1.The table of contents
for this Act is as follows:
Sec. 1. Table of contents.
TITLE I—Flood insurance reform and modernization
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance
Program.
Sec. 105. Availability of insurance for multifamily
properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Minimum deductibles for claims under the National
Flood Insurance Program.
Sec. 113. Considerations in determining chargeable premium
rates.
Sec. 114. Reserve fund.
Sec. 115. Repayment plan for borrowing authority.
Sec. 116. Payment of condominium claims.
Sec. 117. Technical mapping advisory council.
Sec. 118. National flood mapping program.
Sec. 119. Scope of appeals.
Sec. 120. Scientific Resolution Panel.
Sec. 121. Removal of limitation on State contributions for
updating flood maps.
Sec. 122. Coordination.
Sec. 123. Interagency coordination study.
Sec. 124. Nonmandatory participation.
Sec. 125. Notice of flood insurance availability under
RESPA.
Sec. 126. Participation in State disaster claims mediation
programs.
Sec. 127. Additional authority of FEMA to collect information
on claims payments.
Sec. 128. Oversight and expense reimbursements of insurance
companies.
Sec. 129. Mitigation.
Sec. 130. Flood Protection Structure Accreditation Task
Force.
Sec. 131. Flood in progress determinations.
Sec. 132. Clarification of residential and commercial coverage
limits.
Sec. 133. Local data requirement.
Sec. 134. Eligibility for flood insurance for persons residing
in communities that have made adequate progress on the construction,
reconstruction, or improvement of a flood protection system.
Sec. 135. Studies and reports.
Sec. 136. Reinsurance.
Sec. 137. GAO study on business interruption and additional
living expenses coverages.
Sec. 138. Policy disclosures.
Sec. 139. Report on inclusion of building codes in floodplain
management criteria.
Sec. 140. Study of participation and affordability for certain
policyholders.
Sec. 141. Study and report concerning the participation of
Indian tribes and members of Indian tribes in the National Flood Insurance
Program.
Sec. 142. Technical corrections.
TITLE II—Commission on natural catastrophe risk management and
insurance
Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the commission.
Sec. 206. Report.
Sec. 207. Powers of the commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.
IFlood insurance
reform and modernization
101.This title may be cited
as the Flood Insurance Reform and
Modernization Act of 2011
.
102.Congress finds that—
(1)the flood
insurance claims resulting from the hurricane season of 2005 exceeded all
previous claims paid by the National Flood Insurance Program;
(2)in order to pay
the legitimate claims of policyholders from the hurricane season of 2005, the
Federal Emergency Management Agency has borrowed $19,000,000,000 from the
Treasury;
(3)the interest
alone on this debt has been as high as $800,000,000 annually, and that the
Federal Emergency Management Agency has indicated that it will be unable to pay
back this debt;
(4)the flood
insurance program must be strengthened to ensure it can pay future
claims;
(5)while flood
insurance is mandatory in the 100-year floodplain, substantial flooding occurs
outside of existing special flood hazard areas;
(6)events throughout
the country involving areas behind flood control structures, known as
residual risk
areas, have produced catastrophic losses;
(7)although such
flood control structures produce an added element of safety and therefore
lessen the probability that a disaster will occur, they are nevertheless
susceptible to catastrophic loss, even though such areas at one time were not
included within the 100-year floodplain; and
(8)voluntary
participation in the National Flood Insurance Program has been minimal and many
families residing outside the 100-year floodplain remain unaware of the
potential risk to their lives and property.
103.
(a)In this title, the following definitions shall
apply:
(1)The term 100-year floodplain means that
area which is subject to inundation from a flood having a 1-percent chance of
being equaled or exceeded in any given year.
(2)The term 500-year floodplain means that
area which is subject to inundation from a flood having a 0.2-percent chance of
being equaled or exceeded in any given year.
(3)The
term Administrator means the Administrator of the Federal
Emergency Management Agency.
(4)National flood
insurance programThe term National Flood Insurance
Program means the program established under the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.).
(5)The term Write Your Own means the cooperative
undertaking between the insurance industry and the Federal Insurance
Administration which allows participating property and casualty insurance
companies to write and service standard flood insurance policies.
(b)Except as otherwise provided in this title, any terms
used in this title shall have the meaning given to such terms under section
1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 4121).
104.Extension of
National Flood Insurance Program
(a)Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking
2011
and inserting 2016
(b)Section 1319 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4026), is amended by
striking 2011
and inserting 2016
.
105.Availability
of insurance for multifamily propertiesSection 1305 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4012) is amended—
(1)in subsection (b)(2)(A), by inserting
not described in subsection (a) or (d)
after
properties
; and
(2)by adding at the end the following:
(d)Availability of
Insurance for Multifamily Properties
(1)The Administrator shall make flood insurance available to
cover residential properties of more than 4 units. Notwithstanding any other
provision of law, the maximum coverage amount that the Administrator may make
available under this subsection to such residential properties shall be equal
to the coverage amount made available to commercial properties.
(2)Nothing in this subsection shall be construed to
limit the ability of individuals residing in residential properties of more
than 4 units to obtain insurance for the contents and personal articles located
in such
residences.
.
106.Reform of
premium rate structure
(a)To Exclude
Certain Properties From Receiving Subsidized Premium Rates
(1)Section 1307 of the National Flood Insurance Act of 1968
(42 U.S.C. 4014) is amended—
(A)in subsection
(a)(2), by striking ; and
and inserting the following: “, except
that the Administrator shall not estimate rates under this paragraph
for—
(A)any property
which is not the primary residence of an individual;
(B)any severe
repetitive loss property;
(C)any property that
has incurred flood-related damage in which the cumulative amounts of payments
under this title equaled or exceeded the fair market value of such
property;
(D)any business
property; or
(E)any property
which on or after the date of the enactment of the
Flood Insurance Reform and Modernization Act
of 2011 has experienced or sustained—
(i)substantial
damage exceeding 50 percent of the fair market value of such property;
or
(ii)substantial
improvement exceeding 30 percent of the fair market value of such property;
and
;
and
(B)by adding at the
end the following:
(g)No Extension of
Subsidy to New Policies or Lapsed PoliciesThe Administrator
shall not provide flood insurance to prospective insureds at rates less than
those estimated under subsection (a)(1), as required by paragraph (2) of that
subsection, for—
(1)any property not
insured by the flood insurance program as of the date of the enactment of the
Flood Insurance Reform and Modernization Act
of 2011;
(2)any policy under
the flood insurance program that has lapsed in coverage, as a result of the
deliberate choice of the holder of such policy; or
(3)any prospective
insured who refuses to accept any offer for mitigation assistance by the
Administrator (including an offer to relocate), including an offer of
mitigation assistance—
(A)following a major
disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); or
(B)in connection
with—
(i)a
repetitive loss property; or
(ii)a severe
repetitive loss property.
(h)In
this section, the term severe repetitive loss property has the
following meaning:
(1)In the case of a property consisting of 1 to 4
residences, such term means a property that—
(A)is covered under
a contract for flood insurance made available under this title; and
(B)has incurred
flood-related damage—
(i)for which 4 or
more separate claims payments have been made under flood insurance coverage
under this chapter, with the amount of each such claim exceeding $5,000, and
with the cumulative amount of such claims payments exceeding $20,000; or
(ii)for which at
least 2 separate claims payments have been made under such coverage, with the
cumulative amount of such claims exceeding the value of the property.
(2)In the case of a property consisting of more than 4
units, such term shall have such meaning as the Director shall by regulation
provide.
.
(2)The amendments made by paragraph (1) shall become effective
90 days after the date of the enactment of this Act.
(b)Estimates of
premium ratesSection
1307(a)(1)(B) of the National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(B)) is amended—
(1)in clause (ii),
by striking and
at the end;
(2)in clause (iii),
by adding and
at the end; and
(3)by inserting
after clause (iii) the following:
(iv)all costs, as
prescribed by principles and standards of practice in ratemaking adopted by the
American Academy of Actuaries and the Casualty Actuarial Society,
including—
(I)an estimate of
the expected value of future costs,
(II)all costs
associated with the transfer of risk, and
(III)the costs
associated with an individual risk transfer with respect to risk classes, as
defined by the
Administrator,
.
(c)Increase in
Annual Limitation on Premium IncreasesSection 1308(e) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended—
(1)by striking
under this title for any properties within any single
and
inserting the following: “under this title for any properties—
(1)within any
single
;
(2)by striking
10 percent
and inserting 15 percent
; and
(3)by striking the
period at the end and inserting the following: “; and
(2)described in
subparagraphs (A) through (E) of section 1307(a)(2) shall be increased by 25
percent each year, until the average risk premium rate for such properties is
equal to the average of the risk premium rates for properties described under
paragraph
(1).
.
(d)Premium payment
flexibility for new and existing policyholdersSection 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding
at the end the following:
(g)Frequency of
premium collectionWith respect to any chargeable premium rate
prescribed under this section, the Administrator shall provide policyholders
that are not required to escrow their premiums and fees for flood insurance as
set forth under section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a) with the option of paying their premiums either annually or in
more frequent
installments.
.
107.
(a)Special Flood
Hazard AreasNot later than 90 days after the date of the
enactment of this Act, the Administrator shall issue final regulations
establishing a revised definition of areas of special flood hazards for
purposes of the National Flood Insurance Program.
(b)The regulations required by subsection (a) shall require
the expansion of areas of special flood hazards to include areas of residual
risk that are located behind levees or near dams or other flood control
structures, as determined by the Administrator.
(c)Mandatory
participation in national flood insurance program
(1)Any area described in subsection (b) shall be subject to
the mandatory purchase requirements of sections 102 and 202 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).
(2)The
mandatory purchase requirement under paragraph (1) shall have no force or
effect until the mapping of all residual risk areas in the United States that
the Administrator determines essential in order to administer the National
Flood Insurance Program, as required under section 118, are in the maintenance
phase.
(3)In carrying out the mandatory purchase requirement under
paragraph (1), the Administrator shall ensure that the price of flood insurance
policies in areas of residual risk accurately reflects the level of flood
protection provided by any levee, dam, or other flood control structure in such
area, regardless of the certification status of the flood control
structure.
(d)Upon
decertification of any levee, dam, or flood control structure under the
jurisdiction of the Army Corps of Engineers, the Corps shall immediately
provide notice to the Administrator of the National Flood Insurance
Program.
108.Section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by section
106(c), is further amended by adding at the end the following:
(h)Premium
Adjustment To Reflect Current Risk of FloodNotwithstanding
subsection (f), upon the effective date of any revised or updated flood
insurance rate map under this Act, the Flood Disaster Protection Act of 1973,
or the Flood Insurance Reform and
Modernization Act of 2011, any property located in an area that
is participating in the national flood insurance program shall have the risk
premium rate charged for flood insurance on such property adjusted to
accurately reflect the current risk of flood to such property, subject to any
other provision of this Act. Any increase in the risk premium rate charged for
flood insurance on any property that is covered by a flood insurance policy on
the effective date of such an update that is a result of such updating shall be
phased in over a 4-year period, at the rate of 40 percent for the first year
following such effective date and 20 percent for each of the second, third, and
fourth years following such effective date. In the case of any area that was
not previously designated as an area having special flood hazards and that,
pursuant to any issuance, revision, updating, or other change in a flood
insurance map, becomes designated as such an area, the chargeable risk premium
rate for flood insurance under this title that is purchased on or after the
date of enactment of this subsection with respect to any property that is
located within such area shall be phased in over a 4-year period, at the rate
of 40 percent for the first year following the effective date of such issuance,
revision, updating, or change and 20 percent for each of the second, third, and
fourth years following such effective
date.
.
109.State
chartered financial institutionsSection 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
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 by the date that is 6 months after the date of
enactment of the Flood Insurance Reform and Modernization Act of 2011, lending
institutions chartered by a State, and not insured by the Federal Deposit
Insurance Corporation or the National Credit Union Administration, shall be
subject to regulations by that State that are consistent with the requirements
of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a).
.
110.Section 102(f)(5) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is amended—
(1)in the first
sentence, by striking $350
and inserting $2,000
;
and
(2)by striking the
second sentence.
