[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3121 Referred in Senate (RFS)]

  1st Session
                                H. R. 3121


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2007

     Received; read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Flood Insurance 
Reform and Modernization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Study regarding status of pre-firm properties and mandatory 
                            purchase requirement for natural 100-year 
                            floodplain and non-federally related loans.
Sec. 4. Phase-in of actuarial rates for nonresidential properties and 
                            non-primary residences.
Sec. 5. Exception to waiting period for effective date of policies.
Sec. 6. Enforcement.
Sec. 7. Multiperil coverage for flood and windstorm.
Sec. 8. Maximum coverage limits.
Sec. 9. Coverage for additional living expenses, basement improvements, 
                            business interruption, and replacement cost 
                            of contents.
Sec. 10. Notification to tenants of availability of contents insurance.
Sec. 11. Increase in annual limitation on premium increases.
Sec. 12. Report regarding borrowing authority.
Sec. 13. FEMA participation in State disaster claims mediation 
                            programs.
Sec. 14. FEMA annual report on insurance program.
Sec. 15. Flood insurance outreach.
Sec. 16. Grants for direct funding of mitigation activities for 
                            individual repetitive claims properties.
Sec. 17. Extension of pilot program for mitigation of severe repetitive 
                            loss properties.
Sec. 18. Flood mitigation assistance program.
Sec. 19. GAO study of methods to increase flood insurance program 
                            participation by low-income families.
Sec. 20. Notice of availability of flood insurance and escrow in RESPA 
                            good faith estimate.
Sec. 21. Reiteration of FEMA responsibilities under 2004 Reform Act.
Sec. 22. Ongoing modernization of flood maps and elevation standards.
Sec. 23. Notification and appeal of map changes; notification of 
                            establishment of flood elevations.
Sec. 24. Clarification of replacement cost provisions, forms, and 
                            policy language.
Sec. 25. Authorization of additional FEMA staff.
Sec. 26. Extension of deadline for filing proof of loss.
Sec. 27. 5-year extension of program.
Sec. 28. Report on inclusion of building codes in floodplain management 
                            criteria.
Sec. 29. Study of economic effects of charging actuarially-based 
                            premium rates for pre-firm structures.
Sec. 30. Prohibition on enforcement of penalty assessed on condominium 
                            associations.
Sec. 31. Report of administrative expenses of write-your-own insurers; 
                            independent audits.
Sec. 32. Plan to verify maintenance of flood insurance on Mississippi 
                            and Louisiana properties receiving 
                            emergency supplemental funds.
Sec. 33. GAO study of factors affecting enrollment in multiperil 
                            insurance program.
Sec. 34. National flood insurance advocate; reports.
Sec. 35. Requirements relating to windstorm and flood.
Sec. 36. Notations on flood insurance rate maps for areas protected 
                            against 100-year and 500-year floods by 
                            certified flood control structure.

SEC. 2. FINDINGS AND PURPOSES.

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

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

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

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

    (a) In General.--Section 1308(c) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(c)) is amended--
            (1) by redesignating paragraph (2) as paragraph (4); and
            (2) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) Nonresidential properties.--Any nonresidential 
        property, which term shall not include any multifamily rental 
        property that consists of four or more dwelling units.
            ``(3) Non-primary residences.--Any residential property 
        that is not the primary residence of any individual, including 
        the owner of the property or any other individual who resides 
        in the property as a tenant.''.
    (b) Technical Amendments.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``the limitations provided under paragraphs 
                (1) and (2)'' and inserting ``subsection (e)''; and
                    (B) in paragraph (1), by striking ``, except'' and 
                all that follows through ``subsection (e)''; and
            (2) in subsection (e), by striking ``paragraph (2) or (3)'' 
        and inserting ``paragraph (4)''.
    (c) Effective Date and Transition.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall apply beginning on January 1, 2011, except as 
        provided in paragraph (2) of this subsection.
            (2) Transition for properties covered by flood insurance 
        upon effective date.--
                    (A) Increase of rates over time.--In the case of 
                any property described in paragraph (2) or (3) of 
                section 1308(c) of the National Flood Insurance Act of 
                1968, as amended by subsection (a) of this section, 
                that, as of the effective date under paragraph (1) of 
                this subsection, is covered under a policy for flood 
                insurance made available under the national flood 
                insurance program for which the chargeable premium 
                rates are less than the applicable estimated risk 
                premium rate under section 1307(a)(1) for the area in 
                which the property is located, the Director of the 
                Federal Emergency Management Agency shall increase the 
                chargeable premium rates for such property over time to 
                such applicable estimated risk premium rate under 
                section 1307(a)(1).
                    (B) Annual increase.--Such increase shall be made 
                by increasing the chargeable premium rates for the 
                property (after application of any increase in the 
                premium rates otherwise applicable to such property), 
                once during the 12-month period that begins upon the 
                effective date under paragraph (1) of this subsection 
                and once every 12 months thereafter until such increase 
                is accomplished, by 15 percent (or such lesser amount 
                as may be necessary so that the chargeable rate does 
                not exceed such applicable estimated risk premium rate 
                or to comply with subparagraph (C)). Any increase in 
                chargeable premium rates for a property pursuant to 
                this paragraph shall not be considered for purposes of 
                the limitation under section 1308(e) of such Act.
                    (C) Properties subject to phase-in and annual 
                increases.--In the case of any pre-FIRM property (as 
                such term is defined in section 578(b) of the National 
                Flood Insurance Reform Act of 1974), the aggregate 
                increase, during any 12-month period, in the chargeable 
                premium rate for the property that is attributable to 
                this paragraph or to an increase described in section 
                1308(e) of the National Flood Insurance Act of 1968 may 
                not exceed the following percentage:
                            (i) Nonresidential properties.--In the case 
                        of any property described in such section 
                        1308(c)(2), 20 percent.
                            (ii) Non-primary residences.--In the case 
                        of any property described in such section 
                        1308(c)(3), 25 percent.
                    (D) Full actuarial rates.--The provisions of 
                paragraphs (2) and (3) of such section 1308(c) shall 
                apply to such a property upon the accomplishment of the 
                increase under this paragraph and thereafter.

SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.

    Section 1306(c)(2)(A) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon 
the following: ``or is in connection with the purchase or other 
transfer of the property for which the coverage is provided (regardless 
of whether a loan is involved in the purchase or transfer transaction), 
but only when such initial purchase of coverage is made not later 30 
days after such making, increasing, extension, or renewal of the loan 
or not later than 30 days after such purchase or other transfer of the 
property, as applicable''.

SEC. 6. ENFORCEMENT.

    Section 102(f) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)) is amended--
            (1) in paragraph (5)--
                    (A) in the first sentence, by striking ``$350'' and 
                inserting ``$2,000''; and
                    (B) in the last sentence, by striking ``$100,000'' 
                and inserting ``$1,000,000; except that such limitation 
                shall not apply to a regulated lending institution or 
                enterprise for a calendar year if, in any three (or 
                more) of the five calendar years immediately preceding 
                such calendar year, the total amount of penalties 
                assessed under this subsection against such lending 
                institution or enterprise was $1,000,000''; and
            (2) in paragraph (6), by adding after the period at the end 
        the following: ``No penalty may be imposed under this 
        subsection on a regulated lending institution or enterprise 
        that has made a good faith effort to comply with the 
        requirements of the provisions referred to in paragraph (2) or 
        for any non-material violation of such requirements.''.

SEC. 7. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.

