[House Report 115-408]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-408
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2874) TO ACHIEVE REFORMS
TO IMPROVE THE FINANCIAL STABILITY OF THE NATIONAL FLOOD INSURANCE
PROGRAM, TO ENHANCE THE DEVELOPMENT OF MORE ACCURATE ESTIMATES OF FLOOD
RISK THROUGH NEW TECHNOLOGY AND BETTER MAPS, TO INCREASE THE ROLE OF
PRIVATE MARKETS IN THE MANAGEMENT OF FLOOD INSURANCE RISKS, AND TO
PROVIDE FOR ALTERNATIVE METHODS TO INSURE AGAINST FLOOD PERIL, AND FOR
OTHER PURPOSES, AND PROVIDING FOR CONSIDERATION OF THE CONFERENCE
REPORT TO ACCOMPANY THE BILL (H.R. 2810) TO AUTHORIZE APPROPRIATIONS
FOR FISCAL YEAR 2018 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF
DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE
DEPARTMENT OF ENERGY, TO PRESCRIBE MILITARY PERSONNEL STRENGTHS FOR
SUCH FISCAL YEAR, AND FOR OTHER PURPOSES
_______
November 13, 2017.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Byrne, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 616]
The Committee on Rules, having had under consideration
House Resolution 616, by a record vote of 8 to 2, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for the consideration H.R. 2874,
the 21st Century Flood Reform Act, under a closed rule. The
resolution provides one hour of 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. The
resolution provides that the amendment printed in part A of
this report, modified by the amendment printed in part B of
this report, shall be considered as adopted and the bill, as
amended, shall be considered as read. The resolution waives all
points of order against provisions in the bill, as amended. The
resolution provides one motion to recommit with or without
instructions.
Section 2 of the resolution provides for consideration of
the Conference Report to accompany H.R. 2810, the National
Defense Authorization Act for Fiscal Year 2018. The resolution
waives all points of order against the conference report and
against its consideration. The resolution provides that the
conference report shall be considered as read. The resolution
provides that the previous question shall be considered as
ordered without intervention of any motion except one hour of
debate and one motion to recommit if applicable. Debate on the
conference report is divided pursuant to clause 8(d) of rule
XXII.
Section 3 of the resolution provides that the Clerk shall
not transmit to the Senate a message that the House has adopted
the conference report to accompany H.R. 2810 until notified by
the Speaker or by message from the Senate that the Senate has
passed H.R. 4374 without amendment.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
H.R. 2874 includes a waiver of the following:
Section 302(f) of the Congressional Budget Act,
which prohibits consideration of legislation providing new
budget authority in excess of a 302(a) allocation of such
authority; and
Section 311 of the Congressional Budget Act, which
prohibits consideration of legislation that would cause the
level of total new budget authority for the first fiscal year
to be exceeded, or for the total of that first fiscal year for
which allocations are provided.
Although the resolution waives all points of order against
provisions in the H.R. 2874, as amended, the Committee is not
aware of any points of order. The waiver is prophylactic in
nature.
The waiver of all points of order against the conference
report to H.R. 2810 and its consideration includes a waiver of
the following:
Clause 5 of rule XXII, which prohibits House
conferees from agreeing to certain Senate amendments proposing
an appropriation on a bill other than a general appropriation
bill.
Clause 9 of rule XXII, which prohibits the
inclusion of matter in a conference report not committed to the
conference by either House and;
Section 306 of the Congressional Budget Act, which
prohibits consideration of legislation within the jurisdiction
of the Committee on the Budget unless referred to or reported
by the Budget Committee.
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. 140
Motion by Ms. Slaughter to report an open rule. Defeated:
2-8
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................ ............ Ms. Slaughter..................... Yea
Mr. Woodall..................................... Nay Mr. McGovern...................... ............
Mr. Burgess..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Collins..................................... Nay Mr. Polis......................... ............
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Buck........................................ Nay
Ms. Cheney...................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 141
Motion by Mr. Woodall to report the rule. Adopted: 8-2
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................ ............ Ms. Slaughter..................... Nay
Mr. Woodall..................................... Yea Mr. McGovern...................... ............
Mr. Burgess..................................... Yea Mr. Hastings of Florida........... Nay
Mr. Collins..................................... Yea Mr. Polis......................... ............
Mr. Byrne....................................... Yea
Mr. Newhouse.................................... Yea
Mr. Buck........................................ Yea
Ms. Cheney...................................... Yea
Mr. Sessions, Chairman.......................... Yea
----------------------------------------------------------------------------------------------------------------
SUMMARY OF THE AMENDMENT TO H.R. 2874 IN PART A CONSIDERED AS ADOPTED
Duffy (WI), Hensarling (TX), Barr (KY), Budd (NC), Davidson
(OH), Hill (AR), Huizenga (MI), Kustoff (TN), Loudermilk (GA),
Love (UT), MacArthur (NJ), McHenry (NC), Mooney (WV), Poliquin
(ME), Ross (FL), Rothfus (PA), Royce (CA), Stivers (OH), Trott
(MI), Williams (TX), Zeldin (NY): Reauthorizes the National
Flood Insurance Program (NFIP) for five years. Institutes
several programmatic reforms and changes to strength the
solvency of the NFIP, provide new benefits to policyholders,
and provide new options for lower-cost flood insurance
coverage. The substitute combines the amended text of H.R. 2874
with the versions of the following other Financial Services-
reported NFIP bills: H.R. 1422, H.R. 1558, H.R. 2246, H.R.
2565, H.R. 2868, and H.R. 2875.
SUMMARY OF THE AMENDMENT TO H.R. 2874 IN PART B CONSIDERED AS ADOPTED
Duffy (WI): Allows future residential structures continued
access to both NFIP and private flood coverage, establish
January 1, 2019 as the effective date for commercial properties
to opt-out of the NFIP, and correct a technical error in
Section 607 regarding improved disclosure requirements.
PART A--TEXT OF AMENDMENT TO H.R. 2874 CONSIDERED AS ADOPTED
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``21st Century
Flood Reform Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title and table of contents.
TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION
Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Annual limitation on premium increases.
Sec. 103. Flood insurance affordability program.
Sec. 104. Disclosure of premium methodology.
Sec. 105. Consideration of coastal and inland locations in premium
rates.
Sec. 106. Monthly installment payment of premiums.
Sec. 107. Enhanced clear communication of flood risks.
Sec. 108. Availability of flood insurance information upon request.
Sec. 109. Disclosure of flood risk information upon transfer of
property.
Sec. 110. Voluntary community-based flood insurance pilot program.
Sec. 111. Use of replacement cost in determining premium rates.
Sec. 112. Cap on premiums.
Sec. 113. Premium rates for certain mitigated properties.
Sec. 114. Study of flood insurance coverage for units in cooperative
housing.
Sec. 115. Pilot program for properties with preexisting conditions.
Sec. 116. Federal Flood Insurance Advisory Committee.
Sec. 117. Interagency guidance on compliance.
Sec. 118. GAO study of claims adjustment practices.
Sec. 119. GAO study of flood insurance coverage treatment of earth
movement.
Sec. 120. Definitions.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT
Sec. 201. Private flood insurance.
Sec. 202. Opt-out of mandatory coverage requirement for commercial
properties.
Sec. 203. Elimination of non-compete requirement.
Sec. 204. Public availability of program information.
Sec. 205. Refund of premiums upon cancellation of policy because of
replacement with private flood insurance.
Sec. 206. GAO study of flood damage savings accounts.
Sec. 207. Demonstration program for flood damage savings accounts.
TITLE III--MAPPING FAIRNESS
Sec. 301. Use of other risk assessment tools in determining premium
rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard
areas.
Sec. 304. Communication and outreach regarding map changes.
Sec. 305. Sharing and use of maps and data.
Sec. 306. Community flood maps.
TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED
MITIGATION
Sec. 401. Provision of Community Rating System premium credits to
maximum number of communities practicable.
Sec. 402. Community accountability for repetitively flooded areas.
Sec. 403. Increased cost of compliance coverage.
TITLE V--PROGRAM INTEGRITY
Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability
surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive lifetime
claims.
Sec. 506. Prohibition of new coverage for structures with high-value
replacement costs.
Sec. 507. Pay for performance and streamlining costs and reimbursement.
Sec. 508. Enforcement of mandatory purchase requirements.
Sec. 509. Satisfaction of mandatory purchase requirement in States
allowing all-perils policies.
Sec. 510. Flood insurance purchase requirements.
Sec. 511. Clarifications; deadline for approval of claims.
Sec. 512. Risk transfer requirement.
Sec. 513. GAO study of simplification of National Flood Insurance
Program.
Sec. 514. GAO study on enforcement of mandatory purchase requirements.
TITLE VI--ADMINISTRATIVE REFORMS
Sec. 601. Penalties for fraud and false statements in the National Flood
Insurance Program.
Sec. 602. Enhanced policyholder appeals process rights.
Sec. 603. Deadline for approval of claims.
Sec. 604. Litigation process oversight and reform.
Sec. 605. Prohibition on hiring disbarred attorneys.
Sec. 606. Technical assistance reports.
Sec. 607. Improved disclosure requirement for standard flood insurance
policies.
Sec. 608. Reserve Fund amounts.
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 610. Limited exemption for disaster or catastrophe claims
adjusters.
TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION
SEC. 101. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Financing.--Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``September 30, 2017'' and inserting ``September 30,
2022''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2017'' and inserting ``September 30, 2022''.
SEC. 102. ANNUAL LIMITATION ON PREMIUM INCREASES.
Section 1308(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(e)) is amended--
(1) in paragraph (1), by striking ``18 percent'' and
inserting ``15 percent''; and
(2) in paragraph (2)--
(A) by striking ``5 percent'' and inserting
``6.5 percent''; and
(B) by inserting before the semicolon at the
end the following: ``, except that (A) during
the 12-month period on the date of the
enactment of the 21st Century Flood Reform Act
this paragraph shall be applied by substituting
`5 percent' for `6.5 percent', (B) during the
12-month period beginning upon the expiration
of the period referred to in clause (A), this
paragraph shall be applied by substituting `5.5
percent' for `6.5 percent', and (C) during the
12-month period beginning upon the expiration
of the period referred to in clause (B), this
paragraph shall be applied by substituting `6.0
percent' for `6.5 percent'''.
SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by adding at the end the
following new section:
``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.
``(a) Authority.--The Administrator shall carry out a program
under this section to provide financial assistance, through
State programs carried out by participating States, for
eligible low-income households residing in eligible properties
to purchase policies for flood insurance coverage made
available under this title.
``(b) Participation.--Participation in the program under this
section shall be voluntary on the part of a State or consortium
of States.
``(c) State Administration.--Each participating State shall
delegate to a State agency or nonprofit organization the
responsibilities for administrating the State's program under
this section.
``(d) Eligible Households.--
``(1) In general.--During any fiscal year, assistance
under the program under this section may be provided
only for a household that has an income, as determined
for such fiscal year by the participating State in
which such household resides, that is less than the
income limitation established for such fiscal year for
purposes of the State program by the participating
State, except that--
``(A) assistance under the program under this
section may not be provided for a household
having a income that exceeds the greater of--
``(i) the amount equal to 150 percent
of the poverty level for such State; or
``(ii) the amount equal to 60 percent
of the median income of households
residing in such State; and
``(B) a State may not exclude a household
from eligibility in a fiscal year solely on the
basis of household income if such income is
less than 110 percent of the poverty level for
the State in which such household resides.
``(2) State verification of income eligibility.--In
verifying income eligibility for purposes of paragraph
(1), the participating State may apply procedures and
policies consistent with procedures and policies used
by the State agency administering programs under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.), under title XX of the Social Security Act (42
U.S.C. 1397 et seq.), under subtitle B of title VI of
the Omnibus Budget Reconciliation Act of 1981 (42
U.S.C. 9901 et seq.; relating to community services
block grant program), under any other provision of law
that carries out programs which were administered under
the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et
seq.) before August 13, 1981, or under other income
assistance or service programs (as determined by the
State).
``(3) Certification by state of eligibility
households.--For each fiscal year, each participating
State shall certify to the Administrator compliance of
households who are to be provided assistance under the
State program during such fiscal year with the income
requirements under paragraph (1).
``(e) Eligible Properties.--Assistance under the program
under this section may be provided only for a residential
property--
``(1) that has 4 or fewer residences;
``(2) that is owned and occupied by an eligible
household;
``(3) for which a base flood elevation is identified
on a flood insurance rate map of the Administrator that
is in effect;
``(4) for which such other information is available
as the Administrator considers necessary to determine
the flood risk associated with such property; and
``(5) that is located in a community that is
participating in the national flood insurance program.
``(f) Types of Assistance.--Under the program under this
section, a participating State shall elect to provide financial
assistance for eligible households in one of the following
forms:
``(1) Limitation on rate increases.--By establishing
a limitation on the rate of increases in the amount of
chargeable premiums paid by eligible households for
flood insurance coverage made available under this
title.
``(2) Limitation on rates.--By establishing a
limitation on the amount of chargeable premiums paid by
eligible households for flood insurance coverage made
available under this title.
``(g) Notification to FEMA.--Under the program under this
section, a participating State shall, on a fiscal year basis
and at the time and in the manner provided by the
Administrator--
``(1) identify for the Administrator the eligible
households residing in the State who are to be provided
assistance under the State program during such fiscal
year; and
``(2) notify the Administrator of the type and levels
of assistance elected under subsection (f) to be
provided under the State program with respect to such
eligible households residing in the State.
``(h) Amount of Assistance.--Under the program under this
section, in each fiscal year the Administrator shall,
notwithstanding section 1308, make flood insurance coverage
available for purchase by households identified as eligible
households for such fiscal year by a participating State
pursuant to subsection (e) at chargeable premium rates that are
discounted by an amount that is based on the type and levels of
assistance elected pursuant to subsection (f) by the
participating State for such fiscal year.
``(i) Billing Statement.--In the case of an eligible
household for which assistance under the program under this
section is provided with respect to a policy for flood
insurance coverage, the annual billing statement for such
policy shall include statements of the following amounts:
``(1) The estimated risk premium rate for the
property under section 1307(a)(1).
``(2) If applicable, the estimated risk premium rate
for the property under section 1307(a)(2).
``(3) The chargeable risk premium rate for the
property taking into consideration the discount
pursuant to subsection (h).
``(4) The amount of the discount pursuant to
subsection (h) for the property.
``(5) The number and dollar value of claims filed for
the property, over the life of the property, under a
flood insurance policy made available under the Program
and the effect, under this Act, of filing any further
claims under a flood insurance policy with respect to
that property.
``(j) Funding Through State Affordability Surcharges.--
``(1) Imposition and collection.--Notwithstanding
section 1308, for each fiscal year in which flood
insurance coverage under this title is made available
for properties in a participating State at chargeable
premium rates that are discounted pursuant to
subsection (f), the Administrator shall impose and
collect a State affordability surcharge on each policy
for flood insurance coverage for a property located in
such participating State that is (A) not a residential
property having 4 or fewer residences, or (B) is such a
residential property but is owned by a household that
is not an eligible household for purposes of such
fiscal year.
``(2) Amount.--The amount of the State affordability
surcharge imposed during a fiscal year on each such
policy for a property in a participating State shall
be--
``(A) sufficient such that the aggregate
amount of all such State affordability
surcharges imposed on properties in such
participating State during such fiscal year is
equal to the aggregate amount by which all
policies for flood insurance coverage under
this title sold during such fiscal year for
properties owned by eligible households in the
participating State are discounted pursuant to
subsection (f); and
``(B) the same amount for each property in
the participating State being charged such a
surplus.
``(k) Treatment of Other Surcharges.--The provision of
assistance under the program under this section with respect to
any property and any limitation on premiums or premium
increases pursuant to subsection (f) for the property shall not
affect the applicability or amount of any surcharge under
section 1308A for the property, of any increase in premiums
charged for the property pursuant to section 1310A(c), or of
any equivalency fee under section 1308B for the property.
``(l) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Participating state.--The term `participating
State' means, with respect to a fiscal year, a State
that is participating in the program under this section
for such fiscal year.
``(2) Eligible household.--The term `eligible
household' means, with respect to a fiscal year and a
participating State, a household that has an income
that is less than the amount of the income limitation
for the fiscal year established for purposes of the
State program of such participating State pursuant to
subsection (g)(1).
``(3) Poverty level.--The term `poverty level''
means, with respect to a household in any State, the
income poverty line as prescribed and revised at least
annually pursuant to section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), as
applicable to such State.
``(4) State.--The term `State' shall include a
consortium of States established for purposes of
administrating the program under this section with
respect to the member States of the consortium.
``(5) State program.--The term `State program' means
a program carried out in compliance with this section
by a participating State in conjunction with the
program under this section of the Administrator.
