HomeMy WebLinkAbout09 LEGISLATIVE UPDATES - REPORT 07-15-08AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: CITY CLERK'S OFFICE SUBJECT: LEGISLATIVE REPORTS SUMMARY: Staff has prepared five (5) agenda reports that discuss the following legislative items: • SB303 (Ducheny) -Local government: land use planning. Existing law requires designated transportation planning agencies to prepare and adopt a regional transportation plan that includes a policy element, an action element, and a financial element. The plan is required to be directed at achieving a coordinated and balanced Regional Transportation Plan (RTP). Senate Bill (SB) 303 would require a transportation planning agency with a population exceeding 200,000 persons to: (a) prepare an initial planning scenario and an alternative planning scenario, (b) adopt and publish procedures governing the preparation and adoption of the initial planning scenario and the alternative planning scenario, and (c) submit, at least 90 days prior to circulation of the draft regional transportation plan, the initial planning scenario and the alternative planning scenario and accompanying report to the State Air Resources Board. SB 303 also includes revisions to the Housing Element Law by requiring cities to rezone properties within certain time period. Staff recommends that the City Council take a position to oppose SB 303 and direct staff to transmit the attached letter of opposition to Senator Ducheny. • AB2112 (Saldana and Lieu) -Energy: building standards. State Assembly Bill 2112 would authorize the California Energy Commission (CEC) to adopt building standards requiring that all new residential construction be "zero net energy buildings" by 2020. Staff recommends that the City Council oppose AB2112 and authorize staff to transmit the attached letter to the author and local legislators. • HR3121 (Congresswoman Maxine Waters (D-CA)) -Mandated flood Insurance. If approved, proposed House of Representatives (H.R.) 3121 would authorize the National Flood Insurance Program (NFIP) of the Federal Emergency Page 2 Management Agency (FEMA) to enter into and renew flood insurance policies through 2013. The changes proposed would extend the mandatory purchase of flood insurance, where it is not currently required, affecting an unknown number of 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. On June 3, 2008, the Tustin City Council directed staff to transmit the attached letter of opposition to H.R. 3121. On July 1, 2008, the City Council requested staff to provide an update on the status of the bill. Staff recommends -Pleasure of the City Council. • US Senate Bill 1499 (S. 1499), Marine Vessel Emissions Reduction Act. S. 1499 would require tougher pollution controls for ocean-going and container ships. S. 1499 and its companion bill, United States House of Representatives Bill 2548 (H.R. 2548), would require the U.S. Environmental Protection Agency to reduce the sulfur content of fuel used by domestic and foreign ocean-going ships calling at all U.S. ports and set standards requiring the maximum degree of emission reductions achievable in new and existing engines for all domestic and foreign ocean-going ships calling on U.S. ports. Staff recommends that the City Council take a position to support S. 1499 and direct staff to transmit the attached letter of support to Senator Barbara Boxer. • AB844 (Berryhill and Maze) -Junk dealers and recyclers: nonferrous material. AB844 is proposed to amend prior law related to California Junk Dealers. The Bill is considered emergency legislation that addresses the rising state and national problem concerning theft of certain nonferrous materials. Staff recommends -Pleasure of the Council. As requested, staff will continue to monitor A6387 (Duvall) -Design build contracts for transit projects and return to Council when position is required. Additionally, Council may request staff to prepare informational reports, and/or letters of support/opposition on legislative matters that are time-sensitive and were not agendized. Maria R. Huizar Chief Deputy City Clerk SB303 (Ducheny) Local government: land use planning TUSTIN BUILDING OUR FUTURE HONORING OUR PAST AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: LEGISLATIVE REPORT -SENATE BILL 303 SUMMARY: Existing law requires designated transportation planning agencies to prepare and adopt a regional transportation plan that includes a policy element, an action element, and a financial element. The plan is required to be directed at achieving a coordinated and balanced Regional Transportation Plan (RTP). Senate Bill (SB) 303 would require a transportation planning agency with a population exceeding 200,000 persons to: (a) prepare an initial planning scenario and an alternative planning scenario, (b) adopt and publish procedures governing the preparation and adoption of the initial planning scenario and the alternative planning scenario, and (c) submit, at least 90 days prior to circulation of the draft regional transportation plan, the initial planning scenario and the alternative planning scenario and accompanying report to the State Air Resources Board. SB 303 also includes revisions to the Housing Element Law by requiring cities to rezone properties within certain time period. A copy of the bill is included as Attachment A to this report. RECOMMENDATION: That the City Council take a position to oppose SB 303 and direct staff to transmit the attached letter of opposition to Senator Ducheny. FISCAL IMPACT: If SB 303 is adopted, local jurisdictions that are not in compliance with the adopted sustainable communities strategy will not be eligible for federal and state funding for regional transportation projects. This fiscal impact would be significant. DISCUSSION: Impact on the Regional Transportation Plan Existing law requires designated transportation planning agencies to prepare and adopt a regional transportation plan that includes a policy element, an action element, and a City Council Report SB 303 July 15, 2008 Page 2 financial element. The plan is required to be directed at achieving a coordinated and balanced regional transportation plan. Under the existing law, each transportation agency with a population that exceeds 200,000 persons is authorized to prepare at least one alternative planning scenario. However, SB 303 would mandate a transportation planning agency with a population exceeding 200,000 persons to: (a) prepare an initial planning scenario and an alternative planning scenario, (b) adopt and publish procedures governing the preparation and adoption of the initial planning scenario and the alternative planning scenario, and (c) submit, at least 90 days prior to circulation of the draft regional transportation plan, the initial planning scenario and the alternative planning scenario along with accompanying report to the State Air Resources Board. These additional duties would impose astate-mandated local program. The required initial and alternative planning scenarios necessitate the following: • Project land use and development pattern that includes land use designations, densities, and building intensities. • Identify areas sufficient to house the regional housing needs (RHNA). • Consider the region's long term housing need. (defined as "...begins 9 years after and concludes 17 years after the first year of the effective date of regional transportation plan..."). • Establish a regional greenhouse gas (GHG) emission target by projecting the land use transportation carbon footprint associated with the implementation of RTP. • Option to designate the approximate boundaries of potential Transportation Infill Areas (TIA). A city or county would be authorized to create one or more Transportation Infill Areas (TIA). The State Air Resources Board (ARB) would be required to hold a public hearing and issue a written report determining whether either the initial planning scenario or the alternative planning scenario will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006. If a proposed project is consistent with the designation, density, and building intensity specified in the planning scenario for RTP, the project will not be required to reference, describe, or discuss potential project specific or cumulative growth inducing effects related to greenhouse gas emission or climate change. Impact on the Housing Element Law Existing law requires a city or county general plan to include specified mandatory elements, including a housing element that analyzes existing and projected housing needs and includes a statement of goals, quantified objectives, policies, financial resources, and scheduled programs for the maintenance, preservation, improvement, and development of housing. The housing element is required to identify the existing and projected housing needs of all economic segments of the community (RHNA). City Council Report SB 303 July 15, 2008 Page 3 The Department of Housing and Community Development is required to calculate the existing and projected regional housing need. The council of governments, or delegate subregion, as applicable, is required to distribute the proposed final allocation of regional planning needs to each local government in the region or subregion, as applicable, based on specified methodology. Under the existing law, local government is required to review its housing element as frequently as appropriate and to revise the housing element, as appropriate but not less than every 5 years, to reflect the periodic review. SB 303 would revise the time period for the 4th and subsequent revisions of the housing element of each local government within a regional transportation planning agency or a local transportation commission to not less than every 8 years to coincide with the time period of the Regional Transportation Plan. SB 303 also mandates the following: • Identify actions that will be taken to make sites available no later than the end of fourth year of the planning period for the general plan with appropriate zoning and development standards and with services and facilities to accommodate RHNA. • All rezoning to accommodate RHNA be completed and in effect no later than three (3) years after the due date for adopting final housing element (by June 30, 2011 for SCAG region). • No later than three (3) months before the end of the fourth year of the planning period (by March 30, 2014, for the SCAG region), cities shall conduct a public hearing reporting whether rezoning has been completed in accordance with the law and provide written findings accordingly. Concerns with SB 303 The language proposed in SB 303 is of concern for the following reasons: • SB 303 conflated RTP, Housing Element, and GHG emission and Climate Change processes and requirements. The bill loads too much of the process for developing a regional planning scenario within the RTP, thus creating convoluted local mandate programs and updates that cities are responsible to implement. • RTPs and Blueprints are two distinct documents. RTPs are conduits for federal transportation funding, not overarching planning documents that try to resolve the regions' other planning related issues i.e. housing needs, CEQA, local land use authority, etc. Blueprints (mostly included within SB 375 and partially proposed within SB 303) should forecast realistic development and should be endorsed by local government before being incorporated into the RTP. City Council Report SB 303 July 15, 2008 Page 4 • Blueprints can identify a growth pattern fora region, but individual local government must retain full discretion over local land use decisions. • The bill requires cities to rezone properties within three (3) years. This three years requirement is not realistic and imposes burdens on local government especially during the uncertainty of local housing market. In addition, without proper legal protection, cities cannot impose zone changes involving multiple property owners without proper due process. • The bill does not include a funding source for either planning or funding the infill infrastructure that will be necessary to facilitate the type of infill necessary to reduce GHG emissions. The bill also does not include necessary funding for necessary infrastructure improvements to accommodate increase density, intensity, and capacity as suggested by the Bill. • The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. For the above reasons, staff recommends that the City of Tustin opposes SB 303. Justina Willkom Senior Planner Elizabeth A. Binsack Community Development Director Attachments: A: SB 303 B: Draft Letter of Opposition S:\Cdd\CCREPORT\SB 303.doc ATTACHMENT A Senate Bill (SB) 303 AMENDED IN ASSEMBLY JULY 1, 2008 AMENDED IN ASSEMBLY JUNE 9, 2008 AMENDED IN ASSEMBLY JUNE 25, 2007 AMENDED IN SENATE MAY 2, 2007 AMENDED IN SENATE APRIL 18, 2007 AMENDED IN SENATE APRIL 10, 2007 AMENDED IN SENATE MARCH 22, 2007 SENATE BILL Introduced by Senator Ducheny February 16, 2007 No. 303 An act to amend Sections-fr58$~; 65080.3, 65583, 65584, 65584.01, and~~~ 65588 of, and to add Sections 65080.4 and 65080.6 to, the Government Code, relating to land use planning. LEGISLATIVE COUNSEL'S DIGEST SB 303, as amended, Ducheny. Local government: land use planning. (1) Existing law requires designated transportation planning agencies to prepare and adopt a regional transportation plan that includes a policy element, an action element, and a financial element. The plan is required to be directed at achieving a coordinated and balanced regional transportation plan. Each transportation agency with a population that exceeds 200,000 persons is authorized to prepare at least one alternative planning scenario, as specified. This bill would require a transportation planning agency with a population exceeding 200,000 persons 92 SB 303 - 2 - (A) to prepare an initial planning scenario, as specked, and an alternative planning scenario, as specked, (B) to adopt and publish procedures governing the preparation and adoption of the~eg-ienal ~ransper-ta~ien-plan initial planning scenario and the alternative planning scenario, as specified, ~ , as-spee~fied; and (C) to submit, at least 90 days prior to circulation of the draft regional transportation plan, the initial planning scenario and the alternative planning scenario and accompanying report to the State Air Resources Board, as specified. These additional duties would impose a state-mandated local program. The State Air Resources Board would be required to hold a public hearing and issue a written report determining whether either the initial planning scenario or the alternative planning scenario will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006. A city or county would be authorized to create one or more transportation infill areas, as specified. (2) Existing law requires a city or county general plan to include specified mandatory elements, including a housing element that analyzes existing and projected housing needs and includes a statement of goals, quantified objectives, policies, financial resources, and scheduled programs for the maintenance, preservation, improvement, and development of housing. The housing element is required to identify the existing and projected housing needs of all economic segments of the community. The Department of Housing and Community Development is required to calculate the existing and projected regional housing need, as specified. The council of governments, or delegate subregion, as applicable, is required to. distribute the proposed final allocation of regional planning needs to each local government in the region or subregion, as applicable, based on specified methodology.~t Each local government is required to review its housing element as frequently as appropriate and to revise the housing element, as appropriate but not less than every S years, to reflect the periodic review. This bill would revise the time period for the statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing. The timeframe for calculating and distributing th~k 4th and subsequent revisions of the housing element would be revised, as 92 - 3 - SB 303 specified. Each local government within a regional transportation planning agency or a local transportation commission instead would be required to revise the housing element, as appropriate but not less than every 8 years, to reflect the adoption of the regional transportation plan. Every other local government would be required to revise the housing element not less than every 10 years to reflect the adoption of the regional transportation plan. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: n-rrni.r ~ ° 3 vcn o v v ~ -~ a - 1 mi 2 « . .~.~.~ 4.~ .. ... c~t ei~ ~: ~v o - ~ ven Y3 i O e 3 4 5 ~ 6 , , 7 8 , 9 ' 0 , 1 1 , 1 2 1 13 14 1 , 5 16 17 , 18 €el}e 19 ~ing: 20 21 , 92 SB 303 1 r ..:~ ,. ,.~~ ........:.. .. ~....,., ~ , ,~«~..i.,. i,:,.~.._~. 2 iuuiu~.vuu~y 3 , 4 , 5 6 7 8 , 9 10 11 ' 12 13 14 15 16 1 . 7 8 1 19 , 20 21 22 ' 23 24 , , , 25 26 2 7 28 , 29 30 €a~la~i~r gs ' , 31 2 , , 3 33 , 34 ' 35 , 36 ~ 37 ~ , ' 38 , , 39 40 92 5 - SB 303 1 . 2 3 4 ~ 5 , , 6 , 7 8 , 9 0 , ' 1 , , 11 12 . 13 14 , 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 , ~n ~ R l -- l ll k ~ - ~e~c~r~ tx~e r ~e e~en~ ia ~ sa ~e s , , , , 92 SB 303 -6- 1 2 , 3 4 ' ' , , ~ ~ 5 , , , 6 7 8 9 10 11 12 3 ' ' 1 , ' , 14 , , 15 6 1 17 ' , 18 , , 19 20 21 22 23 24 , 25 26 27 28 , 29 30 31 , 32 , 33 , 34 35 36 , , 37 ' 38 , , 39 , 40 , , 92 - 7 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 ,.,. ..~: ~~~ SECTION 1. Section 65080.3 of the Government Code is amended to read: 65080.3. (a) Each transportation planning agency with a population that exceeds 200, 000 persons shall prepare an initial 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -8 planning scenario. For areas that have a county transportation commission created pursuant to Section 130050 of the Public Utilities Code, the county transportation commission for each county shall prepare the initial planning scenario for its area or otherwise contract with the multicounty designated transportation planning agency, as defined in Section 130004 of the Public Utilities Code, to prepare the initial planning scenario for its area. The initial planning scenario shall do all of the following: (1) Project a land use and development pattern that includes land use designations, densities, and building intensities for the area covered by the regional transportation plan based on existing general plan policies and recent and current growth patterns. (2) Identify areas within the region sufficient to house the regional housing need determined pursuant to Section 65584.01 in accordance with the final allocation plan adopted pursuant to Section 65584.04. (3) Take into consideration the region 's long-term housing need. (4) Establish a regional greenhouse gas emissions target by projecting the land use-transportation carbon footprint associated with implementation of the regional transportation plan. The land-use transportation carbon footprint shall be based on planning assumptions used for determining conformity pursuant to federal law (b) The initial planning scenario may designate the approximate boundaries of potential transportation infill areas (TIAs) within the region, pursuant to Section 65080.5, that could be developed at significantly higher densities to increase the efficiency of the transportation network. (c) Each transportation agency with a population that exceeds 200,000 persons shall prepare an "alternative planning scenario" that results in a projected land use transportation carbon footprint, as defined in Section 65080, that is less than that associated with the initial planning , scenario. For areas that have a county transportation commission created pursuant to Section 130050 of the Public Utilities Code, the county transportation commission for each county shall prepare the alternative planning scenario for its area or otherwise contract 92 - 9 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 with the multicounty designated transportation planning agency, as defined in Section 130004 of the Public Utilities Code, to prepare the alternative plarming scenario for its area. (d) The alternative planning scenario shall do all of the following: (1) Project a land use and development pattern that includes land use designations, densities, and building intensities for the area covered by the regional transportation plan, after considering a range of growth patterns with different emphases, including accommodating growth in master planned communities, accommodating growth in exurban areas outside existing urban centers, accommodating growth in suburban areas near urban areas, and accommodating growth in urban areas. (2) Ident~ areas within the region sufficient to house the regional housing need determined pursuant to Section 65584.01 in accordance with the goal of reducing the region's land use-transportation carbon footprint. (3) Take into consideration the region 's long-term housing need. (4) Rely on, and accommodate, the same planning projections and assumptions as the initial planning scenario, including projected population and job growth. (e) The alternative planning scenario shall be developed in collaboration with a broad range of public and private stakeholders, including local elected officials, city and county employees, relevant interest groups, and the general public. In developing the scenario, the agency shall consider all of the following: (1) Increasing housing and commercial development around transit facilities and in close proximity to jobs and commercial activity centers. (2) Encouraging public transit usage, ridesharing, walking, bicycling, and transportation demand management practices. (3) Promoting a more efficient mix of current and future job sites, commercial activity centers, and housing opportunities. 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 10 - (4) Promoting use of urban vacant land and "brownfield" redevelopment. (5) An economic incentive program that may include measures such: as transit vouchers and variable pricing for transportation. (6) The general plans of the cities and counties within the region, spheres of influence for each city, and the most recent municipal service reviews completed by the local agency formation commissions within the planning area. (7) The alternative planning scenario may designate the approximate boundaries of potential transportation infill areas (TIAs) within the region, pursuant to Section 65080.5, that could be developed at significantly higher densities to increase the efficiency of the transportation network. (~ The alternative planning scenario shall be included in a report evaluating all of the following: (1) The amounts and locations of traffic congestion. (2) Vehicle miles traveled and the resulting reduction in vehicle emissions. (3) Estimated percentage share of trips made by each means of travel specified in subparagraph (C) of paragrapher (1) of subdivision (b) of Section 65080. (4) The costs of transportation improvements required to accommodate the .population growth in accordance with the alternative planning scenario and sources of funds for the required improvements. (5) The economic, social, environmental, regulatory, and institutional barriers to the scenario being achieved. (6) The capacity, or lack thereof, of existing infrastructure for water supply, wastewater transport and treatment, solid waste disposal, and other utilities to accommodate any increased densities envisioned under the alternative planning scenario, and increases, upgrades, or retrofit actions necessary to establish sufficient capacity for the envisioned uses. (7) Quantification of the reduction in the land use transportation carbon footprint forecasted to be achieved by the alternative planning scenario as compared to the initial planning scenario. (g) The transportation planning agency, after notice and the opportunity for the public to provide written and oral comments, shall adopt and publish procedures governing the preparation and 92 ll - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 adoption of the initial planning scenario and the alternative planning scenario. The procedures shall include, at a minimum, all of the following: (1) Outreach efforts to ensure the active participation of a broad range of stakeholder groups in the planning process, including, but not limited to, affordable housing advocates, transportation advocates, neighborhood and community groups, environmental advocates, home builder representatives, broad-based business organizations, landowners, commercial property interests, and homeowners associations. (2) Workshops throughout the region to provide the public with the information and tools necessary to provide a clear understanding of the issues and policy choices, including prioritizing transportation funding in a manner that limits opportunities for single family home development and ownership and individual automobile use in an attempt to address global climate change through altering the region's transportation and land use policy. At least three workshops shall be held in each county within the region. Each workshop shall include urban simulation computer modeling to create visual representations of the initial planning scenario and the alternative planning scenario. (3) Preparation and circulation of a draft initial planning scenario and alternative planning scenario not less than 90 days before adoption of a final plan. (4) At least three public hearings on the draft initial planning scenario and alternative planning scenario. To the maximum extent feasible, the hearings shall be in different parts of the region to maximize the opportunity for participation by members of the public throughout the region. (S) A process for enabling members of the public to provide a single request to receive notices, information, and updates. (h) (1) At least 90 days prior to circulation of the draft regional transportation plan, the transportation agency shall submit the initial planning scenario and the alternative planning scenario and accompanying report to the State Air Resources Board. The board shall hold a public hearing and issue a written report determining whether each scenario will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006 (Part 1 (commencing with Section 38500) of Division 25.5 of the Health 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 12 - and Safety Code). The board's determination shall be supported by substantial evidence in the record. The board is not authorized to make land use determinations, zoning determinations, determine building intensities, or other determinations that are the prerogative of local governments. The board shall transmit its written report to the transportation agency within 60 days of receiving the scenarios from the transportation agency. (2) If the State Air Resources Board's report determines that neither the initial planning scenario nor the alternative planning scenario will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006 (Part 1 (commencing with Section 38500) of Division 25.5 of the Health and Safety Code), the transportation agency may adopt either one as the planning scenario for the regional transportation plan. (3) If the State Air Resources Board's report determines that{-ij (A) the initial planning scenario will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006 (Part 1 (commencing with Section 38500) of Division 25.5 of the Health and Safety Code), ands (B) that the alternative planning scenario will not inhibit the state from achieving its goals under that act, the alternative planning scenario and accompanying report shall be adopted as the planning scenario for the regional transportation plan. (4) If the State Air Resources Board's report determines that both scenarios will inhibit the state from achieving its goals under the California Global Warming Solutions Act of 2006 (Part 1 (commencing with Section 38500) of Division 25.5 of the Health and Safety Code), the report shall include proposed modifications to the alternative planning scenario that would result in the alternative planning scenario not inhibiting the state's goals under that act. The board shall not make land use determinations, zoning determinations, or building intensity determinations. The transportation agency shall adopt the alternative planning scenario with the modifications as the planning scenario for the regional transportation plan unless it determines, based on substantial evidence in the record, that~r) (A) the proposed modifications would prevent the region from meeting its medium- or long-term housing need, or-(ii-) (B) the proposed modifications render the alternative planning scenario inconsistent with any applicable federal requirements for land use and development scenarios. If 92 13 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 the transportation agency makes either of these determinations, it shall adopt the alternative planning scenario without the modifications as the planning scenario for the regional transportation plan. (i) Nothing in this section grants transportation planning agencies any direct or indirect authority over local land use decisions. (j) The provisions of this chapter shall be the exclusive compliance mechanism for the land use sector sources in each region for purposes of the California Global Warming Solutions Act of 2006 (Part 1 (commencing with Section 38500) of Division 25.5 of the Health and Safety Code), and no additional requirements shall be required pursuant to that act regulating the location, distribution, or type of land uses, or the generation of vehicle miles traveled by motor vehicles associated with such land uses. Nothing in this subdivision shall prohibit the issuance of energy efficiency requirements for existing or new development related to energy use within the development nor shall it affect the ability of any agency to regulate the greenhouse gas or air contaminant emissions rate of any vehicles or transportation facilities. (k) Nothing in this chapter shall be interpreted to authorize the abrogation of any vested right whether created statutorily or by common law. (l) The provisions of this section shall not apply to all of the following: (1) Any project programmed for funding on or before December 31, 2011, that is (A) contained in the 2007 or 2009 Federal Statewide Transportation Improvement Program, or (B) funded pursuant to Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2. (2) Any project identified in a ballot measure imposing a sales tax for transportation projects that is approved by the voters on or before November 4, 2008. 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -14- (m) Where a ballot measure imposing a sales tax for transportation projects approved on or before November 4, 2008, includes or references a transportation expenditure plan that allocates funds based on the programmatic nature of the expenditure (categorical expenditures), nothing in this bill shall be interpreted to require or authorize the reallocation of funds to a different category, or any other action that would require voter approval. The governing agency, however, shall establish criteria that gives priority for funds within a category to projects that are consistent with the adopted planning scenario for the regional transportation plan. (n) Nothing in this section shall be interpreted, either by its own terms or in combination with any other provision of law, as requiring a city's or county's land use policies and regulations, including its general plan, to be consistent with the regional transportation plan or the planning scenario adopted as part of the regional transportation plan. (o) Nothing in this section shall apply to any project for which an application has been deemed complete by any jurisdictional local lead agency or for which a notice of preparation has been issued pursuant to subdivision (a) of Section 21080.4 of the Public Resources Code and subdivision (a) of Section 15082 of Title 24 of the California Code of Regulations, prior to the adoption of the first regional transportation plan prepared in compliance with this section, by the .transportation agency for the region in which the project is located. (p) For purposes of this chapter, the following terms have the following meanings: (1) "Land use-transportation carbon footprint " means the region 's per capita or per household carbon emissions calculated using a methodology that measures the carbon equivalent of greenhouse gas emissions from personal and freight transportation and residential energy use and direct fuel consumption. (2) "Long-term housing need" means a projection of the region 's housing need for the period that begins nine years after and concludes 17 years after the first year of the effective date of the regional transportation plan. This projection shall be made by the Department ofHousing and Community Development based 92 -15 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 upon the regional population forecasts used in preparing regional transportation plans. (3) The provisions in Section 65583.2 shall be used to determine site capacity and accommodation of lower income households. ~~ SEC. 2. Section 65080.4 is added to the Government Code, to read: 65080.4. If a project is consistent with the designation, density, and building intensity specified for the area in the planning scenario for the regional transportation plan, any environmental review for the project, including, without limitation, findings or other determinations for an exemption, a negative declaration, a mitigated negative declaration, an environmental impact report, findings, a mitigation monitoring and reporting program, or other document under Division 13 (commencing with Section 21000) of the Public Resources Code, shall not be required to reference, describe, or discuss potential project specific or cumulative growth inducing effects, alternatives, or effects related to greenhouse gas emissions or climate change. In addition, the geographic scope for referencing, describing, or discussing any potentially cumulative effects not prohibited by this section from being referenced, described, or discussed shall not extend beyond the territorial limits of the city or county in which the project is located. ~-~4. SEC. 3. Section 65080.6 is added to the Government Code, to read: 65080.6. (a) A city or county may create one or more transportation infill areas-{~Aj (TIAs) in areas designated as potential transportation infill areas in the regional transportation plan. (b) A TIA shall include all of the following: (1) A reasonable description of the specific boundaries of the TIA within the jurisdiction. (2) Zoning that plans for the construction of at least 500 new dwelling units in addition to commercial, retail, office, or other uses that are compatible with residential development located within a transit corridor. (3) Minimum zoning and density standards that establish average residential densities of at least 30 units per acre in residential areas and an average floor area ratio of 2.0 in commercial areas. 