[Congressional Record Volume 163, Number 186 (Tuesday, November 14, 2017)]
[House]
[Pages H9209-H9238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
21ST CENTURY FLOOD REFORM ACT
Mr. HENSARLING. Mr. Speaker, pursuant to House Resolution 616, I call
up the bill (H.R. 2874) to achieve reforms to improve the financial
stability of the National Flood Insurance Program, to enhance the
development of more accurate estimates of flood risk through new
technology and better maps, to increase the role of private markets in
the management of flood insurance risks, and to provide for alternative
methods to insure against flood peril, and for other purposes, and ask
for its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 616, in lieu of
the amendment in the nature of a substitute recommended by the
Committee on Financial Services printed in the bill, the amendment
printed in part A of House Report 115-408, modified by the amendment
printed in part B of the report, is adopted and the bill, as amended,
is considered read.
The text of the bill, as amended, is as follows:
H.R. 2874
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled.
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``21st
Century Flood Reform Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION
Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Annual limitation on premium increases.
Sec. 103. Flood insurance affordability program.
Sec. 104. Disclosure of premium methodology.
Sec. 105. Consideration of coastal and inland locations in premium
rates.
Sec. 106. Monthly installment payment of premiums.
Sec. 107. Enhanced clear communication of flood risks.
Sec. 108. Availability of flood insurance information upon request.
Sec. 109. Disclosure of flood risk information upon transfer of
property.
Sec. 110. Voluntary community-based flood insurance pilot program.
Sec. 111. Use of replacement cost in determining premium rates.
Sec. 112. Cap on premiums.
Sec. 113. Premium rates for certain mitigated properties.
Sec. 114. Study of flood insurance coverage for units in cooperative
housing.
Sec. 115. Pilot program for properties with preexisting conditions.
Sec. 116. Federal Flood Insurance Advisory Committee.
Sec. 117. Interagency guidance on compliance.
Sec. 118. GAO study of claims adjustment practices.
Sec. 119. GAO study of flood insurance coverage treatment of earth
movement.
Sec. 120. Definitions.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT
Sec. 201. Private flood insurance.
[[Page H9210]]
Sec. 202. Opt-out of mandatory coverage requirement for commercial
properties.
Sec. 203. Elimination of non-compete requirement.
Sec. 204. Public availability of program information.
Sec. 205. Refund of premiums upon cancellation of policy because of
replacement with private flood insurance.
Sec. 206. GAO study of flood damage savings accounts.
Sec. 207. Demonstration program for flood damage savings accounts.
TITLE III--MAPPING FAIRNESS
Sec. 301. Use of other risk assessment tools in determining premium
rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard
areas.
Sec. 304. Communication and outreach regarding map changes.
Sec. 305. Sharing and use of maps and data.
Sec. 306. Community flood maps.
TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED
MITIGATION
Sec. 401. Provision of Community Rating System premium credits to
maximum number of communities practicable.
Sec. 402. Community accountability for repetitively flooded areas.
Sec. 403. Increased cost of compliance coverage.
TITLE V--PROGRAM INTEGRITY
Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability
surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive
lifetime claims.
Sec. 506. Prohibition of new coverage for structures with high-value
replacement costs.
Sec. 507. Pay for performance and streamlining costs and reimbursement.
Sec. 508. Enforcement of mandatory purchase requirements.
Sec. 509. Satisfaction of mandatory purchase requirement in States
allowing all-perils policies.
Sec. 510. Flood insurance purchase requirements.
Sec. 511. Clarifications; deadline for approval of claims.
Sec. 512. Risk transfer requirement.
Sec. 513. GAO study of simplification of National Flood Insurance
Program.
Sec. 514. GAO study on enforcement of mandatory purchase requirements.
TITLE VI--ADMINISTRATIVE REFORMS
Sec. 601. Penalties for fraud and false statements in the National
Flood Insurance Program.
Sec. 602. Enhanced policyholder appeals process rights.
Sec. 603. Deadline for approval of claims.
Sec. 604. Litigation process oversight and reform.
Sec. 605. Prohibition on hiring disbarred attorneys.
Sec. 606. Technical assistance reports.
Sec. 607. Improved disclosure requirement for standard flood insurance
policies.
Sec. 608. Reserve Fund amounts.
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 610. Limited exemption for disaster or catastrophe claims
adjusters.
TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION
SEC. 101. 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 ``September 30, 2017'' and inserting ``September 30,
2022''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2017'' and inserting ``September 30, 2022''.
SEC. 102. 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 paragraph (1), by striking ``18 percent'' and
inserting ``15 percent''; and
(2) in paragraph (2)--
(A) by striking ``5 percent'' and inserting ``6.5
percent''; and
(B) by inserting before the semicolon at the end the
following: ``, except that (A) during the 12-month period on
the date of the enactment of the 21st Century Flood Reform
Act this paragraph shall be applied by substituting `5
percent' for `6.5 percent', (B) during the 12-month period
beginning upon the expiration of the period referred to in
clause (A), this paragraph shall be applied by substituting
`5.5 percent' for `6.5 percent', and (C) during the 12-month
period beginning upon the expiration of the period referred
to in clause (B), this paragraph shall be applied by
substituting `6.0 percent' for `6.5 percent' ''.
SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by adding at the end the
following new section:
``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.
``(a) Authority.--The Administrator shall carry out a
program under this section to provide financial assistance,
through State programs carried out by participating States,
for eligible low-income households residing in eligible
properties to purchase policies for flood insurance coverage
made available under this title.
``(b) Participation.--Participation in the program under
this section shall be voluntary on the part of a State or
consortium of States.
``(c) State Administration.--Each participating State shall
delegate to a State agency or nonprofit organization the
responsibilities for administrating the State's program under
this section.
``(d) Eligible Households.--
``(1) In general.--During any fiscal year, assistance under
the program under this section may be provided only for a
household that has an income, as determined for such fiscal
year by the participating State in which such household
resides, that is less than the income limitation established
for such fiscal year for purposes of the State program by the
participating State, except that--
``(A) assistance under the program under this section may
not be provided for a household having a income that exceeds
the greater of--
``(i) the amount equal to 150 percent of the poverty level
for such State; or
``(ii) the amount equal to 60 percent of the median income
of households residing in such State; and
``(B) a State may not exclude a household from eligibility
in a fiscal year solely on the basis of household income if
such income is less than 110 percent of the poverty level for
the State in which such household resides.
``(2) State verification of income eligibility.--In
verifying income eligibility for purposes of paragraph (1),
the participating State may apply procedures and policies
consistent with procedures and policies used by the State
agency administering programs under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), under title XX
of the Social Security Act (42 U.S.C. 1397 et seq.), under
subtitle B of title VI of the Omnibus Budget Reconciliation
Act of 1981 (42 U.S.C. 9901 et seq.; relating to community
services block grant program), under any other provision of
law that carries out programs which were administered under
the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et seq.)
before August 13, 1981, or under other income assistance or
service programs (as determined by the State).
``(3) Certification by state of eligibility households.--
For each fiscal year, each participating State shall certify
to the Administrator compliance of households who are to be
provided assistance under the State program during such
fiscal year with the income requirements under paragraph (1).
``(e) Eligible Properties.--Assistance under the program
under this section may be provided only for a residential
property--
``(1) that has 4 or fewer residences;
``(2) that is owned and occupied by an eligible household;
``(3) for which a base flood elevation is identified on a
flood insurance rate map of the Administrator that is in
effect;
``(4) for which such other information is available as the
Administrator considers necessary to determine the flood risk
associated with such property; and
``(5) that is located in a community that is participating
in the national flood insurance program.
``(f) Types of Assistance.--Under the program under this
section, a participating State shall elect to provide
financial assistance for eligible households in one of the
following forms:
``(1) Limitation on rate increases.--By establishing a
limitation on the rate of increases in the amount of
chargeable premiums paid by eligible households for flood
insurance coverage made available under this title.
``(2) Limitation on rates.--By establishing a limitation on
the amount of chargeable premiums paid by eligible households
for flood insurance coverage made available under this title.
``(g) Notification to FEMA.--Under the program under this
section, a participating State shall, on a fiscal year basis
and at the time and in the manner provided by the
Administrator--
``(1) identify for the Administrator the eligible
households residing in the State who are to be provided
assistance under the State program during such fiscal year;
and
``(2) notify the Administrator of the type and levels of
assistance elected under subsection (f) to be provided under
the State program with respect to such eligible households
residing in the State.
``(h) Amount of Assistance.--Under the program under this
section, in each fiscal year the Administrator shall,
notwithstanding section 1308, make flood insurance coverage
available for purchase by households identified as eligible
households for such fiscal year by a participating State
pursuant to subsection (e) at chargeable premium rates that
are discounted by an amount that is based on the type and
levels of assistance elected pursuant to subsection
[[Page H9211]]
(f) by the participating State for such fiscal year.
``(i) Billing Statement.--In the case of an eligible
household for which assistance under the program under this
section is provided with respect to a policy for flood
insurance coverage, the annual billing statement for such
policy shall include statements of the following amounts:
``(1) The estimated risk premium rate for the property
under section 1307(a)(1).
``(2) If applicable, the estimated risk premium rate for
the property under section 1307(a)(2).
``(3) The chargeable risk premium rate for the property
taking into consideration the discount pursuant to subsection
(h).
``(4) The amount of the discount pursuant to subsection (h)
for the property.
``(5) The number and dollar value of claims filed for the
property, over the life of the property, under a flood
insurance policy made available under the Program and the
effect, under this Act, of filing any further claims under a
flood insurance policy with respect to that property.
``(j) Funding Through State Affordability Surcharges.--
``(1) Imposition and collection.--Notwithstanding section
1308, for each fiscal year in which flood insurance coverage
under this title is made available for properties in a
participating State at chargeable premium rates that are
discounted pursuant to subsection (f), the Administrator
shall impose and collect a State affordability surcharge on
each policy for flood insurance coverage for a property
located in such participating State that is (A) not a
residential property having 4 or fewer residences, or (B) is
such a residential property but is owned by a household that
is not an eligible household for purposes of such fiscal
year.
``(2) Amount.--The amount of the State affordability
surcharge imposed during a fiscal year on each such policy
for a property in a participating State shall be--
``(A) sufficient such that the aggregate amount of all such
State affordability surcharges imposed on properties in such
participating State during such fiscal year is equal to the
aggregate amount by which all policies for flood insurance
coverage under this title sold during such fiscal year for
properties owned by eligible households in the participating
State are discounted pursuant to subsection (f); and
``(B) the same amount for each property in the
participating State being charged such a surplus.
``(k) Treatment of Other Surcharges.--The provision of
assistance under the program under this section with respect
to any property and any limitation on premiums or premium
increases pursuant to subsection (f) for the property shall
not affect the applicability or amount of any surcharge under
section 1308A for the property, of any increase in premiums
charged for the property pursuant to section 1310A(c), or of
any equivalency fee under section 1308B for the property.
``(l) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Participating state.--The term `participating State'
means, with respect to a fiscal year, a State that is
participating in the program under this section for such
fiscal year.
``(2) Eligible household.--The term `eligible household'
means, with respect to a fiscal year and a participating
State, a household that has an income that is less than the
amount of the income limitation for the fiscal year
established for purposes of the State program of such
participating State pursuant to subsection (g)(1).
``(3) Poverty level.--The term `poverty level'' means, with
respect to a household in any State, the income poverty line
as prescribed and revised at least annually pursuant to
section 673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)), as applicable to such State.
``(4) State.--The term `State' shall include a consortium
of States established for purposes of administrating the
program under this section with respect to the member States
of the consortium.
``(5) State program.--The term `State program' means a
program carried out in compliance with this section by a
participating State in conjunction with the program under
this section of the Administrator.
``(m) Regulations.--The Administrator shall issue such
regulations as may be necessary to carry out the program
under this section.''.
SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY.
Section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015) is amended by adding at the end the
following new subsection:
``(n) Disclosure of Premium Methodology.--
``(1) Disclosure.--Six months prior to the effective date
of risk premium rates, the Administrator shall cause to be
published in the Federal Register an explanation of the bases
for, and methodology used to determine, the chargeable
premium rates to be effective for flood insurance coverage
under this title.
``(2) Alignment with industry practices.--The disclosure
required under paragraph (1) shall, to the extent
practicable, be aligned with industry patterns and practices
and shall include information and data recommended by the
State insurance commissioners guidelines on rate filings.
``(3) Public meetings.--The Administrator shall, on an
annual basis, hold at least one public meeting in each of the
geographical regions of the United States, as defined by the
Administrator for purposes of the National Flood Insurance
Program, for the purpose of explaining the methodology
described in paragraph (1) and answering questions and
receiving comments regarding such methodology. The
Administrator shall provide notice of each such public
meeting in advance, in such manner, and in using such means
as are reasonably designed to notify interested parties and
members of the public of the date and time, location, and
purpose of such meeting, and of how to submit questions or
comments.''.
SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN
PREMIUM RATES.
(a) Estimates of Premium Rates.--Subparagraph (A) of
section 1307(a)(1) of the National Flood Insurance Act of
1968 (42 U.S.C. 4014(a)(1)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end; and
(2) by adding at the end the following new clause:
``(iii) the differences in flood risk for properties
impacted by coastal flood risk and properties impacted by
riverine, or inland flood risk; and''.
(b) Establishment of Chargeable Premium Rates.--Paragraph
(1) of section 1308(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4015(b)(1)) is amended by inserting ``due to
differences in flood risk resulting from coastal flood
hazards and riverine, or inland flood hazards and'' after
``including differences in risks''.
(c) Revised Rates.--Not later than the expiration of the
two-year period beginning on the date of the enactment of
this Act, the Administrator of the Federal Emergency
Management Agency shall revise risk premium rates under the
National Flood Insurance Program to implement the amendments
made by this section.
SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.
(a) Authority.--Subsection (g) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is
amended--
(1) by striking the subsection designation and all that
follows through ``With respect'' and inserting the following:
``(g) Frequency of Premium Collection.--
``(1) Options.--With respect''; and
(2) by adding at the end the following:
``(2) Monthly installment payment of premiums.--
``(A) Exemption from rulemaking.--Until such time as the
Administrator promulgates regulations implementing paragraph
(1) of this subsection, the Administrator may adopt policies
and procedures, notwithstanding any other provisions of law
and in alignment and consistent with existing industry escrow
and servicing standards, necessary to implement such
paragraph without undergoing notice and comment rulemaking
and without conducting regulatory analyses otherwise required
by statute, regulation, or Executive order.
``(B) Pilot program.--The Administrator may initially
implement paragraph (1) of this subsection as a pilot program
that provides for a gradual phase-in of implementation.
``(C) Policyholder protection.--The Administrator may--
``(i) during the 12-month period beginning on the date of
the enactment of this subparagraph, charge policyholders
choosing to pay premiums in monthly installments a fee for
the total cost of the monthly collection of premiums not to
exceed $25 annually; and
``(ii) after the expiration of the 12-month period referred
to in clause (i), adjust the fee charged annually to cover
the total cost of the monthly collection of premiums as
determined by the report submitted pursuant to subparagraph
(D).
``(D) Report.--Not later than six months after the date of
the enactment of this Act, the Comptroller General shall
submit a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate, that sets forth all
of the costs associated with the monthly payment of premiums,
including any up-front costs associated with infrastructure
development, the impact on all policyholders including those
that exercise the option to pay monthly and those that do
not, options for minimizing the costs, particularly the costs
to policyholders, and the feasibility of adopting practices
that serve to minimize costs to policyholders such as
automatic payments and electronic payments.
``(E) Annual reports.--On an annual basis, the
Administrator shall report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate the ongoing
costs associated with the monthly payment of premiums.''.
(b) Implementation.--Clause (ii) of section 1307(a)(1)(B)
of the National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(B)(ii)) is amended by inserting before ``any
administrative expenses'' the following: ``the costs
associated with the monthly collection of premiums provided
for in section 1308(g) (42 U.S.C. 4015(g)), but only if such
costs exceed the operating costs and allowances set forth in
clause (i) of this subparagraph, and''.
SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.
(a) In General.--Subsection (l) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is
amended to read as follows:
[[Page H9212]]
``(l) Clear Communications.--
``(1) Newly issued and renewed policies.--For all policies
for flood insurance coverage under the National Flood
Insurance Program that are newly issued or renewed, the
Administrator shall clearly communicate to policyholders--
``(A) their full flood risk determinations, regardless of
whether their premium rates are full actuarial rates; and
``(B) the number and dollar value of claims filed for the
property, over the life of the property, under a flood
insurance policy made available under the Program and the
effect, under this Act, of filing any further claims under a
flood insurance policy with respect to that property.''.
(b) Effective Date.--Subsection (l) of section 1308 of the
National Flood Insurance Act of 1968, as added by subsection
(a) of this section, shall take effect beginning upon the
expiration of the 12-month period that begins on the date of
the enactment of this Act. Such subsection (l), as in effect
immediately before the amendment made by paragraph (1), shall
apply during such 12-month period.
SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON
REQUEST.
Section 1313 of the National Flood Insurance Act of 1968
(42 U.S.C. 4020) is amended--
(1) by inserting ``(a) Public Information and Data.--''
after ``Sec. 1313.''; and
(2) by adding at the end the following new subsection:
``(b) Availability of Flood Insurance Information Upon
Request.--Not later than 30 days after a request for such
information by the current owner of a property, the
Administrator shall provide to the owner any information,
including historical information, available to the
Administrator on flood insurance program coverage, payment of
claims, and flood damages for the property at issue, and any
information the Administrator has on whether the property
owner may be required to purchase coverage under the National
Flood Insurance Program due to previous receipt of Federal
disaster assistance, including assistance provided by the
Small Business Administration, the Department of Housing and
Urban Development, or the Federal Emergency Management
Agency, or any other type of assistance that subjects the
property to the mandatory purchase requirement under section
102 of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a).''.
SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER
OF PROPERTY.
(a) In General.--Chapter 1 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.), as amended by the
preceding provisions of this Act, is further amended by
adding at the end the following new section:
``SEC. 1327. DISCLOSURE OF FLOOD RISK INFORMATION UPON
TRANSFER OF PROPERTY.
``(a) Requirement for Participation in Program.--After
September 30, 2022, no new flood insurance coverage may be
provided under this title for any real property located in
any area (or subdivision thereof) unless an appropriate body
has imposed, by statute or regulation, a duty on any seller
or lessor of improved real estate located in such area to
provide to any purchaser or lessee of such property a
property flood hazard disclosure which the Administrator has
determined meets the requirements of subsection (b).
``(b) Disclosure Requirements.--A property flood hazard
disclosure for a property shall meet the requirements of this
subsection only if the disclosure--
``(1) is made in writing;
``(2) discloses any actual knowledge of the seller or
lessor of--
``(A) prior physical damage caused by flood to any building
located on the property;
``(B) prior insurance claims for losses covered under the
National Flood Insurance Program or private flood insurance
with respect to such property;
``(C) any previous notification regarding the designation
of the property as a multiple loss property; and
``(D) any Federal legal obligation to obtain and maintain
flood insurance running with the property, such as any
obligation due to a previous form of disaster assistance
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act received by any owner of the property; and
``(3) is delivered by or on behalf of the seller or lessor
to the purchaser or lessee before such purchaser or lessee
becomes obligated under any contract for purchase or lease of
the property.''.
(b) Availability of Flood Insurance Coverage.--Subsection
(c) of section 1305 of the National Flood Insurance Act of
1968 (42 U.S.C. 4012(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) given satisfactory assurance that by September 30,
2022, property flood hazard disclosure requirements will have
been adopted for the area that meet the requirements of
section 1326.''.
SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT
PROGRAM.
(a) Establishment.--The Administrator of the Federal
Emergency Management Agency (in this section referred to as
the ``Administrator'') may carry out a community-based flood
insurance pilot program to make available, for purchase by
participating communities, a single, community-wide flood
insurance policy under the National Flood Insurance Program
that--
(1) covers all residential and non-residential properties
within the community; and
(2) satisfies, for all such properties within the
community, the mandatory purchase requirements under section
102 of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a).
(b) Participation.--Participation by a community in the
pilot program under this section shall be entirely voluntary
on the part of the community.
(c) Requirements for Community-wide Policies.--The
Administrator shall ensure that a community-wide flood
insurance policy made available under the pilot program under
this section incorporates the following requirements:
(1) A mapping requirement for properties covered by the
policy.
(2) A cap on premiums.
(3) A deductible.
(4) Certification or accreditation of mitigation
infrastructure when available and appropriate.
(5) A community audit.
(6) The Community Rating System under section 1315(b) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)).
(7) A method of preventing redundant claims payments by the
National Flood Insurance Program in the case of a claim by an
individual property owner who is covered by a community-wide
flood insurance policy and an individual policy obtained
through the Program.
(8) Coverage for damage arising from flooding that complies
with the standards under the National Flood Insurance Program
appropriate to the nature and type of property covered.
(d) Timing.--The Administrator may establish the
demonstration program under this section not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act and the program shall terminate on
September 30, 2022.
(e) Definition of Community.--For purposes of this section,
the term ``community'' means any unit of local government,
within the meaning given such term under the laws of the
applicable State.
SEC. 111. USE OF REPLACEMENT COST IN DETERMINING PREMIUM
RATES.
(a) Study of Risk Rating Redesign Flood Insurance Premium
Rating Options.--
(1) Study.--The Administrator of the Federal Emergency
Management Agency shall conduct a study to--
(A) evaluate insurance industry best practices for risk
rating and classification, including practices related to
replacement cost value in premium rate estimations;
(B) assess options, methods, and strategies for including
replacement cost value in the Administrator's estimates under
section 1307(a)(1) of the National Flood Insurance Act of
1968 (42 U.S.C. 4014(a)(1));
(C) provide recommendations for including replacement cost
value in the estimate of the risk premium rates for flood
insurance under such section 1307(a)(1);
(D) identify an appropriate methodology to incorporate
replacement cost value into the Administrator's estimates
under such section 1307(a)(1);
(E) develop a feasible implementation plan and projected
timeline for including replacement cost value in the
estimates of risk premium rates for flood insurance made
available under the National Flood Insurance Program.
(2) Report.--
(A) Requirement.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act, the Administrator shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report that contains the results and conclusions of
the study required under paragraph (1).
(B) Contents.--The report submitted under subparagraph (A)
shall include--
(i) an analysis of the recommendations resulting from the
study under paragraph (1) and any potential impacts on the
National Flood Insurance Program, including cost
considerations;
(ii) a description of any actions taken by the
Administrator to implement the study recommendations; and
(iii) a description of any study recommendations that have
been deferred or not acted upon, together with a statement
explaining the reasons for such deferral or inaction.
(b) Use of Replacement Cost Value in Premium Rates;
Implementation.--
(1) Estimated rates.--Paragraph (1) of section 1307(a) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)) is amended, in the matter preceding subparagraph
(A), by inserting after ``flood insurance'' the following:
``, which shall incorporate replacement cost value, and''.
(2) Chargeable rates.--Subsection (b) of section 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b))
is amended, in the matter preceding paragraph (1), by
inserting after ``Such rates'' the following: ``shall
incorporate replacement cost value and''.
(3) Effective date.--The amendments under paragraphs (1)
and (2) of this subsection shall be made upon the expiration
of the 12-month period beginning on the date of the enactment
of this Act.
(4) Applicability and phase-in.--The Administrator of the
Federal Emergency Management Agency shall apply the
amendments
[[Page H9213]]
under paragraphs (1) and (2) to flood insurance coverage made
available under the National Flood Insurance Act of 1968 for
properties located in various geographic regions in the
United States such that--
(A) over the period beginning upon the expiration of the
period referred to in paragraph (3) of this subsection and
ending on December 31, 2020, the requirement under such
amendments shall be gradually phased in geographically
throughout the United States as sufficient information for
such implementation becomes available; and
(B) after the expiration of such period referred to in
subparagraph (A), such amendments shall apply to all flood
insurance coverage made available under the National Flood
Insurance Act of 1968.
SEC. 112. CAP ON PREMIUMS.
Paragraph (1) of section 1308(e) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
(1) by striking ``except --'' and inserting ``except as
provided in paragraph (4); and'';
(2) by striking subparagraphs (A) and (B);
(3) in subparagraph (C)--
(A) in clause (ii), by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively;
(B) by redesignating clauses (i) through (iii) as
subclauses (I) through (III), respectively; and
(C) by striking ``(C) in the case of a property that--''
and inserting the following:
``(B) The limitations under clauses (i) and (ii) of
subparagraph (A) shall not apply in the case of--
``(i) a property identified under section 1307(g); or
``(ii) a property that--'';
(4) by striking ``under this title for any property'' and
inserting the following: ``under this title--
``(i) for any property'';
(5) by inserting ``(A) subject to subparagraph (B),'' after
the paragraph designation; and
(6) by inserting before subparagraph (B), as so
redesignated by the amendment made by paragraph (3)(C) of
this section, the following new clause:
``(ii) for any residential property having 4 or fewer
residences and for which there is elevation data meeting
standards of the Administrator, may not exceed $10,000 in any
single year, except that such amount (as it may have been
previously adjusted) shall be adjusted for inflation by the
Administrator upon the expiration of the 5-year period
beginning upon the date of the enactment of the 21st Century
Flood Reform Act and upon the expiration of each successive
5-year period thereafter, in accordance with an inflationary
index selected by the Administrator.''.
SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.
(a) Mitigation Strategies.--Paragraph (1) of section
1361(d) of the National Flood Insurance Act of 1968 (42
U.S.C. 4102(d)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking ``and'' at the end;
and
(3) by inserting after subparagraph (B) the following new
subparagraphs:
``(C) with respect to buildings in dense urban
environments, methods that can be deployed on a block or
neighborhood scale; and
``(D) elevation of mechanical systems; and''.
(b) Mitigation Credit.--Subsection (k) of section 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4015(k))
is amended--
(1) by striking ``shall take into account'' and inserting
the following: ``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated by the amendment
made by paragraph (1) of this subsection, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(2) offer a reduction of the risk premium rate charged to
a policyholder, as determined by the Administrator, if the
policyholder implements any mitigation method described in
paragraph (1).''.
SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN
COOPERATIVE HOUSING.
The Administrator of the Federal Emergency Management
Agency shall conduct a study to analyze and determine the
feasibility of providing flood insurance coverage under the
National Flood Insurance Program under the National Flood
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) for individual
dwelling units in cooperative housing projects. Not later
than the expiration of the 24-month period beginning on the
date of the enactment of this Act, the Administrator shall
submit a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate regarding the
findings and conclusions of the study conducted pursuant to
this section, which shall include a plan setting forth
specific actions to implement the development of such flood
insurance coverage.
SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING
CONDITIONS.
Section 1311 of the National Flood Insurance Act of 1968
(42 U.S.C. 4018) is amended by adding at the end the
following new subsection:
``(c) Pilot Program for Investigation of Preexisting
Structural Conditions.--
``(1) Voluntary program.--The Administrator shall carry out
a pilot program under this subsection to provide for
companies participating in the Write Your Own program (as
such term is defined in section 1370(a) (42 U.S.C. 4121(a)))
to investigate preexisting structural conditions of insured
properties and potentially insured properties that could
result in the denial of a claim under a policy for flood
insurance coverage under this title in the event of a flood
loss to such property. Participation in the pilot program
shall be voluntary on the part of Write Your Own companies.
``(2) Investigation of properties.--Under the pilot program
under this subsection, a Write Your Own company participating
in the program shall--
``(A) provide in policies for flood insurance coverage
under this title covered by the program that, upon the
request of the policyholder, the company shall provide for--
``(i) an investigation of the property covered by such
policy, using common methods, to determine whether
preexisting structural conditions are present that could
result in the denial of a claim under such policy for flood
losses; and
``(ii) if such investigation is not determinative, an on-
site inspection of the property to determine whether such
preexisting structural conditions are present;
``(B) upon completion of an investigation or inspection
pursuant to subparagraph (A) that determines that such a
preexisting structural condition is present or absent, submit
a report to the policyholder and Administrator describing the
condition; and
``(C) impose a surcharge on each policy described in
subparagraph (A) in such amount that the Administrator
determines is appropriate to cover the costs of
investigations and inspections performed pursuant to such
policies and reimburse Write Your Own companies participating
in the program under this subsection for such costs.
``(3) Interim report.--Not later than December 31, 2021,
the Administrator shall submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate describing the operation of the pilot program to that
date.
``(4) Sunset.--The Administrator may not provide any policy
for flood insurance described in paragraph (2)(A) after
December 31, 2022.
``(5) Final report.--Not later than March 31, 2023, the
Administrator shall submit a final report regarding the pilot
program under this section to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate. The report
shall include any findings and recommendations of the
Administrator regarding the pilot program.''.
SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.
(a) Establishment.--There is established an advisory
committee to be known as the Federal Flood Insurance Advisory
Committee (in this section referred to as the ``Committee'').
(b) Membership.--
(1) Members.--The Committee shall consist of--
(A) the Administrator of the Federal Emergency Management
Agency (in this section referred to as the
``Administrator''), or the designee thereof;
(B) the Secretary of the Treasury, or the designee thereof;
and
(C) additional members appointed by the Administrator or
the designee of the Administrator, who shall be--
(i) two representatives of the property and casualty
insurance sector;
(ii) one individual who served in the past, or is currently
serving, as an insurance regulator of a State, the District
of Columbia, the Commonwealth of Puerto Rico, Guam, the
Commonwealth of the Northern Mariana Islands, the Virgin
Islands, American Samoa, or any federally-recognized Indian
tribe;
(iii) one representative of the financial or insurance
sectors who is involved in risk transfers, including
reinsurance, resilience bonds, and other insurance-linked
securities;
(iv) one actuary with demonstrated high-level knowledge of
catastrophic risk insurance;
(v) two insurance professionals with demonstrated
experience with the sale of flood insurance under the
National Flood Insurance Program;
(vi) two representatives of catastrophic risk insurance
programs;
(vii) one insurance claims specialist;
(viii) one representative of a recognized consumer advocacy
organization;
(ix) one individual having demonstrated expertise in the
challenges in insuring low-income communities;
(x) one representative from an academic institution who has
demonstrated expertise in insurance; and
(xi) such other recognized experts in the field of
insurance as the Administrator considers necessary.
(2) Qualifications.--In appointing members under paragraph
(1)(C), the Administrator shall, to the maximum extent
practicable, ensure the membership of the Committee has a
balance of members reflecting geographic diversity, including
representation from areas inland or with coastline identified
by the Administrator as at high risk for flooding or as areas
having special flood hazards.
[[Page H9214]]
(c) Duties.--The Committee shall review, and make
recommendations to the Administrator, upon request, on
matters related to the insurance aspects of the National
Flood Insurance Program, including ratemaking, technology to
administer insurance, risk assessment, actuarial practices,
claims practices, sales and insurance delivery, compensation
and allowances, generally and based on the complexities of
the program, and best insurance practices.
(d) Chairperson.--The members of the Committee shall elect
one member to serve as the chairperson of the Committee (in
this section referred to as the ``Chairperson'').
(e) Compensation.--Members of the Committee shall receive
no additional compensation by reason of their service on the
Committee.
(f) Meetings and Actions.--
(1) In general.--The Committee 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 in accordance with
the Committee's charter.
(2) Initial meeting.--The Administrator, or a person
designated by the Administrator, shall request and coordinate
the initial meeting of the Committee.
(g) 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 Committee in carrying out its duties.
(h) Powers.--In carrying out this section, the Committee
may hold hearings, receive evidence and assistance, provide
information, and conduct research, as it considers
appropriate.
(i) Reports to Congress.--The Administrator, on an annual
basis, shall report to the Committee on Financial Services of
the House of Representatives, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Office of
Management and Budget on--
(1) the recommendations made by the Committee;
(2) actions taken by the Federal Emergency Management
Agency to address such recommendations to improve the
insurance aspects of the national flood insurance program;
and
(3) any recommendations made by the Committee that have
been deferred or not acted upon, together with an explanatory
statement.
SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE.
The Federal entities for lending regulation (as such term
is defined in section 3(a) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4003(a))), in consultation with the
Administrator of the Federal Emergency Management Agency,
shall update and reissue the document entitled ``Interagency
Questions and Answers Regarding Flood Insurance'' not later
than the expiration of the 12-month period beginning on the
date of the enactment of this Act and not less frequently
than biennially thereafter.
SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.
The Comptroller General of the United States shall conduct
a study of the policies and practices for adjustment of
claims for losses under flood insurance coverage made
available under the National Flood Insurance Act, which shall
include--
(1) a comparison of such policies and practices with the
policies and practices for adjustment of claims for losses
under other insurance coverage;
(2) an assessment of the quality of the adjustments
conducted and the effects of such policies and practices on
such quality;
(3) identification of any incentives under such policies
and practices that affect the speed with which such
adjustments are conducted; and
(4) identification of the affects of such policies and
practices on insureds submitting such claims for losses.
SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF
EARTH MOVEMENT.
The Comptroller General of the United States shall conduct
a study of the treatment, under flood insurance coverage made
available under the National Flood Insurance Act, of earth
movement and subsidence, including earth movement and
subsidence caused by flooding, which shall include--
(1) identification and analysis of the effects of such
treatment on the National Flood Insurance Program and
insureds under the program;
(2) an assessment of the availability and affordability of
coverage in the private insurance market for earth movement
and subsidence caused by flooding;
(3) an assessment of the effects on the National Flood
Insurance Program of covering earth movement and subsidence
caused by flooding; and
(4) a projection of the increased premiums that would be
required to make coverage for earth movement losses
actuarially sound and not fiscally detrimental to the
continuation of the National Flood Insurance Program.
SEC. 120. DEFINITIONS.
(a) National Flood Insurance Act of 1968.--Subsection (a)
of section 1370 of the National Flood Insurance Act of 1968
(42 U.S.C. 4121(a)) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(16) the term `Write Your Own Program' means the program
under which the Federal Emergency Management Agency enters
into a standard arrangement with private property insurance
companies to sell contracts for flood insurance coverage
under this title under their own business lines of insurance,
and to adjust and pay claims arising under such contracts;
and
``(17) the term `Write Your Own company' means a private
property insurance company that participates in the Write
Your Own Program.''.
(b) Biggert-Waters Flood Insurance Reform Act of 2012.--
Subsection (a) of section 100202 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4004(a)) is amended
by striking paragraph (5) and inserting the following new
paragraph:
``(5) Write your own.--The terms `Write Your Own Program'
and `Write Your Own company' have the meanings given such
terms in section 1370(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4121(a)).''.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT
SEC. 201. PRIVATE FLOOD INSURANCE.
(a) Mandatory Purchase Requirement.--
(1) Amount and term of coverage.--Section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended
by striking ``Sec. 102. (a)'' and all that follows through
the end of subsection (a) and inserting the following:
``Sec. 102. (a) Amount and Term of Coverage.--After the
expiration of sixty days following the date of the enactment
of this Act, no Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes
for use in any area that has been identified by the
Administrator as an area having special flood hazards and in
which the sale of flood insurance has been made available
under the National Flood Insurance Act of 1968, unless the
building or mobile home and any personal property to which
such financial assistance relates is covered by flood
insurance: Provided, That the amount of flood insurance (1)
in the case of Federal flood insurance, is at least equal to
the development or project cost of the building, mobile home,
or personal property (less estimated land cost), the
outstanding principal balance of the loan, or the maximum
limit of Federal flood insurance coverage made available with
respect to the particular type of property, whichever is
less; or (2) in the case of private flood insurance, is at
least equal to the development or project cost of the
building, mobile home, or personal property (less estimated
land cost), the outstanding principal balance of the loan, or
the maximum limit of Federal flood insurance coverage made
available with respect to the particular type of property,
whichever is less: Provided further, That if the financial
assistance provided is in the form of a loan or an insurance
or guaranty of a loan, the amount of flood insurance required
need not exceed the outstanding principal balance of the loan
and need not be required beyond the term of the loan. The
requirement of maintaining flood insurance shall apply during
the life of the property, regardless of transfer of ownership
of such property.''.
(2) Requirement for mortgage loans.--Subsection (b) of
section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(b)) is amended--
(A) by striking paragraph (7);
(B) by redesignating paragraph (6) as paragraph (7);
(C) by striking the subsection designation and all that
follows through the end of paragraph (5) and inserting the
following:
``(b) Requirement for Mortgage Loans.--
``(1) Regulated lending institutions.--Each Federal entity
for lending regulation (after consultation and coordination
with the Financial Institutions Examination Council
established under the Federal Financial Institutions
Examination Council Act of 1974) shall by regulation direct
regulated lending institutions not to make, increase, extend,
or renew any loan secured by improved real estate or a mobile
home located or to be located in an area that has been
identified by the Administrator as an area having special
flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968,
unless the building or mobile home and any personal property
securing such loan is covered for the term of the loan by
flood insurance: Provided, That the amount of flood insurance
(A) in the case of Federal flood insurance, is at least equal
to the outstanding principal balance of the loan or the
maximum limit of Federal flood insurance coverage made
available with respect to the particular type of property,
whichever is less; or (B) in the case of private flood
insurance, is at least equal to the outstanding principal
balance of the loan or the maximum limit of Federal flood
insurance coverage made available with respect to the
particular type of property, whichever is less.
``(2) Federal agency lenders and mortgage insurance and
guarantee agencies.--
``(A) Federal agency lenders.--A Federal agency lender may
not make, increase, extend, or renew any loan secured by
improved real estate or a mobile home located or to be
located in an area that has been identified by the
Administrator as an area having special flood hazards and in
which flood insurance has been made available under the
National
[[Page H9215]]
Flood Insurance Act of 1968, unless the building or mobile
home and any personal property securing such loan is covered
for the term of the loan by flood insurance in accordance
with paragraph (1). Each Federal agency lender may issue any
regulations necessary to carry out this paragraph. Such
regulations shall be consistent with and substantially
identical to the regulations issued under paragraph (1).
``(B) Other federal mortgage entities.--
``(i) Coverage requirements.--Each covered Federal mortgage
entity shall implement procedures reasonably designed to
ensure that, for any loan that--
``(I) is secured by improved real estate or a mobile home
located in an area that has been identified, at the time of
the origination of the loan or at any time during the term of
the loan, by the Administrator as an area having special
flood hazards and in which flood insurance is available under
the National Flood Insurance Act of 1968, and
``(II) is made, insured, held, or guaranteed by such
entity, or backs or on which is based any trust certificate
or other security for which such entity guarantees the timely
payment of principal and interest,
the building or mobile home and any personal property
securing the loan is covered for the term of the loan by
flood insurance in the amount provided in paragraph (1).
``(ii) Definition.--For purposes of this subparagraph, the
term `covered Federal mortgage entity' means--
``(I) the Secretary of Housing and Urban Development, with
respect to mortgages insured under the National Housing Act;
``(II) the Secretary of Agriculture, with respect to loans
made, insured, or guaranteed under title V of the Housing Act
of 1949; and
``(III) the Government National Mortgage Association.
``(C) Requirement to accept flood insurance.--Each Federal
agency lender and each covered Federal mortgage entity shall
accept flood insurance as satisfaction of the flood insurance
coverage requirement under subparagraph (A) or (B),
respectively, if the flood insurance coverage meets the
requirements for coverage under such subparagraph and the
requirements relating to financial strength issued pursuant
to paragraph (4).
``(3) Government-sponsored enterprises for housing.--The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall implement procedures
reasonably designed to ensure that, for any loan that is--
``(A) secured by improved real estate or a mobile home
located in an area that has been identified, at the time of
the origination of the loan or at any time during the term of
the loan, by the Administrator as an area having special
flood hazards and in which flood insurance is available under
the National Flood Insurance Act of 1968, and
``(B) purchased or guaranteed by such entity,
the building or mobile home and any personal property
securing the loan is covered for the term of the loan by
flood insurance in the amount provided in paragraph (1). The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall accept flood insurance as
satisfaction of the flood insurance coverage requirement
under paragraph (1) if the flood insurance coverage provided
meets the requirements for coverage under that paragraph and
the requirements relating to financial strength issued
pursuant to paragraph (4).
``(4) Requirements regarding financial strength.--The
Director of the Federal Housing Finance Agency, in
consultation with the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, the Secretary of
Housing and Urban Development, the Government National
Mortgage Association, and the Secretary of Agriculture shall
develop and implement requirements relating to the financial
strength of private insurance companies from which such
entities and agencies will accept private flood insurance,
provided that such requirements shall not affect or conflict
with any State law, regulation, or procedure concerning the
regulation of the business of insurance.
``(5) Applicability.--
``(A) Existing coverage.--Except as provided in
subparagraph (B), paragraph (1) shall apply on the date of
enactment of the Riegle Community Development and Regulatory
Improvement Act of 1994.
``(B) New coverage.--Paragraphs (2) and (3) shall apply
only with respect to any loan made, increased, extended, or
renewed after the expiration of the 1-year period beginning
on the date of enactment of the Riegle Community Development
and Regulatory Improvement Act of 1994. Paragraph (1) shall
apply with respect to any loan made, increased, extended, or
renewed by any lender supervised by the Farm Credit
Administration only after the expiration of the period under
this subparagraph.
``(C) Continued effect of regulations.--Notwithstanding any
other provision of this subsection, the regulations to carry
out paragraph (1), as in effect immediately before the date
of enactment of the Riegle Community Development and
Regulatory Improvement Act of 1994, shall continue to apply
until the regulations issued to carry out paragraph (1) as
amended by section 522(a) of such Act take effect.
``(6) Rule of construction.--Except as otherwise specified,
any reference to flood insurance in this section shall be
considered to include Federal flood insurance and private
flood insurance. Nothing in this subsection shall be
construed to supersede or limit the authority of a Federal
entity for lending regulation, the Federal Housing Finance
Agency, a Federal agency lender, a covered Federal mortgage
entity (as such term is defined in paragraph (2)(B)(ii)), the
Federal National Mortgage Association, or the Federal Home
Loan Mortgage Corporation to establish requirements relating
to the financial strength of private insurance companies from
which the entity or agency will accept private flood
insurance, provided that such requirements shall not affect
or conflict with any State law, regulation, or procedure
concerning the regulation of the business of insurance.'';
and
(D) by adding at the end the following new paragraphs:
``(8) Definitions.--In this section:
``(A) Flood insurance.--The term `flood insurance' means--
``(i) Federal flood insurance; and
``(ii) private flood insurance.
``(B) Federal flood insurance.--The term `Federal flood
insurance' means an insurance policy made available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
``(C) Mutual aid society.--The term `mutual aid society'
means an organization--
``(i) the members of which--
``(I) share a common set of ethical or religious beliefs;
and
``(II) in accordance with the beliefs described in
subclause (I), agree to cover expenses arising from damage to
property of the members of the organization, including damage
caused by flooding; and
``(ii) that has a demonstrated history of fulfilling the
terms of agreements to cover expenses arising from damage to
property of the members of the organization caused by
flooding.
``(D) Private flood insurance.--The term `private flood
insurance' means--
``(i) an insurance policy that--
``(I) is issued by an insurance company that is--
``(aa) licensed, admitted, or otherwise approved to engage
in the business of insurance in the State in which the
insured building is located, by the insurance regulator of
that State; or
``(bb) eligible as a nonadmitted insurer to provide
insurance in the home State of the insured, in accordance
with sections 521 through 527 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (15 U.S.C. 8201 through
8206);
``(II) is issued by an insurance company that is not
otherwise disapproved as a surplus lines insurer by the
insurance regulator of the State in which the property to be
insured is located; and
``(III) provides flood insurance coverage that complies
with the laws and regulations of that State; or
``(ii) an agreement with a mutual aid society for such
society to cover expenses arising from damage to property of
the members of such society caused by flooding, unless the
State in which the property to be insured is located has--
``(I) determined that the specific mutual aid society may
not provide such coverage or provide such coverage in such
manner; or
``(II) specifically provided through law or regulation that
mutual aid societies may not provide such coverage or provide
such coverage in such manner.
``(E) State.--The term `State' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Northern Mariana Islands, the Virgin
Islands, and American Samoa.''.
(b) Effect of Private Flood Insurance Coverage on
Continuous Coverage Requirements.--Section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following:
``(o) Effect of Private Flood Insurance Coverage on
Continuous Coverage Requirements.--For purposes of applying
any statutory, regulatory, or administrative continuous
coverage requirement, including under section 1307(g)(1), the
Administrator shall consider any period during which a
property was continuously covered by private flood insurance
(as defined in section 102(b)(8) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(b)(8))) to be a
period of continuous coverage.''.
SEC. 202. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR
COMMERCIAL PROPERTIES.
(a) Amendments to Flood Disaster Protection Act of 1973.--
Effective on January 1, 2019, the Flood Disaster Protection
Act of 1973, as amended by the preceding provisions of this
Act, is further amended--
(1) in section 3(a) (42 U.S.C. 4003(a))--
(A) in paragraph (10), by striking ``and'' at the end;
(B) in paragraph (11), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(12) `residential improved real estate' means improved
real estate that--
``(A) is primarily used for residential purposes, as
defined by the Federal entities for lending regulation; and
``(B) secures financing or financial assistance provided
through a federally related single family loan program, as
defined by the Federal entities for lending regulation.'';
and
(2) in section 102 (42 U.S.C. 4012a)--
(A) in subsection (b)--
(i) in paragraph (1)--
[[Page H9216]]
(I) by inserting ``residential'' before ``improved real
estate''; and
(II) by inserting ``residential'' before ``building or
mobile home'';
(ii) in paragraph (2)--
(I) by inserting ``residential'' before ``improved real
estate'' each place such term appears; and
(II) by inserting ``residential'' before ``building or
mobile home'' each place such term appears; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by inserting ``residential''
before ``improved real estate''; and
(II) in the matter after and below subparagraph (B), by
inserting ``residential'' before ``building or mobile home'';
(B) in subsection (c)(3), by striking ``, in the case of
any residential property, for any structure that is a part of
such property'' and inserting ``for any structure that is a
part of a residential property'';
(C) in subsection (e)--
(i) in paragraph (1)--
(I) by inserting ``residential'' before ``improved real
estate''; and
(II) by inserting ``residential'' before ``building or
mobile home'' each place such term appears; and
(ii) in paragraph (5)--
(I) in subparagraph (A)--
(aa) by inserting ``residential'' before ``improved real
estate'' each place such term appears; and
(bb) by inserting ``residential'' before ``building or
mobile home'' each place such term appears;
(II) in subparagraph (B), by inserting ``residential''
before ``building or mobile home'' each place such term
appears; and
(III) in subparagraph (C), by inserting ``residential''
before ``building or mobile home''; and
(D) in subsection (h)--
(i) by inserting ``residential'' before ``improved real
estate'' each place such term appears; and
(ii) in the matter preceding paragraph (1), by inserting
``residential'' before ``building or mobile home''.
(b) Amendments to National Flood Insurance Act of 1968.--
Effective on January 1, 2019, the National Flood Insurance
Act of 1968, as amended by the preceding provisions of this
Act, is further amended--
(1) in section 1364(a) (42 U.S.C. 4104a(a))--
(A) in paragraph (1), by inserting ``residential'' before
``improved real estate'';
(B) in paragraph (2), by inserting ``residential'' before
``improved real estate''; and
(C) in paragraph (3)(A), by inserting ``residential''
before ``building'';
(2) in section 1365 (42 U.S.C. 4104b)--
(A) in subsection (a)--
(i) by inserting ``residential'' before ``improved real
estate''; and
(ii) by inserting ``residential'' before ``building'';
(B) in subsection (b)(2)--
(i) by inserting ``residential'' before ``building'' each
place such term appears; and
(ii) by inserting ``residential'' before ``improved real
estate'' each place such term appears;
(C) in subsection (d), by inserting ``residential'' before
``improved real estate'' each place such term appears; and
(D) in subsection (e)--
(i) by inserting ``residential'' before ``improved real
estate''; and
(ii) by inserting ``residential'' before ``building'' each
place such term appears; and
(3) in section 1370 (42 U.S.C. 4121)--
(A) in paragraph (8), by inserting ``residential'' before
``improved real estate'';
(B) by redesignating paragraphs (14) through (17) as
paragraphs (15) through (18), respectively; and
(C) by inserting after paragraph (13) the following new
paragraph:
``(14) the term `residential improved real estate' means
improved real estate that--
``(A) is primarily used for residential purposes, as
defined by the Federal entities for lending regulation; and
``(B) secures financing or financial assistance provided
through a federally related single family loan program, as
defined by the Federal entities for lending regulation;''.
(c) Rule of Construction.--This section and the amendments
made by this section may not be construed to prohibit the
Administrator of the Federal Emergency Management Agency from
offering flood insurance coverage under the National Flood
Insurance Program for eligible non-residential properties,
other residential multifamily properties, or structures
financed with commercial loans, or to prohibit the purchase
of such coverage for such eligible properties.
SEC. 203. ELIMINATION OF NON-COMPETE REQUIREMENT.
Section 1345 of the National Flood Insurance Act of 1968
(42 U.S.C. 4081) is amended by adding at the end the
following new subsection:
``(f) Authority To Provide Other Flood Coverage.--
``(1) In general.--The Administrator may not, as a
condition of participating in the Write Your Own Program (as
such term is defined in section 1370(a)) or in otherwise
participating in the utilization by the Administrator of the
facilities and services of insurance companies, insurers,
insurance agents and brokers, and insurance adjustment
organizations pursuant to the authority in this section, nor
as a condition of eligibility to engage in any other
activities under the National Flood Insurance Program under
this title, restrict any such company, insurer, agent,
broker, or organization from offering and selling private
flood insurance (as such term is defined in section 102(b)(9)
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(b)(9))).
``(2) Financial assistance/subsidy arrangement.--After the
date of the enactment of this subsection--
``(A) the Administrator may not include in any agreement
entered into with any insurer for participation in the Write
Your Own Program any provision establishing a condition
prohibited by paragraph (1), including the provisions of
Article XIII of the Federal Emergency Management Agency,
Federal Insurance Administration, Financial Assistance/
Subsidy Arrangement, as adopted pursuant to section 62.23(a)
of title 44 of the Code of Federal Regulations; and
``(B) any such provision in any such agreement entered into
before such date of enactment shall not have any force or
effect, and the Administrator may not take any action to
enforce such provision.''.
SEC. 204. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end
the following new section:
``SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.
