[House Report 111-537]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-537

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

 
   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5114) TO EXTEND THE 
  AUTHORIZATION FOR THE NATIONAL FLOOD INSURANCE PROGRAM, TO IDENTIFY 
 PRIORITIES ESSENTIAL TO REFORM AND ONGOING STABLE FUNCTIONING OF THE 
                    PROGRAM, AND FOR OTHER PURPOSES

                                _______
                                

   July 14, 2010.--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. 1517]

    The Committee on Rules, having had under consideration 
House Resolution 1517, by a nonrecord vote, 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. 5114, the 
``Flood Insurance Reform Priorities Act of 2010,'' under a 
structured rule. The resolution provides one hour of general 
debate equally divided and controlled by the chair and ranking 
minority member of the Committee on Financial Services. The 
resolution waives all points of order against consideration of 
the bill except those arising under clause 9 or 10 of rule XXI. 
The resolution provides that the amendment in the nature of a 
substitute recommended by the Committee on Financial Services 
shall be considered as an original bill for the purpose of 
amendment and shall be considered as read. The resolution 
waives all points of order against the amendment in the nature 
of a substitute except those arising under clause 10 of rule 
XXI. This waiver does not affect the point of order available 
under clause 9 of rule XXI (regarding earmark disclosure). The 
resolution makes in order only those amendments printed in this 
report. The 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 division of the question. The resolution waives all 
points of order against the amendments made in order except 
those arising under clause 9 or 10 of rule XXI. The resolution 
provides one motion to recommit with or without instructions. 
The resolution provides that the Chair may entertain a motion 
that the Committee rise only if offered by the chair of the 
Committee on Financial Services or a designee. Finally, the 
resolution provides that the Chair may not entertain a motion 
to strike out the enacting words of the bill.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except those arising under clause 9 or 10 of rule 
XXI) includes a waiver of section 303 of the Congressional 
Budget Act (regarding outyear spending and revenues). The 
waiver of all points of order against the committee amendment 
in the nature of a substitute (except those arising under 
clause 10 of rule XXI) includes a waiver of section 303 of the 
Congressional Budget Act (regarding outyear spending and 
revenues).

                            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. 462

    Date: July 14, 2010.
    Measure: H.R. 5114.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Hensarling (TX), #17, which 
would strike section 18 (Grants for Outreach to Property Owners 
and Renters).
    Results: Defeated 2-6.
    Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 463

    Date: July 14, 2010.
    Measure: H.R. 5114.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Garrett (NJ), #30, which would 
extend the authorizations in the bill to 2012, instead of 2015 
as is in the bill.
    Results: Defeated 2-6.
    Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 464

    Date: July 14, 2010.
    Measure: H.R. 5114.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Neugebauer (TX), #58, which 
would apply the phase in of full actuarial rates that begins 
after three years for certain types of pre-FIRM properties 
(nonresidential properties, second homes, and newly sold pre-
FIRM residences) to all pre-FIRM properties. The phase in 
period, effective date and transition period remain the same.
    Results: Defeated 2-6.
    Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 465

    Date: July 14, 2010.
    Measure: H.R. 5114.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Bachmann (MN), #43, which 
would strike section 22 (relating to flood insurance advocate). 
It also would require the GAO to issue a report on common 
problems insured individuals have in their interactions with 
FEMA and on laws that impose compliance burdens on insurers or 
FEMA. This amendment would direct the GAO to identify potential 
legislative, administrative, or regulatory changes that may be 
appropriate to mitigate such problems.
    Results: Defeated 2-6.
    Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 466

