[House Report 110-351]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-351
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3121) TO RESTORE THE
FINANCIAL SOLVENCY OF THE NATIONAL FLOOD INSURANCE PROGRAM AND TO
PROVIDE FOR SUCH PROGRAM TO MAKE AVAILABLE MULTIPERIL COVERAGE FOR
DAMAGE RESULTING FROM WINDSTORMS AND FLOODS, AND FOR OTHER PURPOSES
_______
September 26, 2007.--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. 683]
The Committee on Rules, having had under consideration
House Resolution 683, by a record vote of 8 to 3, 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. 3121, the
Flood Insurance Reform and Modernization Act of 2007, under a
structured rule. The rule provides one hour of general debate
equally divided and controlled by the chairman and ranking
minority member of the Committee on Financial Services. The
rule waives all points of order against consideration of the
bill except clauses 9 and 10 of rule XXI. The rule provides
that the amendment in the nature of a substitute recommended by
the Committee on Financial Services now printed in the bill,
modified by the amendment printed in Part A of this report,
shall be considered as adopted. The bill as amended shall be
considered as an original bill for the purpose of amendment and
shall be considered as read. The rule waives all points of
order against provisions in the bill as amended.
The rule makes in order only those further amendments
printed in Part B of this report. The further 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 a division
of the question in the House or in the Committee of the Whole.
All points of order against the further amendments except for
clauses 9 and 10 of rule XXI are waived. The rule provides one
motion to recommit with or without instructions. The rule
provides that the Chair may postpone further consideration of
the bill to a time designated by the Speaker.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the bill (except for clauses 9 and 10 of rule
XXI) and against the bill, as amended, the Committee is not
aware of any points of order against consideration of the bill
or against the bill as amended. The waivers of all points of
order are prophylactic in nature.
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. 319
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Mr. Dreier.
Summary of motion: To grant an open rule.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
Rules Committee record vote No. 320
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #11, which
would strike Section 7 of the bill which expands the NFIP to
include wind coverage, and would replace Section 7 with a blue-
ribbon, bipartisan commission, to study and report on
legislative and regulatory changes that could improve the
availability and competitiveness of disaster insurance.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
Rules Committee record vote No. 321
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Garrett (NJ), #13, which
would, after the date of enactment of the bill, require any
purchaser of a pre-firm primary residential home that costs
$600,000 or higher to pay phased-in actuarial flood insurance
prices using the same phase-in structure that non-residential
and non-primary homes are currently subject to in the
legislation.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
Rules Committee record vote No. 322
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #15, which
would terminate all subsidized NFIP rates beginning 5 years
after enactment.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
Rules Committee record vote No. 323
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #12, which
would prohibit the offering of multi-peril coverage (like wind
coverage) under NFIP until such time as the NFIP has fully
repaid all of the money it borrowed from the Treasury for the
2005 hurricane season, including interest.
Results: Defeated 3-8.
Vote by Members: Hastings (FL)--Nay; Matsui--Nay; Cardoza--
Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay;
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Slaughter--
Nay.
Rules Committee record vote No. 324
Date: September 26, 2007.
Measure: H.R. 3121.
Motion by: Rep. Hastings (FL).
Summary of motion: To report the rule.
Results: Adopted 8-3.
Vote by Members: Hastings (FL)--Yea; Matsui--Yea; Cardoza--
Yea; Welch--Yea; Castor--Yea; Arcuri--Yea; Sutton--Yea;
Dreier--Nay; Diaz-Balart--Nay; Hastings (WA)--Nay; Slaughter--
Yea.
SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED
The amendment strikes the increase in borrowing authority
available to the National Flood Insurance Program (``NFIP'') in
order to make the bill compliant with PAYGO.
