[Congressional Record Volume 158, Number 96 (Monday, June 25, 2012)]
[Senate]
[Pages S4464-S4483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2468. Mr. REID (for Mr. Johnson of South Dakota (for himself and 
Mr. Shelby)) proposed an amendment to the bill S. 1940, to amend the 
National Flood Insurance Act of 1968, to restore the financial solvency 
to the flood insurance fund, and for other purposes; 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. Areas of residual risk.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Minimum deductibles for claims under the National Flood 
              Insurance Program.
Sec. 113. Considerations in determining chargeable premium rates.
Sec. 114. Reserve fund.
Sec. 115. Repayment plan for borrowing authority.
Sec. 116. Payment of condominium claims.
Sec. 117. Technical mapping advisory council.
Sec. 118. National flood mapping program.
Sec. 119. Scope of appeals.
Sec. 120. Scientific Resolution Panel.
Sec. 121. Removal of limitation on State contributions for updating 
              flood maps.
Sec. 122. Coordination.
Sec. 123. Interagency coordination study.
Sec. 124. Nonmandatory participation.
Sec. 125. Notice of flood insurance availability under RESPA.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Additional authority of FEMA to collect information on claims 
              payments.
Sec. 128. Oversight and expense reimbursements of insurance companies.
Sec. 129. Mitigation.
Sec. 130. Flood Protection Structure Accreditation Task Force.
Sec. 131. Flood in progress determinations.
Sec. 132. Clarification of residential and commercial coverage limits.
Sec. 133. Local data requirement.
Sec. 134. Eligibility for flood insurance for persons residing in 
              communities that have made adequate progress on the 
              construction, reconstruction, or improvement of a flood 
              protection system.
Sec. 135. Studies and reports.
Sec. 136. Reinsurance.
Sec. 137. GAO study on business interruption and additional living 
              expenses coverages.
Sec. 138. Policy disclosures.
Sec. 139. Report on inclusion of building codes in floodplain 
              management criteria.
Sec. 140. Study of participation and affordability for certain 
              policyholders.
Sec. 141. Study and report concerning the participation of Indian 
              tribes and members of Indian tribes in the National Flood 
              Insurance Program.
Sec. 142. Technical corrections.
Sec. 143. Private flood insurance policies.

    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 III--ALTERNATIVE LOSS ALLOCATION

Sec. 301. Short title.
Sec. 302. Assessing and modeling named storms over coastal States.
Sec. 303. Alternative loss allocation system for indeterminate claims.

           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 2012''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) the flood insurance claims resulting from the hurricane 
     season of 2005 exceeded 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 $19,000,000,000 from the 
     Treasury;
       (3) the interest alone on this debt has been as high as 
     $800,000,000 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) events throughout the country involving areas behind 
     flood control structures, known as ``residual risk'' areas, 
     have produced catastrophic losses;
       (7) although such flood control 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) 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.
       (2) 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.
       (3) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Emergency Management Agency.
       (4) 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.).
       (5) Write your own.--The term ``Write Your Own'' means the 
     cooperative undertaking between the insurance industry and 
     the Federal 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).

[[Page S4465]]

     SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Financing.--Section 1309(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
     striking ``July 31, 2012'' and inserting ``September 30, 
     2017''.
       (b) Program Expiration.--Section 1319 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
     ``July 31, 2012'' and inserting ``September 30, 2017''.

     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--
       (1) in subsection (b)(2)(A), by inserting ``not described 
     in subsection (a) or (d)'' after ``properties''; and
       (2) by adding at the end the following:
       ``(d) Availability of Insurance for Multifamily 
     Properties.--
       ``(1) In general.--The Administrator shall make flood 
     insurance available to cover residential properties of 5 or 
     more residences. Notwithstanding any other provision of law, 
     the maximum coverage amount that the Administrator 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 5 or more residences 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)(2), by striking ``for any residential 
     property which is not the primary residence of an individual; 
     and'' and inserting the following: ``for--
       ``(A) any residential property which is not the primary 
     residence of an individual;
       ``(B) any severe repetitive loss property;
       ``(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; or
       ``(E) any property which on or after the date of enactment 
     of the Flood Insurance Reform and Modernization Act of 2012 
     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''; and
       (B) by adding at the end the following:
       ``(g) No Extension of Subsidy to New Policies or Lapsed 
     Policies.--The Administrator 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 2012;
       ``(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; or
       ``(3) any prospective insured who refuses to accept any 
     offer for mitigation assistance by the Administrator 
     (including an offer to relocate), including an offer of 
     mitigation assistance--
       ``(A) following a major disaster, as defined in section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122); or
       ``(B) in connection with--
       ``(i) a repetitive loss property; or
       ``(ii) a severe repetitive loss property.
       ``(h) Definition.--In this section, the term `severe 
     repetitive loss property' has the following meaning:
       ``(1) Single-family properties.--In the case of a property 
     consisting of 1 to 4 residences, such term means a property 
     that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which 4 or more separate claims payments have 
     been made under flood insurance coverage under this chapter, 
     with the amount of each such claim exceeding $5,000, and with 
     the cumulative amount of such claims payments exceeding 
     $20,000; or
       ``(ii) for which at least 2 separate claims payments have 
     been made under such coverage, with the cumulative amount of 
     such claims exceeding the value of the property.
       ``(2) Multifamily properties.--In the case of a property 
     consisting of 5 or more residences, such term shall have such 
     meaning as the Director shall by regulation provide.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall become effective 90 days after the date of enactment of 
     this Act.
       (b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 
     4014(a)(1)(B)) is amended--
       (1) in clause (ii), by striking ``and'' at the end;
       (2) in clause (iii), by adding ``and'' at the end; and
       (3) by inserting after clause (iii) the following:
       ``(iv) all costs, as prescribed by principles and standards 
     of practice in ratemaking adopted by the American Academy of 
     Actuaries and the Casualty Actuarial Society, including--

       ``(I) an estimate of the expected value of future costs,
       ``(II) all costs associated with the transfer of risk, and
       ``(III) the costs associated with an individual risk 
     transfer with respect to risk classes, as defined by the 
     Administrator,''.

       (c) 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) in the matter preceding paragraph (1)--
       (A) by striking ``or (3)''; and
       (B) by inserting ``any properties'' after ``under this 
     title for'';
       (2) in paragraph (1)--
       (A) by striking ``any properties within any single'' and 
     inserting ``within any single''; and
       (B) by striking ``10 percent'' and inserting ``15 
     percent''; and
       (3) by striking paragraph (2) and inserting the following:
       ``(2) described in subparagraphs (A) through (E) of section 
     1307(a)(2) 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).''.
       (d) Premium Payment Flexibility for New and Existing 
     Policyholders.--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) Frequency of Premium Collection.--With respect to any 
     chargeable premium rate prescribed under this section, the 
     Administrator shall provide policyholders that are not 
     required to escrow their premiums and fees for flood 
     insurance as set forth under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) with the 
     option of paying their premiums either annually or in more 
     frequent installments.''.
       (e) Rule of Construction.--Nothing in this section or the 
     amendments made by this section may be construed to affect 
     the requirement under section 2(c) of the Act entitled ``An 
     Act to extend the National Flood Insurance Program, and for 
     other purposes'', approved May 31, 2012 (Public Law 112-123), 
     that the first increase in chargeable risk premium rates for 
     residential properties which are not the primary residence of 
     an individual take effect on July 1, 2012.

     SEC. 107. AREAS OF RESIDUAL RISK.

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

     ``SEC. 1368. AREAS OF RESIDUAL RISK.

       ``(a) Definitions.--
       ``(1) Area of residual risk.--Not later than 18 months 
     after the date of enactment of the Flood Insurance Reform and 
     Modernization Act of 2012, the Administrator shall establish 
     a definition of the term `area of residual risk' for purposes 
     of the national flood insurance program that is limited to 
     areas that--
       ``(A) the Administrator determines are located--
       ``(i) behind a levee or near a dam or other flood control 
     structure; and
       ``(ii) in an unimpeded 100-year floodplain; and
       ``(B) are not areas having special flood hazards.
       ``(2) Other definitions.--In this section--
       ``(A) the term `hydrographic subdivision' means a 
     subdivision of an area of residual risk that is determined 
     based on unique hydrographic characteristics; and
       ``(B) the term `unimpeded 100-year floodplain' means that 
     area which, if no levee, dam, or other flood control 
     structure were present, would be subject to inundation from a 
     flood having a 1-percent chance of being equaled or exceeded 
     in any given year.
       ``(b) Treatment of Areas of Residual Risk.--Except as 
     otherwise provided in this section, this title, the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.), and 
     the Flood Insurance Reform and Modernization Act of 2012 
     shall apply to an area of residual risk as if it were an area 
     having special flood hazards.
       ``(c) Exemption From Floodplain Management Requirements.--A 
     State or local government with jurisdiction of an area of 
     residual risk (or subdivision thereof) shall not be required 
     to adopt land use and control measures in the area of 
     residual risk (or subdivision thereof) that are consistent 
     with the comprehensive criteria for land management and use 
     developed by the Administrator under section 1361.
       ``(d) Pricing in Areas of Residual Risk.--In carrying out 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a), the Administrator shall ensure that the risk 
     premium rate for flood insurance policies for a hydrographic 
     subdivision does not exceed a rate that adequately reflects--
       ``(1) the level of flood protection provided to the 
     hydrographic subdivision by any levee, dam, or other flood 
     control structure, regardless of the certification status of 
     the flood control structure; and
       ``(2) any historical flooding event in the area.
       ``(e) Waiver of Mandatory Purchase Requirements for De 
     Minimis Risk.--The requirements under sections 102 and 202 of 
     the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a 
     and 4106) shall not apply to any

[[Page S4466]]

     property in an area of residual risk for which the risk 
     premium, as established in accordance with subsection (d), is 
     less than the equivalent of $1 per day, as determined by the 
     Administrator.
       ``(f) Decertification.--Upon decertification of any levee, 
     dam, or flood control structure under the jurisdiction of the 
     United States Army Corps of Engineers, the Chief of Engineers 
     shall immediately provide notice to the Administrator.''.
       (b) Definition.--In this section, the term ``area of 
     residual risk'' has the meaning given that term under section 
     1368 of the National Flood Insurance Act of 1968, as added by 
     this section.
       (c) Effective Date for Mandatory Purchase Requirement.--The 
     requirements under sections 102 and 202 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a and 4106) shall not 
     apply to any area of residual risk, until--
       (1) the Administrator submits to Congress a certification 
     that the Administrator has completed a study of levels of 
     flood risk that provides adequate methodologies for the 
     Administrator to estimate varying levels of flood risk for 
     areas of residual risk;
       (2) the mapping of all areas of residual risk in the United 
     States that are essential in order to administer the National 
     Flood Insurance Program, as required under section 118 of 
     this Act, is in the maintenance phase; and
       (3) in the case of areas of residual risk behind levees, 
     the Administrator submits to Congress a certification that 
     the Administrator is able to adequately estimate varying 
     levels of residual risk behind levees based on--
       (A) the design of the levees;
       (B) the soundness of the levees;
       (C) the hydrography of the areas of residual risk; and
       (D) appropriate consideration of historical flooding events 
     in the areas of residual risk.
       (d) Study and Report on Mandatory Purchase Requirements in 
     Residual Risk Areas.--
       (1) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study assessing the impact and 
     effectiveness of applying the mandatory purchase requirements 
     under sections 102 and 202 of the Flood Disaster Protection 
     Act of 1973 (42 U.S.C. 4012a and 4106) to properties located 
     in areas of residual risk.
       (B) Areas of study.--In carrying out the study required 
     under subparagraph (A), the Comptroller General shall 
     evaluate--
       (i) the regulatory, financial, and economic impact of 
     applying the mandatory purchase requirements described in 
     subparagraph (A) to areas of residual risk on--

       (I) the costs of homeownership;
       (II) the actuarial soundness of the National Flood 
     Insurance Program;
       (III) the Federal Emergency Management Agency;
       (IV) communities located in areas of residual risk;
       (V) insurance companies participating in the National Flood 
     Insurance Program; and
       (VI) the Disaster Relief Fund;

       (ii) the effectiveness of the mandatory purchase 
     requirements in protecting--

       (I) homeowners and taxpayers in the United States from 
     financial loss; and
       (II) the financial soundness of the National Flood 
     Insurance Program;

       (iii) the impact on lenders of complying with or enforcing 
     the mandatory purchase requirements;
       (iv) the methodology that the Administrator uses to 
     adequately estimate the varying levels of residual risk 
     behind levees and other flood control structures; and
       (v) the extent to which the risk premium rates under the 
     National Flood Insurance Program for property in the areas of 
     residual risk behind levees adequately account for--

       (I) the design of the levees;
       (II) the soundness of the levees;
       (III) the hydrography of the areas of residual risk; and
       (IV) any historical flooding in the areas of residual risk.

       (2) Reports.--
       (A) Initial report.--Not later than 12 months after the 
     effective date described in subsection (c), the Comptroller 
     General shall submit to Congress a report that--
       (i) contains the results of the study required under 
     paragraph (1); and
       (ii) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.
       (B) Updated report.--Not later than 5 years after the date 
     on which the Comptroller General submits the report under 
     subparagraph (A), the Comptroller General shall--
       (i) update the study conducted under paragraph (1); and
       (ii) submit to Congress an updated report that--

       (I) contains the results of the updated study required 
     under clause (i); and
       (II) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.