    Date: July 14, 2010.
    Measure: H.R. 5114.
    Motion by: Mr. Dreier.
    Summary of motion: To report an open rule.
    Results: Defeated 2-6.
    Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Waters (CA): Would (1) Phase out subsidized premiums for 
severe repetitive loss properties, substantially damaged or 
improved properties and policyholders who voluntarily allow 
flood coverage to lapse. (2) Clarify application of actuarial 
rate phase-in for pre-FIRM properties sold after enactment. (3) 
Provide preferred rate premium for properties participating in 
NFIP during newly established, 5-year delay in mandatory flood 
insurance purchase requirement. (4) Expand availability of 
installment premium payment program to all policyholders. (5) 
Clarify that the FEMA Director may work directly with property 
owners to make mitigation grants for certain repetitive loss 
properties where States or communities are either unable or 
unwilling to address repetitive loss issues with a property 
owner. (6) Allow commercial properties with swimming pools 
located below the base flood level to enclose those pools with 
breakaway walls outside of hurricane season. (7) Require FEMA 
to review mapping of surrounding properties following 
successful appeal of hazard designation in newly mapped areas. 
(8) Clarify ability of FEMA Administrator to use demolition and 
rebuilding as mitigation techniques. (9) Require study of the 
impact of working waterfronts on storm and flood risk. (10) 
Establish relevant flood insurance related studies. (11) 
Conform rule writing and implementation of various provisions 
of bill. (12) Include other technical improvements. (20 
minutes)
    2. Putnam (FL): Would require the FEMA to annually submit a 
report (no later than December 31 of each calendar year) to 
Congress on the effectiveness of grants awarded to local 
government agencies, the activities conducted and the effect of 
such activities on the retention or acquisition of flood 
insurance coverage. (10 minutes)
    3. Driehaus (OH), Welch (VT), Hinchey (NY): Would provide 
that if the owner of any property located in an area described 
in section 102(i)(1) of the Flood Disaster Protection Act of 
1973 obtains a letter of map amendment during the 5-year period 
for such area referred to in such section, FEMA shall reimburse 
such owner, or such entity or jurisdiction acting on such 
owner's behalf, for any costs incurred in obtaining such 
letter. (10 minutes)
    4. Flake, Jeff (AZ): Would prohibit funds made available 
for grants from being used for earmarks. (10 minutes)
    5. Taylor (MS): Would prohibit the Write Your Own insurance 
companies that contract with NFIP from excluding coverage of 
wind damage under their own policies solely because flooding 
also caused damage to the property. It would establish 
requirements for adjustment by WYO insurers when there are 
claims on the same property, from the same event, for flood 
damage covered by NFIP and for wind damage covered by the WYO 
insurer. (10 minutes)
    6. Miller, Candice (MI): Would require that the Government 
Accountability Office conduct a study on ways the private 
insurance market can contribute to insuring against flood 
damage; the impact on the National Flood Insurance Program if 
communities were to opt out; and the feasibility of 
regionalizing the National Flood Insurance Program so there is 
no cross-subsidization between regions. (10 minutes)
    7. Boswell (IA): Would ensure occupants have relevant 
information on appropriate evacuation routes, and ensure the 
outreach program under the bill includes relevant information 
on where to obtain coverage. (10 minutes)
    8. Hill (IN): Would include ``identifying ways to assist 
communities in efforts to fund the accreditation of flood 
protection systems'' as a function of the Office of the Flood 
Insurance Advocate. (10 minutes)
    9. Loebsack (IA): Would require FEMA to notify a local 
television and radio station of proposed flood elevation 
determinations in addition to the current requirement of 
publication in a prominent local newspaper. Would also require 
FEMA to make such notifications for communities that have not 
yet been issued a Letter of Final Determination through the 
flood insurance map modernization process at the time of 
enactment. (10 minutes)
    10. McMahon (NY): Would (1) permit federal grants to 
educate local real estate agents in communities participating 
in the NFIP regarding the program and the availability of 
coverage under the program for owners and renters of properties 
and (2) establish coordination and liaisons with such agents to 
facilitate purchase of coverage and increase awareness of flood 
risk reduction. (10 minutes)
    11. Murphy, Scott (NY): Would require all funds authorized 
under the Act to be expended in a manner consistent with the 
manual on Standards of Ethical Conduct for Employees of the 
Executive Branch. (10 minutes)

                 TEXT OF AMENDMENTS TO BE MADE IN ORDER

 1. An Amendment To Be Offered by Representative Waters of California, 
               or Her Designee, Debatable for 20 Minutes

  Page 9, strike lines 1 through 3 and insert the following:

SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN PRE-FIRM PROPERTIES, 
                    SEVERE REPETITIVE LOSS PROPERTIES, AND PROPERTIES 
                    SUBSTANTIALLY DAMAGED OR SUBSTANTIALLY IMPROVED.

