[Congressional Record Volume 167, Number 142 (Saturday, August 7, 2021)]
[Senate]
[Pages S6025-S6026]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2647. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for 
herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. 
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the 
bill H.R. 3684, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. ___. CAP ON ANNUAL PREMIUM INCREASES.

       (a) Definitions.--In this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Federal Emergency Management Agency; and
       (2) the term ``covered cost''--
       (A) means--
       (i) the amount of an annual premium with respect to any 
     policy for flood insurance under the National Flood Insurance 
     Program;
       (ii) any surcharge imposed with respect to a policy 
     described in clause (i) (other than a surcharge imposed under 
     section 1304(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4011(b))), including a surcharge imposed under 
     section 1308A(a) of that Act (42 U.S.C. 4015a(a)); and
       (iii) a fee described in paragraph (1)(B)(iii) or (2) of 
     section 1307(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4014(a)); and
       (B) does not include any cost associated with the purchase 
     of insurance under section 1304(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011(b)), including any 
     surcharge that relates to insurance purchased under such 
     section 1304(b).
       (b) Limitation on Increases.--
       (1) Limitation.--
       (A) In general.--During the 5-year period beginning on the 
     date of enactment of this Act, notwithstanding section 
     1308(e) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4015(e)), and subject to subparagraph (B), the 
     Administrator may not, in any year, increase the amount of 
     any covered cost by an amount that is more than 9 percent, as 
     compared with the amount of the covered cost during the 
     previous year, except where the increase in the covered cost 
     relates to an exception under paragraph (1)(C)(iii) of such 
     section 1308(e).
       (B) Decrease of amount of deductible or increase in amount 
     of coverage.--In the case of a policyholder described in 
     section 1308(e)(1)(C)(ii) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4015(e)(1)(C)(ii)), the Administrator 
     shall establish a process by which the Administrator 
     determines an increase in covered costs for the policyholder 
     that is--
       (i) proportional to the relative change in risk based on 
     the action taken by the policyholder; and
       (ii) in compliance with subparagraph (A).
       (2) New rating systems.--
       (A) Classification.--With respect to a property, the 
     limitation under paragraph (1) shall remain in effect for 
     each year until the covered costs with respect to the 
     property reflect full actuarial rates, without regard to 
     whether, at any time until the year in which those covered 
     costs reflect full actuarial rates, the property is rated or 
     classified under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology).
       (B) New policyholder.--If a property to which the 
     limitation under paragraph (1) applies is sold before the 
     covered costs for the property reflect full actuarial rates 
     determined under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology), that limitation shall 
     remain in effect for each year until the year in which those 
     full actuarial rates takes effect.
       (c) Rule of Construction.--Nothing in subsection (b) may be 
     construed as prohibiting the Administrator from reducing, in 
     any year, the amount of any covered cost, as compared with 
     the amount of the covered cost during the previous year.
       (d) Average Historical Loss Year.--Section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year' shall be 
     computed in accordance with generally accepted actuarial 
     principles.''.
       (e) Disclosure With Respect to the Affordability 
     Standard.--Section 1308(j) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second 
     sentence, by inserting ``and shall include in the report the 
     number of those exceptions as of the date on which the 
     Administrator submits the report and the location of each 
     policyholder insured under those exceptions, organized by 
     county and State'' after ``of the Senate''.

     SEC. ___. TARGETED MEANS-TESTED ASSISTANCE.

       (a) In General.--Chapter I of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting 
     after section 1308A (42 U.S.C. 4015a) the following:

     ``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.

       ``(a) Definitions.--In this section:
       ``(1) Covered property.--The term `covered property' 
     means--
       ``(A) a primary residential dwelling designed for the 
     occupancy of from 1 to 4 families; or
       ``(B) personal property relating to a dwelling described in 
     subparagraph (A).
       ``(2) Eligible policyholder.--The term `eligible 
     policyholder' means a policyholder with a household income 
     that is not more than 20 percent of the area median income 
     for the area in which the property to which the policy 
     applies is located.
       ``(3) Housing expenses.--The term `housing expenses' means, 
     with respect to a household, the total amount that the 
     household spends in a year on--
       ``(A) mortgage payments, and rent;
       ``(B) property taxes;
       ``(C) homeowners insurance; and

[[Page S6026]]

