21ST CENTURY FLOOD REFORM ACT; Congressional Record Vol. 163, No. 186
(House of Representatives - November 14, 2017)

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[Pages H9209-H9238]
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                     21ST CENTURY FLOOD REFORM ACT

  Mr. HENSARLING. Mr. Speaker, pursuant to House Resolution 616, I call 
up the bill (H.R. 2874) to achieve reforms to improve the financial 
stability of the National Flood Insurance Program, to enhance the 
development of more accurate estimates of flood risk through new 
technology and better maps, to increase the role of private markets in 
the management of flood insurance risks, and to provide for alternative 
methods to insure against flood peril, and for other purposes, and ask 
for its immediate consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 616, in lieu of 
the amendment in the nature of a substitute recommended by the 
Committee on Financial Services printed in the bill, the amendment 
printed in part A of House Report 115-408, modified by the amendment 
printed in part B of the report, is adopted and the bill, as amended, 
is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 2874

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled.

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``21st 
     Century Flood Reform Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Annual limitation on premium increases.
Sec. 103. Flood insurance affordability program.
Sec. 104. Disclosure of premium methodology.
Sec. 105. Consideration of coastal and inland locations in premium 
              rates.
Sec. 106. Monthly installment payment of premiums.
Sec. 107. Enhanced clear communication of flood risks.
Sec. 108. Availability of flood insurance information upon request.
Sec. 109. Disclosure of flood risk information upon transfer of 
              property.
Sec. 110. Voluntary community-based flood insurance pilot program.
Sec. 111. Use of replacement cost in determining premium rates.
Sec. 112. Cap on premiums.
Sec. 113. Premium rates for certain mitigated properties.
Sec. 114. Study of flood insurance coverage for units in cooperative 
              housing.
Sec. 115. Pilot program for properties with preexisting conditions.
Sec. 116. Federal Flood Insurance Advisory Committee.
Sec. 117. Interagency guidance on compliance.
Sec. 118. GAO study of claims adjustment practices.
Sec. 119. GAO study of flood insurance coverage treatment of earth 
              movement.
Sec. 120. Definitions.

TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

Sec. 201. Private flood insurance.

[[Page H9210]]

Sec. 202. Opt-out of mandatory coverage requirement for commercial 
              properties.
Sec. 203. Elimination of non-compete requirement.
Sec. 204. Public availability of program information.
Sec. 205. Refund of premiums upon cancellation of policy because of 
              replacement with private flood insurance.
Sec. 206. GAO study of flood damage savings accounts.
Sec. 207. Demonstration program for flood damage savings accounts.

                      TITLE III--MAPPING FAIRNESS

Sec. 301. Use of other risk assessment tools in determining premium 
              rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard 
              areas.
Sec. 304. Communication and outreach regarding map changes.
Sec. 305. Sharing and use of maps and data.
Sec. 306. Community flood maps.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

Sec. 401. Provision of Community Rating System premium credits to 
              maximum number of communities practicable.
Sec. 402. Community accountability for repetitively flooded areas.
Sec. 403. Increased cost of compliance coverage.

                       TITLE V--PROGRAM INTEGRITY

Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability 
              surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive 
              lifetime claims.
Sec. 506. Prohibition of new coverage for structures with high-value 
              replacement costs.
Sec. 507. Pay for performance and streamlining costs and reimbursement.
Sec. 508. Enforcement of mandatory purchase requirements.
Sec. 509. Satisfaction of mandatory purchase requirement in States 
              allowing all-perils policies.
Sec. 510. Flood insurance purchase requirements.
Sec. 511. Clarifications; deadline for approval of claims.
Sec. 512. Risk transfer requirement.
Sec. 513. GAO study of simplification of National Flood Insurance 
              Program.
Sec. 514. GAO study on enforcement of mandatory purchase requirements.

                    TITLE VI--ADMINISTRATIVE REFORMS

Sec. 601. Penalties for fraud and false statements in the National 
              Flood Insurance Program.
Sec. 602. Enhanced policyholder appeals process rights.
Sec. 603. Deadline for approval of claims.
Sec. 604. Litigation process oversight and reform.
Sec. 605. Prohibition on hiring disbarred attorneys.
Sec. 606. Technical assistance reports.
Sec. 607. Improved disclosure requirement for standard flood insurance 
              policies.
Sec. 608. Reserve Fund amounts.
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 610. Limited exemption for disaster or catastrophe claims 
              adjusters.

           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

     SEC. 101. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Financing.--Section 1309(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
     striking ``September 30, 2017'' and inserting ``September 30, 
     2022''.
       (b) Program Expiration.--Section 1319 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
     ``September 30, 2017'' and inserting ``September 30, 2022''.

     SEC. 102. ANNUAL LIMITATION ON PREMIUM INCREASES.

       Section 1308(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended--
       (1) in paragraph (1), by striking ``18 percent'' and 
     inserting ``15 percent''; and
       (2) in paragraph (2)--
       (A) by striking ``5 percent'' and inserting ``6.5 
     percent''; and
       (B) by inserting before the semicolon at the end the 
     following: ``, except that (A) during the 12-month period on 
     the date of the enactment of the 21st Century Flood Reform 
     Act this paragraph shall be applied by substituting `5 
     percent' for `6.5 percent', (B) during the 12-month period 
     beginning upon the expiration of the period referred to in 
     clause (A), this paragraph shall be applied by substituting 
     `5.5 percent' for `6.5 percent', and (C) during the 12-month 
     period beginning upon the expiration of the period referred 
     to in clause (B), this paragraph shall be applied by 
     substituting `6.0 percent' for `6.5 percent' ''.

     SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM.

       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 new section:

     ``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.

       ``(a) Authority.--The Administrator shall carry out a 
     program under this section to provide financial assistance, 
     through State programs carried out by participating States, 
     for eligible low-income households residing in eligible 
     properties to purchase policies for flood insurance coverage 
     made available under this title.
       ``(b) Participation.--Participation in the program under 
     this section shall be voluntary on the part of a State or 
     consortium of States.
       ``(c) State Administration.--Each participating State shall 
     delegate to a State agency or nonprofit organization the 
     responsibilities for administrating the State's program under 
     this section.
       ``(d) Eligible Households.--
       ``(1) In general.--During any fiscal year, assistance under 
     the program under this section may be provided only for a 
     household that has an income, as determined for such fiscal 
     year by the participating State in which such household 
     resides, that is less than the income limitation established 
     for such fiscal year for purposes of the State program by the 
     participating State, except that--
       ``(A) assistance under the program under this section may 
     not be provided for a household having a income that exceeds 
     the greater of--
       ``(i) the amount equal to 150 percent of the poverty level 
     for such State; or
       ``(ii) the amount equal to 60 percent of the median income 
     of households residing in such State; and
       ``(B) a State may not exclude a household from eligibility 
     in a fiscal year solely on the basis of household income if 
     such income is less than 110 percent of the poverty level for 
     the State in which such household resides.
       ``(2) State verification of income eligibility.--In 
     verifying income eligibility for purposes of paragraph (1), 
     the participating State may apply procedures and policies 
     consistent with procedures and policies used by the State 
     agency administering programs under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), under title XX 
     of the Social Security Act (42 U.S.C. 1397 et seq.), under 
     subtitle B of title VI of the Omnibus Budget Reconciliation 
     Act of 1981 (42 U.S.C. 9901 et seq.; relating to community 
     services block grant program), under any other provision of 
     law that carries out programs which were administered under 
     the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) 
     before August 13, 1981, or under other income assistance or 
     service programs (as determined by the State).
       ``(3) Certification by state of eligibility households.--
     For each fiscal year, each participating State shall certify 
     to the Administrator compliance of households who are to be 
     provided assistance under the State program during such 
     fiscal year with the income requirements under paragraph (1).
       ``(e) Eligible Properties.--Assistance under the program 
     under this section may be provided only for a residential 
     property--
       ``(1) that has 4 or fewer residences;
       ``(2) that is owned and occupied by an eligible household;
       ``(3) for which a base flood elevation is identified on a 
     flood insurance rate map of the Administrator that is in 
     effect;
       ``(4) for which such other information is available as the 
     Administrator considers necessary to determine the flood risk 
     associated with such property; and
       ``(5) that is located in a community that is participating 
     in the national flood insurance program.
       ``(f) Types of Assistance.--Under the program under this 
     section, a participating State shall elect to provide 
     financial assistance for eligible households in one of the 
     following forms:
       ``(1) Limitation on rate increases.--By establishing a 
     limitation on the rate of increases in the amount of 
     chargeable premiums paid by eligible households for flood 
     insurance coverage made available under this title.
       ``(2) Limitation on rates.--By establishing a limitation on 
     the amount of chargeable premiums paid by eligible households 
     for flood insurance coverage made available under this title.
       ``(g) Notification to FEMA.--Under the program under this 
     section, a participating State shall, on a fiscal year basis 
     and at the time and in the manner provided by the 
     Administrator--
       ``(1) identify for the Administrator the eligible 
     households residing in the State who are to be provided 
     assistance under the State program during such fiscal year; 
     and
       ``(2) notify the Administrator of the type and levels of 
     assistance elected under subsection (f) to be provided under 
     the State program with respect to such eligible households 
     residing in the State.
       ``(h) Amount of Assistance.--Under the program under this 
     section, in each fiscal year the Administrator shall, 
     notwithstanding section 1308, make flood insurance coverage 
     available for purchase by households identified as eligible 
     households for such fiscal year by a participating State 
     pursuant to subsection (e) at chargeable premium rates that 
     are discounted by an amount that is based on the type and 
     levels of assistance elected pursuant to subsection

[[Page H9211]]

     (f) by the participating State for such fiscal year.
       ``(i) Billing Statement.--In the case of an eligible 
     household for which assistance under the program under this 
     section is provided with respect to a policy for flood 
     insurance coverage, the annual billing statement for such 
     policy shall include statements of the following amounts:
       ``(1) The estimated risk premium rate for the property 
     under section 1307(a)(1).
       ``(2) If applicable, the estimated risk premium rate for 
     the property under section 1307(a)(2).
       ``(3) The chargeable risk premium rate for the property 
     taking into consideration the discount pursuant to subsection 
     (h).
       ``(4) The amount of the discount pursuant to subsection (h) 
     for the property.
       ``(5) The number and dollar value of claims filed for the 
     property, over the life of the property, under a flood 
     insurance policy made available under the Program and the 
     effect, under this Act, of filing any further claims under a 
     flood insurance policy with respect to that property.
       ``(j) Funding Through State Affordability Surcharges.--
       ``(1) Imposition and collection.--Notwithstanding section 
     1308, for each fiscal year in which flood insurance coverage 
     under this title is made available for properties in a 
     participating State at chargeable premium rates that are 
     discounted pursuant to subsection (f), the Administrator 
     shall impose and collect a State affordability surcharge on 
     each policy for flood insurance coverage for a property 
     located in such participating State that is (A) not a 
     residential property having 4 or fewer residences, or (B) is 
     such a residential property but is owned by a household that 
     is not an eligible household for purposes of such fiscal 
     year.
       ``(2) Amount.--The amount of the State affordability 
     surcharge imposed during a fiscal year on each such policy 
     for a property in a participating State shall be--
       ``(A) sufficient such that the aggregate amount of all such 
     State affordability surcharges imposed on properties in such 
     participating State during such fiscal year is equal to the 
     aggregate amount by which all policies for flood insurance 
     coverage under this title sold during such fiscal year for 
     properties owned by eligible households in the participating 
     State are discounted pursuant to subsection (f); and
       ``(B) the same amount for each property in the 
     participating State being charged such a surplus.
       ``(k) Treatment of Other Surcharges.--The provision of 
     assistance under the program under this section with respect 
     to any property and any limitation on premiums or premium 
     increases pursuant to subsection (f) for the property shall 
     not affect the applicability or amount of any surcharge under 
     section 1308A for the property, of any increase in premiums 
     charged for the property pursuant to section 1310A(c), or of 
     any equivalency fee under section 1308B for the property.
       ``(l) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Participating state.--The term `participating State' 
     means, with respect to a fiscal year, a State that is 
     participating in the program under this section for such 
     fiscal year.
       ``(2) Eligible household.--The term `eligible household' 
     means, with respect to a fiscal year and a participating 
     State, a household that has an income that is less than the 
     amount of the income limitation for the fiscal year 
     established for purposes of the State program of such 
     participating State pursuant to subsection (g)(1).
       ``(3) Poverty level.--The term `poverty level'' means, with 
     respect to a household in any State, the income poverty line 
     as prescribed and revised at least annually pursuant to 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2)), as applicable to such State.
       ``(4) State.--The term `State' shall include a consortium 
     of States established for purposes of administrating the 
     program under this section with respect to the member States 
     of the consortium.
       ``(5) State program.--The term `State program' means a 
     program carried out in compliance with this section by a 
     participating State in conjunction with the program under 
     this section of the Administrator.
       ``(m) Regulations.--The Administrator shall issue such 
     regulations as may be necessary to carry out the program 
     under this section.''.

     SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015) is amended by adding at the end the 
     following new subsection:
       ``(n) Disclosure of Premium Methodology.--
       ``(1) Disclosure.--Six months prior to the effective date 
     of risk premium rates, the Administrator shall cause to be 
     published in the Federal Register an explanation of the bases 
     for, and methodology used to determine, the chargeable 
     premium rates to be effective for flood insurance coverage 
     under this title.
       ``(2) Alignment with industry practices.--The disclosure 
     required under paragraph (1) shall, to the extent 
     practicable, be aligned with industry patterns and practices 
     and shall include information and data recommended by the 
     State insurance commissioners guidelines on rate filings.
       ``(3) Public meetings.--The Administrator shall, on an 
     annual basis, hold at least one public meeting in each of the 
     geographical regions of the United States, as defined by the 
     Administrator for purposes of the National Flood Insurance 
     Program, for the purpose of explaining the methodology 
     described in paragraph (1) and answering questions and 
     receiving comments regarding such methodology. The 
     Administrator shall provide notice of each such public 
     meeting in advance, in such manner, and in using such means 
     as are reasonably designed to notify interested parties and 
     members of the public of the date and time, location, and 
     purpose of such meeting, and of how to submit questions or 
     comments.''.

     SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN 
                   PREMIUM RATES.

       (a) Estimates of Premium Rates.--Subparagraph (A) of 
     section 1307(a)(1) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4014(a)(1)(A)) is amended--
       (1) in clause (i), by striking ``and'' at the end; and
       (2) by adding at the end the following new clause:
       ``(iii) the differences in flood risk for properties 
     impacted by coastal flood risk and properties impacted by 
     riverine, or inland flood risk; and''.
       (b) Establishment of Chargeable Premium Rates.--Paragraph 
     (1) of section 1308(b) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4015(b)(1)) is amended by inserting ``due to 
     differences in flood risk resulting from coastal flood 
     hazards and riverine, or inland flood hazards and'' after 
     ``including differences in risks''.
       (c) Revised Rates.--Not later than the expiration of the 
     two-year period beginning on the date of the enactment of 
     this Act, the Administrator of the Federal Emergency 
     Management Agency shall revise risk premium rates under the 
     National Flood Insurance Program to implement the amendments 
     made by this section.

     SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

       (a) Authority.--Subsection (g) of section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is 
     amended--
       (1) by striking the subsection designation and all that 
     follows through ``With respect'' and inserting the following:
       ``(g) Frequency of Premium Collection.--
       ``(1) Options.--With respect''; and
       (2) by adding at the end the following:
       ``(2) Monthly installment payment of premiums.--
       ``(A) Exemption from rulemaking.--Until such time as the 
     Administrator promulgates regulations implementing paragraph 
     (1) of this subsection, the Administrator may adopt policies 
     and procedures, notwithstanding any other provisions of law 
     and in alignment and consistent with existing industry escrow 
     and servicing standards, necessary to implement such 
     paragraph without undergoing notice and comment rulemaking 
     and without conducting regulatory analyses otherwise required 
     by statute, regulation, or Executive order.
       ``(B) Pilot program.--The Administrator may initially 
     implement paragraph (1) of this subsection as a pilot program 
     that provides for a gradual phase-in of implementation.
       ``(C) Policyholder protection.--The Administrator may--
       ``(i) during the 12-month period beginning on the date of 
     the enactment of this subparagraph, charge policyholders 
     choosing to pay premiums in monthly installments a fee for 
     the total cost of the monthly collection of premiums not to 
     exceed $25 annually; and
       ``(ii) after the expiration of the 12-month period referred 
     to in clause (i), adjust the fee charged annually to cover 
     the total cost of the monthly collection of premiums as 
     determined by the report submitted pursuant to subparagraph 
     (D).
       ``(D) Report.--Not later than six months after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit a report to the Committee on Financial Services of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate, that sets forth all 
     of the costs associated with the monthly payment of premiums, 
     including any up-front costs associated with infrastructure 
     development, the impact on all policyholders including those 
     that exercise the option to pay monthly and those that do 
     not, options for minimizing the costs, particularly the costs 
     to policyholders, and the feasibility of adopting practices 
     that serve to minimize costs to policyholders such as 
     automatic payments and electronic payments.
       ``(E) Annual reports.--On an annual basis, the 
     Administrator shall report to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate the ongoing 
     costs associated with the monthly payment of premiums.''.
       (b) Implementation.--Clause (ii) of section 1307(a)(1)(B) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4014(a)(1)(B)(ii)) is amended by inserting before ``any 
     administrative expenses'' the following: ``the costs 
     associated with the monthly collection of premiums provided 
     for in section 1308(g) (42 U.S.C. 4015(g)), but only if such 
     costs exceed the operating costs and allowances set forth in 
     clause (i) of this subparagraph, and''.

     SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.

       (a) In General.--Subsection (l) of section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is 
     amended to read as follows:

[[Page H9212]]

       ``(l) Clear Communications.--
       ``(1) Newly issued and renewed policies.--For all policies 
     for flood insurance coverage under the National Flood 
     Insurance Program that are newly issued or renewed, the 
     Administrator shall clearly communicate to policyholders--
       ``(A) their full flood risk determinations, regardless of 
     whether their premium rates are full actuarial rates; and
       ``(B) the number and dollar value of claims filed for the 
     property, over the life of the property, under a flood 
     insurance policy made available under the Program and the 
     effect, under this Act, of filing any further claims under a 
     flood insurance policy with respect to that property.''.
       (b) Effective Date.--Subsection (l) of section 1308 of the 
     National Flood Insurance Act of 1968, as added by subsection 
     (a) of this section, shall take effect beginning upon the 
     expiration of the 12-month period that begins on the date of 
     the enactment of this Act. Such subsection (l), as in effect 
     immediately before the amendment made by paragraph (1), shall 
     apply during such 12-month period.

     SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON 
                   REQUEST.

       Section 1313 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4020) is amended--
       (1) by inserting ``(a) Public Information and Data.--'' 
     after ``Sec. 1313.''; and
       (2) by adding at the end the following new subsection:
       ``(b) Availability of Flood Insurance Information Upon 
     Request.--Not later than 30 days after a request for such 
     information by the current owner of a property, the 
     Administrator shall provide to the owner any information, 
     including historical information, available to the 
     Administrator on flood insurance program coverage, payment of 
     claims, and flood damages for the property at issue, and any 
     information the Administrator has on whether the property 
     owner may be required to purchase coverage under the National 
     Flood Insurance Program due to previous receipt of Federal 
     disaster assistance, including assistance provided by the 
     Small Business Administration, the Department of Housing and 
     Urban Development, or the Federal Emergency Management 
     Agency, or any other type of assistance that subjects the 
     property to the mandatory purchase requirement under section 
     102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4012a).''.

     SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER 
                   OF PROPERTY.

       (a) In General.--Chapter 1 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4011 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. DISCLOSURE OF FLOOD RISK INFORMATION UPON 
                   TRANSFER OF PROPERTY.

       ``(a) Requirement for Participation in Program.--After 
     September 30, 2022, no new flood insurance coverage may be 
     provided under this title for any real property located in 
     any area (or subdivision thereof) unless an appropriate body 
     has imposed, by statute or regulation, a duty on any seller 
     or lessor of improved real estate located in such area to 
     provide to any purchaser or lessee of such property a 
     property flood hazard disclosure which the Administrator has 
     determined meets the requirements of subsection (b).
       ``(b) Disclosure Requirements.--A property flood hazard 
     disclosure for a property shall meet the requirements of this 
     subsection only if the disclosure--
       ``(1) is made in writing;
       ``(2) discloses any actual knowledge of the seller or 
     lessor of--
       ``(A) prior physical damage caused by flood to any building 
     located on the property;
       ``(B) prior insurance claims for losses covered under the 
     National Flood Insurance Program or private flood insurance 
     with respect to such property;
       ``(C) any previous notification regarding the designation 
     of the property as a multiple loss property; and
       ``(D) any Federal legal obligation to obtain and maintain 
     flood insurance running with the property, such as any 
     obligation due to a previous form of disaster assistance 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act received by any owner of the property; and
       ``(3) is delivered by or on behalf of the seller or lessor 
     to the purchaser or lessee before such purchaser or lessee 
     becomes obligated under any contract for purchase or lease of 
     the property.''.
       (b) Availability of Flood Insurance Coverage.--Subsection 
     (c) of section 1305 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4012(c)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) given satisfactory assurance that by September 30, 
     2022, property flood hazard disclosure requirements will have 
     been adopted for the area that meet the requirements of 
     section 1326.''.

     SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT 
                   PROGRAM.

       (a) Establishment.--The Administrator of the Federal 
     Emergency Management Agency (in this section referred to as 
     the ``Administrator'') may carry out a community-based flood 
     insurance pilot program to make available, for purchase by 
     participating communities, a single, community-wide flood 
     insurance policy under the National Flood Insurance Program 
     that--
       (1) covers all residential and non-residential properties 
     within the community; and
       (2) satisfies, for all such properties within the 
     community, the mandatory purchase requirements under section 
     102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4012a).
       (b) Participation.--Participation by a community in the 
     pilot program under this section shall be entirely voluntary 
     on the part of the community.
       (c) Requirements for Community-wide Policies.--The 
     Administrator shall ensure that a community-wide flood 
     insurance policy made available under the pilot program under 
     this section incorporates the following requirements:
       (1) A mapping requirement for properties covered by the 
     policy.
       (2) A cap on premiums.
       (3) A deductible.
       (4) Certification or accreditation of mitigation 
     infrastructure when available and appropriate.
       (5) A community audit.
       (6) The Community Rating System under section 1315(b) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)).
       (7) A method of preventing redundant claims payments by the 
     National Flood Insurance Program in the case of a claim by an 
     individual property owner who is covered by a community-wide 
     flood insurance policy and an individual policy obtained 
     through the Program.
       (8) Coverage for damage arising from flooding that complies 
     with the standards under the National Flood Insurance Program 
     appropriate to the nature and type of property covered.
       (d) Timing.--The Administrator may establish the 
     demonstration program under this section not later than the 
     expiration of the 180-day period beginning on the date of the 
     enactment of this Act and the program shall terminate on 
     September 30, 2022.
       (e) Definition of Community.--For purposes of this section, 
     the term ``community'' means any unit of local government, 
     within the meaning given such term under the laws of the 
     applicable State.

     SEC. 111. USE OF REPLACEMENT COST IN DETERMINING PREMIUM 
                   RATES.

       (a) Study of Risk Rating Redesign Flood Insurance Premium 
     Rating Options.--
       (1) Study.--The Administrator of the Federal Emergency 
     Management Agency shall conduct a study to--
       (A) evaluate insurance industry best practices for risk 
     rating and classification, including practices related to 
     replacement cost value in premium rate estimations;
       (B) assess options, methods, and strategies for including 
     replacement cost value in the Administrator's estimates under 
     section 1307(a)(1) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4014(a)(1));
       (C) provide recommendations for including replacement cost 
     value in the estimate of the risk premium rates for flood 
     insurance under such section 1307(a)(1);
       (D) identify an appropriate methodology to incorporate 
     replacement cost value into the Administrator's estimates 
     under such section 1307(a)(1);
       (E) develop a feasible implementation plan and projected 
     timeline for including replacement cost value in the 
     estimates of risk premium rates for flood insurance made 
     available under the National Flood Insurance Program.
       (2) Report.--
       (A) Requirement.--Not later than the expiration of the 12-
     month period beginning on the date of the enactment of this 
     Act, the Administrator shall submit to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report that contains the results and conclusions of 
     the study required under paragraph (1).
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include--
       (i) an analysis of the recommendations resulting from the 
     study under paragraph (1) and any potential impacts on the 
     National Flood Insurance Program, including cost 
     considerations;
       (ii) a description of any actions taken by the 
     Administrator to implement the study recommendations; and
       (iii) a description of any study recommendations that have 
     been deferred or not acted upon, together with a statement 
     explaining the reasons for such deferral or inaction.
       (b) Use of Replacement Cost Value in Premium Rates; 
     Implementation.--
       (1) Estimated rates.--Paragraph (1) of section 1307(a) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 
     4014(a)(1)) is amended, in the matter preceding subparagraph 
     (A), by inserting after ``flood insurance'' the following: 
     ``, which shall incorporate replacement cost value, and''.
       (2) Chargeable rates.--Subsection (b) of section 1308 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)) 
     is amended, in the matter preceding paragraph (1), by 
     inserting after ``Such rates'' the following: ``shall 
     incorporate replacement cost value and''.
       (3) Effective date.--The amendments under paragraphs (1) 
     and (2) of this subsection shall be made upon the expiration 
     of the 12-month period beginning on the date of the enactment 
     of this Act.
       (4) Applicability and phase-in.--The Administrator of the 
     Federal Emergency Management Agency shall apply the 
     amendments

[[Page H9213]]

     under paragraphs (1) and (2) to flood insurance coverage made 
     available under the National Flood Insurance Act of 1968 for 
     properties located in various geographic regions in the 
     United States such that--
       (A) over the period beginning upon the expiration of the 
     period referred to in paragraph (3) of this subsection and 
     ending on December 31, 2020, the requirement under such 
     amendments shall be gradually phased in geographically 
     throughout the United States as sufficient information for 
     such implementation becomes available; and
       (B) after the expiration of such period referred to in 
     subparagraph (A), such amendments shall apply to all flood 
     insurance coverage made available under the National Flood 
     Insurance Act of 1968.

     SEC. 112. CAP ON PREMIUMS.

       Paragraph (1) of section 1308(e) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
       (1) by striking ``except --'' and inserting ``except as 
     provided in paragraph (4); and'';
       (2) by striking subparagraphs (A) and (B);
       (3) in subparagraph (C)--
       (A) in clause (ii), by redesignating subclauses (I) and 
     (II) as items (aa) and (bb), respectively;
       (B) by redesignating clauses (i) through (iii) as 
     subclauses (I) through (III), respectively; and
       (C) by striking ``(C) in the case of a property that--'' 
     and inserting the following:
       ``(B) The limitations under clauses (i) and (ii) of 
     subparagraph (A) shall not apply in the case of--
       ``(i) a property identified under section 1307(g); or
       ``(ii) a property that--'';
       (4) by striking ``under this title for any property'' and 
     inserting the following: ``under this title--
       ``(i) for any property'';
       (5) by inserting ``(A) subject to subparagraph (B),'' after 
     the paragraph designation; and
       (6) by inserting before subparagraph (B), as so 
     redesignated by the amendment made by paragraph (3)(C) of 
     this section, the following new clause:
       ``(ii) for any residential property having 4 or fewer 
     residences and for which there is elevation data meeting 
     standards of the Administrator, may not exceed $10,000 in any 
     single year, except that such amount (as it may have been 
     previously adjusted) shall be adjusted for inflation by the 
     Administrator upon the expiration of the 5-year period 
     beginning upon the date of the enactment of the 21st Century 
     Flood Reform Act and upon the expiration of each successive 
     5-year period thereafter, in accordance with an inflationary 
     index selected by the Administrator.''.

     SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.

       (a) Mitigation Strategies.--Paragraph (1) of section 
     1361(d) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4102(d)(1)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking ``and'' at the end; 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraphs:
       ``(C) with respect to buildings in dense urban 
     environments, methods that can be deployed on a block or 
     neighborhood scale; and
       ``(D) elevation of mechanical systems; and''.
       (b) Mitigation Credit.--Subsection (k) of section 1308 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) 
     is amended--
       (1) by striking ``shall take into account'' and inserting 
     the following: ``shall--
       ``(1) take into account'';
       (2) in paragraph (1), as so designated by the amendment 
     made by paragraph (1) of this subsection, by striking the 
     period at the end and inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(2) offer a reduction of the risk premium rate charged to 
     a policyholder, as determined by the Administrator, if the 
     policyholder implements any mitigation method described in 
     paragraph (1).''.

     SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN 
                   COOPERATIVE HOUSING.

       The Administrator of the Federal Emergency Management 
     Agency shall conduct a study to analyze and determine the 
     feasibility of providing flood insurance coverage under the 
     National Flood Insurance Program under the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4001 et seq.) for individual 
     dwelling units in cooperative housing projects. Not later 
     than the expiration of the 24-month period beginning on the 
     date of the enactment of this Act, the Administrator shall 
     submit a report to the Committee on Financial Services of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate regarding the 
     findings and conclusions of the study conducted pursuant to 
     this section, which shall include a plan setting forth 
     specific actions to implement the development of such flood 
     insurance coverage.

     SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING 
                   CONDITIONS.

       Section 1311 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4018) is amended by adding at the end the 
     following new subsection:
       ``(c) Pilot Program for Investigation of Preexisting 
     Structural Conditions.--
       ``(1) Voluntary program.--The Administrator shall carry out 
     a pilot program under this subsection to provide for 
     companies participating in the Write Your Own program (as 
     such term is defined in section 1370(a) (42 U.S.C. 4121(a))) 
     to investigate preexisting structural conditions of insured 
     properties and potentially insured properties that could 
     result in the denial of a claim under a policy for flood 
     insurance coverage under this title in the event of a flood 
     loss to such property. Participation in the pilot program 
     shall be voluntary on the part of Write Your Own companies.
       ``(2) Investigation of properties.--Under the pilot program 
     under this subsection, a Write Your Own company participating 
     in the program shall--
       ``(A) provide in policies for flood insurance coverage 
     under this title covered by the program that, upon the 
     request of the policyholder, the company shall provide for--
       ``(i) an investigation of the property covered by such 
     policy, using common methods, to determine whether 
     preexisting structural conditions are present that could 
     result in the denial of a claim under such policy for flood 
     losses; and
       ``(ii) if such investigation is not determinative, an on-
     site inspection of the property to determine whether such 
     preexisting structural conditions are present;
       ``(B) upon completion of an investigation or inspection 
     pursuant to subparagraph (A) that determines that such a 
     preexisting structural condition is present or absent, submit 
     a report to the policyholder and Administrator describing the 
     condition; and
       ``(C) impose a surcharge on each policy described in 
     subparagraph (A) in such amount that the Administrator 
     determines is appropriate to cover the costs of 
     investigations and inspections performed pursuant to such 
     policies and reimburse Write Your Own companies participating 
     in the program under this subsection for such costs.
       ``(3) Interim report.--Not later than December 31, 2021, 
     the Administrator shall submit a report to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate describing the operation of the pilot program to that 
     date.
       ``(4) Sunset.--The Administrator may not provide any policy 
     for flood insurance described in paragraph (2)(A) after 
     December 31, 2022.
       ``(5) Final report.--Not later than March 31, 2023, the 
     Administrator shall submit a final report regarding the pilot 
     program under this section to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate. The report 
     shall include any findings and recommendations of the 
     Administrator regarding the pilot program.''.

     SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

       (a) Establishment.--There is established an advisory 
     committee to be known as the Federal Flood Insurance Advisory 
     Committee (in this section referred to as the ``Committee'').
       (b) Membership.--
       (1) Members.--The Committee shall consist of--
       (A) the Administrator of the Federal Emergency Management 
     Agency (in this section referred to as the 
     ``Administrator''), or the designee thereof;
       (B) the Secretary of the Treasury, or the designee thereof; 
     and
       (C) additional members appointed by the Administrator or 
     the designee of the Administrator, who shall be--
       (i) two representatives of the property and casualty 
     insurance sector;
       (ii) one individual who served in the past, or is currently 
     serving, as an insurance regulator of a State, the District 
     of Columbia, the Commonwealth of Puerto Rico, Guam, the 
     Commonwealth of the Northern Mariana Islands, the Virgin 
     Islands, American Samoa, or any federally-recognized Indian 
     tribe;
       (iii) one representative of the financial or insurance 
     sectors who is involved in risk transfers, including 
     reinsurance, resilience bonds, and other insurance-linked 
     securities;
       (iv) one actuary with demonstrated high-level knowledge of 
     catastrophic risk insurance;
       (v) two insurance professionals with demonstrated 
     experience with the sale of flood insurance under the 
     National Flood Insurance Program;
       (vi) two representatives of catastrophic risk insurance 
     programs;
       (vii) one insurance claims specialist;
       (viii) one representative of a recognized consumer advocacy 
     organization;
       (ix) one individual having demonstrated expertise in the 
     challenges in insuring low-income communities;
       (x) one representative from an academic institution who has 
     demonstrated expertise in insurance; and
       (xi) such other recognized experts in the field of 
     insurance as the Administrator considers necessary.
       (2) Qualifications.--In appointing members under paragraph 
     (1)(C), the Administrator shall, to the maximum extent 
     practicable, ensure the membership of the Committee has a 
     balance of members reflecting geographic diversity, including 
     representation from areas inland or with coastline identified 
     by the Administrator as at high risk for flooding or as areas 
     having special flood hazards.

[[Page H9214]]

       (c) Duties.--The Committee shall review, and make 
     recommendations to the Administrator, upon request, on 
     matters related to the insurance aspects of the National 
     Flood Insurance Program, including ratemaking, technology to 
     administer insurance, risk assessment, actuarial practices, 
     claims practices, sales and insurance delivery, compensation 
     and allowances, generally and based on the complexities of 
     the program, and best insurance practices.
       (d) Chairperson.--The members of the Committee shall elect 
     one member to serve as the chairperson of the Committee (in 
     this section referred to as the ``Chairperson'').
       (e) Compensation.--Members of the Committee shall receive 
     no additional compensation by reason of their service on the 
     Committee.
       (f) Meetings and Actions.--
       (1) In general.--The Committee shall meet not less 
     frequently than twice each year at the request of the 
     Chairperson or a majority of its members, and may take action 
     by a vote of the majority of the members in accordance with 
     the Committee's charter.
       (2) Initial meeting.--The Administrator, or a person 
     designated by the Administrator, shall request and coordinate 
     the initial meeting of the Committee.
       (g) Staff of FEMA.--Upon the request of the Chairperson, 
     the Administrator may detail, on a nonreimbursable basis, 
     personnel of the Federal Emergency Management Agency to 
     assist the Committee in carrying out its duties.
       (h) Powers.--In carrying out this section, the Committee 
     may hold hearings, receive evidence and assistance, provide 
     information, and conduct research, as it considers 
     appropriate.
       (i) Reports to Congress.--The Administrator, on an annual 
     basis, shall report to the Committee on Financial Services of 
     the House of Representatives, the Committee on Banking, 
     Housing, and Urban Affairs of the Senate, and the Office of 
     Management and Budget on--
       (1) the recommendations made by the Committee;
       (2) actions taken by the Federal Emergency Management 
     Agency to address such recommendations to improve the 
     insurance aspects of the national flood insurance program; 
     and
       (3) any recommendations made by the Committee that have 
     been deferred or not acted upon, together with an explanatory 
     statement.

     SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE.

       The Federal entities for lending regulation (as such term 
     is defined in section 3(a) of the Flood Disaster Protection 
     Act of 1973 (42 U.S.C. 4003(a))), in consultation with the 
     Administrator of the Federal Emergency Management Agency, 
     shall update and reissue the document entitled ``Interagency 
     Questions and Answers Regarding Flood Insurance'' not later 
     than the expiration of the 12-month period beginning on the 
     date of the enactment of this Act and not less frequently 
     than biennially thereafter.

     SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.

       The Comptroller General of the United States shall conduct 
     a study of the policies and practices for adjustment of 
     claims for losses under flood insurance coverage made 
     available under the National Flood Insurance Act, which shall 
     include--
       (1) a comparison of such policies and practices with the 
     policies and practices for adjustment of claims for losses 
     under other insurance coverage;
       (2) an assessment of the quality of the adjustments 
     conducted and the effects of such policies and practices on 
     such quality;
       (3) identification of any incentives under such policies 
     and practices that affect the speed with which such 
     adjustments are conducted; and
       (4) identification of the affects of such policies and 
     practices on insureds submitting such claims for losses.

     SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF 
                   EARTH MOVEMENT.

       The Comptroller General of the United States shall conduct 
     a study of the treatment, under flood insurance coverage made 
     available under the National Flood Insurance Act, of earth 
     movement and subsidence, including earth movement and 
     subsidence caused by flooding, which shall include--
       (1) identification and analysis of the effects of such 
     treatment on the National Flood Insurance Program and 
     insureds under the program;
       (2) an assessment of the availability and affordability of 
     coverage in the private insurance market for earth movement 
     and subsidence caused by flooding;
       (3) an assessment of the effects on the National Flood 
     Insurance Program of covering earth movement and subsidence 
     caused by flooding; and
       (4) a projection of the increased premiums that would be 
     required to make coverage for earth movement losses 
     actuarially sound and not fiscally detrimental to the 
     continuation of the National Flood Insurance Program.

     SEC. 120. DEFINITIONS.

       (a) National Flood Insurance Act of 1968.--Subsection (a) 
     of section 1370 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4121(a)) is amended--
       (1) in paragraph (14), by striking ``and'' at the end;
       (2) in paragraph (15), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(16) the term `Write Your Own Program' means the program 
     under which the Federal Emergency Management Agency enters 
     into a standard arrangement with private property insurance 
     companies to sell contracts for flood insurance coverage 
     under this title under their own business lines of insurance, 
     and to adjust and pay claims arising under such contracts; 
     and
       ``(17) the term `Write Your Own company' means a private 
     property insurance company that participates in the Write 
     Your Own Program.''.
       (b) Biggert-Waters Flood Insurance Reform Act of 2012.--
     Subsection (a) of section 100202 of the Biggert-Waters Flood 
     Insurance Reform Act of 2012 (42 U.S.C. 4004(a)) is amended 
     by striking paragraph (5) and inserting the following new 
     paragraph:
       ``(5) Write your own.--The terms `Write Your Own Program' 
     and `Write Your Own company' have the meanings given such 
     terms in section 1370(a) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4121(a)).''.

TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

     SEC. 201. PRIVATE FLOOD INSURANCE.

       (a) Mandatory Purchase Requirement.--
       (1) Amount and term of coverage.--Section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended 
     by striking ``Sec. 102. (a)'' and all that follows through 
     the end of subsection (a) and inserting the following:
       ``Sec. 102. (a) Amount and Term of Coverage.--After the 
     expiration of sixty days following the date of the enactment 
     of this Act, no Federal officer or agency shall approve any 
     financial assistance for acquisition or construction purposes 
     for use in any area that has been identified by the 
     Administrator as an area having special flood hazards and in 
     which the sale of flood insurance has been made available 
     under the National Flood Insurance Act of 1968, unless the 
     building or mobile home and any personal property to which 
     such financial assistance relates is covered by flood 
     insurance: Provided, That the amount of flood insurance (1) 
     in the case of Federal flood insurance, is at least equal to 
     the development or project cost of the building, mobile home, 
     or personal property (less estimated land cost), the 
     outstanding principal balance of the loan, or the maximum 
     limit of Federal flood insurance coverage made available with 
     respect to the particular type of property, whichever is 
     less; or (2) in the case of private flood insurance, is at 
     least equal to the development or project cost of the 
     building, mobile home, or personal property (less estimated 
     land cost), the outstanding principal balance of the loan, or 
     the maximum limit of Federal flood insurance coverage made 
     available with respect to the particular type of property, 
     whichever is less: Provided further, That if the financial 
     assistance provided is in the form of a loan or an insurance 
     or guaranty of a loan, the amount of flood insurance required 
     need not exceed the outstanding principal balance of the loan 
     and need not be required beyond the term of the loan. The 
     requirement of maintaining flood insurance shall apply during 
     the life of the property, regardless of transfer of ownership 
     of such property.''.
       (2) Requirement for mortgage loans.--Subsection (b) of 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(b)) is amended--
       (A) by striking paragraph (7);
       (B) by redesignating paragraph (6) as paragraph (7);
       (C) by striking the subsection designation and all that 
     follows through the end of paragraph (5) and inserting the 
     following:
       ``(b) Requirement for Mortgage Loans.--
       ``(1) Regulated lending institutions.--Each Federal entity 
     for lending regulation (after consultation and coordination 
     with the Financial Institutions Examination Council 
     established under the Federal Financial Institutions 
     Examination Council Act of 1974) shall by regulation direct 
     regulated lending institutions not to make, increase, extend, 
     or renew any loan secured by improved real estate or a mobile 
     home located or to be located in an area that has been 
     identified by the Administrator as an area having special 
     flood hazards and in which flood insurance has been made 
     available under the National Flood Insurance Act of 1968, 
     unless the building or mobile home and any personal property 
     securing such loan is covered for the term of the loan by 
     flood insurance: Provided, That the amount of flood insurance 
     (A) in the case of Federal flood insurance, is at least equal 
     to the outstanding principal balance of the loan or the 
     maximum limit of Federal flood insurance coverage made 
     available with respect to the particular type of property, 
     whichever is less; or (B) in the case of private flood 
     insurance, is at least equal to the outstanding principal 
     balance of the loan or the maximum limit of Federal flood 
     insurance coverage made available with respect to the 
     particular type of property, whichever is less.
       ``(2) Federal agency lenders and mortgage insurance and 
     guarantee agencies.--
       ``(A) Federal agency lenders.--A Federal agency lender may 
     not make, increase, extend, or renew any loan secured by 
     improved real estate or a mobile home located or to be 
     located in an area that has been identified by the 
     Administrator as an area having special flood hazards and in 
     which flood insurance has been made available under the 
     National

[[Page H9215]]

     Flood Insurance Act of 1968, unless the building or mobile 
     home and any personal property securing such loan is covered 
     for the term of the loan by flood insurance in accordance 
     with paragraph (1). Each Federal agency lender may issue any 
     regulations necessary to carry out this paragraph. Such 
     regulations shall be consistent with and substantially 
     identical to the regulations issued under paragraph (1).
       ``(B) Other federal mortgage entities.--
       ``(i) Coverage requirements.--Each covered Federal mortgage 
     entity shall implement procedures reasonably designed to 
     ensure that, for any loan that--

       ``(I) is secured by improved real estate or a mobile home 
     located in an area that has been identified, at the time of 
     the origination of the loan or at any time during the term of 
     the loan, by the Administrator as an area having special 
     flood hazards and in which flood insurance is available under 
     the National Flood Insurance Act of 1968, and
       ``(II) is made, insured, held, or guaranteed by such 
     entity, or backs or on which is based any trust certificate 
     or other security for which such entity guarantees the timely 
     payment of principal and interest,

     the building or mobile home and any personal property 
     securing the loan is covered for the term of the loan by 
     flood insurance in the amount provided in paragraph (1).
       ``(ii) Definition.--For purposes of this subparagraph, the 
     term `covered Federal mortgage entity' means--

       ``(I) the Secretary of Housing and Urban Development, with 
     respect to mortgages insured under the National Housing Act;
       ``(II) the Secretary of Agriculture, with respect to loans 
     made, insured, or guaranteed under title V of the Housing Act 
     of 1949; and
       ``(III) the Government National Mortgage Association.

       ``(C) Requirement to accept flood insurance.--Each Federal 
     agency lender and each covered Federal mortgage entity shall 
     accept flood insurance as satisfaction of the flood insurance 
     coverage requirement under subparagraph (A) or (B), 
     respectively, if the flood insurance coverage meets the 
     requirements for coverage under such subparagraph and the 
     requirements relating to financial strength issued pursuant 
     to paragraph (4).
       ``(3) Government-sponsored enterprises for housing.--The 
     Federal National Mortgage Association and the Federal Home 
     Loan Mortgage Corporation shall implement procedures 
     reasonably designed to ensure that, for any loan that is--
       ``(A) secured by improved real estate or a mobile home 
     located in an area that has been identified, at the time of 
     the origination of the loan or at any time during the term of 
     the loan, by the Administrator as an area having special 
     flood hazards and in which flood insurance is available under 
     the National Flood Insurance Act of 1968, and
       ``(B) purchased or guaranteed by such entity,
     the building or mobile home and any personal property 
     securing the loan is covered for the term of the loan by 
     flood insurance in the amount provided in paragraph (1). The 
     Federal National Mortgage Association and the Federal Home 
     Loan Mortgage Corporation shall accept flood insurance as 
     satisfaction of the flood insurance coverage requirement 
     under paragraph (1) if the flood insurance coverage provided 
     meets the requirements for coverage under that paragraph and 
     the requirements relating to financial strength issued 
     pursuant to paragraph (4).
       ``(4) Requirements regarding financial strength.--The 
     Director of the Federal Housing Finance Agency, in 
     consultation with the Federal National Mortgage Association, 
     the Federal Home Loan Mortgage Corporation, the Secretary of 
     Housing and Urban Development, the Government National 
     Mortgage Association, and the Secretary of Agriculture shall 
     develop and implement requirements relating to the financial 
     strength of private insurance companies from which such 
     entities and agencies will accept private flood insurance, 
     provided that such requirements shall not affect or conflict 
     with any State law, regulation, or procedure concerning the 
     regulation of the business of insurance.
       ``(5) Applicability.--
       ``(A) Existing coverage.--Except as provided in 
     subparagraph (B), paragraph (1) shall apply on the date of 
     enactment of the Riegle Community Development and Regulatory 
     Improvement Act of 1994.
       ``(B) New coverage.--Paragraphs (2) and (3) shall apply 
     only with respect to any loan made, increased, extended, or 
     renewed after the expiration of the 1-year period beginning 
     on the date of enactment of the Riegle Community Development 
     and Regulatory Improvement Act of 1994. Paragraph (1) shall 
     apply with respect to any loan made, increased, extended, or 
     renewed by any lender supervised by the Farm Credit 
     Administration only after the expiration of the period under 
     this subparagraph.
       ``(C) Continued effect of regulations.--Notwithstanding any 
     other provision of this subsection, the regulations to carry 
     out paragraph (1), as in effect immediately before the date 
     of enactment of the Riegle Community Development and 
     Regulatory Improvement Act of 1994, shall continue to apply 
     until the regulations issued to carry out paragraph (1) as 
     amended by section 522(a) of such Act take effect.
       ``(6) Rule of construction.--Except as otherwise specified, 
     any reference to flood insurance in this section shall be 
     considered to include Federal flood insurance and private 
     flood insurance. Nothing in this subsection shall be 
     construed to supersede or limit the authority of a Federal 
     entity for lending regulation, the Federal Housing Finance 
     Agency, a Federal agency lender, a covered Federal mortgage 
     entity (as such term is defined in paragraph (2)(B)(ii)), the 
     Federal National Mortgage Association, or the Federal Home 
     Loan Mortgage Corporation to establish requirements relating 
     to the financial strength of private insurance companies from 
     which the entity or agency will accept private flood 
     insurance, provided that such requirements shall not affect 
     or conflict with any State law, regulation, or procedure 
     concerning the regulation of the business of insurance.''; 
     and
       (D) by adding at the end the following new paragraphs:
       ``(8) Definitions.--In this section:
       ``(A) Flood insurance.--The term `flood insurance' means--
       ``(i) Federal flood insurance; and
       ``(ii) private flood insurance.
       ``(B) Federal flood insurance.--The term `Federal flood 
     insurance' means an insurance policy made available under the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
     seq.).
       ``(C) Mutual aid society.--The term `mutual aid society' 
     means an organization--
       ``(i) the members of which--

       ``(I) share a common set of ethical or religious beliefs; 
     and
       ``(II) in accordance with the beliefs described in 
     subclause (I), agree to cover expenses arising from damage to 
     property of the members of the organization, including damage 
     caused by flooding; and

       ``(ii) that has a demonstrated history of fulfilling the 
     terms of agreements to cover expenses arising from damage to 
     property of the members of the organization caused by 
     flooding.
       ``(D) Private flood insurance.--The term `private flood 
     insurance' means--
       ``(i) an insurance policy that--

       ``(I) is issued by an insurance company that is--

       ``(aa) licensed, admitted, or otherwise approved to engage 
     in the business of insurance in the State in which the 
     insured building is located, by the insurance regulator of 
     that State; or
       ``(bb) eligible as a nonadmitted insurer to provide 
     insurance in the home State of the insured, in accordance 
     with sections 521 through 527 of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (15 U.S.C. 8201 through 
     8206);

       ``(II) is issued by an insurance company that is not 
     otherwise disapproved as a surplus lines insurer by the 
     insurance regulator of the State in which the property to be 
     insured is located; and
       ``(III) provides flood insurance coverage that complies 
     with the laws and regulations of that State; or

       ``(ii) an agreement with a mutual aid society for such 
     society to cover expenses arising from damage to property of 
     the members of such society caused by flooding, unless the 
     State in which the property to be insured is located has--

       ``(I) determined that the specific mutual aid society may 
     not provide such coverage or provide such coverage in such 
     manner; or
       ``(II) specifically provided through law or regulation that 
     mutual aid societies may not provide such coverage or provide 
     such coverage in such manner.

       ``(E) State.--The term `State' means any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, Guam, the Northern Mariana Islands, the Virgin 
     Islands, and American Samoa.''.
       (b) Effect of Private Flood Insurance Coverage on 
     Continuous Coverage Requirements.--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:
       ``(o) Effect of Private Flood Insurance Coverage on 
     Continuous Coverage Requirements.--For purposes of applying 
     any statutory, regulatory, or administrative continuous 
     coverage requirement, including under section 1307(g)(1), the 
     Administrator shall consider any period during which a 
     property was continuously covered by private flood insurance 
     (as defined in section 102(b)(8) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(b)(8))) to be a 
     period of continuous coverage.''.

     SEC. 202. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR 
                   COMMERCIAL PROPERTIES.

       (a) Amendments to Flood Disaster Protection Act of 1973.--
     Effective on January 1, 2019, the Flood Disaster Protection 
     Act of 1973, as amended by the preceding provisions of this 
     Act, is further amended--
       (1) in section 3(a) (42 U.S.C. 4003(a))--
       (A) in paragraph (10), by striking ``and'' at the end;
       (B) in paragraph (11), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(12) `residential improved real estate' means improved 
     real estate that--
       ``(A) is primarily used for residential purposes, as 
     defined by the Federal entities for lending regulation; and
       ``(B) secures financing or financial assistance provided 
     through a federally related single family loan program, as 
     defined by the Federal entities for lending regulation.''; 
     and
       (2) in section 102 (42 U.S.C. 4012a)--
       (A) in subsection (b)--
       (i) in paragraph (1)--

[[Page H9216]]

       (I) by inserting ``residential'' before ``improved real 
     estate''; and
       (II) by inserting ``residential'' before ``building or 
     mobile home'';

       (ii) in paragraph (2)--

       (I) by inserting ``residential'' before ``improved real 
     estate'' each place such term appears; and
       (II) by inserting ``residential'' before ``building or 
     mobile home'' each place such term appears; and

       (iii) in paragraph (3)--

       (I) in subparagraph (A), by inserting ``residential'' 
     before ``improved real estate''; and
       (II) in the matter after and below subparagraph (B), by 
     inserting ``residential'' before ``building or mobile home'';

       (B) in subsection (c)(3), by striking ``, in the case of 
     any residential property, for any structure that is a part of 
     such property'' and inserting ``for any structure that is a 
     part of a residential property'';
       (C) in subsection (e)--
       (i) in paragraph (1)--

       (I) by inserting ``residential'' before ``improved real 
     estate''; and
       (II) by inserting ``residential'' before ``building or 
     mobile home'' each place such term appears; and

       (ii) in paragraph (5)--

       (I) in subparagraph (A)--

       (aa) by inserting ``residential'' before ``improved real 
     estate'' each place such term appears; and
       (bb) by inserting ``residential'' before ``building or 
     mobile home'' each place such term appears;

       (II) in subparagraph (B), by inserting ``residential'' 
     before ``building or mobile home'' each place such term 
     appears; and
       (III) in subparagraph (C), by inserting ``residential'' 
     before ``building or mobile home''; and

       (D) in subsection (h)--
       (i) by inserting ``residential'' before ``improved real 
     estate'' each place such term appears; and
       (ii) in the matter preceding paragraph (1), by inserting 
     ``residential'' before ``building or mobile home''.
       (b) Amendments to National Flood Insurance Act of 1968.--
     Effective on January 1, 2019, the National Flood Insurance 
     Act of 1968, as amended by the preceding provisions of this 
     Act, is further amended--
       (1) in section 1364(a) (42 U.S.C. 4104a(a))--
       (A) in paragraph (1), by inserting ``residential'' before 
     ``improved real estate'';
       (B) in paragraph (2), by inserting ``residential'' before 
     ``improved real estate''; and
       (C) in paragraph (3)(A), by inserting ``residential'' 
     before ``building'';
       (2) in section 1365 (42 U.S.C. 4104b)--
       (A) in subsection (a)--
       (i) by inserting ``residential'' before ``improved real 
     estate''; and
       (ii) by inserting ``residential'' before ``building'';
       (B) in subsection (b)(2)--
       (i) by inserting ``residential'' before ``building'' each 
     place such term appears; and
       (ii) by inserting ``residential'' before ``improved real 
     estate'' each place such term appears;
       (C) in subsection (d), by inserting ``residential'' before 
     ``improved real estate'' each place such term appears; and
       (D) in subsection (e)--
       (i) by inserting ``residential'' before ``improved real 
     estate''; and
       (ii) by inserting ``residential'' before ``building'' each 
     place such term appears; and
       (3) in section 1370 (42 U.S.C. 4121)--
       (A) in paragraph (8), by inserting ``residential'' before 
     ``improved real estate'';
       (B) by redesignating paragraphs (14) through (17) as 
     paragraphs (15) through (18), respectively; and
       (C) by inserting after paragraph (13) the following new 
     paragraph:
       ``(14) the term `residential improved real estate' means 
     improved real estate that--
       ``(A) is primarily used for residential purposes, as 
     defined by the Federal entities for lending regulation; and
       ``(B) secures financing or financial assistance provided 
     through a federally related single family loan program, as 
     defined by the Federal entities for lending regulation;''.
       (c) Rule of Construction.--This section and the amendments 
     made by this section may not be construed to prohibit the 
     Administrator of the Federal Emergency Management Agency from 
     offering flood insurance coverage under the National Flood 
     Insurance Program for eligible non-residential properties, 
     other residential multifamily properties, or structures 
     financed with commercial loans, or to prohibit the purchase 
     of such coverage for such eligible properties.

     SEC. 203. ELIMINATION OF NON-COMPETE REQUIREMENT.