111.Escrow of
flood insurance payments
(a)Section 102(d) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(d)) is amended—
(1)by amending
paragraph (1) to read as follows:
(1)Regulated
lending institutions
(A)Federal
entities responsible for lending regulationsEach Federal entity
for lending regulation (after consultation and coordination with the Federal
Financial Institutions Examination Council) shall, by regulation, direct that
any premiums and fees for flood insurance under the National Flood Insurance
Act of 1968, on any property for which a loan has been made for acquisition or
construction purposes, shall be paid to the mortgage lender, with the same
frequency as payments on the loan are made, for the duration of the loan. Upon
receipt of any premiums or fees, the lender shall deposit such premiums and
fees in an escrow account on behalf of the borrower. Upon receipt of a notice
from the Administrator or the provider of the flood insurance that insurance
premiums are due, the remaining balance of an escrow account shall be paid to
the provider of the flood insurance.
(B)State entities
responsible for lending regulationsIn order to continue to
participate in the flood insurance program, each State shall direct that its
entity or agency with primary responsibility for the supervision of lending
institutions in that State require that premiums and fees for flood insurance
under the National Flood Insurance Act of 1968, on any property for which a
loan has been made for acquisition or construction purposes shall be paid to
the mortgage lender, with the same frequency as payments on the loan are made,
for the duration of the loan. Upon receipt of any premiums or fees, the lender
shall deposit such premiums and fees in an escrow account on behalf of the
borrower. Upon receipt of a notice from such State entity or agency, the
Administrator, or the provider of the flood insurance that insurance premiums
are due, the remaining balance of an escrow account shall be paid to the
provider of the flood insurance.
;
and
(2)by adding at the
end the following:
(6)Notice upon
loan terminationUpon final payment of the mortgage, a regulated
lending institution shall provide notice to the policyholder that flood
insurance coverage may cease with such final payment. The regulated lending
institution shall also provide direction as to how the homeowner may continue
flood insurance coverage after the life of the
loan.
.
(b)The
amendment made by subsection (a)(1) shall apply to any mortgage outstanding or
entered into on or after the expiration of the 2-year period beginning on the
date of the enactment of this Act.
112.Minimum
deductibles for claims under the National Flood Insurance ProgramSection 1312 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4019) is amended—
(1)by striking
The Director is
and inserting the following:
(a)The Administrator
is
; and
(2)by adding at the
end the following:
(b)Minimum annual
deductible
(1)For any structure which is covered by flood insurance
under this title, and on which construction or substantial improvement occurred
on or before December 31, 1974, or before the effective date of an initial
flood insurance rate map published by the Administrator under section 1360 for
the area in which such structure is located, the minimum annual deductible for
damage to such structure shall be—
(A)$1,500, if the
flood insurance coverage for such structure covers loss of, or physical damage
to, such structure in an amount equal to or less than $100,000; and
(B)$2,000, if the
flood insurance coverage for such structure covers loss of, or physical damage
to, such structure in an amount greater than $100,000.
(2)For any structure which is covered by flood insurance
under this title, and on which construction or substantial improvement occurred
after December 31, 1974, or after the effective date of an initial flood
insurance rate map published by the Administrator under section 1360 for the
area in which such structure is located, the minimum annual deductible for
damage to such structure shall be—
(A)$1,000, if the
flood insurance coverage for such structure covers loss of, or physical damage
to, such structure in an amount equal to or less than $100,000; and
(B)$1,250, if the
flood insurance coverage for such structure covers loss of, or physical damage
to, such structure in an amount greater than
$100,000.
.
113.Considerations
in determining chargeable premium ratesSection 1308 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015), as amended by this Act, is amended—
(1)in subsection
(a), by striking , after consultation with
and all that follows
through by regulation
and inserting prescribe, after
providing notice
;
(2)in subsection
(b)—
(A)in paragraph (1),
by striking the period at the end and inserting a semicolon;
(B)in paragraph (2),
by striking the comma at the end and inserting a semicolon;
(C)in paragraph (3),
by striking , and
and inserting a semicolon;
(D)in paragraph (4),
by striking the period and inserting ; and
; and
(E)by adding at the
end the following:
(5)adequate, on the
basis of accepted actuarial principles, to cover the average historical loss
year obligations incurred by the National Flood Insurance
Fund.
;
and
(3)by adding at the
end the following:
(i)For purposes of this section, the calculation of an
average historical loss year
—
(1)includes
catastrophic loss years; and
(2)shall be computed
in accordance with generally accepted actuarial
principles.
.
114.Chapter I of the National
Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting
after section 1310 (42 U.S.C. 4017) the following:
1310A.
(a)Establishment
of Reserve FundIn carrying out the flood insurance program
authorized by this chapter, the Administrator shall establish in the Treasury
of the United States a National Flood Insurance Reserve Fund (in this section
referred to as the Reserve Fund
) which shall—
(1)be an account
separate from any other accounts or funds available to the Administrator;
and
(2)be available for
meeting the expected future obligations of the flood insurance program.
(b)Subject to the phase-in requirements under subsection (d),
the Reserve Fund shall maintain a balance equal to—
(1)1 percent of the
sum of the total potential loss exposure of all outstanding flood insurance
policies in force in the prior fiscal year; or
(2)such higher
percentage as the Administrator determines to be appropriate, taking into
consideration any circumstance that may raise a significant risk of substantial
future losses to the Reserve Fund.
(c)Maintenance of
Reserve Ratio
(1)The Administrator shall have the authority to establish,
increase, or decrease the amount of aggregate annual insurance premiums to be
collected for any fiscal year necessary—
(A)to maintain the
reserve ratio required under subsection (b); and
(B)to achieve such
reserve ratio, if the actual balance of such reserve is below the amount
required under subsection (b).
(2)In
exercising the authority granted under paragraph (1), the Administrator shall
consider—
(A)the expected
operating expenses of the Reserve Fund;
(B)the insurance
loss expenditures under the flood insurance program;
(C)any investment
income generated under the flood insurance program; and
(D)any other factor
that the Administrator determines appropriate.
(3)In
exercising the authority granted under paragraph (1), the Administrator shall
be subject to all other provisions of this Act, including any provisions
relating to chargeable premium rates or annual increases of such rates.
(d)The phase-in requirements under this subsection are
as follows:
(1)Beginning in fiscal year 2012 and not ending until the
fiscal year in which the ratio required under subsection (b) is achieved, in
each such fiscal year the Administrator shall place in the Reserve Fund an
amount equal to not less than 7.5 percent of the reserve ratio required under
subsection (b).
(2)As soon as the ratio required under subsection (b) is
achieved, and except as provided in paragraph (3), the Administrator shall not
be required to set aside any amounts for the Reserve Fund.
(3)If
at any time after the ratio required under subsection (b) is achieved, the
Reserve Fund falls below the required ratio under subsection (b), the
Administrator shall place in the Reserve Fund for that fiscal year an amount
equal to not less than 7.5 percent of the reserve ratio required under
subsection (b).
(e)Limitation on
Reserve RatioIn any given fiscal year, if the Administrator
determines that the reserve ratio required under subsection (b) cannot be
achieved, the Administrator shall submit a report to Congress that—
(1)describes and
details the specific concerns of the Administrator regarding the consequences
of the reserve ratio not being achieved;
(2)demonstrates how
such consequences would harm the long-term financial soundness of the flood
insurance program; and
(3)indicates the
maximum attainable reserve ratio for that particular fiscal
year.
.
115.Repayment plan
for borrowing authoritySection 1309 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4016) is amended by adding at the end the
following:
(c)Upon the exercise
of the authority established under subsection (a), the Administrator shall
transmit a schedule for repayment of such amounts to—
(1)the Secretary of
the Treasury;
(2)the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(3)the Committee on
Financial Services of the House of Representatives.
(d)In connection
with any funds borrowed by the Administrator under the authority established in
subsection (a), the Administrator, beginning 6 months after the date on which
such funds are borrowed, and continuing every 6 months thereafter until such
borrowed funds are fully repaid, shall submit a report on the progress of such
repayment to—
(1)the Secretary of
the Treasury;
(2)the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(3)the Committee on
Financial Services of the House of
Representatives.
.
116.Payment of
condominium claimsSection
1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended
by section 112, is amended by adding at the end the following:
(c)Payment of
Claims to Condominium OwnersThe Administrator may not deny
payment for any damage to or loss of property which is covered by flood
insurance to condominium owners who purchased such flood insurance separate and
apart from the flood insurance purchased by the condominium association in
which such owner is a member, based solely, or in any part, on the flood
insurance coverage of the condominium association or others on the overall
property owned by the condominium
association.
.
117.Technical
mapping advisory council
(a)There
is established a council to be known as the Technical Mapping Advisory Council
(in this section referred to as the Council
).
(b)
(1)The Council shall consist of the Administrator, or the
designee thereof, and 17 additional members to be appointed by the
Administrator or the designee of the Administrator, who shall be—
(A)the Under
Secretary of Commerce for Oceans and Atmosphere (or the designee
thereof);
(B)a member of a
recognized professional surveying association or organization;
(C)a member of a
recognized professional mapping association or organization;
(D)a member of a
recognized professional engineering association or organization;
(E)a member of a
recognized professional association or organization representing flood hazard
determination firms;
(F)a representative
of the United States Geological Survey;
(G)a representative
of a recognized professional association or organization representing State
geographic information;
(H)a representative
of State national flood insurance coordination offices;
(I)a representative
of the Corps of Engineers;
(J)the Secretary of
the Interior (or the designee thereof);
(K)the Secretary of
Agriculture (or the designee thereof);
(L)a member of a
recognized regional flood and storm water management organization;
(M)a representative
of a State agency that has entered into a cooperating technical partnership
with the Administrator and has demonstrated the capability to produce flood
insurance rate maps;
(N)a representative
of a local government agency that has entered into a cooperating technical
partnership with the Administrator and has demonstrated the capability to
produce flood insurance rate maps;
(O)a member of a
recognized floodplain management association or organization;
(P)a member of a
recognized risk management association or organization; and
(Q)a State
mitigation officer.
(2)Members
of the Council shall be appointed based on their demonstrated knowledge and
competence regarding surveying, cartography, remote sensing, geographic
information systems, or the technical aspects of preparing and using flood
insurance rate maps.
(c)The
Council shall—
(1)recommend to the
Administrator how to improve in a cost-effective manner the—
(A)accuracy, general
quality, ease of use, and distribution and dissemination of flood insurance
rate maps and risk data; and
(B)performance
metrics and milestones required to effectively and efficiently map flood risk
areas in the United States;
(2)recommend to the
Administrator mapping standards and guidelines for—
(A)flood insurance
rate maps; and
(B)data accuracy,
data quality, data currency, and data eligibility;
(3)recommend to the
Administrator how to maintain, on an ongoing basis, flood insurance rate maps
and flood risk identification;
(4)recommend
procedures for delegating mapping activities to State and local mapping
partners;
(5)recommend to the
Administrator and other Federal agencies participating in the Council—
(A)methods for
improving interagency and intergovernmental coordination on flood mapping and
flood risk determination; and
(B)a funding
strategy to leverage and coordinate budgets and expenditures across Federal
agencies; and
(6)submit an annual
report to the Administrator that contains—
(A)a description of
the activities of the Council;
(B)an evaluation of
the status and performance of flood insurance rate maps and mapping activities
to revise and update flood insurance rate maps, as required under section 118;
and
(C)a summary of
recommendations made by the Council to the Administrator.
(d)Future
conditions risk assessment and modeling report
(1)The Council shall consult with scientists and technical
experts, other Federal agencies, States, and local communities to—
(A)develop
recommendations on how to—
(i)ensure that flood
insurance rate maps incorporate the best available climate science to assess
flood risks; and
(ii)ensure that the
Federal Emergency Management Agency uses the best available methodology to
consider the impact of—
(I)the rise in the
sea level; and
(II)future
development on flood risk; and
(B)not later than 1
year after the date of the enactment of this Act, prepare written
recommendations in a future conditions risk assessment and modeling report and
to submit such recommendations to the Administrator.
(2)Responsibility
of the AdministratorThe Administrator, as part of the ongoing
program to review and update National Flood Insurance Program rate maps under
section 118, shall incorporate any future risk assessment submitted under
paragraph (1)(B) in any such revision or update.
(e)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
).
