[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2284 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 460
110th CONGRESS
  1st Session
                                S. 2284

                          [Report No. 110-214]

   To amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 2007

 Mr. Dodd, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
   To amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, 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; 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; Table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Extension of National Flood Insurance Program.
Sec. 5. Availability of insurance for multifamily properties.
Sec. 6. Reform of premium rate structure.
Sec. 7. Mandatory coverage areas.
Sec. 8. Premium adjustment.
Sec. 9. State chartered financial institutions.
Sec. 10. Enforcement.
Sec. 11. Escrow of flood insurance payments.
Sec. 12. Borrowing authority debt forgiveness.
Sec. 13. Minimum deductibles for claims under the National Flood 
                            Insurance Program.
Sec. 14. Considerations in determining chargeable premium rates.
Sec. 15. Reserve fund.
Sec. 16. Repayment plan for borrowing authority.
Sec. 17. Payment of condominium claims.
Sec. 18. Technical Mapping Advisory Council.
Sec. 19. National Flood Mapping Program.
Sec. 20. Removal of limitation on State contributions for updating 
                            flood maps.
Sec. 21. Coordination.
Sec. 22. Interagency coordination study.
Sec. 23. Nonmandatory participation.
Sec. 24. Notice of flood insurance availability under RESPA.
Sec. 25. Testing of new floodproofing technologies.
Sec. 26. Participation in State disaster claims mediation programs.
Sec. 27. Reiteration of FEMA responsibilities under the 2004 Reform 
                            Act.
Sec. 28. Additional authority of FEMA to collect information on claims 
                            payments.
Sec. 29. Expense reimbursements of insurance companies.
Sec. 30. Extension of pilot program for mitigation of severe repetitive 
                            loss properties.
Sec. 31. Flood insurance advocate.
Sec. 32. Studies and Reports.

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

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

SEC. 4. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

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

SEC. 5. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

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

SEC. 6. REFORM OF PREMIUM RATE STRUCTURE.

    (a) To Exclude Certain Properties From Receiving Subsidized Premium 
Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (2), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in paragraph (3), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(4) the exclusion of prospective insureds from purchasing 
        flood insurance at rates less than those estimated under 
        paragraph (1), as required by paragraph (2), for certain 
        properties, including for--
                    ``(A) any property which is not the primary 
                residence of an individual;
                    ``(B) any severe repetitive loss property, as 
                defined in section 1361A(b);
                    ``(C) any property that has incurred flood-related 
                damage in which the cumulative amounts of payments 
                under this title equaled or exceeded the fair market 
                value of such property;
                    ``(D) any business property; and
                    ``(E) any property which on or after the date of 
                enactment of the Flood Insurance Reform and 
                Modernization Act of 2007 has experienced or 
                sustained--
                            ``(i) substantial damage exceeding 50 
                        percent of the fair market value of such 
                        property; or
                            ``(ii) substantial improvement exceeding 30 
                        percent of the fair market value of such 
                        property.''; and
                    (B) by adding at the end the following:
    ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
The Director shall not provide flood insurance to prospective insureds 
at rates less than those estimated under subsection (a)(1), as required 
by paragraph (2) of that subsection, for--
            ``(1) any property not insured by the flood insurance 
        program as of the date of enactment of the Flood Insurance 
        Reform and Modernization Act of 2007; and
            ``(2) any policy under the flood insurance program that has 
        lapsed in coverage, as a result of the deliberate choice of the 
        holder of such policy.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall become effective 90 days after the date of the enactment 
        of this Act.
    (b) Increase in Annual Limitation on Premium Increases.--Section 
1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) 
is amended--
            (1) by striking ``under this title for any properties 
        within any single'' and inserting the following: ``under this 
        title for any properties--
            ``(1) within any single''; and
            (2) by striking ``10 percent'' and inserting ``15 
        percent''; and
            (3) by striking the period at the end and inserting the 
        following: ``; and
            ``(2) described in section 1307(a)(4) shall be increased by 
        25 percent each year, until the average risk premium rate for 
        such properties is equal to the average of the risk premium 
        rates for properties described under paragraph (1).''.

SEC. 7. MANDATORY COVERAGE AREAS.