``(m) Regulations.--The Administrator shall issue such
regulations as may be necessary to carry out the program under
this section.''.
SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY.
Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015) is amended by adding at the end the following new
subsection:
``(n) Disclosure of Premium Methodology.--
``(1) Disclosure.--Six months prior to the effective
date of risk premium rates, the Administrator shall
cause to be published in the Federal Register an
explanation of the bases for, and methodology used to
determine, the chargeable premium rates to be effective
for flood insurance coverage under this title.
``(2) Alignment with industry practices.--The
disclosure required under paragraph (1) shall, to the
extent practicable, be aligned with industry patterns
and practices and shall include information and data
recommended by the State insurance commissioners
guidelines on rate filings.
``(3) Public meetings.--The Administrator shall, on
an annual basis, hold at least one public meeting in
each of the geographical regions of the United States,
as defined by the Administrator for purposes of the
National Flood Insurance Program, for the purpose of
explaining the methodology described in paragraph (1)
and answering questions and receiving comments
regarding such methodology. The Administrator shall
provide notice of each such public meeting in advance,
in such manner, and in using such means as are
reasonably designed to notify interested parties and
members of the public of the date and time, location,
and purpose of such meeting, and of how to submit
questions or comments.''.
SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN PREMIUM
RATES.
(a) Estimates of Premium Rates.--Subparagraph (A) of section
1307(a)(1) of the National Flood Insurance Act of 1968 (42
U.S.C. 4014(a)(1)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
and
(2) by adding at the end the following new clause:
``(iii) the differences in flood risk
for properties impacted by coastal
flood risk and properties impacted by
riverine, or inland flood risk; and''.
(b) Establishment of Chargeable Premium Rates.--Paragraph (1)
of section 1308(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(b)(1)) is amended by inserting ``due to
differences in flood risk resulting from coastal flood hazards
and riverine, or inland flood hazards and'' after ``including
differences in risks''.
(c) Revised Rates.--Not later than the expiration of the two-
year period beginning on the date of the enactment of this Act,
the Administrator of the Federal Emergency Management Agency
shall revise risk premium rates under the National Flood
Insurance Program to implement the amendments made by this
section.
SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.
(a) Authority.--Subsection (g) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is
amended--
(1) by striking the subsection designation and all
that follows through ``With respect'' and inserting the
following:
``(g) Frequency of Premium Collection.--
``(1) Options.--With respect''; and
(2) by adding at the end the following:
``(2) Monthly installment payment of premiums.--
``(A) Exemption from rulemaking.--Until such
time as the Administrator promulgates
regulations implementing paragraph (1) of this
subsection, the Administrator may adopt
policies and procedures, notwithstanding any
other provisions of law and in alignment and
consistent with existing industry escrow and
servicing standards, necessary to implement
such paragraph without undergoing notice and
comment rulemaking and without conducting
regulatory analyses otherwise required by
statute, regulation, or Executive order.
``(B) Pilot program.--The Administrator may
initially implement paragraph (1) of this
subsection as a pilot program that provides for
a gradual phase-in of implementation.
``(C) Policyholder protection.--The
Administrator may--
``(i) during the 12-month period
beginning on the date of the enactment
of this subparagraph, charge
policyholders choosing to pay premiums
in monthly installments a fee for the
total cost of the monthly collection of
premiums not to exceed $25 annually;
and
``(ii) after the expiration of the
12-month period referred to in clause
(i), adjust the fee charged annually to
cover the total cost of the monthly
collection of premiums as determined by
the report submitted pursuant to
subparagraph (D).
``(D) Report.--Not later than six months
after the date of the enactment of this Act,
the Comptroller General shall submit a report
to the Committee on Financial Services of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the
Senate, that sets forth all of the costs
associated with the monthly payment of
premiums, including any up-front costs
associated with infrastructure development, the
impact on all policyholders including those
that exercise the option to pay monthly and
those that do not, options for minimizing the
costs, particularly the costs to policyholders,
and the feasibility of adopting practices that
serve to minimize costs to policyholders such
as automatic payments and electronic payments.
``(E) Annual reports.--On an annual basis,
the Administrator shall report to the Committee
on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate the
ongoing costs associated with the monthly
payment of premiums.''.
(b) Implementation.--Clause (ii) of section 1307(a)(1)(B) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(B)(ii)) is amended by inserting before ``any
administrative expenses'' the following: ``the costs associated
with the monthly collection of premiums provided for in section
1308(g) (42 U.S.C. 4015(g)), but only if such costs exceed the
operating costs and allowances set forth in clause (i) of this
subparagraph, and''.
SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.
(a) In General.--Subsection (l) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is
amended to read as follows:
``(l) Clear Communications.--
``(1) Newly issued and renewed policies.--For all
policies for flood insurance coverage under the
National Flood Insurance Program that are newly issued
or renewed, the Administrator shall clearly communicate
to policyholders--
``(A) their full flood risk determinations,
regardless of whether their premium rates are
full actuarial rates; and
``(B) the number and dollar value of claims
filed for the property, over the life of the
property, under a flood insurance policy made
available under the Program and the effect,
under this Act, of filing any further claims
under a flood insurance policy with respect to
that property.''.
(b) Effective Date.--Subsection (l) of section 1308 of the
National Flood Insurance Act of 1968, as added by subsection
(a) of this section, shall take effect beginning upon the
expiration of the 12-month period that begins on the date of
the enactment of this Act. Such subsection (l), as in effect
immediately before the amendment made by paragraph (1), shall
apply during such 12-month period.
SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON REQUEST.
Section 1313 of the National Flood Insurance Act of 1968 (42
U.S.C. 4020) is amended--
(1) by inserting ``(a) Public Information and Data.--
'' after ``Sec. 1313.''; and
(2) by adding at the end the following new
subsection:
``(b) Availability of Flood Insurance Information Upon
Request.--Not later than 30 days after a request for such
information by the current owner of a property, the
Administrator shall provide to the owner any information,
including historical information, available to the
Administrator on flood insurance program coverage, payment of
claims, and flood damages for the property at issue, and any
information the Administrator has on whether the property owner
may be required to purchase coverage under the National Flood
Insurance Program due to previous receipt of Federal disaster
assistance, including assistance provided by the Small Business
Administration, the Department of Housing and Urban
Development, or the Federal Emergency Management Agency, or any
other type of assistance that subjects the property to the
mandatory purchase requirement under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a).''.
SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF
PROPERTY.
(a) In General.--Chapter 1 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 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. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF
PROPERTY.
``(a) Requirement for Participation in Program.--After
September 30, 2022, no new flood insurance coverage may be
provided under this title for any real property located in any
area (or subdivision thereof) unless an appropriate body has
imposed, by statute or regulation, a duty on any seller or
lessor of improved real estate located in such area to provide
to any purchaser or lessee of such property a property flood
hazard disclosure which the Administrator has determined meets
the requirements of subsection (b).
``(b) Disclosure Requirements.--A property flood hazard
disclosure for a property shall meet the requirements of this
subsection only if the disclosure--
``(1) is made in writing;
``(2) discloses any actual knowledge of the seller or
lessor of--
``(A) prior physical damage caused by flood
to any building located on the property;
``(B) prior insurance claims for losses
covered under the National Flood Insurance
Program or private flood insurance with respect
to such property;
``(C) any previous notification regarding the
designation of the property as a multiple loss
property; and
``(D) any Federal legal obligation to obtain
and maintain flood insurance running with the
property, such as any obligation due to a
previous form of disaster assistance under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act received by any owner
of the property; and
``(3) is delivered by or on behalf of the seller or
lessor to the purchaser or lessee before such purchaser
or lessee becomes obligated under any contract for
purchase or lease of the property.''.
(b) Availability of Flood Insurance Coverage.--Subsection (c)
of section 1305 of the National Flood Insurance Act of 1968 (42
U.S.C. 4012(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) given satisfactory assurance that by September
30, 2022, property flood hazard disclosure requirements
will have been adopted for the area that meet the
requirements of section 1326.''.
SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT PROGRAM.
(a) Establishment.--The Administrator of the Federal
Emergency Management Agency (in this section referred to as the
``Administrator'') may carry out a community-based flood
insurance pilot program to make available, for purchase by
participating communities, a single, community-wide flood
insurance policy under the National Flood Insurance Program
that--
(1) covers all residential and non-residential
properties within the community; and
(2) satisfies, for all such properties within the
community, the mandatory purchase requirements under
section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a).
(b) Participation.--Participation by a community in the pilot
program under this section shall be entirely voluntary on the
part of the community.
(c) Requirements for Community-wide Policies.--The
Administrator shall ensure that a community-wide flood
insurance policy made available under the pilot program under
this section incorporates the following requirements:
(1) A mapping requirement for properties covered by
the policy.
(2) A cap on premiums.
(3) A deductible.
(4) Certification or accreditation of mitigation
infrastructure when available and appropriate.
(5) A community audit.
(6) The Community Rating System under section 1315(b)
of the National Flood Insurance Act of 1968 (42 U.S.C.
4022(b)).
(7) A method of preventing redundant claims payments
by the National Flood Insurance Program in the case of
a claim by an individual property owner who is covered
by a community-wide flood insurance policy and an
individual policy obtained through the Program.
(8) Coverage for damage arising from flooding that
complies with the standards under the National Flood
Insurance Program appropriate to the nature and type of
property covered.
(d) Timing.--The Administrator may establish the
demonstration program under this section not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act and the program shall terminate on
September 30, 2022.
(e) Definition of Community.--For purposes of this section,
the term ``community'' means any unit of local government,
within the meaning given such term under the laws of the
applicable State.
SEC. 111. USE OF REPLACEMENT COST IN DETERMINING PREMIUM RATES.
(a) Study of Risk Rating Redesign Flood Insurance Premium
Rating Options.--
(1) Study.--The Administrator of the Federal
Emergency Management Agency shall conduct a study to--
(A) evaluate insurance industry best
practices for risk rating and classification,
including practices related to replacement cost
value in premium rate estimations;
(B) assess options, methods, and strategies
for including replacement cost value in the
Administrator's estimates under section
1307(a)(1) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(a)(1));
(C) provide recommendations for including
replacement cost value in the estimate of the
risk premium rates for flood insurance under
such section 1307(a)(1);
(D) identify an appropriate methodology to
incorporate replacement cost value into the
Administrator's estimates under such section
1307(a)(1);
(E) develop a feasible implementation plan
and projected timeline for including
replacement cost value in the estimates of risk
premium rates for flood insurance made
available under the National Flood Insurance
Program.
(2) Report.--
(A) Requirement.--Not later than the
expiration of the 12-month period beginning on
the date of the enactment of this Act, the
Administrator shall submit to the Committee on
Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a
report that contains the results and
conclusions of the study required under
paragraph (1).
(B) Contents.--The report submitted under
subparagraph (A) shall include--
(i) an analysis of the
recommendations resulting from the
study under paragraph (1) and any
potential impacts on the National Flood
Insurance Program, including cost
considerations;
(ii) a description of any actions
taken by the Administrator to implement
the study recommendations; and
(iii) a description of any study
recommendations that have been deferred
or not acted upon, together with a
statement explaining the reasons for
such deferral or inaction.
(b) Use of Replacement Cost Value in Premium Rates;
Implementation.--
(1) Estimated rates.--Paragraph (1) of section
1307(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4014(a)(1)) is amended, in the matter preceding
subparagraph (A), by inserting after ``flood
insurance'' the following: ``, which shall incorporate
replacement cost value, and''.
(2) Chargeable rates.--Subsection (b) of section 1308
of the National Flood Insurance Act of 1968 (42 U.S.C.
4015(b)) is amended, in the matter preceding paragraph
(1), by inserting after ``Such rates'' the following:
``shall incorporate replacement cost value and''.
(3) Effective date.--The amendments under paragraphs
(1) and (2) of this subsection shall be made upon the
expiration of the 12-month period beginning on the date
of the enactment of this Act.
(4) Applicability and phase-in.--The Administrator of
the Federal Emergency Management Agency shall apply the
amendments under paragraphs (1) and (2) to flood
insurance coverage made available under the National
Flood Insurance Act of 1968 for properties located in
various geographic regions in the United States such
that--
(A) over the period beginning upon the
expiration of the period referred to in
paragraph (3) of this subsection and ending on
December 31, 2020, the requirement under such
amendments shall be gradually phased in
geographically throughout the United States as
sufficient information for such implementation
becomes available; and
(B) after the expiration of such period
referred to in subparagraph (A), such
amendments shall apply to all flood insurance
coverage made available under the National
Flood Insurance Act of 1968.
SEC. 112. CAP ON PREMIUMS.
Paragraph (1) of section 1308(e) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
(1) by striking ``except --'' and inserting ``except
as provided in paragraph (4); and'';
(2) by striking subparagraphs (A) and (B);
(3) in subparagraph (C)--
(A) in clause (ii), by redesignating
subclauses (I) and (II) as items (aa) and (bb),
respectively;
(B) by redesignating clauses (i) through
(iii) as subclauses (I) through (III),
respectively; and
(C) by striking ``(C) in the case of a
property that--'' and inserting the following:
``(B) The limitations under clauses (i) and (ii) of
subparagraph (A) shall not apply in the case of--
``(i) a property identified under section
1307(g); or
``(ii) a property that--'';
(4) by striking ``under this title for any property''
and inserting the following: ``under this title--
``(i) for any property'';
(5) by inserting ``(A) subject to subparagraph (B),''
after the paragraph designation; and
(6) by inserting before subparagraph (B), as so
redesignated by the amendment made by paragraph (3)(C)
of this section, the following new clause:
``(ii) for any residential property having 4
or fewer residences and for which there is
elevation data meeting standards of the
Administrator, may not exceed $10,000 in any
single year, except that such amount (as it may
have been previously adjusted) shall be
adjusted for inflation by the Administrator
upon the expiration of the 5-year period
beginning upon the date of the enactment of the
21st Century Flood Reform Act and upon the
expiration of each successive 5-year period
thereafter, in accordance with an inflationary
index selected by the Administrator.''.
SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.
(a) Mitigation Strategies.--Paragraph (1) of section 1361(d)
of the National Flood Insurance Act of 1968 (42 U.S.C.
4102(d)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' at the
end;
(2) in subparagraph (B), by striking ``and'' at the
end; and
(3) by inserting after subparagraph (B) the following
new subparagraphs:
``(C) with respect to buildings in dense
urban environments, methods that can be
deployed on a block or neighborhood scale; and
``(D) elevation of mechanical systems; and''.
(b) Mitigation Credit.--Subsection (k) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is
amended--
(1) by striking ``shall take into account'' and
inserting the following: ``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated by the
amendment made by paragraph (1) of this subsection, by
striking the period at the end and inserting ``; and'';
and
(3) by adding at the end the following new paragraph:
``(2) offer a reduction of the risk premium rate
charged to a policyholder, as determined by the
Administrator, if the policyholder implements any
mitigation method described in paragraph (1).''.
SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN COOPERATIVE
HOUSING.
The Administrator of the Federal Emergency Management Agency
shall conduct a study to analyze and determine the feasibility
of providing flood insurance coverage under the National Flood
Insurance Program under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.) for individual dwelling units in
cooperative housing projects. Not later than the expiration of
the 24-month period beginning on the date of the enactment of
this Act, the Administrator shall submit a report to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate regarding the findings and conclusions of the study
conducted pursuant to this section, which shall include a plan
setting forth specific actions to implement the development of
such flood insurance coverage.
SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING CONDITIONS.
Section 1311 of the National Flood Insurance Act of 1968 (42
U.S.C. 4018) is amended by adding at the end the following new
subsection:
``(c) Pilot Program for Investigation of Preexisting
Structural Conditions.--
``(1) Voluntary program.--The Administrator shall
carry out a pilot program under this subsection to
provide for companies participating in the Write Your
Own program (as such term is defined in section 1370(a)
(42 U.S.C. 4121(a))) to investigate preexisting
structural conditions of insured properties and
potentially insured properties that could result in the
denial of a claim under a policy for flood insurance
coverage under this title in the event of a flood loss
to such property. Participation in the pilot program
shall be voluntary on the part of Write Your Own
companies.
``(2) Investigation of properties.--Under the pilot
program under this subsection, a Write Your Own company
participating in the program shall--
``(A) provide in policies for flood insurance
coverage under this title covered by the
program that, upon the request of the
policyholder, the company shall provide for--
``(i) an investigation of the
property covered by such policy, using
common methods, to determine whether
preexisting structural conditions are
present that could result in the denial
of a claim under such policy for flood
losses; and
``(ii) if such investigation is not
determinative, an on-site inspection of
the property to determine whether such
preexisting structural conditions are
present;
``(B) upon completion of an investigation or
inspection pursuant to subparagraph (A) that
determines that such a preexisting structural
condition is present or absent, submit a report
to the policyholder and Administrator
describing the condition; and
``(C) impose a surcharge on each policy
described in subparagraph (A) in such amount
that the Administrator determines is
appropriate to cover the costs of
investigations and inspections performed
pursuant to such policies and reimburse Write
Your Own companies participating in the program
under this subsection for such costs.
