HomeMy WebLinkAbout14 LEGIS UPDATES - AB3034 & HR3031 06-03-08AGENDA REPORT
MEETING DATE: JUNE 3, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: CITY CLERK'S OFFICE
SUBJECT: LEGISLATIVE REPORTS
SUMMARY:
Staff has prepared two (2) agenda reports that discuss the following legislative items:
• Assembly Bill 3034: Safe, Reliable High Speed Passenger Train Bond Act for the 21St
Century (Galgiani)
Staff recommends that the City Council take a position of support on AB3034 only if
the bond measure is amended to exclude funding for the segment in the LOSSAN
corridor south of Anaheim and direct staff to transmit the draft letter included in
agenda report.
• H.R. 3121: Flood Insurance Reform and Modernization Act of 207
Staff recommends that the City Council take a position of opposition and direct staff
to transmit the draft letter included in the agenda report.
Additionally, Council may request staff to prepare informational reports, and/or letters of
support/opposition on legislative matters that were not agendized.
RECOMMENDATION:
Pleasure of the City Council.
Maria R. Huizar
Chief Deputy City Clerk
AGENDA REPORT
MEETING DATE: JUNE 3, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT
SUBJECT: LEGISLATIVE REPORT - AB 3034 SAFE, RELIABLE HIGH-SPEED
PASSENGER TRAIN BOND ACT FOR THE 21ST CENTURY
SUMMARY
AB 3034 (Galgiani) is proposed to amend prior law related to the California High Speed Rail
System and place a $9.95 billion bond measure on the November 2008 statewide ballot.
The existing Bond Act gives priority to the segment between San Francisco and Los
Angeles. The project provides for the potential extension of the High Speed Rail System
into Orange County as Far south as the Irvine Rail Station. Staff is recommending that the
City Council support the proposed bill only if the bond measure is amended to exclude
funding for the segment within the LOSASAN corridor south of Anaheim.
RECOMMENDATION
Staff recommends that the City Send a Letter of Support for AB 3034 for a share of the bond
proceeds with a request for an amendment to omit funding or construction in the LOSSAN
Corridor south of Anaheim in Orange County.
FISCAL IMPACT
There is no fiscal impact associated with this item.
BACKGROUND
The California High Speed Rail Authority (Authority) was established in 1996 and is the state
entity responsible for planning, constructing and operating ahigh-speed train system serving
California's major metropolitan areas. The Authority has anine-member policy board (five
appointed by the governor, two appointed by the Senate Rules Committee, and two by the
speaker of the Assembly).
In 2002 SB 1856, The Safe, Reliable High Speed Passenger Train Bond Act was approved
by the legislature and authorized the sale of $9.95 billion in general obligation bonds upon
voter approval at the November 2, 2004 statewide election. The intent was to partially fund
the planning and construction of a high-speed train system linking California's major
metropolitan areas with the San Francisco to Los Angeles Segment being the highest
priority. In 2004, SB 1169 (Murray) delayed the bond authorization to the November 7, 2006
statewide election, and AB 713 (Torrico) of 2006 delayed it again to November 4, 2008
AB 3034 contains the following amendments to the existing law:
1) Eliminates language specifying that, after the initial investment from the state
to construct the initial segment, operating revenues and funds from the
federal government and the private sector will be used to pay for expansion of
the system.
2) Replaces language that requires the $9 billion of bond proceeds earmarked
for high-speed rail to first be spent on the segment between San Francisco
Trans-Bay Terminal and Los Angeles Union Station, with language that
requires bond proceeds to be spent generally on all high-speed rail segments
and the Altamont Corridor between the Central Valley and the East Bay. This
bill requires the High Speed Rail Authority (HSRA) to give priority to those
system segments that require the least amount of bond funding as a
percentage of total cost, to consider the utility of that segment for other
passenger rail services, and to ensure that other services will not result in any
operating or maintenance cost to the authority.
3) References the 2005 High Speed Rail Environmental Impact Report instead
of the High Speed Rail Final Business Plan of 2000.
4) Allows up to 10% of bond proceeds earmarked for the high-speed rail system
(a maximum $900 million) to be used for environmental studies, planning and
engineering activities.
5) Specifies that the $950 million in bond proceeds earmarked for intercity and
commuter rail lines and urban rail systems can be allocated to systems that
are part of the construction of the high-speed rail system.
6) Prohibits the siting of a high-speed rail station between the Merced station
and the Gilroy station.
This bill is an urgency measure and the deadline for a legislative measure to qualify for the
November 4, 2008 statewide ballot is June 26.
The cost to build the 800-mile system is estimated to be approximately $40 billion. The
Authority anticipates that Federal funding be utilized to provide 25 to 33 percent of the
construction costs and has identified various types of public-private partnership
opportunities that could fund remaining costs, including project debt financing, vendor
financing, system operations and private ownership.
HR 6003, The Passenger Rail Investment and Improvement Act of 2008, would provide
$14.4 billion over five years to match state costs for high-speed systems. The federal match
would be 80% of state investments, the same as federal highway funds whereas existing
law makes public transportation eligible for only a 50% match.
For service to Orange County, the Authority has proposed to utilize the existing rail corridor
to a new terminal in Anaheim (ARTIC station) Later, the system could be extended
approximately 14 miles to Irvine with a station at the Irvine Transportation Center. Based on
cost estimates provided by the Authority, the cost of the segment could be as much as $1
billion based on the per mile cost of the entire Los Angeles to Irvine segment.
In 2005, the Authority completed and certified a Program Environmental Impact
Report/Environmental Impact Statement (EIR/EIS) for the entire project. A separate project
level EIR/EIS for the Los Angeles-Orange County segment is in process and will only
evaluate the route from Los Angeles to Anaheim. The EIR/EIS indicates that an additional
project level EIR/EIS would be required for the Anaheim-Irvine project segment to analyze
operational and constructability issues, right-of-way constraints, and environmental
conditions.
Because this is a statewide project and project funding could come from a variety of private
and federal funding sources, this legislation and the ballot measure deserve some support
in order to preserve the funding options for the project, particularly the LA to Anaheim
County segment.
However, in order to preclude the development of the Anaheim to Irvine segment of the
project, the ballot measure should either prohibit the use of the bond funds for this segment
or outright forbid construction in the LOSSAN corridor south of Anaheim in Orange County.
Therefore, staff is recommending that the City Council authorize the Mayor to send a letter
of support to the author, the Assembly Appropriations Committee and Tustin's legislators
with a request to amend the measure to omit bond funding construction of the LOSSAN
corridor south of Anaheim in Orange County.
Tim D. Serlet
Director of Public Works/City Engineer
Attachment: AB 3034
Draft City Letter of Support
AMENDED IN ASSEMBLY APRIL 21, 2008
AMENDED IN ASSEMBLY APRIL 9, 2008
CALIFORNIA LEGISLATURE-200]-OS REGULAR SESSION
ASSEMBLY BILL No. 3034
Introduced by Assembly Members Galgiani and Ma
(Principal coauthor: Assembly Member Davis)
( Coauthors: Assembly
Members Aghazarian, Karnette, and Solorio)
( Coauthors: Senators Alquist, Steinberg,
and Torlakson)
February 22, 2008
An act to amend Sections 2704.04, 2704.06, 2704.08, 2704.09, and
2704.095 of the Streets and Highways Code, and to amend Sections 1,
3, and 4 of Chapter 697 of the Statutes of 2002, relating to transportation,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 3034, as amended, Galgiani. Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century.
Existing law, Chapter 697 of the Statutes of 2002, as amended by
Chapter 71 of the Statutes of 2004 and Chapter 44 of the Statutes of
2006, provides for submission of the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21 st Century to the voters for approval
at the November 4, 2008, general election. Subject to voter approval,
the act would provide for the issuance of $9.95 billion of general
obligation bonds, $9 billion of which would be available in conjunction
with any available federal funds for planning and construction of a
high-speed train system pursuant to the business plan of the High-Speed
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AB 3034 - 2 -
Rail Authority, and $950 million of which would be available for capital
projects on other passenger rail lines to provide connectivity to the
high-speed train system and for capacity enhancements and safety
improvements to those lines.
This bill would make various revisions to the bond act to be submitted
to the voters. The bill would refer to construction of a high-speed train
system consistent with the authority's certified environmental impact
report of November 2005, rather than with the final business plan of
June 2000. The bill would revise the descriptions of route corridors of
the proposed high-speed train system. The bill would require excess
revenues from operation of the high-speed train system beyond the
amount needed for high-speed train purposes, as detez~nined by the
authority, to be used to finance construction of the high-speed train
system, and any remaining revenue to be deposited in the General Fund.
The bill would require that not more than 10% of bond proceeds be
used for environmental studies, planning, and preliminary engineering
activities, and would require the authority to have a detailed funding
plan for each segment of the system that identifies the full cost of
construction and the sources of revenues for that segment, prior to
awarding a construction contract for the segment. The bill would require
the authority to give priority in selecting segments for construction to
those segments that are expected to require the least amount of bond
funds as a percentage of total cost of construction, among other
considerations.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 1 of Chapter 697 of the Statutes of 2002,
2 as amended by Section 1 of Chapter 71 of the Statutes of 2004, is
3 amended to read:
4 Section 1. (a) The continuing growth in California's population
5 and the resulting increase in traffic congestion, air pollution,
6 greenhouse gas emissions, and the continuation of urban sprawl
7 make it imperative that the state proceed quickly to construct a
8 state-of--the-art high-speed passenger train system to serve major
9 metropolitan areas.
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(b) The High-Speed Rail Authority, after extensive studies and
analysis, proposes the construction of a high-speed train system
that serves major population centers in the state and that links
regional and local transit systems to form an integrated
transportation system throughout the state. The system will link
all of the state's major population centers, including Sacramento,
the Bay Area, the Central Valley, Los Angeles, the
Inland Empire, Orange County, and San Diego.
(c) The high-speed train system proposed by the authority will
cost about one-third of what it would cost to provide the same
level of mobility and service with highway and airport
improvements and will contribute significantly toward a reduction
in air pollution and global warming.
(d) The high-speed train system, once it is completed and
becomes operational, will contribute significantly toward the goal
of reducing greenhouse gas emissions and other air pollutants and
will help reduce California's dependence on foreign energy sources.
(e) The high-speed passenger train bond funds are intended to
encourage the federal government and the private sector to make
a significant contribution toward the construction of the high-speed
train system.
(f) It is the intent of the Legislature that the entire high-speed
train system shall be constructed as quickly as possible in order
to maximize ridership and the mobility of Californians, and that
it be completed no later than 2020, and that all phases shall be
built in a manner that yields maximum benefit consistent with
available revenues.
SEC. 2. Section 2704.04 of the Streets and Highways Code,
as added by Section 2 of Chapter 697 of the Statutes of 2002, is
amended to read:
2704.04. (a) It is the intent of the Legislature by enacting this
chapter and of the people of California by approving the bond
measure pursuant to this chapter to initiate the construction of a
high-speed train system consistent with the authority's certified
environmental impact report of November 2005.
(b) (1) Nine billion dollars ($9,000,000,000) of the proceeds
of bonds authorized pursuant to this chapter, as well as federal
funds and other revenues made available to the authority, to the
extent consistent with federal and other fund source conditions,
shall be used for planning and eligible capital costs, as defined in
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AB 3034
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subdivision (c), for the purpose of including, but not limited to,
the following high-speed train system corridors:
(A) Sacramento to Stockton to Fresno.
(B) San Francisco Transbay Terminal to San Jose to Fresno.
(C) Oakland to San Jose.
(D) Fresno to Bakersfield to Palmdale to Los Angeles Union
Station.
(E) Los Angeles Union Station to Riverside to San Diego.
(F) Los Angeles Union Station to Anaheim to Irvine.
(G) Altamont Corridor connecting the
Central Valley to the East Bay.
(2) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central
Valley to the Bay Area in its cert~cation of the environmental
impact report.
