[House Report 111-537]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-537
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5114) TO EXTEND THE
AUTHORIZATION FOR THE NATIONAL FLOOD INSURANCE PROGRAM, TO IDENTIFY
PRIORITIES ESSENTIAL TO REFORM AND ONGOING STABLE FUNCTIONING OF THE
PROGRAM, AND FOR OTHER PURPOSES
_______
July 14, 2010.--Referred to the House Calendar and ordered to be
printed
_______
Ms. Matsui, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 1517]
The Committee on Rules, having had under consideration
House Resolution 1517, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 5114, the
``Flood Insurance Reform Priorities Act of 2010,'' under a
structured rule. The resolution provides one hour of general
debate equally divided and controlled by the chair and ranking
minority member of the Committee on Financial Services. The
resolution waives all points of order against consideration of
the bill except those arising under clause 9 or 10 of rule XXI.
The resolution provides that the amendment in the nature of a
substitute recommended by the Committee on Financial Services
shall be considered as an original bill for the purpose of
amendment and shall be considered as read. The resolution
waives all points of order against the amendment in the nature
of a substitute except those arising under clause 10 of rule
XXI. This waiver does not affect the point of order available
under clause 9 of rule XXI (regarding earmark disclosure). The
resolution makes in order only those amendments printed in this
report. The amendments made in order may be offered only in the
order printed in this report, may be offered only by a Member
designated in this report, shall be considered as read, shall
be debatable for the time specified in this report equally
divided and controlled by the proponent and an opponent, shall
not be subject to amendment, and shall not be subject to a
demand for division of the question. The resolution waives all
points of order against the amendments made in order except
those arising under clause 9 or 10 of rule XXI. The resolution
provides one motion to recommit with or without instructions.
The resolution provides that the Chair may entertain a motion
that the Committee rise only if offered by the chair of the
Committee on Financial Services or a designee. Finally, the
resolution provides that the Chair may not entertain a motion
to strike out the enacting words of the bill.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill (except those arising under clause 9 or 10 of rule
XXI) includes a waiver of section 303 of the Congressional
Budget Act (regarding outyear spending and revenues). The
waiver of all points of order against the committee amendment
in the nature of a substitute (except those arising under
clause 10 of rule XXI) includes a waiver of section 303 of the
Congressional Budget Act (regarding outyear spending and
revenues).
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 462
Date: July 14, 2010.
Measure: H.R. 5114.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #17, which
would strike section 18 (Grants for Outreach to Property Owners
and Renters).
Results: Defeated 2-6.
Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea;
Slaughter--Nay.
Rules Committee record vote No. 463
Date: July 14, 2010.
Measure: H.R. 5114.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Garrett (NJ), #30, which would
extend the authorizations in the bill to 2012, instead of 2015
as is in the bill.
Results: Defeated 2-6.
Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea;
Slaughter--Nay.
Rules Committee record vote No. 464
Date: July 14, 2010.
Measure: H.R. 5114.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Neugebauer (TX), #58, which
would apply the phase in of full actuarial rates that begins
after three years for certain types of pre-FIRM properties
(nonresidential properties, second homes, and newly sold pre-
FIRM residences) to all pre-FIRM properties. The phase in
period, effective date and transition period remain the same.
Results: Defeated 2-6.
Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea;
Slaughter--Nay.
Rules Committee record vote No. 465
Date: July 14, 2010.
Measure: H.R. 5114.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Bachmann (MN), #43, which
would strike section 22 (relating to flood insurance advocate).
It also would require the GAO to issue a report on common
problems insured individuals have in their interactions with
FEMA and on laws that impose compliance burdens on insurers or
FEMA. This amendment would direct the GAO to identify potential
legislative, administrative, or regulatory changes that may be
appropriate to mitigate such problems.
Results: Defeated 2-6.
Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea;
Slaughter--Nay.
Rules Committee record vote No. 466
Date: July 14, 2010.
Measure: H.R. 5114.
Motion by: Mr. Dreier.
Summary of motion: To report an open rule.
Results: Defeated 2-6.
Vote by Members: Matsui--Nay; Cardoza--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Dreier--Yea; Foxx--Yea;
Slaughter--Nay.