``(3) Interim report.--Not later than December 31,
2021, the Administrator shall submit a report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate describing the
operation of the pilot program to that date.
``(4) Sunset.--The Administrator may not provide any
policy for flood insurance described in paragraph
(2)(A) after December 31, 2022.
``(5) Final report.--Not later than March 31, 2023,
the Administrator shall submit a final report regarding
the pilot program under this section to the Committee
on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban
Affairs of the Senate. The report shall include any
findings and recommendations of the Administrator
regarding the pilot program.''.
SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.
(a) Establishment.--There is established an advisory
committee to be known as the Federal Flood Insurance Advisory
Committee (in this section referred to as the ``Committee'').
(b) Membership.--
(1) Members.--The Committee shall consist of--
(A) the Administrator of the Federal
Emergency Management Agency (in this section
referred to as the ``Administrator''), or the
designee thereof;
(B) the Secretary of the Treasury, or the
designee thereof; and
(C) additional members appointed by the
Administrator or the designee of the
Administrator, who shall be--
(i) two representatives of the
property and casualty insurance sector;
(ii) one individual who served in the
past, or is currently serving, as an
insurance regulator of a State, the
District of Columbia, the Commonwealth
of Puerto Rico, Guam, the Commonwealth
of the Northern Mariana Islands, the
Virgin Islands, American Samoa, or any
federally-recognized Indian tribe;
(iii) one representative of the
financial or insurance sectors who is
involved in risk transfers, including
reinsurance, resilience bonds, and
other insurance-linked securities;
(iv) one actuary with demonstrated
high-level knowledge of catastrophic
risk insurance;
(v) two insurance professionals with
demonstrated experience with the sale
of flood insurance under the National
Flood Insurance Program;
(vi) two representatives of
catastrophic risk insurance programs;
(vii) one insurance claims
specialist;
(viii) one representative of a
recognized consumer advocacy
organization;
(ix) one individual having
demonstrated expertise in the
challenges in insuring low-income
communities;
(x) one representative from an
academic institution who has
demonstrated expertise in insurance;
and
(xi) such other recognized experts in
the field of insurance as the
Administrator considers necessary.
(2) Qualifications.--In appointing members under
paragraph (1)(C), the Administrator shall, to the
maximum extent practicable, ensure the membership of
the Committee has a balance of members reflecting
geographic diversity, including representation from
areas inland or with coastline identified by the
Administrator as at high risk for flooding or as areas
having special flood hazards.
(c) Duties.--The Committee shall review, and make
recommendations to the Administrator, upon request, on matters
related to the insurance aspects of the National Flood
Insurance Program, including ratemaking, technology to
administer insurance, risk assessment, actuarial practices,
claims practices, sales and insurance delivery, compensation
and allowances, generally and based on the complexities of the
program, and best insurance practices.
(d) Chairperson.--The members of the Committee shall elect
one member to serve as the chairperson of the Committee (in
this section referred to as the ``Chairperson'').
(e) Compensation.--Members of the Committee shall receive no
additional compensation by reason of their service on the
Committee.
(f) Meetings and Actions.--
(1) In general.--The Committee shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of its members, and may take
action by a vote of the majority of the members in
accordance with the Committee's charter.
(2) Initial meeting.--The Administrator, or a person
designated by the Administrator, shall request and
coordinate the initial meeting of the Committee.
(g) Staff of FEMA.--Upon the request of the Chairperson, the
Administrator may detail, on a nonreimbursable basis, personnel
of the Federal Emergency Management Agency to assist the
Committee in carrying out its duties.
(h) Powers.--In carrying out this section, the Committee may
hold hearings, receive evidence and assistance, provide
information, and conduct research, as it considers appropriate.
(i) Reports to Congress.--The Administrator, on an annual
basis, shall report to the Committee on Financial Services of
the House of Representatives, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Office of
Management and Budget on--
(1) the recommendations made by the Committee;
(2) actions taken by the Federal Emergency Management
Agency to address such recommendations to improve the
insurance aspects of the national flood insurance
program; and
(3) any recommendations made by the Committee that
have been deferred or not acted upon, together with an
explanatory statement.
SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE.
The Federal entities for lending regulation (as such term is
defined in section 3(a) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4003(a))), in consultation with the
Administrator of the Federal Emergency Management Agency, shall
update and reissue the document entitled ``Interagency
Questions and Answers Regarding Flood Insurance'' not later
than the expiration of the 12-month period beginning on the
date of the enactment of this Act and not less frequently than
biennially thereafter.
SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.
The Comptroller General of the United States shall conduct a
study of the policies and practices for adjustment of claims
for losses under flood insurance coverage made available under
the National Flood Insurance Act, which shall include--
(1) a comparison of such policies and practices with
the policies and practices for adjustment of claims for
losses under other insurance coverage;
(2) an assessment of the quality of the adjustments
conducted and the effects of such policies and
practices on such quality;
(3) identification of any incentives under such
policies and practices that affect the speed with which
such adjustments are conducted; and
(4) identification of the affects of such policies
and practices on insureds submitting such claims for
losses.
SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF EARTH
MOVEMENT.
The Comptroller General of the United States shall conduct a
study of the treatment, under flood insurance coverage made
available under the National Flood Insurance Act, of earth
movement and subsidence, including earth movement and
subsidence caused by flooding, which shall include--
(1) identification and analysis of the effects of
such treatment on the National Flood Insurance Program
and insureds under the program;
(2) an assessment of the availability and
affordability of coverage in the private insurance
market for earth movement and subsidence caused by
flooding;
(3) an assessment of the effects on the National
Flood Insurance Program of covering earth movement and
subsidence caused by flooding; and
(4) a projection of the increased premiums that would
be required to make coverage for earth movement losses
actuarially sound and not fiscally detrimental to the
continuation of the National Flood Insurance Program.
SEC. 120. DEFINITIONS.
(a) National Flood Insurance Act of 1968.--Subsection (a) of
section 1370 of the National Flood Insurance Act of 1968 (42
U.S.C. 4121(a)) is amended--
(1) in paragraph (14), by striking ``and'' at the
end;
(2) in paragraph (15), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following new
paragraphs:
``(16) the term `Write Your Own Program' means the
program under which the Federal Emergency Management
Agency enters into a standard arrangement with private
property insurance companies to sell contracts for
flood insurance coverage under this title under their
own business lines of insurance, and to adjust and pay
claims arising under such contracts; and
``(17) the term `Write Your Own company' means a
private property insurance company that participates in
the Write Your Own Program.''.
(b) Biggert-Waters Flood Insurance Reform Act of 2012.--
Subsection (a) of section 100202 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4004(a)) is amended by
striking paragraph (5) and inserting the following new
paragraph:
``(5) Write your own.--The terms `Write Your Own
Program' and `Write Your Own company' have the meanings
given such terms in section 1370(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121(a)).''.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT
SEC. 201. PRIVATE FLOOD INSURANCE.
(a) Mandatory Purchase Requirement.--
(1) Amount and term of coverage.--Section 102 of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a)
is amended by striking ``Sec. 102. (a)'' and all that
follows through the end of subsection (a) and inserting
the following:
``Sec. 102. (a) Amount and Term of Coverage.--After the
expiration of sixty days following the date of the enactment of
this Act, no Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes
for use in any area that has been identified by the
Administrator as an area having special flood hazards and in
which the sale of flood insurance has been made available under
the National Flood Insurance Act of 1968, unless the building
or mobile home and any personal property to which such
financial assistance relates is covered by flood insurance:
Provided, That the amount of flood insurance (1) in the case of
Federal flood insurance, is at least equal to the development
or project cost of the building, mobile home, or personal
property (less estimated land cost), the outstanding principal
balance of the loan, or the maximum limit of Federal flood
insurance coverage made available with respect to the
particular type of property, whichever is less; or (2) in the
case of private flood insurance, is at least equal to the
development or project cost of the building, mobile home, or
personal property (less estimated land cost), the outstanding
principal balance of the loan, or the maximum limit of Federal
flood insurance coverage made available with respect to the
particular type of property, whichever is less: Provided
further, That if the financial assistance provided is in the
form of a loan or an insurance or guaranty of a loan, the
amount of flood insurance required need not exceed the
outstanding principal balance of the loan and need not be
required beyond the term of the loan. The requirement of
maintaining flood insurance shall apply during the life of the
property, regardless of transfer of ownership of such
property.''.
(2) Requirement for mortgage loans.--Subsection (b)
of section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(b)) is amended--
(A) by striking paragraph (7);
(B) by redesignating paragraph (6) as
paragraph (7);
(C) by striking the subsection designation
and all that follows through the end of
paragraph (5) and inserting the following:
``(b) Requirement for Mortgage Loans.--
``(1) Regulated lending institutions.--Each Federal
entity for lending regulation (after consultation and
coordination with the Financial Institutions
Examination Council established under the Federal
Financial Institutions Examination Council Act of 1974)
shall by regulation direct regulated lending
institutions not to make, increase, extend, or renew
any loan secured by improved real estate or a mobile
home located or to be located in an area that has been
identified by the Administrator as an area having
special flood hazards and in which flood insurance has
been made available under the National Flood Insurance
Act of 1968, unless the building or mobile home and any
personal property securing such loan is covered for the
term of the loan by flood insurance: Provided, That the
amount of flood insurance (A) in the case of Federal
flood insurance, is at least equal to the outstanding
principal balance of the loan or the maximum limit of
Federal flood insurance coverage made available with
respect to the particular type of property, whichever
is less; or (B) in the case of private flood insurance,
is at least equal to the outstanding principal balance
of the loan or the maximum limit of Federal flood
insurance coverage made available with respect to the
particular type of property, whichever is less.
``(2) Federal agency lenders and mortgage insurance
and guarantee agencies.--
``(A) Federal agency lenders.--A Federal
agency lender may not make, increase, extend,
or renew any loan secured by improved real
estate or a mobile home located or to be
located in an area that has been identified by
the Administrator as an area having special
flood hazards and in which flood insurance has
been made available under the National Flood
Insurance Act of 1968, unless the building or
mobile home and any personal property securing
such loan is covered for the term of the loan
by flood insurance in accordance with paragraph
(1). Each Federal agency lender may issue any
regulations necessary to carry out this
paragraph. Such regulations shall be consistent
with and substantially identical to the
regulations issued under paragraph (1).
``(B) Other federal mortgage entities.--
``(i) Coverage requirements.--Each
covered Federal mortgage entity shall
implement procedures reasonably
designed to ensure that, for any loan
that--
``(I) is secured by improved
real estate or a mobile home
located in an area that has
been identified, at the time of
the origination of the loan or
at any time during the term of
the loan, by the Administrator
as an area having special flood
hazards and in which flood
insurance is available under
the National Flood Insurance
Act of 1968, and
``(II) is made, insured,
held, or guaranteed by such
entity, or backs or on which is
based any trust certificate or
other security for which such
entity guarantees the timely
payment of principal and
interest,
the building or mobile home and any
personal property securing the loan is
covered for the term of the loan by
flood insurance in the amount provided
in paragraph (1).
``(ii) Definition.--For purposes of
this subparagraph, the term `covered
Federal mortgage entity' means--
``(I) the Secretary of
Housing and Urban Development,
with respect to mortgages
insured under the National
Housing Act;
``(II) the Secretary of
Agriculture, with respect to
loans made, insured, or
guaranteed under title V of the
Housing Act of 1949; and
``(III) the Government
National Mortgage Association.
``(C) Requirement to accept flood
insurance.--Each Federal agency lender and each
covered Federal mortgage entity shall accept
flood insurance as satisfaction of the flood
insurance coverage requirement under
subparagraph (A) or (B), respectively, if the
flood insurance coverage meets the requirements
for coverage under such subparagraph and the
requirements relating to financial strength
issued pursuant to paragraph (4).
``(3) Government-sponsored enterprises for housing.--
The Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation shall implement
procedures reasonably designed to ensure that, for any
loan that is--
``(A) secured by improved real estate or a
mobile home located in an area that has been
identified, at the time of the origination of
the loan or at any time during the term of the
loan, by the Administrator as an area having
special flood hazards and in which flood
insurance is available under the National Flood
Insurance Act of 1968, and
``(B) purchased or guaranteed by such entity,
the building or mobile home and any personal property
securing the loan is covered for the term of the loan
by flood insurance in the amount provided in paragraph
(1). The Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation shall accept
flood insurance as satisfaction of the flood insurance
coverage requirement under paragraph (1) if the flood
insurance coverage provided meets the requirements for
coverage under that paragraph and the requirements
relating to financial strength issued pursuant to
paragraph (4).
``(4) Requirements regarding financial strength.--The
Director of the Federal Housing Finance Agency, in
consultation with the Federal National Mortgage
Association, the Federal Home Loan Mortgage
Corporation, the Secretary of Housing and Urban
Development, the Government National Mortgage
Association, and the Secretary of Agriculture shall
develop and implement requirements relating to the
financial strength of private insurance companies from
which such entities and agencies will accept private
flood insurance, provided that such requirements shall
not affect or conflict with any State law, regulation,
or procedure concerning the regulation of the business
of insurance.
``(5) Applicability.--
``(A) Existing coverage.--Except as provided
in subparagraph (B), paragraph (1) shall apply
on the date of enactment of the Riegle
Community Development and Regulatory
Improvement Act of 1994.
``(B) New coverage.--Paragraphs (2) and (3)
shall apply only with respect to any loan made,
increased, extended, or renewed after the
expiration of the 1-year period beginning on
the date of enactment of the Riegle Community
Development and Regulatory Improvement Act of
1994. Paragraph (1) shall apply with respect to
any loan made, increased, extended, or renewed
by any lender supervised by the Farm Credit
Administration only after the expiration of the
period under this subparagraph.
``(C) Continued effect of regulations.--
Notwithstanding any other provision of this
subsection, the regulations to carry out
paragraph (1), as in effect immediately before
the date of enactment of the Riegle Community
Development and Regulatory Improvement Act of
1994, shall continue to apply until the
regulations issued to carry out paragraph (1)
as amended by section 522(a) of such Act take
effect.
``(6) Rule of construction.--Except as otherwise
specified, any reference to flood insurance in this
section shall be considered to include Federal flood
insurance and private flood insurance. Nothing in this
subsection shall be construed to supersede or limit the
authority of a Federal entity for lending regulation,
the Federal Housing Finance Agency, a Federal agency
lender, a covered Federal mortgage entity (as such term
is defined in paragraph (2)(B)(ii)), the Federal
National Mortgage Association, or the Federal Home Loan
Mortgage Corporation to establish requirements relating
to the financial strength of private insurance
companies from which the entity or agency will accept
private flood insurance, provided that such
requirements shall not affect or conflict with any
State law, regulation, or procedure concerning the
regulation of the business of insurance.''; and
(D) by adding at the end the following new
paragraphs:
``(8) Definitions.--In this section:
``(A) Flood insurance.--The term `flood
insurance' means--
``(i) Federal flood insurance; and
``(ii) private flood insurance.
``(B) Federal flood insurance.--The term
`Federal flood insurance' means an insurance
policy made available under the National Flood
Insurance Act of 1968 (42 U.S.C. 4001 et seq.).
``(C) Mutual aid society.--The term `mutual
aid society' means an organization--
``(i) the members of which--
``(I) share a common set of
ethical or religious beliefs;
and
``(II) in accordance with the
beliefs described in subclause
(I), agree to cover expenses
arising from damage to property
of the members of the
organization, including damage
caused by flooding; and
``(ii) that has a demonstrated
history of fulfilling the terms of
agreements to cover expenses arising
from damage to property of the members
of the organization caused by flooding.
``(D) Private flood insurance.--The term
`private flood insurance' means--
``(i) an insurance policy that--
``(I) is issued by an
insurance company that is--
``(aa) licensed,
admitted, or otherwise
approved to engage in
the business of
insurance in the State
in which the insured
building is located, by
the insurance regulator
of that State; or
``(bb) eligible as a
nonadmitted insurer to
provide insurance in
the home State of the
insured, in accordance
with sections 521
through 527 of the
Dodd-Frank Wall Street
Reform and Consumer
Protection Act (15
U.S.C. 8201 through
8206);
``(II) is issued by an
insurance company that is not
otherwise disapproved as a
surplus lines insurer by the
insurance regulator of the
State in which the property to
be insured is located; and
``(III) provides flood
insurance coverage that
complies with the laws and
regulations of that State; or
``(ii) an agreement with a mutual aid
society for such society to cover
expenses arising from damage to
property of the members of such society
caused by flooding, unless the State in
which the property to be insured is
located has--
``(I) determined that the
specific mutual aid society may
not provide such coverage or
provide such coverage in such
manner; or
``(II) specifically provided
through law or regulation that
mutual aid societies may not
provide such coverage or
provide such coverage in such
manner.
