In the nature of a substitute.

SA 4707. Mr. DODD (for himself and Mr. Shelby) submitted an amendment
intended to be proposed by him to the bill S. 2284, to amend the
National Flood Insurance Act of 1968, to restore the financial solvency
of the flood insurance fund, and for other purposes; which was ordered
to lie on the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Table of contents.

TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.

[[Page S3824]]

Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood
Insurance Program.
Sec. 114. Considerations in determining chargeable premium rates.
Sec. 115. Reserve fund.
Sec. 116. Repayment plan for borrowing authority.
Sec. 117. Payment of condominium claims.
Sec. 118. Technical Mapping Advisory Council.
Sec. 119. National Flood Mapping Program.
Sec. 120. Removal of limitation on State contributions for updating
flood maps.
Sec. 121. Coordination.
Sec. 122. Interagency coordination study.
Sec. 123. Nonmandatory participation.
Sec. 124. Notice of flood insurance availability under RESPA.
Sec. 125. Testing of new floodproofing technologies.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform
Act.
Sec. 128. Additional authority of FEMA to collect information on claims
payments.
Sec. 129. Expense reimbursements of insurance companies.
Sec. 130. Extension of pilot program for mitigation of severe
repetitive loss properties.
Sec. 131. Flood insurance advocate.
Sec. 132. Studies and Reports.

TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND
INSURANCE

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the Commission.
Sec. 206. Report.
Sec. 207. Powers of the Commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.

TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

SEC. 101. SHORT TITLE.

This title may be cited as the ``Flood Insurance Reform and
Modernization Act of 2008''.

SEC. 102. FINDINGS.

Congress finds that--
(1) the flood insurance claims resulting from the hurricane
season of 2005 will likely exceed all previous claims paid by
the National Flood Insurance Program;
(2) in order to pay the legitimate claims of policyholders
from the hurricane season of 2005, the Federal Emergency
Management Agency has borrowed over $20,000,000,000 from the
Treasury;
(3) the interest alone on this debt, is almost
$1,000,000,000 annually, and that the Federal Emergency
Management Agency has indicated that it will be unable to pay
back this debt;
(4) the flood insurance program must be strengthened to
ensure it can pay future claims;
(5) while flood insurance is mandatory in the 100-year
floodplain, substantial flooding occurs outside of existing
special flood hazard areas;
(6) recent events throughout the country involving areas
behind man-made structures, known as ``residual risk'' areas,
have produced catastrophic losses;
(7) although such man-made structures produce an added
element of safety and therefore lessen the probability that a
disaster will occur, they are nevertheless susceptible to
catastrophic loss, even though such areas at one time were
not included within the 100-year floodplain; and
(8) voluntary participation in the National Flood Insurance
Program has been minimal and many families residing outside
the 100-year floodplain remain unaware of the potential risk
to their lives and property.

SEC. 103. DEFINITIONS.

(a) In General.--In this title, the following definitions
shall apply:
(1) Director.--The term ``Director'' means the
Administrator of the Federal Emergency Management Agency.
(2) 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. 4011 et
seq.).
(3) 100-year floodplain.--The term ``100-year floodplain''
means that area which is subject to inundation from a flood
having a 1 percent chance of being equaled or exceeded in any
given year.
(4) 500-year floodplain.--The term ``500-year floodplain''
means that area which is subject to inundation from a flood
having a 0.2 percent chance of being equaled or exceeded in
any given year.
(5) Write your own.--The term ``Write Your Own'' means the
cooperative undertaking between the insurance industry and
the Flood Insurance Administration which allows participating
property and casualty insurance companies to write and
service standard flood insurance policies.
(b) Common Terminology.--Except as otherwise provided in
this title, any terms used in this title shall have the
meaning given to such terms under section 1370 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4121).

SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

Section 1319 of the National Flood Insurance Act of 1968
(42 U.S.C. 4026), is amended by striking ``2008'' and
inserting ``2013.''.

SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY
PROPERTIES.

Section 1305 of the National Flood Insurance Act of 1968
(42 U.S.C. 4012) is amended by adding at the end the
following:
``(d) Availability of Insurance for Multifamily
Properties.--
``(1) In general.--The Director shall make flood insurance
available to cover residential properties of more than 4
units. Notwithstanding any other provision of law, the
maximum coverage amount that the Director may make available
under this subsection to such residential properties shall be
equal to the coverage amount made available to commercial
properties.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to limit the ability of individuals
residing in residential properties of more than 4 units to
obtain insurance for the contents and personal articles
located in such residences.''.

SEC. 106. REFORM OF PREMIUM RATE STRUCTURE.

(a) To Exclude Certain Properties From Receiving Subsidized
Premium Rates.--
(1) In general.--Section 1307 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014) is amended--
(A) in subsection (a)--
(i) in paragraph (2), by striking ``; and'' and inserting a
semicolon;
(ii) in paragraph (3), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(4) the exclusion of prospective insureds from purchasing
flood insurance at rates less than those estimated under
paragraph (1), as required by paragraph (2), for certain
properties, including for--
``(A) any property which is not the primary residence of an
individual;
``(B) any severe repetitive loss property, as defined in
section 1361A(b);
``(C) any property that has incurred flood-related damage
in which the cumulative amounts of payments under this title
equaled or exceeded the fair market value of such property;
``(D) any business property; and
``(E) any property which on or after the date of enactment
of the Flood Insurance Reform and Modernization Act of 2008
has experienced or sustained--
``(i) substantial damage exceeding 50 percent of the fair
market value of such property; or
``(ii) substantial improvement exceeding 30 percent of the
fair market value of such property.''; and
(B) by adding at the end the following:
``(g) No Extension of Subsidy to New Policies or Lapsed
Policies.--The Director shall not provide flood insurance to
prospective insureds at rates less than those estimated under
subsection (a)(1), as required by paragraph (2) of that
subsection, for--
``(1) any property not insured by the flood insurance
program as of the date of enactment of the Flood Insurance
Reform and Modernization Act of 2008; and
``(2) any policy under the flood insurance program that has
lapsed in coverage, as a result of the deliberate choice of
the holder of such policy.''.
(2) Effective date.--The amendments made by paragraph (1)
shall become effective 90 days after the date of the
enactment of this title.
(b) Increase in Annual Limitation on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(e)) is amended--
(1) by striking ``under this title for any properties
within any single'' and inserting the following: ``under this
title for any properties--
``(1) within any single''; and
(2) by striking ``10 percent'' and inserting ``15
percent''; and
(3) by striking the period at the end and inserting the
following: ``; and
``(2) described in section 1307(a)(4) shall be increased by
25 percent each year, until the average risk premium rate for
such properties is equal to the average of the risk premium
rates for properties described under paragraph (1).''.

SEC. 107. MANDATORY COVERAGE AREAS.

(a) Special Flood Hazard Areas.--Not later than 90 days
after the date of enactment of this title, the Director shall
issue final regulations establishing a revised definition of
areas of special flood hazards for purposes of the National
Flood Insurance Program.
(b) Residual Risk Areas.--The regulations required by
subsection (a) shall--
(1) include any area previously identified by the Director
as an area having special flood hazards under section 102 of
the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a);
and
(2) require the expansion of areas of special flood hazards
to include areas of residual risk, including areas that are
located behind levees, dams, and other man-made structures.
(c) Mandatory Participation in National Flood Insurance
Program.--
(1) In general.--Any area described in subsection (b) shall
be subject to the mandatory purchase requirements of sections
102 and 202 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a, 4106).

[[Page S3825]]

(2) Limitation.--The mandatory purchase requirement under
paragraph (1) shall have no force or effect until the mapping
of all residual risk areas in the United States that the
Director determines essential in order to administer the
National Flood Insurance Program, as required under section
119, are in the maintenance phase.

SEC. 108. PREMIUM ADJUSTMENT.

Section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015) is amended by adding at the end the
following:
``(g) Premium Adjustment To Reflect Current Risk of
Flood.--Notwithstanding subsection (f), and upon completion
of the updating of any flood insurance rate map under this
Act, the Flood Disaster Protection Act of 1973, or the Flood
Insurance Reform and Modernization Act of 2008, any property
located in an area that is participating in the national
flood insurance program shall have the risk premium rate
charged for flood insurance on such property adjusted to
accurately reflect the current risk of flood to such
property, subject to any other provision of this Act. Any
increase in the risk premium rate charged for flood insurance
on any property that is covered by a flood insurance policy
on the date of completion of such updating or remapping that
is a result of such updating or remapping shall be phased in
over a 2-year period at the rate of 50 percent per year.''.

SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

Section 1305(c) of the National Flood Insurance Act of 1968
(42 U.S.C. 4012(c)) is amended--
(1) in paragraph (1), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) given satisfactory assurance that by December 31,
2008, lending institutions chartered by a State, and not
insured by the Federal Deposit Insurance Corporation, shall
be subject to regulations by that State that are consistent
with the requirements of section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a).''.

