Flood Insurance for Farmers Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 830 To amend the National Flood Insurance Act of 1968 to allow the repair, expansion, and construction, without elevation, of agricultural structures located in special flood hazard zones, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 29, 2019 Mr. GARAMENDI (for himself and Mr. LAMALFA) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the National Flood Insurance Act of 1968 to allow the repair, expansion, and construction, without elevation, of agricultural structures located in special flood hazard zones, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Flood Insurance for 4 Farmers Act of 2019’’. 5 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 2 •HR 830 IH SEC. 2. REQUIREMENTS FOR STATE AND LOCAL LAND USE 1 CONTROLS. 2 Subsection (a) of section 1315 of the National Flood 3 Insurance Act of 1968 (42 U.S.C. 4022(a)) is amended 4 by adding at the end the following new paragraph: 5 ‘‘(3) ALLOWABLE LOCAL VARIANCES FOR CER- 6 TAIN AGRICULTURAL STRUCTURES.— 7 ‘‘(A) REQUIREMENT.—Notwithstanding 8 any other provision of this Act— 9 ‘‘(i) the land use and control meas- 10 ures adopted pursuant to paragraph (1) 11 may not, for purposes of such paragraph, 12 be considered to be inadequate or incon- 13 sistent with the comprehensive criteria for 14 land management and use under section 15 1361 because such measures provide that, 16 in the case of any agricultural structure 17 that is located in an area having special 18 flood hazards, a variance from compliance 19 with the requirements to elevate or 20 floodproof such a structure and meeting 21 the requirements of subparagraph (B) may 22 be granted; and 23 ‘‘(ii) the Administrator may not sus- 24 pend a community from participation in 25 the national flood insurance program, or 26 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 3 •HR 830 IH place such a community on probation 1 under such program, because such land 2 use and control measures provide for such 3 a variance. 4 This subparagraph shall not limit the ability of 5 the Administrator to take enforcement action 6 against a community that does not adopt ade- 7 quate variance criteria or establish proper en- 8 forcement mechanisms. 9 ‘‘(B) VARIANCE; CONSIDERATIONS.—The 10 requirements of this subparagraph with respect 11 to a variance are as follows: 12 ‘‘(i) The variance is granted by an of- 13 ficial from a duly constituted State or local 14 zoning authority, or other authorized pub- 15 lic body responsible for regulating land de- 16 velopment or occupancy in flood-prone 17 areas. 18 ‘‘(ii) In the case of new construction, 19 such official has determined— 20 ‘‘(I) that neither floodproofing 21 nor elevation of the new structure to 22 the base flood elevation is practicable; 23 and 24 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 4 •HR 830 IH ‘‘(II) that the structure is not lo- 1 cated in— 2 ‘‘(aa) a designated regu- 3 latory floodway; 4 ‘‘(bb) an area riverward of a 5 levee or other flood control struc- 6 ture; or 7 ‘‘(cc) an area subject to high 8 velocity wave action or seaward 9 of flood control structures. 10 ‘‘(iii) In the case of existing struc- 11 tures— 12 ‘‘(I) if such structure is substan- 13 tially damaged or in need of substan- 14 tial repairs or improvements, such of- 15 ficial has determined that neither 16 floodproofing nor elevation to the base 17 flood elevation is practicable; and 18 ‘‘(II) if such structure is located 19 within a designated regulatory flood- 20 way, such official has determined that 21 the repair or improvement does not 22 result in any increase in base flood 23 levels during the base flood discharge. 24 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 5 •HR 830 IH ‘‘(iv) Such official has determined 1 that the variance will not result in in- 2 creased flood heights, additional threats to 3 public safety, extraordinary public expense, 4 create nuisances, cause fraud on or victim- 5 ization of the public, or conflict with exist- 6 ing local laws or ordinances. 