[Congressional Record Volume 158, Number 70 (Wednesday, May 16, 2012)]
[House]
[Pages H2782-H2787]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL FLOOD INSURANCE PROGRAM EXTENSION ACT
Mrs. BIGGERT. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 5740) to extend the National Flood Insurance Program, and
for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5740
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Flood Insurance
Program Extension Act''.
SEC. 2. EXTENSION OF PROGRAM.
(a) In General.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``the earlier of the date of the enactment into law of an Act
that specifically amends the date specified in this section
or May 31, 2012'' and inserting ``June 30, 2012''.
(b) Financing.--Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``the earlier of the date of the enactment into law
of an Act that specifically amends the date specified in this
section or May 31, 2012'' and inserting ``June 30, 2012''.
SEC. 3. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY
PURCHASE REQUIREMENT.
Section 102(b) of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``lending institutions not to make'' and
inserting ``lending institutions--
``(A) not to make'';
(B) in subparagraph (A), as designated by subparagraph (A)
of this paragraph, by striking ``less.'' and inserting
``less; and''; and
(C) by adding at the end the following new subparagraph:
``(B) to accept private flood insurance as satisfaction of
the flood insurance coverage requirement under subparagraph
(A) if the coverage provided by such private flood insurance
meets the requirements for coverage under such
subparagraph.'';
(2) in paragraph (2), by inserting after ``provided in
paragraph (1).'' the following new sentence: ``Each Federal
agency lender shall accept private flood insurance as
satisfaction of the flood insurance coverage requirement
under the preceding sentence if the flood insurance coverage
provided by such private flood insurance meets the
requirements for coverage under such sentence.'';
(3) in paragraph (3), in the matter following subparagraph
(B), by adding at the end the following new sentence: ``The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall accept private flood
insurance as satisfaction of the flood insurance coverage
requirement under the preceding sentence if the flood
insurance coverage provided by such private flood insurance
meets the requirements for coverage under such sentence.'';
and
(4) by adding at the end the following new paragraph:
``(5) Private flood insurance defined.--In this subsection,
the term `private flood insurance' means a contract for flood
insurance coverage allowed for sale under the laws of any
State.''.
SEC. 4. PRIVATIZATION INITIATIVES.
(a) FEMA and GAO Reports.--Not later than the expiration of
the 18-month period beginning on the date of the enactment of
this Act, the Administrator of the Federal Emergency
Management Agency and the Comptroller General of the United
States shall each conduct a separate study to assess a broad
range of options, methods, and strategies for privatizing the
national flood insurance program and shall each 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 with recommendations for the best
manner to accomplish such privatization.
(b) Private Risk-Management Initiatives.--
(1) Authority.--The Administrator of the Federal Emergency
Management Agency may carry out such private risk-management
initiatives under the national flood insurance program as the
Administrator considers appropriate to determine the capacity
of private insurers, reinsurers, and financial markets to
assist communities, on a voluntary basis only, in managing
the full range of financial risks associated with flooding.
(2) Assessment.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act, the Administrator shall assess the capacity of the
private reinsurance, capital, and financial markets by
seeking proposals to assume a portion of the program's
insurance risk and submit to the Congress a report describing
the response to such request for proposals and the results of
such assessment.
(3) Protocol for release of data.--The Administrator shall
develop a protocol to provide for the release of data
sufficient to
[[Page H2783]]
conduct the assessment required under paragraph (2).
(c) Reinsurance.--The National Flood Insurance Act of 1968
is amended--
(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by
inserting ``, including as reinsurance of insurance coverage
provided by the flood insurance program'' before ``, on such
terms'';
(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by
inserting ``or reinsurance'' after ``flood insurance
coverage'';
(3) in section 1335(a) (42 U.S.C. 4055(a))--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding at the end the following new paragraph:
``(2) The Director is authorized to secure reinsurance
coverage of coverage provided by the flood insurance program
from private market insurance, reinsurance, and capital
market sources at rates and on terms determined by the
Director to be reasonable and appropriate in an amount
sufficient to maintain the ability of the program to pay
claims and that minimizes the likelihood that the program
will utilize the borrowing authority provided under section
1309.'';
(4) in section 1346(a) (12 U.S.C. 4082(a))--
(A) in the matter preceding paragraph (1), by inserting ``,
or for purposes of securing reinsurance of insurance coverage
provided by the program,'' before ``of any or all of'';
(B) in paragraph (1)--
(i) by striking ``estimating'' and inserting
``Estimating''; and
(ii) by striking the semicolon at the end and inserting a
period;
(C) in paragraph (2)--
(i) by striking ``receiving'' and inserting ``Receiving'';
and
(ii) by striking the semicolon at the end and inserting a
period;
(D) in paragraph (3)--
(i) by striking ``making'' and inserting ``Making''; and
(ii) by striking ``; and'' and inserting a period;
(E) in paragraph (4)--
(i) by striking ``otherwise'' and inserting ``Otherwise'';
and
(ii) by redesignating such paragraph as paragraph (5); and
(F) by inserting after paragraph (3) the following new
paragraph:
``(4) Placing reinsurance coverage on insurance provided by
such program.''; and
(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by
inserting before the semicolon at the end the following: ``,
is subject to the reporting requirements of the Securities
Exchange Act of 1934, pursuant to section 13(a) or 15(d) of
such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the
Director to assume reinsurance on risks insured by the flood
insurance program''.