SUMMARY OF AMENDMENTS MADE IN ORDER
1. Waters (CA): Would (1) Phase out subsidized premiums for
severe repetitive loss properties, substantially damaged or
improved properties and policyholders who voluntarily allow
flood coverage to lapse. (2) Clarify application of actuarial
rate phase-in for pre-FIRM properties sold after enactment. (3)
Provide preferred rate premium for properties participating in
NFIP during newly established, 5-year delay in mandatory flood
insurance purchase requirement. (4) Expand availability of
installment premium payment program to all policyholders. (5)
Clarify that the FEMA Director may work directly with property
owners to make mitigation grants for certain repetitive loss
properties where States or communities are either unable or
unwilling to address repetitive loss issues with a property
owner. (6) Allow commercial properties with swimming pools
located below the base flood level to enclose those pools with
breakaway walls outside of hurricane season. (7) Require FEMA
to review mapping of surrounding properties following
successful appeal of hazard designation in newly mapped areas.
(8) Clarify ability of FEMA Administrator to use demolition and
rebuilding as mitigation techniques. (9) Require study of the
impact of working waterfronts on storm and flood risk. (10)
Establish relevant flood insurance related studies. (11)
Conform rule writing and implementation of various provisions
of bill. (12) Include other technical improvements. (20
minutes)
2. Putnam (FL): Would require the FEMA to annually submit a
report (no later than December 31 of each calendar year) to
Congress on the effectiveness of grants awarded to local
government agencies, the activities conducted and the effect of
such activities on the retention or acquisition of flood
insurance coverage. (10 minutes)
3. Driehaus (OH), Welch (VT), Hinchey (NY): Would provide
that if the owner of any property located in an area described
in section 102(i)(1) of the Flood Disaster Protection Act of
1973 obtains a letter of map amendment during the 5-year period
for such area referred to in such section, FEMA shall reimburse
such owner, or such entity or jurisdiction acting on such
owner's behalf, for any costs incurred in obtaining such
letter. (10 minutes)
4. Flake, Jeff (AZ): Would prohibit funds made available
for grants from being used for earmarks. (10 minutes)
5. Taylor (MS): Would prohibit the Write Your Own insurance
companies that contract with NFIP from excluding coverage of
wind damage under their own policies solely because flooding
also caused damage to the property. It would establish
requirements for adjustment by WYO insurers when there are
claims on the same property, from the same event, for flood
damage covered by NFIP and for wind damage covered by the WYO
insurer. (10 minutes)
6. Miller, Candice (MI): Would require that the Government
Accountability Office conduct a study on ways the private
insurance market can contribute to insuring against flood
damage; the impact on the National Flood Insurance Program if
communities were to opt out; and the feasibility of
regionalizing the National Flood Insurance Program so there is
no cross-subsidization between regions. (10 minutes)
7. Boswell (IA): Would ensure occupants have relevant
information on appropriate evacuation routes, and ensure the
outreach program under the bill includes relevant information
on where to obtain coverage. (10 minutes)
8. Hill (IN): Would include ``identifying ways to assist
communities in efforts to fund the accreditation of flood
protection systems'' as a function of the Office of the Flood
Insurance Advocate. (10 minutes)
9. Loebsack (IA): Would require FEMA to notify a local
television and radio station of proposed flood elevation
determinations in addition to the current requirement of
publication in a prominent local newspaper. Would also require
FEMA to make such notifications for communities that have not
yet been issued a Letter of Final Determination through the
flood insurance map modernization process at the time of
enactment. (10 minutes)
10. McMahon (NY): Would (1) permit federal grants to
educate local real estate agents in communities participating
in the NFIP regarding the program and the availability of
coverage under the program for owners and renters of properties
and (2) establish coordination and liaisons with such agents to
facilitate purchase of coverage and increase awareness of flood
risk reduction. (10 minutes)
11. Murphy, Scott (NY): Would require all funds authorized
under the Act to be expended in a manner consistent with the
manual on Standards of Ethical Conduct for Employees of the
Executive Branch. (10 minutes)
TEXT OF AMENDMENTS TO BE MADE IN ORDER
1. An Amendment To Be Offered by Representative Waters of California,
or Her Designee, Debatable for 20 Minutes
Page 9, strike lines 1 through 3 and insert the following:
SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN PRE-FIRM PROPERTIES,
SEVERE REPETITIVE LOSS PROPERTIES, AND PROPERTIES
SUBSTANTIALLY DAMAGED OR SUBSTANTIALLY IMPROVED.
Page 9, lines 7 and 8, strike ``paragraph (5)'' and insert
``paragraph (7)''.
Page 9, lines 21 and 22, strike ``used as principal
residences''.
