[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3121 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                          May 13, 2008.
    Resolved, That the bill from the House of Representatives (H.R. 
3121) entitled ``An Act to restore the financial solvency of the 
national flood insurance program and to provide for such program to 
make available multiperil coverage for damage resulting from windstorms 
and floods, and for other purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood 
                            Insurance Program.
Sec. 114. Considerations in determining chargeable premium rates.
Sec. 115. Reserve fund.
Sec. 116. Repayment plan for borrowing authority.
Sec. 117. Payment of condominium claims.
Sec. 118. Technical Mapping Advisory Council.
Sec. 119. National Flood Mapping Program.
Sec. 120. Removal of limitation on State contributions for updating 
                            flood maps.
Sec. 121. Coordination.
Sec. 122. Interagency coordination study.
Sec. 123. Nonmandatory participation.
Sec. 124. Notice of flood insurance availability under RESPA.
Sec. 125. Testing of new flood proofing technologies.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform 
                            Act.
Sec. 128. Additional authority of FEMA to collect information on claims 
                            payments.
Sec. 129. Expense reimbursements of insurance companies.
Sec. 130. Extension of pilot program for mitigation of severe 
                            repetitive loss properties.
Sec. 131. Flood insurance advocate.
Sec. 132. Studies and Reports.
Sec. 133. Feasibility study on private reinsurance.
Sec. 134. Policy disclosures.
Sec. 135. Report on inclusion of building codes in floodplain 
                            management criteria.

    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the Commission.
Sec. 206. Report.
Sec. 207. Powers of the Commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.

                        TITLE III--MISCELLANEOUS

Sec. 301. Big Sioux River and Skunk Creek, Sioux Falls, South Dakota.
Sec. 302. Suspension of petroleum acquisition for Strategic Petroleum 
                            Reserve.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Flood Insurance Reform and 
Modernization Act of 2008''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) the flood insurance claims resulting from the hurricane 
        season of 2005 will likely exceed all previous claims paid by 
        the National Flood Insurance Program;
            (2) in order to pay the legitimate claims of policyholders 
        from the hurricane season of 2005, the Federal Emergency 
        Management Agency has borrowed over $20,000,000,000 from the 
        Treasury;
            (3) the interest alone on this debt, is almost 
        $1,000,000,000 annually, and that the Federal Emergency 
        Management Agency has indicated that it will be unable to pay 
        back this debt;
            (4) the flood insurance program must be strengthened to 
        ensure it can pay future claims;
            (5) while flood insurance is mandatory in the 100-year 
        floodplain, substantial flooding occurs outside of existing 
        special flood hazard areas;
            (6) recent events throughout the country involving areas 
        behind man-made structures, known as ``residual risk'' areas, 
        have produced catastrophic losses;
            (7) although such man-made structures produce an added 
        element of safety and therefore lessen the probability that a 
        disaster will occur, they are nevertheless susceptible to 
        catastrophic loss, even though such areas at one time were not 
        included within the 100-year floodplain; and
            (8) voluntary participation in the National Flood Insurance 
        Program has been minimal and many families residing outside the 
        100-year floodplain remain unaware of the potential risk to 
        their lives and property.

SEC. 103. DEFINITIONS.

    (a) In General.--In this title, the following definitions shall 
apply:
            (1) Director.--The term ``Director'' means the 
        Administrator of the Federal Emergency Management Agency.
            (2) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
        seq.).
            (3) 100-year floodplain.--The term ``100-year floodplain'' 
        means that area which is subject to inundation from a flood 
        having a 1 percent chance of being equaled or exceeded in any 
        given year.
            (4) 500-year floodplain.--The term ``500-year floodplain'' 
        means that area which is subject to inundation from a flood 
        having a 0.2 percent chance of being equaled or exceeded in any 
        given year.
            (5) Write your own.--The term ``Write Your Own'' means the 
        cooperative undertaking between the insurance industry and the 
        Flood Insurance Administration which allows participating 
        property and casualty insurance companies to write and service 
        standard flood insurance policies.
    (b) Common Terminology.--Except as otherwise provided in this 
title, any terms used in this title shall have the meaning given to 
such terms under section 1370 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4121).

SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4026), is amended by striking ``2008'' and inserting ``2013.''.

SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

    Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended by adding at the end the following:
    ``(d) Availability of Insurance for Multifamily Properties.--
            ``(1) In general.--The Director shall make flood insurance 
        available to cover residential properties of more than 4 units. 
        Notwithstanding any other provision of law, the maximum 
        coverage amount that the Director may make available under this 
        subsection to such residential properties shall be equal to the 
        coverage amount made available to commercial properties.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the ability of individuals residing 
        in residential properties of more than 4 units to obtain 
        insurance for the contents and personal articles located in 
        such residences.''.

SEC. 106. REFORM OF PREMIUM RATE STRUCTURE.

    (a) To Exclude Certain Properties From Receiving Subsidized Premium 
Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in paragraph (3), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(4) the exclusion of prospective insureds from purchasing 
        flood insurance at rates less than those estimated under 
        paragraph (1), as required by paragraph (2), for certain 
        properties, including for--
                    ``(A) any property which is not the primary 
                residence of an individual;
                    ``(B) any severe repetitive loss property, as 
                defined in section 1361A(b);
                    ``(C) any property that has incurred flood-related 
                damage in which the cumulative amounts of payments 
                under this title equaled or exceeded the fair market 
                value of such property;
                    ``(D) any business property; and
                    ``(E) any property which on or after the date of 
                enactment of the Flood Insurance Reform and 
                Modernization Act of 2008 has experienced or 
                sustained--
                            ``(i) substantial damage exceeding 50 
                        percent of the fair market value of such 
                        property; or
                            ``(ii) substantial improvement exceeding 30 
                        percent of the fair market value of such 
                        property.''; and
                    (B) by adding at the end the following:
    ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
The Director shall not provide flood insurance to prospective insureds 
at rates less than those estimated under subsection (a)(1), as required 
by paragraph (2) of that subsection, for--
            ``(1) any property not insured by the flood insurance 
        program as of the date of enactment of the Flood Insurance 
        Reform and Modernization Act of 2008;
            ``(2) any policy under the flood insurance program that has 
        lapsed in coverage, as a result of the deliberate choice of the 
        holder of such policy; and
            ``(3) any prospective insured who refuses to accept any 
        offer for mitigation assistance by the Administrator (including 
        an offer to relocate), including an offer of mitigation 
        assistance--
                    ``(A) following a major disaster, as defined in 
                section 102 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5122); or
                    ``(B) in connection with--
                            ``(i) a repetitive loss property; or
                            ``(ii) a severe repetitive loss property, 
                        as that term is defined under section 1361A.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall become effective 90 days after the date of the enactment 
        of this title.
    (b) 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--
            (1) by striking ``under this title for any properties 
        within any single'' and inserting the following: ``under this 
        title for any properties--
            ``(1) within any single''; and
            (2) by striking ``10 percent'' and inserting ``15 
        percent''; and
            (3) by striking the period at the end and inserting the 
        following: ``; and
            ``(2) described in section 1307(a)(4) shall be increased by 
        25 percent each year, until the average risk premium rate for 
        such properties is equal to the average of the risk premium 
        rates for properties described under paragraph (1).''.

SEC. 107. MANDATORY COVERAGE AREAS.

    (a) Special Flood Hazard Areas.--Not later than 90 days after the 
date of enactment of this title, the Director shall issue final 
regulations establishing a revised definition of areas of special flood 
hazards for purposes of the National Flood Insurance Program.
    (b) Residual Risk Areas.--The regulations required by subsection 
(a) shall--
            (1) include any area previously identified by the Director 
        as an area having special flood hazards under section 102 of 
        the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); 
        and
            (2) require the expansion of areas of special flood hazards 
        to include areas of residual risk, including areas that are 
        located behind levees, dams, and other man-made structures.
    (c) Mandatory Participation in National Flood Insurance Program.--
            (1) In general.--Any area described in subsection (b) shall 
        be subject to the mandatory purchase requirements of sections 
        102 and 202 of the Flood Disaster Protection Act of 1973 (42 
        U.S.C. 4012a, 4106).
            (2) Limitation.--The mandatory purchase requirement under 
        paragraph (1) shall have no force or effect until the mapping 
        of all residual risk areas in the United States that the 
        Director determines essential in order to administer the 
        National Flood Insurance Program, as required under section 
        119, are in the maintenance phase.
            (3) Accurate pricing.--In carrying out the mandatory 
        purchase requirement under paragraph (1), the Director shall 
        ensure that the price of flood insurance policies in areas of 
        residual risk accurately reflects the level of flood protection 
        provided by any levee, dam, or other the man-made structure in 
        such area.
    (d) Decertification.--Upon decertification of any levee, dam, or 
man-made structure under the jurisdiction of the Army Corp of 
Engineers, the Corp shall immediately provide notice to the Director of 
the National Flood Insurance Program.

SEC. 108. PREMIUM ADJUSTMENT.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by adding at the end the following:
    ``(g) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding subsection (f), and upon completion of the updating of 
any flood insurance rate map under this Act, the Flood Disaster 
Protection Act of 1973, or the Flood Insurance Reform and Modernization 
Act of 2008, any property located in an area that is participating in 
the national flood insurance program shall have the risk premium rate 
charged for flood insurance on such property adjusted to accurately 
reflect the current risk of flood to such property, subject to any 
other provision of this Act. Any increase in the risk premium rate 
charged for flood insurance on any property that is covered by a flood 
insurance policy on the date of completion of such updating or 
remapping that is a result of such updating or remapping shall be 
phased in over a 2-year period at the rate of 50 percent per year.
    ``(h) Use of Maps to Establish Rates for Certain Counties.--
            ``(1) In general.--Until such time as the updating of flood 
        insurance rate maps under section 19 of the Flood Modernization 
        Act of 2007 is completed (as determined by the district 
        engineer) for all areas located in the St. Louis District of 
        the Mississippi Valley Division of the Corps of Engineers, the 
        Director shall not--
                    ``(A) adjust the chargeable premium rate for flood 
                insurance under this title for any type or class of 
                property located in an area in that District; and
                    ``(B) require the purchase of flood insurance for 
                any type or class of property located in an area in 
                that District not subject to such purchase requirement 
                prior to the updating of such national flood insurance 
                program rate map.
            ``(2) Rule of construction.--For purposes of this 
        subsection, the term `area' does not include any area (or 
        subdivision thereof) that has chosen not to participate in the 
        flood insurance program under this title as of the date of 
        enactment of this subsection.''.

SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

    Section 1305(c) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012(c)) is amended--
            (1) in paragraph (1), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) given satisfactory assurance that by December 31, 
        2008, lending institutions chartered by a State, and not 
        insured by the Federal Deposit Insurance Corporation, shall be 
        subject to regulations by that State that are consistent with 
        the requirements of section 102 of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a).''.

SEC. 110. ENFORCEMENT.

    Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)(5)) is amended--
            (1) in the first sentence, by striking ``$350'' and 
        inserting ``$2,000''; and
            (2) by striking the second sentence.

SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS.