SEC. 110. ENFORCEMENT.

Section 102(f)(5) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(f)(5)) is amended--
(1) in the first sentence, by striking ``$350'' and
inserting ``$2,000''; and
(2) by striking the second sentence.

SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS.

(a) In General.--Section 102(d) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Regulated lending institutions.--
``(A) Federal entities responsible for lending
regulations.--Each Federal entity for lending regulation
(after consultation and coordination with the Federal
Financial Institutions Examination Council) shall, by
regulation, direct that any premiums and fees for flood
insurance under the National Flood Insurance Act of 1968, on
any property for which a loan has been made for acquisition
or construction purposes, shall be paid to the mortgage
lender, with the same frequency as payments on the loan are
made, for the duration of the loan. Upon receipt of any
premiums or fees, the lender shall deposit such premiums and
fees in an escrow account on behalf of the borrower. Upon
receipt of a notice from the Director or the provider of the
flood insurance that insurance premiums are due, the
remaining balance of an escrow account shall be paid to the
provider of the flood insurance.
``(B) State entities responsible for lending regulations.--
In order to continue to participate in the flood insurance
program, each State shall direct that its entity or agency
with primary responsibility for the supervision of lending
institutions in that State require that premiums and fees for
flood insurance under the National Flood Insurance Act of
1968, on any property for which a loan has been made for
acquisition or construction purposes shall be paid to the
mortgage lender, with the same frequency as payments on the
loan are made, for the duration of the loan. Upon receipt of
any premiums or fees, the lender shall deposit such premiums
and fees in an escrow account on behalf of the borrower. Upon
receipt of a notice from such State entity or agency, the
Director, or the provider of the flood insurance that
insurance premiums are due, the remaining balance of an
escrow account shall be paid to the provider of the flood
insurance.''; and
(2) by adding at the end the following:
``(6) Notice upon loan termination.--Upon final payment of
the mortgage, a regulated lending institution shall provide
notice to the policyholder that insurance coverage may cease
with such final payment. The regulated lending institution
shall also provide direction as to how the homeowner may
continue flood insurance coverage after the life of the
loan.''.
(b) Applicability.--The amendment made by subsection (a)(1)
shall apply to any mortgage outstanding or entered into on or
after the expiration of the 2-year period beginning on the
date of enactment of this title.

SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS.

(a) In General.--The Secretary of the Treasury relinquishes
the right to any repayment of amounts due from the Director
in connection with the exercise of the authority vested to
the Director to borrow such sums under section 1309 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4016), to the
extent such borrowed sums were used to fund the payment of
flood insurance claims under the National Flood Insurance
Program for any damage to or loss of property resulting from
the hurricanes of 2005.
(b) Certification.--The debt forgiveness described under
subsection (a) shall only take effect if the Director
certifies to the Secretary of Treasury that all authorized
resources or funds available to the Director to operate the
National Flood Insurance Program--
(1) have been otherwise obligated to pay claims under the
National Flood Insurance Program; and
(2) are not otherwise available to make payments to the
Secretary on any outstanding notes or obligations issued by
the Director and held by the Secretary.
(c) Decrease in Borrowing Authority.--The first sentence of
subsection (a) of section 1309 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``; except that, through September 30, 2008, clause
(2) of this sentence shall be applied by substituting
`$20,775,000,000' for `$1,500,000,000' ''.

SEC. 113. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL
FLOOD INSURANCE PROGRAM.

Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019) is amended--
(1) by striking ``The Director is'' and inserting the
following:
``(a) In General.--The Director is''; and
(2) by adding at the end the following:
``(b) Minimum Annual Deductible.--
``(1) Pre-firm properties.--For any structure which is
covered by flood insurance under this title, and on which
construction or substantial improvement occurred on or before
December 31, 1974, or before the effective date of an initial
flood insurance rate map published by the Director under
section 1360 for the area in which such structure is located,
the minimum annual deductible for damage to such structure
shall be--
``(A) $1,500, if the flood insurance coverage for such
structure covers loss of, or physical damage to, such
structure in an amount equal to or less than $100,000; and
``(B) $2,000, if the flood insurance coverage for such
structure covers loss of, or physical damage to, such
structure in an amount greater than $100,000.
``(2) Post-firm properties.--For any structure which is
covered by flood insurance under this title, and on which
construction or substantial improvement occurred after
December 31, 1974, or after the effective date of an initial
flood insurance rate map published by the Director under
section 1360 for the area in which such structure is located,
the minimum annual deductible for damage to such structure
shall be--
``(A) $750, if the flood insurance coverage for such
structure covers loss of, or physical damage to, such
structure in an amount equal to or less than $100,000; and
``(B) $1,000, if the flood insurance coverage for such
structure covers loss of, or physical damage to, such
structure in an amount greater than $100,000.''.

SEC. 114. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM
RATES.

Section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(b)) is amended--
(1) in subsection (a), by striking ``, after consultation
with'' and all that follows through ``by regulation'' and
inserting ``prescribe, after providing notice'';
(2) in subsection (b)--
(A) in paragraph (1), by striking the period at the end and
inserting a semicolon;
(B) in paragraph (2), by striking the comma at the end and
inserting a semicolon;
(C) in paragraph (3), by striking ``, and'' and inserting a
semicolon;
(D) in paragraph (4), by striking the period and inserting
``; and''; and
(E) by adding at the end the following:
``(5) adequate, on the basis of accepted actuarial
principles, to cover the average historical loss year
obligations incurred by the National Flood Insurance Fund.'';
and
(3) by adding at the end the following:
``(h) Rule of Construction.--For purposes of this section,
the calculation of an `average historical loss year'--
``(1) includes catastrophic loss years; and
``(2) shall be computed in accordance with generally
accepted actuarial principles.''.

SEC. 115. RESERVE FUND.

Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by inserting after section
1310 the following:

``SEC. 1310A. RESERVE FUND.

``(a) Establishment of Reserve Fund.--In carrying out the
flood insurance program authorized by this chapter, the
Director shall establish in the Treasury of the United States
a National Flood Insurance Reserve Fund (in this section
referred to as the `Reserve Fund') which shall--
``(1) be an account separate from any other accounts or
funds available to the Director; and
``(2) be available for meeting the expected future
obligations of the flood insurance program.
``(b) Reserve Ratio.--Subject to the phase-in requirements
under subsection (d), the Reserve Fund shall maintain a
balance equal to--
``(1) 1 percent of the sum of the total potential loss
exposure of all outstanding flood insurance policies in force
in the prior fiscal year; or

[[Page S3826]]

``(2) such higher percentage as the Director determines to
be appropriate, taking into consideration any circumstance
that may raise a significant risk of substantial future
losses to the Reserve Fund.
``(c) Maintenance of Reserve Ratio.--
``(1) In general.--The Director shall have the authority to
establish, increase, or decrease the amount of aggregate
annual insurance premiums to be collected for any fiscal year
necessary--
``(A) to maintain the reserve ratio required under
subsection (b); and
``(B) to achieve such reserve ratio, if the actual balance
of such reserve is below the amount required under subsection
(b).
``(2) Considerations.--In exercising the authority granted
under paragraph (1), the Director shall consider--
``(A) the expected operating expenses of the Reserve Fund;
``(B) the insurance loss expenditures under the flood
insurance program;
``(C) any investment income generated under the flood
insurance program; and
``(D) any other factor that the Director determines
appropriate.
``(3) Limitations.--In exercising the authority granted
under paragraph (1), the Director shall be subject to all
other provisions of this Act, including any provisions
relating to chargeable premium rates or annual increases of
such rates.
``(d) Phase-In Requirements.--The phase-in requirements
under this subsection are as follows:
``(1) In general.--Beginning in fiscal year 2008 and not
ending until the fiscal year in which the ratio required
under subsection (b) is achieved, in each such fiscal year
the Director shall place in the Reserve Fund an amount equal
to not less than 7.5 percent of the reserve ratio required
under subsection (b).
``(2) Amount satisfied.--As soon as the ratio required
under subsection (b) is achieved, and except as provided in
paragraph (3), the Director shall not be required to set
aside any amounts for the Reserve Fund.
``(3) Exception.--If at any time after the ratio required
under subsection (b) is achieved, the Reserve Fund falls
below the required ratio under subsection (b), the Director
shall place in the Reserve Fund for that fiscal year an
amount equal to not less than 7.5 percent of the reserve
ratio required under subsection (b).
``(e) Limitation on Reserve Ratio.--In any given fiscal
year, if the Director determines that the reserve ratio
required under subsection (b) cannot be achieved, the
Director shall submit a report to Congress that--
``(1) describes and details the specific concerns of the
Director regarding such consequences;
``(2) demonstrates how such consequences would harm the
long-term financial soundness of the flood insurance program;
and
``(3) indicates the maximum attainable reserve ratio for
that particular fiscal year.''.

SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY.

Section 1309 of the National Flood Insurance Act of 1968
(42 U.S.C. 4016) is amended by adding at the end the
following:
``(c) Any funds borrowed by the Director under the
authority established in subsection (a) shall include a
schedule for repayment of such amounts which shall be
transmitted to the--
``(1) Secretary of the Treasury;
``(2) Committee on Banking, Housing, and Urban Affairs of
the Senate; and
``(3) Committee on Financial Services of the House of
Representatives.
``(d) In addition to the requirement under subsection (c),
in connection with any funds borrowed by the Director under
the authority established in subsection (a), the Director,
beginning 6 months after the date on which such borrowed
funds are issued, and continuing every 6 months thereafter
until such borrowed funds are fully repaid, shall submit a
report on the progress of such repayment to the--
``(1) Secretary of the Treasury;
``(2) Committee on Banking, Housing, and Urban Affairs of
the Senate; and
``(3) Committee on Financial Services of the House of
Representatives.''.

SEC. 117. PAYMENT OF CONDOMINIUM CLAIMS.

Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019), as amended by section 113, is further
amended by adding at the end the following:
``(c) Payment of Claims to Condominium Owners.--The
Director may not deny payment for any damage to or loss of
property which is covered by flood insurance to condominium
owners who purchased such flood insurance separate and apart
from the flood insurance purchased by the condominium
association in which such owner is a member, based, solely or
in any part, on the flood insurance coverage of the
condominium association or others on the overall property
owned by the condominium association. Notwithstanding any
regulations, rules, or restrictions established by the
Director relating to appeals and filing deadlines, the
Director shall ensure that the requirements of this
subsection are met with respect to any claims for damages
resulting from flooding in 2005 and 2006.''.

SEC. 118. TECHNICAL MAPPING ADVISORY COUNCIL.

(a) Establishment.--There is established a council to be
known as the Technical Mapping Advisory Council (in this
section referred to as the ``Council'').
(b) Membership.--
(1) In general.--The Council shall consist of the Director,
or the designee thereof, and 12 additional members to be
appointed by the Director or the designee of the Director,
who shall be--
(A) the Under Secretary of Commerce for Oceans and
Atmosphere (or the designee thereof);
(B) a member of a recognized professional surveying
association or organization
(C) a member of a recognized professional mapping
association or organization;
(D) a member of a recognized professional engineering
association or organization;
(E) a member of a recognized professional association or
organization representing flood hazard determination firms;
(F) a representative of the United States Geological
Survey;
(G) a representative of a recognized professional
association or organization representing State geographic
information;
(H) a representative of State national flood insurance
coordination offices;
(I) a representative of the Corps of Engineers;
(J) the Secretary of the Interior (or the designee
thereof);
(K) the Secretary of Agriculture (or the designee thereof);
and
(L) a member of a recognized regional flood and storm water
management organization.
(2) Qualifications.--Members of the Council shall be
appointed based on their demonstrated knowledge and
competence regarding surveying, cartography, remote sensing,
geographic information systems, or the technical aspects of
preparing and using flood insurance rate maps.
(c) Duties.--The Council shall--
(1) recommend to the Director how to improve in a cost-
effective manner the--
(A) accuracy, general quality, ease of use, and
distribution and dissemination of flood insurance rate maps
and risk data; and
(B) performance metrics and milestones required to
effectively and efficiently map flood risk areas in the
United States;
(2) recommend to the Director mapping standards and
guidelines for--
(A) flood insurance rate maps; and
(B)  data accuracy, data quality, data currency, and data
eligibility;
(3) recommend to the Director how to maintain on an ongoing
basis flood insurance rate maps and flood risk
identification;
(4) recommend procedures for delegating mapping activities
to State and local mapping partners;
(5) recommend to the Director and other Federal agencies
participating in the Council--
(A) methods for improving interagency and intergovernmental
coordination on flood mapping and flood risk determination;
and
(B) a funding strategy to leverage and coordinate budgets
and expenditures across Federal agencies; and
(6) submit an annual report to the Director that contains--
(A) a description of the activities of the Council;
(B) an evaluation of the status and performance of flood
insurance rate maps and mapping activities to revise and
update flood insurance rate maps, as required under section
119; and
(C) a summary of recommendations made by the Council to the
Director.
(d) Future Conditions Risk Assessment and Modeling
Report.--
(1) In general.--The Council shall consult with scientists
and technical experts, other Federal agencies, States, and
local communities to--
(A) develop recommendations on how to--
(i) ensure that flood insurance rate maps incorporate the
best available climate science to assess flood risks; and
(ii) ensure that the Federal Emergency Management Agency
uses the best available methodology to consider the impact
of--

(I) the rise in the sea level; and
(II) future development on flood risk; and

(B) not later than 1 year after the date of enactment of
this title, prepare written recommendations in a future
conditions risk assessment and modeling report and to submit
such recommendations to the Director.
(2) Responsibility of the director.--The Director, as part
of the ongoing program to review and update National Flood
Insurance Program rate maps under section 119, shall
incorporate any future risk assessment submitted under
paragraph (1)(B) in any such revision or update.
(e) Chairperson.--The members of the Council shall elect 1
member to serve as the chairperson of the Council (in this
section referred to as the ``Chairperson'').
(f) Coordination.--To ensure that the Council's
recommendations are consistent, to the maximum extent
practicable, with national digital spatial data collection
and management standards, the Chairperson shall consult with
the Chairperson of the Federal Geographic Data Committee
(established pursuant to OMB Circular A-16).
(g) Compensation.--Members of the Council shall receive no
additional compensation by reason of their service on the
Council.
(h) Meetings and Actions.--
(1) In general.--The Council shall meet not less frequently
than twice each year at the request of the Chairperson or a
majority of its members, and may take action by a vote of the
majority of the members.

[[Page S3827]]

(2) Initial meeting.--The Director, or a person designated
by the Director, shall request and coordinate the initial
meeting of the Council.
(i) Officers.--The Chairperson may appoint officers to
assist in carrying out the duties of the Council under
subsection (c).
(j) Staff.--
(1) Staff of fema.--Upon the request of the Chairperson,
the Director may detail, on a nonreimbursable basis,
personnel of the Federal Emergency Management Agency to
assist the Council in carrying out its duties.
(2) Staff of other federal agencies.--Upon request of the
Chairperson, any other Federal agency that is a member of the
Council may detail, on a non-reimbursable basis, personnel to
assist the Council in carrying out its duties.
(k) Powers.--In carrying out this section, the Council may
hold hearings, receive evidence and assistance, provide
information, and conduct research, as it considers
appropriate.
(l) Report to Congress.--The Director, on an annual basis,
shall report to the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Financial Services of
the House of Representatives, and the Office of Management
and Budget on the--
(1) recommendations made by the Council; and
(2) actions taken by the Federal Emergency Management
Agency to address such recommendations to improve flood
insurance rate maps and flood risk data.

SEC. 119. NATIONAL FLOOD MAPPING PROGRAM.

(a) Reviewing, Updating, and Maintaining Maps.--The
Director, in coordination with the Technical Mapping Advisory
Council established under section 118, shall establish an
ongoing program under which the Director shall review,
update, and maintain National Flood Insurance Program rate
maps in accordance with this section.
(b) Mapping.--
(1) In general.--In carrying out the program established
under subsection (a), the Director shall--
(A) identify, review, update, maintain, and publish
National Flood Insurance Program rate maps with respect to--
(i) all areas located within the 100-year floodplain;
(ii) all areas located within the 500-year floodplain;
(iii) areas of residual risk that have not previously been
identified, including areas that are protected levees, dams,
and other man-made structures; and
(iv) areas that could be inundated as a result of the
failure of a levee, dam, or other man-made structure;
(B) establish or update flood-risk zone data in all such
areas, and make estimates with respect to the rates of
probable flood caused loss for the various flood risk zones
for each such area; and
(C) use, in identifying, reviewing, updating, maintaining,
or publishing any National Flood Insurance Program rate map
required under this section or under the National Flood
Insurance Act of 1968, the most accurate topography and
elevation data available.
(2) Mapping elements.--Each map updated under this section
shall:
(A) Ground elevation data.--Assess the accuracy of current
ground elevation data used for hydrologic and hydraulic
modeling of flooding sources and mapping of the flood hazard
and wherever necessary acquire new ground elevation data
utilizing the most up-to-date geospatial technologies in
accordance with the existing guidelines and specifications of
the Federal Emergency Management Agency.
(B) Data on a watershed basis.--Develop National Flood
Insurance Program flood data on a watershed basis--
(i) to provide the most technically effective and efficient
studies and hydrologic and hydraulic modeling; and
(ii) to eliminate, to the maximum extent possible,
discrepancies in base flood elevations between adjacent
political subdivisions.
(3) Other inclusions.--In updating maps under this section,
the Director shall include--
(A) any relevant information on coastal inundation from--
(i) an applicable inundation map of the Corps of Engineers;
and
(ii) data of the National Oceanic and Atmospheric
Administration relating to storm surge modeling;
(B) any relevant information of the United States
Geological Survey on stream flows, watershed characteristics,
and topography that is useful in the identification of flood
hazard areas, as determined by the Director;
(C) any relevant information on land subsidence, coastal
erosion areas, and other floor-related hazards;
(D) any relevant information or data of the National
Oceanic and Atmospheric Administration and the United States
Geological Survey relating to the best available climate
science and the potential for future inundation from sea
level rise, increased precipitation, and increased intensity
of hurricanes due to global warming; and
(E) any other relevant information as may be recommended by
the Technical Mapping Advisory Committee.
(c) Standards.--In updating and maintaining maps under this
section, the Director shall--
(1) establish standards to--
(A) ensure that maps are adequate for--
(i) flood risk determinations; and
(ii) use by State and local governments in managing
development to reduce the risk of flooding; and
(B) facilitate identification and use of consistent methods
of data collection and analysis by the Director, in
conjunction with State and local governments, in developing
maps for communities with similar flood risks, as determined
by the Director; and
(2) publish maps in a format that is--
(A) digital geospatial data compliant;
(B) compliant with the open publishing and data exchange
standards established by the Open Geospatial Consortium; and
(C) compliant with the North American Vertical Datum of
1998 for New Hydrologic and Hydraulic Engineering.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Director to carry out this section
$400,000,000 for each of fiscal years 2008 through 2013.

