[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2238 Enrolled Bill (ENR)]
S.2238
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To amend the National Flood Insurance Act of 1968 to reduce losses to
properties for which repetitive flood insurance claim payments have been
made.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

8e4793ec62477350f78535d795e29da8143777976d955586cd956afca14a30c6

(a) Short Title.--This Act may be cited as the ``Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

77013d1822e92286d40160e955a67e10c1aeb0d15a34dc56d803c282e174734c

5e355686724b2276d851444a8419dbf800efd4d63c318b5be93d7ed0c15d5a4c

TITLE I

-AMENDMENTS TO FLOOD INSURANCE ACT OF 1968

7a3c09495a46ddd7d501eb425aff423ba00eac589eb07b84076c696fb7345445

fc6fe368113dbfe81f519792c506da87b3a9352c323324266092be7534bdd61b

The Congress finds that--
(1) the national flood insurance program--
(A) identifies the flood risk;
(B) provides flood risk information to the public;
(C) encourages State and local governments to make
appropriate land use adjustments to constrict the development
of land which is exposed to flood damage and minimize damage
caused by flood losses; and
(D) makes flood insurance available on a nationwide basis
that would otherwise not be available, to accelerate recovery
from floods, mitigate future losses, save lives, and reduce the
personal and national costs of flood disasters;
(2) the national flood insurance program insures approximately
4,400,000 policyholders;
(3) approximately 48,000 properties currently insured under the
program have experienced, within a 10-year period, 2 or more flood
losses where each such loss exceeds the amount $1,000;
(4) approximately 10,000 of these repetitive-loss properties
have experienced either 2 or 3 losses that cumulatively exceed
building value or 4 or more losses, each exceeding $1,000;
(5) repetitive-loss properties constitute a significant drain
on the resources of the national flood insurance program, costing
about $200,000,000 annually;
(6) repetitive-loss properties comprise approximately 1 percent
of currently insured properties but are expected to account for 25
to 30 percent of claims losses;
(7) the vast majority of repetitive-loss properties were built
before local community implementation of floodplain management
standards under the program and thus are eligible for subsidized
flood insurance;
(8) while some property owners take advantage of the program
allowing subsidized flood insurance without requiring mitigation
action, others are trapped in a vicious cycle of suffering
flooding, then repairing flood damage, then suffering flooding,
without the means to mitigate losses or move out of harm's way;
(9) mitigation of repetitive-loss properties through buyouts,
elevations, relocations, or flood-proofing will produce savings for
policyholders under the program and for Federal taxpayers through
reduced flood insurance losses and reduced Federal disaster
assistance;
(10) a strategy of making mitigation offers aimed at high-
priority repetitive-loss properties and shifting more of the burden
of recovery costs to property owners who choose to remain
vulnerable to repetitive flood damage can encourage property owners
to take appropriate actions that reduce loss of life and property
damage and benefit the financial soundness of the program;
(11) the method for addressing repetitive-loss properties
should be flexible enough to take into consideration legitimate
circumstances that may prevent an owner from taking a mitigation
action; and
(12) focusing the mitigation and buy-out of repetitive loss
properties upon communities and property owners that choose to
voluntarily participate in a mitigation and buy-out program will
maximize the benefits of such a program, while minimizing any
adverse impact on communities and property owners.

bf6fea6702ae0f1820cc20ec532c9ce94a79dbafd29d68ed03d735950aea141a

TITLE II

-MISCELLANEOUS PROVISIONS

(a) Borrowing Authority.--The first sentence of section 1309(a) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)), is
amended by striking ``through December'' and all that follows through
``, and'' and inserting ``through the date specified in section 1319,
and''.
(b) Authority for Contracts.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026), is amended by striking
``after'' and all that follows and inserting ``after September 30,
2008.''.
(c) Emergency Implementation.--Section 1336(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4056(a)), is amended by striking
``during the period'' and all that follows through ``in accordance''
and inserting ``during the period ending on the date specified in
section 1319, in accordance''.
(d) Authorization of Appropriations for Studies.--Section 1376(c)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4127(c)), is
amended by striking ``through'' and all that follows and inserting
``through the date specified in section 1319, for studies under this
title.''.