       (3) Adjustment of methodologies.--The Administrator shall, 
     to the extent practicable, adjust the methodologies used to 
     estimate the varying levels of residual risk behind levees 
     and other flood control structures based on the 
     recommendations submitted by the Comptroller General under 
     subparagraphs (A)(ii) and (B)(ii)(II).
       (e) Study of Voluntary Community-based Flood Insurance 
     Options.--
       (1) Study.--
       (A) Study required.--The Administrator shall conduct a 
     study to assess options, methods, and strategies for making 
     available voluntary community-based flood insurance policies 
     through the National Flood Insurance Program.
       (B) Considerations.--The study conducted under subparagraph 
     (A) shall --
       (i) take into consideration and analyze how voluntary 
     community-based flood insurance policies--

       (I) would affect communities having varying economic bases, 
     geographic locations, flood hazard characteristics or 
     classifications, and flood management approaches; and
       (II) could satisfy the applicable requirements under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a); and

       (ii) evaluate the advisability of making available 
     voluntary community-based flood insurance policies to 
     communities, subdivisions of communities, and areas of 
     residual risk.
       (C) Consultation.--In conducting the study required under 
     subparagraph (A), the Administrator may consult with the 
     Comptroller General of the United States, as the 
     Administrator determines is appropriate.
       (2) Report by the administrator.--
       (A) Report required.--Not later than 18 months after the 
     date of enactment of this Act, the Administrator 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 that contains the results 
     and conclusions of the study conducted under paragraph (1).
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include recommendations for--
       (i) the best manner to incorporate voluntary community-
     based flood insurance policies into the National Flood 
     Insurance Program; and
       (ii) a strategy to implement voluntary community-based 
     flood insurance policies that would encourage communities to 
     undertake flood mitigation activities, including the 
     construction, reconstruction, or improvement of levees, dams, 
     or other flood control structures.
       (3) Report by comptroller general.--Not later than 6 months 
     after the date on which the Administrator submits the report 
     required under paragraph (2), the Comptroller General of the 
     United States shall--
       (A) review the report submitted by the Administrator; and
       (B) 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 that contains--
       (i) an analysis of the report submitted by the 
     Administrator;
       (ii) any comments or recommendations of the Comptroller 
     General relating to the report submitted by the 
     Administrator; and
       (iii) any other recommendations of the Comptroller General 
     relating to community-based flood insurance policies.

     SEC. 108. PREMIUM ADJUSTMENT.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015), as amended by section 106, is further 
     amended by adding at the end the following:
       ``(h) Premium Adjustment To Reflect Current Risk of 
     Flood.--Notwithstanding subsection (f), upon the effective 
     date of any revised or updated flood insurance rate map under 
     this Act, the Flood Disaster Protection Act of 1973, or the 
     Flood Insurance Reform and Modernization Act of 2012, 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 effective date of such an update that is a result of 
     such updating shall be phased in over a 4-year period, at the 
     rate of 40 percent for the first year following such 
     effective date and 20 percent for each of the second, third, 
     and fourth years following such effective date. In the case 
     of any area that was not previously designated as an area 
     having special flood hazards and that, pursuant to any 
     issuance, revision, updating, or other change in a flood 
     insurance map, becomes designated as such an area, the 
     chargeable risk premium rate for flood insurance under this 
     title that is purchased on or after the date of enactment of 
     this subsection with respect to any property that is located 
     within such area shall be phased in over a 4-year period, at 
     the rate of 40 percent for the first year following the 
     effective date of such issuance, revision, updating, or 
     change and 20 percent for each of the second, third, and 
     fourth years following such effective date.''.

     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;

[[Page S4467]]

       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and'';
       (3) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (4) by inserting after subparagraph (B), as so 
     redesignated, the following:
       ``(C) given satisfactory assurance that by the date that is 
     6 months after the date of enactment of the Flood Insurance 
     Reform and Modernization Act of 2012, State lending 
     institutions, as defined in section 3 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4003), 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).'';
       (5) in the matter preceding subparagraph (A), as so 
     redesignated, by striking ``The Director'' and inserting the 
     following:
       ``(1) In general.--The Administrator''; and
       (6) by adding at the end the following:
       ``(2) Short-term waivers.--
       ``(A) In general.--The Administrator may, upon the request 
     of a State, not later than 6 months after the date of 
     enactment of this paragraph, grant a temporary waiver of the 
     requirements under paragraph (1)(C) with respect to a State 
     entity for lending regulation, as defined in section 3 of the 
     Flood Disaster Protection Act of 1973, that does not have the 
     authority under State law to comply with paragraph (1)(C).
       ``(B) Considerations.--In determining the length of time a 
     waiver under subparagraph (A) will be in effect, the 
     Administrator shall consider the time anticipated for--
       ``(i) the State to enact a law to grant the authority 
     necessary to comply with paragraph (1)(C); and
       ``(ii) the State entity for lending regulation to issue 
     regulations necessary to comply with paragraph (1)(C).''.

     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.--
       (1) Definitions.--Section 3 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4003) is amended--
       (A) in paragraph (10), by striking ``and'' at the end;
       (B) in paragraph (11), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(12) `State entity for lending regulation' means the 
     State entity or agency with primary responsibility for the 
     supervision or regulation of State lending institutions in a 
     State; and
       ``(13) `State lending institution' means any bank, savings 
     and loan association, credit union, farm credit bank, 
     production credit association, or similar lending institution 
     subject to the supervision or regulation of a State entity 
     for lending regulation.''.
       (2) Escrow requirements.--Paragraph (1) of section 102(d) 
     of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4012a(d)) is amended to read as follows:
       ``(1) Regulated lending institutions and state 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 all premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968, for 
     improved real estate or a mobile home, shall be paid to the 
     regulated lending institution or servicer for any loan 
     secured by the improved real estate or mobile home, with the 
     same frequency as payments on the loan are made, for the 
     duration of the loan. Except as provided in subparagraph (C), 
     upon receipt of any premiums or fees, the regulated lending 
     institution or servicer shall deposit such premiums and fees 
     in an escrow account on behalf of the borrower. Upon receipt 
     of a notice from the Administrator or the provider of the 
     flood insurance that insurance premiums are due, the premiums 
     deposited in the 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 State entity for 
     lending regulation require that premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968, for 
     improved real estate or a mobile home shall be paid to the 
     State lending institution or servicer for any loan secured by 
     the improved real estate or mobile home, with the same 
     frequency as payments on the loan are made, for the duration 
     of the loan. Except as provided in subparagraph (C), upon 
     receipt of any premiums or fees, the State lending 
     institution or servicer shall deposit such premiums and fees 
     in an escrow account on behalf of the borrower. Upon receipt 
     of a notice from the Administrator or the provider of the 
     flood insurance that insurance premiums are due, the premiums 
     deposited in the escrow account shall be paid to the provider 
     of the flood insurance.
       ``(C) Limitation.--Except as may be required under 
     applicable State law, neither a Federal entity for lending 
     regulation nor a State entity for lending regulation may 
     direct or require a regulated lending institution or State 
     lending institution to deposit premiums or fees for flood 
     insurance under the National Flood Insurance Act of 1968 in 
     an escrow account on behalf of a borrower under subparagraph 
     (A) or (B), if--
       ``(i) the regulated lending institution or State lending 
     institution has total assets of less than $1,000,000,000; and
       ``(ii) on or before the date of enactment of the Flood 
     Insurance Reform and Modernization Act of 2012, the regulated 
     lending institution or State lending institution--

       ``(I) in the case of a loan secured by residential improved 
     real estate or a mobile home, was not required under Federal 
     or State law to deposit taxes, insurance premiums, fees, or 
     any other charges in an escrow account for the entire term of 
     the loan; and
       ``(II) did not have a policy of consistently and uniformly 
     requiring the deposit of taxes, insurance premiums, fees, or 
     any other charges in an escrow account for loans secured by 
     residential improved real estate or a mobile home.''.

       (b) Applicability.--The amendment made by subsection (a)(2) 
     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 Act.

     SEC. 112. 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 Administrator 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 Administrator 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 Administrator under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $1,000, 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) $1,250, 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. 113. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM 
                   RATES.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015), as amended by this Act, 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 at the end 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:
       ``(i) 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. 114. 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 (42 U.S.C. 4017) the following:

     ``SEC. 1310A. RESERVE FUND.

       ``(a) Establishment of Reserve Fund.--In carrying out the 
     flood insurance program authorized by this chapter, the 
     Administrator 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 Administrator; 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

[[Page S4468]]

     insurance policies in force in the prior fiscal year; or
       ``(2) such higher percentage as the Administrator 
     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 Administrator 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 Administrator 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 Administrator determines 
     appropriate.
       ``(3) Limitations.--In exercising the authority granted 
     under paragraph (1), the Administrator 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 2013 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved, in each such fiscal year 
     the Administrator 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 Administrator 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 
     Administrator 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 Administrator determines that the reserve ratio 
     required under subsection (b) cannot be achieved, the 
     Administrator shall submit a report to Congress that--
       ``(1) describes and details the specific concerns of the 
     Administrator regarding the consequences of the reserve ratio 
     not being achieved;
       ``(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. 115. 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) Upon the exercise of the authority established under 
     subsection (a), the Administrator shall transmit a schedule 
     for repayment of such amounts to--
       ``(1) the Secretary of the Treasury;
       ``(2) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(3) the Committee on Financial Services of the House of 
     Representatives.
       ``(d) In connection with any funds borrowed by the 
     Administrator under the authority established in subsection 
     (a), the Administrator, beginning 6 months after the date on 
     which such funds are borrowed, and continuing every 6 months 
     thereafter until such borrowed funds are fully repaid, shall 
     submit a report on the progress of such repayment to--
       ``(1) the Secretary of the Treasury;
       ``(2) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(3) the Committee on Financial Services of the House of 
     Representatives.''.

     SEC. 116. PAYMENT OF CONDOMINIUM CLAIMS.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019), as amended by section 112, is amended by 
     adding at the end the following:
       ``(c) Payment of Claims to Condominium Owners.--The 
     Administrator 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.''.

     SEC. 117. 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--
       (A) the Administrator (or the designee thereof);
       (B) the Secretary of the Interior (or the designee 
     thereof);
       (C) the Secretary of Agriculture (or the designee thereof);
       (D) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or the designee thereof); and
       (E) 14 additional members appointed by the Administrator or 
     the designee of the Administrator, who shall be--
       (i) a member of a recognized professional surveying 
     association or organization;
       (ii) a member of a recognized professional mapping 
     association or organization;
       (iii) a member of a recognized professional engineering 
     association or organization;
       (iv) a member of a recognized professional association or 
     organization representing flood hazard determination firms;
       (v) a representative of the United States Geological 
     Survey;
       (vi) a representative of a recognized professional 
     association or organization representing State geographic 
     information;
       (vii) a representative of State national flood insurance 
     coordination offices;
       (viii) a representative of the Corps of Engineers;
       (ix) a member of a recognized regional flood and storm 
     water management organization;
       (x) a representative of a State agency that has entered 
     into a cooperating technical partnership with the 
     Administrator and has demonstrated the capability to produce 
     flood insurance rate maps;
       (xi) a representative of a local government agency that has 
     entered into a cooperating technical partnership with the 
     Administrator and has demonstrated the capability to produce 
     flood insurance rate maps;
       (xii) a member of a recognized floodplain management 
     association or organization;
       (xiii) a member of a recognized risk management association 
     or organization; and
       (xiv) a State mitigation officer.
       (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 Administrator 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 Administrator 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 Administrator 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 Administrator 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 Administrator 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 
     118; and
       (C) a summary of recommendations made by the Council to the 
     Administrator.
       (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 Act, prepare written recommendations in a future 
     conditions risk assessment and modeling report and to submit 
     such recommendations to the Administrator.
       (2) Responsibility of the administrator.--The 
     Administrator, as part of the ongoing program to review and 
     update National Flood Insurance Program rate maps under 
     section 118, 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

[[Page S4469]]

     Federal Geographic Data Committee (established pursuant to 
     Office of Management and Budget 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.
       (2) Initial meeting.--The Administrator, or a person 
     designated by the Administrator, 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 Administrator 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 nonreimbursable 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 Administrator, 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;
       (2) actions taken by the Federal Emergency Management 
     Agency to address such recommendations to improve flood 
     insurance rate maps and flood risk data; and
       (3) any recommendations made by the Council that have been 
     deferred or not acted upon, together with an explanatory 
     statement.

     SEC. 118. NATIONAL FLOOD MAPPING PROGRAM.

       (a) Reviewing, Updating, and Maintaining Maps.--The 
     Administrator, in coordination with the Technical Mapping 
     Advisory Council established under section 117, shall 
     establish an ongoing program under which the Administrator 
     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 Administrator shall--
       (A) identify, review, update, maintain, and publish 
     National Flood Insurance Program rate maps with respect to--
       (i) all populated areas and areas of possible population 
     growth located within the 100-year floodplain;
       (ii) all populated areas and areas of possible population 
     growth located within the 500-year floodplain;
       (iii) areas of residual risk, including areas that are 
     protected by levees, dams, and other flood control 
     structures;
       (iv) areas that could be inundated as a result of the 
     failure of a levee, dam, or other flood control structure; 
     and
       (v) the level of protection provided by flood control 
     structures;
       (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 (42 U.S.C. 4011 et seq.), the most 
     accurate topography and elevation data available.
       (2) Mapping elements.--Each map updated under this section 
     shall--
       (A) 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 
     guidelines and specifications of the Federal Emergency 
     Management Agency; and
       (B) 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 Administrator 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 Administrator;
       (C) any relevant information on land subsidence, coastal 
     erosion areas, and other flood-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 Administrator 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 Administrator, in 
     conjunction with State and local governments, in developing 
     maps for communities with similar flood risks, as determined 
     by the Administrator; 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) aligned with official data defined by the National 
     Geodetic Survey.
       (d) Communication and Outreach.--
       (1) In general.--The Administrator shall--
       (A) work to enhance communication and outreach to States, 
     local communities, and property owners about the effects--
       (i) of any potential changes to National Flood Insurance 
     Program rate maps that may result from the mapping program 
     required under this section; and
       (ii) that any such changes may have on flood insurance 
     purchase requirements; and
       (B) engage with local communities to enhance communication 
     and outreach to the residents of such communities on the 
     matters described under subparagraph (A).
       (2) Required activities.--The communication and outreach 
     activities required under paragraph (1) shall include--
       (A) notifying property owners when their properties become 
     included in, or when they are excluded from, an area covered 
     by the mandatory flood insurance purchase requirement under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a);
       (B) educating property owners regarding the flood risk and 
     reduction of this risk in their community, including the 
     continued flood risks to areas that are no longer subject to 
     the flood insurance mandatory purchase requirement;
       (C) educating property owners regarding the benefits and 
     costs of maintaining or acquiring flood insurance, including, 
     where applicable, lower-cost preferred risk policies under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.) for such properties and the contents of such 
     properties;
       (D) educating property owners about flood map revisions and 
     the process available to such owners to appeal proposed 
     changes in flood elevations through their community; and
       (E) encouraging property owners to maintain or acquire 
     flood insurance coverage.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator to carry out this 
     section $400,000,000 for each of fiscal years 2013 through 
     2017.

     SEC. 119. SCOPE OF APPEALS.

