[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[House]
[Pages 29832-29836]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                                H.R. 253

                        Offered by Mr. Bereuter

               (Amendment in the Nature of a Substitute)

       Amendment No. 1: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Flood Insurance Reform Act 
     of 2003''.

     SEC. 2. CONGRESSIONAL FINDINGS.

       The Congress finds that--
       (1) the national flood insurance program (A) identifies the 
     flood risk, (B) provides flood risk information to the 
     public, (C) encourages State and local governments to make 
     appropriate land use adjustments to constrict the development 
     of land which is exposed to flood damage and minimize damage 
     caused by flood losses, and (D) makes flood insurance 
     available on a nationwide basis that would otherwise not be 
     available, to accelerate recovery from floods, mitigate 
     future losses, save lives, and reduce the personal and 
     national costs of flood disasters;
       (2) the national flood insurance program insures 
     approximately 4,400,000 policyholders;
       (3) approximately 48,000 properties currently insured under 
     the program have experienced, within a 10-year period, two or 
     more flood losses where each such loss exceeds the amount 
     $1,000;
       (4) approximately 10,000 of these repetitive-loss 
     properties have experienced either two or three losses that 
     cumulatively exceed building value or four or more losses, 
     each exceeding $1,000;
       (5) repetitive-loss properties constitute a significant 
     drain on the resources of the national flood insurance 
     program, costing about $200,000,000 annually;
       (6) repetitive-loss properties comprise approximately one 
     percent of currently insured properties but are expected to 
     account for 25 to 30 percent of claims losses;
       (7) the vast majority of repetitive-loss properties were 
     built before local community implementation of floodplain 
     management standards under the program and thus are eligible 
     for subsidized flood insurance;
       (8) while some property owners take advantage of the 
     program allowing subsidized flood insurance without requiring 
     mitigation action, others are trapped in a vicious cycle of 
     suffering flooding, then repairing flood damage, then 
     suffering flooding, without the means to mitigate losses or 
     move out of harm's way;
       (9) mitigation of repetitive-loss properties through 
     buyouts, elevations, relocations, or flood-proofing will 
     produce savings for policyholders under the program and for 
     Federal taxpayers through reduced flood insurance losses and 
     reduced Federal disaster assistance;
       (10) a strategy of making mitigation offers aimed at high-
     priority repetitive-loss properties and shifting more of the 
     burden of recovery costs to property owners who choose to 
     remain vulnerable to repetitive flood damage can encourage 
     property owners to take appropriate actions that reduce loss 
     of life and property damage and benefit the financial 
     soundness of the program; and
       (11) the method for addressing repetitive-loss properties 
     should be flexible enough to take into consideration 
     legitimate circumstances that may prevent an owner from 
     taking a mitigation action.

     SEC. 3. EXTENSION OF PROGRAM AND CONSOLIDATION OF 
                   AUTHORIZATIONS.

       The National Flood Insurance Act of 1968 is amended as 
     follows:
       (1) Borrowing authority.--In the first sentence of section 
     1309(a) (42 U.S.C. 4016(a)), by striking ``through December'' 
     and all that follows through ``, and'' and inserting the 
     following: ``through the date specified in section 1319, 
     and''.
       (2) Authority for contracts.--In section 1319 (42 U.S.C. 
     4026), by striking ``after'' and all that follows and 
     inserting ``after September 30, 2008.''.
       (3) Emergency implementation.--In section 1336(a) (42 
     U.S.C. 4056(a)), by striking ``during the period'' and all 
     that follows through ``in accordance'' and inserting ``during 
     the period ending on the date specified in section 1319, in 
     accordance''.
       (4) Authorization of appropriations for studies.--In 
     section 1376(c) (42 U.S.C. 4127(c)), by striking ``through'' 
     and all that follows and inserting the following: ``through 
     the date specified in section 1319, for studies under this 
     title.''.

[[Page 29833]]



     SEC. 4. ESTABLISHMENT OF PILOT PROGRAM FOR MITIGATION OF 
                   SEVERE REPETITIVE LOSS PROPERTIES.

