[Congressional Record Volume 140, Number 30 (Thursday, March 17, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


      COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS ACT

                                 ______


                 ROTH (AND D'AMATO) AMENDMENT NO. 1533

  Mr. ROTH (for himself and Mr. D'Amato) proposed an amendment to 
amendment No. 1525 proposed by Mr. Riegle to the bill (S. 1275) to 
facilitate the establishment of community development financial 
institutions; as follows:

     SEC. 404. EFFECTUATING THE PRINCIPLE OF NATIONAL TREATMENT 
                   FOR INSURERS AND REINSURERS.

       (a) Purpose.--The purpose of this section is to encourage 
     foreign countries to accord national treatment to United 
     States insurers and reinsurers that operate or seek to 
     operate in those countries.
       (b) Identifying Countries That Deny National Treatment to 
     United States Insurers or Reinsurers.--The President or the 
     President's designee shall identify whether and to what 
     extent foreign countries deny national treatment to United 
     States insurers or reinsurers--
       (1) according to the most recent report under section 3602 
     of the Omnibus Trade and Competitiveness Act of 1988 (or 
     update thereof); or
       (2) based on more recent information that the President 
     deems appropriate.
       (c) Determining Whether Denial of National Treatment Has 
     Significant Adverse Effect.--
       (1) In general.--The President shall determine whether the 
     denial of national treatment to United States insurers or 
     reinsurers by a foreign country identified under subsection 
     (b) has a significant adverse effect on such organizations.
       (2) Factors to be considered.--In determining whether and 
     to what extent a foreign country denies national treatment to 
     United States insurers or reinsurers, and in determining the 
     effect of any such denial on such insurers or reinsurers, the 
     President shall consider appropriate factors, including--
       (A) the size of the foreign country's markets for the 
     financial services involved, and the extent to which United 
     States insurers or reinsurers operate or seek to operate in 
     those markets;
       (B) the extent to which United States insurers or 
     reinsurers may participate in developing regulations, 
     guidelines, or other policies regarding new products, 
     services, and markets in the foreign country;
       (C) the extent to which the foreign country issues written 
     regulations, guidelines, or other policies applicable to 
     United States insurers or reinsurers operating or seeking to 
     operate in the foreign country that are--
       (i) prescribed after adequate notice and opportunity for 
     comment;
       (ii) readily available to the public; and
       (iii) prescribed in accordance with objective standards 
     that effectively prevent arbitrary and capricious 
     determinations;
       (D) the effects of the regulatory policies of the foreign 
     country on--
       (i) the licensing policies of the insurance regulator of 
     that country;
       (ii) capital requirements applicable in that country;
       (iii) restrictions on acquisitions or joint ventures and 
     operations thereof by insurers or reinsurers in that country; 
     and
       (iv) restrictions on the operation and establishment of 
     branches in that country.
       (d) Publication of Determination.--
       (1) In general.--If the President determines under 
     subsection (c) that the denial of national treatment to 
     United States insurers or reinsurers by a foreign country has 
     a significant adverse effect on such organizations, the 
     President--
       (A) may, after initiating negotiations in accordance with 
     subsection (f) publish that determination in the Federal 
     Register;
       (B) shall, not less frequently than annually, in 
     consultation with any department or agency that the President 
     deems appropriate, review each such determination to 
     determine whether it should be rescinded; and
       (C) shall inform State insurance commissioners of the 
     publication of that determination.
       (2) Exception for countries that are parties to certain 
     agreements governing financial services.--Paragrah (1) shall 
     not apply to a foreign country to the extent that any 
     authority under that paragraph would permit action to be 
     taken that would be inconsistent with a bilateral or 
     multilateral agreement including any dispute resolution 
     procedures contained in such agreement that governs financial 
     services, including insurance, that--
       (A) the President entered into with that country; and
       (B) the Senate and the House of Representatives approved;

     before the date of enactment of this section.
       (e) Sanctions.--
       (1) Actions by the president.--
       (A) In general.--The President may recommend to the state 
     insurance commissioners that they deny a foreign insurer's or 
     reinsurer's request for authorization which is filed after 
     the date of publication of a determination under subsection 
     (d)(1) by a person of a foreign country listed in such 
     publication if the President determines that--
       (i) such action would assist the United States in 
     negotiations to eliminate discrimination against United 
     States insurers or reinsurers;
       (ii) negotiations undertaken pursuant to subsection (f) are 
     not likely to result in an agreement that eliminates the 
     denial of national treatment; or
       (iii) the country has not adequately adhered to an 
     agreement reached as a result of negotiations undertaken 
     pursuant to subsection (f).
       (B) Exercise of authority.--If the President delegates his 
     authority under Sec. 4(b), the designee's authority under 
     subparagraph (A) shall be exercised according to the specific 
     direction (if any) of the President.
       (C) Compliance exceptions.--If the state insurance 
     commissioners do not act within 90 days on the President's 
     recommendations in subsection (A), or if the President 
     determines that the procedure outlined in subsection (A) is 
     either inappropriate or impractical to achieve the purpose of 
     this section, the President may take such action as he or she 
     considers necessary and appropriate to encourage foreign 
     countries to accord national treatment to United States 
     insurers and reinsurers that operate or seek to operate in 
     those countries.
       (2) Standards for exercise of discretion.--In exercising 
     any discretion under subsection (e), the President shall 
     consider, with respect to an insurer or reinsurer, branch, or 
     other affiliated entity that is a person of a foreign country 
     and is operating in the United States--
       (A) the extent to which the foreign country is progressing 
     toward according national treatment to United States insurers 
     or reinsurers; and
       (B) whether the foreign country permits United States 
     insurers or reinsurers to expand their activities in that 
     country, even if that country determined that the United 
     States did not accord national treatment to the insurers or 
     reinsurers of that country.
       (f) Negotiations.--
       (1) In general.--The President--
       (A) shall initiate negotiations with any foreign country 
     with respect to which a determination made under subsection 
     (c)(1) is in effect; and
       (B) may initiate negotiations with any foreign country 
     which denies national treatment to United States insurers or 
     reinsurers to ensure that the foreign country accords 
     national treatment to such insurers or reinsurers.
       (2) Exceptions.--Paragraphs (1) does not require the 
     President to initiate negotiations with a foreign country if 
     the President--
       (A) determines that the negotiations--
       (i) would be so unlikely to result in progress toward 
     according national treatment to United States insurers and 
     reinsurers as to be a waste of effort; or
       (ii) would impair the economic interests of the United 
     States; and
       (B) gives written notice of that determination to the 
     chairperson and the ranking minority member of the 
     appropriate Senate and House committees.
       (g) Report.--
       (1) Contents of report.--Not later than December 1, 1994, 
     and biennially thereafter, the President shall submit to the 
     Congress a report that--
       (A) specifies the foreign countries identified under 
     subsection (b);
       (B) if a determination is published under subsection (d)(1) 
     with respect to the foreign country, provides the reasons 
     therefor;
       (C) if the President has not made or has rescinded such a 
     determination with respect to the foreign country, provides 
     the reasons therefor;
       (D) describes the results of any negotiations conducted 
     under subsection (g)(1) with the foreign country; and
       (E) discusses the effectiveness of this section in 
     achieving the purpose of this section.
       (2) Submission of report.--The report required by paragraph 
     (1) may be submitted as part of a report or update submitted 
     under section 3602 of the Omnibus Trade and Competitiveness 
     Act of 1988.
       (h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Insurer.--The term ``insurer'' means a party to a 
     contract of insurance who assumes the risk and undertakes to 
     indemnify the insured, or pay a certain sum on the happening 
     of a specified contingency.
       (2) National treatment.--A foreign country accords 
     ``national treatment'' to United States insurers and 
     reinsurers if it offers them the same competitive 
     opportunities (including effective market access) as are 
     available to its domestic insurers or reinsurers.
       (3) Person of a foreign country.--The term ``person of a 
     foreign country'' means--
       (A) a person organized under the laws of the foreign 
     country;
       (B) a person that has its principal place of business in 
     the foreign country;
       (C) an individual who is--
       (i) a citizen of the foreign country, or
       (ii) domiciled in the foreign country; and
       (D) a person that is directly or indirectly controlled by a 
     person or persons described in subparagraph (A) or (B), or by 
     an individual or individuals described in subparagraph (C).
       (4) President.--The term ``President'' means the President 
     of the United States or the President's designee.
       (5) Reinsurer.--The term ``reinsurer'' means an insurer 
     which contracts to indemnify a ceding insurer for all or part 
     of a risk originally undertaken by the ceding insurer.
       (6) Request for authorization.--The term ``request for 
     authorization'' means--
       (A) an application, registration, notice, or other request 
     to commence engaging in the business of insurance in a state; 
     or
       (B) an application, registration, notice, or other request 
     for renewal of authorization to engage in the business of 
     insurance in a state.

                                 ______


                        GRAMM AMENDMENT NO. 1534

  Mr. D'AMATO (for Mr. Gramm) proposed an amendment to amendment No. 
1525 proposed by Mr. Riegle to the bill S. 1275, supra; as follows:

       Beginning on page 5, line 17 of the amendment, strike all 
     after ``SERVICES.'' through page 6, line 2, and insert in 
     lieu thereof the following: ``--Paragraph (1) shall not apply 
     to a foreign country to the extent that any authority under 
     that paragraph would permit action to be taken that would be 
     inconsistent with a bilateral or multilateral agreement 
     (including any dispute resolution procedures contained in 
     such agreement) that governs financial services that--
       (A) the President entered into with that country; and
       (B) the Senate and House of Representatives approved; 
     before the date of enactment of this section.''.
       Beginning on page 16, line 23, strike all after 
     ``SERVICES.'' through page 17, line 7, and insert in lieu 
     thereof the following: ``--Paragraph (1) shall not apply to a 
     foreign country to the extent that any authority under that 
     paragraph would permit action to be taken that would be 
     inconsistent with a bilateral or multilateral agreement 
     (including any dispute resolution procedures contained in 
     such agreement) that governs financial services that--
       (A) the President entered into with that country; and
       (B) the Senate and House of Representatives approved; 
     before the date of enactment of this section.''.
                                 ______


                        MACK AMENDMENT NO. 1535

  Mr. RIEGLE (for Mr. Mack) proposed an amendment to amendment No. 1525 
proposed by Mr. Riegle to the bill S. 1275, supra; as follows:

       On page 31, line 7, of amendment No. 1525 add the following 
     as a new Section 405:

     SEC. 405. FEDERAL RESERVE REPORT ON THE FOREIGN BANK 
                   SUPERVISION ENHANCEMENT ACT OF 1991.

       The Federal Reserve shall submit to the House and Senate 
     Banking Committees within 60 days of enactment of this 
     legislation a report on the Foreign Bank Supervision 
     Enhancement Act of 1991 including:
       (a) the number of applicants received and from what 
     countries;
       (b) the number of applications approved and from what 
     countries;
       (c) the amount of time taken on each application between 
     receipt and approval or rejection of the application;
       (d) other agencies involved in the approval process, how 
     much time is taken by those agencies, and any problems 
     encountered with these agencies;
       (e) coordination of processing applications and length of 
     time for processing between the regional bank's and the 
     Federal Reserve Board's staffs;
       (f) efforts to define consolidated home country supervision 
     on an international basis, and;
       (g) suggestions for streamlining the process.
                                 ______


                RIEGLE (AND D'AMATO) AMENDMENT NO. 1536

  Mr. RIEGLE (for himself and Mr. D'Amato) proposed an amendment to the 
bill S. 1275, supra; as follows:

       At the appropriate place in title III of the bill, insert 
     the following:

     SEC.   . CLARIFICATION OF PROVISION RELATING TO 
                   ADMINISTRATIVE AUTONOMY.

       Section 3(b)(3) of the Home Owners' Loan Act (12 U.S.C. 
     1462a) is amended by striking everything after ``Director'' 
     and inserting in lieu thereof ``(including agency rulemaking 
     proceedings and enforcement actions) unless otherwise 
     specifically provided by law.''.
                                 ______


                 KERRY (AND OTHERS) AMENDMENT NO. 1537

  Mr. KERRY (for himself, Mr. Daschle, Mrs. Murray, Ms. Moseley-Braun, 
Mr. Kohl, and Mr. Metzenbaum) proposed an amendment to the bill S. 
1275, supra; as follows:
       On page 160, after line 12, insert the following new title:
               TITLE IV--NATIONAL FLOOD INSURANCE REFORM

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``National Flood Insurance 
     Reform Act of 1994''.

     SEC. 402. CONGRESSIONAL FINDINGS.

       The Congress finds that--
       (1) the 4 principal objectives of the National Flood 
     Insurance Program are to limit increasing flood control and 
     disaster relief expenditures, to provide a prefunded 
     mechanism to more fully indemnify victims of flood-related 
     disasters, to limit unwise development in floodplains, and to 
     provide affordable Federal flood insurance for structures 
     located in areas of special flood hazards;
       (2) since 1968, the National Flood Insurance Program has 
     somewhat reduced the need for taxpayer funded disaster 
     assistance and has been a factor in motivating local 
     government mitigation efforts, but the National Flood 
     Insurance Program has also contributed to additional coastal 
     development by subsidizing building in hazardous eroding 
     areas, thereby encouraging imprudent land use in such areas;
       (3) the 2,600,000 flood insurance policies currently in 
     effect represent nearly $246,000,000,000 of taxpayer-backed 
     insurance, creating the risk of substantial losses to the 
     United States Treasury in the event of a catastrophic flood 
     event;
       (4) more than 70 percent of National Flood Insurance 
     Program policyholders are located in coastal communities, 
     with 2.5 percent of policyholders located in the most 
     hazardous coastal flood zones, many in eroding areas, 
     representing the greatest risk to the National Flood 
     Insurance Fund;
       (5) the National Flood Insurance Fund is currently 
     borrowing from the United States Treasury, adding to the 
     Federal deficit;
       (6) the borrowing authority of $1,000,000,000 given to the 
     Federal Emergency Management Agency under the National Flood 
     Insurance Program is much less than the $3,500,000,000 
     probable maximum loss to the Program in any given year;
       (7) repetitively damaged properties represent a substantial 
     problem for the National Flood Insurance Program, with over 
     40 percent of all flood insurance claims made on properties 
     that have been damaged more than once;
       (8) the current cost of Federal flood insurance to property 
     owners in eroding coastal areas is far below the actuarial 
     risk of loss;
       (9) the National Flood Insurance Program has failed to take 
     into account long term erosion in setting premium rates, 
     providing a hidden subsidy of erosion risks, because the 
     National Flood Insurance Program has paid claims for erosion 
     damage although the risk is not a component of the rate 
     structure for flood insurance;
       (10) reforms in the National Flood Insurance Program are 
     essential to increase participation in the Program, make the 
     Program more actuarially sound, decrease the risk of losses 
     to the United States Treasury, reduce subsidies that 
     encourage economically costly and environmentally hazardous 
     development in eroding areas; and address the problem of 
     properties repetitively damaged by floods;
       (11) a Federal flood insurance program that combines 
     predisaster mitigation efforts together with an insurance and 
     compliance program will reduce the physical and economic 
     effects of flood-related damage on the Federal Government, 
     State and local governments, and individuals;
       (12) requiring regulated lending institutions, government 
     agencies, and government-sponsored enterprises to make sure 
     that flood insurance coverage is purchased on all properties 
     in areas of special flood hazards in participating 
     communities will increase compliance with the program, and 
     increase the pool of funds, thereby decreasing the impact on 
     the National Flood Insurance Fund of individual flood events;
       (13) since coastal erosion hazard areas have not been 
     identified or adequately considered for the purposes of 
     insurance established under the National Flood Insurance Act 
     of 1968, other areas in the National Flood Insurance Program 
     have been forced to subsidize eroding coastal areas;
       (14) identification of erosion hazard areas and erosion 
     management can improve public safety, guide appropriate 
     development, help reduce erosion losses to existing 
     structures, and protect new structures from erosion losses, 
     thereby reducing Federal, State, local, and private 
     expenditures due to erosion;
       (15) a community-based approach to mitigation and erosion 
     management, to reduce losses in floodplains and to minimize 
     adverse impacts on natural and beneficial floodplain 
     functions, is the most comprehensive, effective, and cost-
     efficient method to reduce losses in floodplains and disaster 
     assistance expenditures, and such benefits could be enhanced 
     if combined with insurance protection for insured property 
     owners to meet the increased reconstruction costs required by 
     Federal, State, or local mitigation standards;
       (16) the National Flood Insurance Program should not 
     provide insurance on new construction in areas that will have 
     eroded in 30 years or less for new residences, and 60 years 
     or less for other forms of construction, and should instead 
     leave such insurance to the private sector, except if States 
     have adopted enforceable comprehensive programs limiting such 
     construction within at least a 30-year erosion area;
       (17) incentives in the form of reduced premium rates for 
     flood insurance under the National Flood Insurance Program 
     should be provided in communities that have adopted and 
     enforced exemplary or particularly effective measures for 
     comprehensive floodplain and erosion hazard area management; 
     and
       (18) these community-based, individual mitigation, and loss 
     prevention methods and incentives should be incorporated into 
     the National Flood Insurance Program.

     SEC. 403. DECLARATION OF PURPOSE UNDER THE NATIONAL FLOOD 
                   INSURANCE ACT OF 1968.

       Section 1302(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4001(e)) is amended--
       (1) by redesignating paragraphs (3), (4), and (5), as 
     paragraphs (4), (5), and (6), respectively; and
       (2) by inserting after paragraph (2) the following: ``(3) 
     encourage State and local governments and Federal agencies to 
     protect natural and beneficial floodplain functions that 
     reduce flood-related losses,''.

     SEC. 404. DEFINITION.

       As used in this title, the term ``Director'' means the 
     Director of the Federal Emergency Management Agency.
                        Subtitle A--Definitions

     SEC. 411. FLOOD DISASTER PROTECTION ACT OF 1973.

       (a) In General.--Section 3(a) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4003(a)) is amended--
       (1) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) `Federal entity for lending regulation' means the 
     Board of Governors of the Federal Reserve System, the Federal 
     Deposit Insurance Corporation, the Comptroller of the 
     Currency, the Office of Thrift Supervision, the National 
     Credit Union Administration Board, and the Farm Credit 
     Administration, and with respect to a particular regulated 
     lending institution means the entity primarily responsible 
     for the supervision of the institution;'';
       (2) in paragraph (6), by striking the period at the end and 
     inserting a semicolon; and
       (3) by inserting after paragraph (6) the following new 
     paragraphs:
       ``(7) `regulated lending institution' means a bank, savings 
     association, credit union, farm credit bank, Federal land 
     bank association, production credit association, or similar 
     institution subject to the supervision of a Federal entity 
     for lending regulation;
       ``(8) `Federal agency lender' means the Federal Housing 
     Administration, the Farmers Home Administration, the Small 
     Business Administration, and the Veterans' Administration, 
     when such agency makes loans secured by improved real estate 
     or a manufactured home; and
       ``(9) `servicer' means a person who receives any scheduled 
     periodic payments from a borrower pursuant to the terms of 
     any loan secured by a lien on real property, and who makes 
     the payments of principal and interest and such other 
     payments with respect to the amounts received from the 
     borrower as may be required.''.
       (b) Conforming Amendments.--
       (1) Requirements to purchase flood insurance.--Section 
     102(b) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(b)) is amended by striking ``(b) Each Federal 
     instrumentality responsible for the supervision, approval, 
     regulation, or insuring of banks, savings and loan 
     associations, or similar institutions shall by regulation 
     direct such institutions'' and inserting the following:
       ``(b) Flood Insurance Purchase Requirements.--Each Federal 
     entity for lending regulation shall by regulation direct 
     regulated lending institutions''.
       (2) Effect of nonparticipation in flood insurance 
     program.--Section 202(b) of the Flood Disaster Protection Act 
     of 1973 (42 U.S.C. 4106(b)) is amended by striking ``Federal 
     instrumentality described in such section shall by regulation 
     require the institutions'' and inserting ``Federal entity for 
     lending regulation (with respect to regulated lending 
     institutions)''.

     SEC. 412. NATIONAL FLOOD INSURANCE ACT OF 1968.

       (a) In General.--Section 1370(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121(a)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(7) the term `Federal entity for lending regulation' 
     means the Board of Governors of the Federal Reserve System, 
     the Federal Deposit Insurance Corporation, the Comptroller of 
     the Currency, the Office of Thrift Supervision, and the 
     National Credit Union Administration Board, and with respect 
     to a particular regulated lending institution, means the 
     entity primarily responsible for the supervision of the 
     institution;
       ``(8) the term `regulated lending institution' means a 
     bank, savings association, credit union, farm credit bank, 
     Federal land bank association, production credit association, 
     or similar institution subject to the supervision of a 
     Federal entity for lending regulation;
       ``(9) the term `Federal agency lender' means the Federal 
     Housing Administration, the Farmers Home Administration, the 
     Small Business Administration, and the Veterans' 
     Administration, when such agency makes loans secured by 
     improved real estate or a manufactured home;
       ``(10) the term `natural and beneficial floodplain 
     functions' means--
       ``(A) the functions associated with the natural or 
     relatively undisturbed floodplain that moderate flooding, 
     retain flood waters, reduce erosion and sedimentation, and 
     mitigate the effects of waves and storm surge from storms; 
     and
       ``(B) ancillary beneficial functions, including maintenance 
     of water quality, recharge of ground water, and provision of 
     fish and wildlife habitats;
       ``(11) the term `shoreline recession' means a net landward 
     movement of the shoreline caused by erosion, avulsion, or sea 
     level rise over a specified period of time;
       ``(12) the term `erosion hazard area' means, based on 
     erosion rate information and other historical data available, 
     an area where shoreline recession is likely to result in 
     damage to or loss of buildings and infrastructure within a 
     60-year period;
       ``(13) the term `erosion control measures' means a 
     community's efforts to control erosion through nonstructural 
     and structural projects;
       ``(14) the term `baseline reference feature' means a fixed, 
     identifiable, and prevalent physical or mapped feature of a 
     shoreline from which shoreline recession shall be measured;
       ``(15) the term `readily movable structure' means a 
     permanent structure of less than 5,000 square feet that is 
     sited and built to accomplish relocation;
       ``(16) the term `repetitive loss structure' means an 
     insured property that has incurred flood-related damage on 2 
     occasions during a 10-year period ending on the date of the 
     event for which a second claim is made, in which the cost of 
     repair, on the average, equaled or exceeded 25 percent of the 
     value of the structure at the time of each flood event;
       ``(17) the term `cost of compliance with land use and 
     control measures' means the cost of elevating a structure so 
     that the structure is in compliance with the minimum 
     performance standards adopted by the State or community 
     pursuant to section 1315 of the National Flood Insurance Act 
     of 1968, or the cost of relocation, demolition, or 
     floodproofing of the structure; and
       ``(18) the term `servicer' means any person who receives 
     any scheduled periodic payments from a borrower pursuant to 
     the terms of any loan secured by a lien on real property, and 
     who makes the payments of principal and interest and such 
     other payments with respect to the amounts received from the 
     borrower as may be required.''.
       (b) Conforming Amendment.--Section 1322(d) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4029(d)) is amended by 
     striking ``federally supervised, approved, regulated or 
     insured financial institution'' and inserting ``regulated 
     lending institution''.
           Subtitle B--Compliance and Increased Participation

     SEC. 421. EXPANDED FLOOD INSURANCE PURCHASE REQUIREMENTS.

