[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5740 Engrossed in House (EH)]
112th CONGRESS
2d Session
H. R. 5740
_______________________________________________________________________
AN ACT
To extend the National Flood Insurance Program, 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.
This Act may be cited as the ``National Flood Insurance Program
Extension Act''.
SEC. 2. EXTENSION OF PROGRAM.
(a) In General.--Section 1319 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4026) is amended by striking ``the earlier of the
date of the enactment into law of an Act that specifically amends the
date specified in this section or May 31, 2012'' and inserting ``June
30, 2012''.
(b) Financing.--Section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``the earlier of the
date of the enactment into law of an Act that specifically amends the
date specified in this section or May 31, 2012'' and inserting ``June
30, 2012''.
SEC. 3. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY PURCHASE
REQUIREMENT.
Section 102(b) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``lending institutions not to
make'' and inserting ``lending institutions--
``(A) not to make'';
(B) in subparagraph (A), as designated by
subparagraph (A) of this paragraph, by striking
``less.'' and inserting ``less; and''; and
(C) by adding at the end the following new
subparagraph:
``(B) to accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under subparagraph (A) if the coverage
provided by such private flood insurance meets the
requirements for coverage under such subparagraph.'';
(2) in paragraph (2), by inserting after ``provided in
paragraph (1).'' the following new sentence: ``Each Federal
agency lender shall accept private flood insurance as
satisfaction of the flood insurance coverage requirement under
the preceding sentence if the flood insurance coverage provided
by such private flood insurance meets the requirements for
coverage under such sentence.'';
(3) in paragraph (3), in the matter following subparagraph
(B), by adding at the end the following new sentence: ``The
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation shall accept private flood insurance as
satisfaction of the flood insurance coverage requirement under
the preceding sentence if the flood insurance coverage provided
by such private flood insurance meets the requirements for
coverage under such sentence.''; and
(4) by adding at the end the following new paragraph:
``(5) Private flood insurance defined.--In this subsection,
the term `private flood insurance' means a contract for flood
insurance coverage allowed for sale under the laws of any
State.''.
SEC. 4. PRIVATIZATION INITIATIVES.
(a) FEMA and GAO Reports.--Not later than the expiration of the 18-
month period beginning on the date of the enactment of this Act, the
Administrator of the Federal Emergency Management Agency and the
Comptroller General of the United States shall each conduct a separate
study to assess a broad range of options, methods, and strategies for
privatizing the national flood insurance program and shall each submit
a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate with recommendations for the best manner to
accomplish such privatization.
(b) Private Risk-Management Initiatives.--
(1) Authority.--The Administrator of the Federal Emergency
Management Agency may carry out such private risk-management
initiatives under the national flood insurance program as the
Administrator considers appropriate to determine the capacity
of private insurers, reinsurers, and financial markets to
assist communities, on a voluntary basis only, in managing the
full range of financial risks associated with flooding.
(2) Assessment.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act, the Administrator shall assess the capacity of the private
reinsurance, capital, and financial markets by seeking
proposals to assume a portion of the program's insurance risk
and submit to the Congress a report describing the response to
such request for proposals and the results of such assessment.
(3) Protocol for release of data.--The Administrator shall
develop a protocol to provide for the release of data
sufficient to conduct the assessment required under paragraph
(2).
(c) Reinsurance.--The National Flood Insurance Act of 1968 is
amended--
(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by
inserting ``, including as reinsurance of insurance coverage
provided by the flood insurance program'' before ``, on such
terms'';
(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by
inserting ``or reinsurance'' after ``flood insurance
coverage'';
(3) in section 1335(a) (42 U.S.C. 4055(a))--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding at the end the following new
paragraph:
``(2) The Director is authorized to secure reinsurance coverage of
coverage provided by the flood insurance program from private market
insurance, reinsurance, and capital market sources at rates and on
terms determined by the Director to be reasonable and appropriate in an
amount sufficient to maintain the ability of the program to pay claims
and that minimizes the likelihood that the program will utilize the
borrowing authority provided under section 1309.'';
(4) in section 1346(a) (12 U.S.C. 4082(a))--
(A) in the matter preceding paragraph (1), by
inserting ``, or for purposes of securing reinsurance
of insurance coverage provided by the program,'' before
``of any or all of'';
(B) in paragraph (1)--
(i) by striking ``estimating'' and
inserting ``Estimating''; and
(ii) by striking the semicolon at the end
and inserting a period;
(C) in paragraph (2)--
(i) by striking ``receiving'' and inserting
``Receiving''; and
(ii) by striking the semicolon at the end
and inserting a period;
(D) in paragraph (3)--
(i) by striking ``making'' and inserting
``Making''; and
(ii) by striking ``; and'' and inserting a
period;
(E) in paragraph (4)--
(i) by striking ``otherwise'' and inserting
``Otherwise''; and
(ii) by redesignating such paragraph as
paragraph (5); and
(F) by inserting after paragraph (3) the following
new paragraph:
``(4) Placing reinsurance coverage on insurance provided by
such program.''; and
(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by
inserting before the semicolon at the end the following: ``, is
subject to the reporting requirements of the Securities
Exchange Act of 1934, pursuant to section 13(a) or 15(d) of
such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the
Director to assume reinsurance on risks insured by the flood
insurance program''.
(d) Assessment of Claims-Paying Ability.--
(1) Assessment.--Not later than September 30 of each year,
the Administrator of the Federal Emergency Management Agency
shall conduct an assessment of the claims-paying ability of the
national flood insurance program, including the program's
utilization of private sector reinsurance and reinsurance
equivalents, with and without reliance on borrowing authority
under section 1309 of the National Flood Insurance Act of 1968
(42 U.S.C. 4016). In conducting the assessment, the
Administrator shall take into consideration regional
concentrations of coverage written by the program, peak flood
zones, and relevant mitigation measures.
(2) Report.--The Administrator shall submit a report to the
Congress of the results of each such assessment, and make such
report available to the public, not later than 30 days after
completion of the assessment.
SEC. 5. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.
(a) Studies.--The Administrator of the Federal Emergency Management
Agency and the Comptroller General of the United States shall each
conduct a separate study to assess options, methods, and strategies for
offering voluntary community-based flood insurance policy options and
incorporating such options into the national flood insurance program.
Such studies shall take into consideration and analyze how the policy
options would affect communities having varying economic bases,
geographic locations, flood hazard characteristics or classifications,
and flood management approaches.
(b) Reports.--Not later than the expiration of the 18-month period
beginning on the date of the enactment of this Act, the Administrator
of the Federal Emergency Management Agency and the Comptroller General
of the United States shall each submit a report to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on the results and
conclusions of the study such agency conducted under subsection (a),
and each such report shall include recommendations for the best manner
to incorporate voluntary community-based flood insurance options into
the national flood insurance program and for a strategy to implement
such options that would encourage communities to undertake flood
mitigation activities.
Passed the House of Representatives May 17, 2012.
Attest:
Clerk.
112th CONGRESS
2d Session
H. R. 5740
_______________________________________________________________________
AN ACT
To extend the National Flood Insurance Program, and for other purposes.