d26b84c7561290c3be7407d595d5848a018ad39b4dcad5673748ba0c96268b12

REPETITIVE LOSS PROPERTIES.
(a) In General.--The National Flood Insurance Act of 1968 is
amended by inserting after section 1361 (42 U.S.C. 4102) the following:
``SEC. 1361A. PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE LOSS
PROPERTIES.
``(a) Authority.--To the extent amounts are made available for use
under this section, the Director may, subject to the limitations of
this section, provide financial assistance to States and communities
that decide to participate in the pilot program established under this
section for taking actions with respect to severe repetitive loss
properties (as such term is defined in subsection (b)) to mitigate
flood damage to such properties and losses to the National Flood
Insurance Fund from such properties.
``(b) Severe Repetitive Loss Property.--For purposes of this
section, the term `severe repetitive loss property' has the following
meaning:
``(1) Single-family properties.--In the case of a property
consisting of 1 to 4 residences, such term means a property that--
``(A) is covered under a contract for flood insurance made
available under this title; and
``(B) has incurred flood-related damage--
``(i) for which 4 or more separate claims payments have
been made under flood insurance coverage under this title,
with the amount of each such claim exceeding $5,000, and
with the cumulative amount of such claims payments
exceeding $20,000; or
``(ii) for which at least 2 separate claims payments
have been made under such coverage, with the cumulative
amount of such claims exceeding the value of the property.
``(2) Multifamily properties.--In the case of a property
consisting of 5 or more residences, such term shall have such
meaning as the Director shall by regulation provide.
``(c) Eligible Activities.--Amounts provided under this section to
a State or community may be used only for the following activities:
``(1) Mitigation activities.--To carry out mitigation
activities that reduce flood damages to severe repetitive loss
properties, including elevation, relocation, demolition, and
floodproofing of structures, and minor physical localized flood
control projects, and the demolition and rebuilding of properties
to at least Base Flood Elevation or greater, if required by any
local ordinance.
``(2) Purchase.--To purchase severe repetitive loss properties,
subject to subsection (g).
``(d) Matching Requirement.--
``(1) In general.--Except as provided in paragraph (2), in any
fiscal year the Director may not provide assistance under this
section to a State or community in an amount exceeding 3 times the
amount that the State or community certifies, as the Director shall
require, that the State or community will contribute from non-
Federal funds for carrying out the eligible activities to be funded
with such assistance amounts.
``(2) Reduced community match.--With respect to any 1-year
period in which assistance is made available under this section,
the Director may adjust the contribution required under paragraph
(1) by any State, and for the communities located in that State, to
not less than 10 percent of the cost of the activities for each
severe repetitive loss property for which grant amounts are
provided if, for such year--
``(A) the State has an approved State mitigation plan
meeting the requirements for hazard mitigation planning under
section 322 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165) that specifies how
the State intends to reduce the number of severe repetitive
loss properties; and
``(B) the Director determines, after consultation with the
State, that the State has taken actions to reduce the number of
such properties.
``(3) Non-federal funds.--For purposes of this subsection, the
term `non-Federal funds' includes State or local agency funds, in-
kind contributions, any salary paid to staff to carry out the
eligible activities of the recipient, the value of the time and
services contributed by volunteers to carry out such activities (at
a rate determined by the Director), and the value of any donated
material or building and the value of any lease on a building.
``(e) Notice of Mitigation Program.--
``(1) In general.--Upon selecting a State or community to
receive assistance under subsection (a) to carry out eligible
activities, the Director shall notify the owners of a severe
repetitive loss property, in plain language, within that State or
community--
``(A) that their property meets the definition of a severe
repetitive loss property under this section;
``(B) that they may receive an offer of assistance under
this section;
``(C) of the types of assistance potentially available
under this section;
``(D) of the implications of declining such offer of
assistance under this section; and
``(E) that there is a right to appeal under this section.
``(2) Identification of severe repetitive loss properties.--The
Director shall take such steps as are necessary to identify severe
repetitive loss properties, and submit that information to the
relevant States and communities.
``(f) Standards for Mitigation Offers.--The program under this
section for providing assistance for eligible activities for severe
repetitive loss properties shall be subject to the following
limitations:
``(1) Priority.--In determining the properties for which to
provide assistance for eligible activities under subsection (c),
the Director shall provide assistance for properties in the order
that will result in the greatest amount of savings to the National
Flood Insurance Fund in the shortest period of time, in a manner
consistent with the allocation formula under paragraph (5).
``(2) Offers.--The Director shall provide assistance in a
manner that permits States and communities to make offers to owners
of severe repetitive loss properties to take eligible activities
under subsection (c) as soon as practicable.
``(3) Consultation.--In determining for which eligible
activities under subsection (c) to provide assistance with respect
to a severe repetitive loss property, the relevant States and
communities shall consult, to the extent practicable, with the
owner of the property.
``(4) Deference to local mitigation decisions.--The Director
shall not, by rule, regulation, or order, establish a priority for
funding eligible activities under this section that gives
preference to one type or category of eligible activity over any
other type or category of eligible activity.
``(5) Allocation.--
``(A) In general.--Subject to subparagraphs (B) and (C), of
the total amount made available for assistance under this
