Page:United States Statutes at Large Volume 108 Part 3.djvu/532

 108 STAT. 2284 PUBLIC LAW 103-325—SEPT. 23, 1994 "(8) for costs of preparing the report under section 577 of the Riegle Community Development and Regulatory Improvement Act of 1994, except that the fund shall be available for the purpose under this paragraph in an amount not to exceed an aggregate of $5,000,000 over the 2-year period beginning on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.". 42 USC 4014 SEC. 578. STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY note. BASED PREMIUM RATES FOR PRE-FIRM STRUCTURES. (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 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 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 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. SEC. 579. EFFECTIVE DATES OF POLICIES. (a) 30-DAY DELAY.—Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsection: "(c) EFFECTIVE DATE OF POLICIES.— "(1) WAITING PERIOD. —Except as provided in paragraph (2), coverage under a new contract for flood insurance coverage under this title entered into after the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994, and any modification to coverage under an existing flood insurance contract made after such date, shall become effective upon the expiration of the 30-day period

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