    (a) Special Flood Hazard Areas.--Not later than 90 days after the 
date of enactment of this Act, the Director shall issue final 
regulations establishing a revised definition of areas of special flood 
hazards for purposes of the National Flood Insurance Program.
    (b) Residual Risk Areas.--The regulations required by subsection 
(a) shall--
            (1) include any area previously identified by the Director 
        as an area having special flood hazards under section 102 of 
        the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); 
        and
            (2) require the expansion of areas of special flood hazards 
        to include areas of residual risk, including areas that are 
        located behind levees, dams, and other man-made structures.
    (c) Mandatory Participation in National Flood Insurance Program.--
            (1) In general.--Any area described in subsection (b) shall 
        be subject to the mandatory purchase requirements of sections 
        102 and 202 of the Flood Disaster Protection Act of 1973 (42 
        U.S.C. 4012a, 4106).
            (2) Limitation.--The mandatory purchase requirement under 
        paragraph (1) shall have no force or effect until the mapping 
        of all residual risk areas in the United States that the 
        Director determines essential in order to administer the 
        National Flood Insurance Program, as required under section 19, 
        are in the maintenance phase.

SEC. 8. PREMIUM ADJUSTMENT.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by adding at the end the following:
    ``(g) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding subsection (f), and upon completion of the updating of 
any flood insurance rate map under this Act, the Flood Disaster 
Protection Act of 1973, or the Flood Insurance Reform and Modernization 
Act of 2007, any property located in an area that is participating in 
the national flood insurance program shall have the risk premium rate 
charged for flood insurance on such property adjusted to accurately 
reflect the current risk of flood to such property, subject to any 
other provision of this Act. Any increase in the risk premium rate 
charged for flood insurance on any property that is covered by a flood 
insurance policy on the date of completion of such updating or 
remapping that is a result of such updating or remapping shall be 
phased in over a 2-year period at the rate of 50 percent per year.''.

SEC. 9. STATE CHARTERED FINANCIAL INSTITUTIONS.

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

SEC. 10. ENFORCEMENT.

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

SEC. 11. ESCROW OF FLOOD INSURANCE PAYMENTS.

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

SEC. 12. BORROWING AUTHORITY DEBT FORGIVENESS.

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

SEC. 13. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL FLOOD 
              INSURANCE PROGRAM.

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

SEC. 14. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES.

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

SEC. 15. RESERVE FUND.

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

``SEC. 1310A. RESERVE FUND.

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

SEC. 16. REPAYMENT PLAN FOR BORROWING AUTHORITY.

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

SEC. 17. PAYMENT OF CONDOMINIUM CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 13, is further amended by adding at the 
end the following:
    ``(c) Payment of Claims to Condominium Owners.--The Director may 
not deny payment for any damage to or loss of property which is covered 
by flood insurance to condominium owners who purchased such flood 
insurance separate and apart from the flood insurance purchased by the 
condominium association in which such owner is a member, based, solely 
or in any part, on the flood insurance coverage of the condominium 
association or others on the overall property owned by the condominium 
association. Notwithstanding any regulations, rules, or restrictions 
established by the Director relating to appeals and filing deadlines, 
the Director shall ensure that the requirements of this subsection are 
met with respect to any claims for damages resulting from flooding in 
2005 and 2006.''.