SUMMARY OF AMENDMENTS MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Frank (MA): Manager's Amendment. The manager's amendment
does the following: (1) requires that homes insured by wind/
water policies comply with existing model building codes from
the International Code Council pursuant to request from the
National Association of Home Builders; (2) requires that
specific technologies be used for mapping floodplains (such as
geospatial technologies); (3) adds a professional mapping
association to the Mapping Advisory Council; (4) prohibits FEMA
from enforcing a penalties assessed against individual condo
owners where the condo complex is underinsured regarding flood
coverage; (5) directs FEMA to develop a plan to verify that the
recipients of Homeowner Assistance Grants in Mississippi and
Road Home Grants in Louisiana, funded by HUD Community
Development Block Grants, maintain flood insurance on their
properties as required as a condition of the grants; and (6)
codifies recommendations in a recently released GAO report (GAO
07-1078) with respect to the National Flood Insurance Program's
payments to insurance companies for their administrative costs
without requiring the companies to report their costs or to
comply with the existing audit requirements. (10 minutes)
2. Cardoza (CA)/Ross (AR)/Reyes (TX): This amendment says
that people forced to purchase flood insurance as a result of
the new map who have lived in an area where the levees were
previously certified, and have now been decertified, will
receive a grace period of 5 years in which they will be
entitled to a 50% reduction in their flood insurance premium
while the levees are being recertified. (10 minutes)
3. Castor (FL): This amendment commissions a study by the
GAO to examine the effect of the new multiperil policy on state
insurance programs. (10 minutes)
4. Castor (FL): This amendment clarifies some of the
priorities for wind risk criteria generation. (10 minutes)
5. Blumenauer (OR)/Welch (VT)/Gilchrest (MD): The amendment
would require FEMA, when updating and maintaining flood maps,
to take into consideration the impacts of global warming, the
potential future impacts of global climate change-related
weather events, and use the best available climate science in
assessing flood and storm risks. (10 minutes)
6. Murphy, Patrick (PA)/Arcuri (NY): This amendment would
create the position of National Flood Insurance Advocate in
FEMA which would: (1) transmit a comprehensive report to
Congress about the major problems facing the Flood Insurance
Program; and (2) report to Congress about the feasibility and
effectiveness of establishing an Office of the Flood Insurance
Advocate, headed by the National Flood Insurance Advocate, to
assist insureds in resolving problems with FEMA. (10 minutes)
7. Taylor, Gene (MS): This amendment allows multiple peril
and flood insurance coverage of apartment buildings up to the
total of the number of dwelling units times the maximum
coverage limit per residential unit. (10 minutes)
8. Taylor, Gene (MS): The amendment prohibits a company
that sells and services flood insurance policies from including
language in its own windstorm policies that would exclude
coverage of wind damage solely because flooding also
contributed to the damage. The amendment also requires the
contract between an insurance company and NFIP to state that
the company has a fiduciary responsibility to federal taxpayers
and will act in the best interests of NFIP. (10 minutes)
9. Costello (IL): The amendment provides that no changes in
flood insurance status can go into effect until the remapping
process is completed for the entire district of the Corps of
Engineers affected by that map. (10 minutes)
10. Green, Gene (TX): This amendment provides a five year
phase-in of flood insurance premiums for low-income homeowners
or renters whose primary residence is placed within a flood
plain through an updating of the flood insurance program maps
if the value of the home does not exceed 75% of the state
median home value. (10 minutes)
11. Berry (AR)/Ross (AR)/Hare (IL)/Emerson (MO)/Hulshof
(MO)/Costello (IL): The amendment authorizes the Director of
FEMA to include a note on flood insurance rate maps identifying
100-year and 500-year certified levees and encouraging property
owners to evaluate their risk of flooding. The amendment also
clarifies that the note shall not be considered a legal
requirement of participation in the national flood insurance
program. (10 minutes)
12. Walz (MN): This amendment adds to the flood map
modernization provisions of H.R. 3121 a requirement that FEMA
map areas in the 100-year floodplain that would flood if not
for a ``levee, dam, or other man-made structure.'' (10 minutes)
13. Stark (CA)/Burton (IN): This amendment requires written
notification by first class mail to each property owner
affected by a proposed change in flood elevations, prior to the
90-day appeal period. Notification would include an explanation
of the appeal process and contact information for responsible
officials. (10 minutes)
PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED
In the heading for section 12, strike ``INCREASE IN'' and
insert ``REPORT REGARDING''.
Strike subsection (a) of section 12 (relating to increase in
borrowing authority).
In subsection (b) of section 12, strike ``, including any''
and all that follows and insert the following: ``that, as of
the expiration of such period, have been borrowed under the
authority of section 1309(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4016(a)) and not yet repaid as of such
date.''.
Strike the subsection designation and heading for subsection
(b) of section 12.
