,,ii #aahth ,,congress #b;d ,session ,s4 #eaii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #be1 #bjbd,mr4 ,casey introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to reauthorize the ,national ,flood ,insurance ,program1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,fair ,flood ,protection ,act of #bjbd4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,,title ,i--,reauthorization and stabilization,sec4 #aja4 ,reauthorization4,sec4 #ajb4 ,forbearance on ,national ,flood ,insurance ,program interest payments4,sec4 #ajc4 ,elimination of ,community ,rating ,system4,sec4 #ajd4 ,write ,your ,own ,program reform4,,title ,,ii--,rate reporting and policyholder assistance,sec4 #bja4 ,sense of ,congress4,sec4 #bjb4 ,premium transparency4,sec4 #bjc4 ,flood ,protection ,affordability ,program and ,trust ,fund4,,title ,,iii--,fee reduction and consolidation,sec4 #cja4 ,reserve ,fund assessment4,sec4 #cjb4 ,flood ,insurance ,program ,stability ,fee4,,title ,,iv--,resilience,sec4 #dja4 ,levee project identification and development program4,sec4 #djb4 ,authorization of appropriations for the ,,storm ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,agency4 7#b7 ,agency ,the term ,agency means the ,federal ,emergency ,management ,agency4 7#c7 ,community ,rating ,system ,the term ,community ,rating ,system means the community rating system program carried out under section #acae7;b7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djbb7;b774 7#d7 ,national ,flood ,insurance ,program ,the term ,national ,flood ,insurance ,program means the program established under the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djja et seq474 7#e7 ,small business concern ,the term small business concern has the meaning given the term in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 7#f7 ,write ,your ,own ,company ,the term ,write ,your ,own ,company means a private property insurance company that participates in the ,write ,your ,own ,program4 7#g7 ,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-- 7,a7 sell contracts for ,federal flood insurance under their own business lines of insurance2 and 7,b7 adjust and pay claims arising under the contracts described in subparagraph 7,a74 ,i ,reauthorization and stabilization #aja4 ,reauthorization 7a7 ,financing ,section #acji7;a7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djaf7;a77 is amended by striking ,september #cj1 #bjbc and inserting ,september #cj1 #bjcd4 7b7 ,program expiration ,section #acai of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djbf7 is amended by striking ,september #cj1 #bjbc and inserting ,september #cj1 #bjcd4 7c7 ,retroactive effective date ,if this ,act is enacted after ,september #cj1 #bjbd1 the amendments made by subsections 7a7 and 7b7 shall take effect as if enacted on ,september #cj1 #bjbd4 #ajb4 ,forbearance on ,national ,flood ,insurance ,program interest payments 7a7 ,in general ,during the #bj-year period beginning on the date of enactment of this ,act1 the ,secretary of the ,treasury may not charge the ,administrator interest on amounts borrowed by the ,administrator under section #acji7;a7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djaf7;a77 that were outstanding as of the date of enactment of this ,act1 including amounts borrowed after the date of enactment of this ,act that refinance debts that existed before the date of enactment of this ,act4 7b7 ,use of foregone interest payments ,there shall be deposited into the ,national ,flood ,mitigation ,fund established under section #acfg of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #dajd;d7 an amount equal to the interest that would have accrued on the borrowed amounts during the #bj-year period described in subsection 7a7 at the time at which those interest payments would have otherwise been paid1 which1 notwithstanding any provision of such section #acfg1 the ,administrator shall use to carry out the program established under section #acff of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #dajd;c74 7c7 ,no retroactive accrual ,after the #bj-year period described in subsection 7a71 the ,secretary of the ,treasury shall not require the ,administrator to repay any interest that1 but for that subsection1 would have accrued on the borrowed amounts described in that subsection during that #bj-year period4 #ajc4 ,elimination of ,community ,rating ,system 7a7 ,findings ,congress finds the following3 7#a7 ,the ,community ,rating ,system1 while well-intentioned1 has provided discounts to policyholders that are not actuarially justified4 7#b7 ,the discounts described in paragraph 7#a7 have furthered the financial insolvency of the ,national ,flood ,insurance ,program4 7#c7 ,with the transition by the ,agency towards individualized premiums rather than community-based premiums1 the ,community ,rating ,system should be phased out4 7b7 ,phase-,out ,section #acae7;b7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djbb7;b77 is amended by adding at the end the following3 7#d7 ,phase-out ,not earlier than #b years and not later than #d years after the date of enactment of this paragraph1 the ,administrator shall-- 7,a7 terminate the community rating system program established under paragraph 7#a72 and 7,b7 remove credits from the premium rates for policyholders within participating communities4 4 #ajd4 ,write ,your ,own ,program reform 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,administrator shall-- 7#a7 issue a proposed rule that caps the reimbursement that the ,agency pays to ,write ,your ,own ,companies-- 7,a7 at not more than #be percent of the aggregate premiums charged by the ,write ,your ,own ,company2 and 7,b7 taking into account-- 7i7 the impact of the