Page 10, lines 5 and 6, strike ``date of enactment'' and
insert ``effective date of this paragraph, pursuant to section
5(c)(1)''.
Page 10, line 7, strike the quotation marks and the last
period.
Page 10, after line 7, insert the following:
``(5) Severe repetitive loss properties.--Any severe
repetitive loss property, as such term is defined in
section 1361A(b), that is so designated as such as a
result of losses occurring on or after the date of the
enactment of the Flood Insurance Reform Priorities Act
of 2010.
``(6) Properties substantially damaged or
substantially improved.--Any property that, on or after
the date of the enactment of the Flood Insurance Reform
and Priorities Act of 2010, has experienced or
sustained--
``(A) substantial damage exceeding 50 percent
of the fair market value of such property; or
``(B) substantial improvement exceeding 30
percent of the fair market value of such
property.''.
Page 10, line 20, strike ``paragraph (5)'' and insert
``paragraph (7)''.
Page 11, line 7, strike ``or (4)'' and insert ``(4), (5), or
(6)''.
Page 12, line 21, strike ``and (4)'' and insert ``(4), (5),
and (6)''.
Page 13, line 6, strike ``subsection'' and insert
``subsections''.
Page 13, line 13, strike ``September 30, 2008'' and insert
``September 30, 2007''.
Page 14, line 22, strike the quotation marks and the last
period.
Page 14, after line 22, insert the following:
``(j) Availability of Preferred Risk Rating Method
Premiums.--The preferred risk rate method premium shall be
available for flood insurance coverage for properties located
in areas referred to in subsection (i)(1) and during the time
period referred to in subsection (i)(1).''.
Page 15, line 13, before ``Section'' insert ``(a) In
General.--''.
Page 17, after line 3, insert the following:
(b) Regulation or Notice.--The Administrator of the Federal
Emergency Management Agency shall issue an interim final rule
or notice to implement this section and the amendments made by
this section as soon as practicable after the date of the
enactment of this Act.
Strike line 20 on page 18 and all that follows through page
19, line 2, and insert the following:
(b) Regulations.--The Administrator of the Federal Emergency
Management Agency shall promulgate regulations to implement
this section and the amendments made by this section as soon as
practicable, but not more than 18 months after the date of the
enactment of this Act. Section 5 may not be construed to annul,
alter, affect, authorize any waiver of, or establish any
exception to, the requirement under the preceding sentence.
Page 19, after line 8, insert the following new section:
SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR PROPERTIES PROTECTED BY A
FLOOD-PROTECTION SYSTEM FROM LESS THAN A 100-YEAR
FREQUENCY FLOOD.
Section 1307 of the National Flood Insurance Act of 1968 (42
U.S.C. 4014) is amended by adding at the end the following new
subsection:
``(g) Except as provided in subsection (f) and
notwithstanding any other provision of law, flood insurance
coverage shall be made available for a property that the
Director determines is protected by a flood-protection system
that does not provide protection against a 100-year frequency
flood at premium rates that reflect a discount for the actual
protection against flood risk afforded by such flood-protection
system.''.
Page 21, after line 21, insert the following new section:
SEC. 11. PROHIBITION OF EXTENSION OF SUBSIDIZED RATES TO LAPSED
POLICIES.
Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new
subsection:
``(i) Prohibition of Extension of Subsidized Rates to Lapsed
Policies.--The Director shall not provide flood insurance
coverage under this title to any prospective insured at a rate
less than the applicable estimated risk premium rates for the
area (or subdivision thereof) for any policy under the flood
insurance program that has lapsed in coverage, as a result of
the deliberate choice of the holder of such policy.''.
Page 22, line 25, strike the semicolon and insert a period.
Page 22, after line 25, insert the following new sections:
SEC. 13. COMMUNITY OUTREACH PLAN FOR UPDATING FLOODPLAIN AREAS AND
FLOOD-RISK ZONES.
The Administrator of the Federal Emergency Management Agency
shall, not later than the expiration of the 60-day period
beginning upon the date of the enactment of this Act, submit to
the Congress a community outreach plan for the updating of
floodplain areas and flood-risk zones under section 1360(f) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4101(f)).
SEC. 14. NOTIFICATION OF ESTABLISHMENT OF FLOOD ELEVATIONS.