    (a) In General.--Section 1304 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Multiperil Coverage for Damage From Flood or Windstorm.--
            ``(1) In general.--Subject to paragraph (8), the national 
        flood insurance program established pursuant to subsection (a) 
        shall enable the purchase of optional insurance against loss 
        resulting from physical damage to or loss of real property or 
        personal property related thereto located in the United States 
        arising from any flood or windstorm, subject to the limitations 
        in this subsection and section 1306(b).
            ``(2) Community participation requirement.--Multiperil 
        coverage pursuant to this subsection may not be provided in any 
        area (or subdivision thereof) unless an appropriate public body 
        shall have adopted adequate mitigation measures (with effective 
        enforcement provisions) which the Director finds are consistent 
        with the criteria for construction described in the 
        International Code Council building codes relating to wind 
        mitigation.
            ``(3) Prohibition against duplicative coverage.--Multiperil 
        coverage pursuant to this subsection may not be provided with 
        respect to any structure (or the personal property related 
        thereto) for any period during which such structure is covered, 
        at any time, by flood insurance coverage made available under 
        this title.
            ``(4) Nature of coverage.--Multiperil coverage pursuant to 
        this subsection shall--
                    ``(A) cover losses only from physical damage 
                resulting from flooding or windstorm; and
                    ``(B) provide for approval and payment of claims 
                under such coverage upon proof that such loss must have 
                resulted from either windstorm or flooding, but shall 
                not require for approval and payment of a claim that 
                the specific cause of the loss, whether windstorm or 
                flooding, be distinguished or identified.
            ``(5) Actuarial rates.--Multiperil coverage pursuant to 
        this subsection shall be made available for purchase for a 
        property only at chargeable risk premium rates that, based on 
        consideration of the risks involved and accepted actuarial 
        principles, and including operating costs and allowance and 
        administrative expenses, are required in order to make such 
        coverage available on an actuarial basis for the type and class 
        of properties covered.
            ``(6) Terms of coverage.--The Director shall, after 
        consultation with persons and entities referred to in section 
        1306(a), provide by regulation for the general terms and 
        conditions of insurability which shall be applicable to 
        properties eligible for multiperil coverage under this 
        subsection, subject to the provisions of this subsection, 
        including--
                    ``(A) the types, classes, and locations of any such 
                properties which shall be eligible for such coverage, 
                which shall include residential and nonresidential 
                properties;
                    ``(B) subject to paragraph (7), the nature and 
                limits of loss or damage in any areas (or subdivisions 
                thereof) which may be covered by such coverage;
                    ``(C) the classification, limitation, and rejection 
                of any risks which may be advisable;
                    ``(D) appropriate minimum premiums;
                    ``(E) appropriate loss deductibles; and
                    ``(F) any other terms and conditions relating to 
                insurance coverage or exclusion that may be necessary 
                to carry out this subsection.
            ``(7) Limitations on amount of coverage.--The regulations 
        issued pursuant to paragraph (6) shall provide that the 
        aggregate liability under multiperil coverage made available 
        under this subsection shall not exceed the lesser of the 
        replacement cost for covered losses or the following amounts, 
        as applicable:
                    ``(A) Residential structures.--In the case of 
                residential properties, which shall include structures 
                containing multiple dwelling units that are made 
                available for occupancy by rental (notwithstanding any 
                treatment or classification of such properties for 
                purposes of section 1306(b))--
                            ``(i) for any single-family dwelling, 
                        $500,000;
                            ``(ii) for any structure containing more 
                        than one dwelling unit, $500,000 for each 
                        separate dwelling unit in the structure, which 
                        limit, in the case of such a structure 
                        containing multiple dwelling units that are 
                        made available for occupancy by rental, shall 
                        be applied so as to enable any insured or 
                        applicant for insurance to receive coverage for 
                        the structure up to a total amount that is 
                        equal to the product of the total number of 
                        such rental dwelling units in such property and 
                        the maximum coverage limit per dwelling unit 
                        specified in this clause; and
                            ``(iii) $150,000 per dwelling unit for--
                                    ``(I) any contents related to such 
                                unit; and
                                    ``(II) any necessary increases in 
                                living expenses incurred by the insured 
                                when losses from flooding or windstorm 
                                make the residence unfit to live in.
                    ``(B) Nonresidential properties.--In the case of 
                nonresidential properties (including church 
                properties)--
                            ``(i) $1,000,000 for any single structure; 
                        and
                            ``(ii) $750,000 for--
                                    ``(I) any contents related to such 
                                structure; and
                                    ``(II) in the case of any 
                                nonresidential property that is a 
                                business property, any losses resulting 
                                from any partial or total interruption 
                                of the insured's business caused by 
                                damage to, or loss of, such property 
                                from flooding or windstorm, except that 
                                for purposes of such coverage, losses 
                                shall be determined based on the 
                                profits the covered business would have 
                                earned, based on previous financial 
                                records, had the flood or windstorm not 
                                occurred.
            ``(8) Requirement to cease offering coverage if borrowing 
        to pay claims.--If at any time the Director utilizes the 
        borrowing authority under section 1309(a) for the purpose of 
        obtaining amounts to pay claims under multiperil coverage made 
        available under this subsection, the Director may not, during 
        the period beginning upon the initial such use of such 
        borrowing authority and ending upon repayment to the Secretary 
        of the Treasury of the full amount of all outstanding notes and 
        obligations issued by the Director for such purpose, together 
        with all interest owed on such notes and obligations, enter 
        into any new policy, or renew any existing policy, for coverage 
        made available under this subsection.
            ``(9) Effective date.--This subsection shall take effect 
        on, and shall apply beginning on, June 30, 2008.''.
    (b) Prohibition Against Duplicative Coverage.--The National Flood 
Insurance Act of 1968 is amended by inserting after section 1313 (42 
U.S.C. 4020) the following new section:

               ``prohibition against duplicative coverage

    ``Sec. 1314.  Flood insurance under this title may not be provided 
with respect to any structure (or the personal property related 
thereto) for any period during which such structure is covered, at any 
time, by multiperil insurance coverage made available pursuant to 
section 1304(c).''.
    (c) Compliance With State and Local Law.--Section 1316 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4023) is amended--
            (1) by inserting ``(a) Flood Protection Measures.--'' 
        before ``No new''; and
            (2) by adding at the end the following new subsection:
    ``(b) Windstorm Protection Measures.--No new multiperil coverage 
shall be provided under section 1304(c) for any property that the 
Director finds has been declared by a duly constituted State or local 
zoning authority, or other authorized public body to be in violation of 
State or local laws, regulations, or ordinances, which are intended to 
reduce damage caused by windstorms.''.
    (d) Criteria for Land Management and Use.--Section 1361 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102) is amended by 
adding at the end the following new subsection:
    ``(d) Windstorms.--
            ``(1) Studies and investigations.--The Director shall carry 
        out studies and investigations under this section to determine 
        appropriate measures in wind events as to wind hazard 
        prevention, and may enter into contracts, agreements, and other 
        appropriate arrangements to carry out such activities. Such 
        studies and investigations shall include laws, regulations, and 
        ordinance relating to the orderly development and use of areas 
        subject to damage from windstorm risks, and zoning building 
        codes, building permits, and subdivision and other building 
        restrictions for such areas.
            ``(2) Criteria.--On the basis of the studies and 
        investigations pursuant to paragraph (1) and such other 
        information as may be appropriate, the Direct shall establish 
        comprehensive criteria designed to encourage, where necessary, 
        the adoption of adequate State and local measures which, to the 
        maximum extent feasible, will assist in reducing damage caused 
        by windstorms, discourage density and intensity or range of use 
        increases in locations subject to windstorm damage, and enforce 
        restrictions on the alteration of wetlands coastal dunes and 
        vegetation and other natural features that are known to prevent 
        or reduce such damage.
            ``(3) Coordination with state and local governments.--The 
        Director shall work closely with and provide any necessary 
        technical assistance to State, interstate, and local 
        governmental agencies, to encourage the application of criteria 
        established under paragraph (2) and the adoption and 
        enforcement of measures referred to in such paragraph.''.
    (e) Definitions.--Section 1370 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4121) is amended--
            (1) in paragraph (14), by striking ``and'' at the end;
            (2) in paragraph (15) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(16) the term `windstorm' means any hurricane, tornado, 
        cyclone, typhoon, or other wind event.''.