(f)To
ensure that the Council's recommendations are consistent, to the maximum extent
practicable, with national digital spatial data collection and management
standards, the Chairperson shall consult with the Chairperson of the Federal
Geographic Data Committee (established pursuant to Office of Management and
Budget Circular A–16).
(g)Members
of the Council shall receive no additional compensation by reason of their
service on the Council.
(h)
(1)The Council shall meet not less frequently than twice
each year at the request of the Chairperson or a majority of its members, and
may take action by a vote of the majority of the members.
(2)The Administrator, or a person designated by the
Administrator, shall request and coordinate the initial meeting of the
Council.
(i)The
Chairperson may appoint officers to assist in carrying out the duties of the
Council under subsection (c).
(j)
(1)Upon the request of the Chairperson, the Administrator may
detail, on a nonreimbursable basis, personnel of the Federal Emergency
Management Agency to assist the Council in carrying out its duties.
(2)Staff of other
Federal agenciesUpon request of the Chairperson, any other
Federal agency that is a member of the Council may detail, on a nonreimbursable
basis, personnel to assist the Council in carrying out its duties.
(k)In
carrying out this section, the Council may hold hearings, receive evidence and
assistance, provide information, and conduct research, as it considers
appropriate.
(l)The Administrator, on an annual basis, shall report to
the Committee on Banking, Housing, and Urban Affairs of the Senate, the
Committee on Financial Services of the House of Representatives, and the Office
of Management and Budget on the—
(1)recommendations
made by the Council;
(2)actions taken by
the Federal Emergency Management Agency to address such recommendations to
improve flood insurance rate maps and flood risk data; and
(3)any
recommendations made by the Council that have been deferred or not acted upon,
together with an explanatory statement.
118.National flood
mapping program
(a)Reviewing,
updating, and maintaining mapsThe Administrator, in coordination
with the Technical Mapping Advisory Council established under section 117,
shall establish an ongoing program under which the Administrator shall review,
update, and maintain National Flood Insurance Program rate maps in accordance
with this section.
(b)
(1)In carrying out the program established under subsection
(a), the Administrator shall—
(A)identify, review,
update, maintain, and publish National Flood Insurance Program rate maps with
respect to—
(i)all
populated areas and areas of possible population growth located within the
100-year floodplain;
(ii)all populated
areas and areas of possible population growth located within the 500-year
floodplain;
(iii)areas of
residual risk, including areas that are protected by levees, dams, and other
flood control structures;
(iv)areas that could
be inundated as a result of the failure of a levee, dam, or other flood control
structure; and
(v)the
level of protection provided by flood control structures;
(B)establish or
update flood-risk zone data in all such areas, and make estimates with respect
to the rates of probable flood caused loss for the various flood risk zones for
each such area; and
(C)use, in
identifying, reviewing, updating, maintaining, or publishing any National Flood
Insurance Program rate map required under this section or under the National
Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), the most accurate
topography and elevation data available.
(2)Each map updated under this section shall—
(A)assess the
accuracy of current ground elevation data used for hydrologic and hydraulic
modeling of flooding sources and mapping of the flood hazard and wherever
necessary acquire new ground elevation data utilizing the most up-to-date
geospatial technologies in accordance with guidelines and specifications of the
Federal Emergency Management Agency; and
(B)develop National
Flood Insurance Program flood data on a watershed basis—
(i)to
provide the most technically effective and efficient studies and hydrologic and
hydraulic modeling; and
(ii)to
eliminate, to the maximum extent possible, discrepancies in base flood
elevations between adjacent political subdivisions.
(3)In updating maps under this section, the Administrator
shall include—
(A)any relevant
information on coastal inundation from—
(i)an
applicable inundation map of the Corps of Engineers; and
(ii)data of the
National Oceanic and Atmospheric Administration relating to storm surge
modeling;
(B)any relevant
information of the United States Geological Survey on stream flows, watershed
characteristics, and topography that is useful in the identification of flood
hazard areas, as determined by the Administrator;
(C)any relevant
information on land subsidence, coastal erosion areas, and other floor-related
hazards;
(D)any relevant
information or data of the National Oceanic and Atmospheric Administration and
the United States Geological Survey relating to the best available climate
science and the potential for future inundation from sea level rise, increased
precipitation, and increased intensity of hurricanes due to global warming;
and
(E)any other
relevant information as may be recommended by the Technical Mapping Advisory
Committee.
(c)In
updating and maintaining maps under this section, the Administrator
shall—
(1)establish
standards to—
(A)ensure that maps
are adequate for—
(i)flood risk
determinations; and
(ii)use by State and
local governments in managing development to reduce the risk of flooding;
and
(B)facilitate
identification and use of consistent methods of data collection and analysis by
the Administrator, in conjunction with State and local governments, in
developing maps for communities with similar flood risks, as determined by the
Administrator; and
(2)publish maps in a
format that is—
(A)digital
geospatial data compliant;
(B)compliant with
the open publishing and data exchange standards established by the Open
Geospatial Consortium; and
(C)aligned with
official data defined by the National Geodetic Survey.
(d)Communication
and outreach
(1)The Administrator shall—
(A)work to enhance
communication and outreach to States, local communities, and property owners
about the effects—
(i)of
any potential changes to National Flood Insurance Program rate maps that may
result from the mapping program required under this section; and
(ii)that any such
changes may have on flood insurance purchase requirements; and
(B)engage with local
communities to enhance communication and outreach to the residents of such
communities on the matters described under subparagraph (A).
(2)The communication and outreach activities required
under paragraph (1) shall include—
(A)notifying
property owners when their properties become included in, or when they are
excluded from, an area covered by the mandatory flood insurance purchase
requirement under section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a);
(B)educating
property owners regarding the flood risk and reduction of this risk in their
community, including the continued flood risks to areas that are no longer
subject to the flood insurance mandatory purchase requirement;
(C)educating
property owners regarding the benefits and costs of maintaining or acquiring
flood insurance, including, where applicable, lower-cost preferred risk
policies under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et
seq.) for such properties and the contents of such properties;
(D)educating
property owners about flood map revisions and the process available to such
owners to appeal proposed changes in flood elevations through their community;
and
(E)encouraging
property owners to maintain or acquire flood insurance coverage.
(e)Authorization
of appropriationsThere is authorized to be appropriated to the
Administrator to carry out this section $400,000,000 for each of fiscal years
2012 through 2016.
119.Section 1363 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended—
(1)in subsection
(a)—
(A)in the heading,
by inserting and
designations of special flood hazard areas
after
elevation
determinations
;
(B)by inserting
and designating special flood hazard areas
after flood
elevations
; and
(C)by striking
such determinations
and inserting such determinations and
designations
; and
(2)in subsection
(b)—
(A)in the heading,
by inserting and
designations of special flood hazard areas
after
elevation
determinations
;
(B)in the first
sentence, by inserting and designation of special flood hazard
areas
after flood elevation determinations
; and
(C)by amending the
third sentence to read as follows: The sole grounds for appeal shall be
the possession of knowledge or information indicating that (1) the elevations
being proposed by the Administrator with respect to an identified area having
special flood hazards are scientifically or technically incorrect, or (2) the
designation of an identified special flood hazard area is scientifically or
technically incorrect.
120.Scientific
Resolution Panel
(a)The National Flood Insurance Act of 1968
(42 U.S.C. 4011 et seq.) is amended by inserting after section 1363 (42 U.S.C.
4104) the following:
1363A.Scientific
Resolution Panel
(a)
(1)Pursuant to the authority provided under section 1363(e),
the Administrator shall make available an independent review panel, to be known
as the Scientific Resolution Panel, to any community—
(A)that has—
(i)filed a timely
map appeal in accordance with section 1363;
(ii)completed 60
days of consultation with the Federal Emergency Management Agency on the
appeal; and
(iii)not allowed
more than 120 days, or such longer period as may be provided by the
Administrator by waiver, to pass since the end of the appeal period; or
(B)that has received
an unsatisfactory ruling under the map revision process established pursuant to
section 1360(f).
(2)Appeals by
owners and lesseesIf a community and an owner or lessee of real
property within the community appeal a proposed determination of a flood
elevation under section 1363(b), upon the request of the community—
(A)the owner or
lessee shall submit scientific and technical data relating to the appeals to
the Scientific Resolution Panel; and
(B)the Scientific
Resolution Panel shall make a determination with respect to the appeals in
accordance with subsection (c).
(3)For
purposes of paragraph (1)(B), an unsatisfactory ruling
means
that a community—
(A)received a
revised Flood Insurance Rate Map from the Federal Emergency Management Agency,
via a Letter of Final Determination, after September 30, 2008 and prior to the
date of enactment of this section;
(B)has subsequently
applied for a Letter of Map Revision or Physical Map Revision with the Federal
Emergency Management Agency; and
(C)has received an
unfavorable ruling on their request for a map revision.
(b)The
Scientific Resolution Panel made available under subsection (a) shall consist
of 5 members with expertise that relate to the creation and study of flood
hazard maps and flood insurance. The Scientific Resolution Panel may include
representatives from Federal agencies not involved in the mapping study in
question and from other impartial experts. Employees of the Federal Emergency
Management Agency may not serve on the Scientific Resolution Panel.
(c)
(1)Following deliberations, and not later than 90 days after
its formation, the Scientific Resolution Panel shall issue a determination of
resolution of the dispute. Such determination shall set forth recommendations
for the base flood elevation determination or the determination of an area
having special flood hazards that shall be reflected in the Flood Insurance
Rate Maps.
(2)The
determination of the Scientific Resolution Panel shall be based on—
(A)data previously
provided to the Administrator by the community, and, in the case of a dispute
submitted under subsection (a)(2), an owner or lessee of real property in the
community; and
(B)data provided by
the Administrator.
(3)No alternative
determinations permissibleThe Scientific Resolution
Panel—
(A)shall provide a
determination of resolution of a dispute that—
(i)is either in
favor of the Administrator or in favor of the community on each distinct
element of the dispute; or
(ii)in the case of a
dispute submitted under subsection (a)(2), is in favor of the Administrator, in
favor of the community, or in favor of the owner or lessee of real property in
the community on each distinct element of the dispute; and
(B)may not offer as
a resolution any other alternative determination.
(4)
(A)The
recommendations of the Scientific Resolution Panel shall be binding on all
appellants and not subject to further judicial review unless the Administrator
determines that implementing the determination of the panel would—
(i)pose a
significant threat due to failure to identify a substantial risk of special
flood hazards; or
(ii)violate
applicable law.
(B)Written
justification not to enforceIf the Administrator elects not to
implement the determination of the Scientific Resolution Panel pursuant to
subparagraph (A), then not later than 60 days after the issuance of the
determination, the Administrator shall issue a written justification explaining
such election.
(C)Appeal of
determination not to enforceIf the Administrator elects not to
implement the determination of the Scientific Resolution Panel pursuant to
subparagraph (A), the community may appeal the determination of the
Administrator as provided for under section 1363(g).
(d)Maps used for
insurance and mandatory purchase requirementsWith respect to any
community that has a dispute that is being considered by the Scientific
Resolution Panel formed pursuant to this subsection, the Federal Emergency
Management Agency shall ensure that for each such community that—
(1)the Flood
Insurance Rate Map described in the most recently issued Letter of Final
Determination shall be in force and effect with respect to such community;
and
(2)flood insurance
shall continue to be made available to the property owners and residents of the
participating
community.
.
(b)
(1)Section 1363(e) of the National Flood Insurance Act of
1968 (42 U.S.C. 4104(e)) is amended by striking an independent
scientific body or appropriate Federal agency for advice
and inserting
the Scientific Resolution Panel provided for in section
1363A
.
(2)The first sentence of section 1363(g) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) is amended by striking
Any appellant
and inserting Except as provided in section
1363A, any appellant
.
121.Removal of
limitation on State contributions for updating flood mapsSection 1360(f)(2) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101(f)(2)) is amended by striking ,
but which may not exceed 50 percent of the cost of carrying out the requested
revision or update
.
122.
(a)Interagency
budget crosscut and coordination report
(1)The Secretary of Homeland Security, the Administrator,
the Director of the Office of Management and Budget, and the heads of each
Federal department or agency carrying out activities under sections 118 and 119
shall work together to ensure that flood risk determination data and geospatial
data are shared among Federal agencies in order to coordinate the efforts of
the Nation to reduce its vulnerability to flooding hazards.
