[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2874 Referred in Senate (RFS)]

<DOC>
115th CONGRESS
  1st Session
                                H. R. 2874


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2017

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

_______________________________________________________________________

                                 AN ACT


 
 To achieve reforms to improve the financial stability of the National 
 Flood Insurance Program, to enhance the development of more accurate 
  estimates of flood risk through new technology and better maps, to 
    increase the role of private markets in the management of flood 
   insurance risks, and to provide for alternative methods to insure 
              against flood peril, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``21st Century Flood 
Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Annual limitation on premium increases.
Sec. 103. Flood insurance affordability program.
Sec. 104. Disclosure of premium methodology.
Sec. 105. Consideration of coastal and inland locations in premium 
                            rates.
Sec. 106. Monthly installment payment of premiums.
Sec. 107. Enhanced clear communication of flood risks.
Sec. 108. Availability of flood insurance information upon request.
Sec. 109. Disclosure of flood risk information upon transfer of 
                            property.
Sec. 110. Voluntary community-based flood insurance pilot program.
Sec. 111. Use of replacement cost in determining premium rates.
Sec. 112. Cap on premiums.
Sec. 113. Premium rates for certain mitigated properties.
Sec. 114. Study of flood insurance coverage for units in cooperative 
                            housing.
Sec. 115. Pilot program for properties with preexisting conditions.
Sec. 116. Federal Flood Insurance Advisory Committee.
Sec. 117. Interagency guidance on compliance.
Sec. 118. GAO study of claims adjustment practices.
Sec. 119. GAO study of flood insurance coverage treatment of earth 
                            movement.
Sec. 120. Definitions.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

Sec. 201. Private flood insurance.
Sec. 202. Opt-out of mandatory coverage requirement for commercial 
                            properties.
Sec. 203. Elimination of non-compete requirement.
Sec. 204. Public availability of program information.
Sec. 205. Refund of premiums upon cancellation of policy because of 
                            replacement with private flood insurance.
Sec. 206. GAO study of flood damage savings accounts.
Sec. 207. Demonstration program for flood damage savings accounts.
                      TITLE III--MAPPING FAIRNESS

Sec. 301. Use of other risk assessment tools in determining premium 
                            rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard 
                            areas.
Sec. 304. Communication and outreach regarding map changes.
Sec. 305. Sharing and use of maps and data.
Sec. 306. Community flood maps.
    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

Sec. 401. Provision of Community Rating System premium credits to 
                            maximum number of communities practicable.
Sec. 402. Community accountability for repetitively flooded areas.
Sec. 403. Increased cost of compliance coverage.
                       TITLE V--PROGRAM INTEGRITY

Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability 
                            surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive 
                            lifetime claims.
Sec. 506. Pay for performance and streamlining costs and reimbursement.
Sec. 507. Enforcement of mandatory purchase requirements.
Sec. 508. Satisfaction of mandatory purchase requirement in States 
                            allowing all-perils policies.
Sec. 509. Flood insurance purchase requirements.
Sec. 510. Clarifications; deadline for approval of claims.
Sec. 511. Risk transfer requirement.
Sec. 512. GAO study of simplification of National Flood Insurance 
                            Program.
Sec. 513. GAO study on enforcement of mandatory purchase requirements.
                    TITLE VI--ADMINISTRATIVE REFORMS

Sec. 601. Penalties for fraud and false statements in the National 
                            Flood Insurance Program.
Sec. 602. Enhanced policyholder appeals process rights.
Sec. 603. Deadline for approval of claims.
Sec. 604. Litigation process oversight and reform.
Sec. 605. Prohibition on hiring disbarred attorneys.
Sec. 606. Technical assistance reports.
Sec. 607. Improved disclosure requirement for standard flood insurance 
                            policies.
Sec. 608. Reserve Fund amounts.
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 610. Limited exemption for disaster or catastrophe claims 
                            adjusters.

           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

SEC. 101. 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 ``September 30, 
2017'' and inserting ``September 30, 2022''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2017'' and inserting ``September 30, 2022''.

SEC. 102. 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) in paragraph (1), by striking ``18 percent'' and 
        inserting ``15 percent''; and
            (2) in paragraph (2)--
                    (A) by striking ``5 percent'' and inserting ``6.5 
                percent''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``, except that (A) during the 12-month 
                period on the date of the enactment of the 21st Century 
                Flood Reform Act this paragraph shall be applied by 
                substituting `5 percent' for `6.5 percent', (B) during 
                the 12-month period beginning upon the expiration of 
                the period referred to in clause (A), this paragraph 
                shall be applied by substituting `5.5 percent' for `6.5 
                percent', and (C) during the 12-month period beginning 
                upon the expiration of the period referred to in clause 
                (B), this paragraph shall be applied by substituting 
                `6.0 percent' for `6.5 percent'''.

SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM.

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

``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.

    ``(a) Authority.--The Administrator shall carry out a program under 
this section to provide financial assistance, through State programs 
carried out by participating States, for eligible low-income households 
residing in eligible properties to purchase policies for flood 
insurance coverage made available under this title.
    ``(b) Participation.--Participation in the program under this 
section shall be voluntary on the part of a State or consortium of 
States.
    ``(c) State Administration.--Each participating State shall 
delegate to a State agency or nonprofit organization the 
responsibilities for administrating the State's program under this 
section.
    ``(d) Eligible Households.--
            ``(1) In general.--During any fiscal year, assistance under 
        the program under this section may be provided only for a 
        household that has an income, as determined for such fiscal 
        year by the participating State in which such household 
        resides, that is less than the income limitation established 
        for such fiscal year for purposes of the State program by the 
        participating State, except that--
                    ``(A) assistance under the program under this 
                section may not be provided for a household having a 
                income that exceeds the greater of--
                            ``(i) the amount equal to 150 percent of 
                        the poverty level for such State; or
                            ``(ii) the amount equal to 60 percent of 
                        the median income of households residing in 
                        such State; and
                    ``(B) a State may not exclude a household from 
                eligibility in a fiscal year solely on the basis of 
                household income if such income is less than 110 
                percent of the poverty level for the State in which 
                such household resides.
            ``(2) State verification of income eligibility.--In 
        verifying income eligibility for purposes of paragraph (1), the 
        participating State may apply procedures and policies 
        consistent with procedures and policies used by the State 
        agency administering programs under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), under title XX of 
        the Social Security Act (42 U.S.C. 1397 et seq.), under 
        subtitle B of title VI of the Omnibus Budget Reconciliation Act 
        of 1981 (42 U.S.C. 9901 et seq.; relating to community services 
        block grant program), under any other provision of law that 
        carries out programs which were administered under the Economic 
        Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) before August 
        13, 1981, or under other income assistance or service programs 
        (as determined by the State).
            ``(3) Certification by state of eligibility households.--
        For each fiscal year, each participating State shall certify to 
        the Administrator compliance of households who are to be 
        provided assistance under the State program during such fiscal 
        year with the income requirements under paragraph (1).
    ``(e) Eligible Properties.--Assistance under the program under this 
section may be provided only for a residential property--
            ``(1) that has 4 or fewer residences;
            ``(2) that is owned and occupied by an eligible household;
            ``(3) for which a base flood elevation is identified on a 
        flood insurance rate map of the Administrator that is in 
        effect;
            ``(4) for which such other information is available as the 
        Administrator considers necessary to determine the flood risk 
        associated with such property; and
            ``(5) that is located in a community that is participating 
        in the national flood insurance program.
    ``(f) Types of Assistance.--Under the program under this section, a 
participating State shall elect to provide financial assistance for 
eligible households in one of the following forms:
            ``(1) Limitation on rate increases.--By establishing a 
        limitation on the rate of increases in the amount of chargeable 
        premiums paid by eligible households for flood insurance 
        coverage made available under this title.
            ``(2) Limitation on rates.--By establishing a limitation on 
        the amount of chargeable premiums paid by eligible households 
        for flood insurance coverage made available under this title.
    ``(g) Notification to FEMA.--Under the program under this section, 
a participating State shall, on a fiscal year basis and at the time and 
in the manner provided by the Administrator--
            ``(1) identify for the Administrator the eligible 
        households residing in the State who are to be provided 
        assistance under the State program during such fiscal year; and
            ``(2) notify the Administrator of the type and levels of 
        assistance elected under subsection (f) to be provided under 
        the State program with respect to such eligible households 
        residing in the State.
    ``(h) Amount of Assistance.--Under the program under this section, 
in each fiscal year the Administrator shall, notwithstanding section 
1308, make flood insurance coverage available for purchase by 
households identified as eligible households for such fiscal year by a 
participating State pursuant to subsection (e) at chargeable premium 
rates that are discounted by an amount that is based on the type and 
levels of assistance elected pursuant to subsection (f) by the 
participating State for such fiscal year.
    ``(i) Billing Statement.--In the case of an eligible household for 
which assistance under the program under this section is provided with 
respect to a policy for flood insurance coverage, the annual billing 
statement for such policy shall include statements of the following 
amounts:
            ``(1) The estimated risk premium rate for the property 
        under section 1307(a)(1).
            ``(2) If applicable, the estimated risk premium rate for 
        the property under section 1307(a)(2).
            ``(3) The chargeable risk premium rate for the property 
        taking into consideration the discount pursuant to subsection 
        (h).
            ``(4) The amount of the discount pursuant to subsection (h) 
        for the property.
            ``(5) The number and dollar value of claims filed for the 
        property, over the life of the property, under a flood 
        insurance policy made available under the Program and the 
        effect, under this Act, of filing any further claims under a 
        flood insurance policy with respect to that property.
    ``(j) Funding Through State Affordability Surcharges.--
            ``(1) Imposition and collection.--Notwithstanding section 
        1308, for each fiscal year in which flood insurance coverage 
        under this title is made available for properties in a 
        participating State at chargeable premium rates that are 
        discounted pursuant to subsection (f), the Administrator shall 
        impose and collect a State affordability surcharge on each 
        policy for flood insurance coverage for a property located in 
        such participating State that is (A) not a residential property 
        having 4 or fewer residences, or (B) is such a residential 
        property but is owned by a household that is not an eligible 
        household for purposes of such fiscal year.
            ``(2) Amount.--The amount of the State affordability 
        surcharge imposed during a fiscal year on each such policy for 
        a property in a participating State shall be--
                    ``(A) sufficient such that the aggregate amount of 
                all such State affordability surcharges imposed on 
                properties in such participating State during such 
                fiscal year is equal to the aggregate amount by which 
                all policies for flood insurance coverage under this 
                title sold during such fiscal year for properties owned 
                by eligible households in the participating State are 
                discounted pursuant to subsection (f); and
                    ``(B) the same amount for each property in the 
                participating State being charged such a surplus.
    ``(k) Treatment of Other Surcharges.--The provision of assistance 
under the program under this section with respect to any property and 
any limitation on premiums or premium increases pursuant to subsection 
(f) for the property shall not affect the applicability or amount of 
any surcharge under section 1308A for the property, of any increase in 
premiums charged for the property pursuant to section 1310A(c), or of 
any equivalency fee under section 1308B for the property.
    ``(l) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Participating state.--The term `participating State' 
        means, with respect to a fiscal year, a State that is 
        participating in the program under this section for such fiscal 
        year.
            ``(2) Eligible household.--The term `eligible household' 
        means, with respect to a fiscal year and a participating State, 
        a household that has an income that is less than the amount of 
        the income limitation for the fiscal year established for 
        purposes of the State program of such participating State 
        pursuant to subsection (g)(1).
            ``(3) Poverty level.--The term `poverty level'' means, with 
        respect to a household in any State, the income poverty line as 
        prescribed and revised at least annually pursuant to section 
        673(2) of the Community Services Block Grant Act (42 U.S.C. 
        9902(2)), as applicable to such State.
            ``(4) State.--The term `State' shall include a consortium 
        of States established for purposes of administrating the 
        program under this section with respect to the member States of 
        the consortium.
            ``(5) State program.--The term `State program' means a 
        program carried out in compliance with this section by a 
        participating State in conjunction with the program under this 
        section of the Administrator.
    ``(m) Regulations.--The Administrator shall issue such regulations 
as may be necessary to carry out the program under this section.''.

SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by adding at the end the following new subsection:
    ``(n) Disclosure of Premium Methodology.--
            ``(1) Disclosure.--Six months prior to the effective date 
        of risk premium rates, the Administrator shall cause to be 
        published in the Federal Register an explanation of the bases 
        for, and methodology used to determine, the chargeable premium 
        rates to be effective for flood insurance coverage under this 
        title.
            ``(2) Alignment with industry practices.--The disclosure 
        required under paragraph (1) shall, to the extent practicable, 
        be aligned with industry patterns and practices and shall 
        include information and data recommended by the State insurance 
        commissioners guidelines on rate filings.
            ``(3) Public meetings.--The Administrator shall, on an 
        annual basis, hold at least one public meeting in each of the 
        geographical regions of the United States, as defined by the 
        Administrator for purposes of the National Flood Insurance 
        Program, for the purpose of explaining the methodology 
        described in paragraph (1) and answering questions and 
        receiving comments regarding such methodology. The 
        Administrator shall provide notice of each such public meeting 
        in advance, in such manner, and in using such means as are 
        reasonably designed to notify interested parties and members of 
        the public of the date and time, location, and purpose of such 
        meeting, and of how to submit questions or comments.''.

SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN PREMIUM 
              RATES.

    (a) Estimates of Premium Rates.--Subparagraph (A) of section 
1307(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4014(a)(1)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end; and
            (2) by adding at the end the following new clause:
                            ``(iii) the differences in flood risk for 
                        properties impacted by coastal flood risk and 
                        properties impacted by riverine, or inland 
                        flood risk; and''.
    (b) Establishment of Chargeable Premium Rates.--Paragraph (1) of 
section 1308(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting ``due to differences in flood risk 
resulting from coastal flood hazards and riverine, or inland flood 
hazards and'' after ``including differences in risks''.
    (c) Revised Rates.--Not later than the expiration of the two-year 
period beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management Agency shall revise 
risk premium rates under the National Flood Insurance Program to 
implement the amendments made by this section.

SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

    (a) Authority.--Subsection (g) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``With respect'' and inserting the following:
    ``(g) Frequency of Premium Collection.--
            ``(1) Options.--With respect''; and
            (2) by adding at the end the following:
            ``(2) Monthly installment payment of premiums.--
                    ``(A) Exemption from rulemaking.--Until such time 
                as the Administrator promulgates regulations 
                implementing paragraph (1) of this subsection, the 
                Administrator may adopt policies and procedures, 
                notwithstanding any other provisions of law and in 
                alignment and consistent with existing industry escrow 
                and servicing standards, necessary to implement such 
                paragraph without undergoing notice and comment 
                rulemaking and without conducting regulatory analyses 
                otherwise required by statute, regulation, or Executive 
                order.
                    ``(B) Pilot program.--The Administrator may 
                initially implement paragraph (1) of this subsection as 
                a pilot program that provides for a gradual phase-in of 
                implementation.
                    ``(C) Policyholder protection.--The Administrator 
                may--
                            ``(i) during the 12-month period beginning 
                        on the date of the enactment of this 
                        subparagraph, charge policyholders choosing to 
                        pay premiums in monthly installments a fee for 
                        the total cost of the monthly collection of 
                        premiums not to exceed $25 annually; and
                            ``(ii) after the expiration of the 12-month 
                        period referred to in clause (i), adjust the 
                        fee charged annually to cover the total cost of 
                        the monthly collection of premiums as 
                        determined by the report submitted pursuant to 
                        subparagraph (D).
                    ``(D) Report.--Not later than six months after the 
                date of the enactment of this Act, the Comptroller 
                General shall submit a report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate, that sets forth all of the costs associated 
                with the monthly payment of premiums, including any up-
                front costs associated with infrastructure development, 
                the impact on all policyholders including those that 
                exercise the option to pay monthly and those that do 
                not, options for minimizing the costs, particularly the 
                costs to policyholders, and the feasibility of adopting 
                practices that serve to minimize costs to policyholders 
                such as automatic payments and electronic payments.
                    ``(E) Annual reports.--On an annual basis, the 
                Administrator shall report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate the ongoing costs associated with the 
                monthly payment of premiums.''.
    (b) Implementation.--Clause (ii) of section 1307(a)(1)(B) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is 
amended by inserting before ``any administrative expenses'' the 
following: ``the costs associated with the monthly collection of 
premiums provided for in section 1308(g) (42 U.S.C. 4015(g)), but only 
if such costs exceed the operating costs and allowances set forth in 
clause (i) of this subparagraph, and''.

SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.