SEC. 8. MAXIMUM COVERAGE LIMITS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$335,000'';
            (2) in paragraph (3), by striking ``$100,000'' and 
        inserting ``$135,000''; and
            (3) in paragraph (4)--
                    (A) by striking ``$500,000'' each place such term 
                appears and inserting ``$670,000''; and
                    (B) by inserting before ``; and'' the following: 
                ``; except that, in the case of any nonresidential 
                property that is a structure containing more than one 
                dwelling unit that is made available for occupancy by 
                rental (notwithstanding the provisions applicable to 
                the determination of the risk premium rate for such 
                property), additional flood insurance in excess of such 
                limits shall be made available to every insured upon 
                renewal and every applicant for insurance so as to 
                enable any such insured or applicant to receive 
                coverage up to a total amount that is equal to the 
                product of the total number of such rental dwelling 
                units in such property and the maximum coverage limit 
                per dwelling unit specified in paragraph (2); except 
                that in the case of any such multi-unit, nonresidential 
                rental property that is a pre-FIRM structure (as such 
                term is defined in section 578(b) of the National Flood 
                Insurance Reform Act of 1994 (42 U.S.C. 4014 note)), 
                the risk premium rate for the first $500,000 of 
                coverage shall be determined in accordance with section 
                1307(a)(2) and the risk premium rate for any coverage 
                in excess of such amount shall be determined in 
                accordance with section 1307(a)(1)''.

SEC. 9. COVERAGE FOR ADDITIONAL LIVING EXPENSES, BASEMENT IMPROVEMENTS, 
              BUSINESS INTERRUPTION, AND REPLACEMENT COST OF CONTENTS.

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

SEC. 10. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1308 (42 U.S.C. 4015) the following new section:

``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
              INSURANCE.

    ``(a) In General.--The Director shall, upon entering into a 
contract for flood insurance coverage under this title for any property 
located in an area having special flood hazards--
            ``(1) provide to the insured sufficient copies of the 
        notice developed pursuant to subsection (b); and
            ``(2) strongly encourage the insured to provide a copy of 
        the notice, or otherwise provide notification of the 
        information under subsection (b) in the manner that the manager 
        or landlord deems most appropriate, to each such tenant and to 
        each new tenant upon commencement of such a tenancy.
    ``(b) Notice.--Notice to a tenant of a property in accordance with 
this subsection is written notice that clearly informs a tenant--
            ``(1) that the property is located in an area having 
        special flood hazards;
            ``(2) that flood insurance coverage is available under the 
        national flood insurance program under this title for contents 
        of the unit or structure leased by the tenant;
            ``(3) of the maximum amount of such coverage for contents 
        available under this title at that time; and
            ``(4) of where to obtain information regarding how to 
        obtain such coverage, including a telephone number, mailing 
        address, and location on the World Wide Web of the Director 
        where such information is available.''.

SEC. 11. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.

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

SEC. 12. REPORT REGARDING BORROWING AUTHORITY.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Director of the Federal 
Emergency Management Agency shall submit a report to the Congress 
setting forth a plan for repaying within 10 years all amounts that, as 
of the expiration of such period, have been borrowed under the 
authority of section 1309(a) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4016(a)) and not yet repaid as of such date.

SEC. 13. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1325. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    ``(a) Requirement To Participate.--In the case of the occurrence of 
a natural catastrophe that may have resulted in flood damage covered by 
insurance made available under the national flood insurance program and 
a loss covered by personal lines residential property insurance policy, 
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 natural catastrophe, the Director shall cause 
such representatives to participate in such State program, when claims 
under the national flood insurance program are involved, to expedite 
settlement of flood damage claims resulting from such catastrophe.
    ``(b) Extent of Participation.--Participation by representatives of 
the Director required under subsection (a) with respect to flood damage 
claims resulting from a natural catastrophe shall include--
            ``(1) providing adjusters certified for purposes of the 
        national flood insurance program who are authorized to settle 
        claims against such program resulting from such catastrophe in 
        amounts up to the limits of policies under such program;
            ``(2) requiring such adjusters to attend State-sponsored 
        mediation meetings regarding flood insurance claims resulting 
        from such catastrophe at times and places as may be arranged by 
        the State;
            ``(3) participating in good-faith negotiations toward the 
        settlement of such claims with policyholders of coverage made 
        available under the national flood insurance program; and
            ``(4) finalizing the settlement of such claims on behalf of 
        the national flood insurance program with such policyholders.
    ``(c) Coordination.--Representatives of the Director who 
participate pursuant to this section in a State-sponsored mediation 
program with respect to a natural catastrophe shall at all times 
coordinate their activities with insurance officials of the State and 
representatives of insurers for the purpose of consolidating and 
expediting the settlement of claims under the national flood insurance 
program resulting from such catastrophe at the earliest possible time.
    ``(d) Mediation Proceedings and Privileged Documents.--As a 
condition of the participation of Representatives of the Director 
pursuant to this section in State-sponsored mediation, all statements 
made and documents produced pursuant to such mediation involving 
representatives of the Director shall be deemed privileged and 
confidential settlement negotiations made in anticipation of 
litigation.
    ``(e) Effect of Participation on Liability, Right, and 
Obligations.--Participation of Representatives of the Director pursuant 
to this section in State-sponsored mediation shall not affect or expand 
the liability of any party in contract or in tort, nor shall it affect 
the rights or obligations of the parties as provided in the Standard 
Flood Insurance Policy under the national flood insurance program, 
regulations of the Federal Emergency Management Agency, this Act, or 
Federal common law.
    ``(f) Exclusive Federal Jurisdiction.--Participation of 
Representatives of the Director pursuant to this section in State-
sponsored mediation shall not alter, change or modify the original 
exclusive jurisdiction of United States courts as provided in this Act.
    ``(g) Cost Limitation.--Nothing in this section shall be construed 
to require the Director or representatives of the Director to pay 
additional mediation fees relating to flood claims associated with a 
State-sponsored mediation program in which representatives of the 
Director participate.
    ``(h) Exception.--In the case of the occurrence of a natural 
catastrophe that results in flood damage claims under the national 
flood insurance program and does not result in any loss covered by a 
personal lines residential property insurance policy--
            ``(1) this section shall not apply; and
            ``(2) the provisions of the Standard Flood Insurance Policy 
        under the national flood insurance program and the appeals 
        process established pursuant to section 205 of the Bunning-
        Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
        Law 108-264; 118 Stat. 726) and regulations issued pursuant to 
        such section shall apply exclusively.
    ``(i) Representatives of Director.--For purposes of this section, 
the term `representatives of the Director' means representatives of the 
national flood insurance program who participate in the appeals process 
established pursuant to section 205 of the Bunning-Bereuter-Blumenauer 
Flood Insurance Reform Act of 2004 (Public Law 108-264; 118 Stat. 726) 
and regulations issued pursuant to such section.''.

SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
            (1) and inserting in the section heading, by striking 
        ``annual report to congress'';
            (2) in subsection (a)--
                    (A) by striking ``biennially'';
                    (B) by striking ``the President for submission 
                to''; and
                    (C) by inserting ``not later than June 30 of each 
                year'' before the period at the end;
            (3) in subsection (b), by striking ``biennial'' and 
        inserting ``annual''; and
            (4) by adding at the end the following new subsection:
    ``(c) Financial Status of Program.--The report under this section 
for each year shall include information regarding the financial status 
of the national flood insurance program under this title, including a 
description of the financial status of the National Flood Insurance 
Fund and current and projected levels of claims, premium receipts, 
expenses, and borrowing under the program.''.

SEC. 15. FLOOD INSURANCE OUTREACH.

    (a) Grants.--Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.