       (a) In General.--Section 102(b) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(b)), as amended by 
     section 411(b)(1), is amended--
       (1) by striking ``Each Federal entity'' and inserting the 
     following:
       ``(1) In general.--Each Federal entity'';
       (2) by inserting before ``shall by regulation'' the 
     following: ``(after consultation and coordination with the 
     Federal Financial Institutions Examination Council 
     established under the Federal Financial Institutions 
     Examination Council Act of 1974)''; and
       (3) by adding at the end the following new paragraphs:
       ``(2) Procedures implemented by fnma, fhlmc, and famc.--The 
     Federal National Mortgage Association, the Federal Home Loan 
     Mortgage Corporation, and the Federal Agricultural Mortgage 
     Corporation shall implement procedures reasonably designed to 
     assure that each loan that is--
       ``(A) secured by improved real estate or a manufactured 
     home located in an area that has been identified at the time 
     of the origination of the loan by the Director as an area of 
     special flood hazards and in which flood insurance is 
     available under the National Flood Insurance Act of 1968; and
       ``(B) purchased by any such entity;
     is covered for the term of the loan by flood insurance in the 
     amount provided in paragraph (1).
       ``(3) Procedures implemented by federal agency lenders.--
     Each Federal agency lender shall implement procedures 
     reasonably designed to assure that all property--
       ``(A) that secures loans that the Federal agency lender 
     makes, increases, extends, or renews; and
       ``(B) that is improved by real estate or a manufactured 
     home located in an area that has been identified at the time 
     of the origination of the loan by the Director as an area of 
     special flood hazards and in which flood insurance is 
     available under the National Flood Insurance Act of 1968;

     is covered for the term of the loan by flood insurance in the 
     amount provided in paragraph (1).''.
       (b) Effective Date.--The provisions of this section shall 
     apply to all transactions occurring after the expiration of 
     the 1-year period beginning on the date of enactment of this 
     title.

     SEC. 422. ESCROW OF FLOOD INSURANCE PAYMENTS.

       (a) In General.--Section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding 
     at the end the following new subsection:
       ``(d) Escrow of Flood Insurance Payments.--
       ``(1) By regulated lending institutions.--Each Federal 
     entity for lending regulation, after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council, shall by regulation require that, if a 
     regulated lending institution requires the escrowing of 
     taxes, insurance premiums, fees, or any other charges for a 
     loan secured by residential real estate or manufactured 
     homes, all charges for flood insurance under this title for 
     the property shall be paid by the borrower to the institution 
     for the duration of the period during which the regulated 
     lending institution maintains an escrow account. Upon receipt 
     of a notice from the Director or the provider of the 
     insurance that insurance premiums, fees, or other charges are 
     due, the institution shall pay from the escrow account to the 
     provider of the insurance the amount of insurance premiums, 
     fees, or other charges owed.
       ``(2) By federal agency lenders.--If a Federal agency 
     lender requires the escrowing of taxes, insurance premiums, 
     fees, or any other charges, then any charges for flood 
     insurance under this title for the residential real estate or 
     the manufactured home shall be paid by the borrower to the 
     Federal agency lender for the duration of the period during 
     which the Federal agency lender maintains an escrow account. 
     Upon receipt of a notice from the Director or the provider of 
     the insurance that insurance premiums, fees, or other charges 
     are due, the Federal agency lender shall pay from the escrow 
     account to the provider of the insurance the amount of 
     insurance premiums, fees or other charges owed.
       ``(3) Applicability of real estate settlement procedures 
     act.--Escrow accounts used to collect flood insurance 
     premiums, fees, or other charges under this subsection shall 
     be subject to the provisions of section 10 of the Real Estate 
     Settlement Procedures Act of 1974.''.
       (b) Applicability.--Section 102(d) of the Flood Disaster 
     Protection Act of 1973, as added by subsection (a), shall 
     apply 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 this title.

     SEC. 423. NOTICE REQUIREMENTS.

       Section 1364 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104a) is amended to read as follows:

     ``SEC. 1364. NOTICE REQUIREMENTS.

       ``(a) Lending Institutions.--Each Federal entity for 
     lending regulation, after consultation and coordination with 
     the Federal Financial Institutions Examination Council, shall 
     by regulation require that before a regulated lending 
     institution makes, increases, extends, or renews a loan 
     secured by improved real estate or a manufactured home 
     located in an area that has been identified by the Director 
     as an area of special flood hazards, the institution shall 
     notify the borrower of the special flood hazards and of the 
     need to purchase and maintain flood insurance.
       ``(b) Federal Agency Lenders.--Before a Federal agency 
     lender makes, increases, extends, or renews a loan secured by 
     improved real estate or a manufactured home located in an 
     area that has been identified by the Director as an area of 
     special flood hazards, the Federal agency lender shall notify 
     the borrower of the special flood hazards and of the need to 
     purchase and maintain flood insurance.
       ``(c) Participating Communities.--The Director shall by 
     regulation require each participating community, upon 
     receiving the semiannual list prepared by the Director of all 
     revisions to and updates of flood insurance rate maps made 
     during the preceding 6 months, to determine whether any 
     properties in their community have been affected, and to 
     provide annual notice by mail, notice by publication, notice 
     on tax assessments, or notice by other reasonable method, to 
     regulated lending institutions that are known to lend in the 
     community, and to the owners of all properties newly 
     determined to be, or no longer to be, in an area of special 
     flood hazards, of the flood insurance purchase requirements 
     under section 102(b).
       ``(d) Contents of Notice.--Notification required by this 
     section shall include a warning, in a form to be established 
     by the Director, stating that the real estate or manufactured 
     home securing the loan is located in an area of special flood 
     hazards, a description of the flood insurance purchase 
     requirements under section 102(b), a statement that flood 
     insurance coverage may be purchased under the National Flood 
     Insurance Program and may also be available from private 
     insurers, and any other information that the Director 
     considers necessary to carry out the purposes of the National 
     Flood Insurance Program.''.

     SEC. 424. PLACEMENT OF FLOOD INSURANCE BY REGULATED LENDING 
                   INSTITUTION, FEDERAL AGENCY LENDER, OR 
                   SERVICER.

       (a) Required Actions by Lender.--Section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a), as amended 
     by section 422(a), is amended by adding at the end the 
     following new subsection:
       ``(e) Required Actions by Lender.--
       ``(1) Notification to borrower of lack of coverage.--If, at 
     the time of origination or at any other time during the term 
     of a loan secured by improved real estate or by a 
     manufactured home located in an area that has been identified 
     by the Director as an area of special flood hazards and in 
     which flood insurance is available under this title, a 
     regulated lending institution, Federal agency lender, or 
     servicer determines that the building or manufactured home 
     and any personal property securing the loan held or serviced 
     by the regulated lending institution, Federal agency lender, 
     or servicer is not covered by flood insurance, in an amount 
     not less than the amount required by subsection (b)(1), the 
     regulated lending institution, Federal agency lender, or 
     servicer shall notify the borrower, in a form to be 
     established by the Director, that the borrower should obtain, 
     at the borrower's expense, an amount of flood insurance that 
     is not less than the amount required by subsection (b)(1), 
     for the term of the loan. If, not later than 45 days after 
     receiving such notification, the borrower fails to purchase 
     such flood insurance, the regulated lending institution, 
     Federal agency lender, or servicer shall purchase the 
     insurance on behalf of the borrower and may charge the 
     borrower for the cost of premiums and fees incurred by the 
     regulated lending institution, Federal agency lender, or 
     servicer in purchasing the insurance.
       ``(2) Review.--
       ``(A) By the director.--A borrower may request, based upon 
     the submission of supporting technical data, that the 
     Director review a determination that the improved real estate 
     or manufactured home securing the loan is located in an area 
     of special flood hazards. Not later than 45 days after the 
     Director receives the request, the Director shall review the 
     determination and provide the borrower with a letter stating 
     whether or not the property is in an area of special flood 
     hazards. The determination of the Director shall be final.
       ``(B) Insurance not required.--If a person is provided by 
     the borrower with a letter issued by the Director pursuant to 
     subparagraph (A) during the preceding 1-year period, stating 
     that the property is not in an area of special flood hazards, 
     such person shall have no obligation under this title to 
     require the purchase of flood insurance on the property.''.
       (b) Applicability.--
       (1) In general.--Except as provided in paragraph (2), 
     section 102(e) of the Flood Disaster Protection Act of 1973, 
     as added by subsection (a), shall apply to all loans 
     outstanding on or after the date of enactment of this title.
       (2) Loans regulated by the farm credit administration.--
     With respect to loans held by institutions regulated by the 
     Farm Credit Administration, section 102(e) of the Flood 
     Disaster Protection Act of 1973, as added by subsection (a), 
     shall apply only to loans originating on or after the date of 
     enactment of this title.

     SEC. 425. STANDARD FLOOD HAZARD DETERMINATION FORMS.

       (a) In General.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 1365. STANDARD FLOOD HAZARD DETERMINATION FORMS.

       ``(a) Development.--The Director, in consultation with the 
     Federal entities for lending regulation, and after notice and 
     comment, shall develop a standard flood hazard determination 
     form (hereafter in this section referred to as the 
     `determination form') for use in connection with loans 
     secured by improved real estate or a manufactured home 
     located in an area of special flood hazards and in which 
     flood insurance is available under this title. The 
     determination form may be maintained in a printed, 
     computerized, or electronic manner.
       ``(b) Design and Contents.--The determination form shall 
     state whether the property is in an area of special flood 
     hazards, the risk premium rate classification established for 
     the special flood hazard area in which the property is 
     located, the complete map and panel numbers for the property, 
     and the date of the map used for the determination. If the 
     complete map and panel numbers for the property are not 
     available because the property is not located in a community 
     that is participating in the National Flood Insurance Program 
     or because no map exists for the relevant area, the 
     determination form shall so state.
       ``(c) Required Use.--Each Federal entity for lending 
     regulation shall by regulation require the use of the 
     determination form by regulated lending institutions. Each 
     Federal agency lender shall by regulation provide for the use 
     of the determination form. The Federal National Mortgage 
     Association, the Federal Home Loan Mortgage Corporation, and 
     the Federal Agricultural Mortgage Corporation shall require 
     use of the determination form by any person from whom they 
     purchase loans.
       ``(d) Guarantees Regarding Information.--In recording 
     information on a determination form, a person may rely on 
     information provided by a third party to the extent that the 
     third party guarantees the accuracy of the information.
       ``(e) Reliance on Previous Determination.--A person or 
     institution increasing, extending, renewing, or purchasing a 
     loan may rely on a previous determination as to whether 
     property is in a special flood or erosion hazard area, if the 
     previous determination was made not more than 5 years before 
     the date of the transaction, and the basis for the previous 
     determination has been set forth on a determination form.''.
       (b) Applicability.--Section 1365 of the National Flood 
     Insurance Act of 1968, as added by subsection (a), shall 
     apply to all loans originated on or after the expiration of 
     the 6-month period beginning on the date the standard flood 
     hazard determination form is finalized by the Director.

     SEC. 426. EXAMINATIONS REGARDING COMPLIANCE BY REGULATED 
                   LENDING INSTITUTIONS.

       (a) Amendment to Federal Deposit Insurance Act.--Section 10 
     of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
     amended by adding at the end the following new subsection:
       ``(h) Flood Hazard Insurance Compliance by Insured 
     Depository Institutions Required.--
       ``(1) Examinations.--The appropriate Federal banking agency 
     shall, during each scheduled on-site examination required by 
     this section, determine whether the insured depository 
     institution is complying with the requirements of the 
     National Flood Insurance Program.
       ``(2) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994, 
     and biannually thereafter for the next 4 years, each 
     appropriate Federal banking agency shall submit a report to 
     Congress on compliance by insured depository institutions 
     with the requirements of the National Flood Insurance 
     Program. The report shall include a description of the 
     methods used to determine compliance, the number of 
     institutions examined during the reporting year, a listing 
     and total number of institutions found to be in 
     noncompliance, actions taken to correct incidents of 
     noncompliance, and an analysis of compliance, including a 
     discussion of any trends, patterns, and problems, and 
     recommendations regarding reasonable actions to improve the 
     efficiency of the examinations processes.''.
       (b) Amendment to the Federal Credit Union Act.--Section 204 
     of the Federal Credit Union Act (12 U.S.C. 1784) is amended 
     by adding at the end the following new subsection:
       ``(e) Flood Hazard Insurance Compliance by Insured Credit 
     Unions Required.--
       ``(1) Examination.--The Board shall, during each 
     examination conducted under this section, determine whether 
     the insured credit union is complying with the requirements 
     of the National Flood Insurance Program.
       ``(2) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994, 
     and biannually thereafter for the next 4 years, the Board 
     shall submit a report to Congress on compliance by insured 
     credit unions with the requirements of the National Flood 
     Insurance Program. The report shall include a description of 
     the methods used to determine compliance, the number of 
     insured credit unions examined during the reporting year, a 
     listing and total number of insured credit unions found to be 
     in noncompliance, actions taken to correct incidents of 
     noncompliance, and an analysis of compliance, including a 
     discussion of any trends, patterns, and problems, and 
     recommendations regarding reasonable actions to improve the 
     efficiency of the examinations processes.''.

     SEC. 427. PENALTIES AND CORRECTIVE ACTIONS FOR FAILURE TO 
                   REQUIRE FLOOD INSURANCE, ESCROW, OR NOTIFY.

       Section 102 of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4012a), as amended by sections 422 and 424, is 
     amended by adding at the end the following new subsections:
       ``(f) Civil Penalties.--
       ``(1) In general.--A regulated lending institution that is 
     found to have a pattern or practice of violating this section 
     may be assessed a civil penalty by the appropriate Federal 
     entity for lending regulation of not more than $350 for each 
     such violation. A penalty under this subsection may be issued 
     only after notice and an opportunity for a hearing on the 
     record.
       ``(2) Total amount.--The total amount of penalties assessed 
     under this subsection against a single regulated lending 
     institution for any calendar year may not exceed $100,000.
       ``(3) Sales or transfers.--The subsequent sale or other 
     transfer of a loan by a regulated lending institution that 
     has committed a violation of this section shall not affect 
     the liability of the transferring institution with respect to 
     any penalty under this subsection. An institution shall not 
     be liable for a violation relating to a loan committed by 
     another institution that previously held the loan.
       ``(4) 3-year limit.--No penalty may be imposed under this 
     subsection after the expiration of the 3-year period 
     beginning on the date of the occurrence of the violation.
       ``(g) Additional Actions.--If a Federal entity for lending 
     regulation determines--
       ``(1) that a regulated lending institution has demonstrated 
     a pattern and practice of noncompliance in violation of the 
     regulations issued pursuant to subsection (b) or subsection 
     (d) or the notice requirements under section 1364 of the 
     National Flood Insurance Act of 1968; and
       ``(2) that the regulated lending institution has not 
     demonstrated measurable improvement in compliance despite the 
     issuance of penalties under subsection (f);

     the agency may require the regulated lending institution to 
     take such remedial actions as are necessary to ensure that 
     the regulated lending institution is in satisfactory 
     compliance with the requirements of the National Flood 
     Insurance Program.''.

     SEC. 428. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

       Section 1006 of the Federal Financial Institutions 
     Examination Council Act of 1978 (12 U.S.C. 3305) is amended 
     by adding at the end the following new subsection:
       ``(g) Flood Insurance.--The Council shall consult with and 
     assist the Federal entities for lending regulation, as such 
     term is defined in section 1370(a)(7) of the National Flood 
     Insurance Act of 1968, in developing and coordinating uniform 
     standards and requirements for use by regulated lending 
     institutions under the National Flood Insurance Program.''.

     SEC. 429. CONFORMING AMENDMENT.

       The section heading for section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a) is amended to read 
     as follows:


   ``flood insurance purchase and compliance requirements and escrow 
                              accounts''.

Subtitle C--Ratings and Incentives for Community Floodplain Management 
                                Programs

     SEC. 431. COMMUNITY RATING SYSTEM AND INCENTIVES FOR 
                   COMMUNITY FLOODPLAIN MANAGEMENT.

       (a) Requirement for Participation in Flood Insurance 
     Program.--Section 1315 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4022) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 1315. STATE AND LOCAL LAND USE CONTROLS.'';

       (2) by striking ``After December'' and inserting the 
     following:
       ``(a) Requirement for Participation in Flood Insurance 
     Program.--After December''; and
       (3) by adding at the end the following new subsection:
       ``(b) Community Rating System and Incentives for Community 
     Floodplain Management.--
       ``(1) Authority and goals.--The Director shall carry out a 
     community rating system program to evaluate the measures 
     adopted by communities voluntarily participating in the 
     community rating system, to provide incentives for measures 
     to reduce the risk of flood or erosion damage that exceed the 
     criteria set forth in section 1361, to encourage adoption of 
     more effective measures for floodplain and erosion 
     management, and to promote the reduction of Federal flood 
     insurance losses.
       ``(2) Incentives.--The program shall provide incentives in 
     the form of credits on premium rates for flood insurance 
     coverage in communities that the Director determines have 
     adopted and enforced measures to reduce the risk of flood and 
     erosion damage that exceed the criteria set forth in section 
     1361. In providing incentives under this paragraph, the 
     Director may provide for credits to flood insurance premium 
     rates in communities that the Director determines have--
       ``(A) implemented measures to protect natural and 
     beneficial floodplain functions; and
       ``(B) adopted erosion control measures.
       ``(3) Credits.--The credits on premium rates for flood 
     insurance coverage shall be based on the estimated reduction 
     in flood and erosion damage risks resulting from the measures 
     adopted by the community under this program.''.
       (b) Reports.--Two years after the date of enactment of this 
     title and biannually thereafter, the Director shall submit a 
     report to the Congress regarding the program under section 
     1315(a) of the National Flood Insurance Act of 1968. Each 
     report shall include an analysis of the cost-effectiveness 
     and other accomplishments and shortcomings of the program and 
     any recommendations of the Director for legislation regarding 
     the program.

     SEC. 432. FUNDING.

       Section 1310(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4017(a)) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding after paragraph (5) the following new 
     paragraph:
       ``(6) for carrying out the program under section 
     1315(b);''.
           Subtitle D--Mitigation of Flood and Erosion Risks

     SEC. 441. MITIGATION ASSISTANCE IN FEDERAL INSURANCE 
                   ADMINISTRATION.

       Section 1105(a) of the Housing and Urban Development Act of 
     1968 (42 U.S.C. 4129) is amended--
       (1) by striking ``(a) There is hereby'' and inserting the 
     following:
       ``(a) Establishment.--There is hereby''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Coordination of Mitigation Activities.--The Director 
     shall coordinate all mitigation activities, including the 
     administration of the program for mitigation assistance under 
     section 1367. These activities shall include the development 
     and implementation of various mitigation activities and 
     techniques, the provision of advice and assistance regarding 
     mitigation to States, communities, and individuals, including 
     planning assistance under section 1367(d), coordination with 
     other Federal flood and erosion mitigation efforts, and 
     coordination with State and local governments and public and 
     private agencies and organizations for collection and 
     dissemination of information regarding erosion.''.

     SEC. 442. AUTHORIZATION OF NATIONAL FLOOD AND EROSION 
                   MITIGATION FUNDS UNDER SECTION 1362.

       Chapter III of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4101 et seq.), as amended by section 425, is amended 
     by adding at the end the following new section:

     ``SEC. 1366. NATIONAL FLOOD AND EROSION MITIGATION PROGRAM.

       ``(a) Expenditures.--For flood and erosion mitigation 
     activities authorized under section 1367, the Director may 
     expend from the National Flood Insurance Fund--
       ``(1) up to $10,000,000 in the fiscal year ending September 
     30, 1994;
       ``(2) up to $15,000,000 in the fiscal year ending September 
     30, 1995;
       ``(3) up to $20,000,000 in the fiscal year ending September 
     30, 1996;
       ``(4) up to $20,000,000 in each fiscal year thereafter; and
       ``(5) any amounts recaptured under section 1367(i).
       ``(b) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994 
     and biannually thereafter, the Director shall submit a report 
     to the Congress describing the status of flood and erosion 
     mitigation activities carried out with funds authorized under 
     this section.''.

     SEC. 443. STATE AND COMMUNITY MITIGATION ASSISTANCE PROGRAM.

       (a) In General.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as amended by 
     sections 425 and 442, is amended by adding at the end the 
     following new section:

     ``SEC. 1367. STATE AND COMMUNITY MITIGATION ASSISTANCE.

