[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4973 Reported in House (RH)]







                                                 Union Calendar No. 224
109th CONGRESS
  2d Session
                                H. R. 4973

                          [Report No. 109-410]

   To restore the financial solvency of the national flood insurance 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2006

 Mr. Baker (for himself and Mr. Frank of Massachusetts) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

                             April 6, 2006

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
   To restore the financial solvency of the national flood insurance 
                    program, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Flood Insurance 
Reform and Modernization Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Study regarding status of pre-FIRM properties and mandatory 
                            purchase requirement for natural 100-year 
                            floodplain and non-Federally related loans.
Sec. 4. Phase-in of actuarial rates for nonresidential properties and 
                            non-primary residences.
Sec. 5. Reduction of waiting period for effective date of policies.
Sec. 6. Enforcement.
Sec. 7. Maximum coverage limits.
Sec. 8. Coverage for additional living expenses, basement improvements, 
                            business interruption, and replacement cost 
                            of contents.
Sec. 9. Increase in annual limitation on premium increases.
Sec. 10. Increase in borrowing authority.
Sec. 11. FEMA participation in State disaster claims mediation 
                            programs.
Sec. 12. FEMA reports on financial status of insurance program.
Sec. 13. Extension of pilot program for mitigation of severe repetitive 
                            loss properties.
Sec. 14. Notice of availability of flood insurance and escrow in RESPA 
                            good faith estimate.
Sec. 15. Reiteration of FEMA responsibilities under 2004 Reform Act.
Sec. 16. Updating of flood maps and elevation standards.
Sec. 17. National levee inventory.
Sec. 18. Clarification of replacement cost provisions, forms, and 
                            policy language.
Sec. 19. Authorization of additional FEMA staff.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) flooding has been shown to occur in all 50 States;
            (2) the aggregate amount of the flood insurance claims 
        resulting from Hurricane Katrina, Hurricane Rita, and other 
        recent events has exceeded the aggregate amount of all claims 
        previously paid in the history of the national flood insurance 
        program, requiring a significant increase in the program's 
        borrowing authority;
            (3) flood insurance policyholders have a legitimate 
        expectation that they will receive fair and timely compensation 
        for losses covered under their policies;
            (4) substantial flooding has occurred, and will likely 
        occur again, outside the areas designated by the Federal 
        Emergency Management Agency as flood hazard areas;
            (5) properties located in low- to moderate-risk areas are 
        eligible to purchase flood insurance policies with premiums as 
        low as $112 a year;
            (6) about 450,000 vacation homes, second homes, and 
        commercial properties are subsidized and are not paying 
        actuarially sound rates for flood insurance;
            (7) phasing out subsidies currently extended to vacation 
        homes, second homes, and commercial properties would result in 
        estimated average savings to the taxpayers of the United States 
        and the national flood insurance program of $335,000,000 each 
        year;
            (8) the maximum coverage limits for flood insurance 
        policies should be increased to reflect inflation and the 
        increased cost of housing;
            (9) significant reforms to the national flood insurance 
        program required in the Bunning-Bereuter-Blumenauer Flood 
        Insurance Reform Act of 2004 have yet to be implemented; and
            (10) in addition to reforms required in the Bunning-
        Bereuter-Blumenauer Flood Insurance Reform Act of 2004, the 
        national flood insurance program requires a modernized and 
        updated administrative model to ensure that the program is 
        solvent and the people of the United States have continued 
        access to flood insurance.
    (b) Purposes.--The purposes of this Act are--
            (1) to protect the integrity of the national flood 
        insurance program by fully funding existing legal obligations 
        expected by existing policyholders who have paid policy 
        premiums in return for flood insurance coverage;
            (2) to increase incentives for homeowners and communities 
        to participate in the national flood insurance program and to 
        improve oversight to ensure full participation in the program 
        for owners of properties for which such participation is 
        mandatory; and
            (3) to increase awareness of homeowners of flood risks and 
        improve the quality of information regarding such risks 
        provided to homeowners.

SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROPERTIES AND MANDATORY 
              PURCHASE REQUIREMENT FOR NATURAL 100-YEAR FLOODPLAIN AND 
              NON-FEDERALLY RELATED LOANS.

    (a) In General.--The Comptroller General shall conduct a study as 
follows:
            (1) Pre-firm properties.--The study shall determine the 
        status of the the national flood insurance program, as of the 
        date of the enactment of this Act, with respect to the 
        provision of flood insurance coverage for pre-FIRM properties 
        (as such term is defined in section 578(b) of the National 
        Flood Insurance Reform Act of 1994 (42 U.S.C. 4014 note)), 
        which shall include determinations of--
                    (A) the number of pre-FIRM properties for which 
                coverage is provided and the extent of such coverage;
                    (B) the cost of providing coverage for such pre-
                FIRM properties to the national flood insurance 
                program;
                    (C) the anticipated rate at which such pre-FIRM 
                properties will cease to be covered under the program; 
                and
                    (D) the effects that implementation of the Bunning-
                Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
                will have on the national flood insurance program 
                generally and on coverage of pre-FIRM properties under 
                the program.
            (2) Mandatory purchase requirement for natural 100-year 
        floodplain.--The study shall assess the impact, effectiveness, 
        and feasibility of amending the provisions of the Flood 
        Disaster Protection Act of 1973 regarding the properties that 
        are subject to the mandatory flood insurance coverage purchase 
        requirements under such Act to extend such requirements to 
        properties located in any area that would be designated as an 
        area having special flood hazards but for the existence of a 
        structural flood protection system, and shall determine--
                    (A) the regulatory, financial and economic impacts 
                of extending such mandatory purchase requirements on 
                the costs of homeownership, the actuarial soundness of 
                the national flood insurance program, the Federal 
                Emergency Management Agency, local communities, 
                insurance companies, and local land use;
                    (B) the effectiveness of extending such mandatory 
                purchase requirements in protecting homeowners from 
                financial loss and in protecting the financial 
                soundness of the national flood insurance program; and
                    (C) any impact on lenders of complying with or 
                enforcing such extended mandatory requirements.
            (3) Mandatory purchase requirement for non-federally 
        related loans.--The study shall assess the impact, 
        effectiveness, and feasibility of, and basis under the 
        Constitution of the United States for, amending the provisions 
        of the Flood Disaster Protection Act of 1973 regarding the 
        properties that are subject to the mandatory flood insurance 
        coverage purchase requirements under such Act to extend such 
        requirements to any property that is located in any area having 
        special flood hazards and which secures the repayment of a loan 
        that is not described in paragraph (1), (2), or (3) of section 
        102(b) of such Act, and shall determine how best to administer 
        and enforce such a requirement, taking into consideration other 
        insurance purchase requirements under Federal and State law.
    (b) Report.--The Comptroller General shall submit a report to the 
Congress regarding the results and conclusions of the study under this 
subsection not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act.

SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDENTIAL PROPERTIES AND 
              NON-PRIMARY RESIDENCES.

