Union Calendar No. 23

106TH CONGRESS

1ST SESSION H. R. 707

[Report No. 106–40]

A BILL

To amend the Robert T. Stafford Disaster Relief

other purposes.the Federal costs of disaster assistance, and forthe administration of disaster relief, to controlprogram for predisaster mitigation, to streamlineand Emergency Assistance Act to authorize a

MARCH 3, 1999

Reported with amendments, committed to the Committee

dered to be printedof the Whole House on the State of the Union, and or-
IB

Union Calendar No. 23

106TH CONGRESS

1ST SESSION H. R. 707

[Report No. 106–40]

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance

Act to authorize a program for predisaster mitigation, to streamline

the administration of disaster relief, to control the Federal costs of

disaster assistance, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 1999

Mrs. FOWLER (for herself, Mr. TRAFICANT, Mr. BOEHLERT, and Mr. BORSKI)

introduced the following bill; which was referred to the Committee on

Transportation and Infrastructure

MARCH 3, 1999

Additional sponsors: Mr. TERRY, Mr. DOOLITTLE, Mr. NADLER, Ms.

BERKLEY, and Mr. SWEENEY

MARCH 3, 1999

Reported with amendments, committed to the Committee of the Whole House

on the State of Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on February 11, 1999]

A BILL

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to authorize a program for

predisaster mitigation, to streamline the administration
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of disaster relief, to control the Federal costs of disaster

assistance, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Disaster Mitigation and

5 Cost Reduction Act of 1999’’.

6 SEC. 2. AMENDMENTS TO ROBERT T. STAFFORD DISASTER

7 RELIEF AND EMERGENCY ASSISTANCE ACT.

8 Except as otherwise specifically provided, whenever in

9 this Act an amendment or repeal is expressed in terms of

10 an amendment to, or repeal of, a section or other provision

11 of law, the reference shall be considered to be made to a

12 section or other provision of the Robert T. Stafford Disaster

13 Relief and Emergency Assistance Act (42 U.S.C. 5121 et

14 seq.).

15 TITLE I—PREDISASTER HAZARD

16 MITIGATION

17 SEC. 101. FINDINGS AND PURPOSE.

18 (a) FINDINGS.—Congress finds that—

19 (1) greater emphasis needs to be placed on iden20 tifying and assessing the risks to State and local com21 munities and implementing adequate measures to re22 duce losses from natural disasters and to ensure that

23 critical facilities and public infrastructure will con24 tinue to function after a disaster;
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1 (2) expenditures for post-disaster assistance are

2 increasing without commensurate reduction in the

3 likelihood of future losses from such natural disasters;

4 (3) a high priority in the expenditure of Federal

5 funds under the Robert T. Stafford Disaster Relief

6 and Emergency Assistance Act should be to imple7 ment predisaster activities at the local level; and

8 (4) with a unified effort of economic incentives,

9 awareness and education, technical assistance, and

10 demonstrated Federal support, States and local com11 munities will be able to increase their capabilities to

12 form effective community-based partnerships for miti13 gation purposes, implement effective natural disaster

14 mitigation measures that reduce the risk of future

15 damage, hardship, and suffering, ensure continued

16 functioning of critical facilities and public infrastruc17 ture, leverage additional non-Federal resources into

18 meeting disaster resistance goals, and make commit19 ments to long-term mitigation efforts in new and ex20 isting structures.

21 (b) PURPOSE.—It is the purpose of this title to estab22 lish a predisaster hazard mitigation program that—

23 (1) reduces the loss of life and property, human

24 suffering, economic disruption, and disaster assist25 ance costs resulting from natural hazards; and
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1 (2) provides a source of predisaster hazard miti2 gation funding that will assist States and local gov3 ernments in implementing effective mitigation meas4 ures that are designed to ensure the continued func5 tioning of critical facilities and public infrastructure

6 after a natural disaster.

7 SEC. 102. STATE MITIGATION PROGRAM.

8 Section 201(c) (42 U.S.C. 5131(c)) is amended—

9 (1) by striking ‘‘and’’ at the end of paragraph

10 (1);

11 (2) by striking the period at the end of para12 graph (2) and inserting ‘‘; and’’; and

13 (3) by adding at the end the following:

14 ‘‘(3) set forth, with the ongoing cooperation of

15 local governments and consistent with section 409, a

16 comprehensive and detailed State program for miti17 gating against emergencies and major disasters, in18 cluding provisions for prioritizing mitigation meas19 ures.’’.

