text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``National Flood Insurance Program 
  Commitment to Policyholders and Reform Act of 2005''.
  
  SEC. 2. FINDINGS AND PURPOSES.
  
      (a) Findings.--The Congress finds that--
              (1) the amount of the flood insurance claims resulting from 
          Hurricane Katrina and Hurricane Rita will likely exceed the 
          aggregate amount of all claims previously paid in the history 
          of the national flood insurance program, and will require an 
          increase in the program's borrowing authority;
              (2) flood insurance policyholders have a legitimate 
          expectation that they will receive fair and timely compensation 
          for losses covered under their policies;
              (3) substantial flooding has occurred, and will likely 
          occur again, outside of the areas designated as the 100-year 
          floodplain;
              (4) to adequately and correctly assess potential flood 
          damage and losses in all areas on the United States, the 
          national flood insurance program will need to update its flood 
          maps with the latest technology;
              (5) the maximum coverage limits for flood insurance 
          policies should be increased to reflect inflation and the 
          increased cost of housing;
              (6) significant reforms to the national flood insurance 
          program required in the Bunning-Bereuter-Blumenauer Flood 
          Insurance Reform Act of 2004 have yet to be implemented; and
              (7) despite reforms required in the Bunning-Bereuter-
          Blumenauer Flood Insurance Reform Act of 2004, the national 
          flood insurance program requires a modernized and updated 
          administrative model to ensure that the people of the United 
          States have continued access to flood insurance.
      (b) Purposes.--The purposes of this Act are--
              (1) to protect the integrity of the national flood 
          insurance program by fully funding existing legal obligations 
          expected by existing policyholders who have paid policy 
          premiums in return for flood insurance coverage;
              (2) to increase incentives for homeowners and communities 
          to participate in the national flood insurance program and to 
          improve oversight to ensure full participation in the program 
          for owners of properties for which such participation is 
          mandatory;
              (3) to increase awareness of homeowners of flood risks and 
          improve the quality of information regarding such risks 
          provided to homeowners; and
              (4) to better mitigate future flood damage risks through a 
          combination of enhanced protective measures, property 
          elevation, and buyouts of flood-prone properties.
  
  SEC. 3. STUDY REGARDING MANDATORY PURCHASE REQUIREMENT FOR 500-YEAR 
                FLOODPLAIN AND REPORTS REGARDING FLOOD MAP MODERNIZATION.
  
      (a) Study Regarding Mandatory Purchase Requirement for 500-Year 
  Floodplain.--
              (1) In general.--The Comptroller General of the United 
          States shall conduct a study regarding the impact, 
          effectiveness, and feasibility of amending the provisions of 
          the Flood Disaster Protection Act of 1973 regarding the 
          properties that are subject to the mandatory flood insurance 
          coverage purchase requirements under such Act to extend such 
          requirements to all properties located in the 500-year 
          floodplain.
              (2) Issues.--The study under this subsection shall assess--
                      (A) the regulatory, financial and economic impacts 
                  of extending such requirements on the costs of 
                  homeownership, the actuarial soundness of the national 
                  flood insurance program, the Federal Emergency 
                  Management Agency, local communities, insurance 
                  companies, and local land use;
                      (B) the effectiveness of extending such 
                  requirements in protecting homeowners from financial 
                  loss and in protecting the financial soundness of the 
                  national flood insurance program, and the effectiveness 
                  of extending such requirements in comparison with 
                  providing for more effective enforcement of existing 
                  mandatory flood insurance purchase requirements;
                      (C) the feasibility of extending such requirements 
                  taking into consideration the need for identifying and 
                  mapping the 500-year floodplain;
                      (D) any liability on the part of lenders to comply 
                  with or enforce such extended requirements;
                      (E) any burdens on building officials and flood 
                  plain managers to implement such requirements in the 
                  expanded area;
                      (F) any increased burden on the Federal Emergency 
                  Management Agency to make determinations on exemptions 
                  to the floodplain and approval of local decisions;
                      (G) the effects of extending such requirements on 
                  existing policy holders of flood insurance coverage for 
                  properties located in the 100-year floodplain, 
                  including the effects on continued compliance and 
                  premium rates; and
                      (H) the effects of extending such requirements on 
                  the ability of homeowners to make renovations to their 
                  homes.
              (3) Report.--The Comptroller General shall submit a report 
          to the Congress regarding the results and conclusions of the 
          study under this subsection not later than the expiration of 
          the 6-month period beginning on the date of the enactment of 
          this Act.
      (b) Annual Flood Map Modernization Reports and Certification of 
  Completion.--
              (1) In general.--During the period that ends upon the 
          completion by the Director of the Federal Emergency Management 
          Agency of the updating and modernization of all floodplain 
          areas and flood-risk zones, the Director shall submit a report 
          annually to the Congress describing the extent to which such 
          updating and modernization has been completed. Upon the 
          completion of such updating, the Director shall submit to the 
          Congress, and cause to be published in the Federal Register, a 
          report certifying such completion.
              (2) Timing.--The first report under this subsection shall 
          be submitted not later than June 30, 2006, and successive 
          reports required under this subsection during the period 
          referred to in paragraph (1) shall be submitted not later than 
          June 30 of each year during such period.
  
