[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2187 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2187
To reauthorize the National Flood Insurance Program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 18, 2019
Mr. Menendez (for himself, Mr. Cassidy, Mr. Schumer, Mrs. Hyde-Smith,
Mrs. Gillibrand, Mr. Kennedy, Mr. Reed, Mr. Rubio, Mr. Booker, Ms.
Warren, and Mr. Van Hollen) introduced the following bill; which was
read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To reauthorize the National Flood Insurance Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Flood Insurance Program
Reauthorization and Reform Act of 2019''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Reauthorization.
Sec. 102. Cap on annual premium increases.
Sec. 103. Means tested affordability voucher.
Sec. 104. Optional monthly installment premium payment plans.
Sec. 105. Study on business interruption coverage.
Sec. 106. Cooperative coverage fairness.
Sec. 107. Coverage limits.
Sec. 108. Study on participation rates.
TITLE II--MITIGATION AND MAPPING
Sec. 201. Mitigation for high-risk properties.
Sec. 202. Increased cost of compliance coverage.
Sec. 203. Flood mitigation assistance grants.
Sec. 204. Urban mitigation opportunities.
Sec. 205. Community Rating System Regional Coordinator.
Sec. 206. Mitigation loan program.
Sec. 207. Revolving loan funds.
Sec. 208. Mapping modernization.
Sec. 209. Protected areas.
Sec. 210. Community-wide flood mitigation activities.
TITLE III--SOLVENCY
Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Taxpayer protection.
Sec. 304. Vendor costs; transparency.
Sec. 305. Availability of NFIP claims data.
Sec. 306. Refusal of mitigation assistance.
TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS
Sec. 401. Earth movement fix and engineer standards.
Sec. 402. Coverage of pre-FIRM condominium basements and study on
street raising.
Sec. 403. Guidance on remediation and policyholder duties.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments and overpayments by Write
Your Own companies.
Sec. 406. Policyholders' right to know.
Sec. 407. Increasing statute of limitations for lawsuits.
Sec. 408. Authority to terminate contractors and vendors.
Sec. 409. Easing proof of loss requirements.
Sec. 410. Deadline for claim processing.
Sec. 411. No manipulation of engineer reports.
Sec. 412. Improved training of floodplain managers, agents, and
adjusters.
Sec. 413. Attorney fee shifting.
Sec. 414. DOJ defense against policyholder lawsuits.
Sec. 415. Pilot program for pre-existing structural conditions.
Sec. 416. Agent Advisory Council.
Sec. 417. Disclosure of flood risk information upon transfer of
property.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) 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.).
(3) National flood insurance program.--The term ``National
Flood Insurance Program'' means the program established under
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
(4) National flood mitigation fund.--The term ``National
Flood Mitigation Fund'' means the fund established under
section 1367 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104d).
(5) Write your own company.--The term ``Write Your Own
Company'' means a private property insurance company that
participates in the Write Your Own Program.
(6) Write your own program.--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--
(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
(B) adjust and pay claims arising under the
contracts described in subparagraph (A).
TITLE I--REAUTHORIZATION AND AFFORDABILITY
SEC. 101. REAUTHORIZATION.
(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,
2019'' and inserting ``September 30, 2024''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2019'' and inserting ``September 30, 2024''.
(c) Program Continuation.--
(1) In general.--Section 1310 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017) is amended by adding at
the end the following:
``(g) Amounts in the National Flood Insurance Reserve Fund
established under section 1310A may be credited to the National Flood
Insurance Fund to enter into, and renew, contracts for flood insurance
under this title during any lapse in appropriations.''.
(2) Technical and conforming amendments.--Section
1310A(a)(2) of the National Flood Insurance Act of 1968 (42
U.S.C. 4017A(a)(2)) is amended--
(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:
``(D) for the purpose described in section
1310(g).''.
SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.
(a) Definition.--In this section, the term ``covered cost'' means--
(1) the amount of an annual premium with respect to any
policy for flood insurance under the National Flood Insurance
Program;
(2) any surcharge imposed with respect to a policy
described in paragraph (1), including a surcharge imposed
under--
(A) section 1304(b) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011(b)); or
(B) section 1308A(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015a(a)); and
(3) a fee described in paragraph (1)(B)(iii) or (2) of
section 1307(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4014(a)).
(b) Limitation on Increases.--During the 5-year period beginning on
the date of enactment of this Act, and notwithstanding section 1308(e)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), the
Administrator may not, in any year, increase the amount of any covered
cost by an amount that is more than 9 percent, as compared with the
amount of the covered cost during the previous year.
(c) Rule of Construction.--Nothing in subsection (b) may be
construed as prohibiting the Administrator from reducing, in any year,
the amount of any covered cost, as compared with the amount of the
covered cost during the previous year.
(d) Average Historical Loss Year.--Section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking
subsection (h) and inserting the following:
``(h) Rule of Construction.--For purposes of this section, the
calculation of an `average historical loss year' shall be computed in
accordance with generally accepted actuarial principles.''.
(e) Disclosure With Respect to the Affordability Standard.--Section
1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j))
is amended, in the second sentence, by inserting ``and shall include in
the report the number of those exceptions as of the date on which the
Administrator submits the report and the location of each policyholder
insured under those exceptions, organized by county and State'' after
``of the Senate''.
SEC. 103. MEANS TESTED AFFORDABILITY VOUCHER.
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:
``SEC. 1326. AFFORDABILITY ASSISTANCE.
``(a) Affordability Assistance Fund.--
``(1) Establishment.--The Administrator shall establish in
the Treasury of the United States an Affordability Assistance
Fund (referred to in this section as the `Fund'), which shall
be--
``(A) an account separate from any other accounts
or funds available to the Administrator; and
``(B) available without fiscal year limitation.
``(2) Use of funds.--Amounts from the Fund shall be
available to provide financial assistance under subsection (b).
``(3) Source of funds.--The Fund shall be credited with the
amounts saved as a direct result of the limitation imposed
under section 1311(b).
``(b) Financial Assistance.--
``(1) Definitions.--In this subsection--
``(A) the term `adjusted gross income' has the
meaning given the term in section 62 of the Internal
Revenue Code of 1986;
``(B) the term `eligible household' means a
household for which--
``(i) housing expenses exceed 30 percent of
the adjusted gross income of the household in a
year; and
``(ii)(I) the total assets owned by the
household are in an amount that is not greater
than 220 percent of the median household income
for the State in which the household is
located; or
``(II) with respect to a household that has
a total household income that is not greater
than 120 percent of the area median income for
the area in which the household is located, the
amount of premiums, surcharges, and fees for a
flood insurance policy provided under this
title in a year for the household exceeds 1
percent of the coverage limit of that policy
under section 1306(b); and
``(C) the term `housing expenses' means, with
respect to a household, the total amount that the
household spends in a year on--
``(i) mortgage payments;
``(ii) property taxes;
``(iii) homeowners insurance; and
``(iv) premiums for flood insurance under
the national flood insurance program.
``(2) Authority.--
``(A) Other financial assistance.--The
Administrator shall provide a voucher, grant, or
premium credit to an eligible household for a year in
an amount that, subject to subparagraph (B), is equal
to the lesser of--
``(i) the difference between--
``(I) the housing expenses of the
household for the year; and
``(II) 30 percent of the adjusted
gross income of the household for the
year; and
``(ii) the cost of premiums for the
household for flood insurance under the
national flood insurance program for the year.
``(B) Reduction.--The amount of the assistance
provided under subparagraph (A) to an eligible
household shall be reduced by 1 percent for each
percent that the income of the eligible household
exceeds 120 percent of the median household income for
the State in which the property that is the subject of
the assistance is located.
``(3) Relationships with other agencies.--The Administrator
may enter into a memorandum of understanding with the head of
any other Federal agency to administer the paragraph (2)(A).''.
SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM PAYMENT PLANS.
Section 1308(g) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(g)) is amended--
(1) by striking ``With respect to'' and inserting the
following:
``(1) Annual or monthly option.--Subject to paragraph (2),
with respect to''; and
(2) by adding at the end the following:
``(2) Monthly installment.--With respect to a policyholder
that opts under paragraph (1) to pay premiums on a monthly
basis, the Administrator may charge the policyholder an annual
fee of not more than $15.
``(3) Exemption from rule making; pilot program.--During
the period beginning on the date of enactment of this paragraph
and ending on the date on which the Administrator promulgates
regulations carrying out paragraph (1), the Administrator may,
notwithstanding any other provision of law--
``(A) adopt policies and procedures to carry out
that paragraph without--
``(i) undergoing notice and comment rule
making under section 553 of title 5, United
States Code; or
``(ii) conducting regulatory analyses
otherwise required by statute, regulation, or
Executive order; or
``(B) carry out that paragraph by establishing a
pilot program that gradually implements the
requirements of that paragraph.''.
SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE.
(a) In General.--The Administrator shall conduct a study on the
feasibility and soundness of offering coverage for interruption
business losses caused by a flood under the National Flood Insurance
Program (referred to in this section as ``business interruption
coverage'').
(b) Contents.--In conducting the study under subsection (a), the
Administrator shall, at a minimum--
(1) evaluate insurance industry best practices for offering
business interruption coverage, including the types of coverage
provided and the utilization rate;
(2) estimate the potential risk premium rates for business
interruption coverage based on the flood risk reflected in the
flood insurance rate map or other risk metrics in effect at the
time of purchase;
(3) analyze the operational and administrative expenses
associated with providing business interruption coverage and
adjusting claims;
(4) identify potential obstacles that may prevent the
Administrator from offering business interruption coverage;
(5) evaluate the benefits of providing business
interruption coverage;
(6) analyze any potential impacts on the financial position
of the National Flood Insurance Program; and
(7) develop a feasibility implementation plan and projected
timelines for offering business interruption coverage.
(c) Availability of Experts.--In conducting the study under
subsection (a), the Administrator may accept and utilize the personnel
and services of any other Federal agency, and appoint and fix the
compensation of temporary personnel without regard to the provisions of
title 5, United States Code, governing appointments in the competitive
service, or employ experts and consultants in accordance with the
provisions of section 3109 of such title, without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates.
(d) Deadline.--The Administrator shall complete the study required
under subsection (a) not later than September 30 of the second full
fiscal year after the date of enactment of this Act.
SEC. 106. COOPERATIVE COVERAGE FAIRNESS.
(a) In General.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended by adding at the end the following:
``(e) Cooperatives.--
``(1) Definition.--In this subsection, the term
`cooperative building' has the meaning given the term in
section 1312(d).
``(2) Equal treatment with condominiums.--Notwithstanding
any other provision of law, an owner of a share of a
cooperative building shall be eligible to purchase flood
insurance coverage under the national flood insurance program
on the same terms as a condominium owner.''.
(b) Payment of Claims.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019) is amended--
(1) in subsection (c)--
(A) in the subsection heading, by inserting ``and
Cooperative'' after ``Condominium'';
(B) by inserting ``or owners of a share of a
cooperative building'' after ``condominium owners'';
and
(C) by inserting ``or cooperative association''
after ``condominium association'' each place that term
appears; and
(2) by adding at the end the following:
``(d) Definitions.--In this section, the terms `cooperative
association' and `cooperative building' have the meanings given the
terms by the Administrator.''.
SEC. 107. COVERAGE LIMITS.
(a) In General.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``In addition to any other terms and
conditions under subsection (a), such regulations'' and
inserting ``The Administrator'';
(B) in paragraph (2)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$250,000'' and inserting
``the baseline amount'';
(C) in paragraph (3)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$100,000'' and inserting
``50 percent of the baseline amount''; and
(D) in paragraph (4)--
(i) by striking ``shall be made'' each
place that term appears and inserting ``may be
made''; and
(ii) by striking ``$500,000'' each place
that term appears and inserting ``200 percent
of the baseline amount''; and
(2) by adding at the end the following:
``(f) Definition.--
``(1) In general.--Subject to paragraph (2), in this
section, the term `baseline amount', with respect to a
property, means the maximum original principal obligation of a
conventional mortgage that may be purchased by the Federal
National Mortgage Association in the area in which the property
as located, as established under section 302(b)(2) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)).
``(2) Clarification.--If, after the date of enactment of
this subsection, the baseline amount, as defined in paragraph
(1), decreases as compared with the baseline amount in effect
on the day before the date of enactment of this subsection, the
baseline amount that was in effect on the day before the date
of enactment of this subsection shall be deemed to be the
baseline amount for the purposes of paragraphs (2), (3), and
(4) of subsection (b).''.
(b) Authority of Administrator To Sell Policies.--The Administrator
may sell a policy for flood insurance under the National Flood
Insurance Program that meets the requirements of paragraphs (2), (3),
and (4) of section 1306(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
(1) section 61.6 of title 44, Code of Federal Regulations,
as in effect on the day before the date of enactment of this
Act; or
(2) any other provision of law.
