[Congressional Record Volume 154, Number 74 (Tuesday, May 6, 2008)]
[Senate]
[Pages S3819-S3836]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4700. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2881, to amend title 49, United States Code, to 
authorize appropriations for the Federal Aviation Administration for 
fiscal years 2008 through 2011, to improve aviation safety and 
capacity, to provide stable funding for the national aviation system, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. CERTAIN PROVISION IS NULL AND VOID.

       Section 831, and the amendments made by such section, are 
     hereby null and void and shall have no effect.

[[Page S3820]]

                                 ______
                                 
  SA 4701. Mrs. MURRAY submitted an amendment intended to be proposed 
by her to the bill H.R. 2881, to amend title 49, United States Code, to 
authorize appropriations for the Federal Aviation Administration for 
fiscal years 2008 through 2011, to improve aviation safety and 
capacity, to provide stable funding for the national aviation system, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 95, strike lines 7 through 21, and insert the 
     following:
       (b) Funding.--Subparagraph (E) of section 47124(b)(3) is 
     amended--
       (1) by striking ``and'' after ``2006,''; and
       (2) by inserting ``$9,000,000 for fiscal year 2008, 
     $9,500,000 for fiscal year 2009, $10,000,000 for fiscal year 
     2010, and $10,500,000 for fiscal year 2011'' after ``2007,''; 
     and
       (3) by inserting after ``paragraph.'' the following: ``If 
     the Secretary finds that all or part of an amount made 
     available under this subparagraph is not required during a 
     fiscal year to carry out this paragraph, the Secretary may 
     use during such fiscal year the amount not so required to 
     carry out the program continued under paragraph (b)(1) of 
     this section.''.
       (c) Limitation on Local Share.--Section 47124(b)(3) is 
     amended by adding at the end the following:
       ``(F) Limitation on local share for certain airports.--
     Notwithstanding any other provision of this section, in the 
     case of an airport that is certified under part 139 of title 
     14, Code of Federal Regulations, and that has more than 
     10,000 but fewer than 50,000 passenger enplanements per year, 
     the local share of the costs of carrying out the Contract 
     Tower Program shall not exceed 20 percent.''.
                                 ______
                                 
  SA 4702. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 72, after line 15, insert the following:

     SEC. 33. MAXIMUM COVERAGE LIMITS.

       Subsection (b) of section 1306 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (2), by striking ``$250,000'' and 
     inserting ``$335,000'';
       (2) in paragraph (3), by striking ``$100,000'' and 
     inserting ``$135,000''; and
       (3) in paragraph (4)--
       (A) by striking ``$500,000'' each place such term appears 
     and inserting ``$670,000''; and
       (B) by inserting before ``; and'' the following: ``; except 
     that, in the case of any nonresidential property that is a 
     structure containing more than one dwelling unit that is made 
     available for occupancy by rental (notwithstanding the 
     provisions applicable to the determination of the risk 
     premium rate for such property), additional flood insurance 
     in excess of such limits shall be made available to every 
     insured upon renewal and every applicant for insurance so as 
     to enable any such insured or applicant to receive coverage 
     up to a total amount that is equal to the product of the 
     total number of such rental dwelling units in such property 
     and the maximum coverage limit per dwelling unit specified in 
     paragraph (2); except that in the case of any such multi-
     unit, nonresidential rental property that is a pre-FIRM 
     structure (as such term is defined in section 578(b) of the 
     National Flood Insurance Reform Act of 1994 (42 U.S.C. 4014 
     note)), the risk premium rate for the first $500,000 of 
     coverage shall be determined in accordance with section 
     1307(a)(2) and the risk premium rate for any coverage in 
     excess of such amount shall be determined in accordance with 
     section 1307(a)(1)''.
                                 ______
                                 
  SA 4703. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 10, line 24, strike ``Any increase'' and all that 
     follows through the second period on page 11, line 4, and 
     insert the following: ``Any increase in the risk premium rate 
     charged for flood insurance on any property that is covered 
     by a flood insurance policy on the date of completion of the 
     updating or remapping described in paragraph (1) that is a 
     result of such updating or remapping shall be phased in over 
     a 5-year period at the rate of 20 percent per year.''.
                                 ______
                                 
  SA 4704. Mr. WICKER (for himself, Mr. Cochran, Mr. Vitter, Ms. 
Landrieu, and Mr. Martinez) submitted an amendment intended to be 
proposed by him to the bill S. 2284, to amend the National Flood 
Insurance Act of 1968, to restore the financial solvency of the flood 
insurance fund, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, insert the following:

     SEC. ____. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.

       (a) In General.--Section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Multiperil Coverage for Damage From Flood or 
     Windstorm.--
       ``(1) In general.--Subject to paragraph (8), the national 
     flood insurance program established pursuant to subsection 
     (a) shall enable the purchase of optional insurance against 
     loss resulting from physical damage to or loss of real 
     property or personal property related thereto located in the 
     United States arising from any flood or windstorm, subject to 
     the limitations in this subsection and section 1306(b).
       ``(2) Community participation requirement.--Multiperil 
     coverage pursuant to this subsection may not be provided in 
     any area (or subdivision thereof) unless an appropriate 
     public body shall have adopted adequate mitigation measures 
     (with effective enforcement provisions) which the Director 
     finds are consistent with the criteria for construction 
     described in the International Code Council building codes 
     relating to wind mitigation.
       ``(3) Prohibition against duplicative coverage.--Multiperil 
     coverage pursuant to this subsection may not be provided with 
     respect to any structure (or the personal property related 
     thereto) for any period during which such structure is 
     covered, at any time, by flood insurance coverage made 
     available under this title.
       ``(4) Nature of coverage.--Multiperil coverage pursuant to 
     this subsection shall--
       ``(A) cover losses only from physical damage resulting from 
     flooding or windstorm; and
       ``(B) provide for approval and payment of claims under such 
     coverage upon proof that such loss must have resulted from 
     either windstorm or flooding, but shall not require for 
     approval and payment of a claim that the specific cause of 
     the loss, whether windstorm or flooding, be distinguished or 
     identified.
       ``(5) Actuarial rates.--Multiperil coverage pursuant to 
     this subsection shall be made available for purchase for a 
     property only at chargeable risk premium rates that, based on 
     consideration of the risks involved and accepted actuarial 
     principles, and including operating costs and allowance and 
     administrative expenses, are required in order to make such 
     coverage available on an actuarial basis for the type and 
     class of properties covered.
       ``(6) Terms of coverage.--The Director shall, after 
     consultation with persons and entities referred to in section 
     1306(a), provide by regulation for the general terms and 
     conditions of insurability which shall be applicable to 
     properties eligible for multiperil coverage under this 
     subsection, subject to the provisions of this subsection, 
     including--
       ``(A) the types, classes, and locations of any such 
     properties which shall be eligible for such coverage, which 
     shall include residential and nonresidential properties;
       ``(B) subject to paragraph (7), the nature and limits of 
     loss or damage in any areas (or subdivisions thereof) which 
     may be covered by such coverage;
       ``(C) the classification, limitation, and rejection of any 
     risks which may be advisable;
       ``(D) appropriate minimum premiums;
       ``(E) appropriate loss deductibles; and
       ``(F) any other terms and conditions relating to insurance 
     coverage or exclusion that may be necessary to carry out this 
     subsection.
       ``(7) Limitations on amount of coverage.--The regulations 
     issued pursuant to paragraph (6) shall provide that the 
     aggregate liability under multiperil coverage made available 
     under this subsection shall not exceed the lesser of the 
     replacement cost for covered losses or the following amounts, 
     as applicable:
       ``(A) Residential structures.--In the case of residential 
     properties, which shall include structures containing 
     multiple dwelling units that are made available for occupancy 
     by rental (notwithstanding any treatment or classification of 
     such properties for purposes of section 1306(b))--
       ``(i) for any single-family dwelling, $500,000;
       ``(ii) for any structure containing more than one dwelling 
     unit, $500,000 for each separate dwelling unit in the 
     structure, which limit, in the case of such a structure 
     containing multiple dwelling units that are made available 
     for occupancy by rental, shall be applied so as to enable any 
     insured or applicant for insurance to receive coverage for 
     the structure up to a total amount that is equal to the 
     product of the total

[[Page S3821]]

     number of such rental dwelling units in such property and the 
     maximum coverage limit per dwelling unit specified in this 
     clause; and
       ``(iii) $150,000 per dwelling unit for--

       ``(I) any contents related to such unit; and
       ``(II) any necessary increases in living expenses incurred 
     by the insured when losses from flooding or windstorm make 
     the residence unfit to live in.

       ``(B) Nonresidential properties.--In the case of 
     nonresidential properties (including church properties)--
       ``(i) $1,000,000 for any single structure; and
       ``(ii) $750,000 for--

       ``(I) any contents related to such structure; and
       ``(II) in the case of any nonresidential property that is a 
     business property, any losses resulting from any partial or 
     total interruption of the insured's business caused by damage 
     to, or loss of, such property from flooding or windstorm, 
     except that for purposes of such coverage, losses shall be 
     determined based on the profits the covered business would 
     have earned, based on previous financial records, had the 
     flood or windstorm not occurred.

       ``(8) Effective date.--This subsection shall take effect 
     on, and shall apply beginning on, June 30, 2008.''.
       (b) Prohibition Against Duplicative Coverage.--Chapter 1 of 
     The National Flood Insurance Act of 1968 is amended by adding 
     at the end the following:


               ``prohibition against duplicative coverage

       ``Sec. 1325.  Flood insurance under this title may not be 
     provided with respect to any structure (or the personal 
     property related thereto) for any period during which such 
     structure is covered, at any time, by multiperil insurance 
     coverage made available pursuant to section 1304(c).''.
       (c) Compliance With State and Local Law.--Section 1316 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4023) is 
     amended--
       (1) by inserting ``(a) Flood Protection Measures.--'' 
     before ``No new''; and
       (2) by adding at the end the following new subsection:
       ``(b) Windstorm Protection Measures.--No new multiperil 
     coverage shall be provided under section 1304(c) for any 
     property that the Director finds has been declared by a duly 
     constituted State or local zoning authority, or other 
     authorized public body to be in violation of State or local 
     laws, regulations, or ordinances, which are intended to 
     reduce damage caused by windstorms.''.
       (d) Criteria for Land Management and Use.--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) Windstorms.--
       ``(1) Studies and investigations.--The Director shall carry 
     out studies and investigations under this section to 
     determine appropriate measures in wind events as to wind 
     hazard prevention, and may enter into contracts, agreements, 
     and other appropriate arrangements to carry out such 
     activities. Such studies and investigations shall include 
     laws, regulations, and ordinance relating to the orderly 
     development and use of areas subject to damage from windstorm 
     risks, and zoning building codes, building permits, and 
     subdivision and other building restrictions for such areas.
       ``(2) Criteria.--On the basis of the studies and 
     investigations pursuant to paragraph (1) and such other 
     information as may be appropriate, the Direct shall establish 
     comprehensive criteria designed to encourage, where 
     necessary, the adoption of adequate State and local measures 
     which, to the maximum extent feasible, will assist in 
     reducing damage caused by windstorms, discourage density and 
     intensity or range of use increases in locations subject to 
     windstorm damage, and enforce restrictions on the alteration 
     of wetlands coastal dunes and vegetation and other natural 
     features that are known to prevent or reduce such damage.
       ``(3) Coordination with state and local governments.--The 
     Director shall work closely with and provide any necessary 
     technical assistance to State, interstate, and local 
     governmental agencies, to encourage the application of 
     criteria established under paragraph (2) and the adoption and 
     enforcement of measures referred to in such paragraph.''.
       (e) Definitions.--Section 1370 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121) is amended--
       (1) in paragraph (14), by striking ``and'' at the end;
       (2) in paragraph (15) by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(16) the term `windstorm' means any hurricane, tornado, 
     cyclone, typhoon, or other wind event.''.
                                 ______
                                 
  SA 4705. Ms. LANDRIEU (for herself, Mr. Pryor, and Mrs. Lincoln) 
submitted an amendment intended to be proposed by her to the bill S. 
2284, to amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 9, strike line 20 and all that follows through page 
     10, line 9, and insert the following:
       (c) Study on Mandatory Purchase Requirements.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall conduct 
     and submit to Congress a study assessing the impact, 
     effectiveness, and feasibility of amending the provisions of 
     the Flood Disaster Protection Act of 1973 regarding the 
     properties that are subject to the mandatory flood insurance 
     coverage purchase requirements under such Act to extend such 
     requirements to properties located in any area that would be 
     designated as an area having special flood hazards but for 
     the existence of a structural flood protection system.
       (2) Content of report.--In carrying out the study required 
     under paragraph (1), the Comptroller General shall 
     determine--
       (A) the regulatory, financial and economic impacts of 
     extending the mandatory purchase requirements described under 
     paragraph (1) on the costs of homeownership, the actuarial 
     soundness of the National Flood Insurance Program, the 
     Federal Emergency Management Agency, local communities, 
     insurance companies, and local land use;
       (B) the effectiveness of extending such mandatory purchase 
     requirements in protecting homeowners from financial loss and 
     in protecting the financial soundness of the National Flood 
     Insurance Program; and
       (C) any impact on lenders of complying with or enforcing 
     such extended mandatory requirements.
                                 ______
                                 
  SA 4706. Ms. LANDRIEU (for herself and Mr. Nelson of Florida) 
submitted an amendment intended to be proposed by her to the bill S. 
2284, to amend the National Flood Insurance Act of 1968, to restore the 
financial solvency of the flood insurance fund, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike section 31 and insert the following:

     SEC. 31. FLOOD INSURANCE ADVOCATE.