    (a) In General.--Section 102(d) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Regulated lending institutions.--
                    ``(A) Federal entities responsible for lending 
                regulations.--Each Federal entity for lending 
                regulation (after consultation and coordination with 
                the Federal Financial Institutions Examination Council) 
                shall, by regulation, direct that any premiums and fees 
                for flood insurance under the National Flood Insurance 
                Act of 1968, on any property for which a loan has been 
                made for acquisition or construction purposes, shall be 
                paid to the mortgage lender, with the same frequency as 
                payments on the loan are made, for the duration of the 
                loan. Upon receipt of any premiums or fees, the lender 
                shall deposit such premiums and fees in an escrow 
                account on behalf of the borrower. Upon receipt of a 
                notice from the Director or the provider of the flood 
                insurance that insurance premiums are due, the 
                remaining balance of an escrow account shall be paid to 
                the provider of the flood insurance.
                    ``(B) State entities responsible for lending 
                regulations.--In order to continue to participate in 
                the flood insurance program, each State shall direct 
                that its entity or agency with primary responsibility 
                for the supervision of lending institutions in that 
                State require that premiums and fees for flood 
                insurance under the National Flood Insurance Act of 
                1968, on any property for which a loan has been made 
                for acquisition or construction purposes shall be paid 
                to the mortgage lender, with the same frequency as 
                payments on the loan are made, for the duration of the 
                loan. Upon receipt of any premiums or fees, the lender 
                shall deposit such premiums and fees in an escrow 
                account on behalf of the borrower. Upon receipt of a 
                notice from such State entity or agency, the Director, 
                or the provider of the flood insurance that insurance 
                premiums are due, the remaining balance of an escrow 
                account shall be paid to the provider of the flood 
                insurance.''; and
            (2) by adding at the end the following:
            ``(6) Notice upon loan termination.--Upon final payment of 
        the mortgage, a regulated lending institution shall provide 
        notice to the policyholder that insurance coverage may cease 
        with such final payment. The regulated lending institution 
        shall also provide direction as to how the homeowner may 
        continue flood insurance coverage after the life of the 
        loan.''.
    (b) Applicability.--The amendment made by subsection (a)(1) shall 
apply to any mortgage outstanding or entered into on or after the 
expiration of the 2-year period beginning on the date of enactment of 
this title.

SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS.

    (a) In General.--The Secretary of the Treasury relinquishes the 
right to any repayment of amounts due from the Director in connection 
with the exercise of the authority vested to the Director to borrow 
such sums under section 1309 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4016), to the extent such borrowed sums were used to 
fund the payment of flood insurance claims under the National Flood 
Insurance Program for any damage to or loss of property resulting from 
the hurricanes of 2005.
    (b) Certification.--The debt forgiveness described under subsection 
(a) shall only take effect if the Director certifies to the Secretary 
of Treasury that all authorized resources or funds available to the 
Director to operate the National Flood Insurance Program--
            (1) have been otherwise obligated to pay claims under the 
        National Flood Insurance Program; and
            (2) are not otherwise available to make payments to the 
        Secretary on any outstanding notes or obligations issued by the 
        Director and held by the Secretary.
    (c) Decrease in 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)) is amended by striking ``; except that, 
through September 30, 2008, clause (2) of this sentence shall be 
applied by substituting `$20,775,000,000' for `$1,500,000,000'''.

SEC. 113. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL FLOOD 
              INSURANCE PROGRAM.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following:
    ``(a) In General.--The Director is''; and
            (2) by adding at the end the following:
    ``(b) Minimum Annual Deductible.--
            ``(1) Pre-firm properties.--For any structure which is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred on or before 
        December 31, 1974, or before the effective date of an initial 
        flood insurance rate map published by the Director under 
        section 1360 for the area in which such structure is located, 
        the minimum annual deductible for damage to such structure 
        shall be--
                    ``(A) $1,500, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $2,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.
            ``(2) Post-firm properties.--For any structure which is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred after December 
        31, 1974, or after the effective date of an initial flood 
        insurance rate map published by the Director under section 1360 
        for the area in which such structure is located, the minimum 
        annual deductible for damage to such structure shall be--
                    ``(A) $750, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $1,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.''.

SEC. 114. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)) is amended--
            (1) in subsection (a), by striking ``, after consultation 
        with'' and all that follows through ``by regulation'' and 
        inserting ``prescribe, after providing notice'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking the period at the 
                end and inserting a semicolon;
                    (B) in paragraph (2), by striking the comma at the 
                end and inserting a semicolon;
                    (C) in paragraph (3), by striking ``, and'' and 
                inserting a semicolon;
                    (D) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(5) adequate, on the basis of accepted actuarial 
        principles, to cover the average historical loss year 
        obligations incurred by the National Flood Insurance Fund.''; 
        and
            (3) by adding at the end the following:
    ``(h) Rule of Construction.--For purposes of this section, the 
calculation of an `average historical loss year'--
            ``(1) includes catastrophic loss years; and
            ``(2) shall be computed in accordance with generally 
        accepted actuarial principles.''.

SEC. 115. RESERVE FUND.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by inserting after section 1310 the following:

``SEC. 1310A. RESERVE FUND.

    ``(a) Establishment of Reserve Fund.--In carrying out the flood 
insurance program authorized by this chapter, the Director shall 
establish in the Treasury of the United States a National Flood 
Insurance Reserve Fund (in this section referred to as the `Reserve 
Fund') which shall--
            ``(1) be an account separate from any other accounts or 
        funds available to the Director; and
            ``(2) be available for meeting the expected future 
        obligations of the flood insurance program.
    ``(b) Reserve Ratio.--Subject to the phase-in requirements under 
subsection (d), the Reserve Fund shall maintain a balance equal to--
            ``(1) 1 percent of the sum of the total potential loss 
        exposure of all outstanding flood insurance policies in force 
        in the prior fiscal year; or
            ``(2) such higher percentage as the Director determines to 
        be appropriate, taking into consideration any circumstance that 
        may raise a significant risk of substantial future losses to 
        the Reserve Fund.
    ``(c) Maintenance of Reserve Ratio.--
            ``(1) In general.--The Director shall have the authority to 
        establish, increase, or decrease the amount of aggregate annual 
        insurance premiums to be collected for any fiscal year 
        necessary--
                    ``(A) to maintain the reserve ratio required under 
                subsection (b); and
                    ``(B) to achieve such reserve ratio, if the actual 
                balance of such reserve is below the amount required 
                under subsection (b).
            ``(2) Considerations.--In exercising the authority granted 
        under paragraph (1), the Director shall consider--
                    ``(A) the expected operating expenses of the 
                Reserve Fund;
                    ``(B) the insurance loss expenditures under the 
                flood insurance program;
                    ``(C) any investment income generated under the 
                flood insurance program; and
                    ``(D) any other factor that the Director determines 
                appropriate.
            ``(3) Limitations.--In exercising the authority granted 
        under paragraph (1), the Director shall be subject to all other 
        provisions of this Act, including any provisions relating to 
        chargeable premium rates or annual increases of such rates.
    ``(d) Phase-In Requirements.--The phase-in requirements under this 
subsection are as follows:
            ``(1) In general.--Beginning in fiscal year 2008 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved, in each such fiscal year the 
        Director shall place in the Reserve Fund an amount equal to not 
        less than 7.5 percent of the reserve ratio required under 
        subsection (b).
            ``(2) Amount satisfied.--As soon as the ratio required 
        under subsection (b) is achieved, and except as provided in 
        paragraph (3), the Director shall not be required to set aside 
        any amounts for the Reserve Fund.
            ``(3) Exception.--If at any time after the ratio required 
        under subsection (b) is achieved, the Reserve Fund falls below 
        the required ratio under subsection (b), the Director shall 
        place in the Reserve Fund for that fiscal year an amount equal 
        to not less than 7.5 percent of the reserve ratio required 
        under subsection (b).
    ``(e) Limitation on Reserve Ratio.--In any given fiscal year, if 
the Director determines that the reserve ratio required under 
subsection (b) cannot be achieved, the Director shall submit a report 
to Congress that--
            ``(1) describes and details the specific concerns of the 
        Director regarding such consequences;
            ``(2) demonstrates how such consequences would harm the 
        long-term financial soundness of the flood insurance program; 
        and
            ``(3) indicates the maximum attainable reserve ratio for 
        that particular fiscal year.''.

SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY.

    Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016) is amended by adding at the end the following:
    ``(c) Any funds borrowed by the Director under the authority 
established in subsection (a) shall include a schedule for repayment of 
such amounts which shall be transmitted to the--
            ``(1) Secretary of the Treasury;
            ``(2) Committee on Banking, Housing, and Urban Affairs of 
        the Senate; and
            ``(3) Committee on Financial Services of the House of 
        Representatives.
    ``(d) In addition to the requirement under subsection (c), in 
connection with any funds borrowed by the Director under the authority 
established in subsection (a), the Director, beginning 6 months after 
the date on which such borrowed funds are issued, and continuing every 
6 months thereafter until such borrowed funds are fully repaid, shall 
submit a report on the progress of such repayment to the--
            ``(1) Secretary of the Treasury;
            ``(2) Committee on Banking, Housing, and Urban Affairs of 
        the Senate; and
            ``(3) Committee on Financial Services of the House of 
        Representatives.''.

SEC. 117. PAYMENT OF CONDOMINIUM CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 113, is further amended by adding at the 
end the following:
    ``(c) Payment of Claims to Condominium Owners.--The Director may 
not deny payment for any damage to or loss of property which is covered 
by flood insurance to condominium owners who purchased such flood 
insurance separate and apart from the flood insurance purchased by the 
condominium association in which such owner is a member, based, solely 
or in any part, on the flood insurance coverage of the condominium 
association or others on the overall property owned by the condominium 
association. Notwithstanding any regulations, rules, or restrictions 
established by the Director relating to appeals and filing deadlines, 
the Director shall ensure that the requirements of this subsection are 
met with respect to any claims for damages resulting from flooding in 
2005 and 2006.''.