       ``(a) Authority.--The Director shall develop and implement 
     a financial assistance program with amounts made available 
     under section 1366 to States and communities for planning and 
     activities designed to reduce the risk of flood and erosion 
     damage to insured structures.
       ``(b) Mitigation Plan Requirement.--To be eligible to 
     receive financial mitigation assistance, a State or community 
     shall develop, and have approved by the Director, a flood and 
     erosion risk mitigation plan (hereafter in this section 
     referred to as a `mitigation plan'), that is consistent with 
     the criteria established by the Director under section 1361. 
     The mitigation plan shall include a comprehensive strategy 
     for mitigation activities adopted by the State or community 
     following a public hearing.
       ``(c) Notification of Approval.--Not later than 120 days 
     after the submission of a mitigation plan, the Director shall 
     notify the State or community submitting the plan of the 
     Director's approval or disapproval of the plan. If the 
     Director does not approve a plan, the Director shall notify 
     the State or community in writing of the reasons for such 
     disapproval.
       ``(d) Planning Assistance.--
       ``(1) In general.--The Director shall make planning 
     assistance available to States and communities for developing 
     mitigation plans.
       ``(2) Funding.--From any amounts made available for use 
     under section 1366 of the National Flood Insurance Act of 
     1968 in any fiscal year, the Director may use not more than 
     $1,500,000 to provide planning assistance grants to States or 
     communities to develop mitigation plans under this 
     subsection.
       ``(3) Limitations.--
       ``(A) Timing.--A grant for planning assistance may be 
     awarded to a State or community once every 5 years and each 
     grant may cover a period of 1 to 3 years.
       ``(B) Amount.--A grant for planning assistance may not 
     exceed--
       ``(i) $150,000, to any State; or
       ``(ii) $50,000, to any community.
       ``(C) Geographic.--Not more than $300,000 may be awarded to 
     any 1 State and all communities located in that State for 
     planning assistance in each fiscal year.
       ``(e) Eligible Mitigation Activities.--The Director shall 
     determine eligibility for assistance under this section for 
     mitigation activities that shall be technically feasible and 
     cost-effective. These activities may include--
       ``(1) elevation, relocation, demolition, or floodproofing 
     of structures;
       ``(2) acquisition by States and communities of property 
     substantially damaged by flood for public use as the Director 
     determines is consistent with sound land management and use 
     in such area; and
       ``(3) the provision of technical assistance by States to 
     communities and individuals to conduct eligible mitigation 
     activities.
       ``(f) Limitations on Mitigation Assistance.--
       ``(1) Amount.--The amount of mitigation assistance provided 
     under subsection (e) may not exceed in any 5-year period--
       ``(A) $10,000,000, to any State; or
       ``(B) $3,300,000, to any community.
       ``(2) Geographic.--Not more than $20,000,000 may be awarded 
     to any 1 State and all communities located in that State for 
     mitigation assistance in any 5-year period.
       ``(g) Matching Requirement.--The Director may provide 
     mitigation assistance to a State or community in an amount 
     not to exceed 3 times the amount that the State or community 
     certifies, as the Director shall require, that the State or 
     community will contribute from other funds to carry out 
     mitigation planning under subsection (d) and eligible 
     activities under subsection (e).
       ``(h) Oversight of Mitigation Plans.--The Director shall 
     conduct oversight of recipients of mitigation assistance to 
     ensure that the mitigation assistance is used in compliance 
     with approved plans.
       ``(i) Recapture.--If the Director determines that a State 
     or community that has received mitigation assistance has not 
     carried out the mitigation activities as set forth in the 
     mitigation plan, the Director shall recapture any unexpended 
     amounts and deposit the amounts in the Fund.
       ``(j) Definition of Community.--For purposes of this 
     section, the term `community' means a political subdivision 
     that has zoning and building code jurisdiction over a 
     particular area of special flood hazards, and that is 
     participating in the National Flood Insurance Program.
       ``(k) Preferences for Mitigation Grants to Communities.--In 
     providing mitigation grants to communities under this 
     section, the Director shall give preference to communities 
     that--
       ``(1) have the highest rates of participation by property 
     owners in the Federal flood insurance program;
       ``(2) have qualified for credits on premium rates under 
     section 1315(b); and
       ``(3) have experienced repetitive losses that have been 
     most costly to the Fund.''.
       (b) Regulations.--Not later than 6 months after date of 
     enactment of this title, the Director shall issue regulations 
     implementing section 1367 of the National Flood Insurance Act 
     of 1968, as added by subsection (a).

     SEC. 444. REPEAL OF PROGRAM FOR PURCHASE OF CERTAIN INSURED 
                   PROPERTIES.

       (a) Repeal.--Section 1362 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4103) is repealed.
       (b) Transition.--Notwithstanding the repeal under 
     subsection (a), the Director may continue to purchase 
     property under subsections (a) and (b) of section 1362 of the 
     National Flood Insurance Act of 1968, as such section existed 
     immediately before the date of enactment of this title, for a 
     period of 1 year beginning on the date of enactment of this 
     title.

     SEC. 445. TERMINATION OF EROSION THREATENED STRUCTURES 
                   PROGRAM.

       (a) In General.--Section 1306 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013) is amended by striking 
     subsection (c).
       (b) Transition.--The Director may pay amounts under flood 
     insurance contracts for demolition or relocation of 
     structures as provided in section 1306(c) of the National 
     Flood Insurance Act of 1968 (as in effect immediately before 
     the date of enactment of this title) only during the 1-year 
     period beginning on the date of enactment of this title.

     SEC. 446. LIMITATIONS ON NEW FLOOD INSURANCE COVERAGE IN 
                   EROSION HAZARD AREAS.

       The National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
     seq.) is amended by inserting after section 1313 the 
     following new section:

     ``SEC. 1314. PROPERTIES LOCATED WITHIN 30-YEAR AND 60-YEAR 
                   EROSION HAZARD AREAS.

       ``(a) Properties Located Within 30-Year Erosion Hazard 
     Area.--After the establishment of erosion hazard areas under 
     section 1360(i), the Director may not make flood insurance 
     available within a 30-year erosion hazard area with respect 
     to any new--
       ``(1) construction; or
       ``(2) addition to an existing structure, if the structure 
     is not readily movable.
       ``(b) Properties Located Within 60-Year Erosion Hazard Area 
     and Outside 30-Year Erosion Hazard Area.--After the 
     establishment of erosion hazard areas under section 1360(i), 
     the Director may not make flood insurance available with 
     respect to any new--
       ``(1) nonresidential structure;
       ``(2) residential structure that is not readily movable; or
       ``(3) addition to an existing structure, if the addition 
     makes the structure not readily movable;

     that is constructed or relocated landward of the 30-year 
     erosion hazard area and within the 60-year erosion hazard 
     area established by the Director under such section.
       ``(c) State Erosion Hazard Management Programs.--
     Notwithstanding subsections (a) and (b), if a State has 
     adopted and put into effect an erosion management program 
     which has enforceable provisions for the prohibition or 
     restriction of new construction or additions to existing 
     structures seaward of setback lines based upon estimated 
     shoreline recession over a minimum of 30 years determined 
     from a fixed baseline feature, the Director shall continue to 
     make flood insurance available for new construction or 
     additions to existing structures that are landward of the 
     setback line established by the State or community, including 
     new construction or additions to existing structures which 
     may be lawfully permitted and constructed pursuant to 
     exemptions or variances from State setback requirements in 
     effect prior to the effective date of this section, and 
     otherwise in conformance with all State and community 
     standards for building design and erosion.''.

     SEC. 447. COORDINATION WITH COASTAL ZONE MANAGEMENT PROGRAMS.

       (a) In General.--In the implementation of this title and 
     the amendments made pursuant to this title, the Director 
     shall consult with the Under Secretary of Commerce for Oceans 
     and Atmosphere and representatives from State coastal zone 
     management programs to promote full coordination of the 
     erosion management provisions of the National Flood Insurance 
     Act of 1968 as amended by this title, and the provisions of 
     the Coastal Zone Management Act of 1972. The Director shall, 
     to the greatest extent possible, utilize State management 
     programs approved under the Coastal Zone Management Act of 
     1972 to facilitate development and implementation of 
     regulations and guidelines for this title.
       (b) Economic and Environmental Impact Study of Erosion 
     Hazard Areas.--Not later than 1 year after the date of 
     enactment of this title, the Director, in coordination with 
     the Under Secretary of Commerce for Oceans and Atmosphere, 
     shall submit to the Congress a report assessing the economic 
     and environmental impact of the establishment of actuarial 
     rates in communities identified as having erosion hazard 
     areas. The report shall include--
       (1) a listing for each State of communities identified as 
     having erosion hazard areas under section 1360(i) of the 
     National Flood Insurance Act of 1968;
       (2) an assessment of the economic impact of assessing 
     actuarial rates in erosion hazard areas; and
       (3) an assessment of the impact of the imposition of 
     actuarial rates in erosion hazard areas on natural and 
     beneficial floodplain functions within areas of special flood 
     hazards.
       (c) Coordination Report.--The Director and the Under 
     Secretary of Commerce for Oceans and Atmosphere shall jointly 
     prepare a report that details the proposed mechanisms for 
     achieving the coordination required in subsection (a). This 
     report shall be transmitted to the Congress not later than 1 
     year after the date of enactment of this title.
                 Subtitle E--Flood Insurance Task Force

     SEC. 451. FLOOD INSURANCE INTERAGENCY TASK FORCE.

       (a) Establishment.--There is established an interagency 
     task force to be known as the Flood Insurance Task Force 
     (hereafter in this title referred to as the ``Task Force'').
       (b) Membership.--
       (1) In general.--The Task Force shall consist of 13 
     members, who shall be the designees of--
       (A) the Director;
       (B) the Federal Housing Commissioner;
       (C) the Secretary of Veterans Affairs;
       (D) the Administrator of the Farmers Home Administration;
       (E) the Administrator of the Small Business Administration;
       (F) each member of the Federal Financial Institutions 
     Examination Council;
       (G) the chairman of the Board of Directors of the Federal 
     Home Loan Mortgage Corporation;
       (H) the chairman of the Board of Directors of the Federal 
     National Mortgage Association; and
       (I) the chairman of the Federal Agricultural Mortgage 
     Corporation.
       (2) Qualifications.--Members of the Task Force shall be 
     designated for membership on the Task Force by reason of 
     demonstrated knowledge and competence regarding the National 
     Flood Insurance Program.
       (c) Duties.--The Task Force shall--
       (1) make recommendations to the head of each Federal agency 
     and corporation referred to under subsection (b)(1) regarding 
     the establishment or adoption of standardized enforcement 
     procedures among such agencies and corporations responsible 
     for enforcing compliance with the requirements under the 
     National Flood Insurance Program to ensure the fullest 
     possible compliance with such requirements;
       (2) study the extent to which Federal agencies and the 
     secondary mortgage market can provide assistance in ensuring 
     compliance with the requirements under the National Flood 
     Insurance Program;
       (3) study the extent to which existing programs of Federal 
     agencies and corporations for compliance with the 
     requirements under the National Flood Insurance Program can 
     serve as a model for other Federal agencies responsible for 
     enforcing compliance, and submit to the Congress a report 
     describing the study and any conclusions;
       (4) study--
       (A) the extent to which the flood insurance premium rate 
     structure could be revised to--
       (i) minimize existing premium rate subsidies;
       (ii) reduce or eliminate disaster assistance payments in 
     high-risk erosion areas;
       (iii) incorporate premium rate adjustments for erosion 
     hazards; and
       (iv) account for catastrophic loss events; and
       (B) how changes in the premium rate structure could 
     potentially impact other Federal disaster assistance 
     programs;
       (5) propose strategies to establish an actuarial-based 
     premium structure to account for all insurable risks 
     identified under the National Flood Insurance Act of 1968, as 
     amended by this title; and
       (6) develop guidelines regarding enforcement and compliance 
     procedures, based on the studies and findings of the Task 
     Force and publishing the guidelines in a usable format.
       (d) Reports.--Not later than 2 years after the date of 
     enactment of this title, the Task Force shall transmit to the 
     Congress a report describing its studies and any conclusions.
       (e) Compensation.--Members of the Task Force shall receive 
     no additional compensation by reason of their service on the 
     Task Force.
       (f) Chairperson.--The Director shall appoint 1 member to 
     serve as the chairperson of the Task Force (hereafter in this 
     section referred to as the ``Chairperson'').
       (g) Meetings and Action.--The Task Force shall meet at the 
     call of the Chairperson or a majority of the members of the 
     Task Force and may take action by a vote of the majority of 
     the members. The Federal Insurance Administrator shall 
     coordinate and call the initial meeting of the Task Force.
       (h) Officers.--The Chairperson may appoint officers to 
     carry out the duties of the Task Force under subsection (c).
       (i) Staff of Federal Agencies.--Upon the request of the 
     Chairperson, the head of any of the Federal agencies and 
     corporations referred to in subsection (b)(1) may detail, on 
     a nonreimbursable basis, any of the personnel of the agency 
     to the Task Force to assist the Task Force in carrying out 
     its duties under this title.
       (j) Powers.--In carrying out this section, the Task Force 
     may hold hearings, sit and act at times and places, take 
     testimony, receive evidence and assistance, provide 
     information, and conduct research as the Task Force considers 
     appropriate.
       (k) Termination.--The Task Force shall terminate 2 years 
     after the date on which all members of the Task Force have 
     been designated under subsection (b)(1).
                  Subtitle F--Miscellaneous Provisions

     SEC. 461. MAXIMUM FLOOD INSURANCE COVERAGE AMOUNTS.

       (a) In General.--Section 1306(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``and'' at the end of clause (i); and
       (B) by striking clause (iii);
       (2) by striking subparagraph (B) of paragraph (1) and 
     inserting the following new subparagraph:
       ``(B) in the case of any nonresidential property, including 
     churches--
       ``(i) $100,000 aggregate liability for each structure; and
       ``(ii) $100,000 aggregate liability for any contents 
     related to each structure;'';
       (3) by striking subparagraph (C) of paragraph (1);
       (4) in paragraph (2), by striking ``so as to enable'' and 
     all that follows through the end of the paragraph and 
     inserting ``up to an amount, including the limits specified 
     in clause (i) of paragraph (1)(A), of $250,000 multiplied by 
     the number of dwelling units in the building;'';
       (5) in paragraph (3), by striking ``so as to enable'' and 
     all that follows through the end of the paragraph and 
     inserting ``up to an amount of $90,000 for any single-family 
     dwelling and $240,000 for any residential structure 
     containing more than one dwelling unit;''; and
       (6) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) in the case of any nonresidential property, including 
     churches, additional flood insurance in excess of the limits 
     specified in clauses (i) and (ii) of paragraph (1)(B) shall 
     be made available to every insured upon renewal and every 
     applicant for insurance up to an amount of $2,400,000 for 
     each structure and $2,400,000 for any contents related to 
     each structure; and''.
       (b) Actuarial Risk Premiums on Repetitive Loss 
     Structures.--Section 1306(b) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end; and
       (2) by striking paragraph (6) and inserting the following 
     new paragraph:
       ``(6) upon determining that a property is a repetitive loss 
     structure, and after making a payment to the insured under 
     section 1304(e), the Director shall charge the applicable 
     risk premium rate for flood insurance based on consideration 
     of the risk involved and accepted actuarial principles under 
     section 1307(a)(1), except that the Director may not increase 
     the premium rate above the level authorized in paragraph (7); 
     and''.
       (c) Annual 10-Percent Premium Rate Increase Cap.--Section 
     1306(b) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4013(b)) is amended by adding at the end the 
     following:
       ``(7) the Director may not increase the premium rate 
     applied to a structure in any 12-month period by more than 10 
     percent over the rate previously applied to that structure 
     during the preceding 12-month period.''.
       (d) Conforming Amendments.--Section 1306(b)(5) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)(5)) 
     is amended--
       (1) by striking ``(A), (B), or (C)'' and inserting ``(A) or 
     (B)''; and
       (2) by striking ``(1)(C),''.

     SEC. 462. ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE 
                   AND CONTROL MEASURES.-

       (a) In General.--Section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b) The national flood insurance program established 
     pursuant to subsection (a) shall enable interested persons to 
     purchase insurance to cover the cost of compliance with land 
     use and control measures for--
       ``(1) properties that are repetitive loss structures;
       ``(2) properties that have flood damage in which the cost 
     of repairs equals or exceeds 50 percent of the value of the 
     structure at the time of the flood event; and
       ``(3) properties that have sustained flood damage on 
     multiple occasions, if the Director determines that it is 
     cost-effective and in the best interests of the National 
     Flood Insurance Fund to require compliance with the land use 
     and control measures.

     The Director shall impose a surcharge on each insured of not 
     more than $75 per policy to provide cost of compliance 
     coverage in accordance with the provisions of this 
     subsection.''.
       (b) Applicability.--The provisions of subsection (a) shall 
     apply only to structures that sustain flood-related damage 
     after the date of enactment of this title.

     SEC. 463. FLOOD INSURANCE PROGRAM ARRANGEMENTS WITH PRIVATE 
                   INSURANCE ENTITIES.

       Section 1345(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4081(b)) is amended by striking the period at the 
     end and inserting the following: ``and without regard to the 
     provisions of the Federal Advisory Committee Act.''.

     SEC. 464. UPDATING OF FLOOD INSURANCE RATE MAPS AND 
                   IDENTIFICATION OF EROSION HAZARD AREAS.

       (a) 5-Year Updates.--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 subsections:
       ``(e) Assessment of Need To Update Areas.--
       ``(1) Periodic assessments.--Not less than once during each 
     5-year period (the first such period beginning on the date of 
     enactment of the National Flood Insurance Reform Act of 
     1994), or more often as the Director determines necessary, 
     the Director shall assess the need to revise and update each 
     flood insurance rate map.
       ``(2) Upon request.--Upon the request of a State or 
     community stating that a flood insurance rate map needs 
     revision or updating, the Director shall review and update 
     the flood insurance rate map for the State or community. The 
     Director may require the State or community to pay a portion 
     of the cost of updating the map.
       ``(f) Availability.--To promote compliance with the 
     requirements of this title, the Director shall make flood 
     insurance rate maps and related information available free of 
     charge to Federal agencies and to State agencies directly 
     responsible for coordinating the National Flood Insurance 
     Program and to appropriate representatives of communities 
     participating in the National Flood Insurance Program, and at 
     a reasonable cost to all other persons pursuant to section 
     1310.
       ``(g) Notification.--The Director shall publish in the 
     Federal Register or by other comparable method, notice of 
     each revision to or update of a flood insurance rate map, 
     issued in the form of a Letter of Map Amendment or Letter of 
     Map Revision. Each map revision or update shall become 
     effective upon publication. Such comparable methods shall 
     include all pertinent information, provide for regular and 
     frequent distribution, and be at least as accessible to map 
     users as the Federal Register. Notices published in the 
     Federal Register, or otherwise, shall also include 
     information on how to obtain copies of the revisions or 
     updates.
       ``(h) Availability.--On March 1 and October 1 of each year, 
     the Director shall publish separately and make available in 
     their entirety within a compendium, all revisions to and 
     updates of flood insurance rate maps and all Letters of Map 
     Amendment and Letters of Map Revision that were published in 
     the Federal Register or distributed through other comparable 
     methods during the preceding 6 months, free of charge, to 
     Federal agencies, States, and communities participating in 
     the National Flood Insurance Program pursuant to section 1310 
     and at cost to all other persons.''.
       (b) Assessment, Identification, and Mapping of Erosion 
     Hazard Areas.--Section 1360 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4101), as amended by subsection (a), 
     is amended by adding at the end the following new subsection:
       ``(i) Assessment, Identification, and Mapping of Erosion 
     Hazard Areas.--
       ``(1) In general.--Not later than 60 months after the date 
     of enactment of the National Flood Insurance Reform Act of 
     1994, the Director shall, using erosion rate information and 
     other historical data, or more reliable methods if available, 
     assess, identify, and map all erosion hazard areas. In highly 
     dynamic areas, such as areas adjacent to inlets, the Director 
     may use other data or techniques in order to assess shoreline 
     recession more precisely.
       ``(2) Mapping priorities.--Not later than 2 years after the 
     date of enactment of the National Flood Insurance Reform Act 
     of 1994, the Director shall determine areas that are at 
     greatest risk from erosion and assess, identify, and map the 
     erosion hazard areas in these areas.
       ``(3) Consideration of erosion control measures.--In 
     identifying and mapping erosion hazard areas, the Director 
     shall take into account the presence of erosion control 
     measures if--
       ``(A) such measures are well-designed, well-maintained, and 
     structurally sound, and do not adversely affect adjacent 
     areas; and
       ``(B) the community provides adequate evidence of a 
     commitment to long-term maintenance and financing of the 
     measure.
       ``(4) Transition.--Until the Director has assessed, 
     identified, and mapped erosion rate data for a community, the 
     community may obtain, review, and reasonably use erosion rate 
     information or other historical data available from other 
     Federal, State, or other sources in order to develop a 
     mitigation plan.
       ``(5) State erosion rate data and baseline reference 
     features and state and community loss reduction programs.--
     The Director shall, to the maximum extent practicable, use 
     State or community erosion rate data and baseline reference 
     features in designating erosion hazard areas under this 
     title.
       ``(6) Erosion hazards.--On each flood insurance rate map 
     established under this section, the Director shall publish 
     erosion rates for areas that are subject to erosion hazards. 
     These erosion rates shall be used to identify areas that are 
     subject to erosion hazards within a 60-year period (hereafter 
     referred to as the `60-year erosion hazard area'), and for 
     areas that are subject to erosion hazards within a 30-year 
     period (hereafter referred to as the `30-year erosion hazard 
     area') as measured from a baseline reference feature. On each 
     flood insurance rate map, the Director shall identify and 
     provide legible demarcation of the baseline reference 
     feature. The Director may also provide for legible 
     demarcation of erosion hazard areas where map scale or other 
     limitations allow for such demarcation.
       ``(7) Revision of erosion hazard areas.--In revising the 
     demarcation of the baseline reference feature and erosion 
     rate data, the legible demarcation of erosion hazard areas, 
     or geographical boundaries of erosion hazard areas, the 
     Director shall give special consideration to--
       ``(A) areas (or subdivisions thereof) that are experiencing 
     or have recently experienced erosion rates in excess of the 
     erosion rate established under this section, due to storms, 
     high lake levels, or other extraordinary events creating a 
     dynamic change in the local erosion rate; and
       ``(B) areas in which community erosion control measures 
     have been implemented or erosion rates established under this 
     section have been significantly altered otherwise by manmade 
     or induced activity.
       ``(8) Review.--The Director shall consult with State and 
     community governments in the determination of erosion hazard 
     areas, and shall provide for a public review and appeals 
     process comparable to the established review and appeals 
     process for flood elevation determinations required under 
     this title.''.

     SEC. 465. RIVERINE EROSION STUDY.

       (a) Study.--The Director shall conduct a study to determine 
     the most effective techniques for identifying and 
     establishing riverine erosion rates and baseline reference 
     features, and the best methods of community management of 
     such hazards consistent with section 1361 of the National 
     Flood Insurance Act of 1968. In conducting the study, the 
     Director shall--
       (1) investigate and assess existing and state-of-the-art 
     technical methodologies for assessing riverine erosion;
       (2) examine and evaluate natural riverine processes, 
     environmental conditions, human-induced changes to the banks 
     of rivers and streams, examples of erosion and likely causes, 
     and examples of erosion control; and
       (3) analyze riverine erosion management strategies, the 
     technical standards, methods, and data necessary to support 
     such strategies, and methods of administering such strategies 
     through the National Flood Insurance Program.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this title, the Director shall submit to the 
     Congress a report regarding the findings and conclusions of 
     the study under this section. The report shall include any 
     recommendations of the Director regarding appropriate methods 
     and approaches for identifying and determining riverine 
     erosion hazard areas and management strategies relating to 
     riverine erosion. Riverine erosion shall not be mapped prior 
     to the date on which the report is submitted to the Congress 
     in accordance with this section.

