H.R. 4973 - Flood Insurance Reform and Modernization Act of 2006

COMMITTEE ACTION:   REPORTED BY A VOICE VOTE, on Monday June 26, 2006. 
FLOOR ACTION: ADOPTED BY A VOICE VOTE on Tuesday June 27, 2006.

MANAGERS: SESSIONS/MATSUI

109th Congress
2nd Session

H.RES. 891

[Report No. 109- 530]

 

 

H.R. 4973 - FLOOD INSURANCE REFORM AND MODERNIZATION ACT OF 2006

1. Structured rule.

2. Provides one hour of general debate equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services.

3. Waives all points of order against consideration of the bill.

4. Makes in order only those amendments printed in the Rules Committee report accompanying the resolution.

5. Provides that the amendments printed in the report may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for a division of the question in the House or in the Committee of the Whole.

6. Waives all points of order against the amendments printed in the report.

7. Provides one motion to recommit with or without instructions.

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RESOLUTION

Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 4973) to restore the financial solvency of the national flood insurance program, and for other purposes. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived. General debate shall be confined to the bill and shall not exceed one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services. After general debate the bill shall be considered for amendment under the five-minute rule. The bill shall be considered as read. Notwithstanding clause 11 of rule XVIII, no amendment to the bill shall be in order except those printed in the Committee on Rules accompanying this resolution. Each such amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole. All points of order against such amendments are waived. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

SUMMARY OF AMENDMENTS TO BE MADE IN ORDER
(summaries derived from information provided by sponsors)

 

 

1. Oxley (OH)/Baker (LA) #11:
Manager's Amendment.
  Contains a number of technical and conforming changes, including: clarification that the provisions governing the phasing-in of actuarial rates for nonresidential and non-primary residence properties will apply on the date on which the director of FEMA submits a required report to Congress, as opposed to the date of this legislation’s enactment; clarification that the $1 million cap on penalties for non-enforcement of mandatory flood insurance purchase requirements will not apply to a regulated institution or enterprise, for a calendar year, if in any 3 of the past 5 calendar years that institution or enterprise was assessed a penalty of $1 million; clarifications regarding the requirements for states to request FEMA participation in state-run disaster claims mediation programs and certain other provisions of the bill related to the claims mediation process; clarification of the timeline for FEMA’s inclusion of certain features on updated floodplain maps; and clarification of the FEMA Director’s authority regarding his ability to issue interim post-disaster flood elevation building requirements. (10 minutes)

2. Burton (IN)/Stark (CA) #1:
Codifies existing notification regulations and further requires written notification, by first-class mail, to each property owner affected by a proposed change in flood elevations, prior to the 90-day appeal period.  Notification would include an explanation of the appeal process and contact information for responsible officials. (10 minutes)

3. Garrett (NJ) #5:
Requires any purchaser of a pre-firm primary residential home to pay phased-in actuarial flood insurance prices using the same phase-in structure that non-residential and non-primary homes are currently subject to in the legislation, after the enactment of the bill. (10 minutes)

4. Taylor, Gene (MS) #3:
Instructs the Inspector General of DHS to conduct an investigation of the Hurricane Katrina damage claims adjusted by the insurance companies that contract with the National Flood Insurance Program under the “Write-Your-Own” program to determine whether, and to what extent, the companies improperly assigned damages to flooding covered by NFIP that should have been paid by the windstorm coverage provided by the insurance companies.  The Inspector General would be required to report the findings to Congress no later than six months after enactment. (10 minutes)

5. Jackson-Lee (TX) #9:
Adds a provision into the GAO study on the status of the national flood insurance program for certain pre-FIRM properties that seeks to identify any inconsistencies in eligibility standards for pre-FIRM coverage. (10 minutes)

6. Pickering (MS) #13:
Corrects an inequity in current law by exempting all purchases or transfers of property by any means, and not just purchases via a loan as under current law, from the 30-day waiting period for purposes of flood insurance coverage. (10 minutes)

