I

106TH CONGRESS

1ST SESSION H. R. 533

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

Act to authorize programs 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 3, 1999

Mr. BOEHLERT (for himself and Mr. BORSKI) introduced the following bill;

which was referred to the Committee on Transportation and Infrastructure

A BILL

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

predisaster mitigation, to streamline the administration

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

5 Act of 1999’’.
2

•HR 533 IH

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

2 RELIEF AND EMERGENCY ASSISTANCE ACT.

3 Except as otherwise specifically provided, whenever in

4 this Act an amendment or repeal is expressed in terms

5 of an amendment to, or repeal of, a section or other provi6 sion of law, the reference shall be considered to be made

7 to a section or other provision of the Robert T. Stafford

8 Disaster Relief and Emergency Assistance Act (42 U.S.C.

9 5121 et seq.).

10 TITLE I—PREDISASTER HAZARD

11 MITIGATION

12 SEC. 101. FINDINGS AND PURPOSE.

13 (a) FINDINGS.—Congress finds that—

14 (1) greater emphasis needs to be placed on

15 identifying and assessing the risks to State and local

16 communities and implementing adequate measures

17 to reduce losses from natural disasters and to ensure

18 that critical facilities and public infrastructure will

19 continue to function after a disaster;

20 (2) expenditures for post-disaster assistance are

21 increasing without commensurate reduction in the

22 likelihood of future losses from such natural disas23 ters;

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

25 funds under the Robert T. Stafford Disaster Relief
3

•HR 533 IH

1 and Emergency Assistance Act should be to imple2 ment predisaster activities at the local level; and

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

4 awareness and education, technical assistance, and

5 demonstrated Federal support, States and local com6 munities will be able to increase their capabilities to

7 form effective community-based partnerships for

8 mitigation purposes, implement effective natural dis9 aster mitigation measures that reduce the risk of fu10 ture damage, hardship, and suffering, ensure contin11 ued functioning of critical facilities and public infra12 structure, leverage additional non-Federal resources

13 into meeting disaster resistance goals, and make

14 commitments to long-term mitigation efforts in new

15 and existing structures.

16 (b) PURPOSE.—It is the purpose of this title to estab17 lish a predisaster hazard mitigation program that—

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

19 suffering, economic disruption, and disaster assist20 ance costs resulting from natural hazards; and

21 (2) provides a source of predisaster hazard

22 mitigation funding that will assist States and local

23 governments in implementing effective mitigation

24 measures that are designed to ensure the continued
4

•HR 533 IH

1 functioning of critical facilities and public infrastruc2 ture after a natural disaster.

3 SEC. 102. STATE MITIGATION PROGRAM.

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

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

6 (1);

7 (2) by striking the period at the end of para8 graph (2) and inserting ‘‘; and’’; and

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

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

11 local governments and consistent with section 409, a

12 comprehensive and detailed State program for miti13 gating against emergencies and major disasters, in14 cluding provisions for prioritizing mitigation meas15 ures.’’.

16 SEC. 103. DISASTER ASSISTANCE PLANS.

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

18 read as follows:

19 ‘‘(d) GRANTS FOR DISASTER ASSISTANCE AND HAZ20 ARD IDENTIFICATION.—The President is authorized to

21 make grants for—

22 ‘‘(1) not to exceed 50 percent of the cost of im23 proving, maintaining, and updating State disaster

24 assistance plans including, consistent with section

25 409, evaluation of natural hazards and development
5

•HR 533 IH

1 of the programs and actions required to mitigate

2 such hazards; and

3 ‘‘(2) the development and application of im4 proved floodplain mapping technologies that can be

5 used by Federal, State, and local governments and

6 that the President determines will likely result in

7 substantial savings over current floodplain mapping

8 methods.’’.

9 SEC. 104. PREDISASTER HAZARD MITIGATION.

10 Title II (42 U.S.C. 5131–5132) is amended by add11 ing at the end the following:

12 ‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.

