[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1940 Reported in Senate (RS)]

                                                       Calendar No. 250
112th CONGRESS
  1st Session
                                S. 1940

                          [Report No. 112-98]

   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

                            December 5, 2011

 Mr. Johnson of South Dakota, 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. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Minimum deductibles for claims under the National Flood 
                            Insurance Program.
Sec. 113. Considerations in determining chargeable premium rates.
Sec. 114. Reserve fund.
Sec. 115. Repayment plan for borrowing authority.
Sec. 116. Payment of condominium claims.
Sec. 117. Technical mapping advisory council.
Sec. 118. National flood mapping program.
Sec. 119. Scope of appeals.
Sec. 120. Scientific Resolution Panel.
Sec. 121. Removal of limitation on State contributions for updating 
                            flood maps.
Sec. 122. Coordination.
Sec. 123. Interagency coordination study.
Sec. 124. Nonmandatory participation.
Sec. 125. Notice of flood insurance availability under RESPA.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Additional authority of FEMA to collect information on claims 
                            payments.
Sec. 128. Oversight and expense reimbursements of insurance companies.
Sec. 129. Mitigation.
Sec. 130. Flood Protection Structure Accreditation Task Force.
Sec. 131. Flood in progress determinations.
Sec. 132. Clarification of residential and commercial coverage limits.
Sec. 133. Local data requirement.
Sec. 134. Eligibility for flood insurance for persons residing in 
                            communities that have made adequate 
                            progress on the construction, 
                            reconstruction, or improvement of a flood 
                            protection system.
Sec. 135. Studies and reports.
Sec. 136. Reinsurance.
Sec. 137. GAO study on business interruption and additional living 
                            expenses coverages.
Sec. 138. Policy disclosures.
Sec. 139. Report on inclusion of building codes in floodplain 
                            management criteria.
Sec. 140. Study of participation and affordability for certain 
                            policyholders.
Sec. 141. Study and report concerning the participation of Indian 
                            tribes and members of Indian tribes in the 
                            National Flood Insurance Program.
Sec. 142. Technical corrections.
    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the commission.
Sec. 206. Report.
Sec. 207. Powers of the commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Flood Insurance Reform and 
Modernization Act of 2011''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) the flood insurance claims resulting from the hurricane 
        season of 2005 exceeded 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 $19,000,000,000 from the 
        Treasury;
            (3) the interest alone on this debt has been as high as 
        $800,000,000 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) events throughout the country involving areas behind 
        flood control structures, known as ``residual risk'' areas, 
        have produced catastrophic losses;
            (7) although such flood control 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. 103. DEFINITIONS.

    (a) In General.--In this title, the following definitions shall 
apply:
            (1) 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.
            (2) 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.
            (3) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (4) 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.).
            (5) Write your own.--The term ``Write Your Own'' means the 
        cooperative undertaking between the insurance industry and the 
        Federal 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 
title, any terms used in this title shall have the meaning given to 
such terms under section 1370 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4121).

SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``2011'' and 
inserting ``2016''
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026), is amended by striking ``2011'' 
and inserting ``2016''.

SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

    Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended--
            (1) in subsection (b)(2)(A), by inserting ``not described 
        in subsection (a) or (d)'' after ``properties''; and
            (2) by adding at the end the following:
    ``(d) Availability of Insurance for Multifamily Properties.--
            ``(1) In general.--The Administrator 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 Administrator 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. 106. 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)(2), by striking ``; and'' and 
                inserting the following: ``, except that the 
                Administrator shall not estimate rates under this 
                paragraph for--
                    ``(A) any property which is not the primary 
                residence of an individual;
                    ``(B) any severe repetitive loss property;
                    ``(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; or
                    ``(E) any property which on or after the date of 
                the enactment of the Flood Insurance Reform and 
                Modernization Act of 2011 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''; and
                    (B) by adding at the end the following:
    ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
The Administrator 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 the enactment of the Flood Insurance 
        Reform and Modernization Act of 2011;
            ``(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; or
            ``(3) any prospective insured who refuses to accept any 
        offer for mitigation assistance by the Administrator (including 
        an offer to relocate), including an offer of mitigation 
        assistance--
                    ``(A) following a major disaster, as defined in 
                section 102 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5122); or
                    ``(B) in connection with--
                            ``(i) a repetitive loss property; or
                            ``(ii) a severe repetitive loss property.
    ``(h) Definition.--In this section, the term `severe repetitive 
loss property' has the following meaning:
            ``(1) Single-family properties.--In the case of a property 
        consisting of 1 to 4 residences, such term means a property 
        that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                            ``(i) for which 4 or more separate claims 
                        payments have been made under flood insurance 
                        coverage under this chapter, with the amount of 
                        each such claim exceeding $5,000, and with the 
                        cumulative amount of such claims payments 
                        exceeding $20,000; or
                            ``(ii) for which at least 2 separate claims 
                        payments have been made under such coverage, 
                        with the cumulative amount of such claims 
                        exceeding the value of the property.
            ``(2) Multifamily properties.--In the case of a property 
        consisting of more than 4 units, such term shall have such 
        meaning as the Director shall by regulation provide.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall become effective 90 days after the date of the enactment 
        of this Act.
    (b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is 
amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii), by adding ``and'' at the end; and
            (3) by inserting after clause (iii) the following:
                            ``(iv) all costs, as prescribed by 
                        principles and standards of practice in 
                        ratemaking adopted by the American Academy of 
                        Actuaries and the Casualty Actuarial Society, 
                        including--
                                    ``(I) an estimate of the expected 
                                value of future costs,
                                    ``(II) all costs associated with 
                                the transfer of risk, and
                                    ``(III) the costs associated with 
                                an individual risk transfer with 
                                respect to risk classes, as defined by 
                                the Administrator,''.
    (c) 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'';
            (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 subparagraphs (A) through (E) of section 
        1307(a)(2) 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).''.
    (d) Premium Payment Flexibility for New and Existing 
Policyholders.--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) Frequency of Premium Collection.--With respect to any 
chargeable premium rate prescribed under this section, the 
Administrator shall provide policyholders that are not required to 
escrow their premiums and fees for flood insurance as set forth under 
section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) with the option of paying their premiums either annually or in 
more frequent installments.''.

SEC. 107. MANDATORY COVERAGE AREAS.

    (a) Special Flood Hazard Areas.--Not later than 90 days after the 
date of the enactment of this Act, the Administrator 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 require the expansion of areas of special flood hazards to 
include areas of residual risk that are located behind levees or near 
dams or other flood control structures, as determined by the 
Administrator.
    (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 
        Administrator determines essential in order to administer the 
        National Flood Insurance Program, as required under section 
        118, are in the maintenance phase.
            (3) Accurate pricing.--In carrying out the mandatory 
        purchase requirement under paragraph (1), the Administrator 
        shall ensure that the price of flood insurance policies in 
        areas of residual risk accurately reflects the level of flood 
        protection provided by any levee, dam, or other flood control 
        structure in such area, regardless of the certification status 
        of the flood control structure.
    (d) Decertification.--Upon decertification of any levee, dam, or 
flood control structure under the jurisdiction of the Army Corps of 
Engineers, the Corps shall immediately provide notice to the 
Administrator of the National Flood Insurance Program.

SEC. 108. PREMIUM ADJUSTMENT.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by section 106(c), is further amended by adding at 
the end the following:
    ``(h) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding subsection (f), upon the effective date of any revised 
or updated flood insurance rate map under this Act, the Flood Disaster 
Protection Act of 1973, or the Flood Insurance Reform and Modernization 
Act of 2011, 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 effective date of such an update that is a 
result of such updating shall be phased in over a 4-year period, at the 
rate of 40 percent for the first year following such effective date and 
20 percent for each of the second, third, and fourth years following 
such effective date. 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 a flood 
insurance map, becomes designated as such an area, the chargeable risk 
premium rate for flood insurance under this title that is purchased on 
or after the date of enactment of this subsection with respect to any 
property that is located within such area shall be phased in over a 4-
year period, at the rate of 40 percent for the first year following the 
effective date of such issuance, revision, updating, or change and 20 
percent for each of the second, third, and fourth years following such 
effective date.''.

SEC. 109. 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 the date that is 
        6 months after the date of enactment of the Flood Insurance 
        Reform and Modernization Act of 2011, lending institutions 
        chartered by a State, and not insured by the Federal Deposit 
        Insurance Corporation or the National Credit Union 
        Administration, 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. 110. 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. 111. 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 Administrator 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 
                Administrator, 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 flood 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 the enactment 
of this Act.

SEC. 112. 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 Administrator 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 Administrator 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 Administrator under section 
        1360 for the area in which such structure is located, the 
        minimum annual deductible for damage to such structure shall 
        be--
                    ``(A) $1,000, 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) $1,250, 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. 113. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by this Act, 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:
    ``(i) 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. 114. 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 (42 U.S.C. 
4017) the following:

``SEC. 1310A. RESERVE FUND.