    (a) In General.--Subsection (l) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is amended to read as 
follows:
    ``(l) Clear Communications.--
            ``(1) Newly issued and renewed policies.--For all policies 
        for flood insurance coverage under the National Flood Insurance 
        Program that are newly issued or renewed, the Administrator 
        shall clearly communicate to policyholders--
                    ``(A) their full flood risk determinations, 
                regardless of whether their premium rates are full 
                actuarial rates; and
                    ``(B) the number and dollar value of claims filed 
                for the property, over the life of the property, under 
                a flood insurance policy made available under the 
                Program and the effect, under this Act, of filing any 
                further claims under a flood insurance policy with 
                respect to that property.''.
    (b) Effective Date.--Subsection (l) of section 1308 of the National 
Flood Insurance Act of 1968, as added by subsection (a) of this 
section, shall take effect beginning upon the expiration of the 12-
month period that begins on the date of the enactment of this Act. Such 
subsection (l), as in effect immediately before the amendment made by 
paragraph (1), shall apply during such 12-month period.

SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON REQUEST.

    Section 1313 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4020) is amended--
            (1) by inserting ``(a) Public Information and Data.--'' 
        after ``Sec. 1313.''; and
            (2) by adding at the end the following new subsection:
    ``(b) Availability of Flood Insurance Information Upon Request.--
Not later than 30 days after a request for such information by the 
current owner of a property, the Administrator shall provide to the 
owner any information, including historical information, available to 
the Administrator on flood insurance program coverage, payment of 
claims, and flood damages for the property at issue, and any 
information the Administrator has on whether the property owner may be 
required to purchase coverage under the National Flood Insurance 
Program due to previous receipt of Federal disaster assistance, 
including assistance provided by the Small Business Administration, the 
Department of Housing and Urban Development, or the Federal Emergency 
Management Agency, or any other type of assistance that subjects the 
property to the mandatory purchase requirement under section 102 of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).''.

SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
              PROPERTY.

    (a) In General.--Chapter 1 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by the preceding provisions 
of this Act, is further amended by adding at the end the following new 
section:

``SEC. 1327. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
              PROPERTY.

    ``(a) Requirement for Participation in Program.--After September 
30, 2022, no new flood insurance coverage may be provided under this 
title for any real property located in any area (or subdivision 
thereof) unless an appropriate body has imposed, by statute or 
regulation, a duty on any seller or lessor of improved real estate 
located in such area to provide to any purchaser or lessee of such 
property a property flood hazard disclosure which the Administrator has 
determined meets the requirements of subsection (b).
    ``(b) Disclosure Requirements.--A property flood hazard disclosure 
for a property shall meet the requirements of this subsection only if 
the disclosure--
            ``(1) is made in writing;
            ``(2) discloses any actual knowledge of the seller or 
        lessor of--
                    ``(A) prior physical damage caused by flood to any 
                building located on the property;
                    ``(B) prior insurance claims for losses covered 
                under the National Flood Insurance Program or private 
                flood insurance with respect to such property;
                    ``(C) any previous notification regarding the 
                designation of the property as a multiple loss 
                property; and
                    ``(D) any Federal legal obligation to obtain and 
                maintain flood insurance running with the property, 
                such as any obligation due to a previous form of 
                disaster assistance under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act received 
                by any owner of the property; and
            ``(3) is delivered by or on behalf of the seller or lessor 
        to the purchaser or lessee before such purchaser or lessee 
        becomes obligated under any contract for purchase or lease of 
        the property.''.
    (b) Availability of Flood Insurance Coverage.--Subsection (c) of 
section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012(c)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) given satisfactory assurance that by September 30, 
        2022, property flood hazard disclosure requirements will have 
        been adopted for the area that meet the requirements of section 
        1326.''.

SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT PROGRAM.

    (a) Establishment.--The Administrator of the Federal Emergency 
Management Agency (in this section referred to as the 
``Administrator'') may carry out a community-based flood insurance 
pilot program to make available, for purchase by participating 
communities, a single, community-wide flood insurance policy under the 
National Flood Insurance Program that--
            (1) covers all residential and non-residential properties 
        within the community; and
            (2) satisfies, for all such properties within the 
        community, the mandatory purchase requirements under section 
        102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
        4012a).
    (b) Participation.--Participation by a community in the pilot 
program under this section shall be entirely voluntary on the part of 
the community.
    (c) Requirements for Community-wide Policies.--The Administrator 
shall ensure that a community-wide flood insurance policy made 
available under the pilot program under this section incorporates the 
following requirements:
            (1) A mapping requirement for properties covered by the 
        policy.
            (2) A cap on premiums.
            (3) A deductible.
            (4) Certification or accreditation of mitigation 
        infrastructure when available and appropriate.
            (5) A community audit.
            (6) The Community Rating System under section 1315(b) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)).
            (7) A method of preventing redundant claims payments by the 
        National Flood Insurance Program in the case of a claim by an 
        individual property owner who is covered by a community-wide 
        flood insurance policy and an individual policy obtained 
        through the Program.
            (8) Coverage for damage arising from flooding that complies 
        with the standards under the National Flood Insurance Program 
        appropriate to the nature and type of property covered.
    (d) Timing.--The Administrator may establish the demonstration 
program under this section not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act and the 
program shall terminate on September 30, 2022.
    (e) Definition of Community.--For purposes of this section, the 
term ``community'' means any unit of local government, within the 
meaning given such term under the laws of the applicable State.

SEC. 111. USE OF REPLACEMENT COST IN DETERMINING PREMIUM RATES.

    (a) Study of Risk Rating Redesign Flood Insurance Premium Rating 
Options.--
            (1) Study.--The Administrator of the Federal Emergency 
        Management Agency shall conduct a study to--
                    (A) evaluate insurance industry best practices for 
                risk rating and classification, including practices 
                related to replacement cost value in premium rate 
                estimations;
                    (B) assess options, methods, and strategies for 
                including replacement cost value in the Administrator's 
                estimates under section 1307(a)(1) of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1));
                    (C) provide recommendations for including 
                replacement cost value in the estimate of the risk 
                premium rates for flood insurance under such section 
                1307(a)(1);
                    (D) identify an appropriate methodology to 
                incorporate replacement cost value into the 
                Administrator's estimates under such section 
                1307(a)(1);
                    (E) develop a feasible implementation plan and 
                projected timeline for including replacement cost value 
                in the estimates of risk premium rates for flood 
                insurance made available under the National Flood 
                Insurance Program.
            (2) Report.--
                    (A) Requirement.--Not later than the expiration of 
                the 12-month period beginning on the date of the 
                enactment of this Act, the Administrator shall submit 
                to the Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate a report that contains 
                the results and conclusions of the study required under 
                paragraph (1).
                    (B) Contents.--The report submitted under 
                subparagraph (A) shall include--
                            (i) an analysis of the recommendations 
                        resulting from the study under paragraph (1) 
                        and any potential impacts on the National Flood 
                        Insurance Program, including cost 
                        considerations;
                            (ii) a description of any actions taken by 
                        the Administrator to implement the study 
                        recommendations; and
                            (iii) a description of any study 
                        recommendations that have been deferred or not 
                        acted upon, together with a statement 
                        explaining the reasons for such deferral or 
                        inaction.
    (b) Use of Replacement Cost Value in Premium Rates; 
Implementation.--
            (1) Estimated rates.--Paragraph (1) of section 1307(a) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)) 
        is amended, in the matter preceding subparagraph (A), by 
        inserting after ``flood insurance'' the following: ``, which 
        shall incorporate replacement cost value, and''.
            (2) Chargeable rates.--Subsection (b) of section 1308 of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)) is 
        amended, in the matter preceding paragraph (1), by inserting 
        after ``Such rates'' the following: ``shall incorporate 
        replacement cost value and''.
            (3) Effective date.--The amendments under paragraphs (1) 
        and (2) of this subsection shall be made upon the expiration of 
        the 12-month period beginning on the date of the enactment of 
        this Act.
            (4) Applicability and phase-in.--The Administrator of the 
        Federal Emergency Management Agency shall apply the amendments 
        under paragraphs (1) and (2) to flood insurance coverage made 
        available under the National Flood Insurance Act of 1968 for 
        properties located in various geographic regions in the United 
        States such that--
                    (A) over the period beginning upon the expiration 
                of the period referred to in paragraph (3) of this 
                subsection and ending on December 31, 2020, the 
                requirement under such amendments shall be gradually 
                phased in geographically throughout the United States 
                as sufficient information for such implementation 
                becomes available; and
                    (B) after the expiration of such period referred to 
                in subparagraph (A), such amendments shall apply to all 
                flood insurance coverage made available under the 
                National Flood Insurance Act of 1968.

SEC. 112. CAP ON PREMIUMS.

    Paragraph (1) of section 1308(e) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
            (1) by striking ``except --'' and inserting ``except as 
        provided in paragraph (4); and'';
            (2) by striking subparagraphs (A) and (B);
            (3) in subparagraph (C)--
                    (A) in clause (ii), by redesignating subclauses (I) 
                and (II) as items (aa) and (bb), respectively;
                    (B) by redesignating clauses (i) through (iii) as 
                subclauses (I) through (III), respectively; and
                    (C) by striking ``(C) in the case of a property 
                that--'' and inserting the following:
            ``(B) The limitations under clauses (i) and (ii) of 
        subparagraph (A) shall not apply in the case of--
                    ``(i) a property identified under section 1307(g); 
                or
                    ``(ii) a property that--'';
            (4) by striking ``under this title for any property'' and 
        inserting the following: ``under this title--
                    ``(i) for any property'';
            (5) by inserting ``(A) subject to subparagraph (B),'' after 
        the paragraph designation; and
            (6) by inserting before subparagraph (B), as so 
        redesignated by the amendment made by paragraph (3)(C) of this 
        section, the following new clause:
                    ``(ii) for any residential property having 4 or 
                fewer residences and for which there is elevation data 
                meeting standards of the Administrator, may not exceed 
                $10,000 in any single year, except that such amount (as 
                it may have been previously adjusted) shall be adjusted 
                for inflation by the Administrator upon the expiration 
                of the 5-year period beginning upon the date of the 
                enactment of the 21st Century Flood Reform Act and upon 
                the expiration of each successive 5-year period 
                thereafter, in accordance with an inflationary index 
                selected by the Administrator.''.

SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.

    (a) Mitigation Strategies.--Paragraph (1) of section 1361(d) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraphs:
                    ``(C) with respect to buildings in dense urban 
                environments, methods that can be deployed on a block 
                or neighborhood scale; and
                    ``(D) elevation of mechanical systems; and''.
    (b) Mitigation Credit.--Subsection (k) of section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
            (1) by striking ``shall take into account'' and inserting 
        the following: ``shall--
            ``(1) take into account'';
            (2) in paragraph (1), as so designated by the amendment 
        made by paragraph (1) of this subsection, by striking the 
        period at the end and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(2) offer a reduction of the risk premium rate charged to 
        a policyholder, as determined by the Administrator, if the 
        policyholder implements any mitigation method described in 
        paragraph (1).''.

SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN COOPERATIVE 
              HOUSING.

    The Administrator of the Federal Emergency Management Agency shall 
conduct a study to analyze and determine the feasibility of providing 
flood insurance coverage under the National Flood Insurance Program 
under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
for individual dwelling units in cooperative housing projects. Not 
later than the expiration of the 24-month period beginning on the date 
of the enactment of this Act, the Administrator shall submit a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the findings and conclusions of the study conducted pursuant 
to this section, which shall include a plan setting forth specific 
actions to implement the development of such flood insurance coverage.

SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING CONDITIONS.

    Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4018) is amended by adding at the end the following new subsection:
    ``(c) Pilot Program for Investigation of Preexisting Structural 
Conditions.--
            ``(1) Voluntary program.--The Administrator shall carry out 
        a pilot program under this subsection to provide for companies 
        participating in the Write Your Own program (as such term is 
        defined in section 1370(a) (42 U.S.C. 4121(a))) to investigate 
        preexisting structural conditions of insured properties and 
        potentially insured properties that could result in the denial 
        of a claim under a policy for flood insurance coverage under 
        this title in the event of a flood loss to such property. 
        Participation in the pilot program shall be voluntary on the 
        part of Write Your Own companies.
            ``(2) Investigation of properties.--Under the pilot program 
        under this subsection, a Write Your Own company participating 
        in the program shall--
                    ``(A) provide in policies for flood insurance 
                coverage under this title covered by the program that, 
                upon the request of the policyholder, the company shall 
                provide for--
                            ``(i) an investigation of the property 
                        covered by such policy, using common methods, 
                        to determine whether preexisting structural 
                        conditions are present that could result in the 
                        denial of a claim under such policy for flood 
                        losses; and
                            ``(ii) if such investigation is not 
                        determinative, an on-site inspection of the 
                        property to determine whether such preexisting 
                        structural conditions are present;
                    ``(B) upon completion of an investigation or 
                inspection pursuant to subparagraph (A) that determines 
                that such a preexisting structural condition is present 
                or absent, submit a report to the policyholder and 
                Administrator describing the condition; and
                    ``(C) impose a surcharge on each policy described 
                in subparagraph (A) in such amount that the 
                Administrator determines is appropriate to cover the 
                costs of investigations and inspections performed 
                pursuant to such policies and reimburse Write Your Own 
                companies participating in the program under this 
                subsection for such costs.
            ``(3) Interim report.--Not later than December 31, 2021, 
        the Administrator shall submit a report to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        describing the operation of the pilot program to that date.
            ``(4) Sunset.--The Administrator may not provide any policy 
        for flood insurance described in paragraph (2)(A) after 
        December 31, 2022.
            ``(5) Final report.--Not later than March 31, 2023, the 
        Administrator shall submit a final report regarding the pilot 
        program under this section to the Committee on Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate. The report 
        shall include any findings and recommendations of the 
        Administrator regarding the pilot program.''.

SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

    (a) Establishment.--There is established an advisory committee to 
be known as the Federal Flood Insurance Advisory Committee (in this 
section referred to as the ``Committee'').
    (b) Membership.--
            (1) Members.--The Committee shall consist of--
                    (A) the Administrator of the Federal Emergency 
                Management Agency (in this section referred to as the 
                ``Administrator''), or the designee thereof;
                    (B) the Secretary of the Treasury, or the designee 
                thereof; and
                    (C) additional members appointed by the 
                Administrator or the designee of the Administrator, who 
                shall be--
                            (i) two representatives of the property and 
                        casualty insurance sector;
                            (ii) one individual who served in the past, 
                        or is currently serving, as an insurance 
                        regulator of a State, the District of Columbia, 
                        the Commonwealth of Puerto Rico, Guam, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Virgin Islands, American Samoa, or any 
                        federally-recognized Indian tribe;
                            (iii) one representative of the financial 
                        or insurance sectors who is involved in risk 
                        transfers, including reinsurance, resilience 
                        bonds, and other insurance-linked securities;
                            (iv) one actuary with demonstrated high-
                        level knowledge of catastrophic risk insurance;
                            (v) two insurance professionals with 
                        demonstrated experience with the sale of flood 
                        insurance under the National Flood Insurance 
                        Program;
                            (vi) two representatives of catastrophic 
                        risk insurance programs;
                            (vii) one insurance claims specialist;
                            (viii) one representative of a recognized 
                        consumer advocacy organization;
                            (ix) one individual having demonstrated 
                        expertise in the challenges in insuring low-
                        income communities;
                            (x) one representative from an academic 
                        institution who has demonstrated expertise in 
                        insurance; and
                            (xi) such other recognized experts in the 
                        field of insurance as the Administrator 
                        considers necessary.
            (2) Qualifications.--In appointing members under paragraph 
        (1)(C), the Administrator shall, to the maximum extent 
        practicable, ensure the membership of the Committee has a 
        balance of members reflecting geographic diversity, including 
        representation from areas inland or with coastline identified 
        by the Administrator as at high risk for flooding or as areas 
        having special flood hazards.
    (c) Duties.--The Committee shall review, and make recommendations 
to the Administrator, upon request, on matters related to the insurance 
aspects of the National Flood Insurance Program, including ratemaking, 
technology to administer insurance, risk assessment, actuarial 
practices, claims practices, sales and insurance delivery, compensation 
and allowances, generally and based on the complexities of the program, 
and best insurance practices.
    (d) Chairperson.--The members of the Committee shall elect one 
member to serve as the chairperson of the Committee (in this section 
referred to as the ``Chairperson'').
    (e) Compensation.--Members of the Committee shall receive no 
additional compensation by reason of their service on the Committee.
    (f) Meetings and Actions.--
            (1) In general.--The Committee 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 in accordance with the 
        Committee's charter.
            (2) Initial meeting.--The Administrator, or a person 
        designated by the Administrator, shall request and coordinate 
        the initial meeting of the Committee.
    (g) 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 Committee in carrying 
out its duties.
    (h) Powers.--In carrying out this section, the Committee may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as it considers appropriate.
    (i) Reports to Congress.--The Administrator, on an annual basis, 
shall report to the Committee on Financial Services of the House of 
Representatives, the Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Office of Management and Budget on--
            (1) the recommendations made by the Committee;
            (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve the insurance 
        aspects of the national flood insurance program; and
            (3) any recommendations made by the Committee that have 
        been deferred or not acted upon, together with an explanatory 
        statement.

SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE.

    The Federal entities for lending regulation (as such term is 
defined in section 3(a) of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4003(a))), in consultation with the Administrator of the 
Federal Emergency Management Agency, shall update and reissue the 
document entitled ``Interagency Questions and Answers Regarding Flood 
Insurance'' not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act and not less 
frequently than biennially thereafter.

SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.

    The Comptroller General of the United States shall conduct a study 
of the policies and practices for adjustment of claims for losses under 
flood insurance coverage made available under the National Flood 
Insurance Act, which shall include--
            (1) a comparison of such policies and practices with the 
        policies and practices for adjustment of claims for losses 
        under other insurance coverage;
            (2) an assessment of the quality of the adjustments 
        conducted and the effects of such policies and practices on 
        such quality;
            (3) identification of any incentives under such policies 
        and practices that affect the speed with which such adjustments 
        are conducted; and
            (4) identification of the affects of such policies and 
        practices on insureds submitting such claims for losses.

SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF EARTH 
              MOVEMENT.

    The Comptroller General of the United States shall conduct a study 
of the treatment, under flood insurance coverage made available under 
the National Flood Insurance Act, of earth movement and subsidence, 
including earth movement and subsidence caused by flooding, which shall 
include--
            (1) identification and analysis of the effects of such 
        treatment on the National Flood Insurance Program and insureds 
        under the program;
            (2) an assessment of the availability and affordability of 
        coverage in the private insurance market for earth movement and 
        subsidence caused by flooding;
            (3) an assessment of the effects on the National Flood 
        Insurance Program of covering earth movement and subsidence 
        caused by flooding; and
            (4) a projection of the increased premiums that would be 
        required to make coverage for earth movement losses actuarially 
        sound and not fiscally detrimental to the continuation of the 
        National Flood Insurance Program.

SEC. 120. DEFINITIONS.

    (a) National Flood Insurance Act of 1968.--Subsection (a) of 
section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4121(a)) is amended--
            (1) in paragraph (14), by striking ``and'' at the end;
            (2) in paragraph (15), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(16) the term `Write Your Own Program' means the program 
        under which the Federal Emergency Management Agency enters into 
        a standard arrangement with private property insurance 
        companies to sell contracts for flood insurance coverage under 
        this title under their own business lines of insurance, and to 
        adjust and pay claims arising under such contracts; and
            ``(17) the term `Write Your Own company' means a private 
        property insurance company that participates in the Write Your 
        Own Program.''.
    (b) Biggert-Waters Flood Insurance Reform Act of 2012.--Subsection 
(a) of section 100202 of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4004(a)) is amended by striking paragraph (5) and 
inserting the following new paragraph:
            ``(5) Write your own.--The terms `Write Your Own Program' 
        and `Write Your Own company' have the meanings given such terms 
        in section 1370(a) of the National Flood Insurance Act of 1968 
        (42 U.S.C. 4121(a)).''.

TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

SEC. 201. PRIVATE FLOOD INSURANCE.

    (a) Mandatory Purchase Requirement.--
            (1) Amount and term of coverage.--Section 102 of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended by 
        striking ``Sec. 102. (a)'' and all that follows through the end 
        of subsection (a) and inserting the following:
    ``Sec. 102. (a) Amount and Term of Coverage.--After the expiration 
of sixty days following the date of the enactment of this Act, no 
Federal officer or agency shall approve any financial assistance for 
acquisition or construction purposes for use in any area that has been 
identified by the Administrator as an area having special flood hazards 
and in which the sale of flood insurance has been made available under 
the National Flood Insurance Act of 1968, unless the building or mobile 
home and any personal property to which such financial assistance 
relates is covered by flood insurance: Provided, That the amount of 
flood insurance (1) in the case of Federal flood insurance, is at least 
equal to the development or project cost of the building, mobile home, 
or personal property (less estimated land cost), the outstanding 
principal balance of the loan, or the maximum limit of Federal flood 
insurance coverage made available with respect to the particular type 
of property, whichever is less; or (2) in the case of private flood 
insurance, is at least equal to the development or project cost of the 
building, mobile home, or personal property (less estimated land cost), 
the outstanding principal balance of the loan, or the maximum limit of 
Federal flood insurance coverage made available with respect to the 
particular type of property, whichever is less: Provided further, That 
if the financial assistance provided is in the form of a loan or an 
insurance or guaranty of a loan, the amount of flood insurance required 
need not exceed the outstanding principal balance of the loan and need 
not be required beyond the term of the loan. The requirement of 
maintaining flood insurance shall apply during the life of the 
property, regardless of transfer of ownership of such property.''.
            (2) Requirement for mortgage loans.--Subsection (b) of 
        section 102 of the Flood Disaster Protection Act of 1973 (42 
        U.S.C. 4012a(b)) is amended--
                    (A) by striking paragraph (7);
                    (B) by redesignating paragraph (6) as paragraph 
                (7);
                    (C) by striking the subsection designation and all 
                that follows through the end of paragraph (5) and 
                inserting the following:
    ``(b) Requirement for Mortgage Loans.--
            ``(1) Regulated lending institutions.--Each Federal entity 
        for lending regulation (after consultation and coordination 
        with the Financial Institutions Examination Council established 
        under the Federal Financial Institutions Examination Council 
        Act of 1974) shall by regulation direct regulated lending 
        institutions not to make, increase, extend, or renew any loan 
        secured by improved real estate or a mobile home located or to 
        be located in an area that has been identified by the 
        Administrator as an area having special flood hazards and in 
        which flood insurance has been made available under the 
        National Flood Insurance Act of 1968, unless the building or 
        mobile home and any personal property securing such loan is 
        covered for the term of the loan by flood insurance: Provided, 
        That the amount of flood insurance (A) in the case of Federal 
        flood insurance, is at least equal to the outstanding principal 
        balance of the loan or the maximum limit of Federal flood 
        insurance coverage made available with respect to the 
        particular type of property, whichever is less; or (B) in the 
        case of private flood insurance, is at least equal to the 
        outstanding principal balance of the loan or the maximum limit 
        of Federal flood insurance coverage made available with respect 
        to the particular type of property, whichever is less.
            ``(2) Federal agency lenders and mortgage insurance and 
        guarantee agencies.--
                    ``(A) Federal agency lenders.--A Federal agency 
                lender may not make, increase, extend, or renew any 
                loan secured by improved real estate or a mobile home 
                located or to be located in an area that has been 
                identified by the Administrator as an area having 
                special flood hazards and in which flood insurance has 
                been made available under the National Flood Insurance 
                Act of 1968, unless the building or mobile home and any 
                personal property securing such loan is covered for the 
                term of the loan by flood insurance in accordance with 
                paragraph (1). Each Federal agency lender may issue any 
                regulations necessary to carry out this paragraph. Such 
                regulations shall be consistent with and substantially 
                identical to the regulations issued under paragraph 
                (1).
                    ``(B) Other federal mortgage entities.--
                            ``(i) Coverage requirements.--Each covered 
                        Federal mortgage entity shall implement 
                        procedures reasonably designed to ensure that, 
                        for any loan that--
                                    ``(I) is secured by improved real 
                                estate or a mobile home located in an 
                                area that has been identified, at the 
                                time of the origination of the loan or 
                                at any time during the term of the 
                                loan, by the Administrator as an area 
                                having special flood hazards and in 
                                which flood insurance is available 
                                under the National Flood Insurance Act 
                                of 1968, and
                                    ``(II) is made, insured, held, or 
                                guaranteed by such entity, or backs or 
                                on which is based any trust certificate 
                                or other security for which such entity 
                                guarantees the timely payment of 
                                principal and interest,
                        the building or mobile home and any personal 
                        property securing the loan is covered for the 
                        term of the loan by flood insurance in the 
                        amount provided in paragraph (1).
                            ``(ii) Definition.--For purposes of this 
                        subparagraph, the term `covered Federal 
                        mortgage entity' means--
                                    ``(I) the Secretary of Housing and 
                                Urban Development, with respect to 
                                mortgages insured under the National 
                                Housing Act;
                                    ``(II) the Secretary of 
                                Agriculture, with respect to loans 
                                made, insured, or guaranteed under 
                                title V of the Housing Act of 1949; and
                                    ``(III) the Government National 
                                Mortgage Association.
                    ``(C) Requirement to accept flood insurance.--Each 
                Federal agency lender and each covered Federal mortgage 
                entity shall accept flood insurance as satisfaction of 
                the flood insurance coverage requirement under 
                subparagraph (A) or (B), respectively, if the flood 
                insurance coverage meets the requirements for coverage 
                under such subparagraph and the requirements relating 
                to financial strength issued pursuant to paragraph (4).
            ``(3) Government-sponsored enterprises for housing.--The 
        Federal National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation shall implement procedures reasonably 
        designed to ensure that, for any loan that is--
                    ``(A) secured by improved real estate or a mobile 
                home located in an area that has been identified, at 
                the time of the origination of the loan or at any time 
                during the term of the loan, by the Administrator as an 
                area having special flood hazards and in which flood 
                insurance is available under the National Flood 
                Insurance Act of 1968, and
                    ``(B) purchased or guaranteed by such entity,
        the building or mobile home and any personal property securing 
        the loan is covered for the term of the loan by flood insurance 
        in the amount provided in paragraph (1). The Federal National 
        Mortgage Association and the Federal Home Loan Mortgage 
        Corporation shall accept flood insurance as satisfaction of the 
        flood insurance coverage requirement under paragraph (1) if the 
        flood insurance coverage provided meets the requirements for 
        coverage under that paragraph and the requirements relating to 
        financial strength issued pursuant to paragraph (4).
            ``(4) Requirements regarding financial strength.--The 
        Director of the Federal Housing Finance Agency, in consultation 
        with the Federal National Mortgage Association, the Federal 
        Home Loan Mortgage Corporation, the Secretary of Housing and 
        Urban Development, the Government National Mortgage 
        Association, and the Secretary of Agriculture shall develop and 
        implement requirements relating to the financial strength of 
        private insurance companies from which such entities and 
        agencies will accept private flood insurance, provided that 
        such requirements shall not affect or conflict with any State 
        law, regulation, or procedure concerning the regulation of the 
        business of insurance.
            ``(5) Applicability.--
                    ``(A) Existing coverage.--Except as provided in 
                subparagraph (B), paragraph (1) shall apply on the date 
                of enactment of the Riegle Community Development and 
                Regulatory Improvement Act of 1994.
                    ``(B) New coverage.--Paragraphs (2) and (3) shall 
                apply only with respect to any loan made, increased, 
                extended, or renewed after the expiration of the 1-year 
                period beginning on the date of enactment of the Riegle 
                Community Development and Regulatory Improvement Act of 
                1994. Paragraph (1) shall apply with respect to any 
                loan made, increased, extended, or renewed by any 
                lender supervised by the Farm Credit Administration 
                only after the expiration of the period under this 
                subparagraph.
                    ``(C) Continued effect of regulations.--
                Notwithstanding any other provision of this subsection, 
                the regulations to carry out paragraph (1), as in 
                effect immediately before the date of enactment of the 
                Riegle Community Development and Regulatory Improvement 
                Act of 1994, shall continue to apply until the 
                regulations issued to carry out paragraph (1) as 
                amended by section 522(a) of such Act take effect.
            ``(6) Rule of construction.--Except as otherwise specified, 
        any reference to flood insurance in this section shall be 
        considered to include Federal flood insurance and private flood 
        insurance. Nothing in this subsection shall be construed to 
        supersede or limit the authority of a Federal entity for 
        lending regulation, the Federal Housing Finance Agency, a 
        Federal agency lender, a covered Federal mortgage entity (as 
        such term is defined in paragraph (2)(B)(ii)), the Federal 
        National Mortgage Association, or the Federal Home Loan 
        Mortgage Corporation to establish requirements relating to the 
        financial strength of private insurance companies from which 
        the entity or agency will accept private flood insurance, 
        provided that such requirements shall not affect or conflict 
        with any State law, regulation, or procedure concerning the 
        regulation of the business of insurance.''; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(8) Definitions.--In this section:
                    ``(A) Flood insurance.--The term `flood insurance' 
                means--
                            ``(i) Federal flood insurance; and
                            ``(ii) private flood insurance.
                    ``(B) Federal flood insurance.--The term `Federal 
                flood insurance' means an insurance policy made 
                available under the National Flood Insurance Act of 
                1968 (42 U.S.C. 4001 et seq.).
                    ``(C) Mutual aid society.--The term `mutual aid 
                society' means an organization--
                            ``(i) the members of which--
                                    ``(I) share a common set of ethical 
                                or religious beliefs; and
                                    ``(II) in accordance with the 
                                beliefs described in subclause (I), 
                                agree to cover expenses arising from 
                                damage to property of the members of 
                                the organization, including damage 
                                caused by flooding; and
                            ``(ii) that has a demonstrated history of 
                        fulfilling the terms of agreements to cover 
                        expenses arising from damage to property of the 
                        members of the organization caused by flooding.
                    ``(D) Private flood insurance.--The term `private 
                flood insurance' means--
                            ``(i) an insurance policy that--
                                    ``(I) is issued by an insurance 
                                company that is--
                                            ``(aa) licensed, admitted, 
                                        or otherwise approved to engage 
                                        in the business of insurance in 
                                        the State in which the insured 
                                        building is located, by the 
                                        insurance regulator of that 
                                        State; or
                                            ``(bb) eligible as a 
                                        nonadmitted insurer to provide 
                                        insurance in the home State of 
                                        the insured, in accordance with 
                                        sections 521 through 527 of the 
                                        Dodd-Frank Wall Street Reform 
                                        and Consumer Protection Act (15 
                                        U.S.C. 8201 through 8206);
                                    ``(II) is issued by an insurance 
                                company that is not otherwise 
                                disapproved as a surplus lines insurer 
                                by the insurance regulator of the State 
                                in which the property to be insured is 
                                located; and
                                    ``(III) provides flood insurance 
                                coverage that complies with the laws 
                                and regulations of that State; or
                            ``(ii) an agreement with a mutual aid 
                        society for such society to cover expenses 
                        arising from damage to property of the members 
                        of such society caused by flooding, unless the 
                        State in which the property to be insured is 
                        located has--
                                    ``(I) determined that the specific 
                                mutual aid society may not provide such 
                                coverage or provide such coverage in 
                                such manner; or
                                    ``(II) specifically provided 
                                through law or regulation that mutual 
                                aid societies may not provide such 
                                coverage or provide such coverage in 
                                such manner.
                    ``(E) State.--The term `State' means any State of 
                the United States, the District of Columbia, the 
                Commonwealth of Puerto Rico, Guam, the Northern Mariana 
                Islands, the Virgin Islands, and American Samoa.''.
    (b) Effect of Private Flood Insurance Coverage on Continuous 
Coverage Requirements.--Section 1308 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following:
    ``(o) Effect of Private Flood Insurance Coverage on Continuous 
Coverage Requirements.--For purposes of applying any statutory, 
regulatory, or administrative continuous coverage requirement, 
including under section 1307(g)(1), the Administrator shall consider 
any period during which a property was continuously covered by private 
flood insurance (as defined in section 102(b)(8) of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)(8))) to be a period of 
continuous coverage.''.

SEC. 202. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR COMMERCIAL 
              PROPERTIES.