``(a) Flood Risk Information.--
``(1) In general.--Except as provided in paragraph (2), to
facilitate the National Flood Insurance Program becoming a
source of information and data for research and development
of technology that better understands flooding, the risk of
flooding, and the predictability of perils of flooding, the
Administrator shall make publicly available all data, models,
assessments, analytical tools, and other information in the
possession of the Administrator relating to the National
Flood Insurance Program under this title that is used in
assessing flood risk or identifying and establishing flood
elevations and premiums, including--
``(A) data relating to risk on individual properties and
loss ratio information and other information identifying
losses under the program;
``(B) current and historical policy information, limited to
the amount and term only, for properties currently covered by
flood insurance and for properties that are no longer covered
by flood insurance;
``(C) current and historical claims information, limited to
the date and amount paid only, for properties currently
covered by flood insurance and for properties that are no
longer covered by flood insurance;
``(D) identification of whether a property was constructed
before or after the effective date of the first flood
insurance rate map for a community;
``(E) identification of properties that have been mitigated
through elevation, a buyout, or any other mitigation action;
and
``(F) identification of unmitigated multiple-loss
properties.
``(2) Open source data system.--In carrying out paragraph
(1), the Administrator shall establish an open source data
system by which all information required to be made publicly
available by such subsection may be accessed by the public on
an immediate basis by electronic means.
``(b) Community Information.--Not later than the expiration
of the 12-month period beginning upon the date of the
enactment of this section, the Administrator shall establish
and maintain a publicly searchable database that provides
information about each community participating in the
National Flood Insurance Program, which shall include the
following information:
``(1) The status of the community's compliance with the
National Flood Insurance Program, including any findings of
noncompliance, the status of any enforcement actions
initiated by a State or by the Administrator, and the number
of days of any such continuing noncompliance.
``(2) The number of properties located in the community's
special flood hazard areas that were built before the
effective date of the first flood insurance rate map for the
community.
``(3) The number of properties located in the community's
special flood hazard areas that were built after the
effective date of the first flood insurance rate map for the
community.
``(4) The total number of current and historical claims
located outside the community's special flood hazard areas.
``(5) The total number of multiple-loss properties in the
community.
``(6) The portion of the community, stated as a percentage
and in terms of square miles, that is located within special
flood hazard areas.
``(c) Identification of Properties.--The information
provided pursuant to subsections (a) and (b) shall be based
on data that identifies properties at the zip code or census
block level, and shall include the name of the community and
State in which a property is located.
``(d) Protection of Personally Identifiable Information.--
The information provided pursuant to subsections (a) and (b)
shall be disclosed in a format that does not reveal
individually identifiable information about property owners
in accordance with the section 552a of title 5, United States
Code.
[[Page H9217]]
``(e) Definition of Loss Ratio.--For purposes of this
section, the term `loss ratio' means, with respect to the
National Flood Insurance Program, the ratio of the amount of
claims paid under the Program to the amount of premiums paid
under the Program.''.
SEC. 205. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY
BECAUSE OF REPLACEMENT WITH PRIVATE FLOOD
INSURANCE.
Section 1306 of the National Flood Insurance Act of 1968
(42 U.S.C. 4013) is amended by adding at the end the
following new subsection:
``(e) Refund of Unearned Premiums for Policies Canceled
Because of Replacement With Private Flood Insurance.--
``(1) Required refund.--Subject to subsection (c), if at
any time an insured under a policy for flood insurance
coverage for a property that is made available under this
title cancels such policy because other duplicate flood
insurance coverage for the same property has been obtained
from a source other than the National Flood Insurance Program
under this title, the Administrator shall refund to the
former insured a portion of the premiums paid for the
coverage made available under this title, as determined
consistent with industry practice according to the portion of
the term of the policy that such coverage was in effect, but
only if a copy of declarations page of the new policy
obtained from a source other than the program under this
title is provided to the Administrator.
``(2) Effective date of cancellation.--For purposes of this
subsection, a cancellation of a policy for coverage made
available under the national flood insurance program under
this title, for the reason specified in paragraph (1), shall
be effective--
``(A) on the effective date of the new policy obtained from
a source other than the program under this title, if the
request for such cancellation was received by the
Administrator before the expiration of the 6-month period
beginning on the effective date of the new policy; or
``(B) on the date of the receipt by the Administrator of
the request for cancellation, if the request for such
cancellation was received by the Administrator after the
expiration of the 6-month period beginning on the effective
date of the new policy.
``(3) Prohibition of refunds for properties receiving
increased cost of compliance claims.--No premium amounts paid
for coverage made available under this title may be refunded
pursuant to this subsection--
``(A) with respect to coverage for any property for which
measures have been implemented using amounts received
pursuant to a claim under increased cost of compliance
coverage made available pursuant to section 1304(b); or
``(B) if a claim has been paid or is pending under the
policy term for which the refund is sought.''.
SEC. 206. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.
(a) In General.--The Comptroller General of the United
States shall conduct a study to analyze the feasibility and
effectiveness, and problems involved, in reducing flood
insurance premiums and eliminating the need for purchase of
flood insurance coverage by authorizing owners of residential
properties to establish flood damage savings accounts
described in subsection (b) in lieu of complying with the
mandatory requirements under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) to purchase
flood insurance for such properties.
(b) Flood Damage Savings Account.--A flood damage savings
account described in this subsection is a savings account--
(1) that would be established by an owner of residential
property with respect to such property in accordance with
requirements established by the Administrator of the Federal
Emergency Management Agency; and
(2) the proceeds of which would be available for use only
to cover losses to such properties resulting from flooding,
pursuant to adjustment of a claim for such losses in the same
manner and according to the same procedures as apply to
claims for losses under flood insurance coverage made
available under the National Flood Insurance Act of 1968.
(c) Issues.--Such study shall include an analysis of, and
recommendation regarding, each of the following issues:
(1) Whether authorizing the establishment of such flood
damage savings accounts would be effective and efficient in
reducing flood insurance premiums, eliminating the need for
purchase of flood insurance coverage made available under the
National Flood Insurance Program, and reducing risks to the
financial safety and soundness of the National Flood
Insurance Fund.
(2) Possible options for structuring such flood damage
savings accounts, including--
(A) what types of institutions could hold such accounts and
the benefits and problems with each such type of institution;
(B) considerations affecting the amounts required to be
held in such accounts; and
(C) options regarding considerations the conditions under
which such an account may be terminated.
(3) The feasibility and effectiveness, and problems
involved in, authorizing the Administrator of the Federal
Emergency Management Agency to make secondary flood insurance
coverage available under the National Flood Insurance Program
to cover the portion of flood losses or damages to properties
for which such flood damage savings accounts have been
established that exceed the amounts held in such accounts.
(4) The benefits and problems involved in authorizing the
establishment of such accounts for non-residential
properties.
(d) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act,
the Comptroller General shall submit a report to the
Committee on Financial Services of the House of
Representatives, the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Administrator that sets forth
the analysis, conclusions, and recommendations resulting from
the study under this section. Such report shall identify
elements that should be taken into consideration by the
Administrator in designing and carrying out the demonstration
program under section 207.
SEC. 207. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS
ACCOUNTS.
(a) Plan.--If the Comptroller General of the United States
concludes in the report required under section 206 that a
demonstration program under this section is feasible and
should be considered, then the Administrator of the Federal
Emergency Management Agency shall, not later than the
expiration of the 12-month period beginning upon the
submission of the report under section 206(d), submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a plan and guidelines for a
demonstration program, to be carried out by the
Administrator, to demonstrate the feasibility and
effectiveness of authorizing the establishment of flood
damage savings accounts, taking into consideration the
analysis, conclusions, and recommendations included in such
report.
(b) Authority.--The Administrator of the Federal Emergency
Management Agency shall carry out a program to demonstrate
the feasibility and effectiveness of authorizing the
establishment of flood damage savings accounts in the manner
provided in plan and guidelines for the demonstration program
submitted pursuant to subsection (a).
(c) Scope.--The demonstration program under this section
shall provide for the establishment of flood damage savings
accounts with respect to not more than 5 percent of the
residential properties that have 4 or fewer residences and
that are covered by flood insurance coverage made available
under the National Flood Insurance Program.
(d) Timing.--The Administrator shall commence the
demonstration program under this section not later than the
expiration of the 12-month period beginning upon the
submission of the plan and guidelines for the demonstration
pursuant to subsection (a).
(e) Geographical Diversity.--The Administrator shall ensure
that properties for which flood damage savings accounts are
established under the demonstration are located in diverse
geographical areas throughout the United States.
(f) Report.--Upon the expiration of the 2-year period
beginning upon the date of the commencement of the
demonstration program under this section, the Administrator
shall submit a report to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate describing and
assessing the demonstration, and setting forth conclusions
and recommendations regarding continuing and expanding the
demonstration.
(g) Feasibility.--The Administrator shall implement this
section only after determining that implementation is
supported by the Comptroller's conclusions and
recommendations contained in the report required under
section 206.
TITLE III--MAPPING FAIRNESS
SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING
PREMIUM RATES.
(a) Estimates of Premium Rates.--Subparagraph (A) of
section 1307(a)(1) of the National Flood Insurance Act of
1968 (42 U.S.C. 4014(a)(1)(A)), as amended by the preceding
provisions of this Act, is further amended--
(1) in clause (ii), by striking ``and'' at the end; and
(2) by adding at the end the following new clause:
``(iv) both the risk identified by the applicable flood
insurance rate maps and by other risk assessment data and
tools, including risk assessment models and scores from
appropriate sources; and''.
(b) Establishment of Chargeable Premium Rates.--Paragraph
(1) of section 1308(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4015(b)(1)) is amended by inserting before
the semicolon at the end the following: ``, taking into
account both the risk identified by the applicable flood
insurance rate maps and by other risk assessment data and
tools, including risk assessment models and scores from
appropriate sources''.
(c) Effective Date and Regulations.--
(1) Effective date.--The amendments made by subsections (a)
and (b) shall be made, and shall take effect, upon the
expiration of the 36-month period beginning on the date of
the enactment of this Act.
(2) Regulations.--The Administrator of the Federal
Emergency Management Agency shall issue regulations necessary
to implement the amendments made by subsections (a) and (b),
which shall identify risk assessment data and tools to be
used in identifying flood risk and appropriate sources for
risk assessment models and scores to be so used.
[[Page H9218]]
Such regulations shall be issued not later than the
expiration of the 36-month period beginning on the date of
the enactment of this Act and shall take effect upon the
expiration of such period.
SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.
(a) In General.--Section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding
at the end the following new subsection:
``(k) Appeals of Existing Maps.--
``(1) Right to appeal.--Subject to paragraph (6), a State
or local government, or the owner or lessee of real property,
who has made a formal request to the Administrator to update
a flood map that the Administrator has denied may at any time
appeal such a denial as provided in this subsection.
``(2) Basis for appeal.--The basis for appeal under this
subsection shall be the possession of knowledge or
information that--
``(A) the base flood elevation level or designation of any
aspect of a flood map is scientifically or technically
inaccurate; or
``(B) factors exist that mitigate the risk of flooding,
including ditches, banks, walls, vegetation, levees, lakes,
dams, reservoirs, basin, retention ponds, and other natural
or manmade topographical features.
``(3) Appeals process.--
``(A) Administrative adjudication.--An appeal under this
subsection shall be determined by a final adjudication on the
record, and after opportunity for an administrative hearing.
``(B) Rights upon adverse decision.--If an appeal pursuant
to subparagraph (A) does not result in a decision in favor of
the State, local government, owner, or lessee, such party may
appeal the adverse decision to the Scientific Resolution
Panel provided for in section 1363A, which shall recommend a
non-binding decision to the Administrator.
``(4) Relief.--
``(A) Wholly successful appeals.--In the case of a
successful appeal resulting in a policyholder's property
being removed from a special flood hazard area, such
policyholder may cancel the policy at any time within the
current policy year, and the Administrator shall provide such
policyholder a refund in the amount of any premiums paid for
such policy year, plus any premiums paid for flood insurance
coverage that the policyholder was required to purchase or
maintain during the 2-year period preceding such policy year.
``(B) Partially successful appeals.--In the case of any
appeal in which mitigating factors were determined to have
reduced, but not eliminated, the risk of flooding, the
Administrator shall reduce the amount of flood insurance
coverage required to be maintained for the property concerned
by the ratio of the successful portion of the appeal as
compared to the entire appeal. The Administrator shall refund
to the policyholder any payments made in excess of the amount
necessary for such new coverage amount, effective from the
time when the mitigating factor was created or the beginning
of the second policy year preceding the determination of the
appeal, whichever occurred later.
``(C) Additional relief.--The Administrator may provide
additional refunds in excess of the amounts specified in
subparagraphs (A) and (B) if the Administrator determines
that such additional amounts are warranted.
``(5) Recovery of costs.--When, incident to any appeal
which is successful in whole or part regarding the
designation of the base flood elevation or any aspect of the
flood map, including elevation or designation of a special
flood hazard area, the community, or the owner or lessee of
real property, as the case may be, incurs expense in
connection with the appeal, including services provided by
surveyors, engineers, and scientific experts, the
Administrator shall reimburse such individual or community
for reasonable expenses to an extent measured by the ratio of
the successful portion of the appeal as compared to the
entire appeal, but not including legal services, in the
effecting of an appeal based on a scientific or technical
error on the part of the Federal Emergency Management Agency.
No reimbursement shall be made by the Administrator in
respect to any fee or expense payment, the payment of which
was agreed to be contingent upon the result of the appeal.
The Administrator may use such amounts from the National
Flood Insurance Fund established under section 1310 as may be
necessary to carry out this paragraph.
``(6) Inapplicability to community flood maps.--This
subsection shall not apply with respect to any flood map that
is in effect pursuant to certification under the standards,
guidelines, and procedures established pursuant to section
100215(m)(1)(B) of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4101a(m)(1)(B)).
``(7) Guidance.--The Administrator shall issue guidance to
implement this subsection, which shall not be subject to the
notice and comment requirements under section 553 of title 5,
United States Code.''.
(b) Deadline.--The Administrator of the Federal Emergency
Management Agency shall issue the guidance referred to
section 1360(k)(7) of the National Flood Insurance Act of
1968 (42 U.S.C. 4101(k)(7)), as added by the amendment made
by subsection (a) of this section, not later than the
expiration of the 6-month period beginning on the date of the
enactment of this Act.
SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD
HAZARD AREAS.
(a) Appeals.--Section 1363 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104) is amended--
(1) in subsection (b), by striking the second sentence and
inserting the following: ``Any owner or lessee of real
property within the community who believes the owner's or
lessee's rights to be adversely affected by the
Administrator's proposed determination may appeal such
determination to the local government no later than 90 days
after the date of the second publication.'';
(2) in subsection (d), by striking ``subsection (e)'' and
inserting ``subsection (f)'';
(3) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (d) the following new
subsection:
``(e) Determination by Administrator in the Absence of
Appeals.--If the Administrator has not received any appeals,
upon expiration of the 90-day appeal period established under
subsection (b) of this section the Administrator's proposed
determination shall become final. The community shall be
given a reasonable time after the Administrator's final
determination in which to adopt local land use and control
measures consistent with the Administrator's
determination.''.
(b) Publication.--Subsection (a) of section 1363 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is
amended by striking ``in the Federal Register''.
(c) Inapplicability to Private and Community Flood Maps.--
Section 1363 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104), as amended by the preceding provisions of this
section, is further amended by adding at the end the
following new subsection:
``(i) Inapplicability to Community Flood Maps.--This
section shall not apply with respect to any flood map that is
in effect pursuant to certification under the standards,
guidelines, and procedures established pursuant to section
100215(m)(1) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101a(m)(1)), which shall include
procedures for providing notification and appeal rights to
individuals within the communities of the proposed flood
elevation determinations.''.
SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.
Paragraph (1) of section 100216(d) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is
amended--
(1) in subparagraph (B), by inserting ``maximum'' before
``30-day period''; and
(2) in subparagraph (C), by inserting ``maximum'' before
``30-day period''.
SEC. 305. SHARING AND USE OF MAPS AND DATA.
Subsection (b) of section 100216 of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) in subparagraph (C), by striking the period at the end
and inserting ``; and'' ; and
(C) by adding at the end the following new subparagraph:
``(D) consult and coordinate with the Department of
Defense, the United States Geological Survey, and the
National Oceanic and Atmospheric Administration for the
purpose of obtaining the most-up-to-date maps and other
information of such agencies, including information on
topography, water flow, and any other issues, relevant to
mapping for flood insurance purposes.''; and
(2) in paragraph (3)--
(A) in subparagraph (D), by striking ``and'' at the end;
(B) by redesignating subparagraph (E) as subparagraph (F);
and
(C) by inserting after subparagraph (D) the following new
subparagraph:
``(E) any other information relevant to mapping for flood
insurance purposes obtained pursuant to paragraph (1)(D);
and''.
SEC. 306. COMMUNITY FLOOD MAPS.
(a) Technical Mapping Advisory Council.--Section 100215 of
the Biggert-Waters Flood Insurance Reform Act of 2012 (42
U.S.C. 4101a) is amended--
(1) in subsection (c)--
(A) in paragraph (5)(B), by striking ``and'' at the end;
(B) by redesignating paragraph (6) as paragraph (9); and
(C) by inserting after paragraph (5) the following new
paragraphs:
``(6) recommend to the Administrator methods or actions to
make the flood mapping processes more efficient;
``(7) recommend to the Administrator methods or actions to
minimize any cost, data, and paperwork requirements of the
flood mapping processes;
``(8) assist communities, and in particular smaller
communities, in locating the resources required to
participate in the development of flood elevations and flood
hazard area designations; and''; and
(2) by adding at the end the following new subsection:
``(m) Community Flood Maps.--
``(1) Standards and procedures.--In addition to the other
duties of the Council under this section, not later than the
expiration of the 12-month period beginning on the date of
the enactment of this subsection, the Council shall recommend
to the Administrator standards and requirements for chief
executive officers, or entities designated by chief executive
officers, of States and communities participating in the
National Flood Insurance Program to use in mapping flood
hazards located in States and communities that choose to
develop alternative maps to
[[Page H9219]]
the flood insurance rate maps developed by the Agency. The
recommended standards and requirements shall include
procedures for providing notification and appeal rights to
individuals within the communities of the proposed flood
elevation determinations.
``(2) Exemption from rulemaking.--Until such time as the
Administrator promulgates regulations implementing paragraph
(1) of this subsection, the Administrator may,
notwithstanding any other provision of law, adopt policies
and procedures necessary to implement such paragraphs without
undergoing notice and comment rulemaking and without
conducting regulatory analyses otherwise required by statute,
regulation, or executive order.''.
(b) FEMA Identification of Flood-prone Areas.--Subsection
(a) of section 1360 of the National Flood Insurance Act of
1968 (42 U.S.C. 4101(a)) is amended--
(1) in paragraph (2), by striking the period at the end and
inserting ``; and'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A), and (B), respectively, and realigning such
subparagraphs so as to be indented 4 ems from the left
margin;
(3) by striking ``is authorized to consult'' and inserting
the following: ``is authorized--
``(1) to consult'';
(4) by adding at the end the following new paragraph:
``(2) to receive proposed alternative maps from communities
developed pursuant to standards and requirements recommended
by the Technical Mapping Advisory Council, as required by
section 100215(m) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4101a(m)) and adopted by the
Administrator as required by section 100216(c)(3) of such Act
(42 U.S.C. 4101b(c)(3)), so that the Administrator may--
``(A) publish information with respect to all flood plain
areas, including coastal areas located in the United States,
which have special flood hazards, and
``(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 of these areas until the date specified in section
1319.''.
(c) National Flood Mapping Program.--Section 100216 of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4101b) is amended--
(1) in subsection (a), by inserting ``prepared by the
Administrator, or by a community pursuant to section
1360(a)(2) of the National Flood Insurance Act of 1968,''
after ``Program rate maps''; and
(2) in subsection (c)--
(A) in paragraph (1)(B), by striking ``and'' at the end;
(B) in paragraph (2)(C), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new paragraphs:
``(3) establish and adopt standards and requirements for
development by States and communities of alternative flood
insurance rate maps to be submitted to the Administrator
pursuant to section 1360(a)(2) of the National Flood
Insurance Act of 1968, taking into consideration the
recommendations of the Technical Mapping Advisory Council
made pursuant to section 100215(m) of this Act (42 U.S.C.
4101a(m)); and
``(4) in the case of proposed alternative maps received by
the Administrator pursuant to such section 1360(a)(2), not
later than the expiration of the 6-month period beginning
upon receipt of such proposed alternative maps--
``(A) determine whether such maps were developed in
accordance with the standards and requirements adopted
pursuant to paragraph (3) of this subsection; and
``(B) approve or disapprove such proposed maps for use
under National Flood Insurance Program.''.
TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED
MITIGATION
SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM
CREDITS TO MAXIMUM NUMBER OF COMMUNITIES
PRACTICABLE.
Subsection (b) of section 1315 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended--
(1) in paragraph (2), by striking ``may'' and inserting
``shall''; and
(2) in paragraph (3), by inserting ``, and the
Administrator shall provide credits to the maximum number of
communities practicable'' after ``under this program''.
SEC. 402. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED
AREAS.
(a) In General.--Section 1361 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding
at the end the following new subsection:
``(e) Community Accountability for Repetitively Damaged
Areas.--
``(1) In general.--The Administrator shall, by regulation,
require any covered community (as such term is defined in
paragraph (5))--
``(A) to identify the areas within the community where
properties described in paragraph (5)(B) or flood-damaged
facilities are located to determine areas repeatedly damaged
by floods and to assess, with assistance from the
Administrator, the continuing risks to such areas;
``(B) to develop a community-specific plan for mitigating
continuing flood risks to such repetitively flooded areas and
to submit such plan and plan updates to the Administrator at
appropriate intervals;
``(C) to implement such plans;
``(D) to make such plan, plan updates, and reports on
progress in reducing flood risk available to the public,
subject to section 552a of title 5, United States Code.
``(2) Incorporation into existing plans.--Plans developed
pursuant to paragraph (1) may be incorporated into mitigation
plans developed under section 1366 of this Act (42 U.S.C.
4104c) and hazard mitigation plans developed under section
322 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5165).
``(3) Assistance to communities.--
``(A) Data.--To assist communities in preparation of plans
required under paragraph (1), the Administrator shall, upon
request, provide covered communities with appropriate data
regarding the property addresses and dates of claims
associated with insured properties within the community.
``(B) Mitigation grants.--In making determinations
regarding financial assistance under the authorities of this
Act, the Administrator may consider the extent to which a
community has complied with this subsection and is working to
remedy problems with addressing repeatedly flooded areas.
``(4) Sanctions.--
``(A) In general.--The Administrator shall, by regulations
issued in accordance with the procedures established under
section 553 of title 5, United States Code, regarding
substantive rules, provide appropriate sanctions for covered
communities that fail to comply with the requirements under
this subsection or to make sufficient progress in reducing
the flood risks to areas in the community that are repeatedly
damaged by floods.
``(B) Notice.--Before imposing any sanction pursuant to
this paragraph, the Administrator shall provide the covered
community involved with notice of the non-compliance that
could result in the imposition of sanctions, which shall
include recommendations for actions to bring the covered
community into compliance.
``(C) Considerations.--In determining appropriate sanctions
to impose under this paragraph, the Administrator shall
consider the resources available to the covered community
involved, including Federal funding, the portion of the
covered community that lies within an area having special
flood hazards, and other factors that make it difficult for
the covered community to conduct mitigation activities for
existing flood-prone structures.
``(5) Covered community.--For purposes of this subsection,
the term `covered community' means a community--
``(A) that is participating, pursuant to section 1315, in
the national flood insurance program; and
``(B) within which are located--
``(i) 50 or more repetitive loss structures for each of
which, during any 10-year period, two or more claims for
payments under flood insurance coverage have been made with a
cumulative amount exceeding $1,000;
``(ii) 5 or more severe repetitive loss structures (as such
term is defined in section 1366(h)) for which mitigation
activities meeting the standards for approval under section
1366(c)(2)(A) have not been conducted; or
``(iii) a public facility or a private nonprofit facility
(as such terms are as defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122)), that has received assistance for repair,
restoration, reconstruction, or replacement under section 406
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5172) in connection with more than
one flooding event in the most recent 10-year period.
``(6) Repetitive-loss structure.--For purposes of this
subsection, the term `repetitive loss structure' has the
meaning given such term in section 1370 (42 U.S.C. 4121).
``(7) Reports to congress.--Not later than the expiration
of the 6-year period beginning upon the date of the enactment
of this subsection, and not less than every 2 years
thereafter, the Administrator shall submit a report to the
Congress regarding the progress in implementing plans
developed pursuant to paragraph (1)(B).''.
(b) Regulations.--The Administrator of the Federal
Emergency Management Agency shall issue regulations necessary
to carry out subsection (e) of section 1361 of the National
Flood Insurance Act of 1968, as added by the amendment made
by subsection (a) of this section, not later than the
expiration of the 12-month period that begins on the date of
the enactment of this Act.
SEC. 403. INCREASED COST OF COMPLIANCE COVERAGE.