    ``(a) Establishment of Reserve Fund.--In carrying out the flood 
insurance program authorized by this chapter, the Administrator 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 Administrator; 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 Administrator 
        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 Administrator 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 Administrator 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 Administrator 
                determines appropriate.
            ``(3) Limitations.--In exercising the authority granted 
        under paragraph (1), the Administrator 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 2012 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved, in each such fiscal year the 
        Administrator 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 Administrator 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 Administrator 
        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 Administrator determines that the reserve ratio required under 
subsection (b) cannot be achieved, the Administrator shall submit a 
report to Congress that--
            ``(1) describes and details the specific concerns of the 
        Administrator regarding the consequences of the reserve ratio 
        not being achieved;
            ``(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. 115. 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) Upon the exercise of the authority established under 
subsection (a), the Administrator shall transmit a schedule for 
repayment of such amounts to--
            ``(1) the Secretary of the Treasury;
            ``(2) the Committee on Banking, Housing, and Urban Affairs 
        of the Senate; and
            ``(3) the Committee on Financial Services of the House of 
        Representatives.
    ``(d) In connection with any funds borrowed by the Administrator 
under the authority established in subsection (a), the Administrator, 
beginning 6 months after the date on which such funds are borrowed, and 
continuing every 6 months thereafter until such borrowed funds are 
fully repaid, shall submit a report on the progress of such repayment 
to--
            ``(1) the Secretary of the Treasury;
            ``(2) the Committee on Banking, Housing, and Urban Affairs 
        of the Senate; and
            ``(3) the Committee on Financial Services of the House of 
        Representatives.''.

SEC. 116. PAYMENT OF CONDOMINIUM CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 112, is amended by adding at the end the 
following:
    ``(c) Payment of Claims to Condominium Owners.--The Administrator 
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.''.

SEC. 117. 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 
        Administrator, or the designee thereof, and 17 additional 
        members to be appointed by the Administrator or the designee of 
        the Administrator, 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);
                    (L) a member of a recognized regional flood and 
                storm water management organization;
                    (M) a representative of a State agency that has 
                entered into a cooperating technical partnership with 
                the Administrator and has demonstrated the capability 
                to produce flood insurance rate maps;
                    (N) a representative of a local government agency 
                that has entered into a cooperating technical 
                partnership with the Administrator and has demonstrated 
                the capability to produce flood insurance rate maps;
                    (O) a member of a recognized floodplain management 
                association or organization;
                    (P) a member of a recognized risk management 
                association or organization; and
                    (Q) a State mitigation officer.
            (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 Administrator 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 Administrator 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 Administrator 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 Administrator 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 Administrator 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 118; and
                    (C) a summary of recommendations made by the 
                Council to the Administrator.
    (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 the 
                enactment of this Act, prepare written recommendations 
                in a future conditions risk assessment and modeling 
                report and to submit such recommendations to the 
                Administrator.
            (2) Responsibility of the administrator.--The 
        Administrator, as part of the ongoing program to review and 
        update National Flood Insurance Program rate maps under section 
        118, 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 Office of Management and Budget 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 Administrator, or a person 
        designated by the Administrator, 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 Administrator 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 nonreimbursable 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 Administrator, 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;
            (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve flood 
        insurance rate maps and flood risk data; and
            (3) any recommendations made by the Council that have been 
        deferred or not acted upon, together with an explanatory 
        statement.

SEC. 118. NATIONAL FLOOD MAPPING PROGRAM.

    (a) Reviewing, Updating, and Maintaining Maps.--The Administrator, 
in coordination with the Technical Mapping Advisory Council established 
under section 117, shall establish an ongoing program under which the 
Administrator 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 Administrator shall--
                    (A) identify, review, update, maintain, and publish 
                National Flood Insurance Program rate maps with respect 
                to--
                            (i) all populated areas and areas of 
                        possible population growth located within the 
                        100-year floodplain;
                            (ii) all populated areas and areas of 
                        possible population growth located within the 
                        500-year floodplain;
                            (iii) areas of residual risk, including 
                        areas that are protected by levees, dams, and 
                        other flood control structures;
                            (iv) areas that could be inundated as a 
                        result of the failure of a levee, dam, or other 
                        flood control structure; and
                            (v) the level of protection provided by 
                        flood control structures;
                    (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 (42 U.S.C. 
                4011 et seq.), the most accurate topography and 
                elevation data available.
            (2) Mapping elements.--Each map updated under this section 
        shall--
                    (A) 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 guidelines and specifications of the 
                Federal Emergency Management Agency; and
                    (B) 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 Administrator 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 Administrator;
                    (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 Administrator 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 
                Administrator, in conjunction with State and local 
                governments, in developing maps for communities with 
                similar flood risks, as determined by the 
                Administrator; 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) aligned with official data defined by the 
                National Geodetic Survey.
    (d) Communication and Outreach.--
            (1) In general.--The Administrator shall--
                    (A) work to enhance communication and outreach to 
                States, local communities, and property owners about 
                the effects--
                            (i) of any potential changes to National 
                        Flood Insurance Program rate maps that may 
                        result from the mapping program required under 
                        this section; and
                            (ii) that any such changes may have on 
                        flood insurance purchase requirements; and
                    (B) engage with local communities to enhance 
                communication and outreach to the residents of such 
                communities on the matters described under subparagraph 
                (A).
            (2) Required activities.--The communication and outreach 
        activities required under paragraph (1) shall include--
                    (A) notifying property owners when their properties 
                become included in, or when they are excluded from, an 
                area covered by the mandatory flood insurance purchase 
                requirement under section 102 of the Flood Disaster 
                Protection Act of 1973 (42 U.S.C. 4012a);
                    (B) 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;
                    (C) 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;
                    (D) 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
                    (E) encouraging property owners to maintain or 
                acquire flood insurance coverage.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator to carry out this section 
$400,000,000 for each of fiscal years 2012 through 2016.

SEC. 119. SCOPE OF APPEALS.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended--
            (1) in subsection (a)--
                    (A) in the heading, by inserting ``and Designations 
                of Special Flood Hazard Areas'' after ``Elevation 
                Determinations'';
                    (B) by inserting ``and designating special flood 
                hazard areas'' after ``flood elevations''; and
                    (C) by striking ``such determinations'' and 
                inserting ``such determinations and designations''; and
            (2) in subsection (b)--
                    (A) in the heading, by inserting ``and Designations 
                of Special Flood Hazard Areas'' after ``Elevation 
                Determinations'';
                    (B) in the first sentence, by inserting ``and 
                designation of special flood hazard areas'' after 
                ``flood elevation determinations''; and
                    (C) by amending the third sentence to read as 
                follows: ``The sole grounds for appeal shall be the 
                possession of knowledge or information indicating that 
                (1) the elevations being proposed by the Administrator 
                with respect to an identified area having special flood 
                hazards are scientifically or technically incorrect, or 
                (2) the designation of an identified special flood 
                hazard area is scientifically or technically 
                incorrect.''

SEC. 120. SCIENTIFIC RESOLUTION PANEL.

    (a) Establishment.--The National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) is amended by inserting after section 1363 (42 
U.S.C. 4104) the following:

``SEC. 1363A. SCIENTIFIC RESOLUTION PANEL.