  Page 9, lines 7 and 8, strike ``paragraph (5)'' and insert 
``paragraph (7)''.
  Page 9, lines 21 and 22, strike ``used as principal 
residences''.
  Page 10, lines 5 and 6, strike ``date of enactment'' and 
insert ``effective date of this paragraph, pursuant to section 
5(c)(1)''.
  Page 10, line 7, strike the quotation marks and the last 
period.
  Page 10, after line 7, insert the following:
          ``(5) Severe repetitive loss properties.--Any severe 
        repetitive loss property, as such term is defined in 
        section 1361A(b), that is so designated as such as a 
        result of losses occurring on or after the date of the 
        enactment of the Flood Insurance Reform Priorities Act 
        of 2010.
          ``(6) Properties substantially damaged or 
        substantially improved.--Any property that, on or after 
        the date of the enactment of the Flood Insurance Reform 
        and Priorities Act of 2010, has experienced or 
        sustained--
                  ``(A) substantial 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.''.
  Page 10, line 20, strike ``paragraph (5)'' and insert 
``paragraph (7)''.
  Page 11, line 7, strike ``or (4)'' and insert ``(4), (5), or 
(6)''.
  Page 12, line 21, strike ``and (4)'' and insert ``(4), (5), 
and (6)''.
  Page 13, line 6, strike ``subsection'' and insert 
``subsections''.
  Page 13, line 13, strike ``September 30, 2008'' and insert 
``September 30, 2007''.
  Page 14, line 22, strike the quotation marks and the last 
period.
  Page 14, after line 22, insert the following:
  ``(j) Availability of Preferred Risk Rating Method 
Premiums.--The preferred risk rate method premium shall be 
available for flood insurance coverage for properties located 
in areas referred to in subsection (i)(1) and during the time 
period referred to in subsection (i)(1).''.
  Page 15, line 13, before ``Section'' insert ``(a) In 
General.--''.
  Page 17, after line 3, insert the following:
  (b) Regulation or Notice.--The Administrator of the Federal 
Emergency Management Agency shall issue an interim final rule 
or notice to implement this section and the amendments made by 
this section as soon as practicable after the date of the 
enactment of this Act.
  Strike line 20 on page 18 and all that follows through page 
19, line 2, and insert the following:
  (b) Regulations.--The Administrator of the Federal Emergency 
Management Agency shall promulgate regulations to implement 
this section and the amendments made by this section as soon as 
practicable, but not more than 18 months after the date of the 
enactment of this Act. Section 5 may not be construed to annul, 
alter, affect, authorize any waiver of, or establish any 
exception to, the requirement under the preceding sentence.
  Page 19, after line 8, insert the following new section:

SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR PROPERTIES PROTECTED BY A 
                    FLOOD-PROTECTION SYSTEM FROM LESS THAN A 100-YEAR 
                    FREQUENCY FLOOD.

  Section 1307 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4014) is amended by adding at the end the following new 
subsection:
  ``(g) Except as provided in subsection (f) and 
notwithstanding any other provision of law, flood insurance 
coverage shall be made available for a property that the 
Director determines is protected by a flood-protection system 
that does not provide protection against a 100-year frequency 
flood at premium rates that reflect a discount for the actual 
protection against flood risk afforded by such flood-protection 
system.''.
  Page 21, after line 21, insert the following new section:

SEC. 11. 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 
Act, is further amended by adding at the end the following new 
subsection:
  ``(i) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--The Director shall not provide flood insurance 
coverage under this title to any prospective insured at a rate 
less than the applicable estimated risk premium rates for the 
area (or subdivision thereof) for any policy under the flood 
insurance program that has lapsed in coverage, as a result of 
the deliberate choice of the holder of such policy.''.
  Page 22, line 25, strike the semicolon and insert a period.
  Page 22, after line 25, insert the following new sections:

SEC. 13. COMMUNITY OUTREACH PLAN FOR UPDATING FLOODPLAIN AREAS AND 
                    FLOOD-RISK ZONES.

  The Administrator of the Federal Emergency Management Agency 
shall, not later than the expiration of the 60-day period 
beginning upon the date of the enactment of this Act, submit to 
the Congress a community outreach plan for the updating of 
floodplain areas and flood-risk zones under section 1360(f) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4101(f)).

