[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1423 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 1423
To reauthorize and improve the national flood insurance program, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2017
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To reauthorize and improve the national flood insurance program, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National Flood
Insurance Program Reauthorization and Improvement Act of 2017''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Extension of national flood insurance program.
Sec. 3. Improved disclosure requirement for standard flood insurance
policies.
Sec. 4. Properties with preexisting conditions.
Sec. 5. Improvement of administrative and litigation process for claims
adjudication.
Sec. 6. Improvement of oversight of engineers.
Sec. 7. Publicly searchable online registry.
Sec. 8. Penalties for fraud and false statements in the National Flood
Insurance Program.
Sec. 9. Whistleblower protection for employees.
Sec. 10. Engineering firm independence.
Sec. 11. GAO reports.
Sec. 12. Regulations.
SEC. 2. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Financing.--Section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30,
2017'' and inserting ``September 30, 2027''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2017'' and inserting ``September 30, 2027''.
SEC. 3. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE
POLICIES.
Section 100234 of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4013a) is amended by adding at the end the following
new subsections:
``(c) Disclosure of Coverage.--
``(1) Disclosure sheet.--Each policy under the National
Flood Insurance Program shall include a disclosure sheet that
sets forth, in plain language--
``(A) the definition of the term `flood' for
purposes of coverage under the policy;
``(B) a description of what type of flood forces
are necessary so that losses from an event are covered
under the policy, including overflow of inland or tidal
waves, unusual and rapid accumulation or runoff of a
surface any source, and mudflow;
``(C) a statement of the types and characteristics
of losses that are not covered under the policy;
``(D) a summary of total cost and amount of
insurance coverage;
``(E) a statement that the disclosure sheet
provides general information about the policyholder's
standard flood insurance policy;
``(F) a statement that the standard flood insurance
policy, together with the application, endorsements,
and declarations page, make up the official contract
and are controlling in the event that there is any
difference between the information on the disclosure
sheet and the information in the policy; and
``(G) a statement that if the policyholder has any
questions regarding information in the disclosure sheet
or policy he or she should contact their insurance
agent, together with the address and phone number at
which to contact such agent.
``(2) Acknowledgment sheet.--Each policy under the National
Flood Insurance Program shall include an acknowledgment sheet
that sets forth, in plain language--
``(A) a statement of whether or not there is a
basement in the property to be covered by the policy;
``(B) a statement of whether or not the policy
provides coverage for the contents of the property
covered by the policy;
``(C) a statement that the standard flood insurance
policy, together with the application, endorsements,
and declarations page, make up the official contract
and are controlling in the event that there is any
difference between the information on the
acknowledgment sheet and the information in the policy;
and
``(D) a statement that if the policyholder has any
questions regarding information in the acknowledgment
sheet or policy he or she should contact their
insurance agent, together with the address and phone
number at which to contact such agent.
``(3) Required signatures.--A policy for flood insurance
coverage under the National Flood Insurance Program may not
take effect unless the disclosure sheet required under
paragraph (1) and the acknowledgment sheet required under
paragraph (2), with respect to the policy, are signed and dated
by the policyholder, the insurance agent who sold the policy,
and a representative of the Administrator.
``(d) Availability in Other Languages.--
``(1) Availability.--The Administrator shall make policies
under the National Flood Insurance Program, and the disclosure
and acknowledgment sheets required by subsection (c), available
in Spanish language versions and in such other languages as the
Administrator considers appropriate and shall provide such a
version at the request of the insured or prospective insured.
``(2) Publicizing availability.--The Administrator shall
take such actions as may be necessary to inform insureds and
prospective insures of the availability of policies in such
languages other than English.
``(3) Conflicting information.--In the case of any
difference between the information that is provided pursuant to
this subsection to a policyholder in the English language and
in the Spanish or other language, the information provided in
the English language shall be determinative.''.
SEC. 4. PROPERTIES WITH PREEXISTING CONDITIONS.
Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C.