SEC. 120. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR
UPDATING FLOOD MAPS.

Section 1360(f)(2) of the National Flood Insurance Act of
1968 (42 U.S.C. 4101(f)(2)) is amended by striking ``, but
which may not exceed 50 percent of the cost of carrying out
the requested revision or update''.

SEC. 121. COORDINATION.

(a) Interagency Budget Crosscut Report.--
(1) In general.--The Secretary of Homeland Security, the
Director, the Director of the Office of Management and
Budget, and the heads of each Federal department or agency
carrying out activities under sections 118 and 119 shall work
together to ensure that flood risk determination data and
geospatial data are shared among Federal agencies in order to
coordinate the efforts of the Nation to reduce its
vulnerability to flooding hazards.
(2) Report.--Not later than 30 days after the submission of
the budget of the United States Government by the President
to Congress, the Director of the Office of Management and
Budget, in coordination with the Federal Emergency Management
Agency, the United States Geological Survey, the National
Oceanic and Atmospheric Administration, the Corps of
Engineers, and other Federal agencies, as appropriate, shall
submit to the appropriate authorizing and appropriating
committees of the Senate and the House of Representatives a
financial report, certified by the Secretary or head of each
such agency, an interagency budget crosscut report that
displays the budget proposed for each of the Federal agencies
working on flood risk determination data and digital
elevation models, including any planned interagency or
intraagency transfers.
(b) Duties of the Director.--In carrying out sections 118
and 119, the Director shall--
(1) participate, pursuant to section 216 of Public Law 107-
347 (116 Stat. 2945), in the establishment of such standards
and common protocols as are necessary to assure the
interoperability of geospatial data for all users of such
information;
(2) coordinate with, seek assistance and cooperation of,
and provide liaison to the Federal Geographic Data Committee
pursuant to Office of Management and Budget Circular A-16 and
Executive Order 12906 for the implementation of and
compliance with such standards;
(3) integrate with, leverage, and coordinate funding of, to
the maximum extent practicable, the current flood mapping
activities of each unit of State and local government;
(4) integrate with, leverage, and coordinate, to the
maximum extent practicable, the current geospatial activities
of other Federal agencies and units of State and local
government; and
(5) develop a funding strategy to leverage and coordinate
budgets and expenditures, and to establish joint funding
mechanisms with other Federal agencies and units of State and
local government to share the collection and utilization of
geospatial data among all governmental users.

SEC. 122. INTERAGENCY COORDINATION STUDY.

(a) In General.--The Director shall enter into a contract
with the National Academy of Public Administration to conduct
a study on how the Federal Emergency Management Agency--
(1) should improve interagency and intergovernmental
coordination on flood mapping, including a funding strategy
to leverage and coordinate budgets and expenditures; and
(2) can establish joint funding mechanisms with other
Federal agencies and units of State and local government to
share the collection and utilization of data among all
governmental users.
(b) Timing.--Not later than 180 days after the date of
enactment of this title, the National Academy of Public
Administration shall report the findings of the study
required under subsection (a) to the--
(1) Committee on Banking, Housing, and Urban Affairs of the
Senate;
(2) Committee on Financial Services of the House of
Representatives;
(3) Committee on Appropriations of the Senate; and
(4) Committee on Appropriations of the House of
Representatives.

SEC. 123. NONMANDATORY PARTICIPATION.

(a) Nonmandatory Participation in National Flood Insurance
Program for 500-Year Floodplain.--Any area located within the
500-year floodplain shall not be subject to the mandatory
purchase requirements of sections 102 or 202 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).

[[Page S3828]]

(b) Notice.--
(1) By director.--In carrying out the National Flood
Insurance Program, the Director shall provide notice to any
community located in an area within the 500-year floodplain.
(2) Timing of notice.--The notice required under paragraph
(1) shall be made not later than 6 months after the date of
completion of the initial mapping of the 500-year floodplain,
as required under section 118.
(3) Lender required notice.--
(A) Regulated lending institutions.--Each Federal or State
entity for lending regulation (after consultation and
coordination with the Federal Financial Institutions
Examination Council) shall, by regulation, require regulated
lending institutions, as a condition of making, increasing,
extending, or renewing any loan secured by property located
in an area within the 500-year floodplain, to notify the
purchaser or lessee (or obtain satisfactory assurances that
the seller or lessor has notified the purchaser or lessee)
and the servicer of the loan that such property is located in
an area within the 500-year floodplain, in a manner that is
consistent with and substantially identical to the notice
required under section 1364(a)(1) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104a(a)(1)).
(B) Federal or state agency lenders.--Each Federal or State
agency lender shall, by regulation, require notification in
the same manner as provided under subparagraph (A) with
respect to any loan that is made by a Federal or State agency
lender and secured by property located in an area within the
500-year floodplain.
(C) Penalty for noncompliance.--Any regulated lending
institution or Federal or State agency lender that fails to
comply with the notice requirements established by this
paragraph shall be subject to the penalties prescribed under
section 102(f)(5) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(f)(5)).

SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

Section 5(b) of the Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2604(b)) is amended--
(1) in paragraph (4), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (5), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(6) an explanation of flood insurance and the
availability of flood insurance under the National Flood
Insurance Program, whether or not the real estate is located
in an area having special flood hazards.''.

SEC. 125. TESTING OF NEW FLOODPROOFING TECHNOLOGIES.

(a) Permissible Testing.--A temporary residential structure
built for the purpose of testing a new flood proofing
technology, as described in subsection (b), in any State or
community that receives mitigation assistance under section
1366 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c) may not be construed to be in violation of any flood
risk mitigation plan developed by that State or community and
approved by the Director of the Federal Emergency Management
Agency.
(b) Conditions on Testing.--Testing permitted under
subsection (a) shall--
(1) be performed on an uninhabited residential structure;
(2) require dismantling of the structure at the conclusion
of such testing; and
(3) require that all costs associated with such testing and
dismantling be covered by the individual or entity conducting
the testing, or on whose behalf the testing is conducted.
(c) Rule of Construction.--Nothing in this section shall be
construed to alter, limit, or extend the availability of
flood insurance to any structure that may employ, utilize, or
apply any technology tested under subsection (b).

SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
PROGRAMS.

Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by inserting after section
1313 the following:

``SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
PROGRAMS.