PART B--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Frank of Massachusetts
or His Designee, Debatable for 10 Minutes
In the matter proposed to be inserted by section 7(a)(2) of
the bill, amend paragraph (2) of subsection (c) to read as
follows:
``(2) Community participation requirement.--
Multiperil coverage pursuant to this subsection may not
be provided in any area (or subdivision thereof) unless
an appropriate public body shall have adopted adequate
mitigation measures (with effective enforcement
provisions) which the Director finds are consistent
with the criteria for construction described in the
International Code Council building codes relating to
wind mitigation.''.
In the matter proposed to be inserted by section 7(d) of the
bill, in paragraph (1) of subsection (d) strike ``windstorm-
prone areas as to land management and use, windstorm zoning,
and windstorm damage prevention'' and inserting ``wind events
as to wind hazard prevention''.
In the matter proposed to be inserted by the amendment made
by section 22(a) of the bill, in subsection (k), redesignate
paragraphs (4) through (8) as paragraphs (5) through (9),
respectively.
In the matter proposed to be inserted by the amendment made
by section 22(a) of the bill, after subsection (k)(3) insert
the following new paragraph:
``(4) Mapping elements.--Each map updated under this
section shall meet the following requirements:
``(A) Ground elevation data.--The maps shall
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
the existing guidelines and specifications of
the Federal Emergency Management Agency.
``(B) Data on a watershed basis.--The maps
shall 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.
``(C) Other data.--The maps shall include any
other relevant information as may be
recommended by the Technical Mapping Advisory
Council reestablished by section 22(b) of the
Flood Insurance Reform and Modernization Act of
2007.''.
In section 22(b)(2)(A), strike ``14'' and insert ``15''.
In section 22(b)(2)(B), strike ``(N), and (O)'' and insert
``(O), and (P)''.
In the matter proposed to be inserted by the amendment made
by section 22(b)(2)(E) of the bill, after subparagraph (M)
insert the following new subparagraph:
``(N) a member of a professional mapping
association or organization;''.
At the end of the bill add the following new sections:
SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY ASSESSED ON CONDOMINIUM
ASSOCIATIONS.
Notwithstanding any other provision of law, the Director of
the Federal Emergency Management Agency shall not apply or
enforce any penalty relating to the national flood insurance
program assessed, during 2005 or thereafter, on condominium
associations that are underinsured under such program.
SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF WRITE-YOUR-OWN INSURERS;
INDEPENDENT AUDITS.
Section 1348 of the National Flood Insurance Act of 1968 (42
U.S.C. 4084) is amended by adding at the end the following new
subsections:
``(c) Any insurance company or other private organization
executing any contract, agreement, or other appropriate
arrangement with the Director under this part shall--
``(1) annually submit to the Director a record of all
administrative and operating costs of the program
undertaken; and
``(2) biennially submit to the Director an
independent audit of the program undertaken that is
conducted by a certified public accountant to ensure
that payments made are proper and in accordance with
this Act.
``(d) The Director shall review the records and audits
submitted under paragraphs (1) and (2) of subsection (c) to
determine if such payments are reasonable and if the system by
which the Director makes payments to an insurance company or
other private organization under this part should be revised.
``SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON MISSISSIPPI
AND LOUISIANA PROPERTIES RECEIVING EMERGENCY
SUPPLEMENTAL FUNDS.
``The Director of the Federal Emergency Management Agency
shall develop and implement a plan to verify that persons
receiving funds under the Homeowner Grant Assistance Program of
the State of Mississippi or the Road Home Program of the State
of Louisiana from amounts allocated to the State of Mississippi
or the State of Louisiana, respectively, from the Community
development fund under the Emergency Supplemental
Appropriations Act to Address Hurricanes in the Gulf of Mexico
and Pandemic Influenza, 2006 (Public Law 109-148) are
maintaining flood insurance on the property for which such
persons receive such funds as required by each such Program.''.
----------
2. An Amendment To Be Offered by Representative Cardoza of California,
or His Designee, Debatable for 10 Minutes
At the end of section 22 of the bill, add the following new
subsection:
(e) 5-Year Discount of Flood Insurance Rates for Formerly
Protected Areas.--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--
(1) in subsection (c), by inserting ``and subsection
(g)'' before the first comma; and
(2) by adding at the end the following new
subsection:
``(g) 5-Year Discount of Flood Insurance Rates for Formerly
Protected Areas.--Notwithstanding any other provision of law
relating to chargeable risk premium rates for flood insurance
coverage under this title, in the case of any area that
previously was not designated as an area having special flood
hazards because the area was protected by a flood protection
system and that, pursuant to remapping under section 1360(k),
becomes designated as such an area as a result of the
decertification of such flood protection system, during the 5-
year period that begins upon the initial such designation of
the area, the chargeable premium rate for flood insurance under
this title with respect to any property that is located within
such area shall be equal to 50 percent of the chargeable risk
premium rate otherwise applicable under this title to the
property.''.
