[Congressional Record (Bound Edition), Volume 158 (2012), Part 5]
[House]
[Pages 6635-6647]
[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. 5652

                       Offered By: Mr. Van Hollen

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Balanced Approach to Replace 
     the Sequester Act of 2012 for Fiscal Year 2013''.

     SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.

    TITLE I--BUDGET PROCESS AMENDMENTS TO REPLACE FISCAL YEAR 2013 
                             SEQUESTRATION

Sec. 101. Repeal and replace the 2013 sequester.
Sec. 102. Protecting veterans programs from sequester.

                     TITLE II--AGRICULTURAL SAVINGS

Sec. 201. One-year extension of agricultural commodity programs, except 
              direct payment programs.

                   TITLE III--FLOOD INSURANCE REFORM

Sec. 301. Short title.
Sec. 302. Extensions.
Sec. 303. Mandatory purchase.
Sec. 304. Reforms of coverage terms.
Sec. 305. Reforms of premium rates.
Sec. 306. Technical Mapping Advisory Council.
Sec. 307. FEMA incorporation of new mapping protocols.
Sec. 308. Treatment of levees.
Sec. 309. Privatization initiatives.
Sec. 310. FEMA annual report on insurance program.
Sec. 311. Mitigation assistance.
Sec. 312. Notification to homeowners regarding mandatory purchase 
              requirement applicability and rate phase-ins.
Sec. 313. Notification to members of congress of flood map revisions 
              and updates.
Sec. 314. Notification and appeal of map changes; notification to 
              communities of establishment of flood elevations.
Sec. 315. Notification to tenants of availability of contents 
              insurance.
Sec. 316. Notification to policy holders regarding direct management of 
              policy by FEMA.
Sec. 317. Notice of availability of flood insurance and escrow in RESPA 
              good faith estimate.
Sec. 318. Reimbursement for costs incurred by homeowners and 
              communities obtaining letters of map amendment or 
              revision.
Sec. 319. Enhanced communication with certain communities during map 
              updating process.
Sec. 320. Notification to residents newly included in flood hazard 
              areas.
Sec. 321. Treatment of swimming pool enclosures outside of hurricane 
              season.
Sec. 322. Information regarding multiple perils claims.
Sec. 323. FEMA authority to reject transfer of policies.
Sec. 324. Appeals.
Sec. 325. Reserve fund.
Sec. 326. CDBG eligibility for flood insurance outreach activities and 
              community building code administration grants.
Sec. 327. Technical corrections.
Sec. 328. Requiring competition for national flood insurance program 
              policies.
Sec. 329. Studies of voluntary community-based flood insurance options.
Sec. 330. Report on inclusion of building codes in floodplain 
              management criteria.
Sec. 331. Study on graduated risk.
Sec. 332. Report on flood-in-progress determination.
Sec. 333. Study on repaying flood insurance debt.
Sec. 334. No cause of action.
Sec. 335. Authority for the corps of engineers to provide specialized 
              or technical services.

                    TITLE IV--OIL AND GAS SUBSIDIES

Sec. 401. Limitation on section 199 deduction attributable to oil, 
              natural gas, or primary products thereof.
Sec. 402. Prohibition on using last-in, first-out accounting for major 
              integrated oil companies.
Sec. 403. Modifications of foreign tax credit rules applicable to major 
              integrated oil companies which are dual capacity 
              taxpayers.

                       TITLE V--THE BUFFETT RULE

Sec. 501. Fair share tax on high-income taxpayers.

       TITLE VI--RETIREMENT CONTRIBUTIONS FOR MEMBERS OF CONGRESS

Sec. 601. Retirement contributions.

    TITLE I--BUDGET PROCESS AMENDMENTS TO REPLACE FISCAL YEAR 2013 
                             SEQUESTRATION

     SEC. 101. REPEAL AND REPLACE THE 2013 SEQUESTER.

       (a) Elimination of the Fiscal Year 2013 Sequestration for 
     Discretionary Spending.--Section 251A(7)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 is repealed.
       (b) Elimination of the Fiscal Year 2013 Sequestration for 
     Direct Spending.--Any sequestration order issued by the 
     President under the Balanced Budget and Emergency Deficit 
     Control Act of 1985 to carry out reductions to direct 
     spending for fiscal year 2013 pursuant to section 251A of 
     such Act shall have no force or effect.
       (c) Savings.--The savings set forth by the enactment of 
     title II shall achieve the savings that would otherwise have 
     occurred as a result of the sequestration under section 251A 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985.

     SEC. 102. PROTECTING VETERANS PROGRAMS FROM SEQUESTER.

       Section 256(e)(2)(E) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is repealed.

                     TITLE II--AGRICULTURAL SAVINGS

     SEC. 201. ONE-YEAR EXTENSION OF AGRICULTURAL COMMODITY 
                   PROGRAMS, EXCEPT DIRECT PAYMENT PROGRAMS.

       (a) Extension.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, the authorities 
     provided by each provision of title I of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 1651) and each amendment made by that title (and for 
     mandatory programs at such funding levels), as in effect on 
     September 30, 2012, shall continue, and the Secretary of 
     Agriculture shall carry out the authorities, until September 
     30, 2013.
       (b) Termination of Direct Payment Programs.--
       (1) Covered commodities.--The extension provided by 
     subsection (a) shall not apply with respect to the direct 
     payment program under section 1103 of the Food, Conservation, 
     and Energy Act of 2008 (7 U.S.C. 8713).
       (2) Peanuts.--The extension provided by subsection (a) 
     shall not apply with respect to the direct payment program 
     under section 1303 of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 7953).
       (c) Effective Date.--This section shall take effect on the 
     earlier of--
       (1) the date of the enactment of this Act; and
       (2) September 30, 2012.

[[Page 6636]]



                   TITLE III--FLOOD INSURANCE REFORM

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Flood Insurance Reform Act 
     of 2012''.

     SEC. 302. EXTENSIONS.

       (a) Extension of Program.--Section 1319 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended by 
     striking ``the earlier of the date of the enactment into law 
     of an Act that specifically amends the date specified in this 
     section or May 31, 2012'' and inserting ``September 30, 
     2016''.
       (b) Extension of Financing.--Section 1309(a) of such Act 
     (42 U.S.C. 4016(a)) is amended by striking ``the earlier of 
     the date of the enactment into law of an Act that 
     specifically amends the date specified in this section or May 
     31, 2012'' and inserting ``September 30, 2016''.

     SEC. 303. MANDATORY PURCHASE.

       (a) Authority To Temporarily Suspend Mandatory Purchase 
     Requirement.--
       (1) In general.--Section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding 
     at the end the following new subsection:
       ``(i) Authority To Temporarily Suspend Mandatory Purchase 
     Requirement.--
       ``(1) Finding by administrator that area is an eligible 
     area.--For any area, upon a request submitted to the 
     Administrator by a local government authority having 
     jurisdiction over any portion of the area, the Administrator 
     shall make a finding of whether the area is an eligible area 
     under paragraph (3). If the Administrator finds that such 
     area is an eligible area, the Administrator shall, in the 
     discretion of the Administrator, designate a period during 
     which such finding shall be effective, which shall not be 
     longer in duration than 12 months.
       ``(2) Suspension of mandatory purchase requirement.--If the 
     Administrator makes a finding under paragraph (1) that an 
     area is an eligible area under paragraph (3), during the 
     period specified in the finding, the designation of such 
     eligible area as an area having special flood hazards shall 
     not be effective for purposes of subsections (a), (b), and 
     (e) of this section, and section 202(a) of this Act. Nothing 
     in this paragraph may be construed to prevent any lender, 
     servicer, regulated lending institution, Federal agency 
     lender, the Federal National Mortgage Association, or the 
     Federal Home Loan Mortgage Corporation, at the discretion of 
     such entity, from requiring the purchase of flood insurance 
     coverage in connection with the making, increasing, 
     extending, or renewing of a loan secured by improved real 
     estate or a mobile home located or to be located in such 
     eligible area during such period or a lender or servicer from 
     purchasing coverage on behalf of a borrower pursuant to 
     subsection (e).
       ``(3) Eligible areas.--An eligible area under this 
     paragraph is an area that is designated or will, pursuant to 
     any issuance, revision, updating, or other change in flood 
     insurance maps that takes effect on or after the date of the 
     enactment of the Flood Insurance Reform Act of 2012, become 
     designated as an area having special flood hazards and that 
     meets any one of the following 3 requirements:
       ``(A) Areas with no history of special flood hazards.--The 
     area does not include any area that has ever previously been 
     designated as an area having special flood hazards.
       ``(B) Areas with flood protection systems under 
     improvements.--The area was intended to be protected by a 
     flood protection system--
       ``(i) that has been decertified, or is required to be 
     certified, as providing protection for the 100-year frequency 
     flood standard;
       ``(ii) that is being improved, constructed, or 
     reconstructed; and
       ``(iii) for which the Administrator has determined 
     measurable progress toward completion of such improvement, 
     construction, reconstruction is being made and toward 
     securing financial commitments sufficient to fund such 
     completion.
       ``(C) Areas for which appeal has been filed.--An area for 
     which a community has appealed designation of the area as 
     having special flood hazards in a timely manner under section 
     1363.
       ``(4) Extension of delay.--Upon a request submitted by a 
     local government authority having jurisdiction over any 
     portion of the eligible area, the Administrator may extend 
     the period during which a finding under paragraph (1) shall 
     be effective, except that--
       ``(A) each such extension under this paragraph shall not be 
     for a period exceeding 12 months; and
       ``(B) for any area, the cumulative number of such 
     extensions may not exceed 2.
       ``(5) Additional extension for communities making more than 
     adequate progress on flood protection system.--
       ``(A) Extension.--
       ``(i) Authority.--Except as provided in subparagraph (B), 
     in the case of an eligible area for which the Administrator 
     has, pursuant to paragraph (4), extended the period of 
     effectiveness of the finding under paragraph (1) for the 
     area, upon a request submitted by a local government 
     authority having jurisdiction over any portion of the 
     eligible area, if the Administrator finds that more than 
     adequate progress has been made on the construction of a 
     flood protection system for such area, as determined in 
     accordance with the last sentence of section 1307(e) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4014(e)), the 
     Administrator may, in the discretion of the Administrator, 
     further extend the period during which the finding under 
     paragraph (1) shall be effective for such area for an 
     additional 12 months.
       ``(ii) Limit.-- For any eligible area, the cumulative 
     number of extensions under this subparagraph may not exceed 
     2.
       ``(B) Exclusion for new mortgages.--
       ``(i) Exclusion.--Any extension under subparagraph (A) of 
     this paragraph of a finding under paragraph (1) shall not be 
     effective with respect to any excluded property after the 
     origination, increase, extension, or renewal of the loan 
     referred to in clause (ii)(II) for the property.
       ``(ii) Excluded properties.--For purposes of this 
     subparagraph, the term `excluded property' means any improved 
     real estate or mobile home--

       ``(I) that is located in an eligible area; and
       ``(II) for which, during the period that any extension 
     under subparagraph (A) of this paragraph of a finding under 
     paragraph (1) is otherwise in effect for the eligible area in 
     which such property is located--

       ``(aa) a loan that is secured by the property is 
     originated; or
       ``(bb) any existing loan that is secured by the property is 
     increased, extended, or renewed.
       ``(6) Rule of construction.--Nothing in this subsection may 
     be construed to affect the applicability of a designation of 
     any area as an area having special flood hazards for purposes 
     of the availability of flood insurance coverage, criteria for 
     land management and use, notification of flood hazards, 
     eligibility for mitigation assistance, or any other purpose 
     or provision not specifically referred to in paragraph (2).
       ``(7) Reports.--The Administrator shall, in each annual 
     report submitted pursuant to section 1320, include 
     information identifying each finding under paragraph (1) by 
     the Administrator during the preceding year that an area is 
     an area having special flood hazards, the basis for each such 
     finding, any extensions pursuant to paragraph (4) of the 
     periods of effectiveness of such findings, and the reasons 
     for such extensions.''.
       (2) No refunds.--Nothing in this subsection or the 
     amendments made by this subsection may be construed to 
     authorize or require any payment or refund for flood 
     insurance coverage purchased for any property that covered 
     any period during which such coverage is not required for the 
     property pursuant to the applicability of the amendment made 
     by paragraph (1).
       (b) Termination of Force-Placed Insurance.--Section 102(e) 
     of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4012a(e)) is amended--
       (1) in paragraph (2), by striking ``insurance.'' and 
     inserting ``insurance, including premiums or fees incurred 
     for coverage beginning on the date on which flood insurance 
     coverage lapsed or did not provide a sufficient coverage 
     amount.'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (5) and 6), respectively; and
       (3) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) Termination of force-placed insurance.--Within 30 
     days of receipt by the lender or servicer of a confirmation 
     of a borrower's existing flood insurance coverage, the lender 
     or servicer shall--
       ``(A) terminate the force-placed insurance; and
       ``(B) refund to the borrower all force-placed insurance 
     premiums paid by the borrower during any period during which 
     the borrower's flood insurance coverage and the force-placed 
     flood insurance coverage were each in effect, and any related 
     fees charged to the borrower with respect to the force-placed 
     insurance during such period.
       ``(4) Sufficiency of demonstration.--For purposes of 
     confirming a borrower's existing flood insurance coverage, a 
     lender or servicer for a loan shall accept from the borrower 
     an insurance policy declarations page that includes the 
     existing flood insurance policy number and the identity of, 
     and contact information for, the insurance company or 
     agent.''.
       (c) Use of Private Insurance to Satisfy Mandatory Purchase 
     Requirement.--Section 102(b) of the Flood Disaster Protection 
     Act of 1973 (42 U.S.C. 4012a(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``lending institutions not to make'' and 
     inserting ``lending institutions--
       ``(A) not to make'';
       (B) in subparagraph (A), as designated by subparagraph (A) 
     of this paragraph, by striking ``less.'' and inserting 
     ``less; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(B) to accept private flood insurance as satisfaction of 
     the flood insurance coverage requirement under subparagraph 
     (A) if the coverage provided by such private flood insurance 
     meets the requirements for coverage under such 
     subparagraph.'';
       (2) in paragraph (2), by inserting after ``provided in 
     paragraph (1).'' the following new sentence: ``Each Federal 
     agency lender shall accept private flood insurance as 
     satisfaction of the flood insurance coverage requirement 
     under the preceding sentence if the flood insurance coverage 
     provided by

[[Page 6637]]

     such private flood insurance meets the requirements for 
     coverage under such sentence.'';
       (3) in paragraph (3), in the matter following subparagraph 
     (B), by adding at the end the following new sentence: ``The 
     Federal National Mortgage Association and the Federal Home 
     Loan Mortgage Corporation shall accept private flood 
     insurance as satisfaction of the flood insurance coverage 
     requirement under the preceding sentence if the flood 
     insurance coverage provided by such private flood insurance 
     meets the requirements for coverage under such sentence.''; 
     and
       (4) by adding at the end the following new paragraph:
       ``(5) Private flood insurance defined.--In this subsection, 
     the term `private flood insurance' means a contract for flood 
     insurance coverage allowed for sale under the laws of any 
     State.''.

     SEC. 304. REFORMS OF COVERAGE TERMS.

       (a) Minimum Deductibles for Claims.--Section 1312 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4019) is 
     amended--
       (1) by striking ``The Director is'' and inserting the 
     following: ``(a) In General.--The Administrator is''; and
       (2) by adding at the end the following:
       ``(b) Minimum Annual Deductibles.--
       ``(1) Subsidized rate properties.--For any structure that 
     is covered by flood insurance under this title, and for which 
     the chargeable rate for such coverage is less than the 
     applicable estimated risk premium rate under section 
     1307(a)(1) for the area (or subdivision thereof) in which 
     such structure is located, the minimum annual deductible for 
     damage to or loss of such structure shall be $2,000.
       ``(2) Actuarial rate properties.--For any structure that is 
     covered by flood insurance under this title, for which the 
     chargeable rate for such coverage is not less than the 
     applicable estimated risk premium rate under section 
     1307(a)(1) for the area (or subdivision thereof) in which 
     such structure is located, the minimum annual deductible for 
     damage to or loss of such structure shall be $1,000.''.
       (b) Clarification of Residential and Commercial Coverage 
     Limits.--Section 1306(b) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``in the case of any residential property'' 
     and inserting ``in the case of any residential building 
     designed for the occupancy of from one to four families''; 
     and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance so as to 
     enable such insured or applicant to receive coverage up to a 
     total amount (including such limits specified in paragraph 
     (1)(A)(i)) of $250,000'' and inserting ``shall be made 
     available, with respect to any single such building, up to an 
     aggregate liability (including such limits specified in 
     paragraph (1)(A)(i)) of $250,000''; and
       (2) in paragraph (4)--
       (A) by striking ``in the case of any nonresidential 
     property, including churches,'' and inserting ``in the case 
     of any nonresidential building, including a church,''; and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance, in respect to 
     any single structure, up to a total amount (including such 
     limit specified in subparagraph (B) or (C) of paragraph (1), 
     as applicable) of $500,000 for each structure and $500,000 
     for any contents related to each structure'' and inserting 
     ``shall be made available with respect to any single such 
     building, up to an aggregate liability (including such limits 
     specified in subparagraph (B) or (C) of paragraph (1), as 
     applicable) of $500,000, and coverage shall be made available 
     up to a total of $500,000 aggregate liability for contents 
     owned by the building owner and $500,000 aggregate liability 
     for each unit within the building for contents owned by the 
     tenant''.
       (c) Indexing of Maximum Coverage Limits.--Subsection (b) of 
     section 1306 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4013(b)) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and'';
       (3) by redesignating paragraph (5) as paragraph (7); and
       (4) by adding at the end the following new paragraph:
       ``(8) each of the dollar amount limitations under 
     paragraphs (2), (3), (4), (5), and (6) shall be adjusted 
     effective on the date of the enactment of the Flood Insurance 
     Reform Act of 2012, such adjustments shall be calculated 
     using the percentage change, over the period beginning on 
     September 30, 1994, and ending on such date of enactment, in 
     such inflationary index as the Administrator shall, by 
     regulation, specify, and the dollar amount of such adjustment 
     shall be rounded to the next lower dollar; and the 
     Administrator shall cause to be published in the Federal 
     Register the adjustments under this paragraph to such dollar 
     amount limitations; except that in the case of coverage for a 
     property that is made available, pursuant to this paragraph, 
     in an amount that exceeds the limitation otherwise applicable 
     to such coverage as specified in paragraph (2), (3), (4), 
     (5), or (6), the total of such coverage shall be made 
     available only at chargeable rates that are not less than the 
     estimated premium rates for such coverage determined in 
     accordance with section 1307(a)(1).''.
       (d) Optional Coverage for Loss of Use of Personal Residence 
     and Business Interruption.--Subsection (b) of section 1306 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), 
     as amended by the preceding provisions of this section, is 
     further amended by inserting after paragraph (4) the 
     following new paragraphs:
       ``(5) the Administrator may provide that, in the case of 
     any residential property, each renewal or new contract for 
     flood insurance coverage may provide not more than $5,000 
     aggregate liability per dwelling unit for any necessary 
     increases in living expenses incurred by the insured when 
     losses from a flood make the residence unfit to live in, 
     except that--
       ``(A) purchase of such coverage shall be at the option of 
     the insured;
       ``(B) any such coverage shall be made available only at 
     chargeable rates that are not less than the estimated premium 
     rates for such coverage determined in accordance with section 
     1307(a)(1); and
       ``(C) the Administrator may make such coverage available 
     only if the Administrator makes a determination and causes 
     notice of such determination to be published in the Federal 
     Register that--
       ``(i) a competitive private insurance market for such 
     coverage does not exist; and
       ``(ii) the national flood insurance program has the 
     capacity to make such coverage available without borrowing 
     funds from the Secretary of the Treasury under section 1309 
     or otherwise;
       ``(6) the Administrator may provide that, in the case of 
     any commercial property or other residential property, 
     including multifamily rental property, coverage for losses 
     resulting from any partial or total interruption of the 
     insured's business caused by damage to, or loss of, such 
     property from a flood may be made available to every insured 
     upon renewal and every applicant, up to a total amount of 
     $20,000 per property, except that--
       ``(A) purchase of such coverage shall be at the option of 
     the insured;
       ``(B) any such coverage shall be made available only at 
     chargeable rates that are not less than the estimated premium 
     rates for such coverage determined in accordance with section 
     1307(a)(1); and
       ``(C) the Administrator may make such coverage available 
     only if the Administrator makes a determination and causes 
     notice of such determination to be published in the Federal 
     Register that--
       ``(i) a competitive private insurance market for such 
     coverage does not exist; and
       ``(ii) the national flood insurance program has the 
     capacity to make such coverage available without borrowing 
     funds from the Secretary of the Treasury under section 1309 
     or otherwise;''.
       (e) Payment of Premiums in Installments for Residential 
     Properties.--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:
       ``(d) Payment of Premiums in Installments for Residential 
     Properties.--
       ``(1) Authority.--In addition to any other terms and 
     conditions under subsection (a), such regulations shall 
     provide that, in the case of any residential property, 
     premiums for flood insurance coverage made available under 
     this title for such property may be paid in installments.
       ``(2) Limitations.--In implementing the authority under 
     paragraph (1), the Administrator may establish increased 
     chargeable premium rates and surcharges, and deny coverage 
     and establish such other sanctions, as the Administrator 
     considers necessary to ensure that insureds purchase, pay 
     for, and maintain coverage for the full term of a contract 
     for flood insurance coverage or to prevent insureds from 
     purchasing coverage only for periods during a year when risk 
     of flooding is comparatively higher or canceling coverage for 
     periods when such risk is comparatively lower.''.
       (f) Effective Date of Policies Covering Properties Affected 
     by Floods in Progress.--Paragraph (1) of section 1306(c) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)) 
     is amended by adding after the period at the end the 
     following: ``With respect to any flood that has commenced or 
     is in progress before the expiration of such 30-day period, 
     such flood insurance coverage for a property shall take 
     effect upon the expiration of such 30-day period and shall 
     cover damage to such property occurring after the expiration 
     of such period that results from such flood, but only if the 
     property has not suffered damage or loss as a result of such 
     flood before the expiration of such 30-day period.''.

     SEC. 305. REFORMS OF PREMIUM RATES.

       (a) Increase in Annual Limitation on Premium Increases.--
     Section 1308(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended by striking ``10 percent'' and 
     inserting ``20 percent''.
       (b) Phase-In of Rates for Certain Properties in Newly 
     Mapped Areas.--
       (1) In general.--Section 1308 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015) is amended--

[[Page 6638]]