``(a) Requirement to Participate.--In the case of the
occurrence of a major disaster, as defined in section 102 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122) that may have resulted in
flood damage under the flood insurance program established
under this chapter and other personal lines residential
property insurance coverage offered by a State regulated
insurer, upon request made by the insurance commissioner of a
State (or such other official responsible for regulating the
business of insurance in the State) for the participation of
representatives of the Director in a program sponsored by
such State for nonbinding mediation of insurance claims
resulting from a major disaster, the Director shall cause
representatives of the flood insurance program to participate
in such a State program where claims under the flood
insurance program are involved to expedite settlement of
flood damage claims resulting from such disaster.
``(b) Extent of Participation.--In satisfying the
requirements of subsection (a), the Director shall require
that each representative of the Director--
``(1) be certified for purposes of the flood insurance
program to settle claims against such program resulting from
such disaster in amounts up to the limits of policies under
such program;
``(2) attend State-sponsored mediation meetings regarding
flood insurance claims resulting from such disaster at such
times and places as may be arranged by the State;
``(3) participate in good faith negotiations toward the
settlement of such claims with policyholders of coverage made
available under the flood insurance program; and
``(4) finalize the settlement of such claims on behalf of
the flood insurance program with such policyholders.
``(c) Coordination.--Representatives of the Director shall
at all times coordinate their activities with insurance
officials of the State and representatives of insurers for
the purposes of consolidating and expediting settlement of
claims under the national flood insurance program resulting
from such disaster.
``(d) Qualifications of Mediators.--Each State mediator
participating in State-sponsored mediation under this section
shall be--
``(1)(A) a member in good standing of the State bar in the
State in which the mediation is to occur with at least 2
years of practical experience; and
``(B) an active member of such bar for at least 1 year
prior to the year in which such mediator's participation is
sought; or
``(2) a retired trial judge from any United States
jurisdiction who was a member in good standing of the bar in
the State in which the judge presided for at least 5 years
prior to the year in which such mediator's participation is
sought.
``(e) Mediation Proceedings and Documents Privileged.--As a
condition of participation, all statements made and documents
produced pursuant to State-sponsored mediation involving
representatives of the Director shall be deemed privileged
and confidential settlement negotiations made in anticipation
of litigation.
``(f) Liability, Rights, or Obligations Not Affected.--
Participation in State-sponsored mediation, as described in
this section does not--
``(1) affect or expand the liability of any party in
contract or in tort; or
``(2) affect the rights or obligations of the parties, as
established--
``(A) in any regulation issued by the Director, including
any regulation relating to a standard flood insurance policy;
``(B) under this Act; and
``(C) under any other provision of Federal law.
``(g) Exclusive Federal Jurisdiction.--Participation in
State-sponsored mediation shall not alter, change, or modify
the original exclusive jurisdiction of United States courts,
as set forth in this Act.
``(h) Cost Limitation.--Nothing in this section shall be
construed to require the Director or a representative of the
Director to pay additional mediation fees relating to flood
insurance claims associated with a State-sponsored mediation
program in which such representative of the Director
participates.
``(i) Exception.--In the case of the occurrence of a major
disaster that results in flood damage claims under the
national flood insurance program and that does not result in
any loss covered by a personal lines residential property
insurance policy--
``(1) this section shall not apply; and
``(2) the provisions of the standard flood insurance policy
under the national flood insurance program and the appeals
process established under section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42
U.S.C. 4011 note) and the regulations issued pursuant to such
section shall apply exclusively.
``(j) Representatives of the Director.--For purposes of
this section, the term `representatives of the Director'
means representatives of the national flood insurance program
who participate in the appeals process established under
section 205 of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 (42 U.S.C. 4011 note).''.

SEC. 127. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004
REFORM ACT.

(a) Minimum Training and Education Requirements.--The
Director shall continue to work with the insurance industry,
State insurance regulators, and other interested parties to
implement the minimum training and education standards for
all insurance agents who sell flood insurance policies, as
such standards were determined by the Director in the notice
published in the Federal Register on September 1, 2005 (70
Fed. Reg. 52117) pursuant to section 207 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42
U.S.C. 4011 note).
(b) Report on the Overall Implementation of the Reform Act
of 2004.--Not later than 3 months after the date of the
enactment of this title, the Director shall submit a report
to Congress--
(1) describing the implementation of each provision of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of
2004 (Public Law 108-264; 118 Stat. 712);
(2) identifying each regulation, order, notice, and other
material issued by the Director in implementing each
provision of that Act;
(3) explaining any statutory or implied deadlines that have
not been met; and
(4) providing an estimate of when the requirements of such
missed deadlines will be fulfilled.

SEC. 128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION
ON CLAIMS PAYMENTS.

(a) In General.--The Director shall collect, from property
and casualty insurance

[[Page S3829]]

companies that are authorized by the Director to participate
in the Write Your Own program any information and data needed
to determine the accuracy of the resolution of flood claims
filed on any property insured with a standard flood insurance
policy obtained under the program that was subject to a
flood.
(b) Type of Information To Be Collected.--The information
and data to be collected under subsection (a) may include--
(1) any adjuster estimates made as a result of flood
damage, and if the insurance company also insures the
property for wind damage--
(A) any adjuster estimates for both wind and flood damage;
(B) the amount paid to the property owner for wind and
flood claims;
(C) the total amount paid to the policyholder for damages
as a result of the event that caused the flooding and other
losses;
(2) any amounts paid to the policyholder by the insurance
company for damages to the insured property other than flood
damages; and
(3) the total amount paid to the policyholder by the
insurance company for all damages incurred to the insured
property as a result of the flood.

SEC. 129. EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

(a) Submission of Biennial Reports.--
(1) To the director.--Not later than 20 days after the date
of enactment of this title, each property and casualty
insurance company that is authorized by the Director to
participate in the Write Your Own program shall submit to the
Director any biennial report prepared in the prior 5 years by
such company.
(2) To gao.--Not later than 10 days after the submission of
the biennial reports under paragraph (1), the Director shall
submit all such reports to the Comptroller General of the
United States.
(3) Notice to congress of failure to comply.--The Director
shall notify and report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on any
property and casualty insurance company participating in the
Write Your Own program that failed to submit its biennial
reports as required under paragraph (1).
(b) FEMA Rulemaking on Expenses of WYO Program.--Not later
than 180 days after the date of enactment of this title, the
Director shall conduct a rulemaking proceeding to devise a
data collection methodology to allow the Federal Emergency
Management Agency to collect consistent information on the
expenses (including the operating and administrative expenses
for adjustment of claims) of property and casualty insurance
companies participating in the Write Your Own program for
selling, writing, and servicing, standard flood insurance
policies.
(c) Submission of Expense Reports.--Not later than 60 days
after the effective date of the final rule established
pursuant to subsection (b), each property and casualty
insurance company participating in the Write Your Own program
shall submit a report to the Director that details for the
prior 5 years the expense levels of each such company for
selling, writing, and servicing standard flood insurance
policies based on the methodologies established under
subsection (b).
(d) FEMA Rulemaking on Reimbursement of Expenses Under the
WYO Program.--Not later than 15 months after the date of
enactment of this title, the Director shall conduct a
rulemaking proceeding to formulate revised expense
reimbursements to property and casualty insurance companies
participating in the Write Your Own program for their
expenses (including their operating and administrative
expenses for adjustment of claims) in selling, writing, and
servicing standard flood insurance policies, including how
such companies shall be reimbursed in both catastrophic and
non-catastrophic years. Such reimbursements shall be
structured to ensure reimbursements track the actual
expenses, including standard business costs and operating
expenses, of such companies as close as practicably possible.
(e) Report of the Director.--Not later than 60 days after
the effective date of any final rule established pursuant to
subsection (b) or subsection (d), the Director shall submit
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 containing--
(1) the specific rationale and purposes of such rule;
(2) the reasons for the adoption of the policies contained
in such rule; and
(3) the degree to which such rule accurately represents the
true operating costs and expenses of property and casualty
insurance companies participating in the Write Your Own
program.
(f) GAO Study and Report on Expenses of WYO Program.--
(1) Study.--Not later than 180 days after the effective
date of the final rule established pursuant to subsection
(d), the Comptroller General of the United States shall--
(A) conduct a study on the efficacy, adequacy, and
sufficiency of the final rules established pursuant to
subsections (b) and (d); and
(B) report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives on the findings of the study
conducted under subparagraph (A).
(2) GAO authority.--In conducting the study and report
required under paragraph (1), the Comptroller General--
(A) may use any previous findings, studies, or reports that
the Comptroller General previously completed on the Write
Your Own program;
(B) shall determine if--
(i) the final rules established pursuant to subsections (b)
and (d) allow the Federal Emergency Management Agency to
access adequate information regarding the actual expenses of
property and casualty insurance companies participating in
the Write Your Own program; and
(ii) the actual reimbursements paid out under the final
rule established in subsection (d) accurately reflect the
expenses reported by property and casualty insurance
companies participating in the Write Your Own program,
including the standard business costs and operating expenses
of such companies; and
(C) shall analyze the effect of such rules on the level of
participation of property and casualty insurers in the Write
Your Own program.

SEC. 130. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE
REPETITIVE LOSS PROPERTIES.

(a) In General.--Section 1361A of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102a) is amended--
(1) in subsection (k)(1)--
(A) in the first sentence, by striking ``in each of fiscal
years 2005, 2006, 2007, 2008, and 2009'' and inserting ``in
each fiscal year through fiscal year 2013''; and
(B) by adding at the end the following new sentence: ``For
fiscal years 2008 through the 2013, the total amount that the
Director may use to provide assistance under this section
shall not exceed $240,000,000.''; and
(2) by striking subsection (l).
(b) Report to Congress on Implementation Status.--Not later
than 6 months after the date of enactment of this title, the
Director shall report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on the
status of the implementation of the pilot program for severe
repetitive loss properties authorized under section 1361A of
the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
(c) Rulemaking.--No later than 90 days after the date of
enactment of this title, the Director shall issue final rules
to carry out the severe repetitive loss pilot program
authorized under section 1361A of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102a).

