I

104TH CONGRESS

1ST SESSION H. R. 824

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

Act and other laws to return primary responsibility for disaster relief

to the States, to establish a private corporation to insure States against

risks and costs of disasters otherwise borne by the States, and to provide

for reimbursable Federal assistance to States for activities in response

to disasters, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1995

Mr. OBEY (for himself, Mr. DURBIN, and Mr. STENHOLM) introduced the following bill; which was referred to the Committee on Transportation and

Infrastructure and, in addition, to the Committees on Banking and Financial Services, Small Business, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of

such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act and other laws to return primary

responsibility for disaster relief to the States, to establish

a private corporation to insure States against risks and

costs of disasters otherwise borne by the States, and

to provide for reimbursable Federal assistance to States

for activities in response to disasters, 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,
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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

3 ‘‘States’ Disaster Responsibility Act’’.

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

5 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Findings and purposes.

TITLE I—NATIONAL DISASTER INSURANCE PROGRAM

Sec. 101. Disaster insurance program.

TITLE II—TERMINATION OF FEDERAL DISASTER LOAN

PROGRAMS

Sec. 201. Termination of Small Business Administration disaster loan program.

Sec. 202. Repeal of Consolidated Farm Service Agency emergency loan program.

Sec. 203. Repeal of emergency relief program for repair of highways.

Sec. 204. Termination of HUD mortgage insurance programs for disaster victims.

Sec. 205. Applicability.

TITLE III—FEDERAL PROGRAM FOR REIMBURSABLE DISASTER

RELIEF AND EMERGENCY ASSISTANCE

Sec. 301. Amendment of Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Sec. 302. Findings and declarations.

Sec. 303. Waiver of administrative conditions.

Sec. 304. Emergency support teams.

Sec. 305. Reimbursement.

Sec. 306. Performance of services.

Sec. 307. Reimbursement agreements and conditions.

Sec. 308. Treatment of assistance.

Sec. 309. Liability.

Sec. 310. Advance of State expenditures.

Sec. 311. Procedure for declaration of major disaster.

Sec. 312. General Federal disaster assistance.

Sec. 313. Essential disaster assistance.

Sec. 314. Hazard mitigation.

Sec. 315. Repair, restoration, and replacement of damaged facilities.

Sec. 316. Debris removal.

Sec. 317. Temporary housing assistance.

Sec. 318. Minimum standards for public and private structures.

Sec. 319. Unemployment assistance.

Sec. 320. Individual and family grant programs.

Sec. 321. Crisis counseling assistance and training.

Sec. 322. Community disaster loans.

Sec. 323. Emergency communications.

Sec. 324. Emergency public transportation.
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Sec. 325. Fire suppression.

Sec. 326. Timber sale contracts.

Sec. 327. Simplified procedure.

Sec. 328. Appeals of assistance decisions.

Sec. 329. Procedure for declaration.

Sec. 330. Federal emergency assistance.

Sec. 331. Amount of assistance.

Sec. 332. Applicability.

1 SEC. 2. FINDINGS AND PURPOSES.

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

3 (1) while disasters can strike anywhere within

4 the United States, certain areas historically have

5 been more susceptible or vulnerable to disasters;

6 (2) the Federal Government has assumed the

7 financial responsibility for much of the emergency

8 relief and reconstruction provided after disasters;

9 (3) the amount of Federal financial assistance

10 provided for disaster relief has been steadily increas11 ing over time and the annual disaster relief obliga12 tions of the Federal Emergency Management Agency

13 have increased more than tenfold over the past 10

14 years, from $320,000,000 in 1985 to

15 $4,300,000,000 in 1994;

16 (4) the costs of disaster assistance have been

17 spread disproportionately to all United States citi18 zens rather than to citizens of the areas that are

19 most directly affected; and

20 (5) an amendment to the Constitution of the

21 United States requiring a balanced Federal budget
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1 would require major retrenchments in activities that

2 assist citizens of the United States in times of crises

3 and distress.

4 (b) PURPOSES.—The purposes of this Act are—

5 (1) to reaffirm the individual States’ primary

6 responsibility for disaster relief;

7 (2) to restore the Federal Government’s role for

8 disaster relief to one of secondary support, provided

9 on a reimbursable basis, in unusual or special emer10 gency situations that require services best provided

11 by Federal agencies;

12 (3) to establish a private corporation to provide

13 risk-based insurance to the individual States to as14 sist the States in meeting their obligations in disas15 ter relief; and

16 (4) to repeal existing Federal grant and loan

17 programs for disaster aid.

18 TITLE I—NATIONAL DISASTER

19 INSURANCE PROGRAM

20 SEC. 101. DISASTER INSURANCE PROGRAM.

21 The Robert T. Stafford Disaster Relief and Emer22 gency Assistance Act (42 U.S.C. 5121 et seq.) is amended

23 by adding at the end the following new title:
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1 ‘‘TITLE VIII—DISASTER

2 INSURANCE PROGRAM

3 ‘‘Subtitle A—Insurance Program

4 ‘‘SEC. 801. ESTABLISHMENT OF INSURANCE PROGRAM.

5 ‘‘The National Disaster Insurance Corporation estab6 lished under subtitle B shall establish and carry out an

7 insurance program under this subtitle to provide coverage

8 to States against certain losses and costs arising from dis9 asters, which shall be funded solely by State premiums

10 and payments and shall operate on an actuarially sound

11 basis.

12 ‘‘SEC. 802. TERMS AND CONDITIONS OF INSURANCE PRO13 GRAM.

14 ‘‘(a) IN GENERAL.—The Corporation shall establish

15 the terms and conditions for the provision of disaster in16 surance under the disaster insurance program of the Cor17 poration, which shall include—

18 ‘‘(1) the general terms and conditions of insur19 ance coverage;

20 ‘‘(2) limitations on the scope and amounts of

21 coverage provided;

22 ‘‘(3) the establishment, under section 804, of

23 appropriate annual premium charges;

24 ‘‘(4) appropriate loss deductibles; and
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1 ‘‘(5) the methods by which proved and approved

2 claims for losses shall be adjusted and paid.

3 ‘‘(b) OBJECTIVES.—In establishing the terms and

4 conditions under this section, the Corporation shall ensure

5 that the insurance program accomplishes the following ob6 jectives:

7 ‘‘(1) RECOVERY FROM DISASTERS.—The

8 amount of coverage provided under the program

9 shall be sufficient to provide State participants with

10 amounts adequate for recovery from disasters.

11 ‘‘(2) EQUITABLE DISTRIBUTION OF RISKS AND

12 COSTS.—The risks and costs of disasters shall be eq13 uitably distributed among the State participants.

14 ‘‘(3) PARTICIPATION.—Participation in the pro15 gram by all States shall be encouraged.

16 ‘‘(c) ASSISTANCE.—The terms and conditions of the

17 insurance program shall be established in consultation

18 with the Director of the Federal Emergency Management

19 Agency, the Disaster Insurance Advisory Committee under

20 section 826, and other relevant Federal agencies and shall

21 be effective only if approved by the Director and the Advi22 sory Committee.

23 ‘‘SEC. 803. COVERAGE.

24 ‘‘(a) IN GENERAL.—The insurance program shall

25 provide insurance coverage under this subtitle for each
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1 participant in the Corporation. The initial coverage avail2 able under the program shall take effect on October 1,

3 1995.