    (a) In General.--Section 1308(c) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(c)) is amended--
            (1) by redesignating paragraph (2) as paragraph (4); and
            (2) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) Nonresidential properties.--Any nonresidential 
        property.
            ``(3) Non-primary residences.--Any residential property 
        that is not the primary residence of an individual.''.
    (b) Technical Amendments.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Subject only to the limitations provided 
                under paragraphs (1) and (2), the'' and inserting 
                ``The''; and
                    (B) in paragraph (1), by striking ``, except'' and 
                all that follows through ``subsection (e)''; and
            (2) in subsection (e), by striking ``paragraph (2) or (3)'' 
        and inserting ``paragraph (4)''.
    (c) Effective Date and Transition.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall apply beginning on the publication by the 
        Director of the Federal Emergency Management Agency of the 
        certification under section 16(b)(2), except as provided in 
        paragraph (2) of this subsection.
            (2) Transition.--In the case of any property described in 
        paragraph (2) or (3) of section 1308(c) of the National Flood 
        Insurance Act of 1968, as amended by subsection (a) of this 
        section, that, on the date of the enactment of this Act, is 
        covered under a policy for flood insurance made available under 
        the national flood insurance program for which the chargeable 
        premium rates are less than the applicable estimated risk 
        premium rate under section 1307(a)(1) for the area in which the 
        property is located, the Director of the Federal Emergency 
        Management Agency shall increase the chargeable premium rates 
        for such property over time to such applicable estimated risk 
        premium rate under section 1307(a)(1). Such increase shall be 
        made by increasing the chargeable premium rates for the 
        property (after application of any increase in the premium 
        rates otherwise applicable to such property) by 15 percent (or 
        such lesser amount as may be necessary so that the chargeable 
        rate does not exceed such applicable estimated risk premium 
        rate) once during the 12-month period that begins upon the date 
        of the enactment of this Act and once every 12 months 
        thereafter until such increase is accomplished. The provisions 
        of paragraphs (2) and (3) of such section 1308(c) shall apply 
        to such a property upon the accomplishment of such increase and 
        thereafter.

SEC. 5. REDUCTION OF WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.

    Section 1306(c)(1) is amended by striking ``30-day'' and inserting 
``15-day''.

SEC. 6. ENFORCEMENT.

     Section 102(f) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)) is amended--
            (1) in paragraph (5)--
                    (A) in the first sentence, by striking ``$350'' and 
                inserting ``$2,000''; and
                    (B) in the last sentence, by striking ``$100,000'' 
                and inserting ``$1,000,000''; and
            (2) in paragraph (6), by adding after the period at the end 
        the following: ``No penalty may be imposed under this 
        subsection on a regulated lending institution or enterprise 
        that has made a good faith effort to comply with the 
        requirements of the provisions referred to in paragraph (2) or 
        for any non-material violation of such requirements.''.

SEC. 7. MAXIMUM COVERAGE LIMITS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$335,000'';
            (2) in paragraph (3), by striking ``$100,000'' and 
        inserting ``$135,000''; and
            (3) in paragraph (4), by striking ``$500,000'' each place 
        such term appears and inserting ``$670,000''.

SEC. 8. COVERAGE FOR ADDITIONAL LIVING EXPENSES, BASEMENT IMPROVEMENTS, 
              BUSINESS INTERRUPTION, AND REPLACEMENT COST OF CONTENTS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5)--
                    (A) by inserting ``pursuant to paragraph (2), (3), 
                or (4)'' after ``any flood insurance coverage''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) in the case of any residential property, each renewal 
        or new contract for flood insurance coverage shall provide not 
        less than $1,000 aggregate liability per dwelling unit for any 
        necessary increases in living expenses incurred by the insured 
        when losses from a flood make the residence unfit to live in, 
        which coverage shall be available only at chargeable rates that 
        are not less than the estimated premium rates for such coverage 
        determined in accordance with section 1307(a)(1);
            ``(7) in the case of any residential property, optional 
        coverage for additional living expenses described in paragraph 
        (6) shall be made available to every insured upon renewal and 
        every applicant in excess of the limits provided in paragraph 
        (6) in such amounts and at such rates as the Director shall 
        establish, except that such chargeable rates shall not be less 
        than the estimated premium rates for such coverage determined 
        in accordance with section 1307(a)(1);
            ``(8) in the case of any residential property, optional 
        coverage for losses, resulting from floods, to improvements and 
        personal property located in basements, crawl spaces, and other 
        enclosed areas under buildings that are not covered by primary 
        flood insurance coverage under this title, shall be made 
        available to every insured upon renewal and every applicant, 
        except that such coverage shall be made available only at 
        chargeable rates that are not less than the estimated premium 
        rates for such coverage determined in accordance with section 
        1307(a)(1);
            ``(9) in the case of any commercial property, optional 
        coverage for losses resulting from any partial or total 
        interruption of the insured's business caused by damage to, or 
        loss of, such property from a flood shall be made available to 
        every insured upon renewal and every applicant, except that--
                    ``(A) for purposes of such coverage, losses shall 
                be determined based on the profits the covered business 
                would have earned, based on previous financial records, 
                had the flood not occurred; and
                    ``(B) such coverage shall be made available only at 
                chargeable rates that are not less than the estimated 
                premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
            ``(10) in the case of any residential property and any 
        commercial property, optional coverage for the full replacement 
        costs of any contents related to the structure that exceed the 
        limits of coverage otherwise provided in this subsection shall 
        be made available to every insured upon renewal and every 
        applicant, except that such coverage shall be made available 
        only at chargeable rates that are not less than the estimated 
        premium rates for such coverage determined in accordance with 
        section 1307(a)(1).''.