13 ‘‘(a) GENERAL AUTHORITY.—The President may es14 tablish a program to provide financial assistance to States

15 and local governments for the purpose of undertaking

16 predisaster hazard mitigation activities that are cost effec17 tive and substantially reduce the risk of future damage,

18 hardship, or suffering from a major disaster.

19 ‘‘(b) PURPOSE OF ASSISTANCE.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), a State or local government that receives

22 financial assistance under this section shall use the

23 assistance for funding activities that are cost effec24 tive and substantially reduce the risk of future dam25 age, hardship, or suffering from a major disaster.
6

•HR 533 IH

1 ‘‘(2) DISSEMINATION.—The State or local gov2 ernment may use not more than 10 percent of finan3 cial assistance it receives under this section in a fis4 cal year for funding activities to disseminate infor5 mation regarding cost effective mitigation tech6 nologies (such as preferred construction practices

7 and materials), including establishing and maintain8 ing centers for protection against natural disasters

9 to carry out such dissemination.

10 ‘‘(c) ALLOCATION OF FUNDS.—The amount of finan11 cial assistance to be made available to a State, including

12 amounts made available to local governments of such

13 State, under this section in a fiscal year shall—

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

15 1.0 percent of the total funds appropriated to carry

16 out this section for such fiscal year; but

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

18 ‘‘(d) CRITERIA.—Subject to the limitations of sub19 sections (c) and (e), in determining whether to provide as20 sistance to a State or local government under this section

21 and the amount of such assistance, the President shall

22 consider the following criteria:

23 ‘‘(1) The clear identification of prioritized cost24 effective mitigation activities that produce meaning25 ful and definable outcomes.
7

•HR 533 IH

1 ‘‘(2) If the State has submitted a mitigation

2 program in cooperation with local governments

3 under section 201(c), the degree to which the activi4 ties identified in paragraph (1) are consistent with

5 the State mitigation program.

6 ‘‘(3) The opportunity to fund activities that

7 maximize net benefits to society.

8 ‘‘(4) The ability of the State or local govern9 ment to fund mitigation activities.

10 ‘‘(5) The extent to which assistance will fund

11 mitigation activities in small impoverished commu12 nities.

13 ‘‘(6) The level of interest by the private sector

14 to enter into a partnership to promote mitigation.

15 ‘‘(7) Such other criteria as the President estab16 lishes in consultation with State and local govern17 ments.

18 ‘‘(e) STATE NOMINATIONS.—

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

20 may recommend to the President not less than 5

21 local governments to receive assistance under this

22 section. The recommendations shall be submitted to

23 the President not later than January 1 of calendar

24 year 1999 and each calendar year thereafter or such

25 later date in the calendar year as the President may
8

•HR 533 IH

1 establish. In making such recommendations, the

2 Governors shall consider the criteria identified in

3 subsection (d).

4 ‘‘(2) USE.—

5 ‘‘(A) GENERAL RULE.—In providing as6 sistance to local governments under this sec7 tion, the President shall select from local gov8 ernments recommended by the Governors under

9 this subsection.

10 ‘‘(B) WAIVER.—Upon request of a local

11 government, the President may waive the limi12 tation in subparagraph (A) if the President de13 termines that extraordinary circumstances jus14 tify the waiver and that granting the waiver will

15 further the purpose of this section.

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

17 Governor of a State fails to submit recommendations

18 under this subsection in a timely manner, the Presi19 dent may select, subject to the criteria in subsection

20 (d), any local governments of the State to receive as21 sistance under this section.

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

23 purpose of this section, the term ‘small impoverished com24 munities’ means communities of 3,000 or fewer individuals

25 that are economically disadvantaged, as determined by the
9

•HR 533 IH

1 State in which the community is located and based on cri2 teria established by the President.

3 ‘‘(g) FEDERAL SHARE.—Financial assistance pro4 vided under this section may contribute up to 75 percent

5 of the total cost of mitigation activities approved by the

6 President; except that the President may contribute up to

7 90 percent of the total cost of mitigation activities in small

8 impoverished communities.

9 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

10 is authorized to be appropriated to carry out this section

11 $50,000,000 for fiscal year 1998, $70,000,000 for fiscal

12 year 1999, and $80,000,000 for fiscal year 2000.

