110th CONGRESS
2d Session
H. R. 3121
In the Senate of the United
States,
May 13, 2008.
Amendment:
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
Strike out all
after the enacting clause and
insert:
1.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.
<enum>I</enum><header>Flood Insurance Reform
and Modernization</header>
<section id="id6647F2ADCF464408B5382280552E33BF"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Flood Insurance Reform and
Modernization Act of 2008</short-title></quote>.</text>
</section><section id="id8AF88350633440EB80BAB2F02CB01AD0"><enum>102.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph id="IDb5c113ccd8d54e3fafc2d3ae55a248e4"><enum>(1)</enum><text>the flood insurance
claims resulting from the hurricane season of 2005 will likely exceed all
previous claims paid by the National Flood Insurance Program;</text>
</paragraph><paragraph id="IDcb50301cf81a4fe097220246612ab7d0"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="id9A9C7872432D4DA487F08B850DC02C12"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="ID9e4e3528f6c8486f86fe213b1fa7f3d3"><enum>(4)</enum><text>the flood insurance
program must be strengthened to ensure it can pay future claims;</text>
</paragraph><paragraph id="ID7356c79a6e484d608a92d9c0d372e641"><enum>(5)</enum><text>while flood insurance is
mandatory in the 100-year floodplain, substantial flooding occurs outside of
existing special flood hazard areas;</text>
</paragraph><paragraph id="idA06A38EC2F78447E94E7783BA86777D2"><enum>(6)</enum><text>recent events throughout
the country involving areas behind man-made structures, known as
<quote>residual risk</quote> areas, have produced catastrophic losses;</text>
</paragraph><paragraph id="id4195DF5D5376482F802D8C47E4E4C578"><enum>(7)</enum><text>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</text>
</paragraph><paragraph id="id0949D455C21D49E8A76F2533CE05D412"><enum>(8)</enum><text>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.</text>
</paragraph></section><section id="id8EDF1A865DBA494F9CD5E2760EFD18C2"><enum>103.</enum><header>Definitions</header>
<subsection id="id76974EC06E954EA898B409E90F0979C7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In this title, the
following definitions shall apply:</text>
<paragraph id="id6F8EE62C8D8840E7A517AFCB38BD49BC"><enum>(1)</enum><header>Director</header><text display-inline="yes-display-inline">The term <term>Director</term> means the
Administrator of the Federal Emergency Management Agency.</text>
</paragraph><paragraph id="id09B5AE3F54DD49E59C1FDA63707C26D9"><enum>(2)</enum><header>National Flood
Insurance Program</header><text>The term <term>National Flood Insurance
Program</term> means the program established under the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4011">42 U.S.C. 4011 et seq.</external-xref>).</text>
</paragraph><paragraph id="id14543D790F9A410A924829B7D90DC271"><enum>(3)</enum><header>100-year
floodplain</header><text>The term <term>100-year floodplain</term> 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.</text>
</paragraph><paragraph id="id8CA3FDEF610E47A0B7D3EAF630D5622F"><enum>(4)</enum><header>500-year
floodplain</header><text>The term <term>500-year floodplain</term> 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.</text>
</paragraph><paragraph id="id87A1749A66C346099C65A408D4E13D00"><enum>(5)</enum><header>Write Your
Own</header><text>The term <term>Write Your Own</term> 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.</text>
</paragraph></subsection><subsection id="id0D9AB4585FEC46648ABFEBCCBF12D27A"><enum>(b)</enum><header>Common
terminology</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4121">42 U.S.C. 4121</external-xref>).</text>
</subsection></section><section id="idEEF3C712852C43EFAFD6CF5ED10FFEAA"><enum>104.</enum><header>Extension of National
Flood Insurance Program</header><text display-inline="no-display-inline">Section 1319 of the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4026">42 U.S.C. 4026</external-xref>), is amended by striking <quote>2008</quote> and
inserting <quote>2013.</quote>.</text>
</section><section id="id026DB2DF42224A46A4EF2A0A8122A1AC"><enum>105.</enum><header>Availability of
insurance for multifamily properties</header><text display-inline="no-display-inline">Section 1305 of the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012">42 U.S.C. 4012</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0D3B78764F9E46FEB0149F25F3096254" reported-display-style="italic" style="OLC">
<subsection id="id13BC85F50B7C49ACAAA40F497BF93734"><enum>(d)</enum><header>Availability of
insurance for multifamily properties</header>
<paragraph id="id5C64EACFFD784B059A8F21B1D390A8D2"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id82DCB87F87C04D5D80C6F5A0EACFCC30"><enum>(2)</enum><header>Rule of
construction</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idCE8383F638924D12804E508A1E1A317D"><enum>106.</enum><header>Reform of premium rate
structure</header>
<subsection id="id8539069C3060435BB28710D8CB5617F0"><enum>(a)</enum><header>To exclude certain
properties from receiving subsidized premium rates</header>
<paragraph id="id084C3A395BE047D1B58589ACD271B6A0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1307 of the
National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4014">42 U.S.C. 4014</external-xref>) is amended—</text>
<subparagraph id="id867813840C7242DFAE0DDD96EE490868"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause id="id84344E22993942F3883130582AF1EBAF"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>;
and</quote> and inserting a semicolon;</text>
</clause><clause id="id9B2EF1717E6C4BB6A8ACB54885FFA48F"><enum>(ii)</enum><text>in paragraph (3), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</clause><clause id="idE295E2A9B06C4FC692B93282F59CBF1F"><enum>(iii)</enum><text>by adding at the end
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id29B36BFB07384A7A826923D3E816C4A4" reported-display-style="italic" style="OLC">
<paragraph id="id4D3B8BADEF29494C9D64876641B59A86"><enum>(4)</enum><text>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—</text>
<subparagraph id="id1F727D3FEC1B4BF8987B53520B902FB5"><enum>(A)</enum><text>any property which is not
the primary residence of an individual;</text>
</subparagraph><subparagraph id="idC87E7655E9CA487BADC1E395ECA6BBD8"><enum>(B)</enum><text>any severe repetitive
loss property, as defined in section 1361A(b);</text>
</subparagraph><subparagraph id="id0F4B4C52D2654CF0AC93B16D29AFD9E8"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="id955857A7DC3C4745A26B224DD10628F2"><enum>(D)</enum><text>any business property;
and</text>
</subparagraph><subparagraph id="id38CBC04FD7274800BEE31CAED0BFD1D1"><enum>(E)</enum><text>any property which on or
after the date of enactment of the <short-title>Flood
Insurance Reform and Modernization Act of 2008</short-title> has experienced or
sustained—</text>
<clause id="id6EEEA15E14EC4B26BEDC5FCB517B3721"><enum>(i)</enum><text>substantial damage
exceeding 50 percent of the fair market value of such property; or</text>
</clause><clause id="id480A293E15CA45A0B8C9A7050F6DB196"><enum>(ii)</enum><text>substantial improvement
exceeding 30 percent of the fair market value of such
property.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="idF21FB9F86D6C41418FD5880047EA8357"><enum>(B)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF0CA1D0C70A84199B946548F535A5855" reported-display-style="italic" style="OLC">
<subsection id="id23E193DD674E4802A670A3BF9F09B510"><enum>(g)</enum><header>No extension of subsidy
to new policies or lapsed policies</header><text>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—</text>
<paragraph id="id2F9FF914B87C42C688A52A9AB22A20F2"><enum>(1)</enum><text>any property not insured
by the flood insurance program as of the date of enactment of the
<short-title>Flood Insurance Reform and Modernization Act
of 2008</short-title>;</text>
</paragraph><paragraph id="idFB895AE4B92142C0A4F4A4D6A0D2E711"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="id04C2D8A2446144A0A98CDDA2E890A58D"><enum>(3)</enum><text>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—</text>
<subparagraph id="id300AB45C831048DC8E6A3E86BDB65800"><enum>(A)</enum><text>following a major
disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5122">42 U.S.C. 5122</external-xref>); or</text>
</subparagraph><subparagraph id="id8FE52052CCFC4C8B8BB48C01E57F8689"><enum>(B)</enum><text>in connection
with—</text>
</subparagraph></paragraph></subsection></quoted-block>
<quoted-block changed="added" display-inline="no-display-inline" id="idDFFA2681962E48E78507F46347462A5D" reported-display-style="italic" style="OLC">
<clause id="idAC9DEF5E05454811AD70ED16E2316F3D"><enum>(i)</enum><text>a repetitive loss
property; or</text>
</clause><clause id="id4E4B9A881743434FB7D8D4D5F5BDA27C"><enum>(ii)</enum><text>a severe repetitive loss
property, as that term is defined under section
1361A.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id09ABCB43456648B8B9BEA5F8DD52AD87"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by paragraph (1) shall become effective
90 days after the date of the enactment of this title.</text>
</paragraph></subsection><subsection id="idC1BDFCD071CF498A808888203E1922C1"><enum>(b)</enum><header>Increase in annual
limitation on premium increases</header><text display-inline="yes-display-inline">Section 1308(e) of the National Flood
Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4015">42 U.S.C. 4015(e)</external-xref>) is amended—</text>
<paragraph id="idF5C3FCF938F64830992821AFA97A9411"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>under this title for any
properties within any single</quote> and inserting the following: “under this
title for any properties—</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id69686816C3ED4C2D865346B690CBA1D7" reported-display-style="italic" style="OLC">
<paragraph id="id2C5C57C7D9744A2A81B95DCE7E3ED759"><enum>(1)</enum><text display-inline="yes-display-inline">within any
single</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id9431624107D640E8AF14DF0187CDCF35"><enum>(2)</enum><text>by striking <quote>10
percent</quote> and inserting <quote>15 percent</quote>; and</text>
</paragraph><paragraph id="id8EA9770DE5FC44E8AE6F0AADF528707C"><enum>(3)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting the following: “; and</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE7B7B33F23F14DAAB81E944273353954" reported-display-style="italic" style="OLC">
<paragraph id="id9E9860AB3D33493EA2D76C6D3F78DC06"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id2D148AA572474ECD8697746CB895B316"><enum>107.</enum><header>Mandatory coverage
areas</header>
<subsection id="id3F87A961A9A84D11841481EA80E827E9"><enum>(a)</enum><header>Special flood hazard
areas</header><text>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.</text>
</subsection><subsection id="id53598EBDAF8343D88052E268E49878AC"><enum>(b)</enum><header>Residual risk
areas</header><text>The regulations required by subsection (a) shall—</text>
<paragraph id="idAA77F69FD6B24088BB55A93357A95BF7"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="idCD3B83C6361041AF8DE4BA6AB1FB5ED8"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="id29C3E0C8A9E64D0C83CF7642835DC695"><enum>(c)</enum><header>Mandatory participation
in national flood insurance program</header>
<paragraph id="id572E53D89A0F4FD7A9B943FE87B6F0C5"><enum>(1)</enum><header>In
general</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a</external-xref>, 4106).</text>
</paragraph><paragraph id="idE9BDE7DD45284CF6928B524967F3CEDD"><enum>(2)</enum><header>Limitation</header><text>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.</text>
</paragraph><paragraph id="id8F383142D3B34FBCA3C73D3B6C37210B"><enum>(3)</enum><header>Accurate
pricing</header><text>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.</text>
</paragraph></subsection><subsection id="id29267CFF3C62401F8512AD2376890009"><enum>(d)</enum><header>Decertification</header><text>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.</text>
</subsection></section><section id="id5FFB0743826D4C78932738104967D6EE"><enum>108.</enum><header>Premium
adjustment</header><text display-inline="no-display-inline">Section 1308 of the
National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4015">42 U.S.C. 4015</external-xref>) is amended by adding at
the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id15667796972C4B71898D15FC63318976" reported-display-style="italic" style="OLC">
<subsection id="id405C391C3164412DAD1AB286CA11D460"><enum>(g)</enum><header>Premium adjustment To
reflect current risk of flood</header><text display-inline="yes-display-inline">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 <short-title>Flood Insurance Reform and Modernization Act of
2008</short-title>, 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.</text>
</subsection><subsection id="id812F069780894F7AAF793A9E59774651"><enum>(h)</enum><header>Use of maps to
establish rates for certain counties</header>
<paragraph id="id556D0D98E89243848831207EB3D7A40D"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="idB01E582E10C24504AAF420224500B7BE"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="idBAB63AF446E24D80BBE6E594DFAD854E"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="id552045748DC247C38702C4D0468273EA"><enum>(2)</enum><header>Rule of
construction</header><text>For purposes of this subsection, the term
<quote>area</quote> 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.”.</text>
</paragraph></subsection></quoted-block>
</section><section id="id3699BDFC6EB34B068CCE25B84EE4822F"><enum>109.</enum><header>State chartered
financial institutions</header><text display-inline="no-display-inline">Section
1305(c) of the National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012">42 U.S.C. 4012(c)</external-xref>) is
amended—</text>
<paragraph id="id86BEE639CBB841DAAEA49638F936796C"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>;
and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="idCFACD6DF6DB5490BA99BFA40AF6036DD"><enum>(2)</enum><text>in paragraph (2), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBB9AA4CF82344A3B8BE41785869F468C"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD261789C306F41A39B2F0B57CAB564DD" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id590A48C05F624FEBA0E7A7720308817E"><enum>(3)</enum><text>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).”.</text>