7. Matsui (CA) #17:
Amends Section 16 of the bill to ensure that, when practical, FEMA utilizes emerging weather forecasting technologies in updating its flood maps. This will ensure that FEMA has the highest quality information when it works to determine the level of risk for vulnerable geographies. This language would not impose any additional financial mandates on the NFIP.  It would just make sure the program has the best information possible, while emphasizing the importance of this emerging technology. (10 minutes)

8. Johnson, Eddie Bernice (TX) #10:
Creates a program to educate the communities about the update to the flood insurance program rate map. (10 minutes)

9. Matsui (CA)/Hinojosa (TX)/Green, Gene (TX) #18:
Directs GAO to conduct a study on potential methods, practices and incentives that would increase the degree to which low-income property owners living in high-risk locations participate in the national flood insurance program.  This study should be reported to Congress no later than 1 year after enactment of this legislation. (10 minutes)

10. Ruppersberger (MD) #8:
Requires the FEMA Director to issue regulations and revise materials that are provided to policy holders using “plain language” and “easy to understand terms and concepts.” (10 minutes)

11. Jindal (LA) #23:
Clarifies that “demolish and rebuild” should be a mitigation option available under the regular Flood Mitigation Assistance (FMA) program. The "demolish and rebuild" option is specifically allowed under the Severe Repetitive Loss Program created by the 2004 reform act and FEMA has interpreted the difference to mean it cannot approve the measure under FMA. (10 minutes)

12. Davis, Jo Ann (VA) #6:
Directs FEMA to utilize “a methodologically valid approach for sampling files selected for operational reviews and quality assurance claims reinspections.” A 2005 GAO study highlighted FEMA’s oversight failures, stating that, “FEMA cannot ... determine the overall accuracy of claims settled for specific flood events or assess the overall performance of insurance companies and their adjusters in fulfilling their responsibilities for the NFIP” (GAO-06-183T National Flood Insurance Program). Improves the oversight and accountability of the National Flood Insurance Program (NFIP). (10 minutes)

13. Davis, Jo Ann (VA) #7:
Extends the proof of loss filing deadline to 180 days and would prohibit NFIP from denying claims solely for failing to meet the deadline and make this change retroactive to September 18, 2003. (10 minutes)

14. Rohrabacher (CA) #2:
Provides that, in a case in which a Federally funded flood control project causes an area to become at greater risk of flooding than it otherwise would have been, residents in that area shall be provided flood insurance using the price formula that would have applies had the offending flood control project not been built, or if no flood insurance would otherwise have been required, they shall be provided flood insurance at no cost.  The determination of this status would be made by the Director of the National Flood Insurance Program. (10 minutes)

15. Pearce (NM) #4:
Immediately ends all flood insurance subsidies on nonresidential, vacation and second homes. (10 minutes)

16. Miller, Candice (MI) #14:
Instructs the director of the National Flood Insurance Program, upon the completion of the IJC Study of the Upper Great Lakes, to request the Army Corps of Engineers to complete a new flood map for the region to help the NFIP develop 100 year and 500 year flood plains. Also prohibits flood evaluations in the upper Great Lakes to be increased until the aforementioned is completed. (10 minutes)

 

 

 

 

TEXT OF THE AMENDMENTS

 

1. Oxley (OH)/Baker (LA) #11:

2. Burton (IN)/Stark (CA) #1:

3. Garrett (NJ) #5:

4. Taylor, Gene (MS) #3:

5. Jackson-Lee (TX) #9:

6. Pickering (MS) #13:

7. Matsui (CA) #17:

8. Johnson, Eddie Bernice (TX) #10:

9. Matsui (CA)/Hinojosa (TX)/Green, Gene (TX) #18:

10. Ruppersberger (MD) #8:

11. Jindal (LA) #23:

12. Davis, Jo Ann (VA) #6:

13. Davis, Jo Ann (VA) #7:

14. Rohrabacher (CA) #2:

15. Pearce (NM) #4:

16. Miller, Candice (MI) #14: