[Congressional Record (Bound Edition), Volume 158 (2012), Part 7]
[Senate]
[Pages 9747-9748]
[From the U.S. Government Publishing Office, www.gpo.gov]




              FLOOD INSURANCE REFORM AND MODERNIZATION ACT

  Mr. REID. Mr. President, I ask unanimous consent that the remaining 
time postcloture be yielded back and the Senate adopt the motion to 
proceed to S. 1940.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The motion was agreed to.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       The bill (S. 1940) to amend the National Flood Insurance 
     Act of 1968, to restore the financial solvency of the flood 
     insurance fund, and for other purposes.

  Mr. REID. Mr. President, I was coming here today to propound a 
unanimous consent request on this most important piece of legislation 
dealing with flood insurance, but after having had some discussions 
with various people, at this time it would not be of any benefit. There 
is no need for me to stand and ask unanimous consent when I know it is 
not going to go anyplace.
  So we are going to move this forward a little bit, and hopefully with 
this we can move toward completing this bill at a very early time.


                           Amendment No. 2468

               (Purpose: In the nature of a substitute.)

  Mr. REID. Mr. President, on behalf of Senator Johnson of South Dakota 
and Senator Shelby, I have a substitute amendment at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid], for Mr. Johnson of 
     South Dakota, for himself and Mr. Shelby, proposes an 
     amendment numbered 2468.

  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  Mr. REID. Mr. President, I ask for the yeas and nays on that 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2469 to Amendment No. 2468

  Mr. REID. Mr. President, on behalf of Senator Pryor, there is a 
first-degree amendment at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid], for Mr. Pryor, for 
     himself and Mr. Hoeven, proposes an amendment numbered 2469 
     to amendment No. 2468.

  The amendment is as follows:

(Purpose: To require the Government Accountability Office to study the 
  effect of applying the mandatory purchase requirements to areas of 
  residual risk, and to require the Administrator to study voluntary 
                community-based flood insurance options)

       Strike section 107 and insert the following:

     SEC. 107. AREAS OF RESIDUAL RISK.

       (a) Areas of Residual Risk.--
       (1) Definition.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Technical Mapping Advisory Council established under 
     section 117, shall establish a definition of the term ``area 
     of residual risk'', for purposes of the National Flood 
     Insurance Program, that is limited to areas that are not 
     areas having special flood hazards.
       (2) This section.--In this section, the term ``area of 
     residual risk'' has the meaning established by the 
     Administrator under paragraph (1).
       (b) Study and Report on Mandatory Purchase Requirements in 
     Areas of Residual Risk.--
       (1) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study assessing the potential impact 
     and effectiveness of applying the mandatory purchase 
     requirements under sections 102 and 202 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a and 4106) to 
     properties located in areas of residual risk.
       (B) Areas of study.--In carrying out the study required 
     under subparagraph (A), the Comptroller General shall 
     evaluate--
       (i) the regulatory, financial, and economic impact of 
     applying the mandatory purchase requirements described in 
     subparagraph (A) to areas of residual risk on--

       (I) the costs of homeownership;
       (II) the actuarial soundness of the National Flood 
     Insurance Program;
       (III) the Federal Emergency Management Agency;
       (IV) communities located in areas of residual risk;
       (V) insurance companies participating in the National Flood 
     Insurance Program; and
       (VI) the Disaster Relief Fund;

       (ii) the effectiveness of the mandatory purchase 
     requirements in protecting--

       (I) homeowners and taxpayers in the United States from 
     financial loss; and
       (II) the financial soundness of the National Flood 
     Insurance Program;

       (iii) the impact on lenders of complying with or enforcing 
     the mandatory purchase requirements;
       (iv) the methodology that the Administrator uses to 
     adequately estimate the varying levels of residual risk 
     behind levees and other flood control structures; and
       (v) the extent to which the risk premium rates under the 
     National Flood Insurance Program for property in the areas of 
     residual risk behind levees adequately account for--

       (I) the design of the levees;
       (II) the soundness of the levees;
       (III) the hydrography of the areas of residual risk; and
       (IV) any historical flooding in the areas of residual risk.

       (2) Reports.--
       (A) Initial report.--Not later than 12 months after the 
     date on which the Administrator establishes a definition of 
     the term ``area of residual risk'' under subsection (a)(1), 
     the Comptroller General shall submit to Congress a report 
     that--
       (i) contains the results of the study required under 
     paragraph (1); and
       (ii) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.
       (B) Updated report.--Not later than 5 years after the date 
     on which the Comptroller General submits the report under 
     subparagraph (A), the Comptroller General shall--
       (i) update the study conducted under paragraph (1); and
       (ii) submit to Congress an updated report that--

       (I) contains the results of the updated study required 
     under clause (i); and
       (II) provides recommendations to the Administrator on 
     improvements that may result in more accurate estimates of 
     varying levels of residual risk behind levees and other flood 
     control structures.