20 SEC. 103. DISASTER ASSISTANCE PLANS.

21 Section 201(d) (42 U.S.C. 5131(d)) is amended to read

22 as follows:

23 ‘‘(d) GRANTS FOR DISASTER ASSISTANCE AND HAZ24 ARD IDENTIFICATION.—The President is authorized to make

25 grants for—
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1 ‘‘(1) not to exceed 50 percent of the cost of im2 proving, maintaining, and updating State disaster

3 assistance plans including, consistent with section

4 409, evaluation of natural hazards and development

5 of the programs and actions required to mitigate such

6 hazards; and

7 ‘‘(2) the development and application of im8 proved floodplain mapping technologies that can be

9 used by Federal, State, and local governments and

10 that the President determines will likely result in sub11 stantial savings over current floodplain mapping

12 methods.’’.

13 SEC. 104. PREDISASTER HAZARD MITIGATION.

14 Title II (42 U.S.C. 5131–5132) is amended by adding

15 at the end the following:

16 ‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.

17 ‘‘(a) GENERAL AUTHORITY.—The President may es18 tablish a program to provide financial assistance to States

19 and local governments for the purpose of undertaking

20 predisaster hazard mitigation activities that are cost effec21 tive and substantially reduce the risk of future damage,

22 hardship, or suffering from a major disaster.

23 ‘‘(b) PURPOSE OF ASSISTANCE.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), a State or local government that receives
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1 financial assistance under this section shall use the

2 assistance for funding activities that are cost effective

3 and substantially reduce the risk of future damage,

4 hardship, or suffering from a major disaster.

5 ‘‘(2) DISSEMINATION.—The State or local gov6 ernment may use not more than 10 percent of finan7 cial assistance it receives under this section in a fis8 cal year for funding activities to disseminate infor9 mation regarding cost effective mitigation technologies

10 (such as preferred construction practices and mate11 rials), including establishing and maintaining centers

12 for protection against natural disasters to carry out

13 such dissemination.

14 ‘‘(c) ALLOCATION OF FUNDS.—The amount of finan15 cial assistance to be made available to a State, including

16 amounts made available to local governments of such State,

17 under this section in a fiscal year shall—

18 ‘‘(1) not be less than the lesser of $500,000 or 1.0

19 percent of the total funds appropriated to carry out

20 this section for such fiscal year; but

21 ‘‘(2) not exceed 15 percent of such total funds.

22 ‘‘(d) CRITERIA.—Subject to the limitations of sub23 sections (c) and (e), in determining whether to provide as24 sistance to a State or local government under this section
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1 and the amount of such assistance, the President shall con2 sider the following criteria:

3 ‘‘(1) The clear identification of prioritized cost4 effective mitigation activities that produce meaningful

5 and definable outcomes.

6 ‘‘(2) If the State has submitted a mitigation pro7 gram in cooperation with local governments under

8 section 201(c), the degree to which the activities iden9 tified in paragraph (1) are consistent with the State

10 mitigation program.

11 ‘‘(3) The extent to which assistance will fund ac12 tivities that mitigate hazards evaluated under section

13 409.

14 ‘‘(4) The opportunity to fund activities that

15 maximize net benefits to society.

16 ‘‘(5) The ability of the State or local government

17 to fund mitigation activities.

18 ‘‘(6) The extent to which assistance will fund

19 mitigation activities in small impoverished commu20 nities.

21 ‘‘(7) The level of interest by the private sector to

22 enter into a partnership to promote mitigation.

23 ‘‘(8) Such other criteria as the President estab24 lishes in consultation with State and local govern25 ments.
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1 ‘‘(e) STATE NOMINATIONS.—

2 ‘‘(1) IN GENERAL.—The Governor of each State

3 may recommend to the President not less than 5 local

4 governments to receive assistance under this section.

5 The recommendations shall be submitted to the Presi6 dent not later than October 1, 1999, and each October

7 1st thereafter or such later date in the year as the

8 President may establish. In making such rec9 ommendations, the Governors shall consider the cri10 teria identified in subsection (d).

11 ‘‘(2) USE.—

12 ‘‘(A) GENERAL RULE.—In providing assist13 ance to local governments under this section, the

14 President shall select from local governments rec15 ommended by the Governors under this sub16 section.

17 ‘‘(B) WAIVER.—Upon request of a local gov18 ernment, the President may waive the limitation

19 in subparagraph (A) if the President determines

20 that extraordinary circumstances justify the

21 waiver and that granting the waiver will further

22 the purpose of this section.

23 ‘‘(3) EFFECT OF FAILURE TO NOMINATE.—If a

24 Governor of a State fails to submit recommendations

25 under this subsection in a timely manner, the Presi-
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1 dent may select, subject to the criteria in subsection

2 (d), any local governments of the State to receive as3 sistance under this section.

4 ‘‘(f) SMALL IMPOVERISHED COMMUNITIES.—For the

5 purpose of this section, the term ‘small impoverished com6 munities’ means communities of 3,000 or fewer individuals

7 that are economically disadvantaged, as determined by the

8 State in which the community is located and based on cri9 teria established by the President.

10 ‘‘(g) FEDERAL SHARE.—Financial assistance pro11 vided under this section may contribute up to 75 percent

12 of the total cost of mitigation activities approved by the

13 President; except that the President may contribute up to

14 90 percent of the total cost of mitigation activities in small

15 impoverished communities.