SEC. 108. STUDY ON PARTICIPATION RATES.
(a) Definitions.--In this section--
(1) the term ``500-year floodplain'' has the meaning given
the term in section 100202(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
(2) the terms ``Federal agency lender'', ``improved real
estate'', and ``regulated lending institution'' have the
meanings given those terms in section 3(a) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and
(3) the term ``property with a Federally backed mortgage''
means improved real estate or a mobile home securing a loan
that was--
(A) made by a regulated lending institution or
Federal agency lender; or
(B) purchased by the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation.
(b) Study.--The Comptroller General of the United States shall
conduct a study that proposes to address, through programmatic and
regulatory changes, how to increase the rate at which properties in the
United States are covered by flood insurance.
(c) Considerations.--In conducting the study required under
subsection (b), the Comptroller General of the United States shall--
(1) consider--
(A) expanding participation in the National Flood
Insurance Program beyond areas having special flood
hazards to areas of moderate or minimum risk with
respect to flooding;
(B) automatically enrolling consumers in the
National Flood Insurance Program and providing those
consumers with the opportunity to decline such
enrollment; and
(C) bundling flood insurance coverage that
diversifies risk across all or multiple forms of peril;
and
(2) determine--
(A) the percentage of properties with Federally
backed mortgages located in an area having special
flood hazards that are covered by flood insurance that
satisfies the requirement under section 102(b) of the
Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(b)); and
(B) the percentage of properties with Federally
backed mortgages located in the 500-year floodplain
that are covered by flood insurance that would satisfy
the requirement described in subparagraph (A) if that
requirement applied to such properties.
(d) Report.--Not later than 18 months after the date of enactment
of this Act, the Comptroller General of the United States shall submit
to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives
a report regarding the results of the study conducted under subsection
(b).
TITLE II--MITIGATION AND MAPPING
SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES.
(a) In General.--Section 203 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by
adding at the end the following:
``(n) Flood Mitigation Activities.--The President shall set aside
from the Disaster Relief Fund an amount equal to 10 percent of the
average amount appropriated to the Fund during the preceding 10 fiscal
years to provide assistance for mitigation activities under section
1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c)
for--
``(1) severe repetitive loss structures; and
``(2) properties insured under the national flood insurance
program with the largest increase in the actuarial risk for the
property compared to the actuarial risk for the previous fiscal
year as a result of Risk Rating 2.0, as in effect on October 1,
2020.''.
(b) Applicability.--The amendment made to section 203 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5133) by subsection (a) shall apply to funds appropriated on or after
the date of enactment of this Act.
(c) Technical and Conforming Amendment.--Effective on October 5,
2023, section 203 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating
subsection (n), as added by subsection (a) of this section, as
subsection (m).
SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE.
Section 1304(b) 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
adjusting the margins accordingly;
(2) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and adjusting the
margins accordingly;
(3) in subparagraph (C), as so redesignated, by striking
the period at the end and inserting a semicolon;
(4) by redesignating paragraph (4) as subparagraph (F), and
adjusting the margins accordingly;
(5) by inserting after subparagraph (C), as so
redesignated, the following:
``(D) properties identified by the Administrator as
priorities for mitigation activities before the
occurrence of damage to or loss of property which is
covered by flood insurance;
``(E) properties outside an area having special
flood hazards if the communities in which the
properties are located have, under section 1361,
established land use and control measures for the areas
in which the properties are located; and'';
(6) by inserting before ``The national flood insurance
program'' the following: ``(1) In general.--'';
(7) in the flush text following subparagraph (F)(iv), by
striking ``The Administrator'' and inserting the following:
``(2) Premium.--The Administrator''; and
(8) by adding at the end the following:
``(3) Amount of 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
$60,000.
``(4) Eligible Mitigation Activities.--
``(A) In general.--Eligible mitigation methods the cost of
which is covered by coverage provided under this subsection
shall include--
``(i) alternative methods of mitigation identified
in the guidelines issued pursuant to section 1361(d);
``(ii) pre-disaster mitigation projects for
eligible structures; and
``(iii) costs associated with the purchase,
clearing, and stabilization of property that is part of
an acquisition or relocation project that complies with
subparagraph (B).
``(B) Acquisition and relocation project eligibility and
requirements.--
``(i) In general.--An acquisition or relocation
project shall be eligible to receive assistance
pursuant to subparagraph (A)(iii) only if--
``(I) any property acquired, accepted, or
from which a structure will be removed shall be
dedicated and maintained in perpetuity for a
use that is compatible with open space,
recreational, or wetland and natural floodplain
management practices; and
``(II) any new structure erected on such
property will be--
``(aa) a public facility that is
open on all sides and functionally
related to a designated open space;
``(bb) a restroom; or
``(cc) a structure that the
Administrator approves in writing
before the commencement of the
construction of the structure.
``(ii) Further assistance.--If an acquisition or
relocation project is assisted pursuant to subparagraph
(A)(iii)--
``(I) no person may apply to a Federal
entity for disaster assistance with regard to
any property acquired, accepted, or from which
a structure was removed as part of such
acquisition or relocation project; and
``(II) no Federal entity may provide
disaster assistance for such property.
``(iii) Requirement to maintain flood insurance
coverage.--
``(I) In general.--Notwithstanding any
other provision of law, any assisted structure
shall, at all times, maintain insurance against
flood damage, in accordance with Federal law,
for the life of such structure.
``(II) Transfer of property.--
``(aa) Duty to notify.--If any part
of a property on which an assisted
structure is located is transferred,
the transferor shall, not later than
the date on which such transfer occurs,
notify the transferee in writing,
including in all documents evidencing
the transfer of ownership of the
property, that such transferee is
required to--
``(AA) obtain flood
insurance in accordance with
applicable Federal law with
respect to such assisted
structure, if such structure is
not so insured on the date on
which the structure is
transferred; and
``(BB) maintain flood
insurance in accordance with
applicable Federal law with
respect to such structure.
``(bb) Failure to notify.--If a
transferor fails to make a notification
in accordance with item (aa) and such
assisted structure is damaged by a
flood disaster, the transferor shall
pay the Federal Government an amount
equal to the amount of any disaster
relief provided by the Federal
Government with respect to such
assisted structure.
``(III) Assisted structure defined.--For
the purposes of this clause, the term `assisted
structure' means a structure on property that
is part of an acquisition or relocation project
assisted pursuant to subparagraph (A) that was,
as part of such acquisition or relocation
project--
``(aa) altered;
``(bb) improved;
``(cc) replaced;
``(dd) repaired; or
``(ee) restored.
``(C) Eligible structure defined.--For purposes of this
paragraph, the term `eligible structure' means any structure
that--
``(i) was constructed in compliance with the Flood
Insurance Rate Map and local building and zoning codes
in effect on the date of construction of the structure;
and
``(ii) has not previously been altered, improved,
replaced, or repaired using assistance provided under
this subsection.
``(5) Treatment of Coverage Limits.--Any amount of coverage
provided for a property pursuant to this subsection shall not be
considered or counted for purposes of any limitation on coverage
applicable to such property under section 1306(b) and any claim on such
coverage shall not be considered a claim for purposes of section
1307(h) or subsection (a)(3) or (h)(3) of section 1366.
``(6) Implementation.--Notwithstanding any other provision of law,
the Administrator may implement this subsection by adopting 1 or more
standard endorsements to the Standard Flood Insurance Policy by
publication of such standards in the Federal Register, or by comparable
means.''.
SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS.
(a) Flood Mitigation Assistance Grant Program Priority.--Section
1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), respectively, and
adjusting the margins accordingly;
(B) in the second sentence of the matter preceding
subparagraph (A), as so redesignated, by striking
``assistance shall be'' and inserting the following:
``assistance shall--
``(1) be'';
(C) in paragraph (1)(C), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(D) by adding at the end the following:
``(2) in addition to the requirement under paragraph
(1)(C), give priority to properties--
``(A) that are repetitive loss structures;
``(B) with respect to which the Administrator makes
a determination that the premium rates with respect to
a policy for flood insurance coverage under this
title--
``(i) are unaffordable; or
``(ii) will soon become unaffordable as a
result of a risk adjustment under Risk Rating
2.0, as in effect on the date of that
determination; and
``(C) for which aggregate losses exceed the
replacement value of the properties.''; and
(2) in subsection (h), by adding at the end the following:
``(4) Unaffordable.--The term `unaffordable' means, with
respect to the premium rates for a policy for flood insurance
coverage under this title, that, in a year, those rates are in
an such an amount that the housing expenses (as defined in
section 1326(b)(1)) of the household that is the subject of the
policy are, for that year, more than 30 percent of the adjusted
gross income (as defined in section 1326(b)(1)) of the
household for that year.''.
(b) Additional Mitigation Assistance.--
(1) Appropriations from general fund of treasury.--For each
of the first 5 full fiscal years after the date of enactment of
this Act, there is authorized to be appropriated $1,000,000,000
to the National Flood Mitigation Fund to provide mitigation
assistance under this subsection.
(2) Rule of construction.--The authorization of
appropriations under subparagraph (A) shall not be construed to
authorize the transfer or crediting to the National Flood
Mitigation Fund of any amounts from the National Flood
Insurance Fund.
SEC. 204. URBAN MITIGATION OPPORTUNITIES.
(a) Mitigation Strategies.--Section 1361(d)(1) 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:
``(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.--Section 1308(k) 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
``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(2) offer a reduction of the risk premium rate charged to
a policyholder in an amount that is not less than 10 percent of
that rate if the policyholder implements any mitigation method
described in paragraph (1).''.
SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDINATOR.
Section 1315(b) of the National Flood Insurance Act of 1968 (42
U.S.C. 4022(b)) is amended by adding at the end the following:
``(5) Regional coordinator.--
``(A) In general.--The Administrator shall appoint
a regional coordinator in each region served by a
Regional Office (as defined in section 501 of the
Homeland Security Act of 2002 (6 U.S.C. 311)) to
provide technical assistance to small communities to
enable those communities to effectively participate in
and benefit from the community rating system program.
``(B) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this paragraph, which shall
remain available until expended.''.
SEC. 206. MITIGATION LOAN PROGRAM.
(a) Definition.--In this section, the term ``mitigation measure''
means, with respect to a structure, a measure undertaken to reduce the
risk of flood damage to the structure.
(b) Establishment.--The Administrator may establish a pilot program
through which the Administrator may provide low-interest loans to
policyholders under the National Flood Insurance Program for the
purposes described in subsection (c).
(c) Purposes of Loans.--A loan provided to a policyholder under the
pilot program established under subsection (b) shall be used to
undertake mitigation measures with respect to the insured property that
cost less than the cost of the estimated amount of premiums that would
be paid with respect to the property during the 50-year period
beginning in the year in which the loan is made and if those mitigation
measures were not undertaken.
(d) Sale of Property.--If a property with respect to which a loan
has been made under this section is sold, upon that sale, the
outstanding loan balance shall--
(1) be repaid using the proceeds of the sale; or
(2) carry over to the purchaser of the property if the
purchaser so consents before the execution of the sale.
SEC. 207. REVOLVING LOAN FUNDS.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.), as amended by section 103, is amended by
adding at the end the following:
``SEC. 1327. STATE REVOLVING LOAN FUNDS FOR FLOOD MITIGATION.
``(a) Definitions.--In this section:
``(1) Community rating system.--The term `Community Rating
System' means the community rating system program carried out
under section 1315(b).
``(2) Eligible state.--The term `eligible State' means a
State, the District of Columbia, and the Commonwealth of Puerto
Rico.
``(3) Insular area.--The term `insular area' means--
``(A) Guam;
``(B) American Samoa;
``(C) the Commonwealth of the Northern Mariana
Islands;
``(D) the Federated States of Micronesia;
``(E) the Republic of the Marshall Islands;
``(F) the Republic of Palau; and
``(G) the United States Virgin Islands.
``(4) Intended use plan.--The term `intended use plan'
means a plan prepared under subsection (d)(1).
``(5) Low-income geographic area.--The term `low-income
geographic area' means an area described in paragraph (1) or
(2) of section 301(a) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3161(a)).
``(6) Low-income homeowner.--The term `low-income
homeowner' means the owner of a primary residence, the
household income of which in a taxable year is not more than 80
percent of the median income for the area in which the
residence is located.
``(7) Participating state.--The term `participating State'
means an eligible State that--
``(A) has entered into an agreement under
subsection (b)(1); and
``(B) agrees to comply with the requirements of
this section.
``(8) Pre-FIRM building.--The term `pre-FIRM building'
means a building for which construction or substantial
improvement occurred before the effective date of the initial
Flood Insurance Rate Map published by the Administrator under
section 1360 for the area in which the building is located.