----------
3. An Amendment To Be Offered by Representative Castor of Florida, or
Her Designee, Debatable for 10 Minutes
At the end of the bill add the following new section:
SEC. __. GAO STUDY OF FACTORS AFFECTING ENROLLMENT IN MULTIPERIL
INSURANCE PROGRAM.
(a) In General.--The Comptroller General of the United States
shall conduct a study to identify and analyze factors affecting
enrollment in the multiperil insurance program. Such study
shall include a study of the effects of the multiperil
insurance program on enrollment and pricing of State residual
property and casualty markets or plans and State catastrophe
plans.
(b) Report.--Not later than 270 days after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report containing the conclusions of the study
conducted under subsection (a).
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4. An Amendment To Be Offered by Representative Castor of Florida, or
Her Designee, Debatable for 10 Minutes
In the matter proposed to be inserted by section 7(d) of the
bill, in paragraph (2) of subsection (d) strike ``windstorms''
and insert ``windstorms, discourage density and intensity or
range of use increases in locations subject to windstorm
damage, and enforce restrictions on the alteration of wetlands
coastal dunes and vegetation and other natural features that
are known to prevent or reduce such damage''.
----------
5. An Amendment To Be Offered by Representative Blumenauer of Oregon,
or His Designee, Debatable for 10 Minutes
Subsection (k)(2) of section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101), as added by section
22(a) of the bill, is amended by adding at the end the
following new subparagraph:
``(C) Effects of global warming.--In updating
and maintaining maps under this section, the
Director shall--
``(i) take into consideration and
account for the impacts of global
climate change on flood, storm, and
drought risks in the United States;
``(ii) take into consideration and
account for the potential future impact
of global climate change-related
weather events, such as increased
hurricane activity, intensity, storm
surge, sea level rise, and associated
flooding; and
``(iii) use the best available
climate science in assessing flood and
storm risks to determine flood risks
and develop such maps.''.
----------
6. An Amendment To Be Offered by Representative Patrick Murphy of
Pennsylvania, or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 30. NATIONAL FLOOD INSURANCE ADVOCATE; REPORTS.
Chapter II of the National Flood Insurance Act of 1968 is
amended by inserting after section 1330 (42 U.S.C. 4041) the
following new section:
``SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE.
``(a) Establishment of Position.--
``(1) In general.--There shall be in the Federal
Emergency Management Agency a National Flood Insurance
Advocate. The National Flood Insurance Advocate shall
report directly to the Director and shall, to the
extent amounts are provided pursuant to subsection (c),
be compensated at the same rate as the highest rate of
basic pay established for the Senior Executive Service
under section 5382 of title 5, United States Code, or,
if the Director so determines, at a rate fixed under
section 9503 of such title.
``(2) Appointment.--The National Flood Insurance
Advocate shall be appointed by the Director and the
flood insurance advisory committee established pursuant
to section 1318 (42 U.S.C. 4025) and without regard to
the provisions of title 5, United States Code, relating
to appointments in the competitive service or the
Senior Executive Service.
``(3) Qualifications.--An individual appointed under
paragraph (2) shall have--
``(A) a background in customer service as
well as insurance; and
``(B) experience in representing individual
insureds.
``(4) Restriction on employment.--An individual may
be appointed as the National Flood Insurance Advocate
only if such individual was not an officer or employee
of the Federal Emergency Management Agency with duties
relating to the national flood insurance program during
the 2-year period ending with such appointment and such
individual agrees not to accept any employment with the
Federal Emergency Management Agency for at least 5
years after ceasing to be the National Flood Insurance
Advocate. Service as an employee of the National Flood
Insurance Advocate shall not be taken into account in
applying this paragraph.
``(5) Staff.--To the extent amounts are provided
pursuant to subsection (c), the National Flood
Insurance Advocate may employ such personnel as may be
necessary to carry out the duties of the Advocate.