16 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is

17 authorized to be appropriated to carry out this section

18 $25,000,000 for fiscal year 1999 and $80,000,000 for fiscal

19 year 2000.

20 ‘‘(i) AUTHORIZATION OF SECTION 404 FUNDS.—Effec21 tive October 1, 2000, in addition to amounts appropriated

22 under subsection (h) from only appropriations enacted after

23 October 1, 2000, the President may use, to carry out this

24 section, funds that are appropriated to carry out section

25 404 for post-disaster mitigation activities that have not
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1 been obligated within 30 months of the disaster declaration

2 upon which the funding availability is based.

3 ‘‘(j) REPORT ON FEDERAL AND STATE ADMINISTRA4 TION.—Not later than 18 months after the date of enact5 ment of the Disaster Mitigation and Cost Reduction Act

6 of 1999, the President, in consultation with State and local

7 governments, shall transmit to Congress a report evaluating

8 efforts to implement this section and recommending a proc9 ess for transferring greater authority and responsibility for

10 administering the assistance program authorized by this

11 section to capable States.’’.

12 SEC. 105. INTERAGENCY TASK FORCE.

13 The President shall establish an interagency task force

14 for the purpose of coordinating the implementation of the

15 predisaster hazard mitigation program authorized by sec16 tion 203 of the Robert T. Stafford Disaster Relief and

17 Emergency Assistance Act. The Director of the Federal

18 Emergency Management Agency shall chair such task force.

19 SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION

20 COSTS.

21 (a) IN GENERAL.—Section 404(a) (42 U.S.C.

22 5170c(a)) is amended by striking ‘‘15 percent’’ and insert23 ing ‘‘20 percent’’.

24 (b) APPLICABILITY.—The amendment made by sub25 section (a) shall apply to major disasters declared under
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1 the Robert T. Stafford Disaster Relief Act and Emergency

2 Assistance Act after January 1, 1997.

3 SEC. 107. CONFORMING AMENDMENT.

4 The heading for title II is amended to read as follows:

5 ‘‘TITLE II—DISASTER PREPARED6 NESS AND MITIGATION AS7 SISTANCE’’.

8 TITLE II—STREAMLINING AND

9 COST REDUCTION

10 SEC. 201. MANAGEMENT COSTS.

11 (a) IN GENERAL.—Title III (42 U.S.C. 5141–5164) is

12 amended by adding at the end the following:

13 ‘‘SEC. 322. MANAGEMENT COSTS.

14 ‘‘(a) IN GENERAL.—Notwithstanding any other provi15 sion of law (including any administrative rule or guid16 ance), the President shall establish by rule management cost

17 rates for grantees and subgrantees. Such rates shall be used

18 to determine contributions under this Act for management

19 costs.

20 ‘‘(b) MANAGEMENT COSTS DEFINED.—Management

21 costs include indirect costs, administrative expenses, associ22 ated expenses, and any other expenses not directly charge23 able to a specific project under a major disaster, emergency,

24 or emergency preparedness activity or measure. Such costs

25 include the necessary costs of requesting, obtaining, and ad-
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1 ministering Federal assistance and costs incurred by a

2 State for preparation of damage survey reports, final in3 spection reports, project applications, final audits, and re4 lated field inspections by State employees, including over5 time pay and per diem and travel expenses of such employ6 ees, but not including pay for regular time of such employ7 ees.

8 ‘‘(c) REVIEW.—The President shall review the manage9 ment cost rates established under subsection (a) not later

10 than 3 years after the date of establishment of such rates

11 and periodically thereafter.’’.

12 (b) APPLICABILITY.—Section 322 of the Robert T.

13 Stafford Disaster Relief and Emergency Assistance Act (as

14 added by subsection (a) of this section) shall apply as fol15 lows:

16 (1) Subsections (a) and (b) of such section 322

17 shall apply to major disasters declared under such

18 Act on or after the date of enactment of this Act.

19 Until the date on which the President establishes the

20 management cost rates under such subsection, section

21 406(f) shall be used for establishing such rates.

22 (2) Subsection (c) of such section 322 shall apply

23 to major disasters declared under such Act on or after

24 the date on which the President establishes such rates

25 under subsection (a) of such section 322.
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1 SEC. 202. ASSISTANCE TO REPAIR, RESTORE, RECON2 STRUCT, OR REPLACE DAMAGED FACILITIES.

3 (a) CONTRIBUTIONS.—Section 406(a) (42 U.S.C.