       ``(D) premiums for flood insurance under the national flood 
     insurance program.
       ``(4) Insurance costs.--The term `insurance costs' means, 
     with respect to a covered property for a year--
       ``(A) risk premiums and fees estimated under section 1307 
     and charged under section 1308;
       ``(B) surcharges assessed under sections 1304 and 1308A; 
     and
       ``(C) any amount established under section 1310A(c).
       ``(b) Authority.--Subject to the availability of 
     appropriations, the Administrator is authorized to carry out 
     a means-tested program under which the Administrator provides 
     assistance to eligible policyholders in the form of graduated 
     discounts for insurance costs with respect to covered 
     properties.
       ``(c) Eligibility.--To determine eligibility for means-
     tested assistance under this section, the Administrator may 
     require any of the following with respect to an eligible 
     policyholder:
       ``(2) Income verification from the National Directory of 
     New Hires established under section 453(i) of the Social 
     Security Act (42 U.S.C. 653(i)).
       ``(3) A self-certification of eligibility by the eligible 
     policyholder that is provided under penalty of perjury 
     pursuant to section 1746 of title 28, United States Code.
       ``(4) Any other method identified by the Administrator in 
     interim guidance, or a final rule, issued under subsection 
     (e).
       ``(d) Discount.--The Administrator may establish graduated 
     discounts available to eligible policyholders under this 
     section, which may be based on the following factors:
       ``(1) The percentage by which the household income of an 
     eligible policyholder is equal to, or less than, 120 percent 
     of the area median income for the area in which the property 
     to which the policy applies is located.
       ``(3) The number of eligible policyholders participating in 
     the program established under this section.
       ``(4) The availability of funding.
       ``(5) Any other factor that the Administrator finds 
     reasonable and necessary to carry out the purposes of this 
     section.
       ``(e) Implementation.--
       ``(1) In general.--The Administrator shall issue final 
     rules to implement this section.
       ``(2) Interim guidance.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator shall issue 
     interim guidance to implement this section, which shall--
       ``(i) include--

       ``(I) a description of how the Administrator will 
     determine--

       ``(aa) eligibility for households to participate in the 
     program established under this section; and
       ``(bb) assistance levels for eligible households to which 
     assistance is provided under this section;

       ``(II) the methodology that the Administrator will use to 
     determine the amount of assistance provided to eligible 
     households under this section; and
       ``(III) any requirements to which eligible policyholders to 
     which assistance is provided under this section will be 
     subject; and

       ``(ii) expire on the later of--

       ``(I) the date that is 84 months after the date of 
     enactment of this section; or
       ``(II) the date on which the final rules issued under 
     paragraph (1) take effect.

       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     may be construed to preclude the Administrator from amending 
     the interim guidance issued under that subparagraph.
       ``(f) Collection of Demographic Information.--The 
     Administrator, in order to evaluate and monitor the 
     effectiveness of this section, and to comply with the 
     reporting requirements under subsection (g), may request 
     demographic information, and other information, with respect 
     to an eligible policyholder to which assistance is provided 
     under this section, which may include--
       ``(1) the income of the eligible policyholder, as compared 
     with the area median income for the area in which the 
     property to which the policy applies is located; and
       ``(2) demographic characteristics of the eligible 
     policyholder, including the race and ethnicity of the 
     eligible policyholder.
       ``(g) Reports to Congress.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this section, and biennially thereafter, the 
     Administrator shall submit to Congress a report regarding the 
     implementation and effectiveness of this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include information regarding, for the period covered 
     by the report--
       ``(A) the distribution of household area median income for 
     eligible policyholders to which assistance is provided under 
     this section;
       ``(B) the number of eligible policyholders to which 
     assistance is provided under this section, which shall be 
     disaggregated by income and demographic characteristics;
       ``(C) the cost of providing assistance under this section; 
     and
       ``(D) the average amount of assistance provided to an 
     eligible policyholder under this section, which shall be 
     disaggregated as described in subparagraph (B).
       ``(h) Risk Communication.--For the purposes of the 
     communication required under section 1308(l), the 
     Administrator shall provide to an eligible policyholder to 
     which assistance is provided under this section a full flood 
     risk determination with respect to the property of the 
     eligible policyholder, which shall reflect the insurance 
     costs with respect to the property before that assistance is 
     provided.
       ``(i) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administrator $800,000,000 for each 
     of fiscal years 2022 through 2025 to carry out this section.
       ``(2) Notification.--If, in a fiscal year, the 
     Administrator determines that the amount made available to 
     carry out this section is insufficient to provide assistance 
     under this section, the Administrator shall submit to 
     Congress a notification of the remaining amounts necessary to 
     provide that assistance for that fiscal year.
       ``(3) Distribution of premium.--With respect to the amount 
     of the discounts provided under this section in a fiscal 
     year, and any administrative expenses incurred in carrying 
     out this section for that fiscal year, the Administrator 
     shall, from amounts made available to carry out this section 
     for that fiscal year, deposit in the National Flood Insurance 
     Fund established under section 1310 an amount equal to those 
     discounts and administrative expenses, except to the extent 
     that section 1310A applies to any portion of those discounts 
     or administrative expenses, in which case the Administrator 
     shall deposit an amount equal to those amounts to which 
     section 1310A applies in the National Flood Insurance Reserve 
     Fund established under section 1310A.''.
       (b) National Flood Insurance Act of 1968.--The National 
     Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 
     amended--
       (1) in section 1308(e) (42 U.S.C. 4015(e))--
       (A) in paragraph (1)--
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