``(b) Duties.--The duties of the National Flood Insurance
Advocate shall be to conduct studies with respect to, and
submit, the following reports:
``(1) Report on problems of insureds under national
flood insurance program.--Not later than the expiration
of the 12-month period beginning on the date of the
enactment of the Flood Insurance Reform and
Modernization Act of 2007, the National Flood Insurance
Advocate shall submit a report to the Congress
regarding the national flood insurance program, which
shall--
``(A) identify areas in which insureds under
such program have problems in dealings with the
Federal Emergency Management Agency relating to
such program, and shall contain a summary of at
least 20 of the most serious problems
encountered by such insureds, including a
description of the nature of such problems;
``(B) identify areas of the law relating to
the flood insurance that impose significant
compliance burdens on such insureds or the
Federal Emergency Management Agency, including
specific recommendations for remedying such
problems;
``(C) identify the 10 most litigated issues
for each category of such insureds, including
recommendations for mitigating such disputes;
``(D) identify the initiatives of the Agency
to improve services for insureds under the
national flood insurance program and actions
taken by the Agency with respect to such
program;
``(E) contain recommendations for such
administrative and legislative action as may be
appropriate to mitigate or resolve problems
encountered by such insureds; and
``(F) include such other information as the
National Flood Insurance Advocate considers
appropriate.
``(2) Report on establishment of an office of the
flood insurance advocate.--Not later than the
expiration of the 6-month period beginning on the date
of the initial appointment of a National Flood
Insurance Advocate under this section, the Advocate
shall submit a report to the Congress regarding the
feasibility and effectiveness of establishing an Office
of the Flood Insurance Advocate, headed by the National
Flood Insurance Advocate, to assist insureds under the
national flood insurance program in resolving problems
with the Federal Emergency Management Agency relating
to such program. Such report shall examine and analyze,
and include recommendations regarding--
``(A) an appropriate structure in which to
establish such an Office, and appropriate
levels of personnel for such Office;
``(B) other appropriate functions for such an
Office, which may include--
``(i) identifying areas in which such
insureds have problems in dealing with
the Agency relating to such program;
``(ii) proposing changes in the
administrative practices of the Agency
to resolve or mitigate problems
encountered by such insureds; and
``(iii) identifying potential
legislative changes which may be
appropriate to resolve or mitigate such
problems;
``(C) appropriate procedures for formal
response by the Director to recommendations
submitted to the Director by the National Flood
Insurance Advocate;
``(D) the feasibility and effectiveness of
authorizing the National Flood Insurance
Advocate to issue flood insurance assistance
orders in cases in which the Advocate
determines that a qualified insured is
suffering or about to suffer a significant
hardship as a result of the manner in which the
flood insurance laws are being administered or
meets such other requirements may be
appropriate, including examining and
analyzing--
``(i) appropriate limitations on the
scope and effect of such orders;
``(ii) an appropriate standard for
determining such a significant
hardship;
``(iii) appropriate terms of flood
insurance assistance orders; and
``(iv) appropriate procedures for
modifying or rescinding such orders;
``(E) the feasibility and effectiveness of
establishing offices of flood insurance
advocates who report to the National Flood
Insurance Advocate, including examining and
analyzing--
``(i) the appropriate coverage and
geographic allocation of such offices;
``(ii) appropriate procedures and
criteria for referral of inquiries by
insureds under such program to such
offices;
``(iii) allowing such advocates to
consult with appropriate supervisory
personnel of the Agency regarding the
daily operation of the offices; and
``(iv) providing authority for such
advocates not disclose to the Director
contact with, or information provided
by, such an insured;
``(F) appropriate methods for developing
career paths for flood insurance advocates
referred to in subparagraph (E) who may choose
to make a career in the Office of the Flood
Insurance Advocate; and
``(G) such other issues regarding the
establishment of an Office of the Flood
Insurance Advocate as the National Flood
Insurance Advocate considers appropriate.
``(3) Direct submission of reports.--Each report
required under paragraph (2) shall be provided directly
to the Congress by the National Flood Insurance
Advocate without any prior review or comment from the
Director, the Secretary of Homeland Security, or any
other officer or employee of the Federal Emergency
Management Agency or the Department of Homeland
Security, or the Office of Management and Budget.
``(c) Authorization of Appropriations.--There are authorized
to be appropriated for fiscal year 2008 and each fiscal year
thereafter such sums as may be necessary to carry out this
section.''.