7 ‘‘(v) Not more than one claim pay- 8 ment exceeding $1,000 has been made for 9 the structure under flood insurance cov- 10 erage under this title within any period of 11 10 consecutive years at any time prior to 12 the granting of the variance. 13 ‘‘(C) DEFINITIONS.—For purposes of this 14 paragraph, the following definitions shall apply: 15 ‘‘(i) AGRICULTURAL STRUCTURE.— 16 The term ‘agricultural structure’ has the 17 meaning given such term in paragraph 18 (2)(D), except that such term includes not 19 more than one single-family dwelling lo- 20 cated on the same property as the agricul- 21 tural operation at the date of enactment of 22 this Act, but only if such dwelling is occu- 23 pied by the owner or operator of the oper- 24 ation. 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 6 •HR 830 IH ‘‘(ii) FLOODPROOFING.—The term 1 ‘floodproofing’ means, with respect to a 2 structure, any combination of structural 3 and non-structural additions, changes, or 4 adjustments to the structure that reduce 5 or eliminate potential flood damage to real 6 estate or improved real property, water 7 and sanitary facilities, structures, or their 8 contents.’’. 9 SEC. 3. PREMIUM RATES. 10 Section 1308 of the National Flood Insurance Act of 11 1968 (42 U.S.C. 4015) is amended by adding at the end 12 the following new subsection: 13 ‘‘(n) PREMIUM RATES FOR CERTAIN AGRICULTURAL 14 STRUCTURES WITH VARIANCES.—Notwithstanding any 15 other provision of this Act, the chargeable premium rate 16 for coverage under this title for any structure provided a 17 variance pursuant to section 1315(a)(3) shall be the same 18 as the rate that otherwise would apply to such structure 19 if the structure had been dry floodproofed.’’. 20 SEC. 4. LEVEE-IMPACTED AREAS. 21 Section 1360 of the National Flood Insurance Act of 22 1968 (42 U.S.C. 4101) is amended by adding at the end 23 the following new subsection: 24 ‘‘(k) LEVEE-IMPACTED AREAS.— 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 7 •HR 830 IH ‘‘(1) IN GENERAL.—Subject only to full imple- 1 mentation of subparagraphs (A)(iii) and (B) of sec- 2 tion 100216(b)(1) of the Biggert-Waters Flood In- 3 surance Reform Act of 2012 (42 U.S.C. 4 4101b(b)(1)) and notwithstanding any other provi- 5 sion of law, if a community that applies to the Ad- 6 ministrator for the remapping of a levee-impacted 7 area in which the pertinent levee system fails to 8 meet the national flood insurance program’s min- 9 imum design, operation, and maintenance standards 10 required for levee accreditation on a flood insurance 11 rate map— 12 ‘‘(A) the Administrator shall establish 13 flood risk zones for those areas on such maps 14 to be known as AL zones; and 15 ‘‘(B) flood insurance shall be made avail- 16 able to properties located within such zones at 17 actuarial rates based upon the risk associated 18 with structures within the applicable AL zones. 19 ‘‘(2) TRANSITION.—Before the Administrator 20 has developed actuarial rates for the various AL 21 zones, covered structures within the portions of the 22 community located within the levee-impacted area 23 shall be eligible for rates associated with areas of 24 moderate flood hazards.’’. 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 8 •HR 830 IH SEC. 5. MULTIPLE AGRICULTURAL STRUCTURE POLICY 1 PILOT PROGRAM. 2 (a) AUTHORITY.—The Administrator of the Federal 3 Emergency Management Agency (in this section referred 4 to as the ‘‘Administrator’’) shall carry out a pilot program 5 under this section that provides for the sale of contracts 6 for flood insurance coverage under the National Flood In- 7 surance Act of 1968 that cover multiple non-residential 8 agricultural structures, as such term is defined in section 9 1315(a)(2)(D) of such Act (42 U.S.C. 4022(a)(2)(D)), 10 under a single flood insurance policy. 11 (b) AVAILABILITY IN REGULAR PROGRAM COMMU- 12 NITIES.