4 ‘‘(b) ELIGIBLE INSUREDS.—The insurance program

5 may provide insurance coverage only to participants and

6 each State shall be eligible to become a participant pursu7 ant to the requirements of section 821(d).

8 ‘‘(c) SCOPE OF COVERAGE.—The insurance program

9 may provide coverage only for the following losses and

10 costs to a participant that arise from a disaster:

11 ‘‘(1) LIFESAVING MEASURES.—Costs of per12 forming any work or services essential to saving lives

13 and protecting and preserving property or public

14 health and safety, including—

15 ‘‘(A) removing debris and wreckage;

16 ‘‘(B) conducting search and rescue, and

17 providing emergency medical care, emergency

18 mass care, emergency shelter, food, water, med19 icine, and other essential needs, including move20 ment of supplies or persons;

21 ‘‘(C) clearing roads and constructing tem22 porary bridges necessary to the performance of

23 emergency tasks and essential community serv24 ices;
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1 ‘‘(D) providing temporary facilities for

2 schools and other essential community services;

3 ‘‘(E) demolishing unsafe structures that

4 endanger the public;

5 ‘‘(F) warning of further risks and hazards;

6 ‘‘(G) disseminating of public information

7 and assistance regarding health and safety

8 measures; and

9 ‘‘(H) reducing immediate threats to life,

10 property, and public health and safety.

11 ‘‘(2) DISTRIBUTION OF FOOD AND MEDICAL AS12 SISTANCE.—Costs of distributing or rendering food,

13 medicine, and other consumable supplies, and other

14 services and assistance to victims of the disaster.

15 ‘‘(3) COORDINATION.—Costs of coordinating re16 lief efforts.

17 ‘‘(4) TECHNICAL ADVICE.—Costs of obtaining

18 technical advice regarding—

19 ‘‘(A) disaster management and control;

20 ‘‘(B) performing essential community serv21 ices; and

22 ‘‘(C) disseminating information regarding

23 public health and safety, issuing warnings of

24 risks and hazards.
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1 ‘‘(5) HAZARD MITIGATION.—Costs of conduct2 ing hazard mitigation measures that the Corporation

3 determines to be cost-effective and that will substan4 tially reduce the risk of future damage, hardship,

5 loss, or suffering in any area affected by the disas6 ter.

7 ‘‘(6) REPAIR AND REPLACEMENT OF DAMAGED

8 FACILITIES AND RESIDENCES.—Costs for the repair,

9 restoration, reconstruction, or replacement of facili10 ties (including public, private, and private nonprofit

11 facilities, and commercial and agricultural facilities)

12 and residences that are damaged or destroyed by the

13 disaster and for associated expenses incurred by the

14 owners of the facilities and residences, and losses

15 from damage or destruction to such facilities and

16 residences.

17 ‘‘(7) TEMPORARY HOUSING.—Costs of provid18 ing, by purchase or lease, temporary housing (in19 cluding unoccupied habitable dwellings), suitable

20 rental housing, mobile homes, or other readily fab21 ricated dwellings to persons who, as a result of the

22 disaster, require temporary housing.

23 ‘‘(8) TEMPORARY MORTGAGE AND RENTAL PAY24 MENTS.—Costs of providing assistance on a tem25 porary basis in the form of mortgage or rental pay-
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1 ments to or on behalf of individuals and families

2 who, as a result of financial hardship caused by the

3 disaster, have received written notice of disposses4 sion or eviction from a residence by reason of a fore5 closure of any mortgage or lien, cancellation of any

6 contract of sale, or termination of any lease, entered

7 into prior to such disaster, except that such costs

8 may not cover assistance provided for a duration ex9 ceeding the period of financial hardship or 18

10 months, whichever is less.

11 ‘‘(9) COUNSELING.—Costs of professional coun12 seling services to victims of the disaster to relieve

13 mental health problems caused or aggravated by the

14 disaster or its aftermath.

15 ‘‘(10) LOST REVENUE.—Loss to a participant

16 of a substantial portion of tax and other revenues,

17 but only if the participant demonstrates a need for

18 reimbursement of such losses to perform its govern19 mental functions.

20 ‘‘(11) TEMPORARY COMMUNICATIONS.—Costs

21 of establishing temporary communications systems

22 in the area affected by the disaster.

23 ‘‘(12) TEMPORARY PUBLIC TRANSPORTATION.—

24 Costs of providing temporary public transportation

25 service in the area affected by the disaster to meet
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1 emergency needs and to provide transportation to

2 governmental offices, supply centers, stores, post of3 fices, schools, major employment centers, and such

4 other places as may be necessary in order to enable

5 the community to resume its normal pattern of life

6 as soon as possible.

7 ‘‘(13) FIRE SUPPRESSION.—Costs of equip8 ment, supplies, and personnel for the suppression of

9 any fire on publicly or privately owned forest or

10 grassland.

11 ‘‘(14) LOAN AND ASSISTANCE PROGRAMS.—

12 Losses and costs associated with providing the fol13 lowing assistance:

14 ‘‘(A) SMALL BUSINESS LOANS.—Loans

15 for—

16 ‘‘(i) the repair, rehabilitation, or re17 placement of properties of small business

18 concerns that are damaged or destroyed as

19 a result of the disaster;

20 ‘‘(ii) refinancing mortgages or other

21 liens against residences and properties of

22 small business concerns that are destroyed

23 or substantially damaged as a result of the

24 disaster; and
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1 ‘‘(iii) assisting small business concerns

2 that suffer substantial economic injury as

3 a result of the disaster.

4 ‘‘(B) FARM LOANS.—Emergency loans to

5 persons whose farming, ranching, or aqua6 culture operations have been substantially af7 fected by a disaster.

8 ‘‘(C) HIGHWAY REPAIR.—Assistance for

9 the repair or reconstruction of highways, roads,

10 and trails that suffer serious damage as the re11 sult of the disaster.

12 ‘‘(D) INSURANCE OF LOANS FOR SINGLE

13 FAMILY HOMES.—Insurance for mortgages and

14 rehabilitation loans for 1- to 4-family residences

15 of mortgagors and borrowers whose residences

16 are destroyed or damaged as a result of the dis17 aster.

18 ‘‘(15) OTHER.—Any other costs or losses sus19 tained in providing disaster relief in the State, that

20 are determined by the Corporation to be appropriate

21 and which are not inconsistent with the provisions of

22 this subtitle.

23 ‘‘(d) PROHIBITED COVERAGE.—The insurance pro24 gram may not provide coverage for the following losses

25 and costs:
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1 ‘‘(1) NONDISASTER LOSSES.—Any losses or

2 costs not arising from a disaster.

3 ‘‘(2) FEDERAL FACILITIES.—Any losses or

4 costs sustained by or relating to Federal facilities.

5 ‘‘SEC. 804. ANNUAL PREMIUM CHARGES.

6 ‘‘(a) GENERAL AUTHORITY.—The Corporation shall

7 require each State, as a condition of participation in the

8 Corporation and coverage under the insurance program

9 during any fiscal year, to make a premium payment to

10 the Corporation for such fiscal year in an amount deter11 mined in accordance with this section. The Corporation

12 shall annually review the premium payments charged to

13 each participant and, if appropriate, adjust such payment

14 amounts.