reimbursement rate on the overall solvency of the ,national ,flood ,insurance ,program2 and 7ii7 reimbursement rates offered by other ,federal agencies for similar insurance programs1 including programs offered by the ,department of ,health and ,human ,services and the ,department of ,agriculture2 and 7#b7 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 agent4 7b7 ,final rules ,not later than #ah months after the date on which the ,administrator issues a proposed rule under subsection 7a71 the ,administrator shall issue a final rule for the proposed rule1 which shall apply to all flood insurance policies that are written or renewed on or after the date that is #f months after the date of publication of the final rule4 7c7 ,reassessment of caps ,the ,administrator may reassess and modify the caps provided in the final rules issued under subsection 7b7 through notice and comment rulemaking procedures under section #eec of title #e1 ,united ,states ,code4 ,,ii ,rate reporting and policyholder assistance #bja4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 it is important to maximize participation in the ,national ,flood ,insurance ,program2 7#b7 in order to do so1 ,congress must ensure that flood insurance is affordable for low-income homeowners1 older homeowners on fixed incomes1 and working families2 and 7#c7 it is also important that the ,national ,flood ,insurance ,program continues to align its premiums with actuarially sound rates to provide transparency1 increase public understanding of the true costs of flood insurance and flood damage1 and promote the long-term financial solvency of the ,national ,flood ,insurance ,program4 #bjb4 ,premium transparency 7a7 ,in general ,the ,administrator shall issue to each policyholder under the ,national ,flood ,insurance ,program1 in writing1 an annual premium pricing report with respect to the property of the policyholder1 which shall include-- 7#a7 the full1 risk-based premium for the property1 as identified under the ,risk ,rating #b4j model or any subsequent pricing model of the ,agency2 7#b7 the applicable premium for the property1 inclusive of subsidies and caps as determined by section #acaj;,a of the ,national ,flood ,insurance ,act of #aifh1 as added by section #bjc of this ,act2 and 7#c7 the anticipated premium for subsequent years following the report1 based on the applicable pricing model of the ,agency and annual limitations on premium increases established under section #acjh7;e7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djae7;e774 7b7 ,renter transparency ,if a policyholder rents out a property for which coverage is provided through the ,national ,flood ,insurance ,program to tenants1 the policyholder shall provide a copy of the annual premium pricing report for the property to the tenants with the lease for the property4 #bjc4 ,flood ,protection ,affordability ,program and ,trust ,fund ,chapter ,i of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djaa et seq471 as amended by section #cja of this ,act1 is amended by inserting after section #acaj 7#db ,u4,s4,c4 #djag7 the following3 #acaj;,a4 ,flood ,protection ,affordability ,program and ,trust ,fund 7a7 ,establishment of program ,not later than #a year after the date of enactment of this section1 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 7b74 7b7 ,rate affordability ,the program established under subsection 7a7 shall ensure that policyholders under the national flood insurance program shall not pay a premium that is1 as a percentage of their household income1 higher than the percentage created by dividing their annual household income by #da1jjj4 7c7 ,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 7b7 is greater than the limit set by subsection 7b71 the ,administrator shall subsidize the premium using funds from the ,flood ,insurance ,affordability ,trust ,fund established under subsection 7d7 in the amount equal to the difference between the stated premium and the maximum amount chargeable under subsection 7b74 7d7 ,fund 7#a7 ,in general ,there is established within the ,department of the ,treasury a fund1 which shall be-- 7,a7 known as the ,flood ,insurance ,affordability ,trust ,fund 7in this section referred to as the ,fund72 and 7,b7 administered by the ,administrator4 7#b7 ,shortfall ,if amounts in the ,fund are insufficient to cover subsidies required under subsection 7b71 the ,administrator is authorized to draw such sums as may be necessary from the general fund of the ,treasury to provide those subsidies4 7#c7 ,report to ,congress ,the ,administrator shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,committee on ,appropriations of the ,senate1 the ,committee on ,financial ,services of the ,house of ,representatives1 and the ,committee on ,appropriations of the ,house of ,representatives an annual report detailing-- 7,a7 the amount paid out of the ,fund during the year preceding the date on which the report is submitted2 7,b7 the amount in the ,fund as of the date of the report2 7,c7 the amount the ,fund drew from the general fund of the ,treasury during the year preceding the date on which the report is submitted2 7,d7 the amount of appropriations that the ,administrator estimates the ,fund will need for the forthcoming year2 and 7,e7 other information as determined important by the ,administrator4 7#d7 ,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 7c71 as informed by the relevant report submitted under paragraph 7#c74 7e7 ,rule of construction ,nothing in this section shall be construed to affect the applicability of the cap on the annual premium increase under section #acjh7;e74 4 ,,iii ,fee reduction and consolidation #cja4 ,reserve ,fund assessment ,chapter ,i