SEC. 118. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of the Director, 
        or the designee thereof, and 12 additional members to be 
        appointed by the Director or the designee of the Director, who 
        shall be--
                    (A) the Under Secretary of Commerce for Oceans and 
                Atmosphere (or the designee thereof);
                    (B) a member of a recognized professional surveying 
                association or organization
                    (C) a member of a recognized professional mapping 
                association or organization;
                    (D) a member of a recognized professional 
                engineering association or organization;
                    (E) a member of a recognized professional 
                association or organization representing flood hazard 
                determination firms;
                    (F) a representative of the United States 
                Geological Survey;
                    (G) a representative of a recognized professional 
                association or organization representing State 
                geographic information;
                    (H) a representative of State national flood 
                insurance coordination offices;
                    (I) a representative of the Corps of Engineers;
                    (J) the Secretary of the Interior (or the designee 
                thereof);
                    (K) the Secretary of Agriculture (or the designee 
                thereof);
                    (L) a member of a recognized regional flood and 
                storm water management organization;
                    (M) a representative of a State agency that has 
                entered into a cooperating technical partnership with 
                the Director and has demonstrated the capability to 
                produce flood insurance rate maps; and
                    (N) a representative of a local government agency 
                that has entered into a cooperating technical 
                partnership with the Director and has demonstrated the 
                capability to produce flood insurance rate maps.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps.
    (c) Duties.--The Council shall--
            (1) recommend to the Director how to improve in a cost-
        effective manner the--
                    (A) accuracy, general quality, ease of use, and 
                distribution and dissemination of flood insurance rate 
                maps and risk data; and
                    (B) performance metrics and milestones required to 
                effectively and efficiently map flood risk areas in the 
                United States;
            (2) recommend to the Director mapping standards and 
        guidelines for--
                    (A) flood insurance rate maps; and
                    (B) data accuracy, data quality, data currency, and 
                data eligibility;
            (3) recommend to the Director how to maintain on an ongoing 
        basis flood insurance rate maps and flood risk identification;
            (4) recommend procedures for delegating mapping activities 
        to State and local mapping partners;
            (5) recommend to the Director and other Federal agencies 
        participating in the Council--
                    (A) methods for improving interagency and 
                intergovernmental coordination on flood mapping and 
                flood risk determination; and
                    (B) a funding strategy to leverage and coordinate 
                budgets and expenditures across Federal agencies; and
            (6) submit an annual report to the Director that contains--
                    (A) a description of the activities of the Council;
                    (B) an evaluation of the status and performance of 
                flood insurance rate maps and mapping activities to 
                revise and update flood insurance rate maps, as 
                required under section 119; and
                    (C) a summary of recommendations made by the 
                Council to the Director.
    (d) Future Conditions Risk Assessment and Modeling Report.--
            (1) In general.--The Council shall consult with scientists 
        and technical experts, other Federal agencies, States, and 
        local communities to--
                    (A) develop recommendations on how to--
                            (i) ensure that flood insurance rate maps 
                        incorporate the best available climate science 
                        to assess flood risks; and
                            (ii) ensure that the Federal Emergency 
                        Management Agency uses the best available 
                        methodology to consider the impact of--
                                    (I) the rise in the sea level; and
                                    (II) future development on flood 
                                risk; and
                    (B) not later than 1 year after the date of 
                enactment of this title, prepare written 
                recommendations in a future conditions risk assessment 
                and modeling report and to submit such recommendations 
                to the Director.
            (2) Responsibility of the director.--The Director, as part 
        of the ongoing program to review and update National Flood 
        Insurance Program rate maps under section 119, shall 
        incorporate any future risk assessment submitted under 
        paragraph (1)(B) in any such revision or update.
    (e) Chairperson.--The members of the Council shall elect 1 member 
to serve as the chairperson of the Council (in this section referred to 
as the ``Chairperson'').
    (f) Coordination.--To ensure that the Council's recommendations are 
consistent, to the maximum extent practicable, with national digital 
spatial data collection and management standards, the Chairperson shall 
consult with the Chairperson of the Federal Geographic Data Committee 
(established pursuant to OMB Circular A-16).
    (g) Compensation.--Members of the Council shall receive no 
additional compensation by reason of their service on the Council.
    (h) Meetings and Actions.--
            (1) In general.--The Council shall meet not less frequently 
        than twice each year at the request of the Chairperson or a 
        majority of its members, and may take action by a vote of the 
        majority of the members.
            (2) Initial meeting.--The Director, or a person designated 
        by the Director, shall request and coordinate the initial 
        meeting of the Council.
    (i) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    (j) Staff.--
            (1) Staff of fema.--Upon the request of the Chairperson, 
        the Director may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the 
        Council in carrying out its duties.
            (2) Staff of other federal agencies.--Upon request of the 
        Chairperson, any other Federal agency that is a member of the 
        Council may detail, on a non-reimbursable basis, personnel to 
        assist the Council in carrying out its duties.
    (k) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as it considers appropriate.
    (l) Report to Congress.--The Director, on an annual basis, shall 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate, the Committee on Financial Services of the House of 
Representatives, and the Office of Management and Budget on the--
            (1) recommendations made by the Council; and
            (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve flood 
        insurance rate maps and flood risk data.

SEC. 119. NATIONAL FLOOD MAPPING PROGRAM.

    (a) Reviewing, Updating, and Maintaining Maps.--The Director, in 
coordination with the Technical Mapping Advisory Council established 
under section 118, shall establish an ongoing program under which the 
Director shall review, update, and maintain National Flood Insurance 
Program rate maps in accordance with this section.
    (b) Mapping.--
            (1) In general.--In carrying out the program established 
        under subsection (a), the Director shall--
                    (A) identify, review, update, maintain, and publish 
                National Flood Insurance Program rate maps with respect 
                to--
                            (i) all areas located within the 100-year 
                        floodplain;
                            (ii) all areas located within the 500-year 
                        floodplain;
                            (iii) areas of residual risk that have not 
                        previously been identified, including areas 
                        that are protected levees, dams, and other man-
                        made structures; and
                            (iv) areas that could be inundated as a 
                        result of the failure of a levee, dam, or other 
                        man-made structure;
                            (v) the level of protection provided by 
                        man-made structures.
                    (B) establish or update flood-risk zone data in all 
                such areas, and make estimates with respect to the 
                rates of probable flood caused loss for the various 
                flood risk zones for each such area; and
                    (C) use, in identifying, reviewing, updating, 
                maintaining, or publishing any National Flood Insurance 
                Program rate map required under this section or under 
                the National Flood Insurance Act of 1968, the most 
                accurate topography and elevation data available.
            (2) Mapping elements.--Each map updated under this section 
        shall:
                    (A) Ground elevation data.--Assess the accuracy of 
                current ground elevation data used for hydrologic and 
                hydraulic modeling of flooding sources and mapping of 
                the flood hazard and wherever necessary acquire new 
                ground elevation data utilizing the most up-to-date 
                geospatial technologies in accordance with the existing 
                guidelines and specifications of the Federal Emergency 
                Management Agency.
                    (B) Data on a watershed basis.--Develop National 
                Flood Insurance Program flood data on a watershed 
                basis--
                            (i) to provide the most technically 
                        effective and efficient studies and hydrologic 
                        and hydraulic modeling; and
                            (ii) to eliminate, to the maximum extent 
                        possible, discrepancies in base flood 
                        elevations between adjacent political 
                        subdivisions.
            (3) Other inclusions.--In updating maps under this section, 
        the Director shall include--
                    (A) 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;
                    (B) any relevant information of the United States 
                Geological Survey on stream flows, watershed 
                characteristics, and topography that is useful in the 
                identification of flood hazard areas, as determined by 
                the Director;
                    (C) any relevant information on land subsidence, 
                coastal erosion areas, and other floor-related hazards;
                    (D) any relevant information or data of the 
                National Oceanic and Atmospheric Administration and the 
                United States Geological Survey relating to the best 
                available climate science and the potential for future 
                inundation from sea level rise, increased 
                precipitation, and increased intensity of hurricanes 
                due to global warming; and
                    (E) any other relevant information as may be 
                recommended by the Technical Mapping Advisory 
                Committee.
    (c) Standards.--In updating and maintaining maps under this 
section, the Director shall--
            (1) 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 identification and use of consistent 
                methods of data collection and analysis by the 
                Director, in conjunction with State and local 
                governments, in developing maps for communities with 
                similar flood risks, as determined by the Director; and
            (2) publish maps in a format that is--
                    (A) digital geospatial data compliant;
                    (B) compliant with the open publishing and data 
                exchange standards established by the Open Geospatial 
                Consortium; and
                    (C) compliant with the North American Vertical 
                Datum of 1998 for New Hydrologic and Hydraulic 
                Engineering.
    (d) Communication and Outreach.--
            (1) In general.--The Director shall--
                    (A) work to enhance communication and outreach to 
                States, local communities, and property owners about 
                the effects of--
                            (i) any potential changes to National Flood 
                        Insurance Program rate maps that may result 
                        from the mapping program required under this 
                        section; and
                            (ii) that any such changes may have on 
                        flood insurance purchase requirements; and
                    (B) engage with local communities to enhance 
                communication and outreach to the residents of such 
                communities on the matters described under subparagraph 
                (A).
            (2) Required activities.--The communication and outreach 
        activities required under paragraph (1) shall include--
                    (A) notifying property owners when their properties 
                become included in, or when they are excluded from, an 
                area having special flood hazards and the effect of 
                such inclusion or exclusion on the applicability of the 
                mandatory flood insurance purchase requirement under 
                section 102 of the Flood Disaster Protection Act of 
                1973 (42 U.S.C. 4012a) to such properties;
                    (B) educating property owners regarding the flood 
                risk and reduction of this risk in their community, 
                including the continued flood risks to areas that are 
                no longer subject to the flood insurance mandatory 
                purchase requirement;
                    (C) educating property owners regarding the 
                benefits and costs of maintaining or acquiring flood 
                insurance, including, where applicable, lower-cost 
                preferred risk policies under the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4011 et seq.) for such 
                properties and the contents of such properties;
                    (D) educating property owners about flood map 
                revisions and the process available such owners to 
                appeal proposed changes in flood elevations through 
                their community; and
                    (E) encouraging property owners to maintain or 
                acquire flood insurance coverage.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Director to carry out this section $400,000,000 for 
each of fiscal years 2008 through 2013.

SEC. 120. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR UPDATING 
              FLOOD MAPS.

    Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(f)(2)) is amended by striking ``, but which may not exceed 
50 percent of the cost of carrying out the requested revision or 
update''.

SEC. 121. COORDINATION.

    (a) Interagency Budget Crosscut Report.--
            (1) In general.--The Secretary of Homeland Security, the 
        Director, the Director of the Office of Management and Budget, 
        and the heads of each Federal department or agency carrying out 
        activities under sections 118 and 119 shall work together to 
        ensure that flood risk determination data and geospatial data 
        are shared among Federal agencies in order to coordinate the 
        efforts of the Nation to reduce its vulnerability to flooding 
        hazards.
            (2) Report.--Not later than 30 days after the submission of 
        the budget of the United States Government by the President to 
        Congress, the Director of the Office of Management and Budget, 
        in coordination with the Federal Emergency Management Agency, 
        the United States Geological Survey, the National Oceanic and 
        Atmospheric Administration, the Corps of Engineers, and other 
        Federal agencies, as appropriate, shall submit to the 
        appropriate authorizing and appropriating committees of the 
        Senate and the House of Representatives a financial report, 
        certified by the Secretary or head of each such agency, an 
        interagency budget crosscut report that displays the budget 
        proposed for each of the Federal agencies working on flood risk 
        determination data and digital elevation models, including any 
        planned interagency or intraagency transfers.
    (b) Duties of the Director.--In carrying out sections 118 and 119, 
the Director shall--
            (1) participate, pursuant to section 216 of Public Law 107-
        347 (116 Stat. 2945), in the establishment of such standards 
        and common protocols as are necessary to assure the 
        interoperability of geospatial data for all users of such 
        information;
            (2) coordinate with, seek assistance and cooperation of, 
        and provide liaison to the Federal Geographic Data Committee 
        pursuant to Office of Management and Budget Circular A-16 and 
        Executive Order 12906 for the implementation of and compliance 
        with such standards;
            (3) integrate with, leverage, and coordinate funding of, to 
        the maximum extent practicable, the current flood mapping 
        activities of each unit of State and local government;
            (4) integrate with, leverage, and coordinate, to the 
        maximum extent practicable, the current geospatial activities 
        of other Federal agencies and units of State and local 
        government; and
            (5) develop a funding strategy to leverage and coordinate 
        budgets and expenditures, and to establish joint funding 
        mechanisms with other Federal agencies and units of State and 
        local government to share the collection and utilization of 
        geospatial data among all governmental users.