       Section 1363 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104) is amended--
       (1) in subsection (a)--
       (A) by inserting ``and designating areas having special 
     flood hazards'' after ``flood elevations''; and
       (B) by striking ``such determinations'' and inserting 
     ``such determinations and designations''; and
       (2) in subsection (b)--
       (A) in the first sentence, by inserting ``and designations 
     of areas having special flood hazards'' after ``flood 
     elevation determinations''; and
       (B) by amending the third sentence to read as follows: 
     ``The sole grounds for appeal shall be the possession of 
     knowledge or information indicating that (1) the elevations 
     being proposed by the Administrator with respect to an 
     identified area having special flood hazards are 
     scientifically or technically incorrect, or (2) the 
     designation of an identified special flood hazard area is 
     scientifically or technically incorrect.''.

     SEC. 120. SCIENTIFIC RESOLUTION PANEL.

       (a) Establishment.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by 
     inserting after section 1363 (42 U.S.C. 4104) the following:

     ``SEC. 1363A. SCIENTIFIC RESOLUTION PANEL.

       ``(a) Availability.--
       ``(1) In general.--Pursuant to the authority provided under 
     section 1363(e), the Administrator shall make available an 
     independent review panel, to be known as the Scientific 
     Resolution Panel, to any community--
       ``(A) that has--
       ``(i) filed a timely map appeal in accordance with section 
     1363;
       ``(ii) completed 60 days of consultation with the Federal 
     Emergency Management Agency on the appeal; and
       ``(iii) not allowed more than 120 days, or such longer 
     period as may be provided by the

[[Page S4470]]

     Administrator by waiver, to pass since the end of the appeal 
     period; or
       ``(B) that has received an unsatisfactory ruling under the 
     map revision process established pursuant to section 1360(f).
       ``(2) Appeals by owners and lessees.--If a community and an 
     owner or lessee of real property within the community appeal 
     a proposed determination of a flood elevation under section 
     1363(b), upon the request of the community--
       ``(A) the owner or lessee shall submit scientific and 
     technical data relating to the appeals to the Scientific 
     Resolution Panel; and
       ``(B) the Scientific Resolution Panel shall make a 
     determination with respect to the appeals in accordance with 
     subsection (c).
       ``(3) Definition.--For purposes of paragraph (1)(B), an 
     `unsatisfactory ruling' means that a community--
       ``(A) received a revised Flood Insurance Rate Map from the 
     Federal Emergency Management Agency, via a Letter of Final 
     Determination, after September 30, 2008, and prior to the 
     date of enactment of this section;
       ``(B) has subsequently applied for a Letter of Map Revision 
     or Physical Map Revision with the Federal Emergency 
     Management Agency; and
       ``(C) has received an unfavorable ruling on their request 
     for a map revision.
       ``(b) Membership.--The Scientific Resolution Panel made 
     available under subsection (a) shall consist of 5 members 
     with expertise that relates to the creation and study of 
     flood hazard maps and flood insurance. The Scientific 
     Resolution Panel may include representatives from Federal 
     agencies not involved in the mapping study in question and 
     from other impartial experts. Employees of the Federal 
     Emergency Management Agency may not serve on the Scientific 
     Resolution Panel.
       ``(c) Determination.--
       ``(1) In general.--Following deliberations, and not later 
     than 90 days after its formation, the Scientific Resolution 
     Panel shall issue a determination of resolution of the 
     dispute. Such determination shall set forth recommendations 
     for the base flood elevation determination or the designation 
     of an area having special flood hazards that shall be 
     reflected in the Flood Insurance Rate Maps.
       ``(2) Basis.--The determination of the Scientific 
     Resolution Panel shall be based on--
       ``(A) data previously provided to the Administrator by the 
     community, and, in the case of a dispute submitted under 
     subsection (a)(2), an owner or lessee of real property in the 
     community; and
       ``(B) data provided by the Administrator.
       ``(3) No alternative determinations permissible.--The 
     Scientific Resolution Panel--
       ``(A) shall provide a determination of resolution of a 
     dispute that--
       ``(i) is either in favor of the Administrator or in favor 
     of the community on each distinct element of the dispute; or
       ``(ii) in the case of a dispute submitted under subsection 
     (a)(2), is in favor of the Administrator, in favor of the 
     community, or in favor of the owner or lessee of real 
     property in the community on each distinct element of the 
     dispute; and
       ``(B) may not offer as a resolution any other alternative 
     determination.
       ``(4) Effect of determination.--
       ``(A) Binding.--The recommendations of the Scientific 
     Resolution Panel shall be binding on all appellants and not 
     subject to further judicial review unless the Administrator 
     determines that implementing the determination of the panel 
     would--
       ``(i) pose a significant threat due to failure to identify 
     a substantial risk of special flood hazards; or
       ``(ii) violate applicable law.
       ``(B) Written justification not to enforce.--If the 
     Administrator elects not to implement the determination of 
     the Scientific Resolution Panel pursuant to subparagraph (A), 
     then not later than 60 days after the issuance of the 
     determination, the Administrator shall issue a written 
     justification explaining such election.
       ``(C) Appeal of determination not to enforce.--If the 
     Administrator elects not to implement the determination of 
     the Scientific Resolution Panel pursuant to subparagraph (A), 
     the community may appeal the determination of the 
     Administrator as provided for under section 1363(g).
       ``(d) Maps Used for Insurance and Mandatory Purchase 
     Requirements.--With respect to any community that has a 
     dispute that is being considered by the Scientific Resolution 
     Panel formed pursuant to this subsection, the Federal 
     Emergency Management Agency shall ensure that for each such 
     community that--
       ``(1) the Flood Insurance Rate Map described in the most 
     recently issued Letter of Final Determination shall be in 
     force and effect with respect to such community; and
       ``(2) flood insurance shall continue to be made available 
     to the property owners and residents of the participating 
     community.''.
       (b) Conforming Amendments.--
       (1) Administrative review.--Section 1363(e) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended, 
     in the second sentence, by striking ``an independent 
     scientific body or appropriate Federal agency for advice'' 
     and inserting ``the Scientific Resolution Panel provided for 
     in section 1363A''.
       (2) Judicial review.--The first sentence of section 1363(g) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104(g)) is amended by striking ``Any appellant'' and 
     inserting ``Except as provided in section 1363A, any 
     appellant''.

     SEC. 121. 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. 122. COORDINATION.

       (a) Interagency Budget Crosscut and Coordination Report.--
       (1) In general.--The Secretary of Homeland Security, the 
     Administrator, the Director of the Office of Management and 
     Budget, and the heads of each Federal department or agency 
     carrying out activities under sections 117 and 118 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 an 
     interagency budget crosscut and coordination report, 
     certified by the Secretary or head of each such agency, 
     that--
       (A) contains an interagency budget crosscut report that 
     displays relevant sections of the budget proposed for each of 
     the Federal agencies working on flood risk determination data 
     and digital elevation models, including any planned 
     interagency or intra-agency transfers; and
       (B) describes how the efforts aligned with such sections 
     complement one another.
       (b) Duties of the Administrator.--In carrying out sections 
     117 and 118, the Administrator shall--
       (1) participate, pursuant to section 216 of the E-
     Government Act of 2002 (44 U.S.C. 3501 note), 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 a liaison to the Federal Geographic Data 
     Committee pursuant to the Office of Management and Budget 
     Circular A-16 and Executive Order 12906 (43 U.S.C. 1457 note; 
     relating to the National Spatial Data Infrastructure) 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 maintain or establish joint 
     funding and other agreement mechanisms with other Federal 
     agencies and units of State and local government to share in 
     the collection and utilization of geospatial data among all 
     governmental users.

     SEC. 123. INTERAGENCY COORDINATION STUDY.

       (a) In General.--The Administrator 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.--A contract entered into under subsection (a) 
     shall require that, 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--
       (1) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (2) the Committee on Financial Services of the House of 
     Representatives;
       (3) the Committee on Appropriations of the Senate; and
       (4) the Committee on Appropriations of the House of 
     Representatives.

     SEC. 124. NONMANDATORY PARTICIPATION.

       (a) Nonmandatory Participation in National Flood Insurance 
     Program for 500-Year Floodplain.--Any area that is within the 
     500-year floodplain and is not an area having special flood 
     hazards 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 and 4106).
       (b) Notice.--
       (1) By administrator.--In carrying out the National Flood 
     Insurance Program, the Administrator shall provide notice to 
     any community located in an area that is within the 500-year 
     floodplain and is not an area having special flood hazards.

[[Page S4471]]

       (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.--
       (i) Federal lending institutions.--Each Federal 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 that is 
     within the 500-year floodplain and is not an area having 
     special flood hazards, 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 that is 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)).
       (ii) State lending institutions.--In order to continue to 
     participate in the flood insurance program, each State shall 
     direct that its State entity for lending regulation require 
     State lending institutions (as such terms are defined in 
     section 3 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4003)), as a condition of making, increasing, 
     extending, or renewing any loan secured by property located 
     in an area that is within the 500-year floodplain and is not 
     an area having special flood hazards, 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 
     that is 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 and state agency lenders.--
       (i) Federal agency lenders.--Each Federal 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 agency lender and secured by 
     property located in an area that is within the 500-year 
     floodplain and is not an area having special flood hazards.
       (ii) State agency lenders.--In order to continue to 
     participate in the flood insurance program, each State shall 
     require any State agency lender to provide notification in 
     the same manner as provided under subparagraph (A) with 
     respect to any loan that is made by the State agency lender 
     and secured by property located in an area that is within the 
     500-year floodplain and is not an area having special flood 
     hazards.
       (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. 125. 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)), as amended by section 1450 of 
     the Dodd-Frank Wall Street Reform and Consumer Protection Act 
     (Public Law 111-203; 124 Stat. 2174), is amended by adding at 
     the end the following:
       ``(14) 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. 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 (42 U.S.C. 4020) 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 covered under the national flood insurance 
     program established under this title and other personal lines 
     residential property insurance coverage offered by a State 
     regulated insurer, upon a 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 Administrator in 
     a program sponsored by such State for nonbinding mediation of 
     insurance claims resulting from a major disaster, the 
     Administrator shall cause representatives of the national 
     flood insurance program to participate in such a State 
     program where claims under the national 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 Administrator shall 
     require that each representative of the Administrator--
       ``(1) be certified for purposes of the national 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 national flood insurance program; and
       ``(4) finalize the settlement of such claims on behalf of 
     the national flood insurance program with such policyholders.
       ``(c) Coordination.--Representatives of the Administrator 
     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 Administrator 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 Administrator, 
     including any regulation relating to a standard flood 
     insurance policy;
       ``(B) under this title; 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 title.
       ``(h) Cost Limitation.--Nothing in this section shall be 
     construed to require the Administrator or a representative of 
     the Administrator to pay additional mediation fees relating 
     to flood insurance claims associated with a State-sponsored 
     mediation program in which such representative of the 
     Administrator 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 Administrator.--For purposes 
     of this section, the term `representatives of the 
     Administrator' 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. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION 
                   ON CLAIMS PAYMENTS.

       (a) In General.--The Administrator shall collect, from 
     property and casualty insurance companies that are authorized 
     by the Administrator 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; and
       (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. 128. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSURANCE 
                   COMPANIES.

       (a) Submission of Biennial Reports.--

[[Page S4472]]

       (1) To the administrator.--Not later than 20 days after the 
     date of enactment of this Act, each property and casualty 
     insurance company participating in the Write Your Own program 
     shall submit to the Administrator any biennial report 
     required by the Federal Emergency Management Agency to be 
     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 Administrator 
     shall submit all such reports to the Comptroller General of 
     the United States.
       (3) Notice to congress of failure to comply.--The 
     Administrator 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).
       (4) Failure to comply.--A property and casualty insurance 
     company participating in the Write Your Own program which 
     fails to comply with the reporting requirement under this 
     subsection or the requirement under section 62.23(j)(1) of 
     title 44, Code of Federal Regulations (relating to biennial 
     audit of the flood insurance financial statements) shall be 
     subject to a civil penalty in an amount equal to $1,000 per 
     day for each day that the company remains in noncompliance 
     with either such requirement.
       (b) Methodology To Determine Reimbursed Expenses.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Administrator shall develop a methodology for determining 
     the appropriate amounts that property and casualty insurance 
     companies participating in the Write Your Own program should 
     be reimbursed for selling, writing, and servicing flood 
     insurance policies and adjusting flood insurance claims on 
     behalf of the National Flood Insurance Program. The 
     methodology shall be developed using actual expense data for 
     the flood insurance line and can be derived from--
       (1) flood insurance expense data produced by the property 
     and casualty insurance companies;
       (2) flood insurance expense data collected by the National 
     Association of Insurance Commissioners; or
       (3) a combination of the methodologies described in 
     paragraphs (1) and (2).
       (c) Submission of Expense Reports.--To develop the 
     methodology established under subsection (b), the 
     Administrator may require each property and casualty 
     insurance company participating in the Write Your Own program 
     to submit a report to the Administrator, in a format 
     determined by the Administrator and within 60 days of the 
     request, that details the expense levels of each such company 
     for selling, writing, and servicing standard flood insurance 
     policies and adjusting and servicing claims.
       (d) FEMA Rulemaking on Reimbursement of Expenses Under the 
     Write Your Own Program.--Not later than 12 months after the 
     date of enactment of this Act, the Administrator shall issue 
     a rule 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 noncatastrophic years. 
     Such reimbursements shall be structured to ensure 
     reimbursements track the actual expenses, including standard 
     business costs and operating expenses, of such companies as 
     closely as practicably possible.
       (e) Report of the Administrator.--Not later than 60 days 
     after the effective date of the final rule issued pursuant to 
     subsection (d), the Administrator 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 Write Your Own 
     Program.--
       (1) Study.--Not later than 180 days after the effective 
     date of the final rule issued 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 issued pursuant to subsection 
     (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 rule issued pursuant to subsection (d) allows 
     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 issued pursuant to 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 the final rule issued 
     pursuant to subsection (d) on the level of participation of 
     property and casualty insurers in the Write Your Own program.

     SEC. 129. MITIGATION.