       (a) In General.--The National Flood Insurance Act of 1968 
     is amended by inserting after section 1361 (42 U.S.C. 4102) 
     the following new section:


  ``pilot program for mitigation of severe repetitive loss properties

       ``Sec. 1362. (a) Authority.--To the extent amounts are made 
     available for use under this section, the Director may, 
     subject to the limitations of this section, provide financial 
     assistance to States and communities for taking actions with 
     respect to severe repetitive loss properties (as such term is 
     defined in subsection (b)) to mitigate flood damage to such 
     properties and losses to the National Flood Insurance Fund 
     from such properties.
       ``(b) Severe Repetitive Loss Property.--For purposes of 
     this section, the term `severe repetitive loss property' has 
     the following meaning:
       ``(1) Single-family properties.--In the case of a property 
     consisting of one to four residences, such term means a 
     property that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which four or more separate claims payments have 
     been made under flood insurance coverage under this title 
     before the date of the enactment of the Flood Insurance 
     Reform Act of 2003, with the amount of each such claim 
     exceeding $5,000, and with the cumulative amount of such 
     claims payments exceeding $20,000;
       ``(ii) for which four or more separate claims payments have 
     been made under flood insurance coverage under this title 
     after the date of the enactment of the Flood Insurance Reform 
     Act of 2003, with the amount of each such claim exceeding 
     $3,000, and with the cumulative amount of such claims 
     payments exceeding $15,000; or
       ``(iii) for which at least two separate claims payments 
     have been made under such coverage, with the cumulative 
     amount of such claims exceeding the value of the property.
       ``(2) Multifamily properties.--In the case of a property 
     consisting of five or more residences, such term shall have 
     such meaning as the Director shall by regulation provide.
       ``(c) Eligible Activities.--Amounts provided under this 
     section to a State or community may be used only for the 
     following activities:
       ``(1) Mitigation activities.--To carry out mitigation 
     activities that reduce flood damages to severe repetitive 
     loss properties, including elevation, relocation, demolition, 
     and floodproofing of structures, and minor physical localized 
     flood control projects.
       ``(2) Purchase.--To purchase severe repetitive loss 
     properties, subject to subsection (f).
       ``(d) Matching Requirement.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Director may not provide assistance under this section to a 
     State or community in an amount exceeding 3 times the amount 
     that the State or community certifies, as the Director shall 
     require, that the State or community will contribute from 
     non-Federal funds for carrying out the eligible activities to 
     be funded with such assistance amounts.
       ``(2) Waiver.--
       ``(A) Authority.--Subject to subparagraph (B), the Director 
     may waive the limitation under paragraph (1) for any State, 
     and for the communities located in that State, with respect 
     to a year, if, for such year--
       ``(i) 5 percent or more of the total number of severe 
     repetitive loss properties in the United States are located 
     in such State; and
       ``(ii) the State submits a plan to the Director specifying 
     how the State intends to reduce the number of severe 
     repetitive loss properties and the Director determines, after 
     consultation with State and technical experts, that the State 
     has taken actions to reduce the number of such properties.
       ``(B) Limitation.--In each waiver under subparagraph (A), 
     the Director may waive the limitation under paragraph (1) 
     only to the extent that the State or community involved is 
     required to contribute, for each severe repetitive loss 
     property for which grant amounts are provided, not less than 
     10 percent of the cost of the activities for such properties 
     that are to be funded with grant amounts.
       ``(3) Non-federal funds.--For purposes of this subsection, 
     the term `non-Federal funds' includes State or local agency 
     funds, in-kind contributions, any salary paid to staff to 
     carry out the eligible activities of the recipient, the value 
     of the time and services contributed by volunteers to carry 
     out such activities (at a rate determined by the Director), 
     and the value of any donated material or building and the 
     value of any lease on a building.
       ``(e) Standards for Mitigation Offers.--The program under 
     this section for providing assistance for eligible activities 
     for severe repetitive loss properties shall be subject to the 
     following limitations:
       ``(1) Priority.--In determining the properties for which to 
     provide assistance for eligible activities under subsection 
     (c), the Director shall provide assistance for properties in 
     the order that will result in the greatest amount of savings 
     to the National Flood Insurance Fund in the shortest period 
     of time.