4 5172(a)) is amended to read as follows:

5 ‘‘(a) CONTRIBUTIONS.—

6 ‘‘(1) IN GENERAL.—The President may make

7 contributions—

8 ‘‘(A) to a State or local government for the

9 repair, restoration, reconstruction, or replace10 ment of a public facility which is damaged or

11 destroyed by a major disaster and for associated

12 expenses incurred by such government; and

13 ‘‘(B) subject to paragraph (2), to a person

14 who owns or operates a private nonprofit facility

15 damaged or destroyed by a major disaster for the

16 repair, restoration, reconstruction, or replace17 ment of such facility and for associated expenses

18 incurred by such person.

19 ‘‘(2) CONDITIONS FOR ASSISTANCE TO PRIVATE

20 NONPROFIT FACILITIES.—

21 ‘‘(A) IN GENERAL.—The President may

22 make contributions to a private nonprofit facil23 ity under paragraph (1)(B) only if—

24 ‘‘(i) the facility provides critical serv25 ices (as defined by the President) in the

26 event of a major disaster; or
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1 ‘‘(ii)(I) the owner or operator of the fa2 cility has applied for a disaster loan under

3 section 7(b) of the Small Business Act (15

4 U.S.C. 636(b)); and

5 ‘‘(II) has been determined to be ineli6 gible for such a loan; or

7 ‘‘(III) has obtained such a loan in the

8 maximum amount for which the Small

9 Business Administration determines the fa10 cility is eligible.

11 ‘‘(B) CRITICAL SERVICES DEFINED.—In this

12 paragraph, the term ‘critical services’ includes,

13 but is not limited to, power, water, sewer, waste14 water treatment, communications, and emer15 gency medical care.’’.

16 (b) MINIMUM FEDERAL SHARE.—Section 406(b) (42

17 U.S.C. 5172(b)) is amended to read as follows:

18 ‘‘(b) MINIMUM FEDERAL SHARE.—The Federal share

19 of assistance under this section shall be not less than 75

20 percent of the eligible cost of repair, restoration, reconstruc21 tion, or replacement carried out under this section.’’.

22 (c) LARGE IN-LIEU CONTRIBUTIONS.—Section 406(c)

23 (42 U.S.C. 5172(c)) is amended to read as follows:

24 ‘‘(c) LARGE IN-LIEU CONTRIBUTIONS.—

25 ‘‘(1) FOR PUBLIC FACILITIES.—
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1 ‘‘(A) IN GENERAL.—In any case in which a

2 State or local government determines that the

3 public welfare would not be best served by re4 pairing, restoring, reconstructing, or replacing

5 any public facility owned or controlled by such

6 State or local government, the State or local gov7 ernment may elect to receive, in lieu of a con8 tribution under subsection (a)(1)(A), a contribu9 tion of 75 percent of the Federal share of the

10 Federal estimate of the cost of repairing, restor11 ing, reconstructing, or replacing such facility

12 and of management expenses.

13 ‘‘(B) USE OF FUNDS.—Funds contributed to

14 a State or local government under this para15 graph may be used to repair, restore, or expand

16 other selected public facilities, to construct new

17 facilities, or to fund hazard mitigation measures

18 which the State or local government determines

19 to be necessary to meet a need for governmental

20 services and functions in the area affected by the

21 major disaster.

22 ‘‘(2) FOR PRIVATE NONPROFIT FACILITIES.—

23 ‘‘(A) IN GENERAL.—In any case where a

24 person who owns or operates a private nonprofit

25 facility determines that the public welfare would
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1 not be best served by repairing, restoring, recon2 structing, or replacing such facility, such person

3 may elect to receive, in lieu of a contribution

4 under subsection (a)(1)(B), a contribution of 75

5 percent of the Federal share of the Federal esti6 mate of the cost of repairing, restoring, recon7 structing, or replacing such facility and of man8 agement expenses.

9 ‘‘(B) USE OF FUNDS.—Funds contributed to

10 a person under this paragraph may be used to

11 repair, restore, or expand other selected private

12 nonprofit facilities owned or operated by the per13 son, to construct new private nonprofit facilities

14 to be owned or operated by the person, or to fund

15 hazard mitigation measures that the person de16 termines to be necessary to meet a need for its

17 services and functions in the area affected by the

18 major disaster.

19 ‘‘(3) MODIFICATION OF FEDERAL SHARE.—The

20 President shall modify the Federal share of the cost

21 estimate provided in paragraphs (1) and (2) if the

22 President determines an alternative cost share will

23 likely reduce the total amount of Federal assistance

24 provided under this section. The Federal cost share for
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1 purposes of paragraphs (1) and (2) shall not exceed

2 90 percent and shall not be less than 50 percent.’’.

3 (d) ELIGIBLE COST.—

4 (1) IN GENERAL.—Section 406(e) (42 U.S.C.

