IV
106TH CONGRESS
2D SESSION
H. RES. 607
Providing for the concurrence by the House with an amendment in the
Senate amendment to H.R. 707.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 3, 2000
Mr. SHUSTER submitted the following resolution; which was considered and
agreed to
RESOLUTION
Providing for the concurrence by the House with an
amendment in the Senate amendment to H.R. 707.
Resolved, That upon the adoption of this resolution
the House shall be considered to have taken from the
Speaker’s table the bill H.R. 707, with the amendment
of the Senate thereto, and to have concurred in the
amendment of the Senate to the text with the following
amendment:
In lieu of the matter proposed to be inserted by
the amendment of the Senate, insert the following:
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(1) natural disasters, including earthquakes,
tsunamis, tornadoes, hurricanes, flooding, and
wildfires, pose great danger to human life and to
property throughout the United States;
(2) greater emphasis needs to be placed on—
(A) identifying and assessing the risks to
States and local governments (including Indian
tribes) from natural disasters;
(B) implementing adequate measures to
reduce losses from natural disasters; and
(C) ensuring that the critical services and
facilities of communities will continue to func-
tion after a natural disaster;
(3) expenditures for postdisaster assistance are
increasing without commensurate reductions in the
likelihood of future losses from natural disasters;
(4) in the expenditure of Federal funds under
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.), high
priority should be given to mitigation of hazards at
the local level; and
(5) with a unified effort of economic incentives,
awareness and education, technical assistance, and
demonstrated Federal support, States and local gov-
ernments (including Indian tribes) will be able to—
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(A) form effective community-based part-
nerships for hazard mitigation purposes;
(B) implement effective hazard mitigation
measures that reduce the potential damage
from natural disasters;
(C) ensure continued functionality of crit-
ical services;
(D) leverage additional non-Federal re-
sources in meeting natural disaster resistance
goals; and
(E) make commitments to long-term haz-
ard mitigation efforts to be applied to new and
existing structures.
(b) PURPOSE.—The purpose of this title is to estab-
lish a national disaster hazard mitigation program—
(1) to reduce the loss of life and property,
human suffering, economic disruption, and disaster
assistance costs resulting from natural disasters;
and
(2) to provide a source of predisaster hazard
mitigation funding that will assist States and local
governments (including Indian tribes) in imple-
menting effective hazard mitigation measures that
are designed to ensure the continued functionality of
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critical services and facilities after a natural dis-
aster.
SEC. 102. PREDISASTER HAZARD MITIGATION.
(a) IN GENERAL.—Title II of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5131 et seq.) is amended by adding at the end the fol-
lowing:
‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.
‘‘(a) DEFINITION OF SMALL IMPOVERISHED COMMU-
NITY.—In this section, the term ‘small impoverished com-
munity’ means a community of 3,000 or fewer individuals
that is economically disadvantaged, as determined by the
State in which the community is located and based on cri-
teria established by the President.
‘‘(b) ESTABLISHMENT OF PROGRAM.—The President
may establish a program to provide technical and financial
assistance to States and local governments to assist in the
implementation of predisaster hazard mitigation measures
that are cost-effective and are designed to reduce injuries,
loss of life, and damage and destruction of property, in-
cluding damage to critical services and facilities under the
jurisdiction of the States or local governments.
‘‘(c) APPROVAL BY PRESIDENT.—If the President de-
termines that a State or local government has identified
natural disaster hazards in areas under its jurisdiction
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and has demonstrated the ability to form effective public-
private natural disaster hazard mitigation partnerships,
the President, using amounts in the National Predisaster
Mitigation Fund established under subsection (i) (referred
to in this section as the ‘Fund’), may provide technical
and financial assistance to the State or local government
to be used in accordance with subsection (e).
‘‘(d) STATE RECOMMENDATIONS.—
‘‘(1) IN GENERAL.—
‘‘(A) RECOMMENDATIONS.—The Governor
of each State may recommend to the President
not fewer than 5 local governments to receive
assistance under this section.
‘‘(B) DEADLINE
FOR
SUBMISSION.—The
recommendations under subparagraph (A) shall
be submitted to the President not later than
October 1, 2001, and each October 1st there-
after or such later date in the year as the Presi-
dent may establish.
‘‘(C) CRITERIA.—In making recommenda-
tions under subparagraph (A), a Governor shall
consider the criteria specified in subsection (g).
