H.R. 435

National Flood Insurance Program Termination Act of 2010

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I

112th CONGRESS

1st Session

H. R. 435

IN THE HOUSE OF REPRESENTATIVES

January 25, 2011

Mrs. Miller of Michigan introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To terminate the National Flood Insurance Program and related mandatory purchase and compliance requirements, and for other purposes.

1.

Short title

This Act may be cited as the National Flood Insurance Program Termination Act of 2010.

2.

Termination of National Flood Insurance Program

(a)

Termination of authority To provide coverage

Effective at the end of December 31, 2013, the Administrator of the Federal Emergency Management Agency (in this section referred to as the Administrator) shall not provide any new flood insurance coverage, or renew any coverage provided before such date, under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

(b)

Treatment of existing coverage

Subsection (a) shall not—

(1)

affect any flood insurance coverage provided under such Act under a contract or agreement entered into before the date specified in such subsection and, notwithstanding the repeals under section 3, such provisions as in effect immediately before such repeal shall continue to apply with respect to flood insurance coverage in force after such repeal; or

(2)

require the termination of any contract or other agreement for flood insurance coverage entered into before such date.

(c)

Wind-Up

After the date specified in subsection (a), the Administrator shall take such actions as may be necessary steps to wind up the affairs of the National Flood Insurance Program.

(d)

Treatment of funds

Amounts in the National Flood Insurance Fund established under section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 4017) shall be available to the Administrator for performing the functions of the Administrator with respect to flood insurance coverage remaining in force after the date specified in subsection (a). Upon the expiration of the contracts and agreements for such coverage, any unexpended balances in such Fund shall be deposited in the Treasury as miscellaneous receipts.

(e)

Savings provisions

(1)

Treatment of prior determinations

The repeals made by section 3 of the provisions of law specified in such section shall not affect any order, determination, regulation, or contract that has been issued, made, or allowed to become effective under such provisions before the effective date of the repeal. All such orders, determinations, regulations, and contracts shall continue in effect until modified, superseded, terminated, set aside, or revoked in accordance with law by the President, the Administrator, or other authorized official, a court of competent jurisdiction, or by operation of law.

(2)

Pending proceedings

(A)

Effect on pending proceedings

The repeals made by section 3 shall not affect any proceedings relating to the National Flood Insurance Program, including notices of proposed rulemaking, pending on the effective date of the repeals, before the Federal Emergency Management Agency, except that no assistance or flood insurance coverage may be provided pursuant to any application pending on such effective date. Such proceedings, to the extent that they relate to functions performed by the Administrator after such repeal, shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this Act had not been enacted; and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the Administrator, by a court of competent jurisdiction, or by operation of law.

(B)

Construction

Nothing in this subsection may be construed to prohibit the discontinuance or modification of any proceeding described in subparagraph (A) under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted.

(3)

Actions

This section shall not affect suits commenced before the effective date of the repeals made by section 3, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and effect as if this section had not been enacted.

(4)

Liabilities incurred

No suit, action, or other proceeding commenced by or against an individual in the official capacity of such individual as an officer of the Federal Emergency Management Agency having any responsibility for the National Flood Insurance Program shall abate by reason of the enactment of this section. No cause of action relating to such Program, by or against the Federal Emergency Management Agency, or by or against any officer thereof in the official capacity of such officer having any responsibility for such program, shall abate by reason of the enactment of this section.

3.

Repeals and continuation of FEMA mapping responsibilities

(a)

National Flood Insurance Act of 1968

The National Flood Insurance Act of 1968 is amended—

(1)

by striking section 1302 (42 U.S.C. 4001);

(2)

by striking chapters I and II (42 U.S.C. 4011 et seq.);

(3)

in section 1360 (42 U.S.C. 4101)—

(A)

in subsection (a)(2), by striking until the date specified in section 1319;

(B)

by striking subsection (d);

(C)

in subsection (g)—

(i)

by striking To promote compliance with the requirements of this title, the and inserting The;

(ii)

by striking directly responsible for coordinating the national flood insurance program;

(iii)

in the last sentence, by striking National Flood Insurance Fund, pursuant to section 1310(b)(6) and inserting the following: General Fund of the Treasury and shall be used only for reducing the debt of the Federal Government; and

(D)

in subsection (i)—

(i)

by striking free of charge and inserting at cost;

(ii)

by striking and States and communities participating in the national flood insurance program pursuant to section 1310 and at cost to all other and inserting , States and communities, and other interested; and