SEC. 9. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.

    Section 1308(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(e)) is amended by striking ``10 percent'' and inserting 
``15 percent''.

SEC. 10. INCREASE IN BORROWING AUTHORITY.

    (a) Borrowing Authority.--The first sentence of subsection (a) of 
section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)), as amended by the National Flood Insurance Program Further 
Enhanced Borrowing Authority Act of 2005 (Public Law 109-106; 119 Stat. 
2288), is amended by striking ``$18,500,000,000'' and inserting 
``$25,000,000,000''.
    (b) FEMA Report.--Not later than the expiration of the 6-month 
period beginning on the date of the enactment of this Act, the Director 
of the Federal Emergency Management Agency shall submit a report to the 
Congress setting forth a plan for repaying any amounts borrowed 
pursuant to increase in borrowing authority authorized under the 
amendments made by subsection (a).

SEC. 11. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1313 (42 U.S.C. 4020) the following new section:

``SEC. 1314. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    ``(a) Requirement to Participate.--In the case of the occurrence of 
a natural catastrophe that may result in flood damage claims under the 
national flood insurance program, upon a request made by the insurance 
commissioner of a State (or such other official responsible for 
regulating the business of insurance in the State) for the 
participation of representatives of the Director in a program sponsored 
by such State for nonbinding mediation of insurance claims resulting 
from a natural catastrophe, the Director shall cause appropriate 
representatives of national flood insurance program to participate in 
such State program to expedite settlement of any flood damage claims 
under the national flood insurance program resulting from such 
catastrophe.
    ``(b) Extent of Participation.--Participation by representatives of 
the Director required under subsection (a) with respect to flood damage 
claims resulting from a natural catastrophe shall include--
            ``(1) providing adjusters certified for purposes of the 
        national flood insurance program who are authorized to settle 
        claims against such program resulting from such catastrophe in 
        amounts up to the limits of policies under such program;
            ``(2) requiring such adjusters to attend State-sponsored 
        mediation meetings regarding flood insurance claims resulting 
        from such catastrophe at times and places as may be arranged by 
        the State;
            ``(3) participating in good-faith negotiations toward the 
        settlement of such claims with policyholders of coverage made 
        available under the national flood insurance program; and
            ``(4) finalizing the settlement of such claims on behalf of 
        the national flood insurance program with such policyholders.
    ``(c) Coordination.--Adjusters representing the national flood 
insurance program who participate pursuant to subsection (b)(1) in a 
State-sponsored mediation program with respect to a natural catastrophe 
shall at all times coordinate their activities with insurance officials 
of the State and representatives of insurers for the purpose of 
consolidating and expediting the settlement of claims under the 
national flood insurance program resulting from such catastrophe at the 
earliest possible time.''.

SEC. 12. FEMA REPORTS ON FINANCIAL STATUS OF INSURANCE PROGRAM.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
            (1) in the section heading, by striking ``REPORT TO THE 
        PRESIDENT'' and inserting ``REPORTS'';
            (2) in subsection (a), by striking ``In General'' and 
        inserting ``Biennial Report to President''; and
            (3) by adding at the end the following new subsection:
    ``(c) Semiannual Reports to Congress on Financial Status.--Not 
later than June 30 and December 31 of each year, the Director shall 
submit a report to the Congress regarding the financial status of the 
national flood insurance program under this title. Each such report 
shall describe the financial status of the National Flood Insurance 
Fund and current and projected levels of claims, premium receipts, 
expenses, and borrowing under the program.''.

