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IB
Union Calendar No. 210
116TH CONGRESS
1ST SESSION H. R. 3167
[Report No. 116–262, Part I]
To reform and reauthorize the National Flood Insurance Program, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 2019
Ms. WATERS introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on Trans-
portation and Infrastructure, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
OCTOBER 28, 2019
Reported from the Committee on Financial Services with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
OCTOBER 28, 2019
Committee on Transportation and Infrastructure discharged; committed to the
Committee of the Whole House on the State of the Union and ordered
to be printed
[For text of introduced bill, see copy of bill as introduced on June 10, 2019]
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A BILL
To reform and reauthorize the National Flood Insurance
Program, and for other purposes.
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Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
3
(a) SHORT TITLE.—This Act may be cited as the ‘‘Na-
4
tional Flood Insurance Program Reauthorization Act of
5
2019’’.
6
(b) TABLE OF CONTENTS.—The table of contents for
7
this Act is as follows:
8
Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
TITLE I—REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Program extension.
Sec. 102. Demonstration program for policy affordability.
Sec. 103. Premium and fees relief for families and small businesses.
Sec. 104. Monthly installment payment of premiums.
Sec. 105. State revolving loan funds for low-interest loans.
Sec. 106. Use of replacement cost value in estimating premium rates.
Sec. 107. Refund of premiums upon cancellation of policy because of replacement
with private flood insurance.
TITLE II—MAPPING
Sec. 201. Reauthorization of appropriations for National Flood Mapping Pro-
gram.
Sec. 202. National Flood Mapping Program.
Sec. 203. Flood mapping modernization and homeowner empowerment pilot pro-
gram.
Sec. 204. Mapping improvements and reach.
Sec. 205. Appeals regarding existing flood maps.
Sec. 206. Appeals and publication of projected special flood hazard areas.
Sec. 207. Communication and outreach regarding map changes.
Sec. 208. Adoption of partial flood maps.
Sec. 209. New zone for levee-impacted areas.
Sec. 210. Agricultural structures in special flood hazard zones.
Sec. 211. Technical Mapping Advisory Council.
TITLE III—MITIGATION
Sec. 301. Increased cost of compliance coverage.
Sec. 302. Multiple-loss properties.
Sec. 303. Premium rates for certain mitigated properties.
Sec. 304. Coverage for cooperatives.
Sec. 305. Voluntary community-based flood insurance pilot program.
Sec. 306. Mitigation funding.
Sec. 307. Community Rating System improvements.
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Sec. 308. Community assistance program for effective floodplain management.
TITLE IV—MODERNIZATION
Sec. 401. Effect of private flood insurance coverage on continuous coverage re-
quirements.
Sec. 402. Optional coverage for umbrella policies.
Sec. 403. Annual independent actuarial study.
Sec. 404. Sharing of and access to information.
Sec. 405. Elevation certificates.
Sec. 406. Leveraging risk transfer opportunities for a sound financial framework.
Sec. 407. Write-Your-Own arrangements.
Sec. 408. Study on increasing participation.
SEC. 2. CONGRESSIONAL FINDINGS.
1
The Congress finds that—
2
(1) since 2016, communities and families across
3
the United States have suffered over $300 billion in
4
losses as a result of flooding;
5
(2) flooding disasters in the United States
6
present a threat to people, property, and taxpayers;
7
(3) the National Flood Insurance Program
8
(NFIP) is a key component of the Federal Govern-
9
ment’s efforts to minimize the damage and financial
10
impact of floods;
11
(4) the NFIP is the principal provider of flood
12
insurance in the United States, covering over 5 mil-
13
lion households and businesses across the country;
14
(5) affordability of flood insurance coverage re-
15
mains a serious concern;
16
(6) investment in mitigation is a cost-effective
17
means of reducing risk;
18
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(7) a policyholder’s ability to pay for flood in-
1
surance coverage should be considered for premium
2
rate discounts; and
3
(8) in the absence of widespread private insur-
4
ance industry participation, and as a matter of na-
5
tional policy, the Federal Government must ensure
6
the availability and affordability of flood insurance.
