[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1309 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1309
To require the use of replacement cost value in determining the premium
rates for flood insurance coverage under the National Flood Insurance
Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 1, 2023
Mr. Luetkemeyer introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the use of replacement cost value in determining the premium
rates for flood insurance coverage under the National Flood Insurance
Act, 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. 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); and
(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 three-year period beginning upon the
expiration of the period referred to in paragraph (3)
of this subsection, 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.
<all>