</paragraph></quoted-block>
</paragraph></section><section id="id4EE6B7B7812C4EEAA7791F70BA42AA73"><enum>110.</enum><header>Enforcement</header><text display-inline="no-display-inline">Section 102(f)(5) of the Flood Disaster
Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(f)(5)</external-xref>) is amended—</text>
<paragraph id="idC7131B9ADBBE406FA3A94AA8953D46EF"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>$350</quote> and inserting <quote>$2,000</quote>; and</text>
</paragraph><paragraph id="id23FC91E2C78C44A3B00F22B873A00ABC"><enum>(2)</enum><text>by striking the second
sentence.</text>
</paragraph></section><section id="idCB2B31D54CE6485DB5F49698BDA0149B"><enum>111.</enum><header>Escrow of flood
insurance payments</header>
<subsection id="id7AA8F629C97A41E7AF2FFD99CD6E0EDE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 102(d) of the
Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(d)</external-xref>) is amended—</text>
<paragraph id="idF68CE37E525242E797F6EA590D843655"><enum>(1)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD8691B843D2F4780B774ED6DC3CD3F0B" reported-display-style="italic" style="OLC">
<paragraph id="id9C7A0A235D1B4E95B282756137735BCD"><enum>(1)</enum><header>Regulated lending
institutions</header>
<subparagraph id="id9EFAC0184B4F442595DD4D0E1A15A49F"><enum>(A)</enum><header>Federal entities
responsible for lending regulations</header><text>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.</text>
</subparagraph><subparagraph id="idEB662BDED56D4A3A8EABD45254A05CD5"><enum>(B)</enum><header>State entities
responsible for lending regulations</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id79BE03CC4AE844609212A698E32B9B1B"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id70042D6982BB40EA8EF5D8D76931A868" reported-display-style="italic" style="OLC">
<paragraph id="idBBB9934EE12F4B37987CC98E4DE48F92"><enum>(6)</enum><header>Notice upon loan
termination</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idCCBA4CCC271E47A5B7E397A99421BE61"><enum>(b)</enum><header>Applicability</header><text>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.</text>
</subsection></section><section id="idC3BF81F03EB24569A921DBF787F73EFB"><enum>112.</enum><header>Borrowing authority
debt forgiveness</header>
<subsection id="idDC8CCA7256704B459150D254AC1EB35C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4016">42 U.S.C. 4016</external-xref>), 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.</text>
</subsection><subsection id="id5CDAA3FF07504D258B20E495DC329ABE"><enum>(b)</enum><header>Certification</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="id3EB64F38AA1745E0A0265324BFCB3E2B"><enum>(1)</enum><text display-inline="yes-display-inline">have been otherwise obligated to pay claims
under the National Flood Insurance Program; and</text>
</paragraph><paragraph id="idC5F0E83784C340C398635AA66B564C95"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="id10BCE3D48E584119995AE42F081BFC3F"><enum>(c)</enum><header>Decrease in borrowing
authority</header><text>The first sentence of subsection (a) of section 1309 of
the National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4016">42 U.S.C. 4016(a)</external-xref>) is amended by
striking <quote>; except that, through September 30, 2008, clause (2) of this
sentence shall be applied by substituting <quote>$20,775,000,000</quote> for
<quote>$1,500,000,000</quote></quote>.</text>
</subsection></section><section id="id21A901216BA44888BF618678ED171C84"><enum>113.</enum><header>Minimum deductibles
for claims under the National Flood Insurance Program</header><text display-inline="no-display-inline">Section 1312 of the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4019">42 U.S.C. 4019</external-xref>) is amended—</text>
<paragraph id="id0C8EED3F89C348EA8D6BBFC976ECC96A"><enum>(1)</enum><text>by striking <quote>The
Director is</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA86C256DD6564D7487292D4BEA530198" reported-display-style="italic" style="OLC">
<subsection id="idCA2F8FCE171445EE9FBAFEB07B2F9068"><enum>(a)</enum><header>In
general</header><text>The Director is</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id00DFB56ACA354C2194BA38A133CD6936"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id80760142C13F46AFA4AB2B27FD5DF5A0" reported-display-style="italic" style="OLC">
<subsection id="idE9651C829B314496949B7CA14419C290"><enum>(b)</enum><header>Minimum annual
deductible</header>
<paragraph id="id865DB92DDCF94BB6BD40D91AAF8BEDC2"><enum>(1)</enum><header>Pre-firm
properties</header><text>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—</text>
<subparagraph id="id2D28FF352E064221B9514CA0AA7A5C85"><enum>(A)</enum><text>$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</text>
</subparagraph><subparagraph id="id5697DD59CC0548A58F51A52C23D0F01B"><enum>(B)</enum><text>$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.</text>
</subparagraph></paragraph><paragraph id="id1C3E7B1F9879478FA5B7161FCA9766A9"><enum>(2)</enum><header>Post-firm
properties</header><text>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—</text>
<subparagraph id="id12B4B0EF1194448BA6159CE06F4A058D"><enum>(A)</enum><text>$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</text>
</subparagraph><subparagraph id="idB3382835E65D4C728C19CD082E87E7B1"><enum>(B)</enum><text>$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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idD734141E85D94FE69240C5926CAFAB4E"><enum>114.</enum><header>Considerations in
determining chargeable premium rates</header><text display-inline="no-display-inline">Section 1308 of the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4015">42 U.S.C. 4015(b)</external-xref>) is amended—</text>
<paragraph id="idF6B7D6DC4C634FD88B540001D8E52EAC"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>,
after consultation with</quote> and all that follows through <quote>by
regulation</quote> and inserting <quote>prescribe, after providing
notice</quote>;</text>
</paragraph><paragraph id="id8B9BA6EA30304722B1950194B59785BC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph id="id97B00C2EFA024B4E864E5FD289A36002"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking the period at
the end and inserting a semicolon;</text>
</subparagraph><subparagraph id="id0EDE766CB4B449159C9027E5DF990AC2"><enum>(B)</enum><text>in paragraph (2), by
striking the comma at the end and inserting a semicolon;</text>
</subparagraph><subparagraph id="id07B51E0FB1234715BACE1D6670407101"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>,
and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="idF4763D14E1774672B665A04547CBE956"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking the period
and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="idDDB7C3371ECE4BB6906D3243E9643F84"><enum>(E)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFC4F692E64BE4D59B7AD175C3BA5B428" reported-display-style="italic" style="OLC">
<paragraph id="id148BC1B9037D4C86836E85D6538215CA"><enum>(5)</enum><text>adequate, on the basis of
accepted actuarial principles, to cover the average historical loss year
obligations incurred by the National Flood Insurance
Fund.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id1F09EDCEF1FF49AE8E4A546A299351F7"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD86F0FF4B07F4883BE2F965E612AAFA8" reported-display-style="italic" style="OLC">
<subsection id="id7D7453D6203E430E8D8A8EBA29602FC5"><enum>(h)</enum><header>Rule of
construction</header><text>For purposes of this section, the calculation of an
<quote>average historical loss year</quote>—</text>
<paragraph id="id17141B61E1964D8097E199ACFB688FA7"><enum>(1)</enum><text>includes catastrophic
loss years; and</text>
</paragraph><paragraph id="ID5ac734c180da40b1ace3c64573e22233"><enum>(2)</enum><text>shall be computed in
accordance with generally accepted actuarial
principles.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id372CB6F46CCF4E08BA820269944A942F"><enum>115.</enum><header>Reserve
fund</header><text display-inline="no-display-inline">Chapter I of the National
Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4011">42 U.S.C. 4011 et seq.</external-xref>) is amended by inserting
after section 1310 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idCDC4B87C6D1E49E0864AD11B438FE904" reported-display-style="italic" style="OLC">
<section id="id54C6C0D3618A4CFEA166318DDD1A0A8B"><enum>1310A.</enum><header>Reserve
Fund</header>
<subsection id="id33F079DDBCD14105B00266E79B8C51C7"><enum>(a)</enum><header>Establishment of
Reserve Fund</header><text>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 <quote>Reserve Fund</quote>) which shall—</text>
<paragraph id="id509E856B69E74EB7A18C194D4B506527"><enum>(1)</enum><text>be an account separate
from any other accounts or funds available to the Director; and</text>
</paragraph><paragraph id="idBE84D763D85F481EBF7E3DBE049D22D0"><enum>(2)</enum><text>be available for meeting
the expected future obligations of the flood insurance program.</text>
</paragraph></subsection><subsection id="id96B8B291D9C74A8C8C51E52B44D99F9C"><enum>(b)</enum><header>Reserve
ratio</header><text>Subject to the phase-in requirements under subsection (d),
the Reserve Fund shall maintain a balance equal to—</text>
<paragraph id="id3E51CBFA2D584B2ABB606F48E5B1ED83"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="id6ABE4713820649D981AC23ADA438ADD9"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="id6C8275F9C78549C59BCA275C13046392"><enum>(c)</enum><header>Maintenance of reserve
ratio</header>
<paragraph id="idB66355E0AB1A435CABECCD95C314E918"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="id1CADACA5D7C5407A86CBD8354FAD94FC"><enum>(A)</enum><text>to maintain the reserve
ratio required under subsection (b); and</text>
</subparagraph><subparagraph id="id67FE30968F244D118FDB75D69A5DBC94"><enum>(B)</enum><text>to achieve such reserve
ratio, if the actual balance of such reserve is below the amount required under
subsection (b).</text>
</subparagraph></paragraph><paragraph id="idEB2A10DECABA40EEA878DA4CBC8D31FD"><enum>(2)</enum><header>Considerations</header><text>In
exercising the authority granted under paragraph (1), the Director shall
consider—</text>
<subparagraph id="id4AC5F47B31774B9384CF3C2C547F0957"><enum>(A)</enum><text>the expected operating
expenses of the Reserve Fund;</text>
</subparagraph><subparagraph id="idE3FCE079CF2F4290AF445BE4D2F75359"><enum>(B)</enum><text>the insurance loss
expenditures under the flood insurance program;</text>
</subparagraph><subparagraph id="id0DC5A8020A9B4B31816ADD03046F9C8B"><enum>(C)</enum><text>any investment income
generated under the flood insurance program; and</text>
</subparagraph><subparagraph id="id812AB03A46444547BCED8461CFDB382A"><enum>(D)</enum><text>any other factor that the
Director determines appropriate.</text>
</subparagraph></paragraph><paragraph id="id64B41D9216F8477E80B9C0D69150CFC4"><enum>(3)</enum><header>Limitations</header><text>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.</text>
</paragraph></subsection><subsection id="id9FB9EBEC3963480695E29416577339A1"><enum>(d)</enum><header>Phase-In
requirements</header><text>The phase-in requirements under this subsection are
as follows:</text>
<paragraph id="id4D488EC3A47A434096AFF3AF69D57A2F"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="idDE75C89C315C41BD979F5DE7551A26C7"><enum>(2)</enum><header>Amount
satisfied</header><text>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.</text>
</paragraph><paragraph id="id0EABAD20DAF34D75AD4611B72695C1F1"><enum>(3)</enum><header>Exception</header><text>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).</text>
</paragraph></subsection><subsection id="id77B1DA382D88438084FC61F666B6513B"><enum>(e)</enum><header>Limitation on reserve
ratio</header><text>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—</text>
<paragraph id="id0F03C4780F6C4AF6976EA74DAB5F17D1"><enum>(1)</enum><text>describes and details the
specific concerns of the Director regarding such consequences;</text>
</paragraph><paragraph id="id0F35A59C5BDD489DBFC2A4EF03CDEDF4"><enum>(2)</enum><text>demonstrates how such
consequences would harm the long-term financial soundness of the flood
insurance program; and</text>
</paragraph><paragraph id="id311BAA9508D44FA5A49E13846ED97028"><enum>(3)</enum><text>indicates the maximum
attainable reserve ratio for that particular fiscal
year.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id8F91C6CF36C64B0283851C46B2AA952F"><enum>116.</enum><header>Repayment plan for
borrowing authority</header><text display-inline="no-display-inline">Section
1309 of the National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4016">42 U.S.C. 4016</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id89CDB380698E403182FFAE1092B16C68" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id243D936FC08A435A9A1E2BD3A50F8A6D"><enum>(c)</enum><text display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3DE3CCE6A2504CFFBC0D16C7FB1A6BE3"><enum>(1)</enum><text display-inline="yes-display-inline">Secretary of the Treasury;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7D1C9929C6C1419F845586B6B4EE3A61"><enum>(2)</enum><text display-inline="yes-display-inline">Committee on Banking, Housing, and Urban
Affairs of the Senate; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA367D32A3B3A415B91A4CDAA18A7EC59"><enum>(3)</enum><text display-inline="yes-display-inline">Committee on Financial Services of the
House of Representatives.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD39C0AB61D00491694DCAAE619D4A18B"><enum>(d)</enum><text display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id6C082B71A162436DBEBE7F881979A3C8"><enum>(1)</enum><text display-inline="yes-display-inline">Secretary of the Treasury;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id081005FD36B84872968B8104D2FA069C"><enum>(2)</enum><text display-inline="yes-display-inline">Committee on Banking, Housing, and Urban
Affairs of the Senate; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE7DDBE50BDB4498DBB120702F145CF88"><enum>(3)</enum><text display-inline="yes-display-inline">Committee on Financial Services of the
House of
Representatives.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id8B612BDE8C9C4D849B8DAB20C584B213"><enum>117.</enum><header>Payment of condominium