    ``(a) In General.--The Director may, to the extent amounts are made 
available pursuant to subsection (h), make grants to local governmental 
agencies responsible for floodplain management activities (including 
such agencies of Indians tribes, as such term is defined in section 4 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4103)) in communities that participate in the national 
flood insurance program under this title, for use by such agencies to 
carry out outreach activities to encourage and facilitate the purchase 
of flood insurance protection under this Act by owners and renters of 
properties in such communities and to promote educational activities 
that increase awareness of flood risk reduction.
    ``(b) Outreach Activities.--Amounts from a grant under this section 
shall be used only for activities designed to--
            ``(1) identify owners and renters of properties in 
        communities that participate in the national flood insurance 
        program, including owners of residential and commercial 
        properties;
            ``(2) notify such owners and renters when their properties 
        become included in, or when they are excluded from, an area 
        having special flood hazards and the effect of such inclusion 
        or exclusion on the applicability of the mandatory flood 
        insurance purchase requirement under section 102 of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
        properties;
            ``(3) educate such owners and renters 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;
            ``(4) educate such owners and renters regarding the 
        benefits and costs of maintaining or acquiring flood insurance, 
        including, where applicable, lower-cost preferred risk policies 
        under this title for such properties and the contents of such 
        properties; and
            ``(5) encouraging such owners and renters to maintain or 
        acquire such coverage.
    ``(c) Cost Sharing Requirement.--
            ``(1) In general.--In any fiscal year, the Director may not 
        provide a grant under this section to a local governmental 
        agency in an amount exceeding 3 times the amount that the 
        agency certifies, as the Director shall require, that the 
        agency will contribute from non-Federal funds to be used with 
        grant amounts only for carrying out activities described in 
        subsection (b).
            ``(2) Non-federal funds.--For purposes of this subsection, 
        the term `non-Federal funds' includes State or local government 
        agency amounts, in-kind contributions, any salary paid to staff 
        to carry out the eligible activities of the grant recipient, 
        the value of the time and services contributed by volunteers to 
        carry out such services (at a rate determined by the Director), 
        and the value of any donated material or building and the value 
        of any lease on a building.
    ``(d) Administrative Cost Limitation.--Notwithstanding subsection 
(b), the Director may use not more than 5 percent of amounts made 
available under subsection (g) to cover salaries, expenses, and other 
administrative costs incurred by the Director in making grants and 
provide assistance under this section.
    ``(e) Application and Selection.--
            ``(1) In general.--The Director shall provide for local 
        governmental agencies described in subsection (a) to submit 
        applications for grants under this section and for competitive 
        selection, based on criteria established by the Director, of 
        agencies submitting such applications to receive such grants.
            ``(2) Selection considerations.--In selecting applications 
        of local government agencies to receive grants under paragraph 
        (1), the Director shall consider--
                    ``(A) the existence of a cooperative technical 
                partner agreement between the local governmental agency 
                and the Federal Emergency Management Agency;
                    ``(B) the history of flood losses in the relevant 
                area that have occurred to properties, both inside and 
                outside the special flood hazards zones, which are not 
                covered by flood insurance coverage;
                    ``(C) the estimated percentage of high-risk 
                properties located in the relevant area that are not 
                covered by flood insurance;
                    ``(D) demonstrated success of the local 
                governmental agency in generating voluntary purchase of 
                flood insurance; and
                    ``(E) demonstrated technical capacity of the local 
                governmental agency for outreach to individual property 
                owners.
    ``(f) Direct Outreach by FEMA.--In each fiscal year that amounts 
for grants are made available pursuant to subsection (h), the Director 
may use not more than 50 percent of such amounts to carry out, and to 
enter into contracts with other entities to carry out, activities 
described in subsection (b) in areas that the Director determines have 
the most immediate need for such activities.
    ``(g) Reporting.--Each local government agency that receives a 
grant under this section, and each entity that receives amounts 
pursuant to subsection (f), shall submit a report to the Director, not 
later than 12 months after such amounts are first received, which shall 
include such information as the Director considers appropriate to 
describe the activities conducted using such amounts and the effect of 
such activities on the retention or acquisition of flood insurance 
coverage.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $50,000,000 for each of 
fiscal years 2008 through 2012.''.
    (b) Report on Current Efforts.--Not later than the expiration of 
the 60-day period beginning on the date of the enactment of this Act, 
the Director of the Federal Emergency Management Agency shall submit a 
report to the Congress identifying and describing the marketing and 
outreach efforts then currently being undertaken to educate consumers 
regarding the benefits of obtaining coverage under the national flood 
insurance program.

SEC. 16. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR 
              INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.

    (a) Direct Grants to Owners.--Section 1323 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4030) is amended--
            (1) in the section heading, by inserting ``direct'' before 
        ``grants''; and
            (2) in the matter in subsection (a) that precedes paragraph 
        (1)--
                    (A) by inserting ``, to owners of such 
                properties,'' before ``for mitigation actions''; and
                    (B) by striking ``1'' and inserting ``two''.
    (b) Availability of Funds.--Paragraph (9) of section 1310(a) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended by 
inserting ``which shall remain available until expended,'' after ``any 
fiscal year,''.

SEC. 17. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE 
              LOSS PROPERTIES.

    Section 1361A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4102a) is amended--
            (1) in subsection (k)(1), by striking ``2005, 2006, 2007, 
        2008, and 2009'' and inserting ``2008, 2009, 2010, 2011, and 
        2012''; and
            (2) by striking subsection (l).

SEC. 18. FLOOD MITIGATION ASSISTANCE PROGRAM.

    (a) Eligibility of Property Demolition and Rebuilding.--Section 
1366(e)(5)(B) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c(e)(5)(B)) is amended by striking ``or floodproofing'' and 
inserting ``floodproofing, or demolition and rebuilding''.
    (b) Elimination of Limitations on Aggregate Amount of Assistance.--
Section 1366 of the National Flood Insurance Act of 1968 is amended by 
striking subsection (f).
    (c) Source of Funds.--Subsection (a) of section 1367 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104d(a)) is amended by 
adding at the end the following new sentence: ``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.''.
    (d) Technical Amendments.--Section 1366 of the National Flood 
Insurance Act of 1968 is amended--
            (1) by striking ``subsection (g)'' each place such term 
        appears in subsections (h) and (i)(2) and inserting 
        ``subsection (f)'';
            (2) by redesignating subsections (g) through (k) as 
        subsections (f) through (j), respectively; and
            (3) by redesignating subsection (m) as subsection (k).

SEC. 19. GAO STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM 
              PARTICIPATION BY LOW-INCOME FAMILIES.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to identify and analyze potential methods, practices, 
and incentives that would increase the extent to which low-income 
families (as such term is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b))) that own residential 
properties located within areas having special flood hazards purchase 
flood insurance coverage for such properties under the national flood 
insurance program. In conducting the study, the Comptroller General 
shall analyze the effectiveness and costs of the various methods, 
practices, and incentives identified, including their effects on the 
national flood insurance program.
    (b) Report.--The Comptroller General shall submit to the Congress a 
report setting forth the conclusions of the study under this section 
not later than 12 months after the date of the enactment of this Act.

SEC. 20. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA 
              GOOD FAITH ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
end the following new sentence: ``Each such good faith estimate shall 
include the following conspicuous statements and information: (1) that 
flood insurance coverage for residential real estate is generally 
available under the national flood insurance program whether or not the 
real estate is located in an area having special flood hazards and 
that, to obtain such coverage, a home owner or purchaser should contact 
the national flood insurance program; (2) a telephone number and a 
location on the World Wide Web by which a home owner or purchaser can 
contact the national flood insurance program; and (3) that the 
escrowing of flood insurance payments is required for many loans under 
section 102(d) of the Flood Disaster Protection Act of 1973, and may be 
a convenient and available option with respect to other loans.''.

SEC. 21. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.

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

SEC. 22. ONGOING MODERNIZATION OF FLOOD MAPS AND ELEVATION STANDARDS.