    ``(a) Availability.--
            ``(1) In general.--Pursuant to the authority provided under 
        section 1363(e), the Administrator shall make available an 
        independent review panel, to be known as the Scientific 
        Resolution Panel, to any community--
                    ``(A) that has--
                            ``(i) filed a timely map appeal in 
                        accordance with section 1363;
                            ``(ii) completed 60 days of consultation 
                        with the Federal Emergency Management Agency on 
                        the appeal; and
                            ``(iii) not allowed more than 120 days, or 
                        such longer period as may be provided by the 
                        Administrator by waiver, to pass since the end 
                        of the appeal period; or
                    ``(B) that has received an unsatisfactory ruling 
                under the map revision process established pursuant to 
                section 1360(f).
            ``(2) Appeals by owners and lessees.--If a community and an 
        owner or lessee of real property within the community appeal a 
        proposed determination of a flood elevation under section 
        1363(b), upon the request of the community--
                    ``(A) the owner or lessee shall submit scientific 
                and technical data relating to the appeals to the 
                Scientific Resolution Panel; and
                    ``(B) the Scientific Resolution Panel shall make a 
                determination with respect to the appeals in accordance 
                with subsection (c).
            ``(3) Definition.--For purposes of paragraph (1)(B), an 
        `unsatisfactory ruling' means that a community--
                    ``(A) received a revised Flood Insurance Rate Map 
                from the Federal Emergency Management Agency, via a 
                Letter of Final Determination, after September 30, 2008 
                and prior to the date of enactment of this section;
                    ``(B) has subsequently applied for a Letter of Map 
                Revision or Physical Map Revision with the Federal 
                Emergency Management Agency; and
                    ``(C) has received an unfavorable ruling on their 
                request for a map revision.
    ``(b) Membership.--The Scientific Resolution Panel made available 
under subsection (a) shall consist of 5 members with expertise that 
relate to the creation and study of flood hazard maps and flood 
insurance. The Scientific Resolution Panel may include representatives 
from Federal agencies not involved in the mapping study in question and 
from other impartial experts. Employees of the Federal Emergency 
Management Agency may not serve on the Scientific Resolution Panel.
    ``(c) Determination.--
            ``(1) In general.--Following deliberations, and not later 
        than 90 days after its formation, the Scientific Resolution 
        Panel shall issue a determination of resolution of the dispute. 
        Such determination shall set forth recommendations for the base 
        flood elevation determination or the determination of an area 
        having special flood hazards that shall be reflected in the 
        Flood Insurance Rate Maps.
            ``(2) Basis.--The determination of the Scientific 
        Resolution Panel shall be based on--
                    ``(A) data previously provided to the Administrator 
                by the community, and, in the case of a dispute 
                submitted under subsection (a)(2), an owner or lessee 
                of real property in the community; and
                    ``(B) data provided by the Administrator.
            ``(3) No alternative determinations permissible.--The 
        Scientific Resolution Panel--
                    ``(A) shall provide a determination of resolution 
                of a dispute that--
                            ``(i) is either in favor of the 
                        Administrator or in favor of the community on 
                        each distinct element of the dispute; or
                            ``(ii) in the case of a dispute submitted 
                        under subsection (a)(2), is in favor of the 
                        Administrator, in favor of the community, or in 
                        favor of the owner or lessee of real property 
                        in the community on each distinct element of 
                        the dispute; and
                    ``(B) may not offer as a resolution any other 
                alternative determination.
            ``(4) Effect of determination.--
                    ``(A) Binding.--The recommendations of the 
                Scientific Resolution Panel shall be binding on all 
                appellants and not subject to further judicial review 
                unless the Administrator determines that implementing 
                the determination of the panel would--
                            ``(i) pose a significant threat due to 
                        failure to identify a substantial risk of 
                        special flood hazards; or
                            ``(ii) violate applicable law.
                    ``(B) Written justification not to enforce.--If the 
                Administrator elects not to implement the determination 
                of the Scientific Resolution Panel pursuant to 
                subparagraph (A), then not later than 60 days after the 
                issuance of the determination, the Administrator shall 
                issue a written justification explaining such election.
                    ``(C) Appeal of determination not to enforce.--If 
                the Administrator elects not to implement the 
                determination of the Scientific Resolution Panel 
                pursuant to subparagraph (A), the community may appeal 
                the determination of the Administrator as provided for 
                under section 1363(g).
    ``(d) Maps Used for Insurance and Mandatory Purchase 
Requirements.--With respect to any community that has a dispute that is 
being considered by the Scientific Resolution Panel formed pursuant to 
this subsection, the Federal Emergency Management Agency shall ensure 
that for each such community that--
            ``(1) the Flood Insurance Rate Map described in the most 
        recently issued Letter of Final Determination shall be in force 
        and effect with respect to such community; and
            ``(2) flood insurance shall continue to be made available 
        to the property owners and residents of the participating 
        community.''.
    (b) Conforming Amendments.--
            (1) Administrative review.--Section 1363(e) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended by 
        striking ``an independent scientific body or appropriate 
        Federal agency for advice'' and inserting ``the Scientific 
        Resolution Panel provided for in section 1363A''.
            (2) Judicial review.--The first sentence of section 1363(g) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) 
        is amended by striking ``Any appellant'' and inserting ``Except 
        as provided in section 1363A, any appellant''.

SEC. 121. 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. 122. COORDINATION.

    (a) Interagency Budget Crosscut and Coordination Report.--
            (1) In general.--The Secretary of Homeland Security, the 
        Administrator, the Director of the Office of Management and 
        Budget, and the heads of each Federal department or agency 
        carrying out activities under sections 118 and 119 shall work 
        together to ensure that flood risk determination data and 
        geospatial data are shared among Federal agencies in order to 
        coordinate the efforts of the Nation to reduce its 
        vulnerability to flooding hazards.
            (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 Army 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 an interagency budget 
        crosscut and coordination report, certified by the Secretary or 
        head of each such agency, that--
                    (A) contains an interagency budget crosscut report 
                that displays relevant sections of the budget proposed 
                for each of the Federal agencies working on flood risk 
                determination data and digital elevation models, 
                including any planned interagency or intra-agency 
                transfers; and
                    (B) describes how the efforts aligned with such 
                sections complement one another.
    (b) Duties of the Administrator.--In carrying out sections 118 and 
119, the Administrator shall--
            (1) participate, pursuant to section 216 of the E-
        Government Act of 2002 (44 U.S.C. 3501 note), 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 a liaison to the Federal Geographic Data Committee 
        pursuant to the Office of Management and Budget Circular A-16 
        and Executive Order 12906 (43 U.S.C. 1457 note; relating to the 
        National Spatial Data Infrastructure) 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 maintain or establish joint 
        funding and other agreement mechanisms with other Federal 
        agencies and units of State and local government to share in 
        the collection and utilization of geospatial data among all 
        governmental users.

SEC. 123. INTERAGENCY COORDINATION STUDY.

    (a) In General.--The Administrator 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 the 
enactment of this title, the National Academy of Public Administration 
shall report the findings of the study required under subsection (a) 
to--
            (1) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate;
            (2) the Committee on Financial Services of the House of 
        Representatives;
            (3) the Committee on Appropriations of the Senate; and
            (4) the Committee on Appropriations of the House of 
        Representatives.

SEC. 124. 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 and 4106).
    (b) Notice.--
            (1) By administrator.--In carrying out the National Flood 
        Insurance Program, the Administrator 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 118.
            (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. 125. 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)), as amended by section 1450 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Public Law 111-203; 124 
Stat. 2174), is amended by adding at the end the following:
            ``(14) 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. 126. 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 (42 U.S.C. 
4020) 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 covered under the flood insurance program 
established under this chapter and other personal lines residential 
property insurance coverage offered by a State regulated insurer, upon 
a 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 Administrator in 
a program sponsored by such State for nonbinding mediation of insurance 
claims resulting from a major disaster, the Administrator 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 Administrator shall require that each 
representative of the Administrator--
            ``(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 Administrator 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 
Administrator 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 
                Administrator, 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 Administrator or a representative of the Administrator 
to pay additional mediation fees relating to flood insurance claims 
associated with a State-sponsored mediation program in which such 
representative of the Administrator 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 Administrator.--For purposes of this 
section, the term `representatives of the Administrator' 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. 127. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION ON CLAIMS 
              PAYMENTS.

    (a) In General.--The Administrator shall collect, from property and 
casualty insurance companies that are authorized by the Administrator 
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. 128. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

    (a) Submission of Biennial Reports.--
            (1) To the administrator.--Not later than 20 days after the 
        date of the enactment of this Act, each property and casualty 
        insurance company that is authorized by the Administrator to 
        participate in the Write Your Own program shall submit to the 
        Administrator any biennial report required by the Federal 
        Emergency Management Agency to be 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 Administrator 
        shall submit all such reports to the Comptroller General of the 
        United States.
            (3) Notice to congress of failure to comply.--The 
        Administrator 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).
            (4) Failure to comply.--A property and casualty insurance 
        company that is authorized by the Administrator to participate 
        in the Write Your Own program which fails to comply with the 
        reporting requirement under this subsection or the requirement 
        under section 62.23(j)(1) of title 44, Code of Federal 
        Regulations (relating to biennial audit of the flood insurance 
        financial statements) shall be subject to a civil penalty in an 
        amount equal to $1,000 per day for each day that the company 
        remains in noncompliance with either such requirement.
    (b) Methodology To Determine Reimbursed Expenses.--Not later than 
180 days after the date of the enactment of this Act, the Administrator 
shall develop a methodology for determining the appropriate amounts 
that participating property and casualty insurance companies should be 
reimbursed for selling, writing, and servicing flood insurance policies 
and adjusting flood insurance claims on behalf of the National Flood 
Insurance Program. The methodology shall be developed using actual 
expense data for the flood insurance line and can be derived from--
            (1) flood insurance expense data produced by participating 
        property and casualty insurance companies;
            (2) flood insurance expense data collected by the National 
        Association of Insurance Commissioners; or
            (3) a combination of the methodologies described in 
        paragraphs (1) and (2).
    (c) Submission of Expense Reports.--To develop the methodology 
established under subsection (b), the Administrator may require each 
property and casualty insurance company participating in the Write Your 
Own program to submit a report to the Administrator, in a format 
determined by the Administrator and within 60 days of the request, that 
details the expense levels of each such company for selling, writing, 
and servicing standard flood insurance policies and adjusting and 
servicing claims.
    (d) FEMA Rulemaking on Reimbursement of Expenses Under the WYO 
Program.--Not later than 12 months after the date of the enactment of 
this Act, the Administrator 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 noncatastrophic 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 Administrator.--Not later than 60 days after the 
effective date of any final rule established pursuant to subsection 
(d), the Administrator 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 
                subsection (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 
                        subsection (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. 129. MITIGATION.