SEC. 122. INTERAGENCY COORDINATION STUDY.

    (a) In General.--The Director shall enter into a contract with the 
National Academy of Public Administration to conduct a study on how the 
Federal Emergency Management Agency--
            (1) should improve interagency and intergovernmental 
        coordination on flood mapping, including a funding strategy to 
        leverage and coordinate budgets and expenditures; and
            (2) can establish joint funding mechanisms with other 
        Federal agencies and units of State and local government to 
        share the collection and utilization of data among all 
        governmental users.
    (b) Timing.--Not later than 180 days after the date of enactment of 
this title, the National Academy of Public Administration shall report 
the findings of the study required under subsection (a) to the--
            (1) Committee on Banking, Housing, and Urban Affairs of the 
        Senate;
            (2) Committee on Financial Services of the House of 
        Representatives;
            (3) Committee on Appropriations of the Senate; and
            (4) Committee on Appropriations of the House of 
        Representatives.

SEC. 123. NONMANDATORY PARTICIPATION.

    (a) Nonmandatory Participation in National Flood Insurance Program 
for 500-Year Floodplain.--Any area located within the 500-year 
floodplain shall not be subject to the mandatory purchase requirements 
of sections 102 or 202 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a, 4106).
    (b) Notice.--
            (1) By director.--In carrying out the National Flood 
        Insurance Program, the Director shall provide notice to any 
        community located in an area within the 500-year floodplain.
            (2) Timing of notice.--The notice required under paragraph 
        (1) shall be made not later than 6 months after the date of 
        completion of the initial mapping of the 500-year floodplain, 
        as required under section 118.
            (3) Lender required notice.--
                    (A) Regulated lending institutions.--Each Federal 
                or State entity for lending regulation (after 
                consultation and coordination with the Federal 
                Financial Institutions Examination Council) shall, by 
                regulation, require regulated lending institutions, as 
                a condition of making, increasing, extending, or 
                renewing any loan secured by property located in an 
                area within the 500-year floodplain, to notify the 
                purchaser or lessee (or obtain satisfactory assurances 
                that the seller or lessor has notified the purchaser or 
                lessee) and the servicer of the loan that such property 
                is located in an area within the 500-year floodplain, 
                in a manner that is consistent with and substantially 
                identical to the notice required under section 
                1364(a)(1) of the National Flood Insurance Act of 1968 
                (42 U.S.C. 4104a(a)(1)).
                    (B) Federal or state agency lenders.--Each Federal 
                or State agency lender shall, by regulation, require 
                notification in the same manner as provided under 
                subparagraph (A) with respect to any loan that is made 
                by a Federal or State agency lender and secured by 
                property located in an area within the 500-year 
                floodplain.
                    (C) Penalty for noncompliance.--Any regulated 
                lending institution or Federal or State agency lender 
                that fails to comply with the notice requirements 
                established by this paragraph shall be subject to the 
                penalties prescribed under section 102(f)(5) of the 
                Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a(f)(5)).

SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

    Section 5(b) of the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2604(b)) is amended--
            (1) in paragraph (4), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(6) an explanation of flood insurance and the 
        availability of flood insurance under the National Flood 
        Insurance Program, whether or not the real estate is located in 
        an area having special flood hazards.''.

SEC. 125. TESTING OF NEW FLOODPROOFING TECHNOLOGIES.

    (a) Permissible Testing.--A temporary residential structure built 
for the purpose of testing a new flood proofing technology, as 
described in subsection (b), in any State or community that receives 
mitigation assistance under section 1366 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104c) may not be construed to be in 
violation of any flood risk mitigation plan developed by that State or 
community and approved by the Director of the Federal Emergency 
Management Agency.
    (b) Conditions on Testing.--Testing permitted under subsection (a) 
shall--
            (1) be performed on an uninhabited residential structure;
            (2) require dismantling of the structure at the conclusion 
        of such testing; and
            (3) require that all costs associated with such testing and 
        dismantling be covered by the individual or entity conducting 
        the testing, or on whose behalf the testing is conducted.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to alter, limit, or extend the availability of flood 
insurance to any structure that may employ, utilize, or apply any 
technology tested under subsection (b).

SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by inserting after section 1313 the following:

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

    ``(a) Requirement to Participate.--In the case of the occurrence of 
a major disaster, as defined in section 102 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) that may 
have resulted in flood damage under the flood insurance program 
established under this chapter and other personal lines residential 
property insurance coverage offered by a State regulated insurer, upon 
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 major disaster, the Director shall cause 
representatives of the flood insurance program to participate in such a 
State program where claims under the flood insurance program are 
involved to expedite settlement of flood damage claims resulting from 
such disaster.
    ``(b) Extent of Participation.--In satisfying the requirements of 
subsection (a), the Director shall require that each representative of 
the Director--
            ``(1) be certified for purposes of the flood insurance 
        program to settle claims against such program resulting from 
        such disaster in amounts up to the limits of policies under 
        such program;
            ``(2) attend State-sponsored mediation meetings regarding 
        flood insurance claims resulting from such disaster at such 
        times and places as may be arranged by the State;
            ``(3) participate in good faith negotiations toward the 
        settlement of such claims with policyholders of coverage made 
        available under the flood insurance program; and
            ``(4) finalize the settlement of such claims on behalf of 
        the flood insurance program with such policyholders.
    ``(c) Coordination.--Representatives of the Director shall at all 
times coordinate their activities with insurance officials of the State 
and representatives of insurers for the purposes of consolidating and 
expediting settlement of claims under the national flood insurance 
program resulting from such disaster.
    ``(d) Qualifications of Mediators.--Each State mediator 
participating in State-sponsored mediation under this section shall 
be--
            ``(1)(A) a member in good standing of the State bar in the 
        State in which the mediation is to occur with at least 2 years 
        of practical experience; and
            ``(B) an active member of such bar for at least 1 year 
        prior to the year in which such mediator's participation is 
        sought; or
            ``(2) a retired trial judge from any United States 
        jurisdiction who was a member in good standing of the bar in 
        the State in which the judge presided for at least 5 years 
        prior to the year in which such mediator's participation is 
        sought.
    ``(e) Mediation Proceedings and Documents Privileged.--As a 
condition of participation, all statements made and documents produced 
pursuant to State-sponsored mediation involving representatives of the 
Director shall be deemed privileged and confidential settlement 
negotiations made in anticipation of litigation.
    ``(f) Liability, Rights, or Obligations Not Affected.--
Participation in State-sponsored mediation, as described in this 
section does not--
            ``(1) affect or expand the liability of any party in 
        contract or in tort; or
            ``(2) affect the rights or obligations of the parties, as 
        established--
                    ``(A) in any regulation issued by the Director, 
                including any regulation relating to a standard flood 
                insurance policy;
                    ``(B) under this Act; and
                    ``(C) under any other provision of Federal law.
    ``(g) Exclusive Federal Jurisdiction.--Participation in State-
sponsored mediation shall not alter, change, or modify the original 
exclusive jurisdiction of United States courts, as set forth in this 
Act.
    ``(h) Cost Limitation.--Nothing in this section shall be construed 
to require the Director or a representative of the Director to pay 
additional mediation fees relating to flood insurance claims associated 
with a State-sponsored mediation program in which such representative 
of the Director participates.
    ``(i) Exception.--In the case of the occurrence of a major disaster 
that results in flood damage claims under the national flood insurance 
program and that does not result in any loss covered by a personal 
lines residential property insurance policy--
            ``(1) this section shall not apply; and
            ``(2) the provisions of the standard flood insurance policy 
        under the national flood insurance program and the appeals 
        process established under section 205 of the Bunning-Bereuter-
        Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
        note) and the regulations issued pursuant to such section shall 
        apply exclusively.
    ``(j) Representatives of the Director.--For purposes of this 
section, the term `representatives of the Director' means 
representatives of the national flood insurance program who participate 
in the appeals process established under section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
note).''.

SEC. 127. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 REFORM 
              ACT.

    (a) Minimum Training and Education Requirements.--The Director 
shall 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, as such standards were determined by the 
Director in the notice published in the Federal Register on 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).
    (b) Report on the Overall Implementation of the Reform Act of 
2004.--Not later than 3 months after the date of the enactment of this 
title, the Director shall submit a report to Congress--
            (1) describing the implementation of each provision of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (Public Law 108-264; 118 Stat. 712);
            (2) identifying each regulation, order, notice, and other 
        material issued by the Director in implementing each provision 
        of that Act;
            (3) explaining any statutory or implied deadlines that have 
        not been met; and
            (4) providing an estimate of when the requirements of such 
        missed deadlines will be fulfilled.

SEC. 128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION ON CLAIMS 
              PAYMENTS.

    (a) In General.--The Director shall collect, from property and 
casualty insurance companies that are authorized by the Director to 
participate in the Write Your Own program any information and data 
needed to determine the accuracy of the resolution of flood claims 
filed on any property insured with a standard flood insurance policy 
obtained under the program that was subject to a flood.
    (b) Type of Information To Be Collected.--The information and data 
to be collected under subsection (a) may include--
            (1) any adjuster estimates made as a result of flood 
        damage, and if the insurance company also insures the property 
        for wind damage--
                    (A) any adjuster estimates for both wind and flood 
                damage;
                    (B) the amount paid to the property owner for wind 
                and flood claims;
                    (C) the total amount paid to the policyholder for 
                damages as a result of the event that caused the 
                flooding and other losses;
            (2) any amounts paid to the policyholder by the insurance 
        company for damages to the insured property other than flood 
        damages; and
            (3) the total amount paid to the policyholder by the 
        insurance company for all damages incurred to the insured 
        property as a result of the flood.

SEC. 129. EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

    (a) Submission of Biennial Reports.--
            (1) To the director.--Not later than 20 days after the date 
        of enactment of this title, each property and casualty 
        insurance company that is authorized by the Director to 
        participate in the Write Your Own program shall submit to the 
        Director any biennial report prepared in the prior 5 years by 
        such company.
            (2) To gao.--Not later than 10 days after the submission of 
        the biennial reports under paragraph (1), the Director shall 
        submit all such reports to the Comptroller General of the 
        United States.
            (3) Notice to congress of failure to comply.--The Director 
        shall notify and report to the Committee on Banking, Housing, 
        and Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives on any property and 
        casualty insurance company participating in the Write Your Own 
        program that failed to submit its biennial reports as required 
        under paragraph (1).
            (4) Failure to comply.--A property and casualty insurance 
        company that is authorized by the Director to participate in 
        the Write Your Own program which fails to comply with the 
        reporting requirement under this subsection or the requirement 
        under section 62.23(j)(1) of title 44, Code of Federal 
        Regulations (relating to biennial audit of the flood insurance 
        financial statements) shall be subject to a civil penalty in an 
        amount equal to $1,000 per day for each day that the company 
        remains in noncompliance with either such requirement.
    (b) FEMA Rulemaking on Expenses of WYO Program.--Not later than 180 
days after the date of enactment of this title, the Director shall 
conduct a rulemaking proceeding to devise a data collection methodology 
to allow the Federal Emergency Management Agency to collect consistent 
information on the expenses (including the operating and administrative 
expenses for adjustment of claims) of property and casualty insurance 
companies participating in the Write Your Own program for selling, 
writing, and servicing, standard flood insurance policies.
    (c) Submission of Expense Reports.--Not later than 60 days after 
the effective date of the final rule established pursuant to subsection 
(b), each property and casualty insurance company participating in the 
Write Your Own program shall submit a report to the Director that 
details for the prior 5 years the expense levels of each such company 
for selling, writing, and servicing standard flood insurance policies 
based on the methodologies established under subsection (b).
    (d) FEMA Rulemaking on Reimbursement of Expenses Under the WYO 
Program.--Not later than 15 months after the date of enactment of this 
title, the Director shall conduct a rulemaking proceeding to formulate 
revised expense reimbursements to property and casualty insurance 
companies participating in the Write Your Own program for their 
expenses (including their operating and administrative expenses for 
adjustment of claims) in selling, writing, and servicing standard flood 
insurance policies, including how such companies shall be reimbursed in 
both catastrophic and non-catastrophic years. Such reimbursements shall 
be structured to ensure reimbursements track the actual expenses, 
including standard business costs and operating expenses, of such 
companies as close as practicably possible.
    (e) Report of the Director.--Not later than 60 days after the 
effective date of any final rule established pursuant to subsection (b) 
or subsection (d), the Director shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report 
containing--
            (1) the specific rationale and purposes of such rule;
            (2) the reasons for the adoption of the policies contained 
        in such rule; and
            (3) the degree to which such rule accurately represents the 
        true operating costs and expenses of property and casualty 
        insurance companies participating in the Write Your Own 
        program.
    (f) GAO Study and Report on Expenses of WYO Program.--
            (1) Study.--Not later than 180 days after the effective 
        date of the final rule established pursuant to subsection (d), 
        the Comptroller General of the United States shall--
                    (A) conduct a study on the efficacy, adequacy, and 
                sufficiency of the final rules established pursuant to 
                subsections (b) and (d); and
                    (B) report to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives on 
                the findings of the study conducted under subparagraph 
                (A).
            (2) GAO authority.--In conducting the study and report 
        required under paragraph (1), the Comptroller General--
                    (A) may use any previous findings, studies, or 
                reports that the Comptroller General previously 
                completed on the Write Your Own program;
                    (B) shall determine if--
                            (i) the final rules established pursuant to 
                        subsections (b) and (d) allow the Federal 
                        Emergency Management Agency to access adequate 
                        information regarding the actual expenses of 
                        property and casualty insurance companies 
                        participating in the Write Your Own program; 
                        and
                            (ii) the actual reimbursements paid out 
                        under the final rule established in subsection 
                        (d) accurately reflect the expenses reported by 
                        property and casualty insurance companies 
                        participating in the Write Your Own program, 
                        including the standard business costs and 
                        operating expenses of such companies; and
                    (C) shall analyze the effect of such rules on the 
                level of participation of property and casualty 
                insurers in the Write Your Own program.

SEC. 130. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE 
              REPETITIVE LOSS PROPERTIES.

    (a) In General.--Section 1361A of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102a) is amended--
            (1) in subsection (k)(1)--
                    (A) in the first sentence, by striking ``in each of 
                fiscal years 2005, 2006, 2007, 2008, and 2009'' and 
                inserting ``in each fiscal year through fiscal year 
                2013''; and
                    (B) by adding at the end the following new 
                sentence: ``For fiscal years 2008 through the 2013, the 
                total amount that the Director may use to provide 
                assistance under this section shall not exceed 
                $240,000,000.''; and
            (2) by striking subsection (l).
    (b) Report to Congress on Implementation Status.--Not later than 6 
months after the date of enactment of this title, the Director shall 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House of 
Representatives on the status of the implementation of the pilot 
program for severe repetitive loss properties authorized under section 
1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
    (c) Rulemaking.--No later than 90 days after the date of enactment 
of this title, the Director shall issue final rules to carry out the 
severe repetitive loss pilot program authorized under section 1361A of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).

SEC. 131. FLOOD INSURANCE ADVOCATE.

    Chapter II of the National Flood Insurance Act of 1968 is amended 
by inserting after section 1330 (42 U.S.C. 4041) the following new 
section:

