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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5199 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5199
To reauthorize the National Flood Insurance Program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Casey introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reauthorize the National Flood Insurance Program, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair Flood
Protection Act of 2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--REAUTHORIZATION AND STABILIZATION
Sec. 101. Reauthorization.
Sec. 102. Forbearance on National Flood Insurance Program interest
payments.
Sec. 103. Elimination of Community Rating System.
Sec. 104. Write Your Own Program reform.
TITLE II--RATE REPORTING AND POLICYHOLDER ASSISTANCE
Sec. 201. Sense of Congress.
Sec. 202. Premium transparency.
Sec. 203. Flood Protection Affordability Program and Trust Fund.
TITLE III--FEE REDUCTION AND CONSOLIDATION
Sec. 301. Reserve Fund assessment.
Sec. 302. Flood Insurance Program Stability Fee.
TITLE IV--RESILIENCE
Sec. 401. Levee project identification and development program.
Sec. 402. Authorization of appropriations for the STORM Act.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency.
(2) Agency.--The term ``Agency'' means the Federal
Emergency Management Agency.
(3) Community rating system.--The term ``Community Rating
System'' means the community rating system program carried out
under section 1315(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4022(b)).
(4) National flood insurance program.--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.).
(5) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(6) Write your own company.--The term ``Write Your Own
Company'' means a private property insurance company that
participates in the Write Your Own Program.
(7) Write your own program.--The term ``Write Your Own
Program'' means the program under which the Federal Emergency
Management Agency enters into a standard arrangement with
private property insurance companies to--
(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
(B) adjust and pay claims arising under the
contracts described in subparagraph (A).
TITLE I--REAUTHORIZATION AND STABILIZATION
SEC. 101. REAUTHORIZATION.
(a) Financing.--Section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30,
2023'' and inserting ``September 30, 2034''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2023'' and inserting ``September 30, 2034''.
(c) Retroactive Effective Date.--If this Act is enacted after
September 30, 2024, the amendments made by subsections (a) and (b)
shall take effect as if enacted on September 30, 2024.
SEC. 102. FORBEARANCE ON NATIONAL FLOOD INSURANCE PROGRAM INTEREST
PAYMENTS.
(a) In General.--During the 20-year period beginning on the date of
enactment of this Act, the Secretary of the Treasury may not charge the
Administrator interest on amounts borrowed by the Administrator under
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)) that were outstanding as of the date of enactment of this Act,
including amounts borrowed after the date of enactment of this Act that
refinance debts that existed before the date of enactment of this Act.
(b) Use of Foregone Interest Payments.--There shall be deposited
into the National Flood Mitigation Fund established under section 1367
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d) an amount
equal to the interest that would have accrued on the borrowed amounts
during the 20-year period described in subsection (a) at the time at
which those interest payments would have otherwise been paid, which,
notwithstanding any provision of such section 1367, the Administrator
shall use to carry out the program established under section 1366 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4104c).
(c) No Retroactive Accrual.--After the 20-year period described in
subsection (a), the Secretary of the Treasury shall not require the
Administrator to repay any interest that, but for that subsection,
would have accrued on the borrowed amounts described in that subsection
during that 20-year period.
SEC. 103. ELIMINATION OF COMMUNITY RATING SYSTEM.
(a) Findings.--Congress finds the following:
(1) The Community Rating System, while well-intentioned,
has provided discounts to policyholders that are not
actuarially justified.
(2) The discounts described in paragraph (1) have furthered
the financial insolvency of the National Flood Insurance
Program.
(3) With the transition by the Agency towards
individualized premiums rather than community-based premiums,
the Community Rating System should be phased out.
(b) Phase-Out.--Section 1315(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4022(b)) is amended by adding at the end the
following:
``(4) Phase-out.--Not earlier than 2 years and not later
than 4 years after the date of enactment of this paragraph, the
Administrator shall--
``(A) terminate the community rating system program
established under paragraph (1); and
``(B) remove credits from the premium rates for
policyholders within participating communities.''.
SEC. 104. WRITE YOUR OWN PROGRAM REFORM.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall--
(1) issue a proposed rule that caps the reimbursement that
the Agency pays to Write Your Own Companies--
(A) at not more than 25 percent of the aggregate
premiums charged by the Write Your Own Company; and
(B) taking into account--
(i) the impact of the reimbursement rate on
the overall solvency of the National Flood
Insurance Program; and
(ii) reimbursement rates offered by other
Federal agencies for similar insurance
programs, including programs offered by the
Department of Health and Human Services and the
Department of Agriculture; and
(2) issue a proposed rule that caps the amount that Write
Your Own Company pays to an agent of the company as a
commission for flood insurance premiums sold by the agent.
