I

106TH CONGRESS

1ST SESSION H. R. 707

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

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

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 and Cost Reduction Act of 1999’’.
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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
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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
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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
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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.
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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.
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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 extent to which assistance will fund

7 activities that mitigate hazards evaluated under sec8 tion 409.

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

10 maximize net benefits to society.

11 ‘‘(5) The ability of the State or local govern12 ment to fund mitigation activities.

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

14 mitigation activities in small impoverished commu15 nities.

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

17 to enter into a partnership to promote mitigation.

18 ‘‘(8) Such other criteria as the President estab19 lishes in consultation with State and local govern20 ments.

21 ‘‘(e) STATE NOMINATIONS.—

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

23 may recommend to the President not less than 5

24 local governments to receive assistance under this

25 section. The recommendations shall be submitted to
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1 the President not later than October 1, 1999, and

2 each October 1st thereafter or such later date in the

3 year as the President may establish. In making such

4 recommendations, the Governors shall consider the

5 criteria identified in subsection (d).

6 ‘‘(2) USE.—

7 ‘‘(A) GENERAL RULE.—In providing as8 sistance to local governments under this sec9 tion, the President shall select from local gov10 ernments recommended by the Governors under

11 this subsection.

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

13 government, the President may waive the limi14 tation in subparagraph (A) if the President de15 termines that extraordinary circumstances jus16 tify the waiver and that granting the waiver will

17 further the purpose of this section.

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

19 Governor of a State fails to submit recommendations

20 under this subsection in a timely manner, the Presi21 dent may select, subject to the criteria in subsection

22 (d), any local governments of the State to receive

23 assistance under this section.

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

25 purpose of this section, the term ‘small impoverished com-
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1 munities’ means communities of 3,000 or fewer individuals

2 that are economically disadvantaged, as determined by the

3 State in which the community is located and based on cri4 teria established by the President.

5 ‘‘(g) FEDERAL SHARE.—Financial assistance pro6 vided under this section may contribute up to 75 percent

7 of the total cost of mitigation activities approved by the

8 President; except that the President may contribute up to

9 90 percent of the total cost of mitigation activities in small

10 impoverished communities.

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

12 is authorized to be appropriated to carry out this section

13 $25,000,000 for fiscal year 1999 and $80,000,000 for fis14 cal year 2000.

15 ‘‘(i) AUTHORIZATION OF SECTION 404 FUNDS.—Ef16 fective October 1, 1999, in addition to amounts appro17 priated under subsection (h), the President may use, to

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

19 out section 404 for post-disaster mitigation activities that

20 have not been obligated within 30 months of the disaster

21 declaration upon which the funding availability is based.

22 ‘‘(j) REPORT ON FEDERAL AND STATE ADMINISTRA23 TION.—Not later than 18 months after the date of enact24 ment of the Disaster Mitigation and Cost Reduction Act

25 of 1999, the President, in consultation with State and
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1 local governments, shall transmit to Congress a report

2 evaluating efforts to implement this section and rec3 ommending a process for transferring greater authority

4 and responsibility for administering the assistance pro5 gram authorized by this section to capable States.’’.

6 SEC. 105. INTERAGENCY TASK FORCE.

7 The President shall establish an interagency task

8 force for the purpose of coordinating the implementation

9 of the predisaster hazard mitigation program authorized

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

11 and Emergency Assistance Act. The Director of the Fed12 eral Emergency Management Agency shall chair such task

13 force.

14 SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION

15 COSTS.

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

17 5170c(a)) is amended by striking ‘‘15 percent’’ and insert18 ing ‘‘20 percent’’.

19 (b) APPLICABILITY.—The amendment made by sub20 section (a) shall apply to major disasters declared under

21 the Robert T. Stafford Disaster Relief Act and Emergency

22 Assistance Act after January 1, 1997.

23 SEC. 107. CONFORMING AMENDMENT.

24 The heading for title II is amended to read as follows:
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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,
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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:
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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
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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,
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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
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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
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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 es10 timation procedures developed under paragraph (3)

11 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) USE OF SURPLUS FUNDS.—In the event

25 the actual cost of repairing, restoring, reconstruct-
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1 ing, or replacing a facility under this section is less

2 than 100 percent but not less than 80 percent of the

3 cost estimated under paragraph (1), the government

4 or person receiving assistance under this section

5 shall use any surplus funds to perform activities that

6 are cost-effective and reduce the risk of future dam7 age, hardship, or suffering from a major disaster.

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

9 months after the date of enactment of the Disaster

10 Mitigation and Cost Reduction Act of 1999, the

11 President, acting through the Director of the Fed12 eral Emergency Management Agency, shall establish

13 an expert panel, including representatives from the

14 construction industry, to develop procedures for esti15 mating the cost of repairing, restoring, reconstruct16 ing, or replacing a facility consistent with industry

17 practices.