       (A) in subsection (a), in the matter preceding paragraph 
     (1), by inserting ``or notice'' after ``prescribe by 
     regulation'';
       (B) in subsection (c), by inserting ``and subsection (g)'' 
     before the first comma; and
       (C) by adding at the end the following new subsection:
       ``(g) 5-Year Phase-In of Flood Insurance Rates for Certain 
     Properties in Newly Mapped Areas.--
       ``(1) 5-year phase-in period.--Notwithstanding subsection 
     (c) or any other provision of law relating to chargeable risk 
     premium rates for flood insurance coverage under this title, 
     in the case of any area that was not previously designated as 
     an area having special flood hazards and that, pursuant to 
     any issuance, revision, updating, or other change in flood 
     insurance maps, becomes designated as such an area, during 
     the 5-year period that begins, except as provided in 
     paragraph (2), upon the date that such maps, as issued, 
     revised, updated, or otherwise changed, become effective, the 
     chargeable premium rate for flood insurance under this title 
     with respect to any covered property that is located within 
     such area shall be the rate described in paragraph (3).
       ``(2) Applicability to preferred risk rate areas.--In the 
     case of any area described in paragraph (1) that consists of 
     or includes an area that, as of date of the effectiveness of 
     the flood insurance maps for such area referred to in 
     paragraph (1) as so issued, revised, updated, or changed, is 
     eligible for any reason for preferred risk rate method 
     premiums for flood insurance coverage and was eligible for 
     such premiums as of the enactment of the Flood Insurance 
     Reform Act of 2012, the 5-year period referred to in 
     paragraph (1) for such area eligible for preferred risk rate 
     method premiums shall begin upon the expiration of the period 
     during which such area is eligible for such preferred risk 
     rate method premiums.
       ``(3) Phase-in of full actuarial rates.--With respect to 
     any area described in paragraph (1), the chargeable risk 
     premium rate for flood insurance under this title for a 
     covered property that is located in such area shall be--
       ``(A) for the first year of the 5-year period referred to 
     in paragraph (1), the greater of--
       ``(i) 20 percent of the chargeable risk premium rate 
     otherwise applicable under this title to the property; and
       ``(ii) in the case of any property that, as of the 
     beginning of such first year, is eligible for preferred risk 
     rate method premiums for flood insurance coverage, such 
     preferred risk rate method premium for the property;
       ``(B) for the second year of such 5-year period, 40 percent 
     of the chargeable risk premium rate otherwise applicable 
     under this title to the property;
       ``(C) for the third year of such 5-year period, 60 percent 
     of the chargeable risk premium rate otherwise applicable 
     under this title to the property;
       ``(D) for the fourth year of such 5-year period, 80 percent 
     of the chargeable risk premium rate otherwise applicable 
     under this title to the property; and
       ``(E) for the fifth year of such 5-year period, 100 percent 
     of the chargeable risk premium rate otherwise applicable 
     under this title to the property.
       ``(4) Covered properties.--For purposes of the subsection, 
     the term `covered property' means any residential property 
     occupied by its owner or a bona fide tenant as a primary 
     residence.''.
       (2) Regulation or notice.--The Administrator of the Federal 
     Emergency Management Agency shall issue an interim final rule 
     or notice to implement this subsection and the amendments 
     made by this subsection as soon as practicable after the date 
     of the enactment of this Act.
       (c) Phase-In of Actuarial Rates for Certain Properties.--
       (1) In general.--Section 1308(c) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
       (A) by redesignating paragraph (2) as paragraph (7); and
       (B) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) Commercial properties.--Any nonresidential property.
       ``(3) Second homes and vacation homes.--Any residential 
     property that is not the primary residence of any individual.
       ``(4) Homes sold to new owners.--Any single family property 
     that--
       ``(A) has been constructed or substantially improved and 
     for which such construction or improvement was started, as 
     determined by the Administrator, before December 31, 1974, or 
     before the effective date of the initial rate map published 
     by the Administrator under paragraph (2) of section 1360(a) 
     for the area in which such property is located, whichever is 
     later; and
       ``(B) is purchased after the effective date of this 
     paragraph, pursuant to section 345(c)(3)(A) of the Flood 
     Insurance Reform Act of 2012.
       ``(5) Homes damaged or improved.--Any property that, on or 
     after the date of the enactment of the Flood Insurance Reform 
     Act of 2012, has experienced or sustained--
       ``(A) substantial flood damage exceeding 50 percent of the 
     fair market value of such property; or
       ``(B) substantial improvement exceeding 30 percent of the 
     fair market value of such property.
       ``(6) Homes with multiple claims.--Any severe repetitive 
     loss property (as such term is defined in section 
     1366(j)).''.
       (2) Technical amendments.--Section 1308 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--
       (A) in subsection (c)--
       (i) in the matter preceding paragraph (1), by striking 
     ``the limitations provided under paragraphs (1) and (2)'' and 
     inserting ``subsection (e)''; and
       (ii) in paragraph (1), by striking ``, except'' and all 
     that follows through ``subsection (e)''; and
       (B) in subsection (e), by striking ``paragraph (2) or (3)'' 
     and inserting ``paragraph (7)''.
       (3) Effective date and transition.--
       (A) Effective date.--The amendments made by paragraphs (1) 
     and (2) shall apply beginning upon the expiration of the 12-
     month period that begins on the date of the enactment of this 
     Act, except as provided in subparagraph (B) of this 
     paragraph.
       (B) Transition for properties covered by flood insurance 
     upon effective date.--
       (i) Increase of rates over time.--In the case of any 
     property described in paragraph (2), (3), (4), (5), or (6) of 
     section 1308(c) of the National Flood Insurance Act of 1968, 
     as amended by paragraph (1) of this subsection, that, as of 
     the effective date under subparagraph (A) of this paragraph, 
     is covered under a policy for flood insurance made available 
     under the national flood insurance program for which the 
     chargeable premium rates are less than the applicable 
     estimated risk premium rate under section 1307(a)(1) of such 
     Act for the area in which the property is located, the 
     Administrator of the Federal Emergency Management Agency 
     shall increase the chargeable premium rates for such property 
     over time to such applicable estimated risk premium rate 
     under section 1307(a)(1).
       (ii) Amount of annual increase.--Such increase shall be 
     made by increasing the chargeable premium rates for the 
     property (after application of any increase in the premium 
     rates otherwise applicable to such property), once during the 
     12-month period that begins upon the effective date under 
     subparagraph (A) of this paragraph and once every 12 months 
     thereafter until such increase is accomplished, by 20 percent 
     (or such lesser amount as may be necessary so that the 
     chargeable rate does not exceed such applicable estimated 
     risk premium rate or to comply with clause (iii)).
       (iii) Properties subject to phase-in and annual 
     increases.--In the case of any pre-FIRM property (as such 
     term is defined in section 578(b) of the National Flood 
     Insurance Reform Act of 1974), the aggregate increase, during 
     any 12-month period, in the chargeable premium rate for the 
     property that is attributable to this subparagraph or to an 
     increase described in section 1308(e) of the National Flood 
     Insurance Act of 1968 may not exceed 20 percent.
       (iv) Full actuarial rates.--The provisions of paragraphs 
     (2), (3), (4), (5), and (6) of such section 1308(c) shall 
     apply to such a property upon the accomplishment of the 
     increase under this subparagraph and thereafter.
       (d) Prohibition of Extension of Subsidized Rates to Lapsed 
     Policies.--Section 1308 of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4015), as amended by the preceding 
     provisions of this subtitle, is further amended--
       (1) in subsection (e), by inserting ``or subsection (h)'' 
     after ``subsection (c)''; and
       (2) by adding at the end the following new subsection:
       ``(h) Prohibition of Extension of Subsidized Rates to 
     Lapsed Policies.--Notwithstanding any other provision of law 
     relating to chargeable risk premium rates for flood insurance 
     coverage under this title, the Administrator shall not 
     provide flood insurance coverage under this title for any 
     property for which a policy for such coverage for the 
     property has previously lapsed in coverage as a result of the 
     deliberate choice of the holder of such policy, at a rate 
     less than the applicable estimated risk premium rates for the 
     area (or subdivision thereof) in which such property is 
     located.''.
       (e) Recognition of State and Local Funding for 
     Construction, Reconstruction, and Improvement of Flood 
     Protection Systems in Determination of Rates.--
       (1) In general.--Section 1307 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4014) is amended--
       (A) in subsection (e)--
       (i) in the first sentence, by striking ``construction of a 
     flood protection system'' and inserting ``construction, 
     reconstruction, or improvement of a flood protection system 
     (without respect to the level of Federal investment or 
     participation)''; and
       (ii) in the second sentence--

       (I) by striking ``construction of a flood protection 
     system'' and inserting ``construction, reconstruction, or 
     improvement of a flood protection system''; and
       (II) by inserting ``based on the present value of the 
     completed system'' after ``has been expended''; and

       (B) in subsection (f)--
       (i) in the first sentence in the matter preceding paragraph 
     (1), by inserting ``(without

[[Page 6639]]

     respect to the level of Federal investment or 
     participation)'' before the period at the end;
       (ii) in the third sentence in the matter preceding 
     paragraph (1), by inserting ``, whether coastal or 
     riverine,'' after ``special flood hazard''; and
       (iii) in paragraph (1), by striking ``a Federal agency in 
     consultation with the local project sponsor'' and inserting 
     ``the entity or entities that own, operate, maintain, or 
     repair such system''.
       (2) Regulations.--The Administrator of the Federal 
     Emergency Management Agency shall promulgate regulations to 
     implement this subsection and the amendments made by this 
     subsection as soon as practicable, but not more than 18 
     months after the date of the enactment of this Act. Paragraph 
     (3) may not be construed to annul, alter, affect, authorize 
     any waiver of, or establish any exception to, the requirement 
     under the preceding sentence.

     SEC. 306. TECHNICAL MAPPING ADVISORY COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (in this 
     section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of--
       (A) the Administrator of the Federal Emergency Management 
     Agency (in this section referred to as the 
     ``Administrator''), or the designee thereof;
       (B) the Director of the United States Geological Survey of 
     the Department of the Interior, or the designee thereof;
       (C) the Under Secretary of Commerce for Oceans and 
     Atmosphere, or the designee thereof;
       (D) the commanding officer of the United States Army Corps 
     of Engineers, or the designee thereof;
       (E) the chief of the Natural Resources Conservation Service 
     of the Department of Agriculture, or the designee thereof;
       (F) the Director of the United States Fish and Wildlife 
     Service of the Department of the Interior, or the designee 
     thereof;
       (G) the Assistant Administrator for Fisheries of the 
     National Oceanic and Atmospheric Administration of the 
     Department of Commerce, or the designee thereof; and
       (H) 14 additional members to be appointed by the 
     Administrator of the Federal Emergency Management Agency, who 
     shall be--
       (i) an expert in data management;
       (ii) an expert in real estate;
       (iii) an expert in insurance;
       (iv) a member of a recognized regional flood and storm 
     water management organization;
       (v) a representative of a State emergency management agency 
     or association or organization for such agencies;
       (vi) a member of a recognized professional surveying 
     association or organization;
       (vii) a member of a recognized professional mapping 
     association or organization;
       (viii) a member of a recognized professional engineering 
     association or organization;
       (ix) a member of a recognized professional association or 
     organization representing flood hazard determination firms;
       (x) a representative of State national flood insurance 
     coordination offices;
       (xi) representatives of two local governments, at least one 
     of whom is a local levee flood manager or executive, 
     designated by the Federal Emergency Management Agency as 
     Cooperating Technical Partners; and
       (xii) representatives of two State governments designated 
     by the Federal Emergency Management Agency as Cooperating 
     Technical States.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps. In appointing 
     members under paragraph (1)(H), the Administrator shall 
     ensure that the membership of the Council has a balance of 
     Federal, State, local, and private members, and includes an 
     adequate number of representatives from the States with 
     coastline on the Gulf of Mexico and other States containing 
     areas identified by the Administrator of the Federal 
     Emergency Management Agency as at high-risk for flooding or 
     special flood hazard areas.
       (c) Duties.--
       (1) New mapping standards.--Not later than the expiration 
     of the 12-month period beginning upon the date of the 
     enactment of this Act, the Council shall develop and submit 
     to the Administrator and the Congress proposed new mapping 
     standards for 100-year flood insurance rate maps used under 
     the national flood insurance program under the National Flood 
     Insurance Act of 1968. In developing such proposed standards 
     the Council shall--
       (A) ensure that the flood insurance rate maps reflect true 
     risk, including graduated risk that better reflects the 
     financial risk to each property; such reflection of risk 
     should be at the smallest geographic level possible (but not 
     necessarily property-by-property) to ensure that communities 
     are mapped in a manner that takes into consideration 
     different risk levels within the community;
       (B) ensure the most efficient generation, display, and 
     distribution of flood risk data, models, and maps where 
     practicable through dynamic digital environments using 
     spatial database technology and the Internet;
       (C) ensure that flood insurance rate maps reflect current 
     hydrologic and hydraulic data, current land use, and 
     topography, incorporating the most current and accurate 
     ground and bathymetric elevation data;
       (D) determine the best ways to include in such flood 
     insurance rate maps levees, decertified levees, and areas 
     located below dams, including determining a methodology for 
     ensuring that decertified levees and other protections are 
     included in flood insurance rate maps and their corresponding 
     flood zones reflect the level of protection conferred;
       (E) consider how to incorporate restored wetlands and other 
     natural buffers into flood insurance rate maps, which may 
     include wetlands, groundwater recharge areas, erosion zones, 
     meander belts, endangered species habitat, barrier islands 
     and shoreline buffer features, riparian forests, and other 
     features;
       (F) consider whether to use vertical positioning (as 
     defined by the Administrator) for flood insurance rate maps;
       (G) ensure that flood insurance rate maps differentiate 
     between a property that is located in a flood zone and a 
     structure located on such property that is not at the same 
     risk level for flooding as such property due to the elevation 
     of the structure;
       (H) ensure that flood insurance rate maps take into 
     consideration the best scientific data and potential future 
     conditions (including projections for sea level rise); and
       (I) consider how to incorporate the new standards proposed 
     pursuant to this paragraph in existing mapping efforts.
       (2) Ongoing duties.--The Council shall, on an ongoing 
     basis, review the mapping protocols developed pursuant to 
     paragraph (1), and make recommendations to the Administrator 
     when the Council determines that mapping protocols should be 
     altered.
       (3) Meetings.--In carrying out its duties under this 
     section, the Council shall consult with stakeholders through 
     at least 4 public meetings annually, and shall seek input of 
     all stakeholder interests including State and local 
     representatives, environmental and conservation 
     organizations, insurance industry representatives, advocacy 
     groups, planning organizations, and mapping organizations.
       (d) Prohibition on Compensation.--Members of the Council 
     shall receive no additional compensation by reason of their 
     service on the Council.
       (e) Chairperson.--The Administrator shall serve as the 
     Chairperson of the Council.
       (f) Staff.--
       (1) FEMA.--Upon the request of the Council, the 
     Administrator may detail, on a nonreimbursable basis, 
     personnel of the Federal Emergency Management Agency to 
     assist the Council in carrying out its duties.
       (2) Other federal agencies.--Upon request of the Council, 
     any other Federal agency that is a member of the Council may 
     detail, on a non-reimbursable basis, personnel to assist the 
     Council in carrying out its duties.
       (g) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research, as the Council considers 
     appropriate.
       (h) Termination.--The Council shall terminate upon the 
     expiration of the 5-year period beginning on the date of the 
     enactment of this Act.
       (i) Moratorium on Flood Map Changes.--
       (1) Moratorium.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of this subtitle, the 
     National Flood Insurance Act of 1968, or the Flood Disaster 
     Protection Act of 1973, during the period beginning upon the 
     date of the enactment of this Act and ending upon the 
     submission by the Council to the Administrator and the 
     Congress of the proposed new mapping standards required under 
     subsection (c)(1), the Administrator may not make effective 
     any new or updated rate maps for flood insurance coverage 
     under the national flood insurance program that were not in 
     effect for such program as of such date of enactment, or 
     otherwise revise, update, or change the flood insurance rate 
     maps in effect for such program as of such date.
       (2) Letters of map change.--During the period described in 
     paragraph (1), the Administrator may revise, update, and 
     change the flood insurance rate maps in effect for the 
     national flood insurance program only pursuant to a letter of 
     map change (including a letter of map amendment, letter of 
     map revision, and letter of map revision based on fill).