4018) is amended by adding at the end the following new subsection:
``(c) Program for Investigation of Preexisting Structural
Conditions.--
``(1) Voluntary program.--The Administrator shall carry out
a program to provide for companies participating in the Write
Your Own program (as such term is defined in section 100202 of
the Biggert-Waters Flood Insurance Reform Act of 2012 (42
U.S.C. 4004)) to investigate preexisting structural conditions
of insured properties and potentially insured properties that
could result in the denial of a claim under a policy for flood
insurance coverage under this title in the event of a flood
loss to such property. Participation in the program shall be
voluntary on the part of Write Your Own companies.
``(2) Investigation of properties.--Under the program under
this subsection, a Write Your Own company participating in the
program shall--
``(A) provide in policies for flood insurance
coverage under this title covered by the program that,
upon the request of the policyholder, the company shall
provide for--
``(i) an investigation of the property
covered by such policy, using common methods,
to determine whether preexisting structural
conditions are present that could result in the
denial of a claim under such policy for flood
losses; and
``(ii) if such investigation is not
determinative, an on-site inspection of the
property to determine whether such preexisting
structural conditions are present;
``(B) upon completion of an investigation or
inspection pursuant to subparagraph (A) that determines
that such a preexisting structural condition is present
or absent, submit a report to the policyholder and
Administrator describing the condition; and
``(C) impose a surcharge on each policy described
in subparagraph (A) in such amount that the
Administrator determines is appropriate to cover the
costs of investigations and inspections performed
pursuant to such policies and reimburse Write Your Own
companies participating in the program under this
subsection for such costs.''.
SEC. 5. IMPROVEMENT OF ADMINISTRATIVE AND LITIGATION PROCESS FOR CLAIMS
ADJUDICATION.
(a) Industry Program With Federal Financial Assistance.--Section
1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053) is
amended--
(1) by striking ``mailing of notice of disallowance or
partial disallowance by the Administrator'' and inserting ``the
final determination by the Administrator disallowing or
partially disallowing the claim''; and
(2) by adding after the period at the end the following:
``If the claimant prevails in an action under this section, the
court may award costs of litigation, including attorneys fee,
litigation expenses, and engineering and other expert expenses,
to the claimant. Any such award shall be paid by the
Administrator and, upon such payment, the Administrator shall
be subrogated to the rights of the claimant to recover such
costs for which the Administrator has compensated the claimant
from any company or other insurer responsible for the
disallowance of the claim.''.
(b) Government Program With Industry Assistance.--Section 1341 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended--
(1) by striking ``mailing of notice of disallowance or
partial disallowance of'' and inserting ``the final
determination disallowing or partially disallowing''; and
(2) by adding after the period at the end the following:
``If the claimant prevails in an action under this section, the
court may award costs of litigation, including attorneys fee,
litigation expenses, and engineering and other expert expenses,
to the claimant. Any such award shall be paid by the
Administrator and, upon such payment, the Administrator shall
be subrogated to the rights of the claimant to recover such
costs for which the Administrator has compensated the claimant
from any insurance company or other insurer or insurance
adjustment organization that may be responsible for the
disallowance of the claim.''.
(c) Awards for Costs in Appeals to FEMA.--Section 1312 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended by
adding at the end the following new subsection:
``(d) Awards for Costs in Administrative Proceedings.--If the
claimant prevails in any appeal to the Administrator of the
disallowance of a claim for losses covered by flood insurance made
available under this title, the Administrator shall award costs of the
appeal, including attorneys fee, any proceeding expenses, and
engineering and other expert expenses, to the claimant.''.
(d) Use of Private Counsel.--Section 1347 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4083) is amended by adding at the end
the following new subsection:
``(c) Use of Private Counsel.--
``(1) Fee schedule.--The Administrator shall establish a
fee schedule for payment of private counsel used to represent
the Administrator in controversies, actions, and proceedings in
connection with the National Flood Insurance Program under this
title.