       Chapter II of the National Flood Insurance Act of 1968 is 
     amended by inserting after section 1330 (42 U.S.C. 4041) the 
     following new section:

     ``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

       ``(a) Establishment of Position.--
       ``(1) In general.--There shall be in the Federal Emergency 
     Management Agency an Office of the Flood Insurance Advocate 
     which shall be headed by the National Flood Insurance 
     Advocate. The National Flood Insurance Advocate shall--
       ``(A) to the extent amounts are provided pursuant to 
     subsection (n), be compensated at the same rate as the 
     highest rate of basic pay established for the Senior 
     Executive Service under section 5382 of title 5, United 
     States Code, or, if the Director so determines, at a rate 
     fixed under section 9503 of such title;
       ``(B) be appointed by the Director without regard to 
     political affiliation;
       ``(C) report to and be under the general supervision of the 
     Director, but shall not report to, or be subject to 
     supervision by, any other officer of the Federal Emergency 
     Management Agency; and
       ``(D) consult with the Assistant Administrator for 
     Mitigation or any successor thereto, but shall not report to, 
     or be subject to the general supervision by, the Assistant 
     Administrator for Mitigation or any successor thereto.
       ``(2) Qualifications.--An individual appointed under 
     paragraph (1)(B) shall have a background in customer service, 
     accounting, auditing, financial analysis, law, management 
     analysis, public administration, investigations, or 
     insurance.
       ``(3) Restriction on employment.--An individual may be 
     appointed as the National Flood Insurance Advocate only if 
     such individual was not an officer or employee of the Federal 
     Emergency Management Agency with duties relating to the 
     national flood insurance program during the 2-year period 
     ending with such appointment and such individual agrees not 
     to accept any employment with the Federal Emergency 
     Management Agency for at least 2 years after ceasing to be 
     the National Flood Insurance Advocate. Service as an employee 
     of the National Flood Insurance Advocate shall not be taken 
     into account in applying this paragraph.
       ``(4) Staff.--To the extent amounts are provided pursuant 
     to subsection (n), the National Flood Insurance Advocate may 
     employ such personnel as may be necessary to carry out the 
     duties of the Office.
       ``(5) Independence.--The Director shall not prevent or 
     prohibit the National Flood Insurance Advocate from 
     initiating, carrying out, or completing any audit or 
     investigation, or from issuing any subpoena or summons during 
     the course of any audit or investigation.
       ``(6) Removal.--The President and the Director shall have 
     the power to remove, discharge, or dismiss the National Flood 
     Insurance Advocate. Not later than 15 days after the removal, 
     discharge, or dismissal of the Advocate, the President or the 
     Director shall report to the Committee on Banking of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives on the basis for such removal, discharge, 
     or dismissal.
       ``(b) Functions of Office.--It shall be the function of the 
     Office of the Flood Insurance Advocate to--
       ``(1) assist insureds under the national flood insurance 
     program in resolving problems with the Federal Emergency 
     Management Agency relating to such program;
       ``(2) identify areas in which such insureds have problems 
     in dealings with the Federal

[[Page S3822]]

     Emergency Management Agency relating to such program;
       ``(3) propose changes in the administrative practices of 
     the Federal Emergency Management Agency to mitigate problems 
     identified under paragraph (2);
       ``(4) identify potential legislative, administrative, or 
     regulatory changes which may be appropriate to mitigate such 
     problems;
       ``(5) conduct, supervise, and coordinate--
       ``(A) systematic and random audits and investigations of 
     insurance companies and associated entities that sell or 
     offer for sale insurance policies against loss resulting from 
     physical damage to or loss of real property or personal 
     property related thereto arising from any flood occurring in 
     the United States, to determine whether such insurance 
     companies or associated entities are allocating only flood 
     losses under such insurance policies to the National Flood 
     Insurance Program;
       ``(B) audits and investigations to determine if an 
     insurance company or associated entity described under 
     subparagraph (A) is negotiating on behalf of the National 
     Flood Insurance Program with third parties in good faith;
       ``(C) examinations to ensure that insurance companies and 
     associated entities are properly compiling and preserving 
     documentation for independent biennial financial statement 
     audits as required under section 62.23(l) of title 44, Code 
     of Federal Regulations; and
       ``(D) any other audit, examination, or investigation that 
     the National Flood Insurance Advocate determines necessary to 
     ensure the effective and efficient operation of the national 
     flood insurance program;
       ``(6) conduct, supervise, and coordinate investigations 
     into the operations of the national flood insurance program 
     for the purpose of--
       ``(A) promoting economy and efficiency in the 
     administration of such program;
       ``(B) preventing and detecting fraud and abuse in the 
     program; and
       ``(C) identifying, and referring to the Attorney General 
     for prosecution, any participant in such fraud or abuse;
       ``(7) identify and investigate conflicts of interest that 
     undermine the economy and efficiency of the national flood 
     insurance program; and
       ``(8) investigate allegations of consumer fraud.
       ``(c) Authority of the National Flood Insurance Advocate.--
     The National Flood Insurance Advocate may--
       ``(1) have access to all records, reports, audits, reviews, 
     documents, papers, recommendations, or other material 
     available to the Director which relate to administration or 
     operation of the national flood insurance program with 
     respect to which the National Flood Insurance Advocate has 
     responsibilities under this section;
       ``(2) undertake such investigations and reports relating to 
     the administration or operation of the national flood 
     insurance program as are, in the judgment of the National 
     Flood Insurance Advocate, necessary or desirable;
       ``(3) request such information or assistance as may be 
     necessary for carrying out the duties and responsibilities 
     provided by this section from any Federal, State, or local 
     governmental agency or unit thereof;
       ``(4) require by subpoena the production of all 
     information, documents, reports, answers, records (including 
     phone records), accounts, papers, emails, hard drives, backup 
     tapes, software, audio or visual aides, and any other data 
     and documentary evidence necessary in the performance of the 
     functions assigned to the National Flood Insurance Advocate 
     by this section, which subpoena, in the case of contumacy or 
     refusal to obey, shall be enforceable by order of any 
     appropriate United States district court, provided, that 
     procedures other than subpoenas shall be used by the National 
     Flood Insurance Advocate to obtain documents and information 
     from any Federal agency;
       ``(5) issue a summons to compel the testimony of any person 
     in the employ of any insurance company or associated entity, 
     described under subsection (b)(5)(A), or any successor to 
     such company or entity, including any member of the board of 
     such company or entity, any trustee of such company or 
     entity, any partner in such company or entity, or any agent 
     or representative of such company or entity;
       ``(6) administer to or take from any person an oath, 
     affirmation, or affidavit, whenever necessary in the 
     performance of the functions assigned by this section, which 
     oath, affirmation, or affidavit when administered or taken by 
     or before an employee of the Office designated by the 
     National Flood Insurance Advocate shall have the same force 
     and effect as if administered or taken by or before an 
     officer having a seal;
       ``(7) have direct and prompt access to the Director when 
     necessary for any purpose pertaining to the performance of 
     functions and responsibilities under this section;
       ``(8) select, appoint, and employ such officers and 
     employees as may be necessary for carrying out the functions, 
     powers, and duties of the Office subject to the provisions of 
     title 5, United States Code, governing appointments in the 
     competitive service, and the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates;
       ``(9) obtain services as authorized by section 3109 of 
     title 5, United States Code, at daily rates not to exceed the 
     equivalent rate prescribed for the rate of basic pay for a 
     position at level IV of the Executive Schedule; and
       ``(10) to the extent and in such amounts as may be provided 
     in advance by appropriations Acts, enter into contracts and 
     other arrangements for audits, studies, analyses, and other 
     services with public agencies and with private persons, and 
     to make such payments as may be necessary to carry out the 
     provisions of this section.
       ``(d) Additional Duties of the NFIA.--The National Flood 
     Insurance Advocate shall--
       ``(1) monitor the coverage and geographic allocation of 
     regional offices of flood insurance advocates;
       ``(2) develop guidance to be distributed to all Federal 
     Emergency Management Agency officers and employees having 
     duties with respect to the national flood insurance program, 
     outlining the criteria for referral of inquiries by insureds 
     under such program to regional offices of flood insurance 
     advocates;
       ``(3) ensure that the local telephone number for each 
     regional office of the flood insurance advocate is published 
     and available to such insureds served by the office; and
       ``(4) establish temporary State or local offices where 
     necessary to meet the needs of qualified insureds following a 
     flood event.
       ``(e) Other Responsibilities.--
       ``(1) Additional requirements relating to certain audits.--
     Prior to conducting any audit or investigation relating to 
     the allocation of flood losses under subsection (b)(5)(A), 
     the National Flood Insurance Advocate shall--
       ``(A) consult with appropriate subject-matter experts to 
     identify the data necessary to determine whether flood claims 
     paid by insurance companies or associated entities on behalf 
     the national flood insurance program reflect damages caused 
     by flooding;
       ``(B) collect or compile the data identified in 
     subparagraph (A), utilizing existing data sources to the 
     maximum extent practicable; and
       ``(C) establish policies, procedures, and guidelines for 
     application of such data in all audits and investigations 
     authorized under this section.
       ``(2) Annual reports.--
       ``(A) Activities.--Not later than December 31 of each 
     calendar year, the National Flood Insurance Advocate shall 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the activities of the 
     Office of the Flood Insurance Advocate during the fiscal year 
     ending during such calendar year. Any such report shall 
     contain a full and substantive analysis of such activities, 
     in addition to statistical information, and shall--
       ``(i) identify the initiatives the Office of the Flood 
     Insurance Advocate has taken on improving services for 
     insureds under the national flood insurance program and 
     responsiveness of the Federal Emergency Management Agency 
     with respect to such initiatives;
       ``(ii) describe the nature of recommendations made to the 
     Director under subsection (i);
       ``(iii) contain a summary of the most serious problems 
     encountered by such insureds, including a description of the 
     nature of such problems;
       ``(iv) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action has been taken 
     and the result of such action;
       ``(v) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action remains to be 
     completed and the period during which each item has remained 
     on such inventory;
       ``(vi) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which no action has been 
     taken, the period during which each item has remained on such 
     inventory and the reasons for the inaction;
       ``(vii) identify any Flood Insurance Assistance 
     Recommendation which was not responded to by the Director in 
     a timely manner or was not followed, as specified under 
     subsection (i);
       ``(viii) contain recommendations for such administrative 
     and legislative action as may be appropriate to resolve 
     problems encountered by such insureds;
       ``(ix) identify areas of the law or regulations relating to 
     the national flood insurance program that impose significant 
     compliance burdens on such insureds or the Federal Emergency 
     Management Agency, including specific recommendations for 
     remedying these problems;
       ``(x) identify the most litigated issues for each category 
     of such insureds, including recommendations for mitigating 
     such disputes;
       ``(xi) identify ways to promote the economy, efficiency, 
     and effectiveness in the administration of the national flood 
     insurance program;
       ``(xii) identify fraud and abuse in the national flood 
     insurance program; and
       ``(xiii) include such other information as the National 
     Flood Insurance Advocate may deem advisable.
       ``(B) Direct submission of report.--Each report required 
     under this paragraph shall be provided directly to the 
     committees identified in subparagraph (A) without any prior 
     review or comment from the Director, the Secretary of 
     Homeland Security, or any other officer or employee of the 
     Federal Emergency Management Agency or the Department of 
     Homeland Security, or the Office of Management and Budget.
       ``(3) Information and assistance from other agencies.--

[[Page S3823]]

       ``(A) In general.--Upon request of the National Flood 
     Insurance Advocate for information or assistance under this 
     section, the head of any Federal agency shall, insofar as is 
     practicable and not in contravention of any statutory 
     restriction or regulation of the Federal agency from which 
     the information is requested, furnish to the National Flood 
     Insurance Advocate, or to an authorized designee of the 
     National Flood Insurance Advocate, such information or 
     assistance.
       ``(B) Refusal to comply.--Whenever information or 
     assistance requested under this subsection is, in the 
     judgment of the National Flood Insurance Advocate, 
     unreasonably refused or not provided, the National Flood 
     Insurance Advocate shall report the circumstances to the 
     Director without delay.
       ``(f) Compliance With GAO Standards.--In carrying out the 
     responsibilities established under this section, the National 
     Flood Insurance Advocate shall--
       ``(1) comply with standards established by the Comptroller 
     General of the United States for audits of Federal 
     establishments, organizations, programs, activities, and 
     functions;
       ``(2) establish guidelines for determining when it shall be 
     appropriate to use non-Federal auditors;
       ``(3) take appropriate steps to assure that any work 
     performed by non-Federal auditors complies with the standards 
     established by the Comptroller General as described in 
     paragraph (1); and
       ``(4) take the necessary steps to minimize the publication 
     of proprietary and trade secrets information.
       ``(g) Personnel Actions.--
       ``(1) In general.--The National Flood Insurance Advocate 
     shall have the responsibility and authority to--
       ``(A) appoint regional flood insurance advocates in a 
     manner that will provide appropriate coverage based upon 
     regional flood insurance program participation; and
       ``(B) hire, evaluate, and take personnel actions (including 
     dismissal) with respect to any employee of any regional 
     office of a flood insurance advocate described in 
     subparagraph (A).
       ``(2) Consultation.--The National Flood Insurance Advocate 
     may consult with the appropriate supervisory personnel of the 
     Federal Emergency Management Agency in carrying out the 
     National Flood Insurance Advocate's responsibilities under 
     this subsection.
       ``(h) Operation of Regional Offices.--
       ``(1) In general.--Each regional flood insurance advocate 
     appointed pursuant to subsection (d)--
       ``(A) shall report to the National Flood Insurance Advocate 
     or delegate thereof;
       ``(B) may consult with the appropriate supervisory 
     personnel of the Federal Emergency Management Agency 
     regarding the daily operation of the regional office of the 
     flood insurance advocate;
       ``(C) shall, at the initial meeting with any insured under 
     the national flood insurance program seeking the assistance 
     of a regional office of the flood insurance advocate, notify 
     such insured that the flood insurance advocate offices 
     operate independently of any other Federal Emergency 
     Management Agency office and report directly to Congress 
     through the National Flood Insurance Advocate; and
       ``(D) may, at the flood insurance advocate's discretion, 
     not disclose to the Director contact with, or information 
     provided by, such insured.
       ``(2) Maintenance of independent communications.--Each 
     regional office of the flood insurance advocate shall 
     maintain a separate phone, facsimile, and other electronic 
     communication access.
       ``(i) Flood Insurance Assistance Recommendations.--
       ``(1) Authority to issue.--Upon application filed by a 
     qualified insured with the Office of the Flood Insurance 
     Advocate (in such form, manner, and at such time as the 
     Director shall by regulation prescribe), the National Flood 
     Insurance Advocate may issue a Flood Insurance Assistance 
     Recommendation, if the Advocate finds that the qualified 
     insured is suffering a significant hardship, such as a 
     significant delay in resolving claims where the insured is 
     incurring significant costs as a result of such delay, or 
     where the insured is at risk of adverse action, including the 
     loss of property, as a result of the manner in which the 
     flood insurance laws are being administered by the Director.
       ``(2) Terms of a flood insurance assistance 
     recommendation.--The terms of a Flood Insurance Assistance 
     Recommendation may recommend to the Director that the 
     Director, within a specified time period, cease any action, 
     take any action as permitted by law, or refrain from taking 
     any action, including the payment of claims, with respect to 
     the qualified insured under any other provision of law which 
     is specifically described by the National Flood Insurance 
     Advocate in such recommendation.
       ``(3) Director response.--Not later than 15 days after the 
     receipt of any Flood Insurance Assistance Recommendation 
     under this subsection, the Director shall respond in writing 
     as to--
       ``(A) whether such recommendation was followed;
       ``(B) why such recommendation was or was not followed; and
       ``(C) what, if any, additional actions were taken by the 
     Director to prevent the hardship indicated in such 
     recommendation.
       ``(4) Responsibilities of director.--The Director shall 
     establish procedures requiring a formal response consistent 
     with the requirements of paragraph (3) to all recommendations 
     submitted to the Director by the National Flood Insurance 
     Advocate under this subsection.
       ``(j) Reporting of Potential Criminal Violations.--In 
     carrying out the duties and responsibilities established 
     under this section, the National Flood Insurance Advocate 
     shall report expeditiously to the Attorney General whenever 
     the National Flood Insurance Advocate has reasonable grounds 
     to believe there has been a violation of Federal criminal 
     law.
       ``(k) Coordination.--
       ``(1) With other federal agencies.--In carrying out the 
     duties and responsibilities established under this section, 
     the National Flood Insurance Advocate--
       ``(A) shall give particular regard to the activities of the 
     Inspector General of the Department of Homeland Security with 
     a view toward avoiding duplication and insuring effective 
     coordination and cooperation; and
       ``(B) may participate, upon request of the Inspector 
     General of the Department of Homeland Security, in any audit 
     or investigation conducted by the Inspector General.
       ``(2) With state regulators.--In carrying out any 
     investigation or audit under this section, the National Flood 
     Insurance Advocate shall coordinate its activities and 
     efforts with any State insurance authority that is 
     concurrently undertaking a similar or related investigation 
     or audit.
       ``(3) Avoidance of redundancies in the resolution of 
     problems.--In providing any assistance to a policyholder 
     pursuant to paragraphs (1) and (2) of subsection (b), the 
     National Flood Insurance Advocate shall consult with the 
     Director to eliminate, avoid, or reduce any redundancies in 
     actions that may arise as a result of the actions of the 
     National Flood Insurance Advocate and the claims appeals 
     process described under section 62.20 of title 44, Code of 
     Federal Regulations.
       ``(l) Authority of the Director to Levy Penalties.--In 
     addition to any other action that may be taken by the 
     Attorney General, upon a finding in any investigation or 
     audit conducted by the Office of the National Flood Insurance 
     Advocate under this section, that any insurance company or 
     associated entity has willfully misappropriated funds under 
     the national flood insurance program, the Director may levy a 
     civil fine against such company or entity in an amount not to 
     exceed 3 times the total amount of funds shown to be 
     misappropriated.
       ``(m) Definitions.--For purposes of this subsection:
       ``(1) Associated entity.--The term `associated entity' 
     means any person, corporation, or other legal entity that 
     contracts with the Director or an insurance company to 
     provide adjustment services, benefits calculation services, 
     claims services, processing services, or record keeping 
     services in connection with standard flood insurance policies 
     made available under the national flood insurance program.
       ``(2) Insurance company.--The term `insurance company' 
     refers to any property and casualty insurance company that is 
     authorized by the Director to participate in the Write Your 
     Own program under the national flood insurance program.
       ``(3) National flood insurance advocate.--The term 
     `National Flood Insurance Advocate' includes any designee of 
     the National Flood Insurance Advocate.
       ``(4) Qualified insured.--The term `qualified insured' 
     means an insured under coverage provided under the national 
     flood insurance program under this title.
       ``(n) Funding.--Pursuant to section 1310(a)(8), the 
     Director may use amounts from the National Flood Insurance 
     Fund to fund the activities of the Office of the Flood 
     Advocate in each of fiscal years 2009 through 2014, except 
     that the amount so used in each such fiscal year may not 
     exceed $5,000,000 and shall remain available until expended. 
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this subsection shall not be 
     subject to offsetting collections through premium rates for 
     flood insurance coverage under this title.''.
                                 ______
                                 