  SEC. 4. ENFORCEMENT.
  
      Paragraph (5) of section 102(f) of the Flood Disaster Protection 
  Act of 1973 (42 U.S.C. 4012a) is amended--
              (1) by striking ``$350'' and inserting ``$2,000''; and
              (2) by striking the last sentence.
  
  SEC. 5. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.
  
      (a) Appeals Process.--As directed in section 205 of the Bunning-
  Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
  note), the Director of the Federal Emergency Management Agency is again 
  directed to, not later than 90 days after the date of the enactment of 
  this Act, establish an appeals process through which holders of a flood 
  insurance policy may appeal the decisions, with respect to claims, 
  proofs of loss, and loss estimates relating to such flood insurance 
  policy as required by such section.
      (b) Minimum Training and Education Requirements.--The Director of 
  the Federal Emergency Management Agency is directed to enforce the 
  minimum training and education requirements for all insurance agents 
  who sell flood insurance policies that have been established under the 
  notice published 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).
      (c) Mitigation Programs.--Not later than the expiration of the 30-
  day period beginning on the date of the enactment of this Act, the 
  Director of the Federal Emergency Management Agency shall issue 
  regulations necessary to implement the amendments made by sections 102, 
  103, 104, and 105 of the Bunning-Bereuter-Blumenauer Flood Insurance 
  Reform Act of 2004 (118 Stat. 714 et seq.).
      (d) Report.--Not later than the expiration of the 6-month period 
  beginning on the date of the enactment of this Act, the Director of the 
  Federal Emergency Management Agency shall submit a report to the 
  Congress describing the implementation of each provision of the 
  Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
  Law 108-264) and identifying each regulation, order, notice, and other 
  material issued by the Director in implementing each such provision.
  
  SEC. 6. MAXIMUM COVERAGE LIMITS.
  
      Subsection (b) of section 1306 of the National Flood Insurance Act 
  of 1968 (42 U.S.C. 4013(b)) is amended--
              (1) in paragraph (2), by striking ``$250,000'' and 
          inserting ``$335,500'';
              (2) in paragraph (3), by striking ``$100,000'' and 
          inserting ``$135,000''; and
              (3) in paragraph (4), by striking ``$500,000'' each place 
          such term appears and inserting ``$670,700''.
  
  SEC. 7. COVERAGE FOR ADDITIONAL LIVING EXPENSES AND BUSINESS 
                INTERRUPTION.
  