``(9) Repetitive loss structure.--The term `repetitive loss
structure' has the meaning given the term in section 1370(a).
``(10) Severe repetitive loss property.--The term `severe
repetitive loss property' has the meaning given the term in
section 1307(h).
``(11) State loan fund.--The term `State loan fund' means a
flood mitigation assistance revolving loan fund established by
an eligible State under this section.
``(12) Tribal government.--The term `tribal government'
means the recognized government of an Indian tribe, or the
governing body of an Alaska Native regional or village
corporation, that has been determined eligible to receive
services from the Bureau of Indian Affairs.
``(b) General Authority.--
``(1) In general.--The Administrator may enter into an
agreement with an eligible State to provide a capitalization
grant for the eligible State to establish a revolving fund that
will provide funding assistance to help homeowners, businesses,
nonprofit organizations, and communities reduce flood risk in
order to decrease--
``(A) the loss of life and property;
``(B) the cost of flood insurance; and
``(C) Federal disaster payments.
``(2) Timing of deposit and agreements for distribution of
funds.--
``(A) In general.--Not later than the last day of
the fiscal year following the fiscal year in which a
capitalization grant is made to a participating State
under paragraph (1), the participating State shall--
``(i) deposit the grant in the State loan
fund of the State; and
``(ii) enter into 1 or more binding
agreements that provide for the State to
distribute the grant funds for purposes
authorized under subsection (c) such that--
``(I) in the case of the initial
grant made to a State under this
section, not less than 75 percent of
the amount of the grant shall be
distributed before the end of the 2-
year period beginning on the date on
which the funds are deposited in the
State loan fund of the State; and
``(II) in the case of any
subsequent grant made to a State under
this section, not less than 90 percent
of the amount of the grant shall be
distributed before the end of the 1-
year period beginning on the date on
which the funds are deposited in the
State loan fund of the State.
``(B) Noncompliance.--Except as provided in
subparagraph (C), if a participating State does not
comply with subparagraph (A) with respect to a grant,
the Administrator shall reallocate the grant in
accordance with paragraph (3)(B).
``(C) Exception.--The Administrator may not
reallocate any funds under subparagraph (B) to a
participating State that violated subparagraph (A) with
respect to a grant made during the same fiscal year in
which the funds to be reallocated were originally made
available.
``(3) Allocation.--
``(A) In general.--The Administrator shall allocate
amounts made available to carry out this section to
participating States--
``(i) for the participating States to
deposit in the State loan funds established by
the participating States; and
``(ii) except as provided in paragraph (6),
in accordance with the requirements described
in subparagraph (B).
``(B) Requirements.--The requirements described in
this subparagraph are as follows:
``(i) Fifty percent of the total amount
made available under subparagraph (A) shall be
allocated so that each participating State
receives the percentage amount that is obtained
by dividing the number of properties that were
insured under the national flood insurance
program in that State in the fiscal year
preceding the fiscal year in which the amount
is allocated by the total number of properties
that were insured under the national flood
insurance program in the fiscal year preceding
the fiscal year in which the amount is
allocated.
``(ii) Fifty percent of the total amount
made available under subparagraph (A) shall be
allocated so that each participating State
receives a percentage of funds that is equal to
the product obtained under clause (iii)(IV)
with respect to that participating State after
following the procedures described in clause
(iii).
``(iii) The procedures described in this
clause are as follows:
``(I) Divide the total amount
collected in premiums for properties
insured under the national flood
insurance program in each participating
State during the previous fiscal year
by the number of properties insured
under the national flood insurance
program in that State for that fiscal
year.
``(II) Add together each quotient
obtained under subclause (I).
``(III) For each participating
State, divide the quotient obtained
under subclause (I) with respect to
that State by the sum obtained under
subclause (II).
``(IV) For each participating
State, multiply the amount that is 50
percent of the total amount made
available under subparagraph (A) by the
quotient obtained under subclause
(III).
``(iv) Except as provided in paragraph (5),
in a fiscal year--
``(I) a participating State may not
receive more than 15 percent of the
total amount that is made available
under subparagraph (A) in that fiscal
year; and
``(II) if a participating State,
based on the requirements under clauses
(i) through (iii), would, but for the
limitation under subclause (I) of this
clause, receive an amount that is
greater than the amount that the State
is authorized to receive under that
subclause, the difference between the
authorized amount and the amount
otherwise due to the State under
clauses (i) through (iii) shall be
allocated to other participating
States--
``(aa) that, in that fiscal
year, have not received an
amount under subparagraph (A)
that is more than the
authorized amount under
subclause (I) of this clause;
and
``(bb) by using the
requirements under clauses (i)
through (iii), except that a
participating State may receive
an allocation under this
subclause only if the
allocation does not result in
the State receiving a total
amount for the fiscal year
under subparagraph (A) that is
greater than the authorized
amount under subclause (I).
``(4) No revolving fund required.--
``(A) In general.--Notwithstanding any other
provision of this section, and subject to subparagraph
(B), a participating State that receives less than
$4,000,000 under paragraph (3)(B) in a fiscal year may
distribute the funds directly in the form of grants or
technical assistance for a purpose described in
subsection (c)(2), without regard to whether the State
has established a State loan fund.
``(B) State matching.--A participating State that
exercises the authority under subparagraph (A) in a
fiscal year shall provide matching funds from non-
Federal sources in an amount that is equal to 25
percent of the amount that the State receives under
paragraph (3)(B) in that fiscal year for purposes
described in subparagraph (A).
``(5) Allocation of remaining funds.--After allocating
amounts made available to carry out this section for a fiscal
year in accordance with paragraph (3), the Administrator shall
allocate any remaining amounts made available for that fiscal
year to participating States, using the procedures described in
clauses (i) through (iii) of paragraph (3)(B).
``(6) Reservation of funds.--The Administrator shall
reserve not more than 1.5 percent of the amount made available
to carry out this section in a fiscal year--
``(A) for administrative costs incurred in carrying
out this section;
``(B) to provide technical assistance to recipients
of grants under this section; and
``(C) to enter into grant agreements with tribal
governments and insular areas, with the grant funds to
be distributed--
``(i) according to criteria established by
the Administrator; and
``(ii) for a purpose described in
subsection (c)(2).
``(c) Use of Funds.--
``(1) In general.--Amounts deposited in a State loan fund,
including repayments of loans made from the fund and interest
earned on the amounts in the fund, shall be used--
``(A) consistent with paragraph (2) and subsection
(g), to provide financial assistance for--
``(i) homeowners, businesses, and nonprofit
organizations that are eligible to participate
in the national flood insurance program; and
``(ii) any local government that
participates in the national flood insurance
program;
``(B) as a source of revenue and security for
leveraged loans, the proceeds of which shall be
deposited in the State loan fund; or
``(C) for the sale of bonds as security for payment
of the principal and interest on revenue or general
obligation bonds issued by the participating State to
provide matching funds under subsection (f), if the
proceeds from the sale of the bonds are deposited in
the State loan fund.
``(2) Purposes.--A recipient of financial assistance
provided through amounts from a State loan fund--
``(A) shall use the amounts to reduce--
``(i) flood risk; or
``(ii) potential claims for losses covered
under the national flood insurance program;
``(B) shall use the amounts in a cost-effective
manner under requirements established by the State,
which may require an applicant for financial assistance
to submit any information that the State considers
relevant or necessary before the date on which the
applicant receives the assistance;
``(C) shall use the amounts for projects that--
``(i) meet design and construction
standards established by the Administrator;
``(ii) are located in communities that--
``(I) participate in the national
flood insurance program; and
``(II) have developed a State or
community flood risk mitigation plan
that has been approved by the
Administrator under section 1366;
``(iii) address--
``(I) a repetitive loss structure
or a severe repetitive loss property;
or
``(II) flood risk in the 500-year
floodplain, areas of residual flood
risk, or other areas of potential flood
risk, as identified by the
Administrator; and
``(iv) address current risk and anticipate
future risk, such as sea-level rise;
``(D) may use the amounts--
``(i) for projects relating to--
``(I) structural elevation;
``(II) floodproofing;
``(III) the relocation or removal
of buildings from the 100-year
floodplain or other areas of flood
risk, including the acquisition of
properties for such a purpose;
``(IV) environmental restoration
activities that directly reduce flood
risk;
``(V) any eligible activity
described in subparagraphs (A) through
(G) of section 1366(c)(3); or
``(VI) other activities determined
appropriate by the Administrator;
``(ii) with respect to a project described
in clause (i), only for expenditures directly
related to a project described in that clause,
including expenditures for planning, design,
and associated pre-construction activities; and
``(iii) to acquire, for the purposes of
permanent protection, land, buildings, or a
conservation easement from a willing seller or
grantor;
``(E) may not use the amounts--
``(i) to construct buildings or expand
existing buildings, unless the activity is for
the purpose of flood mitigation;
``(ii) to improve any structure, unless the
recipient has obtained flood insurance
coverage, which shall be maintained for the
useful life of the structure, in an amount that
is not less than the lesser of--
``(I) the eligible project costs
with respect to the structure; and
``(II) the maximum insurable limit
for the structure under the national
flood insurance program coverage for
the structure;
``(iii) to improve a residential property
with an appraised value that is not less than
125 percent of the limitation on the maximum
original principal obligation of a conventional
mortgage that may be purchased by the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation in the area in
which the property is located, as established
under section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)) and section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2));
``(iv) for the direct benefit of a
homeowner if the annual household adjusted
gross income of the homeowner during the
previous fiscal year was not less than
$200,000, as annually adjusted by the
Administrator to reflect changes in the
Consumer Price Index for All Urban Consumers,
as published by the Bureau of Labor Statistics
of the Department of Labor and rounded to the
nearest $25; or
``(v) to acquire real property or an
interest in real property unless the property
is purchased from a willing seller; and
``(F) to the maximum extent practicable, shall, in
using those amounts, give priority to projects that
assist low-income homeowners and low-income
geographical areas.
``(d) Intended Use Plans.--
``(1) In general.--After providing the opportunity for
public review and comment, each participating State shall
annually prepare a plan that identifies, for the year following
the date of issuance of the intended use plan, the intended
uses of the amounts available in the State loan fund of the
participating State.
``(2) Consultation during preparation.--Each participating
State, in preparing an intended use plan, shall ensure that the
State agency with primary responsibility for floodplain
management--
``(A) provides oversight with respect to the
preparation of the intended use plan; and
``(B) consults with any other appropriate State
agency, including agencies responsible for coastal and
environmental management.
``(3) Contents.--A participating State shall, in each
intended use plan--
``(A) include--
``(i) an explanation of the mitigation and
resiliency benefits the State intends to
achieve, including by--
``(I) reducing future damage and
loss associated with flooding;
``(II) reducing the number of
severe repetitive loss properties and
repetitive loss structures in the
State;
``(III) decreasing the number of
flood insurance claims in the State;
and
``(IV) increasing the rating under
the Community Rating System for
communities in the State;
``(ii) information with respect to the
availability of, and the application process
for receiving, financial assistance from the
State loan fund of the State;
``(iii) the criteria and methods
established for the distribution of amounts
from the State loan fund of the State;
``(iv) the amount of financial assistance
that the State anticipates providing to--
``(I) local government projects;
and
``(II) projects for homeowners,
business, or nonprofit organizations;
``(v) the expected terms of the assistance
provided under clause (iv); and
``(vi) a description of the financial
status of the State loan fund and the short-
term and long-term goals of the State loan
fund; and
``(B) provide, to the maximum extent practicable,
that priority for the use of amounts from the State
loan fund shall be given to projects that--
``(i) address severe repetitive loss
properties and repetitive loss structures;
``(ii) assist low-income homeowners and
low-income geographic areas; and
``(iii) address flood risk for pre-FIRM
buildings.
``(4) Publication.--Each participating State shall publish
and periodically update a list of all projects receiving
funding from the State loan fund of the State, which shall
include identification of--
``(A) the community in which the project is
located;
``(B) the type and amount of assistance provided
for each project; and
``(C) the expected funding schedule and date of
completion of each project.
``(e) Fund Management.--Amounts in a State loan fund shall--
``(1) remain available for providing financial assistance
under this section until distributed;
``(2) if the amounts are not required for immediate
distribution or expenditure, be invested in interest-bearing
obligations; and
``(3) except as provided in subsection (i), include only--
``(A) amounts received from capitalization grants
made under this section;
``(B) repayments of loans made from the fund; and
``(C) interest earned on amounts in the fund.
``(f) Matching Funds.--
``(1) Full grant.--On or before the date on which a
participating State receives a capitalization grant, the State
shall deposit into the State loan fund of the State, in
addition to the amount of the capitalization grant, an amount
from non-Federal sources that is not less than 20 percent of
the total amount of the capitalization grant.