claims</header><text display-inline="no-display-inline">Section 1312 of the
National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4019">42 U.S.C. 4019</external-xref>), as amended by section
113, is further amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6A5737A257D5418C8D5C03E6EFADFBA1" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id6EA809E2BA454885A4893CAF534FB9E3"><enum>(c)</enum><header>Payment of claims to
condominium owners</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id91CA4431BD9C46ABBAFBBA71F606196C"><enum>118.</enum><header>Technical Mapping
Advisory Council</header>
<subsection commented="no" display-inline="no-display-inline" id="id33F92DEBB238495E9138B58B6E61CD98"><enum>(a)</enum><header>Establishment</header><text>There
is established a council to be known as the Technical Mapping Advisory Council
(in this section referred to as the <quote>Council</quote>).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC5A5E52087294EE183C538AA2E48BF34"><enum>(b)</enum><header>Membership</header>
<paragraph commented="no" display-inline="no-display-inline" id="id00E6D2EFA83649B09EBC9281CA500A7F"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="ID696eaaed4ce54388b784183bb6744567"><enum>(A)</enum><text>the Under Secretary of
Commerce for Oceans and Atmosphere (or the designee thereof);</text>
</subparagraph><subparagraph id="ID7cca2cd1283d444095343d0b6b7c8bc5"><enum>(B)</enum><text>a member of a recognized
professional surveying association or organization</text>
</subparagraph><subparagraph id="idA2F647B10362400082D00B62386EBE1A"><enum>(C)</enum><text>a member of a recognized
professional mapping association or organization;</text>
</subparagraph><subparagraph id="ID372da3e8d235442184a7f8fd8010d98d"><enum>(D)</enum><text>a member of a recognized
professional engineering association or organization;</text>
</subparagraph><subparagraph id="IDb7908255866b4b60b1dcf69e91c70ae4"><enum>(E)</enum><text>a member of a recognized
professional association or organization representing flood hazard
determination firms;</text>
</subparagraph><subparagraph id="ID486114474b564977a3750dc0160b2c1a"><enum>(F)</enum><text>a representative of the
United States Geological Survey;</text>
</subparagraph><subparagraph id="idA3E83FDF41ED4DEB918AEB2D4C1D89DD"><enum>(G)</enum><text>a representative of a
recognized professional association or organization representing State
geographic information;</text>
</subparagraph><subparagraph id="IDcae9a92d739a47d0acafe547cbe7885c"><enum>(H)</enum><text>a representative of State
national flood insurance coordination offices;</text>
</subparagraph><subparagraph id="idE6106E43BA9D495080833FE2D69CFA66"><enum>(I)</enum><text>a representative of the
Corps of Engineers;</text>
</subparagraph><subparagraph id="id83537E7A68404C50B04D355BAC6FDAD8"><enum>(J)</enum><text>the Secretary of the
Interior (or the designee thereof);</text>
</subparagraph><subparagraph id="id7C23CC3A3FC54B168620A3AAB4035CC9"><enum>(K)</enum><text>the Secretary of
Agriculture (or the designee thereof);</text>
</subparagraph><subparagraph id="id20B81EEDEF9F400F8B231A4796F4F9C6"><enum>(L)</enum><text>a member of a recognized
regional flood and storm water management organization;</text>
</subparagraph><subparagraph id="ID8340d8dd7335445cb63445a73ff64d8b"><enum>(M)</enum><text>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</text>
</subparagraph><subparagraph id="ID4045ff2ab23d43cf90f1ae0655cdccea"><enum>(N)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDcccaa0ba38914d5c818a5f3d037e8864"><enum>(2)</enum><header>Qualifications</header><text>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.</text>
</paragraph></subsection><subsection id="IDabeef78efec649c4b3bd238aa8c22cfe"><enum>(c)</enum><header>Duties</header><text>The
Council shall—</text>
<paragraph id="ID9cb751b4e5af4eb3a9d15a6c34819e34"><enum>(1)</enum><text>recommend to the Director
how to improve in a cost-effective manner the—</text>
<subparagraph id="id6597F564984A490B9E5281CF8BAA1811"><enum>(A)</enum><text>accuracy, general
quality, ease of use, and distribution and dissemination of flood insurance
rate maps and risk data; and</text>
</subparagraph><subparagraph id="id90043658605D47189A3A03656EF3E68D"><enum>(B)</enum><text>performance metrics and
milestones required to effectively and efficiently map flood risk areas in the
United States;</text>
</subparagraph></paragraph><paragraph id="ID652215dc14694c0c998c3153ff8357a3"><enum>(2)</enum><text>recommend to the Director
mapping standards and guidelines for—</text>
<subparagraph id="id830FBCC20DAB4AAE83276C73D7E1F630"><enum>(A)</enum><text>flood insurance rate
maps; and</text>
</subparagraph><subparagraph id="idD14D10F03FEB41F7B1C2995B8CA073B2"><enum>(B)</enum><text>data accuracy, data
quality, data currency, and data eligibility;</text>
</subparagraph></paragraph><paragraph commented="no" id="idA8DEB6F2DCC744E185DC0490113EB325"><enum>(3)</enum><text>recommend to the Director
how to maintain on an ongoing basis flood insurance rate maps and flood risk
identification;</text>
</paragraph><paragraph id="IDe1d7870b4efe46c4952092ad031a4cd7"><enum>(4)</enum><text>recommend procedures for
delegating mapping activities to State and local mapping partners;</text>
</paragraph><paragraph id="ID059101b9eef04e26a49db6df8f8929e8"><enum>(5)</enum><text>recommend to the Director
and other Federal agencies participating in the Council—</text>
<subparagraph id="id11545DEF906649E4A1D28353A948F337"><enum>(A)</enum><text>methods for improving
interagency and intergovernmental coordination on flood mapping and flood risk
determination; and</text>
</subparagraph><subparagraph id="idCD850CC0DE274530832C23B4A8BE75BD"><enum>(B)</enum><text>a funding strategy to
leverage and coordinate budgets and expenditures across Federal agencies;
and</text>
</subparagraph></paragraph><paragraph id="idD1A7C35716484F71809D75C33880F50F"><enum>(6)</enum><text>submit an annual report
to the Director that contains—</text>
<subparagraph id="ID4de398255fd04296bb9ebf1f7ea088a5"><enum>(A)</enum><text>a description of the
activities of the Council;</text>
</subparagraph><subparagraph id="ID5b0593de5f764acd9c9547a59cba67b9"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="id45D53DAB645047E0AC5B5ECB310D7D76"><enum>(C)</enum><text>a summary of
recommendations made by the Council to the Director.</text>
</subparagraph></paragraph></subsection><subsection id="id8E8C5EE6B6604AEF9128E26B77FC3CC3"><enum>(d)</enum><header>Future conditions risk
assessment and modeling report</header>
<paragraph id="idDA43BDE52439438993938D797A2F2D64"><enum>(1)</enum><header>In
general</header><text>The Council shall consult with scientists and technical
experts, other Federal agencies, States, and local communities to—</text>
<subparagraph id="idF2823CE6F3254502A9C14321667A6495"><enum>(A)</enum><text>develop recommendations
on how to—</text>
<clause id="ID907b1c230d004ca192eaca009a464725"><enum>(i)</enum><text>ensure that flood
insurance rate maps incorporate the best available climate science to assess
flood risks; and</text>
</clause><clause id="ID2f2638593c974e88b9e30a0e9eeb76d0"><enum>(ii)</enum><text>ensure that the Federal
Emergency Management Agency uses the best available methodology to consider the
impact of—</text>
<subclause id="idC76EDABD1DF8447B9E0746D711DC33D0"><enum>(I)</enum><text>the rise in the sea
level; and</text>
</subclause><subclause id="id379D6671C56D4CE6997F61A4DD7F924F"><enum>(II)</enum><text>future development on
flood risk; and</text>
</subclause></clause></subparagraph><subparagraph id="ID4d38fcc6dc634e9f871228e5c05b31de"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="idEB454D997E874D299F5A67B0FA81ECDA"><enum>(2)</enum><header>Responsibility of the
Director</header><text>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.</text>
</paragraph></subsection><subsection id="IDa2d8858d17e8499da48579b62eead88a"><enum>(e)</enum><header>Chairperson</header><text>The
members of the Council shall elect 1 member to serve as the chairperson of the
Council (in this section referred to as the <quote>Chairperson</quote>).</text>
</subsection><subsection id="ID57603a715c3745ea8836a3e9c76d661a"><enum>(f)</enum><header>Coordination</header><text>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).</text>
</subsection><subsection id="ID720a1f6977f448a2ba2573c6ea443454"><enum>(g)</enum><header>Compensation</header><text>Members
of the Council shall receive no additional compensation by reason of their
service on the Council.</text>
</subsection><subsection id="ID1235b23e516c4fb89cb63d5ac47aa507"><enum>(h)</enum><header>Meetings and
actions</header>
<paragraph id="IDb47baa027d684d5ea7fbb21f9fbcff86"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDf2369b88ad0747ba90d4c5fb2fc5faa2"><enum>(2)</enum><header>Initial
meeting</header><text>The Director, or a person designated by the Director,
shall request and coordinate the initial meeting of the Council.</text>
</paragraph></subsection><subsection id="ID51035f8dc6574616b1a3053ccabe6ba8"><enum>(i)</enum><header>Officers</header><text>The
Chairperson may appoint officers to assist in carrying out the duties of the
Council under subsection (c).</text>
</subsection><subsection id="IDc85ee0bf7a9b47ab94a511ded088a76a"><enum>(j)</enum><header>Staff</header>
<paragraph id="id04DAB3D0874C40B68C4C43B90BE15DC9"><enum>(1)</enum><header>Staff of
FEMA</header><text>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.</text>
</paragraph><paragraph id="idA3F42D568D584712AC9FB353EBE20DAD"><enum>(2)</enum><header>Staff of other Federal
agencies</header><text>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.</text>
</paragraph></subsection><subsection id="ID8ba2f228571348778a0ce8c32c2722aa"><enum>(k)</enum><header>Powers</header><text>In
carrying out this section, the Council may hold hearings, receive evidence and
assistance, provide information, and conduct research, as it considers
appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA30FB6B5AEC842BF9441910ED674B45F"><enum>(l)</enum><header>Report to
Congress</header><text>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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8B5E528E1F344A61B767200523420BA8"><enum>(1)</enum><text>recommendations made by
the Council; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB8D0C27785774C5BA192D51A4FE133AC"><enum>(2)</enum><text>actions taken by the
Federal Emergency Management Agency to address such recommendations to improve
flood insurance rate maps and flood risk data.</text>
</paragraph></subsection></section><section id="id2FB70E2C519444BD87D05E8B56CF685D"><enum>119.</enum><header>National Flood Mapping
Program</header>
<subsection id="id1B4CB1306A354B21AE5877D6194A0B2B"><enum>(a)</enum><header>Reviewing, updating,
and maintaining maps</header><text>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.</text>
</subsection><subsection id="idED446274E5054410B8631FB2409A1FC5"><enum>(b)</enum><header>Mapping</header>
<paragraph id="id4839379D582446DB8BCB3D2445A58F3A"><enum>(1)</enum><header>In
general</header><text>In carrying out the program established under subsection
(a), the Director shall—</text>
<subparagraph id="id6E036040A533432DBDA028362C9943AA"><enum>(A)</enum><text>identify, review, update,
maintain, and publish National Flood Insurance Program rate maps with respect
to—</text>
<clause id="id19394F5278CD4F00BBD99075442CFCA7"><enum>(i)</enum><text>all areas located within
the 100-year floodplain;</text>
</clause><clause id="id947BB175CB66482180AC7D4CA595B6B1"><enum>(ii)</enum><text>all areas located within
the 500-year floodplain;</text>
</clause><clause id="idA0F77AFEDC0C45D1B165F7C7435CC071"><enum>(iii)</enum><text>areas of residual risk
that have not previously been identified, including areas that are protected
levees, dams, and other man-made structures; and</text>
</clause><clause id="id6631D638001A4C37AE68E5ADCE961F4B"><enum>(iv)</enum><text>areas that could be
inundated as a result of the failure of a levee, dam, or other man-made
structure;</text>
</clause><clause id="idF34A3BF5331642B0953990FE4474B143"><enum>(v)</enum><text>the level of protection
provided by man-made structures.</text>
</clause></subparagraph><subparagraph id="idB0D9A6297F9041B49A118C09B2BB00CA"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB0A82E6C809442F99973BD1E5990EB2D"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="id3FCE5683615242608458DECDB2F91E98"><enum>(2)</enum><header>Mapping
elements</header><text>Each map updated under this section shall:</text>
<subparagraph id="id50D8EA56E73D47BE9EB90BF584D2B191"><enum>(A)</enum><header>Ground elevation
data</header><text>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.</text>
</subparagraph><subparagraph id="id7A2AA2A7781B403AA8F62F4069EF6B5E"><enum>(B)</enum><header>Data on a watershed
basis</header><text>Develop National Flood Insurance Program flood data on a
watershed basis—</text>
<clause id="id6F1D38013A8146538095D4530DE4BCCA"><enum>(i)</enum><text>to provide the most
technically effective and efficient studies and hydrologic and hydraulic
modeling; and</text>
</clause><clause id="id21750C4E1DBC4C7EA14EDEB48C6C24C7"><enum>(ii)</enum><text>to eliminate, to the
maximum extent possible, discrepancies in base flood elevations between
adjacent political subdivisions.</text>
</clause></subparagraph></paragraph><paragraph id="id1C60100ADB634FBFBB2E566F466A37A4"><enum>(3)</enum><header>Other
inclusions</header><text>In updating maps under this section, the Director
shall include—</text>
<subparagraph id="idB31DB7FFE945472A811A9B5E8ED218B2"><enum>(A)</enum><text>any relevant information
on coastal inundation from—</text>
<clause id="idCDD826E1DBFF4CA099BC68B45C5EA2B3"><enum>(i)</enum><text>an applicable inundation
map of the Corps of Engineers; and</text>
</clause><clause id="id1B50E57C33F948FA8CAE9E50E848FD1D"><enum>(ii)</enum><text>data of the National
Oceanic and Atmospheric Administration relating to storm surge modeling;</text>
</clause></subparagraph><subparagraph id="id0C460CEF1291432083A276D598BCE081"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="id735805E10ED84A4C84BCA1BC78663BFE"><enum>(C)</enum><text>any relevant information
on land subsidence, coastal erosion areas, and other floor-related
hazards;</text>
