[Congressional Record Volume 158, Number 120 (Monday, September 10, 2012)]
[House]
[Pages H5736-H5737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS

  Mrs. BIGGERT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6186) to require a study of voluntary community-based flood 
insurance options and how such options could be incorporated into the 
national flood insurance program, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6186

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD 
                   INSURANCE OPTIONS.

       (a) Study.--
       (1) Study required.--The Administrator of the Federal 
     Emergency Management Agency 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.
       (2) Considerations.--The study conducted under paragraph 
     (1) shall--
       (A) 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
       (B) evaluate the advisability of making available voluntary 
     community-based flood insurance policies to communities, 
     subdivisions of communities, and areas of residual risk.
       (3) Consultation.--In conducting the study required under 
     paragraph (1), the Administrator may consult with the 
     Comptroller General of the United States, as the 
     Administrator determines is appropriate.
       (b) Report by the Administrator.--
       (1) 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 subsection (a).
       (2) Contents.--The report submitted under paragraph (1) 
     shall include recommendations for--
       (A) the best manner to incorporate voluntary community-
     based flood insurance policies into the National Flood 
     Insurance Program; and
       (B) 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.
       (c) Report by Comptroller General.--Not later than 6 months 
     after the date on which the Administrator submits the report 
     required under subsection (b), the Comptroller General of the 
     United States shall--
       (1) review the report submitted by the Administrator; and
       (2) 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--
       (A) an analysis of the report submitted by the 
     Administrator;
       (B) any comments or recommendations of the Comptroller 
     General relating to the report submitted by the 
     Administrator; and
       (C) any other recommendations of the Comptroller General 
     relating to community-based flood insurance policies.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Illinois (Mrs. Biggert) and the gentlewoman from Wisconsin (Ms. Moore) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from Illinois.


                             General Leave

  Mrs. BIGGERT. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to add extraneous material on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Illinois?
  There was no objection.
  Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 6186, introduced by my 
friend and colleague on the Financial Services Committee, Congresswoman 
Gwen Moore.
  H.R. 6816 would require the Federal Emergency Management Agency, 
FEMA, the agency which administers the National Flood Insurance 
Program, NFIP, to conduct a study on the advantages and disadvantages 
of providing voluntary community-based flood insurance through NFIP and 
report its recommendations for implementation to Congress within 18 
months. H.R. 6186 also requires the Government Accountability Office, 
GAO, to analyze FEMA's report and submit its comments or 
recommendations on it to Congress within 6 months.
  Community-based flood insurance is an insurance technique where a 
risk assessment is made for all the buildings in a community, and then 
premiums to cover that risk are paid collectively by that community 
rather than the current practice of assessing each building 
individually and having each individual owner pay a premium. This 
innovative tool may represent a new and better way for some communities 
at risk of flooding to take the necessary steps to protect their 
citizens.
  In fact, FEMA has stated in congressional testimony that voluntary 
community-based flood insurance could help the NFIP better account for 
the full cost of flood risk, as well as provide incentives to encourage 
communities to implement greater flood mitigation measures. Thus, we 
think it's appropriate to commission this study of the community-based 
flood insurance concept so that FEMA can understand how it could be put 
to the greatest benefit.
  Congresswoman Moore's community-based flood insurance study provision 
was originally introduced as part of H.R. 1309, the Flood Insurance 
Reform Act of 2011, the bipartisan, long-term NFIP reauthorization 
measure that passed the House with over 400 votes

[[Page H5737]]

last summer. During the previous year, Congresswoman Moore's study 
language was also included as part of long-term NFIP reauthorization 
efforts that passed the House three additional times as part of other 
bills.
  Unfortunately, Congresswoman Moore's text, which is now H.R. 6186, 
was not included in the bipartisan Biggert-Waters Flood Insurance 
Reform Act that was signed into law on July 6. However, the Financial 
Services Committee remains committed to enacting this provision, and I 
want to commend Congresswoman Moore for all her hard work on this 
measure, and I am a cosponsor.
  With that, I would urge my colleagues to support H.R. 6186, and I 
reserve the balance of my time.
  Ms. MOORE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to start out by expressing my deepest 
appreciation to the manager of this bill, Representative Biggert, and 
also a cosponsor of this legislation, in addition to Representative 
Bachus and Representative Waters, a bipartisan initiative.

                              {time}  1640

  As Mrs. Biggert has indicated, this study was originally included in 
the flood insurance bill that passed the House but was later dropped 
for reasons of expediency. It was not controversial in negotiations 
with the Senate. I believe that a community-based flood insurance 
option may eventually provide a wonderful cost-saving option for 
communities within the framework of the overall National Flood 
Insurance Program.
  The potential for savings and community empowerment certainly merits 
a study. H.R. 6186 would require FEMA to study voluntary community-
based flood insurance options and examine how such options could be 
incorporated into the National Flood Insurance Program.
  The idea is to study group flood insurance policies for a National 
Flood Insurance Program-participating community or a FEMA-designated 
flood plain so that everyone in the community would pay the same rate. 
Now, this approach has merit because it means not only potentially 
lower rates due to increased participation, but there is also the 
option of providing lower-income households with access to vouchers to 
purchase flood insurance as part of the group.
  The group rating, of course, would spread the risk to an affordable 
extent for each individual homeowner. An analogy for this concept is 
group or employee health insurance coverage versus individual coverage. 
We all understand that group coverage is less expensive than individual 
coverage due to the economies of scale of streamlined underwriting. The 
difference is, in this case, a community, not an individual, would be 
the policy holder.
  Now, this brings me to a very important potential benefit of this 
approach: increased incentives for communities to take affirmative 
actions to mitigate the threat from floods in the community. Now, while 
an individual flood insurance holder has absolutely no incentive or 
means to, say, build stronger levees or dikes, a community policyholder 
would have the means and incentives to take those kinds of precautions. 
In theory, under this model, the homeowner would pay insurance like a 
utility bill on a monthly or quarterly basis.
  Finally, I want to point out that there is precedent for this idea. 
Under current regulations, FEMA could issue group flood insurance 
policies. The program was limited, but it was successful. This bill 
only adds that FEMA examine the cost and benefits of using this 
approach on an ongoing basis as an option for communities.
  I urge all my House colleagues to support this legislation, and I 
yield back the balance of my time.
  Mrs. BIGGERT. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Illinois (Mrs. Biggert) that the House suspend the 
rules and pass the bill, H.R. 6186.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mrs. BIGGERT. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

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