(d) Assessment of Claims-Paying Ability.--
(1) Assessment.--Not later than September 30 of each year,
the Administrator of the Federal Emergency Management Agency
shall conduct an assessment of the claims-paying ability of
the national flood insurance program, including the program's
utilization of private sector reinsurance and reinsurance
equivalents, with and without reliance on borrowing authority
under section 1309 of the National Flood Insurance Act of
1968 (42 U.S.C. 4016). In conducting the assessment, the
Administrator shall take into consideration regional
concentrations of coverage written by the program, peak flood
zones, and relevant mitigation measures.
(2) Report.--The Administrator shall submit a report to the
Congress of the results of each such assessment, and make
such report available to the public, not later than 30 days
after completion of the assessment.
SEC. 5. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE
OPTIONS.
(a) Studies.--The Administrator of the Federal Emergency
Management Agency and the Comptroller General of the United
States shall each conduct a separate study to assess options,
methods, and strategies for offering voluntary community-
based flood insurance policy options and incorporating such
options into the national flood insurance program. Such
studies shall take into consideration and analyze how the
policy options would affect communities having varying
economic bases, geographic locations, flood hazard
characteristics or classifications, and flood management
approaches.
(b) Reports.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act,
the Administrator of the Federal Emergency Management Agency
and the Comptroller General of the United States shall each
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 on the results and
conclusions of the study such agency conducted under
subsection (a), and each such report shall include
recommendations for the best manner to incorporate voluntary
community-based flood insurance options into the national
flood insurance program and for a strategy to implement such
options that would encourage communities to undertake flood
mitigation activities.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Illinois (Mrs. Biggert) and the gentleman from Georgia (Mr. David
Scott) each will control 20 minutes.
The Chair recognizes the gentlewoman from Illinois.
General Leave
Mrs. BIGGERT. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to add extraneous materials on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Illinois?
There was no objection.
{time} 1740
Mrs. BIGGERT. Madam Speaker, I yield myself such time as I may
consume.
I rise today to ask my colleagues for their support of H.R. 5740, the
National Flood Insurance Program Extension Act.
The program is set to expire on May 31, and this critical legislation
will spare property owners and the housing market from another lapse in
the NFIP. It extends the National Flood Insurance Program's
authorization for 30 days, until June 30. In addition, it would
initiate several noncontroversial reforms to develop private sector
options in the flood insurance market.
Like many of my colleagues--especially my good friend and cosponsor
of both this bill and our long-term reauthorization, the gentlelady
from California, Maxine Waters--I am frustrated that the House must
consider yet another short-term extension. It has been 10 months since
the House sent H.R. 1309, a comprehensive, bipartisan reform and a 5-
year reauthorization measure, to the Senate.
Our Committee on Financial Services approved H.R. 1309 by a unanimous
vote of 54 0 in the committee, and it passed on the House floor by a
vote of 406 22. As part of that process, we secured the input and
support of groups representing the views of everyone from taxpayers to
businesses to wildlife defenders. And yet, after five additional short-
term extensions, the Senate has still not considered any legislation to
reform the NFIP. Instead, all we hear are excuses and rumors--that the
administration doesn't want Congress to look productive, that floor
time in the Senate is too precious, or that Senate leaders simply don't
want to deal with possibly difficult amendments.
The time for excuses has run out. This program is more than $17
billion in debt to the taxpayers. We owe it to the homeowners, to the
housing market, and to taxpayers to begin the process of fixing this
program, even if we must do it 30 days at a time.
