other terms and conditions relating to insurance coverage or exclusion which may be necessary to carry out the purposes of this title.</text></paragraph></section>
<section id="HC819723F311848D38C8012ED3F59545B"><enum>604.</enum><header>Estimates of premium rates</header><text display-inline="no-display-inline">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:</text>
<paragraph id="HF847DF215C024F348F737DB84FA4C4F"><enum>(1)</enum><header>Actuarial rates</header><text>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—</text>
<subparagraph id="HC3A3440FAE6E47298C3B4D5D066F8EE2"><enum>(A)</enum><text>are based on consideration of the risk involved and accepted actuarial principles;</text></subparagraph>
<subparagraph id="H973857E81A0E4D2BA8DA4CAC193AF8C"><enum>(B)</enum><text>include the applicable operating costs and allowances set forth in the schedules prescribed under section 607 and reflected in such rates; and</text></subparagraph>
<subparagraph id="H0D77185D77884E2C870087348E777C5E"><enum>(C)</enum><text>include any administrative expenses of carrying out the insurance program under this title.</text></subparagraph></paragraph>
<paragraph id="H2AF0398BCB2A4A17A469C3532CE7C503"><enum>(2)</enum><header>Subsidized rates</header><text>The risk premium rates that—</text>
<subparagraph id="H846679844DCE48BA9DD9700045E5DF72"><enum>(A)</enum><text>are less than the rates estimated under paragraph (1);</text></subparagraph>
<subparagraph id="H23E1F553A3D940FF94E408A9D3286EFD"><enum>(B)</enum><text>would be reasonable;</text></subparagraph>
<subparagraph id="H64C4E582D079450EBB228D3F17E64502"><enum>(C)</enum><text>would encourage prospective insureds to purchase toxic mold hazard insurance coverage;</text></subparagraph>
<subparagraph id="H00A3A06893794231B720D65CFFDE86AB"><enum>(D)</enum><text>would be consistent with the purposes of this title; and</text></subparagraph>
<subparagraph id="HBD0839FFDB24405CB45C9F6695AD749C"><enum>(E)</enum><text>include any administrative expenses incurred in carrying out the insurance program under this title.</text></subparagraph></paragraph></section>
<section id="H8113F077EE404E4B9784F65512157B03"><enum>605.</enum><header>Establishment of chargeable premium rates</header>
<subsection id="HCF112EC9D7C54B68A97E9C13A8439675"><enum>(a)</enum><header>In general</header><text>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—</text>
<paragraph id="HFD9B45EE8E144B938F82985906112447"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="HD3D2EE9D460044A9896D4BC21444A3AD"><enum>(2)</enum><text>the terms and conditions under which, and the areas within which, such rates shall apply.</text></paragraph></subsection>
<subsection id="H47AC6908FFDA4EBFA6EF16B81FC9B534"><enum>(b)</enum><header>Factors</header><text>Such rates shall, insofar as practicable, be—</text>
<paragraph id="HEBC3D117421A4BD1BBC54C03D04CE519"><enum>(1)</enum><text>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;</text></paragraph>
<paragraph id="HBF37B8DC860A4206A124FFBEC7E5B00"><enum>(2)</enum>
<subparagraph display-inline="yes-display-inline" id="H9AD9065323BF49B885CCA2673F957186"><enum>(A)</enum><text>adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses; or</text></subparagraph>
<subparagraph indent="up1" id="HCB318076454F469994A815571CD3EAC"><enum>(B)</enum><text>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;</text></subparagraph></paragraph>
<paragraph id="HD0C5E29E39464693A89C9CE6ED35A5B3"><enum>(3)</enum><text>adequate to provide for any administrative expenses of the insurance programs under this title; and</text></paragraph>
<paragraph id="HF9AA7D4DC13B46FE9000D4F001449F7"><enum>(4)</enum><text>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).</text></paragraph></subsection>
<subsection id="HB7B618CEFF5A4E3C84F16583C83CA832"><enum>(c)</enum><header>Full actuarial rates for communities not in compliance with building inspection, certificate of occupancy, and public disclosure provisions</header><text>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.</text></subsection>
<subsection id="HD5DA29B3E996460FB02BD88B6E947D00"><enum>(d)</enum><header>Annual limitation on premium increases</header><text>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.</text></subsection>
<subsection id="H3B5C8C03469C4CB3A6F5E937251ECCF1"><enum>(e)</enum><header>$200 maximum premium for single family dwellings</header><text>The chargeable risk premium rate for toxic mold hazard insurance under this title for a single family dwelling shall be affordable and reasonably priced.</text></subsection></section>