(3) Revenues of the authority, generated by operations of the
high-speed train system above and beyond operating and
maintenance costs and financing obligations, as determined by the
authority, shall be used to finance construction of the high-speed
train system. If, after satisfaction of the foregoing, there remain
additional revenues, those revenues shall be deposited in the
General Fund.
(c) Capital costs eligible to be paid from proceeds of bonds
authorized for high-speed train purposes pursuant to this chapter
include all activities necessary for acquisition of right-of--way,
construction of tracks, structures, power systems, and stations,
purchase of rolling stock and related equipment, and other related
capital facilities and equipment.
(d) Proceeds of bonds authorized pursuant to this chapter shall
not be used for any operating or maintenance costs of trains or
facilities.
(e) The State Auditor shall perform periodic audits of the
authority's use of proceeds of bonds authorized pursuant to this
chapter for consistency with the requirements of this chapter.
SEC. 3. Section 2704.06 of the Streets and Highways Code,
as added by Section 2 of Chapter 697 of the Statutes of 2002, is
amended to read:
2704.06. Nine billion dollars ($9,000,000,000) of the money
in the fund, upon appropriation by the Legislature, shall be
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available, without regard to fiscal years, for planning and
construction of a high-speed train system in this state, consistent
with the authority's certified environmental impact report of
November 2005, as subsequently modified pursuant to
environmental studies conducted by the authority.
SEC. 4. Section 2704.08 of the Streets and Highways Code,
as added by Section 2 of Chapter 697 of the Statutes of 2002, is
amended to read:
2704.08. (a) Proceeds of bonds authorized for high-speed train
purposes pursuant to this chapter shall not be used for more than
one-half of the total cost of construction of track and station costs
of each segment of the high-speed train system.
(b) Not more than 10 percent of the proceeds of bonds
authorized pursuant to this chapter shall be used for environmental
studies, planning, and preliminary engineering activities.
(c) In selecting each specific segment for construction and prior
to awarding a construction contract, the authority shall have a
detailed funding plan for that segment that identifies the full cost
of constructing the segment and the sources of all revenues needed
to complete construction of the segment.
(d) In selecting segments for construction, the authority shall
give priority to those segments that are expected to require the
least amount of bond funds as a percentage of total cost of
construction, shall consider the utility of those segments for
passenger rail services other than the high-speed train system, and
shall ensure that any passenger service other than the high-speed
train system provided on those segments will not result in any
unreimbursed operating or maintenance cost to the authority.
SEC. 5. Section 2704.09 of the Streets and Highways Code,
as added by Section 2 of Chapter 697 of the Statutes of 2002, is
amended to read:
2704.09. The high-speed train system to be constructed
pursuant to this chapter shall have the following characteristics:
(a) Electric trains that are capable of sustained maximum
revenue operating speeds of no less than 200 miles per hour.
(b) Maximum nonstop service travel times for each corridor
that shall not exceed the following:
(1) San Francisco-Los Angeles Union Station: two hours, 42
minutes.
(2) Oakland-Los Angeles Union Station: two hours, 42 minutes.
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1 (3) San Francisco-San Jose: 31 minutes.
2 (4) San Jose-Los Angeles: two hours, 14 minutes.
3 (5) San Diego-Los Angeles: one hour.
4 (6) Inland Empire-Los Angeles: 29 minutes.
5 (7) Sacramento-Los Angeles: two hours, 22 minutes.
6 (8) Sacramento-San Jose: one hour, 12 minutes.
7 (c) Achievable operating headway (time between successive
8 trains) shall be five minutes or less.
9 (d) The total number of stations to be served by high-speed
10 trains for all of the corridors described in subdivision (b) of Section
11 2704.04 shall not exceed 24. There shall be no station between the
12 Gilroy station and the Merced station.
13 (e) Trains shall have the capability to transition intermediate
14 stations, or to bypass those stations, at mainline operating speed.
15 (f) For each corridor described in subdivision (b), passengers
16 shall have the capability of traveling from any station on that
17 corridor to any other station on that corridor without being required
18 to change trains.
19 (g) In order to reduce impacts on communities and the
20 environment, the alignment for the high-speed train system shall
21 follow existing transportation or utility corridors to the extent
22 possible and shall be financially viable, as determined by the
23 authority.
24 (h) Stations shall be located in areas with good access to local
25 mass transit or other modes of transportation.
26 (i) The high-speed train system shall be planned and constructed
27 in a manner that minimizes urban sprawl and impacts on the natural
28 environment.
29 (j) Preserving wildlife corridors and mitigating impacts to
30 wildlife movement, where feasible as determined by the authority,
31 in order to limit the extent to which the system may present an
32 additional barrier to wildlife's natural movement.
33 SEC. 6. Section 2704.095 of the Streets and Highways Code,
34 as added by Section 2 of Chapter 697 of the Statutes of 2002, is
35 amended to read:
36 2704.095. (a) (1) Oftheproceedsofbondsauthorizedpursuant
37 to this chapter, nine hundred fifty million dollars ($950,000,000)
38 shall be allocated to eligible recipients for capital improvements
39 to intercity and commuter rail lines and urban rail systems that
40 provide direct connectivity to the high-speed train system and its
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1 facilities, or that are part of the construction of the high-speed train
2 system as that system is described in subdivision (b) of Section
3 2704.04, or that provide capacity enhancements and safety
4 improvements. Funds under this section shall be available upon
5 appropriation by the Legislature in the Annual Budget act for the
6 eligible purposes described in subdivision (d).
7 (2) Twenty percent (one hundred ninety million dollars
8 ($190,000,000)) of the amount authorized by this section shall be
9 allocated for intercity rail to the Department of Transportation, for
10 state-supported intercity rail lines that provide regularly scheduled
11 service and use public funds to operate and maintain rail facilities,
12 rights-of--way, and equipment. A minimum of 25 percent of the
13 amount available under this paragraph (forty-seven million five
14 hundred thousand dollars ($47,500,000)) shall be allocated to each
15 of the state's three intercity rail corridors.
16 The California Transportation Commission shall allocate the
17 available funds to eligible recipients consistent with this section
18 and shall develop guidelines, in consultation with the authority,
19 to implement the requirements of this section. The guidelines shall
20 include provisions for the administration of funds, including, but
21 not limited to, the authority of the intercity corridor operators to
22 loan these funds by mutual agreement between intercity rail
23 corridors.
24 (3) Eighty percent (seven hundred sixty million dollars
25 ($760,000,000)) of the amount authorized by this section shall be
26 allocated to eligible recipients, except intercity rail, as described
27 in subdivision (c) based upon a percentage amount calculated to
28 incorporate all of the following:
29 (A) One-third of the eligible recipient's percentage share of
30 statewide track miles.
31 (B) One-third of the eligible recipient's percentage share of
32 statewide annual vehicle miles.
33 (C) One-third of the eligible recipient's percentage share of
34 statewide annual passenger trips.
35 The California Transportation Commission shall allocate the
36 available funds to eligible recipients consistent with this section
37 and shall develop guidelines to implement the requirements of this
38 section.
39 (b) For the purposes of this section, the following terms have
40 the following meanings:
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AB 3034
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(1) "Track miles" means the miles of track used by a public
agency or joint powers authority for regular passenger rail service.
(2) "Vehicle miles" means the total miles traveled, commencing
with pullout from the maintenance depot, by all locomotives and
cars operated in a train consist for passenger rail service by a public
agency or joint powers authority.
(3) "Passenger trips" means the annual unlinked passenger
hoardings reported by a public agency or joint powers authority
for regular passenger rail service.
(4) "Statewide" when used to modify the terms in paragraphs
(A), (B), and (C) of paragraph (3) of subdivision (a) means the
combined total of those amounts for all eligible recipients.
(c) Eligible recipients for funding under paragraph (3) of
subdivision (a) shall be public agencies and joint powers authorities
that operate regularly scheduled passenger rail service in the
following categories:
(1) Commuter rail.
(2) Light rail.
(3) Heavy rail.
(4) Cable car.
(d) Funds allocated pursuant to this section shall be used for
connectivity with the high-speed train system or for the
rehabilitation or modernization of, or safety improvements to,
tracks utilized for public passenger rail service, signals, structures,
facilities, and rolling stock.
(e) Eligible recipients may use the funds for any eligible rail
element set forth in subdivision (d).
(f) In order to be eligible for funding under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
provide matching funds in an amount not less than the total amount
allocated to the recipient under this section.
(g) An eligible recipient of funding under paragraph (3) of
subdivision (a) shall certify that it has met its matching funds
requirement, and all other requirements of this section, by
resolution of its governing board, subject to verification by the
California Transportation Commission.
(h) Funds made available to an eligible recipient under paragraph
(3) of subdivision (a) shall supplement existing local, state, or
federal revenues being used for maintenance or rehabilitation of
the passenger rail system. Eligible recipients of funding under
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AB 3034
paragraph (3) of subdivision (a) shall maintain their existing
commitment of local, state, or federal funds for these purposes in
order to remain eligible for allocation and expenditure of the
additional funding made available by this section.
(i) In order to receive any allocation under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
annually expend from existing local, state, or federal revenues
being used for the maintenance or rehabilitation of the passenger
rail system in an amount not less than the annual average of its
expenditures from local revenues for those purposes during the
1998-99, 1999-2000, and 2000-01 fiscal years.
(j) Funds allocated pursuant to this section to the Southern
California Regional Rail Authority for eligible projects within its
service area shall be apportioned each fiscal year in accordance
with memorandums of understanding to be executed between the
Southern California Regional Rail Authority and its member
agencies. The memorandum or memorandums of understanding
shall take into account the passenger service needs of the Southern
California Regional Rail Authority and of the member agencies,
revenue attributable to member agencies, and separate contributions
to the Southern California Regional Rail Authority from the
member agencies.
SEC. 7. Section 3 of Chapter 697 of the Statutes of 2002, as
amended by Section 3 of Chapter 44 of the Statutes of 2006, is
amended to read:
Sec. 3. Section 2 of Chapter 697 of the Statutes of 2002, as
amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004,
as further amended by Sections 1 and 2 of Chapter 44 of the
Statutes of 2006, and as further amended by Sections 2 to 6,
inclusive, of the act amending this section in the 2007-08 Regular
Session, shall take effect upon the adoption by the voters of the
Safe, Reliable High-Speed Passenger Train Bond Act for the 21st
Century, as set forth in Section 2 of Chapter 697 of the Statutes
of 2002, as amended by Sections 2 and 3 of Chapter 71 of the
Statutes of 2004, as further amended by Sections 1 and 2 of Chapter
44 of the Statutes of 2006, and as further amended by Sections 2
to 6, inclusive, of the act amending this section in the 2007-08
Regular Session.
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SEC. 8. Section 4 of Chapter 697 of the Statutes of 2002, as
amended by Section 4 of Chapter 44 of the Statutes of 2006, is
amended to read:
Sec. 4. (a) Section 2 of Chapter 697 of the Statutes of 2002,
as amended by Sections 2 and 3 of Chapter 71 of the Statutes of
2004, as further amended by Sections 1 and 2 of Chapter 44 of the
Statutes of 2006, and as further amended by Sections 2 to 6,
inclusive, of the act amending this section in the 2007-08 Regular
Session, shall be submitted to the voters at the November 4, 2008,
general election in accordance with provisions of the Government
Code and the Elections Code governing the submission of statewide
measures to the voters.
(b) Notwithstanding any other provision of law, all ballots of
the November 4, 2008, general election shall have printed thereon
and in a square thereof, exclusively, the words "Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century" and
in the same square under those words, the following in 8-point
type: "This act provides for the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century. For the purpose
of reducing traffic on the state's highways and roadways, upgrading
commuter transportation, improving people's ability to get safely
from city to city, alleviating congestion at airports, reducing air
pollution, and providing for California's growing population, shall
the state build ahigh-speed train system and improve existing
passenger rail lines serving the state's major population centers
by creating a rail trust fund that will issue bonds totaling $9.95
billion, paid from existing state funds at an average cost of
dollars ($~ per year over the 30-year life of the bonds, with
all expenditures subject to an independent audit?" The blank space
in the question to appear on the ballot pursuant to this subdivision
shall be filled in by the Attorney General with the appropriate
figure provided by the Legislative Analyst relative to the annual
average cost of the bonds. Opposite the square, there shall be left
spaces in which the voters may place a cross in the manner required
by law to indicate whether they vote for or against the measure.