       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:
       ``(f) Authority To Provide Other Flood Coverage.--
       ``(1) In general.--The Administrator may not, as a 
     condition of participating in the Write Your Own Program (as 
     such term is defined in section 1370(a)) or in otherwise 
     participating in the utilization by the Administrator of the 
     facilities and services of insurance companies, insurers, 
     insurance agents and brokers, and insurance adjustment 
     organizations pursuant to the authority in this section, nor 
     as a condition of eligibility to engage in any other 
     activities under the National Flood Insurance Program under 
     this title, restrict any such company, insurer, agent, 
     broker, or organization from offering and selling private 
     flood insurance (as such term is defined in section 102(b)(9) 
     of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4012a(b)(9))).
       ``(2) Financial assistance/subsidy arrangement.--After the 
     date of the enactment of this subsection--
       ``(A) the Administrator may not include in any agreement 
     entered into with any insurer for participation in the Write 
     Your Own Program any provision establishing a condition 
     prohibited by paragraph (1), including the provisions of 
     Article XIII of the Federal Emergency Management Agency, 
     Federal Insurance Administration, Financial Assistance/
     Subsidy Arrangement, as adopted pursuant to section 62.23(a) 
     of title 44 of the Code of Federal Regulations; and
       ``(B) any such provision in any such agreement entered into 
     before such date of enactment shall not have any force or 
     effect, and the Administrator may not take any action to 
     enforce such provision.''.

     SEC. 204. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

       Part C of chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

       ``(a) Flood Risk Information.--
       ``(1) In general.--Except as provided in paragraph (2), to 
     facilitate the National Flood Insurance Program becoming a 
     source of information and data for research and development 
     of technology that better understands flooding, the risk of 
     flooding, and the predictability of perils of flooding, the 
     Administrator shall make publicly available all data, models, 
     assessments, analytical tools, and other information in the 
     possession of the Administrator relating to the National 
     Flood Insurance Program under this title that is used in 
     assessing flood risk or identifying and establishing flood 
     elevations and premiums, including--
       ``(A) data relating to risk on individual properties and 
     loss ratio information and other information identifying 
     losses under the program;
       ``(B) current and historical policy information, limited to 
     the amount and term only, for properties currently covered by 
     flood insurance and for properties that are no longer covered 
     by flood insurance;
       ``(C) current and historical claims information, limited to 
     the date and amount paid only, for properties currently 
     covered by flood insurance and for properties that are no 
     longer covered by flood insurance;
       ``(D) identification of whether a property was constructed 
     before or after the effective date of the first flood 
     insurance rate map for a community;
       ``(E) identification of properties that have been mitigated 
     through elevation, a buyout, or any other mitigation action; 
     and
       ``(F) identification of unmitigated multiple-loss 
     properties.
       ``(2) Open source data system.--In carrying out paragraph 
     (1), the Administrator shall establish an open source data 
     system by which all information required to be made publicly 
     available by such subsection may be accessed by the public on 
     an immediate basis by electronic means.
       ``(b) Community Information.--Not later than the expiration 
     of the 12-month period beginning upon the date of the 
     enactment of this section, the Administrator shall establish 
     and maintain a publicly searchable database that provides 
     information about each community participating in the 
     National Flood Insurance Program, which shall include the 
     following information:
       ``(1) The status of the community's compliance with the 
     National Flood Insurance Program, including any findings of 
     noncompliance, the status of any enforcement actions 
     initiated by a State or by the Administrator, and the number 
     of days of any such continuing noncompliance.
       ``(2) The number of properties located in the community's 
     special flood hazard areas that were built before the 
     effective date of the first flood insurance rate map for the 
     community.
       ``(3) The number of properties located in the community's 
     special flood hazard areas that were built after the 
     effective date of the first flood insurance rate map for the 
     community.
       ``(4) The total number of current and historical claims 
     located outside the community's special flood hazard areas.
       ``(5) The total number of multiple-loss properties in the 
     community.
       ``(6) The portion of the community, stated as a percentage 
     and in terms of square miles, that is located within special 
     flood hazard areas.
       ``(c) Identification of Properties.--The information 
     provided pursuant to subsections (a) and (b) shall be based 
     on data that identifies properties at the zip code or census 
     block level, and shall include the name of the community and 
     State in which a property is located.
       ``(d) Protection of Personally Identifiable Information.--
     The information provided pursuant to subsections (a) and (b) 
     shall be disclosed in a format that does not reveal 
     individually identifiable information about property owners 
     in accordance with the section 552a of title 5, United States 
     Code.

[[Page H9217]]

       ``(e) Definition of Loss Ratio.--For purposes of this 
     section, the term `loss ratio' means, with respect to the 
     National Flood Insurance Program, the ratio of the amount of 
     claims paid under the Program to the amount of premiums paid 
     under the Program.''.

     SEC. 205. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY 
                   BECAUSE OF REPLACEMENT WITH PRIVATE FLOOD 
                   INSURANCE.

       Section 1306 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4013) is amended by adding at the end the 
     following new subsection:
       ``(e) Refund of Unearned Premiums for Policies Canceled 
     Because of Replacement With Private Flood Insurance.--
       ``(1) Required refund.--Subject to subsection (c), if at 
     any time an insured under a policy for flood insurance 
     coverage for a property that is made available under this 
     title cancels such policy because other duplicate flood 
     insurance coverage for the same property has been obtained 
     from a source other than the National Flood Insurance Program 
     under this title, the Administrator shall refund to the 
     former insured a portion of the premiums paid for the 
     coverage made available under this title, as determined 
     consistent with industry practice according to the portion of 
     the term of the policy that such coverage was in effect, but 
     only if a copy of declarations page of the new policy 
     obtained from a source other than the program under this 
     title is provided to the Administrator.
       ``(2) Effective date of cancellation.--For purposes of this 
     subsection, a cancellation of a policy for coverage made 
     available under the national flood insurance program under 
     this title, for the reason specified in paragraph (1), shall 
     be effective--
       ``(A) on the effective date of the new policy obtained from 
     a source other than the program under this title, if the 
     request for such cancellation was received by the 
     Administrator before the expiration of the 6-month period 
     beginning on the effective date of the new policy; or
       ``(B) on the date of the receipt by the Administrator of 
     the request for cancellation, if the request for such 
     cancellation was received by the Administrator after the 
     expiration of the 6-month period beginning on the effective 
     date of the new policy.
       ``(3) Prohibition of refunds for properties receiving 
     increased cost of compliance claims.--No premium amounts paid 
     for coverage made available under this title may be refunded 
     pursuant to this subsection--
       ``(A) with respect to coverage for any property for which 
     measures have been implemented using amounts received 
     pursuant to a claim under increased cost of compliance 
     coverage made available pursuant to section 1304(b); or
       ``(B) if a claim has been paid or is pending under the 
     policy term for which the refund is sought.''.

     SEC. 206. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study to analyze the feasibility and 
     effectiveness, and problems involved, in reducing flood 
     insurance premiums and eliminating the need for purchase of 
     flood insurance coverage by authorizing owners of residential 
     properties to establish flood damage savings accounts 
     described in subsection (b) in lieu of complying with the 
     mandatory requirements under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) to purchase 
     flood insurance for such properties.
       (b) Flood Damage Savings Account.--A flood damage savings 
     account described in this subsection is a savings account--
       (1) that would be established by an owner of residential 
     property with respect to such property in accordance with 
     requirements established by the Administrator of the Federal 
     Emergency Management Agency; and
       (2) the proceeds of which would be available for use only 
     to cover losses to such properties resulting from flooding, 
     pursuant to adjustment of a claim for such losses in the same 
     manner and according to the same procedures as apply to 
     claims for losses under flood insurance coverage made 
     available under the National Flood Insurance Act of 1968.
       (c) Issues.--Such study shall include an analysis of, and 
     recommendation regarding, each of the following issues:
       (1) Whether authorizing the establishment of such flood 
     damage savings accounts would be effective and efficient in 
     reducing flood insurance premiums, eliminating the need for 
     purchase of flood insurance coverage made available under the 
     National Flood Insurance Program, and reducing risks to the 
     financial safety and soundness of the National Flood 
     Insurance Fund.
       (2) Possible options for structuring such flood damage 
     savings accounts, including--
       (A) what types of institutions could hold such accounts and 
     the benefits and problems with each such type of institution;
       (B) considerations affecting the amounts required to be 
     held in such accounts; and
       (C) options regarding considerations the conditions under 
     which such an account may be terminated.
       (3) The feasibility and effectiveness, and problems 
     involved in, authorizing the Administrator of the Federal 
     Emergency Management Agency to make secondary flood insurance 
     coverage available under the National Flood Insurance Program 
     to cover the portion of flood losses or damages to properties 
     for which such flood damage savings accounts have been 
     established that exceed the amounts held in such accounts.
       (4) The benefits and problems involved in authorizing the 
     establishment of such accounts for non-residential 
     properties.
       (d) Report.--Not later than the expiration of the 12-month 
     period beginning on the date of the enactment of this Act, 
     the Comptroller General shall submit a report to the 
     Committee on Financial Services of the House of 
     Representatives, the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, and the Administrator that sets forth 
     the analysis, conclusions, and recommendations resulting from 
     the study under this section. Such report shall identify 
     elements that should be taken into consideration by the 
     Administrator in designing and carrying out the demonstration 
     program under section 207.

     SEC. 207. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS 
                   ACCOUNTS.

       (a) Plan.--If the Comptroller General of the United States 
     concludes in the report required under section 206 that a 
     demonstration program under this section is feasible and 
     should be considered, then the Administrator of the Federal 
     Emergency Management Agency shall, not later than the 
     expiration of the 12-month period beginning upon the 
     submission of the report under section 206(d), submit to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate a plan and guidelines for a 
     demonstration program, to be carried out by the 
     Administrator, to demonstrate the feasibility and 
     effectiveness of authorizing the establishment of flood 
     damage savings accounts, taking into consideration the 
     analysis, conclusions, and recommendations included in such 
     report.
       (b) Authority.--The Administrator of the Federal Emergency 
     Management Agency shall carry out a program to demonstrate 
     the feasibility and effectiveness of authorizing the 
     establishment of flood damage savings accounts in the manner 
     provided in plan and guidelines for the demonstration program 
     submitted pursuant to subsection (a).
       (c) Scope.--The demonstration program under this section 
     shall provide for the establishment of flood damage savings 
     accounts with respect to not more than 5 percent of the 
     residential properties that have 4 or fewer residences and 
     that are covered by flood insurance coverage made available 
     under the National Flood Insurance Program.
       (d) Timing.--The Administrator shall commence the 
     demonstration program under this section not later than the 
     expiration of the 12-month period beginning upon the 
     submission of the plan and guidelines for the demonstration 
     pursuant to subsection (a).
       (e) Geographical Diversity.--The Administrator shall ensure 
     that properties for which flood damage savings accounts are 
     established under the demonstration are located in diverse 
     geographical areas throughout the United States.
       (f) Report.--Upon the expiration of the 2-year period 
     beginning upon the date of the commencement of the 
     demonstration program under this section, the Administrator 
     shall submit a report to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate describing and 
     assessing the demonstration, and setting forth conclusions 
     and recommendations regarding continuing and expanding the 
     demonstration.
       (g) Feasibility.--The Administrator shall implement this 
     section only after determining that implementation is 
     supported by the Comptroller's conclusions and 
     recommendations contained in the report required under 
     section 206.

                      TITLE III--MAPPING FAIRNESS

     SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING 
                   PREMIUM RATES.

       (a) Estimates of Premium Rates.--Subparagraph (A) of 
     section 1307(a)(1) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4014(a)(1)(A)), as amended by the preceding 
     provisions of this Act, is further amended--
       (1) in clause (ii), by striking ``and'' at the end; and
       (2) by adding at the end the following new clause:
       ``(iv) both the risk identified by the applicable flood 
     insurance rate maps and by other risk assessment data and 
     tools, including risk assessment models and scores from 
     appropriate sources; and''.
       (b) Establishment of Chargeable Premium Rates.--Paragraph 
     (1) of section 1308(b) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4015(b)(1)) is amended by inserting before 
     the semicolon at the end the following: ``, taking into 
     account both the risk identified by the applicable flood 
     insurance rate maps and by other risk assessment data and 
     tools, including risk assessment models and scores from 
     appropriate sources''.
       (c) Effective Date and Regulations.--
       (1) Effective date.--The amendments made by subsections (a) 
     and (b) shall be made, and shall take effect, upon the 
     expiration of the 36-month period beginning on the date of 
     the enactment of this Act.
       (2) Regulations.--The Administrator of the Federal 
     Emergency Management Agency shall issue regulations necessary 
     to implement the amendments made by subsections (a) and (b), 
     which shall identify risk assessment data and tools to be 
     used in identifying flood risk and appropriate sources for 
     risk assessment models and scores to be so used.

[[Page H9218]]

     Such regulations shall be issued not later than the 
     expiration of the 36-month period beginning on the date of 
     the enactment of this Act and shall take effect upon the 
     expiration of such period.

     SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.

       (a) In General.--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) Appeals of Existing Maps.--
       ``(1) Right to appeal.--Subject to paragraph (6), a State 
     or local government, or the owner or lessee of real property, 
     who has made a formal request to the Administrator to update 
     a flood map that the Administrator has denied may at any time 
     appeal such a denial as provided in this subsection.
       ``(2) Basis for appeal.--The basis for appeal under this 
     subsection shall be the possession of knowledge or 
     information that--
       ``(A) the base flood elevation level or designation of any 
     aspect of a flood map is scientifically or technically 
     inaccurate; or
       ``(B) factors exist that mitigate the risk of flooding, 
     including ditches, banks, walls, vegetation, levees, lakes, 
     dams, reservoirs, basin, retention ponds, and other natural 
     or manmade topographical features.
       ``(3) Appeals process.--
       ``(A) Administrative adjudication.--An appeal under this 
     subsection shall be determined by a final adjudication on the 
     record, and after opportunity for an administrative hearing.
       ``(B) Rights upon adverse decision.--If an appeal pursuant 
     to subparagraph (A) does not result in a decision in favor of 
     the State, local government, owner, or lessee, such party may 
     appeal the adverse decision to the Scientific Resolution 
     Panel provided for in section 1363A, which shall recommend a 
     non-binding decision to the Administrator.
       ``(4) Relief.--
       ``(A) Wholly successful appeals.--In the case of a 
     successful appeal resulting in a policyholder's property 
     being removed from a special flood hazard area, such 
     policyholder may cancel the policy at any time within the 
     current policy year, and the Administrator shall provide such 
     policyholder a refund in the amount of any premiums paid for 
     such policy year, plus any premiums paid for flood insurance 
     coverage that the policyholder was required to purchase or 
     maintain during the 2-year period preceding such policy year.
       ``(B) Partially successful appeals.--In the case of any 
     appeal in which mitigating factors were determined to have 
     reduced, but not eliminated, the risk of flooding, the 
     Administrator shall reduce the amount of flood insurance 
     coverage required to be maintained for the property concerned 
     by the ratio of the successful portion of the appeal as 
     compared to the entire appeal. The Administrator shall refund 
     to the policyholder any payments made in excess of the amount 
     necessary for such new coverage amount, effective from the 
     time when the mitigating factor was created or the beginning 
     of the second policy year preceding the determination of the 
     appeal, whichever occurred later.
       ``(C) Additional relief.--The Administrator may provide 
     additional refunds in excess of the amounts specified in 
     subparagraphs (A) and (B) if the Administrator determines 
     that such additional amounts are warranted.
       ``(5) Recovery of costs.--When, incident to any appeal 
     which is successful in whole or part regarding the 
     designation of the base flood elevation or any aspect of the 
     flood map, including elevation or designation of a special 
     flood hazard area, the community, or the owner or lessee of 
     real property, as the case may be, incurs expense in 
     connection with the appeal, including services provided by 
     surveyors, engineers, and scientific experts, the 
     Administrator shall reimburse such individual or community 
     for reasonable expenses to an extent measured by the ratio of 
     the successful portion of the appeal as compared to the 
     entire appeal, but not including legal services, in the 
     effecting of an appeal based on a scientific or technical 
     error on the part of the Federal Emergency Management Agency. 
     No reimbursement shall be made by the Administrator in 
     respect to any fee or expense payment, the payment of which 
     was agreed to be contingent upon the result of the appeal. 
     The Administrator may use such amounts from the National 
     Flood Insurance Fund established under section 1310 as may be 
     necessary to carry out this paragraph.
       ``(6) Inapplicability to community flood maps.--This 
     subsection shall not apply with respect to any flood map that 
     is in effect pursuant to certification under the standards, 
     guidelines, and procedures established pursuant to section 
     100215(m)(1)(B) of the Biggert-Waters Flood Insurance Reform 
     Act of 2012 (42 U.S.C. 4101a(m)(1)(B)).
       ``(7) Guidance.--The Administrator shall issue guidance to 
     implement this subsection, which shall not be subject to the 
     notice and comment requirements under section 553 of title 5, 
     United States Code.''.
       (b) Deadline.--The Administrator of the Federal Emergency 
     Management Agency shall issue the guidance referred to 
     section 1360(k)(7) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4101(k)(7)), as added by the amendment made 
     by subsection (a) of this section, not later than the 
     expiration of the 6-month period beginning on the date of the 
     enactment of this Act.

     SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD 
                   HAZARD AREAS.

       (a) Appeals.--Section 1363 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4104) is amended--
       (1) in subsection (b), by striking the second sentence and 
     inserting the following: ``Any owner or lessee of real 
     property within the community who believes the owner's or 
     lessee's rights to be adversely affected by the 
     Administrator's proposed determination may appeal such 
     determination to the local government no later than 90 days 
     after the date of the second publication.'';
       (2) in subsection (d), by striking ``subsection (e)'' and 
     inserting ``subsection (f)'';
       (3) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and
       (4) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Determination by Administrator in the Absence of 
     Appeals.--If the Administrator has not received any appeals, 
     upon expiration of the 90-day appeal period established under 
     subsection (b) of this section the Administrator's proposed 
     determination shall become final. The community shall be 
     given a reasonable time after the Administrator's final 
     determination in which to adopt local land use and control 
     measures consistent with the Administrator's 
     determination.''.
       (b) Publication.--Subsection (a) of section 1363 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is 
     amended by striking ``in the Federal Register''.
       (c) Inapplicability to Private and Community Flood Maps.--
     Section 1363 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104), as amended by the preceding provisions of this 
     section, is further amended by adding at the end the 
     following new subsection:
       ``(i) Inapplicability to Community Flood Maps.--This 
     section shall not apply with respect to any flood map that is 
     in effect pursuant to certification under the standards, 
     guidelines, and procedures established pursuant to section 
     100215(m)(1) of the Biggert-Waters Flood Insurance Reform Act 
     of 2012 (42 U.S.C. 4101a(m)(1)), which shall include 
     procedures for providing notification and appeal rights to 
     individuals within the communities of the proposed flood 
     elevation determinations.''.

     SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.

       Paragraph (1) of section 100216(d) of the Biggert-Waters 
     Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is 
     amended--
       (1) in subparagraph (B), by inserting ``maximum'' before 
     ``30-day period''; and
       (2) in subparagraph (C), by inserting ``maximum'' before 
     ``30-day period''.

     SEC. 305. SHARING AND USE OF MAPS AND DATA.

       Subsection (b) of section 100216 of the Biggert-Waters 
     Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; and'' ; and
       (C) by adding at the end the following new subparagraph:
       ``(D) consult and coordinate with the Department of 
     Defense, the United States Geological Survey, and the 
     National Oceanic and Atmospheric Administration for the 
     purpose of obtaining the most-up-to-date maps and other 
     information of such agencies, including information on 
     topography, water flow, and any other issues, relevant to 
     mapping for flood insurance purposes.''; and
       (2) in paragraph (3)--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (C) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) any other information relevant to mapping for flood 
     insurance purposes obtained pursuant to paragraph (1)(D); 
     and''.

     SEC. 306. COMMUNITY FLOOD MAPS.

       (a) Technical Mapping Advisory Council.--Section 100215 of 
     the Biggert-Waters Flood Insurance Reform Act of 2012 (42 
     U.S.C. 4101a) is amended--
       (1) in subsection (c)--
       (A) in paragraph (5)(B), by striking ``and'' at the end;
       (B) by redesignating paragraph (6) as paragraph (9); and
       (C) by inserting after paragraph (5) the following new 
     paragraphs:
       ``(6) recommend to the Administrator methods or actions to 
     make the flood mapping processes more efficient;
       ``(7) recommend to the Administrator methods or actions to 
     minimize any cost, data, and paperwork requirements of the 
     flood mapping processes;
       ``(8) assist communities, and in particular smaller 
     communities, in locating the resources required to 
     participate in the development of flood elevations and flood 
     hazard area designations; and''; and
       (2) by adding at the end the following new subsection:
       ``(m) Community Flood Maps.--
       ``(1) Standards and procedures.--In addition to the other 
     duties of the Council under this section, not later than the 
     expiration of the 12-month period beginning on the date of 
     the enactment of this subsection, the Council shall recommend 
     to the Administrator standards and requirements for chief 
     executive officers, or entities designated by chief executive 
     officers, of States and communities participating in the 
     National Flood Insurance Program to use in mapping flood 
     hazards located in States and communities that choose to 
     develop alternative maps to

[[Page H9219]]

     the flood insurance rate maps developed by the Agency. The 
     recommended standards and requirements shall include 
     procedures for providing notification and appeal rights to 
     individuals within the communities of the proposed flood 
     elevation determinations.
       ``(2) Exemption from rulemaking.--Until such time as the 
     Administrator promulgates regulations implementing paragraph 
     (1) of this subsection, the Administrator may, 
     notwithstanding any other provision of law, adopt policies 
     and procedures necessary to implement such paragraphs without 
     undergoing notice and comment rulemaking and without 
     conducting regulatory analyses otherwise required by statute, 
     regulation, or executive order.''.
       (b) FEMA Identification of Flood-prone Areas.--Subsection 
     (a) of section 1360 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4101(a)) is amended--
       (1) in paragraph (2), by striking the period at the end and 
     inserting ``; and'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A), and (B), respectively, and realigning such 
     subparagraphs so as to be indented 4 ems from the left 
     margin;
       (3) by striking ``is authorized to consult'' and inserting 
     the following: ``is authorized--
       ``(1) to consult'';
       (4) by adding at the end the following new paragraph:
       ``(2) to receive proposed alternative maps from communities 
     developed pursuant to standards and requirements recommended 
     by the Technical Mapping Advisory Council, as required by 
     section 100215(m) of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (42 U.S.C. 4101a(m)) and adopted by the 
     Administrator as required by section 100216(c)(3) of such Act 
     (42 U.S.C. 4101b(c)(3)), so that the Administrator may--
       ``(A) publish information with respect to all flood plain 
     areas, including coastal areas located in the United States, 
     which have special flood hazards, and
       ``(B) establish or update flood-risk zone data in all such 
     areas, and make estimates with respect to the rates of 
     probable flood caused loss for the various flood risk zones 
     for each of these areas until the date specified in section 
     1319.''.
       (c) National Flood Mapping Program.--Section 100216 of the 
     Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
     4101b) is amended--
       (1) in subsection (a), by inserting ``prepared by the 
     Administrator, or by a community pursuant to section 
     1360(a)(2) of the National Flood Insurance Act of 1968,'' 
     after ``Program rate maps''; and
       (2) in subsection (c)--
       (A) in paragraph (1)(B), by striking ``and'' at the end;
       (B) in paragraph (2)(C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(3) establish and adopt standards and requirements for 
     development by States and communities of alternative flood 
     insurance rate maps to be submitted to the Administrator 
     pursuant to section 1360(a)(2) of the National Flood 
     Insurance Act of 1968, taking into consideration the 
     recommendations of the Technical Mapping Advisory Council 
     made pursuant to section 100215(m) of this Act (42 U.S.C. 
     4101a(m)); and
       ``(4) in the case of proposed alternative maps received by 
     the Administrator pursuant to such section 1360(a)(2), not 
     later than the expiration of the 6-month period beginning 
     upon receipt of such proposed alternative maps--
       ``(A) determine whether such maps were developed in 
     accordance with the standards and requirements adopted 
     pursuant to paragraph (3) of this subsection; and
       ``(B) approve or disapprove such proposed maps for use 
     under National Flood Insurance Program.''.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

     SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM 
                   CREDITS TO MAXIMUM NUMBER OF COMMUNITIES 
                   PRACTICABLE.

       Subsection (b) of section 1315 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended--
       (1) in paragraph (2), by striking ``may'' and inserting 
     ``shall''; and
       (2) in paragraph (3), by inserting ``, and the 
     Administrator shall provide credits to the maximum number of 
     communities practicable'' after ``under this program''.

     SEC. 402. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED 
                   AREAS.

       (a) In General.--Section 1361 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding 
     at the end the following new subsection:
       ``(e) Community Accountability for Repetitively Damaged 
     Areas.--
       ``(1) In general.--The Administrator shall, by regulation, 
     require any covered community (as such term is defined in 
     paragraph (5))--
       ``(A) to identify the areas within the community where 
     properties described in paragraph (5)(B) or flood-damaged 
     facilities are located to determine areas repeatedly damaged 
     by floods and to assess, with assistance from the 
     Administrator, the continuing risks to such areas;
       ``(B) to develop a community-specific plan for mitigating 
     continuing flood risks to such repetitively flooded areas and 
     to submit such plan and plan updates to the Administrator at 
     appropriate intervals;
       ``(C) to implement such plans;
       ``(D) to make such plan, plan updates, and reports on 
     progress in reducing flood risk available to the public, 
     subject to section 552a of title 5, United States Code.
       ``(2) Incorporation into existing plans.--Plans developed 
     pursuant to paragraph (1) may be incorporated into mitigation 
     plans developed under section 1366 of this Act (42 U.S.C. 
     4104c) and hazard mitigation plans developed under section 
     322 of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5165).
       ``(3) Assistance to communities.--
       ``(A) Data.--To assist communities in preparation of plans 
     required under paragraph (1), the Administrator shall, upon 
     request, provide covered communities with appropriate data 
     regarding the property addresses and dates of claims 
     associated with insured properties within the community.
       ``(B) Mitigation grants.--In making determinations 
     regarding financial assistance under the authorities of this 
     Act, the Administrator may consider the extent to which a 
     community has complied with this subsection and is working to 
     remedy problems with addressing repeatedly flooded areas.
       ``(4) Sanctions.--
       ``(A) In general.--The Administrator shall, by regulations 
     issued in accordance with the procedures established under 
     section 553 of title 5, United States Code, regarding 
     substantive rules, provide appropriate sanctions for covered 
     communities that fail to comply with the requirements under 
     this subsection or to make sufficient progress in reducing 
     the flood risks to areas in the community that are repeatedly 
     damaged by floods.
       ``(B) Notice.--Before imposing any sanction pursuant to 
     this paragraph, the Administrator shall provide the covered 
     community involved with notice of the non-compliance that 
     could result in the imposition of sanctions, which shall 
     include recommendations for actions to bring the covered 
     community into compliance.
       ``(C) Considerations.--In determining appropriate sanctions 
     to impose under this paragraph, the Administrator shall 
     consider the resources available to the covered community 
     involved, including Federal funding, the portion of the 
     covered community that lies within an area having special 
     flood hazards, and other factors that make it difficult for 
     the covered community to conduct mitigation activities for 
     existing flood-prone structures.
       ``(5) Covered community.--For purposes of this subsection, 
     the term `covered community' means a community--
       ``(A) that is participating, pursuant to section 1315, in 
     the national flood insurance program; and
       ``(B) within which are located--
       ``(i) 50 or more repetitive loss structures for each of 
     which, during any 10-year period, two or more claims for 
     payments under flood insurance coverage have been made with a 
     cumulative amount exceeding $1,000;
       ``(ii) 5 or more severe repetitive loss structures (as such 
     term is defined in section 1366(h)) for which mitigation 
     activities meeting the standards for approval under section 
     1366(c)(2)(A) have not been conducted; or
       ``(iii) a public facility or a private nonprofit facility 
     (as such terms are as defined in section 102 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122)), that has received assistance for repair, 
     restoration, reconstruction, or replacement under section 406 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5172) in connection with more than 
     one flooding event in the most recent 10-year period.
       ``(6) Repetitive-loss structure.--For purposes of this 
     subsection, the term `repetitive loss structure' has the 
     meaning given such term in section 1370 (42 U.S.C. 4121).
       ``(7) Reports to congress.--Not later than the expiration 
     of the 6-year period beginning upon the date of the enactment 
     of this subsection, and not less than every 2 years 
     thereafter, the Administrator shall submit a report to the 
     Congress regarding the progress in implementing plans 
     developed pursuant to paragraph (1)(B).''.
       (b) Regulations.--The Administrator of the Federal 
     Emergency Management Agency shall issue regulations necessary 
     to carry out subsection (e) of section 1361 of the National 
     Flood Insurance Act of 1968, as added by the amendment made 
     by subsection (a) of this section, not later than the 
     expiration of the 12-month period that begins on the date of 
     the enactment of this Act.