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -16- (c) The following provisions shall apply within TIAs: (1) The provisions of Section 65915 do not apply. (2) If a project is consistent with the designation, density, and building intensity specified for the area in the planning scenario for the regional transportation plan, any environmental review for the project, including, without limitation, findings or other determinations for an exemption, a negative declaration, a mitigated negative declaration, an environmental impact report, findings, a mitigation monitoring and reporting program, or other document under Division 13 (commencing with Section 21000) of the Public Resources Code, shall not be required to reference, describe, or discuss potential project specific or cumulative growth inducing effects, alternatives, or effects related to greenhouse gas emissions or climate change. In addition, the geographic scope for referencing, describing, or discussing any potentially cumulative effects not prohibited by this section from being referenced, described, or discussed shall not extend beyond the territorial limits of the city or county in which the project is located. ~5: SEC. 4. Section 65583 of the Government Code is amended to read: 65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following: (a) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following: (1) An analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected housing needs for all income levels, including extremely low income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health and Safety Code. These existing and projected needs shall include 92 - 17 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 the locality's share of the regional housing need in accordance with Section 65584. Local agencies shall calculate the subset of very low income households allotted under Section 65584 that qualify as extremely low income households. The local agency may either use available census data to calculate the percentage of very low income households that qualify as extremely low income households or presume that 50 percent of the very low income households qualify as extremely low income households. The number of extremely low income households and very low income households shall equal the jurisdiction's allocation of very low income households pursuant to Section 65584. (2) An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (3) An inventory of land suitable for residential. development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. (4) (A) The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zones where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following: 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -18- (i) The maximum number of beds or persons permitted to be served nightly by the facility. (ii) Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone. (iii) The size and location of exterior and interior onsite waiting and client intake areas. (iv) The provision of onsite management. (v) The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. (vi) The length of stay. (vii) Lighting. (viii) Security during hours that the emergency shelter is in operation. (B) The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (C) A local government that can demonstrate to the satisfaction of the department the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdiction's need for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zone or zones where new emergency shelters are allowed with a conditional use permit. (D) A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zones for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph. (5) An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (6), including land use controls, building codes and their enforcement, site 92 -19 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (6). Transitional housing and supportive housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. (6) An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. (7) An analysis of any special housing needs, such as those of the elderly, persons with disabilities, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on annual and seasonal need. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. (8) An analysis of opportunities for energy conservation with respect to residential development. (9) An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. "Assisted housing developments," for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. "Assisted housing developments" shall also include multifamily rental units that were developed pursuant to a local inclusionary housing 92 SB 303 - 20 - 1 program or used to qualify for a density bonus pursuant to Section 2 65916. 3 (A) The analysis shall include a listing of each development by 4 project name and address, the type of governmental assistance 5 received, the earliest possible date of change from low-income use 6 and the total number of elderly and nonelderly units that could be 7 lost from the locality's low-income housing stock in each year 8 during the 10-year period. For purposes of state and federally 9 funded projects, the analysis required by this subparagraph need 10 only contain information available on a statewide basis. 11 (B) The analysis shall estimate the total cost of producing new 12 rental housing that is comparable in size and rent levels, to replace 13 the units that could change from low-income use, and an estimated 14 cost of preserving the assisted housing developments. This cost 15 analysis for replacement housing may be done aggregately for 16 each five-year period and does not have to contain a 17 project-by-project cost estimate. 18 (C) The analysis shall identify public and private nonprofit 19 corporations known to the local government which have legal and 20 managerial capacity to acquire and manage these housing 21 developments. 22 (D) The analysis shall identify and consider the use of all federal, 23 state, and local financing and subsidy programs which can be used 24 to preserve, for lower income households, the assisted housing 25 developments; identified in this paragraph, including, but not 26 limited to, federal Community Development Block Grant Program 27 funds, tax increment funds received by a redevelopment agency 28 of the community, and administrative fees received by a housing 29 authority operating within the community. In considering the use 30 of these financing and subsidy programs, the analysis shall identify 31 the amounts of funds under each available program which have 32 not been legally obligated for other purposes and which could be 33 available for use in preserving assisted housing developments. 34 (b) (1) A statement of the community's goals, quantified 35 objectives, and policies relative to the maintenance, preservation, 36 improvement, and development of housing. 37 (2) It is recognized that the total housing needs identified 38 pursuant to subdivision (a) may exceed available resources and 39 the community's ability to satisfy this need within the content of 40 the general plan requirements outlined in Article 5 (commencing 9z 21- SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over an eight-year time period. (c) A program --~`=~'- ~~`~ `~°`'' ~ that sets forth an eight year schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following: (1) Identify actions that will be taken to make sites available no later than the end of the fourth year of the planning period for the general plan with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's or county's share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. , Notwithstanding any other provision of law, all rezonings shall be completed and in effect no later than three years after the due date for adopting the final housing element specified in Section 65588 or 65584.02. ~~~=--~ ---a~-`--'_~~ `~ ~~`~~~- `'~~ Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -22- housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (A) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. (B) Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households. (2) Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households. (3) Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. (6) Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has 92 - 23 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (7) The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (d) (1) A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period. (2) The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit towards its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element. (3) Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following: (A) How the joint facility will meet the jurisdiction's emergency shelter need. (B) The jurisdiction's contribution to the facility for both the development and ongoing operation and management of the facility. (C) The amount and source of the funding that the jurisdiction contributes to the facility. (4) The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter. (e) Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following: (1) A housing element or housing element amendment prepared pursuantt 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -24- Section 65584.02 or subdivision (e) of Section 6SS88, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section. (2) Any housing element or housing element amendment prepared pursuant to 633-8~9~ Section 65584.02 or subdivision (e) of Section 6SS88, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section ~ccoo ~_ cccon n~ 65584.02 or 65588. (f) No later than three months before the end of the fourth year of the planning period, any local government that was unable to accommodate its share of the regional housing need for each income level on sites ident~ed in the irrventory completed pursuant to paragraph (3) of subdivision (a) without rezoning shall hold a public hearing noticed pursuant to paragraph (S) of subdivision (a) of Section 65091 to review whether the zoning required by paragraph (1) of subdivision (c) has been adopted. At the conclusion of the public hearing, the local government shall adopt a resolution that finds that either the required zoning has been adopted or that the required zoning has not been adopted. If the required zoning has been adopted, the resolution shall include a reference to each ordinance that zoned or rezoned property. If the required zoning has not been adopted, the resolution shall include a reference to each ordinance that zoned or rezoned property and shall describe the actions that will be taken prior to the end of the fourth year of the planning period to complete the requirements of paragraph (1) of subdivision (c). The local government shall send a copy of the adopted resolution to the department. JL" SEC. S. Section 65584 of the Government Code is amended to read: 65584. (a) (1) For the fourth and subsequent revisions of the housing element pursuant to Section 65588, the department shall determine the existing and projected need for housing for an eight-year period for each region pursuant to this article. For purposes of subdivision (a) of Section 65583, the share of a city or county of the regional housing need shall include that share of the housing need of persons at all income levels within the area significantly affected by the general plan of the city or county. 92 - 25 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (2) While it is the intent of the Legislature that cities, counties, and cities and counties should undertake all necessary actions to encourage, promote, and facilitate the development of housing to accommodate the entire regional housing need, it is recognized, however, that future housing production may not equal the regional housing need established for planning purposes. (b) The department, in consultation with each council of governments, shall determine each region's existing and projected housing need pursuant to Section 65584.01 at least three years prior to the scheduled revision required pursuant to Section 65588. The appropriate council of governments, or for cities and counties without a council of governments, the department, shall adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county at least one year prior to the scheduled revision for the region required by Section 65588. The allocation plan prepared by a council of governments shall be prepared pursuant to Sections 65584.04 and 65584.05 with the advice of the department. (c) Notwithstanding any other provision of law, the due dates for the determinations of the department or for the council of governments, respectively, regarding the regional housing need may be extended by the department by not more than 60 days if the extension will enable access to more recent critical population or housing data from a pending or recent release of the United States Census Bureau or the Department of Finance. If the due date for the determination of the department or the council of governments is extended for this reason, the department shall extend the corresponding housing element revision deadline pursuant to Section 65588 by not more than 60 days. (d) The regional housing needs allocation plan shall be consistent with all of the following objectives: (1) Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low- and very low income households. (2) Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, and the encouragement of efficient development patterns. 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 - 26 (3) Promoting an improved intraregional relationship between jobs and housing. (4) Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent decennial United States census. (e) For purposes of this section, "household income levels" are as determined by the department as of the most recent decennial census pursuant to the following code sections: (1) Very low incomes, as defined by Section 50105 of the Health and Safety Code. (2) Lower incomes, as defined by Section 50079.5 of the Health and Safety Code. (3) Moderate incomes, as defined by Section 50093 of the Health and Safety Code. (4) Above moderate incomes are those exceeding the moderate-income level of Section 50093 of the Health and Safety Code. (f) Notwithstanding any other provision of law, determinations made by the department, a council of governments, or a city or county pursuant to this section or Section 65584.01, 65584.02, 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 are exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). ~~ . SEC. 6. Section 65584.01 ofthe Government Code is amended to read: 65584.01. (a) For the fourth and subsequent revision of the housing element pursuant to Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for an eight-year period for each region in the following manner: (b) The department's determination shall be based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments. If the total regional population forecast for the planning period, developed by the council of governments and 9z - 27 - SB 303 1 used for the preparation of the regional transportation plan, is 2 within a range of 3 percent of the total regional population forecast 3 for the planning period over the same time period by the 4 Department of Finance, then the population forecast developed by 5 the council of governments shall be the basis from which the 6 department determines the existing and projected need for housing 7 in the region. If the difference between the total population growth 8 projected by the council of governments and the total population 9 growth projected for the region by the Department of Finance is 10 greater than 3 percent, then the department and the council of 11 governments shall meet to discuss variances in methodology used 12 for population projections and seek agreement on a population 13 projection for the region to be used as a basis for determining the 14 existing and projected housing need for the region. If no agreement 15 is reached, then the population projection for the region shall be 16 the population projection for the region prepared by the Department 17 of Finance as may be modified by the department as a result of 18 discussions with the council of governments. 19 (c) (1) At least 38 months prior to the scheduled revision 20 pursuant to Section 65588 and prior to developing the existing and 21 projected housing need for a region, the department shall meet and 22 consult with the council of governments regarding the assumptions 23 and methodology to be used by the department to determine the 24 region's housing needs. The council of governments shall provide 25 data assumptions from the council's projections, including, if 26 available, the following data for the region: 27 (A) Anticipated household growth associated with projected 28 population increases. 29 (B) Household size data and trends in household size. 30 (C) The rate of household formation, or headship rates, based 31 on age, gender, ethnicity, or other established demographic 32 measures. 33 (D) The vacancy rates in existing housing stock, and the vacancy 34 rates for healthy housing market functioning and regional mobility, 35 as well as housing replacement needs. 36 (E) Other characteristics of the composition of the projected 37 population. 38 (2) The department may accept or reject the information 39 provided by the council of governments or modify its own 40 assumptions or methodology based on this information. After 9z SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -28- consultation with the council of governments, the department shall make determinations in writing on the assumptions for each of the factors listed in subparagraphs (A) to (E), inclusive, of paragraph (1) and the methodology it shall use and shall provide these determinations to the council of governments. (d) (1) After consultation with the council of governments, the department shall make a determination of the region's existing and projected housing need based upon the assumptions and methodology determined pursuant to subdivision (c). Within 30 days following notice of the determination from the department, the council of governments may file an objection to the department's determination of the region's existing and projected housing need with the department. (2) The objection shall be based on and substantiate either of the following: (A) The department failed to base its determination on the population projection for the region established pursuant to subdivision (b), and shall identify the population projection which the council of governments believes should instead be used for the determination and explain the basis for its rationale. (B) The regional housing need determined by the department is not a reasonable application of the methodology and assumptions determined pursuant to subdivision (c). The objection shall include a proposed alternative determination of its regional housing need based upon the determinations made in subdivision (c), including analysis of why the proposed alternative would be a more reasonable application of the methodology and assumptions determined pursuant to subdivision (c). (3) If a council of governments files an objection pursuant to this subdivision and includes with the objection a proposed alternative determination of its regional housing need, it shall also include documentation of its basis for the alternative determination. Within 45 days of receiving an objection filed pursuant to this section, the department shall consider the objection and make a final written determination of the region's existing and projected housing need that includes an explanation of the information upon which the determination was made. orr o o,...~:~._ cccon nc ~r~t~ ~~_,~.........~_~ r~a~ :,. ,. ,._a~a ~,_, . te-read-: 92 29 - SB 303 1 2 3 , 4 , 5 6 , 7 1 1} 8 ~~ ~ ~~k ~~ € ~ ~i - 3c~t ~ t oe~t 9 ~ e ~ t aettt e oe 10 11 ' ' 12 , 13 ' 14 15 .T 16 , 17 18 , 19 20 ' , , 21 ' 22 23 24 25 , 26 27 28 , 29 , 30 , 31 , 32 33 , 34 , 35 , 36 , 37 38 , 39 ' 40 , 9z SB 303 -30- 1 2 3 4 , 5 6 , ~ ~ -~ ~ ~ ~ i ~ i~~a :- ~ -a •' -~ nee 7 aeeer ~ee t r t ~c ~ e ese~ , 8 9 , 10 , 11 ' 12 , 13 14 15 16 , 17 , 18 19 20 , 21 row =~~et~e~ ee~;=s~err~--~rt~-~ri ek~~~a~~ an 22 23 24 25 , 26 , 27 , 28 29 30 31 32 , 33 , 34 35 . 36 37 ' , 38 39 , 40 , 92 - 31- SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 . , . , ~~ SEC. 7. Section 65588 of the Government Code is amended to read.• 92 SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -32- 65588. (a) Each local government shall review its housing element as frequently as appropriate to evaluate all of the following: (1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives. (3) The progress of the city, county, or city and county in implementation of the housing element. (b) (1) The housing element shall be revised to reflect the results of this periodic review as appropriate, but not less than every-€~e eight years, for a jurisdiction within a regional transportation planning agency or a local transportation commission to reflect the adoption of the regional transportation plan for the area in which the local government is located, and not less than every 10 years for all other jurisdictions to reflect the adoption of the regional transportation plan for the area in which the local government is located. (2) The provisions of paragraph (1) shall take effect beginning with the first review cycle after the completion of the revisions required by subdivision (e). The first year of the first eight- or 10 year cycle set forth in paragraph (1) shall be all of the following: (A) The same as the first year of the regional transportation plan adopted for that region. (B) Two years after the actions required to be taken by the department pursuant to Section 6SS84. (c) The review and revision of housing elements required by this section shall take into account any low- or moderate-income housing provided or required pursuant to Section 65590. (d) The review pursuant to subdivision (c) shall include, but need not be limited to, the following: (1) The number of new housing units approved for construction within the coastal zone after January 1, 1982. (2) The number of housing units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, required to be provided in new housing developments either within the coastal zone or within three miles of the coastal zone pursuant to Section 65590. 9z - 33 - SB 303 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (3) The number of existing residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been authorized to be demolished or converted since January 1, 1982, in the coastal zone. (4) The number of residential dwelling units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been required for replacement or authorized to be converted or demolished as identified in paragraph (3). The location of the replacement units, either onsite, elsewhere within the locality's jurisdiction within the coastal zone, or within three miles of the coastal zone within the locality's jurisdiction, shall be designated in the review. (e) Notwithstanding subdivision (b) or the date of adoption of the housing elements previously in existence, each city, county, and city and county shall revise its housing element according to the following schedule: (1) Local goverrunents within the regional jurisdiction of the Southern California Association of Governments: June 30, 2006, for the fourth revision. (2) Local governments within the regional jurisdiction of the Association of Bay Area Governments: June 30, 2007, for the fourth revision. (3) Local goverrunents within the regional jurisdiction of the Council of Fresno County Governments, the Kern County Council of Governments, and the Sacramento Area Council of Governments: June 30, 2002, for the third revision, and June 30, 2008, for the fourth revision. (4) Local governments within the regional jurisdiction of the Association of Monterey Bay Area Governments: December 31, 2002, for the third revision, and June 30, 2009, for the fourth revision. (5) Local governments within the regional jurisdiction of the San Diego Association of Governments: June 30, 2005, for the fourth revision. (6) All other local governments: December 31, 2003, for the third revision, and June 30, 2009, for the fourth revision. (7) Subsequent revisions shall be completed not less often than at~rve wear eight year intervals following the fourth revision. 92 SB 303 - 34 1 ~~ 2 SEC. 8. No reimbursement is required by this act pursuant to 3 Section 6 of Article XIIIB of the California Constitution because 4 a local agency or school district has the authority to levy service S charges, fees, or assessments sufficient to pay for the program or 6 level of service mandated by this act, within the meaning of Section 7 17556 of the Government Code. O 92 ATTACHMENT B Draft Letter of Opposition July 15, 2008 Senator Denise Moreno Ducheny State Capitol, Room 5035 Sacramento CA 95814 Re: SB 303 (Ducheny) Local Government: Land Use Planning Notice of Position: OPPOSE UNLESS AMENDED Dear Senator Ducheny: The City of Tustin regrets to inform you that it opposes SB 303 (Ducheny). The City appreciates the purpose behind SB 303 to address the emissions of greenhouse gas (GHG). However, SB 303 proposes too much process for developing a regional planning scenario within the Regional Transportation Plan. In addition, the City of Tustin has the following concerns and comments: • SB 303 conflated RTP, Housing Element, and GHG emission and Climate Change processes and requirements. The bill loads too much of the process for developing a regional planning scenario within the RTP; thus creating convoluted local mandate programs and updates that cities are responsible to implement. • RTPs and Blueprints are two distinct documents. RTPs are conduits for federal transportation funding, not overarching planning documents that try to resolve the regions' other planning related issues i.e. housing needs, CEQA, local land use authority, etc. Blueprints (mostly included within SB 375 and partially proposed within SB 303) should forecast realistic development and should be endorsed by local government before being incorporated into the RTP. • Blueprints can identify a growth pattern for a region, but individual local government must retain full discretion over local land use decisions. • The bill requires cities to rezone properties within three (3) years. This three years requirement is not realistic and imposes burdens on local government especially during the uncertainty of local housing market. In addition, without proper legal protection, cities cannot impose zone changes involving multiple property owners without proper due process. Senator Denise Ducheny SB 303 July 15, 2008 Page 2 • The bill does not include a funding source for either planning or funding the infill infrastructure that will be necessary to facilitate the type of infill necessary to reduce GHG emissions. The bill also does not include necessary funding for necessary infrastructure improvements to accommodate increase density, intensity, and capacity as suggested by the Bill. • The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. For these reasons, the City of Tustin must oppose SB 303 in its current form. If you have any questions, please contact Elizabeth A. Binsack, Community Development Director, at (714) 573- 3031. Sincerely, Jerry Amante Mayor C: Chair and Members, Assembly Appropriations Chair and Members, Assembly Local Government Committee Chair and Members, Assembly Transportation Committee Chair and Members, Assembly Housing and Community Development Committee Debbie Michel, Consultant, Assembly Local Government Committee Cynthia Bryant, Director, Governor's Office of Planning and Research Lynn Jacobs, Director, Department of Housing and Community Development City Council Members William A. Huston, City Manager Elizabeth A. Binsack, Community Development Director AB2112 (Saldana and Lieu) Energy: building standards AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: LEGISLATIVE REPORT: ASSEMBLY BILL (AB) 2112, ENERGY BUILDING STANDARDS SUMMARY: State Assembly Bill (AB) 2112 would authorize the California Energy Commission (CEC) to adopt building standards requiring that all new residential construction be "zero net energy buildings" by 2020. RECOMMENDATION: That the Tustin City Council oppose AB 2112 and direct staff to transmit the attached letter. FISCAL IMPACT: There are no significant fiscal impacts associated with this action. BACKGROUND AND DISCUSSION: On July 1, 2008, the Tustin City Council requested staff to review and provide information regarding AB 2112. Current law requires the California Energy Commission to establish building standards that increase energy efficiency for all new residential buildings. The standards are updated periodically to recognize new energy efficient technologies, materials and methods that are established in the California Building Code that is adopted by the City of Tustin. The proposed bill would require the California Energy Commission and the Public Utilities Commission to increase energy efficiency requirements and new requirements for distributed generation so that newly constructed residential buildings will be "zero net energy buildings" by the year 2020. "Zero net energy buildings" reduce energy usage by combining stringent energy efficiency measures with on-site energy generation, such as solar panels and geothermal heat pumps. Essentially, the amount of energy provided by on-site renewable energy sources is equal to the amount of energy used by the building. It would also define "zero net energy building" as a building that City Council Report AB 2112 July 15, 2008 Page 2 implements a combination of building energy efficiency design features and onsite clean distributed generation that results in no net purchases from the electricity or gas grid. According to the proposed bill, the standards are required to be cost-effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. Staff believes that AB 2112's mandated implementation of a "zero net energy building" requirement by the year 2020 must be predicated upon the availability of cost effective technologies, materials, and methods at that time. The current bill assumes that the required technologies, materials, and methods will be readily available to builders and that these technologies, materials, or methods would not be cost-prohibitive. If assurances in this regard cannot be obtained, the mandate could deter new home development after the year 2020. A copy of the bill is included as Attachment A to this report. Dana Ogdon Assistant Director Elizabeth A. Binsack Community Development Director Attachments A: Draft Letter of Opposition B: AB 2112 S:\Cdd\CCREPORTAB 2112.dx Attachment A July 16, 2008 The Honorable Mark Leno Chair, Committee on Appropriations State Capitol Building, Room 2114 Sacramento, CA 95814 SUBJECT: AB 2112 (SALDANA AND LIEU) -LETTER OF OPPOSITION Dear Assembly Member Leno: On behalf of the City of Tustin, I wish to express our opposition to Assembly Bill 2112. Current law requires the California Energy Commission (CEC) to establish building standards that increase energy efficiency for all new residential buildings. The standards are updated periodically to recognize new energy efficient technologies, materials, and methods that are established in the California Building Code that is adopted by the City of Tustin. The proposed bill would require the California Energy Commission and the Public Utilities Commission to increase energy efficiency requirements and new requirements for distributed generation so that newly constructed residential buildings will be "zero net energy buildings" by the year 2020. It would also define "zero net energy building" as a building that implements a combination of building energy efficiency design features and onsite clean distributed generation that results in no net purchases from the electricity or gas grid. According to the proposed bill, the standards are required to be cost-effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. The Tustin City Council has considered the proposed legislation and believes that AB 2112's mandated implementation of a "zero net energy building" requirement by the year 2020 must be predicated upon the availability of cost effective technologies, materials, and methods at that time. The current bill assumes that the required technologies, materials, and methods will be readily available to builders and that these technologies, materials, or methods would not be cost-prohibitive. If assurances in this regard cannot be obtained, the mandate could deter new home development after the year 2020. Unless amended, the City of Tustin cannot support AB 2112. Honorable Mark Leno July 16, 2008 Page 2 If you have any questions regarding this matter, please contact me or Elizabeth Binsack, Community Development Director, at (714) 573-3031. Sincerely, Jerry Amante Mayor cc: Assembly Member Walters Assembly Member Caballero Assembly Member Davis Assembly Member DeSaulnier Assembly Member Emmerson Assembly Member Furutani Assembly Member Huffman Assembly Member Karnette Assembly Member Krekorian Assembly Member Malfa Assembly Member Lieu Assembly Member Ma Assembly Member Nakanishi Assembly Member Nava Assembly Member Runner Assembly Member Solorio Bill Higgins, League of California Cities Orange County City Managers S:\Cdd\SCOTT1Legislation\S 1499 Position Letter.doc Attachment B AMENDED IN ASSEMBLY MAY 23, 2008 AMENDED IN ASSEMBLY MARCH 24, 2008 CALIFORNIA LEGISLATURE-200]-OS REGULAR SESSION ASSEMBLY BILL No. 2112 Introduced by Assembly Members Saldana and Lieu February 20, 2008 An act to amend Section 25402 of the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 2112, as amended, Saldana. Energy: building standards. The Warren-Alquist State Energy Resources Conservation and Development Act requires the State Energy Resources Conservation and Development Commission to adopt building design and construction standards, and energy and water conservation standards to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including energy associated with the use of water. This bill would require the commission to adopt, in collaboration with specified parties, building design and construction standards, and energy and water conservation standards to require new residential constructions commenced on or after January 1, 2020, or on a date by which the commission determines that the use ofphotovoltaic technology is cost effective, whichever is later, to be zero net energy buildings. This bill would define the term "zero net energy building." This bill would also make a technical change by deleting an obsolete statutory cross-reference. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 97 AB 2112 -2 The people of the State of California do enact as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 SECTION 1. Section 25402 of the Public Resources Code is amended to read: 25402. The commission shall, after one or more public hearings, do all of the following; in order to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water: (a) (1) Prescribe, by regulation, lighting, insulation climate control system, and other building design and construction standards that increase the efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. (2) Prior to adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by takings into account the overall benefit derived from water efficiency standards. Nothing in this subdivision in any way reduces the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code. (3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be 97 - 3 - AB 2112 1 equivalent to or superior to the performance, safety, and protection 2 of life, health, and general welfare standards contained in Title 24 3 of the California Code of Regulations. The commission shall 4 consult with the members of the coordinating council as established 5 in Section 18926 of the Health and Safety Code in the development 6 of these standards. 7 (b) (1) Prescribe, by regulation, energy and water conservation 8 design standards for new residential and new nonresidential 9 buildings. The standards shall be performance standards and shall 10 be promulgated in terms of energy consumption per gross square 11 foot of floorspace, but may also include devices, systems, and 12 techniques required to conserve energy and water. The commission 13 shall periodically review the standards and adopt any revision that, 14 in its judgment, it deems necessary. A building that satisfies the 15 standards prescribed pursuant to this subdivision need not comply 16 with the standards prescribed pursuant to subdivision (a). Water 17 conservation design standards adopted pursuant to this subdivision 18 shall be demonstrated by the commission to be necessary to save 19 energy. Prior to adopting a water conservation design standard for 20 residential buildings, the Department of Housing and Community 21 Development and the commission shall issue a joint finding 22 whether the standard (A) is equivalent or superior in performance, 23 safety, and for the protection of life, health, and general welfare 24 to standards in the California Building Standards Code and (B) 25 does not unreasonably or unnecessarily impact the ability of 26 Californians to purchase or rent affordable housing, as determined 27 by takings into account the overall benefit derived from 28 the water conservation design standards. Nothing in this 29 subdivision in any way reduces the authority of the Department 30 of Housing and Community Development to adopt standards and 31 regulations pursuant to Part 1.5 (commencing with Section 17910) 32 of Division 13 of the Health and Safety Code. 33 (2) In order to increase public participation and improve the 34 efficacy of the standards adopted pursuant to this subdivision and 35 subdivision (a), the commission shall, prior to publication of the 36 notice of proposed action required by Section 18935 of the Health 37 and Safety Code, involve parties who would be subject to the 38 proposed regulations in public meetings regarding the proposed 39 regulations. All potential affected parties shall be provided advance 40 notice of these meetings and given an opportunity to provide 9~ AB 2112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -4 written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties' design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration prior to the start of the notice of proposed action any input provided during these public meetings. (3) The standards adopted or revised pursuant to this subdivision and subdivision (a) shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, impact on product efficacy for the consumer, and the-li€e-eyele life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, economic impact on California businesses, and alternative approaches and their associated costs. (c) (1) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs; to promote the use of energy and water efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards shall become effective no sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards shall not be sold or offered for sale in the state, unless it is certified by the manufacturer thereof to be in compliance with the standards. The standards shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. In order to increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the 97 - 5 - AB 2112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 commission shall, prior to publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties' design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration prior to the start of the notice of proposed action input provided during these public meetings. The standards adopted or revised pursuant to this subdivision shall not result in added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, impact on product efficacy for the consumer, and the-lt€e--eyek life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, economic impact on California businesses, and alternative approaches and their associated costs. (2) Anew appliance, except for any plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance. (3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance. (4) Neither the commission nor any other state agency shall take action to decrease a standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for an 97 AB 2112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. Before January 1, 1986, the commission shall not take action to increase a standard prescribing minimum levels of operating efficiency for an appliance or adopt a new standard under paragraph (1). Before January 1, 1986, an appliance manufacturer doing business in this state shall provide directly, or through an appropriate trade or industry association, information, as specified by the commission after consultation with manufacturers doing business in the state and appropriate trade or industry associations on sales of appliances so that the commission may study the effects of regulations on those sales. These informational requirements shall remain in effect until the information is received. The trade or industry association may submit sales information in an aggregated form in a manner that allows the commission to carry out the purposes of the study. The commission shall treat sales information of an individual manufacturer as confidential and that information shall not be a public record. The commission shall not request information that cannot be reasonably produced in the exercise of due diligence by the manufacturer. At least one year prior to the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following: (A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigeration, and Air Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard. (B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same. (C) Adjust the minimum level of operating efficiency in an existing standard in order to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same. 97 - 7 - AB 2112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted. (E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 ofthe Government Code. (5) Notwithstanding paragraph (4), the commission may adopt standards pursuant to Commission Order No. 84-0111-1, on or before June 30, 1985. (d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved. (e) The commission shall do all of the following: (1) Not later than January 1, 2004, amend any regulations in effect on January 1, 2003, pertaining to the energy efficiency standards for residential clothes washers to require that residential clothes washers manufactured on or after January 1, 2007, be at least as water efficient as commercial clothes washers. (2) Not later than April 1, 2004, petition the federal Department of Energy for an exemption from any relevant federal regulations governing energy efficiency standards that are applicable to residential clothes washers. (3) Not later than January 1, 2005, report to the Legislature on its progress with respect to the requirements of paragraphs (1) and (2). (f) (1) The standards adopted by the commission pursuant to subdivision (a) or (b) shall require a new residential construction commenced on or after January 1, 2020, or on a date on which the commission determines that the use of photovoltaic technology is cost effective, whichever is later, to be a zero net energy building. (2) For the purposes of this subdivision, the term "zero net energy building" means a building that implements a combination of building energy efficiency design features and clean onsite or 97 AB 2112 - 8 - 1 near-site distributed generation that result in no net purchases from 2 the electricity-e~-gas grid on an annual basis andproduces enough 3 electricity to offset the energy use attributable to an onsite use of 4 purchased natural gas. 5 (3) In developing the standards pursuant to this subdivision, the 6 commission shall consult with the Public Utilities Commission, 7 the electric and gas utilities, and other interested parties. O 97 HR3121 (Congresswoman Maxine Waters) Mandated flood Insurance AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: LEGISLATIVE REPORT -HOUSE OF REPRESENTATIVES (H.R.) 3121 UPDATE SUMMARY: If approved, proposed House of Representatives (H.R.) 3121 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. The changes proposed would extend the mandatory purchase of flood insurance, where it is not currently required, affecting an unknown number of 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. On June 3, 2008, the Tustin City Council directed staff to transmit the attached letter of opposition to H.R. 3121. On July 1, 2008, the City Council requested staff to provide an update on the status of the bill. RECOMMENDATION: Pleasure of the City Council. 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. BACKGROUND AND DISCUSSION: Sponsored by Congresswoman Maxine Waters (D-CA), H.R. 3121 was passed by the House of Representatives (263 ayes, 146 nays) on September 27, 2007, and also by the Senate (92 ayes, 6 nays) on May 13, 2008. It has been forwarded to Committee Conference to work out wording differences that have occurred between the House and Senate versions of the bill. Following Committee review, it will be passed to the President of the United States for signature. 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 City Council Report HR 3121 July 15, 2008 Page 2 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. If enacted, the bill could potentially impact a majority of residents within the City of Tustin, requiring mandatory flood insurance coverage where it has not been required in the past. The legislation directs FEMA to revise Flood Zone maps and inform previously uninsured residents of the need for flood insurance. Until these maps are completed and released, it is not possible to determine how many Tustin residents would be impacted. Most of Tustin is protected by the Prado Dam. Homes constructed within the Legacy could be assessed approximately $850 per year for flood insurance coverage. With the additional increase of 10-15 percent 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 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. On June 3, 2008, the Tustin City Council directed staff to transmit the attached letter of opposition to H.R. 3121 (Attachment A). The letter was sent June 9, 2008. A copy of H.R. 3121 is attached to this report (Attachment B). Dana Ogdon Elizabeth A. Binsack Assistant Director Community Development Director Attachments A: June 9, 2008 Correspondence B: H.R. 3121 S:\CddYvnytLet7islaUve updatesUiR 3121 staff rpt b.doc ATTACHMENT A Office of the City Council June. 9, 2008 The Honorable John Campbell United States Congress, 48"' District 610 Newport Center Drive, Suite 330 Newport Beach, CA 92660 SUBJECT: N.R. 31.21 (WATERS) -LETTER OF OPPOSITION Dear Congressman Campbell: On behalf of the City of Tustin, 1 wish to express our oppdsition to H.R. 31.21, known as the "Flood Insurance Reform and Modernization Act of 207." We a.t•e 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 food hazards if it were not for the existence of a structural flood protection system, such as the Prado Daim 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 arany 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 t:he statistical calculation of risk or life expectancy for insurance purposes on local communities, insurance companies, and local land use have not yet been detenxtined. Nor has it been determined what these risks will pose to the NF1P and t:he 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 tl~e past and causing an tlnd.ue burdetl 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. We would appreciate your thoughts and opinions regarding H.R. 3121. Sincerely, Jerry Amante Mayor ATTACHMENT B In the Senate o f the United States, ~Vln,~ 1.~, X008. Resolved, That the bill from the House of Representa- tives (II.1~,. 3121) entitled "11n tlct to restore the financial solvency of the national flood insurance program and to pro- ~~ide for such program to make available mtdtiperil coverage for damage resulting from windstorms aril floods, and for other purposes.", do pass with the following AMENDMENT: Strike out a.ll after the enacting clause and insert: 1 SECTION 1. TABLE OF CONTENTS. 2 l~,e table gf'eo~wte.~n,ts.foj° this Act is czs follows: Sec. 1. Table of'coiate~its. TTTT,F. I-FLlll)n INASUT~~1\I'F, RF.FI)Pl~l.l~ti7) il!OnF,R~lT7,.lTION Sec. 101. Short title. ~~~BC. ~1),'?. F''GILIttT71t.C. Sec. 103. DcfT~natio~is. ~~'ec. 104. F.:xte~asaon of tiut~oiutl Floocl Instcra~ace Program. ~~'ec. 105. ~li~ailability of'a~asura~~ace for n~~ttltifarr~til~ trrot~e~r~ties. .~'ec. 106. Reform of t~renzi~t~m ~°ate st~n~ct~~re. ~~~ee. ZOi. D~an.rlatorrt coueraye areas. .~'ec. 103. Pren~iu~ii «t~justn~e~~t. ~~'ec. 109. b"tate cha~fiererl,fanuncial iristittttaoras. ~~"ec. T 10. F,~~furcem~i~t. .~'ec. 111. Escruin of',/luod ~~ist~ru~~ce pa,yutie~zts. ~~"ee. 11~~. Bor•rou~i~ay ctutho-rant debt.foi•,yiee~tess. Sec. 113. Minimum. dedtu+tibles ,fin• claims under the Nation~d F'lond Insua•a~nce ~1'Ol~1'atm. ~~"ec. 114. Corasiderat~ions in deterrrtii~iii~g chap°ger~ble prewiia~n~ ~•c~tes. Sec. 115. ReserT~e fined. Sec. 116. Repa71aneut playa for borrou+ing autho~~ity. ~~~P.C,. 11 i. Pa JTnBlat Of PoladoallaYn1a711 claJ7Yas. ~~"ec. 118. Tec•h~aical llat~pi~~grld~~isory C,o~ic~~c~il. b'ec. 119. Natio~~a~l F7oorl Vlappinq Pa°ogram. b'ec. 120. Removal of h:m~#nt~ion on State eontributi.ons for npdatiny flood maps. ~1eG 121. t~On1'd G1a(1 t20n. ~«. 122. Inter,i0e~ticy eoordiaaatioaa study. .~'ec. 123. tUoryrma~adato~r•y pn~r•ticipatioaa. Sec. 12~. ~Vot~ice of flood ins~an•a~nce aauailability uaader RESP.4. ,dec. 125. Test~inq of new flood pa°oofiaay teclaatoloyies. .5~ec. 12G. Participation i.n State disaster chinas media-t~ion, prograzans. ~,~~P.C. 127. Re'LtFrat'a 077 Of FE1L1 1"eSpOnSlbd'atl BS 7n2dP)' tl2e 2004 Refa7"171- ~et. b'ec. 128. .ldd~itional an-thoa°ity of FE11L1 to collect informat,ioai o~z claims pay- ments. ,1ec. 129. Expe~aase ari,~rrzbau•.cenaenfs nf'in.currance conapa~aie.e. ~~"ec. 130. Extens~iara of pilot pror]ra~rn fo~° nri.tigattion of sere~•e r•epetitiue loss prop- ertics. ti1'ee. 131. Flood insurcnace advocate. Sec. 132. St~cdies a~a.d Repot~ts. Sec. 133. Feasibility st7cdy ora private reiusinnrace. SP.C. 13-~. Pol2cy d7,SClosnres. Sec. 1.;5. Repo~a~t o~~ inclusio~~ of bui,ldiny codes tin fioodplaiu naan~~yement, cri- TITLE II-CO[113iISSI0IV Old iti~~T DR 9L C:~~TAa9THOPHE RI~S'K .ILi~VAGE~1lENT ~~~D INSL'R~~'VCE ti~~P.L'. 201. Stb01"t tRtlP,. b'ec. 202. Firadi.aays. Sec. 203. Establishment. Sec. 204. D7embership. Sec. 205. Duties of Hae C'ommtssi-on. ,~~ec. 206'. Report. b'ee. 20. Powers of tlae Convmissio~aa. ~~'ec. 208. Comnaissio~a persoaaaael arautters. .1'ec. 20y. Ternainatiou,. ,~~'ec. 210. ~lntho-rization of apprnpa~ia#inras. TITLE III-lIISCELL~~UEOL"S ,dec. .402. L'iy Sa:nua• River read .skunk Creek, Sinn.~• P+adlx, Suiatti Dukuta. b'ec. 302. Suspension of petrulcarna acquisition for b'trateyic Petruleurn Reserre. •HR. 3121 EAS :3 1 TITLE I-FLOOD INSURANCE 2 REFORM AND MODERNIZATION 3 SEC. 101. SHORT TITLE. 4 Tliis tale niay he cued as the "I+'lood Ins~urarlce Refor~rrz 5 and Mode~r~rvization ~lct of 2008". 6 SEC. I02. FINDINGS. 7 Co~r~gress f i~r~~~s th~xt- 8 (1) t/tie flood i~ris2~r~•ance clavr~~s ~res2dtir~~g f~r•or~t the 9 h~,~rrica~r-,e season of 2UU5 'will likely ea;ceed all p~re- 10 vious claims paid by the National, blood Ij~~si~ra~n-ce 11 Pry gram; 12 (~) in order to pay the legitimate clu,ims of pol- 13 icyholde~s from the h,t~~°ricane season of X005, th-e I+'ed- 14 e7°al E~me~;gency ~'~7anage7nent, Agency h-as Uorrowed 15 over $20, 000, 000, 000 from the 1'reaszti7 y; 16 (3) the ijderest alortie an thus debt, is crl~rrzost 17 ~1, 000, 000, 000 ann~acally, and that the Fede~~°al En~er- 18 gene?~ Manage7rae~nt Ager~,cy has ~-~r~dicate«? that dt, ~ivi,ll. 19 he ~u.~raahle to pay back; this debt; 20 (~) the ,flood ~ins~tir°a~r~ce p~r•og~rana rrz2~st he 21 strerr.gth,e~n,ed to ens2~re 'it ca~z pay,fitit~t~r•e clai~rrzs; 22 (~) ~wh;i,le .flood ~,~~s~r~7~•ance is m,arldatory ~n tltie 23 100-year .floo~lplain, substantial flooding occtti~•s ont- 24 side of e~~isti7tiq special (loud hazard a r~eas; •HR 3121 EAS 1 (6) 'recent ewe~r~ts throuyho2ct the co2~~rtit7 y i~r-vol2~- 2 -ing areas beh.~i-r-d ~rna~rti-made st,~r~~ct2tres, krno~-~rr~- as "~re- 3 sid,2cal ~r•is~;" area-s, yrcrve prod,~uced catast,-•ophic losses; 4 (%) alth.ouglr s~-clr rr-,a~rti-rr-~~rde st~rt~etu~res p~rod-cc~e 5 an added ele~rne~nt of safety a~r~rd the'refo're lessen the 6 probubil~ity that a disaster ~w~ll oec~ur, they are never- ? theless susceptible to catastrophic loss, even tho~c~~h 8 s2cch areas at one ti~nae were not inc1,2.~ded w~ith;in the 9 100-year,floodplain; a,-rid, 10 (8) vobr~~ntary participation in the National ll 1+'lood Insura~-ee Program has been neininzal and 12 many fa~rntilies ~°esddi~raq o2cts~ide the 100-year flood- 13 plain ~re~rr-.ain ~-~-r1,a~-va,~re of the potential r°isl~ to thetir 14 1 Ives ~a~nd prope~r~ty. 15 SEC. 103. DEFINITIONS. 16 (a) I1v GH..vFR:~I,.-In this t,~,tle, the fnllo~iv2~ng defi~n,i- 17 t,~aor-s shall, a-pply: 18 (1) DIRECTOR.-'L~ te~~°~rrt "Di.rector" means the 19 ~dmi;yristrator of the I+'ederal, Em.ergeney 1llanuge~ment 20 Agency. 21 (,~~ N~1TIO~~~L FLOOD I~ti~S'L'Rf1.tiCE YROrR~1L- 22 The term "~l ~rtional, Flood, Insu~r•ance Y~r~ogram" 23 yn,eans tltie pro~~r•arn established u~nde~~~ the National 24 Flood Insurance pct, of 1068 (~.~ U.b~.C. X011 et seq.). •HR 3121 EAS :) 1 (3) 100-YE~1P FLOODPLALI'.-The term "100-~ea~r 2 floodplai,rl" ntiea~ns that area ~t~h,ich, 'is subject to ~i,rl2r.rr- 3 dati,on ,f-roan a .flood h.aviryag ~ 1 percent ch.a~nce of 4 being egz~aled, o~r exceeded irr, arl~g given 1~ear. S (~~ 500-YEAR PLOODPL~IN. -The te~r~nti "5UU- ~ea~r 6 ,floodplain" meartis that urea which is snUjeet to i~n,tcn- 7 elation froryn a ,flood having a 0.2 percent cha~zce of 8 being eg2~aled or exceeded i~n an;y given gear. 9 (5) WRITE I'oi1R Otii~.-The term "YVa°ite Yo2~r 10 Own" means the coope~~at~ive undery°tak,~ng between th.e, 11 insurance i~rld2cst~°lg a~r~tid the Flood Insurance Ac~nainis- 12 t~r°atio~r~a ~~~h;ich allows pa7~ticipatiry~l-g prope~rt~g and cas- 13 u-alty insurance co~rnpan~ies to ~u~rite and service stand- 14 and flood insTr~rance policies. 15 (h) COM~ti10V TERMII'OLOUY.-E:.rcept as other~~t~ise p~ro- 16 v~ided ~in this title, an,z~ te~rnas used 2n, this title shall have 17 the n~.eanirag given to such ter°nas ltinder section 13%U of t,1i,e 18 National Flood Insurance flct ~~ f 1 J6'8 (42 U.S.C. 41 ?1). 19 SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE 2O PROGRAM. 21 Sectaon 131.9 of tltie 1~ational Flood Insurance pct of 22 19F8 (42 U.b~.C. X026), is amended bg sty°ik•ing ",008" and 23 inse~~ting ".?013. ". •HR 3121 EAS F) 1 SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 2 PROPERTIES. 3 ~5~ection 1305 of the 1~ational, 1+'lood Ins~~rance Act, of 4 1968 (42 U.S.C. 4012) ~i-s amended by adding at th,e end 5 the following: f) "(d) AV~IL~IBILITY OF INb~PRl~~'CE FOR .~71'LTIFAJIILY ~ PROPERTIES.- 8 "(1) Iw GEwER~~.-The Di'recto'r sh,a,ll ~niake 9 flood ~i~ns2crance available to cover ~°esident~ial ~rop- 10 e7°t~i.es of more tha~~ 4 2~nits. 1~'otav~ithsta~r~-di.ng ~~r~y ll oth.er ~rovi-sio~ra of lati~, the ~~r~,a:rini,un~. co~i~erage 12 anao~z~r~i.t tl~:at tlae D~,r°ector rr~~2~ nr,a/~e awa,~,G~xhle ~c~>>der 13 tlti~s s~ttibsect,~i,o~ya to s2tch ~residentia,l prope~j°t~-es shall be 14 eq~ieal to the coverage amo~itint made avai.lu,ble to com- 15 mercial ~ro~ert~ies. 16 "(2) RULE OF CONb"TRUCTION.Nothing in this 17 subsection shall be constrz~ed to Limit the abilit,~ of in- 18 dtviduals res~id~ing i~n residential p7°o~ert~ies of more 19 than 4 un,~its to obtain insurance for the contents and 20 perso~tial a'j°ticles located in such residences. ". Z 1 SEC. 106. REFORM OF PREMIUM RATE STRUCTURE. 22 (a) TO EXCL ZIDE CERTfiL'V PROPERTIES FRO~'~I h'E- 23 CEIVNG ~~~LIBb~ID77El~ PRE~VIIUII Kt~TL'+ ~~.- 24 (1) L'v UENERAI,.-~,~~ecto~r~ 130% of the Nat~i,onal, 25 flood Ins2~~~°a,~nce pct of 1968 (42 U.S.C. 4014) is 26 anzer~ded •HR 3121 EAS 1 (A) iii szi.hsectio,iz (a)- 2 (i-) i-n pa~ray~ra~h. (2), h y st~r~~ils~~i~r-g `; 3 a~~r-d," avid ~inse~rt~i~r-g a se~r~-icolo~rt; 4 (ii) ire ~a~ra,graph (~), by st~~°~i-I~ir-,q tltie 5 ~~el°~i.od at the e~r~d and inse~~i,~~-g `; aj~d'; 6 a~yi.d 7 (~itii) by adding at the end th,e ,fol,- 8 low~iny: 9 "(4) the e.x~;bus~ion of ~~~ospect,~ive insu~°eds from 10 purchas2ng flood insurance at ~~ates less than tl~,ose es- 11 tn~~ated u~rader parag~°aph (1), as ~°equi~red b~ para- 12 g~~aph (2), for certaer~ properties, i7~icludinq for 13 "(~~) ~rny prope~~~ty which, is r-ot the prirraary 14 resi-denee of a~n indivirt~ual,; 15 "(B) any severe ~repeti,tive loss ~~~ro~e~j~y, as 16 defiyud 'in section 13(i1~(h); 17 "(C) a,r2y y~ropej°ty that has ~b-~,cu~j°red ,flood,- 18 related, damage i,~ti ~whiclz the ct.~m~t~lat2,ve a~n,n~icnts 19 of ~~ccyments under this title equaled or' e:xxeeded 20 tl-,e fair ~mark~et value of such ~»°o~e~~~t;i~; 21 "(D) any bicsi~ness ~»°o~e~r~t'J; a,nd 22 "(F) any property zvh~ieh on or after the 23 date of er-actmer-t of the 1+'lood Insur°ance R~fo~.,rra 24 cvnd 1lodern~azatiori let of ,>008 has e:;cperies~eed 25 or° sustain-ed- •HR 3121 EAS 1 "(i) substantial dar~~aye exceedti~riy ~0 2 t~~e~rce~rd of the fair rn~ark~et value of s~2u°h 3 p'rope~r~ty; or 4 "('ii) s~tcbsta~rR-tia~ ~i,rrap~roven~e~rlt e~rceed- 5 d~~ig 3O pe~j~ce~rd of the fai~r• rr~,a,~rk•et value of 6 si~clti property.'; and 7 (B) vy addin~~ at the end the fdlo~zviny: S "(q) NO E1TEiti'S~ION OF ~ UBSIDI' TO NEl4" POLICIEb' 9 oR LAPb'ED POLICIES.-The Dhector shall, not p~~ovade 10 flood insurance to prospective insureds at rates less than 11 those estirynated under subsectio~ri (a)(1), as rewired by 12 paraq~rapl~ (2) of that subsection, for 13 "(1) any prope~r~ty not i~rlsured by the,fLood i~fisur- 14 arzce proyrarn as of th.e date ~~f enact7~rzent, of the ~+'lood 15 Irasura~race Reform, and Mode~rnizatio~n. Act of ?008; 16 "(~) any policy u~idej- the .flood tins~ti~rarlce pro- 17 gram, tl~Lat has lapsed i,n covera,,ge, as a result ~~f the 18 deliberate choice of the li,ulder of such polio; and 19 "(3) ayiy prospecti~ue i,nsi~red whorefuses to ac- 20 cept any offer for ~mitiyation assistance b,y the Ad- 21 ~m~antstra,to~° (inclicding an gffer to 7°elocate), incla~ding 22 an offer of m~atigatian assistance- 23 "(A) follo2oing a n~~zjor disaster, as d~f~~ied 24 i~ti sectiur~i 10,E of the Robert T. Staffrr~°d Disaster •HR 3121 EAS 9 1 Relief ar~d Eniergerzcy ~~ssistar~ce dct (42 U.S.C. 2 .5122); ~~r 3 "(B) ~i.r~~, co~rz~r~,ectior~, ~avith,- 4 "(~i-) a ~°epetit~ive loss p~°oper~t?~; o~r- 5 "(i.i) a sever°e repetitive loss prope~~~ty, 6 as t1~at term, is defined t~~rzder section 7 136'IA. ". 8 (2) EFFEOTIt'E PATE.-The amendments made 9 by paragraph (1) shall become effective 90 dazes after 10 the date, of the enactntient of this t-title. 11 (v~ INCRE~~b'E ITV f~ti~ti'Uf1L LlitillTrlTlnl~% ON PRE~ti1Ii'1V1 12 INCREASERS.-Sectio~r~ 1308(e) of the l~atio7tial, l+'lood Insur- 13 a~rtice 11ct of 19F8 (42 U.b~.C. 4015(e)) 'is a~rzended- 14 (1) by st~ri-ki-yl,q "u~r~.der this title for arty 1r~°op- 15 er~ti,es tui.thin a~rl,y single" ~zr-d i,nsej~irlq the ,follotvi~ng: 16 "under th,%s title for cc~rtiy pr•ope~r~ties- 17 "(1)within a~r~~y s i,ngle' ; apt-d 18 (.'~) Zy striking "10 percent," a~n,d i.nsert,~i~.g "15 19 percent"; and 20 (.3) ~y striking the period at the end and insert,- 21 ing the follow~i~rzg: `; and 22 "(~) desc~°ibed in sect-ion 1307(x)(4) shall ve in- 23 creased by 2.5 pe7•certit each yexr, ~wrtitil the average 24risk prer~~~ai~zt~rri rate ,fo'r sitich properties 'is eg2r,al to tltie •HR, 3121 EAS 10 1 average of th,e r°~isk p~re~rrraur~a rates ,fo'r p~r~opertties de- l s~i°i,bed u,~rider pxrxgrap/~. (1) " 3 SEC. 107. MANDATORY COVERAGE AREAS. 4 (a) SPECK FLOOD HLtz uiD ~1LLE'1~5~._Not late9' titan 5 9U clays c~ttPr the date of er~xet~r»,er~t of this title, the D~i.-°ecto~r 6 shall, i-ss~tce final regT~lations establish-ling a re~t~tised definition 7 of areas of st~ecial,flood hazards,for p~icrposes of the llatio~ial 8 Flood Ins~crance Prc~grana. 9 (b) RESrDt~~ RISK ~~E'~S.-The 7°egulations ~•eg2ci~•ed 10 by subsection (a) shah ll (1) ~inchcde any area previously ident~~fied by the 12 Di~recto~~° as ~n area h.ari7l,g special flood haza-rds 13 n,nder section 102 of the flood Disaster Protect~io~a ~lct 14 o f 1.9 7.3 (~,~ U. ~~~. C. 4012x); x~n-d 15 ('?) req~cire th,e expxnsin~n, of xrexs of's1~ec~ixl flood 16 hazx~rds to i ncl,~.tde ct~r•ea-s of residual ~r•~isk, ~i-~rlch~tdi-ng 17 a~~°eas that are located behil~.d levees, darns, ari,d othe~° 18 ~m,an-~m.ade str°~rct,~cres. 19 (c) ~~%Ltil'D~ITORY P ~RTICIYEITIO~~' IN 1VdTlON9L FLOOD 2O I1~'SURANCE PROGR~~7.- 21 (1) I1v rE,tiFRAL. any area, described in srr-b- 22 section (b) shall be suh~ect to the mandatory r~u~rchase 23 requirements of sections 102 and 20,E of th.e Flood 24 Disaster° Protecti~rr Act of 1973 (42 U.S.C. 4012x, 25 41of). •HR, 3121 EAS 11 1 (~) LI:VIITf1T1ON.-The nrar~datori~ ~u~rchase ~re- 2 g2~.ireme~rzt, ~u,~rader paragraph. (1) shall, have rr,o three o~r 3 effect, until the r~iappi;rr-~ of all, residual risk areas irz 4 tltie Ur-~ited Sta es that, the ~i~rector deter~rr,-fines essPn,- 5 t~ia,l 'in o'rde'r to adrrr,irvister tl~ Natio~l~al P+lood Ins~~~°- 6 once Program, us required render section 119, are in 7 the mairitenarvice phase. 8 (3) dcct~R~iT~~ YRrcL~r. In carrying or~t the 9 mandatorr~ prcrcliase requirement under pa,r°agra,ph 10 (1), the Director shall ensur°e that the price of ,flood ll ~irytisurarrce policies in ar°eas of residual risk accurately 12 reflects the level of flood p~°otectiorr, provided by arty 13 levee, da~rra, or otlu~r t12e naan-made structure in s~uch- 14 ar°ea. 15 (d) DECERTIFICATION.-Upon decertification of airy 16 levee, darer, or- n~ca,n-~rrr~a,de st~rrretu~re under- the jurisdietin~rr 17 of tltie Ar•~rray Corgi of Eng~i,neers, tl~ Corp shall im~m-ediately 18 ;providenotice to the Di.r°ector of th,e National Flood Ins~ttry•- 19 uuce Progr°am. 20 SEC. 108. PREMIUM ADJUSTMENT. 21 Section 1308 of the National Flood Insurance Act of 22 19F8 (i2 TI. S. C. X01.5) is a'me'nded b y adding at the end 23 the following: Z4 "(q) PRElVlII'~YI 1]I).1I rSTaIENT TO REFLECT C, ~'RRE~VT 25 RhSYK OF FLOOD.-Notz~~ithsta'nd~i~nq subsection (f), and •HR 3121 EAS 1 `~ J 1 ~trpo~ra co~rrtpletioryl of the updat~i~ng of rx~rz~ flood i~r~su~ra~r~ce rate 2 nzap lender th,~is Act, the Flood D-isaster P~°otectio~r~ Act of 3 1 X7:3, o~r the P+~,ood hts~u,~ra~r~ce Refo~y~nr arul Mode~•~rlizat,~ion 4 Act, of 2008, a-riy prope-~~,y located i~~~1, are area that 'is par°tici- 5 pati~f~g ~i~r~ the ~rrat,~io~rl,a,l, .Hood ir~s2t~ra~lce p~rograrr~, shal,C have 6 the risk, premi~icm rate charged , f ~r ,flood ins~l~rance o~~, s~t~ch, 7 property au?jt~tsted to ac~rt.rateli~ reflect the ctcrrent risk of 8 flood, to s~cch, property, snU9ect to a-ny other provision of this 9 Act. Any increase in the risk, p~°eyninm rate charged fo7~° 10 flood insnr~nce on an;y property that is covered by a flood 11 iiasu~ra7ice policy o~r~ the date of co7nplet~iafti of'such updati~r~g 12 or reniappi~ng that is a ~°esult of s~t~ch updcr,ting o~r reyrtap- 13 pi~r~g shall be p1l,ased i~n over a 2-,year period at the rate 14 ~ of 70 peree~r~,t per ~ea~r. 1 S "(lti) USE OF MAPS TO ESTf1BLISH REITES FOR CER- 16 T~rnr CnU~r7~tF~~~.- 17 "(1) Iw GE~~ERdL.Until, such ti,yne as th,e up- 18 dati~nq of floood i.~~ls~ua°a7l,ee rate maps ~tinde~r sect~urri 1 19 of the I+'lood 1Vlodernization Act of 2007 is completed 20 (as determined by the district e~iginee~) for all, areas 21 located 'in th,e St,. Lo~t~tiis District of the 1~Iiss~issi~p~i 22 Valley Division of the Corps of Engineers, the D~iree- 23 to~° shall not- 24 "(~1) arf~ust the eh-~r;geable preni~iunr 'r°ate for 25 ,flood er~s2~rance under this title fo~° any type or •HR 3121 EAS 13 1 class of p~rope~rt~ located ~~~~ ari area vr~i that Dis- 2 tT"LCt; lr,'i!d 3 "(B) r•equ~ire the pztirchase of,flood ~eryts~~c~ra~lce 4 for a~r~,ti~ tgpe or class of propei~t,~~ located i.n ~r,~r~, 5 area i.~rt that D~i-str~,ct ~r~i:ot su~jeet to such purchase 6 re~~i~.ire~m,ent prtior to th,e ~~tipdati~iq uf' s~i~ch ~~tiu,- 7 tiunal,flood ~inst~rance pr~~~rum rate map. 8 "(~~ RULE (IF CO~~'b'TR~%CTIU~V.-fo-r p~ttrposes of 9 this s2~bsectaon, tltie term `area' does not ~anclude any 10 area (or subd~ivisian the?°eof) that h,as chosen not to 11 participate 2n the ,flood tinstic-°ar~ee prograryn u~rider th~~s 12 title as of the date qf' enact~rrtient of this subsecttiori. ". 13 SEC. I09. STATE CHARTERED FINANCIAL INSTITUTIONS. 14 Sects-o~ra 1.30.5(c) of the Nattio~nal, flood Insu~rar~~ce llct 15 of 29'8 (~~ U.S.C. 4012(c)) is an~er~~ded- 16 (1) ~z~r~ para,,g7-aph (1), by str•~,kti~nq `; a~rad" an,d 17 ~i;rtisert2,rtig a seni,2colon,; 18 (.~) in, pal°agraph (,2), by st7°7,king the per•~,od at 19 the end acid inserttin~~ `; and' ; and 20 (3) b?~ add2n~~ ut, the end t,11,e followin~~: 21 "(.3) given satisfacto~rz> ass~t~rance that, by Dec~m- 22 ber 31, :,008, lenrz~eng instit~t~tions chartered ~2~ a 23 State, and not tinsnred b;y the federal Deposit Ins2tir- 24 ar~ce C.o~r•po~°at~eon, shall be s~uUject to recpdat~io~ris b~~ 25 that State that are cor~siste~rat wtith the ~regni~renients •HR 3121 EAS 14 1 of sectio~rti 102 of the Flood Disaster P~rotectio~r~ pct of 2 191:3 (42 U.~ti~.C,. 4012x).". 3 SEC. IZO. ENFORCEMENT. 4 Sectio~ra 102(f)(.5) of the Flood Disaste7~ Protection 11ct, 5 of 19%3 (42 U.S.C. 4012x(f)(5)) is a~m,eraded- 6 (1) in th.e ,first sertitence, vii stri-king "350" ar~~d 7 i,nsertiny "~2, 000' ; and 8 (2) by striking t,1~e second sentence. 9 SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS. 10 (a) Iw GE~'~ERf1L.-Section 102(4) of th,e 1+'lood Dis- 11 aster Protection ~~ct o f 19 ~3 (42 U.S.C. 4012a (d)) is 12 amended- 13 (1) b~ an~ertiding para,~~°aph (1) to read as fol- 14 lows: 15 "(1) R~~~~c~1:~rEr~ LEw~rlvr r~wsTrTtrTZOw~s~.- 16 "(11~ P+F.I)F.RAI. F.~~%TITTF.~S~ RF.~S~Pn.~V~~IRI,F. Fl)R 17 LENDINU REGLILdTlON~~.-Each Federal eY1-l2ty 18 for lendi,~n,,q 'r°egitilat~io~n (crftey° consultxtioji. and co- 19 ord~i~rtatior~ ~tvtith t1~ Federal Firylanci-xl, Institn- 20 buns E.xxcmination Co~unctil) shill,, by re~~t~lation, 21 dig°ect tltiat any ~rem~iums and ,fees for flood i n- 22 s2crance under the National, I+'lood Insu~f°ance ~lct 23 of 196?, on and property for wl2,ich a loan has 24 bee~rti made ,fo'r acq'uisit'ion or corlstr~cction p2cr•- 25 doses, sltiall be laid to the rrzor"tgage lender; with •HR 3121 EAS 1~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the sarr-e f~°e~2.~ency as pa~~r-e~r~-ts o~rz the loarti a7°e rr-ade, ti»° the dui°at,~o~r-, of the boa~r~. Upo~r-. ~°eee~,pt of a,~r-:~y p~--e~r~-ti~irr~-s -rr• fees, tltie lender sh,abl depos~,t such, p~°e~~n~.it~rns and fees ~ir- ar~-~ escrow acco~r~-,t ou beb-,alf of the bor--°o~we7°. (Ip~rr- ~°ece,~,pt, of a, ---once .from the D~.rector or the pror~der of the flood ~in- s~icrance tbtiat tins~urance premti~tims are due, the remaining balance of an escrow account, sh,a,bl, be paid, to the provider of tltie,flood ti~nsurance. "(B~ ~,S~Z~TE ENTITIES RE~SPON~SIBLE FOR LE1'~DING REGLZ~~TIO~'~'S.