    (a) Amendments to Flood Disaster Protection Act of 1973.--Effective 
on January 1, 2019, the Flood Disaster Protection Act of 1973, as 
amended by the preceding provisions of this Act, is further amended--
            (1) in section 3(a) (42 U.S.C. 4003(a))--
                    (A) in paragraph (10), by striking ``and'' at the 
                end;
                    (B) in paragraph (11), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(12) `residential improved real estate' means improved 
        real estate that--
                    ``(A) is primarily used for residential purposes, 
                as defined by the Federal entities for lending 
                regulation; and
                    ``(B) secures financing or financial assistance 
                provided through a federally related single family loan 
                program, as defined by the Federal entities for lending 
                regulation.''; and
            (2) in section 102 (42 U.S.C. 4012a)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate''; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home'';
                            (ii) in paragraph (2)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate'' each 
                                place such term appears; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home'' each 
                                place such term appears; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                inserting ``residential'' before 
                                ``improved real estate''; and
                                    (II) in the matter after and below 
                                subparagraph (B), by inserting 
                                ``residential'' before ``building or 
                                mobile home'';
                    (B) in subsection (c)(3), by striking ``, in the 
                case of any residential property, for any structure 
                that is a part of such property'' and inserting ``for 
                any structure that is a part of a residential 
                property'';
                    (C) in subsection (e)--
                            (i) in paragraph (1)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate''; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home'' each 
                                place such term appears; and
                            (ii) in paragraph (5)--
                                    (I) in subparagraph (A)--
                                            (aa) by inserting 
                                        ``residential'' before 
                                        ``improved real estate'' each 
                                        place such term appears; and
                                            (bb) by inserting 
                                        ``residential'' before 
                                        ``building or mobile home'' 
                                        each place such term appears;
                                    (II) in subparagraph (B), by 
                                inserting ``residential'' before 
                                ``building or mobile home'' each place 
                                such term appears; and
                                    (III) in subparagraph (C), by 
                                inserting ``residential'' before 
                                ``building or mobile home''; and
                    (D) in subsection (h)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate'' each place such term 
                        appears; and
                            (ii) in the matter preceding paragraph (1), 
                        by inserting ``residential'' before ``building 
                        or mobile home''.
    (b) Amendments to National Flood Insurance Act of 1968.--Effective 
on January 1, 2019, the National Flood Insurance Act of 1968, as 
amended by the preceding provisions of this Act, is further amended--
            (1) in section 1364(a) (42 U.S.C. 4104a(a))--
                    (A) in paragraph (1), by inserting ``residential'' 
                before ``improved real estate'';
                    (B) in paragraph (2), by inserting ``residential'' 
                before ``improved real estate''; and
                    (C) in paragraph (3)(A), by inserting 
                ``residential'' before ``building'';
            (2) in section 1365 (42 U.S.C. 4104b)--
                    (A) in subsection (a)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate''; and
                            (ii) by inserting ``residential'' before 
                        ``building'';
                    (B) in subsection (b)(2)--
                            (i) by inserting ``residential'' before 
                        ``building'' each place such term appears; and
                            (ii) by inserting ``residential'' before 
                        ``improved real estate'' each place such term 
                        appears;
                    (C) in subsection (d), by inserting ``residential'' 
                before ``improved real estate'' each place such term 
                appears; and
                    (D) in subsection (e)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate''; and
                            (ii) by inserting ``residential'' before 
                        ``building'' each place such term appears; and
            (3) in section 1370 (42 U.S.C. 4121)--
                    (A) in paragraph (8), by inserting ``residential'' 
                before ``improved real estate'';
                    (B) by redesignating paragraphs (14) through (17) 
                as paragraphs (15) through (18), respectively; and
                    (C) by inserting after paragraph (13) the following 
                new paragraph:
            ``(14) the term `residential improved real estate' means 
        improved real estate that--
                    ``(A) is primarily used for residential purposes, 
                as defined by the Federal entities for lending 
                regulation; and
                    ``(B) secures financing or financial assistance 
                provided through a federally related single family loan 
                program, as defined by the Federal entities for lending 
                regulation;''.
    (c) Rule of Construction.--This section and the amendments made by 
this section may not be construed to prohibit the Administrator of the 
Federal Emergency Management Agency from offering flood insurance 
coverage under the National Flood Insurance Program for eligible non-
residential properties, other residential multifamily properties, or 
structures financed with commercial loans, or to prohibit the purchase 
of such coverage for such eligible properties.

SEC. 203. ELIMINATION OF NON-COMPETE REQUIREMENT.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(f) Authority To Provide Other Flood Coverage.--
            ``(1) In general.--The Administrator may not, as a 
        condition of participating in the Write Your Own Program (as 
        such term is defined in section 1370(a)) or in otherwise 
        participating in the utilization by the Administrator of the 
        facilities and services of insurance companies, insurers, 
        insurance agents and brokers, and insurance adjustment 
        organizations pursuant to the authority in this section, nor as 
        a condition of eligibility to engage in any other activities 
        under the National Flood Insurance Program under this title, 
        restrict any such company, insurer, agent, broker, or 
        organization from offering and selling private flood insurance 
        (as such term is defined in section 102(b)(9) of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).
            ``(2) Financial assistance/subsidy arrangement.--After the 
        date of the enactment of this subsection--
                    ``(A) the Administrator may not include in any 
                agreement entered into with any insurer for 
                participation in the Write Your Own Program any 
                provision establishing a condition prohibited by 
                paragraph (1), including the provisions of Article XIII 
                of the Federal Emergency Management Agency, Federal 
                Insurance Administration, Financial Assistance/Subsidy 
                Arrangement, as adopted pursuant to section 62.23(a) of 
                title 44 of the Code of Federal Regulations; and
                    ``(B) any such provision in any such agreement 
                entered into before such date of enactment shall not 
                have any force or effect, and the Administrator may not 
                take any action to enforce such provision.''.

SEC. 204. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.) is amended by adding at the end the following 
new section:

``SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

    ``(a) Flood Risk Information.--
            ``(1) In general.--Except as provided in paragraph (2), to 
        facilitate the National Flood Insurance Program becoming a 
        source of information and data for research and development of 
        technology that better understands flooding, the risk of 
        flooding, and the predictability of perils of flooding, the 
        Administrator shall make publicly available all data, models, 
        assessments, analytical tools, and other information in the 
        possession of the Administrator relating to the National Flood 
        Insurance Program under this title that is used in assessing 
        flood risk or identifying and establishing flood elevations and 
        premiums, including--
                    ``(A) data relating to risk on individual 
                properties and loss ratio information and other 
                information identifying losses under the program;
                    ``(B) current and historical policy information, 
                limited to the amount and term only, for properties 
                currently covered by flood insurance and for properties 
                that are no longer covered by flood insurance;
                    ``(C) current and historical claims information, 
                limited to the date and amount paid only, for 
                properties currently covered by flood insurance and for 
                properties that are no longer covered by flood 
                insurance;
                    ``(D) identification of whether a property was 
                constructed before or after the effective date of the 
                first flood insurance rate map for a community;
                    ``(E) identification of properties that have been 
                mitigated through elevation, a buyout, or any other 
                mitigation action; and
                    ``(F) identification of unmitigated multiple-loss 
                properties.
            ``(2) Open source data system.--In carrying out paragraph 
        (1), the Administrator shall establish an open source data 
        system by which all information required to be made publicly 
        available by such subsection may be accessed by the public on 
        an immediate basis by electronic means.
    ``(b) Community Information.--Not later than the expiration of the 
12-month period beginning upon the date of the enactment of this 
section, the Administrator shall establish and maintain a publicly 
searchable database that provides information about each community 
participating in the National Flood Insurance Program, which shall 
include the following information:
            ``(1) The status of the community's compliance with the 
        National Flood Insurance Program, including any findings of 
        noncompliance, the status of any enforcement actions initiated 
        by a State or by the Administrator, and the number of days of 
        any such continuing noncompliance.
            ``(2) The number of properties located in the community's 
        special flood hazard areas that were built before the effective 
        date of the first flood insurance rate map for the community.
            ``(3) The number of properties located in the community's 
        special flood hazard areas that were built after the effective 
        date of the first flood insurance rate map for the community.
            ``(4) The total number of current and historical claims 
        located outside the community's special flood hazard areas.
            ``(5) The total number of multiple-loss properties in the 
        community.
            ``(6) The portion of the community, stated as a percentage 
        and in terms of square miles, that is located within special 
        flood hazard areas.
    ``(c) Identification of Properties.--The information provided 
pursuant to subsections (a) and (b) shall be based on data that 
identifies properties at the zip code or census block level, and shall 
include the name of the community and State in which a property is 
located.
    ``(d) Protection of Personally Identifiable Information.--The 
information provided pursuant to subsections (a) and (b) shall be 
disclosed in a format that does not reveal individually identifiable 
information about property owners in accordance with the section 552a 
of title 5, United States Code.
    ``(e) Definition of Loss Ratio.--For purposes of this section, the 
term `loss ratio' means, with respect to the National Flood Insurance 
Program, the ratio of the amount of claims paid under the Program to 
the amount of premiums paid under the Program.''.

SEC. 205. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY BECAUSE OF 
              REPLACEMENT WITH PRIVATE FLOOD INSURANCE.

    Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4013) is amended by adding at the end the following new subsection:
    ``(e) Refund of Unearned Premiums for Policies Canceled Because of 
Replacement With Private Flood Insurance.--
            ``(1) Required refund.--Subject to subsection (c), if at 
        any time an insured under a policy for flood insurance coverage 
        for a property that is made available under this title cancels 
        such policy because other duplicate flood insurance coverage 
        for the same property has been obtained from a source other 
        than the National Flood Insurance Program under this title, the 
        Administrator shall refund to the former insured a portion of 
        the premiums paid for the coverage made available under this 
        title, as determined consistent with industry practice 
        according to the portion of the term of the policy that such 
        coverage was in effect, but only if a copy of declarations page 
        of the new policy obtained from a source other than the program 
        under this title is provided to the Administrator.
            ``(2) Effective date of cancellation.--For purposes of this 
        subsection, a cancellation of a policy for coverage made 
        available under the national flood insurance program under this 
        title, for the reason specified in paragraph (1), shall be 
        effective--
                    ``(A) on the effective date of the new policy 
                obtained from a source other than the program under 
                this title, if the request for such cancellation was 
                received by the Administrator before the expiration of 
                the 6-month period beginning on the effective date of 
                the new policy; or
                    ``(B) on the date of the receipt by the 
                Administrator of the request for cancellation, if the 
                request for such cancellation was received by the 
                Administrator after the expiration of the 6-month 
                period beginning on the effective date of the new 
                policy.
            ``(3) Prohibition of refunds for properties receiving 
        increased cost of compliance claims.--No premium amounts paid 
        for coverage made available under this title may be refunded 
        pursuant to this subsection--
                    ``(A) with respect to coverage for any property for 
                which measures have been implemented using amounts 
                received pursuant to a claim under increased cost of 
                compliance coverage made available pursuant to section 
                1304(b); or
                    ``(B) if a claim has been paid or is pending under 
                the policy term for which the refund is sought.''.

SEC. 206. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to analyze the feasibility and effectiveness, and 
problems involved, in reducing flood insurance premiums and eliminating 
the need for purchase of flood insurance coverage by authorizing owners 
of residential properties to establish flood damage savings accounts 
described in subsection (b) in lieu of complying with the mandatory 
requirements under section 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a) to purchase flood insurance for such properties.
    (b) Flood Damage Savings Account.--A flood damage savings account 
described in this subsection is a savings account--
            (1) that would be established by an owner of residential 
        property with respect to such property in accordance with 
        requirements established by the Administrator of the Federal 
        Emergency Management Agency; and
            (2) the proceeds of which would be available for use only 
        to cover losses to such properties resulting from flooding, 
        pursuant to adjustment of a claim for such losses in the same 
        manner and according to the same procedures as apply to claims 
        for losses under flood insurance coverage made available under 
        the National Flood Insurance Act of 1968.
    (c) Issues.--Such study shall include an analysis of, and 
recommendation regarding, each of the following issues:
            (1) Whether authorizing the establishment of such flood 
        damage savings accounts would be effective and efficient in 
        reducing flood insurance premiums, eliminating the need for 
        purchase of flood insurance coverage made available under the 
        National Flood Insurance Program, and reducing risks to the 
        financial safety and soundness of the National Flood Insurance 
        Fund.
            (2) Possible options for structuring such flood damage 
        savings accounts, including--
                    (A) what types of institutions could hold such 
                accounts and the benefits and problems with each such 
                type of institution;
                    (B) considerations affecting the amounts required 
                to be held in such accounts; and
                    (C) options regarding considerations the conditions 
                under which such an account may be terminated.
            (3) The feasibility and effectiveness, and problems 
        involved in, authorizing the Administrator of the Federal 
        Emergency Management Agency to make secondary flood insurance 
        coverage available under the National Flood Insurance Program 
        to cover the portion of flood losses or damages to properties 
        for which such flood damage savings accounts have been 
        established that exceed the amounts held in such accounts.
            (4) The benefits and problems involved in authorizing the 
        establishment of such accounts for non-residential properties.
    (d) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Committee on Financial Services of 
the House of Representatives, the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Administrator that sets forth the 
analysis, conclusions, and recommendations resulting from the study 
under this section. Such report shall identify elements that should be 
taken into consideration by the Administrator in designing and carrying 
out the demonstration program under section 207.

SEC. 207. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS ACCOUNTS.

    (a) Plan.--If the Comptroller General of the United States 
concludes in the report required under section 206 that a demonstration 
program under this section is feasible and should be considered, then 
the Administrator of the Federal Emergency Management Agency shall, not 
later than the expiration of the 12-month period beginning upon the 
submission of the report under section 206(d), submit to the Committee 
on Financial Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate a plan and 
guidelines for a demonstration program, to be carried out by the 
Administrator, to demonstrate the feasibility and effectiveness of 
authorizing the establishment of flood damage savings accounts, taking 
into consideration the analysis, conclusions, and recommendations 
included in such report.
    (b) Authority.--The Administrator of the Federal Emergency 
Management Agency shall carry out a program to demonstrate the 
feasibility and effectiveness of authorizing the establishment of flood 
damage savings accounts in the manner provided in plan and guidelines 
for the demonstration program submitted pursuant to subsection (a).
    (c) Scope.--The demonstration program under this section shall 
provide for the establishment of flood damage savings accounts with 
respect to not more than 5 percent of the residential properties that 
have 4 or fewer residences and that are covered by flood insurance 
coverage made available under the National Flood Insurance Program.
    (d) Timing.--The Administrator shall commence the demonstration 
program under this section not later than the expiration of the 12-
month period beginning upon the submission of the plan and guidelines 
for the demonstration pursuant to subsection (a).
    (e) Geographical Diversity.--The Administrator shall ensure that 
properties for which flood damage savings accounts are established 
under the demonstration are located in diverse geographical areas 
throughout the United States.
    (f) Report.--Upon the expiration of the 2-year period beginning 
upon the date of the commencement of the demonstration program under 
this section, the Administrator shall submit a report to the Committee 
on Financial Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate describing and 
assessing the demonstration, and setting forth conclusions and 
recommendations regarding continuing and expanding the demonstration.
    (g) Feasibility.--The Administrator shall implement this section 
only after determining that implementation is supported by the 
Comptroller's conclusions and recommendations contained in the report 
required under section 206.

                      TITLE III--MAPPING FAIRNESS

SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING PREMIUM 
              RATES.

    (a) Estimates of Premium Rates.--Subparagraph (A) of section 
1307(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4014(a)(1)(A)), as amended by the preceding provisions of this Act, is 
further amended--
            (1) in clause (ii), by striking ``and'' at the end; and
            (2) by adding at the end the following new clause:
                            ``(iv) both the risk identified by the 
                        applicable flood insurance rate maps and by 
                        other risk assessment data and tools, including 
                        risk assessment models and scores from 
                        appropriate sources; and''.
    (b) Establishment of Chargeable Premium Rates.--Paragraph (1) of 
section 1308(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting before the semicolon at the end the 
following: ``, taking into account both the risk identified by the 
applicable flood insurance rate maps and by other risk assessment data 
and tools, including risk assessment models and scores from appropriate 
sources''.
    (c) Effective Date and Regulations.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall be made, and shall take effect, upon the 
        expiration of the 36-month period beginning on the date of the 
        enactment of this Act.
            (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall issue regulations necessary 
        to implement the amendments made by subsections (a) and (b), 
        which shall identify risk assessment data and tools to be used 
        in identifying flood risk and appropriate sources for risk 
        assessment models and scores to be so used. Such regulations 
        shall be issued not later than the expiration of the 36-month 
        period beginning on the date of the enactment of this Act and 
        shall take effect upon the expiration of such period.

SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.