</subparagraph><subparagraph id="ID8fdad4a3f35645c7856aafd0bcfe9068"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph id="id6710EDE8869443ACA80F1CE413A5BC3B"><enum>(E)</enum><text>any other relevant
information as may be recommended by the Technical Mapping Advisory
Committee.</text>
</subparagraph></paragraph></subsection><subsection id="id9E8A247A4D9E4DE8AEEEAA26C64E7B5D"><enum>(c)</enum><header>Standards</header><text>In
updating and maintaining maps under this section, the Director shall—</text>
<paragraph id="id9BE1263BA8C84699A4D0CD7789EFE5B0"><enum>(1)</enum><text>establish standards
to—</text>
<subparagraph id="id0574BC19FFDB4CC38AE3C666FBACD86A"><enum>(A)</enum><text>ensure that maps are
adequate for—</text>
<clause id="id22A2B9B78115460C995CB681707B66E2"><enum>(i)</enum><text>flood risk
determinations; and</text>
</clause><clause id="id2FB4F3F568C945668DE2AEBFC6E6FFD8"><enum>(ii)</enum><text>use by State and local
governments in managing development to reduce the risk of flooding; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6A39E6C29D83450AA7ABB80C2B06329A"><enum>(B)</enum><text>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</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1F8FE7BDF58476FBB26DC10A1F64AA6"><enum>(2)</enum><text>publish maps in a format
that is—</text>
<subparagraph id="ID228fa52baa4a49c5ba77cfd940e3176a"><enum>(A)</enum><text>digital geospatial data
compliant;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7a374fa46f044ac6a2e83eff74464aa2"><enum>(B)</enum><text>compliant with the open
publishing and data exchange standards established by the Open Geospatial
Consortium; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCBC5B0E81B354E71AFB966A0160FCF03"><enum>(C)</enum><text>compliant with the North
American Vertical Datum of 1998 for New Hydrologic and Hydraulic
Engineering.</text>
</subparagraph></paragraph></subsection><subsection id="idBF42EFF47C104456B754AA4F89A5B199"><enum>(d)</enum><header>Communication and
outreach</header>
<paragraph id="idECE21CE40B0F4B7B86BCEE340B07E8DA"><enum>(1)</enum><header>In
general</header><text>The Director shall—</text>
<subparagraph id="id6F2AE7B959F84C84B084339784947BC4"><enum>(A)</enum><text>work to enhance
communication and outreach to States, local communities, and property owners
about the effects of—</text>
<clause id="id7E26DFB8E98F492CB4138362940E7718"><enum>(i)</enum><text>any potential changes to
National Flood Insurance Program rate maps that may result from the mapping
program required under this section; and</text>
</clause><clause id="id96E2D1BECD0147C5B2BF56D672226DF4"><enum>(ii)</enum><text>that any such changes
may have on flood insurance purchase requirements; and</text>
</clause></subparagraph><subparagraph id="id8C95869FF8FE4401A9B07188B35B79EE"><enum>(B)</enum><text>engage with local
communities to enhance communication and outreach to the residents of such
communities on the matters described under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="idD01404DC7CAF4135B8B05E1729D0C060"><enum>(2)</enum><header>Required
activities</header><text>The communication and outreach activities required
under paragraph (1) shall include—</text>
<subparagraph id="idB3643FCBB6444E42BA78D49F2ED3B93F"><enum>(A)</enum><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a</external-xref>)
to such properties;</text>
</subparagraph><subparagraph id="id963F36A8040A4710BCF89CE273B0EE2C"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="id777168A212B64889BA3DE1C9B829801C"><enum>(C)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4011">42 U.S.C. 4011 et seq.</external-xref>) for such
properties and the contents of such properties;</text>
</subparagraph><subparagraph id="idCC1FC957B8B14E1EA6BA2614B418280E"><enum>(D)</enum><text>educating property owners
about flood map revisions and the process available such owners to appeal
proposed changes in flood elevations through their community; and</text>
</subparagraph><subparagraph id="id6E5A1B9AC3814394928D05E811D325AC"><enum>(E)</enum><text>encouraging property
owners to maintain or acquire flood insurance coverage.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id13256D9154D44C7C8D73369069234B27"><enum>(e)</enum><header>Authorization of
appropriations</header><text>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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idCFD2D99B536E4428B295218F293A85AC" section-type="subsequent-section"><enum>120.</enum><header>Removal of
limitation on State contributions for updating flood maps</header><text display-inline="no-display-inline">Section 1360(f)(2) of the National Flood
Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4101">42 U.S.C. 4101(f)(2)</external-xref>) is amended by striking <quote>,
but which may not exceed 50 percent of the cost of carrying out the requested
revision or update</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id910D5D06B95E487E8151EDF06F340399"><enum>121.</enum><header>Coordination</header>
<subsection commented="no" display-inline="no-display-inline" id="idD5B42AD289664337A29A12F94B26F0E9"><enum>(a)</enum><header>Interagency budget
crosscut report</header>
<paragraph commented="no" display-inline="no-display-inline" id="idAB8E45A9DC394CA483178667870D73E9"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id86A7221942DD40659E7C2A38E45F16B3"><enum>(2)</enum><header>Report</header><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE557F3DDA6274BFB9DF37BE764AE30FE"><enum>(b)</enum><header>Duties of the
Director</header><text>In carrying out sections 118 and 119, the Director
shall—</text>
<paragraph commented="no" id="idE98A5416193044F3813787DE7B5CB2E9"><enum>(1)</enum><text>participate, pursuant to
section 216 of <external-xref legal-doc="public-law" parsable-cite="pl/107/347">Public Law 107–347</external-xref> (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;</text>
</paragraph><paragraph commented="no" id="ID3f08d690720c4b8b8e33472d31315759"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph commented="no" id="id851E911C986F4A7985487E1AAAB07885"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph commented="no" id="idA8485F0386194BC499EF592162B67F7D"><enum>(4)</enum><text>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</text>
</paragraph><paragraph commented="no" id="IDe2cd35d09b1a4ea8bd4049b546730867"><enum>(5)</enum><text>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.</text>
</paragraph></subsection></section><section id="id25DF7532962841E88A94E8C15863C6E1"><enum>122.</enum><header>Interagency
coordination study</header>
<subsection id="id103943C1F0D947CF9E8CF5A1BD02F149"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="id134A052B44634743BB86570040E0F6E7"><enum>(1)</enum><text>should improve
interagency and intergovernmental coordination on flood mapping, including a
funding strategy to leverage and coordinate budgets and expenditures;
and</text>
</paragraph><paragraph id="idAA753095676B4407B8A1A1EFB2C92534"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="idF186B54F385F42AD85384CDDD68462A7"><enum>(b)</enum><header>Timing</header><text>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—</text>
<paragraph id="id9C857B890D3E40BE9E80B0438D567669"><enum>(1)</enum><text>Committee on Banking,
Housing, and Urban Affairs of the Senate;</text>
</paragraph><paragraph id="id2B6D8CEC783147E7B9B2C6C3B00E1F28"><enum>(2)</enum><text>Committee on Financial
Services of the House of Representatives;</text>
</paragraph><paragraph id="id599F5D179DAB457D9BBAEA400110FF80"><enum>(3)</enum><text>Committee on
Appropriations of the Senate; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF7EA1FDCD9D24730B05B84EF8401EFA2"><enum>(4)</enum><text>Committee on
Appropriations of the House of Representatives.</text>
</paragraph></subsection></section><section id="id1CD07279802840DAB0868B77810449D2"><enum>123.</enum><header>Nonmandatory
participation</header>
<subsection id="id28C9F61C319249A48EF2918F3B6F37B9"><enum>(a)</enum><header>Nonmandatory
participation in national flood insurance program for 500-year
floodplain</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a</external-xref>, 4106).</text>
</subsection><subsection id="idE70283E8D7A549FE8EC782FFBB64F314"><enum>(b)</enum><header>Notice</header>
<paragraph id="id1E189FFA3DAA4AB79E447014AA9DB57C"><enum>(1)</enum><header>By
Director</header><text>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.</text>
</paragraph><paragraph id="idFD32F09123C84B0B8C84EC3DC702D32F"><enum>(2)</enum><header>Timing of
notice</header><text>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.</text>
</paragraph><paragraph id="id93CBE0A8BBCC4CD69481C3D1840B9F5C"><enum>(3)</enum><header>Lender required
notice</header>
<subparagraph id="id0B53952FEA574B5ABCBCE1AAF8BFFC6F"><enum>(A)</enum><header>Regulated lending
institutions</header><text>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
(<external-xref legal-doc="usc" parsable-cite="usc/42/4104a">42 U.S.C. 4104a(a)(1)</external-xref>).</text>
</subparagraph><subparagraph id="idB0A5161C2E1D4D39A7A63CF74503CA69"><enum>(B)</enum><header>Federal or State agency
lenders</header><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8276BD7CFAC946E8B6A48DA4C67C8825"><enum>(C)</enum><header>Penalty for
noncompliance</header><text>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)).</text>
</subparagraph></paragraph></subsection></section><section id="idDBFCA557379446A2BC17A5E5F146DBBA"><enum>124.</enum><header>Notice of flood
insurance availability under RESPA</header><text display-inline="no-display-inline">Section 5(b) of the Real Estate Settlement
Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2604">12 U.S.C. 2604(b)</external-xref>) is amended—</text>
<paragraph id="id6B4A54486D28480F9F1464C75D1A5DD7"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking <quote>;
and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="id5556DD7D08E64620B2281DB6ED625D32"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking the period
and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="id19458257BC0948AFA5CF6E56F77F8C25"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id74EC8DDEA4F04789ADD3BA606BA8ED68" reported-display-style="italic" style="OLC">
<paragraph id="id88DC7FD11B95498F9CC410A6DCCD83BF"><enum>(6)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idD5BBB45DADDB490484877E59280AA5D3"><enum>125.</enum><header>Testing of new
floodproofing technologies</header>
<subsection id="id550A92BAC3C44FD889060A4D32C82064"><enum>(a)</enum><header>Permissible
testing</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4104c">42 U.S.C. 4104c</external-xref>) 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.</text>
</subsection><subsection id="id56A73FF26338438EBC823DB58B12379D"><enum>(b)</enum><header>Conditions on
testing</header><text>Testing permitted under subsection (a) shall—</text>
<paragraph id="idAA98A120A3DC4C97A41589E9886E218A"><enum>(1)</enum><text display-inline="yes-display-inline">be performed on an uninhabited residential
structure;</text>
</paragraph><paragraph id="idF6796973B8314BB4A488B9E01BCD7286"><enum>(2)</enum><text>require dismantling of
the structure at the conclusion of such testing; and</text>
</paragraph><paragraph id="id0F8C78BF49F1478D846463564CACDCBD"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="id9FC09C6CE16C42288DB8BD983E92C4A0"><enum>(c)</enum><header>Rule of
construction</header><text>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).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id8634031946D04E85878B7CF1CB03B622"><enum>126.</enum><header>Participation in State
disaster claims mediation programs</header><text display-inline="no-display-inline">Chapter I of the National Flood Insurance
Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4011">42 U.S.C. 4011 et seq.</external-xref>) is amended by inserting after section 1313
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id12B50D3DB48D45978BB988E745227301" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id4FF285058FDE4EF98FFE79C2273B054B"><enum>1314.</enum><header>Participation in
State disaster claims mediation programs</header>
<subsection commented="no" display-inline="no-display-inline" id="idAD7CF54A68434B4780958102BA7B9B5A"><enum>(a)</enum><header>Requirement to
participate</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/5122">42 U.S.C. 5122</external-xref>) 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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2F60CDD403844963A1324629C4052135"><enum>(b)</enum><header>Extent of
participation</header><text>In satisfying the requirements of subsection (a),
the Director shall require that each representative of the Director—</text>
<paragraph id="ID53b7f723c2d54462ae55afceb3a09173"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDbe640c0a6a9344e39d0ad3d930bef6b1"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID887565e824e74ef99069931a2aeccf26"><enum>(3)</enum><text>participate in good faith
negotiations toward the settlement of such claims with policyholders of
coverage made available under the flood insurance program; and</text>
</paragraph><paragraph id="ID548a168512074f47b9b67a0772c2dda1"><enum>(4)</enum><text>finalize the settlement
of such claims on behalf of the flood insurance program with such
policyholders.</text>
</paragraph></subsection><subsection id="id470D103032C1421BA4E97D7384ADA045"><enum>(c)</enum><header>Coordination</header><text>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.</text>
</subsection><subsection id="idB1421A44882F4215977BC5EBB46A5EF3"><enum>(d)</enum><header>Qualifications of
Mediators</header><text>Each State mediator participating in State-sponsored
mediation under this section shall be—</text>
<paragraph id="id2093727FFD854C1983BB884AE481CBDB"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idB5AAF2DBF2404E03A9860EA3C19839DA"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph changed="added" id="idCED1A88778384FABB4DBC0BC2CE1038E" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>an
active member of such bar for at least 1 year prior to the year in which such
mediator's participation is sought; or</text>
</subparagraph></paragraph><paragraph id="idE372372842374CBCAE409FAA79352CF6"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="idD7FD98B374514175B728554D871EAD62"><enum>(e)</enum><header>Mediation proceedings
and documents privileged</header><text>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.</text>