-In o'rde'r to cont~n2ce to pa~~t~reipate i~j~ the flood ir1-s~tirance proy~-°an-, each State shall direct that its er-ttity or agency ~-U~ith prt,~ruzry -°esponsibi~btit~y for the sz-,pe~rv~isio~r-- of le~r-d2ng inst~,t~-rtions -i,n that ~~~babe requ2~-•e that, ~renai-~t~rr-s a~r-d,.fees for flood ir-surance u~~der• tb~,e Nat'io'nal, Flood Ins~-tira~-~ce pct of 1)68, o~-z an~~ trrope7~tJ for which, a loan ha-s been made f~~r ac- ct~-~isition or construction p~t~~~~uses shall be paid to th,e ~mu7°tga:ge bender, with the same frec~~uencz~ as pa,yme~nts o~n the loan are made, fo~° the dicr•a- tion of the boa~n. Upon receipt of ang premitc~ns or fees, the lPr-der shall depos~~t such p~f°emiu~rras arub ,fees ir~a a`n escrow accou~r-t ~n behalf' of the bo7°ro~u~er. Upon r°eceipt of a nonce ,f~r•om s2reh •HR 3121 EAS 16 1 State e~ltity or age~r~cy, the Director, o~r the p~r~•o- 2 vdcr qf' the flood ~i,r~s~~,~r~~rice that ~i,rzsura~rrce ~~°e- 3 ~rraiu~rns a7•e due, the ~i•e~rt~airi~ir~ig hala~nce of ct~r~ Fs- 4 crow accou~~r,t shall, he paid to the p~ro2+~ide~~° of tltie 5 .Hood ir1sl.~ra,rtce.'; ar~d 6 (,~) vy adding at the end the,followin,g: 7 "(6) iVOTICE UPON L0~% TERh1IN~TlON.-Upon 8 f inu,l t~c~yment, of the mortyuge, u- rey2~lcrte~~ lendin~~ 9 ~nstit,2~t~ion sha,l,1, provide not,~ice to the policyholder 10 that insurance covey°age nay cease 'with such f anal 11 payncent. The regulated lending i~rtistitut-ion sluxll also 12 provide di-reetio~ri, as to how th,e h,onaeo~r~~ne7° nia;~~ eo~~a- 13 ti~rti~2tie .flood iras~ze~°arace coverage after the life of the 14 loan. ". 15 (h) I~PPLIC4BILITY.-The a~~rae~ndnient, grade lry s~i~,h- 16 section, (a)(1) shall a-pply to any r~~or-tgage outstandi.rlg or 17 e~ri-tei°ed ir~ato o~n o~y• q-fter~ the exp~iratio~r~, of tl2e ~-~~ea~r peg°~i,od 18 begi~r~,n,ing o~rti the date of e~n~actmen,t of this title. 19 SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS. 20 (a) IN GE~~ER~L.-The ~5~ecretary of the Treas~i~ry re- 21 linquishes the ~~~~ht to any repayment of amounts dice f'~°om 22 th,e Director in connection ~zv~ith the exery•eise of the authority 23 vested to the, Director to bo~•row s2~ch s2~7ns ~ttinder section 24 130,9 of the ~~'atio~r~al I+'lood Ir~sura~~ce ~~ct of 1 J68 (~,~ 25 U.S.C. 4016), to the extent s2r,ch, bor rowed su.n~s ~ic~ere used •HR, 3121 EAS 17 1 to fund the pag~rne~rlt of flood ~ins~u~ra-rice clatinzs tt,r~~de~r t11e 2 Na,t~,onal I+'lood Insura~rtce P~r~ograrrz f~~r any dan~~ge to or 3 loss of ~r-o~er~tg ~•esultting.f~rorn the h~r~.,r.~rarnes of'2005. 4 (b) CFRTII'I(~~TION.-The debt for;~i,2+er~ess deserthed 5 tt~r~de~r subsection (a) sluxll o~nl,~~ tah:e, effect ?.f' the Di,recto~r 6 certtifies to the Secretarg of Treas~~irg that all o~ethori,zed ~re- 7 so~t~rces or f~Unds available to the Di7~ectory• to overate the 1~'a- 8 t,iona,l flood Ins~~rance Program- 9 (1) have been othe7~~v2se obligated to pag claims 10 u~nde7° the National 1+'lood Insurance Program; and 11 (~) are not othe~~wise avo~lable to make pa~>- 12 Wien-ts to the Secreta~°g on a7~g o~utsta~rtiding rylotes or 13 obhgatio~rls 'issued b,g th.e D~ireeto7° and held b~g the 14 ~~~'ecretar~~. 15 (c~ DECREASE IN BORh'DU7n'(~ AL'THORITI'.-The,f2~j°st 16 sente~nee of subset°t2,nn (a) nf' seet~i,nn 130.9 of the ~~'atio~7al 17 Flood Insurance Act of 1968 (42 LT. S. C. 4016(a,)) is amer~d- 18 ed bg strikin.,q `; except that, throi.~gh Septe~mbe~r 30, 2008, 19 clause (,~) of this sentence shall, be applied by s~r.~bstit~uting 20 `~~ ~0, i %.5, D00, 000', fory~ `$1, 500, 000, 000", 2 I SEC. ZI3. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE 22 NATIONAL FLOOD INSURANCE PROGRAM. 23 Section 131 > ~~f the National I+'lood Insu7-ante 11ct of 24 196'8 (!`? U.S.C. 4019) is arnended- •HR, 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1~ (1) by st~rikti~rag "The Director 'is" avid vrvsert~i~r~g th.e fbllo~tv2-ng: "(a) Iw GENER~IL.-The Director is'; and (,~) by add ir~,g at the e~r~d the , follo~wir~,g: "(b) Mlwt.titu.til ~lw~-~~1L D~~crc1~11st,E.- "(1) PRE-F'IRIl PROPERTIES.-For ang str~t~ctlw°e tvh~ich, is covered b~~ flood ins~ara~nee vtnder this title, and arti u.~hich constrltiction or sv~bstantial, i~mpro~L+e- ment occ2w°7•ed, on or before December 31, 1914, ov° be- fore the effective date of an vn~etia-l flood ~insvUra-nce rate naap p2Ublished b~~ the Div°ector ivrider section 1360 .for the area irti u~ltiich such, str~,cct2~,~re is L<vcated, the niinirravvrra an~nv~.al dedirct~ble for da~rr2~age to such stru,ctu~re shall be- "(1l) X1,.500, 'if the ,flood, ins2v~ra~nce coverage fov~• such str-ivctu~r-e covers loss qf; o~r ~hltsical daryri- age to, such st~ricctvvv°e in an amount, eq~~al, to or less tltiun X100,000; aryid "(B) $2, 000, i f' the , f hood ins~crance coverage fur sv~ch stv°acture covers loss of; or tvh~~sical dam- age to, sv~clti structure i~n an a~mo~zUnt greater t1~.an X100, ooo. "(,`?~ PU~S'T-FIRM PRUYERTIES.-For a~n2~ st7~2cc- t~u~r•e 2e~liech ~is cove~r•ed by ,flood insuv°ance ~ir,nder this title, a~rld on u~h,~ech constructiovi or s~u,bstant~a~l ~ij-e- •HR 3121 EAS 19 1 prower--ent occur-°ed after Decen-~er 31, 194, o~r ~ifte~r 2 the effective date of an i~t~i,ti,al, .tlonrL ~iy-s2cra~r~ce 'rate 3 ~riap publisl-ed h~g the Di~~ecto~r unde7~• sectio~r- 1360 fo-• 4 the area i-- a>h.~ich st~.ch st,-°uct-t.re is Located, th,e ~-rr,in,- 5 ~irri~u~rn a~r-~r-~i-al, ded2-ctible for da~rr-age to such str7-ct,~tti~re 6 shall be- 7 "(d) ~Si~0, if the .flood i~ns~itirance coverage 8 for such- str--ct2-re covers loss of,' or ph,2~stica-L, dam,- 9 age to, such struct,~ure in an cr-mount, equal, to or 10 less than $100, 000; and 11 "(B) $1, 000, ~ f' tlw flood ~ins2crance coverage 12 for such st~-~~cture covers Loss of, or phys~ca~l dan~- 13 age to, sacch st~ructu-re ire an an-o~u,nt greater t11a~u 14 ~10q 000. ". 1 S SEC. I14. CONSIDERATIONS IN DETERMINING CHARGEABLE I fi PREMIUM RATES. 17 Section 1308 of the Nation-al Flood Ir-surance ~lct of 18 1J68 (!2 U.S.C. ~015(U)) ~is arnended 19 (1) in s~icbsect-ion (a), by striki-ng ", rafter cu7-- 20 s~idtatiun with" and al,L that f~l,Lows th,roz-gh "hid reg~u- 21 lation" and inserting "p'resc-°ibe, ~~,fte-° providing no- 22 tice"; 23 (,~) ~in suUsection (t~)- 24 (~~) erz paragraph (1), b~ st~-~i~;~i~-ig the period 25 at the end and i~r-serti7-g a serraieolor-; •HR, 3121 EAS u~ 1 (B) ~irti paragraph (~), vy strik~ny the 2 co~m~~ria at, the e~rtid a~rtid ~i~rtsertin.y ~t semi-icolo~r~; 3 (C) ija pa~r•agraph, (~), bz~ st-ri~~.rlg `; a~~id" 4 a-~r~,d ~i-~nser~t~,ng a se~ria~i,colori; 5 (D) ~irr. paragraph (4), Uy st~~°i.ki,rzg the pe- 6 riod and i,nserti;ny `; a~n,d'; and 7 (E) by addi7~tiy at, the e~rid the fullawin~~: 8 "(5) adequate, on the basis qf' accepted actuar~ual 9 principles, to cover th.e a-veraye h,istor~ical, Loss year ob- 10 l~igations ~~nc2cr7°ed by the National I+'lood Insurance 11 Fu~r~d.' ; a~rtid 12 (3) by addir~zq at the e~r~d tltie following: 13 "(Ii) RULE of Co1~ ~5'Th LlcTlo~~ 1+'o r° purposes ~~ f this 14 sectio~rti, th.e ealc~tclatio~i of an `average historical loss year'- 15 "(1) inclu-des catastrophic loss years; a~n,d 16 "(2) shall he cnrri~puted in accordance ~tv~i,th geri- 17 erally accepted actua~~°zal p~~°inciples. ". L S SEC. 115. RESERVE FUND. 19 Chapter I uf' the Natio~rial Flood Insu~°ance flct of 1063 20 (~2 U.b~.C. 4011 et seq.) tis amended by inserting ctf'ter sec- 21 Lion 1310 the following: 22 "SEC. 1310A. RESERVE FUND. 23 "(a) EST~PLISH~IENT OF RFSFRVE FIND.-In ca~~°- 24 ry~ertiq out tltie ,flood insura'rlee pro~~°am authorized by this 25 chaptei; the Director shall establish tin tltie Treasu~°~~ qf' th,e •HR 3121 EAS J 1 1 U~-ited States a Nataonal I+'lood Ir-su~rar-ce Rese~r•ve Fur-d 2 (in this section r•~fei°red to as th.e `Reserve Fu~r-rl') ~-c~h~ach. 3 shall- 4 "(1) be a~rz acco~u~r~t, se~r~~-°ate ,t~r~o~rr- a~f-~i~ other a,~~- 5 counts or fir-ds available to the D~i-7°ecto~r; a~r-d 6 "(,~) be a~-~ccilab~e .for m,eetinq the ex•t~ecte-~ , f i-t-cre 7 obliyatiuns of the,flood ~i~ns~-cra~y-ce ~~~•ogram. 8 "(b) RESERVE R 42'10.-Suh ject, to the ~ha-se-in re- 9 quirements under subsection (d), the Rese~°ve I+'z-,nd shall, 10 maintain a balance equal to- ll "(1) 1 pe~-•certit -~f the s2tiryr- of the total potential 12 loss exposure of all o~rtsta,r-dmq flood ir-surar-ce ~ol~i- 13 cies in .force ~i~n th,e prior ,fiscal year; or 14 "(~) s~u°h 1~-igher per°cer~-tage as the Director deter°- 15 mines to be a~p~rnp~riate, taking i~-ito cons~ideratim-. 16 any c-i~rc-tirr-stance that rynay raise a, sig~izifica7-t 7•~isk qf" 17 sicbstantial , f'nture losses to the Rese~rhe I'-c~--d. 18 "(c) M.~r1v1~E1~~~~cE of RFSFRr~F R~~rro.- 19 "(1) Iw rE~~'Ex~1z,.-'L'he Director shall have th,e 20 a~nthority to establish, increase, 07° decrease t,1i.e 21 amount ~f aggregate ann2cal -insurance t~~r°em~i~ums to 22 be collected,fo~r any fiscal ;-~ear necessary- 23 "(A) to ~rnaintain th,e reserve ~°atio requi~-°ed 24 under st--bsectio7a (b); artd •HR 3121 EAS )) 1 "(B) to achieve s~-ch 'rese'rve ratio, if'the ac- t tual, ba-Lance nf's2-ch. reserve i-s helo~-a~ th.e -crr-nu~nt 3 ~-•equi,-•ed -~~-ide-• s2thsection (b). 4 "('~) Cow~~~InE~~TroN.~~.-In exe,~°cising the a-t- 5 thorit,~~ g~ra~--ted tcnde~r ~r~a~-~•ag-raph (1), th,e Dieectn-° 6 shall co~nsidery= 7 "(A) the erected operating ex~e7~-ses qf' tl-e 8 Reser2±e Fund,; 9 "(L) the insurance loss expenditures under 10 the flood insu-°anee prog~°a~-n; 11 "(C) a~r-y ~~--vestnzent income ge~r-e~rated 12 2vrader the,flood, iry-s~~~rary-ee prograrm; and 13 "(D) anti otl2er factor that the Directo~r° de- 14 ter~mi-r-es appropriate. 15 "(.3) LI~ti1IT~TlOtirs.-In e:rerc~iszng the n;tr,t,1-orit~ 16 g~ra~nted --nder parag~-•aph, (2), tltie Di,recto-• shall he 17 s-tihject to all, otltier pro~t;+isi,o~rrs qf' this 1ict, i~-chi~d~i,r~g 18 any ~nry•ovisions gelatin-~~ to chargeable pre~m~i~u~rn rates 19 or annual, increases of's~uch rates. (d PHASE-Lh E(~UIRE~bIENTb'.- e ~ tiase-'in re- 20 " 21 quirements under this subsection are as follows: 22 "(1) IN GEnER~.-I~e~inni~ng in fiscal ~igea-r 23 2008 end not ending until th,e fiscal gea-° i~n which 24 tltie ratio -°e~~u~ired under subsection (b) is achieved, i~rt 25 each such fiscal i~ea~-° tl-e D~irecto7° shall dace ~in the •HR, 3121 EAS 23 1 Rese-°we F'u~r-d ~-a a~-raou~-t equal to ~-~-ot less than 7.~ 2 yerce~nt, nf' the reser°ve ~-~at-in -°eq~-ei~red ~u~nder s~l-.bsect~,nr- 3 n~~. 4 "('?) 11~1o1.:vr ~~ 1TI,~FIEn. As soon, as the ratio 5 req-U~i~-~•ed u~r-der subsection, (b) is achieved, a--d except 6 as provided ~i.n paragruph, (3), the Director shall, n,ot 7 be req~t~tii,red to set aside any -xmounts for the Rese7~e 8 Fund,. 9 "(3) EICEPTION. If' at any t~~me afte~-° the ratio 10 required under subsection (b) is achieved, the Reserve 11 Fury~d falls below th-e requi-°ed, ,~°at~io under subsection 12 (b), the Di-°ect~rr shall place in the Reserve Fur~id for 13 that , ftiscal year a~~r, a~r--o2rnt equal, to not less than ~. 14 percent of th.e ~rese~rwe ~rat~i,n required under subsecti-n~r2 15 (b). 16 "(e) LIaTIT.9TI~).'~' nN RF,~tiF.RY'F, RATIC).-l~n ar-y given 17 ,fiscal year, if'tltie Directo~-• dete-°na~r-es that the reserve ratio 18 req~-vered ~u~r-de~r subsecti~rn, (b) cannot be acl-ieved, the Di-•ec- 19 for shall s~i~b~mit a -°e;oo-°t to Congress that- 20 "(1) describes a~-tid details the specific concer-is of 21 th,e Di~-°ector regard~ti-tiq such conseq-uences; 22 "(~) demanstra,tes hn2v such consequences would 23 Jia-~rn th,e long-term f ~ananeial soundness -~ f the . f lnod 24 ~~~nsu~r•ance prng~-~•a~rr-; a~-d •HR 3121 EAS ~4 1 "(3) ~tradicates the rnaxi~rnu~~r~ attair~iable rese7°ve 2 rat,~i-o , fo~° that pa,r-ticular, fiscn,l, ~en~r. ". 3 SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY. 4 Sect~io~i. 1 BUJ ~~ f' t1~tie l~ratiori al P+ looc~ Ins~~~°a~nee Act o f 5 1JG'8 (42 IT. S. C. ~01Ei) ~i-s ariiended by add~i,~n-g at the end 6 the,follo~w~i,ng: 7 "(c.) An;1~,funds borrowed by the Directorunder the a~u- 8 thor~ty estabZ~ished ~i~n subsection (a,) shall include a sched~tcle 9 for repayment of such amounts ~uh~ich shall, be transm~atted 10 to the- 11 "(1) Secretary of the T~°easicr~y; 12 "(~) Carnnaittee on Ba.nkinq, I~~~using, arLd 13 Urban Affatirs of the Senate; and 14 "(~~) Cona~rrrittee nn I'inrcn,c~i,al, Ser~t~ices ~f the 15 House gf'Represe~ntatiwes. 16 "(d) Irz add~~tion to the regtci,~°enae~n,t ttirider stcbsecti-o~f~a 17 (c), n co~nrtiection ~wzth a~tiy , fuytids bo-mowed b~ tltie D~zrecto~y° 18 ~~cnder the atcth,ority established i,~~- sr~bsecti.on (a), the Direc- 19 tor, beginning 6 months after the date on tvh,ich such, bor- 20 ~°owed funds are issued, and continuing every F months 21 they°egfter ~cntil, such borrowed, funds a~~~e fulby y°epaid, shall 22 submit a report on th.e progress of such repayment to th,e- 23 "(1) Secretary of t11-e Treasacry; 24 "(~) Committee on Ban~;i~zg, Hotcsing, ~r~d 25 U~°ban ~lffai~y°s gf'the Senate; and •HR. 3121 EAS .~ J 1 "(.3) Co~r7i~rrrittee o~n I'~iraa~n,cial Services ~~f the 2 Douse of Representatives. ". 3 SEC. 117. P-AYMENT OF CONDOMINIUM CLAIMS. 4 Seeti,art- 1312 of t/tie Nati.o~nal, Flood In-s~~s°a~n,ce Act nf' 5 1J68 (42 U.S.C.. ~U1J), as arn,er~-ded by secti--~rra 113, z-s fitr- 6 then amended b~~ adding at tltie en,d the, followi~ag: 7 "~('~ Yr1Y~~J.+'L~'Z' OF CL 9IJI~' TO CO1~DO1i1NI U:~7 ON L"V- 8 ERS.-Tltie Director mag not deny pa.~~ment, fbr an~~ dumage 9 to or loss of prope~~~tg which, ~is covered, by flood i7tisurance 10 to condominiuryn owne~•s who purchased such ,flood insur- 11 mace separate and apary~t from the flood insurance purchased 12 b;~ the co~~ldonainiuryn association i~rz ivhu°h, such, owner is a 13 nae~rnber, based, solely o~r i~rti ang part, on the flood ,ti~,~s-ura~2ce 14 coverage of td~.e eondo~yn,i,r~,iunr, association. o~r othe7•s on, the 15 overall propertg o~iv~ned b,~~ the condomi~n.i~urn associ-atiorl. 16 Not~withsta~nding an,~J ~regtUlati,ons, ~~ttilns, o~° restri.ctions es- 17 tablished b~~ t,1~~e Director rela,tir~,,g to appeals acrd ,fil~i,ng 18 deadlines, the Director shall, ens~t~re that th.e req~t~~ire~rnents 19 of this s~r.~bsection a7°e met, 'with respect to ang claims fbr 20 damages result~in~ f~°om flooding in 2005 and `,006'.". Z 1 SEC. I18. TECHNICAL MAPPING ADVISORY COUNCIL. 22 (a) FSTA~I,ISxti1F~'~T.-There is established a council, 23 to be known as t11,e Technical Mapping Advisor~~ Council 24 (irti this sect~ian refery•ed to as the "Council"). ZS (b~ ~ti1E~tiIEER~~~HIP.- •HR, 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 f~ (1) Iv GE.I%ER~~L.-The Conrlcil shall consist qf. the D~ir°ector, or th-e des~ig~rl,ee thereof; and 1,~ addi,- t,~ional r~nornbers to be appoi,r~,ted b,~ the Di~rec~to7- or• t6ie des~ig~rt-ee gf'the D~i,j°ector, rvho shall be- (~l) the Iir~de~r Secreta~r~~ of Conl,rrie~r-ce for. Oeeams and Atmosphere (or the designee tlreregf); (B) u, -member- of ~.~ recognized prgfessio~ral survegting association o~r or;gan~~zation (C) a member of a ~°eeognized p'rof'essional mapping assoctiation or or;gan~izat~on; (D) a, mernbe~r of a recognized pi°gfessional e~ri.g~irleer~~ng a-ssoc~zattion or o~rgarzization; (E) a rrae~mber of a 'recognized prgfessio~nal ~~-ssociatiorl, o~° or;gan2.zat~ion. rep~rese~ntting .flood hazard deter~ni,i~nation fir°n~s; (F) a 7°~presPr~tative of th-e Uni-ted States Geological Surve~~; (G) a represPntatiwe of a recognized prufes- sional, association or or;gantization representing Sta-te geographic 'information; (H) a representative qf' State nationa-l ,flood insrc7°ance coordenation gffices; (I) a ~represer~tatiwe of the Corgis of F~r~g~i- rte~rs, •HR 3121 EAS 27 1 (J) th,e Secretary qf' the Inter~io~r (or the des- 2 y~r-ee thereof'); 3 (K) the Secreta~-•y nf'A,q~r•icult,2c~-•e (o'r the des- 4 ig~r~~ ee th,e~-°eq f); 5 (L) a rr-enzber qf' a -°ecogry~-tized -°eg~or~al..tlood 6 and storm ~-~ater manageme7-t orga7~-~.zat-ion; 7 (lll) a re~resentat2ve of a State age~r-cy that 8 h.as entered unto a coog~erating techwica-l 2~ar~t~ner- 9 ship 2c~ith the Director and has demonstrate-~ tl-,e 10 capability to prod~~ce ,flood ~ens2crance 7°ate, -naps; 11 a~r-d 12 (i'V) a -•ep~resentattive -~f a local yoverr~~r-ent 13 agency that has enter°ed ~i~r-to a cooperat2~r-g tech- 14 nical pa~r-t~r-ership ~w~ith the Di.r°ecto~r and has 15 derr~n~r-strated ttze capahil~r,ty to 2~~rnd~-ce .flood in- 16 swear-ce ~-°ate rr+a~s. 17 (.~) QUILIF'w~1Tlow~~.-IVlerrabe-s qf' tl2,e Co-cnc~i,l 18 shall, be a~npo~i,nted based on thei~r° dPn~-onstrated ~no~wl- 19 edge an,d competence rega~°din;q s~~~rveyi,ng, ca~~tog- 20 raph?~, remote sensing, ~~eographic information s-~s- 21 toms, or th,e technical aspects of prepa~r~ing a,nd ~-USing 22 ,flood insurance rate maps. 23 (c) I)t%TIE~S.-The Co~2tncil shah 24 (1) reeo~rr-~rte~r-d to the Director h,o2a to irr-p~rowe i~ra 25 a cost-e f fect~ive ~rnar-rle~r the- •HR 3121 EAS )~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (~~) accuracy, ger-e~ral ~~~ual2ty, ease ref --se, ar-d distrib~t~tin~r- grid d~isse~n~z~i,~nat~,or- of fl,~-od 2~n- sura~r-ce -•ate snaps ~-~r-d r•~i-sk data; a~r~,d (B) pe~-~orrrutnce, rr-etr~i,cs ~r-d ~rr-ilestor-es -•e- qui~r•ed to Pffect~ively ar-,d ~ff-i,cie~n,tly rr-ap flood risk, areas i,n t11,e Uytiited States; (~) recom~n,end to t,1ie Director ~r-aE~pti~-~~ stand- ards and gu~idebines for- (~1) flood insurance rate mays; end (B) data accuracy, data quality, data cur- re'ncy, ccr-d data el~igibil~ity; (.3) ~°eco~rrr-ne-id to the Director hour to n-a~i-ita~i~n ~n ara o-~igoi~ng basis ,flood insura~-~-ce rate ~n-aps and ,flood risk ~de~nt~-ficatz~n; (~) reco~n-rr-e~r-d procedures ,fo-• delegating ~ry-ap- ping act-ivit~ies to State c~nd local, n-.a~nying pa,rtr-ers; (5) ~reco~r»n-,er-d to the Di7°ecto~-° and otlcer Fede~raG agenc~,es ~~articiyctt~,n.q to the Co~.t~ncil- (d) methods for improw2ng interagency -~nd ~~nte~.governmcnta,l coord'i~n,ation on flood ma7~- p~inq and flood -risk, determination; and (B) a ,ft-n-ting strategy to leverage -znd co- o~-°d~nate budgets ar-d e~per-dit~ures across Federal agencies; a~ul •HR 3121 EAS )~ 1 (6) s2eb~~rtiat an a~nrz~ual report to the D~a~•eeto~r that 2 co~r~~ta~i~ns- 3 (A) a deser•ipti-on of tl2e activities of the 4 Co~iA.r~c~i-l,; 5 (1~) an evattiat~aor~ of th.e scatz~s and pe~~- 6 formance of flood ins7crunce rate ~n,aps ~xnd n~aup- 7 pine activities to revise and update ,flood ins~t~r- 8 a,nce rate maps, as reg2~~ared -under section 119; 9 a-nd 10 (C) a su~nntia~°~~ of 7~eco7nmendat-ions made 11 by tltie Co~icrtcil to the D~~recto~~°. 1 Z (d~ FL%T L'RE Cl)NDITIOl\'S RISK ASSEAS b' VIE~VI' Al's ID 13 ~IODELINC~ REPORT.- 14 (1) Lv GEIER~~L.-The Coz~ncil, shrill co-~s~a~,lt 15 ~tei,th, scientists a~r~d technical, e:rperts, other Fede~rrd 16 ageri,cies, States, and local conina2triita-es to- 17 (tl) develop ~reconiryaei~datio~r~s ova h,o~u~ to 18 (i) e~j~sure that ,flood insrt~r°ance ~°ate 19 -maps incorporate th,e best available cLamute 20 science to assess flood risks; and 21 (ii) ens2Ure, that the Federal, Emer~enc,~ 22 1V7anagement Age~rtic~~ ~lcses the best ava~alable 23 jnetll,odolog9 to consider the impact of= 24 (I) the rase 'arc th,e sea level; a~rld •HR 3121 EAS <3 0 1 (II) fictir-re developn~ery~t ors .flood 2 'risk,; and 3 (I3) ~- of later tha~rz 1 ~~ea~r c~ fte~r the ~hr,te n f 4 er~ac°t~r~~e~ri,t of thtis title, prepare wry-tteri, ~j°ec- 5 orn,rrae~ndatioras ire. a ,tut~~.,j°e co~r~,di,ti,oris r--'slc assess- 6 meat a~n.d modeling report a~tid to s~t~bmit, s~~ceh 7 recommendations to the Director. g ~~~ REb'PO~Vb'IBILIl~' OF THE DIRECTOR.-The 9 D~ireetor, as part, of the ongoing program to ~y°evie~zv 10 and update National blood Insurance P~°ograrn rate ll maps tinder section 119, shall 'inco'rporate ary-y fititure 12 ~°isk assessrne~rit s2~b~nz~tted icnde~r p~ra~raph (1)(B) ~~~iz 13 any such revision or r~-pdate. 14 (e) CHEIIRPERSON.-Tire rrae~rrrbere of th.e Co~t~nci,l shall 15 elect 1 rraen~.her to serve as th,e chairperson, nf' th.e Cmrrlril 16 (in #7,s secturn, refe~rr•ed to as tltie "Chairperson"). 17 (f) COORDI~ti~1TI0i~'.-To en-sure that the Cozt~n~c~i,l's rec- 18 ona~rraeradations are consistent, to tl~ rn,ax~irrrtcm. extent p~j~ac- 19 ticable, with ~nat~~orr,al, digital, spatial data collection and 20 ~manuge~ment standards, the Chairperson shall cons~tclt, with 21 the Chairperson of the I+'ederal Geographic Data Committee 22 (established pursuant to O111B Circular A-I h). 23 (g) C~~~z~E:~~~S,ITION.-1~7embers of the Council shall re- 24 ceive Rio additional compensation, b;~ reason of'the~ir ser°irice 25 on the Council. •HR 3121 EAS ~~ 1 ~ n2~ 112EETI:~rUS avr~ ~1cTlO v~~.- 2 (1) IN GE:VER~L.-l~.e Cnz~~nc~il shall, ~rrreet -runt 3 less , f ~•equentl y than tu~~ice each year at th,e r~eg~uest o f' 4 the Clrai~rpe7~sori, or a ~n~aajo~rity of its rr~,errrbers, and 5 nay ta6,e act,~io~n by a vote of the rraajor~ity of the n~,errt- 6 be7~s. 7 (~) IwITIAL d1EETZNO.-The Director, or a person 8 designated by the Directory, shall rec~~uest and coor~~~- 9 Hate th,e in~atial meeting of the Co2cneil,. 10 (i) OFFIC,ERS.-The Clza~i~°person nzay appaant qff-icers 11 to assist in car~;~i~ng out the duties of the Council u~rrde~r 12 szcbsectiorr (c). 13 (j) b~TaFF.- 14 ~ (1) ~~T~1F'F OF FEIVIA.-Upon the ~regnest, nf' the 15 Chairperson, the D'i'rector rri-ay detail,, nn a ~r1mi- 16 ~rei.n~btcrsable basis, pe~r•sonnel of the Fede~1•a,l E~-ner•- 17 gency Managerrz,ent ~1ge~i,cy to assist the Co~~nci,l, in 18 carrying orct its d~~ties. I9 (,'3) b~T~FF OF OTHER FEDERI~~L ~(rENCIES.- 20 L7pon regitiest of the Ch,air~person, any otl~r Fede~~°al 21 agency that ~is a member qf' the Co~rtincil, m,ay detail, 22 on a non-reinibu~°sable ba-sis, personnel to assist the 23 Cou-nail in earr•~~ing out its duties. 24 (k) P0~4EK~5'.-In ca~rrl~i-rig o~itit this section, the C,o2c~n- 25 cil niay hold hearirtigs, r~•eceive evidence acid assistance, ~r°o- •Hlt 3121 EAS ~~ ~~ 1 vide i~-zfo-~ruzttio~n~, czf-d co~--d-cct research, as 'it co~-~~-s~iders a-p- 2 prop'riate. 3 (l) REPORT TO CO\rGRES~S.-The Di,~•ect-rr•, o~n, rx~ri, -~~-a- 4 -~-ua1, basis, shall ~repo~rt to tltie Co~n-rr-ittee orz I3a~»1ri,r-g, 5 Ilot~sr-g, a~rzd L'rba~--. elf fairs of the Se~rcate, th.e (~o~ri-rr-~i,ttee 6 un Financial Services of the Ho-tse, of Representatives, a~n,d 7 the Office of Mana~~ement, and B~-td~~et, on the- 8 (1) recommendations made by the Council,; and 9 (,~) actions taken by tltie Federal Eme-°gencl~ 10 ~blanagement ~l,~e~ncy to address such reco7nynenda- 11 t~ioras to ivr-prove flood insura,~~-ce ra-te maps a7-d flood 12 risk data. 13 SEC. 119. NATIONAL FLOOD MAPPING PROGRAM. 14 (a) REtilET-vl~r~~, UPn~Tlw~~, ~11~v .'17~~wT~~1~1~~~~ 15 ~'~~AP~s.-Th.e Director, i;~rti coo~rd~ination ~-,vith, th-e Technical 16 Ma~~pi,~nq Adviso~i°y Council, established, uncle-- section-, 118, 17 shall estabLesh a-~ a-2:go~ing p7°o~ran-, unde~-° u~Iti~ich the D~i~rec- 18 for shall, review, update, ar-d maintain Natinf-,al, I+'lood I~n- 19 s~i~rance Program cute Wraps ~i,n accordance with t,1ii-s secti--o~-,. 20 (b) 1V1~~Y1~~ r.- 21 (1) h` GE~'ER~1L.-In carr.)~inq out the pr-~q~°a~m 22 established, under subsection (a), the Di7•ector shah 23 (~l) identif j, review, ~-tipdate, maintain, and 24 p~-tiblislti National P+lood Ins2~ranee Program rate 25 r-uzps ~u~ith respect to- •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 33 (i) all areas located w~ith~cr~ the 100- near . f lno~~pla~i,~r~; (ii) all ar•ecrs located ~a 2th~i,~rti the .500- pea-r.tloo~~plai,n; (i.~i,) ai°ects of ~r•es~ld,~t~al rlsl~ that have nut previutcsl~ been ident?.fled, in,cl«din~ areas thu,t are, protected levees, clams, a~~ad other man-made str2cct2cres; and (~iv) areas that could be in~tinda,ted, as a result of the failu~°e of a levee, darn, or other ~rna,ri-made st~ructu~°e; (v) the level of p~°otection, provided hz~ ~rnaii-made strt~ctu~r°es. (B) establish or ~rpdate .flood-risk, zone drxta art all s~iu~h area-s, cr,rid, ~rrtiake esti~rri,ates w~,tlL re- spect to the rates of probahle,fload caa~<sed loss,for tltie war~r'o~.~s .flood, risk zo~ri,es for each suclti area; and (C) use,, irti identifyir~,y, revie~win~~, ~~tipdatiny, ma~intaini~ng, or ~icbl ~sh,i~nq a-ny 1~'ational, I+'lood Insurance Program rate map requi~f~ed z~nde~° this section or ~ic7ader the ~'Vat~ional I+'lood Insurance Act of 1968, the rrlost acc'u'rate topograph~g and elevat~io~n data available. •HIt 3121 EAS 34 1 (,~) ~YI~IPPIVIa ELEd1E~~'TS.-Each, rr2ap 2.~~pdated 2 ~~r-der this section shall: 3 (~i) (~~ovvv ELEV~~7~lov I~~T~. Assess the 4 accu~racg ~~f cup°~rer~-t ,ground elevation data- ~tcsed 5 ,for h?~drolog~~,c arid, h~~d~°au/,ic model2,~n,g ~ f .tlood- 6 i.~rtig su~rtirces and ~rnapping of the,flood hazard acid 7 wherever necessar2~ ac~~~t~tire new yro~t~nd elevation 8 data, utilizing the most 2cp-to-date geospa,tia.l, 9 tech~nolog~ies i~n accordance with, the existing 10 g2videbines and spec2ficat~aons of th,e Federal 11 Enaergencg Ma.7zage~ner~t ~gericz~. 12 (B) D~T~ ON ~ ti4ATERSHED ~ASlb'.-De- 13 velop Ilatio~rlal Flood Insurance Prog~l°anz flood 14 data ors a watershed basis= 15 (i,) to provide the most, technicrzll,~g ef= 16 fectire and efficier2.t st~cd,~ies and h,gd~~•olog~ic 17 cr,r~~-d hgdrai~d~i.c ~r~~,odelr,r~g; a~r~d 18 (ii) to eli,rninate, to the ~nraxi~m,a~m ex- 19 te~~it possible, disc?°epancies in base flood ele- 20 vations between au?~acent political, s~ubd~ivi- 21 lions. 22 (.3) OTHER r~~cLr~sro~~.5~.-In updating ma-ps 23 ~atnder then section, the Director shall include- 24 (f1) a~n;i~ relevant, infor°rnatiori on coastal i~r~- 25 wr~dat~ion ,frona •HR 3121 EAS ~~ J 1 (~i) are applicable i~ri2~,ndation ~rraap ~~f 2 th,e Cor°ps of L+'~rtig'i,uee~rs; a~rid 3 (~i,i) data ~~f' the Na,tio~rial Ocea~rric ar~d 4 Atnaosphe~r°~ic ~ldrrz~i,rzistrattiorz relc~ti~ng to 5 storm- surge rrzodeti-rig; 6 (B) any relevant ~~-ylfo~rmation of the Un~i,ted 7 States Geological S~tirrey on stream ,flows, ~tvu,ter- 8 sltied characteristics, a-nd top~graph2~ tho,t is 2~se- 9 ful in th-e identif%iea,t-ion gf',flood ha-za-rd area-s, a-s 10 deteruained by the D~~°ector; 11 (C) any r°elevaut inforrrtiat-ion on land sub- 12 s~ide~rlce, coastal ev°osio~n areas, and other.floo~r-~re- 13 laced 11-wards; 14 ~ (D) any relevant ire forrnati-on or data of the 15 Nat-Lon-al Ocea~ai,c and Atmosph,e~•ic 11d,~rii,~rii-stra- 16 ti,on ar~d tl~e Un~ate~d States Geological, b~n~rvcy re- 17 lati-ng to the best avaalable cl,~a~rr~ate science and 18 the potential for future zn~undation from sea le~L+el 19 rise, increased precipitation, and increased ira- 20 tensiti~ of hurricanes d2ce to global warming; and 21 (E) any other releva-nt information as may 22 be recomr~tended b~J tltie Technical ll2apping 11dvi- 23 sort' C~rrrem~ittee. 24 (c) ST~~1VDdRD~S.-Ira updating and ~rrtai7ltain~ing ~riaps 25under this sectio~r~, the U~y°ector sh,all- •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3h (1) establ~isli sta~~zdards to- (A) ensure that maps are ac~eg2~ate.fr~~°- ('r.) flood r•~ask, deter~rn2,nat,~,o~ns; and (i-i) use b~g State and hwa-l ~~o2+ej°n,~rne7~,ts i~r~- ~rna,riaging dewelop~rrr,e~~~,t to red~tice the ri-sk, ~~ f , f lood~,ng; and (I3) factilitate identification and ~t~se qf' cun- s~istent,methods of data collection and analgs~is by the D~arecto~; i~n conjunction with, State and local governments, in developing maps for corn- rnzer~tiit~aes with si~rrz~ikcr flood risks, as dete~r~rzi~~2,ed by the Di~~°ecto~r; and (~) publish rrtaps i~n a,fo~r~nat that ~is- (~1) d~ig'r,tal, geospatial, data compliant; (B) compliant w~,th the open pitihlishing and data e~•change sta,~rl,da~r~ds established bg the Open Geospatial, Conso~rt~i,um,; end (C) com,pl~i,an,t ~wi,th the Nortll, 1lmerican Vertical Datum of 1998 for Ne2v H~~brologw and Hgdra~tilic Fngineey°ing. ([t~ COMLtiIU~ICATIOl~ ~1ND OtITRE NCH. (1) Iw GEwFx~L.-The Dhector shall,- (~1) work to enhance co~rn~r2~unication and o~tct,~reach to States, local corrzneunit~ies, and prop- ertg o~t~~ners a,botct the effects of- •HR 3121 EAS 37 1 (i) ariy potential c12a7i,ges to Natio~r~tia,l 2 Flood Ir~s~~~rar~ce Program rrt,te ~nl,aps that 3 -raa~~ r•esttlt ,trnyn, th,e n~a~ppi;ng ~~r-og~ra-~rrz re- 4 gi~~ired ztrider this sectr'ori; a,n,d 5 (i-i) that a~-~y suc/ti cha~rrges ~rr~l~ag ltia2'e 6 ran flood insurance purchase req~ici,rem,eyl.ts; 7 and 8 (B) engage with loccr,l, co~mrynunities to en- 9 h.anee comrynunieat,ion and o2ct~°eaeh to the ~°esi- 10 dents qf' s~UCh, co~nmunities on the ~rnatters de- l l scribedunder s~tiUparcrg~°aph (~~). 12 (,~) RE~IrI~ED ACTIVITIES.-Th,e conanzur~ icataon 13 and out?°each activities requi7°ed ~u-rider paragraph (1) 14 shall incl2rrle- 15 (A) y~.otifying prope~~tg o2.u~ners ivher~, their 16 p~r•ope~r-t~i.es beco~rrie ~i,~rtcli~ded, in, or• when th,e;i~ are 17 excluded . f~ro7ra, a~n a~~°ea, havi-rig special, ,flood haz- 18 arils and tlLe effect of s~tcch, i~n-cLtcsion. or exch~sion. 19 on the applicability qf' the mandator~~ flood i~~,- 20 s~icrance p~u~~~ch,ase reg~tci7•eme~nt ttinder section 10~ 21 of the Flood Disaster Protection 11ct of 1913 (42 22 U.S.C. 401 Via) to such pro pe~~-ties; 23 (B) educatir~ag p~,opertg aurrt,e7°s ~•~ga~~°ding 24 the .flood risk and reduction of this risk ,z~r~ tl2ear 25 co~r7imurlity, including the continued flood ~~°isks •HR, 3121 EAS ~3 ~ 1 to areas that ~~re Flo longer sut~ject to the flood 2 ~~~zs2~ra~~ace ma~ri:dator;~ p~.t,rchase ~requ~i,renaen,t; 3 (C) educa,t~i,u,q ~r.ope~~~ty n~tv~r~e~rs rega~j•ding 4 th.e burlPf~its a,nd costs of rra~~~i,rr,tair~a~i~i:g or' acqui~°- 5 i~rzg.flood ir~s~~~~rarace, ~i<r-,clttidi~ng, ~whe~°e a,~pli,cable, 6 lower-cost prefer-red risk policies 'under the Na- 7 tional, I+'lood I7is~~~~ra~ice pct of 19F8 (42 U.~~~.C. 8 4011 et seq.) for such, propert,~ies and the contents 9 of such properties; 10 (D) educating properti~ owners about ,flood 11 ~rriap revisions and the pj°ocess ava'ilabte such 12 o~umers to appeal proposed changes in .flood ele- 13 vattions throz~yh, th.ei~r° correrraunitg; and 14 (E) encouraging p~~°npery~ty owners to m-a,i~ra- 15 fain or acqui~•e.flood ~ins~rti-ranee c~ve~•~xge. 16 (e) ~1r~Tr~~~Rr~aTr~N nF ~1r~PR~~PRraTro~,~.-TlLe~i-e is 17 authorized to be ap~rop~r°iated to the Director to cap°ry out 18 tlti~is section ~4UU,000,ODU for each, qf' ,f'asca,l ;year°s 2UU~3 19 the°o~ugh 2013. 2O SEC. I20. REMOVAL OF LIMITATION ON STATE CONTRIB U- Z 1 TIONS FOR UPDATING FLOOD MAPS. 22 b'ect,-ion 13F0(f)(2) of the National I+'lood Insurance tlct 23 q f 196'8 (4> lI. b'. C. 4101 (f) (2)) as amended b2~ st7~•ikzng `; 24 but which mag not exceed ~0 p~~°eent of the cost of cap°rgi~riq 25 out the ~reg2~ested r°evisio~z or 2Gpdate". •HR 3121 EAS 39 1 SEC. 12I. COORDINATION. 2 (a) INTER AGENCY BUDGET CROSSCUT REPORT. 3 (1) I~~' GE~~'ER1~L.-Th.e Secry~et~ar~ of Humelccnd 4 Securit.~, the Director, the Director of the Office of 5 lllanagement and Budget, and the heads of each Fed- 6 eral depa~~trrier~t or agency carrginq out activities 7 under sections 118 and 119 shall u~o~°k together to e~2- 8 s~tcre that,flood risk deterrn.i~r~atio~n- data and geospatial 9 data are sh-~zred a~n~o~rig f ode-ral age~n,cies i,n order to 10 ll 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 comrdi~r~ate the ~fti~rts of the Natio~rt, to red~~ce i,ts ~L~~irl- j~ie7•ahilit, y to floodi~r~g haza~y-ds. (~) REPORT.-Not later tlzarz 3U days crfte~r the sitb~m,~ssion of tltie U~tdget of the Unv,ted States Gover~~a- ~nent, by the Pres~de~rtit to Congress, the Director of the Office of ~1lanage~ment and I3icdget, ~in coop°dinu,tio~n 2u~ith tltie Federal Emergency Mana,,gement Agency, the United States Geological, 52~~~vey, the Nationa-l, Oce- anic and Atmospheric Administration, the Corps ~~f Engi~rtieers, and other Dderal ag~rticies, as a~pro- pr~iate, shall subrrait to the a-pp~rop~°iate az~tltio~°tiz~i~~lg and appropriati~req co~rrimittees of the Se~r~ate a~ad tl2e house, of Represe~ratatives a f'in~r~cia-l, report, ce~y~t~fied lry the Secreta~°y nr head of each such agerrc~y, a~~~ rt-te~rager~,~y budget, crossczet repo~l•t that displa,~ys the bttidget proposed ,for each of the Federal age7~.cies ~tvork- i.ng on ,flood risk deter~rniriu,tw~~z data and di-gital ele- •HR, 3121 EAS 40 1 vateo~r- rr-odels, i~r-cl2--dvr-g cvr-~ ph~~-~~r-ed it-terr~,ger-c;y o~r° 2 int,~raager-c;~ t-rar-sfers. 3 (h) D~;TIFS OF THE DIRECTOR.-hra ca~r~r,Jir-g oz-t sec- 4 t,~ior-s 118 a~rad 11 ~, the Director sha,Gl.- 5 (1) participate, p2~~rs~-cor-t, to sect~ior- ,216 qf' P-~b- 6 Tic Lew 10'7 3~~ (116 Stet. ,2J45), i~rti the establ,ish- 7 meat qf' sru;h standards ~~nd common protocols as are 8 necessarg to assure tl-,e ~interoperab~ilit~~ qf' geospatial 9 data, fo-° all 2tisers of suclti information; 10 (`?) coop°dinate with,, seek assistance and coopera- 11 t~~o~-~z of; a~rtid p~rov2de l~aaiso~n to th,e l+'ede~ral Geog~r°aphtic 12 Data, Corra~rraittee p~u~rsua~r-t to Office of D7ar-agerr-er-t 13 and B2crlget C,ti-°c2-lar g-16 ~z~n~~ L+'xecutive Order 14 12906 for th.e i~mplerr-entation of rcnd corr-plia~r-ce ~tuith. 15 s2UCh star-dar~~s; 16 (3) -zrzteg~rate with, le~-~erage, an-d coordi~nate.fuy-d- 17 i~r-g qf; to tltie rr-axim-~rn extent p~racticaUle, t,1ie c-ti°rrPnt 18 ,flou-~ rna~pir-g acti-viti.es -~f each ~--ni,t of State anal 19 local, government; 20 (4) integrate with,, leverage, and coordinate, to 21 the max~i~m2tm extent practicably, th,e c2-~°rent 22 geospatial activities of other Fede7°al agencies and 23 n,r-its of State ~r~-d local govern-rne~r-t; ~r~-d 24 (5) develop a fur-d~r-,q strategy to leverage a7-d 25 coord~ir-ate b~u-dgets and experadit2vres, ca~-ul to establislT. •HR 3121 EAS 41 1 joint ftr,rid~ing Yrtech-a~rlisrrzs with, oth-er b'ederal a~~encties 2 and zr,riits of ~~~tate and local, gnve~°~ri,mer~t to share th.e 3 collecttion and nt~i-l,~ezati.o~r- of geospatial data a~rr~,on,~ all 4 gore~rrerne~ntal, users. S SEC. 122. INTERAGENCY COORDINATION STUDY. 6 (a) Iw GEwEx.~.-Th,e Di-rector shall enter into a con- ? tract with, the 1~'atio~rtial Academy of P~~eblic Administration 8 to condz~ct a st2~dl~ on how the I+'ederal, Emergencl~ ~12anage- 9 meat AgPnc~~- 10 (1) shouldimprove inter°agen~~ ~xnd ~intergovern- ll mertital coo~~°dinat-ion ort ,flood mapping, including a 12 , f rndirag sty°ategy to leverage and coordinate budgets 13 and expen~hitures; a~r~d 14 (~) can. establish. joint, ,fi~,nding naechanis~rns tt±ith. 15 other 1+'ede~ral, agencies and ~ttrii,ts of State mrrd local 16 gove~rr~nre~nt to sltia~•e the collect~ior~, a~rl-d z~#~ilizatio~n of 17 data an~,o~r1,g all gor+e~y-nmental users. 