section in any fiscal year, the Director shall allocate
assistance to a State, and the communities located within that
State, based upon the percentage of the total number of severe
repetitive loss properties located within that State.
``(B) Redistribution.--Any funds allocated to a State, and
the communities within the State, under subparagraph (A) that
have not been obligated by the end of each fiscal year shall be
redistributed by the Director to other States and communities
to carry out eligible activities in accordance with this
section.
``(C) Exception.--Of the total amount made available for
assistance under this section in any fiscal year, 10 percent
shall be made available to communities that--
``(i) contain one or more severe repetitive loss
properties; and
``(ii) are located in States that receive little or no
assistance, as determined by the Director, under the
allocation formula under subparagraph (A).
``(6) Notice.--Upon making an offer to provide assistance with
respect to a property for any eligible activity under subsection
(c), the State or community shall notify each holder of a recorded
interest on the property of such offer and activity.
``(g) Purchase Offers.--A State or community may take action under
subsection (c)(2) to purchase a severe repetitive loss property only if
the following requirements are met:
``(1) Use of property.--The State or community enters into an
agreement with the Director that provides assurances that the
property purchased will be used in a manner that is consistent with
the requirements of section 404(b)(2)(B) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5170c(b)(2)(B)) for properties acquired, accepted, or from which a
structure will be removed pursuant to a project provided property
acquisition and relocation assistance under such section 404(b).
``(2) Offers.--The Director shall provide assistance in a
manner that permits States and communities to make offers to owners
of severe repetitive loss properties and of associated land to
engage in eligible activities as soon as possible.
``(3) Purchase price.--The amount of purchase offer is not less
than the greatest of--
``(A) the amount of the original purchase price of the
property, when purchased by the holder of the current policy of
flood insurance under this title;
``(B) the total amount owed, at the time the offer to
purchase is made, under any loan secured by a recorded interest
on the property; and
``(C) an amount equal to the fair market value of the
property immediately before the most recent flood event
affecting the property, or an amount equal to the current fair
market value of the property.
``(4) Comparable housing payment.--If a purchase offer made
under paragraph (2) is less than the cost of the homeowner-occupant
to purchase a comparable replacement dwelling outside the flood
hazard area in the same community, the Director shall make
available an additional relocation payment to the homeowner-
occupant to apply to the difference.
``(h) Increased Premiums in Cases of Refusal To Mitigate.--
``(1) In general.--In any case in which the owner of a severe
repetitive loss property refuses an offer to take action under
paragraph (1) or (2) of subsection (c) with respect to such
property, the Director shall--
``(A) notify each holder of a recorded interest on the
property of such refusal; and
``(B) notwithstanding subsections (a) through (c) of
section 1308, thereafter the chargeable premium rate with
respect to the property shall be the amount equal to 150
percent of the chargeable rate for the property at the time
that the offer was made, as adjusted by any other premium
adjustments otherwise applicable to the property and any
subsequent increases pursuant to paragraph (2) and subject to
the limitation under paragraph (3).
``(2) Increased premiums upon subsequent flood damage.--
Notwithstanding subsections (a) through (c) of section 1308, if the
owner of a severe repetitive loss property does not accept an offer
to take action under paragraph (1) or (2) of subsection (c) with
respect to such property and a claim payment exceeding $1,500 is
made under flood insurance coverage under this title for damage to
the property caused by a flood event occurring after such offer is
made, thereafter the chargeable premium rate with respect to the
property shall be the amount equal to 150 percent of the chargeable
rate for the property at the time of such flood event, as adjusted
by any other premium adjustments otherwise applicable to the
property and any subsequent increases pursuant to this paragraph
and subject to the limitation under paragraph (3).
``(3) Limitation on increased premiums.--In no case may the
chargeable premium rate for a severe repetitive loss property be
increased pursuant to this subsection to an amount exceeding the
applicable estimated risk premium rate for the area (or subdivision
thereof) under section 1307(a)(1).
``(4) Treatment of deductibles.--Any increase in chargeable
premium rates required under this subsection for a severe
repetitive loss property may be carried out, to the extent
appropriate, as determined by the Director, by adjusting any
deductible charged in connection with flood insurance coverage
under this title for the property.
``(5) Notice of continued offer.--Upon each renewal or
modification of any flood insurance coverage under this title for a
severe repetitive loss property, the Director shall notify the
owner that the offer made pursuant to subsection (c) is still open.
``(6) Appeals.--
``(A) In general.--Any owner of a severe repetitive loss
property may appeal a determination of the Director to take
action under paragraph (1)(B) or (2) with respect to such
property, based only upon the following grounds:
``(i) As a result of such action, the owner of the
property will not be able to purchase a replacement primary
residence of comparable value and that is functionally
equivalent.
``(ii) Based on independent information, such as
contractor estimates or appraisals, the property owner
believes that the price offered for purchasing the property
is not an accurate estimation of the value of the property,
or the amount of Federal funds offered for mitigation
activities, when combined with funds from non-Federal
sources, will not cover the actual cost of mitigation.
``(iii) As a result of such action, the preservation or
maintenance of any prehistoric or historic district, site,
building, structure, or object included in, or eligible for
inclusion in, the National Register of Historic Places will