SEC. 18. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of the Director, 
        or the designee thereof, and 12 additional members to be 
        appointed by the Director or the designee of the Director, who 
        shall be--
                    (A) the Under Secretary of Commerce for Oceans and 
                Atmosphere (or the designee thereof);
                    (B) a member of a recognized professional surveying 
                association or organization
                    (C) a member of a recognized professional mapping 
                association or organization;
                    (D) a member of a recognized professional 
                engineering association or organization;
                    (E) a member of a recognized professional 
                association or organization representing flood hazard 
                determination firms;
                    (F) a representative of the United States 
                Geological Survey;
                    (G) a representative of a recognized professional 
                association or organization representing State 
                geographic information;
                    (H) a representative of State national flood 
                insurance coordination offices;
                    (I) a representative of the Corps of Engineers;
                    (J) the Secretary of the Interior (or the designee 
                thereof);
                    (K) the Secretary of Agriculture (or the designee 
                thereof); and
                    (L) a member of a recognized regional flood and 
                storm water management organization.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps.
    (c) Duties.--The Council shall--
            (1) recommend to the Director how to improve in a cost-
        effective manner the--
                    (A) accuracy, general quality, ease of use, and 
                distribution and dissemination of flood insurance rate 
                maps and risk data; and
                    (B) performance metrics and milestones required to 
                effectively and efficiently map flood risk areas in the 
                United States;
            (2) recommend to the Director mapping standards and 
        guidelines for--
                    (A) flood insurance rate maps; and
                    (B)  data accuracy, data quality, data currency, 
                and data eligibility;
            (3) recommend to the Director how to maintain on an ongoing 
        basis flood insurance rate maps and flood risk identification;
            (4) recommend procedures for delegating mapping activities 
        to State and local mapping partners;
            (5) recommend to the Director and other Federal agencies 
        participating in the Council--
                    (A) methods for improving interagency and 
                intergovernmental coordination on flood mapping and 
                flood risk determination; and
                    (B) a funding strategy to leverage and coordinate 
                budgets and expenditures across Federal agencies; and
            (6) submit an annual report to the Director that contains--
                    (A) a description of the activities of the Council;
                    (B) an evaluation of the status and performance of 
                flood insurance rate maps and mapping activities to 
                revise and update flood insurance rate maps, as 
                required under section 19; and
                    (C) a summary of recommendations made by the 
                Council to the Director.
    (d) Future Conditions Risk Assessment and Modeling Report.--
            (1) In general.--The Council shall consult with scientists 
        and technical experts, other Federal agencies, States, and 
        local communities to--
                    (A) develop recommendations on how to--
                            (i) ensure that flood insurance rate maps 
                        incorporate the best available climate science 
                        to assess flood risks; and
                            (ii) ensure that the Federal Emergency 
                        Management Agency uses the best available 
                        methodology to consider the impact of--
                                    (I) the rise in the sea level; and
                                    (II) future development on flood 
                                risk; and
                    (B) not later than 1 year after the date of 
                enactment of this Act, prepare written recommendations 
                in a future conditions risk assessment and modeling 
                report and to submit such recommendations to the 
                Director.
            (2) Responsibility of the director.--The Director, as part 
        of the ongoing program to review and update National Flood 
        Insurance Program rate maps under section 19, shall incorporate 
        any future risk assessment submitted under paragraph (1)(B) in 
        any such revision or update.
    (e) Chairperson.--The members of the Council shall elect 1 member 
to serve as the chairperson of the Council (in this section referred to 
as the ``Chairperson'').
    (f) Coordination.--To ensure that the Council's recommendations are 
consistent, to the maximum extent practicable, with national digital 
spatial data collection and management standards, the Chairperson shall 
consult with the Chairperson of the Federal Geographic Data Committee 
(established pursuant to OMB Circular A-16).
    (g) Compensation.--Members of the Council shall receive no 
additional compensation by reason of their service on the Council.
    (h) Meetings and Actions.--
            (1) In general.--The Council shall meet not less frequently 
        than twice each year at the request of the Chairperson or a 
        majority of its members, and may take action by a vote of the 
        majority of the members.
            (2) Initial meeting.--The Director, or a person designated 
        by the Director, shall request and coordinate the initial 
        meeting of the Council.
    (i) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    (j) Staff.--
            (1) Staff of fema.--Upon the request of the Chairperson, 
        the Director may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the 
        Council in carrying out its duties.
            (2) Staff of other federal agencies.--Upon request of the 
        Chairperson, any other Federal agency that is a member of the 
        Council may detail, on a non-reimbursable basis, personnel to 
        assist the Council in carrying out its duties.
    (k) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as it considers appropriate.
    (l) Report to Congress.--The Director, on an annual basis, shall 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate, the Committee on Financial Services of the House of 
Representatives, and the Office of Management and Budget on the--
            (1) recommendations made by the Council; and
            (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve flood 
        insurance rate maps and flood risk data.

SEC. 19. NATIONAL FLOOD MAPPING PROGRAM.