15 ‘‘(b) ESTABLISHMENT OF CHARGES.—The premium

16 payments established under this section shall be—

17 ‘‘(1) established using generally accepted actu18 arial principles;

19 ‘‘(2) to the maximum extent practicable, based

20 on a consideration of the respective risks involved,

21 including differences in—

22 ‘‘(A) the risk of occurrence of disasters;

23 ‘‘(B) hazard mitigation measures in place,

24 including any disaster preparedness plan of the
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1 participant for mitigation, warning, emergency

2 operations, rehabilitation, and recovery;

3 ‘‘(C) anticipated covered losses and costs

4 in the event of a disaster; and

5 ‘‘(D) the extent to which other sources of

6 insurance or assistance will cover costs and

7 losses for types of property and activities cov8 ered in a State; and

9 ‘‘(3) adequate, on the basis of generally accept10 ed actuarial principles, to provide—

11 ‘‘(A) amounts in the reserve account of the

12 Corporation under section 823 for anticipated

13 claims; and

14 ‘‘(B) for any administrative and operating

15 expenses of the Corporation in carrying out the

16 insurance program.

17 ‘‘(c) CERTIFICATION OF PREMIUM CHARGES.—The

18 Corporation may not assess any premium charges estab19 lished under this section before the charges have been cer20 tified as actuarially sound by the Disaster Insurance Advi21 sory Commission established by section 826.

22 ‘‘(d) CREDIT FOR INITIAL CONTRIBUTIONS.—The

23 Corporation shall credit the amount of the payment made

24 by a State pursuant to section 821(d)(1) toward any pre25 mium charges under this section owed by the State.
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1 ‘‘SEC. 805. CLAIMS.

2 ‘‘(a) PROCEDURE.—The Corporation shall adjust and

3 pay all claims for proved and approved losses and costs

4 covered by insurance provided under this subtitle.

5 ‘‘(b) EFFECT OF DUPLICATIVE COVERAGE.—The

6 amount of any claim paid for losses or costs under the

7 insurance program may not include any amount for any

8 portion of such losses or costs covered by amounts pro9 vided under any other source of insurance or financial as10 sistance.

11 ‘‘(c) EFFECT OF FLOOD INSURANCE COVERAGE.—

12 ‘‘(1) REDUCTION OF FEDERAL ASSISTANCE.—If

13 a facility or residence located in a special flood haz14 ard area identified for more than 1 year by the Di15 rector pursuant to the National Flood Insurance Act

16 of 1968 is damaged or destroyed by flooding in a

17 disaster and such facility or residence is not covered

18 on the date of such flooding by flood insurance, the

19 amount of a claim for coverage under this subtitle

20 which would otherwise be paid under the insurance

21 program under this subtitle for costs of repair, res22 toration, reconstruction, and replacement of such fa23 cility or residence and associated expenses shall be

24 reduced in accordance with paragraph (2).
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1 ‘‘(2) AMOUNT OF REDUCTION.—The amount of

2 the reduction in a claim for a facility or residence

3 pursuant to paragraph (1) shall be the lesser of—

4 (A) the value of such facility or residence

5 on the date of the flood damage or destruction;

6 or

7 (B) the maximum amount of insurance

8 proceeds which would have been payable with

9 respect to such facility or residence if such fa10 cility had been covered by flood insurance under

11 the National Flood Insurance Act of 1968 on

12 such date.

13 ‘‘(3) EXCEPTION.—Paragraphs (1) and (2)

14 shall not apply to a private nonprofit facility or resi15 dence that is not covered by flood insurance solely

16 because of the local government’s failure to partici17 pate in the flood insurance program under the Na18 tional Flood Insurance Act of 1968.

19 ‘‘(d) CAUSE OF ACTION.—If the Corporation dis20 allows a claim or the claimant refuses to accept the

21 amount allowed upon any claim, the claimant may, before

22 the expiration of the 1-year period beginning upon the

23 claimant’s receipt of written notice of the disallowance or

24 partial disallowance of the claim, institute an action on

25 such claim against the Corporation in the United States
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1 District Court for the District of Columbia. Original exclu2 sive jurisdiction is hereby conferred upon such Court to

3 hear and determine such action without regard to the

4 amount in controversy.

5 ‘‘Subtitle B—National Disaster In6 surance Corporation and Disas7 ter Insurance Advisory Commis8 sion

9 ‘‘SEC. 821. NATIONAL DISASTER INSURANCE CORPORA10 TION.

11 ‘‘(a) ESTABLISHMENT.—There is authorized to be es12 tablished a body corporate to be known as the National

13 Disaster Insurance Corporation, which shall be subject to

14 the provisions of this title. The Corporation shall not be

15 an agency or establishment of the Federal Government.

16 The principal office of the Corporation shall be located in

17 the District of Columbia or the metropolitan area thereof.

18 ‘‘(b) FUNCTION.—The purpose of the Corporation

19 shall be to carry out the insurance program under subtitle

20 A.

21 ‘‘(c) GOVERNANCE.—

22 ‘‘(1) BOARD OF DIRECTORS.—The Corporation

23 shall be under the direction of a board of directors

24 who shall be elected by the participants in the Cor25 poration. Members of the board shall not be consid-
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1 ered, by reason of such membership, to be employees

2 of the Federal Government.

3 ‘‘(2) INITIAL BOARD.—Except as otherwise pro4 vided by the Corporation pursuant to section

5 822(2)—

6 ‘‘(A) the board shall be composed of 7

7 members, selected by a majority of the partici8 pants in the Corporation through an election (i)

9 that shall take place at the initial organiza10 tional meeting of the Corporation held pursuant

11 to subsection (e)(1), and (ii) in which each of

12 the participants shall have 1 vote; and

13 ‘‘(B) the term of each member of the

14 board shall be 5 years.

15 ‘‘(d) PARTICIPANTS.—A State shall be considered as

16 a participant in the Corporation for purposes of this title

17 only if the State complies with the following requirements:

18 ‘‘(1) INITIAL CONTRIBUTION.—The State has

19 made a payment to the Corporation (or to the Direc20 tor pursuant to subsection (e)(2)) in an amount

21 equal to 1 percent of the aggregate amount of Fed22 eral financial assistance provided, during fiscal years

23 1986 through 1995, to the State (or to or on behalf

24 of persons or property located in the State) for dis25 aster relief relating to a major disaster or emergency
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1 declared under this Act, as determined by the Direc2 tor. For purposes of this paragraph, the term ‘Fed3 eral financial assistance’ shall include any grant,

4 payment, subsidy, or loan provided by any agency

5 of the Federal Government, and the amount of as6 sistance provided under a loan shall be considered

7 to be an amount equal to the principal obligation

8 under the loan.

9 ‘‘(2) PAYMENT OF PREMIUM CHARGES.—The

10 State has paid any premium charges assessed for

11 such State pursuant to section 804, in accordance

12 with the requirements established by the Corpora13 tion for payment of such charges.

14 For purposes of the organizational meeting under

15 subsection (e)(1), any State that complies with paragraph

16 (1) of this subsection shall be considered as a participant.