5 5172(e)) is amended to read as follows:

6 ‘‘(e) ELIGIBLE COST.—

7 ‘‘(1) IN GENERAL.—For the purposes of this sec8 tion, the estimate of the cost of repairing, restoring,

9 reconstructing, or replacing a public facility or pri10 vate nonprofit facility on the basis of the design of

11 such facility as it existed immediately before the

12 major disaster and in conformity with current appli13 cable codes, specifications, and standards (including

14 floodplain management and hazard mitigation cri15 teria required by the President or by the Coastal Bar16 rier Resources Act (16 U.S.C. 3501 et seq.)) shall be

17 treated as the eligible cost of such repair, restoration,

18 reconstruction, or replacement. Subject to paragraph

19 (2), the President shall use the cost estimation proce20 dures developed under paragraph (3) to make the esti21 mate under this paragraph.

22 ‘‘(2) MODIFICATION OF ELIGIBLE COST.—In the

23 event the actual cost of repairing, restoring, recon24 structing, or replacing a facility under this section is

25 more than 120 percent or less than 80 percent of the
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1 cost estimated under paragraph (1), the President

2 may determine that the eligible cost be the actual cost

3 of such repair, restoration, reconstruction, or replace4 ment. The government or person receiving assistance

5 under this section shall reimburse the President for

6 the portion of such assistance that exceeds the eligible

7 cost of such repair, restoration, reconstruction, or re8 placement.

9 ‘‘(3) USE OF SURPLUS FUNDS.—In the event the

10 actual cost of repairing, restoring, reconstructing, or

11 replacing a facility under this section is less than 100

12 percent but not less than 80 percent of the cost esti13 mated under paragraph (1), the government or person

14 receiving assistance under this section shall use any

15 surplus funds to perform activities that are cost-effec16 tive and reduce the risk of future damage, hardship,

17 or suffering from a major disaster.

18 ‘‘(4) EXPERT PANEL.—Not later than 18 months

19 after the date of enactment of the Disaster Mitigation

20 and Cost Reduction Act of 1999, the President, acting

21 through the Director of the Federal Emergency Man22 agement Agency, shall establish an expert panel, in23 cluding representatives from the construction indus24 try, to develop procedures for estimating the cost of
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1 repairing, restoring, reconstructing, or replacing a fa2 cility consistent with industry practices.

3 ‘‘(5) SPECIAL RULE.—In any case in which the

4 facility being repaired, restored, reconstructed, or re5 placed under this section was under construction on

6 the date of the major disaster, the cost of repairing,

7 restoring, reconstructing, or replacing such facility

8 shall include, for purposes of this section, only those

9 costs which, under the contract for such construction,

10 are the owner’s responsibility and not the contractor’s

11 responsibility.’’.

12 (2) EFFECTIVE DATE.—The amendment made by

13 paragraph (1) shall take effect on the date of enact14 ment of this Act, and shall only apply to funds ap15 propriated after the date of enactment of this Act; ex16 cept that paragraph (1) of section 406(e) of the Rob17 ert T. Stafford Disaster Relief and Emergency Assist18 ance Act (as amended by paragraph (1) of this sub19 section) shall take effect on the date that the proce20 dures developed under paragraph (3) of such section

21 take effect.

22 (e) ASSOCIATED EXPENSES.—

23 (1) IN GENERAL.—Section 406 (42 U.S.C. 4172)

24 is amended by striking subsection (f).
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1 (2) OTHER ELIGIBLE COSTS.—Section 406(e) (42

2 U.S.C. 5172(e)), as amended by subsection (d) of this

3 section, is amended by adding at the end the follow4 ing:

5 ‘‘(6) OTHER ELIGIBLE COSTS.—For purposes of

6 this section, other eligible costs include the following:

7 ‘‘(A) COSTS OF NATIONAL GUARD.—The cost

8 of mobilizing and employing the National Guard

9 for performance of eligible work.

10 ‘‘(B) COSTS OF PRISON LABOR.—The costs

11 of using prison labor to perform eligible work,

12 including wages actually paid, transportation to

13 a worksite, and extraordinary costs of guards,

14 food, and lodging.

15 ‘‘(C) OTHER LABOR COSTS.—Base and over16 time wages for an applicant’s employees and

17 extra hires performing eligible work plus fringe

18 benefits on such wages to the extent that such

19 benefits were being paid before the disaster.’’.

20 (3) EFFECTIVE DATE.—Paragraphs (1) and (2)

21 shall take effect on the date on which the President es22 tablishes management cost rates under section 322(a)

23 of the Robert T. Stafford Disaster Relief and Emer24 gency Assistance Act (as added by section 201(a) of

25 this Act). The amendment made by paragraph (1)
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1 shall only apply to disasters declared by the President

2 under such Act after the date on which the President

3 establishes such cost rates.

