[House Report 110-351]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-351

======================================================================

 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3121) TO RESTORE THE 
   FINANCIAL SOLVENCY OF THE NATIONAL FLOOD INSURANCE PROGRAM AND TO 
  PROVIDE FOR SUCH PROGRAM TO MAKE AVAILABLE MULTIPERIL COVERAGE FOR 
  DAMAGE RESULTING FROM WINDSTORMS AND FLOODS, AND FOR OTHER PURPOSES

                                _______
                                

 September 26, 2007.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Ms. Matsui, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 683]

    The Committee on Rules, having had under consideration 
House Resolution 683, by a record vote of 8 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3121, the 
Flood Insurance Reform and Modernization Act of 2007, under a 
structured rule. The rule provides one hour of general debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Financial Services. The 
rule waives all points of order against consideration of the 
bill except clauses 9 and 10 of rule XXI. The rule provides 
that the amendment in the nature of a substitute recommended by 
the Committee on Financial Services now printed in the bill, 
modified by the amendment printed in Part A of this report, 
shall be considered as adopted. The bill as amended shall be 
considered as an original bill for the purpose of amendment and 
shall be considered as read. The rule waives all points of 
order against provisions in the bill as amended.
    The rule makes in order only those further amendments 
printed in Part B of this report. The further amendments made 
in order may be offered only in the order printed in this 
report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this report equally divided and controlled by 
the proponent and an opponent, shall not be subject to 
amendment, and shall not be subject to a demand for a division 
of the question in the House or in the Committee of the Whole. 
All points of order against the further amendments except for 
clauses 9 and 10 of rule XXI are waived. The rule provides one 
motion to recommit with or without instructions. The rule 
provides that the Chair may postpone further consideration of 
the bill to a time designated by the Speaker.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the bill (except for clauses 9 and 10 of rule 
XXI) and against the bill, as amended, the Committee is not 
aware of any points of order against consideration of the bill 
or against the bill as amended. The waivers of all points of 
order are prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 319

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Mr. Dreier.
    Summary of motion: To grant an open rule.
    Results: Defeated 3-8.
    Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.

Rules Committee record vote No. 320

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Hensarling (TX), #11, which 
would strike Section 7 of the bill which expands the NFIP to 
include wind coverage, and would replace Section 7 with a blue-
ribbon, bipartisan commission, to study and report on 
legislative and regulatory changes that could improve the 
availability and competitiveness of disaster insurance.
    Results: Defeated 3-8.
    Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.

Rules Committee record vote No. 321

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Garrett (NJ), #13, which 
would, after the date of enactment of the bill, require any 
purchaser of a pre-firm primary residential home that costs 
$600,000 or higher to pay phased-in actuarial flood insurance 
prices using the same phase-in structure that non-residential 
and non-primary homes are currently subject to in the 
legislation.
    Results: Defeated 3-8.
    Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.

Rules Committee record vote No. 322

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Hensarling (TX), #15, which 
would terminate all subsidized NFIP rates beginning 5 years 
after enactment.
    Results: Defeated 3-8.
    Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.

Rules Committee record vote No. 323

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Hensarling (TX), #12, which 
would prohibit the offering of multi-peril coverage (like wind 
coverage) under NFIP until such time as the NFIP has fully 
repaid all of the money it borrowed from the Treasury for the 
2005 hurricane season, including interest.
    Results: Defeated 3-8.
    Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.

Rules Committee record vote No. 324

    Date: September 26, 2007.
    Measure: H.R. 3121.
    Motion by: Rep. Hastings (FL).
    Summary of motion: To report the rule.
    Results: Adopted 8-3.
    Vote by Members: Hastings (FL)--Yea; Matsui--Yea; Cardoza--
Yea; Welch--Yea; Castor--Yea; Arcuri--Yea; Sutton--Yea; 
Dreier--Nay; Diaz-Balart--Nay; Hastings (WA)--Nay; Slaughter--
Yea.

               SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

    The amendment strikes the increase in borrowing authority 
available to the National Flood Insurance Program (``NFIP'') in 
order to make the bill compliant with PAYGO.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    (Summaries derived from information provided by sponsors.)
    1. Frank (MA): Manager's Amendment. The manager's amendment 
does the following: (1) requires that homes insured by wind/
water policies comply with existing model building codes from 
the International Code Council pursuant to request from the 
National Association of Home Builders; (2) requires that 
specific technologies be used for mapping floodplains (such as 
geospatial technologies); (3) adds a professional mapping 
association to the Mapping Advisory Council; (4) prohibits FEMA 
from enforcing a penalties assessed against individual condo 
owners where the condo complex is underinsured regarding flood 
coverage; (5) directs FEMA to develop a plan to verify that the 
recipients of Homeowner Assistance Grants in Mississippi and 
Road Home Grants in Louisiana, funded by HUD Community 
Development Block Grants, maintain flood insurance on their 
properties as required as a condition of the grants; and (6) 
codifies recommendations in a recently released GAO report (GAO 
07-1078) with respect to the National Flood Insurance Program's 
payments to insurance companies for their administrative costs 
without requiring the companies to report their costs or to 
comply with the existing audit requirements. (10 minutes)
    2. Cardoza (CA)/Ross (AR)/Reyes (TX): This amendment says 
that people forced to purchase flood insurance as a result of 
the new map who have lived in an area where the levees were 
previously certified, and have now been decertified, will 
receive a grace period of 5 years in which they will be 
entitled to a 50% reduction in their flood insurance premium 
while the levees are being recertified. (10 minutes)
    3. Castor (FL): This amendment commissions a study by the 
GAO to examine the effect of the new multiperil policy on state 
insurance programs. (10 minutes)
    4. Castor (FL): This amendment clarifies some of the 
priorities for wind risk criteria generation. (10 minutes)
    5. Blumenauer (OR)/Welch (VT)/Gilchrest (MD): The amendment 
would require FEMA, when updating and maintaining flood maps, 
to take into consideration the impacts of global warming, the 
potential future impacts of global climate change-related 
weather events, and use the best available climate science in 
assessing flood and storm risks. (10 minutes)
    6. Murphy, Patrick (PA)/Arcuri (NY): This amendment would 
create the position of National Flood Insurance Advocate in 
FEMA which would: (1) transmit a comprehensive report to 
Congress about the major problems facing the Flood Insurance 
Program; and (2) report to Congress about the feasibility and 
effectiveness of establishing an Office of the Flood Insurance 
Advocate, headed by the National Flood Insurance Advocate, to 
assist insureds in resolving problems with FEMA. (10 minutes)
    7. Taylor, Gene (MS): This amendment allows multiple peril 
and flood insurance coverage of apartment buildings up to the 
total of the number of dwelling units times the maximum 
coverage limit per residential unit. (10 minutes)
    8. Taylor, Gene (MS): The amendment prohibits a company 
that sells and services flood insurance policies from including 
language in its own windstorm policies that would exclude 
coverage of wind damage solely because flooding also 
contributed to the damage. The amendment also requires the 
contract between an insurance company and NFIP to state that 
the company has a fiduciary responsibility to federal taxpayers 
and will act in the best interests of NFIP. (10 minutes)
    9. Costello (IL): The amendment provides that no changes in 
flood insurance status can go into effect until the remapping 
process is completed for the entire district of the Corps of 
Engineers affected by that map. (10 minutes)
    10. Green, Gene (TX): This amendment provides a five year 
phase-in of flood insurance premiums for low-income homeowners 
or renters whose primary residence is placed within a flood 
plain through an updating of the flood insurance program maps 
if the value of the home does not exceed 75% of the state 
median home value. (10 minutes)
    11. Berry (AR)/Ross (AR)/Hare (IL)/Emerson (MO)/Hulshof 
(MO)/Costello (IL): The amendment authorizes the Director of 
FEMA to include a note on flood insurance rate maps identifying 
100-year and 500-year certified levees and encouraging property 
owners to evaluate their risk of flooding. The amendment also 
clarifies that the note shall not be considered a legal 
requirement of participation in the national flood insurance 
program. (10 minutes)
    12. Walz (MN): This amendment adds to the flood map 
modernization provisions of H.R. 3121 a requirement that FEMA 
map areas in the 100-year floodplain that would flood if not 
for a ``levee, dam, or other man-made structure.'' (10 minutes)
    13. Stark (CA)/Burton (IN): This amendment requires written 
notification by first class mail to each property owner 
affected by a proposed change in flood elevations, prior to the 
90-day appeal period. Notification would include an explanation 
of the appeal process and contact information for responsible 
officials. (10 minutes)

         PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

    In the heading for section 12, strike ``INCREASE IN'' and 
insert ``REPORT REGARDING''.
  Strike subsection (a) of section 12 (relating to increase in 
borrowing authority).
  In subsection (b) of section 12, strike ``, including any'' 
and all that follows and insert the following: ``that, as of 
the expiration of such period, have been borrowed under the 
authority of section 1309(a) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4016(a)) and not yet repaid as of such 
date.''.
  Strike the subsection designation and heading for subsection 
(b) of section 12.

        PART B--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE


1. An Amendment To Be Offered by Representative Frank of Massachusetts 
               or His Designee, Debatable for 10 Minutes

  In the matter proposed to be inserted by section 7(a)(2) of 
the bill, amend paragraph (2) of subsection (c) to read as 
follows:
          ``(2) Community participation requirement.--
        Multiperil coverage pursuant to this subsection may not 
        be provided in any area (or subdivision thereof) unless 
        an appropriate public body shall have adopted adequate 
        mitigation measures (with effective enforcement 
        provisions) which the Director finds are consistent 
        with the criteria for construction described in the 
        International Code Council building codes relating to 
        wind mitigation.''.
  In the matter proposed to be inserted by section 7(d) of the 
bill, in paragraph (1) of subsection (d) strike ``windstorm-
prone areas as to land management and use, windstorm zoning, 
and windstorm damage prevention'' and inserting ``wind events 
as to wind hazard prevention''.
  In the matter proposed to be inserted by the amendment made 
by section 22(a) of the bill, in subsection (k), redesignate 
paragraphs (4) through (8) as paragraphs (5) through (9), 
respectively.
  In the matter proposed to be inserted by the amendment made 
by section 22(a) of the bill, after subsection (k)(3) insert 
the following new paragraph:
          ``(4) Mapping elements.--Each map updated under this 
        section shall meet the following requirements:
                  ``(A) Ground elevation data.--The maps shall 
                assess the accuracy of current ground elevation 
                data used for hydrologic and hydraulic modeling 
                of flooding sources and mapping of the flood 
                hazard and wherever necessary acquire new 
                ground elevation data utilizing the most up-to-
                date geospatial technologies in accordance with 
                the existing guidelines and specifications of 
                the Federal Emergency Management Agency.
                  ``(B) Data on a watershed basis.--The maps 
                shall develop national flood insurance program 
                flood data on a watershed basis--
                          ``(i) to provide the most technically 
                        effective and efficient studies and 
                        hydrologic and hydraulic modeling; and
                          ``(ii) to eliminate, to the maximum 
                        extent possible, discrepancies in base 
                        flood elevations between adjacent 
                        political subdivisions.
                  ``(C) Other data.--The maps shall include any 
                other relevant information as may be 
                recommended by the Technical Mapping Advisory 
                Council reestablished by section 22(b) of the 
                Flood Insurance Reform and Modernization Act of 
                2007.''.
  In section 22(b)(2)(A), strike ``14'' and insert ``15''.
  In section 22(b)(2)(B), strike ``(N), and (O)'' and insert 
``(O), and (P)''.
  In the matter proposed to be inserted by the amendment made 
by section 22(b)(2)(E) of the bill, after subparagraph (M) 
insert the following new subparagraph:
                  ``(N) a member of a professional mapping 
                association or organization;''.
  At the end of the bill add the following new sections:

SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY ASSESSED ON CONDOMINIUM 
                    ASSOCIATIONS.

  Notwithstanding any other provision of law, the Director of 
the Federal Emergency Management Agency shall not apply or 
enforce any penalty relating to the national flood insurance 
program assessed, during 2005 or thereafter, on condominium 
associations that are underinsured under such program.

SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF WRITE-YOUR-OWN INSURERS; 
                    INDEPENDENT AUDITS.