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

19 facility being repaired, restored, reconstructed, or re20 placed under this section was under construction on

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

22 restoring, reconstructing, or replacing such facility

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

24 costs which, under the contract for such construc-
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1 tion, are the owner’s responsibility and not the con2 tractor’s responsibility.’’.

3 (2) EFFECTIVE DATE.—The amendment made

4 by paragraph (1) shall take effect on the date of en5 actment of this Act; except that paragraph (1) of

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

7 Relief and Emergency Assistance Act (as amended

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

9 on the date that the procedures developed under

10 paragraph (3) of such section take effect.

11 (e) ASSOCIATED EXPENSES.—

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

13 4172) is amended by striking subsection (f).

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

15 (42 U.S.C. 5172(f)), as amended by subsection (d)

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

17 following:

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

19 this section, other eligible costs include the following:

20 ‘‘(A) COSTS OF NATIONAL GUARD.—The

21 cost of mobilizing and employing the National

22 Guard for performance of eligible work.

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

24 of using prison labor to perform eligible work,

25 including wages actually paid, transportation to
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1 a worksite, and extraordinary costs of guards,

2 food, and lodging.

3 ‘‘(C) OTHER LABOR COSTS.—Base and

4 overtime wages for an applicant’s employees

5 and extra hires performing eligible work plus

6 fringe benefits on such wages to the extent that

7 such benefits were being paid before the disas8 ter.’’.

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

10 shall take effect on the date on which the President

11 establishes management cost rates under section

12 322(a) of the Robert T. Stafford Disaster Relief and

13 Emergency Assistance Act (as added by section

14 201(a) of this Act). The amendment made by para15 graph (1) shall only apply to disasters declared by

16 the President under such Act after the date on

17 which the President establishes such cost rates.

18 SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND

19 HOUSEHOLDS.

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

21 amended to read as follows:

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

23 HOUSEHOLDS.

24 ‘‘(a) GENERAL AUTHORITY.—Subject to the require25 ments of this section, the President, in consultation with
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1 the Governor of the affected State, may provide financial

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

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

4 necessary expenses and serious needs where such victims

5 are unable to meet such expenses or needs through other

6 means.

7 ‘‘(b) HOUSING ASSISTANCE.—

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

9 financial or other assistance under this section to in10 dividuals and families to respond to the disaster-re11 lated housing needs of those who are displaced from

12 their predisaster primary residences or whose

13 predisaster primary residences are rendered un14 inhabitable as a result of damage caused by a major

15 disaster.

16 ‘‘(2) DETERMINATION OF APPROPRIATE TYPES

17 OF ASSISTANCE.—The President shall determine ap18 propriate types of housing assistance to be provided

19 to disaster victims under this section based upon

20 considerations of cost effectiveness, convenience to

21 disaster victims, and such other factors as the Presi22 dent may consider appropriate. One or more types of

23 housing assistance may be made available, based on

24 the suitability and availability of the types of assist-
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1 ance, to meet the needs of disaster victims in the

2 particular disaster situation.

3 ‘‘(c) TYPES OF HOUSING ASSISTANCE.—

4 ‘‘(1) TEMPORARY HOUSING.—

5 ‘‘(A) FINANCIAL ASSISTANCE.—

6 ‘‘(i) IN GENERAL.—The President

7 may provide financial assistance under this

8 section to individuals or households to rent

9 alternate housing accommodations, existing

10 rental units, manufactured housing, rec11 reational vehicles, or other readily fab12 ricated dwellings.

13 ‘‘(ii) AMOUNT.—The amount of as14 sistance under clause (i) shall be based on

15 the fair market rent for the accommoda16 tion being furnished plus the cost of any

17 transportation, utility hookups, or unit in18 stallation not being directly provided by

19 the President.

20 ‘‘(B) DIRECT ASSISTANCE.—

21 ‘‘(i) IN GENERAL.—The President

22 may also directly provide under this section

23 housing units, acquired by purchase or

24 lease, to individuals or households who, be25 cause of a lack of available housing re-
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1 sources, would be unable to make use of

2 the assistance provided under subpara3 graph (A).

4 ‘‘(ii) PERIOD OF ASSISTANCE.—The

5 President may not provide direct assist6 ance under clause (i) with respect to a

7 major disaster after the expiration of the

8 18-month period beginning on the date of

9 the declaration of the major disaster by the

10 President, except that the President may

11 extend such period if the President deter12 mines that due to extraordinary cir13 cumstances an extension would be in the

14 public interest.