13 ‘‘(i) AUTHORIZATION OF SECTION 404 FUNDS.—Ef14 fective October 1, 1999, in addition to amounts appro15 priated under subsection (h), the President may use, to

16 carry out this section, funds that are appropriated to carry

17 out section 404 for post-disaster mitigation activities that

18 have not been obligated within 30 months of the disaster

19 declaration upon which the funding availability is based.

20 ‘‘(j) REPORT ON FEDERAL AND STATE ADMINISTRA21 TION.—Not later than 18 months after the date of enact22 ment of the Disaster Mitigation Act of 1999, the Presi23 dent, in consultation with State and local governments,

24 shall transmit to Congress a report evaluating efforts to

25 implement this section and recommending a process for
10

•HR 533 IH

1 transferring greater authority and responsibility for ad2 ministering the assistance program authorized by this sec3 tion to capable States.’’.

4 SEC. 105. INTERAGENCY TASK FORCE.

5 The President shall establish an interagency task

6 force for the purpose of coordinating the implementation

7 of the predisaster hazard mitigation program authorized

8 by section 203 of the Robert T. Stafford Disaster Relief

9 and Emergency Assistance Act. The Director of the Fed10 eral Emergency Management Agency shall chair such task

11 force.

12 SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION

13 COSTS.

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

15 5170c(a)) is amended by striking ‘‘15 percent’’ and insert16 ing ‘‘20 percent’’.

17 (b) APPLICABILITY.—The amendment made by sub18 section (a) shall apply to major disasters declared under

19 the Robert T. Stafford Disaster Relief Act and Emergency

20 Assistance Act after January 1, 1997.

21 SEC. 107. CONFORMING AMENDMENT.

22 The heading for title II is amended to read as follows:
11

•HR 533 IH

1 ‘‘TITLE II—DISASTER PREPARED2 NESS AND MITIGATION AS3 SISTANCE’’.

4 TITLE II—STREAMLINING AND

5 COST REDUCTION

6 SEC. 201. MANAGEMENT COSTS.

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

8 is amended by adding at the end the following:

9 ‘‘SEC. 322. MANAGEMENT COSTS.

10 ‘‘(a) IN GENERAL.—Notwithstanding any other pro11 vision of law (including any administrative rule or guid12 ance), the President shall establish by rule management

13 cost rates for grantees and subgrantees. Such rates shall

14 be used to determine contributions under this Act for

15 management costs.

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

17 costs include indirect costs, administrative expenses, asso18 ciated expenses, and any other expenses not directly

19 chargeable to a specific project under a major disaster,

20 emergency, or emergency preparedness activity or meas21 ure. Such costs include the necessary costs of requesting,

22 obtaining, and administering Federal assistance and costs

23 incurred by a State for preparation of damage survey re24 ports, final inspection reports, project applications, final

25 audits, and related field inspections by State employees,
12

•HR 533 IH

1 including overtime pay and per diem and travel expenses

2 of such employees, but not including pay for regular time

3 of such employees.

4 ‘‘(c) REVIEW.—The President shall review the man5 agement cost rates established under subsection (a) not

6 later than 3 years after the date of establishment of such

7 rates and periodically thereafter.’’.

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

9 Stafford Disaster Relief and Emergency Assistance Act

10 (as added by subsection (a) of this section) shall apply

11 as follows:

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

13 shall apply to major disasters declared under such

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

15 Until the date on which the President establishes the

16 management cost rates under such subsection, sec17 tion 406(f) shall be used for establishing such rates.

18 (2) Subsection (c) of such section 322 shall

19 apply to major disasters declared under such Act on

20 or after the date on which the President establishes

21 such rates under subsection (a) of such section 322.