Today, we are sending to the Senate H.R. 5740. Should the Senate pass
this short-term extension bill, it will have around 6 weeks from today
to take up a flood reform measure and send it to the House. In the
meantime, this 30-day extension will initiate key elements of our
bipartisan House-passed reforms. It opens the door to private sector
participation by asking FEMA and the GAO to study the cost and
feasibility of private reinsurance, as well as the private market's
capacity to provide new options for homeowners. It also says that
private insurance coverage can take the place of government coverage to
meet the requirements of lenders in flood-prone areas. The sooner we
begin making these changes, the sooner taxpayers can stop bearing the
full expense and risk of an outdated flood program.
Over the next 6 weeks, the Senate will have more than enough time to
pass long-term reform. Again, last July, the House passed H.R. 1309 by
an overwhelmingly bipartisan vote, 406 22. The House then sent this
text to the Senate two additional times. In December, the House passed
flood reform as part of H.R. 3630, the Middle Class Tax Relief and Job
Creation Act, and last week the House passed the same flood measure as
part of H.R. 5652, the Reconciliation Act.
But this isn't like other partisan battles. It should not be that
difficult. Even the White House is with us. In September 2011,
President Obama released a statement in support of our reforms as part
of his ``Plan for Economic Growth and Debt Reduction'' because the
House bill would spare taxpayers from billions in losses.
Senate Banking Committee Chairman Johnson has secured committee
approval of his own version, S. 1940, along with strong bipartisan
support. And in February, 41 Senators--Republicans and Democrats--sent
a letter to Senate leadership asking that Senate leaders Reid and
McConnell schedule
[[Page H2784]]
flood insurance reform for floor consideration.
There is simply no reason that in the next few days we cannot sit
down and reconcile any differences that remain between the House and
Senate visions for flood reform, and today's legislation will give the
Senate time to make that a possibility. It will also begin the process
of fixing the NFIP and protecting taxpayers from unnecessary risk.
I urge my colleagues to support this bill because this program is too
important to let lapse and too in debt to continue without reform.
With that, I reserve the balance of my time.
Mr. DAVID SCOTT of Georgia. Madam Speaker, I yield myself such time
as I may consume.
The National Flood Insurance Program plays a very, very key role in
our Nation's efforts to prevent and recover from flood disasters.
Floods are now the number one natural disaster in the United States in
terms of lives lost and property damaged.
Now, here is exactly what the National Flood Insurance Program does:
First, it identifies areas of flood risk; secondly, it encourages
communities to implement measures to mitigate against the risk of flood
loss; thirdly, it provides financial assistance to help individuals
recover more rapidly from flooding disasters, and it lessens the
financial impact of flood disasters on individuals, on businesses, and
all levels of government.
In recent years, a series of short-term reauthorizations and
temporary suspensions of the NFIP have eroded confidence in the program
among our stakeholders--including State government, tribal governments,
local communities, individual policyholders, mortgage lenders, and the
private insurance industry. In addition to disrupting the program's
day-to-day operations, short-term reauthorizations and temporary
suspensions--like what we're doing here in 30 days--creates significant
uncertainty regarding the Federal Government's long-term commitment to
underwriting and indemnifying flood losses. So in the absence of such a
commitment, our stakeholders are less likely to make the necessary
investments that are needed to successfully sustain, strengthen, and
grow the program, thereby undermining the program's effectiveness and
efficiency over time.
As my colleague, Mrs. Biggert, mentioned earlier, Congress last
passed a bill to extend the National Flood Insurance Program
authorization on December 23, 2011--5 months ago--as a part of the
full-year omnibus appropriations bill for fiscal year 2012. Even prior
to this action, we in the House took decisive action to extend the
flood insurance program the way it should be by approving a 5-year
flood insurance reform reauthorization bill last July that passed this
House on a strongly bipartisan Republican and Democratic vote of 406
22.
Unfortunately, the National Flood Insurance Program is set now to
expire May 31, just over 2 weeks from today, and guess what? June 1
also happens to mark the official start of the hurricane season in this
country. This lets you know how we have got to put pressure on the
Senate to act responsibly. Here we are attempting to pass a 30-day
extension just 2 weeks before the devastating hurricane season starts.
Urgency is necessary here. This is why reauthorizing of the National
Flood Insurance Program before it expires is essential to our Nation's
efforts to prevent and recover from flood disasters.