     SEC. 466. TECHNICAL MAPPING ADVISORY COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (hereafter in 
     this section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of the Director, 
     or the Director's designee, and 12 additional members to be 
     appointed by the Director or his designee, and shall 
     include--
       (A) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or his or her designee);
       (B) a member of recognized surveying and mapping 
     professional associations and organizations;
       (C) a member of recognized professional engineering 
     associations and organizations;
       (D) a member of recognized professional associations or 
     organizations representing flood hazard determination firms;
       (E) a representative of the United States Geologic Survey;
       (F) a representative of State geologic survey programs;
       (G) a representative of State national flood insurance 
     coordination offices;
       (H) a representative of the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation; 
     and
       (I) a representative of a regulated lending institution.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps.
       (c) Duties.--The Council shall--
       (1) make recommendations to the Director on how to improve 
     in a cost-effective manner the accuracy, general quality, 
     ease of use, and distribution and dissemination of flood 
     insurance rate maps;
       (2) recommend to the Director mapping standards and 
     guidelines for flood insurance rate maps; and
       (3) transmit an annual report to the Director describing--
       (A) the activities of the Council;
       (B) an evaluation of the status and performance of flood 
     insurance rate maps and mapping activities to revise and 
     update flood insurance rate maps as established by the 
     amendments made under section 464; and
       (C) a summary of recommendations made by the Council to the 
     Director.
       (d) Chairperson.--The Director shall appoint 1 member to 
     serve as the chairperson of the Council (hereafter in this 
     section referred to as the ``Chairperson'').
       (e) Coordination.--To ensure that the Council's 
     recommendations are consistent to the maximum extent 
     practicable with national digital spatial data collection and 
     management standards, the Chairperson shall consult with the 
     Chairperson of the Federal Geographic Data Committee 
     (established pursuant to OMB Circular A-16).
       (f) Compensation.--Members of the Council shall receive no 
     additional compensation by reason of their service on the 
     Council.
       (g) Meetings and Actions.--
       (1) In general.--The Council shall meet not less than twice 
     each year at the request of the Chairperson or a majority of 
     its members and may take action by a vote of the majority of 
     the members.
       (2) Initial meeting.--The Director, or a person designated 
     by the Director, shall request and coordinate the initial 
     meeting of the Council.
       (h) Officers.--The Chairperson may appoint officers to 
     assist in carrying out the duties of the Council under 
     subsection (c).
       (i) Staff of the Federal Emergency Management Agency.--Upon 
     the request of the Chairperson, the Director may detail, on a 
     nonreimbursable basis, personnel of the Federal Emergency 
     Management Agency to assist the Council in carrying out its 
     duties.
       (j) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research as it considers 
     appropriate.
       (k) Termination.--The Council shall terminate 5 years after 
     the date on which all members of the Council have been 
     appointed under subsection b)(1).

     SEC. 467. FUNDING FOR INCREASED ADMINISTRATIVE AND 
                   OPERATIONAL RESPONSIBILITIES.

       (a) Availability of Fund.--Section 1310(a) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017(a)), as amended 
     by section 432, is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``(except as otherwise provided)'' after ``without fiscal 
     year limitation''; and
       (2) by adding at the end the following new paragraphs:
       ``(7) for assessment and mapping of erosion hazard areas 
     under section 1360(i), except that the fund shall be 
     available for the purpose under this paragraph in an amount 
     not to exceed an aggregate of $25,000,000 over the 5-year 
     period beginning on the date of enactment of the National 
     Flood Insurance Reform Act of 1994; and
       ``(8) for revising and updating flood insurance rate maps 
     under section 1360(i), except that the fund shall be 
     available for the purpose under this paragraph in an amount 
     not to exceed $2,000,000, in each fiscal year beginning after 
     the expiration of the 2-year period beginning on the date of 
     enactment of the National Flood Insurance Reform Act of 
     1994.''.
       (b) Credits of Fund.--Section 1310(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4017(b)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) by redesignating paragraph (6) as paragraph (7); and
       (3) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) any penalties collected under section 102(f) of the 
     Flood Disaster Protection Act of 1973; and''.

     SEC. 468. SEPARATE ACCOUNT FOR NATIONAL FLOOD INSURANCE FUND.

       Section 1310(a) of the National Flood Insurance Act (42 
     U.S.C. 4017(a)) is amended by inserting before ``which shall 
     be available'' the following: ``which shall be maintained in 
     the Treasury as an account separate from any other funds 
     available to the Director, and''.

     SEC. 469. NONWAIVER OF FLOOD PURCHASE REQUIREMENT FOR 
                   RECIPIENTS OF FEDERAL DISASTER ASSISTANCE.

       Section 311(b) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5154(b)) is amended 
     by adding at the end the following: ``The requirements of 
     this subsection may not be waived under section 301.''.

     SEC. 470. INSURANCE WAITING PERIOD.

       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:
       ``(e) Waiting Period.--Coverage under a new flood insurance 
     policy shall be effective upon the expiration of a waiting 
     period prescribed by the Director. In no case shall the 
     waiting period be fewer than 10 days following receipt of the 
     initial premium for such policy by the Director.''.

     SEC. 471. IMPLEMENTATION REVIEW BY THE DIRECTOR.

       Section 1320 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4027) is amended--
       (1) by striking ``The Director'' and inserting ``(a) In 
     General.--The Director''; and
       (2) by adding at the end the following new subsection:
       ``(b) Effects of Flood Insurance Program.--The Director 
     shall include, as part of the biennial report submitted under 
     subsection (a), a chapter reporting on the effects on the 
     flood insurance program observed through implementation of 
     requirements under the National Flood Insurance Reform Act of 
     1994.''.

     SEC. 472. REGULATIONS.

       The Director and the head of any appropriate Federal agency 
     may each issue any regulations necessary to carry out the 
     applicable provisions of this title and the applicable 
     amendments made by this title.
                                 ______


                 BROWN (AND OTHERS) AMENDMENT NO. 1538

  Mr. BROWN (for Mr. Moynihan for himself, Mr. Brown, Mr. D'Amato, Mr. 
Packwood, Mr. DeConcini, Mr. Lautenberg, Mr. Specter, Mr. Sasser, Mr. 
Dole, Mr. Burns, Mrs. Feinstein, Mr. Wofford, Mr. Reid, Mr. Mack, Mr. 
Pressler, Mr. Coats, Mrs. Boxer, Mr. Mathews, Mr. Bradley, Mr. 
Feingold, Mr. Kohl, Mr. Kerry, Mr. Roth, Mr. Levin, Mrs. Hutchison, Mr. 
Bennett, and Mr. Gorton) proposed an amendment to the bill S. 1275, 
supra; as follows:

       At the appropriate place in the bill, add the following new 
     section--

     ``SEC.   . UNITED NATIONS RESOLUTIONS CONCERNING JERUSALEM.

       (a) Findings.--The Congress finds that--
       (1) For three thousand years Jerusalem has been the focal 
     point of Jewish religious devotion;
       (2) Jerusalem is also considered a holy city by the members 
     of other religious faiths;
       (3) The once thriving Jewish majority of the historic Old 
     City of Jerusalem was driven out by force during the 1948 
     Arab-Israeli War;
       (4) From 1948 to 1967, Jerusalem was a divided city and 
     Israeli citizens of all faiths as well as Jewish citizens of 
     all states were denied access to holy sites in the area 
     controlled by Jordan;
       (5) In 1967, Jerusalem was reunited during the conflict 
     known as the Six Day War;
       (6) Since 1967, Jerusalem has been a united city 
     administered by Israel and persons of all religious faiths 
     have been guaranteed full access to holy sites within the 
     city;
       (7) In 1990, the United States Senate and House of 
     Representatives overwhelmingly adopted Senate Concurrent 
     Resolution 106 and House Concurrent Resolution 290 declaring 
     that Jerusalem, the capital of Israel, ``must remain an 
     undivided city'';
       (8) The Vice President has stated the Administration's 
     intention not to ``forget the meaning of Jerusalem'';
       (9) The Secretary of State recently reiterated U.S. 
     opposition to attempts in the United Nations to refer to 
     Jerusalem as ``occupied territory'';
       (10) It is reported that the United Nations Security 
     Council may consider a resolution condemning the Hebron 
     massacre but which also refers to Jerusalem as ``occupied'' 
     territory;
       (b) Sense of Congress.--Therefore, it is the sense of the 
     Congress--
       (1) That the Administration should be commended for its 
     efforts not to ``forget the meaning of Jerusalem'' and to 
     oppose attempts in the United Nations to refer to Jerusalem 
     as ``occupied'' territory;
       (2) That sacrificing core principles for short term 
     objectives will ultimately retard, not advance, the peace 
     process;
       (3) That the United States should exercise its veto in the 
     United Nations Security Council on any Security Council 
     resolution that states or implies that Jerusalem is 
     ``occupied'' territory.
                                 ______


             RIEGLE (AND D'AMATO) AMENDMENT NOS. 1539-1540

  Mr. RIEGLE (for himself and Mr. D'Amato) proposed two amendments to 
the bill S. 1275, supra; as follows:

                           Amendment No. 1539

       On page 99, beginning with line 22, strike all through page 
     100, line 19, and insert the following:
       (a) Prohibited Transaction Exemption.--The Secretary of 
     Labor, in consultation with the Secretary of the Treasury, 
     may exempt transactions involving small business related 
     securities (as defined in section 3(a)(53) of the Securities 
     Exchange Act of 1934, as added by section 202 of this Act) 
     pursuant to section 408(a) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1108(a)) and section 
     4975(c)(2) of the Internal Revenue Code of 1986.
       (b) Consideration of Exemption Requests.--The Secretary of 
     Labor shall consider any request for exemption under 
     subsection (a) within a reasonable period of time after 
     receipt of such request.
       Section 210 of the bill, as amended by amendment No. 1523, 
     is further amended--
       (1) in subsection (a)--
       (A) by striking ``account--'' and inserting ``account, as 
     appropriate--'';
       (B) by striking ``and'' at the end of paragraph (2);
       (C) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (B) by adding at the end the following:
       ``(4) such other tax policies as may be warranted.''; and
       (2) in subsection (b)--
       (A) by striking ``means any entity'' and inserting ``means 
     an entity'';
       (B) by striking ``any obligation (including any 
     participation or certificate of beneficial ownership 
     therein)'' and inserting ``obligations''; and
       (C) by striking ``that was originated'' and inserting 
     ``that were originated''.
                                  ____


                           Amendment No. 1540

       At the appropriate place insert:

     SEC  . AMENDMENT TO THE FEDERAL RESERVE ACT.

       Sec. 11. Section 11 of the Federal Reserve Act (12 U.S.C. 
     248) is amended by inserting at the end thereof the following 
     new subsection:
       ``(p) Authority.--The Board of Governors of the Federal 
     Reserve System and the Federal Open Market Committee may each 
     act in the Board's or the Committee's own name and through 
     the Board's or the Committee's own attorneys in enforcing any 
     provision of this title, regulations thereunder, or any other 
     law or regulation, or in any action, suit, or proceeding to 
     which the Board of Governors of the Federal Reserve System or 
     the Federal Open Market Committee is a party.''.
                                 ______


                 KERRY (AND OTHERS) AMENDMENT NO. 1541

  Mr. KERRY (for himself, Mr. Mack, Mr. Bond, and Mr. D'Amato) proposed 
an amendment to the bill S. 1275, supra; as follows:
       On page 160, after line 12, insert the following new title:

               TITLE IV--NATIONAL FLOOD INSURANCE REFORM

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``National Flood Insurance 
     Reform Act of 1994''.

     SEC. 402. CONGRESSIONAL FINDINGS.

       The Congress finds that--
       (1) the 4 principal objectives of the National Flood 
     Insurance Program are to limit increasing flood control and 
     disaster relief expenditures, to provide a prefunded 
     mechanism to more fully indemnify victims of flood-related 
     disasters, to limit unwise development in floodplains, and to 
     provide affordable Federal flood insurance for structures 
     located in areas of special flood hazards;
       (2) since 1968, the National Flood Insurance Program has 
     reduced the need for taxpayer funded disaster assistance and 
     has been a factor in motivating local government mitigation 
     efforts.
       (7) repetitively damaged properties represent a substantial 
     problem for the National Flood Insurance Program, with over 
     40 percent of all flood insurance claims made on properties 
     that have been damaged more than once;
       (9) reforms in the National Flood Insurance Program are 
     essential to increase participation in the Program, make the 
     Program more actuarially sound, decrease the risk of losses 
     to the United States Treasury, and address the problem of 
     properties repetitively damaged by floods;
       (10) a Federal flood insurance program that combines 
     predisaster mitigation efforts together with an insurance and 
     compliance program will reduce the physical and economic 
     effects of flood-related damage on the Federal Government, 
     State and local governments, and individuals;
       (11) requiring regulated lending institutions, government 
     agencies, and government-sponsored enterprises to make sure 
     that flood insurance coverage is purchased on all properties 
     in areas of special flood hazards in participating 
     communities will increase compliance with the program, and 
     increase the pool of funds, thereby decreasing the impact on 
     the National Flood Insurance Fund of individual flood events;
       (14) incentives in the form of reduced premium rates for 
     flood insurance under the National Flood Insurance Program 
     should be provided in communities that have adopted and 
     enforced exemplary or particularly effective measures for 
     comprehensive floodplain management; and
       (15) these community-based, individual mitigation, and loss 
     prevention methods and incentives should be incorporated into 
     the National Flood Insurance Program.

     SEC. 403. DECLARATION OF PURPOSE UNDER THE NATIONAL FLOOD 
                   INSURANCE ACT OF 1968.

       Section 1302(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4001(e)) is amended--
       (1) by redesignating paragraphs (3), (4), and (5), as 
     paragraphs (4), (5), and (6), respectively; and
       (2) by inserting after paragraph (2) the following: ``(3) 
     encourage State and local governments and Federal agencies to 
     protect natural and beneficial floodplain functions that 
     reduce flood-related losses,''.

     SEC. 404. DEFINITION.

       As used in this title, the term ``Director'' means the 
     Director of the Federal Emergency Management Agency.

                        Subtitle A--Definitions

     SEC. 411. FLOOD DISASTER PROTECTION ACT OF 1973.

       (a) In General.--Section 3(a) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4003(a)) is amended--
       (1) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) `Federal entity for lending regulation' means the 
     Board of Governors of the Federal Reserve System, the Federal 
     Deposit Insurance Corporation, the Comptroller of the 
     Currency, the Office of Thrift Supervision, the National 
     Credit Union Administration Board, and the Farm Credit 
     Administration, and with respect to a particular regulated 
     lending institution means the entity primarily responsible 
     for the supervision of the institution;'';
       (2) in paragraph (6), by striking the period at the end and 
     inserting a semicolon; and
       (3) by inserting after paragraph (6) the following new 
     paragraphs:
       ``(7) `regulated lending institution' means a bank, savings 
     association, credit union, farm credit bank, Federal land 
     bank association, production credit association, or similar 
     institution subject to the supervision of a Federal entity 
     for lending regulation;
       ``(8) `Federal agency lender' means the Federal Housing 
     Administration, the Farmers Home Administration, the Small 
     Business Administration, and the Veterans' Administration, 
     when such agency makes loans secured by improved real estate 
     or a manufactured home; and
       ``(9) `servicer' means a person who receives any scheduled 
     periodic payments from a borrower pursuant to the terms of 
     any loan secured by a lien on real property, and who makes 
     the payments of principal and interest and such other 
     payments with respect to the amounts received from the 
     borrower as may be required.''.
       (b) Conforming Amendments.--
       (1) Requirements to purchase flood insurance.--Section 
     102(b) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(b)) is amended by striking ``(b) Each Federal 
     instrumentality responsible for the supervision, approval, 
     regulation, or insuring of banks, savings and loan 
     associations, or similar institutions shall by regulation 
     direct such institutions'' and inserting the following:
       ``(b) Flood Insurance Purchase Requirements.--Each Federal 
     entity for lending regulation shall by regulation direct 
     regulated lending institutions''.
       (2) Effect of nonparticipation in flood insurance 
     program.--Section 202(b) of the Flood Disaster Protection Act 
     of 1973 (42 U.S.C. 4106(b)) is amended by striking ``Federal 
     instrumentality described in such section shall by regulation 
     require the institutions'' and inserting ``Federal entity for 
     lending regulation (with respect to regulated lending 
     institutions)''.

     SEC. 412. NATIONAL FLOOD INSURANCE ACT OF 1968.

       (a) In General.--Section 1370(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121(a)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(7) the term `Federal entity for lending regulation' 
     means the Board of Governors of the Federal Reserve System, 
     the Federal Deposit Insurance Corporation, the Comptroller of 
     the Currency, the Office of Thrift Supervision, and the 
     National Credit Union Administration Board, and with respect 
     to a particular regulated lending institution, means the 
     entity primarily responsible for the supervision of the 
     institution;
       ``(8) the term `regulated lending institution' means a 
     bank, savings association, credit union, farm credit bank, 
     Federal land bank association, production credit association, 
     or similar institution subject to the supervision of a 
     Federal entity for lending regulation;
       ``(9) the term `Federal agency lender' means the Federal 
     Housing Administration, the Farmers Home Administration, the 
     Small Business Administration, and the Veterans' 
     Administration, when such agency makes loans secured by 
     improved real estate or a manufactured home;
       ``(10) the term `natural and beneficial floodplain 
     functions' means--
       ``(A) the functions associated with the natural or 
     relatively undisturbed floodplain that moderate flooding, 
     retain flood waters, reduce erosion and sedimentation, 
     mitigate the effects of waves and storm surge from storms; 
     and
       ``(B) ancillary beneficial functions, including maintenance 
     of water quality and recharge of ground water that reduce 
     flood related damage.
       ``(11) the term `erosion control measures' means a 
     community's efforts to control erosion through nonstructural 
     and structural projects;
       ``(12) the term `repetitive loss structure' means an 
     insured property that has incurred flood-related damage on 2 
     occasions during a 10-year period ending on the date of the 
     event for which a second claim is made, in which the cost of 
     repair, on the average, equaled or exceeded 25 percent of the 
     value of the structure at the time of each flood event;
       ``(13) the term `cost of compliance with land use and 
     control measures' means
       (A)the cost of elevating or flood proofing a structure so 
     that the structure is in compliance with the minimum 
     performance standards adopted by the State or community 
     pursuant to section 1315 of the National Flood Insurance Act 
     of 1968, or
       (B) the cost of relocation or demolition of the structure 
     if the Director demonstrates that the structure will collapse 
     or subside as a result of erosion within 30 years based on 
     state erosion data.
       ``(14) the term `servicer' means any person who receives 
     any scheduled periodic payments from a borrower pursuant to 
     the terms of any loan secured by a lien on real property, and 
     who makes the payments of principal and interest and such 
     other payments with respect to the amounts received from the 
     borrower as may be required.''.
       (b) Conforming Amendment.--Section 1322(d) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4029(d)) is amended by 
     striking ``federally supervised, approved, regulated or 
     insured financial institution'' and inserting ``regulated 
     lending institution''.

           Subtitle B--Compliance and Increased Participation

     SEC. 421. EXPANDED FLOOD INSURANCE PURCHASE REQUIREMENTS.

       (a) In General.--Section 102(b) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(b)), as amended by 
     section 411(b)(1), is amended--
       (1) by striking ``Each Federal entity'' and inserting the 
     following:
       ``(1) In general.--Each Federal entity'';
       (2) by inserting before ``shall by regulation'' the 
     following: ``(after consultation and coordination with the 
     Federal Financial Institutions Examination Council 
     established under the Federal Financial Institutions 
     Examination Council Act of 1974)''; and
       (3) by adding at the end the following new paragraphs:
       ``(2) Procedures implemented by fnma, fhlmc, and famc.--The 
     Federal National Mortgage Association, the Federal Home Loan 
     Mortgage Corporation, and the Federal Agricultural Mortgage 
     Corporation shall implement procedures reasonably designed to 
     assure that each loan that is--
       ``(A) secured by improved real estate or a manufactured 
     home located in an area that has been identified at the time 
     of the origination of the loan by the Director as an area of 
     special flood hazards and in which flood insurance is 
     available under the National Flood Insurance Act of 1968; and
       ``(B) purchased by any such entity;
     is covered for the term of the loan by flood insurance in the 
     amount provided in paragraph (1).
       ``(3) Procedures implemented by federal agency lenders.--
     Each Federal agency lender shall implement procedures 
     reasonably designed to assure that all property--
       ``(A) that secures loans that the Federal agency lender 
     makes, increases, extends, or renews; and
       ``(B) that is improved by real estate or a manufactured 
     home located in an area that has been identified at the time 
     of the origination of the loan by the Director as an area of 
     special flood hazards and in which flood insurance is 
     available under the National Flood Insurance Act of 1968;
     is covered for the term of the loan by flood insurance in the 
     amount provided in paragraph (1).
       ``(4) Definition.--For purposes of this section property 
     improved by real estate means insurable improvements on that 
     property.''.
       (b) Effective Date.--The provisions of this section shall 
     apply to all transactions occurring after the expiration of 
     the 1-year period beginning on the date of enactment of this 
     title.

     SEC. 422. ESCROW OF FLOOD INSURANCE PAYMENTS.