  SA 4707. Mr. DODD (for himself and Mr. Shelby) submitted an amendment 
intended to be proposed by him to the bill S. 2284, to amend the 
National Flood Insurance Act of 1968, to restore the financial solvency 
of the flood insurance fund, and for other purposes; which was ordered 
to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.

[[Page S3824]]

Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood 
              Insurance Program.
Sec. 114. Considerations in determining chargeable premium rates.
Sec. 115. Reserve fund.
Sec. 116. Repayment plan for borrowing authority.
Sec. 117. Payment of condominium claims.
Sec. 118. Technical Mapping Advisory Council.
Sec. 119. National Flood Mapping Program.
Sec. 120. Removal of limitation on State contributions for updating 
              flood maps.
Sec. 121. Coordination.
Sec. 122. Interagency coordination study.
Sec. 123. Nonmandatory participation.
Sec. 124. Notice of flood insurance availability under RESPA.
Sec. 125. Testing of new floodproofing technologies.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform 
              Act.
Sec. 128. Additional authority of FEMA to collect information on claims 
              payments.
Sec. 129. Expense reimbursements of insurance companies.
Sec. 130. Extension of pilot program for mitigation of severe 
              repetitive loss properties.
Sec. 131. Flood insurance advocate.
Sec. 132. Studies and Reports.

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

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

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Flood Insurance Reform and 
     Modernization Act of 2008''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) the flood insurance claims resulting from the hurricane 
     season of 2005 will likely exceed all previous claims paid by 
     the National Flood Insurance Program;
       (2) in order to pay the legitimate claims of policyholders 
     from the hurricane season of 2005, the Federal Emergency 
     Management Agency has borrowed over $20,000,000,000 from the 
     Treasury;
       (3) the interest alone on this debt, is almost 
     $1,000,000,000 annually, and that the Federal Emergency 
     Management Agency has indicated that it will be unable to pay 
     back this debt;
       (4) the flood insurance program must be strengthened to 
     ensure it can pay future claims;
       (5) while flood insurance is mandatory in the 100-year 
     floodplain, substantial flooding occurs outside of existing 
     special flood hazard areas;
       (6) recent events throughout the country involving areas 
     behind man-made structures, known as ``residual risk'' areas, 
     have produced catastrophic losses;
       (7) although such man-made structures produce an added 
     element of safety and therefore lessen the probability that a 
     disaster will occur, they are nevertheless susceptible to 
     catastrophic loss, even though such areas at one time were 
     not included within the 100-year floodplain; and
       (8) voluntary participation in the National Flood Insurance 
     Program has been minimal and many families residing outside 
     the 100-year floodplain remain unaware of the potential risk 
     to their lives and property.

     SEC. 103. DEFINITIONS.

       (a) In General.--In this title, the following definitions 
     shall apply:
       (1) Director.--The term ``Director'' means the 
     Administrator of the Federal Emergency Management Agency.
       (2) National flood insurance program.--The term ``National 
     Flood Insurance Program'' means the program established under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.).
       (3) 100-year floodplain.--The term ``100-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 1 percent chance of being equaled or exceeded in any 
     given year.
       (4) 500-year floodplain.--The term ``500-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 0.2 percent chance of being equaled or exceeded in 
     any given year.
       (5) Write your own.--The term ``Write Your Own'' means the 
     cooperative undertaking between the insurance industry and 
     the Flood Insurance Administration which allows participating 
     property and casualty insurance companies to write and 
     service standard flood insurance policies.
       (b) Common Terminology.--Except as otherwise provided in 
     this title, any terms used in this title shall have the 
     meaning given to such terms under section 1370 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4121).

     SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       Section 1319 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4026), is amended by striking ``2008'' and 
     inserting ``2013.''.

     SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 
                   PROPERTIES.

       Section 1305 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012) is amended by adding at the end the 
     following:
       ``(d) Availability of Insurance for Multifamily 
     Properties.--
       ``(1) In general.--The Director shall make flood insurance 
     available to cover residential properties of more than 4 
     units. Notwithstanding any other provision of law, the 
     maximum coverage amount that the Director may make available 
     under this subsection to such residential properties shall be 
     equal to the coverage amount made available to commercial 
     properties.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to limit the ability of individuals 
     residing in residential properties of more than 4 units to 
     obtain insurance for the contents and personal articles 
     located in such residences.''.

     SEC. 106. REFORM OF PREMIUM RATE STRUCTURE.

       (a) To Exclude Certain Properties From Receiving Subsidized 
     Premium Rates.--
       (1) In general.--Section 1307 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4014) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(4) the exclusion of prospective insureds from purchasing 
     flood insurance at rates less than those estimated under 
     paragraph (1), as required by paragraph (2), for certain 
     properties, including for--
       ``(A) any property which is not the primary residence of an 
     individual;
       ``(B) any severe repetitive loss property, as defined in 
     section 1361A(b);
       ``(C) any property that has incurred flood-related damage 
     in which the cumulative amounts of payments under this title 
     equaled or exceeded the fair market value of such property;
       ``(D) any business property; and
       ``(E) any property which on or after the date of enactment 
     of the Flood Insurance Reform and Modernization Act of 2008 
     has experienced or sustained--
       ``(i) substantial damage exceeding 50 percent of the fair 
     market value of such property; or
       ``(ii) substantial improvement exceeding 30 percent of the 
     fair market value of such property.''; and
       (B) by adding at the end the following:
       ``(g) No Extension of Subsidy to New Policies or Lapsed 
     Policies.--The Director shall not provide flood insurance to 
     prospective insureds at rates less than those estimated under 
     subsection (a)(1), as required by paragraph (2) of that 
     subsection, for--
       ``(1) any property not insured by the flood insurance 
     program as of the date of enactment of the Flood Insurance 
     Reform and Modernization Act of 2008; and
       ``(2) any policy under the flood insurance program that has 
     lapsed in coverage, as a result of the deliberate choice of 
     the holder of such policy.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall become effective 90 days after the date of the 
     enactment of this title.
       (b) Increase in Annual Limitation on Premium Increases.--
     Section 1308(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended--
       (1) by striking ``under this title for any properties 
     within any single'' and inserting the following: ``under this 
     title for any properties--
       ``(1) within any single''; and
       (2) by striking ``10 percent'' and inserting ``15 
     percent''; and
       (3) by striking the period at the end and inserting the 
     following: ``; and
       ``(2) described in section 1307(a)(4) shall be increased by 
     25 percent each year, until the average risk premium rate for 
     such properties is equal to the average of the risk premium 
     rates for properties described under paragraph (1).''.

     SEC. 107. MANDATORY COVERAGE AREAS.

       (a) Special Flood Hazard Areas.--Not later than 90 days 
     after the date of enactment of this title, the Director shall 
     issue final regulations establishing a revised definition of 
     areas of special flood hazards for purposes of the National 
     Flood Insurance Program.
       (b) Residual Risk Areas.--The regulations required by 
     subsection (a) shall--
       (1) include any area previously identified by the Director 
     as an area having special flood hazards under section 102 of 
     the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); 
     and
       (2) require the expansion of areas of special flood hazards 
     to include areas of residual risk, including areas that are 
     located behind levees, dams, and other man-made structures.
       (c) Mandatory Participation in National Flood Insurance 
     Program.--
       (1) In general.--Any area described in subsection (b) shall 
     be subject to the mandatory purchase requirements of sections 
     102 and 202 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a, 4106).

[[Page S3825]]

       (2) Limitation.--The mandatory purchase requirement under 
     paragraph (1) shall have no force or effect until the mapping 
     of all residual risk areas in the United States that the 
     Director determines essential in order to administer the 
     National Flood Insurance Program, as required under section 
     119, are in the maintenance phase.

     SEC. 108. PREMIUM ADJUSTMENT.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015) is amended by adding at the end the 
     following:
       ``(g) Premium Adjustment To Reflect Current Risk of 
     Flood.--Notwithstanding subsection (f), and upon completion 
     of the updating of any flood insurance rate map under this 
     Act, the Flood Disaster Protection Act of 1973, or the Flood 
     Insurance Reform and Modernization Act of 2008, any property 
     located in an area that is participating in the national 
     flood insurance program shall have the risk premium rate 
     charged for flood insurance on such property adjusted to 
     accurately reflect the current risk of flood to such 
     property, subject to any other provision of this Act. Any 
     increase in the risk premium rate charged for flood insurance 
     on any property that is covered by a flood insurance policy 
     on the date of completion of such updating or remapping that 
     is a result of such updating or remapping shall be phased in 
     over a 2-year period at the rate of 50 percent per year.''.

     SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

       Section 1305(c) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012(c)) is amended--
       (1) in paragraph (1), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) given satisfactory assurance that by December 31, 
     2008, lending institutions chartered by a State, and not 
     insured by the Federal Deposit Insurance Corporation, shall 
     be subject to regulations by that State that are consistent 
     with the requirements of section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a).''.

     SEC. 110. ENFORCEMENT.

       Section 102(f)(5) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(f)(5)) is amended--
       (1) in the first sentence, by striking ``$350'' and 
     inserting ``$2,000''; and
       (2) by striking the second sentence.

     SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS.

       (a) In General.--Section 102(d) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Regulated lending institutions.--
       ``(A) Federal entities responsible for lending 
     regulations.--Each Federal entity for lending regulation 
     (after consultation and coordination with the Federal 
     Financial Institutions Examination Council) shall, by 
     regulation, direct that any premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968, on 
     any property for which a loan has been made for acquisition 
     or construction purposes, shall be paid to the mortgage 
     lender, with the same frequency as payments on the loan are 
     made, for the duration of the loan. Upon receipt of any 
     premiums or fees, the lender shall deposit such premiums and 
     fees in an escrow account on behalf of the borrower. Upon 
     receipt of a notice from the Director or the provider of the 
     flood insurance that insurance premiums are due, the 
     remaining balance of an escrow account shall be paid to the 
     provider of the flood insurance.
       ``(B) State entities responsible for lending regulations.--
     In order to continue to participate in the flood insurance 
     program, each State shall direct that its entity or agency 
     with primary responsibility for the supervision of lending 
     institutions in that State require that premiums and fees for 
     flood insurance under the National Flood Insurance Act of 
     1968, on any property for which a loan has been made for 
     acquisition or construction purposes shall be paid to the 
     mortgage lender, with the same frequency as payments on the 
     loan are made, for the duration of the loan. Upon receipt of 
     any premiums or fees, the lender shall deposit such premiums 
     and fees in an escrow account on behalf of the borrower. Upon 
     receipt of a notice from such State entity or agency, the 
     Director, or the provider of the flood insurance that 
     insurance premiums are due, the remaining balance of an 
     escrow account shall be paid to the provider of the flood 
     insurance.''; and
       (2) by adding at the end the following:
       ``(6) Notice upon loan termination.--Upon final payment of 
     the mortgage, a regulated lending institution shall provide 
     notice to the policyholder that insurance coverage may cease 
     with such final payment. The regulated lending institution 
     shall also provide direction as to how the homeowner may 
     continue flood insurance coverage after the life of the 
     loan.''.
       (b) Applicability.--The amendment made by subsection (a)(1) 
     shall apply to any mortgage outstanding or entered into on or 
     after the expiration of the 2-year period beginning on the 
     date of enactment of this title.

     SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS.

       (a) In General.--The Secretary of the Treasury relinquishes 
     the right to any repayment of amounts due from the Director 
     in connection with the exercise of the authority vested to 
     the Director to borrow such sums under section 1309 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4016), to the 
     extent such borrowed sums were used to fund the payment of 
     flood insurance claims under the National Flood Insurance 
     Program for any damage to or loss of property resulting from 
     the hurricanes of 2005.
       (b) Certification.--The debt forgiveness described under 
     subsection (a) shall only take effect if the Director 
     certifies to the Secretary of Treasury that all authorized 
     resources or funds available to the Director to operate the 
     National Flood Insurance Program--
       (1) have been otherwise obligated to pay claims under the 
     National Flood Insurance Program; and
       (2) are not otherwise available to make payments to the 
     Secretary on any outstanding notes or obligations issued by 
     the Director and held by the Secretary.
       (c) Decrease in Borrowing Authority.--The first sentence of 
     subsection (a) of section 1309 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
     striking ``; except that, through September 30, 2008, clause 
     (2) of this sentence shall be applied by substituting 
     `$20,775,000,000' for `$1,500,000,000' ''.