       (a) Mitigation Assistance Grants.--Section 1366 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
     amended--
       (1) by striking subsections (b), (d), (f), (g), (h), (k), 
     and (m);
       (2) by redesignating subsections (c), (e), (i), and (j) as 
     subsections (b), (c), (e), and (f), respectively;
       (3) in subsection (a), by striking the last sentence and 
     inserting the following: ``Such financial assistance shall be 
     made available--
       ``(1) to States and communities in the form of grants under 
     this section for carrying out mitigation activities;
       ``(2) to States and communities in the form of grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to severe repetitive loss structures; and
       ``(3) to property owners in the form of direct grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to individual structures for which 2 or 
     more claim payments for losses have been made under flood 
     insurance coverage under this title if the Administrator, 
     after consultation with the State and community, determines 
     that neither the State nor community in which such a 
     structure is located has the capacity to manage such 
     grants.'';
       (4) in subsection (b), as so redesignated, in the first 
     sentence--
       (A) by striking ``and provides protection against'' and 
     inserting ``provides for reduction of''; and
       (B) by inserting before the period at the end the 
     following: ``, and may be included in a multihazard 
     mitigation plan'';
       (5) in subsection (c), as so redesignated--
       (A) in paragraph (1), by striking ``(1) Use of amounts.--'' 
     and all that follows through the end of the first sentence 
     and inserting the following:
       ``(1) Requirement of consistency with approved mitigation 
     plan.--Amounts provided under this section may be used only 
     for mitigation activities that are consistent with mitigation 
     plans that are approved by the Administrator and identified 
     under paragraph (4).'';
       (B) by striking paragraphs (2), (3), and (4) and inserting 
     the following new paragraphs:
       ``(2) Requirements of technical feasibility, cost 
     effectiveness, and interest of nfif.--The Administrator may 
     approve only mitigation activities that the Administrator 
     determines are technically feasible and cost effective and in 
     the interest of, and represent savings to, the National Flood 
     Insurance Fund. In making such determinations, the 
     Administrator shall take into consideration recognized 
     ancillary benefits.
       ``(3) Priority for mitigation assistance.--In providing 
     grants under this section for mitigation activities, the 
     Administrator shall give priority for funding to activities 
     that the Administrator determines will result in the greatest 
     savings to the National Flood Insurance Fund, including 
     activities for--
       ``(A) severe repetitive loss structures;
       ``(B) repetitive loss structures; and
       ``(C) other subsets of structures as the Administrator may 
     establish.'';
       (C) by redesignating paragraph (5) as paragraph (4);
       (D) in paragraph (4), as so redesignated--
       (i) in the matter preceding subparagraph (A), by striking 
     ``The Director'' and all that follows through ``Such 
     activities may'' and inserting ``Eligible activities under a 
     mitigation plan may'';
       (ii) by striking subparagraphs (E) and (H);
       (iii) by redesignating subparagraphs (D), (F), and (G) as 
     subparagraphs (E), (G), and (H), respectively;
       (iv) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) elevation, relocation, or floodproofing of utilities 
     (including equipment that serves structures);'';
       (v) by inserting after subparagraph (E), as so 
     redesignated, the following new subparagraph:
       ``(F) the development or update of mitigation plans by a 
     State or community which meet the planning criteria 
     established by the Administrator, except that the amount from 
     grants under this section that may be used under this 
     subparagraph may not exceed $50,000 for any mitigation plan 
     of a State or $25,000 for any mitigation plan of a 
     community;'';
       (vi) in subparagraph (H); as so redesignated, by striking 
     ``and'' at the end; and
       (vii) by adding at the end the following new subparagraphs:
       ``(I) other mitigation activities not described in 
     subparagraphs (A) through (G) or the regulations issued under 
     subparagraph (H), that are described in the mitigation plan 
     of a State or community; and
       ``(J) without regard to the requirements under paragraphs 
     (1) and (2) of subsection (d), and if the State applied for 
     and was awarded at least $1,000,000 in grants available under

[[Page S4473]]

     this section in the prior fiscal year, technical assistance 
     to communities to identify eligible activities, to develop 
     grant applications, and to implement grants awarded under 
     this section, not to exceed $50,000 to any 1 State in any 
     fiscal year.'';
       (E) by adding at the end the following new paragraph:
       ``(5) Eligibility of demolition and rebuilding of 
     properties.--The Administrator shall consider as an eligible 
     activity the demolition and rebuilding of properties to at 
     least base flood elevation or greater, if required by the 
     Administrator or if required by any State regulation or local 
     ordinance, and in accordance with criteria established by the 
     Administrator.''; and
       (6) by inserting after subsection (c), as so redesignated, 
     the following new subsection:
       ``(d) Matching Requirement.--The Administrator may provide 
     grants for eligible mitigation activities as follows:
       ``(1) Severe repetitive loss structures.--In the case of 
     mitigation activities to severe repetitive loss structures, 
     in an amount up to 100 percent of all eligible costs.
       ``(2) Repetitive loss structures.--In the case of 
     mitigation activities to repetitive loss structures, in an 
     amount up to 90 percent of all eligible costs.
       ``(3) Other mitigation activities.--In the case of all 
     other mitigation activities, in an amount up to 75 percent of 
     all eligible costs.'';
       (7) in subsection (e)(2), as so redesignated--
       (A) by striking ``certified under subsection (g)'' and 
     inserting ``required under subsection (d)''; and
       (B) by striking ``3 times the amount'' and inserting ``the 
     amount'';
       (8) in subsection (f), as so redesignated, by striking 
     ``Riegle Community Development and Regulatory Improvement Act 
     of 1994'' and inserting ``Flood Insurance Reform and 
     Modernization Act of 2012''; and
       (9) by adding at the end the following new subsections:
       ``(g) Failure To Make Grant Award Within 5 Years.--For any 
     application for a grant under this section for which the 
     Administrator fails to make a grant award within 5 years of 
     the date of the application, the grant application shall be 
     considered to be denied and any funding amounts allocated for 
     such grant applications shall remain in the National Flood 
     Mitigation Fund under section 1367 of this title and shall be 
     made available for grants under this section.
       ``(h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Community.--The term `community' means--
       ``(A) a political subdivision that--
       ``(i) has zoning and building code jurisdiction over a 
     particular area having special flood hazards; and
       ``(ii) is participating in the national flood insurance 
     program; or
       ``(B) a political subdivision of a State, or other 
     authority, that is designated by political subdivisions, all 
     of which meet the requirements of subparagraph (A), to 
     administer grants for mitigation activities for such 
     political subdivisions.
       ``(2) Repetitive loss structure.--The term `repetitive loss 
     structure' has the meaning given such term in section 1370.
       ``(3) Severe repetitive loss structure.--The term `severe 
     repetitive loss structure' means a structure that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which 4 or more separate claims payments have 
     been made under flood insurance coverage under this title, 
     with the amount of each such claim exceeding $5,000, and with 
     the cumulative amount of such claims payments exceeding 
     $20,000; or
       ``(ii) for which at least 2 separate claims payments have 
     been made under such coverage, with the cumulative amount of 
     such claims exceeding the value of the insured structure.''.
       (b) Elimination of Grants Program for Repetitive Insurance 
     Claims Properties.--Chapter I of the National Flood Insurance 
     Act of 1968 is amended by striking section 1323 (42 U.S.C. 
     4030).
       (c) Elimination of Pilot Program for Mitigation of Severe 
     Repetitive Loss Properties.--Chapter III of the National 
     Flood Insurance Act of 1968 is amended by striking section 
     1361A (42 U.S.C. 4102a).
       (d) National Flood Insurance Fund.--Section 1310(a) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 
     amended--
       (1) in paragraph (6), by inserting ``and'' after the 
     semicolon;
       (2) in paragraph (7), by striking the semicolon and 
     inserting a period; and
       (3) by striking paragraphs (8) and (9).
       (e) National Flood Mitigation Fund.--Section 1367 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is 
     amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) in each fiscal year, amounts from the National Flood 
     Insurance Fund not to exceed $90,000,000 and to remain 
     available until expended, of which--
       ``(A) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(1);
       ``(B) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(2); and
       ``(C) not more than $10,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(3);''; and
       (B) in paragraph (3), by striking ``section 1366(i)'' and 
     inserting ``section 1366(e)'';
       (2) in subsection (c), by striking ``sections 1366 and 
     1323'' and inserting ``section 1366'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively; and
       (4) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Prohibition on Offsetting Collections.--
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this section shall not be subject 
     to offsetting collections through premium rates for flood 
     insurance coverage under this title.
       ``(e) Continued Availability and Reallocation.--Any amounts 
     made available pursuant to subparagraph (A), (B), or (C) of 
     subsection (b)(1) that are not used in any fiscal year shall 
     continue to be available for the purposes specified in the 
     subparagraph of subsection (b)(1) pursuant to which such 
     amounts were made available, unless the Administrator 
     determines that reallocation of such unused amounts to meet 
     demonstrated need for other mitigation activities under 
     section 1366 is in the best interest of the National Flood 
     Insurance Fund.''.
       (f) Increased Cost of Compliance Coverage.--Section 
     1304(b)(4) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011(b)(4)) is amended--
       (1) by striking subparagraph (B); and
       (2) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (B), (C), and (D), respectively.

     SEC. 130. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK 
                   FORCE.

       (a) Definitions.--In this section--
       (1) the term ``flood protection structure accreditation 
     requirements'' means the requirements established under 
     section 65.10 of title 44, Code of Federal Regulations, for 
     levee systems to be recognized on maps created for purposes 
     of the National Flood Insurance Program;
       (2) the term ``National Committee on Levee Safety'' means 
     the Committee on Levee Safety established under section 9003 
     of the National Levee Safety Act of 2007 (33 U.S.C. 3302); 
     and
       (3) the term ``task force'' means the Flood Protection 
     Structure Accreditation Task Force established under 
     subsection (b).
       (b) Establishment.--
       (1) In general.--The Administrator and the Secretary of the 
     Army, acting through the Chief of Engineers, in cooperation 
     with the National Committee on Levee Safety, shall jointly 
     establish a Flood Protection Structure Accreditation Task 
     Force.
       (2) Duties.--
       (A) Developing process.--The task force shall develop a 
     process to better align the information and data collected by 
     or for the Corps of Engineers under the Inspection of 
     Completed Works Program with the flood protection structure 
     accreditation requirements so that--
       (i) information and data collected for either purpose can 
     be used interchangeably; and
       (ii) information and data collected by or for the Corps of 
     Engineers under the Inspection of Completed Works Program is 
     sufficient to satisfy the flood protection structure 
     accreditation requirements.
       (B) Gathering recommendations.--The task force shall 
     gather, and consider in the process developed under 
     subparagraph (A), recommendations from interested persons in 
     each region relating to the information, data, and 
     accreditation requirements described in subparagraph (A).
       (3) Considerations.--In developing the process under 
     paragraph (2), the task force shall consider changes to--
       (A) the information and data collected by or for the Corps 
     of Engineers under the Inspection of Completed Works Program; 
     and
       (B) the flood protection structure accreditation 
     requirements.
       (4) Rule of construction.--Nothing in this section shall be 
     construed to require a reduction in the level of public 
     safety and flood control provided by accredited levees, as 
     determined by the Administrator for purposes of this section.
       (c) Implementation.--The Administrator and the Secretary of 
     the Army, acting through the Chief of Engineers, shall 
     implement the process developed by the task force under 
     subsection (b).
       (d) Reports.--The Administrator and the Secretary of the 
     Army, acting through the Chief of Engineers, in cooperation 
     with the National Committee on Levee Safety, shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Environment and Public Works of 
     the Senate and the Committee on Financial Services, the 
     Committee on Transportation and Infrastructure, and the 
     Committee on Natural Resources of the House of 
     Representatives reports concerning the activities of the task 
     force and the implementation of the process developed by the 
     task force under subsection (b), including--
       (1) an interim report, not later than 180 days after the 
     date of enactment of this Act; and
       (2) a final report, not later than 1 year after the date of 
     enactment of this Act.
       (e) Termination.--The task force shall terminate on the 
     date of submission of the report under subsection (d)(2).

     SEC. 131. FLOOD IN PROGRESS DETERMINATIONS.

       (a) Report.--

[[Page S4474]]

       (1) Review.--The Administrator shall review--
       (A) the processes and procedures for determining that a 
     flood event has commenced or is in progress for purposes of 
     flood insurance coverage made available under the National 
     Flood Insurance Program;
       (B) the processes and procedures for providing public 
     notification that such a flood event has commenced or is in 
     progress;
       (C) the processes and procedures regarding the timing of 
     public notification of flood insurance requirements and 
     availability; and
       (D) the effects and implications that weather conditions, 
     including rainfall, snowfall, projected snowmelt, existing 
     water levels, and other conditions, have on the determination 
     that a flood event has commenced or is in progress.
       (2) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to Congress that describes--
       (A) the results and conclusions of the review under 
     paragraph (1); and
       (B) any actions taken, or proposed actions to be taken, by 
     the Administrator to provide for more precise and technical 
     processes and procedures for determining that a flood event 
     has commenced or is in progress.
       (b) Effective Date of Policies Covering Properties Affected 
     by Flooding of the Missouri River in 2011.--
       (1) Eligible coverage.--For purposes of this subsection, 
     the term ``eligible coverage'' means coverage under a new 
     contract for flood insurance coverage under the National 
     Flood Insurance Program, or a modification to coverage under 
     an existing flood insurance contract, for property damaged by 
     the flooding of the Missouri River that commenced on June 1, 
     2011, that was purchased or made during the period beginning 
     May 1, 2011, and ending June 6, 2011.
       (2) Effective dates.--Notwithstanding section 1306(c) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), 
     or any other provision of law, any eligible coverage shall--
       (A) be deemed to take effect on the date that is 30 days 
     after the date on which all obligations for the eligible 
     coverage (including completion of the application and payment 
     of any initial premiums owed) are satisfactorily completed; 
     and
       (B) cover damage to property occurring after the effective 
     date described in subparagraph (A) that resulted from the 
     flooding of the Missouri River that commenced on June 1, 
     2011, if the property did not suffer damage or loss as a 
     result of such flooding before the effective date described 
     in subparagraph (A).

     SEC. 132. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL 
                   COVERAGE LIMITS.

       Section 1306(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``in the case of any residential property'' 
     and inserting ``in the case of any residential building 
     designed for the occupancy of from 1 to 4 families''; and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance so as to 
     enable such insured or applicant to receive coverage up to a 
     total amount (including such limits specified in paragraph 
     (1)(A)(i)) of $250,000'' and inserting ``shall be made 
     available, with respect to any single such building, up to an 
     aggregate liability (including such limits specified in 
     paragraph (1)(A)(i)) of $250,000''; and
       (2) in paragraph (4)--
       (A) by striking ``in the case of any nonresidential 
     property, including churches,'' and inserting ``in the case 
     of any nonresidential building, including a church,''; and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance, in respect to 
     any single structure, up to a total amount (including such 
     limit specified in subparagraph (B) or (C) of paragraph (1), 
     as applicable) of $500,000 for each structure and $500,000 
     for any contents related to each structure'' and inserting 
     ``shall be made available with respect to any single such 
     building, up to an aggregate liability (including such limits 
     specified in subparagraph (B) or (C) of paragraph (1), as 
     applicable) of $500,000, and coverage shall be made available 
     up to a total of $500,000 aggregate liability for contents 
     owned by the building owner and $500,000 aggregate liability 
     for each unit within the building for contents owned by the 
     tenant''.