``(2) Requirement for preauthorization.--The Administrator
shall require any private counsel obtained in connection with
any controversy, action, or proceeding in connection with the
National Flood Insurance Program under this title to obtain
authorization from the Administrator before taking any major
action associated with such controversy, action, or proceeding,
which shall include settlement, hiring experts, and such other
actions as the Administrator shall specify.''.
SEC. 6. IMPROVEMENT OF OVERSIGHT OF ENGINEERS.
(a) In General.--Part C of chapter 2 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at
the end the following new section:
``SEC. 1349. OVERSIGHT OF ENGINEERS.
``(a) Qualifications.--The Administrator shall require that any
individual that provides engineering services in connection with flood
insurance coverage provided under this title, including inspections
under section 1306(e) and services in connection with assessing any
claim for losses covered by a policy for such coverage, shall--
``(1) have registered with the Administrator and certified
to the Administrator that the engineer is professionally
licensed to practice as an engineer;
``(2) have expertise in a particular discipline of
engineering or act within the area of their competency, as the
Administrator shall require; and
``(3) be certified by the Administrator pursuant to
subsection (b).
``(b) Certification by FEMA.--
``(1) Requirement.--The Administrator shall carry out a
program under this subsection to certify engineers as qualified
to provide engineering services in connection with flood
insurance coverage provided under this title.
``(2) Contents.--The program under this subsection shall--
``(A) include an initial training seminar;
``(B) provide such standards and testing
requirements as the Administrator shall establish; and
``(C) require an annual renewal of certification
through continuing education.
``(c) Fees.--
``(1) Schedule; collection.--The Administrator shall
establish and collect fees using a standardized fee schedule
for all engineering services provided in connection with flood
insurance coverage provided under this title, which schedule
shall be similar to the fee schedule of the Administrator used
for companies adjusting claims under such coverage.
``(2) Deposit.--Any fees collected under paragraph (1)
section shall be deposited into the National Flood Insurance
Fund pursuant to section 1310(b)(6).
``(d) Identification Numbers.--The Administrator shall establish a
system to provide a unique numerical identifier for each engineer that
provides engineering services in connection with flood insurance
coverage provided under this title to assist in tracking past
performance in the provision of such services.
``(e) Submission of Documentation.--In the case of any insurance
company participating in the Write Your Own program (as such term is
defined in section 100202 of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4004)):
``(1) To write your own insurers.--The Administrator
shall--
``(A) require all such participating insurance
companies to obtain from providers of engineering
services provided in connection with flood insurance
coverage provided under this title, including any sub-
contractors,
``(i) documentation sufficient to itemize
and disaggregate the costs and fees for such
services, including the costs and fees for any
subcontractors; and
``(ii) all photos, notes, draft reports,
and other documentation relating to providing
such services in connection with a claim under
such coverage;
``(B) make available to such participating
insurance companies the fee schedule established under
subsection (c) and such other information as may be
necessary to enable such participating insurance
companies to determine whether the costs and fees
charged by providers of engineering services are
reasonable in relation to the services provided.
``(2) To fema.--The Administrator shall require each such
insurance company to submit to the Administrator, before any
reimbursement or other allowance, payment, or compensation is
provided under the Write Your Own program in connection with
engineering services provided, all supporting documentation
relating to such engineering services.''.
(b) Use of Fees.--Subsection (a) of section 1310 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
(1) by redesignating paragraphs (7) and (8) as paragraphs
(9) and (10), respectively; and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) to the extent that fees are deposited in the Fund
pursuant to section 1349(c)(2), for costs associated with
carrying out systems for certification and identification under
subsections (b) and (d), respectively, of section 1349;''.
SEC. 7. PUBLICLY SEARCHABLE ONLINE REGISTRY.
Part C of chapter 2 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081 et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new section:
``SEC. 1350. PUBLICLY SEARCHABLE ONLINE REGISTRY.