    (a) In General.--Section 1360 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101) is amended by adding at the end the following 
new subsection:
    ``(k) Appeals of Existing Maps.--
            ``(1) Right to appeal.--Subject to paragraph (6), a State 
        or local government, or the owner or lessee of real property, 
        who has made a formal request to the Administrator to update a 
        flood map that the Administrator has denied may at any time 
        appeal such a denial as provided in this subsection.
            ``(2) Basis for appeal.--The basis for appeal under this 
        subsection shall be the possession of knowledge or information 
        that--
                    ``(A) the base flood elevation level or designation 
                of any aspect of a flood map is scientifically or 
                technically inaccurate; or
                    ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, vegetation, 
                levees, lakes, dams, reservoirs, basin, retention 
                ponds, and other natural or manmade topographical 
                features.
            ``(3) Appeals process.--
                    ``(A) Administrative adjudication.--An appeal under 
                this subsection shall be determined by a final 
                adjudication on the record, and after opportunity for 
                an administrative hearing.
                    ``(B) Rights upon adverse decision.--If an appeal 
                pursuant to subparagraph (A) does not result in a 
                decision in favor of the State, local government, 
                owner, or lessee, such party may appeal the adverse 
                decision to the Scientific Resolution Panel provided 
                for in section 1363A, which shall recommend a non-
                binding decision to the Administrator.
            ``(4) Relief.--
                    ``(A) Wholly successful appeals.--In the case of a 
                successful appeal resulting in a policyholder's 
                property being removed from a special flood hazard 
                area, such policyholder may cancel the policy at any 
                time within the current policy year, and the 
                Administrator shall provide such policyholder a refund 
                in the amount of any premiums paid for such policy 
                year, plus any premiums paid for flood insurance 
                coverage that the policyholder was required to purchase 
                or maintain during the 2-year period preceding such 
                policy year.
                    ``(B) Partially successful appeals.--In the case of 
                any appeal in which mitigating factors were determined 
                to have reduced, but not eliminated, the risk of 
                flooding, the Administrator shall reduce the amount of 
                flood insurance coverage required to be maintained for 
                the property concerned by the ratio of the successful 
                portion of the appeal as compared to the entire appeal. 
                The Administrator shall refund to the policyholder any 
                payments made in excess of the amount necessary for 
                such new coverage amount, effective from the time when 
                the mitigating factor was created or the beginning of 
                the second policy year preceding the determination of 
                the appeal, whichever occurred later.
                    ``(C) Additional relief.--The Administrator may 
                provide additional refunds in excess of the amounts 
                specified in subparagraphs (A) and (B) if the 
                Administrator determines that such additional amounts 
                are warranted.
            ``(5) Recovery of costs.--When, incident to any appeal 
        which is successful in whole or part regarding the designation 
        of the base flood elevation or any aspect of the flood map, 
        including elevation or designation of a special flood hazard 
        area, the community, or the owner or lessee of real property, 
        as the case may be, incurs expense in connection with the 
        appeal, including services provided by surveyors, engineers, 
        and scientific experts, the Administrator shall reimburse such 
        individual or community for reasonable expenses to an extent 
        measured by the ratio of the successful portion of the appeal 
        as compared to the entire appeal, but not including legal 
        services, in the effecting of an appeal based on a scientific 
        or technical error on the part of the Federal Emergency 
        Management Agency. No reimbursement shall be made by the 
        Administrator in respect to any fee or expense payment, the 
        payment of which was agreed to be contingent upon the result of 
        the appeal. The Administrator may use such amounts from the 
        National Flood Insurance Fund established under section 1310 as 
        may be necessary to carry out this paragraph.
            ``(6) Inapplicability to community flood maps.--This 
        subsection shall not apply with respect to any flood map that 
        is in effect pursuant to certification under the standards, 
        guidelines, and procedures established pursuant to section 
        100215(m)(1)(B) of the Biggert-Waters Flood Insurance Reform 
        Act of 2012 (42 U.S.C. 4101a(m)(1)(B)).
            ``(7) Guidance.--The Administrator shall issue guidance to 
        implement this subsection, which shall not be subject to the 
        notice and comment requirements under section 553 of title 5, 
        United States Code.''.
    (b) Deadline.--The Administrator of the Federal Emergency 
Management Agency shall issue the guidance referred to section 
1360(k)(7) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(k)(7)), as added by the amendment made by subsection (a) of this 
section, not later than the expiration of the 6-month period beginning 
on the date of the enactment of this Act.

SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD HAZARD 
              AREAS.

    (a) Appeals.--Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended--
            (1) in subsection (b), by striking the second sentence and 
        inserting the following: ``Any owner or lessee of real property 
        within the community who believes the owner's or lessee's 
        rights to be adversely affected by the Administrator's proposed 
        determination may appeal such determination to the local 
        government no later than 90 days after the date of the second 
        publication.'';
            (2) in subsection (d), by striking ``subsection (e)'' and 
        inserting ``subsection (f)'';
            (3) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (4) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Determination by Administrator in the Absence of Appeals.--If 
the Administrator has not received any appeals, upon expiration of the 
90-day appeal period established under subsection (b) of this section 
the Administrator's proposed determination shall become final. The 
community shall be given a reasonable time after the Administrator's 
final determination in which to adopt local land use and control 
measures consistent with the Administrator's determination.''.
    (b) Publication.--Subsection (a) of section 1363 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is amended by striking 
``in the Federal Register''.
    (c) Inapplicability to Private and Community Flood Maps.--Section 
1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104), as 
amended by the preceding provisions of this section, is further amended 
by adding at the end the following new subsection:
    ``(i) Inapplicability to Community Flood Maps.--This section shall 
not apply with respect to any flood map that is in effect pursuant to 
certification under the standards, guidelines, and procedures 
established pursuant to section 100215(m)(1) of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101a(m)(1)), which shall 
include procedures for providing notification and appeal rights to 
individuals within the communities of the proposed flood elevation 
determinations.''.

SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.

    Paragraph (1) of section 100216(d) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is amended--
            (1) in subparagraph (B), by inserting ``maximum'' before 
        ``30-day period''; and
            (2) in subparagraph (C), by inserting ``maximum'' before 
        ``30-day period''.

SEC. 305. SHARING AND USE OF MAPS AND DATA.

    Subsection (b) of section 100216 of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and'' ; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) consult and coordinate with the Department of 
                Defense, the United States Geological Survey, and the 
                National Oceanic and Atmospheric Administration for the 
                purpose of obtaining the most-up-to-date maps and other 
                information of such agencies, including information on 
                topography, water flow, and any other issues, relevant 
                to mapping for flood insurance purposes.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) any other information relevant to mapping for 
                flood insurance purposes obtained pursuant to paragraph 
                (1)(D); and''.

SEC. 306. COMMUNITY FLOOD MAPS.

    (a) Technical Mapping Advisory Council.--Section 100215 of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101a) is 
amended--
            (1) in subsection (c)--
                    (A) in paragraph (5)(B), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (6) as paragraph 
                (9); and
                    (C) by inserting after paragraph (5) the following 
                new paragraphs:
            ``(6) recommend to the Administrator methods or actions to 
        make the flood mapping processes more efficient;
            ``(7) recommend to the Administrator methods or actions to 
        minimize any cost, data, and paperwork requirements of the 
        flood mapping processes;
            ``(8) assist communities, and in particular smaller 
        communities, in locating the resources required to participate 
        in the development of flood elevations and flood hazard area 
        designations; and''; and
            (2) by adding at the end the following new subsection:
    ``(m) Community Flood Maps.--
            ``(1) Standards and procedures.--In addition to the other 
        duties of the Council under this section, not later than the 
        expiration of the 12-month period beginning on the date of the 
        enactment of this subsection, the Council shall recommend to 
        the Administrator standards and requirements for chief 
        executive officers, or entities designated by chief executive 
        officers, of States and communities participating in the 
        National Flood Insurance Program to use in mapping flood 
        hazards located in States and communities that choose to 
        develop alternative maps to the flood insurance rate maps 
        developed by the Agency. The recommended standards and 
        requirements shall include procedures for providing 
        notification and appeal rights to individuals within the 
        communities of the proposed flood elevation determinations.
            ``(2) Exemption from rulemaking.--Until such time as the 
        Administrator promulgates regulations implementing paragraph 
        (1) of this subsection, the Administrator may, notwithstanding 
        any other provision of law, adopt policies and procedures 
        necessary to implement such paragraphs without undergoing 
        notice and comment rulemaking and without conducting regulatory 
        analyses otherwise required by statute, regulation, or 
        executive order.''.
    (b) FEMA Identification of Flood-prone Areas.--Subsection (a) of 
section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(a)) is amended--
            (1) in paragraph (2), by striking the period at the end and 
        inserting ``; and'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A), and (B), respectively, and realigning such 
        subparagraphs so as to be indented 4 ems from the left margin;
            (3) by striking ``is authorized to consult'' and inserting 
        the following: ``is authorized--
            ``(1) to consult'';
            (4) by adding at the end the following new paragraph:
            ``(2) to receive proposed alternative maps from communities 
        developed pursuant to standards and requirements recommended by 
        the Technical Mapping Advisory Council, as required by section 
        100215(m) of the Biggert-Waters Flood Insurance Reform Act of 
        2012 (42 U.S.C. 4101a(m)) and adopted by the Administrator as 
        required by section 100216(c)(3) of such Act (42 U.S.C. 
        4101b(c)(3)), so that the Administrator may--
                    ``(A) publish information with respect to all flood 
                plain areas, including coastal areas located in the 
                United States, which have special flood hazards, and
                    ``(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 of these areas until the date 
                specified in section 1319.''.
    (c) National Flood Mapping Program.--Section 100216 of the Biggert-
Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b) is 
amended--
            (1) in subsection (a), by inserting ``prepared by the 
        Administrator, or by a community pursuant to section 1360(a)(2) 
        of the National Flood Insurance Act of 1968,'' after ``Program 
        rate maps''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (2)(C), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) establish and adopt standards and requirements for 
        development by States and communities of alternative flood 
        insurance rate maps to be submitted to the Administrator 
        pursuant to section 1360(a)(2) of the National Flood Insurance 
        Act of 1968, taking into consideration the recommendations of 
        the Technical Mapping Advisory Council made pursuant to section 
        100215(m) of this Act (42 U.S.C. 4101a(m)); and
            ``(4) in the case of proposed alternative maps received by 
        the Administrator pursuant to such section 1360(a)(2), not 
        later than the expiration of the 6-month period beginning upon 
        receipt of such proposed alternative maps--
                    ``(A) determine whether such maps were developed in 
                accordance with the standards and requirements adopted 
                pursuant to paragraph (3) of this subsection; and
                    ``(B) approve or disapprove such proposed maps for 
                use under National Flood Insurance Program.''.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM CREDITS TO 
              MAXIMUM NUMBER OF COMMUNITIES PRACTICABLE.

    Subsection (b) of section 1315 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4022(b)) is amended--
            (1) in paragraph (2), by striking ``may'' and inserting 
        ``shall''; and
            (2) in paragraph (3), by inserting ``, and the 
        Administrator shall provide credits to the maximum number of 
        communities practicable'' after ``under this program''.

SEC. 402. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED AREAS.

    (a) In General.--Section 1361 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102) is amended by adding at the end the following 
new subsection:
    ``(e) Community Accountability for Repetitively Damaged Areas.--
            ``(1) In general.--The Administrator shall, by regulation, 
        require any covered community (as such term is defined in 
        paragraph (5))--
                    ``(A) to identify the areas within the community 
                where properties described in paragraph (5)(B) or 
                flood-damaged facilities are located to determine areas 
                repeatedly damaged by floods and to assess, with 
                assistance from the Administrator, the continuing risks 
                to such areas;
                    ``(B) to develop a community-specific plan for 
                mitigating continuing flood risks to such repetitively 
                flooded areas and to submit such plan and plan updates 
                to the Administrator at appropriate intervals;
                    ``(C) to implement such plans;
                    ``(D) to make such plan, plan updates, and reports 
                on progress in reducing flood risk available to the 
                public, subject to section 552a of title 5, United 
                States Code.
            ``(2) Incorporation into existing plans.--Plans developed 
        pursuant to paragraph (1) may be incorporated into mitigation 
        plans developed under section 1366 of this Act (42 U.S.C. 
        4104c) and hazard mitigation plans developed under section 322 
        of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5165).
            ``(3) Assistance to communities.--
                    ``(A) Data.--To assist communities in preparation 
                of plans required under paragraph (1), the 
                Administrator shall, upon request, provide covered 
                communities with appropriate data regarding the 
                property addresses and dates of claims associated with 
                insured properties within the community.
                    ``(B) Mitigation grants.--In making determinations 
                regarding financial assistance under the authorities of 
                this Act, the Administrator may consider the extent to 
                which a community has complied with this subsection and 
                is working to remedy problems with addressing 
                repeatedly flooded areas.
            ``(4) Sanctions.--
                    ``(A) In general.--The Administrator shall, by 
                regulations issued in accordance with the procedures 
                established under section 553 of title 5, United States 
                Code, regarding substantive rules, provide appropriate 
                sanctions for covered communities that fail to comply 
                with the requirements under this subsection or to make 
                sufficient progress in reducing the flood risks to 
                areas in the community that are repeatedly damaged by 
                floods.
                    ``(B) Notice.--Before imposing any sanction 
                pursuant to this paragraph, the Administrator shall 
                provide the covered community involved with notice of 
                the non-compliance that could result in the imposition 
                of sanctions, which shall include recommendations for 
                actions to bring the covered community into compliance.
                    ``(C) Considerations.--In determining appropriate 
                sanctions to impose under this paragraph, the 
                Administrator shall consider the resources available to 
                the covered community involved, including Federal 
                funding, the portion of the covered community that lies 
                within an area having special flood hazards, and other 
                factors that make it difficult for the covered 
                community to conduct mitigation activities for existing 
                flood-prone structures.
            ``(5) Covered community.--For purposes of this subsection, 
        the term `covered community' means a community--
                    ``(A) that is participating, pursuant to section 
                1315, in the national flood insurance program; and
                    ``(B) within which are located--
                            ``(i) 50 or more repetitive loss structures 
                        for each of which, during any 10-year period, 
                        two or more claims for payments under flood 
                        insurance coverage have been made with a 
                        cumulative amount exceeding $1,000;
                            ``(ii) 5 or more severe repetitive loss 
                        structures (as such term is defined in section 
                        1366(h)) for which mitigation activities 
                        meeting the standards for approval under 
                        section 1366(c)(2)(A) have not been conducted; 
                        or
                            ``(iii) a public facility or a private 
                        nonprofit facility (as such terms are as 
                        defined in section 102 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5122)), that has 
                        received assistance for repair, restoration, 
                        reconstruction, or replacement under section 
                        406 of the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act (42 U.S.C. 5172) 
                        in connection with more than one flooding event 
                        in the most recent 10-year period.
            ``(6) Repetitive-loss structure.--For purposes of this 
        subsection, the term `repetitive loss structure' has the 
        meaning given such term in section 1370 (42 U.S.C. 4121).
            ``(7) Reports to congress.--Not later than the expiration 
        of the 6-year period beginning upon the date of the enactment 
        of this subsection, and not less than every 2 years thereafter, 
        the Administrator shall submit a report to the Congress 
        regarding the progress in implementing plans developed pursuant 
        to paragraph (1)(B).''.
    (b) Regulations.--The Administrator of the Federal Emergency 
Management Agency shall issue regulations necessary to carry out 
subsection (e) of section 1361 of the National Flood Insurance Act of 
1968, as added by the amendment made by subsection (a) of this section, 
not later than the expiration of the 12-month period that begins on the 
date of the enactment of this Act.

SEC. 403. INCREASED COST OF COMPLIANCE COVERAGE.