    (a) Mitigation Assistance Grants.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) by striking subsections (b), (d), (f), (g), (h), (k), 
        and (m);
            (2) by redesignating subsections (c), (e), (i), and (j) as 
        subsections (b), (c), (e), and (f), respectively;
            (3) in subsection (a), by striking the last sentence and 
        inserting the following: ``Such financial assistance shall be 
        made available--
            ``(1) to States and communities in the form of grants under 
        this section for carrying out mitigation activities;
            ``(2) to States and communities in the form of grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to severe repetitive loss structures; and
            ``(3) to property owners in the form of direct grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to individual structures for which 2 or more claim 
        payments for losses have been made under flood insurance 
        coverage under this title if the Administrator, after 
        consultation with the State and community, determines that 
        neither the State nor community in which such a structure is 
        located has the capacity to manage such grants.'';
            (4) in subsection (b), as so redesignated, in the first 
        sentence--
                    (A) by striking ``and provides protection against'' 
                and inserting ``provides for reduction of''; and
                    (B) by inserting before the period at the end the 
                following: ``, and may be included in a multi-hazard 
                mitigation plan'';
            (5) in subsection (c), as so redesignated--
                    (A) in paragraph (1), by striking ``(1) Use of 
                amounts.--'' and all that follows through the end of 
                the first sentence and inserting the following:
            ``(1) Requirement of consistency with approved mitigation 
        plan.--Amounts provided under this section may be used only for 
        mitigation activities that are consistent with mitigation plans 
        that are approved by the Administrator and identified under 
        paragraph (4).'';
                    (B) by striking paragraphs (2), (3), and (4) and 
                inserting the following new paragraphs:
            ``(2) Requirements of technical feasibility, cost 
        effectiveness, and interest of nfif.--The Administrator may 
        approve only mitigation activities that the Administrator 
        determines are technically feasible and cost-effective and in 
        the interest of, and represent savings to, the National Flood 
        Insurance Fund. In making such determinations, the 
        Administrator shall take into consideration recognized 
        ancillary benefits.
            ``(3) Priority for mitigation assistance.--In providing 
        grants under this section for mitigation activities, the 
        Administrator shall give priority for funding to activities 
        that the Administrator determines will result in the greatest 
        savings to the National Flood Insurance Fund, including 
        activities for--
                    ``(A) severe repetitive loss structures;
                    ``(B) repetitive loss structures; and
                    ``(C) other subsets of structures as the 
                Administrator may establish.'';
                    (C) by redesignating paragraph (5) as paragraph 
                (4);
                    (D) in paragraph (4), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``The Director'' and all that 
                        follows through ``Such activities may'' and 
                        inserting ``Eligible activities under a 
                        mitigation plan may'';
                            (ii) by striking subparagraphs (E) and (H);
                            (iii) by redesignating subparagraphs (D), 
                        (F), and (G) as subparagraphs (E), (G), and 
                        (H), respectively;
                            (iv) by inserting after subparagraph (C) 
                        the following new subparagraph:
                    ``(D) elevation, relocation, or floodproofing of 
                utilities (including equipment that serve 
                structures);'';
                            (v) by inserting after subparagraph (E), as 
                        so redesignated, the following new 
                        subparagraph:
                    ``(F) the development or update of mitigation plans 
                by a State or community which meet the planning 
                criteria established by the Administrator, except that 
                the amount from grants under this section that may be 
                used under this subparagraph may not exceed $50,000 for 
                any mitigation plan of a State or $25,000 for any 
                mitigation plan of a community;'';
                            (vi) in subparagraph (H); as so 
                        redesignated, by striking ``and'' at the end; 
                        and
                            (vii) by adding at the end the following 
                        new subparagraphs:
                    ``(I) other mitigation activities not described in 
                subparagraphs (A) through (G) or the regulations issued 
                under subparagraph (H), that are described in the 
                mitigation plan of a State or community; and
                    ``(J) without regard to the requirements under 
                subsections (d)(1) and (d)(2), and if the State applied 
                for and was awarded at least $1,000,000 in grants 
                available under this section in the prior fiscal year, 
                technical assistance to communities to identify 
                eligible activities, to develop grant applications, and 
                to implement grants awarded under this section, not to 
                exceed $50,000 to any one State in any fiscal year.'';
                    (E) by adding at the end the following new 
                paragraph:
            ``(5) Eligibility of demolition and rebuilding of 
        properties.--The Administrator shall consider as an eligible 
        activity the demolition and rebuilding of properties to at 
        least base flood elevation or greater, if required by the 
        Administrator or if required by any State regulation or local 
        ordinance, and in accordance with criteria established by the 
        Administrator.''; and
            (6) by inserting after subsection (c), as so redesignated, 
        the following new subsection:
    ``(d) Matching Requirement.--The Administrator may provide grants 
for eligible mitigation activities as follows:
            ``(1) Severe repetitive loss structures.--In the case of 
        mitigation activities to severe repetitive loss structures, in 
        an amount up to 100 percent of all eligible costs.
            ``(2) Repetitive loss structures.--In the case of 
        mitigation activities to repetitive loss structures, in an 
        amount up to 90 percent of all eligible costs.
            ``(3) Other mitigation activities.--In the case of all 
        other mitigation activities, in an amount up to 75 percent of 
        all eligible costs.'';
            (7) in subsection (e)(2), as so redesignated--
                    (A) by striking ``certified under subsection (g)'' 
                and inserting ``required under subsection (d)''; and
                    (B) by striking ``3 times the amount'' and 
                inserting ``the amount'';
            (8) in subsection (f)(1), as so redesignated, by striking 
        ``Riegle Community Development and Regulatory Improvement Act 
        of 1994'' and inserting ``Flood Insurance Reform and 
        Modernization Act of 2011''; and
            (9) by adding at the end the following new subsections:
    ``(g) Failure To Make Grant Award Within 5 Years.--For any 
application for a grant under this section for which the Administrator 
fails to make a grant award within 5 years of the date of the 
application, the grant application shall be considered to be denied and 
any funding amounts allocated for such grant applications shall remain 
in the National Flood Mitigation Fund under section 1367 of this title 
and shall be made available for grants under this section.
    ``(h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Community.--The term `community' means--
                    ``(A) a political subdivision that--
                            ``(i) has zoning and building code 
                        jurisdiction over a particular area having 
                        special flood hazards; and
                            ``(ii) is participating in the national 
                        flood insurance program; or
                    ``(B) a political subdivision of a State, or other 
                authority, that is designated by political 
                subdivisions, all of which meet the requirements of 
                subparagraph (A), to administer grants for mitigation 
                activities for such political subdivisions.
            ``(2) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given such term in section 1370.
            ``(3) Severe repetitive loss structure.--The term `severe 
        repetitive loss structure' means a structure that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                            ``(i) for which 4 or more separate claims 
                        payments have been made under flood insurance 
                        coverage under this title, with the amount of 
                        each such claim exceeding $5,000, and with the 
                        cumulative amount of such claims payments 
                        exceeding $20,000; or
                            ``(ii) for which at least 2 separate claims 
                        payments have been made under such coverage, 
                        with the cumulative amount of such claims 
                        exceeding the value of the insured 
                        structure.''.
    (b) Elimination of Grants Program for Repetitive Insurance Claims 
Properties.--Chapter I of the National Flood Insurance Act of 1968 is 
amended by striking section 1323 (42 U.S.C. 4030).
    (c) Elimination of Pilot Program for Mitigation of Severe 
Repetitive Loss Properties.--Chapter III of the National Flood 
Insurance Act of 1968 is amended by striking section 1361A (42 U.S.C. 
4102a).
    (d) National Flood Insurance Fund.--Section 1310(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (6), by inserting ``and'' after the 
        semicolon;
            (2) in paragraph (7), by striking the semicolon and 
        inserting a period; and
            (3) by striking paragraphs (8) and (9).
    (e) National Flood Mitigation Fund.--Section 1367 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) in each fiscal year, amounts from the National Flood 
        Insurance Fund not to exceed $90,000,000 and to remain 
        available until expended, of which--
                    ``(A) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(1);
                    ``(B) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(2); and
                    ``(C) not more than $10,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(3);''; and
                    (B) in paragraph (3), by striking ``section 
                1366(i)'' and inserting ``section 1366(e)'';
            (2) in subsection (c), by striking ``sections 1366 and 
        1323'' and inserting ``section 1366'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Prohibition on Offsetting Collections.--Notwithstanding any 
other provision of this title, amounts made available pursuant to this 
section shall not be subject to offsetting collections through premium 
rates for flood insurance coverage under this title.
    ``(e) Continued Availability and Reallocation.--Any amounts made 
available pursuant to subparagraph (A), (B), or (C) of subsection 
(b)(1) that are not used in any fiscal year shall continue to be 
available for the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made available, unless the 
Administrator determines that reallocation of such unused amounts to 
meet demonstrated need for other mitigation activities under section 
1366 is in the best interest of the National Flood Insurance Fund.''.
    (f) Increased Cost of Compliance Coverage.--Section 1304(b)(4) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D), respectively.

SEC. 130. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK FORCE.