SEC. 131. FLOOD INSURANCE ADVOCATE.

Chapter II of the National Flood Insurance Act of 1968 is
amended by inserting after section 1330 (42 U.S.C. 4041) the
following new section:

``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

``(a) Establishment of Position.--
``(1) In general.--There shall be in the Federal Emergency
Management Agency an Office of the Flood Insurance Advocate
which shall be headed by the National Flood Insurance
Advocate. The National Flood Insurance Advocate shall report
directly to the Director and shall, to the extent amounts are
provided pursuant to subsection (f), be compensated at the
same rate as the highest rate of basic pay established for
the Senior Executive Service under section 5382 of title 5,
United States Code, or, if the Director so determines, at a
rate fixed under section 9503 of such title.
``(2) Appointment.--The National Flood Insurance Advocate
shall be appointed by the Director and the flood insurance
advisory committee established pursuant to section 1318 and
without regard to the provisions of title 5, United States
Code, relating to appointments in the competitive service or
the Senior Executive Service.
``(3) Qualifications.--An individual appointed under
paragraph (2) shall have--
``(A) a background in customer service as well as
insurance; and
``(B) experience in representing individual insureds.
``(4) Restriction on employment.--An individual may be
appointed as the National Flood Insurance Advocate only if
such individual was not an officer or employee of the Federal
Emergency Management Agency with duties relating to the
national flood insurance program during the 2-year period
ending with such appointment and such individual agrees not
to accept any employment with the Federal Emergency
Management Agency for at least 2 years after ceasing to be
the National Flood Insurance Advocate. Service as an employee
of the National Flood Insurance Advocate shall not be taken
into account in applying this paragraph.
``(5) Staff.--To the extent amounts are provided pursuant
to subsection (f), the National Flood Insurance Advocate may
employ such personnel as may be necessary to carry out the
duties of the Office.
``(b) Functions of Office.--
``(1) In general.--It shall be the function of the Office
of the Flood Insurance Advocate to--
``(A) assist insureds under the national flood insurance
program in resolving problems with the Federal Emergency
Management Agency relating to such program;
``(B) identify areas in which such insureds have problems
in dealings with the Federal Emergency Management Agency
relating to such program;

[[Page S3830]]

``(C) propose changes in the administrative practices of
the Federal Emergency Management Agency to mitigate problems
identified under subparagraph (B); and
``(D) identify potential legislative, administrative, or
regulatory changes which may be appropriate to mitigate such
problems.
``(2) Annual reports.--
``(A) Activities.--Not later than December 31 of each
calendar year, the National Flood Insurance Advocate shall
report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives on the activities of the
Office of the Flood Insurance Advocate during the fiscal year
ending during such calendar year. Any such report shall
contain a full and substantive analysis of such activities,
in addition to statistical information, and shall--
``(i) identify the initiatives the Office of the Flood
Insurance Advocate has taken on improving services for
insureds under the national flood insurance program and
responsiveness of the Federal Emergency Management Agency
with respect to such initiatives;
``(ii) describe the nature of recommendations made to the
Director under subsection (e);
``(iii) contain a summary of the most serious problems
encountered by such insureds, including a description of the
nature of such problems;
``(iv) contain an inventory of any items described in
clauses (i), (ii), and (iii) for which action has been taken
and the result of such action;
``(v) contain an inventory of any items described in
clauses (i), (ii), and (iii) for which action remains to be
completed and the period during which each item has remained
on such inventory;
``(vi) contain an inventory of any items described in
clauses (i), (ii), and (iii) for which no action has been
taken, the period during which each item has remained on such
inventory and the reasons for the inaction;
``(vii) identify any Flood Insurance Assistance
Recommendation which was not responded to by the Director in
a timely manner or was not followed, as specified under
subsection (e);
``(viii) contain recommendations for such administrative
and legislative action as may be appropriate to resolve
problems encountered by such insureds;
``(ix) identify areas of the law or regulations relating to
the national flood insurance program that impose significant
compliance burdens on such insureds or the Federal Emergency
Management Agency, including specific recommendations for
remedying these problems;
``(x) identify the most litigated issues for each category
of such insureds, including recommendations for mitigating
such disputes; and
``(xi) include such other information as the National Flood
Insurance Advocate may deem advisable.
``(B) Direct submission of report.--Each report required
under this paragraph shall be provided directly to the
committees identified in subparagraph (A) without any prior
review or comment from the Director, the Secretary of
Homeland Security, or any other officer or employee of the
Federal Emergency Management Agency or the Department of
Homeland Security, or the Office of Management and Budget.
``(3) Other responsibilities.--The National Flood Insurance
Advocate shall--
``(A) monitor the coverage and geographic allocation of
regional offices of flood insurance advocates;
``(B) develop guidance to be distributed to all Federal
Emergency Management Agency officers and employees having
duties with respect to the national flood insurance program,
outlining the criteria for referral of inquiries by insureds
under such program to regional offices of flood insurance
advocates;
``(C) ensure that the local telephone number for each
regional office of the flood insurance advocate is published
and available to such insureds served by the office; and
``(D) establish temporary State or local offices where
necessary to meet the needs of qualified insureds following a
flood event.
``(4) Personnel actions.--
``(A) In general.--The National Flood Insurance Advocate
shall have the responsibility and authority to--
``(i) appoint regional flood insurance advocates in a
manner that will provide appropriate coverage based upon
regional flood insurance program participation; and
``(ii) hire, evaluate, and take personnel actions
(including dismissal) with respect to any employee of any
regional office of a flood insurance advocate described in
clause (i).
``(B) Consultation.--The National Flood Insurance Advocate
may consult with the appropriate supervisory personnel of the
Federal Emergency Management Agency in carrying out the
National Flood Insurance Advocate's responsibilities under
this paragraph.
``(c) Responsibilities of Director.--The Director shall
establish procedures requiring a formal response consistent
with the requirements of subsection (e)(3) to all
recommendations submitted to the Director by the National
Flood Insurance Advocate.
``(d) Operation of Regional Offices.--
``(1) In general.--Each regional flood insurance advocate
appointed pursuant to subsection (b)--
``(A) shall report to the National Flood Insurance Advocate
or delegate thereof;
``(B) may consult with the appropriate supervisory
personnel of the Federal Emergency Management Agency
regarding the daily operation of the regional office of the
flood insurance advocate;
``(C) shall, at the initial meeting with any insured under
the national flood insurance program seeking the assistance
of a regional office of the flood insurance advocate, notify
such insured that the flood insurance advocate offices
operate independently of any other Federal Emergency
Management Agency office and report directly to Congress
through the National Flood Insurance Advocate; and
``(D) may, at the flood insurance advocate's discretion,
not disclose to the Director contact with, or information
provided by, such insured.
``(2) Maintenance of independent communications.--Each
regional office of the flood insurance advocate shall
maintain a separate phone, facsimile, and other electronic
communication access.
``(e) Flood Insurance Assistance Recommendations.--
``(1) Authority to issue.--Upon application filed by a
qualified insured with the Office of the Flood Insurance
Advocate (in such form, manner, and at such time as the
Director shall by regulation prescribe), the National Flood
Insurance Advocate may issue a Flood Insurance Assistance
Recommendation, if the Advocate finds that the qualified
insured is suffering a significant hardship, such as a
significant delay in resolving claims where the insured is
incurring significant costs as a result of such delay, or
where the insured is at risk of adverse action, including the
loss of property, as a result of the manner in which the
flood insurance laws are being administered by the Director.
``(2) Terms of a flood insurance assistance
recommendation.--The terms of a Flood Insurance Assistance
Recommendation may recommend to the Director that the
Director, within a specified time period, cease any action,
take any action as permitted by law, or refrain from taking
any action, including the payment of claims, with respect to
the qualified insured under any other provision of law which
is specifically described by the National Flood Insurance
Advocate in such recommendation.
``(3) Director response.--Not later than 15 days after the
receipt of any Flood Insurance Assistance Recommendation
under this subsection, the Director shall respond in writing
as to--
``(A) whether such recommendation was followed;
``(B) why such recommendation was or was not followed; and
``(C) what, if any, additional actions were taken by the
Director to prevent the hardship indicated in such
recommendation.
``(4) Definitions.--For purposes of this subsection:
``(A) National flood insurance advocate.--The term
`National Flood Insurance Advocate' includes any designee of
the National Flood Insurance Advocate.
``(B) Qualified insured.--The term `qualified insured'
means an insured under coverage provided under the national
flood insurance program under this title.
``(f) Funding.--Pursuant to section 1310(a)(8), the
Director may use amounts from the National Flood Insurance
Fund to fund the activities of the Office of the Flood
Advocate in each of fiscal years 2008 through 2013, except
that the amount so used in each such fiscal year may not
exceed $5,000,000 and shall remain available until expended.
Notwithstanding any other provision of this title, amounts
made available pursuant to this subsection shall not be
subject to offsetting collections through premium rates for
flood insurance coverage under this title.''.