       ``(2) Offers.--The Director shall provide assistance in a 
     manner that permits States and communities to make offers to 
     owners of severe repetitive loss properties to take eligible 
     activities under subsection (c) as soon as is practicable.
       ``(3) Notice.--Upon making an offer to provide assistance 
     with respect to a property for any eligible activity under 
     subsection (c), the State or community shall notify each 
     holder of a recorded interest on the property of such offer 
     and activity.
       ``(f) Purchase Offers.--A State or community may take 
     action under subsection (c)(2) to purchase a severe 
     repetitive loss property only if the following requirements 
     are met:
       ``(1) Use of property.--The State or community enters into 
     an agreement with the Director that provides assurances that 
     the property purchased will be used in a manner that is 
     consistent with the requirements of clauses (i) and (ii) of 
     section 404(b)(2)(B) of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 
     5170c(b)(2)(B)) for properties acquired, accepted, or from 
     which a structure will be removed pursuant to a project 
     provided property acquisition and relocation assistance under 
     such section 404(b).
       ``(2) Purchase price.--The amount of purchase offer is not 
     less than the greatest of--
       ``(A) the amount of the original purchase price of the 
     property, when purchased by the holder of the current policy 
     of flood insurance under this title;
       ``(B) the total amount owed, at the time the offer to 
     purchase is made, under any loan secured by a recorded 
     interest on the property;
       ``(C) an amount equal to the fair market value of the 
     property immediately before the most recent flood event 
     affecting the property;
       ``(D) an amount equal to the replacement value of the 
     property immediately before the most recent flood event 
     affecting the property, except that this subparagraph shall 
     apply in the case only of a property for which the State or 
     community taking action under subsection (c)(2) determines, 
     and the Director concurs, that the fair market value referred 
     to in subparagraph (C) of the property is less than the 
     purchase price of a replacement primary residence that is of 
     comparable value, functionally equivalent, and located in the 
     same community or market area but not in an area having 
     special flood hazards.
       ``(g) Increase to Actuarial Rates in Cases of Refusal to 
     Mitigate.--
       ``(1) In general.--In any case in which the owner of a 
     severe repetitive loss property refuses an offer to take 
     action under paragraph (1) or (2) of subsection (c) with 
     respect to such property, the Director shall--
       ``(A) notify each holder of a recorded interest on the 
     property of such refusal; and
       ``(B) increase the chargeable risk premium rate for flood 
     insurance coverage under this title for the property to an 
     amount equal to the applicable estimated risk premium rate 
     for such area (or subdivision thereof) under section 
     1307(a)(1) and apply appropriate loss deductibles.
       ``(2) Appeals.--
       ``(A) In general.--Any owner of a severe repetitive loss 
     property may appeal a determination of the Director to take 
     action under paragraph (1)(B) with respect to such property, 
     based only upon the following grounds:
       ``(i) As a result of such action, the owner of the property 
     will not be able to purchase a replacement primary residence 
     of comparable value and that is functionally equivalent.
       ``(ii) As a result of such action, the preservation or 
     maintenance of any prehistoric or historic district, site, 
     building, structure, or object included in, or eligible for 
     inclusion in, the National Register of historic places will 
     be interfered with, impaired, or disrupted.
       ``(iii) The flooding that resulted in the flood insurance 
     claims described in subsection (b)(2) for the property 
     resulted from significant actions by a third party in 
     violation of Federal, State, or local law, ordinance, or 
     regulation.
       ``(iv) In purchasing the property, the owner relied upon 
     flood insurance rate maps of the Federal Emergency Management 
     Agency that were current at the time and did not indicate 
     that the property was located in an area having special flood 
     hazards.
       ``(B) Procedure.--An appeal under this paragraph of a 
     determination of the Director shall be made by filing, with 
     the Director, a request for an appeal within 90 days after 
     receiving notice of such determination. Upon receiving the 
     request, the Director shall select, from a list of 
     independent third parties compiled by the Director for such 
     purpose, a party to hear such appeal. Within 90 days after 
     filing of the request for the appeal, such third party shall 
     review the determination of the Director and shall set aside 
     such determination if the third party determines that the 
     grounds under subparagraph (A) exist. During the pendency of 
     an appeal under this paragraph, the Director shall stay the 
     applicability of the rates established pursuant to paragraph 
     (1).