  Section 1348 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4084) is amended by adding at the end the following new 
subsections:
  ``(c) Any insurance company or other private organization 
executing any contract, agreement, or other appropriate 
arrangement with the Director under this part shall--
          ``(1) annually submit to the Director a record of all 
        administrative and operating costs of the program 
        undertaken; and
          ``(2) biennially submit to the Director an 
        independent audit of the program undertaken that is 
        conducted by a certified public accountant to ensure 
        that payments made are proper and in accordance with 
        this Act.
  ``(d) The Director shall review the records and audits 
submitted under paragraphs (1) and (2) of subsection (c) to 
determine if such payments are reasonable and if the system by 
which the Director makes payments to an insurance company or 
other private organization under this part should be revised.

``SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON MISSISSIPPI 
                    AND LOUISIANA PROPERTIES RECEIVING EMERGENCY 
                    SUPPLEMENTAL FUNDS.

  ``The Director of the Federal Emergency Management Agency 
shall develop and implement a plan to verify that persons 
receiving funds under the Homeowner Grant Assistance Program of 
the State of Mississippi or the Road Home Program of the State 
of Louisiana from amounts allocated to the State of Mississippi 
or the State of Louisiana, respectively, from the Community 
development fund under the Emergency Supplemental 
Appropriations Act to Address Hurricanes in the Gulf of Mexico 
and Pandemic Influenza, 2006 (Public Law 109-148) are 
maintaining flood insurance on the property for which such 
persons receive such funds as required by each such Program.''.
                              ----------                              


2. An Amendment To Be Offered by Representative Cardoza of California, 
               or His Designee, Debatable for 10 Minutes

  At the end of section 22 of the bill, add the following new 
subsection:
  (e) 5-Year Discount of Flood Insurance Rates for Formerly 
Protected Areas.--Section 1308 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015), as amended by the preceding 
provisions of this Act, is further amended--
          (1) in subsection (c), by inserting ``and subsection 
        (g)'' before the first comma; and
          (2) by adding at the end the following new 
        subsection:
  ``(g) 5-Year Discount of Flood Insurance Rates for Formerly 
Protected Areas.--Notwithstanding 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 
previously was not designated as an area having special flood 
hazards because the area was protected by a flood protection 
system and that, pursuant to remapping under section 1360(k), 
becomes designated as such an area as a result of the 
decertification of such flood protection system, during the 5-
year period that begins upon the initial such designation of 
the area, the chargeable premium rate for flood insurance under 
this title with respect to any property that is located within 
such area shall be equal to 50 percent of the chargeable risk 
premium rate otherwise applicable under this title to the 
property.''.
                              ----------                              


 3. An Amendment To Be Offered by Representative Castor of Florida, or 
                 Her Designee, Debatable for 10 Minutes

  At the end of the bill add the following new section:

SEC. __. GAO STUDY OF FACTORS AFFECTING ENROLLMENT IN MULTIPERIL 
                    INSURANCE PROGRAM.

  (a) In General.--The Comptroller General of the United States 
shall conduct a study to identify and analyze factors affecting 
enrollment in the multiperil insurance program. Such study 
shall include a study of the effects of the multiperil 
insurance program on enrollment and pricing of State residual 
property and casualty markets or plans and State catastrophe 
plans.
  (b) Report.--Not later than 270 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
Congress a report containing the conclusions of the study 
conducted under subsection (a).
                              ----------                              


 4. An Amendment To Be Offered by Representative Castor of Florida, or 
                 Her Designee, Debatable for 10 Minutes

  In the matter proposed to be inserted by section 7(d) of the 
bill, in paragraph (2) of subsection (d) strike ``windstorms'' 
and insert ``windstorms, discourage density and intensity or 
range of use increases in locations subject to windstorm 
damage, and enforce restrictions on the alteration of wetlands 
coastal dunes and vegetation and other natural features that 
are known to prevent or reduce such damage''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Blumenauer of Oregon, 
               or His Designee, Debatable for 10 Minutes

  Subsection (k)(2) of section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101), as added by section 
22(a) of the bill, is amended by adding at the end the 
following new subparagraph:
                  ``(C) Effects of global warming.--In updating 
                and maintaining maps under this section, the 
                Director shall--
                          ``(i) take into consideration and 
                        account for the impacts of global 
                        climate change on flood, storm, and 
                        drought risks in the United States;
                          ``(ii) take into consideration and 
                        account for the potential future impact 
                        of global climate change-related 
                        weather events, such as increased 
                        hurricane activity, intensity, storm 
                        surge, sea level rise, and associated 
                        flooding; and
                          ``(iii) use the best available 
                        climate science in assessing flood and 
                        storm risks to determine flood risks 
                        and develop such maps.''.
                              ----------                              


   6. An Amendment To Be Offered by Representative Patrick Murphy of 
        Pennsylvania, or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 30. NATIONAL FLOOD INSURANCE ADVOCATE; REPORTS.