17 ‘‘(e) INITIAL ORGANIZATION.—

18 ‘‘(1) ORGANIZATIONAL MEETING.—The Direc19 tor shall call an organizational meeting for the Cor20 poration to be held not later than August 31, 1995,

21 at which the participants shall elect the initial mem22 bers of the board of directors and shall take such

23 other actions as may be necessary to establish the

24 Corporation in accordance with this title. The Direc25 tor shall notify each State of the meeting and the
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1 purposes of the meeting and shall organize and chair

2 the meeting.

3 ‘‘(2) COLLECTION OF INITIAL CONTRIBU4 TIONS.—Before the organization of the Corporation

5 pursuant to paragraph (1), the Director shall collect

6 payments under subsection (d)(1) on behalf of the

7 Corporation.

8 ‘‘(f) OWNERSHIP.—The Corporation shall be pri9 vately owned by the participants in the insurance pro10 gram. Obligations and indebtedness of the Corporation

11 shall not be considered obligations and indebtedness of the

12 Federal Government or guaranteed by the Federal Gov13 ernment.

14 ‘‘(g) OFFICERS AND EMPLOYEES.—The Corporation

15 may appoint and hire officers and employees at the discre16 tion of the Corporation, but may not pay any officer or

17 employee at a rate exceeding the rate of basic pay payable

18 for level IV of the Executive Schedule. Any such officers

19 and employees shall not be considered officers or employ20 ees of the Federal Government and shall not be subject

21 to the provisions of title 5, United States Code.

22 ‘‘(h) POWERS.—The Corporation shall have the

23 power—

24 ‘‘(1) to adopt, alter, and use a corporate seal;
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1 ‘‘(2) to make and enforce contracts and agree2 ments appropriate to carry out this title;

3 ‘‘(3) to settle, adjust, compromise, and release

4 claims against the corporation;

5 ‘‘(4) to sue and be sued;

6 ‘‘(5) to acquire, hold, and own, and deal with

7 and dispose of real and personal property to the ex8 tent appropriate to carry out this title;

9 ‘‘(6) to have succession until dissolved by Act of

10 Congress; and

11 ‘‘(7) to exercise all other lawful powers nec12 essary or appropriate to carry out this title.

13 ‘‘SEC. 822. STRUCTURE AND OPERATIONS.

14 ‘‘After consultation with the Director and other ap15 propriate Federal agencies, the Corporation shall establish

16 appropriate guidelines for the structure and operation of

17 the Corporation and the insurance program, which—

18 ‘‘(1) shall include standards relating to the va19 cancies, bylaws, and powers of the board;

20 ‘‘(2) may include provisions, applicable only

21 after October 1, 1996, establishing the composition

22 of the board and the terms of office of the members

23 of the board other than as provided for in section

24 821(c)(2); and
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1 ‘‘(3) shall include a minimum capital require2 ment pursuant to section 823(d).

3 ‘‘SEC. 823. RESERVE ACCOUNT.

4 ‘‘(a) ESTABLISHMENT.—The Corporation shall estab5 lish and manage a reserve account for the operation of

6 the insurance program.

7 ‘‘(b) CREDITS.—The reserve account of the Corpora8 tion shall be credited with—

9 ‘‘(1) any premium charges under section 804

10 collected by the Corporation;

11 ‘‘(2) any amounts appropriated for the Cor12 poration pursuant to section 825(a); and

13 ‘‘(3) any interest earned on investments of the

14 Corporation pursuant to subsection (c)(2).

15 ‘‘(c) USE.—Amounts in the reserve account of the

16 Corporation shall be available—

17 ‘‘(1) for payment of qualifying claims under the

18 insurance program of participants, consistent with

19 the terms and conditions established under section

20 802(a);

21 ‘‘(2) to the extent that the Corporation deter22 mines that such amounts are in excess of current

23 needs and the amount required to be held in the re24 serve account pursuant to subsection (d), for invest25 ment as the Corporation considers appropriate;
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1 ‘‘(3) for covering the costs of the Corporation

2 and administering and operating the insurance pro3 gram; and

4 ‘‘(4) for covering travel expenses of members of

5 the Disaster Insurance Advisory Commission estab6 lished by section 826.

7 ‘‘(d) MINIMUM CAPITAL REQUIREMENT.—

8 ‘‘(1) IN GENERAL.—The Corporation shall at

9 all times maintain amounts in the reserve account

10 equal to or in excess of the applicable minimum cap11 ital level determined under paragraph (2).

12 ‘‘(2) ESTABLISHMENT OF CAPITAL LEVELS.—

13 The Corporation shall establish a series of minimum

14 capital levels appropriate to ensure sufficient capital15 ization of the Corporation based on the nature and

16 extent of the underwriting, investment, and other

17 risks assumed by the Corporation. The capital levels

18 shall not be effective unless approved by the Direc19 tor.

20 ‘‘(e) TAX-EXEMPT STATUS.—Any amounts deposited

21 in the reserve account, including income derived from the

22 investment of amounts under subsection (c)(2), shall be

23 exempt from all taxation now or hereafter imposed by the

24 United States, or by any State, county, municipality, or

25 local taxing authority.
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1 ‘‘SEC. 824. BORROWING AUTHORITY.

2 ‘‘(a) IN GENERAL.—To the extent that the amounts

3 in the reserve fund are insufficient to pay claims and ex4 penses of the Corporation and maintain amounts in ac5 cordance with the requirements under section 823(d), the

6 Corporation may issue to the Secretary of the Treasury

7 notes and other obligations to cover the insufficiency.

8 ‘‘(b) TERMS OF BORROWING.—The Secretary may

9 purchase obligations issued under subsection (a) only if

10 the President determines that the financial condition of

11 the Corporation is adequate to ensure repayment of the

12 obligations. Such obligations shall have terms and condi13 tions as determined by the Secretary of the Treasury.

14 ‘‘SEC. 825. INITIAL FEDERAL CONTRIBUTION AND PROHIBI15 TION OF ADDITIONAL FEDERAL ASSISTANCE.

16 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—For

17 purposes of carrying out this title, there is authorized to

18 be appropriated to the Corporation an amount equal to

19 the difference between—

20 ‘‘(1) the sum of any balances remaining, at the

21 end of September 30, 1995, in the Disaster Relief

22 appropriation and the Disaster Assistance Direct

23 Loan Program Account of the Federal Emergency

24 Management Agency; and

25 ‘‘(2) the amounts determined by the Director to

26 be necessary to reserve from such appropriation and
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1 in such Account for purposes of providing assistance

2 pursuant to any major disaster or emergency that

3 commences or occurs (or is declared or determined

4 to have commenced or occurred) on or before Sep5 tember 30, 1995.

6 ‘‘(b) PROHIBITION OF FEDERAL ASSISTANCE.—Ex7 cept as provided in subsection (a) and section 824, no

8 Federal funds may be authorized, appropriated, or used

9 to fund any activity of the Corporation.

10 ‘‘SEC. 826. DISASTER INSURANCE ADVISORY COMMISSION.

11 ‘‘(a) ESTABLISHMENT.—There is hereby established

12 a commission to be known as the Disaster Insurance Advi13 sory Commission (in this section referred to as the ‘‘Com14 mission’’).