     SEC. 113. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL 
                   FLOOD INSURANCE PROGRAM.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019) is amended--
       (1) by striking ``The Director is'' and inserting the 
     following:
       ``(a) In General.--The Director is''; and
       (2) by adding at the end the following:
       ``(b) Minimum Annual Deductible.--
       ``(1) Pre-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred on or before 
     December 31, 1974, or before the effective date of an initial 
     flood insurance rate map published by the Director under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $1,500, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $2,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.
       ``(2) Post-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred after 
     December 31, 1974, or after the effective date of an initial 
     flood insurance rate map published by the Director under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $750, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $1,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.''.

     SEC. 114. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM 
                   RATES.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(b)) is amended--
       (1) in subsection (a), by striking ``, after consultation 
     with'' and all that follows through ``by regulation'' and 
     inserting ``prescribe, after providing notice'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking the period at the end and 
     inserting a semicolon;
       (B) in paragraph (2), by striking the comma at the end and 
     inserting a semicolon;
       (C) in paragraph (3), by striking ``, and'' and inserting a 
     semicolon;
       (D) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (E) by adding at the end the following:
       ``(5) adequate, on the basis of accepted actuarial 
     principles, to cover the average historical loss year 
     obligations incurred by the National Flood Insurance Fund.''; 
     and
       (3) by adding at the end the following:
       ``(h) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year'--
       ``(1) includes catastrophic loss years; and
       ``(2) shall be computed in accordance with generally 
     accepted actuarial principles.''.

     SEC. 115. RESERVE FUND.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1310 the following:

     ``SEC. 1310A. RESERVE FUND.

       ``(a) Establishment of Reserve Fund.--In carrying out the 
     flood insurance program authorized by this chapter, the 
     Director shall establish in the Treasury of the United States 
     a National Flood Insurance Reserve Fund (in this section 
     referred to as the `Reserve Fund') which shall--
       ``(1) be an account separate from any other accounts or 
     funds available to the Director; and
       ``(2) be available for meeting the expected future 
     obligations of the flood insurance program.
       ``(b) Reserve Ratio.--Subject to the phase-in requirements 
     under subsection (d), the Reserve Fund shall maintain a 
     balance equal to--
       ``(1) 1 percent of the sum of the total potential loss 
     exposure of all outstanding flood insurance policies in force 
     in the prior fiscal year; or

[[Page S3826]]

       ``(2) such higher percentage as the Director determines to 
     be appropriate, taking into consideration any circumstance 
     that may raise a significant risk of substantial future 
     losses to the Reserve Fund.
       ``(c) Maintenance of Reserve Ratio.--
       ``(1) In general.--The Director shall have the authority to 
     establish, increase, or decrease the amount of aggregate 
     annual insurance premiums to be collected for any fiscal year 
     necessary--
       ``(A) to maintain the reserve ratio required under 
     subsection (b); and
       ``(B) to achieve such reserve ratio, if the actual balance 
     of such reserve is below the amount required under subsection 
     (b).
       ``(2) Considerations.--In exercising the authority granted 
     under paragraph (1), the Director shall consider--
       ``(A) the expected operating expenses of the Reserve Fund;
       ``(B) the insurance loss expenditures under the flood 
     insurance program;
       ``(C) any investment income generated under the flood 
     insurance program; and
       ``(D) any other factor that the Director determines 
     appropriate.
       ``(3) Limitations.--In exercising the authority granted 
     under paragraph (1), the Director shall be subject to all 
     other provisions of this Act, including any provisions 
     relating to chargeable premium rates or annual increases of 
     such rates.
       ``(d) Phase-In Requirements.--The phase-in requirements 
     under this subsection are as follows:
       ``(1) In general.--Beginning in fiscal year 2008 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved, in each such fiscal year 
     the Director shall place in the Reserve Fund an amount equal 
     to not less than 7.5 percent of the reserve ratio required 
     under subsection (b).
       ``(2) Amount satisfied.--As soon as the ratio required 
     under subsection (b) is achieved, and except as provided in 
     paragraph (3), the Director shall not be required to set 
     aside any amounts for the Reserve Fund.
       ``(3) Exception.--If at any time after the ratio required 
     under subsection (b) is achieved, the Reserve Fund falls 
     below the required ratio under subsection (b), the Director 
     shall place in the Reserve Fund for that fiscal year an 
     amount equal to not less than 7.5 percent of the reserve 
     ratio required under subsection (b).
       ``(e) Limitation on Reserve Ratio.--In any given fiscal 
     year, if the Director determines that the reserve ratio 
     required under subsection (b) cannot be achieved, the 
     Director shall submit a report to Congress that--
       ``(1) describes and details the specific concerns of the 
     Director regarding such consequences;
       ``(2) demonstrates how such consequences would harm the 
     long-term financial soundness of the flood insurance program; 
     and
       ``(3) indicates the maximum attainable reserve ratio for 
     that particular fiscal year.''.

     SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY.

       Section 1309 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4016) is amended by adding at the end the 
     following:
       ``(c) Any funds borrowed by the Director under the 
     authority established in subsection (a) shall include a 
     schedule for repayment of such amounts which shall be 
     transmitted to the--
       ``(1) Secretary of the Treasury;
       ``(2) Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       ``(3) Committee on Financial Services of the House of 
     Representatives.
       ``(d) In addition to the requirement under subsection (c), 
     in connection with any funds borrowed by the Director under 
     the authority established in subsection (a), the Director, 
     beginning 6 months after the date on which such borrowed 
     funds are issued, and continuing every 6 months thereafter 
     until such borrowed funds are fully repaid, shall submit a 
     report on the progress of such repayment to the--
       ``(1) Secretary of the Treasury;
       ``(2) Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       ``(3) Committee on Financial Services of the House of 
     Representatives.''.

     SEC. 117. PAYMENT OF CONDOMINIUM CLAIMS.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019), as amended by section 113, is further 
     amended by adding at the end the following:
       ``(c) Payment of Claims to Condominium Owners.--The 
     Director may not deny payment for any damage to or loss of 
     property which is covered by flood insurance to condominium 
     owners who purchased such flood insurance separate and apart 
     from the flood insurance purchased by the condominium 
     association in which such owner is a member, based, solely or 
     in any part, on the flood insurance coverage of the 
     condominium association or others on the overall property 
     owned by the condominium association. Notwithstanding any 
     regulations, rules, or restrictions established by the 
     Director relating to appeals and filing deadlines, the 
     Director shall ensure that the requirements of this 
     subsection are met with respect to any claims for damages 
     resulting from flooding in 2005 and 2006.''.

     SEC. 118. TECHNICAL MAPPING ADVISORY COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (in this 
     section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of the Director, 
     or the designee thereof, and 12 additional members to be 
     appointed by the Director or the designee of the Director, 
     who shall be--
       (A) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or the designee thereof);
       (B) a member of a recognized professional surveying 
     association or organization
       (C) a member of a recognized professional mapping 
     association or organization;
       (D) a member of a recognized professional engineering 
     association or organization;
       (E) a member of a recognized professional association or 
     organization representing flood hazard determination firms;
       (F) a representative of the United States Geological 
     Survey;
       (G) a representative of a recognized professional 
     association or organization representing State geographic 
     information;
       (H) a representative of State national flood insurance 
     coordination offices;
       (I) a representative of the Corps of Engineers;
       (J) the Secretary of the Interior (or the designee 
     thereof);
       (K) the Secretary of Agriculture (or the designee thereof); 
     and
       (L) a member of a recognized regional flood and storm water 
     management organization.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps.
       (c) Duties.--The Council shall--
       (1) recommend to the Director how to improve in a cost-
     effective manner the--
       (A) accuracy, general quality, ease of use, and 
     distribution and dissemination of flood insurance rate maps 
     and risk data; and
       (B) performance metrics and milestones required to 
     effectively and efficiently map flood risk areas in the 
     United States;
       (2) recommend to the Director mapping standards and 
     guidelines for--
       (A) flood insurance rate maps; and
       (B)  data accuracy, data quality, data currency, and data 
     eligibility;
       (3) recommend to the Director how to maintain on an ongoing 
     basis flood insurance rate maps and flood risk 
     identification;
       (4) recommend procedures for delegating mapping activities 
     to State and local mapping partners;
       (5) recommend to the Director and other Federal agencies 
     participating in the Council--
       (A) methods for improving interagency and intergovernmental 
     coordination on flood mapping and flood risk determination; 
     and
       (B) a funding strategy to leverage and coordinate budgets 
     and expenditures across Federal agencies; and
       (6) submit an annual report to the Director that contains--
       (A) a description of the activities of the Council;
       (B) an evaluation of the status and performance of flood 
     insurance rate maps and mapping activities to revise and 
     update flood insurance rate maps, as required under section 
     119; and
       (C) a summary of recommendations made by the Council to the 
     Director.
       (d) Future Conditions Risk Assessment and Modeling 
     Report.--
       (1) In general.--The Council shall consult with scientists 
     and technical experts, other Federal agencies, States, and 
     local communities to--
       (A) develop recommendations on how to--
       (i) ensure that flood insurance rate maps incorporate the 
     best available climate science to assess flood risks; and
       (ii) ensure that the Federal Emergency Management Agency 
     uses the best available methodology to consider the impact 
     of--

       (I) the rise in the sea level; and
       (II) future development on flood risk; and

       (B) not later than 1 year after the date of enactment of 
     this title, prepare written recommendations in a future 
     conditions risk assessment and modeling report and to submit 
     such recommendations to the Director.
       (2) Responsibility of the director.--The Director, as part 
     of the ongoing program to review and update National Flood 
     Insurance Program rate maps under section 119, shall 
     incorporate any future risk assessment submitted under 
     paragraph (1)(B) in any such revision or update.
       (e) Chairperson.--The members of the Council shall elect 1 
     member to serve as the chairperson of the Council (in this 
     section referred to as the ``Chairperson'').
       (f) Coordination.--To ensure that the Council's 
     recommendations are consistent, to the maximum extent 
     practicable, with national digital spatial data collection 
     and management standards, the Chairperson shall consult with 
     the Chairperson of the Federal Geographic Data Committee 
     (established pursuant to OMB Circular A-16).
       (g) Compensation.--Members of the Council shall receive no 
     additional compensation by reason of their service on the 
     Council.
       (h) Meetings and Actions.--
       (1) In general.--The Council shall meet not less frequently 
     than twice each year at the request of the Chairperson or a 
     majority of its members, and may take action by a vote of the 
     majority of the members.

[[Page S3827]]

       (2) Initial meeting.--The Director, or a person designated 
     by the Director, shall request and coordinate the initial 
     meeting of the Council.
       (i) Officers.--The Chairperson may appoint officers to 
     assist in carrying out the duties of the Council under 
     subsection (c).
       (j) Staff.--
       (1) Staff of fema.--Upon the request of the Chairperson, 
     the Director may detail, on a nonreimbursable basis, 
     personnel of the Federal Emergency Management Agency to 
     assist the Council in carrying out its duties.
       (2) Staff of other federal agencies.--Upon request of the 
     Chairperson, any other Federal agency that is a member of the 
     Council may detail, on a non-reimbursable basis, personnel to 
     assist the Council in carrying out its duties.
       (k) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research, as it considers 
     appropriate.
       (l) Report to Congress.--The Director, on an annual basis, 
     shall report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Financial Services of 
     the House of Representatives, and the Office of Management 
     and Budget on the--
       (1) recommendations made by the Council; and
       (2) actions taken by the Federal Emergency Management 
     Agency to address such recommendations to improve flood 
     insurance rate maps and flood risk data.

     SEC. 119. NATIONAL FLOOD MAPPING PROGRAM.

       (a) Reviewing, Updating, and Maintaining Maps.--The 
     Director, in coordination with the Technical Mapping Advisory 
     Council established under section 118, shall establish an 
     ongoing program under which the Director shall review, 
     update, and maintain National Flood Insurance Program rate 
     maps in accordance with this section.
       (b) Mapping.--
       (1) In general.--In carrying out the program established 
     under subsection (a), the Director shall--
       (A) identify, review, update, maintain, and publish 
     National Flood Insurance Program rate maps with respect to--
       (i) all areas located within the 100-year floodplain;
       (ii) all areas located within the 500-year floodplain;
       (iii) areas of residual risk that have not previously been 
     identified, including areas that are protected levees, dams, 
     and other man-made structures; and
       (iv) areas that could be inundated as a result of the 
     failure of a levee, dam, or other man-made structure;
       (B) establish or update flood-risk zone data in all such 
     areas, and make estimates with respect to the rates of 
     probable flood caused loss for the various flood risk zones 
     for each such area; and
       (C) use, in identifying, reviewing, updating, maintaining, 
     or publishing any National Flood Insurance Program rate map 
     required under this section or under the National Flood 
     Insurance Act of 1968, the most accurate topography and 
     elevation data available.
       (2) Mapping elements.--Each map updated under this section 
     shall:
       (A) Ground elevation data.--Assess the accuracy of current 
     ground elevation data used for hydrologic and hydraulic 
     modeling of flooding sources and mapping of the flood hazard 
     and wherever necessary acquire new ground elevation data 
     utilizing the most up-to-date geospatial technologies in 
     accordance with the existing guidelines and specifications of 
     the Federal Emergency Management Agency.
       (B) Data on a watershed basis.--Develop National Flood 
     Insurance Program flood data on a watershed basis--
       (i) to provide the most technically effective and efficient 
     studies and hydrologic and hydraulic modeling; and
       (ii) to eliminate, to the maximum extent possible, 
     discrepancies in base flood elevations between adjacent 
     political subdivisions.
       (3) Other inclusions.--In updating maps under this section, 
     the Director shall include--
       (A) any relevant information on coastal inundation from--
       (i) an applicable inundation map of the Corps of Engineers; 
     and
       (ii) data of the National Oceanic and Atmospheric 
     Administration relating to storm surge modeling;
       (B) any relevant information of the United States 
     Geological Survey on stream flows, watershed characteristics, 
     and topography that is useful in the identification of flood 
     hazard areas, as determined by the Director;
       (C) any relevant information on land subsidence, coastal 
     erosion areas, and other floor-related hazards;
       (D) any relevant information or data of the National 
     Oceanic and Atmospheric Administration and the United States 
     Geological Survey relating to the best available climate 
     science and the potential for future inundation from sea 
     level rise, increased precipitation, and increased intensity 
     of hurricanes due to global warming; and
       (E) any other relevant information as may be recommended by 
     the Technical Mapping Advisory Committee.
       (c) Standards.--In updating and maintaining maps under this 
     section, the Director shall--
       (1) establish standards to--
       (A) ensure that maps are adequate for--
       (i) flood risk determinations; and
       (ii) use by State and local governments in managing 
     development to reduce the risk of flooding; and
       (B) facilitate identification and use of consistent methods 
     of data collection and analysis by the Director, in 
     conjunction with State and local governments, in developing 
     maps for communities with similar flood risks, as determined 
     by the Director; and
       (2) publish maps in a format that is--
       (A) digital geospatial data compliant;
       (B) compliant with the open publishing and data exchange 
     standards established by the Open Geospatial Consortium; and
       (C) compliant with the North American Vertical Datum of 
     1998 for New Hydrologic and Hydraulic Engineering.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Director to carry out this section 
     $400,000,000 for each of fiscal years 2008 through 2013.

