I

106TH CONGRESS

1ST SESSION H. R. 1711

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

MAY 5, 1999

Mr. SHUSTER (for himself, Mr. OBERSTAR, Mrs. FOWLER, and Mr. TRAFICANT) (all by request) 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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Disaster Mitigation Act of 1999’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

Sec. 2. Amendments to the Robert T. Stafford Disaster Relief and Emergency

Assistance Act.

TITLE I—PREDISASTER HAZARDS MITIGATION

Sec. 101. Findings and purpose.

Sec. 102. Predisaster hazard mitigation.

Sec. 103. Maximum contribution for mitigation costs.

Sec. 104. Conforming amendment.

TITLE II—DISASTER PREPAREDNESS AND MITIGATION

ASSISTANCE

Sec. 201. Insurance.

Sec. 202. Management costs.

Sec. 203. Assistance to repair, restore, reconstruct, or replace damaged facilities.

Sec. 204. Federal assistance to households.

Sec. 205. Repeals.

1 SEC. 2. AMENDMENTS TO THE ROBERT T. STAFFORD DIS2 ASTER RELIEF AND EMERGENCY ASSISTANCE

3 ACT.

4 Except as otherwise specifically provided, whenever in

5 this Act an amendment or repeal is expressed in terms

6 of an amendment to, or repeal of, a section or other provi7 sion of law, the reference shall be considered to be made

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

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

10 5121 et seq.).

11 TITLE I—PREDISASTER

12 HAZARDS MITIGATION

13 SEC. 101. FINDINGS AND PURPOSE.

14 (a) FINDINGS.—The Congress finds that—

15 (1) natural disasters, including earthquakes,

16 tsunamis, tornadoes, hurricanes, and flooding, cause
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1 great danger to human life and to property through2 out the United States;

3 (2) greater emphasis needs to be placed on

4 identifying and assessing the risks to State and local

5 communities and on implementing adequate meas6 ures to reduce losses from such disasters, and to en7 sure that communities’ critical public infrastructure

8 and facilities will continue to function after a dis9 aster;

10 (3) expenditures for post-disaster assistance are

11 increasing without commensurate reductions in the

12 likelihood of future losses from such natural disas13 ters;

14 (4) high priority in the expenditure of Federal

15 funds under this Act should be given to mitigate

16 hazards for existing and new construction at the

17 local level; and

18 (5) with a unified effort of economic incentives,

19 awareness, and education, technical assistance, and

20 demonstrated Federal support, States and local com21 munities can form effective community-based part22 nerships for hazard mitigation purposes, implement

23 effective hazards mitigation measures that reduce

24 the existing disaster potential, ensure continued

25 functionality of communities’ critical public infra-
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1 structure, leverage additional non-Federal resources

2 into their disaster resistance goals, and make com3 mitments to long-term mitigation efforts in new and

4 existing construction.

5 (b) PURPOSE.—It is the purpose of this Act to estab6 lish a national disaster mitigation program that—

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

8 suffering, economic disruption, and disaster assist9 ance costs resulting from natural hazards; and

10 (2) provides a source of predisaster mitigation

11 funding that will assist States and local governments

12 in implementing effective mitigation measures that

13 are designed to ensure the continued functionality of

14 their critical facilities and public infrastructure after

15 a natural disaster.

16 SEC. 102. PREDISASTER HAZARD MITIGATION.

17 (a) IN GENERAL.—Title II (42 U.S.C. 5131 et seq.)

18 is amended by adding new section 203 as follows:

19 ‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.

20 ‘‘(a) GENERAL AUTHORITY.—The Director may es21 tablish a program of technical and financial assistance to

22 States and local governments that implement predisaster

23 mitigation measures in order to reduce injuries and loss

24 of life and damage and destruction of property including

25 damage to their critical public infrastructure and facilities.
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1 ‘‘(b) APPROVAL BY DIRECTOR.—If the Director finds

2 that a State or local government has identified all natural

3 disaster hazards in its jurisdiction and has demonstrated

4 its ability to form effective public/private disaster mitiga5 tion partnerships, he may provide financial assistance to

6 the State or local government for such purposes from the

7 fund established under subsection (d) of this section.

8 ‘‘(c) PURPOSE OF GRANTS.—(1) The financial assist9 ance shall be used principally by States and local govern10 ments to implement the predisaster hazard mitigation

11 measures contained in proposals approved by the Director.