15 ‘‘(b) MEMBERSHIP.—

16 ‘‘(1) APPOINTMENT.—The Commission shall be

17 composed of 11 members appointed by the Presi18 dent, in consultation with the Director. Of the mem19 bers of the Commission, not less than 6 shall be in20 dividuals who have been nominated for such appoint21 ment by States that are participants in the Corpora22 tion, except that (to the extent possible) not more

23 than one such member may be appointed to the

24 Commission pursuant to the nomination of any sin25 gle State. Each member of the Commission shall
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1 have experience or expertise in at least one of the

2 areas described in subparagraphs (A) through (D) of

3 paragraph (2).

4 ‘‘(2) EXPERTISE.—The membership of the

5 Commission shall, at all times, include—

6 ‘‘(A) not less than 1 individual who has ex7 perience or expertise in actuarial issues relating

8 to disaster insurance;

9 ‘‘(B) not less than 1 individual who has ex10 perience or expertise in the management of in11 surance companies;

12 ‘‘(C) not less than 1 individual who has ex13 perience or expertise in the regulation of insur14 ance companies; and

15 ‘‘(D) not less than 1 individual who has

16 experience or expertise in disaster relief.

17 ‘‘(3) TERMS.—

18 ‘‘(A) IN GENERAL.—Each member of the

19 Commission shall be appointed for a term of 4

20 years, except as provided in subparagraph (B).

21 ‘‘(B) INITIAL APPOINTEES.—As designated

22 by the President at the time of appointment, of

23 the members first appointed to the Commis24 sion—
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1 ‘‘(i) 5 shall be appointed for terms of

2 6 years; and

3 ‘‘(ii) 6 shall be appointed for terms of

4 4 years.

5 ‘‘(4) CHAIRPERSON.—The President shall des6 ignate a chairperson of the Commission from among

7 members appointed to the Commission.

8 ‘‘(c) PROHIBITION OF PAY.—Members of the Com9 mission shall serve without pay.

10 ‘‘(d) TRAVEL EXPENSES.—Each member of the

11 Commission shall receive travel expenses, including per

12 diem in lieu of subsistence, in accordance with sections

13 5702 and 5703 of title 5, United States Code, except that

14 such expenses shall be paid by the Corporation.

15 ‘‘(e) DUTIES.—The Commission shall—

16 ‘‘(1) in coordination with the Director, assist

17 the Corporation in establishing the terms and condi18 tions of the insurance program under subtitle A, re19 view such terms and conditions, and approve or dis20 approve such terms and conditions as appropriate to

21 carry out this title; and

22 ‘‘(2) review the annual premium charges estab23 lished under section 804 by the Corporation to de24 termine whether such charges are established in

25 compliance with the requirements of such section,
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1 and if so, certify such compliance to the Corpora2 tion.

3 ‘‘(f) CONTINUATION.—Section 14(a)(2)(B) of the

4 Federal Advisory Committee Act (5 U.S.C. App.; relating

5 to the termination of advisory committees) shall not apply

6 to the Commission.

7 ‘‘SEC. 827. GAO AUDIT.

8 ‘‘(a) INITIAL AUDIT.—As soon as practicable after

9 October 1, 1996, the Comptroller General of the United

10 States shall audit the activities of the Corporation and the

11 Disaster Insurance Advisory Commission established by

12 section 826 to ensure that such entities are complying

13 with the provisions of this title.

14 ‘‘(b) SUCCESSIVE AUDITS.—After the completion of

15 the audit described in subsection (a), the Comptroller Gen16 eral shall conduct similar audits not less than once every

17 3 years.

18 ‘‘(c) REPORTS.—The Comptroller General shall sub19 mit reports of the audits performed under this section to

20 the Congress.

21 ‘‘Subtitle C—General Provisions

22 ‘‘SEC. 851. DEFINITIONS.

23 ‘‘For purposes of this title:

24 ‘‘(1) BOARD.—The term ‘board’ means the

25 board of directors of the Corporation.
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1 ‘‘(2) CORPORATION.—The term ‘Corporation’

2 means the National Disaster Insurance Corporation.

3 ‘‘(3) DIRECTOR.—The term ‘Director’ means

4 the Director of the Federal Emergency Management

5 Agency.

6 ‘‘(4) DISASTER.—The term ‘disaster’ means

7 any natural catastrophe (including any hurricane,

8 tornado, storm, high water, winddriven water, tidal

9 wave, tsunami, earthquake, volcanic eruption, land10 slide, mudslide, snowstorm, or drought), or, regard11 less of cause, any fire, flood, serious accident, or ex12 plosion, in or affecting any State or part of a State.

13 ‘‘(5) INSURANCE PROGRAM.—The term ‘insur14 ance program’ means the program established under

15 this title by the Corporation for disaster insurance

16 coverage.’’.

17 TITLE II—TERMINATION OF FED18 ERAL DISASTER LOAN PRO19 GRAMS

20 SEC. 201. TERMINATION OF SMALL BUSINESS ADMINISTRA21 TION DISASTER LOAN PROGRAM.

22 (a) IN GENERAL.—The Administrator of the Small

23 Business Administration may not make any loan, or enter

24 into an agreement to participate in any loan, under section
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1 7(b) of the Small Business Act after the effective date of

2 this title.

3 (b) SAVINGS PROVISION.—Nothing in this section

4 may be construed to affect the validity of any right, duty,

5 or obligation of the United States or any other person

6 arising under or pursuant to any loan or other agreement

7 entered into under section 7(b) of the Small Business Act

8 before the effective date of this title.

9 (c) AUTHORITY TO DISCHARGE OBLIGATIONS.—In

10 discharging obligations of the Small Business Administra11 tion, and collecting loans and other obligations owed to

12 the Administration, under section 7(b) of the Small Busi13 ness Act, the Administrator of the Small Business Admin14 istration is authorized to exercise any authority provided

15 to the Administrator under the Small Business Act, as in

16 effect on the day before the effective date of this title.

17 (d) CONFORMING AMENDMENTS.—

18 (1) REPEALS.—The following provisions of the

19 Small Business Act (15 U.S.C. 631 et seq.) are re20 pealed:

21 (A) Section 2(g).

22 (B) Section 3(j).

23 (C) Section 3(k).

24 (D) Paragraphs (8) and (9) of section

25 5(b).
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1 (E) Section 7(b).

2 (F) Paragraphs (2) through (7) of section

3 7(c).

4 (G) Section 7(f).

5 (H) Section 23.

6 (2) OTHER CONFORMING AMENDMENTS.—The

7 Small Business Act (15 U.S.C. 631 et seq.) is

8 amended—

9 (A) in section 4(c)(1)—

10 (i) by striking ‘‘are hereby estab11 lished’’ and inserting ‘‘is established’’; and

12 (ii) by striking ‘‘the following re13 volving funds:’’ and all that follows

14 through ‘‘; and (B)’’;

15 (B) in section 4(c)(2) by striking ‘‘(A) pur16 suant to’’ and all that follows through ‘‘and

17 (B)’’;

18 (C) in section 4(c)(3) by striking ‘‘the

19 funds’’ and inserting ‘‘the fund’’;

20 (D) in section 4(c)(4) by striking ‘‘each of

21 the funds’’ both places it appears and inserting

22 ‘‘the fund’’;

23 (E) in section 4(c)(5)(A)—

24 (i) by striking ‘‘the revolving funds’’

25 and inserting ‘‘the revolving fund’’; and
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1 (ii) by striking ‘‘out of the funds’’ and

2 inserting ‘‘out of the fund’’;

3 (F) in section 4(c)(5)(B)(i) by striking

4 ‘‘the funds’’ and inserting ‘‘the fund’’;

5 (G) in section 4(c)(5)(B)(ii) by striking

6 ‘‘or are made from amounts appropriated from

7 the disaster loan fund after October 1, 1980 or

8 are made from repayments of principal of loans

9 made from funds appropriated to the disaster

10 fund,’’;

11 (H) in section 5(b)(5) by striking ‘‘and

12 7(b)’’; and

13 (I) in section 10(a) by striking ‘‘disaster

14 relief,’’.