     SEC. 120. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR 
                   UPDATING FLOOD MAPS.

       Section 1360(f)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4101(f)(2)) is amended by striking ``, but 
     which may not exceed 50 percent of the cost of carrying out 
     the requested revision or update''.

     SEC. 121. COORDINATION.

       (a) Interagency Budget Crosscut Report.--
       (1) In general.--The Secretary of Homeland Security, the 
     Director, the Director of the Office of Management and 
     Budget, and the heads of each Federal department or agency 
     carrying out activities under sections 118 and 119 shall work 
     together to ensure that flood risk determination data and 
     geospatial data are shared among Federal agencies in order to 
     coordinate the efforts of the Nation to reduce its 
     vulnerability to flooding hazards.
       (2) Report.--Not later than 30 days after the submission of 
     the budget of the United States Government by the President 
     to Congress, the Director of the Office of Management and 
     Budget, in coordination with the Federal Emergency Management 
     Agency, the United States Geological Survey, the National 
     Oceanic and Atmospheric Administration, the Corps of 
     Engineers, and other Federal agencies, as appropriate, shall 
     submit to the appropriate authorizing and appropriating 
     committees of the Senate and the House of Representatives a 
     financial report, certified by the Secretary or head of each 
     such agency, an interagency budget crosscut report that 
     displays the budget proposed for each of the Federal agencies 
     working on flood risk determination data and digital 
     elevation models, including any planned interagency or 
     intraagency transfers.
       (b) Duties of the Director.--In carrying out sections 118 
     and 119, the Director shall--
       (1) participate, pursuant to section 216 of Public Law 107-
     347 (116 Stat. 2945), in the establishment of such standards 
     and common protocols as are necessary to assure the 
     interoperability of geospatial data for all users of such 
     information;
       (2) coordinate with, seek assistance and cooperation of, 
     and provide liaison to the Federal Geographic Data Committee 
     pursuant to Office of Management and Budget Circular A-16 and 
     Executive Order 12906 for the implementation of and 
     compliance with such standards;
       (3) integrate with, leverage, and coordinate funding of, to 
     the maximum extent practicable, the current flood mapping 
     activities of each unit of State and local government;
       (4) integrate with, leverage, and coordinate, to the 
     maximum extent practicable, the current geospatial activities 
     of other Federal agencies and units of State and local 
     government; and
       (5) develop a funding strategy to leverage and coordinate 
     budgets and expenditures, and to establish joint funding 
     mechanisms with other Federal agencies and units of State and 
     local government to share the collection and utilization of 
     geospatial data among all governmental users.

     SEC. 122. INTERAGENCY COORDINATION STUDY.

       (a) In General.--The Director shall enter into a contract 
     with the National Academy of Public Administration to conduct 
     a study on how the Federal Emergency Management Agency--
       (1) should improve interagency and intergovernmental 
     coordination on flood mapping, including a funding strategy 
     to leverage and coordinate budgets and expenditures; and
       (2) can establish joint funding mechanisms with other 
     Federal agencies and units of State and local government to 
     share the collection and utilization of data among all 
     governmental users.
       (b) Timing.--Not later than 180 days after the date of 
     enactment of this title, the National Academy of Public 
     Administration shall report the findings of the study 
     required under subsection (a) to the--
       (1) Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (2) Committee on Financial Services of the House of 
     Representatives;
       (3) Committee on Appropriations of the Senate; and
       (4) Committee on Appropriations of the House of 
     Representatives.

     SEC. 123. NONMANDATORY PARTICIPATION.

       (a) Nonmandatory Participation in National Flood Insurance 
     Program for 500-Year Floodplain.--Any area located within the 
     500-year floodplain shall not be subject to the mandatory 
     purchase requirements of sections 102 or 202 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).

[[Page S3828]]

       (b) Notice.--
       (1) By director.--In carrying out the National Flood 
     Insurance Program, the Director shall provide notice to any 
     community located in an area within the 500-year floodplain.
       (2) Timing of notice.--The notice required under paragraph 
     (1) shall be made not later than 6 months after the date of 
     completion of the initial mapping of the 500-year floodplain, 
     as required under section 118.
       (3) Lender required notice.--
       (A) Regulated lending institutions.--Each Federal or State 
     entity for lending regulation (after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council) shall, by regulation, require regulated 
     lending institutions, as a condition of making, increasing, 
     extending, or renewing any loan secured by property located 
     in an area within the 500-year floodplain, to notify the 
     purchaser or lessee (or obtain satisfactory assurances that 
     the seller or lessor has notified the purchaser or lessee) 
     and the servicer of the loan that such property is located in 
     an area within the 500-year floodplain, in a manner that is 
     consistent with and substantially identical to the notice 
     required under section 1364(a)(1) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104a(a)(1)).
       (B) Federal or state agency lenders.--Each Federal or State 
     agency lender shall, by regulation, require notification in 
     the same manner as provided under subparagraph (A) with 
     respect to any loan that is made by a Federal or State agency 
     lender and secured by property located in an area within the 
     500-year floodplain.
       (C) Penalty for noncompliance.--Any regulated lending 
     institution or Federal or State agency lender that fails to 
     comply with the notice requirements established by this 
     paragraph shall be subject to the penalties prescribed under 
     section 102(f)(5) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(f)(5)).

     SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

       Section 5(b) of the Real Estate Settlement Procedures Act 
     of 1974 (12 U.S.C. 2604(b)) is amended--
       (1) in paragraph (4), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) an explanation of flood insurance and the 
     availability of flood insurance under the National Flood 
     Insurance Program, whether or not the real estate is located 
     in an area having special flood hazards.''.

     SEC. 125. TESTING OF NEW FLOODPROOFING TECHNOLOGIES.

       (a) Permissible Testing.--A temporary residential structure 
     built for the purpose of testing a new flood proofing 
     technology, as described in subsection (b), in any State or 
     community that receives mitigation assistance under section 
     1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104c) may not be construed to be in violation of any flood 
     risk mitigation plan developed by that State or community and 
     approved by the Director of the Federal Emergency Management 
     Agency.
       (b) Conditions on Testing.--Testing permitted under 
     subsection (a) shall--
       (1) be performed on an uninhabited residential structure;
       (2) require dismantling of the structure at the conclusion 
     of such testing; and
       (3) require that all costs associated with such testing and 
     dismantling be covered by the individual or entity conducting 
     the testing, or on whose behalf the testing is conducted.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to alter, limit, or extend the availability of 
     flood insurance to any structure that may employ, utilize, or 
     apply any technology tested under subsection (b).

     SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1313 the following:

     ``SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       ``(a) Requirement to Participate.--In the case of the 
     occurrence of a major disaster, as defined in section 102 of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122) that may have resulted in 
     flood damage under the flood insurance program established 
     under this chapter and other personal lines residential 
     property insurance coverage offered by a State regulated 
     insurer, upon request made by the insurance commissioner of a 
     State (or such other official responsible for regulating the 
     business of insurance in the State) for the participation of 
     representatives of the Director in a program sponsored by 
     such State for nonbinding mediation of insurance claims 
     resulting from a major disaster, the Director shall cause 
     representatives of the flood insurance program to participate 
     in such a State program where claims under the flood 
     insurance program are involved to expedite settlement of 
     flood damage claims resulting from such disaster.
       ``(b) Extent of Participation.--In satisfying the 
     requirements of subsection (a), the Director shall require 
     that each representative of the Director--
       ``(1) be certified for purposes of the flood insurance 
     program to settle claims against such program resulting from 
     such disaster in amounts up to the limits of policies under 
     such program;
       ``(2) attend State-sponsored mediation meetings regarding 
     flood insurance claims resulting from such disaster at such 
     times and places as may be arranged by the State;
       ``(3) participate in good faith negotiations toward the 
     settlement of such claims with policyholders of coverage made 
     available under the flood insurance program; and
       ``(4) finalize the settlement of such claims on behalf of 
     the flood insurance program with such policyholders.
       ``(c) Coordination.--Representatives of the Director shall 
     at all times coordinate their activities with insurance 
     officials of the State and representatives of insurers for 
     the purposes of consolidating and expediting settlement of 
     claims under the national flood insurance program resulting 
     from such disaster.
       ``(d) Qualifications of Mediators.--Each State mediator 
     participating in State-sponsored mediation under this section 
     shall be--
       ``(1)(A) a member in good standing of the State bar in the 
     State in which the mediation is to occur with at least 2 
     years of practical experience; and
       ``(B) an active member of such bar for at least 1 year 
     prior to the year in which such mediator's participation is 
     sought; or
       ``(2) a retired trial judge from any United States 
     jurisdiction who was a member in good standing of the bar in 
     the State in which the judge presided for at least 5 years 
     prior to the year in which such mediator's participation is 
     sought.
       ``(e) Mediation Proceedings and Documents Privileged.--As a 
     condition of participation, all statements made and documents 
     produced pursuant to State-sponsored mediation involving 
     representatives of the Director shall be deemed privileged 
     and confidential settlement negotiations made in anticipation 
     of litigation.
       ``(f) Liability, Rights, or Obligations Not Affected.--
     Participation in State-sponsored mediation, as described in 
     this section does not--
       ``(1) affect or expand the liability of any party in 
     contract or in tort; or
       ``(2) affect the rights or obligations of the parties, as 
     established--
       ``(A) in any regulation issued by the Director, including 
     any regulation relating to a standard flood insurance policy;
       ``(B) under this Act; and
       ``(C) under any other provision of Federal law.
       ``(g) Exclusive Federal Jurisdiction.--Participation in 
     State-sponsored mediation shall not alter, change, or modify 
     the original exclusive jurisdiction of United States courts, 
     as set forth in this Act.
       ``(h) Cost Limitation.--Nothing in this section shall be 
     construed to require the Director or a representative of the 
     Director to pay additional mediation fees relating to flood 
     insurance claims associated with a State-sponsored mediation 
     program in which such representative of the Director 
     participates.
       ``(i) Exception.--In the case of the occurrence of a major 
     disaster that results in flood damage claims under the 
     national flood insurance program and that does not result in 
     any loss covered by a personal lines residential property 
     insurance policy--
       ``(1) this section shall not apply; and
       ``(2) the provisions of the standard flood insurance policy 
     under the national flood insurance program and the appeals 
     process established under section 205 of the Bunning-
     Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
     U.S.C. 4011 note) and the regulations issued pursuant to such 
     section shall apply exclusively.
       ``(j) Representatives of the Director.--For purposes of 
     this section, the term `representatives of the Director' 
     means representatives of the national flood insurance program 
     who participate in the appeals process established under 
     section 205 of the Bunning-Bereuter-Blumenauer Flood 
     Insurance Reform Act of 2004 (42 U.S.C. 4011 note).''.

     SEC. 127. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 
                   REFORM ACT.

       (a) Minimum Training and Education Requirements.--The 
     Director shall continue to work with the insurance industry, 
     State insurance regulators, and other interested parties to 
     implement the minimum training and education standards for 
     all insurance agents who sell flood insurance policies, as 
     such standards were determined by the Director in the notice 
     published in the Federal Register on September 1, 2005 (70 
     Fed. Reg. 52117) pursuant to section 207 of the Bunning-
     Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
     U.S.C. 4011 note).
       (b) Report on the Overall Implementation of the Reform Act 
     of 2004.--Not later than 3 months after the date of the 
     enactment of this title, the Director shall submit a report 
     to Congress--
       (1) describing the implementation of each provision of the 
     Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 
     2004 (Public Law 108-264; 118 Stat. 712);
       (2) identifying each regulation, order, notice, and other 
     material issued by the Director in implementing each 
     provision of that Act;
       (3) explaining any statutory or implied deadlines that have 
     not been met; and
       (4) providing an estimate of when the requirements of such 
     missed deadlines will be fulfilled.

     SEC. 128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION 
                   ON CLAIMS PAYMENTS.

       (a) In General.--The Director shall collect, from property 
     and casualty insurance

[[Page S3829]]

     companies that are authorized by the Director to participate 
     in the Write Your Own program any information and data needed 
     to determine the accuracy of the resolution of flood claims 
     filed on any property insured with a standard flood insurance 
     policy obtained under the program that was subject to a 
     flood.
       (b) Type of Information To Be Collected.--The information 
     and data to be collected under subsection (a) may include--
       (1) any adjuster estimates made as a result of flood 
     damage, and if the insurance company also insures the 
     property for wind damage--
       (A) any adjuster estimates for both wind and flood damage;
       (B) the amount paid to the property owner for wind and 
     flood claims;
       (C) the total amount paid to the policyholder for damages 
     as a result of the event that caused the flooding and other 
     losses;
       (2) any amounts paid to the policyholder by the insurance 
     company for damages to the insured property other than flood 
     damages; and
       (3) the total amount paid to the policyholder by the 
     insurance company for all damages incurred to the insured 
     property as a result of the flood.