be interfered with, impaired, or disrupted.
``(iv) The flooding that resulted in the flood
insurance claims described in subsection (b)(2) for the
property resulted from significant actions by a third party
in violation of Federal, State, or local law, ordinance, or
regulation.
``(v) In purchasing the property, the owner relied upon
flood insurance rate maps of the Federal Emergency
Management Agency that were current at the time and did not
indicate that the property was located in an area having
special flood hazards.
``(vi) The owner of the property, based on independent
information, such as contractor estimates or other
appraisals, demonstrates that an alternative eligible
activity under subsection (c) is at least as cost effective
as the initial offer of assistance.
``(B) Procedure.--An appeal under this paragraph of a
determination of the Director shall be made by filing, with the
Director, a request for an appeal within 90 days after
receiving notice of such determination. Upon receiving the
request, the Director shall select, from a list of independent
third parties compiled by the Director for such purpose, a
party to hear such appeal. Within 90 days after filing of the
request for the appeal, such third party shall review the
determination of the Director and shall set aside such
determination if the third party determines that the grounds
under subparagraph (A) exist. During the pendency of an appeal
under this paragraph, the Director shall stay the applicability
of the rates established pursuant to paragraph (1)(B) or (2),
as applicable.
``(C) Effect of final determination.--In an appeal under
this paragraph--
``(i) if a final determination is made in favor of the
property owner under subparagraph (A) exist, the third
party hearing such appeal shall require the Director to
reduce the chargeable risk premium rate for flood insurance
coverage for the property involved in the appeal from the
amount required under paragraph (1)(B) or (2) to the amount
paid prior to the offer to take action under paragraph (1)
or (2) of subsection (c); and
``(ii) if a final determination is made that the
grounds under subparagraph (A) do not exist, the Director
shall promptly increase the chargeable risk premium rate
for such property to the amount established pursuant to
paragraph (1)(B) or (2), as applicable, and shall collect
from the property owner the amount necessary to cover the
stay of the applicability of such increased rates during
the pendency of the appeal.
``(D) Costs.--If the third party hearing an appeal under
this paragraph is compensated for such service, the costs of
such compensation shall be borne--
``(i) by the owner of the property requesting the
appeal, if the final determination in the appeal is that
the grounds under subparagraph (A) do not exist; and
``(ii) by the National Flood Insurance Fund, if such
final determination is that the grounds under subparagraph
(A) do exist.
``(E) Report.--Not later than 6 months after the date of
the enactment of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004, the Director shall submit a
report describing the rules, procedures, and administration for
appeals under this paragraph to--
``(i) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
``(ii) the Committee on Financial Services of the House
of Representatives.
``(i) Discretionary Actions in Cases of Fraudulent Claims.--If the
Director determines that a fraudulent claim was made under flood
insurance coverage under this title for a severe repetitive loss
property, the Director may--
``(1) cancel the policy and deny the provision to such
policyholder of any new flood insurance coverage under this title
for the property; or
``(2) refuse to renew the policy with such policyholder upon
expiration and deny the provision of any new flood insurance
coverage under this title to such policyholder for the property.
``(j) Rules.--
``(1) In general.--The Director shall, by rule--
``(A) subject to subsection (f)(4), develop procedures for
the distribution of funds to States and communities to carry
out eligible activities under this section; and
``(B) ensure that the procedures developed under paragraph
(1)--
``(i) require the Director to notify States and
communities of the availability of funding under this
section, and that participation in the pilot program under
this section is optional;
``(ii) provide that the Director may assist States and
communities in identifying severe repetitive loss
properties within States or communities;
``(iii) allow each State and community to select
properties to be the subject of eligible activities, and
the appropriate eligible activity to be performed with
respect to each severe repetitive loss property; and
``(iv) require each State or community to submit a list
of severe repetitive loss properties to the Director that
the State or community would like to be the subject of
eligible activities under this section.
``(2) Consultation.--Not later than 90 days after the date of
enactment of this Act, the Director shall consult with State and
local officials in carrying out paragraph (1)(A), and provide an
opportunity for an oral presentation, on the record, of data and
arguments from such officials.
``(k) Funding.--
``(1) In general.--Pursuant to section 1310(a)(8), the Director
may use amounts from the National Flood Insurance Fund to provide
assistance under this section in each of fiscal years 2005, 2006,
2007, 2008, and 2009, except that the amount so used in each such
fiscal year may not exceed $40,000,000 and shall remain available
until expended. Notwithstanding any other provision of this title,
amounts made available pursuant to this subsection shall not be
subject to offsetting collections through premium rates for flood
insurance coverage under this title.
``(2) Administrative expenses.--Of the amounts made available
under this subsection, the Director may use up to 5 percent for
expenses associated with the administration of this section.
``(l) Termination.--The Director may not provide assistance under
this section to any State or community after September 30, 2009.''.
(b) Availability of National Flood Insurance Fund Amounts.--Section
1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a))
is amended--
(1) in paragraph (7), by striking ``and'' at the end; and
(2) by striking paragraph (8) and inserting the following:
``(8) for financial assistance under section 1361A to States
and communities for taking actions under such section with respect
to severe repetitive loss properties, but only to the extent
provided in section 1361A(i); and''.