``(E) State.--The term `State' means any
State of the United States, the District of
Columbia, the Commonwealth of Puerto Rico,
Guam, the Northern Mariana Islands, the Virgin
Islands, and American Samoa.''.
(b) Effect of Private Flood Insurance Coverage on Continuous
Coverage Requirements.--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:
``(o) Effect of Private Flood Insurance Coverage on
Continuous Coverage Requirements.--For purposes of applying any
statutory, regulatory, or administrative continuous coverage
requirement, including under section 1307(g)(1), the
Administrator shall consider any period during which a property
was continuously covered by private flood insurance (as defined
in section 102(b)(8) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(b)(8))) to be a period of continuous
coverage.''.
SEC. 202. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR COMMERCIAL
PROPERTIES.
(a) Amendments to Flood Disaster Protection Act of 1973.--The
Flood Disaster Protection Act of 1973, as amended by the
preceding provisions of this Act, is further amended--
(1) in section 3(a) (42 U.S.C. 4003(a))--
(A) in paragraph (10), by striking ``and'' at
the end;
(B) in paragraph (11), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(12) `residential improved real estate' means
improved real estate that--
``(A) is primarily used for residential
purposes, as defined by the Federal entities
for lending regulation; and
``(B) secures financing or financial
assistance provided through a federally related
single family loan program, as defined by the
Federal entities for lending regulation.''; and
(2) in section 102 (42 U.S.C. 4012a)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) by inserting
``residential'' before
``improved real estate''; and
(II) by inserting
``residential'' before
``building or mobile home'';
(ii) in paragraph (2)--
(I) by inserting
``residential'' before
``improved real estate'' each
place such term appears; and
(II) by inserting
``residential'' before
``building or mobile home''
each place such term appears;
and
(iii) in paragraph (3)--
(I) in subparagraph (A), by
inserting ``residential''
before ``improved real
estate''; and
(II) in the matter after and
below subparagraph (B), by
inserting ``residential''
before ``building or mobile
home'';
(B) in subsection (c)(3), by striking ``, in
the case of any residential property, for any
structure that is a part of such property'' and
inserting ``for any structure that is a part of
a residential property'';
(C) in subsection (e)--
(i) in paragraph (1)--
(I) by inserting
``residential'' before
``improved real estate''; and
(II) by inserting
``residential'' before
``building or mobile home''
each place such term appears;
and
(ii) in paragraph (5)--
(I) in subparagraph (A)--
(aa) by inserting
``residential'' before
``improved real
estate'' each place
such term appears; and
(bb) by inserting
``residential'' before
``building or mobile
home'' each place such
term appears;
(II) in subparagraph (B), by
inserting ``residential''
before ``building or mobile
home'' each place such term
appears; and
(III) in subparagraph (C), by
inserting ``residential''
before ``building or mobile
home''; and
(D) in subsection (h)--
(i) by inserting ``residential''
before ``improved real estate'' each
place such term appears; and
(ii) in the matter preceding
paragraph (1), by inserting
``residential'' before ``building or
mobile home''.
(b) Amendments to National Flood Insurance Act of 1968.--The
National Flood Insurance Act of 1968, as amended by the
preceding provisions of this Act, is further amended--
(1) in section 1364(a) (42 U.S.C. 4104a(a))--
(A) in paragraph (1), by inserting
``residential'' before ``improved real
estate'';
(B) in paragraph (2), by inserting
``residential'' before ``improved real
estate''; and
(C) in paragraph (3)(A), by inserting
``residential'' before ``building'';
(2) in section 1365 (42 U.S.C. 4104b)--
(A) in subsection (a)--
(i) by inserting ``residential''
before ``improved real estate''; and
(ii) by inserting ``residential''
before ``building'';
(B) in subsection (b)(2)--
(i) by inserting ``residential''
before ``building'' each place such
term appears; and
(ii) by inserting ``residential''
before ``improved real estate'' each
place such term appears;
(C) in subsection (d), by inserting
``residential'' before ``improved real estate''
each place such term appears; and
(D) in subsection (e)--
(i) by inserting ``residential''
before ``improved real estate''; and
(ii) by inserting ``residential''
before ``building'' each place such
term appears; and
(3) in section 1370 (42 U.S.C. 4121)--
(A) in paragraph (8), by inserting
``residential'' before ``improved real
estate'';
(B) by redesignating paragraphs (14) through
(17) as paragraphs (15) through (18),
respectively; and
(C) by inserting after paragraph (13) the
following new paragraph:
``(14) the term `residential improved real estate'
means improved real estate that--
``(A) is primarily used for residential
purposes, as defined by the Federal entities
for lending regulation; and
``(B) secures financing or financial
assistance provided through a federally related
single family loan program, as defined by the
Federal entities for lending regulation;''.
(c) Rule of Construction.--This section and the amendments
made by this section may not be construed to prohibit the
Administrator of the Federal Emergency Management Agency from
offering flood insurance coverage under the National Flood
Insurance Program for eligible non-residential properties,
other residential multifamily properties, or structures
financed with commercial loans, or to prohibit the purchase of
such coverage for such eligible properties.
SEC. 203. ELIMINATION OF NON-COMPETE REQUIREMENT.
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:
``(f) Authority To Provide Other Flood Coverage.--
``(1) In general.--The Administrator may not, as a
condition of participating in the Write Your Own
Program (as such term is defined in section 1370(a)) or
in otherwise participating in the utilization by the
Administrator of the facilities and services of
insurance companies, insurers, insurance agents and
brokers, and insurance adjustment organizations
pursuant to the authority in this section, nor as a
condition of eligibility to engage in any other
activities under the National Flood Insurance Program
under this title, restrict any such company, insurer,
agent, broker, or organization from offering and
selling private flood insurance (as such term is
defined in section 102(b)(9) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).
``(2) Financial assistance/subsidy arrangement.--
After the date of the enactment of this subsection--
``(A) the Administrator may not include in
any agreement entered into with any insurer for
participation in the Write Your Own Program any
provision establishing a condition prohibited
by paragraph (1), including the provisions of
Article XIII of the Federal Emergency
Management Agency, Federal Insurance
Administration, Financial Assistance/Subsidy
Arrangement, as adopted pursuant to section
62.23(a) of title 44 of the Code of Federal
Regulations; and
``(B) any such provision in any such
agreement entered into before such date of
enactment shall not have any force or effect,
and the Administrator may not take any action
to enforce such provision.''.
SEC. 204. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end
the following new section:
``SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.
``(a) Flood Risk Information.--
``(1) In general.--Except as provided in paragraph
(2), to facilitate the National Flood Insurance Program
becoming a source of information and data for research
and development of technology that better understands
flooding, the risk of flooding, and the predictability
of perils of flooding, the Administrator shall make
publicly available all data, models, assessments,
analytical tools, and other information in the
possession of the Administrator relating to the
National Flood Insurance Program under this title that
is used in assessing flood risk or identifying and
establishing flood elevations and premiums, including--
``(A) data relating to risk on individual
properties and loss ratio information and other
information identifying losses under the
program;
``(B) current and historical policy
information, limited to the amount and term
only, for properties currently covered by flood
insurance and for properties that are no longer
covered by flood insurance;
``(C) current and historical claims
information, limited to the date and amount
paid only, for properties currently covered by
flood insurance and for properties that are no
longer covered by flood insurance;
``(D) identification of whether a property
was constructed before or after the effective
date of the first flood insurance rate map for
a community;
``(E) identification of properties that have
been mitigated through elevation, a buyout, or
any other mitigation action; and
``(F) identification of unmitigated multiple-
loss properties.
``(2) Open source data system.--In carrying out
paragraph (1), the Administrator shall establish an
open source data system by which all information
required to be made publicly available by such
subsection may be accessed by the public on an
immediate basis by electronic means.
``(b) Community Information.--Not later than the expiration
of the 12-month period beginning upon the date of the enactment
of this section, the Administrator shall establish and maintain
a publicly searchable database that provides information about
each community participating in the National Flood Insurance
Program, which shall include the following information:
``(1) The status of the community's compliance with
the National Flood Insurance Program, including any
findings of noncompliance, the status of any
enforcement actions initiated by a State or by the
Administrator, and the number of days of any such
continuing noncompliance.
``(2) The number of properties located in the
community's special flood hazard areas that were built
before the effective date of the first flood insurance
rate map for the community.
``(3) The number of properties located in the
community's special flood hazard areas that were built
after the effective date of the first flood insurance
rate map for the community.
``(4) The total number of current and historical
claims located outside the community's special flood
hazard areas.
``(5) The total number of multiple-loss properties in
the community.
``(6) The portion of the community, stated as a
percentage and in terms of square miles, that is
located within special flood hazard areas.
``(c) Identification of Properties.--The information provided
pursuant to subsections (a) and (b) shall be based on data that
identifies properties at the zip code or census block level,
and shall include the name of the community and State in which
a property is located.
``(d) Protection of Personally Identifiable Information.--The
information provided pursuant to subsections (a) and (b) shall
be disclosed in a format that does not reveal individually
identifiable information about property owners in accordance
with the section 552a of title 5, United States Code.
``(e) Definition of Loss Ratio.--For purposes of this
section, the term `loss ratio' means, with respect to the
National Flood Insurance Program, the ratio of the amount of
claims paid under the Program to the amount of premiums paid
under the Program.''.
SEC. 205. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY BECAUSE OF
REPLACEMENT WITH PRIVATE FLOOD INSURANCE.
Section 1306 of the National Flood Insurance Act of 1968 (42
U.S.C. 4013) is amended by adding at the end the following new
subsection:
``(e) Refund of Unearned Premiums for Policies Canceled
Because of Replacement With Private Flood Insurance.--
``(1) Required refund.--Subject to subsection (c), if
at any time an insured under a policy for flood
insurance coverage for a property that is made
available under this title cancels such policy because
other duplicate flood insurance coverage for the same
property has been obtained from a source other than the
National Flood Insurance Program under this title, the
Administrator shall refund to the former insured a
portion of the premiums paid for the coverage made
available under this title, as determined consistent
with industry practice according to the portion of the
term of the policy that such coverage was in effect,
but only if a copy of declarations page of the new
policy obtained from a source other than the program
under this title is provided to the Administrator.
``(2) Effective date of cancellation.--For purposes
of this subsection, a cancellation of a policy for
coverage made available under the national flood
insurance program under this title, for the reason
specified in paragraph (1), shall be effective--
``(A) on the effective date of the new policy
obtained from a source other than the program
under this title, if the request for such
cancellation was received by the Administrator
before the expiration of the 6-month period
beginning on the effective date of the new
policy; or
``(B) on the date of the receipt by the
Administrator of the request for cancellation,
if the request for such cancellation was
received by the Administrator after the
expiration of the 6-month period beginning on
the effective date of the new policy.
``(3) Prohibition of refunds for properties receiving
increased cost of compliance claims.--No premium
amounts paid for coverage made available under this
title may be refunded pursuant to this subsection--
``(A) with respect to coverage for any
property for which measures have been
implemented using amounts received pursuant to
a claim under increased cost of compliance
coverage made available pursuant to section
1304(b); or
``(B) if a claim has been paid or is pending
under the policy term for which the refund is
sought.''.
SEC. 206. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.
(a) In General.--The Comptroller General of the United States
shall conduct a study to analyze the feasibility and
effectiveness, and problems involved, in reducing flood
insurance premiums and eliminating the need for purchase of
flood insurance coverage by authorizing owners of residential
properties to establish flood damage savings accounts described
in subsection (b) in lieu of complying with the mandatory
requirements under section 102 of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a) to purchase flood insurance for
such properties.
(b) Flood Damage Savings Account.--A flood damage savings
account described in this subsection is a savings account--
(1) that would be established by an owner of
residential property with respect to such property in
accordance with requirements established by the
Administrator of the Federal Emergency Management
Agency; and
(2) the proceeds of which would be available for use
only to cover losses to such properties resulting from
flooding, pursuant to adjustment of a claim for such
losses in the same manner and according to the same
procedures as apply to claims for losses under flood
insurance coverage made available under the National
Flood Insurance Act of 1968.
(c) Issues.--Such study shall include an analysis of, and
recommendation regarding, each of the following issues:
(1) Whether authorizing the establishment of such
flood damage savings accounts would be effective and
efficient in reducing flood insurance premiums,
eliminating the need for purchase of flood insurance
coverage made available under the National Flood
Insurance Program, and reducing risks to the financial
safety and soundness of the National Flood Insurance
Fund.
(2) Possible options for structuring such flood
damage savings accounts, including--
(A) what types of institutions could hold
such accounts and the benefits and problems
with each such type of institution;
(B) considerations affecting the amounts
required to be held in such accounts; and
(C) options regarding considerations the
conditions under which such an account may be
terminated.
(3) The feasibility and effectiveness, and problems
involved in, authorizing the Administrator of the
Federal Emergency Management Agency to make secondary
flood insurance coverage available under the National
Flood Insurance Program to cover the portion of flood
losses or damages to properties for which such flood
damage savings accounts have been established that
exceed the amounts held in such accounts.
(4) The benefits and problems involved in authorizing
the establishment of such accounts for non-residential
properties.
(d) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Committee on
Financial Services of the House of Representatives, the
Committee on Banking, Housing, and Urban Affairs of the Senate,
and the Administrator that sets forth the analysis,
conclusions, and recommendations resulting from the study under
this section. Such report shall identify elements that should
be taken into consideration by the Administrator in designing
and carrying out the demonstration program under section 207.
SEC. 207. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS ACCOUNTS.
(a) Plan.--If the Comptroller General of the United States
concludes in the report required under section 206 that a
demonstration program under this section is feasible and should
be considered, then the Administrator of the Federal Emergency
Management Agency shall, not later than the expiration of the
12-month period beginning upon the submission of the report
under section 206(d), submit to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a plan and
guidelines for a demonstration program, to be carried out by
the Administrator, to demonstrate the feasibility and
effectiveness of authorizing the establishment of flood damage
savings accounts, taking into consideration the analysis,
conclusions, and recommendations included in such report.
(b) Authority.--The Administrator of the Federal Emergency
Management Agency shall carry out a program to demonstrate the
feasibility and effectiveness of authorizing the establishment
of flood damage savings accounts in the manner provided in plan
and guidelines for the demonstration program submitted pursuant
to subsection (a).
(c) Scope.--The demonstration program under this section
shall provide for the establishment of flood damage savings
accounts with respect to not more than 5 percent of the
residential properties that have 4 or fewer residences and that
are covered by flood insurance coverage made available under
the National Flood Insurance Program.
(d) Timing.--The Administrator shall commence the
demonstration program under this section not later than the
expiration of the 12-month period beginning upon the submission
of the plan and guidelines for the demonstration pursuant to
subsection (a).
(e) Geographical Diversity.--The Administrator shall ensure
that properties for which flood damage savings accounts are
established under the demonstration are located in diverse
geographical areas throughout the United States.
(f) Report.--Upon the expiration of the 2-year period
beginning upon the date of the commencement of the
demonstration program under this section, the Administrator
shall submit a report to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate describing and
assessing the demonstration, and setting forth conclusions and
recommendations regarding continuing and expanding the
demonstration.
(g) Feasibility.--The Administrator shall implement this
section only after determining that implementation is supported
by the Comptroller's conclusions and recommendations contained
in the report required under section 206.
TITLE III--MAPPING FAIRNESS
SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING PREMIUM
RATES.
(a) Estimates of Premium Rates.--Subparagraph (A) of section
1307(a)(1) of the National Flood Insurance Act of 1968 (42
U.S.C. 4014(a)(1)(A)), as amended by the preceding provisions
of this Act, is further amended--
(1) in clause (ii), by striking ``and'' at the end;
and
(2) by adding at the end the following new clause:
``(iv) both the risk identified by
the applicable flood insurance rate
maps and by other risk assessment data
and tools, including risk assessment
models and scores from appropriate
sources; and''.
(b) Establishment of Chargeable Premium Rates.--Paragraph (1)
of section 1308(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(b)(1)) is amended by inserting before the
semicolon at the end the following: ``, taking into account
both the risk identified by the applicable flood insurance rate
maps and by other risk assessment data and tools, including
risk assessment models and scores from appropriate sources''.
(c) Effective Date and Regulations.--
(1) Effective date.--The amendments made by
subsections (a) and (b) shall be made, and shall take
effect, upon the expiration of the 36-month period
beginning on the date of the enactment of this Act.
