II 111th CONGRESS 2d Session S. 3994 IN THE SENATE OF THE UNITED STATES December 1, 2010 Mr. Durbin (for himself and Mr. Schumer) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To delay the effective date of the mandatory purchase requirement for new flood hazard areas, and for other purposes.

1.

Short title

This Act may be cited as the Flood Insurance Affordability and Risk Notification Act.

2.

5-year delay in effective date of mandatory purchase requirement for new flood hazard areas

(a)

In general

Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following new subsections: (i)

Delayed effective date of mandatory purchase requirement for new flood hazard areas

(1)

In general

In the case of any area that was not previously designated as an area having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in flood insurance maps that takes effect on or after September 30, 2007, becomes designated as an area having special flood hazards, if each State and local government having jurisdiction over any portion of the geographic area has complied with paragraph (2), such designation shall not take effect for purposes of subsection (a), (b), or (e) of this section, or section 202(a) of this Act, until the expiration of the 5-year period beginning upon the date that such maps, as issued, revised, update, or otherwise changed, become effective. (2)

Notice requirements

A State or local government shall be considered to have complied with this paragraph with respect to any geographic area described in paragraph (1) only if the State or local government has in accordance with such standards as shall be established by the Director— (A)developed an evacuation plan to be implemented in the event of flooding in such portion of the geographic area; and (B)developed and implemented an outreach and communication plan to advise occupants in such portion of the geographic area of potential flood risks, appropriate evacuation routes under the evacuation plan referred to in subparagraph (A), the opportunity to purchase flood insurance, and the consequences of failure to purchase flood insurance. (3)

Rule of construction

Nothing in paragraph (1) may be construed to affect the applicability of a designation of any area as an area having special flood hazards for purposes of the availability of flood insurance coverage, criteria for land management and use, notification of flood hazards, eligibility for mitigation assistance, or any other purpose or provision not specifically referred to in paragraph (1). (j)

Availability of preferred risk rating method premiums

The preferred risk rate method premium shall be available for flood insurance coverage for properties located in areas referred to in subsection (i)(1) and during the time period referred to in subsection (i)(1). . (b)

Conforming amendment

The second sentence of subsection (h) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101(h)) is amended by striking Such and inserting Except for notice regarding a change described in section 102(i)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such. (c)

No refunds

Nothing in this section or the amendments made by this section may be construed to authorize or require any payment or refund for flood insurance coverage purchased for any property that covered any period during which such coverage is not required for the property pursuant to the applicability of the amendment made by subsection (a).

3.

5-year phase-in of flood insurance rates for newly mapped areas

(a)

In general

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended— (1)in subsection (a), in the matter preceding paragraph (1), by inserting or notice after prescribe by regulation; (2)in subsection (c), by inserting and subsection (g) before the first comma; and (3)by adding at the end the following new subsection: (g)

5-Year phase-In of flood insurance rates for newly mapped areas

Notwithstanding any other provision of law relating to chargeable risk premium rates for flood insurance coverage under this title, in the case of any area that was not previously designated as an area having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in flood insurance maps, becomes designated as such an area, during the 5-year period that begins upon the expiration of the period referred to in section 102(i)(1) of the Flood Disaster Protection Act of 1973 with respect to such area, the chargeable premium rate for flood insurance under this title with respect to any property that is located within such area shall be— (1)for the first year of such 5-year period, 20 percent of the chargeable risk premium rate otherwise applicable under this title to the property; (2)for the second year of such 5-year period, 40 percent of the chargeable risk premium rate otherwise applicable under this title to the property; (3)for the third year of such 5-year period, 60 percent of the chargeable risk premium rate otherwise applicable under this title to the property; (4)for the fourth year of such 5-year period, 80 percent of the chargeable risk premium rate otherwise applicable under this title to the property; and (5)for the fifth year of such 5-year period, 100 percent of the chargeable risk premium rate otherwise applicable under this title to the property. . (b)

Regulation or notice

The Administrator of the Federal Emergency Management Agency shall issue an interim final rule or notice to implement this section and the amendments made by this section as soon as practicable after the date of the enactment of this Act.

4.

Communication and outreach

(a)

In general

The Administrator of the Federal Emergency Management Agency shall— (1)work to enhance communication and outreach to States, local communities, and property owners about the effects of— (A)any potential changes or updates to National Flood Insurance Program rate maps that may result under section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101); and (B)that any such changes or updates may have on flood insurance purchase requirements; (2)engage with local communities to enhance communication and outreach to the residents of such communities on the matters described under subparagraph (A); and (3)on the website of the Federal Emergency Management Agency make publicly available information on— (A)the various types of flood protection measures applicable to different classes and types of structures that are located in an area having special flood hazards; (B)the property and casualty insurance companies that participate in the National Flood Insurance Program and that write and service standard flood insurance policies; (C)the availability and cost of flood insurance— (i)under the National Flood Insurance Program; and (ii)in the private marketplace; (D)data related to the structural status of each levee, dam, or other man-made structure designed to provide protection from floods; and (E)how homeowners and communities can mitigate their flood risk. (b)

Required activities

The communication and outreach activities required under paragraph (1) shall include— (1)notifying property owners when their properties become included in, or when they are excluded from, an area having special flood hazards and the effect of such inclusion or exclusion on the applicability of the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such properties; (2)educating property owners regarding the flood risk and reduction of this risk in their community, including the continued flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement; (3)educating property owners regarding the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) for such properties and the contents of such properties; (4)educating property owners about flood map revisions and the process available to such owners to appeal proposed changes in flood elevations through their community; and (5)encouraging property owners to maintain or acquire flood insurance coverage.