</subsection><subsection id="id251FE121C5EB447F85D913618B671545"><enum>(f)</enum><header>Liability, rights, or
obligations not affected</header><text>Participation in State-sponsored
mediation, as described in this section does not—</text>
<paragraph id="id32D89DCC84BE4B08A177F2E2C79037EE"><enum>(1)</enum><text>affect or expand the
liability of any party in contract or in tort; or</text>
</paragraph><paragraph id="idBB91F52643044E01B1F124D55C2F9071"><enum>(2)</enum><text>affect the rights or
obligations of the parties, as established—</text>
<subparagraph id="id61416BAA07D548F189B7326913416E08"><enum>(A)</enum><text>in any regulation issued
by the Director, including any regulation relating to a standard flood
insurance policy;</text>
</subparagraph><subparagraph id="id36357A648D204F7FB6100784682ED039"><enum>(B)</enum><text>under this Act;
and</text>
</subparagraph><subparagraph id="id7A4167C9808B4EF0AC0224843BB3BA3A"><enum>(C)</enum><text>under any other provision
of Federal law.</text>
</subparagraph></paragraph></subsection><subsection id="id4AEC9C73344A408BA74D15F7DEFD52A3"><enum>(g)</enum><header>Exclusive federal
jurisdiction</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD426AC8BC6A54765807622F983ACEAE8"><enum>(h)</enum><header>Cost
limitation</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCEB6C6865D4141B3BF7EB5E6706E59AD"><enum>(i)</enum><header>Exception</header><text>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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idEEA362616737453AB8E723405AEB3244"><enum>(1)</enum><text>this section shall not
apply; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id04BBE0E1BA314F93872044EAC898DAF8"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3540D3CDE6DD4B099C270A04EA389EE7"><enum>(j)</enum><header>Representatives of the
Director</header><text>For purposes of this section, the term
<term>representatives of the Director</term> 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).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id83E5880B4FA04319ADBC861FDD6E1A1B"><enum>127.</enum><header>Reiteration of FEMA
responsibilities under the 2004 Reform Act</header>
<subsection id="id673C0B8EB3CE4736A92BC7CC7FCB6CC5"><enum>(a)</enum><header>Minimum training and
education requirements</header><text>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).</text>
</subsection><subsection id="id90F753D708774922A15EB9CB3BB4753C"><enum>(b)</enum><header>Report on the overall
implementation of the Reform Act of 2004</header><text>Not later than 3 months
after the date of the enactment of this title, the Director shall submit a
report to Congress—</text>
<paragraph id="IDf32dca63fd11413592f61b99f2e0b3d6"><enum>(1)</enum><text>describing the
implementation of each provision of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 (<external-xref legal-doc="public-law" parsable-cite="pl/108/264">Public Law 108–264</external-xref>; 118 Stat. 712);</text>
</paragraph><paragraph id="IDacd088cfaf4f46c68d626f6d9b998565"><enum>(2)</enum><text>identifying each
regulation, order, notice, and other material issued by the Director in
implementing each provision of that Act;</text>
</paragraph><paragraph id="ID33831a0d085c45b198589e670327a4e9"><enum>(3)</enum><text>explaining any statutory
or implied deadlines that have not been met; and</text>
</paragraph><paragraph id="ID6c7d0c02297148ff804c33570ab415c3"><enum>(4)</enum><text>providing an estimate of
when the requirements of such missed deadlines will be fulfilled.</text>
</paragraph></subsection></section><section id="id928C141A31814A5BAC93E23DFD2D1E1C"><enum>128.</enum><header>Additional authority
of FEMA to collect information on claims payments</header>
<subsection id="id31FE157109B44F3099E458B0D309BE00"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="id84FBB87E139C480B8856D4C6572398D3"><enum>(b)</enum><header>Type of information To
be collected</header><text display-inline="yes-display-inline">The information
and data to be collected under subsection (a) may include—</text>
<paragraph id="id48F0CBA9EC6E470D913070CEE9159650"><enum>(1)</enum><text>any adjuster estimates
made as a result of flood damage, and if the insurance company also insures the
property for wind damage—</text>
<subparagraph id="id85189704CB4A4F2FAA0BFC8AC74451E9"><enum>(A)</enum><text>any adjuster estimates
for both wind and flood damage;</text>
</subparagraph><subparagraph id="id8F13F9E80B694805A7A5CE7426980344"><enum>(B)</enum><text>the amount paid to the
property owner for wind and flood claims;</text>
</subparagraph><subparagraph id="idF9514D51916B4A4AAC674973C2A73ED4"><enum>(C)</enum><text>the total amount paid to
the policyholder for damages as a result of the event that caused the flooding
and other losses;</text>
</subparagraph></paragraph><paragraph id="idA529428AB57A474C902EB611229727B8"><enum>(2)</enum><text display-inline="yes-display-inline">any amounts paid to the policyholder by the
insurance company for damages to the insured property other than flood damages;
and</text>
</paragraph><paragraph id="idEF8A8C2D3B9C4228B9E9879AB2232C6C"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section id="id478E846606D04C16BEC61CA61F803F39"><enum>129.</enum><header>Expense reimbursements
of insurance companies</header>
<subsection id="idA8B6058718BD43F5B162E63F6C61A5BC"><enum>(a)</enum><header>Submission of biennial
reports</header>
<paragraph id="idAB803E93D21E42449DE54E0E1A1E220B"><enum>(1)</enum><header>To the
Director</header><text>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.</text>
</paragraph><paragraph id="id9F416F71DE74439C9290662F70CCFC82"><enum>(2)</enum><header>To
GAO</header><text>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.</text>
</paragraph><paragraph id="id2E891321175B426593B6A3C89A2DCF37"><enum>(3)</enum><header>Notice to Congress of
failure to comply</header><text>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).</text>
</paragraph><paragraph id="id26FC38238A144A8099CFC8BA46BBBD45"><enum>(4)</enum><header>Failure to
comply</header><text>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 <external-xref legal-doc="regulation" parsable-cite="cfr/44/62.23">section 62.23(j)(1)</external-xref> 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.</text>
</paragraph></subsection><subsection id="id4EC24E79CE2D4CD88287682BC80D0015"><enum>(b)</enum><header>FEMA rulemaking on
expenses of WYO program</header><text>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.</text>
</subsection><subsection id="idAF3B634B3B8943768EF0A3D8ECE7F3C7"><enum>(c)</enum><header>Submission of expense
reports</header><text>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).</text>
</subsection><subsection id="idB4E49A3D2AA94A9EB0C721CE67BAE609"><enum>(d)</enum><header>FEMA rulemaking on
reimbursement of expenses under the WYO program</header><text>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.</text>
</subsection><subsection id="idA94617903D1A4B54BA832D00364FCB86"><enum>(e)</enum><header>Report of the
Director</header><text>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—</text>
<paragraph id="id7726C3F5B5D74E9EB54B5365F5193AB1"><enum>(1)</enum><text>the specific rationale
and purposes of such rule;</text>
</paragraph><paragraph id="idCFD4C067EAC44C308E7A3FFD0A3D7BF9"><enum>(2)</enum><text>the reasons for the
adoption of the policies contained in such rule; and</text>
</paragraph><paragraph id="id38FBB2F84A8749D48C6050D17D5D4D47"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="idF520B70E7F6A4702A79DD837E88C1716"><enum>(f)</enum><header>GAO study and report on
expenses of WYO program</header>
<paragraph id="id28DE779025DB4212B800B3609DAFFAE0"><enum>(1)</enum><header>Study</header><text>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—</text>
<subparagraph id="id5799D78EEA304A28906C8E7C7F9B14B5"><enum>(A)</enum><text>conduct a study on the
efficacy, adequacy, and sufficiency of the final rules established pursuant to
subsections (b) and (d); and</text>
</subparagraph><subparagraph id="id3D4F2EDFD26E45C1BCD89757D753302E"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="idD36E1E1CE1A4468BACF0F30E8D7ECCDE"><enum>(2)</enum><header>GAO
authority</header><text>In conducting the study and report required under
paragraph (1), the Comptroller General—</text>
<subparagraph id="idE4E4776583774DF482C2C76E2261636B"><enum>(A)</enum><text>may use any previous
findings, studies, or reports that the Comptroller General previously completed
on the Write Your Own program;</text>
</subparagraph><subparagraph id="id46DD8CBF044B4B3E9B5F72460329360B"><enum>(B)</enum><text>shall determine
if—</text>
<clause id="idA077691B20054F8883FC386C2ADF45D2"><enum>(i)</enum><text>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</text>
</clause><clause id="id17F57403079844DEBA75DE5AD2AC9E52"><enum>(ii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="id52AC7D5E81A444E2A64D775C936B8C33"><enum>(C)</enum><text>shall analyze the effect
of such rules on the level of participation of property and casualty insurers
in the Write Your Own program.</text>
</subparagraph></paragraph></subsection></section><section id="HD0849EB1C73247EE915C6DD71278601E" section-type="subsequent-section"><enum>130.</enum><header>Extension of pilot
program for mitigation of severe repetitive loss properties</header>
<subsection id="idE462114F170F472298FD42AF02D2DAE9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1361A of the
National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4102a">42 U.S.C. 4102a</external-xref>) is
amended—</text>
<paragraph id="id44AD7C3FA63E4388A6F10C1023F9563D"><enum>(1)</enum><text>in subsection
(k)(1)—</text>
<subparagraph id="id34A97519B8A04144B6269AD047F7DFF8"><enum>(A)</enum><text>in the first sentence, by
striking <quote>in each of fiscal years 2005, 2006, 2007, 2008, and
2009</quote> and inserting <quote>in each fiscal year through fiscal year
2013</quote>; and</text>
</subparagraph><subparagraph id="id03D9C8640E5A43A0A1321768D6DEEC3B"><enum>(B)</enum><text>by adding at the end the
following new sentence: <quote>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.</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB7C302517F0E4144A6CCC3D61DA61E4A"><enum>(2)</enum><text>by striking subsection
(l).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3AFC401ABF494A34843AEBEAF5866142"><enum>(b)</enum><header>Report to Congress on
implementation status</header><text>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).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2FBD21D12079459BB3E7E25E801FCC0F"><enum>(c)</enum><header>Rulemaking</header><text>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).</text>
</subsection></section><section id="H8CBA066696A44B12B180F9130D1B390"><enum>131.</enum><header>Flood insurance
advocate</header><text display-inline="no-display-inline">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:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id838F14F6013C41B4A1E6C328EA4B4B20" reported-display-style="italic" style="OLC">
<section id="idB644E16BCD724118AAB8850F82EE380C"><enum>1330A.</enum><header>Office of the flood
insurance advocate</header>
<subsection id="id67C8A27C23E340E4897DCEE28CE71AC5"><enum>(a)</enum><header>Establishment of
position</header>
<paragraph id="H0FC7E00351EF4F32BA3C377100E9CDF1"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="IDd2db1884c5dc4053a91bff22aa2ad6c8"><enum>(A)</enum><text>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
<external-xref legal-doc="usc" parsable-cite="usc/5/5382">section 5382</external-xref> of title 5, United States Code, or, if the Director so determines,
at a rate fixed under section 9503 of such title;</text>
</subparagraph><subparagraph id="ID288679cc94f149bd9bac3c4225cd77e2"><enum>(B)</enum><text>be appointed by the
Director without regard to political affiliation;</text>
</subparagraph><subparagraph id="ID50f2d2717661466297c964addef673ec"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="ID48d61e8d5b4848efbba1d00480d50b0f"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H2B9F793C1A434E44AF00EA36DD003017"><enum>(2)</enum><header>Qualifications</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HFE336755F16C42DA8EFC2F5DD7D7BD2"><enum>(3)</enum><header>Restriction on
employment</header><text>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.</text>
</paragraph><paragraph id="HE7662243B7CA4E538200F0253C68A3BC"><enum>(4)</enum><header>Staff</header><text>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.</text>
</paragraph><paragraph id="IDd64b1d5670d645a684c6698c9bda0e09"><enum>(5)</enum><header>Independence</header><text>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.</text>
</paragraph><paragraph id="ID0edb3fe569414e158a9bb605498a04cf"><enum>(6)</enum><header>Removal</header><text>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.</text>
</paragraph></subsection><subsection id="id6157CA6AC5FD43C4A0CAD66A01033E14"><enum>(b)</enum><header>Functions of
Office</header><text>It shall be the function of the Office of the Flood
Insurance Advocate to—</text>
<paragraph id="ID535bced7bb884c30ab90c7aecfa17e7a"><enum>(1)</enum><text>assist injure under the
national flood insurance program in resolving problems with the Federal
Emergency Management Agency relating to such program;</text>
</paragraph><paragraph id="ID8d55f2403a3747a68f8b69f81f9e00d1"><enum>(2)</enum><text>identify areas in which
such injure have problems in dealings with the Federal Emergency Management
Agency relating to such program;</text>
</paragraph><paragraph id="ID7c6bb7a74817409fa80f4f975564d6e3"><enum>(3)</enum><text>propose changes in the
administrative practices of the Federal Emergency Management Agency to mitigate
problems identified under paragraph (2);</text>
</paragraph><paragraph id="id5B488C5ED9A74DC59CD46AC88CB233C1"><enum>(4)</enum><text>identify potential
legislative, administrative, or regulatory changes which may be appropriate to
mitigate such problems;</text>
</paragraph><paragraph id="ID93511b714fa84d2bb37b160e6c4f31c9"><enum>(5)</enum><text>conduct, supervise, and
coordinate—</text>
<subparagraph id="ID6b200a16574d4e64b99c215ea725dab8"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDee979c0bb4e84ab48cc1517f56b8ab07"><enum>(B)</enum><text>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;</text>
</subparagraph></paragraph><paragraph id="ID53498e2c43114ea5bd2ab3f2666c478c"><enum>(6)</enum><text>conduct, supervise, and