    (a) Ongoing Flood Mapping Program.--Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at 
the end the following new subsection:
    ``(k) Ongoing Program To Review, Update, and Maintain Flood 
Insurance Program Maps.--
            ``(1) In general.--The Director, in coordination with the 
        Technical Mapping Advisory Council established pursuant to 
        section 576 of the National Flood Insurance Reform Act of 1994 
        (42 U.S.C. 4101 note) and section 22(b) of the Flood Insurance 
        Reform and Modernization Act of 2007, shall establish an 
        ongoing program under which the Director shall review, update, 
        and maintain national flood insurance program rate maps in 
        accordance with this subsection.
            ``(2) Inclusions.--
                    ``(A) Covered areas.--Each map updated under this 
                subsection shall include a depiction of--
                            ``(i) the 500-year floodplain;
                            ``(ii) areas that could be inundated as a 
                        result of the failure of a levee, as determined 
                        by the Director;
                            ``(iii) areas that could be inundated as a 
                        result of the failure of a dam, as identified 
                        under the National Dam Safety Program Act (33 
                        U.S.C. 467 et seq.); and
                            ``(iv) the 100-year floodplain, including 
                        any area that would be in the 100-year 
                        floodplain if not protected by a levee, dam, or 
                        other man-made structure.
                    ``(B) Other inclusions.--In updating maps under 
                this subsection, the Director may include--
                            ``(i) any relevant information on coastal 
                        inundation from--
                                    ``(I) an applicable inundation map 
                                of the Corps of Engineers; and
                                    ``(II) data of the National Oceanic 
                                and Atmospheric Administration relating 
                                to storm surge modeling;
                            ``(ii) any relevant information of the 
                        Geographical Service on stream flows, watershed 
                        characteristics, and topography that is useful 
                        in the identification of flood hazard areas, as 
                        determined by the Director; and
                            ``(iii) a description of any hazard that 
                        might impact flooding, including, as determined 
                        by the Director--
                                    ``(I) land subsidence and coastal 
                                erosion areas;
                                    ``(II) sediment flow areas;
                                    ``(III) mud flow areas;
                                    ``(IV) ice jam areas; and
                                    ``(V) areas on coasts and inland 
                                that are subject to the failure of 
                                structural protective works, such as 
                                levees, dams, and floodwalls.
                    ``(C) Effects of global warming.--In updating and 
                maintaining maps under this section, the Director 
                shall--
                            ``(i) take into consideration and account 
                        for the impacts of global climate change on 
                        flood, storm, and drought risks in the United 
                        States;
                            ``(ii) take into consideration and account 
                        for the potential future impact of global 
                        climate change-related weather events, such as 
                        increased hurricane activity, intensity, storm 
                        surge, sea level rise, and associated flooding; 
                        and
                            ``(iii) use the best available climate 
                        science in assessing flood and storm risks to 
                        determine flood risks and develop such maps.
            ``(3) Standards.--In updating and maintaining maps under 
        this subsection, the Director shall establish standards to--
                    ``(A) ensure that maps are adequate for--
                            ``(i) flood risk determinations; and
                            ``(ii) use by State and local governments 
                        in managing development to reduce the risk of 
                        flooding;
                    ``(B) facilitate the Director, in conjunction with 
                State and local governments, to identify and use 
                consistent methods of data collection and analysis in 
                developing maps for communities with similar flood 
                risks, as determined by the Director; and
                    ``(C) ensure that emerging weather forecasting 
                technology is used, where practicable, in flood map 
                evaluations and the identification of potential risk 
                areas.
            ``(4) Mapping elements.--Each map updated under this 
        section shall meet the following requirements:
                    ``(A) Ground elevation data.--The maps shall assess 
                the accuracy of current ground elevation data used for 
                hydrologic and hydraulic modeling of flooding sources 
                and mapping of the flood hazard and wherever necessary 
                acquire new ground elevation data utilizing the most 
                up-to-date geospatial technologies in accordance with 
                the existing guidelines and specifications of the 
                Federal Emergency Management Agency.
                    ``(B) Data on a watershed basis.--The maps shall 
                develop national flood insurance program flood data on 
                a watershed basis--
                            ``(i) to provide the most technically 
                        effective and efficient studies and hydrologic 
                        and hydraulic modeling; and
                            ``(ii) to eliminate, to the maximum extent 
                        possible, discrepancies in base flood 
                        elevations between adjacent political 
                        subdivisions.
                    ``(C) Other data.--The maps shall include any other 
                relevant information as may be recommended by the 
                Technical Mapping Advisory Council reestablished by 
                section 22(b) of the Flood Insurance Reform and 
                Modernization Act of 2007.
            ``(5) Hurricanes katrina and rita mapping priority.--In 
        updating and maintaining maps under this subsection, the 
        Director shall--
                    ``(A) give priority to the updating and maintenance 
                of maps of coastal areas affected by Hurricane Katrina 
                or Hurricane Rita to provide guidance with respect to 
                hurricane recovery efforts; and
                    ``(B) use the process of updating and maintaining 
                maps under subparagraph (A) as a model for updating and 
                maintaining other maps.
            ``(6) Preventing delay of 100-year maps.--In carrying out 
        this section and this subsection, the Director shall take such 
        actions as may be necessary to ensure that updating and 
        publication of national flood insurance program rate maps to 
        include a depiction of the 500-year floodplain does not in any 
        manner delay the completion or publication of the program rate 
        maps for the 100-year floodplain.
            ``(7) Education program.--The Director shall, after each 
        update to a flood insurance program rate map, in consultation 
        with the chief executive officer of each community affected by 
        the update, conduct a program to educate each such community 
        about the update to the flood insurance program rate map and 
        the effects of the update.
            ``(8) Annual report.--Not later than June 30 of each year, 
        the Director shall submit a report to the Congress describing, 
        for the preceding 12-month period, the activities of the 
        Director under the program under this section and the reviews 
        and updates of flood insurance program rate maps conducted 
        under the program. Each such annual report shall contain the 
        most recent report of the Technical Mapping Advisory Council 
        pursuant to section 576(c)(3) of the National Flood Insurance 
        Reform Act of 1994 (42 U.S.C. 4101 note).
            ``(9) Use of maps for rates.--The Director shall not adjust 
        the chargeable premium rate for flood insurance under this 
        title based on an updated national flood insurance program rate 
        map or require the purchase of flood insurance for a property 
        not subject to such a requirement of purchase prior to the 
        updating of such national flood insurance program rate map 
        until an updated national flood insurance program rate map is 
        completed for the entire district of the Corps of Engineers 
        affected by the map, as determined by the district engineer for 
        such district.
            ``(10) Authorization of appropriations.--There is 
        authorized to be appropriated to the Director to carry out this 
        subsection $400,000,000 for each of fiscal years 2008 through 
        2013.''.
    (b) Reestablishment of Technical Mapping Advisory Council for 
Ongoing Mapping Program.--
            (1) Reestablishment.--There is reestablished the Technical 
        Mapping Advisory Council, in accordance with this subsection 
        and section 576 of the National Flood Insurance Reform Act of 
        1994 (42 U.S.C. 4101 note).
            (2) Membership.--Paragraph (1) of section 576(b) of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``10'' and inserting ``15'';
                    (B) by redesignating subparagraphs (E), (F), (G), 
                (H), (I), and (J) as subparagraphs (F), (G), (H), (K), 
                (O), and (P), respectively;
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) a representative of the Corps of Engineers of 
                the United States Army;'';
                    (D) by inserting after subparagraph (H) (as so 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraphs:
                    ``(I) a representative of local or regional flood 
                and stormwater agencies;
                    ``(J) a representative of State geographic 
                information coordinators;''; and
                    (E) by inserting after subparagraph (K) (as so 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraphs:
                    ``(L) a representative of flood insurance servicing 
                companies;
                    ``(M) a real estate professional;
                    ``(N) a member of a professional mapping 
                association or organization;''.
            (3) Terms of members and appointment.--Section 576(b) of 
        the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended by adding at the end the following new 
        paragraph:
            ``(3) Terms of members.--
                    ``(A) In general.--Each member of the Council 
                pursuant to any of subparagraphs (B) through (N) of 
                paragraph (1) shall be appointed for a term of 5 years, 
                except as provided in subparagraphs (B) and (C).
                    ``(B) Terms of initial appointees.--As designated 
                by the Director (or the designee of the Director) at 
                the time of appointment, of the members of the Council 
                first appointed pursuant to subparagraph (D)--
                            ``(i) 4 shall be appointed for a term of 1 
                        year;
                            ``(ii) 4 shall be appointed for a term of 3 
                        years; and
                            ``(iii) 5 shall be appointed for a term of 
                        5 years.
                    ``(C) Vacancies.--Any member of the Council 
                appointed to fill a vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term. A member may serve after 
                the expiration of that member's term until a successor 
                has taken office. A vacancy in the Council shall be 
                filled in the manner in which the original appointment 
                was made.
                    ``(D) Initial appointment.--The Director, or the 
                Director's designee, shall take action as soon as 
                possible after the date of the enactment of the Flood 
                Insurance Reform and Modernization Act of 2007 to 
                appoint the members of the Council pursuant to this 
                subsection.''.
            (4) Duties.--Subsection (c) of section 576 of the National 
        Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is 
        amended to read as follows:
    ``(c) Duties.--The Council shall--
            ``(1) make recommendations to the Director for improvements 
        to the flood map modernization program under section 1360(k) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 41010(k));
            ``(2) make recommendations to the Director for maintaining 
        a modernized inventory of flood hazard maps and information; 
        and
            ``(3) submit an annual report to the Director that contains 
        a description of the activities and recommendations of the 
        Council.''.
            (5) Elimination of termination.--Section 576 of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended by striking subsection (k) and inserting the 
        following new subsection:
    ``(k) Continued Existence.--Section 14(a)(2)(B) of the Federal 
Advisory Committee Act (5 U.S.C. App.; relating to termination of 
advisory committees) shall not apply to the Council.''.
    (c) Post-Disaster Flood Elevation Determinations.--Section 1360 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as amended 
by the preceding provisions of this Act, is further amended by adding 
at the end the following new subsection:
    ``(l) Interim Post-Disaster Flood Elevations.--
            ``(1) Authority.--Notwithstanding any other provision of 
        this section or section 1363, the Director may, after any 
        flood-related disaster, establish by order interim flood 
        elevation requirements for purposes of the national flood 
        insurance program for any areas affected by such flood-related 
        disaster.
            ``(2) Effectiveness.--Such interim elevation requirements 
        for such an area shall take effect immediately upon issuance 
        and may remain in effect until the Director establishes new 
        flood elevations for such area in accordance with section 1363 
        or the Director provides otherwise.''.
    (d) Updating Upon Request of Community.--Paragraph (2) of section 
1360(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(f)(2)) is amended by inserting before the period at the end the 
following: ``, except that such a revision or update shall be made at 
no cost to the unit of government making the request if the request is 
being made to reflect repairs and upgrades to dams, levees, or other 
flood control projects under the jurisdiction and responsibility of the 
Federal Government''.
    (e) 5-Year Discount of Flood Insurance Rates for Formerly Protected 
Areas.--Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this Act, is 
further amended--
            (1) in subsection (c), by inserting ``and subsection (g)'' 
        before the first comma; and
            (2) by adding at the end the following new subsection:
    ``(g) 5-Year Discount of Flood Insurance Rates for Formerly 
Protected Areas.--Notwithstanding any other provision of law relating 
to chargeable risk premium rates for flood insurance coverage under 
this title, in the case of any area that previously was not designated 
as an area having special flood hazards because the area was protected 
by a flood protection system and that, pursuant to remapping under 
section 1360(k), becomes designated as such an area as a result of the 
decertification of such flood protection system, during the 5-year 
period that begins upon the initial such designation of the area, the 
chargeable premium rate for flood insurance under this title with 
respect to any property that is located within such area shall be equal 
to 50 percent of the chargeable risk premium rate otherwise applicable 
under this title to the property.''.
    (f) Phase-in of Flood Insurance Premiums for Low-Cost Properties.--
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by the preceding provisions of this Act, is further 
amended--
            (1) in subsection (c), by inserting ``and subsection (h)'' 
        before the first comma; and
            (2) by adding at the end the following new subsection:
    ``(h) 5-Year Phase-in of Premiums for Newly Covered Low-Cost 
Properties.--
            ``(1) In general.--In the case of any area not previously 
        designated as an area having special flood hazards that becomes 
        designated as such an area as a result of remapping pursuant to 
        section 1360(k), during the 5-year period that begins upon the 
        initial such designation of the area, the chargeable premium 
        rate for flood insurance under this title with respect to any 
        low-cost property that is located within such area shall be--
                    ``(A) for the first year of such 5-year period, 20 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(B) for the second year of such 5-year period, 40 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(C) for the third year of such 5-year period, 60 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(D) for the fourth year of such 5-year period, 80 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property; and
                    ``(E) for the fifth year of such 5-year period, 100 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property.
            ``(2) Low-cost property.--For purposes of this subsection, 
        the term `low-cost property' means a single-family dwelling, or 
        a dwelling unit in a residential structure containing more than 
        one dwelling unit, that--
                    ``(A) is the principal residence of the owner or 
                renter occupying the dwelling or unit; and
                    ``(B) has a value, at the time of the initial 
                designation of the area having special flood hazards, 
                that does not exceed 75 percent of median home value 
                for the State in which the property is located.''.