<section id="H141599BBED024130A6E5E500C9D77AC"><enum>606.</enum><header>National Toxic Mold Hazard Insurance Fund</header>
<subsection id="H45BD0B7EC7D94AEA848F8D19D2318604"><enum>(a)</enum><header>Establishment and uses</header><text>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)—</text>
<paragraph id="H2A2804CAB160482AA7BD50B0A4FD0071"><enum>(1)</enum><text>for making such payments as may, from time to time, be required under section 634;</text></paragraph>
<paragraph id="H1F4883F564894B53A077839701C3B7B"><enum>(2)</enum><text>to repay to the Secretary of the Treasury such sums as may be borrowed (together with interest) pursuant to subsection (e);</text></paragraph>
<paragraph id="H0A6E3358E3164201BF43133D7C1624DB"><enum>(3)</enum><text>to the extent approved in appropriation Acts, to pay any administrative expenses of the toxic mold hazard insurance program; and</text></paragraph>
<paragraph id="H457F5D17B8BA4ECF983C45598CAC36A"><enum>(4)</enum><text>for the purposes specified in subsection (d) under the conditions provided therein.</text></paragraph></subsection>
<subsection id="H25F4302323F042BFA6DDCFF992EA889"><enum>(b)</enum><header>Credits</header><text>The Fund shall be credited with—</text>
<paragraph id="HA4C8EF56667D46A181805910015C67A9"><enum>(1)</enum><text>any amounts borrowed under subsection (e);</text></paragraph>
<paragraph id="H8806AD61BDF94EA7A9CFF612F40812F5"><enum>(2)</enum><text>any amounts as may be appropriated for the Fund;</text></paragraph>
<paragraph id="H04B067B7F800467E83CC58AEA7EA0233"><enum>(3)</enum><text>interest which may be earned on investments of the Fund pursuant to subsection (c);</text></paragraph>
<paragraph id="H7D40CF768490424D9199C0FCF4B34718"><enum>(4)</enum><text>receipts from any other operations under this title (including premiums under the conditions specified in subsection (d)); and</text></paragraph>
<paragraph id="H427BB2FDC35042288F000020D1A2EE01"><enum>(5)</enum><text>such other amounts as may be credited to the Fund.</text></paragraph></subsection>
<subsection id="H07E0C51DE40E410FAE1864B5B7ABCCA6"><enum>(c)</enum><header>Investment</header><text>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.</text></subsection>
<subsection id="H6F0A15A0A0C3433F83007C97B0013142"><enum>(d)</enum><header>Federal operation of program</header><text>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—</text>
<paragraph id="H3794818EB9F34B9DB1A258764652C4E6"><enum>(1)</enum><text>costs incurred in the adjustment and payment of any claims for losses, and</text></paragraph>
<paragraph id="H68D0E66079944CFFA75793BC0025DC5D"><enum>(2)</enum><text>payment of applicable operating costs set forth in the schedules prescribed under section 607,</text></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection>
<subsection id="H1757057EB3364295A94DFEC04DFBCDC"><enum>(e)</enum><header>Borrowing</header>
<paragraph id="HCD9F54C33A4043818EE0030B0FC0097"><enum>(1)</enum><header>Authority</header><text>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.</text></paragraph>
<paragraph id="HEB0A6EFE5CBA4F9FA0246FCAE8A0937E"><enum>(2)</enum><header>Public debt transaction</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> 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.</text></paragraph>
<paragraph id="HA71CDEBC65F8438DA31D8094B7EAFCF0"><enum>(3)</enum><header>Characteristics of obligations</header><text>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.</text></paragraph>
<paragraph id="HA5D91D69402C42A482528E25B96CDDD8"><enum>(4)</enum><header>Treatment</header><text>All redemptions, purchases, and sales by the Secretary of obligations under this subsection shall be treated as public debt transactions of the United States.</text></paragraph></subsection>
<subsection id="HB8733210A6CF479E9DE38FB1AACD7374"><enum>(f)</enum><header>Availability</header><text>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.</text></subsection></section>
<section id="H0E7745EA3047468DBE71F5F2AB8B8DC0"><enum>607.</enum><header>Operating costs and allowances</header>
<subsection id="H5DF33A596A38439BA8C1ACEDD900A3C8"><enum>(a)</enum><header>In general</header><text>The Director shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing—</text>
<paragraph id="H2D6DA9321DFE4FE18DCFDED5408CA6D7"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="H9E75EE34129F48CAB2BC54A623E8C0CE"><enum>(2)</enum><text>a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers,</text></paragraph><continuation-text continuation-text-level="subsection">which may be payable in accordance with the provisions of subtitle B, and such schedules shall from time to time be prescribed in regulations.</continuation-text></subsection>