8793e2e087a0ecf4b2ac649c89b1a98d8f4f215fbdcd751ec048a2324cd329f9

PROGRAM.
(a) Standard for Approval of Mitigation Plans.--Section 1366(e)(3)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended by adding at the end the following new sentence: ``The Director
may approve only mitigation plans that give priority for funding to
such properties, or to such subsets of properties, as are in the best
interest of the National Flood Insurance Fund.''.
(b) Priority for Mitigation Assistance.--Section 1366(e) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended by
striking paragraph (4) and inserting the following:
``(4) Priority for mitigation assistance.--In providing grants
under this subsection for mitigation activities, the Director shall
give first priority for funding to such properties, or to such
subsets of such properties as the Director may establish, that the
Director determines are in the best interests of the National Flood
Insurance Fund and for which matching amounts under subsection (f)
are available.''.
(c) Coordination With States and Communities.--Section 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended by
adding at the end the following:
``(m) Coordination With States and Communities.--The Director
shall, in consultation and coordination with States and communities
take such actions as are appropriate to encourage and improve
participation in the national flood insurance program of owners of
properties, including owners of properties that are not located in
areas having special flood hazards (the 100-year floodplain), but are
located within flood prone areas.''.
(d) Funding.--Section 1367 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104d) is amended--
(1) in subsection (b), by striking paragraph (1) and inserting
the following:
``(1) in each fiscal year, amounts from the National Flood
Insurance Fund not exceeding $40,000,000, to remain available until
expended;'';
(2) by redesignating subsections (c) and (d) as subsections (d)
and (e), respectively; and
(3) by inserting after subsection (b) the following:
``(c) Administrative Expenses.--The Director may use not more than
5 percent of amounts made available under subsection (b) to cover
salaries, expenses, and other administrative costs incurred by the
Director to make grants and provide assistance under sections 1366 and
1323.''.
(e) Reduced Community Match.--Section 1366(g) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104c(g)), is amended--
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Reduced community match.--With respect to any 1-year
period in which assistance is made available under this section,
the Director may adjust the contribution required under paragraph
(1) by any State, and for the communities located in that State, to
not less than 10 percent of the cost of the activities for each
severe repetitive loss property for which grant amounts are
provided if, for such year--
``(A) the State has an approved State mitigation plan
meeting the requirements for hazard mitigation planning under
section 322 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165) that specifies how
the State intends to reduce the number of severe repetitive
loss properties; and
``(B) the Director determines, after consultation with the
State, that the State has taken actions to reduce the number of
such properties.''.
(f) National Flood Mitigation Fund.--Section 1366(b)(2) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c(b)(2)), is
amended by striking ``$1,500,000'' and inserting ``7.5 percent of the
available funds under this section''.