``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

    ``(a) Establishment of Position.--
            ``(1) In general.--There shall be in the Federal Emergency 
        Management Agency an Office of the Flood Insurance Advocate 
        which shall be headed by the National Flood Insurance Advocate. 
        The National Flood Insurance Advocate shall--
                    ``(A) to the extent amounts are provided pursuant 
                to subsection (n), be compensated at the same rate as 
                the highest rate of basic pay established for the 
                Senior Executive Service under section 5382 of title 5, 
                United States Code, or, if the Director so determines, 
                at a rate fixed under section 9503 of such title;
                    ``(B) be appointed by the Director without regard 
                to political affiliation;
                    ``(C) report to and be under the general 
                supervision of the Director, but shall not report to, 
                or be subject to supervision by, any other officer of 
                the Federal Emergency Management Agency; and
                    ``(D) consult with the Assistant Administrator for 
                Mitigation or any successor thereto, but shall not 
                report to, or be subject to the general supervision by, 
                the Assistant Administrator for Mitigation or any 
                successor thereto.
            ``(2) Qualifications.--An individual appointed under 
        paragraph (1)(B) shall have a background in customer service, 
        or experience representing insureds, as well as experience in 
        investigations or audits.
            ``(3) Restriction on employment.--An individual may be 
        appointed as the National Flood Insurance Advocate only if such 
        individual was not an officer or employee of the Federal 
        Emergency Management Agency with duties relating to the 
        national flood insurance program during the 2-year period 
        ending with such appointment and such individual agrees not to 
        accept any employment with the Federal Emergency Management 
        Agency for at least 2 years after ceasing to be the National 
        Flood Insurance Advocate. Service as an employee of the 
        National Flood Insurance Advocate shall not be taken into 
        account in applying this paragraph.
            ``(4) Staff.--To the extent amounts are provided pursuant 
        to subsection (n), the National Flood Insurance Advocate may 
        employ such personnel as may be necessary to carry out the 
        duties of the Office.
            ``(5) Independence.--The Director shall not prevent or 
        prohibit the National Flood Insurance Advocate from initiating, 
        carrying out, or completing any audit or investigation, or from 
        issuing any subpoena or summons during the course of any audit 
        or investigation.
            ``(6) Removal.--The President and the Director shall have 
        the power to remove, discharge, or dismiss the National Flood 
        Insurance Advocate. Not later than 15 days after the removal, 
        discharge, or dismissal of the Advocate, the President or the 
        Director shall report to the Committee on Banking of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives on the basis for such removal, discharge, or 
        dismissal.
    ``(b) Functions of Office.--It shall be the function of the Office 
of the Flood Insurance Advocate to--
            ``(1) assist injure under the national flood insurance 
        program in resolving problems with the Federal Emergency 
        Management Agency relating to such program;
            ``(2) identify areas in which such injure have problems in 
        dealings with the Federal Emergency Management Agency relating 
        to such program;
            ``(3) propose changes in the administrative practices of 
        the Federal Emergency Management Agency to mitigate problems 
        identified under paragraph (2);
            ``(4) identify potential legislative, administrative, or 
        regulatory changes which may be appropriate to mitigate such 
        problems;
            ``(5) conduct, supervise, and coordinate--
                    ``(A) systematic and random audits and 
                investigations of insurance companies and associated 
                entities that sell or offer policies under the National 
                Flood Insurance Program to determine whether such 
                insurance companies or associated entities are 
                allocating only flood losses under such insurance 
                policies to the National Flood Insurance Program; and
                    ``(B) audits and investigations to determine if an 
                insurance company or associated entity described under 
                subparagraph (A) is negotiating on behalf of the 
                National Flood Insurance Program with third parties in 
                good faith;
            ``(6) conduct, supervise, and coordinate investigations 
        into the operations of the national flood insurance program for 
        the purpose of--
                    ``(A) promoting economy and efficiency in the 
                administration of such program;
                    ``(B) preventing and detecting fraud and abuse in 
                the program; and
                    ``(C) identifying, and referring to the Attorney 
                General for prosecution, any participant in such fraud 
                or abuse; and
            ``(7) identify and investigate conflicts of interest that 
        undermine the economy and efficiency of the national flood 
        insurance program.
    ``(c) Authority of the National Flood Insurance Advocate.--The 
National Flood Insurance Advocate may--
            ``(1) have access to all records, reports, audits, reviews, 
        documents, papers, recommendations, or other material available 
        to the Director which relate to administration or operation of 
        the national flood insurance program with respect to which the 
        National Flood Insurance Advocate has responsibilities under 
        this section, including information submitted pursuant to 
        Section 128 of this Act;
            ``(2) undertake such investigations and reports relating to 
        the administration or operation of the national flood insurance 
        program as are, in the judgment of the National Flood Insurance 
        Advocate, necessary or desirable;
            ``(3) request such information or assistance as may be 
        necessary for carrying out the duties and responsibilities 
        provided by this section from any Federal, State, or local 
        governmental agency or unit thereof;
            ``(4) request the production of information, documents, 
        reports, answers, records (including phone records), accounts, 
        papers, emails, hard drives, backup tapes, software, audio or 
        visual aides, and any other data and documentary evidence 
        necessary in the performance of the functions assigned to the 
        National Flood Insurance Advocate by this section;
            ``(5) request the testimony of any person in the employ of 
        any insurance company or associated entity participating in the 
        National Flood Insurance Program, described under subsection 
        (b)(5)(A), or any successor to such company or entity, 
        including any member of the board of such company or entity, 
        any trustee of such company or entity, any partner in such 
        company or entity, or any agent or representative of such 
        company or entity;
            ``(6) select, appoint, and employ such officers and 
        employees as may be necessary for carrying out the functions, 
        powers, and duties of the Office subject to the provisions of 
        title 5, United States Code, governing appointments in the 
        competitive service, and the provisions of chapter 51 and 
        subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates;
            ``(7) obtain services as authorized by section 3109 of 
        title 5, United States Code, at daily rates not to exceed the 
        equivalent rate prescribed for the rate of basic pay for a 
        position at level IV of the Executive Schedule; and
            ``(8) to the extent and in such amounts as may be provided 
        in advance by appropriations Acts, enter into contracts and 
        other arrangements for audits, studies, analyses, and other 
        services with public agencies and with private persons, and to 
        make such payments as may be necessary to carry out the 
        provisions of this section.
    ``(d) Additional Duties of the NFIA.--The National Flood Insurance 
Advocate shall--
            ``(1) monitor the coverage and geographic allocation of 
        regional offices of flood insurance advocates;
            ``(2) develop guidance to be distributed to all Federal 
        Emergency Management Agency officers and employees having 
        duties with respect to the national flood insurance program, 
        outlining the criteria for referral of inquiries by insureds 
        under such program to regional offices of flood insurance 
        advocates;
            ``(3) ensure that the local telephone number for each 
        regional office of the flood insurance advocate is published 
        and available to such insureds served by the office; and
            ``(4) establish temporary State or local offices where 
        necessary to meet the needs of qualified insureds following a 
        flood event.
    ``(e) Other Responsibilities.--
            ``(1) Additional requirements relating to certain audits.--
        Prior to conducting any audit or investigation relating to the 
        allocation of flood losses under subsection (b)(5)(A), the 
        National Flood Insurance Advocate may--
                    ``(A) consult with appropriate subject-matter 
                experts to identify the data necessary to determine 
                whether flood claims paid by insurance companies or 
                associated entities on behalf the national flood 
                insurance program reflect damages caused by flooding;
                    ``(B) collect or compile the data identified in 
                subparagraph (A), utilizing existing data sources to 
                the maximum extent practicable; and
                    ``(C) establish policies, procedures, and 
                guidelines for application of such data in all audits 
                and investigations authorized under this section.
            ``(2) Annual reports.--
                    ``(A) Activities.--Not later than December 31 of 
                each calendar year, the National Flood Insurance 
                Advocate shall report to the Committee on Banking, 
                Housing, and Urban Affairs of the Senate and the 
                Committee on Financial Services of the House of 
                Representatives on the activities of the Office of the 
                Flood Insurance Advocate during the fiscal year ending 
                during such calendar year. Any such report shall 
                contain a full and substantive analysis of such 
                activities, in addition to statistical information, and 
                shall--
                            ``(i) identify the initiatives the Office 
                        of the Flood Insurance Advocate has taken on 
                        improving services for insureds under the 
                        national flood insurance program and 
                        responsiveness of the Federal Emergency 
                        Management Agency with respect to such 
                        initiatives;
                            ``(ii) describe the nature of 
                        recommendations made to the Director under 
                        subsection (i);
                            ``(iii) contain a summary of the most 
                        serious problems encountered by such insureds, 
                        including a description of the nature of such 
                        problems;
                            ``(iv) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which action has been taken and the result of 
                        such action;
                            ``(v) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which action remains to be completed and the 
                        period during which each item has remained on 
                        such inventory;
                            ``(vi) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which no action has been taken, the period 
                        during which each item has remained on such 
                        inventory and the reasons for the inaction;
                            ``(vii) identify any Flood Insurance 
                        Assistance Recommendation which was not 
                        responded to by the Director in a timely manner 
                        or was not followed, as specified under 
                        subsection (i);
                            ``(viii) contain recommendations for such 
                        administrative and legislative action as may be 
                        appropriate to resolve problems encountered by 
                        such insureds;
                            ``(ix) identify areas of the law or 
                        regulations relating to the national flood 
                        insurance program that impose significant 
                        compliance burdens on such insureds or the 
                        Federal Emergency Management Agency, including 
                        specific recommendations for remedying these 
                        problems;
                            ``(x) identify the most litigated issues 
                        for each category of such insureds, including 
                        recommendations for mitigating such disputes;
                            ``(xi) identify ways to promote the 
                        economy, efficiency, and effectiveness in the 
                        administration of the national flood insurance 
                        program;
                            ``(xii) identify fraud and abuse in the 
                        national flood insurance program; and
                            ``(xiii) include such other information as 
                        the National Flood Insurance Advocate may deem 
                        advisable.
                    ``(B) Direct submission of report.--Each report 
                required under this paragraph shall be provided 
                directly to the committees identified in subparagraph 
                (A) without any prior review or comment from the 
                Director, the Secretary of Homeland Security, or any 
                other officer or employee of the Federal Emergency 
                Management Agency or the Department of Homeland 
                Security, or the Office of Management and Budget.
            ``(3) Information and assistance from other agencies.--
                    ``(A) In general.--Upon request of the National 
                Flood Insurance Advocate for information or assistance 
                under this section, the head of any Federal agency 
                shall, insofar as is practicable and not in 
                contravention of any statutory restriction or 
                regulation of the Federal agency from which the 
                information is requested, furnish to the National Flood 
                Insurance Advocate, or to an authorized designee of the 
                National Flood Insurance Advocate, such information or 
                assistance.
                    ``(B) Refusal to comply.--Whenever information or 
                assistance requested under this subsection is, in the 
                judgment of the National Flood Insurance Advocate, 
                unreasonably refused or not provided, the National 
                Flood Insurance Advocate shall report the circumstances 
                to the Director without delay.
    ``(f) Compliance With GAO Standards.--In carrying out the 
responsibilities established under this section, the National Flood 
Insurance Advocate shall--
            ``(1) comply with standards established by the Comptroller 
        General of the United States for audits of Federal 
        establishments, organizations, programs, activities, and 
        functions;
            ``(2) establish guidelines for determining when it shall be 
        appropriate to use non-Federal auditors;
            ``(3) take appropriate steps to assure that any work 
        performed by non-Federal auditors complies with the standards 
        established by the Comptroller General as described in 
        paragraph (1); and
            ``(4) take the necessary steps to minimize the publication 
        of proprietary and trade secrets information.
    ``(g) Personnel Actions.--
            ``(1) In general.--The National Flood Insurance Advocate 
        shall have the responsibility and authority to--
                    ``(A) appoint regional flood insurance advocates in 
                a manner that will provide appropriate coverage based 
                upon regional flood insurance program participation; 
                and
                    ``(B) hire, evaluate, and take personnel actions 
                (including dismissal) with respect to any employee of 
                any regional office of a flood insurance advocate 
                described in subparagraph (A).
            ``(2) Consultation.--The National Flood Insurance Advocate 
        may consult with the appropriate supervisory personnel of the 
        Federal Emergency Management Agency in carrying out the 
        National Flood Insurance Advocate's responsibilities under this 
        subsection.
    ``(h) Operation of Regional Offices.--
            ``(1) In general.--Each regional flood insurance advocate 
        appointed pursuant to subsection (d)--
                    ``(A) shall report to the National Flood Insurance 
                Advocate or delegate thereof;
                    ``(B) may consult with the appropriate supervisory 
                personnel of the Federal Emergency Management Agency 
                regarding the daily operation of the regional office of 
                the flood insurance advocate;
                    ``(C) shall, at the initial meeting with any 
                insured under the national flood insurance program 
                seeking the assistance of a regional office of the 
                flood insurance advocate, notify such insured that the 
                flood insurance advocate offices operate independently 
                of any other Federal Emergency Management Agency office 
                and report directly to Congress through the National 
                Flood Insurance Advocate; and
                    ``(D) may, at the flood insurance advocate's 
                discretion, not disclose to the Director contact with, 
                or information provided by, such insured.
            ``(2) Maintenance of independent communications.--Each 
        regional office of the flood insurance advocate shall maintain 
        a separate phone, facsimile, and other electronic communication 
        access.
    ``(i) Flood Insurance Assistance Recommendations.--
            ``(1) Authority to issue.--Upon application filed by a 
        qualified insured with the Office of the Flood Insurance 
        Advocate (in such form, manner, and at such time as the 
        Director shall by regulation prescribe), the National Flood 
        Insurance Advocate may issue a Flood Insurance Assistance 
        Recommendation, if the Advocate finds that the qualified 
        insured is suffering a significant hardship, such as a 
        significant delay in resolving claims where the insured is 
        incurring significant costs as a result of such delay, or where 
        the insured is at risk of adverse action, including the loss of 
        property, as a result of the manner in which the flood 
        insurance laws are being administered by the Director.
            ``(2) Terms of a flood insurance assistance 
        recommendation.--The terms of a Flood Insurance Assistance 
        Recommendation may recommend to the Director that the Director, 
        within a specified time period, cease any action, take any 
        action as permitted by law, or refrain from taking any action, 
        including the payment of claims, with respect to the qualified 
        insured under any other provision of law which is specifically 
        described by the National Flood Insurance Advocate in such 
        recommendation.
            ``(3) Director response.--Not later than 15 days after the 
        receipt of any Flood Insurance Assistance Recommendation under 
        this subsection, the Director shall respond in writing as to--
                    ``(A) whether such recommendation was followed;
                    ``(B) why such recommendation was or was not 
                followed; and
                    ``(C) what, if any, additional actions were taken 
                by the Director to prevent the hardship indicated in 
                such recommendation.
            ``(4) Responsibilities of director.--The Director shall 
        establish procedures requiring a formal response consistent 
        with the requirements of paragraph (3) to all recommendations 
        submitted to the Director by the National Flood Insurance 
        Advocate under this subsection.
    ``(j) Reporting of Potential Criminal Violations.--In carrying out 
the duties and responsibilities established under this section, the 
National Flood Insurance Advocate shall report expeditiously to the 
Attorney General whenever the National Flood Insurance Advocate has 
reasonable grounds to believe there has been a violation of Federal 
criminal law.
    ``(k) Coordination.--
            ``(1) With other federal agencies.--In carrying out the 
        duties and responsibilities established under this section, the 
        National Flood Insurance Advocate--
                    ``(A) shall give particular regard to the 
                activities of the Inspector General of the Department 
                of Homeland Security with a view toward avoiding 
                duplication and insuring effective coordination and 
                cooperation; and
                    ``(B) may participate, upon request of the 
                Inspector General of the Department of Homeland 
                Security, in any audit or investigation conducted by 
                the Inspector General.
            ``(2) With state regulators.--In carrying out any 
        investigation or audit under this section, the National Flood 
        Insurance Advocate shall coordinate its activities and efforts 
        with any State insurance authority that is concurrently 
        undertaking a similar or related investigation or audit.
            ``(3) Avoidance of redundancies in the resolution of 
        problems.--In providing any assistance to a policyholder 
        pursuant to paragraphs (1) and (2) of subsection (b), the 
        National Flood Insurance Advocate shall consult with the 
        Director to eliminate, avoid, or reduce any redundancies in 
        actions that may arise as a result of the actions of the 
        National Flood Insurance Advocate and the claims appeals 
        process described under section 62.20 of title 44, Code of 
        Federal Regulations.
    ``(l) Authority of the Director To Levy Penalties.--The Director 
and the Advocate shall establish procedures to take appropriate action 
against an insurance company, including monetary penalties and removal 
or suspension from the program, when a company refuses to cooperate 
with an investigation or audit under this section or where a finding 
has been made of improper conduct.
    ``(m) Definitions.--For purposes of this subsection:
            ``(1) Associated entity.--The term `associated entity' 
        means any person, corporation, or other legal entity that 
        contracts with the Director or an insurance company to provide 
        adjustment services, benefits calculation services, claims 
        services, processing services, or record keeping services in 
        connection with standard flood insurance policies made 
        available under the national flood insurance program.
            ``(2) Insurance company.--The term `insurance company' 
        refers to any property and casualty insurance company that is 
        authorized by the Director to participate in the Write Your Own 
        program under the national flood insurance program.
            ``(3) National flood insurance advocate.--The term 
        `National Flood Insurance Advocate' includes any designee of 
        the National Flood Insurance Advocate.
            ``(4) Qualified insured.--The term `qualified insured' 
        means an insured under coverage provided under the national 
        flood insurance program under this title.
    ``(n) Funding.--Pursuant to section 1310(a)(8), the Director may 
use amounts from the National Flood Insurance Fund to fund the 
activities of the Office of the Flood Advocate in each of fiscal years 
2009 through 2014, except that the amount so used in each such fiscal 
year may not exceed $5,000,000 and shall remain available until 
expended. Notwithstanding any other provision of this title, amounts 
made available pursuant to this subsection shall not be subject to 
offsetting collections through premium rates for flood insurance 
coverage under this title.''.