<subsection id="H52CF1B54B0EA4CACB7F1EBF96E6D94C"><enum>(b)</enum><header>Definitions</header><text>For purposes of subsection (a), the following definitions shall apply:</text>
<paragraph id="HAC68324892C9477B93CA6471F63C3BF8"><enum>(1)</enum><header>Operating allowances</header><text>The term <term>operating allowances</term> includes amounts for profit and contingencies that the Director determines are reasonable and necessary to carry out the purposes of this title.</text></paragraph>
<paragraph id="H549DA5D47BF3449A8297AC813866302D"><enum>(2)</enum><header>Operating costs</header><text>The term <term>operating costs</term> includes—</text>
<subparagraph id="H608245E5AB304008B82845D7D322BB00"><enum>(A)</enum><text>expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing toxic mold hazard insurance coverage;</text></subparagraph>
<subparagraph id="H49378BAB60BE40BD9D1740B9AB30A684"><enum>(B)</enum><text>reasonable compensation payable for selling and servicing such coverage, or commissions or service fees paid to producers;</text></subparagraph>
<subparagraph id="H6103C8B1AD4A4A889DD0D9CBBDCFA8"><enum>(C)</enum><text>loss adjustment expenses; and</text></subparagraph>
<subparagraph id="HF80DC5D5F82F4C8F89D1973B59025817"><enum>(D)</enum><text>other direct, actual, and necessary expenses which the Director finds are incurred in connection with selling or servicing such insurance coverage.</text></subparagraph></paragraph></subsection></section>
<section id="H0E93CE4C039548E0A1F7D81267C3FD6"><enum>608.</enum><header>Payment of claims</header><text display-inline="no-display-inline">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.</text></section>
<section id="HA851D5DABC434E3991116D00C8942ED"><enum>609.</enum><header>Dissemination of insurance information</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H8EDB8EA52005433AA6151B0540ADE5E"><enum>(1)</enum><text>the toxic mold hazard insurance program, its coverage, and objectives; and</text></paragraph>
<paragraph id="HB646723934BF4D088BA38F60ECB3CCCA"><enum>(2)</enum><text>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.</text></paragraph></section>
<section id="H3204AC9F3B3042CD94345CEEB5B60647"><enum>610.</enum><header>Coordination with other programs</header><text display-inline="no-display-inline">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.</text></section>
<section id="HB0A4410F5E6E44A200004D001705008D"><enum>611.</enum><header>Reports</header><text display-inline="no-display-inline">The Director shall annually submit a report of operations under this title to the Congress.</text></section></subtitle>
<subtitle id="HF66356EE946341D9949EA2463E8927DA"><enum>B</enum><header>Organization and Administration of Insurance Program</header>
<section id="H4C0C7CCA013A42E9B47E4EBA76C12EE3"><enum>621.</enum><header>Implementation</header><text display-inline="no-display-inline">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.</text></section>
<part id="H1A64F14E650541DB9258D7457CC1AB03"><enum>1</enum><header>Industry Program With Federal Financial Assistance</header>
<section id="H6AE89B35452249CA9B9219F3E76139E1"><enum>631.</enum><header>Industry insurance pool</header>
<subsection id="H153FB2EB3533433DA6C0FC5E4075E845"><enum>(a)</enum><header>Formation</header><text>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—</text>
<paragraph id="H4DDD509E33CC47BF9C86C972A1D49942"><enum>(1)</enum><text>in order to provide the insurance coverage authorized under subtitle A; and</text></paragraph>
<paragraph id="HC0F80DEDB8264FFBB7E6101BF33D176B"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="HA42B634AB9984DF4B4D1799BB974A1FF"><enum>(b)</enum><header>Requirements</header><text>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.</text></subsection></section>
<section id="H324358ED2EE34625B848AF1000BD01F4"><enum>632.</enum><header>Agreements with insurance pool</header>
<subsection id="H5C68225AACF04562A6DF001E7554568F"><enum>(a)</enum><header>Authority</header><text>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.</text></subsection>
<subsection id="HE5D80283270943C580F6A08D913EEDE"><enum>(b)</enum><header>Contents</header><text>Such agreements shall specify—</text>
<paragraph id="H8766445C2C6C4A869D28159E4B9FC525"><enum>(1)</enum><text>the terms and conditions under which risk capital will be available for the adjustment and payments of claims;</text></paragraph>
<paragraph id="H1A9AAE0DC79F4987966B6DCB9292E31C"><enum>(2)</enum><text>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;</text></paragraph>