    (a) Reviewing, Updating, and Maintaining Maps.--The Director, in 
coordination with the Technical Mapping Advisory Council established 
under section 18, shall establish an ongoing program under which the 
Director shall review, update, and maintain National Flood Insurance 
Program rate maps in accordance with this section.
    (b) Mapping.--
            (1) In general.--In carrying out the program established 
        under subsection (a), the Director shall--
                    (A) identify, review, update, maintain, and publish 
                National Flood Insurance Program rate maps with respect 
                to--
                            (i) all areas located within the 100-year 
                        floodplain;
                            (ii) all areas located within the 500-year 
                        floodplain;
                            (iii) areas of residual risk that have not 
                        previously been identified, including areas 
                        that are protected levees, dams, and other man-
                        made structures; and
                            (iv) areas that could be inundated as a 
                        result of the failure of a levee, dam, or other 
                        man-made structure;
                    (B) establish or update flood-risk zone data in all 
                such areas, and make estimates with respect to the 
                rates of probable flood caused loss for the various 
                flood risk zones for each such area; and
                    (C) use, in identifying, reviewing, updating, 
                maintaining, or publishing any National Flood Insurance 
                Program rate map required under this section or under 
                the National Flood Insurance Act of 1968, the most 
                accurate topography and elevation data available.
            (2) Mapping elements.--Each map updated under this section 
        shall:
                    (A) Ground elevation data.--Assess the accuracy of 
                current ground elevation data used for hydrologic and 
                hydraulic modeling of flooding sources and mapping of 
                the flood hazard and wherever necessary acquire new 
                ground elevation data utilizing the most up-to-date 
                geospatial technologies in accordance with the existing 
                guidelines and specifications of the Federal Emergency 
                Management Agency.
                    (B) Data on a watershed basis.--Develop National 
                Flood Insurance Program flood data on a watershed 
                basis--
                            (i) to provide the most technically 
                        effective and efficient studies and hydrologic 
                        and hydraulic modeling; and
                            (ii) to eliminate, to the maximum extent 
                        possible, discrepancies in base flood 
                        elevations between adjacent political 
                        subdivisions.
            (3) Other inclusions.--In updating maps under this section, 
        the Director shall include--
                    (A) any relevant information on coastal inundation 
                from--
                            (i) an applicable inundation map of the 
                        Corps of Engineers; and
                            (ii) data of the National Oceanic and 
                        Atmospheric Administration relating to storm 
                        surge modeling;
                    (B) any relevant information of the United States 
                Geological Survey on stream flows, watershed 
                characteristics, and topography that is useful in the 
                identification of flood hazard areas, as determined by 
                the Director;
                    (C) any relevant information on land subsidence, 
                coastal erosion areas, and other floor-related hazards;
                    (D) any relevant information or data of the 
                National Oceanic and Atmospheric Administration and the 
                United States Geological Survey relating to the best 
                available climate science and the potential for future 
                inundation from sea level rise, increased 
                precipitation, and increased intensity of hurricanes 
                due to global warming; and
                    (E) any other relevant information as may be 
                recommended by the Technical Mapping Advisory 
                Committee.
    (c) Standards.--In updating and maintaining maps under this 
section, the Director shall--
            (1) establish standards to--
                    (A) ensure that maps are adequate for--
                            (i) flood risk determinations; and
                            (ii) use by State and local governments in 
                        managing development to reduce the risk of 
                        flooding; and
                    (B) facilitate identification and use of consistent 
                methods of data collection and analysis by the 
                Director, in conjunction with State and local 
                governments, in developing maps for communities with 
                similar flood risks, as determined by the Director; and
            (2) publish maps in a format that is--
                    (A) digital geospatial data compliant;
                    (B) compliant with the open publishing and data 
                exchange standards established by the Open Geospatial 
                Consortium; and
                    (C) compliant with the North American Vertical 
                Datum of 1998 for New Hydrologic and Hydraulic 
                Engineering.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Director to carry out this section $400,000,000 for 
each of fiscal years 2008 through 2013.

SEC. 20. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR UPDATING 
              FLOOD MAPS.

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

SEC. 21. COORDINATION.

    (a) Interagency Budget Crosscut Report.--
            (1) In general.--The Secretary of Homeland Security, the 
        Director, the Director of the Office of Management and Budget, 
        and the heads of each Federal department or agency carrying out 
        activities under sections 18 and 19 shall work together to 
        ensure that flood risk determination data and geospatial data 
        are shared among Federal agencies in order to coordinate the 
        efforts of the Nation to reduce its vulnerability to flooding 
        hazards.
            (2) Report.--Not later than 30 days after the submission of 
        the budget of the United States Government by the President to 
        Congress, the Director of the Office of Management and Budget, 
        in coordination with the Federal Emergency Management Agency, 
        the United States Geological Survey, the National Oceanic and 
        Atmospheric Administration, the Corps of Engineers, and other 
        Federal agencies, as appropriate, shall submit to the 
        appropriate authorizing and appropriating committees of the 
        Senate and the House of Representatives a financial report, 
        certified by the Secretary or head of each such agency, an 
        interagency budget crosscut report that displays the budget 
        proposed for each of the Federal agencies working on flood risk 
        determination data and digital elevation models, including any 
        planned interagency or intraagency transfers.
    (b) Duties of the Director.--In carrying out sections 18 and 19, 
the Director shall--
            (1) participate, pursuant to section 216 of Public Law 107-
        347 (116 Stat. 2945), in the establishment of such standards 
        and common protocols as are necessary to assure the 
        interoperability of geospatial data for all users of such 
        information;
            (2) coordinate with, seek assistance and cooperation of, 
        and provide liaison to the Federal Geographic Data Committee 
        pursuant to Office of Management and Budget Circular A-16 and 
        Executive Order 12906 for the implementation of and compliance 
        with such standards;
            (3) integrate with, leverage, and coordinate funding of, to 
        the maximum extent practicable, the current flood mapping 
        activities of each unit of State and local government;
            (4) integrate with, leverage, and coordinate, to the 
        maximum extent practicable, the current geospatial activities 
        of other Federal agencies and units of State and local 
        government; and
            (5) develop a funding strategy to leverage and coordinate 
        budgets and expenditures, and to establish joint funding 
        mechanisms with other Federal agencies and units of State and 
        local government to share the collection and utilization of 
        geospatial data among all governmental users.