(2) Regulations.--The Administrator of the Federal
Emergency Management Agency shall issue regulations
necessary to implement the amendments made by
subsections (a) and (b), which shall identify risk
assessment data and tools to be used in identifying
flood risk and appropriate sources for risk assessment
models and scores to be so used. Such regulations shall
be issued not later than the expiration of the 36-month
period beginning on the date of the enactment of this
Act and shall take effect upon the expiration of such
period.
SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.
(a) In General.--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) Appeals of Existing Maps.--
``(1) Right to appeal.--Subject to paragraph (6), a
State or local government, or the owner or lessee of
real property, who has made a formal request to the
Administrator to update a flood map that the
Administrator has denied may at any time appeal such a
denial as provided in this subsection.
``(2) Basis for appeal.--The basis for appeal under
this subsection shall be the possession of knowledge or
information that--
``(A) the base flood elevation level or
designation of any aspect of a flood map is
scientifically or technically inaccurate; or
``(B) factors exist that mitigate the risk of
flooding, including ditches, banks, walls,
vegetation, levees, lakes, dams, reservoirs,
basin, retention ponds, and other natural or
manmade topographical features.
``(3) Appeals process.--
``(A) Administrative adjudication.--An appeal
under this subsection shall be determined by a
final adjudication on the record, and after
opportunity for an administrative hearing.
``(B) Rights upon adverse decision.--If an
appeal pursuant to subparagraph (A) does not
result in a decision in favor of the State,
local government, owner, or lessee, such party
may appeal the adverse decision to the
Scientific Resolution Panel provided for in
section 1363A, which shall recommend a non-
binding decision to the Administrator.
``(4) Relief.--
``(A) Wholly successful appeals.--In the case
of a successful appeal resulting in a
policyholder's property being removed from a
special flood hazard area, such policyholder
may cancel the policy at any time within the
current policy year, and the Administrator
shall provide such policyholder a refund in the
amount of any premiums paid for such policy
year, plus any premiums paid for flood
insurance coverage that the policyholder was
required to purchase or maintain during the 2-
year period preceding such policy year.
``(B) Partially successful appeals.--In the
case of any appeal in which mitigating factors
were determined to have reduced, but not
eliminated, the risk of flooding, the
Administrator shall reduce the amount of flood
insurance coverage required to be maintained
for the property concerned by the ratio of the
successful portion of the appeal as compared to
the entire appeal. The Administrator shall
refund to the policyholder any payments made in
excess of the amount necessary for such new
coverage amount, effective from the time when
the mitigating factor was created or the
beginning of the second policy year preceding
the determination of the appeal, whichever
occurred later.
``(C) Additional relief.--The Administrator
may provide additional refunds in excess of the
amounts specified in subparagraphs (A) and (B)
if the Administrator determines that such
additional amounts are warranted.
``(5) Recovery of costs.--When, incident to any
appeal which is successful in whole or part regarding
the designation of the base flood elevation or any
aspect of the flood map, including elevation or
designation of a special flood hazard area, the
community, or the owner or lessee of real property, as
the case may be, incurs expense in connection with the
appeal, including services provided by surveyors,
engineers, and scientific experts, the Administrator
shall reimburse such individual or community for
reasonable expenses to an extent measured by the ratio
of the successful portion of the appeal as compared to
the entire appeal, but not including legal services, in
the effecting of an appeal based on a scientific or
technical error on the part of the Federal Emergency
Management Agency. No reimbursement shall be made by
the Administrator in respect to any fee or expense
payment, the payment of which was agreed to be
contingent upon the result of the appeal. The
Administrator may use such amounts from the National
Flood Insurance Fund established under section 1310 as
may be necessary to carry out this paragraph.
``(6) Inapplicability to community flood maps.--This
subsection shall not apply with respect to any flood
map that is in effect pursuant to certification under
the standards, guidelines, and procedures established
pursuant to section 100215(m)(1)(B) of the Biggert-
Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4101a(m)(1)(B)).
``(7) Guidance.--The Administrator shall issue
guidance to implement this subsection, which shall not
be subject to the notice and comment requirements under
section 553 of title 5, United States Code.''.
(b) Deadline.--The Administrator of the Federal Emergency
Management Agency shall issue the guidance referred to section
1360(k)(7) of the National Flood Insurance Act of 1968 (42
U.S.C. 4101(k)(7)), as added by the amendment made by
subsection (a) of this section, not later than the expiration
of the 6-month period beginning on the date of the enactment of
this Act.
SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD HAZARD
AREAS.
(a) Appeals.--Section 1363 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104) is amended--
(1) in subsection (b), by striking the second
sentence and inserting the following: ``Any owner or
lessee of real property within the community who
believes the owner's or lessee's rights to be adversely
affected by the Administrator's proposed determination
may appeal such determination to the local government
no later than 90 days after the date of the second
publication.'';
(2) in subsection (d), by striking ``subsection (e)''
and inserting ``subsection (f)'';
(3) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (d) the following
new subsection:
``(e) Determination by Administrator in the Absence of
Appeals.--If the Administrator has not received any appeals,
upon expiration of the 90-day appeal period established under
subsection (b) of this section the Administrator's proposed
determination shall become final. The community shall be given
a reasonable time after the Administrator's final determination
in which to adopt local land use and control measures
consistent with the Administrator's determination.''.
(b) Publication.--Subsection (a) of section 1363 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is
amended by striking ``in the Federal Register''.
(c) Inapplicability to Private and Community Flood Maps.--
Section 1363 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104), as amended by the preceding provisions of this
section, is further amended by adding at the end the following
new subsection:
``(i) Inapplicability to Community Flood Maps.--This section
shall not apply with respect to any flood map that is in effect
pursuant to certification under the standards, guidelines, and
procedures established pursuant to section 100215(m)(1) of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4101a(m)(1)), which shall include procedures for providing
notification and appeal rights to individuals within the
communities of the proposed flood elevation determinations.''.
SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.
Paragraph (1) of section 100216(d) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is
amended--
(1) in subparagraph (B), by inserting ``maximum''
before ``30-day period''; and
(2) in subparagraph (C), by inserting ``maximum''
before ``30-day period''.
SEC. 305. SHARING AND USE OF MAPS AND DATA.
Subsection (b) of section 100216 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and''
at the end;
(B) in subparagraph (C), by striking the
period at the end and inserting ``; and'' ; and
(C) by adding at the end the following new
subparagraph:
``(D) consult and coordinate with the
Department of Defense, the United States
Geological Survey, and the National Oceanic and
Atmospheric Administration for the purpose of
obtaining the most-up-to-date maps and other
information of such agencies, including
information on topography, water flow, and any
other issues, relevant to mapping for flood
insurance purposes.''; and
(2) in paragraph (3)--
(A) in subparagraph (D), by striking ``and''
at the end;
(B) by redesignating subparagraph (E) as
subparagraph (F); and
(C) by inserting after subparagraph (D) the
following new subparagraph:
``(E) any other information relevant to
mapping for flood insurance purposes obtained
pursuant to paragraph (1)(D); and''.
SEC. 306. COMMUNITY FLOOD MAPS.
(a) Technical Mapping Advisory Council.--Section 100215 of
the Biggert-Waters Flood Insurance Reform Act of 2012 (42
U.S.C. 4101a) is amended--
(1) in subsection (c)--
(A) in paragraph (5)(B), by striking ``and''
at the end;
(B) by redesignating paragraph (6) as
paragraph (9); and
(C) by inserting after paragraph (5) the
following new paragraphs:
``(6) recommend to the Administrator methods or
actions to make the flood mapping processes more
efficient;
``(7) recommend to the Administrator methods or
actions to minimize any cost, data, and paperwork
requirements of the flood mapping processes;
``(8) assist communities, and in particular smaller
communities, in locating the resources required to
participate in the development of flood elevations and
flood hazard area designations; and''; and
(2) by adding at the end the following new
subsection:
``(m) Community Flood Maps.--
``(1) Standards and procedures.--In addition to the
other duties of the Council under this section, not
later than the expiration of the 12-month period
beginning on the date of the enactment of this
subsection, the Council shall recommend to the
Administrator standards and requirements for chief
executive officers, or entities designated by chief
executive officers, of States and communities
participating in the National Flood Insurance Program
to use in mapping flood hazards located in States and
communities that choose to develop alternative maps to
the flood insurance rate maps developed by the Agency.
The recommended standards and requirements shall
include procedures for providing notification and
appeal rights to individuals within the communities of
the proposed flood elevation determinations.
``(2) Exemption from rulemaking.--Until such time as
the Administrator promulgates regulations implementing
paragraph (1) of this subsection, the Administrator
may, notwithstanding any other provision of law, adopt
policies and procedures necessary to implement such
paragraphs without undergoing notice and comment
rulemaking and without conducting regulatory analyses
otherwise required by statute, regulation, or executive
order.''.
(b) FEMA Identification of Flood-prone Areas.--Subsection (a)
of section 1360 of the National Flood Insurance Act of 1968 (42
U.S.C. 4101(a)) is amended--
(1) in paragraph (2), by striking the period at the
end and inserting ``; and'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A), and (B), respectively, and
realigning such subparagraphs so as to be indented 4
ems from the left margin;
(3) by striking ``is authorized to consult'' and
inserting the following: ``is authorized--
``(1) to consult'';
(4) by adding at the end the following new paragraph:
``(2) to receive proposed alternative maps from
communities developed pursuant to standards and
requirements recommended by the Technical Mapping
Advisory Council, as required by section 100215(m) of
the Biggert-Waters Flood Insurance Reform Act of 2012
(42 U.S.C. 4101a(m)) and adopted by the Administrator
as required by section 100216(c)(3) of such Act (42
U.S.C. 4101b(c)(3)), so that the Administrator may--
``(A) publish information with respect to all
flood plain areas, including coastal areas
located in the United States, which have
special flood hazards, and
``(B) establish or update flood-risk zone
data in all such areas, and make estimates with
respect to the rates of probable flood caused
loss for the various flood risk zones for each
of these areas until the date specified in
section 1319.''.
(c) National Flood Mapping Program.--Section 100216 of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4101b) is amended--
(1) in subsection (a), by inserting ``prepared by the
Administrator, or by a community pursuant to section
1360(a)(2) of the National Flood Insurance Act of
1968,'' after ``Program rate maps''; and
(2) in subsection (c)--
(A) in paragraph (1)(B), by striking ``and''
at the end;
(B) in paragraph (2)(C), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following new
paragraphs:
``(3) establish and adopt standards and requirements
for development by States and communities of
alternative flood insurance rate maps to be submitted
to the Administrator pursuant to section 1360(a)(2) of
the National Flood Insurance Act of 1968, taking into
consideration the recommendations of the Technical
Mapping Advisory Council made pursuant to section
100215(m) of this Act (42 U.S.C. 4101a(m)); and
``(4) in the case of proposed alternative maps
received by the Administrator pursuant to such section
1360(a)(2), not later than the expiration of the 6-
month period beginning upon receipt of such proposed
alternative maps--
``(A) determine whether such maps were
developed in accordance with the standards and
requirements adopted pursuant to paragraph (3)
of this subsection; and
``(B) approve or disapprove such proposed
maps for use under National Flood Insurance
Program.''.
TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED
MITIGATION
SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM CREDITS TO
MAXIMUM NUMBER OF COMMUNITIES PRACTICABLE.
Subsection (b) of section 1315 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended--
(1) in paragraph (2), by striking ``may'' and
inserting ``shall''; and
(2) in paragraph (3), by inserting ``, and the
Administrator shall provide credits to the maximum
number of communities practicable'' after ``under this
program''.
SEC. 402. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED AREAS.
(a) In General.--Section 1361 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4102) is amended by adding at the end
the following new subsection:
``(e) Community Accountability for Repetitively Damaged
Areas.--
``(1) In general.--The Administrator shall, by
regulation, require any covered community (as such term
is defined in paragraph (5))--
``(A) to identify the areas within the
community where properties described in
paragraph (5)(B) or flood-damaged facilities
are located to determine areas repeatedly
damaged by floods and to assess, with
assistance from the Administrator, the
continuing risks to such areas;
``(B) to develop a community-specific plan
for mitigating continuing flood risks to such
repetitively flooded areas and to submit such
plan and plan updates to the Administrator at
appropriate intervals;
``(C) to implement such plans;
``(D) to make such plan, plan updates, and
reports on progress in reducing flood risk
available to the public, subject to section
552a of title 5, United States Code.
``(2) Incorporation into existing plans.--Plans
developed pursuant to paragraph (1) may be incorporated
into mitigation plans developed under section 1366 of
this Act (42 U.S.C. 4104c) and hazard mitigation plans
developed under section 322 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5165).
``(3) Assistance to communities.--
``(A) Data.--To assist communities in
preparation of plans required under paragraph
(1), the Administrator shall, upon request,
provide covered communities with appropriate
data regarding the property addresses and dates
of claims associated with insured properties
within the community.
``(B) Mitigation grants.--In making
determinations regarding financial assistance
under the authorities of this Act, the
Administrator may consider the extent to which
a community has complied with this subsection
and is working to remedy problems with
addressing repeatedly flooded areas.
``(4) Sanctions.--
``(A) In general.--The Administrator shall,
by regulations issued in accordance with the
procedures established under section 553 of
title 5, United States Code, regarding
substantive rules, provide appropriate
sanctions for covered communities that fail to
comply with the requirements under this
subsection or to make sufficient progress in
reducing the flood risks to areas in the
community that are repeatedly damaged by
floods.
``(B) Notice.--Before imposing any sanction
pursuant to this paragraph, the Administrator
shall provide the covered community involved
with notice of the non-compliance that could
result in the imposition of sanctions, which
shall include recommendations for actions to
bring the covered community into compliance.
``(C) Considerations.--In determining
appropriate sanctions to impose under this
paragraph, the Administrator shall consider the
resources available to the covered community
involved, including Federal funding, the
portion of the covered community that lies
within an area having special flood hazards,
and other factors that make it difficult for
the covered community to conduct mitigation
activities for existing flood-prone structures.
``(5) Covered community.--For purposes of this
subsection, the term `covered community' means a
community--
``(A) that is participating, pursuant to
section 1315, in the national flood insurance
program; and
``(B) within which are located--
``(i) 50 or more repetitive loss
structures for each of which, during
any 10-year period, two or more claims
for payments under flood insurance
coverage have been made with a
cumulative amount exceeding $1,000;
``(ii) 5 or more severe repetitive
loss structures (as such term is
defined in section 1366(h)) for which
mitigation activities meeting the
standards for approval under section
1366(c)(2)(A) have not been conducted;
or
``(iii) a public facility or a
private nonprofit facility (as such
terms are as defined in section 102 of
the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C.
5122)), that has received assistance
for repair, restoration,
reconstruction, or replacement under
section 406 of the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5172) in
connection with more than one flooding
event in the most recent 10-year
period.
``(6) Repetitive-loss structure.--For purposes of
this subsection, the term `repetitive loss structure'
has the meaning given such term in section 1370 (42
U.S.C. 4121).
``(7) Reports to congress.--Not later than the
expiration of the 6-year period beginning upon the date
of the enactment of this subsection, and not less than
every 2 years thereafter, the Administrator shall
submit a report to the Congress regarding the progress
in implementing plans developed pursuant to paragraph
(1)(B).''.
(b) Regulations.--The Administrator of the Federal Emergency
Management Agency shall issue regulations necessary to carry
out subsection (e) of section 1361 of the National Flood
Insurance Act of 1968, as added by the amendment made by
subsection (a) of this section, not later than the expiration
of the 12-month period that begins on the date of the enactment
of this Act.
SEC. 403. INCREASED COST OF COMPLIANCE COVERAGE.
(a) Coverage of Properties at High Risk of Future Flood
Damage.--Subsection (b) of section 1304 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
(1) in paragraph (4), by redesignating subparagraphs
(A) through (D) as clauses (i) through (iv),
respectively, and realigning such clauses, as so
redesignated, so as to be indented 6 ems from the left
margin;
(2) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and
realigning such subparagraphs, as so redesignated, so
as to be indented 4 ems from the left margin;
(3) by striking the subsection designation and all
that follows through ``The national'' and inserting the
following:
``(b) Additional Coverage for Compliance With Land Use and
Control Measures.--
``(1) Authority; eligible properties.--The
national'';
(4) in subparagraph (C) (as so redesignated by
paragraph (2) of this subsection), by striking ``Fund''
and all that follows and inserting ``Fund to require
the implementation of such measures;'';
(5) in subparagraph (D)(iv) (as so redesignated by
paragraphs (1) and (2) of this subsection), by striking
the period at the end and inserting a semicolon; and
(6) by adding at the end the following new
subparagraphs:
``(E) properties that have been identified by
the Administrator, or by a community in
accordance with such requirements as the
Administrator shall establish, as at a high
risk of future flood damage; and
``(F) properties that are located within an
area identified pursuant to section
1361(e)(1)(A) (42 U.S.C. 4102(e)(1)(A)) by a
covered community (as such term is defined in
paragraph (3) of such section 1361(e)).''.