``(2) Reduced grant.--If, with respect to a capitalization
grant, a participating State deposits in the State loan fund of
the State an amount from non-Federal sources that is less than
20 percent of the total amount of the capitalization grant that
the participating State would otherwise receive, the
Administrator shall--
``(A) reduce the amount of the capitalization grant
received by the State to the amount that is 5 times the
amount so deposited; and
``(B) in accordance with subsection (b)(5),
allocate the difference between the amount that the
participating State would have received if the State
had complied with paragraph (1) and the amount of the
reduced grant that the participating State receives
under subparagraph (A).
``(g) Types of Assistance.--Unless otherwise prohibited by State
law, a participating State may use the amounts deposited into a State
loan fund under this section only--
``(1) to make a loan, on the condition that--
``(A) the interest rate for the loan is not more
than the market interest rate;
``(B) the recipient of the loan will begin making
principal and interest payments on the loan not later
than 1 year after the date on which the project for
which the loan was made is completed;
``(C) the loan will be fully amortized not later
than 20 years after the date on which the project for
which the loan was made is completed, except that, in
the case of a loan made for a project in a low-income
geographic area or to a low-income homeowner, the State
may provide a longer amortization period for the loan
if that longer period--
``(i) ends on a date that is not later than
30 years after the date on which the project is
completed; and
``(ii) is not longer than the expected
design life of the project;
``(D) the recipient of the loan demonstrates, based
on verified and documented information that, as of the
date on which the loan is made, the recipient has a
reasonable ability to repay the loan, according to the
terms of the loan, except that this subparagraph may
not be construed to authorize any reduction or
limitation in efforts to comply with the requirements
of subsection (c)(2)(F); and
``(E) payments of principal and interest with
respect to the loan will be deposited into the State
loan fund;
``(2) to buy or refinance the debt obligation of a local
government at an interest rate that is not more than the market
interest rate;
``(3) to guarantee, or purchase insurance for, a local
obligation, the proceeds of which finance a project eligible
for assistance under this section, if the guarantee or
purchase, as applicable, would--
``(A) improve credit market access; or
``(B) reduce the interest rate with respect to the
obligation;
``(4) as a source of revenue or as security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State if the proceeds of the sale of the
bonds will be deposited into the State loan fund; or
``(5) to earn interest on those amounts.
``(h) Assistance for Low-Income Homeowners and Low-Income
Geographic Areas.--
``(1) In general.--Notwithstanding any other provision of
this section, if a participating State uses amounts from a
State loan fund to provide financial assistance under
subsection (c) in a low-income geographic area or to a low-
income homeowner, the State may provide additional
subsidization to the recipient of the assistance, including
forgiveness of the principal of a loan.
``(2) Limitation.--For each fiscal year, the total amount
of additional subsidization provided by a participating State
under paragraph (1) may not exceed 30 percent of the amount of
the capitalization grant allocated to the State for that fiscal
year.
``(i) Administration of Fund.--
``(1) In general.--A participating State may combine the
financial administration of a State loan fund with the
financial administration of any other revolving fund
established by the State if--
``(A) combining the administration of the funds
would--
``(i) be convenient and avoid
administrative costs; and
``(ii) not violate the law of the State;
and
``(B) the Administrator determines that--
``(i) amounts obtained from a grant made
under this section, amounts obtained from the
repayment of a loan made from a State loan
fund, and interest earned on amounts in a State
loan fund will be--
``(I) accounted for separately from
amounts from other revolving funds; and
``(II) used only for purposes
authorized under this section; and
``(ii) after consulting with the
appropriate State agencies, the authority to
establish assistance priorities and carry out
oversight and related activities, other than
financial administration, with respect to flood
assistance remains with the State agency with
primary responsibility for floodplain
management.
``(2) Administrative and technical costs.--
``(A) In general.--For each fiscal year, a
participating State may use the amount described in
subparagraph (B) to--
``(i) pay the reasonable costs of
administration of the programs under this
section, including the recovery of reasonable
costs incurred in establishing a State loan
fund;
``(ii) provide appropriate oversight of
projects authorized under this section; and
``(iii) provide technical assistance and
outreach to recipients in the State of amounts
under this section, including with respect to
updating hazard mitigation plans and
participating in the Community Rating System,
in an amount that is not more than 4 percent of
the funds made available to the State under
this section.
``(B) Description.--The amount described in this
subparagraph is an amount equal to the sum of--
``(i) any fees collected by a participating
State to recover the costs described in
subparagraph (A)(i), regardless of the source;
and
``(ii) the greatest of--
``(I) $400,000;
``(II) 0.2 percent of the value of
the State loan fund of a State, as of
the date on which the valuation is
made; and
``(III) an amount equal to 7
percent of all grant awards made to a
participating State for the State loan
fund of the State under this section
for the fiscal year.
``(3) Audit and report.--
``(A) Audit requirement.--Not less frequently than
biennially, each participating State shall conduct an
audit of the State loan fund of the State.
``(B) Report.--Each participating State shall
submit to the Administrator a biennial report regarding
the activities of the State under this section during
the period covered by the report, including--
``(i) the result of any audit conducted by
the State under subparagraph (A); and
``(ii) a review of the effectiveness of the
State loan fund of the State with respect to--
``(I) the intended use plans of the
State; and
``(II) meeting the objectives
described in subsection (b)(1).
``(4) Oversight.--In conducting oversight with respect to
State loan funds established under this section, the
Administrator--
``(A) shall--
``(i) periodically audit the funds in
accordance with procedures established by the
Comptroller General of the United States; and
``(ii) not less frequently than once every
4 years, review each State loan fund to
determine the effectiveness of the fund in
reducing flood risk; and
``(B) may, at any time--
``(i) make recommendations to a
participating State with respect to the
administration of the State loan fund of the
State; or
``(ii) require specific changes with
respect to a State loan fund in order to
improve the effectiveness of the fund.
``(j) Liability Protections.--The Federal Emergency Management
Agency shall not be liable for any claim based on the exercise or
performance of, or the failure to exercise or perform, a discretionary
function or duty by the Agency, or an employee of the Agency, in
carrying out this section.
``(k) Regulations.--The Administrator shall promulgate such
guidance or regulations as may be necessary to carry out this section,
including guidance or regulations that--
``(1) ensure that each participating State to which funds
are allocated under this section uses the funds as efficiently
as possible;
``(2) reduce, to the maximum extent practicable, waste,
fraud, and abuse with respect to the implementation of this
section; and
``(3) require any party that receives funds directly or
indirectly under this section, including a participating State
and a recipient of amounts from a State loan fund, to use
procedures with respect to the management of the funds that
conform to generally accepted accounting standards.
``(l) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section
for fiscal years 2020 through 2029.''.
(b) Consideration of Mitigation Measures Funded by State Loan Funds
in Flood Insurance Premium Rates.--
(1) Estimated rates.--Section 1307(a)(1)(A)(ii) of the
National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(A)(ii)) is amended by striking ``and similar
measures'' and inserting ``similar measures, and any activities
funded through amounts from a State loan fund established under
section 1326''.
(2) Chargeable rates.--Section 1308(b)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended
by striking ``and similar measures'' and inserting ``similar
measures, and any activities funded through amounts from a
State loan fund established under section 1326''.
SEC. 208. MAPPING MODERNIZATION.
(a) Amendments to the Biggert-Waters Flood Insurance Reform Act of
2012.--The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4004 et seq.) is amended--
(1) in section 100215 (42 U.S.C. 4101a)--
(A) in subsection (b)(1)--
(i) by redesignating subparagraphs (A)
through (E) as subparagraphs (B) through (F),
respectively;
(ii) by inserting before subparagraph (B),
as so redesignated, the following:
``(A) the Director of the United States Geological
Survey;''; and
(iii) in subparagraph (F), as so
redesignated--
(I) in the matter preceding clause
(i), by striking ``16'' and inserting
``17'';
(II) in clause (xiii), by striking
``and'' at the end;
(III) in clause (xiv), by striking
the period at the end and inserting ``;
and''; and
(IV) by adding at the end the
following:
``(xv) an expert in the field of
catastrophic risk modeling.''; and
(B) by adding at the end the following:
``(m) Private or Community Flood Maps.--
``(1) Standards and procedures.--In addition to the other
duties of the Council under this section, not later than 1 year
after the date of enactment of this subsection, the Council
shall develop and establish a set of standards, guidelines, and
procedures for--
``(A) State and local governments, federally or
State-recognized metropolitan planning organizations
(commonly known as `MPOs'), federally or State-
recognized councils of local governments, and federally
or State-recognized rural transportation planning
organizations to use in mapping flood risks and
developing alternative maps to the flood insurance rate
maps developed by the Administrator; and
``(B) certification, by the Administrator not later
than 90 days after the date on which a map developed
under subparagraph (A) is submitted to the
Administrator, for use under the National Flood
Insurance Program in the case of any area covered by a
flood insurance rate map developed or approved by the
Administrator that has not been updated or reissued
during the preceding 3-year period.
``(2) Treatment.--On and after the date on which the
Administrator certifies a map under paragraph (1)(B), the map--
``(A) shall be considered the flood insurance rate
map in effect for all purposes of the National Flood
Insurance Program with respect to the area covered by
the map; and
``(B) may not be revised, updated, or replaced in
accordance with the standards, guidelines, and
procedures established under paragraph (1) before the
expiration of the 3-year period beginning on that date
of certification.
``(3) Exemption from rulemaking.--Until the date on which
the Administrator promulgates regulations implementing
paragraphs (1) and (2), the Administrator may adopt policies
and procedures, notwithstanding any other provision of law,
necessary to implement those paragraphs without regard to
section 553 of title 5, United States Code, and without
conducting regulatory analyses otherwise required by statute,
regulation, or Executive order.''; and
(2) in section 100216 (42 U.S.C. 4101b)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``to--'' and all that follows
through the end of clause (vi) and
inserting ``to all areas of the United
States;'';
(II) in subparagraph (B), by
striking ``and'' at the end;
(III) in subparagraph (C), by
striking ``accurate topography'' and
all that follows through the period at
the end and inserting ``current and
best remote sensing technology;''; and
(IV) by adding at the end the
following:
``(D) when appropriate, partner with other Federal
agencies and private entities in order to meet the
objectives of the program; and
``(E) consult and coordinate with the Secretary of
Defense, the Director of the United States Geological
Survey, and the Administrator of the National Oceanic
and Atmospheric Administration to obtain the most up-
to-date maps and other information of those agencies,
including information relating to topography, water
flow, watershed characteristics, and any other issues
that are relevant to identifying, reviewing, updating,
maintaining, and publishing National Flood Insurance
Program rate maps.''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by
redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively,
and adjusting the margins accordingly;
(II) by redesignating subparagraphs
(A) through (E) as clauses (i) through
(v), respectively, and adjusting the
margins accordingly;
(III) in the matter preceding
clause (i), as so redesignated, by
striking ``Administrator shall
include--'' and inserting the
following: ``Administrator--
``(A) shall include--'';
(IV) in subparagraph (A)(v), as so
redesignated, by striking the period at
the end and inserting ``; and''; and
(V) by adding at the end the
following:
``(B) may include--
``(i) any relevant information that is
obtained under paragraph (1)(D); and
``(ii) cadastral features, including, for
each cadastral feature--
``(I) the associated parcel
identification data for that feature;
and
``(II) to the maximum extent
practicable, using public and private
sector address data, the address of
that feature.'';
(B) in subsection (c)(2)--
(i) in subparagraph (B), by striking
``and'' at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) not later than 5 years after the date on
which the National Geodetic Survey completes the
modernization of the National Spatial Reference System
in 2022, updated to conform with the geospatial data
provided by that system; and
``(E) spatially accurate in accordance with the
common protocols for geographic information systems
under section 216 of the E-Government Act of 2002 (44
U.S.C. 3501 note).'';
(C) by redesignating subsection (f) as subsection
(g);
(D) by inserting after subsection (e) the
following:
``(f) Incorporating Building-Specific Flood Risk Information.--
``(1) Establishment.--
``(A) In general.--Not later than 5 years after the
date of enactment of the National Flood Insurance
Program Reauthorization and Reform Act of 2019, the
Administrator, in coordination with, and as recommended
by, the Technical Mapping Advisory Council, shall
establish a dynamic, database-derived digital display
environment for flood hazard risk production and
dissemination.
``(B) Consultation with states and communities.--In
designing and constructing the environment under
subparagraph (A), the Administrator shall--
``(i) leverage and partner with States and
communities that have successfully implemented
the same approach; and
``(ii) consider adopting the techniques and
technologies used by States and communities
described in clause (i) and applying them
nationwide.