(c) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (b) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General
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1 may include the financial impact summary prepared pursuant to
2 Section 9087 of the Elections Code and Section 88003 of the
3 Government Code. The ballot label is the condensed statement of
4 the ballot title and the financial impact summary.
5 (d) Where the voting in the election is done by means of voting
6 machines used pursuant to law in the manner that carries out the
7 intent of this section, the use of the voting machines and the
8 expression of the voters' choice by means thereof are incompliance
9 with this section.
10 SEC. 9. This act is an urgency statute necessary for the
11 immediate preservation of the public peace, health, or safety within
12 the meaning of Article IV of the Constitution and shall go into
13 immediate effect. The facts constituting the necessity are:
14 In order to modify the provisions of a general obligation bond
15 measure on the November 4, 2008, general election ballot that
16 would authorize the issuance and sale of bonds for the financing
17 of a high-speed passenger train system and for other related
18 purposes, it is necessary that this act take effect immediately.
O
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DATE
Assembly Member Cathleen Galgiani
State Capitol Building, Room 2170
Sacramento, CA 94249-0017
Assembly Member Fiona Ma
State Capitol Building, Room 2176
Sacramento, CA 94249-0012
RE: Notice of Support if Amended for AB 3034.
Dear Assembly Members Galgiani and Ma:
The City of Tustin supports AB 3034 the proposed bill only if the bond measure is
amended to exclude funding for the segment the LOSASAN corridor in Orange County
south of Anaheim.
The City of Tustin believes that a high speed rail system is an essential component of
the California's transportation plan. However, the City believes that the approximately
14 mile, $1 billion extension of the high speed rail system through Tustin with a terminus
in Irvine is an unwarranted expense and would represent significant impact to traffic,
businesses and the quality of life for residents along this densely populated area of the
proposed route.
For these reasons, the City of Tustin supports AB 3034 only if amended to exclude the
use of the LOSSAN rail corridor in Orange County south of Anaheim and thanks you for
your guidance on this issue.
Sincerely,
Jerry Amante
Mayor
c: Assembly Member Chuck DeVore , 70th District
Assembly Member Todd Spitzer, 71st District
Senator Richard Ackerman, 33rd District
League of California Cities, Fax #916-658-8240
AGENDA REPORT
MEETING DATE: JUNE 3, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: LEGISLATIVE REPORT - H.R. 3121
SUMMARY:
H.R. 3121 the Flood Insurance Reform and Modernization Act of 2007 would authorize the
National Flood Insurance Program (NFIP) of the Federal Emergency Management Agency
(FEMA) to enter into and renew flood insurance policies through 2013; under current law,
that authority would expire at the end of 2008. The changes proposed would extend the
mandatory purchase of flood insurance, where it is not currently required, affecting
properties located in Tustin that would be designated as "an area having special flood
hazards were it not for the existence of a structural flood protection system", such as
Prado Dam.
RECOMMENDATION:
That the City Council take a position to oppose H.R. 3121 and direct staff to transmit the
attached letter of opposition to Congressman Campbell (Attachment A).
FISCAL IMPACT:
There are no significant fiscal impacts associated with this action. However, passage of
H.R. 3121 would mandate the purchase of flood insurance coverage for properties which
are affected by the revised floodplain designation.
DISCUSSION:
H.R. 3121 would require residents to obtain mandatory flood insurance coverage for
properties located in any area that would be designated as an area having special flood
hazards if it were not for the existence of a structural flood protection system, such as
the Prado Dam and Seven Oaks Dam. According to the Congressional Budget Office
Cost Estimate (Sept. 20, 2007), H.R. 3121 would also raise the cap on the average
annual premium increase allowed under current law from 10 percent to 15 percent for
properties located within newly designated flood zones.
This would potentially affect a majority of residents within the City of Tustin; requiring
mandatory flood insurance coverage where it has not been required in the past. For
City Council Report
HR 3121
June 3, 2008
Page 2
example, homes constructed within the Legacy would be assessed approximately $850
per year for flood insurance coverage. With the additional increase of 10-15% for
properties in the newly designated flood zone, this would reach approximately $1,000
per year for coverage.
Furthermore, flood insurance coverage for residential real estate is generally available
under the National Flood Insurance Program (NFIP) whether or not the real estate is
located in an area having special flood hazards. However, the liability to the federal
government, and the U.S. taxpayers, would likely increase exponentially. If citizens
likely opt for the publicly financed insurance rather than private insurance, when the
next natural disaster strikes, the federal government, and ultimately the taxpayers, will
end up paying twice: once for expanded insurance payouts and again for the disaster
assistance that is already available to help manage natural catastrophes.
(A copy of H.R. 3121 is included as Attachment B to this report.)
In order to avoid an undue burden on the residents of Tustin, staff recommends that the
City Council take a position of opposition to H.R. 3121.
Amy Thomas, AICP
Senior Planner
Elizabeth A. Binsack
Community Development Director
Attachments A: H.R.3121
B: Draft Letter of Opposition
5:\CtlNVnyiLegislalive uptlales\HR 3121 staff ryt b.doc
ATTACHMENT A
Draft Letter of Opposition
June 3, 2008
The Honorable John Campbell
United States Congress, 48th District
610 Newport Center Drive, Suite 330
Newport Beach, CA 92660
SUBJECT: H.R. 3121 (WATERS) -LETTER OF OPPOSITION
Dear Congressman Campbell:
On behalf of the City of Tustin, I wish to express our opposition to H.R. 3121 known as
the "Flood Insurance Reform and Modernization Act of 2007". We are concerned that
H.R. 3121 will place an undue burden on the taxpayers of the City of Tustin.
H.R. 3121 would require residents to obtain mandatory flood insurance coverage for
properties located in any area that would be designated as an area having special flood
hazards if it were not for the existence of a structural flood protection system, such as
the Prado Dam and Seven Oaks Dam. Furthermore, all Pre-FIRM properties
(properties built before 1974 that receive subsidized insurance rates) which currently
receive coverage under the National Flood Insurance Program (NFIP) will cease to be
covered under the program. This would affect the many homeowners within the City
whose homes were constructed prior to December 31, 1974.
The regulatory, financial, and economic impacts of extending such mandatory purchase
requirement on the costs of homeownership, and the calculated risk relating to the
statistical calculation of risk or life expectancy for insurance purposes on local
communities, insurance companies, and local land use have not yet been determined.
Nor has it been determined what these risks will pose to the NFIP and the Federal
Emergency Management Agency (FEMA). Yet, Section 22 Ongoing Modernization of
Flood Maps and Elevation Standards, would authorize the appropriation of $400 million
per year over the 2008-2013 period for updating flood maps to include the 500-year
floodplain, as well as areas that would be flooded if a dam or levee failed.
The City of Tustin is concerned about including these areas since it would potentially
affect a majority of residents and property owners within the City of Tustin; requiring
mandatory flood insurance coverage where it has not been required in the past and
causing an undue burden on homeowners. For these reasons, the City of Tustin
opposes H.R. 3121.
Thank you for your attention to this matter that is of critical importance to our city, and
we would appreciate your thoughts and opinions regarding H.R. 3121.
Sincerely,
Jerry Amante
Mayor
ATTACHMENT B
H.R. 3121
I
~~°TH ~~ONGRESS H. R. 3121
1ST SESSIO\
To restore the financial solvency of the national flood insurance program
and to provide for such program to make available multipei~l coverage
for da~roage resulting from ~~-indstorms and floods, and far- other purposes.
IN TIIE HOUSE OF REPRESENTATNES
JULY 19, 2007
NIs. ~Vt1TERS (for herself, Mr. TA~7,OR, NIr. JINDAIy Mr. ~L GREEN of Texas,
and l~Ir. FRavr~ of l~2assaehusetts) introduced the following bill; which
was referred to the Committee on Financial Sei~~ices
A BILL
To restore the financial solvency of the national flood insur-
ance program and to provide for such program to make
available multipcril coverage for damage resulting from
windstorms and floods, and for other purposes.
1 Be it enacted by th,~ Senate arid, Ho~icse of Pe~reserztu,-
2 t,~ives of'the Urei,ted States of'~lme~r~~cr~; ~n Corr,gress usse~m,Uled,
3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
4 (a) SHORT TITLE.-'Phis Act may be cited as the
5 "Flood Insurance Reform and Modernization Act of
6 2007".
7 (b) TALE of CONTENTS.-The table of contents for
8 this Act is as follows:
2
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Scc. 3. Study regarding status of pre-firm properties and mandatory purchase
requirement for natural 100-year floodplain and non-federally
related loans.
Sec. 4. Phase-in of achiarial rates for nonresidential properties and non-pri-
maiy residences.
Scc. 5. Eaecption to waiting period for effective date of policies.
Sec. 6. Fnforeement.
Scc;. 7. Dlultipcril coverage for flood and ~~2ndstorm.
Scc;. 8. LVlaximum covuragc limits.
Sec. 9. Coverage for additional living• expenses, basement improvements, busi-
ness interruption, and replacement cost of contents.
Sec. 10. Aotification to tenants of availability of contents insurance.
Sec. 11. Increase in anneal limitation on prenrimu increases.
Scc. 12. Increase in borrowing authority.
Sec. 13. FEM~ participation in State disaster claims mediation programs.
Sec. 14. FEMA annual report on insurance program.
Scc;. 15. Flood insurance outreach grants.
Scc,. 16. Grants for dircut funding of mitigation acti~~itics for individual rcpct-
itive claims properties.
Scc. 17. Fxtension of pilot program for mitigation of severe repctiti~~e loss prop-
erties.
Sec. 18. Flood mitigation assistance program.
Sec. 19. GAO study of methods to increase flood insurance program parricipa-
tion by low-income families.
Scc. 20. Aoticc. 01 ava~ilabiliiy of flood insurance and escrow in RliSPA good
faith estimate.
Sec. 21. Reiteration of FEI\~IA responsibilities under 2004 Reform 1~c,t.
Sec. 22. Ong•oing• modernization of flood maps and elevation standards.
Scc. 2~. Aotification and appeal of mxp chances; notification of cstablislnncnt
of flood elevations.
Sec. 24. Clarification of replacement cost, pro~risions, forms, and policy lan-
g~lag'C.
Sec. 25. Authorization of additional FE11IA staff.
Scc;. 2(i. Extension of deadline for filing• proof of loss.
Scc;. 27. 5-year extension of program.
I SEC. 2. FINDINGS AND PURPOSES.
2 (a) FINVIlv~cTs.-The Congress finds that-
3 (1) flooding; has been sho«rn to occur in all 50
4 Status, the District of Columbia, and in all tcrri-
5 furies and possessions of the United States;
6 (2) the national flood insurance program
7 (NFIP) is the only affordable and reliable source of
8 insurance to protect against flood losses;
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(3) the a,ggr•ega,te amount of the flood insurance
claims resulting from Hurricane Katrina, Hurricane
Rita, acrd other c~-cnts has exceeded the aggrcga~tc
amount of all claims prc~~iously paid in the history
of the national flood insurancc program, requiring a
significant increase in the program's borrowing au-
thority;
(4) flood insurance policyholders ha~~e a legiti-
mate expectation that they will receive fair and time-
ly compensation for losses covered under their poli-
cies;
(5) substantial flooding has occurred, and will
likely occur again, outside the areas designated by
the Federal Emergency Nlana,gement Agency
(FEMA) as high-risk flood hazard arcas;
(6) properties located in lo~i~- to moderate-risk
arcas arc cli~,~iblc to purchase flood insurancc policies
with premiums as low as $112 a year;
(7) about 450,000 vacation homes, second
homes, and commercial properties are subsidized
and are not paying actuarially sound rates for flood
msurance;
(8) phasing out subsidies currently extended to
vacation homes, second homes, and commercial
properties would result in estimated a,vera.ge annual
•HR 3121 IH
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savings to the taxpayers of the United States and
the national flood insurance program of
$335,000,000;
(9) the rnax-imum coverage limits for flood in-
surance politics should be increased to reflect infla-
tion and tht increased cost of housing;
(10) significant reforms to the national flood in-
surance program required in the Bunning-Bereuter-
P7lumenauer Flood Insurance Reform Act of 2004
have yet to be implemented; and
(ll) in addition to reforms required in .the
I3unning-Bereuter-Blumenauer Flood Insurance Re-
form Act of 2004, the national flood insur•a,nce pr•o-
gram requires a modernized and updated adminis-
tra.tivc model to ensure that the program is solvent
and the people of the United States have continued
actcss to flood insurance.
