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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 707 Engrossed in House (EH)]

  1st Session

                               H. R. 707

_______________________________________________________________________

                                 AN ACT

     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.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                H. R. 707

_______________________________________________________________________

                                 AN ACT

 
     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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Mitigation and Cost 
Reduction Act of 1999''.

SEC. 2. AMENDMENTS TO ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY 
              ASSISTANCE ACT.

    Except as otherwise specifically provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision of law, the reference shall be 
considered to be made to a section or other provision of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
et seq.).

                 TITLE I--PREDISASTER HAZARD MITIGATION

SEC. 101. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) greater emphasis needs to be placed on identifying and 
        assessing the risks to State and local communities and 
        implementing adequate measures to reduce losses from natural 
        disasters and to ensure that critical facilities and public 
        infrastructure will continue to function after a disaster;
            (2) expenditures for post-disaster assistance are 
        increasing without commensurate reduction in the likelihood of 
        future losses from such natural disasters;
            (3) a high priority in the expenditure of Federal funds 
        under the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act should be to implement predisaster activities at 
        the local level; and
            (4) with a unified effort of economic incentives, awareness 
        and education, technical assistance, and demonstrated Federal 
        support, States and local communities will be able to increase 
        their capabilities to form effective community-based 
        partnerships for mitigation purposes, implement effective 
        natural disaster mitigation measures that reduce the risk of 
        future damage, hardship, and suffering, ensure continued 
        functioning of critical facilities and public infrastructure, 
        leverage additional non-Federal resources into meeting disaster 
        resistance goals, and make commitments to long-term mitigation 
        efforts in new and existing structures.
    (b) Purpose.--It is the purpose of this title to establish a 
predisaster hazard mitigation program that--
            (1) reduces the loss of life and property, human suffering, 
        economic disruption, and disaster assistance costs resulting 
        from natural hazards; and
            (2) provides a source of predisaster hazard mitigation 
        funding that will assist States and local governments in 
        implementing effective mitigation measures that are designed to 
        ensure the continued functioning of critical facilities and 
        public infrastructure after a natural disaster.

SEC. 102. STATE MITIGATION PROGRAM.

    Section 201(c) (42 U.S.C. 5131(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) set forth, with the ongoing cooperation of local 
        governments and consistent with section 409, a comprehensive 
        and detailed State program for mitigating against emergencies 
        and major disasters, including provisions for prioritizing 
        mitigation measures.''.

SEC. 103. DISASTER ASSISTANCE PLANS.

    Section 201(d) (42 U.S.C. 5131(d)) is amended to read as follows:
    ``(d) Grants for Disaster Assistance and Hazard Identification.--
The President is authorized to make grants for--
            ``(1) not to exceed 50 percent of the cost of improving, 
        maintaining, and updating State disaster assistance plans 
        including, consistent with section 409, evaluation of natural 
        hazards and development of the programs and actions required to 
        mitigate such hazards; and
            ``(2) the development and application of improved 
        floodplain mapping technologies that can be used by Federal, 
        State, and local governments and that the President determines 
        will likely result in substantial savings over current 
        floodplain mapping methods.''.

SEC. 104. PREDISASTER HAZARD MITIGATION.

    Title II (42 U.S.C. 5131-5132) is amended by adding at the end the 
following:

``SEC. 203. PREDISASTER HAZARD MITIGATION.