SEC. 22. INTERAGENCY COORDINATION STUDY.

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

SEC. 23. NONMANDATORY PARTICIPATION.

    (a) Nonmandatory Participation in National Flood Insurance Program 
for 500-Year Floodplain.--Any area located within the 500-year 
floodplain shall not be subject to the mandatory purchase requirements 
of sections 102 or 202 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a, 4106).
    (b) Notice.--
            (1) By director.--In carrying out the National Flood 
        Insurance Program, the Director shall provide notice to any 
        community located in an area within the 500-year floodplain.
            (2) Timing of notice.--The notice required under paragraph 
        (1) shall be made not later than 6 months after the date of 
        completion of the initial mapping of the 500-year floodplain, 
        as required under section 18.
            (3) Lender required notice.--
                    (A) Regulated lending institutions.--Each Federal 
                or State entity for lending regulation (after 
                consultation and coordination with the Federal 
                Financial Institutions Examination Council) shall, by 
                regulation, require regulated lending institutions, as 
                a condition of making, increasing, extending, or 
                renewing any loan secured by property located in an 
                area within the 500-year floodplain, to notify the 
                purchaser or lessee (or obtain satisfactory assurances 
                that the seller or lessor has notified the purchaser or 
                lessee) and the servicer of the loan that such property 
                is located in an area within the 500-year floodplain, 
                in a manner that is consistent with and substantially 
                identical to the notice required under section 
                1364(a)(1) of the National Flood Insurance Act of 1968 
                (42 U.S.C. 4104a(a)(1)).
                    (B) Federal or state agency lenders.--Each Federal 
                or State agency lender shall, by regulation, require 
                notification in the same manner as provided under 
                subparagraph (A) with respect to any loan that is made 
                by a Federal or State agency lender and secured by 
                property located in an area within the 500-year 
                floodplain.
                    (C) Penalty for noncompliance.--Any regulated 
                lending institution or Federal or State agency lender 
                that fails to comply with the notice requirements 
                established by this paragraph shall be subject to the 
                penalties prescribed under section 102(f)(5) of the 
                Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a(f)(5)).

SEC. 24. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

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

SEC. 25. TESTING OF NEW FLOODPROOFING TECHNOLOGIES.

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

SEC. 26. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.

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

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

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

SEC. 27. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 REFORM 
              ACT.

    (a) Minimum Training and Education Requirements.--The Director 
shall continue to work with the insurance industry, State insurance 
regulators, and other interested parties to implement the minimum 
training and education standards for all insurance agents who sell 
flood insurance policies, as such standards were determined by the 
Director in the notice published in the Federal Register on September 
1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
note).
    (b) Report on the Overall Implementation of the Reform Act of 
2004.--Not later than 3 months after the date of the enactment of this 
Act, the Director shall submit a report to Congress--
            (1) describing the implementation of each provision of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (Public Law 108-264; 118 Stat. 712);
            (2) identifying each regulation, order, notice, and other 
        material issued by the Director in implementing each provision 
        of that Act;
            (3) explaining any statutory or implied deadlines that have 
        not been met; and
            (4) providing an estimate of when the requirements of such 
        missed deadlines will be fulfilled.

SEC. 28. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION ON CLAIMS 
              PAYMENTS.

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

SEC. 29. EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

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

SEC. 30. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE 
              LOSS PROPERTIES.

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

SEC. 31. FLOOD INSURANCE ADVOCATE.