(a) Coverage of Properties at High Risk of Future Flood
Damage.--Subsection (b) of section 1304 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
(1) in paragraph (4), by redesignating subparagraphs (A)
through (D) as clauses (i) through (iv), respectively, and
realigning such clauses, as so redesignated, so as to be
indented 6 ems from the left margin;
(2) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and realigning
such subparagraphs, as so redesignated, so as to be indented
4 ems from the left margin;
(3) by striking the subsection designation and all that
follows through ``The national'' and inserting the following:
``(b) Additional Coverage for Compliance With Land Use and
Control Measures.--
[[Page H9220]]
``(1) Authority; eligible properties.--The national'';
(4) in subparagraph (C) (as so redesignated by paragraph
(2) of this subsection), by striking ``Fund'' and all that
follows and inserting ``Fund to require the implementation of
such measures;'';
(5) in subparagraph (D)(iv) (as so redesignated by
paragraphs (1) and (2) of this subsection), by striking the
period at the end and inserting a semicolon; and
(6) by adding at the end the following new subparagraphs:
``(E) properties that have been identified by the
Administrator, or by a community in accordance with such
requirements as the Administrator shall establish, as at a
high risk of future flood damage; and
``(F) properties that are located within an area identified
pursuant to section 1361(e)(1)(A) (42 U.S.C. 4102(e)(1)(A))
by a covered community (as such term is defined in paragraph
(3) of such section 1361(e)).''.
(b) Coverage Amount.--Section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
(1) in paragraph (1) (as so designated by subsection (a)(3)
of this section), by striking the last sentence (relating to
a surcharge); and
(2) by adding at the end the following new paragraph:
``(2) Coverage amount.--
``(A) Primary coverage.--Each policy for flood insurance
coverage made available under this title shall provide
coverage under this subsection having an aggregate liability
for any single property of $30,000.
``(B) Enhanced coverage.--The Administrator shall make
additional coverage available under this subsection, in
excess of the limit specified in subparagraph (A), having an
aggregate liability for any single property of up to
$60,000.''.
(c) Amount of Surcharge.--Subsection (b) of section 1304 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)),
as amended by the preceding provisions of this section, is
further amended by adding at the end the following new
paragraph:
``(3) Surcharge for coverage.--
``(A) Primary coverage.--The Administrator shall impose a
surcharge on each insured of such amount per policy as the
Administrator determines is appropriate to provide cost of
compliance coverage in accordance with paragraph (2)(A).
``(B) Enhanced coverage.--For each flood policy for flood
insurance coverage under this title under which additional
cost of compliance coverage is provided pursuant to paragraph
(2)(B), the Administrator shall impose a surcharge, in
addition to the surcharge under subparagraph (A) of this
paragraph, in such amount as the Administrator determines is
appropriate for the amount of such coverage provided.''.
(d) Use of Certain Materials.--Subsection (b) of section
1304 of the National Flood Insurance Act of 1968 (42 U.S.C.
4011(b)), as amended by the preceding provisions of this
section, is further amended by adding at the end the
following new paragraph:
``(4) Use of certain materials.--The Administrator shall
require that any measures implemented using amounts made
available from coverage provided pursuant to this subsection
be carried out using materials, identified by the
Administrator, that minimize the impact of flooding on the
usability of the covered property and reduce the duration
that flooding renders the property unusable or
uninhabitable.''.
(e) Continued Flood Insurance Requirement.--Subsection (b)
of section 1304 of the National Flood Insurance Act of 1968
(42 U.S.C. 4011(b)), as amended by the preceding provisions
of this section, is further amended by adding at the end the
following new paragraph:
``(5) Continued flood insurance requirement.--The
Administrator may require, as a condition of providing cost
of compliance coverage under this subsection for a property,
that the owner of the property enter into such binding
agreements as the Administrator considers necessary to ensure
that the owner of the property (and any subsequent owners)
will maintain flood insurance coverage under this title for
the property in such amount, and at all times during a period
having such duration, as the Administrator considers
appropriate to carry out the purposes of this subsection.''.
TITLE V--PROGRAM INTEGRITY
SEC. 501. INDEPENDENT ACTUARIAL REVIEW.
Section 1309 of the National Flood Insurance Act of 1968
(42 U.S.C. 4016) is amended by adding at the end the
following new subsection:
``(e) Independent Actuarial Review.--
``(1) Fiduciary responsibility.--The Administrator has a
responsibility to ensure that the National Flood Insurance
Program remains financially sound. Pursuant to this
responsibility, the Administrator shall from time to time
review and eliminate nonessential costs and positions within
the Program, unless otherwise authorized or required by law,
as the Administrator determines to be necessary.
``(2) Annual independent actuarial study.--The
Administrator shall provide for an independent actuarial
study of the National Flood Insurance Program to be conducted
annually, which shall analyze the financial position of the
program based on the long-term estimated losses of the
program. The Administrator shall submit a report (together
with the independent actuarial study) annually to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate describing the results of such
study, including a determination of whether the Program has
collected revenue sufficient to cover the administrative
expenses of carrying out the flood insurance program, which
are reflected in the risk premium rates, cost of capital, all
other costs associated with the transfer of risks, and
expected claims payments during the reporting period, and an
overall assessment of the financial status of the Program.
``(3) Determination of actuarial budget deficit.--
``(A) Requirement.--Within the report submitted under
paragraph (2), the Administrator shall issue a determination
of whether there exists an actuarial budget deficit for the
Program for the year covered in the report. The report shall
recommend any changes to the Program, if necessary, to ensure
that the program remains financially sound.
``(B) Basis of determination.--The determination required
by subparagraph (A) shall be based solely upon whether the
portion of premiums estimated and collected by the Program
during the reporting period is sufficient to cover the
administrative expenses of carrying out the flood insurance
program, which are reflected in the risk premium rates, cost
of capital, all other costs associated with the transfer of
risk, and expected claims payments for the reporting period.
``(4) Quarterly reports.--During each fiscal year, on a
calendar quarterly basis, the Secretary shall cause to be
published in the Federal Register or comparable method, with
notice to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, information which shall
specify--
``(A) the cumulative volume of policies that have been
underwritten under the National Flood Insurance Program
during such fiscal year through the end of the quarter for
which the report is submitted;
``(B) the types of policies insured, categorized by risk;
``(C) any significant changes between actual and projected
claim activity;
``(D) projected versus actual loss rates;
``(E) the cumulative number of currently insured
repetitive-loss properties, severe repetitive-loss
properties, and extreme repetitive-loss properties that have
been identified during such fiscal year through the end of
the quarter for which the report is submitted;
``(F) the cumulative number of properties that have
undergone mitigation assistance, through the National Flood
Insurance Program, during such fiscal year through the end of
the quarter for which the report is submitted; and
``(G) the number and location, by State or territory, of
each policyholder that has been identified for such fiscal
year as an eligible household for purposes of the flood
insurance affordability program under section 1326.
The first quarterly report under this paragraph shall be
submitted on the last day of the first quarter of fiscal year
2018, or on the last day of the first full calendar quarter
following the enactment of the 21st Century Flood Reform Act,
whichever occurs later.''.
SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE
AFFORDABILITY SURCHARGE.
(a) In General.--Section 1308A of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015a) is amended--
(1) in subsection (a), by striking the first sentence and
inserting the following: ``The Administrator shall impose and
collect a non-refundable annual surcharge, in the amount
provided in subsection (b), on all policies for flood
insurance coverage under the National Flood Insurance Program
that are newly issued or renewed after the date of the
enactment of this section.''; and
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Amount.--The amount of the surcharge under subsection
(a) shall be $40, except as follows:
``(1) Non-primary residences eligible for prp.--The amount
of the surcharge under subsection (a) shall be $125 in the
case of in the case of a policy for any property that is--
``(A) a residential property that is not the primary
residence of an individual, and
``(B) eligible for preferred risk rate method premiums.
``(2) Non-residential properties and non-primary residences
not eligible for prp.--The amount of the surcharge under
subsection (a) shall be $275 in case of in the case of a
policy for any property that is--
``(A) a non-residential property; or
``(B) a residential property that is--
``(i) not the primary residence of an individual; and
``(ii) not eligible for preferred risk rate method
premiums.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to policies for flood insurance
coverage under the National Flood Insurance Act of 1968 that
are newly issued or renewed after the expiration of the 12-
month period beginning on the date of the enactment of this
Act.
SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.
Section 1310A of the National Flood Insurance Act of 1968
(42 U.S.C. 4017A) is amended--
(1) in subsection (c)(2)(D), by inserting before the period
at the end the following: ``,
[[Page H9221]]
including any provisions relating to chargeable premium rates
or annual increases of such rates'';
(2) in subsection (c)(3), by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) Parity.--In exercising the authority granted under
paragraph (1) to increase premiums, the Administrator shall
institute a single annual, uniform rate of assessment for all
individual policyholders.''; and
(3) in subsection (d)--
(A) by striking paragraph (1) and inserting the following
new paragraph:
``(1) In general.--Beginning in fiscal year 2018 and not
ending until the fiscal year in which the ratio required
under subsection (b) is achieved--
``(A) in each 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); and
``(B) if in any given fiscal year the Administrator fails
to comply with subparagraph (A), for the following fiscal
year the Administrator shall increase the rate of the annual
assessment pursuant to subsection (c)(3)(A) by at least one
percentage point over the rate of the annual assessment
pursuant to subsection (c)(3)(A) in effect on the first day
of such given fiscal year.'';
(B) in paragraph (2), by inserting before the period at the
end the following: ``nor to increase assessments pursuant to
paragraph (1)(B)''; and
(C) in paragraph (3), by inserting before the period at the
end the following: ``and paragraph (1)(B) shall apply until
the fiscal year in which the ratio required under subsection
(b) is achieved''.
SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS
PROPERTIES.
(a) Definition.--Section 1370 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4121), as amended by the
preceding provisions of this Act, is further amended--
(1) in subsection (a)--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8) through (18) as
paragraphs (7) through (17), respectively; and
(2) by adding at the end the following new subsection:
``(d) Multiple-Loss Properties.--
``(1) Definitions.--As used in this title:
``(A) Multiple-loss property.--The term `multiple-loss
property' means any property that is a repetitive-loss
property, a severe repetitive-loss property, or an extreme
repetitive-loss property.
``(B) Qualified claims payment.--The term `qualified claims
payment' means a claims payment of any amount made under
flood insurance coverage under this title in connection with
loss resulting from a flood event that occurred after the
date of the enactment of the 21st Century Flood Reform Act,
but not including any claim that occurred before a structure
was made compliant with State and local floodplain management
requirements.
``(C) Repetitive-loss property.--The term `repetitive-loss
property' means a structure that has incurred flood damage
for which two or more separate claims payments of any amount
have been made under flood insurance coverage under this
title.
``(D) Severe repetitive-loss property.--The term `severe
repetitive-loss property' means a structure that has incurred
flood damage for which--
``(i) 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) at least 2 separate claims payments have been made
under flood insurance coverage under this title, with the
cumulative amount of such claims payments exceeding the value
of the structure.
``(E) Extreme repetitive-loss property.--The term `extreme
repetitive-loss property' means a structure that has incurred
flood damage for which at least 2 separate claims have been
made under flood insurance coverage under this title, with
the cumulative amount of such claims payments exceeding 150
percent of the maximum coverage amount available for the
structure.
``(2) Treatment of claims before compliance with state and
local requirements.--The Administrator shall not consider
claims that occurred before a structure was made compliant
with State and local floodplain management requirements for
purposes of determining a structure's status as a multiple-
loss property.''.
(b) Premium Adjustment to Reflect Current Flood Risk.--
(1) In general.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015), as amended by the
preceding provisions of this Act, is further amended by
adding at the end the following new subsection:
``(p) Premium Adjustment to Reflect Current Flood Risk.--
``(1) In general.--Except as provided in paragraph (2), the
Administrator shall rate a property for which two or more
qualified claims payments have been made and that is charged
a risk premium rate estimated under section 1307(a)(1) (42
U.S.C. 4014(a)(1)) based on the current risk of flood
reflected in the flood insurance rate map in effect at the
time of rating.
``(2) Adjustment for existing policies.--Notwithstanding
subsection (e) of this section, for policies for flood
insurance under this title in force on the date of the
enactment of this Act for properties described in paragraph
(1)--
``(A) for any property for which two qualified claims
payments have been made, the Administrator shall increase
risk premium rates by 10 percent each year until such rates
comply with paragraph (1) of this subsection; and
``(B) for any property for which three or more qualified
claims payments have been made, the Administrator shall
increase risk premium rates by 15 percent each year until
such rates comply with paragraph (1) of this subsection.''.
(2) Conforming amendment.--Section 1307(g)(2) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)(2))
is amended by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) in connection with a multiple-loss property.''.
(c) Pre-FIRM Multiple-loss Property.--
(1) Termination of subsidy.--Section 1307 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended--
(A) in subsection (a)(2)--
(i) by striking subparagraph (C) and inserting the
following new subparagraph:
``(C) any extreme repetitive-loss property;'';
(ii) in subparagraph (D), by striking ``or'';
(iii) in subparagraph (E)--
(I) in clause (i), by striking ``fair''; and
(II) in clause (ii)--
(aa) by striking ``fair''; and
(bb) by striking ``and'' and inserting ``or''; and
(iv) by adding at the end the following new subparagraph:
``(F) any property for which two or more qualified claims
payments have been made; and''; and
(B) by striking subsection (h).
(2) Annual limitation on premium increases.--Subsection (e)
of section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(e)) is amended--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4)--
(i) by striking ``the chargeable risk'' and inserting
``notwithstanding paragraph (5), the chargeable risk''; and
(ii) by striking ``described under paragraph (3).'' and
inserting ``estimated under section 1307(a)(1); and''; and
(C) by adding at the end the following new paragraph:
``(5) the chargeable risk premium rates for flood insurance
under this title for any properties described in subparagraph
(F) of section 1307(a)(2) shall be increased--
``(A) for any property for which two qualified claims
payments have been made, by 10 percent each year, until the
average risk premium rate for such property is equal to the
average of the risk premium rates for properties estimated
under section 1307(a)(1); and
``(B) for any property for which three or more qualified
claims payments have been made, by 15 percent each year,
until the average risk premium rate for such property is
equal to the average of the risk premium rates for properties
estimated under section 1307(a)(1).''.
(d) Minimum Deductibles for Certain Multiple-loss
Properties.--
(1) Clerical amendment.--The National Flood Insurance Act
of 1968, as amended by the preceding provisions of this Act,
is further amended--
(A) by transferring subsection (b) of section 1312 (42
U.S.C. 4019(b)) to section 1306 (42 U.S.C. 4013), inserting
such subsection at the end of such section, and redesignating
such subsection as subsection (f); and
(B) in section 1312 (42 U.S.C. 4019), by redesignating
subsection (c) as subsection (b).
(2) Certain multiple-loss properties.--Subsection (f) of
section 1306 of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(e)), as so transferred and redesignated by
paragraph (1) of this subsection, is amended adding at the
end the following new paragraph:
``(3) Certain multiple-loss properties.--Notwithstanding
paragraph (1) or (2), the minimum annual deductible for
damage to any severe repetitive-loss property or extreme
repetitive-loss property shall be not less than $5,000.''.
(e) Claim History Validation.--Beginning not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act, the Administrator of the Federal
Emergency Management Agency shall undertake efforts to
validate the reasonable accuracy of claim history data
maintained pursuant to the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.).
(f) Increased Cost of Compliance Coverage.--Subparagraph
(A) of section 1304(b)(1) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4011(b)(1)(A)), as amended by the
preceding provisions of this Act, is further amended by
striking ``repetitive loss structures'' and inserting
``multiple-loss properties''.
(g) Availability of Insurance for Multiple-Loss
Properties.--
(1) In general.--The National Flood Insurance Act of 1968
is amended by inserting after section 1304 (42 U.S.C. 4011)
the following new section:
``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS
PROPERTIES.
``(a) Date and Information Identifying Current Flood
Risk.--The Administrator may provide flood insurance coverage
under this title for a multiple-loss property only if
[[Page H9222]]
the owner of the property submits to the Administrator such
data and information necessary to determine such property's
current risk of flood, as determined by the Administrator, at
the time of application for or renewal of such coverage.
``(b) Refusal To Mitigate.--
``(1) In general.--Except as provided pursuant to paragraph
(2), the Administrator may not make flood insurance coverage
available under this title for any extreme repetitive-loss
property for which a claim payment for flood loss was made
under coverage made available under this title that occurred
after the date of enactment of the 21st Century Flood Reform
Act if the property owner refuses an offer of mitigation for
the property under section 1366(a)(2) (42 U.S.C.
4104c(a)(2)).
``(2) Exceptions; appeals.--The Director shall develop
guidance to provide appropriate exceptions to the prohibition
under paragraph (1) and to allow for appeals to such
prohibition.''.
(2) Effective date.--Section 1304A of the National Flood
Insurance Act of 1968, as added by paragraph (1) of this
subsection, shall apply beginning upon the expiration of the
12-month period beginning on the date of the enactment of
this Act.
(h) Rates for Properties Newly Mapped Into Areas With
Special Flood Hazards.--Subsection (i) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(i)) is
amended--
(1) by striking the subsection designation and all that
follows through ``Notwithstanding'' and inserting the
following:
``(i) Rates for Properties Newly Mapped Into Areas With
Special Flood Hazards.--
``(1) In general.--Except as provided in paragraph (2) and
notwithstanding'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the left
margins of such subparagraphs, as so redesignated, and the
matter following subparagraph (B), 2 ems to the right; and
(3) by adding at the end the following new paragraph:
``(2) Inapplicability to multiple-loss properties.--
Paragraph (1) shall not apply to multiple-loss properties.''.
(i) Clear Communication of Multiple-loss Property Status.--
(1) In general.--Subsection (l) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new paragraph:
``(2) Multiple-loss properties.--Pursuant to paragraph (1),
the Administrator shall clearly communicate to all
policyholders for multiple-loss properties before the
effectiveness of any such new or renewed coverage and after
each qualified claims payment for the property--
``(A) the availability of flood mitigation assistance under
section 1366; and
``(B) the effect on the premium rates charged for such a
property of filing any further claims under a flood insurance
policy with respect to that property.''.
(j) Mitigation Assistance Program.--Section 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting
after the period at the end of the first sentence the
following: ``Priority under the program shall be given to
providing assistance with respect to multiple-loss
properties.'';
(B) in paragraph (1), by inserting ``and'' after the
semicolon at the end; and
(C) by striking paragraphs (2) and (3) and inserting the
following:
``(2) to property owners, in coordination with the State
and community, in the form of direct grants under this
section for carrying out mitigation activities that reduce
flood damage to extreme repetitive-loss properties.
The Administrator shall take such actions as may be necessary
to ensure that grants under this subsection are provided in a
manner that is consistent with the delivery of coverage for
increased cost of compliance provided under section
1304(b).'';
(2) in subsection (c)(2)(A)(ii), by striking ``severe
repetitive loss structures'' and inserting ``multiple-loss
properties'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``Severe repetitive loss structures'' and
inserting ``Extreme repetitive-loss properties''; and
(ii) by striking ``severe repetitive loss structures'' and
inserting ``extreme repetitive-loss properties'';
(B) in paragraph (2)--
(i) by striking ``Repetitive loss structures'' and
inserting ``Severe repetitive-loss properties'';
(ii) by striking ``repetitive loss structures'' and
inserting ``severe repetitive-loss properties''; and
(iii) by striking ``90 percent'' and inserting ``100
percent'';
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following new
paragraph:
``(3) Repetitive-loss property.--In the case of mitigation
activities to repetitive-loss properties, in an amount up to
100 percent of all eligible costs.'';
(4) in subsection (h)--
(A) by striking paragraphs (2) and (3);
(B) by striking the subsection designation and all that
follows through ``shall apply:''; and
(C) in paragraph (1)--
(i) by striking ``Community'' and inserting ``Definition of
Community'';
(ii) by striking ``The'' and inserting ``For purposes of
this section, the'';
(iii) by redesignating such paragraph as subsection (j);
(iv) in subparagraph (B), by striking ``subparagraph (A)''
and inserting ``paragraph (1)'';
(v) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively;
(vi) in paragraph (1), as so redesignated by clause (v) of
this subparagraph, by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively (and moving the
margins two ems to the left); and
(vii) by moving the left margins of subsection (j) (as so
redesignated) and paragraphs (1) and (2), all as so
redesignated, two ems to the left; and
(5) by inserting after subsection (g) the following new
subsections:
``(h) Alignment With Increased Cost of Compliance.--
Notwithstanding any provision of law, any funds appropriated
for assistance under this title may be transferred to the
National Flood Insurance Fund established under section 1310
(42 U.S.C. 4017) for the payment of claims to enable the
Administrator to deliver grants under subsection (a)(2) of
this section to align with the delivery of coverage for
increased cost of compliance for extreme repetitive-loss
properties.
``(i) Funding.--
``(1) Authorization of appropriations.--Notwithstanding any
other provision of law, assistance provided under this
section shall be funded by--
``(A) $225,000,000 in each fiscal year, subject to
offsetting collections, through risk premium rates for flood
insurance coverage under this title, and shall be available
subject to section 1310(f);
``(B) any penalties collected under section 102(f) the
Flood Disaster Protect Act of 1973 (42 U.S.C. 4012a(f); and
``(C) any amounts recaptured under subsection (e) of this
section.
The Administrator may not use more than 5 percent of amounts
made available under this subsection to cover salaries,
expenses, and other administrative costs incurred by the
Administrator to make grants and provide assistance under
this section.
``(2) Availability.--Amounts appropriated pursuant to this
subsection for any fiscal year may remain available for
obligation until expended.''.
(k) Repeal.--Section 1367 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104d) is repealed.
SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH
EXCESSIVE LIFETIME CLAIMS.
Section 1305 of the National Flood Insurance Act of 1968
(42 U.S.C. 4012) is amended by adding at the end the
following new subsection:
``(e) Prohibition of Coverage for Properties With Excessive
Lifetime Claims.--The Administrator may not make available
any new or renewed coverage for flood insurance under this
title for any multiple-loss property for which the aggregate
amount in claims payments that have been made after the
expiration of the 18-month period beginning on the date of
the enactment of this subsection under flood insurance
coverage under this title exceeds three times the amount of
the replacement value of the structure.''.
SEC. 507. PAY FOR PERFORMANCE AND STREAMLINING COSTS AND
REIMBURSEMENT.
Section 1345 of the National Flood Insurance Act of 1968
(42 U.S.C. 4081), as amended by the preceding provisions of
this Act, is further amended by adding at the end the
following subsection:
``(g) Write Your Own Allowance and Program Savings.--
``(1) Allowance rate.--
``(A) Limitation.--The allowance paid to companies
participating in the Write Your Own Program (as such term is
defined in section 1370 (42 U.S.C. 4004)) with respect to a
policy for flood insurance coverage made available under this
title shall not be greater than 27.9 percent of the
chargeable premium for such coverage.
``(B) Inapplicability.--Subparagraph (A) shall not apply to
actual and necessary costs related to section 1312(a) (42
U.S.C, 4019(a)), or to payments deemed necessary by the
Administrator.
``(C) Implementation.--The limitation in subparagraph (A)
shall be imposed by equal reductions over the 3-year period
beginning on the date of the enactment of this subsection.
``(2) Program savings.--
``(A) Implementation.--The Administrator, within three
years of the date of the enactment of this Act, shall reduce
the costs and unnecessary burdens for the companies
participating in the Write Your Own program by at least half
of the amount by which the limitation under paragraph (1)(A)
reduced costs compared to the costs as of the date of the
enactment of this subsection.
``(B) Consideration of savings.--In meeting the requirement
of subparagraph (A), the Administrator shall consider savings
including--
``(i) indirect payments by the Administrator of premium;
``(ii) eliminating unnecessary communications requirements;
``(iii) reducing the frequency of National Flood Insurance
Program changes;
[[Page H9223]]
``(iv) simplifying the flood rating system; and
``(v) other ways of streamlining the Program to reduce
costs while maintaining customer service and distribution.''.
SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.
(a) Penalties.--Paragraph (5) of section 102(f) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5))
is amended by striking ``$2,000'' and inserting ``$5,000''.
(b) Insured Depository Institutions.--Subparagraph (A) of
section 10(i)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1820(i)(2)(A)) is amended by striking ``date of
enactment of the Riegle Community Development and Regulatory
Improvement Act of 1994 and biennially thereafter for the
next 4 years'' and inserting ``date of enactment of the 21st
Century Flood Reform Act and biennially thereafter''.
(c) Credit Unions.--Subparagraph (A) of section 204(e)(2)
of the Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is
amended by striking ``date of enactment of the Riegle
Community Development and Regulatory Improvement Act of 1994
and biennially thereafter for the next 4 years'' and
inserting ``date of enactment of the 21st Century Flood
Reform Act and annually thereafter''.
(d) Government-Sponsored Enterprises.--Paragraph (4) of
section 1319B(a) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is
amended, in the matter after and below subparagraph (B), by
striking ``first, third, and fifth annual reports under this
subsection required to be submitted after the expiration of
the 1-year period beginning on the date of enactment of the
Riegle Community Development and Regulatory Improvement Act
of 1994'' and inserting ``first annual report under this
subsection required to be submitted after the expiration of
the 1-year period beginning on the date of enactment of the
21st Century Flood Reform Act and every such second annual
report thereafter''.