Section 1360 of the National Flood Insurance Act of 1968 (42
U.S.C. 4101) is amended by adding at the end the following new
subsection:
``(l) Notification to Members of Congress of Map
Modernization .--Upon any revision or update of any floodplain
area or flood-risk zone pursuant to subsection (f), any
decision pursuant to subsection (f)(1) that such revision or
update is necessary, any issuance of preliminary maps for such
revision or updating, or any other significant action relating
to any such revision or update, the Director shall notify the
Senators for each State affected, and each Member of the House
of Representatives for each congressional district affected, by
such revision or update in writing of the action taken.''.
Page 27, line 8, strike ``LOW-INCOME POLICYHOLDERS'' and
insert ``RESIDENTIAL PROPERTIES''.
Page 27, line 13, strike ``Low-income Policyholders'' and
insert ``Residential Properties''.
Page 27, strike line 16 and all that follows through ``is
employed'' in line 22.
Page 27, line 23, strike ``monthly''.
Page 27, after line 23, insert the following new section:
SEC. 19. TERMINATION OF FORCE-PLACED INSURANCE.
Section 102(e) of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a(e)) is amended--
(1) by redesignating paragraphs (3) and (4) as
paragraphs (5) and 6), respectively; and
(2) by adding inserting after paragraph (2) the
following new paragraphs:
``(3) Termination of force-placed insurance.--Within
15 days of receipt by the lender or servicer of a
confirmation of a borrower's existing flood insurance
coverage, the lender or servicer shall--
``(A) terminate the force-placed insurance;
and
``(B) refund to the borrower all force-placed
insurance premiums paid by the borrower during
any period during which the borrower's flood
insurance coverage and the force-placed flood
insurance coverage were each in effect, and any
related fees charged to the borrower with
respect to the force-placed insurance during
such period.
``(4) Sufficiency of demonstration.--A lender or
servicer for a loan shall accept any reasonable form of
written confirmation from a borrower of existing flood
insurance coverage, which shall include the existing
flood insurance policy number along with the identity
of, and contact information for, the insurance company
or agent.''.
Page 30, after line 20, insert the following new section:
SEC. 21. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR
INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.
(a) Direct Grants to Owners.--Section 1323 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4030) is amended--
(1) in the section heading, by inserting ``DIRECT''
before ``GRANTS''; and
(2) in the matter in subsection (a) that precedes
paragraph (1)--
(A) by inserting ``, to owners of such
properties,'' before ``for mitigation
actions''; and
(B) by striking ``1'' and inserting ``two''.
(b) Availability of Funds.--Paragraph (9) of section 1310(a)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a))
is amended by inserting ``which shall remain available until
expended,'' after ``any fiscal year,''.
Page 31, line 4, strike ``(h)'' and insert ``(i)''.
Page 33, line 14, strike ``(g)'' and insert ``(i)''.
Page 34, line 19, strike ``and''.
Page 34, line 22, strike the period and insert ``; and''.
Page 34, after line 22 insert the following:
``(F) the number of flood-related major
disaster or emergency declarations made by the
President with respect to the relevant area
under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) during the preceding five years.
Page 34, line 25, strike ``(h)'' and insert ``(i)''.
Page 35, after line 4, insert the following new subsection:
``(g) Coordination With Other Agencies.--A local governmental
agency that receives a grant under this section, and an entity
that receives amounts pursuant to subsection (f), may
coordinate or contract with other agencies and entities having
particular capacities, specialties, or experience with respect
to certain populations or constituencies, including elderly or
disabled families or persons, to carry out activities described
in subsection (b) with respect to such populations or
constituencies.''.
Page 35, line 5, strike ``(g)'' and insert ``(h)''.
Page 35, line 14, strike ``(h)'' and insert ``(i)''.
Page 35, after line 16, insert the following new section:
SEC. 24. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE
SEASON.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.), as amended by the preceding provisions of
this Act, is further amended by adding at the end the following
new section:
``SEC. 1327. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE
SEASON.
``In the case of any property that is otherwise in compliance
with the coverage and building requirements of the national
flood insurance program, the presence of an enclosed swimming
pool located at ground level or in the space below the lowest
floor of a building after November 30 and before June 1 of any
year shall have no effect on the terms of coverage or the
ability to receive coverage for such building under the
national flood insurance program established pursuant to this
title, if the pool is enclosed with non-supporting breakaway
walls.''.
Page 36, line 17, strike ``and'' and insert a comma.
Page 36, line 17, before the period insert ``, and the
national flood insurance program''.
Page 39, line 6, strike ``and''.
Page 39, line 10, strike the period and insert a semicolon.