``(2) Digital display.--
``(A) In general.--In carrying out paragraph (1),
the Administrator shall create a digital display
prompted through dynamic querying of a spatial,
relational building database that includes--
``(i) special flood hazard areas and base
flood elevations for purposes of lender
compliance with the requirements under section
102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a); and
``(ii) structure-specific flood risk
information, including, for each property
address--
``(I) the spatial footprint and
elevation of the structure relative to
special flood hazard areas and base
flood elevations;
``(II) the most current elevation
certificate applicable to the property;
``(III) any letter of map changes;
``(IV) the full risk premium rate
estimated for the structure under
section 1307(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)) based on elevation data;
``(V) the disclosure described in
section 1308(l) of the National Flood
Insurance Act of 1968 (42 U.S.C.
4015(l)), which shall include--
``(aa) the extent to which,
if any, the chargeable premium
rate applicable to the property
is less than the full risk
premium rate under section
1307(a)(1) of that Act (42
U.S.C. 4014(a)(1)); and
``(bb) an explanation of
the difference described in
item (aa) and the methodology
used to rate the property;
``(VI) the estimated cost to repair
the structure in the case of damage
from floods with recurrence intervals
ranging from the 10 percent annual
chance event to the 0.2 percent annual
chance event;
``(VII) the cost-effectiveness of
mitigating the structure using common
methods and how the chargeable premium
rate would change based on each
mitigation method; and
``(VIII) the claims history of the
structure, including the amount and
date of each loss.
``(B) Privacy requirements.--With respect to the
database described in subparagraph (A), including any
data used to create that database, the Administrator
may not disseminate the database to any person other
than the owner or leaseholder of a property identified
in the database.
``(3) Database.--
``(A) In general.--The Administrator shall--
``(i) develop a spatial, relational
database of buildings in the National Flood
Insurance Program; and
``(ii) obtain the data necessary to support
the digital display created under paragraph
(2).
``(B) Data.--The data obtained under subparagraph
(A) shall include, at a minimum--
``(i) footprints and elevations (including
lowest adjacent grade and first floor) from
Light Detection and Ranging (commonly known as
`LiDAR') data collections or other data
collection methods that meet or exceed the
standards for buildings, as determined by the
Administrator;
``(ii) elevation certificates;
``(iii) parcel, address, and imagery data
necessary for the identification, assessment,
and reduction of flood hazards for individual
properties;
``(iv) flood insurance rate maps, studies,
and supporting data;
``(v) letters of map change; and
``(vi) any other data that the
Administrator determines necessary to collect
to meet the objectives of this section.
``(4) Data procurement.--The Administrator shall obtain any
data necessary to establish the environment under paragraph
(1), including by--
``(A) directing communities participating in the
National Flood Insurance Program, by regulation, to
collect and supply information, including elevation
data, for each structure that obtains a construction or
other development permit within--
``(i) a special flood hazard area; or
``(ii) an advisory special flood hazard
area adopted by the community;
``(B) issuing guidelines and standards, as
determined by the Administrator;
``(C) partnering with other Federal, State, local,
and private stakeholders to the greatest extent
possible to obtain and share existing data that meets
or exceeds the standards determined by the
Administrator under subparagraph (B); and
``(D) contracting with private companies to obtain
new LiDAR data collections or elevation certificates.
``(5) NFIP premium credit.--The Administrator shall provide
a 1-time premium credit of not more than $500 to a policyholder
for--
``(A) the purchase of an elevation certificate; or
``(B) the purposes of appealing the chargeable
premium rate with respect to the property to which the
premium applies.
``(6) Mass letters of map change.--In coordination with
States and communities that have successfully implemented a
dynamic, database-derived digital display environment for flood
hazard risk production and dissemination, the Administrator
shall issue guidelines for the adoption and integration into
the program established under subsection (a) of LiDAR-based
letter of map amendment approaches.
``(7) Annual report.--The Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives an annual progress report on the implementation
of this subsection, which shall include recommendations to
reduce the cost and improve the implementation of this
subsection.''; and
(E) in subsection (g), as so redesignated--
(i) by striking ``this section
$400,000,000'' and inserting the following:
``this section--
``(1) $400,000,000''; and
(ii) by striking the period at the end and
inserting the following: ``; and
``(2) $400,000,000 for each of fiscal years 2020 through
2025.''.
(b) Appeals.--
(1) In general.--
(A) Right to appeal.--Section 1360 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended
by adding at the end the following:
``(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,
that makes a formal request to the Administrator to update a
flood insurance rate map that the Administrator denies may at
any time appeal the denial in accordance with this subsection.
``(2) Basis for appeal.--The basis for an 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 insurance rate 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.--The
Administrator shall determine an appeal under this
subsection by making a final adjudication on the
record, after providing an opportunity for an
administrative hearing.
``(B) Rights upon adverse decision.--
``(i) Optional arbitration.--If an appeal
determined under subparagraph (A) does not
result in a decision in favor of the State,
local government, owner, or lessee, that party
may request that an appeal of the adverse
decision be heard through independent, non-
binding arbitration.
``(ii) Process.--The Administrator shall
establish a process for arbitration under
clause (i) under which the arbitrator provides
a non-binding recommendation to the
Administrator.
``(4) Relief.--
``(A) Wholly successful appeals.--If the
Administrator determines, in an appeal under this
subsection, that the property of a policyholder that
had been included in a special flood hazard area under
the flood insurance rate map is actually not in a
special flood hazard area--
``(i) the policyholder may cancel the
policy at any time during the year in which the
Administrator makes the determination; and
``(ii) the Administrator shall provide the
policyholder a refund equal to the amount of--
``(I) any premiums that the
policyholder paid during the year
described in clause (i); and
``(II) any premiums that the
policyholder paid for flood insurance
coverage that the policyholder was
required to purchase or maintain during
the 2-year period preceding the year
described in clause (i).
``(B) Partially successful appeals.--If the
Administrator determines in an appeal under this
subsection that mitigating factors have reduced, but
not eliminated, the risk of flooding to a property, the
Administrator shall--
``(i) reduce the amount of flood insurance
coverage required to be maintained for the
property by the ratio of the successful portion
of the appeal as compared to the entire appeal;
and
``(ii) provide the policyholder a refund
equal to the difference between--
``(I) the amount of any premiums
that the policyholder paid during the
period--
``(aa) beginning on the
later of--
``(AA) the date on
which the mitigating
factor was created; or
``(BB) January 1 of
the second year
preceding the date on
which the determination
is made; and
``(bb) ending on the date
on which the reduction in the
amount of flood insurance
required, as described in
clause (i), takes effect; and
``(II) the amount of premiums that
the policyholder would have been
required to pay if the reduced amount
of flood insurance coverage required,
as described in clause (i), had been in
effect during the period described in
subclause (I) of this clause.
``(C) Additional relief.--The Administrator may
provide additional refunds in excess of the amounts
required under subparagraphs (A) and (B) if the
Administrator determines that such additional refunds
are warranted.
``(5) Recovery of costs.--
``(A) Appeal expenses.--If a State or local
government, or the owner or lessee of real property,
incurs any expense in connection with an appeal under
this subsection that is based on a scientific or
technical error made by the Administrator and that is
successful in whole or part regarding the designation
of the base flood elevation or any aspect of a flood
insurance rate map, including elevation or designation
of a special flood hazard area, the Administrator shall
reimburse the State, local government, owner, or lessee
in accordance with subparagraph (B).
``(B) Reimbursable expenses.--The Administrator--
``(i) may reimburse a party under
subparagraph (A) for reasonable expenses
described in that subparagraph--
``(I) including for a service
provided by a surveyor, engineer, or
scientific expert; and
``(II) to the extent measured by
the ratio of the successful portion of
the appeal as compared to the entire
appeal; and
``(ii) may not reimburse a party under
subparagraph (A) for--
``(I) the cost of legal services;
or
``(II) the payment of any fee or
expense, the payment of which was
agreed to be contingent upon the result
of the appeal.
``(6) 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) Technical and conforming amendments.--Section
1310(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4017(a)) is amended--
(i) in paragraph (7), by striking ``and''
at the end;
(ii) in paragraph (8), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(9) for providing reimbursements of expenses of flood
insurance rate map appeals under section 1360(k)(5).''.
(2) Deadline for issuance of guidance.--Not later than 180
days after the date of enactment of this Act, the Administrator
shall issue the guidance required under subsection (k)(6) of
section 1360 of the National Flood Insurance Act of 1968 (42
U.S.C. 4101), as added by paragraph (1)(A).
SEC. 209. PROTECTED AREAS.
Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the
following:
``(4) Zones protected by levee systems.--
``(A) Applicability.--Subject to full
implementation of this section, and notwithstanding any
other provision of law, this paragraph shall apply to a
community in which the Administrator maps or re-maps a
levee-impacted area in which the pertinent levee system
fails to meet the minimum design, operation, and
maintenance standards of the National Flood Insurance
Program required for levee accreditation on a National
Flood Insurance Program rate map.
``(B) AL zones.--For levee-impacted areas described
in subparagraph (A), the Administrator shall establish
flood risk zones known as `AL Zones' on the National
Flood Insurance Program rate map.
``(C) Actuarial rates.--
``(i) In general.--The Administrator shall
make available flood insurance to properties in
AL Zones at actuarial rates based upon the risk
associated with structures within the
applicable AL Zone.
``(ii) Temporary rates.--Until the
Administrator promulgates actuarial rates for
the various AL Zones, a structure within a
portion of a community located within a levee-
impacted area described in subparagraph (A)
shall be eligible for rates associated with
areas of moderate flood hazards (also known as
`Standard X zone' rates).''.
SEC. 210. COMMUNITY-WIDE FLOOD MITIGATION ACTIVITIES.
It is the sense of Congress that the Administrator should consider
flood mitigation activities that--
(1) provide benefits to an entire floodplain or community,
or to a portion of such a community;
(2) consider all available and practicable approaches; and
(3) the Administrator determines--
(A) are technically feasible;
(B) have the highest net benefits; and
(C) are consistent with mitigation plans approved
by the Administrator.
TITLE III--SOLVENCY
SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS.
(a) In General.--During the 5-year period beginning on the date of
enactment of this Act, the Secretary of the Treasury may not charge the
Administrator interest on amounts borrowed by the Administrator under
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)) that were outstanding as of that date of enactment.
(b) Use of Saved Amounts.--There shall be deposited into the
National Flood Mitigation Fund an amount equal to the interest that
would have accrued on the borrowed amounts during the 5-year period
described in subsection (a), which, notwithstanding any provision of
section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104d), the Administrator shall use to carry out the program
established under section 1366 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104c).
(c) No Retroactive Accrual.--After the 5-year period described in
subsection (a), the Secretary of the Treasury shall not require the
Administrator to repay any interest that, but for that subsection,
would have accrued on the borrowed amounts described in that subsection
during that 5-year period.
SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSATION.
(a) In General.--Section 1311 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4018) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Limitation on Compensation; Minimum Agent Commissions.--In
negotiating with appropriate representatives of the insurance industry
under subsection (a), the Administrator shall ensure that--
``(1) any reimbursement paid to a property and casualty
insurance company for selling, writing, and servicing flood
insurance policies is not more than 22.46 percent of the
aggregate amount of premiums charged by the insurance company;
and
``(2) an insurance company pays a portion of the
reimbursement described in paragraph (1) to agents of the
company as a commission, in an amount that is not less than 15
percent of the aggregate amount of the premiums sold by the
agent.''.
(b) Technical and Conforming Amendments.--Section 1311 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by
subsection (a), is amended--
(1) in subsection (a), by striking ``The Administrator''
and inserting ``In General.--The Administrator''; and
(2) in subsection (c), as so redesignated by subsection (a)
of this section, by striking ``For purposes of subsection (a)''
and inserting ``Definitions.--For purposes of this section''.
SEC. 303. TAXPAYER PROTECTION.
Section 1360(g) of the National Flood Insurance Act of 1968 (42
U.S.C. 4101(g)) is amended--
(1) in the first sentence, by inserting ``, subject to the
following sentence,'' after ``at a reasonable cost''; and
(2) by inserting after the first sentence the following:
``The Administrator shall develop a fee schedule based on
recovering the actual costs of providing flood insurance rate
maps to such other persons, and shall charge a fee based on the
schedule to any private entity for the use of such a map.''.
SEC. 304. VENDOR COSTS; TRANSPARENCY.
(a) In General.--Section 100224(d) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended--
(1) by striking ``Not later than 12 months after the date
of enactment of this Act, the Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following:
``(2) Vendor costs; transparency.--In issuing the rule
under paragraph (1), the Administrator shall--
``(A) develop a schedule to determine the actual
costs of Write Your Own vendors, including claims
adjusters and engineering companies;
``(B) provide that if a Write Your Own company
requests reimbursement for the costs of a service or
product provided to the company by a vendor, the
Administrator only reimburses the company for the
actual costs of the service or products; and
``(C) require that all reimbursements to Write Your
Own companies be made public, including a description
of the product or service provided to which the
reimbursement pertains.''.