(2)Not
later than 30 days after the submission of the budget of the United States
Government by the President to Congress, the Director of the Office of
Management and Budget, in coordination with the Federal Emergency Management
Agency, the United States Geological Survey, the National Oceanic and
Atmospheric Administration, the Army Corps of Engineers, and other Federal
agencies, as appropriate, shall submit to the appropriate authorizing and
appropriating committees of the Senate and the House of Representatives an
interagency budget crosscut and coordination report, certified by the Secretary
or head of each such agency, that—
(A)contains an
interagency budget crosscut report that displays relevant sections of the
budget proposed for each of the Federal agencies working on flood risk
determination data and digital elevation models, including any planned
interagency or intra-agency transfers; and
(B)describes how the
efforts aligned with such sections complement one another.
(b)Duties of the
AdministratorIn carrying out sections 118 and 119, the
Administrator shall—
(1)participate,
pursuant to section 216 of the E–Government Act of 2002 (44 U.S.C. 3501 note),
in the establishment of such standards and common protocols as are necessary to
assure the interoperability of geospatial data for all users of such
information;
(2)coordinate with,
seek assistance and cooperation of, and provide a liaison to the Federal
Geographic Data Committee pursuant to the Office of Management and Budget
Circular A–16 and Executive Order 12906 (43 U.S.C. 1457 note; relating to the
National Spatial Data Infrastructure) for the implementation of and compliance
with such standards;
(3)integrate with,
leverage, and coordinate funding of, to the maximum extent practicable, the
current flood mapping activities of each unit of State and local
government;
(4)integrate with,
leverage, and coordinate, to the maximum extent practicable, the current
geospatial activities of other Federal agencies and units of State and local
government; and
(5)develop a funding
strategy to leverage and coordinate budgets and expenditures, and to maintain
or establish joint funding and other agreement mechanisms with other Federal
agencies and units of State and local government to share in the collection and
utilization of geospatial data among all governmental users.
123.Interagency
coordination study
(a)The Administrator shall enter into a contract with the
National Academy of Public Administration to conduct a study on how the Federal
Emergency Management Agency—
(1)should improve
interagency and intergovernmental coordination on flood mapping, including a
funding strategy to leverage and coordinate budgets and expenditures;
and
(2)can establish
joint funding mechanisms with other Federal agencies and units of State and
local government to share the collection and utilization of data among all
governmental users.
(b)Not
later than 180 days after the date of the enactment of this title, the National
Academy of Public Administration shall report the findings of the study
required under subsection (a) to—
(1)the Committee on
Banking, Housing, and Urban Affairs of the Senate;
(2)the Committee on
Financial Services of the House of Representatives;
(3)the Committee on
Appropriations of the Senate; and
(4)the Committee on
Appropriations of the House of Representatives.
124.Nonmandatory
participation
(a)Nonmandatory
Participation in National Flood Insurance Program for 500-Year
FloodplainAny area located within the 500-year floodplain shall
not be subject to the mandatory purchase requirements of sections 102 or 202 of
the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a and 4106).
(b)
(1)In carrying out the National Flood Insurance
Program, the Administrator shall provide notice to any community located in an
area within the 500-year floodplain.
(2)The notice required under paragraph (1) shall be made not
later than 6 months after the date of completion of the initial mapping of the
500-year floodplain, as required under section 118.
(3)
(A)Regulated
lending institutionsEach Federal or State entity for lending
regulation (after consultation and coordination with the Federal Financial
Institutions Examination Council) shall, by regulation, require regulated
lending institutions, as a condition of making, increasing, extending, or
renewing any loan secured by property located in an area within the 500-year
floodplain, to notify the purchaser or lessee (or obtain satisfactory
assurances that the seller or lessor has notified the purchaser or lessee) and
the servicer of the loan that such property is located in an area within the
500-year floodplain, in a manner that is consistent with, and substantially
identical to, the notice required under section 1364(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4104a(a)(1)).
(B)Federal or
State agency lendersEach Federal or State agency lender shall,
by regulation, require notification in the same manner as provided under
subparagraph (A) with respect to any loan that is made by a Federal or State
agency lender and secured by property located in an area within the 500-year
floodplain.
(C)Penalty for
noncomplianceAny regulated lending institution or Federal or
State agency lender that fails to comply with the notice requirements
established by this paragraph shall be subject to the penalties prescribed
under section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(f)(5)).
125.Notice of
flood insurance availability under RESPASection 5(b) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(b)), as amended by section 1450 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203;
124 Stat. 2174), is amended by adding at the end the following:
(14)An explanation
of flood insurance and the availability of flood insurance under the National
Flood Insurance Program, whether or not the real estate is located in an area
having special flood
hazards.
.
126.Participation
in State disaster claims mediation programsChapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1313
(42 U.S.C. 4020) the following:
1314.Participation
in State disaster claims mediation programs
(a)Requirement To
ParticipateIn the case of the occurrence of a major disaster, as
defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122), that may have resulted in flood damage covered
under the flood insurance program established under this chapter and other
personal lines residential property insurance coverage offered by a State
regulated insurer, upon a request made by the insurance commissioner of a State
(or such other official responsible for regulating the business of insurance in
the State) for the participation of representatives of the Administrator in a
program sponsored by such State for nonbinding mediation of insurance claims
resulting from a major disaster, the Administrator shall cause representatives
of the flood insurance program to participate in such a State program where
claims under the flood insurance program are involved to expedite settlement of
flood damage claims resulting from such disaster.
(b)In satisfying the requirements of subsection (a),
the Administrator shall require that each representative of the
Administrator—
(1)be certified for
purposes of the flood insurance program to settle claims against such program
resulting from such disaster in amounts up to the limits of policies under such
program;
(2)attend
State-sponsored mediation meetings regarding flood insurance claims resulting
from such disaster at such times and places as may be arranged by the
State;
(3)participate in
good faith negotiations toward the settlement of such claims with policyholders
of coverage made available under the flood insurance program; and
(4)finalize the
settlement of such claims on behalf of the flood insurance program with such
policyholders.
(c)Representatives
of the Administrator shall at all times coordinate their activities with
insurance officials of the State and representatives of insurers for the
purposes of consolidating and expediting settlement of claims under the
national flood insurance program resulting from such disaster.
(d)Qualifications
of MediatorsEach State mediator participating in State-sponsored
mediation under this section shall be—
(1)(A)a member in good
standing of the State bar in the State in which the mediation is to occur with
at least 2 years of practical experience; and
(B)an active member of such bar for at
least 1 year prior to the year in which such mediator's participation is
sought; or
(2)a retired trial
judge from any United States jurisdiction who was a member in good standing of
the bar in the State in which the judge presided for at least 5 years prior to
the year in which such mediator's participation is sought.
(e)Mediation
Proceedings and Documents PrivilegedAs a condition of
participation, all statements made and documents produced pursuant to
State-sponsored mediation involving representatives of the Administrator shall
be deemed privileged and confidential settlement negotiations made in
anticipation of litigation.
(f)Liability,
Rights, or Obligations Not AffectedParticipation in
State-sponsored mediation, as described in this section does not—
(1)affect or expand
the liability of any party in contract or in tort; or
(2)affect the rights
or obligations of the parties, as established—
(A)in any regulation
issued by the Administrator, including any regulation relating to a standard
flood insurance policy;
(B)under this Act;
and
(C)under any other
provision of Federal law.
(g)Exclusive
Federal JurisdictionParticipation in State-sponsored mediation
shall not alter, change, or modify the original exclusive jurisdiction of
United States courts, as set forth in this Act.
(h)Nothing in this section shall be construed to require
the Administrator or a representative of the Administrator to pay additional
mediation fees relating to flood insurance claims associated with a
State-sponsored mediation program in which such representative of the
Administrator participates.
(i)In
the case of the occurrence of a major disaster that results in flood damage
claims under the national flood insurance program and that does not result in
any loss covered by a personal lines residential property insurance
policy—
(1)this section
shall not apply; and
(2)the provisions of
the standard flood insurance policy under the national flood insurance program
and the appeals process established under section 205 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011
note) and the regulations issued pursuant to such section shall apply
exclusively.
(j)Representatives
of the AdministratorFor purposes of this section, the term
representatives of the Administrator means representatives of the
national flood insurance program who participate in the appeals process
established under section 205 of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 (42 U.S.C. 4011
note).
.
127.Additional
authority of FEMA to collect information on claims payments
(a)The Administrator shall collect, from property and
casualty insurance companies that are authorized by the Administrator to
participate in the Write Your Own program any information and data needed to
determine the accuracy of the resolution of flood claims filed on any property
insured with a standard flood insurance policy obtained under the program that
was subject to a flood.
(b)Type of
Information To Be CollectedThe information and data to be
collected under subsection (a) may include—
(1)any adjuster
estimates made as a result of flood damage, and if the insurance company also
insures the property for wind damage—
(A)any adjuster
estimates for both wind and flood damage;
(B)the amount paid
to the property owner for wind and flood claims;
(C)the total amount
paid to the policyholder for damages as a result of the event that caused the
flooding and other losses;
(2)any amounts paid
to the policyholder by the insurance company for damages to the insured
property other than flood damages; and
(3)the total amount
paid to the policyholder by the insurance company for all damages incurred to
the insured property as a result of the flood.
128.Oversight and
expense reimbursements of insurance companies
(a)Submission of
Biennial Reports
(1)Not later than 20 days after the date of the
enactment of this Act, each property and casualty insurance company that is
authorized by the Administrator to participate in the Write Your Own program
shall submit to the Administrator any biennial report required by the Federal
Emergency Management Agency to be prepared in the prior 5 years by such
company.
(2)Not later than 10 days after the submission of the biennial
reports under paragraph (1), the Administrator shall submit all such reports to
the Comptroller General of the United States.
(3)Notice to
congress of failure to complyThe Administrator shall notify and
report to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives on any
property and casualty insurance company participating in the Write Your Own
program that failed to submit its biennial reports as required under paragraph
(1).
(4)A property and casualty insurance company that is
authorized by the Administrator to participate in the Write Your Own program
which fails to comply with the reporting requirement under this subsection or
the requirement under section 62.23(j)(1) of title 44, Code of Federal
Regulations (relating to biennial audit of the flood insurance financial
statements) shall be subject to a civil penalty in an amount equal to $1,000
per day for each day that the company remains in noncompliance with either such
requirement.
(b)Methodology To
Determine Reimbursed ExpensesNot later than 180 days after the
date of the enactment of this Act, the Administrator shall develop a
methodology for determining the appropriate amounts that participating property
and casualty insurance companies should be reimbursed for selling, writing, and
servicing flood insurance policies and adjusting flood insurance claims on
behalf of the National Flood Insurance Program. The methodology shall be
developed using actual expense data for the flood insurance line and can be
derived from—
(1)flood insurance
expense data produced by participating property and casualty insurance
companies;
(2)flood insurance
expense data collected by the National Association of Insurance Commissioners;
or
(3)a combination of
the methodologies described in paragraphs (1) and (2).
(c)Submission of
Expense ReportsTo develop the methodology established under
subsection (b), the Administrator may require each property and casualty
insurance company participating in the Write Your Own program to submit a
report to the Administrator, in a format determined by the Administrator and
within 60 days of the request, that details the expense levels of each such
company for selling, writing, and servicing standard flood insurance policies
and adjusting and servicing claims.
(d)FEMA Rulemaking
on Reimbursement of Expenses Under the WYO ProgramNot later than
12 months after the date of the enactment of this Act, the Administrator shall
conduct a rulemaking proceeding to formulate revised expense reimbursements to
property and casualty insurance companies participating in the Write Your Own
program for their expenses (including their operating and administrative
expenses for adjustment of claims) in selling, writing, and servicing standard
flood insurance policies, including how such companies shall be reimbursed in
both catastrophic and noncatastrophic years. Such reimbursements shall be
structured to ensure reimbursements track the actual expenses, including
standard business costs and operating expenses, of such companies as close as
practicably possible.