Page 39, after line 10 insert the following:
``(E) facilitate the sharing of the best-
practices of the Federal Emergency Management
Agency amongst all offices of the Agency with
respect to the creation and updating of
floodplain maps;
``(F) not less than one year after receipt of
a request from a community, perform an economic
impact analysis for such community on the
economic impact of floodplain maps and
floodplain map determinations on small
businesses, lending, real estate development,
and other economic indicators within such
community;
``(G) establish a national arbitration panel
regarding flood map modernization, with panel
members consisting of experts in flood
insurance, flood map determination, real estate
development, structural engineering, and other
such experts, including a representative from
the Federal Emergency Management
Administration, to allow individuals or
communities impacted by a flood map revision to
challenge such a revision; such panel may,
under such terms and conditions it may
establish, temporarily suspend implementation
of a floodplain map pending such panel's review
of evidence submitted by such individuals or
communities as part of such challenge;
``(H) establish a process under which
scientific and engineering data, including maps
and an explanation of how the Director makes a
determination regarding a map revision, will be
made publicly available to any interested
individuals to be impacted by a flood map
revision; and
``(I) establish a process under which each
community to be impacted by a flood map
revision will be provided an open community
forum to consult with and ask questions of
representatives of the Federal Emergency
Management Administration.
Page 41, after line 8, insert the following new sections:
SEC. 29. TREATMENT OF PREVIOUSLY MAPPED AREAS.
Section 1360 of the National Flood Insurance Act of 1968 (42
U.S.C. 4101) is amended by adding at the end the following new
subsection:
``(k) Treatment of Previously Mapped Areas.--If the Director
issues a letter of map revision for an area or a portion of an
area to correct an error in a recently issued flood insurance
rate map and such letter results in the designation of such
area as not having special flood hazards, the Director shall
reexamine the designation of any areas bordering or abutting
the area that was the subject of such letter if such areas are
located within a special flood hazard area. The Director shall
inform the community and residents within such area of the
results of such examination no later than one year after the
date of the initial letter of map revision.
``SEC. 30. REMAPPING OF AREAS WITH IMPROVED LEVEES.
``Section 1360 of the National Flood Insurance Act of 1968
(42 U.S.C. 4101) is amended by adding at the end the following
new subsection:
```(a) Remapping of Areas With Improved Levees.--If at any
time any community, any State, the Army Corps of Engineers, or
any other entity improves any levee system that protects any
area that is located in an area having special flood hazards
and the Director determines that such improvement mitigates
flood risk in a manner that eliminates the risk of flooding in
the area, the Director shall--
```(1) revise and update the floodplain areas and
flood risk zones, and the flood insurance maps
reflecting such areas and zones, for the areas
protected by such levee system so that any requirement
under the Flood Disaster Protection Act of 1973 for
mandatory purchase of flood insurance does not apply to
such area; and
```(2) make the updated maps and any information
regarding such updating available to the affected
communities.'.''.
Page 41, line 12, strike ``Section'' and insert the
following:
(a) Flood Mitigation Assistance Program.--Section
Page 41, line 15, before the quotation marks insert ``of
properties to at least base flood elevation or greater, if
required by any local ordinance''.
Page 41, after line 15, insert the following:
(b) Sense of Congress.--It is the sense of Congress that
section 1366 of the Flood Insurance Act of 1968 (42 U.S.C.
4104c), as in effect on the day before the date of enactment of
this Act, authorized the Administrator of the Federal Emergency
Management Agency to consider property demolition and
rebuilding as eligible activities under the Flood Mitigation
Assistance Program. The purpose of the amendment made by
subsection (a) is to clarify that such authority exists.
Page 42, line 15, before the period insert ``AND FAMILIES IN
RURAL COMMUNITIES AND ON INDIAN RESERVATIONS''.
Page 42, line 21, after ``(42 U.S.C. 1437a(b)))'' insert ``,
families residing in rural communities, and families who reside
on Indian reservations,''.
Page 44, line 14, strike ``and''.
Page 44, line 20, strike the period and insert a semicolon.
Page 44, after line 20, insert the following new paragraphs:
(7) the impact of such a building code requirement on
rural communities with different building code
challenges than more urban environments; and
(8) the impact of such a building code requirement on
Indian reservations.
Page 45, after line 5, insert the following new sections:
SEC. 36. STUDY REGARDING CERTAIN HARBOR AREAS.