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7. An Amendment To Be Offered by Representative Taylor of Mississippi,
or His Designee, Debatable for 10 Minutes
In the matter proposed to be inserted by the amendment made
by section 7(a)(2) of the bill, in subsection (c)(7)(A), after
``residential properties'' insert the following: ``, which
shall include structures containing multiple dwelling units
that are made available for occupancy by rental
(notwithstanding any treatment or classification of such
properties for purposes of section 1306(b))''.
In the matter proposed to be inserted by the amendment made
by section 7(a)(2) of the bill, in subsection (c)(7)(A)(ii),
before the semicolon insert the following: ``, which limit, in
the case of such a structure containing multiple dwelling units
that are made available for occupancy by rental, shall be
applied so as to enable any insured or applicant for insurance
to receive coverage for the structure up to a total amount that
is equal to the product of the total number of such rental
dwelling units in such property and the maximum coverage limit
per dwelling unit specified in this clause''.
In section 8 of the bill, strike paragraph (3) and insert
the following:
(2) in paragraph (4)--
(A) by striking ``$500,000'' each place such
term appears and inserting ``$670,000''; and
(B) by inserting before ``; and'' the
following: ``; except that, in the case of any
nonresidential property that is a structure
containing more than one dwelling unit that is
made available for occupancy by rental
(notwithstanding the provisions applicable to
the determination of the risk premium rate for
such property), additional flood insurance in
excess of such limits shall be made available
to every insured upon renewal and every
applicant for insurance so as to enable any
such insured or applicant to receive coverage
up to a total amount that is equal to the
product of the total number of such rental
dwelling units in such property and the maximum
coverage limit per dwelling unit specified in
paragraph (2); except that in the case of any
such multi-unit, nonresidential rental property
that is a pre-FIRM structure (as such term is
defined in section 578(b) of the National Flood
Insurance Reform Act of 1994 (42 U.S.C. 4014
note)), the risk premium rate for the first
$500,000 of coverage shall be determined in
accordance with section 1307(a)(2) and the risk
premium rate for any coverage in excess of such
amount shall be determined in accordance with
section 1307(a)(1)''.
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8. An Amendment To Be Offered by Representative Taylor of Mississippi,
or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 30. 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
subsection:
``(d) Requirements for Write-Your-Own Insurers Relating to
Windstorm and Flood.--The Director may not utilize the
facilities or services of any insurance company or other
insurer to offer flood insurance coverage under this title
unless such company or insurer enters into a written agreement
with the Director that provides as follows:
``(1) Prohibition on exclusion of wind damage
coverage.--The agreement shall prohibit the company or
insurer 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.
``(2) Fiduciary responsibility.--The agreement shall
provide that the company or insurer--
``(A) has a fiduciary duty with respect to
the Federal taxpayers;
``(B) 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 or insurer; and
``(C) will provide written guidance to each
insurance agent and claims adjuster for the
company or insurer setting forth the terms of
the agreement pursuant to subparagraphs (A) and
(B).''.
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9. An Amendment To Be Offered by Representative Costello of Illinois,
or His Designee, Debatable for 10 Minutes
Subsection (k) of section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101), as added by section
22(a) of the bill, is amended by redesignating paragraph (8) as
paragraph (9).
Subsection (k) of section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101), as added by section
22(a) of the bill, is amended by inserting after paragraph (7)
the following new paragraph:
``(8) Use of maps for rates.--The Director shall not
adjust the chargeable premium rate for flood insurance
under this title based on an updated national flood
insurance program rate map or require the purchase of
flood insurance for a property not subject to such a
requirement of purchase prior to the updating of such
national flood insurance program rate map until an
updated national flood insurance program rate map is
completed for the entire district of the Corps of
Engineers affected by the map, as determined by the
district engineer for such district.''.
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10. An Amendment To Be Offered by Representative Gene Green of Texas,
or His Designee, Debatable for 10 Minutes
At the end of section 22 of the bill, add the following new
subsection:
(e) Phase-in of Flood Insurance Premiums for Low-Cost
Properties.--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--
(1) in subsection (c), by inserting ``and subsection
(g)'' before the first comma; and
(2) by adding at the end the following new
subsection:
``(g) 5-Year Phase-in of Premiums for Newly Covered Low-Cost
Properties.--
``(1) In general.--In the case of any area not
previously designated as an area having special flood
hazards that becomes designated as such an area as a
result of remapping pursuant to section 1360(k), during
the 5-year period that begins upon the initial such
designation of the area, the chargeable premium rate
for flood insurance under this title with respect to
any low-cost property that is located within such area
shall be--
``(A) for the first year of such 5-year
period, 20 percent of the chargeable risk
premium rate otherwise applicable under this
title to the property;
``(B) for the second year of such 5-year
period, 40 percent of the chargeable risk
premium rate otherwise applicable under this
title to the property;
``(C) for the third year of such 5-year
period, 60 percent of the chargeable risk
premium rate otherwise applicable under this
title to the property;
``(D) for the fourth year of such 5-year
period, 80 percent of the chargeable risk
premium rate otherwise applicable under this
title to the property; and
``(E) for the fifth year of such 5-year
period, 100 percent of the chargeable risk
premium rate otherwise applicable under this
title to the property.
