[Pages S4446-S4448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

FLOOD INSURANCE REFORM AND MODERNIZATION ACT

Mr. REID. Mr. President, I ask unanimous consent that the remaining
time postcloture be yielded back and the Senate adopt the motion to
proceed to S. 1940.
The PRESIDING OFFICER. Is there objection?
Without objection, it is so ordered.
The motion was agreed to.
The PRESIDING OFFICER. The clerk will report the bill by title.
The assistant legislative clerk read as follows:

The bill (S. 1940) to amend the National Flood Insurance
Act of 1968, to restore the financial solvency of the flood
insurance fund, and for other purposes.

[[Page S4447]]

Mr. REID. Mr. President, I was coming here today to propound a
unanimous consent request on this most important piece of legislation
dealing with flood insurance, but after having had some discussions
with various people, at this time it would not be of any benefit. There
is no need for me to stand and ask unanimous consent when I know it is
not going to go anyplace.
So we are going to move this forward a little bit, and hopefully with
this we can move toward completing this bill at a very early time.

Amendment No. 2468

(Purpose: In the nature of a substitute.)

Mr. REID. Mr. President, on behalf of Senator Johnson of South Dakota
and Senator Shelby, I have a substitute amendment at the desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid], for Mr. Johnson of
South Dakota, for himself and Mr. Shelby, proposes an
amendment numbered 2468.

(The amendment is printed in today's Record under ``Text of
Amendments.'')
Mr. REID. Mr. President, I ask for the yeas and nays on that
amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 2469 to Amendment No. 2468

Mr. REID. Mr. President, on behalf of Senator Pryor, there is a
first-degree amendment at the desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid], for Mr. Pryor, for
himself and Mr. Hoeven, proposes an amendment numbered 2469
to amendment No. 2468.

The amendment is as follows:

(Purpose: To require the Government Accountability Office to study the
effect of applying the mandatory purchase requirements to areas of
residual risk, and to require the Administrator to study voluntary
community-based flood insurance options)

Strike section 107 and insert the following:

SEC. 107. AREAS OF RESIDUAL RISK.

(a) Areas of Residual Risk.--
(1) Definition.--Not later than 18 months after the date of
enactment of this Act, the Administrator, in consultation
with the Technical Mapping Advisory Council established under
section 117, shall establish a definition of the term ``area
of residual risk'', for purposes of the National Flood
Insurance Program, that is limited to areas that are not
areas having special flood hazards.
(2) This section.--In this section, the term ``area of
residual risk'' has the meaning established by the
Administrator under paragraph (1).
(b) Study and Report on Mandatory Purchase Requirements in
Areas of Residual Risk.--
(1) Study.--
(A) In general.--The Comptroller General of the United
States shall conduct a study assessing the potential impact
and effectiveness of applying the mandatory purchase
requirements under sections 102 and 202 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a and 4106) to
properties located in areas of residual risk.
(B) Areas of study.--In carrying out the study required
under subparagraph (A), the Comptroller General shall
evaluate--
(i) the regulatory, financial, and economic impact of
applying the mandatory purchase requirements described in
subparagraph (A) to areas of residual risk on--

(I) the costs of homeownership;
(II) the actuarial soundness of the National Flood
Insurance Program;
(III) the Federal Emergency Management Agency;
(IV) communities located in areas of residual risk;
(V) insurance companies participating in the National Flood
Insurance Program; and
(VI) the Disaster Relief Fund;

(ii) the effectiveness of the mandatory purchase
requirements in protecting--

(I) homeowners and taxpayers in the United States from
financial loss; and
(II) the financial soundness of the National Flood
Insurance Program;

(iii) the impact on lenders of complying with or enforcing
the mandatory purchase requirements;
(iv) the methodology that the Administrator uses to
adequately estimate the varying levels of residual risk
behind levees and other flood control structures; and
(v) the extent to which the risk premium rates under the
National Flood Insurance Program for property in the areas of
residual risk behind levees adequately account for--

(I) the design of the levees;
(II) the soundness of the levees;
(III) the hydrography of the areas of residual risk; and
(IV) any historical flooding in the areas of residual risk.

(2) Reports.--
(A) Initial report.--Not later than 12 months after the
date on which the Administrator establishes a definition of
the term ``area of residual risk'' under subsection (a)(1),
the Comptroller General shall submit to Congress a report
that--
(i) contains the results of the study required under
paragraph (1); and
(ii) provides recommendations to the Administrator on
improvements that may result in more accurate estimates of
varying levels of residual risk behind levees and other flood
control structures.
(B) Updated report.--Not later than 5 years after the date
on which the Comptroller General submits the report under
subparagraph (A), the Comptroller General shall--
(i) update the study conducted under paragraph (1); and
(ii) submit to Congress an updated report that--

(I) contains the results of the updated study required
under clause (i); and
(II) provides recommendations to the Administrator on
improvements that may result in more accurate estimates of
varying levels of residual risk behind levees and other flood
control structures.