       (a) In General.--Section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding 
     at the end the following new subsection:
       ``(d) Escrow of Flood Insurance Payments.--
       ``(1) By regulated lending institutions.--Each Federal 
     entity for lending regulation, after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council, shall by regulation require that, if a 
     regulated lending institution requires the escrowing of 
     taxes, insurance premiums, fees, or any other charges for a 
     loan secured by residential real estate or manufactured 
     homes, all charges for flood insurance under this title for 
     the property shall be paid by the borrower to the institution 
     for the duration of the period during which the regulated 
     lending institution maintains an escrow account. Upon receipt 
     of a notice from the Director or the provider of the 
     insurance that insurance premiums, fees, or other charges are 
     due, the institution shall pay from the escrow account to 
     the provider of the insurance the amount of insurance 
     premiums, fees, or other charges owed.
       ``(2) By federal agency lenders.--If a Federal agency 
     lender requires the escrowing of taxes, insurance premiums, 
     fees, or any other charges, then any charges for flood 
     insurance under this title for the residential real estate or 
     the manufactured home shall be paid by the borrower to the 
     Federal agency lender for the duration of the period during 
     which the Federal agency lender maintains an escrow account. 
     Upon receipt of a notice from the Director or the provider of 
     the insurance that insurance premiums, fees, or other charges 
     are due, the Federal agency lender shall pay from the escrow 
     account to the provider of the insurance the amount of 
     insurance premiums, fees or other charges owed.
       ``(3) Applicability of real estate settlement procedures 
     act.--Escrow accounts used to collect flood insurance 
     premiums, fees, or other charges under this subsection shall 
     be subject to the provisions of section 10 of the Real Estate 
     Settlement Procedures Act of 1974.''.
       (b) Applicability.--Section 102(d) of the Flood Disaster 
     Protection Act of 1973, as added by subsection (a), shall 
     apply 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 this title.

     SEC. 423. NOTICE REQUIREMENTS.

       Section 1364 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104a) is amended to read as follows:

     ``SEC. 1364. NOTICE REQUIREMENTS.

       ``(a) Lending Institutions.--Each Federal entity for 
     lending regulation, after consultation and coordination with 
     the Federal Financial Institutions Examination Council, shall 
     by regulation require that before a regulated lending 
     institution makes, increases, extends, or renews a loan 
     secured by improved real estate or a manufactured home 
     located in an area that has been identified by the Director 
     as an area of special flood hazards, the institution shall 
     notify the borrower of the special flood hazards and of the 
     need to purchase and maintain flood insurance.
       ``(b) Federal Agency Lenders.--Before a Federal agency 
     lender makes, increases, extends, or renews a loan secured by 
     improved real estate or a manufactured home located in an 
     area that has been identified by the Director as an area of 
     special flood hazards, the Federal agency lender shall notify 
     the borrower of the special flood hazards and of the need to 
     purchase and maintain flood insurance.
       ``(c) Participating Communities.--The Director shall by 
     regulation require each participating community, upon 
     receiving the semiannual list prepared by the Director of all 
     revisions to and updates of flood insurance rate maps made 
     during the preceding 6 months, to determine whether any 
     properties in their community have been affected, and to 
     provide annual notice by mail, notice by publication, notice 
     on tax assessments, or notice by other reasonable method, to 
     regulated lending institutions that are known to lend in the 
     community, and to the owners of all properties newly 
     determined to be, or no longer to be, in an area of special 
     flood hazards, of the flood insurance purchase requirements 
     under section 102(b).
       ``(d) Contents of Notice.--Notification required by this 
     section shall include a warning, in a form to be established 
     by the Director, stating that the real estate or manufactured 
     home securing the loan is located in an area of special flood 
     hazards, a description of the flood insurance purchase 
     requirements under section 102(b), a statement that flood 
     insurance coverage may be purchased under the National Flood 
     Insurance Program and may also be available from private 
     insurers, and any other information that the Director 
     considers necessary to carry out the purposes of the National 
     Flood Insurance Program.''.

     SEC. 424. PLACEMENT OF FLOOD INSURANCE BY REGULATED LENDING 
                   INSTITUTION, FEDERAL AGENCY LENDER, OR 
                   SERVICER.

       (a) Required Actions by Lender.--Section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a), as amended 
     by section 422(a), is amended by adding at the end the 
     following new subsection:
       ``(e) Required Actions by Lender.--
       ``(1) Notification to borrower of lack of coverage.--If, at 
     the time of origination or at any other time during the term 
     of a loan secured by improved real estate or by a 
     manufactured home located in an area that has been identified 
     by the Director as an area of special flood hazards and in 
     which flood insurance is available under this title, a 
     regulated lending institution, Federal agency lender, or 
     servicer determines that the building or manufactured home 
     and any personal property securing the loan held or serviced 
     by the regulated lending institution, Federal agency lender, 
     or servicer is not covered by flood insurance, in an amount 
     not less than the amount required by subsection (b)(1), the 
     regulated lending institution, Federal agency lender, or 
     servicer shall notify the borrower, in a form to be 
     established by the Director, that the borrower should obtain, 
     at the borrower's expense, an amount of flood insurance that 
     is not less than the amount required by subsection (b)(1), 
     for the term of the loan. If, not later than 45 days after 
     receiving such notification, the borrower fails to purchase 
     such flood insurance, the regulated lending institution, 
     Federal agency lender, or servicer shall purchase the 
     insurance on behalf of the borrower and may charge the 
     borrower for the cost of premiums and fees incurred by the 
     regulated lending institution, Federal agency lender, or 
     servicer in purchasing the insurance.
       ``(2) Review.--
       ``(A) By the director.--A borrower may request, based upon 
     the submission of supporting technical data, that the 
     Director review a determination that the improved real estate 
     or manufactured home securing the loan is located in an area 
     of special flood hazards. Not later than 45 days after the 
     Director receives the request, the Director shall review the 
     determination and provide the borrower with a letter stating 
     whether or not the property is in an area of special flood 
     hazards. The determination of the Director shall be final. If 
     the Director fails to respond to a request within 45 days, 
     the property shall be deemed not to be located in an area 
     having special flood hazards.
       ``(B) Insurance not required.--If a person is provided by 
     the borrower with a letter issued by the Director pursuant to 
     subparagraph (A) during the preceding 1-year period, stating 
     that the property is not in an area of special flood hazards, 
     such person shall have no obligation under this title to 
     require the purchase of flood insurance on the property.''.
       (b) Applicability.--
       (1) In general.--Except as provided in paragraph (2), 
     section 102(e) of the Flood Disaster Protection Act of 1973, 
     as added by subsection (a), shall apply to all loans 
     outstanding on or after the date of enactment of this title.
       (2) Loans regulated by the farm credit administration.--
     With respect to loans held by institutions regulated by the 
     Farm Credit Administration, section 102(e) of the Flood 
     Disaster Protection Act of 1973, as added by subsection (a), 
     shall apply only to loans originating on or after the date of 
     enactment of this title.

     SEC. 425. STANDARD FLOOD HAZARD DETERMINATION FORMS.

       (a) In General.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 1365. STANDARD FLOOD HAZARD DETERMINATION FORMS.

       ``(a) Development.--The Director, in consultation with the 
     Federal entities for lending regulation, and after notice and 
     comment, shall develop a standard flood hazard determination 
     form (hereafter in this section referred to as the 
     `determination form') for use in connection with loans 
     secured by improved real estate or a manufactured home 
     located in an area of special flood hazards and in which 
     flood insurance is available under this title. The 
     determination form may be maintained in a printed, 
     computerized, or electronic manner.
       ``(b) Design and Contents.--The determination form shall 
     state whether the property is in an area of special flood 
     hazards, the risk premium rate classification established for 
     the special flood hazard area in which the property is 
     located, the complete map and panel numbers for the property, 
     and the date of the map used for the determination. If the 
     complete map and panel numbers for the property are not 
     available because the property is not located in a community 
     that is participating in the National Flood Insurance Program 
     or because no map exists for the relevant area, the 
     determination form shall so state.
       ``(c) Required Use.--Each Federal entity for lending 
     regulation shall by regulation require the use of the 
     determination form by regulated lending institutions. Each 
     Federal agency lender shall by regulation provide for the use 
     of the determination form. The Federal National Mortgage 
     Association, the Federal Home Loan Mortgage Corporation, and 
     the Federal Agricultural Mortgage Corporation shall require 
     use of the determination form by any person from whom they 
     purchase loans.
       ``(d) Guarantees Regarding Information.--In recording 
     information on a determination form, a person may rely on 
     information provided by a third party to the extent that the 
     third party guarantees the accuracy of the information.
       ``(e) Reliance on Previous Determination.--A person or 
     institution increasing, extending, renewing, or purchasing a 
     loan may rely on a previous determination as to whether 
     property is in a special flood hazard area, if the previous 
     determination was made not more than 5 years before the date 
     of the transaction, and the basis for the previous 
     determination has been set forth on a determination form.''.
       (b) Applicability.--Section 1365 of the National Flood 
     Insurance Act of 1968, as added by subsection (a), shall 
     apply to all loans originated on or after the expiration of 
     the 6-month period beginning on the date the standard flood 
     hazard determination form is finalized by the Director.

     SEC. 426. EXAMINATIONS REGARDING COMPLIANCE BY REGULATED 
                   LENDING INSTITUTIONS.

       (a) Amendment to Federal Deposit Insurance Act.--Section 10 
     of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
     amended by adding at the end the following new subsection:
       ``(h) Flood Hazard Insurance Compliance by Insured 
     Depository Institutions Required.--
       ``(1) Examinations.--The appropriate Federal banking agency 
     shall, during each scheduled on-site examination required by 
     this section, determine whether the insured depository 
     institution is complying with the requirements of the 
     National Flood Insurance Program.
       ``(2) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994, 
     and biannually thereafter for the next 4 years, each 
     appropriate Federal banking agency shall submit a report to 
     Congress on compliance by insured depository institutions 
     with the requirements of the National Flood Insurance 
     Program. The report shall include a description of the 
     methods used to determine compliance, the number of 
     institutions examined during the reporting year, a listing 
     and total number of institutions found to be in 
     noncompliance, actions taken to correct incidents of 
     noncompliance, and an analysis of compliance, including a 
     discussion of any trends, patterns, and problems, and 
     recommendations regarding reasonable actions to improve the 
     efficiency of the examinations processes.''.
       (b) Amendment to the Federal Credit Union Act.--Section 204 
     of the Federal Credit Union Act (12 U.S.C. 1784) is amended 
     by adding at the end the following new subsection:
       ``(e) Flood Hazard Insurance Compliance by Insured Credit 
     Unions Required.--
       ``(1) Examination.--The Board shall, during each 
     examination conducted under this section, determine whether 
     the insured credit union is complying with the requirements 
     of the National Flood Insurance Program.
       ``(2) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994, 
     and biannually thereafter for the next 4 years, the Board 
     shall submit a report to Congress on compliance by insured 
     credit unions with the requirements of the National Flood 
     Insurance Program. The report shall include a description of 
     the methods used to determine compliance, the number of 
     insured credit unions examined during the reporting year, 
     a listing and total number of insured credit unions found 
     to be in noncompliance, actions taken to correct incidents 
     of noncompliance, and an analysis of compliance, including 
     a discussion of any trends, patterns, and problems, and 
     recommendations regarding reasonable actions to improve 
     the efficiency of the examinations processes.''.

     SEC. 427. PENALTIES AND CORRECTIVE ACTIONS FOR FAILURE TO 
                   REQUIRE FLOOD INSURANCE, ESCROW, OR NOTIFY.

       Section 102 of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4012a), as amended by sections 422 and 424, is 
     amended by adding at the end the following new subsections:
       ``(f) Civil Penalties.--
       ``(1) In general.--A regulated lending institution that is 
     found to have a pattern or practice of violating this section 
     may be assessed a civil penalty by the appropriate Federal 
     entity for lending regulation of not more than $350 for each 
     such violation. A penalty under this subsection may be issued 
     only after notice and an opportunity for a hearing on the 
     record.
       ``(2) Total amount.--The total amount of penalties assessed 
     under this subsection against a single regulated lending 
     institution for any calendar year may not exceed $100,000.
       ``(3) Sales or transfers.--The subsequent sale or other 
     transfer of a loan by a regulated lending institution that 
     has committed a violation of this section shall not affect 
     the liability of the transferring institution with respect to 
     any penalty under this subsection. An institution shall not 
     be liable for a violation relating to a loan committed by 
     another institution that previously held the loan.
       ``(4) 3-year limit.--No penalty may be imposed under this 
     subsection after the expiration of the 3-year period 
     beginning on the date of the occurrence of the violation.
       ``(g) Additional Actions.--If a Federal entity for lending 
     regulation determines--
       ``(1) that a regulated lending institution has demonstrated 
     a pattern and practice of noncompliance in violation of the 
     regulations issued pursuant to subsection (b) or subsection 
     (d) or the notice requirements under section 1364 of the 
     National Flood Insurance Act of 1968; and
       ``(2) that the regulated lending institution has not 
     demonstrated measurable improvement in compliance despite the 
     issuance of penalties under subsection (f);

     the agency may require the regulated lending institution to 
     take such remedial actions as are necessary to ensure that 
     the regulated lending institution is in satisfactory 
     compliance with the requirements of the National Flood 
     Insurance Program.''.

     SEC. 428. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

       Section 1006 of the Federal Financial Institutions 
     Examination Council Act of 1978 (12 U.S.C. 3305) is amended 
     by adding at the end the following new subsection:
       ``(g) Flood Insurance.--The Council shall consult with and 
     assist the Federal entities for lending regulation, as such 
     term is defined in section 1370(a)(7) of the National Flood 
     Insurance Act of 1968, in developing and coordinating uniform 
     standards and requirements for use by regulated lending 
     institutions under the National Flood Insurance Program.''.

     SEC. 429. CONFORMING AMENDMENT.

       The section heading for section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a) is amended to read 
     as follows:


   ``flood insurance purchase and compliance requirements and escrow 
                              accounts''.

Subtitle C--Ratings and Incentives for Community Floodplain Management 
                                Programs

     SEC. 431. COMMUNITY RATING SYSTEM AND INCENTIVES FOR 
                   COMMUNITY FLOODPLAIN MANAGEMENT.

       (a) Requirement for Participation in Flood Insurance 
     Program.--Section 1315 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4022) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 1315. STATE AND LOCAL LAND USE CONTROLS.'';

       (2) by striking ``After December'' and inserting the 
     following:
       ``(a) Requirement for Participation in Flood Insurance 
     Program.--After December''; and
       (3) by adding at the end the following new subsection:
       ``(b) Community Rating System and Incentives for Community 
     Floodplain Management.--
       ``(1) Authority and goals.--The Director shall carry out a 
     community rating system program to evaluate the measures 
     adopted by communities voluntarily participating in the 
     community rating system, to provide incentives for measures 
     to reduce the risk of flood or erosion damage that exceed the 
     criteria set forth in section 1361, to encourage adoption of 
     more effective measures to protect natural and beneficial 
     floodplain functions, floodplain and erosion management, and 
     to promote the reduction of Federal flood insurance losses.
       ``(2) Incentives.--The program shall provide incentives in 
     the form of credits on premium rates for flood insurance 
     coverage in communities that the Director determines have 
     adopted and enforced measures to reduce the risk of flood and 
     erosion damage that exceed the criteria set forth in section 
     1361. In providing incentives under this paragraph, the 
     Director may provide for credits to flood insurance premium 
     rates in communities that the Director determines have--
       ``(A) implemented measures to protect natural and 
     beneficial floodplain functions; and
       ``(B) adopted erosion control measures.
       ``(3) Credits.--The credits on premium rates for flood 
     insurance coverage shall be based on the estimated reduction 
     in flood and erosion damage risks resulting from the measures 
     adopted by the community under this program. If a community 
     has received mitigation assistance under Sec. 1366, the 
     credits shall be phased-in as determined by the Director.''.
       (b) Reports.--Two years after the date of enactment of this 
     title and biannually thereafter, the Director shall submit a 
     report to the Congress regarding the program under section 
     1315(a) of the National Flood Insurance Act of 1968. Each 
     report shall include an analysis of the cost-effectiveness 
     and other accomplishments and shortcomings of the program and 
     any recommendations of the Director for legislation regarding 
     the program.

     SEC. 432. FUNDING.

       Section 1310(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4017(a)) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding after paragraph (5) the following new 
     paragraph:
       ``(6) for carrying out the program under section 
     1315(b);''.

     SEC. 433. REASONABLE FEES.

       A lender may charge a borrower a reasonable fee for making 
     a flood insurance determination.
           Subtitle D--Mitigation of Flood and Erosion Risks

     SEC. 441. MITIGATION ASSISTANCE IN FEDERAL INSURANCE 
                   ADMINISTRATION.

       Section 1105(a) of the Housing and Urban Development Act of 
     1968 (42 U.S.C. 4129) is amended--
       (1) by striking ``(a) There is hereby'' and inserting the 
     following:
       ``(a) Establishment.--There is hereby''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Coordination of Mitigation Activities.--The Director 
     shall coordinate all mitigation activities, including the 
     administration of the program for mitigation assistance under 
     section 1367. These activities shall include the development 
     and implementation of various mitigation activities and 
     techniques, the provision of advice and assistance regarding 
     mitigation to States, communities, and individuals, including 
     planning assistance under section 1367(d), coordination with 
     other Federal flood and erosion mitigation efforts, and 
     coordination with State and local governments and public and 
     private agencies and organizations for collection and 
     dissemination of information regarding erosion.''.

     SEC. 442. AUTHORIZATION OF NATIONAL FLOOD AND EROSION 
                   MITIGATION FUNDS UNDER SECTION 1362.

       Chapter III of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4101 et seq.), as amended by section 425, is amended 
     by adding at the end the following new section:

     ``SEC. 1366. NATIONAL FLOOD AND EROSION MITIGATION PROGRAM.

       ``(a) Expenditures.--For flood and erosion mitigation 
     activities authorized under section 1367, the Director may 
     expend from the National Flood Insurance Fund--
       ``(1) up to $10,000,000 in the fiscal year ending September 
     30, 1994;
       ``(2) up to $15,000,000 in the fiscal year ending September 
     30, 1995;
       ``(3) up to $20,000,000 in the fiscal year ending September 
     30, 1996;
       ``(4) up to $20,000,000 in each fiscal year thereafter; and
       ``(5) any amounts recaptured under section 1367(i).
       ``(b) Report.--Not later than 1 year after the date of 
     enactment of the National Flood Insurance Reform Act of 1994 
     and biannually thereafter, the Director shall submit a report 
     to the Congress describing the status of flood and erosion 
     mitigation activities carried out with funds authorized 
     under this section.''.

     SEC. 443. STATE AND COMMUNITY MITIGATION ASSISTANCE PROGRAM.

       (a) In General.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as amended by 
     sections 425 and 442, is amended by adding at the end the 
     following new section:

     ``SEC. 1367. STATE AND COMMUNITY MITIGATION ASSISTANCE.

       ``(a) Authority.--The Director shall develop and implement 
     a financial assistance program with amounts made available 
     under section 1366 to States and communities for planning and 
     activities designed to reduce the risk of flood and erosion 
     damage to insured structures and to protect natural and 
     beneficial flood-plain functions.
       ``(b) Mitigation Plan Requirement.--To be eligible to 
     receive financial mitigation assistance, a State or community 
     shall develop, and have approved by the Director, a flood and 
     erosion risk mitigation plan (hereafter in this section 
     referred to as a `mitigation plan'), that is consistent with 
     the criteria established by the Director under section 1361. 
     The mitigation plan shall include a comprehensive strategy 
     for mitigation activities adopted by the State or community 
     following a public hearing.
       ``(c) Notification of Approval.--Not later than 120 days 
     after the submission of a mitigation plan, the Director shall 
     notify the State or community submitting the plan of the 
     Director's approval or disapproval of the plan. If the 
     Director does not approve a plan, the Director shall notify 
     the State or community in writing of the reasons for such 
     disapproval.
       ``(d) Planning Assistance.--
       ``(1) In general.--The Director shall make planning 
     assistance available to States and communities for developing 
     mitigation plans.
       ``(2) Funding.--From any amounts made available for use 
     under section 1366 of the National Flood Insurance Act of 
     1968 in any fiscal year, the Director may use not more than 
     $1,500,000 to provide planning assistance grants to States or 
     communities to develop mitigation plans under this 
     subsection.
       ``(3) Limitations.--
       ``(A) Timing.--A grant for planning assistance may be 
     awarded to a State or community once every 5 years and each 
     grant may cover a period of 1 to 3 years.
       ``(B) Amount.--A grant for planning assistance may not 
     exceed--
       ``(i) $150,000, to any State; or
       ``(ii) $50,000, to any community.
       ``(C) Geographic.--Not more than $300,000 may be awarded to 
     any 1 State and all communities located in that State for 
     planning assistance in each fiscal year.
       ``(e) Eligible Mitigation Activities.--The Director shall 
     determine eligibility for assistance under this section for 
     mitigation activities that shall be technically feasible and 
     cost-effective. These activities may include--
       ``(1) elevation, relocation, demolition, or floodproofing 
     of structures;
       ``(2) The construction repair, or restoration of levees, 
     seawalls, and other structures that reduce the risk of flood 
     damage;
       ``(3) Erosion control measures including beach nourishment.
       ``(4) acquisition by States and communities of property 
     substantially damaged by flood for public use as the Director 
     determines is consistent with sound land management and use 
     in such area; and
       ``(5) the provision of technical assistance by States to 
     communities and individuals to conduct eligible mitigation 
     activities.
       ``(f) Limitations on Mitigation Assistance.--
       ``(1) Amount.--The amount of mitigation assistance provided 
     under subsection (e) may not exceed in any 5-year period--
       ``(A) $10,000,000, to any State; or
       ``(B) $3,300,000, to any community.
       ``(2) Geographic.--Not more than $20,000,000 may be awarded 
     to any 1 State and all communities located in that State for 
     mitigation assistance in any 5-year period.
       ``(g) Matching Requirement.--The Director may provide 
     mitigation assistance to a State or community in an amount 
     not to exceed 3 times the amount that the State or community 
     certifies, as the Director shall require, that the State or 
     community will contribute from other funds to carry out 
     mitigation planning under subsection (d) and eligible 
     activities under subsection (e).
       ``(h) Oversight of Mitigation Plans.--The Director shall 
     conduct oversight of recipients of mitigation assistance to 
     ensure that the mitigation assistance is used in compliance 
     with approved plans.
       ``(i) Recapture.--If the Director determines that a State 
     or community that has received mitigation assistance has not 
     carried out the mitigation activities as set forth in the 
     mitigation plan, the Director shall recapture any unexpended 
     amounts and deposit the amounts in the Fund.
       ``(j) Definition of Community.--For purposes of this 
     section, the term `community' means a political subdivision 
     that has zoning and building code jurisdiction over a 
     particular area of special flood hazards, and that is 
     participating in the National Flood Insurance Program.
       ``(k) Preferences for Mitigation Grants to Communities.--
       ``(1) Cost-beneficial plans.--In providing mitigation 
     grants to communities under this section, the Director shall 
     give preference to communities with mitigation plans that are 
     the most cost-beneficial to the Flood Insurance Fund.
       (2) Additional criteria.--Subject to paragraph (1), the 
     Director will also give preference to communities that--
       ``(A) have the highest rates of participation by property 
     owners in the Federal flood insurance program;
       ``(B) have qualified for credits on premium rates under 
     section 1315(b); and
       ``(C) have experienced repetitive losses that have been 
     most costly to the Fund.''.
       (b) Regulations.--Not later than 6 months after date of 
     enactment of this title, the Director shall issue regulations 
     implementing section 1367 of the National Flood Insurance Act 
     of 1968, as added by subsection (a).