     SEC. 133. LOCAL DATA REQUIREMENT.

       (a) In General.--Notwithstanding any other provision of 
     this title, no area or community participating in the 
     National Flood Insurance Program that is or includes a 
     community that is identified by the Administrator as 
     Community Identification Number 360467 and impacted by the 
     Jamaica Bay flooding source or identified by the 
     Administrator as Community Identification Number 360495 may 
     be or become designated as an area having special flood 
     hazards for purposes of the National Flood Insurance Program, 
     unless the designation is made on the basis of--
       (1) flood hazard analyses of hydrologic, hydraulic, or 
     coastal flood hazards that have been properly calibrated and 
     validated, and are specific and directly relevant to the 
     geographic area being studied; and
       (2) ground elevation information of sufficient accuracy and 
     precision to meet the guidelines of the Administration for 
     accuracy at the 95 percent confidence level.
       (b) Remapping.--
       (1) Remapping required.--If the Administrator determines 
     that an area described in subsection (a) has been designated 
     as an area of special flood hazard on the basis of 
     information that does not comply with the requirements under 
     subsection (a), the Administrator shall revise and update any 
     National Flood Insurance Program rate map for the area--
       (A) using information that complies with the requirements 
     under subsection (a); and
       (B) in accordance with the procedures established under 
     section 1363 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104) for flood elevation determinations.
       (2) Interim period.--A National Flood Insurance Program 
     rate map in effect on the date of enactment of this Act for 
     an area for which the Administrator has made a determination 
     under paragraph (1) shall continue in effect with respect to 
     the area during the period--
       (A) beginning on the date of enactment of this Act; and
       (B) ending on the date on which the Administrator 
     determines that the requirements under section 1363 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104) for 
     flood elevation determinations have been met with respect to 
     a revision and update under paragraph (1) of a National Flood 
     Insurance Program rate map for the area.
       (3) Deadline.--The Administrator shall issue a preliminary 
     National Flood Insurance Program rate map resulting from a 
     revision and update required under paragraph (1) not later 
     than 1 year after the date of enactment of this Act.
       (4) Risk premium rate clarification.--
       (A) In general.--If a revision and update required under 
     paragraph (1) results in a reduction in the risk premium rate 
     for a property in an area for which the Administrator has 
     made a determination under paragraph (1), the Administrator 
     shall--
       (i) calculate the difference between the reduced risk 
     premium rate and the risk premium rate paid by a policyholder 
     with respect to the property during the period--

       (I) beginning on the date on which the National Flood 
     Insurance Program rate map in effect for the area on the date 
     of enactment of this Act took effect; and
       (II) ending on the date on which the revised or updated 
     National Flood Insurance Program rate map takes effect; and

       (ii) reimburse the policyholder an amount equal to such 
     difference.
       (B) Funding.--Notwithstanding section 1310 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be 
     available to the Administrator from premiums deposited in the 
     National Flood Insurance Fund pursuant to subsection (d) of 
     such section 1310, of amounts not otherwise obligated, the 
     amount necessary to carry out this paragraph.
       (c) Termination.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall cease to have effect on the effective date of a 
     National Flood Insurance Program rate map revised and updated 
     under subsection (b)(1).
       (2) Reimbursements.--Subsection (b)(4) shall cease to have 
     effect on the date on which the Administrator has made all 
     reimbursements required under subsection (b)(4).

     SEC. 134. ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS 
                   RESIDING IN COMMUNITIES THAT HAVE MADE ADEQUATE 
                   PROGRESS ON THE CONSTRUCTION, RECONSTRUCTION, 
                   OR IMPROVEMENT OF A FLOOD PROTECTION SYSTEM.

       (a) Eligibility for Flood Insurance Coverage.--
       (1) In general.--Notwithstanding any other provision of law 
     (including section 1307(e) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4014(e))), a person residing in a 
     community that the Administrator determines has made adequate 
     progress on the reconstruction or improvement of a flood 
     protection system that will afford flood protection for a 
     100-year floodplain (without regard to the level of Federal 
     funding of or participation in the construction, 
     reconstruction, or improvement), shall be eligible for flood 
     insurance coverage under the National Flood Insurance 
     Program--
       (A) if the person resides in a community that is a 
     participant in the National Flood Insurance Program; and
       (B) at a risk premium rate that does not exceed the risk 
     premium rate that would be chargeable if the flood protection 
     system had been completed.
       (2) Adequate progress.--
       (A) Reconstruction or improvement.--For purposes of 
     paragraph (1), the Administrator shall determine that a 
     community has made adequate progress on the reconstruction or 
     improvement of a flood protection system if--
       (i) 100 percent of the project cost has been authorized;
       (ii) not less than 60 percent of the project cost has been 
     secured or appropriated;
       (iii) not less than 50 percent of the flood protection 
     system has been assessed as being without deficiencies; and
       (iv) the reconstruction or improvement has a project 
     schedule that does not exceed 5 years, beginning on the date 
     on which the reconstruction or construction of the 
     improvement commences.
       (B) Considerations.--In determining whether a flood 
     protection system has been assessed as being without 
     deficiencies, the Administrator shall consider the 
     requirements under section 65.10 of chapter 44, Code of 
     Federal Regulations, or any successor thereto.

[[Page S4475]]

       (b) Termination of Eligibility.--
       (1) Adequate continuing progress.--The Administrator shall 
     issue rules to establish a method of determining whether a 
     community has made adequate continuing progress on the 
     reconstruction or improvement of a flood protection system 
     that includes--
       (A) a requirement that the Administrator shall--
       (i) consult with the owner of the flood protection system--

       (I) 6 months after the date of a determination under 
     subsection (a);
       (II) 18 months after the date of a determination under 
     subsection (a); and
       (III) 36 months after the date of a determination under 
     subsection (a); and

       (ii) after each consultation under clause (i), determine 
     whether the reconstruction or improvement is reasonably 
     likely to be completed in accordance with the project 
     schedule described in subsection (a)(2)(A)(iv); and
       (B) a requirement that, if the Administrator makes a 
     determination under subparagraph (A)(ii) that reconstruction 
     or improvement is not reasonably likely to be completed in 
     accordance with the project schedule, the Administrator 
     shall--
       (i) not later than 30 days after the date of the 
     determination, notify the owner of the flood protection 
     system of the determination and provide the rationale and 
     evidence for the determination; and
       (ii) provide the owner of the flood protection system the 
     opportunity to appeal the determination.
       (2) Termination.--The Administrator shall terminate the 
     eligibility for flood insurance coverage under the National 
     Flood Insurance Program of persons residing in a community 
     with respect to which the Administrator made a determination 
     under subsection (a) if--
       (A) the Administrator determines that the community has not 
     made adequate continuing progress; or
       (B) on the date that is 5 years after the date on which the 
     reconstruction or construction of the improvement commences, 
     the project has not been completed.
       (3) Waiver.--A person whose eligibility would otherwise be 
     terminated under paragraph (2)(B) shall continue to be 
     eligible to purchase flood insurance coverage described in 
     subsection (a) if the Administrator determines--
       (A) the community has made adequate continuing progress on 
     the reconstruction or improvement of a flood protection 
     system; and
       (B) there is a reasonable expectation that the 
     reconstruction or improvement of the flood protection system 
     will be completed not later than 1 year after the date of the 
     determination under this paragraph.
       (4) Risk premium rate.--If the Administrator terminates the 
     eligibility of persons residing in a community to purchase 
     flood insurance coverage described in subsection (a), the 
     Administrator shall establish an appropriate risk premium 
     rate for flood insurance coverage under the National Flood 
     Insurance Program for persons residing in the community that 
     purchased flood insurance coverage before the date on which 
     the termination of eligibility takes effect, taking into 
     consideration the then-current state of the flood protection 
     system.

     SEC. 135. STUDIES AND REPORTS.

       (a) Report on Expanding the National Flood Insurance 
     Program.--Not later than 1 year after the date of enactment 
     of this Act, 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
       (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 Administrator on Activities Under the 
     National Flood Insurance Program.--
       (1) In general.--The Administrator 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 Administrator for 
     mitigation assistance under section 1366(c)(4) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c(c)(4)), 
     as so redesignated by this Act, 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 Administrator as to the average 
     historical loss year, and the basis for that estimate;
       (G) the estimate of the Administrator 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 enactment of this Act, 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. 4014), including the historical basis for the receipt 
     of such subsidy and the extent to which pre-FIRM structures 
     are currently owned by the same owners of the property at the 
     time of the original National Flood Insurance Program rate 
     map;
       (2) number and fair market value of such structures;
       (3) respective income level of the owners of such 
     structures;
       (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 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 a 
     result of structures that are charged a nondiscounted premium 
     rate, on a State-by-State basis; and
       (9) the options for eliminating the subsidy to such 
     structures.
       (d) GAO Review of FEMA Contractors.--The Comptroller 
     General of the United States, in conjunction with the Office 
     of the Inspector General of the Department of Homeland 
     Security, shall--
       (1) conduct a review of the 3 largest contractors the 
     Administrator uses in administering the National Flood 
     Insurance Program; and
       (2) not later than 18 months after the date of enactment of 
     this Act, submit a report on the findings of such review to 
     the Administrator, the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, and the Committee on Financial 
     Services of the House of Representatives.

     SEC. 136. REINSURANCE.

       (a) Reinsurance Assessment.--

[[Page S4476]]

       (1) Private market pricing assessment.--Not later than 12 
     months after the date of enactment of this Act, the 
     Administrator shall submit to Congress a report that--
       (A) assesses the capacity of the private reinsurance, 
     capital, and financial markets to assist communities, on a 
     voluntary basis, in managing the full range of financial 
     risks associated with flooding by requesting proposals to 
     assume a portion of the insurance risk of the National Flood 
     Insurance Program;
       (B) describes any responses to the request for proposals 
     under subparagraph (A);
       (C) assesses whether the rates and terms contained in any 
     proposals received by the Administrator are--
       (i) reasonable and appropriate; and
       (ii) in an amount sufficient to maintain the ability of the 
     National Flood Insurance Program to pay claims;
       (D) describes the extent to which carrying out the 
     proposals received by the Administrator would minimize the 
     likelihood that the Administrator would use the borrowing 
     authority under section 1309 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4016);
       (E) describes fluctuations in historical reinsurance rates; 
     and
       (F) includes an economic cost-benefit analysis of the 
     impact on the National Flood Insurance Program if the 
     Administrator were to exercise the authority under section 
     1335(a)(2) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4055(a)(2)), as added by this section, to secure 
     reinsurance of coverage provided by the National Flood 
     Insurance Program from the private market.
       (2) Protocol for release of data.--The Administrator shall 
     develop a protocol, including adequate privacy protections, 
     to provide for the release of data sufficient to conduct the 
     assessment required under paragraph (1).
       (b) Reinsurance.--The National Flood Insurance Act of 1968 
     (42 U.S.C. 4001 et seq.) is amended--
       (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
     inserting ``, including as reinsurance of 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 striking ``The Director'' and inserting the 
     following:
       ``(1) In general.--The Administrator''; and
       (B) by adding at the end the following:
       ``(2) Private reinsurance.--The Administrator is authorized 
     to secure reinsurance of coverage provided by the flood 
     insurance program from the private market at rates and on 
     terms determined by the Administrator to be reasonable and 
     appropriate, in an amount sufficient to maintain the ability 
     of the program to pay claims.'';
       (4) in section 1346(a) (42 U.S.C. 4082(a))--
       (A) in the matter preceding paragraph (1), by inserting 
     after ``for the purpose of'' the following: ``securing 
     reinsurance of insurance coverage provided by the program or 
     for the purpose 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) by redesignating paragraph (4) as paragraph (5);
       (F) in paragraph (5), as so redesignated, by striking 
     ``otherwise'' and inserting ``Otherwise''; and
       (G) 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 
     striking ``include any'' and all that follows and inserting 
     the following: ``include any organization or person that is 
     authorized to engage in the business of insurance under the 
     laws of any State, 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) and 78o(d)), or 
     authorized by the Administrator to assume reinsurance on 
     risks insured by the flood insurance program;''.
       (c) Assessment of Claims-paying Ability.--
       (1) Assessment.--
       (A) Assessment required.--
       (i) In general.--Not later than September 30 of each year, 
     the Administrator shall conduct an assessment of the ability 
     of the National Flood Insurance Program to pay claims.
       (ii) Private market reinsurance.--The assessment under this 
     paragraph for any year in which the Administrator exercises 
     the authority under section 1335(a)(2) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as added by 
     this section, to secure reinsurance of coverage provided by 
     the National Flood Insurance Program from the private market 
     shall include information relating the use of private sector 
     reinsurance and reinsurance equivalents by the Administrator, 
     whether or not the Administrator used the borrowing authority 
     under section 1309 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016).
       (iii) First assessment.--The Administrator shall conduct 
     the first assessment required under this paragraph not later 
     than September 30, 2012.
       (B) Considerations.--In conducting an assessment under 
     subparagraph (A), the Administrator shall take into 
     consideration regional concentrations of coverage written by 
     the National Flood Insurance Program, peak flood zones, and 
     relevant mitigation measures.
       (2) Annual report of the administrator of activities under 
     the national flood insurance program.--The Administrator 
     shall--
       (A) include the results of each assessment in the report 
     required under section 135(b); and
       (B) not later than 30 days after the date on which the 
     Administrator completes an assessment required under 
     paragraph (1), make the results of the assessment available 
     to the public.

     SEC. 137. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL 
                   LIVING EXPENSES COVERAGES.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study concerning--
       (1) the availability of additional living expenses and 
     business interruption coverage in the private marketplace for 
     flood insurance;
       (2) the feasibility of allowing the National Flood 
     Insurance Program to offer such coverage at the option of the 
     consumer;
       (3) the estimated cost to consumers if the National Flood 
     Insurance Program priced such optional coverage at true 
     actuarial rates;
       (4) the impact such optional coverage would have on 
     consumer participation in the National Flood Insurance 
     Program; and
       (5) the fiscal impact such optional coverage would have 
     upon the National Flood Insurance Fund if such optional 
     coverage were included in the National Flood Insurance 
     Program, as described in paragraph (2), at the price 
     described in paragraph (3).
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General 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 the results of 
     the study under subsection (a).