     SEC. 129. EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

       (a) Submission of Biennial Reports.--
       (1) To the director.--Not later than 20 days after the date 
     of enactment of this title, each property and casualty 
     insurance company that is authorized by the Director to 
     participate in the Write Your Own program shall submit to the 
     Director any biennial report prepared in the prior 5 years by 
     such company.
       (2) To gao.--Not later than 10 days after the submission of 
     the biennial reports under paragraph (1), the Director shall 
     submit all such reports to the Comptroller General of the 
     United States.
       (3) Notice to congress of failure to comply.--The Director 
     shall notify and report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives on any 
     property and casualty insurance company participating in the 
     Write Your Own program that failed to submit its biennial 
     reports as required under paragraph (1).
       (b) FEMA Rulemaking on Expenses of WYO Program.--Not later 
     than 180 days after the date of enactment of this title, the 
     Director shall conduct a rulemaking proceeding to devise a 
     data collection methodology to allow the Federal Emergency 
     Management Agency to collect consistent information on the 
     expenses (including the operating and administrative expenses 
     for adjustment of claims) of property and casualty insurance 
     companies participating in the Write Your Own program for 
     selling, writing, and servicing, standard flood insurance 
     policies.
       (c) Submission of Expense Reports.--Not later than 60 days 
     after the effective date of the final rule established 
     pursuant to subsection (b), each property and casualty 
     insurance company participating in the Write Your Own program 
     shall submit a report to the Director that details for the 
     prior 5 years the expense levels of each such company for 
     selling, writing, and servicing standard flood insurance 
     policies based on the methodologies established under 
     subsection (b).
       (d) FEMA Rulemaking on Reimbursement of Expenses Under the 
     WYO Program.--Not later than 15 months after the date of 
     enactment of this title, the Director shall conduct a 
     rulemaking proceeding to formulate revised expense 
     reimbursements to property and casualty insurance companies 
     participating in the Write Your Own program for their 
     expenses (including their operating and administrative 
     expenses for adjustment of claims) in selling, writing, and 
     servicing standard flood insurance policies, including how 
     such companies shall be reimbursed in both catastrophic and 
     non-catastrophic years. Such reimbursements shall be 
     structured to ensure reimbursements track the actual 
     expenses, including standard business costs and operating 
     expenses, of such companies as close as practicably possible.
       (e) Report of the Director.--Not later than 60 days after 
     the effective date of any final rule established pursuant to 
     subsection (b) or subsection (d), the Director shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Financial Services of the 
     House of Representatives a report containing--
       (1) the specific rationale and purposes of such rule;
       (2) the reasons for the adoption of the policies contained 
     in such rule; and
       (3) the degree to which such rule accurately represents the 
     true operating costs and expenses of property and casualty 
     insurance companies participating in the Write Your Own 
     program.
       (f) GAO Study and Report on Expenses of WYO Program.--
       (1) Study.--Not later than 180 days after the effective 
     date of the final rule established pursuant to subsection 
     (d), the Comptroller General of the United States shall--
       (A) conduct a study on the efficacy, adequacy, and 
     sufficiency of the final rules established pursuant to 
     subsections (b) and (d); and
       (B) report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the findings of the study 
     conducted under subparagraph (A).
       (2) GAO authority.--In conducting the study and report 
     required under paragraph (1), the Comptroller General--
       (A) may use any previous findings, studies, or reports that 
     the Comptroller General previously completed on the Write 
     Your Own program;
       (B) shall determine if--
       (i) the final rules established pursuant to subsections (b) 
     and (d) allow the Federal Emergency Management Agency to 
     access adequate information regarding the actual expenses of 
     property and casualty insurance companies participating in 
     the Write Your Own program; and
       (ii) the actual reimbursements paid out under the final 
     rule established in subsection (d) accurately reflect the 
     expenses reported by property and casualty insurance 
     companies participating in the Write Your Own program, 
     including the standard business costs and operating expenses 
     of such companies; and
       (C) shall analyze the effect of such rules on the level of 
     participation of property and casualty insurers in the Write 
     Your Own program.

     SEC. 130. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE 
                   REPETITIVE LOSS PROPERTIES.

       (a) In General.--Section 1361A of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102a) is amended--
       (1) in subsection (k)(1)--
       (A) in the first sentence, by striking ``in each of fiscal 
     years 2005, 2006, 2007, 2008, and 2009'' and inserting ``in 
     each fiscal year through fiscal year 2013''; and
       (B) by adding at the end the following new sentence: ``For 
     fiscal years 2008 through the 2013, the total amount that the 
     Director may use to provide assistance under this section 
     shall not exceed $240,000,000.''; and
       (2) by striking subsection (l).
       (b) Report to Congress on Implementation Status.--Not later 
     than 6 months after the date of enactment of this title, the 
     Director shall report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives on the 
     status of the implementation of the pilot program for severe 
     repetitive loss properties authorized under section 1361A of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
       (c) Rulemaking.--No later than 90 days after the date of 
     enactment of this title, the Director shall issue final rules 
     to carry out the severe repetitive loss pilot program 
     authorized under section 1361A of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102a).

     SEC. 131. FLOOD INSURANCE ADVOCATE.

       Chapter II of the National Flood Insurance Act of 1968 is 
     amended by inserting after section 1330 (42 U.S.C. 4041) the 
     following new section:

     ``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

       ``(a) Establishment of Position.--
       ``(1) In general.--There shall be in the Federal Emergency 
     Management Agency an Office of the Flood Insurance Advocate 
     which shall be headed by the National Flood Insurance 
     Advocate. The National Flood Insurance Advocate shall report 
     directly to the Director and shall, to the extent amounts are 
     provided pursuant to subsection (f), be compensated at the 
     same rate as the highest rate of basic pay established for 
     the Senior Executive Service under section 5382 of title 5, 
     United States Code, or, if the Director so determines, at a 
     rate fixed under section 9503 of such title.
       ``(2) Appointment.--The National Flood Insurance Advocate 
     shall be appointed by the Director and the flood insurance 
     advisory committee established pursuant to section 1318 and 
     without regard to the provisions of title 5, United States 
     Code, relating to appointments in the competitive service or 
     the Senior Executive Service.
       ``(3) Qualifications.--An individual appointed under 
     paragraph (2) shall have--
       ``(A) a background in customer service as well as 
     insurance; and
       ``(B) experience in representing individual insureds.
       ``(4) Restriction on employment.--An individual may be 
     appointed as the National Flood Insurance Advocate only if 
     such individual was not an officer or employee of the Federal 
     Emergency Management Agency with duties relating to the 
     national flood insurance program during the 2-year period 
     ending with such appointment and such individual agrees not 
     to accept any employment with the Federal Emergency 
     Management Agency for at least 2 years after ceasing to be 
     the National Flood Insurance Advocate. Service as an employee 
     of the National Flood Insurance Advocate shall not be taken 
     into account in applying this paragraph.
       ``(5) Staff.--To the extent amounts are provided pursuant 
     to subsection (f), the National Flood Insurance Advocate may 
     employ such personnel as may be necessary to carry out the 
     duties of the Office.
       ``(b) Functions of Office.--
       ``(1) In general.--It shall be the function of the Office 
     of the Flood Insurance Advocate to--
       ``(A) assist insureds under the national flood insurance 
     program in resolving problems with the Federal Emergency 
     Management Agency relating to such program;
       ``(B) identify areas in which such insureds have problems 
     in dealings with the Federal Emergency Management Agency 
     relating to such program;

[[Page S3830]]

       ``(C) propose changes in the administrative practices of 
     the Federal Emergency Management Agency to mitigate problems 
     identified under subparagraph (B); and
       ``(D) identify potential legislative, administrative, or 
     regulatory changes which may be appropriate to mitigate such 
     problems.
       ``(2) Annual reports.--
       ``(A) Activities.--Not later than December 31 of each 
     calendar year, the National Flood Insurance Advocate shall 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the activities of the 
     Office of the Flood Insurance Advocate during the fiscal year 
     ending during such calendar year. Any such report shall 
     contain a full and substantive analysis of such activities, 
     in addition to statistical information, and shall--
       ``(i) identify the initiatives the Office of the Flood 
     Insurance Advocate has taken on improving services for 
     insureds under the national flood insurance program and 
     responsiveness of the Federal Emergency Management Agency 
     with respect to such initiatives;
       ``(ii) describe the nature of recommendations made to the 
     Director under subsection (e);
       ``(iii) contain a summary of the most serious problems 
     encountered by such insureds, including a description of the 
     nature of such problems;
       ``(iv) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action has been taken 
     and the result of such action;
       ``(v) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action remains to be 
     completed and the period during which each item has remained 
     on such inventory;
       ``(vi) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which no action has been 
     taken, the period during which each item has remained on such 
     inventory and the reasons for the inaction;
       ``(vii) identify any Flood Insurance Assistance 
     Recommendation which was not responded to by the Director in 
     a timely manner or was not followed, as specified under 
     subsection (e);
       ``(viii) contain recommendations for such administrative 
     and legislative action as may be appropriate to resolve 
     problems encountered by such insureds;
       ``(ix) identify areas of the law or regulations relating to 
     the national flood insurance program that impose significant 
     compliance burdens on such insureds or the Federal Emergency 
     Management Agency, including specific recommendations for 
     remedying these problems;
       ``(x) identify the most litigated issues for each category 
     of such insureds, including recommendations for mitigating 
     such disputes; and
       ``(xi) include such other information as the National Flood 
     Insurance Advocate may deem advisable.
       ``(B) Direct submission of report.--Each report required 
     under this paragraph shall be provided directly to the 
     committees identified in subparagraph (A) without any prior 
     review or comment from the Director, the Secretary of 
     Homeland Security, or any other officer or employee of the 
     Federal Emergency Management Agency or the Department of 
     Homeland Security, or the Office of Management and Budget.
       ``(3) Other responsibilities.--The National Flood Insurance 
     Advocate shall--
       ``(A) monitor the coverage and geographic allocation of 
     regional offices of flood insurance advocates;
       ``(B) develop guidance to be distributed to all Federal 
     Emergency Management Agency officers and employees having 
     duties with respect to the national flood insurance program, 
     outlining the criteria for referral of inquiries by insureds 
     under such program to regional offices of flood insurance 
     advocates;
       ``(C) ensure that the local telephone number for each 
     regional office of the flood insurance advocate is published 
     and available to such insureds served by the office; and
       ``(D) establish temporary State or local offices where 
     necessary to meet the needs of qualified insureds following a 
     flood event.
       ``(4) Personnel actions.--
       ``(A) In general.--The National Flood Insurance Advocate 
     shall have the responsibility and authority to--
       ``(i) appoint regional flood insurance advocates in a 
     manner that will provide appropriate coverage based upon 
     regional flood insurance program participation; and
       ``(ii) hire, evaluate, and take personnel actions 
     (including dismissal) with respect to any employee of any 
     regional office of a flood insurance advocate described in 
     clause (i).
       ``(B) Consultation.--The National Flood Insurance Advocate 
     may consult with the appropriate supervisory personnel of the 
     Federal Emergency Management Agency in carrying out the 
     National Flood Insurance Advocate's responsibilities under 
     this paragraph.
       ``(c) Responsibilities of Director.--The Director shall 
     establish procedures requiring a formal response consistent 
     with the requirements of subsection (e)(3) to all 
     recommendations submitted to the Director by the National 
     Flood Insurance Advocate.
       ``(d) Operation of Regional Offices.--
       ``(1) In general.--Each regional flood insurance advocate 
     appointed pursuant to subsection (b)--
       ``(A) shall report to the National Flood Insurance Advocate 
     or delegate thereof;
       ``(B) may consult with the appropriate supervisory 
     personnel of the Federal Emergency Management Agency 
     regarding the daily operation of the regional office of the 
     flood insurance advocate;
       ``(C) shall, at the initial meeting with any insured under 
     the national flood insurance program seeking the assistance 
     of a regional office of the flood insurance advocate, notify 
     such insured that the flood insurance advocate offices 
     operate independently of any other Federal Emergency 
     Management Agency office and report directly to Congress 
     through the National Flood Insurance Advocate; and
       ``(D) may, at the flood insurance advocate's discretion, 
     not disclose to the Director contact with, or information 
     provided by, such insured.
       ``(2) Maintenance of independent communications.--Each 
     regional office of the flood insurance advocate shall 
     maintain a separate phone, facsimile, and other electronic 
     communication access.
       ``(e) Flood Insurance Assistance Recommendations.--
       ``(1) Authority to issue.--Upon application filed by a 
     qualified insured with the Office of the Flood Insurance 
     Advocate (in such form, manner, and at such time as the 
     Director shall by regulation prescribe), the National Flood 
     Insurance Advocate may issue a Flood Insurance Assistance 
     Recommendation, if the Advocate finds that the qualified 
     insured is suffering a significant hardship, such as a 
     significant delay in resolving claims where the insured is 
     incurring significant costs as a result of such delay, or 
     where the insured is at risk of adverse action, including the 
     loss of property, as a result of the manner in which the 
     flood insurance laws are being administered by the Director.
       ``(2) Terms of a flood insurance assistance 
     recommendation.--The terms of a Flood Insurance Assistance 
     Recommendation may recommend to the Director that the 
     Director, within a specified time period, cease any action, 
     take any action as permitted by law, or refrain from taking 
     any action, including the payment of claims, with respect to 
     the qualified insured under any other provision of law which 
     is specifically described by the National Flood Insurance 
     Advocate in such recommendation.
       ``(3) Director response.--Not later than 15 days after the 
     receipt of any Flood Insurance Assistance Recommendation 
     under this subsection, the Director shall respond in writing 
     as to--
       ``(A) whether such recommendation was followed;
       ``(B) why such recommendation was or was not followed; and
       ``(C) what, if any, additional actions were taken by the 
     Director to prevent the hardship indicated in such 
     recommendation.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) National flood insurance advocate.--The term 
     `National Flood Insurance Advocate' includes any designee of 
     the National Flood Insurance Advocate.
       ``(B) Qualified insured.--The term `qualified insured' 
     means an insured under coverage provided under the national 
     flood insurance program under this title.
       ``(f) Funding.--Pursuant to section 1310(a)(8), the 
     Director may use amounts from the National Flood Insurance 
     Fund to fund the activities of the Office of the Flood 
     Advocate in each of fiscal years 2008 through 2013, except 
     that the amount so used in each such fiscal year may not 
     exceed $5,000,000 and shall remain available until expended. 
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this subsection shall not be 
     subject to offsetting collections through premium rates for 
     flood insurance coverage under this title.''.

     SEC. 132. STUDIES AND REPORTS.