(b) Coverage Amount.--Section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
(1) in paragraph (1) (as so designated by subsection
(a)(3) of this section), by striking the last sentence
(relating to a surcharge); and
(2) by adding at the end the following new paragraph:
``(2) Coverage amount.--
``(A) Primary coverage.--Each policy for
flood insurance coverage made available under
this title shall provide coverage under this
subsection having an aggregate liability for
any single property of $30,000.
``(B) Enhanced coverage.--The Administrator
shall make additional coverage available under
this subsection, in excess of the limit
specified in subparagraph (A), having an
aggregate liability for any single property of
up to $60,000.''.
(c) Amount of Surcharge.--Subsection (b) of section 1304 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)),
as amended by the preceding provisions of this section, is
further amended by adding at the end the following new
paragraph:
``(3) Surcharge for coverage.--
``(A) Primary coverage.--The Administrator
shall impose a surcharge on each insured of
such amount per policy as the Administrator
determines is appropriate to provide cost of
compliance coverage in accordance with
paragraph (2)(A).
``(B) Enhanced coverage.--For each flood
policy for flood insurance coverage under this
title under which additional cost of compliance
coverage is provided pursuant to paragraph
(2)(B), the Administrator shall impose a
surcharge, in addition to the surcharge under
subparagraph (A) of this paragraph, in such
amount as the Administrator determines is
appropriate for the amount of such coverage
provided.''.
(d) Use of Certain Materials.--Subsection (b) of section 1304
of the National Flood Insurance Act of 1968 (42 U.S.C.
4011(b)), as amended by the preceding provisions of this
section, is further amended by adding at the end the following
new paragraph:
``(4) Use of certain materials.--The Administrator
shall require that any measures implemented using
amounts made available from coverage provided pursuant
to this subsection be carried out using materials,
identified by the Administrator, that minimize the
impact of flooding on the usability of the covered
property and reduce the duration that flooding renders
the property unusable or uninhabitable.''.
(e) Continued Flood Insurance Requirement.--Subsection (b) of
section 1304 of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(b)), as amended by the preceding provisions of this
section, is further amended by adding at the end the following
new paragraph:
``(5) Continued flood insurance requirement.--The
Administrator may require, as a condition of providing
cost of compliance coverage under this subsection for a
property, that the owner of the property enter into
such binding agreements as the Administrator considers
necessary to ensure that the owner of the property (and
any subsequent owners) will maintain flood insurance
coverage under this title for the property in such
amount, and at all times during a period having such
duration, as the Administrator considers appropriate to
carry out the purposes of this subsection.''.
TITLE V--PROGRAM INTEGRITY
SEC. 501. INDEPENDENT ACTUARIAL REVIEW.
Section 1309 of the National Flood Insurance Act of 1968 (42
U.S.C. 4016) is amended by adding at the end the following new
subsection:
``(e) Independent Actuarial Review.--
``(1) Fiduciary responsibility.--The Administrator
has a responsibility to ensure that the National Flood
Insurance Program remains financially sound. Pursuant
to this responsibility, the Administrator shall from
time to time review and eliminate nonessential costs
and positions within the Program, unless otherwise
authorized or required by law, as the Administrator
determines to be necessary.
``(2) Annual independent actuarial study.--The
Administrator shall provide for an independent
actuarial study of the National Flood Insurance Program
to be conducted annually, which shall analyze the
financial position of the program based on the long-
term estimated losses of the program. The Administrator
shall submit a report (together with the independent
actuarial study) annually to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate describing the results of such study, including
a determination of whether the Program has collected
revenue sufficient to cover the administrative expenses
of carrying out the flood insurance program, which are
reflected in the risk premium rates, cost of capital,
all other costs associated with the transfer of risks,
and expected claims payments during the reporting
period, and an overall assessment of the financial
status of the Program.
``(3) Determination of actuarial budget deficit.--
``(A) Requirement.--Within the report
submitted under paragraph (2), the
Administrator shall issue a determination of
whether there exists an actuarial budget
deficit for the Program for the year covered in
the report. The report shall recommend any
changes to the Program, if necessary, to ensure
that the program remains financially sound.
``(B) Basis of determination.--The
determination required by subparagraph (A)
shall be based solely upon whether the portion
of premiums estimated and collected by the
Program during the reporting period is
sufficient to cover the administrative expenses
of carrying out the flood insurance program,
which are reflected in the risk premium rates,
cost of capital, all other costs associated
with the transfer of risk, and expected claims
payments for the reporting period.
``(4) Quarterly reports.--During each fiscal year, on
a calendar quarterly basis, the Secretary shall cause
to be published in the Federal Register or comparable
method, with notice to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate, information which shall specify--
``(A) the cumulative volume of policies that
have been underwritten under the National Flood
Insurance Program during such fiscal year
through the end of the quarter for which the
report is submitted;
``(B) the types of policies insured,
categorized by risk;
``(C) any significant changes between actual
and projected claim activity;
``(D) projected versus actual loss rates;
``(E) the cumulative number of currently
insured repetitive-loss properties, severe
repetitive-loss properties, and extreme
repetitive-loss properties that have been
identified during such fiscal year through the
end of the quarter for which the report is
submitted;
``(F) the cumulative number of properties
that have undergone mitigation assistance,
through the National Flood Insurance Program,
during such fiscal year through the end of the
quarter for which the report is submitted; and
``(G) the number and location, by State or
territory, of each policyholder that has been
identified for such fiscal year as an eligible
household for purposes of the flood insurance
affordability program under section 1326.
The first quarterly report under this paragraph shall
be submitted on the last day of the first quarter of
fiscal year 2018, or on the last day of the first full
calendar quarter following the enactment of the 21st
Century Flood Reform Act, whichever occurs later.''.
SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE AFFORDABILITY
SURCHARGE.
(a) In General.--Section 1308A of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015a) is amended--
(1) in subsection (a), by striking the first sentence
and inserting the following: ``The Administrator shall
impose and collect a non-refundable annual surcharge,
in the amount provided in subsection (b), on all
policies for flood insurance coverage under the
National Flood Insurance Program that are newly issued
or renewed after the date of the enactment of this
section.''; and
(2) by striking subsection (b) and inserting the
following new subsection:
``(b) Amount.--The amount of the surcharge under subsection
(a) shall be $40, except as follows:
``(1) Non-primary residences eligible for prp.--The
amount of the surcharge under subsection (a) shall be
$125 in the case of in the case of a policy for any
property that is--
``(A) a residential property that is not the
primary residence of an individual, and
``(B) eligible for preferred risk rate method
premiums.
``(2) Non-residential properties and non-primary
residences not eligible for prp.--The amount of the
surcharge under subsection (a) shall be $275 in case of
in the case of a policy for any property that is--
``(A) a non-residential property; or
``(B) a residential property that is--
``(i) not the primary residence of an
individual; and
``(ii) not eligible for preferred
risk rate method premiums.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to policies for flood insurance
coverage under the National Flood Insurance Act of 1968 that
are newly issued or renewed after the expiration of the 12-
month period beginning on the date of the enactment of this
Act.
SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.
Section 1310A of the National Flood Insurance Act of 1968 (42
U.S.C. 4017A) is amended--
(1) in subsection (c)(2)(D), by inserting before the
period at the end the following: ``, including any
provisions relating to chargeable premium rates or
annual increases of such rates'';
(2) in subsection (c)(3), by striking subparagraph
(A) and inserting the following new subparagraph:
``(A) Parity.--In exercising the authority
granted under paragraph (1) to increase
premiums, the Administrator shall institute a
single annual, uniform rate of assessment for
all individual policyholders.''; and
(3) in subsection (d)--
(A) by striking paragraph (1) and inserting
the following new paragraph:
``(1) In general.--Beginning in fiscal year 2018 and
not ending until the fiscal year in which the ratio
required under subsection (b) is achieved--
``(A) in each fiscal year the Administrator
shall place in the Reserve Fund an amount equal
to not less than 7.5 percent of the reserve
ratio required under subsection (b); and
``(B) if in any given fiscal year the
Administrator fails to comply with subparagraph
(A), for the following fiscal year the
Administrator shall increase the rate of the
annual assessment pursuant to subsection
(c)(3)(A) by at least one percentage point over
the rate of the annual assessment pursuant to
subsection (c)(3)(A) in effect on the first day
of such given fiscal year.'';
(B) in paragraph (2), by inserting before the
period at the end the following: ``nor to
increase assessments pursuant to paragraph
(1)(B)''; and
(C) in paragraph (3), by inserting before the
period at the end the following: ``and
paragraph (1)(B) shall apply until the fiscal
year in which the ratio required under
subsection (b) is achieved''.
SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS PROPERTIES.
(a) Definition.--Section 1370 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4121), as amended by the preceding
provisions of this Act, is further amended--
(1) in subsection (a)--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8) through
(18) as paragraphs (7) through (17),
respectively; and
(2) by adding at the end the following new
subsection:
``(d) Multiple-Loss Properties.--
``(1) Definitions.--As used in this title:
``(A) Multiple-loss property.--The term
`multiple-loss property' means any property
that is a repetitive-loss property, a severe
repetitive-loss property, or an extreme
repetitive-loss property.
``(B) Qualified claims payment.--The term
`qualified claims payment' means a claims
payment of any amount made under flood
insurance coverage under this title in
connection with loss resulting from a flood
event that occurred after the date of the
enactment of the 21st Century Flood Reform Act,
but not including any claim that occurred
before a structure was made compliant with
State and local floodplain management
requirements.
``(C) Repetitive-loss property.--The term
`repetitive-loss property' means a structure
that has incurred flood damage for which two or
more separate claims payments of any amount
have been made under flood insurance coverage
under this title.
``(D) Severe repetitive-loss property.--The
term `severe repetitive-loss property' means a
structure that has incurred flood damage for
which--
``(i) 4 or more separate claims
payments have been made under flood
insurance coverage under this title,
with the amount of each such claim
exceeding $5,000, and with the
cumulative amount of such claims
payments exceeding $20,000; or
``(ii) at least 2 separate claims
payments have been made under flood
insurance coverage under this title,
with the cumulative amount of such
claims payments exceeding the value of
the structure.
``(E) Extreme repetitive-loss property.--The
term `extreme repetitive-loss property' means a
structure that has incurred flood damage for
which at least 2 separate claims have been made
under flood insurance coverage under this
title, with the cumulative amount of such
claims payments exceeding 150 percent of the
maximum coverage amount available for the
structure.
``(2) Treatment of claims before compliance with
state and local requirements.--The Administrator shall
not consider claims that occurred before a structure
was made compliant with State and local floodplain
management requirements for purposes of determining a
structure's status as a multiple-loss property.''.
(b) Premium Adjustment to Reflect Current Flood Risk.--
(1) In general.--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:
``(p) Premium Adjustment to Reflect Current Flood Risk.--
``(1) In general.--Except as provided in paragraph
(2), the Administrator shall rate a property for which
two or more qualified claims payments have been made
and that is charged a risk premium rate estimated under
section 1307(a)(1) (42 U.S.C. 4014(a)(1)) based on the
current risk of flood reflected in the flood insurance
rate map in effect at the time of rating.
``(2) Adjustment for existing policies.--
Notwithstanding subsection (e) of this section, for
policies for flood insurance under this title in force
on the date of the enactment of this Act for properties
described in paragraph (1)--
``(A) for any property for which two
qualified claims payments have been made, the
Administrator shall increase risk premium rates
by 10 percent each year until such rates comply
with paragraph (1) of this subsection; and
``(B) for any property for which three or
more qualified claims payments have been made,
the Administrator shall increase risk premium
rates by 15 percent each year until such rates
comply with paragraph (1) of this
subsection.''.
(2) Conforming amendment.--Section 1307(g)(2) of the
National Flood Insurance Act of 1968 (42 U.S.C.
4014(g)(2)) is amended by striking subparagraph (B) and
inserting the following new subparagraph:
``(B) in connection with a multiple-loss
property.''.
(c) Pre-FIRM Multiple-loss Property.--
(1) Termination of subsidy.--Section 1307 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014)
is amended--
(A) in subsection (a)(2)--
(i) by striking subparagraph (C) and
inserting the following new
subparagraph:
``(C) any extreme repetitive-loss
property;'';
(ii) in subparagraph (D), by striking
``or'';
(iii) in subparagraph (E)--
(I) in clause (i), by
striking ``fair''; and
(II) in clause (ii)--
(aa) by striking
``fair''; and
(bb) by striking
``and'' and inserting
``or''; and
(iv) by adding at the end the
following new subparagraph:
``(F) any property for which two or more
qualified claims payments have been made;
and''; and
(B) by striking subsection (h).
(2) Annual limitation on premium increases.--
Subsection (e) of section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended--
(A) in paragraph (3), by striking ``and'' at
the end;
(B) in paragraph (4)--
(i) by striking ``the chargeable
risk'' and inserting ``notwithstanding
paragraph (5), the chargeable risk'';
and
(ii) by striking ``described under
paragraph (3).'' and inserting
``estimated under section 1307(a)(1);
and''; and
(C) by adding at the end the following new
paragraph:
``(5) the chargeable risk premium rates for flood
insurance under this title for any properties described
in subparagraph (F) of section 1307(a)(2) shall be
increased--
``(A) for any property for which two
qualified claims payments have been made, by 10
percent each year, until the average risk
premium rate for such property is equal to the
average of the risk premium rates for
properties estimated under section 1307(a)(1);
and
``(B) for any property for which three or
more qualified claims payments have been made,
by 15 percent each year, until the average risk
premium rate for such property is equal to the
average of the risk premium rates for
properties estimated under section
1307(a)(1).''.
(d) Minimum Deductibles for Certain Multiple-loss
Properties.--
(1) Clerical amendment.--The National Flood Insurance
Act of 1968, as amended by the preceding provisions of
this Act, is further amended--
(A) by transferring subsection (b) of section
1312 (42 U.S.C. 4019(b)) to section 1306 (42
U.S.C. 4013), inserting such subsection at the
end of such section, and redesignating such
subsection as subsection (f); and
(B) in section 1312 (42 U.S.C. 4019), by
redesignating subsection (c) as subsection (b).
(2) Certain multiple-loss properties.--Subsection (f)
of section 1306 of the National Flood Insurance Act of
1968 (42 U.S.C. 4013(e)), as so transferred and
redesignated by paragraph (1) of this subsection, is
amended adding at the end the following new paragraph:
``(3) Certain multiple-loss properties.--
Notwithstanding paragraph (1) or (2), the minimum
annual deductible for damage to any severe repetitive-
loss property or extreme repetitive-loss property shall
be not less than $5,000.''.
(e) Claim History Validation.--Beginning not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act, the Administrator of the Federal
Emergency Management Agency shall undertake efforts to validate
the reasonable accuracy of claim history data maintained
pursuant to the National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.).
(f) Increased Cost of Compliance Coverage.--Subparagraph (A)
of section 1304(b)(1) of the National Flood Insurance Act of
1968 (42 U.S.C. 4011(b)(1)(A)), as amended by the preceding
provisions of this Act, is further amended by striking
``repetitive loss structures'' and inserting ``multiple-loss
properties''.
(g) Availability of Insurance for Multiple-Loss Properties.--
(1) In general.--The National Flood Insurance Act of
1968 is amended by inserting after section 1304 (42
U.S.C. 4011) the following new section:
``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS PROPERTIES.
``(a) Date and Information Identifying Current Flood Risk.--
The Administrator may provide flood insurance coverage under
this title for a multiple-loss property only if the owner of
the property submits to the Administrator such data and
information necessary to determine such property's current risk
of flood, as determined by the Administrator, at the time of
application for or renewal of such coverage.
``(b) Refusal To Mitigate.--
``(1) In general.--Except as provided pursuant to
paragraph (2), the Administrator may not make flood
insurance coverage available under this title for any
extreme repetitive-loss property for which a claim
payment for flood loss was made under coverage made
available under this title that occurred after the date
of enactment of the 21st Century Flood Reform Act if
the property owner refuses an offer of mitigation for
the property under section 1366(a)(2) (42 U.S.C.
4104c(a)(2)).
``(2) Exceptions; appeals.--The Director shall
develop guidance to provide appropriate exceptions to
the prohibition under paragraph (1) and to allow for
appeals to such prohibition.''.
(2) Effective date.--Section 1304A of the National
Flood Insurance Act of 1968, as added by paragraph (1)
of this subsection, shall apply beginning upon the
expiration of the 12-month period beginning on the date
of the enactment of this Act.