(e) Guidelines.--The Federal entities for lending
regulation (as such term is defined in section 3(a) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a))),
in consultation with the Administrator of the Federal
Emergency Management Agency, shall jointly update and reissue
the rescinded document of the Administrator entitled
``Mandatory Purchase of Flood Insurance Guidelines'' (lasted
updated on October 29, 2014). The updated document shall
incorporate recommendations made by the Comptroller General
pursuant to the study conducted under section 514 of this
Act.
SEC. 509. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN
STATES ALLOWING ALL-PERILS POLICIES.
Section 102 of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a), as amended by the preceding provisions of
this Act, is further amended--
(1) in subsection (a), by striking ``After'' and inserting
``Subject to subsection (i) of this section, after'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``Each'' and inserting
``Subject to subsection (i) of this section, each'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``A'' the first place
such term appears and inserting ``Subject to subsection (i)
of this section, a'';
(ii) in subparagraph (B), by striking ``Each'' and
inserting ``Subject to subsection (i) of this section,
each''; and
(C) in paragraph (3), by striking ``The'' the first place
such term appears and inserting ``Subject to subsection (i)
of this section, the'';
(3) in subsection (e)(1), by striking ``If'' and inserting
``Subject to subsection (i) of this section, if''; and
(4) by adding at the end the following new subsection:
``(i) Satisfaction of Mandatory Purchase Requirement in
States Allowing All-perils Policies.--
``(1) Waivers.--Subsections (a) and (b) of this section
shall not apply with respect to residential properties in any
State that allows any property insurance coverage that covers
`all-perils' except specifically excluded perils and that
includes coverage for flood perils in an amount at least
equal to the outstanding principal balance of the loan or the
maximum limit of flood insurance coverage made available
under this title with respect to such type of residential
property, whichever is less.
``(2) Definitions, procedures, standards.--The
Administrator may establish such definitions, procedures, and
standards as the Administrator considers necessary for making
determinations under paragraph (1).''.
SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS.
Section 102 of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a), as amended by the preceding provisions of
this Act, is further amended--
(1) in subsection (c)(2)(A), by striking ``$5,000 or less''
and inserting the following: ``$25,000 or less, except that
such amount (as it may have been previously adjusted) shall
be adjusted for inflation by the Administrator upon the
expiration of the 5-year period beginning upon the enactment
of the 21st Century Flood Reform Act and upon the expiration
of each successive 5-year period thereafter, in accordance
with an inflationary index selected by the Administrator'';
and
(2) by adding at the end the following new subsection:
``(j) Flood Insurance Purchase Requirements.--
Notwithstanding any other provision of law, a State or local
government or private lender may require the purchase of
flood insurance coverage for a structure that is located
outside of an area having special flood hazards.''.
SEC. 511. CLARIFICATIONS; DEADLINE FOR APPROVAL OF CLAIMS.
(a) Rule of Construction.--Part C of chapter II of the
National Flood Insurance Act of 1968 (42 U.S.C. 4081 et
seq.), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new
section:
``SEC. 1350. RULE OF CONSTRUCTION.
``A policyholder of a policy for flood insurance coverage
made available under this title must exhaust all
administrative remedies, including submission of disputed
claims to appeal under any appeal process made available by
the Administrator, prior to commencing legal action on any
disputed claim under such a policy.''.
(b) Deadline for Approval of Claims.--
(1) In general.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as amended by the
preceding provisions of this Act, is further amended--
(A) in subsection (a), by striking ``The Administrator''
and inserting ``Subject to the other provisions of this
section, the Administrator''; and
(B) by adding at the end the following new subsection:
``(c) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide that, in
the case of any claim for damage to or loss of property under
flood insurance coverage made available under this title, an
initial determination regarding approval of a claim for
payment or disapproval of the claim be made, and notification
of such determination be provided to the insured making such
claim, not later than the expiration of the 120-day period
(as such period may be extended pursuant to paragraph (2))
beginning upon the day on which the policyholder submits a
signed proof of loss detailing the damage and amount of the
loss. Payment of approved claims shall be made as soon as
possible after such approval.
``(2) Extension of deadline.--The Administrator shall
provide that the period referred to in paragraph (1) may be
extended by a single additional period of 15 days in cases
where extraordinary circumstances are demonstrated. The
Administrator shall, by regulation, establish criteria for
demonstrating such extraordinary circumstances and for
determining to which claims such extraordinary circumstances
apply.''.
(2) Applicability.--The amendments made by paragraph (1)
shall apply to any claim under flood insurance coverage made
available under the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.) pending on the date of the enactment of
this Act and any claims made after such date of enactment.
SEC. 512. RISK TRANSFER REQUIREMENT.
Subsection (e) of section 1345 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended--
(1) by striking ``(e) Risk Transfer.--The Administrator''
and inserting the following:
``(e) Risk Transfer.--
``(1) Authority.--The Administrator''; and
(2) by adding at the end the following new paragraph:
``(2) Required risk transfer coverage.--
``(A) Requirement.--Not later than the expiration of the
18-month period beginning upon the date of the enactment of
this paragraph and at all times thereafter, the Administrator
shall annually cede a portion of the risk of the flood
insurance program under this title to the private reinsurance
or capital markets, or any combination thereof, and at rates
and terms that the Administrator determines to be reasonable
and appropriate, in an amount that--
``(i) is sufficient to maintain the ability of the program
to pay claims; and
``(ii) manages and limits the annual exposure of the flood
insurance program to flood losses in accordance with the
probable maximum loss target established for such year under
subparagraph (B).
``(B) Probable maximum loss target.--The Administrator
shall for each fiscal year, establish a probable maximum loss
target for the national flood insurance program that shall be
the maximum probable loss under the national flood insurance
program that is expected to occur in such fiscal year.
``(C) Considerations.--In establishing the probable maximum
loss target under subparagraph (B) for each fiscal year and
carrying out subparagraph (A), the Administrator shall
consider--
``(i) the probable maximum loss targets for other United
States public natural catastrophe insurance programs,
including as State wind pools and earthquake programs;
``(ii) the probable maximum loss targets of other risk
management organizations, including the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation;
``(iii) catastrophic, actuarial, and other appropriate data
modeling results of the national flood insurance program
portfolio;
``(iv) the availability of funds in the National Flood
Insurance Fund established under section 1310 (42 U.S.C.
4017);
``(v) the availability of funds in the National Flood
Insurance Reserve Fund established under section 1310A (42
U.S.C. 4017a);
[[Page H9224]]
``(vi) the availability of borrowing authority under
section 1309 (42 U.S.C. 4016);
``(vii) the ability of the Administrator to repay
outstanding debt;
``(viii) amounts appropriated to the Administrator to carry
out the national flood insurance program;
``(ix) reinsurance, capital markets, catastrophe bonds,
collateralized reinsurance, resilience bonds, and other
insurance-linked securities, and other risk transfer
opportunities; and
``(x) any other factor the Administrator determines
appropriate.
``(D) Multi-year contracts.--Nothing in this paragraph may
be construed to prevent or prohibit the Administrator from
complying with the requirement under subparagraph (A)
regarding ceding risk through contracts having a duration
longer than one year.''.
SEC. 513. GAO STUDY OF SIMPLIFICATION OF NATIONAL FLOOD
INSURANCE PROGRAM.
(a) Study.--The Comptroller General of the United States
shall conduct a study of options for simplifying flood
insurance coverage made available under the National Flood
Insurance Act, which shall include the following:
(1) An analysis of how the administration of the National
Flood Insurance Program can be simplified--statutorily,
regulatorily, and administratively--for private flood
insurance policyholders, companies, agents, mortgage lenders,
and flood insurance vendors.
(2) An assessment of ways in which flood insurance coverage
made available under the National Flood Insurance Act and the
program for providing and administrating such coverage may be
harmonized with private insurance industry standards.
(3) Identification and analysis of ways in which the
structure of the National Flood Insurance Program may be
simplified, including analysis of the efficacy and effects
each of the following actions:
(A) Eliminating the use of two deductibles under the
Program.
(B) Including in claims for flood-damages full replacement
cost for property not damaged, but rendered unusable, by the
flooding.
(C) Using umbrella policies that allow multiple structures
on a property to be insured under the same policy.
(b) Report.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act,
the Comptroller General shall submit a report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate regarding the findings and
conclusions of the study conducted pursuant to this section.
SEC. 514. GAO STUDY ON ENFORCEMENT OF MANDATORY PURCHASE
REQUIREMENTS.
(a) In General.--The Comptroller General of the United
States shall conduct a study of the implementation and
efficacy of the requirements of section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a). Such study
shall at minimum consider the following questions:
(1) How effectively do Federal agencies, regulated lending
institutions, and Federal entities for lending regulation
implement the requirements of section 102 of the Flood
Disaster Protection Act of 1973?
(2) Does the current implementation of Flood Disaster
Protection Act of 1973 align with the congressional findings
and purposes described in section 2(b) of such Act (42 U.S.C.
4002)?
(3) What is the current level of compliance with section
102?
(4) What are the estimated historical impacts on revenue to
the National Flood Insurance Program based on the current
level of compliance of section 102?
(5) Is the current monitoring and tracking framework in
place sufficient to ensure compliance with section 102?
(6) What is the best way to establish a consolidated,
comprehensive, and accurate repository of data on compliance
with section 102?
(7) What, if any, unintended consequences have resulted
from the requirements and implementation of section 102?
(8) How can Federal agencies and regulated lending
institutions improve compliance with section 102?
(b) Report.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act,
the Comptroller General shall submit a report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate regarding the findings and
conclusions of the study conducted pursuant to this section.
TITLE VI--ADMINISTRATIVE REFORMS
SEC. 601. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE
NATIONAL FLOOD INSURANCE PROGRAM.
Part C of chapter 2 of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE
NATIONAL FLOOD INSURANCE PROGRAM.
``(a) Prohibited Acts.--A person shall not knowingly make a
false or misleading statement, production, or submission in
connection with the proving or adjusting of a claim for flood
insurance coverage made available under this Act. Such
prohibited acts include--
``(1) knowingly forging an engineering report, claims
adjustment report or technical assistance report used to
support a claim determination;
``(2) knowingly making any materially false, fictitious, or
fraudulent statement or representation in an engineering
report, claims adjustment report, or technical assistance
report to support a claim determination;
``(3) knowingly submitting a materially false, fictitious,
or fraudulent claim.
``(b) Civil Enforcement.--The Attorney General may bring a
civil action for such relief as may be appropriate whenever
it appears that any person has violated or is about to
violate any provision of this section. Such action may be
brought in an appropriate United States district court.
``(c) Referral to Attorney General.--The Administrator
shall expeditiously refer to the Attorney General for
appropriate action any evidence developed in the performance
of functions under this Act that may warrant consideration
for criminal or civil prosecution.
``(d) Penalties.--
``(1) Civil monetary penalty.--Any person who violates
subsection (a) shall be subject to a civil penalty of not
more than $10,000 for each violation, which shall be
deposited into the National Flood Insurance Fund established
under section 1310 (42 U.S.C. 4017).
``(2) Suspension and debarment.--Any person who violates
subsection (a) shall not be eligible, for a period of not
less than 2 years and not to exceed 5 years, to--
``(A) receive flood insurance coverage pursuant to this
title; or
``(B) provide services in connection with the selling,
servicing, or handling of claims for flood insurance policies
provided pursuant to this title.
``(3) Other penalties.--The penalties provided for in this
subsection shall be in addition to any other civil or
criminal penalty available under law.''.
SEC. 602. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.
(a) Establishment.--Part C of chapter II of the National
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 1352. APPROVAL OF DECISIONS RELATING TO FLOOD
INSURANCE COVERAGE.
``(a) In General.--The Administrator shall establish an
appeals process to enable holders of a flood insurance policy
provided under this title to appeal the decisions of their
insurer, with respect to the disallowance, in whole or in
part, of any claims for proved and approved losses covered by
flood insurance. Such appeals shall be limited to the claim
or portion of the claim disallowed by the insurer.
``(b) Appeal Decision.--Upon a decision in an appeal under
subsection (a), the Administrator shall provide the
policyholder with a written appeal decision. The appeal
decision shall explain the Administrator's determination to
uphold or overturn the decision of the flood insurer. The
Administrator may direct the flood insurer to take action
necessary to resolve the appeal, to include re-inspection,
re-adjustment, or payment, as appropriate.
``(c) Rules of Construction.--This section shall not be
construed as--
``(1) making the Federal Emergency Management Agency or the
Administrator a party to the flood insurance contract; or
``(2) creating any action or remedy not otherwise provided
by this title.''.
(b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is
hereby repealed.
SEC. 603. DEADLINE FOR APPROVAL OF CLAIMS.
(a) In General.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as amended by the
preceding provisions of this Act, is further amended by
adding at the end the following new subsection:
``(d) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide that, in
the case of any claim for damage to or loss of property under
flood insurance coverage made available under this title, a
final determination regarding approval of a claim for payment
or disapproval of the claim be made, and notification of such
determination be provided to the insured making such claim,
not later than the expiration of the 90-day period (as such
period may be extended pursuant to paragraph (2)) beginning
upon the day on which such claim was made. Payment of
approved claims shall be made as soon as possible after such
approval.
``(2) Extension of deadline.--The Administrator shall
provide that the period referred to in paragraph (1) may be
extended by a single additional period of 15 days in cases
where extraordinary circumstances are demonstrated. The
Administrator shall, by regulation, establish criteria for
demonstrating such extraordinary circumstances and for
determining to which claims such extraordinary circumstances
apply.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply to any claim under flood insurance coverage made
available under the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.) pending on the date of the enactment of
this Act and any claims made after such date of enactment.
[[Page H9225]]
SEC. 604. LITIGATION PROCESS OVERSIGHT AND REFORM.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1353. OVERSIGHT OF LITIGATION.
``(a) Oversight.--The Administrator shall monitor and
oversee litigation conducted by Write Your Own companies
arising under contracts for flood insurance sold pursuant to
this title, to ensure that--
``(1) litigation expenses are reasonable, appropriate, and
cost-effective; and
``(2) Write Your Own companies comply with guidance and
procedures established by the Administrator regarding the
conduct of litigation.
``(b) Denial of Reimbursement for Expenses.--The
Administrator may deny reimbursement for litigation expenses
that are determined to be unreasonable, excessive, contrary
to guidance issued by the Administrator, or outside the scope
of any arrangement entered into with a Write Your Own
company.
``(c) Litigation Strategy.--The Administrator may direct
litigation strategy for claims arising under a contract for
flood insurance sold by a Write Your Own company.''.
SEC. 605. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1354. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
``The Administrator may not at any time newly employ in
connection with the flood insurance program under this title
any attorney who has been suspended or disbarred by any
court, bar, or Federal or State agency to which the
individual was previously admitted to practice.''.
SEC. 606. TECHNICAL ASSISTANCE REPORTS.
(a) Use.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new subsection:
``(e) Use of Technical Assistance Reports.--When adjusting
claims for any damage to or loss of property which is covered
by flood insurance made available under this title, the
Administrator may rely upon technical assistance reports, as
such term is defined in section 1312A, only if such reports
are final and are prepared in compliance with applicable
State and Federal laws regarding professional licensure and
conduct.''.
(b) Disclosure.--The National Flood Insurance Act of 1968
is amended by inserting after section 1312 (42 U.S.C. 4019)
the following new section:
``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.
``(a) In General.--Notwithstanding section 552a of title 5,
United States Code, upon request by a policyholder, the
Administrator shall provide a true, complete, and unredacted
copy of any technical assistance report that the
Administrator relied upon in adjusting and paying for any
damage to or loss of property insured by the policyholder and
covered by flood insurance made available under this title.
Such disclosures shall be in addition to any other right of
disclosure otherwise made available pursuant such section
552a or any other provision of law.
``(b) Direct Disclosure by Write Your Own Companies and
Direct Servicing Agents.--A Write Your Own company or direct
servicing agent in possession of a technical assistance
report subject to disclosure under subsection (a) may
disclose such technical assistance report without further
review or approval by the Administrator.
``(c) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Policyholder.--The term `policyholder' means a person
or persons shown as an insured on the declarations page of a
policy for flood insurance coverage sold pursuant to this
title.
``(2) Technical assistance report.--The term `technical
assistance report' means a report created for the purpose of
furnishing technical assistance to an insurance claims
adjuster assigned by the National Flood Insurance Program,
including by engineers, surveyors, salvors, architects, and
certified public accounts.''.
SEC. 607. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD
INSURANCE POLICIES.
Section 100234 of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4013a) is amended by adding at the end
the following new subsection:
``(c) Disclosure of Coverage.--
``(1) Disclosure sheet.--Each policy under the National
Flood Insurance Program shall include a disclosure sheet that
sets forth, in plain language--
``(A) the definition of the term `flood' for purposes of
coverage under the policy;
``(B) a description of what type of flood forces are
necessary so that losses from an event are covered under the
policy, including overflow of inland or tidal waves, unusual
and rapid accumulation or runoff of a surface any source, and
mudflow;
``(C) a statement of the types and characteristics of
losses that are not covered under the policy;
``(D) a summary of total cost and amount of insurance
coverage, and any other information relating to such coverage
required to be disclosed under section 1308(l) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(l));
``(E) a statement that the disclosure sheet provides
general information about the policyholder's standard flood
insurance policy;
``(F) a statement that the standard flood insurance policy,
together with the endorsements and declarations page, make up
the official contract and are controlling in the event that
there is any difference between the information on the
disclosure sheet and the information in the policy; and
``(G) a statement that if the policyholder has any
questions regarding information in the disclosure sheet or
policy he or she should contact the entity selling the policy
on behalf of the Program, together with contact information
sufficient to allow the policyholder to contact such entity.
``(2) Acknowledgment sheet.--Each policy under the National
Flood Insurance Program shall include an acknowledgment sheet
that sets forth, in plain language--
``(A) a statement of whether or not there is a basement in
the property to be covered by the policy;
``(B) a statement of whether or not the policy provides
coverage for the contents of the property covered by the
policy;
``(C) a statement that the standard flood insurance policy,
together with the endorsements and declarations page, make up
the official contract and are controlling in the event that
there is any difference between the information on the
acknowledgment sheet and the information in the policy; and
``(D) a statement that if the policyholder has any
questions regarding information in the acknowledgment sheet
or policy he or she should contact the entity selling the
policy on behalf of the Program, together with contact
information sufficient to allow the policyholder to contact
such entity.
``(3) Required signatures.--Notwithstanding section 1306(c)
of the National Flood Insurance Act of 1968 (42 U.S.C.
4013(c)), a policy for flood insurance coverage under the
National Flood Insurance Program may not take effect unless
the disclosure sheet required under paragraph (1) and the
acknowledgment sheet required under paragraph (2), with
respect to the policy, are signed and dated by the
policyholder and the seller of the policy who is acting on
behalf of the Program.''.
SEC. 608. RESERVE FUND AMOUNTS.
Section 1310 of the National Flood Insurance Act of 1968
(42 U.S.C. 4017) is amended by adding at the end the
following new subsection:
``(g) Crediting of Reserve Fund Amounts.--Funds collected
pursuant to section 1310A may be credited to the Fund under
this section to be available for the purpose described in
subsection (d)(1).''.
SEC. 609. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE
ADVOCATE.
(a) In General.--Section 24 of the Homeowner Flood
Insurance Affordability Act of 2014 (42 U.S.C. 4033) is
amended by adding at the end the following new subsection:
``(c) Staff.--The Administrator shall ensure that the Flood
Insurance Advocate has sufficient staff to carry out all of
the duties and responsibilities of the Advocate under this
section.''.
(b) Timing.--The Administrator of the Federal Emergency
Management Agency shall take such actions as may be necessary
to provide for full compliance with section 24(c) of the
Homeowner Flood Insurance Affordability Act of 2014, as added
by the amendment made by subsection (a) of this section, not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act.
SEC. 610. LIMITED EXEMPTION FOR DISASTER OR CATASTROPHE
CLAIMS ADJUSTERS.
Section 7 of the Fair Labor Standards Act of 1938 (29
U.S.C. 207) is amended by adding at the end the following:
``(s)(1) The provisions of this section shall not apply for
a period of 2 years after the occurrence of a major disaster
to any employee--
``(A) employed to adjust or evaluate claims resulting from
or relating to such major disaster, by an employer not
engaged, directly or through an affiliate, in underwriting,
selling, or marketing property, casualty, or liability
insurance policies or contracts;
``(B) who receives from such employer on average weekly
compensation of not less than $591.00 per week or any minimum
weekly amount established by the Secretary, whichever is
greater, for the number of weeks such employee is engaged in
any of the activities described in subparagraph (C); and
``(C) whose duties include any of the following:
``(i) interviewing insured individuals, individuals who
suffered injuries or other damages or losses arising from or
relating to a disaster, witnesses, or physicians;
``(ii) inspecting property damage or reviewing factual
information to prepare damage estimates;
``(iii) evaluating and making recommendations regarding
coverage or compensability of claims or determining liability
or value aspects of claims;
``(iv) negotiating settlements; or
``(v) making recommendations regarding litigation.
``(2) Notwithstanding any other provision of section 18, in
the event of a major disaster, this Act exclusively shall
govern all
[[Page H9226]]
such employers in lieu of any State or other Federal law or
regulation or local law or regulation, with respect to the
employees described in paragraph (1).
``(3) The exemption in this subsection shall not affect the
exemption provided by section 13(a)(1).
``(4) For purposes of this subsection--
``(A) the term `major disaster' means any natural
catastrophe, including any hurricane, tornado, storm, high
water, wind driven water, tidal wave, tsunami, earthquake,
volcanic eruption, landslide, mudslide, snowstorm, or
drought, or, regardless of cause, any other catastrophe,
including fire, flood, explosion, land collapse, avalanche,
or pollutant or chemical release;
``(B) the term `employee employed to adjust or evaluate
claims resulting from or relating to such major disaster'
means an individual who timely secured or secures a license
required by applicable law to engage in and perform the
activities described in clauses (i) through (v) of paragraph
(1)(C) relating to a major disaster, and is employed by an
employer that maintains worker compensation insurance
coverage or protection for its employees, if required by
applicable law, and withholds applicable Federal, State, and
local income and payroll taxes from the wages, salaries and
any benefits of such employees; and
``(C) the term `affiliate' means a company that, by reason
of ownership or control of twenty-five percent (25%) or more
of the outstanding shares of any class of voting securities
of one or more companies, directly or indirectly, controls,
is controlled by, or is under common control with, another
company.''.
The SPEAKER pro tempore. The bill shall be debatable for 1 hour
equally divided and controlled by the chair and ranking minority member
of the Committee on Financial Services.
The gentleman from Texas (Mr. Hensarling) and the gentlewoman from
California (Ms. Maxine Waters) each will control 30 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. HENSARLING. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. HENSARLING. Mr. Speaker, I yield myself such time as I may
consume.
Hurricanes Harvey, Irma, Maria: the images of the human misery and
the economic devastation are still clearly imprinted on our minds.
Unfortunately, we know that part of this is a result of a failed
National Flood Insurance Program, which, Mr. Speaker, faced three
important challenges.
First, it is a bankrupt program. It is unsustainable. Taxpayers are
on the hook for $1.2 trillion, running an annual actuarial deficit of
$1.5 billion. It has already received two different bailouts, for a
combined total of about $25 billion.
Also, it incents and subsidizes people to actually live in harm's
way.
Finally, Mr. Speaker, it is a government monopoly that,
notwithstanding subsidized rates, still, unfortunately, has
unaffordable premiums for many.
Today is a good day, Mr. Speaker, because today the House gets to
vote on the 21st Century Flood Reform Act.
I thank the gentleman from Missouri (Mr. Luetkemeyer) for his
leadership on the mapping reforms and reinsurance. I want to thank the
gentleman from Florida (Mr. Ross) for his reforms on opening up the
market. I certainly want to thank the gentleman from Wisconsin (Mr.
Duffy) for his tireless effort and leadership in bringing this bill to
the floor.
There are a lot of good reforms in this bill, Mr. Speaker, for both
taxpayers and ratepayers. Let me just briefly touch upon two.
It is an absolutely revolutionary reform, Mr. Speaker, that we can
break open the government monopoly and bring in market competition,
innovation competition, and more affordable rates for so many.
Milliman, one of the actuarial experts within the marketplace,
released a study a couple of months ago talking about the market
competition, saying: ``Based on our estimates, this would hold for 77
percent of all single families in Florida, 69 percent in Louisiana, and
92 percent in Texas,'' who all would see cheaper premiums.
We know that is not theory. It is actually happening in the market
today. In the nascent part of the market that is open, people are
getting hundreds, if not thousands, of dollars of savings.
One of the great tragedies that I saw in my native State of Texas, in
Houston, was how few people actually took up flood insurance. Think,
Mr. Speaker, if we had competition, if we had advertising, if people
could roll that into their homeowner rates, how many more people would
have been protected by the ravages of these hurricanes.
One more reform, briefly. We have these repetitive loss properties
where people live in areas that flood over and over and over. I met a
couple of families in Houston. They had three floods in 8 years. We
have got to help them.
This bill provides more money for relocation, for flood-proofing, and
for mitigation, than any other flood reform bill, all by 25 percent. We
would prioritize these areas.
We also have to realize that if we are going to make this program
sustainable, we cannot have 1 percent of the properties causing 25
percent of the losses.
{time} 1515
Ultimately, if all we do is rebuild the same properties in the same
fashion in the same location, that is neither wise nor compassionate.
We have an opportunity to enact historic reforms. We should do it
today.