(b) PUlzt~osLS.-'hhe purposes of this Acst arc-
(1) to protect the integrity of the national flood
insurance pro~mam by fully fundin~• existing le~•al ob-
ligations expected by existing policyholders who have
paid policy premiums in return for• flood insurance
coverage and to pay debt service on funds borrowed
by the NFIP;
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1 (2) to increase incentives for homeowners and
2 cornmunities to participate in the national flood in-
3 suranec program and to improve oversight to ensure
4 better accountability of the NFIY and FEMA;
5 (3) to increase awareness of homeowners of
6 flood risks and improve the duality of information
7 regarding• such risks provided to homeowners; and
8 (4) to provide for the national flood insurance
9 progmam to make available optional multiperil v~sur-
10 ante coverage against loss resulting from physical
11 damage to or loss of real or personal property aris-
12 ing from any flood or windstorm.
13 SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROP-
14 ERTIES AND MANDATORY PURCHASE RE-
1 S QUIREMENT FOR NATURAL 100-YEAR FLOOD-
1 E) PLAIN AND NON-FEDERALLY RELATED
17 LOANS.
18 (a) IN GENERAL - The Comptroller General shall
19 conduct a study as follows:
20 (1) PRE-FIRM PROPERTIES.-The study shall
21 determine the status of the national flood insurance
22 program, as of the date of the enactment of this Act,
23 with respect to the provision of flood insurance cov-
24 erage for pre-FIRM properties (as such term is de-
25 fined in section 578(b) of the National Flood Insur-
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1 ance Reform Act of 1994 (42 U.S.C. 4014 note)),
2 which shall include determinations of-
3 (A) the nurnbcr• of pre-FIRM properties
4 for which coverage is pro~-ided and the extent of
5 such coverage;
6 (B) the cost of providing co~-er•age for such
7 pre-FIRM properties to the national flood in-
8 surance program;
9 (C) the anticipated rate at which such pre-
10 FIRM properties «~ill cease to be covered under
11 the program; and
12 (D) the effects that implementation of the
13 Bunning-Bereuter-Blumenauer Flood Insurance
14 Reform Act of 2004 will hate on the national
15 flood insura~ncc program generally and on cov-
16 crags of pre-FIRM properties under the pro-
17 ,ram.
1$ (2) MANDATORY I'URCIIASE RERUIREI~IEN'r FOR
19 NAZ`URA7~ 100-YEAR FI.OODPI.AIN.-The Study shall
20 assess the impact, effectiveness, and feasibility of
21 amending the pro~~isions of the Flood Disaster Pro-
22 tection Act of 1973 regarding the properties that are
23 subject to the mandatory flood insurance coverage
24 purchase r•equir•ements under such Act to extend
25 such requirements to properties located in any area
•HR 3121 IH
7
1 that would be designated as an area having special
2 flood hazards but for the existence of a structural
3flood protection system, and shall determine-
4 (A) the regulatory, financial and economic
5 impacts of extending such mandatory purchase
6 requirements on the costs of homeownership,
7 the actuarial soundness of the national flood in-
8 surance program, the Federal Emergency IVlan-
9 agement Agency, local communities, insurance
10 companies, and local land use;
11 (B) the effectiveness of extending such
12 mandatory purchase requirements in protecting
13 homeowners from financial loss and in pro-
14 testing the financial soundness of the national
15 flood insurance program; and
16 (C) any impact on lenders of complying
17 with or enforcing such extended mandatory re-
18 quirernents.
19 (3) MANDATORY PURCHASE REQUIREMENT FOR
2~ NON-FEDERALLY RELATED LOANS.-The study shall
21 assess the impact, effectiveness, and feasibility of,
22 and basis under the Constitution of the United
23 States for, amending the provisions of the Flood
24 Disaster Protection Act of 1973 regarding the prop-
25 ernes that are subject to the mandatory flood insur-
•HR 3121 IH
8
1 ance coverage purchase requirements under such Act
2 to extend such requirements to any property that is
3 located in any area, having special flood hazards and
4 which secures the repayment of a loan that is not
5 described in paragraph (1), (2), or (3) of section
6 102(b) of such Act, and shall determine how best to
7 administer and enforce such a requirement, taking
8 into consideration other insurance purchase require-
9 menu under Federal and State law.
10 (b) REPORT.-The Comptroller General shall submit
11 a report to the Congress regarding the results and conclu-
12 lions of the study under this subsection not later than the
13 expiration of the 6-month period beginning on the date
14 of the enactment of this Act.
15 SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN-
16 TIAL PROPERTIES AND NON-PRIMARY RESI-
17 DENCES.
18 (a) IN GENEI~~.-Section 1308(c) of the National
19 Flood Insurance Act of_ 1968 (42 U.S.C. 4015(c)) is
20 a,mended-
21 (1) by redesignating paragraph (2) as para-
22 graph (4); and
23 (2) by inserting after paragraph (1) the fol-
24 lowing new paragraphs:
•HR 3121 IH
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1 "(2) NONRESIDENTIAL, PROPERTIES.-Any non-
2 residential property.
3 "(3) NON-PRIMARY RESIDENCES. Any residen-
4 tial property that is not the primary residence of an
5 individual.".
6 (b) TECHNICAI. AMENDMENTS.-Section 1308 of the
7 National Flood Insurance Act of 1968 (42 U.S.C. 4015)
8 is amended-
9 (1) in subsection (c)-
10 (A) in the matter preceding paragraph (1),
11 by striking "the limitations provided under
12 paragraphs (1) and (2)" and inserting "sub-
13 section (e)"; and
14 (B) in paragraph (1), by striking ", ex-
15 ccpt" and all that follows through "sub-section
16 (c)"; and
17 (2) in subsection (c), by striking "paragraph
18 (2) or (3)" and inserting "paragraph (4)".
19 (c) EFFECTIVE DATE AND TRANSITION.-
20 (1) EFFECTIVE DATE.-'l~lie amendments made
21 by subsections (a) and (b) shall apply beginning on
22 January 1, 2011, except as provided in paragraph
23 (2) of this subsection.
24 (2) TRANSI'hION FOR PROPERTIES COVERED BY
2S FLOOD INSURANCE UPON EFFECTIVE DATE.-
•HR 3121 IH
10
(A) INCRE SSE OF P,~~TES OVER TIME.-In
the case of any property described in paragraph
(2) or (3) of section 1308(c) of the National
Flood Insurance Act of 1968,. as amended by
subsection (a) of this section, that, as of the ef-
fectiVe date under paragraph (1) of this sub-
section, is covered under a policy for flood in-
surance made available under the national flood
insurance program for which the chargeable
premium rates are less than the applicable esti-
mated risk premium rate under section
1307(x)(1) for the area in which the property
is located, the Director of the Federal Emer-
gency 1\Ia,nagement Agency shall increase the
chargeable premium rates for such property
over time to such applicable estimated risk pre-
mium rate under section 1307(x)(1).
(B~ A1NNUaI~ INCI~,EASE.-Such increase
shall be made by increasing the chargeable pre-
mium rates for the property (after application
of any increase in the premium rates othertivise
applicable to such property), once during the
12-month period that begins upon the effective
date under paragraph (1) of this subsection and
once every 12 months thereafter until such in-
•HR 3121 IH
11
crease is accomplished, by 15 percent (or such
lesser amount as ma~~ he necessary so that the
chargcak~l0 rate does not exceed such applica,blc
estimated risk premium rate or to comply with
subpara~,Taph (C)). Any incrcasc in chargeable
premium rates for a property pursuant to this
paragraph shall not be considered for purposes
of the limitation under section 1308(e) of such
Act.
(C) PROPERTIES SUEJECT TO PHASE-IN
AND ANNUAL INCREASES.-In the case of any
pre-FIPM property (as such. term is defined in
section 578(b) of the National Flood Insurance
Reform Act of 1974), the a,ggr•ega,te increase,
during any 12-month period, in the chargca,hlc
premium rate for the property that is attrib-
utable to this paragraph or to an incrcasc de-
scribed in section 1308(0) of th0 National Flood
Insurance Act of 1968 may not exceed the fol-
lowing percentage:
(i) NONRESIDENTIAL PROPERTIES.-
In the case of any property described in
such section 1308(c)(2), 20 percent.
•HR 3121 IH
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1 (ii) NON-PRIMARY RESIDENCES.-In
2 the case of any property descrihed in such
3 section 1308(c)(3), 25 percent.
4 (I~) FuI,I. 1cTU.~1tI.2I, Iz~1TES.-The provi-
5 sions of paragraphs (2) alld (3) of such section
6 1308(c) shall apply to such a property upon the
7 accomplishment of the increase under this para~-
8 graph and thereafter.
9 SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE
I ~ DATE OF POLICIES.
11 Section 1306(c) (2) (A) of the National Flood Insur-
12 ance 1~et of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended
13 by inserting before the semicolon the following: "or is in
14 connection with the purchase or other transfer of the prop-
15 crty for which the covcra,ge is provided (regardless of
16 whether a loan is involved in the purchase or transfer
17 transaction), but only when such initial purchase of cov-
18 erage is made not later 30 days after such making, in-
19 creasing, extension, or renewal of the loan or not later
20 than 30 days after such purchase or other transfer of the
21 property, as applicable".
Z2 SEC. 6. ENFORCEMENT.
23 Section 102 (f) of the Flood Disaster Protection Act
24 of 1973 (42 U.S.C. 4012a(f)) is amended-
25 (1) in paragraph (5)-
•HR 3121 IH
13
1 (A) in the first sentence, by striking
2 "$3~0" and inserting "$2,000"; and
3 (13) in the last sentence, by striking
4 "$100,000" and inserting "$1,000,000; c~ccpt
5 that such limitation shall not apply to a rcgu-
6 laced lending institution or enterprise fora cal-
l endar year if, in any three (or more) of the five
8 calendar years immediately preceding such cal-
9 endar year, the total amount of penalties as-
10 sessed under this subsection against such lend-
11 ing institution or enterprise was $1,000,000";
12 and
13 (2) in paragraph (6), by adding after the period
14 at the end the following: "No penalty may he im-
15 posed under this subsection on a, rcg~ula,tcd lending
16 institution or enterprise that has made a good faith
17 effort to comply with the requirements of the provi-
18 lions referred to in paragraph (2) or for any non-
19 material violation of such requirements.".
2O SEC. 7. MULTIPERIL COVERAGE FOR FLOOD AND WIND-
21 STORM.
22 (a) IN C~ENER,AL.-Section 1304 of the National
23 Flood Insurance Act of 1968 (42 U.S.C. 4011.) is amend-
24 ed-
•HR 3121 IH
14
1 (1) by redesignating subsection (c) as sub-
2 section (d); and
3 (2) by inserting after subsection (b) the fol-
4 lo~~ring new subsection:
5 "(c) MULTIPERIL COVERAUE FOR DAMAGE FROM
6 FLOOD OR WINDSTORM.-
7 "(1) IN GENERAL.-The national flood insur-
8 once program established pLn•suant to subsection (a)
9 shall enable the purchase of optional insurance
10 against loss resulting from physical damage to or
11 loss of real property or personal property related
12 thereto located in the United States arising from
13 a,ny flood or windstorm, subject to the limitations in
14 this subsection and section 1306(b).