4 SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND

5 HOUSEHOLDS.

6 (a) IN GENERAL.—Section 408 (42 U.S.C. 5174) is

7 amended to read as follows:

8 ‘‘SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND

9 HOUSEHOLDS.

10 ‘‘(a) GENERAL AUTHORITY.—Subject to the require11 ments of this section, the President, in consultation with

12 the Governor of the affected State, may provide financial

13 assistance, and, if necessary, direct services, to disaster vic14 tims who as a direct result of a major disaster have nec15 essary expenses and serious needs where such victims are

16 unable to meet such expenses or needs through other means.

17 ‘‘(b) HOUSING ASSISTANCE.—

18 ‘‘(1) ELIGIBILITY.—The President may provide

19 financial or other assistance under this section to in20 dividuals and families to respond to the disaster-re21 lated housing needs of those who are displaced from

22 their predisaster primary residences or whose

23 predisaster primary residences are rendered uninhab24 itable as a result of damage caused by a major disas25 ter.
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1 ‘‘(2) DETERMINATION OF APPROPRIATE TYPES

2 OF ASSISTANCE.—The President shall determine ap3 propriate types of housing assistance to be provided

4 to disaster victims under this section based upon con5 siderations of cost effectiveness, convenience to disas6 ter victims, and such other factors as the President

7 may consider appropriate. One or more types of hous8 ing assistance may be made available, based on the

9 suitability and availability of the types of assistance,

10 to meet the needs of disaster victims in the particular

11 disaster situation.

12 ‘‘(c) TYPES OF HOUSING ASSISTANCE.—

13 ‘‘(1) TEMPORARY HOUSING.—

14 ‘‘(A) FINANCIAL ASSISTANCE.—

15 ‘‘(i) IN GENERAL.—The President may

16 provide financial assistance under this sec17 tion to individuals or households to rent al18 ternate housing accommodations, existing

19 rental units, manufactured housing, rec20 reational vehicles, or other readily fab21 ricated dwellings.

22 ‘‘(ii) AMOUNT.—The amount of assist23 ance under clause (i) shall be based on the

24 fair market rent for the accommodation

25 being furnished plus the cost of any trans-
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1 portation, utility hookups, or unit installa2 tion not being directly provided by the

3 President.

4 ‘‘(B) DIRECT ASSISTANCE.—

5 ‘‘(i) IN GENERAL.—The President may

6 also directly provide under this section

7 housing units, acquired by purchase or

8 lease, to individuals or households who, be9 cause of a lack of available housing re10 sources, would be unable to make use of the

11 assistance provided under subparagraph

12 (A).

13 ‘‘(ii) PERIOD OF ASSISTANCE.—The

14 President may not provide direct assistance

15 under clause (i) with respect to a major dis16 aster after the expiration of the 18-month

17 period beginning on the date of the declara18 tion of the major disaster by the President,

19 except that the President may extend such

20 period if the President determines that due

21 to extraordinary circumstances an extension

22 would be in the public interest.

23 ‘‘(iii) COLLECTION OF RENTAL

24 CHARGES.—After the expiration of the 18-

25 month period referred to in clause (ii), the
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1 President may charge fair market rent for

2 the accommodation being provided.

3 ‘‘(2) REPAIRS.—The President may provide fi4 nancial assistance for the repair of owner-occupied

5 private residences, utilities, and residential infra6 structure (such as private access routes) damaged by

7 a major disaster to a habitable or functioning condi8 tion. A recipient of assistance provided under this

9 paragraph need not show that the assistance can be

10 met through other means, except insurance proceeds,

11 if the assistance is used for emergency repairs to

12 make a private residence habitable and does not ex13 ceed $5,000 (based on fiscal year 1998 constant dol14 lars).

15 ‘‘(3) REPLACEMENT.—The President may pro16 vide financial assistance for the replacement of

17 owner-occupied private residences damaged by a

18 major disaster. Assistance provided under this para19 graph shall not exceed $10,000 (based on fiscal year

20 1998 constant dollars). The President may not waive

21 any provision of Federal law requiring the purchase

22 of flood insurance as a condition for the receipt of

23 Federal disaster assistance with respect to assistance

24 provided under this paragraph.
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1 ‘‘(4) PERMANENT HOUSING CONSTRUCTION.—The

2 President may provide financial assistance or direct

3 assistance under this section to individuals or house4 holds to construct permanent housing in insular areas

5 outside the continental United States and other re6 mote locations in cases in which—

7 ‘‘(A) no alternative housing resources are

8 available; and

9 ‘‘(B) the types of temporary housing assist10 ance described in paragraph (1) are unavailable,

11 infeasible, or not cost effective.