(b) Deadline for Revised Rule.--Not later than 90 days after the
date of enactment of this Act, the Administrator shall issue a revised
rule under section 100224(d) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).
SEC. 305. AVAILABILITY OF NFIP CLAIMS DATA.
(a) Study Required.--
(1) In general.--The Administrator shall study the
feasibility of selling or licensing the use of historical
structure-specific National Flood Insurance Program claims data
(referred to in this section as ``covered claims data'') to
nongovernmental entities.
(2) Contents.--In conducting the study required under
paragraph (1), the Administrator shall, at a minimum--
(A) investigate 1 or more methods of providing the
most specific covered claims data possible while
reasonably protecting policyholder privacy;
(B) review existing means, as of the date of
enactment of this Act, by which the Federal Government
and nongovernmental entities provide leases or licenses
to private persons, and the various regulations, terms,
conditions, and guidance employed;
(C) identify potential uses for covered claims data
and any known risks concerning those uses, including
the risk that private insurance companies will use the
data to issue flood insurance policies with respect to
properties that have the lowest level of flood risk,
which would require the National Flood Insurance
Program to issue those policies with respect to
properties with higher levels of flood risk;
(D) identify mechanisms for determining the likely
market value for access to covered claims data;
(E) consider whether selling or licensing the use
of covered claims data, as described in paragraph (1),
would be in compliance with section 552a of title 5,
United States Code; and
(F) recommend actions the Administrator could take,
if any, to prevent unintended consequences associated
with the sale or licensing for private insurance
purposes covered claims data.
(b) Report by Administrator.--Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report that contains the results and conclusions of the study conducted
under subsection (a), which shall include an analysis of any
recommendations made by the study.
SEC. 306. REFUSAL OF MITIGATION ASSISTANCE.
Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), in the first sentence, by inserting ``and, with respect to
financial assistance described in paragraph (2), using amounts
made available from the Disaster Relief Fund in accordance with
section 203(n) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133(n))'' after ``section
1367'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:
``(h) Refusal of Assistance.--
``(1) Definition.--In this subsection, the term `bona fide
offer of assistance' means an offer of assistance made by the
Administrator to a policyholder under the national flood
insurance program that--
``(A) relates to mitigation activities with respect
to the structure insured under that program;
``(B) covers 100 percent of the cost of the
mitigation activities described in subparagraph (A);
``(C) permits the policyholder to continue to live
in the structure to which the policy relates; and
``(D) is carried out under a mitigation plan.
``(2) Penalty.--If, after the date of enactment of this
subsection, a policyholder under the national flood insurance
program refuses a bona fide offer of assistance with respect to
the property so insured, the Administrator shall,
notwithstanding any other provision of this title, increase the
chargeable risk premium rate for flood insurance under this
title for the property by 25 percent each year until--
``(A) the policyholder accepts the bona fide offer
of assistance; or
``(B) that chargeable risk premium rate is
actuarially sound.''.
TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS
SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STANDARDS.
(a) Rebuttable Presumption for Foundation and Structural Damage.--
(1) In general.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019) is amended by adding at
the end the following:
``(d) Rebuttable Presumption for Foundation and Structural
Damage.--
``(1) In general.--For the purposes of the Administrator
determining coverage under the standard flood insurance policy
under the national flood insurance program, a rebuttable
presumption that physical damage to the foundation of, or
structural damage to, a structure was not caused by earth
movement shall apply if--
``(A) flood caused direct physical change to the
structure; and
``(B) there is damage to the foundation of, or
structural damage to, the structure that was not
present before the flood, as demonstrated by a
certification from the policyholder.
``(2) Rebuttal.--In determining coverage as a result of the
rebuttable presumption under paragraph (1), an insurance
company may rebut the presumption only by providing the
Administrator with an engineering report that--
``(A) meets standards issued by the Administrator
under paragraph (3); and
``(B) clearly demonstrates that the physical damage
to the foundation of, or structural damage to, a
structure described in paragraph (1) was caused
directly by earth movement that was not caused by--
``(i) the horizontal pressure from standing
or slow-moving floodwater (commonly known as
`hydrostatic pressure');
``(ii) the force of floodwater that causes
the vertical uplift from the underside of a
horizontal foundation component, such as a
concrete slab, footer, or a structural floor
assembly (commonly known as `buoyancy');
``(iii) pressure imposed on an object, such
as a wall of a building, by high-velocity
floodwater or waves flowing against and around
the building (commonly known as `hydrodynamic
force');
``(iv) floodwater moving along the surface
of the ground causing soil to suddenly erode or
undermine, resulting in failure of a foundation
or to one of the structural components of the
foundation (commonly known as `scouring'); or
``(v) earth movement otherwise caused by
flood.
``(3) In general.--The Administrator shall issue minimum
standards--
``(A) regarding the form and content of engineering
reports used to assist insurance claims adjusters with
respect to carrying out this subsection; and
``(B) which shall--
``(i) include a requirement that any such
engineering report shall be signed and have a
seal affixed by an engineer who is licensed in
the State in which the property to which the
claim relates is located; and
``(ii) be consistent with generally
accepted practices in--
``(I) the field of forensic
engineering; and
``(II) the insurance industry.
``(4) Rule of construction.--Nothing in this subsection may
be construed to modify the terms and conditions of the standard
flood insurance policy.''.
(2) Application.--The amendments made by paragraph (1)
shall apply with respect to a claim with a date of loss that is
on or after the date that is 90 days after the date of
enactment of this Act.
(b) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall issue the standards
required under subsection (d)(3) of section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a)(1).
SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASEMENTS AND STUDY ON
STREET RAISING.
(a) Basement Clarification.--
(1) In general.--Section 1305 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at
the end the following:
``(e) Availability of Insurance for Pre-FIRM Condominium
Basements.--
``(1) Definition.--In this subsection, the term `pre-FIRM
condominium building' means a condominium building that was not
constructed or substantially improved after the later of--
``(A) December 31, 1974; or
``(B) the effective date of the initial flood
insurance rate map published by the Administrator under
section 1360 for the area in which the building is
located.
``(2) Coverage.--The Administrator shall make flood
insurance available to cover the basement of any pre-FIRM
condominium building if that basement serves as a separate
residential unit within that condominium building.''.
(2) Amendments to regulations.--Not later than 180 days
after the date of enactment of this Act, the Administrator
shall make any amendments to the regulations of the Federal
Emergency Management Agency that are necessary as a result of
the amendment made by paragraph (1).
(b) Study on Consequences of Street-Raising.--
(1) Definition.--In this subsection, the term ``affected
property'' means a property containing an area--
(A) the floor of which was located at or above
grade before the community raised the street adjacent
to the property; and
(B) after the street-raising described in
subparagraph (A), that was designated as a basement
because of the street-raising.
(2) Study; report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall study and submit
to Congress a report on the consequences of street-raising on
flood insurance coverage for an affected property under the
National Flood Insurance Program, including the cost
implications for the property owner.
SEC. 403. GUIDANCE ON REMEDIATION AND POLICYHOLDER DUTIES.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 401(a)(1), is amended
by adding at the end the following:
``(e) Guidance on Mold Remediation.--
``(1) In general.--The Administrator shall issue guidance
relating to the identification of reasonable actions that a
policyholder of coverage for flood insurance made available
under this title may take to inspect and maintain the property
to which that coverage applies--
``(A) after a flood recedes; and
``(B) in order to avoid damage to the property that
is caused by mold, mildew, moisture, or water.
``(2) Considerations.--In developing guidance under
paragraph (1), the Administrator shall consider--
``(A) any applicable laws and regulations;
``(B) the terms and conditions of the standard
flood insurance policy;
``(C) technical best practices;
``(D) the costs of remediation in relation to the
condition of a property described in that paragraph;
and
``(E) the actions that the Administrator may
reasonably expect a policyholder described in that
paragraph to take, given the likely challenges faced by
the policyholder after a flood.
``(3) Regular review.--The Administrator shall--
``(A) regularly review the guidance issued under
paragraph (1); and
``(B) revise the guidance issued under paragraph
(1) as the Administrator determines appropriate.
``(4) Annual distribution.--The Administrator shall provide
a copy of the guidance issued under paragraph (1) to a
policyholder at the time of the purchase or renewal of a flood
insurance policy sold under this title.''.
(b) Initial Issuance.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue the guidance
required under subsection (e) of section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a) of
this section.
(c) Accessibility, Reasonableness and Degree of Damage.--Section
1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as
amended by subsection (a), is amended by adding at the end the
following:
``(f) Exclusion of Certain Damage.--For purposes of determining
whether damage caused by mold, mildew, moisture, or water to a property
shall be excluded from coverage under the standard flood insurance
policy--
``(1) subject to paragraph (2), only the degree of damage
caused by mold, mildew, moisture, or water that could have been
avoided through inspection and maintenance may be excluded from
that coverage; and
``(2) the condition of the property to which the damage
relates may not be considered to be attributable to the
policyholder with respect to the property, including any
failure by the policyholder to inspect and maintain the
property after a flood recedes, if--
``(A) the policyholder was denied access to the
property after the flood receded because of--
``(i) a lawful government order;
``(ii) a determination by local authorities
that the property--
``(I) is unsafe or unstable; or
``(II) shall be condemned; or
``(iii) otherwise unsafe conditions;
``(B) a reasonable individual exercising reasonable
judgment could not be expected to inspect, maintain, or
mitigate the damage to the property under the
circumstances; or
``(C) the policyholder faced particular challenges,
including--
``(i) practical or financial difficulty in
inspecting or maintaining the property;
``(ii) the need to address other more
immediate priorities, including--
``(I) the health and well-being of
the policyholder and the family of the
policyholder;
``(II) the preservation of basic
items;
``(III) displacement; and
``(IV) other issues that make
inspection and maintenance of the
property a near-term challenge for the
policyholder; and
``(iii) the unavailability of contractors
or other individuals to perform any required
inspection and maintenance.''.
SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.
(a) In General.--Section 205 of the Bunning-Bereuter-Blumenauer
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is amended--
(1) in the matter preceding paragraph (1), by striking
``Not later'' and inserting the following:
``(a) In General.--Not later''; and
(2) by adding at the end the following:
``(b) Deadline To File Appeal.--The Director shall establish a
deadline for filing an appeal under this section that is not less than
1 year after the date on which the decision being appealed was made.
``(c) Notification Upon Initial Denial of Claim.--The Director
shall ensure that a claimant is provided with the rules, forms, and
deadlines for an appeal under this section at the time a claim is first
denied in full or in part, including--
``(1) the effective date of the denial;
``(2) a justification for the denial, including supporting
documentation;
``(3) the date on which the period of limitation for
instituting an action on the claim under section 1333 or 1341
of the National Flood Insurance Act of 1968 (42 U.S.C. 4053 and
4072), as applicable, will end; and
``(4) a point of contact through which the claimant can
directly discuss an appeal with a representative of the Federal
Emergency Management Agency.
``(d) Deadline To Resolve Appeal.--
``(1) In general.--Not later than 90 days after the date on
which a policyholder has submitted all necessary information
relating to an appeal under this section, the Director shall
provide an appeal decision in writing to the policyholder and
insurer, including specific information for the resolution of
the appeal.
``(2) Enforcement.--If the Director does not comply with
the deadline under paragraph (1) with respect to an appeal, and
the policyholder that brought the appeal is ultimately
successful, the Director shall pay to the policyholder interest
on the claim that is the subject of the appeal, which shall--
``(A) begin accruing on the date on which the
policyholder files the appeal; and
``(B) be calculated using the rate of return on a
3-year Treasury bill, as in effect on the date
described in subparagraph (A).
``(3) Notification upon denial of appeal.--If the Director
denies an appeal filed by a policyholder under this section,
the Director shall include with the notice of denial--
``(A) an explanation of the legal options of the
policyholder for further challenging the denial; and
``(B) the date on which the period of limitation
for instituting an action on the claim under section
1333 or 1341 of the National Flood Insurance Act of
1968 (42 U.S.C. 4053 and 4072), as applicable, will
end.
``(e) Optional Arbitration.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, the Director shall, by
regulation, establish a process through which a flood insurance
policyholder, instead of submitting an appeal under this
section, may request that the appeal be heard through
independent, binding arbitration.
``(2) Rule of construction.--Nothing in paragraph (1) may
be construed to--
``(A) require a policyholder to submit to the
arbitration described in that paragraph; or
``(B) prevent a policyholder from obtaining
judicial review of the results of the arbitration
described in that paragraph.''.