12 Funding may also be used to support effective public/pri13 vate partnerships, to ensure that new community growth

14 and construction is disaster resistant, and to improve the

15 assessment of a community’s natural hazards

16 vulnerabilities or to set a community’s mitigation prior17 ities.

18 ‘‘(2) The Director shall take into account the fol19 lowing when establishing priorities for predisaster mitiga20 tion grants:

21 ‘‘(A) the level and nature of the risks to be

22 mitigated;

23 ‘‘(B) Grantee commitment to reduce damages

24 from future disasters.
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1 ‘‘(C) Commitment by the State or local govern2 ment to support ongoing non-Federal support for

3 the mitigation measures to be undertaken.

4 ‘‘(d) NATIONAL PREDISASTER MITIGATION FUND.—

5 To carry out the predisaster mitigation program author6 ized in subsection (a), the Director may establish in the

7 United States Treasury a National Predisaster Mitigation

8 Fund (‘‘Fund’’), which shall be available without fiscal

9 year limitation for grants to States and local governments

10 under subsection (b) of this section.

11 ‘‘(e) FUNDS FOR THE ACCOUNT.—The Fund shall be

12 credited with—

13 ‘‘(1) funds appropriated by the Congress for the

14 purposes of this section, which funds shall be avail15 able until expended; and

16 ‘‘(2) sums available from bequests, gifts, or do17 nations of service, money, or property, real, per18 sonal, or mixed, tangible, or intangible, given for

19 purposes of predisaster mitigation.

20 ‘‘(f) FEDERAL SHARE.—Subject to the provisions of

21 subsections (g) and (h) of this section, grants from the

22 Fund shall be not more than 75 percent of the total costs

23 of the mitigation proposal(s) approved by the Director.

24 ‘‘(g) LIMIT ON GRANTS.—No grants shall be made

25 in excess of the money available in the Fund.
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1 ‘‘(h) RULES GOVERNING THE ACCOUNT.—The Direc2 tor shall publish rules to carry out the provisions of this

3 section.’’.

4 (b) EFFECTIVE DATE.—Subsection (a) of this section

5 shall take effect on the date of enactment of the Disaster

6 Mitigation Act of 1999.

7 SEC. 103. MAXIMUM CONTRIBUTION FOR MITIGATION

8 COSTS.

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

10 5170c(a)) is amended in the last sentence by striking ‘‘15

11 percent’’ and inserting ‘‘20 percent’’.

12 (b) APPLICABILITY.—The amendment made by sub13 section (a) shall apply to each major disaster declared

14 under the Robert T. Stafford Disaster Relief and Emer15 gency Assistance Act (42 U.S.C. 5121 et seq.) after the

16 date of enactment of this Act.

17 SEC. 104. CONFORMING AMENDMENT.

18 Title II (42 U.S.C. 5131 et seq.) is amended by strik19 ing the title heading and inserting the following:
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1 ‘‘TITLE II—DISASTER PREPARED2 NESS AND MITIGATION AS3 SISTANCE’’.

4 TITLE II—DISASTER PREPARED5 NESS AND MITIGATION AS6 SISTANCE

7 SEC. 201. INSURANCE.

8 Section 311(a)(2) (42 U.S.C. 5154(a)(2)) is

9 amended—

10 (1) by inserting ‘‘(A)’’ before the sentence; and

11 (2) by adding subparagraph (B) to the sub12 section as follows:

13 ‘‘(B) The President shall publish rules to

14 require States, communities, or other applicants

15 to protect property through self-insurance or

16 adequate mitigation measures if the appropriate

17 State insurance commissioner makes the certifi18 cation provided in subparagraph (A) and the

19 President determines that the property is not

20 adequately protected against natural or other

21 disasters.’’.

22 SEC. 202. MANAGEMENT COSTS.

23 (a) IN GENERAL.—Title III (42 U.S.C. 5141 et seq.)

24 is amended by adding a new section 322 as follows:
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1 ‘‘SEC. 322. MANAGEMENT COSTS.

2 ‘‘(a) DEFINITION OF MANAGEMENT COST.—The

3 term ‘management cost’, as used in this section, includes

4 any indirect cost, administrative expense, and any other

5 expense not directly chargeable to a specific project under

6 a major disaster, emergency, or emergency preparedness

7 activity or measure.

8 ‘‘(b) MANAGEMENT COST RATES.—Notwithstanding

9 any other provision of law (including any administrative

10 rule or guidance), the President shall establish manage11 ment cost rates for grantees and subgrantees that shall

12 be used to determine contributions under this Act for

13 management costs.

