To adjust phase-ins of flood insurance rate increases.

SA 2707. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 1926, to delay the implementation of certain
provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 and
to reform the National Association of Registered Agents and Brokers,
and for other purposes; which was ordered to lie on the table; as
follows:

Strike sections 103 through 109 and insert the following:

SEC. 103. PHASE-IN OF FLOOD INSURANCE RATE INCREASES.

(a) Map Changes.--Section 1308(h) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(h)) is amended--
(1) in the second sentence, by striking ``shall be phased
in over a 5-year period'' and all that follows and inserting
the following: ``shall be implemented by increasing the risk
premium rate by 25 percent each year following such effective
date until the risk premium rate accurately reflects the
current risk of flood to such property.''; and
(2) in the third sentence, by striking ``shall be phased in
over a 5-year period'' and all that follows and inserting the
following: ``shall be phased in by increasing the risk
premium rate by 25 percent each year following the effective
date of such issuance, revision, updating, or change.''.
(b) Home Sale Trigger.--
(1) Phase-in.--Section 1308(e) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(3) described in section 1307(g)(2) that are principal
residences shall be increased by 25 percent each year,
beginning in the year after the first sale of such a property
that occurs after the date of enactment of the Biggert-Waters
Flood Insurance Reform Act of 2012 and continuing in each
successive year regardless of any further sale or resale of
the property, until the risk premium rate charged for the
property accurately reflects the current risk of flood to the
property.''.
(2) Application of phase-in to principal residences
purchased between july 7, 2012 and april 1, 2013.--
(A) Definition.--In this paragraph, the term ``eligible
policy'' means a flood insurance policy--
(i) that covers a principal residence that was purchased
during the period beginning on July 7, 2012 and ending on
April 1, 2013; and
(ii) for which the risk premium rate charged was increased,
after the purchase described in clause (i), to the full risk
premium rate estimated under subsection (a)(1) of section
1307 of the National Flood Insurance Act of 1968 (42 U.S.C.
4014) as required under subsection (g)(2) of such section (as
in effect on the day before the date of enactment of this
Act).
(B) Application of phase-in to risk premium rate upon
policy renewal.--The risk premium rate charged for an
eligible policy shall--
(i) on the date on which the policy is first renewed after
the date of enactment of this Act, be adjusted to be the rate
that would have been charged as of that date if the phase-in
provision under paragraph (3) of section 1308(e) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), as
added by paragraph (1) of this subsection, had been in effect
when the property covered by the eligible policy was
purchased; and
(ii) be increased by 25 percent each year thereafter, in
accordance with paragraph (3) of section 1308(e) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), as
added by paragraph (1) of this subsection.
(c) Promulgation of Regulations and Rate Tables.--
(1) In general.--The Administrator shall promulgate such
regulations and make available such rate tables as necessary
to implement subsections (a) and (b) and the amendments made
by those subsections, as though those subsections were
enacted as part of the Biggert-Waters Flood Insurance Reform
Act of 2012 (Public Law 112-141; 126 Stat. 916).
(2) Public participation.--To ensure community,
stakeholder, and expert participation in the promulgation of
regulations and the establishment of rate tables under this
subsection, the Administrator shall--
(A) publish the regulations and rate tables in the Federal
Register; and
(B) before promulgating final regulations and making
available final rate tables, provide a period for public
comment on the regulations and rate tables published under
subparagraph (A) that is not shorter than 45 days.
(3) Timing of premium changes.--To allow for appropriate
implementation of subsections (a) and (b) and the amendments
made by those subsections, the Administrator may not
implement any premium changes with respect to policy holders,
including charges or rebates, that are necessary to implement
subsections (a) and (b) and the amendments made by those
subsections until the date that is 6 months after the date on
which the Administrator promulgates final regulations and
makes available final rate tables under this subsection.
(d) Flood Insurance Fee.--
(1) In general.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding
at the end the following:
``(j) Fee to Offset Phase-in of Certain Premium Rate
Increases.--
``(1) In general.--The Administrator shall charge an annual
fee to each holder of a flood insurance policy issued under
this Act to offset the costs of the Homeowner Flood Insurance
Affordability Act of 2014 and the amendments made by that
Act.
``(2) Amount.--In establishing an amount of the fee to be
charged under paragraph (1), the Administrator shall charge a
policyholder with an annual household income that is not less
than $500,000 twice the amount that the Administrator charges
a policyholder with an annual household income that is less
than $500,000.''.
(2) Applicability.--The Administrator shall charge the fee
required under section 1308(j) of the National Flood
Insurance Act of 1968, as added by paragraph (1), with
respect to any flood insurance policy that is issued or
renewed on or after the date of enactment of this Act.