22 SEC. 202. ASSISTANCE TO REPAIR, RESTORE, RECON23 STRUCT, OR REPLACE DAMAGED FACILITIES.

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

25 5172(a)) is amended to read as follows:
13

•HR 533 IH

1 ‘‘(a) CONTRIBUTIONS.—

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

3 contributions—

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

5 repair, restoration, reconstruction, or replace6 ment of a public facility which is damaged or

7 destroyed by a major disaster and for associ8 ated expenses incurred by such government;

9 and

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

11 who owns or operates a private nonprofit facil12 ity damaged or destroyed by a major disaster

13 for the repair, restoration, reconstruction, or re14 placement of such facility and for associated ex15 penses incurred by such person.

16 ‘‘(2) CONDITIONS FOR ASSISTANCE TO PRIVATE

17 NONPROFIT FACILITIES.—The President may make

18 contributions to a private nonprofit facility under

19 paragraph (1)(B) only if the owner or operator of

20 the facility—

21 ‘‘(A) has applied for a disaster loan under

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

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

24 ‘‘(B)(i) has been determined to be ineli25 gible for such a loan; or
14

•HR 533 IH

1 ‘‘(ii) has obtained such a loan in the maxi2 mum amount for which the Small Business Ad3 ministration determines the facility is eligible.’’.

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

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

6 ‘‘(b) MINIMUM FEDERAL SHARE.—The Federal

7 share of assistance under this section shall be not less

8 than 75 percent of the eligible cost of repair, restoration,

9 reconstruction, or replacement carried out under this sec10 tion.’’.

11 (c) LARGE IN-LIEU CONTRIBUTIONS.—Section

12 406(c) (42 U.S.C. 5172(c)) is amended to read as follows:

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

14 ‘‘(1) FOR PUBLIC FACILITIES.—

15 ‘‘(A) IN GENERAL.—In any case in which

16 a State or local government determines that the

17 public welfare would not be best served by re18 pairing, restoring, reconstructing, or replacing

19 any public facility owned or controlled by such

20 State or local government, the State or local

21 government may elect to receive, in lieu of a

22 contribution under subsection (a)(1)(A), a con23 tribution of 75 percent of the Federal share of

24 the Federal estimate of the cost of repairing,
15

•HR 533 IH

1 restoring, reconstructing, or replacing such fa2 cility and of management expenses.

3 ‘‘(B) USE OF FUNDS.—Funds contributed

4 to a State or local government under this para5 graph may be used to repair, restore, or expand

6 other selected public facilities, to construct new

7 facilities, or to fund hazard mitigation measures

8 which the State or local government determines

9 to be necessary to meet a need for govern10 mental services and functions in the area af11 fected by the major disaster.

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

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

14 person who owns or operates a private nonprofit

15 facility determines that the public welfare would

16 not be best served by repairing, restoring, re17 constructing, or replacing such facility, such

18 person may elect to receive, in lieu of a con19 tribution under subsection (a)(1)(B), a con20 tribution of 75 percent of the Federal share of

21 the Federal estimate of the cost of repairing,

22 restoring, reconstructing, or replacing such fa23 cility and of management expenses.

24 ‘‘(B) USE OF FUNDS.—Funds contributed

25 to a person under this paragraph may be used
16

•HR 533 IH

1 to repair, restore, or expand other selected pri2 vate nonprofit facilities owned or operated by

3 the person, to construct new private nonprofit

4 facilities to be owned or operated by the person,

5 or to fund hazard mitigation measures that the

6 person determines to be necessary to meet a

7 need for its services and functions in the area

8 affected by the major disaster.

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

10 President shall modify the Federal share of the cost

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

12 President determines an alternative cost share will

13 likely reduce the total amount of Federal assistance

14 provided under this section. The Federal cost share

15 for purposes of paragraphs (1) and (2) shall not ex16 ceed 90 percent and shall not be less than 50 per17 cent.’’.