15 ‘‘(iii) COLLECTION OF RENTAL

16 CHARGES.—After the expiration of the 18-

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

18 President may charge fair market rent for

19 the accommodation being provided.

20 ‘‘(2) REPAIRS.—The President may provide fi21 nancial assistance for the repair of owner-occupied

22 private residences, utilities, and residential infra23 structure (such as private access routes) damaged by

24 a major disaster to a habitable or functioning condi25 tion. A recipient of assistance provided under this
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1 paragraph need not show that the assistance can be

2 met through other means, except insurance proceeds,

3 if the assistance is used for emergency repairs to

4 make a private residence habitable and does not ex5 ceed $5,000 (based on fiscal year 1998 constant dol6 lars).

7 ‘‘(3) REPLACEMENT.—The President may pro8 vide financial assistance for the replacement of

9 owner-occupied private residences damaged by a

10 major disaster. Assistance provided under this para11 graph shall not exceed $10,000 (based on fiscal year

12 1998 constant dollars). The President may not waive

13 any provision of Federal law requiring the purchase

14 of flood insurance as a condition for the receipt of

15 Federal disaster assistance with respect to assist16 ance provided under this paragraph.

17 ‘‘(4) PERMANENT HOUSING CONSTRUCTION.—

18 The President may provide financial assistance or

19 direct assistance under this section to individuals or

20 households to construct permanent housing in insu21 lar areas outside the continental United States and

22 other remote locations in cases in which—

23 ‘‘(A) no alternative housing resources are

24 available; and
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1 ‘‘(B) the types of temporary housing as2 sistance described in paragraph (1) are unavail3 able, infeasible, or not cost effective.

4 ‘‘(d) TERMS AND CONDITIONS RELATING TO HOUS5 ING ASSISTANCE.—

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

7 provided under this section shall, whenever possible,

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

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

10 owner of the site, or by the occupant who was dis11 placed by the major disaster. Readily fabricated

12 dwellings may be located on sites provided by the

13 President if the President determines that such sites

14 would be more economical or accessible.

15 ‘‘(2) DISPOSAL OF UNITS.—

16 ‘‘(A) SALE TO OCCUPANTS.—

17 ‘‘(i) IN GENERAL.—Notwithstanding

18 any other provision of law, a temporary

19 housing unit purchased under this section

20 by the President for the purposes of hous21 ing disaster victims may be sold directly to

22 the individual or household who is occupy23 ing the unit if the individual or household

24 needs permanent housing.
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1 ‘‘(ii) SALES PRICE.—Sales of tem2 porary housing units under clause (i) shall

3 be accomplished at prices that are fair and

4 equitable.

5 ‘‘(iii) DEPOSIT OF PROCEEDS.—Not6 withstanding any other provision of law,

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

8 be deposited into the appropriate Disaster

9 Relief Fund account.

10 ‘‘(iv) USE OF GSA SERVICES.—The

11 President may use the services of the Gen12 eral Services Administration to accomplish

13 a sale under clause (i).

14 ‘‘(B) OTHER METHODS OF DISPOSAL.—

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

16 subparagraph (A), a temporary housing

17 unit purchased by the President for the

18 purposes of housing disaster victims may

19 be resold.

20 ‘‘(ii) DISPOSAL TO GOVERNMENTS

21 AND VOLUNTARY ORGANIZATIONS.—A tem22 porary housing unit described in clause (i)

23 may also be sold, transferred, donated, or

24 otherwise made available directly to a

25 State or other governmental entity or to a
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1 voluntary organization for the sole purpose

2 of providing temporary housing to disaster

3 victims in major disasters and emergencies

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

5 donation, the State, other governmental

6 agency, or voluntary organization agrees to

7 comply with the nondiscrimination provi8 sions of section 308 and to obtain and

9 maintain hazard and flood insurance on

10 the housing unit.

11 ‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER

12 NEEDS.—

13 ‘‘(1) MEDICAL, DENTAL, AND FUNERAL EX14 PENSES.—The President, in consultation with the

15 Governor of the affected State, may provide financial

16 assistance under this section to an individual or

17 household adversely affected by a major disaster to

18 meet disaster-related medical, dental, and funeral

19 expenses.

20 ‘‘(2) PERSONAL PROPERTY, TRANSPORTATION,

21 AND OTHER EXPENSES.—The President, in con22 sultation with the Governor of the affected State,

23 may provide financial assistance under this section

24 to an individual or household described in paragraph

25 (1) to address personal property, transportation, and
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1 other necessary expenses or serious needs resulting

2 from the major disaster.