     SEC. 307. FEMA INCORPORATION OF NEW MAPPING PROTOCOLS.

       (a) New Rate Mapping Standards.--Not later than the 
     expiration of the 6-month period beginning upon submission by 
     the Technical Mapping Advisory Council under section 346 of 
     the proposed new mapping standards for flood insurance rate 
     maps used under the national flood insurance program 
     developed by the Council pursuant to section 346(c), the 
     Administrator of the Federal Emergency Management Agency (in 
     this section referred to as the ``Administrator'') shall 
     establish new standards for such rate maps based on such 
     proposed new standards and the recommendations of the 
     Council.

[[Page 6640]]

       (b) Requirements.--The new standards for flood insurance 
     rate maps established by the Administrator pursuant to 
     subsection (a) shall--
       (1) delineate and include in any such rate maps--
       (A) all areas located within the 100-year flood plain; and
       (B) areas subject to graduated and other risk levels, to 
     the maximum extent possible;
       (2) ensure that any such rate maps--
       (A) include levees, including decertified levees, and the 
     level of protection they confer;
       (B) reflect current land use and topography and incorporate 
     the most current and accurate ground level data;
       (C) take into consideration the impacts and use of fill and 
     the flood risks associated with altered hydrology;
       (D) differentiate between a property that is located in a 
     flood zone and a structure located on such property that is 
     not at the same risk level for flooding as such property due 
     to the elevation of the structure;
       (E) identify and incorporate natural features and their 
     associated flood protection benefits into mapping and rates; 
     and
       (F) identify, analyze, and incorporate the impact of 
     significant changes to building and development throughout 
     any river or costal water system, including all tributaries, 
     which may impact flooding in areas downstream; and
       (3) provide that such rate maps are developed on a 
     watershed basis.
       (c) Report.--If, in establishing new standards for flood 
     insurance rate maps pursuant to subsection (a) of this 
     section, the Administrator does not implement all of the 
     recommendations of the Council made under the proposed new 
     mapping standards developed by the Council pursuant to 
     section 346(c), upon establishment of the new standards 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 specifying which such recommendations were not adopted 
     and explaining the reasons such recommendations were not 
     adopted.
       (d) Implementation.--The Administrator shall, not later 
     than the expiration of the 6-month period beginning upon 
     establishment of the new standards for flood insurance rate 
     maps pursuant to subsection (a) of this section, commence use 
     of the new standards and updating of flood insurance rate 
     maps in accordance with the new standards. Not later than the 
     expiration of the 10-year period beginning upon the 
     establishment of such new standards, the Administrator shall 
     complete updating of all flood insurance rate maps in 
     accordance with the new standards, subject to the 
     availability of sufficient amounts for such activities 
     provided in appropriation Acts.
       (e) Temporary Suspension of Mandatory Purchase Requirement 
     for Certain Properties.--
       (1) Submission of elevation certificate.--Subject to 
     paragraphs (2) and (3) of this subsection, subsections (a), 
     (b), and (e) of section 102 of the Flood Disaster Protection 
     Act of 1973 (42 U.S.C. 4012a), and section 202(a) of such 
     Act, shall not apply to a property located in an area 
     designated as having a special flood hazard if the owner of 
     such property submits to the Administrator an elevation 
     certificate for such property showing that the lowest level 
     of the primary residence on such property is at an elevation 
     that is at least three feet higher than the elevation of the 
     100-year flood plain.
       (2) Review of certificate.--The Administrator shall accept 
     as conclusive each elevation certificate submitted under 
     paragraph (1) unless the Administrator conducts a subsequent 
     elevation survey and determines that the lowest level of the 
     primary residence on the property in question is not at an 
     elevation that is at least three feet higher than the 
     elevation of the 100-year flood plain. The Administrator 
     shall provide any such subsequent elevation survey to the 
     owner of such property.
       (3) Determinations for properties on borders of special 
     flood hazard areas.--
       (A) Expedited determination.--In the case of any survey for 
     a property submitted to the Administrator pursuant to 
     paragraph (1) showing that a portion of the property is 
     located within an area having special flood hazards and that 
     a structure located on the property is not located within 
     such area having special flood hazards, the Administrator 
     shall expeditiously process any request made by an owner of 
     the property for a determination pursuant to paragraph (2) or 
     a determination of whether the structure is located within 
     the area having special flood hazards.
       (B) Prohibition of fee.--If the Administrator determines 
     pursuant to subparagraph (A) that the structure on the 
     property is not located within the area having special flood 
     hazards, the Administrator shall not charge a fee for 
     reviewing the flood hazard data and shall not require the 
     owner to provide any additional elevation data.
       (C) Simplification of review process.--The Administrator 
     shall collaborate with private sector flood insurers to 
     simplify the review process for properties described in 
     subparagraph (A) and to ensure that the review process 
     provides for accurate determinations.
       (4) Termination of authority.--This subsection shall cease 
     to apply to a property on the date on which the Administrator 
     updates the flood insurance rate map that applies to such 
     property in accordance with the requirements of subsection 
     (d).

     SEC. 308. TREATMENT OF LEVEES.

       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) Treatment of Levees.--The Administrator may not issue 
     flood insurance maps, or make effective updated flood 
     insurance maps, that omit or disregard the actual protection 
     afforded by an existing levee, floodwall, pump or other flood 
     protection feature, regardless of the accreditation status of 
     such feature.''.

     SEC. 309. PRIVATIZATION INITIATIVES.

       (a) FEMA and GAO Reports.--Not later than the expiration of 
     the 18-month period beginning on the date of the enactment of 
     this Act, the Administrator of the Federal Emergency 
     Management Agency and the Comptroller General of the United 
     States shall each conduct a separate study to assess a broad 
     range of options, methods, and strategies for privatizing the 
     national flood insurance program and shall each 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 with recommendations for the best 
     manner to accomplish such privatization.
       (b) Private Risk-Management Initiatives.--
       (1) Authority.--The Administrator of the Federal Emergency 
     Management Agency may carry out such private risk-management 
     initiatives under the national flood insurance program as the 
     Administrator considers appropriate to determine the capacity 
     of private insurers, reinsurers, and financial markets to 
     assist communities, on a voluntary basis only, in managing 
     the full range of financial risks associated with flooding.
       (2) Assessment.--Not later than the expiration of the 12-
     month period beginning on the date of the enactment of this 
     Act, the Administrator shall assess the capacity of the 
     private reinsurance, capital, and financial markets by 
     seeking proposals to assume a portion of the program's 
     insurance risk and submit to the Congress a report describing 
     the response to such request for proposals and the results of 
     such assessment.
       (3) Protocol for release of data.--The Administrator shall 
     develop a protocol to provide for the release of data 
     sufficient to conduct the assessment required under paragraph 
     (2).
       (c) Reinsurance.--The National Flood Insurance Act of 1968 
     is amended--
       (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
     inserting ``, including as reinsurance of insurance coverage 
     provided by the flood insurance program'' before ``, on such 
     terms'';
       (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
     inserting ``or reinsurance'' after ``flood insurance 
     coverage'';
       (3) in section 1335(a) (42 U.S.C. 4055(a))--
       (A) by inserting ``(1)'' after ``(a)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Administrator is authorized to secure reinsurance 
     coverage of coverage provided by the flood insurance program 
     from private market insurance, reinsurance, and capital 
     market sources at rates and on terms determined by the 
     Administrator to be reasonable and appropriate in an amount 
     sufficient to maintain the ability of the program to pay 
     claims and that minimizes the likelihood that the program 
     will utilize the borrowing authority provided under section 
     1309.'';
       (4) in section 1346(a) (12 U.S.C. 4082(a))--
       (A) in the matter preceding paragraph (1), by inserting ``, 
     or for purposes of securing reinsurance of insurance coverage 
     provided by the program,'' before ``of any or all of'';
       (B) in paragraph (1)--
       (i) by striking ``estimating'' and inserting 
     ``Estimating''; and
       (ii) by striking the semicolon at the end and inserting a 
     period;
       (C) in paragraph (2)--
       (i) by striking ``receiving'' and inserting ``Receiving''; 
     and
       (ii) by striking the semicolon at the end and inserting a 
     period;
       (D) in paragraph (3)--
       (i) by striking ``making'' and inserting ``Making''; and
       (ii) by striking ``; and'' and inserting a period;
       (E) in paragraph (4)--
       (i) by striking ``otherwise'' and inserting ``Otherwise''; 
     and
       (ii) by redesignating such paragraph as paragraph (5); and
       (F) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Placing reinsurance coverage on insurance provided by 
     such program.''; and
       (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
     inserting before the semicolon at the end the following: ``, 
     is subject to the reporting requirements of the Securities 
     Exchange Act of 1934, pursuant to section 13(a) or 15(d) of 
     such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the 
     Administrator to assume reinsurance on risks insured by the 
     flood insurance program''.

[[Page 6641]]

       (d) Assessment of Claims-Paying Ability.--
       (1) Assessment.--Not later than September 30 of each year, 
     the Administrator of the Federal Emergency Management Agency 
     shall conduct an assessment of the claims-paying ability of 
     the national flood insurance program, including the program's 
     utilization of private sector reinsurance and reinsurance 
     equivalents, with and without reliance on borrowing authority 
     under section 1309 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016). In conducting the assessment, the 
     Administrator shall take into consideration regional 
     concentrations of coverage written by the program, peak flood 
     zones, and relevant mitigation measures.
       (2) Report.--The Administrator shall submit a report to the 
     Congress of the results of each such assessment, and make 
     such report available to the public, not later than 30 days 
     after completion of the assessment.