SEC. 132. STUDIES AND REPORTS.

(a) Report on Expanding the National Flood Insurance
Program.--Not later than 1 year after the date of the
enactment of this title, the Comptroller General of the
United States shall conduct a study and submit a report to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives, on--
(1) the number of flood insurance policy holders currently
insuring--
(A) a residential structure up to the maximum available
coverage amount, as established in section 61.6 of title 44,
Code of Federal Regulations, of--
(i) $250,000 for the structure; and
(ii) $100,000 for the contents of such structure; or
(B) a commercial structure up to the maximum available
coverage amount, as established in section 61.6 of title 44,
Code of Federal Regulations, of $500,000;
(2) the increased losses the National Flood Insurance
Program would have sustained during the 2004 and 2005
hurricane season if the National Flood Insurance Program had
insured all policyholders up to the maximum conforming loan
limit for fiscal year 2006 of $417,000, as established under
section 302(b)(2) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1717(b)(2));
(3) the availability in the private marketplace of flood
insurance coverage in amounts that exceed the current limits
of coverage amounts established in section 61.6 of title 44,
Code of Federal Regulations; and
(4) what effect, if any--
(A) raising the current limits of coverage amounts
established in section 61.6 of title 44, Code of Federal
Regulations, would have on the ability of private insurers to
continue providing flood insurance coverage; and

[[Page S3831]]

(B) reducing the current limits of coverage amounts
established in section 61.6 of title 44, Code of Federal
Regulations, would have on the ability of private insurers to
provide sufficient flood insurance coverage to effectively
replace the current level of flood insurance coverage being
provided under the National Flood Insurance Program.
(b) Report of the Director on Activities Under the National
Flood Insurance Program.--
(1) In general.--The Director shall, on an annual basis,
submit a full report on the operations, activities, budget,
receipts, and expenditures of the National Flood Insurance
Program for the preceding 12-month period to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives.
(2) Timing.--Each report required under paragraph (1) shall
be submitted to the committees described in paragraph (1) not
later than 3 months following the end of each fiscal year.
(3) Contents.--Each report required under paragraph (1)
shall include--
(A) the current financial condition and income statement of
the National Flood Insurance Fund established under section
1310 of the National Flood Insurance Act of 1968 (42 U.S.C.
4017), including--
(i) premiums paid into such Fund;
(ii) policy claims against such Fund; and
(iii) expenses in administering such Fund;
(B) the number and face value of all policies issued under
the National Flood Insurance Program that are in force;
(C) a description and summary of the losses attributable to
repetitive loss structures;
(D) a description and summary of all losses incurred by the
National Flood Insurance Program due to--
(i) hurricane related damage; and
(ii) nonhurricane related damage;
(E) the amounts made available by the Director for
mitigation assistance under section 1366(e)(5) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5))
for the purchase of properties substantially damaged by flood
for that fiscal year, and the actual number of flood damaged
properties purchased and the total cost expended to purchase
such properties;
(F) the estimate of the Director as to the average
historical loss year, and the basis for that estimate;
(G) the estimate of the Director as to the maximum amount
of claims that the National Flood Insurance Program would
have to expend in the event of a catastrophic year;
(H) the average--
(i) amount of insurance carried per flood insurance policy;
(ii) premium per flood insurance policy; and
(iii) loss per flood insurance policy; and
(I) the number of claims involving damages in excess of the
maximum amount of flood insurance available under the
National Flood Insurance Program and the sum of the amount of
all damages in excess of such amount.
(c) GAO Study on Pre-FIRM Structures.--Not later than 1
year after the date of the enactment of this title, the
Comptroller General of the United States shall conduct a
study and submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, on the--
(1) composition of the remaining pre-FIRM structures that
are explicitly receiving discounted premium rates under
section 1307 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104), including the historical basis for the receipt
of such subsidy and whether such subsidy has outlasted its
purpose;
(2) number and fair market value of such structures;
(3) respective income level of each owner of such
structure;
(4) number of times each such structure has been sold since
1968, including specific dates, sales price, and any other
information the Secretary determines appropriate;
(5) total losses incurred by such structures since the
establishment of the National Flood Insurance Program
compared to the total losses incurred by all structures that
are charged a nondiscounted premium rate;
(6) total cost of foregone premiums since the establishment
of the National Flood Insurance Program, as a result of the
subsidies provided to such structures;
(7) annual cost to the taxpayer, as a result of the
subsidies provided to such structures;
(8) the premium income collected and the losses incurred by
the National Flood Insurance Program as a result of such
explicitly subsidized structures compared to the premium
income collected and the losses incurred by such Program as
result of structures that are charged a nondiscounted premium
rate, on a State-by-State basis; and
(9) the most efficient way to eliminate the subsidy to such
structures.
(d) GAO Review of FEMA Contractors.--The Comptroller
General of the United States, in conjunction with the
Department of Homeland Security's Inspectors general Office,
shall--
(1) conduct a review of the 3 largest contractors the
Director uses in administering the National Flood Insurance
Program; and
(2) not later than 18 months after the date of enactment of
this title, submit a report on the findings of such review to
the Director, the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives.

TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND
INSURANCE

SEC. 201. SHORT TITLE.

This title may be cited as the ``Commission on Natural
Catastrophe Risk Management and Insurance Act of 2008''.

SEC. 202. FINDINGS.

Congress finds that--
(1) Hurricanes Katrina, Rita, and Wilma, which struck the
United States in 2005, caused, by some estimates, in excess
of $200,000,000,000 in total economic losses;
(2) many meteorologists predict that the United States is
in a period of increased hurricane activity;
(3) the Federal Government and State governments have
provided billions of dollars to pay for losses from natural
catastrophes, including hurricanes, earthquakes, volcanic
eruptions, tsunamis, tornados, flooding, wildfires, droughts,
and other natural catastrophes;
(4) many Americans are finding it increasingly difficult to
obtain and afford property and casualty insurance coverage;
(5) some insurers are not renewing insurance policies, are
excluding certain risks, such as wind damage, and are
increasing rates and deductibles in some markets;
(6) the inability of property and business owners in
vulnerable areas to obtain and afford property and casualty
insurance coverage endangers the national economy and public
health and safety;
(7) almost every State in the United States is at risk of a
natural catastrophe, including hurricanes, earthquakes,
volcanic eruptions, tsunamis, tornados, flooding, wildfires,
droughts, and other natural catastrophes;
(8) building codes and land use regulations play an
indispensable role in managing catastrophe risks, by
preventing building in high risk areas and ensuring that
appropriate mitigation efforts are completed where building
has taken place;
(9) several proposals have been introduced in Congress to
address the affordability and availability of natural
catastrophe insurance across the United States, but there is
no consensus on what, if any, role the Federal Government
should play; and
(10) an efficient and effective approach to assessing
natural catastrophe risk management and insurance is to
establish a nonpartisan commission to study the management of
natural catastrophe risk, and to require such commission to
timely report to Congress on its findings.

SEC. 203. ESTABLISHMENT.

There is established a nonpartisan Commission on Natural
Catastrophe Risk Management and Insurance (in this title
referred to as the ``Commission'').

SEC. 204. MEMBERSHIP.

(a) Appointment.--The Commission shall be composed of 16
members, of whom--
(1) 2 members shall be appointed by the majority leader of
the Senate;
(2) 2 members shall be appointed by the minority leader of
the Senate;
(3) 2 members shall be appointed by the Speaker of the
House of Representatives;
(4) 2 members shall be appointed by the minority leader of
the House of Representatives;
(5) 2 members shall be appointed by the Chairman of the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
(6) 2 members shall be appointed by the Ranking Member of
the Committee on Banking, Housing, and Urban Affairs of the
Senate;
(7) 2 members shall be appointed by the Chairman of the
Committee on Financial Services of the House of
Representatives; and
(8) 2 members shall be appointed by the Ranking Member of
the Committee on Financial Services of the House of
Representatives.
(b) Qualification of Members.--
(1) In general.--Members of the Commission shall be
appointed under subsection (a) from among persons who--
(A) have expertise in insurance, reinsurance, insurance
regulation, policyholder concerns, emergency management, risk
management, public finance, financial markets, actuarial
analysis, flood mapping and planning, structural engineering,
building standards, land use planning, natural catastrophes,
meteorology, seismology, environmental issues, or other
pertinent qualifications or experience; and
(B) are not officers or employees of the United States
Government or of any State government.
(2) Diversity.--In making appointments to the Commission--
(A) every effort shall be made to ensure that the members
are representative of a broad cross section of perspectives
within the United States; and
(B) each member of Congress described in subsection (a)
shall appoint not more than 1 person from any single primary
area of expertise described in paragraph (1)(A) of this
subsection.
(c) Period of Appointment.--
(1) In general.--Each member of the Commission shall be
appointed for the duration of the Commission.
(2) Vacancies.--A vacancy on the Commission shall not
affect its powers, but shall be filled in the same manner as
the original appointment.