(e)Report of the
AdministratorNot later than 60 days after the effective date of
any final rule established pursuant to subsection (d), 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 containing—
(1)the specific
rationale and purposes of such rule;
(2)the reasons for
the adoption of the policies contained in such rule; and
(3)the degree to
which such rule accurately represents the true operating costs and expenses of
property and casualty insurance companies participating in the Write Your Own
program.
(f)GAO Study and
Report on Expenses of WYO Program
(1)Not
later than 180 days after the effective date of the final rule established
pursuant to subsection (d), the Comptroller General of the United States
shall—
(A)conduct a study
on the efficacy, adequacy, and sufficiency of the final rules established
pursuant to subsection (d); and
(B)report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the findings
of the study conducted under subparagraph (A).
(2)In conducting the study and report required under
paragraph (1), the Comptroller General—
(A)may use any
previous findings, studies, or reports that the Comptroller General previously
completed on the Write Your Own program;
(B)shall determine
if—
(i)the
final rules established pursuant to subsection (d) allow the Federal Emergency
Management Agency to access adequate information regarding the actual expenses
of property and casualty insurance companies participating in the Write Your
Own program; and
(ii)the actual
reimbursements paid out under the final rule established in subsection (d)
accurately reflect the expenses reported by property and casualty insurance
companies participating in the Write Your Own program, including the standard
business costs and operating expenses of such companies; and
(C)shall analyze the
effect of such rules on the level of participation of property and casualty
insurers in the Write Your Own program.
129.
(a)Mitigation
assistance grantsSection 1366 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104c) is amended—
(1)by striking
subsections (b), (d), (f), (g), (h), (k), and (m);
(2)by redesignating
subsections (c), (e), (i), and (j) as subsections (b), (c), (e), and (f),
respectively;
(3)in subsection
(a), by striking the last sentence and inserting the
following:
Such financial assistance shall be
made available—(1)to States and
communities in the form of grants under this section for carrying out
mitigation activities;
(2)to States and
communities in the form of grants under this section for carrying out
mitigation activities that reduce flood damage to severe repetitive loss
structures; and
(3)to property
owners in the form of direct grants under this section for carrying out
mitigation activities that reduce flood damage to individual structures for
which 2 or more claim payments for losses have been made under flood insurance
coverage under this title if the Administrator, after consultation with the
State and community, determines that neither the State nor community in which
such a structure is located has the capacity to manage such
grants.
;
(4)in subsection
(b), as so redesignated, in the first sentence—
(A)by striking
and provides protection against
and inserting provides
for reduction of
; and
(B)by inserting
before the period at the end the following: , and may be included in a
multi-hazard mitigation plan
;
(5)in subsection
(c), as so redesignated—
(A)in paragraph (1),
by striking (1) Use of
amounts.—
and all that follows through the end of the
first sentence and inserting the following:
(1)Requirement of
consistency with approved mitigation planAmounts provided under
this section may be used only for mitigation activities that are consistent
with mitigation plans that are approved by the Administrator and identified
under paragraph
(4).
;
(B)by striking
paragraphs (2), (3), and (4) and inserting the following new paragraphs:
(2)Requirements of
technical feasibility, cost effectiveness, and interest of
nfifThe Administrator may approve only mitigation activities
that the Administrator determines are technically feasible and cost-effective
and in the interest of, and represent savings to, the National Flood Insurance
Fund. In making such determinations, the Administrator shall take into
consideration recognized ancillary benefits.
(3)Priority for
mitigation assistanceIn providing grants under this section for
mitigation activities, the Administrator shall give priority for funding to
activities that the Administrator determines will result in the greatest
savings to the National Flood Insurance Fund, including activities for—
(A)severe repetitive
loss structures;
(B)repetitive loss
structures; and
(C)other subsets of
structures as the Administrator may
establish.
;
(C)by redesignating
paragraph (5) as paragraph (4);
(D)in paragraph (4),
as so redesignated—
(i)in
the matter preceding subparagraph (A), by striking The Director
and all that follows through Such activities may
and inserting
Eligible activities under a mitigation plan may
;
(ii)by
striking subparagraphs (E) and (H);
(iii)by
redesignating subparagraphs (D), (F), and (G) as subparagraphs (E), (G), and
(H), respectively;
(iv)by
inserting after subparagraph (C) the following new subparagraph:
(D)elevation,
relocation, or floodproofing of utilities (including equipment that serve
structures);
;
(v)by
inserting after subparagraph (E), as so redesignated, the following new
subparagraph:
(F)the development
or update of mitigation plans by a State or community which meet the planning
criteria established by the Administrator, except that the amount from grants
under this section that may be used under this subparagraph may not exceed
$50,000 for any mitigation plan of a State or $25,000 for any mitigation plan
of a
community;
;
(vi)in
subparagraph (H); as so redesignated, by striking and
at the
end; and
(vii)by adding at
the end the following new subparagraphs:
(I)other mitigation
activities not described in subparagraphs (A) through (G) or the regulations
issued under subparagraph (H), that are described in the mitigation plan of a
State or community; and
(J)without regard to
the requirements under subsections (d)(1) and (d)(2), and if the State applied
for and was awarded at least $1,000,000 in grants available under this section
in the prior fiscal year, technical assistance to communities to identify
eligible activities, to develop grant applications, and to implement grants
awarded under this section, not to exceed $50,000 to any one State in any
fiscal
year.
;
(E)by adding at the
end the following new paragraph:
(5)Eligibility of
demolition and rebuilding of propertiesThe Administrator shall
consider as an eligible activity the demolition and rebuilding of properties to
at least base flood elevation or greater, if required by the Administrator or
if required by any State regulation or local ordinance, and in accordance with
criteria established by the
Administrator.
;
and
(6)by inserting
after subsection (c), as so redesignated, the following new subsection:
(d)The Administrator may provide grants for eligible
mitigation activities as follows:
(1)Severe
repetitive loss structuresIn the case of mitigation activities
to severe repetitive loss structures, in an amount up to 100 percent of all
eligible costs.
(2)Repetitive loss
structuresIn the case of mitigation activities to repetitive
loss structures, in an amount up to 90 percent of all eligible costs.
(3)Other
mitigation activitiesIn the case of all other mitigation
activities, in an amount up to 75 percent of all eligible
costs.
;
(7)in subsection
(e)(2), as so redesignated—
(A)by striking
certified under subsection (g)
and inserting required
under subsection (d)
; and
(B)by striking
3 times the amount
and inserting the
amount
;
(8)in subsection
(f)(1), as so redesignated, by striking Riegle Community Development and
Regulatory Improvement Act of 1994
and inserting Flood Insurance Reform and Modernization Act of
2011
; and
(9)by adding at the
end the following new subsections:
(g)Failure To make
grant award within 5 yearsFor any application for a grant under
this section for which the Administrator fails to make a grant award within 5
years of the date of the application, the grant application shall be considered
to be denied and any funding amounts allocated for such grant applications
shall remain in the National Flood Mitigation Fund under section 1367 of this
title and shall be made available for grants under this section.
(h)For
purposes of this section, the following definitions shall apply:
(1)The
term community means—
(A)a political
subdivision that—
(i)has zoning and
building code jurisdiction over a particular area having special flood hazards;
and
(ii)is participating
in the national flood insurance program; or
(B)a political
subdivision of a State, or other authority, that is designated by political
subdivisions, all of which meet the requirements of subparagraph (A), to
administer grants for mitigation activities for such political
subdivisions.
(2)Repetitive loss
structureThe term repetitive loss structure has the
meaning given such term in section 1370.
(3)Severe
repetitive loss structureThe term severe repetitive loss
structure means a structure that—
(A)is covered under
a contract for flood insurance made available under this title; and
(B)has incurred
flood-related damage—
(i)for which 4 or
more separate claims payments have been made under flood insurance coverage
under this title, with the amount of each such claim exceeding $5,000, and with
the cumulative amount of such claims payments exceeding $20,000; or
(ii)for which at
least 2 separate claims payments have been made under such coverage, with the
cumulative amount of such claims exceeding the value of the insured
structure.
.
(b)Elimination of
grants program for repetitive insurance claims propertiesChapter
I of the National Flood Insurance Act of 1968 is amended by striking section
1323 (42 U.S.C. 4030).
(c)Elimination of
pilot program for mitigation of severe repetitive loss
propertiesChapter III of the National Flood Insurance Act of
1968 is amended by striking section 1361A (42 U.S.C. 4102a).
(d)National flood
insurance fundSection 1310(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4017(a)) is amended—
(1)in paragraph (6),
by inserting and
after the semicolon;
(2)in paragraph (7),
by striking the semicolon and inserting a period; and
(3)by striking
paragraphs (8) and (9).
(e)National flood
mitigation fundSection 1367 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4104d) is amended—
(1)in subsection
(b)—
(A)by striking
paragraph (1) and inserting the following new paragraph:
(1)in each fiscal
year, amounts from the National Flood Insurance Fund not to exceed $90,000,000
and to remain available until expended, of which—
(A)not more than
$40,000,000 shall be available pursuant to subsection (a) of this section for
assistance described in section 1366(a)(1);
(B)not more than
$40,000,000 shall be available pursuant to subsection (a) of this section for
assistance described in section 1366(a)(2); and
(C)not more than
$10,000,000 shall be available pursuant to subsection (a) of this section for
assistance described in section
1366(a)(3);
;
and
(B)in paragraph (3),
by striking section 1366(i)
and inserting section
1366(e)
;
(2)in subsection
(c), by striking sections 1366 and 1323
and inserting
section 1366
;
(3)by redesignating
subsections (d) and (e) as subsections (f) and (g), respectively; and
(4)by inserting
after subsection (c) the following new subsections:
(d)Prohibition on
offsetting collectionsNotwithstanding any other provision of
this title, amounts made available pursuant to this section shall not be
subject to offsetting collections through premium rates for flood insurance
coverage under this title.
(e)Continued
Availability and ReallocationAny amounts made available pursuant
to subparagraph (A), (B), or (C) of subsection (b)(1) that are not used in any
fiscal year shall continue to be available for the purposes specified in such
subparagraph of subsection (b)(1) pursuant to which such amounts were made
available, unless the Administrator determines that reallocation of such unused
amounts to meet demonstrated need for other mitigation activities under section
1366 is in the best interest of the National Flood Insurance
Fund.
.
(f)Increased cost
of compliance coverageSection 1304(b)(4) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is amended—
(1)by striking
subparagraph (B); and
(2)by redesignating
subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D),
respectively.
130.Flood
Protection Structure Accreditation Task Force
(a)In
this section—
(1)the term
flood protection structure accreditation requirements means the
requirements established under section 65.10 of title 44, Code of Federal
Regulations, for levee systems to be recognized on maps created for purposes of
the National Flood Insurance Program;
(2)the term
National Committee on Levee Safety means the Committee on Levee
Safety established under section 9003 of the National Levee Safety Act of 2007
(33 U.S.C. 3302); and
(3)the term
task force means the Flood Protection Structure Accreditation Task
Force established under subsection (b).
(b)
(1)The Administrator and
the Secretary of the Army, acting through the Chief of Engineers, in
cooperation with the National Committee on Levee Safety, shall jointly
establish a Flood Protection Structure Accreditation Task Force.
(2)
(A)The task force shall
develop a process to better align the information and data collected by or for
the United States Army Corps of Engineers under the Inspection of Completed
Works Program with the flood protection structure accreditation requirements so
that—
(i)information and data collected for either
purpose can be used interchangeably; and
(ii)information and data collected by or for
the United States Army Corps of Engineers under the Inspection of Completed
Works Program is sufficient to satisfy the flood protection structure
accreditation requirements.
(B)Gathering
recommendationsThe task
force shall gather, and consider in the process developed under subparagraph
(A), recommendations from interested persons in each region relating to the
information, data, and accreditation requirements described in subparagraph
(A).
(3)In
developing the process under paragraph (2), the task force shall consider
changes to—
(A)the information
and data collected by or for the United States Army Corps of Engineers under
the Inspection of Completed Works Program; and
(B)the flood
protection structure accreditation requirements.
(4)Nothing in this section shall be construed to
require a reduction in the level of public safety and flood control provided by
accredited levees, as determined by the Administrator for purposes of this
section.
(c)The
Administrator and the Secretary of the Army, acting through the Chief of
Engineers, shall implement the process developed by the task force under
subsection (b).