(b) Final Rules.--Not later than 18 months after the date on which
the Administrator issues a proposed rule under subsection (a), the
Administrator shall issue a final rule for the proposed rule, which
shall apply to all flood insurance policies that are written or renewed
on or after the date that is 6 months after the date of publication of
the final rule.
(c) Reassessment of Caps.--The Administrator may reassess and
modify the caps provided in the final rules issued under subsection (b)
through notice and comment rulemaking procedures under section 553 of
title 5, United States Code.
TITLE II--RATE REPORTING AND POLICYHOLDER ASSISTANCE
SEC. 201. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) it is important to maximize participation in the
National Flood Insurance Program;
(2) in order to do so, Congress must ensure that flood
insurance is affordable for low-income homeowners, older
homeowners on fixed incomes, and working families; and
(3) it is also important that the National Flood Insurance
Program continues to align its premiums with actuarially sound
rates to provide transparency, increase public understanding of
the true costs of flood insurance and flood damage, and promote
the long-term financial solvency of the National Flood
Insurance Program.
SEC. 202. PREMIUM TRANSPARENCY.
(a) In General.--The Administrator shall issue to each policyholder
under the National Flood Insurance Program, in writing, an annual
premium pricing report with respect to the property of the
policyholder, which shall include--
(1) the full, risk-based premium for the property, as
identified under the Risk Rating 2.0 model or any subsequent
pricing model of the Agency;
(2) the applicable premium for the property, inclusive of
subsidies and caps as determined by section 1310A of the
National Flood Insurance Act of 1968, as added by section 203
of this Act; and
(3) the anticipated premium for subsequent years following
the report, based on the applicable pricing model of the Agency
and annual limitations on premium increases established under
section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)).
(b) Renter Transparency.--If a policyholder rents out a property
for which coverage is provided through the National Flood Insurance
Program to tenants, the policyholder shall provide a copy of the annual
premium pricing report for the property to the tenants with the lease
for the property.
SEC. 203. FLOOD PROTECTION AFFORDABILITY PROGRAM AND TRUST FUND.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), as amended by section 301 of this Act, is amended by
inserting after section 1310 (42 U.S.C. 4017) the following:
``SEC. 1310A. FLOOD PROTECTION AFFORDABILITY PROGRAM AND TRUST FUND.
``(a) Establishment of Program.--Not later than 1 year after the
date of enactment of this section, the Administrator shall establish a
program to ensure that policies under the national flood insurance
program are affordable by offering subsidized premiums using the
formula described in subsection (b).
``(b) Rate Affordability.--The program established under subsection
(a) shall ensure that policyholders under the national flood insurance
program shall not pay a premium that is, as a percentage of their
household income, higher than the percentage created by dividing their
annual household income by 41,000.
``(c) Subsidy.--If the premium for flood insurance coverage under
the national flood insurance program for a property owned by a
policyholder eligible for assistance under subsection (b) is greater
than the limit set by subsection (b), the Administrator shall subsidize
the premium using funds from the Flood Insurance Affordability Trust
Fund established under subsection (d) in the amount equal to the
difference between the stated premium and the maximum amount chargeable
under subsection (b).
``(d) Fund.--
``(1) In general.--There is established within the
Department of the Treasury a fund, which shall be--
``(A) known as the `Flood Insurance Affordability
Trust Fund' (in this section referred to as the
`Fund'); and
``(B) administered by the Administrator.
``(2) Shortfall.--If amounts in the Fund are insufficient
to cover subsidies required under subsection (b), the
Administrator is authorized to draw such sums as may be
necessary from the general fund of the Treasury to provide
those subsidies.
``(3) Report to congress.--The Administrator shall submit
to the Committee on Banking, Housing, and Urban Affairs of the
Senate, the Committee on Appropriations of the Senate, the
Committee on Financial Services of the House of
Representatives, and the Committee on Appropriations of the
House of Representatives an annual report detailing--
``(A) the amount paid out of the Fund during the
year preceding the date on which the report is
submitted;
``(B) the amount in the Fund as of the date of the
report;
``(C) the amount the Fund drew from the general
fund of the Treasury during the year preceding the date
on which the report is submitted;
``(D) the amount of appropriations that the
Administrator estimates the Fund will need for the
forthcoming year; and
``(E) other information as determined important by
the Administrator.
``(4) Authorization of appropriations.--There is authorized
to be appropriated into the Fund such sums as are necessary for
each fiscal year to provide the subsidies described in
subsection (c), as informed by the relevant report submitted
under paragraph (3).
``(e) Rule of Construction.--Nothing in this section shall be
construed to affect the applicability of the cap on the annual premium
increase under section 1308(e).''.