(iii)

in the he last sentence, by striking National Flood Insurance Fund, pursuant to section 1310(b)(6) and inserting the following: General Fund of the Treasury and shall be used only for reducing the debt of the Federal Government;

(4)

by striking sections 1361A (42 U.S.C. 4102a);

(5)

in section 1363(e) (42 U.S.C. 4104(e)), by striking the third and fifth sentences; and

(6)

in section 1364 (42 U.S.C. 4104a)—

(A)

in subsection (a)—

(i)

in paragraphs (1) and (2), by striking or the Flood Disaster Protection Act of 1973 each place such term appears; and

(ii)

in paragraph (3)—

(I)

by striking subparagraphs (B) and (C) and inserting the following:

(B)

a statement that flood insurance coverage may be available in the private market or through a State-sponsored program; and

; and

(II)

by redesignating subparagraph (D) as subparagraph (C);

(B)

by striking subsections (b) and (c);

(7)

in section 1365 (42 U.S.C. 4104b)—

(A)

in subsection (a), by striking and in which flood insurance under this title is available; and

(B)

in subsection (b)—

(i)

by striking paragraph (1); and

(ii)

in paragraph (2)—

(I)

in the first sentence, by striking the community identification number and community participation status (for purposes of the national flood insurance program) of the community in which the improved real estate or such property is located,; and

(II)

in the third sentence, by striking because the building or mobile home is not located in a community that is participating in the national flood insurance program or;

(8)

by striking sections 1366 and 1367 (42 U.S.C. 4104c, 4104d);

(9)

in section 1370 (42 U.S.C. 4121)—

(A)

by striking paragraphs (3), (4), (5), (7), (14), and (15);

(B)

in paragraph (12)(B), by striking the semicolon at the end and inserting ; and;

(C)

in paragraph (13), by striking the semicolon at the end and inserting a period; and

(D)

by redesignating paragraphs (6), (8), (9), (10), (11), (12), and (13), as so amended, as paragraphs (3), (4), (5), (6), (7), (8), and (9), respectively;

(10)

by striking sections 1371 through 1375 (42 U.S.C. 4122–26);

(11)

in section 1376 (42 U.S.C. 4127)—

(A)

in subsection (a), by striking to carry out this title and all that follows through the end of paragraph (3) and inserting to carry out the mapping, studies, investigations, and other responsibilities of the Director under this title; and

(B)

by striking subsection (c); and

(12)

by striking section 1377 (42 U.S.C. 4001 note).

(b)

Flood Disaster Protection Act of 1973

The Flood Disaster Protection Act of 1973 is amended—

(1)

by striking section 2 (42 U.S.C. 4002);

(2)

by striking section 102 (42 U.S.C. 4012a);

(3)

in section 201 (42 U.S.C. 4105)—

(A)

by striking subsection (a) and inserting the following new subsection:

(a)

As information becomes available to the Director concerning the existence of flood hazards, the Director shall publish information in accordance with section 1360(a)(1) of the National Flood Insurance Act of 1968 and shall notify the chief executive officer of each known flood-prone community of its tentative identification as a community containing one or more areas having special flood hazards.

;

(B)

in subsection (b), by striking shall either (1) promptly make proper application to participate in the national flood insurance program or (2) and inserting may;

(C)

by striking subsections (c) and (d);

(D)

by redesignating subsection (e) as subsection (c); and

(4)

by striking section 202 (42 U.S.C. 4106).

(c)

Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004

Title II of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).

(d)

National Flood Insurance Reform Act of 1994

The National Flood Insurance Reform Act of 1994 is amended by striking sections 561 (42 U.S.C. 4011 note), 562 (42 U.S.C. 4102 note), 578 (42 U.S.C. 4014 note), 579(b), and 582 (42 U.S.C. 5154a).

(e)

Federal Flood Insurance Act of 1956

Section 15 of the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414) is amended by striking subsection (e).

(f)

Effective date

The amendments made by this section shall take effect at the end of December 31, 2013.

4.

Interstate compacts for flood insurance coverage

(a)

Congressional consent

The consent of the Congress is hereby given to any two or more States to enter into agreement or compacts, not in conflict with any law of the United States, for making available to interested persons insurance coverage against loss resulting from physical damage to or loss of real property or personal property related thereto arising from any flood occurring in the United States.

(b)

Rights reserved

The right to alter, amend, or repeal this section, or consent granted by this section, is expressly reserved to the Congress.