     SEC. 403. INCREASED COST OF COMPLIANCE COVERAGE.

       (a) Coverage of Properties at High Risk of Future Flood 
     Damage.--Subsection (b) of section 1304 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
       (1) in paragraph (4), by redesignating subparagraphs (A) 
     through (D) as clauses (i) through (iv), respectively, and 
     realigning such clauses, as so redesignated, so as to be 
     indented 6 ems from the left margin;
       (2) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and realigning 
     such subparagraphs, as so redesignated, so as to be indented 
     4 ems from the left margin;
       (3) by striking the subsection designation and all that 
     follows through ``The national'' and inserting the following:
       ``(b) Additional Coverage for Compliance With Land Use and 
     Control Measures.--

[[Page H9220]]

       ``(1) Authority; eligible properties.--The national'';
       (4) in subparagraph (C) (as so redesignated by paragraph 
     (2) of this subsection), by striking ``Fund'' and all that 
     follows and inserting ``Fund to require the implementation of 
     such measures;'';
       (5) in subparagraph (D)(iv) (as so redesignated by 
     paragraphs (1) and (2) of this subsection), by striking the 
     period at the end and inserting a semicolon; and
       (6) by adding at the end the following new subparagraphs:
       ``(E) properties that have been identified by the 
     Administrator, or by a community in accordance with such 
     requirements as the Administrator shall establish, as at a 
     high risk of future flood damage; and
       ``(F) properties that are located within an area identified 
     pursuant to section 1361(e)(1)(A) (42 U.S.C. 4102(e)(1)(A)) 
     by a covered community (as such term is defined in paragraph 
     (3) of such section 1361(e)).''.
       (b) Coverage Amount.--Section 1304(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
       (1) in paragraph (1) (as so designated by subsection (a)(3) 
     of this section), by striking the last sentence (relating to 
     a surcharge); and
       (2) by adding at the end the following new paragraph:
       ``(2) Coverage amount.--
       ``(A) Primary coverage.--Each policy for flood insurance 
     coverage made available under this title shall provide 
     coverage under this subsection having an aggregate liability 
     for any single property of $30,000.
       ``(B) Enhanced coverage.--The Administrator shall make 
     additional coverage available under this subsection, in 
     excess of the limit specified in subparagraph (A), having an 
     aggregate liability for any single property of up to 
     $60,000.''.
       (c) Amount of Surcharge.--Subsection (b) of section 1304 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), 
     as amended by the preceding provisions of this section, is 
     further amended by adding at the end the following new 
     paragraph:
       ``(3) Surcharge for coverage.--
       ``(A) Primary coverage.--The Administrator shall impose a 
     surcharge on each insured of such amount per policy as the 
     Administrator determines is appropriate to provide cost of 
     compliance coverage in accordance with paragraph (2)(A).
       ``(B) Enhanced coverage.--For each flood policy for flood 
     insurance coverage under this title under which additional 
     cost of compliance coverage is provided pursuant to paragraph 
     (2)(B), the Administrator shall impose a surcharge, in 
     addition to the surcharge under subparagraph (A) of this 
     paragraph, in such amount as the Administrator determines is 
     appropriate for the amount of such coverage provided.''.
       (d) Use of Certain Materials.--Subsection (b) of section 
     1304 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4011(b)), as amended by the preceding provisions of this 
     section, is further amended by adding at the end the 
     following new paragraph:
       ``(4) Use of certain materials.--The Administrator shall 
     require that any measures implemented using amounts made 
     available from coverage provided pursuant to this subsection 
     be carried out using materials, identified by the 
     Administrator, that minimize the impact of flooding on the 
     usability of the covered property and reduce the duration 
     that flooding renders the property unusable or 
     uninhabitable.''.
       (e) Continued Flood Insurance Requirement.--Subsection (b) 
     of section 1304 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4011(b)), as amended by the preceding provisions 
     of this section, is further amended by adding at the end the 
     following new paragraph:
       ``(5) Continued flood insurance requirement.--The 
     Administrator may require, as a condition of providing cost 
     of compliance coverage under this subsection for a property, 
     that the owner of the property enter into such binding 
     agreements as the Administrator considers necessary to ensure 
     that the owner of the property (and any subsequent owners) 
     will maintain flood insurance coverage under this title for 
     the property in such amount, and at all times during a period 
     having such duration, as the Administrator considers 
     appropriate to carry out the purposes of this subsection.''.

                       TITLE V--PROGRAM INTEGRITY

     SEC. 501. INDEPENDENT ACTUARIAL REVIEW.

       Section 1309 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4016) is amended by adding at the end the 
     following new subsection:
       ``(e) Independent Actuarial Review.--
       ``(1) Fiduciary responsibility.--The Administrator has a 
     responsibility to ensure that the National Flood Insurance 
     Program remains financially sound. Pursuant to this 
     responsibility, the Administrator shall from time to time 
     review and eliminate nonessential costs and positions within 
     the Program, unless otherwise authorized or required by law, 
     as the Administrator determines to be necessary.
       ``(2) Annual independent actuarial study.--The 
     Administrator shall provide for an independent actuarial 
     study of the National Flood Insurance Program to be conducted 
     annually, which shall analyze the financial position of the 
     program based on the long-term estimated losses of the 
     program. The Administrator shall submit a report (together 
     with the independent actuarial study) annually to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate describing the results of such 
     study, including a determination of whether the Program has 
     collected revenue sufficient to cover the administrative 
     expenses of carrying out the flood insurance program, which 
     are reflected in the risk premium rates, cost of capital, all 
     other costs associated with the transfer of risks, and 
     expected claims payments during the reporting period, and an 
     overall assessment of the financial status of the Program.
       ``(3) Determination of actuarial budget deficit.--
       ``(A) Requirement.--Within the report submitted under 
     paragraph (2), the Administrator shall issue a determination 
     of whether there exists an actuarial budget deficit for the 
     Program for the year covered in the report. The report shall 
     recommend any changes to the Program, if necessary, to ensure 
     that the program remains financially sound.
       ``(B) Basis of determination.--The determination required 
     by subparagraph (A) shall be based solely upon whether the 
     portion of premiums estimated and collected by the Program 
     during the reporting period is sufficient to cover the 
     administrative expenses of carrying out the flood insurance 
     program, which are reflected in the risk premium rates, cost 
     of capital, all other costs associated with the transfer of 
     risk, and expected claims payments for the reporting period.
       ``(4) Quarterly reports.--During each fiscal year, on a 
     calendar quarterly basis, the Secretary shall cause to be 
     published in the Federal Register or comparable method, with 
     notice to the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, information which shall 
     specify--
       ``(A) the cumulative volume of policies that have been 
     underwritten under the National Flood Insurance Program 
     during such fiscal year through the end of the quarter for 
     which the report is submitted;
       ``(B) the types of policies insured, categorized by risk;
       ``(C) any significant changes between actual and projected 
     claim activity;
       ``(D) projected versus actual loss rates;
       ``(E) the cumulative number of currently insured 
     repetitive-loss properties, severe repetitive-loss 
     properties, and extreme repetitive-loss properties that have 
     been identified during such fiscal year through the end of 
     the quarter for which the report is submitted;
       ``(F) the cumulative number of properties that have 
     undergone mitigation assistance, through the National Flood 
     Insurance Program, during such fiscal year through the end of 
     the quarter for which the report is submitted; and
       ``(G) the number and location, by State or territory, of 
     each policyholder that has been identified for such fiscal 
     year as an eligible household for purposes of the flood 
     insurance affordability program under section 1326.
     The first quarterly report under this paragraph shall be 
     submitted on the last day of the first quarter of fiscal year 
     2018, or on the last day of the first full calendar quarter 
     following the enactment of the 21st Century Flood Reform Act, 
     whichever occurs later.''.

     SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE 
                   AFFORDABILITY SURCHARGE.

       (a) In General.--Section 1308A of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4015a) is amended--
       (1) in subsection (a), by striking the first sentence and 
     inserting the following: ``The Administrator shall impose and 
     collect a non-refundable annual surcharge, in the amount 
     provided in subsection (b), on all policies for flood 
     insurance coverage under the National Flood Insurance Program 
     that are newly issued or renewed after the date of the 
     enactment of this section.''; and
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Amount.--The amount of the surcharge under subsection 
     (a) shall be $40, except as follows:
       ``(1) Non-primary residences eligible for prp.--The amount 
     of the surcharge under subsection (a) shall be $125 in the 
     case of in the case of a policy for any property that is--
       ``(A) a residential property that is not the primary 
     residence of an individual, and
       ``(B) eligible for preferred risk rate method premiums.
       ``(2) Non-residential properties and non-primary residences 
     not eligible for prp.--The amount of the surcharge under 
     subsection (a) shall be $275 in case of in the case of a 
     policy for any property that is--
       ``(A) a non-residential property; or
       ``(B) a residential property that is--
       ``(i) not the primary residence of an individual; and
       ``(ii) not eligible for preferred risk rate method 
     premiums.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to policies for flood insurance 
     coverage under the National Flood Insurance Act of 1968 that 
     are newly issued or renewed after the expiration of the 12-
     month period beginning on the date of the enactment of this 
     Act.

     SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.

       Section 1310A of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4017A) is amended--
       (1) in subsection (c)(2)(D), by inserting before the period 
     at the end the following: ``,

[[Page H9221]]

     including any provisions relating to chargeable premium rates 
     or annual increases of such rates'';
       (2) in subsection (c)(3), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) Parity.--In exercising the authority granted under 
     paragraph (1) to increase premiums, the Administrator shall 
     institute a single annual, uniform rate of assessment for all 
     individual policyholders.''; and
       (3) in subsection (d)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) In general.--Beginning in fiscal year 2018 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved--
       ``(A) in each fiscal year the Administrator shall place in 
     the Reserve Fund an amount equal to not less than 7.5 percent 
     of the reserve ratio required under subsection (b); and
       ``(B) if in any given fiscal year the Administrator fails 
     to comply with subparagraph (A), for the following fiscal 
     year the Administrator shall increase the rate of the annual 
     assessment pursuant to subsection (c)(3)(A) by at least one 
     percentage point over the rate of the annual assessment 
     pursuant to subsection (c)(3)(A) in effect on the first day 
     of such given fiscal year.'';
       (B) in paragraph (2), by inserting before the period at the 
     end the following: ``nor to increase assessments pursuant to 
     paragraph (1)(B)''; and
       (C) in paragraph (3), by inserting before the period at the 
     end the following: ``and paragraph (1)(B) shall apply until 
     the fiscal year in which the ratio required under subsection 
     (b) is achieved''.

     SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS 
                   PROPERTIES.

       (a) Definition.--Section 1370 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4121), as amended by the 
     preceding provisions of this Act, is further amended--
       (1) in subsection (a)--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8) through (18) as 
     paragraphs (7) through (17), respectively; and
       (2) by adding at the end the following new subsection:
       ``(d) Multiple-Loss Properties.--
       ``(1) Definitions.--As used in this title:
       ``(A) Multiple-loss property.--The term `multiple-loss 
     property' means any property that is a repetitive-loss 
     property, a severe repetitive-loss property, or an extreme 
     repetitive-loss property.
       ``(B) Qualified claims payment.--The term `qualified claims 
     payment' means a claims payment of any amount made under 
     flood insurance coverage under this title in connection with 
     loss resulting from a flood event that occurred after the 
     date of the enactment of the 21st Century Flood Reform Act, 
     but not including any claim that occurred before a structure 
     was made compliant with State and local floodplain management 
     requirements.
       ``(C) Repetitive-loss property.--The term `repetitive-loss 
     property' means a structure that has incurred flood damage 
     for which two or more separate claims payments of any amount 
     have been made under flood insurance coverage under this 
     title.
       ``(D) Severe repetitive-loss property.--The term `severe 
     repetitive-loss property' means a structure that has incurred 
     flood damage for which--
       ``(i) 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) at least 2 separate claims payments have been made 
     under flood insurance coverage under this title, with the 
     cumulative amount of such claims payments exceeding the value 
     of the structure.
       ``(E) Extreme repetitive-loss property.--The term `extreme 
     repetitive-loss property' means a structure that has incurred 
     flood damage for which at least 2 separate claims have been 
     made under flood insurance coverage under this title, with 
     the cumulative amount of such claims payments exceeding 150 
     percent of the maximum coverage amount available for the 
     structure.
       ``(2) Treatment of claims before compliance with state and 
     local requirements.--The Administrator shall not consider 
     claims that occurred before a structure was made compliant 
     with State and local floodplain management requirements for 
     purposes of determining a structure's status as a multiple-
     loss property.''.
       (b) Premium Adjustment to Reflect Current Flood Risk.--
       (1) In general.--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:
       ``(p) Premium Adjustment to Reflect Current Flood Risk.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Administrator shall rate a property for which two or more 
     qualified claims payments have been made and that is charged 
     a risk premium rate estimated under section 1307(a)(1) (42 
     U.S.C. 4014(a)(1)) based on the current risk of flood 
     reflected in the flood insurance rate map in effect at the 
     time of rating.
       ``(2) Adjustment for existing policies.--Notwithstanding 
     subsection (e) of this section, for policies for flood 
     insurance under this title in force on the date of the 
     enactment of this Act for properties described in paragraph 
     (1)--
       ``(A) for any property for which two qualified claims 
     payments have been made, the Administrator shall increase 
     risk premium rates by 10 percent each year until such rates 
     comply with paragraph (1) of this subsection; and
       ``(B) for any property for which three or more qualified 
     claims payments have been made, the Administrator shall 
     increase risk premium rates by 15 percent each year until 
     such rates comply with paragraph (1) of this subsection.''.
       (2) Conforming amendment.--Section 1307(g)(2) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)(2)) 
     is amended by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) in connection with a multiple-loss property.''.
       (c) Pre-FIRM Multiple-loss Property.--
       (1) Termination of subsidy.--Section 1307 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended--
       (A) in subsection (a)(2)--
       (i) by striking subparagraph (C) and inserting the 
     following new subparagraph:
       ``(C) any extreme repetitive-loss property;'';
       (ii) in subparagraph (D), by striking ``or'';
       (iii) in subparagraph (E)--

       (I) in clause (i), by striking ``fair''; and
       (II) in clause (ii)--

       (aa) by striking ``fair''; and
       (bb) by striking ``and'' and inserting ``or''; and
       (iv) by adding at the end the following new subparagraph:
       ``(F) any property for which two or more qualified claims 
     payments have been made; and''; and
       (B) by striking subsection (h).
       (2) Annual limitation on premium increases.--Subsection (e) 
     of section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) in paragraph (4)--
       (i) by striking ``the chargeable risk'' and inserting 
     ``notwithstanding paragraph (5), the chargeable risk''; and
       (ii) by striking ``described under paragraph (3).'' and 
     inserting ``estimated under section 1307(a)(1); and''; and
       (C) by adding at the end the following new paragraph:
       ``(5) the chargeable risk premium rates for flood insurance 
     under this title for any properties described in subparagraph 
     (F) of section 1307(a)(2) shall be increased--
       ``(A) for any property for which two qualified claims 
     payments have been made, by 10 percent each year, until the 
     average risk premium rate for such property is equal to the 
     average of the risk premium rates for properties estimated 
     under section 1307(a)(1); and
       ``(B) for any property for which three or more qualified 
     claims payments have been made, by 15 percent each year, 
     until the average risk premium rate for such property is 
     equal to the average of the risk premium rates for properties 
     estimated under section 1307(a)(1).''.
       (d) Minimum Deductibles for Certain Multiple-loss 
     Properties.--
       (1) Clerical amendment.--The National Flood Insurance Act 
     of 1968, as amended by the preceding provisions of this Act, 
     is further amended--
       (A) by transferring subsection (b) of section 1312 (42 
     U.S.C. 4019(b)) to section 1306 (42 U.S.C. 4013), inserting 
     such subsection at the end of such section, and redesignating 
     such subsection as subsection (f); and
       (B) in section 1312 (42 U.S.C. 4019), by redesignating 
     subsection (c) as subsection (b).
       (2) Certain multiple-loss properties.--Subsection (f) of 
     section 1306 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4013(e)), as so transferred and redesignated by 
     paragraph (1) of this subsection, is amended adding at the 
     end the following new paragraph:
       ``(3) Certain multiple-loss properties.--Notwithstanding 
     paragraph (1) or (2), the minimum annual deductible for 
     damage to any severe repetitive-loss property or extreme 
     repetitive-loss property shall be not less than $5,000.''.
       (e) Claim History Validation.--Beginning not later than the 
     expiration of the 180-day period beginning on the date of the 
     enactment of this Act, the Administrator of the Federal 
     Emergency Management Agency shall undertake efforts to 
     validate the reasonable accuracy of claim history data 
     maintained pursuant to the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.).
       (f) Increased Cost of Compliance Coverage.--Subparagraph 
     (A) of section 1304(b)(1) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4011(b)(1)(A)), as amended by the 
     preceding provisions of this Act, is further amended by 
     striking ``repetitive loss structures'' and inserting 
     ``multiple-loss properties''.
       (g) Availability of Insurance for Multiple-Loss 
     Properties.--
       (1) In general.--The National Flood Insurance Act of 1968 
     is amended by inserting after section 1304 (42 U.S.C. 4011) 
     the following new section:

     ``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS 
                   PROPERTIES.

       ``(a) Date and Information Identifying Current Flood 
     Risk.--The Administrator may provide flood insurance coverage 
     under this title for a multiple-loss property only if

[[Page H9222]]

     the owner of the property submits to the Administrator such 
     data and information necessary to determine such property's 
     current risk of flood, as determined by the Administrator, at 
     the time of application for or renewal of such coverage.
       ``(b) Refusal To Mitigate.--
       ``(1) In general.--Except as provided pursuant to paragraph 
     (2), the Administrator may not make flood insurance coverage 
     available under this title for any extreme repetitive-loss 
     property for which a claim payment for flood loss was made 
     under coverage made available under this title that occurred 
     after the date of enactment of the 21st Century Flood Reform 
     Act if the property owner refuses an offer of mitigation for 
     the property under section 1366(a)(2) (42 U.S.C. 
     4104c(a)(2)).
       ``(2) Exceptions; appeals.--The Director shall develop 
     guidance to provide appropriate exceptions to the prohibition 
     under paragraph (1) and to allow for appeals to such 
     prohibition.''.
       (2) Effective date.--Section 1304A of the National Flood 
     Insurance Act of 1968, as added by paragraph (1) of this 
     subsection, shall apply beginning upon the expiration of the 
     12-month period beginning on the date of the enactment of 
     this Act.
       (h) Rates for Properties Newly Mapped Into Areas With 
     Special Flood Hazards.--Subsection (i) of section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(i)) is 
     amended--
       (1) by striking the subsection designation and all that 
     follows through ``Notwithstanding'' and inserting the 
     following:
       ``(i) Rates for Properties Newly Mapped Into Areas With 
     Special Flood Hazards.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     notwithstanding'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and moving the left 
     margins of such subparagraphs, as so redesignated, and the 
     matter following subparagraph (B), 2 ems to the right; and
       (3) by adding at the end the following new paragraph:
       ``(2) Inapplicability to multiple-loss properties.--
     Paragraph (1) shall not apply to multiple-loss properties.''.
       (i) Clear Communication of Multiple-loss Property Status.--
       (1) In general.--Subsection (l) of section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), as 
     amended by the preceding provisions of this Act, is further 
     amended by adding at the end the following new paragraph:
       ``(2) Multiple-loss properties.--Pursuant to paragraph (1), 
     the Administrator shall clearly communicate to all 
     policyholders for multiple-loss properties before the 
     effectiveness of any such new or renewed coverage and after 
     each qualified claims payment for the property--
       ``(A) the availability of flood mitigation assistance under 
     section 1366; and
       ``(B) the effect on the premium rates charged for such a 
     property of filing any further claims under a flood insurance 
     policy with respect to that property.''.
       (j) Mitigation Assistance Program.--Section 1366 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by inserting 
     after the period at the end of the first sentence the 
     following: ``Priority under the program shall be given to 
     providing assistance with respect to multiple-loss 
     properties.'';
       (B) in paragraph (1), by inserting ``and'' after the 
     semicolon at the end; and
       (C) by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) to property owners, in coordination with the State 
     and community, in the form of direct grants under this 
     section for carrying out mitigation activities that reduce 
     flood damage to extreme repetitive-loss properties.
     The Administrator shall take such actions as may be necessary 
     to ensure that grants under this subsection are provided in a 
     manner that is consistent with the delivery of coverage for 
     increased cost of compliance provided under section 
     1304(b).'';
       (2) in subsection (c)(2)(A)(ii), by striking ``severe 
     repetitive loss structures'' and inserting ``multiple-loss 
     properties'';
       (3) in subsection (d)--
       (A) in paragraph (1)--
       (i) by striking ``Severe repetitive loss structures'' and 
     inserting ``Extreme repetitive-loss properties''; and
       (ii) by striking ``severe repetitive loss structures'' and 
     inserting ``extreme repetitive-loss properties'';
       (B) in paragraph (2)--
       (i) by striking ``Repetitive loss structures'' and 
     inserting ``Severe repetitive-loss properties'';
       (ii) by striking ``repetitive loss structures'' and 
     inserting ``severe repetitive-loss properties''; and
       (iii) by striking ``90 percent'' and inserting ``100 
     percent'';
       (C) by redesignating paragraph (3) as paragraph (4); and
       (D) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Repetitive-loss property.--In the case of mitigation 
     activities to repetitive-loss properties, in an amount up to 
     100 percent of all eligible costs.'';
       (4) in subsection (h)--
       (A) by striking paragraphs (2) and (3);
       (B) by striking the subsection designation and all that 
     follows through ``shall apply:''; and
       (C) in paragraph (1)--
       (i) by striking ``Community'' and inserting ``Definition of 
     Community'';
       (ii) by striking ``The'' and inserting ``For purposes of 
     this section, the'';
       (iii) by redesignating such paragraph as subsection (j);
       (iv) in subparagraph (B), by striking ``subparagraph (A)'' 
     and inserting ``paragraph (1)'';
       (v) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively;
       (vi) in paragraph (1), as so redesignated by clause (v) of 
     this subparagraph, by redesignating clauses (i) and (ii) as 
     subparagraphs (A) and (B), respectively (and moving the 
     margins two ems to the left); and
       (vii) by moving the left margins of subsection (j) (as so 
     redesignated) and paragraphs (1) and (2), all as so 
     redesignated, two ems to the left; and
       (5) by inserting after subsection (g) the following new 
     subsections:
       ``(h) Alignment With Increased Cost of Compliance.--
     Notwithstanding any provision of law, any funds appropriated 
     for assistance under this title may be transferred to the 
     National Flood Insurance Fund established under section 1310 
     (42 U.S.C. 4017) for the payment of claims to enable the 
     Administrator to deliver grants under subsection (a)(2) of 
     this section to align with the delivery of coverage for 
     increased cost of compliance for extreme repetitive-loss 
     properties.
       ``(i) Funding.--
       ``(1) Authorization of appropriations.--Notwithstanding any 
     other provision of law, assistance provided under this 
     section shall be funded by--
       ``(A) $225,000,000 in each fiscal year, subject to 
     offsetting collections, through risk premium rates for flood 
     insurance coverage under this title, and shall be available 
     subject to section 1310(f);
       ``(B) any penalties collected under section 102(f) the 
     Flood Disaster Protect Act of 1973 (42 U.S.C. 4012a(f); and
       ``(C) any amounts recaptured under subsection (e) of this 
     section.
     The Administrator may not use more than 5 percent of amounts 
     made available under this subsection to cover salaries, 
     expenses, and other administrative costs incurred by the 
     Administrator to make grants and provide assistance under 
     this section.
       ``(2) Availability.--Amounts appropriated pursuant to this 
     subsection for any fiscal year may remain available for 
     obligation until expended.''.
       (k) Repeal.--Section 1367 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4104d) is repealed.

     SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH 
                   EXCESSIVE LIFETIME CLAIMS.

       Section 1305 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012) is amended by adding at the end the 
     following new subsection:
       ``(e) Prohibition of Coverage for Properties With Excessive 
     Lifetime Claims.--The Administrator may not make available 
     any new or renewed coverage for flood insurance under this 
     title for any multiple-loss property for which the aggregate 
     amount in claims payments that have been made after the 
     expiration of the 18-month period beginning on the date of 
     the enactment of this subsection under flood insurance 
     coverage under this title exceeds three times the amount of 
     the replacement value of the structure.''.

     SEC. 507. PAY FOR PERFORMANCE AND STREAMLINING COSTS AND 
                   REIMBURSEMENT.

        Section 1345 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4081), as amended by the preceding provisions of 
     this Act, is further amended by adding at the end the 
     following subsection:
       ``(g) Write Your Own Allowance and Program Savings.--
       ``(1) Allowance rate.--
       ``(A) Limitation.--The allowance paid to companies 
     participating in the Write Your Own Program (as such term is 
     defined in section 1370 (42 U.S.C. 4004)) with respect to a 
     policy for flood insurance coverage made available under this 
     title shall not be greater than 27.9 percent of the 
     chargeable premium for such coverage.
       ``(B) Inapplicability.--Subparagraph (A) shall not apply to 
     actual and necessary costs related to section 1312(a) (42 
     U.S.C, 4019(a)), or to payments deemed necessary by the 
     Administrator.
       ``(C) Implementation.--The limitation in subparagraph (A) 
     shall be imposed by equal reductions over the 3-year period 
     beginning on the date of the enactment of this subsection.
       ``(2) Program savings.--
       ``(A) Implementation.--The Administrator, within three 
     years of the date of the enactment of this Act, shall reduce 
     the costs and unnecessary burdens for the companies 
     participating in the Write Your Own program by at least half 
     of the amount by which the limitation under paragraph (1)(A) 
     reduced costs compared to the costs as of the date of the 
     enactment of this subsection.
       ``(B) Consideration of savings.--In meeting the requirement 
     of subparagraph (A), the Administrator shall consider savings 
     including--
       ``(i) indirect payments by the Administrator of premium;
       ``(ii) eliminating unnecessary communications requirements;
       ``(iii) reducing the frequency of National Flood Insurance 
     Program changes;

[[Page H9223]]

       ``(iv) simplifying the flood rating system; and
       ``(v) other ways of streamlining the Program to reduce 
     costs while maintaining customer service and distribution.''.

     SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

       (a) Penalties.--Paragraph (5) of section 102(f) of the 
     Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) 
     is amended by striking ``$2,000'' and inserting ``$5,000''.
       (b) Insured Depository Institutions.--Subparagraph (A) of 
     section 10(i)(2) of the Federal Deposit Insurance Act (12 
     U.S.C. 1820(i)(2)(A)) is amended by striking ``date of 
     enactment of the Riegle Community Development and Regulatory 
     Improvement Act of 1994 and biennially thereafter for the 
     next 4 years'' and inserting ``date of enactment of the 21st 
     Century Flood Reform Act and biennially thereafter''.
       (c) Credit Unions.--Subparagraph (A) of section 204(e)(2) 
     of the Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is 
     amended by striking ``date of enactment of the Riegle 
     Community Development and Regulatory Improvement Act of 1994 
     and biennially thereafter for the next 4 years'' and 
     inserting ``date of enactment of the 21st Century Flood 
     Reform Act and annually thereafter''.
       (d) Government-Sponsored Enterprises.--Paragraph (4) of 
     section 1319B(a) of the Federal Housing Enterprises Financial 
     Safety and Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is 
     amended, in the matter after and below subparagraph (B), by 
     striking ``first, third, and fifth annual reports under this 
     subsection required to be submitted after the expiration of 
     the 1-year period beginning on the date of enactment of the 
     Riegle Community Development and Regulatory Improvement Act 
     of 1994'' and inserting ``first annual report under this 
     subsection required to be submitted after the expiration of 
     the 1-year period beginning on the date of enactment of the 
     21st Century Flood Reform Act and every such second annual 
     report thereafter''.
       (e) Guidelines.--The Federal entities for lending 
     regulation (as such term is defined in section 3(a) of the 
     Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a))), 
     in consultation with the Administrator of the Federal 
     Emergency Management Agency, shall jointly update and reissue 
     the rescinded document of the Administrator entitled 
     ``Mandatory Purchase of Flood Insurance Guidelines'' (lasted 
     updated on October 29, 2014). The updated document shall 
     incorporate recommendations made by the Comptroller General 
     pursuant to the study conducted under section 514 of this 
     Act.

     SEC. 509. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN 
                   STATES ALLOWING ALL-PERILS POLICIES.

       Section 102 of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4012a), as amended by the preceding provisions of 
     this Act, is further amended--
       (1) in subsection (a), by striking ``After'' and inserting 
     ``Subject to subsection (i) of this section, after'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``Each'' and inserting 
     ``Subject to subsection (i) of this section, each'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``A'' the first place 
     such term appears and inserting ``Subject to subsection (i) 
     of this section, a'';
       (ii) in subparagraph (B), by striking ``Each'' and 
     inserting ``Subject to subsection (i) of this section, 
     each''; and
       (C) in paragraph (3), by striking ``The'' the first place 
     such term appears and inserting ``Subject to subsection (i) 
     of this section, the'';
       (3) in subsection (e)(1), by striking ``If'' and inserting 
     ``Subject to subsection (i) of this section, if''; and
       (4) by adding at the end the following new subsection:
       ``(i) Satisfaction of Mandatory Purchase Requirement in 
     States Allowing All-perils Policies.--
       ``(1) Waivers.--Subsections (a) and (b) of this section 
     shall not apply with respect to residential properties in any 
     State that allows any property insurance coverage that covers 
     `all-perils' except specifically excluded perils and that 
     includes coverage for flood perils in an amount at least 
     equal to the outstanding principal balance of the loan or the 
     maximum limit of flood insurance coverage made available 
     under this title with respect to such type of residential 
     property, whichever is less.
       ``(2) Definitions, procedures, standards.--The 
     Administrator may establish such definitions, procedures, and 
     standards as the Administrator considers necessary for making 
     determinations under paragraph (1).''.

     SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS.

       Section 102 of the Flood Disaster Protection Act of 1973 
     (42 U.S.C. 4012a), as amended by the preceding provisions of 
     this Act, is further amended--
       (1) in subsection (c)(2)(A), by striking ``$5,000 or less'' 
     and inserting the following: ``$25,000 or less, except that 
     such amount (as it may have been previously adjusted) shall 
     be adjusted for inflation by the Administrator upon the 
     expiration of the 5-year period beginning upon the enactment 
     of the 21st Century Flood Reform Act and upon the expiration 
     of each successive 5-year period thereafter, in accordance 
     with an inflationary index selected by the Administrator''; 
     and
       (2) by adding at the end the following new subsection:
       ``(j) Flood Insurance Purchase Requirements.--
     Notwithstanding any other provision of law, a State or local 
     government or private lender may require the purchase of 
     flood insurance coverage for a structure that is located 
     outside of an area having special flood hazards.''.

     SEC. 511. CLARIFICATIONS; DEADLINE FOR APPROVAL OF CLAIMS.

       (a) Rule of Construction.--Part C of chapter II of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4081 et 
     seq.), as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     section:

     ``SEC. 1350. RULE OF CONSTRUCTION.

       ``A policyholder of a policy for flood insurance coverage 
     made available under this title must exhaust all 
     administrative remedies, including submission of disputed 
     claims to appeal under any appeal process made available by 
     the Administrator, prior to commencing legal action on any 
     disputed claim under such a policy.''.
       (b) Deadline for Approval of Claims.--
       (1) In general.--Section 1312 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4019), as amended by the 
     preceding provisions of this Act, is further amended--
       (A) in subsection (a), by striking ``The Administrator'' 
     and inserting ``Subject to the other provisions of this 
     section, the Administrator''; and
       (B) by adding at the end the following new subsection:
       ``(c) Deadline for Approval of Claims.--
       ``(1) In general.--The Administrator shall provide that, in 
     the case of any claim for damage to or loss of property under 
     flood insurance coverage made available under this title, an 
     initial determination regarding approval of a claim for 
     payment or disapproval of the claim be made, and notification 
     of such determination be provided to the insured making such 
     claim, not later than the expiration of the 120-day period 
     (as such period may be extended pursuant to paragraph (2)) 
     beginning upon the day on which the policyholder submits a 
     signed proof of loss detailing the damage and amount of the 
     loss. Payment of approved claims shall be made as soon as 
     possible after such approval.
       ``(2) Extension of deadline.--The Administrator shall 
     provide that the period referred to in paragraph (1) may be 
     extended by a single additional period of 15 days in cases 
     where extraordinary circumstances are demonstrated. The 
     Administrator shall, by regulation, establish criteria for 
     demonstrating such extraordinary circumstances and for 
     determining to which claims such extraordinary circumstances 
     apply.''.
       (2) Applicability.--The amendments made by paragraph (1) 
     shall apply to any claim under flood insurance coverage made 
     available under the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.) pending on the date of the enactment of 
     this Act and any claims made after such date of enactment.

     SEC. 512. RISK TRANSFER REQUIREMENT.

       Subsection (e) of section 1345 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended--
       (1) by striking ``(e) Risk Transfer.--The Administrator'' 
     and inserting the following:
       ``(e) Risk Transfer.--
       ``(1) Authority.--The Administrator''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Required risk transfer coverage.--
       ``(A) Requirement.--Not later than the expiration of the 
     18-month period beginning upon the date of the enactment of 
     this paragraph and at all times thereafter, the Administrator 
     shall annually cede a portion of the risk of the flood 
     insurance program under this title to the private reinsurance 
     or capital markets, or any combination thereof, and at rates 
     and terms that the Administrator determines to be reasonable 
     and appropriate, in an amount that--
       ``(i) is sufficient to maintain the ability of the program 
     to pay claims; and
       ``(ii) manages and limits the annual exposure of the flood 
     insurance program to flood losses in accordance with the 
     probable maximum loss target established for such year under 
     subparagraph (B).
       ``(B) Probable maximum loss target.--The Administrator 
     shall for each fiscal year, establish a probable maximum loss 
     target for the national flood insurance program that shall be 
     the maximum probable loss under the national flood insurance 
     program that is expected to occur in such fiscal year.
       ``(C) Considerations.--In establishing the probable maximum 
     loss target under subparagraph (B) for each fiscal year and 
     carrying out subparagraph (A), the Administrator shall 
     consider--
       ``(i) the probable maximum loss targets for other United 
     States public natural catastrophe insurance programs, 
     including as State wind pools and earthquake programs;
       ``(ii) the probable maximum loss targets of other risk 
     management organizations, including the Federal National 
     Mortgage Association and the Federal Home Loan Mortgage 
     Corporation;
       ``(iii) catastrophic, actuarial, and other appropriate data 
     modeling results of the national flood insurance program 
     portfolio;
       ``(iv) the availability of funds in the National Flood 
     Insurance Fund established under section 1310 (42 U.S.C. 
     4017);
       ``(v) the availability of funds in the National Flood 
     Insurance Reserve Fund established under section 1310A (42 
     U.S.C. 4017a);

[[Page H9224]]

       ``(vi) the availability of borrowing authority under 
     section 1309 (42 U.S.C. 4016);
       ``(vii) the ability of the Administrator to repay 
     outstanding debt;
       ``(viii) amounts appropriated to the Administrator to carry 
     out the national flood insurance program;
       ``(ix) reinsurance, capital markets, catastrophe bonds, 
     collateralized reinsurance, resilience bonds, and other 
     insurance-linked securities, and other risk transfer 
     opportunities; and
       ``(x) any other factor the Administrator determines 
     appropriate.
       ``(D) Multi-year contracts.--Nothing in this paragraph may 
     be construed to prevent or prohibit the Administrator from 
     complying with the requirement under subparagraph (A) 
     regarding ceding risk through contracts having a duration 
     longer than one year.''.

     SEC. 513. GAO STUDY OF SIMPLIFICATION OF NATIONAL FLOOD 
                   INSURANCE PROGRAM.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of options for simplifying flood 
     insurance coverage made available under the National Flood 
     Insurance Act, which shall include the following:
       (1) An analysis of how the administration of the National 
     Flood Insurance Program can be simplified--statutorily, 
     regulatorily, and administratively--for private flood 
     insurance policyholders, companies, agents, mortgage lenders, 
     and flood insurance vendors.
       (2) An assessment of ways in which flood insurance coverage 
     made available under the National Flood Insurance Act and the 
     program for providing and administrating such coverage may be 
     harmonized with private insurance industry standards.
       (3) Identification and analysis of ways in which the 
     structure of the National Flood Insurance Program may be 
     simplified, including analysis of the efficacy and effects 
     each of the following actions:
       (A) Eliminating the use of two deductibles under the 
     Program.
       (B) Including in claims for flood-damages full replacement 
     cost for property not damaged, but rendered unusable, by the 
     flooding.
       (C) Using umbrella policies that allow multiple structures 
     on a property to be insured under the same policy.
       (b) Report.--Not later than the expiration of the 18-month 
     period beginning on the date of the enactment of this Act, 
     the Comptroller General shall submit a report to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate regarding the findings and 
     conclusions of the study conducted pursuant to this section.

     SEC. 514. GAO STUDY ON ENFORCEMENT OF MANDATORY PURCHASE 
                   REQUIREMENTS.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the implementation and 
     efficacy of the requirements of section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a). Such study 
     shall at minimum consider the following questions:
       (1) How effectively do Federal agencies, regulated lending 
     institutions, and Federal entities for lending regulation 
     implement the requirements of section 102 of the Flood 
     Disaster Protection Act of 1973?
       (2) Does the current implementation of Flood Disaster 
     Protection Act of 1973 align with the congressional findings 
     and purposes described in section 2(b) of such Act (42 U.S.C. 
     4002)?
       (3) What is the current level of compliance with section 
     102?
       (4) What are the estimated historical impacts on revenue to 
     the National Flood Insurance Program based on the current 
     level of compliance of section 102?
       (5) Is the current monitoring and tracking framework in 
     place sufficient to ensure compliance with section 102?
       (6) What is the best way to establish a consolidated, 
     comprehensive, and accurate repository of data on compliance 
     with section 102?
       (7) What, if any, unintended consequences have resulted 
     from the requirements and implementation of section 102?
       (8) How can Federal agencies and regulated lending 
     institutions improve compliance with section 102?
       (b) Report.--Not later than the expiration of the 18-month 
     period beginning on the date of the enactment of this Act, 
     the Comptroller General shall submit a report to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate regarding the findings and 
     conclusions of the study conducted pursuant to this section.

                    TITLE VI--ADMINISTRATIVE REFORMS

     SEC. 601. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE 
                   NATIONAL FLOOD INSURANCE PROGRAM.

       Part C of chapter 2 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new section:

     ``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE 
                   NATIONAL FLOOD INSURANCE PROGRAM.

       ``(a) Prohibited Acts.--A person shall not knowingly make a 
     false or misleading statement, production, or submission in 
     connection with the proving or adjusting of a claim for flood 
     insurance coverage made available under this Act. Such 
     prohibited acts include--
       ``(1) knowingly forging an engineering report, claims 
     adjustment report or technical assistance report used to 
     support a claim determination;
       ``(2) knowingly making any materially false, fictitious, or 
     fraudulent statement or representation in an engineering 
     report, claims adjustment report, or technical assistance 
     report to support a claim determination;
       ``(3) knowingly submitting a materially false, fictitious, 
     or fraudulent claim.
       ``(b) Civil Enforcement.--The Attorney General may bring a 
     civil action for such relief as may be appropriate whenever 
     it appears that any person has violated or is about to 
     violate any provision of this section. Such action may be 
     brought in an appropriate United States district court.
       ``(c) Referral to Attorney General.--The Administrator 
     shall expeditiously refer to the Attorney General for 
     appropriate action any evidence developed in the performance 
     of functions under this Act that may warrant consideration 
     for criminal or civil prosecution.
       ``(d) Penalties.--
       ``(1) Civil monetary penalty.--Any person who violates 
     subsection (a) shall be subject to a civil penalty of not 
     more than $10,000 for each violation, which shall be 
     deposited into the National Flood Insurance Fund established 
     under section 1310 (42 U.S.C. 4017).
       ``(2) Suspension and debarment.--Any person who violates 
     subsection (a) shall not be eligible, for a period of not 
     less than 2 years and not to exceed 5 years, to--
       ``(A) receive flood insurance coverage pursuant to this 
     title; or
       ``(B) provide services in connection with the selling, 
     servicing, or handling of claims for flood insurance policies 
     provided pursuant to this title.
       ``(3) Other penalties.--The penalties provided for in this 
     subsection shall be in addition to any other civil or 
     criminal penalty available under law.''.

     SEC. 602. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.

       (a) Establishment.--Part C of chapter II of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as 
     amended by the preceding provisions of this Act, is further 
     amended by adding at the end the following new section:

     ``SEC. 1352. APPROVAL OF DECISIONS RELATING TO FLOOD 
                   INSURANCE COVERAGE.

       ``(a) In General.--The Administrator shall establish an 
     appeals process to enable holders of a flood insurance policy 
     provided under this title to appeal the decisions of their 
     insurer, with respect to the disallowance, in whole or in 
     part, of any claims for proved and approved losses covered by 
     flood insurance. Such appeals shall be limited to the claim 
     or portion of the claim disallowed by the insurer.
       ``(b) Appeal Decision.--Upon a decision in an appeal under 
     subsection (a), the Administrator shall provide the 
     policyholder with a written appeal decision. The appeal 
     decision shall explain the Administrator's determination to 
     uphold or overturn the decision of the flood insurer. The 
     Administrator may direct the flood insurer to take action 
     necessary to resolve the appeal, to include re-inspection, 
     re-adjustment, or payment, as appropriate.
       ``(c) Rules of Construction.--This section shall not be 
     construed as--
       ``(1) making the Federal Emergency Management Agency or the 
     Administrator a party to the flood insurance contract; or
       ``(2) creating any action or remedy not otherwise provided 
     by this title.''.
       (b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter 
     Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is 
     hereby repealed.

     SEC. 603. DEADLINE FOR APPROVAL OF CLAIMS.

       (a) In General.--Section 1312 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4019), as amended by the 
     preceding provisions of this Act, is further amended by 
     adding at the end the following new subsection:
       ``(d) Deadline for Approval of Claims.--
       ``(1) In general.--The Administrator shall provide that, in 
     the case of any claim for damage to or loss of property under 
     flood insurance coverage made available under this title, a 
     final determination regarding approval of a claim for payment 
     or disapproval of the claim be made, and notification of such 
     determination be provided to the insured making such claim, 
     not later than the expiration of the 90-day period (as such 
     period may be extended pursuant to paragraph (2)) beginning 
     upon the day on which such claim was made. Payment of 
     approved claims shall be made as soon as possible after such 
     approval.
       ``(2) Extension of deadline.--The Administrator shall 
     provide that the period referred to in paragraph (1) may be 
     extended by a single additional period of 15 days in cases 
     where extraordinary circumstances are demonstrated. The 
     Administrator shall, by regulation, establish criteria for 
     demonstrating such extraordinary circumstances and for 
     determining to which claims such extraordinary circumstances 
     apply.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall apply to any claim under flood insurance coverage made 
     available under the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.) pending on the date of the enactment of 
     this Act and any claims made after such date of enactment.

[[Page H9225]]

  


     SEC. 604. LITIGATION PROCESS OVERSIGHT AND REFORM.

       Part C of chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new section:

     ``SEC. 1353. OVERSIGHT OF LITIGATION.

       ``(a) Oversight.--The Administrator shall monitor and 
     oversee litigation conducted by Write Your Own companies 
     arising under contracts for flood insurance sold pursuant to 
     this title, to ensure that--
       ``(1) litigation expenses are reasonable, appropriate, and 
     cost-effective; and
       ``(2) Write Your Own companies comply with guidance and 
     procedures established by the Administrator regarding the 
     conduct of litigation.
       ``(b) Denial of Reimbursement for Expenses.--The 
     Administrator may deny reimbursement for litigation expenses 
     that are determined to be unreasonable, excessive, contrary 
     to guidance issued by the Administrator, or outside the scope 
     of any arrangement entered into with a Write Your Own 
     company.
       ``(c) Litigation Strategy.--The Administrator may direct 
     litigation strategy for claims arising under a contract for 
     flood insurance sold by a Write Your Own company.''.

     SEC. 605. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

       Part C of chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new section:

     ``SEC. 1354. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

       ``The Administrator may not at any time newly employ in 
     connection with the flood insurance program under this title 
     any attorney who has been suspended or disbarred by any 
     court, bar, or Federal or State agency to which the 
     individual was previously admitted to practice.''.

     SEC. 606. TECHNICAL ASSISTANCE REPORTS.

       (a) Use.--Section 1312 of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4019), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(e) Use of Technical Assistance Reports.--When adjusting 
     claims for any damage to or loss of property which is covered 
     by flood insurance made available under this title, the 
     Administrator may rely upon technical assistance reports, as 
     such term is defined in section 1312A, only if such reports 
     are final and are prepared in compliance with applicable 
     State and Federal laws regarding professional licensure and 
     conduct.''.
       (b) Disclosure.--The National Flood Insurance Act of 1968 
     is amended by inserting after section 1312 (42 U.S.C. 4019) 
     the following new section:

     ``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.

       ``(a) In General.--Notwithstanding section 552a of title 5, 
     United States Code, upon request by a policyholder, the 
     Administrator shall provide a true, complete, and unredacted 
     copy of any technical assistance report that the 
     Administrator relied upon in adjusting and paying for any 
     damage to or loss of property insured by the policyholder and 
     covered by flood insurance made available under this title. 
     Such disclosures shall be in addition to any other right of 
     disclosure otherwise made available pursuant such section 
     552a or any other provision of law.
       ``(b) Direct Disclosure by Write Your Own Companies and 
     Direct Servicing Agents.--A Write Your Own company or direct 
     servicing agent in possession of a technical assistance 
     report subject to disclosure under subsection (a) may 
     disclose such technical assistance report without further 
     review or approval by the Administrator.
       ``(c) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Policyholder.--The term `policyholder' means a person 
     or persons shown as an insured on the declarations page of a 
     policy for flood insurance coverage sold pursuant to this 
     title.
       ``(2) Technical assistance report.--The term `technical 
     assistance report' means a report created for the purpose of 
     furnishing technical assistance to an insurance claims 
     adjuster assigned by the National Flood Insurance Program, 
     including by engineers, surveyors, salvors, architects, and 
     certified public accounts.''.

     SEC. 607. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD 
                   INSURANCE POLICIES.

       Section 100234 of the Biggert-Waters Flood Insurance Reform 
     Act of 2012 (42 U.S.C. 4013a) is amended by adding at the end 
     the following new subsection:
       ``(c) Disclosure of Coverage.--
       ``(1) Disclosure sheet.--Each policy under the National 
     Flood Insurance Program shall include a disclosure sheet that 
     sets forth, in plain language--
       ``(A) the definition of the term `flood' for purposes of 
     coverage under the policy;
       ``(B) a description of what type of flood forces are 
     necessary so that losses from an event are covered under the 
     policy, including overflow of inland or tidal waves, unusual 
     and rapid accumulation or runoff of a surface any source, and 
     mudflow;
       ``(C) a statement of the types and characteristics of 
     losses that are not covered under the policy;
       ``(D) a summary of total cost and amount of insurance 
     coverage, and any other information relating to such coverage 
     required to be disclosed under section 1308(l) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015(l));
       ``(E) a statement that the disclosure sheet provides 
     general information about the policyholder's standard flood 
     insurance policy;
       ``(F) a statement that the standard flood insurance policy, 
     together with the endorsements and declarations page, make up 
     the official contract and are controlling in the event that 
     there is any difference between the information on the 
     disclosure sheet and the information in the policy; and
       ``(G) a statement that if the policyholder has any 
     questions regarding information in the disclosure sheet or 
     policy he or she should contact the entity selling the policy 
     on behalf of the Program, together with contact information 
     sufficient to allow the policyholder to contact such entity.
       ``(2) Acknowledgment sheet.--Each policy under the National 
     Flood Insurance Program shall include an acknowledgment sheet 
     that sets forth, in plain language--
       ``(A) a statement of whether or not there is a basement in 
     the property to be covered by the policy;
       ``(B) a statement of whether or not the policy provides 
     coverage for the contents of the property covered by the 
     policy;
       ``(C) a statement that the standard flood insurance policy, 
     together with the endorsements and declarations page, make up 
     the official contract and are controlling in the event that 
     there is any difference between the information on the 
     acknowledgment sheet and the information in the policy; and
       ``(D) a statement that if the policyholder has any 
     questions regarding information in the acknowledgment sheet 
     or policy he or she should contact the entity selling the 
     policy on behalf of the Program, together with contact 
     information sufficient to allow the policyholder to contact 
     such entity.
       ``(3) Required signatures.--Notwithstanding section 1306(c) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4013(c)), a policy for flood insurance coverage under the 
     National Flood Insurance Program may not take effect unless 
     the disclosure sheet required under paragraph (1) and the 
     acknowledgment sheet required under paragraph (2), with 
     respect to the policy, are signed and dated by the 
     policyholder and the seller of the policy who is acting on 
     behalf of the Program.''.

     SEC. 608. RESERVE FUND AMOUNTS.

       Section 1310 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4017) is amended by adding at the end the 
     following new subsection:
       ``(g) Crediting of Reserve Fund Amounts.--Funds collected 
     pursuant to section 1310A may be credited to the Fund under 
     this section to be available for the purpose described in 
     subsection (d)(1).''.

     SEC. 609. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE 
                   ADVOCATE.

       (a) In General.--Section 24 of the Homeowner Flood 
     Insurance Affordability Act of 2014 (42 U.S.C. 4033) is 
     amended by adding at the end the following new subsection:
       ``(c) Staff.--The Administrator shall ensure that the Flood 
     Insurance Advocate has sufficient staff to carry out all of 
     the duties and responsibilities of the Advocate under this 
     section.''.
       (b) Timing.--The Administrator of the Federal Emergency 
     Management Agency shall take such actions as may be necessary 
     to provide for full compliance with section 24(c) of the 
     Homeowner Flood Insurance Affordability Act of 2014, as added 
     by the amendment made by subsection (a) of this section, not 
     later than the expiration of the 180-day period beginning on 
     the date of the enactment of this Act.

     SEC. 610. LIMITED EXEMPTION FOR DISASTER OR CATASTROPHE 
                   CLAIMS ADJUSTERS.

        Section 7 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 207) is amended by adding at the end the following:
       ``(s)(1) The provisions of this section shall not apply for 
     a period of 2 years after the occurrence of a major disaster 
     to any employee--
       ``(A) employed to adjust or evaluate claims resulting from 
     or relating to such major disaster, by an employer not 
     engaged, directly or through an affiliate, in underwriting, 
     selling, or marketing property, casualty, or liability 
     insurance policies or contracts;
       ``(B) who receives from such employer on average weekly 
     compensation of not less than $591.00 per week or any minimum 
     weekly amount established by the Secretary, whichever is 
     greater, for the number of weeks such employee is engaged in 
     any of the activities described in subparagraph (C); and
       ``(C) whose duties include any of the following:
       ``(i) interviewing insured individuals, individuals who 
     suffered injuries or other damages or losses arising from or 
     relating to a disaster, witnesses, or physicians;
       ``(ii) inspecting property damage or reviewing factual 
     information to prepare damage estimates;
       ``(iii) evaluating and making recommendations regarding 
     coverage or compensability of claims or determining liability 
     or value aspects of claims;
       ``(iv) negotiating settlements; or
       ``(v) making recommendations regarding litigation.
       ``(2) Notwithstanding any other provision of section 18, in 
     the event of a major disaster, this Act exclusively shall 
     govern all

[[Page H9226]]

     such employers in lieu of any State or other Federal law or 
     regulation or local law or regulation, with respect to the 
     employees described in paragraph (1).
       ``(3) The exemption in this subsection shall not affect the 
     exemption provided by section 13(a)(1).
       ``(4) For purposes of this subsection--
       ``(A) the term `major disaster' means any natural 
     catastrophe, including any hurricane, tornado, storm, high 
     water, wind driven water, tidal wave, tsunami, earthquake, 
     volcanic eruption, landslide, mudslide, snowstorm, or 
     drought, or, regardless of cause, any other catastrophe, 
     including fire, flood, explosion, land collapse, avalanche, 
     or pollutant or chemical release;
       ``(B) the term `employee employed to adjust or evaluate 
     claims resulting from or relating to such major disaster' 
     means an individual who timely secured or secures a license 
     required by applicable law to engage in and perform the 
     activities described in clauses (i) through (v) of paragraph 
     (1)(C) relating to a major disaster, and is employed by an 
     employer that maintains worker compensation insurance 
     coverage or protection for its employees, if required by 
     applicable law, and withholds applicable Federal, State, and 
     local income and payroll taxes from the wages, salaries and 
     any benefits of such employees; and
       ``(C) the term `affiliate' means a company that, by reason 
     of ownership or control of twenty-five percent (25%) or more 
     of the outstanding shares of any class of voting securities 
     of one or more companies, directly or indirectly, controls, 
     is controlled by, or is under common control with, another 
     company.''.