SEC. 14. NOTIFICATION OF ESTABLISHMENT OF FLOOD ELEVATIONS.

  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:
  ``(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 Director 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.''.
  Page 27, line 8, strike ``LOW-INCOME POLICYHOLDERS'' and 
insert ``RESIDENTIAL PROPERTIES''.
  Page 27, line 13, strike ``Low-income Policyholders'' and 
insert ``Residential Properties''.
  Page 27, strike line 16 and all that follows through ``is 
employed'' in line 22.
  Page 27, line 23, strike ``monthly''.
  Page 27, after line 23, insert the following new section:

SEC. 19. 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) by redesignating paragraphs (3) and (4) as 
        paragraphs (5) and 6), respectively; and
          (2) by adding inserting after paragraph (2) the 
        following new paragraphs:
          ``(3) Termination of force-placed insurance.--Within 
        15 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.--A lender or 
        servicer for a loan shall accept any reasonable form of 
        written confirmation from a borrower of existing flood 
        insurance coverage, which shall include the existing 
        flood insurance policy number along with the identity 
        of, and contact information for, the insurance company 
        or agent.''.
  Page 30, after line 20, insert the following new section:

SEC. 21. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR 
                    INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.

  (a) Direct Grants to Owners.--Section 1323 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4030) is amended--
          (1) in the section heading, by inserting ``DIRECT'' 
        before ``GRANTS''; and
          (2) in the matter in subsection (a) that precedes 
        paragraph (1)--
                  (A) by inserting ``, to owners of such 
                properties,'' before ``for mitigation 
                actions''; and
                  (B) by striking ``1'' and inserting ``two''.
  (b) Availability of Funds.--Paragraph (9) of section 1310(a) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) 
is amended by inserting ``which shall remain available until 
expended,'' after ``any fiscal year,''.
  Page 31, line 4, strike ``(h)'' and insert ``(i)''.
  Page 33, line 14, strike ``(g)'' and insert ``(i)''.
  Page 34, line 19, strike ``and''.
  Page 34, line 22, strike the period and insert ``; and''.
  Page 34, after line 22 insert the following:
                  ``(F) the number of flood-related major 
                disaster or emergency declarations made by the 
                President with respect to the relevant area 
                under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.) during the preceding five years.
  Page 34, line 25, strike ``(h)'' and insert ``(i)''.
  Page 35, after line 4, insert the following new subsection:
  ``(g) Coordination With Other Agencies.--A local governmental 
agency that receives a grant under this section, and an entity 
that receives amounts pursuant to subsection (f), 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 subsection (b) with respect to such populations or 
constituencies.''.
  Page 35, line 5, strike ``(g)'' and insert ``(h)''.
  Page 35, line 14, strike ``(h)'' and insert ``(i)''.
  Page 35, after line 16, insert the following new section:

SEC. 24. 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.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following 
new section:

``SEC. 1327. 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.''.
  Page 36, line 17, strike ``and'' and insert a comma.
  Page 36, line 17, before the period insert ``, and the 
national flood insurance program''.
  Page 39, line 6, strike ``and''.
  Page 39, line 10, strike the period and insert a semicolon.
  Page 39, after line 10 insert the following:
                  ``(E) facilitate the sharing of the best-
                practices of the Federal Emergency Management 
                Agency amongst all offices of the Agency with 
                respect to the creation and updating of 
                floodplain maps;
                  ``(F) not less than one year after receipt of 
                a request from a community, perform an economic 
                impact analysis for such community on the 
                economic impact of floodplain maps and 
                floodplain map determinations on small 
                businesses, lending, real estate development, 
                and other economic indicators within such 
                community;
                  ``(G) establish a national arbitration panel 
                regarding flood map modernization, with panel 
                members consisting of experts in flood 
                insurance, flood map determination, real estate 
                development, structural engineering, and other 
                such experts, including a representative from 
                the Federal Emergency Management 
                Administration, to allow individuals or 
                communities impacted by a flood map revision to 
                challenge such a revision; such panel may, 
                under such terms and conditions it may 
                establish, temporarily suspend implementation 
                of a floodplain map pending such panel's review 
                of evidence submitted by such individuals or 
                communities as part of such challenge;
                  ``(H) establish a process under which 
                scientific and engineering data, including maps 
                and an explanation of how the Director makes a 
                determination regarding a map revision, will be 
                made publicly available to any interested 
                individuals to be impacted by a flood map 
                revision; and
                  ``(I) establish a process under which each 
                community to be impacted by a flood map 
                revision will be provided an open community 
                forum to consult with and ask questions of 
                representatives of the Federal Emergency 
                Management Administration.
  Page 41, after line 8, insert the following new sections:

SEC. 29. TREATMENT OF PREVIOUSLY MAPPED AREAS.