Mr. Speaker, I reserve the balance of my time.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself such
time as I may consume.
Mr. Speaker, I rise today in opposition to H.R. 2874, legislation
that will make flood insurance more expensive, less available, and less
fair for consumers.
At the outset, let me just say that I appreciate the time and effort
that Chairman Hensarling and Mr. Duffy spent in responding to my calls
for bipartisanship. We sat down multiple times to discuss areas where
we could find compromise and a path forward.
Although our discussions were ultimately not successful and I
strongly oppose this bill, I continue to believe that flood insurance
really can be a bipartisan issue. In fact, I have a long history of
working across the aisle on the National Flood Insurance Program.
In 2012, I coauthored the Biggert-Waters Act with former
Representative Judy Biggert, and in 2014, when FEMA's botched
implementation of the premium increases called for in that law led to
unintended consequences, lawmakers from across the aisle joined me once
again to pass the Homeowner Flood Insurance Affordability Act.
Unfortunately, despite the best efforts of Members from both sides of
the aisle, I cannot support H.R. 2874 because it contains many
provisions that will harm American families and businesses.
First and most importantly, the bill makes flood insurance more
expensive. This bill will punish low and middle class Americans with
increased premiums, surcharges, and reserve fund assessments. In the
wake of a historic hurricane season that devastated so many
communities, it is unconscionable that we are considering a bill that
would make flood insurance less affordable. We should be focussing on
providing additional disaster relief and recovery after these
devastating storms, not punishing these communities with higher
premiums and surcharges.
It is clear that there are those who choose to live near the coast as
a luxury, but there are also those who live in floodplains who are low-
and middle-income families with modest homes, including some
neighborhoods that are predominantly minority. This is because of the
sad history of government-endorsed racism in access to credit and in
neighborhood planning that pushed minorities into the bad parts of
town, which, in some cases, were bad because they were prone to
flooding.
These communities also often lack the resources to make upgrades to
their homes and infrastructure to guard against future flood risk and
are the least able to recover after a flood. The Lower Ninth Ward in
New Orleans is a prime example.
Another example is Greenspoint, a business district in Houston that
was one of the hardest hit by Harvey. One in three residents in
Greenspoint lives below the poverty line. Families in Greenspoint were
still living in water-damaged and moldy units from flooding last year
when they were hit again by Harvey.
[[Page H9227]]
There is no simple answer to our Nation's flooding problems, but I do
know that raising the premiums and racking these up on policyholders
will only hurt families as well as our economy.
Second, the bill makes flood insurance less available by allowing
businesses to opt out of the requirement to purchase flood insurance,
even if they are a high-risk property in a flood zone.
What is more, the bill kicks out certain low-value homes from the
NFIP by prohibiting coverage for any home with claims that, over the
entire history of the property, following enactment, even if it changes
hands, exceed three times the replacement value of the structure.
This provision is so ill-conceived that the American Bankers
Association wrote: ``Cutting off such properties from NFIP coverage
will likely lead to significant hardship for homeowners, lenders, and
communities. As borrowers lose NFIP coverage, and especially if
alternative private coverage is not available or affordable, these
properties will lose value, and the risk of abandonment and/or
foreclosure increases dramatically. In some flood-prone communities,
this could lead to a local or regional foreclosure crisis.''
Third, the bill makes flood insurance less fair for policyholders. In
the wake of this historic hurricane season, it is astounding to me that
the bill does nothing to fund flood maps so that we can better protect
families. Oftentimes, communities are unaware of their true flood risk;
and by not providing any funding for flood maps, building in areas with
no information about flood risk will only continue.
Climate change will only make these storms more frequent, stronger,
and more devastating than ever before, and we must make sure that the
NFIP remains available and affordable to all Americans, not make it
worse.
For all of these reasons, I urge my colleagues to oppose H.R. 2874,
and I reserve the balance of my time.
Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Royce), the chairman of the Foreign Affairs Committee
and respected member of the Financial Services Committee.
Mr. ROYCE of California. Mr. Speaker, I rise in strong support of the
21st Century Flood Reform Act.
I think what Chairman Jeb Hensarling was able to do here, and
Chairman Duffy, is put forward a bill that has really brought together
the Montagues and the Capulets, I mean, when you think about the fact
that, on one hand, you have got the environmental community supporting
this and you have got taxpayers' advocates; you have got conservative
think tanks and you have got affordable housing groups; you have the
reinsurers and you have the insurers.
We talked about two priorities that at least I was pushing to
reauthorize in the National Flood Insurance Program. One of those was
to provide better disclosure to consumers about flood risk. We wanted
them to know. And the second was to decrease the number of repeatedly
flooded properties. This bill accomplishes both of those things.
Section 108 of the bill includes language that I authored, which will
provide information to home buyers about past flood events, about the
damage, about insurance claims, about any obligation they might have to
carry flood insurance; and the National Association of Realtors
supports this commonsense approach.
Section 402 of the bill includes the bipartisan Repeatedly Flooded
Communities Preparation Act, sponsored by Representative Earl
Blumenauer and me. This means that repeatedly flooded properties, which
comprise less than 2 percent of NFIP policies but account for one-third
of all claims, are dealt with.
Responsible, community-driven mitigation is a win-win proposal, one
which will help our neighborhoods become stronger in the face of floods
and address the fiscal footing of the overall program by decreasing the
cost as this is addressed to community level.
Finally, Mr. Speaker, I would particularly like to thank the Pew
Charitable Trusts, their flood-prepared communities initiative, for
their support of our reform efforts.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 3 minutes to
the gentleman from Missouri (Mr. Cleaver), the ranking member of the
Housing and Insurance Subcommittee on the Financial Services Committee.
Mr. CLEAVER. Mr. Speaker, I rise in opposition to H.R. 2874, the 21st
Century Flood Reform Act.
When the Financial Services Committee began the process to
reauthorize the National Flood Insurance Program, I was very hopeful
that we could work across the aisle in a bipartisan manner.
Unfortunately, the bill we see here today is not reflective of that
approach.
Though a number of changes have, in fact, been made to H.R. 2874
since leaving committee, the new provisions still fail to incorporate
many of our priorities for reauthorization or address our concerns with
the NFIP.
Most significantly, Mr. Speaker, in H.R. 2874 is the fact that it
will increase cost for policyholders. The bill raises costs on pre-FIRM
structures from 5 percent to 6.5 percent.
Additionally, the bill will require a $40 surcharge on primary
residences and seeks to increase the reserve fund by charging
policyholders an additional 1 percent every year.
The bill also changes the fee to policyholders who opt to pay their
policy monthly. Many of our constituents who live in flood-prone areas
are not wealthy. These are hardworking Americans who rely on the NFIP
to help offset costs and protect their homes from disastrous flooding.
Instead of working to find ways to truly address affordability within
the NFIP, the bill proposes to set up a voluntary State affordability
program. This proposal then fails to provide States with the
administrative costs to set up a program, a cost that may be far too
burdensome for many already-struggling States.
Even worse, the program would offset discounts for eligible
policyholders by charging policyholders who are not able to take
advantage of the affordability program--yet again increasing costs for
homeowners.
Importantly, H.R. 2874 makes no effort to address the debt. Though
the NFIP had been self-sustaining for many years, extreme unexpected
damage following Hurricane Katrina and Superstorm Sandy left the NFIP
with over $20 billion in debt. Though some of the debt was, in fact,
recently forgiven, the NFIP needed to borrow more from the Treasury
following Hurricanes Harvey, Irma, and Maria.
The NFIP pays over $400 million a year in interest, money that could
go towards making improvements in the program or helping enhance
affordability. We need to wipe the slate clean and give the NFIP a
fresh start.
H.R. 2874 fails to provide additional funding for flood maps, maps
that, in many jurisdictions, are desperately needed if we are going to
have updated maps. This bill also lacks funding for new mapping
technology that could help improve the accuracy of the flood maps.
In conclusion, the short-term reauthorization of the NFIP expires
early next month. I urge my colleagues to vote against this bill and
support a long-term NFIP strategy that promotes affordability,
stability for stakeholders, and necessary funding for mapping and
mitigation.
Mr. HENSARLING. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman
from Missouri (Mr. Luetkemeyer), chairman of the Financial Institutions
and Consumer Credit Subcommittee and one of the coauthors of H.R. 2874.
Mr. LUETKEMEYER. Mr. Speaker, I rise today in support of the 21st
Century Flood Reform Act.
Chairman Hensarling and Chairman Duffy have crafted a great
substitute amendment that will bring about meaningful reform of NFIP
and protect taxpayers and policyholders alike.
The amendment includes H.R. 2246, my Taxpayer Exposure Mitigation Act
of 2017. Included in that bill is a requirement that the FEMA
Administrator purchase reinsurance or a capital market alternative in
an effort to guard taxpayers against losses.
I know of no major insurance company in the private sector that does
not purchase coverage to protect itself against loss of this kind.
These products function well. There is no reason that FEMA should not
be following this best practice as well.
The amendment also grants States and local governments and our
constituents the ability to play a more proactive role in the FEMA
floodplain mapping process.
[[Page H9228]]
I represent the Lake of the Ozarks with its 27,000 pieces of property
along its shoreline, which has dealt with tremendous mapping issues
over the past several years. Hundreds of letters of map amendments were
granted to my constituents, and there were multiple attempts by the
community to engage with FEMA to fix their mapping process, but my
constituents never felt their concerns were taken seriously.
The Lake of the Ozarks is not unique. FEMA processes 25,000 LOMA
letters each year at a cost of $13 million. This should tell all of us
something about the mapping process. Under this bill, areas like the
Lake of the Ozarks would be able to improve the accuracy of the maps
themselves, no longer beholden to Washington, D.C.
This amendment would also create an opt-out from the mandatory
coverage required for commercial properties, allowing banks and
businesses more flexibility to secure flood insurance coverage that
meets an entity's unique risks and needs.
{time} 1530
It is important to note that this legislation does not preclude any
business from securing NFIP policy. Policies will remain available to
all businesses.
Also, this provision should not be misconstrued as a caveat to avoid
the purchase of flood insurance. Businesses operating in flood plains
should have flood insurance, and I am confident that lenders will
insist upon reasonable coverage. I believe this should be a business
decision between the lender and the business customer.
Lastly, this amendment would require FEMA to use actual replacement
cost in determining premium rates for NFIP policies--language
originally included in my H.R. 2565.
Pricing for private policies frequently takes into account the actual
replacement cost of a structure. It makes sense. Any insurance policy
should factor in the amount of money that would be needed to replace a
structure.
FEMA doesn't adhere to this fundamental of insurance. Rather, the
agency effectively uses a fixed national average for insured value and
replacement costs when determining customer premiums.
The result of FEMA's current practice is that lower-income
policyholders subsidize wealthier homeowners.
The substitute amendment we consider today gives FEMA the flexibility
it needs to stop this practice and move toward a replacement cost
pricing structure.
I also want to thank my colleague from Wisconsin for including this
provision in his substitute amendment. I am confident this package will
allow the private sector to flourish and take risk off the backs of
taxpayers while protecting NFIP policyholders.
Mr. Speaker, I urge my colleagues to support the measure.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentlewoman from New York (Mrs. Carolyn B. Maloney), the ranking
member of the Subcommittee on Capital Markets of the Financial Services
Committee.
Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I thank the
gentlewoman for yielding and for her leadership.
Mr. Speaker, I rise today in opposition to H.R. 2874.
There are some good things in this bill, including the Zeldin-Maloney
bill, that would allow policyholders to receive mitigation credit for
elevating boilers and other mechanical systems to higher floors instead
of in easily flooded basements, which is a huge deal for the city of
New York and other big cities.
But there are too many provisions that would make flood insurance in
my district either unavailable or unaffordable. For this reason, the
city of New York opposes this bill.
The bill would raise premiums on homeowners by increasing the floor
on premium increases that Congress just set 3 years ago. Currently,
FEMA has to increase premiums by a minimum of 5 percent per year. Under
this bill, FEMA would have to increase premiums by a minimum of 6.5
percent per year.
When you add up the mandatory increases in premiums required to fund
FEMA's reserve fund and all of the other surcharges in the bill, the
effect would be to significantly increase flood insurance premiums for
homeowners.
Finally, I am concerned about eliminating the noncompete clause for
so-called write-your-own private insurers. This would allow the private
insurers that administer the National Flood Insurance Program to
exploit their access to FEMA's database in order to cherry-pick the
safest properties. This would leave FEMA with only the riskiest
properties, and would undermine the solvency of the National Flood
Insurance Program.
So, while there are many thoughtful good provisions in this bill,
there are too many provisions that would dramatically increase premiums
for my constituents.
Mr. Speaker, I urge a ``no'' vote on this bill.
Mr. HENSARLING. Mr. Speaker, I yield 3 minutes to the gentleman from
Florida (Mr. Ross), the vice chairman of the Housing and Insurance
Subcommittee and the author of the pro-consumer competition title of
the bill.
Mr. ROSS. Mr. Speaker, I thank the chairman for yielding.
Mr. Speaker, I rise in support of the 21st Century Flood Reform Act,
which would give communities in the Tampa Bay area and all of our
constituents a National Flood Insurance Program that serves as a
lifeboat when disaster strikes.
Right now, the NFIP is more like an anchor tied around our neck,
dragging this country deeper and deeper into debt as the waters rise.
With a $1.4 billion annual deficit and debt that continues to grow,
this program desperately needs reform, and H.R. 2874 is our
opportunity.
We should all recognize that the NFIP is not a relief program. It is
an insurance program. It is supposed to insure against losses, which
entails far more than simply paying for damages.
Insurance is not about relief. It is about responsibly managing risk.
Insurance means mitigating risks before disaster strikes, making
investments in resiliency measures, telling people when the risk they
face is simply too great, and providing service that makes people
thankful for choosing your product.
No one knows this better than the professionals in the insurance
industry who work day in and day out to help Americans protect their
lives, their loved ones, and their belongings against all types of
threats--car crashes, earthquakes, and wildfires.
Regrettably, Federal policy has made it extremely difficult for
private insurers to write policies that cover flood risk. We have
created a virtual monopoly for the NFIP at the expense of policyholders
and taxpayers alike, yet we are still $30 billion in debt.
H.R. 2874, which includes my bipartisan Private Flood Insurance
Market Development Act, will allow the private sector to compete to
help homeowners manage thei exposure to floods.
Competition can lower costs, provide more affordable options for
consumers, and reduce the unacceptable number of uninsured homes by
helping people understand their risk.
As it stands now, the NFIP is the worst of all worlds: It is too big
to fail. It is also bound to fail.
With this legislation, we can make substantial progress in turning
around a program that has found itself on the GAO's high-risk list for
the last decade.
Under this bill, consumers will finally have an opportunity to select
among a menu of options a plan that would fit their needs. As a result,
they will be more likely to buy insurance than ever before.
That is not the case today with the NFIP. Our constituents are
severely limited. $250,000 maximum coverage on an NFIP policy. If you
own a business, you are not going to get business interruption
coverage.
What good is the insurance, then?
Thankfully, the private sector is capable of offering more robust
policies that also provide more incentives for property owners to
invest in mitigation and resiliency. Ultimately, this increased
emphasis on mitigation will benefit homeowners and taxpayers alike.
This legislation will help us end the absurd practice of paying to
rebuild a home that has been destroyed by flooding on more than three
occasions.
Further, it strengthens the NFIP by directing FEMA to spread the
NFIP's risk onto the global marketplace.
[[Page H9229]]
This bill also contains more funding for mitigation and recovery than
has ever been authorized by Congress. Over $1 billion will be made
available by this bill to help manage our constituents' exposure to
floods and improve the safety of a home after a catastrophe.
Mr. Speaker, let's support the freedom to insure against obvious
danger that imperils people's homes and their wallets. Let's support
informed decisionmaking.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentlewoman from New York (Ms. Velazquez), the ranking member of
the Small Business Committee and a senior member of the Financial
Services Committee.
Ms. VELAZQUEZ. Mr. Speaker, I thank the gentlewoman for yielding.
Mr. Speaker, I rise in opposition to H.R. 2874.
This bill makes flood insurance more expensive, less available, and
less fair for millions of working families.
This bill all but abandons Hurricane Sandy victims.
Hurricane Sandy made landfall in New York and New Jersey 5 years ago,
causing approximately $60 billion in damage. More than 50 people lost
their lives.
Today--half a decade later--more than 1,000 homeowners still have not
obtained proper resolution of their flood insurance claim.
That is why I have worked for almost 1\1/2\ years on legislation to
improve FEMA's claims processing system and to bring proper oversight
and management to the write-your-own program. While some of my
recommended changes were included in this bill, language was also
included that blows a direct hole in these reforms. This bill requires
policyholders to exhaust all administrative remedies on any disputed
claim before having their day in court.
However, we have already seen that FEMA's administrative system is
broken--and this bill will enable dishonest insurance providers to
continue hiding behind an unreachable threshold--meaning policyholders
will never be made whole.
After more than 5 years, with more than 1,000 families still awaiting
resolution of their Hurricane Sandy claim, we must seek to meaningfully
reform the claims process, not make it harder for families to return to
their home.
A vote for this bill is a vote to abandon Hurricane Sandy victims.
Vote ``no.''
Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from
Pennsylvania (Mr. Rothfus), the vice chairman of our Financial
Institutions and Consumer Credit Subcommittee.
Mr. ROTHFUS. Mr. Speaker, I thank the chairman for yielding.
Mr. Speaker, I rise today to express my support for the 21st Century
Flood Reform Act.
I commend my colleagues on the Financial Services Committee for their
hard work on this important bill, and I urge all Members to support its
passage.
As we all know, this hurricane season brought flooding and
devastation to many parts of the country. Hurricanes Harvey, Irma, and
Maria added even more debt to the National Flood Insurance Program,
leading to a taxpayer bailout of $16 billion. That is $16 billion taken
from the pockets of hardworking Americans. Unless Congress passes the
21st Century Flood Reform Act, we will, once again, have to bail out
this program.
The NFIP, as it currently operates, is structurally unsound. This
bill will help to prevent future bailouts by authorizing the NFIP to
build up its reserves. It will also prioritize mitigation efforts and
encourage the NFIP to engage in actuarially sound practices.
Of course, this effort is not solely focused on taxpayer protection.
Homeowners, too, will benefit from the 21st Century Flood Reform Act.
This bill crucially fosters the development of a private market for
flood insurance. This will provide consumers with better options and
more competitive prices.
My own State's former insurance commissioner testified in front of
our committee last year in support of this idea after seeing benefits
of private sector involvement. Commissioner Miller said:
``In Pennsylvania, competition is proving to be good for consumers. .
. .''
``We are finding in many cases that private carriers are willing to
offer comparable coverage at substantially lower cost than the NFIP.''
Mr. Speaker, this is good for the people of western Pennsylvania and
it is the right policy for homeowners across the country.
I also want to thank Chairman Duffy for incorporating my amendment
concerning Amish communities into the final bill. The Amish and similar
religious communities have a tradition, informed by their religious
obligations, of paying for community losses through mutual aid
societies. My amendment to this bill accommodates those communities.
Mr. Speaker, I urge my colleagues to support this bill.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Georgia (Mr. David Scott), a senior member of the
Financial Services Committee.
Mr. DAVID SCOTT of Georgia. Mr. Speaker, I thank Ranking Member
Waters for yielding.
First, it is very important for us to understand that flooding, Mr.
Speaker, is no longer just a coastal lawmaker's problem. Flooding is
now running rampant in every part of our country.
So I think that every Member on the floor today and every Member of
Congress needs to ask themselves a question, and that is: Are you
really willing to put your name on this bill? Are you really willing to
vote for this bill that will drastically raise premiums on your
constituents without putting the necessary guardrails in place so those
who can't afford the high costs can still buy flood insurance?
Now, one example I am talking about is this, Mr. Speaker--and I want
to make this clear. I hope that there are listeners on C-SPAN who will
tune in. Call your neighbors, call somebody. So you listen to this:
This bill, H.R. 2874, will require policyholders to pay for any
assistance they get when their States create affordability programs.
Here is an example: Mr. Duffy's bill allows for the creation of a
voluntary State-run affordability program. But here is the catch, Mr.
Speaker: there isn't one dime of funding provided in this bill to set
up and implement this program.
Instead, Mr. Duffy's bill says the cost of any discount given to
policyholders will have to be offset by fee increases on other
policyholders within the same State.
Now, Mr. Speaker, this is the Achilles' heel in this flood insurance
business. I can guarantee you that this would have a gravely negative
impact on all of us who are low to middle income.
Mr. Speaker, I made it clear to Mr. Jeb Hensarling, our distinguished
chairman; and to Mr. Duffy that we are willing to walk across party
lines.
The SPEAKER pro tempore. The time of the gentleman has expired.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional
30 seconds to the gentleman.
Mr. DAVID SCOTT of Georgia. But we offered this, as the ranking
member said, as an excellent opportunity. This summer, we spent week
after week on this bill so that we could move this bill forward in a
way that would address affordability, which was a major concern of
mine, of the ranking member's, and those of us on our side of the
aisle.
{time} 1545
There is no affordability in here. It is very important for us to
point out that this plan will put an overburden on the States, and then
they have to pass it on in fees to the others.
Unfortunately, it is a terrible bill. I urge my colleagues to vote
``no.''
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Arkansas (Mr. Hill), a member of the Financial Services Committee.
Mr. HILL. Mr. Speaker, I thank my chairman.
Mr. Speaker, I rise in strong support of this bill sponsored by my
friend, Representative Sean Duffy.
He has worked tirelessly in crafting a solution here, along with
Representative Luetkemeyer, Representative Ross, and our full committee
chairman, Mr. Hensarling.
While the National Flood Insurance Program provides needed insurance
coverage, it has numerous problems as currently constructed, and the
21st Century Flood Reform Act seeks to implement much-needed reforms in
this program.
[[Page H9230]]
In addition to reauthorizing the flood program for 5 years, this bill
provides increased transparency to the public, provides more
information to people living in harm's way about past damages and the
risk of flooding, ensures mapping is timely and accurate, ties rates to
risk, gives consumers greater choice in flood insurance options, and
incentivizes mitigation and risk reduction.
Currently, in Arkansas, we have one private insurer that offers flood
insurance. A second underwriter is near approval by our Insurance
Commissioner Allen Kerr.
The benefits to the consumer through private insurance are
significant, as noted by the Milliman study.
For example, one private insurer in Arkansas covers up to $2 million
in coverage per occurrence, Mr. Speaker, as opposed to the NFIP, which
limits coverage to $250,000, across all rating categories at premiums
substantially below the NFIP.
Further, this private insurer can offer replacement value,
reimbursement for living expenses if an individual or family is
displaced by a flood. The NFIP does not.
For almost 50 years, the experiment in government-provided flood
insurance has proven to be ineffective, inefficient, and indisputably
costly to hardworking taxpayers. The time for action is now.
Mr. Speaker, I include in the Record USA Today, Washington Post,
Washington Times, and Chicago Tribune articles.
[From the USA Today, Sept. 7, 2017]
Make Flood Insurance Reflect Actual Risk
after hurricanes, taxpayers can't absorb ever increasing tabs: Our view
In 1968, in the wake of Hurricane Betsy, Congress decided
it had enough. Flooding was destroying too many homes,
leaving financial and physical devastation in its wake.
So lawmakers created the National Flood Insurance Program,
a government-run insurance fund for homeowners in flood-prone
areas.
And that's when things got really bad.
The NFIP has been losing money ever since. The program is
nearly $25 billion in the red and is running annual deficits
in the range of $1.4 billion. That's because it's a creation
of Congress and therefore sets its premiums according to what
is politically convenient rather than what is actuarially
sound.
With Hurricane Harvey devastating the Houston area, and
Hurricane Irma bearing down on the Southeast coast, the
program is certain to take a massive loss this year.
What's worse, the NFIP's woes are self-generating. Because
the premiums are well below what should be charged, this
effectively subsidizes construction in flood-prone areas. And
that means its losses grow as more flood-prone land is
developed.
Hurricane Katrina, which ravaged the Gulf Coast in 2005,
exposed just how costly and counterproductive the program had
become. In 2012, after years of debate, Congress enacted a
law that made flood insurance rates more reflective of actual
risks and expanded the areas considered flood-prone.
This generated Category 3 blowback from homeowners and the
real estate lobby, and in 2014 Congress passed another law
undoing much of the first.
Now, with catastrophic losses mounting and sea levels
rising, it's time to revisit the issue.
Making federal flood insurance more reflective of reality
would only go so far in dealing with the problem of building
in flood-prone areas. That's because many homeowners don't
have flood insurance and because much of the damage that the
government eventually pays for is not covered by the program.
(Private insurance typically covers damage from wind but not
water.)
With Katrina, for instance, the flood insurance payout was
$16.3 billion. But Congress passed supplementary spending of
more than $100 billion to provide intensive relief and
temporary housing, as well as fix broken levies.
With Harvey and Irma, the federal tab beyond of flood
insurance is likely to be even higher. Only an estimated 20%
of homeowners in the area affected by Harvey even bothered
with flood insurance, a number that has been dropping in
recent years. But making flood insurance reflect actual risks
is a vital first step in coming to grips with reality.
In the past several decades, Americans have flocked to
coastal communities, many of them in parts of the country
prone to hurricanes. With the hit to taxpayers growing and
the danger increasing, restraint--even some reversal--of this
trend is needed.