SEC. 104. AFFORDABILITY STUDY AND REPORT.

Notwithstanding the deadline under section 100236(c) of the
Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law
112-

[[Page S544]]

141; 126 Stat. 957), not later than 2 years after the date of
enactment of this Act, the Administrator shall submit to the
full Committee on Banking, Housing, and Urban Affairs and the
full Committee on Appropriations of the Senate and the full
Committee on Financial Services and the full Committee on
Appropriations of the House of Representatives the
affordability study and report required under such section.

SEC. 105. AFFORDABILITY STUDY FUNDING.

Section 100236(d) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112-141; 126 Stat. 957) is
amended by striking ``not more than $750,000'' and inserting
``such amounts as may be necessary''.

SEC. 106. FUNDS TO REIMBURSE HOMEOWNERS AND COMMUNITIES FOR
SUCCESSFUL MAP APPEALS.

(a) In General.--Section 1363(f) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104(f)) is amended--
(1) in the first sentence, by inserting after ``as the case
may be,'' the following: ``or, in the case of an appeal that
is resolved by submission of conflicting data to the
Scientific Resolution Panel provided for in section 1363A,
the community,''; and
(2) by striking the second sentence and inserting the
following: ``The Administrator may use such amounts from the
National Flood Insurance Fund established under section 1310
as may be necessary to carry out this subsection.''.
(b) Conforming Amendment.--Section 1310(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(8) for carrying out section 1363(f).''.

SEC. 107. FLOOD PROTECTION SYSTEMS.

(a) Adequate Progress on Construction of Flood Protection
Systems.--Section 1307(e) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(e)) is amended--
(1) in the first sentence, by inserting ``or
reconstruction'' after ``construction'';
(2) by striking the second sentence and inserting the
following: ``The Administrator shall find that adequate
progress on the construction or reconstruction of a flood
protection system, based on the present value of the
completed flood protection system, has been made only if (1)
100 percent of the cost of the system has been authorized,
(2) at least 60 percent of the cost of the system has been
appropriated, (3) at least 50 percent of the cost of the
system has been expended, and (4) the system is at least 50
percent completed.''; and
(3) by adding at the end the following: ``Notwithstanding
any other provision of law, in determining whether a
community has made adequate progress on the construction,
reconstruction, or improvement of a flood protection system,
the Administrator shall consider all sources of funding,
including Federal, State, and local funds.''.
(b) Communities Restoring Disaccredited Flood Protection
Systems.--Section 1307(f) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(f)) is amended by striking the first
sentence and inserting the following: ``Notwithstanding any
other provision of law, this subsection shall apply to
riverine and coastal levees that are located in a community
which has been determined by the Administrator of the Federal
Emergency Management Agency to be in the process of restoring
flood protection afforded by a flood protection system that
had been previously accredited on a Flood Insurance Rate Map
as providing 100-year frequency flood protection but no
longer does so, and shall apply without regard to the level
of Federal funding of or participation in the construction,
reconstruction, or improvement of the flood protection
system.''.

SEC. 108. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.

In implementing section 1308(h) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(h)), the Administrator
shall rate a covered structure using the elevation difference
between the floodproofed elevation of the covered structure
and the adjusted base flood elevation of the covered
structure.

SEC. 109. DESIGNATION OF FLOOD INSURANCE ADVOCATE.