So I'm pleased that the bill that we have before us does extend the
program for 30 days, but it is not a perfect bill, as I said. I believe
that many in this Chamber--just about everybody in the House of
Representatives--would prefer to see the Senate take up and pass our
bill for the 5-year extension, H.R. 1309. Short of that, I believe that
many on our side would prefer to take up a flood extension bill that
will provide a clean extension.
In addition, there is the possibility--count it, with 2 weeks to go,
who knows--the Senate simply may not agree to an extension that only
runs 30 days and includes authorization provisions. We just learned
last evening that the junior Senator from Oklahoma, Senator Tom Coburn,
objected to the majority leader's request to take up and approve a
clean, short-term extension bill that would extend the program until
December 31, 2012. So here we are, 2 weeks before the hurricane season
starts, and the flood program runs out, and still no action from the
Senate.
{time} 1750
I think it is also important to note that while this body repeatedly
has voiced concern with spending, particularly with spending that is
not offset with cuts, the Congressional Budget Office has indicated
this bill will cost $2 million over 5 years, an amount that is not
offset in this bill.
Despite some of these shortcomings, I believe it is of utmost
importance that we avoid any lapse in the program. Any lapse,
regardless of the duration, would cause significant dislocation in our
very fragile housing market for borrowers unable to complete mortgage
closings, for insurance agents that sell national flood insurance
policies as a part of their business, and for insurance companies that
may be forced to reevaluate their voluntary participation, our National
Flood Insurance Program's own Write Your Own program. All are very
vital.
Finally, we have a broad coalition of stakeholders who support the
bill, who support the 5-year extension, including industry insurance
trade groups, floodplain managers, the Realtors who are holding their
annual conference in Washington, D.C., this week, many other groups. In
addition, FEMA's Administrator, Mr. Craig Fugate, recently sent a
letter to Congress urging approval of the extension. So here we are,
we've got to pass this 30-day extension.
In conclusion, I just want to add that, thanks to Mrs. Biggert and to
Ms. Waters, we were able to do something that was vitally needed. As
many of you know, my State of Georgia was devastated with floods; and
one of the things that did come out of this is, during the hardship
times, very difficult for individuals to pay for the flood insurance in
a lump sum. As we have made part of our extension effort, they can now
pay in quarterly installments, and that's a great thing.
With that, I reserve the balance of my time.
Mrs. BIGGERT. Madam Speaker, I yield 3 minutes to the gentleman from
Alabama (Mr. Bachus), the chairman of the Financial Services Committee.
Mr. BACHUS. I thank the gentlelady.
We're here on the floor discussing this bill for one reason and for
one reason only, and that's that the Senate has not done their job.
Ten months ago, Madam Speaker, this House passed a bipartisan, long-
term reauthorization of the National Flood Insurance Program. Our bill
passed unanimously out of committee and then passed the House,
overwhelmingly, with over 400 votes, Democrats and Republicans joining
together.
Our bill not only included a 5-year reauthorization of the program, a
long-term reauthorization, which is what's needed, but included many
needed reforms that reduce the burden on taxpayers, increase private
market participation, and help bring certainty to the housing market.
We did our job, Madam Speaker, but the Senate's failed to do their
job. Seventeen temporary extensions. Perhaps none of us should be
surprised. After all, it's been 3 years since the Senate even bothered
to pass a budget. Not to mention, at a time when millions of Americans
are out of work, the Senate has failed to vote on 27 job-creating bills
we passed out of the House, overwhelmingly.
Now Majority Leader Harry Reid has failed to find time to schedule
floor time, even though the Senate, under the leadership of Chairman
Johnson and Ranking Member Shelby, unanimously passed a bill almost
identical to the bill we passed 10 months ago.
But because of a dysfunctional Senate that's not working, we're once
again faced with the risk of having the flood insurance shut down, as
the gentleman from Georgia said, right before hurricane season starts.
I can't think of a worse time. A shutdown of flood insurance, even a
temporary one, would do tremendous damage to our struggling economy and
our Nation's fragile housing market.
Specifically, what does it mean? I'd like to introduce a letter from
the National Association of Realtors. It is already delaying close to
1,300 house closings every day. If it expires, it will
[[Page H2785]]
stop all development dead in its tracks in 21,000 communities across
America.
Let me close by saying I want to commend our colleague, Mrs. Biggert.