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

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

    ``(a) Establishment of Position.--
            ``(1) In general.--There shall be in the Federal Emergency 
        Management Agency an Office of the Flood Insurance Advocate 
        which shall be headed by the National Flood Insurance Advocate. 
        The National Flood Insurance Advocate shall report directly to 
        the Director and shall, to the extent amounts are provided 
        pursuant to subsection (f), 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 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 2 years after ceasing to be the National 
        Flood Insurance Advocate. Service as an employee of the 
        National Flood Insurance Advocate shall not be taken into 
        account in applying this paragraph.
            ``(5) Staff.--To the extent amounts are provided pursuant 
        to subsection (f), the National Flood Insurance Advocate may 
        employ such personnel as may be necessary to carry out the 
        duties of the Office.
    ``(b) Functions of Office.--
            ``(1) In general.--It shall be the function of the Office 
        of the Flood Insurance Advocate to--
                    ``(A) assist insureds under the national flood 
                insurance program in resolving problems with the 
                Federal Emergency Management Agency relating to such 
                program;
                    ``(B) identify areas in which such insureds have 
                problems in dealings with the Federal Emergency 
                Management Agency relating to such program;
                    ``(C) propose changes in the administrative 
                practices of the Federal Emergency Management Agency to 
                mitigate problems identified under subparagraph (B); 
                and
                    ``(D) identify potential legislative, 
                administrative, or regulatory changes which may be 
                appropriate to mitigate such problems.
            ``(2) Annual reports.--
                    ``(A) Activities.--Not later than December 31 of 
                each calendar year, the National Flood Insurance 
                Advocate shall report to the Committee on Banking, 
                Housing, and Urban Affairs of the Senate and the 
                Committee on Financial Services of the House of 
                Representatives on the activities of the Office of the 
                Flood Insurance Advocate during the fiscal year ending 
                during such calendar year. Any such report shall 
                contain a full and substantive analysis of such 
                activities, in addition to statistical information, and 
                shall--
                            ``(i) identify the initiatives the Office 
                        of the Flood Insurance Advocate has taken on 
                        improving services for insureds under the 
                        national flood insurance program and 
                        responsiveness of the Federal Emergency 
                        Management Agency with respect to such 
                        initiatives;
                            ``(ii) describe the nature of 
                        recommendations made to the Director under 
                        subsection (e);
                            ``(iii) contain a summary of the most 
                        serious problems encountered by such insureds, 
                        including a description of the nature of such 
                        problems;
                            ``(iv) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which action has been taken and the result of 
                        such action;
                            ``(v) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which action remains to be completed and the 
                        period during which each item has remained on 
                        such inventory;
                            ``(vi) contain an inventory of any items 
                        described in clauses (i), (ii), and (iii) for 
                        which no action has been taken, the period 
                        during which each item has remained on such 
                        inventory and the reasons for the inaction;
                            ``(vii) identify any Flood Insurance 
                        Assistance Recommendation which was not 
                        responded to by the Director in a timely manner 
                        or was not followed, as specified under 
                        subsection (e);
                            ``(viii) contain recommendations for such 
                        administrative and legislative action as may be 
                        appropriate to resolve problems encountered by 
                        such insureds;
                            ``(ix) identify areas of the law or 
                        regulations relating to the national flood 
                        insurance program that impose significant 
                        compliance burdens on such insureds or the 
                        Federal Emergency Management Agency, including 
                        specific recommendations for remedying these 
                        problems;
                            ``(x) identify the most litigated issues 
                        for each category of such insureds, including 
                        recommendations for mitigating such disputes; 
                        and
                            ``(xi) include such other information as 
                        the National Flood Insurance Advocate may deem 
                        advisable.
                    ``(B) Direct submission of report.--Each report 
                required under this paragraph shall be provided 
                directly to the committees identified in subparagraph 
                (A) without any prior review or comment from the 
                Director, the Secretary of Homeland Security, or any 
                other officer or employee of the Federal Emergency 
                Management Agency or the Department of Homeland 
                Security, or the Office of Management and Budget.
            ``(3) Other responsibilities.--The National Flood Insurance 
        Advocate shall--
                    ``(A) monitor the coverage and geographic 
                allocation of regional offices of flood insurance 
                advocates;