      Subsection (b) of section 1306 of the National Flood Insurance Act 
  of 1968 (42 U.S.C. 4013) is amended--
              (1) in paragraph (4), by striking ``and'' at the end;
              (2) in paragraph (5), by striking the period at the end and 
          inserting a semicolon; and
              (3) by adding at the end the following new paragraphs:
              ``(6) in the case of any residential property, each renewal 
          or new contract for flood insurance coverage shall provide not 
          less than $1,000 aggregate liability per dwelling unit for any 
          necessary increases in living expenses incurred by the insured 
          when losses from a flood make the residence unfit to live in, 
          which coverage shall be available only at chargeable rates that 
          are not less than the estimated premium rates for such coverage 
          determined in accordance with section 1307(a)(1);
              ``(7) in the case of any residential property, coverage for 
          additional living expenses described in paragraph (6) shall be 
          made available to every insured upon renewal and every 
          applicant in excess of the limits provided in paragraph (6) in 
          such amounts and at such rates as the Director shall establish, 
          except that such chargeable rates shall not be less than the 
          estimated premium rates for such coverage determined in 
          accordance with section 1307(a)(1); and
              ``(8) in the case of any commercial property, optional 
          coverage for losses resulting from any partial or total 
          interruption of the insured's business caused by damage to, or 
          loss of, such property from a flood shall be made available to 
          every insured upon renewal and every applicant, except that--
                      ``(A) for purposes of such coverage, losses shall 
                  be determined based on the profits the covered business 
                  would have earned, based on previous financial records, 
                  had the flood not occurred; and
                      ``(B) such coverage shall be made available only at 
                  chargeable rates that are not less than the estimated 
                  premium rates for such coverage determined in 
                  accordance with section 1307(a)(1).''.
  
  SEC. 8. INCREASE IN BORROWING AUTHORITY.
  
      (a) 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)), as amended by the National Flood Insurance Program Enhanced 
  Borrowing Authority Act of 2005 (Public Law 109-65; 119 Stat. 1998), is 
  amended by striking ``$3,500,000,000'' and inserting 
  ``$22,000,000,000''.
      (b) FEMA Report.--Not later than the expiration of the 6-month 
  period beginning on the date of the enactment of this Act, the Director 
  of the Federal Emergency Management Agency shall submit a report to the 
  Congress setting forth a plan for repaying any amounts borrowed 
  pursuant to increase in borrowing authority authorized under the 
  amendments made by subsection (a).
  
  SEC. 9. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND POLICY 
                LANGUAGE.
  
      Not later than the expiration of the 3-month period beginning on 
  the date of the enactment of this Act, the Director of the Federal 
  Emergency Management Agency shall--
              (1) issue regulations, and revise any materials made 
          available by such Agency, to clarify the applicability of 
          replacement cost coverage under the national flood insurance 
          program;
              (2) revise any regulations, forms, notices, guidance, and 
          publications relating to the full cost of repair or replacement 
          under the replacement cost coverage to more clearly describe 
          such coverage to flood insurance policyholders and information 
          to be provided by such policyholders relating to such coverage, 
          and to avoid providing misleading information to such 
          policyholders; and
              (3) revise the language in standard flood insurance 
          policies under such program regarding rating and coverage 
          descriptions in a manner that is consistent with language used 
          widely in other homeowners and property and casualty insurance 
          policies, including such language regarding classification of 
          buildings, basements, crawl spaces, detached garages, 
          enclosures below elevated buildings, and replacement costs.
  
  SEC. 10. FEMA REPORTS ON FINANCIAL STATUS OF INSURANCE PROGRAM.
  
      Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
  4027) is amended--
              (1) in the section heading, by striking ``REPORT TO THE 
          PRESIDENT'' and inserting ``REPORTS'';
              (2) in subsection (a), by striking ``In General'' and 
          inserting ``Biennial Report to President'' ; and
              (3) by adding at the end the following new subsection:
      ``(c) Semiannual Reports to Congress on Financial Status.--Not 
  later than June 30 and December 31 of each year, the Director shall 
  submit a report to the Congress regarding the financial status of the 
  national flood insurance program under this title. Each such report 
  shall describe the financial status of the National Flood Insurance 
  Fund and current and projected levels of claims, premium receipts, 
  expenses, and borrowing under the program.''.
  
  SEC. 11. NOTICE OF AVAILABILITY OF FLOOD INSURANCE IN RESPA GOOD FAITH 
                ESTIMATE.
  