``(2) Low-cost property.--For purposes of this
subsection, the term `low-cost property' means a
single-family dwelling, or a dwelling unit in a
residential structure containing more than one dwelling
unit, that--
``(A) is the principal residence of the owner
or renter occupying the dwelling or unit; and
``(B) has a value, at the time of the initial
designation of the area having special flood
hazards, that does not exceed 75 percent of
median home value for the State in which the
property is located.''.
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11. An Amendment To Be Offered by Representative Berry of Arkansas, or
His Designee, Debatable for 10 Minutes
At the end of the bill add the following new section:
SEC. __. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED
AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED
FLOOD CONTROL STRUCTURE.
The National Flood Insurance Act of 1968 is amended by
inserting after section 1361A (42 U.S.C. 4102a) the following
new section:
``SEC. 1362. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS PROTECTED
AGAINST 100-YEAR AND 500-YEAR FLOODS BY CERTIFIED
FLOOD CONTROL STRUCTURE.
``(a) 100-Year Floodplain.--The Director may publish, through
the publication of a national flood insurance program rate map,
a note to designate areas protected against at least the 100-
year flood by a certified flood control structure which shall
read as follows: `NOTE: This area is shown as being protected
from at least the 1-percent-annual-chance flood hazard by
levee, dike, or other structure. Overtopping or failure of any
flood control structure is possible. Property owners are
encouraged to evaluate their flood risk, based on full and
accurate information, and to consider flood insurance coverage
as appropriate.'.
``(b) 500-Year Floodplain.--The Director may publish, through
the issuance of a national flood insurance program rate map, a
note to designate areas protected against at least the 500-year
flood by a certified flood control structure which shall read
as follows: `NOTE: This area is shown as being protected from
at least the 0.2-percent-annual-chance flood hazard by levee,
dike, or other structure. Overtopping or failure of any flood
control structure is possible. Property owners are encouraged
to evaluate their flood risk, based on full and accurate
information, and to consider flood insurance coverage as
appropriate.'.
``(c) Effect of Notes.--The publication of a note under
subsection (a) or (b) shall not be considered a requirement of
participation in the national flood insurance program.''.
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12. An Amendment To Be Offered by Representative Walz of Minnesota, or
His Designee, Debatable for 10 Minutes
Subsection (k)(2)(A)(ii) of section 1360 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by
section 22(a) of the bill, is amended by striking ``and''.
Subsection (k)(2)(A)(iii) of section 1360 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by
section 22(a) of the bill, is amended by striking the final
period and inserting ``; and''.
Subsection (k)(2)(A) of section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101), as added by section
22(a) of the bill, is amended by adding at the end the
following new clause:
``(iv) the 100-year floodplain,
including any area that would be in the
100-year floodplain if not protected by
a levee, dam, or other man-made
structure.''.
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13. An Amendment To Be Offered by Representative Stark of California,
or His Designee, Debatable for 10 Minutes
In the matter proposed to be inserted by the amendment made
by section 23 of the bill, in section 1363(a)(2), strike
``and'' at the end.
In the matter proposed to be inserted by the amendment made
by section 23 of the bill, in section 1363(a)(3), strike the
period at the end and insert ``; and''.
In the matter proposed to be inserted by the amendment made
by section 23 of the bill, after paragraph (3) of section
1363(a) insert the following new paragraph:
``(4) by providing written notification, by first
class mail, to each owner of real property affected by
the proposed elevations of--
``(A) the status of such property, both prior
to and after the effective date of the proposed
determination, with respect to flood zone and
flood insurance requirements under this Act and
the Flood Disaster Protection Act of 1973;
``(B) the process under this section to
appeal a flood elevation determination; and
``(C) the mailing address and phone number of
a person the owner may contact for more
information or to initiate an appeal.''.