  The SPEAKER pro tempore. The bill shall be debatable for 1 hour 
equally divided and controlled by the chair and ranking minority member 
of the Committee on Financial Services.
  The gentleman from Texas (Mr. Hensarling) and the gentlewoman from 
California (Ms. Maxine Waters) each will control 30 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. HENSARLING. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. HENSARLING. Mr. Speaker, I yield myself such time as I may 
consume.
  Hurricanes Harvey, Irma, Maria: the images of the human misery and 
the economic devastation are still clearly imprinted on our minds.
  Unfortunately, we know that part of this is a result of a failed 
National Flood Insurance Program, which, Mr. Speaker, faced three 
important challenges.
  First, it is a bankrupt program. It is unsustainable. Taxpayers are 
on the hook for $1.2 trillion, running an annual actuarial deficit of 
$1.5 billion. It has already received two different bailouts, for a 
combined total of about $25 billion.
  Also, it incents and subsidizes people to actually live in harm's 
way.
  Finally, Mr. Speaker, it is a government monopoly that, 
notwithstanding subsidized rates, still, unfortunately, has 
unaffordable premiums for many.
  Today is a good day, Mr. Speaker, because today the House gets to 
vote on the 21st Century Flood Reform Act.
  I thank the gentleman from Missouri (Mr. Luetkemeyer) for his 
leadership on the mapping reforms and reinsurance. I want to thank the 
gentleman from Florida (Mr. Ross) for his reforms on opening up the 
market. I certainly want to thank the gentleman from Wisconsin (Mr. 
Duffy) for his tireless effort and leadership in bringing this bill to 
the floor.
  There are a lot of good reforms in this bill, Mr. Speaker, for both 
taxpayers and ratepayers. Let me just briefly touch upon two.
  It is an absolutely revolutionary reform, Mr. Speaker, that we can 
break open the government monopoly and bring in market competition, 
innovation competition, and more affordable rates for so many.
  Milliman, one of the actuarial experts within the marketplace, 
released a study a couple of months ago talking about the market 
competition, saying: ``Based on our estimates, this would hold for 77 
percent of all single families in Florida, 69 percent in Louisiana, and 
92 percent in Texas,'' who all would see cheaper premiums.
  We know that is not theory. It is actually happening in the market 
today. In the nascent part of the market that is open, people are 
getting hundreds, if not thousands, of dollars of savings.
  One of the great tragedies that I saw in my native State of Texas, in 
Houston, was how few people actually took up flood insurance. Think, 
Mr. Speaker, if we had competition, if we had advertising, if people 
could roll that into their homeowner rates, how many more people would 
have been protected by the ravages of these hurricanes.
  One more reform, briefly. We have these repetitive loss properties 
where people live in areas that flood over and over and over. I met a 
couple of families in Houston. They had three floods in 8 years. We 
have got to help them.
  This bill provides more money for relocation, for flood-proofing, and 
for mitigation, than any other flood reform bill, all by 25 percent. We 
would prioritize these areas.
  We also have to realize that if we are going to make this program 
sustainable, we cannot have 1 percent of the properties causing 25 
percent of the losses.

                              {time}  1515

  Ultimately, if all we do is rebuild the same properties in the same 
fashion in the same location, that is neither wise nor compassionate. 
We have an opportunity to enact historic reforms. We should do it 
today.
  Mr. Speaker, I reserve the balance of my time.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself such 
time as I may consume.
  Mr. Speaker, I rise today in opposition to H.R. 2874, legislation 
that will make flood insurance more expensive, less available, and less 
fair for consumers.
  At the outset, let me just say that I appreciate the time and effort 
that Chairman Hensarling and Mr. Duffy spent in responding to my calls 
for bipartisanship. We sat down multiple times to discuss areas where 
we could find compromise and a path forward.
  Although our discussions were ultimately not successful and I 
strongly oppose this bill, I continue to believe that flood insurance 
really can be a bipartisan issue. In fact, I have a long history of 
working across the aisle on the National Flood Insurance Program.
  In 2012, I coauthored the Biggert-Waters Act with former 
Representative Judy Biggert, and in 2014, when FEMA's botched 
implementation of the premium increases called for in that law led to 
unintended consequences, lawmakers from across the aisle joined me once 
again to pass the Homeowner Flood Insurance Affordability Act.
  Unfortunately, despite the best efforts of Members from both sides of 
the aisle, I cannot support H.R. 2874 because it contains many 
provisions that will harm American families and businesses.
  First and most importantly, the bill makes flood insurance more 
expensive. This bill will punish low and middle class Americans with 
increased premiums, surcharges, and reserve fund assessments. In the 
wake of a historic hurricane season that devastated so many 
communities, it is unconscionable that we are considering a bill that 
would make flood insurance less affordable. We should be focussing on 
providing additional disaster relief and recovery after these 
devastating storms, not punishing these communities with higher 
premiums and surcharges.
  It is clear that there are those who choose to live near the coast as 
a luxury, but there are also those who live in floodplains who are low- 
and middle-income families with modest homes, including some 
neighborhoods that are predominantly minority. This is because of the 
sad history of government-endorsed racism in access to credit and in 
neighborhood planning that pushed minorities into the bad parts of 
town, which, in some cases, were bad because they were prone to 
flooding.
  These communities also often lack the resources to make upgrades to 
their homes and infrastructure to guard against future flood risk and 
are the least able to recover after a flood. The Lower Ninth Ward in 
New Orleans is a prime example.
  Another example is Greenspoint, a business district in Houston that 
was one of the hardest hit by Harvey. One in three residents in 
Greenspoint lives below the poverty line. Families in Greenspoint were 
still living in water-damaged and moldy units from flooding last year 
when they were hit again by Harvey.

[[Page H9227]]

  There is no simple answer to our Nation's flooding problems, but I do 
know that raising the premiums and racking these up on policyholders 
will only hurt families as well as our economy.
  Second, the bill makes flood insurance less available by allowing 
businesses to opt out of the requirement to purchase flood insurance, 
even if they are a high-risk property in a flood zone.
  What is more, the bill kicks out certain low-value homes from the 
NFIP by prohibiting coverage for any home with claims that, over the 
entire history of the property, following enactment, even if it changes 
hands, exceed three times the replacement value of the structure.
  This provision is so ill-conceived that the American Bankers 
Association wrote: ``Cutting off such properties from NFIP coverage 
will likely lead to significant hardship for homeowners, lenders, and 
communities. As borrowers lose NFIP coverage, and especially if 
alternative private coverage is not available or affordable, these 
properties will lose value, and the risk of abandonment and/or 
foreclosure increases dramatically. In some flood-prone communities, 
this could lead to a local or regional foreclosure crisis.''
  Third, the bill makes flood insurance less fair for policyholders. In 
the wake of this historic hurricane season, it is astounding to me that 
the bill does nothing to fund flood maps so that we can better protect 
families. Oftentimes, communities are unaware of their true flood risk; 
and by not providing any funding for flood maps, building in areas with 
no information about flood risk will only continue.
  Climate change will only make these storms more frequent, stronger, 
and more devastating than ever before, and we must make sure that the 
NFIP remains available and affordable to all Americans, not make it 
worse.
  For all of these reasons, I urge my colleagues to oppose H.R. 2874, 
and I reserve the balance of my time.
  Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Royce), the chairman of the Foreign Affairs Committee 
and respected member of the Financial Services Committee.
  Mr. ROYCE of California. Mr. Speaker, I rise in strong support of the 
21st Century Flood Reform Act.
  I think what Chairman Jeb Hensarling was able to do here, and 
Chairman Duffy, is put forward a bill that has really brought together 
the Montagues and the Capulets, I mean, when you think about the fact 
that, on one hand, you have got the environmental community supporting 
this and you have got taxpayers' advocates; you have got conservative 
think tanks and you have got affordable housing groups; you have the 
reinsurers and you have the insurers.
  We talked about two priorities that at least I was pushing to 
reauthorize in the National Flood Insurance Program. One of those was 
to provide better disclosure to consumers about flood risk. We wanted 
them to know. And the second was to decrease the number of repeatedly 
flooded properties. This bill accomplishes both of those things.

  Section 108 of the bill includes language that I authored, which will 
provide information to home buyers about past flood events, about the 
damage, about insurance claims, about any obligation they might have to 
carry flood insurance; and the National Association of Realtors 
supports this commonsense approach.
  Section 402 of the bill includes the bipartisan Repeatedly Flooded 
Communities Preparation Act, sponsored by Representative Earl 
Blumenauer and me. This means that repeatedly flooded properties, which 
comprise less than 2 percent of NFIP policies but account for one-third 
of all claims, are dealt with.
  Responsible, community-driven mitigation is a win-win proposal, one 
which will help our neighborhoods become stronger in the face of floods 
and address the fiscal footing of the overall program by decreasing the 
cost as this is addressed to community level.
  Finally, Mr. Speaker, I would particularly like to thank the Pew 
Charitable Trusts, their flood-prepared communities initiative, for 
their support of our reform efforts.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 3 minutes to 
the gentleman from Missouri (Mr. Cleaver), the ranking member of the 
Housing and Insurance Subcommittee on the Financial Services Committee.
  Mr. CLEAVER. Mr. Speaker, I rise in opposition to H.R. 2874, the 21st 
Century Flood Reform Act.
  When the Financial Services Committee began the process to 
reauthorize the National Flood Insurance Program, I was very hopeful 
that we could work across the aisle in a bipartisan manner. 
Unfortunately, the bill we see here today is not reflective of that 
approach.
  Though a number of changes have, in fact, been made to H.R. 2874 
since leaving committee, the new provisions still fail to incorporate 
many of our priorities for reauthorization or address our concerns with 
the NFIP.
  Most significantly, Mr. Speaker, in H.R. 2874 is the fact that it 
will increase cost for policyholders. The bill raises costs on pre-FIRM 
structures from 5 percent to 6.5 percent.
  Additionally, the bill will require a $40 surcharge on primary 
residences and seeks to increase the reserve fund by charging 
policyholders an additional 1 percent every year.
  The bill also changes the fee to policyholders who opt to pay their 
policy monthly. Many of our constituents who live in flood-prone areas 
are not wealthy. These are hardworking Americans who rely on the NFIP 
to help offset costs and protect their homes from disastrous flooding.
  Instead of working to find ways to truly address affordability within 
the NFIP, the bill proposes to set up a voluntary State affordability 
program. This proposal then fails to provide States with the 
administrative costs to set up a program, a cost that may be far too 
burdensome for many already-struggling States.
  Even worse, the program would offset discounts for eligible 
policyholders by charging policyholders who are not able to take 
advantage of the affordability program--yet again increasing costs for 
homeowners.
  Importantly, H.R. 2874 makes no effort to address the debt. Though 
the NFIP had been self-sustaining for many years, extreme unexpected 
damage following Hurricane Katrina and Superstorm Sandy left the NFIP 
with over $20 billion in debt. Though some of the debt was, in fact, 
recently forgiven, the NFIP needed to borrow more from the Treasury 
following Hurricanes Harvey, Irma, and Maria.
  The NFIP pays over $400 million a year in interest, money that could 
go towards making improvements in the program or helping enhance 
affordability. We need to wipe the slate clean and give the NFIP a 
fresh start.
  H.R. 2874 fails to provide additional funding for flood maps, maps 
that, in many jurisdictions, are desperately needed if we are going to 
have updated maps. This bill also lacks funding for new mapping 
technology that could help improve the accuracy of the flood maps.
  In conclusion, the short-term reauthorization of the NFIP expires 
early next month. I urge my colleagues to vote against this bill and 
support a long-term NFIP strategy that promotes affordability, 
stability for stakeholders, and necessary funding for mapping and 
mitigation.
  Mr. HENSARLING. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman 
from Missouri (Mr. Luetkemeyer), chairman of the Financial Institutions 
and Consumer Credit Subcommittee and one of the coauthors of H.R. 2874.
  Mr. LUETKEMEYER. Mr. Speaker, I rise today in support of the 21st 
Century Flood Reform Act.
  Chairman Hensarling and Chairman Duffy have crafted a great 
substitute amendment that will bring about meaningful reform of NFIP 
and protect taxpayers and policyholders alike.

  The amendment includes H.R. 2246, my Taxpayer Exposure Mitigation Act 
of 2017. Included in that bill is a requirement that the FEMA 
Administrator purchase reinsurance or a capital market alternative in 
an effort to guard taxpayers against losses.
  I know of no major insurance company in the private sector that does 
not purchase coverage to protect itself against loss of this kind. 
These products function well. There is no reason that FEMA should not 
be following this best practice as well.
  The amendment also grants States and local governments and our 
constituents the ability to play a more proactive role in the FEMA 
floodplain mapping process.

[[Page H9228]]

  I represent the Lake of the Ozarks with its 27,000 pieces of property 
along its shoreline, which has dealt with tremendous mapping issues 
over the past several years. Hundreds of letters of map amendments were 
granted to my constituents, and there were multiple attempts by the 
community to engage with FEMA to fix their mapping process, but my 
constituents never felt their concerns were taken seriously.
  The Lake of the Ozarks is not unique. FEMA processes 25,000 LOMA 
letters each year at a cost of $13 million. This should tell all of us 
something about the mapping process. Under this bill, areas like the 
Lake of the Ozarks would be able to improve the accuracy of the maps 
themselves, no longer beholden to Washington, D.C.
  This amendment would also create an opt-out from the mandatory 
coverage required for commercial properties, allowing banks and 
businesses more flexibility to secure flood insurance coverage that 
meets an entity's unique risks and needs.

                              {time}  1530

  It is important to note that this legislation does not preclude any 
business from securing NFIP policy. Policies will remain available to 
all businesses.
  Also, this provision should not be misconstrued as a caveat to avoid 
the purchase of flood insurance. Businesses operating in flood plains 
should have flood insurance, and I am confident that lenders will 
insist upon reasonable coverage. I believe this should be a business 
decision between the lender and the business customer.
  Lastly, this amendment would require FEMA to use actual replacement 
cost in determining premium rates for NFIP policies--language 
originally included in my H.R. 2565.
  Pricing for private policies frequently takes into account the actual 
replacement cost of a structure. It makes sense. Any insurance policy 
should factor in the amount of money that would be needed to replace a 
structure.
  FEMA doesn't adhere to this fundamental of insurance. Rather, the 
agency effectively uses a fixed national average for insured value and 
replacement costs when determining customer premiums.
  The result of FEMA's current practice is that lower-income 
policyholders subsidize wealthier homeowners.
  The substitute amendment we consider today gives FEMA the flexibility 
it needs to stop this practice and move toward a replacement cost 
pricing structure.
  I also want to thank my colleague from Wisconsin for including this 
provision in his substitute amendment. I am confident this package will 
allow the private sector to flourish and take risk off the backs of 
taxpayers while protecting NFIP policyholders.
  Mr. Speaker, I urge my colleagues to support the measure.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentlewoman from New York (Mrs. Carolyn B. Maloney), the ranking 
member of the Subcommittee on Capital Markets of the Financial Services 
Committee.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I thank the 
gentlewoman for yielding and for her leadership.
  Mr. Speaker, I rise today in opposition to H.R. 2874.
  There are some good things in this bill, including the Zeldin-Maloney 
bill, that would allow policyholders to receive mitigation credit for 
elevating boilers and other mechanical systems to higher floors instead 
of in easily flooded basements, which is a huge deal for the city of 
New York and other big cities.
  But there are too many provisions that would make flood insurance in 
my district either unavailable or unaffordable. For this reason, the 
city of New York opposes this bill.
  The bill would raise premiums on homeowners by increasing the floor 
on premium increases that Congress just set 3 years ago. Currently, 
FEMA has to increase premiums by a minimum of 5 percent per year. Under 
this bill, FEMA would have to increase premiums by a minimum of 6.5 
percent per year.
  When you add up the mandatory increases in premiums required to fund 
FEMA's reserve fund and all of the other surcharges in the bill, the 
effect would be to significantly increase flood insurance premiums for 
homeowners.
  Finally, I am concerned about eliminating the noncompete clause for 
so-called write-your-own private insurers. This would allow the private 
insurers that administer the National Flood Insurance Program to 
exploit their access to FEMA's database in order to cherry-pick the 
safest properties. This would leave FEMA with only the riskiest 
properties, and would undermine the solvency of the National Flood 
Insurance Program.
  So, while there are many thoughtful good provisions in this bill, 
there are too many provisions that would dramatically increase premiums 
for my constituents.
  Mr. Speaker, I urge a ``no'' vote on this bill.
  Mr. HENSARLING. Mr. Speaker, I yield 3 minutes to the gentleman from 
Florida (Mr. Ross), the vice chairman of the Housing and Insurance 
Subcommittee and the author of the pro-consumer competition title of 
the bill.
  Mr. ROSS. Mr. Speaker, I thank the chairman for yielding.
  Mr. Speaker, I rise in support of the 21st Century Flood Reform Act, 
which would give communities in the Tampa Bay area and all of our 
constituents a National Flood Insurance Program that serves as a 
lifeboat when disaster strikes.
  Right now, the NFIP is more like an anchor tied around our neck, 
dragging this country deeper and deeper into debt as the waters rise.
  With a $1.4 billion annual deficit and debt that continues to grow, 
this program desperately needs reform, and H.R. 2874 is our 
opportunity.
  We should all recognize that the NFIP is not a relief program. It is 
an insurance program. It is supposed to insure against losses, which 
entails far more than simply paying for damages.
  Insurance is not about relief. It is about responsibly managing risk. 
Insurance means mitigating risks before disaster strikes, making 
investments in resiliency measures, telling people when the risk they 
face is simply too great, and providing service that makes people 
thankful for choosing your product.
  No one knows this better than the professionals in the insurance 
industry who work day in and day out to help Americans protect their 
lives, their loved ones, and their belongings against all types of 
threats--car crashes, earthquakes, and wildfires.
  Regrettably, Federal policy has made it extremely difficult for 
private insurers to write policies that cover flood risk. We have 
created a virtual monopoly for the NFIP at the expense of policyholders 
and taxpayers alike, yet we are still $30 billion in debt.
  H.R. 2874, which includes my bipartisan Private Flood Insurance 
Market Development Act, will allow the private sector to compete to 
help homeowners manage thei exposure to floods.

  Competition can lower costs, provide more affordable options for 
consumers, and reduce the unacceptable number of uninsured homes by 
helping people understand their risk.
  As it stands now, the NFIP is the worst of all worlds: It is too big 
to fail. It is also bound to fail.
  With this legislation, we can make substantial progress in turning 
around a program that has found itself on the GAO's high-risk list for 
the last decade.
  Under this bill, consumers will finally have an opportunity to select 
among a menu of options a plan that would fit their needs. As a result, 
they will be more likely to buy insurance than ever before.
  That is not the case today with the NFIP. Our constituents are 
severely limited. $250,000 maximum coverage on an NFIP policy. If you 
own a business, you are not going to get business interruption 
coverage.
  What good is the insurance, then?
  Thankfully, the private sector is capable of offering more robust 
policies that also provide more incentives for property owners to 
invest in mitigation and resiliency. Ultimately, this increased 
emphasis on mitigation will benefit homeowners and taxpayers alike.
  This legislation will help us end the absurd practice of paying to 
rebuild a home that has been destroyed by flooding on more than three 
occasions.
  Further, it strengthens the NFIP by directing FEMA to spread the 
NFIP's risk onto the global marketplace.

[[Page H9229]]

  This bill also contains more funding for mitigation and recovery than 
has ever been authorized by Congress. Over $1 billion will be made 
available by this bill to help manage our constituents' exposure to 
floods and improve the safety of a home after a catastrophe.
  Mr. Speaker, let's support the freedom to insure against obvious 
danger that imperils people's homes and their wallets. Let's support 
informed decisionmaking.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentlewoman from New York (Ms. Velazquez), the ranking member of 
the Small Business Committee and a senior member of the Financial 
Services Committee.
  Ms. VELAZQUEZ. Mr. Speaker, I thank the gentlewoman for yielding.
  Mr. Speaker, I rise in opposition to H.R. 2874.
  This bill makes flood insurance more expensive, less available, and 
less fair for millions of working families.
  This bill all but abandons Hurricane Sandy victims.
  Hurricane Sandy made landfall in New York and New Jersey 5 years ago, 
causing approximately $60 billion in damage. More than 50 people lost 
their lives.
  Today--half a decade later--more than 1,000 homeowners still have not 
obtained proper resolution of their flood insurance claim.
  That is why I have worked for almost 1\1/2\ years on legislation to 
improve FEMA's claims processing system and to bring proper oversight 
and management to the write-your-own program. While some of my 
recommended changes were included in this bill, language was also 
included that blows a direct hole in these reforms. This bill requires 
policyholders to exhaust all administrative remedies on any disputed 
claim before having their day in court.
  However, we have already seen that FEMA's administrative system is 
broken--and this bill will enable dishonest insurance providers to 
continue hiding behind an unreachable threshold--meaning policyholders 
will never be made whole.
  After more than 5 years, with more than 1,000 families still awaiting 
resolution of their Hurricane Sandy claim, we must seek to meaningfully 
reform the claims process, not make it harder for families to return to 
their home.
  A vote for this bill is a vote to abandon Hurricane Sandy victims. 
Vote ``no.''
  Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Rothfus), the vice chairman of our Financial 
Institutions and Consumer Credit Subcommittee.
  Mr. ROTHFUS. Mr. Speaker, I thank the chairman for yielding.
  Mr. Speaker, I rise today to express my support for the 21st Century 
Flood Reform Act.
  I commend my colleagues on the Financial Services Committee for their 
hard work on this important bill, and I urge all Members to support its 
passage.
  As we all know, this hurricane season brought flooding and 
devastation to many parts of the country. Hurricanes Harvey, Irma, and 
Maria added even more debt to the National Flood Insurance Program, 
leading to a taxpayer bailout of $16 billion. That is $16 billion taken 
from the pockets of hardworking Americans. Unless Congress passes the 
21st Century Flood Reform Act, we will, once again, have to bail out 
this program.
  The NFIP, as it currently operates, is structurally unsound. This 
bill will help to prevent future bailouts by authorizing the NFIP to 
build up its reserves. It will also prioritize mitigation efforts and 
encourage the NFIP to engage in actuarially sound practices.
  Of course, this effort is not solely focused on taxpayer protection. 
Homeowners, too, will benefit from the 21st Century Flood Reform Act.
  This bill crucially fosters the development of a private market for 
flood insurance. This will provide consumers with better options and 
more competitive prices.
  My own State's former insurance commissioner testified in front of 
our committee last year in support of this idea after seeing benefits 
of private sector involvement. Commissioner Miller said:
  ``In Pennsylvania, competition is proving to be good for consumers. . 
. .''
  ``We are finding in many cases that private carriers are willing to 
offer comparable coverage at substantially lower cost than the NFIP.''
  Mr. Speaker, this is good for the people of western Pennsylvania and 
it is the right policy for homeowners across the country.
  I also want to thank Chairman Duffy for incorporating my amendment 
concerning Amish communities into the final bill. The Amish and similar 
religious communities have a tradition, informed by their religious 
obligations, of paying for community losses through mutual aid 
societies. My amendment to this bill accommodates those communities.
  Mr. Speaker, I urge my colleagues to support this bill.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Georgia (Mr. David Scott), a senior member of the 
Financial Services Committee.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I thank Ranking Member 
Waters for yielding.
  First, it is very important for us to understand that flooding, Mr. 
Speaker, is no longer just a coastal lawmaker's problem. Flooding is 
now running rampant in every part of our country.
  So I think that every Member on the floor today and every Member of 
Congress needs to ask themselves a question, and that is: Are you 
really willing to put your name on this bill? Are you really willing to 
vote for this bill that will drastically raise premiums on your 
constituents without putting the necessary guardrails in place so those 
who can't afford the high costs can still buy flood insurance?
  Now, one example I am talking about is this, Mr. Speaker--and I want 
to make this clear. I hope that there are listeners on C-SPAN who will 
tune in. Call your neighbors, call somebody. So you listen to this: 
This bill, H.R. 2874, will require policyholders to pay for any 
assistance they get when their States create affordability programs.
  Here is an example: Mr. Duffy's bill allows for the creation of a 
voluntary State-run affordability program. But here is the catch, Mr. 
Speaker: there isn't one dime of funding provided in this bill to set 
up and implement this program.
  Instead, Mr. Duffy's bill says the cost of any discount given to 
policyholders will have to be offset by fee increases on other 
policyholders within the same State.
  Now, Mr. Speaker, this is the Achilles' heel in this flood insurance 
business. I can guarantee you that this would have a gravely negative 
impact on all of us who are low to middle income.
  Mr. Speaker, I made it clear to Mr. Jeb Hensarling, our distinguished 
chairman; and to Mr. Duffy that we are willing to walk across party 
lines.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield an additional 
30 seconds to the gentleman.
  Mr. DAVID SCOTT of Georgia. But we offered this, as the ranking 
member said, as an excellent opportunity. This summer, we spent week 
after week on this bill so that we could move this bill forward in a 
way that would address affordability, which was a major concern of 
mine, of the ranking member's, and those of us on our side of the 
aisle.

                              {time}  1545

  There is no affordability in here. It is very important for us to 
point out that this plan will put an overburden on the States, and then 
they have to pass it on in fees to the others.
  Unfortunately, it is a terrible bill. I urge my colleagues to vote 
``no.''
  Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Arkansas (Mr. Hill), a member of the Financial Services Committee.
  Mr. HILL. Mr. Speaker, I thank my chairman.
  Mr. Speaker, I rise in strong support of this bill sponsored by my 
friend, Representative Sean Duffy.
  He has worked tirelessly in crafting a solution here, along with 
Representative Luetkemeyer, Representative Ross, and our full committee 
chairman, Mr. Hensarling.
  While the National Flood Insurance Program provides needed insurance 
coverage, it has numerous problems as currently constructed, and the 
21st Century Flood Reform Act seeks to implement much-needed reforms in 
this program.

[[Page H9230]]

  In addition to reauthorizing the flood program for 5 years, this bill 
provides increased transparency to the public, provides more 
information to people living in harm's way about past damages and the 
risk of flooding, ensures mapping is timely and accurate, ties rates to 
risk, gives consumers greater choice in flood insurance options, and 
incentivizes mitigation and risk reduction.
  Currently, in Arkansas, we have one private insurer that offers flood 
insurance. A second underwriter is near approval by our Insurance 
Commissioner Allen Kerr.
  The benefits to the consumer through private insurance are 
significant, as noted by the Milliman study.
  For example, one private insurer in Arkansas covers up to $2 million 
in coverage per occurrence, Mr. Speaker, as opposed to the NFIP, which 
limits coverage to $250,000, across all rating categories at premiums 
substantially below the NFIP.
  Further, this private insurer can offer replacement value, 
reimbursement for living expenses if an individual or family is 
displaced by a flood. The NFIP does not.
  For almost 50 years, the experiment in government-provided flood 
insurance has proven to be ineffective, inefficient, and indisputably 
costly to hardworking taxpayers. The time for action is now.
  Mr. Speaker, I include in the Record USA Today, Washington Post, 
Washington Times, and Chicago Tribune articles.