Congresswoman Biggert has done an exceptional job on this important
issue. I'd like to commend Congresswoman and Ranking Member Maxine
Waters. They've worked, over the last year, for a long-term
reauthorization. We've come together and done our job.
I would like to commend the Senate, but, unfortunately, the Senate is
not working. It's time for the Senate to pass a 5-year bill, and it's
time for them to pass it immediately. That's why, although we have
passed a 5-year reauthorization, we're here. But we're only passing a
1-month extension because the best they can do is another extension--
number 17--which would put it into December, when we all know that's a
lame duck Congress and we're going to be confronted with tremendous
other issues at that time.
To the Senate I say: Let's get going.
National Association of Realtors,'
Washington, DC, May 16, 2012.
Hon. Spencer Bachus,
Chairman, House Committee on Financial Services, House of
Representatives, Rayburn Building, Washington, DC.
Dear Chairman Bachus: The 1 million members of the National
Association of REALTORS' supports a temporary
extension of National Flood Insurance Program (NFIP)
authority to enable the Senate to finish work on its long-
term reauthorization and reform measure (S. 1940). The House
is scheduled to vote on H.R. 5740 to extend authority by 30
days to June 30, 2012. We urge a yes vote.
NFIP authority is set to expire on May 31, 2012.
Consequently, property buyers in more than 21,000 communities
across the United States will no longer be able to obtain the
flood insurance required by law for the purchase of a home or
building. Each day that program authority lapses, more than
1,300 home sales will be delayed or cancelled. Allowing
another lapse only exacerbates the many serious economic
challenges facing a nation that relies on a vibrant real
estate market for its economy.
Homebuyers, small business owners and local communities
urge the House to vote yes on H.R. 5740 to keep the NFIP from
lapsing. Your vote to extend authority will avoid further
market disruption while Congress works toward long-term
reauthorization and reform.
Sincerely,
Maurice ``Moe'' Veissi,
2012 President, National Association
of REALTORS'.
Mr. DAVID SCOTT of Georgia. I yield 2 minutes to the distinguished
gentlewoman from California (Ms. Waters).
Ms. WATERS. I'd like to thank Representative Scott for his leadership
on this issue. I'd like to thank Chairman Bachus for his support for
all of the work that has gone into flood insurance reform.
I rise today in support of H.R. 5740, the National Flood Insurance
Program Extension Act of 2012. But more than anybody, I'd like to thank
Representative Biggert for her hard work on this bill and flood
insurance reform, and I'm pleased to cosponsor this legislation.
While this bill, by no means, is a substitute for the comprehensive
set of reforms included in H.R. 1309, the Flood Insurance Reform Act, a
bipartisan bill which passed the House last year, I believe that we
must act to pass this bill so that the flood insurance program does not
lapse.
The flood insurance program provides valuable protection for
approximately 5.5 million homeowners. Unfortunately, the lack of a
long-term authorization has placed the program at risk. The program
lapsed three times in 2010. These lapses meant FEMA was not able to
write new policies, renew expiring policies, or increase coverage
limits. Given the current crisis in the housing market, this
instability in the flood insurance program is hampering that market's
recovery and must be addressed.
The current authorization for the flood insurance program expires on
May 31. The next day, hurricane season begins. It is irresponsible to
have our Nation's homeowners vulnerable to flooding at any time, but to
allow such a lapse during hurricane season is especially troubling.
Even though this bill only extends the program for 30 days, I hope
that this brief window will give our counterparts in the Senate enough
time to pass their flood insurance reform bill so that this program has
all of the resources it needs to fully serve homeowners and the
communities in which they live.
I strongly urge an ``aye'' vote on this bill in the hope that the
next flood insurance bill we vote on is a comprehensive reauthorization
bill.
Mrs. BIGGERT. Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman
from Michigan (Mrs. Miller).
Mrs. MILLER of Michigan. Mr. Speaker, I certainly appreciate the
gentlelady yielding time to me, especially because I am opposed to this
bill. I would just have one question for my colleagues, and I would ask
this: What in the world is the Federal Government doing in the national
flood insurance business?
And I would give the sponsors certainly of this legislation credit
for the fact that they're trying to reform what I think is an
unnecessary Federal Government boondoggle. But rather than reforming
this, I think we need to eliminate this program.
Let me just give you an example, Mr. Speaker.
So many of us were very strongly opposed to ObamaCare, the government
takeover of health care, because we didn't believe the Federal
Government should be running the health care for our entire Nation. But
apparently we have no problem with the Federal Government running a
National Flood Insurance Program.