                    ``(B) develop guidance to be distributed to all 
                Federal Emergency Management Agency officers and 
                employees having duties with respect to the national 
                flood insurance program, outlining the criteria for 
                referral of inquiries by insureds under such program to 
                regional offices of flood insurance advocates;
                    ``(C) ensure that the local telephone number for 
                each regional office of the flood insurance advocate is 
                published and available to such insureds served by the 
                office; and
                    ``(D) establish temporary State or local offices 
                where necessary to meet the needs of qualified insureds 
                following a flood event.
            ``(4) Personnel actions.--
                    ``(A) In general.--The National Flood Insurance 
                Advocate shall have the responsibility and authority 
                to--
                            ``(i) appoint regional flood insurance 
                        advocates in a manner that will provide 
                        appropriate coverage based upon regional flood 
                        insurance program participation; and
                            ``(ii) hire, evaluate, and take personnel 
                        actions (including dismissal) with respect to 
                        any employee of any regional office of a flood 
                        insurance advocate described in clause (i).
                    ``(B) Consultation.--The National Flood Insurance 
                Advocate may consult with the appropriate supervisory 
                personnel of the Federal Emergency Management Agency in 
                carrying out the National Flood Insurance Advocate's 
                responsibilities under this paragraph.
    ``(c) Responsibilities of Director.--The Director shall establish 
procedures requiring a formal response consistent with the requirements 
of subsection (e)(3) to all recommendations submitted to the Director 
by the National Flood Insurance Advocate.
    ``(d) Operation of Regional Offices.--
            ``(1) In general.--Each regional flood insurance advocate 
        appointed pursuant to subsection (b)--
                    ``(A) shall report to the National Flood Insurance 
                Advocate or delegate thereof;
                    ``(B) may consult with the appropriate supervisory 
                personnel of the Federal Emergency Management Agency 
                regarding the daily operation of the regional office of 
                the flood insurance advocate;
                    ``(C) shall, at the initial meeting with any 
                insured under the national flood insurance program 
                seeking the assistance of a regional office of the 
                flood insurance advocate, notify such insured that the 
                flood insurance advocate offices operate independently 
                of any other Federal Emergency Management Agency office 
                and report directly to Congress through the National 
                Flood Insurance Advocate; and
                    ``(D) may, at the flood insurance advocate's 
                discretion, not disclose to the Director contact with, 
                or information provided by, such insured.
            ``(2) Maintenance of independent communications.--Each 
        regional office of the flood insurance advocate shall maintain 
        a separate phone, facsimile, and other electronic communication 
        access.
    ``(e) Flood Insurance Assistance Recommendations.--
            ``(1) Authority to issue.--Upon application filed by a 
        qualified insured with the Office of the Flood Insurance 
        Advocate (in such form, manner, and at such time as the 
        Director shall by regulation prescribe), the National Flood 
        Insurance Advocate may issue a Flood Insurance Assistance 
        Recommendation, if the Advocate finds that the qualified 
        insured is suffering a significant hardship, such as a 
        significant delay in resolving claims where the insured is 
        incurring significant costs as a result of such delay, or where 
        the insured is at risk of adverse action, including the loss of 
        property, as a result of the manner in which the flood 
        insurance laws are being administered by the Director.
            ``(2) Terms of a flood insurance assistance 
        recommendation.--The terms of a Flood Insurance Assistance 
        Recommendation may recommend to the Director that the Director, 
        within a specified time period, cease any action, take any 
        action as permitted by law, or refrain from taking any action, 
        including the payment of claims, with respect to the qualified 
        insured under any other provision of law which is specifically 
        described by the National Flood Insurance Advocate in such 
        recommendation.
            ``(3) Director response.--Not later than 15 days after the 
        receipt of any Flood Insurance Assistance Recommendation under 
        this subsection, the Director shall respond in writing as to--
                    ``(A) whether such recommendation was followed;
                    ``(B) why such recommendation was or was not 
                followed; and
                    ``(C) what, if any, additional actions were taken 
                by the Director to prevent the hardship indicated in 
                such recommendation.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) National flood insurance advocate.--The term 
                `National Flood Insurance Advocate' includes any 
                designee of the National Flood Insurance Advocate.
                    ``(B) Qualified insured.--The term `qualified 
                insured' means an insured under coverage provided under 
                the national flood insurance program under this title.
    ``(f) Funding.--Pursuant to section 1310(a)(8), the Director may 
use amounts from the National Flood Insurance Fund to fund the 
activities of the Office of the Flood Advocate in each of fiscal years 
2008 through 2013, except that the amount so used in each such fiscal 
year may not exceed $5,000,000 and shall remain available until 
expended. Notwithstanding any other provision of this title, amounts 
made available pursuant to this subsection shall not be subject to 
offsetting collections through premium rates for flood insurance 
coverage under this title.''.