fd9cb8dac240f944f3657e384373a6eb4e7e671477069ef48441250a3e22ca53

INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.) is amended by adding at the end the
following:
``SEC. 1323. GRANTS FOR REPETITIVE INSURANCE CLAIMS PROPERTIES.
``(a) In General.--The Director may provide funding for mitigation
actions that reduce flood damages to individual properties for which 1
or more claim payments for losses have been made under flood insurance
coverage under this title, but only if the Director determines that--
``(1) such activities are in the best interest of the National
Flood Insurance Fund; and
``(2) such activities cannot be funded under the program under
section 1366 because--
``(A) the requirements of section 1366(g) are not being met
by the State or community in which the property is located; or
``(B) the State or community does not have the capacity to
manage such activities.
``(b) Priority for Worst-Case Properties.--In determining the
properties for which funding is to be provided under this section, the
Director shall consult with the States in which such properties are
located and provide assistance for properties in the order that will
result in the greatest amount of savings to the National Flood
Insurance Fund in the shortest period of time.''.
(b) Availability of National Flood Insurance Fund Amounts.--Section
1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a))
is amended by adding at the end the following:
``(9) for funding, not to exceed $10,000,000 in any fiscal
year, for mitigation actions under section 1323, except that,
notwithstanding any other provision of this title, amounts made
available pursuant to this paragraph shall not be subject to
offsetting collections through premium rates for flood insurance
coverage under this title.''.

426c5f02120983e10ec61cb9261fc563822ff0815744be0655dbc8bda406b5af

LAND USE AND CONTROL MEASURES.
(a) Compliance With Land Use and Control Measures.--Section 1304(b)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is
amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``compliance'' and inserting ``implementing
measures that are consistent''; and
(B) by inserting ``by the community'' after
``established'';
(2) in paragraph (2), by striking ``have flood damage in which
the cost of repairs equals or exceeds 50 percent of the value of
the structure at the time of the flood event; and'' and inserting
``are substantially damaged structures;''
(3) in paragraph (3), by striking ``compliance with land use
and control measures.'' and inserting ``the implementation of such
measures; and''; and
(4) by inserting after paragraph (3) and before the last
undesignated paragraph the following:
``(4) properties for which an offer of mitigation assistance is
made under--
``(A) section 1366 (Flood Mitigation Assistance Program);
``(B) section 1368 (Repetitive Loss Priority Program and
Individual Priority Property Program);
``(C) the Hazard Mitigation Grant Program authorized under
section 404 of the Robert T. Stafford Disaster Assistance and
Emergency Relief Act (42 U.S.C. 5170c);
``(D) the Predisaster Hazard Mitigation Program under
section 203 of the Robert T. Stafford Disaster Assistance and
Emergency Relief Act (42 U.S.C. 5133); and
``(E) any programs authorized or for which funds are
appropriated to address any unmet needs or for which
supplemental funds are made available.''.
(b) Definitions.--Section 1370(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4121(a)) is amended--
(1) by striking paragraph (7) and inserting the following:
``(7) the term `repetitive loss structure' means a structure
covered by a contract for flood insurance that--
``(A) has incurred flood-related damage on 2 occasions, in
which the cost of repair, on the average, equaled or exceeded
25 percent of the value of the structure at the time of each
such flood event; and
``(B) at the time of the second incidence of flood-related
damage, the contract for flood insurance contains increased
cost of compliance coverage.'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14), by striking the period and inserting ``;
and''; and
(4) by adding at the end the following:
``(15) the term `substantially damaged structure' means a
structure covered by a contract for flood insurance that has
incurred damage for which the cost of repair exceeds an amount
specified in any regulation promulgated by the Director, or by a
community ordinance, whichever is lower.''.

cb15e3c73173163da37587ece9340169f2eaed4cf8cb100d9f11ac3480457ae1

(a) In General.--Section 1308 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015) is amended by striking subsection (c) and
inserting the following:
``(c) Actuarial Rate Properties.--Subject only to the limitations
provided under paragraphs (1) and (2), the chargeable rate shall not be
less than the applicable estimated risk premium rate for such area (or
subdivision thereof) under section 1307(a)(1) with respect to the
following properties:
``(1) Post-firm properties.--Any property the construction or
substantial improvement of which the Director determines has been
started after December 31, 1974, or started after the effective
date of the initial rate map published by the Director under
paragraph (2) of section 1360 for the area in which such property
is located, whichever is later, except that the chargeable rate for
properties under this paragraph shall be subject to the limitation
under subsection (e).
``(2) Certain leased coastal and river properties.--Any
property leased from the Federal Government (including residential
and nonresidential properties) that the Director determines is
located on the river-facing side of any dike, levee, or other
riverine flood control structure, or seaward of any seawall or
other coastal flood control structure.''.
(b) Inapplicability of Annual Limitations on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C.
4015(e)) is amended by striking ``Notwithstanding'' and inserting
``Except with respect to properties described under paragraph (2) or
(3) of subsection (c), and notwithstanding''.