18 (b) TzuzNG.-Not later than, 1~U dais after th,e date 19 of enactment, of this title, the l~atio7~,al Academl9 of P~~wlic 20 Administration shall, reE~ort the findings of the st~adi~ ~°e- 21 grcired under s~cbsection (a) to the- 22 (1) Committee on ~ank~ing, Ho~us~eng, and Urban 23 Affair°s gf'the Senate; 24 (~) Cornrre~ttee ora Financial Services of the 25 House of Repres~ntat~iwes; •HR, 3121 EAS ~9 J 1 (.3) Corra~r~iittee o~n ~lppropr~iatior~s qf' t11e Senate; 2 a~ri d 3 (~) Corn~arrttee ort ~lpp~~•op~~°iatiorrs of'the Ho~,~se of 4 Represerrtat-fives. S SEC. 123. NONMANDATORY PARTICIPATION. 6 («) ~%u~~-~1TAN~ATOR~~ Y~TZCZP ~TruN r~~ N~Truw~ 7 P+LOOD INSURA1ti'CE PROrRA?II FOR 500-YEAR P+LUOD- 8 PLAIN. Anp area located within th,e 500-gear floodpla~in 9 shall, aot be, sab~ect to t1~e manda,tor2] pa~~°chase requirements 10 of sections 102 or 202 of th.e flood Disaster Protection ~lct 11 ~f'1973 (42 U.S.C. 4012a,; 4106). 12 (U~ NOTICE.- 13 (1) BY DIRECTOR.-In carry~ang o~u,t the ~ ~ztu~nal 14 I+'lood Insurance Program, th,e Director shall provide 15 f~iotiee to ang co~rtni~r-nit~y located ~n ~zn area tui-thi,r~ 16 the :~00-~ea~r.flnodpla,i~r~. 17 (,~) TPVIIN(~ OF NOTI(,'E.-The o~otice req~~ fired 18 ~u~rrder paragraph (1) shall, bemade aot later tha~rz 6 19 muntlls after the date of completion of the iu~itial, 20 mappiytig of the 500-year floudplai~n, as req~wired 21 ~unde~° section 118. 22 (3) LENDER RE(~UIRED NOTICE.- 23 (A) RE~,l'I,ATED LENDING rN~S~TrTi~TION~S~.- 24 Fach federal or• State eatit2g for leading reg2cla- 25 tioa (clfte~r co~ns2dtatio~rti and coordi7~~atur-~ u+itlti •HR 3121 EAS 43 1 the Federal I'~i~jia~~zcial Irastit2~-bons Examination 2 Council,) sha,l,L, b~ i°e~daturn, ~requ~i.7°e ~~°ec~nlated 3 le7~id~eng i~~stitutinns, as « co~rid~i,tion of ~na,king, 4 i,rr,creas~i,~tig, extending, or rene~u~irrg xn,1~ loarti se- 5 ct,~i°ed b~ p~roper•t~~ Located ~i,~~Z a,~rr, area ~t itlzirc the 6 500-dear floodpla,i-n, to notifi~ tLze pttirchaser or 7 lessee (or obtain satisfactory assurances that th.e 8 seller or lessor h,as not,~~fied the purchaser or les- 9 see) and the servicer of the loan that such p~rop- 10 ert~~ is located in an area withan th,e 500-gear 11 floodpla,i~n., ir~i a nian.ner that is co~rtis~istent ~u.~~ith 12 ar~,d substa~ntialby identical to the notice ~requ.i~~°ed 13 ierader section 1364(x)(1) of the Nat~o~nal Flood 14 lrisurance pct of 1~~68 (~2 U.~S~.C. 4104a.(a)(1)). IS (BJ FEDEK~IL OR ~S'TATE ~1CEJ'CY L~~~D- 16 H;R.ti.-Each Federal, o~r State agency le~rzde~r 17 shall, by ~reglclation, requ~i,~~e noti,t~cation. ~i,n the 18 same rr--ann.er as provided u~r~,der s'«bpa,ragraph 19 (A)with respect to any loan, th,~ct ~as rnu,de b~~ a 20 Federal, or State a~~encJ lender and seclcred b~~ 21 p~°ope~°ty Located in a-n area, u~ith.in the 500-;i~ea~r 22 floodplain. 23 (C) PE~Vf1L1'Y FUR ~'~'UNCU1t1PLI ~~YCF.. fln 2~ 24 regzdated le~r2ding institution or° I+'edercd oi° State 25 c~genc~ Lender that fails to corrl,plp ~u~itlti the rto- •HR 3121 EAS 44 1 tice requ~i~°enee~rats established by this para~~ra-ph 2 s1~.rxll, be s~~bject to the t~erLalties prescribed ~ar~der 3 seet,~urr~~ 102(f)(.5) of the I+'lood Discrste~r• Protect'io'n 4 Act, qf' 1!1'%3 (~~ U.S.C. ~U12a(f)(~))• S SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY E) UNDER RESPA. 7 Section 5(b) of the Real, Estate Settlement Proced~i~res 8 Act of 1974 (12 U.S.C. ?604(b)) tis amended- 9 (1) ~in pay°ag7°aph (4), b,~ sty°ikinq and" and 10 ~zrtise~°ting a se,mieolon; ll ('~) ~i~n par~ayra,ph (~), b~~ strik~inq the period and 12 ~ir~sertirtig `; arid'; a~rtid 13 (3) by adding at th,e e~rld the follo~zwing: 14 "(6) an explanation of flood i,ns~~r.ra~~ce arrd the 15 availahilit,y of .flood i~nsn~ra,~nce ender the Na-tior~al 16 flood I~nst~rar~,ce Yr•ogr•an2,, ~u~ltiethe~• o~~• not the ~r•eal es- 17 Late is located i~rl, an area havinct special, .flood h,az- 18 arils. ". 19 SEC. 125. TESTING OF NEW FLOODPROOFING TECH- ZO NOLOGIES. 21 (a) PERMISSIBLE TE,S'Tl~l%U. ~ tem-pora,ry residential, 22 struct,2cre built.for tdtie purpose of testing a nezv flood pr~ogf= 23 ~zng tech;nolog~, as described in subsection (b), ~n and State 24 or eo~rnn~2c~rtity that rece~it~es rnit~igation assistance u~r~~der sec- 25 tion 1366 of the National I+'lood Ir~s~~,rance Act qf' 196'8 (42 •HR 3121 EAS 45 1 U.S.C. 4104c) rna~ rust be cor-str2~ed to be in vtiolat~io~n of 2 ar-y flood rash; rr-~it~gat~errr- ~r~lar- det~elo~ed b,~ thrit ~~~tate o~° 3 con-~rraunit,~i/ cr,~r-d a~~roved t~~ tdtie Dtir•ecto~r• of t~ze I+'e~lP~-°~r-l 4 E~r~ie-rge~rzc~~ M~r~r-crge~rrr,er-t ~lgenc;i~. S (b~ CO~VDITIO~VS UN TES17N(,.-Testing pe~rrr~2tted 6 ~-tnder snbsecti-on (a) shall- ? (1) be ~eyformed on an ~-~ninhubited residential 8 styncct~cre; 9 (~) require dismantling of th,e str2cet~tire at the 10 concbtcsion gf's~tich testing; and 11 (3) r°equ-ire thrxt all costs assoc~a,ted n~ith such 12 test~i~rtiq a~f~ad dis~r-arr~tling be covered h~~ the individual 13 or ent~at~ corldir,cting the testing, or on ~-vhose behalf 14 tl-e testis-g 'is cor-ducted. 15 (c) RULE OF C,Oti~sTxUCTZOIv-Noth,i~-g in this section 16 sha6t be constr~Ged to alter, ti~-~rait, oj- exte~-zd th,e availability 17 gf.good ir~isz~~rance to any st~-°-tictu~-°e that rr-a,,y en-t~loy, ztt,~i- 18 h-ze, or apply any tech-nology tested ~-,cnder s~Ubsect2.on (b). I9 SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS ME- 2O DIATION PROGRAMS. 21 Cll,apter I of the National P+lood Insu~°ance Act of 1968 22 (42 U.S.C. 4011 et seq.) is amended b~ inserting afte7° sec- 23 tion 1313 tore following: •xtt si2i Eas 4 E~ 1 "SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS 2 MEDIATION PROGRAMS. 3 "(a) REr~t~rRE~1EwT TU Y~RTIC,II:ITE.-In the cure of 4 the occurrence qf'a mcr-jor disaster, as defined 'in section 102 5 of the Robert, T. Stafford Disaster Relief' and Emergene 6 1~ss~ista rl,ce Act (42 U.S.C. x122) that rna~~ leave res2til ted ~i~n 7 flood darynage tender the flood ~ensura~nce pr~~q~rain estdbl~ished 8 ~acnder this chapter and other personal lines residential 9 pr•opery~t;~ i,~nsura~nce coverage offered b~g a ~~~tate ,~°eg~s,lated ~ir~1- 10 sup°er, upo~rti re~~uest rrza,de b~g th-e insurar~~ce cnnarrt%ssione~r ll of a State (07• such, ether gfficial, resp~rrisi,ble fo~• ~r•egz.tlati~rlg 12 the business of i~istti~rance in the State) for the pa~~tici-pat~i,o~rl- 13 of representatives of the Director i~n a progravn sponsored 14 b.?9 s~t~UCh State for nonbinding medi,at,~i,on of insurance cla~i,ms 15 resulting f~°om u, m~z,~or disaster, the Director shall, ca~rese 16 representatives of the flood insurance program to pa,~~fiic~i- 17 pate ~in such a State program zvliere claims under the flood 18 ~i~rasuraryace program are ~ir~zvolved to expedite settlement of 19 .flood damage claims resultir~~,g front such, disaster. 20 "(b) EXTF,NT OF YEIYTICIP~1TI01~'.-In satisf2~ing the 21 ~°equire7rtents qf' s2rbsectio~ra (a), the Director shall i°equire 22 that, each rep'rese~rztat-eve of the Dig°ector- 23 "(1) be cej°tified ,fo-° pu~°poses of the flood insur- 24 ante prog~raYn to settle clairrrs against such p'rog~r•ant 25 ~rest~lt~i~r~,g f~°arra sz~ch disaste~r~ ir1 ant-oa~~rzts ~~p to tlLe 26 li.~~nits qf' policies under such proc~rr~rn; •HR, 3121 EAS 47 1 "(~) atte~rld b~tate-spo~r~sored mediatio~r~ ~rr~eetengs 2 regar~dir~,g flood i,~ii~su~rarice cla~i,~rns ~~°es2~lti~ng .trorrr su.~'h. 3 d~saste~r at, such, tir~~es and places as rr-,a,y he a~~-~~•a~~ged 4 b~~ the State,; 5 "(3) par~~t~i,cipate ~irz good ,faith ~negoti,atio~~~-s to- 6 ward the settlement, of s~i~ch claims wtitlti ~~olic~.yholders 7 of coverage made available ~ttnde~• th,e flood ins~zcrance 8 p7•ogram; and, 9 ~ "(4) final,~aze the settle-meet of such claims on be- 10 half' of the floodinsurance p~°ogram with such ~olzc~~- 11 holders. 12 "(c) COORDINATION.-Rep?°esentatives of the Di~recto~r 13 shall at all times coordinate their act'ivit'ies ~i ith insurance 14 of,~ic~ials of th,e ~~~tate a~rzd ~represery~.tati2~es of ~ir~s~it,rers for th,e 15 purposes of cnrisolidating and e:xpe~itil~.g settle~rr2ent of 16 clairyns under the r1~at~iorlal.flood tinszc~•ance prn~ra~ni r•esalt- 17 iri-g,f''r°o~rr-- such. disaster°. 18 " d ~UdLIFIC.~TIONS OF ~IEDIAI'ORS.-Each State 19 mediator participuti;ng i,n State-sponsored mediation Lander 20 this section shall be- 21 "(1)(~l) a member in good standing of the State 22 bar i~n the State in which th.e ~ned,~iation is to occur 23 ~auith at least ~ gears of practical expe~~ienee; and •HR 3121 EAS 48 1 "(B) ctrl active r~~e~~r~ber of such bar f'o'r at least 2 1 yea~r° priu~r to th.e year ~ir~ ~i~~hich s2~eh- -ried~iato~r's 3 ~a-rticipatinjr is sought; o~r• 4 "(~) a ~ret~ired, trial.judge.t~ro~r~a a,r~~9 Uri,i,ted States 5 ,j~tcy°~isdi,ction wh,o was a rrie~n,ber i,ra good sta,~n-di-ng of 6 t1i,e bar i-~n the State i~~ which the j~icdge t~~resi.ded fur 7 at least 5 ?years ~~riur to the ~~ear iryti tvh.ich s~tteh, medi- 8 ator's 2~artici~ation 'is soz~ght. 9 "(e) 1VTEDI~TION PROCEEDINGS ~VD DOCP~tilE~ti'Tb" 10 PRIVILEGED. ds a condition of participation, all state- 11 ~ruents ~jr~ade a~rld docu~rrzents produced purs2~a~rtit to ~.5'tate- 12 sponsored mediation iravolv,t,rly r°ep~rese7~ta,tives of the Di~rec- 13 for shall be deerrzed p~r°iv~ileged and co~rzfzderdial settle~rlent 14 ~negntiations rraade in anticipation of litigat~i,o~rz. 15 "(f) LIABILITY, Rrc;xr,5~, oR OBLIGATIONS Nor ~~- 16 FFrTFn.-Pa~r-tici-pati.n~ra ~in State-spor~soi~•ed ~rnediati,u~n~, as 17 described in tlz,is sect,~ion does not- 18 "(1) cr-ffect or e~:pand tltie liabzl~ity ~f' an.y party 19 i~ti cont7°act u~° iyi tort; ur 20 "(,~) u,,ff'ect the rights ur ubl~igatiuns of the pa~~ties, 21 as established- 22 "(A) zn any ~°egulation issued by th,e D~i~r°ec- 23 tor, including any ~~~egulation relating to a 24 standard flood i7~surance pol~ecy; 25 "(B) u~2de~r~ this ~lct; end •HR 3121 EAS ~~ 1 "(C) 2~nder cony other provistio7~~ qf' I'ede,y°al 2 la-v. 3 "(q) E I CL L'SIL'E P+ EDERdL .I URISI)IrTZON.-P~z ~ ~t~i,c~i ~7cr,- 4 t-'on ~in State-spor-so-°ed rnecti-ati,orti shall not a,lte~r, cha~rrge, 5 o~r modify the o~r~igir-al exclusive ,ju~r~isd~~-coon, of Urtiated 6 States co~trrts, as set forth in tltiis ~lct. 7 "(lti) COST LI~IIT4TIUN.-Nothing i7~ti this section shall 8 be constr~ned to req~icire the Director or a representative of 9 the Director to pay additional, mediation fees relating to 10 .flood insu7°ance, cla-urns associated 2vith aState-sponsored 11 mediation program i~n which such repr~eser-tatit~e gf'the D~a- 12 rector participates. 13 "(i) ExcEPTZOw.-Ir- the case of the occurrence of a 14 n-,ajor disaster that -res~T.lts i,rt ,flood da~~riaerge cla~i,rr-s ra~nder 15 the r-at~ior-,al.flood ins2rrance ~i°og~ran-, rrnd that does -~ot re- 16 cult ~i,r-- ar-,~ less cot+ej•ed by a personal, l,i-nes resider~ti.al, pj-op- 17 e~-°t, y tins-c~rance policy- 18 "(1) this section shall, n,ot apply; arnd 19 "(.?) the provisions of the standurd flood i~ns~-~r- 20 ance policy ~rcnder the national flood ins2~rance pro- 21 gram and the appeals process established vender sec- 22 tion 205 of the &acnning-Yereuter-Pb-~mena~cer I+'lood 23 Insurance R~for~n ~lct qf' 200i (~2 U.S.C. !011 note) 24 and th.e regulat~ior-s ~iss~iced pu~r°sucx~r-t to such section 25 shall apply exclusively. •HR, 3121 EAS 50 1 "(j) REPRESE~tiTf~Tlb'Eb~ OF THE DIRECTOR.-For p~ur- 2 poses of this sect~in~rt., th.e terryrl, `rep~-°eser~~tatives of the Di rec- 3 toy' mea,~ris repr•eser-tat,~i-1~es of the natior~~al .flood irisura~rrce 4 progrrLr~~ ~u~ho pai~tic~i.pate ~ira th.e a~pea-ls process establ~-'shed 5 zr,~r~ade~r secturrl, 205 of th.e Burt,r~,~i.~~~g-I~ere~~te~r°-I3Gi~rne~~taiter 6 I+'luod Ins~~~ra~,ce Reform dct of 2004 (42 U.S.('. -1011 7 note). ". S SEC. 127. REITERATION OF FEMA RESPONSIBILITIES 9 UNDER THE 2004 REFORM ACT. 10 (a) 1121~VI~l1C'~l1 TR~~I~'~7~1"G ~.ND ED[.~C~TION RE(~ZiIRE- 11 1~IE~~'TS.-The, Director shall contin2~e to icu~~°h; with the ~i~ra- 12 sura~nce i~ndust~r~g, State ~i~as2~r°a~~ce ~°er~iclators, cold othe~° ~i~l- 13 terested parties to i~mpleme~nt the ~revni~rnurra trai~ni~ng a7ad 14 edt~,cation standards for all, ins~~,~°~nce ages-ts ~tc~ho sell flood 15 ins2r,rance pnGicies, rxs s2~ch sta'nda'rds ~zvere dete~rrni~ned h,~ 16 the Di~recto~-~• ~i,~n the notice p2~hZished in the I+'ede~ral, Re~iste~• 17 or~~, Septe~naber 1, 2UU5 ('%U Fed. Recd. 5,11 %) pursuant to 18 section 207 of the R~urtini~~~q-Bere~rtter-Blume~na~uer I+'lood In- 19 surance Reforyn, Act ~~f'2004 (42 U. S. C'. 4011 note). 20 (b) REPORT ON THE OPEKI~L I32PLE~'~IE~rT~~TION OF 21 THE REFOK:VIIICT OF 2004.-~1ot late~° th,a-n 3 months after 22 the date of the enactment qf' this title, the Director shall, 23 su,bm~it a report to Cong7°ess- 24 (1) deserib~~ng the ~i~r~i,ple7ne~ntatior~~ of each, p~~°ov~i- 25 sion qf' the Pu~rtning-Be~r°e~tt,ter°-Bl~urner~auer I+'lood In- •HR 3121 EAS t~ 1 1 s2~~rarace R~for ~n ~lct of ,004 (Pi~bl~ec Lc~~lti~ 108-~6'4; 2 118 ~~tat,. i12); 3 (,~) ~de~nt,~-f~J~~rg each ~•egz.~lat,nr~, rr~•c~e~r•, flnti,cP, 4 and other rnute~ri~r1 issued by t/tie D~i,~•ector ~-~n, ian-ple- 5 rnerat~i.~nq each ~~rovzszora of tltiat Oct; 6 (3) ex•irlaini.ng u,ar~y statactory or imE~lied dead- ? lines th-at have nut been met; and 8 (~) i~roviding an estamate qf' wh,e~n the reg2a:ire- 9 rraents of such missed deadlines u~~zll be fulfilled. I ~ SEC. 128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT 11 INFORMATION ON CLAIMS PAYMENTS. 12 (a) Iw GE1vER11L.-The Dig°ecto~r shall eolbect, , f j°o~rrz 13 yroyerty and casualty i~nsua°ance corrapanies that a~°e au- 14 thr~-rued by t,{re hirector to pa~rt~iciyate in the jVri,te Yozca• 15 O~av~ra ~rogra-m, an,y i.rzformation grad data needed to dete~r- 16 raairae the acczca•acy of the ~resohat~ion of.flood clairaas filed ova 17 ari,y proye~a°ty i~nsaared ~weth a standard, ,flood i~nsura~nce ~r~ol- 18 icy oUtained iti~n:der th.e ~~~rogram that was sttiUject, to a.flood. 19 ~~ TFPF. OF INF'l)RJL~TI~iV TO BE CULLEC'TFn.-TI1,e 20 iaaformation ct~nd data to be collected ~ac~ider sichsectioaz (a) 21 -may ~enclude- 22 (1) any a~j~uster esti~ma,tes made as a res~aalt of 23 flood damage, and ~f th,e i~atisuranee cornpan,y also ~n- 24 sores th,e p~ro~e~a°ty fbr u~irad darnage- •HR 3121 EAS ~~ 1 (~~) r~-ly a~zjuster estimates ,for Goth- ~Iti~ti~nd 2 grid .thod da~r~age; 3 (I3) th-e a~mouyrt paid to the p~y•nper~t~y nwrle~. 4 ,for' ~tvir~d a~~r-d.tlood chri-eras; 5 (C) the total, arrao~urat paid to the polic?~- 6 11-older .for damages as ca restalt of the event t.Itiat 7 caused the flooding and other losses; 8 (~) any amounts paid, to the policyholder by the 9 ins~~ra,Yaee company for darynages to the insured prop- 10 e7~y other than flood darynages; and 11 (3) the total a~naou~aat paid to th,e policyholder by 12 the insura~aace company for all daryaaages incurred to 13 the insured p~roperti~ as a result of the,flood. 14 SEC. I29. EXPENSE REIMBURSEMENTS OF INSURANCE COM- I S PANIES. 16 ~a~ ~~tIR1VfI~4~~IOV OF BIF,NNIt~I. RF,PORT~~,- 17 (1) TO THE DIRECTOR.-Not, later t,11,a~aa ~(~ da1~s 18 crtte.-r the date of e~ruxct~rient gf'this ti-tle, each, ~rope~rty 19 and castcalty iras~tarance company that is authorized 20 vy the Director to participate tin the Z~7°~ite Fotar O~ar~~aa 21 program shall submit to the Di~reetor a,ny b~icnnia,l, ~°e- 22 poi°t prepared in the prior 5 yeas°s by such coynpany. 23 (,'~) To r~t0.-Not later than 10 days after t11e 24 sulraatiss~ion of the bie7an~ial ~repo~r~ts under parax~rr,~ph •HR, 3121 EAS J ~~ 1 (1), the Director shall submit all s2cc1~, ~°e~o~~ts to th-e 2 Con~ptrolle~r (~enera.l, of the Un~.ted ~~tates. 3 (.j~ NOTICE TO COtiUPES~S' OF F~ILGRE TO C.'O1V1- 4 PLY.-The D~irectof° shall notify and ~ret~or~t to the 5 C~rrn7n,ittee ojr. f3a~llcing, Ilo~t~sz~rrg, c~~r~d hr~ba~r-, ~~ffai,~°s 6 of the Senate and the Co~n,m,ittee un P+inanciul, Ser~w- 7 ices ref the Ho~t~se of Representat2ves on any ~~roperty 8 and casualty 2~ns~~rance conzt~any ~~artici~~atinq in th,e 9 Write Your Own 2~rogram that failed, to submit its b~i- 10 enn~ial repo7~ts as required under paragraph, (1). 11 (4) ~'~rLrRE To coMPLY A property and cas- 12 ~zUalty ~it~isura,~rtce co~rr~pany that is author-ized by the 13 Director to partticipate 'in the Write Yo2a~° Ow~ji pro- 14 gram, ~tvh.-ich. fails to co~nrply ~ivi,th, the report~,ng ~r~e- 15 gtr.~i,re~~ri,ent insider th.~s subsect~io~rz o~r th.e requi~r~ejraeut 16 under sect~,on (i2.23(~)(1) of t~.tle 44, Code of Federal 17 Requlatio~ns (~°elcnti,ng to h i,er~,n ial a~edit o f tl~,e, ,flood i n- 18 s~r~trance financial statements) shall be sa~ject to a 19 civil, ~en,alty in an remount equal, to $1,000 tier day 20 for ea-ch, day that the comya~ny remains in noncomt~li- 21 ante with e~ithe~° such requirement. 22 (h~ FE11~~ RULE1l~~KI~VG ON EYI'F,N~SEb~ OF ti~'O YRO- 23 I~R~M.-Not later than 1t~0 days after the date of enaetntie~nt 24 of this title, the D~i~l°ector shall conduct a -~~ulernahinq ~ro- 25 seeding to devise a data eolleetio~r~~ methodology to allo~~t~ the •xx si2i Eas ~~4 1 I+'ederal Er--ergency tila-layerne~-t ~,qe~r-cy to collect con- 2 sistent, ~er~f~rr~r--attion o-- tl-e expenses (ti-~c1,2~~2,r-g the n~e~r•nt,~~ng 3 a~-d, adn-~tirrist-r•at~ive e.x~pe~r1-ses fnr ~t~hustm,e~r~-t, of cla~i~nls) of 4 property and casualty ~zr-st~,rczr-ce cor-i,pcr,ra~es ~r~~-~-°t,~ic~,pat~,-~-g 5 tin tl-e ~~-~~ite ~'o-e-° O~tvn ~7~og~rc~~r-, .for seGGirtig, ~~-•i,t~i-~g, a~r-d 6 servicing, standard flood ~~;r-s~-~ranee pol,~,c2es. 7 (c) SUBdIIb'SION OF EkPEiI'SE REPORTS.-Not, later 8 than 60 days ~afte-° the effective date of the ,f znal, rt-le estab- 9 lashed purs2ca,~nt to subsection (b), each property and, cas- 10 ~a~alty -insurance company participattiny tin the Write four ll Own p~-°ogram shall sicb~rr-it a repo~r~t to the Di-°ector that 12 details for the prior 5 years the expertise levels of each such 13 company for selli~~i~, writing, a'r-d se~rwicing standa~~rd flood 14 ins~crar-ce policies based or- th.e 'n-eth,odolny~r,es establishkd 15 u~~-der suhsect~,n~n (h). 16 (d) I+'E~VIA RUGF:aTAI{I~r l)w RFhvIRL~R,~F.~rFNT C)h' Ex- 17 PEN,~~E.S' TTNDF.R THE tiVYO PROGR 111.-Not later' th.ar~. 15 18 rno~r-th cr,,fter tl-,e date of enactyr-er-t of t1~tis t,~i,tle, t1~ D~i-°ectnr 19 shall, cond~-tict a rule~muki,--;~ pruceediny to forma-late 'revised 20 expense, remUt~rse~ments to property and casualty ins--rance 21 companies ~a,~-°tici~atinq in the ~~rite Your Own ~ro~~~-°~m 22 fo-° thei-° expenses (cneludiny their operating and admznis- 23 t7~°ative expenses ,for adjustment of elai~ns) in selling, writ- 24 if-~~, and s~-~vecir-g standard flood i~tisu-°artce polic~zes, z~raclud- 25 i7~ig Itio~tw such cory-ip~xrzies shall be reirnhursed in voth, cata- •HR 3121 EAS JJ 1 strophic artid non-catastrophic ?~ea~rs. Such reirnb~t~.~rse~rnents 2 sha-ll, be st~~2lcttrred to e~r~su,re ~~°eirrlb~~r,rserraents track, t1~e rr-c- 3 t,2~al. e:xpe~nses, ~r-~rlclll.di~~lg standa7•d b~~si~-tess costs cr.~nd oper•- 4 at,~i,ng expenses, of such co~n~pani,es as chose as p~°acticahty 5 possible. 6 ~P,~ REPI)RT (1F THE DIRECTOR.-1~'Ut hLtery' ty1,~j~t GO 7 dais after tJ2e effective date of arng ,final, ~nle established 8 pury°suant to subsection (b) or subsection (d), the Director 9 shalt submit to the Committee on Banl~ing, Housing, and 10 Urban ~~ffairs of th,e Senate and the Co7nn~aattee on f'~nan- 11 cial Services of the House ~~f Representa,t-fives arepo-rt con- 12 tai~ni~f~lg- 13 (1) the specific rationale and purposes of s~ueh 14 r2~le; 15 ('?) the ,y°easons for tltie adoption of the policies 16 co~~~-tai~rr.ed iu such rule; and, 17 (~) the degree to 2vhich such, r°ule acctcratel,~~ ~rep- 18 resents t1z,e ~t7°i.ce operati,~r~,g costs and expenses of prnp- 19 ert~ and cas~a~altg insurance companies par•ticipatting 20 in the ti~rite ~'ou~° (~~wn program. 21 (f~ G~~O STUDY AND REPORT ON EYPE.VSFS OF 1~ O 22 PROI:RALtiL- 23 (1) STIrDYIt'ot late7~~ than, 130 lags after the 24 effective date of the final r~u-le established pursua~rtit to •HR 3121 EAS J~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 s2cbsect~io~ri (~~), the Cont.ptrolle~r Ge~~eral of tl2e United ~~~tates shall- (A) coradu.ct a st~~tidi~ o~i, the eff~,cacl~, ade- qua,cg, a~i,d s~u f f%i.cie~r~c1~ ~~ f th,e . final ~~ittes estah- l~ished ir~~~rs~~ard to s~t~bsectio~r~s (b) a~rl-d (d); a~~zd (B) 7•ehort to the Comnmi,ttee orya Ba~tikti~i~, Hosing, and Urban affairs of the Senate a~~id the, Committee on Financial Services of the House of Re~~°esenta,tives on the ,findings of th,e study condz~ccted under subparagraph (A). (,~) (~~10 4C~THl)RITY.I~a conducting the studz~ and ~repo~rt ~°equired u~rlde~° paragraph, (1), the Comp- troller G~rieral- (~1) rr~.ay ~~-se any ~re~t~irn.rs findings, st~r.dies, o~r reports that the Co~rriptrolle~~° Gener°al pr°e- vio~z~sly co~~rr,pleted orz the Write Yo~~r O~w~n pro- grant-, (B) shall determine if= (~i) the .final 7~~cles established p~~.c~r~s~aant to s~itibseetions (b) and (d) allow the I'ede~ral Emergency Management Agency to access adequate informat-ion r•~garding th,e actual expenses of ~rope~rtg and casicalt~g insurance c~rrapan~ies pa7~~tic~ipatiry~g in the jVr•~ite Your O~turt ~rogran~ti; and •HR, 3121 EAS e) 1 1 (ii) the -~~ctu-a~ j°eiry-iburse~rr-e--ts paid 2 gut, 2cr-~ler the f~i~nal, ~~-le establ,~ishe-~ 2,r- su,l-- 3 sect~i---rr- (d) acc~ti~-•atel~~ -•~flect the e:x~~er~ses r-e- 4 t~o7•ted ~rl~ p~r•ot~er-t,.l~ and casualt~~ ~~~ras~t~rance 5 corr-pa~r-~ies t~a7~ti-c~ipattir-g ~i-r- the tier^ite Your 6 U-,un program, incl,~-~ctv,~-g the stanu~a~rcl b~-~s~i- 7 Hess costs an-~ operating e;x•pe7tises of s~r-ch 8 c~mpan~ies; anc~ 9 (C) shall ana,b-~ze the effect of such -~Ules on 10 th.e level -~f parttic~tipation of propert~~ anr~ cas- 11 ua,lt2~ i~-~is2t~-~e~rs i7~- th,e Wr2te Your O~inn p~ro~r~xrr-. 12 SEC. 130. EXTENSION OF PILOT PROGRAM FOR MITIGATION I3 OF SEVERE REPETITIVE LOSS PROPERTIES. 14 (~) Iw GE~ER~L.-~~ect2,o~n 13h'IA of the 1~'atio--al, 15 I'loo-~ I~r-st~~°~nce 11ct, o f 1968 (~2 U. ~~. C. 4102x) is a-ne~-~---i- 1 fi n~l- 17 (1) i-~r-, subsectiv'n (k)(1)- 18 (A) i-ti the ,fz~•st, sentence, by strzk~i,~ng "i,n 19 each of ftscul ~~ears 2005, 2006, 2007, 2003, a~n~~ 20 2009" anal inserting "tin each fiscct-l ~e~r tlvro~it yh, 21 f ~scal, z9ear ;?013''; and 22 (B) by aclc~ing at the end the follou~~ir-g new 23 sentence: "For f zscal ~~er~rs ,008 th7°o2~gh- the 24 2013, the total ayr-ou~r-t that the Di~-•ector ~-na~ icse •HR, 3121 EAS J~ 1 to provide assista~rlce n~nder this sectinri shall riot 2 erceed X240, 000, 000. "; a~ri ~~ 3 (~) lr~ st~rik,~i.ng suhsect~ion (l). 4 (l)~ DEPORT TO CON(~RESA~' ON LM1IPLE'L7E~~'T 1TIO~ti' b~111- 5 IvS.-~ti'ot later than G' ~rraonths after the date of en-uctni.~i~r.t, 6 of this title, the Director shall re~r~ort, to the Committee on 7 Banking, Hoz~sting, a~~tid L%rban Affairs of the Senate and 8 the Committee on F~inanc-ial Services of th,e Honse of Ret~- 9 resentatives on the status of the im~le~mentat~on of the pilot 10 program for severe ~°epet~t~ave loss p7°operties anth,orized 11 wider section 1361 of the Natio~rtial P+lood Insura7~~ce ~lct 12 of 196'8 (42 U.S.C. 4102x). 13 (c) RI'LE.v1~~1~1w~.-1Vo later than 90 days ~xfter the 14 date of enaet,~rrre~rt.t of this title, the Di-~r°eetor shall ~rss2~,e final, 15 rules to carp°y out the severe repetiti-ve Lass pilot pr~r~gram 16 authorized acr~~de7- section 1361A of th,e Natio~tal Flnod, Iri- 17 sura~n,ce l~ct of 1968 (42 U.S.C. 4102x). 1 S SEC. 131. FLDOD INSURANCE ADVOCATE. 19 Chapter II ~~f the National, Flood I7~sv.tra~~,ce l~~ct of 20 1968 is aimended by inserting after section 13.30 (42 U.S.C. 21 40!1) the,following new section: 22 "SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVO- 23 CATE. 24 "(a) FSTAP,LISFI1VIEt~%T OF POSITIUN.- •FUt 3i2i Fas 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J~ "(1) L~ GENERAL.-There shall be -ir- the Federal Enrergerrcg ~lla~nage~n-e~nt f~ge~r-c,-~ au Off%~,ce of the Flood Ir-su~rar-ce Advocate ~-t+lz~ich shall he headed bg the Na-tior-al Flood Ir~rsu7°auce Advocate. The ltiatiorral I+~lood hrrs~ti~ra~r-ce Advocate sh,all,- "(A) to the e:x~tent amou~tits ay°e provided p~-crs2~aut to s~-tibsectio~rr (n), he comp~e7~rsated at, the same rate as the highest rate of basic pag es- tabl,~ished fo'r the b~'enior Exee~ut,ive ~~~e~wiceunder secttio~rr 5382 of tatle 5, I,'n~eted States Code, or, if the Dig°ector so deter°rn~enes, at a rate fixed wader section 9503 of such title; "(B) be appoir-ted b.g t1~e Director ~rvitho2-.t regard to pol~i,tierr,l, gffi,li,at~i,on; "(C) ~repor-t to a~r-d he under the genera-l su- pervi-si,ou of the D-irector, b-ct shall not rPpm~t to, or° be s~~h~ect to supervision b2~, a~n.z~ other off-i,cer° of the federal Eme~r;gerzcg ~'~Lanagemerl,t 11ger1,c1~; a~r-d "(D) consult with the Assistant Adm~inis- trato~r• for ?V7itiga,tion or ang successor thereto, but sl2all not report to, or be suUjeet to the gen- eral. s~upe~rvis~orr bg, th,e Assista~~-t Ad~rn~ereistr°ato~r foj° ?~hitigation o~r rxn.g successor thereto. •HR, 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (~ 0 "(,~) (~L'f1LIFIC~ITIONS. ~l~rl ind~ivid2cal ap- poi~nted under parag7°aph. (1)(B) shall h.a,ve ~ hack; ~ronnd i,~r~, c2tisto~rne~i• service, 07~• expe7~•~i,ef~u•e ~~•ep~resenti.f2~ ~i,rtsui•eds, as well as experi,e~nce i,rti i7~~-vestigati~rns or audits. "(3) RESTRICTION UN E:VIYLU~~'12ENT. ~ln indi- vtidual may be appotinted crs tltie National Flood In- s~arance Advocate only ~if such individual, 2vas not an gffi,eer o7~ employee of t1~e Fede~•al, Emergency ~l7ana;ge- anent Agency with duties relat~inq to the national ,flood ti~rzsura~raee prograrn durin,q the 2-year pe~~°~iod ending with such appovntni,en.t and s2~ch iridividi~.al agrees not to accept any e~mploynaent ~tc~ith- the Fede7°al Ente~rgeru~y 1Vlanagenreri.t 1lgency .fbr at least ~ years after ceasing to be tltie National Flood Ins~tirance Ad- vocate. Se~~•v~.ce as an employee qf' the ~l%ational Flood Irasu~r°ance Advocate shall not be taken i,n-to acco~cnt i,rl- applyang this paragra~r~h. "(~) b~T~1F'F.-To the extent am,v'nnts a7°e 7~~°u- vided pu7°s~uant to subsection (n), the National Flood, Insu~7°ance Advocate naay employ such, peg°son~nel, as ~m,a-;r~ be necessary to cap°ry out, the duties of the Office. ,.. ~ INVF1~FNVFwcE.-The Directo~° shall not preve~zt o~r p~roh~ib~it the National I+'lood Inswr~ance Ad- vocate fro~rn initiating, carr~yi~n,q oir,t, o~r contipleti~nq •HR 3121 EAS E~ 1 1 arty audit or i~uti~est~gat~io~ra, o~r fr•o~rra issu~i~rag array sub- 2 poe~na, or s2crrarrao~ras duri,rig the course of ar~y audit o-r 3 i~ravestu~atio~r~. 4 "(6) RE~oTIiL.-The ~a-es~i,de~rat and the, Di,recto~° 5 syaall daave the tower to a°erraove, disclaarr;ge, or d~ism,iss 6 tlae National Flood Iusaararaace Advocate. 'Vut later 7 than 15 days after the removal,, discharge, or dis- 8 missal qf' the Advocate, the President, or the Director 9 shall, r°epo~°t, to the Committee on Banking qf' the ~.~~en- 10 ate arnd the Conarrtittee on Financial Serywices of th,e ll House of Repr°eseratatives on th,e basis for such re- 12 ~raoval, d~ischar;ge, o~r disrynissal. 13. "(U) Fi~wCTro?vs of OFFICE.-It shall ve th,e furictiora 14 of'the Office of'the Flood Ins~ararraceAdvocate to- 15 "(1) assist ~-nj~ure under the national flood insu~r- 16 a-race p~rog~ra~rra in ~•esolvi~ng t~rohlenrs ~reith, the Federal 17 E~rrae~rgeracy l~Tanagerraerat Age~aacy relating to such ~r~~ro- 18 g~r°arm,; 19 "(,~) identify areus in, wl2,ich such inj~~are have 20 ~r~roUle~ms in decdings with the Feder°al Emergency 21 ~l7ancrgement Agency relatenq to such proc~a°am; 22 "(.3) p~°oyose changes in t11.e administrative yrae- 23 tices of the Federal E~raergeney ?l7anagement Agene~y 24 to ~a~aitigate protile'nas ident~if ied urade~r pa~ra~~raph (,'~); •HR 3121 EAS 6 1 "(4) ide~ritify poterat2al leg'islat'ive, adryrztiriist~ra- 2 twe, or ~°eg2clato~rl~ cha~rzges ~1z~h~ch- ~rrra,y he approt~r~.ate 3 to mitigate s2~ch p~rohler~rs; 4 "(.~) c~rr~dz~ct, sz~pe~jwise, an,d coordi,~ruxte- 5 "(11) s~~ste~rrratic an,d ra,rrdon~, a,~cdits arrd ~r'~n- 6 vestigatio~rrs of ins~z~~rance co~n~anies ary~,d assocti- 7 aced entities that sell, or offer ~~olicies ~itnder the 8 National blood Insurance Program to determ~ene 9 whether such insur°a,nce corn~a,nies or associated 10 entities are allocat~ang onlg ,flood losses under 11 such ~ins2cra~r~ce policies to the National I+'lood In- 12 su~rwnce Pro~~°a~n; and 13 "(B) a~rr.dits and i~nvesttigations to deterrr~~erze 14 ~f an, i,~nsu~rrarice carrl,pa~ri.~ o~r associated eyttitz~ de- 15 sc~•ihed u~rade~r suhpa~ragr-aplz (A) is ~negotiatir~g 16 on 1~ehalf of t/tie Natio~rtiaG Flood Ins2~i°a~raee Y~r°o- 17 grarrr u»,th thvrd far°ties i:n, good faath; 18 "(F) cond~trct, s~«pervise, and coo~r•d~i,7ru,te inves- 19 tiyations into the ot~erations of the national flood i~r- 20 surunce grogram for the t~~tcrpose qf= 21 "(~~) promoting econom-h and ~fficierlc,~ ~n 22 the adrn~~nistration of such, ~~~•ograyn; 23 "(P) p~r~e~r~e~r~ti-rig acid detecting , f rand a~rul 24 crU2rse i~rl the p~ro~rayri; avid •HR 3121 EAS f~3 1 "(C) ide--t~ifyi~r-g, c~rtid referrer-,q to the Attor- 2 r-~e~~ Ger-eral ,ti~~° prosecution-, cvr--~ pa~r~t-icipa-rat ~i-~- 3 such f~ra,ud o~r ahnrse; a,r-d 4 "('%) idPr-,ti.ti~ a~r-d inzvestigate conflicts of ~i,n-,te~rest 5 that u~ride~rnr-.in-.e the eco~r--o~rr~;~ ~xr~d Nf fic~er-c~~ -~f the r-a- 6 t~i.onal,flood i~nsnrauce program. 7 "~c~ AliTHORIT~' Uh' THE N41'IU~~ FLOOD I~VSt%R- 8 a:vCF AD1~OC~TE.-Th,e Natiunu,l I+'lood Ins~t~n°cr,nce Advocate 9 ~ma~-,~- 10 "(1) have access to all records, reports, audits, ll reviews, doc~-cmze~r-ts, papers, recomn-endatio~rtis, o~r° 12 other rnate~rial avccilahle to th.e Di~recto~r° which relate 13 to ad~rntir~i~istrationz or operation of the n-ation-al.flood 14 ~r.n-s~u,ra~r-ce progrann -vi,th respect, to -vhich. the Nation~d 15 P+lood Ins~tirance Advocate has r°esponsb~i,l,~it~i,es i~~-id~r 16 tltiis sectio~rz, i.n--cl,-tiding info~j-nrzati-on su.hrr--i,tted p-c~-su- 17 an,t, to Section 1,38 of this Act; 18 "(,?) -Unde7~tcrke such investigations a~-.d reports 19 relati-ng to the a,dmi.n,istration ur operation qf' the na- 20 tio~nul flood insurance program as are, in t,Jtie ,judy- 21 ~ment qf' the National, flood Insu-°ance lidvocate, nec- 22 essarg or desirable; 23 "(3) n•e~~uest such in formation o~-° assistance as 24 ~na;~ be ~-ecessar:J .f'o'r car°r-~i~ng o'-~-t the duties a~--d r°e- 25 sponsibil~ities provided b,~ this section ,f~~onr-, ~n;y I'ed- •HR 3121 EAS 64 1 e~ral, State, or local goner°~-rr-er-tal agency or u~rutit 2 t,1~.e~r~eof; 3 "(~) ~requ.est the p~•oduction of ~i-r~,fornaa,tio~r-, docu- 4 rr-e~r-ts, ~r~et~o~r°ts, ar-s-vers, ~~°eeo~rds (i,~ncl~udi,r-,g ph~r-e 5 records), aecou~rats, ~r~ape~~°s, e~m.~a,~ils, hard d,~~~i,ves, 6 back~rtip tapes, software, a~-td~io or ,z+isual, aides, and 7 any other data and doc~umentar;-~ evidence necessary 8 in the performance ~f the ,f~-,nctions assigned to the 9 1Vational,l+'lood Insurance 1~dvocate by tlv~s sect, ion; 10 "(5) request the testirynony of any person in t1i,e 11 employ of a~~ay ins2tirance contipa7~y o'r associated e~i~~t~- 12 ty pa7-ticipatirzq en th-e 1~'atianal flood I7~is~ura~r-ce 13 Program, desc7°ibed tc~nde~r subsection (b) (5) (~~), or a~r- y 14 s2rccessor to s~cch, cornp~tny or enti,t,y, i.~~clu,-ding a-ny 15 ~r-em-ber of the heard of si-clti conzpan.y or e~-,tity, ar-y 16 trustee of such coryrz~a~rzy or entity, an-y par~~-ae~r in 17 such company or entity, or any agent or ,j°epreser-,ta- 18 tine of's~uch com~~any or entity; 19 "(F) select, appoint, and employ such ~~fficers 20 and employees as may be necessary for carry'eng out 21 the functions, powers, and duties of the Office subject 22 to the prov~asaons of tale 5, Zln~~ted States Code, gov- 23 e~r°rcir-.g appo~rr~tme~rats in th-e corr-petit~ive service, and 24 the p~r•ovisions of chapter r51 and subchapter III of •HR 3121 EAS 65 1 chapter 53 qf' sicch title relat~cr-~~ to classification and 2 General, ~~chednle pag rues; " % ohtai~- sc~rv~~-ces as a,ut, urr•2ze r-~ sect,~,o~~- 4 31 UJ qf' tale ~, t'r-~i-ted States Code, at dailg ~°ates r-ot, 5 to exceed the eq~ui.valerd rate p~~°escr~~i,bed for tl~e ~~ate of 6 has~i-c pad for -~ position, at level, IV of tJtie Exec~tUti,~t-e 7 Sched~de; and 8 "(8) to th,e extent and tin sue12 amo~.tints as ma,g 9 tie provided in advance btu appropria,t-cons ~~cts, enter 10 into contracts and other arrangements for audits, 11 studies, analgses, and other se~-w2ces with public agen- 12 cics a,~~-d ~rti~ith p~-°~ivate pe-°sons, and to make such pa2~- 13 ~r-e~r~-,ts as r-aa~~ be ~r-ecess~zry to carry o2r,t the provision-s 14 of'this section. 15 "(d) ADDITZOI~'~1L DUTIES' of TxE NFIA.-Th.e ~L'a- 16 tiar-al Flood Ir-su~r•a~r-ce Advocate sdtiall- 17 "(1) rraonitor tlLe co've'rage a~r~d geograpl-;i,c alloca- 18 tion of reg~i,o~na,l, gffices of',flood, i~ns-t.r~n,ce advocates; 19 "(,2) develop g~-~idccy~,ce to be distribv~ted to all, 20 Federal, Emergency Management ~lgenc~ gfficers and 21 emplogees having duties with respect to tltie national 22 .flood ins2tirance p7°ogram, outlining the c7~•iteria,for re- 23 ,ferral of Lnquiries by insureds under such program to 24 regio7~-al qff"ices nf'.flood ~t~is~u~rai-ce advocates; •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 66 "(3) e~zs2~~r~e that the local telephone rl2~~rrabe~° for each. ~°P~~i.o-real, nff~i,ce of th.e flood i~ris2~-i°rxryi~ce rr,~lvncr7te ~~s pnbl,~ished a-std ava-~lahle to s~,~ch, ~i7~~sa~.~rer~s se~~~ed (r~ the ofBice; a,~r~d "(4) establish ternpora~rz~ State o~r~ Gocal obi-ees ~a here necess~~r~~ to meet the r~,eeds of ~t~.ahfi,ed in- s~~creds fullo~auing a flood event. "(e) OTHER REb"PO~Vb~I~ILITIEb".- "(1) f~DITlON.~L REI~UIREI~7ENTb' REL~1TINl~ TO CERT~IIN 4UDITS. Prio7° to conducting any audit or ~i~rl,vestigatio7i relati~~tig to the allocat'io'n of flood, losses under subsect~io~n (b) (5) (~~, the i'Vational 1+'lood InS26T- Wince Advocate ~rr~aczy- "(11) co~ns~~lt with, app~ro~riate s2~hject,-n~,at- ter e:xpe~rts to identif~~ the data necessary to de- tery•rrr.i:r~ewhether flood clavrrrs paid b~y insurance carraparr.ies o'r associated ent~it~i,es on, behalf tltie ~fzatiunal.flood i;ns~itirunce program, 7°~flect darn- ages ca~r~sed b~,flooding; "(B) cdlect or compile the data tidentified in subpara,,graph, (A), 2ctiliz~ing e~c~isting data sou~•ces to th,e maxi~n~zc~yn e~r~tent 1~'y°acticable; and "(C) establish, policies, procedures, end guidebi~nes.for application of'such data ~erti all au- •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 f~ 7 Bits and 2~ivest~i~at-ions authortized zr.