SEC. 132. STUDIES AND REPORTS.

    (a) Report on Expanding the National Flood Insurance Program.--Not 
later than 1 year after the date of the enactment of this title, the 
Comptroller General of the United States shall conduct a study and 
submit a report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, on--
            (1) the number of flood insurance policy holders currently 
        insuring--
                    (A) a residential structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of--
                            (i) $250,000 for the structure; and
                            (ii) $100,000 for the contents of such 
                        structure; or
                    (B) a commercial structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of 
                $500,000;
            (2) the increased losses the National Flood Insurance 
        Program would have sustained during the 2004 and 2005 hurricane 
        season if the National Flood Insurance Program had insured all 
        policyholders up to the maximum conforming loan limit for 
        fiscal year 2006 of $417,000, as established under section 
        302(b)(2) of the Federal National Mortgage Association Charter 
        Act (12 U.S.C. 1717(b)(2));
            (3) the availability in the private marketplace of flood 
        insurance coverage in amounts that exceed the current limits of 
        coverage amounts established in section 61.6 of title 44, Code 
        of Federal Regulations; and
            (4) what effect, if any--
                    (A) raising the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of 
                Federal Regulations, would have on the ability of 
                private insurers to continue providing flood insurance 
                coverage; and
                    (B) reducing the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of 
                Federal Regulations, would have on the ability of 
                private insurers to provide sufficient flood insurance 
                coverage to effectively replace the current level of 
                flood insurance coverage being provided under the 
                National Flood Insurance Program.
    (b) Report of the Director on Activities Under the National Flood 
Insurance Program.--
            (1) In general.--The Director shall, on an annual basis, 
        submit a full report on the operations, activities, budget, 
        receipts, and expenditures of the National Flood Insurance 
        Program for the preceding 12-month period to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
            (2) Timing.--Each report required under paragraph (1) shall 
        be submitted to the committees described in paragraph (1) not 
        later than 3 months following the end of each fiscal year.
            (3) Contents.--Each report required under paragraph (1) 
        shall include--
                    (A) the current financial condition and income 
                statement of the National Flood Insurance Fund 
                established under section 1310 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4017), including--
                            (i) premiums paid into such Fund;
                            (ii) policy claims against such Fund; and
                            (iii) expenses in administering such Fund;
                    (B) the number and face value of all policies 
                issued under the National Flood Insurance Program that 
                are in force;
                    (C) a description and summary of the losses 
                attributable to repetitive loss structures;
                    (D) a description and summary of all losses 
                incurred by the National Flood Insurance Program due 
                to--
                            (i) hurricane related damage; and
                            (ii) nonhurricane related damage;
                    (E) the amounts made available by the Director for 
                mitigation assistance under section 1366(e)(5) of the 
                National Flood Insurance Act of 1968 (42 U.S.C. 
                4104c(e)(5)) for the purchase of properties 
                substantially damaged by flood for that fiscal year, 
                and the actual number of flood damaged properties 
                purchased and the total cost expended to purchase such 
                properties;
                    (F) the estimate of the Director as to the average 
                historical loss year, and the basis for that estimate;
                    (G) the estimate of the Director as to the maximum 
                amount of claims that the National Flood Insurance 
                Program would have to expend in the event of a 
                catastrophic year;
                    (H) the average--
                            (i) amount of insurance carried per flood 
                        insurance policy;
                            (ii) premium per flood insurance policy; 
                        and
                            (iii) loss per flood insurance policy; and
                    (I) the number of claims involving damages in 
                excess of the maximum amount of flood insurance 
                available under the National Flood Insurance Program 
                and the sum of the amount of all damages in excess of 
                such amount.
    (c) GAO Study on Pre-FIRM Structures.--Not later than 1 year after 
the date of the enactment of this title, the Comptroller General of the 
United States shall conduct a study and submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives, on 
the--
            (1) composition of the remaining pre-FIRM structures that 
        are explicitly receiving discounted premium rates under section 
        1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4104), including the historical basis for the receipt of such 
        subsidy and whether such subsidy has outlasted its purpose;
            (2) number and fair market value of such structures;
            (3) respective income level of each owner of such 
        structure;
            (4) number of times each such structure has been sold since 
        1968, including specific dates, sales price, and any other 
        information the Secretary determines appropriate;
            (5) total losses incurred by such structures since the 
        establishment of the National Flood Insurance Program compared 
        to the total losses incurred by all structures that are charged 
        a nondiscounted premium rate;
            (6) total cost of foregone premiums since the establishment 
        of the National Flood Insurance Program, as a result of the 
        subsidies provided to such structures;
            (7) annual cost to the taxpayer, as a result of the 
        subsidies provided to such structures;
            (8) the premium income collected and the losses incurred by 
        the National Flood Insurance Program as a result of such 
        explicitly subsidized structures compared to the premium income 
        collected and the losses incurred by such Program as result of 
        structures that are charged a nondiscounted premium rate, on a 
        State-by-State basis; and
            (9) the most efficient way to eliminate the subsidy to such 
        structures.
    (d) GAO Review of FEMA Contractors.--The Comptroller General of the 
United States, in conjunction with the Department of Homeland 
Security's Inspectors general Office, shall--
            (1) conduct a review of the 3 largest contractors the 
        Director uses in administering the National Flood Insurance 
        Program; and
            (2) not later than 18 months after the date of enactment of 
        this title, submit a report on the findings of such review to 
        the Director, the Committee on Banking, Housing, and Urban 
        Affairs of the Senate, and the Committee on Financial Services 
        of the House of Representatives.

SEC. 133. FEASIBILITY STUDY ON PRIVATE REINSURANCE.

    Not later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall conduct and submit a 
report to Congress on--
            (1) the feasibility of requiring the Director, as part of 
        carrying out the responsibilities of the Director under the 
        National Flood Insurance Program, to purchase private 
        reinsurance or retrocessional coverage, in addition to any such 
        reinsurance coverage required under section 1335 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4055), to 
        underlying primary private insurers for losses arising due to 
        flood insurance coverage provided by such insurers;
            (2) the feasibility of repealing the reinsurance 
        requirement under such section 1335, and requiring the 
        Director, as part of carrying out the responsibilities of the 
        Director under the National Flood Insurance Program, to 
        purchase private reinsurance or retrocessional coverage to 
        underlying primary private insurers for losses arising due to 
        flood insurance coverage provided by such insurer; and
            (3) the estimated total savings to the taxpayer of taking 
        each such action described in paragraph (1) or (2).

SEC. 134. POLICY DISCLOSURES.

    (a) In General.--Notwithstanding any other provision of law, in 
addition to any other disclosures that may be required, each policy 
under the National Flood Insurance Program shall state all conditions, 
exclusions, and other limitations pertaining to coverage under the 
subject policy, regardless of the underlying insurance product, in 
plain English, in boldface type, and in a font size that is twice the 
size of the text of the body of the policy.
    (b) Violations.--Any person that violates the requirements of this 
section shall be subject to a fine of not more than $50,000 at the 
discretion of the Director.

SEC. 135. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
              MANAGEMENT CRITERIA.

    Not later than 6 months after the date of the enactment of this 
Act, the Director of the Federal Emergency Management Agency shall 
conduct a study and submit a report to the Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate regarding the impact, 
effectiveness, and feasibility of amending section 1361 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102) to include widely used and 
nationally recognized building codes as part of the floodplain 
management criteria developed under such section, and shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities 
        to administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement 
        in reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction; and
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building code or any applicable 
        local building code provides greater protection from flood 
        damage.

    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Commission on Natural Catastrophe 
Risk Management and Insurance Act of 2008''.

SEC. 202. FINDINGS.

    Congress finds that--
            (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
        United States in 2005, caused, by some estimates, in excess of 
        $200,000,000,000 in total economic losses;
            (2) many meteorologists predict that the United States is 
        in a period of increased hurricane activity;
            (3) the Federal Government and State governments have 
        provided billions of dollars to pay for losses from natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (4) many Americans are finding it increasingly difficult to 
        obtain and afford property and casualty insurance coverage;
            (5) some insurers are not renewing insurance policies, are 
        excluding certain risks, such as wind damage, and are 
        increasing rates and deductibles in some markets;
            (6) the inability of property and business owners in 
        vulnerable areas to obtain and afford property and casualty 
        insurance coverage endangers the national economy and public 
        health and safety;
            (7) almost every State in the United States is at risk of a 
        natural catastrophe, including hurricanes, earthquakes, 
        volcanic eruptions, tsunamis, tornados, flooding, wildfires, 
        droughts, and other natural catastrophes;
            (8) building codes and land use regulations play an 
        indispensable role in managing catastrophe risks, by preventing 
        building in high risk areas and ensuring that appropriate 
        mitigation efforts are completed where building has taken 
        place;
            (9) several proposals have been introduced in Congress to 
        address the affordability and availability of natural 
        catastrophe insurance across the United States, but there is no 
        consensus on what, if any, role the Federal Government should 
        play; and
            (10) an efficient and effective approach to assessing 
        natural catastrophe risk management and insurance is to 
        establish a nonpartisan commission to study the management of 
        natural catastrophe risk, and to require such commission to 
        timely report to Congress on its findings.

SEC. 203. ESTABLISHMENT.

    There is established a nonpartisan Commission on Natural 
Catastrophe Risk Management and Insurance (in this title referred to as 
the ``Commission'').

SEC. 204. MEMBERSHIP.