14 ‘‘(c) REVIEW.—The President shall review the man15 agement cost rates established under subsection (b) not

16 later than 3 years after the date of establishment of the

17 rates and periodically thereafter.

18 ‘‘(d) REGULATIONS.—The President shall promul19 gate regulations to define appropriate costs to be included

20 in management costs under this section.’’.

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

22 Stafford Disaster Relief and Emergency Assistance Act

23 (as added by subsection (a)) shall apply as follows:

24 (1) IN GENERAL.—Subsections (a), (b), and (d)

25 of section 322 of that Act shall apply to each major

26 disaster declared under that Act on or after the date
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1 of enactment of this Act. Until the date on which

2 the President establishes the management cost rates

3 under that subsection, section 406(f) of that Act (42

4 U.S.C. 5172(f)) shall be used for establishing the

5 rates.

6 (2) REVIEW; OTHER EXPENSES.—Section

7 322(c) of that Act shall apply to each major disaster

8 declared under that Act on or after the date on

9 which the President establishes the management

10 cost rates under that section.

11 SEC. 203. ASSISTANCE TO REPAIR, RESTORE, RECON12 STRUCT, OR REPLACE DAMAGED FACILITIES.

13 (a) MINIMUM FEDERAL SHARE.—Section 406(b) (42

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

15 ‘‘(b)(1) Except as provided in paragraph (2) of this

16 subsection, the Federal share of assistance under this sec17 tion shall be not less than 75 percent of the eligible cost

18 of repair, restoration, reconstruction, or replacement car19 ried out under this section.

20 ‘‘(2) The President shall publish rules to reduce the

21 Federal share of assistance under this section for the re22 pair, restoration, reconstruction, or replacement of any eli23 gible public or private nonprofit facility that has previously

24 received significant disaster assistance under this Act on

25 multiple occasions.’’.
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1 (b) CONTRIBUTIONS AND FEDERAL SHARE.—

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

3 5172) is amended by striking subsection (e) and in4 serting new subsection (e) to read as follows:

5 ‘‘(e) ELIGIBLE COST.—

6 ‘‘(1) DETERMINATION.—

7 ‘‘(A) IN GENERAL.—For the purposes of

8 this section, the President shall estimate the eli9 gible cost of repairing, restoring, recon10 structing, or replacing a public facility or pri11 vate nonprofit facility—

12 ‘‘(i) on the basis of the design of the

13 facility as the facility existed immediately

14 before the major disaster; and

15 ‘‘(ii) in conformity with current appli16 cable codes, specifications, and standards

17 (including floodplain management and haz18 ard mitigation criteria required by the

19 President or under the Coastal Barrier Re20 sources Act (16 U.S.C. 3501 et seq.)).

21 ‘‘(B) COST ESTIMATION PROCEDURES.—

22 Subject to paragraph (2), the President shall

23 use the cost estimation procedures developed

24 under paragraph (3) to make the estimate

25 under subparagraph (A).
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1 ‘‘(2) MODIFICATION OF ELIGIBLE COST.—If the

2 actual cost of repairing, restoring, reconstructing, or

3 replacing a facility under this section is more than

4 120 percent or less than 80 percent of the cost esti5 mated under paragraph (1), the President may de6 termine that the eligible cost shall be the actual cost

7 of the repair, restoration, reconstruction, or replace8 ment.

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

10 months after the date of enactment of this para11 graph, the President, acting through the Director of

12 the Federal Emergency Management Agency, shall

13 establish an expert panel, which shall include rep14 resentatives from the construction industry, to de15 velop procedures for estimating the cost of repairing,

16 restoring, reconstructing, or replacing a facility con17 sistent with industry practices.

18 ‘‘(4) 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 the facility

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

24 those costs that, under the contract for the 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)) shall take effect on the date on

9 which the procedures developed under paragraph (3)

10 of that section take effect.

11 SEC. 204. FEDERAL ASSISTANCE TO HOUSEHOLDS.

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

13 amended to read as follows:

14 ‘‘SEC. 408. FEDERAL ASSISTANCE TO HOUSEHOLDS.