~~ic~e~r th,~s sec- tion. «~,~ Av~rL'~L ~EPOKT~S~.- "(~1) dCTI['ITIE~S.-1Vot later th.arr, Decerrrhe~° 31 qf' eaelr calendar dear, the Na,ti,on,al, Flood I~rr-. s~icrance Advocate shall, report to the Committee o~n I~anktinr~, Ho2~sing, and Urban affairs of tltie Senate arid, th.e C~~m~mittee. on I+'~ina~ncial, Ser~rices of the Honse of Representatives on the aet~ivities of the Office ~~f' the flood Ins~,Ura,~nce Advocate dwri~rlg the fiscal ~ea~r er~ad~ing during such cal- e~f~ida~r ~ea~°. ~n~~ such, ~°epo~rt shall co~ntatin a ,full and substartit~ive anal~s~is ~~f sicch activities, iii a,ddit,~i,on fin strr,tistical, ~i~r~ forrynatinn, af~~d sh,al~ "(i,) tidevi,ttfy the ~i,ni-ticrtives the Office of t,{1~ 1+'lood Irrsu~r•a~rtice Advocate has tal~en on i,nrprov~i,ng services ,for i,r~~sureds wider tl~ national, ,flood ins~r~7°ance ~r~ro~~r°a~rn and restwnsiweness uf' the Federal, Eme~r~~enc1~ Management Ac~eney nrith respect to s~.~ch initiatives; "(i~i) describe the nature of rec- orra~rne~~idations ~rzade to the Director ~rti~nde~r subsect~io~r2 (i); •HR 3121 EAS fib 1 "('iii) eontai~ri a surr~trna~ry of the most 2 serious prohler-zs er~co2r-ntered lry such. i,n,- 3 sztreds, ~i,rlel~ztd~ing a desc~r~iptiorti of the ~nat~ure 4 of such ~~r•ohle~ri~s; 5 "(iv) corr,tain an i~rtiventoy;1 4f~ and 6 items described i,n clauses (i), (ii), a~l.d (iii) 7 for which action h,c~s ~ee~n taken and th,e re- 8 salt q f' s2~ ch act~io~n; 9 "(v) conta,i~n an inventoi°y of any 'items 10 desc7°~ibed in clauses (l), (i.i), and (iii) for 11 u~h~ich action ~re~rna~irtis to be completed a~rzd 12 the period during ~wh,icl2 each, 'item has re- 13 ~fraairled o~n such i~ravertitory; 14 "(vi) co~ratain an i~nwento~°?~ of an y 15 ~ite~~ras desc~r-ibed in clauses (i), (i~i), and (iii) 16 ,for which, no action h,as been, taken, the t~e- 17 ~°iod, dit~°inq which each ~i,te~rn, has ~~emained, 18 o7a such, inventorg c~n,d the rectso~zs for the 19 inaction; 20 "(vii) ~de~ntifz~ an~~ Flood Insurance 21 f~ssistance Recommendation wh,~ich uurs not 22 ~°es~onded to U~~ the Director in a tirnel~~ 23 IYG(~Il~i1e'Y' Or ZUas %lot foll02l'ed, as s~ee'Gf2ed 24 ~tcnder~ subsection (~i); •HR 3121 EAS fi 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 •HR 3121 EAS "(vti~i~r) co~r~ta~i~r2 ~reco~ni~rie~r-datio~~s for sz~.ch, ad~rr~~zrlistrati,ve a~rld legislative act~,o~n as ~ry~a~g he a~~ro~~•2,ate to resolve prohl~rr~zs e~ri.co~tir~~te~~°ed hid sucdti ~in-s2~reds; "(~i.:z) 'i.de~rat~if2~ areas of the, law m~ ~r•eg~u,- latzons relat~,~ng to tl~ natio~ial, .flood i~~tisttir- ance ~~rogram that im~~ose stign,ifica;rtit com- ~~Lir~nce burdens on s2~ch ins2~reds or the F'ede~°al, Erynergency 1Vla,nagement ~lgenoy, including specif2c 7°eco7nmendatao~ns for reyn- ed~~~i~ng these p~~°oblerr~s; "(~;) idery~tify the ~rrzost d~~ttigated issues for each category of's~t+ch insureds, 2raclud~~ng i°econi~rr-,endattio~ns for n~a~it~i,gati~ng such ~~is- ~~u tes; "(xi) ~deri,t~ify ways to E~ro~mote th,e ecou~n~y, eff-~ci,enc~, a,~j~.~l Pffect,~wen.ess ~iri. the admi~2~istrat-ion of the national flood inst~r- ance ~rr~gram; "(xii) identi~,~ fraud and abuse in the -national flood insurance ~roya°am; and "(.x;i~ii)include such othe~° info?°~nation as the ~'~-atio~~~al Flood Insu~r°ance 1ldvocate rraay dee~rn advisable. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 70 ``(B~ DIRECT SliR3IL5b~70N OF RF•PORT.- Each, ~r•eport,required t-~r-der this pa,r~-~raph sh-all lie ~r•ovided d,~i,-•ectbB to the coryraneittees ide~r-tif~tied, ~i.~~- sub~~a,~rag-.aph (~l) ~w~thol,~t ~r-.~~ p~-°~ror ~r~•e2~~ie~ty o-° co~rr-r~~e~r-t , from the Di,-°ector, the Sec~r~eta,-°~~ q f H--melc~f-ct Seetcr~t~~, or an-?~ other officer or em,- ployee of the, Federal, Emergency ~tilanayeryne t ABenc~~ or tl-,e Department of Ilon-eland Secu- rity, or the Off"ice of'?Ilana-Bement, and B2~dget. "(3) h~F'OR~bI~1T10N ~~1VD ~~Sb~IST~NCE ~'ROY1 OTHER ~GENCIES.- "(~) I~~~ l~E~~%ERAL.-Upon -request of the ~'a- tio~r-al Flood I-asu-°a~--ce Advocate for inforr-aat~ion or assistance --n.der this section-, th.e 1-ead nf' ~-~,~~ federal ~r.Be~r-c~~ shall, insofar as is practicable ar-d ~aot i~a con,t-•aventior- of any sta,ta~.tm;y -•e- strlction or -°eBu.la,tio~n, of th,e Federal age-~acy from, wlzicl- tl-,e, vrt Tory°m,at~,on is requested, , f--~ r-ish to the National Flood I-zsurance Advocate, or to an a,r-thorized designee of the Notional Flood In- surance, Advocate, such ~lnformation or assist- ante. "(B) RFI't-.S.~L Tn C~~~~rPLY-u~,e~never ln- fo~~-~raatiou or asslsta~nce i°eq~-ested ~undey~~ tltiis s2cU- section as, in the j~tr,dgr--er-t of tltie Natior-al P+lood •HR, 3121 EAS 71 1 Irisura~nce Advocate, z~,rrreaso~nably -~eti~sed or rent 2 provided, th.e Navinnal F'lnnd Ir~surar~r~e ~ldvocrrte 3 shall r-epn~r~t the c~ircunista-rues to the Directn~y• 4 uitlwut delaz~. 5 "(t) C~~~~l~~Lr~~:vcr l~Vlhll GAO 51~~1VDdRDS.-Irti ca,~r•- 6 rying nut the respu~-is~ibiliti,es established ~z~n,der this secti,of2., 7 the Natioztial Flood Ins'«7•~~tice ~~dvocate shall,- 8 "(1) compl,~ with, sta-ndards established, by the 9 Com~r~troller Genes°a,l of the United States ,for a,u~lits 10 of Federal establishments, orc~an~izations, p7°ngraYns, 11 activities, and fu~rut~ions; 12 "(`~) establish ~~1~,ideLirties for dete~rneininy ~t~~he~rl it 13 shall be appropriate to 2~se n,on-Federal au.ditor~s; . 14 "(.3) take apps°npriate steps to ass~~,re that any 15 ~unrk pe~rfnrryned by non-Federal, a~cdi-tors cnniplies 16 nrith the standards established b.~ td2e Con~iptr•oller 17 Ge~rreral, as desc~~°ibed in paract~°aph (1); and 18 "(!) take the rrecessar?9 steps to ~rni~nirnize the 19 p~acblication of propr•ietarp and trade secrets informa- 20 Lion. 21 "(q) PF.RSON~tiF,L f1CTIO~IrS.- 22 "(1) I1v GEwER~r,.-The National, Flood Ins~ivr- 23 ance, Advocate shall have the a°esponsib~ilit~ and au- 24 thn~r°ity to- •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7~~ "(A) appoi~ret ~•egior~al.flood iris2~,r•car~ce ad2u~- cates iri a, niarvrie~r that, tv~i-ll, p~rn2±ide apprnpr~•iate cover-age hased upn~~ r•eginrial, ,flood irtsl~~r•a-ru°e pr•og~r°arra ~r~art~i.ci-pat~ao~r-,; a~rtd "(1~) h~i,y°e, eval~aa~te, a~ri,d ta~;e ~r~e~°so~~~ reel ac- bons (~-n,cl~~~di,nq dismissal,) with res~~ect to an~~ em~~lo~~ee of any re~~iona,l gffice of a flood tins~~~r- a~nce advocate described tin sub~aragrag~h (~). "(~) COl'~~b'L'LT4TION.-The ~l'ationa,l Flood In- s~urance ~dvoeate n~aa~ considt w-ath, the appropriate si~tpe~~~,+isory per°so~~ti~riel of tltie Federal Eryr~e~rge~nc2~ ~12an- age~ne~lt f1ge~~lc~~ i~n carp°~~en~ o~~,t the 1~'atio7lal blood Insura~r~ce Advocate's ~resp~nsibilities u~rtider tltiis sub- secti,nn. "(h) OPERf1TIO.N OF RE'GIO:I~AL OF'1+'ICE~4.- "(1) Lv ~~F.~~FR.~tI,.-Each regin~na,l, ,flood ~zns2ci-- a,~nce advocate appointed pttrs~tiant, to suhsecti-n~n (d) "(d) shall, y°epoi~•t to tlw Natio~n,c~l, P+Inod Irl,- srcra~zce Advocate or delegate thereof; "(I3) ma;i~ constclt with the appropriate s~t~- perv~~so~ry personnel, of the I+'ederal, Emerr~enc.~ ~~1anagement, Agenc~~ ret~a.~r°ding the daily open°- ation of the 7~•egional gffice of t1ae .flood insurance advocate; •HR 3121 EAS 73 1 "(C) shell, at th,e ~Lr~ittial naeet~irtg ~l.uith orgy 2 ~i.nsu-°ed t~~ru~e~r th.e nat~tioyial, ,flood ~;ns~.~y°ance p-ro- 3 ~~ra,rri seek~~ing the assistcr,~~iee of a ~r-eg~aoncd office 4 of th.e .flood i~~sn~rarace advocate, ~r~-ot~iti~ sack irz- 5 suj°ed tyr.at the ,flood ~i~nsu~°ance, advocate offi,~es 6 upe~j°ate indepe~~,dez~titl.i~ of and otl~r Federal, 7 Emer~~enep iVlanagement Ageneg~ office and re- 8 port, directby to Congress thro2~gh, the Nu,t~iona,l, 9 Flood, Insu~°a,nce ~~dvoca,te; and 10 "(D) mazy, a-t the flood insurance advocate's 11 d~iscret~iora, riot disclose to the Dig°ector contact 12 with, o~r info~~°niation provided by, sae11, a~~zs~~~red. I3 "~~~ ~~1AINTE~tiA:VCE OI' I~tiDEPENDE~I~T C0~'~11IU- 14 .~7C~1TIONS.-Each reg~i,or~~a/, offi,ee of the flood vnst~.r- 15 a~nce advocate shall ~na,intrr,i~r~~ a separate phone, fac- 16 sirnle, and other eleet~y~o~r~,ic cmrrrrzu~nicattio~n access. 17 "(i,) FLOOD h"~ti~L'R~1NCE AS~~~T~~~T~~l'CE RECOIVI~1LElrD~l- 18 TInN.~~.- 19 "(1) ~li'Txoxr~ To ISSUE.L pon r~pphcat,~io~n 20 filed Ug a q~acalified ins~a~~°ed 2vith the Office of tltie 21 Flood Insurance dd,vocate (in such form,manner, 22 and at, such time as the Director shall, hg requlat~~on 23 p~•escribe), tltie Vat~ional Flood Insurance Advocate 24 ma2~ ~~ssne a Flood I7is2tira~ace dssistance Rec- 25 o~mYnendation; ~~f the Advocate finds that the qualified •HR 3121 EAS 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ire-snr•ed is syffer°i~y~g a sigrylificarnt hardship, s2rch as a sig~n,~ifca-~r~t delay i-~n- resolvvn~g clairyns «+h.ere the -i~n- sured is ~i,rrcu~r~°i.ng sigr~~~-f~.cant, casts as a ~•esltlt of s~~ch delay, o~r wlwre the ins~ttir°ed is at 7~isl~ of ad~t~e~°se uc- tion, ~i,~nehtd~i.~rt,g the loss of property, as a -result of the ~rn,a~iner ~in which the ,flood insurance laws are Uei~~ag administered by the Director. "(~~ TER~VIS OF ~ FLOOD INS URIINCE ~lb'SIST_4NCE RECO~l~I1V1E~VDAI7ON.-Tltie terms qf' a 1+'lood Insurance assistance Recr~rrz~rnendation may ~•eco7nmend to the, Director that the Director, within a spec2fied t~iryne, pe- riod, cease a~ni~ act~o~rti, to-ke a-~22~ action as per~n~itted by la~~c, or refrain ,f-~~o~rr~ taking any acttion, ~ncLud~i~r2g the pa;i~n~,ent of clai,nis, with ~°espect to th.e ~~ra~l~~f~,ed ~i,nsured u~r~der a'n'y other pro~t~-is~r'on. of l,~w u>hi.ch, s specif-ica,ll,.i~ descr~,hed by the Nat2.oy~al I+~ood I~zs~cra,-7ce ddvocate ~i,~ti suclti ~~°ecorn~rnenda,ti,o~rti. "(.3) DIRF,CTOR REb'YOwSE.-Not, later than. 15 days afte7° the receipt of any Flood Insura,~~,ce <<~ssist- ance Reu~mmendation ~atnder this s~.Ubsectio7ti, the Di- rector shall, respond ~in writing as to- "(~l) whether such reca~mmendat~ion was fol- lowed; "(~) u~h,y such, recornnie~ndation 2t~as o~° was not , follo~tc~ed; a~j~zd •HR, 3121 EAS 75 1 "(C) r~~hat, 'if a~ni~, «dd~it~iorial aetiorl~s we~~°e 2 take~ri, b~ th.e Director to p~rever~t the h.ardsh-ip irl- 3 d~i,cated ~i,~rr snr•h ~recomrnendatu~r~. 4 "(~~ PE~4P0~~'sIBILITIF~ti~ OF DIPECTOR.-Th,e D~i,- 5 rector shall establish ~~rocedures re~~2~~i~r~ing a foi°rr~al 6 res~o~~tise consistent with tltie re~~t~ire~rne7~,ts of ~r~ara- 7 g~ra~h (<3) to all, recommendations s~~cbmitted to the 8 Director by th.e Na,tiona-l, flood Ins~cra,nce ~1d~LUwate 9 unde7° this subsection. lO "(j) REPORTING OF POTE~VTI~iL CRI1VIIi~~~I. VIOL~1- ll Tzo~~'S.-In ca~rr°~~i~~tig o~tt th,e duties acid respar~sibtil~ities es- 12 tablished icrider this section, the ~l c~tiorlal 1+'lood Insurance 13 Advocate shall report e~;peditiously to the ~4tto~r°neJ Ge~rzeral 14 rvhe~~ever the National, 1+'lood IYbSlGrance ~ldvoc~xte hers ~°eer- 15 sonahle gro2~n,ds to believe th-ere has been a violat~ior~- of'I'ed- 16 oral c~r•inr~irl-aC lau+. 17 "(k) COOr~PI~ti~1TION - 18 "(1) 1~~ITI7 O'L'IIER FEDFI~~LL ~~UE!'~'CIES.-I~r1. car- 19 rying ott-t the d~uti,es an,d res~~unsibil~i,ties established 20 urtider this section, the National, I+'lood Insurance ~ld- 21 vocate- 22 "(~~) shall give particula-r 7~~ga~•d to the ac- 23 tivities of the Inspector (~ene7°al of tlw Depa~~t- 24 ~rraent qf' Homela7ad ~S~ec2~rity with a v2ew toward •HR 3121 EAS 7 E~ 1 avoti~Ii~ng duplicc-ttior- and ~irtisu,~r~ir~~ ~ff"ect~ive co- t orcl,~i,r-~at,~i,o~r-, a,nd cnnperation; ~~~.nd 3 "(B) r--ay pa~~ti,c~ipa,te, ~-cpo~n -•e~~uest of the 4 I--specto~r Ge~r-eral, of the Depa~rtrrr-e~rtit of Ho~rr-,e- 5 la~r-,d Sec2--°~ity, t~r~-, any a~ud~i,t o~r i;~-.vestigatio~n, con- 6 d~TCCted by tltie Inspector General,. 7 "(~~ WITH STATE RECL%LATORb'. In c~zrryiw~ 8 -~-~t any ~i,nvest,~iyation or audit ~l~nder this sect,~ion, the 9 iVationa,l I+'lood Insurance ~ldvoca,te shall coory°dinate 10 its acttiv~ities and efforts with any State insu~°ance au- 11 thorny that as co~rtic~Ur-°e~ntly u~r-der~tak'brzy cc siua~ilar or 12 related i~-vestigation o~r a~ud~~t. 13 "(3) L~VOIDAiti CE OI+' RED U~VD~IVCIES I~'4' TIIE RES- 14 OLGTION OF PROBLE~ti1S.-In ~~°ovidiy-g ar-y assist,- 15 ante to a poll-c~yl--oGder p-~rs~~a~nt to parag~r°aphs (1) 16 and, (~) of suhsecti,on (b), tltie ~'atinna,l flood h-s-ti~r- 17 an-ce 1ldvocate slurp consult ~witll, the Director to 18 eli~rni~nate, avoid, or i°ed--ce an.y red~u~ndancies i,n ac- 19 ti.ons that 7n,uy arise crs a 7°esltlt, of the actioms of the 20 National flood Ins~uraince fldvocate and the claims 21 appeals process described under section 6'2.20 of tithe 22 44, Code of federal Rec~~tdations. 23 "(l~ ~1 L'TFIORITI' OF THE DIRECTOR TO LEPF PEN- 24 ALTIES.-1'h.e Dlrecto~r° rind the ~~dvocate shall establish p~-~o- 25 ced~ztires to take a-ropropriate action ayai~~-st a~n er-sura~-ce •HR 3121 EAS 77 1 corrt~an~, vricludi~ig ~nto~r~eta~ry perialt~zes a~rid rer~~oval or 2 suspe~r~s2,orz f'rorrt the ~roq~ra~n,, ~tuh-en ~ cor~l~a~n~ ~~°efi~ses to 3 coo~e~~•ate ~t~~~tlt a,~rl ~i.rlvest~i~~atior~, m- audit under tlr,is section 4 o~r ~whe,re a.fi~r~d~i~raq h,as heer~, made of ~i,nr,p~y•ope~r con,d2~ct. 5 "(ryn) DEI+'1~171'10~ti'S.-b'o~° ~r~~urposes of this s~i.~bse~ctiori,: 6 "(1) ~lssucr~TED ENTITI:-The terra `assoc~,ated 7 ent2ty' means an;~ ~~erson, cur~~orat2on~, or other legal, 8 ent~it,?~ tha-t contracts tivith the D-hector or an ins7cr- 9 anee compa,~n~~ to provide au!92~-stment, se~°viees, henef2ts 10 calculation se7°vices, cla-ems servtiees, p~°ocessing ser2,~- 11 aces, or record keeping se'rv'ices i~n co~nnectio7ti i~~it11, 12 sta,~~l-da,~~d flood, er~sura~nce poLic~ies made availaUle 13 under the rzat~ior~tial flood i~nsu~~°anee prog~ra~ra. 14 "(~) INSURANCE UOMPANI:-Th.e term `ins2i,~rrance 15 coni,pan~' refers to an~~ ~ropert,~~ and cas~t~alt~y ~ins2~r°- 16 ance conr,pa~r-y that ~is a2~-thor~i,zed lr~ the Directo~r• to 17 participate ~-n the tier°~ite Your O~urn prog~ra:ni, t~~~~de~r~ 18 t,1ie ~tiat~i.onal, . flood ins~r~cra~rt-ce ~~°o~ram-. I9 "(3) 1~4TION 1L FLl)l)D INSURANCE ADti'OC~TE. 20 The term `Nutioryaal, I+7,ood his~urunce advocate' in- 21 eludes and designee of the ~1ationa,l I+'dood Insu~~~ance 22 Advocate. 23 "(~~ ~~T-ALIFIED I~tiSURED.-The te7~~~rn `q~tcalif~ed 24 -ensured' means are i7~sur•ed unde-° eove~~°age provided •AR 3121 EAS 78 1 under the ruzttio~r~al ,flood ~d~rtis~i~~ra~rtiee p~~~ograrn ~t~r~de~r 2 this t~i,tle. 3 "(ri) ~~U~1)It~"G.-P~t7•s~.ca~rit to secti-o~ri, 13100)(8), tltie 4 Director rr~ag t~se anro~u~r~ts,f'r°o~rrR the National, 1+'lood Ir~su~r•- 5 artice 1+'u~rid to fi~~ri.d the acti,vi-ties of the Office of the Flood 6 ~2dvucate in eaclti gf,fiscal ~~ears 200J thro~iu~h ?01!, except, 7 that, the amo2~nt so rased i~n each s~tu;h,fiscal, gear ma,~ ~~TOt, 8 exceed X5,000,000 and shall, remain avaala-ble until, ex- 9 pended. ~~'otwithstanding any other provision of this title, 10 amountsmade, available pug°suant to this subsection shall 11 ~r~ot be subject to gff'settiraq collections through ~rem~iun~~ 12 7°ates for flood insu~°ance coverage under this t~~tle. ". 13 SEC. 132. STUDIES AND REPORTS. 14 (a) REPORT Ow ExP~wr~IVC: THE NATIONAL FLOOD IRr 15 SURAl~'CE PROGR~'Vl.-Not la,te~r than 1 ~~ear afte~y° the date 16 of the er~,actnae~n,t of this title, the C,n~rrrpt,rolle~~• (se~r-e~ral of 17 the United States shall cond~~ct a st~z~d~~ a,~~d submit, a repo~~•t 18 to the Co~rnm,ittee on Ba~nkin.,q, Ho~tcsin-g, and Urban 1~lffa~i,i.~ 19 of the Senate and the C'omm.i,ttee u~~ Fi-~tiancial Services of. 20 the House, of'ReC»°esentatives, on- 21 (1) th.e n~z~mber of flood insurance potic;~ holders 22 cu,7°rentlg ins~tcrwng- 23 (f1) a res~ident~al structi~j°e up to the ~max- 24 lrn2vrr~ available eove~~°aye aryao~ZCr~t, as est~zbl~ish.ed •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 79 ti~ri seettio~n 61.6 q f title ~4, Code qt' Federal Reg2~- I,atu~j~s, of= (i.) .~ 250, OOO , fo~~• the st~•uct2i~re; aril (~i-ti) ~S10U,000 fo~-° the co~r~ter~ts of~ such stractu7°e; o~r (B) a c~~namerciul str~~ct,~i~~re ~1tip to tl2e ~m,ax- imum available coverage, amo~t~nt, as established i~n section 61.6 qf' t,-itle 44, Code of Federal, Regz~- lations, of $500, 000; (`?) theincreased losses th,e National Flood Insur- artice P~°oq~ram. u~o2dd have susta~i~r~ed d2~r~ir~g the 2004 a~rtid 2005 h,i~~~°~°icartie season if t1~e National Flood In- surarl,ce P~°o~j°arra had iryasi~-red all, policyholders up to the niaxirr~~~ryn, cor~fo~°~rrzi~r~g loan li~rr~~it far f2scal, ,year 2006 of X11,000, as establ,~ished u~ridPr seetnn 3U2(b)(,~) of" the Fede7~~al Naturr~-al Mortgage ~lssoc~i,a- tio~r~i Charter Act (12 U.S.C. 1 %1 %(b) (.~)); (3) the availabil~.tlt ~in the ~rtvate marketplace of flood insic~°ance coverage i~ti amai.cnts that eax;eed the current, limits of covey°age a~monnts esta,blisltied 1n sec- tion 61.6 of'ttitle 44, Code of Federal Reg2dations; and (~) 2vluxt effect, if any- (~1) ~raisi~ytig the cttr~•ent ltirratits of coverage a7rio~unts established ~in section 61.6' of title 4~, Code of Federal Reg~i~,lcdzo~ns, ~«~o2~ld have o~r~ the •HR 3121 EAS ~0 1 abilit~t of prtivate i~rasu~r°e~r~s to cord~i~rti2r,e providing 2 .flood ~~-1s~tr,ra,i~ce c~we~°age; a~r~d 3 (B) ~•e~btc~ir~g the ct~~ re~r~t l,~irn~its of coverer-ge 4 a,~rno~u r~ is establtished ~i,n sectio~r~ f~1. G q f title 44, 5 Code of Pede~ral Regnlat,~io~ns, ~wonld ltiave o~-~ tltie 6 abilitg of pr~i.t+ute ins~ttry•ers to ~~ro2~ide si~ff~,cie7tit 7 flood i~ns~i~rance coverage to effectivel,~~ replace the 8 c2c1°rent level, of ,flood insurance coverage being 9 provided, lender the ~ationa,l, I+'lood Insurance 10 Program. I 1 ~b~ REPORT OF TIIE DIRECTOR ON fl('TIVITIES UNDER L2 T~~E NATIONAL I+'LOOD IN~~L~~~~cE PPOGI~Al~l.- 13 (1) IN GEIvER~L.-Tlie Derector shall, on arz a~n- 14 ~~i~i~,al basis, s~z~.bn~,it, a fill ~°eport nn. the operations, ac- 15 t~i-v~ities, budget, ~°eceipts, and e:.rpendi,tures of the Na- 16 do-real P+lood Ins~t~~r•a-race Pr~~q~ra,n~, foj• the p~j•ecedi,rig 12- 17 rri,orz,th pe~~-iod to the Conl,~rratittee nn, Ba;r~k;i~rzq, Hous~i~r2.g, 18 and Urban ~ff~i~°s ~~f' the Se~j~-a,te ar~,d the Co~n~nzittPe 19 o7T, Tina-racial, Serve-ices uf' the Ho~~tse of Representati~~es. 20 (,'~) Tz~~11N~.-Each report 7°eq~~ired ~r.~7tider paru,- 21 gz°a~h (1) shall be sicbm~itted to the committees ~le- 22 sc7°ibed in paragraph (1) ~zot later than 3 months fol,- 23 lo2vi~nq th,e end of each fiscal ~~ear. 24 (.3) CO~ti"TENTS.-Faeh report required i~r~der. 25 pa~rag~r~aph (1) shall inclnde •HR, 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~1 (~1) the c2lrrer-t .firta~ncial co~iditio~r- a,7-d it-- c-rrr-e staten-er-t, of th.e Nat~dnr-al 1+'lood I~r-s2--°a~~~,ce P+-crul estahl~sltie~~ 2tir-c~e~• sec~t~z~rr- 1310 of the 1Va,- tio~--al 1+'k~od Ir-su-•ar-ce ~lct of 1968 (~~ U.S.C. ~U1 %), ~i-r-clud~i,r-q- (~,) prern,i,t-rns ~~aid into s~-ch F'-end; (ii) ~olici~ chinas ragai~-st s~cch, F~Und; and (iii) ext~enses in administering such 1+'aUnd; (B) the ~r-2~-a--be~r and face value of all ~oLa- cies issued ur-dea° the National I+'lood Ins~t-,ra~~-ce Progra~rra that are ~bn force; (C) a deser~rpti,on a~r--~ savrra~r-art~ of the losses attrih2-,table to a•epetitive less str~.~ctu~r•es; (D) a. desc~r•iption. au,d s2tiar-~rrzarit of aI,C losses i,~n,catr~red b~~ t,Itie Na,tio-aal I+'lood Insu-°a~r-ce Yr°o- ~~ram d2-e to- (i) lti~ttrriuene -°elated damacte; u,~ad (ii) nonlaurricane related da~ma-ge; (E) the amoavnts made available bg the Di- reetoa° for naitigattion assistance under section 1366'(e)(5) qf' the Nation-al Flood h-surary-ce ~lct q f 1968 (4:, U. b'. C. ~ 104c(e) (.5)) for the purchase of p~-°ope~-°ties s~ubsta~rttialh~ da~-r-a,~ed b;y flood fo~° •HR 3121 EAS ~ ~) J 1 that fiscal i~ea~r•, artd the actual ~r~2~ryr~be~~ nf',flood 2 da~j~~aaged p7°oper~t~ies pu,reh-ase~l an«? the total, cost 3 exper~decl, to pu~~~cltiase such py•npe~~ties; 4 (I+') th,e est~irri,ate ~~ f' the Dvrecto~y° as to the a2~- 5 erage h-istorical loss z~ea~r, a,rzcl the basis for that 6 est, im,ate; 7 (G) the estimate q f' the Director as to the 8 maximum amount of claims that the National 9 I+'lood, Insu~°a~nce P~~•ogra,m would have to expend 10 in the, event of a catastrophic ~~ear; 11 (H) the aver°age- 12 (~) a~ryzo~z~rt of insurance car~r~ed per° 13 ,flood ~insu~rartice policy; 14 (ii) p~rerrii,~~.nr, pe-r flood i,~ns~~a~ra~r~ce pol- 15 icy; and 16 (i-ii,) loss per .flood, insu~ra--rice polio; 17 ari,d 18 (I) the rru.mber of claims z~wolvin.g rlarnayes 19 iyi excess of the rnax•i~m~um amount of flood ins~~~r°- 20 once available acnder the National F'loocl I72S4.69°- 21 ance Program a~r2d th,e s~tGm of the amount of all, 22 da~ynayes in excess of'such amount. 23 (c) (SAO STPDF UN PRE-F'IR111 b~TRtICTI'RF.S.-Not 24 later thaya 1 ?Dear after the date ~~f the enaetrrient of this 25 title, the Corrtptroller ~aer~eral of the llreited ~5~tates shall eor~- •HR 3121 EAS X33 1 duct a study and su,h7~r-it a y°e~ort to th.e C,on-neittee o~r- 2 I~a~-~k•~i,ng, Ho2rs~-~.q, and U~rbra-r- Affairs of tl-.e ~ti~er~u-te ~cf~-r~? 3 the Cnyrr~rrei,ttee o~-2 F~i~nanci-al, ~~~e~rvices of the H-~-~se nf' Rep- 4 rese~r-tatives, o~-- the- 5 (1) con-posit~io~ra of the re~nai;r-~ir-g pre-1+'11~~11 6 str~-ect,~ares that are e~~li,citl?9 recei-~i,ng discou~~tited t~~re- 7 mi~t~m rates -under section, 1307 of the National Flood 8 Insurance Act qf' 196'8 (4~ U.S.C. 4104), incl,~uding 9 the historical basis fo~° the receipt of s2cc1~, s2cbs~id,~ and 10 whether such s2cbs~id~~ has outlasted its p2-rpose; 11 (,~) '--~t~~rr-ber a~r-d fair n-arhet va,l2-e of such struc- 12 tares; 13 (3) respective it-corne level ~~f each o~u~7-er qf' such 14 structure; 15 (4) ~r-7c~mber of tirraes each, snc6i st,-~~ct2-~re 1-as bee~-- 16 sold s~i,r~-ce 19E;8, ~i~r-ch-.d2ng specific d~-.tes, sales ~ri,ce, 17 a~r-d an?~ othe~-~ ~in fo~~~rnatior~ the b~ecreta~ry -lete~rrr-~i,nes 18 a~prop~°iate; 19 (.~) total losses inc~r--rred bz~ s~rtich str-u;t~u~~°es since 20 t1~ establ,ishment of t,1tie Na-tional Flood Insurance 21 P7~ogram compa~°ed to the total, losses inc2c7•red bg all, 22 st7~cctu7°es that are charged a ~nond~iscounted pre7n~iitiry-z 23 rate; 24 (6) total cost of ,fo~•ego~--e ~rer~~-~iu~ns since the es- 25 tablisl2;rr-er-t of the Natio~r-al Flood Ins2-~ra~-ce Yro- •HR 3121 EAS X34 1 dram, as a resi~.lt of the si~hs~ulies p~rov2ded to snclti 2 st~~~ctn,7°es; 3 ('i) arr~~na,l, cost to the ta:x~t~a-~~e~r•, as aresult of'the 4 suhs~.d~es p~rov~i,ded to szrclti st,~r~tictu~°es; 5 (t~) tdze p~•e~rrt.iu~m tir~~corne collected a,~r~~,d the losses 6 i,~7icr~rred U~ t,12e Nu,t~,o~nc~l £'lood Ins~i~ru,~i,ee Progru!m gas 7 u, residt qf' such e.x;~licith> subsidized st~~ct,~icres com- b eared to the 2~rem~inm income collected, and the losses 9 ~nc~~rred b~~ such P~°ogram as ~°esnlt of str2ccticres that, 10 a~~e ch,a~°t~ed a nondisco2~nted pre7n~ium rate, on a 11 State-by-State bases; a,nd 12 (9) th.emost efficient ~i,~~ay to elim2nate the sub- 13 s~ul;~~ to such st~-~rctu-res. 14 (d) GAO I~EVIET~V OF 1+'E.'17A CONTR~ICTORS.-I'lie 15 Co~npt~°olle~~~ Gerle~f°al nf' th.e Uri~,ted States, ~in cn~rzj~i~.~~ct~,n~rz 16 ~iv~i,th, the I)epa~r-t,~rnery~t of Hon~ela,nd Sect~~•it19's Inspectors 17 ge~r2e~°al, Of f~~ce, sl~ll, 18 (1) conduct a rev~e~u~ of th,e 3 lai°gest, cori.t,~ractors 19 the Dv,rector ~~~ses zn, adm~iniste~°in~~ the Nat~,unal, Flood 20 Inst~-~°ance P7°oyram; and 21 (~) not late7~ than 18 months after tltie date of en- 22 actment, of this t2tle, submit, a 7°e~o~r~t on the findings 23 of sz~ch ~~~eview to th,e Director, tltie Comm ~ttee on 24 ~ank~erty, Ho2tisenq, a~~id Urban Affairs of tlz,e Senate, •HR 3121 EAS lJ (~ 1 and the Corn7r-ittee o~-- Fi~n~znc~al Services of tl-e 2 House gf'Represe~r-tatives. 3 SEC. 133. FEASIBILITY STUDY ON PRIVATE REINSURANCE. 4 Not, later than 1 gear ~ f te~-° tl~~e date q f' e~nact,~rr-,ent, o f 5 this Act, the Co~rnpt7°oller~ Ge7~--~~j~al of t/-~ Ur-,ited ~5~tates s{-,all, 6 eo-~,d~tcct and s~-~b~rnit a report to Cortigress o~rti- 7 (1) the feasibility of req-tiring the Director, as 8 part of carrying oat the responsibilities of the D~irec- 9 to~° under the Na,tiona,l, flood Insurance Program, to 10 pu7°chase private ~°e~nsurance o~° retrocessional cov- 11 e7°age, 'in addit-ion to arzy such, reinsurance cove-°age 12 required 7vr-der• section 13.35 of th.e iational Flood I~r-- 13 surar~--ce Act of 19G'8 (42 U.S.C. X055), to zr~nde~rl~J~~r-q 14 pr~i~nar•~y private i.ns~r-rers for lasses ar•~ising do-e to 15 .flood it-s2c~ra,nce cove-rage pr-ovided b~y s-~ch i~--surers; 16 (?) tlLe feas~i b iGaty q f ~r°epealing tltie rei,~r--s~17°a~r~--ce ~-°e- 17 q-~i-rernent tender s-~ch section 13.35, a~r-d regt~i.~j°i,ng tl~ 18 Directu~; as part of ccarryinq o-.ct t12,e respor2sibi.lities 19 qf' the Directo7° ~rcnder tltie National Flood Insurance 20 P~°ogra-m, to purchase private rei~ns~ttrance o~r 21 retrocessional coverage to underl;-~ing przma,r,19 private 22 cnsua~ers for losses a7•~ising due to ,flood ~insura~nce cov- 23 erage provided by such insure~r•; r,~r-d •HR 3121 EAS 86 1 (3) th.e estin~-ated total sawn--gs to th.e taxpayer qf' 2 tak~i,r-g each. such. actio~r- described 'in parag-°aph. (1) o~r• 3 (~). 4 SEC. 134. POLICY DISCLOSURES. 5 (a) Iw GEC'1;1~~.-Not-v~zthstar-d~i;ng a~r-y other ~rrov~r,- 6 si,o~-ti of la~-w, ti-~ addition to ccn,y other d~isclos~-res that may 7 be, reg~cired, each, policy antler the National 1+'lood Iz-s~~-ray~ice 8 Program sh.a,ll state all conditions, exchtis~ions, and other 9 limitations pertaining to coverage ?tinder the s-cb~ect pol,~icy, 10 ~°Pgardless qf' tltie underl y~inq ~insu~°ance product, in plain 11 Er-gl~ish, i~n boldface type, a'rad i~~- a .fo~~tit size that is twice 12 the size of'tltie teat of the body of th.e pol~ic.i~. 13 (b) VIOL~iTION~S".-~~r-~y person that violates the req~i~ire- 14 ~r-ents of th~i-s section. shall, be s2-~~ject to a fine of ~-u-t, r-io~-°e 15 thar- X50,000 at the discretior- of the Di.~-°ector. 1C) SEC. 135. REPORT ON INCLUSION OF BUILDING CODES IN 17 FLOODPLAIN MANAGEMENT CRITERIA. 18 Not, later than. 6 ~-nory-ths Witte-° t1-,e date of th.e e~-iactrnent 19 of this pct, tTtie Directm° uf' the I+'ede~'al Frn.e~r.gency JTanage- 20 meat Agency sltiall, cond~t-ct a st~r-d,y and s~-tb~mit a -•epo7~-t, 21 to tltie Comm-ittee on Financial Services of'the Mouse of'Rep- 22 -°esentatives and the C.om~nittee on Yanking, Mousing, and 23 Urban fl f fairs qf' the Senate regarding the erapact, e f fective- 24 Hess, ar-d feas~ibil~ity of ame~r-d~ir-,g sectio7- 13F1 of th,e Na- 25 tieruxl flood h-s2cra7-ce ~l ct q f 1:~ 68 (/2 U.S.C. ~~ 102) to i~--- •HR 3121 EAS ~3 7 1 cLude ~-cidel~g used a~r-d -uxt~ional~~ recog7-~zzed bu~ildir-g codes 2 as dart, of the ,floodpla-- y--a~nage~rn-er-t c~r~~i,tertia dei~eloped 3 -c~--der such, section, and, sh-a1,1, c~ete~-•rr-i~r-e- 4 (1) tltie ~regtala,to~°y, .fir-c~~~ic~i,crl, c~,r~-d eco~r-o~-rr,i,c ~~rr,- 5 pacts of sttich a b~-~ild~ir-g code require,~rr-e~r-t or- h~~rr-,e- 6 ow~~,e~rs, States and local cumnz~-i--tit~,es, local land ~-rse 7 policies, and the Federal, Emergency ~'~1anugement 8 Agency; 9 (•~) the resources requti-•ed of State and local coryu- 10 ~n2cn~eties to adm~~~nister and enfo-°ce such a ~utild~ng 11 code ~requ~re~r-tie~-t; 12 (3) the effect~aveness of such a butild~ir-g code ~-°e- 13 qu-ire~rr-e~nt i~r- ~°ed2-ci-rig flood-~~~elcded dan-age to bzr.~~ld- 14 ~i-~r-gs a,r-d co~nter-ts; 15 (~) the irr-pa-ct of s~-~ch a t-uildin-g code req~uii•e- 16 -r-err.t or- the actuar~iaG sozUndness of the Vatio~na~l, 17 I+'lood Ius~-tira~n-ce Prog~-°am; 18 (5) the effectiveness of nat~.onally recogn~i,zec~ 19 codes in allo2ving i~-inovative materia-ls a-zd systems 20 ,for flood-resistant constry~t~etion; and 21 (6) t,1-,e fea~sibiliti~ a,~nd ~ffecttiveness of ~»°ov~zd~in,q 22 an tincentive in lowe~° ~-•ery-~i~tcm 7°ates ,for .flood ins2--°- 23 a~r-ce cove~-•age 2erider such flct ,for str~,cct2t7°es ~--eeti7-g 24 ~-c~li~ich,ever of such 2videly used ar-d ~r~atzonal~ly recog- •HR 3121 EAS 88 1 ~iized b~ild~ing code or a~~l;~~ applicable local b~r.ild Ong 2 code p-°ovides ~i°eater protection,fi°o~y~a flood damage. 3 TITLE II-COMMISSION ON NAT- O URAL CATASTROPHE RISK s MANAGEMENT AND INS UR- 6 ANCE ~ SEC. 201. SHORT TITLE. 8 This title mad be cited as the "Commiss~aon on l~-u,tt~rul 9 Ca,tast7~ophe Risk ~Ylanagement, a,nd, Insn~°ance Elct, gf'2008". 1 ~ SEC. 202. FINDINGS. ll Co7ti~ress finds th,a,t- 12 (1) Hnr~°icarles Ka,tri~-~a, Rita, and ti~~~lrrta, 13 ~~uhich str~.~,ck the United States 'in X005, caused, by Y4 soryne esti.ni~ates, i-r~ e:xeess ~ f .200, 000, 000, 000 i.rl, total, 15 econ ona~ic losses; 16 (,~) rrra~r~;) nieteo~•ologists p~y•edict t1~,cr.t the United 17 S1,a,tes is ~i~rt a period of increased h~~r°rica~ne act~i-2~itz~; 18 (.3) t1~,e Federal Gove~~nmerl,t a~~d State gove~°~~- 19 meats have ~~~°owtided billions of dollars to pay for 20 losses .Pram nat~~ral catastrophes, ~incl,~aeding h~t~rry°i- 21 canes, eartltigzcakes, volcan~~c eruptions, ts2c~nam~is, toy°- 22 nados, ,flooding, tuih~fires, droughts, and other natural 23 catastrophes; •HR 3121 EAS 89 1 (~) ni,a~r~i~ Arnericarls are f~iru~ing ~it i~r~iereastingh] 2 d~rffzcult, to ohta~c~r~ and affrrrd propertg and casl~.alta~ 3 ~~,nsurance cave-rage; 4 (5) sore-e i~~~-s~.~rers a,re not ~~•enPtv~i~ri,g i~r~sz~~~°a~race 5 policies, a~r•e exchtding ce-rta~irti ~~°isks, such as ~w~r~d 6 damage, and are i-ncreasim,g rates and ded~t~cti,bles in 7 some marh;ets; 8 (6) the inability qf' property and business owners 9 in 2+ulnerable areas to obtain and affo~~°d property a-nd 10 casualty 'insurance coverage endangers th.e national 11 eco7lon~y arid, p2ebl~ic ltiealth ar~ad safety; 12 (i) almost eve~i°y State en the United States is at 13 risk of a, nat~~-ral catastrophe, including h~urr~icanes, 14 earthquakes, volcanic er~trpti,ons, ts~rnarr~is, tor~~ados, 15 .flooding, u~ihifir•es, dr~~2~.ghts, and other ~r~a,tural catas- 16 troph,es; 17 (~3) b~a~ild~i.ng codes artid lard zcse ~regnlatio~~ls play 18 an indis;~~ensable 7°ole inmanaging catastrophe rusks, 19 by preventing buildi~ig in high. risk areas and Pnsttr- 20 ing th~x,t appropriate mitigatzorr Nfforts a~~e completed 21 wltie~°e building has taken place; 22 (9) sever°al proposals have been introduced ~n 23 Congress to address the ~,~f fordab~ilitg and ava~zlab~~l~zt~t 24 of na~tur•al catast~°ophe irlsuranee a,eross the L'~~ttited •HR 3121 EAS ~~ 1 States, bz~t there is ~rto corise~~tszts on ~t~~hat, ~~f' ariy, -role 2 th.e Federal, Gn2~er~r~rri,erit sh.ot~ld pla,;~; a7~zd 3 (1U) an, eff'~,e~ie~r~-t a~rid efferti,ve a,pp~r•oach to assess- 4 ir-g r~-atural catast~r°opltie r~~i-sk, rr~~a~rlage~rr~ertit and i~nsuj~- 5 arlce ~is to establish a y~o~rapa~r~isa~r~, co~rri~rrliss~r.o~ri, to 6 st~ulg the ~m,~c~i,age~ment, of ~r1,at~i~ral catastrophe r~islc, 7 and to req~t~ire s~~~ch, commission to timel~~ report to 8 Congress on ~its,f'ind~ings. 9 SEC. 203. ESTABLISHMENT. 10 There is established a nonpa~°tisan Commission on 11 .Vatzcral Catastrophe Risk Vlanagerrzent and Ir~sura~j~ce (irti 12 this tale ~°eferred to as the "C,o~rrzmissio~r~"). 13 SEC. 204. MEMBERSHIP. 14 (a) 1~PPOINTd7E~tiT.-The Corrirraissim~, shall, be en~rr~- 15 posed n f 1 ~ ~n~te~rri hers, o f ~tti~h,n~rn,- 16 (1) 2 rr~enibers shall he appointed b;~~ the ~rr~r~~o~r•- 17 ity header gf't1T,e Sena-te; 18 (,2) 2 mem-hers shall be a~poi~~l,ted bid t,7ie rni~~un°- 19 i-t,y leader of the Se~~,ate; 20 (3) ~ ~me~nbe~~~s shall be appointed b~g the Speaker 21 of the House qf' Represe~nta-ti-ves; 22 (~) 2 members shall, be a~po~inted b~g the 7~ninor- 23 i-tg~ leader gf'the House gf'Representatives; •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 91 (~) ~ nze~rftbers shall be appo~~~~ted by the Chati~i-- rr~a~r~ of the Cnjrzrri~-'ttee on Barlk~~ng, Houserig, a~ad Ur•ha,~~i 1~ffairs of'the Senate; (G) 2 ~rn,err~the~rs shall, he a~r~po~i~rited by the Ranh; i,~r~,,q Me~rri,ber of the C,o~m~rr.~ttee or~i, l~ar~,lc~,ng, Hous~erz~, and Zlrban ~lffai,rs of the Senate; (i) ~ members shall be at~pointed by the Chaffr- man qf' th,e Committee o~n F~na,ncial, Services qf' the House of Kepresenta,t-fives; and (8) 2 rne~nbers shall be appointed b~ the, Rank,- i~l,q He~aber~ qf' the Co~rra~nittee o~rti 1+'~~nancial Services of tltie House of Rep~r°esentatives. (~) Rc~~rFrr~hrow aF ~I~~~~r~E~s.- (1) Lv (,EI~~ERAL.-:Vlerr~here of tl~e Corrin~issio~ra shall be rtppoi~~ted ~u,r~der sn~~sect-i,~rn (a) front a.ryrim~29 pe~rsortis who- (11) Itiawe expertise ~i,n i.~~-s~c~°a7tice,, reijzsi~r- a~n-ce, i.~~s~u.7°ance reg~~lation,, polic2~holder co~~a,- cer7is, emerge~~-cy ma~1,a~~e~n,ent, risk ma~l,ayem-ent,, t~itUlic ,fina~tice, financialmarkets, o-ctaaa~~ial, analysis, flood mapping and t~lanni~n~, st~rt~c- tural, engineering, lnU~ld~inq standards, land use Manning, nat2~ral catastrophes, 7n,eteorolog~, seisrr~olog~, e~~vi~r~onrrae~rttaZ issues, o~~° other perti- ~ri~ent qual~ficatioris or experience; a~r~d •HR 3121 EAS 1 2 3 4 5 6 7 8 9 10 ll 12 13 14 15 16 17 18 19 20 21 22 23 24 25 g~~ (B) a~°e not officers or enrplo;~ees of the Url~ited ~~tates Goverri~rr~er~t or of rcn~y ~~~tate c~ov- c,r.rtrne~~t. (,`~) DI['El~b'ITY.-Irr- ~rraaki,~ng appo~i,rzt~nr,ents to tl~ Co~rrerniss~i-orc- (A) every effort shall be made to ens~ttre that th.e members are represe7titati2+e of a broad cross section of pers2~ect~ives within the United States; and (I3) each nve~r~nber of Congress descr~ebed ~n subsection (a) sh.a,ll appoint not more than 1 person from art~~ s~i~rtigle prima~r2g area of e~rper-tise described i~n paragraph (1)(~1) of this subsection. (c~ PERIOD OF f1PPOINT~IENT.- (1) IN GENER~~L.-Each. ~mend~er of th.e C,o~rram is- sion sltiall, be ap~o~i~ri,ted for t/~e duration of the Co~na- rn, ~ sszo n,. (,~) V~le~~~'CIES. A wacancJ on t/~e Co~rr~~nti~ss~r,nr2 shall not affect i,ts tw~u~ers, b~~~t shall be filled in the same manrtier as the original a~i~ointment. (d) ~r,~OxU~~.- (1) ~V7IJORITI'. ~ ~mr~jorzt~ of the members of. th.e Cornrnission shall constitute a quo?°u~n, but aless- er number, as determined b~ the Co~rnn~~issior~, rna~y hold hear°~~rt~ys. •HR. 3121 EAS 9~3 1 (,~) 11PPROti AL ~1CTIO ~`S. All recorrt ~me~nd at~io~-s 2 and r°epo~i~ts ~f' th.e Cn~-rz~rr-~iss~,n~r- 7~•eg2-~~re~l 1~;y this t~~tle 3 shall, he a~p~roved onl~~ h~~ cr r-~cr~n~-•~i.t;y vote of -ell nf' tyie 4 n-e~r-~be~rs of the Corr-rraiss~i,o~r-. 