SEC. 13. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE 
              LOSS PROPERTIES.

    Section 1361A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4102a) is amended as follows:
            (1) Funding.--In subsection (k)(1), by striking ``and 
        2009'' and inserting ``2009, 2010, and 2011''.
            (2) Termination.--In subsection (l), by striking 
        ``September 30, 2009'' and inserting ``September 30, 2011''.

SEC. 14. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA 
              GOOD FAITH ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
end the following new sentence: ``Each such good faith estimate shall 
include the following conspicuous statements: (1) that flood insurance 
coverage for residential real estate is generally available under the 
National Flood Insurance Program whether or not the real estate is 
located in an area having special flood hazards and that, to obtain 
such coverage, a home owner or purchaser should contact a property 
insurance agent, broker, or company; and (2) that the escrowing of 
flood insurance payments is required for many loans under section 
102(d) of the Flood Disaster Protection Act of 1973, and may be a 
convenient and available option with respect to other loans.''.

SEC. 15. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.

    (a) Appeals Process.--As directed in section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
note), the Director of the Federal Emergency Management Agency is again 
directed to, not later than 90 days after the date of the enactment of 
this Act, establish an appeals process through which holders of a flood 
insurance policy may appeal the decisions, with respect to claims, 
proofs of loss, and loss estimates relating to such flood insurance 
policy as required by such section.
    (b) Minimum Training and Education Requirements.--The Director of 
the Federal Emergency Management Agency is directed to continue to work 
with the insurance industry, State insurance regulators, and other 
interested parties to implement the minimum training and education 
standards for all insurance agents who sell flood insurance policies 
that were established by the Director under the notice published 
September 1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note).
    (c) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Director of the 
Federal Emergency Management Agency shall submit a report to the 
Congress describing the implementation of each provision of the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
Law 108-264) and identifying each regulation, order, notice, and other 
material issued by the Director in implementing each such provision.

SEC. 16. UPDATING OF FLOOD MAPS AND ELEVATION STANDARDS.