SEC. 23. NOTIFICATION AND APPEAL OF MAP CHANGES; NOTIFICATION OF 
              ESTABLISHMENT OF FLOOD ELEVATIONS.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended by striking the section designation and all that 
follows through the end of subsection (a) and inserting the following:
    ``Sec. 1363. (a) In establishing projected flood elevations for 
land use purposes with respect to any community pursuant to section 
1361, the Director shall first propose such determinations--
            ``(1) by providing the chief executive officer of each 
        community affected by the proposed elevations, by certified 
        mail, with a return receipt requested, notice of the 
        elevations, including a copy of the maps for the elevations for 
        such community and a statement explaining the process under 
        this section to appeal for changes in such elevations;
            ``(2) by causing notice of such elevations to be published 
        in the Federal Register, which notice shall include information 
        sufficient to identify the elevation determinations and the 
        communities affected, information explaining how to obtain 
        copies of the elevations, and a statement explaining the 
        process under this section to appeal for changes in the 
        elevations;
            ``(3) by publishing in a prominent local newspaper the 
        elevations, a description of the appeals process for flood 
        determinations, and the mailing address and telephone number of 
        a person the owner may contact for more information or to 
        initiate an appeal; and
            ``(4) by providing written notification, by first class 
        mail, to each owner of real property affected by the proposed 
        elevations of--
                    ``(A) the status of such property, both prior to 
                and after the effective date of the proposed 
                determination, with respect to flood zone and flood 
                insurance requirements under this Act and the Flood 
                Disaster Protection Act of 1973;
                    ``(B) the process under this section to appeal a 
                flood elevation determination; and
                    ``(C) the mailing address and phone number of a 
                person the owner may contact for more information or to 
                initiate an appeal.''.

SEC. 24. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND 
              POLICY LANGUAGE.