      Subsection (c) of section 5 of the Real Estate Settlement 
  Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
  end the following new sentence: ``Each such good faith estimate shall 
  include a conspicuous statement that flood insurance coverage for 
  residential real estate is generally available under the National Flood 
  Insurance Program whether or not the real estate is located in an area 
  having special flood hazards and that, to obtain such coverage, a home 
  owner or purchaser should contact a hazard insurance provider.''.
  
  SEC. 12. ELIGIBILITY OF PROPERTY DEMOLITION AND REBUILDING FOR 
                MITIGATION ASSISTANCE PROGRAM.
  
      Subparagraph (B) of section 1366(e)(5) of the National Flood 
  Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is amended by 
  inserting before the semicolon at the end the following: ``, or the 
  demolition and rebuilding of structures located in such areas to at 
  least Base Flood Elevation or any higher elevation required by any 
  local ordinance''.
  
  SEC. 13. AUTHORIZATION OF ADDITIONAL FEMA STAFF.
  
      Notwithstanding any other provision of law, the Director of the 
  Federal Emergency Management Agency may employ such additional staff of 
  such Agency as may be necessary to carry out all of the 
  responsibilities of the Director pursuant to this Act and the 
  amendments made by this Act. There are authorized to be appropriated to 
  Director such sums as may be necessary for costs of employing such 
  additional staff.
target: National Flood Insurance Program Commitment to Policyholders and Reform Act of 2005 - (Sec. 3) Directs the Comptroller General to study and report to Congress on whether the mandatory flood insurance coverage purchase requirements of the Flood Disaster Protection Act of 1973 should extend to properties located in the 500-year floodplain.
  
  Requires the Director of the Federal Emergency Management Agency (FEMA) to report annually to Congress on the extent to which updating and modernization of all floodplain areas and flood-risk zones has been completed.
  
  (Sec. 4) Amends the Flood Disaster Protection Act of 1973 to: (1) increase from $350 to $2,000 the civil monetary penalty for mortgage lender failures to require flood insurance; and (2) eliminate the $100,000 cap on the total amount of such penalties assessed against any single regulated lending institution or enterprise during any calendar year.
  
  (Sec. 5) Requires the FEMA Director to: (1) establish an appeals process through which holders of a flood insurance policy may appeal decisions on claims, proofs of loss, and loss estimates relating to such flood insurance policy; (2) enforce the minimum training and education requirements for insurance agents who sell certain flood insurance policies; (3) issue regulations to implement specified requirements of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004; and (4) identify for Congress each regulation, order, notice, and other material issued by the Director to implement each provision of such Act.
  
  (Sec. 6) Amends the National Flood Insurance Act of 1968 to increase the maximum flood insurance coverage limits for residential property.
  
  (Sec. 7) Prescribes coverage of additional living expenses and business interruption.
  
  (Sec. 8) Increases from $3.5 billion to $22 billion the borrowing authority vested in the Director. Requires the Director to report to Congress a plan for repaying any amounts borrowed pursuant to such increase.
  
  (Sec. 9) Instructs the Director to: (1) issue regulations and revise materials to clarify replacement cost coverage under the national flood insurance program; and (2) revise regulations, forms, notices, guidance, and publications regarding the full cost of repair or replacement under the replacement cost coverage to more clearly describe such coverage and to avoid providing misleading information to policyholders.
  
  (Sec. 10) Requires the Director to report semi-annually to Congress on the financial status of the national flood insurance program.
  
  (Sec. 11) Amends the Real Estate Settlement Procedures Act of 1974 to require a good faith estimate to include a conspicuous statement that flood insurance coverage for residential real estate is generally available under the National Flood Insurance Program whether or not the real estate is located in an area having special flood hazards and that, to obtain such coverage, a home owner or purchaser should contact a hazard insurance provider.
  
  (Sec. 12) Amends the National Flood Insurance Act of 1968 to include among eligible mitigation plan activities the demolition and rebuilding of structures located in areas having special flood hazards to at least Base Flood Elevation or any higher elevation required by any local ordinance.
  
  (Sec. 13) Authorizes the Director to employ additional FEMA staff.
feat_title: To restore the financial solvency of the national flood insurance program, and for other purposes.