     SEC. 310. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.

       Section 1320 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4027) is amended--
       (1) in the section heading, by striking ``report to the 
     president'' and inserting ``annual report to congress'';
       (2) in subsection (a)--
       (A) by striking ``biennially'';
       (B) by striking ``the President for submission to''; and
       (C) by inserting ``not later than June 30 of each year'' 
     before the period at the end;
       (3) in subsection (b), by striking ``biennial'' and 
     inserting ``annual''; and
       (4) by adding at the end the following new subsection:
       ``(c) Financial Status of Program.--The report under this 
     section for each year shall include information regarding the 
     financial status of the national flood insurance program 
     under this title, including a description of the financial 
     status of the National Flood Insurance Fund and current and 
     projected levels of claims, premium receipts, expenses, and 
     borrowing under the program.''.

     SEC. 311. MITIGATION ASSISTANCE.

       (a) Mitigation Assistance Grants.--Section 1366 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
     amended--
       (1) in subsection (a), by striking the last sentence and 
     inserting the following: ``Such financial assistance shall be 
     made available--
       ``(1) to States and communities in the form of grants under 
     this section for carrying out mitigation activities;
       ``(2) to States and communities in the form of grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to severe repetitive loss structures; and
       ``(3) to property owners in the form of direct grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to individual structures for which 2 or 
     more claim payments for losses have been made under flood 
     insurance coverage under this title if the Administrator, 
     after consultation with the State and community, determines 
     that neither the State nor community in which such a 
     structure is located has the capacity to manage such 
     grants.''.
       (2) by striking subsection (b);
       (3) in subsection (c)--
       (A) by striking ``flood risk'' and inserting ``multi-
     hazard'';
       (B) by striking ``provides protection against'' and 
     inserting ``examines reduction of''; and
       (C) by redesignating such subsection as subsection (b);
       (4) by striking subsection (d);
       (5) in subsection (e)--
       (A) in paragraph (1), by striking the paragraph designation 
     and all that follows through the end of the first sentence 
     and inserting the following:
       ``(1) Requirement of consistency with approved mitigation 
     plan.--Amounts provided under this section may be used only 
     for mitigation activities that are consistent with mitigation 
     plans that are approved by the Administrator and identified 
     under subparagraph (4).'';
       (B) by striking paragraphs (2), (3), and (4) and inserting 
     the following new paragraphs:
       ``(2) Requirements of technical feasibility, cost 
     effectiveness, and interest of nfif.--The Administrator may 
     approve only mitigation activities that the Administrator 
     determines are technically feasible and cost-effective and in 
     the interest of, and represent savings to, the National Flood 
     Insurance Fund. In making such determinations, the 
     Administrator shall take into consideration recognized 
     benefits that are difficult to quantify.
       ``(3) Priority for mitigation assistance.--In providing 
     grants under this section for mitigation activities, the 
     Administrator shall give priority for funding to activities 
     that the Administrator determines will result in the greatest 
     savings to the National Flood Insurance Fund, including 
     activities for--
       ``(A) severe repetitive loss structures;
       ``(B) repetitive loss structures; and
       ``(C) other subsets of structures as the Administrator may 
     establish.'';
       (C) in paragraph (5)--
       (i) by striking all of the matter that precedes 
     subparagraph (A) and inserting the following:
       ``(4) Eligible activities.--Eligible activities may 
     include--'';
       (ii) by striking subparagraphs (E) and (H);
       (iii) by redesignating subparagraphs (D), (F), and (G) as 
     subparagraphs (E), (G), and (H);
       (iv) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) elevation, relocation, and floodproofing of utilities 
     (including equipment that serve structures);'';
       (v) by inserting after subparagraph (E), as so redesignated 
     by clause (iii) of this subparagraph, the following new 
     subparagraph:
       ``(F) the development or update of State, local, or Indian 
     tribal mitigation plans which meet the planning criteria 
     established by the Administrator, except that the amount from 
     grants under this section that may be used under this 
     subparagraph may not exceed $50,000 for any mitigation plan 
     of a State or $25,000 for any mitigation plan of a local 
     government or Indian tribe;'';
       (vi) in subparagraph (H); as so redesignated by clause 
     (iii) of this subparagraph, by striking ``and'' at the end; 
     and
       (vii) by adding at the end the following new subparagraphs:
       ``(I) other mitigation activities not described in 
     subparagraphs (A) through (G) or the regulations issued under 
     subparagraph (H), that are described in the mitigation plan 
     of a State, community, or Indian tribe; and
       ``(J) personnel costs for State staff that provide 
     technical assistance to communities to identify eligible 
     activities, to develop grant applications, and to implement 
     grants awarded under this section, not to exceed $50,000 per 
     State in any Federal fiscal year, so long as the State 
     applied for and was awarded at least $1,000,000 in grants 
     available under this section in the prior Federal fiscal 
     year; the requirements of subsections (d)(1) and (d)(2) shall 
     not apply to the activity under this subparagraph.'';
       (D) by adding at the end the following new paragraph:
       ``(6) Eligibility of demolition and rebuilding of 
     properties.--The Administrator shall consider as an eligible 
     activity the demolition and rebuilding of properties to at 
     least base flood elevation or greater, if required by the 
     Administrator or if required by any State regulation or local 
     ordinance, and in accordance with criteria established by the 
     Administrator.''; and
       (E) by redesignating such subsection as subsection (c);
       (6) by striking subsections (f), (g), and (h) and inserting 
     the following new subsection:
       ``(d) Matching Requirement.--The Administrator may provide 
     grants for eligible mitigation activities as follows:
       ``(1) Severe repetitive loss structures.--In the case of 
     mitigation activities to severe repetitive loss structures, 
     in an amount up to 100 percent of all eligible costs.
       ``(2) Repetitive loss structures.--In the case of 
     mitigation activities to repetitive loss structures, in an 
     amount up to 90 percent of all eligible costs.
       ``(3) Other mitigation activities.-- In the case of all 
     other mitigation activities, in an amount up to 75 percent of 
     all eligible costs.'';
       (7) in subsection (i)--
       (A) in paragraph (2)--
       (i) by striking ``certified under subsection (g)'' and 
     inserting ``required under subsection (d)''; and
       (ii) by striking ``3 times the amount'' and inserting ``the 
     amount''; and
       (B) by redesignating such subsection as subsection (e);
       (8) in subsection (j)--
       (A) by striking ``Riegle Community Development and 
     Regulatory Improvement Act of 1994'' and inserting ``Flood 
     Insurance Reform Act of 2012'';
       (B) by redesignating such subsection as subsection (f); and
       (9) by striking subsections (k) and (m) and inserting the 
     following new subsections:
       ``(g) Failure to Make Grant Award Within 5 Years.--For any 
     application for a grant under this section for which the 
     Administrator fails to make a grant award within 5 years of 
     the date of application, the grant application shall be 
     considered to be denied and any funding amounts allocated for 
     such grant applications shall remain in the National Flood 
     Mitigation Fund under section 1367 of this title and shall be 
     made available for grants under this section.
       ``(h) Limitation on Funding for Mitigation Activities for 
     Severe Repetitive Loss Structures.--The amount used pursuant 
     to section 1310(a)(8) in any fiscal year may not exceed 
     $40,000,000 and shall remain available until expended.
       ``(i) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Community.--The term `community' means--
       ``(A) a political subdivision that--
       ``(i) has zoning and building code jurisdiction over a 
     particular area having special flood hazards, and
       ``(ii) is participating in the national flood insurance 
     program; or
       ``(B) a political subdivision of a State, or other 
     authority, that is designated by political subdivisions, all 
     of which meet the requirements of subparagraph (A), to 
     administer grants for mitigation activities for such 
     political subdivisions.

[[Page 6642]]

       ``(2) Repetitive loss structure.--The term `repetitive loss 
     structure' has the meaning given such term in section 1370.
       ``(3) Severe repetitive loss structure.--The term `severe 
     repetitive loss structure' means a structure that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which 4 or more separate claims payments have 
     been made under flood insurance coverage under this title, 
     with the amount of each such claim exceeding $15,000, and 
     with the cumulative amount of such claims payments exceeding 
     $60,000; or
       ``(ii) for which at least 2 separate claims payments have 
     been made under such coverage, with the cumulative amount of 
     such claims exceeding the value of the insured structure.''.
       (b) Elimination of Grants Program for Repetitive Insurance 
     Claims Properties.--Chapter I of the National Flood Insurance 
     Act of 1968 is amended by striking section 1323 (42 U.S.C. 
     4030).
       (c) Elimination of Pilot Program for Mitigation of Severe 
     Repetitive Loss Properties.--Chapter III of the National 
     Flood Insurance Act of 1968 is amended by striking section 
     1361A (42 U.S.C. 4102a).
       (d) National Flood Insurance Fund.--Section 1310(a) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 
     amended--
       (1) in paragraph (7), by inserting ``and'' after the 
     semicolon; and
       (2) by striking paragraphs (8) and (9).
       (e) National Flood Mitigation Fund.--Section 1367 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is 
     amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) in each fiscal year, from the National Flood 
     Insurance Fund in amounts not exceeding $90,000,000 to remain 
     available until expended, of which--
       ``(A) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section only for assistance 
     described in section 1366(a)(1);
       ``(B) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section only for assistance 
     described in section 1366(a)(2); and
       ``(C) not more than $10,000,000 shall be available pursuant 
     to subsection (a) of this section only for assistance 
     described in section 1366(a)(3).''.
       (B) in paragraph (3), by striking ``section 1366(i)'' and 
     inserting ``section 1366(e)'';
       (2) in subsection (c), by striking ``sections 1366 and 
     1323'' and inserting ``section 1366'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively; and
       (4) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Prohibition on Offsetting Collections.--
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this section shall not be subject 
     to offsetting collections through premium rates for flood 
     insurance coverage under this title.
       ``(e) Continued Availability and Reallocation.--Any amounts 
     made available pursuant to subparagraph (A), (B), or (C) of 
     subsection (b)(1) that are not used in any fiscal year shall 
     continue to be available for the purposes specified in such 
     subparagraph of subsection (b)(1) pursuant to which such 
     amounts were made available, unless the Administrator 
     determines that reallocation of such unused amounts to meet 
     demonstrated need for other mitigation activities under 
     section 1366 is in the best interest of the National Flood 
     Insurance Fund.''.
       (f) Increased Cost of Compliance Coverage.--Section 
     1304(b)(4) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011(b)(4)) is amended--
       (1) by striking subparagraph (B); and
       (2) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (B), (C), and (D), respectively.

     SEC. 312. NOTIFICATION TO HOMEOWNERS REGARDING MANDATORY 
                   PURCHASE REQUIREMENT APPLICABILITY AND RATE 
                   PHASE-INS.

       Section 201 of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4105) is amended by adding at the end the 
     following new subsection:
       ``(f) Annual Notification.--The Administrator, in 
     consultation with affected communities, shall establish and 
     carry out a plan to notify residents of areas having special 
     flood hazards, on an annual basis--
       ``(1) that they reside in such an area;
       ``(2) of the geographical boundaries of such area;
       ``(3) of whether section 1308(g) of the National Flood 
     Insurance Act of 1968 applies to properties within such area;
       ``(4) of the provisions of section 102 requiring purchase 
     of flood insurance coverage for properties located in such an 
     area, including the date on which such provisions apply with 
     respect to such area, taking into consideration section 
     102(i); and
       ``(5) of a general estimate of what similar homeowners in 
     similar areas typically pay for flood insurance coverage, 
     taking into consideration section 1308(g) of the National 
     Flood Insurance Act of 1968.''.

     SEC. 313. NOTIFICATION TO MEMBERS OF CONGRESS OF FLOOD MAP 
                   REVISIONS AND UPDATES.

       Section 1360 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4101), as amended by the preceding provisions of 
     this subtitle, is further amended by adding at the end the 
     following new subsection:
       ``(l) Notification to Members of Congress of Map 
     Modernization.--Upon any revision or update of any floodplain 
     area or flood-risk zone pursuant to subsection (f), any 
     decision pursuant to subsection (f)(1) that such revision or 
     update is necessary, any issuance of preliminary maps for 
     such revision or updating, or any other significant action 
     relating to any such revision or update, the Administrator 
     shall notify the Senators for each State affected, and each 
     Member of the House of Representatives for each congressional 
     district affected, by such revision or update in writing of 
     the action taken.''.