8643b57ae1e343f3591c198e302f5455b8e10c10c5f035bfb48c1ed7b6b9d222

For the purposes of flood insurance and floodplain management
activities conducted pursuant to the National Flood Insurance Program
under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), geospatial digital flood hazard data distributed by the Federal
Emergency Management Agency, or its designee, or the printed products
derived from that data, are interchangeable and legally equivalent for
the determination of the location of 1 in 100 year and 1 in 500 year
flood planes, provided that all other geospatial data shown on the
printed product meets or exceeds any accuracy standard promulgated by
the Federal Emergency Management Agency.

477cc6a4607fcf828ecfd259433908512e8617aa16a494d1b17c3ade4b619165

Section 1315 of the National Flood Insurance Act of 1968 (42 U.S.C.
4022) is amended by adding at the end the following:
``(c) Replacement of Mobile Homes on Original Sites.--
``(1) Community participation.--The placement of any mobile
home on any site shall not affect the eligibility of any community
to participate in the flood insurance program under this title and
the Flood Disaster Protection Act of 1973 (notwithstanding that
such placement may fail to comply with any elevation or flood
damage mitigation requirements), if--
``(A) such mobile home was previously located on such site;
``(B) such mobile home was relocated from such site because
of flooding that threatened or affected such site; and
``(C) such replacement is conducted not later than the
expiration of the 180-day period that begins upon the
subsidence (in the area of such site) of the body of water that
flooded to a level considered lower than flood levels.
``(2) Definition.--For purposes of this subsection, the term
`mobile home' has the meaning given such term in the law of the
State in which the mobile home is located.''.

324d47b790ce638f7f822cf976445cf5eca172beba436fbffc2c7c3773168a96

As directed in section 1360(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4101(b)), the Director of the Federal Emergency
Management Agency is again directed to accelerate the identification of
risk zones within flood-prone and mudslide-prone areas, as provided by
subsection (a)(2) of such section 1360, in order to make known the
degree of hazard within each such zone at the earliest possible date.

3f3831ce3a77ea676237ceabac5b836370f12e60e109709f7ac3ca04238fb92e

In this title, the following definitions shall apply:
(1) Director.--The term ``Director'' means the Director of the
Federal Emergency Management Agency.
(2) Flood insurance policy.--The term ``flood insurance
policy'' means a flood insurance policy issued under the National
Flood Insurance Act of 1968 (42 U.S.C. et seq.).
(3) Program.--The term ``Program'' means the National Flood
Insurance Program established under the National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.).

2789f9856a20203b6bc93e87268028ea6ec119bb2877304f4922a1d4d96d323e

(a) In General.--Not later than 6 months after the date of
enactment of this Act, the Director shall develop supplemental forms to
be issued in conjunction with the issuance of a flood insurance policy
that set forth, in simple terms--
(1) the exact coverages being purchased by a policyholder;
(2) any exclusions from coverage that apply to the coverages
purchased;
(3) an explanation, including illustrations, of how lost items
and damages will be valued under the policy at the time of loss;
(4) the number and dollar value of claims filed under a flood
insurance policy over the life of the property, and the effect,
under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), of the filing of any further claims under a flood insurance
policy with respect to that property; and
(5) any other information that the Director determines will be
helpful to policyholders in understanding flood insurance coverage.
(b) Distribution.--The forms developed under subsection (a) shall
be given to--
(1) all holders of a flood insurance policy at the time of
purchase and renewal; and
(2) insurance companies and agents that are authorized to sell
flood insurance policies.

59a6175337d1794c95e6084b749ca76240a486dff76e24b8dcfa4c124a543eb7

(a) In General.--Not later than 6 months after the date of
enactment of this Act, the Director shall develop an acknowledgement
form to be signed by the purchaser of a flood insurance policy that
contains--
(1) an acknowledgement that the purchaser has received a copy
of the standard flood insurance policy, and any forms developed
under section 202; and
(2) an acknowledgement that the purchaser has been told that
the contents of a property or dwelling are not covered under the
terms of the standard flood insurance policy, and that the
policyholder has the option to purchase additional coverage for
such contents.
(b) Distribution.--Copies of an acknowledgement form executed under
subsection (a) shall be made available to the purchaser and the
Director.