  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 Previously Mapped Areas.--If the Director 
issues a letter of map revision for an area or a portion of an 
area to correct an error in a recently issued flood insurance 
rate map and such letter results in the designation of such 
area as not having special flood hazards, the Director shall 
reexamine the designation of any areas bordering or abutting 
the area that was the subject of such letter if such areas are 
located within a special flood hazard area. The Director shall 
inform the community and residents within such area of the 
results of such examination no later than one year after the 
date of the initial letter of map revision.

``SEC. 30. REMAPPING OF AREAS WITH IMPROVED 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:
  ```(a) Remapping of Areas With Improved Levees.--If at any 
time any community, any State, the Army Corps of Engineers, or 
any other entity improves any levee system that protects any 
area that is located in an area having special flood hazards 
and the Director determines that such improvement mitigates 
flood risk in a manner that eliminates the risk of flooding in 
the area, the Director shall--
          ```(1) revise and update the floodplain areas and 
        flood risk zones, and the flood insurance maps 
        reflecting such areas and zones, for the areas 
        protected by such levee system so that any requirement 
        under the Flood Disaster Protection Act of 1973 for 
        mandatory purchase of flood insurance does not apply to 
        such area; and
          ```(2) make the updated maps and any information 
        regarding such updating available to the affected 
        communities.'.''.
  Page 41, line 12, strike ``Section'' and insert the 
following:
  (a) Flood Mitigation Assistance Program.--Section
  Page 41, line 15, before the quotation marks insert ``of 
properties to at least base flood elevation or greater, if 
required by any local ordinance''.
  Page 41, after line 15, insert the following:
  (b) Sense of Congress.--It is the sense of Congress that 
section 1366 of the Flood Insurance Act of 1968 (42 U.S.C. 
4104c), as in effect on the day before the date of enactment of 
this Act, authorized the Administrator of the Federal Emergency 
Management Agency to consider property demolition and 
rebuilding as eligible activities under the Flood Mitigation 
Assistance Program. The purpose of the amendment made by 
subsection (a) is to clarify that such authority exists.
  Page 42, line 15, before the period insert ``AND FAMILIES IN 
RURAL COMMUNITIES AND ON INDIAN RESERVATIONS''.
  Page 42, line 21, after ``(42 U.S.C. 1437a(b)))'' insert ``, 
families residing in rural communities, and families who reside 
on Indian reservations,''.
  Page 44, line 14, strike ``and''.
  Page 44, line 20, strike the period and insert a semicolon.
  Page 44, after line 20, insert the following new paragraphs:
          (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.
  Page 45, after line 5, insert the following new sections:

SEC. 36. STUDY REGARDING CERTAIN HARBOR AREAS.

  (a) Study.--The Administrator of the Federal Emergency 
Management Agency shall carry out a study to identify the 
impacts of the National Flood Insurance Program on harbor areas 
that are working waterfronts, which shall--
          (1) identify the models and assumptions used under 
        such program with respect to wave action in working 
        waterfronts and harbors;
          (2) determine whether these are the same models and 
        assumptions used for open or unprotected coast lines;
          (3) identify the assumptions used under such program 
        in modeling V-zones;
          (4) identify the underlying basis for projected 
        impact of waves on working waterfronts,
          (5) identify the frequency with which individual 
        working waterfronts receive revised flood-risk based on 
        the data they provide;
          (6) determine the feasibility of basing flood maps 
        for such working waterfronts on actual historical flood 
        and damage data;
          (7) identify the standards for construction and 
        design of working waterfront infrastructure that would 
        be needed to safely develop commercial buildings in the 
        V-zone;
          (8) determine the economic impacts of the National 
        Flood Insurance Program on working waterfronts and 
        working waterfront dependant businesses;
          (9) identify any new or alternative models that may 
        be used to more accurately reflect the risk of flooding 
        in working waterfronts and harbor environments;
          (10) review the current coastal flood insurance study 
        guidelines and recommended methodologies;
          (11) determine whether methodologies other than those 
        referred to in paragraph (10) should be applied with 
        respect to complicated harbors and open shorelines;
          (12) review where 2-D ST Wave methodology should be 
        applied and where other methodologies should be 
        applied;
          (13) review available data on wave attenuation 
        through pilings and piers and determine whether a 
        physical model for the attenuation of waves in that 
        environment can be undertaken to derive such data; and
          (14) include any other information the Administrator 
        considers relevant to evaluating the flood risk and 
        insurance challenges facing working waterfronts.
  (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Administrator shall submit to the 