15 SEC. 202. REPEAL OF CONSOLIDATED FARM SERVICE

16 AGENCY EMERGENCY LOAN PROGRAM.

17 (a) IN GENERAL.—Subtitle C of the Consolidated

18 Farm and Rural Development Act (7 U.S.C. 1961–1970)

19 is amended by striking sections 321, 322, 323, 324, 326,

20 and 329.

21 (b) CONFORMING AMENDMENTS.—(1) Section 327 of

22 the Consolidated Farm and Rural Development Act (7

23 U.S.C. 1967) is amended—

24 (A) by striking ‘‘(a)’’; and

25 (B) by striking subsection (b).
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1 (2) Section 309(g)(1) of the Consolidated Farm and

2 Rural Development Act (7 U.S.C. 1929(g)(1)) is amended

3 by inserting ‘‘(as in effect on September 30, 1995)’’ after

4 ‘‘326’’.

5 (3) Section 343(a)(10) of the Consolidated Farm and

6 Rural Development Act (7 U.S.C. 1991(a)(10)) is amend7 ed by striking ‘‘emergency loan (EM) under section 321,’’.

8 (4) Section 371(b) of the Consolidated Farm and

9 Rural Development Act (7 U.S.C. 2008f(b)) is amended—

10 (A) by adding ‘‘and’’ at the end of paragraph

11 (1);

12 (B) by striking ‘‘; and’’ at the end of paragraph

13 (2) and inserting a period; and

14 (C) by striking paragraph (3).

15 (c) TRANSITION RULE.—The amendments made by

16 this section shall not be construed to permit the violation

17 of any contract entered into before the effective date of

18 this title.

19 SEC. 203. REPEAL OF EMERGENCY RELIEF PROGRAM FOR

20 REPAIR OF HIGHWAYS.

21 Section 125 of title 23, United States Code, is re22 pealed.
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1 SEC. 204. TERMINATION OF HUD MORTGAGE INSURANCE

2 PROGRAMS FOR DISASTER VICTIMS.

3 (a) SINGLE FAMILY HOME MORTGAGE INSUR4 ANCE.—Section 203(h) of the National Housing Act (12

5 U.S.C. 1709(h)) is amended by adding at the end the fol6 lowing new sentence: ‘‘Notwithstanding any other provi7 sion of law (including the provisions of the head entitled

8 ‘‘FEDERAL HOUSING ADMINISTRATION’’ of chapter 7 of

9 the Emergency Supplemental Appropriations Act of 1994

10 (Public Law 103–211; 108 Stat. 12)), no mortgage may

11 be insured under this subsection after the effective date

12 of title II of the States’ Disaster Responsibility Act, except

13 pursuant to a commitment to insure entered into before

14 such date.’’.

15 (b) INSURANCE FOR REHABILITATION LOANS.—Sec16 tion 203(k)(6) of the National Housing Act (12 U.S.C.

17 1709(h)) is amended by adding at the end the following

18 new sentence: ‘‘Notwithstanding any other provision of

19 law (including the provisions of the head entitled ‘‘FED20 ERAL HOUSING ADMINISTRATION’’ of chapter 7 of the

21 Emergency Supplemental Appropriations Act of 1994

22 (Public Law 103–211; 108 Stat. 12)), no mortgage may

23 be insured pursuant to this paragraph after the effective

24 date of title II of the States’ Disaster Responsibility Act,

25 except pursuant to a commitment to insure entered into

26 before such date.’’.
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1 SEC. 205. APPLICABILITY.

2 (a) EFFECTIVE DATE OF AMENDMENTS.—The

3 amendments under this title shall be made on October 1,

4 1995, and shall apply on and after such date, except to

5 the extent provided in subsection (b).

6 (b) INAPPLICABILITY TO DISASTERS DECLARED BE7 FORE EFFECTIVE DATE.—The provisions of law amended

8 by this title, as in effect on the day before the date re9 ferred to in subsection (a), shall continue to apply with

10 respect to any major disaster, natural disaster, disaster,

11 emergency, or catastrophic failure that commences or oc12 curs (or is declared or determined to have commenced or

13 occurred), before the date referred in subsection (a).

14 TITLE III—FEDERAL PROGRAM

15 FOR REIMBURSABLE DISAS16 TER RELIEF AND EMER17 GENCY ASSISTANCE

18 SEC. 301. AMENDMENT OF ROBERT T. STAFFORD DISASTER

19 RELIEF AND EMERGENCY ASSISTANCE ACT.

20 Except as otherwise expressly provided, whenever in

21 this title an amendment or repeal is expressed in terms

22 of an amendment to, or repeal of, a section or other provi23 sion, the reference shall be considered to be made to a

24 section or other provision of The Robert T. Stafford Dis25 aster Relief and Emergency Assistance Act (42 U.S.C.

26 5121 et seq.).
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1 SEC. 302. FINDINGS AND DECLARATIONS.

2 (a) FINDINGS.—Section 101(a) (42 U.S.C. 5121

3 note) is amended by striking ‘‘The’’ and inserting ‘‘FIND4 INGS.—Recognizing the importance of reducing the Fed5 eral deficit and allowing the individual States to regain

6 responsibility for management of activities within their

7 borders, the’’.

8 (b) DECLARATIONS.—Section 101(b) (42 U.S.C.

9 5121 note) is amended—

10 (1) by striking ‘‘an orderly’’ and all that follows

11 through ‘‘their’’ and inserting ‘‘a mechanism which

12 will allow affected States to carry out their’’;

13 (2) by striking ‘‘such’’;

14 (3) by redesignating paragraphs (1) through

15 (6) as paragraphs (2) through (7), respectively;

16 (4) by inserting before paragraph (2) (as so re17 designated) the following:

18 ‘‘(1) establishing a private corporation which

19 will make available insurance to assist the States in

20 meeting their responsibilities for disaster relief;’’;

21 (5) in paragraph (2) (as so redesignated) by

22 striking ‘‘and broadening’’;

23 (6) in paragraph (5) (as so redesignated) by

24 striking ‘‘supplement or’’; and

25 (7) in paragraph (7) (as so redesignated) by in26 serting ‘‘reimbursable’’ before ‘‘assistance’’.
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1 SEC. 303. WAIVER OF ADMINISTRATIVE CONDITIONS.

2 Section 301 (42 U.S.C. 5141) is amended by striking

3 ‘‘Any’’ and inserting ‘‘Except as otherwise provided in this

4 title, any’’.

5 SEC. 304. EMERGENCY SUPPORT TEAMS.

6 Section 303 (42 U.S.C. 5144) is amended by striking

7 ‘‘on either’’ and all that follows through ‘‘President,’’.