[[Page S3832]]

(d) Quorum.--
(1) Majority.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number, as determined
by the Commission, may hold hearings.
(2) Approval actions.--All recommendations and reports of
the Commission required by this title shall be approved only
by a majority vote of all of the members of the Commission.
(e) Chairperson.--The Commission shall, by majority vote of
all of the members, select 1 member to serve as the
Chairperson of the Commission (in this title referred to as
the ``Chairperson'').
(f) Meetings.--The Commission shall meet at the call of its
Chairperson or a majority of the members.

SEC. 205. DUTIES OF THE COMMISSION.

The Commission shall examine the risks posed to the United
States by natural catastrophes, and means for mitigating
those risks and for paying for losses caused by natural
catastrophes, including assessing--
(1) the condition of the property and casualty insurance
and reinsurance markets prior to and in the aftermath of
Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major
hurricanes that struck the United States in 2004;
(2) the current condition of, as well as the outlook for,
the availability and affordability of insurance in all
regions of the country;
(3) the current ability of States, communities, and
individuals to mitigate their natural catastrophe risks,
including the affordability and feasibility of such
activities;
(4) the ongoing exposure of the United States to natural
catastrophes, including hurricanes, earthquakes, volcanic
eruptions, tsunamis, tornados, flooding, wildfires, droughts,
and other natural catastrophes;
(5) the catastrophic insurance and reinsurance markets and
the relevant practices in providing insurance protection to
different sectors of the American population;
(6) implementation of a catastrophic insurance system that
can resolve key obstacles currently impeding broader
implementation of catastrophic risk management and financing
with insurance;
(7) the financial feasibility and sustainability of a
national, regional, or other pooling mechanism designed to
provide adequate insurance coverage and increased
underwriting capacity to insurers and reinsurers, including
private-public partnerships to increase insurance capacity in
constrained markets;
(8) methods to promote public insurance policies to reduce
losses caused by natural catastrophes in the uninsured
sectors of the American population;
(9) approaches for implementing a public or private
insurance scheme for low-income communities, in order to
promote risk reduction and insurance coverage in such
communities;
(10) the impact of Federal and State laws, regulations, and
policies (including rate regulation, market access
requirements, reinsurance regulations, accounting and tax
policies, State residual markets, and State catastrophe
funds) on--
(A) the affordability and availability of catastrophe
insurance;
(B) the capacity of the private insurance market to cover
losses inflicted by natural catastrophes;
(C) the commercial and residential development of high-risk
areas; and
(D) the costs of natural catastrophes to Federal and State
taxpayers;
(11) the present and long-term financial condition of State
residual markets and catastrophe funds in high-risk regions,
including the likelihood of insolvency following a natural
catastrophe, the concentration of risks within such funds,
the reliance on post-event assessments and State funding, and
the adequacy of rates;
(12) the role that innovation in financial services could
play in improving the affordability and availability of
natural catastrophe insurance, specifically addressing
measures that would foster the development of financial
products designed to cover natural catastrophe risk, such as
risked-linked securities;
(13) the need for strengthened land use regulations and
building codes in States at high risk for natural
catastrophes, and methods to strengthen the risk assessment
and enforcement of structural mitigation and vulnerability
reduction measures, such as zoning and building code
compliance;
(14) the benefits and costs of proposed Federal natural
catastrophe insurance programs (including the Federal
Government providing reinsurance to State catastrophe funds,
private insurers, or other entities), specifically addressing
the costs to taxpayers, tax equity considerations, and the
record of other government insurance programs (particularly
with regard to charging actuarially sound prices);
(15) the ability of the United States private insurance
market--
(A) to cover insured losses caused by natural catastrophes,
including an estimate of the maximum amount of insured losses
that could be sustained during a single year and the
probability of natural catastrophes occurring in a single
year that would inflict more insured losses than the United
States insurance and reinsurance markets could sustain; and
(B) to recover after covering substantial insured losses
caused by natural catastrophes;
(16) the impact that demographic trends could have on the
amount of insured losses inflicted by future natural
catastrophes;
(17) the appropriate role, if any, for the Federal
Government in stabilizing the property and casualty insurance
and reinsurance markets; and
(18) the role of the Federal, State, and local governments
in providing incentives for feasible risk mitigation efforts.

SEC. 206. REPORT.

(a) In General.--Not later than 9 months after the date of
enactment of this title, the Commission shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives a final report containing--
(1) a detailed statement of the findings and assessments
conducted by the Commission pursuant to section 205; and
(2) any recommendations for legislative, regulatory,
administrative, or other actions at the Federal, State, or
local levels that the Commission considers appropriate, in
accordance with the requirements of section 205.
(b) Extension of Time.--The Commission may request Congress
to extend the period of time for the submission of the report
required under subsection (a) for an additional 3 months.

SEC. 207. POWERS OF THE COMMISSION.

(a) Meetings; Hearings.--The Commission may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission
considers necessary to carry out the purposes of this title.
Members may attend meetings of the Commission and vote in
person, via telephone conference, or via video conference.
(b) Authority of Members or Agents of the Commission.--Any
member or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is
authorized to take by this title.
(c) Obtaining Official Data.--
(1) Authority.--Notwithstanding any provision of section
552a of title 5, United States Code, the Commission may
secure directly from any department or agency of the United
States any information necessary to enable the Commission to
carry out this title.
(2) Procedure.--Upon request of the Chairperson, the head
of such department or agency shall furnish to the Commission
the information requested.
(d) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(e) Administrative Support Services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission, on a reimbursable basis, any
administrative support services necessary for the Commission
to carry out its responsibilities under this title.
(f) Acceptance of Gifts.--The Commission may accept, hold,
administer, and utilize gifts, donations, and bequests of
property, both real and personal, for the purposes of aiding
or facilitating the work of the Commission. The Commission
shall issue internal guidelines governing the receipt of
donations of services or property.
(g) Volunteer Services.--Notwithstanding the provisions of
section 1342 of title 31, United States Code, the Commission
may accept and utilize the services of volunteers serving
without compensation. The Commission may reimburse such
volunteers for local travel and office supplies, and for
other travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code.
(h) Federal Property and Administrative Services Act of
1949.--Subject to the Federal Property and Administrative
Services Act of 1949, the Commission may enter into contracts
with Federal and State agencies, private firms, institutions,
and individuals for the conduct of activities necessary to
the discharge of its duties and responsibilities.
(i) Limitation on Contracts.--A contract or other legal
agreement entered into by the Commission may not extend
beyond the date of the termination of the Commission.

SEC. 208. COMMISSION PERSONNEL MATTERS.

(a) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Commission.
(b) Subcommittees.--The Commission may establish
subcommittees and appoint members of the Commission to such
subcommittees as the Commission considers appropriate.
(c) Staff.--Subject to such policies as the Commission may
prescribe, the Chairperson may appoint and fix the pay of
such additional personnel as the Chairperson considers
appropriate to carry out the duties of the Commission. The
Commission shall confirm the appointment of the executive
director by majority vote of all of the members of the
Commission.
(d) Applicability of Certain Civil Service Laws.--Staff of
the Commission may be--
(1) appointed without regard to the provisions of title 5,
United States Code, governing appointments in the competitive
service; and

[[Page S3833]]

(2) paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the
annual rate of basic pay prescribed for GS-15 of the General
Schedule under section 5332 of that title.
(e) Experts and Consultants.--In carrying out its
objectives, the Commission may procure temporary and
intermittent services of consultants and experts under
section 3109(b) of title 5, United States Code, at rates for
individuals which do not exceed the daily equivalent of the
annual rate of basic pay prescribed for GS-15 of the General
Schedule under section 5332 of that title.
(f) Detail of Government Employees.--Upon request of the
Chairperson, any Federal Government employee may be detailed
to the Commission to assist in carrying out the duties of the
Commission--
(1) on a reimbursable basis; and
(2) such detail shall be without interruption or loss of
civil service status or privilege.

SEC. 209. TERMINATION.

The Commission shall terminate 90 days after the date on
which the Commission submits its report under section 206.

SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Commission,
such sums as may be necessary to carry out this title, to
remain available until expended.
______