7
TITLE I—REAUTHORIZATION
8
AND AFFORDABILITY
9
SEC. 101. PROGRAM EXTENSION.
10
(a) FINANCING.—Subsection (a) of section 1309 of the
11
National Flood Insurance Act of 1968 (42 U.S.C. 4016(a))
12
is amended by striking ‘‘September 30, 2019’’ and inserting
13
‘‘September 30, 2024’’.
14
(b) PROGRAM EXPIRATION.—Section 1319 of the Na-
15
tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is
16
amended by striking ‘‘September 30, 2019’’ and inserting
17
‘‘September 30, 2024’’.
18
(c) RETROACTIVE EFFECTIVE DATE.—If this Act is en-
19
acted after September 30, 2019, the amendments made by
20
subsections (a) and (b) shall take effect as if enacted on
21
September 30, 2019.
22
SEC. 102. DEMONSTRATION PROGRAM FOR POLICY AFFORD-
23
ABILITY.
24
(a) AUTHORITY.—
25
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(1) IN GENERAL.—The Administrator of the Fed-
1
eral Emergency Management Agency shall establish
2
and carry out a demonstration program under this
3
section to demonstrate the effectiveness of providing
4
means-tested discounted rates for flood insurance cov-
5
erage made available under the National Flood Insur-
6
ance Act of 1968 for eligible households.
7
(2) CONSULTATION.—The Administrator may
8
consult with the Secretary of the Treasury and the
9
Secretary of Housing and Urban Development about
10
the implementation of the program established pursu-
11
ant to paragraph (1).
12
(b) ELIGIBLE HOUSEHOLDS AND PROPERTIES.—The
13
Administrator may provide discounted premium rates pur-
14
suant to this section only for properties that are—
15
(1) 1- to 4-family residential properties; and
16
(2) the primary residence of a household whose
17
income does not exceed 80 percent of the area median
18
income, as determined by the Administrator in con-
19
sultation with the Secretary of Housing and Urban
20
Development.
21
(c) INCOME DETERMINATIONS.—For purposes of the
22
program under this section, the Administrator shall make
23
determinations of household income on an annual basis.
24
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(d) PREMIUM DISCOUNTS.—Notwithstanding any pro-
1
vision of the National Flood Insurance Act of 1968, the
2
chargeable premium rate for flood insurance coverage made
3
available under the program under this section shall be an
4
amount that does not exceed 2 percent of annual area me-
5
dian income for the area within which is located the prop-
6
erty for which the coverage is provided.
7
(e) DISCLOSURE OF FULL-RISK RATE.—The Adminis-
8
trator shall provide to each policyholder purchasing flood
9
insurance coverage under the program under this section
10
for a property, not later than the commencement of the pe-
11
riod of such coverage, a written statement setting forth the
12
full actuarial premium rate for coverage for such property
13
determined in accordance with section 1307(a)(1) of the Na-
14
tional Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)),
15
the amount of the premium discount for such coverage, and
16
any other information the Administrator considers helpful
17
to policyholders in understanding flood insurance coverage
18
and costs.
19
(f) GUIDANCE.—Not later than the expiration of the
20
12-month period beginning on the date of the enactment of
21
this Act, the Administrator shall issue guidance providing
22
for the establishment of the demonstration program under
23
this section, which shall include—
24
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(1) an estimation of the cost of the program stat-
1
ed in terms of the aggregate of premium discounts to
2
be made available under the program;
3
(2) a description of how the Administrator will
4
determine eligibility for households to participate in
5
the program in accordance with the requirements for
6
eligibility in subsection (b); and
7
(3) any new requirements to which policyholders
8
participating in the program will be subject; and
9
(4) the results of any consultation with the Sec-
10
retary of the Treasury or the Secretary of Housing
11
and Urban Development.
12
(g) REPORT TO CONGRESS.—
13
(1) COLLECTION OF INFORMATION.—The Admin-
14
istrator shall collect by survey or other means, for
15
each participating community in the national flood
16
insurance program and regarding each year during
17
the period beginning 5 years before implementation of
18
the demonstration program under this section and
19
ending upon the termination date under subsection
20
(j), the following information:
21
(A) The demographic characteristics of
22
households purchasing flood insurance coverage
23
under such program.