15 "(2) COMMUNITY PARTICIPATION REQUIRE-
16 MENT.-Multiperil coverage pursuant to this sub-
17 section may not be provided in any area (or subdivi-
18 Sion thereof) unless an appropriate public body shall
19 have adopted adequate land use and control rneas-
20 ures (with effective enforcement provisions) which
21 the Director finds are consistent with the com-
22 prehensive criteria for land management and use re-
23 lating to windstorms establish pursuant to section
24 1361(d)(2).
•HR 3121 IH
15
1 "(3) PROHIBITION AGAINST DUPLICATIVE COV-
2 EI-taGE.-Nlultiperil coverage pursuant to this sub-
3 section ma,y not be pro~-idcd with respect to a,ny
4 structure (or the personal property related thereto)
5 for any period during which such structure is cov-
6 Bred, at any time, by flood insurance coverage made
7 available under this title.
8 "(4) NATURE OF COVERAGE.-Mt~ltiperil cov-
9 erage pursuant to this subsection shall-
10 "(A) cover losses only from physical dam-
11 age resulting from flooding or windstorm.; and
12 "(B) provide for approval and payment of
13 claims under such coverage upon proof that
14 such loss must have resulted from either wind-
15 storm or flooding, but shall not require for a,p-
16 proval and payment of a claim that the specific
17 cause of the loss, whether windstorm or flood-
18 ing, be distinguished or identified.
19 "(5) ACTUARIAL RATES.-Multiperil coverage
20 pursuant to this subsection shall be made available
21 for purchase for a property only at chargeable risk
22 premium rates that, based on consideration of the
23 risks involved and accepted actuarial principles, and
24 including operating costs and allowance and admin-
25 istrative expenses, are required in order to make
•HR 3121 IH
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such coverage available on an actuarial basis for the
type and class of properties covered.
"(6) TERMS OF COVERAGE.-The Director
shall, after consultation with persons and entities rc-
fcrrcd to in section 1306(x), provide by regulation
for the general terms and conditions of insurability
which shall be applicable to properties eligible for
multiperil coverage under this subsection, subject to
the provisions of this subsection, including-
"(A) the types, classes, and locations of
any such properties which shall be eliblble for•
such coverage, which shall include residential
a,nd nonresidential properties;
"(>;) subject to paragraph (7), the nature
and limits of loss or damage in any areas (or
subdivisions thereof) which may be covered by
such coverage;
"(C) the classification, limitation, and re-
jection of any risks wlrich may be ad~~isable;
"(D) appropriate minimum premiums;
"(E) appropriate loss deductibles; and
"(F) any other terms and conditions relat-
ing to insurance coverage or exclusion that may
be necessary to carry out this subsection.
•HR 3121 IH
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"(7) LIMITATIONS ON AMOUNT OF COV-
ERAGE.-The regulations issued pursuant to para-
graph (6) sha11 provide that the aggregate liability
under multiperil coverage rnade available under this
subsection shall not exceed the lesser of the replace-
ment cost for covered losses or the following
amounts, as applicable:
"(A) RESIDENTIAL STRUCTURES.-In the
case of residential properties-
"(i) for any single-family dwelling,
$500,000; and
"(ii) for any structure containing
more than one dwelling unit, $500,000 for
each separate dwelling unit in the struc-
ture; and
"(iii) $150,000 per dwelling unit
for-
"(I) any contents related to such
unit; and
"(II) any necessary increases in
living expenses incurred by the in-
sured when losses from flooding or
windstorm make the residence unfit to
live in.
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1 "(B) NONRESIDENTIAL PROPER'hIES.-In
2 the case of nonresidential properties (including
3 church properties)-
4 "(i) $1,000,000 for any sirrglc struc-
5 Lure; anal
6 "(ii) $750,000 for-
? "(I) any contents related to such
8 structure;
9 "(II) in the case of any nonresi-
10 dential property that is a business
11 property, any losses resulting from
12 any partial or total interruption of the
13 insured's business caused by damage
14 to, or loss of, such property from
15 flooding or windstorm, except that for
16 purposes of such coverage, losses shall
17 be determined based on the profits the
18 covered business would have earned,
19 based on previous financial records,
20 had the flood or windstorm not oc-
21 curred.".
22 (b) PROHIBITION AGAINST DUPLICATIVE COV-
23 ERAGE.-The National Flood Insurance Act of 1968 is
24 amended by inserting after section 1313 (42 U.S.C. 4020)
25 the following new section;
•HR 3121 IH
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1 "PROHIBITION AGAINST DUPLICATIVE COVERAGE
2 "SEC. 1314. Flood insurance under this titlemav not
3 be provided with respect to any structure (or the personal
4 property related thereto) for any period during which such
5 structure is covered, at any time, by multipcril insurance
6 coverage made available pursuant to section 1304(c).".
7 (e) COMPLIANCE WITH STATE AND LOCAL LAW.-
8 Section 1316 of the National Flood Insurance Act of 1965
9 (42 U.S.C. 4023) is amended-
10 (1) by inserting "(a) FLOOD PROTECTION
11 MEASURES.-" before "No new"; and
12 (2) by adding at the end the following new sub-
13 section:
14 "(b) WINDSTORM PROTECTION MEASURES.-Nn new
15 multiperil coverage shall be provided under section
16 1304(c) for any property that the Director finds has been
17 declared by a duly constituted State or local zoning au-
18 thorny, or other authorized public body to be in violation
19 of State or local laws, regulations, or ordinances, which
20 are intended to reduce damage caused by windstorms.".
21 (d) CRI'hERIA FOR LAND MANAGEyIENT AND USE.-
22 Section 1361 of the National Flood Insurance Act of 196
23 (42 U.S.C. 4102) is amended by adding at the end the
24 following new subsection:
25 "(d) WINDSTORMS.-
•HR 3121 IH
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"(l) STUDIES A\D INVESTIGATIONS.-The Di-
rector shall carry out studies and investigations
under this section to determine appropriate mc3s-
ures in windstorm-prone areas as to land manage-
ment and use, «-indstorm zoning, and windstorm
damage prevention, and may enter into contracts,
agreements, and other appropriate arrangements to
carry out such activities. Such studies and investiga-
tions shall include laws, regulations, and ordinance
relating to the orderly development and use of areas
subject to damage from windstorm risks, and zoning
building codes, building permits, and subdivision and
other building restrictions for such areas.
"(2) CRITERIA.-nn the basis of the studies
and investigations pursuant to paragraph (1) and
such other information as may be appropriate, the
Direct shall establish comprehensive criteria de-
signed to encourage, where necessary, the adoption
of adequate State and local measures which, to the
maximum extent feasible, will assist in reducin~;~
damage caused by windstorms.
"(3) COORDINATION WIT~I STATE AND LOCAL
GovERNNIENTS.-The Director shall work closely
with and provide any necessary technical assistance
to State, interstate, and local governmental agencies,
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1 to encourage the application of criteria established
2 under ~aragra~h (2) and the adoption and enforce-
3 mcnt of measures referred to in such ~a~ragra~~h .".
4 (c) DEFINITIONS.-Section 1370 of the National
5 Flood Insurance Act of 1968 (42 U.S.C. 4121) is amend-
6 ed-
7 (1) in paragraph (14), by striking "and" at the
8 end;
9 (2) in paragraph (15) by striking the period at
10 the end and inserting "; and"; and
11 (3) by adding at the end the following new
12 paragraph:
13 "(16) the term `windstorm' means any hurri-
14 cane, tornado, cyclone, typhoon, or other wind
15 event.".
1 E) SEC. S. MAXIMUM COVERAGE LIMITS.
17 Subsection (U) of section 1306 of the National Flood
18 Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended-
19 (I) in paragraph (2), by striking "$250,000"
20 and inserting• "$335,000";
21 (2) in paragraph (3), by striking "$100,000"
22 and inserting "135,000"; and
23 (3) in paragraph (4), by striping "$500,000"
24 each .place such term appears and inserting
25 "$670,000".
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1 SEC. 9. COVERAGE FOR ADDITIONAL LIVING EXPENSES,
2 BASEMENT IMPROVEMENTS, BUSINESS
3 INTERRUPTION, AND REPLACEMENT COST
4 OF CONTENTS.
5 Subsection (b) of section 1306 of the National Flood
6 Insurance Act of 196b (42 U.S.C. 4013) is amended-
? (1) in paragraph (4), by striking "and" at the
8 end;
9 (2) in paragraph (5)-
10 (A) by inserting• "pursuant to paragraph
11 (2), (3), or (4)" after "any flood insurance cov-
12 crape"; and
13 (B) by striking the period at the end and
14 inserting a semicolon.; and
15 (3) by adding• at the end the following new
16 paragraphs:
17 "(6) in the case of any residential property,
18 each renewal or new contract for flood insurance
19 coverage shall provide not less than $1,000 aggre-
20 gate liability per dwelling unit for any necessary in-
21 creases in living expenses incurred by the insured
22 when losses from x flood make the residence unfit to
23 live in, which coverage shall be available only at
24 chargeable rates that arc not less than the estimated
25 premium rates for such coverage determined in ac-
26 cordance with section 1307(x)(1);
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"(7) in the case of any residential property, op-
tional coverage for additional living exhenses de-
scribed in paragraph (6) shall be made a,va,ila,blc to
every insured upon renewal and every applicant in
excess of the limits pro~~idcd in paragraph (6) in
such amounts and at such rates as the Director
shall establish, except that such chargeable rates
shall not be less than the estimated premium rates
for such coverage determined in accordance with sec-
tion 1307(x)(1);
"(8) in the case of any residential property, op-
tional coverage for losses, resulting from floods, to
improvements and personal property located in base-
ments, crawl spaces, and other enclosed areas under
buildings that a.r•c not covered by primary flood in-
surance coverage under this title, shall be made
available to every insured upon renewal and every
applicant, except that such coverage shall be made
available only a,t chargeable rates that are not less
than the estimated premium rates for such coverage
determined in accordance with section 1307(x)(1);
"(9) in the case of any commercial property,
optional coverage for losses resulting from any par-
tial or total interruption of the insured's business
caused by damage to, or loss of, such property from
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a flood shall be made available to every insured upon
renewal and every applicant, except that-
"(A) for purposes of such covcra,gc, losses
shall be determined bascd on the profits the
covered business would have earned, based on
previous financial records, had the flood not oc-
curred; and
"(B) such coverage shall be made available
only at chargeable rates that are not less than
the estimated premium rates for such co~-erxge
determined in accordance with section
1307(x)(1); and
"(10) in the case of any residential property
and any commercial property, optional coverage for
the full replacement costs of any contents related to
the structure that exceed the limits of coverage oth-
erwise provided in this subsection shall be made
available to every insured upon renewal and every
applicant, except that such coverage shall be made
available only at chargeable rates that are not less
than the estimated premium rates for such coverage
determined in accordance with section 1307(x) (1).".
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1 SEC. 10. NOTIFICATION TO TENANTS OF AVAILABILITY OF
2 CONTENTS INSURANCE.
3 The National Flood Insurance Act of 1968 is amend-
4 ed by inserting after section 1308 (42 U.S.C. 4015) the
5 following new section:
E "SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY
7 OF CONTENTS INSURANCE.
8 "(a) IN GENERAL.-The Director shall, upon enter-
9 ing into a contract for flood insurance coverage under this
10 title for any property located in a,n area having spccia,l
11 flood haza,rds-
12 "(1) provide to the insured sufficient copies of
13 the notice developed pursuant to subsection (b) to
14 provide for distribution of a copy of such notice to
15 each tenant of the property; and
16 "(2) strongly encourage the insured to provide
17 a copy to each such tenant and to each new tenant
18 upon commencement of such a tenancy.
