[Congressional Record Volume 150, Number 90 (Friday, June 25, 2004)]
[Extensions of Remarks]
[Page E1274]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CORRECTING ENROLLMENT OF S. 2238, THE BUNNING-BEREUTER-BLUMENAUER FLOOD 
                      INSURANCE REFORM ACT OF 2004

                                 ______
                                 

                               speech of

                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                         Monday, June 21, 2004

  Mr. OXLEY. Mr. Speaker, I rise today in support of S. 2238, the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004. This 
important piece of legislation not only reauthorizes the National Flood 
Insurance Program through September 30, 2008, but also makes much-
needed reforms that will help the Federal Emergency Management Agency 
(FEMA) stem wasteful use of taxpayer funds on properties that flood 
over and over again.
  By now most Members are well aware of the long road we have traveled 
in developing this legislation. After years' worth of discussions with 
floodplain managers, taxpayer groups, environmental groups, insurance 
professionals and the housing industry, the House Financial Services 
Committee passed H.R. 253 by a unanimous, bipartisan vote on July 23, 
2003. The bill was subsequently passed in the House by an overwhelming 
margin on November 20, 2003. The National Flood Insurance Program is 
now set to expire on June 30, 2004; it is critical that we act on this 
bill today.
  Thanks to the hard work of my colleagues, there should be no doubt 
that this legislation will receive a favorable vote once again. The 
Senate bill is, in most respects, identical to the one we passed here 
in the House. That bill, H.R. 253, authorized funds to address severe 
repetitive loss properties for both the existing Flood Mitigation 
Assistance (FMA) program and authorized a new pilot program to address 
these properties. Under the House bill, this trial pilot program 
addressed the properties in a simple, straightforward manner: the owner 
of a severe repetitive loss property would be charged a rate closer to 
the actuarial, risk-based rates for their national flood insurance 
policy if certain conditions were met. Safeguards were built into the 
system to ensure that homeowners would be protected. Through our bill, 
the number of repetitive flood loss properties would be decreased 
because FEMA would have the money and the means to take care of them.
  S. 2238 adds a title creating certain policyholder protections 
designed to ensure swift action for the payment of claims in the event 
of a flood. In addition, the Director of the Federal Emergency 
Management Agency (FEMA) will be tasked with promulgating regulations 
outlining an appeals process for policyholders with respect to claims, 
proofs of loss, and loss estimates related to flood insurance policies. 
And at the request of FEMA, the Senate has made minor changes regarding 
implementation of the flood mitigation programs originally set forth in 
the House bill.
  On a personal note, perhaps the most appropriate change made by the 
Senate was in naming this legislation for Congressman Doug Bereuter, my 
good friend who is retiring from the House this year. This legislation 
is a testament to his hard work and to the dedication he has shown 
throughout his career to further the interests of not only his 
constituents but also the Nation as a whole and to the ideal of good 
government. Congressman Bereuter worked tirelessly to craft this bill 
with Senators Bunning and Sarbanes as well as Ranking Member Frank and 
Representatives Blumenauer and Baker. Mr. Baker was also particularly 
helpful in crafting this legislation and in providing a voice for his 
constituents in Louisiana and other states particularly hard-hit by 
repetitive flood losses.

  It is important to note once again that the National Flood Insurance 
Program has been long overdue for change. The Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 addresses the problem of 
repetitive loss properties (buildings that flood regularly because of 
their location) and the threat such properties pose to the ability of 
the NFIP to meet obligations to policyholders without drawing on 
taxpayer funds. Repetitive loss properties are a problem in nearly 
every one of the fifty States and cost the NFIP approximately $200 
million each year, which is an unacceptable expense. One percent of all 
properties in the NFIP account for approximately 25 percent to 30 
percent of all the NFIP losses. Repetitive loss properties have for too 
long exhausted the NFIP's funds and subverted the original intent of 
the program.
  Despite the problems caused by repetitive flood loss properties, the 
NFIP is a program that provides important protections for homeowners 
who live on the Nation's floodplains. Though most of these homes have 
never flooded, the NFIP is a vital safeguard with a proven record of 
success. These much-needed reforms will enhance the program's 
effectiveness by requiring people living in flood prone areas to reduce 
their risk of flooding in a way that is not punitive and which saves 
the program and taxpayers money. This legislation should enjoy 
widespread bipartisan support in the Congress and will be welcomed by 
the people who work every day to control floods all across the country.

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