(d)The
Administrator and the Secretary of the Army, acting through the Chief of
Engineers, in cooperation with the National Committee on Levee Safety, shall
jointly submit to the Committee on Banking, Housing, and Urban Affairs and the
Committee on Environment and Public Works of the Senate and the Committee on
Financial Services, the Committee on Transportation and Infrastructure, and the
Committee on Natural Resources of the House of Representatives reports
concerning the activities of the task force and the implementation of the
process developed by the task force under subsection (b), including—
(1)an interim
report, not later than 180 days after the date of enactment of this Act;
and
(2)a final report,
not later than 1 year after the date of enactment of this Act.
(e)The
task force shall terminate on the date of submission of the report under
subsection (d)(2).
131.Flood in
progress determinations
(a)
(1)The
Administrator shall review—
(A)the processes and
procedures for determining that a flood event has commenced or is in progress
for purposes of flood insurance coverage made available under the National
Flood Insurance Program;
(B)the processes and
procedures for providing public notification that such a flood event has
commenced or is in progress;
(C)the processes and
procedures regarding the timing of public notification of flood insurance
requirements and availability; and
(D)the effects and
implications that weather conditions, including rainfall, snowfall, projected
snowmelt, existing water levels, and other conditions, have on the
determination that a flood event has commenced or is in progress.
(2)Not
later than 6 months after the date of enactment of this Act, the Administrator
shall submit a report to Congress that describes—
(A)the results and
conclusions of the review under paragraph (1); and
(B)any actions
taken, or proposed actions to be taken, by the Administrator to provide for
more precise and technical processes and procedures for determining that a
flood event has commenced or is in progress.
(b)Effective date
of policies covering properties affected by flooding of the Missouri River in
2011
(1)For purposes of this
subsection, the term eligible coverage means coverage under a new
contract for flood insurance coverage under the National Flood Insurance
Program, or a modification to coverage under an existing flood insurance
contract, for property damaged by the flooding of the Missouri River that
commenced on June 1, 2011, that was purchased or made during the period
beginning May 1, 2011, and ending June 6, 2011.
(2)Notwithstanding section
1306(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any
other provision of law, any eligible coverage shall—
(A)be deemed to take effect on the date that
is 30 days after the date on which all obligations for the eligible coverage
(including completion of the application and payment of any initial premiums
owed) are satisfactorily completed; and
(B)cover damage to
property occurring after the effective date described in subparagraph (A) that
resulted from the flooding of the Missouri River that commenced on June 1,
2011, if the property did not suffer damage or loss as a result of such
flooding before the effective date described in subparagraph (A).
132.Clarification
of residential and commercial coverage limitsSection 1306(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended—
(1)in paragraph
(2)—
(A)by striking
in the case of any residential property
and inserting in
the case of any residential building designed for the occupancy of from one to
four families
; and
(B)by striking
shall be made available to every insured upon renewal and every
applicant for insurance so as to enable such insured or applicant to receive
coverage up to a total amount (including such limits specified in paragraph
(1)(A)(i)) of $250,000
and inserting shall be made available,
with respect to any single such building, up to an aggregate liability
(including such limits specified in paragraph (1)(A)(i)) of $250,000
;
and
(2)in paragraph
(4)—
(A)by striking
in the case of any nonresidential property, including churches,
and inserting in the case of any nonresidential building, including a
church,
; and
(B)by striking
shall be made available to every insured upon renewal and every
applicant for insurance, in respect to any single structure, up to a total
amount (including such limit specified in subparagraph (B) or (C) of paragraph
(1), as applicable) of $500,000 for each structure and $500,000 for any
contents related to each structure
and inserting shall be made
available with respect to any single such building, up to an aggregate
liability (including such limits specified in subparagraph (B) or (C) of
paragraph (1), as applicable) of $500,000, and coverage shall be made available
up to a total of $500,000 aggregate liability for contents owned by the
building owner and $500,000 aggregate liability for each unit within the
building for contents owned by the tenant
.
133.
(a)Notwithstanding any other provision of this title, no
area or community participating in the National Flood Insurance Program that is
or includes a community that is identified by the Administrator as Community
Identification Number 360467 and impacted by the Jamaica Bay flooding source or
identified by the Administrator as Community Identification Number 360495 may
be or become designated as an area of special flood hazards for purposes of the
National Flood Insurance Program, unless the designation is made on the basis
of—
(1)flood hazard
analyses of hydrologic, hydraulic, or coastal flood hazards that have been
properly calibrated and validated, and are specific and directly relevant to
the geographic area being studied; and
(2)ground elevation
information of sufficient accuracy and precision to meet the guidelines of the
Administration for accuracy at the 95 percent confidence level.
(b)
(1)If the Administrator determines that an area described
in subsection (a) has been designated as an area of special flood hazard on the
basis of information that does not comply with the requirements under
subsection (a), the Administrator shall revise and update any National Flood
Insurance Program rate map for the area—
(A)using information
that complies with the requirements under subsection (a); and
(B)in accordance
with the procedures established under section 1363 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104) for flood elevation
determinations.
(2)The
Administrator shall issue a preliminary National Flood Insurance Program rate
map resulting from a revision and update required under paragraph (1) not later
than 1 year after the date of enactment of this Act.
(3)Risk premium
rate clarificationAny increase in the risk premium rate for a
property in an area for which the Administrator has made a determination under
paragraph (1) shall be phased in, in accordance with the schedule set forth
under section 1308(h) of the National Flood Insurance Act of 1968 (42 U.S.C.
4015(h)), as added by this Act. The provisions of this paragraph terminate on
the effective date of the National Flood Insurance Program rate map for the
area revised and updated in accordance with paragraph (1).
134.Eligibility
for flood insurance for persons residing in communities that have made adequate
progress on the construction, reconstruction, or improvement of a flood
protection system
(a)Eligibility for
flood insurance coverage
(1)Notwithstanding any other provision of law, a person
residing in a community that the Administrator determines has made adequate
progress on the reconstruction or improvement of a flood protection system that
will afford flood protection for a 100-year floodplain (without regard to the
level of Federal funding of or participation in the construction,
reconstruction, or improvement), shall be eligible for flood insurance coverage
under the National Flood Insurance Program—
(A)if the person
resides in a community that is a participant in the National Flood Insurance
Program; and
(B)at a risk premium
rate that does not exceed the risk premium rate that would be chargeable if the
flood protection system had been completed.
(2)
(A)Reconstruction
or improvementFor purposes of paragraph (1), the Administrator
shall determine that a community has made adequate progress on the
reconstruction or improvement of a flood protection system if—
(i)100
percent of the project cost has been authorized;
(ii)not less than 60
percent of the project cost has been secured or appropriated;
(iii)not less than
50 percent of the flood protection system has been assessed as being without
deficiencies; and
(iv)the
reconstruction or improvement has a project schedule that does not exceed 5
years, beginning on the date on which the reconstruction or construction of the
improvement commences.
(B)In
determining whether a flood protection system have been assessed as being
without deficiencies, the Administrator shall consider the requirements under
section 65.10 of chapter 44, Code of Federal Regulations, or any successor
thereto.
(b)Termination of
eligibility
(1)Adequate
continuing progressThe Administrator shall issue rules to
establish a method of determining whether a community has made adequate
continuing progress on the reconstruction or improvement of a flood protection
system that includes—
(A)a requirement
that the Administrator shall—
(i)consult with the
owner of the flood protection system—
(I)6 months after
the date of a determination under subsection (a);
(II)18 months after
the date of a determination under subsection (a); and
(III)36 months after
the date of a determination under subsection (a); and
(ii)after each
consultation under clause (i), determine whether the reconstruction or
improvement is reasonably likely to be completed in accordance with the project
schedule described in subsection (a)(2)(A)(iv); and
(B)a requirement
that, if the Administrator makes a determination under subparagraph (A)(ii)
that reconstruction or improvement is not reasonably likely to be completed in
accordance with the project schedule, the Administrator shall—
(i)not
later than 30 days after the date of the determination, notify the owner of the
flood protection system of the determination and provide the rationale and
evidence for the determination; and
(ii)provide the
owner of the flood protection system the opportunity to appeal the
determination.
(2)The
Administrator shall terminate the eligibility for flood insurance coverage
under the National Flood Insurance Program of persons residing in a community
with respect to which the Administrator made a determination under subsection
(a) if—
(A)the Administrator
determines that the community has not made adequate continuing progress;
or
(B)on the date that
is 5 years after the date on which the reconstruction or construction of the
improvement commences, the project has not been completed.
(3)A
person whose eligibility would otherwise be terminated under paragraph (2)(B)
shall continue to be eligible to purchase flood insurance coverage described in
subsection (a) if the Administrator determines—
(A)the community has
made adequate continuing progress on the reconstruction or improvement of a
flood protection system; and
(B)there is a
reasonable expectation that the reconstruction or improvement of the flood
protection system will be completed not later than 1 year after the date of the
determination under this paragraph.
(4)If the Administrator terminates the eligibility of persons
residing in a community to purchase flood insurance coverage described in
subsection (a), the Administrator shall establish an appropriate risk premium
rate for flood insurance coverage under the National Flood Insurance Program
for persons residing in the community that purchased flood insurance coverage
before the date on which the termination of eligibility takes effect, taking
into consideration the then-current state of the flood protection
system.
135.
(a)Report on
Expanding the National Flood Insurance ProgramNot later than 1
year after the date of the enactment of this Act, the Comptroller General of
the United States shall conduct a study and submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, on—
(1)the number of
flood insurance policy holders currently insuring—
(A)a residential
structure up to the maximum available coverage amount, as established in
section 61.6 of title 44, Code of Federal Regulations, of—
(i)$250,000 for the
structure; and
(ii)$100,000 for the
contents of such structure; or
(B)a commercial
structure up to the maximum available coverage amount, as established in
section 61.6 of title 44, Code of Federal Regulations, of $500,000;
(2)the increased
losses the National Flood Insurance Program would have sustained during the
2004 and 2005 hurricane season if the National Flood Insurance Program had
insured all policyholders up to the maximum conforming loan limit for fiscal
year 2006 of $417,000, as established under section 302(b)(2) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2));
(3)the availability
in the private marketplace of flood insurance coverage in amounts that exceed
the current limits of coverage amounts established in section 61.6 of title 44,
Code of Federal Regulations; and
(4)what effect, if
any—
(A)raising the
current limits of coverage amounts established in section 61.6 of title 44,
Code of Federal Regulations, would have on the ability of private insurers to
continue providing flood insurance coverage; and
(B)reducing the
current limits of coverage amounts established in section 61.6 of title 44,
Code of Federal Regulations, would have on the ability of private insurers to
provide sufficient flood insurance coverage to effectively replace the current
level of flood insurance coverage being provided under the National Flood
Insurance Program.
(b)Report of the
Administrator on Activities Under the National Flood Insurance Program
(1)The Administrator shall, on an annual basis, submit a
full report on the operations, activities, budget, receipts, and expenditures
of the National Flood Insurance Program for the preceding 12-month period to
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives.
(2)Each
report required under paragraph (1) shall be submitted to the committees
described in paragraph (1) not later than 3 months following the end of each
fiscal year.
(3)Each
report required under paragraph (1) shall include—
(A)the current
financial condition and income statement of the National Flood Insurance Fund
established under section 1310 of the National Flood Insurance Act of 1968 (42
U.S.C. 4017), including—
(i)premiums paid
into such Fund;
(ii)policy claims
against such Fund; and
(iii)expenses in
administering such Fund;
(B)the number and
face value of all policies issued under the National Flood Insurance Program
that are in force;
(C)a description and
summary of the losses attributable to repetitive loss structures;
(D)a description and
summary of all losses incurred by the National Flood Insurance Program due
to—
(i)hurricane related
damage; and
(ii)nonhurricane
related damage;
(E)the amounts made
available by the Administrator for mitigation assistance under section
1366(c)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c(c)(4)
for the purchase of properties substantially damaged by flood for that fiscal
year, and the actual number of flood damaged properties purchased and the total
cost expended to purchase such properties;
(F)the estimate of
the Administrator as to the average historical loss year, and the basis for
that estimate;
(G)the estimate of
the Administrator as to the maximum amount of claims that the National Flood
Insurance Program would have to expend in the event of a catastrophic
year;
(H)the
average—
(i)amount of
insurance carried per flood insurance policy;
(ii)premium per
flood insurance policy; and
(iii)loss per flood
insurance policy; and
(I)the number of
claims involving damages in excess of the maximum amount of flood insurance
available under the National Flood Insurance Program and the sum of the amount
of all damages in excess of such amount.