(h) Rates for Properties Newly Mapped Into Areas With Special
Flood Hazards.--Subsection (i) of section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(i)) is amended--
(1) by striking the subsection designation and all
that follows through ``Notwithstanding'' and inserting
the following:
``(i) Rates for Properties Newly Mapped Into Areas With
Special Flood Hazards.--
``(1) In general.--Except as provided in paragraph
(2) and notwithstanding'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the
left margins of such subparagraphs, as so redesignated,
and the matter following subparagraph (B), 2 ems to the
right; and
(3) by adding at the end the following new paragraph:
``(2) Inapplicability to multiple-loss properties.--
Paragraph (1) shall not apply to multiple-loss
properties.''.
(i) Clear Communication of Multiple-loss Property Status.--
(1) In general.--Subsection (l) of section 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C.
4015(l)), as amended by the preceding provisions of
this Act, is further amended by adding at the end the
following new paragraph:
``(2) Multiple-loss properties.--Pursuant to
paragraph (1), the Administrator shall clearly
communicate to all policyholders for multiple-loss
properties before the effectiveness of any such new or
renewed coverage and after each qualified claims
payment for the property--
``(A) the availability of flood mitigation
assistance under section 1366; and
``(B) the effect on the premium rates charged
for such a property of filing any further
claims under a flood insurance policy with
respect to that property.''.
(j) Mitigation Assistance Program.--Section 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting after the period at the end of the
first sentence the following: ``Priority under
the program shall be given to providing
assistance with respect to multiple-loss
properties.'';
(B) in paragraph (1), by inserting ``and''
after the semicolon at the end; and
(C) by striking paragraphs (2) and (3) and
inserting the following:
``(2) to property owners, in coordination with the
State and community, in the form of direct grants under
this section for carrying out mitigation activities
that reduce flood damage to extreme repetitive-loss
properties.
The Administrator shall take such actions as may be necessary
to ensure that grants under this subsection are provided in a
manner that is consistent with the delivery of coverage for
increased cost of compliance provided under section 1304(b).'';
(2) in subsection (c)(2)(A)(ii), by striking ``severe
repetitive loss structures'' and inserting ``multiple-
loss properties'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``Severe repetitive
loss structures'' and inserting
``Extreme repetitive-loss properties'';
and
(ii) by striking ``severe repetitive
loss structures'' and inserting
``extreme repetitive-loss properties'';
(B) in paragraph (2)--
(i) by striking ``Repetitive loss
structures'' and inserting ``Severe
repetitive-loss properties'';
(ii) by striking ``repetitive loss
structures'' and inserting ``severe
repetitive-loss properties''; and
(iii) by striking ``90 percent'' and
inserting ``100 percent'';
(C) by redesignating paragraph (3) as
paragraph (4); and
(D) by inserting after paragraph (2) the
following new paragraph:
``(3) Repetitive-loss property.--In the case of
mitigation activities to repetitive-loss properties, in
an amount up to 100 percent of all eligible costs.'';
(4) in subsection (h)--
(A) by striking paragraphs (2) and (3);
(B) by striking the subsection designation
and all that follows through ``shall apply:'';
and
(C) in paragraph (1)--
(i) by striking ``Community'' and
inserting ``Definition of Community'';
(ii) by striking ``The'' and
inserting ``For purposes of this
section, the'';
(iii) by redesignating such paragraph
as subsection (j);
(iv) in subparagraph (B), by striking
``subparagraph (A)'' and inserting
``paragraph (1)'';
(v) by redesignating subparagraphs
(A) and (B) as paragraphs (1) and (2),
respectively;
(vi) in paragraph (1), as so
redesignated by clause (v) of this
subparagraph, by redesignating clauses
(i) and (ii) as subparagraphs (A) and
(B), respectively (and moving the
margins two ems to the left); and
(vii) by moving the left margins of
subsection (j) (as so redesignated) and
paragraphs (1) and (2), all as so
redesignated, two ems to the left; and
(5) by inserting after subsection (g) the following
new subsections:
``(h) Alignment With Increased Cost of Compliance.--
Notwithstanding any provision of law, any funds appropriated
for assistance under this title may be transferred to the
National Flood Insurance Fund established under section 1310
(42 U.S.C. 4017) for the payment of claims to enable the
Administrator to deliver grants under subsection (a)(2) of this
section to align with the delivery of coverage for increased
cost of compliance for extreme repetitive-loss properties.
``(i) Funding.--
``(1) Authorization of appropriations.--
Notwithstanding any other provision of law, assistance
provided under this section shall be funded by--
``(A) $225,000,000 in each fiscal year,
subject to offsetting collections, through risk
premium rates for flood insurance coverage
under this title, and shall be available
subject to section 1310(f);
``(B) any penalties collected under section
102(f) the Flood Disaster Protect Act of 1973
(42 U.S.C. 4012a(f); and
``(C) any amounts recaptured under subsection
(e) of this section.
The Administrator may not use more than 5 percent of
amounts made available under this subsection to cover
salaries, expenses, and other administrative costs
incurred by the Administrator to make grants and
provide assistance under this section.
``(2) Availability.--Amounts appropriated pursuant to
this subsection for any fiscal year may remain
available for obligation until expended.''.
(k) Repeal.--Section 1367 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4104d) is repealed.
SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH EXCESSIVE
LIFETIME CLAIMS.
Section 1305 of the National Flood Insurance Act of 1968 (42
U.S.C. 4012) is amended by adding at the end the following new
subsection:
``(e) Prohibition of Coverage for Properties With Excessive
Lifetime Claims.--The Administrator may not make available any
new or renewed coverage for flood insurance under this title
for any multiple-loss property for which the aggregate amount
in claims payments that have been made after the expiration of
the 18-month period beginning on the date of the enactment of
this subsection under flood insurance coverage under this title
exceeds three times the amount of the replacement value of the
structure.''.
SEC. 506. PROHIBITION OF NEW COVERAGE FOR STRUCTURES WITH HIGH-VALUE
REPLACEMENT COSTS.
Section 1305 of the National Flood Insurance Act of 1968 (42
U.S.C. 4012), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new
subsection:
``(f) Prohibition of New Coverage for Structures With High-
value Replacement Costs.--Notwithstanding any other provision
of this title, in carrying out the fiduciary responsibility to
the National Flood Insurance Program under section 1309(e) (42
U.S.C. 4016(e)) and to reduce future risks to the National
Flood Insurance Fund, on or after January 1, 2021, the
Administrator may not make available any new or renewed flood
insurance coverage under this title for any residential
property having 4 or fewer residences and a replacement value
of the structure, at the time, exclusive of the value of the
real estate on which the structure is located, that is equal to
or exceeds the amount that is equal to $1,000,000 multiplied by
the number of dwelling units in the structure (as such amount
is adjusted pursuant to paragraph (1)), subject to the
following provisions:
``(1) Adjustment of amounts.--The dollar amount in
the matter of this subsection that precedes this
paragraph (as it may have been previously adjusted)
shall be adjusted for inflation by the Administrator
upon the expiration of the 5-year period beginning upon
the enactment of this subsection and upon the
expiration of each successive 5-year period thereafter,
in accordance with an inflationary index selected by
the Administrator.
``(2) Valuation.--The Administrator shall determine
the replacement value of a property for purposes of
this subsection using such valuation methods or indicia
as the Administrator determines are reasonably
accurate, consistent, reliable, and available for such
purposes.''.
SEC. 507. PAY FOR PERFORMANCE AND STREAMLINING COSTS AND REIMBURSEMENT.
Section 1345 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
subsection:
``(g) Write Your Own Allowance and Program Savings.--
``(1) Allowance rate.--
``(A) Limitation.--The allowance paid to
companies participating in the Write Your Own
Program (as such term is defined in section
1370 (42 U.S.C. 4004)) with respect to a policy
for flood insurance coverage made available
under this title shall not be greater than 27.9
percent of the chargeable premium for such
coverage.
``(B) Inapplicability.--Subparagraph (A)
shall not apply to actual and necessary costs
related to section 1312(a) (42 U.S.C, 4019(a)),
or to payments deemed necessary by the
Administrator.
``(C) Implementation.--The limitation in
subparagraph (A) shall be imposed by equal
reductions over the 3-year period beginning on
the date of the enactment of this subsection.
``(2) Program savings.--
``(A) Implementation.--The Administrator,
within three years of the date of the enactment
of this Act, shall reduce the costs and
unnecessary burdens for the companies
participating in the Write Your Own program by
at least half of the amount by which the
limitation under paragraph (1)(A) reduced costs
compared to the costs as of the date of the
enactment of this subsection.
``(B) Consideration of savings.--In meeting
the requirement of subparagraph (A), the
Administrator shall consider savings
including--
``(i) indirect payments by the
Administrator of premium;
``(ii) eliminating unnecessary
communications requirements;
``(iii) reducing the frequency of
National Flood Insurance Program
changes;
``(iv) simplifying the flood rating
system; and
``(v) other ways of streamlining the
Program to reduce costs while
maintaining customer service and
distribution.''.
SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.
(a) Penalties.--Paragraph (5) of section 102(f) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is
amended by striking ``$2,000'' and inserting ``$5,000''.
(b) Insured Depository Institutions.--Subparagraph (A) of
section 10(i)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1820(i)(2)(A)) is amended by striking ``date of
enactment of the Riegle Community Development and Regulatory
Improvement Act of 1994 and biennially thereafter for the next
4 years'' and inserting ``date of enactment of the 21st Century
Flood Reform Act and biennially thereafter''.
(c) Credit Unions.--Subparagraph (A) of section 204(e)(2) of
the Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is
amended by striking ``date of enactment of the Riegle Community
Development and Regulatory Improvement Act of 1994 and
biennially thereafter for the next 4 years'' and inserting
``date of enactment of the 21st Century Flood Reform Act and
annually thereafter''.
(d) Government-Sponsored Enterprises.--Paragraph (4) of
section 1319B(a) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is
amended, in the matter after and below subparagraph (B), by
striking ``first, third, and fifth annual reports under this
subsection required to be submitted after the expiration of the
1-year period beginning on the date of enactment of the Riegle
Community Development and Regulatory Improvement Act of 1994''
and inserting ``first annual report under this subsection
required to be submitted after the expiration of the 1-year
period beginning on the date of enactment of the 21st Century
Flood Reform Act and every such second annual report
thereafter''.
(e) Guidelines.--The Federal entities for lending regulation
(as such term is defined in section 3(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4003(a))), in consultation
with the Administrator of the Federal Emergency Management
Agency, shall jointly update and reissue the rescinded document
of the Administrator entitled ``Mandatory Purchase of Flood
Insurance Guidelines'' (lasted updated on October 29, 2014).
The updated document shall incorporate recommendations made by
the Comptroller General pursuant to the study conducted under
section 514 of this Act.
SEC. 509. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN STATES
ALLOWING ALL-PERILS POLICIES.
Section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a), as amended by the preceding provisions of this
Act, is further amended--
(1) in subsection (a), by striking ``After'' and
inserting ``Subject to subsection (i) of this section,
after'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``Each''
and inserting ``Subject to subsection (i) of
this section, each'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``A'' the first place such term appears
and inserting ``Subject to subsection
(i) of this section, a'';
(ii) in subparagraph (B), by striking
``Each'' and inserting ``Subject to
subsection (i) of this section, each'';
and
(C) in paragraph (3), by striking ``The'' the
first place such term appears and inserting
``Subject to subsection (i) of this section,
the'';
(3) in subsection (e)(1), by striking ``If'' and
inserting ``Subject to subsection (i) of this section,
if''; and
(4) by adding at the end the following new
subsection:
``(i) Satisfaction of Mandatory Purchase Requirement in
States Allowing All-perils Policies.--
``(1) Waivers.--Subsections (a) and (b) of this
section shall not apply with respect to residential
properties in any State that allows any property
insurance coverage that covers `all-perils' except
specifically excluded perils and that includes coverage
for flood perils in an amount at least equal to the
outstanding principal balance of the loan or the
maximum limit of flood insurance coverage made
available under this title with respect to such type of
residential property, whichever is less.
``(2) Definitions, procedures, standards.--The
Administrator may establish such definitions,
procedures, and standards as the Administrator
considers necessary for making determinations under
paragraph (1).''.
SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS.
Section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a), as amended by the preceding provisions of this
Act, is further amended--
(1) in subsection (c)(2)(A), by striking ``$5,000 or
less'' and inserting the following: ``$25,000 or less,
except that such amount (as it may have been previously
adjusted) shall be adjusted for inflation by the
Administrator upon the expiration of the 5-year period
beginning upon the enactment of the 21st Century Flood
Reform Act and upon the expiration of each successive
5-year period thereafter, in accordance with an
inflationary index selected by the Administrator''; and
(2) by adding at the end the following new
subsection:
``(j) Flood Insurance Purchase Requirements.--Notwithstanding
any other provision of law, a State or local government or
private lender may require the purchase of flood insurance
coverage for a structure that is located outside of an area
having special flood hazards.''.
SEC. 511. CLARIFICATIONS; DEADLINE FOR APPROVAL OF CLAIMS.
(a) Rule of Construction.--Part C of chapter II of the
National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.),
as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 1350. RULE OF CONSTRUCTION.
``A policyholder of a policy for flood insurance coverage
made available under this title must exhaust all administrative
remedies, including submission of disputed claims to appeal
under any appeal process made available by the Administrator,
prior to commencing legal action on any disputed claim under
such a policy.''.
(b) Deadline for Approval of Claims.--
(1) In general.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as amended by
the preceding provisions of this Act, is further
amended--
(A) in subsection (a), by striking ``The
Administrator'' and inserting ``Subject to the
other provisions of this section, the
Administrator''; and
(B) by adding at the end the following new
subsection:
``(c) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide
that, in the case of any claim for damage to or loss of
property under flood insurance coverage made available
under this title, an initial determination regarding
approval of a claim for payment or disapproval of the
claim be made, and notification of such determination
be provided to the insured making such claim, not later
than the expiration of the 120-day period (as such
period may be extended pursuant to paragraph (2))
beginning upon the day on which the policyholder
submits a signed proof of loss detailing the damage and
amount of the loss. Payment of approved claims shall be
made as soon as possible after such approval.
``(2) Extension of deadline.--The Administrator shall
provide that the period referred to in paragraph (1)
may be extended by a single additional period of 15
days in cases where extraordinary circumstances are
demonstrated. The Administrator shall, by regulation,
establish criteria for demonstrating such extraordinary
circumstances and for determining to which claims such
extraordinary circumstances apply.''.
(2) Applicability.--The amendments made by paragraph
(1) shall apply to any claim under flood insurance
coverage made available under the National Flood
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) pending
on the date of the enactment of this Act and any claims
made after such date of enactment.
SEC. 512. RISK TRANSFER REQUIREMENT.
Subsection (e) of section 1345 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended--
(1) by striking ``(e) Risk Transfer.--The
Administrator'' and inserting the following:
``(e) Risk Transfer.--
``(1) Authority.--The Administrator''; and
(2) by adding at the end the following new paragraph:
``(2) Required risk transfer coverage.--
``(A) Requirement.--Not later than the
expiration of the 18-month period beginning
upon the date of the enactment of this
paragraph and at all times thereafter, the
Administrator shall annually cede a portion of
the risk of the flood insurance program under
this title to the private reinsurance or
capital markets, or any combination thereof,
and at rates and terms that the Administrator
determines to be reasonable and appropriate, in
an amount that--
``(i) is sufficient to maintain the
ability of the program to pay claims;
and
``(ii) manages and limits the annual
exposure of the flood insurance program
to flood losses in accordance with the
probable maximum loss target
established for such year under
subparagraph (B).
``(B) Probable maximum loss target.--The
Administrator shall for each fiscal year,
establish a probable maximum loss target for
the national flood insurance program that shall
be the maximum probable loss under the national
flood insurance program that is expected to
occur in such fiscal year.
``(C) Considerations.--In establishing the
probable maximum loss target under subparagraph
(B) for each fiscal year and carrying out
subparagraph (A), the Administrator shall
consider--
``(i) the probable maximum loss
targets for other United States public
natural catastrophe insurance programs,
including as State wind pools and
earthquake programs;
``(ii) the probable maximum loss
targets of other risk management
organizations, including the Federal
National Mortgage Association and the
Federal Home Loan Mortgage Corporation;
``(iii) catastrophic, actuarial, and
other appropriate data modeling results
of the national flood insurance program
portfolio;
``(iv) the availability of funds in
the National Flood Insurance Fund
established under section 1310 (42
U.S.C. 4017);
``(v) the availability of funds in
the National Flood Insurance Reserve
Fund established under section 1310A
(42 U.S.C. 4017a);
``(vi) the availability of borrowing
authority under section 1309 (42 U.S.C.