Congress a report setting forth the results and conclusions of 
the study, including--
          (1) a description of all of the matters identified 
        and determined pursuant to subsection (a); and
          (2) an analysis of the feasibility of developing a 
        sheltered harbor flood zone for purposes of the 
        National Flood Insurance Program that specifically 
        recognizes the unique challenges faced by working 
        waterfronts and built-up harbors.
  (c) Definition.--In this section, the term ``working 
waterfront'' means real property (including support structures 
over water and other facilities) that provides access to 
coastal waters to persons engaged in commercial fishing, 
recreational fishing business, boatbuilding, aquaculture, or 
other water-dependent coastal-related business and is used for, 
or that supports, commercial fishing, recreational fishing, 
boatbuilding, aquaculture, or other water-dependent coastal-
related business.

SEC. 37. STUDY REGARDING HAZARD MODELING.

  The Administrator of the Federal Emergency Management Agency 
shall conduct a study to identify and assess the impacts, 
including short-term and long-term impacts, of significant 
flooding events and subsequent revisions of hazard modeling and 
mapping since January 1, 2000, on the financial soundness of 
the national flood insurance program. The Administrator may 
enter into an agreement with Water Resources Research 
Institutes to conduct the study under this section. The 
Administrator shall provide for a final report regarding the 
study to be submitted to the Congress not later than the 
expiration of the 16-month period beginning on the date of the 
enactment of this Act. The report may include recommendations 
of the Administrator with respect to revising hazard modeling 
and mapping.
  Strike line 16 on page 46 and all that follows through page 
47, line 7, and insert the following:

SEC. 40. INTERIM FINAL RULEMAKING.

  The Administrator of the Federal Emergency Management Agency 
shall issue an interim final rule to implement the amendments 
made by this Act as soon as practicable, but not more than 18 
months after the date of the enactment of this Act. The 
Administrator of the Federal Emergency Management Agency shall 
issue a final rule within one year after the effective date of 
the interim final rule. In the event that the deadlines in this 
section are not met, the Administrator shall report to the 
Congress monthly on the status of the rulemakings and the 
reasons for the failure to comply with the statutory deadlines.
                              ----------                              


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

  Page 35, strike line 5 and insert the following:
  ``(g) Reporting.--
          ``(1) Local governments.--Each local government 
        agency that''.
  Page 35, after line 13, insert the following new paragraph:
          ``(2) Director.--The Director shall submit an annual 
        report, not later than December 31 of each year, 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 effectiveness of 
        grants awarded under this section to local government 
        agencies, the activities conducted using such grant 
        amounts, and the effect of such activities on the 
        retention or acquisition of flood insurance 
        coverage.''.
                              ----------                              


 3. An Amendment To Be Offered by Representative Driehaus of Ohio, or 
                 His Designee, Debatable for 10 Minutes

  Page 46, after line 15, insert the following new section:

SEC. 30. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS OBTAINING 
                    LETTERS OF MAP AMENDMENT.

  If the owner of any property located in an area described in 
section 102(i)(1) of the Flood Disaster Protection Act of 1973 
(as added by the preceding provisions of this Act) obtains a 
letter of map amendment during the 5-year period for such area 
referred to in such section, the Administrator of the Federal 
Emergency Management Agency shall reimburse such owner, or such 
entity or jurisdiction acting on such owner's behalf, for any 
costs incurred in obtaining such letter.
                              ----------                              


 4. An Amendment To Be Offered by Representative Flake of Arizona, or 
                 His Designee, Debatable for 10 Minutes

  Page 35, line 16, strike the quotation marks and the last 
period.
  Page 35, after line 16, insert the following new subsection:
  ``(i) Prohibition on Earmarks.--No amounts made available for 
grants under this section may be used for a Congressional 
earmark as defined in clause 9(e) of Rule XXI of the Rules of 
the House of Representatives.''.
                              ----------                              


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

  Page 35, after line 16, insert the following new section:

SEC. __. 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 
subsections:
  ``(d) Requirements for Write-Your-Own Insurers Relating to 
Windstorm and Flood.--
          ``(1) Written agreement.--The Director may not 
        utilize the facilities or services of any insurance 
        company or other insurer or entity to offer flood 
        insurance coverage under this title unless such 
        company, insurer, or entity enters into a written 
        agreement with the Director that provides as follows:
                  ``(A) Prohibition on exclusion of wind damage 
                coverage.--The agreement shall prohibit the 