12 ‘‘(d) TERMS AND CONDITIONS RELATING TO HOUSING

13 ASSISTANCE.—

14 ‘‘(1) SITES.—Any readily fabricated dwelling

15 provided under this section shall, whenever possible,

16 be located on a site complete with utilities, and shall

17 be provided by the State or local government, by the

18 owner of the site, or by the occupant who was dis19 placed by the major disaster. Readily fabricated

20 dwellings may be located on sites provided by the

21 President if the President determines that such sites

22 would be more economical or accessible.

23 ‘‘(2) DISPOSAL OF UNITS.—

24 ‘‘(A) SALE TO OCCUPANTS.—
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1 ‘‘(i) IN GENERAL.—Notwithstanding

2 any other provision of law, a temporary

3 housing unit purchased under this section

4 by the President for the purposes of housing

5 disaster victims may be sold directly to the

6 individual or household who is occupying

7 the unit if the individual or household needs

8 permanent housing.

9 ‘‘(ii) SALES PRICE.—Sales of tem10 porary housing units under clause (i) shall

11 be accomplished at prices that are fair and

12 equitable.

13 ‘‘(iii) DEPOSIT OF PROCEEDS.—Not14 withstanding any other provision of law,

15 the proceeds of a sale under clause (i) shall

16 be deposited into the appropriate Disaster

17 Relief Fund account.

18 ‘‘(iv) USE OF GSA SERVICES.—The

19 President may use the services of the Gen20 eral Services Administration to accomplish

21 a sale under clause (i).

22 ‘‘(B) OTHER METHODS OF DISPOSAL.—

23 ‘‘(i) SALE.—If not disposed of under

24 subparagraph (A), a temporary housing

25 unit purchased by the President for the pur-
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1 poses of housing disaster victims may be re2 sold.

3 ‘‘(ii) DISPOSAL TO GOVERNMENTS AND

4 VOLUNTARY ORGANIZATIONS.—A temporary

5 housing unit described in clause (i) may

6 also be sold, transferred, donated, or other7 wise made available directly to a State or

8 other governmental entity or to a voluntary

9 organization for the sole purpose of provid10 ing temporary housing to disaster victims

11 in major disasters and emergencies if, as a

12 condition of such sale, transfer, or donation,

13 the State, other governmental agency, or

14 voluntary organization agrees to comply

15 with the nondiscrimination provisions of

16 section 308 and to obtain and maintain

17 hazard and flood insurance on the housing

18 unit.

19 ‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER

20 NEEDS.—

21 ‘‘(1) MEDICAL, DENTAL, AND FUNERAL EX22 PENSES.—The President, in consultation with the

23 Governor of the affected State, may provide financial

24 assistance under this section to an individual or

25 household adversely affected by a major disaster to
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1 meet disaster-related medical, dental, and funeral ex2 penses.

3 ‘‘(2) PERSONAL PROPERTY, TRANSPORTATION,

4 AND OTHER EXPENSES.—The President, in consulta5 tion with the Governor of the affected State, may pro6 vide financial assistance under this section to an in7 dividual or household described in paragraph (1) to

8 address personal property, transportation, and other

9 necessary expenses or serious needs resulting from the

10 major disaster.

11 ‘‘(f) STATE ROLE.—The President shall provide for the

12 substantial and ongoing involvement of the affected State

13 in administering the assistance under this section.

14 ‘‘(g) MAXIMUM AMOUNT OF ASSISTANCE.—No individ15 ual or household shall receive financial assistance greater

16 than $25,000 under this section with respect to a single

17 major disaster. Such limit shall be adjusted annually to re18 flect changes in the Consumer Price Index for all Urban

19 Consumers published by the Department of Labor.

20 ‘‘(h) ISSUANCE OF REGULATIONS.—The President

21 shall issue rules and regulations to carry out the program,

22 including criteria, standards, and procedures for determin23 ing eligibility for assistance.’’.
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1 (b) CONFORMING AMENDMENT.—Section 502(a)(6) (42

2 U.S.C. 5192(a)(6)) is amended by striking ‘‘temporary

3 housing’’.

4 (c) ELIMINATION OF INDIVIDUAL AND FAMILY GRANT

5 PROGRAMS.—Title IV (42 U.S.C. 5170–5189a) is amended

6 by striking section 411 (42 U.S.C. 5178).

7 (d) EFFECTIVE DATE.—The amendments made by this

8 section shall take effect on the 545th day following the date

9 of enactment of this Act.

10 SEC. 204. REPEALS.

11 (a) COMMUNITY DISASTER LOANS.—Section 417 (42

12 U.S.C. 5184) is repealed.

13 (b) SIMPLIFIED PROCEDURE.—Section 422 (42 U.S.C.

14 5189) is repealed.