                  [From the USA Today, Sept. 7, 2017]

                Make Flood Insurance Reflect Actual Risk


after hurricanes, taxpayers can't absorb ever increasing tabs: Our view

       In 1968, in the wake of Hurricane Betsy, Congress decided 
     it had enough. Flooding was destroying too many homes, 
     leaving financial and physical devastation in its wake.
       So lawmakers created the National Flood Insurance Program, 
     a government-run insurance fund for homeowners in flood-prone 
     areas.
       And that's when things got really bad.
       The NFIP has been losing money ever since. The program is 
     nearly $25 billion in the red and is running annual deficits 
     in the range of $1.4 billion. That's because it's a creation 
     of Congress and therefore sets its premiums according to what 
     is politically convenient rather than what is actuarially 
     sound.
       With Hurricane Harvey devastating the Houston area, and 
     Hurricane Irma bearing down on the Southeast coast, the 
     program is certain to take a massive loss this year.
       What's worse, the NFIP's woes are self-generating. Because 
     the premiums are well below what should be charged, this 
     effectively subsidizes construction in flood-prone areas. And 
     that means its losses grow as more flood-prone land is 
     developed.
       Hurricane Katrina, which ravaged the Gulf Coast in 2005, 
     exposed just how costly and counterproductive the program had 
     become. In 2012, after years of debate, Congress enacted a 
     law that made flood insurance rates more reflective of actual 
     risks and expanded the areas considered flood-prone.
       This generated Category 3 blowback from homeowners and the 
     real estate lobby, and in 2014 Congress passed another law 
     undoing much of the first.
       Now, with catastrophic losses mounting and sea levels 
     rising, it's time to revisit the issue.
       Making federal flood insurance more reflective of reality 
     would only go so far in dealing with the problem of building 
     in flood-prone areas. That's because many homeowners don't 
     have flood insurance and because much of the damage that the 
     government eventually pays for is not covered by the program. 
     (Private insurance typically covers damage from wind but not 
     water.)
       With Katrina, for instance, the flood insurance payout was 
     $16.3 billion. But Congress passed supplementary spending of 
     more than $100 billion to provide intensive relief and 
     temporary housing, as well as fix broken levies.
       With Harvey and Irma, the federal tab beyond of flood 
     insurance is likely to be even higher. Only an estimated 20% 
     of homeowners in the area affected by Harvey even bothered 
     with flood insurance, a number that has been dropping in 
     recent years. But making flood insurance reflect actual risks 
     is a vital first step in coming to grips with reality.
       In the past several decades, Americans have flocked to 
     coastal communities, many of them in parts of the country 
     prone to hurricanes. With the hit to taxpayers growing and 
     the danger increasing, restraint--even some reversal--of this 
     trend is needed.
       While people in the hurricane zones deserve disaster 
     assistance and the nation's sympathy, taxpayers can't simply 
     absorb ever increasing tabs for flood losses. The government 
     needs policies that encourage people to build their homes in 
     safer places. Harvey and Irma are just the latest sobering 
     wake-up calls with that message.
                                  ____


               [From the Washington Post, Aug. 30, 2017]

               After Harvey, Flood Insurance Needs Reform

       Congress must be generous in helping to repair the damage, 
     to lives and to property, from Hurricane Harvey. The full 
     extent of the destruction may not be known for a long time 
     but is evidently catastrophic, just as the damage wrought by 
     Katrina and Sandy was. Even as they demonstrate that they 
     have a heart, lawmakers must also show that they have some 
     brains. Specifically, the United States is long overdue for 
     smart reforms to one of the major government institutions 
     designed to help people cope with the risk of natural 
     disaster: the National Flood Insurance Program (NFIP), which 
     has underwritten a total of 5 million policies providing 
     homeowners and some businesses $1.2 trillion in coverage.
       Now almost half a century old, the NFIP grew out of what 
     was, at the time, a basic reality of the insurance business: 
     Flooding risks were actuarially imponderable, so insuring 
     against them was uneconomic for the private sector, 
     especially in places such as the hurricane-prone Gulf of 
     Mexico. To fill the gap, the federal government offered 
     coverage on two conditions: that local communities would take 
     appropriate land-use and other measures to prevent 
     development in risky low-lying areas; and that homeowners 
     would pay actuarially sound premiums.
       Elegant in theory, the plan gradually succumbed to real 
     estate interests, with the result that flood insurance 
     enabled rather than managed development along coasts and in 
     other flood-prone areas--ultimately putting more people and 
     property at risk than might otherwise have been the case. As 
     it happens, well-to-do people benefit disproportionately from 
     this program; they're the ones who tend to build big houses 
     on the beach. The NFIP has spent many millions of dollars to 
     repair properties that have been repeatedly flooded.
       Prior to Katrina, the NFIP was nevertheless generally able 
     to pay for coverage through the premiums it collected. 
     Massive losses from that storm and Sandy, however, have 
     driven it into de facto bankruptcy; the program has been 
     forced to borrow more than $24 billion from the treasury to 
     pay claims, a debt that was nearly unpayable even before 
     Harvey hit. At the moment, the program has $1.7 billion on 
     hand, plus $5.8 billion left on its line of credit with the 
     Treasury--and some 373,000 policyholders in the Harvey flood 
     zone who will expect to get paid.
       Coincidentally, the program is due for reauthorization on 
     Sept. 30. Ideally, this deadline would galvanize Congress to 
     ensure enough money is available to pay current commitments, 
     while reforming NFIP for the future. What's needed are 
     tougher flood-risk mitigation requirements, more realistic 
     premiums and encouragement for private-sector involvement in 
     the business, based on modern technology that may enable 
     insurance companies to underwrite risks they could not have 
     underwritten in the 1960s.
       Recent history, alas, doesn't make us optimistic: Congress 
     did reform the program on a bipartisan basis in 2012, only to 
     see much of that undone under pressure from coastal-state 
     lawmakers in 2014, after Sandy. ``There is a tide in the 
     affairs of men, which taken at the flood, leads on to 
     fortune,'' Shakespeare wrote. Congress, though, tends to go 
     with the political flow.
                                  ____


               [From the Washington Times, Sept. 6, 2017]

                Fixing Flood Insurance in Harvey's Wake


         private insurers could help in matching cost and risk

       Hurricane Harvey took the most devastating flooding in the 
     city's history to Houston, and the cost of repairing the 
     damage will be astronomical. Sadly, the federal flood 
     insurance program is already underwater and Harvey will only 
     add to the flood of red ink. It's clear that Congress must 
     reform the program so the premiums property owners pay more 
     closely reflect the flood risk. Until that happens, nature's 
     frequent fury will continue to undermine the finances of 
     everyone.
       With the angry water from the Category 4 hurricane damaging 
     200,000 Houston-area homes and business firms, early 
     estimates place the cost of restoration as high as $190 
     billion. That would eclipse the $108 billion loss in the 2005 
     Hurricane Katrina and Superstorm Sandy in 2012. President 
     Trump expects Congress to quickly approve a $7.9 billion down 
     payment for emergency relief.
       The National Flood Insurance Program, designed to wield the 
     financial muscle of the federal government to protect flood-
     prone property, has proved to be a money sieve. It covers 
     about 5 million flood-prone properties nationwide, worth 
     about $1.2 trillion, and collects about $3.5 billion annually 
     in premiums. The program was $25 billion in the red before 
     Harvey hit--a clear indicator that overall, property owners 
     who are required to carry flood insurance are not paying for 
     the risk.
       Among the existing program's shortcomings are its policy of 
     grandfathering older structures built in low-lying regions 
     before accurate floodplain mapping began, encouraging owners 
     to renovate rather than demolish. Between 1978 and 2004, 
     these risky properties comprised 1 percent of the program's 
     insured properties but accounted for 38 percent of the damage 
     claims, according to the Government Accountability Office. 
     The federal program is subsidizing insurance

[[Page H9231]]

     for expensive waterfront property along the Southeastern 
     coastline, favoring the wealthiest homeowners.
       Congress has made several attempts to put the insurance on 
     a sustainable financial footing, without success. The program 
     will expire at the end of this month, which offers 
     legislators an opportunity to resolve the unintended 
     consequences of the program.
       Several constructive bills were reported out of the House 
     Financial Services Committee in June. Among the proposals are 
     provisions giving more leeway to private insurers who 
     currently offer only federally approved policies. Doing so 
     would allow insurers to set premiums tailored to individual 
     properties, resulting in a closer match of insurance cost and 
     flood risk. Other provisions would limit claim payments for 
     repeatedly flooded properties and require the use of 
     replacement cost in setting insurance rates.
       The House is seeking a five-year reauthorization of the 
     National Flood Insurance Program and the Senate version calls 
     for a 10-year term to ensure continuity. Both versions back 
     provisions to allow a gradual increase of private-sector 
     involvement in flood insurance. It's an idea endorsed by the 
     free-market Cato Institute, which says ``the ideal `reform' 
     to the [program] would be to fully privatize flood insurance. 
     That would be more likely to fix the system in a way that 
     would limit the long-run government liability than any 
     alternative legislative approach.'' Allowing private insurers 
     to have a larger role in future flood protection is sensible.
       No one could have foreseen the once-in-a-lifetime deluge 
     that swamped Houston, but actuaries make their bones 
     calculating risk, including in their calculations such 
     unpredictable natural disasters as tornadoes and earthquakes. 
     Insurance premiums undistorted by Washington rules would give 
     consumers a clearer picture of flood hazards, helping them 
     avoid the mistake of building in the path of storms like 
     Hurricane Harvey. With monster storm Irma bearing down on 
     Florida, the need is urgent for Congress to safeguard 
     Americans from future property loss and new heartbreak.
                                  ____


               [From the Chicago Tribune, Sept. 7, 2017]

          The Folly of Paying Americans To Live in Harm's Way

       In the aftermath of Hurricane Harvey's hit on Texas, and 
     with Hurricane Irma threatening Florida, let's all 
     acknowledge one reason for the vulnerability of Americans who 
     live in low-lying coastal regions of the Sun Belt: The 
     federal government has been paying people to locate there.
       Not explicitly, of course. But an abundance of inexpensive 
     housing is a big attraction. And a big factor in the low cost 
     of housing in the Houston area is that developers are free to 
     build almost anywhere, including marshy, low-lying areas 
     where land is cheap.
       The chance of being swamped deters some people, but the 
     government offers flood insurance to pay for repairing and 
     rebuilding. The owners of a Houston home that flooded 16 
     times in 18 years got more than $800,000 in payments--for a 
     house worth just $115,000.
       The folly of the government's flood insurance program has 
     been evident for decades, and some Midwestern communities 
     have been in on the action. We've written about how federal 
     flood insurance has serially benefited many of those who 
     refuse to move from river flood plains, sometimes to a fault. 
     After the Mississippi River flood of 1993, one Grafton, Ill., 
     resident explained to a reporter that he had collected 
     $24,000 in federal insurance for damage to his small house 
     from floods in 1979, 1982, 1986 and 1992. For '93, he 
     expected an additional $32,000. His total insurance premiums 
     since buying the house in 1975: $6,000.
       Houston, according to a new study by the National Wildlife 
     Federation, accounts for more than half of all the properties 
     that are flooded and paid for over and over. It has ``managed 
     to host three `500-year floods' in the past three years,'' 
     notes Michael Grunwald of Politico. Each one costs taxpayers 
     large sums. Yet development in these precarious spots 
     continues apace.
       ``Why are we writing flood insurance (policies) for new 
     construction in flood zones?'' asks Craig Fugate, who headed 
     the Federal Emergency Management Agency in the Obama 
     administration. ``Think about it: If you're going to build a 
     new structure in the flood zone, the private sector can 
     insure it. And if they can't insure it, then why is the 
     public subsidizing the risk?''
       It's a big subsidy. Thanks to past storms, the flood 
     insurance program has a $25 billion deficit. The 
     Congressional Budget Office found that coastal counties at 
     risk from tropical storms make up just 10 percent of all the 
     counties with federal flood insurance policies--but generate 
     75 percent of the claims and most of the deficit.
       So why is the public subsidizing the risk in these places? 
     Because the people living there, the politicians they elect, 
     the businesses they patronize and various interest groups 
     (such as homebuilders and the real estate industry) have 
     strong stakes in preserving this program. They've been able 
     to prevent the sort of reforms needed to make it actuarially 
     sounder and closer to self-sustaining.
       In 2012, Congress passed a modest package of sensible 
     changes that would have raised costs to the flood-prone. But 
     two years later, feeling the political heat, lawmakers 
     backtracked.
       Homeowners located in areas that are expected to flood 
     every 100 years are required to buy flood insurance if they 
     want federally insured mortgages. But they pay rates far 
     lower than the risks warrant.
       That gap deprives builders of incentives to stay out of 
     low-lying areas that are vulnerable to flooding--or to 
     elevate structures to keep them dry when the waters rise. It 
     also promotes the destruction of wetlands that could reduce 
     flooding. Oh, and it helps to tilt migration toward 
     vulnerable coastal regions like those of Texas and Florida.
                                  ____

  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Texas (Mr. Al Green), the ranking member of the 
Oversight and Investigations Subcommittee on the Financial Services 
Committee.
  Mr. AL GREEN of Texas. Mr. Speaker, I thank the ranking member, and I 
thank the chair of the committee as well.
  Mr. Speaker, I am opposed to the legislation. I am opposed to it 
because it does not give hardworking Americans the same consideration 
that we will accord persons who are making billions and we will accord 
corporations.
  Corporations are going to get great tax cuts, billionaires are going 
to get tax cuts. We will eliminate the estate tax, we will eliminate 
the AMT for billionaires, but we are not going to give hardworking 
Americans the opportunity to get the relief that they need with 
reference to the $20 billion worth of debt that the NFIP currently has.
  If we don't eliminate that debt now, premiums will go up on 
hardworking Americans. Hardworking Americans won't be able to afford 
premiums, and many of them won't be able to afford homes. This is not 
the way to treat people who work hard and pay their taxes.
  If we can give tax breaks to corporations and billionaires, we can 
afford to reduce this debt on the NFIP so that hardworking Americans 
can afford homes. It really is that simple.
  Five years without another bill: this is our last chance. We can't 
pass this chance up so that we can take care of billionaires and 
corporations at the expense of hardworking Americans.
  Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Minnesota (Mr. Emmer), a hardworking member of the Financial 
Services Committee.
  Mr. EMMER. Mr. Speaker, I rise in support of the 21st Century Flood 
Reform Act, which will reauthorize and reform our National Flood 
Insurance Program.
  The NFIP provides important relief. Millions of Americans rely on 
this program to provide coverage when disaster strikes. The nearly 50-
year-old NFIP program, however, is in desperate need of reform.
  Today's legislation will not only reauthorize the program for 5 
years, it will take steps to better align premium rates to risk, 
improve FEMA's mapping and appeals process, and begin to correct the 
way the NFIP manages what are known as repetitive loss properties.
  Most importantly, H.R. 2874 lays the groundwork for a private flood 
insurance marketplace to take hold, which will improve the fiscal 
stability and solvency of the NFIP for future generations to come. This 
bill is a good start, but these reforms must continue to be built upon 
in the years ahead.
  I am thankful for the hard work of Chairman Hensarling, Housing and 
Insurance Subcommittee Chairman Duffy, and the entire Financial 
Services Committee staff for working to get this bill to the floor 
today.
  As many continue to rebuild their lives following the devastation of 
Harvey, Irma, Sandy, and others, we need a National Flood Insurance 
Program that stimulates choice and encourages proactive behaviors to 
better protect our citizens.
  Mr. Speaker, again, this legislation is a good start. I encourage all 
of my colleagues to support this bill.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Florida (Mr. Crist), a leading voice on flood 
insurance and climate issues and a member of the Financial Services 
Committee.
  Mr. CRIST. Mr. Speaker, I want to thank the ranking member for her 
leadership.
  Mr. Speaker, I rise today in strong opposition to this bill. We must 
get flood insurance right, and that starts with affordability. If 
families can't afford insurance, they simply will not buy it.

[[Page H9232]]

  In my home State of Florida, the number of NFIP policies has dropped 
15 percent since 2012, when Congress started raising premiums. If you 
don't think the government should be involved in flood insurance, maybe 
that is good news, maybe that is the goal here, but not for the good of 
the taxpayer, when families who can't afford coverage must turn to FEMA 
after a disaster.
  The bottom line is that unaffordable insurance will fail. This bill 
makes flood insurance less affordable, hiking premiums, surcharges, as 
well as fees. Beyond that, this bill would decrease access to coverage 
for vulnerable families, forcing them into a private market that does 
not exist.
  Yes, we absolutely need 21st century flood reform. Our climate is 
changing, sea levels are rising, floods are getting worse, and sticking 
our heads in the sand will only make solutions that much more 
difficult.
  This bill leaves behind the best reform ideas from both political 
parties, like better mapping, as well as mitigation.
  Those who have lived through natural disasters know you can't stop 
the catastrophic force of Mother Nature, but you can prepare.
  I urge my colleagues to reject this ideological exercise and put 
people over politics. Let us come together and pass real, sustainable 
reform for a strong, affordable National Flood Insurance Program.
  Mr. Speaker, I include letters of opposition in the Record from the 
Pinellas County Board of County Commissioners and the City of 
Clearwater.
                                                  Pinellas County,


                                Board of County Commissioners,

                                 Clearwater, FL, November 8, 2017.
     Hon. Charlie Crist,
     House of Representatives, Washington, DC.
       Dear Charlie: On behalf of Pinellas County, Florida, we 
     urge you to oppose the 21st Century Flood Reform Act, H.R. 
     2874. This bill, which is the compilation of the seven-bill 
     package approved by the House Financial Services Committee 
     this summer, is detrimental to Pinellas County residents and 
     local governments. Despite the minor changes proposed in the 
     amendment, the bill will increase costs for National Flood 
     Insurance Program (NFIP) policyholders, create unfunded 
     mandates by increasing regulatory burdens and 
     responsibilities for local governments, and lead to fewer 
     participants in the NFIP, which will undermine the integrity 
     of the program. We strongly urge you to oppose the bill.
       The bill would increase premiums on homes built prior to 
     the first flood map by a minimum of 6.5% each year, with 
     properties that have made two or more claims subject to even 
     higher rate increases. In addition to this increase, all 
     policy holders would be assessed new and increased fees and 
     surcharges with some of these fees, such as the reserve fund 
     fee, increasing each year. As these increased costs are 
     passed on to policyholders, the bill acknowledges that an 
     affordability assistance program is needed, however it 
     delegates that authority to states and requires it to be 
     financed through additional charges on the other 
     policyholders in the state, creating an even greater 
     financial burden. These increased costs along with the new 
     restrictions in the bill on types of properties that can 
     obtain coverage through the NFIP will undermine participation 
     in the program, further destabilizing it. The bill does 
     nothing to invest in new flood mapping and technology, which 
     would result in more accurate maps and does not sufficiently 
     invest in mitigation. We ask for your continued assistance in 
     ensuring that this bill does not become law.
       Additionally, we want to thank you for cosponsoring H.R. 
     3285, the Sustainable, Affordable, Fair and Efficient (SAFE) 
     NFIP Act. The legislation is significantly more consumer-
     friendly than the House Financial Services Committee 
     approach. The SAFE NFIP Act includes provisions to limit 
     premium rate increases, create means-tested mitigation and 
     affordability provisions, expand the Increased Cost of 
     Compliance program, develop accurate flood maps, and 
     emphasize pre-disaster mitigation programs.
       Again, thank you for your continued assistance in ensuring 
     that legislative efforts detrimental to Pinellas County's 
     over 130,000 policyholders are not enacted into law. We value 
     your support and thank you for cosponsoring H.R. 3285. Please 
     do not hesitate to contact me if I can provide additional 
     information or answer questions.
           Sincerely,
                                                    Janet C. Long,
     Chair, Pinellas County Commission.
                                  ____



                                           City of Clearwater,

                                 Clearwater, FL, November 7, 2017.
     Hon. Charlie Crist,
     House of Representatives,
     Washington, DC.
       Dear Representative Crist: On behalf of the City of 
     Clearwater, Florida, we urge you to oppose the 21st Century 
     Flood Reform Act, H.R. 2874. This bill, which is the 
     compilation of the seven-bill package approved by the House 
     Financial Services Committee this summer, is detrimental to 
     Clearwater residents and to Florida local governments. 
     Despite the minor changes proposed in the amendment, the bill 
     will increase costs for National Flood Insurance Program 
     (NFIP) policyholders, create unfunded mandates by increasing 
     regulatory burdens and responsibilities for local 
     governments, and lead to fewer participants in the NFIP, 
     which will undermine the integrity of the program. We 
     strongly urge you to oppose the bill.
       The bill would increase premiums on homes built prior to 
     the first flood map by a minimum of 6.5% each year, with 
     properties that have made two or more claims subject to even 
     higher rate increases. In addition to this increase, all 
     policy holders would be assessed new and increased fees and 
     surcharges with some of these fees, such as the reserve fund 
     fee, increasing each year. As these increased costs are 
     passed on to policyholders, the bill acknowledges that an 
     affordability assistance program is needed, however it 
     delegates that authority to states and requires it to be 
     financed through additional charges on the other 
     policyholders in the state, creating an even greater 
     financial burden. These increased costs along with the new 
     restrictions in the bill on types of properties that can 
     obtain coverage through the NFIP will undermine participation 
     in the program, further destabilizing it. The bill does 
     nothing to invest in new flood mapping and technology, which 
     would result in more accurate maps and does not sufficiently 
     invest in mitigation. We ask for your continued assistance in 
     ensuring that this bill does not become law.
       Additionally, we want to thank you for cosponsoring H.R. 
     3285, the Sustainable, Affordable, Fare and Efficient (SAFE) 
     NFIP Act. The legislation is significantly more consumer-
     friendly than the House Financial Services Committee 
     approach. The SAFE NFIP Act includes provisions to limit 
     premium rate increases, create means-tested mitigation and 
     affordability provisions, expand the Increased Cost of 
     Compliance program, develop accurate flood maps, and 
     emphasize pre-disaster mitigation programs.
       Again, thank you for your continued assistance in ensuring 
     that legislative efforts detrimental to Clearwater's over 
     11,000 policyholders are not enacted into law. We value your 
     support and thank you for cosponsoring H.R. 3285. Please do 
     not hesitate to contact the city should you need additional 
     information, and with warm, personal regards, I am
           Sincerely,
                                               George N. Cretekos.

  Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from New York (Mr. Zeldin), a member of the Financial Services 
Committee.
  Mr. ZELDIN. Mr. Speaker, I rise in strong support of this 
legislation, which contains critical reforms that protect access to 
affordable insurance, improves the way policyholders are treated when 
filing a claim, and places the National Flood Insurance Program on the 
path towards fiscal solvency.
  Included in this legislation is the bipartisan bill I introduced with 
Congresswoman Carolyn Maloney that provides a credit to NFIP 
policyholders who reduce their flood risk through mitigation. 
Homeowners who do the right thing and invest in mitigation activities 
deserve a strong return on their investment in the form of lower NFIP 
premiums.
  On Long Island, where the coastal economy is our main economy, 
protecting life and property from flood damage is a top priority.
  I look forward to working with all my colleagues in Congress to get 
this bill passed in the Senate and sent to the President's desk without 
delay.
  I am proud to be a cosponsor of this essential legislation, grateful 
for Chairman Hensarling's and Chairman Duffy's leadership on this 
issue, and I urge all of my colleagues to vote ``yes.''
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Louisiana (Mr. Richmond), the chair of the 
Congressional Black Caucus and a long time leader on flood insurance 
issues.
  Mr. RICHMOND. Mr. Speaker, I want to thank Congresswoman Waters, the 
ranking member. Oftentimes in this body, we talk about leadership. 
Leadership is what Congresswoman Waters did after Hurricanes Katrina 
and Rita; but, more importantly, 4 years ago, when the threat of new 
flood policies were going to make people pay the cost of their home 
every 5 years, we were talking about paying 20 percent of the value of 
your home in flood insurance every year, she came down to Louisiana and 
met with Louisiana citizens. She didn't come to the urban areas, 
although she passed through, but she went to the rural areas, talked to 
middle-income families to figure out how flood insurance reform would 
hurt them.

[[Page H9233]]

  What she found out is that it was going to cause more families to 
just turn in the keys to their house and give their homes back to the 
mortgage company or declare bankruptcy so that they can just get by.
  This bill is a lot better than the bill that was in committee, and I 
want to thank the chairman and my colleagues from Louisiana, Mr. 
Scalise and Mr. Graves, for making it a better bill. But when we are 
talking about homeowners, the most responsible people in society who 
have now purchased their piece of the American Dream, when you have 
people who played by the rules, bought the home of their dreams, you 
don't change the rules halfway to say: Hey, we know this was the rule 
when you bought the House, but now it has changed, and all of a sudden 
that $500 in insurance you pay a month is now $1,500.
  That is not responsible, it is not fair, and we are picking on 
homeowners.
  I would just say to my friends on the other side of the aisle that 
the bill is better, but it is not worthy of the American taxpayer or 
the American homeowner.
  We keep talking about the private market. They are going to pick and 
choose where they want to insure, and then, all of a sudden, you are 
left with a high-risk pool, where homeowners who work every day are 
stuck with costs that they just can't afford.
  I would simply say that this is something we really could do, in this 
atmosphere, in a bipartisan way, because it is the right thing to do.
  With all the good things in the bill, the problems--the bad outweighs 
the good.
  I would just remind my friends on the other side of the aisle, the 
community that you save may be your own.
  Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Louisiana (Mr. Scalise), the majority whip, who has a slightly 
different message.
  Mr. SCALISE. Mr. Speaker, I thank my colleague from Texas, Chairman 
Hensarling, for yielding.
  Mr. Speaker, I rise in support of this bill that, really, if you look 
at what we are trying to achieve here, it is a few things, but the main 
two things are to give further reforms and protections to the taxpayers 
of this country while also making sure that we are protecting and 
giving certainty to the policyholders of the National Flood Insurance 
Program; the fact that this is a 5-year reauthorization; the fact that 
we were able to protect the grandfathering provisions that are so 
important to families who have played by the rules, and if the rules 
are going to change, it is not fair that you would hold something 
against somebody that was legal in the past; the fact that this bill 
has important reforms, like Ross-Castor.
  We all talk about the fact that NFIP is the only place for most 
families to go that want to buy flood insurance. We need to develop a 
private marketplace, Mr. Speaker, and, frankly, for most families, it 
just doesn't exist. Those Ross-Castor provisions are so important to 
finally help jump start that process.
  This program has had its own financial difficulties, and this bill 
helps strengthen the program, helps give some certainty, and, frankly, 
it gives some provisions in the bill that are going to make it better 
for families who rely on this program, and the taxpayers of this 
country, who help make sure that we have a stable economy.
  It is important for homeownership, it is important that we maintain 
those provisions on grandfathering that were so important to our 
communities, and it is important that we pass this bill.
  I am glad that the House is taking this action today.
  Mr. Speaker, again, I commend Chairman Hensarling and Congressman 
Duffy for their hard work, and all the other Members who played such an 
important role in getting us to this point.