19 "(b) NOTICE.-Notice to a tenant of a property in
20 accordance with this subsection is written notice that
21 clearly informs a tenant-
22 "(1) that the property is located in an area hav-
23 ing special flood hazards;
24 "(2) that flood insurance covcra,ge is ava,ilablc
25 under the national flood insurance program under
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26
1 this title for contents of the unit or structure leased
2 by the tenant;
3 "(3) of the maximum amount of such coverage
4 for contents available under this title at that time;
5 and
6 "(4) of where to obtain information regarding
7 how to obtain such coverage, including• a, telephone
8 number, mailing address, and location on the `Uor•ld
9 Wide Web of the Director where such information is
10 mailable.".
I1 SEC. 11. INCREASE IN ANNUAL LIMITATION ON PREMIUM
12 INCREASES.
13 Section 1308(e) of the National Flood Insurance Act
14 of 1968 (42 U.S.C. 4015(e)) is amended by striking "10
15 percent" and inserting "15 percent".
1 C SEC. 12. INCREASE IN BORROWING AUTHORITY.
17 (a) BORROtiVI\G AUTIORITY.-The first sentence of
18 subsection (a) of section 1309 of the National Flood In-
19 surance Act of 1968 (42 U.S.C. 4016(x)), as amended by
20 the National Flood Insurance Program Further Enhanced
21 Borrowing Authority Act of 2005 (Public Law 1.09-106;
22 119 Stat. 2288), is amended by striking
23 "$20,775,000,000" and inserting "$21,500,000,000".
24 (b) FEMA REPORT.-Not later thin the expiration
25 of the 6-month period beginning on the date of the enact-
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1 went of this Act, the Director of the Federal Emergency
2 Management Agency shall submit a, report to the Congress
3 setting forth a, plan for repaying any amounts borrowed
4 pursuant to increase in borrowing authority authorized
5 under the amendments made by subsection (a).
6 SEC. 13. FEMA PARTICIPATION IN STATE DISASTER CLAIMS
7 MEDIATION PROGRAMS.
8 Chapter I of the National Flood Insurance Act of
9 1968 (42 U.S.C. 4011 et seq.) is amended by adding at
10 the end the following new section:
11 "SEC. 1325. FEMA PARTICIPATION IN STATE DISASTER
12 CLAIMS MEDIATION PROGRAMS.
13 "(a) REQUIREMENT TO PARTICIPATE.-In the case
14 of the occurrence of a natural catastrophe that may have
15 resulted in flood damage covcrcd by insurance made avail-
16 able under the national flood insurance program and a, loss
17 covcrcd by personal lines residential property insurance
18 policy, upon request made by the insurance commissioner
19 of a State (or such other official responsible for• regulating
20 the business of insurance in the State) for the participa-
21 tion of representatives of the Director in a program spon-
22 Bored by such State for nonbinding mediation of insurance
23 claims resulting from a natural catastrophe, the Director
24 shall cause such representatives to participate in such
25 State program, when claims under the national flood in-
•HR 3121 IH
28
1 surance program are involved, to expedite settlement of
2 good damage claims resulting from such catastrophe.
3 "(b) EXTENT of PARTICIPATION.-Participation by
4 representatives of the Director required under subsection
5 (a) with respect to flood damage claims resulting from a
6 natural catastrophe shall include-
? "(1) providing adjusters certified for purposes
8 of the national flood insurance prog~r•a,m who are au-
9 thorized to settle claims against such program re-
10 sulting from such catastrophe in amounts up to the
11 limits of policies under such program;
12 "(2) requiring such adjusters to attend State-
13 sponsored mediation meetings regarding flood insur-
14 ance claims resulting from such catastrophe a~t times
15 and places as may be arranged by the Sta,tc;
16 "(3) participating in good-faith negotiations to-
17 ward the settlement of such claims with policy-
18 holders of coverage made available under the na-
19 tional flood insurance program; and
20 "(4) finalizing the settlement of such claims on
21 behalf of the national flood insurance program with
22 such policyholders.
23 "(c) COORDINATION.-Representatives of the Direc-
24 tor who participate pursuant to this section in a State-
25 sponsored mediation program with respect to a natural ca-
•HR 3121 IH
29
1 tastrophe shall at all times coordinate their activities with
2 insurance officials of the State and representatives of in-
3 surcrs for the purpose of consolidating and expediting the
4 settlement of claims under the national flood insurance
5 program resulting from such catastrophe at the earliest
6 possible time.
7 "(d) MEDIATION PROCEEDINGS AND PRIVILEGED
8 DOCUMENTS. As a condition of the participation of Rep-
9 resentatives of the Director pursuant to this section in
10 State-sponsored mediation, all statements made and docu-
11 menu produced pursuant to such mediation involving rep-
12 resentatives of the Director shall be deemed privileged and
13 confidential settlement negotiations made in anticipation
14 of litigation.
15 "(C) EFFECT OF PARTICIPATION ON LIABILITY,
16 RIGHT, AND OBLIGATIONS.-Participation of Represcnta-
17 fives of the Director pursuant to this section in Stato-
18 sponsored mediation shall not affect or expand the liability
19 of any party in contract or in tort, nor shall it affect the
20 rights or obligations of the parties a provided in the
21 Standard Flood Insurance Policy under the national flood
22 insurance program, regulations of the Federal Emergency
23 Management Agency, this Act, or Federal common law.
24 "(f) EXCLUSlVE FEDERAL, JURISDICTION.-Partici-
25 pation of Representatives of the Director pursuant to this
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1 section in State-sponsored mediation shall not alter,
2 change or modifi~ the original exclusive jurisdiction of
3 United States courts as provided in this Act.
4 "(g) COST LIMITATION.-Nothing in this section
5 shall be construed to require the Director or representa-
6 fives of the Director to pay additional mediation fees relat-
7 ing to flood claims associated with a State-sponsored me-
8 diation program in which representatives of the Director
9 participate.
10 "(h) EXCEPTION.-In the case of the occurrence of
11 a natural catastrophe that results in flood damage claims
12 under the national flood insurance program and does not
13 result in any loss covered by a, personal lines residential
14 property insurance police
15 "(1) this section shall not apply; and
16 "(2) the provisions of the Standard Flood In-
17 surancc Policy under the national flood insurance
18 program and the appeals process established pursu-
19 ant to section 205 of the Bunning-Bereueter-
20 Bhamenauer Flood Insurance Reform Act of 2004
21 (Public Lew 108-264; 118 Stat. 726) and regula-
22 tions issued pursuant to such section shall apply ex-
23 elusively.
24 "(i~ REPRESENTATNES OF DIRECTOR.-For pur-
25 poses of this section, the term `representatives of the Di-
•HR 3121 IH
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1 rector' means representatives of the national flood insur-
2 ante program who pa,rticipa,te in the appeals process es-
3 tablishcd pursuant to section 205 of the Bunning-
4 Bercuctcr-Blumcnaucr Flood Insurance Reform Act of
5 2004 (Public Lam 108-264; ll8 Stat. 726) and rcgula-
6 tions issued pursuant to such section.".
7 SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.
8 Section 1320 of the National Flood Insurance Act of
9 1968 (42 U.S.C. 4027) is amended-
10 (1) in the section heading, by striking "REPORT
11 TO THE PRESIDENT" and inserting "ANNUAL RE-
12 PORT TO CONGRESS";
13 (2) in subsection (a,)-
14 (A) by striking "biennially";
15 (B) by striking "the President for submis-
16 lion to"; and
17 (C) uy inserting "not later than June 30
18 of each year" before the period at the end;
19 (3) in subsection (b), by striking "biennial" and
20 inserting "annual"; and
21 (4) by adding at the end the following new sub-
22 section:
23 "(c) FINANCIAL STATUS of PROGRA1lI.-The report
24 under this section for each year shall include information
25 regarding the financial status of the national flood insur-
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1 ance program under this title, including a description of
2 the financial status of the National Flood Insurance Fund
3 and current and projected levels of claims, premium rc-
4 ccipts, etpenses, and borrowing under the program.".
S SEC. 15. FLOOD INSURANCE OUTREACH GRANTS.
6 Chapter I of the National Flood Insurance Act of
7 1968 (42 LJ.S.C. 4011 et sed.), as amended by the pre-
8 ceding pro`~isions of this Act, is firrther amended by add-
9 ing at the end the following new section:
10 "SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWN-
11 ERS AND RENTERS.
12 "(a) IN GENERAL, The Director may, to the extent
13 amounts are made available pursuant to subsection (h),
14 make grants to local governmental a.g•encies responsible for
15 tloodpla,in management activities (including such agencies
16 of Indians tribes, as such term is defined in section 4 of
17 tlic Native American Housing Assistance and Self-Deter-
18 mination Act of 1996 (25 U.S.C. 4103)) in communities
19 that participate in the; national flood insurance program
20 under this title, for use by such a~•encies to carry out out-
21 reach activities to encourage and facilitate the purchase
22 of flood insurance protection under this Act by o`vrrers and
23 renters of properties in such communities and to promote
24 educational activities that increase awareness of flood risk
25 reduction.
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33
1 "(b) OUTREACH ACTIVII`IES.-Amounts from a grant
2 under this section shall be used only for activities designed
3 to-
4 "(1) identify owrrcrs and rcntcrs of properties
5 in comrnunitics that participate in the national flood
6 insurance program, including owners of residential
7 and commercial properties;
8 "(2) notify such owners and renters when their
9 properties become included in, or when they are ex-
10 eluded from, an area having special flood hazards
11 and the effect of such inclusion or exclusion on the
12 applicability of the mandatory flood insurance pur-
13 chase requirement under section 102 of the Flood
14 Disaster Protection Act of 1973 (42 U.S.C. 4012x,)
15 to such properties;
16 "(3) educate such owners and rcntcrs regarding
17 the flood risk and reduction of this risk in their
18 community, including the continued flood risks to
19 areas that are no longer subject to the flood insur•-
20 ance mandatory purchase requirement;
21 "(4) educate such owners and renters regarding
22 the benefits and costs of maintaining or acquiring
23 flood insurance, including, where applicable, lower-
24 cost preferred risk policies under this title for such
25 properties a,nd the contents of such properties; and
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1 "(5) encouraging such owners and renters to
2 maintain or acquire such coverage.
3 "(c) COST SNARING REQUIREMENT.-
4 "(1) IN GENERAL-In any fiscal year, the Di-
5 rector may not provide a grant under this section to
6 a local governmental agency in an amount exceeding
7 3 times the amount that the agency certifies, as the
8 Director shall require, that the agency will con-
9 tribute from non-Federal funds to be used with
10 grant amounts only for carrying out activities de-
ll scribed in subsection (b).
12 "(2) NoN-FEDERAL FUNDS.-For purposes of
13 this subsection, the term `non-Federal funds' in-
14 eludes State or local government agency amounts,
15 in-kind contributions, a,ny salar~~ paid to staff to
16 carry out the eli~~ble a,etivities of the grant recipient,
17 the value of the time and services contributed by vol-
18 unteers to carry out such services (at a rate deter-
19 mined by the Director), and the value of any do-
20 nated material or building and the value of any lease
21 on a building.
22 "(d) ADMINISTRATIE COST LIMITATION.-Notwith-
23 standing subsection (b), the Director may use not more
24 than 5 percent of amounts made available under sub-
25 section (g) to cover salaries, expenses, and other adminis-
•HR 3121 IH
35
1 trative costs incurred by the Director in making grants
2 and provide assistance under this section.
3 "(C) APPLICATION AND SELECTION.-
4 "(1) IN GENERAL,-The Director shall provide
5 for local governmental agencies described in sub-
6 section (a) to submit applications for grants under
7 this section and for competitive selection, based on
8 criteria established by the Director, of agencies sub-
9 muting such applications to receive such grants.