     SEC. 314. NOTIFICATION AND APPEAL OF MAP CHANGES; 
                   NOTIFICATION TO COMMUNITIES OF ESTABLISHMENT OF 
                   FLOOD ELEVATIONS.

       Section 1363 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104) is amended by striking the section 
     designation and all that follows through the end of 
     subsection (a) and inserting the following:
       ``Sec. 1363. (a) In establishing projected flood elevations 
     for land use purposes with respect to any community pursuant 
     to section 1361, the Administrator shall first propose such 
     determinations--
       ``(1) by providing the chief executive officer of each 
     community affected by the proposed elevations, by certified 
     mail, with a return receipt requested, notice of the 
     elevations, including a copy of the maps for the elevations 
     for such community and a statement explaining the process 
     under this section to appeal for changes in such elevations;
       ``(2) by causing notice of such elevations to be published 
     in the Federal Register, which notice shall include 
     information sufficient to identify the elevation 
     determinations and the communities affected, information 
     explaining how to obtain copies of the elevations, and a 
     statement explaining the process under this section to appeal 
     for changes in the elevations;
       ``(3) by publishing in a prominent local newspaper the 
     elevations, a description of the appeals process for flood 
     determinations, and the mailing address and telephone number 
     of a person the owner may contact for more information or to 
     initiate an appeal;
       ``(4) by providing written notification, by first class 
     mail, to each owner of real property affected by the proposed 
     elevations of--
       ``(A) the status of such property, both prior to and after 
     the effective date of the proposed determination, with 
     respect to flood zone and flood insurance requirements under 
     this Act and the Flood Disaster Protection Act of 1973;
       ``(B) the process under this section to appeal a flood 
     elevation determination; and
       ``(C) the mailing address and phone number of a person the 
     owner may contact for more information or to initiate an 
     appeal; and''.

     SEC. 315. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
                   INSURANCE.

       The National Flood Insurance Act of 1968 is amended by 
     inserting after section 1308 (42 U.S.C. 4015) the following 
     new section:

     ``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
                   CONTENTS INSURANCE.

       ``(a) In General.--The Administrator shall, upon entering 
     into a contract for flood insurance coverage under this title 
     for any property--
       ``(1) provide to the insured sufficient copies of the 
     notice developed pursuant to subsection (b); and
       ``(2) require the insured to provide a copy of the notice, 
     or otherwise provide notification of the information under 
     subsection (b) in the manner that the manager or landlord 
     deems most appropriate, to each such tenant and to each new 
     tenant upon commencement of such a tenancy.
       ``(b) Notice.--Notice to a tenant of a property in 
     accordance with this subsection is written notice that 
     clearly informs a tenant--
       ``(1) whether the property is located in an area having 
     special flood hazards;
       ``(2) that flood insurance coverage is available under the 
     national flood insurance program under this title for 
     contents of the unit or structure leased by the tenant;
       ``(3) of the maximum amount of such coverage for contents 
     available under this title at that time; and
       ``(4) of where to obtain information regarding how to 
     obtain such coverage, including a telephone number, mailing 
     address, and Internet site of the Administrator where such 
     information is available.''.

     SEC. 316. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT 
                   MANAGEMENT OF POLICY BY FEMA.

       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. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT 
                   MANAGEMENT OF POLICY BY FEMA.

       ``(a) Notification.--Not later than 60 days before the date 
     on which a transferred flood

[[Page 6643]]

     insurance policy expires, and annually thereafter until such 
     time as the Federal Emergency Management Agency is no longer 
     directly administering such policy, the Administrator shall 
     notify the holder of such policy that--
       ``(1) the Federal Emergency Management Agency is directly 
     administering the policy;
       ``(2) such holder may purchase flood insurance that is 
     directly administered by an insurance company; and
       ``(3) purchasing flood insurance offered under the National 
     Flood Insurance Program that is directly administered by an 
     insurance company will not alter the coverage provided or the 
     premiums charged to such holder that otherwise would be 
     provided or charged if the policy was directly administered 
     by the Federal Emergency Management Agency.
       ``(b) Definition.--In this section, the term `transferred 
     flood insurance policy' means a flood insurance policy that--
       ``(1) was directly administered by an insurance company at 
     the time the policy was originally purchased by the policy 
     holder; and
       ``(2) at the time of renewal of the policy, direct 
     administration of the policy was or will be transferred to 
     the Federal Emergency Management Agency.''.

     SEC. 317. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND 
                   ESCROW IN RESPA GOOD FAITH ESTIMATE.

       Subsection (c) of section 5 of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by 
     adding at the end the following new sentence: ``Each such 
     good faith estimate shall include the following conspicuous 
     statements and information: (1) that flood insurance coverage 
     for residential real estate is generally available under the 
     national flood insurance program whether or not the real 
     estate is located in an area having special flood hazards and 
     that, to obtain such coverage, a home owner or purchaser 
     should contact the national flood insurance program; (2) a 
     telephone number and a location on the Internet by which a 
     home owner or purchaser can contact the national flood 
     insurance program; and (3) that the escrowing of flood 
     insurance payments is required for many loans under section 
     102(d) of the Flood Disaster Protection Act of 1973, and may 
     be a convenient and available option with respect to other 
     loans.''.

     SEC. 318. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS AND 
                   COMMUNITIES OBTAINING LETTERS OF MAP AMENDMENT 
                   OR REVISION.

       (a) In General.--Section 1360 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101), as amended by the 
     preceding provisions of this subtitle, is further amended by 
     adding at the end the following new subsection:
       ``(m) Reimbursement.--
       ``(1) Requirement upon bona fide error.--If an owner of any 
     property located in an area described in section 102(i)(3) of 
     the Flood Disaster Protection Act of 1973, or a community in 
     which such a property is located, obtains a letter of map 
     amendment, or a letter of map revision, due to a bona fide 
     error on the part of the Administrator of the Federal 
     Emergency Management Agency, the Administrator shall 
     reimburse such owner, or such entity or jurisdiction acting 
     on such owner's behalf, or such community, as applicable, for 
     any reasonable costs incurred in obtaining such letter.
       ``(2) Reasonable costs.--The Administrator shall, by 
     regulation or notice, determine a reasonable amount of costs 
     to be reimbursed under paragraph (1), except that such costs 
     shall not include legal or attorneys fees. In determining the 
     reasonableness of costs, the Administrator shall only 
     consider the actual costs to the owner or community, as 
     applicable, of utilizing the services of an engineer, 
     surveyor, or similar services.''.
       (b) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Administrator of the Federal 
     Emergency Management Agency shall issue the regulations or 
     notice required under section 1360(m)(2) of the National 
     Flood Insurance Act of 1968, as added by the amendment made 
     by subsection (a) of this section.

     SEC. 319. ENHANCED COMMUNICATION WITH CERTAIN COMMUNITIES 
                   DURING MAP UPDATING PROCESS.

       Section 1360 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4101), as amended by the preceding provisions of 
     this subtitle, is further amended by adding at the end the 
     following new subsection:
       ``(n) Enhanced Communication With Certain Communities 
     During Map Updating Process.--In updating flood insurance 
     maps under this section, the Administrator shall communicate 
     with communities located in areas where flood insurance rate 
     maps have not been updated in 20 years or more and the 
     appropriate State emergency agencies to resolve outstanding 
     issues, provide technical assistance, and disseminate all 
     necessary information to reduce the prevalence of outdated 
     maps in flood-prone areas.''.

     SEC. 320. NOTIFICATION TO RESIDENTS NEWLY INCLUDED IN FLOOD 
                   HAZARD AREAS.

       Section 1360 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4101), as amended by the preceding provisions of 
     this subtitle, is further amended by adding at the end the 
     following new subsection:
       ``(o) Notification to Residents Newly Included in Flood 
     Hazard Area.--In revising or updating any areas having 
     special flood hazards, the Administrator shall provide to 
     each owner of a property to be newly included in such a 
     special flood hazard area, at the time of issuance of such 
     proposed revised or updated flood insurance maps, a copy of 
     the proposed revised or updated flood insurance maps together 
     with information regarding the appeals process under section 
     1363 (42 U.S.C. 4104).''.

     SEC. 321. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF 
                   HURRICANE SEASON.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF 
                   HURRICANE SEASON.

       ``In the case of any property that is otherwise in 
     compliance with the coverage and building requirements of the 
     national flood insurance program, the presence of an enclosed 
     swimming pool located at ground level or in the space below 
     the lowest floor of a building after November 30 and before 
     June 1 of any year shall have no effect on the terms of 
     coverage or the ability to receive coverage for such building 
     under the national flood insurance program established 
     pursuant to this title, if the pool is enclosed with non-
     supporting breakaway walls.''.

     SEC. 322. INFORMATION REGARDING MULTIPLE PERILS CLAIMS.

       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:
       ``(d) Information Regarding Multiple Perils Claims.--
       ``(1) In general.--Subject to paragraph (2), if an insured 
     having flood insurance coverage under a policy issued under 
     the program under this title by the Administrator or a 
     company, insurer, or entity offering flood insurance coverage 
     under such program (in this subsection referred to as a 
     `participating company') has wind or other homeowners 
     coverage from any company, insurer, or other entity covering 
     property covered by such flood insurance, in the case of 
     damage to such property that may have been caused by flood or 
     by wind, the Administrator and the participating company, 
     upon the request of the insured, shall provide to the 
     insured, within 30 days of such request--
       ``(A) a copy of the estimate of structure damage;
       ``(B) proofs of loss;
       ``(C) any expert or engineering reports or documents 
     commissioned by or relied upon by the Administrator or 
     participating company in determining whether the damage was 
     caused by flood or any other peril; and
       ``(D) the Administrator's or the participating company's 
     final determination on the claim.
       ``(2) Timing.--Paragraph (1) shall apply only with respect 
     to a request described in such paragraph made by an insured 
     after the Administrator or the participating company, or 
     both, as applicable, have issued a final decision on the 
     flood claim involved and resolution of all appeals with 
     respect to such claim.''.

     SEC. 323. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES.

       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:
       ``(e) FEMA Authority to Reject Transfer of Policies.--
     Notwithstanding any other provision of this Act, the 
     Administrator may, at the discretion of the Administrator, 
     refuse to accept the transfer of the administration of 
     policies for coverage under the flood insurance program under 
     this title that are written and administered by any insurance 
     company or other insurer, or any insurance agent or 
     broker.''.

     SEC. 324. APPEALS.

       (a) Television and Radio Announcement.--Section 1363 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104), as 
     amended by the preceding provisions of this subtitle, is 
     further amended--
       (1) in subsection (a), by adding at the end the following 
     new paragraph:
       ``(5) by notifying a local television and radio station,''; 
     and
       (2) in the first sentence of subsection (b), by inserting 
     before the period at the end the following: ``and shall 
     notify a local television and radio station at least once 
     during the same 10-day period''.
       (b) Extension of Appeals Period.--Subsection (b) of section 
     1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104(b)) is amended--
       (1) by striking ``(b) The Director'' and inserting ``(b)(1) 
     The Administrator''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Administrator shall grant an extension of the 90-
     day period for appeals referred to in paragraph (1) for 90 
     additional days if an affected community certifies to the 
     Administrator, after the expiration of at least 60 days of 
     such period, that the community--

[[Page 6644]]

       ``(A) believes there are property owners or lessees in the 
     community who are unaware of such period for appeals; and
       ``(B) will utilize the extension under this paragraph to 
     notify property owners or lessees who are affected by the 
     proposed flood elevation determinations of the period for 
     appeals and the opportunity to appeal the determinations 
     proposed by the Administrator.''.
       (c) Applicability.--The amendments made by subsections (a) 
     and (b) shall apply with respect to any flood elevation 
     determination for any area in a community that has not, as of 
     the date of the enactment of this Act, been issued a Letter 
     of Final Determination for such determination under the flood 
     insurance map modernization process.

     SEC. 325. RESERVE FUND.