8 SEC. 305. REIMBURSEMENT.

9 Section 304 (42 U.S.C. 5147) is amended—

10 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

11 and

12 (2) by striking ‘‘under this Act’’ and all that

13 follows through the period at the end of the first

14 sentence and inserting ‘‘made under this Act with

15 respect to a major disaster or emergency by the

16 State or States affected by the disaster or emer17 gency.’’.

18 SEC. 306. PERFORMANCE OF SERVICES.

19 Section 306(b) (42 U.S.C. 5149(b)) is amended—

20 (1) by inserting before the first comma ‘‘with

21 respect to a major disaster or emergency’’; and

22 (2) by striking ‘‘. Such obligations’’ and insert23 ing a semicolon and the following:

24 ‘‘if the Federal Government has entered into an agreement

25 with the State or States affected by the major disaster

26 or emergency for reimbursement of all costs incurred by
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1 the United States with respect to such compensation, em2 ployment, and obligations. Such obligations’’.

3 SEC. 307. REIMBURSEMENT AGREEMENTS AND CONDI4 TIONS.

5 Section 311 (42 U.S.C. 5154) is amended to read as

6 follows:

7 ‘‘SEC. 311. REIMBURSEMENT AGREEMENTS AND CONDI8 TIONS.

9 ‘‘(a) REPAYMENT.—Assistance may only be provided

10 under this Act with respect to damage caused by a major

11 disaster or emergency within the borders of a State if a

12 State has agreed to reimburse the United States for all

13 expenses incurred by the United States in providing such

14 assistance. Such assistance, including a loan or advance

15 made under section 319, shall be repaid to the United

16 States.

17 ‘‘(b) INTEREST.—Assistance provided under this Act

18 with respect to which a State agrees to reimburse the

19 United States for all expenses incurred in providing such

20 assistance, including loans and advances made under this

21 Act, shall bear interest at a rate determined by the Sec22 retary of the Treasury, taking into consideration the cur23 rent market yields on outstanding marketable obligations

24 of the United States with remaining periods of maturity
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1 comparable to the reimbursement period of the reimburs2 able assistance provided.

3 ‘‘(c) REGULATIONS.—The President shall issue regu4 lations describing the terms and conditions under which

5 any reimbursable assistance, loan, or advance authorized

6 by this Act may be provided.’’.

7 SEC. 308. TREATMENT OF ASSISTANCE.

8 Section 312 (42 U.S.C. 5155) is amended to read as

9 follows:

10 ‘‘SEC. 312. TREATMENT OF ASSISTANCE.

11 ‘‘Federal major disaster and emergency assistance

12 provided to individuals and families under this Act, and

13 comparable disaster assistance provided by States, local

14 governments, and disaster assistance organizations, shall

15 not be considered as income or a resource when determin16 ing eligibility for or benefit levels under federally funded

17 income assistance or resource-tested benefit programs.’’.

18 SEC. 309. LIABILITY.

19 Section 317 (42 U.S.C. 5160) is repealed.

20 SEC. 310. ADVANCE OF STATE EXPENDITURES.

21 Section 319 (42 U.S.C. 5162) is amended to read as

22 follows:

23 ‘‘SEC. 319. ADVANCE OF STATE EXPENDITURES.

24 ‘‘The President may lend or advance to a State as25 sistance for which the State is responsible under section
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1 403 of this Act in any case in which the President deter2 mines that—

3 ‘‘(1) the damages caused by a major disaster

4 are so overwhelming and severe that it is not pos5 sible for the State to assume immediately its finan6 cial responsibility under this Act; and

7 ‘‘(2) the State has the ability to repay any such

8 loans or advances.’’.

9 SEC. 311. PROCEDURE FOR DECLARATION OF MAJOR DIS10 ASTER.

11 Section 401 (42 U.S.C. 5170) is amended—

12 (1) by inserting ‘‘reimbursable’’ after ‘‘Fed13 eral’’;

14 (2) by inserting before the period at the end of

15 the second sentence ‘‘and shall enter into an agree16 ment to reimburse the United States for all expenses

17 incurred in providing assistance under this Act with

18 respect to the disaster’’; and

19 (3) by striking ‘‘cost-sharing’’.

20 SEC. 312. GENERAL FEDERAL DISASTER ASSISTANCE.

21 Section 402 (42 U.S.C. 5170a) is amended—

22 (1) by striking ‘‘In’’ and inserting ‘‘(a) GEN23 ERAL AUTHORITY.—Subject to subsection (b), in’’;

24 (2) by striking ‘‘, with or without reimburse25 ment,’’; and
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1 (3) by adding at the end the following:

2 ‘‘(b) REIMBURSEMENT AGREEMENT.—Assistance

3 may only be provided under this section if the affected

4 State agrees to reimburse the United States for all ex5 penses incurred in providing such assistance.’’.

6 SEC. 313. ESSENTIAL DISASTER ASSISTANCE.

7 Section 403 (42 U.S.C. 5170b) is amended—

8 (1) in subsection (a) by striking ‘‘Federal agen9 cies’’ and inserting ‘‘Subject to subsection (b), Fed10 eral agencies’’;

11 (2) by striking subsection (b) and inserting the

12 following:

13 ‘‘(b) REIMBURSEMENT AGREEMENT.—Assistance

14 may only be provided under this section if the affected

15 State agrees to reimburse the United States for all ex16 penses incurred in providing such assistance.’’;

17 (3) in subsection (c)(3) by striking ‘‘out of

18 funds made available to carry out this Act’’ and in19 serting ‘‘by the State’’;

20 (4) by striking paragraph (4);

21 (5) by redesignating paragraphs (5) and (6) of

22 subsection (c) as paragraphs (4) and (5), respec23 tively; and
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1 (6) in subsection (c)(4) (as so redesignated) by

2 striking ‘‘Not later than’’ and all that follows

3 through ‘‘1988, the’’ and inserting ‘‘The’’.

4 SEC. 314. HAZARD MITIGATION.

5 Section 404 (42 U.S.C. 5170c) is repealed.

6 SEC. 315. REPAIR, RESTORATION, AND REPLACEMENT OF

7 DAMAGED FACILITIES.

8 Section 406 (42 U.S.C. 5172) is amended to read as

9 follows:

10 ‘‘SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF

11 DAMAGED FACILITIES.

12 ‘‘The President may provide assistance to a State—

13 ‘‘(1) for the repair, restoration, reconstruction,

14 or replacement of a public facility which is damaged

15 or destroyed by a major disaster and for associated

16 expenses incurred by the State or a local government

17 thereof; or

18 ‘‘(2) for the repair, restoration, reconstruction,

19 or replacement of a private nonprofit facility dam20 aged or destroyed by a major disaster and for asso21 ciated expenses incurred by the owner or operator of

22 such facility;

23 if the State agrees to reimburse the United States for all

24 expenses incurred in providing such assistance.’’.
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1 SEC. 316. DEBRIS REMOVAL.

2 Section 407 (42 U.S.C. 5173) is amended—

3 (1) in subsection (a)(2) by striking ‘‘make

4 grants’’ and all that follows through ‘‘facility’’ and

5 inserting ‘‘provide assistance to any State’’;

6 (2) by striking the period at the end of sub7 section (a) and inserting a semicolon and the follow8 ing:

9 ‘‘if the State agrees to reimburse the United States for

10 all expenses incurred in providing such assistance.’’;

11 (3) in subsection (b) by striking ‘‘or local gov12 ernment’’; and

13 (4) by striking subsection (d).