  Chapter II of the National Flood Insurance Act of 1968 is 
amended by inserting after section 1330 (42 U.S.C. 4041) the 
following new section:

``SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE.

  ``(a) Establishment of Position.--
          ``(1) In general.--There shall be in the Federal 
        Emergency Management Agency a National Flood Insurance 
        Advocate. The National Flood Insurance Advocate shall 
        report directly to the Director and shall, to the 
        extent amounts are provided pursuant to subsection (c), 
        be compensated at the same rate as the highest rate of 
        basic pay established for the Senior Executive Service 
        under section 5382 of title 5, United States Code, or, 
        if the Director so determines, at a rate fixed under 
        section 9503 of such title.
          ``(2) Appointment.--The National Flood Insurance 
        Advocate shall be appointed by the Director and the 
        flood insurance advisory committee established pursuant 
        to section 1318 (42 U.S.C. 4025) and without regard to 
        the provisions of title 5, United States Code, relating 
        to appointments in the competitive service or the 
        Senior Executive Service.
          ``(3) Qualifications.--An individual appointed under 
        paragraph (2) shall have--
                  ``(A) a background in customer service as 
                well as insurance; and
                  ``(B) experience in representing individual 
                insureds.
          ``(4) Restriction on employment.--An individual may 
        be appointed as the National Flood Insurance Advocate 
        only if such individual was not an officer or employee 
        of the Federal Emergency Management Agency with duties 
        relating to the national flood insurance program during 
        the 2-year period ending with such appointment and such 
        individual agrees not to accept any employment with the 
        Federal Emergency Management Agency for at least 5 
        years after ceasing to be the National Flood Insurance 
        Advocate. Service as an employee of the National Flood 
        Insurance Advocate shall not be taken into account in 
        applying this paragraph.
          ``(5) Staff.--To the extent amounts are provided 
        pursuant to subsection (c), the National Flood 
        Insurance Advocate may employ such personnel as may be 
        necessary to carry out the duties of the Advocate.
  ``(b) Duties.--The duties of the National Flood Insurance 
Advocate shall be to conduct studies with respect to, and 
submit, the following reports:
          ``(1) Report on problems of insureds under national 
        flood insurance program.--Not later than the expiration 
        of the 12-month period beginning on the date of the 
        enactment of the Flood Insurance Reform and 
        Modernization Act of 2007, the National Flood Insurance 
        Advocate shall submit a report to the Congress 
        regarding the national flood insurance program, which 
        shall--
                  ``(A) identify areas in which insureds under 
                such program have problems in dealings with the 
                Federal Emergency Management Agency relating to 
                such program, and shall contain a summary of at 
                least 20 of the most serious problems 
                encountered by such insureds, including a 
                description of the nature of such problems;
                  ``(B) identify areas of the law relating to 
                the flood insurance that impose significant 
                compliance burdens on such insureds or the 
                Federal Emergency Management Agency, including 
                specific recommendations for remedying such 
                problems;
                  ``(C) identify the 10 most litigated issues 
                for each category of such insureds, including 
                recommendations for mitigating such disputes;
                  ``(D) identify the initiatives of the Agency 
                to improve services for insureds under the 
                national flood insurance program and actions 
                taken by the Agency with respect to such 
                program;
                  ``(E) contain recommendations for such 
                administrative and legislative action as may be 
                appropriate to mitigate or resolve problems 
                encountered by such insureds; and
                  ``(F) include such other information as the 
                National Flood Insurance Advocate considers 
                appropriate.
          ``(2) Report on establishment of an office of the 
        flood insurance advocate.--Not later than the 
        expiration of the 6-month period beginning on the date 
        of the initial appointment of a National Flood 
        Insurance Advocate under this section, the Advocate 
        shall submit a report to the Congress regarding the 
