National Flood Insurance Reform Act of 1994.

RIEGLE COMMUNITY DEVELOPMENT ACT

Subtitle D - Mitigation of Flood Risks

554. Establishment of National Flood Mitigation Fund

(a) IN GENERAL.-- Chapter III of the National Flood Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as amended by the preceding provisions of this title, is further amended by adding at the end the following new section:

“NATIONAL FLOOD MITIGATION FUND

“SEC. 1367. (a) ESTABLISHMENT AND AVAILABILITY.-- The Director shall establish in the Treasury of the United States a fund to be known as the National Flood Mitigation Fund, which shall be credited with amounts described in subsection (b) and shall be available, to the extent provided in appropriation Acts, for providing assistance under section 1366.

“(b) CREDITS.-- The National Flood Mitigation Fund shall be credited with-

"(1) amounts from the National Flood Insurance Fund, in amounts not exceeding-

"(A) $10,000,000 in the fiscal year ending September 30, 1994;

“(B) $15,000,000 in the fiscal year ending September 30, 1995;

“(C) $20,000,000 in the fiscal year ending September 30, 1996; and

“(D) $20,000,000 in each fiscal year thereafter;

“(2) any penalties collected under section 102(f) of the Flood Disaster Protection Act of 1973; and

“(3) any amounts recaptured under section 1366(i).

“(c) INVESTMENT.-- If the Director determines that the amounts in the National Flood Mitigation Fund are in excess of amounts needed under subsection (a), the Director may invest any excess amounts the Director determines advisable in interest-bearing obligations issued or guaranteed by the United States.

“(d) REPORT.-- The Director shall submit a report to the Congress not later than the expiration of the 1-year period beginning on the date of enactment of this Act and not less than once during each successive 2-year period thereafter. The report shall describe the status of the Fund and any activities carried out with amounts from the Fund.”.

(b) NATIONAL FLOOD INSURANCE FUND AS SEPARATE ACCOUNT.-- Section 1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended-

(1) in the matter preceding paragraph (1)--

(A) by striking “is authorized to” and inserting “shall”; and

(B) by inserting after “which shall be” the following: “an account separate from any other accounts or funds available to the Director and shall be”; and

(2) by adding after paragraph (6) (as added by the preceding provisions of this title) the following new paragraph:

“(7) for transfers to the National Flood Mitigation Fund, but only to the extent provided in section 1367(b)(1); and”.