(a) Study.--The Administrator of the Federal Emergency
Management Agency shall carry out a study to identify the
impacts of the National Flood Insurance Program on harbor areas
that are working waterfronts, which shall--
(1) identify the models and assumptions used under
such program with respect to wave action in working
waterfronts and harbors;
(2) determine whether these are the same models and
assumptions used for open or unprotected coast lines;
(3) identify the assumptions used under such program
in modeling V-zones;
(4) identify the underlying basis for projected
impact of waves on working waterfronts,
(5) identify the frequency with which individual
working waterfronts receive revised flood-risk based on
the data they provide;
(6) determine the feasibility of basing flood maps
for such working waterfronts on actual historical flood
and damage data;
(7) identify the standards for construction and
design of working waterfront infrastructure that would
be needed to safely develop commercial buildings in the
V-zone;
(8) determine the economic impacts of the National
Flood Insurance Program on working waterfronts and
working waterfront dependant businesses;
(9) identify any new or alternative models that may
be used to more accurately reflect the risk of flooding
in working waterfronts and harbor environments;
(10) review the current coastal flood insurance study
guidelines and recommended methodologies;
(11) determine whether methodologies other than those
referred to in paragraph (10) should be applied with
respect to complicated harbors and open shorelines;
(12) review where 2-D ST Wave methodology should be
applied and where other methodologies should be
applied;
(13) review available data on wave attenuation
through pilings and piers and determine whether a
physical model for the attenuation of waves in that
environment can be undertaken to derive such data; and
(14) include any other information the Administrator
considers relevant to evaluating the flood risk and
insurance challenges facing working waterfronts.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Administrator shall submit to the
Congress a report setting forth the results and conclusions of
the study, including--
(1) a description of all of the matters identified
and determined pursuant to subsection (a); and
(2) an analysis of the feasibility of developing a
sheltered harbor flood zone for purposes of the
National Flood Insurance Program that specifically
recognizes the unique challenges faced by working
waterfronts and built-up harbors.
(c) Definition.--In this section, the term ``working
waterfront'' means real property (including support structures
over water and other facilities) that provides access to
coastal waters to persons engaged in commercial fishing,
recreational fishing business, boatbuilding, aquaculture, or
other water-dependent coastal-related business and is used for,
or that supports, commercial fishing, recreational fishing,
boatbuilding, aquaculture, or other water-dependent coastal-
related business.
SEC. 37. STUDY REGARDING HAZARD MODELING.
The Administrator of the Federal Emergency Management Agency
shall conduct a study to identify and assess the impacts,
including short-term and long-term impacts, of significant
flooding events and subsequent revisions of hazard modeling and
mapping since January 1, 2000, on the financial soundness of
the national flood insurance program. The Administrator may
enter into an agreement with Water Resources Research
Institutes to conduct the study under this section. The
Administrator shall provide for a final report regarding the
study to be submitted to the Congress not later than the
expiration of the 16-month period beginning on the date of the
enactment of this Act. The report may include recommendations
of the Administrator with respect to revising hazard modeling
and mapping.
Strike line 16 on page 46 and all that follows through page
47, line 7, and insert the following:
SEC. 40. INTERIM FINAL RULEMAKING.
The Administrator of the Federal Emergency Management Agency
shall issue an interim final rule to implement the amendments
made by this Act as soon as practicable, but not more than 18
months after the date of the enactment of this Act. The
Administrator of the Federal Emergency Management Agency shall
issue a final rule within one year after the effective date of
the interim final rule. In the event that the deadlines in this
section are not met, the Administrator shall report to the
Congress monthly on the status of the rulemakings and the
reasons for the failure to comply with the statutory deadlines.
----------
2. An Amendment To Be Offered by Representative Putnam of Florida, or
His Designee, Debatable for 10 Minutes
Page 35, strike line 5 and insert the following:
``(g) Reporting.--
``(1) Local governments.--Each local government
agency that''.
Page 35, after line 13, insert the following new paragraph:
``(2) Director.--The Director shall submit an annual
report, not later than December 31 of each year, to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on the effectiveness of
grants awarded under this section to local government
agencies, the activities conducted using such grant
amounts, and the effect of such activities on the
retention or acquisition of flood insurance
coverage.''.
----------
3. An Amendment To Be Offered by Representative Driehaus of Ohio, or
His Designee, Debatable for 10 Minutes
Page 46, after line 15, insert the following new section:
SEC. 30. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS OBTAINING
LETTERS OF MAP AMENDMENT.