coordinate investigations into the operations of the national flood insurance
program for the purpose of—</text>
<subparagraph id="ID609dc91521f548de9c40072f3a21b46f"><enum>(A)</enum><text>promoting economy and
efficiency in the administration of such program;</text>
</subparagraph><subparagraph id="ID5516c1cb5d28469293e8ac83461923bd"><enum>(B)</enum><text>preventing and detecting
fraud and abuse in the program; and</text>
</subparagraph><subparagraph id="ID6af8e24c3cc0430b85158b91309cf777"><enum>(C)</enum><text>identifying, and
referring to the Attorney General for prosecution, any participant in such
fraud or abuse; and</text>
</subparagraph></paragraph><paragraph id="ID5b1fe7f0ee464730b622442db702e588"><enum>(7)</enum><text>identify and investigate
conflicts of interest that undermine the economy and efficiency of the national
flood insurance program.</text>
</paragraph></subsection><subsection id="IDcb90bbb14b7149428494d191c6159810"><enum>(c)</enum><header>Authority of the
national flood insurance advocate</header><text>The National Flood Insurance
Advocate may—</text>
<paragraph id="ID75e24ddb2fcf45f9b9ec767b521592d3"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDcd33dba184c446b8ad5d9e5e377515e3"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID951c6482a31b4670be03e9caad613b7c"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="ID20a972e4c3984b0dbf7f43ad5e40911d"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="ID2963c924b981473fb58ab3d3ed266c23"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="ID4b3c349a2ba54aac99d97a7e55546851"><enum>(6)</enum><text>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;</text>
</paragraph><paragraph id="IDe102f6f46252495e821b0b4651d1f640"><enum>(7)</enum><text>obtain services as
authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> 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</text>
</paragraph><paragraph id="ID83c16652e4fd4cadb36bce1f92edd83a"><enum>(8)</enum><text>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.</text>
</paragraph></subsection><subsection id="idE84C3401FFCE4F8FA786D8A32A433381"><enum>(d)</enum><header>Additional duties of
the NFIA</header><text>The National Flood Insurance Advocate shall—</text>
<paragraph id="IDff24a4d903234882b05ac284fb2ce60f"><enum>(1)</enum><text>monitor the coverage and
geographic allocation of regional offices of flood insurance advocates;</text>
</paragraph><paragraph id="ID81aa5a6f5e6b49e6af740239ddfaa12c"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID2cb01c5c266242e5840df9db2a36f04e"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="idDBF5B46506B0406AB13899445EC4B7C9"><enum>(4)</enum><text>establish temporary State
or local offices where necessary to meet the needs of qualified insureds
following a flood event.</text>
</paragraph></subsection><subsection id="idC577521CB1C34878A803CB206D9C04F3"><enum>(e)</enum><header>Other
responsibilities</header>
<paragraph id="IDd247ef36f0c6436ba2319167445d4909"><enum>(1)</enum><header>Additional requirements
relating to certain audits</header><text>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—</text>
<subparagraph id="ID0cc9dd20640b430ca63480229fab7d38"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID9a5ee9acb0914374a8f85f3f03c30fc9"><enum>(B)</enum><text>collect or compile the
data identified in subparagraph (A), utilizing existing data sources to the
maximum extent practicable; and</text>
</subparagraph><subparagraph id="ID92c6243017f242028c0052bdc8a4d01a"><enum>(C)</enum><text>establish policies,
procedures, and guidelines for application of such data in all audits and
investigations authorized under this section.</text>
</subparagraph></paragraph><paragraph id="idC558454C94DD4E7A924B14EBD9A9A99E"><enum>(2)</enum><header>Annual reports</header>
<subparagraph id="idB3D3E199F52E446E8F4A41F24B62BDFD"><enum>(A)</enum><header>Activities</header><text>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—</text>
<clause id="ID54e109430a624c22946d9d59156005ec"><enum>(i)</enum><text>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;</text>
</clause><clause id="ID50c825263b354168abb8057013c27719"><enum>(ii)</enum><text>describe the nature of
recommendations made to the Director under subsection (i);</text>
</clause><clause id="IDfa854b1b8de341568c97ef3c12d39a6d"><enum>(iii)</enum><text>contain a summary of
the most serious problems encountered by such insureds, including a description
of the nature of such problems;</text>
</clause><clause id="ID0d8d228985aa4d5daf9a6806f1aa768f"><enum>(iv)</enum><text>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;</text>
</clause><clause id="ID0b8fe9ff17714d4fa270bf1bc01a8bed"><enum>(v)</enum><text>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;</text>
</clause><clause id="IDc3df81cbb334455bbdcf463877a50d09"><enum>(vi)</enum><text>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;</text>
</clause><clause id="IDc415ee8067694ca2833d537ff8d006c4"><enum>(vii)</enum><text>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);</text>
</clause><clause id="ID17852bbf5f7b4f8087a61bb42eadfc62"><enum>(viii)</enum><text>contain
recommendations for such administrative and legislative action as may be
appropriate to resolve problems encountered by such insureds;</text>
</clause><clause id="ID09b38c61e6004dbf873268c6e3aa2a7b"><enum>(ix)</enum><text>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;</text>
</clause><clause id="ID64b630e83bcd41448f1155ae57d58a22"><enum>(x)</enum><text>identify the most
litigated issues for each category of such insureds, including recommendations
for mitigating such disputes;</text>
</clause><clause id="ID44a00b7b9d284005b58e11ed71a5e045"><enum>(xi)</enum><text>identify ways to promote
the economy, efficiency, and effectiveness in the administration of the
national flood insurance program;</text>
</clause><clause id="IDb734308121ec47a48ebb2dcc96c573be"><enum>(xii)</enum><text>identify fraud and
abuse in the national flood insurance program; and</text>
</clause><clause id="ID23f77e98d92c482a9a23bada22d846af"><enum>(xiii)</enum><text>include such other
information as the National Flood Insurance Advocate may deem advisable.</text>
</clause></subparagraph><subparagraph id="idF90DE615F9334042B42E27EC1A5BC24E"><enum>(B)</enum><header>Direct submission of
report</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID16b88f0653704b28b18a51100fbe053a"><enum>(3)</enum><header>Information and
assistance from other agencies</header>
<subparagraph id="ID43c0397c29b14fa28839ae630a2e6e14"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDbb924cc6f0304e868597ff45608239f2"><enum>(B)</enum><header>Refusal to
comply</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="IDae57f950202947dd8c58017a2c3a0160"><enum>(f)</enum><header>Compliance with GAO
standards</header><text>In carrying out the responsibilities established under
this section, the National Flood Insurance Advocate shall—</text>
<paragraph id="IDde329fca12484ba593b14f378735b9eb"><enum>(1)</enum><text>comply with standards
established by the Comptroller General of the United States for audits of
Federal establishments, organizations, programs, activities, and
functions;</text>
</paragraph><paragraph id="ID0aac42edf3e646239763ef69bfedb4c1"><enum>(2)</enum><text>establish guidelines for
determining when it shall be appropriate to use non-Federal auditors;</text>
</paragraph><paragraph id="IDf9beade2736d4ea79d8566dbcdfa19b0"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="IDe3dc4f812a5843c3ba9979a1ed914474"><enum>(4)</enum><text>take the necessary steps
to minimize the publication of proprietary and trade secrets
information.</text>
</paragraph></subsection><subsection id="id0237E35E590B4B72A9101D933AD840CB"><enum>(g)</enum><header>Personnel
actions</header>
<paragraph id="idD8182637D3B84A379D6C1625EEF66E4A"><enum>(1)</enum><header>In
general</header><text>The National Flood Insurance Advocate shall have the
responsibility and authority to—</text>
<subparagraph id="IDc3179818b85a432ebde12a1737944cf7"><enum>(A)</enum><text>appoint regional flood
insurance advocates in a manner that will provide appropriate coverage based
upon regional flood insurance program participation; and</text>
</subparagraph><subparagraph id="IDbbfaad65b4d64afca3c4cafeb1e4ecfc"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="id955BFE31AFA5451A9814214C7DA44BD4"><enum>(2)</enum><header>Consultation</header><text>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.</text>
</paragraph></subsection><subsection id="id10A7948CECC043D2B2842E2D2CF8AF88"><enum>(h)</enum><header>Operation of regional
offices</header>
<paragraph id="id08042CF30AFC473F9151E31C134738FC"><enum>(1)</enum><header>In
general</header><text>Each regional flood insurance advocate appointed pursuant
to subsection (d)—</text>
<subparagraph id="IDaa2ce2b4ac65459096f60cf6764b87aa"><enum>(A)</enum><text>shall report to the
National Flood Insurance Advocate or delegate thereof;</text>
</subparagraph><subparagraph id="IDa751daa4a95a4adfad8df098088d8632"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="ID181f8cc6ff6b415fb575e593a4211149"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="ID782a6906407b4ecaac92916867cfd644"><enum>(D)</enum><text>may, at the flood
insurance advocate’s discretion, not disclose to the Director contact with, or
information provided by, such insured.</text>
</subparagraph></paragraph><paragraph id="id66AD7F9E125E490991623396924AD62E"><enum>(2)</enum><header>Maintenance of
independent communications</header><text>Each regional office of the flood
insurance advocate shall maintain a separate phone, facsimile, and other
electronic communication access.</text>
</paragraph></subsection><subsection id="id546DB9D5F3A94DDC9B509ED23C2883BE"><enum>(i)</enum><header>Flood Insurance
Assistance recommendations</header>
<paragraph id="id302C23F3D6C9400BA9CA3B9CF94611FC"><enum>(1)</enum><header>Authority to
issue</header><text>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.</text>
</paragraph><paragraph id="idD7231C20953A4E36925B1F3E8D9E2430"><enum>(2)</enum><header>Terms of a flood
insurance assistance recommendation</header><text>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.</text>
</paragraph><paragraph id="id47466E068D804DECBD81115C0C343B9B"><enum>(3)</enum><header>Director
response</header><text>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—</text>
<subparagraph id="id1962BB487A944246888BC74D37E18687"><enum>(A)</enum><text>whether such
recommendation was followed;</text>
</subparagraph><subparagraph id="id4B5DCF0767A346698CC1163B50192B88"><enum>(B)</enum><text>why such recommendation
was or was not followed; and</text>
</subparagraph><subparagraph id="id53139927EA9E46E693A03C7085775C85"><enum>(C)</enum><text>what, if any, additional
actions were taken by the Director to prevent the hardship indicated in such
recommendation.</text>
</subparagraph></paragraph><paragraph id="idFE61372A84E14CF3B6510B7B44EEB57E"><enum>(4)</enum><header>Responsibilities of
Director</header><text>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.</text>
</paragraph></subsection><subsection id="IDb346e6c5015541859e151418610dd74e"><enum>(j)</enum><header>Reporting of potential
criminal violations</header><text>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.</text>
</subsection><subsection id="IDe9fc7811be924e21a621fb3cd6e94707"><enum>(k)</enum><header>Coordination</header>
<paragraph id="ID8e0777eb7d114fcf914fab20f8b5dfeb"><enum>(1)</enum><header>With other Federal
agencies</header><text>In carrying out the duties and responsibilities
established under this section, the National Flood Insurance Advocate—</text>
<subparagraph id="ID0338f7edc1dd40d3939280365131e055"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDb3ec444f89154897bee0824c4f28e8a7"><enum>(B)</enum><text>may participate, upon
request of the Inspector General of the Department of Homeland Security, in any
audit or investigation conducted by the Inspector General.</text>
</subparagraph></paragraph><paragraph id="IDf9db7b97b5a34394ad23ec02213cb309"><enum>(2)</enum><header>With State
regulators</header><text>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.</text>
</paragraph><paragraph id="idAC12B7A50C8646C0B244DA04A58CB6E9"><enum>(3)</enum><header>Avoidance of
redundancies in the resolution of problems</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/44/62">section 62.20</external-xref> of title 44, Code of Federal
Regulations.</text>
</paragraph></subsection><subsection id="ID899efd67c5b0426f8f7edd39341adeed"><enum>(l)</enum><header>Authority of the
director To levy penalties</header><text>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.</text>
</subsection><subsection id="idDF193272FEF34A6BBB938230289A1BC1"><enum>(m)</enum><header>Definitions</header><text>For
purposes of this subsection:</text>
<paragraph id="ID54775e787c5f4dfa9406d2a1e05b6ced"><enum>(1)</enum><header>Associated
entity</header><text>The term <term>associated entity</term> 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.</text>
</paragraph><paragraph id="ID7ab5adf51eec433984f29bf9e3e0d2f1"><enum>(2)</enum><header>Insurance
company</header><text>The term <term>insurance company</term> 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.</text>
</paragraph><paragraph id="idEDEE272039AA4F399AB495ED669465E5"><enum>(3)</enum><header>National Flood
Insurance Advocate</header><text>The term <term>National Flood Insurance
Advocate</term> includes any designee of the National Flood Insurance
Advocate.</text>
</paragraph><paragraph id="id12215DEDB7924ECB9A6764013DD5B60A"><enum>(4)</enum><header>Qualified
insured</header><text>The term <term>qualified insured</term> means an insured
under coverage provided under the national flood insurance program under this
title.</text>
</paragraph></subsection><subsection id="id4580E50C98084815A31621DC3E62CCA6"><enum>(n)</enum><header>Funding</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idD678DC99E30C47C081676FDB22CBDC4C"><enum>132.</enum><header>Studies and
Reports</header>
<subsection id="id135BD208CB4A48A4B6A22A6E0AF3F6F4"><enum>(a)</enum><header>Report on expanding the
National Flood Insurance Program</header><text>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—</text>
<paragraph id="IDc7d37bbf57b647c48bedbe8e28c6570b"><enum>(1)</enum><text>the number of flood
insurance policy holders currently insuring—</text>
<subparagraph id="id4B5408E4D8F84007A43854E447AF0A3E"><enum>(A)</enum><text>a residential structure