9157eb6b83166d6c2a5ae160b8a2b8b2e43339e907a610de5a7c2b036d6df505

(a) In General.--Not later than 6 months after the date of
enactment of this Act, the Director shall develop a flood insurance
claims handbook that contains--
(1) a description of the procedures to be followed to file a
claim under the Program, including how to pursue a claim to
completion;
(2) how to file supplementary claims, proof of loss, and any
other information relating to the filing of claims under the
Program; and
(3) detailed information regarding the appeals process
established under section 205.
(b) Distribution.--The handbook developed under subsection (a)
shall be made available to--
(1) each insurance company and agent authorized to sell flood
insurance policies; and
(2) each purchaser, at the time of purchase and renewal, of a
flood insurance policy, and at the time of any flood loss sustained
by such purchaser.

cbf6e471c846038b8e860a7081414696f74e10e4cdec3aad731144272dc0c767

Not later than 6 months after the date of enactment of this Act,
the Director shall, by regulation, establish an appeals process through
which holders of a flood insurance policy may appeal the decisions,
with respect to claims, proofs of loss, and loss estimates relating to
such flood insurance policy, of--
(1) any insurance agent or adjuster, or insurance company; or
(2) any employee or contractor of the Federal Emergency
Management Agency.

47ebac9f83e88736e9861f1bdd91195bb19b864608b66bd19310f168af9adc93

Not later than 1 year after the date of enactment of this Act, the
Director of the Federal Emergency Management Agency shall submit to
Congress a report that sets forth--
(1) the use of cost of compliance coverage under section
1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C.
4011(b)) in connection with flood insurance policies;
(2) any barriers to policyholders using the funds provided by
cost of compliance coverage under that section 1304(b) under a
flood insurance policy, and recommendations to address those
barriers; and
(3) the steps that the Federal Emergency Management Agency has
taken to ensure that funds paid for cost of compliance coverage
under that section 1304(b) are being used to lessen the burdens on
all homeowners and the Program.

89b53855ec43ab8ac3439908c06300c6880ec789c32ab1c21ec99538c386b0d7

The Director of the Federal Emergency Management Agency shall, in
cooperation with the insurance industry, State insurance regulators,
and other interested parties--
(1) establish minimum training and education requirements for
all insurance agents who sell flood insurance policies; and
(2) not later than 6 months after the date of enactment of this
Act, publish these requirements in the Federal Register, and inform
insurance companies and agents of the requirements.

d70c0895f55e7d1c5d971fb3d9e4dc9a2162d4c456383837377fbe3e1f2f533b

(a) Study.--The Comptroller General of the United States shall
conduct a study of--
(1) the adequacy of the scope of coverage provided under flood
insurance policies in meeting the intended goal of Congress that
flood victims be restored to their pre-flood conditions, and any
recommendations to ensure that goal is being met;
(2) the adequacy of payments to flood victims under flood
insurance policies; and
(3) the practices of the Federal Emergency Management Agency
and insurance adjusters in estimating losses incurred during a
flood, and how such practices affect the adequacy of payments to
flood victims.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General shall submit to Congress a report
regarding the results of the study under subsection (a).

724cc3ced1e4cbc3645fcf86567dd68f50e0c8f97c9f04d8961e9b58d1ce9fb1

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015) is amended by adding at the end the following:
``(f) Adjustment of Premium.--Notwithstanding any other provision
of law, if the Director determines that the holder of a flood insurance
policy issued under this Act is paying a lower premium than is required
under this section due to an error in the flood plain determination,
the Director may only prospectively charge the higher premium rate.''.

20f316eabb96c74905ee642b22a34629e77f8db7804a18ebe07f3fea718d83e8

ARRANGEMENTS.
Not later than 3 months after the date of enactment of this Act,
the Director shall submit a report on any changes or modifications made
to the fee schedule or fee payment arrangements between the Federal
Emergency Management Agency and insurance adjusters who provide
services with respect to flood insurance policies to--
(1) the Committee on Banking, Housing, and Urban Affairs of the
Senate; and
(2) the Committee on Financial Services of the House of
Representatives.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

529a24a59277a480ef3feb109171a0ea422f06ce3c31d1eacf6c718f999ea817

Bunning-Bereuter-Blumenaur Flood Insurance Reform Act of 2004 — S. 2238

Other Sections

TITLE I

TITLE II

Want the full experience?