If the owner of any property located in an area described in
section 102(i)(1) of the Flood Disaster Protection Act of 1973
(as added by the preceding provisions of this Act) obtains a
letter of map amendment during the 5-year period for such area
referred to in such section, the Administrator of the Federal
Emergency Management Agency shall reimburse such owner, or such
entity or jurisdiction acting on such owner's behalf, for any
costs incurred in obtaining such letter.
----------
4. An Amendment To Be Offered by Representative Flake of Arizona, or
His Designee, Debatable for 10 Minutes
Page 35, line 16, strike the quotation marks and the last
period.
Page 35, after line 16, insert the following new subsection:
``(i) Prohibition on Earmarks.--No amounts made available for
grants under this section may be used for a Congressional
earmark as defined in clause 9(e) of Rule XXI of the Rules of
the House of Representatives.''.
----------
5. An Amendment To Be Offered by Representative Taylor of Mississippi,
or His Designee, Debatable for 10 Minutes
Page 35, after line 16, insert the following new section:
SEC. __. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD.
Section 1345 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081) is amended by adding at the end the following new
subsections:
``(d) Requirements for Write-Your-Own Insurers Relating to
Windstorm and Flood.--
``(1) Written agreement.--The Director may not
utilize the facilities or services of any insurance
company or other insurer or entity to offer flood
insurance coverage under this title unless such
company, insurer, or entity enters into a written
agreement with the Director that provides as follows:
``(A) Prohibition on exclusion of wind damage
coverage.--The agreement shall prohibit the
company, insurer, or entity from including, in
any policy provided by the company or insurer
for homeowners' insurance coverage or coverage
for damage from windstorms, any provision that
excludes coverage for wind or other damage
solely because flooding also contributed to
damage to the insured property.
``(B) Fiduciary responsibility.--The
agreement shall provide that the company,
insurer, or entity--
``(i) has a fiduciary duty with
respect to the Federal taxpayers;
``(ii) in selling and servicing
policies for flood insurance coverage
under this title and adjusting claims
under such coverage, will act in the
best interests the national flood
insurance program rather than in the
interests of the company, insurer, or
entity; and
``(iii) will provide written guidance
to each insurance agent and claims
adjuster for the company, insurer, or
entity that sets forth the terms of the
agreement pursuant to subparagraph (A)
and this subparagraph.
``(2) Requirements for adjustment of claims.--The
Director shall, in utilizing the facilities of any
insurance company or other insurer or entity pursuant
to this section to offer flood insurance coverage under
this title, the Director shall provide as follows:
``(A) Approval of adjustment procedures.--No
such insurance company, other insurer, or
entity may offer flood insurance coverage under
this title unless the Director has approved, as
meeting standards as the Director shall
establish, the procedures, protocols,
guidelines, standards, or instructions used by
the company, insurer, or entity in adjusting
claims for identifying, apportioning,
quantifying, and differentiating damage caused
by flooding and damage caused by wind.
``(B) Treatment of wind and flood claims from
same event.--The Director shall require any
insurance company or other insurer or entity
that, pursuant to this section, provides flood
insurance coverage under this title for a
property and that also provides insurance
coverage for the same property for losses
resulting from wind, when claims are made both
for damage resulting from flood and for damage
resulting from wind involved in a single event,
to comply with the following requirements:
``(i) Contemporaneous adjustment.--
The claims for damage to the property
under the coverage under this title for
losses from flood and under the
coverage for losses from wind shall be
adjusted contemporaneously.
``(ii) Inclusions in flood claim
file.--The insurance company, other
insurer, or entity shall obtain and
include in the file maintained with
respect to any claim under the flood
insurance coverage under this title,
and make available to the Director upon
request, the following information
relating to the wind claim:
``(I) The amount paid on the
claim and the date of such
payment.
``(II) An explanation of
rationale used by the company,
insurer, or entity in
determining which damage
resulted from flood and which
damage resulted from wind.
``(III) Copies of any
photographs, witness
statements, and other evidence
related to the wind or flood
claim.
``(iii) Review.--The Director shall
review the information obtained
pursuant to clause (ii) to ensure
that--
``(I) claims are paid under
coverage under this title only
for losses resulting from
flood; and
``(II) in the adjusting the
claims, the insurance company
or other insurer or entity
complied with procedures,
protocols, guidelines,
standards, or instructions for
identifying, apportioning,
quantifying, and
differentiating damage caused
by flooding and damage caused
by wind that have been approved
by the Director as meeting the
standards established by the
Director pursuant to
subparagraph (A).