       (a) Establishment.--Chapter I of the National Flood 
     Insurance Act of 1968 is amended by inserting after section 
     1310 (42 U.S.C. 4017) the following new section:

     ``SEC. 1310A. RESERVE FUND.

       ``(a) Establishment of Reserve Fund.--In carrying out the 
     flood insurance program authorized by this title, the 
     Administrator shall establish in the Treasury of the United 
     States a National Flood Insurance Reserve Fund (in this 
     section referred to as the `Reserve Fund') which shall--
       ``(1) be an account separate from any other accounts or 
     funds available to the Administrator; and
       ``(2) be available for meeting the expected future 
     obligations of the flood insurance program.
       ``(b) Reserve Ratio.--Subject to the phase-in requirements 
     under subsection (d), the Reserve Fund shall maintain a 
     balance equal to--
       ``(1) 1 percent of the sum of the total potential loss 
     exposure of all outstanding flood insurance policies in force 
     in the prior fiscal year; or
       ``(2) such higher percentage as the Administrator 
     determines to be appropriate, taking into consideration any 
     circumstance that may raise a significant risk of substantial 
     future losses to the Reserve Fund.
       ``(c) Maintenance of Reserve Ratio.--
       ``(1) In general.--The Administrator shall have the 
     authority to establish, increase, or decrease the amount of 
     aggregate annual insurance premiums to be collected for any 
     fiscal year necessary--
       ``(A) to maintain the reserve ratio required under 
     subsection (b); and
       ``(B) to achieve such reserve ratio, if the actual balance 
     of such reserve is below the amount required under subsection 
     (b).
       ``(2) Considerations.--In exercising the authority under 
     paragraph (1), the Administrator shall consider--
       ``(A) the expected operating expenses of the Reserve Fund;
       ``(B) the insurance loss expenditures under the flood 
     insurance program;
       ``(C) any investment income generated under the flood 
     insurance program; and
       ``(D) any other factor that the Administrator determines 
     appropriate.
       ``(3) Limitations.--In exercising the authority under 
     paragraph (1), the Administrator shall be subject to all 
     other provisions of this Act, including any provisions 
     relating to chargeable premium rates and annual increases of 
     such rates.
       ``(d) Phase-in Requirements.--The phase-in requirements 
     under this subsection are as follows:
       ``(1) In general.--Beginning in fiscal year 2012 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved, in each such fiscal year 
     the Administrator shall place in the Reserve Fund an amount 
     equal to not less than 7.5 percent of the reserve ratio 
     required under subsection (b).
       ``(2) Amount satisfied.--As soon as the ratio required 
     under subsection (b) is achieved, and except as provided in 
     paragraph (3), the Administrator shall not be required to set 
     aside any amounts for the Reserve Fund.
       ``(3) Exception.--If at any time after the ratio required 
     under subsection (b) is achieved, the Reserve Fund falls 
     below the required ratio under subsection (b), the 
     Administrator shall place in the Reserve Fund for that fiscal 
     year an amount equal to not less than 7.5 percent of the 
     reserve ratio required under subsection (b).
       ``(e) Limitation on Reserve Ratio.--In any given fiscal 
     year, if the Administrator determines that the reserve ratio 
     required under subsection (b) cannot be achieved, the 
     Administrator shall submit a report to the Congress that--
       ``(1) describes and details the specific concerns of the 
     Administrator regarding such consequences;
       ``(2) demonstrates how such consequences would harm the 
     long-term financial soundness of the flood insurance program; 
     and
       ``(3) indicates the maximum attainable reserve ratio for 
     that particular fiscal year.
       ``(f) Availability of Amounts.--The reserve ratio 
     requirements under subsection (b) and the phase-in 
     requirements under subsection (d) shall be subject to the 
     availability of amounts in the National Flood Insurance Fund 
     for transfer under section 1310(a)(10), as provided in 
     section 1310(f).''.
       (b) Funding.--Subsection (a) of section 1310 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)), as 
     amended by the preceding provisions of this Act, is further 
     amended by adding at the end the following new paragraph:
       ``(10) for transfers to the National Flood Insurance 
     Reserve Fund under section 1310A, in accordance with such 
     section.''.

     SEC. 326. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH 
                   ACTIVITIES AND COMMUNITY BUILDING CODE 
                   ADMINISTRATION GRANTS.

       Section 105(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5305(a)) is amended--
       (1) in paragraph (24), by striking ``and'' at the end;
       (2) in paragraph (25), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(26) supplementing existing State or local funding for 
     administration of building code enforcement by local building 
     code enforcement departments, including for increasing 
     staffing, providing staff training, increasing staff 
     competence and professional qualifications, and supporting 
     individual certification or departmental accreditation, and 
     for capital expenditures specifically dedicated to the 
     administration of the building code enforcement department, 
     except that, to be eligible to use amounts as provided in 
     this paragraph--
       ``(A) a building code enforcement department shall provide 
     matching, non-Federal funds to be used in conjunction with 
     amounts used under this paragraph in an amount--
       ``(i) in the case of a building code enforcement department 
     serving an area with a population of more than 50,000, equal 
     to not less than 50 percent of the total amount of any funds 
     made available under this title that are used under this 
     paragraph;
       ``(ii) in the case of a building code enforcement 
     department serving an area with a population of between 
     20,001 and 50,000, equal to not less than 25 percent of the 
     total amount of any funds made available under this title 
     that are used under this paragraph; and
       ``(iii) in the case of a building code enforcement 
     department serving an area with a population of less than 
     20,000, equal to not less than 12.5 percent of the total 
     amount of any funds made available under this title that are 
     used under this paragraph,

     except that the Secretary may waive the matching fund 
     requirements under this subparagraph, in whole or in part, 
     based upon the level of economic distress of the jurisdiction 
     in which is located the local building code enforcement 
     department that is using amounts for purposes under this 
     paragraph, and shall waive such matching fund requirements in 
     whole for any recipient jurisdiction that has dedicated all 
     building code permitting fees to the conduct of local 
     building code enforcement; and
       ``(B) any building code enforcement department using funds 
     made available under this title for purposes under this 
     paragraph shall empanel a code administration and enforcement 
     team consisting of at least 1 full-time building code 
     enforcement officer, a city planner, and a health planner or 
     similar officer; and
       ``(27) provision of assistance to local governmental 
     agencies responsible for floodplain management activities 
     (including such agencies of Indians tribes, as such term is 
     defined in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4103)) in communities that participate in the national flood 
     insurance program under the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.), only for carrying out outreach 
     activities to encourage and facilitate the purchase of flood 
     insurance protection under such Act by owners and renters of 
     properties in such communities and to promote educational 
     activities that increase awareness of flood risk reduction; 
     except that--
       ``(A) amounts used as provided under this paragraph shall 
     be used only for activities designed to--
       ``(i) identify owners and renters of properties in 
     communities that participate in the national flood insurance 
     program, including owners of residential and commercial 
     properties;
       ``(ii) notify such owners and renters when their properties 
     become included in, or when they are excluded from, an area 
     having special flood hazards and the effect of such inclusion 
     or exclusion on the applicability of the mandatory flood 
     insurance purchase requirement under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
     properties;
       ``(iii) educate such owners and renters regarding the flood 
     risk and reduction of this risk in their community, including 
     the continued flood risks to areas that are no longer subject 
     to the flood insurance mandatory purchase requirement;
       ``(iv) educate such owners and renters regarding the 
     benefits and costs of maintaining or acquiring flood 
     insurance, including, where applicable, lower-cost preferred 
     risk policies under this title for such properties and the 
     contents of such properties;
       ``(v) encourage such owners and renters to maintain or 
     acquire such coverage;
       ``(vi) notify such owners of where to obtain information 
     regarding how to obtain such

[[Page 6645]]

     coverage, including a telephone number, mailing address, and 
     Internet site of the Administrator of the Federal Emergency 
     Management Agency (in this paragraph referred to as the 
     `Administrator') where such information is available; and
       ``(vii) educate local real estate agents in communities 
     participating in the national flood insurance program 
     regarding the program and the availability of coverage under 
     the program for owners and renters of properties in such 
     communities, and establish coordination and liaisons with 
     such real estate agents to facilitate purchase of coverage 
     under the National Flood Insurance Act of 1968 and increase 
     awareness of flood risk reduction;
       ``(B) in any fiscal year, a local governmental agency may 
     not use an amount under this paragraph that exceeds 3 times 
     the amount that the agency certifies, as the Secretary, in 
     consultation with the Administrator, shall require, that the 
     agency will contribute from non-Federal funds to be used with 
     such amounts used under this paragraph only for carrying out 
     activities described in subparagraph (A); and for purposes of 
     this subparagraph, the term `non-Federal funds' includes 
     State or local government agency amounts, in-kind 
     contributions, any salary paid to staff to carry out the 
     eligible activities of the local governmental agency 
     involved, the value of the time and services contributed by 
     volunteers to carry out such services (at a rate determined 
     by the Secretary), and the value of any donated material or 
     building and the value of any lease on a building;
       ``(C) a local governmental agency that uses amounts as 
     provided under this paragraph may coordinate or contract with 
     other agencies and entities having particular capacities, 
     specialties, or experience with respect to certain 
     populations or constituencies, including elderly or disabled 
     families or persons, to carry out activities described in 
     subparagraph (A) with respect to such populations or 
     constituencies; and
       ``(D) each local government agency that uses amounts as 
     provided under this paragraph shall submit a report to the 
     Secretary and the Administrator, not later than 12 months 
     after such amounts are first received, which shall include 
     such information as the Secretary and the Administrator 
     jointly consider appropriate to describe the activities 
     conducted using such amounts and the effect of such 
     activities on the retention or acquisition of flood insurance 
     coverage.''.

     SEC. 327. TECHNICAL CORRECTIONS.

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

     SEC. 328. REQUIRING COMPETITION FOR NATIONAL FLOOD INSURANCE 
                   PROGRAM POLICIES.

       (a) Report.--Not later than the expiration of the 90-day 
     period beginning upon the date of the enactment of this Act, 
     the Administrator of the Federal Emergency Management Agency, 
     in consultation with insurance companies, insurance agents 
     and other organizations with which the Administrator has 
     contracted, shall submit to the Congress a report describing 
     procedures and policies that the Administrator shall 
     implement to limit the percentage of policies for flood 
     insurance coverage under the national flood insurance program 
     that are directly managed by the Agency to not more than 10 
     percent of the aggregate number of flood insurance policies 
     in force under such program.
       (b) Implementation.--Upon submission of the report under 
     subsection (a) to the Congress, the Administrator shall 
     implement the policies and procedures described in the 
     report. The Administrator shall, not later than the 
     expiration of the 12-month period beginning upon submission 
     of such report, reduce the number of policies for flood 
     insurance coverage that are directly managed by the Agency, 
     or by the Agency's direct servicing contractor that is not an 
     insurer, to not more than 10 percent of the aggregate number 
     of flood insurance policies in force as of the expiration of 
     such 12-month period.
       (c) Continuation of Current Agent Relationships.--In 
     carrying out subsection (b), the Administrator shall ensure 
     that--
       (1) agents selling or servicing policies described in such 
     subsection are not prevented from continuing to sell or 
     service such policies; and
       (2) insurance companies are not prevented from waiving any 
     limitation such companies could otherwise enforce to limit 
     any such activity.

     SEC. 329. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD 
                   INSURANCE OPTIONS.

       (a) Studies.--The Administrator of the Federal Emergency 
     Management Agency and the Comptroller General of the United 
     States shall each conduct a separate study to assess options, 
     methods, and strategies for offering voluntary community-
     based flood insurance policy options and incorporating such 
     options into the national flood insurance program. Such 
     studies shall take into consideration and analyze how the 
     policy options would affect communities having varying 
     economic bases, geographic locations, flood hazard 
     characteristics or classifications, and flood management 
     approaches.
       (b) Reports.--Not later than the expiration of the 18-month 
     period beginning on the date of the enactment of this Act, 
     the Administrator of the Federal Emergency Management Agency 
     and the Comptroller General of the United States shall each 
     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 on the results and 
     conclusions of the study such agency conducted under 
     subsection (a), and each such report shall include 
     recommendations for the best manner to incorporate voluntary 
     community-based flood insurance options into the national 
     flood insurance program and for a strategy to implement such 
     options that would encourage communities to undertake flood 
     mitigation activities.