[[Page 29834]]

       ``(C) Effect of final determination.--In an appeal under 
     this paragraph--
       ``(i) if a final determination is made that the grounds 
     under subparagraph (A) exist, the third party hearing such 
     appeal shall make a determination of how much to reduce the 
     chargeable risk premium rate for flood insurance coverage for 
     the property involved in the appeal from the amount required 
     under paragraph (1) and the Director shall promptly reduce 
     the chargeable risk premium rate for such property by such 
     amount; and
       ``(ii) if a final determination is made that the grounds 
     under subparagraph (A) do not exist, the Director shall 
     promptly increase the chargeable risk premium rate for such 
     property to the amount established pursuant to paragraph (1) 
     and shall collect from the property owner the amount 
     necessary to cover the stay of the applicability of such 
     increased rates during the pendency of the appeal.
       ``(D) Costs.--If the third party hearing an appeal under 
     this paragraph is compensated for such service, the costs of 
     such compensation shall be borne--
       ``(i) by the owner of the property requesting the appeal, 
     if the final determination in the appeal is that the grounds 
     under subparagraph (A) do not exist; and
       ``(ii) by the National Flood Insurance Fund, if such final 
     determination is that the grounds under subparagraph (A) do 
     exist.
       ``(E) Report.--Not later than 6 months after the date of 
     the enactment of the Flood Insurance Reform Act of 2003, the 
     Director shall submit a report to the House of 
     Representatives and the Senate describing the rules, 
     procedures, and administration for appeals under this 
     paragraph.
       ``(h) Discretionary Actions in Cases of Fraudulent 
     Claims.--If the Director determines that a fraudulent claim 
     was made under flood insurance coverage under this title for 
     a severe repetitive loss property, the Director may--
       ``(1) cancel the policy and deny the provision to such 
     policyholder of any new flood insurance coverage under this 
     title for the property; or
       ``(2) refuse to renew the policy with such policyholder 
     upon expiration and deny the provision of any new flood 
     insurance coverage under this title to such policyholder for 
     the property.
       ``(i) Funding.--Pursuant to section 1310(a)(8), the 
     Director may use amounts from the National Flood Insurance 
     Fund to provide assistance under this section in each of 
     fiscal years 2004, 2005, 2006, 2007, and 2008, except that 
     the amount so used in each such fiscal year may not exceed 
     $40,000,000 and shall remain available until expended. 
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this subsection shall not be 
     subject to offsetting collections through premium rates for 
     flood insurance coverage under this title.
       ``(j) Termination.--The Director may not provide assistance 
     under this section to any State or community after September 
     30, 2008.''.
       (b) Availability of National Flood Insurance Fund 
     Amounts.--Section 1310(a) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4017(a)) is amended--
       (1) in paragraph (7), by striking ``and'' at the end; and
       (2) by striking paragraph (8) and inserting the following 
     new paragraph:
       ``(8) for financial assistance under section 1362 to States 
     and communities for taking actions under such section with 
     respect to severe repetitive loss properties, but only to the 
     extent provided in section 1362(i); and''.

     SEC. 5. ENHANCED AUTHORITY IN FLOOD MITIGATION ASSISTANCE 
                   PROGRAM.