    ``(a) General Authority.--The President may establish a program to 
provide financial assistance to States and local governments for the 
purpose of undertaking predisaster hazard mitigation activities that 
are cost effective and substantially reduce the risk of future damage, 
hardship, or suffering from a major disaster.
    ``(b) Purpose of Assistance.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State or local government that receives financial assistance 
        under this section shall use the assistance for funding 
        activities that are cost effective and substantially reduce the 
        risk of future damage, hardship, or suffering from a major 
        disaster.
            ``(2) Dissemination.--The State or local government may use 
        not more than 10 percent of financial assistance it receives 
        under this section in a fiscal year for funding activities to 
        disseminate information regarding cost effective mitigation 
        technologies (such as preferred construction practices and 
        materials), including establishing and maintaining centers for 
        protection against natural disasters to carry out such 
        dissemination.
    ``(c) Allocation of Funds.--The amount of financial assistance to 
be made available to a State, including amounts made available to local 
governments of such State, under this section in a fiscal year shall--
            ``(1) not be less than the lesser of $500,000 or 1.0 
        percent of the total funds appropriated to carry out this 
        section for such fiscal year; but
            ``(2) not exceed 15 percent of such total funds.
    ``(d) Criteria.--Subject to the limitations of subsections (c) and 
(e), in determining whether to provide assistance to a State or local 
government under this section and the amount of such assistance, the 
President shall consider the following criteria:
            ``(1) The clear identification of prioritized cost-
        effective mitigation activities that produce meaningful and 
        definable outcomes.
            ``(2) If the State has submitted a mitigation program in 
        cooperation with local governments under section 201(c), the 
        degree to which the activities identified in paragraph (1) are 
        consistent with the State mitigation program.
            ``(3) The extent to which assistance will fund activities 
        that mitigate hazards evaluated under section 409.
            ``(4) The opportunity to fund activities that maximize net 
        benefits to society.
            ``(5) The ability of the State or local government to fund 
        mitigation activities.
            ``(6) The extent to which assistance will fund mitigation 
        activities in small impoverished communities.
            ``(7) The level of interest by the private sector to enter 
        into a partnership to promote mitigation.
            ``(8) Such other criteria as the President establishes in 
        consultation with State and local governments.
    ``(e) State Nominations.--
            ``(1) In general.--The Governor of each State may recommend 
        to the President not less than 5 local governments to receive 
        assistance under this section. The recommendations shall be 
        submitted to the President not later than October 1, 1999, and 
        each October 1st thereafter or such later date in the year as 
        the President may establish. In making such recommendations, 
        the Governors shall consider the criteria identified in 
        subsection (d).
            ``(2) Use.--
                    ``(A) General rule.--In providing assistance to 
                local governments under this section, the President 
                shall select from local governments recommended by the 
                Governors under this subsection.
                    ``(B) Waiver.--Upon request of a local government, 
                the President may waive the limitation in subparagraph 
                (A) if the President determines that extraordinary 
                circumstances justify the waiver and that granting the 
                waiver will further the purpose of this section.
            ``(3) Effect of failure to nominate.--If a Governor of a 
        State fails to submit recommendations under this subsection in 
        a timely manner, the President may select, subject to the 
        criteria in subsection (d), any local governments of the State 
        to receive assistance under this section.
    ``(f) Small Impoverished Communities.--For the purpose of this 
section, the term `small impoverished communities' means communities of 
3,000 or fewer individuals that are economically disadvantaged, as 
determined by the State in which the community is located and based on 
criteria established by the President.
    ``(g) Federal Share.--Financial assistance provided under this 
section may contribute up to 75 percent of the total cost of mitigation 
activities approved by the President; except that the President may 
contribute up to 90 percent of the total cost of mitigation activities 
in small impoverished communities.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 1999 
and $80,000,000 for fiscal year 2000.
    ``(i) Authorization of Section 404 Funds.--Effective October 1, 
2000, in addition to amounts appropriated under subsection (h) from 
only appropriations enacted after October 1, 2000, the President may 
use, to carry out this section, funds that are appropriated to carry 
out section 404 for post-disaster mitigation activities that have not 
been obligated within 30 months of the disaster declaration upon which 
the funding availability is based.
    ``(j) Report on Federal and State Administration.--Not later than 
18 months after the date of the enactment of the Disaster Mitigation 
and Cost Reduction Act of 1999, the President, in consultation with 
State and local governments, shall transmit to Congress a report 
evaluating efforts to implement this section and recommending a process 
for transferring greater authority and responsibility for administering 
the assistance program authorized by this section to capable States.''.

SEC. 105. INTERAGENCY TASK FORCE.

    The President shall establish an interagency task force for the 
purpose of coordinating the implementation of the predisaster hazard 
mitigation program authorized by section 203 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act. The Director of the 
Federal Emergency Management Agency shall chair such task force.

SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION COSTS.

    (a) In General.--Section 404(a) (42 U.S.C. 5170c(a)) is amended by 
striking ``15 percent'' and inserting ``20 percent''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to major disasters declared under the Robert T. Stafford Disaster 
Relief Act and Emergency Assistance Act after January 1, 1997.