This program was created in 1968. We started writing policies in
1972, and today this program is almost $18 billion in debt. And FEMA
says that this debt will never be paid for, never, never be paid off.
So not only is the Federal Government improperly running a flood
insurance program, it's operating a very bad flood insurance program.
This program is not actuarially sound. It charges some of the highest
risk areas subsidized rates and charges other areas of no risk
astronomical rates to pay for those subsidies.
{time} 1800
You can use my home State of Michigan as a great example where our
residents have been forced into this program and have been charged
thousands of dollars every year even though we have almost no risk of
flooding. In Michigan, we actually look down at the water, not up at
the water. We've paid multiple times more in premiums than we've ever
received back in benefits. In short, Mr. Speaker, the people of the
great State of Michigan are getting fleeced by this program.
Obviously, we are a compassionate Nation. When we have a case of a
natural disaster, or what have you, we need to make sure that we step
up and give relief to our fellow Americans, but what we are doing here
today is simply not fair. What we should have is a national
catastrophic fund so that everybody pays, not just some who are being
forced to subsidize others. That is not fair.
So, Mr. Speaker, I would hope that my colleagues would join me in
rejecting the reauthorization of the National Flood Insurance Program
so that we can get to work on a way to allow the private marketplace to
move in and to replace it.
Mr. DAVID SCOTT of Georgia. I yield 2 minutes to the gentleman from
Texas (Mr. Hinojosa).
Mr. HINOJOSA. Thank you, Congressman Scott.
Mr. Speaker, I rise today in strong support of the National Flood
Insurance Program, and I urge support on both sides of the aisle for
the 30-day extension today, H.R. 5740.
I would like to thank my friend, Congresswoman Maxine Waters from
California, and my esteemed colleague, Congresswoman Judy Biggert of
Illinois, for their work on this bill and on H.R. 1309, which I proudly
cosponsored. Ideally, we should be increasing certainty for homeowners
by reauthorizing the program for 5 years, as effected by H.R. 1309,
which passed the House last July with over 400 votes. Now it waits for
Senate action. I respectfully urge our counterparts in the Senate to
pass a longer-term authorization.
Since 2008, the National Flood Insurance Program has operated on
several short-term extensions, which only increase uncertainty in the
housing market. As hurricane season approaches, Congress needs to act
with all diligence to provide stability for the housing market and to
give peace of mind to homeowners.
Mrs. BIGGERT. At this time, I yield 2 minutes to the gentleman from
Illinois (Mr. Dold), a member of the committee.
[[Page H2786]]
Mr. DOLD. I certainly want to thank my good friend from Illinois for
her leadership and for her giving me some time, and I want to thank the
ranking member, Ms. Waters, for her leadership as well.
Mr. Speaker, today I rise in strong support of H.R. 5740. The history
of American flood disasters has clearly shown us two things:
First, an effective and proactive National Flood Insurance Program
with paid-in premiums is a much better deal for taxpayers than after-
the-fact Federal disaster assistance, which was the inevitable Federal
response to flood disasters before this program's inception;
Second, any lapse in the program's authorization irreparably damages
our mortgage and real estate markets, and avoiding that irreparable
damage is particularly important right now when those markets are
already so seriously challenged.
Although reauthorization is essential, we also recognize that the
program needs meaningful reforms. We must gradually diminish taxpayer
exposure to flood losses while improving the program's solvency and
self-sufficiency; and we must work with the private sector to expand
its role in protecting against flood disasters.
Under Chairwoman Biggert's leadership, a long-term reauthorization
bill with these necessary reforms, H.R. 1309, passed out of the
Financial Services Committee unanimously, 54 0, and then the same bill
received nearly unanimous bipartisan support right down here where over
400 Members voted in its favor. With that kind of overwhelming
bipartisan support, I must say that it's a little frustrating that
we're here once again discussing a short-term reauthorization, largely
because the other body hasn't considered the long-term bill, even
though the long-term bill passed out of the Senate Banking Committee by
voice vote.
One thing that seems clear is that the strategy of short-term
authorizations, the corresponding temporary program lapses and
uncertainty do not work to minimize taxpayer risk or to expand the
private sector's role, but we must deal with the existing realities. To
properly reform and strengthen this program, we need to reauthorize
this program on a long-term basis, and we need to do so promptly; but
the Senate hasn't acted, and we can't tolerate any lapse in the
program.