(a) In General.--The Administrator shall designate a Flood
Insurance Advocate to advocate for the fair treatment of
policy holders under the National Flood Insurance Program and
property owners in the mapping of flood hazards, the
identification of risks from flood, and the implementation of
measures to minimize the risk of flood.
(b) Duties and Responsibilities.--The duties and
responsibilities of the Flood Insurance Advocate designated
under subsection (a) shall be to--
(1) educate property owners and policyholders under the
National Flood Insurance Program on--
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance rates through
effective mitigation; and
(D) the flood insurance rate map review and amendment
process;
(2) assist policy holders under the National Flood
Insurance Program and property owners to understand the
procedural requirements related to appealing preliminary
flood insurance rate maps and implementing measures to
mitigate evolving flood risks;
(3) assist in the development of regional capacity to
respond to individual constituent concerns about flood
insurance rate map amendments and revisions;
(4) coordinate outreach and education with local officials
and community leaders in areas impacted by proposed flood
insurance rate map amendments and revisions; and
(5) aid potential policy holders under the National Flood
Insurance Program in obtaining and verifying accurate and
reliable flood insurance rate information when purchasing or
renewing a flood insurance policy.
(c) Authorization of Appropriations.--There are authorized
to be appropriated for each fiscal year such sums as may be
necessary to carry out the duties and responsibilities of the
Flood Insurance Advocate.

SEC. 110. HOME IMPROVEMENT FAIRNESS.

Section 1307(a)(2)(E)(ii) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by
striking ``30 percent'' and inserting ``50 percent''.

SEC. 111. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD
INSURANCE PAYMENTS.

(a) In General.--Section 102(d)(1) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
(1) in subparagraph (A), in the second sentence, by
striking ``subparagraph (C)'' and inserting ``subparagraph
(B)''; and
(2) in subparagraph (B)--
(A) in clause (ii), by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively, and adjusting the
margins accordingly;
(B) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and adjusting the margins
accordingly;
(C) in the matter preceding subclause (I), as redesignated
by subparagraph (B), by striking ``(A) or (B), if--'' and
inserting the following: ``(A)--
``(i) if--'';
(D) by striking the period at the end and inserting ``;
or''; and
(E) by adding at the end the following
``(ii) in the case of a loan that is--

``(I) in a junior or subordinate position to a senior lien
secured by the same property for which flood insurance is
being provided at the time of the origination of the loan;
``(II) secured by residential improved real estate or a
mobile home that is part of a condominium, cooperative, or
other project development, if the residential improved real
estate or mobile home is covered by a flood insurance policy
that--

``(aa) meets the requirements that the regulated lending
institution is required to enforce under subsection (b)(1);
``(bb) is provided by the condominium association,
cooperative, homeowners association, or other applicable
group; and
``(cc) the premium for which is paid by the condominium
association, cooperative, homeowners association, or other
applicable group as a common expense;

``(III) secured by residential improved real estate or a
mobile home that is used as collateral for a business
purpose; or
``(IV) a home equity line of credit or a home equity
loan.''.

(b) Applicability.--
(1) In general.--
(A) Required application.--The amendments to section
102(d)(1) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-
141; 126 Stat. 920) and by subsection (a) of this section
shall apply to any loan that is originated, refinanced,
increased, extended, or renewed on or after January 1, 2016.
(B) Optional application.--
(i) Definitions.--In this subparagraph--

(I) the terms ``Federal entity for lending regulation'',
``improved real estate'', ``regulated lending institution'',
and ``servicer'' have the meanings given the terms in section
3 of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4003);
(II) the term ``outstanding loan'' means a loan that--

(aa) is outstanding as of January 1, 2016; and
(bb) would, if the loan had been originated, refinanced,
increased, extended, or renewed on or after January 1, 2016,
be subject to the requirements under section 102(d)(1)(A) of
the Flood Disaster Protection Act of 1973, as amended; and

(III) the term ``section 102(d)(1)(A) of the Flood Disaster
Protection Act of 1973, as amended'' means section
102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(d)(1)(A)), as amended by--

(aa) section 100209(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat.
920); and
(bb) subsection (a) of this section.
(ii) Option to escrow flood insurance payments.--Each
Federal entity for lending regulation (after consultation and
coordination with the Federal Financial Institutions
Examination Council) shall, by regulation, direct that each
regulated lending institution or servicer of an outstanding
loan shall offer and make available to a borrower the option
to have the borrower's payment of premiums and fees for flood
insurance under the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.), including the escrow of such payments,
be treated in the same manner provided under section
102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as
amended.
(2) Repeal of 2-year delay on applicability.--Subsection
(b) of section 100209 of the Biggert-Waters Flood Insurance
Reform

[[Page S545]]

Act of 2012 (Public Law 112-141; 126 Stat. 920) is repealed.
______