5 (e) CIIAII~1'EPS~ON.-TI-,e Corr-m'issio~n, shall,, h~ r~r~~jo~r•- 6 iti~ vote uf' all of the ~rrze~mhers, select 1 rne~rn-her to serve as 7 the Ch.airt~erson qf' the Commission (i7~- this title referred 8 to as the "Ch,a~er~~e~•son"). 9 (f) 1~7E~Tr~~'GS.-The Comm~assion shall, meet at the ca.1,1, 10 of'its Chairperson or a mc~~orit2~ of the rynerynbers. 11 SEC. 205. DUTIES OF THE COMMISSION. 12 Th,e C,oryrt~rrt~issio~n shall exw~rai~r-e the risks posed to tl--e 13 United States hey ~ruxt2-~°al eatast~°ophes, and n-ea~-is,fo~r rr-iti- 14 gatcng those ~-°i-sks and .fi-r p-r,y~i,n~ fn~r losses ea--sed lry r-at- 15 ~ural catastrophes, ~i~ncltcdi~n-g assessing- 16 (1) the condition of th,e p~-•ope~r-t,i~ and casua,ltg 17 i.r-su~•a~-ce a~r-d rein-sT~~ra~~-ce nv,~rk;ets p7°i,o~-° to a~r-d i.r-, 18 tlw u;fterm,atli of Iltcrricanes Iia-tri~~--~, Rita, and 19 Wilma ~~- 2005, acid tl-,e ! m~tjo7° ht-7°rica;nes that 20 st7~UCk th,e United States in 2004; 21 (,'~) tlz,e current con-~ition qf; as well as the ont- 22 look ,for, t1~.e availability and cuff"ordabilit~ of ~ins~tcr- 23 ~xnce ~ir- all regions of the co2~~-tr~l~; 24 (.3) the c2crre~-t ability of States, eon--rr-t~nitties, 25 and ir-di2+~iduals to r~r-it~igate their ncrt2--°al catastr~np)~ •HR. 3121 EAS 94 1 ri~s~s, i~r~eludi~rig the affo~rdabil~ity artid .fees-~b~el~ity nf' 2 such, a,ctiv~i--ties; 3 (~) th.e o~rtig~~ir~g e:.rposure ~f th,e Url~ited States to 4 ~iatu~ra,l catastrop/ties, ~i~racl~ud~r.r~g h~ttt•~~°ica~rzes, ea~r~tl~,- 5 gnak;es, volcas~-~ic er~~tiptiorts, tsu~~a~rr~is, tornados, .flood- 6 i,~~,g, wi-ldfi-res, droughts, a~~~,d other nut~lcral, catas- 7 trophes; 8 (5) the catastro2~l~~ic ~ins2~rance, and 7~eins2~rance 9 rynarkets and the relevant p7°cr,ctices tin providing en- 10 surance protection to d~if-fe7~ent sectors of the l~ryne~°ican 11 population; 12 (h) ini,plenienta,t~on of a catastrophic i~r~su-ranee 13 s;yste~rra t11at ca~r~l resolve k;ey obstacles currenth~ irriped- 14 ~~-rig hroarte~r~ i~rr~,plen~~n,tation of c~rtastroph.ic ri-sk; ~rr~an- 15 apemen ,arid ,f~rna~n,ci~rlg ~wi,th, ins~~rance; 16 (%) the,fina~n,c2,al,.feasih2,l,~,t~ a~ld s~csta,i~yzab~ili,t,~~~ qt. 17 a n;ational,, regional, or othe7° pooli,nq mech,a~n.~isna de- 18 signed to pro2±ide adequate ivs~t.~rance co2~e~°c~,qe aid in- 19 creased underwriting capacity to ins~u7°ery~•s and re~irti- 20 surerys, includ~inq private-public partnerships to in- 21 crease ~insuranee capacity in const~rai~ned ~ma-rk•ets; 22 (S) methods to p7°omote public insurance pol~ic~~es 23 to reduce losses caused by rtiatural catastrophes in th.e 24 uni~nsic,y°ed sectors of'the Aryierica~~ population; •HR 3121 FAR 95 1 (9) approaches for zrr-ple~r-e~r-tir-g -r ~i~blic o7~ ~7-ti- 2 uate ~i,r~-su~-°a~r-ce scheme for lo~- -iricon-e co~rr-n-unit~ies, ~in 3 n--der to p~ro~--ote ~-°isk red7cctio~r- ctnd i.~r-s~crarr-ce cov- 4 erage ir- s--ch co~n~r-~ur-iti-es; 5 (1 U) the ~irr-pact of I+~ede~r~-zl cr,~rr,d, State lr~~ws, -°eg~u- 6 lat-ions, and polici-es (i,ncl,~-~ding rate reg~-~lati.o~-~,, mar- 7 ket access re-~~-~ireme~nts, reinsurance reg2-lat-ions, ac- 8 co2ontir-g and tax policies, State residical markets, 9 and, ~,~~ta,te catastrophe funds) on- 10 (~~) the ~zfforda,bility and availability of ca- ll tast~~opltie r~r-sura~r-ce; 12 (B) the capacity of tdtie pr•~ivate ~i7~-s~u~ra7-ce 13 n~-arket to cover losses indicted by ~-atn~ral catcrs- 14 trophes; 15 (C,) the con-~raerci-al, a,-~d ~'-•eside~ntial develop- 16 rne~rtit -~f Itii,,gh--•~ask areas; crud 17 (D) the costs of ~aatz--°al eatastropl~s to Ped- 18 eral and State taxpayers; 19 (11) the p7°esent and long-te7°m ,financial cond~i- 20 t,aon of State residual mar~~kets and cata-strophe .funds 21 an high-risk; re~u~~ns, ~nel,~tcdang the likelihood of insol,- 22 venci~ fotlo2vi~ng a natural catastrophe, the concent~°a- 23 tio~re of ~-•isks within sitich, .ficr-ds, the reliance on post- 24 event assessn-en,ts a~-d State .fnr-diy~tig, ~-~-d the ade- 25 q~uacy ~~ f' ~-•ates; •HR 3121 EAS ~~ b 1 (U) the 7°ole that ~i~renovation, in fir~,ane~ial ser~u- 2 ices co2dd phr~~ ~i,~n ~i~rr~prov~,~rl~ th.e ~f fbr~~~eh~el,~it~~~ ~r,r~~~ 3 availabili,t~~ ~f natured catastrophe ~irtsz~~~ra,~~ce, spec?-fi- 4 calh9 add~r•essirig ~necrs~ures that ~auo~uld .foster the devel- 5 op~rne~ri,t of ,t-inanc~i,al products des~i,ct~r~ed to cover ~y~-at- 6 ~nral catastrophe, risk, si~clti as risked-h~~nked seci~r•i.tties; 7 (13) the need for stre~nythe~rtied land ~~~se r~e~~~ula- 8 bons a;nd building codes ~in States at, h~tigh rusk .for 9 natural, ea,tastrophes, and ~~nethods to sty°engthen th.e 10 risk assessment ~znd enforcement of stry~~ctural ~n~it~~~a- 11 tio~ra and v2~lri:erab2l~itp reductiof~~ ~r~teasures, such as 12 zon~ertig a'nd, building code conaplia,~~,ce; 13 (14) tltie be7zefits and costs ~f proposed I+'ede~°al 14 ri,at2~,ral catastrophe ~,nsu,ra~nce p'rog~rarrzs (i~r~clt~.di~r~g 15 the P+eder•al, (~over•nrnert.t pro'i~uling reinsu~r•a,~nce to 16 State catastr°ophe,f~~-nds, private tinsu~r°ers, o~r other e~i- 17 ti-ties), spec~f~icallz~ add~j°essing the costs to tax•pa.z9ers, 18 tax equity cunsiderat,~-ons, and tli.e record qf' other gov- 19 ernment iras~crance programs (pa,rtic~~~da~r°ly ~wiflt re- 20 gird to charging actuarially sound p~r~ices); 21 (15) the ability of the United b'tates private ~in- 22 surance rna~°ket- 23 (d) to cover 2nsur°ed losses caused b~i~ rtat- 24 ur~al catastrophes, i-acl2~d~inq r~rz estimate qf' the 25 ~nt~ax~~rrt~t~-rn ar~nount of insured losses that could be •HR 3121 EAS ~~ 7 1 s~ustai~ried dur°~ir~~ a stir~~~le,year acid the proh- 2 cr-h~i,lity of rlatar~•al, c~r~tnst~r°~~~h.es occur°r2~~zg ~i-~r~ n 3 s~i,wt,tyle dear that, ~rvould i~ritlict, rrio~re irrs~cr•ed losses 4 th.a,n the Llr~,i.ted States irisarar~-ce ~~,rr,d rei-r~suj•- 5 ar~,ce rn,arkets co~zeld s~ustairy~~,; a~rzd 6 (B) to recover after covering si~bsta~titial, i~~l- 7 szcred losses ca~csed bid rtiat~~~-ral, catastrophes; 8 (16) the impact th,~r,t demographic trends conld 9 have on the amat~nt of insured losses inflicted b;z~ .f2c- 10 tore nat~tcral catastrophes; 11 (17) the appropriate role, ~f a71~~, f'o'r the Federal 12 Gover~rl~rrze~nt vn stabitiz~ing th,e property a7~ld casualti~ 13 ~ins~urartice and -°ei~r~s~~~-ra~rlce markets; and 14 (18) the role of th.e Federrr.l,, ~ti'trzte, and local gnv- 15 e7•ri~rnPnts ~i,rl, p~rov~idi,nq ~incenti,z~es ,fir feas~ihle ~~•isk 16 nz.iti-gatio~rt, e f fo~r-ts. 17 SEC. 206. REPORT. 18 (a) IN GE~~F.I~ 1L.-Not, late~r° than, J rnorztltis ctfte~• the 19 date ofenactment of this title, the Commission shall s~t~-Umit 20 to the Committee on Banking, Housing, a,nd I~rvan ~1ffa,~i~r•s 21 of the Senate cr:nd th,e Commtittee on P+ina-ncia,l, Services of 22 the House of Representatives a ,final, report contai~n~ing- 23 (1) a detailed statement qf' the findirtigs and as- 24 sessments co~r~ducted by the Co~~ya~n~ission pu~rs~aant to 25 sectio~rz 205; acid •HR 3121 EAS ~~ 1 (,`~) a~r-~,~ -°eco~rrrrrae-idat~o7-s ,for legislative, -,ec~u- 2 latorg, a,d~rrai~-iist~°ative, or ether actin~ns at the I'ed- 3 e7-al, State, or heal, le~~els that th.e Corr~;rr-ission cnr~- 4 ciders a-~p~-°op~riate, ~ir- cr,cco-°dar-,ce with the req~-~i,~-°e- 5 rner--ts of sectior- 2U5. 6 (U) EYTE.v.S'IUN OF TI~IIE.-'L'Itie Co~rn~~r-,~issi,ou ~rnag re- 7 q~Uest Congress to e:~ten-.~ the period of time for the s~Ubmis- 8 soon, of the report 7°eq~t~~irec~ ~--nder s~~bseet-aon (a,),for an ad~~~~- 9 teoual 3 months. 1 ~ SEC. 207. POWERS OF THE COMMISSION. 11 (a) i~7EET1wG~5'; HE~xrnc~~~.-Tlie Cou-rr-issiou ma.-~ 12 hold such heari~r-gs, sit a~r-d, act at such tin-es ~r-d places, 13 tape such testi~rr-oug, a~r-d receive such evidence as tl-e Corri- 14 ~r~eiss~io~rt cor-si,ders ~neeessa~r°y to ca,~r~r;-~ o~-~.t fih.e p~.~r~~nses of this 15 title. Me~rnbers ~n-a~ attend rr-eeti,ngs of the (~o~r--rr-issinn a~-~d 16 vote ~i,r- pe~r•so~r-, via telephone conference, or- ~i+~i,a video co~rz- 17 Terence. 1$ ~~ 11U27IORI1'~' OF 161E~VII3EI?S OR ~1(UE~~%T~ OF' TIIF, 19 CO~tiIa1ISSION. ~1~ra~~ m,er~tUer or age~-tit qf' tl2e Co~rrt~m~issio~-ti 20 ma.~, if a'-~tho~°~ized by the Cornmissiu-ti, take a»iz~ action 21 wh~ieh the Co~mmassion is authorized to take b~~9 this title. 22 (c) OBT~~LI rw~~ OFFr~~r~l~ D~4TA. 23 (1) ~lt'TrzoRl7~:-Notwithstanding ~xn.~ provi- 24 sion n f' sectior- ~:>>a qt' title 5, Ur-. ited States Code, t11.e 25 Corr-ryaissiory- ~~r-az~ secu~r•e directhJ .f'rorr- a~-y depar~t- •HR 3121 EAS c~ c~ 1 rr~e7zt o~r ayerlcy of'the L%r~~ited States a~r~y wr~~fo7°ryr~atio~ri 2 ylecessar;~~ to eflable the Cnrr~n~~i-ssin~r~ to ca~r7~~ ou.t this 3 ti-tle. 4 (,'~) PROCEDURE.-Upon. request qf' tltie Chai.~i°_ 5 perso~r~, tltie head of such depa,r-trraejzt or ayer~cy shall 6 ftti7°nish to the Co~rn~mi-ssiart the i~nforrnatio~n regaested. 7 (d) Pe)ST~1L SERVICES.-The Com~miss~i,on may ~z~se the 8 United States mu,ils ~in the same manner and ~1~nder tltie 9 same conditions as other departments and agencies qf' t11,e 10 Federal Government. ll (e) 1~ItiIIMSTR~TIT'E SUPPORT SERVICES.-Upon the 12 7°egzcest of the Coryr~~nti~iss~io~r~, t12,e 4dyri~zrvistrator qf' Ge7le~ral 13 Se7~vices shall p7°ovide to th,e Com~ireission, ora a reir~rabu~rsable 14 basis, a~rl,i~ adrr-~r-~rtiistr-attive si~.ppn~r-t services 7tiecessar,~,frr1° the 15 Co~ri.na~i-scion to ca~r~°y oz~t its responsi,biliti,es 2-~,nde~r this title. 16 (f) ACCF,PTA.IrCF, e~F GTFT~~'.-Z~tie Con~~r~niss~i,on ~~rzay ac- 17 cept, lwld,, ad~rnirziste~f; a~r-,d utilize g2,fts, do~natio~r~s, a,~fad, be- 18 q~i~ests ~~f'~ropey~ty, both real, and person,a,l, ,fbr the p~~tirposes 19 of aiding o~r facili-tatin;g the work of the Commission.. The 20 Commission shall iss~~~e i72~ternal, ~~~t~idelines governing tl~ re- 21 ceipt of'donations of ser~rices or property. 22 (g) VULI'NTEER SERVIC,Eb'.-Notwithstanding th,e p~ro- 23 visions qf' section 13,2 of title 31, United States Code, the 24 Corri~r~aissio~n ntiay accept and utilize the see°vices ~~f voli~~r~- 25 tee~rs se~viny ~a*ithoict coryripe7~satior~. Th-e Co~rirn~isstio~ri ~rnay •HR 3121 EAS 100 1 ~-°e~i~r-abuj°se s2cclti volu-iteers fo'r local travel ~~~--d gffice s~zr~- 2 ptzcs, rr-nd frrr other° travel, exper-ses, ir-,clud~i;-~-g per ~~ierr- ~i--~-- 3 lieu of s~-bstister-ce, as author•%zed lry secti,or- .5"i03 of title 4 5, United States Code. S (h) PEDER ~L PPOPERTY ~:~'D ~ D:i11NIS1'Rtll'I hE ~~~~RV- 6 ICES ACT (~~' 1949.-S~-cUject to tltie b'ederal Prope7~ty a~-1,d 7 Administrative Services Act of 1949, the ('ommission may 8 enter into contracts with, I+'ederal a,~nd, State agencies, t~ri- 9 vate firms, i~nstitz~t,-ions, anal individuals for the conduct -~f' 10 activities necessary to the d~ascharge of zts dunes and re- 11 sponsib~ilities. 12 (~) LIMITATION o1v Co1vTR~C1'S. ~ cojdract o~r other 13 legal ag~reeri-ent e~r~tered i~-to Uy the CU'rr-rnission may 'r-ot 14 emend heyo~r-d th.e date of the te-~rr-ination of the Cown.rni-s- 15 sion.. 16 SEC. 208. COMMISSION PERSONNEL MATTERS. 17 (a) TR~IVEL EYPF,V.S'E~4.-The ~rr-e~rrr-hers gf'the Coryr-yrzis- 18 sion- shall be allowed travel e,~r•pe,--ses, ir-cli~di,~rig per d~ie~n 19 i~r- lie~ti qf' subsistence, rat -rates a~rtithori,zed for employees of 20 agencies under s~-tbchapter I of chapter 5~ uf'title 5, U-z~ited 21 States Code, while a~-vay f~°o~m their homes or r°~gular places 22 of b~USeness in the, pe7,fo~rmance of serv~zces for the Comrynis- 23 s~ion. 24 (b) SUECOtiIMITTEES.-The Corumissio~r~ rr-ay establish. 25 subeo~-ra~rrtittees and appoint nterr-bers of tltie Corrt~-r-tissio~rt to •HR 3121 EAS 101 1 such s~ubcorrrrrrittees as the Coal ~rr~ss~io~n co~r-stide~rs c~p~-°o- 2 priate. 3 (c) STA~'F~.-~~~~--hject, to such pol~i,c~ies as the Co~m~r-r~is- 4 s~i,on ~rna;y p-°esc~r~,be, the Cha-~~,~-~e-°son r--a~~ appo%nt a.nd fix, 5 the paid of such addi,t~~,or-al perso~rvr-e,1 us the Chad,-~~e~-~~o-~- 6 considers -~ppropriate to carri~ u~1~t the d~a~t2es of tltie Co'n1.- 7 mission. l~,e Cu~mmtission shall, confirm the uppointment of 8 the executive d~i,rector by ma;~ortit~~ vote of a,bl, of'th,e -members 9 of the Commtiss~io~n. 10 (d) ~~PLrc~rLrz~Y of C,L~xr ~rN CrvIL b~ERi~lr~ 11 LAUDS'.-Staff of the C,onznviss~on ryna~~ be- 12 (1) appoi-~~ted i-~~ithout ~rega-°d to the prov~is~ions qf' 13 title 5, United States Code, t~ove~-~ni~r-,q .appoti~-~itryr-e~-~1ts 14 ~-n th.e conrpetit~ve se~rv~ee; and 15 (`~) paid without ~re~ard to t1-,e ~r~rwisinr-s n~' 16 chapter 51 and st-l-cliapte,-- III of cl-,apter 53 of tl~.at, 17 t~-tle -°elatz7z,~ to class~,t-icat~io~r- a-i,d Ge,~r-e~ral ~~~chednle 18 pay rates, except that a~n ~,n.d~,vid~--al, so appo2nted 19 m,ay not ~°eceive pad i.n eax,ess of the ann~tr,al rate uf' 20 hcrsic pa?~ presc~~~ibed .for GS-15 o f' th.e General, Sched- 21 ~tde tUnder section G332 of that title. 22 (e) EI~~ERTS .-t~z~ Co~'~S~ULT~~%T~S~.-In carr~~~ing oz-t its 23 ohjecttives, the Co-nrrriss~ion -nay p~°oc~ure tempora7~~z~ and 24 ~z~nterrntittef~-t services of consultants ar-d experts under sec- 25 turn 310~(b) gf'title 5, United States Code, at rates for er-di- •HR 3121 EAS lOZ 1 victuals ~wh.~ich do not exceed the d~~ly egnivale~nt of the cr.rt- 2 ~~rual rate of basic pa;~ prescribed for GS-15 of th.e l,ene7~•al 3 Scltiednle 2~nder section .5332 of'that title. 4 (t~ DEr9IL OF GOi EI~N~VIENT E~IIPLOYEE~ti'.-Upon, 1'e- 5 ~t~i~est, of the Chad-~~~e-~~so~r~,, art-z~ I+'ede7°aG (~over~°r~~rr,e~~1t e~rr~-~r~loi~ee 6 ~rnat~ be detailed to the Conzrn,ission to assist in carrl~i n.~ 7 o~~it the ditties of the Commissio~ti- 8 (1) on a rei~mb~.~rsable basis; a-nd 9 ('?) s2aeh detail sh-a1,1 be without inter7~tiption or 10 loss of civil se7w~ice status or p7~ivilege. l l SEC. 209. TERMINATION. 12 The C,orriryniss~io~fa shall te7~n~irz,ate 90 da,2ts after th,e date 13 o~n~ ~tvlvach. the C,onaryraission submits its ~repo~r~t u~r~de~r section, 14 X06. 1 S SEC. 210. AUTHORIZATION OF APPROPRIATIONS. 16 There are autho~•~i,zed to be app~rop-riated to t,1ie Com- 17 rrr,~iss~ion,, s2~clt sums as ~yr~aJ be ,>2ecessa,ry to ca~~~~~~ oi~t tltiis 18 title, to remain. available, -until expended. 19 TITLE III-MISCELLANEOUS 2O SEC. 301. BIG SIOUX RIVER AND SKUNK CREED SIOUX 21 FALLS, SOUTH DAKOTA. 22 The project for ,flood control, S~q Sioux River and 23 ~5~k,2Unls; Creek°, S2ou;;c Falls, South Dakota, a~utho7°~ized b~ sec- 24 t~ion 101(a)(~8) of the N~'ater~ Resour°ces Developrnont pct of 25 1996' (110 Stat. 3666), is jr~znd~if red to auth,o-°~aze tltie Sec- •HR 3121 EAS 1.0:3 1 ~r•etar~~ to ~-°e~rr-tn~~r°se the r~or--federal tiriterest fbr fir-ds ad- 2 ~~a~r-eed b~i~ th.e j-on,-~'e-~e~r~-l, ~.~r-ter•est,fi-r the I+'er-?e~~°~l sh~r.re of 3 the project,, o~-i,ly ~~f a~ld,~i,t,ror-a,l I'ede7-a~ ,furtids -z-•e ~pprn- 4 priated,for tliat, p~tti~rpose. S SEC. 302. SUSPENSION OF PETROLEUM ACQUISITION FOR () STRATEGIC PETROLEUM RESERVE. 7 (a) IN ~~ENER ~L.-E~r~ce~r~t ccs ~~uvic~ed in si-bsect~i-ory- 8 (b) and not,'avtithstunding any other prov~is~o'n of lazy, Burin-~ 9 the pe7°~iod beg~inn~i~ng on the da-te of enactment of this Act 10 and ending on December 31, 2008- 11 (1) the See~-°etary of tltie Interior shall suspe7tid 12 acgwis~~t~urr- of petrolenn- for th,e Strateg2c Pet~role~u~-~i 13 Reserve through theroyalty-~en--kind prog~ra~rrz; and 14 (,~) tl-e ~ti~ee7°eta~r.~ -~f' E~ne~rgy sh.a1,1, szrsperid ac°q~zr~-- 15 sat~.ora of pet-°olettryn .for the St,-rateq~i,c Pet-°ole~-~rrti Re- 16 ser•~-~e tlti~rough, a~t;y otltier• acq~-tisr.t~on yr-ethod. 17 (b) RE.S'L7~7PTION.-~~rot ea~rLi.er thar- 3U days ~,tte~-° th,e 18 date on iuh,ich tltie Y-°es~dent not~fies Co~n,g~ress that the Yresi- 19 dent h,as detern-ined that t1~e ~wetighted --,ve~r~age p-°i.ce of pe- 20 trole~aUm i;rya the U-tiited States for the must recent JO-du,y 21 period ~~s $i5 or Less per barrel 22 (1) the b"ecretary of the Inter•~aor ma,.~ ~res2-Yr-e ac- 23 q~-isition of pet,-°ole2-~-~ for the S'trategtic Petrole2-na Re- 24 serve tltirough the royalty----k~i~-d p-°og'ran-; a~-d •HR, 3121 EAS 10~ 1 (~) the Secretar•;~~ of Energy n~a~,t ~res~~-rri,e acq~l.isi- 2 t,~i-n~ra of petrnleurrl. fn~r the ~~~tratPgi.c Petrnlen.nt ~iese~°ve 3 th,rnugh arn~ other acqui-sit~inn rnethnd. 4 (c) E~I~~Z'Inr~~ CONTPICT~S.-In the case of an,i~ nil 5 scheduled to be deli-rered to the Strateg~i-c Yet,~roleurn Rese~r°ve 6 tnUrsnant to a- contract entered i.~~tito by the b~ecretc~ry of E~r~ti- 7 ergg try°io~r to, and in effect, on, the lute of enactmeztit of 8 th.~is Act,, the Secretari~ sltiall,, to the rna~imum extent ~~ruc- 9 ticable, negotiate a deferral, of the delivery of tlw oil for a- 10 period of not less than 1 year, in acco~°dance with p~~•nce- 11 lures of th,e Depar~t~rnertit of E~rwrgy ir~~ effect on the date 12 of erylact~nent of tltiis ~~ct for deferrals of oil. ~~ttest: ~~ec~retarit. •xx si2i Eas iy ~~y l'~ '!_ t9 fz f~ r -r. ~^ ~~ US Senate Bill 1499 (S. 1499) Marine Vessel Emissions Reduction Act AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: LEGISLATIVE REPORT: UNITED STATES SENATE BILL 1499 (S. 1499), MARINE VESSEL EMISSIONS REDUCTION SUMMARY: United States Senate Bill 1499 (S. 1499), the Marine Vessel Emissions Reduction Act, would require tougher pollution controls for ocean-going and container ships. S. 1499 and its companion bill, United States House of Representatives Bill 2548 (H.R. 2548), would require the U.S. Environmental Protection Agency to reduce the sulfur content of fuel used by domestic and foreign ocean-going ships calling at all U.S. ports and set standards requiring the maximum degree of emission reductions achievable in new and existing engines for all domestic and foreign ocean-going ships calling on U.S. ports. A copy of the bill is included as Attachment A to this report. RECOMMENDATION: That the City Council take a position to support S. 1499 and direct staff to transmit the attached letter of support to Senator Barbara Boxer. FISCAL IMPACT: There are no significant fiscal impacts associated with this action. BACKGROUND AND DISCUSSION: At the July 1, 2008 City Council meeting, Councilman Bone requested that staff review and provide information regarding S. 1499. As proposed, S. 1499 would require tougher pollution controls for ocean-going and container ships. S. 1499 and its companion bill in H.R. 2548, would require the U.S. Environmental Protection Agency to: • Reduce the sulfur content of fuel used by domestic and foreign ocean-going ships calling at all U.S. ports beginning December 31, 2010, from an average of 27,000 parts per million (ppm) today to a maximum of 1,000 ppm. Ships calling on west coast ports would have to use the low-sulfur fuel at sea anywhere within 200 miles of the coastline; and City Council Report S. 1499 July 15, 2008 Page 2 • Set standards to take effect on January 1, 2012, requiring the maximum degree of emission reductions achievable in new and existing engines for all domestic and foreign ocean-going ships calling on U.S. ports. According to the South Coast Air Quality Management District (SCAQMD), ships calling on the ports of Los Angeles and Long Beach are responsible for more than 30 tons per day of sulfur oxide emissions -roughly half of the total emitted by all sources in the region. Sulfur oxide emissions contribute to the formation of fine particulate (PM 2.5) pollution. Southern California cannot achieve the federal health-based standard for PM 2.5 by a federally mandated 2015 deadline unless sulfur emissions from ships are greatly reduced. Ships also are a major source of smog- and particulate-forming nitrogen oxides, as well as diesel particulate matter, a toxic air contaminant. Due to the lack of current regulations, ships are virtually the only source category in which emissions are projected to increase in the future. If rules are not adopted, nitrogen oxide emissions from ships in the Southern California region are projected to grow from about 48 tons per day in 2005 to about 90 tons per day in 2020. It is estimated that in Southern California alone, approximately 800 premature deaths per year result from exposure to fine particulate pollution from ocean-going vessels. Research has shown that particulate pollution from ocean-going ships causes at least 2,000 to 5,000 premature deaths per year in the continental United States according to the SCAQMD. In addition, the SCAQMD recently completed its third Multiple Air Toxics Exposure Study (MATES III) that showed ship emissions create cancer risks of more than 100 in 1 million for more than four million residents in communities surrounding the Los Angeles and Long Beach port areas. For these reasons, staff recommends that the City of Tustin take a position to support the Marine Vessel Emissions Reduction Act. Scott Reekston Senior Planner Elizabeth A. Binsack Community Development Director Attachments A: Draft Letter of Support B: Senate Bill 1499 ATTACHMENT A DRAFT LETTER OF SUPPORT July 16, 2008 The Honorable Barbara Boxer 112 Hart Senate Office Building Washington, D.C. 20510 SUBJECT: S. 1499 (BOXER) -LETTER OF SUPPORT Dear Senator Boxer: On behalf of the City of Tustin, I wish to express our support for S. 1499, the Marine Vessel Emissions Reduction Act. S. 1499 would require tougher pollution controls for ocean-going and container ships. S. 1499 and its companion bill in the U.S. House of Representatives, H.R. 2548, would require the U.S. Environmental Protection Agency to: • Reduce the sulfur content of fuel used by domestic and foreign ocean-going ships calling at all U.S. ports beginning Dec. 31, 2010, from an average of 27,000 parts per million (ppm) today to a maximum of 1,000 ppm. Ships calling on west coast ports would have to use the low-sulfur fuel at sea anywhere within 200 miles of the coastline; and • Set standards to take effect on Jan. 1, 2012, requiring the maximum degree of emission reductions achievable in new and existing engines for all domestic and foreign ocean-going ships calling on U.S. ports. Ships calling on the ports of Los Angeles and Long Beach are responsible for more than 30 tons per day of sulfur oxide emissions -roughly half of the total emitted by all sources in the region. Sulfur oxide emissions contribute to the formation of fine particulate (PM2.5) pollution. Southern California cannot achieve the federal health- based standard for PM2.5 by a federally mandated 2015 deadline unless sulfur emissions from ships are greatly reduced. Ships also are a major source of smog- and particulate-forming nitrogen oxides, as well as diesel particulate matter, a toxic air contaminant. Due to the lack of current regulations, ships are virtually the only source category in which emissions are projected to increase in the future. If rules are not adopted, nitrogen oxide emissions Senator Barbara Boxer July 16, 2008 Page 2 from ships in the Southern California region are projected to grow from about 48 tons per day in 2005 to about 90 tons per day in 2020. It is estimated that in Southern California alone, approximately 800 premature deaths per year result from exposure to fine particulate pollution from ocean-going vessels. Research has shown that particulate pollution from ocean-going ships causes at least 2,000 to 5,000 premature deaths per year in the continental United States. In addition, the Southern California Air Quality Management District recently completed its third Multiple Air Toxics Exposure Study (MATES III) that showed ship emissions create cancer risks of more than 100 in 1 million for more than four million residents in communities surrounding the Los Angeles and Long Beach port areas. For these reasons, the City of Tustin supports S. 1499, the Marine Vessel Emissions Reduction Act. Sincerely, Jerry Amante Mayor cc: Senator Diane Feinstein Congresswoman Hilda Solis Congressman John Campbell Bill Higgins, League of California Cities Orange County City Managers S:\Cdd\SCOTT\Legislation\S 1499 Position Letter.doc Senator Barbara Boxer July 16, 2008 Page 3 bcc: Tustin City Council William A. Huston Lisa Woolery Scott Reekstin S:\Cdd\SCOTT1Legislation\S 1499 Position Letter.doc ATTACHMENT B SENATE BILL 1499 II 11~~I~~ON~~RESS 5.1499 ST SESSION To amend the Clean Air 1Lct to reduce ~iir pollution fi°on mari~~u~ vessels. IN THE SE\~A~I`E OF THE UNITED STn'1'ES ~~~ ~?~, zoo? Mrs. BOXER (for herself and Vlrs. FEINSTEIN) introduced the following; bill; which was read twice and referred to the Committee on En~-ironrnent and Public Forks A BILL 'ho amens] the Clean Air Act to recluse air' pollution from marine vessels. 1 Be it enacted by th,e Senate and Ho~cse of Re~7•esenta,- 2 gives of'the Zlnited States of'A~raer•2ca ra C~rey~res~s asserraUled, 3 SECTION 1. SHORT TITLE. 4 This pct may be cited as the "Marine Vessel Ernis- 5 sons Reduction Act of 2007" 6 SEC. 2. FINDINGS. 7 Congress finds that- 8 (1) emissiol~s of air pol]ut~~rlts fY•orn ma,I°inc ~~es- 9 eels contriUute significantly to danberoUS air pollu- 10 Lion in many areas in the United States; 2 1 (2) current levels of control on those emissions 2 arc not adequate to protect air quality grid public 3 health; 4 (3) to protect air qualit~~ and public health, ef- 5 forts b~~ Sta.tc and local bovcrnmcnts to control cmis- 6 sions from marine ~-essels must be au;~mented by the 7 Federal Government; $ (4) althou~l~~ the En~-ironmental Protection 9 Agency may require additional controls err domestic 10 and international marina vessels enter~rr~ United 11 States ports, significant emission reductions must be 12 achieved in the near future; and 13 (5) it is urrent acid neecssa,ry to rcdLiir•c the 14 Administrator of the En~~irornricnta] Protection 15 Agency to establish standards to reduce emissions of 16 air pollutants fro3n marine vessels in a sufficient pe- 17 riod of time to allow all a.rca~s in the United States 18 to meet air duality standards in accordance ~~~ith ap- 19 plicable deadlines. 2O SEC. 3. MARINE VESSEL FUEL SULFUR. 21 Section 211 of the Clea~u ~lir Act (42 U.S.C. 7540 22 is amended- 23 (1) by redesignatin~ the first subsection (r) (re- 24 lating to fuel and fuel additi~~e importers a.nd impor- •S 1499 IS 3 1 Cation) as subsection (u) a,nd moving that subsection 2 so as to appear at the end of the section; and 3 (2) by inserting after subsection (o) the fol- 4 lowing: 5 "(p) l~/IAI~,INE VESSEL FUEL SIILFUP,.- 6 "(1) I~ GENEI~7,.-Subject to paragraph (3) 7 not later than December 15, 2008, the 1ldminis- 8 trator shall promulgate regulations that, effective be- g gvlning on Dcccrnbcr 31, 2010, rec{uir•c tnarinc vcs- 10 sels described in paragraph (2) to use, Elie] that con- I1 twins not more than 1,000 parts per million of sulfin• 12 in the main and auxiliar•~~ engines of the vessels. 13 "(2) APPLIC~I3II~Pl'Y.-The regulations promul- 14 gated pursuant to parag~°aph (1) shall apph~ to all 15 marine vessels, including any vessel fh,gged in a 16 counties other than the United States, at an~~ time 17 a~t which the vessels arc, on entering or leaving a. 18 port or offshore terminal of the United States- 19 "(A) within 200 miles of the west coast of 20 the continental United States; and 21 "(B) within such dista,nec of the cast coast ZZ or gulf coast of the United States, ol° the 23 shoreline of the Great Lakes or St. Lawrence 24 Seaway, as the Administrator determines to be •S 1499 IS 4 7 appropriate for the purpose of protecting public 2 ~ica,lth and the environnlcnt. 3 "(3) INTFRIl7 REQIIIREDIEl~'1'.- 4 ~~~~) I~' GE1~~Eh~,.-Notwithstanding tl c 5 requirement of paragraph (1), tl~ic ~~7niinis- 6 tra,tor may prornulg;ate re~;tilla~tions undcl° tl~~at ~ paragraph that permit marine vessel fizel sulfilr• 8 content in excess of 7.,000 parts per million ~f 9 the Administrator dctcrrn~ncs that complia,l-ice 10 with the requirement of paragraph (1) is not 11 technically feasible b~~ December 31, 2010. 12 "(P) REGI?I~~Z,IO~Ts.-If tl~le Administrator. 13 makes a. deternunation dcscr•ibcd in subpara- 14 graph (A), the Administrator shall prornul~~a,tc 15 reglrla,tions that require marine~vessels- 16 "(i) beginning on December 31, 2010, 17 to use fuel that contains- 18 "(I) the lo~~~est quantity of sulfur 19 that is technically feasible b~~ that ~~ date; and 21 "(II) in uo event a quantity of 22 sulfur in excess of 2,000 parts per 23 million; and 24 "(ii) to achiez-e compliance «~ith the 25 requirement of paragraph (]_) on tl~~c car- •S 1499 IS ~~ 1 liest practicable date by whit}~ coruplia,nce 2 is technically feasible. 3 "(4~ ALTERVr~1'IZ~ GONIPLIANCE IIFCIIA- 4 NIS~2.-The Administrator may provide for an alter- 5 native mcclia.nislYi of complia,nec under this sub- 6 section for a marine vessel if the l~drnin~strator dc- 7 termines that- 8 "(A) tl~le vessel employs a control tecl~~- 9 nology that reduces emissions from the vessel of 10 sulfizr oxides and particulate matter to at least 11 the same degree as the reduction that would be 12 achieved b~~ the ~-essel through compliance «~ith 13 the applicable fuel sulfur content limitation 14 under this subsection; and 15 "(B) the emission reductions achieved as 16 described in subparagraph (1) a,re in addition 17 to any reductions i•cquired to achicti-e corripli- 18 ance «-ith an applicable engine emission sta~nd- 19 and issued by the 1~dministrator or the head of 20 another Federal agency. 21 "(~~ NO EFFECT ON OTHER ~~tiTHORITY.- 22 Nothing in this subsection limits or otherwise, affects 23 any authority of the Administrator to regulate fuels 24 or fuel additives for use in marine vessels or a,ny •S 1499 I5 h 1 other nonroa,d vehicle or engine under this Act or 2 any other provision of lativ.". 3 SEC. 4. ADVANCED MARINE VESSEL EMISSION CONTROLS. 4 Section 213 of the Clean Air Act (42 U.S.C. 747) 5 is amendcd- 6 (1) by redesi~;natin~; subsection (d) as s~zb- 7 section (f); and 8 (2) by insertinb after subsection (c) the fol- 9 lowing: 10 "(d) 1~DV~NCED ~IVF VFSSFI, E~VIISSIOy Co~r- 11 Txozs.- I2 "(Y~ S~1~A~DIIR~DS FOR OCEANGOIyG VFSSELS. 13 "(A) Iw ~E~~Er~.-Not later than De- 14 2008, the Administrator shall }~r•o- cember 15 , 15 mulgate, and from time to time revise, regtilla- 16 bons that establish standards for emissions of 17 oxides of nitrogen, part,iclzlatc rtia,tter, hydro- 18 carbons, and carbon monoxide fii~~on~- neT~-ly-rnan- 19 ufacttilred acid in-use main and auxilia,l~~ en- 20 gives in oceangoing marine vessels that enter or 21 ]cave a, fort oi• offshore terminal of the United 22 States. 23 "(B) PERUIREMEVT.-The Standards 24 under subparagraph (A) sha11 require, effective 25 bcg~innin~ on January 1, 2012, that the cn~incs •S 1499 IS 1 2 3 4 5 6 7 g 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 •S 1499 IS described in that subi~a.ragra~h achieve tl~-e greatest degree of cmission reduction a,chicvablc through the application. of technology that the Administrator determines, in accordance witl~- this p~ragra~h, will be a,va,ilablc for the affected engines. "(C~ ADDI'hION~L FACTORS FOK CO\TSID- EIi~TION.- "(i) Iv GE1~'ERAL.-Irl ~~romulgating a. standard unde~~• this paragraph, the ~1drr-in- istrator shall take into conside~~atiorl- "(I) whether the engine is newly- mannfa,ctured or in-nsc (and, if the engine is in-use, the age of the et~-- pine) ; "(II) the cost of apph~ing an cmission reduction. technology in a pe- riod of tune sufficient to achieve com- pliance with the standard; "(III) noise, energy, and safety factors associated with the a,pp]ication of the technology; and "(N) the fusibility, benefits, a,nd costs of regnirin 8 1 "(aa.) the ma~in~urn level of 2 control required by re~;lzlations 3 applicable to on-road, nor~r•oad, 4 and stationar.v engines; and 5 "(bb) the lna~~imurn level of 6 control achieved by sources from 7 which control technologies may 8 be transferred, including sources 9 that use adva.nccd a,ftcl•trcatrne~~t 10 ~ technolo~,les. Il "(i1~ DETERI~IINATION.- IZ "(I~ I\ GENEPAI~.-If the l~d- 13 ministrator determines, after consider- 14 a,tion of the factors described in clause 15 (i), that a maximum level of control 16 described in clause (i) (N) will not be 17 ~ technically a,chic~-ahlc by January 1, 18 2012, the Administrator shall Uronnrl- 19 gate standards under subpara~;~ra,pl~i 20 (~) that require tie maximum level of 21 control that the Administrator deter- 22 mines ~~~il] be technically achievable by 23 that date. 24 "(II) ~nvl2~IO~ ~r~ s r ~~Tn<trns.- 25 If the Administrator rlia,kes a, detcr- •S 1499 IS 9 1 urination under subcla~use (I), the Ad- 2 ministrator shall promnlgatc a~ddi- 3 tional standards tulder• subparagraph 4 (A) that require, effective beginning 5 on January 1, 2016 6 "(aa,) the m~~Xirnnrn level of 7 control described in clansc 8 (i) (N); or• 9 "(bb) if the 1ldministrator 10 determines, after consideration of ll the factors described in clause 12 (i), that a maximum level of con- 13 trol described in subclausc (N) 14 of that clause is not technically 15 achievable by Janua,r•~~ 7 , 207 6, 16 the maximum le~-el of control 17 that the 1ldministrator dctcr- 18 mines will be technically acl~~iev- 19 able by that date. 20 "(2) nPPLrc.~ILrrY.-Standards applicable to 21 marine engines and marine vessels prarnulgated 22 under this section shall be applicable to ~-essels that 23 enter or lea~-e a port or offshore terminal of ttie 24 United States, including ~-essels flagged in any coun- 25 try other than the United States. •S 1499 IS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 10 "(~~ E\FORCEl~IE1~T.- "(1~) IN GI+J~Th;I~:~I~.-The standards estab- lished under this subsection shall be enforced in accordance «~ith subsection (f). "(13) E\FORCEI~IEl~T AGILINST CER'P~1I\ PERSONS.-At tl~ie discretion of the lldr~iinis- trator, anv standard established under this sub- section relating to in-use engines ma~,y be en- forced against- "O the owner or oper•a,tor of an in- case engine; "(ii) any person that rebuilds or maintains an in-case cn~•inc; or "(iii) such other person as the Admin- istratar~ determines to be appropriate. "(4~ NO EFFECT ON OTHEP AUTIIORITY.