(c)GAO Study on
Pre-FIRM StructuresNot later than 1 year after the date of the
enactment of this Act, the Comptroller General of the United States shall
conduct a study and submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives, on the—
(1)composition of
the remaining pre-FIRM structures that are explicitly receiving discounted
premium rates under section 1307 of the National Flood Insurance Act of 1968
(42 U.S.C. 4014), including the historical basis for the receipt of such
subsidy and the extent to which pre-FIRM structures are currently owned by the
same owners of the property at the time of the original FIRM;
(2)number and fair
market value of such structures;
(3)respective income
level of the owners of such structures;
(4)number of times
each such structure has been sold since 1968, including specific dates, sales
price, and any other information the Secretary determines appropriate;
(5)total losses
incurred by such structures since the establishment of the National Flood
Insurance Program compared to the total losses incurred by all structures that
are charged a nondiscounted premium rate;
(6)total cost of
foregone premiums since the establishment of the National Flood Insurance
Program, as a result of the subsidies provided to such structures;
(7)annual cost as a
result of the subsidies provided to such structures;
(8)the premium
income collected and the losses incurred by the National Flood Insurance
Program as a result of such explicitly subsidized structures compared to the
premium income collected and the losses incurred by such Program as a result of
structures that are charged a nondiscounted premium rate, on a State-by-State
basis; and
(9)the options for
eliminating the subsidy to such structures.
(d)GAO Review of
FEMA ContractorsThe Comptroller General of the United States, in
conjunction with the Office of the Inspector General of the Department of
Homeland Security, shall—
(1)conduct a review
of the 3 largest contractors the Administrator uses in administering the
National Flood Insurance Program; and
(2)not later than 18
months after the date of the enactment of this Act, submit a report on the
findings of such review to the Administrator, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives.
136.
(a)
(1)Private market
pricing assessmentNot later than 12 months after the date of the
enactment of this Act, the Administrator shall submit to Congress a report
that—
(A)assesses the
capacity of the private reinsurance, capital, and financial markets to assist
communities, on a voluntary basis, in managing the full range of financial
risks associated with flooding by requesting proposals to assume a portion of
the insurance risk of the National Flood Insurance Program;
(B)describes any
responses to the request for proposals under subparagraph (A);
(C)assesses whether
the rates and terms contained in any proposals received by the Administrator
are—
(i)reasonable and
appropriate; and
(ii)in
an amount sufficient to maintain the ability of the National Flood Insurance
Program to pay claims;
(D)describes the
extent to which carrying out the proposals received by the Administrator would
minimize the likelihood that the Administrator would use the borrowing
authority under section 1309 of the National Flood Insurance Act of 1968 (42
U.S.C. 4016);
(E)describes
fluctuations in historical reinsurance rates; and
(F)includes an
economic cost-benefit analysis of the impact on the National Flood Insurance
Program if the Administrator were to exercise the authority under section
1335(a)(2) of the National Flood Insurance Act of 1968 (42 U.S.C. 4055(a)(2)),
as added by this section, to secure reinsurance of coverage provided by the
National Flood Insurance Program from the private market.
(2)Protocol for
release of dataThe Administrator shall develop a protocol,
including adequate privacy protections, to provide for the release of data
sufficient to conduct the assessment required under paragraph (1).
(b)The
National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is
amended—
(1)in section
1331(a)(2) (42 U.S.C. 4051(a)(2)), by inserting , including as
reinsurance of coverage provided by the flood insurance program
before
, on such terms
;
(2)in section
1332(c)(2) (42 U.S.C. 4052(c)(2)), by inserting or reinsurance
after flood insurance coverage
;
(3)in section
1335(a) (42 U.S.C. 4055(a))—
(A)by striking
The Director
and inserting the following:
(1)The Administrator
;
and
(B)by adding at the
end the following:
(2)The Administrator is authorized to secure reinsurance
of coverage provided by the flood insurance program from the private market at
rates and on terms determined by the Administrator to be reasonable and
appropriate, in an amount sufficient to maintain the ability of the program to
pay
claims.
;
(4)in section
1346(a) (12 U.S.C. 4082(a))—
(A)in the matter
preceding paragraph (1), by inserting after for the purpose of
the following: securing reinsurance of insurance coverage provided by
the program or for the purpose of
;
(B)in paragraph
(1)—
(i)by
striking estimating
and inserting Estimating
;
and
(ii)by
striking the semicolon at the end and inserting a period;
(C)in paragraph
(2)—
(i)by
striking receiving
and inserting Receiving
;
and
(ii)by
striking the semicolon at the end and inserting a period;
(D)in paragraph
(3)—
(i)by
striking making
and inserting Making
; and
(ii)(ii) by striking
‘; and
’ and inserting a period;
(E)by redesignating
paragraph (4) as paragraph (5);
(F)in paragraph (5),
as so redesignated, by striking otherwise
and inserting
Otherwise
; and
(G)by inserting
after paragraph (3) the following new paragraph:
(4)Placing
reinsurance coverage on insurance provided by such
program;
;
and
(5)in section
1370(a)(3) (42 U.S.C. 4121(a)(3)), by striking include any
and
all that follows and inserting the following: include any organization
or person that is authorized to engage in the business of insurance under the
laws of any State, subject to the reporting requirements of the Securities
Exchange Act of 1934 pursuant to section 13(a) or 15(d) of such Act (15 U.S.C.
78m(a) and 78o(d)), or authorized by the Administrator to assume reinsurance on
risks insured by the flood insurance program;
.
(c)Assessment of
claims-paying ability
(1)
(A)
(i)Not later than September 30 of each year, the
Administrator shall conduct an assessment of the ability of the National Flood
Insurance Program to pay claims.
(ii)Private market
reinsuranceThe assessment under this paragraph for any year in
which the Administrator exercises the authority under section 1335(a)(2) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as added by this
section, to secure reinsurance of coverage provided by the National Flood
Insurance Program from the private market shall include information relating
the use of private sector reinsurance and reinsurance equivalents by the
Administrator, whether or not the Administrator used the borrowing authority
under section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C.
4016).
(iii)The Administrator shall conduct the first assessment
required under this paragraph not later than September 30, 2012.
(B)In
conducting an assessment under subparagraph (A), the Administrator shall take
into consideration regional concentrations of coverage written by the National
Flood Insurance Program, peak flood zones, and relevant mitigation
measures.
(2)Annual report
of the Administrator of activities under the national flood insurance
programThe Administrator shall—
(A)include the
results of each assessment in the report required under section 135(b);
and
(B)not later than 30
days after the date on which the Administrator completes an assessment required
under paragraph (1), make the results of the assessment available to the
public.
137.GAO study on
business interruption and additional living expenses coverages
(a)The
Comptroller General of the United States shall conduct a study
concerning—
(1)the availability
of additional living expenses and business interruption coverage in the private
marketplace for flood insurance;
(2)the feasibility
of allowing the National Flood Insurance Program to offer such coverage at the
option of the consumer;
(3)the estimated
cost to consumers if the National Flood Insurance Program priced such optional
coverage at true actuarial rates;
(4)the impact such
optional coverage would have on consumer participation in the National Flood
Insurance Program; and
(5)the fiscal impact
such optional coverage would have upon the National Flood Insurance Fund if
such optional coverage were included in the National Flood Insurance Program,
as described in paragraph (2), at the price described in paragraph (3).
(b)Not
later than 1 year after the date of the enactment of this Act, the Comptroller
General 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 containing the results of the study under subsection
(a).
138.
(a)Notwithstanding any other provision of law, in addition
to any other disclosures that may be required, each policy under the National
Flood Insurance Program shall state all conditions, exclusions, and other
limitations pertaining to coverage under the subject policy, regardless of the
underlying insurance product, in plain English, in boldface type, and in a font
size that is twice the size of the text of the body of the policy.
(b)Any
person that violates the requirements of this section shall be subject to a
fine of not more than $50,000 at the discretion of the Administrator.
139.Report on
inclusion of building codes in floodplain management criteriaNot later than 6 months after the date of
the enactment of this Act, the Administrator of the Federal Emergency
Management Agency shall conduct a study and submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives regarding the impact,
effectiveness, and feasibility of amending section 1361 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102) to include widely used and nationally
recognized building codes as part of the floodplain management criteria
developed under such section, and shall determine—
(1)the regulatory,
financial, and economic impacts of such a building code requirement on
homeowners, States and local communities, local land use policies, and the
Federal Emergency Management Agency;
(2)the resources
required of State and local communities to administer and enforce such a
building code requirement;
(3)the effectiveness
of such a building code requirement in reducing flood-related damage to
buildings and contents;
(4)the impact of
such a building code requirement on the actuarial soundness of the National
Flood Insurance Program;
(5)the effectiveness
of nationally recognized codes in allowing innovative materials and systems for
flood-resistant construction;
(6)the feasibility
and effectiveness of providing an incentive in lower premium rates for flood
insurance coverage under such Act for structures meeting whichever of such
widely used and nationally recognized building codes or any applicable local
building codes provides greater protection from flood damage;
(7)the impact of
such a building code requirement on rural communities with different building
code challenges than urban communities; and
(8)the impact of a
such a building code requirement on Indian reservations.
140.Study of
participation and affordability for certain policyholders
(a)The Administrator shall conduct a study of—
(1)methods to
encourage and maintain participation in the National Flood Insurance
Program;
(2)methods to
educate consumers about the National Flood Insurance Program and the flood risk
associated with their property;
(3)methods for
establishing an affordability framework for the National Flood Insurance
Program, including methods to aid individuals to afford risk-based premiums
under the National Flood Insurance Program through targeted assistance rather
than generally subsidized rates, including means-tested vouchers; and
(4)the implications
for the National Flood Insurance Program and the Federal budget of using each
such method.
(b)National
Academy of Sciences Economic AnalysisTo inform the Administrator
in the conduct of the study under subsection (a), the National Academy of
Sciences, in consultation with the Comptroller General of the United States,
shall conduct and submit to the Administrator an economic analysis of the costs
and benefits to the Federal Government of a flood insurance program with full
risk-based premiums, combined with means-tested Federal assistance to aid
individuals who cannot afford coverage, through an insurance voucher program.
The analysis shall compare the costs of a program of risk-based rates and
means-tested assistance to the current system of subsidized flood insurance
rates and federally funded disaster relief for people without coverage.
(c)Not
later than 270 days 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 of the study and analysis under this
section.
(d)Notwithstanding
section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 4017),
there shall be available to the Administrator from the National Flood Insurance
Fund, of amounts not otherwise obligated, not more than $750,000 to carry out
this section.
141.Study and
report concerning the participation of Indian tribes and members of Indian
tribes in the National Flood Insurance Program
(a)In
this section, the term Indian tribe has the meaning given that
term in section 4 of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b).
(b)Congress
finds that participation by Indian tribes in the National Flood Insurance
Program is low. Only 45 of 565 Indian tribes participate in the National Flood
Insurance Program.
(c)The
Comptroller General of the United States, in coordination and consultation with
Indian tribes and members of Indian tribes throughout the United States, shall
carry out a study that examines—
(1)the factors
contributing to the current rates of participation by Indian tribes and members
of Indian tribes in the National Flood Insurance Program; and
(2)methods of
encouraging participation by Indian tribes and members of Indian tribes in the
National Flood Insurance Program.
(d)Not
later than 6 months after the date of enactment of this Act, the Comptroller
General shall submit to Congress a report that—
(1)contains the
results of the study carried out under subsection (c);
(2)describes the
steps that the Administrator should take to increase awareness and encourage
participation by Indian tribes and members of Indian tribes in the National
Flood Insurance Program; and
(3)identifies any
legislative changes that would encourage participation by Indian tribes and
members of Indian tribes in the National Flood Insurance Program.
142.
(a)Flood Disaster
Protection Act of 1973The
Flood Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is
amended—
(1)by striking
Director
each place that term appears, except in section
102(f)(3) (42 U.S.C. 4012a(f)(3)), and inserting Administrator
;
and
(2)in section 201(b) (42 U.S.C. 4105(b)), by
striking Director’s
and inserting
Administrator’s
.
(b)National Flood
Insurance Act of 1968The
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is
amended—
(1)by striking
Director
each place that term appears and inserting
Administrator
; and
(2)in sections 1363 (42 U.S.C. 4104), by
striking Director’s
each place that term appears and inserting
Administrator’s
.
(c)Federal Flood
Insurance Act of 1956Section
15(e) of the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended
by striking Director
each place that term appears and inserting
Administrator
.
IICommission on
natural catastrophe risk management and insurance
201.This title may be cited
as the Commission on Natural
Catastrophe Risk Management and Insurance Act of
2011
.
202.Congress finds that—
(1)Hurricanes
Katrina, Rita, and Wilma, which struck the United States in 2005, caused, by
some estimates, in excess of $200,000,000,000 in total economic losses;
(2)many
meteorologists predict that the United States is in a period of increased
hurricane activity;
(3)the Federal
Government and State governments have provided billions of dollars to pay for
losses from natural catastrophes, including hurricanes, earthquakes, volcanic
eruptions, tsunamis, tornados, flooding, wildfires, droughts, and other natural
catastrophes;
(4)many Americans
are finding it increasingly difficult to obtain and afford property and
casualty insurance coverage;
(5)some insurers are
not renewing insurance policies, are excluding certain risks, such as wind
damage, and are increasing rates and deductibles in some markets;
(6)the inability of
property and business owners in vulnerable areas to obtain and afford property
and casualty insurance coverage endangers the national economy and public
health and safety;
(7)almost every
State in the United States is at risk of a natural catastrophe, including
hurricanes, earthquakes, volcanic eruptions, tsunamis, tornados, flooding,
wildfires, droughts, and other natural catastrophes;
(8)building codes
and land use regulations play an indispensable role in managing catastrophe
risks, by preventing building in high risk areas and ensuring that appropriate
mitigation efforts are completed where building has taken place;
(9)several proposals
have been introduced in Congress to address the affordability and availability
of natural catastrophe insurance across the United States, but there is no
consensus on what, if any, role the Federal Government should play; and
(10)an efficient and
effective approach to assessing natural catastrophe risk management and
insurance is to establish a nonpartisan commission to study the management of
natural catastrophe risk, and to require such commission to timely report to
Congress on its findings.
203.There is established a nonpartisan
Commission on Natural Catastrophe Risk Management and Insurance (in this title
referred to as the Commission
).
204.
(a)The
Commission shall be composed of 16 members, of whom—
(1)2 members shall
be appointed by the majority leader of the Senate;
(2)2 members shall
be appointed by the minority leader of the Senate;
(3)2 members shall
be appointed by the Speaker of the House of Representatives;
(4)2 members shall
be appointed by the minority leader of the House of Representatives;
(5)2 members shall
be appointed by the Chairman of the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(6)2 members shall
be appointed by the Ranking Member of the Committee on Banking, Housing, and
Urban Affairs of the Senate;
(7)2 members shall
be appointed by the Chairman of the Committee on Financial Services of the
House of Representatives; and
(8)2 members shall
be appointed by the Ranking Member of the Committee on Financial Services of
the House of Representatives.
(b)
(1)Members of the Commission shall be appointed under
subsection (a) from among persons who—
(A)have expertise in
insurance, reinsurance, insurance regulation, policyholder concerns, emergency
management, risk management, public finance, financial markets, actuarial
analysis, flood mapping and planning, structural engineering, building
standards, land use planning, natural catastrophes, meteorology, seismology,
environmental issues, or other pertinent qualifications or experience;
and
(B)are not officers
or employees of the United States Government or of any State or local
government.
(2)In
making appointments to the Commission—
(A)every effort
shall be made to ensure that the members are representative of a broad cross
section of perspectives within the United States; and
(B)each member of
Congress described in subsection (a) shall appoint not more than 1 person from
any single primary area of expertise described in paragraph (1)(A) of this
subsection.
(c)
(1)Each member of the Commission shall be appointed for the
duration of the Commission.
(2)A
vacancy on the Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(d)
(1)A
majority of the members of the Commission shall constitute a quorum, but a
lesser number, as determined by the Commission, may hold hearings.
(2)All recommendations and reports of the Commission
required by this title shall be approved only by a majority vote of all of the
members of the Commission.
(e)The
Commission shall, by majority vote of all of the members, select 1 member to
serve as the Chairperson of the Commission (in this title referred to as the
Chairperson
).
(f)The
Commission shall meet at the call of its Chairperson or a majority of the
members.
205.The Commission
shall examine the risks posed to the United States by natural catastrophes, and
means for mitigating those risks and for paying for losses caused by natural
catastrophes, including assessing—
(1)the condition of
the property and casualty insurance and reinsurance markets prior to and in the
aftermath of Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major
hurricanes that struck the United States in 2004;
(2)the current
condition of, as well as the outlook for, the availability and affordability of
insurance in all regions of the country;
(3)the current
ability of States, communities, and individuals to mitigate their natural
catastrophe risks, including the affordability and feasibility of such
activities;
(4)the ongoing
exposure of the United States to natural catastrophes, including hurricanes,
earthquakes, volcanic eruptions, tsunamis, tornados, flooding, wildfires,
droughts, and other natural catastrophes;
(5)the catastrophic
insurance and reinsurance markets and the relevant practices in providing
insurance protection to different sectors of the American population;
(6)implementation of
a catastrophic insurance system that can resolve key obstacles currently
impeding broader implementation of catastrophic risk management and financing
with insurance;
(7)the financial
feasibility and sustainability of a national, regional, or other pooling
mechanism designed to provide adequate insurance coverage and increased
underwriting capacity to insurers and reinsurers, including private-public
partnerships to increase insurance capacity in constrained markets;
(8)methods to
promote public or private insurance policies to reduce losses caused by natural
catastrophes in the uninsured sectors of the American population;
(9)approaches for
implementing a public or private insurance scheme for low-income communities,
in order to promote risk reduction and insurance coverage in such
communities;
(10)the impact of
Federal and State laws, regulations, and policies (including rate regulation,
market access requirements, reinsurance regulations, accounting and tax
policies, State residual markets, and State catastrophe funds) on—
(A)the affordability
and availability of catastrophe insurance;
(B)the capacity of
the private insurance market to cover losses inflicted by natural
catastrophes;
(C)the commercial
and residential development of high-risk areas; and
(D)the costs of
natural catastrophes to Federal and State taxpayers;
(11)the present and
long-term financial condition of State residual markets and catastrophe funds
in high-risk regions, including the likelihood of insolvency following a
natural catastrophe, the concentration of risks within such funds, the reliance
on post-event assessments and State funding, and the adequacy of rates;
(12)the role that
innovation in financial services could play in improving the affordability and
availability of natural catastrophe insurance, specifically addressing measures
that would foster the development of financial products designed to cover
natural catastrophe risk, such as risk-linked securities;
(13)the need for
strengthened land use regulations and building codes in States at high risk for
natural catastrophes, and methods to strengthen the risk assessment and
enforcement of structural mitigation and vulnerability reduction measures, such
as zoning and building code compliance;
(14)the benefits and
costs of proposed Federal natural catastrophe insurance programs (including the
Federal Government’s provision of reinsurance to State catastrophe funds,
private insurers, or other entities), specifically addressing the costs to
taxpayers, tax equity considerations, and the record of other government
insurance programs (particularly with regard to charging actuarially sound
prices);
(15)the ability of
the United States private insurance market—
(A)to cover insured
losses caused by natural catastrophes, including an estimate of the maximum
amount of insured losses that could be sustained during a single year and the
probability of natural catastrophes occurring in a single year that would
inflict more insured losses than the United States insurance and reinsurance
markets could sustain; and
(B)to recover after
covering substantial insured losses caused by natural catastrophes;
(16)the impact that
demographic trends could have on the amount of insured losses inflicted by
future natural catastrophes;
(17)the appropriate
role, if any, for the Federal Government in stabilizing the property and
casualty insurance and reinsurance markets; and
(18)the role of the
Federal, State, and local governments in providing incentives for feasible risk
mitigation efforts.
206.
(a)Not later than 9 months after the date of the enactment
of this Act, the Commission 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 final report containing—
(1)a detailed
statement of the findings and assessments conducted by the Commission pursuant
to section 205; and
(2)any
recommendations for legislative, regulatory, administrative, or other actions
at the Federal, State, or local levels that the Commission considers
appropriate, in accordance with the requirements of section 205.
(b)The Commission may request Congress to extend the period of
time for the submission of the report required under subsection (a) for an
additional 3 months.
207.
(a)The Commission may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as the
Commission considers necessary to carry out the purposes of this title. Members
may attend meetings of the Commission and vote in person, via telephone
conference, or via video conference.
(b)Authority of
members or agents of the commissionAny member or agent of the
Commission may, if authorized by a vote of the Commission, take any action
which the Commission is authorized to take by this title.
(c)
(1)Notwithstanding
any provision of section 552a of title 5, United States Code, the Commission
may secure directly from any department or agency of the United States any
information necessary to enable the Commission to carry out this title.
(2)Upon
the request of the Chairperson, the head of such department or agency shall
furnish to the Commission the information requested.
(d)The Commission may use the United States mails in the
same manner and under the same conditions as other departments and agencies of
the Federal Government.
(e)Administrative
support servicesUpon the request of the Commission, the
Administrator of General Services shall provide to the Commission, on a
reimbursable basis, any administrative support services necessary for the
Commission to carry out its responsibilities under this title.
(f)The Commission may accept, hold, administer, and utilize
gifts, donations, and bequests of property, both real and personal, for the
purposes of aiding or facilitating the work of the Commission. The Commission
shall issue internal guidelines governing the receipt of donations of services
or property.
(g)Notwithstanding the provisions of section 1342 of title
31, United States Code, the Commission may accept and utilize the services of
volunteers serving without compensation. The Commission may reimburse such
volunteers for local travel and office supplies, and for other travel expenses,
including per diem in lieu of subsistence, as authorized by section 5703 of
title 5, United States Code.
(h)Federal
property and administrative services Act of 1949Subject to the
Federal Property and Administrative Services Act of 1949, the Commission may
enter into contracts with Federal and State agencies, private firms,
institutions, and individuals for the conduct of activities necessary to the
discharge of its duties and responsibilities.
(i)A contract or other
legal agreement entered into by the Commission may not extend beyond the date
of the termination of the Commission.
208.Commission
personnel matters
(a)The members of the Commission shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places of business in the
performance of services for the Commission.
(b)The
Commission may establish subcommittees and appoint members of the Commission to
such subcommittees as the Commission considers appropriate.
(c)Subject
to such policies as the Commission may prescribe, the Chairperson may appoint
and fix the pay of such additional personnel as the Chairperson considers
appropriate to carry out the duties of the Commission. The Commission shall
confirm the appointment of the executive director by majority vote of all of
the members of the Commission.
(d)Applicability
of certain civil service lawsStaff of the Commission may
be—
(1)appointed without
regard to the provisions of title 5, United States Code, governing appointments
in the competitive service; and
(2)paid without
regard to the provisions of chapter 51 and subchapter III of chapter 53 of that
title relating to classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the annual rate of
basic pay prescribed for GS–15 of the General Schedule under section 5332 of
that title.
(e)In carrying out its objectives, the Commission may
procure temporary and intermittent services of consultants and experts under
section 3109(b) of title 5, United States Code, at rates for individuals which
do not exceed the daily equivalent of the annual rate of basic pay prescribed
for GS–15 of the General Schedule under section 5332 of that title.
(f)Detail of
government employeesUpon request of the Chairperson, any Federal
Government employee may be detailed to the Commission to assist in carrying out
the duties of the Commission—
(1)on a reimbursable
basis; and
(2)such detail shall
be without interruption or loss of civil service status or privilege.
209.The Commission shall terminate 90 days after
the date on which the Commission submits its report under section 206.
210.Authorization
of appropriationsThere are
authorized to be appropriated to the Commission, such sums as may be necessary
to carry out this title, to remain available until expended.
December 5, 2011
Read twice and placed on the calendar