``(iv) Payment under flood coverage
when cause of loss cannot be
determined.--If the insurance company
or other insurer or entity determines
that the loss claimed was caused by
flooding or wind, but that the evidence
is insufficient to differentiate the
losses caused by flooding from those
caused by wind, the company, insurer,
or entity shall pay the claim under the
flood insurance coverage for the
property as if the entire loss were
caused by flooding, and shall submit
all information regarding the claim to
the Director.
``(v) FEMA determination and
recovery.--In the case of any claim
paid pursuant to clause (iv), the
Director shall review the information
related to the claim and determine, in
accordance with procedures for making
such a determination regarding such
claims as the Director shall establish,
the losses caused by wind. The Director
shall seek to recover any portion of
the losses that the Director determines
were caused by wind from the insurance
company or other insurer or entity
that, pursuant to clause (iv), paid
such losses as flood losses''.
----------
6. An Amendment To Be Offered by Representative Candice Miller of
Michigan, or Her Designee, Debatable for 10 Minutes
At the appropriate place in the bill, insert the following
new section:
SEC. __. STUDY ON PRIVATE INSURANCE MARKET, COMMUNITY PARTICIPATION IN
THE NATIONAL FLOOD INSURANCE PROGRAM, AND THE
REGIONALIZATION OF THE NATIONAL FLOOD INSURANCE
PROGRAM.
(a) Study.--The Comptroller General shall conduct a study
on--
(1) ways that the private insurance market can
contribute to insuring against flood damage;
(2) the impact on the National Flood Insurance
Program if communities decide not to participate in the
Program; and
(3) the feasibility of regionalizing the National
Flood Insurance Program and ensuring that there is no
cross-subsidization between regions under such Program.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report containing the results of the study conducted
under subsection (a).
----------
7. An Amendment To Be Offered by Representative Boswell of Iowa, or His
Designee, Debatable for 10 Minutes
Page 14, line 11, insert ``appropriate evacuation routes
under the evacuation plan referred to in subparagraph (A),''
after ``risks,''.
Page 32, line 15, strike ``properties; and'' and insert
``properties;''.
Page 32, line 17, strike the period and insert ``; and''.
Page 32, after line 17 insert the following:
``(6) notify such owners of where to obtain
information regarding how to obtain such coverage,
including a telephone number, mailing address, and
Internet site of the Director where such information is
available.
----------
8. An Amendment To Be Offered by Representative Hill of Indiana, or His
Designee, Debatable for 10 Minutes
Page 39, line 6, strike ``and''.
Page 39, line 10, strike the period and insert ``; and''.
Page 39, after line 10, insert the following:
``(E) identify ways to assist communities in
efforts to fund the accreditation of flood
protection systems.
----------
9. An Amendment To Be Offered by Representative Loebsack of Iowa, or
His Designee, Debatable for 10 Minutes
Page 41, after line 8, insert the following new section:
SEC. 23. APPEALS.
(a) Television and Radio Announcement.--Section 1363 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is
amended--
(1) in subsection (a), by inserting after
``determinations'' by inserting the following: ``by
notifying a local television and radio station,''; and
(2) in the first sentence of subsection (b), by
inserting before the period at the end the following:
``and shall notify a local television and radio station
at least once during the same 10-day period''.
(b) Applicability.--The amendments made by subsection (a)
shall apply with respect to any flood elevation determination
for any area in a community that has not, as of the date of the
enactment of this Act, been issued a Letter of Final
Determination for such determination under the flood insurance
map modernization process.
----------
10. An Amendment To Be Offered by Representative McMahon of New York,
or His Designee, Debatable for 10 Minutes
Page 32, line 15, strike ``and''.
Page 32, line 17, strike the period and insert ``; and''.
Page 32, after line 17, insert the following:
``(6) educate local real estate agents in communities
participating in the national flood insurance program
regarding the program and the availability of coverage
under the program for owners and renters of properties
in such communities, and establish coordination and
liaisons with such real estate agents to facilitate
purchase of coverage under this Act and increase
awareness of flood risk reduction.''.
----------
11. An Amendment To Be Offered by Representative Scott Murphy of New
York, or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 31. ETHICS COMPLIANCE.
All funds authorized under this Act or any amendment made by
this Act shall be expended in a manner that is consistent with
the manual on Standards of Ethical Conduct for Employees of the
Executive Branch.