        feasibility and effectiveness of establishing an Office 
        of the Flood Insurance Advocate, headed by the National 
        Flood Insurance Advocate, to assist insureds under the 
        national flood insurance program in resolving problems 
        with the Federal Emergency Management Agency relating 
        to such program. Such report shall examine and analyze, 
        and include recommendations regarding--
                  ``(A) an appropriate structure in which to 
                establish such an Office, and appropriate 
                levels of personnel for such Office;
                  ``(B) other appropriate functions for such an 
                Office, which may include--
                          ``(i) identifying areas in which such 
                        insureds have problems in dealing with 
                        the Agency relating to such program;
                          ``(ii) proposing changes in the 
                        administrative practices of the Agency 
                        to resolve or mitigate problems 
                        encountered by such insureds; and
                          ``(iii) identifying potential 
                        legislative changes which may be 
                        appropriate to resolve or mitigate such 
                        problems;
                  ``(C) appropriate procedures for formal 
                response by the Director to recommendations 
                submitted to the Director by the National Flood 
                Insurance Advocate;
                  ``(D) the feasibility and effectiveness of 
                authorizing the National Flood Insurance 
                Advocate to issue flood insurance assistance 
                orders in cases in which the Advocate 
                determines that a qualified insured is 
                suffering or about to suffer a significant 
                hardship as a result of the manner in which the 
                flood insurance laws are being administered or 
                meets such other requirements may be 
                appropriate, including examining and 
                analyzing--
                          ``(i) appropriate limitations on the 
                        scope and effect of such orders;
                          ``(ii) an appropriate standard for 
                        determining such a significant 
                        hardship;
                          ``(iii) appropriate terms of flood 
                        insurance assistance orders; and
                          ``(iv) appropriate procedures for 
                        modifying or rescinding such orders;
                  ``(E) the feasibility and effectiveness of 
                establishing offices of flood insurance 
                advocates who report to the National Flood 
                Insurance Advocate, including examining and 
                analyzing--
                          ``(i) the appropriate coverage and 
                        geographic allocation of such offices;
                          ``(ii) appropriate procedures and 
                        criteria for referral of inquiries by 
                        insureds under such program to such 
                        offices;
                          ``(iii) allowing such advocates to 
                        consult with appropriate supervisory 
                        personnel of the Agency regarding the 
                        daily operation of the offices; and
                          ``(iv) providing authority for such 
                        advocates not disclose to the Director 
                        contact with, or information provided 
                        by, such an insured;
                  ``(F) appropriate methods for developing 
                career paths for flood insurance advocates 
                referred to in subparagraph (E) who may choose 
                to make a career in the Office of the Flood 
                Insurance Advocate; and
                  ``(G) such other issues regarding the 
                establishment of an Office of the Flood 
                Insurance Advocate as the National Flood 
                Insurance Advocate considers appropriate.
          ``(3) Direct submission of reports.--Each report 
        required under paragraph (2) shall be provided directly 
        to the Congress by the National Flood Insurance 
        Advocate without any prior review or comment from the 
        Director, the Secretary of Homeland Security, or any 
        other officer or employee of the Federal Emergency 
        Management Agency or the Department of Homeland 
        Security, or the Office of Management and Budget.
  ``(c) Authorization of Appropriations.--There are authorized 
to be appropriated for fiscal year 2008 and each fiscal year 
thereafter such sums as may be necessary to carry out this 
section.''.
                              ----------                              