up to the maximum available coverage amount, as established in section 61.6 of
title 44, Code of Federal Regulations, of—</text>
<clause id="idB6B548FB41264088BC4120B6B7452A23"><enum>(i)</enum><text>$250,000 for the
structure; and</text>
</clause><clause id="idF86D95962C93465BB81A7717E8A15976"><enum>(ii)</enum><text>$100,000 for the
contents of such structure; or</text>
</clause></subparagraph><subparagraph id="id811AE48988B64709A38DE1EF9A81A91B"><enum>(B)</enum><text>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;</text>
</subparagraph></paragraph><paragraph id="IDc795876cbb424703942437a27d6607ec"><enum>(2)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>);</text>
</paragraph><paragraph id="IDf187bbdb705d4666abb7148a4b5eafbc"><enum>(3)</enum><text>the availability in the
private marketplace of flood insurance coverage in amounts that exceed the
current limits of coverage amounts established in <external-xref legal-doc="usc" parsable-cite="usc/44/61">section 61.6</external-xref> of title 44,
Code of Federal Regulations; and</text>
</paragraph><paragraph id="IDd52bcecff8c24bfba30e09ef39237e3f"><enum>(4)</enum><text>what effect, if
any—</text>
<subparagraph id="idAABE2076DBC645F588709C55B372FA9B"><enum>(A)</enum><text>raising the current
limits of coverage amounts established in <external-xref legal-doc="usc" parsable-cite="usc/44/61">section 61.6</external-xref> of title 44, Code of
Federal Regulations, would have on the ability of private insurers to continue
providing flood insurance coverage; and</text>
</subparagraph><subparagraph id="id3F80ED94D50547A2B63F2776DA7B0C1B"><enum>(B)</enum><text>reducing the current
limits of coverage amounts established in <external-xref legal-doc="usc" parsable-cite="usc/44/61">section 61.6</external-xref> 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.</text>
</subparagraph></paragraph></subsection><subsection id="id67141C3181494F499E030FE8953C5B46"><enum>(b)</enum><header>Report of the Director
on activities under the National Flood Insurance Program</header>
<paragraph id="id055945C21BC14DD1AE93B7F72A12101D"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID883924deccd447118539d755bddaef69"><enum>(2)</enum><header>Timing</header><text>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.</text>
</paragraph><paragraph id="id97F45395AEDA4803A46080548F326256"><enum>(3)</enum><header>Contents</header><text>Each
report required under paragraph (1) shall include—</text>
<subparagraph id="ID0c32482dbf1a45a3b8c2519d26a18db9"><enum>(A)</enum><text>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—</text>
<clause id="id79B4B972FD154587907515A3EA25C50E"><enum>(i)</enum><text>premiums paid into such
Fund;</text>
</clause><clause id="id0FB52FBB54B445CDBECFB2272A2EC8B9"><enum>(ii)</enum><text>policy claims against
such Fund; and</text>
</clause><clause id="idED1C646BADCD4AD19104FDCEF7297EA5"><enum>(iii)</enum><text>expenses in
administering such Fund;</text>
</clause></subparagraph><subparagraph id="IDef87650354914400846760a297c141a3"><enum>(B)</enum><text>the number and face value
of all policies issued under the National Flood Insurance Program that are in
force;</text>
</subparagraph><subparagraph id="ID5fef38c86df9476fa0c1e8410defa1e5"><enum>(C)</enum><text>a description and summary
of the losses attributable to repetitive loss structures;</text>
</subparagraph><subparagraph id="ID0a9e6040ae6b4fd998e30f42b95cb027"><enum>(D)</enum><text>a description and summary
of all losses incurred by the National Flood Insurance Program due to—</text>
<clause id="id09B89E3C6425481FB769E253AF34FF4A"><enum>(i)</enum><text>hurricane related damage;
and</text>
</clause><clause id="id1115B7DFC9D8430A8E5D74F57B8C0C1B"><enum>(ii)</enum><text>nonhurricane related
damage;</text>
</clause></subparagraph><subparagraph id="IDc7b753eb5ad248c1be940880ecc91a55"><enum>(E)</enum><text>the amounts made
available by the Director for mitigation assistance under section 1366(e)(5) of
the National Flood Insurance Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/4104c">42 U.S.C. 4104c(e)(5)</external-xref>) 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;</text>
</subparagraph><subparagraph id="ID0f985f50bba74b38862934965dd1bea7"><enum>(F)</enum><text>the estimate of the
Director as to the average historical loss year, and the basis for that
estimate;</text>
</subparagraph><subparagraph id="ID7a4ea126a5a24c708ca4ca11529facd3"><enum>(G)</enum><text>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;</text>
</subparagraph><subparagraph id="ID1bd566260a0d4914ac68c0d3ffe1126a"><enum>(H)</enum><text>the average—</text>
<clause id="id36B2260BA09846F0969A2A54DF04C873"><enum>(i)</enum><text>amount of insurance
carried per flood insurance policy;</text>
</clause><clause id="idC45C89C2BDDB4AF2993C94297AE64584"><enum>(ii)</enum><text>premium per flood
insurance policy; and</text>
</clause><clause id="id28CC1342AA5A450EBC1EA372E79806BD"><enum>(iii)</enum><text>loss per flood
insurance policy; and</text>
</clause></subparagraph><subparagraph id="IDed42a8cc055f4c3aa82ea8b7efc989d8"><enum>(I)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCD4A7072FDB54D289B9CB3D09CB6EBEA"><enum>(c)</enum><header>GAO study on pre-FIRM
structures</header><text>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—</text>
<paragraph id="ID251abd63b091456c9460160bce7f3328"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDc9705e9cd5564e0fa39986376fb4210c"><enum>(2)</enum><text>number and fair market
value of such structures;</text>
</paragraph><paragraph id="IDe1827f1019b8434c92bcce47c0031a9c"><enum>(3)</enum><text>respective income level
of each owner of such structure;</text>
</paragraph><paragraph id="IDb1f8dd0d51b64594a5d1ede26569ac44"><enum>(4)</enum><text>number of times each such
structure has been sold since 1968, including specific dates, sales price, and
any other information the Secretary determines appropriate;</text>
</paragraph><paragraph id="ID1db704a4d7a2403bb6e930e845249456"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="IDc7820d7ecf094a94bf57823dcad9f9a7"><enum>(6)</enum><text>total cost of foregone
premiums since the establishment of the National Flood Insurance Program, as a
result of the subsidies provided to such structures;</text>
</paragraph><paragraph id="ID98707ff02d344e7caea19e2f3da74531"><enum>(7)</enum><text>annual cost to the
taxpayer, as a result of the subsidies provided to such structures;</text>
</paragraph><paragraph id="ID7c1420b6ca9145978f048939eb39cc39"><enum>(8)</enum><text>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</text>
</paragraph><paragraph id="IDc234dea5fea041c7840165aeb9066430"><enum>(9)</enum><text>the most efficient way to
eliminate the subsidy to such structures.</text>
</paragraph></subsection><subsection id="id74B2C6D792A84A1B8E89D50AADBEFBA2"><enum>(d)</enum><header>GAO review of FEMA
contractors</header><text>The Comptroller General of the United States, in
conjunction with the Department of Homeland Security's Inspectors general
Office, shall—</text>
<paragraph id="id13B405F40D5041B1B938F0DDE51FAF32"><enum>(1)</enum><text>conduct a review of the 3
largest contractors the Director uses in administering the National Flood
Insurance Program; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5DC64188CD814EBCBF8B7FF12A56AE4D"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><section id="id1B5D601D44154304937EAB3537991A38"><enum>133.</enum><header>Feasibility study on
private reinsurance</header><text display-inline="no-display-inline">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—</text>
<paragraph id="idE0C9A1CCAB5F44379FBD0CF143A39877"><enum>(1)</enum><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4055">42 U.S.C. 4055</external-xref>), to
underlying primary private insurers for losses arising due to flood insurance
coverage provided by such insurers;</text>
</paragraph><paragraph id="id402A5E48DD0E4B9BB60527F8F649D6DC"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="idFD3C36EC406946D6833F042435A6FA2B"><enum>(3)</enum><text>the estimated total
savings to the taxpayer of taking each such action described in paragraph (1)
or (2).</text>
</paragraph></section><section id="idF763B5809C35499AB2AE1B0C3A0643A6"><enum>134.</enum><header>Policy
disclosures</header>
<subsection id="idFE1E1A2A55A344918663817FE7817CD7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="id342A0A489A714C98A4FA46DAF93B76AE"><enum>(b)</enum><header>Violations</header><text>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.</text>
</subsection></section><section id="HF320C7F638734D4F889CECC3D861FE88"><enum>135.</enum><header>Report on inclusion of
building codes in floodplain management criteria</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H58F503280CBA4802B43B302B4BEDF72"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H0B4AF27CF22346B7B3DB29B7AA2113B1"><enum>(2)</enum><text>the resources required of
State and local communities to administer and enforce such a building code
requirement;</text>
</paragraph><paragraph id="HAF143054D02744BBA9BB8FFD3305DFA3"><enum>(3)</enum><text>the effectiveness of such
a building code requirement in reducing flood-related damage to buildings and
contents;</text>
</paragraph><paragraph id="HD5A77D2A0FD64818B137DC33CB5DDC4B"><enum>(4)</enum><text>the impact of such a
building code requirement on the actuarial soundness of the National Flood
Insurance Program;</text>
</paragraph><paragraph id="HA9AA01ED689445C88D3DC8DD41C9280"><enum>(5)</enum><text>the effectiveness of
nationally recognized codes in allowing innovative materials and systems for
flood-resistant construction; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H550F511BCF884946A0A47DACFA8BEA"><enum>(6)</enum><text>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.</text>
</paragraph></section><enum>II</enum><header>Commission on Natural
Catastrophe Risk Management and Insurance </header>
<section id="idA63E0638687F471B983DFA5F8E63F111"><enum>201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Commission on Natural Catastrophe Risk Management and Insurance
Act of 2008</quote>.</text>
</section><section id="id0A8F283E693C42EF8932F8D8CCF62438"><enum>202.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph id="ID5f3a2205a56b47d5a7910bb35d18f4a8"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="ID6332f0757d5f4c099802a91d93127f4a"><enum>(2)</enum><text>many meteorologists
predict that the United States is in a period of increased hurricane
activity;</text>
</paragraph><paragraph id="IDb1cb82ed50094e6fba1f691640c3ffdd"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="ID461332f241944aeab796299cb2589cc6"><enum>(4)</enum><text>many Americans are
finding it increasingly difficult to obtain and afford property and casualty
insurance coverage;</text>
</paragraph><paragraph id="id43FCDFD6907346BBB297BBF629A26393"><enum>(5)</enum><text>some insurers are not
renewing insurance policies, are excluding certain risks, such as wind damage,
and are increasing rates and deductibles in some markets;</text>
</paragraph><paragraph id="IDb4036fc55d1f47cea5abb4b4d134a84e"><enum>(6)</enum><text>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;</text>
</paragraph><paragraph id="IDa1b93a7b055e43398b23977a8c6e3c45"><enum>(7)</enum><text>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;</text>
</paragraph><paragraph id="id4D12C43E98634701AFB990CAB3647856"><enum>(8)</enum><text>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;</text>
</paragraph><paragraph id="IDac5a909951c64e2fa55ef6b199e57066"><enum>(9)</enum><text>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</text>
</paragraph><paragraph id="IDe99b9a505473491a8c66b3dd03c95e4a"><enum>(10)</enum><text>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.</text>
</paragraph></section><section id="IDa24d84ab302e40d3b63f158eef6ef997"><enum>203.</enum><header>Establishment</header><text display-inline="no-display-inline">There is established a nonpartisan
Commission on Natural Catastrophe Risk Management and Insurance (in this title
referred to as the <quote>Commission</quote>).</text>
</section><section id="ID31151c6c1afc4787a74af334788f7adb"><enum>204.</enum><header>Membership</header>
<subsection id="idAACA2C70C484417FBABB3C100084293F"><enum>(a)</enum><header>Appointment</header><text>The
Commission shall be composed of 16 members, of whom—</text>
<paragraph id="ID7c585575c02e41dba5559af560054476"><enum>(1)</enum><text>2 members shall be
appointed by the majority leader of the Senate;</text>
</paragraph><paragraph id="ID67fa1b7ea6f04dc18bc3c0aed319d64a"><enum>(2)</enum><text>2 members shall be
appointed by the minority leader of the Senate;</text>
</paragraph><paragraph id="ID0f66cd2c9f8646e39b7bd360707f0814"><enum>(3)</enum><text>2 members shall be
appointed by the Speaker of the House of Representatives;</text>
</paragraph><paragraph id="IDb2a9bb13dc0b47348b200d9de473ca77"><enum>(4)</enum><text>2 members shall be
appointed by the minority leader of the House of Representatives;</text>
</paragraph><paragraph id="ID5d036a09f550448980677270a715c0d8"><enum>(5)</enum><text>2 members shall be
appointed by the Chairman of the Committee on Banking, Housing, and Urban
Affairs of the Senate;</text>
</paragraph><paragraph id="ID9beeb7380a46428886e0c2c1aca48725"><enum>(6)</enum><text>2 members shall be
appointed by the Ranking Member of the Committee on Banking, Housing, and Urban
Affairs of the Senate;</text>
</paragraph><paragraph id="ID527be8a482db49adaa085c69acb50913"><enum>(7)</enum><text>2 members shall be
appointed by the Chairman of the Committee on Financial Services of the House
of Representatives; and</text>
</paragraph><paragraph id="ID6edf97b7c5cd45f0aa60d126e6f4a524"><enum>(8)</enum><text>2 members shall be
appointed by the Ranking Member of the Committee on Financial Services of the
House of Representatives.</text>
</paragraph></subsection><subsection id="ID3514d92095be403980f17189bd9d61bc"><enum>(b)</enum><header>Qualification of
members</header>
<paragraph id="ID6fb2550fafd741669c45caa3ee4e4366"><enum>(1)</enum><header>In
general</header><text>Members of the Commission shall be appointed under
subsection (a) from among persons who—</text>
<subparagraph id="IDed3c9bc259284ca088182a3d604c874e"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDb1400a9bc1da4109a0db658d8c066581"><enum>(B)</enum><text>are not officers or
employees of the United States Government or of any State government.</text>