- Nothing in tl~ris subsection limits or othertivise affects any authority of the Administrator to rcgula~tc emis- sions of engines in marine vessels under this Act or any other provision of law.". O •S 1499 IS AB844 (Berryhill and Maze) Junk dealers and recyclers: nonferrous material AGENDA REPORT MEETING DATE: JULY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: SCOTT M. JORDAN, CHIEF OF POLICE SUBJECT: ASSEMBLY BILL 844 -CALIFORNIA JUNK DEALERS SUMMARY: AB 844 (Berryhill and Maze) is proposed to amend prior law related to California Junk Dealers. The Bill is considered emergency legislation that addresses the rising state and national problem concerning theft of certain nonferrous materials. RECOMMENDATION: Pleasure of the Council. FISCAL IMPACT: There is no real fiscal impact associated with this item. BACKGROUND: Sections 21606, 21606.5, and 21609 of the Business and Professions Code govern Junk Dealers and Recyclers. In the last few years, the theft of nonferrous materials has increased dramatically. Under these aforementioned sections, there were several "loopholes" that allowed individuals to sell nonferrous materials to Junk Dealers and Recyclers. AB 844 closes most of these "loopholes" by amending the existing Codes and adding Section 21608.5 to the Code. The important changes to these sections are as follows: • The Junk Dealer or Recycler must keep a written record of all sales and purchases and the information included in those written records must be reported to the local police or Sheriff on a monthly basis. These records are required to be kept by the Dealer or Recycler for a period of two years. • The information for the record required by the Dealer or Recycler includes: the date and location of each sale or purchase; the name and valid driver's license or state ID number of the individual involved. The Dealer or Recycler will also obtain the individual's thumbprint. • Vehicle license of the motor vehicle used in the purchase or sale. • Payment for said material will be made by cash or check to be given or issued not less than three days after said purchase or sale. Page 2 • During normal business hours, on a periodic basis, the Dealer or Recycler must allow inspection of any premises for the purpose of determining compliance with recordkeeping requirements. • Willful violations of recordkeeping requirements are punishable by specified fines or fines and imprisonment. Repeated violations of these requirements can result in the business being closed for business for periods .ranging from 30 days to one year. • The Bill requires the court to order the defendant to pay the victim for the value of the property stolen and any reasonable collateral damage caused in the commission of the theft. AB 844 brings these sections in line with Business and Profession Code Sections 21625 - 21647. These sections regulate secondhand dealers commonly referred to as Pawnshops. These sections have been successfully used, for years, by law enforcement in locating stolen property and identifying suspects. SCOTT M. JORDAN Chief of Police July 15, 2008 Assembly Member Tom Berryhill State Capitol, Room 4116 Sacramento, CA 94249-0025 RE: NOTICE OF SUPPORT AB844 (BERRYHILL AND MAZE) -CALIFORNIA JUNK DEALERS Dear Assembly Member Berryhill: The City of Tustin is in support of your measure, AB844, which closes most of the "loopholes" by amending Business and Professions Code Sections 21606, 21606.5 and 21609, as well as adding 21608.5. These "loopholes" allow individuals to sell nonferrous materials to Junk Dealers and Recyclers. The City of Tustin has experienced a significant increase in theft of nonferrous materials during the past few years. Under the existing law, our Police Department is somewhat hampered in investigating these crimes, as the stolen items are unable to be traced or identified. The proposed .amendments to the existing law will greatly increase the investigative capabilities of the Department's personnel to combat these thefts. The new proposed law will put the onus on the dealers and recyclers to keep accurate records of transactions similar to the State Pawn system. The City of Tustin believes that if AB844 is passed, it will deter the theft of these materials by making the resale of the stolen items extremely more difficult. It will also provide our City and Police Department much improved laws to utilize in addressing these issues in the legal system. For all of these reasons, the City of Tustin is in support of AB844. Sincerely, Jerry Amante Mayor Cc: Senator Ackerman Assembly Member De Vore Assembly Member Spitzer Assembly Member Bill Emmerson Assembly Member Bill Maze Assembly Woman Bonnie Garcia Assembly Woman Cathleen Galgiani Assembly Woman Nicole Parra Senator Greg Aghazarian Senator Abel Maldonado Representative Dave Cogdill Senator Jeff Denham Bill Higgins, League of California Cities Orange County City Managers CA Codes (bpc:21600-21609.5) BUSINESS AND PROFESSIONS CODE SECTION 21600-21609.5 21600. As used in this article, "junk" means any and all secondhand and used machinery and all ferrous and nonferrous scrap metals and alloys, including any and all secondhand and used furniture, pallets, or other personal property, other than livestock, or parts or portions thereof. As used in this section, "scrap metals and alloys" includes, but is not limited to, materials and equipment commonly used in construction, agricultural operations and electrical power generation, railroad equipment, oil well rigs, nonferrous materials, stainless steel, and nickel which are offered for sale to any junk dealer or recycler, but does not include scrap iron, household generated waste, or aluminum beverage containers, as defined in Chapter 2 (commencing with Section 14502) of Division 12.1 of the Public Resources Code. 21601. As used in this article, "junk dealer" includes any person engaged in the business of buying, selling and dealing in junk, any person purchasing, gathering, collecting, soliciting or traveling about from place to place procuring junk, and any person operating, carrying on, conducting or maintaining a junk yard or place where junk is gathered together and stored or kept for shipment, sale or transfer. 21602. As used in this article, "junk yard" includes any yard, plot, space, inclosure, building or any other place where junk is collected, stored, gathered together and kept. 21603. This article shall not apply to any of the following: (a) Secondhand furniture merchants. (b) Pawnbrokers. (c) Secondhand car dealers or merchants in connection with automobile and motor vehicle sales agencies but not carried on and conducted in conjunction with a junk yard. (d) Persons engaged in the business of selling new automobile tires or batteries or other equipment taking in part payment used articles of the same kind and thereafter selling or disposing of the same. (e) Secondhand oil well supply and equipment dealers not conducting or carrying on their business in connection with a junk yard. (f) Secondhand clothing merchants and ragpickers. 21604. Except as otherwise provided in this article, this article does not apply to: (a) Any person who buys or sells junk acquired in the conduct of Page 1 of 4 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=21001-22000&file=... 07/03/2008 CA Codes (bpc:21600-21609.5) any business other than that of a junk dealer. (b) Those purchases of scrap metal by a junk dealer when the payment for the scrap metal is by check issued to the company represented as being the owner of the scrap. (c) Scrap metal purchased or received from another junk dealer or recycler who has recorded, reported, and held the material as required. The purchase or receipt shall also be exempt from further holding or reporting provided that the selling party gives the buyer written assurance of this fact. The seller shall be held responsible for any failure to report or hold. 21605. (a) Every junk dealer and every recycler in this state is hereby required to keep a written record of all sales and purchases made in the course of his or her business. (b) For purposes of this article, "recycler" means any processor, recycling center, or noncertified recycler, as those terms are defined in Chapter 2 (commencing with Section 14502) of Division 12.1 of the Public Resources Code, who buys or sells scrap metal that constitutes junk, as defined in Section 21600. 21606. (a) Every junk dealer and every recycler shall set out in the written record required by this article all of the following: (1) The place and date of each sale or purchase of junk made in the conduct of his or her business as a junk dealer or recycler. (2) The name, valid driver's license number and state of issue or California-issued identification card number, and vehicle license number including the state of issue of any motor vehicle used in transporting ,the junk to the junk dealer's or recycler's place of business. (3) The name and address of each person to whom junk is sold or disposed of, and the license number of any motor vehicle used in transporting the junk from the junk dealer's or recycler's place of business. (4) A description of the item or items of junk purchased or sold, including the item type and quantity, and identification number, if visible. (5) A statement indicating either that the seller of the junk is the owner of it, or the name of the person he or she obtained it from, as shown on a signed transfer document. (b) Any person who makes, or causes to be made, any false or fictitious statement regarding any information required by this section, is guilty of a misdemeanor. 21606.5. Every junk dealer or recycler shall, during normal business hours, allow periodic inspection of any premises maintained and any junk thereon for the purpose of determining compliance with the recordkeeping requirements of this article, and shall during those hours produce his or her records of sales and purchases and all property purchased incident to those transactions which is in the possession of the junk dealer or recycler for inspection by any of the following persons: (a) Any officer holding a warrant authorizing him or her to search for personal property. (b) Any person appointed by the sheriff of any county or appointed Page 2 of 4 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=21001-22000&file=... 07/03/2008 CA Codes (bpc:21600-21609.5) Page 3 of 4 by the head of the police department of any city. (c) Any officer holding a court order directing him or her to examine the records or property. 21607. Every junk dealer and recycler shall preserve the written record required by this article for at least two years after making the final entry of any purchase or sale of junk or scrap metals and alloys as defined in Section 21600. 21608. (a) Any junk dealer or recycler who fails in any respect to keep the written record required by this article, or to set out in that written record any matter required by this article to be set out therein, is guilty of a misdemeanor. Every junk dealer or recycler who refuses, upon demand pursuant to Section 21606.5, to exhibit the written record required by this article, or who destroys that record within two years after making the final entry of any purchase or sale of junk therein, is guilty of a misdemeanor. (b) Any knowing and willful violation of subdivision (a) shall be punishable as follows: (1) For a first offense, by a fine of not less than five hundred dollars ($500), or by imprisonment in the county jail for not less than 30 days, or by both the fine and imprisonment. (2) For a second offense, by a fine of not less than one thousand dollars ($1,000), or by imprisonment in the county jail for not less than 30 days, or by both the fine and imprisonment. In addition to any other sentence imposed pursuant to this paragraph, the court may order the defendant to stop engaging in business as a junk dealer or recycler for a period not to exceed 30 days. (3) For a third or any subsequent offense, by a fine of not less than two thousand dollars ($2,000), or by imprisonment in the county jail for not less than six months, or by both the fine and imprisonment. In addition to any other sentence imposed pursuant to this paragraph, the court shall order the defendant to stop engaging in business as a junk dealer or recycler for a period of 30 days. 21609. (a) Whenever any peace officer has probable cause to believe that property in the possession of a junk dealer or recycler is stolen, in lieu of seizing the property, the peace officer as defined in subdivision (b) of Section 21606. 5, at his or her option, may place a hold on the property for a period not to exceed 90 days. When a peace officer places a hold on the property, the peace officer shall give the junk dealer or recycler a written notice at the time the hold is placed, describing the item or items to be held plus the case number. During that period the junk dealer or recycler shall not release or dispose of the property, except pursuant to a court order or upon receipt of a written authorization signed by any peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. Except as specifically set forth in this section, a junk dealer or recycler shall not be subject to civil liability for compliance with this section. (b) Whenever property that is in the possession of a junk dealer or recycler is subject to a hold and the property is required by a http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=21001-22000&file=... 07/03/2008 CA Codes (bpc:21600-21609.5) peace officer in a criminal investigation, the junk dealer or recycler, upon reasonable notice, shall produce the property at reasonable times and places or may deliver the property to any peace officer upon the request of any peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. (c) Whenever property that is in the possession of a junk dealer or recycler is subject to a hold and the property is no longer required for the purpose of criminal investigation, the law enforcement agency that placed the hold on the property shall undertake the following: (1) With respect to the property being held, if the law enforcement agency has no knowledge of the property on hold being reported as stolen, the property shall be released upon written notice to the scrap metal dealer or recycler. The notice shall be provided in a timely fashion. (2) If the law enforcement agency has knowledge that the property has been reported stolen, the law enforcement agency shall notify the person who reported the stolen property of the name and address of the junk dealer or recycler holding the property and authorize the release of the property to that person. The law enforcement agency that placed the property on hold shall release the hold after 60 days has elapsed following the delivery of the notice to the person who reported the property stolen. (3) If a victim seeks to recover property that is subject to a hold, the junk dealer or recycler shall advise the victim of the name and badge number of the peace officer who placed the hold on the property and the name of the law enforcement agency of which the officer is a member. If the property is not required to be held pursuant to a criminal prosecution the hold shall be released. (d) Upon conviction of any person for the theft of property placed on hold pursuant to this section, the court shall order the defendant to pay the junk dealer or recycler reasonable costs for storage of the property. 21609.5. (a) Except as provided in subdivision (b), no junk dealer or recycler may purchase or receive refillable stainless steel or aluminum alloy beer kegs marked with an indicia of ownership from any person or entity other than the indicated owner. For purposes of this section, "indicia of ownership" means words, symbols, or registered trademarks printed, stamped, etched, attached, or otherwise displayed on the exterior surface of the beer keg that reasonably identifies the owner. (b) If the seller is not the indicated owner, a junk dealer or recycler may purchase or receive refillable stainless steel or aluminum alloy beer kegs only if the seller or transferor provides a receipt from the indicated owner verifying the seller's current ownership or a document indicating that the seller or transferor is authorized by the indicated owner to sell or transfer the beer kegs. Copies of these documents shall be maintained by the junk dealer or recycler as part of the written record of the transaction. Page 4 of 4 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=21001-22000&file=... 07/03/2008 AMENDED IN SENATE JUNE 25, 2008 AMENDED IN SENATE JUNE 19, 2008 AMENDED IN SENATE MAY 29, 2008 AMENDED IN SENATE APRIL 30, 2008 AMENDED IN SENATE JUNE 26, 2007 AMENDED IN SENATE JUNE 19, 2007 AMENDED IN ASSEMBLY JUNE 1, 2007 AMENDED IN ASSEMBLY MAY 1, 2007 AMENDED IN ASSEMBLY APRIL 9, 2007 CALIFORNIA LEGISLATURE-200]-OS REGULAR SESSION ASSEMBLY BILL No. 844 Introduced by Assembly Members Berryhill and Maze (Principal coauthors: Assembly Members Galgiani and Garrick) (Principal coauthors: Senators Calderon, Cogdill, and Maldonado) (Coauthors: Assembly Members Adams, Aghazarian, Anderson, Arambula, Benoit, Blakeslee, Cook, DeVore, Emmerson, Fuller, Gaines, Garcia, Horton, Houston, Huff, Jeffries, Keene, La Malfa, Ma, Mullin, Nakanishi, Niello, Parra, Plescia, Sharon Runner, Salas, Silva, Smyth, Spitzer, Strickland, Tran, Villines, and Walters) (Coauthors: Senators 11TI~1GGDenham, Florez, and Yee) February 22, 2007 An act to amend Sections 21606, 21606.5, 21608, and 21609 of, and to add Section 21608.5 to, the Business and Professions Code, relating 90 AB 844 - 2 to junk dealers, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 844, as amended, Berryhill. Junk dealers and recyclers: nonferrous material. Existing law requires junk dealers and recyclers, as defined, to keep written records of all sales and purchases made in the course of their business. Existing law requires these records to include, among other things, the place and date of each sale or purchase of junk, a description of the item of junk, and the personal and vehicle information of the person selling, purchasing, or transporting the junk. Existing law exempts certain purchases of scrap metals by a junk dealer or recycler from these provisions. A violation of the provisions regulating junk dealers and recyclers is a crime. This bill would require a junk dealer or recycler to report the information included in those written records to the chief of police or sheriff, as specified, upon request and on a monthly basis. The bill would authorize the chief of police or sheriff to request weekly reports for no more than a 2-month period, except as specified, if there is an ongoing investigation of the junk dealer or recycler concerning possible criminal activity. This bill would prohibit a junk dealer or recycler from providing payment for nonferrous material, as defined, unless the payment is made by cash or check, the check is mailed or the cash or check is provided no earlier than 3 days after the date of sale, and the dealer or recycler obtains certain identifying information, as specified, to be retained by the dealer or recycler for a certain period of time. The bill would specify an exception to the payment by cash or check requirement and provide that these requirements do not apply to the redemption of nonferrous materials of a certain value at a recycling center, as specified, or to coin dealers or automobile dismantlers. The bill would also prohibit a city, county, or city and county from adopting an ordinance related to junk dealer or recycler transactions involving nonferrous material, except under specified circumstances. Under existing law, a knowing and willful violation of the recordkeeping requirements applicable to junk dealers and recyclers is punishable by specified fines, by imprisonment in the county jail for a specified period of time, or by both that fine and imprisonment. Existing 90 3 - AB 844 law requires that, fora 3rd or subsequent violation, the court order the defendant to stop engaging in business as a junk dealer or recycler for a period of 30 days. This bill would increase the minimum fines for those violations, as specified, and would also require the court, fora 3rd or subsequent violation, to order the defendant to stop engaging in business as a junk dealer or recycler for a period of not less than one year. Under existing law, when a peace officer has probable cause to believe that property in the possession of a junk dealer or recycler is stolen, the peace officer may place a hold on that property. Existing law requires a court, upon conviction of a person for the theft of that property, to order the defendant to pay the reasonable costs for the storage of the property. This bill would also require the court to order the defendant to pay the victim for the value of the property stolen and any reasonable collateral damage caused in the commission of the theft. Because a violation of this bill's provisions would be a crime, the bill would impose aatate-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute. Vote: /3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 21606 of the Business and Professions 2 Code is amended to read: 3 21606. (a) Every junk dealer and every recycler shall set out 4 in the written record required by this article all of the following: 5 (1) The place and date of each sale or purchase of junk made 6 in the conduct of his or her business as a junk dealer or recycler. 7 (2) The name, valid driver's license number and state of issue 8 orCalifornia-issued identification card number, and vehicle license 9 number including the state of issue of any motor vehicle used in 90 AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4 transporting the junk to the junk dealer's or recycler's place of business. (3) The name and address of each person to whom junk is sold or disposed of, and the license number of any motor vehicle used in transporting the junk from the junk dealer's or recycler's place of business. (4) A description of the item or items of junk purchased or sold, including the item type and quantity, and identification number, if visible. (5) A statement indicating either that the seller of the junk is the owner of it, or the name of the person he or she obtained it from, as shown on a signed transfer document. (b) A person who makes, or causes to be made, a false or fictitious statement regarding any information required by this section is guilty of a misdemeanor. (c) (1 } Every junk dealer and every recycler shall report the information required under subdivision (a) to the chief of police, if the dealer's or recycler's business is located in a city, or to the sheriff, if the dealer's or recycler's business is located in an unincorporated part of a county, upon request of the chief of police or sheriff and on a monthly basis, except as provided in paragraph (2}. (2) The chief of police or sheriff may request the report described in this section on a weekly basis if there is an ongoing investigation of the junk dealer or recycler concerning possible criminal activity. The chief of police or sheriff may request weekly reports for no more than atwo-month period unless the investigation of the junk dealer or recycler continues and the chief of police or sheriff makes a subsequent request for weekly reports for an additional two-month period or part thereof. SEC. 2. Section 21606.5 of the Business and Professions Code is amended to read: 21606.5. Every junk dealer or recycler shall, during normal business hours, allow periodic inspection of any premises maintained and any junk thereon for the purpose of determining compliance with the recordkeeping requirements of this article, and shall during those hours produce his or her records of sales and purchases, except as provided in paragraph (3) of subdivision (a) of Section 21608.5, and all property purchased incident to those 90 5 - AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 transactions which is in the possession of the junk dealer or recycler for inspection by any of the following persons: (a) An officer holding a warrant authorizing him or her to search for personal property. (b) A person appointed by the sheriff of a county or appointed by the head of the police department of a city. (c) An officer holding a court order directing him or her to examine the records or property. SEC. 3. Section 21608 of the Business and Professions Code is amended to read: 21608. (a) A junk dealer or recycler who fails in any respect to keep the written record required by this article, or to set out in that written record any matter required by this article to be set out therein, is guilty of a misdemeanor. Every junk dealer or recycler who refuses, upon demand pursuant to Section 21606.5, to exhibit the written record required by this article, or who destroys that record within two years after malting the final entry of a purchase or sale of junk therein, is guilty of a misdemeanor. (b) Any knowing and willful violation of subdivision (a) shall be punishable as follows: (1) For a first offense, by a fine of not less than one thousand dollars ($1,000), or by imprisonment in the county jail for not less than 30 days, or by both that fine and imprisonment. (2) For a second offense, by a fine of not less than two thousand dollars ($2,000), or by imprisonment in the county jail for not less than 30 days, or by both that fine and imprisonment. In addition to any other sentence imposed pursuant to this paragraph, the court may order the defendant to stop engaging in business as a junk dealer or recycler for a period not to exceed 30 days. (3) For a third or any subsequent offense, by a fine of not less than four thousand dollars ($4,000), or by imprisonment in the county jail for not less than six months, or by both that fine and imprisonment. In addition to any other sentence imposed pursuant to this paragraph, the court shall order the defendant to stop engaging in business as a junk dealer or recycler for not less than one year. SEC. 4. Section 21608.5 is added to the Business and Professions Code, to read: 90 AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 6 21608.5. (a) A junk dealer or recycler in this state shall not provide payment for nonferrous material unless, in addition to meeting the written record requirements of Sections 21605 and 21606, all of the following requirements are met: (1) The payment for the material is made by cash or check. The check may be mailed to the seller at the address provided pursuant to paragraph (2) or the cash or check may be collected by the seller from the junk dealer or recycler on the third business day after the date of sale. (2) (A) Except as provided in subparagraph (B), the junk dealer or recycler obtains a copy of the valid driver's license of the seller containing a photograph and an address of the seller or a copy of a state or federal government-issued identification card containing a photograph and an address of the seller. (B) If the seller prefers to have the check for the material mailed to an alternative address, other than a post office box, the junk dealer or recycler shall obtain a photograph or video of the seller, or a copy of a driver's license or identification card described in subparagraph (A), and a gas or electric utility bill addressed to the seller at that alternative address with a payment due date no more than two months prior to the date of sale. For purposes of this paragraph, "alternative address" means an address that is different from the address appearing on the seller's driver's license or identification card. (C) The junk dealer or recycler obtains a photograph or video of the nonferrous material being purchased. (D) The junk dealer or recycler shall preserve the information obtained pursuant to this paragraph for a period of two years after the date of sale. (3) The junk dealer or recycler obtains a thumbprint of the seller, as prescribed by the Department of Justice. The junk dealer or recycler shall keep this thumbprint with the information obtained under paragraph (2) and shall preserve the thumbprint in either hard copy or electronic format for a period of two years after the date of sale. The junk dealer or recycler shall make the thumbprint available to a person listed in Section 21606.5 only if that person has probable cause to believe that property in the possession of the junk dealer or recycler has been stolen. The seller shall acknowledge this disclosure requirement in writing. 90 7 - AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (b) Paragraph (1) of subdivision (a) shall not apply if, during any three-month period commencing on or after the effective date of this section, the junk dealer or recycler completes five or more separate transactions per month, on five or more separate days per month, with the seller and, in order for paragraph (1) of subdivision (a) to continue to be inapplicable, the seller must continue to complete five or more separate transactions per month with the junk dealer or recycler. (c) This section shall not apply if, on the date of sale, the junk dealer or recycler has on file or receives all of the following information: (1) The name, physical business address, and business telephone number of the seller's business. (2) The business license number or tax identification number of the seller's business. (3) A copy of the valid driver's license of the person delivering the nonferrous material on behalf of the seller to the junk dealer or the recycler. (d) This section shall not apply to the redemption of nonferrous material having a value of not more than twenty dollars ($20) in a single transaction, when the primary purpose of the transaction is the redemption of beverage containers under the California Beverage Container Recycling and Litter Reduction Act, as set forth in Division 12.1 (commencing with Section 14500) of the Public Resources Code. (e) This section shall not apply to coin dealers or to automobile dismantlers, as defined in Section 220 of the Vehicle Code. (~ For the purposes of this section, "nonferrous material" means copper, copper alloys, stainless steel, or aluminum, but does not include beverage containers, as defined in Section 14505 of the Public Resources Code, that are subject to a redemption payment pursuant to Section 14560 of the Public Resources Code. (g) This section is intended to occupy the entire field of law related to junk dealer or recycler transactions involving nonferrous material, ~ ~ '' ~~ te~i~t~ri~-st~t~. However, a city or county ordinance, or a city and county ordinance, relating to the subject matter of this section is not in conflict with this section if the ordinance ispassed by atwo-thirds vote and it can be demonstrated by clear and convincing evidence that the ordinance is both necessary and addresses a unique problem within and specific to 90 AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 8 the jurisdiction of the ordinance that cannot effectively be addressed under this section. SEC. 5. Section 21609 of the Business and Professions Code is amended to read: 21609. (a) Whenever a peace officer has probable cause to believe that property in the possession of a junk dealer or recycler is stolen, in lieu of seizing the property, the peace officer as defined in subdivision (b) of Section 21606.5, at his or her option, may place a hold on the property for a period not to exceed 90 days. When a peace officer places a hold on the property, the peace officer shall give the junk dealer or recycler a written notice at the time the hold is placed, describing the item or items to be held plus the case number. During that period the junk dealer or recycler shall not release or dispose of the property, except pursuant to a court order or upon receipt of a written authorization signed by a peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. Except as specifically set forth in this section, a junk dealer or recycler shall not be subject to civil liability for compliance with this section. (b) Whenever property that is in the possession of a junk dealer or recycler is subject to a hold and the property is required by a peace officer in a criminal investigation, the junk dealer or recycler, upon reasonable notice, shall produce the property at reasonable times and places or may deliver the property to any peace officer upon the request of any peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. (c) Whenever property that is in the possession of a junk dealer or recycler is subject to a hold and the property is no longer required for the purpose of criminal investigation, the law enforcement agency that placed the hold on the property shall undertake the following: (1) With respect to the property being held, if the law enforcement agency has no knowledge of the property on hold being reported as stolen, the property shall be released upon written notice to the junk dealer or recycler. The notice shall be provided in a timely fashion. (2) If the law enforcement agency has knowledge that the property has been reported stolen, the law enforcement agency 90 9 - AB 844 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 shall notify the person who reported the stolen property of the name and address of the junk dealer or recycler holding the property and authorize the release of the property to that person. The law enforcement agency that placed the property on hold shall release the hold after 60 days has elapsed following the delivery of the notice to the person who reported the property stolen. (3) If a victim seeks to recover property that is subject to a hold, the junk dealer or recycler shall advise the victim of the name and badge number of the peace officer who placed the hold on the property and the name of the law enforcement agency of which the officer is a member. If the property is not required to be held pursuant to a criminal prosecution the hold shall be released. (d) Upon conviction of a person for the theft of property placed on hold pursuant to this section, the court shall order the defendant to do both of the following: (1) Pay the junk dealer or recycler reasonable costs for the storage of the property. (2) Pay the victim for both the value of the property stolen and any reasonable collateral damage caused in the commission of the theft. SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. SEC. 7. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to address statewide concerns related to public safety, and to decrease the rising theft of nonferrous materials, it is necessary that this act take effect immediately. 0 90