H.R. 1267 — Introduced in House

I 113th CONGRESS 1st Session H. R. 1267 IN THE HOUSE OF REPRESENTATIVES March 19, 2013 Mr. Palazzo introduced the following bill; which was referred to the Committee on Financial Services A BILL To delay and phase-in increases in flood insurance premium rates under the national flood insurance program for certain properties, and for other purposes. 1. Short title This Act may be cited as the Flood Insurance Premium Relief Act of 2013. 2. Temporary delay of implementation and phase-in of premium rate increases for certain properties (a) Newly purchased properties (1) Delay of implementation For any property that is purchased after July 6, 2012, and before January 1, 2015, the risk premium rate charged for flood insurance under the national flood insurance program under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) shall— (A) during the 12-month period beginning upon such purchase, be the amount of such risk premium rate chargeable for such property immediately before such purchase; and (B) thereafter, be a rate that is not less than those estimated under section 1307(a)(1) of such Act (42 U.S.C. 4014(a)(1)), as required by paragraph (2) of that section, subject to paragraph (2) of this subsection. (2) Phase-in of increased rates Upon the expiration of any 12-month period referred to in paragraph (1)(A) with respect to any property, any increase in the risk premium rate charged for flood insurance for such property that is a result of paragraph (1)(B) shall be phased in over a 10-year period, at the rate of 10 percent for each year following the expiration of such 12-month period. (b) Properties with new flood insurance rate maps (1) Delay of implementation For any property that is located in an area that is participating in the national flood insurance program under the National Flood Insurance Act of 1968, that is covered by a flood insurance policy on the date of a covered flood insurance rate map update, and for which the risk premium rate charged for flood insurance for such property has increased, or will increase, as a result of such update, the risk premium rate charged for flood insurance under the national flood insurance program shall, during the 12-month period beginning upon the effective date of such covered flood insurance rate map update, be the amount of such risk premium rate chargeable for such property immediately before the effective date of such update. (2) Phase-in of increased rates Upon the expiration of any 12-month period referred to in paragraph (1) with respect to any property, any increase in the risk premium rate charged for flood insurance for such property that is a result of such covered flood insurance rate map update shall be phased in over a 10-year period, at the rate of 10 percent for each year following the expiration of such 12-month period. (3) Covered flood insurance rate map update For purposes of this subsection, the term covered flood insurance rate map update means any revision or updating of flood insurance rate maps under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.), or the Biggert-Waters Flood Insurance Reform Act of 2012 (subtitle A of title II of division F of Public Law 112–141), that takes effect after July 6, 2012, and before January 1, 2015. 3. Permanent phase-in of premium rate increases for certain properties (a) Properties purchased in 2015 or after Paragraph (2) of section 1307(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)(2)) is amended by striking after the date of enactment of the Biggert-Waters Flood Insurance Reform Act of 2012 and inserting the following: on or after January 1, 2015, except that any increase in the risk premium rate charged for flood insurance resulting from this paragraph for any such property shall be phased in over a 10-year period, at the rate of 10 percent for each year following such purchase. (b) Properties with new flood insurance rate maps effective in 2015 or after Subsection (h) of section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(h)) is amended— (1) in the first sentence, by inserting before the period at the end the following: and to section 2(b) of the Flood Insurance Premium Relief Act of 2013; and (2) in the second sentence— (A) by striking Any increase and inserting In the case of any such update that takes effect on or after January 1, 2015, any increase; and (B) by striking 5-year period, at the rate of 20 percent and inserting 10-year period, at the rate of 10 percent.