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

4 the substantial and ongoing involvement of the affected

5 State in administering the assistance under this section.

6 ‘‘(g) MAXIMUM AMOUNT OF ASSISTANCE.—No indi7 vidual or household shall receive financial assistance great8 er than $25,000 under this section with respect to a single

9 major disaster. Such limit shall be adjusted annually to

10 reflect changes in the Consumer Price Index for all Urban

11 Consumers published by the Department of Labor.

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

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

14 including criteria, standards, and procedures for determin15 ing eligibility for assistance.’’.

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

17 (42 U.S.C. 5192(a)(6)) is amended by striking ‘‘tem18 porary housing’’.

19 (c) ELIMINATION OF INDIVIDUAL AND FAMILY

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

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

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

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

24 the date of enactment of this Act.
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1 SEC. 204. REPEALS.

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

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

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

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

6 SEC. 205. STATE ADMINISTRATION OF HAZARD MITIGATION

7 PROGRAM.

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

9 at the end the following:

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

11 ‘‘(1) IN GENERAL.—A State desiring to admin12 ister the hazard mitigation assistance program es13 tablished by this section with respect to hazard miti14 gation assistance in the State may submit to the

15 President an application for the delegation of such

16 authority.

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

18 with States and local governments, shall establish

19 criteria for the approval of applications submitted

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

21 minimum, the following:

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

23 to manage the grant program under this sec24 tion.

25 ‘‘(B) Submission of the plan required

26 under section 201(c).
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1 ‘‘(C) A demonstrated commitment to miti2 gation activities.

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

4 an application submitted under paragraph (1) that

5 meets the criteria established under paragraph (2).

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

7 approving an application of a State submitted under

8 paragraph (1), the President determines that the

9 State is not administering the hazard mitigation as10 sistance program established by this section in a

11 manner satisfactory to the President, the President

12 shall withdraw such approval.

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

14 periodic audits of the hazard mitigation assistance

15 programs administered by States under this sub16 section.’’.

17 SEC. 206. STATE ADMINISTRATION OF DAMAGED FACILI18 TIES PROGRAM.

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

20 and local governments and in coordination with efforts to

21 streamline the delivery of disaster relief assistance, the

22 President shall conduct a pilot program for the purpose

23 of determining the desirability of State administration of

24 parts of the assistance program established by section 406
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1 of the Robert T. Stafford Disaster Relief and Emergency

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

3 (b) STATE PARTICIPATION.—

4 (1) CRITERIA.—The President may establish

5 criteria in order to ensure the appropriate implemen6 tation of the pilot program under subsection (a).

7 (2) MINIMUM NUMBER OF STATES.—The Presi8 dent shall conduct the pilot program under sub9 section (a) in at least 2 States.

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

11 of enactment of this Act, the President shall transmit to

12 Congress a report describing the results of the pilot pro13 gram conducted under subsection (a), including identify14 ing any administrative or financial benefits. Such report

15 shall also include recommendations on the conditions, if

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

17 administer parts of the assistance program under section

18 406 of the Robert T. Stafford Disaster Relief and Emer19 gency Assistance Act (42 U.S.C. 5172).

20 SEC. 207. STUDY REGARDING COST REDUCTION.

21 Not later than 3 years after the date of enactment

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

23 shall conduct a study to estimate the reduction in Federal

24 disaster assistance that has resulted and is likely to result

25 from the enactment of this Act.
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1 SEC. 208. REPORT ON ASSISTANCE TO AGRICULTURAL

2 COMMUNITIES.

3 Not later than 180 days after the date of enactment

4 of this Act, the Director of the Federal Emergency Man5 agement Agency shall prepare and transmit to Congress

6 a report on methods and procedures that the Director rec7 ommends to accelerate the provision of Federal disaster

8 assistance under the Robert T. Stafford Disaster Relief

9 and Emergency Assistance Act (42 U.S.C. 5121 et seq.)

10 to agricultural communities.

11 SEC. 209. STUDY REGARDING INSURANCE FOR PUBLIC IN12 FRASTRUCTURE.

13 The Comptroller General of the United States shall

14 conduct a study to determine the current and future ex15 pected availability of disaster insurance for public infra16 structure eligible for assistance under section 406 of the

17 Robert T. Stafford Disaster Relief and Emergency Assist18 ance Act (42 U.S.C. 5170).

19 TITLE III—MISCELLANEOUS

20 SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.

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

22 to read as follows:

23 ‘‘SECTION 1. SHORT TITLE.

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

25 Disaster Relief and Emergency Assistance Act’.’’.
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1 SEC. 302. DEFINITION OF STATE.

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

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

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

5 ‘‘and the Commonwealth of the Northern Mariana Is6 lands’’.

7 SEC. 303. FIRE SUPPRESSION GRANTS.

8 Section 420 (42 U.S.C. 5187) is amended by insert9 ing ‘‘and local government’’ after ‘‘State’’.

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