``(a) Establishment and Maintenance.--The Administrator shall
provide for the establishment and maintenance of a national registry,
organized by State of residence, of all companies and individuals
providing services relating to the selling, writing, or servicing of
flood insurance made available under this title or relating to the
adjusting of claims under such flood insurance, which shall include all
insurance companies participating in the Write Your Own program (as
such term is defined in section 100202 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4004)) and all individuals
participating in the direct servicing program, including--
``(1) all individuals selling and writing policies for
flood insurance coverage under this title;
``(2) all companies and individuals providing adjusting
services in connection with such flood insurance;
``(3) all companies and individuals providing engineering
services in connection with such flood insurance,
identification of engineers using the unique numerical
identifier assigned pursuant to section 1349(d), and
information regarding past performance in providing such
services, including identification of cases worked on, cases
that involved litigation, and any association of the engineer
with any company convicted of fraud;
``(4) information identifying all penalties, fines, and
criminal convictions of all such companies and individuals
relating to the operation of the national flood insurance
program; and
``(5) information identifying any conviction or penalty
assessed for fraud pertaining to any such company or
individual.
``(b) Public Availability.--The Administrator shall ensure that the
registry required to be established and maintained under this section
is publicly available online in a manner that provides the capacity to
search the registry by the name of the company or individual.
``(c) Annual Review.--The Comptroller General of the United States
shall conduct a review of the registry established and maintained under
this section on a biennial basis to ensure its accuracy and currency.
``(d) Administration.--
``(1) Nonprofit organization.--The Administrator shall
enter into a contract with an appropriate nonprofit
organization to establish and maintain the registry under this
section.
``(2) Authorization of appropriations.--There is authorized
to be appropriated for payments under the contract under
paragraph (1) such sums as may be necessary for establishment
and maintenance of the national registry under this section.''.
SEC. 8. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL FLOOD
INSURANCE PROGRAM.
Part C of chapter 2 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081 et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new section:
``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL
FLOOD INSURANCE PROGRAM.
``(a) Offense.--It shall be unlawful, in the preparation,
production, or submission of any report in connection with the proving
or adjusting of a claim for flood insurance coverage made available
under this title, including any engineering report or claims adjustment
report, to knowingly engage in the practice of engineering without a
license, to knowingly forge any such report, or to knowingly make any
materially false, fictitious, or fraudulent statement or representation
in such a report.
``(b) Penalties.--Whoever violates subsection (a) shall be subject
to any one or more of the following penalties:
``(1) Criminal.--In the case of a person who is an
individual, imprisonment for not more than 18 months.
``(2) Civil.--Such civil penalties as the Administrator,
the Secretary of Homeland Security, and the Attorney General
shall, by regulation, establish, which may include civil
monetary penalties and fines, suspension and debarment from
participation in the National Flood Insurance Program, and such
other civil sanctions as such officials consider appropriate.
In the case of any fine or monetary penalty collected pursuant
to this paragraph, such amounts collected shall be paid to the
owner of the property for which the claim involved was made.
``(c) Exemption.--The offense under subsection (a) is exempted from
the applicability of the fine provided under section 3571 of title 18,
United States Code.''.
SEC. 9. WHISTLEBLOWER PROTECTION FOR EMPLOYEES.
(a) In General.--Part C of chapter 2 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the
preceding provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1352. WHISTLEBLOWER PROTECTION FOR EMPLOYEES.