    (a) Coverage of Properties at High Risk of Future Flood Damage.--
Subsection (b) of section 1304 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011(b)) is amended--
            (1) in paragraph (4), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively, and 
        realigning such clauses, as so redesignated, so as to be 
        indented 6 ems from the left margin;
            (2) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and realigning 
        such subparagraphs, as so redesignated, so as to be indented 4 
        ems from the left margin;
            (3) by striking the subsection designation and all that 
        follows through ``The national'' and inserting the following:
    ``(b) Additional Coverage for Compliance With Land Use and Control 
Measures.--
            ``(1) Authority; eligible properties.--The national'';
            (4) in subparagraph (C) (as so redesignated by paragraph 
        (2) of this subsection), by striking ``Fund'' and all that 
        follows and inserting ``Fund to require the implementation of 
        such measures;'';
            (5) in subparagraph (D)(iv) (as so redesignated by 
        paragraphs (1) and (2) of this subsection), by striking the 
        period at the end and inserting a semicolon; and
            (6) by adding at the end the following new subparagraphs:
                    ``(E) properties that have been identified by the 
                Administrator, or by a community in accordance with 
                such requirements as the Administrator shall establish, 
                as at a high risk of future flood damage; and
                    ``(F) properties that are located within an area 
                identified pursuant to section 1361(e)(1)(A) (42 U.S.C. 
                4102(e)(1)(A)) by a covered community (as such term is 
                defined in paragraph (3) of such section 1361(e)).''.
    (b) Coverage Amount.--Section 1304(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
            (1) in paragraph (1) (as so designated by subsection (a)(3) 
        of this section), by striking the last sentence (relating to a 
        surcharge); and
            (2) by adding at the end the following new paragraph:
            ``(2) Coverage amount.--
                    ``(A) Primary coverage.--Each policy for flood 
                insurance coverage made available under this title 
                shall provide coverage under this subsection having an 
                aggregate liability for any single property of $30,000.
                    ``(B) Enhanced coverage.--The Administrator shall 
                make additional coverage available under this 
                subsection, in excess of the limit specified in 
                subparagraph (A), having an aggregate liability for any 
                single property of up to $60,000.''.
    (c) Amount of Surcharge.--Subsection (b) of section 1304 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), as amended by 
the preceding provisions of this section, is further amended by adding 
at the end the following new paragraph:
            ``(3) Surcharge for coverage.--
                    ``(A) Primary coverage.--The Administrator shall 
                impose a surcharge on each insured of such amount per 
                policy as the Administrator determines is appropriate 
                to provide cost of compliance coverage in accordance 
                with paragraph (2)(A).
                    ``(B) Enhanced coverage.--For each flood policy for 
                flood insurance coverage under this title under which 
                additional cost of compliance coverage is provided 
                pursuant to paragraph (2)(B), the Administrator shall 
                impose a surcharge, in addition to the surcharge under 
                subparagraph (A) of this paragraph, in such amount as 
                the Administrator determines is appropriate for the 
                amount of such coverage provided.''.
    (d) Use of Certain Materials.--Subsection (b) of section 1304 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), as 
amended by the preceding provisions of this section, is further amended 
by adding at the end the following new paragraph:
            ``(4) Use of certain materials.--The Administrator shall 
        require that any measures implemented using amounts made 
        available from coverage provided pursuant to this subsection be 
        carried out using materials, identified by the Administrator, 
        that minimize the impact of flooding on the usability of the 
        covered property and reduce the duration that flooding renders 
        the property unusable or uninhabitable.''.
    (e) Continued Flood Insurance Requirement.--Subsection (b) of 
section 1304 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011(b)), as amended by the preceding provisions of this section, is 
further amended by adding at the end the following new paragraph:
            ``(5) Continued flood insurance requirement.--The 
        Administrator may require, as a condition of providing cost of 
        compliance coverage under this subsection for a property, that 
        the owner of the property enter into such binding agreements as 
        the Administrator considers necessary to ensure that the owner 
        of the property (and any subsequent owners) will maintain flood 
        insurance coverage under this title for the property in such 
        amount, and at all times during a period having such duration, 
        as the Administrator considers appropriate to carry out the 
        purposes of this subsection.''.

                       TITLE V--PROGRAM INTEGRITY

SEC. 501. INDEPENDENT ACTUARIAL REVIEW.

    Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016) is amended by adding at the end the following new subsection:
    ``(e) Independent Actuarial Review.--
            ``(1) Fiduciary responsibility.--The Administrator has a 
        responsibility to ensure that the National Flood Insurance 
        Program remains financially sound. Pursuant to this 
        responsibility, the Administrator shall from time to time 
        review and eliminate nonessential costs and positions within 
        the Program, unless otherwise authorized or required by law, as 
        the Administrator determines to be necessary.
            ``(2) Annual independent actuarial study.--The 
        Administrator shall provide for an independent actuarial study 
        of the National Flood Insurance Program to be conducted 
        annually, which shall analyze the financial position of the 
        program based on the long-term estimated losses of the program. 
        The Administrator shall submit a report (together with the 
        independent actuarial study) annually to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        describing the results of such study, including a determination 
        of whether the Program has collected revenue sufficient to 
        cover the administrative expenses of carrying out the flood 
        insurance program, which are reflected in the risk premium 
        rates, cost of capital, all other costs associated with the 
        transfer of risks, and expected claims payments during the 
        reporting period, and an overall assessment of the financial 
        status of the Program.
            ``(3) Determination of actuarial budget deficit.--
                    ``(A) Requirement.--Within the report submitted 
                under paragraph (2), the Administrator shall issue a 
                determination of whether there exists an actuarial 
                budget deficit for the Program for the year covered in 
                the report. The report shall recommend any changes to 
                the Program, if necessary, to ensure that the program 
                remains financially sound.
                    ``(B) Basis of determination.--The determination 
                required by subparagraph (A) shall be based solely upon 
                whether the portion of premiums estimated and collected 
                by the Program during the reporting period is 
                sufficient to cover the administrative expenses of 
                carrying out the flood insurance program, which are 
                reflected in the risk premium rates, cost of capital, 
                all other costs associated with the transfer of risk, 
                and expected claims payments for the reporting period.
            ``(4) Quarterly reports.--During each fiscal year, on a 
        calendar quarterly basis, the Secretary shall cause to be 
        published in the Federal Register or comparable method, with 
        notice to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate, information which shall specify--
                    ``(A) the cumulative volume of policies that have 
                been underwritten under the National Flood Insurance 
                Program during such fiscal year through the end of the 
                quarter for which the report is submitted;
                    ``(B) the types of policies insured, categorized by 
                risk;
                    ``(C) any significant changes between actual and 
                projected claim activity;
                    ``(D) projected versus actual loss rates;
                    ``(E) the cumulative number of currently insured 
                repetitive-loss properties, severe repetitive-loss 
                properties, and extreme repetitive-loss properties that 
                have been identified during such fiscal year through 
                the end of the quarter for which the report is 
                submitted;
                    ``(F) the cumulative number of properties that have 
                undergone mitigation assistance, through the National 
                Flood Insurance Program, during such fiscal year 
                through the end of the quarter for which the report is 
                submitted; and
                    ``(G) the number and location, by State or 
                territory, of each policyholder that has been 
                identified for such fiscal year as an eligible 
                household for purposes of the flood insurance 
                affordability program under section 1326.
        The first quarterly report under this paragraph shall be 
        submitted on the last day of the first quarter of fiscal year 
        2018, or on the last day of the first full calendar quarter 
        following the enactment of the 21st Century Flood Reform Act, 
        whichever occurs later.''.

SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE AFFORDABILITY 
              SURCHARGE.

    (a) In General.--Section 1308A of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015a) is amended--
            (1) in subsection (a), by striking the first sentence and 
        inserting the following: ``The Administrator shall impose and 
        collect a non-refundable annual surcharge, in the amount 
        provided in subsection (b), on all policies for flood insurance 
        coverage under the National Flood Insurance Program that are 
        newly issued or renewed after the date of the enactment of this 
        section.''; and
            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Amount.--The amount of the surcharge under subsection (a) 
shall be $40, except as follows:
            ``(1) Non-primary residences eligible for prp.--The amount 
        of the surcharge under subsection (a) shall be $125 in the case 
        of in the case of a policy for any property that is--
                    ``(A) a residential property that is not the 
                primary residence of an individual, and
                    ``(B) eligible for preferred risk rate method 
                premiums.
            ``(2) Non-residential properties and non-primary residences 
        not eligible for prp.--The amount of the surcharge under 
        subsection (a) shall be $275 in case of in the case of a policy 
        for any property that is--
                    ``(A) a non-residential property; or
                    ``(B) a residential property that is--
                            ``(i) not the primary residence of an 
                        individual; and
                            ``(ii) not eligible for preferred risk rate 
                        method premiums.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to policies for flood insurance coverage under the 
National Flood Insurance Act of 1968 that are newly issued or renewed 
after the expiration of the 12-month period beginning on the date of 
the enactment of this Act.

SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.

    Section 1310A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017A) is amended--
            (1) in subsection (c)(2)(D), by inserting before the period 
        at the end the following: ``, including any provisions relating 
        to chargeable premium rates or annual increases of such 
        rates'';
            (2) in subsection (c)(3), by striking subparagraph (A) and 
        inserting the following new subparagraph:
                    ``(A) Parity.--In exercising the authority granted 
                under paragraph (1) to increase premiums, the 
                Administrator shall institute a single annual, uniform 
                rate of assessment for all individual policyholders.''; 
                and
            (3) in subsection (d)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) In general.--Beginning in fiscal year 2018 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved--
                    ``(A) in each 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); and
                    ``(B) if in any given fiscal year the Administrator 
                fails to comply with subparagraph (A), for the 
                following fiscal year the Administrator shall increase 
                the rate of the annual assessment pursuant to 
                subsection (c)(3)(A) by at least one percentage point 
                over the rate of the annual assessment pursuant to 
                subsection (c)(3)(A) in effect on the first day of such 
                given fiscal year.'';
                    (B) in paragraph (2), by inserting before the 
                period at the end the following: ``nor to increase 
                assessments pursuant to paragraph (1)(B)''; and
                    (C) in paragraph (3), by inserting before the 
                period at the end the following: ``and paragraph (1)(B) 
                shall apply until the fiscal year in which the ratio 
                required under subsection (b) is achieved''.

SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS PROPERTIES.

    (a) Definition.--Section 1370 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4121), as amended by the preceding provisions of 
this Act, is further amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) through (18) as 
                paragraphs (7) through (17), respectively; and
            (2) by adding at the end the following new subsection:
    ``(d) Multiple-Loss Properties.--
            ``(1) Definitions.--As used in this title:
                    ``(A) Multiple-loss property.--The term `multiple-
                loss property' means any property that is a repetitive-
                loss property, a severe repetitive-loss property, or an 
                extreme repetitive-loss property.
                    ``(B) Qualified claims payment.--The term 
                `qualified claims payment' means a claims payment of 
                any amount made under flood insurance coverage under 
                this title in connection with loss resulting from a 
                flood event that occurred after the date of the 
                enactment of the 21st Century Flood Reform Act, but not 
                including any claim that occurred before a structure 
                was made compliant with State and local floodplain 
                management requirements.
                    ``(C) Repetitive-loss property.--The term 
                `repetitive-loss property' means a structure that has 
                incurred flood damage for which two or more separate 
                claims payments of any amount have been made under 
                flood insurance coverage under this title.
                    ``(D) Severe repetitive-loss property.--The term 
                `severe repetitive-loss property' means a structure 
                that has incurred flood damage for which--
                            ``(i) 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) at least 2 separate claims payments 
                        have been made under flood insurance coverage 
                        under this title, with the cumulative amount of 
                        such claims payments exceeding the value of the 
                        structure.
                    ``(E) Extreme repetitive-loss property.--The term 
                `extreme repetitive-loss property' means a structure 
                that has incurred flood damage for which at least 2 
                separate claims have been made under flood insurance 
                coverage under this title, with the cumulative amount 
                of such claims payments exceeding 150 percent of the 
                maximum coverage amount available for the structure.
            ``(2) Treatment of claims before compliance with state and 
        local requirements.--The Administrator shall not consider 
        claims that occurred before a structure was made compliant with 
        State and local floodplain management requirements for purposes 
        of determining a structure's status as a multiple-loss 
        property.''.
    (b) Premium Adjustment to Reflect Current Flood Risk.--
            (1) In general.--Section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015), as amended by the 
        preceding provisions of this Act, is further amended by adding 
        at the end the following new subsection:
    ``(p) Premium Adjustment to Reflect Current Flood Risk.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Administrator shall rate a property for which two or more 
        qualified claims payments have been made and that is charged a 
        risk premium rate estimated under section 1307(a)(1) (42 U.S.C. 
        4014(a)(1)) based on the current risk of flood reflected in the 
        flood insurance rate map in effect at the time of rating.
            ``(2) Adjustment for existing policies.--Notwithstanding 
        subsection (e) of this section, for policies for flood 
        insurance under this title in force on the date of the 
        enactment of this Act for properties described in paragraph 
        (1)--
                    ``(A) for any property for which two qualified 
                claims payments have been made, the Administrator shall 
                increase risk premium rates by 10 percent each year 
                until such rates comply with paragraph (1) of this 
                subsection; and
                    ``(B) for any property for which three or more 
                qualified claims payments have been made, the 
                Administrator shall increase risk premium rates by 15 
                percent each year until such rates comply with 
                paragraph (1) of this subsection.''.
            (2) Conforming amendment.--Section 1307(g)(2) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)(2)) is 
        amended by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) in connection with a multiple-loss 
                property.''.
    (c) Pre-FIRM Multiple-loss Property.--
            (1) Termination of subsidy.--Section 1307 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (a)(2)--
                            (i) by striking subparagraph (C) and 
                        inserting the following new subparagraph:
                    ``(C) any extreme repetitive-loss property;'';
                            (ii) in subparagraph (D), by striking 
                        ``or'';
                            (iii) in subparagraph (E)--
                                    (I) in clause (i), by striking 
                                ``fair''; and
                                    (II) in clause (ii)--
                                            (aa) by striking ``fair''; 
                                        and
                                            (bb) by striking ``and'' 
                                        and inserting ``or''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(F) any property for which two or more qualified 
                claims payments have been made; and''; and
                    (B) by striking subsection (h).
            (2) Annual limitation on premium increases.--Subsection (e) 
        of section 1308 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4015(e)) is amended--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4)--
                            (i) by striking ``the chargeable risk'' and 
                        inserting ``notwithstanding paragraph (5), the 
                        chargeable risk''; and
                            (ii) by striking ``described under 
                        paragraph (3).'' and inserting ``estimated 
                        under section 1307(a)(1); and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) the chargeable risk premium rates for flood insurance 
        under this title for any properties described in subparagraph 
        (F) of section 1307(a)(2) shall be increased--
                    ``(A) for any property for which two qualified 
                claims payments have been made, by 10 percent each 
                year, until the average risk premium rate for such 
                property is equal to the average of the risk premium 
                rates for properties estimated under section 
                1307(a)(1); and
                    ``(B) for any property for which three or more 
                qualified claims payments have been made, by 15 percent 
                each year, until the average risk premium rate for such 
                property is equal to the average of the risk premium 
                rates for properties estimated under section 
                1307(a)(1).''.
    (d) Minimum Deductibles for Certain Multiple-loss Properties.--
            (1) Clerical amendment.--The National Flood Insurance Act 
        of 1968, as amended by the preceding provisions of this Act, is 
        further amended--
                    (A) by transferring subsection (b) of section 1312 
                (42 U.S.C. 4019(b)) to section 1306 (42 U.S.C. 4013), 
                inserting such subsection at the end of such section, 
                and redesignating such subsection as subsection (f); 
                and
                    (B) in section 1312 (42 U.S.C. 4019), by 
                redesignating subsection (c) as subsection (b).
            (2) Certain multiple-loss properties.--Subsection (f) of 
        section 1306 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4013(e)), as so transferred and redesignated by 
        paragraph (1) of this subsection, is amended adding at the end 
        the following new paragraph:
            ``(3) Certain multiple-loss properties.--Notwithstanding 
        paragraph (1) or (2), the minimum annual deductible for damage 
        to any severe repetitive-loss property or extreme repetitive-
        loss property shall be not less than $5,000.''.
    (e) Claim History Validation.--Beginning not later than the 
expiration of the 180-day period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency Management 
Agency shall undertake efforts to validate the reasonable accuracy of 
claim history data maintained pursuant to the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.).
    (f) Increased Cost of Compliance Coverage.--Subparagraph (A) of 
section 1304(b)(1) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011(b)(1)(A)), as amended by the preceding provisions of this 
Act, is further amended by striking ``repetitive loss structures'' and 
inserting ``multiple-loss properties''.
    (g) Availability of Insurance for Multiple-Loss Properties.--
            (1) In general.--The National Flood Insurance Act of 1968 
        is amended by inserting after section 1304 (42 U.S.C. 4011) the 
        following new section:

``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS PROPERTIES.