So I strongly urge my colleagues to support H.R. 5740, which will
avoid a destructive program lapse while we continue to work towards a
long-term authorization.
Mr. DAVID SCOTT of Georgia. I yield myself such time as I may consume
to respond very briefly.
There is a great urgency here. There is a very serious cry coming
from the American people. That cry is saying, Help us, and the kind of
help we need is to prepare for the storm before the hurricane is
raging.
We live in storm alley. Now, I can tell you from firsthand experience
that I represent a district in the State of Georgia where in 2010, I
believe it was, we had the worst flood in over 500 years. I represent
the Chattahoochee River, which overflowed. I represent one county in
which we had 10 people who lost their lives, and seven of those people
were from one county in my district, in Douglas County. Cobb County had
losses. We got on, I guess we call it, Air Force Two with Vice
President Biden, and we flew down with FEMA and Homeland Security, and
we toured that place. I'm sure you all saw on CNN and Fox and MSNBC--
and on all the news stations--where Six Flags Over Georgia, the
amusement park, was totally under water.
So I can speak for my community and my area as those of us in the
House have spoken--over 400 strong. Why in the world the United States
Senate is sitting on the reauthorization is a mystery amidst the cry
coming from the American people. Now our season is on us. Hurricane
season starts in 2 weeks.
Let me just tell you that I've heard from one of the individuals on
the other side, and I wanted to respond to some of those concerns as to
why this bill is so important.
Our reauthorization bill would require annual notifications to
homeowners who are living in flood zones about the risks in their
communities. Many people move into these areas, and they don't even
know they're in flood zones. What we've got in this bill is that they
will be notified every year. They need that information so they can
make the adjustments. I mentioned the affordable insurance coverage. I
need not mention the flood maps, themselves, many of which all
throughout this country are outdated, that leave many of your
constituents and my constituents--I hope the Senate is hearing because
they're their constituents as well--at risk for flood damage without
even their knowledge.
Let's hope that this message gets across to the Senate that we need
action. The American people are crying for help, and we need to give it
to them immediately. We've got 2 weeks to do it, and we dare not let
this hurricane season come upon us with the National Flood Insurance
Program's having expired.
I reserve the balance of my time.
Mrs. BIGGERT. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Wisconsin (Mr. Duffy), a member of the Financial Services
Committee.
Mr. DUFFY. I first want to recognize the gentlelady from Illinois
(Mrs. Biggert) and the gentlelady from California (Ms. Waters) for
their great and hard work on the reauthorization of the National Flood
Insurance Program.
While I rise today in support of this short-term extension, I have to
be frank and honest and tell you that I am disappointed that we haven't
found both Chambers coming together to reauthorize this program for 5
years. What this does is to create uncertainty in the market. For the
individual who may have a home in a floodplain or for a community that
has many of its pieces of property in a floodplain, without having a
long-term bill, it creates uncertainty for them.
{time} 1810
It creates uncertainty in the housing market, which has obviously
gone through some very strenuous times since the 2008 financial crisis.
This legislation, a long-term fix, would help breed certainty in that
market as well.
As we look back at last summer, we passed this legislation with both
sides of the aisle coming together. It doesn't happen very often. It
was one of those great moments in the House where it was a vote of 406
22. Both Republicans and Democrats joined hands in passing this
legislation. Now we're just waiting for the Senate to act. It's a bill
that's going to save $4.2 billion over the course of 10 years. It
includes reforms that are going to save taxpayers money by eliminating
unnecessary rate subsidies and encouraging the development of a private
flood insurance market.
I support the short-term extension, but I also encourage the Senate
to act.
Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my
time. I would inquire if the lady from Illinois has any more speakers.
Mrs. BIGGERT. I think we have just one more speaker.
At this time, I yield 1\1/2\ minutes to the gentleman from
Mississippi (Mr. Palazzo).
Mr. PALAZZO. Mr. Speaker, once again we find that good legislation
that was passed by the House has been taken hostage by the Senate.
As we approach yet another deadline on the reauthorization of the
National Flood Insurance Program, the Senate is refusing to take up our
long-term solution.
Ten months ago, we passed a 5-year bill that would bring much needed
certainty and stability to the people depending on this program. The
short-term package before us today fails to provide a long-term
solution to a very real long-term problem.