18 (d) ELIGIBLE COST.—

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

20 5172(e)) is amended to read as follows:

21 ‘‘(e) ELIGIBLE COST.—

22 ‘‘(1) IN GENERAL.—For the purposes of this

23 section, the estimate of the cost of repairing, restor24 ing, reconstructing, or replacing a public facility or

25 private nonprofit facility on the basis of the design
17

•HR 533 IH

1 of such facility as it existed immediately before the

2 major disaster and in conformity with current appli3 cable codes, specifications, and standards (including

4 floodplain management and hazard mitigation cri5 teria required by the President or by the Coastal

6 Barrier Resources Act (16 U.S.C. 3501 et seq.))

7 shall be treated as the eligible cost of such repair,

8 restoration, reconstruction, or replacement. Subject

9 to paragraph (2), the President shall use the cost

10 estimation procedures developed under paragraph

11 (3) to make the estimate under this paragraph.

12 ‘‘(2) MODIFICATION OF ELIGIBLE COST.—In

13 the event the actual cost of repairing, restoring, re14 constructing, or replacing a facility under this sec15 tion is more than 120 percent or less than 80 per16 cent of the cost estimated under paragraph (1), the

17 President may determine that the eligible cost be the

18 actual cost of such repair, restoration, reconstruc19 tion, or replacement. The government or person re20 ceiving assistance under this section shall reimburse

21 the President for the portion of such assistance that

22 exceeds the eligible cost of such repair, restoration,

23 reconstruction, or replacement.

24 ‘‘(3) EXPERT PANEL.—Not later than 18

25 months after the date of enactment of the Disaster
18

•HR 533 IH

1 Mitigation Act of 1999, the President, acting

2 through the Director of the Federal Emergency

3 Management Agency, shall establish an expert panel,

4 including representatives from the construction in5 dustry, to develop procedures for estimating the cost

6 of repairing, restoring, reconstructing, or replacing a

7 facility consistent with industry practices.

8 ‘‘(4) SPECIAL RULE.—In any case in which the

9 facility being repaired, restored, reconstructed, or re10 placed under this section was under construction on

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

12 restoring, reconstructing, or replacing such facility

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

14 costs which, under the contract for such construc15 tion, are the owner’s responsibility and not the con16 tractor’s responsibility.’’.

17 (2) EFFECTIVE DATE.—The amendment made

18 by paragraph (1) shall take effect on the date of en19 actment of this Act; except that paragraph (1) of

20 section 406(e) of the Robert T. Stafford Disaster

21 Relief and Emergency Assistance Act (as amended

22 by paragraph (1) of this subsection) shall take effect

23 on the date that the procedures developed under

24 paragraph (3) of such section take effect.

25 (e) ASSOCIATED EXPENSES.—
19

•HR 533 IH

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

2 4172) is amended by striking subsection (f).

3 (2) OTHER ELIGIBLE COSTS.—Section 406(e)

4 (42 U.S.C. 5172(f)), as amended by subsection (d)

5 of this section, is amended by adding at the end the

6 following:

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

8 this section, other eligible costs include the following:

9 ‘‘(A) COSTS OF NATIONAL GUARD.—The

10 cost of mobilizing and employing the National

11 Guard for performance of eligible work.

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

13 of using prison labor to perform eligible work,

14 including wages actually paid, transportation to

15 a worksite, and extraordinary costs of guards,

16 food, and lodging.

17 ‘‘(C) OTHER LABOR COSTS.—Base and

18 overtime wages for an applicant’s employees

19 and extra hires performing eligible work plus

20 fringe benefits on such wages to the extent that

21 such benefits were being paid before the disas22 ter.’’.

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

24 shall take effect on the date on which the President

25 establishes management cost rates under section
20

•HR 533 IH

1 322(a) of the Robert T. Stafford Disaster Relief and

2 Emergency Assistance Act (as added by section

3 201(a) of this Act). The amendment made by para4 graph (1) shall only apply to disasters declared by

5 the President under such Act after the date on

6 which the President establishes such cost rates.

7 SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND

8 HOUSEHOLDS.

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

10 amended to read as follows:

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

12 HOUSEHOLDS.

13 ‘‘(a) GENERAL AUTHORITY.—Subject to the require14 ments of this section, the President, in consultation with

15 the Governor of the affected State, may provide financial

16 assistance, and, if necessary, direct services, to disaster

17 victims who as a direct result of a major disaster have

18 necessary expenses and serious needs where such victims

19 are unable to meet such expenses or needs through other

20 means.