       (a) Mitigation Assistance for Repetitive Claims 
     Properties.--Section 1366(e) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4104c) is amended--
       (1) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) Standard for assistance.--In providing grants under 
     this subsection for mitigation activities, the Director shall 
     give first priority for funding to repetitive claims 
     properties, or to such subsets of such properties as the 
     Director may establish pursuant to subsection (n)(2), that 
     the Director determines are the most cost-effective for the 
     taxpayers of the United States, are in the best interests of 
     the National Flood Insurance Fund, and for which matching 
     amounts under subsection (f) are available.''; and
       (2) by adding at the end the following new paragraph:
       ``(6) Notice.--Upon making an offer to conduct any eligible 
     mitigation activity under paragraph (5) with respect to a 
     repetitive claims property or a severe repetitive loss 
     property (as such term is defined in section 1362(b)) using 
     amounts provided under this section, the State or community 
     shall notify each holder of a recorded interest on the 
     property of such offer and activity.''.
       (b) Limitations on Property Acquisition.--Section 
     1366(e)(5)(C) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104c(e)(5)(C)) is amended by striking ``for public 
     use, as the Director determines is consistent with sound land 
     management and use in such area'' and inserting the 
     following: ``except that amounts provided under this section 
     may not be used for acquisition of any property unless--
       ``(i) the State or community enters into an agreement with 
     the Director that provides assurances that the property 
     purchased will be used in a manner that is consistent with 
     the requirements of clauses (i) and (ii) of section 
     404(b)(2)(B) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170c(b)(2)(B)) for 
     properties acquired, accepted, or from which a structure will 
     be removed pursuant to a project provided property 
     acquisition and relocation assistance under such section 
     404(b); and
       ``(ii) the amount of purchase offer is not less than the 
     greatest of--

       ``(I) the amount of the original purchase price of the 
     property, when purchased by the holder of the current policy 
     of flood insurance under this title;
       ``(II) the total amount owed, at the time the offer to 
     purchase is made, under any loan secured by a recorded 
     interest on the property;
       ``(III) an amount equal to the fair market value of the 
     property immediately before the most recent flood event 
     affecting the property''; and
       ``(IV) an amount equal to the replacement value of the 
     property immediately before the most recent flood event 
     affecting the property, except that this subclause shall 
     apply in the case only of a property for which the State or 
     community determines, and the Director concurs, that the fair 
     market value referred to in subclause (III) of the property 
     is less than the purchase price of a replacement primary 
     residence that is of comparable value, functionally 
     equivalent, and located in the same community or market area 
     but not in an area having special flood hazards''.

       (c) Waiver of Limitations on Assistance.--Section 1366(f) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104c(f)) is amended by striking paragraph (3) and inserting 
     the following new paragraph:
       ``(3) Waiver.--The Director may waive the dollar amount 
     limitations under paragraphs (1) and (2) for any State or 
     community--
       ``(A) for any 5-year period when a major disaster or 
     emergency declared by the President (pursuant to the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.)) as a result of flood conditions is in 
     effect with respect to areas in the State or community; or
       ``(B) whenever the Director determines that repetitive 
     claims properties are located within such State or community 
     and that waiver of the cost limitations is cost-effective and 
     in the best interests of the National Flood Insurance 
     Fund.''.
       (d) Penalties for Refusal To Mitigate and Fraudulent 
     Claims.--Section 1366 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4104c) is amended--
       (1) by striking subsection (k);
       (2) by redesignating subsection (j) as subsection (l); and
       (3) by inserting after subsection (i) the following new 
     subsections:
       ``(j) Increase to Actuarial Rates in Cases of Refusal to 
     Mitigate.--
       ``(1) In general.--In any case in which the owner of a 
     repetitive claims property refuses an offer of a State or 
     community to conduct, with respect to such property, 
     mitigation activities under subsection (e) under a mitigation 
     plan approved by the Director, the Director shall--
       ``(A) notify each holder of a recorded interest on the 
     property of such refusal; and
       ``(B) increase the chargeable risk premium rate for flood 
     insurance coverage under this title for the property to an 
     amount equal to the applicable estimated risk premium rate 
     for such area (or subdivision thereof) under section 
     1307(a)(1) and apply appropriate loss deductibles.
       ``(2) Appeals.--
       ``(A) Mitigation actions.--Any owner of a repetitive claims 
     property may appeal a determination of the Director to take 
     action under paragraph (1)(B) with respect to such property, 
     based only upon the following grounds:
       ``(i) As a result of such action, the owner of the property 
     will not be able to purchase a replacement primary residence 
     of comparable value and that is functionally equivalent.
       ``(ii) As a result of such action, the preservation or 
     maintenance of any prehistoric or historic district, site, 
     building, structure, or object included in, or eligible for 
     inclusion in, the National Register of historic places will 
     be interfered with, impaired, or disrupted.
       ``(iii) The flooding that resulted in the flood insurance 
     claims payments described in subsection (n)(2) for the 
     property resulted from significant actions by a third party 
     in violation of Federal, State, or local law, ordinance, or 
     regulation.
       ``(iv) In purchasing the property, the owner relied upon 
     flood insurance rate maps of the Federal Emergency Management 
     Agency that were current at the time and did not indicate 
     that the property was located in an area having special flood 
     hazards.
       ``(B) Procedure.--An appeal under this paragraph of a 
     determination of the Director shall be made by filing, with 
     the Director, a request for an appeal within 90 days after 
     receiving notice of such determination. Upon receiving the 
     request, the Director shall select, from a list of 
     independent third parties