7. An Amendment To Be Offered by Representative Taylor of Mississippi, 
               or His Designee, Debatable for 10 Minutes

    In the matter proposed to be inserted by the amendment made 
by section 7(a)(2) of the bill, in subsection (c)(7)(A), after 
``residential properties'' insert the following: ``, which 
shall include structures containing multiple dwelling units 
that are made available for occupancy by rental 
(notwithstanding any treatment or classification of such 
properties for purposes of section 1306(b))''.
    In the matter proposed to be inserted by the amendment made 
by section 7(a)(2) of the bill, in subsection (c)(7)(A)(ii), 
before the semicolon insert the following: ``, which limit, in 
the case of such a structure containing multiple dwelling units 
that are made available for occupancy by rental, shall be 
applied so as to enable any insured or applicant for insurance 
to receive coverage for the structure up to a total amount that 
is equal to the product of the total number of such rental 
dwelling units in such property and the maximum coverage limit 
per dwelling unit specified in this clause''.
    In section 8 of the bill, strike paragraph (3) and insert 
the following: 
          (2) in paragraph (4)--
                  (A) by striking ``$500,000'' each place such 
                term appears and inserting ``$670,000''; and
                  (B) by inserting before ``; and'' the 
                following: ``; except that, in the case of any 
                nonresidential property that is a structure 
                containing more than one dwelling unit that is 
                made available for occupancy by rental 
                (notwithstanding the provisions applicable to 
                the determination of the risk premium rate for 
                such property), additional flood insurance in 
                excess of such limits shall be made available 
                to every insured upon renewal and every 
                applicant for insurance so as to enable any 
                such insured or applicant to receive coverage 
                up to a total amount that is equal to the 
                product of the total number of such rental 
                dwelling units in such property and the maximum 
                coverage limit per dwelling unit specified in 
                paragraph (2); except that in the case of any 
                such multi-unit, nonresidential rental property 
                that is a pre-FIRM structure (as such term is 
                defined in section 578(b) of the National Flood 
                Insurance Reform Act of 1994 (42 U.S.C. 4014 
                note)), the risk premium rate for the first 
                $500,000 of coverage shall be determined in 
                accordance with section 1307(a)(2) and the risk 
                premium rate for any coverage in excess of such 
                amount shall be determined in accordance with 
                section 1307(a)(1)''.
                              ----------                              


8. An Amendment To Be Offered by Representative Taylor of Mississippi, 
               or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 30. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD.

  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) Requirements for Write-Your-Own Insurers Relating to 
Windstorm and Flood.--The Director may not utilize the 
facilities or services of any insurance company or other 
insurer to offer flood insurance coverage under this title 
unless such company or insurer enters into a written agreement 
with the Director that provides as follows:
          ``(1) Prohibition on exclusion of wind damage 
        coverage.--The agreement shall prohibit the company or 
        insurer from including, in any policy provided by the 
        company or insurer for homeowners' insurance coverage 
        or coverage for damage from windstorms, any provision 
        that excludes coverage for wind or other damage solely 
        because flooding also contributed to damage to the 
        insured property.
          ``(2) Fiduciary responsibility.--The agreement shall 
        provide that the company or insurer--
                  ``(A) has a fiduciary duty with respect to 
                the Federal taxpayers;
                  ``(B) in selling and servicing policies for 
                flood insurance coverage under this title and 
                adjusting claims under such coverage, will act 
                in the best interests the national flood 
                insurance program rather than in the interests 
                of the company or insurer; and
                  ``(C) will provide written guidance to each 
                insurance agent and claims adjuster for the 
                company or insurer setting forth the terms of 
                the agreement pursuant to subparagraphs (A) and 
                (B).''.
                              ----------                              


 9. An Amendment To Be Offered by Representative Costello of Illinois, 
               or His Designee, Debatable for 10 Minutes

  Subsection (k) of section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101), as added by section 
22(a) of the bill, is amended by redesignating paragraph (8) as 
paragraph (9).
  Subsection (k) of section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101), as added by section 
22(a) of the bill, is amended by inserting after paragraph (7) 
the following new paragraph:
          ``(8) Use of maps for rates.--The Director shall not 
        adjust the chargeable premium rate for flood insurance 
        under this title based on an updated national flood 
        insurance program rate map or require the purchase of 
        flood insurance for a property not subject to such a 
        requirement of purchase prior to the updating of such 
        national flood insurance program rate map until an 
        updated national flood insurance program rate map is 
        completed for the entire district of the Corps of 
        Engineers affected by the map, as determined by the 
        district engineer for such district.''.
                              ----------                              


 10. An Amendment To Be Offered by Representative Gene Green of Texas, 
               or His Designee, Debatable for 10 Minutes