<paragraph id="H0AB4694B17EF4A8E95AE87114FDA483B"><enum>(3)</enum><text>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);</text></paragraph>
<paragraph id="H56F2E30946554074877EF5EE00295662"><enum>(4)</enum><text>the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under section 607 may be paid; and</text></paragraph>
<paragraph id="HE4298BFCAEF24DC29CDF72141E023BC"><enum>(5)</enum><text>the terms and conditions under which premium equalization payments under section 634 will be made.</text></paragraph></subsection>
<subsection id="H5938E924EFB442A09B1D345D030813EC"><enum>(c)</enum><header>Participation</header><text>In addition, such agreements shall contain such provisions as the Director finds necessary to ensure that—</text>
<paragraph id="H23D0506A0C294E72BBDEB900D3F1A04D"><enum>(1)</enum><text>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;</text></paragraph>
<paragraph id="H238D9970BBD74CF49914ECFEACD1461B"><enum>(2)</enum><text>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</text></paragraph>
<paragraph id="HA85E4F070331480A97F5FB9EF1F7B8EE"><enum>(3)</enum><text>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.</text></paragraph></subsection></section>
<section id="H1B6BDDB068E742828E572B23F7B5D4A5"><enum>633.</enum><header>Adjustment and payment of claims and judicial review</header><text display-inline="no-display-inline">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.</text></section>
<section id="H7940058D5F2A42C2A206C1D1F14181A3"><enum>634.</enum><header>Premium equalization payments</header>
<subsection id="H2227F9C01DFE453F815E7759B83D9EAB"><enum>(a)</enum><header>Payments</header><text>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.</text></subsection>
<subsection id="HAB11ABB409E14D50BF04AFE69C8FAE26"><enum>(b)</enum><header>Periods and methods</header><text>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.</text></subsection></section>
<section id="H059F0761F39145A29EF39248F3B660D6"><enum>635.</enum><header>Emergency implementation of program</header>
<subsection id="H44E929073024414DB1684DB856020574"><enum>(a)</enum><header>Authority</header><text>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).</text></subsection>
<subsection id="HE3450F1B3E6D46F0801B1F71ECC0008D"><enum>(b)</enum><header>Premium rates and procedures</header><text>In carrying out the toxic mold hazard insurance program pursuant to subsection (a), the Director—</text>
<paragraph id="HD0227AFA6CFF476D9C895356CDBD2364"><enum>(1)</enum><text>shall provide insurance coverage without regard to any estimated risk premium rates which would otherwise be determined under section 604; and</text></paragraph>
<paragraph id="H9682AE7232A34E06A4C0702D1B83346E"><enum>(2)</enum><text>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.</text></paragraph></subsection></section></part>
<part id="H66F75565B77840F08B66235DB6429A4"><enum>2</enum><header>Government Program With Industry Assistance</header>
<section id="H8899FF36C1D44BC9BF2F5F9BEE655CA3"><enum>641.</enum><header>Federal operation of program</header>
<subsection id="H54D3F3D6A82646A4A8D8F99DAF7BA399"><enum>(a)</enum><header>Authority</header><text>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—</text>
<paragraph id="H8E05DF3A13DE4252B9CFBCB7006B43EF"><enum>(1)</enum><text>insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations, as fiscal agents of the United States;</text></paragraph>
<paragraph id="HC7DB544145E64B93B852FF285C62C6B"><enum>(2)</enum><text>such other officers and employees of any executive agency (as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/105">section 105</external-xref> 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</text></paragraph>
<paragraph id="H6EF7FEB98ECC4DBD84683192E60070D7"><enum>(3)</enum><text>both the alternatives specified in paragraphs (1) and (2).</text></paragraph></subsection>
<subsection id="H61FCF480B49743F89D69791721CA9E7B"><enum>(b)</enum><header>Report</header><text>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—</text>
<paragraph id="HC036E8E2D4D04B61B32F04726E217F60"><enum>(1)</enum><text>state the reason for such determinations;</text></paragraph>
<paragraph id="HAAC9E3E176CB4446B62FD2E4391239E6"><enum>(2)</enum><text>include findings that support such determination;</text></paragraph>
<paragraph id="H7A81D44D7383473F8CC260F5AD7CF5C7"><enum>(3)</enum><text>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</text></paragraph>
<paragraph id="H9E61657548BA4C41A958556E14E7232E"><enum>(4)</enum><text>contain such recommendations as the Director considers appropriate.</text></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection></section>