     SEC. 330. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
                   MANAGEMENT CRITERIA.

       Not later than the expiration of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Administrator of the Federal Emergency Management Agency 
     shall conduct a study and 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 impact, effectiveness, and feasibility 
     of amending section 1361 of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4102) to include widely used and 
     nationally recognized building codes as part of the 
     floodplain management criteria developed under such section, 
     and shall determine--
       (1) the regulatory, financial, and economic impacts of such 
     a building code requirement on homeowners, States and local 
     communities, local land use policies, and the Federal 
     Emergency Management Agency;
       (2) the resources required of State and local communities 
     to administer and enforce such a building code requirement;
       (3) the effectiveness of such a building code requirement 
     in reducing flood-related damage to buildings and contents;
       (4) the impact of such a building code requirement on the 
     actuarial soundness of the National Flood Insurance Program;
       (5) the effectiveness of nationally recognized codes in 
     allowing innovative materials and systems for flood-resistant 
     construction;
       (6) the feasibility and effectiveness of providing an 
     incentive in lower premium rates for flood insurance coverage 
     under such Act for structures meeting whichever of such 
     widely used and nationally recognized building code or any 
     applicable local building code provides greater protection 
     from flood damage;
       (7) the impact of such a building code requirement on rural 
     communities with different building code challenges than more 
     urban environments; and
       (8) the impact of such a building code requirement on 
     Indian reservations.

     SEC. 331. STUDY ON GRADUATED RISK.

       (a) Study.--The National Academy of Sciences shall conduct 
     a study exploring methods for understanding graduated risk 
     behind levees and the associated land development, insurance, 
     and risk communication dimensions, which shall--
       (1) research, review, and recommend current best practices 
     for estimating direct annualized flood losses behind levees 
     for residential and commercial structures;
       (2) rank such practices based on their best value, 
     balancing cost, scientific integrity, and the inherent 
     uncertainties associated with all aspects of the loss 
     estimate, including geotechnical engineering, flood frequency 
     estimates, economic value, and direct damages;
       (3) research, review, and identify current best floodplain 
     management and land use practices behind levees that 
     effectively balance social, economic, and environmental 
     considerations as part of an overall flood risk management 
     strategy;
       (4) identify examples where such practices have proven 
     effective and recommend methods and processes by which they 
     could be applied more broadly across the United States, given 
     the variety of different flood risks, State and local legal 
     frameworks, and evolving judicial opinions;
       (5) research, review, and identify a variety of flood 
     insurance pricing options for flood hazards behind levees 
     which are actuarially sound and based on the flood risk data 
     developed using the top three best value approaches 
     identified pursuant to paragraph (1);
       (6) evaluate and recommend methods to reduce insurance 
     costs through creative arrangements between insureds and 
     insurers

[[Page 6646]]

     while keeping a clear accounting of how much financial risk 
     is being borne by various parties such that the entire risk 
     is accounted for, including establishment of explicit limits 
     on disaster aid or other assistance in the event of a flood; 
     and
       (7) taking into consideration the recommendations pursuant 
     to paragraphs (1) through (3), recommend approaches to 
     communicating the associated risks to community officials, 
     homeowners, and other residents.
       (b) Report.--Not later than the expiration of the 12-month 
     period beginning on the date of the enactment of this Act, 
     the National Academy of Sciences shall submit a report to the 
     Committees on Financial Services and Science, Space, and 
     Technology of the House of Representatives and the Committees 
     on Banking, Housing, and Urban Affairs and Commerce, Science 
     and Transportation of the Senate on the study under 
     subsection (a) including the information and recommendations 
     required under such subsection.

     SEC. 332. REPORT ON FLOOD-IN-PROGRESS DETERMINATION.

       The Administrator of the Federal Emergency Management 
     Agency shall review the processes and procedures for 
     determining that a flood event has commenced or is in 
     progress for purposes of flood insurance coverage made 
     available under the national flood insurance program under 
     the National Flood Insurance Act of 1968 and for providing 
     public notification that such an event has commenced or is in 
     progress. In such review, the Administrator shall take into 
     consideration the effects and implications that weather 
     conditions, such as rainfall, snowfall, projected snowmelt, 
     existing water levels, and other conditions have on the 
     determination that a flood event has commenced or is in 
     progress. Not later than the expiration of the 6-month period 
     beginning upon the date of the enactment of this Act, the 
     Administrator shall submit a report to the Congress setting 
     forth the results and conclusions of the review undertaken 
     pursuant to this section and any actions undertaken or 
     proposed actions to be taken to provide for a more precise 
     and technical determination that a flooding event has 
     commenced or is in progress.

     SEC. 333. STUDY ON REPAYING FLOOD INSURANCE DEBT.

       Not later than the expiration of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Administrator of the Federal Emergency Management Agency 
     shall submit a report to the Congress setting forth a plan 
     for repaying within 10 years all amounts, including any 
     amounts previously borrowed but not yet repaid, owed pursuant 
     to clause (2) of subsection (a) of section 1309 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)).

     SEC. 334. NO CAUSE OF ACTION.

       No cause of action shall exist and no claim may be brought 
     against the United States for violation of any notification 
     requirement imposed upon the United States by this subtitle 
     or any amendment made by this subtitle.

     SEC. 335. AUTHORITY FOR THE CORPS OF ENGINEERS TO PROVIDE 
                   SPECIALIZED OR TECHNICAL SERVICES.

       (a) In General.--Notwithstanding any other provision of 
     law, upon the request of a State or local government, the 
     Secretary of the Army may evaluate a levee system that was 
     designed or constructed by the Secretary for the purposes of 
     the National Flood Insurance Program established under 
     chapter 1 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.).
       (b) Requirements.--A levee system evaluation under 
     subsection (a) shall--
       (1) comply with applicable regulations related to areas 
     protected by a levee system;
       (2) be carried out in accordance with such procedures as 
     the Secretary, in consultation with the Administrator of the 
     Federal Emergency Management Agency, may establish; and
       (3) be carried out only if the State or local government 
     agrees to reimburse the Secretary for all cost associated 
     with the performance of the activities.

                    TITLE IV--OIL AND GAS SUBSIDIES

     SEC. 401. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (as defined in section 167(h)(5)(B)) for the taxable year, 
     the term `domestic production gross receipts' shall not 
     include gross receipts from the production, transportation, 
     or distribution of oil, natural gas, or any primary product 
     (within the meaning of subsection (d)(9)) thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after December 31, 2012.

     SEC. 402. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING 
                   FOR MAJOR INTEGRATED OIL COMPANIES.

       (a) In General.--Section 472 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(h) Major Integrated Oil Companies.--Notwithstanding any 
     other provision of this section, a major integrated oil 
     company (as defined in section 167(h)(5)(B)) may not use the 
     method provided in subsection (b) in inventorying of any 
     goods.''.
       (b) Effective Date and Special Rule.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to taxable years ending after December 31, 2012.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendment made by this section to 
     change its method of accounting for its first taxable year 
     ending after December 31, 2012--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     ratably over a period (not greater than 8 taxable years) 
     beginning with such first taxable year.

     SEC. 403. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (as defined 
     in section 167(h)(5)(B)) to a foreign country or possession 
     of the United States for any period shall not be considered a 
     tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

                       TITLE V--THE BUFFETT RULE

     SEC. 501. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

          ``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59B. Fair share tax.

     ``SEC. 59B. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Phase-in of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

[[Page 6647]]

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2013, the $1,000,000 amount under paragraph (1) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2012' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such taxes 
     are attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during the taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (b) Conforming Amendment.--Section 26(b)(2) of such Code is 
     amended by redesignating subparagraphs (C) through (X) as 
     subparagraphs (D) through (Y), respectively, and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) section 59B (relating to fair share tax),''.
       (c) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 of such Code is amended by adding at the end 
     the following new item:

         ``Part VII--Fair Share Tax on High-Income Taxpayers''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2012.

       TITLE VI--RETIREMENT CONTRIBUTIONS FOR MEMBERS OF CONGRESS

     SEC. 601. RETIREMENT CONTRIBUTIONS.

       (a) Civil Service Retirement System.--
       (1) Individual contributions.--Section 8334(c) of title 5, 
     United States Code, is amended--
       (A) by striking ``(c) Each'' and inserting ``(c)(1) Each''; 
     and
       (B) by adding at the end the following:
       ``(2) Notwithstanding any other provision of this 
     subsection, the applicable percentage of basic pay under this 
     subsection shall, for purposes of computing an amount with 
     respect to a Member for Member service--
       ``(A) for a period in calendar year 2013, be equal to the 
     applicable percentage under this subsection for calendar year 
     2012, plus an additional 2.5 percentage points;
       ``(B) for a period in calendar year 2014, 2015, 2016, or 
     2017, be equal to the applicable percentage under this 
     subsection for the preceding calendar year (as determined 
     under subparagraph (A) or this subparagraph, as the case may 
     be), plus an additional 1.5 percentage points; and
       ``(C) for a period in any calendar year after 2017, be 
     equal to the applicable percent age under this subsection for 
     calendar year 2017 (as determined under subparagraph (B)).''.
       (2) Government contributions.--Section 8334(a)(1)(B) of 
     title 5, United States Code, is amended--
       (A) in clause (i), by striking ``Except as provided in 
     clause (ii),'' and inserting ``Except as provided in clause 
     (ii) or (iii),''; and
       (B) by adding at the end the following:
       ``(iii) In the case of a Member, the amount to be 
     contributed under clause (i) shall, with respect to a period 
     in any year beginning after December 31, 2012, be equal to--
       ``(I) the amount which would otherwise apply under clause 
     (i) with respect to such period, reduced by
       ``(II) the amount by which, with respect to such period, 
     the withholding under subparagraph (A) exceeds the amount 
     which would otherwise have been withheld from the basic pay 
     of the Member involved under subparagraph (A) based on the 
     percentage applicable under subsection (c) for calendar year 
     2012.''.
       (b) Federal Employees' Retirement System.--
       (1) Individual contributions.--Section 8422(a)(3) of title 
     5, United States Code, is amended--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) by inserting after subparagraph (A) the following:
       ``(B) Notwithstanding any other provision of this 
     paragraph, the applicable percentage under this subsection 
     shall, for purposes of computing an amount with respect to a 
     Member (other than an individual who is a revised annuity 
     employee by virtue of becoming a Member after December 31, 
     2012)--
       ``(i) for a period in calendar year 2013, be equal to the 
     applicable percentage under this paragraph for calendar year 
     2012, plus an additional 2.5 percentage points;
       ``(ii) for a period in calendar year 2014, 2015, 2016, or 
     2017, be equal to the applicable percentage under this 
     paragraph for the preceding calendar year (as determined 
     under clause (i) or this clause, as the case maybe), plus an 
     additional 1.5 percentage points; and
       ``(iii) for a period in any calendar year after 2017, be 
     equal to the applicable percentage under this paragraph for 
     calendar year 2017 (as determined under clause (ii)).''; and
       (C) in subparagraph (C) (as so redesignated by subparagraph 
     (A)), in the line relating to a Member, by striking ``9.3'' 
     and inserting ``12''.
       (2) Government contributions.--Section 8423(a)(2) of title 
     5, United States Code, is amended--
       (A) by striking ``(2)'' and inserting ``(2)(A)''; and
       (B) by adding at the end the following:
       ``(B)(i) Subject to clauses (ii) and (iii), for purposes of 
     any period in any year beginning after December 31, 2012, the 
     normal-cost percentage under this subsection for Members 
     shall be determined and applied as if section 601(b)(1)(B) of 
     the Balanced Approach to Replace the Sequester Act of 2012 
     for Fiscal Year 2013 had not been enacted.
       ``(ii) Any contributions under this subsection with respect 
     to Members in excess of the amounts which (but for clause 
     (i)) would otherwise have been payable shall be applied 
     toward reducing the unfunded liability of the Civil Service 
     Retirement System.
       ``(iii) After the unfunded liability of the Civil Service 
     Retirement System has been eliminated, as determined by the 
     Office, Government contributions under this subsection shall 
     be determined and made disregarding this subparagraph.''.