                company, insurer, or entity 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.
                  ``(B) Fiduciary responsibility.--The 
                agreement shall provide that the company, 
                insurer, or entity--
                          ``(i) has a fiduciary duty with 
                        respect to the Federal taxpayers;
                          ``(ii) 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, insurer, or 
                        entity; and
                          ``(iii) will provide written guidance 
                        to each insurance agent and claims 
                        adjuster for the company, insurer, or 
                        entity that sets forth the terms of the 
                        agreement pursuant to subparagraph (A) 
                        and this subparagraph.
          ``(2) Requirements for adjustment of claims.--The 
        Director shall, in utilizing the facilities of any 
        insurance company or other insurer or entity pursuant 
        to this section to offer flood insurance coverage under 
        this title, the Director shall provide as follows:
                  ``(A) Approval of adjustment procedures.--No 
                such insurance company, other insurer, or 
                entity may offer flood insurance coverage under 
                this title unless the Director has approved, as 
                meeting standards as the Director shall 
                establish, the procedures, protocols, 
                guidelines, standards, or instructions used by 
                the company, insurer, or entity in adjusting 
                claims for identifying, apportioning, 
                quantifying, and differentiating damage caused 
                by flooding and damage caused by wind.
                  ``(B) Treatment of wind and flood claims from 
                same event.--The Director shall require any 
                insurance company or other insurer or entity 
                that, pursuant to this section, provides flood 
                insurance coverage under this title for a 
                property and that also provides insurance 
                coverage for the same property for losses 
                resulting from wind, when claims are made both 
                for damage resulting from flood and for damage 
                resulting from wind involved in a single event, 
                to comply with the following requirements:
                          ``(i) Contemporaneous adjustment.--
                        The claims for damage to the property 
                        under the coverage under this title for 
                        losses from flood and under the 
                        coverage for losses from wind shall be 
                        adjusted contemporaneously.
                          ``(ii) Inclusions in flood claim 
                        file.--The insurance company, other 
                        insurer, or entity shall obtain and 
                        include in the file maintained with 
                        respect to any claim under the flood 
                        insurance coverage under this title, 
                        and make available to the Director upon 
                        request, the following information 
                        relating to the wind claim:
                                  ``(I) The amount paid on the 
                                claim and the date of such 
                                payment.
                                  ``(II) An explanation of 
                                rationale used by the company, 
                                insurer, or entity in 
                                determining which damage 
                                resulted from flood and which 
                                damage resulted from wind.
                                  ``(III) Copies of any 
                                photographs, witness 
                                statements, and other evidence 
                                related to the wind or flood 
                                claim.
                          ``(iii) Review.--The Director shall 
                        review the information obtained 
                        pursuant to clause (ii) to ensure 
                        that--
                                  ``(I) claims are paid under 
                                coverage under this title only 
                                for losses resulting from 
                                flood; and
                                  ``(II) in the adjusting the 
                                claims, the insurance company 
                                or other insurer or entity 
                                complied with procedures, 
                                protocols, guidelines, 
                                standards, or instructions for 
                                identifying, apportioning, 
                                quantifying, and 
                                differentiating damage caused 
                                by flooding and damage caused 
                                by wind that have been approved 
                                by the Director as meeting the 
                                standards established by the 
                                Director pursuant to 
                                subparagraph (A).
                          ``(iv) Payment under flood coverage 
                        when cause of loss cannot be 