<section id="H8034BFD82F0D43B199E0F78D95A4FB00"><enum>642.</enum><header>Adjustment and payment of claims and judicial review</header><text display-inline="no-display-inline">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.</text></section></part>
<part id="HD2024FD43BD247D6AA4D59D9EC545B5D"><enum>3</enum><header>Provisions of General Applicability</header>
<section id="HDCD8667A541F43A3A35067BD1FF41113"><enum>651.</enum><header>Services by insurance industry</header>
<subsection id="HFD36964491F6456883EE5006EDF189B"><enum>(a)</enum><header>Contracts and agreements</header><text>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.</text></subsection>
<subsection id="H3C12671D75E041A98B8196F594402CB1"><enum>(b)</enum><header>Exemption from competitive bidding requirements</header><text>Any such contracts, agreements, or other arrangements may be entered into without regard to the provisions of section 3709 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>) or any other provisions of law requiring competitive bidding and without regard to the provisions of the <act-name parsable-cite="FACA">Federal Advisory Committee Act</act-name> (5 U.S.C. App.).</text></subsection>
<subsection id="HC708B2B1C02C43DB9C67DA4EC1923384"><enum>(c)</enum><header>Liability</header><text>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.</text></subsection></section>
<section id="HAD2A574112A149CE9DE024E8B5CF5FA"><enum>652.</enum><header>Use of insurance pool, companies, or other private organizations for certain payments</header>
<subsection id="H897AEABCBB01462AA33FB465D73958DD"><enum>(a)</enum><header>Authority</header><text>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:</text>
<paragraph id="HC20CCD55161D4AFAADC2878429DB8F28"><enum>(1)</enum><text>Estimating and later determining any amounts of payments to be made.</text></paragraph>
<paragraph id="H144C019967F3427D81568B7064CD9093"><enum>(2)</enum><text>Receiving from the Director, disbursing, and accounting for funds in making such payments.</text></paragraph>
<paragraph id="HA6DC3E6C34D84288B8442D3E780097E9"><enum>(3)</enum><text>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.</text></paragraph>
<paragraph id="HC4E9160552994DA9B0C2FA8D82387324"><enum>(4)</enum><text>Otherwise assisting in such manner as the contract may provide to further the purposes of this title.</text></paragraph></subsection>
<subsection id="H4F226645B3414487A97756EA46B86800"><enum>(b)</enum><header>Terms and conditions</header><text>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.</text></subsection>
<subsection id="HB8C914A241714CC082CCAADC4196F551"><enum>(c)</enum><header>Exemption from competitive bidding requirements</header><text>Any contract entered into under subsection (a) may be entered into without regard to section 3709 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>) or any other provision of law requiring competitive bidding.</text></subsection>
<subsection id="HB182077EA27B40E8AB17E170DCE82638"><enum>(d)</enum><header>Efficiency and effectiveness</header><text>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.</text></subsection>
<subsection id="H985D3CABCA73484780ACF332BFBFB05"><enum>(e)</enum><header>Certification of payments</header>
<paragraph id="H1718562CC69842188D5714B1819E33A7"><enum>(1)</enum><header>Bonding</header><text>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.</text></paragraph>
<paragraph id="H762C9FA1BB2C4B959DEECBD3F3C24DCE"><enum>(2)</enum><header>Liability</header>
<subparagraph id="H5C3AA59D88464E07BDDEA8C84F35D548"><enum>(A)</enum><text>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.</text></subparagraph>
<subparagraph id="H6370EF88A88D4707B795AB8675B6E75F"><enum>(B)</enum><text>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.</text></subparagraph></paragraph></subsection>
<subsection id="HC9DA91E2B168453999C0A90000E7EA8"><enum>(f)</enum><header>Contract term</header><text>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.</text></subsection></section>
<section id="HFD951E61F4484A95B737C8DC8C2CC550"><enum>653.</enum><header>Settlement and arbitration</header>
<subsection id="HC2211E58118A4C4AA1BD42D2C7F22FFE"><enum>(a)</enum><header>Authority</header><text>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.</text></subsection>
<subsection id="H1728CCF9A8864484846100EC8577F1D"><enum>(b)</enum><header>Arbitration</header><text>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.</text></subsection></section>
<section id="HEA63F8FE5E0E46219917D72985D5C903"><enum>654.</enum><header>Records and audits</header>
<subsection id="H7794BDB6769548C7B0564D9D42A30000"><enum>(a)</enum><header>Maintenance of records</header><text>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.</text></subsection>