    (a) Definitions.--In this section--
            (1) the term ``flood protection structure accreditation 
        requirements'' means the requirements established under section 
        65.10 of title 44, Code of Federal Regulations, for levee 
        systems to be recognized on maps created for purposes of the 
        National Flood Insurance Program;
            (2) the term ``National Committee on Levee Safety'' means 
        the Committee on Levee Safety established under section 9003 of 
        the National Levee Safety Act of 2007 (33 U.S.C. 3302); and
            (3) the term ``task force'' means the Flood Protection 
        Structure Accreditation Task Force established under subsection 
        (b).
    (b) Establishment.--
            (1) In general.--The Administrator and the Secretary of the 
        Army, acting through the Chief of Engineers, in cooperation 
        with the National Committee on Levee Safety, shall jointly 
        establish a Flood Protection Structure Accreditation Task 
        Force.
            (2) Duties.--
                    (A) Developing process.--The task force shall 
                develop a process to better align the information and 
                data collected by or for the United States Army Corps 
                of Engineers under the Inspection of Completed Works 
                Program with the flood protection structure 
                accreditation requirements so that--
                            (i) information and data collected for 
                        either purpose can be used interchangeably; and
                            (ii) information and data collected by or 
                        for the United States Army Corps of Engineers 
                        under the Inspection of Completed Works Program 
                        is sufficient to satisfy the flood protection 
                        structure accreditation requirements.
                    (B) Gathering recommendations.--The task force 
                shall gather, and consider in the process developed 
                under subparagraph (A), recommendations from interested 
                persons in each region relating to the information, 
                data, and accreditation requirements described in 
                subparagraph (A).
            (3) Considerations.--In developing the process under 
        paragraph (2), the task force shall consider changes to--
                    (A) the information and data collected by or for 
                the United States Army Corps of Engineers under the 
                Inspection of Completed Works Program; and
                    (B) the flood protection structure accreditation 
                requirements.
            (4) Rule of construction.--Nothing in this section shall be 
        construed to require a reduction in the level of public safety 
        and flood control provided by accredited levees, as determined 
        by the Administrator for purposes of this section.
    (c) Implementation.--The Administrator and the Secretary of the 
Army, acting through the Chief of Engineers, shall implement the 
process developed by the task force under subsection (b).
    (d) Reports.--The Administrator and the Secretary of the Army, 
acting through the Chief of Engineers, in cooperation with the National 
Committee on Levee Safety, shall jointly submit to the Committee on 
Banking, Housing, and Urban Affairs and the Committee on Environment 
and Public Works of the Senate and the Committee on Financial Services, 
the Committee on Transportation and Infrastructure, and the Committee 
on Natural Resources of the House of Representatives reports concerning 
the activities of the task force and the implementation of the process 
developed by the task force under subsection (b), including--
            (1) an interim report, not later than 180 days after the 
        date of enactment of this Act; and
            (2) a final report, not later than 1 year after the date of 
        enactment of this Act.
    (e) Termination.--The task force shall terminate on the date of 
submission of the report under subsection (d)(2).

SEC. 131. FLOOD IN PROGRESS DETERMINATIONS.

    (a) Report.--
            (1) Review.--The Administrator shall review--
                    (A) the processes and procedures for determining 
                that a flood event has commenced or is in progress for 
                purposes of flood insurance coverage made available 
                under the National Flood Insurance Program;
                    (B) the processes and procedures for providing 
                public notification that such a flood event has 
                commenced or is in progress;
                    (C) the processes and procedures regarding the 
                timing of public notification of flood insurance 
                requirements and availability; and
                    (D) the effects and implications that weather 
                conditions, including rainfall, snowfall, projected 
                snowmelt, existing water levels, and other conditions, 
                have on the determination that a flood event has 
                commenced or is in progress.
            (2) Report.--Not later than 6 months after the date of 
        enactment of this Act, the Administrator shall submit a report 
        to Congress that describes--
                    (A) the results and conclusions of the review under 
                paragraph (1); and
                    (B) any actions taken, or proposed actions to be 
                taken, by the Administrator to provide for more precise 
                and technical processes and procedures for determining 
                that a flood event has commenced or is in progress.
    (b) Effective Date of Policies Covering Properties Affected by 
Flooding of the Missouri River in 2011.--
            (1) Eligible coverage.--For purposes of this subsection, 
        the term ``eligible coverage'' means coverage under a new 
        contract for flood insurance coverage under the National Flood 
        Insurance Program, or a modification to coverage under an 
        existing flood insurance contract, for property damaged by the 
        flooding of the Missouri River that commenced on June 1, 2011, 
        that was purchased or made during the period beginning May 1, 
        2011, and ending June 6, 2011.
            (2) Effective dates.--Notwithstanding section 1306(c) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), 
        or any other provision of law, any eligible coverage shall--
                    (A) be deemed to take effect on the date that is 30 
                days after the date on which all obligations for the 
                eligible coverage (including completion of the 
                application and payment of any initial premiums owed) 
                are satisfactorily completed; and
                    (B) cover damage to property occurring after the 
                effective date described in subparagraph (A) that 
                resulted from the flooding of the Missouri River that 
                commenced on June 1, 2011, if the property did not 
                suffer damage or loss as a result of such flooding 
                before the effective date described in subparagraph 
                (A).

SEC. 132. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE LIMITS.

    Section 1306(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4013(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``in the case of any residential 
                property'' and inserting ``in the case of any 
                residential building designed for the occupancy of from 
                one to four families''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance 
                so as to enable such insured or applicant to receive 
                coverage up to a total amount (including such limits 
                specified in paragraph (1)(A)(i)) of $250,000'' and 
                inserting ``shall be made available, with respect to 
                any single such building, up to an aggregate liability 
                (including such limits specified in paragraph 
                (1)(A)(i)) of $250,000''; and
            (2) in paragraph (4)--
                    (A) by striking ``in the case of any nonresidential 
                property, including churches,'' and inserting ``in the 
                case of any nonresidential building, including a 
                church,''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance, 
                in respect to any single structure, up to a total 
                amount (including such limit specified in subparagraph 
                (B) or (C) of paragraph (1), as applicable) of $500,000 
                for each structure and $500,000 for any contents 
                related to each structure'' and inserting ``shall be 
                made available with respect to any single such 
                building, up to an aggregate liability (including such 
                limits specified in subparagraph (B) or (C) of 
                paragraph (1), as applicable) of $500,000, and coverage 
                shall be made available up to a total of $500,000 
                aggregate liability for contents owned by the building 
                owner and $500,000 aggregate liability for each unit 
                within the building for contents owned by the tenant''.

SEC. 133. LOCAL DATA REQUIREMENT.

    (a) In General.--Notwithstanding any other provision of this title, 
no area or community participating in the National Flood Insurance 
Program that is or includes a community that is identified by the 
Administrator as Community Identification Number 360467 and impacted by 
the Jamaica Bay flooding source or identified by the Administrator as 
Community Identification Number 360495 may be or become designated as 
an area of special flood hazards for purposes of the National Flood 
Insurance Program, unless the designation is made on the basis of--
            (1) flood hazard analyses of hydrologic, hydraulic, or 
        coastal flood hazards that have been properly calibrated and 
        validated, and are specific and directly relevant to the 
        geographic area being studied; and
            (2) ground elevation information of sufficient accuracy and 
        precision to meet the guidelines of the Administration for 
        accuracy at the 95 percent confidence level.
    (b) Remapping.--
            (1) Remapping required.--If the Administrator determines 
        that an area described in subsection (a) has been designated as 
        an area of special flood hazard on the basis of information 
        that does not comply with the requirements under subsection 
        (a), the Administrator shall revise and update any National 
        Flood Insurance Program rate map for the area--
                    (A) using information that complies with the 
                requirements under subsection (a); and
                    (B) in accordance with the procedures established 
                under section 1363 of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4104) for flood elevation 
                determinations.
            (2) Deadline.--The Administrator shall issue a preliminary 
        National Flood Insurance Program rate map resulting from a 
        revision and update required under paragraph (1) not later than 
        1 year after the date of enactment of this Act.
            (3) Risk premium rate clarification.--Any increase in the 
        risk premium rate for a property in an area for which the 
        Administrator has made a determination under paragraph (1) 
        shall be phased in, in accordance with the schedule set forth 
        under section 1308(h) of the National Flood Insurance Act of 
        1968 (42 U.S.C. 4015(h)), as added by this Act. The provisions 
        of this paragraph terminate on the effective date of the 
        National Flood Insurance Program rate map for the area revised 
        and updated in accordance with paragraph (1).

SEC. 134. ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS RESIDING IN 
              COMMUNITIES THAT HAVE MADE ADEQUATE PROGRESS ON THE 
              CONSTRUCTION, RECONSTRUCTION, OR IMPROVEMENT OF A FLOOD 
              PROTECTION SYSTEM.