10 "(2) SELECTION CONSIDERATIONS.-In sclect-
11 ing applications of local government agencies to re-
12 ceive grants under paragraph (1), the Director shall
1'~ rnnci~lnr-
14 "(~1) the existence of a, cooperative tech-
15 nical pa,rtncr a,grcement bctwcen the local gov-
16 crnmental agency a,nd the Federal Emcrgcncy
17 Management Ageney;
18 "(B) the history of flood losses in the rel-
19 eva,nt area that have occurred to properties,
20 both inside and outside the special flood haz-
21 ards zones, which are not covered by flood in-
22 surance coverage;
23 "(C) the estimated percentage of high-risk
24 properties located in the relevant area that are
25 not covered by flood insurance;
•HR 3121 IH
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1 "(D) demonstrated success of the local
2 governmental agency in generating volunta~r~~
3 pur•chasc of flood insurance; and
4 "(E) demonstrated technical capacity of
5 the local governmental agency for outreach to
6 individual property owners.
7 "(f) DIRECT OUTREACH by FEMA.-In each fiscal
8 year that amounts for grants are made available pursuant
9 to subsection (h), the Director may use not more than 50
10 percent of such amounts to carry out, and to enter into
11 contracts with other entities to carry out, activities de-
12 scribed in subsection (b) in areas that the Director deter-
13 mines have the most immediate need for such acti~-ities.
14 "(g) REPORTNG.-Each local government agency
15 that receives a ~ ant under this section, and ca,ch entity
16 that receives amounts pursuant to subsection (f), shall
17 submit a report to the Director, not later than 12 months
18 after such amounts are first received, which shall include
19 such information as the Director considers appropriate to
20 describe the activities conducted using such amounts and
21 the effect of such activities on the retention or acquisition
22 of flood insurance coverage.
23 "(h) AUTHORIZATION OF APPROPRIATIONS.-There
24 is authorized to be appropriated for grants under this sec-
•HR 3121 IH
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1 tion $50,000,000 for each of fiscal years 2008 through
2 2012.".
3 SEC. 16. GRANTS FOR DIRECT FUNDING OF MITIGATION
4 ACTIVITIES FOR INDIVIDUAL REPETITIVE
S CLAIMS PROPERTIES.
6 (a) DIRECT GRANTS TO OWNERS.-Section 1323 of
7 the National Flood Insurance Act of 1968 (42 U.S.C.
8 4030) is amended-
9 (1) in the section heading, by inser•ting• "DI-
10 RECT" before "GRANTS"; and
ll (2) in the matter in subsection (a) that pre-
12 cedes paragraph (1.)-
13 (11) by inserting ", to owners of such prop-
14 ernes," before "for mitigation actions"; and
15 (13) by striking• "1" and inserting "two".
16 (b) AVAILABILITY of FUNDS.-Paragraph (9) of scc-
17 Lion 131.0(x) of the National Flood Insurance Act of 1968
18 (42 U.S.C. 4017(x)) is amended by inserting "which shall
19 remain available until upended," after "and fiscal ~~ear,".
2O SEC. 17. EXTENSION OF PILOT PROGRAM FOR MITIGATION
2I OF SEVERE REPETITIVE LOSS PROPERTIES.
22 Section 1361A of the National Flood Insnrance Act
23 of 1968 (42 U.S.C. 4102x) is amended-
•HR 3121 IH
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1 (1) in subsection (k)(1), by striking "2005,
2 2006, 2007, 2008, and 2009" and inserting "2008,
3 2009, 2010, 2011, and 2012"; and
4 (2) by striking subscction (1).
S SEC. 18. FLOOD MITIGATION ASSISTANCE PROGRAM.
E) (a) ELIGIBILITY OF PROPERTY DEMOLITION A1VD
7 REBUILDING.-Section ].366(e)(5)(B) of the National
8 Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B))
9 is amended by striking "or floodproofing" and inserting
10 "floodproofing, or demolition and rebuilding".
11 (b) ELINIINATION OF LIMITATIONS ON AGGREGATE
12 A1~IOUNT of ASSISTANCE.-Section 1366 of the National
13 Flood Insurance Act of 1968 is amended by striking sub-
14 section (f).
15 (c) SOURCE OF FUNDS.-subscction (a.) of scction
16 1367 of the Na~tiona,l Flood Insurancc Act of 1968 (42
17 LJ.S.C. 4104d(a)) is amcndcd by adding at the cnd the
18 following new sentence: "Notwithstanding any other pro~-i-
19 Sion of, this title, amounts made available pursuant to this
20 subsection shall not be subject to offsetting• collections
21 through premium rates for flood insurance coverage under
22 this title.".
23 (d) TECHNICAL AMENDMENTS.-Section 1.366 of the
24 National Flood Insurance Act of 1968 is amended-
•HR 3121 IH
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1 (1) by striking "subsection (g)" each place such
2 term appears in subsections (h) and (i)(2) and in-
3 sorting "subsection (f)"; and
4 (2) by redesignating subsections (g) through (k)
5 as subsections (f) through (j), respectively.
E) SEC. 19. GAO STUDY OF METHODS TO INCREASE FLOOD IN-
7 SURANCE PROGRAM PARTICIPATION BY LOW-
$ INCOME FAMILIES.
9 (a) I~ GENERAL.-The Comptroller General of the
10 United States shall conduct a study to identify and ana-
11 lyze potential methods, practices, and incentives that
12 would increase the extent to which low-income families (as
13 such term is defined in section 3 (b) of the United States
14 Housing Act of 1937 (42 U.S.C. 1437a,(b))) that own resi-
15 dential properties located within a,rcas having special flood
16 hazards purchase flood insurance coverage for such prop-
17 crtics under the national flood insurance program. In con-
18 ducting the study, the Comptroller General shall analyze
19 the effectiveness and costs of the various methods, prac-
20 tires, and incentives identifies, including their effects on
21 the national flood insurance program.
22 (b) REPORT.-The Comptroller General shall submit
23 to the Congress a report setting forth the conclusions of
24 the study under this section not later than 12 months
25 after the date of the enactment of this Act.
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1 SEC. 20. NOTICE OF AVAILABILITY OF FLOOD INSURANCE
2 AND ESCROW IN RESPA GOOD FAITH ESTI-
3 MATE.
4 Subsection (c) of section 5 of the Real Estate Settle-
s ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is
6 amended by adding at the end the following new sentence:
7 "Each such good faith estimate shall include the following
8 conspicuous statements and information: (1) that flood in-
9 surance coverage for residential real estate is generally
10 available under the national flood insurance program
11 whether or not the real estate is located in an area having
12 special flood hazards and that, to obtain such coverage,
13 a home owner or purchaser should contact the national
14 flood insurance program; (2) a telephone number and a.
15 location on the World Wide Web by which a home owner
16 or purchaser can contact the national flood insurance pro-
17 gram; and (3) that the escrowing of flood insurance pay-
18 menu is required. for many loans under section 102(d) of
19 the Flood Disaster Protection Act of 1973, and ma,,y be
20 a, convenient and a~a,ila,ble option with respect to other
21 loans.".
22 SEC. 21. REITERATION OF FEMA RESPONSIBILITIES UNDER
Z3 2004 REFORM ACT.
24 (a) APPEALS PROCESS. As directed in section 205
25 of the Bunning-Bcrcutcr-Blumcnaucr Flood Insurance
26 Reform Act of 2004 (42 U.S.C. 4011 note), the Director
•HR 3121 IH
41
1 of the Federal Emergency Management Agency is again
2 directed to, not later than 90 days a,f'ter the date of the
3 enactment of this Act, establish an appeals process
4 through which holders of a flood inszzranec policy may ap-
5 peal the decisions, with respect to claims, proofs of loss,
6 and loss estimates relating to such flood insurance policy
7 as required by such section.
$ (b) MININIU~VI TRAINING AND EDUCATION REQUIRE-
S tiIEN2`s.-The Director of the Federal Emergency Man-
10 agement Agency is directed to continue to «~ork with the
ll insurance industry, State insurance regulators, and other
12 interested parties to implement the minimum training and
13 education standards for all insurance agents who sell flood
14 insurance policies that were established by the Director
15 under the notice published September 1, 2005 (70 Fed.
16 Reg. 52117) pursuant, to section 207 of the Bunning-Bc-
17 rcuter-Blumenauer Flood Insurance Reform Act of 2004
18 (42 U.S.C. 4011 note).
19 (c) REPORT.-Not later than the expiration of the 6-
20 month period beginrung• on the date of the enactment of
21 this Act, the Director of the Federal Emergency Ma,nage-
22 ment Agency shall submit a report to the Congress de-
23 scribing• the implementation of each provision of the
24 Bunning-Bereuter-Blumenauer Flood Insurance Reform.
25 Act of 2004 (Public Law 108-264) and identii~~ing each
•HR 3121 IH
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1 regulation, order, notice, and other material issued by the
2 Director in implementing each such provision.
3 SEC. 22. ONGOING MODERNIZATION OF FLOOD MAPS AND
4 ELEVATION STANDARDS.
S (a) ONGOING FLOOD 1~It1i'I'ING PROGI~4D~7.-SCCt10n
6 1360 of the National Flood Insurance Act of 1968 (42
7 U.S.C. 4101) is amended by adding at the end the fol-
8 lowing new subsection:
9 "(k) ONGOING PROGRAM TO REVIEW, UPDATE, AND
1 O MAINTAIN FLOOD INSURANCE PROGRAM MAPS.-
11 "(1) IN GENERAL.-The Director, in coordina-
12 tion with the Technical Mapping Advisory Council
13 established pursuant to section 576 of the l~~ational
14 Flood Insurance Reform Act of 1994 (42 U.S.C.
15 4101 mote) and section 22(b) of the Flood Insurance
16 Reform and Modcrniza,tion Act of 2007, shall cstab-
17 lish an ongoing program under which the Director
18 shall review, update, and maintain national flood in-
19 surance program rate maps in accordance with this
20 subsection.
21 "(2) INCLUSIONS.-
22 "(A) COVERED AREAS.-Each map np-
23 dated under this subsection shall include a dc-
24 piction of-
25 "(i) the 500-year floodplain;
.HR 3121 IH
43
"(ii) area's that could be inundated as
a result of the failure of a levee, as deter-
mined ~y the Director; a,nd
"(iii) areas that could be inundated as
a result of the failure of a dam, as identi-
fied under the National Dam Safety Pro-
gram Act (33 U.S.C. 467 ct seg.).
"(B) OTHER INCLUSIONS.-In updating'
maps under this subsection, the Director may
include-
"(i) any relevant information on
coastal inundation from-
"(I) an applicable inundation
map of the Corps of Engineers; and
"(II) data of the 1\~ationa~l Occ-
a.nic and Atmospheric Administration
relating to storm surge modeling;
"(ii) any rele~~ant information of the
Geographical Ser~~icc on stream flows, wa-
tershed characteristics, and topography
that is useful in the identification of flood
hazard areas, as determined by the Direc-
tor; and
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44
1 "(iii) a, description of any 1lazard that
2 might impact flooding, including, as deter-
3 Inincd by the Director-
4 "(I) land subsidence and coastal
5 erosion areas;
"(II) sediment flow areas;
7 "(III) mud flotia areas;
8 "(N) ice jam areas; and
9 "(V) areas on coasts and inland
10 that are subject to the failure of
11 structural protective works, such as
12 levees, dams, and floodwalls.
13 "(3) rSTANDAPDS.-In updating and ma,inta,in-
14 ing maps under this subsection, the Director shall
15 csta,blish standards to-
16 "(A) ensure that maps a,rc adequate for-
17 "(i) flood risk determinations; and
18 "(ii) use by State and local govern-
19 mcnts in managing de~-elopment to reduce
20 the risk of flooding;
21 "(B) facilitate the Director, in conjunction
22 with State and local governments, to identify
23 and use consistent methods of data collection
24 and analysis in developing maps for commu-
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45
pities with similar flood risks, as determined by
the Director; and
"(C) ensure that emerging weather forc-
casting technology is used, where practicable, in
flood map calculations and the identification of
potential risk areas.