(b) Relation to Regulations and Other Law.--Nothing in the
amendments made by subsection (a) may be construed to require the
Administrator to repeal the regulations promulgated under section 205
of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004
(42 U.S.C. 4011 note), as in effect on the day before the date of
enactment of this Act, or to promulgate new regulations, except as
necessary to implement those amendments.
SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS AND OVERPAYMENTS BY WRITE
YOUR OWN COMPANIES.
Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C.
4084) is amended by adding at the end the following:
``(c) Accountability for Underpayments.--If the Administrator
determines through any audit that the pool or an insurance company or
other private organization described in subsection (a) has not adjusted
a claim in accordance with adjusting standards that are in effect as of
the date on which the adjustment is performed and, as a result of that
failure, has underpaid or overpaid a claim of a policyholder, the
penalty imposed by the Administrator with respect to such a failure may
not be less for an overpayment of a claim than for an underpayment of a
claim.
``(d) GAO Report.--Not later than 2 years after the date of
enactment of this subsection, and triennially thereafter, the
Comptroller General of the United States shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives a report
regarding any fines or other penalties imposed by the Administrator
under subsection (c).''.
SEC. 406. POLICYHOLDERS' RIGHT TO KNOW.
(a) Use.--Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019), as amended by section 403(c), is amended by adding at
the end the following:
``(g) Use of Technical Assistance Reports.--When adjusting claims
for any damage to or loss of property that is covered by flood
insurance made available under this title, the Administrator may rely
upon technical assistance reports, as defined in section 1312A(a), only
if the reports are final and are prepared in compliance with applicable
State and Federal laws regarding professional licensure and conduct.''.
(b) Disclosure.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section
1312 (42 U.S.C. 4019) the following:
``SEC. 1312A. DISCLOSURE OF CLAIMS DOCUMENTS AND TECHNICAL ASSISTANCE
REPORTS.
``(a) Definitions.--In this section--
``(1) the term `policyholder' means any person listed as a
named or additional insured on the declarations page of a
policy for flood insurance coverage made available under this
title; and
``(2) the term `technical assistance report' means a report
created for the purpose of furnishing technical assistance to
an insurance claims adjuster assigned under the national flood
insurance program, including any report created by an engineer,
a surveyor, a salvor, an architect, or a certified public
accountant.
``(b) Provision of Copies.--
``(1) In general.--Notwithstanding section 552a of title 5,
United States Code, not later than 1 week after the date on
which the Administrator receives a written request, or a
request submitted online, from a policyholder, and with respect
to a claim for loss submitted by the policyholder for any
damage to or loss of property that is covered by the policy,
the Administrator shall provide a true, complete, and
unredacted copy of--
``(A) all documents that constitute the claims file
of the insurance company with respect to the claim;
``(B) any document created by any adjuster in
scoping the loss, including measurements, photographs,
and notes;
``(C) any estimates of damages with respect to the
claim;
``(D) any draft and final technical assistance
report relating to adjusting and paying or denying the
claim;
``(E) any proof of loss, supplemental proofs of
loss, or any equivalent notices, together with
supporting documentation, with respect to the claim;
and
``(F) any document relating to the denial or
partial denial of the claim.
``(2) Rule of construction.--Nothing in paragraph (1) may
be construed to limit the right of a policyholder to receive a
disclosure under section 552a of title 5, United States Code,
or any other provision of law.
``(c) Direct Disclosure by Write Your Own Companies and Direct
Servicing Agents.--
``(1) In general.--A Write Your Own company or direct
servicing agent in possession of any technical assistance
report that is subject to disclosure under subsection (b) may
disclose such technical assistance report without further
review or approval by the Administrator.
``(2) Affirmative notification.--A Write Your Own company,
or any other entity servicing a claim under the national flood
insurance program, shall, not later than 30 days after the date
on which the company or entity receives notice of a claim,
notify the claimant that the claimant or an authorized
representative of the claimant may obtain, upon request, a copy
of any claim-related document described in subsection (b)(1)
that pertains to the claimant.''.
(c) Transmission of Report Without Approval.--
(1) Definition.--In this subsection, the term ``final
engineering report'' means an engineering report, survey, or
other document in connection with a claim for losses covered by
a policy for flood insurance coverage made available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)
that--
(A) is based on an on-site inspection;
(B) contains final conclusions with respect to an
engineering issue or issues involved in the claim; and
(C) is signed by the responsible in charge or
affixed with the seal of the responsible in charge, or
both.
(2) Transmission.--A Write Your Own company or a National
Flood Insurance Program direct servicer may, without obtaining
further review or approval by the Administrator, transmit to a
policyholder a final engineering report in the possession of
the Write Your Own company or the direct servicer in connection
with a claim submitted by the policyholder.
SEC. 407. INCREASING STATUTE OF LIMITATIONS FOR LAWSUITS.
(a) Government Program With Industry Assistance.--Section 1341 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended to
read as follows:
``SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
``(a) Adjustment and Payment of Claims.--If the program is carried
out as provided in section 1340, the Administrator may adjust and make
payment of any claims for proved and approved losses covered by flood
insurance made available under this title.
``(b) Judicial Review.--
``(1) Right of action.--Upon the denial or partial denial
by the Administrator of a claim described in subsection (a), or
upon the refusal of a policyholder to accept the amount allowed
upon a claim described in that subsection, the policyholder may
institute an action against the Administrator on the claim in
the United States district court for the district in which the
insured property or the major part thereof shall have been
situated if filed not later than 2 years after the date on
which the policyholder receives notice of denial or partial
denial of the claim.
``(2) Tolling.--In the case of a denial or partial denial
of a claim for losses that is appealed under section 205 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004
(42 U.S.C. 4011 note), including through arbitration requested
under subsection (e) of that section, the limitation to
institute an action under this subsection shall be tolled until
the date on which the policyholder receives notice of a final
determination of that appeal or arbitration denying the claim
in whole or in part.
``(3) Jurisdiction.--A court described in paragraph (1)
shall have original exclusive jurisdiction to hear and
determine an action under that paragraph without regard to the
amount in controversy.''.
(b) Industry Program With Federal Financial Assistance.--Section
1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053) is
amended to read as follows:
``SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
``(a) Adjustment and Payment of Claims.--The insurance companies
and other insurers that form, associate, or otherwise join together in
the pool under this part may adjust and pay all claims for proved and
approved losses covered by flood insurance in accordance with the
provisions of this title.
``(b) Judicial Review.--
``(1) Right of action.--Upon the denial or partial denial
by any company or other insurer described in subsection (a) of
a claim described in that subsection, or upon the refusal of a
policyholder to accept the amount allowed upon a claim
described in that subsection, the policyholder may institute an
action on the claim against the company or other insurer, as
applicable, in the United States district court for the
district in which the insured property or the major part
thereof shall have been situated not later than 2 years after
the date on which the policyholder receives notice of denial or
partial denial of the claim.
``(2) Tolling.--In the case of a denial or partial denial
of a claim for losses that is appealed under section 205 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004
(42 U.S.C. 4011 note), including through arbitration requested
under subsection (e) of that section, the limitation to
institute an action under this subsection shall be tolled until
the date on which the policyholder receives notice of a final
determination of that appeal or arbitration denying the claim
in whole or in part.
``(3) Jurisdiction.--A court described in paragraph (1)
shall have original exclusive jurisdiction to hear and
determine an action under that paragraph without regard to the
amount in controversy.''.
SEC. 408. AUTHORITY TO TERMINATE CONTRACTORS AND VENDORS.
(a) In General.--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:
``SEC. 1349. TERMINATION OF CONTRACTS.
``(a) Definition.--In this section, the term `covered entity' means
any attorney, law firm, consultant, or third-party company that
provides services to a Write Your Own company.
``(b) Termination.--
``(1) In general.--Notwithstanding any other provision of
law, the Administrator may direct a Write Your Own company to
terminate a contract or other agreement between a covered
entity and the Write Your Own company if the Administrator--
``(A) determines that the covered entity has
engaged in conduct that is detrimental to the national
flood insurance program; and
``(B) not later than 14 days before directing the
termination of the contract or other agreement,
provided notice to the covered entity and the Write
Your Own company with respect to the termination.
``(2) Appeal.--The Administrator shall establish a process
for a covered entity to appeal the termination of a contract or
other agreement under paragraph (1).
``(3) Early termination payouts.--The Administrator or a
Write Your Own company is not required to make any early
termination payout to a covered entity with respect to a
contract or agreement with the Write Your Own company with
respect to which the Administrator directs termination under
paragraph (1).
``(4) Contract terms.--The Administrator shall require each
Write Your Own company to include a reference to the authority
of the Administrator under this section in any contract between
a covered entity and the Write Your Own company.''.
(b) Effective Date; Applicability.--The amendment made by
subsection (a) shall apply to any contract or other agreement between a
covered entity, as defined in section 1349(a) of the National Flood
Insurance Act of 1968, as added by subsection (a), and a Write Your Own
company that is entered into on or after the date of enactment of this
Act.
SEC. 409. EASING PROOF OF LOSS REQUIREMENTS.
Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C.
4019), as amended by section 406(a), is amended by adding at the end
the following:
``(h) Proof of Loss.--
``(1) Deadline for submission of supplemental proof of
loss.--If a policyholder submits a proof of loss, or an
equivalent submission, for a claim with respect to a policy for
flood insurance coverage made available under this title by the
deadline required under the standard flood insurance policy,
the Administrator may not deny payment for any supplemental
proof of loss submitted for flood damage sustained from the
same flood event on the basis that the policyholder failed to
include the flood damages on the initial proof of loss.
``(2) Effect of signature on proof of loss.--If a
policyholder of a policy for flood insurance coverage made
available under this title signs an initial or supplemental
proof of loss described in paragraph (1), that act of signing
may not preclude the policyholder from making supplemental
claims to, or otherwise amending, the initial proof of loss.
``(i) No Condition of Payment.--Notwithstanding any other provision
of law, or any term or condition of a standard flood insurance policy,
the Administrator may not condition payment of an undisputed claim
based on the submission of a signed and sworn to proof of loss.''.
SEC. 410. DEADLINE FOR CLAIM PROCESSING.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 409, is amended by
adding at the end the following:
``(j) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide that, in
the case of a claim for damage to or loss of property that is
covered by a policy for flood insurance made available under
this title--
``(A) except as provided in paragraph (2), not
later than 60 days after the date on which a proof of
loss or comparable submission is provided to the
Administrator--
``(i) an initial determination regarding
approval of the claim for payment or
disapproval of the claim shall be made; and
``(ii) notification of the determination
described in clause (i) shall be provided to
the policyholder making the claim; and
``(B) payment of an approved claim shall be made as
soon as possible after that approval.
``(2) Extension of deadline.--The Administrator shall--
``(A) provide that the period described in
paragraph (1)(A) may be extended by an additional
period of 30 days under extraordinary circumstances;
and
``(B) by regulation--
``(i) establish criteria for--
``(I) demonstrating the
extraordinary circumstances described
in subparagraph (A); and
``(II) determining to which claims
the extraordinary circumstances
described in subparagraph (A) apply;
and
``(ii) provide that, if the deadline
imposed under paragraph (1)(A), as extended
under subparagraph (A), if applicable, is not
satisfied, the amount of the claim to which the
deadline relates shall be increased with
interest, which shall begin accruing on the
date on which the initial claim is filed.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to any claim for damage to or loss of property that is covered by
a policy for flood insurance made available under the National Flood
Insurance Program that is made after the date of enactment of this Act.
SEC. 411. NO MANIPULATION OF ENGINEER REPORTS.
Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C.
4019), as amended by section 410(a), is amended by adding at the end
the following:
``(k) Final Engineering Reports.--
``(1) Definitions.--In this subsection--
``(A) the term `covered claim' means any claim for
losses covered by a policy for flood insurance coverage
made available under this title; and
``(B) the term `final engineering report' means an
engineering report, survey, or other document in
connection with a covered claim that--
``(i) is based on an on-site inspection;
``(ii) contains final conclusions with
respect to an engineering issue or issues
involved in the claim; and
``(iii) is signed by the responsible in
charge or affixed with the seal of the
responsible in charge, or both.
``(2) Prohibition on manipulation and transmission to third
parties.--The Administrator shall require that, in the case of
any on-site inspection of a property by an engineer for the
purpose of assessing any covered claim, the final engineering
report--
``(A) may not--
``(i) include alterations by, or at the
request of, anyone other than the person
responsible for the report; or
``(ii) be transmitted to any other person
before the final engineering report is
transmitted to the policyholder who submitted
the covered claim; and
``(B) shall include a certification, signed by the
person responsible for the final engineering report,
that the final engineering report does not contain any
alterations described in subparagraph (A).''.