       (a) Report on Expanding the National Flood Insurance 
     Program.--Not later than 1 year after the date of the 
     enactment of this title, the Comptroller General of the 
     United States shall conduct a study and submit a report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, on--
       (1) the number of flood insurance policy holders currently 
     insuring--
       (A) a residential structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of--
       (i) $250,000 for the structure; and
       (ii) $100,000 for the contents of such structure; or
       (B) a commercial structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of $500,000;
       (2) the increased losses the National Flood Insurance 
     Program would have sustained during the 2004 and 2005 
     hurricane season if the National Flood Insurance Program had 
     insured all policyholders up to the maximum conforming loan 
     limit for fiscal year 2006 of $417,000, as established under 
     section 302(b)(2) of the Federal National Mortgage 
     Association Charter Act (12 U.S.C. 1717(b)(2));
       (3) the availability in the private marketplace of flood 
     insurance coverage in amounts that exceed the current limits 
     of coverage amounts established in section 61.6 of title 44, 
     Code of Federal Regulations; and
       (4) what effect, if any--
       (A) raising the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     continue providing flood insurance coverage; and

[[Page S3831]]

       (B) reducing the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     provide sufficient flood insurance coverage to effectively 
     replace the current level of flood insurance coverage being 
     provided under the National Flood Insurance Program.
       (b) Report of the Director on Activities Under the National 
     Flood Insurance Program.--
       (1) In general.--The Director shall, on an annual basis, 
     submit a full report on the operations, activities, budget, 
     receipts, and expenditures of the National Flood Insurance 
     Program for the preceding 12-month period to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives.
       (2) Timing.--Each report required under paragraph (1) shall 
     be submitted to the committees described in paragraph (1) not 
     later than 3 months following the end of each fiscal year.
       (3) Contents.--Each report required under paragraph (1) 
     shall include--
       (A) the current financial condition and income statement of 
     the National Flood Insurance Fund established under section 
     1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4017), including--
       (i) premiums paid into such Fund;
       (ii) policy claims against such Fund; and
       (iii) expenses in administering such Fund;
       (B) the number and face value of all policies issued under 
     the National Flood Insurance Program that are in force;
       (C) a description and summary of the losses attributable to 
     repetitive loss structures;
       (D) a description and summary of all losses incurred by the 
     National Flood Insurance Program due to--
       (i) hurricane related damage; and
       (ii) nonhurricane related damage;
       (E) the amounts made available by the Director for 
     mitigation assistance under section 1366(e)(5) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)) 
     for the purchase of properties substantially damaged by flood 
     for that fiscal year, and the actual number of flood damaged 
     properties purchased and the total cost expended to purchase 
     such properties;
       (F) the estimate of the Director as to the average 
     historical loss year, and the basis for that estimate;
       (G) the estimate of the Director as to the maximum amount 
     of claims that the National Flood Insurance Program would 
     have to expend in the event of a catastrophic year;
       (H) the average--
       (i) amount of insurance carried per flood insurance policy;
       (ii) premium per flood insurance policy; and
       (iii) loss per flood insurance policy; and
       (I) the number of claims involving damages in excess of the 
     maximum amount of flood insurance available under the 
     National Flood Insurance Program and the sum of the amount of 
     all damages in excess of such amount.
       (c) GAO Study on Pre-FIRM Structures.--Not later than 1 
     year after the date of the enactment of this title, the 
     Comptroller General of the United States shall conduct a 
     study and submit a report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives, on the--
       (1) composition of the remaining pre-FIRM structures that 
     are explicitly receiving discounted premium rates under 
     section 1307 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104), including the historical basis for the receipt 
     of such subsidy and whether such subsidy has outlasted its 
     purpose;
       (2) number and fair market value of such structures;
       (3) respective income level of each owner of such 
     structure;
       (4) number of times each such structure has been sold since 
     1968, including specific dates, sales price, and any other 
     information the Secretary determines appropriate;
       (5) total losses incurred by such structures since the 
     establishment of the National Flood Insurance Program 
     compared to the total losses incurred by all structures that 
     are charged a nondiscounted premium rate;
       (6) total cost of foregone premiums since the establishment 
     of the National Flood Insurance Program, as a result of the 
     subsidies provided to such structures;
       (7) annual cost to the taxpayer, as a result of the 
     subsidies provided to such structures;
       (8) the premium income collected and the losses incurred by 
     the National Flood Insurance Program as a result of such 
     explicitly subsidized structures compared to the premium 
     income collected and the losses incurred by such Program as 
     result of structures that are charged a nondiscounted premium 
     rate, on a State-by-State basis; and
       (9) the most efficient way to eliminate the subsidy to such 
     structures.
       (d) GAO Review of FEMA Contractors.--The Comptroller 
     General of the United States, in conjunction with the 
     Department of Homeland Security's Inspectors general Office, 
     shall--
       (1) conduct a review of the 3 largest contractors the 
     Director uses in administering the National Flood Insurance 
     Program; and
       (2) not later than 18 months after the date of enactment of 
     this title, submit a report on the findings of such review to 
     the Director, the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, and the Committee on Financial 
     Services of the House of Representatives.

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

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Commission on Natural 
     Catastrophe Risk Management and Insurance Act of 2008''.

     SEC. 202. FINDINGS.

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

     SEC. 203. ESTABLISHMENT.

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

     SEC. 204. MEMBERSHIP.

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

[[Page S3832]]

       (d) Quorum.--
       (1) Majority.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number, as determined 
     by the Commission, may hold hearings.
       (2) Approval actions.--All recommendations and reports of 
     the Commission required by this title shall be approved only 
     by a majority vote of all of the members of the Commission.
       (e) Chairperson.--The Commission shall, by majority vote of 
     all of the members, select 1 member to serve as the 
     Chairperson of the Commission (in this title referred to as 
     the ``Chairperson'').
       (f) Meetings.--The Commission shall meet at the call of its 
     Chairperson or a majority of the members.

     SEC. 205. DUTIES OF THE COMMISSION.

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

     SEC. 206. REPORT.

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

     SEC. 207. POWERS OF THE COMMISSION.

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

     SEC. 208. COMMISSION PERSONNEL MATTERS.

       (a) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (b) Subcommittees.--The Commission may establish 
     subcommittees and appoint members of the Commission to such 
     subcommittees as the Commission considers appropriate.
       (c) Staff.--Subject to such policies as the Commission may 
     prescribe, the Chairperson may appoint and fix the pay of 
     such additional personnel as the Chairperson considers 
     appropriate to carry out the duties of the Commission. The 
     Commission shall confirm the appointment of the executive 
     director by majority vote of all of the members of the 
     Commission.
       (d) Applicability of Certain Civil Service Laws.--Staff of 
     the Commission may be--
       (1) appointed without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service; and

[[Page S3833]]

       (2) paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (e) Experts and Consultants.--In carrying out its 
     objectives, the Commission may procure temporary and 
     intermittent services of consultants and experts under 
     section 3109(b) of title 5, United States Code, at rates for 
     individuals which do not exceed the daily equivalent of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (f) Detail of Government Employees.--Upon request of the 
     Chairperson, any Federal Government employee may be detailed 
     to the Commission to assist in carrying out the duties of the 
     Commission--
       (1) on a reimbursable basis; and
       (2) such detail shall be without interruption or loss of 
     civil service status or privilege.

     SEC. 209. TERMINATION.

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

     SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission, 
     such sums as may be necessary to carry out this title, to 
     remain available until expended.
                                 ______
                                 
  SA 4708. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 2284, to amend the National Flood Insurance Act 
of 1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 7, line 2, strike ``including for--'' and all that 
     follows through the period on line 21 and insert the 
     following: ``including for any property which is not the 
     primary residence of an individual.''
                                 ______
                                 
  SA 4709. Mr. NELSON of Florida (for himself, Mrs. Clinton, Mr. 
Martinez, and Ms. Landrieu) submitted an amendment intended to be 
proposed by him to the bill S. 2284, to amend the National Flood 
Insurance Act of 1968, to restore the financial solvency of the floor 
insurance fund, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                  DIVISION B--HOMEOWNERS' DEFENSE ACT

     SEC. 101. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Homeowners' Defense Act of 2008''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

                  DIVISION B--HOMEOWNERS' DEFENSE ACT

Sec. 101. Short title; table of contents.
Sec. 102. Findings and purposes.
Sec. 103. Qualified reinsurance programs.
Sec. 104. Definitions.
Sec. 105. Regulations.

             TITLE I--NATIONAL CATASTROPHE RISK CONSORTIUM

Sec. 111. Establishment; status; principal office; membership.
Sec. 112. Functions.
Sec. 113. Powers.
Sec. 114. Nonprofit entity; conflicts of interest; audits.
Sec. 115. Management.
Sec. 116. Staff; experts and consultants.
Sec. 117. Federal liability.
Sec. 118. Authorization of appropriations.

     TITLE II--NATIONAL HOMEOWNERS' INSURANCE STABILIZATION PROGRAM

Sec. 201. Establishment.
Sec. 202. Liquidity loans and catastrophic loans for State and regional 
              reinsurance programs.
Sec. 203. Reports and audits.
Sec. 204. Funding.

     SEC. 102. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) the United States has a history of catastrophic natural 
     disasters, including hurricanes, tornadoes, flood, fire, 
     earthquakes, and volcanic eruptions;
       (2) although catastrophic natural disasters occur 
     infrequently, they will continue to occur and are 
     predictable;
       (3) such disasters generate large economic losses and a 
     major component of those losses comes from damage and 
     destruction to homes;
       (4) for the majority of Americans, their investment in 
     their home represents their single biggest asset and the 
     protection of that investment is paramount to economic and 
     social stability;
       (5) historically, when a natural disaster eclipses the 
     ability of the private industry and a State to manage the 
     loss, the Federal Government has stepped in to provide the 
     funding and services needed for recovery;
       (6) the cost of such Federal ``bail-outs'' are borne by all 
     taxpayers equally, as there is no provision to repay the 
     money and resources provided, which thereby unfairly burdens 
     citizens who live in lower risk communities;
       (7) as the risk of catastrophic losses grows, so do the 
     risks that any premiums collected by private insurers for 
     extending coverage will be insufficient to cover future 
     catastrophes (known as timing risk), and private insurers, in 
     an effort to protect their shareholders and policyholders (in 
     the case of mutually-owned companies), have thus 
     significantly raised premiums and curtailed insurance 
     coverage in States exposed to major catastrophes;
       (8) such effects on the insurance industry have been 
     harmful to economic activity in States exposed to major 
     catastrophes and have placed significant burdens on existing 
     residents of such States;
       (9) Hurricanes Katrina, Rita, and Wilma struck the United 
     States in 2005, causing over $200,000,000,000 in total 
     economic losses, and insured losses to homeowners in excess 
     of $50,000,000,000;
       (10) since 2004, the Congress has appropriated more than 
     $58,000,000,000 in disaster relief to the States affected by 
     natural catastrophes;
       (11) the Federal Government has provided and will continue 
     to provide resources to pay for losses from future 
     catastrophes;
       (12) when Federal assistance is provided to the States, 
     accountability for Federal funds disbursed is paramount;
       (13) the Government Accountability Office or other 
     appropriate agencies must have the means in place to confirm 
     that Federal funds for catastrophe relief have reached the 
     appropriate victims and have contributed to the recovery 
     effort as efficiently as possible so that taxpayer funds are 
     not wasted and citizens are enabled to rebuild and resume 
     productive activities as quickly as possible;
       (14) States that are recipients of Federal funds must be 
     responsible to account for and provide an efficient means for 
     distribution of funds to homeowners to enable the rapid 
     rebuilding of local economies after a catastrophic event 
     without unduly burdening taxpayers who live in areas seldom 
     affected by natural disasters;
       (15) State insurance and reinsurance programs can provide a 
     mechanism for States to exercise that responsibility if they 
     appropriately underwrite and price risk, and if they pay 
     claims quickly and within established contractual terms; and
       (16) State insurers and reinsurers, if appropriately 
     backstopped themselves, can absorb catastrophic risk borne by 
     private insurers without bearing timing risk, and thus enable 
     all insurers (whether State-operated or privately owned) to 
     underwrite and price insurance without timing risk and in 
     such a way to encourage property owners to pay for the 
     appropriate insurance to protect themselves and to take steps 
     to mitigate against the risks of disaster by locally 
     appropriate methods.
       (b) Purposes.--The purposes of this division are to 
     establish a program to provide a Federal backstop for State-
     sponsored insurance programs to help homeowners prepare for 
     and recover from the damages caused by natural catastrophes, 
     to encourage mitigation and prevention for such catastrophes, 
     to promote the use of private market capital as a means to 
     insure against such catastrophes, to expedite the payment of 
     claims and better assist in the financial recovery from such 
     catastrophes.

     SEC. 103. QUALIFIED REINSURANCE PROGRAMS.

       (a) In General.--For purposes of this division only, a 
     program shall be considered to be a qualified reinsurance 
     program if the program--
       (1) is authorized by State law for the purposes described 
     in this section;
       (2) is an entity in which the authorizing State maintains a 
     material, financial interest;
       (3) provides reinsurance or retrocessional coverage to 
     underlying primary insurers or reinsurers for losses arising 
     from all personal residential lines of insurance, as defined 
     in the Uniform Property & Casualty Product Coding Matrix 
     published and maintained by the National Association of 
     Insurance Commissioners;
       (4) has a governing body, a majority of whose members are 
     public officials;
       (5) provides reinsurance or retrocessional coverage to 
     underlying primary insurers or reinsurers for losses in 
     excess of such amount that the Secretary has determined 
     represents a catastrophic event in that particular State;
       (6) is authorized by a State that has in effect such laws, 
     regulations, or other requirements, as the Secretary shall by 
     regulation provide, that--
       (A) ensure, to the extent that reinsurance coverage made 
     available under the qualified reinsurance program results in 
     any cost savings in providing insurance coverage for risks in 
     such State, such cost savings are reflected in premium rates 
     charged to consumers for such coverage;
       (B) require that any new construction, substantial 
     rehabilitation, and renovation insured or reinsured by the 
     program complies with applicable State or local government 
     building, fire, and safety codes;
       (C) require State authorized insurance entities within that 
     State to establish an insurance rate structure that takes 
     into account measures to mitigate insurance losses;
       (D) require State authorized insurance and reinsurance 
     entities within that State to establish rates at a level that 
     annually produces expected premiums that shall be sufficient 
     to pay the expected annualized cost of all claims, loss 
     adjustment expenses, and all administrative costs of 
     reinsurance coverage offered; and
       (E) encourage State authorized insurance and reinsurance 
     entities within that State to establish rates that do not 
     involve cross-subsidization between any separate property

[[Page S3834]]

     and casualty lines covered under the State authorized 
     insurance or reinsurance entity; and
       (7) complies with such additional organizational, 
     underwriting, and financial requirements as the Secretary 
     shall, by regulation, provide to carry out the purposes of 
     this division.
       (b) Transitional Mechanisms.--For the 5-year period 
     beginning on the date of enactment of this division, in the 
     case of a State that does not have a qualified reinsurance 
     program for the State, a State residual insurance market 
     entity for such State shall be considered to be a qualified 
     reinsurance program, but only if such State residual 
     insurance market entity was in existence before such date of 
     enactment.
       (c) Precertification.--The Secretary shall establish 
     procedures and standards for State and regional reinsurance 
     programs and the State residual insurance market entities 
     described in subsection (b) to apply to the Secretary at any 
     time for certification (and recertification) as qualified 
     reinsurance programs.
       (d) Reinsurance To Cover Exposure.--This section may not be 
     construed to limit or prevent any insurer from obtaining 
     reinsurance coverage for insured losses retained by insurers 
     pursuant to this section, nor shall the obtaining of such 
     coverage affect the calculation of the amount of any loan 
     under this division.

     SEC. 104. DEFINITIONS.

       For purposes of this division, the following definitions 
     shall apply:
       (1) Ceiling coverage level.--The term ``ceiling coverage 
     level'' means, with respect to a qualified reinsurance 
     program, the maximum liability, under law, that could be 
     incurred at any time by the qualified reinsurance program.
       (2) Commission.--The term ``Commission'' means the National 
     Commission on Natural Catastrophe Preparation and Protection 
     established under title II.
       (3) Consortium.--The term ``Consortium'' means the National 
     Catastrophic Risk Consortium established under title I.
       (4) Insured loss.--The term ``insured loss'' means any loss 
     insured by a qualified reinsurance program.
       (5) Qualified reinsurance program.--The term ``qualified 
     reinsurance program'' means a State or regional program that 
     meets the requirements of section 103.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (7) State.--The term ``State'' includes the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     Guam, the Commonwealth of the Northern Mariana Islands, the 
     United States Virgin Islands, and American Samoa.