15 ‘‘(a) GENERAL AUTHORITY.—In accordance with this

16 section, the President, in consultation and coordination

17 with the Governor of an affected State, may provide finan18 cial assistance, and, if necessary, direct services, to dis19 aster victims who—

20 ‘‘(1) as a direct result of a major disaster have

21 necessary expenses and serious needs; and

22 ‘‘(2) are unable to meet the necessary expenses

23 and serious needs through other means, including

24 insurance proceeds or loan or other financial assist25 ance from the Small Business Administration or an-
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1 other Federal agency. Inability to meet necessary ex2 penses and serious needs through loan or other fi3 nancial assistance from the Small Business Adminis4 tration or another Federal agency shall not apply to

5 temporary housing or rental assistance under sub6 section (c)(2) or to permanent housing construction

7 under subsection (c)(4) of this section.

8 ‘‘(b) HOUSING ASSISTANCE.—

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

10 financial or other assistance under this section to

11 households to respond to the disaster-related hous12 ing needs of households that are displaced from their

13 predisaster primary residences or whose predisaster

14 primary residences are rendered uninhabitable as a

15 result of damage caused by a major 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 on con20 siderations of cost-effectiveness, convenience to dis21 aster victims, and such other factors as the Presi22 dent considers to be appropriate. One or more types

23 of housing assistance may be made available, based

24 on the suitability and availability of the types of as-
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1 sistance, to meet the needs of disaster victims in a

2 particular disaster situation.

3 ‘‘(c) TYPES OF HOUSING ASSISTANCE.—

4 ‘‘(1) PERIOD OF ASSISTANCE.—Federal assist5 ance under this subsection shall continue no longer

6 than 18 months after the date of the major disaster

7 declaration by the President, unless the President

8 determines that it is in the public interest to extend

9 such 18-month period.

10 ‘‘(2) TEMPORARY HOUSING.—

11 ‘‘(A) FINANCIAL ASSISTANCE.—

12 ‘‘(i) IN GENERAL.—The President

13 may provide financial assistance under this

14 section to households to rent alternative

15 housing accommodations, existing rental

16 units, manufactured housing, recreational

17 vehicles, or other readily fabricated dwell18 ings.

19 ‘‘(ii) AMOUNT.—The amount of as20 sistance under clause (i) shall be based on

21 the sum of—

22 ‘‘(I) the fair market rent for the

23 accommodation being provided; and

24 ‘‘(II) the cost of any transpor25 tation, utility hookups, or unit instal-
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1 lation not being directly provided by

2 the President.

3 ‘‘(B) DIRECT ASSISTANCE.—

4 ‘‘(i) IN GENERAL.—The President

5 may directly provide under this section

6 housing units, acquired by purchase or

7 lease, to households who, because of a lack

8 of available housing resources, would be

9 unable to make use of the assistance pro10 vided under subparagraph (A).

11 ‘‘(ii) COLLECTION OF RENTAL

12 CHARGES.—After the expiration of the 18-

13 month period referred to in subsection

14 (c)(1), the President may charge fair mar15 ket rent for the accommodation being fur16 nished.

17 ‘‘(3) REPAIRS.—

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

19 provide financial assistance for the repair of

20 owner-occupied primary residences, utilities,

21 and residential infrastructure (such as private

22 access routes) damaged by a major disaster to

23 a habitable or functioning condition.

24 ‘‘(B) EMERGENCY REPAIRS.—To be eligi25 ble to receive assistance under subparagraph
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1 (A), a recipient shall not be required to dem2 onstrate that the recipient is unable to meet the

3 need for the assistance through other means,

4 except insurance proceeds, if the assistance—

5 ‘‘(i) is used for emergency repairs to

6 make a private primary residence habit7 able; and

8 ‘‘(ii) does not exceed $5,000, as ad9 justed annually to reflect changes in the

10 Consumer Price Index for Urban Con11 sumers as reported by the Bureau of

12 Labor Statistics of the Department of

13 Labor.

14 ‘‘(4) PERMANENT HOUSING CONSTRUCTION.—

15 The President may provide financial assistance or

16 direct assistance under this section to households to

17 construct permanent housing in insular areas out18 side the continental United States and in other re19 mote locations in cases in which—

20 ‘‘(A) no alternative housing resources are

21 available; and

22 ‘‘(B) the types of temporary housing as23 sistance described in subsection (c)(1) are un24 available, infeasible, or not cost-effective.
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1 ‘‘(d) TERMS AND CONDITIONS RELATING TO HOUS2 ING ASSISTANCE.—

3 ‘‘(1) SITES.—

4 ‘‘(A) IN GENERAL.—Any readily fabricated

5 dwelling provided under this section shall,

6 whenever practicable, be located on a site

7 that—

8 ‘‘(i) is provided by the State or local

9 government; and

10 ‘‘(ii) is complete with utilities provided

11 by the State or local government, by the

12 owner of the site, or by the occupant who

13 was displaced by the major disaster.