     SEC. 138. POLICY DISCLOSURES.

       (a) In General.--Notwithstanding any other provision of 
     law, in addition to any other disclosures that may be 
     required, each policy under the National Flood Insurance 
     Program shall state all conditions, exclusions, and other 
     limitations pertaining to coverage under the subject policy, 
     regardless of the underlying insurance product, in plain 
     English, in boldface type, and in a font size that is twice 
     the size of the text of the body of the policy.
       (b) Violations.--The Administrator may impose a civil 
     penalty of not more than $50,000 on any person that fails to 
     comply with subsection (a).

     SEC. 139. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
                   MANAGEMENT CRITERIA.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator of the Federal Emergency Management 
     Agency 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 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;
       (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 codes or any 
     applicable local building codes provides greater protection 
     from flood damage;
       (7) the impact of such a building code requirement on rural 
     communities with different building code challenges than 
     urban communities; and
       (8) the impact of such a building code requirement on 
     Indian reservations.

     SEC. 140. STUDY OF PARTICIPATION AND AFFORDABILITY FOR 
                   CERTAIN POLICYHOLDERS.

       (a) FEMA Study.--The Administrator shall conduct a study 
     of--
       (1) methods to encourage and maintain participation in the 
     National Flood Insurance Program;

[[Page S4477]]

       (2) methods to educate consumers about the National Flood 
     Insurance Program and the flood risk associated with their 
     property;
       (3) methods for establishing an affordability framework for 
     the National Flood Insurance Program, including methods to 
     aid individuals to afford risk-based premiums under the 
     National Flood Insurance Program through targeted assistance 
     rather than generally subsidized rates, including means-
     tested vouchers; and
       (4) the implications for the National Flood Insurance 
     Program and the Federal budget of using each such method.
       (b) National Academy of Sciences Economic Analysis.--To 
     inform the Administrator in the conduct of the study under 
     subsection (a), the Administrator shall enter into a contract 
     under which the National Academy of Sciences, in consultation 
     with the Comptroller General of the United States, shall 
     conduct and submit to the Administrator an economic analysis 
     of the costs and benefits to the Federal Government of a 
     flood insurance program with full risk-based premiums, 
     combined with means-tested Federal assistance to aid 
     individuals who cannot afford coverage, through an insurance 
     voucher program. The analysis shall compare the costs of a 
     program of risk-based rates and means-tested assistance to 
     the current system of subsidized flood insurance rates and 
     federally funded disaster relief for people without coverage.
       (c) Report.--Not later than 270 days after the date of 
     enactment of this Act, the Administrator 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 that contains the results of the 
     study and analysis under this section.
       (d) Funding.--Notwithstanding section 1310 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be 
     available to the Administrator from the National Flood 
     Insurance Fund, of amounts not otherwise obligated, not more 
     than $750,000 to carry out this section.

     SEC. 141. STUDY AND REPORT CONCERNING THE PARTICIPATION OF 
                   INDIAN TRIBES AND MEMBERS OF INDIAN TRIBES IN 
                   THE NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Definition.--In this section, the term ``Indian tribe'' 
     has the meaning given that term in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).
       (b) Findings.--Congress finds that participation by Indian 
     tribes in the National Flood Insurance Program is low. Only 
     45 of 565 Indian tribes participate in the National Flood 
     Insurance Program.
       (c) Study.--The Comptroller General of the United States, 
     in coordination and consultation with Indian tribes and 
     members of Indian tribes throughout the United States, shall 
     carry out a study that examines--
       (1) the factors contributing to the current rates of 
     participation by Indian tribes and members of Indian tribes 
     in the National Flood Insurance Program; and
       (2) methods of encouraging participation by Indian tribes 
     and members of Indian tribes in the National Flood Insurance 
     Program.
       (d) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report that--
       (1) contains the results of the study carried out under 
     subsection (c);
       (2) describes the steps that the Administrator should take 
     to increase awareness and encourage participation by Indian 
     tribes and members of Indian tribes in the National Flood 
     Insurance Program; and
       (3) identifies any legislative changes that would encourage 
     participation by Indian tribes and members of Indian tribes 
     in the National Flood Insurance Program.

     SEC. 142. TECHNICAL CORRECTIONS.

       (a) Flood Disaster Protection Act of 1973.--The Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is 
     amended--
       (1) by striking ``Director'' each place that term appears, 
     except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and 
     inserting ``Administrator''; and
       (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
     ``Director's'' and inserting ``Administrator's''.
       (b) National Flood Insurance Act of 1968.--The National 
     Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 
     amended--
       (1) by striking ``Director'' each place that term appears 
     and inserting ``Administrator'';
       (2) in section 1363 (42 U.S.C. 4104), by striking 
     ``Director's'' each place that term appears and inserting 
     ``Administrator's''; and
       (3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), by 
     striking ``the Office of Thrift Supervision,''.
       (c) Federal Flood Insurance Act of 1956.--Section 15(e) of 
     the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) 
     is amended by striking ``Director'' each place that term 
     appears and inserting ``Administrator''.

     SEC. 143. PRIVATE FLOOD INSURANCE POLICIES.

       (a) Definitions.--In this section the following definitions 
     shall apply:
       (1) Guidelines.--The term ``Guidelines'' means the 
     Mandatory Purchase of Flood Insurance Guidelines issued by 
     the Administrator.
       (2) State entity for lending regulation.--The term ``State 
     entity for lending regulation'' means, with respect to a 
     State, the entity or agency with primary responsibility for 
     the supervision of lending institutions chartered by the 
     State and not insured by the Federal Deposit Insurance 
     Corporation or the National Credit Union Administration.
       (b) Amendments Required.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Administrator shall amend the 
     Guidelines to clarify that a lender or a lending institution 
     chartered by a State and not insured by the Federal Deposit 
     Insurance Corporation or the National Credit Union 
     Administration may accept a private primary flood insurance 
     policy in lieu of a National Flood Insurance Program flood 
     policy to satisfy the mandatory purchase requirements under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a), if the private primary flood insurance 
     policy--
       (A) is available for sale under the laws of the State in 
     which the private primary flood insurance policy is to be 
     written;
       (B) meets the minimum requirements for flood insurance 
     coverage under subsections (a) and (b) of such section 102; 
     and
       (C) meets any applicable Federal regulations.
       (2) State law considerations.--Neither the Guidelines nor 
     the amendments made under paragraph (1) shall preempt any 
     State insurance law, regulation, or guidance.
       (c) Notification.--
       (1) To federal and state entities for lending regulation.--
     Not later than 30 days after the date on which the 
     Administrator amends the Guidelines under subsection (b), the 
     Administrator shall notify the Federal entities for lending 
     regulation and the State entities for lending regulation of 
     the amendment, in order to encourage the acceptance of 
     private primary flood insurance in lieu of a National Flood 
     Insurance Program flood policy to satisfy the mandatory 
     purchase requirements under section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a).
       (2) To lenders.--The Administrator and each Federal entity 
     for lending regulation shall include the notification 
     required under paragraph (1) in any edition of a publication 
     that the Administrator or Federal entity for lending 
     regulation provides to lenders that is published after the 
     date of enactment of this Act.
       (d) Training.--Not later than 60 days after the date on 
     which the Administrator makes the notification under 
     subsection (c), the Federal entities for lending regulation 
     shall train each employee having responsibility for 
     compliance audits to implement the amendments to the 
     Guidelines under subsection (b).

    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 2012''.

     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--

[[Page S4478]]

       (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 or local 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.
       (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 or private 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 
     risk-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's provision of 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 Act, 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 a 
     vote of 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 the 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.

[[Page S4479]]

       (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
       (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.

                 TITLE III--ALTERNATIVE LOSS ALLOCATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012'' or the 
     ``COASTAL Act of 2012''.

     SEC. 302. ASSESSING AND MODELING NAMED STORMS OVER COASTAL 
                   STATES.

       Subtitle C of title XII of the Omnibus Public Land 
     Management Act of 2009 (33 U.S.C. 3601 et seq.) (also known 
     as the ``Integrated Coastal and Ocean Observation System Act 
     of 2009'') is amended by adding at the end the following:

     ``SEC. 12312. ASSESSING AND MODELING NAMED STORMS OVER 
                   COASTAL STATES.

       ``(a) Definitions.--In this section:
       ``(1) COASTAL formula.--The term `COASTAL Formula' has the 
     meaning given the term in section 1337(a) of the National 
     Flood Insurance Act of 1968.
       ``(2) Coastal state.--The term `coastal State' has the 
     meaning given the term `coastal state' in section 304 of the 
     Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
       ``(3) Coastal waters.--The term `coastal waters' has the 
     meaning given the term in such section.
       ``(4) Covered data.--The term `covered data' means, with 
     respect to a named storm identified by the Administrator 
     under subsection (b)(2)(A), empirical data that are--
       ``(A) collected before, during, or after such storm; and
       ``(B) necessary to determine magnitude and timing of wind 
     speeds, rainfall, the barometric pressure, river flows, the 
     extent, height, and timing of storm surge, topographic and 
     bathymetric data, and other measures required to accurately 
     model and assess damage from such storm.
       ``(5) Indeterminate loss.--The term `indeterminate loss' 
     has the meaning given the term in section 1337(a) of the 
     National Flood Insurance Act of 1968.
       ``(6) Named storm.--The term `named storm' means any 
     organized weather system with a defined surface circulation 
     and maximum winds of at least 39 miles per hour which the 
     National Hurricane Center of the United States National 
     Weather Service names as a tropical storm or a hurricane.
       ``(7) Named storm event model.--The term `Named Storm Event 
     Model' means the official meteorological and oceanographic 
     computerized model, developed by the Administrator under 
     subsection (b)(1)(A), which utilizes covered data to 
     replicate the magnitude, timing, and spatial variations of 
     winds, rainfall, and storm surges associated with named 
     storms that threaten any portion of a coastal State.
       ``(8) Participant.--The term `participant' means a Federal, 
     State, or private entity that chooses to cooperate with the 
     Administrator in carrying out the provisions of this section 
     by collecting, contributing, and maintaining covered data.
       ``(9) Post-storm assessment.--The term `post-storm 
     assessment' means a scientific assessment produced and 
     certified by the Administrator to determine the magnitude, 
     timing, and spatial variations of winds, rainfall, and storm 
     surges associated with a specific named storm to be used in 
     the COASTAL Formula.
       ``(10) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and any other territory or possession of the United 
     States.
       ``(b) Named Storm Event Model and Post-storm Assessment.--
       ``(1) Establishment of named storm event model.--
       ``(A) In general.--Not later than 540 days after the date 
     of the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall develop by regulation the Named Storm Event Model.
       ``(B) Accuracy.--The Named Storm Event Model shall be 
     designed to generate post-storm assessments, as provided in 
     paragraph (2), that have a degree of accuracy of not less 
     than 90 percent for every indeterminate loss for which a 
     post-storm assessment is utilized.
       ``(2) Post-storm assessment.--
       ``(A) Identification of named storms threatening coastal 
     states.--After the establishment of the COASTAL Formula, the 
     Administrator shall, in consultation with the Secretary of 
     Homeland Security, identify named storms that may reasonably 
     constitute a threat to any portion of a coastal State.
       ``(B) Post-storm assessment required.--Upon identification 
     of a named storm under subparagraph (A), the Administrator 
     shall develop a post-storm assessment for such named storm 
     using the Named Storm Event Model and covered data collected 
     for such named storm pursuant to the protocol established 
     under subsection (c)(1).
       ``(C) Submittal of post-storm assessment.--Not later than 
     90 days after an identification of a named storm is made 
     under subparagraph (A), the Administrator shall submit to the 
     Secretary of Homeland Security the post-storm assessment 
     developed for such storm under subparagraph (B).
       ``(3) Accuracy.--The Administrator shall ensure, to the 
     greatest extent practicable, that each post-storm assessment 
     developed under paragraph (2) has a degree of accuracy of not 
     less than 90 percent.
       ``(4) Certification.--For each post-storm assessment 
     carried out under paragraph (2), the Administrator shall--
       ``(A) certify the degree of accuracy for such assessment, 
     including specific reference to any segments or geographic 
     areas for which the assessment is less than 90 percent 
     accurate; and
       ``(B) report such certification to the Secretary of 
     Homeland Security for the purposes of use with indeterminate 
     loss claims under section 1337 of the National Flood 
     Insurance Act of 1968.
       ``(5) Finality of determinations.--A certification of the 
     degree of accuracy of a post-storm assessment under this 
     subsection by the Administrator shall be final and shall not 
     be subject to judicial review.
       ``(6) Availability.--The Administrator shall make available 
     to the public the Named Storm Event Model and any post-storm 
     assessment developed under this subsection.
       ``(c) Establishment of a Protocol for Post-storm 
     Assessment.--
       ``(1) In general.--Not later than 540 days after the date 
     of the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall establish a protocol, based on the plan submitted under 
     subsection (d)(3), to collect and assemble all covered data 
     required by the Administrator to produce post-storm 
     assessments required by subsection (b), including assembling 
     data collected by participants and stored in the database 
     established under subsection (f) and from such