SEC. 107. CONFORMING AMENDMENT.

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

     ``TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE''.

               TITLE II--STREAMLINING AND COST REDUCTION

SEC. 201. MANAGEMENT COSTS.

    (a) In General.--Title III (42 U.S.C. 5141-5164) is amended by 
adding at the end the following:

``SEC. 322. MANAGEMENT COSTS.

    ``(a) In General.--Notwithstanding any other provision of law 
(including any administrative rule or guidance), the President shall 
establish by rule management cost rates for grantees and subgrantees. 
Such rates shall be used to determine contributions under this Act for 
management costs.
    ``(b) Management Costs Defined.--Management costs include indirect 
costs, administrative expenses, associated expenses, and any other 
expenses not directly chargeable to a specific project under a major 
disaster, emergency, or emergency preparedness activity or measure. 
Such costs include the necessary costs of requesting, obtaining, and 
administering Federal assistance and costs incurred by a State for 
preparation of damage survey reports, final inspection reports, project 
applications, final audits, and related field inspections by State 
employees, including overtime pay and per diem and travel expenses of 
such employees, but not including pay for regular time of such 
employees.
    ``(c) Review.--The President shall review the management cost rates 
established under subsection (a) not later than 3 years after the date 
of establishment of such rates and periodically thereafter.''.
    (b) Applicability.--Section 322 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (as added by subsection (a) of this 
section) shall apply as follows:
            (1) Subsections (a) and (b) of such section 322 shall apply 
        to major disasters declared under such Act on or after the date 
        of the enactment of this Act. Until the date on which the 
        President establishes the management cost rates under such 
        subsection, section 406(f) shall be used for establishing such 
        rates.
            (2) Subsection (c) of such section 322 shall apply to major 
        disasters declared under such Act on or after the date on which 
        the President establishes such rates under subsection (a) of 
        such section 322.

SEC. 202. ASSISTANCE TO REPAIR, RESTORE, RECONSTRUCT, OR REPLACE 
              DAMAGED FACILITIES.