14 SEC. 317. TEMPORARY HOUSING ASSISTANCE.

15 Section 408 (42 U.S.C. 5174) is amended to read as

16 follows:

17 ‘‘SEC. 408. TEMPORARY HOUSING ASSISTANCE.

18 ‘‘(a) PROVISION OF TEMPORARY HOUSING.—The

19 President may provide assistance to a State for the provi20 sion of temporary housing (including unoccupied habitable

21 dwellings), suitable rental housing, mobile homes, or other

22 readily fabricated dwellings to persons who, as a result

23 of a major disaster, require temporary housing if the State

24 agrees to reimburse the United States for all expenses in25 curred in providing such assistance.

26 ‘‘(b) MOBILE HOME SITE.—
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1 ‘‘(1) IN GENERAL.—Any mobile home or other

2 readily fabricated dwelling provided under this sec3 tion shall whenever possible be located on a site

4 which—

5 ‘‘(A) is provided by the State or local gov6 ernment; and

7 ‘‘(B) has utilities provided by the State or

8 local government, by the owner of the site, or

9 by the occupant who was displaced by the

10 major disaster.

11 ‘‘(2) OTHER SITES.—Mobile homes and other

12 readily fabricated dwellings may be located on sites

13 provided by the President if the President deter14 mines that such sites would be more economical or

15 accessible than sites described in paragraph (1).’’.

16 SEC. 318. MINIMUM STANDARDS FOR PUBLIC AND PRIVATE

17 STRUCTURES.

18 Section 409 (42 U.S.C. 5175) is repealed.

19 SEC. 319. UNEMPLOYMENT ASSISTANCE.

20 Section 410 (42 U.S.C. 5177) is amended—

21 (1) in subsection (a) by inserting before the pe22 riod at the end ‘‘and ensure that the United States

23 will be reimbursed by the States for all expenses in24 curred in providing assistance under this sub25 section’’; and
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1 (2) in subsection (b)(2) by inserting before the

2 period at the end ‘‘if the State agrees to reimburse

3 the United States for all expenses incurred in pro4 viding such assistance’’.

5 SEC. 320. INDIVIDUAL AND FAMILY GRANT PROGRAMS.

6 Section 411 (42 U.S.C. 5178) is repealed.

7 SEC. 321. CRISIS COUNSELING ASSISTANCE AND TRAINING.

8 Section 416 (42 U.S.C. 5183) is amended—

9 (1) by striking ‘‘or local agencies or private

10 mental health organizations to provide’’ and insert11 ing ‘‘agencies to provide (or to contract with local

12 agencies or private mental health organizations for

13 the provision of)’’; and

14 (2) by inserting before the period at the end ‘‘if

15 the State agrees to reimburse the United States for

16 all expenses incurred in providing such services and

17 assistance’’.

18 SEC. 322. COMMUNITY DISASTER LOANS.

19 Section 417 (42 U.S.C. 5184) is repealed.

20 SEC. 323. EMERGENCY COMMUNICATIONS.

21 Section 418 (42 U.S.C. 5185) is amended by insert22 ing before the period at the end ‘‘if the State agrees to

23 reimburse the United States for all expenses incurred in

24 providing assistance under this section’’.
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1 SEC. 324. EMERGENCY PUBLIC TRANSPORTATION.

2 Section 419 (42 U.S.C. 5186) is amended by insert3 ing before the period at the end ‘‘if the State agrees to

4 reimburse the United States for all expenses incurred in

5 providing assistance under this section’’.

6 SEC. 325. FIRE SUPPRESSION.

7 Section 420 (42 U.S.C. 5187) is amended—

8 (1) by striking the section heading and ‘‘SEC.

9 420.’’ and inserting the following:

10 ‘‘SEC. 420. FIRE SUPPRESSION ASSISTANCE.’’

11 (2) by striking ‘‘, including grants,’’; and

12 (3) by inserting before the period at the end ‘‘if

13 the State agrees to reimburse the United States for

14 all expenses incurred in providing assistance under

15 this section’’.

16 SEC. 326. TIMBER SALE CONTRACTS.

17 Section 421(d) (42 U.S.C. 5188(d)) is amended—

18 (1) by striking ‘‘make grants to any State or

19 local government’’ and inserting ‘‘provide financial

20 assistance to any State’’;

21 (2) by inserting after ‘‘major disaster’’ the fol22 lowing: ‘‘if the State agrees to reimburse the United

23 States for all expenses incurred in providing such as24 sistance’’;

25 (3) by striking ‘‘or local government is’’ and in26 serting ‘‘is’’; and
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1 (4) by striking ‘‘such grants’’ and inserting

2 ‘‘assistance’’.

3 SEC. 327. SIMPLIFIED PROCEDURE.

4 Section 422 (42 U.S.C. 5189) is repealed.

5 SEC. 328. APPEALS OF ASSISTANCE DECISIONS.

6 Section 423 (42 U.S.C. 5189a) is repealed.

7 SEC. 329. PROCEDURE FOR DECLARATION.

8 Section 501 (42 U.S.C. 5191) is amended—

9 (1) in subsection (a) by inserting ‘‘reimburs10 able’’ after ‘‘Federal’’ the first place it appears;

11 (2) by inserting before the period at the end of

12 the second sentence of subsection (a) ‘‘and shall

13 enter into an agreement to reimburse the United

14 States for all expenses incurred in providing assist15 ance under this Act with respect to the emergency’’;

16 and

17 (3) in subsection (b) by striking ‘‘or section

18 503’’.

19 SEC. 330. FEDERAL EMERGENCY ASSISTANCE.

20 Section 502 (42 U.S.C. 5192) is amended—

21 (1) in subsection (a) by striking ‘‘In’’ and in22 serting ‘‘Subject to subsection (c), in’’;

23 (2) in subsection (a)(1) by striking ‘‘, with or

24 without reimbursement,’’;
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1 (3) in subsection (b) by striking ‘‘Whenever’’

2 and inserting ‘‘Subject to subsection (c), whenever’’;

3 and

4 (4) by adding at the end the following:

5 ‘‘(c) REIMBURSEMENT AGREEMENT.—Assistance

6 may only be provided under this section if the affected

7 State agrees to reimburse the United States for all ex8 penses incurred in providing such assistance.’’.

9 SEC. 331. AMOUNT OF ASSISTANCE.

10 Section 503 (42 U.S.C. 5193) is repealed.

11 SEC. 332. APPLICABILITY.

12 (a) EFFECTIVE DATE OF AMENDMENTS.—The

13 amendments under this title shall be made on October 1,

14 1995, and shall apply on and after such date, except to

15 the extent provided in subsection (b).

16 (b) INAPPLICABILITY TO DISASTERS DECLARED BE17 FORE EFFECTIVE DATE.—The provisions of law amended

18 by this title, as in effect on the day before the date re19 ferred to in subsection (a), shall continue to apply with

20 respect to any major disaster or emergency that com21 mences or occurs (or is declared or determined to have

22 commenced or occurred) before the date referred in sub23 section (a).

Æ

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