``(a) In General.--No person shall terminate or in any other way
discriminate against, or cause to be terminated or discriminated
against, any covered employee or any authorized representative of
covered employees by reason of the fact that such employee or
representative, whether at the initiative of the employee or in the
ordinary course of the duties of the employee (or any person acting
pursuant to a request of the employee), has--
``(1) provided, caused to be provided, or is about to
provide or cause to be provided, information to the employer,
the Agency, the Federal Bureau of Investigation, or any other
State, local, or Federal, government authority or law
enforcement agency relating to any violation of, or any act or
omission that there are reasonable grounds to believe (whether
or not the employee actually has such belief) to be a violation
of, any provision of any law relating to the National Flood
Insurance Program or any rule, order, standard, or prohibition
prescribed by the Agency in connection with the National Flood
Insurance Program;
``(2) testified or will testify in any proceeding resulting
from the administration or enforcement of any provision of any
law relating to the National Flood Insurance Program or any
rule, order, standard, or prohibition prescribed by the Agency
in connection with the National Flood Insurance program;
``(3) filed, instituted, or caused to be filed or
instituted any proceeding under the National Flood Insurance
Program; or
``(4) objected to, or refused to participate in, any
activity, policy, practice, or assigned task that the employee
(or other such person) reasonably believed to be in violation
of any law, rule, order, standard, or prohibition, subject to
the jurisdiction of, or enforceable by, the Agency in
connection with the National Flood Insurance Program.
``(b) Procedures and Timetables.--
``(1) Complaint.--
``(A) In general.--A person who believes that he or
she has been discharged or otherwise discriminated
against by any person in violation of subsection (a)
may, not later than 180 days after the date on which
such alleged violation occurs, file (or have any person
file on his or her behalf) a complaint with the
Administrator alleging such discharge or discrimination
and identifying the person responsible for such act.
``(B) Actions of administrator.--Upon receipt of
such a complaint, the Administrator shall notify, in
writing, the person named in the complaint who is
alleged to have committed the violation, of--
``(i) the filing of the complaint;
``(ii) the allegations contained in the
complaint;
``(iii) the substance of evidence
supporting the complaint; and
``(iv) opportunities that will be afforded
to such person under paragraph (2).
``(2) Investigation by administrator.--
``(A) In general.--Not later than 60 days after the
date of receipt of a complaint filed under paragraph
(1), and after affording the complainant and the person
named in the complaint who is alleged to have committed
the violation that is the basis for the complaint an
opportunity to submit to the Administrator a written
response to the complaint and an opportunity to meet
with a representative of the Administrator to present
statements from witnesses, the Administrator shall--
``(i) initiate an investigation and
determine whether there is reasonable cause to
believe that the complaint has merit; and
``(ii) notify the complainant and the
person alleged to have committed the violation
of subsection (a), in writing, of such
determination.
``(B) Notice of relief available.--If the
Administrator concludes that there is reasonable cause
to believe that a violation of subsection (a) has
occurred, the Administrator shall, together with the
notice under subparagraph (A)(ii), issue a preliminary
order providing the relief prescribed by paragraph
(4)(B).
``(C) Request for hearing.--Not later than 30 days
after the date of receipt of notification of a
determination of the Administrator under this
paragraph, either the person alleged to have committed
the violation or the complainant may file objections to
the findings or preliminary order, or both, and request
a hearing on the record. The filing of such objections
shall not operate to stay any reinstatement remedy
contained in the preliminary order. Any such hearing
shall be conducted expeditiously, and if a hearing is
not requested in such 30-day period, the preliminary
order shall be deemed a final order that is not subject
to judicial review.
``(3) Grounds for determination of complaints.--
``(A) In general.--The Administrator shall dismiss
a complaint filed under this subsection, and shall not
conduct an investigation otherwise required under
paragraph (2), unless the complainant makes a prima
facie showing that any behavior described in paragraphs
(1) through (4) of subsection (a) was a contributing
factor in the unfavorable personnel action alleged in
the complaint.
``(B) Rebuttal evidence.--Notwithstanding a finding
by the Administrator that the complainant has made the
showing required under subparagraph (A), no
investigation otherwise required under paragraph (2)
shall be conducted, if the employer demonstrates, by
clear and convincing evidence, that the employer would
have taken the same unfavorable personnel action in the
absence of that behavior.
``(C) Evidentiary standards.--The Administrator may
determine that a violation of subsection (a) has
occurred only if the complainant demonstrates that any
behavior described in paragraphs (1) through (4) of
subsection (a) was a contributing factor in the
unfavorable personnel action alleged in the complaint.