    (a) Flood Mapping Program.--Section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at the end 
the following new subsection:
    ``(k) Program to Review, Update, and Maintain Flood Insurance 
Program Maps.--
            ``(1) In general.--The Director, in coordination with the 
        Technical Mapping Advisory Council established pursuant to 
        section 576 of the National Flood Insurance Reform Act of 1994 
        (42 U.S.C. 4101 note) and section 16(c) of the Flood Insurance 
        Reform and Modernization Act of 2006, shall establish a program 
        under which the Director shall review, update, and maintain 
        national flood insurance program rate maps in accordance with 
        this subsection.
            ``(2) Inclusions.--
                    ``(A) Covered areas.--Each map updated under this 
                subsection shall include a depiction of--
                            ``(i) the 500-year floodplain;
                            ``(ii) areas that could be inundated as a 
                        result of the failure of a levee, as determined 
                        by the Director; and
                            ``(iii) areas that could be inundated as a 
                        result of the failure of a dam, as identified 
                        under the National Dam Safety Program Act (33 
                        U.S.C. 467 et seq.).
                    ``(B) Other inclusions.--In updating maps under 
                this subsection, the Director may include--
                            ``(i) any relevant information on coastal 
                        inundation from--
                                    ``(I) an applicable inundation map 
                                of the Corps of Engineers; and
                                    ``(II) data of the National Oceanic 
                                and Atmospheric Administration relating 
                                to storm surge modeling;
                            ``(ii) any relevant information of the 
                        Geographical Service on stream flows, watershed 
                        characteristics, and topography that is useful 
                        in the identification of flood hazard areas, as 
                        determined by the Director; and
                            ``(iii) a description of any hazard that 
                        might impact flooding, including, as determined 
                        by the Director--
                                    ``(I) land subsidence and coastal 
                                erosion areas;
                                    ``(II) sediment flow areas;
                                    ``(III) mud flow areas;
                                    ``(IV) ice jam areas; and
                                    ``(V) areas on coasts and inland 
                                that are subject to the failure of 
                                structural protective works, such as 
                                levees, dams, and floodwalls.
            ``(3) Standards.--In updating and maintaining maps under 
        this subsection, the Director shall establish standards to--
                    ``(A) ensure that maps are adequate for--
                            ``(i) flood risk determinations; and
                            ``(ii) use by State and local governments 
                        in managing development to reduce the risk of 
                        flooding; and
                    ``(B) facilitate the Director, in conjunction with 
                State and local governments, to identify and use 
                consistent methods of data collection and analysis in 
                developing maps for communities with similar flood 
                risks, as determined by the Director.
            ``(4) Hurricanes katrina and rita mapping priority.--In 
        updating and maintaining maps under this subsection, the 
        Director shall--
                    ``(A) give priority to the updating and maintenance 
                of maps of coastal areas affected by Hurricane Katrina 
                or Hurricane Rita to provide guidance with respect to 
                hurricane recovery efforts; and
                    ``(B) use the process of updating and maintaining 
                maps under subparagraph (A) as a model for updating and 
                maintaining other maps.
            ``(5) Annual report.--Not later than June 30 of each year, 
        the Director shall submit a report to the Congress describing, 
        for the preceding 12-month period, the activities of the 
        Director under the program under this section and the reviews 
        and updates of flood insurance program rate maps conducted 
        under the program. Each such annual report shall contain the 
        most recent report of the Technical Mapping Advisory Council 
        pursuant to section 576(c)(3) of the National Flood Insurance 
        Reform Act of 1994 (42 U.S.C. 4101 note).
            ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated to the Director to carry out this subsection 
        $300,000,000 for each of fiscal years 2007 through 2012.''.
    (b) Review and Updating of All Flood Zones and Annual Map 
Modernization Reports.--
            (1) Required revision.--In carrying out the program under 
        subsection (k) of section 1360 of the National Flood Insurance 
        Act of 1968 (as added by subsection (a) of this section), the 
        Director of the Federal Emergency Management Agency shall, as 
        soon as possible after the date of the enactment of this Act, 
        conduct a review of all floodplain areas and flood-risk zones 
        identified, delineated, or established pursuant to such section 
        1360 and shall revise and update all such areas and zones.
            (2) Certification of completion.--Upon completing the 
        review, revision, and updating required under paragraph (1), 
        the Director shall submit to the Congress a report certifying 
        such completion.
            (3) Annual reports.--During the period that ends upon 
        certification under paragraph (2) of this subsection by the 
        Director, the Director shall include in the annual report 
        required under section 1360(k)(5) of the National Flood 
        Insurance Act of 1968 (as added by subsection (a) of this 
        section) a description of the extent to which the review and 
        updating required under paragraph (1) of this subsection has 
        been completed.
    (c) Reestablishment of Technical Mapping Advisory Council.--
            (1) Reestablishment.--There is reestablished the Technical 
        Mapping Advisory Council, in accordance with this subsection 
        and section 576 of the National Flood Insurance Reform Act of 
        1994 (42 U.S.C. 4101 note).
            (2) Membership.--Paragraph (1) of section 576(b) of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended--
                    (A) by redesignating subparagraphs (E), (F), (G), 
                (H), (I), and (J) as subparagraphs (F), (G), (H), (K), 
                (M), and (N), respectively;
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) a representative of the Corps of Engineers of 
                the United States Army;'';
                    (C) by inserting after subparagraph (H) (as so 
                redesignated by subparagraph (A) of this paragraph) the 
                following new subparagraphs:
                    ``(I) a representative of local or regional flood 
                and stormwater agencies;
                    ``(J) a representative of State geographic 
                information coordinators;''; and
                    (D) by inserting after subparagraph (K) (as so 
                redesignated by subparagraph (A) of this paragraph) the 
                following new subparagraph:
                    ``(L) a representative of flood insurance servicing 
                companies;''.
            (3) Appointment.--The Director of the Federal Emergency 
        Management Agency, or the Director's designee, shall take 
        action as soon as possible after the date of the enactment of 
        this Act to appoint the members of the Technical Mapping 
        Advisory Council pursuant to section 576(b)(1) of the National 
        Flood Insurance Reform Act of 1994, as amended by paragraph (2) 
        of this subsection.
            (4) Duties.--Subsection (c) of section 576 of the National 
        Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is 
        amended to read as follows:
    ``(c) Duties.--The Council shall--
            ``(1) make recommendations to the Director for improvements 
        to the flood map modernization program under section 1360(k) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 41010(k));
            ``(2) make recommendations to the Director for maintaining 
        a modernized inventory of flood hazard maps and information; 
        and
            ``(3) submit an annual report to the Director that contains 
        a description of the activities and recommendations of the 
        Council.''.
            (5) Termination.--Subsection (k) of section 576 of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended by striking ``under subsection (b)(1)'' and 
        inserting ``pursuant to subsection (b)(1) of this section and 
        section 16(c)(3) of the Flood Insurance Reform and 
        Modernization Act of 2006''.
    (d) Post-Disaster Flood Elevation Determinations.--Section 1363 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended by 
adding at the end the following new subsection:
    ``(h) Expedited Community Adoption of Post-Disaster Advisory Flood 
Elevations.--If the Director determines that it is appropriate to 
examine flood elevation determinations after flood-related disasters, 
to incorporate data gathered since the publication of an effective 
flood insurance rate map or other flood hazard map and to issue 
advisory flood elevations, the Director shall expedite the notification 
and publication procedures in this section. The Director shall require 
community adoption of the advisory flood elevation information under 
such expedited procedures for the purposes of local land use and 
control measures and for the purposes of facilitating flood-resistant 
reconstruction when Federal funds are made available. Expediting the 
notification and publication procedures shall be accomplished to 
preserve all rights to submit information and to appeal the Director's 
findings.''.