(3) Adjustment of methodologies.--The Administrator shall,
to the extent practicable, adjust the methodologies used to
estimate the varying levels of residual risk behind levees
and other flood control structures based on the
recommendations submitted by the Comptroller General under
subparagraphs (A)(ii) and (B)(ii)(II).
(c) Study of Voluntary Community-based Flood Insurance
Options.--
(1) Study.--
(A) Study required.--The Administrator shall conduct a
study to assess options, methods, and strategies for making
available voluntary community-based flood insurance policies
through the National Flood Insurance Program.
(B) Considerations.--The study conducted under subparagraph
(A) shall --
(i) take into consideration and analyze how voluntary
community-based flood insurance policies--

(I) would affect communities having varying economic bases,
geographic locations, flood hazard characteristics or
classifications, and flood management approaches; and
(II) could satisfy the applicable requirements under
section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a); and

(ii) evaluate the advisability of making available
voluntary community-based flood insurance policies to
communities, subdivisions of communities, and areas of
residual risk.
(C) Consultation.--In conducting the study required under
subparagraph (A), the Administrator may consult with the
Comptroller General of the United States, as the
Administrator determines is appropriate.
(2) Report by the administrator.--
(A) Report required.--Not later than 18 months after the
date of enactment of this Act, the Administrator 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 that contains the results
and conclusions of the study conducted under paragraph (1).
(B) Contents.--The report submitted under subparagraph (A)
shall include recommendations for--
(i) the best manner to incorporate voluntary community-
based flood insurance policies into the National Flood
Insurance Program; and
(ii) a strategy to implement voluntary community-based
flood insurance policies that would encourage communities to
undertake flood mitigation activities, including the
construction, reconstruction, or improvement of levees, dams,
or other flood control structures.
(3) Report by comptroller general.--Not later than 6 months
after the date on which the Administrator submits the report
required under paragraph (2), the Comptroller General of the
United States shall--
(A) review the report submitted by the Administrator; and
(B) 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 that contains--
(i) an analysis of the report submitted by the
Administrator;
(ii) any comments or recommendations of the Comptroller
General relating to the report submitted by the
Administrator; and
(iii) any other recommendations of the Comptroller General
relating to community-based flood insurance policies.

Mr. REID. I ask for the yeas and nays on that amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 2470 to Amendment No. 2469

Mr. REID. Mr. President, I have a second-degree amendment, which is
also at the desk.

[[Page S4448]]

The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes an amendment
numbered 2470 to amendment No. 2469.

The amendment is as follows:

At the end, add the following new section:

SEC. __.

This Act shall become effective 7 days after enactment.

Amendment No. 2471

Mr. REID. Mr. President, I have an amendment at the desk to the
language proposed to be stricken.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes amendment
numbered 2471 to the language proposed to be stricken by
amendment No. 2468.

The amendment is as follows:

At the end, add the following new section:

SEC. __.

This title shall become effective 5 days after enactment.

Mr. REID. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 2472 to Amendment No. 2471

Mr. REID. Mr. President, I have a second-degree amendment at the
desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes an amendment
numbered 2472 to amendment No. 2471.

The amendment is as follows:

In the amendment, strike ``5 days'' and insert ``4 days''.

Motion to Recommit With Amendment No. 2473

Mr. REID. Mr. President, I have a motion to recommit the bill with
instructions, which is also at the desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] moves to recommit the
bill, S. 1940, to the Committee on Banking, Housing, and
Urban Affairs with instructions to report back forthwith with
an amendment numbered 2473.

The amendment is as follows:

At the end, add the following new section:

SEC. __.

This Act shall become effective 3 days after enactment.

Mr. REID. I ask for the yeas and nays on that motion.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 2474

Mr. REID. Mr. President, I have an amendment to the instructions at
the desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes an amendment
numbered 2474 to the instructions of the motion to recommit
S. 1940.

The amendment is as follows:

In the amendment, strike ``3 days'' and insert ``2 days''.
Mr. REID. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 2475 to Amendment No. 2474

Mr. REID. Mr. President, I have a second-degree amendment at the
desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes an amendment
numbered 2475 to amendment No. 2474.

The amendment is as follows:

In the amendment, strike ``2 days'' and insert ``1 day''.

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