Relief may not be ordered under subparagraph (A) if the
employer demonstrates by clear and convincing evidence
that the employer would have taken the same unfavorable
personnel action in the absence of that behavior.
``(4) Issuance of final orders; review procedures.--
``(A) Timing.--Not later than 120 days after the
date of conclusion of any hearing under paragraph (2),
the Administrator shall issue a final order providing
the relief prescribed by this paragraph or denying the
complaint. At any time before issuance of a final
order, a proceeding under this subsection may be
terminated on the basis of a settlement agreement
entered into by the Administrator, the complainant, and
the person alleged to have committed the violation.
``(B) Penalties.--
``(i) Order of administrator.--If, in
response to a complaint filed under paragraph
(1), the Administrator determines that a
violation of subsection (a) has occurred, the
Administrator shall order the person who
committed such violation--
``(I) to take affirmative action to
abate the violation;
``(II) to reinstate the complainant
to his or her former position, together
with compensation, including twice the
amount of back pay due, and restore the
terms, conditions, and privileges
associated with his or her employment;
and
``(III) to provide compensatory
damages to the complainant.
``(ii) Penalty.--If an order is issued
under clause (i), the Administrator, at the
request of the complainant, shall assess
against the person against whom the order is
issued, a sum equal to the aggregate amount of
all costs and expenses (including attorney fees
and expert witness fees) reasonably incurred,
as determined by the Administrator, by the
complainant for, or in connection with, the
bringing of the complaint upon which the order
was issued.
``(C) Penalty for frivolous claims.--If the
Administrator finds that a complaint under paragraph
(1) is frivolous or has been brought in bad faith, the
Administrator may award to the prevailing employer a
reasonable attorney fee, not exceeding $1,000, to be
paid by the complainant.
``(D) De novo review.--
``(i) Failure of the administrator to
act.--If the Administrator has not issued a
final order within 210 days after the date of
filing of a complaint under this subsection, or
within 90 days after the date of receipt of a
written determination, the complainant may
bring an action at law or equity for de novo
review in the appropriate district court of the
United States having jurisdiction, which shall
have jurisdiction over such an action without
regard to the amount in controversy, and which
action shall, at the request of either party to
such action, be tried by the court with a jury.
``(ii) Procedures.--A proceeding under
clause (i) shall be governed by the same legal
burdens of proof specified in paragraph (3).
The court shall have jurisdiction to grant all
relief necessary to make the employee whole,
including injunctive relief and compensatory
damages, including--
``(I) reinstatement with the same
seniority status that the employee
would have had, but for the discharge
or discrimination;
``(II) compensation in the amount
equal to twice the amount of back pay
due, with interest; and
``(III) compensation for any
special damages sustained as a result
of the discharge or discrimination,
including litigation costs, expert
witness fees, and reasonable attorney
fees.
``(E) Other appeals.--Unless the complainant brings
an action under subparagraph (D), any person adversely
affected or aggrieved by a final order issued under
subparagraph (A) may file a petition for review of the
order in the United States Court of Appeals for the
circuit in which the violation with respect to which
the order was issued, allegedly occurred or the circuit
in which the complainant resided on the date of such
violation, not later than 60 days after the date of the
issuance of the final order of the Administrator under
subparagraph (A). Review shall conform to chapter 7 of
title 5, United States Code. The commencement of
proceedings under this subparagraph shall not, unless
ordered by the court, operate as a stay of the order.
An order of the Administrator with respect to which
review could have been obtained under this subparagraph
shall not be subject to judicial review in any criminal
or other civil proceeding.
``(5) Failure to comply with order.--
``(A) Actions by the administrator.--If any person
has failed to comply with a final order issued under
paragraph (4), the Administrator may file a civil
action in the United States district court for the
district in which the violation was found to have
occurred, or in the United States district court for
the District of Columbia, to enforce such order. In
actions brought under this paragraph, the district
courts shall have jurisdiction to grant all appropriate
relief including injunctive relief and compensatory
damages.