21 ‘‘(b) HOUSING ASSISTANCE.—

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

23 financial or other assistance under this section to in24 dividuals and families to respond to the disaster-re25 lated housing needs of those who are displaced from
21

•HR 533 IH

1 their predisaster primary residences or whose

2 predisaster primary residences are rendered un3 inhabitable as a result of damage caused by a major

4 disaster.

5 ‘‘(2) DETERMINATION OF APPROPRIATE TYPES

6 OF ASSISTANCE.—The President shall determine ap7 propriate types of housing assistance to be provided

8 to disaster victims under this section based upon

9 considerations of cost effectiveness, convenience to

10 disaster victims, and such other factors as the Presi11 dent may consider appropriate. One or more types of

12 housing assistance may be made available, based on

13 the suitability and availability of the types of assist14 ance, to meet the needs of disaster victims in the

15 particular disaster situation.

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

17 ‘‘(1) TEMPORARY HOUSING.—

18 ‘‘(A) FINANCIAL ASSISTANCE.—

19 ‘‘(i) IN GENERAL.—The President

20 may provide financial assistance under this

21 section to individuals or households to rent

22 alternate housing accommodations, existing

23 rental units, manufactured housing, rec24 reational vehicles, or other readily fab25 ricated dwellings.
22

•HR 533 IH

1 ‘‘(ii) AMOUNT.—The amount of as2 sistance under clause (i) shall be based on

3 the fair market rent for the accommoda4 tion being furnished plus the cost of any

5 transportation, utility hookups, or unit in6 stallation not being directly provided by

7 the President.

8 ‘‘(B) DIRECT ASSISTANCE.—

9 ‘‘(i) IN GENERAL.—The President

10 may also directly provide under this section

11 housing units, acquired by purchase or

12 lease, to individuals or households who, be13 cause of a lack of available housing re14 sources, would be unable to make use of

15 the assistance provided under subpara16 graph (A).

17 ‘‘(ii) PERIOD OF ASSISTANCE.—The

18 President may not provide direct assist19 ance under clause (i) with respect to a

20 major disaster after the expiration of the

21 18-month period beginning on the date of

22 the declaration of the major disaster by the

23 President, except that the President may

24 extend such period if the President deter25 mines that due to extraordinary cir-
23

•HR 533 IH

1 cumstances an extension would be in the

2 public interest.

3 ‘‘(iii) COLLECTION OF RENTAL

4 CHARGES.—After the expiration of the 18-

5 month period referred to in clause (ii), the

6 President may charge fair market rent for

7 the accommodation being provided.

8 ‘‘(2) REPAIRS.—The President may provide fi9 nancial assistance for the repair of owner-occupied

10 private residences, utilities, and residential infra11 structure (such as private access routes) damaged by

12 a major disaster to a habitable or functioning condi13 tion. A recipient of assistance provided under this

14 paragraph need not show that the assistance can be

15 met through other means, except insurance proceeds,

16 if the assistance is used for emergency repairs to

17 make a private residence habitable and does not ex18 ceed $5,000 (based on fiscal year 1998 constant dol19 lars).

20 ‘‘(3) REPLACEMENT.—The President may pro21 vide financial assistance for the replacement of

22 owner-occupied private residences damaged by a

23 major disaster. Assistance provided under this para24 graph shall not exceed $10,000 (based on fiscal year

25 1998 constant dollars). The President may not waive
24

•HR 533 IH

1 any provision of Federal law requiring the purchase

2 of flood insurance as a condition for the receipt of

3 Federal disaster assistance with respect to assist4 ance provided under this paragraph.

5 ‘‘(4) PERMANENT HOUSING CONSTRUCTION.—

6 The President may provide financial assistance or

7 direct assistance under this section to individuals or

8 households to construct permanent housing in insu9 lar areas outside the continental United States and

10 other remote locations in cases in which—

11 ‘‘(A) no alternative housing resources are

12 available; and

13 ‘‘(B) the types of temporary housing as14 sistance described in paragraph (1) are unavail15 able, infeasible, or not cost effective.