       (3) Adjustment of methodologies.--The Administrator shall, 
     to the extent practicable, adjust the methodologies used to 
     estimate the varying levels of residual risk behind levees 
     and other flood control structures based on the 
     recommendations submitted by the Comptroller General under 
     subparagraphs (A)(ii) and (B)(ii)(II).
       (c) Study of Voluntary Community-based Flood Insurance 
     Options.--
       (1) Study.--

[[Page 9748]]

       (A) Study required.--The Administrator shall conduct a 
     study to assess options, methods, and strategies for making 
     available voluntary community-based flood insurance policies 
     through the National Flood Insurance Program.
       (B) Considerations.--The study conducted under subparagraph 
     (A) shall --
       (i) take into consideration and analyze how voluntary 
     community-based flood insurance policies--

       (I) would affect communities having varying economic bases, 
     geographic locations, flood hazard characteristics or 
     classifications, and flood management approaches; and
       (II) could satisfy the applicable requirements under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a); and

       (ii) evaluate the advisability of making available 
     voluntary community-based flood insurance policies to 
     communities, subdivisions of communities, and areas of 
     residual risk.
       (C) Consultation.--In conducting the study required under 
     subparagraph (A), the Administrator may consult with the 
     Comptroller General of the United States, as the 
     Administrator determines is appropriate.
       (2) Report by the administrator.--
       (A) Report required.--Not later than 18 months after the 
     date of enactment of this Act, the Administrator shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Financial Services of the 
     House of Representatives a report that contains the results 
     and conclusions of the study conducted under paragraph (1).
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include recommendations for--
       (i) the best manner to incorporate voluntary community-
     based flood insurance policies into the National Flood 
     Insurance Program; and
       (ii) a strategy to implement voluntary community-based 
     flood insurance policies that would encourage communities to 
     undertake flood mitigation activities, including the 
     construction, reconstruction, or improvement of levees, dams, 
     or other flood control structures.
       (3) Report by comptroller general.--Not later than 6 months 
     after the date on which the Administrator submits the report 
     required under paragraph (2), the Comptroller General of the 
     United States shall--
       (A) review the report submitted by the Administrator; and
       (B) submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that contains--
       (i) an analysis of the report submitted by the 
     Administrator;
       (ii) any comments or recommendations of the Comptroller 
     General relating to the report submitted by the 
     Administrator; and
       (iii) any other recommendations of the Comptroller General 
     relating to community-based flood insurance policies.

  Mr. REID. I ask for the yeas and nays on that amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2470 to Amendment No. 2469

  Mr. REID. Mr. President, I have a second-degree amendment, which is 
also at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2470 to amendment No. 2469.

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __.

       This Act shall become effective 7 days after enactment.

                           Amendment No. 2471

  Mr. REID. Mr. President, I have an amendment at the desk to the 
language proposed to be stricken.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes amendment 
     numbered 2471 to the language proposed to be stricken by 
     amendment No. 2468.

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __.

       This title shall become effective 5 days after enactment.

  Mr. REID. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2472 to Amendment No. 2471

  Mr. REID. Mr. President, I have a second-degree amendment at the 
desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2472 to amendment No. 2471.

  The amendment is as follows:

       In the amendment, strike ``5 days'' and insert ``4 days''.


               Motion to Recommit With Amendment No. 2473

  Mr. REID. Mr. President, I have a motion to recommit the bill with 
instructions, which is also at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] moves to recommit the 
     bill, S. 1940, to the Committee on Banking, Housing, and 
     Urban Affairs with instructions to report back forthwith with 
     an amendment numbered 2473.

  The amendment is as follows:

       At the end, add the following new section:

     SEC. __.

       This Act shall become effective 3 days after enactment.

  Mr. REID. I ask for the yeas and nays on that motion.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                           Amendment No. 2474

  Mr. REID. Mr. President, I have an amendment to the instructions at 
the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2474 to the instructions of the motion to recommit 
     S. 1940.

  The amendment is as follows:

       In the amendment, strike ``3 days'' and insert ``2 days''.
  Mr. REID. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 2475 to Amendment No. 2474

  Mr. REID. Mr. President, I have a second-degree amendment at the 
desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2475 to amendment No. 2474.

  The amendment is as follows:

       In the amendment, strike ``2 days'' and insert ``1 day''.

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