
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4014]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
           SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
 
Sec. 4014. Estimates of premium rates


(a) Studies and investigations

    The Director is authorized to undertake and carry out such studies 
and investigations and receive or exchange such information as may be 
necessary to estimate, and shall from time to time estimate, on an area, 
subdivision, or other appropriate basis--
        (1) the risk premium rates for flood insurance which--
            (A) based on consideration of the risk involved and accepted 
        actuarial principles, and
            (B) including--
                (i) the applicable operating costs and allowances set 
            forth in the schedules prescribed under section 4018 of this 
            title and reflected in such rates,
                (ii) any administrative expenses (or portion of such 
            expenses) of carrying out the flood insurance program which, 
            in his discretion, should properly be reflected in such 
            rates, and
                (iii) any remaining administrative expenses incurred in 
            carrying out the flood insurance and floodplain management 
            programs (including the costs of mapping activities under 
            section 4101 of this title) not included under clause (ii), 
            which shall be recovered by a fee charged to policyholders 
            and such fee shall not be subject to any agents' 
            commissions, company expense allowances, or State or local 
            premium taxes,

    would be required in order to make such insurance available on an 
    actuarial basis for any types and classes of properties for which 
    insurance coverage is available under section 4012(a) of this title 
    (or is recommended to the Congress under section 4012(b) of this 
    title);
        (2) the rates, if less than the rates estimated under paragraph 
    (1), which would be reasonable, would encourage prospective insureds 
    to purchase flood insurance, and would be consistent with the 
    purposes of this chapter, and which, together with a fee charged to 
    policyholders that shall not be not subject to any agents' 
    commission, company expenses allowances, or State or local premium 
    taxes, shall include any administrative expenses incurred in 
    carrying out the flood insurance and floodplain management programs 
    (including the costs of mapping activities under section 4101 of 
    this title); and
        (3) the extent, if any, to which federally assisted or other 
    flood protection measures initiated after August 1, 1968, affect 
    such rates.

(b) Utilization of services of other Departments and agencies

    In carrying out subsection (a) of this section, the Director shall, 
to the maximum extent feasible and on a reimbursement basis, utilize the 
services of the Department of the Army, the Department of the Interior, 
the Department of Agriculture, the Department of Commerce, and the 
Tennessee Valley Authority, and, as appropriate, other Federal 
departments or agencies, and for such purposes may enter into agreements 
or other appropriate arrangements with any persons.

(c) Priority to studies and investigations in States or areas evidencing 
        positive interest in securing insurance under program

    The Director shall give priority to conducting studies and 
investigations and making estimates under this section in those States 
or areas (or subdivisions thereof) which he has determined have 
evidenced a positive interest in securing flood insurance coverage under 
the flood insurance program.

(d) Parishes of Louisiana; premium rates

    Notwithstanding any other provision of law, any structure existing 
on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, 
or Saint Landry Parish in the State of Louisiana, which the Secretary 
determines is subject to additional flood hazards as a result of the 
construction or operation of the Atchafalaya Basin Levee System, shall 
be eligible for flood insurance under this chapter (if and to the extent 
it is eligible for such insurance under the other provisions of this 
chapter) at premium rates that shall not exceed those which would be 
applicable if such additional hazards did not exist.

(e) Eligibility of community making adequate progress on construction of 
        flood protection system for rates not exceeding those applicable 
        to completed flood protection system; determination of adequate 
        progress

    Notwithstanding any other provision of law, any community that has 
made adequate progress, acceptable to the Director, on the construction 
of a flood protection system which will afford flood protection for the 
one-hundred year frequency flood as determined by the Director, shall be 
eligible for flood insurance under this chapter (if and to the extent it 
is eligible for such insurance under the other provisions of this 
chapter) at premium rates not exceeding those which would be applicable 
under this section if such flood protection system had been completed. 
The Director shall find that adequate progress on the construction of a 
flood protection system as required herein has been only if (1) 100 
percent of the project cost of the system has been authorized, (2) at 
least 60 percent of the project cost of the system has been 
appropriated, (3) at least 50 percent of the project cost of the system 
has been expended, and (4) the system is at least 50 percent completed.

(f) Availability of flood insurance in communities restoring 
        disaccredited flood protection systems; criteria; rates

    Notwithstanding any other provision of law, this subsection shall 
only apply in a community which has been determined by the Director 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. 
Except as provided in this subsection, in such a community, flood 
insurance shall be made available to those properties impacted by the 
disaccreditation of the flood protection system at premium rates that do 
not exceed those which would be applicable to any property located in an 
area of special flood hazard, the construction of which was started 
prior to the effective date of the initial Flood Insurance Rate Map 
published by the Director for the community in which such property is 
located. A revised Flood Insurance Rate Map shall be prepared for the 
community to delineate as Zone AR the areas of special flood hazard that 
result from the disaccreditation of the flood protection system. A 
community will be considered to be in the process of restoration if--
        (1) the flood protection system has been deemed restorable by a 
    Federal agency in consultation with the local project sponsor;
        (2) a minimum level of flood protection is still provided to the 
    community by the disaccredited system; and
        (3) restoration of the flood protection system is scheduled to 
    occur within a designated time period and in accordance with a 
    progress plan negotiated between the community and the Federal 
    Emergency Management Agency.