—The Administrator may provide coverage under 13 the pilot program only for properties located in commu- 14 nities for which a flood insurance rate map is in effect 15 and in which the full limits of coverage under the National 16 Flood Insurance Act of 1968 are available. 17 (c) LIMIT OF COVERAGE.—Coverage provided under 18 the pilot program shall not exceed $500,000 aggregate li- 19 ability per policy for coverage of structures and $500,000 20 aggregate liability per policy for coverage of contents. 21 (d) APPLICABLE WAITING PERIODS.—Coverage pro- 22 vided under the pilot program shall comply with sub- 23 section (c) of section 1306 of the National Flood Insur- 24 ance Act of 1968 (42 U.S.C. 4013(c)). 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 9 •HR 830 IH (e) SUBSTANTIAL CONFORMANCE WITH GENERAL 1 POLICY FORM.— 2 (1) REQUIREMENTS.—Coverage provided under 3 the pilot program shall be consistent with, and as 4 substantially identical as possible to, the terms, con- 5 ditions, and exclusions found in the General Prop- 6 erty Form of the Standard Flood Insurance Policy, 7 as set forth in Appendix A(2) to Part 61 of title 44, 8 Code of Federal Regulations. 9 (2) IMPLEMENTATION.—Notwithstanding any 10 applicable rulemaking requirements, to the extent 11 necessary to implement the pilot program under this 12 section, the Administrator may issue endorsements 13 to the General Policy Form of the Standard Flood 14 Insurance Policy, as set forth in the Appendix re- 15 ferred to in paragraph (1), except that no such en- 16 dorsement may be issued before the expiration of the 17 6-month period beginning upon publication of such 18 endorsement in the Federal Register. 19 (f) EXCLUSIVE USE OF DIRECT SERVICING 20 AGENT.—Notwithstanding any other provision of law, or 21 arrangements entered into under section 1340 of the Na- 22 tional Flood Insurance Act of 1968 (42 U.S.C. 4071), the 23 Administrator shall sell contracts for coverage under the 24 pilot program under this section only through the facilities 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 10 •HR 830 IH of the Administrator’s direct serving agent for the national 1 flood insurance program. 2 (g) LIMITATION ON REFORMATION OF EXISTING 3 POLICIES.—The Administrator may not sell a contract for 4 coverage under the pilot program under this section for 5 a structure that covers any period during which the struc- 6 ture is covered under another contract for insurance cov- 7 erage made available under the National Flood Insurance 8 Act of 1968. 9 (h) RULE OF CONSTRUCTION.—Nothing in this sec- 10 tion may be construed to limit or restrict the Administra- 11 tor’s authority to provide, by regulation, for general terms 12 and conditions of flood insurance for multiple structures 13 under one flood insurance policy pursuant to sections 14 1305 and 1306 of the National Flood Insurance Act of 15 1968 (42 U.S.C. 4012, 4013). 16 (i) IMPLEMENTATION.—The Administrator may not 17 sell any policy for flood insurance coverage under the pilot 18 program under this section before the expiration of the 19 6-month period beginning upon publication in the Federal 20 Register of notice describing the pilot program and setting 21 forth the general terms and conditions of endorsements 22 to be sold under the program. 23 (j) TERMINATION.—The pilot program under this 24 section shall terminate upon, and the Administrator may 25 VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS 11 •HR 830 IH not sell any policy for flood insurance coverage under the 1 pilot program after, the expiration of the 6-year period 2 beginning upon the date of the enactment of this Act. 3 (k) REPORT TO CONGRESS.—Not later than the expi- 4 ration of the 5-year period beginning on the date of the 5 enactment of this Act, the Administrator shall submit a 6 report to the Congress describing and evaluating the pilot 7 program under this section. 8 Æ VerDate Sep 11 2014 02:20 Feb 07, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H830.IH H830 kjohnson on DSK79L0C42 with BILLS