SEC. 412. IMPROVED TRAINING OF FLOODPLAIN MANAGERS, AGENTS, AND
ADJUSTERS.
(a) Local Floodplain Managers.--Each regional office of the Federal
Emergency Management Agency shall--
(1) provide training to local floodplain managers, agents,
and claim adjusters in the region regarding the
responsibilities and procedures of local floodplain managers
with respect to conducting substantial damage and substantial
improvement determinations;
(2) work with applicable State agencies to provide the
training described in paragraph (1); and
(3) verify that the individuals described in paragraph (1)
are completing the training described in that paragraph.
(b) Major Disaster Training.--After a flood that is declared a
major disaster by the President under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170),
the Administrator shall, if determined appropriate, provide--
(1) refresher training to prepare insurance claims
adjusters for the unique circumstances of the major disaster;
and
(2) any briefings that are necessary to prepare and inform
floodplain managers, agents, and claim adjusters regarding any
atypical circumstances and issues arising from the natural
disaster.
SEC. 413. ATTORNEY FEE SHIFTING.
(a) Administrative Appeals.--Subsection (d) of section 1312 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4019), as added by
section 401(a)(1), is amended by adding at the end the following:
``(5) Awards for costs in administrative proceedings.--
``(A) In general.--If the claimant prevails in any
appeal to the Administrator of the disallowance or
partial disallowance of a claim for losses covered by
flood insurance made available under this title, the
Administrator shall award costs of the appeal,
including attorney fees, any proceeding expenses, and
engineering and other expert expenses, to the claimant.
``(B) Definition.--For purposes of this paragraph,
the term `prevail' means to be awarded a greater amount
by the Administrator than the amount of the last, best
offer from the Administrator with respect to the claim
of the claimant.''.
(b) Judicial Review.--
(1) Government program with industry assistance.--
Subsection (b) of section 1341 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4072), as added by section 407(a), is
amended by adding at the end the following:
``(4) Attorney fees and other litigation costs.--
``(A) In general.--If the claimant prevails in an
action under this subsection, the court shall award
reasonable costs of litigation, including attorney
fees, litigation expenses, and engineering and other
expert expenses, to the claimant.
``(B) Subrogation.--Any award under subparagraph
(A) shall be paid by the Administrator and, upon such
payment, the Administrator shall be subrogated to the
rights of the claimant to recover such costs for which
the Administrator has compensated the claimant from any
insurance company or other insurer or insurance
adjustment organization that may be responsible for the
disallowance or partial disallowance of the claim.
``(C) Definition.--For purposes of this paragraph,
the term `prevail' means to be awarded a greater amount
by the court than the amount of the last, best offer
from the Administrator with respect to the claim of the
claimant.''.
(2) Industry program with federal financial assistance.--
Subsection (b) of section 1333 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4053), as amended by section 407(b), is
amended by adding at the end the following:
``(4) Attorney fees and other litigation costs.--
``(A) In general.--If the claimant prevails in an
action under this subsection, the court shall award
reasonable costs of litigation, including attorney
fees, litigation expenses, and engineering and other
expert expenses, to the claimant.
``(B) Subrogation.--Any award under subparagraph
(A) shall be paid by the Administrator and, upon such
payment, the Administrator shall be subrogated to the
rights of the claimant to recover such costs for which
the Administrator has compensated the claimant from any
company or other insurer responsible for the
disallowance or partial disallowance of the claim.
``(C) Definition.--For purposes of this paragraph,
the term `prevail' means to be awarded a greater amount
by the court than the amount of the last, best offer
from the insurer or Administrator with respect to the
claim of the claimant.''.
SEC. 414. DOJ DEFENSE AGAINST POLICYHOLDER LAWSUITS.
Subsection (b) of section 1341 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4072), as amended by section 413(b)(1), is amended
by adding at the end the following:
``(5) Representation by department of justice.--If a
claimant institutes an action under this subsection--
``(A) the Administrator shall refer the matter to
the Attorney General; and
``(B) the Attorney General--
``(i) shall represent the Administrator or
the Write Your Own company, as applicable, in
the action; and
``(ii) may not seek to have the court
dismiss an action with potentially meritorious
claims based on good faith errors or omissions
by the claimant in the claimant's proof of
loss.''.
SEC. 415. PILOT PROGRAM FOR PRE-EXISTING STRUCTURAL CONDITIONS.
(a) Definitions.--In this section--
(1) the term ``covered property'' means a property that is
or may be covered by flood insurance under the National Flood
Insurance Program; and
(2) the term ``covered policyholder'' means a policyholder
or potential policyholder of flood insurance under the National
Flood Insurance Program for a covered property.
(b) Pilot Program.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall establish a pilot
program under which Write Your Own companies and National Flood
Insurance Program direct servicers shall, at the request of a covered
policyholder and before providing or renewing insurance coverage with
respect to a covered property under the National Flood Insurance
Program, investigate the pre-existing structural condition of the
covered property for any issues that could result in the denial of a
claim under the National Flood Insurance Program for damage to or loss
of the covered property.
SEC. 416. AGENT ADVISORY COUNCIL.
Part C of chapter II of the National Flood Insurance Act of 1968
(42 U.S.C. 4081 et seq.), as amended by section 408, is amended by
adding at the end the following:
``SEC. 1350. AGENT ADVISORY COUNCIL.
``(a) Establishment.--There is established a council to be known as
the Agent Advisory Council (in this section referred to as the
`Council').
``(b) Membership.--
``(1) Members.--The Council shall consist of--
``(A) the Administrator, or the designee of the
Administrator; and
``(B) 10 additional members appointed by the
Administrator or the designee of the Administrator, of
whom--
``(i) 1 shall be a member of the National
Association of Insurance Commissioners;
``(ii) 2 shall be members of the
Independent Insurance Agents and Brokers of
America;
``(iii) 1 shall be a member of United
Policyholders;
``(iv) 1 shall be a representative of the
Emergency Management Institute of the Federal
Emergency Management Agency;
``(v) 1 shall be a representative of the
Office of the Flood Insurance Advocate of the
Federal Emergency Management Agency;
``(vi) 2 shall be members of the National
Association of Professional Insurance Agents;
``(vii) 1 shall be a representative of a
recognized professional association or
organization representing homebuilders or land
developers; and
``(viii) 1 shall be a representative of a
recognized professional association or
organization representing the real estate
industry.
``(2) Qualifications.--
``(A) In general.--Each member of the Council shall
have experience with--
``(i) contacting policyholders under the
national flood insurance program, including
with respect to applying for flood insurance
and processing a claim for damage to or loss of
property that is covered by flood insurance;
and
``(ii) riverine and coastal flood insurance
policies.
``(B) Considerations.--The Administrator shall, to
the maximum extent practicable, ensure that the
membership of the Council has a balance of governmental
and private members, and includes geographic diversity.
``(C) Conflicts of interest.--A member of the
Council--
``(i) may not, while serving on the
Council, be employed or retained--
``(I) by a Federal Emergency
Management Agency contractor or
consultant; or
``(II) by a nongovernmental entity
that was awarded a Federal grant during
the 5-year period preceding the date on
which the member was appointed to the
Council; and
``(ii) may not have been employed by a
Federal Emergency Management Agency contractor
or consultant during the 5-year period
preceding the date on which the member was
appointed to the Council.
``(3) Consultation.--In appointing a member of the Council
from an entity described in clauses (i) through (viii) of
paragraph (1)(B), the Administrator or the designee of the
Administrator, as applicable, shall consult with the entity.
``(4) Chairperson.--The members of the Council shall elect
1 member to serve as the chairperson of the Council (in this
section referred to as the `Chairperson').
``(c) Duties.--The Council shall--
``(1) provide recommendations to the Administrator on--
``(A) improving the customer experience for
policyholders under the national flood insurance
program;
``(B) training insurance agents that issue flood
insurance policies; and
``(C) improving the processing and handling of
claims for damage to or loss of property that is
covered by flood insurance; and
``(2) submit to the Administrator an annual report that
includes--
``(A) a description of the activities of the
Council; and
``(B) a summary of recommendations made by the
Council to the Administrator.
``(d) Compensation.--
``(1) In general.--Except as provided in paragraph (2), a
member of the Council shall receive no additional compensation
for serving on the Council.
``(2) Travel expenses.--Each member of the Council may be
allowed travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code, while away from their homes or regular
places of business in performance of services for the Council.
``(e) Meetings and Actions.--
``(1) Meetings.--
``(A) In general.--The Council shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of the members of the
Council.
``(B) Initial meeting.--The Administrator, or a
designee of the Administrator, shall request and
coordinate the initial meeting of the Council.
``(2) Action by majority vote.--The Council may take action
by a vote of the majority of the members.
``(f) Officers.--The Chairperson may appoint officers to assist in
carrying out the duties of the Council under subsection (c).
``(g) Staff.--Upon the request of the Chairperson, the
Administrator may detail, on a nonreimbursable basis, personnel of the
Office of the Flood Insurance Advocate of the Federal Emergency
Management Agency to assist the Council in carrying out the duties of
the Council.
``(h) Powers.--In carrying out this section, the Council may hold
hearings, receive evidence and assistance, provide information, and
conduct research as the Council considers appropriate.
``(i) Report to Congress and OMB.--The Administrator shall submit
to the Committee on Banking, Housing, and Urban Affairs of the Senate,
the Committee on Financial Services of the House of Representatives,
and the Director of the Office of Management and Budget an annual
report on--
``(1) the recommendations made by the Council; and
``(2) any recommendations made by the Council during the
year covered by the report that, as of the date on which the
report is submitted, have been deferred or not acted upon,
together with an explanatory statement with respect to those
recommendations.
``(j) Applicability of the Federal Advisory Committee Act.--Section
14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Council.''.
SEC. 417. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF
PROPERTY.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.), as amended by section 207, is amended by
adding at the end the following:
``SEC. 1328. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF
PROPERTY.
``(a) In General.--After September 30, 2022, no new flood insurance
coverage may be provided under this title for any real property unless
an appropriate public body has imposed, by statute or regulation, a
duty on any seller or lessor of improved real estate to provide to any
purchaser or lessee (with respect to a lease for a term that is not
shorter than 30 days) of the property a property flood hazard
disclosure that the Administrator has determined meets the requirements
of subsection (b).
``(b) Disclosure Requirements.--
``(1) Requirements for sellers.--A property flood hazard
disclosure for the sale of a property shall meet the
requirements of this subsection only if the disclosure--
``(A) is made in writing;
``(B) discloses any actual knowledge of the seller
of any--
``(i) prior physical damage caused by flood
to a structure located on the property;
``(ii) prior insurance claim for a loss
covered under the national flood insurance
program or private flood insurance with respect
to the property;
``(iii) previous notification regarding the
designation of the property as a repetitive
loss structure or severe repetitive loss
structure (as defined in section 1366(h)); and
``(iv) Federal legal obligation to obtain
and maintain flood insurance running with the
property; and
``(C) is delivered by, or on behalf of, the seller
to the purchaser before the purchaser becomes obligated
under any contract to purchase the property.
``(2) Requirements for lessors.--A property flood hazard
disclosure for a rental property with a lease for a term that
is not shorter than 30 days shall meet the requirements of this
subsection only if the disclosure--
``(A) is made in writing;
``(B) discloses any actual knowledge of the
lessor--
``(i) of any Federal legal obligation to
obtain and maintain flood insurance running
with the property;
``(ii) regarding any prior physical damage
caused by flood with respect to the unit being
leased; and
``(iii) of the availability of coverage
under this title for contents located in a
structure on the property; and
``(C) is delivered by, or on behalf of, the lessor
to the lessee before the lessee becomes obligated under
any contract to lease the property.
``(3) Rule of construction.--Nothing in this section may be
construed as preventing a State from adopting disclosure
requirements in addition to the requirements of this
section.''.
(b) Availability of Flood Insurance Coverage.--Section 1305(c) 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 and
inserting a semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) given satisfactory assurance that, not later than
October 1, 2022, property flood hazard disclosure requirements
will have been adopted for the area (or subdivision) that meet
the requirements of section 1328.''.
<all>
National Flood Insurance Program Reauthorization and Reform Act of 2019
#2187 | S Congress #116
Policy Area: Finance and Financial Sector
Subjects: Accounting and auditingAdministrative law and regulatory proceduresAdministrative remediesAdvisory bodiesAlternative dispute resolution, mediation, arbitrationAppropriationsBuilding constructionBusiness recordsCongressional oversightDigital mediaDisaster relief and insuranceEmergency planning and evacuationExecutive agency funding and structureFederal Emergency Management Agency (FEMA)Federal-Indian relationsFloods and storm protectionGeography and mappingGovernment employee pay, benefits, personnel managementGovernment ethics and transparency, public corruption
Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (7/18/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text