Communities that the Director of the Federal Emergency Management Agency 
determines to meet the criteria set forth in paragraphs (1) and (2) as 
of January 1, 1992, shall not be subject to revised Flood Insurance Rate 
Maps that contravene the intent of this subsection. Such communities 
shall remain eligible for C zone rates for properties located in zone AR 
for any policy written prior to promulgation of final regulations for 
this section. Floodplain management criteria for such communities shall 
not require the elevation of improvements to existing structures and 
shall not exceed 3 feet above existing grade for new construction, 
provided the base flood elevation based on the disaccredited flood 
control system does not exceed five feet above existing grade, or the 
remaining new construction in such communities is limited to infill 
sites, rehabilitation of existing structures, or redevelopment of 
previously developed areas.

The Director of the Federal Emergency Management Agency shall develop 
and promulgate regulations to implement this subsection, including 
minimum floodplain management criteria, within 24 months after October 
28, 1992.

(Pub. L. 90-448, title XIII, Sec. 1307, Aug. 1, 1968, 82 Stat. 576; Pub. 
L. 93-234, title I, Sec. 109, Dec. 31, 1973, 87 Stat. 980; Pub. L. 93-
383, title VIII, Sec. 816(b), Aug. 22, 1974, 88 Stat. 739; Pub. L. 98-
181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 
101-508, title II, Sec. 2302(e)(1), Nov. 5, 1990, 104 Stat. 1388-24; 
Pub. L. 102-550, title IX, Sec. 928, Oct. 28, 1992, 106 Stat. 3886.)


                               Amendments

    1992--Subsec. (f). Pub. L. 102-550 added subsec. (f).
    1990--Subsec. (a)(1)(B)(iii). Pub. L. 101-508, Sec. 2302(e)(1)(A)-
(C), added cl. (iii).
    Subsec. (a)(2). Pub. L. 101-508, Sec. 2302(e)(1)(D), inserted before 
semicolon ``, and which, together with a fee charged to policyholders 
that shall not be not subject to any agents' commission, company 
expenses allowances, or State or local premium taxes, shall include any 
administrative expenses incurred in carrying out the flood insurance and 
floodplain management programs (including the costs of mapping 
activities under section 4101 of this title)''.
    1983--Subsecs. (a) to (c), (e). Pub. L. 98-181 substituted 
``Director'' for ``Secretary'' wherever appearing.
    1974--Subsec. (e). Pub. L. 93-383 added subsec. (e).
    1973--Subsec. (d). Pub. L. 93-234 added subsec. (d).


 Study of Economic Effects of Charging Actuarially Based Premium Rates 
                         for Pre-FIRM Structures

    Pub. L. 103-325, title V, Sec. 578, Sept. 23, 1994, 108 Stat. 2284, 
provided that:
    ``(a) Study.--The Director of the Federal Emergency Management 
Agency (in this section referred to as the `Director') shall conduct a 
study of the economic effects that would result from increasing premium 
rates for flood insurance coverage made available under the national 
flood insurance program for pre-FIRM structures to the full actuarial 
risk based premium rate determined under section 1307(a)(1) of the 
National Flood Insurance Act of 1968 [42 U.S.C. 4014(a)(1)] for the area 
in which the property is located. In conducting the study, the Director 
shall--
        ``(1) determine each area that would be subject to such 
    increased premium rates; and
        ``(2) for each such area, determine--
            ``(A) the amount by which premium rates would be increased;
            ``(B) the number and types of properties affected and the 
        number and types of properties covered by flood insurance under 
        this title [probably means title XIII of Pub. L. 90-448 which 
        enacted this chapter see Short Title note set out under section 
        4001 of this title and Tables] likely to cancel such insurance 
        if the rate increases were made;
            ``(C) the effects that the increased premium rates would 
        have on land values and property taxes; and
            ``(D) any other effects that the increased premium rates 
        would have on the economy and homeowners.
    ``(b) Definition of Pre-FIRM Structure.--For purposes of subsection 
(a), the term `pre-FIRM structure' means a structure that was not 
constructed or substantially improved after the later of--
        ``(1) December 31, 1974; or
        ``(2) the effective date of the initial rate map published by 
    the Director under section 1360(a)(2) of the National Flood 
    Insurance Act of 1968 [42 U.S.C. 4101(a)(2)] for the area in which 
    such structure is located.
    ``(c) Report.--The Director shall submit a report to the Congress 
describing and explaining the findings of the study conducted under this 
section. The report shall be submitted not later than 12 months after 
the date of enactment of this Act [Sept. 23, 1994].''


                          Sea Level Rise Study

    Pub. L. 101-137, Sec. 5, Nov. 3, 1989, 103 Stat. 825, directed 
Director of Federal Emergency Management Agency to conduct a study to 
determine the impact of relative sea level rise on the flood insurance 
rate maps, such study also to project the economic losses associated 
with estimated sea level rise and aggregate such data for the United 
States as a whole and by region, with Director to report results of 
study to Congress not later than one year after Nov. 3, 1989.

                  Section Referred to in Other Sections

    This section is referred to in sections 4012, 4013, 4015, 4022, 
4054, 4056 of this title.