4016);
``(vii) the ability of the
Administrator to repay outstanding
debt;
``(viii) amounts appropriated to the
Administrator to carry out the national
flood insurance program;
``(ix) reinsurance, capital markets,
catastrophe bonds, collateralized
reinsurance, resilience bonds, and
other insurance-linked securities, and
other risk transfer opportunities; and
``(x) any other factor the
Administrator determines appropriate.
``(D) Multi-year contracts.--Nothing in this
paragraph may be construed to prevent or
prohibit the Administrator from complying with
the requirement under subparagraph (A)
regarding ceding risk through contracts having
a duration longer than one year.''.
SEC. 513. GAO STUDY OF SIMPLIFICATION OF NATIONAL FLOOD INSURANCE
PROGRAM.
(a) Study.--The Comptroller General of the United States
shall conduct a study of options for simplifying flood
insurance coverage made available under the National Flood
Insurance Act, which shall include the following:
(1) An analysis of how the administration of the
National Flood Insurance Program can be simplified--
statutorily, regulatorily, and administratively--for
private flood insurance policyholders, companies,
agents, mortgage lenders, and flood insurance vendors.
(2) An assessment of ways in which flood insurance
coverage made available under the National Flood
Insurance Act and the program for providing and
administrating such coverage may be harmonized with
private insurance industry standards.
(3) Identification and analysis of ways in which the
structure of the National Flood Insurance Program may
be simplified, including analysis of the efficacy and
effects each of the following actions:
(A) Eliminating the use of two deductibles
under the Program.
(B) Including in claims for flood-damages
full replacement cost for property not damaged,
but rendered unusable, by the flooding.
(C) Using umbrella policies that allow
multiple structures on a property to be insured
under the same policy.
(b) Report.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
regarding the findings and conclusions of the study conducted
pursuant to this section.
SEC. 514. GAO STUDY ON ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.
(a) In General.--The Comptroller General of the United States
shall conduct a study of the implementation and efficacy of the
requirements of section 102 of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a). Such study shall at minimum
consider the following questions:
(1) How effectively do Federal agencies, regulated
lending institutions, and Federal entities for lending
regulation implement the requirements of section 102 of
the Flood Disaster Protection Act of 1973?
(2) Does the current implementation of Flood Disaster
Protection Act of 1973 align with the congressional
findings and purposes described in section 2(b) of such
Act (42 U.S.C. 4002)?
(3) What is the current level of compliance with
section 102?
(4) What are the estimated historical impacts on
revenue to the National Flood Insurance Program based
on the current level of compliance of section 102?
(5) Is the current monitoring and tracking framework
in place sufficient to ensure compliance with section
102?
(6) What is the best way to establish a consolidated,
comprehensive, and accurate repository of data on
compliance with section 102?
(7) What, if any, unintended consequences have
resulted from the requirements and implementation of
section 102?
(8) How can Federal agencies and regulated lending
institutions improve compliance with section 102?
(b) Report.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
regarding the findings and conclusions of the study conducted
pursuant to this section.
TITLE VI--ADMINISTRATIVE REFORMS
SEC. 601. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL
FLOOD INSURANCE PROGRAM.
Part C of chapter 2 of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new section:
``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL
FLOOD INSURANCE PROGRAM.
``(a) Prohibited Acts.--A person shall not knowingly make a
false or misleading statement, production, or submission in
connection with the proving or adjusting of a claim for flood
insurance coverage made available under this Act. Such
prohibited acts include--
``(1) knowingly forging an engineering report, claims
adjustment report or technical assistance report used
to support a claim determination;
``(2) knowingly making any materially false,
fictitious, or fraudulent statement or representation
in an engineering report, claims adjustment report, or
technical assistance report to support a claim
determination;
``(3) knowingly submitting a materially false,
fictitious, or fraudulent claim.
``(b) Civil Enforcement.--The Attorney General may bring a
civil action for such relief as may be appropriate whenever it
appears that any person has violated or is about to violate any
provision of this section. Such action may be brought in an
appropriate United States district court.
``(c) Referral to Attorney General.--The Administrator shall
expeditiously refer to the Attorney General for appropriate
action any evidence developed in the performance of functions
under this Act that may warrant consideration for criminal or
civil prosecution.
``(d) Penalties.--
``(1) Civil monetary penalty.--Any person who
violates subsection (a) shall be subject to a civil
penalty of not more than $10,000 for each violation,
which shall be deposited into the National Flood
Insurance Fund established under section 1310 (42
U.S.C. 4017).
``(2) Suspension and debarment.--Any person who
violates subsection (a) shall not be eligible, for a
period of not less than 2 years and not to exceed 5
years, to--
``(A) receive flood insurance coverage
pursuant to this title; or
``(B) provide services in connection with the
selling, servicing, or handling of claims for
flood insurance policies provided pursuant to
this title.
``(3) Other penalties.--The penalties provided for in
this subsection shall be in addition to any other civil
or criminal penalty available under law.''.
SEC. 602. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.
(a) Establishment.--Part C of chapter II of the National
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 1352. APPROVAL OF DECISIONS RELATING TO FLOOD INSURANCE
COVERAGE.
``(a) In General.--The Administrator shall establish an
appeals process to enable holders of a flood insurance policy
provided under this title to appeal the decisions of their
insurer, with respect to the disallowance, in whole or in part,
of any claims for proved and approved losses covered by flood
insurance. Such appeals shall be limited to the claim or
portion of the claim disallowed by the insurer.
``(b) Appeal Decision.--Upon a decision in an appeal under
subsection (a), the Administrator shall provide the
policyholder with a written appeal decision. The appeal
decision shall explain the Administrator's determination to
uphold or overturn the decision of the flood insurer. The
Administrator may direct the flood insurer to take action
necessary to resolve the appeal, to include re-inspection, re-
adjustment, or payment, as appropriate.
``(c) Rules of Construction.--This section shall not be
construed as--
``(1) making the Federal Emergency Management Agency
or the Administrator a party to the flood insurance
contract; or
``(2) creating any action or remedy not otherwise
provided by this title.''.
(b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is
hereby repealed.
SEC. 603. DEADLINE FOR APPROVAL OF CLAIMS.
(a) In General.--Section 1312 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4019), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new subsection:
``(d) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide
that, in the case of any claim for damage to or loss of
property under flood insurance coverage made available
under this title, a final determination regarding
approval of a claim for payment or disapproval of the
claim be made, and notification of such determination
be provided to the insured making such claim, not later
than the expiration of the 90-day period (as such
period may be extended pursuant to paragraph (2))
beginning upon the day on which such claim was made.
Payment of approved claims shall be made as soon as
possible after such approval.
``(2) Extension of deadline.--The Administrator shall
provide that the period referred to in paragraph (1)
may be extended by a single additional period of 15
days in cases where extraordinary circumstances are
demonstrated. The Administrator shall, by regulation,
establish criteria for demonstrating such extraordinary
circumstances and for determining to which claims such
extraordinary circumstances apply.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply to any claim under flood insurance coverage made
available under the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.) pending on the date of the enactment of
this Act and any claims made after such date of enactment.
SEC. 604. LITIGATION PROCESS OVERSIGHT AND REFORM.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new section:
``SEC. 1353. OVERSIGHT OF LITIGATION.
``(a) Oversight.--The Administrator shall monitor and oversee
litigation conducted by Write Your Own companies arising under
contracts for flood insurance sold pursuant to this title, to
ensure that--
``(1) litigation expenses are reasonable,
appropriate, and cost-effective; and
``(2) Write Your Own companies comply with guidance
and procedures established by the Administrator
regarding the conduct of litigation.
``(b) Denial of Reimbursement for Expenses.--The
Administrator may deny reimbursement for litigation expenses
that are determined to be unreasonable, excessive, contrary to
guidance issued by the Administrator, or outside the scope of
any arrangement entered into with a Write Your Own company.
``(c) Litigation Strategy.--The Administrator may direct
litigation strategy for claims arising under a contract for
flood insurance sold by a Write Your Own company.''.
SEC. 605. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new section:
``SEC. 1354. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
``The Administrator may not at any time newly employ in
connection with the flood insurance program under this title
any attorney who has been suspended or disbarred by any court,
bar, or Federal or State agency to which the individual was
previously admitted to practice.''.
SEC. 606. TECHNICAL ASSISTANCE REPORTS.
(a) Use.--Section 1312 of the National Flood Insurance Act of
1968 (42 U.S.C. 4019), as amended by the preceding provisions
of this Act, is further amended by adding at the end the
following new subsection:
``(e) Use of Technical Assistance Reports.--When adjusting
claims for any damage to or loss of property which is covered
by flood insurance made available under this title, the
Administrator may rely upon technical assistance reports, as
such term is defined in section 1312A, only if such reports are
final and are prepared in compliance with applicable State and
Federal laws regarding professional licensure and conduct.''.
(b) Disclosure.--The National Flood Insurance Act of 1968 is
amended by inserting after section 1312 (42 U.S.C. 4019) the
following new section:
``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.
``(a) In General.--Notwithstanding section 552a of title 5,
United States Code, upon request by a policyholder, the
Administrator shall provide a true, complete, and unredacted
copy of any technical assistance report that the Administrator
relied upon in adjusting and paying for any damage to or loss
of property insured by the policyholder and covered by flood
insurance made available under this title. Such disclosures
shall be in addition to any other right of disclosure otherwise
made available pursuant such section 552a or any other
provision of law.
``(b) Direct Disclosure by Write Your Own Companies and
Direct Servicing Agents.--A Write Your Own company or direct
servicing agent in possession of a technical assistance report
subject to disclosure under subsection (a) may disclose such
technical assistance report without further review or approval
by the Administrator.
``(c) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Policyholder.--The term `policyholder' means a
person or persons shown as an insured on the
declarations page of a policy for flood insurance
coverage sold pursuant to this title.
``(2) Technical assistance report.--The term
`technical assistance report' means a report created
for the purpose of furnishing technical assistance to
an insurance claims adjuster assigned by the National
Flood Insurance Program, including by engineers,
surveyors, salvors, architects, and certified public
accounts.''.
SEC. 607. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE
POLICIES.
Section 100234 of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4013a) is amended by adding at the end
the following new subsection:
``(c) Disclosure of Coverage.--
``(1) Disclosure sheet.--Each policy under the
National Flood Insurance Program shall include a
disclosure sheet that sets forth, in plain language--
``(A) the definition of the term `flood' for
purposes of coverage under the policy;
``(B) a description of what type of flood
forces are necessary so that losses from an
event are covered under the policy, including
overflow of inland or tidal waves, unusual and
rapid accumulation or runoff of a surface any
source, and mudflow;
``(C) a statement of the types and
characteristics of losses that are not covered
under the policy;
``(D) a summary of total cost and amount of
insurance coverage, and any other information
relating to such coverage required to be
disclosed under section 1308(l) of the National
Flood Insurance Act of 1968 (42 U.S.C.
4015(l));
``(E) a statement that the disclosure sheet
provides general information about the
policyholder's standard flood insurance policy;
``(F) a statement that the standard flood
insurance policy, together with the
application, endorsements, and declarations
page, make up the official contract and are
controlling in the event that there is any
difference between the information on the
disclosure sheet and the information in the
policy; and
``(G) a statement that if the policyholder
has any questions regarding information in the
disclosure sheet or policy he or she should
contact the entity selling the policy on behalf
of the Program, together with contact
information sufficient to allow the
policyholder to contact such entity.
``(2) Acknowledgment sheet.--Each policy under the
National Flood Insurance Program shall include an
acknowledgment sheet that sets forth, in plain
language--
``(A) a statement of whether or not there is
a basement in the property to be covered by the
policy;
``(B) a statement of whether or not the
policy provides coverage for the contents of
the property covered by the policy;
``(C) a statement that the standard flood
insurance policy, together with the
application, endorsements, and declarations
page, make up the official contract and are
controlling in the event that there is any
difference between the information on the
acknowledgment sheet and the information in the
policy; and
``(D) a statement that if the policyholder
has any questions regarding information in the
acknowledgment sheet or policy he or she should
contact the entity selling the policy on behalf
of the Program, together with contact
information sufficient to allow the
policyholder to contact such entity.
``(3) Required signatures.--Notwithstanding section
1306(c) of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(c)), a policy for flood insurance coverage
under the National Flood Insurance Program may not take
effect unless the disclosure sheet required under
paragraph (1) and the acknowledgment sheet required
under paragraph (2), with respect to the policy, are
signed and dated by the policyholder and the seller of
the policy who is acting on behalf of the Program.''.
SEC. 608. RESERVE FUND AMOUNTS.
Section 1310 of the National Flood Insurance Act of 1968 (42
U.S.C. 4017) is amended by adding at the end the following new
subsection:
``(g) Crediting of Reserve Fund Amounts.--Funds collected
pursuant to section 1310A may be credited to the Fund under
this section to be available for the purpose described in
subsection (d)(1).''.
SEC. 609. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE ADVOCATE.
(a) In General.--Section 24 of the Homeowner Flood Insurance
Affordability Act of 2014 (42 U.S.C. 4033) is amended by adding
at the end the following new subsection:
``(c) Staff.--The Administrator shall ensure that the Flood
Insurance Advocate has sufficient staff to carry out all of the
duties and responsibilities of the Advocate under this
section.''.
(b) Timing.--The Administrator of the Federal Emergency
Management Agency shall take such actions as may be necessary
to provide for full compliance with section 24(c) of the
Homeowner Flood Insurance Affordability Act of 2014, as added
by the amendment made by subsection (a) of this section, not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act.
SEC. 610. LIMITED EXEMPTION FOR DISASTER OR CATASTROPHE CLAIMS
ADJUSTERS.
Section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C.
207) is amended by adding at the end the following:
``(s)(1) The provisions of this section shall not apply for a
period of 2 years after the occurrence of a major disaster to
any employee--
``(A) employed to adjust or evaluate claims resulting
from or relating to such major disaster, by an employer
not engaged, directly or through an affiliate, in
underwriting, selling, or marketing property, casualty,
or liability insurance policies or contracts;
``(B) who receives from such employer on average
weekly compensation of not less than $591.00 per week
or any minimum weekly amount established by the
Secretary, whichever is greater, for the number of
weeks such employee is engaged in any of the activities
described in subparagraph (C); and
``(C) whose duties include any of the following:
``(i) interviewing insured individuals,
individuals who suffered injuries or other
damages or losses arising from or relating to a
disaster, witnesses, or physicians;
``(ii) inspecting property damage or
reviewing factual information to prepare damage
estimates;
``(iii) evaluating and making recommendations
regarding coverage or compensability of claims
or determining liability or value aspects of
claims;
``(iv) negotiating settlements; or
``(v) making recommendations regarding
litigation.
``(2) Notwithstanding any other provision of section 18, in
the event of a major disaster, this Act exclusively shall
govern all such employers in lieu of any State or other Federal
law or regulation or local law or regulation, with respect to
the employees described in paragraph (1).
``(3) The exemption in this subsection shall not affect the
exemption provided by section 13(a)(1).
``(4) For purposes of this subsection--
``(A) the term `major disaster' means any natural
catastrophe, including any hurricane, tornado, storm,
high water, wind driven water, tidal wave, tsunami,
earthquake, volcanic eruption, landslide, mudslide,
snowstorm, or drought, or, regardless of cause, any
other catastrophe, including fire, flood, explosion,
land collapse, avalanche, or pollutant or chemical
release;
``(B) the term `employee employed to adjust or
evaluate claims resulting from or relating to such
major disaster' means an individual who timely secured
or secures a license required by applicable law to
engage in and perform the activities described in
clauses (i) through (v) of paragraph (1)(C) relating to
a major disaster, and is employed by an employer that
maintains worker compensation insurance coverage or
protection for its employees, if required by applicable
law, and withholds applicable Federal, State, and local
income and payroll taxes from the wages, salaries and
any benefits of such employees; and
``(C) the term `affiliate' means a company that, by
reason of ownership or control of twenty-five percent
(25%) or more of the outstanding shares of any class of
voting securities of one or more companies, directly or
indirectly, controls, is controlled by, or is under
common control with, another company.''.
PART B--TEXT OF AMENDMENT TO H.R. 2874 CONSIDERED AS ADOPTED
Page 56, line 9, strike ``The'' and insert ``Effective on
January 1, 2019, the''.
Page 59, line 14, strike ``The'' and insert ``Effective on
January 1, 2019, the''.
Strike line 18 on page 123 and all that follows through page
125, line 6.
Page 151, lines 2 and 3, strike ``application,
endorsements,'' and insert ``endorsements''.
Page 152, lines 2 and 3, strike ``application,
endorsements,'' and insert ``endorsements''.
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