SEC. 32. STUDIES AND REPORTS.

    (a) Report on Expanding the National Flood Insurance Program.--Not 
later than 1 year after the date of the enactment of this Act, the 
Comptroller General of the United States shall conduct a study and 
submit a report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, on--
            (1) the number of flood insurance policy holders currently 
        insuring--
                    (A) a residential structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of--
                            (i) $250,000 for the structure; and
                            (ii) $100,000 for the contents of such 
                        structure; or
                    (B) a commercial structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of 
                $500,000;
            (2) the increased losses the National Flood Insurance 
        Program would have sustained during the 2004 and 2005 hurricane 
        season if the National Flood Insurance Program had insured all 
        policyholders up to the maximum conforming loan limit for 
        fiscal year 2006 of $417,000, as established under section 
        302(b)(2) of the Federal National Mortgage Association Charter 
        Act (12 U.S.C. 1717(b)(2));
            (3) the availability in the private marketplace of flood 
        insurance coverage in amounts that exceed the current limits of 
        coverage amounts established in section 61.6 of title 44, Code 
        of Federal Regulations; and
            (4) what effect, if any--
                    (A) raising the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of 
                Federal Regulations, would have on the ability of 
                private insurers to continue providing flood insurance 
                coverage; and
                    (B) reducing the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of 
                Federal Regulations, would have on the ability of 
                private insurers to provide sufficient flood insurance 
                coverage to effectively replace the current level of 
                flood insurance coverage being provided under the 
                National Flood Insurance Program.
    (b) Report of the Director on Activities Under the National Flood 
Insurance Program.--
            (1) In general.--The Director shall, on an annual basis, 
        submit a full report on the operations, activities, budget, 
        receipts, and expenditures of the National Flood Insurance 
        Program for the preceding 12-month period to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
            (2) Timing.--Each report required under paragraph (1) shall 
        be submitted to the committees described in paragraph (1) not 
        later than 3 months following the end of each fiscal year.
            (3) Contents.--Each report required under paragraph (1) 
        shall include--
                    (A) the current financial condition and income 
                statement of the National Flood Insurance Fund 
                established under section 1310 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4017), including--
                            (i) premiums paid into such Fund;
                            (ii) policy claims against such Fund; and
                            (iii) expenses in administering such Fund;
                    (B) the number and face value of all policies 
                issued under the National Flood Insurance Program that 
                are in force;
                    (C) a description and summary of the losses 
                attributable to repetitive loss structures;
                    (D) a description and summary of all losses 
                incurred by the National Flood Insurance Program due 
                to--
                            (i) hurricane related damage; and
                            (ii) nonhurricane related damage;
                    (E) the amounts made available by the Director for 
                mitigation assistance under section 1366(e)(5) of the 
                National Flood Insurance Act of 1968 (42 U.S.C. 
                4104c(e)(5)) for the purchase of properties 
                substantially damaged by flood for that fiscal year, 
                and the actual number of flood damaged properties 
                purchased and the total cost expended to purchase such 
                properties;
                    (F) the estimate of the Director as to the average 
                historical loss year, and the basis for that estimate;
                    (G) the estimate of the Director as to the maximum 
                amount of claims that the National Flood Insurance 
                Program would have to expend in the event of a 
                catastrophic year;
                    (H) the average--
                            (i) amount of insurance carried per flood 
                        insurance policy;
                            (ii) premium per flood insurance policy; 
                        and
                            (iii) loss per flood insurance policy; and
                    (I) the number of claims involving damages in 
                excess of the maximum amount of flood insurance 
                available under the National Flood Insurance Program 
                and the sum of the amount of all damages in excess of 
                such amount.
    (c) GAO Study on Pre-FIRM Structures.--Not later than 1 year after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall conduct a study and submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives, on 
the--
            (1) composition of the remaining pre-FIRM structures that 
        are explicitly receiving discounted premium rates under section 
        1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4104), including the historical basis for the receipt of such 
        subsidy and whether such subsidy has outlasted its purpose;
            (2) number and fair market value of such structures;
            (3) respective income level of each owner of such 
        structure;
            (4) number of times each such structure has been sold since 
        1968, including specific dates, sales price, and any other 
        information the Secretary determines appropriate;
            (5) total losses incurred by such structures since the 
        establishment of the National Flood Insurance Program compared 
        to the total losses incurred by all structures that are charged 
        a nondiscounted premium rate;
            (6) total cost of foregone premiums since the establishment 
        of the National Flood Insurance Program, as a result of the 
        subsidies provided to such structures;
            (7) annual cost to the taxpayer, as a result of the 
        subsidies provided to such structures;
            (8) the premium income collected and the losses incurred by 
        the National Flood Insurance Program as a result of such 
        explicitly subsidized structures compared to the premium income 
        collected and the losses incurred by such Program as result of 
        structures that are charged a nondiscounted premium rate, on a 
        State-by-State basis; and
            (9) the most efficient way to eliminate the subsidy to such 
        structures.
    (d) GAO Review of FEMA Contractors.--The Comptroller General of the 
United States, in conjunction with the Department of Homeland 
Security's Inspectors general Office, shall--
            (1) conduct a review of the 3 largest contractors the 
        Director uses in administering the National Flood Insurance 
        Program; and
            (2) not later than 18 months after the date of enactment of 
        this Act, submit a report on the findings of such review to the 
        Director, the Committee on Banking, Housing, and Urban Affairs 
        of the Senate, and the Committee on Financial Services of the 
        House of Representatives.
                                                       Calendar No. 460

110th CONGRESS

  1st Session

                                S. 2284

                          [Report No. 110-214]

_______________________________________________________________________

                                 A BILL

   To amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, and for other purposes.

_______________________________________________________________________

                            November 1, 2007

                 Read twice and placed on the calendar