24
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(B) The average median income of such
1
households.
2
(C) The number of properties located in
3
areas for which a major disaster related to flood-
4
ing was declared pursuant to the Robert T. Staf-
5
ford Disaster Relief and Emergency Assistance
6
Act.
7
(D) The number of policies made available
8
under the national flood insurance program and
9
the number and aggregate amount of claims sub-
10
mitted under such program.
11
(E) For all properties in such community
12
receiving discounted coverage under the dem-
13
onstration program under this section, the aggre-
14
gate amount of the full actuarial premium rate
15
for coverage that is determined in accordance
16
with section 1307(a)(1) of the National Flood In-
17
surance Act of 1968 (42 U.S.C. 4014(a)(1)) and
18
the aggregate amount of premium discounts pro-
19
vided under the demonstration program.
20
(F) For all properties in such community,
21
any changes to such full actuarial premium
22
rates due to mapping changes or other factors.
23
(2) REPORT TO CONGRESS.—Not later than the
24
expiration of the 5-year period beginning upon the
25
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implementation of the demonstration program under
1
this section, the Administrator shall submit to the
2
Congress a report evaluating the effectiveness of the
3
assistance provided under the program, which shall
4
include—
5
(A) a statement of the number of households
6
participating in the program and the rates of
7
participation by communities participating in
8
the national flood insurance program, including
9
whether such rates of participation have changed
10
by year; and
11
(B) an estimate of the cost of the program
12
to the National Flood Insurance Fund under sec-
13
tion 1310 of the National Flood Insurance Act of
14
1968 (42 U.S.C. 4017).
15
(h) DEFINITIONS.—For purposes of this section, the
16
following definitions shall apply:
17
(1)
ADMINISTRATOR.—The
term
‘‘Adminis-
18
trator’’ means the Administrator of the Federal
19
Emergency Management Agency.
20
(2) PREMIUM DISCOUNT.—The term ‘‘premium
21
discount’’ means, with respect to a policy for flood in-
22
surance coverage under the national flood insurance
23
program made available under the program under
24
this section, the amount by which the full actuarial
25
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premium rate for coverage for such property that is
1
determined in accordance with section 1307(a)(1) of
2
the National Flood Insurance Act of 1968 (42 U.S.C.
3
4014(a)(1)) exceeds the chargeable premium rate for
4
the coverage made available under the program under
5
this section.
6
(i) TERMINATION.—The authority under this section
7
to provide discounted premium rates for flood insurance
8
coverage shall terminate on May 31, 2024.
9
SEC. 103. PREMIUM AND FEES RELIEF FOR FAMILIES AND
10
SMALL BUSINESSES.
11
(a) REPEAL OF SURCHARGE.—
12
(1) REPEAL.—Section 1308A of the National
13
Flood Insurance Act of 1968 (42 U.S.C. 4015a) is
14
hereby repealed.
15
(2) CONFORMING AMENDMENTS.—The National
16
Flood Insurance Act of 1968 is amended—
17
(A)
in
section
1308(m)
(42
U.S.C.
18
4015(m))—
19
(i) in paragraph (1), by striking ‘‘and
20
the
surcharges
required
under
section
21
1308A’’; and
22
(ii) in paragraph (2), by striking ‘‘or
23
surcharges’’; and
24
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(B)
in
section
1310A(c)
(42
U.S.C.
1
4017a(c)), by striking paragraph (4).
2
(b) SMALL LOAN EXCEPTION TO MANDATORY PUR-
3
CHASE
REQUIREMENT.—Subparagraph (A) of section
4
102(c)(2) of the Flood Disaster Protection Act of 1973 (42
5
U.S.C. 4012a(c)(2)(A)) is amended by striking ‘‘$5,000’’
6
and inserting ‘‘$25,000’’.
7
SEC. 104. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.
8
(a) AUTHORITY.—Subsection (g) of section 1308 of the
9
National Flood Insurance Act of 1968 (42 U.S.C. 4015(g))
10
is amended—
11
(1) by striking the subsection designation and all
12
that follows through ‘‘With respect’’ and insertin
[Text truncated for display. Full text available on Congress.gov.]