    (a) Contributions.--Section 406(a) (42 U.S.C. 5172(a)) is amended 
to read as follows:
    ``(a) Contributions.--
            ``(1) In general.--The President may make contributions--
                    ``(A) to a State or local government for the 
                repair, restoration, reconstruction, or replacement of 
                a public facility which is damaged or destroyed by a 
                major disaster and for associated expenses incurred by 
                such government; and
                    ``(B) subject to paragraph (2), to a person who 
                owns or operates a private nonprofit facility damaged 
                or destroyed by a major disaster for the repair, 
                restoration, reconstruction, or replacement of such 
                facility and for associated expenses incurred by such 
                person.
            ``(2) Conditions for assistance to private nonprofit 
        facilities.--
                    ``(A) In general.--The President may make 
                contributions to a private nonprofit facility under 
                paragraph (1)(B) only if--
                            ``(i) the facility provides critical 
                        services (as defined by the President) in the 
                        event of a major disaster; or
                            ``(ii)(I) the owner or operator of the 
                        facility has applied for a disaster loan under 
                        section 7(b) of the Small Business Act (15 
                        U.S.C. 636(b)); and
                            ``(II) has been determined to be ineligible 
                        for such a loan; or
                            ``(III) has obtained such a loan in the 
                        maximum amount for which the Small Business 
                        Administration determines the facility is 
                        eligible.
                    ``(B) Critical services defined.--In this 
                paragraph, the term `critical services' includes, but 
                is not limited to, power, water, sewer, wastewater 
                treatment, communications, and emergency medical 
                care.''.
    (b) Minimum Federal Share.--Section 406(b) (42 U.S.C. 5172(b)) is 
amended to read as follows:
    ``(b) Minimum Federal Share.--The Federal share of assistance under 
this section shall be not less than 75 percent of the eligible cost of 
repair, restoration, reconstruction, or replacement carried out under 
this section.''.
    (c) Large In-Lieu Contributions.--Section 406(c) (42 U.S.C. 
5172(c)) is amended to read as follows:
    ``(c) Large In-Lieu Contributions.--
            ``(1) For public facilities.--
                    ``(A) In general.--In any case in which a State or 
                local government determines that the public welfare 
                would not be best served by repairing, restoring, 
                reconstructing, or replacing any public facility owned 
                or controlled by such State or local government, the 
                State or local government may elect to receive, in lieu 
                of a contribution under subsection (a)(1)(A), a 
                contribution of 75 percent of the Federal share of the 
                Federal estimate of the cost of repairing, restoring, 
                reconstructing, or replacing such facility and of 
                management expenses.
                    ``(B) Areas with unstable soil.--In any case in 
                which a State or local government determines that the 
                public welfare would not be best served by repairing, 
                restoring, reconstructing, or replacing any public 
                facility owned or controlled by such State or local 
                government because soil instability in the disaster 
                area makes such repair, restoration, reconstruction, or 
                replacement infeasible, the State or local government 
                may elect to receive, in lieu of a contribution under 
                subsection (a)(1)(A), a contribution of 90 percent of 
                the Federal share of the Federal estimate of the cost 
                of repairing, restoring, reconstructing, or replacing 
                such facility and of management expenses.
                    ``(C) Use of funds.--Funds contributed to a State 
                or local government under this paragraph may be used to 
                repair, restore, or expand other selected public 
                facilities, to construct new facilities, or to fund 
                hazard mitigation measures which the State or local 
                government determines to be necessary to meet a need 
                for governmental services and functions in the area 
                affected by the major disaster.
            ``(2) For private nonprofit facilities.--
                    ``(A) In general.--In any case where a person who 
                owns or operates a private nonprofit facility 
                determines that the public welfare would not be best 
                served by repairing, restoring, reconstructing, or 
                replacing such facility, such person may elect to 
                receive, in lieu of a contribution under subsection 
                (a)(1)(B), a contribution of 75 percent of the Federal 
                share of the Federal estimate of the cost of repairing, 
                restoring, reconstructing, or replacing such facility 
                and of management expenses.
                    ``(B) Use of funds.--Funds contributed to a person 
                under this paragraph may be used to repair, restore, or 
                expand other selected private nonprofit facilities 
                owned or operated by the person, to construct new 
                private nonprofit facilities to be owned or operated by 
                the person, or to fund hazard mitigation measures that 