14 ‘‘(B) SITES PROVIDED BY THE PRESI15 DENT.—Readily fabricated dwellings may be lo16 cated on sites provided by the President if the

17 President determines that the sites would be

18 more economical or accessible.

19 ‘‘(2) DISPOSAL OF UNITS.—

20 ‘‘(A) SALE TO OCCUPANTS.—

21 ‘‘(i) IN GENERAL.—Notwithstanding

22 any other provision of law, a temporary

23 housing unit purchased under this section

24 by the President for the purpose of hous25 ing disaster victims may be sold directly to
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1 the household who is occupying the unit if

2 the household needs permanent housing.

3 ‘‘(ii) SALES PRICE.—Sales of tem4 porary housing units under this clause

5 shall be accomplished at prices that are

6 fair and equitable.

7 ‘‘(iii) DEPOSIT OF PROCEEDS.—Not8 withstanding any other provision of law,

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

10 be deposited into the appropriate Disaster

11 Relief Fund account.

12 ‘‘(iv) USE OF GSA SERVICES.—The

13 President may use the services of the Gen14 eral Services Administration to accomplish

15 a sale under clause (i).

16 ‘‘(B) OTHER METHODS OF DISPOSAL.—

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

18 subparagraph (A), a temporary housing

19 unit purchased by the President for the

20 purpose of housing disaster victims may be

21 resold.

22 ‘‘(ii) DISPOSAL TO GOVERNMENTS

23 AND VOLUNTARY ORGANIZATIONS.—A tem24 porary housing unit described in clause (i)

25 may be sold, transferred, donated, or oth-
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1 erwise made available directly to a State or

2 other governmental entity or to a voluntary

3 organization for the sole purpose of pro4 viding temporary housing to disaster vic5 tims in major disasters and emergencies if,

6 as a condition of the sale, transfer, dona7 tion, or other making available, the State,

8 other governmental agency, or voluntary

9 organization agrees—

10 ‘‘(I) to comply with the non11 discrimination provisions of section

12 308; and

13 ‘‘(II) to obtain and maintain haz14 ard and flood insurance on the hous15 ing unit.

16 ‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER

17 NEEDS.—

18 ‘‘(1) MEDICAL, DENTAL, AND FUNERAL EX19 PENSES.—The President, in consultation and coordi20 nation with the Governor of the affected State, may

21 provide financial assistance under this section to a

22 household adversely affected by a major disaster to

23 meet disaster-related medical, dental, and funeral

24 expenses.
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1 ‘‘(2) PERSONAL PROPERTY, TRANSPORTATION,

2 AND OTHER EXPENSES.—The President, in con3 sultation and coordination with the Governor of the

4 affected State, may provide financial assistance

5 under this section to a household described in para6 graph (1) to address personal property, transpor7 tation, and other necessary expenses or serious

8 needs resulting from the major disaster.

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

10 the substantial and ongoing involvement of the affected

11 State in administering assistance under this section.

12 ‘‘(g) MAXIMUM AMOUNT OF ASSISTANCE.—The max13 imum amount of financial assistance that a household may

14 receive under this section with respect to a single major

15 disaster shall be $25,000, as adjusted annually to reflect

16 changes in the Consumer Price Index for all Urban Con17 sumers published by the Department of Labor.

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

19 shall issue rules and regulations to carry out the program

20 established by this section, including criteria, standards,

21 and procedures for determining eligibility for assistance.’’.

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

23 (42 U.S.C. 5192(a)(6)) is amended by striking ‘‘tem24 porary housing’’.
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1 (c) REPEAL OF INDIVIDUAL AND FAMILY GRANT

2 PROGRAMS.—Section 411 (42 U.S.C. 5178) is repealed.

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

4 this section take effect 18 months after the date of enact5 ment of this Act.

6 SEC. 205. REPEALS.

7 (a) ASSOCIATED EXPENSES.—Subject to the provi8 sions of section 202(b)(2) of this Act, section 406(f) (42

9 U.S.C. 5172(f)) is repealed.

10 (b) COMMUNITY DISASTER LOANS.—Section 417 (42

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

12 (c) SIMPLIFIED PROCEDURE.—Section 422 (42

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

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