While people in the hurricane zones deserve disaster
assistance and the nation's sympathy, taxpayers can't simply
absorb ever increasing tabs for flood losses. The government
needs policies that encourage people to build their homes in
safer places. Harvey and Irma are just the latest sobering
wake-up calls with that message.
____
[From the Washington Post, Aug. 30, 2017]
After Harvey, Flood Insurance Needs Reform
Congress must be generous in helping to repair the damage,
to lives and to property, from Hurricane Harvey. The full
extent of the destruction may not be known for a long time
but is evidently catastrophic, just as the damage wrought by
Katrina and Sandy was. Even as they demonstrate that they
have a heart, lawmakers must also show that they have some
brains. Specifically, the United States is long overdue for
smart reforms to one of the major government institutions
designed to help people cope with the risk of natural
disaster: the National Flood Insurance Program (NFIP), which
has underwritten a total of 5 million policies providing
homeowners and some businesses $1.2 trillion in coverage.
Now almost half a century old, the NFIP grew out of what
was, at the time, a basic reality of the insurance business:
Flooding risks were actuarially imponderable, so insuring
against them was uneconomic for the private sector,
especially in places such as the hurricane-prone Gulf of
Mexico. To fill the gap, the federal government offered
coverage on two conditions: that local communities would take
appropriate land-use and other measures to prevent
development in risky low-lying areas; and that homeowners
would pay actuarially sound premiums.
Elegant in theory, the plan gradually succumbed to real
estate interests, with the result that flood insurance
enabled rather than managed development along coasts and in
other flood-prone areas--ultimately putting more people and
property at risk than might otherwise have been the case. As
it happens, well-to-do people benefit disproportionately from
this program; they're the ones who tend to build big houses
on the beach. The NFIP has spent many millions of dollars to
repair properties that have been repeatedly flooded.
Prior to Katrina, the NFIP was nevertheless generally able
to pay for coverage through the premiums it collected.
Massive losses from that storm and Sandy, however, have
driven it into de facto bankruptcy; the program has been
forced to borrow more than $24 billion from the treasury to
pay claims, a debt that was nearly unpayable even before
Harvey hit. At the moment, the program has $1.7 billion on
hand, plus $5.8 billion left on its line of credit with the
Treasury--and some 373,000 policyholders in the Harvey flood
zone who will expect to get paid.
Coincidentally, the program is due for reauthorization on
Sept. 30. Ideally, this deadline would galvanize Congress to
ensure enough money is available to pay current commitments,
while reforming NFIP for the future. What's needed are
tougher flood-risk mitigation requirements, more realistic
premiums and encouragement for private-sector involvement in
the business, based on modern technology that may enable
insurance companies to underwrite risks they could not have
underwritten in the 1960s.
Recent history, alas, doesn't make us optimistic: Congress
did reform the program on a bipartisan basis in 2012, only to
see much of that undone under pressure from coastal-state
lawmakers in 2014, after Sandy. ``There is a tide in the
affairs of men, which taken at the flood, leads on to
fortune,'' Shakespeare wrote. Congress, though, tends to go
with the political flow.
____
[From the Washington Times, Sept. 6, 2017]
Fixing Flood Insurance in Harvey's Wake
private insurers could help in matching cost and risk
Hurricane Harvey took the most devastating flooding in the
city's history to Houston, and the cost of repairing the
damage will be astronomical. Sadly, the federal flood
insurance program is already underwater and Harvey will only
add to the flood of red ink. It's clear that Congress must
reform the program so the premiums property owners pay more
closely reflect the flood risk. Until that happens, nature's
frequent fury will continue to undermine the finances of
everyone.
With the angry water from the Category 4 hurricane damaging
200,000 Houston-area homes and business firms, early
estimates place the cost of restoration as high as $190
billion. That would eclipse the $108 billion loss in the 2005
Hurricane Katrina and Superstorm Sandy in 2012. President
Trump expects Congress to quickly approve a $7.9 billion down
payment for emergency relief.
The National Flood Insurance Program, designed to wield the
financial muscle of the federal government to protect flood-
prone property, has proved to be a money sieve. It covers
about 5 million flood-prone properties nationwide, worth
about $1.2 trillion, and collects about $3.5 billion annually
in premiums. The program was $25 billion in the red before
Harvey hit--a clear indicator that overall, property owners
who are required to carry flood insurance are not paying for
the risk.
Among the existing program's shortcomings are its policy of
grandfathering older structures built in low-lying regions
before accurate floodplain mapping began, encouraging owners
to renovate rather than demolish. Between 1978 and 2004,
these risky properties comprised 1 percent of the program's
insured properties but accounted for 38 percent of the damage
claims, according to the Government Accountability Office.
The federal program is subsidizing insurance
[[Page H9231]]
for expensive waterfront property along the Southeastern
coastline, favoring the wealthiest homeowners.
Congress has made several attempts to put the insurance on
a sustainable financial footing, without success. The program
will expire at the end of this month, which offers
legislators an opportunity to resolve the unintended
consequences of the program.
Several constructive bills were reported out of the House
Financial Services Committee in June. Among the proposals are
provisions giving more leeway to private insurers who
currently offer only federally approved policies. Doing so
would allow insurers to set premiums tailored to individual
properties, resulting in a closer match of insurance cost and
flood risk. Other provisions would limit claim payments for
repeatedly flooded properties and require the use of
replacement cost in setting insurance rates.
The House is seeking a five-year reauthorization of the
National Flood Insurance Program and the Senate version calls
for a 10-year term to ensure continuity. Both versions back
provisions to allow a gradual increase of private-sector
involvement in flood insurance. It's an idea endorsed by the
free-market Cato Institute, which says ``the ideal `reform'
to the [program] would be to fully privatize flood insurance.
That would be more likely to fix the system in a way that
would limit the long-run government liability than any
alternative legislative approach.'' Allowing private insurers
to have a larger role in future flood protection is sensible.
No one could have foreseen the once-in-a-lifetime deluge
that swamped Houston, but actuaries make their bones
calculating risk, including in their calculations such
unpredictable natural disasters as tornadoes and earthquakes.
Insurance premiums undistorted by Washington rules would give
consumers a clearer picture of flood hazards, helping them
avoid the mistake of building in the path of storms like
Hurricane Harvey. With monster storm Irma bearing down on
Florida, the need is urgent for Congress to safeguard
Americans from future property loss and new heartbreak.
____
[From the Chicago Tribune, Sept. 7, 2017]
The Folly of Paying Americans To Live in Harm's Way
In the aftermath of Hurricane Harvey's hit on Texas, and
with Hurricane Irma threatening Florida, let's all
acknowledge one reason for the vulnerability of Americans who
live in low-lying coastal regions of the Sun Belt: The
federal government has been paying people to locate there.
Not explicitly, of course. But an abundance of inexpensive
housing is a big attraction. And a big factor in the low cost
of housing in the Houston area is that developers are free to
build almost anywhere, including marshy, low-lying areas
where land is cheap.
The chance of being swamped deters some people, but the
government offers flood insurance to pay for repairing and
rebuilding. The owners of a Houston home that flooded 16
times in 18 years got more than $800,000 in payments--for a
house worth just $115,000.
The folly of the government's flood insurance program has
been evident for decades, and some Midwestern communities
have been in on the action. We've written about how federal
flood insurance has serially benefited many of those who
refuse to move from river flood plains, sometimes to a fault.
After the Mississippi River flood of 1993, one Grafton, Ill.,
resident explained to a reporter that he had collected
$24,000 in federal insurance for damage to his small house
from floods in 1979, 1982, 1986 and 1992. For '93, he
expected an additional $32,000. His total insurance premiums
since buying the house in 1975: $6,000.
Houston, according to a new study by the National Wildlife
Federation, accounts for more than half of all the properties
that are flooded and paid for over and over. It has ``managed
to host three `500-year floods' in the past three years,''
notes Michael Grunwald of Politico. Each one costs taxpayers
large sums. Yet development in these precarious spots
continues apace.
``Why are we writing flood insurance (policies) for new
construction in flood zones?'' asks Craig Fugate, who headed
the Federal Emergency Management Agency in the Obama
administration. ``Think about it: If you're going to build a
new structure in the flood zone, the private sector can
insure it. And if they can't insure it, then why is the
public subsidizing the risk?''
It's a big subsidy. Thanks to past storms, the flood
insurance program has a $25 billion deficit. The
Congressional Budget Office found that coastal counties at
risk from tropical storms make up just 10 percent of all the
counties with federal flood insurance policies--but generate
75 percent of the claims and most of the deficit.
So why is the public subsidizing the risk in these places?
Because the people living there, the politicians they elect,
the businesses they patronize and various interest groups
(such as homebuilders and the real estate industry) have
strong stakes in preserving this program. They've been able
to prevent the sort of reforms needed to make it actuarially
sounder and closer to self-sustaining.
In 2012, Congress passed a modest package of sensible
changes that would have raised costs to the flood-prone. But
two years later, feeling the political heat, lawmakers
backtracked.
Homeowners located in areas that are expected to flood
every 100 years are required to buy flood insurance if they
want federally insured mortgages. But they pay rates far
lower than the risks warrant.
That gap deprives builders of incentives to stay out of
low-lying areas that are vulnerable to flooding--or to
elevate structures to keep them dry when the waters rise. It
also promotes the destruction of wetlands that could reduce
flooding. Oh, and it helps to tilt migration toward
vulnerable coastal regions like those of Texas and Florida.
____
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Texas (Mr. Al Green), the ranking member of the
Oversight and Investigations Subcommittee on the Financial Services
Committee.
Mr. AL GREEN of Texas. Mr. Speaker, I thank the ranking member, and I
thank the chair of the committee as well.
Mr. Speaker, I am opposed to the legislation. I am opposed to it
because it does not give hardworking Americans the same consideration
that we will accord persons who are making billions and we will accord
corporations.
Corporations are going to get great tax cuts, billionaires are going
to get tax cuts. We will eliminate the estate tax, we will eliminate
the AMT for billionaires, but we are not going to give hardworking
Americans the opportunity to get the relief that they need with
reference to the $20 billion worth of debt that the NFIP currently has.
If we don't eliminate that debt now, premiums will go up on
hardworking Americans. Hardworking Americans won't be able to afford
premiums, and many of them won't be able to afford homes. This is not
the way to treat people who work hard and pay their taxes.
If we can give tax breaks to corporations and billionaires, we can
afford to reduce this debt on the NFIP so that hardworking Americans
can afford homes. It really is that simple.
Five years without another bill: this is our last chance. We can't
pass this chance up so that we can take care of billionaires and
corporations at the expense of hardworking Americans.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Minnesota (Mr. Emmer), a hardworking member of the Financial
Services Committee.
Mr. EMMER. Mr. Speaker, I rise in support of the 21st Century Flood
Reform Act, which will reauthorize and reform our National Flood
Insurance Program.
The NFIP provides important relief. Millions of Americans rely on
this program to provide coverage when disaster strikes. The nearly 50-
year-old NFIP program, however, is in desperate need of reform.
Today's legislation will not only reauthorize the program for 5
years, it will take steps to better align premium rates to risk,
improve FEMA's mapping and appeals process, and begin to correct the
way the NFIP manages what are known as repetitive loss properties.
Most importantly, H.R. 2874 lays the groundwork for a private flood
insurance marketplace to take hold, which will improve the fiscal
stability and solvency of the NFIP for future generations to come. This
bill is a good start, but these reforms must continue to be built upon
in the years ahead.
I am thankful for the hard work of Chairman Hensarling, Housing and
Insurance Subcommittee Chairman Duffy, and the entire Financial
Services Committee staff for working to get this bill to the floor
today.
As many continue to rebuild their lives following the devastation of
Harvey, Irma, Sandy, and others, we need a National Flood Insurance
Program that stimulates choice and encourages proactive behaviors to
better protect our citizens.
Mr. Speaker, again, this legislation is a good start. I encourage all
of my colleagues to support this bill.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Florida (Mr. Crist), a leading voice on flood
insurance and climate issues and a member of the Financial Services
Committee.
Mr. CRIST. Mr. Speaker, I want to thank the ranking member for her
leadership.
Mr. Speaker, I rise today in strong opposition to this bill. We must
get flood insurance right, and that starts with affordability. If
families can't afford insurance, they simply will not buy it.
[[Page H9232]]
In my home State of Florida, the number of NFIP policies has dropped
15 percent since 2012, when Congress started raising premiums. If you
don't think the government should be involved in flood insurance, maybe
that is good news, maybe that is the goal here, but not for the good of
the taxpayer, when families who can't afford coverage must turn to FEMA
after a disaster.
The bottom line is that unaffordable insurance will fail. This bill
makes flood insurance less affordable, hiking premiums, surcharges, as
well as fees. Beyond that, this bill would decrease access to coverage
for vulnerable families, forcing them into a private market that does
not exist.
Yes, we absolutely need 21st century flood reform. Our climate is
changing, sea levels are rising, floods are getting worse, and sticking
our heads in the sand will only make solutions that much more
difficult.
This bill leaves behind the best reform ideas from both political
parties, like better mapping, as well as mitigation.
Those who have lived through natural disasters know you can't stop
the catastrophic force of Mother Nature, but you can prepare.
I urge my colleagues to reject this ideological exercise and put
people over politics. Let us come together and pass real, sustainable
reform for a strong, affordable National Flood Insurance Program.
Mr. Speaker, I include letters of opposition in the Record from the
Pinellas County Board of County Commissioners and the City of
Clearwater.
Pinellas County,
Board of County Commissioners,
Clearwater, FL, November 8, 2017.
Hon. Charlie Crist,
House of Representatives, Washington, DC.
Dear Charlie: On behalf of Pinellas County, Florida, we
urge you to oppose the 21st Century Flood Reform Act, H.R.
2874. This bill, which is the compilation of the seven-bill
package approved by the House Financial Services Committee
this summer, is detrimental to Pinellas County residents and
local governments. Despite the minor changes proposed in the
amendment, the bill will increase costs for National Flood
Insurance Program (NFIP) policyholders, create unfunded
mandates by increasing regulatory burdens and
responsibilities for local governments, and lead to fewer
participants in the NFIP, which will undermine the integrity
of the program. We strongly urge you to oppose the bill.
The bill would increase premiums on homes built prior to
the first flood map by a minimum of 6.5% each year, with
properties that have made two or more claims subject to even
higher rate increases. In addition to this increase, all
policy holders would be assessed new and increased fees and
surcharges with some of these fees, such as the reserve fund
fee, increasing each year. As these increased costs are
passed on to policyholders, the bill acknowledges that an
affordability assistance program is needed, however it
delegates that authority to states and requires it to be
financed through additional charges on the other
policyholders in the state, creating an even greater
financial burden. These increased costs along with the new
restrictions in the bill on types of properties that can
obtain coverage through the NFIP will undermine participation
in the program, further destabilizing it. The bill does
nothing to invest in new flood mapping and technology, which
would result in more accurate maps and does not sufficiently
invest in mitigation. We ask for your continued assistance in
ensuring that this bill does not become law.
Additionally, we want to thank you for cosponsoring H.R.
3285, the Sustainable, Affordable, Fair and Efficient (SAFE)
NFIP Act. The legislation is significantly more consumer-
friendly than the House Financial Services Committee
approach. The SAFE NFIP Act includes provisions to limit
premium rate increases, create means-tested mitigation and
affordability provisions, expand the Increased Cost of
Compliance program, develop accurate flood maps, and
emphasize pre-disaster mitigation programs.
Again, thank you for your continued assistance in ensuring
that legislative efforts detrimental to Pinellas County's
over 130,000 policyholders are not enacted into law. We value
your support and thank you for cosponsoring H.R. 3285. Please
do not hesitate to contact me if I can provide additional
information or answer questions.
Sincerely,
Janet C. Long,
Chair, Pinellas County Commission.
____
City of Clearwater,
Clearwater, FL, November 7, 2017.
Hon. Charlie Crist,
House of Representatives,
Washington, DC.
Dear Representative Crist: On behalf of the City of
Clearwater, Florida, we urge you to oppose the 21st Century
Flood Reform Act, H.R. 2874. This bill, which is the
compilation of the seven-bill package approved by the House
Financial Services Committee this summer, is detrimental to
Clearwater residents and to Florida local governments.
Despite the minor changes proposed in the amendment, the bill
will increase costs for National Flood Insurance Program
(NFIP) policyholders, create unfunded mandates by increasing
regulatory burdens and responsibilities for local
governments, and lead to fewer participants in the NFIP,
which will undermine the integrity of the program. We
strongly urge you to oppose the bill.
The bill would increase premiums on homes built prior to
the first flood map by a minimum of 6.5% each year, with
properties that have made two or more claims subject to even
higher rate increases. In addition to this increase, all
policy holders would be assessed new and increased fees and
surcharges with some of these fees, such as the reserve fund
fee, increasing each year. As these increased costs are
passed on to policyholders, the bill acknowledges that an
affordability assistance program is needed, however it
delegates that authority to states and requires it to be
financed through additional charges on the other
policyholders in the state, creating an even greater
financial burden. These increased costs along with the new
restrictions in the bill on types of properties that can
obtain coverage through the NFIP will undermine participation
in the program, further destabilizing it. The bill does
nothing to invest in new flood mapping and technology, which
would result in more accurate maps and does not sufficiently
invest in mitigation. We ask for your continued assistance in
ensuring that this bill does not become law.
Additionally, we want to thank you for cosponsoring H.R.
3285, the Sustainable, Affordable, Fare and Efficient (SAFE)
NFIP Act. The legislation is significantly more consumer-
friendly than the House Financial Services Committee
approach. The SAFE NFIP Act includes provisions to limit
premium rate increases, create means-tested mitigation and
affordability provisions, expand the Increased Cost of
Compliance program, develop accurate flood maps, and
emphasize pre-disaster mitigation programs.
Again, thank you for your continued assistance in ensuring
that legislative efforts detrimental to Clearwater's over
11,000 policyholders are not enacted into law. We value your
support and thank you for cosponsoring H.R. 3285. Please do
not hesitate to contact the city should you need additional
information, and with warm, personal regards, I am
Sincerely,
George N. Cretekos.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from New York (Mr. Zeldin), a member of the Financial Services
Committee.
Mr. ZELDIN. Mr. Speaker, I rise in strong support of this
legislation, which contains critical reforms that protect access to
affordable insurance, improves the way policyholders are treated when
filing a claim, and places the National Flood Insurance Program on the
path towards fiscal solvency.
Included in this legislation is the bipartisan bill I introduced with
Congresswoman Carolyn Maloney that provides a credit to NFIP
policyholders who reduce their flood risk through mitigation.
Homeowners who do the right thing and invest in mitigation activities
deserve a strong return on their investment in the form of lower NFIP
premiums.
On Long Island, where the coastal economy is our main economy,
protecting life and property from flood damage is a top priority.
I look forward to working with all my colleagues in Congress to get
this bill passed in the Senate and sent to the President's desk without
delay.
I am proud to be a cosponsor of this essential legislation, grateful
for Chairman Hensarling's and Chairman Duffy's leadership on this
issue, and I urge all of my colleagues to vote ``yes.''
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Louisiana (Mr. Richmond), the chair of the
Congressional Black Caucus and a long time leader on flood insurance
issues.
Mr. RICHMOND. Mr. Speaker, I want to thank Congresswoman Waters, the
ranking member. Oftentimes in this body, we talk about leadership.
Leadership is what Congresswoman Waters did after Hurricanes Katrina
and Rita; but, more importantly, 4 years ago, when the threat of new
flood policies were going to make people pay the cost of their home
every 5 years, we were talking about paying 20 percent of the value of
your home in flood insurance every year, she came down to Louisiana and
met with Louisiana citizens. She didn't come to the urban areas,
although she passed through, but she went to the rural areas, talked to
middle-income families to figure out how flood insurance reform would
hurt them.
[[Page H9233]]
What she found out is that it was going to cause more families to
just turn in the keys to their house and give their homes back to the
mortgage company or declare bankruptcy so that they can just get by.
This bill is a lot better than the bill that was in committee, and I
want to thank the chairman and my colleagues from Louisiana, Mr.
Scalise and Mr. Graves, for making it a better bill. But when we are
talking about homeowners, the most responsible people in society who
have now purchased their piece of the American Dream, when you have
people who played by the rules, bought the home of their dreams, you
don't change the rules halfway to say: Hey, we know this was the rule
when you bought the House, but now it has changed, and all of a sudden
that $500 in insurance you pay a month is now $1,500.
That is not responsible, it is not fair, and we are picking on
homeowners.
I would just say to my friends on the other side of the aisle that
the bill is better, but it is not worthy of the American taxpayer or
the American homeowner.
We keep talking about the private market. They are going to pick and
choose where they want to insure, and then, all of a sudden, you are
left with a high-risk pool, where homeowners who work every day are
stuck with costs that they just can't afford.
I would simply say that this is something we really could do, in this
atmosphere, in a bipartisan way, because it is the right thing to do.
With all the good things in the bill, the problems--the bad outweighs
the good.
I would just remind my friends on the other side of the aisle, the
community that you save may be your own.
Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from
Louisiana (Mr. Scalise), the majority whip, who has a slightly
different message.
Mr. SCALISE. Mr. Speaker, I thank my colleague from Texas, Chairman
Hensarling, for yielding.
Mr. Speaker, I rise in support of this bill that, really, if you look
at what we are trying to achieve here, it is a few things, but the main
two things are to give further reforms and protections to the taxpayers
of this country while also making sure that we are protecting and
giving certainty to the policyholders of the National Flood Insurance
Program; the fact that this is a 5-year reauthorization; the fact that
we were able to protect the grandfathering provisions that are so
important to families who have played by the rules, and if the rules
are going to change, it is not fair that you would hold something
against somebody that was legal in the past; the fact that this bill
has important reforms, like Ross-Castor.
We all talk about the fact that NFIP is the only place for most
families to go that want to buy flood insurance. We need to develop a
private marketplace, Mr. Speaker, and, frankly, for most families, it
just doesn't exist. Those Ross-Castor provisions are so important to
finally help jump start that process.
This program has had its own financial difficulties, and this bill
helps strengthen the program, helps give some certainty, and, frankly,
it gives some provisions in the bill that are going to make it better
for families who rely on this program, and the taxpayers of this
country, who help make sure that we have a stable economy.
It is important for homeownership, it is important that we maintain
those provisions on grandfathering that were so important to our
communities, and it is important that we pass this bill.
I am glad that the House is taking this action today.
Mr. Speaker, again, I commend Chairman Hensarling and Congressman
Duffy for their hard work, and all the other Members who played such an
important role in getting us to this point.
{time} 1600
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 3 minutes to
the gentleman from New Jersey (Mr. LoBiondo), a senior member of the
Transportation and Infrastructure Committee, and someone who has been
working hard to try and have a bipartisan effort on this bill.
Mr. LoBIONDO. Mr. Speaker, I thank my colleagues, Ms. Waters, Mr.
Hensarling, and Mr. Duffy, for their work on this bill, and especially
to my good friend, Steve Scalise.
I know there was an effort to do this the right way, but I rise in
opposition for a couple of reasons. First, I am disappointed. I am
disappointed because we, in this body, had an opportunity to have a
bipartisan bill that would have probably generated more than 400 votes,
that we would have had a big high-five moment, and we could have moved
forward. The Senate would have taken it. The President would have taken
it.
But now we have a situation that makes me angry--angry because we are
picking winners and losers, angry because the misery index for some
Members is more important than the misery index in my district or the
Northeast.
Five years ago, we were about a month after Superstorm Sandy. We had
political hand-to-hand combat to get what the rest of the Nation has
gotten almost automatically with every natural disaster in the whole
course of our Nation's history. But no, Superstorm Sandy, there had to
be an offset. We barely got the help we needed.
This is all tied in together because we still have people suffering
in New Jersey and New York and the Northeast from the aftermath of
Sandy, and it is tied into this with Federal flood insurance. It is
critically important.
And why should it be that the concerns of my district and the people
who I represent have any less of an influence on what happens here?
I am angry, and I am disappointed that I have to fight with my own
party on these issues. I am not at all sorry to stand up as strongly as
I can for the constituents who deserve this--hardworking people who are
trying to stay in their homes.
I know the program has problems. I know we have to do this in a
different way, and we have had an opportunity to do it in a bipartisan
way, where all of our constituents should have been helped, instead of
picking winners and losers.
I am sick and tired of having to defend the people in my district and
the people in the Northeast from policies that don't mean the right
thing for us.
Please do the right thing; vote ``no.'' Let's come back with a bill
that makes sense.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Georgia (Mr. Loudermilk), another respected member of our
committee.
Mr. LOUDERMILK. Mr. Speaker, I also want to thank Chairman Hensarling
and Chairman Duffy for their tireless work on this bill. They have
labored endless hours to bring this bill to the floor, and we are very
appreciative of that.
Mr. Speaker, the fact that we are here today shows that our
legislative process is working and that we are doing the challenging
work the American people sent us here to do, work that isn't always
easy. Quite often, it is hard, but it is the right thing to do.
After months of hard work, the Financial Services Committee passed a
package of bills in June to reform and reauthorize the National Flood
Insurance Program.
Mr. Speaker, many of these bills in that package passed with
unanimous support. You only have unanimous support with strong
bipartisan support.