     SEC. 444. REPEAL OF PROGRAM FOR PURCHASE OF CERTAIN INSURED 
                   PROPERTIES.

       (a) Repeal.--Section 1362 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4103) is repealed.
       (b) Transition.--Notwithstanding the repeal under 
     subsection (a), the Director may continue to purchase 
     property under subsections (a) and (b) of section 1362 of the 
     National Flood Insurance Act of 1968, as such section existed 
     immediately before the date of enactment of this title, for a 
     period of 1 year beginning on the date of enactment of this 
     title.

     SEC. 445. TERMINATION OF EROSION THREATENED STRUCTURES 
                   PROGRAM.

       (a) In General.--Section 1306 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013) is amended by striking 
     subsection (c).
       (b) Transition.--The Director may pay amounts under flood 
     insurance contracts for demolition or relocation of 
     structures as provided in section 1306(c) of the National 
     Flood Insurance Act of 1968 (as in effect immediately before 
     the date of enactment of this title) only during the 1-year 
     period beginning on the date of enactment of this title.

     SEC. 446. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE 
                   UNDER THE NATIONAL FLOOD INSURANCE ACT OF 1968.

       Section 1302 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4001) is amended by striking subsection (g).

                 Subtitle E--Flood Insurance Task Force

     SEC. 451. FLOOD INSURANCE INTERAGENCY TASK FORCE.

       (a) Establishment.--There is established an interagency 
     task force to be known as the Flood Insurance Task Force 
     (hereafter in this title referred to as the ``Task Force'').
       (b) Membership.--
       (1) In general.--The Task Force shall consist of 13 
     members, who shall be the designees of--
       (A) the Director;
       (B) the Federal Housing Commissioner;
       (C) the Secretary of Veterans Affairs;
       (D) the Administrator of the Farmers Home Administration;
       (E) the Administrator of the Small Business Administration;
       (F) each member of the Federal Financial Institutions 
     Examination Council;
       (G) the chairman of the Board of Directors of the Federal 
     Home Loan Mortgage Corporation;
       (H) the chairman of the Board of Directors of the Federal 
     National Mortgage Association; and
       (I) the chairman of the Federal Agricultural Mortgage 
     Corporation.
       (2) Qualifications.--Members of the Task Force shall be 
     designated for membership on the Task Force by reason of 
     demonstrated knowledge and competence regarding the National 
     Flood Insurance Program.
       (c) Duties.--The Task Force shall--
       (1) make recommendations to the head of each Federal agency 
     and corporation referred to under subsection (b)(1) regarding 
     the establishment or adoption of standardized enforcement 
     procedures among such agencies and corporations responsible 
     for enforcing compliance with the requirements under the 
     National Flood Insurance Program to ensure the fullest 
     possible compliance with such requirements;
       (2) study the extent to which Federal agencies and the 
     secondary mortgage market can provide assistance in ensuring 
     compliance with the requirements under the National Flood 
     Insurance Program;
       (3) study the extent to which existing programs of Federal 
     agencies and corporations for compliance with the 
     requirements under the National Flood Insurance Program can 
     serve as a model for other Federal agencies responsible for 
     enforcing compliance, and submit to the Congress a report 
     describing the study and any conclusions;
       (4) study--
       (A) the extent to which the flood insurance premium rate 
     structure could be revised to--
       (i) minimize existing premium rate subsidies;
       (ii) reduce or eliminate disaster assistance payments in 
     high-risk erosion areas;
       (iii) incorporate premium rate adjustments for erosion 
     hazards; and
       (iv) account for catastrophic loss events; and
       (B) how changes in the premium rate structure could 
     potentially impact other Federal disaster assistance 
     programs;
       (5) propose strategies to establish an actuarial-based 
     premium structure to account for all insurable risks 
     identified under the National Flood Insurance Act of 1968, as 
     amended by this title; and
       (6) develop guidelines regarding enforcement and compliance 
     procedures, based on the studies and findings of the Task 
     Force and publishing the guidelines in a usable format.
       (d) Reports.--Not later than 2 years after the date of 
     enactment of this title, the Task Force shall transmit to the 
     Congress a report describing its studies and any conclusions.
       (e) Compensation.--Members of the Task Force shall receive 
     no additional compensation by reason of their service on the 
     Task Force.
       (f) Chairperson.--The Director shall select 1 member to 
     serve as the chairperson of the Task Force (hereafter in this 
     section referred to as the ``Chairperson'').
       (g) Meetings and Action.--The Task Force shall meet at the 
     call of the Chairperson or a majority of the members of the 
     Task Force and may take action by a vote of the majority of 
     the members. The Federal Insurance Administrator shall 
     coordinate and call the initial meeting of the Task Force.
       (h) Officers.--The Chairperson may appoint officers to 
     carry out the duties of the Task Force under subsection (c).
       (i) Staff of Federal Agencies.--Upon the request of the 
     Chairperson, the head of any of the Federal agencies and 
     corporations referred to in subsection (b)(1) may detail, on 
     a nonreimbursable basis, any of the personnel of the agency 
     to the Task Force to assist the Task Force in carrying out 
     its duties under this title.
       (j) Powers.--In carrying out this section, the Task Force 
     may hold hearings, sit and act at times and places, take 
     testimony, receive evidence and assistance, provide 
     information, and conduct research as the Task Force considers 
     appropriate.
       (k) Termination.--The Task Force shall terminate 2 years 
     after the date on which all members of the Task Force have 
     been designated under subsection (b)(1).

                  Subtitle F--Miscellaneous Provisions

     SEC. 461. MAXIMUM FLOOD INSURANCE COVERAGE AMOUNTS.

       (a) In General.--Section 1306(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``and'' at the end of clause (i); and
       (B) by striking clause (iii);
       (2) by striking subparagraph (B) of paragraph (1) and 
     inserting the following new subparagraph:
       ``(B) in the case of any nonresidential property, including 
     churches--
       ``(i) $100,000 aggregate liability for each structure; and
       ``(ii) $100,000 aggregate liability for any contents 
     related to each structure;'';
       (3) by striking subparagraph (C) of paragraph (1);
       (4) in paragraph (2), by striking ``so as to enable'' and 
     all that follows through the end of the paragraph and 
     inserting ``up to an amount, including the limits specified 
     in clause (i) of paragraph (1)(A), of $250,000 multiplied by 
     the number of dwelling units in the building;'';
       (5) in paragraph (3), by striking ``so as to enable'' and 
     all that follows through the end of the paragraph and 
     inserting ``up to an amount of $90,000 for any single-family 
     dwelling and $240,000 for any residential structure 
     containing more than one dwelling unit;''; and
       (6) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) in the case of any nonresidential property, including 
     churches, additional flood insurance in excess of the limits 
     specified in clauses (i) and (ii) of paragraph (1)(B) shall 
     be made available to every insured upon renewal and every 
     applicant for insurance up to an amount of $2,400,000 for 
     each structure and $2,400,000 for any contents related to 
     each structure; and''.
       (b) Actuarial Risk Premiums on Repetitive Loss 
     Structures.--Section 1306(b) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end; and
       (2) by striking paragraph (6) and inserting the following 
     new paragraph:
       ``(6) upon determining that a property is a repetitive loss 
     structure, and after making a payment to the insured under 
     section 1304(e), the Director shall charge the applicable 
     risk premium rate for flood insurance based on consideration 
     of the risk involved and accepted actuarial principles under 
     section 1307(a)(1), except that the Director may not increase 
     the premium rate above the level authorized in paragraph (7); 
     and''.
       (c) Annual 10-Percent Premium Rate Increase Cap.--Section 
     1306(b) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4013(b)) is amended by adding at the end the 
     following:
       ``(7) the Director may not increase the premium rate 
     applied to a structure in any 12-month period by more than 10 
     percent over the rate previously applied to that structure 
     during the preceding 12-month period.''.
       (d) Conforming Amendments.--Section 1306(b)(5) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)(5)) 
     is amended--
       (1) by striking ``(A), (B), or (C)'' and inserting ``(A) or 
     (B)''; and
       (2) by striking ``(1)(C),''.

     SEC. 462. ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE 
                   AND CONTROL MEASURES.

       (a) In General.--Section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b) The national flood insurance program established 
     pursuant to subsection (a) shall enable the purchase of 
     insurance to cover the cost of compliance with land use and 
     control measures for--
       ``(1) properties that are repetitive loss structures;
       ``(2) properties that have flood damage in which the cost 
     of repairs equals or exceeds 50 percent of the value of the 
     structure at the time of the flood event; and
       ``(3) properties that have sustained flood damage on 
     multiple occasions, if the Director determines that it is 
     cost-effective and in the best interests of the National 
     Flood Insurance Fund to require compliance with the land use 
     and control measures.
       The Director shall impose a surcharge on each insured of 
     not more than $50 per policy to provide cost of compliance 
     coverage in accordance with the provisions of this 
     subsection.''.
       (b) Applicability.--The provisions of subsection (a) shall 
     apply only to structures that sustain flood-related damage 
     after the date of enactment of this title.

     SEC. 463. FLOOD INSURANCE PROGRAM ARRANGEMENTS WITH PRIVATE 
                   INSURANCE ENTITIES.

       Section 1345(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4081(b)) is amended by striking the period at the 
     end and inserting the following: ``and without regard to the 
     provisions of the Federal Advisory Committee Act.''.

     SEC. 464. UPDATING OF FLOOD INSURANCE RATE MAPS.

       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 subsections:
       ``(e) Assessment of Need To Update Areas.--
       ``(1) Periodic assessments.--Not less than once during each 
     5-year period (the first such period beginning on the date of 
     enactment of the National Flood Insurance Reform Act of 
     1994), or more often as the Director determines necessary, 
     the Director shall assess the need to revise and update each 
     flood insurance rate map, based on an analysis of all natural 
     hazards affecting flood risks.
       ``(2) Upon request.--Upon the request of a State or 
     community stating that a flood insurance rate map needs 
     revision or updating, the Director shall review and update 
     the flood insurance rate map for the State or community. The 
     Director may require the State or community to pay a portion 
     of the cost of updating the map.
       ``(f) Availability.--To promote compliance with the 
     requirements of this title, the Director shall make flood 
     insurance rate maps and related information available free of 
     charge to Federal agencies and to State agencies directly 
     responsible for coordinating the National Flood Insurance 
     Program and to appropriate representatives of communities 
     participating in the National Flood Insurance Program, and 
     at a reasonable cost to all other persons pursuant to 
     section 1310.
       ``(g) Notification.--The Director shall publish in the 
     Federal Register or by other comparable method, notice of 
     each revision to or update of a flood insurance rate map, 
     issued in the form of a Letter of Map Amendment or Letter of 
     Map Revision. Each map revision or update shall become 
     effective upon publication. Such comparable methods shall 
     include all pertinent information, provide for regular and 
     frequent distribution, and be at least as accessible to map 
     users as the Federal Register. Notices published in the 
     Federal Register, or otherwise, shall also include 
     information on how to obtain copies of the revisions or 
     updates.
       ``(h) Availability.--On March 1 and October 1 of each year, 
     the Director shall publish separately and make available in 
     their entirety within a compendium, all revisions to and 
     updates of flood insurance rate maps and all Letters of Map 
     Amendment and Letters of Map Revision that were published in 
     the Federal Register or distributed through other comparable 
     methods during the preceding 6 months, free of charge, to 
     Federal agencies, States, and communities participating in 
     the National Flood Insurance Program pursuant to section 1310 
     and at cost to all other persons.''.

     SEC. 465. EVALUATION OF EROSION HAZARDS.

       (a) In General.--As soon as practicable and not later than 
     2 years after the date of enactment of this Act, the Director 
     shall submit to Congress a report--
       (1) listing all communities that are likely to be 
     identified as having an erosion hazard areas;
       (2) estimating the amount of flood insurance claims 
     attributable to erosion;
       (3) assessing the full economic impact of erosion on the 
     National Flood Insurance Fund;
       (4) measuring the costs and benefits of expenditures 
     necessary from the National Flood Insurance Fund to complete 
     mapping of erosion hazard areas.
       (b) Authorization to Map Erosion Hazard Areas.--In 
     developing an estimate of the amount of flood insurance 
     claims attributable to erosion pursuant to subsection (a), 
     the Director is authorized to map a statistically valid and 
     representative number of communities with erosion hazard 
     areas throughout the United States, including coastal, Great 
     Lakes and riverine areas.
       (c) Economic Impact Study.--The report required under 
     subsection (a)--
       (1) shall assess the economic impact of--
       (A) erosion in communities likely to be identified as 
     having erosion hazard areas; and
       (B) the denial of flood insurance and the establishment of 
     actuarial rates in communities likely to be identified as 
     having erosion hazard areas.
       (2) shall be prepared by an independent private sector 
     firm,
       (3) provide for consultation with a statistically valid and 
     representative number of communities likely to be identified 
     as having erosion hazard areas; and
       (4) address all significant economic factors, including the 
     impact on--
       (A) the value of residential and commercial properties in 
     communities with erosion hazards;
       (B) community tax revenues due to potential changes in 
     property values or commercial activity;
       (C) employment, including the potential loss or gain of 
     existing and new jobs in the community;
       (D) existing businesses and future economic development; 
     and
       (E) the estimated cost of Federal and State disaster 
     assistance to flood victims.

       (d) Cost and Benefits of Mapping.--The report required 
     under subsection (a), shall--
       (1) measure the costs and benefits of mapping erosion 
     hazard areas based upon the Director's estimate of the actual 
     and prospective amount of flood insurance claims attributable 
     to erosion. If the Director determines that the savings to 
     the National Flood Insurance Fund will exceed the cost of 
     mapping erosion hazard areas, the Director shall assess 
     whether the expenditures to map erosion hazard areas is the 
     most cost-beneficial use of flood insurance premiums in light 
     of alternative uses of those funds, including--
       (A) funding the mitigation assistance program under section 
     1367 of the National Flood Insurance Act of 1968 (as added by 
     section 443 of this Act);
       (B) funding additional coverage for compliance with land 
     use and control measures under section 1304(b) of the 
     National Flood Insurance Act of 1968 (as added by section 462 
     of this Act); and
       (C) revising and updating flood insurance rate maps under 
     section 1360(e) of the National Flood Insurance Act of 1968 
     (as added by section 464 of this Act).
       (2) measure the costs and benefits of mapping erosion, 
     other than those directly related to the financial condition 
     of the National Flood Insurance Program, and the cost of not 
     mapping erosion.
       (e) Definition.--For purposes of this section the term 
     ``erosion hazard area'' means, based on erosion rate 
     information and other historical data available, an area 
     where erosion or avulsion is likely to result in damage to or 
     loss of buildings and infrastructure within a 60-year period.
       (f) Authorization of Appropriation.--There are authorized 
     to be appropriated to the Director $5,000,000 to carry out 
     this section.

     SEC. 466. COORDINATION OF FLOOD INSURANCE RATE MAP REVISIONS 
                   AND UPDATES WITH COASTAL ZONE MANAGEMENT 
                   PROGRAMS.

       (a) In General.--In the implementation of revisions to and 
     updates of flood insurance rate maps, the Director shall 
     consult and share information with the Under Secretary of 
     Commerce for Oceans and Atmosphere and representatives from 
     State coastal zone management programs.

     SEC. 467. TECHNICAL MAPPING ADVISORY COUNCIL.

         (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (hereafter in 
     this section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of the Director, 
     or the Director's designee, and 12 additional members to be 
     appointed by the Director or his designee, and shall 
     include--
       (A) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or his or her designee);
       (B) a member of recognized surveying and mapping 
     professional associations and organizations;
       (C) a member of recognized professional engineering 
     associations and organizations;
       (D) a member of recognized professional associations or 
     organizations representing flood hazard determination firms;
       (E) a representative of the United States Geologic Survey;
       (F) a representative of State geologic survey programs;
       (G) a representative of State national flood insurance 
     coordination offices;
       (H) a representative of the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation; 
     and
       (I) a representative of a regulated lending institution.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps.
       (c) Duties.--The Council shall--
       (1) make recommendations to the Director on how to improve 
     in a cost-effective manner the accuracy, general quality, 
     ease of use, and distribution and dissemination of flood 
     insurance rate maps;
       (2) recommend to the Director mapping standards and 
     guidelines for flood insurance rate maps; and
       (3) transmit an annual report to the Director describing--
       (A) the activities of the Council;
       (B) an evaluation of the status and performance of flood 
     insurance rate maps and mapping activities to revise and 
     update flood insurance rate maps, as established by the 
     amendments made under section 464; and
       (C) a summary of recommendations made by the Council to the 
     Director.
       (d) Chairperson.--The members of the Council shall elect 1 
     member to serve as the chairperson of the Council (hereafter 
     in this section referred to as the ``Chairperson'').
       (e) Coordination.--To ensure that the Council's 
     recommendations are consistent to the maximum extent 
     practicable with national digital spatial data collection and 
     management standards, the Chairperson shall consult with the 
     Chairperson of the Federal Geographic Data Committee 
     (established pursuant to OMB Circular A-16).
       (f) Compensation.--Members of the Council shall receive no 
     additional compensation by reason of their service on the 
     Council.
       (g) Meetings and Actions.--
       (1) In general.--The Council shall meet not less than twice 
     each year at the request of the Chairperson or a majority of 
     its members and may take action by a vote of the majority of 
     the members.
       (2) Initial meeting.--The Director, or a person designated 
     by the Director, shall request and coordinate the initial 
     meeting of the Council.
       (h) Officers.--The Chairperson may appoint officers to 
     assist in carrying out the duties of the Council under 
     subsection (c).
       (i) Staff of the Federal Emergency Management Agency.--Upon 
     the request of the Chairperson, the Director may detail, on a 
     nonreimbursable basis, personnel of the Federal Emergency 
     Management Agency to assist the Council in carrying out its 
     duties.
       (j) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research as it considers 
     appropriate.
       (k) Termination.--The Council shall terminate 5 years after 
     the date on which all members of the Council have been 
     appointed under subsection (b)(1).

     SEC. 468. FUNDING FOR INCREASED ADMINISTRATIVE AND 
                   OPERATIONAL RESPONSIBILITIES.

       (a) Availability of Fund.--Section 1310(a) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017(a)), as amended 
     by section 432, is amended in the matter preceding paragraph 
     (1), by inserting ``(except as otherwise provided)'' after 
     ``without fiscal year limitation''.
       (b) Credits of Fund.--Section 1310(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4017(b)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) by redesignating paragraph (6) as paragraph (7); and
       (3) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) any penalties collected under section 102(f) of the 
     Flood Disaster Protection Act of 1973; and''.

     SEC. 469. SEPARATE ACCOUNT FOR NATIONAL FLOOD INSURANCE FUND.

       Section 1310(a) of the National Flood Insurance Act (42 
     U.S.C. 4017(a)) is amended by inserting before ``which shall 
     be available'' the following: ``which shall be maintained in 
     the Treasury as an account separate from any other funds 
     available to the Director, and''.

     SEC. 470. NONWAIVER OF FLOOD PURCHASE REQUIREMENT FOR 
                   RECIPIENTS OF FEDERAL DISASTER ASSISTANCE.

       Section 311(b) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5154(b)) is amended 
     by adding at the end the following: ``The requirements of 
     this subsection may not be waived under section 301.''.

     SEC. 471. INSURANCE WAITING PERIOD.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4014) is amended by adding at the end the 
     following new subsection:
       ``(e)(1) The Director shall establish a waiting period of 
     not less than 10 days from the presentment of payment of a 
     premium for the initial purchase of flood insurance under 
     this title. Flood insurance coverage shall not be available 
     with respect to any claim for damage incurred during such 
     waiting period.
       ``(2) This subsection shall not apply to the initial 
     purchase of flood insurance under this title when the 
     purchase of insurance is in connection with the making, 
     increasing, extension, or renewal of a loan.''.

     SEC. 472. AGRICULTURAL STRUCTURES.

       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:
       ``(d) Agricultural Structures.--
       ``(1) Exemption from floodway activity restrictions.--
     Notwithstanding any other provision of law, the adequate land 
     use and control measures adopted in an area (or subdivision 
     thereof) pursuant to section 1315(a) may provide, at the 
     discretion of the appropriate State or local authority, for 
     the repair and restoration to pre-damaged conditions of an 
     agricultural structure that--
       ``(A) is a repetitive loss structure; or
       ``(B) has incurred flood-related damage to the extent that 
     the cost of restoring the structure to its pre-damaged 
     condition would equal or exceed 50 percent of the market 
     value of the structure before the damage occurred.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `agricultural structure' means any structure 
     used exclusively in connection with the production, 
     harvesting, storage, raising, or drying of agricultural 
     commodities; and
       ``(B) the term `agricultural commodities' means 
     agricultural commodities and livestock.''.

     SEC. 473. IMPLEMENTATION REVIEW BY THE DIRECTOR.

       Section 1320 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4027) is amended--
       (1) by striking ``The Director'' and inserting ``(a) In 
     General.--The Director''; and
       (2) by adding at the end the following new subsection:
       ``(b) Effects of Flood Insurance Program.--The Director 
     shall include, as part of the biennial report submitted under 
     subsection (a), a chapter reporting on the effects on the 
     flood insurance program observed through implementation of 
     requirements under the National Flood Insurance Reform Act of 
     1994.''.

     SEC. 474. REGULATIONS.

       The Director and the head of any appropriate Federal agency 
     may each issue any regulations necessary to carry out the 
     applicable provisions of this title and the applicable 
     amendments made by this title.

     SEC. 475. PROHIBITED FLOOD DISASTER ASSISTANCE.

       (a) General Prohibition.--Notwithstanding any other 
     provision of law, no Federal disaster relief assistance made 
     available in a flood disaster area may be used to make a 
     payment (including any loan assistance payment) to a person 
     for repair, replacement, or restoration for damage to any 
     personal, residential, or commercial property if that person 
     at any time has received flood disaster assistance that was 
     conditional on the person first having obtained flood 
     insurance under applicable Federal law and subsequently 
     having failed to obtain and maintain flood insurance as 
     required under applicable Federal law on such property.
       (b) Amendment to the Flood Disaster Protection Act of 
     1973.--Section 102(a) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(a)) is amended--
       (1) By striking ``, during the anticipated economic or 
     useful life of the project,''; and
       (2) By adding at the end of the following: ``The 
     requirement of maintaining flood insurance shall apply during 
     the life of the property, regardless of transfer of ownership 
     of such property.''.
       (c) Definition.--For purposes of this section, the term 
     ``flood disaster area'' means an area with respect to which--
       (1) the Secretary of Agriculture finds, or has found, to 
     have been substantially affected by a natural disaster in the 
     United States pursuant to section 321(a) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. Section 1961(a)); or
       (2) the President declares, or has declared, the existence 
     of a major disaster or emergency pursuant to the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. Section 5121 et seq.), as a result of flood conditions 
     existing in or affecting that area.
                                 ______


                        DOLE AMENDMENT NO. 1542

  Mr. RIEGLE (for Mr. Dole) proposed an amendment to the bill S. 1275, 
supra; as follows:

       At the end of title III, add the following new section:

     SEC.   . CONSUMER SURVEYS AND REPORTS.

       (a) Surveys.--Not later than 6 months after the date of 
     enactment of this Act, the Federal banking agencies (as 
     defined in section 3 of the Federal Deposit Insurance Act) 
     and the Secretary of Housing and Urban Development shall 
     jointly conduct an objective and statistically valid survey 
     of financial services consumers to determine the general 
     public awareness of, perceived benefits to consumer of, and 
     effectiveness of the Federal banking laws under which the 
     Federal banking agencies and Department of Housing and Urban 
     Development operate that are intended for the protection of 
     such consumers, including--
       (1) the Expedited Funds Availability Act;
       (2) the Truth in Lending Act;
       (3) the Truth in Savings Act;
       (4) the Real Estate Settlement Procedures Act of 1974;
       (5) the Home Mortgage Disclosure Act of 1975;
       (6) the Equal Credit Opportunity Act;
       (7) the Community Reinvestment Act of 1977;
       (8) the Home Equity Loan Consumer Protection Act;
       (9) the Fair Credit and Charge Card Disclosure Act; and
       (10) the rules and regulations promulgated under those 
     banking laws.
       (b) Consultation.--In developing such a survey, the Federal 
     banking agencies and the Secretary of Housing and Urban 
     Development shall consult with consumer groups, insured 
     depository institutions, other lenders, and any other 
     interested parties.
       (c) Informaiton for Surveyed Consumers.--The survey shall 
     provide for distribution to participating consumers a summary 
     explanation of the Federal banking law being surveyed and how 
     each is currently being implemented.
       (d) Report.--Not later than 60 days after completion of its 
     survey under subsection (a), the Federal banking agencies and 
     the Secretary of Housing and Urban Development shall submit a 
     report of the results of their survey to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Banking, Finance and Urban Affairs of the House 
     of Representatives.
                                 ______


                       DORGAN AMENDMENT NO. 1543

  Mr. RIEGLE (for Mr. Dorgan) proposed an amendment to the bill S. 
1275, supra; as follows:

       On page 43, line 16, strike ``or''.
       On page 43, line 20, strike the period at the end and 
     insert ``; or''.
       On page 43, between lines 20 and 21, insert the following:
       (D) is located in an area which is not a metropolitan 
     statistical area and which has experienced a decrease in 
     population of not less than 10 percent (as determined in the 
     most recent decennial census) between 1980 and 1990.
                                 ______


                        DOLE AMENDMENT NO. 1544

  Mr. RIEGLE (for Mr. Dole) proposed an amendment to the bill S. 1275, 
supra; as follows:

       At the end of title III, add the following new section:

     SEC. ____. OFFSET OF COSTS OF CERTAIN PROGRAMS.

       (a) HUD Multifamily Housing Disposition Process.--
       (1) Findings.--The Congress finds that--
       (A) the portfolio of multifamily housing project mortgages 
     insured by the FHA is severely troubled and at risk of 
     default, requiring the Secretary to increase loss reserves 
     from $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to 
     cover estimated future losses;
       (B) the inventory of multifamily housing projects owned by 
     the Secretary has more than tripled since 1989, and, by the 
     end of 1993, may exceed 75,000 units;
       (C) the cost to the Federal Government of owning and 
     maintaining multifamily housing projects escalated to 
     approximately $250,000,000 in fiscal year 1992;
       (D) the inventory of multifamily housing projects subject 
     to mortgages held by the Secretary has increased 
     dramatically, to more than 2,400 mortgages, and approximately 
     half of these mortgages, with over 230,000 units, are 
     delinquent;
       (E) the inventory of insured and formerly insured 
     multifamily housing projects is rapidly deteriorating, 
     endangering tenants and neighborhoods;
       (F) over 5 million families today have a critical need for 
     housing that is affordable and habitable; and
       (G) the current statutory framework governing the 
     disposition of multifamily housing projects effectively 
     impedes the Government's ability to dispose of properties, 
     protect tenants, and ensure that projects are maintained over 
     time.
       (2) Management and disposition of multifamily housing 
     projects.--Section 203 of the Housing and Community 
     Development Amendments of 1978 (12 U.S.C. 1701z-11) is 
     amended to read as follows:

     ``SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING 
                   PROJECTS.

       ``(a) Goals.--The Secretary of Housing and Urban 
     Development (in this section referred to as the `Secretary') 
     shall manage or dispose of multifamily housing projects that 
     are owned by the Secretary or that are subject to a mortgage 
     held by the Secretary in a manner that--
       ``(1) is consistent with the National Housing Act and this 
     section;
       ``(2) will protect the financial interests of the Federal 
     Government; and
       ``(3) will, in the least costly fashion among reasonable 
     available alternatives, further the goals of--
       ``(A) preserving housing so that it can remain available to 
     and affordable by low-income persons;
       ``(B) preserving and revitalizing residential 
     neighborhoods;
       ``(C) maintaining existing housing stock in a decent, safe, 
     and sanitary condition;
       ``(D) minimizing the involuntary displacement of tenants;
       ``(E) maintaining housing for the purpose of providing 
     rental housing, cooperative housing, and homeownership 
     opportunities for low-income persons; and
       ``(F) minimizing the need to demolish multifamily housing 
     projects.

     The Secretary, in determining the manner in which a project 
     is to be managed or disposed of, may balance competing goals 
     relating to individual projects in a manner that will further 
     the purposes of this section.
       ``(b) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Multifamily housing project.--The term `multifamily 
     housing project' means any multifamily rental housing project 
     which is, or prior to acquisition by the Secretary was, 
     assisted or insured under the National Housing Act, or was 
     subject to a loan under section 202 of the Housing Act of 
     1959.
       ``(2) Subsidized project.--The term `subsidized project' 
     means a multifamily housing project receiving any of the 
     following types of assistance immediately prior to the 
     assignment of the mortgage on such project to, or the 
     acquisition of such mortgage by, the Secretary:
       ``(A) Below market interest rate mortgage insurance under 
     the proviso of section 221(d)(5) of the National Housing Act.
       ``(B) Interest reduction payments made in connection with 
     mortgages insured under section 236 of the National Housing 
     Act.
       ``(C) Direct loans made under section 202 of the Housing 
     Act of 1959.
       ``(D) Assistance in the form of--
       ``(i) rent supplement payments under section 101 of the 
     Housing and Urban Development Act of 1965;
       ``(ii) housing assistance payments made under section 23 of 
     the United States Housing Act of 1937 (as in effect before 
     January 1, 1975); or
       ``(iii) housing assistance payments made under section 8 of 
     the United States Housing Act of 1937 (excluding payments 
     made for tenant-based assistance under section 8),
     if (except for purposes of section 183(c) of the Housing and 
     Community Development Act of 1987) such assistance payments 
     are made to more than 50 percent of the units in the project.
       ``(3) Formerly subsidized project.--The term `formerly 
     subsidized project' means a multifamily housing project owned 
     by the Secretary that was a subsidized project immediately 
     prior to its acquisition by the Secretary.
       ``(4) Unsubsidized project.--The term `unsubsidized 
     project' means a multifamily housing project owned by the 
     Secretary that is not a subsidized project or a formerly 
     subsidized project.
       ``(c) Management or Disposition of Property.--
       ``(1) Disposition to purchasers.--The Secretary is 
     authorized, in carrying out this section, to dispose of a 
     multifamily housing project owned by the Secretary on a 
     negotiated, competitive bid, or other basis, on such terms as 
     the Secretary deems appropriate considering the low-income 
     character of the project and the requirements of subsection 
     (a), to a purchaser determined by the Secretary to be capable 
     of--
       ``(A) satisfying the conditions of the disposition;
       ``(B) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and repair expenses to ensure that 
     the project will remain in decent, safe, and sanitary 
     condition;
       ``(C) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(D) providing adequate organizational staff and financial 
     resources to the project; and
       ``(E) meeting such other requirements as the Secretary may 
     determine.
       ``(2) Contracting for management services.--The Secretary 
     is authorized, in carrying out this section--
       ``(A) to contract for management services for a multifamily 
     housing project that is owned by the Secretary (or for which 
     the Secretary is mortgagee in possession), on a negotiated, 
     competitive bid, or other basis at a price determined by the 
     Secretary to be reasonable, with a manager the Secretary has 
     determined is capable of--
       ``(i) implementing a sound financial and physical 
     management program that is designed to enable the project to 
     meet anticipated operating and maintenance expenses to ensure 
     that the project will remain in decent, safe, and sanitary 
     condition;
       ``(ii) responding to the needs of the tenants and working 
     cooperatively with tenant organizations;
       ``(iii) providing adequate organizational, staff, and other 
     resources to implement a management program determined by the 
     Secretary; and
       ``(iv) meeting such other requirements as the Secretary may 
     determine; and
       ``(B) to require the owner of a multifamily housing project 
     that is subject to a mortgage held by the Secretary to 
     contract for management services for the project in the 
     manner described in subparagraph (A).
       ``(d) Maintenance of Housing Projects.--
       ``(1) Housing projects owned by the secretary.--In the case 
     of multifamily housing projects that are owned by the 
     Secretary (or for which the Secretary is mortgagee in 
     possession), the Secretary shall--
       ``(A) to the greatest extent possible, maintain all such 
     occupied projects in a decent, safe, and sanitary condition;
       ``(B) to the greatest extent possible, maintain full 
     occupancy in all such projects; and
       ``(C) maintain all such projects for purposes of providing 
     rental or cooperative housing.
       ``(2) Housing projects subject to a mortgage held by the 
     secretary.--In the case of any multifamily housing project 
     that is subject to a mortgage held by the Secretary, the 
     Secretary shall require the owner of the project to carry out 
     the requirements of paragraph (1).
       ``(e) Required Assistance.--In carrying out the goal 
     specified in subsection (a)(3)(A), the Secretary shall take 
     not less than one of the following actions:
       ``(1) Contract with owner.--Enter into contracts under 
     section 8 of the United States Housing Act of 1937, to the 
     extent budget authority is available, with owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary.
       ``(A) Subsidized or formerly subsidized projects receiving 
     certain assistance.--In the case of a subsidized or formerly 
     subsidized project referred to in subparagraphs (A) through 
     (C) of subsection (b)(2)--
       ``(i) the contract shall be sufficient to assist at least 
     all units covered by an assistance contract under any of the 
     authorities referred to in subsection (b)(2)(D) before 
     acquisition, unless the Secretary acts pursuant to the 
     provisions of subparagraph (C);
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to this paragraph that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this subparagraph shall also provide that 
     when a vacancy occurs, the owner shall lease the available 
     unit to a family eligible for assistance under section 8; and
       ``(iii) the Secretary shall take actions to ensure the 
     availability and affordability, as defined in paragraph 
     (3)(B), for the remaining useful life of the project, as 
     defined by the Secretary, of any unit located in any project 
     referred to in subparagraphs (A) through (C) of subsection 
     (b)(2) that does not otherwise receive project-based 
     assistance under this subparagraph. To carry out this clause, 
     the Secretary may require purchasers to establish use or rent 
     restrictions maintaining affordability, as defined in 
     paragraph (3)(B).
       ``(B) Subsidized or formerly subsidized projects receiving 
     other assistance.--In the case of a subsidized or formerly 
     subsidized project referred to in subsection (b)(2)(D)--
       ``(i) the contract shall be sufficient to assist at least 
     all units in the project that are covered, or were covered 
     immediately before foreclosure on or acquisition of the 
     project by the Secretary, by an assistance contract under any 
     of the authorities referred to in such subsection, unless the 
     Secretary acts pursuant to provisions of subparagraph (C); 
     and
       ``(ii) in the case of units requiring project-based rental 
     assistance pursuant to this paragraph that are occupied by 
     families who are not eligible for assistance under section 8, 
     a contract under this paragraph shall also provide that when 
     a vacancy occurs, the owner shall lease the available unit to 
     a family eligible for assistance under section 8.
       ``(C) Exceptions to subparagraphs (a) and (b).--In lieu of 
     providing project-based assistance under subparagraph (A) or 
     (B), the Secretary may require certain units in unsubsidized 
     projects to contain use restrictions providing that such 
     units will be available to and affordable by very low-income 
     families for the remaining useful life of the project, as 
     defined by the Secretary, if--
       ``(i) the Secretary matches any reduction in units 
     otherwise required to be assisted with project-based 
     assistance under subparagraph (A) or (B) with at least an 
     equivalent increase in units made affordable to very low-
     income persons within unsubsidized projects;
       ``(ii) low-income tenants residing in units otherwise 
     requiring project-based assistance under subparagraph (A) or 
     (B) upon disposition receive section 8 tenant-based 
     assistance; and
       ``(iii) the units described in clause (i) are located 
     within the same market area.
       ``(D) Contract requirements for unsubsidized projects.--
     Notwithstanding actions taken pursuant to subparagraph (C), 
     in unsubsidized projects, the contract shall at least be 
     sufficient to provide--
       ``(i) project-based rental assistance for all units that 
     are covered or were covered immediately before foreclosure or 
     acquisition by an assistance contract under--

       ``(I) section 8(b)(2) of the United States Housing Act of 
     1937 (as such section existed before October 1, 1983) (new 
     construction and substantial rehabilitation); section 8(b) of 
     such Act (property disposition); section 8(d)(2) of such Act 
     (project-based certificates); section 8(e)(2) of such Act 
     (moderate rehabilitation); section 23 of such Act (as in 
     effect before January 1, 1975); or section 101 of the Housing 
     and Urban Development Act of 1965 (rent supplements); or
       ``(II) section 8 of the United States Housing Act of 1937, 
     following conversion from section 101 of the Housing and 
     Urban Development Act of 1965; and