    ``(a) Date and Information Identifying Current Flood Risk.--The 
Administrator may provide flood insurance coverage under this title for 
a multiple-loss property only if the owner of the property submits to 
the Administrator such data and information necessary to determine such 
property's current risk of flood, as determined by the Administrator, 
at the time of application for or renewal of such coverage.
    ``(b) Refusal To Mitigate.--
            ``(1) In general.--Except as provided pursuant to paragraph 
        (2), the Administrator may not make flood insurance coverage 
        available under this title for any extreme repetitive-loss 
        property for which a claim payment for flood loss was made 
        under coverage made available under this title that occurred 
        after the date of enactment of the 21st Century Flood Reform 
        Act if the property owner refuses an offer of mitigation for 
        the property under section 1366(a)(2) (42 U.S.C. 4104c(a)(2)).
            ``(2) Exceptions; appeals.--The Director shall develop 
        guidance to provide appropriate exceptions to the prohibition 
        under paragraph (1) and to allow for appeals to such 
        prohibition.''.
            (2) Effective date.--Section 1304A of the National Flood 
        Insurance Act of 1968, as added by paragraph (1) of this 
        subsection, shall apply beginning upon the expiration of the 
        12-month period beginning on the date of the enactment of this 
        Act.
    (h) Rates for Properties Newly Mapped Into Areas With Special Flood 
Hazards.--Subsection (i) of section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(i)) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``Notwithstanding'' and inserting the 
        following:
    ``(i) Rates for Properties Newly Mapped Into Areas With Special 
Flood Hazards.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and moving the left 
        margins of such subparagraphs, as so redesignated, and the 
        matter following subparagraph (B), 2 ems to the right; and
            (3) by adding at the end the following new paragraph:
            ``(2) Inapplicability to multiple-loss properties.--
        Paragraph (1) shall not apply to multiple-loss properties.''.
    (i) Clear Communication of Multiple-loss Property Status.--
            (1) In general.--Subsection (l) of section 1308 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), as 
        amended by the preceding provisions of this Act, is further 
        amended by adding at the end the following new paragraph:
            ``(2) Multiple-loss properties.--Pursuant to paragraph (1), 
        the Administrator shall clearly communicate to all 
        policyholders for multiple-loss properties before the 
        effectiveness of any such new or renewed coverage and after 
        each qualified claims payment for the property--
                    ``(A) the availability of flood mitigation 
                assistance under section 1366; and
                    ``(B) the effect on the premium rates charged for 
                such a property of filing any further claims under a 
                flood insurance policy with respect to that 
                property.''.
    (j) Mitigation Assistance Program.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after the period at the end of the first 
                sentence the following: ``Priority under the program 
                shall be given to providing assistance with respect to 
                multiple-loss properties.'';
                    (B) in paragraph (1), by inserting ``and'' after 
                the semicolon at the end; and
                    (C) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) to property owners, in coordination with the State 
        and community, in the form of direct grants under this section 
        for carrying out mitigation activities that reduce flood damage 
        to extreme repetitive-loss properties.
The Administrator shall take such actions as may be necessary to ensure 
that grants under this subsection are provided in a manner that is 
consistent with the delivery of coverage for increased cost of 
compliance provided under section 1304(b).'';
            (2) in subsection (c)(2)(A)(ii), by striking ``severe 
        repetitive loss structures'' and inserting ``multiple-loss 
        properties'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``Severe repetitive loss 
                        structures'' and inserting ``Extreme 
                        repetitive-loss properties''; and
                            (ii) by striking ``severe repetitive loss 
                        structures'' and inserting ``extreme 
                        repetitive-loss properties'';
                    (B) in paragraph (2)--
                            (i) by striking ``Repetitive loss 
                        structures'' and inserting ``Severe repetitive-
                        loss properties'';
                            (ii) by striking ``repetitive loss 
                        structures'' and inserting ``severe repetitive-
                        loss properties''; and
                            (iii) by striking ``90 percent'' and 
                        inserting ``100 percent'';
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Repetitive-loss property.--In the case of mitigation 
        activities to repetitive-loss properties, in an amount up to 
        100 percent of all eligible costs.'';
            (4) in subsection (h)--
                    (A) by striking paragraphs (2) and (3);
                    (B) by striking the subsection designation and all 
                that follows through ``shall apply:''; and
                    (C) in paragraph (1)--
                            (i) by striking ``Community'' and inserting 
                        ``Definition of Community'';
                            (ii) by striking ``The'' and inserting 
                        ``For purposes of this section, the'';
                            (iii) by redesignating such paragraph as 
                        subsection (j);
                            (iv) in subparagraph (B), by striking 
                        ``subparagraph (A)'' and inserting ``paragraph 
                        (1)'';
                            (v) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively;
                            (vi) in paragraph (1), as so redesignated 
                        by clause (v) of this subparagraph, by 
                        redesignating clauses (i) and (ii) as 
                        subparagraphs (A) and (B), respectively (and 
                        moving the margins two ems to the left); and
                            (vii) by moving the left margins of 
                        subsection (j) (as so redesignated) and 
                        paragraphs (1) and (2), all as so redesignated, 
                        two ems to the left; and
            (5) by inserting after subsection (g) the following new 
        subsections:
    ``(h) Alignment With Increased Cost of Compliance.--Notwithstanding 
any provision of law, any funds appropriated for assistance under this 
title may be transferred to the National Flood Insurance Fund 
established under section 1310 (42 U.S.C. 4017) for the payment of 
claims to enable the Administrator to deliver grants under subsection 
(a)(2) of this section to align with the delivery of coverage for 
increased cost of compliance for extreme repetitive-loss properties.
    ``(i) Funding.--
            ``(1) Authorization of appropriations.--Notwithstanding any 
        other provision of law, assistance provided under this section 
        shall be funded by--
                    ``(A) $225,000,000 in each fiscal year, subject to 
                offsetting collections, through risk premium rates for 
                flood insurance coverage under this title, and shall be 
                available subject to section 1310(f);
                    ``(B) any penalties collected under section 102(f) 
                the Flood Disaster Protect Act of 1973 (42 U.S.C. 
                4012a(f); and
                    ``(C) any amounts recaptured under subsection (e) 
                of this section.
        The Administrator may not use more than 5 percent of amounts 
        made available under this subsection to cover salaries, 
        expenses, and other administrative costs incurred by the 
        Administrator to make grants and provide assistance under this 
        section.
            ``(2) Availability.--Amounts appropriated pursuant to this 
        subsection for any fiscal year may remain available for 
        obligation until expended.''.
    (k) Repeal.--Section 1367 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104d) is repealed.

SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH EXCESSIVE 
              LIFETIME CLAIMS.

    Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended by adding at the end the following new subsection:
    ``(e) Prohibition of Coverage for Properties With Excessive 
Lifetime Claims.--The Administrator may not make available any new or 
renewed coverage for flood insurance under this title for any multiple-
loss property for which the aggregate amount in claims payments that 
have been made after the expiration of the 18-month period beginning on 
the date of the enactment of this subsection under flood insurance 
coverage under this title exceeds three times the amount of the 
replacement value of the structure.''.

SEC. 506. PAY FOR PERFORMANCE AND STREAMLINING COSTS AND REIMBURSEMENT.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following subsection:
    ``(g) Write Your Own Allowance and Program Savings.--
            ``(1) Allowance rate.--
                    ``(A) Limitation.--The allowance paid to companies 
                participating in the Write Your Own Program (as such 
                term is defined in section 1370 (42 U.S.C. 4004)) with 
                respect to a policy for flood insurance coverage made 
                available under this title shall not be greater than 
                27.9 percent of the chargeable premium for such 
                coverage.
                    ``(B) Inapplicability.--Subparagraph (A) shall not 
                apply to actual and necessary costs related to section 
                1312(a) (42 U.S.C. 4019(a)), or to payments deemed 
                necessary by the Administrator.
                    ``(C) Implementation.--The limitation in 
                subparagraph (A) shall be imposed by equal reductions 
                over the 3-year period beginning on the date of the 
                enactment of this subsection.
            ``(2) Program savings.--
                    ``(A) Implementation.--The Administrator, within 
                three years of the date of the enactment of this Act, 
                shall reduce the costs and unnecessary burdens for the 
                companies participating in the Write Your Own program 
                by at least half of the amount by which the limitation 
                under paragraph (1)(A) reduced costs compared to the 
                costs as of the date of the enactment of this 
                subsection.
                    ``(B) Consideration of savings.--In meeting the 
                requirement of subparagraph (A), the Administrator 
                shall consider savings including--
                            ``(i) indirect payments by the 
                        Administrator of premium;
                            ``(ii) eliminating unnecessary 
                        communications requirements;
                            ``(iii) reducing the frequency of National 
                        Flood Insurance Program changes;
                            ``(iv) simplifying the flood rating system; 
                        and
                            ``(v) other ways of streamlining the 
                        Program to reduce costs while maintaining 
                        customer service and distribution.''.

SEC. 507. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

    (a) Penalties.--Paragraph (5) of section 102(f) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is amended by 
striking ``$2,000'' and inserting ``$5,000''.
    (b) Insured Depository Institutions.--Subparagraph (A) of section 
10(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1820(i)(2)(A)) 
is amended by striking ``date of enactment of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and biennially 
thereafter for the next 4 years'' and inserting ``date of enactment of 
the 21st Century Flood Reform Act and biennially thereafter''.
    (c) Credit Unions.--Subparagraph (A) of section 204(e)(2) of the 
Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is amended by 
striking ``date of enactment of the Riegle Community Development and 
Regulatory Improvement Act of 1994 and biennially thereafter for the 
next 4 years'' and inserting ``date of enactment of the 21st Century 
Flood Reform Act and annually thereafter''.
    (d) Government-Sponsored Enterprises.--Paragraph (4) of section 
1319B(a) of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is amended, in the matter 
after and below subparagraph (B), by striking ``first, third, and fifth 
annual reports under this subsection required to be submitted after the 
expiration of the 1-year period beginning on the date of enactment of 
the Riegle Community Development and Regulatory Improvement Act of 
1994'' and inserting ``first annual report under this subsection 
required to be submitted after the expiration of the 1-year period 
beginning on the date of enactment of the 21st Century Flood Reform Act 
and every such second annual report thereafter''.
    (e) Guidelines.--The Federal entities for lending regulation (as 
such term is defined in section 3(a) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4003(a))), in consultation with the 
Administrator of the Federal Emergency Management Agency, shall jointly 
update and reissue the rescinded document of the Administrator entitled 
``Mandatory Purchase of Flood Insurance Guidelines'' (lasted updated on 
October 29, 2014). The updated document shall incorporate 
recommendations made by the Comptroller General pursuant to the study 
conducted under section 514 of this Act.

SEC. 508. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN STATES 
              ALLOWING ALL-PERILS POLICIES.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by the preceding provisions of this Act, is further 
amended--
            (1) in subsection (a), by striking ``After'' and inserting 
        ``Subject to subsection (i) of this section, after'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``Each'' and 
                inserting ``Subject to subsection (i) of this section, 
                each'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``A'' 
                        the first place such term appears and inserting 
                        ``Subject to subsection (i) of this section, 
                        a'';
                            (ii) in subparagraph (B), by striking 
                        ``Each'' and inserting ``Subject to subsection 
                        (i) of this section, each''; and
                    (C) in paragraph (3), by striking ``The'' the first 
                place such term appears and inserting ``Subject to 
                subsection (i) of this section, the'';
            (3) in subsection (e)(1), by striking ``If'' and inserting 
        ``Subject to subsection (i) of this section, if''; and
            (4) by adding at the end the following new subsection:
    ``(i) Satisfaction of Mandatory Purchase Requirement in States 
Allowing All-perils Policies.--
            ``(1) Waivers.--Subsections (a) and (b) of this section 
        shall not apply with respect to residential properties in any 
        State that allows any property insurance coverage that covers 
        `all-perils' except specifically excluded perils and that 
        includes coverage for flood perils in an amount at least equal 
        to the outstanding principal balance of the loan or the maximum 
        limit of flood insurance coverage made available under this 
        title with respect to such type of residential property, 
        whichever is less.
            ``(2) Definitions, procedures, standards.--The 
        Administrator may establish such definitions, procedures, and 
        standards as the Administrator considers necessary for making 
        determinations under paragraph (1).''.

SEC. 509. FLOOD INSURANCE PURCHASE REQUIREMENTS.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by the preceding provisions of this Act, is further 
amended--
            (1) in subsection (c)(2)(A), by striking ``$5,000 or less'' 
        and inserting the following: ``$25,000 or less, except that 
        such amount (as it may have been previously adjusted) shall be 
        adjusted for inflation by the Administrator upon the expiration 
        of the 5-year period beginning upon the enactment of the 21st 
        Century Flood Reform Act and upon the expiration of each 
        successive 5-year period thereafter, in accordance with an 
        inflationary index selected by the Administrator''; and
            (2) by adding at the end the following new subsection:
    ``(j) Flood Insurance Purchase Requirements.--Notwithstanding any 
other provision of law, a State or local government or private lender 
may require the purchase of flood insurance coverage for a structure 
that is located outside of an area having special flood hazards.''.

SEC. 510. CLARIFICATIONS; DEADLINE FOR APPROVAL OF CLAIMS.

    (a) Rule of Construction.--Part C of chapter II of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new section:

``SEC. 1350. RULE OF CONSTRUCTION.

    ``A policyholder of a policy for flood insurance coverage made 
available under this title must exhaust all administrative remedies, 
including submission of disputed claims to appeal under any appeal 
process made available by the Administrator, prior to commencing legal 
action on any disputed claim under such a policy.''.
    (b) Deadline for Approval of Claims.--
            (1) In general.--Section 1312 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4019), as amended by the 
        preceding provisions of this Act, is further amended--
                    (A) in subsection (a), by striking ``The 
                Administrator'' and inserting ``Subject to the other 
                provisions of this section, the Administrator''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of any claim for damage to or loss of property under 
        flood insurance coverage made available under this title, an 
        initial determination regarding approval of a claim for payment 
        or disapproval of the claim be made, and notification of such 
        determination be provided to the insured making such claim, not 
        later than the expiration of the 120-day period (as such period 
        may be extended pursuant to paragraph (2)) beginning upon the 
        day on which the policyholder submits a signed proof of loss 
        detailing the damage and amount of the loss. Payment of 
        approved claims shall be made as soon as possible after such 
        approval.
            ``(2) Extension of deadline.--The Administrator shall 
        provide that the period referred to in paragraph (1) may be 
        extended by a single additional period of 15 days in cases 
        where extraordinary circumstances are demonstrated. The 
        Administrator shall, by regulation, establish criteria for 
        demonstrating such extraordinary circumstances and for 
        determining to which claims such extraordinary circumstances 
        apply.''.
            (2) Applicability.--The amendments made by paragraph (1) 
        shall apply to any claim under flood insurance coverage made 
        available under the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.) pending on the date of the enactment of 
        this Act and any claims made after such date of enactment.

SEC. 511. RISK TRANSFER REQUIREMENT.

    Subsection (e) of section 1345 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4081(e)) is amended--
            (1) by striking ``(e) Risk Transfer.--The Administrator'' 
        and inserting the following:
    ``(e) Risk Transfer.--
            ``(1) Authority.--The Administrator''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Required risk transfer coverage.--
                    ``(A) Requirement.--Not later than the expiration 
                of the 18-month period beginning upon the date of the 
                enactment of this paragraph and at all times 
                thereafter, the Administrator shall annually cede a 
                portion of the risk of the flood insurance program 
                under this title to the private reinsurance or capital 
                markets, or any combination thereof, and at rates and 
                terms that the Administrator determines to be 
                reasonable and appropriate, in an amount that--
                            ``(i) is sufficient to maintain the ability 
                        of the program to pay claims; and
                            ``(ii) manages and limits the annual 
                        exposure of the flood insurance program to 
                        flood losses in accordance with the probable 
                        maximum loss target established for such year 
                        under subparagraph (B).
                    ``(B) Probable maximum loss target.--The 
                Administrator shall for each fiscal year, establish a 
                probable maximum loss target for the national flood 
                insurance program that shall be the maximum probable 
                loss under the national flood insurance program that is 
                expected to occur in such fiscal year.
                    ``(C) Considerations.--In establishing the probable 
                maximum loss target under subparagraph (B) for each 
                fiscal year and carrying out subparagraph (A), the 
                Administrator shall consider--
                            ``(i) the probable maximum loss targets for 
                        other United States public natural catastrophe 
                        insurance programs, including as State wind 
                        pools and earthquake programs;
                            ``(ii) the probable maximum loss targets of 
                        other risk management organizations, including 
                        the Federal National Mortgage Association and 
                        the Federal Home Loan Mortgage Corporation;
                            ``(iii) catastrophic, actuarial, and other 
                        appropriate data modeling results of the 
                        national flood insurance program portfolio;
                            ``(iv) the availability of funds in the 
                        National Flood Insurance Fund established under 
                        section 1310 (42 U.S.C. 4017);
                            ``(v) the availability of funds in the 
                        National Flood Insurance Reserve Fund 
                        established under section 1310A (42 U.S.C. 
                        4017a);
                            ``(vi) the availability of borrowing 
                        authority under section 1309 (42 U.S.C. 4016);
                            ``(vii) the ability of the Administrator to 
                        repay outstanding debt;
                            ``(viii) amounts appropriated to the 
                        Administrator to carry out the national flood 
                        insurance program;
                            ``(ix) reinsurance, capital markets, 
                        catastrophe bonds, collateralized reinsurance, 
                        resilience bonds, and other insurance-linked 
                        securities, and other risk transfer 
                        opportunities; and
                            ``(x) any other factor the Administrator 
                        determines appropriate.
                    ``(D) Multi-year contracts.--Nothing in this 
                paragraph may be construed to prevent or prohibit the 
                Administrator from complying with the requirement under 
                subparagraph (A) regarding ceding risk through 
                contracts having a duration longer than one year.''.