16 ‘‘(d) TERMS AND CONDITIONS RELATING TO HOUS17 ING ASSISTANCE.—

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

19 provided under this section shall, whenever possible,

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

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

22 owner of the site, or by the occupant who was dis23 placed by the major disaster. Readily fabricated

24 dwellings may be located on sites provided by the
25

•HR 533 IH

1 President if the President determines that such sites

2 would be more economical or accessible.

3 ‘‘(2) DISPOSAL OF UNITS.—

4 ‘‘(A) SALE TO OCCUPANTS.—

5 ‘‘(i) IN GENERAL.—Notwithstanding

6 any other provision of law, a temporary

7 housing unit purchased under this section

8 by the President for the purposes of hous9 ing disaster victims may be sold directly to

10 the individual or household who is occupy11 ing the unit if the individual or household

12 needs permanent housing.

13 ‘‘(ii) SALES PRICE.—Sales of tem14 porary housing units under clause (i) shall

15 be accomplished at prices that are fair and

16 equitable.

17 ‘‘(iii) DEPOSIT OF PROCEEDS.—Not18 withstanding any other provision of law,

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

20 be deposited into the appropriate Disaster

21 Relief Fund account.

22 ‘‘(iv) USE OF GSA SERVICES.—The

23 President may use the services of the Gen24 eral Services Administration to accomplish

25 a sale under clause (i).
26

•HR 533 IH

1 ‘‘(B) OTHER METHODS OF DISPOSAL.—

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

3 subparagraph (A), a temporary housing

4 unit purchased by the President for the

5 purposes of housing disaster victims may

6 be resold.

7 ‘‘(ii) DISPOSAL TO GOVERNMENTS

8 AND VOLUNTARY ORGANIZATIONS.—A tem9 porary housing unit described in clause (i)

10 may also be sold, transferred, donated, or

11 otherwise made available directly to a

12 State or other governmental entity or to a

13 voluntary organization for the sole purpose

14 of providing temporary housing to disaster

15 victims in major disasters and emergencies

16 if, as a condition of such sale, transfer, or

17 donation, the State, other governmental

18 agency, or voluntary organization agrees to

19 comply with the nondiscrimination provi20 sions of section 308 and to obtain and

21 maintain hazard and flood insurance on

22 the housing unit.

23 ‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER

24 NEEDS.—
27

•HR 533 IH

1 ‘‘(1) MEDICAL, DENTAL, AND FUNERAL EX2 PENSES.—The President, in consultation with the

3 Governor of the affected State, may provide financial

4 assistance under this section to an individual or

5 household adversely affected by a major disaster to

6 meet disaster-related medical, dental, and funeral

7 expenses.

8 ‘‘(2) PERSONAL PROPERTY, TRANSPORTATION,

9 AND OTHER EXPENSES.—The President, in con10 sultation with the Governor of the affected State,

11 may provide financial assistance under this section

12 to an individual or household described in paragraph

13 (1) to address personal property, transportation, and

14 other necessary expenses or serious needs resulting

15 from the major disaster.

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

17 the substantial and ongoing involvement of the affected

18 State in administering the assistance under this section.

19 ‘‘(g) MAXIMUM AMOUNT OF ASSISTANCE.—No indi20 vidual or household shall receive financial assistance great21 er than $25,000 under this section with respect to a single

22 major disaster. Such limit shall be adjusted annually to

23 reflect changes in the Consumer Price Index for all Urban

24 Consumers published by the Department of Labor.
28

•HR 533 IH

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

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

3 including criteria, standards, and procedures for determin4 ing eligibility for assistance.’’.

5 (b) CONFORMING AMENDMENT.—Section 502(a)(6)

6 (42 U.S.C. 5192(a)(6)) is amended by striking ‘‘tem7 porary housing’’.

8 (c) ELIMINATION OF INDIVIDUAL AND FAMILY

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

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

11 (d) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect on the 545th day following

13 the date of enactment of this Act.