15 SEC. 205. STATE ADMINISTRATION OF HAZARD MITIGATION

16 PROGRAM.

17 Section 404 (42 U.S.C. 5170c) is amended by adding

18 at the end the following:

19 ‘‘(c) PROGRAM ADMINISTRATION BY STATES.—

20 ‘‘(1) IN GENERAL.—A State desiring to admin21 ister the hazard mitigation assistance program estab22 lished by this section with respect to hazard mitiga23 tion assistance in the State may submit to the Presi24 dent an application for the delegation of such author25 ity.
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1 ‘‘(2) CRITERIA.—The President, in consultation

2 with States and local governments, shall establish cri3 teria for the approval of applications submitted under

4 paragraph (1). The criteria shall include, at a mini5 mum, the following:

6 ‘‘(A) The demonstrated ability of the State

7 to manage the grant program under this section.

8 ‘‘(B) Submission of the plan required under

9 section 201(c).

10 ‘‘(C) A demonstrated commitment to miti11 gation activities.

12 ‘‘(3) APPROVAL.—The President shall approve

13 an application submitted under paragraph (1) that

14 meets the criteria established under paragraph (2).

15 ‘‘(4) WITHDRAWAL OF APPROVAL.—If, after ap16 proving an application of a State submitted under

17 paragraph (1), the President determines that the

18 State is not administering the hazard mitigation as19 sistance program established by this section in a

20 manner satisfactory to the President, the President

21 shall withdraw such approval.

22 ‘‘(5) AUDITS.—The President shall provide for

23 periodic audits of the hazard mitigation assistance

24 programs administered by States under this sub25 section.’’.
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1 SEC. 206. STATE ADMINISTRATION OF DAMAGED FACILI2 TIES PROGRAM.

3 (a) PILOT PROGRAM.—In cooperation with States and

4 local governments and in coordination with efforts to

5 streamline the delivery of disaster relief assistance, the

6 President shall conduct a pilot program for the purpose of

7 determining the desirability of State administration of

8 parts of the assistance program established by section 406

9 of the Robert T. Stafford Disaster Relief and Emergency

10 Assistance Act (42 U.S.C. 5172).

11 (b) STATE PARTICIPATION.—

12 (1) CRITERIA.—The President may establish cri13 teria in order to ensure the appropriate implementa14 tion of the pilot program under subsection (a).

15 (2) MINIMUM NUMBER OF STATES.—The Presi16 dent shall conduct the pilot program under subsection

17 (a) in at least 2 States.

18 (c) REPORT.—Not later than 3 years after the date of

19 enactment of this Act, the President shall transmit to Con20 gress a report describing the results of the pilot program

21 conducted under subsection (a), including identifying any

22 administrative or financial benefits. Such report shall also

23 include recommendations on the conditions, if any, under

24 which States should be allowed the option to administer

25 parts of the assistance program under section 406 of the
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1 Robert T. Stafford Disaster Relief and Emergency Assist2 ance Act (42 U.S.C. 5172).

3 SEC. 207. STUDY REGARDING COST REDUCTION.

4 Not later than 3 years after the date of enactment of

5 this Act, the Comptroller General of the United States shall

6 conduct a study to estimate the reduction in Federal disas7 ter assistance that has resulted and is likely to result from

8 the enactment of this Act.

9 SEC. 208. REPORT ON ASSISTANCE TO RURAL COMMU10 NITIES.

11 Not later than 180 days after the date of enactment

12 of this Act, the Director of the Federal Emergency Manage13 ment Agency shall prepare and transmit to Congress a re14 port on methods and procedures that the Director rec15 ommends to accelerate the provision of Federal disaster as16 sistance under the Robert T. Stafford Disaster Relief and

17 Emergency Assistance Act (42 U.S.C. 5121 et seq.) to rural

18 communities.

19 SEC. 209. STUDY REGARDING INSURANCE FOR PUBLIC IN20 FRASTRUCTURE.

21 The Comptroller General of the United States shall

22 conduct a study to determine the current and future ex23 pected availability of disaster insurance for public infra24 structure eligible for assistance under section 406 of the
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1 Robert T. Stafford Disaster Relief and Emergency Assist2 ance Act (42 U.S.C. 5170).

3 TITLE III—MISCELLANEOUS

4 SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.

5 The first section (42 U.S.C. 5121 note) is amended to

6 read as follows:

7 ‘‘SECTION 1. SHORT TITLE.

8 ‘‘This Act may be cited as the ‘Robert T. Stafford Dis9 aster Relief and Emergency Assistance Act’.’’.

10 SEC. 302. DEFINITION OF STATE.

11 Section 102 (42 U.S.C. 5122) is amended in each of

12 paragraphs (3) and (4) by striking ‘‘the Northern’’ and all

13 that follows through ‘‘Pacific Islands’’ and inserting ‘‘and

14 the Commonwealth of the Northern Mariana Islands’’.

15 SEC. 303. FIRE SUPPRESSION GRANTS.

16 Section 420 (42 U.S.C. 5187) is amended by inserting

17 ‘‘and local government’’ after ‘‘State’’.