SEC. 512. GAO STUDY OF SIMPLIFICATION OF NATIONAL FLOOD INSURANCE 
              PROGRAM.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of options for simplifying flood insurance coverage 
made available under the National Flood Insurance Act, which shall 
include the following:
            (1) An analysis of how the administration of the National 
        Flood Insurance Program can be simplified--statutorily, 
        regulatorily, and administratively--for private flood insurance 
        policyholders, companies, agents, mortgage lenders, and flood 
        insurance vendors.
            (2) An assessment of ways in which flood insurance coverage 
        made available under the National Flood Insurance Act and the 
        program for providing and administrating such coverage may be 
        harmonized with private insurance industry standards.
            (3) Identification and analysis of ways in which the 
        structure of the National Flood Insurance Program may be 
        simplified, including analysis of the efficacy and effects each 
        of the following actions:
                    (A) Eliminating the use of two deductibles under 
                the Program.
                    (B) Including in claims for flood-damages full 
                replacement cost for property not damaged, but rendered 
                unusable, by the flooding.
                    (C) Using umbrella policies that allow multiple 
                structures on a property to be insured under the same 
                policy.
    (b) Report.--Not later than the expiration of the 18-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the findings and conclusions of 
the study conducted pursuant to this section.

SEC. 513. GAO STUDY ON ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the implementation and efficacy of the requirements 
of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a). Such study shall at minimum consider the following questions:
            (1) How effectively do Federal agencies, regulated lending 
        institutions, and Federal entities for lending regulation 
        implement the requirements of section 102 of the Flood Disaster 
        Protection Act of 1973?
            (2) Does the current implementation of Flood Disaster 
        Protection Act of 1973 align with the congressional findings 
        and purposes described in section 2(b) of such Act (42 U.S.C. 
        4002)?
            (3) What is the current level of compliance with section 
        102?
            (4) What are the estimated historical impacts on revenue to 
        the National Flood Insurance Program based on the current level 
        of compliance of section 102?
            (5) Is the current monitoring and tracking framework in 
        place sufficient to ensure compliance with section 102?
            (6) What is the best way to establish a consolidated, 
        comprehensive, and accurate repository of data on compliance 
        with section 102?
            (7) What, if any, unintended consequences have resulted 
        from the requirements and implementation of section 102?
            (8) How can Federal agencies and regulated lending 
        institutions improve compliance with section 102?
    (b) Report.--Not later than the expiration of the 18-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the findings and conclusions of 
the study conducted pursuant to this section.

                    TITLE VI--ADMINISTRATIVE REFORMS

SEC. 601. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL 
              FLOOD INSURANCE PROGRAM.

    Part C of chapter 2 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081 et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following new section:

``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL 
              FLOOD INSURANCE PROGRAM.

    ``(a) Prohibited Acts.--A person shall not knowingly make a false 
or misleading statement, production, or submission in connection with 
the proving or adjusting of a claim for flood insurance coverage made 
available under this Act. Such prohibited acts include--
            ``(1) knowingly forging an engineering report, claims 
        adjustment report or technical assistance report used to 
        support a claim determination;
            ``(2) knowingly making any materially false, fictitious, or 
        fraudulent statement or representation in an engineering 
        report, claims adjustment report, or technical assistance 
        report to support a claim determination;
            ``(3) knowingly submitting a materially false, fictitious, 
        or fraudulent claim.
    ``(b) Civil Enforcement.--The Attorney General may bring a civil 
action for such relief as may be appropriate whenever it appears that 
any person has violated or is about to violate any provision of this 
section. Such action may be brought in an appropriate United States 
district court.
    ``(c) Referral to Attorney General.--The Administrator shall 
expeditiously refer to the Attorney General for appropriate action any 
evidence developed in the performance of functions under this Act that 
may warrant consideration for criminal or civil prosecution.
    ``(d) Penalties.--
            ``(1) Civil monetary penalty.--Any person who violates 
        subsection (a) shall be subject to a civil penalty of not more 
        than $10,000 for each violation, which shall be deposited into 
        the National Flood Insurance Fund established under section 
        1310 (42 U.S.C. 4017).
            ``(2) Suspension and debarment.--Any person who violates 
        subsection (a) shall not be eligible, for a period of not less 
        than 2 years and not to exceed 5 years, to--
                    ``(A) receive flood insurance coverage pursuant to 
                this title; or
                    ``(B) provide services in connection with the 
                selling, servicing, or handling of claims for flood 
                insurance policies provided pursuant to this title.
            ``(3) Other penalties.--The penalties provided for in this 
        subsection shall be in addition to any other civil or criminal 
        penalty available under law.''.

SEC. 602. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.

    (a) Establishment.--Part C of chapter II of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new section:

``SEC. 1352. APPROVAL OF DECISIONS RELATING TO FLOOD INSURANCE 
              COVERAGE.

    ``(a) In General.--The Administrator shall establish an appeals 
process to enable holders of a flood insurance policy provided under 
this title to appeal the decisions of their insurer, with respect to 
the disallowance, in whole or in part, of any claims for proved and 
approved losses covered by flood insurance. Such appeals shall be 
limited to the claim or portion of the claim disallowed by the insurer.
    ``(b) Appeal Decision.--Upon a decision in an appeal under 
subsection (a), the Administrator shall provide the policyholder with a 
written appeal decision. The appeal decision shall explain the 
Administrator's determination to uphold or overturn the decision of the 
flood insurer. The Administrator may direct the flood insurer to take 
action necessary to resolve the appeal, to include re-inspection, re-
adjustment, or payment, as appropriate.
    ``(c) Rules of Construction.--This section shall not be construed 
as--
            ``(1) making the Federal Emergency Management Agency or the 
        Administrator a party to the flood insurance contract; or
            ``(2) creating any action or remedy not otherwise provided 
        by this title.''.
    (b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter Flood 
Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is hereby repealed.

SEC. 603. DEADLINE FOR APPROVAL OF CLAIMS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
subsection:
    ``(d) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of any claim for damage to or loss of property under 
        flood insurance coverage made available under this title, a 
        final determination regarding approval of a claim for payment 
        or disapproval of the claim be made, and notification of such 
        determination be provided to the insured making such claim, not 
        later than the expiration of the 90-day period (as such period 
        may be extended pursuant to paragraph (2)) beginning upon the 
        day on which such claim was made. Payment of approved claims 
        shall be made as soon as possible after such approval.
            ``(2) Extension of deadline.--The Administrator shall 
        provide that the period referred to in paragraph (1) may be 
        extended by a single additional period of 15 days in cases 
        where extraordinary circumstances are demonstrated. The 
        Administrator shall, by regulation, establish criteria for 
        demonstrating such extraordinary circumstances and for 
        determining to which claims such extraordinary circumstances 
        apply.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to any claim under flood insurance coverage made available under 
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
pending on the date of the enactment of this Act and any claims made 
after such date of enactment.

SEC. 604. LITIGATION PROCESS OVERSIGHT AND REFORM.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 1353. OVERSIGHT OF LITIGATION.

    ``(a) Oversight.--The Administrator shall monitor and oversee 
litigation conducted by Write Your Own companies arising under 
contracts for flood insurance sold pursuant to this title, to ensure 
that--
            ``(1) litigation expenses are reasonable, appropriate, and 
        cost-effective; and
            ``(2) Write Your Own companies comply with guidance and 
        procedures established by the Administrator regarding the 
        conduct of litigation.
    ``(b) Denial of Reimbursement for Expenses.--The Administrator may 
deny reimbursement for litigation expenses that are determined to be 
unreasonable, excessive, contrary to guidance issued by the 
Administrator, or outside the scope of any arrangement entered into 
with a Write Your Own company.
    ``(c) Litigation Strategy.--The Administrator may direct litigation 
strategy for claims arising under a contract for flood insurance sold 
by a Write Your Own company.''.

SEC. 605. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 1354. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

    ``The Administrator may not at any time newly employ in connection 
with the flood insurance program under this title any attorney who has 
been suspended or disbarred by any court, bar, or Federal or State 
agency to which the individual was previously admitted to practice.''.

SEC. 606. TECHNICAL ASSISTANCE REPORTS.

    (a) Use.--Section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new subsection:
    ``(e) Use of Technical Assistance Reports.--When adjusting claims 
for any damage to or loss of property which is covered by flood 
insurance made available under this title, the Administrator may rely 
upon technical assistance reports, as such term is defined in section 
1312A, only if such reports are final and are prepared in compliance 
with applicable State and Federal laws regarding professional licensure 
and conduct.''.
    (b) Disclosure.--The National Flood Insurance Act of 1968 is 
amended by inserting after section 1312 (42 U.S.C. 4019) the following 
new section:

``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.

    ``(a) In General.--Notwithstanding section 552a of title 5, United 
States Code, upon request by a policyholder, the Administrator shall 
provide a true, complete, and unredacted copy of any technical 
assistance report that the Administrator relied upon in adjusting and 
paying for any damage to or loss of property insured by the 
policyholder and covered by flood insurance made available under this 
title. Such disclosures shall be in addition to any other right of 
disclosure otherwise made available pursuant such section 552a or any 
other provision of law.
    ``(b) Direct Disclosure by Write Your Own Companies and Direct 
Servicing Agents.--A Write Your Own company or direct servicing agent 
in possession of a technical assistance report subject to disclosure 
under subsection (a) may disclose such technical assistance report 
without further review or approval by the Administrator.
    ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Policyholder.--The term `policyholder' means a person 
        or persons shown as an insured on the declarations page of a 
        policy for flood insurance coverage sold pursuant to this 
        title.
            ``(2) Technical assistance report.--The term `technical 
        assistance report' means a report created for the purpose of 
        furnishing technical assistance to an insurance claims adjuster 
        assigned by the National Flood Insurance Program, including by 
        engineers, surveyors, salvors, architects, and certified public 
        accounts.''.

SEC. 607. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE 
              POLICIES.

    Section 100234 of the Biggert-Waters Flood Insurance Reform Act of 
2012 (42 U.S.C. 4013a) is amended by adding at the end the following 
new subsection:
    ``(c) Disclosure of Coverage.--
            ``(1) Disclosure sheet.--Each policy under the National 
        Flood Insurance Program shall include a disclosure sheet that 
        sets forth, in plain language--
                    ``(A) the definition of the term `flood' for 
                purposes of coverage under the policy;
                    ``(B) a description of what type of flood forces 
                are necessary so that losses from an event are covered 
                under the policy, including overflow of inland or tidal 
                waves, unusual and rapid accumulation or runoff of a 
                surface any source, and mudflow;
                    ``(C) a statement of the types and characteristics 
                of losses that are not covered under the policy;
                    ``(D) a summary of total cost and amount of 
                insurance coverage, and any other information relating 
                to such coverage required to be disclosed under section 
                1308(l) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4015(l));
                    ``(E) a statement that the disclosure sheet 
                provides general information about the policyholder's 
                standard flood insurance policy;
                    ``(F) a statement that the standard flood insurance 
                policy, together with the endorsements and declarations 
                page, make up the official contract and are controlling 
                in the event that there is any difference between the 
                information on the disclosure sheet and the information 
                in the policy; and
                    ``(G) a statement that if the policyholder has any 
                questions regarding information in the disclosure sheet 
                or policy he or she should contact the entity selling 
                the policy on behalf of the Program, together with 
                contact information sufficient to allow the 
                policyholder to contact such entity.
            ``(2) Acknowledgment sheet.--Each policy under the National 
        Flood Insurance Program shall include an acknowledgment sheet 
        that sets forth, in plain language--
                    ``(A) a statement of whether or not there is a 
                basement in the property to be covered by the policy;
                    ``(B) a statement of whether or not the policy 
                provides coverage for the contents of the property 
                covered by the policy;
                    ``(C) a statement that the standard flood insurance 
                policy, together with the endorsements and declarations 
                page, make up the official contract and are controlling 
                in the event that there is any difference between the 
                information on the acknowledgment sheet and the 
                information in the policy; and
                    ``(D) a statement that if the policyholder has any 
                questions regarding information in the acknowledgment 
                sheet or policy he or she should contact the entity 
                selling the policy on behalf of the Program, together 
                with contact information sufficient to allow the 
                policyholder to contact such entity.
            ``(3) Required signatures.--Notwithstanding section 1306(c) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4013(c)), a policy for flood insurance coverage under the 
        National Flood Insurance Program may not take effect unless the 
        disclosure sheet required under paragraph (1) and the 
        acknowledgment sheet required under paragraph (2), with respect 
        to the policy, are signed and dated by the policyholder and the 
        seller of the policy who is acting on behalf of the Program.''.

SEC. 608. RESERVE FUND AMOUNTS.

    Section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4017) is amended by adding at the end the following new subsection:
    ``(g) Crediting of Reserve Fund Amounts.--Funds collected pursuant 
to section 1310A may be credited to the Fund under this section to be 
available for the purpose described in subsection (d)(1).''.

SEC. 609. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE ADVOCATE.

    (a) In General.--Section 24 of the Homeowner Flood Insurance 
Affordability Act of 2014 (42 U.S.C. 4033) is amended by adding at the 
end the following new subsection:
    ``(c) Staff.--The Administrator shall ensure that the Flood 
Insurance Advocate has sufficient staff to carry out all of the duties 
and responsibilities of the Advocate under this section.''.
    (b) Timing.--The Administrator of the Federal Emergency Management 
Agency shall take such actions as may be necessary to provide for full 
compliance with section 24(c) of the Homeowner Flood Insurance 
Affordability Act of 2014, as added by the amendment made by subsection 
(a) of this section, not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act.

SEC. 610. LIMITED EXEMPTION FOR DISASTER OR CATASTROPHE CLAIMS 
              ADJUSTERS.

    Section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 207) 
is amended by adding at the end the following:
    ``(s)(1) The provisions of this section shall not apply for a 
period of 2 years after the occurrence of a major disaster to any 
employee--
            ``(A) employed to adjust or evaluate claims resulting from 
        or relating to such major disaster, by an employer not engaged, 
        directly or through an affiliate, in underwriting, selling, or 
        marketing property, casualty, or liability insurance policies 
        or contracts;
            ``(B) who receives from such employer on average weekly 
        compensation of not less than $591.00 per week or any minimum 
        weekly amount established by the Secretary, whichever is 
        greater, for the number of weeks such employee is engaged in 
        any of the activities described in subparagraph (C); and
            ``(C) whose duties include any of the following:
                    ``(i) interviewing insured individuals, individuals 
                who suffered injuries or other damages or losses 
                arising from or relating to a disaster, witnesses, or 
                physicians;
                    ``(ii) inspecting property damage or reviewing 
                factual information to prepare damage estimates;
                    ``(iii) evaluating and making recommendations 
                regarding coverage or compensability of claims or 
                determining liability or value aspects of claims;
                    ``(iv) negotiating settlements; or
                    ``(v) making recommendations regarding litigation.
    ``(2) Notwithstanding any other provision of section 18, in the 
event of a major disaster, this Act exclusively shall govern all such 
employers in lieu of any State or other Federal law or regulation or 
local law or regulation, with respect to the employees described in 
paragraph (1).
    ``(3) The exemption in this subsection shall not affect the 
exemption provided by section 13(a)(1).
    ``(4) For purposes of this subsection--
            ``(A) the term `major disaster' means any natural 
        catastrophe, including any hurricane, tornado, storm, high 
        water, wind driven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, or drought, 
        or, regardless of cause, any other catastrophe, including fire, 
        flood, explosion, land collapse, avalanche, or pollutant or 
        chemical release;
            ``(B) the term `employee employed to adjust or evaluate 
        claims resulting from or relating to such major disaster' means 
        an individual who timely secured or secures a license required 
        by applicable law to engage in and perform the activities 
        described in clauses (i) through (v) of paragraph (1)(C) 
        relating to a major disaster, and is employed by an employer 
        that maintains worker compensation insurance coverage or 
        protection for its employees, if required by applicable law, 
        and withholds applicable Federal, State, and local income and 
        payroll taxes from the wages, salaries and any benefits of such 
        employees; and
            ``(C) the term `affiliate' means a company that, by reason 
        of ownership or control of twenty-five percent (25%) or more of 
        the outstanding shares of any class of voting securities of one 
        or more companies, directly or indirectly, controls, is 
        controlled by, or is under common control with, another 
        company.''.

            Passed the House of Representatives November 14, 2017.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.