of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djaa et seq47 is amended-- 7#a7 in section #acjd7;b7 7#db ,u4,s4,c4 #djaa7;b771 by striking the flush matter following paragraph 7#d77;,d72 7#b7 in section #acjg7;a77#a77;,b77iii7 7#db ,u4,s4,c4 #djad7;a77#a77;,b77iii771 by striking which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents' commissions1 company expense allowances1 or ,state or local premium taxes2 7#c7 in section #acjh7m77#a7 7#db ,u4,s4,c4 #djae7m77#a771 in the matter preceding subparagraph 7,a71 by striking and the surcharges required under section #acjh;,a2 7#d7 by striking section #acjh;,a 7#db ,u4,s4,c4 #djae;a72 and 7#e7 by striking section #acaj;,a 7#db ,u4,s4,c4 #djag;,a74 #cjb4 ,flood ,insurance ,program ,stability ,fee 7a7 ,imposition and collection ,the ,administrator shall impose and collect a singular annual surcharge1 which shall be referred to as the ,flood ,insurance ,program ,stability ,fee1 in the amount provided in subsection 7b71 on all policies for flood insurance coverage under the ,national ,flood ,insurance ,program that are newly issued or renewed after ,may #a1 #bjbe4 7b7 ,amount ,the amount of the surcharge under subsection 7a7 shall be-- 7#a7 except as provided in paragraph 7#b71 #bj percent of the annual premium inclusive of any subsidy provided under section #acaj;,a of the ,national ,flood ,insurance ,act of #aifh1 as added by section #bjc of this ,act2 and 7#b7 #cj percent of the annual post-subsidy premium1 in the case of a policy for any property that is-- 7,a7 a non-residential property other than a small business concern2 and 7,b7 a residential property that is not the primary residence of an individual4 7c7 ,use of funds ,of amounts collected by the ,administrator under this section in a given fiscal year-- 7#a7 not less than #ej percent shall be deposited in the ,national ,flood ,insurance ,fund established under section #acaj of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djag72 and 7#b7 not less than #cj percent shall be deposited in the ,flood ,insurance ,affordability ,trust ,fund established under section #acaj;,a of the ,national ,flood ,insurance ,act of #aifh1 as added by section #bjc of this ,act4 ,,iv ,resilience #dja4 ,levee project identification and development program 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,administrator shall establish a program to identify and develop new levees and levee systems4 7b7 ,eligible entities ,to carry out the program established under subsection 7a71 the ,administrator shall solicit applications from-- 7#a7 ,states or political subdivisions of ,states2 7#b7 flood protection authorities2 7#c7 federally recognized ,indian ,tribes2 and 7#d7 other public entities as determined by the ,administrator4 7c7 ,selection criteria ,the ,administrator shall consider applications for assistance under the program established under subsection 7a7 using the following criteria3 7#a7 ,an estimate of the valuation of property located behind the proposed levee or system of levees4 7#b7 ,the history of severe weather and flooding events in the community and any projected changes due to climate change4 7#c7 ,the number of people and percentage of the overall population in the community that is participating in the ,national ,flood ,insurance ,program4 7#d7 ,the anticipated cost to construct and operate the levee or system of levees4 7#e7 ,other considerations1 as determined by the ,administrator4 7d7 ,technical assistance ,the ,administrator shall provide technical assistance upon request to applicants for the program established under subsection 7a71 including by helping applicants to access data regarding ,national ,flood ,insurance ,program coverage in the relevant area4 7e7 ,selected projects ,upon the selection of applicants for participation in the program established under subsection 7a71 the ,administrator shall-- 7#a7 provide technical assistance for applications submitted to the ,agency for funding1 including assistance with determining project scope1 timeline1 cost1 and other considerations as determined by the ,administrator2 7#b7 prioritize for funding through the hazard mitigation grant program under section #djd of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagj;c71 the ,building ,resilient ,infrastructure and ,communities program authorized under section #bjc of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eacc71 and the ,flood ,mitigation ,assistance program authorized under section #acff of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #dajd;c71 applications from selected applicants for planning1 engineering1 design1 or construction work for the levee or system of levees described in the application2 and 7#c7 direct ,states and political subdivisions of ,states to prioritize allocating funds from revolving loan funds capitalized by the ,safeguarding ,tomorrow ,revolving ,loan ,fund1 as established to carry out section #bje of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eace71 for projects for planning1 engineering1 design1 or construction work for levees or systems of levees selected under this section4 7f7 ,consultation ,in administering the ,program1 the ,administrator shall consult with-- 7#a7 the ,u4,s4 ,army ,corps of ,engineers2 7#b7 emergency management agencies from ,states with a selected project2 and 7#c7 other stakeholders1 as determined by the ,administrator4 #djb4 ,authorization of appropriations for the ,,storm ,act ,section #bje7n7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eace7 is amended to read as follows3 7n7 ,authorization of appropriations ,there are authorized to be appropriated #bjj1jjj1jjj for each of fiscal years #bjbe through #bjcd to carry out this section4 4