                the person determines to be necessary to meet a need 
                for its services and functions in the area affected by 
                the major disaster.
            ``(3) Modification of federal share.--The President shall 
        modify the Federal share of the cost estimate provided in 
        paragraphs (1) and (2) if the President determines an 
        alternative cost share will likely reduce the total amount of 
        Federal assistance provided under this section. The Federal 
        cost share for purposes of paragraphs (1) and (2) shall not 
        exceed 90 percent and shall not be less than 50 percent.''.
    (d) Eligible Cost.--
            (1) In general.--Section 406(e) (42 U.S.C. 5172(e)) is 
        amended to read as follows:
    ``(e) Eligible Cost.--
            ``(1) In general.--For the purposes of this section, the 
        estimate of the cost of repairing, restoring, reconstructing, 
        or replacing a public facility or private nonprofit facility on 
        the basis of the design of such facility as it existed 
        immediately before the major disaster and in conformity with 
        current applicable codes, specifications, and standards 
        (including floodplain management and hazard mitigation criteria 
        required by the President or by the Coastal Barrier Resources 
        Act (16 U.S.C. 3501 et seq.)) shall be treated as the eligible 
        cost of such repair, restoration, reconstruction, or 
        replacement. Subject to paragraph (2), the President shall use 
        the cost estimation procedures developed under paragraph (3) to 
        make the estimate under this paragraph.
            ``(2) Modification of eligible cost.--In the event the 
        actual cost of repairing, restoring, reconstructing, or 
        replacing a facility under this section is more than 120 
        percent or less than 80 percent of the cost estimated under 
        paragraph (1), the President may determine that the eligible 
        cost be the actual cost of such repair, restoration, 
        reconstruction, or replacement. The government or person 
        receiving assistance under this section shall reimburse the 
        President for the portion of such assistance that exceeds the 
        eligible cost of such repair, restoration, reconstruction, or 
        replacement.
            ``(3) Use of surplus funds.--In the event the actual cost 
        of repairing, restoring, reconstructing, or replacing a 
        facility under this section is less than 100 percent but not 
        less than 80 percent of the cost estimated under paragraph (1), 
        the government or person receiving assistance under this 
        section shall use any surplus funds to perform activities that 
        are cost-effective and reduce the risk of future damage, 
        hardship, or suffering from a major disaster.
            ``(4) Expert panel.--Not later than 18 months after the 
        date of the enactment of the Disaster Mitigation and Cost 
        Reduction Act of 1999, the President, acting through the 
        Director of the Federal Emergency Management Agency, shall 
        establish an expert panel, including representatives from the 
        construction industry, to develop procedures for estimating the 
        cost of repairing, restoring, reconstructing, or replacing a 
        facility consistent with industry practices.
            ``(5) Special rule.--In any case in which the facility 
        being repaired, restored, reconstructed, or replaced under this 
        section was under construction on the date of the major 
        disaster, the cost of repairing, restoring, reconstructing, or 
        replacing such facility shall include, for purposes of this 
        section, only those costs which, under the contract for such 
        construction, are the owner's responsibility and not the 
        contractor's responsibility.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act, and 
        shall only apply to funds appropriated after the date of the 
        enactment of this Act; except that paragraph (1) of section 
        406(e) of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (as amended by paragraph (1) of this subsection) 
        shall take effect on the date that the procedures developed 
        under paragraph (3) of such section take effect.
    (e) Associated Expenses.--
            (1) In general.--Section 406 (42 U.S.C. 4172) is amended by 
        striking subsection (f).
            (2) Other eligible costs.--Section 406(e) (42 U.S.C. 
        5172(e)), as amended by subsection (d) of this section, is 
        amended by adding at the end the following:
            ``(6) Other eligible costs.--For purposes of this section, 
        other eligible costs include the following:
                    ``(A) Costs of national guard.--The cost of 
                mobilizing and employing the National Guard for 
                performance of eligible work.
                    ``(B) Costs of prison labor.--The costs of using 
                prison labor to perform eligible work, including wages 
                actually paid, transportation to a worksite, and 
                extraordinary costs of guards, food, and lodging.
                    ``(C) Other labor costs.--Base and overtime wages 
                for an applicant's employees and extra hires performing 
                eligible work plus fringe benefits on such wages to the 
                extent that such benefits were being paid before the 
                disaster.''.
            (3) Effective date.--Paragraphs (1) and (2) shall take 
        effect on the date on which the President establishes 
        management cost rates under section 322(a) of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (as added 
        by section 201(a) of this Act). The amendment made by paragraph 
        (1) shall only apply to disasters declared by the President 
        under such Act after the date on which the President 
        establishes such cost rates.

SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.

    (a) In General.--Section 408 (42 U.S.C. 5174) is amended to read as 
follows:

``SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.

    ``(a) General Authority.--Subject to the requirements of this 
section, the President, in consultation with the Governor of the 
affected State, may provide financial assistance, and, if necessary, 
direct services, to disaster victims who as a direct result of a major 
disaster have necessary expenses and serious needs where such victims 
are unable to meet such expenses or needs through other means. Under 
the preceding sentence, a victim shall not be denied assistance under 
subsections (c)(1), (c)(3), or (c)(4), solely on the basis that the 
victim has not applied for or received any loan or other financial 
assistance from the Small Business Administration or any other Federal 
agency.
    ``(b) Housing Assistance.--
            ``(1) Eligibility.--The President may provide financial or 
        other assistance under this section to individuals and families 
        to respond to the disaster-related housing needs of those who 
        are displaced from their predisaster primary residences or 
        whose predisaster primary residences are rendered uninhabitable 
        as a result of damage caused by a major disaster.
            ``(2) Determination of appropriate types of assistance.--
        The President shall determine appropriate types of housing 
        assistance to be provided to disaster victims under this 
        section based upon considerations of cost effectiveness, 
        convenience to disaster victims, and such other factors as the 
        President may consider appropriate. One or more types of 
        housing assistance may be made available, based on the 
        suitability and availability of the types of assistance, to 
        meet the needs of disaster victims in the particular disaster 
        situation.
    ``(c) Types of Housing Assistance.--
            ``(1) Temporary housing.--
                    ``(A) Financial assistance.--
                            ``(i) In general.--The President may 
                        provide financial assistance under this section 
                        to individuals or households to rent alternate 
                        housing accommodations, existing rental units, 
                        manufactured housing, recreational vehicles, or 
                        other readily fabricated dwellings.
                            ``(ii) Amount.--The amount of assistance 
                        under clause (i) shall be based on the fair 
                        market rent for the accommodation being 
                        furnished plus the cost of any transportation, 
                        utility hookups, or unit installation not being 
                        directly provided by the President.
                    ``(B) Direct assistance.--
                            ``(i) In general.--The President may also 
                        directly provide under this section housing 
                        units, acquired by purchase or lease, to 
                        individuals or households who, because of a 
                        lack of available housing resources, would be 
                        unable to make use of the assistance provided 
                        under subparagraph (A).
                            ``(ii) Period of assistance.--The President 
                        may not provide direct assistance under clause 
                        (i) with respect to a major disaster after the 
                        expiration of the 18-month period beginning on 
                        the date of the declaration of the major 
                        disaster by the President, except that the 
                        President may extend such period if the 
                        President determines that due to extraordinary 
                        circumstances an extension would be in the 
                        public interest.
                            ``(iii) Collection of rental charges.--
                        After the expiration of the 18-month period 
                        referred to in clause (ii), the President may 
                        charge fair market rent for the accommodation 
                        being provided.
            ``(2) Repairs.--The President may provide financial 
        assistance for the repair of owner-occupied private residences, 
        utilities, and residential infrastructure (such as private 
        access routes) damaged by a major disaster to a habitable or 
        functioning condition. A recipient of assistance provided under 
        this paragraph need not show that the assistance can be met 
        through other means, except insurance proceeds, if the 
        assistance is used for emergency repairs to make a private 
        residence habitable and does not exceed $5,000 (based on fiscal 
        year 1998 constant dollars).
            ``(3) Replacement.--The President may provide financial 
        assistance for the replacement of owner-occupied private 
        residences damaged by a major disaster. Assistance provided 
        under this paragraph shall not exceed $10,000 (based on fiscal 
        year 1998 constant dollars). The President may not waive any 
        provision of Federal law requiring the purchase of flood 
        insurance as a condition for the receipt of Federal disaster 
        assistance with respect to assistance provided under this 
        paragraph.
            ``(4) Permanent housing construction.--The President may 
        provide financial assistance or direct assistance under this 
        section to individuals or households to construct permanent 
        housing in insular areas outside the continental United States 
        and other remote locations in cases in which--
                    ``(A) no alternative housing resources are 
                available; and
                    ``(B) the types of temporary housing assistance 
                described in paragraph (1) are unavailable, infeasible, 
                or not cost effective.
    ``(d) Terms and Conditions Relating to Housing Assistance.--
            ``(1) Sites.--Any readily fabricated dwelling provided 
        under this section shall, whenever possible, be located on a 
        site complete with utilities, and shall be provided by the 
        State or local government, by the owner of the site, or by the 
        occupant who was displaced by the major disaster. Readily 
        fabricated dwellings may be located on sites provided by the 
        President if the President determines that such sites would be 
        more economical or accessible.
            ``(2) Disposal of units.--
                    ``(A) Sale to occupants.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, a temporary housing 
                        unit purchased under this section by the 
                        President for the purposes of housing disaster 
                        victims may be sold directly to the individual 
                        or household who is occupying the unit if the 
                        individual or household needs permanent 
                        housing.
                            ``(ii) Sales price.--Sales of temporary 
                        housing units under clause (i) shall be 
                        accomplished at prices that are fair and 
                        equitable.
                            ``(iii) Deposit of proceeds.--
                        Notwithstanding any other provision of law, the 
                        proceeds of a sale under clause (i) shall be 
                        deposited into the appropriate Disaster Relief 
                        Fund account.
                            ``(iv) Use of gsa services.--The President 
                        may use the services of the General Services 
                        Administration to accomplish a sale under 
                        clause (i).
                    ``(B) Other methods of disposal.--
                            ``(i) Sale.--If not disposed of under 
                        subparagraph (A), a temporary housing unit 
                        purchased by the President for the purposes of 
                        housing disaster victims may be resold.
                            ``(ii) Disposal to governments and 
                        voluntary organizations.--A temporary housing 
                        unit described in clause (i) may also be sold, 
                        transferred, donated, or otherwise made 
                        available directly to a State or other 
                        governmental entity or to a voluntary 
                        organization for the sole purpose of providing 
                        temporary housing to disaster victims in major 
                        disasters and emergencies if, as a condition of 
                        such sale, transfer, or donation, the State, 
                        other governmental agency, or voluntary 
                        organization agrees to comply with the 
                        nondiscrimination provisions of section 308 and 
                        to obtain and maintain hazard and flood 
                        insurance on the housing unit.
    ``(e) Financial Assistance To Address Other Needs.--
            ``(1) Medical, dental, and funeral expenses.--The 
        President, in consultation with the Governor of the affected 
        State, may provide financial assistance under this section to 
        an individual or household adversely affected by a major 
        disaster to meet disaster-related medical, dental, and funeral 
        expenses.
            ``(2) Personal property, transportation, and other 
        expenses.--The President, in consultation with the Governor of 
        the affected State, may provide financial assistance under this 
        section to an individual or household described in paragraph 
        (1) to address personal property, transportation, and other 
        necessary expenses or serious needs resulting from the major 
        disaster.
    ``(f) State Role.--The President shall provide for the substantial 
and ongoing involvement of the affected State in administering the 
assistance under this section.
    ``(g) Maximum Amount of Assistance.--No individual or household 
shall receive financial assistance greater than $25,000 under this 
section with respect to a single major disaster. Such limit shall be 
adjusted annually to reflect changes in the Consumer Price Index for 
all Urban Consumers published by the Department of Labor.
    ``(h) Issuance of Regulations.--The President shall issue rules and 
regulations to carry out the program, including criteria, standards, 
and procedures for determining eligibility for assistance.''.
    (b) Conforming Amendment.--Section 502(a)(6) (42 U.S.C. 5192(a)(6)) 
is amended by striking ``temporary housing''.
    (c) Elimination of Individual and Family Grant Programs.--Title IV 
(42 U.S.C. 5170-5189a) is amended by striking section 411 (42 U.S.C. 
5178).
    (d) Effective Date.--The amendments made by this section shall take 
effect on the 545th day following the date of the enactment of this 
Act.