    (a) Eligibility for Flood Insurance Coverage.--
            (1) In general.--Notwithstanding any other provision of 
        law, a person residing in a community that the Administrator 
        determines has made adequate progress on the reconstruction or 
        improvement of a flood protection system that will afford flood 
        protection for a 100-year floodplain (without regard to the 
        level of Federal funding of or participation in the 
        construction, reconstruction, or improvement), shall be 
        eligible for flood insurance coverage under the National Flood 
        Insurance Program--
                    (A) if the person resides in a community that is a 
                participant in the National Flood Insurance Program; 
                and
                    (B) at a risk premium rate that does not exceed the 
                risk premium rate that would be chargeable if the flood 
                protection system had been completed.
            (2) Adequate progress.--
                    (A) Reconstruction or improvement.--For purposes of 
                paragraph (1), the Administrator shall determine that a 
                community has made adequate progress on the 
                reconstruction or improvement of a flood protection 
                system if--
                            (i) 100 percent of the project cost has 
                        been authorized;
                            (ii) not less than 60 percent of the 
                        project cost has been secured or appropriated;
                            (iii) not less than 50 percent of the flood 
                        protection system has been assessed as being 
                        without deficiencies; and
                            (iv) the reconstruction or improvement has 
                        a project schedule that does not exceed 5 
                        years, beginning on the date on which the 
                        reconstruction or construction of the 
                        improvement commences.
                    (B) Considerations.--In determining whether a flood 
                protection system have been assessed as being without 
                deficiencies, the Administrator shall consider the 
                requirements under section 65.10 of chapter 44, Code of 
                Federal Regulations, or any successor thereto.
    (b) Termination of Eligibility.--
            (1) Adequate continuing progress.--The Administrator shall 
        issue rules to establish a method of determining whether a 
        community has made adequate continuing progress on the 
        reconstruction or improvement of a flood protection system that 
        includes--
                    (A) a requirement that the Administrator shall--
                            (i) consult with the owner of the flood 
                        protection system--
                                    (I) 6 months after the date of a 
                                determination under subsection (a);
                                    (II) 18 months after the date of a 
                                determination under subsection (a); and
                                    (III) 36 months after the date of a 
                                determination under subsection (a); and
                            (ii) after each consultation under clause 
                        (i), determine whether the reconstruction or 
                        improvement is reasonably likely to be 
                        completed in accordance with the project 
                        schedule described in subsection (a)(2)(A)(iv); 
                        and
                    (B) a requirement that, if the Administrator makes 
                a determination under subparagraph (A)(ii) that 
                reconstruction or improvement is not reasonably likely 
                to be completed in accordance with the project 
                schedule, the Administrator shall--
                            (i) not later than 30 days after the date 
                        of the determination, notify the owner of the 
                        flood protection system of the determination 
                        and provide the rationale and evidence for the 
                        determination; and
                            (ii) provide the owner of the flood 
                        protection system the opportunity to appeal the 
                        determination.
            (2) Termination.--The Administrator shall terminate the 
        eligibility for flood insurance coverage under the National 
        Flood Insurance Program of persons residing in a community with 
        respect to which the Administrator made a determination under 
        subsection (a) if--
                    (A) the Administrator determines that the community 
                has not made adequate continuing progress; or
                    (B) on the date that is 5 years after the date on 
                which the reconstruction or construction of the 
                improvement commences, the project has not been 
                completed.
            (3) Waiver.--A person whose eligibility would otherwise be 
        terminated under paragraph (2)(B) shall continue to be eligible 
        to purchase flood insurance coverage described in subsection 
        (a) if the Administrator determines--
                    (A) the community has made adequate continuing 
                progress on the reconstruction or improvement of a 
                flood protection system; and
                    (B) there is a reasonable expectation that the 
                reconstruction or improvement of the flood protection 
                system will be completed not later than 1 year after 
                the date of the determination under this paragraph.
            (4) Risk premium rate.--If the Administrator terminates the 
        eligibility of persons residing in a community to purchase 
        flood insurance coverage described in subsection (a), the 
        Administrator shall establish an appropriate risk premium rate 
        for flood insurance coverage under the National Flood Insurance 
        Program for persons residing in the community that purchased 
        flood insurance coverage before the date on which the 
        termination of eligibility takes effect, taking into 
        consideration the then-current state of the flood protection 
        system.

SEC. 135. 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 Administrator on Activities Under the National 
Flood Insurance Program.--
            (1) In general.--The Administrator 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 Administrator 
                for mitigation assistance under section 1366(c)(4) of 
                the National Flood Insurance Act of 1968 (42 U.S.C. 
                4104c(c)(4) 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 Administrator as to the 
                average historical loss year, and the basis for that 
                estimate;
                    (G) the estimate of the Administrator 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. 
        4014), including the historical basis for the receipt of such 
        subsidy and the extent to which pre-FIRM structures are 
        currently owned by the same owners of the property at the time 
        of the original FIRM;
            (2) number and fair market value of such structures;
            (3) respective income level of the owners of such 
        structures;
            (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 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 a result 
        of structures that are charged a nondiscounted premium rate, on 
        a State-by-State basis; and
            (9) the options for eliminating the subsidy to such 
        structures.
    (d) GAO Review of FEMA Contractors.--The Comptroller General of the 
United States, in conjunction with the Office of the Inspector General 
of the Department of Homeland Security, shall--
            (1) conduct a review of the 3 largest contractors the 
        Administrator uses in administering the National Flood 
        Insurance Program; and
            (2) not later than 18 months after the date of the 
        enactment of this Act, submit a report on the findings of such 
        review to the Administrator, the Committee on Banking, Housing, 
        and Urban Affairs of the Senate, and the Committee on Financial 
        Services of the House of Representatives.

SEC. 136. REINSURANCE.

    (a) Reinsurance Assessment.--
            (1) Private market pricing assessment.--Not later than 12 
        months after the date of the enactment of this Act, the 
        Administrator shall submit to Congress a report that--
                    (A) assesses the capacity of the private 
                reinsurance, capital, and financial markets to assist 
                communities, on a voluntary basis, in managing the full 
                range of financial risks associated with flooding by 
                requesting proposals to assume a portion of the 
                insurance risk of the National Flood Insurance Program;
                    (B) describes any responses to the request for 
                proposals under subparagraph (A);
                    (C) assesses whether the rates and terms contained 
                in any proposals received by the Administrator are--
                            (i) reasonable and appropriate; and
                            (ii) in an amount sufficient to maintain 
                        the ability of the National Flood Insurance 
                        Program to pay claims;
                    (D) describes the extent to which carrying out the 
                proposals received by the Administrator would minimize 
                the likelihood that the Administrator would use the 
                borrowing authority under section 1309 of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4016);
                    (E) describes fluctuations in historical 
                reinsurance rates; and
                    (F) includes an economic cost-benefit analysis of 
                the impact on the National Flood Insurance Program if 
                the Administrator were to exercise the authority under 
                section 1335(a)(2) of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4055(a)(2)), as added by this 
                section, to secure reinsurance of coverage provided by 
                the National Flood Insurance Program from the private 
                market.
            (2) Protocol for release of data.--The Administrator shall 
        develop a protocol, including adequate privacy protections, to 
        provide for the release of data sufficient to conduct the 
        assessment required under paragraph (1).
    (b) Reinsurance.--The National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) is amended--
            (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
        inserting ``, including as reinsurance of 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 striking ``The Director'' and inserting the 
                following:
            ``(1) In general.--The Administrator''; and
                    (B) by adding at the end the following:
            ``(2) Private reinsurance.--The Administrator is authorized 
        to secure reinsurance of coverage provided by the flood 
        insurance program from the private market at rates and on terms 
        determined by the Administrator to be reasonable and 
        appropriate, in an amount sufficient to maintain the ability of 
        the program to pay claims.'';
            (4) in section 1346(a) (12 U.S.C. 4082(a))--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``for the purpose of'' the following: 
                ``securing reinsurance of insurance coverage provided 
                by the program or for the purpose 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) (ii) by striking ```; and''' and 
                        inserting a period;
                    (E) by redesignating paragraph (4) as paragraph 
                (5);
                    (F) in paragraph (5), as so redesignated, by 
                striking ``otherwise'' and inserting ``Otherwise''; and
                    (G) 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 
        striking ``include any'' and all that follows and inserting the 
        following: ``include any organization or person that is 
        authorized to engage in the business of insurance under the 
        laws of any State, 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) and 78o(d)), or authorized 
        by the Administrator to assume reinsurance on risks insured by 
        the flood insurance program;''.
    (c) Assessment of Claims-paying Ability.--
            (1) Assessment.--
                    (A) Assessment required.--
                            (i) In general.--Not later than September 
                        30 of each year, the Administrator shall 
                        conduct an assessment of the ability of the 
                        National Flood Insurance Program to pay claims.
                            (ii) Private market reinsurance.--The 
                        assessment under this paragraph for any year in 
                        which the Administrator exercises the authority 
                        under section 1335(a)(2) of the National Flood 
                        Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), 
                        as added by this section, to secure reinsurance 
                        of coverage provided by the National Flood 
                        Insurance Program from the private market shall 
                        include information relating the use of private 
                        sector reinsurance and reinsurance equivalents 
                        by the Administrator, whether or not the 
                        Administrator used the borrowing authority 
                        under section 1309 of the National Flood 
                        Insurance Act of 1968 (42 U.S.C. 4016).
                            (iii) First assessment.--The Administrator 
                        shall conduct the first assessment required 
                        under this paragraph not later than September 
                        30, 2012.
                    (B) Considerations.--In conducting an assessment 
                under subparagraph (A), the Administrator shall take 
                into consideration regional concentrations of coverage 
                written by the National Flood Insurance Program, peak 
                flood zones, and relevant mitigation measures.
            (2) Annual report of the administrator of activities under 
        the national flood insurance program.--The Administrator 
        shall--
                    (A) include the results of each assessment in the 
                report required under section 135(b); and
                    (B) not later than 30 days after the date on which 
                the Administrator completes an assessment required 
                under paragraph (1), make the results of the assessment 
                available to the public.