‘‘(2) USE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), in providing assistance to
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local governments under this section, the Presi-
dent shall select from local governments rec-
ommended by the Governors under this sub-
section.
‘‘(B) EXTRAORDINARY CIRCUMSTANCES.—
In providing assistance to local governments
under this section, the President may select a
local government that has not been rec-
ommended by a Governor under this subsection
if the President determines that extraordinary
circumstances justify the selection and that
making the selection will further the purpose of
this section.
‘‘(3) EFFECT OF FAILURE TO NOMINATE.—If a
Governor of a State fails to submit recommendations
under this subsection in a timely manner, the Presi-
dent may select, subject to the criteria specified in
subsection (g), any local governments of the State to
receive assistance under this section.
‘‘(e) USES OF TECHNICAL AND FINANCIAL ASSIST-
ANCE.—
‘‘(1) IN GENERAL.—Technical and financial as-
sistance provided under this section—
‘‘(A) shall be used by States and local gov-
ernments principally to implement predisaster
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hazard mitigation measures that are cost-effec-
tive and are described in proposals approved by
the President under this section; and
‘‘(B) may be used—
‘‘(i) to support effective public-private
natural disaster hazard mitigation partner-
ships;
‘‘(ii) to improve the assessment of a
community’s vulnerability to natural haz-
ards; or
‘‘(iii) to establish hazard mitigation
priorities, and an appropriate hazard miti-
gation plan, for a community.
‘‘(2) DISSEMINATION.—A State or local govern-
ment may use not more than 10 percent of the fi-
nancial assistance received by the State or local gov-
ernment under this section for a fiscal year to fund
activities to disseminate information regarding cost-
effective mitigation technologies.
‘‘(f) ALLOCATION OF FUNDS.—The amount of finan-
cial assistance made available to a State (including
amounts made available to local governments of the State)
under this section for a fiscal year—
‘‘(1) shall be not less than the lesser of—
‘‘(A) $500,000; or
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contribute up to 90 percent of the total cost of a
mitigation activity carried out in a small impover-
ished community.
‘‘(i) NATIONAL PREDISASTER MITIGATION FUND.—
‘‘(1) ESTABLISHMENT.—The President may es-
tablish in the Treasury of the United States a fund
to be known as the ‘National Predisaster Mitigation
Fund’, to be used in carrying out this section.
‘‘(2) TRANSFERS TO FUND.—There shall be de-
posited in the Fund—
‘‘(A) amounts appropriated to carry out
this section, which shall remain available until
expended; and
‘‘(B) sums available from gifts, bequests,
or donations of services or property received by
the President for the purpose of predisaster
hazard mitigation.
‘‘(3) EXPENDITURES FROM FUND.—Upon re-
quest by the President, the Secretary of the Treas-
ury shall transfer from the Fund to the President
such amounts as the President determines are nec-
essary to provide technical and financial assistance
under this section.
‘‘(4) INVESTMENT OF AMOUNTS.—
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‘‘(A) IN GENERAL.—The Secretary of the
Treasury shall invest such portion of the Fund
as is not, in the judgment of the Secretary of
the Treasury, required to meet current with-
drawals. Investments may be made only in in-
terest-bearing obligations of the United States.
‘‘(B) ACQUISITION OF OBLIGATIONS.—For
the purpose of investments under subparagraph
(A), obligations may be acquired—
‘‘(i) on original issue at the issue
price; or
‘‘(ii) by purchase of outstanding obli-
gations at the market price.
‘‘(C) SALE OF OBLIGATIONS.—Any obliga-
tion acquired by the Fund may be sold by the
Secretary of the Treasury at the market price.
‘‘(D) CREDITS TO FUND.—The interest on,
and the proceeds from the sale or redemption
of, any obligations held in the Fund shall be
credited to and form a part of the Fund.
‘‘(E) TRANSFERS OF AMOUNTS.—
‘‘(i) IN GENERAL.—The amounts re-
quired to be transferred to the Fund under
this subsection shall be transferred at least
monthly from the general fund of the
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Treasury to the Fund on the basis of esti-
mates made by the Secretary of the Treas-
ury.
‘‘(ii) ADJUSTMENTS.—Proper adjust-
ment shall be made in amounts subse-
quently transferred to the extent prior esti-
mates were in excess of or less than the
amounts required to be transferred.
‘‘(j) LIMITATION ON TOTAL AMOUNT OF FINANCIAL
ASSISTANCE.—The President shall not provide financial
assistance under this section in an amount greater than
the amount available in the Fund.
‘‘(k) MULTIHAZARD ADVISORY MAPS.—
‘‘(1) DEFINITION OF MULTIHAZARD ADVISORY
MAP.—In this subsection, the term ‘multihazard ad-
visory map’ means a map on which hazard data con-
cerning each type of natural disaster is identified si-
multaneously for the purpose of showing areas of
hazard overlap.
‘‘(2) DEVELOPMENT OF MAPS.—In consultation
with States, local governments, and appropriate
Federal agencies, the President shall develop multi-
hazard advisory maps for areas, in not fewer than
5 States, that are subject to commonly recurring
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natural hazards (including flooding, hurricanes and
severe winds, and seismic events).
‘‘(3) USE
OF
TECHNOLOGY.—In developing
multihazard advisory maps under this subsection,
the President shall use, to the maximum extent
practicable, the most cost-effective and efficient
technology available.
‘‘(4) USE OF MAPS.—
‘‘(A) 
ADVISORY
NATURE.—The 
multi-
hazard advisory maps shall be considered to be
advisory and shall not require the development
of any new policy by, or impose any new policy
on, any government or private entity.
‘‘(B) AVAILABILITY OF MAPS.—The multi-
hazard advisory maps shall be made available to
the appropriate State and local governments for
the purposes of—
‘‘(i) informing the general public
about the risks of natural hazards in the
areas described in paragraph (2);
‘‘(ii) supporting the activities de-
scribed in subsection (e); and
‘‘(iii) other public uses.
‘‘(l) REPORT ON FEDERAL AND STATE ADMINISTRA-
TION.—Not later than 18 months after the date of enact-
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ment of this section, the President, in consultation with
State and local governments, shall submit to Congress a
report evaluating efforts to implement this section and
recommending a process for transferring greater authority
and responsibility for administering the assistance pro-
gram established under this section to capable States.
‘‘(m) TERMINATION OF AUTHORITY.—The authority
provided by this section terminates December 31, 2003.’’.
(b) CONFORMING AMENDMENT.—Title II of the Rob-
ert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5131 et seq.) is amended by striking the
title heading and inserting the following:
‘‘TITLE II—DISASTER PREPARED-
NESS AND MITIGATION AS-
SISTANCE’’.
SEC. 103. INTERAGENCY TASK FORCE.
Title II of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5131 et seq.) (as
amended by section 102(a)) is amended by adding at the
end the following:
‘‘SEC. 204. INTERAGENCY TASK FORCE.
‘‘(a) IN GENERAL.—The President shall establish a
Federal interagency task force for the purpose of coordi-
nating the implementation of predisaster hazard mitiga-
tion programs administered by the Federal Government.
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‘‘(b) CHAIRPERSON.—The Director of the Federal
Emergency Management Agency shall serve as the chair-
person of the task force.
‘‘(c) MEMBERSHIP.—The membership of the task
force shall include representatives of—
‘‘(1) relevant Federal agencies;
‘‘(2) State and local government organizations
(including Indian tribes); and
‘‘(3) the American Red Cross.’’.
SEC. 104. MITIGATION PLANNING; MINIMUM STANDARDS
FOR PUBLIC AND PRIVATE STRUCTURES.
(a) IN GENERAL.—Title III of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5141 et seq.) is amended by adding at the end the fol-
lowing:
‘‘SEC. 322. MITIGATION PLANNING.
‘‘(a) REQUIREMENT OF MITIGATION PLAN.—As a
condition of receipt of an increased Federal share for haz-
ard mitigation measures under subsection (e), a State,
local, or tribal government shall develop and submit for
approval to the President a mitigation plan that outlines
processes for identifying the natural hazards, risks, and
vulnerabilities of the area under the jurisdiction of the
government.
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‘‘(b) LOCAL AND TRIBAL PLANS.—Each mitigation
plan developed by a local or tribal government shall—
‘‘(1) describe actions to mitigate hazards, risks,
and vulnerabilities identified under the plan; and
‘‘(2) establish a strategy to implement those ac-
tions.
‘‘(c) STATE PLANS.—The State process of develop-
ment of a mitigation plan under this section shall—
‘‘(1) identify the natural hazards, risks, and
vulnerabilities of areas in the State;
‘‘(2) support development of local mitigation
plans;
‘‘(3) provide for technical assistance to local
and tribal governments for mitigation planning; and
‘‘(4) identify and prioritize mitigation actions
that the State will support, as resources become
available.
‘‘(d) FUNDING.—
‘‘(1) 
IN
GENERAL.—Federal 
contributions
under section 404 may be used to fund the develop-
ment and updating of mitigation plans under this
section.
‘‘(2) MAXIMUM
FEDERAL
CONTRIBUTION.—
With respect to any mitigation plan, a State, local,
or tribal government may use an amount of Federal
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contributions under section 404 not to exceed 7 per-
cent of the amount of such contributions available to
the government as of a date determined by the gov-
ernment.
‘‘(e) INCREASED FEDERAL SHARE
FOR HAZARD
MITIGATION MEASURES.—
‘‘(1) IN GENERAL.—If, at the time of the dec-
laration of a major disaster, a State has in effect an
approved mitigation plan under this section, the
President may increase to 20 percent, with respect
to the major disaster, the maximum percentage
specified in the last sentence of section 404(a).
‘‘(2) FACTORS FOR CONSIDERATION.—In deter-
mining whether to increase the maximum percentage
under paragraph (1), the President shall consider
whether the State has established—
‘‘(A) eligibility criteria for property acqui-
sition and other types of mitigation measures;
‘‘(B) requirements for cost effectiveness
that are related to the eligibility criteria;
‘‘(C) a system of priorities that is related
to the eligibility criteria; and
‘‘(D) a process by which an assessment of
the effectiveness of a mitigation action may be
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carried out after the mitigation action is com-
plete.
‘‘SEC. 323. MINIMUM STANDARDS FOR PUBLIC AND PRI-
VATE STRUCTURES.
‘‘(a) IN GENERAL.—As a condition of receipt of a dis-
aster loan or grant under this Act—
‘‘(1) the recipient shall carry out any repair or
construction to be financed with the loan or grant in
accordance with applicable standards of safety, de-
cency, and sanitation and in conformity with appli-
cable codes, specifications, and standards; and
‘‘(2) the President may require safe land use
and construction practices, after adequate consulta-
tion with appropriate State and local government of-
ficials.
‘‘(b) EVIDENCE OF COMPLIANCE.—A recipient of a
disaster loan or grant under this Act shall provide such
evidence of compliance with this section as the President
may require by regulation.’’.
(b) LOSSES FROM STRAIGHT LINE WINDS.—The
President shall increase the maximum percentage specified
in the last sentence of section 404(a) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170c(a)) from 15 percent to 20 percent with
respect to any major disaster that is in the State of Min-
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nesota and for which assistance is being provided as of
the date of enactment of this Act, except that additional
assistance provided under this subsection shall not exceed
$6,000,000. The mitigation measures assisted under this
subsection shall be related to losses in the State of Min-
nesota from straight line winds.
(c) CONFORMING AMENDMENTS.—
(1) Section 404(a) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170c(a)) is amended—
(A) in the second sentence, by striking
‘‘section 409’’ and inserting ‘‘section 322’’; and
(B) in the third sentence, by striking ‘‘The
total’’ and inserting ‘‘Subject to section 322,
the total’’.
(2) Section 409 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42
U.S.C. 5176) is repealed.
TITLE II—STREAMLINING AND
COST REDUCTION
SEC. 201. TECHNICAL AMENDMENTS.
Section 311 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5154) is
amended in subsections (a)(1), (b), and (c) by striking
‘‘section 803 of the Public Works and Economic Develop-
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ment Act of 1965’’ each place it appears and inserting
‘‘section 209(c)(2) of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3149(c)(2))’’.
SEC. 202. MANAGEMENT COSTS.
(a) IN GENERAL.—Title III of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5141 et seq.) (as amended by section 104(a)) is amended
by adding at the end the following:
‘‘SEC. 324. MANAGEMENT COSTS.
‘‘(a) DEFINITION OF MANAGEMENT COST.—In this
section, the term ‘management cost’ includes any indirect
cost, any administrative expense, and any other expense
not directly chargeable to a specific project under a major
disaster, emergency, or disaster preparedness or mitiga-
tion activity or measure.
‘‘(b) ESTABLISHMENT
OF
MANAGEMENT
COST
RATES.—Notwithstanding any other provision of law (in-
cluding any administrative rule or guidance), the Presi-
dent shall by regulation establish management cost rates,
for grantees and subgrantees, that shall be used to deter-
mine contributions under this Act for management costs.
‘‘(c) REVIEW.—The President shall review the man-
agement cost rates established under subsection (b) not
later than 3 years after the date of establishment of the
rates and periodically thereafter.’’.
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(b) APPLICABILITY.—
(1) IN GENERAL.—Subject to paragraph (2),
subsections (a) and (b) of section 324 of the Robert
T. Stafford Disaster Relief and Emergency Assist-
ance Act (as added by subsection (a)) shall apply to
major disasters declared under that Act on or after
the date of enactment of this Act.
(2) INTERIM AUTHORITY.—Until the date on
which the President establishes the management
cost rates under section 324 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act
(as added by subsection (a)), section 406(f) of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5172(f)) (as in effect on
the day before the date of enactment of this Act)
shall be used to establish management cost rates.
SEC. 203. PUBLIC NOTICE, COMMENT, AND CONSULTATION
REQUIREMENTS.
Title III of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5141 et seq.)
(as amended by section 202(a)) is amended by adding at
the end the following:
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‘‘SEC. 325. PUBLIC NOTICE, COMMENT, AND CONSULTATION
REQUIREMENTS.
‘‘(a) PUBLIC NOTICE AND COMMENT CONCERNING
NEW OR MODIFIED POLICIES.—
‘‘(1) IN GENERAL.—The President shall provide
for public notice and opportunity for comment be-
fore adopting any new or modified policy that—
‘‘(A) governs implementation of the public
assistance program administered by the Federal
Emergency Management Agency under this
Act; and
‘‘(B) could result in a significant reduction
of assistance under the program.
‘‘(2) APPLICATION.—Any policy adopted under
paragraph (1) shall apply only to a major disaster
or emergency declared on or after the date on which
the policy is adopted.
‘‘(b) CONSULTATION CONCERNING INTERIM POLI-
CIES.—
‘‘(1) IN
GENERAL.—Before adopting any in-
terim policy under the public assistance program to
address specific conditions that relate to a major
disaster or emergency that has been declared under
this Act, the President, to the maximum extent
practicable, shall solicit the views and recommenda-
tions of grantees and subgrantees with respect to the
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major disaster or emergency concerning the poten-
tial interim policy, if the interim policy is likely—
‘‘(A) to result in a significant reduction of
assistance to applicants for the assistance with
respect to the major disaster or emergency; or
‘‘(B) to change the terms of a written
agreement to which the Federal Government is
a party concerning the declaration of the major
disaster or emergency.
‘‘(2) NO LEGAL RIGHT OF ACTION.—Nothing in
this subsection confers a legal right of action on any
party.
‘‘(c) PUBLIC ACCESS.—The President shall promote
public access to policies governing the implementation of
the public assistance program.’’.
SEC. 204. STATE ADMINISTRATION OF HAZARD MITIGATION
GRANT PROGRAM.
Section 404 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170c) is
amended by adding at the end the following:
‘‘(c) PROGRAM ADMINISTRATION BY STATES.—
‘‘(1) IN GENERAL.—A State desiring to admin-
ister the hazard mitigation grant program estab-
lished by this section with respect to hazard mitiga-
tion assistance in the State may submit to the Presi-
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dent an application for the delegation of the author-
ity to administer the program.
‘‘(2) CRITERIA.—The President, in consultation
and coordination with States and local governments,
shall establish criteria for the approval of applica-
tions submitted under paragraph (1). The criteria
shall include, at a minimum—
‘‘(A) the demonstrated ability of the State
to manage the grant program under this sec-
tion;
‘‘(B) there being in effect an approved
mitigation plan under section 322; and
‘‘(C) a demonstrated commitment to miti-
gation activities.
‘‘(3) APPROVAL.—The President shall approve
an application submitted under paragraph (1) that
meets the criteria established under paragraph (2).
‘‘(4) WITHDRAWAL
OF
APPROVAL.—If, after
approving an application of a State submitted under
paragraph (1), the President determines that the
State is not administering the hazard mitigation
grant program established by this section in a man-
ner satisfactory to the President, the President shall
withdraw the approval.
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‘‘(5) AUDITS.—The President shall provide for
periodic audits of the hazard mitigation grant pro-
grams administered by States under this sub-
section.’’.
SEC. 205. ASSISTANCE TO REPAIR, RESTORE, RECON-
STRUCT, OR REPLACE DAMAGED FACILITIES.
(a) CONTRIBUTIONS.—Section 406 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5172) is amended by striking subsection (a)
and inserting the following:
‘‘(a) CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—The President may make
contributions—
‘‘(A) to a State or local government for the
repair, restoration, reconstruction, or replace-
ment of a public facility damaged or destroyed
by a major disaster and for associated expenses
incurred by the government; and
‘‘(B) subject to paragraph (3), to a person
that owns or operates a private nonprofit facil-
ity damaged or destroyed by a major disaster
for the repair, restoration, reconstruction, or re-
placement of the facility and for associated ex-
penses incurred by the person.
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‘‘(2) ASSOCIATED
EXPENSES.—For the pur-
poses of this section, associated expenses shall
include—
‘‘(A) the costs of mobilizing and employing
the National Guard for performance of eligible
work;
‘‘(B) the costs of using prison labor to per-
form eligible work, including wages actually
paid, transportation to a worksite, and extraor-
dinary costs of guards, food, and lodging; and
‘‘(C) base and overtime wages for the em-
ployees and extra hires of a State, local govern-
ment, or person described in paragraph (1) that
perform eligible work, plus fringe benefits on
such wages to the extent that such benefits
were being paid before the major disaster.
‘‘(3) CONDITIONS FOR ASSISTANCE TO PRIVATE
NONPROFIT FACILITIES.—
‘‘(A) IN
GENERAL.—The President may
make contributions to a private nonprofit facil-
ity under paragraph (1)(B) only if—
‘‘(i) the facility provides critical serv-
ices (as defined by the President) in the
event of a major disaster; or
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‘‘(ii) the owner or operator of the
facility—
‘‘(I) has applied for a disaster
loan under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)); and
‘‘(II)(aa) has been determined to
be ineligible for such a loan; or
‘‘(bb) has obtained such a loan in
the maximum amount for which the
Small Business Administration deter-
mines the facility is eligible.
‘‘(B) DEFINITION
OF
CRITICAL
SERV-
ICES.—In this paragraph, the term ‘critical
services’ includes power, water (including water
provided by an irrigation organization or facil-
ity), sewer, wastewater treatment, communica-
tions, and emergency medical care.
‘‘(4) NOTIFICATION
TO
CONGRESS.—Before
making any contribution under this section in an
amount greater than $20,000,000, the President
shall notify—
‘‘(A) the Committee on Environment and
Public Works of the Senate;
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‘‘(B) the Committee on Transportation
and Infrastructure of the House of Representa-
tives;
‘‘(C) the Committee on Appropriations of
the Senate; and
‘‘(D) the Committee on Appropriations of
the House of Representatives.’’.
(b) FEDERAL SHARE.—Section 406 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5172) is amended by striking subsection (b)
and inserting the following:
‘‘(b) FEDERAL SHARE.—
‘‘(1) MINIMUM
FEDERAL
SHARE.—Except as
provided in paragraph (2), the Federal share of as-
sistance under this section shall be not less than 75
percent of the eligible cost of repair, restoration, re-
construction, or replacement carried out under this
section.
‘‘(2) REDUCED FEDERAL SHARE.—The Presi-
dent shall promulgate regulations to reduce the Fed-
eral share of assistance under this section to not less
than 25 percent in the case of the repair, restora-
tion, reconstruction, or replacement of any eligible
public facility or private nonprofit facility following
an event associated with a major disaster—
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‘‘(A) that has been damaged, on more than
1 occasion within the preceding 10-year period,
by the same type of event; and
‘‘(B) the owner of which has failed to im-
plement appropriate mitigation measures to ad-
dress the hazard that caused the damage to the
facility.’’.
(c) LARGE IN-LIEU CONTRIBUTIONS.—Section 406
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5172) is amended by striking
subsection (c) and inserting the following:
‘‘(c) LARGE IN-LIEU CONTRIBUTIONS.—
‘‘(1) FOR PUBLIC FACILITIES.—
‘‘(A) IN GENERAL.—In any case in which
a State or local government determines that the
public welfare would not best be served by re-
pairing, restoring, reconstructing, or replacing
any public facility owned or controlled by the
State or local government, the State or local
government may elect to receive, in lieu of a
contribution under subsection (a)(1)(A), a con-
tribution in an amount equal to 75 percent of
the Federal share of the Federal estimate of the
cost of repairing, restoring, reconstructing, or
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replacing the facility and of management ex-
penses.
‘‘(B) AREAS
WITH
UNSTABLE
SOIL.—In
any case in which a State or local government
determines that the public welfare would not
best be served by repairing, restoring, recon-
structing, or replacing any public facility owned
or controlled by the State or local government
because soil instability in the disaster area
makes repair, restoration, reconstruction, or re-
placement infeasible, the State or local govern-
ment may elect to receive, in lieu of a contribu-
tion under subsection (a)(1)(A), a contribution
in an amount equal to 90 percent of the Fed-
eral share of the Federal estimate of the cost
of repairing, restoring, reconstructing, or re-
placing the facility and of management ex-
penses.
‘‘(C) USE OF FUNDS.—Funds contributed
to a State or local government under this para-
graph may be used—
‘‘(i) to repair, restore, or expand other
selected public facilities;
‘‘(ii) to construct new facilities; or
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‘‘(iii) to fund hazard mitigation meas-
ures that the State or local government de-
termines to be necessary to meet a need
for governmental services and functions in
the area affected by the major disaster.
‘‘(D) LIMITATIONS.—Funds made avail-
able to a State or local government under this
paragraph may not be used for—
‘‘(i) any public facility located in a
regulatory floodway (as defined in section
59.1 of title 44, Code of Federal Regula-
tions (or a successor regulation)); or
‘‘(ii) any uninsured public facility lo-
cated in a special flood hazard area identi-
fied by the Director of the Federal Emer-
gency Management Agency under the Na-
tional Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
‘‘(2) FOR PRIVATE NONPROFIT FACILITIES.—
‘‘(A) IN GENERAL.—In any case in which
a person that owns or operates a private non-
profit facility determines that the public welfare
would not best be served by repairing, restor-
ing, reconstructing, or replacing the facility, the
person may elect to receive, in lieu of a con-
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tribution under subsection (a)(1)(B), a con-
tribution in an amount equal to 75 percent of
the Federal share of the Federal estimate of the
cost of repairing, restoring, reconstructing, or
replacing the facility and of management ex-
penses.
‘‘(B) USE OF FUNDS.—Funds contributed
to a person under this paragraph may be
used—
‘‘(i) to repair, restore, or expand other
selected private nonprofit facilities owned
or operated by the person;
‘‘(ii) to construct new private non-
profit facilities to be owned or operated by
the person; or
‘‘(iii) to fund hazard mitigation meas-
ures that the person determines to be nec-
essary to meet a need for the person’s
services and functions in the area affected
by the major disaster.
‘‘(C) LIMITATIONS.—Funds made available
to a person under this paragraph may not be
used for—
‘‘(i) any private nonprofit facility lo-
cated in a regulatory floodway (as defined
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in section 59.1 of title 44, Code of Federal
Regulations (or a successor regulation)); or
‘‘(ii) any uninsured private nonprofit
facility located in a special flood hazard
area identified by the Director of the Fed-
eral 
Emergency 
Management 
Agency
under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.).’’.
(d) ELIGIBLE COST.—
(1) IN GENERAL.—Section 406 of the Robert T.
Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5172) is amended by striking sub-
section (e) and inserting the following:
‘‘(e) ELIGIBLE COST.—
‘‘(1) DETERMINATION.—
‘‘(A) IN GENERAL.—For the purposes of
this section, the President shall estimate the eli-
gible cost of repairing, restoring, recon-
structing, or replacing a public facility or pri-
vate nonprofit facility—
‘‘(i) on the basis of the design of the
facility as the facility existed immediately
before the major disaster; and
‘‘(ii) in conformity with codes, speci-
fications, and standards (including flood-
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plain management and hazard mitigation
criteria required by the President or under
the Coastal Barrier Resources Act (16
U.S.C. 3501 et seq.)) applicable at the
time at which the disaster occurred.
‘‘(B) COST ESTIMATION PROCEDURES.—
‘‘(i) IN GENERAL.—Subject to para-
graph (2), the President shall use the cost
estimation procedures established under
paragraph (3) to determine the eligible
cost under this subsection.
‘‘(ii) 
APPLICABILITY.—The 
proce-
dures specified in this paragraph and para-
graph (2) shall apply only to projects the
eligible cost of which is equal to or greater
than the amount specified in section 422.
‘‘(2) MODIFICATION OF ELIGIBLE COST.—
‘‘(A) ACTUAL COST GREATER THAN CEIL-
ING
PERCENTAGE
OF
ESTIMATED
COST.—In
any case in which the actual cost of repairing,
restoring, reconstructing, or replacing a facility
under this section is greater than the ceiling
percentage established under paragraph (3) of
the cost estimated under paragraph (1), the
President may determine that the eligible cost
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includes a portion of the actual cost of the re-
pair, restoration, reconstruction, or replacement
that exceeds the cost estimated under para-
graph (1).
‘‘(B) ACTUAL
COST
LESS
THAN
ESTI-
MATED COST.—
‘‘(i) GREATER
THAN
OR
EQUAL
TO
FLOOR
PERCENTAGE
OF
ESTIMATED
COST.—In any case in which the actual
cost of repairing, restoring, reconstructing,
or replacing a facility under this section is
less than 100 percent of the cost estimated
under paragraph (1), but is greater than
or equal to the floor percentage established
under paragraph (3) of the cost estimated
under paragraph (1), the State or local
government or person receiving funds
under this section shall use the excess
funds to carry out cost-effective activities
that reduce the risk of future damage,
hardship, or suffering from a major dis-
aster.
‘‘(ii) LESS THAN FLOOR PERCENTAGE
OF
ESTIMATED
COST.—In any case in
which the actual cost of repairing, restor-
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ing, reconstructing, or replacing a facility
under this section is less than the floor
percentage established under paragraph
(3) of the cost estimated under paragraph
(1), the State or local government or per-
son receiving assistance under this section
shall reimburse the President in the
amount of the difference.
‘‘(C) NO EFFECT ON APPEALS PROCESS.—
Nothing in this paragraph affects any right of
appeal under section 423.
‘‘(3) EXPERT PANEL.—
‘‘(A) ESTABLISHMENT.—Not later than 18
months after the date of enactment of this
paragraph, the President, acting through the
Director of the Federal Emergency Manage-
ment Agency, shall establish an expert panel,
which shall include representatives from the
construction industry and State and local gov-
ernment.
‘‘(B) DUTIES.—The expert panel shall de-
velop recommendations concerning—
‘‘(i) procedures for estimating the cost
of repairing, restoring, reconstructing, or
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replacing a facility consistent with industry
practices; and
‘‘(ii) the ceiling and floor percentages
referred to in paragraph (2).
‘‘(C) REGULATIONS.—Taking into account
the recommendations of the expert panel under
subparagraph (B), the President shall promul-
gate regulations that establish—
‘‘(i) cost estimation procedures de-
scribed in subparagraph (B)(i); and
‘‘(ii) the ceiling and floor percentages
referred to in paragraph (2).
‘‘(D) REVIEW BY PRESIDENT.—Not later
than 2 years after the date of promulgation of
regulations under subparagraph (C) and peri-
odically thereafter, the President shall review
the cost estimation procedures and the ceiling
and floor percentages established under this
paragraph.
‘‘(E) REPORT
TO
CONGRESS.—Not later
than 1 year after the date of promulgation of
regulations under subparagraph (C), 3 years
after that date, and at the end of each 2-year
period thereafter, the expert panel shall submit
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to Congress a report on the appropriateness of
the cost estimation procedures.
‘‘(4) SPECIAL RULE.—In any case in which the
facility being repaired, restored, reconstructed, or re-
placed under this section was under construction on
the date of the major disaster, the cost of repairing,
restoring, reconstructing, or replacing the facility
shall include, for the purposes of this section, only
those costs that, under the contract for the construc-
tion, are the owner’s responsibility and not the con-
tractor’s responsibility.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) takes effect on the date of enact-
ment of this Act and applies to funds appropriated
after the date of enactment of this Act, except that
paragraph (1) of section 406(e) of the Robert T.
Stafford Disaster Relief and Emergency Assistance
Act (as amended by paragraph (1)) takes effect on
the date on which the cost estimation procedures es-
tablished under paragraph (3) of that section take
effect.
(e) CONFORMING AMENDMENT.—Section 406 of the
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5172) is amended by striking sub-
section (f).