[[Page 29835]]

     compiled by the Director for such purpose, a party to hear 
     such appeal. Within 90 days after filing of the request for 
     the appeal, such third party shall review the determination 
     of the Director and shall set aside such determination if the 
     third party determines that the grounds under subparagraph 
     (A) exist. During the pendency of an appeal under this 
     paragraph, the Director shall stay the applicability of the 
     rates established pursuant to paragraph (1).
       ``(C) Effect of final determination.--In an appeal under 
     this paragraph--
       ``(i) if a final determination is made that the grounds 
     under subparagraph (A) exist, the third party hearing such 
     appeal shall make a determination of how much to reduce the 
     chargeable risk premium rate for flood insurance coverage for 
     the property involved in the appeal from the amount required 
     under paragraph (1) and the Director shall promptly reduce 
     the chargeable risk premium rate for such property by such 
     amount; and
       ``(ii) if a final determination is made that the grounds 
     under subparagraph (A) do not exist, the Director shall 
     promptly increase the chargeable risk premium rate for such 
     property to the amount established pursuant to paragraph (1) 
     and shall collect from the property owner the amount 
     necessary to cover the stay of the applicability of such 
     increased rates during the pendency of the appeal.
       ``(D) Costs.--If the third party hearing an appeal under 
     this paragraph is compensated for such service, the costs of 
     such compensation shall be borne--
       ``(i) by the owner of the property requesting the appeal, 
     if the final determination in the appeal is that the grounds 
     under subparagraph (A) do not exist; and
       ``(ii) by the National Flood Mitigation Fund, if such final 
     determination is that the grounds under subparagraph (A) do 
     exist.
       ``(E) Report.--Not later than 6 months after the date of 
     the enactment of the Flood Insurance Reform Act of 2003, the 
     Director shall submit a report to the House of 
     Representatives and the Senate describing the rules, 
     procedures, and administration for appeals under this 
     paragraph, which shall be submitted together with the report 
     required under section 1362(g)(2)(E).
       ``(k) Discretionary Actions in Cases of Fraudulent 
     Claims.--If the Director determines that a fraudulent claim 
     was made under flood insurance coverage under this title for 
     a repetitive claims property, the Director may--
       ``(1) cancel the policy and deny the provision to such 
     policyholder of any new flood insurance coverage under this 
     title for the property; or
       ``(2) refuse to renew the policy with such policyholder 
     upon expiration and deny the provision of any new flood 
     insurance coverage under this title to such policyholder for 
     the property.''.
       (e) Coordination With States and Communities.--Section 1366 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
     is amended by adding at the end the following new subsection:
       ``(m) Coordination With States and Communities.--The 
     Director shall, in consultation and coordination with States 
     and communities:
       ``(1) Identification of repetitive claims properties.--
     Identify repetitive claims properties and properties at risk 
     of becoming repetitive claims properties.
       ``(2) Management of 100-year floodplain.--Take such actions 
     as are appropriate to encourage and improve participation of 
     owners of properties that are not located in areas having 
     special flood hazards but are located within the 100-year 
     floodplain.''.
       (f) Definition of Repetitive Claims Property.--Section 1366 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
     is amended by adding at the end the following new subsection:
       ``(n) Definitions.--For purposes of this section:
       ``(1) Community.--The term `community' means--
       ``(A) a political subdivision that--
       ``(i) has zoning and building code jurisdiction over a 
     particular area having special flood hazards; and
       ``(ii) is participating in the national flood insurance 
     program; or
       ``(B) a political subdivision of a State, or other 
     authority, that is designated to develop and administer a 
     mitigation plan and manage projects by political 
     subdivisions, all of which meet the requirements of 
     subparagraph (A).
       ``(2) Repetitive claims property.--The term `repetitive 
     claims property' means, without regard to the ownership of 
     the property, a property with respect to which claim payments 
     for losses have been made--
       ``(A) under flood insurance coverage under this title,
       ``(B) on more than one occasion within a 10-year period, 
     and
       ``(C) for which the cumulative value of the amount by which 
     such claims exceed the amount of any applicable deductible 
     under such coverage is $5,000 or more,
     The Director may, by regulation, further define subsets of 
     repetitive claims properties for purposes of subsection 
     (e)(4).''.
       (g) Funding.--Section 1367(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104d(b)) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4); and
       (2) by striking paragraph (1) and inserting the following 
     new paragraphs:
       ``(1) in each fiscal year, amounts from the National Flood 
     Insurance Fund not exceeding $20,000,000;
       ``(2) in each of fiscal years 2004, 2005, 2006, 2007, and 
     2008, in addition to amounts under paragraph (1), amounts 
     from the National Flood Insurance Fund not exceeding 
     $40,000,000, to remain available until expended, except 
     that--
       ``(A) such amounts shall be used only under section 1366 
     for mitigation activities for repetitive claims properties 
     (as such term is defined in section 1366(n)); and
       ``(B) notwithstanding any other provision of this title, 
     amounts made available pursuant to this paragraph shall not 
     be subject to offsetting collections through premium rates 
     for flood insurance coverage under this title; and''.

     SEC. 6. FEMA AUTHORITY TO FUND MITIGATION ACTIVITIES FOR 
                   INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.

       (a) In General.--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:


          ``grants for repetitive insurance claims properties

       ``Sec. 1323. (a) In General.--The Director may provide 
     funding for mitigation actions that reduce flood damages to 
     repetitive claims properties, but only if the Director 
     determines that--
       ``(1) such activities are in the best interest of the 
     National Flood Insurance Fund; and
       ``(2) such activities can not be funded under the program 
     under section 1366 because--
       ``(A) the requirements of section 1366(g) are not being met 
     by the State or community in which the property is located; 
     or
       ``(B) the State or community does not have the capacity to 
     manage such activities.
       ``(b) Priority for Worst-Case Properties.--In determining 
     properties for which funding is to be provided under this 
     section, the Director shall give priority based on the amount 
     of losses to the National Flood Insurance Fund that claims 
     for a property have caused or are reasonably expected to 
     cause.
       ``(c) Definition.--For purposes of this section, the term 
     `repetitive claims property' has the meaning given such term 
     in section 1366(n).''.
       (b) Availability of National Flood Insurance Fund 
     Amounts.--Section 1310(a) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4017(a)) is amended by adding at the end 
     the following new paragraph:
       ``(9) for funding, not to exceed $10,000,000 in any fiscal 
     year, for mitigation actions under section 1323, except that, 
     notwithstanding any other provision of this title, amounts 
     made available pursuant to this paragraph shall not be 
     subject to offsetting collections through premium rates for 
     flood insurance coverage under this title.''.