<subsection id="HA900BB3A3A98496F9D3807276E4B4986"><enum>(b)</enum><header>Access to records</header><text>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.</text></subsection></section></part></subtitle>
<subtitle id="H34218AFC239140CAB394C938B49B9531"><enum>C</enum><header>Miscellaneous Provisions</header>
<section id="H6AB2802ED6394674893343B604E5DAF0"><enum>661.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following definitions shall apply:</text>
<paragraph id="H45FAF59DEB524395B3D6DE773925A7F8"><enum>(1)</enum><header>Director</header><text>The term <term>Director</term> means the Director of the Federal Emergency Management Agency.</text></paragraph>
<paragraph id="H559850F15C8743ACB7004D226B57DAB0"><enum>(2)</enum><header>Fund</header><text>The term <term>Fund</term> means the National Toxic Mold Hazard Insurance Fund established under section 606.</text></paragraph>
<paragraph id="H96C26EE81B944933A4682B2596AC68D7"><enum>(3)</enum><header>Insurance adjustment organization</header><text>The term <term>insurance adjustment organization</term> 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.</text></paragraph>
<paragraph id="H02F7A10B057C4A3AB257CB5BAA7EF56C"><enum>(4)</enum><header>Insurance company; other insurer; insurance agent or broker</header><text>The terms <term>insurance company</term>, <term>other insurer</term> and <term>insurance agent or broker</term> include any organizations and persons authorized to engage in the insurance business under the laws of any State.</text></paragraph></section>
<section id="HB61543F5E3AC4CD200A81312D67DA2D8"><enum>662.</enum><header>Payments</header><text display-inline="no-display-inline">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.</text></section>
<section id="HEDC6F5B1DBD54959AC20FE08B16EA24B"><enum>663.</enum><header>Government corporation control Act</header><text display-inline="no-display-inline">The provisions of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/91">chapter 91</external-xref> 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.</text></section>
<section id="H7E2879ED8F1A45089DA993ADF62512A0"><enum>664.</enum><header>Finality of certain transactions</header><text display-inline="no-display-inline">Notwithstanding any other provisions of law—</text>
<paragraph id="HAE9579A8D39F4CDD90FE95A3F762357"><enum>(1)</enum><text>any financial transaction authorized to be carried out under this title, and</text></paragraph>
<paragraph id="HF98410BC2E694661A79800CE5F74EB8"><enum>(2)</enum><text>any payment authorized to be made or to be received in connection with any such financial transaction,</text></paragraph><continuation-text continuation-text-level="section">shall be final and conclusive upon all officers of the Government.</continuation-text></section>
<section id="H03176A8F1EE941749D1423B0DA00FC1E"><enum>665.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated such sums as may from time to time be necessary to carry out this title, including amounts—</text>
<paragraph id="H0F0B80F9491F465BB82D95E993394DF"><enum>(1)</enum><text>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;</text></paragraph>
<paragraph id="H7FC1BAE89E084D18AC00E6B08DDE9DC5"><enum>(2)</enum><text>for studies under this title; and</text></paragraph>
<paragraph id="H745506D5B18A4DFB902FFE2EAAB288D5"><enum>(3)</enum><text>to make such other payments as may be necessary to carry out the purposes of this title.</text></paragraph><continuation-text continuation-text-level="section">Any amounts appropriate pursuant to this section shall be available without fiscal year limitation.</continuation-text></section></subtitle>
<enum>VII</enum><header>Health care provisions</header>
<section id="H79A3D5B2D9DF42D19980A6DA28385E4F"><enum>701.</enum><header>Medicaid waiver</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, a State (as defined for purposes of title XIX of the <act-name parsable-cite="SSA">Social Security Act</act-name>) may waive income, resource, and other requirements otherwise applicable under such title in order to provide medical assistance to individuals—</text>
<paragraph id="H5365D02F6382449586E698C9B0DF0197"><enum>(1)</enum><text>whose health has been adversely impacted (as certified by a physician) due to exposure to toxic mold; and</text></paragraph>
<paragraph id="H501E6BB27F8B470185F156466F12EA73"><enum>(2)</enum><text>who do not have any health insurance coverage, or lack adequate health insurance coverage, to treat the physical harm due to toxic mold poisoning.</text></paragraph></section>