                              {time}  1600

  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 3 minutes to 
the gentleman from New Jersey (Mr. LoBiondo), a senior member of the 
Transportation and Infrastructure Committee, and someone who has been 
working hard to try and have a bipartisan effort on this bill.
  Mr. LoBIONDO. Mr. Speaker, I thank my colleagues, Ms. Waters, Mr. 
Hensarling, and Mr. Duffy, for their work on this bill, and especially 
to my good friend, Steve Scalise.
  I know there was an effort to do this the right way, but I rise in 
opposition for a couple of reasons. First, I am disappointed. I am 
disappointed because we, in this body, had an opportunity to have a 
bipartisan bill that would have probably generated more than 400 votes, 
that we would have had a big high-five moment, and we could have moved 
forward. The Senate would have taken it. The President would have taken 
it.
  But now we have a situation that makes me angry--angry because we are 
picking winners and losers, angry because the misery index for some 
Members is more important than the misery index in my district or the 
Northeast.
  Five years ago, we were about a month after Superstorm Sandy. We had 
political hand-to-hand combat to get what the rest of the Nation has 
gotten almost automatically with every natural disaster in the whole 
course of our Nation's history. But no, Superstorm Sandy, there had to 
be an offset. We barely got the help we needed.
  This is all tied in together because we still have people suffering 
in New Jersey and New York and the Northeast from the aftermath of 
Sandy, and it is tied into this with Federal flood insurance. It is 
critically important.
  And why should it be that the concerns of my district and the people 
who I represent have any less of an influence on what happens here?
  I am angry, and I am disappointed that I have to fight with my own 
party on these issues. I am not at all sorry to stand up as strongly as 
I can for the constituents who deserve this--hardworking people who are 
trying to stay in their homes.
  I know the program has problems. I know we have to do this in a 
different way, and we have had an opportunity to do it in a bipartisan 
way, where all of our constituents should have been helped, instead of 
picking winners and losers.
  I am sick and tired of having to defend the people in my district and 
the people in the Northeast from policies that don't mean the right 
thing for us.
  Please do the right thing; vote ``no.'' Let's come back with a bill 
that makes sense.
  Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Georgia (Mr. Loudermilk), another respected member of our 
committee.
  Mr. LOUDERMILK. Mr. Speaker, I also want to thank Chairman Hensarling 
and Chairman Duffy for their tireless work on this bill. They have 
labored endless hours to bring this bill to the floor, and we are very 
appreciative of that.
  Mr. Speaker, the fact that we are here today shows that our 
legislative process is working and that we are doing the challenging 
work the American people sent us here to do, work that isn't always 
easy. Quite often, it is hard, but it is the right thing to do.
  After months of hard work, the Financial Services Committee passed a 
package of bills in June to reform and reauthorize the National Flood 
Insurance Program.
  Mr. Speaker, many of these bills in that package passed with 
unanimous support. You only have unanimous support with strong 
bipartisan support.
  Now, after lengthy negotiations, we are taking up this compromise 
bill that will significantly improve the NFIP and protect America's 
taxpayers. The 21st Century Flood Reform Act will make major strides to 
grow the private flood insurance market and start to put the NFIP on a 
fiscally sustainable path.
  This bill will also implement flood mapping improvements and increase 
transparency and disclosure so policyholders will know the true risk of 
floods at their property.
  The bill also includes an amendment that I introduced with my good 
colleague and dear friend from Georgia, Representative David Scott. The 
NFIP is far too complicated for policyholders, insurers, and mortgage 
lenders, so this amendment, which passed with unanimous support, calls 
for a GAO study on how the program may be simplified and streamlined.
  The NFIP authorization expires on December 8, so I would urge my 
colleagues to join me in supporting this worthy program.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 1 minute to the

[[Page H9234]]

gentleman from New York (Mr. King), a senior member of the Financial 
Services Committee who has worked a long time for bipartisanship on 
reauthorization of the National Flood Insurance Program.
  Mr. KING of New York. Mr. Speaker, I thank the gentlewoman for 
yielding, and I appreciate her courtesy. I did ask my side for time. 
Unfortunately, they had no time available, so I thank the gentlewoman 
for coming to my rescue on this.
  I feel very strongly about this, and I echo the comments of Mr. 
LoBiondo. The premium increase here can have a devastating impact on my 
constituents. Without grandfathering, we would see premiums skyrocket. 
And when Mr. LoBiondo and I tried to ameliorate this by suggesting a 
compromise by putting a $5,000 cap on premiums, we were rejected.
  When Mr. LoBiondo talked about a bias against the Northeast, that 
bias continues today from Sandy. Louisiana, Texas, Florida, Puerto Rico 
all received tax relief following their storms. To this day, voters in 
my district have not received that tax relief; and Mr. LoBiondo's 
district is the same.
  So I am also tired of this regional bias. We, in the Northeast, get 
treated--whether it is on taxes, or whatever it is, we do not get a 
fair shake. Maybe they don't need our votes.
  Well, you are not getting my vote today. I urge Members to vote in 
opposition.
  Mr. HENSARLING. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from New Jersey (Mr. MacArthur), a very hardworking member of the 
Financial Services Committee.
  Mr. MacARTHUR. Mr. Speaker, I also am from the Northeast, from New 
Jersey, and I rise in support of this bill today.
  Five years ago, Superstorm Sandy devastated my district. Ocean 
County, my home, was the epicenter of that storm. You might remember 
the photographs of the iconic Jet Star roller coaster sitting in the 
ocean. That was my district.
  Even today, I have thousands of constituents who are still out of 
their homes. Now, thousands more are experiencing the same thing 
because of Hurricanes Harvey, Irma, and Maria.
  140 million Americans live in coastal counties, and the NFIP has done 
a lot to help with zoning standards, building standards, flood plain 
management standards. It hasn't been run perfectly, but this program is 
desperately needed by people in areas like mine.
  The NFIP has fiscal issues, and this bill seeks to address them. It 
is the only Federal disaster program that actually collects money in 
advance of a disaster.
  When I got on this committee a year ago, I set out on this issue to 
do four things: a long-term reauthorization, improve affordability, 
increase accountability, and enhance mitigation efforts.
  This is a 5-year reauthorization. It reduces the mandatory annual cap 
on premium increases; it brings more accountability, including my 
language to forbid NFIP from hiring disbarred lawyers; and it doubles 
the mitigation coverage from $30,000 to $60,000.
  I urge my colleagues to support this bill.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Massachusetts (Mr. Capuano), a senior member of the 
Committee on Financial Services and a strong progressive leader.
  Mr. CAPUANO. Mr. Speaker, I don't even know if I need 2 minutes.
  Look, this bill has some good things in it. Everybody admits that. It 
does. Like every bill I have ever voted on, there is some good, there 
is some bad. But this bill has more bad in it than good.
  It has some good philosophy that I won't agree with the details. I 
agree we should do something about repetitive loss properties. I think 
everybody agrees with that, but not the draconian measures taken in 
this bill.
  We all agree that we need to help make it a stable fiscal platform, 
but not what this bill does. That is the problem here. This is not a--I 
have seen worse bills. As a matter of fact, I have seen worse flood 
insurance bills, so this, I will have to admit, is an improvement over 
the last horrendous flood insurance bill. But it is not even close yet.
  And the problem here, this is a missed opportunity. Flood insurance 
doesn't need to be partisan. It doesn't need to be based on 
philosophical purity. This is a necessity to many Americans, many 
middle class Americans, and there is no doubt, without winning or 
losing any votes at home, we could work this out if the majority wanted 
to. But you don't.
  You don't want any Democratic votes. Apparently, you don't want all 
the Republican votes. Why? I don't know. Maybe lighting candles at the 
altar of certain philosophies.
  When this bill--not if--when this bill fails in the Senate, you are 
going to find a lot of people over this side who continue to want to 
work with you to come up with a bill we can all embrace. I know that 
will happen, and I look forward to that day.
  This bill isn't it, and everybody here knows it.
  Mr. HENSARLING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Oregon (Mr. Blumenauer), a senior Democrat and leader on environmental 
issues in the House.
  Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy in 
yielding me this time.
  I have enjoyed listening to the debate back and forth. There is no 
area in Congress that I have spent more time on, over the course of the 
last 20 years, than dealing with flood insurance. I was the author of 
the last major piece with our former colleague, Doug Bereuter. I agree 
with much of what was said on both sides.
  There are remaining significant problems. Insurance is not priced 
properly. It is not that it is too expensive or it is too cheap, it is 
not priced properly. We have some winners and losers now, but too many 
people are subsidized by the majority.
  We are not doing all that we can. The Federal Government ends up 
holding the bag for billions of dollars for unnecessary flood damage 
with storm after storm after storm; and, by the way, there are more on 
the way.
  It doesn't have to be this way. Part of the problem is that because, 
inevitably, when we talk about reform, it costs money, and there are 
some people who end up paying more. It is easy not to update the maps. 
It is easy not to have people pay actuarial rates. It is easy not to 
force local governments to do their job and not allow building in 
harm's way.
  I strongly agree that, in times past, low-income and minority people 
were subjected to real problems and more flooding than they should have 
been. But now is the time to try and pivot and do something about it.
  Mr. Speaker, I include in the Record a list of groups that are 
supporting this legislation.

       National Association of REALTORS (NAR), National 
     Association of Home Builders (NAHB), Property and Casualty 
     Insurers Association of America (PCI), American Insurance 
     Association (AIA), Reinsurance Association of America (RAA), 
     Council of Insurance Agents and Brokers (CIAB), National 
     Association of Federally-Insured Credit Unions (NAFCU), 
     Financial Services Roundtable (FSR), Mortgage Bankers 
     Association (MBA), American Land Title Association (ALTA), 
     The SmarterSafer Coalition, National Wildlife Federation 
     (NWF), National Multifamily Housing Council (NMHC), National 
     Apartment Association (NAA), Community Mortgage Lenders of 
     America (CMLA), Commercial Real Estate Finance Council 
     (CREFC), Real Estate Services Providers Council, Inc. 
     (RESPRO), The Real Estate Roundtable, Leading Builders of 
     America, The Manufactured Housing Institute (MHI), Building 
     Owners and Managers Association (BOMA) International.
       The Realty Alliance, Habitat for Humanity, Institute of 
     Real Estate Management (IREM), International Council of 
     Shopping Centers (ICSC), Association of Bermuda Insurers and 
     Reinsurers (ABIR), Wholesale & Specialty Insurance 
     Association (WSIA), Small Business & Entrepreneurship Council 
     (SBE Council), Conservatives for Responsible Stewardship 
     (CRS), Coalition to Reduce Spending, American Consumer 
     Institute, CCIM Institute, Council for Affordable and Rural 
     Housing, NAOIP, The Commercial Real Estate Development 
     Association, National Association of Real Estate Investment 
     Trusts (Nareit), National Affordable Housing Management 
     Association, National Association of Housing Cooperatives, 
     National Leased Housing Association, Taxpayers for Common 
     Sense, R Street Institute, National Taxpayers Union (NTU).

  Mr. BLUMENAUER. Mr. Speaker, the list is an interesting collection. 
It includes environmental groups, consumer groups, housing advocates, 
businesses, fiscal watchdogs, and taxpayer

[[Page H9235]]

advocates. And all of them don't agree with every detail. Many of them 
would identify with some of the debates, but they agree that this bill 
is a step in the right direction, and we should use it.
  What we vote on today--and I hope that it passes, I am going to vote 
for it--is not the last word. As it wends its way through the 
legislative process, if we all do our job of making it better, we can 
have that high-five moment that I think we all look forward to.
  Ms. MAXINE WATERS of California. Mr. Speaker, I reserve the balance 
of my time.
  Mr. HENSARLING. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman 
from Wisconsin (Mr. Duffy), the chairman of the Housing and Insurance 
Subcommittee, and the sponsor of the legislation, the 21st Century 
Flood Reform Act.
  Mr. DUFFY. Mr. Speaker, I want to thank Chairman Hensarling for all 
his good and relentless hard work on this bill. I appreciate his 
tenacity.
  I want to thank Mr. Blumenauer for the comments that he just made. 
The two of us had not worked together on a lot of issues, but this is 
one we saw eye-to-eye, and, through flood, I think we have seen a lot 
of common ground and built a friendship together.
  I actually promised I was going to wear a bike today, and I haven't 
kept my promise. Later today, I will wear that for Mr. Blumenauer.
  But I want to talk about the debate we have had here today. This has 
been an effort at bipartisanship. On the Republican side, I have worked 
with Representatives Graves and Scalise and Zeldin and King and 
LoBiondo and MacArthur trying to bring in their concerns to this 
legislation.
  On the Democrat side, I have worked with Mr. Scott; I have worked 
with Mrs. Maloney, Ms. Velazquez, all concerned about the Northeast and 
the Sandy reforms that were necessary to learn the lessons. We have 
included those reforms in this bill.
  I sat down countless hours with the ranking member. She shared her 
phone number with me. She left me at the dance though, because before 
this thing was done, she walked away. We tried to get a bipartisan 
bill. We worked on this thing together; so to say something other than 
that is just not fair, it is not right. We have tried.
  You might not like the end product, but we have gone a great distance 
to get a bill that everybody can agree on, and I think we are going to 
get that today.

                              {time}  1615

  I want to talk about a few things. We are $25 billion in debt, a 
deficit of $1.5 billion a year. This program is not sustainable. We 
have people who are building homes in harm's way. They get flooded 
multiple times.
  The chairman and I saw a homeowner who was flooded three times in 10 
years. One homeowner let his house burn because he had to go save his 
kids who were getting swept away in floodwaters, and we rebuild those 
homes in the same location and risk the lives of firefighters and first 
responders to go save them. This policy is unacceptable and it is not 
compassionate.
  I hear my friends across the aisle say: You are going to hurt 
homeowners. Their rates are going to skyrocket.
  What? On average, for a year, the price of flood insurance, on 
average, will go up $20, less than $2 a month, and they are screaming 
bloody murder about that? And what do they get for it? I have a list of 
30 things of great reform we get in this bill to help homeowners.
  Yes, highly subsidized properties in a pre-FIRM space are going to 
pay a little more, a little higher escalator, but we spend a billion 
dollars on mitigation helping people flood-proof their homes, helping 
people get bought out of their home and get to higher ground so they 
don't have to live in a home that is continually flooded.
  I don't know if you have lived in a flood home, but it ain't fun. It 
is horrible. Get them out. A billion dollars for that program.
  We help communities with their mapping. We give them options to map, 
and we give them an appeals process in their mapping. Great reform, we 
set up a private market.
  Now, you don't have to take the private market, but you have an 
option to get a private plan that might have a better rate than the 
government offers you. You have a choice--a choice, God forbid--a 
choice that gives you a better price.
  By the way, when we get the private market in, we all float our risk 
to the private sector. When a disaster hits Texas or Florida, it is not 
just the taxpayers who bear all the burden. We have private companies 
in play. That is a great thing. This is a good bill. This is a 
bipartisan bill. Let's stand together and reform a program to help the 
homeowner and our national debt.
  Ms. MAXINE WATERS of California. Mr. Speaker, I yield myself the 
balance of my time.
  Mr. Speaker, let me say to my colleagues on the opposite side of the 
aisle, my chairmen, Mr. Hensarling and Mr. Duffy, we did work very hard 
to try and get a bipartisan bill.
  As I negotiated with them, every time I reached an impasse, I thought 
about Sandy and how hard Democrats had to work to provide support for 
an area that should have gotten the support of everyone in the Congress 
of the United States. However, there was a demand from the opposite 
side of the aisle that it had to be paid for. We worked very hard to 
give them assistance, and they still have not been made whole.
  Every time I reached an impasse, I thought about Louisiana and the 
work that I had done after Katrina and the visits that I have made 
there, the people that I got to know, and what I really have learned to 
understand about affordability.
  Every time I reached an impasse, I thought about Florida, I thought 
about Texas and what has happened recently with these storms.
  Having worked in this way and having been a coauthor of Biggert-
Waters and having been the author of the Homeowner Flood Insurance 
Affordability Act, I think I know something about storms, something 
about the devastation that has been caused to families and communities, 
and I insist on affordability.
  Mr. Speaker, as Democrats and some Republicans have made clear, this 
is a comprehensively bad bill that is harmful for families and 
businesses. In the wake of one of the most disastrous hurricane seasons 
in history, this bill would make flood insurance more expensive, less 
available, and less fair for millions of Americans.
  I have repeatedly stated that affordability is my top priority, which 
is made worse by this bill. Even with the slight revisions that the 
chairman has made, coverage would still be less available, and cherry-
picking by the private sector would be encouraged, putting the 
government on the hook for the riskiest of policies.
  It is important to note that the biggest challenge to the National 
Flood Insurance Program is its massive debt, which the bill only 
addresses by charging hardworking Americans more for their flood 
insurance. That is just not fair.
  We have comprehensive support for this bill from both the private 
sector and from our nonprofits. I don't know about any consumer 
organizations that support this bill, but I do know this. I know that I 
worked very hard to talk about mitigation and how I thought it could be 
a program that the locals could be involved in with the Federal 
Government. I know I worked very hard talking about the repetitive 
occurrences that the chairman was concerned about, but I also offered 
alternatives to what he is advocating.
  I talked about outreach and education to them, about a buyout program 
that they may join with and accept voluntarily. I know that I tried 
everything that I could. I listened to Members from both sides of the 
aisle, and I know that we both wanted to have a comprehensive bill that 
was bipartisan.
  Mr. Speaker, it is unfortunate that we end up with this bad bill. I 
ask for a ``no'' vote on this bill, and I yield back the balance of my 
time.
  Mr. HENSARLING. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, there are a lot of horrific images from Hurricane 
Harvey. We should never forget them. We should look at this image and 
say: Never again.
  Yet I hear from my colleagues: Let's preserve the status quo. Let's 
again subsidize people to live i harm's way.

  I say no, Mr. Speaker. It is time to get these people out of these 
neighborhoods. Let's help them. That is why

[[Page H9236]]

this bill has more money for mitigation and relocation than has ever 
been in any flood insurance reform bill.
  I hear my ranking member say that she cares about affordability. Then 
let's give people options.
  I hear from people who say: NFIP would have cost me $2,700 a year, 
but I was able to find private coverage for $718.
  Here is another one: I have benefited from switching to private 
market flood insurance from FEMA. I save about $1,000 a year.
  Let's save money. Let's save premiums. Let's save lives. Let's vote 
``aye'' on the 21st Century Flood Reform Act.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Yoder). All time for debate has expired.
  Pursuant to House Resolution 616, the previous question is ordered on 
the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                           Motion to Recommit

  Mr. PASCRELL. Mr. Speaker, I have a motion to recommit at the desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. PASCRELL. Mr. Speaker, in this form, yes.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Pascrell moves to recommit the bill, H.R. 2874, to the 
     Committee on Financial Services with instructions to report 
     the same back to the House forthwith with the following 
     amendment:
       At the end of the bill, add the following new title:

                       TITLE VII--EFFECTIVE DATE

     SEC. 701. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, each 
     provision of this Act shall take effect on the later of the 
     following:
       (1) The first date by which both the Administrator of the 
     Federal Emergency Management Agency and the Inspector General 
     of the Federal Emergency Management Agency have, 
     independently of each other, submitted written certification 
     to the Congress and caused such certification to be printed 
     in the Federal Register that final resolution has been 
     reached on all claims for losses resulting from Hurricane 
     Sandy of 2012 that were covered by flood insurance made 
     available under the National Flood Insurance Program; or
       (2) The date that such provision would otherwise take 
     effect but for this section.

  Mr. PASCRELL (during the reading). Mr. Speaker, I ask unanimous 
consent to dispense with the reading.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey is recognized for 5 minutes in support of his motion.
  Mr. PASCRELL. Mr. Speaker, this is the final amendment to the bill, 
which will not kill the bill or send it back to the committee. If 
adopted, the bill will immediately proceed to final passage, as 
amended.
  Mr. Speaker, this amendment would require the FEMA Administrator and 
the DHS inspector general to certify that all claims for victims of 
Superstorm Sandy are addressed before this bill takes effect.
  Many in this Chamber should recall 5 years ago Superstorm Sandy 
caused widespread destruction throughout New Jersey and many States in 
the Northeast. Superstorm Sandy barreled up the East Coast, bringing 
death and destruction. Over 200 people in the United States and the 
Caribbean died, and the storm caused more than $71 billion in damage. 
Sandy swamped coastline communities. It knocked out power for millions 
of people and businesses, flooded public transit systems, and set 
neighborhoods ablaze.
  Many Sandy victims have begun down the long road of recovery, but 5 
years later, many victims and communities are still waiting for relief. 
They are still struggling to rebuild their homes and their businesses. 
It took years for the hardest hit communities in my district, Little 
Ferry and Moonachie, to receive the relief to build key pieces of 
public infrastructure.
  In New Jersey, over 1,200 property owners are still moving through 
the recovery programs. Approximately 900 are still not back in their 
homes. Of all Sandy victims, there are over 2,000 people still awaiting 
final review of their flood insurance claims.
  After victims faced delay after delay to start the claims process 
with FEMA, they then struggled with insurance companies which were and 
continue to be a major source of strife for Sandy victims.
  Many of the residents of New York and New Jersey saw insurers 
intentionally paying out too little on their claims, which in many 
cases was not enough to cover the cost of repairing the damage. We 
heard stories of insurance adjusters making significant errors on 
reports because they misunderstood technical definitions, 
underestimated the extent of the damage done, or intentionally 
misrepresented the cause of the damage.
  This is all documented.
  The problems were so significant, we had to force FEMA to reopen the 
claims process for thousands of homeowners. Some ended up getting 
additional money. I have heard from many who say that it is still not 
enough to cover their recovery costs.
  Mr. Speaker, on the heels of Hurricanes Harvey and Maria, we are now 
tasked with reauthorizing the National Flood Insurance Program. To 
ensure these victims do not face the same troubles as those in my 
State, we need to apply the lessons we learned from Superstorm Sandy in 
this reauthorization. Tragically, this bill does not.
  We should not allow companies who profited off Superstorm Sandy 
victims while committing widespread fraud and failing to meet their 
basic obligations under the National Flood Insurance Program to sell 
their own flood insurance.
  We should not reauthorize the program without reforming the claims 
process to ensure technical definitions of ``earth movement,'' 
``basement,'' and ``mold damage'' do not cause delay for victims 
receiving their fair share.
  This bill should ensure that victims have the time they need to file 
an appeal and require FEMA to respond so victims are able to move the 
claims process forward.
  I submitted several amendments to the Rules Committee with my 
colleague Representative Frank Pallone of New Jersey to address these 
issues and the lessons we learned from Sandy. We were denied a vote.
  At the very least, Mr. Speaker, we must ensure that FEMA certifies 
that all victims from Superstorm Sandy have had action taken on their 
case before we make more changes to the National Flood Insurance 
Program. That is what a vote in favor of this recommit would do. Simply 
put, it would delay the implementation of the bill until the FEMA 
Administrator and the DHS inspector general certified that all claims 
for Superstorm Sandy have been addressed.
  In order to support Superstorm Sandy victims, I encourage my 
colleagues to vote in support of this recommit, because a ``no'' vote 
is a vote against the victims of Superstorm Sandy, no doubt about it, 
who, for 5 years have still not been made whole.
  Mr. Speaker, I yield back the balance of my time.
  Mr. HENSARLING. Mr. Speaker, I claim the time in opposition.
  The SPEAKER pro tempore. The gentleman from Texas is recognized for 5 
minutes.
  Mr. HENSARLING. Mr. Speaker, first, I have some good news for my 
friend on the other side of the aisle. I would have him pay very 
careful attention to title VI of the 21st Century Flood Reform Act. It 
has everything to do with the whole Sandy appeals process. We have 25 
pages of reforms dealing with what the gentleman was describing, 
including Section 601, Penalties for Fraud and False Statements in the 
National Flood Insurance Program.
  And, indeed, after Sandy, many of the policyholders were wronged and 
there was much that we learned from that experience, and we tried to 
listen very carefully to a number of our colleagues from New Jersey and 
New York and, indeed, took many of the provisions which they have 
suggested.

                              {time}  1630

  The gentleman from New Jersey, indeed, has some very legitimate 
issues and concerns. Many of them, I hope and trust, have been 
addressed in this

[[Page H9237]]

bill. It is not too late. I would urge the gentleman to look at that 
title IV of the bill and perhaps he would be encouraged to support it.
  Otherwise, Mr. Speaker, I must urge rejection of the motion to 
recommit because, as you heard from the gentleman from New Jersey, he 
says it is all about delay. We can't delay getting people out of harm's 
way. We can't delay getting people out of neighborhoods that have 
flooded four, five, six, seven times in the last 8 years.
  For those who can't afford flood insurance, we can't delay getting 
them market alternatives, where, in the 2 percent of the market that 
exists today, particularly in Pennsylvania, there are people that are 
not just saving hundreds of dollars, Mr. Speaker, but even thousands of 
dollars. We can't delay.
  We know that this is a program that is unsustainable. It is a 
bankrupt program that is being funded, regrettably, by a bankrupt 
nation. Taxpayers are on the hook for $1.2 trillion and an annual 
deficit of $1.5 billion of actuarial deficit a year.
  This thing isn't just broke, Mr. Speaker, it is bailout broke. We 
can't delay. We can't delay trying to put this back on a path of 
sustainability so the next time we have a serious storm or superstorm, 
we want there to be funds available to actually pay claims.
  So, no, Mr. Speaker, we cannot delay. We cannot delay, and we cannot 
continue to do what we have done in the past in these repetitive loss 
areas and have our hands unclean by putting people back in the exact 
same neighborhoods that haven't just caused the loss of their property, 
but one day may very well cost the loss of their lives. We cannot 
delay.
  Mr. Speaker, I urge a rejection of the motion to recommit, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. PASCRELL. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, this 15-
minute vote on the motion to recommit will be followed by 5-minute 
votes on:
  Passage of the bill, if ordered; and
  Adoption of the conference report to accompany H.R. 2810.
  The vote was taken by electronic device, and there were--yeas 190, 
nays 236, not voting 7, as follows:

                             [Roll No. 629]

                               YEAS--190

     Adams
     Aguilar
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Costa
     Courtney
     Crist
     Crowley
     Cuellar
     Cummings
     Davis (CA)
     Davis, Danny
     DeFazio
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Engel
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gomez
     Gonzalez (TX)
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Napolitano
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Perlmutter
     Peters
     Peterson
     Pingree
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                               NAYS--236

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Cheney
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Culberson
     Curbelo (FL)
     Curtis
     Davidson
     Davis, Rodney
     Denham
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gianforte
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Handel
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jones
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marino
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Newhouse
     Noem
     Norman
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Reichert
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                             NOT VOTING--7

     Bridenstine
     Dent
     Johnson, Sam
     Maloney, Carolyn B.
     McGovern
     Pelosi
     Pocan

                              {time}  1656

  Mrs. HANDEL, Messrs. LEWIS of Minnesota, JORDAN, BERGMAN, and Mrs. 
BLACK changed their vote from ``yea'' to ``nay.''
  Mr. CARBAJAL, Ms. SINEMA, Messrs. EVANS, DAVID SCOTT of Georgia, Ms. 
MOORE, Mr. McNERNEY, Ms. MATSUI, and Mr. AL GREEN of Texas changed 
their vote from ``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--yeas 237, 
nays 189, not voting 7, as follows:

                             [Roll No. 630]

                               YEAS--237

     Aderholt
     Allen
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Blumenauer
     Bost
     Brady (TX)
     Brat
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon

[[Page H9238]]


     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Cheney
     Clay
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Cooper
     Correa
     Costello (PA)
     Cramer
     Crawford
     Culberson
     Curtis
     Davidson
     Davis, Rodney
     Denham
     DeSantis
     DesJarlais
     Doggett
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Gaetz
     Gallagher
     Garrett
     Gianforte
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Handel
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huffman
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     Lipinski
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marino
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Moolenaar
     Mooney (WV)
     Mullin
     Newhouse
     Noem
     Nolan
     Norman
     Nunes
     Olson
     Palmer
     Paulsen
     Pearce
     Perry
     Peters
     Peterson
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Reichert
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Rosen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schneider
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Sherman
     Shimkus
     Shuster
     Simpson
     Sinema
     Smith (MO)
     Smith (NE)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Titus
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NAYS--189

     Abraham
     Adams
     Aguilar
     Amash
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Cleaver
     Clyburn
     Cohen
     Connolly
     Conyers
     Costa
     Courtney
     Crist
     Crowley
     Cuellar
     Cummings
     Curbelo (FL)
     Davis (CA)
     Davis, Danny
     DeFazio
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Diaz-Balart
     Dingell
     Donovan
     Doyle, Michael F.
     Ellison
     Engel
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Frelinghuysen
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gomez
     Gonzalez (TX)
     Gottheimer
     Graves (LA)
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     King (NY)
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     LoBiondo
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Carolyn B.
     Maloney, Sean
     Matsui
     McCollum
     McNerney
     Meeks
     Meng
     Mitchell
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Napolitano
     Neal
     Norcross
     O'Halleran
     O'Rourke
     Palazzo
     Pallone
     Panetta
     Pascrell
     Payne
     Perlmutter
     Pingree
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Ros-Lehtinen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sires
     Slaughter
     Smith (NJ)
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--7

     Bridenstine
     Dent
     Johnson, Sam
     McEachin
     McGovern
     Pelosi
     Pocan

                              {time}  1703

  Mr. MARSHALL changed his vote from ``nay'' to ``yea.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________