[[Page S4480]]

     other sources as the Administrator considers appropriate.
       ``(2) Acquisition of sensors and structures.--If the 
     Administrator is unable to use a public or private asset to 
     obtain covered data as part of the protocol established under 
     paragraph (1), the Administrator may acquire such sensors and 
     structures for the placement of sensors as may be necessary 
     to obtain such data.
       ``(3) Use of federal assets.--If the protocol requires 
     placement of a sensor to develop assessments pursuant to 
     subsection (b), the Administrator shall, to the extent 
     practicable, use Federal assets for the placement of such 
     sensors.
       ``(4) Use of acquired structures.--
       ``(A) In general.--If the Administrator acquires a 
     structure for the placement of a sensor for purposes of such 
     protocol, the Administrator shall to the extent practical 
     permit other public and private entities to place sensors on 
     such structure to collect--
       ``(i) meteorological data;
       ``(ii) national security-related data;
       ``(iii) navigation-related data;
       ``(iv) hydrographic data; or
       ``(v) such other data as the Administrator considers 
     appropriate.
       ``(B) Receipt of consideration.--The Administrator may 
     receive consideration for the placement of a sensor on a 
     structure under subparagraph (A).
       ``(C) In-kind consideration.--Consideration received under 
     subparagraph (B) may be received in-kind.
       ``(D) Use of consideration.--To the extent practicable, 
     consideration received under subparagraph (B) shall be used 
     for the maintenance of sensors used to collect covered data.
       ``(5) Coordinated deployments and data collection 
     practices.--The Administrator shall, in consultation with the 
     Office of the Federal Coordinator for Meteorology, coordinate 
     the deployment of sensors as part of the protocol established 
     under paragraph (1) and related data collection carried out 
     by Federal, State, academic, and private entities who choose 
     to cooperate with the Administrator in carrying out this 
     subsection.
       ``(6) Priority acquisition and deployment.--The 
     Administrator shall give priority in the acquisition for and 
     deployment of sensors under the protocol required by 
     paragraph (1) to areas of coastal States that have the 
     highest risk of being harmed by named storms.
       ``(d) Assessment of Systems and Efforts to Collect Covered 
     Data.--
       ``(1) Identification of systems and efforts to collect 
     covered data.--Not later than 180 days after the date of the 
     enactment of the Consumer Option for an Alternative System to 
     Allocate Losses Act of 2012, the Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology--
       ``(A) carry out a survey to identify all Federal and State 
     efforts and systems that are capable of collecting covered 
     data; and
       ``(B) consult with private and academic sector entities to 
     identify domestic private and academic systems that are 
     capable of collecting covered data.
       ``(2) Identification of gaps.--The Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology and individuals and entities consulted under 
     subsection (e)(3), assess the systems identified under 
     paragraph (1) and identify which systems meet the needs of 
     the National Oceanic and Atmospheric Administration for the 
     collection of covered data, including with respect to the 
     accuracy requirement for post-storm assessment under 
     subsection (b)(3).
       ``(3) Plan.--Not later than 270 days after the date of the 
     enactment of the Consumer Option for an Alternative System to 
     Allocate Losses Act of 2012, the Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology, submit to Congress a plan for the collection of 
     covered data necessary to develop the Named Storm Event Model 
     and post-storm assessment required by subsection (b) that 
     addresses any gaps identified in paragraph (2).
       ``(e) Coordination of Covered Data Collection and 
     Maintenance by Participants.--
       ``(1) In general.--The Administrator shall, in consultation 
     with the Office of the Federal Coordinator for Meteorology, 
     coordinate the collection and maintenance of covered data by 
     participants under this section--
       ``(A) to streamline the process of collecting covered data 
     in accordance with the protocol established under subsection 
     (c)(1); and
       ``(B) to maintain transparency of such process and the 
     database established under subsection (f).
       ``(2) Sharing information.--The Administrator shall 
     establish a process for sharing among participants 
     information relevant to collecting and using covered data 
     for--
       ``(A) academic research;
       ``(B) private sector use;
       ``(C) public outreach; and
       ``(D) such other purposes as the Administrator considers 
     appropriate.
       ``(3) Consultation.--In carrying out paragraphs (1) and 
     (2), the Administrator shall consult with the following:
       ``(A) The Commanding General of the United States Army 
     Corps of Engineers.
       ``(B) The Administrator of the Federal Emergency Management 
     Agency.
       ``(C) The Commandant of the Coast Guard.
       ``(D) The Director of the United States Geological Survey.
       ``(E) The Office of the Federal Coordinator for 
     Meteorology.
       ``(F) The Director of the National Science Foundation.
       ``(G) The Administrator of the National Aeronautics and 
     Space Administration.
       ``(H) Such public, private, and academic sector entities as 
     the Administrator considers appropriate for purposes of 
     carrying out the provisions of this section.
       ``(f) Establishment of Coastal Wind and Water Event 
     Database.--
       ``(1) In general.--Not later than 1 year after the date of 
     the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall establish a database for the collection and compilation 
     of covered data--
       ``(A) to support the protocol established under subsection 
     (c)(1); and
       ``(B) for the purposes listed in subsection (e)(2).
       ``(2) Designation.--The database established under 
     paragraph (1) shall be known as the `Coastal Wind and Water 
     Event Database'.
       ``(g) Comptroller General Study.--Not later than 1 year 
     after the date of the enactment of the Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012, the 
     Comptroller General of the United States shall--
       ``(1) complete an audit of Federal efforts to collect 
     covered data for purposes of the Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012, which 
     audit shall--
       ``(A) examine duplicated Federal efforts to collect covered 
     data; and
       ``(B) determine the cost effectiveness of such efforts; and
       ``(2) submit to the Committee on Banking, Housing, and 
     Urban Affairs and the Commerce, Science, and Transportation 
     of the Senate and the Committee on Financial Services and the 
     Committee on Science, Space, and Technology of the House of 
     Representatives a report on the findings of the Comptroller 
     General with respect to the audit completed under paragraph 
     (1).''.

     SEC. 303. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR 
                   INDETERMINATE CLAIMS.

       Part A of chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4051 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 1337. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR 
                   INDETERMINATE CLAIMS.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Emergency Management Agency.
       ``(2) COASTAL formula.--The term `COASTAL Formula' means 
     the formula established under subsection (b).
       ``(3) Coastal state.--The term `coastal State' has the 
     meaning given the term `coastal state' in section 304 of the 
     Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
       ``(4) Indeterminate loss.--
       ``(A) In general.--The term `indeterminate loss' means, as 
     determined by an insurance claims adjuster certified under 
     the national flood insurance program and in consultation with 
     an engineer as appropriate, a loss resulting from physical 
     damage to, or loss of, property located in any coastal State 
     arising from the combined perils of flood and wind associated 
     with a named storm.
       ``(B) Requirements.--An insurance claims adjuster certified 
     under the national flood insurance program shall only 
     determine that a loss is an indeterminate loss if the claims 
     adjuster determines that--
       ``(i) no material remnant of physical buildings or man-made 
     structures remain except building foundations for the 
     specific property for which the claim is made; and
       ``(ii) there is insufficient or no tangible evidence 
     created, yielded, or otherwise left behind of the specific 
     property for which the claim is made as a result of the named 
     storm.
       ``(5) Named storm.--The term `named storm' means any 
     organized weather system with a defined surface circulation 
     and maximum winds of not less than 39 miles per hour which 
     the National Hurricane Center of the United States National 
     Weather Service names as a tropical storm or a hurricane.
       ``(6) Post-storm assessment.--The term `post-storm 
     assessment' means the post-storm assessment developed under 
     section 12312(b) of the Omnibus Public Land Management Act of 
     2009.
       ``(7) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and any other territory or possession of the United 
     States.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Homeland Security.
       ``(9) Standard insurance policy.--The term `standard 
     insurance policy' means any insurance policy issued under the 
     national flood insurance program that covers loss or damage 
     to property resulting from water peril.
       ``(10) Property.--The term `property' means real or 
     personal property that is insured under a standard insurance 
     policy for loss or damage to structure or contents.
       ``(11) Under secretary.--The term `Under Secretary' means 
     the Under Secretary of Commerce for Oceans and Atmosphere, in 
     the Under Secretary's capacity as Administrator of the 
     National Oceanic and Atmospheric Administration.
       ``(b) Establishment of Flood Loss Allocation Formula for 
     Indeterminate Claims.--

[[Page S4481]]

       ``(1) In general.--Not later than 180 days after the date 
     on which the protocol is established under section 
     12312(c)(1) of the Omnibus Public Land Management Act of 
     2009, the Secretary, acting through the Administrator and in 
     consultation with the Under Secretary, shall establish by 
     rule a standard formula to determine and allocate wind losses 
     and flood losses for claims involving indeterminate losses.
       ``(2) Contents.--The standard formula established under 
     paragraph (1) shall--
       ``(A) incorporate data available from the Coastal Wind and 
     Water Event Database established under section 12312(f) of 
     the Omnibus Public Land Management Act of 2009;
       ``(B) use relevant data provided on the National Flood 
     Insurance Program Elevation Certificate for each 
     indeterminate loss for which the formula is used;
       ``(C) consider any sufficient and credible evidence, 
     approved by the Administrator, of the pre-event condition of 
     a specific property, including the findings of any 
     policyholder or insurance claims adjuster in connection with 
     the indeterminate loss to that specific property;
       ``(D) include other measures, as the Administrator 
     considers appropriate, required to determine and allocate by 
     mathematical formula the property damage caused by flood or 
     storm surge associated with a named storm; and
       ``(E) subject to paragraph (3), for each indeterminate 
     loss, use the post-storm assessment to allocate water damage 
     (flood or storm surge) associated with a named storm.
       ``(3) Degree of accuracy required.--The standard formula 
     established under paragraph (1) shall specify that the 
     Administrator may only use the post-storm assessment for 
     purposes of the formula if the Under Secretary certifies that 
     the post-storm assessment has a degree of accuracy of not 
     less than 90 percent in connection with the specific 
     indeterminate loss for which the assessment and formula are 
     used.
       ``(c) Authorized Use of Post-storm Assessment and COASTAL 
     Formula.--
       ``(1) In general.--Subject to paragraph (3), the 
     Administrator may use the post-storm assessment and the 
     COASTAL Formula to--
       ``(A) review flood loss payments for indeterminate losses, 
     including as part of the quality assurance reinspection 
     program of the Federal Emergency Management Agency for claims 
     under the national flood insurance program and any other 
     process approved by the Administrator to review and validate 
     payments under the national flood insurance program for 
     indeterminate losses following a named storm; and
       ``(B) assist the national flood insurance program to--
       ``(i) properly cover qualified flood loss for claims for 
     indeterminate losses; and
       ``(ii) avoid paying for any loss or damage to property 
     caused by any peril (including wind), other than flood or 
     storm surge, that is not covered under a standard policy 
     under the national flood insurance program.
       ``(2) Federal disaster declaration.--Subject to paragraph 
     (3), in order to expedite claims and reduce costs to the 
     national flood insurance program, following any major 
     disaster declared by the President under section 401 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5170) relating to a named storm in a coastal 
     State, the Administrator may use the COASTAL Formula to 
     determine and pay for any flood loss covered under a standard 
     insurance policy under the national flood insurance program, 
     if the loss is an indeterminate loss.
       ``(3) National academy of sciences evaluation.--
       ``(A) Evaluation required.--
       ``(i) Evaluation.--Upon the issuance of the rule 
     establishing the COASTAL Formula, and each time the 
     Administrator modifies the COASTAL Formula, the National 
     Academy of Sciences shall--

       ``(I) evaluate the expected financial impact on the 
     national flood insurance program of the use of the COASTAL 
     Formula as so established or modified; and
       ``(II) evaluate the validity of the scientific assumptions 
     upon which the formula is based and determine whether the 
     COASTAL formula can achieve a degree of accuracy of not less 
     than 90 percent in allocating flood losses for indeterminate 
     losses.

       ``(ii) Report.--The National Academy of Sciences shall 
     submit a report containing the results of each evaluation 
     under clause (i) to the Administrator, the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Financial Services and the Committee on Science, 
     Space, and Technology of the House of Representatives.
       ``(B) Effective date and applicability.--
       ``(i) Effective date.--Paragraphs (1) and (2) of this 
     subsection shall not take effect unless the report under 
     subparagraph (A) relating to the establishment of the COASTAL 
     Formula concludes that the use of the COASTAL Formula for 
     purposes of paragraph (1) and (2) would not have an adverse 
     financial impact on the national flood insurance program and 
     that the COASTAL Formula is based on valid scientific 
     assumptions that would allow a degree of accuracy of not less 
     than 90 percent to be achieved in allocating flood losses for 
     indeterminate losses.
       ``(ii) Effect of modifications.--Unless the report under 
     subparagraph (A) relating to a modification of the COASTAL 
     Formula concludes that the use of the COASTAL Formula, as so 
     modified, for purposes of paragraphs (1) and (2) would not 
     have an adverse financial impact on the national flood 
     insurance program and that the COASTAL Formula is based on 
     valid scientific assumptions that would allow a degree of 
     accuracy of not less than 90 percent to be achieved in 
     allocating flood losses for indeterminate losses the 
     Administrator may not use the COASTAL Formula, as so 
     modified, for purposes of paragraphs (1) and (2).
       ``(C) Funding.--Notwithstanding section 1310 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017), there 
     shall be available to the Administrator from the National 
     Flood Insurance Fund, of amounts not otherwise obligated, not 
     more than $750,000 to carry out this paragraph.
       ``(d) Disclosure of COASTAL Formula.--Not later than 30 
     days after the date on which a post-storm assessment is 
     submitted to the Secretary under section 12312(b)(2)(C) of 
     the Omnibus Public Land Management Act of 2009, for each 
     indeterminate loss for which the COASTAL Formula is used 
     pursuant to subsection (c)(2), the Administrator shall 
     disclose to the policyholder that makes a claim relating to 
     the indeterminate loss--
       ``(1) that the Administrator used the COASTAL Formula with 
     respect to the indeterminate loss; and
       ``(2) a summary of the results of the use of the COASTAL 
     Formula.
       ``(e) Consultation.--In carrying out subsections (b) and 
     (c), the Secretary shall consult with--
       ``(1) the Under Secretary for Oceans and Atmosphere;
       ``(2) the Director of the National Institute of Standards 
     and Technology;
       ``(3) the Chief of Engineers of the United States Army 
     Corps of Engineers;
       ``(4) the Director of the United States Geological Survey;
       ``(5) the Office of the Federal Coordinator for 
     Meteorology;
       ``(6) State insurance regulators of coastal States; and
       ``(7) such public, private, and academic sector entities as 
     the Secretary considers appropriate for purposes of carrying 
     out such subsections.
       ``(f) Recordkeeping.--Each consideration and measure the 
     Administrator determines necessary to carry out subsection 
     (b) may be required, with advanced approval of the 
     Administrator, to be provided for on the National Flood 
     Insurance Program Elevation Certificate, or maintained 
     otherwise on record if approved by the Administrator, for any 
     property that qualifies for the COASTAL Formula under 
     subsection (c).
       ``(g) Civil Penalty.--
       ``(1) In general.--If an insurance claims adjuster 
     knowingly and willfully makes a false or inaccurate 
     determination relating to an indeterminate loss, the 
     Administrator may, after notice and opportunity for hearing, 
     impose on the insurance claims adjuster a civil penalty of 
     not more than $1,000.
       ``(2) Deposit.--Notwithstanding section 3302 of title 31, 
     United States Code, or any other law relating to the 
     crediting of money, the Administrator shall deposit in the 
     National Flood Insurance Fund any amounts received under this 
     subsection, which shall remain available until expended and 
     be available to the Administrator for purposes authorized for 
     the National Flood Insurance Fund without further 
     appropriation.
       ``(h) Rule of Construction.--Nothing in this subsection 
     shall be construed to require the Administrator to make any 
     payment under the national flood insurance program, or an 
     insurance company to make any payment, for an indeterminate 
     loss based upon post-storm assessment or the COASTAL Formula.
       ``(i) Applicability.--Subsection (c) shall apply with 
     respect to an indeterminate loss associated with a named 
     storm that occurs after the date on which the Administrator 
     issues the rule establishing the COASTAL Formula under 
     subsection (b).
       ``(j) Rule of Construction.--Nothing in this subsection 
     shall be construed to negate, set aside, or void any policy 
     limit, including any loss limitation, set forth in a standard 
     insurance policy.''.
                                 ______
                                 
  SA 2469. Mr. REID (for Mr. Pryor (for himself and Mr. Hoeven)) 
proposed an amendment to amendment SA 2468 proposed by Mr. Reid (for 
Mr. Johnson of South Dakota (for himself and Mr. Shelby)) to the bill 
S. 1940, to amend the National Flood Insurance Act of 1968, to restore 
the financial solvency of the flood insurance fund, and for other 
purposes; as follows:

       Strike section 107 and insert the following:

     SEC. 107. AREAS OF RESIDUAL RISK.