SEC. 17. NATIONAL LEVEE INVENTORY.

    To identify levees for the national flood insurance program, the 
Director of the Federal Emergency Management Agency shall maintain and 
periodically publish an inventory of levees in the United States, and 
shall consult with the Secretary of the Army as necessary to maintain 
such inventory.

SEC. 18. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND 
              POLICY LANGUAGE.

    Not later than the expiration of the 3-month period beginning on 
the date of the enactment of this Act, the Director of the Federal 
Emergency Management Agency shall--
            (1) issue regulations, and revise any materials made 
        available by such Agency, to clarify the applicability of 
        replacement cost coverage under the national flood insurance 
        program;
            (2) revise any regulations, forms, notices, guidance, and 
        publications relating to the full cost of repair or replacement 
        under the replacement cost coverage to more clearly describe 
        such coverage to flood insurance policyholders and information 
        to be provided by such policyholders relating to such coverage, 
        and to avoid providing misleading information to such 
        policyholders; and
            (3) revise the language in standard flood insurance 
        policies under such program regarding rating and coverage 
        descriptions in a manner that is consistent with language used 
        widely in other homeowners and property and casualty insurance 
        policies, including such language regarding classification of 
        buildings, basements, crawl spaces, detached garages, 
        enclosures below elevated buildings, and replacement costs.

SEC. 19. AUTHORIZATION OF ADDITIONAL FEMA STAFF.

    Notwithstanding any other provision of law, the Director of the 
Federal Emergency Management Agency may employ such additional staff of 
such Agency as may be necessary to carry out all of the 
responsibilities of the Director pursuant to this Act and the 
amendments made by this Act. There are authorized to be appropriated to 
Director such sums as may be necessary for costs of employing such 
additional staff.
                                                 Union Calendar No. 224

109th CONGRESS

  2d Session

                               H. R. 4973

                          [Report No. 109-410]

_______________________________________________________________________

                                 A BILL

   To restore the financial solvency of the national flood insurance 
                    program, and for other purposes.

_______________________________________________________________________

                             April 6, 2006

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed