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‘‘(2) improving the emergency response to natu-
ral disasters which shall include capabilities for fire-
fighting, search and rescue, and the provision of
shelters, communications, and medical relief;
‘‘(3) developing standards and guidelines for
the regular training of first responders for disaster
emergency mitigation;
‘‘(4) enforcing local community land use and
management ordinances;
‘‘(5) addressing further development in high-
risk, disaster-prone areas and the impact of such de-
velopment on life safety and the environment;
‘‘(6) ensuring all builders, plumbers, elec-
tricians, and building inspectors are licensed or cer-
tified; and
‘‘(7) identifying essential critical facilities and
lifelines and public facilities to be retrofitted within
a fixed time period.
‘‘SEC. 813. TIME PERIODS FOR STATE DEVELOPMENT AND
IMPLEMENTATION OF BUILDING CODES AND
MITIGATION PLANS.
‘‘(a) TIME PERIODS.—Each natural disaster-prone
State shall meet the following mitigation compliance mile-
stones within the prescribed time periods which shall be
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measured from the date of enactment of the Natural Dis-
aster Protection Partnership Act of 1995:
‘‘(1) SUBMISSION OF STATE MITIGATION PLANS
TO FEMA.—Within 2 years, submit to the Director
its mitigation plan developed pursuant to section
812.
‘‘(2) ADOPTION OF BUILDING CODES.—Within
3 years, certify to the Director that it has adopted
the building and safety codes identified in section
811 or certified that its local communities have
adopted them.
‘‘(3) 
IMPLEMENTATION
OF
MITIGATION
PLANS.—Within 4 years, certify to the Director that
the processes of its mitigation plan as described in
section 812(b) are being implemented.
‘‘(4) BUILDING CODE ENFORCEMENT.—Within
5 years, certify to the Director that the building and
safety codes identified in section 811 are being ade-
quately enforced.
‘‘(b) NOTIFICATION AND OPPORTUNITY TO CURE.—
The Director shall promptly notify in writing those States
which fail to meet a compliance requirement described in
subsection (a). If after receiving such notification, the
State shall be subject to the provisions specified in section
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814 until such date as the Director determines that the
State has taken the necessary corrective action.
‘‘(c) REGULATIONS.—Within 12 months of the date
of enactment of the Natural Disaster Protection Partner-
ship Act of 1995, the Director shall issue final Federal
regulations, pursuant to the provisions of subchapter II
of chapter 5 of title 5, United States Code, necessary to
carry out this section. These regulations shall include
guidance to States as to what constitutes adequate compli-
ance with the hazard mitigation measures of this subtitle.
‘‘SEC. 814. FEDERAL SHARE OF FINANCIAL ASSISTANCE.
‘‘(a) REDUCE
FEDERAL
SHARE
FOR
DISASTER
AID.—The Federal share of public assistance available to
States under sections 406(b)(1) and 407(d)(1) shall be re-
duced to 50 percent for any State which has not met, with-
in the prescribed time periods, the requirements of section
813.
‘‘(b) NO MITIGATION FUNDS.—Funds from the Miti-
gation Account under section 815 shall be denied to any
State which has not met, within the prescribed time peri-
ods, the requirements of section 813.
‘‘SEC. 815. MITIGATION ACCOUNT.
‘‘(a) FUNDS TO STATES.—
‘‘(1) AUTHORITY.—After the Director credits
premiums from the Natural Disaster Insurance Cor-
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poration under section 901, all of the funds appro-
priated to the Mitigation Account established by sec-
tion 1004 shall be allocated by the Director to
States at the beginning of every fiscal year following
the date of enactment of the Natural Disaster Pro-
tection Partnership Act of 1995, except that those
States subject to the provisions of section 814(b)
shall be denied such funds.
‘‘(2) FORMULA.—The Mitigation Account funds
shall be allocated to a State based on a pro rata for-
mula of the primary insurance coverages and rein-
surance coverage premiums described in section 903
collected from that State. Within 12 months of the
date of enactment of the Natural Disaster Protec-
tion Partnership Act of 1995, the Director shall
issue final Federal regulations, pursuant to the pro-
visions of subchapter II of chapter 5 of title 5,
United States Code, describing the pro rata formula.
‘‘(3) MINIMUM AMOUNT.—Notwithstanding the
formula established under paragraph (2), each State
shall receive annually at least 0.25 percent of the
amounts in the Mitigation Account or $250,000,
whichever amount is greater.
‘‘(b) USE.—
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‘‘(1) IN
GENERAL.—The funds received by
States from the Mitigation Account shall be used to
support natural disaster hazard mitigation activities,
including providing assistance for—
‘‘(A) first responders;
‘‘(B) State revolving loan funds, if estab-
lished, to undertake financing, including the
leveraging of funds for various hazard mitiga-
tion activities;
‘‘(C) low-income individuals and families to
help pay for the undertaking of hazard mitiga-
tion measures;
‘‘(D) the dissemination of cost-effective
technologies to prevent or substantially reduce
damage caused by natural disasters and for the
establishment of geographically-dispersed and
duly-incorporated natural disaster damage pre-
vention and mitigation Centers for Protection
Against Natural Disasters to carry out such
dissemination;
‘‘(E) addressing further development in
high-risk, disaster-prone areas and the impact
of such development on the environment; and
‘‘(F) the construction of buildings to serve
as models for the advancement of public edu-
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cation about cost-effective hazard mitigation
technology in the design and construction of
buildings, such as the employment of fire sup-
pression and water catchment systems.
‘‘(2) PRIORITY.—The States shall give priority
in using the funds received from the Mitigation Ac-
count to those hazard mitigation activities necessary
to bring the State into compliance with the building
and safety code requirements of section 811 and the
mitigation plan requirements of section 812.
‘‘(c) LOCAL COMMUNITIES.—States shall transfer not
less than 25 percent of the funds received each year under
this section to local communities to support activities nec-
essary to ensure State compliance with the hazard mitiga-
tion requirements of this subtitle.
‘‘(d) AUDITS.—The Director shall from time-to-time
conduct audits to ensure that States and local commu-
nities are using the funds received each year under this
section to support the hazard mitigation activities de-
scribed in this section.
‘‘SEC. 816. NO UNFUNDED MANDATES.
‘‘(a) IN GENERAL.—If a State documents to the Di-
rector that such State has not received adequate funds
from the Mitigation Account established by section 1004
to cover the costs of complying with a particular mitiga-
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tion requirement described in this subtitle, that particular
mitigation requirement shall not apply to such State.
‘‘(b) EXCEPTIONS.—
‘‘(1) ADEQUATE FUNDS.—Subsection (a) shall
not apply to mitigation requirements described in
this subtitle for which the State has failed to docu-
ment that it has received an inadequate amount of
funds from the Mitigation Account to fully cover the
cost of complying with such mitigation requirements.
‘‘(2) NON-COMPLIANCE
STATES.—Subsection
(a) shall not apply to States that are subject to the
provisions of section 814(b).
‘‘(3) CONDITIONAL
FEDERAL
ASSISTANCE.—
Subsection (a) shall not apply to any duty imposed
by this subtitle that is a condition of any Federal as-
sistance provided by this Act.
‘‘Subtitle C—Insurance Mitigation
Incentives
‘‘SEC. 821. INSURANCE PRICING INCENTIVES.
‘‘Each private insurer that participates as a member
of the Natural Disaster Insurance Corporation should be
encouraged to take natural disaster hazard mitigation
measures into account in setting rates and deductibles for
its property insurance.