Stop Flood Insurance Rate Hikes Act
This bill allows National Flood Insurance Program policyholders to elect to pay premiums at the rate in effect prior to the implementation of Risk Rating 2.0 and to receive refunds for previously paid premiums. Risk Rating 2.0 bases premium rates on an individual property's specific flood risk instead of the flood risk of a general location and property type.
Policyholders may elect to pay the previous rate until the Federal Emergency Management Agency performs several actions regarding Risk Rating 2.0, including
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7364 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7364
To permit policyholders under the National Flood Insurance Program to
elect to have previous premium rates remain in effect until the
Administrator of the Federal Emergency Management Agency satisfies
certain conditions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2022
Mr. Graves of Louisiana (for himself, Mr. Pascrell, Mr. Weber of Texas,
Mr. Carter of Louisiana, Mr. Pallone, and Mr. Rouzer) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To permit policyholders under the National Flood Insurance Program to
elect to have previous premium rates remain in effect until the
Administrator of the Federal Emergency Management Agency satisfies
certain conditions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Flood Insurance Rate Hikes
Act''.
SEC. 2. CHARGEABLE PREMIUM RATES.
(a) Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Federal Emergency Management Agency; and
(2) the term ``National Flood Insurance Program'' means the
program established under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.).
(b) Option for Policyholders.--
(1) In general.--Notwithstanding section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015), a
policyholder under the National Flood Insurance Program may
elect to have the chargeable premium rate for the applicable
property of the policyholder, as in effect on April 1, 2020,
apply and remain in effect during the period beginning on the
date of enactment of this Act and ending on the date on which
the Administrator completes all of the actions described in
subsection (c), without regard to the chargeable premium rate
that is in effect for that property, as of the day before the
date of enactment of this Act.
(2) Notification requirement.--The Administrator shall
provide each policyholder under the National Flood Insurance
Program a notification regarding the right of the policyholder
under paragraph (1).
(3) Refund.--The Administrator shall provide for a refund
to each policyholder making the election pursuant to paragraph
(1) in the amount of any chargeable premiums paid in excess of
the chargeable premium rate for the property as in effect on
April 1, 2020, and attributable to coverage during the period
beginning on such date and ending upon the date that such
election takes effect.
(c) Required Actions.--The actions of the Administrator described
in this subsection are as follows:
(1) Makes available to the public all data and methods used
to prescribe chargeable premium rates for types and classes of
properties for which insurance coverage is available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)
(referred to in this subsection as ``chargeable premium
rates'') under Risk Rating 2.0, or any substantially similar
methodology.
(2) Creates an online database that is available to
policyholders under the National Flood Insurance Program that
provides each such policyholder with information regarding what
the chargeable premium rate for the applicable property of the
policyholder would be--
(A) under Risk Rating 2.0, or any substantially
similar methodology; and
(B) assuming that the limitation under section
1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) were not in effect.
(3) Completes and publishes a comprehensive assessment of
the economic, social, and environmental impacts of implementing
Risk Rating 2.0 (or any substantially similar methodology)
during the 20-year period beginning in the year in which the
assessment is made, which shall include an evaluation of the
effect that such implementation will have, during that 20-year
period, on--
(A) the affordability and availability of flood
insurance under the National Flood Insurance Program;
(B) property values;
(C) non-Federal Government revenues;
(D) the expected cost increases and exacerbation of
inequality for low- and moderate-income policy holders,
particularly year-over-year policy rate changes under
the 18 percent limitation under section 1308(e)(1) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4015(e)(1));
(E) how modifications to the National Flood
Insurance Program on implementing Risk Rating 2.0, or
any substantially similar methodology, including any
modifications under the Administrator's notice of
availability of the record of decision for the final
nationwide programmatic environmental impact statement
(83 Fed. Reg. 24328), will impact climate resiliency of
policy holders and communities; and
(F) how specific premium savings can be accessed by
mitigation measures, including how home builders can
determine the offset of increased cost of construction
imposed by implementing such measures, the regional
development of community flood risk measures, and
updating building codes.
(4) Supplements (and revises, as appropriate) the Record of
Decision for the final nationwide programmatic environmental
impact statement evaluating the environmental impacts of
proposed modifications to the National Flood Insurance Program
(83 Fed. Reg. 24328) to include the impacts of implementing
Risk Rating 2.0, or any substantially similar methodology.
(5) Demonstrates that the data and methods used to
prescribe chargeable premium rates under Risk Rating 2.0, or
any substantially similar methodology, satisfy the requirements
under section 515 of the Consolidated Appropriations Act, 2001
(Public Law 106-554; 114 Stat. 2763A-153), including that, in
implementing that methodology, the Administrator ensures and
maximizes the quality, objectivity, utility, and integrity of
information disseminated by the Administrator.
(6) Conducts public notice and comment rulemaking under
chapter 5 of title 5, United States Code, regarding Risk Rating
2.0, or any substantially similar methodology, which shall
include the development of a fair, transparent, and streamlined
process to manage--
(A) disputes over chargeable premium rates; and
(B) other factors with respect to the
implementation of that methodology.
(7) For each county in the United States, publishes the
distribution of chargeable premium rates showing the median,
mean, lower and upper quartiles, maximum amount, and minimum
amount of chargeable premium rates under each of the following:
(A) The method used to prescribe chargeable premium
rates, as of September 30, 2021.
(B) The methodology projected to be used to
prescribe chargeable premium rates, as of April 1,
2022, assuming that the limitations under section
1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) are applied.
(C) The methodology described in subparagraph (B),
assuming that the limitations described in that
subparagraph are not applied.
(D) The methodology described in subparagraph (B),
assuming that--
(i) the limitations described in that
subparagraph are applied; and
(ii) the administrative costs of the
National Flood Insurance Program are allocated
on a uniform, per contract basis rather than as
allocated under Risk Rating 2.0, or any
substantially similar methodology.
(E) The methodology described in subparagraph (B),
assuming that--
(i) the limitations described in that
subparagraph are not applied; and
(ii) the administrative costs of the
National Flood Insurance Program are allocated
on a uniform, per contract basis rather than as
allocated under Risk Rating 2.0, or any
substantially similar methodology.
(8) Submits to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report detailing the
satisfaction of the requirements under paragraphs (1) through
(7).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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