  At the end of section 22 of the bill, add the following new 
subsection:
  (e) Phase-in of Flood Insurance Premiums for Low-Cost 
Properties.--Section 1308 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015), as amended by the preceding 
provisions of this Act, is further amended--
          (1) in subsection (c), by inserting ``and subsection 
        (g)'' before the first comma; and
          (2) by adding at the end the following new 
        subsection:
  ``(g) 5-Year Phase-in of Premiums for Newly Covered Low-Cost 
Properties.--
          ``(1) In general.--In the case of any area not 
        previously designated as an area having special flood 
        hazards that becomes designated as such an area as a 
        result of remapping pursuant to section 1360(k), during 
        the 5-year period that begins upon the initial such 
        designation of the area, the chargeable premium rate 
        for flood insurance under this title with respect to 
        any low-cost property that is located within such area 
        shall be--
                  ``(A) for the first year of such 5-year 
                period, 20 percent of the chargeable risk 
                premium rate otherwise applicable under this 
                title to 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.
          ``(2) Low-cost property.--For purposes of this 
        subsection, the term  `low-cost property' means a 
        single-family dwelling, or a dwelling unit in a 
        residential structure containing more than one dwelling 
        unit, that--
                  ``(A) is the principal residence of the owner 
                or renter occupying the dwelling or unit; and
                  ``(B) has a value, at the time of the initial 
                designation of the area having special flood 
                hazards, that does not exceed 75 percent of 
                median home value for the State in which the 
                property is located.''.
                              ----------                              


11. An Amendment To Be Offered by Representative Berry of Arkansas, or 
                 His Designee, Debatable for 10 Minutes

  At the end of the bill add the following new section:

SEC. __. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED 
                    AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED 
                    FLOOD CONTROL STRUCTURE.

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

``SEC. 1362. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED 
                    AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED 
                    FLOOD CONTROL STRUCTURE.

  ``(a) 100-Year Floodplain.--The Director may publish, through 
the publication of a national flood insurance program rate map, 
a note to designate areas protected against at least the 100-
year flood by a certified flood control structure which shall 
read as follows: `NOTE: This area is shown as being protected 
from at least the 1-percent-annual-chance flood hazard by 
levee, dike, or other structure. Overtopping or failure of any 
flood control structure is possible. Property owners are 
encouraged to evaluate their flood risk, based on full and 
accurate information, and to consider flood insurance coverage 
as appropriate.'.
  ``(b) 500-Year Floodplain.--The Director may publish, through 
the issuance of a national flood insurance program rate map, a 
note to designate areas protected against at least the 500-year 
flood by a certified flood control structure which shall read 
as follows: `NOTE: This area is shown as being protected from 
at least the 0.2-percent-annual-chance flood hazard by levee, 
dike, or other structure. Overtopping or failure of any flood 
control structure is possible. Property owners are encouraged 
to evaluate their flood risk, based on full and accurate 
information, and to consider flood insurance coverage as 
appropriate.'.
  ``(c) Effect of Notes.--The publication of a note under 
subsection (a) or (b) shall not be considered a requirement of 
participation in the national flood insurance program.''.
                              ----------                              


12. An Amendment To Be Offered by Representative Walz of Minnesota, or 
                 His Designee, Debatable for 10 Minutes

  Subsection (k)(2)(A)(ii) of section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by 
section 22(a) of the bill, is amended by striking ``and''.
  Subsection (k)(2)(A)(iii) of section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by 
section 22(a) of the bill, is amended by striking the final 
period and inserting ``; and''.
  Subsection (k)(2)(A) of section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101), as added by section 
22(a) of the bill, is amended by adding at the end the 
following new clause:
                          ``(iv) the 100-year floodplain, 
                        including any area that would be in the 
                        100-year floodplain if not protected by 
                        a levee, dam, or other man-made 
                        structure.''.
                              ----------                              


 13. An Amendment To Be Offered by Representative Stark of California, 
               or His Designee, Debatable for 10 Minutes

  In the matter proposed to be inserted by the amendment made 
by section 23 of the bill, in section 1363(a)(2), strike 
``and'' at the end.
  In the matter proposed to be inserted by the amendment made 
by section 23 of the bill, in section 1363(a)(3), strike the 
period at the end and insert ``; and''.
  In the matter proposed to be inserted by the amendment made 
by section 23 of the bill, after paragraph (3) of section 
1363(a) insert the following new paragraph:
          ``(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.''.

                                  
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