TITLE III--FEE REDUCTION AND CONSOLIDATION
SEC. 301. RESERVE FUND ASSESSMENT.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended--
(1) in section 1304(b) (42 U.S.C. 4011(b)), by striking the
flush matter following paragraph (4)(D);
(2) in section 1307(a)(1)(B)(iii) (42 U.S.C.
4014(a)(1)(B)(iii)), by striking ``which shall be recovered by
a fee charged to policyholders and such fee shall not be
subject to any agents' commissions, company expense allowances,
or State or local premium taxes'';
(3) in section 1308(m)(1) (42 U.S.C. 4015(m)(1)), in the
matter preceding subparagraph (A), by striking ``and the
surcharges required under section 1308A'';
(4) by striking section 1308A (42 U.S.C. 4015a); and
(5) by striking section 1310A (42 U.S.C. 4017A).
SEC. 302. FLOOD INSURANCE PROGRAM STABILITY FEE.
(a) Imposition and Collection.--The Administrator shall impose and
collect a singular annual surcharge, which shall be referred to as the
``Flood Insurance Program Stability Fee'', in the amount provided in
subsection (b), on all policies for flood insurance coverage under the
National Flood Insurance Program that are newly issued or renewed after
May 1, 2025.
(b) Amount.--The amount of the surcharge under subsection (a) shall
be--
(1) except as provided in paragraph (2), 20 percent of the
annual premium inclusive of any subsidy provided under section
1310A of the National Flood Insurance Act of 1968, as added by
section 203 of this Act; and
(2) 30 percent of the annual post-subsidy premium, in the
case of a policy for any property that is--
(A) a non-residential property other than a small
business concern; and
(B) a residential property that is not the primary
residence of an individual.
(c) Use of Funds.--Of amounts collected by the Administrator under
this section in a given fiscal year--
(1) not less than 50 percent shall be deposited in the
National Flood Insurance Fund established under section 1310 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4017); and
(2) not less than 30 percent shall be deposited in the
Flood Insurance Affordability Trust Fund established under
section 1310A of the National Flood Insurance Act of 1968, as
added by section 203 of this Act.
TITLE IV--RESILIENCE
SEC. 401. LEVEE PROJECT IDENTIFICATION AND DEVELOPMENT PROGRAM.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall establish a program to identify
and develop new levees and levee systems.
(b) Eligible Entities.--To carry out the program established under
subsection (a), the Administrator shall solicit applications from--
(1) States or political subdivisions of States;
(2) flood protection authorities;
(3) federally recognized Indian Tribes; and
(4) other public entities as determined by the
Administrator.
(c) Selection Criteria.--The Administrator shall consider
applications for assistance under the program established under
subsection (a) using the following criteria:
(1) An estimate of the valuation of property located behind
the proposed levee or system of levees.
(2) The history of severe weather and flooding events in
the community and any projected changes due to climate change.
(3) The number of people and percentage of the overall
population in the community that is participating in the
National Flood Insurance Program.
(4) The anticipated cost to construct and operate the levee
or system of levees.
(5) Other considerations, as determined by the
Administrator.
(d) Technical Assistance.--The Administrator shall provide
technical assistance upon request to applicants for the program
established under subsection (a), including by helping applicants to
access data regarding National Flood Insurance Program coverage in the
relevant area.
(e) Selected Projects.--Upon the selection of applicants for
participation in the program established under subsection (a), the
Administrator shall--
(1) provide technical assistance for applications submitted
to the Agency for funding, including assistance with
determining project scope, timeline, cost, and other
considerations as determined by the Administrator;
(2) prioritize for funding through the hazard mitigation
grant program under section 404 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c),
the Building Resilient Infrastructure and Communities program
authorized under section 203 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5133), and the
Flood Mitigation Assistance program authorized under section
1366 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c), applications from selected applicants for planning,
engineering, design, or construction work for the levee or
system of levees described in the application; and
(3) direct States and political subdivisions of States to
prioritize allocating funds from revolving loan funds
capitalized by the Safeguarding Tomorrow Revolving Loan Fund,
as established to carry out section 205 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5135), for projects for planning, engineering, design,
or construction work for levees or systems of levees selected
under this section.
(f) Consultation.--In administering the Program, the Administrator
shall consult with--
(1) the U.S. Army Corps of Engineers;
(2) emergency management agencies from States with a
selected project; and
(3) other stakeholders, as determined by the Administrator.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS FOR THE STORM ACT.
Section 205(n) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5135) is amended to read as
follows:
``(n) Authorization of Appropriations.--There are authorized to be
appropriated $200,000,000 for each of fiscal years 2025 through 2034 to
carry out this section.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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