    Not later than the expiration of the 3-month period beginning on 
the date of the enactment of this Act, the Director of the Federal 
Emergency Management Agency shall--
            (1) in plain language using easy to understand terms and 
        concepts, issue regulations, and revise any materials made 
        available by such Agency, to clarify the applicability of 
        replacement cost coverage under the national flood insurance 
        program;
            (2) in plain language using easy to understand terms and 
        concepts, revise any regulations, forms, notices, guidance, and 
        publications relating to the full cost of repair or replacement 
        under the replacement cost coverage to more clearly describe 
        such coverage to flood insurance policyholders and information 
        to be provided by such policyholders relating to such coverage, 
        and to avoid providing misleading information to such 
        policyholders;
            (3) revise the language in standard flood insurance 
        policies under such program regarding rating and coverage 
        descriptions in a manner that is consistent with language used 
        widely in other homeowners and property and casualty insurance 
        policies, including such language regarding classification of 
        buildings, basements, crawl spaces, detached garages, 
        enclosures below elevated buildings, and replacement costs; and
            (4) require the use, in connection with flood insurance 
        policies, of the supplemental forms developed pursuant to 
        section 202 of the Bunning-Bereuter-Blumenauer Flood Insurance 
        Reform Act of 2004 (Public Law 108-264; 118 Stat. 725).

SEC. 25. AUTHORIZATION OF ADDITIONAL FEMA STAFF.

    Notwithstanding any other provision of law, the Director of the 
Federal Emergency Management Agency may employ such additional staff as 
may be necessary to carry out all of the responsibilities of the 
Director pursuant to this Act and the amendments made by this Act. 
There are authorized to be appropriated to Director such sums as may be 
necessary for costs of employing such additional staff.

SEC. 26. EXTENSION OF DEADLINE FOR FILING PROOF OF LOSS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019) is amended--
            (1) by inserting ``(a) Payment.--'' before ``The 
        Director''; and
            (2) by adding at the end the following new subsection:
    ``(b) Filing Deadline for Proof of Loss.--
            ``(1) In general.--In establishing any requirements 
        regarding notification, proof, or approval of claims for damage 
        to or loss of property which is covered by flood insurance made 
        available under this title, the Director may not require an 
        insured to notify the Director of such damage or loss, submit a 
        claim for such damage or loss, or certify to or submit proof of 
        such damage or loss, before the expiration of the 180-day 
        period that begins on the date that such damage or loss 
        occurred.
            ``(2) Exceptions.--Notwithstanding any deadline established 
        in accordance with paragraph (1), the Director may not deny a 
        claim for damage or loss described in such paragraph solely for 
        failure to meet such deadline if the insured demonstrates any 
        good cause for such failure.''.
    (b) Applicability.--Subsection (b) of section 1312 of the National 
Flood Insurance Act of 1968, as added by subsection (a)(2) of this 
section, shall apply with respect to any claim under which the damage 
to or loss of property occurred on or after the date of the enactment 
of this Act.

SEC. 27. 5-YEAR EXTENSION OF PROGRAM.

    Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4026) is amended by striking ``September 30, 2008'' and inserting 
``September 30, 2013''.

SEC. 28. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN MANAGEMENT 
              CRITERIA.

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

SEC. 29. STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY-BASED 
              PREMIUM RATES FOR PRE-FIRM STRUCTURES.

    (a) Study.--The Director of the Federal Emergency Management Agency 
(in this section referred to as the ``Director'') shall conduct a study 
of the economic effects that would result from increasing premium rates 
for flood insurance coverage made available under the national flood 
insurance program for non-primary residences and non-residential pre-
FIRM structures (as such term is defined in section 578(b) of the 
National Flood Insurance Reform Act of 1994 (42 U.S.C. 4014 note) to 
the full actuarial risk based premium rate determined under section 
1307(a)(1) of the National Flood Insurance Act of 1968 for the area in 
which the property is located. In conducting the study, the Director 
shall--
            (1) determine each area that would be subject to such 
        increased premium rates; and
            (2) for each such area, determine--
                    (A) the amount by which premium rates would be 
                increased;
                    (B) the number and types of properties affected and 
                the number and types of properties covered by flood 
                insurance under this title likely to cancel such 
                insurance if the rate increases were made;
                    (C) the effects that the increased premium rates 
                would have on land values and property taxes; and
                    (D) any other effects that the increased premium 
                rates would have on the economy, homeowners, and 
                renters of non-primary residences.
    (b) Report.--The Director shall submit a report to the Congress 
describing and explaining the findings of the study conducted under 
this section. The report shall be submitted not later than 12 months 
after the date of the enactment of this Act.

SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY ASSESSED ON CONDOMINIUM 
              ASSOCIATIONS.

    Notwithstanding any other provision of law, the Director of the 
Federal Emergency Management Agency shall not apply or enforce any 
penalty relating to the national flood insurance program assessed, 
during 2005 or thereafter, on condominium associations that are 
underinsured under such program.

SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF WRITE-YOUR-OWN INSURERS; 
              INDEPENDENT AUDITS.

    Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4084) is amended by adding at the end the following new subsections:
    ``(c) Any insurance company or other private organization executing 
any contract, agreement, or other appropriate arrangement with the 
Director under this part shall--
            ``(1) annually submit to the Director a record of all 
        administrative and operating costs of the program undertaken; 
        and
            ``(2) biennially submit to the Director an independent 
        audit of the program undertaken that is conducted by a 
        certified public accountant to ensure that payments made are 
        proper and in accordance with this Act.
    ``(d) The Director shall review the records and audits submitted 
under paragraphs (1) and (2) of subsection (c) to determine if such 
payments are reasonable and if the system by which the Director makes 
payments to an insurance company or other private organization under 
this part should be revised.''.

SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON MISSISSIPPI 
              AND LOUISIANA PROPERTIES RECEIVING EMERGENCY SUPPLEMENTAL 
              FUNDS.

    The Director of the Federal Emergency Management Agency shall 
develop and implement a plan to verify that persons receiving funds 
under the Homeowner Grant Assistance Program of the State of 
Mississippi or the Road Home Program of the State of Louisiana from 
amounts allocated to the State of Mississippi or the State of 
Louisiana, respectively, from the Community development fund under the 
Emergency Supplemental Appropriations Act to Address Hurricanes in the 
Gulf of Mexico and Pandemic Influenza, 2006 (Public Law 109-148) are 
maintaining flood insurance on the property for which such persons 
receive such funds as required by each such Program.

SEC. 33. GAO STUDY OF FACTORS AFFECTING ENROLLMENT IN MULTIPERIL 
              INSURANCE PROGRAM.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to identify and analyze factors affecting enrollment in 
the multiperil insurance program. Such study shall include a study of 
the effects of the multiperil insurance program on enrollment and 
pricing of State residual property and casualty markets or plans and 
State catastrophe plans.
    (b) Report.--Not later than 270 days after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report containing the conclusions of the study conducted under 
subsection (a).

SEC. 34. NATIONAL FLOOD INSURANCE ADVOCATE; REPORTS.

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

``SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE.