SEC. 204. REPEALS.

    (a) Community Disaster Loans.--Section 417 (42 U.S.C. 5184) is 
repealed.
    (b) Simplified Procedure.--Section 422 (42 U.S.C. 5189) is 
repealed.

SEC. 205. STATE ADMINISTRATION OF HAZARD MITIGATION PROGRAM.

    Section 404 (42 U.S.C. 5170c) is amended by adding at the end the 
following:
    ``(c) Program Administration by States.--
            ``(1) In general.--A State desiring to administer the 
        hazard mitigation assistance program established by this 
        section with respect to hazard mitigation assistance in the 
        State may submit to the President an application for the 
        delegation of such authority.
            ``(2) Criteria.--The President, in consultation with States 
        and local governments, shall establish criteria for the 
        approval of applications submitted under paragraph (1). The 
        criteria shall include, at a minimum, the following:
                    ``(A) The demonstrated ability of the State to 
                manage the grant program under this section.
                    ``(B) Submission of the plan required under section 
                201(c).
                    ``(C) A demonstrated commitment to mitigation 
                activities.
            ``(3) Approval.--The President shall approve an application 
        submitted under paragraph (1) that meets the criteria 
        established under paragraph (2).
            ``(4) Withdrawal of approval.--If, after approving an 
        application of a State submitted under paragraph (1), the 
        President determines that the State is not administering the 
        hazard mitigation assistance program established by this 
        section in a manner satisfactory to the President, the 
        President shall withdraw such approval.
            ``(5) Audits.--The President shall provide for periodic 
        audits of the hazard mitigation assistance programs 
        administered by States under this subsection.''.

SEC. 206. STATE ADMINISTRATION OF DAMAGED FACILITIES PROGRAM.