14 SEC. 204. REPEALS.

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

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

17 (b) SIMPLIFIED PROCEDURE.—Section 422 (42

18 U.S.C. 5189) is repealed.

19 SEC. 205. STATE ADMINISTRATION OF HAZARD MITIGATION

20 PROGRAM.

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

22 at the end the following:

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

24 ‘‘(1) IN GENERAL.—A State desiring to admin25 ister the hazard mitigation assistance program es-
29

•HR 533 IH

1 tablished by this section with respect to hazard miti2 gation assistance in the State may submit to the

3 President an application for the delegation of such

4 authority.

5 ‘‘(2) CRITERIA.—The President, in consultation

6 with States and local governments, shall establish

7 criteria for the approval of applications submitted

8 under paragraph (1). The criteria shall include, at a

9 minimum, the following:

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

11 to manage the grant program under this sec12 tion.

13 ‘‘(B) Submission of the plan required

14 under section 201(c).

15 ‘‘(C) A demonstrated commitment to miti16 gation activities.

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

18 an application submitted under paragraph (1) that

19 meets the criteria established under paragraph (2).

20 ‘‘(4) WITHDRAWAL OF APPROVAL.—If, after

21 approving an application of a State submitted under

22 paragraph (1), the President determines that the

23 State is not administering the hazard mitigation as24 sistance program established by this section in a
30

•HR 533 IH

1 manner satisfactory to the President, the President

2 shall withdraw such approval.

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

4 periodic audits of the hazard mitigation assistance

5 programs administered by States under this sub6 section.’’.

7 SEC. 206. STATE ADMINISTRATION OF DAMAGED FACILI8 TIES PROGRAM.

9 (a) PILOT PROGRAM.—In cooperation with States

10 and local governments and in coordination with efforts to

11 streamline the delivery of disaster relief assistance, the

12 President shall conduct a pilot program for the purpose

13 of determining the desirability of State administration of

14 parts of the assistance program established by section 406

15 of the Robert T. Stafford Disaster Relief and Emergency

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

17 (b) STATE PARTICIPATION.—

18 (1) CRITERIA.—The President may establish

19 criteria in order to ensure the appropriate implemen20 tation of the pilot program under subsection (a).

21 (2) MINIMUM NUMBER OF STATES.—The Presi22 dent shall conduct the pilot program under sub23 section (a) in at least 2 States.

24 (c) REPORT.—Not later than 4 years after the date

25 of enactment of this Act, the President shall transmit to
31

•HR 533 IH

1 Congress a report describing the results of the pilot pro2 gram conducted under subsection (a), including identify3 ing any administrative or financial benefits. Such report

4 shall also include recommendations on the conditions, if

5 any, under which States should be allowed the option to

6 administer parts of the assistance program under section

7 406 of the Robert T. Stafford Disaster Relief and Emer8 gency Assistance Act (42 U.S.C. 5172).

9 SEC. 207. STUDY REGARDING COST REDUCTION.

10 Not later than 4 years after the date of enactment

11 of this Act, the Comptroller General of the United States

12 shall conduct a study to estimate the reduction in Federal

13 disaster assistance that has resulted and is likely to result

14 from the enactment of this Act.

15 SEC. 208. STUDY REGARDING INSURANCE FOR PUBLIC IN16 FRASTRUCTURE.

17 The Comptroller General of the United States shall

18 conduct a study to determine the current and future ex19 pected availability of disaster insurance for public infra20 structure eligible for assistance under section 406 of the

21 Robert T. Stafford Disaster Relief and Emergency Assist22 ance Act (42 U.S.C. 5170).
32

•HR 533 IH

1 TITLE III—MISCELLANEOUS

2 SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.

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

4 to read as follows:

5 ‘‘SECTION 1. SHORT TITLE.

6 ‘‘This Act may be cited as the ‘Robert T. Stafford

7 Disaster Relief and Emergency Assistance Act’.’’.

8 SEC. 302. DEFINITION OF STATE.

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

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

11 all that follows through ‘‘Pacific Islands’’ and inserting

12 ‘‘and the Commonwealth of the Northern Mariana Is13 lands’’.

Æ