``(B) Civil actions to compel compliance.--A person
on whose behalf an order was issued under paragraph (4)
may commence a civil action against the person to whom
such order was issued to require compliance with such
order. The appropriate United States district court
shall have jurisdiction, without regard to the amount
in controversy or the citizenship of the parties, to
enforce such order.
``(C) Award of costs authorized.--The court, in
issuing any final order under this paragraph, may award
costs of litigation (including reasonable attorney and
expert witness fees) to any party, whenever the court
determines such award is appropriate.
``(D) Mandamus proceedings.--Any nondiscretionary
duty imposed by this section shall be enforceable in a
mandamus proceeding brought under section 1361 of title
28, United States Code.
``(c) Unenforceability of Certain Agreements.--
``(1) No waiver of rights and remedies.--Except as provided
under paragraph (3), and notwithstanding any other provision of
law, the rights and remedies provided for in this section may
not be waived by any agreement, policy, form, or condition of
employment, including by any pre-dispute arbitration agreement.
``(2) No pre-dispute arbitration agreements.--Except as
provided under paragraph (3), and notwithstanding any other
provision of law, no pre-dispute arbitration agreement shall be
valid or enforceable to the extent that it requires arbitration
of a dispute arising under this section.
``(3) Exception.--Notwithstanding paragraphs (1) and (2),
an arbitration provision in a collective bargaining agreement
shall be enforceable as to disputes arising under subsection
(a)(4), unless the Administrator determines, by rule, that such
provision is inconsistent with the purposes of this title.
``(d) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Emergency Management Agency.
``(2) Agency.--The term `Agency' means the Federal
Emergency Management Agency.
``(3) Covered employee.--The term `covered employee' means
any individual performing tasks related to the National Flood
Insurance Program, including such employees of--
``(A) the Agency;
``(B) the Department of Homeland Security;
``(C) an insurance company participating in the
Write Your Own program (as such term is defined in
section 100202 of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4004));
``(D) a third-party administrator for an insurance
company described in subparagraph (C);
``(E) an engineer, or engineering company, engaged
in providing engineering services in connection with
the National Flood Insurance Program, or a sub-
contractor of such an engineer or company; and
``(F) a claims adjuster, or claims adjusting
company, engaged in providing claims adjusting services
in connection with the National Flood Insurance
Program, or a sub-contractor of such an claims adjuster
or company.''.
(b) Availability of Flood Insurance Fund.--Subsection (a) of
section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C.
4017(a)), as amended by section 6(b) of this Act, is further amended by
inserting after paragraph (7) the following new paragraph:
``(7) for penalties, relief, and costs under section
1352(b), to the extent ordered to be paid by the Administrator
or any officer or employee of the Federal Emergency Management
Agency;''.
SEC. 10. ENGINEERING FIRM INDEPENDENCE.
Part C of chapter 2 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081 et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new
sections:
``SEC. 1353. SELECTION AND REPLACEMENT OF CLAIMS ADJUSTING AND
ENGINEERING COMPANIES.
``(a) In the case of an insurance company participating in the
Write Your Own program (as such term is defined in section 100202 of
the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004))
that engages any adjusting company or engineering company in the
adjustment of a claim for losses resulting from structural damage to a
property under a policy for flood insurance coverage made available
under this title--
``(1) no representative of the adjusting company or
engineering company may visit the property before the
expiration of the 30-day period beginning upon the date that
the insurance company provides notice to the owner of the
property that such adjusting or engineering company has been
engaged, unless the owner, in writing, consents to an earlier
visit; and
``(2) if the policyholder submits to the insurance company
written notice of disapproval of the adjusting or engineering
company selected by such insurance company before a
representative of the adjusting or engineering company first
visits the property, such insurance company shall--
``(A) within 30 days after the policyholder's
notification of such disapproval--
``(i) submit to the Administrator notice of
the policyholders notification of such
disapproval; and
``(ii) submit to the policyholder a list of
not less than three other adjusting or
engineering companies, as the case may be, that
are unaffiliated with the disapproved company
to conduct the activities involved in adjusting
such claim; and
``(B) replace the original adjusting or engineering
company with the company from such list selected by the
policyholder, if the policyholder notifies the
insurance company and the Administrator, in writing, of
the policyholder's selected company within 30 days
after receiving the list required under subparagraph
(A).