SEC. 137. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL LIVING 
              EXPENSES COVERAGES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study concerning--
            (1) the availability of additional living expenses and 
        business interruption coverage in the private marketplace for 
        flood insurance;
            (2) the feasibility of allowing the National Flood 
        Insurance Program to offer such coverage at the option of the 
        consumer;
            (3) the estimated cost to consumers if the National Flood 
        Insurance Program priced such optional coverage at true 
        actuarial rates;
            (4) the impact such optional coverage would have on 
        consumer participation in the National Flood Insurance Program; 
        and
            (5) the fiscal impact such optional coverage would have 
        upon the National Flood Insurance Fund if such optional 
        coverage were included in the National Flood Insurance Program, 
        as described in paragraph (2), at the price described in 
        paragraph (3).
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General 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 
the results of the study under subsection (a).

SEC. 138. POLICY DISCLOSURES.

    (a) In General.--Notwithstanding any other provision of law, in 
addition to any other disclosures that may be required, each policy 
under the National Flood Insurance Program shall state all conditions, 
exclusions, and other limitations pertaining to coverage under the 
subject policy, regardless of the underlying insurance product, in 
plain English, in boldface type, and in a font size that is twice the 
size of the text of the body of the policy.
    (b) Violations.--Any person that violates the requirements of this 
section shall be subject to a fine of not more than $50,000 at the 
discretion of the Administrator.

SEC. 139. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
              MANAGEMENT CRITERIA.

    Not later than 6 months after the date of the enactment of this 
Act, the Administrator of the Federal Emergency Management Agency 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 regarding the impact, 
effectiveness, and feasibility of amending section 1361 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102) to include widely used and 
nationally recognized building codes as part of the floodplain 
management criteria developed under such section, and shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities 
        to administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement 
        in reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction;
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building codes or any applicable 
        local building codes provides greater protection from flood 
        damage;
            (7) the impact of such a building code requirement on rural 
        communities with different building code challenges than urban 
        communities; and
            (8) the impact of a such a building code requirement on 
        Indian reservations.

SEC. 140. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CERTAIN 
              POLICYHOLDERS.

    (a) FEMA Study.--The Administrator shall conduct a study of--
            (1) methods to encourage and maintain participation in the 
        National Flood Insurance Program;
            (2) methods to educate consumers about the National Flood 
        Insurance Program and the flood risk associated with their 
        property;
            (3) methods for establishing an affordability framework for 
        the National Flood Insurance Program, including methods to aid 
        individuals to afford risk-based premiums under the National 
        Flood Insurance Program through targeted assistance rather than 
        generally subsidized rates, including means-tested vouchers; 
        and
            (4) the implications for the National Flood Insurance 
        Program and the Federal budget of using each such method.
    (b) National Academy of Sciences Economic Analysis.--To inform the 
Administrator in the conduct of the study under subsection (a), the 
National Academy of Sciences, in consultation with the Comptroller 
General of the United States, shall conduct and submit to the 
Administrator an economic analysis of the costs and benefits to the 
Federal Government of a flood insurance program with full risk-based 
premiums, combined with means-tested Federal assistance to aid 
individuals who cannot afford coverage, through an insurance voucher 
program. The analysis shall compare the costs of a program of risk-
based rates and means-tested assistance to the current system of 
subsidized flood insurance rates and federally funded disaster relief 
for people without coverage.
    (c) Report.--Not later than 270 days after the date of enactment of 
this Act, the Administrator 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 that contains the 
results of the study and analysis under this section.
    (d) Funding.--Notwithstanding section 1310 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017), there shall be available to the 
Administrator from the National Flood Insurance Fund, of amounts not 
otherwise obligated, not more than $750,000 to carry out this section.

SEC. 141. STUDY AND REPORT CONCERNING THE PARTICIPATION OF INDIAN 
              TRIBES AND MEMBERS OF INDIAN TRIBES IN THE NATIONAL FLOOD 
              INSURANCE PROGRAM.

    (a) Definition.--In this section, the term ``Indian tribe'' has the 
meaning given that term in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b).
    (b) Findings.--Congress finds that participation by Indian tribes 
in the National Flood Insurance Program is low. Only 45 of 565 Indian 
tribes participate in the National Flood Insurance Program.
    (c) Study.--The Comptroller General of the United States, in 
coordination and consultation with Indian tribes and members of Indian 
tribes throughout the United States, shall carry out a study that 
examines--
            (1) the factors contributing to the current rates of 
        participation by Indian tribes and members of Indian tribes in 
        the National Flood Insurance Program; and
            (2) methods of encouraging participation by Indian tribes 
        and members of Indian tribes in the National Flood Insurance 
        Program.
    (d) Report.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General shall submit to Congress a report 
that--
            (1) contains the results of the study carried out under 
        subsection (c);
            (2) describes the steps that the Administrator should take 
        to increase awareness and encourage participation by Indian 
        tribes and members of Indian tribes in the National Flood 
        Insurance Program; and
            (3) identifies any legislative changes that would encourage 
        participation by Indian tribes and members of Indian tribes in 
        the National Flood Insurance Program.

SEC. 142. TECHNICAL CORRECTIONS.

    (a) Flood Disaster Protection Act of 1973.--The Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended--
            (1) by striking ``Director'' each place that term appears, 
        except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and 
        inserting ``Administrator''; and
            (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
        ``Director's'' and inserting ``Administrator's''.
    (b) National Flood Insurance Act of 1968.--The National Flood 
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
            (1) by striking ``Director'' each place that term appears 
        and inserting ``Administrator''; and
            (2) in sections 1363 (42 U.S.C. 4104), by striking 
        ``Director's'' each place that term appears and inserting 
        ``Administrator's''.
    (c) Federal Flood Insurance Act of 1956.--Section 15(e) of the 
Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended by 
striking ``Director'' each place that term appears and inserting 
``Administrator''.

    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Commission on Natural Catastrophe 
Risk Management and Insurance Act of 2011''.

SEC. 202. FINDINGS.

    Congress finds that--
            (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
        United States in 2005, caused, by some estimates, in excess of 
        $200,000,000,000 in total economic losses;
            (2) many meteorologists predict that the United States is 
        in a period of increased hurricane activity;
            (3) the Federal Government and State governments have 
        provided billions of dollars to pay for losses from natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (4) many Americans are finding it increasingly difficult to 
        obtain and afford property and casualty insurance coverage;
            (5) some insurers are not renewing insurance policies, are 
        excluding certain risks, such as wind damage, and are 
        increasing rates and deductibles in some markets;
            (6) the inability of property and business owners in 
        vulnerable areas to obtain and afford property and casualty 
        insurance coverage endangers the national economy and public 
        health and safety;
            (7) almost every State in the United States is at risk of a 
        natural catastrophe, including hurricanes, earthquakes, 
        volcanic eruptions, tsunamis, tornados, flooding, wildfires, 
        droughts, and other natural catastrophes;
            (8) building codes and land use regulations play an 
        indispensable role in managing catastrophe risks, by preventing 
        building in high risk areas and ensuring that appropriate 
        mitigation efforts are completed where building has taken 
        place;
            (9) several proposals have been introduced in Congress to 
        address the affordability and availability of natural 
        catastrophe insurance across the United States, but there is no 
        consensus on what, if any, role the Federal Government should 
        play; and
            (10) an efficient and effective approach to assessing 
        natural catastrophe risk management and insurance is to 
        establish a nonpartisan commission to study the management of 
        natural catastrophe risk, and to require such commission to 
        timely report to Congress on its findings.

SEC. 203. ESTABLISHMENT.

    There is established a nonpartisan Commission on Natural 
Catastrophe Risk Management and Insurance (in this title referred to as 
the ``Commission'').

SEC. 204. MEMBERSHIP.

    (a) Appointment.--The Commission shall be composed of 16 members, 
of whom--
            (1) 2 members shall be appointed by the majority leader of 
        the Senate;
            (2) 2 members shall be appointed by the minority leader of 
        the Senate;
            (3) 2 members shall be appointed by the Speaker of the 
        House of Representatives;
            (4) 2 members shall be appointed by the minority leader of 
        the House of Representatives;
            (5) 2 members shall be appointed by the Chairman of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
            (6) 2 members shall be appointed by the Ranking Member of 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate;
            (7) 2 members shall be appointed by the Chairman of the 
        Committee on Financial Services of the House of 
        Representatives; and
            (8) 2 members shall be appointed by the Ranking Member of 
        the Committee on Financial Services of the House of 
        Representatives.
    (b) Qualification of Members.--
            (1) In general.--Members of the Commission shall be 
        appointed under subsection (a) from among persons who--
                    (A) have expertise in insurance, reinsurance, 
                insurance regulation, policyholder concerns, emergency 
                management, risk management, public finance, financial 
                markets, actuarial analysis, flood mapping and 
                planning, structural engineering, building standards, 
                land use planning, natural catastrophes, meteorology, 
                seismology, environmental issues, or other pertinent 
                qualifications or experience; and
                    (B) are not officers or employees of the United 
                States Government or of any State or local government.
            (2) Diversity.--In making appointments to the Commission--
                    (A) every effort shall be made to ensure that the 
                members are representative of a broad cross section of 
                perspectives within the United States; and
                    (B) each member of Congress described in subsection 
                (a) shall appoint not more than 1 person from any 
                single primary area of expertise described in paragraph 
                (1)(A) of this subsection.
    (c) Period of Appointment.--
            (1) In general.--Each member of the Commission shall be 
        appointed for the duration of the Commission.
            (2) Vacancies.--A vacancy on the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (d) Quorum.--
            (1) Majority.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number, as determined 
        by the Commission, may hold hearings.
            (2) Approval actions.--All recommendations and reports of 
        the Commission required by this title shall be approved only by 
        a majority vote of all of the members of the Commission.
    (e) Chairperson.--The Commission shall, by majority vote of all of 
the members, select 1 member to serve as the Chairperson of the 
Commission (in this title referred to as the ``Chairperson'').
    (f) Meetings.--The Commission shall meet at the call of its 
Chairperson or a majority of the members.