Now, after lengthy negotiations, we are taking up this compromise
bill that will significantly improve the NFIP and protect America's
taxpayers. The 21st Century Flood Reform Act will make major strides to
grow the private flood insurance market and start to put the NFIP on a
fiscally sustainable path.
This bill will also implement flood mapping improvements and increase
transparency and disclosure so policyholders will know the true risk of
floods at their property.
The bill also includes an amendment that I introduced with my good
colleague and dear friend from Georgia, Representative David Scott. The
NFIP is far too complicated for policyholders, insurers, and mortgage
lenders, so this amendment, which passed with unanimous support, calls
for a GAO study on how the program may be simplified and streamlined.
The NFIP authorization expires on December 8, so I would urge my
colleagues to join me in supporting this worthy program.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1 minute to the
[[Page H9234]]
gentleman from New York (Mr. King), a senior member of the Financial
Services Committee who has worked a long time for bipartisanship on
reauthorization of the National Flood Insurance Program.
Mr. KING of New York. Mr. Speaker, I thank the gentlewoman for
yielding, and I appreciate her courtesy. I did ask my side for time.
Unfortunately, they had no time available, so I thank the gentlewoman
for coming to my rescue on this.
I feel very strongly about this, and I echo the comments of Mr.
LoBiondo. The premium increase here can have a devastating impact on my
constituents. Without grandfathering, we would see premiums skyrocket.
And when Mr. LoBiondo and I tried to ameliorate this by suggesting a
compromise by putting a $5,000 cap on premiums, we were rejected.
When Mr. LoBiondo talked about a bias against the Northeast, that
bias continues today from Sandy. Louisiana, Texas, Florida, Puerto Rico
all received tax relief following their storms. To this day, voters in
my district have not received that tax relief; and Mr. LoBiondo's
district is the same.
So I am also tired of this regional bias. We, in the Northeast, get
treated--whether it is on taxes, or whatever it is, we do not get a
fair shake. Maybe they don't need our votes.
Well, you are not getting my vote today. I urge Members to vote in
opposition.
Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from New Jersey (Mr. MacArthur), a very hardworking member of the
Financial Services Committee.
Mr. MacARTHUR. Mr. Speaker, I also am from the Northeast, from New
Jersey, and I rise in support of this bill today.
Five years ago, Superstorm Sandy devastated my district. Ocean
County, my home, was the epicenter of that storm. You might remember
the photographs of the iconic Jet Star roller coaster sitting in the
ocean. That was my district.
Even today, I have thousands of constituents who are still out of
their homes. Now, thousands more are experiencing the same thing
because of Hurricanes Harvey, Irma, and Maria.
140 million Americans live in coastal counties, and the NFIP has done
a lot to help with zoning standards, building standards, flood plain
management standards. It hasn't been run perfectly, but this program is
desperately needed by people in areas like mine.
The NFIP has fiscal issues, and this bill seeks to address them. It
is the only Federal disaster program that actually collects money in
advance of a disaster.
When I got on this committee a year ago, I set out on this issue to
do four things: a long-term reauthorization, improve affordability,
increase accountability, and enhance mitigation efforts.
This is a 5-year reauthorization. It reduces the mandatory annual cap
on premium increases; it brings more accountability, including my
language to forbid NFIP from hiring disbarred lawyers; and it doubles
the mitigation coverage from $30,000 to $60,000.
I urge my colleagues to support this bill.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Massachusetts (Mr. Capuano), a senior member of the
Committee on Financial Services and a strong progressive leader.
Mr. CAPUANO. Mr. Speaker, I don't even know if I need 2 minutes.
Look, this bill has some good things in it. Everybody admits that. It
does. Like every bill I have ever voted on, there is some good, there
is some bad. But this bill has more bad in it than good.
It has some good philosophy that I won't agree with the details. I
agree we should do something about repetitive loss properties. I think
everybody agrees with that, but not the draconian measures taken in
this bill.
We all agree that we need to help make it a stable fiscal platform,
but not what this bill does. That is the problem here. This is not a--I
have seen worse bills. As a matter of fact, I have seen worse flood
insurance bills, so this, I will have to admit, is an improvement over
the last horrendous flood insurance bill. But it is not even close yet.
And the problem here, this is a missed opportunity. Flood insurance
doesn't need to be partisan. It doesn't need to be based on
philosophical purity. This is a necessity to many Americans, many
middle class Americans, and there is no doubt, without winning or
losing any votes at home, we could work this out if the majority wanted
to. But you don't.
You don't want any Democratic votes. Apparently, you don't want all
the Republican votes. Why? I don't know. Maybe lighting candles at the
altar of certain philosophies.
When this bill--not if--when this bill fails in the Senate, you are
going to find a lot of people over this side who continue to want to
work with you to come up with a bill we can all embrace. I know that
will happen, and I look forward to that day.
This bill isn't it, and everybody here knows it.
Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from
Oregon (Mr. Blumenauer), a senior Democrat and leader on environmental
issues in the House.
Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy in
yielding me this time.
I have enjoyed listening to the debate back and forth. There is no
area in Congress that I have spent more time on, over the course of the
last 20 years, than dealing with flood insurance. I was the author of
the last major piece with our former colleague, Doug Bereuter. I agree
with much of what was said on both sides.
There are remaining significant problems. Insurance is not priced
properly. It is not that it is too expensive or it is too cheap, it is
not priced properly. We have some winners and losers now, but too many
people are subsidized by the majority.
We are not doing all that we can. The Federal Government ends up
holding the bag for billions of dollars for unnecessary flood damage
with storm after storm after storm; and, by the way, there are more on
the way.
It doesn't have to be this way. Part of the problem is that because,
inevitably, when we talk about reform, it costs money, and there are
some people who end up paying more. It is easy not to update the maps.
It is easy not to have people pay actuarial rates. It is easy not to
force local governments to do their job and not allow building in
harm's way.
I strongly agree that, in times past, low-income and minority people
were subjected to real problems and more flooding than they should have
been. But now is the time to try and pivot and do something about it.
Mr. Speaker, I include in the Record a list of groups that are
supporting this legislation.
National Association of REALTORS (NAR), National
Association of Home Builders (NAHB), Property and Casualty
Insurers Association of America (PCI), American Insurance
Association (AIA), Reinsurance Association of America (RAA),
Council of Insurance Agents and Brokers (CIAB), National
Association of Federally-Insured Credit Unions (NAFCU),
Financial Services Roundtable (FSR), Mortgage Bankers
Association (MBA), American Land Title Association (ALTA),
The SmarterSafer Coalition, National Wildlife Federation
(NWF), National Multifamily Housing Council (NMHC), National
Apartment Association (NAA), Community Mortgage Lenders of
America (CMLA), Commercial Real Estate Finance Council
(CREFC), Real Estate Services Providers Council, Inc.
(RESPRO), The Real Estate Roundtable, Leading Builders of
America, The Manufactured Housing Institute (MHI), Building
Owners and Managers Association (BOMA) International.
The Realty Alliance, Habitat for Humanity, Institute of
Real Estate Management (IREM), International Council of
Shopping Centers (ICSC), Association of Bermuda Insurers and
Reinsurers (ABIR), Wholesale & Specialty Insurance
Association (WSIA), Small Business & Entrepreneurship Council
(SBE Council), Conservatives for Responsible Stewardship
(CRS), Coalition to Reduce Spending, American Consumer
Institute, CCIM Institute, Council for Affordable and Rural
Housing, NAOIP, The Commercial Real Estate Development
Association, National Association of Real Estate Investment
Trusts (Nareit), National Affordable Housing Management
Association, National Association of Housing Cooperatives,
National Leased Housing Association, Taxpayers for Common
Sense, R Street Institute, National Taxpayers Union (NTU).
Mr. BLUMENAUER. Mr. Speaker, the list is an interesting collection.
It includes environmental groups, consumer groups, housing advocates,
businesses, fiscal watchdogs, and taxpayer
[[Page H9235]]
advocates. And all of them don't agree with every detail. Many of them
would identify with some of the debates, but they agree that this bill
is a step in the right direction, and we should use it.
What we vote on today--and I hope that it passes, I am going to vote
for it--is not the last word. As it wends its way through the
legislative process, if we all do our job of making it better, we can
have that high-five moment that I think we all look forward to.
Ms. MAXINE WATERS of California. Mr. Speaker, I reserve the balance
of my time.
Mr. HENSARLING. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman
from Wisconsin (Mr. Duffy), the chairman of the Housing and Insurance
Subcommittee, and the sponsor of the legislation, the 21st Century
Flood Reform Act.
Mr. DUFFY. Mr. Speaker, I want to thank Chairman Hensarling for all
his good and relentless hard work on this bill. I appreciate his
tenacity.
I want to thank Mr. Blumenauer for the comments that he just made.
The two of us had not worked together on a lot of issues, but this is
one we saw eye-to-eye, and, through flood, I think we have seen a lot
of common ground and built a friendship together.
I actually promised I was going to wear a bike today, and I haven't
kept my promise. Later today, I will wear that for Mr. Blumenauer.
But I want to talk about the debate we have had here today. This has
been an effort at bipartisanship. On the Republican side, I have worked
with Representatives Graves and Scalise and Zeldin and King and
LoBiondo and MacArthur trying to bring in their concerns to this
legislation.
On the Democrat side, I have worked with Mr. Scott; I have worked
with Mrs. Maloney, Ms. Velazquez, all concerned about the Northeast and
the Sandy reforms that were necessary to learn the lessons. We have
included those reforms in this bill.
I sat down countless hours with the ranking member. She shared her
phone number with me. She left me at the dance though, because before
this thing was done, she walked away. We tried to get a bipartisan
bill. We worked on this thing together; so to say something other than
that is just not fair, it is not right. We have tried.
You might not like the end product, but we have gone a great distance
to get a bill that everybody can agree on, and I think we are going to
get that today.
{time} 1615
I want to talk about a few things. We are $25 billion in debt, a
deficit of $1.5 billion a year. This program is not sustainable. We
have people who are building homes in harm's way. They get flooded
multiple times.
The chairman and I saw a homeowner who was flooded three times in 10
years. One homeowner let his house burn because he had to go save his
kids who were getting swept away in floodwaters, and we rebuild those
homes in the same location and risk the lives of firefighters and first
responders to go save them. This policy is unacceptable and it is not
compassionate.
I hear my friends across the aisle say: You are going to hurt
homeowners. Their rates are going to skyrocket.
What? On average, for a year, the price of flood insurance, on
average, will go up $20, less than $2 a month, and they are screaming
bloody murder about that? And what do they get for it? I have a list of
30 things of great reform we get in this bill to help homeowners.
Yes, highly subsidized properties in a pre-FIRM space are going to
pay a little more, a little higher escalator, but we spend a billion
dollars on mitigation helping people flood-proof their homes, helping
people get bought out of their home and get to higher ground so they
don't have to live in a home that is continually flooded.
I don't know if you have lived in a flood home, but it ain't fun. It
is horrible. Get them out. A billion dollars for that program.
We help communities with their mapping. We give them options to map,
and we give them an appeals process in their mapping. Great reform, we
set up a private market.
Now, you don't have to take the private market, but you have an
option to get a private plan that might have a better rate than the
government offers you. You have a choice--a choice, God forbid--a
choice that gives you a better price.
By the way, when we get the private market in, we all float our risk
to the private sector. When a disaster hits Texas or Florida, it is not
just the taxpayers who bear all the burden. We have private companies
in play. That is a great thing. This is a good bill. This is a
bipartisan bill. Let's stand together and reform a program to help the
homeowner and our national debt.
Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself the
balance of my time.
Mr. Speaker, let me say to my colleagues on the opposite side of the
aisle, my chairmen, Mr. Hensarling and Mr. Duffy, we did work very hard
to try and get a bipartisan bill.
As I negotiated with them, every time I reached an impasse, I thought
about Sandy and how hard Democrats had to work to provide support for
an area that should have gotten the support of everyone in the Congress
of the United States. However, there was a demand from the opposite
side of the aisle that it had to be paid for. We worked very hard to
give them assistance, and they still have not been made whole.
Every time I reached an impasse, I thought about Louisiana and the
work that I had done after Katrina and the visits that I have made
there, the people that I got to know, and what I really have learned to
understand about affordability.
Every time I reached an impasse, I thought about Florida, I thought
about Texas and what has happened recently with these storms.
Having worked in this way and having been a coauthor of Biggert-
Waters and having been the author of the Homeowner Flood Insurance
Affordability Act, I think I know something about storms, something
about the devastation that has been caused to families and communities,
and I insist on affordability.
Mr. Speaker, as Democrats and some Republicans have made clear, this
is a comprehensively bad bill that is harmful for families and
businesses. In the wake of one of the most disastrous hurricane seasons
in history, this bill would make flood insurance more expensive, less
available, and less fair for millions of Americans.
I have repeatedly stated that affordability is my top priority, which
is made worse by this bill. Even with the slight revisions that the
chairman has made, coverage would still be less available, and cherry-
picking by the private sector would be encouraged, putting the
government on the hook for the riskiest of policies.
It is important to note that the biggest challenge to the National
Flood Insurance Program is its massive debt, which the bill only
addresses by charging hardworking Americans more for their flood
insurance. That is just not fair.
We have comprehensive support for this bill from both the private
sector and from our nonprofits. I don't know about any consumer
organizations that support this bill, but I do know this. I know that I
worked very hard to talk about mitigation and how I thought it could be
a program that the locals could be involved in with the Federal
Government. I know I worked very hard talking about the repetitive
occurrences that the chairman was concerned about, but I also offered
alternatives to what he is advocating.
I talked about outreach and education to them, about a buyout program
that they may join with and accept voluntarily. I know that I tried
everything that I could. I listened to Members from both sides of the
aisle, and I know that we both wanted to have a comprehensive bill that
was bipartisan.
Mr. Speaker, it is unfortunate that we end up with this bad bill. I
ask for a ``no'' vote on this bill, and I yield back the balance of my
time.
Mr. HENSARLING. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, there are a lot of horrific images from Hurricane
Harvey. We should never forget them. We should look at this image and
say: Never again.
Yet I hear from my colleagues: Let's preserve the status quo. Let's
again subsidize people to live i harm's way.
I say no, Mr. Speaker. It is time to get these people out of these
neighborhoods. Let's help them. That is why
[[Page H9236]]
this bill has more money for mitigation and relocation than has ever
been in any flood insurance reform bill.
I hear my ranking member say that she cares about affordability. Then
let's give people options.
I hear from people who say: NFIP would have cost me $2,700 a year,
but I was able to find private coverage for $718.
Here is another one: I have benefited from switching to private
market flood insurance from FEMA. I save about $1,000 a year.
Let's save money. Let's save premiums. Let's save lives. Let's vote
``aye'' on the 21st Century Flood Reform Act.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Yoder). All time for debate has expired.
Pursuant to House Resolution 616, the previous question is ordered on
the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit
Mr. PASCRELL. Mr. Speaker, I have a motion to recommit at the desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. PASCRELL. Mr. Speaker, in this form, yes.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Pascrell moves to recommit the bill, H.R. 2874, to the
Committee on Financial Services with instructions to report
the same back to the House forthwith with the following
amendment:
At the end of the bill, add the following new title:
TITLE VII--EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
Notwithstanding any other provision of this Act, each
provision of this Act shall take effect on the later of the
following:
(1) The first date by which both the Administrator of the
Federal Emergency Management Agency and the Inspector General
of the Federal Emergency Management Agency have,
independently of each other, submitted written certification
to the Congress and caused such certification to be printed
in the Federal Register that final resolution has been
reached on all claims for losses resulting from Hurricane
Sandy of 2012 that were covered by flood insurance made
available under the National Flood Insurance Program; or
(2) The date that such provision would otherwise take
effect but for this section.
Mr. PASCRELL (during the reading). Mr. Speaker, I ask unanimous
consent to dispense with the reading.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New Jersey?
There was no objection.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
Jersey is recognized for 5 minutes in support of his motion.
Mr. PASCRELL. Mr. Speaker, this is the final amendment to the bill,
which will not kill the bill or send it back to the committee. If
adopted, the bill will immediately proceed to final passage, as
amended.
Mr. Speaker, this amendment would require the FEMA Administrator and
the DHS inspector general to certify that all claims for victims of
Superstorm Sandy are addressed before this bill takes effect.
Many in this Chamber should recall 5 years ago Superstorm Sandy
caused widespread destruction throughout New Jersey and many States in
the Northeast. Superstorm Sandy barreled up the East Coast, bringing
death and destruction. Over 200 people in the United States and the
Caribbean died, and the storm caused more than $71 billion in damage.
Sandy swamped coastline communities. It knocked out power for millions
of people and businesses, flooded public transit systems, and set
neighborhoods ablaze.
Many Sandy victims have begun down the long road of recovery, but 5
years later, many victims and communities are still waiting for relief.
They are still struggling to rebuild their homes and their businesses.
It took years for the hardest hit communities in my district, Little
Ferry and Moonachie, to receive the relief to build key pieces of
public infrastructure.
In New Jersey, over 1,200 property owners are still moving through
the recovery programs. Approximately 900 are still not back in their
homes. Of all Sandy victims, there are over 2,000 people still awaiting
final review of their flood insurance claims.
After victims faced delay after delay to start the claims process
with FEMA, they then struggled with insurance companies which were and
continue to be a major source of strife for Sandy victims.
Many of the residents of New York and New Jersey saw insurers
intentionally paying out too little on their claims, which in many
cases was not enough to cover the cost of repairing the damage. We
heard stories of insurance adjusters making significant errors on
reports because they misunderstood technical definitions,
underestimated the extent of the damage done, or intentionally
misrepresented the cause of the damage.
This is all documented.
The problems were so significant, we had to force FEMA to reopen the
claims process for thousands of homeowners. Some ended up getting
additional money. I have heard from many who say that it is still not
enough to cover their recovery costs.
Mr. Speaker, on the heels of Hurricanes Harvey and Maria, we are now
tasked with reauthorizing the National Flood Insurance Program. To
ensure these victims do not face the same troubles as those in my
State, we need to apply the lessons we learned from Superstorm Sandy in
this reauthorization. Tragically, this bill does not.
We should not allow companies who profited off Superstorm Sandy
victims while committing widespread fraud and failing to meet their
basic obligations under the National Flood Insurance Program to sell
their own flood insurance.
We should not reauthorize the program without reforming the claims
process to ensure technical definitions of ``earth movement,''
``basement,'' and ``mold damage'' do not cause delay for victims
receiving their fair share.
This bill should ensure that victims have the time they need to file
an appeal and require FEMA to respond so victims are able to move the
claims process forward.
I submitted several amendments to the Rules Committee with my
colleague Representative Frank Pallone of New Jersey to address these
issues and the lessons we learned from Sandy. We were denied a vote.
At the very least, Mr. Speaker, we must ensure that FEMA certifies
that all victims from Superstorm Sandy have had action taken on their
case before we make more changes to the National Flood Insurance
Program. That is what a vote in favor of this recommit would do. Simply
put, it would delay the implementation of the bill until the FEMA
Administrator and the DHS inspector general certified that all claims
for Superstorm Sandy have been addressed.
In order to support Superstorm Sandy victims, I encourage my
colleagues to vote in support of this recommit, because a ``no'' vote
is a vote against the victims of Superstorm Sandy, no doubt about it,
who, for 5 years have still not been made whole.
Mr. Speaker, I yield back the balance of my time.
Mr. HENSARLING. Mr. Speaker, I claim the time in opposition.
The SPEAKER pro tempore. The gentleman from Texas is recognized for 5
minutes.
Mr. HENSARLING. Mr. Speaker, first, I have some good news for my
friend on the other side of the aisle. I would have him pay very
careful attention to title VI of the 21st Century Flood Reform Act. It
has everything to do with the whole Sandy appeals process. We have 25
pages of reforms dealing with what the gentleman was describing,
including Section 601, Penalties for Fraud and False Statements in the
National Flood Insurance Program.
And, indeed, after Sandy, many of the policyholders were wronged and
there was much that we learned from that experience, and we tried to
listen very carefully to a number of our colleagues from New Jersey and
New York and, indeed, took many of the provisions which they have
suggested.
{time} 1630
The gentleman from New Jersey, indeed, has some very legitimate
issues and concerns. Many of them, I hope and trust, have been
addressed in this
[[Page H9237]]
bill. It is not too late. I would urge the gentleman to look at that
title IV of the bill and perhaps he would be encouraged to support it.
Otherwise, Mr. Speaker, I must urge rejection of the motion to
recommit because, as you heard from the gentleman from New Jersey, he
says it is all about delay. We can't delay getting people out of harm's
way. We can't delay getting people out of neighborhoods that have
flooded four, five, six, seven times in the last 8 years.
For those who can't afford flood insurance, we can't delay getting
them market alternatives, where, in the 2 percent of the market that
exists today, particularly in Pennsylvania, there are people that are
not just saving hundreds of dollars, Mr. Speaker, but even thousands of
dollars. We can't delay.
We know that this is a program that is unsustainable. It is a
bankrupt program that is being funded, regrettably, by a bankrupt
nation. Taxpayers are on the hook for $1.2 trillion and an annual
deficit of $1.5 billion of actuarial deficit a year.
This thing isn't just broke, Mr. Speaker, it is bailout broke. We
can't delay. We can't delay trying to put this back on a path of
sustainability so the next time we have a serious storm or superstorm,
we want there to be funds available to actually pay claims.
So, no, Mr. Speaker, we cannot delay. We cannot delay, and we cannot
continue to do what we have done in the past in these repetitive loss
areas and have our hands unclean by putting people back in the exact
same neighborhoods that haven't just caused the loss of their property,
but one day may very well cost the loss of their lives. We cannot
delay.
Mr. Speaker, I urge a rejection of the motion to recommit, and I
yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. PASCRELL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, this 15-
minute vote on the motion to recommit will be followed by 5-minute
votes on:
Passage of the bill, if ordered; and
Adoption of the conference report to accompany H.R. 2810.
The vote was taken by electronic device, and there were--yeas 190,
nays 236, not voting 7, as follows:
[Roll No. 629]
YEAS--190
Adams
Aguilar
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly
Conyers
Cooper
Correa
Costa
Courtney
Crist
Crowley
Cuellar
Cummings
Davis (CA)
Davis, Danny
DeFazio
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Engel
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gomez
Gonzalez (TX)
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Sean
Matsui
McCollum
McEachin
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Napolitano
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Perlmutter
Peters
Peterson
Pingree
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NAYS--236
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Culberson
Curbelo (FL)
Curtis
Davidson
Davis, Rodney
Denham
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gianforte
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Handel
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jones
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marino
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Newhouse
Noem
Norman
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Reichert
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NOT VOTING--7
Bridenstine
Dent
Johnson, Sam
Maloney, Carolyn B.
McGovern
Pelosi
Pocan
{time} 1656
Mrs. HANDEL, Messrs. LEWIS of Minnesota, JORDAN, BERGMAN, and Mrs.
BLACK changed their vote from ``yea'' to ``nay.''
Mr. CARBAJAL, Ms. SINEMA, Messrs. EVANS, DAVID SCOTT of Georgia, Ms.
MOORE, Mr. McNERNEY, Ms. MATSUI, and Mr. AL GREEN of Texas changed
their vote from ``nay'' to ``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. This is a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 237,
nays 189, not voting 7, as follows:
[Roll No. 630]
YEAS--237
Aderholt
Allen
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Blumenauer
Bost
Brady (TX)
Brat
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
[[Page H9238]]
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Cheney
Clay
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Cooper
Correa
Costello (PA)
Cramer
Crawford
Culberson
Curtis
Davidson
Davis, Rodney
Denham
DeSantis
DesJarlais
Doggett
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Gaetz
Gallagher
Garrett
Gianforte
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffith
Grothman
Guthrie
Handel
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huffman
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Lance
Latta
Lewis (MN)
Lipinski
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marino
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Moolenaar
Mooney (WV)
Mullin
Newhouse
Noem
Nolan
Norman
Nunes
Olson
Palmer
Paulsen
Pearce
Perry
Peters
Peterson
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Reichert
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Rosen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schneider
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Sherman
Shimkus
Shuster
Simpson
Sinema
Smith (MO)
Smith (NE)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Titus
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NAYS--189
Abraham
Adams
Aguilar
Amash
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Cleaver
Clyburn
Cohen
Connolly
Conyers
Costa
Courtney
Crist
Crowley
Cuellar
Cummings
Curbelo (FL)
Davis (CA)
Davis, Danny
DeFazio
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Diaz-Balart
Dingell
Donovan
Doyle, Michael F.
Ellison
Engel
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Frelinghuysen
Fudge
Gabbard
Gallego
Garamendi
Gomez
Gonzalez (TX)
Gottheimer
Graves (LA)
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
King (NY)
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
LoBiondo
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Carolyn B.
Maloney, Sean
Matsui
McCollum
McNerney
Meeks
Meng
Mitchell
Moore
Moulton
Murphy (FL)
Nadler
Napolitano
Neal
Norcross
O'Halleran
O'Rourke
Palazzo
Pallone
Panetta
Pascrell
Payne
Perlmutter
Pingree
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Ros-Lehtinen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sires
Slaughter
Smith (NJ)
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--7
Bridenstine
Dent
Johnson, Sam
McEachin
McGovern
Pelosi
Pocan
{time} 1703
Mr. MARSHALL changed his vote from ``nay'' to ``yea.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________