                        determined.--If the insurance company 
                        or other insurer or entity determines 
                        that the loss claimed was caused by 
                        flooding or wind, but that the evidence 
                        is insufficient to differentiate the 
                        losses caused by flooding from those 
                        caused by wind, the company, insurer, 
                        or entity shall pay the claim under the 
                        flood insurance coverage for the 
                        property as if the entire loss were 
                        caused by flooding, and shall submit 
                        all information regarding the claim to 
                        the Director.
                          ``(v) FEMA determination and 
                        recovery.--In the case of any claim 
                        paid pursuant to clause (iv), the 
                        Director shall review the information 
                        related to the claim and determine, in 
                        accordance with procedures for making 
                        such a determination regarding such 
                        claims as the Director shall establish, 
                        the losses caused by wind. The Director 
                        shall seek to recover any portion of 
                        the losses that the Director determines 
                        were caused by wind from the insurance 
                        company or other insurer or entity 
                        that, pursuant to clause (iv), paid 
                        such losses as flood losses''.
                              ----------                              


   6. An Amendment To Be Offered by Representative Candice Miller of 
          Michigan, or Her Designee, Debatable for 10 Minutes

  At the appropriate place in the bill, insert the following 
new section:

SEC. __. STUDY ON PRIVATE INSURANCE MARKET, COMMUNITY PARTICIPATION IN 
                    THE NATIONAL FLOOD INSURANCE PROGRAM, AND THE 
                    REGIONALIZATION OF THE NATIONAL FLOOD INSURANCE 
                    PROGRAM.

  (a) Study.--The Comptroller General shall conduct a study 
on--
          (1) ways that the private insurance market can 
        contribute to insuring against flood damage;
          (2) the impact on the National Flood Insurance 
        Program if communities decide not to participate in the 
        Program; and
          (3) the feasibility of regionalizing the National 
        Flood Insurance Program and ensuring that there is no 
        cross-subsidization between regions under such Program.
  (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
Congress a report containing the results of the study conducted 
under subsection (a).
                              ----------                              


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

  Page 14, line 11, insert ``appropriate evacuation routes 
under the evacuation plan referred to in subparagraph (A),'' 
after ``risks,''.
  Page 32, line 15, strike ``properties; and'' and insert 
``properties;''.
  Page 32, line 17, strike the period and insert ``; and''.
  Page 32, after line 17 insert the following:
          ``(6) notify such owners of where to obtain 
        information regarding how to obtain such coverage, 
        including a telephone number, mailing address, and 
        Internet site of the Director where such information is 
        available.
                              ----------                              


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

  Page 39, line 6, strike ``and''.
  Page 39, line 10, strike the period and insert ``; and''.
  Page 39, after line 10, insert the following:
                  ``(E) identify ways to assist communities in 
                efforts to fund the accreditation of flood 
                protection systems.
                              ----------                              


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

  Page 41, after line 8, insert the following new section:

SEC. 23. APPEALS.

  (a) Television and Radio Announcement.--Section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is 
amended--
          (1) in subsection (a), by inserting after 
        ``determinations'' by inserting the following: ``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) Applicability.--The amendments made by subsection (a) 
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.
                              ----------                              


 10. An Amendment To Be Offered by Representative McMahon of New York, 
               or His Designee, Debatable for 10 Minutes

  Page 32, line 15, strike ``and''.
  Page 32, line 17, strike the period and insert ``; and''.
  Page 32, after line 17, insert the following:
          ``(6) 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 this Act and increase 
        awareness of flood risk reduction.''.
                              ----------                              


 11. An Amendment To Be Offered by Representative Scott Murphy of New 
            York, or His Designee, Debatable for 10 Minutes

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

SEC. 31. ETHICS COMPLIANCE.

  All funds authorized under this Act or any amendment made by 
this Act shall be expended in a manner that is consistent with 
the manual on Standards of Ethical Conduct for Employees of the 
Executive Branch.

                                  
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