NFIP provides flood insurance to more than 20,000 communities across
this Nation, including more than 50,000 families in my district. Many
of my constituents in Mississippi are still dealing with the effects of
Hurricane Katrina. They have experienced record flooding in recent
years, and we are fast approaching another hurricane season. We have no
other choice. We must act now. It is out of necessity that I support
this short-term extension, but we must remain focused on a longer-term
solution for the sake of those in the Gulf Coast States and high-risk
flood areas. They depend on the National Flood Insurance Program.
Between now and the next time this extension expires, I urge my
colleagues in the Senate to revisit and embrace H.R. 1309, our 5-year
solution.
[[Page H2787]]
Mr. DAVID SCOTT of Georgia. Mr. Speaker, I will close with my
remarks.
I'm hoping that perhaps Members of the Senate may be watching C SPAN
and watching us in the House. If not, I just simply urge their
constituents to give them a call and ask them to move. It would be
great to move on H.R. 1309. Because even if you do this temporary one,
it's 30 days and we're right back here in another 4 weeks at the time
that hurricanes are raging. We are really playing with fire here, and
we're not doing the American people justice, and we're not doing right
here.
As the gentleman from Louisiana just mentioned, vivid in our minds
has got to be Katrina. We can talk about Andrew in Florida or you can
talk about Hazel up in New York. Our whole country is coastline, and
flooding is the worst natural disaster in our country in terms of loss
of life, in terms of property. Folks need this financial assistance
from this flood insurance program.
I urge my colleagues in the Senate to move and do the right thing. I
urge the American people to contact their Senators and let them know we
do not need to be standing naked in the face of fierce hurricanes
without help and without support simply because the United States
Senate failed to act in the best interest of the American people.
With that, I yield back the balance of my time.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Ross of Florida). Members are reminded
to direct their remarks to the Chair and not to a perceived viewing
audience.
Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
I thank the gentleman from Georgia (Mr. Scott) for managing this bill
and for all of his mention of how important this is. I also would again
like to thank the gentlelady from California (Ms. Waters) for being a
cosponsor.
Mr. Speaker, I wish we did not have to be here on the floor once
again with a short-term extension of the NFIP, but this program is too
important to homeowners, to the housing market, and to the communities
in the flood-prone areas for Congress to let it expire at the end of
the month. It is also too in debt to continue without reform. And
despite our best efforts in the House, the Senate has been unwilling or
unable to pass a long-term NFIP reauthorization and reform bill.
As has been mentioned over and over, the House passed our 5-year NFIP
reauthorization reform bill, H.R. 1309, last July with an overwhelming
bipartisan majority of more than 400 votes. It also won unanimous
support in the Financial Services Committee. But the Senate has not yet
approved any version of flood reform. So here we are once again on the
verge of a lapse in NFIP.
Mr. Speaker, the time has come to stop playing games with this
important program and start enacting long-term reforms now. With
today's bill, we begin that process. First, it extends the program for
an additional month to spare property owners and the housing market
from another lapse. In addition, it would initiate several
noncontroversial reforms to develop private sector options in the flood
insurance market. This is all part of the 5-year bill that we have.
Reforming the NFIP is simply too important to ignore. Our extension
will give the Senate time to act, and it will begin the process of
fixing NFIP to protect taxpayers from unnecessary risk.
With that, I urge my colleagues to support H.R. 5740, and I yield
back the balance of my time.
Mr. HASTINGS of Florida. Mr. Speaker, I rise to express my
disappointment that this House is once again considering a short-term
extension to the National Flood Insurance Program.
It has been nearly ten years since the program was last reauthorized,
and the need for reauthorization has only grown more pressing. While a
lapse in the program would be detrimental to countless homeowners, the
program cannot continue to be sustained through a patchwork of short-
term extensions.
Last July, the House of Representatives passed a long-term extension
of the program with broad bipartisan support. Shortly after, the Senate
Banking Committee reported its own reauthorization which is now simply
gathering dust in the Senate. With the start of hurricane season only
weeks away, now is not the time for the Senate's typical complacency.
Floods affect every state in the Union, and all Americans deserve the
comfort of knowing they will be able to continue to benefit from the
security that the National Flood Insurance Program has provided
homeowners and lending institutions since 1968.
This program must be modernized and reformed to meet the realities of
American homeowners and taxpayers. I urge my Senate colleagues to
swiftly bring their reauthorization bill to the floor so that we can
finally move a long-term reauthorization forward.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Illinois (Mrs. Biggert) that the House suspend the
rules and pass the bill, H.R. 5740.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. DAVID SCOTT of Georgia. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
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