    (a) Pilot Program.--In cooperation with States and local 
governments and in coordination with efforts to streamline the delivery 
of disaster relief assistance, the President shall conduct a pilot 
program for the purpose of determining the desirability of State 
administration of parts of the assistance program established by 
section 406 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5172).
    (b) State Participation.--
            (1) Criteria.--The President may establish criteria in 
        order to ensure the appropriate implementation of the pilot 
        program under subsection (a).
            (2) Minimum number of states.--The President shall conduct 
        the pilot program under subsection (a) in at least 2 States.
    (c) Report.--Not later than 3 years after the date of the enactment 
of this Act, the President shall transmit to Congress a report 
describing the results of the pilot program conducted under subsection 
(a), including identifying any administrative or financial benefits. 
Such report shall also include recommendations on the conditions, if 
any, under which States should be allowed the option to administer 
parts of the assistance program under section 406 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5172).

SEC. 207. STUDY REGARDING COST REDUCTION.

    Not later than 3 years after the date of the enactment of this Act, 
the Comptroller General of the United States shall conduct a study to 
estimate the reduction in Federal disaster assistance that has resulted 
and is likely to result from the enactment of this Act.

SEC. 208. REPORT ON ASSISTANCE TO RURAL COMMUNITIES.

    Not later than 180 days after the date of the enactment of this 
Act, the Director of the Federal Emergency Management Agency shall 
prepare and transmit to Congress a report on methods and procedures 
that the Director recommends to accelerate the provision of Federal 
disaster assistance under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.) to rural communities.

SEC. 209. STUDY REGARDING INSURANCE FOR PUBLIC INFRASTRUCTURE.

    The Comptroller General of the United States shall conduct a study 
to determine the current and future expected availability of disaster 
insurance for public infrastructure eligible for assistance under 
section 406 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170).

SEC. 210. PUBLIC COMMENT REQUIREMENT.

    Title III (42 U.S.C. 5141-5164) (as amended by section 201 of this 
Act) is amended by adding at the end the following:

``SEC. 323. PUBLIC COMMENT REQUIREMENT.

    ``(a) In General.--The Director of the Federal Emergency Management 
Agency shall provide an opportunity for public comment before adopting 
any new or modified policy that would have a meaningful impact on the 
amount of disaster assistance that may be provided to a State or local 
government by the President under this Act.
    ``(b) Retroactive Application of Policies.--The Director may not 
adopt any new or modified policy that would retroactively reduce the 
amount of assistance provided to a State or local government under this 
Act.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.

    The first section (42 U.S.C. 5121 note) is amended to read as 
follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Robert T. Stafford Disaster Relief 
and Emergency Assistance Act'.''.

SEC. 302. DEFINITION OF STATE.

    Section 102 (42 U.S.C. 5122) is amended in each of paragraphs (3) 
and (4) by striking ``the Northern'' and all that follows through 
``Pacific Islands'' and inserting ``and the Commonwealth of the 
Northern Mariana Islands''.

SEC. 303. FIRE SUPPRESSION GRANTS.

    Section 420 (42 U.S.C. 5187) is amended by inserting ``and local 
government'' after ``State''.

SEC. 304. BUY AMERICAN.

    (a) Compliance With Buy American Act.--No funds authorized to be 
appropriated pursuant to this Act or any amendment made by this Act may 
be expended by an entity unless the entity, in expending the funds, 
complies with the Buy American Act (41 U.S.C. 10a et seq.).
    (b) Debarment of Persons Convicted of Fraudulent Use of ``Made in 
America'' Labels.--
            (1) In general.--If the Director of the Federal Emergency 
        Management Agency determines that a person has been convicted 
        of intentionally affixing a label bearing a ``Made in America'' 
        inscription to any product sold in or shipped to the United 
        States that is not made in America, the Director shall 
        determine, not later than 90 days after determining that the 
        person has been so convicted, whether the person should be 
        debarred from contracting under the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act.
            (2) Debar defined.--In this section, the term ``debar'' has 
        the meaning given that term by section 2393(c) of title 10, 
        United States Code.

            Passed the House of Representatives March 4, 1999.

            Attest:

                                                                 Clerk.
```