     SEC. 105. REGULATIONS.

       The Secretary shall issue such regulations as may be 
     necessary to carry out this division.

             TITLE I--NATIONAL CATASTROPHE RISK CONSORTIUM

     SEC. 111. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE; 
                   MEMBERSHIP.

       (a) Establishment.--There is established an entity to be 
     known as the ``National Catastrophe Risk Consortium''.
       (b) Status.--The Consortium is not a department, agency, or 
     instrumentality of the United States Government.
       (c) Principal Office.--The principal office and place of 
     business of the Consortium shall be such location within the 
     United States determined by the Board of Directors to be the 
     most advantageous for carrying out the purpose and functions 
     of the Consortium.
       (d) Membership.--Any State that has established a 
     reinsurance fund or has authorized the operation of a State 
     residual insurance market entity shall be eligible to 
     participate in the Consortium.

     SEC. 112. FUNCTIONS.

       The Consortium shall--
       (1) work with all States, particularly those participating 
     in the Consortium, to gather and maintain an inventory of 
     catastrophe risk obligations held by State reinsurance funds 
     and State residual insurance market entities;
       (2) at the discretion of the affected members and on a 
     conduit basis, issue securities and other financial 
     instruments linked to the catastrophe risks insured or 
     reinsured through members of the Consortium in the capital 
     markets;
       (3) coordinate reinsurance contracts between participating, 
     qualified reinsurance funds and private parties;
       (4) act as a centralized repository of State risk 
     information that can be accessed by private-market 
     participants seeking to participate in the transactions 
     described in paragraphs (2) and (3) of this section;
       (5) use a catastrophe risk database to perform research and 
     analysis that encourages standardization of the risk-linked 
     securities market;
       (6) perform any other functions, other than assuming risk 
     or incurring debt, that are deemed necessary to aid in the 
     transfer of catastrophe risk from participating States to 
     private parties; and
       (7) submit annual reports to Congress describing the 
     activities of the Consortium for the preceding year.

     SEC. 113. POWERS.

       The Consortium--
       (1) may make and perform such contracts and other 
     agreements with any individual or other private or public 
     entity however designated and wherever situated, as may be 
     necessary for carrying out the functions of the Consortium; 
     and
       (2) shall have such other powers, other than the power to 
     assume risk or incur debt, as may be necessary and incident 
     to carrying out this division.

     SEC. 114. NONPROFIT ENTITY; CONFLICTS OF INTEREST; AUDITS.

       (a) Nonprofit Entity.--The Consortium shall be a nonprofit 
     entity and no part of the net earnings of the Consortium 
     shall inure to the benefit of any member, founder, 
     contributor, or individual.
       (b) Conflicts of Interest.--No director, officer, or 
     employee of the Consortium shall in any manner, directly or 
     indirectly, participate in the deliberation upon or the 
     determination of any question affecting his or her personal 
     interests or the interests of any Consortium, partnership, or 
     organization in which he or she is directly or indirectly 
     interested.
       (c) Audits.--
       (1) Annual audit.--The financial statements of the 
     Consortium shall be audited annually in accordance with 
     generally accepted auditing standards by independent 
     certified public accountants.
       (2) Reports.--The report of each annual audit pursuant to 
     paragraph (1) shall be included in the annual report 
     submitted in accordance with section 112(7).

     SEC. 115. MANAGEMENT.

       (a) Board of Directors; Membership; Designation of 
     Chairperson.--
       (1) Board of directors.--The management of the Consortium 
     shall be vested in a board of directors (referred to in this 
     title as the ``Board'') composed of not fewer than 3 members.
       (2) Chairperson.--The Secretary, or the designee of the 
     Secretary, shall serve as the chairperson of the Board.
       (3) Membership.--The members of the Board shall include--
       (A) the Secretary of Homeland Security and the Secretary of 
     Commerce, or the designees of such Secretaries, respectively, 
     but only during such times as there are fewer than 2 States 
     participating in the Consortium; and
       (B) a member from each State participating in the 
     Consortium, who shall be appointed by such State.
       (b) Bylaws.--The Board may prescribe, amend, and repeal 
     such bylaws as may be necessary for carrying out the 
     functions of the Consortium.
       (c) Compensation, Actual, Necessary, and Transportation 
     Expenses.--
       (1) Non-federal employees.--A member of the Board who is 
     not otherwise employed by the Federal Government shall be 
     entitled to receive the daily equivalent of the annual rate 
     of basic pay payable for level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, as in 
     effect from time to time, for each day (including travel 
     time) during which such member is engaged in the actual 
     performance of duties of the Consortium.
       (2) Federal employees.--A member of the Board who is an 
     officer or employee of the Federal Government shall serve 
     without additional pay (or benefits in the nature of 
     compensation) for service as a member of the Consortium.
       (3) Travel expenses.--Members of the Consortium shall be 
     entitled to receive travel expenses, including per diem in 
     lieu of subsistence, equivalent to those set forth in 
     subchapter I of chapter 57 of title 5, United States Code.
       (d) Quorum.--A majority of the Board shall constitute a 
     quorum.
       (e) Executive Director.--The Board shall appoint an 
     executive director of the Consortium, on such terms as the 
     Board may determine.

     SEC. 116. STAFF; EXPERTS AND CONSULTANTS.

       (a) Staff.--
       (1) Appointment.--The Board of the Consortium may appoint 
     and terminate such other staff as are necessary to enable the 
     Consortium to perform its duties.
       (2) Compensation.--The Board of the Consortium may fix the 
     compensation of the executive director and other staff.
       (b) Experts and Consultants.--The Board shall procure the 
     services of experts and consultants as the Board considers 
     appropriate.

     SEC. 117. FEDERAL LIABILITY.

       The Federal Government and the Consortium shall not bear 
     any liabilities arising from the actions of the Consortium. 
     Participating States shall retain all catastrophe risk until 
     the completion of a transaction described in paragraphs (2) 
     and (3) of section 112.

     SEC. 118. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $20,000,000 for each of fiscal years 2009 through 2014.

     TITLE II--NATIONAL HOMEOWNERS' INSURANCE STABILIZATION PROGRAM

     SEC. 201. ESTABLISHMENT.

       The Secretary shall carry out a program under this title to 
     make liquidity loans and catastrophic loans under section 202 
     to qualified reinsurance programs to ensure the solvency of 
     such programs, to improve the availability and affordability 
     of homeowners' insurance, to provide incentive for risk 
     transfer to the private capital and reinsurance markets, and 
     to spread the risk of catastrophic financial loss resulting 
     from natural disasters and catastrophic events.

     SEC. 202. LIQUIDITY LOANS AND CATASTROPHIC LOANS FOR STATE 
                   AND REGIONAL REINSURANCE PROGRAMS.

       (a) Contracts.--The Secretary may enter into a contract 
     with a qualified reinsurance

[[Page S3835]]

     program to carry out this title, as the Secretary may deem 
     appropriate. The contract shall include, at a minimum, the 
     conditions for loan eligibility set forth in this section.
       (b) Conditions for Loan Eligibility.--A loan under this 
     section may be made only to a qualified reinsurance program 
     and only if--
       (1) before the loan is made--
       (A) the State or regional reinsurance program submits to 
     the Secretary a report setting forth, in such form and 
     including such information as the Secretary shall require, 
     how the program plans to repay the loan; and
       (B) based upon the report of the program, the Secretary 
     determines that the program can meet its repayment obligation 
     under the loan and certifies that the program can meet such 
     obligation;
       (2) the program cannot access capital in the private 
     market, including through catastrophe bonds and other 
     securities sold through the facility created in title I of 
     this division, as determined by the Secretary, and a loan may 
     be made to such a qualified reinsurance program only to the 
     extent that such program cannot access capital in the private 
     market;
       (3) the Secretary determines that an event has resulted in 
     insured losses in a State with a qualified reinsurance 
     program;
       (4) the loan complies with the requirements under 
     subsection (d) and or (e), as applicable; and
       (5) the loan is afforded the full faith and credit of the 
     State and the State demonstrates to the Secretary that it has 
     the ability to repay the loans.
       (c) Mandatory Assistance for Qualified Reinsurance 
     Programs.--The Secretary shall, upon the request of a 
     qualified reinsurance program and subject to subsection (b), 
     make a loan under subsection (d) or (e) for such program in 
     the amount requested by such program (subject to the 
     limitations under subsections (d)(2) and (e)(2), 
     respectively).
       (d) Liquidity Loans.--A loan under this subsection for a 
     qualified reinsurance program shall be subject to the 
     following requirements:
       (1) Preconditions.--The Secretary shall have determined 
     that the qualified reinsurance program--
       (A) has a capital liquidity shortage, in accordance with 
     regulations that the Secretary shall establish; and
       (B) cannot access capital markets at effective rates of 
     interest lower than those provided in paragraph (3).
       (2) Amount.--The principal amount of the loan may not 
     exceed the ceiling coverage level for the qualified 
     reinsurance program.
       (3) Rate of interest.--The loan shall bear interest at an 
     annual rate 3 percentage points higher than marketable 
     obligations of the Treasury having the same term to maturity 
     as the loan and issued during the most recently completed 
     month, as determined by the Secretary, or such higher rate as 
     may be necessary to ensure that the amounts of interest paid 
     under such loans exceed the sum of the costs (as such term is 
     defined in section 502 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a)) of such loans, the administrative costs 
     involved in carrying out a program under this title for such 
     loans, and any incidental effects on governmental receipts 
     and outlays.
       (4) Term.--The loan shall have a term to maturity of not 
     less than 5 years and not more than 10 years.
       (e) Catastrophic Loans.--A loan under this subsection for a 
     qualified reinsurance program shall be subject to the 
     following requirements:
       (1) Preconditions.--The Secretary shall have determined 
     that an event has resulted in insured losses in a State with 
     a qualified reinsurance program and that such insured losses 
     in such State are in excess of 150 percent of the aggregate 
     amount of direct written premium for privately issued 
     property and casualty insurance, for risks located in that 
     State, over the calendar year preceding such event, in 
     accordance with regulations that the Secretary shall 
     establish.
       (2) Amount.--The principal amount of the loan made pursuant 
     to an event referred to in paragraph (1) may not exceed the 
     amount by which the insured losses sustained as a result of 
     such event exceed the ceiling coverage level for the 
     qualified reinsurance program.
       (3) Rate of interest.--The loan shall bear interest at an 
     annual rate 0.20 percentage points higher than marketable 
     obligations of the United States Treasury having a term to 
     maturity of not less than 10 years and issued during the most 
     recently completed month, as determined by the Secretary, or 
     such higher rate as may be necessary to ensure that the 
     amounts of interest paid under such loans exceed the sum of 
     the costs (as such term is defined in section 502 of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of such 
     loans, the administrative costs involved in carrying out a 
     program under this title for such loans, and any incidental 
     effects on governmental receipts and outlays.
       (4) Term.--The loan shall have a term to maturity of not 
     less than 10 years.
       (f) Use of Funds.--Amounts from a loan under this section 
     shall only be used to provide reinsurance or retrocessional 
     coverage to underlying primary insurers or reinsurers for 
     losses arising from all personal real property or homeowners' 
     lines of insurance, as defined in the Uniform Property & 
     Casualty Product Coding Matrix published and maintained by 
     the National Association of Insurance Commissioners. Such 
     amounts shall not be used for any other purpose.

     SEC. 203. REPORTS AND AUDITS.

       The Secretary shall submit a report to the President and 
     the Congress annually that identifies and describes any loans 
     made under this title during such year and any repayments 
     during such year of loans made under this title, and 
     describes actions taken to ensure accountability of loan 
     funds. The Secretary shall provide for regular audits to be 
     conducted for each loan made under this title, and shall make 
     the results of such audits publicly available.

     SEC. 204. FUNDING.

       (a) Program Fee.--
       (1) In general.--The Secretary may establish and collect, 
     from qualified reinsurance programs that are precertified 
     pursuant to section 103(c), a reasonable fee, as may be 
     necessary to offset the expenses of the Secretary in 
     connection with carrying out the responsibilities of the 
     Secretary under this title, including--
       (A) costs of developing, implementing, and carrying out the 
     program under this title; and
       (B) costs of providing for precertification pursuant to 
     section 103(c) of State and regional reinsurance programs as 
     qualified reinsurance programs.
       (2) Adjustment.--The Secretary may, from time to time, 
     adjust the fee under paragraph (1) as appropriate based on 
     expenses of the Secretary referred to in such paragraph.
       (3) Use.--Any fees collected pursuant to this subsection 
     shall be credited as offsetting collections of the Department 
     of the Treasury and shall be available to the Secretary only 
     for expenses referred to in paragraph (1).
       (b) Costs of Loans; Administrative Costs.--To the extent 
     that amounts of negative credit subsidy are received by the 
     Secretary in any fiscal year pursuant to loans made under 
     this title, such amounts shall be available for costs (as 
     such term is defined in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a)) of such loans and for 
     costs of carrying out the program under this title for such 
     loans.
       (c) Full Taxpayer Repayment.--The Secretary shall require 
     the full repayment of all loans made under this title. If the 
     Secretary determines at any time that such full repayment 
     will not made, or is likely not to be made, the Secretary 
     shall promptly submit a report to the Congress explaining why 
     such full repayment will not be made or is likely not to be 
     made.
                                 ______
                                 
  SA 4710. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 8, line 6, strike ``and''.
       On page 8, line 9, strike ``policy.''.'' and insert the 
     following: ``policy; and
       ``(3) any property purchased on or after the date of 
     enactment of the Flood Insurance Reform and Modernization Act 
     of 2007.''.
                                 ______
                                 
  SA 4711. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 2284, to amend the National Flood Insurance Act of 
1968, to restore the financial solvency of the flood insurance fund, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

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

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

[[Page S3836]]

                                 ______
                                 
  SA 4712. Mr. REID (for himself and Mr. McConnell) proposed an 
amendment to the bill H.R. 5493, to provide that the usual day for 
paying salaries in or under the House of Representatives may be 
established by regulations of the Committee on House Administration; as 
follows:

       At the end of the bill, insert the following:

     SEC. __. TECHNICAL AMENDMENT RELATING TO SENATE PAY PERIODS.

       (a) Title 18.--Section 207(e)(7) of title 18, United States 
     Code, is amended--
       (1) in subparagraph (A), by striking ``at least 60 days'' 
     and inserting ``more than 2 months''; and
       (2) in subparagraph (B), by striking ``at least 60 days'' 
     and inserting ``more than 2 months''.
       (b) Senate Rules.--Paragraph 9(c) of rule XXXVII of the 
     Standing Rules of the Senate is amended by striking ``more 
     than 60 days in a calendar year'' and inserting ``more than 2 
     months, in the aggregate, during the 1-year period before 
     that former officer's or employee's service as such officer 
     or employee was terminated''.

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