</subparagraph></paragraph><paragraph id="idE9D68FA446994D559C8C13F2A4A1D4A6"><enum>(2)</enum><header>Diversity</header><text>In
making appointments to the Commission—</text>
<subparagraph id="ID1da8318c9f9140bfbc5a690c3f450967"><enum>(A)</enum><text>every effort shall be
made to ensure that the members are representative of a broad cross section of
perspectives within the United States; and</text>
</subparagraph><subparagraph id="idB92A41B8F85348BB803351FE0E6222A9"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="IDe4210e8a718940dc981cb432a46e359d"><enum>(c)</enum><header>Period of
appointment</header>
<paragraph id="IDc45ac28a77034bd5bb31913ca7a09796"><enum>(1)</enum><header>In
general</header><text>Each member of the Commission shall be appointed for the
duration of the Commission.</text>
</paragraph><paragraph id="ID23ac00f53db14c65a0161aedfa8708be"><enum>(2)</enum><header>Vacancies</header><text>A
vacancy on the Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.</text>
</paragraph></subsection><subsection id="IDb90d8e3dab5743998d176ee6fc94e76d"><enum>(d)</enum><header>Quorum</header>
<paragraph id="IDfffde3e830574145829cb3011a20e5e4"><enum>(1)</enum><header>Majority</header><text>A
majority of the members of the Commission shall constitute a quorum, but a
lesser number, as determined by the Commission, may hold hearings.</text>
</paragraph><paragraph id="ID16cfb697190e4648824db91ec03bab3f"><enum>(2)</enum><header>Approval
actions</header><text>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.</text>
</paragraph></subsection><subsection id="IDd46da931a773449c960521dfe2fb23ef"><enum>(e)</enum><header>Chairperson</header><text>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
<quote>Chairperson</quote>).</text>
</subsection><subsection id="ID788279e755f4441a8e9e65dbec681c12"><enum>(f)</enum><header>Meetings</header><text>The
Commission shall meet at the call of its Chairperson or a majority of the
members.</text>
</subsection></section><section id="ID2716892172aa45c6b16de0d3b4b023b5"><enum>205.</enum><header>Duties of the
Commission</header><text display-inline="no-display-inline">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—</text>
<paragraph id="IDefa754c9c34448a1805f09a1f1fdcd9d"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="ID35e46c8f8a064af1bc27ec7eab2e313b"><enum>(2)</enum><text>the current condition of,
as well as the outlook for, the availability and affordability of insurance in
all regions of the country;</text>
</paragraph><paragraph id="ID04d1e963d8384e3ab272e6c704ea8c74"><enum>(3)</enum><text>the current ability of
States, communities, and individuals to mitigate their natural catastrophe
risks, including the affordability and feasibility of such activities;</text>
</paragraph><paragraph id="IDeb01ba1667aa4804bc831622eb690fd8"><enum>(4)</enum><text>the ongoing exposure of
the United States to natural catastrophes, including hurricanes, earthquakes,
volcanic eruptions, tsunamis, tornados, flooding, wildfires, droughts, and
other natural catastrophes;</text>
</paragraph><paragraph id="IDaca03af57c7343a0b5e14e3a302629f5"><enum>(5)</enum><text>the catastrophic
insurance and reinsurance markets and the relevant practices in providing
insurance protection to different sectors of the American population;</text>
</paragraph><paragraph id="ID09674a6cd2d04270b200c0a28065116a"><enum>(6)</enum><text>implementation of a
catastrophic insurance system that can resolve key obstacles currently impeding
broader implementation of catastrophic risk management and financing with
insurance;</text>
</paragraph><paragraph id="IDa8dadd14fb804275a443b0d55d7627bd"><enum>(7)</enum><text>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;</text>
</paragraph><paragraph id="ID3e0b5b3c19bf4dd3a9578310528de5cc"><enum>(8)</enum><text>methods to promote public
insurance policies to reduce losses caused by natural catastrophes in the
uninsured sectors of the American population;</text>
</paragraph><paragraph id="ID8c2a23140dc04e30aacbdf996b67692d"><enum>(9)</enum><text>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;</text>
</paragraph><paragraph id="ID5fad20dcf29b49d78182e08cc84ea9a1"><enum>(10)</enum><text>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—</text>
<subparagraph id="id631CA9C3F2984E3CB92D42B8D1A7F0C7"><enum>(A)</enum><text>the affordability and
availability of catastrophe insurance;</text>
</subparagraph><subparagraph id="id0A82B4D84C10470EB5430718E9EE16B5"><enum>(B)</enum><text>the capacity of the
private insurance market to cover losses inflicted by natural
catastrophes;</text>
</subparagraph><subparagraph id="id4D317395A59148A5911E5A28AF43F811"><enum>(C)</enum><text>the commercial and
residential development of high-risk areas; and</text>
</subparagraph><subparagraph id="id47A9E948B080452CAE73CD418A99F3BB"><enum>(D)</enum><text>the costs of natural
catastrophes to Federal and State taxpayers;</text>
</subparagraph></paragraph><paragraph id="ID506d97e356374b8a98c51bf7a0428cad"><enum>(11)</enum><text>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;</text>
</paragraph><paragraph id="ID0360d72dafc740df81f47479d1145d54"><enum>(12)</enum><text>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;</text>
</paragraph><paragraph id="ID9c7b5a6174c446a6b23c393c1b7c839a"><enum>(13)</enum><text>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;</text>
</paragraph><paragraph id="ID6d79b1a07ce94dfa8b8f4f7f53d30623"><enum>(14)</enum><text>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);</text>
</paragraph><paragraph id="IDb3a2d1453e4045738e9db08de4d4f0df"><enum>(15)</enum><text>the ability of the
United States private insurance market—</text>
<subparagraph id="idDFAF00EEF767473ABD8B56F13C0F9803"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="id08C555FF637B402BBC1A4325E57DACB4"><enum>(B)</enum><text>to recover after covering
substantial insured losses caused by natural catastrophes;</text>
</subparagraph></paragraph><paragraph id="ID1d3c16d4f96249ffbb49baa5bc335a03"><enum>(16)</enum><text>the impact that
demographic trends could have on the amount of insured losses inflicted by
future natural catastrophes;</text>
</paragraph><paragraph id="ID5a052ce6f75c4fa584e99ae2ba3c4f5f"><enum>(17)</enum><text>the appropriate role, if
any, for the Federal Government in stabilizing the property and casualty
insurance and reinsurance markets; and</text>
</paragraph><paragraph id="IDee13859085434e07bce575f4c69e8375"><enum>(18)</enum><text>the role of the Federal,
State, and local governments in providing incentives for feasible risk
mitigation efforts.</text>
</paragraph></section><section id="ID2ca64e95d6bf40319948e711c1f4e916"><enum>206.</enum><header>Report</header>
<subsection id="id7552C9003CF34C77A8FDFD93C50616F3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="id5151EB4DBC9449B4B833C9E0578EF444"><enum>(1)</enum><text display-inline="yes-display-inline">a detailed statement of the findings and
assessments conducted by the Commission pursuant to section 205; and</text>
</paragraph><paragraph id="id30A5F390D1AF45A78C74F69734B405A0"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="idF7F64402B8D2467CA96DE597BD64A03B"><enum>(b)</enum><header>Extension of
time</header><text>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.</text>
</subsection></section><section id="ID56e6f74cbf84442f9fe28ebdbf713b6b"><enum>207.</enum><header>Powers of the
Commission</header>
<subsection id="idCE6DB32C00BA4796A1F5E8ACFF3090AA"><enum>(a)</enum><header>Meetings;
hearings</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="ID72a3d8b4d60e489e94c355ed5d1c005c"><enum>(b)</enum><header>Authority of members or
agents of the Commission</header><text>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.</text>
</subsection><subsection id="ID926b94e096154c3a86b216e9032d31f4"><enum>(c)</enum><header>Obtaining official
data</header>
<paragraph id="ID10c97e1fea064605914de3f1dec6ae1b"><enum>(1)</enum><header>Authority</header><text>Notwithstanding
any provision of <external-xref legal-doc="usc" parsable-cite="usc/5/552a">section 552a</external-xref> 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.</text>
</paragraph><paragraph id="IDf81fbd60535b425a968f59b12994cd8f"><enum>(2)</enum><header>Procedure</header><text>Upon
request of the Chairperson, the head of such department or agency shall furnish
to the Commission the information requested.</text>
</paragraph></subsection><subsection id="ID8542c85fd60f4a6faa3cd6589733aa04"><enum>(d)</enum><header>Postal
services</header><text>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.</text>
</subsection><subsection id="ID59c7d05904f544359b7bf16d9701d54b"><enum>(e)</enum><header>Administrative support
services</header><text>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.</text>
</subsection><subsection id="id6DFE9BFA2AEF4BB99215736DDD8CF365"><enum>(f)</enum><header>Acceptance of
gifts</header><text>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.</text>
</subsection><subsection id="ID8b0b93a9a81049209e044ed04fa06041"><enum>(g)</enum><header>Volunteer
services</header><text>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.</text>
</subsection><subsection id="IDdefdf2222aec40419c62ff68f2b8f31d"><enum>(h)</enum><header>Federal Property and
Administrative Services Act of 1949</header><text>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.</text>
</subsection><subsection id="IDfeb7241961184b09b5b9f308809cd0cf"><enum>(i)</enum><header>Limitation on
contracts</header><text>A contract or other legal agreement entered into by the
Commission may not extend beyond the date of the termination of the
Commission.</text>
</subsection></section><section id="ID5660ea89c564461fb34debb1973de7a2"><enum>208.</enum><header>Commission personnel
matters</header>
<subsection id="idCB237EB02CD04292BADD1614B58AAFF8"><enum>(a)</enum><header>Travel
expenses</header><text display-inline="yes-display-inline">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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, while away from their homes or
regular places of business in the performance of services for the
Commission.</text>
</subsection><subsection id="ID9e9a28d61ae346cb95ea474213e7b5f7"><enum>(b)</enum><header>Subcommittees</header><text>The
Commission may establish subcommittees and appoint members of the Commission to
such subcommittees as the Commission considers appropriate.</text>
</subsection><subsection id="ID226947b7126b4ec78f78b2ff97c95cc5"><enum>(c)</enum><header>Staff</header><text>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.</text>
</subsection><subsection id="IDdcea19b5abc249c5b745cb38ba76bc58"><enum>(d)</enum><header>Applicability of
certain civil service laws</header><text>Staff of the Commission may be—</text>
<paragraph id="ID7fd663db52ad43448eddbb8b0baed469"><enum>(1)</enum><text>appointed without regard
to the provisions of title 5, United States Code, governing appointments in the
competitive service; and</text>
</paragraph><paragraph id="ID71cbbad979434ed89b39cb2743b28cd1"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID62bbde1540f54ffe94785e8f42012359"><enum>(e)</enum><header>Experts and
consultants</header><text>In carrying out its objectives, the Commission may
procure temporary and intermittent services of consultants and experts under
<external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109(b)</external-xref> 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.</text>
</subsection><subsection id="idD433BCEF31424F6C8F2B12F9DFEEA768"><enum>(f)</enum><header>Detail of government
employees</header><text>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—</text>
<paragraph id="IDded9f6e89ee04bb9af2a65b470a71612"><enum>(1)</enum><text>on a reimbursable basis;
and</text>
</paragraph><paragraph id="IDf8cc831639b049eda9f92145ef4928cc"><enum>(2)</enum><text>such detail shall be
without interruption or loss of civil service status or privilege.</text>
</paragraph></subsection></section><section id="IDae6a2ef7e54c4ef582f3c5f7612a22cf"><enum>209.</enum><header>Termination</header><text display-inline="no-display-inline">The Commission shall terminate 90 days after
the date on which the Commission submits its report under section 206.</text>
</section><section commented="no" display-inline="no-display-inline" id="IDfd0dde27e42f4f26a001033058b5b81f" section-type="subsequent-section"><enum>210.</enum><header>Authorization of
appropriations</header><text display-inline="no-display-inline">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.</text>
</section><enum>III</enum><header>Miscellaneous</header>
<section id="idB9D5DF0FC08C4AB691953402923FAE42"><enum>301.</enum><header>Big Sioux River and
Skunk Creek, Sioux Falls, South Dakota</header><text display-inline="no-display-inline">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.</text>
</section><section id="idD46564D6597B444FA9033FB94CBD6491" section-type="subsequent-section"><enum>302.</enum><header>Suspension of
petroleum acquisition for Strategic Petroleum Reserve</header>
<subsection id="IDf6b5315e5380494d9ef666162ce44de3"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="ID599558c55e0d45deb0e7322e674bdd37"><enum>(1)</enum><text>the Secretary of the
Interior shall suspend acquisition of petroleum for the Strategic Petroleum
Reserve through the royalty-in-kind program; and</text>
</paragraph><paragraph id="ID8b79a985d5d747a3b822aed79f8fc852"><enum>(2)</enum><text>the Secretary of Energy
shall suspend acquisition of petroleum for the Strategic Petroleum Reserve
through any other acquisition method.</text>
</paragraph></subsection><subsection id="ID2457cc0f680d43b58bf137977502f5ce"><enum>(b)</enum><header>Resumption</header><text>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—</text>
<paragraph id="ID7aa2a1acdcc340cc8b538830da3fc4d2"><enum>(1)</enum><text>the Secretary of the
Interior may resume acquisition of petroleum for the Strategic Petroleum
Reserve through the royalty-in-kind program; and</text>
</paragraph><paragraph id="IDe38d846e498b45579facce32417508f3"><enum>(2)</enum><text>the Secretary of Energy
may resume acquisition of petroleum for the Strategic Petroleum Reserve through
any other acquisition method.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4CFE05FBA3964ABBA2B5CB7691B14D6B"><enum>(c)</enum><header>Existing
contracts</header><text>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.</text>
</subsection></section>
Secretary