       (a) Areas of Residual Risk.--
       (1) Definition.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Technical Mapping Advisory Council established under 
     section 117, shall establish a definition of the term ``area 
     of residual risk'', for purposes of the National Flood 
     Insurance Program, that is limited to areas that are not 
     areas having special flood hazards.
       (2) This section.--In this section, the term ``area of 
     residual risk'' has the meaning established by the 
     Administrator under paragraph (1).
       (b) Study and Report on Mandatory Purchase Requirements in 
     Areas of Residual Risk.--
       (1) Study.--

[[Page S4482]]

       (A) In general.--The Comptroller General of the United 
     States shall conduct a study assessing the potential impact 
     and effectiveness of applying the mandatory purchase 
     requirements under sections 102 and 202 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a and 4106) to 
     properties located in areas of residual risk.
       (B) Areas of study.--In carrying out the study required 
     under subparagraph (A), the Comptroller General shall 
     evaluate--
       (i) the regulatory, financial, and economic impact of 
     applying the mandatory purchase requirements described in 
     subparagraph (A) to areas of residual risk on--

       (I) the costs of homeownership;
       (II) the actuarial soundness of the National Flood 
     Insurance Program;
       (III) the Federal Emergency Management Agency;
       (IV) communities located in areas of residual risk;
       (V) insurance companies participating in the National Flood 
     Insurance Program; and
       (VI) the Disaster Relief Fund;

       (ii) the effectiveness of the mandatory purchase 
     requirements in protecting--

       (I) homeowners and taxpayers in the United States from 
     financial loss; and
       (II) the financial soundness of the National Flood 
     Insurance Program;

       (iii) the impact on lenders of complying with or enforcing 
     the mandatory purchase requirements;
       (iv) the methodology that the Administrator uses to 
     adequately estimate the varying levels of residual risk 
     behind levees and other flood control structures; and
       (v) the extent to which the risk premium rates under the 
     National Flood Insurance Program for property in the areas of 
     residual risk behind levees adequately account for--

       (I) the design of the levees;
       (II) the soundness of the levees;
       (III) the hydrography of the areas of residual risk; and
       (IV) any historical flooding in the areas of residual risk.

       (2) Reports.--
       (A) Initial report.--Not later than 12 months after the 
     date on which the Administrator establishes a definition of 
     the term ``area of residual risk'' under subsection (a)(1), 
     the Comptroller General shall submit to Congress a report 
     that--
       (i) contains the results of the study required under 
     paragraph (1); and
       (ii) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.
       (B) Updated report.--Not later than 5 years after the date 
     on which the Comptroller General submits the report under 
     subparagraph (A), the Comptroller General shall--
       (i) update the study conducted under paragraph (1); and
       (ii) submit to Congress an updated report that--

       (I) contains the results of the updated study required 
     under clause (i); and
       (II) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.

       (3) Adjustment of methodologies.--The Administrator shall, 
     to the extent practicable, adjust the methodologies used to 
     estimate the varying levels of residual risk behind levees 
     and other flood control structures based on the 
     recommendations submitted by the Comptroller General under 
     subparagraphs (A)(ii) and (B)(ii)(II).
       (c) Study of Voluntary Community-based Flood Insurance 
     Options.--
       (1) Study.--
       (A) Study required.--The Administrator shall conduct a 
     study to assess options, methods, and strategies for making 
     available voluntary community-based flood insurance policies 
     through the National Flood Insurance Program.
       (B) Considerations.--The study conducted under subparagraph 
     (A) shall--
       (i) take into consideration and analyze how voluntary 
     community-based flood insurance policies--

       (I) would affect communities having varying economic bases, 
     geographic locations, flood hazard characteristics or 
     classifications, and flood management approaches; and
       (II) could satisfy the applicable requirements under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a); and

       (ii) evaluate the advisability of making available 
     voluntary community-based flood insurance policies to 
     communities, subdivisions of communities, and areas of 
     residual risk.
       (C) Consultation.--In conducting the study required under 
     subparagraph (A), the Administrator may consult with the 
     Comptroller General of the United States, as the 
     Administrator determines is appropriate.
       (2) Report by the administrator.--
       (A) Report required.--Not later than 18 months after the 
     date of enactment of this Act, the Administrator 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 that contains the results 
     and conclusions of the study conducted under paragraph (1).
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include recommendations for--
       (i) the best manner to incorporate voluntary community-
     based flood insurance policies into the National Flood 
     Insurance Program; and
       (ii) a strategy to implement voluntary community-based 
     flood insurance policies that would encourage communities to 
     undertake flood mitigation activities, including the 
     construction, reconstruction, or improvement of levees, dams, 
     or other flood control structures.
       (3) Report by comptroller general.--Not later than 6 months 
     after the date on which the Administrator submits the report 
     required under paragraph (2), the Comptroller General of the 
     United States shall--
       (A) review the report submitted by the Administrator; and
       (B) 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 that contains--
       (i) an analysis of the report submitted by the 
     Administrator;
       (ii) any comments or recommendations of the Comptroller 
     General relating to the report submitted by the 
     Administrator; and
       (iii) any other recommendations of the Comptroller General 
     relating to community-based flood insurance policies.
                                 ______
                                 
  SA 2470. Mr. REID proposed an amendment to amendment SA 2469 proposed 
by Mr. Reid (for Mr. Pryor (for himself and Mr. Hoeven)) to the 
amendment SA 2468 proposed by Mr. Reid (for Mr. Johnson of South Dakota 
(for himself and Mr. Shelby)) to the bill S. 1940, to amend the 
National Flood Insurance Act of 1968, to restore the financial solvency 
of the flood insurance fund, and for other purposes; as follows:

       At the end, add the following new section:

     SEC. __.

       This Act shall become effective 7 days after enactment.
                                 ______
                                 
  SA 2471. Mr. REID proposed an amendment to the bill S. 1940, to amend 
the National Flood Insurance Act of 1968, to restore the financial 
solvency of the flood insurance fund, and for other purposes; as 
follows:

       At the end, add the following new section:

     SEC. __.

       This title shall become effective 5 days after enactment.
                                 ______
                                 
  SA 2472. Mr. REID proposed an amendment to the amendment SA 2471 
proposed by Mr. Reid to the bill S. 1940, to amend the National Flood 
Insurance Act of 1968, to restore the financial solvency of the flood 
insurance fund, and for other purposes; as follows:

       In the amendment, strike ``5 days'' and insert ``4 days''.
                                 ______
                                 
  SA 2473. Mr. REID proposed an amendment to the bill S. 1940, to amend 
the National Flood Insurance Act of 1968, to restore the financial 
solvency of the flood insurance fund, and for other purposes; as 
follows:

       At the end, add the following new section:

     SEC. __.

       This Act shall become effective 3 days after enactment.
                                 ______
                                 
  SA 2474. Mr. REID proposed an amendment to amendment SA 2473 proposed 
by Mr. Reid to the bill S. 1940, to amend the National Flood Insurance 
Act of 1968, to restore the financial solvency of the flood insurance 
fund, and for other purposes; as follows:

       In the amendment, strike ``3 days'' and insert ``2 days''.
                                 ______
                                 
  SA 2475. Mr. REID proposed an amendment to amendment SA 2474 proposed 
by Mr. Reid to the amendment SA 2473 proposed by Mr. Reid to the bill 
S. 1940, to amend the National Flood Insurance Act of 1968, to restore 
the financial solvency of the flood insurance fund, and for other 
purposes; as follows:

       In the amendment, strike ``2 days'' and insert ``1 day''.
                                 ______
                                 
  SA 2476. Mr. LEE submitted an amendment intended to be proposed by 
him to the bill S. 1940, 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 of title I, add the following:

     SEC. 1__. PRIORITIZATION OF PRIVATE FLOOD INSURANCE.

       Section 1304 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4011), as amended by this Act, is amended by 
     adding at the end the following:
       ``(d) Prioritization of Private Flood Insurance.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `private flood insurance'--

[[Page S4483]]

       ``(i) means a contract for flood insurance coverage allowed 
     for sale under the laws of any State; and
       ``(ii) does not include flood insurance provided or funded 
     under any program of the Federal Emergency Management Agency, 
     including the national flood insurance program; and
       ``(B) the term `State insurance regulator' has the meaning 
     given the term in section 313(r) of title 31, United States 
     Code.
       ``(2) Minimum standards for private flood insurance.--
       ``(A) State-specific standards.--For purposes of this 
     subsection, a State insurance regulator may establish minimum 
     standards for private flood insurance in the State that take 
     into account price, scope of coverage, and any other factors 
     that the State insurance regulator determines are 
     appropriate.
       ``(B) Default standards.--The Administrator shall establish 
     minimum standards for private flood insurance that take into 
     account price, scope of coverage, and any other factors that 
     the Administrator determines are appropriate for States in 
     which the State insurance regulator does not establish 
     minimum standards under subparagraph (A).
       ``(3) Prioritization of private flood insurance.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, the Administrator may not provide flood insurance under 
     the national flood insurance program to a person for real 
     property or personal property unless the person demonstrates 
     that there is no private flood insurance available for the 
     property that meets--
       ``(i) the standards established under paragraph (2)(A) for 
     the State in which the property is located; or
       ``(ii) if standards have not been established under 
     paragraph (2)(A) for the State in which the property is 
     located, the standards established under paragraph (2)(B).
       ``(B) Demonstration of lack of private flood insurance.--
     The Administrator shall establish a procedure by which a 
     person seeking to purchase flood insurance under the national 
     flood insurance program for real property or personal 
     property may demonstrate that there is no private flood 
     insurance available for the property that meets the 
     applicable standards established under paragraph (2).''.
                                 ______
                                 
  SA 2477. Mr. MERKLEY (for himself and Ms. Landrieu) submitted an 
amendment intended to be proposed by him to the bill S. 1940, 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 of title I, add the following:

     SEC. 1__. LEVEE SYSTEMS; FLOOD CONTROL STRUCTURES.

       (a) Certification of Flood Control Structures by Corps of 
     Engineers.--Section 211 of the Water Resources Development 
     Act of 2000 (31 U.S.C. 6505 note) is amended by adding at the 
     end the following:
       ``(f) Certification or Evaluation of Levee Systems.--
     Notwithstanding subsections (b) and (c), the Corps may 
     provide specialized or technical services to a State or local 
     government under section 6505 of title 31, United States 
     Code, relating to the certification or evaluation of a levee 
     system for purposes of the National Flood Insurance Program 
     if--
       ``(1) the chief executive of the State or local government 
     submits to the Secretary a written request--
       ``(A) that describes the scope of the services to be 
     performed; and
       ``(B) in which the chief executive of the State or local 
     government agrees to reimburse the Corps for all costs 
     associated with the performance of the services; and
       ``(2) the Secretary ensures that the requirements under 
     paragraph (1) are met with regard to any request for services 
     submitted under paragraph (1) before the Secretary enters 
     into an agreement to perform the services.''.
       (b) Actual Protection Provided by Flood Control 
     Structures.--Section 1360 of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4101) is amended by adding at the end the 
     following:
       ``(k) Actual Protection Provided by Flood Control 
     Structures.--The Administrator may not issue a flood 
     insurance rate map or an update to a flood insurance rate map 
     for an area unless the flood insurance rate map or update 
     adequately reflects the protection provided by any levee, 
     dam, or other flood control structure in the area.''.
                                 ______
                                 
  SA 2478. Mr. MERKLEY (for himself and Mrs. Boxer) submitted an 
amendment intended to be proposed by him to the bill S. 1940, 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 15, strike line 20 and insert the following:
       ``(f) Exemption From Mandatory Purchase Requirement for 
     Pre-reform Homeowners.--The requirements under sections 102 
     and 202 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a and 4106) shall not apply with respect to a 
     residential property located in an area of residual risk 
     until the date on which ownership of the property changes for 
     the first time after the date on which such requirements 
     begin to apply to areas of residual risk, as determined under 
     section 107(c) of the Flood Insurance Reform and 
     Modernization Act of 2012.
       ``(g) Decertification.--Upon decertification of any
                                 ______
                                 
  SA 2479. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 1940, 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 appropriate place, insert the following:

     SEC. ___. LIFE AT CONCEPTION ACT.

       (a) Short Title.--This section may be cited as the ``Life 
     at Conception Act''.
       (b) Right to Life.--To implement equal protection for the 
     right to life of each born and preborn human person, and 
     pursuant to the duty and authority of the Congress, including 
     Congress' power under article I, section 8, to make necessary 
     and proper laws, and Congress' power under section 5 of the 
     14th article of amendment to the Constitution of the United 
     States, the Congress hereby declares that the right to life 
     guaranteed by the Constitution is vested in each human being.
       (c) Definitions.--For purposes of this section:
       (1) Human person; human being.--The terms ``human person'' 
     and ``human being'' include each and every member of the 
     species homo sapiens at all stages of life, including, but 
     not limited to, the moment of fertilization, cloning, and 
     other moment at which an individual member of the human 
     species comes into being.
       (2) State.--The term ``State'' used in the 14th article of 
     amendment to the Constitution of the United States and other 
     applicable provisions of the Constitution includes the 
     District of Columbia, the Commonwealth of Puerto Rico, and 
     each other territory or possession of the United States.

                          ____________________