"(4) HURRICANES KATRINA AND RITA MAPPING
PRIORITY.-In updating and maintaining maps
under this subsection, the Director shall-
"(A) give priority to the updating and
maintenance of maps of coastal areas affected
by Hurricane Katrina or Iurricane Rita to pro-
vide guidance with respect to hurricane recovery
efforts; and
"(B) use the process of updating and
maintaining maps under subparagraph (A) as a
model for updating and maintaining other
maps.
"(5) EDUCATION PROGRAPL-The Director
shall, after each update to a flood insurance pro-
gram rate map, in consultation with the chief execu-
tive officer of each community affected by the up-
date, conduct a program to educate each such com-
munity about the update to the flood insurance pro-
gram rate map and the effects of the update.
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1 "(6) ANNUAL REPORT.-Not later than June
2 30 of each year, the Director shall submit a report
3 to the Con~ress describing, for the preceding 12-
4 month. period, the activities of the Director under
5 the program under this section and the reviews and
6 updates of flood insurance pro~,7°am rate maps wn-
7 ducted under the program. Each such annual report
8 shall contain the most recent report of the Technical
9 Mapping Advisory Council pursuant to section
10 576(c)(3) of the National Flood Insurance Reform
11 Act of 1994 (42 U.S.C. 41.01 note).
12 "(7) AUTHORIZATION OF APPROPRIATIONS.-
13 There is authorized to be appropriated to the Direc-
14 for to carry out this subsection X400,000,000 for
15 each of fiscal years 2005 through 2013.".
16 (b) REESTABLISHMENT OF TECHNICAL MAPPING
17 ADVISORY COUNCIL FOR ONGOING MAPPING PROGRAM.-
18 (1) REESTABLISHMENT. There is reestab-
19 lished the Technical Mapping Advisory Council, in
20 accordance with this subsection and section 5 76 of
21 the National Flood Insurance Reform Act of 1.994
22 (42 U.S.C. 4101 note).
23 (2) MEMBERSHIP.-Paragraph (1) of section
24 576(b) of the National Flood Insurance Reform Act
25 of 1994 (42 U.S.C. 4101 note) is amended-
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47
1 (A) in the matter preceding subpa,ra,gra,ph
2 (A), b~' striking ``10" and msertmg ``14";
3 (B) by rcdcsignating• suhpara,gra.phs (E),
4 (F), (G), (H), (I), and (J) as subparagraphs
5 (F), (C~), (II), (K), (M), and (N), respccti~-cly;
6 (C) by inserting after subparagraph (D)
7 the follo«~ing• new suhparagraph:
8 "(E) a representative of the Corps of Engi-
9 veers of the United States Army;";
10 (D) by inserting after subparagraph (H)
11 (as so redesignated by subparagraph (B) of this
12 paragraph) the following• new subparagraphs:
13 "(I) a representative of local or regional
14 flood and stormwater agencies;
15 "(J) a representative of State geographic
16 information coordinators;"; and
17 (E) by inserting after subparagraph (K)
18 (as so redesignated by subparagraph (A) of this
19 paragraph) the following new stiibparagraph:
20 "(L) a representative of flood insurance
21 servicing companies;"
22 (<3) TERMS OF DIEMBERS AND APPOINTPIENT.
23 Section 576(b) of the National Flood Insurance Pe-
24 form ~~et of 1994 (42 U.S.C. 4101 note) is amended
25 by adding at the end the following new paragraph:
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48
"(3) TERMS OF MEMBERS.-
"(A) IN GENERAL.-Each member of the
Council pursuant to any of subparagraphs (B)
through (N) of paragraph (1) shall be ap-
pointed for a term of 5 ,years, except as pro-
vided in subparagraphs (B) and (C).
"(B~ TERMS OF INITIAL APPOINTEES.-As
designated by the Director (or the designee of
the Director) at the time of appointment, of the
members of the Council first appointed pursu-
ant to subparagraph (D)-
"(i) 4 shall be appointed for a term of
1 year;
"(ii) 4 shall be appointed for a term
of 3 years; and
"(iii) 5 shall be appointed for a term
of 5 years.
"(C) VACANCIES. Any member of the
Council appointed to fill a vacancy occurrinb
before the expiration of the term for which the
member's predecessor was appointed shall be
appointed only for the r•emainder• of that term.
A member may serve after the expiration of
that member's term until a successor has taken
office. A vacancy in the Council shall be filled
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49
in the manner in which the original appoint-
ment was made.
"(D) INITIAL APPOINTNIENT.-The Direc-
tor, or the Director's designee, shall take action
as soon as possible after the date of the enact-
ment of the Flood Insurance Reform and Mod-
ernization Act of 2007 to appoint the members
of the Council pursuant to this subsection.".
(4) DUTIES.-Subsection (c) of section 576 of
the National Flood Insurance Reform Act of 1994
(42 U.S.C. 4101 note) is amended to read as fol-
lows:
"(c) DUTIES.-The Council shall-
"(1) make recommendations to the Director for
improvements to the flood map modcrniza,tion pro-
gram under section 1360(k) of the National Flood
Insurance Act of 1968 (42 U.S.C. 41010(k));
"(2) make recommendations to the Director for
maintaining a modernized inventory of flood hazard
maps and information; and
"(3) submit an annual report to the Director
that contains a description of the activities and rec-
ommendations of the Council.".
(5) ELIMINATION OF TERMINATION.-Section
576 of the National Flood Insurance Reform Act of
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1 1994 (42 U.S.C. 4101 note) is amended by striking
2 subsection (k) and inserting t1~e following new sub-
3 section:
4 "(k) CONTINUED EXISTENCE.-Section 14(a)(2)(B)
5 of the Federal Advisory Committee Act (5 U.S.C. App.;
6 relating to termination of advisory committees) shall not
7 apply to the Council.".
8 (C~ POST-DISASTER FLOOD ELEVATION DETERMINA-
9 TIONS.-Section 1360 of the National Flood Insurance
10 Act of 1968 (42 U.S.C. 4101), as amended by the pre-
11 ceding provisions of this Act, is further amended by add-
12 ing at the end the following new subsection:
13 "(1) INTERIM POS-DISASTER FLOOD ELE-
14 VATIONS.-
15 "(1) AUTHORITY.-Notwithstanding any other
16 provision of this section or section 1363, the Direc-
17 for may, after any flood-related disaster, establish by
18 order interim flood elevation requirements for pur-
19 poses of the national flood insurance program for
20 any areas affected by such flood-related disaster.
21 "(2) EFFECTIVENESS.-Such interim elevation
22 requirements for such an area shall take effect im-
23 mediately upon issuance and may remain in effect
24 until the Director establishes new flood elevations
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51.
1 for such area in accordance with section 1363 or the
2 Director provides otherwise.".
3 SEC. 23. NOTIFICATION AND APPEAL OF MAP CHANGES;
4 NOTIFICATION OF ESTABLISHMENT OF
$ FLOOD ELEVATIONS.
6 Section 1363 of the Natiarial Flood Insurance Act of
7 1968 (42 U.S.C. 4104) is amended by str•iking• the section
8 designation and all that follows through the end of sub-
9 section (a) and inserting the follo«~ing~:
10 "SEC. 1363. (a) In establishing projected flood ele-
11 vations for land use purposes with respect to any commu-
12 nity pursuant to section 1361, the Director shall first pro-
13 pose such determinations-
14 "(1) by pro~-iding the chief executive officer of
15 each community affected by the pr•oposcd clcva,ticnrs,
16 by certified mail, with a return receipt r•equcstcd,
17 notice of the elevations, including a copy of the maps
18 for the elevations for such community and a statc-
19 ment explaining the process under this section to ap-
20 peal for changes in such elevations;
21 "(2) by causing notice of such elevations to be
22 published in the Federal Register, which notice shall
23 include information sufficient to identify the ele-
24 vation determinations and the communities affected,
25 information explaining how to obtain copies of the
•HR 3121 IH
52
1 elevations, and a statement explaining the process
2 under this section to appeal for chanties in the ele-
3 va,tions; and
4 "(3) by publishing in a prominent local news-
5 paper the elevations, a description of the appeals
6 process for flood determinations, and the mailing ad-
z dress and telephone number of a person the owner
8 may contact for• more information or to initiate an
9 appeal.".
lO SEC. 24. CLARIFICATION OF REPLACEMENT COST PROVI-
11 SIONS, FORMS, AND POLICY LANGUAGE.
12 Not later than the expiration of the 3-month period
13 beginning on the date of the enactment of tlris Act, the
14 Director of the Federal Emergency Management Agency
15 shall-
16 (1) in plain language using easy to understand
17 terms and concepts, issue regulations, and revise any
18 materials made available by such Agency, to clarify
19 the applicability of replacement cost coverage under
20 the national flood insurance program;
21 (2) in plain language using easy to understand
22 terms and concepts, revise any rebulations, forms,
23 notices, guidance, and publications relating to the
24 full cost of repair or replacement under the replace-
25 ment cost coverage to more clearly describe such
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53
1 coverage to flood insurance policyholders and infor-
2 oration to be provided by such policyholders relating
3 to such coverage, and to avoid providing rnislca~ding
4 information to such policyholders;
5 (3) revise the language in standard flood institr-
6 ante policies under such program regarding rating
7 and coverage descriptions in a manner that is con-
8 sistent with language used widely in other home-
9 owners and property and casualty insurance policies,
10 including such language regarding classification of
11 buildings, basements, crawl spaces, detached ga-
12 rages, enclosures below elevated buildings, and re-
13 placement costs; and
14 (4) include in each standard flood insurance
15 policy a one-pa,gc description of the policy using
16 plain language and easy to understand terms and
17 concepts.
18 SEC. 25. AUTHORIZATION OF ADDITIONAL FEMA STAFF.
19 Notwithstanding any other provision of law, the Di-
20 rector of the Federal Emergency Management Agency
21 may employ such additional staff as may be necessary to
22 carry out all of the responsibilities of the Director pursu-
23 ant to this Act and the amendments made by this Act.
24 There are authorized to be appropriated to Director such
•HR 3121 IH
54
1 sums as may be necessary for costs of emploS~ing such ad-
2 ditional staff.
3 SEC. 26. EXTENSION OF DEADLINE FOR FILING PROOF OF
4 Loss.
5 (a) IN GENERAL-Section 1312 of the National
6 Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend-
7 ed-
8 (1) by inserting• "(a) PAYMENT.-" before "The
9 Director"; and
10 (2) by adding at the end the following new sub-
11 section:
12 "(b) FILING DEADLINE FOR PROOF OF LOSS.-
13 "(1) IN GENERAL.-In establishing any require-
14 menu regarding notification, proof, or approval of
15 claims for da,ma,gc to or loss of property which is
16 co~-crcd by food insurance ma,dc available under this
17 title, the Director may not require an insured to no-
18 tify the Director of such damage or loss, submit a
19 claim for such damage or loss, or certify to or sub-
20 nut proof of such damage or loss, before the expira-
21 tion of the 180-day period that begins on the date
22 that such damage or loss occurred.
23 "(2) EXCEPTIONS.-Notwithstanding any dead-
24 line established in accordance with paragraph (1),
25 the Director may not deny a claim for damage or
•HR 3121 IH
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1 loss described in such paragraph solely for failure to
2 meet such deadline if the insured demonstrates any
3 good cause for such failure.".
4 (b) APPLICABILITY.-Subsection (b) of section 1312
5 of the National Flood Insurance Act of 1968, as added
6 by subsection (a)(2) of this section, shall apply «~ith re-
7 sped to any claim under which the damage to or loss of
8 property occurred on or after the date of the enactment
9 of this Act.
10 SEC. 27.5-YEAR, EXTENSION OF PROGRAM.
11 Section 1319 of the National Flood Insurance Act of
12 1968 (42 U.S.C. 4026) is amended by striking "Sep-
13 tember 30, 2008" and inserting "September 30, 2013".
O
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