    (a) Appointment.--The Commission shall be composed of 16 members, 
of whom--
            (1) 2 members shall be appointed by the majority leader of 
        the Senate;
            (2) 2 members shall be appointed by the minority leader of 
        the Senate;
            (3) 2 members shall be appointed by the Speaker of the 
        House of Representatives;
            (4) 2 members shall be appointed by the minority leader of 
        the House of Representatives;
            (5) 2 members shall be appointed by the Chairman of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
            (6) 2 members shall be appointed by the Ranking Member of 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate;
            (7) 2 members shall be appointed by the Chairman of the 
        Committee on Financial Services of the House of 
        Representatives; and
            (8) 2 members shall be appointed by the Ranking Member of 
        the Committee on Financial Services of the House of 
        Representatives.
    (b) Qualification of Members.--
            (1) In general.--Members of the Commission shall be 
        appointed under subsection (a) from among persons who--
                    (A) have expertise in insurance, reinsurance, 
                insurance regulation, policyholder concerns, emergency 
                management, risk management, public finance, financial 
                markets, actuarial analysis, flood mapping and 
                planning, structural engineering, building standards, 
                land use planning, natural catastrophes, meteorology, 
                seismology, environmental issues, or other pertinent 
                qualifications or experience; and
                    (B) are not officers or employees of the United 
                States Government or of any State government.
            (2) Diversity.--In making appointments to the Commission--
                    (A) every effort shall be made to ensure that the 
                members are representative of a broad cross section of 
                perspectives within the United States; and
                    (B) each member of Congress described in subsection 
                (a) shall appoint not more than 1 person from any 
                single primary area of expertise described in paragraph 
                (1)(A) of this subsection.
    (c) Period of Appointment.--
            (1) In general.--Each member of the Commission shall be 
        appointed for the duration of the Commission.
            (2) Vacancies.--A vacancy on the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (d) Quorum.--
            (1) Majority.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number, as determined 
        by the Commission, may hold hearings.
            (2) Approval actions.--All recommendations and reports of 
        the Commission required by this title shall be approved only by 
        a majority vote of all of the members of the Commission.
    (e) Chairperson.--The Commission shall, by majority vote of all of 
the members, select 1 member to serve as the Chairperson of the 
Commission (in this title referred to as the ``Chairperson'').
    (f) Meetings.--The Commission shall meet at the call of its 
Chairperson or a majority of the members.

SEC. 205. DUTIES OF THE COMMISSION.

    The Commission shall examine the risks posed to the United States 
by natural catastrophes, and means for mitigating those risks and for 
paying for losses caused by natural catastrophes, including assessing--
            (1) the condition of the property and casualty insurance 
        and reinsurance markets prior to and in the aftermath of 
        Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major 
        hurricanes that struck the United States in 2004;
            (2) the current condition of, as well as the outlook for, 
        the availability and affordability of insurance in all regions 
        of the country;
            (3) the current ability of States, communities, and 
        individuals to mitigate their natural catastrophe risks, 
        including the affordability and feasibility of such activities;
            (4) the ongoing exposure of the United States to natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (5) the catastrophic insurance and reinsurance markets and 
        the relevant practices in providing insurance protection to 
        different sectors of the American population;
            (6) implementation of a catastrophic insurance system that 
        can resolve key obstacles currently impeding broader 
        implementation of catastrophic risk management and financing 
        with insurance;
            (7) the financial feasibility and sustainability of a 
        national, regional, or other pooling mechanism designed to 
        provide adequate insurance coverage and increased underwriting 
        capacity to insurers and reinsurers, including private-public 
        partnerships to increase insurance capacity in constrained 
        markets;
            (8) methods to promote public insurance policies to reduce 
        losses caused by natural catastrophes in the uninsured sectors 
        of the American population;
            (9) approaches for implementing a public or private 
        insurance scheme for low-income communities, in order to 
        promote risk reduction and insurance coverage in such 
        communities;
            (10) the impact of Federal and State laws, regulations, and 
        policies (including rate regulation, market access 
        requirements, reinsurance regulations, accounting and tax 
        policies, State residual markets, and State catastrophe funds) 
        on--
                    (A) the affordability and availability of 
                catastrophe insurance;
                    (B) the capacity of the private insurance market to 
                cover losses inflicted by natural catastrophes;
                    (C) the commercial and residential development of 
                high-risk areas; and
                    (D) the costs of natural catastrophes to Federal 
                and State taxpayers;
            (11) the present and long-term financial condition of State 
        residual markets and catastrophe funds in high-risk regions, 
        including the likelihood of insolvency following a natural 
        catastrophe, the concentration of risks within such funds, the 
        reliance on post-event assessments and State funding, and the 
        adequacy of rates;
            (12) the role that innovation in financial services could 
        play in improving the affordability and availability of natural 
        catastrophe insurance, specifically addressing measures that 
        would foster the development of financial products designed to 
        cover natural catastrophe risk, such as risked-linked 
        securities;
            (13) the need for strengthened land use regulations and 
        building codes in States at high risk for natural catastrophes, 
        and methods to strengthen the risk assessment and enforcement 
        of structural mitigation and vulnerability reduction measures, 
        such as zoning and building code compliance;
            (14) the benefits and costs of proposed Federal natural 
        catastrophe insurance programs (including the Federal 
        Government providing reinsurance to State catastrophe funds, 
        private insurers, or other entities), specifically addressing 
        the costs to taxpayers, tax equity considerations, and the 
        record of other government insurance programs (particularly 
        with regard to charging actuarially sound prices);
            (15) the ability of the United States private insurance 
        market--
                    (A) to cover insured losses caused by natural 
                catastrophes, including an estimate of the maximum 
                amount of insured losses that could be sustained during 
                a single year and the probability of natural 
                catastrophes occurring in a single year that would 
                inflict more insured losses than the United States 
                insurance and reinsurance markets could sustain; and
                    (B) to recover after covering substantial insured 
                losses caused by natural catastrophes;
            (16) the impact that demographic trends could have on the 
        amount of insured losses inflicted by future natural 
        catastrophes;
            (17) the appropriate role, if any, for the Federal 
        Government in stabilizing the property and casualty insurance 
        and reinsurance markets; and
            (18) the role of the Federal, State, and local governments 
        in providing incentives for feasible risk mitigation efforts.

SEC. 206. REPORT.

    (a) In General.--Not later than 9 months after the date of 
enactment of this title, the Commission shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives a final report 
containing--
            (1) a detailed statement of the findings and assessments 
        conducted by the Commission pursuant to section 205; and
            (2) any recommendations for legislative, regulatory, 
        administrative, or other actions at the Federal, State, or 
        local levels that the Commission considers appropriate, in 
        accordance with the requirements of section 205.
    (b) Extension of Time.--The Commission may request Congress to 
extend the period of time for the submission of the report required 
under subsection (a) for an additional 3 months.

SEC. 207. POWERS OF THE COMMISSION.

    (a) Meetings; Hearings.--The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and receive such 
evidence as the Commission considers necessary to carry out the 
purposes of this title. Members may attend meetings of the Commission 
and vote in person, via telephone conference, or via video conference.
    (b) Authority of Members or Agents of the Commission.--Any member 
or agent of the Commission may, if authorized by the Commission, take 
any action which the Commission is authorized to take by this title.
    (c) Obtaining Official Data.--
            (1) Authority.--Notwithstanding any provision of section 
        552a of title 5, United States Code, the Commission may secure 
        directly from any department or agency of the United States any 
        information necessary to enable the Commission to carry out 
        this title.
            (2) Procedure.--Upon request of the Chairperson, the head 
        of such department or agency shall furnish to the Commission 
        the information requested.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (e) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, any administrative support 
services necessary for the Commission to carry out its responsibilities 
under this title.
    (f) Acceptance of Gifts.--The Commission may accept, hold, 
administer, and utilize gifts, donations, and bequests of property, 
both real and personal, for the purposes of aiding or facilitating the 
work of the Commission. The Commission shall issue internal guidelines 
governing the receipt of donations of services or property.
    (g) Volunteer Services.--Notwithstanding the provisions of section 
1342 of title 31, United States Code, the Commission may accept and 
utilize the services of volunteers serving without compensation. The 
Commission may reimburse such volunteers for local travel and office 
supplies, and for other travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code.
    (h) Federal Property and Administrative Services Act of 1949.--
Subject to the Federal Property and Administrative Services Act of 
1949, the Commission may enter into contracts with Federal and State 
agencies, private firms, institutions, and individuals for the conduct 
of activities necessary to the discharge of its duties and 
responsibilities.
    (i) Limitation on Contracts.--A contract or other legal agreement 
entered into by the Commission may not extend beyond the date of the 
termination of the Commission.

SEC. 208. COMMISSION PERSONNEL MATTERS.

    (a) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (b) Subcommittees.--The Commission may establish subcommittees and 
appoint members of the Commission to such subcommittees as the 
Commission considers appropriate.
    (c) Staff.--Subject to such policies as the Commission may 
prescribe, the Chairperson may appoint and fix the pay of such 
additional personnel as the Chairperson considers appropriate to carry 
out the duties of the Commission. The Commission shall confirm the 
appointment of the executive director by majority vote of all of the 
members of the Commission.
    (d) Applicability of Certain Civil Service Laws.--Staff of the 
Commission may be--
            (1) appointed without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service; and
            (2) paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates, except that an 
        individual so appointed may not receive pay in excess of the 
        annual rate of basic pay prescribed for GS-15 of the General 
        Schedule under section 5332 of that title.
    (e) Experts and Consultants.--In carrying out its objectives, the 
Commission may procure temporary and intermittent services of 
consultants and experts under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for GS-15 of the General 
Schedule under section 5332 of that title.
    (f) Detail of Government Employees.--Upon request of the 
Chairperson, any Federal Government employee may be detailed to the 
Commission to assist in carrying out the duties of the Commission--
            (1) on a reimbursable basis; and
            (2) such detail shall be without interruption or loss of 
        civil service status or privilege.

SEC. 209. TERMINATION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits its report under section 206.

SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission, such 
sums as may be necessary to carry out this title, to remain available 
until expended.

                        TITLE III--MISCELLANEOUS

SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, SIOUX FALLS, SOUTH DAKOTA.

    The project for flood control, Big Sioux River and Skunk Creek, 
Sioux Falls, South Dakota, authorized by section 101(a)(28) of the 
Water Resources Development Act of 1996 (110 Stat. 3666), is modified 
to authorize the Secretary to reimburse the non-Federal interest for 
funds advanced by the non-Federal interest for the Federal share of the 
project, only if additional Federal funds are appropriated for that 
purpose.

SEC. 302. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC PETROLEUM 
              RESERVE.

    (a) In General.--Except as provided in subsection (b) and 
notwithstanding any other provision of law, during the period beginning 
on the date of enactment of this Act and ending on December 31, 2008--
            (1) the Secretary of the Interior shall suspend acquisition 
        of petroleum for the Strategic Petroleum Reserve through the 
        royalty-in-kind program; and
            (2) the Secretary of Energy shall suspend acquisition of 
        petroleum for the Strategic Petroleum Reserve through any other 
        acquisition method.
    (b) Resumption.--Not earlier than 30 days after the date on which 
the President notifies Congress that the President has determined that 
the weighted average price of petroleum in the United States for the 
most recent 90-day period is $75 or less per barrel--
            (1) the Secretary of the Interior may resume acquisition of 
        petroleum for the Strategic Petroleum Reserve through the 
        royalty-in-kind program; and
            (2) the Secretary of Energy may resume acquisition of 
        petroleum for the Strategic Petroleum Reserve through any other 
        acquisition method.
    (c) Existing Contracts.--In the case of any oil scheduled to be 
delivered to the Strategic Petroleum Reserve pursuant to a contract 
entered into by the Secretary of Energy prior to, and in effect on, the 
date of enactment of this Act, the Secretary shall, to the maximum 
extent practicable, negotiate a deferral of the delivery of the oil for 
a period of not less than 1 year, in accordance with procedures of the 
Department of Energy in effect on the date of enactment of this Act for 
deferrals of oil.

            Attest:

                                                             Secretary.
110th CONGRESS

  2d Session

                               H.R. 3121

_______________________________________________________________________

                               AMENDMENT