``SEC. 1354. ENGINEERING FIRM INDEPENDENCE.
``(a) In General.--It shall be unlawful, in participating in the
Write Your Own program (as such term is defined in section 100202 of
the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4004)), to engage in any act or practice that violates the independence
of an engineering company or individual engineer providing engineering
services in connection with flood insurance coverage made available
under this title.
``(b) Violations.--For purposes of subsection (a), acts or
practices that violate the independence of an engineering company or
individual engineer shall include--
``(1) the preparation or submission of any engineering
report in connection with a claim for damages under flood
insurance coverage in which a person with an interest in the
award of such damages compensates, coerces, extorts, colludes,
instructs, induces, bribes, or intimidates a person,
engineering firm, or other entity responsible for assessing
damages for the purpose of causing the damages assigned to be
based on any factor other than the independent judgment of the
engineering company or individual engineer;
``(2) mischaracterizing, or suborning any
mischaracterization of, the damages involved in any such claim;
``(3) seeking to influence an engineer or otherwise to
encourage a targeted value of damages in order to facilitate
the making of a report; and
``(4) withholding or threatening to withhold timely payment
for an engineering report or for engineering services rendered.
``(c) Exceptions.--The requirements of subsection (b) shall not be
construed as prohibiting an insurance company participating in the
Write Your Own program, a claims adjusting company, or an engineering
company from asking an engineer to undertake one or more of the
following:
``(1) Consider additional information.
``(2) Provide further detail, substantiation, or
explanation for an assessment of damages.
``(3) Correct errors in an engineering report.
``(d) Prohibitions on Conflicts of Interest.--No engineer engaged
by an insurance company participating in the Write Your Own program to
assess flood damages to a property covered by flood insurance made
available under this title may have an ownership or financial interest
in--
``(1) such insurance company, any claims adjusting company,
or any other company, other than the company that employs such
engineer, that is connected with assessing such damages; or
``(2) the property being assessed.
``(e) Mandatory Reporting.--An insurance company participating in
the Write Your Own program which knows, upon or before submitting to
the Administrator a claim for damages under flood insurance coverage
made available under this title, of a violation of the independence
standards under this section, may not submit such a claim unless the
insurance company includes, together with such claim, a certification
that the violation involved does not materially mistake the value of
the damages and documentation to support such claim.''.
SEC. 11. GAO REPORTS.
(a) Report on Effects of Global Warming on Flood Insurance Program
Solvency.--Not later than the expiration of the 18-month period
beginning on the date of the enactment of this Act, the Comptroller
General of the United States shall submit to the Congress a report
analyzing the effects of global warming on the fiscal solvency of the
National Flood Insurance Program.
(b) Report on WYO Companies.--The Comptroller General of the United
States shall conduct a study of claims under flood insurance coverage
provided through insurance companies participating in the Write Your
Own program of the National Flood Insurance Program pursuant to losses
resulting from Hurricane Sandy of 2012, which shall determine--
(1) how much profit such insurers made pursuant to such
claims;
(2) how many of such claims were made and processed; and
(3) the amount of each such claim that was approved and
paid.
Not later than the expiration of the 12-month period beginning on the
date of the enactment of this Act, the Comptroller General shall submit
a report to the Congress regarding the conclusions of the study
conducted pursuant to this subsection.
SEC. 12. REGULATIONS.
Not later than the expiration of the 12-month period beginning on
the date of the enactment of this Act, the Administrator of the Federal
Emergency Management Agency shall issue regulations necessary to carry
out this Act and the amendments made by this Act.
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