       ``(ii) tenant-based assistance under section 8 of the 
     United States Housing Act of 1937 for tenants currently 
     residing in units that were covered by an assistance contract 
     under the Loan Management Set-Aside program under section 
     8(b) of the United States Housing Act of 1937 immediately 
     before foreclosure or acquisition of the project by the 
     Secretary.
       ``(2) Annual contribution contracts.--In the case of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure or after sale by the 
     Secretary, enter into annual contribution contracts with 
     public housing agencies to provide tenant-based assistance 
     under section 8 of the United States Housing Act of 1937 to 
     all low-income families who are eligible for such assistance 
     on the date that the project is acquired by the purchaser. 
     The Secretary shall take action under this paragraph only 
     after making a determination that there is available in the 
     area an adequate supply of habitable affordable housing for 
     low-income families. Actions taken pursuant to this paragraph 
     may be taken in connection with not more than 10 percent of 
     the aggregate number of units in subsidized or formerly 
     subsidized projects disposed of by the Secretary annually.
       ``(3) Other assistance.--
       ``(A) In general.--In accordance with the authority 
     provided under the National Housing Act, reduce the selling 
     price, apply use or rent restrictions on certain units, or 
     provide other financial assistance to the owners of 
     multifamily housing projects that are acquired by a purchaser 
     other than the Secretary at foreclosure, or after sale by the 
     Secretary, on terms which will ensure that--
       ``(i) at least those units otherwise required to receive 
     project-based section 8 assistance pursuant to subparagraphs 
     (A), (B), or (D) of paragraph (1) are available to and 
     affordable by low-income persons; and
       ``(ii) for the remaining useful life of the project, as 
     defined by the Secretary, there shall be in force such use or 
     rent restrictions as the Secretary may prescribe.
       ``(B) Definition.--A unit shall be considered affordable 
     under this paragraph if--
       ``(i) for very low-income tenants, the rent for such unit 
     does not exceed 30 percent of 50 percent of the area median 
     income, as determined by the Secretary, with adjustments for 
     family size; and
       ``(ii) for low-income tenants other than very low-income 
     tenants, the rent for such unit does not exceed 30 percent of 
     80 percent of the area median income, as determined by the 
     Secretary, with adjustments for family size.
       ``(C) Very low-income tenants.--The Secretary shall provide 
     assistance under section 8 of the United States Housing Act 
     of 1937 to any very low-income tenant currently residing in a 
     unit otherwise required to receive project-based assistance 
     under section 8, pursuant to subparagraph (A), (B), or (D) of 
     paragraph (1), if the rents charged such tenants as a result 
     of actions taken pursuant to this paragraph exceed the amount 
     payable as rent under section 3(a) of the United States 
     Housing Act of 1937.
       ``(4) Transfer for use under other programs of the 
     secretary.--
       ``(A) In general.--Enter into an agreement providing for 
     the transfer of a multifamily housing project--
       ``(i) to a public housing agency for use of the project as 
     public housing; or
       ``(ii) to an owner or another appropriate entity for use of 
     the project under section 202 of the Housing Act of 1959 or 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act.
       ``(B) Requirements for agreement.--The agreement described 
     in subparagraph (A) shall--
       ``(i) contain such terms, conditions, and limitations as 
     the Secretary determines appropriate, including requirements 
     to assure use of the project under the public housing, 
     section 202, and section 811 programs; and
       ``(ii) ensure that no current tenant will be displaced as a 
     result of actions taken under this paragraph.
       ``(f) Other Assistance.--In addition to the actions 
     authorized by subsection (e), the Secretary may take any of 
     the following actions:
       ``(1) Short-term loans.--Provide short-term loans to 
     facilitate the sale of multifamily housing projects to 
     nonprofit organizations or to public agencies if--
       ``(A) authority for such loans is provided in advance in an 
     appropriations Act;
       ``(B) such loans are for a term of not more than 5 years;
       ``(C) the Secretary is presented with satisfactory 
     documentation, evidencing a commitment of permanent financing 
     to replace such short-term loan, from a lender who meets 
     standards set forth by the Secretary; and
       ``(D) the terms of such loans are consistent with 
     prevailing practices in the marketplace or the provision of 
     such loans results in no cost to the Government, as defined 
     in section 502 of the Congressional Budget Act.
       ``(2) Tenant-based assistance.--In connection with projects 
     referred to in subsection (e), make available tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 to very low-income families (as defined in section 
     3(b)(2) of the United States Housing Act of 1937) that do not 
     otherwise qualify for project-based assistance.
       ``(3) Alternative uses.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, and subject to notice to and comment from existing 
     tenants, allow not more than--
       ``(i) 5 percent of the total number of units in multifamily 
     housing projects that are disposed of by the Secretary during 
     any 1-year period to be made available for uses other than 
     rental or cooperative uses, including low-income 
     homeownership opportunities, or in any particular project, 
     community space, office space for tenant or housing-related 
     service providers or security programs, or small business 
     uses, if such uses benefit the tenants of the project; and
       ``(ii) 5 percent of the total number of units in 
     multifamily housing projects that are disposed of by the 
     Secretary during any 1-year period to be used in any manner, 
     if the Secretary and the unit of general local government or 
     area-wide governing body determine that such use will further 
     fair housing, community development, or neighborhood 
     revitalization goals.
       ``(B) Displacement protection.--The Secretary shall make 
     available tenant-based rental assistance under section 8 of 
     the United States Housing Act of 1937 to any tenant displaced 
     as a result of actions taken by the Secretary pursuant to 
     subparagraph (A), and the Secretary shall take such actions 
     as the Secretary determines necessary to ensure the 
     successful use of any tenant-based assistance.
       ``(g) Authorization of Use or Rent Restrictions in 
     Unsubsidized Projects.--In carrying out the goals specified 
     in subsection (a), the Secretary may require certain units in 
     unsubsidized projects to contain use or rent restrictions 
     providing that such units will be available to and affordable 
     by very low-income persons for the remaining useful life of 
     the property, as defined by the Secretary.
       ``(h) Contract Requirements.--
       ``(1) Contract term.--
       ``(A) In general.--Contracts for project-based rental 
     assistance under section 8 of the United States Housing Act 
     of 1937 provided pursuant to this section shall be for a term 
     of not more than 15 years; and
       ``(B) Contract term of less than 15 years.--Notwithstanding 
     subparagraph (A), to the extent that units receive project-
     based assistance for a contract term of less than 15 years, 
     the Secretary shall require that rents charged to tenants for 
     such units not exceed the amount payable for rent under 
     section 3(a) of the United States Housing Act of 1937 for a 
     period of at least 15 years.
       ``(2) Contract rent.--
       ``(A) In general.--The Secretary shall set contract rents 
     for section 8 project-based rental contracts issued under 
     this section at levels that, in conjunction with other 
     resources available to the purchaser, provide for the 
     necessary costs of rehabilitation of such project and do not 
     exceed the percentage of the existing housing fair market 
     rents for the area (as determined by the Secretary under 
     section 8(c) of the United States Housing Act of 1937) as the 
     Secretary may prescribe.
       ``(B) Up-front grants and loans.--If such an approach is 
     determined to be more cost-effective, the Secretary may 
     utilize the budget authority provided for project-based 
     section 8 contracts issued under this section to--
       ``(i) provide project-based section 8 rental assistance; 
     and
       ``(ii)(I) provide up-front grants for the necessary cost of 
     rehabilitation; or
       ``(II) pay for any cost to the Government, as defined in 
     section 502 of the Congressional Budget Act, for loans made 
     pursuant to subsection (f)(1).
       ``(i) Disposition Plan.--
       ``(1) In general.--Prior to the sale of a multifamily 
     housing project that is owned by the Secretary, the Secretary 
     shall develop a disposition plan for the project that 
     specifies the minimum terms and conditions of the Secretary 
     for disposition of the project, the initial sales price that 
     is acceptable to the Secretary, and the assistance that the 
     Secretary plans to make available to a prospective purchaser 
     in accordance with this section. The initial sales price 
     shall reflect the intended use of the property after sale.
       ``(2) Community and tenant input into disposition plans and 
     sales.--
       ``(A) In general.--In carrying out this section, the 
     Secretary shall develop procedures to obtain appropriate and 
     timely input into disposition plans from officials of the 
     unit of general local government affected, the community in 
     which the project is situated, and the tenants of the 
     project.
       ``(B) Tenant organizations.--The Secretary shall develop 
     procedures to facilitate, where feasible and appropriate, the 
     sale of multifamily housing projects to existing tenant 
     organizations with demonstrated capacity or to public or 
     nonprofit entities which represent or are affiliated with 
     existing tenant organizations.
       ``(C) Technical assistance.--
       ``(i) Use of funds.--To carry out the procedures developed 
     under subparagraphs (A) and (B), the Secretary is authorized 
     to provide technical assistance, directly or indirectly, and 
     to use amounts appropriated for technical assistance under 
     the Emergency Low Income Housing Preservation Act of 1987, 
     the Low-Income Housing Preservation and Resident 
     Homeownership Act of 1990, subtitle B of title IV of the 
     Cranston-Gonzalez National Affordable Housing Act, or under 
     this section for the provision of technical assistance under 
     this section.
       ``(ii) Source of funds.--Recipients of technical assistance 
     funding under the Emergency Low Income Housing Preservation 
     Act of 1987, the Low-Income Housing Preservation and Resident 
     Homeownership Act of 1990, subtitle B of title IV of the 
     Cranston-Gonzalez National Affordable Housing Act, or under 
     this section shall be permitted to provide technical 
     assistance to the extent of such funding under any of such 
     programs or under this section, notwithstanding the source of 
     funding.
       ``(j) Right of First Refusal.--
       ``(1) Procedure.--
       ``(A) Notification by secretary of the acquisition of 
     title.--Not later than 30 days after acquiring title to a 
     project, the Secretary shall notify the unit of general local 
     government and the State agency or agencies designated by the 
     Governor of the acquisition of such title.
       ``(B) Expression of interest.--Not later than 45 days after 
     receiving notification from the Secretary under subparagraph 
     (A), the unit of general local government or designated State 
     agency may submit to the Secretary a preliminary expression 
     of interest in the project. The Secretary may take such 
     actions as may be necessary to require the unit of general 
     local government or designated State agency to substantiate 
     such interest.
       ``(C) Timely expression of interest.--If the unit of 
     general local government or designated State agency has 
     expressed interest in the project before the expiration of 
     the 45-day period referred to in subparagraph (B), and has 
     substantiated such interest if requested, the Secretary, upon 
     approval of a disposition plan for a project, shall notify 
     the unit of general local government and designated State 
     agency of the terms and conditions of the disposition plan 
     and give the unit of general local government or designated 
     State agency not more than 90 days after the date of such 
     notification to make an offer to purchase the project.
       ``(D) No timely expression of interest.--If the unit of 
     general local government or designated State agency does not 
     express interest before the expiration of the 45-day period 
     referred to in subparagraph (B), or does not substantiate an 
     expressed interest if requested, the Secretary, upon approval 
     of a disposition plan, may offer the project for sale to any 
     interested person or entity.
       ``(2) Acceptance of offers.--Where the Secretary has given 
     the unit of general local government or designated State 
     agency 90 days to make an offer to purchase the project, the 
     Secretary shall accept an offer that complies with the terms 
     and conditions of the disposition plan. The Secretary may 
     accept an offer that does not comply with the terms and 
     conditions of the disposition plan if the Secretary 
     determines that the offer will further the goals specified in 
     subsection (a) by actions that include extension of the 
     duration of low-income affordability restrictions or 
     otherwise restructuring the transaction in a manner that 
     enhances the long-term affordability for low-income persons. 
     The Secretary shall, in particular, have discretion to reduce 
     the initial sales price in exchange for the extension of low-
     income affordability restrictions beyond the period of 
     assistance contemplated by the attachment of assistance 
     pursuant to subsection (e). If the Secretary and the unit of 
     general local government or designated State agency cannot 
     reach agreement within 90 days, the Secretary may offer the 
     project for sale to the general public.
       ``(3) Purchase by unit of general local government or 
     designated state agency.--Notwithstanding any other provision 
     of law, a unit of general local government (including a 
     public housing agency) or designated State agency may 
     purchase a subsidized or formerly subsidized project in 
     accordance with this subsection.
       ``(4) Applicability.--This subsection shall apply to 
     projects that are acquired on or after the effective date of 
     this subsection. With respect to projects acquired before 
     such effective date, the Secretary may apply--
       ``(A) the requirements of paragraphs (2) and (3) of section 
     203(e) as such paragraphs existed immediately before the 
     effective date of this subsection; or
       ``(B) the requirements of paragraphs (1) and (2) of this 
     subsection, if the Secretary gives the unit of general local 
     government or designated State agency--
       ``(i) 45 days to express interest in the project; and
       ``(ii) if the unit of general local government or 
     designated State agency expresses interest in the project 
     before the expiration of the 45-day period, and substantiates 
     such interest if requested, 90 days from the date of 
     notification of the terms and conditions of the disposition 
     plan to make an offer to purchase the project.
       ``(k) Displacement of Tenants and Relocation Assistance.--
       ``(1) In general.--Whenever tenants will be displaced as a 
     result of the disposition of, or repairs to, a multifamily 
     housing project that is owned by the Secretary (or for which 
     the Secretary is mortgagee in possession), the Secretary 
     shall identify tenants who will be displaced, and shall 
     notify all such tenants of their pending displacement and of 
     any relocation assistance which may be available. In the case 
     of a multifamily housing project that is not owned by the 
     Secretary (and for which the Secretary is not mortgagee in 
     possession), the Secretary shall require the owner of the 
     project to carry out the requirements of this paragraph.
       ``(2) Rights of displaced tenants.--The Secretary shall 
     assure for any such tenant (who continues to meet applicable 
     qualification standards) the right--
       ``(A) to return, whenever possible, to a repaired unit;
       ``(B) to occupy a unit in another multifamily housing 
     project owned by the Secretary;
       ``(C) to obtain housing assistance under the United States 
     Housing Act of 1937; or
       ``(D) to receive any other available relocation assistance 
     as the Secretary determines to be appropriate.
       ``(l) Mortgage and Project Sales.--
       ``(1) In general.--The Secretary may not approve the sale 
     of any loan or mortgage held by the Secretary (including any 
     loan or mortgage owned by the Government National Mortgage 
     Association) on any subsidized project or formerly subsidized 
     project, unless such sale is made as part of a transaction 
     that will ensure that such project will continue to operate 
     at least until the maturity date of such loan or mortgage, in 
     a manner that will provide rental housing on terms at least 
     as advantageous to existing and future tenants as the terms 
     required by the program under which the loan or mortgage was 
     made or insured prior to the assignment of the loan or 
     mortgage on such project to the Secretary.
       ``(2) Sale of certain projects.--The Secretary may not 
     approve the sale of any subsidized project--
       ``(A) that is subject to a mortgage held by the Secretary; 
     or
       ``(B) if the sale transaction involves the provision of any 
     additional subsidy funds by the Secretary or a recasting of 
     the mortgage, unless such sale is made as part of a 
     transaction that will ensure that such project will continue 
     to operate at least until the maturity date of the loan or 
     mortgage, in a manner that will provide rental housing on 
     terms at least as advantageous to existing and future tenants 
     as the terms required by the program under which the loan or 
     mortgage was made or insured prior to the proposed sale of 
     the project.
       ``(3) Mortgage sales to state and local governments.--
     Notwithstanding any provision of law that may require 
     competitive sales or bidding, the Secretary may carry out 
     negotiated sales of subsidized or formerly subsidized 
     mortgages held by the Secretary, without the competitive 
     selection of purchasers or intermediaries, to units of 
     general local government or State agencies, or groups of 
     investors that include at least one such unit of general 
     local government or State agency, if the negotiations are 
     conducted with such agencies, except that--
       ``(A) the terms of any such sale shall include the 
     agreement of the purchasing agency or unit of local 
     government or State agency to act as mortgagee or owner of a 
     beneficial interest in such mortgages, in a manner consistent 
     with maintaining the projects that are subject to such 
     mortgages for occupancy by the general tenant group intended 
     to be served by the applicable mortgage insurance program, 
     including, to the extent the Secretary determines 
     appropriate, authorizing such unit of local government or 
     State agency to enforce the provisions of any regulatory 
     agreement or other program requirements applicable to the 
     related projects; and
       ``(B) the sales prices for such mortgages shall be, in the 
     determination of the Secretary, the best prices that may be 
     obtained for such mortgages from a unit of general local 
     government or State agency, consistent with the expectation 
     and intention that the projects financed will be retained for 
     use under the applicable mortgage insurance program for the 
     life of the initial mortgage insurance contract.
       ``(4) Sale of mortgages covering unsubsidized projects.--
     Notwithstanding any other provision of law, the Secretary may 
     sell mortgages held on unsubsidized projects on such terms 
     and conditions as the Secretary may prescribe.
       ``(m) Report to Congress.--Not later than June 1 of each 
     year, the Secretary shall submit to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Banking, Finance and Urban Affairs of the House of 
     Representatives, a report describing the status of 
     multifamily housing projects owned by or subject to mortgages 
     held by the Secretary, which report shall include--
       ``(1) the name, address, and size of each project;
       ``(2) the nature and date of assignment;
       ``(3) the status of the mortgage;
       ``(4) the physical condition of the project;
       ``(5) an occupancy profile of the project, including the 
     income, family size, and race of current residents as well as 
     the rents paid by such residents;
       ``(6) the proportion of units in a project that are vacant;
       ``(7) the date on which the Secretary became mortgagee in 
     possession;
       ``(8) the date and conditions of any foreclosure sale;
       ``(9) the date of acquisition by the Secretary;
       ``(10) the date and conditions of any property disposition 
     sale;
       ``(11) a description of actions undertaken pursuant to this 
     section, including--
       ``(A) a comparison of results between actions taken after 
     enactment of the Housing and Community Development Act of 
     1993 and actions taken in years prior to such enactment;
       ``(B) a description of any impediments to the disposition 
     or management of multifamily housing projects, together with 
     a recommendation of proposed legislative or regulatory 
     changes designed to ameliorate such impediments;
       ``(C) a description of actions taken to restructure or 
     commence foreclosure on delinquent multifamily mortgages held 
     by the Department; and
       ``(D) a description of actions taken to monitor and prevent 
     the default of multifamily housing mortgages held by the 
     Federal Housing Administration;
       ``(12) a description of any of the functions performed in 
     connection with this section that are contracted out to 
     public or private entities or to States, including--
       ``(A) the costs associated with such delegation;
       ``(B) the implications of contracting out or delegating 
     such functions for current Department field or regional 
     personnel, including anticipated personnel or work load 
     reductions;
       ``(C) necessary oversight required by Department personnel, 
     including anticipated personnel hours devoted to such 
     oversight;
       ``(D) a description of any authority granted to such public 
     or private entities or States in conjunction with the 
     functions that have been delegated or contracted out or that 
     are not otherwise available for use by Department personnel; 
     and
       ``(E) the extent to which such public or private entities 
     or States include tenants of multifamily housing projects in 
     the disposition planning for such projects;
       ``(13) a description of the activities carried out under 
     subsection (j) during the preceding year; and
       ``(14) a description and assessment of the rules, 
     guidelines, and practices governing the Department's 
     management of multifamily housing projects that are owned by 
     the Secretary (or for which the Secretary is mortgagee in 
     possession) as well as the steps that the Secretary has taken 
     or plans to take to improve the management performance of the 
     Department.''.
       (3) Effective date.--The Secretary shall, by notice 
     published in the Federal Register, which shall take effect 
     upon publication, establish such requirements as may be 
     necessary to implement the amendments made by this 
     subsection. The notice shall invite public comments, and the 
     Secretary shall issue final regulations based on the initial 
     notice, taking into account any public comments received.
       (b) Repeal of the National Small Business Tree Planting 
     Program.--Section 24 of the Small Business Act (15 U.S.C. 
     651) is repealed.
                                 ______


                        CRAIG AMENDMENT NO. 1545

  Mr. D'AMATO (for Mr. Craig) proposed an amendment to the bill S. 
1275, supra; as follows:

     SEC.  SIMPLIFIED DISCLOSURE FOR EXISTING DEPOSITORS.

       (a) In General.--Section 43(b)(3) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1831t(b)(3)) is amended to read as 
     follows:
       ``(3) Acknowledgement of disclosure.--
       ``(A) New depositors.--With respect to any depositor who 
     was not a depositor at the depository institution before June 
     19, 1994, receive any deposit for the account of such 
     depositor only if the depositor has signed a written 
     acknowledgement that--
       ``(i) the institution is not federally insured; and
       ``(ii) if the institution fails, the Federal Government 
     does not guarantee that the depositor will get back the 
     depositor's money.
       ``(B) Current depositors.--Receive any deposit after the 
     effective date of this paragraph for the account of any 
     depositor who was a depositor before June 19, 1994, only if--
       ``(i) the depositor has signed a written acknowledgement 
     described in subparagraph (A); or
       ``(ii) the institution has complied with the provisions of 
     subparagraph (C) which are applicable as of the date of the 
     deposit.
       ``(C) Alternative provision of notice to current 
     depositors.--
       ``(i) In general.--Transmit to each depositor who was a 
     depositor before June 19, 1994, and has not signed a written 
     acknowledgement described in subparagraph (A)--

       ``(I) a card containing the information described in 
     clauses (i) and (ii) of subparagraph (A), and a line for the 
     signature of the depositor; and

       ``(II) accompanying materials requesting the depositor to 
     sign the card, and return the signed card to the institution.

       ``(ii) Manner and timing of notice.--

       ``(I) First notice.--Make the transmission described in 
     clause (i) via first class mail within 90 days after June 19, 
     1994.
       ``(II) Second notice.--Make a 2d transmission described in 
     clause (i) via first class mail not less than 30 days and not 
     more than 45 days after a transmission to the depositor in 
     accordance with subclause (I), if the institution has not, by 
     the date of such mailing, received from the depositor a card 
     referred to in clause (i)(I) which has been signed by the 
     depositor.
       ``(III) Third notice.--Make a 3d transmission described in 
     clause (i) via first class mail not less than 30 days and not 
     more than 45 days after a transmission to the depositor in 
     accordance with subclause (II), if the institution has not, 
     by the date of such mailing, received from the depositor a 
     card referred to in clause (i)(I) which has been signed by 
     the depositor.''.

       (b) Effective Date.--Section 43(b)(3) of the Federal 
     Deposit Insurance Act, as amended by subsection (a), shall 
     take effect in accordance with section 151(a)(2)(D) of the 
     Federal Deposit Insurance Corporation Improvement Act of 
     1991.
                                 ______


                 BRYAN (AND OTHERS) AMENDMENT NO. 1546

  Mr. RIEGLE (for Mr. Bryan for himself, Mr. D'Amato, Mr. Domenici, Mr. 
Burns, and Mr. Mack) proposed an amendment to the bill S. 1275, supra; 
as follows:

       On page 160, between lines 6 and 7, insert the following 
     new section:

     SEC.   . COMMERCIAL MORTGAGE RELATED SECURITIES.

       (a) In General.--Section 3(a)(41)(A)(i) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)(41)(A)(i)) is 
     amended--
       (1) by striking ``or on a residential'' and inserting ``on 
     a residential''; and
       (2) by inserting before the semicolon ``, or on one or more 
     parcels of real estate upon which is located one or more 
     commercial structures''.
       (b) Amendment to the Revised Statutes.--Paragraph Seventh 
     of section 5136 of the Revised Statutes (12 U.S.C. 24) is 
     amended in the twelfth sentence, by striking ``(15 U.S.C. 
     78c(a)(41))), subject to such regulations'' and inserting 
     ``(15 U.S.C. 78c(a)(41)). The exception provided for the 
     securities described in subparagraphs (A), (B), and (C) shall 
     be subject to such regulations''.
       (c) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller of the Currency shall 
     promulgate final regulations, in accordance with the 
     thirteenth sentence of Paragraph Seventh of section 5136 of 
     the Revised Statutes (as amended by subsection (b)), to carry 
     out the amendments made by this section.
       (d) Effective Date.--The amendments made by this section 
     shall become effective upon the date of promulgation of final 
     regulations under subsection (c).
       (e) State Opt Out.--Notwithstanding the amendments made by 
     this section, a note that is directly secured by a first lien 
     on one or more parcels of real estate upon which is located 
     one or more commercial structures shall not be considered to 
     be a mortgage related security under section 3(a)(41) of the 
     Securities Exchange Act of 1934 in any State that, prior to 
     the expiration of 7 years after the date of enactment of this 
     Act, enacts a statute that specifically refers to this 
     section and either prohibits or provides for a more 
     limited authority to purchase, hold, or invest in such 
     securities by any person, trust, corporation, partnership, 
     association, business trust, or business entity or class 
     thereof than is provided by the amendments made by this 
     subsection. The enactment by any State of any statute of 
     the type described in the preceding sentence shall not 
     affect the validity of any contractual commitment to 
     purchase, hold, or invest that was made prior thereto, and 
     shall not require the sale or other disposition of any 
     securities acquired prior thereto.
                                 ______


                 MITCHELL (AND DOLE) AMENDMENT NO. 1547

  Mr. MITCHELL (for himself and Mr. Dole) proposed an amendment to the 
bill S. 1275, supra; as follows:

       At the appropriate place insert the following:
       Sec.   . It is the sense of the Senate that--
       (a) Congress has a constitutional obligation to conduct 
     oversight of matters relating to the operations of the 
     government, including matters related to any governmental 
     investigations which may, from time to time, be undertaken.
       (b) The Majority Leader and the Republican Leader should 
     meet and determine the appropriate timetable, procedures, and 
     forum for appropriate Congressional oversight, including 
     hearings on all matters related to ``Madison Guaranty Savings 
     and Loan Association (`MGS&L'), Whitewater Development 
     Corporation and Capital Management Services Inc. (`CMS').''
       (c) No witness called to testify at these hearings shall be 
     granted immunity under sections 6002 and 6005 of Title 18, 
     United States Code, over the objection of Special Counsel 
     Robert B. Fiske, Jr.
       (d) The hearings should be structured and sequenced in such 
     a manner that in the judgment of the Leaders they would not 
     interfere with the ongoing investigation of Special Counsel 
     Robert B. Fiske, Jr.
                                 ______


                     METZENBAUM AMENDMENT NO. 1548

  Mr. METZENBAUM proposed an amendment to the bill S. 1275, supra; as 
follows:

       At the appropriate place in the committee substitute insert 
     the following:
       It is the sense of the Senate that:

     No insurer shall enter into a transfer agreement or transfer 
     a contract of insurance pursuant to a transfer agreement 
     unless the transferring insurer has first provided or caused 
     to be provided to each policyholder of the insurer affected 
     by the agreement a notice of the intent of the insurer to 
     transfer the contract of insurance held by such policyholder.
       (b) Form of Notice.--The notice shall be sent by first-
     class mail, addressed to the last known address of the 
     policyholder or to the address to which premium notices or 
     other policy documents are sent or, with respect to home 
     service business, by personal delivery with acknowledged 
     receipt. A notice of intent to transfer shall also be sent to 
     the transferring insurer's agent or broker of record on the 
     affected policy.
       (c) Content of Notice.--The notice required by subsection 
     (a) shall state or provide--
       (1) the date the intended transfer and novation of the 
     contract of insurance of the policyholder is proposed to take 
     place and become effective;
       (2) the name, address, and telephone number of the 
     transferring insurer and the assuming insurer under the 
     proposed transfer agreement;
       (3) that the transfer and novation of the insurance 
     contract of the policyholder cannot take effect without the 
     written consent of the policyholder, except as provided in 
     section 5 of this Act;
       (4) the procedures and any time limitation for consenting 
     to the transfer and novation;
       (5) a summary informing the policyholder regarding any 
     adverse effect that the policyholder might experience as a 
     result of consenting to the transfer and novation;
       (6) a statement that, without the written consent of the 
     policyholder, the transferring insurer will remain as the 
     insurance company of the policyholder or beneficiary, except 
     as provided in section 5 of this Act;
       (7) a statement that the assuming insurer is licensed to 
     write the type of business being transferred in the State 
     where the policyholder resides, or is otherwise authorized, 
     under applicable law, to assume such business;
       (8) the name, address, and telephone number of the person 
     designated by the transferring insurer as the person for 
     receiving the written consent of the policyholder affected by 
     the proposed transfer and novation;
       (9) the address and telephone number of the chief insurance 
     regulatory official of the State in which the policyholder 
     resides;
       (10) financial data for the transferring insurer and the 
     assuming insurer involved in the proposed transfer agreement, 
     including--
       (A)(i) the ratings, together with enough information to 
     understand where the ratings fall within the range of rating 
     categories of each rating agency, for the last 5 years, if 
     available, or if not available for 5 years, for such lesser 
     period as is available, from each nationally recognized 
     insurance company rating organization that has rated the 
     insurer, including an explanation of the meaning of each 
     rating category of each rating organization;
       (ii) if ratings are unavailable for any year of the 5-year 
     period, a disclosure of this fact; and
       (iii) a statement that any or all of the above insurance 
     company rating organization reports may be obtained at no 
     cost by writing or calling an address or phone number listed 
     in the statement;
       (B) a balance sheet as of December 31 for each of the 3 
     years immediately preceding the notice, if available, or for 
     such lesser period as is available, and as of the date of the 
     most recent quarterly statement;
       (C) a copy of the Management's Discussion and Analysis that 
     was filed as a supplement to the annual statement of the 
     preceding year; and
       (D) an explanation of the reason for the proposed transfer 
     signed by the highest executive official of the transferring 
     insurer and the assuming insurer;
       (11) a statement setting forth the financial condition of 
     the transferring insurer and of the assuming insurer under 
     the proposed transfer agreement, and the effect the 
     transaction will have on the financial condition of each such 
     insurer;
       (12) an opinion by a disinterested third-party expert, such 
     as an actuary, finding that the transfer is fair and in the 
     best interests of the policyholders affected by the transfer, 
     and a statement that the report on which the opinion is based 
     is available at no cost by writing or calling an address and 
     phone number listed in the statement;

                          ____________________