SEC. 205. DUTIES OF THE COMMISSION.

    The Commission shall examine the risks posed to the United States 
by natural catastrophes, and means for mitigating those risks and for 
paying for losses caused by natural catastrophes, including assessing--
            (1) the condition of the property and casualty insurance 
        and reinsurance markets prior to and in the aftermath of 
        Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major 
        hurricanes that struck the United States in 2004;
            (2) the current condition of, as well as the outlook for, 
        the availability and affordability of insurance in all regions 
        of the country;
            (3) the current ability of States, communities, and 
        individuals to mitigate their natural catastrophe risks, 
        including the affordability and feasibility of such activities;
            (4) the ongoing exposure of the United States to natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (5) the catastrophic insurance and reinsurance markets and 
        the relevant practices in providing insurance protection to 
        different sectors of the American population;
            (6) implementation of a catastrophic insurance system that 
        can resolve key obstacles currently impeding broader 
        implementation of catastrophic risk management and financing 
        with insurance;
            (7) the financial feasibility and sustainability of a 
        national, regional, or other pooling mechanism designed to 
        provide adequate insurance coverage and increased underwriting 
        capacity to insurers and reinsurers, including private-public 
        partnerships to increase insurance capacity in constrained 
        markets;
            (8) methods to promote public or private insurance policies 
        to reduce losses caused by natural catastrophes in the 
        uninsured sectors of the American population;
            (9) approaches for implementing a public or private 
        insurance scheme for low-income communities, in order to 
        promote risk reduction and insurance coverage in such 
        communities;
            (10) the impact of Federal and State laws, regulations, and 
        policies (including rate regulation, market access 
        requirements, reinsurance regulations, accounting and tax 
        policies, State residual markets, and State catastrophe funds) 
        on--
                    (A) the affordability and availability of 
                catastrophe insurance;
                    (B) the capacity of the private insurance market to 
                cover losses inflicted by natural catastrophes;
                    (C) the commercial and residential development of 
                high-risk areas; and
                    (D) the costs of natural catastrophes to Federal 
                and State taxpayers;
            (11) the present and long-term financial condition of State 
        residual markets and catastrophe funds in high-risk regions, 
        including the likelihood of insolvency following a natural 
        catastrophe, the concentration of risks within such funds, the 
        reliance on post-event assessments and State funding, and the 
        adequacy of rates;
            (12) the role that innovation in financial services could 
        play in improving the affordability and availability of natural 
        catastrophe insurance, specifically addressing measures that 
        would foster the development of financial products designed to 
        cover natural catastrophe risk, such as risk-linked securities;
            (13) the need for strengthened land use regulations and 
        building codes in States at high risk for natural catastrophes, 
        and methods to strengthen the risk assessment and enforcement 
        of structural mitigation and vulnerability reduction measures, 
        such as zoning and building code compliance;
            (14) the benefits and costs of proposed Federal natural 
        catastrophe insurance programs (including the Federal 
        Government's provision of reinsurance to State catastrophe 
        funds, private insurers, or other entities), specifically 
        addressing the costs to taxpayers, tax equity considerations, 
        and the record of other government insurance programs 
        (particularly with regard to charging actuarially sound 
        prices);
            (15) the ability of the United States private insurance 
        market--
                    (A) to cover insured losses caused by natural 
                catastrophes, including an estimate of the maximum 
                amount of insured losses that could be sustained during 
                a single year and the probability of natural 
                catastrophes occurring in a single year that would 
                inflict more insured losses than the United States 
                insurance and reinsurance markets could sustain; and
                    (B) to recover after covering substantial insured 
                losses caused by natural catastrophes;
            (16) the impact that demographic trends could have on the 
        amount of insured losses inflicted by future natural 
        catastrophes;
            (17) the appropriate role, if any, for the Federal 
        Government in stabilizing the property and casualty insurance 
        and reinsurance markets; and
            (18) the role of the Federal, State, and local governments 
        in providing incentives for feasible risk mitigation efforts.

SEC. 206. REPORT.

    (a) In General.--Not later than 9 months after the date of the 
enactment of this Act, the Commission shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a final report 
containing--
            (1) a detailed statement of the findings and assessments 
        conducted by the Commission pursuant to section 205; and
            (2) any recommendations for legislative, regulatory, 
        administrative, or other actions at the Federal, State, or 
        local levels that the Commission considers appropriate, in 
        accordance with the requirements of section 205.
    (b) Extension of Time.--The Commission may request Congress to 
extend the period of time for the submission of the report required 
under subsection (a) for an additional 3 months.

SEC. 207. POWERS OF THE COMMISSION.

    (a) Meetings; Hearings.--The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and receive such 
evidence as the Commission considers necessary to carry out the 
purposes of this title. Members may attend meetings of the Commission 
and vote in person, via telephone conference, or via video conference.
    (b) Authority of Members or Agents of the Commission.--Any member 
or agent of the Commission may, if authorized by a vote of the 
Commission, take any action which the Commission is authorized to take 
by this title.
    (c) Obtaining Official Data.--
            (1) Authority.--Notwithstanding any provision of section 
        552a of title 5, United States Code, the Commission may secure 
        directly from any department or agency of the United States any 
        information necessary to enable the Commission to carry out 
        this title.
            (2) Procedure.--Upon the request of the Chairperson, the 
        head of such department or agency shall furnish to the 
        Commission the information requested.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (e) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, any administrative support 
services necessary for the Commission to carry out its responsibilities 
under this title.
    (f) Acceptance of Gifts.--The Commission may accept, hold, 
administer, and utilize gifts, donations, and bequests of property, 
both real and personal, for the purposes of aiding or facilitating the 
work of the Commission. The Commission shall issue internal guidelines 
governing the receipt of donations of services or property.
    (g) Volunteer Services.--Notwithstanding the provisions of section 
1342 of title 31, United States Code, the Commission may accept and 
utilize the services of volunteers serving without compensation. The 
Commission may reimburse such volunteers for local travel and office 
supplies, and for other travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code.
    (h) Federal Property and Administrative Services Act of 1949.--
Subject to the Federal Property and Administrative Services Act of 
1949, the Commission may enter into contracts with Federal and State 
agencies, private firms, institutions, and individuals for the conduct 
of activities necessary to the discharge of its duties and 
responsibilities.
    (i) Limitation on Contracts.--A contract or other legal agreement 
entered into by the Commission may not extend beyond the date of the 
termination of the Commission.

SEC. 208. COMMISSION PERSONNEL MATTERS.

    (a) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (b) Subcommittees.--The Commission may establish subcommittees and 
appoint members of the Commission to such subcommittees as the 
Commission considers appropriate.
    (c) Staff.--Subject to such policies as the Commission may 
prescribe, the Chairperson may appoint and fix the pay of such 
additional personnel as the Chairperson considers appropriate to carry 
out the duties of the Commission. The Commission shall confirm the 
appointment of the executive director by majority vote of all of the 
members of the Commission.
    (d) Applicability of Certain Civil Service Laws.--Staff of the 
Commission may be--
            (1) appointed without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service; and
            (2) paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates, except that an 
        individual so appointed may not receive pay in excess of the 
        annual rate of basic pay prescribed for GS-15 of the General 
        Schedule under section 5332 of that title.
    (e) Experts and Consultants.--In carrying out its objectives, the 
Commission may procure temporary and intermittent services of 
consultants and experts under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for GS-15 of the General 
Schedule under section 5332 of that title.
    (f) Detail of Government Employees.--Upon request of the 
Chairperson, any Federal Government employee may be detailed to the 
Commission to assist in carrying out the duties of the Commission--
            (1) on a reimbursable basis; and
            (2) such detail shall be without interruption or loss of 
        civil service status or privilege.

SEC. 209. TERMINATION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits its report under section 206.

SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission, such 
sums as may be necessary to carry out this title, to remain available 
until expended.
                                                       Calendar No. 250

112th CONGRESS

  1st Session

                                S. 1940

                          [Report No. 112-98]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                            December 5, 2011

                 Read twice and placed on the calendar