    ``(a) Establishment of Position.--
            ``(1) In general.--There shall be in the Federal Emergency 
        Management Agency a National Flood Insurance Advocate. The 
        National Flood Insurance Advocate shall report directly to the 
        Director and shall, to the extent amounts are provided pursuant 
        to subsection (c), be compensated at the same rate as the 
        highest rate of basic pay established for the Senior Executive 
        Service under section 5382 of title 5, United States Code, or, 
        if the Director so determines, at a rate fixed under section 
        9503 of such title.
            ``(2) Appointment.--The National Flood Insurance Advocate 
        shall be appointed by the Director and the flood insurance 
        advisory committee established pursuant to section 1318 (42 
        U.S.C. 4025) and without regard to the provisions of title 5, 
        United States Code, relating to appointments in the competitive 
        service or the Senior Executive Service.
            ``(3) Qualifications.--An individual appointed under 
        paragraph (2) shall have--
                    ``(A) a background in customer service as well as 
                insurance; and
                    ``(B) experience in representing individual 
                insureds.
            ``(4) Restriction on employment.--An individual may be 
        appointed as the National Flood Insurance Advocate only if such 
        individual was not an officer or employee of the Federal 
        Emergency Management Agency with duties relating to the 
        national flood insurance program during the 2-year period 
        ending with such appointment and such individual agrees not to 
        accept any employment with the Federal Emergency Management 
        Agency for at least 5 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.
            ``(5) Staff.--To the extent amounts are provided pursuant 
        to subsection (c), the National Flood Insurance Advocate may 
        employ such personnel as may be necessary to carry out the 
        duties of the Advocate.
    ``(b) Duties.--The duties of the National Flood Insurance Advocate 
shall be to conduct studies with respect to, and submit, the following 
reports:
            ``(1) Report on problems of insureds under national flood 
        insurance program.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of the 
        Flood Insurance Reform and Modernization Act of 2007, the 
        National Flood Insurance Advocate shall submit a report to the 
        Congress regarding the national flood insurance program, which 
        shall--
                    ``(A) identify areas in which insureds under such 
                program have problems in dealings with the Federal 
                Emergency Management Agency relating to such program, 
                and shall contain a summary of at least 20 of the most 
                serious problems encountered by such insureds, 
                including a description of the nature of such problems;
                    ``(B) identify areas of the law relating to the 
                flood insurance that impose significant compliance 
                burdens on such insureds or the Federal Emergency 
                Management Agency, including specific recommendations 
                for remedying such problems;
                    ``(C) identify the 10 most litigated issues for 
                each category of such insureds, including 
                recommendations for mitigating such disputes;
                    ``(D) identify the initiatives of the Agency to 
                improve services for insureds under the national flood 
                insurance program and actions taken by the Agency with 
                respect to such program;
                    ``(E) contain recommendations for such 
                administrative and legislative action as may be 
                appropriate to mitigate or resolve problems encountered 
                by such insureds; and
                    ``(F) include such other information as the 
                National Flood Insurance Advocate considers 
                appropriate.
            ``(2) Report on establishment of an office of the flood 
        insurance advocate.--Not later than the expiration of the 6-
        month period beginning on the date of the initial appointment 
        of a National Flood Insurance Advocate under this section, the 
        Advocate shall submit a report to the Congress regarding the 
        feasibility and effectiveness of establishing an Office of the 
        Flood Insurance Advocate, headed by the National Flood 
        Insurance Advocate, to assist insureds under the national flood 
        insurance program in resolving problems with the Federal 
        Emergency Management Agency relating to such program. Such 
        report shall examine and analyze, and include recommendations 
        regarding--
                    ``(A) an appropriate structure in which to 
                establish such an Office, and appropriate levels of 
                personnel for such Office;
                    ``(B) other appropriate functions for such an 
                Office, which may include--
                            ``(i) identifying areas in which such 
                        insureds have problems in dealing with the 
                        Agency relating to such program;
                            ``(ii) proposing changes in the 
                        administrative practices of the Agency to 
                        resolve or mitigate problems encountered by 
                        such insureds; and
                            ``(iii) identifying potential legislative 
                        changes which may be appropriate to resolve or 
                        mitigate such problems;
                    ``(C) appropriate procedures for formal response by 
                the Director to recommendations submitted to the 
                Director by the National Flood Insurance Advocate;
                    ``(D) the feasibility and effectiveness of 
                authorizing the National Flood Insurance Advocate to 
                issue flood insurance assistance orders in cases in 
                which the Advocate determines that a qualified insured 
                is suffering or about to suffer a significant hardship 
                as a result of the manner in which the flood insurance 
                laws are being administered or meets such other 
                requirements may be appropriate, including examining 
                and analyzing--
                            ``(i) appropriate limitations on the scope 
                        and effect of such orders;
                            ``(ii) an appropriate standard for 
                        determining such a significant hardship;
                            ``(iii) appropriate terms of flood 
                        insurance assistance orders; and
                            ``(iv) appropriate procedures for modifying 
                        or rescinding such orders;
                    ``(E) the feasibility and effectiveness of 
                establishing offices of flood insurance advocates who 
                report to the National Flood Insurance Advocate, 
                including examining and analyzing--
                            ``(i) the appropriate coverage and 
                        geographic allocation of such offices;
                            ``(ii) appropriate procedures and criteria 
                        for referral of inquiries by insureds under 
                        such program to such offices;
                            ``(iii) allowing such advocates to consult 
                        with appropriate supervisory personnel of the 
                        Agency regarding the daily operation of the 
                        offices; and
                            ``(iv) providing authority for such 
                        advocates not disclose to the Director contact 
                        with, or information provided by, such an 
                        insured;
                    ``(F) appropriate methods for developing career 
                paths for flood insurance advocates referred to in 
                subparagraph (E) who may choose to make a career in the 
                Office of the Flood Insurance Advocate; and
                    ``(G) such other issues regarding the establishment 
                of an Office of the Flood Insurance Advocate as the 
                National Flood Insurance Advocate considers 
                appropriate.
            ``(3) Direct submission of reports.--Each report required 
        under paragraph (2) shall be provided directly to the Congress 
        by the National Flood Insurance Advocate 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.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal year 2008 and each fiscal year thereafter such 
sums as may be necessary to carry out this section.''.

SEC. 35. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(d) Requirements for Write-Your-Own Insurers Relating to 
Windstorm and Flood.--The Director may not utilize the facilities or 
services of any insurance company or other insurer to offer flood 
insurance coverage under this title unless such company or insurer 
enters into a written agreement with the Director that provides as 
follows:
            ``(1) Prohibition on exclusion of wind damage coverage.--
        The agreement shall prohibit the company or insurer from 
        including, in any policy provided by the company or insurer for 
        homeowners' insurance coverage or coverage for damage from 
        windstorms, any provision that excludes coverage for wind or 
        other damage solely because flooding also contributed to damage 
        to the insured property.
            ``(2) Fiduciary responsibility.--The agreement shall 
        provide that the company or insurer--
                    ``(A) has a fiduciary duty with respect to the 
                Federal taxpayers;
                    ``(B) in selling and servicing policies for flood 
                insurance coverage under this title and adjusting 
                claims under such coverage, will act in the best 
                interests the national flood insurance program rather 
                than in the interests of the company or insurer; and
                    ``(C) will provide written guidance to each 
                insurance agent and claims adjuster for the company or 
                insurer setting forth the terms of the agreement 
                pursuant to subparagraphs (A) and (B).''.

SEC. 36. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED 
              AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED FLOOD 
              CONTROL STRUCTURE.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1361A (42 U.S.C. 4102a) the following new section:

``SEC. 1362. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED 
              AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED FLOOD 
              CONTROL STRUCTURE.

    ``(a) 100-Year Floodplain.--The Director may publish, through the 
publication of a national flood insurance program rate map, a note to 
designate areas protected against at least the 100-year flood by a 
certified flood control structure which shall read as follows: `NOTE: 
This area is shown as being protected from at least the 1-percent-
annual-chance flood hazard by levee, dike, or other structure. 
Overtopping or failure of any flood control structure is possible. 
Property owners are encouraged to evaluate their flood risk, based on 
full and accurate information, and to consider flood insurance coverage 
as appropriate.'.
    ``(b) 500-Year Floodplain.--The Director may publish, through the 
issuance of a national flood insurance program rate map, a note to 
designate areas protected against at least the 500-year flood by a 
certified flood control structure which shall read as follows: `NOTE: 
This area is shown as being protected from at least the 0.2-percent-
annual-chance flood hazard by levee, dike, or other structure. 
Overtopping or failure of any flood control structure is possible. 
Property owners are encouraged to evaluate their flood risk, based on 
full and accurate information, and to consider flood insurance coverage 
as appropriate.'.
    ``(c) Effect of Notes.--The publication of a note under subsection 
(a) or (b) shall not be considered a requirement of participation in 
the national flood insurance program.''.

            Passed the House of Representatives September 27, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.