     SEC. 7. ACTUARIAL RATE PROPERTIES.

       (a) In General.--Section 1308 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking 
     subsection (c) and inserting the following new subsection:
       ``(c) Actuarial Rate Properties.--Subject only to the 
     limitations provided under paragraphs (1) and (2), the 
     chargeable rate shall not be less than the applicable 
     estimated risk premium rate for such area (or subdivision 
     thereof) under section 1307(a)(1) with respect to the 
     following properties:
       ``(1) Post-firm properties.--Any property the construction 
     or substantial improvement of which the Director determines 
     has been started after December 31, 1974, or started after 
     the effective date of the initial rate map published by the 
     Director under paragraph (2) of section 1360 for the area in 
     which such property is located, whichever is later, except 
     that the chargeable rate for properties under this paragraph 
     shall be subject to the limitation under subsection (e).
       ``(2) Properties refusing mitigation assistance.--Any 
     property for which the Director has taken action under 
     section 1362(g)(1) or 1366(i)(1).
       ``(3) Certain leased coastal and river properties.--Any 
     property leased from the Federal Government (including 
     residential and nonresidential properties) that the Director 
     determines is located on the river-facing side of any dike, 
     levee, or other riverine flood control structure, or seaward 
     of any seawall or other coastal flood control structure.''.
       (b) Inapplicability of Annual Limitations on Premium 
     Increases.--Section 1308(e) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4015(e)) is amended by striking 
     ``Notwithstanding'' and inserting ``Except with respect to 
     properties described under paragraph (2) or (3) of subsection 
     (c) and notwithstanding''.

     SEC. 8. ELECTRONIC DATABASE OF REPETITIVE CLAIMS PROPERTIES.

       Section 1364 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104a) is amended by adding at the end the 
     following new subsection:
       ``(d) Electronic Database of Repetitive Claims 
     Properties.--The Director may, if

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     the Director determines such action is feasible, establish 
     and maintain a database identifying by location and address 
     all repetitive claims properties (as such term is defined in 
     section 1366(n)), repetitive loss structures (as such term is 
     defined in section 1370), and severe repetitive loss 
     properties (as such term is defined in section 1362(b)). If 
     established, the Director shall make the database available 
     to the public in a format that may be searched 
     electronically. Such a database shall not include any 
     information regarding ownership of properties.''.

     SEC. 9. REPLACEMENT OF MOBILE HOMES ON ORIGINAL SITES.

       Section 1315 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4022) is amended by adding at the end the 
     following new subsection:
       ``(c) Replacement of Mobile Homes on Original Sites.--
       ``(1) Community participation.--The placement of any mobile 
     home on any site shall not affect the eligibility of any 
     community to participate in the flood insurance program under 
     this title and the Flood Disaster Protection Act of 1973 
     (notwithstanding that such placement may fail to comply with 
     any elevation or flood damage mitigation requirements), if--
       ``(A) such mobile home was previously located on such site;
       ``(B) such mobile home was relocated from such site because 
     of flooding that threatened or affected such site; and
       ``(C) such replacement is conducted not later than the 
     expiration of the 180-day period that begins upon the 
     subsidence (in the area of such site) of the body of water 
     that flooded to a level considered lower than flood levels.
       ``(2) Definition.--For purposes of this subsection, the 
     term `mobile home' has the meaning given such term in the law 
     of the State in which the mobile home is located.''.

     SEC. 10. REITERATION OF FEMA RESPONSIBILITY TO MAP MUDSLIDES.

       As directed in section 1360(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101(b)), the Director of 
     the Federal Emergency Management Agency is again directed to 
     accelerate the identification of risk zones within flood-
     prone and mudslide-prone areas, as provided by subsection 
     (a)(2) of such section 1360, in order to make known the 
     degree of hazard within each such zone at the earliest 
     possible date.