I
105TH CONGRESS
1ST SESSION
H. R. 2446
To amend The Robert T. Stafford Disaster Relief and Emergency Assistance
Act to reduce the costs of disaster relief and emergency assistance,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 10, 1997
Mr. SHUSTER (for himself, Mr. OBERSTAR, Mr. BOEHLERT, and Mr. BORSKI)
(all by request) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To amend The Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act to reduce the costs of disaster
relief and emergency assistance, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Disaster Streamlining
and Costs Reduction Act of 1997’’.
SEC. 2. DEFINITIONS.
(a) Section 102 of The Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122)
is amended by striking paragraphs (8) and (9) and insert-
ing new paragraphs (8) and (9) as follows:
‘‘(8)(A) ‘Public facility’ means the following fa-
cilities owned by a State or local government:
‘‘(i) Any sewage treatment and collection,
water supply and distribution, or airport facil-
ity.
‘‘(ii) Any non-Federal-aid street, road, or
highway.
‘‘(iii) Any other public building, structure,
or system that is essential to life, health, edu-
cation, or safety.
‘‘(iv) Parks other than those defined in
subparagraph (B)(v) of this paragraph.
‘‘(B) The term ‘public facility’ does not include
the following facilities owned by a State or local gov-
ernment:
‘‘(i) Flood control, navigation, irriga-
tion, reclamation, or watershed develop-
ment, structure, or systems.
‘‘(ii) Electric utilities.
‘‘(iii) Building contents.
‘‘(iv) Cultural objects.
‘‘(v) Trees and other natural features
that are located within parks and rec-
reational areas, as well as on the grounds
of other publicly owned property.
‘‘(vi) Parks, recreational areas, mari-
nas, golf courses, stadiums, arenas, or
other similar facilities, which generate any
portion 
of 
their 
operational 
revenue
through 
user 
fees, 
rents, 
admission
charges, or similar fees.
‘‘(vii) Beaches.
‘‘(9) ‘Private nonprofit facility’ means private
nonprofit 
educational, 
emergency, 
medical,
rehabilitational, utilities other than electric utilities,
and custodial care facilities. The term ‘private non-
profit facility’ does not include the following facili-
ties owned by a private nonprofit entity:
‘‘(A) Building contents.
‘‘(B) Cultural objects.
‘‘(C) Trees and other natural features that
are located within parks and recreational areas,
as well as on the grounds of other private non-
profit property.
‘‘(D) Beaches.’’.
(b) Such section 102 is further amended by adding
the following definitions at the end of the section:
‘‘(10) ‘Director’ means the Director of the Fed-
eral Emergency Management Agency.
‘‘(11) ‘Hazard mitigation’ or ‘mitigation’ means
programs and actions to reduce the risk or impact
of hazards in order to reduce loss of life and injury,
damage, or destruction of property from a disaster.
‘‘(12) ‘Incentives’ means measures to induce ac-
tion by State and local governments, individuals, and
other private interests to minimize or reduce the loss
of life and property from disasters, including in-
creased or reduced disaster assistance cost sharing,
and such other measures as the President or Direc-
tor may establish by regulation.’’.
SEC. 3. PREDISASTER HAZARD MITIGATION.
Title II of The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5131 et seq.) is
amended by inserting at the end a new section 203 as
follows:
‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.
‘‘(a) The Director is authorized to establish a
predisaster mitigation program to assist State and local
governments to reduce injuries and loss of life, and to re-
duce damage or destruction of property from disasters be-
fore disasters occur; and is authorized to use incentives,
disincentives, and other mitigation measures to reduce the
cost of disasters to Federal, State, and local governments,
particularly damages to public facilities, and to the private
sector.
‘‘(b) The Director is authorized to make predisaster
mitigation grants of not less than 75 percent of the cost
of hazard mitigation measures to States and local govern-
ment and to eligible private nonprofit organizations to
carry out the purposes of this section. The predisaster
mitigation program established by this section shall not
duplicate or replace assistance available to States and
local governments and eligible nonprofit organizations
under authorities and programs administered by other
Federal departments or agencies.
‘‘(c) The Director shall establish by rules and regula-
tions the standards, incentives, and criteria applicable to
grants made under the authority of this section, includ-
ing—
‘‘(1) incentives for measures that reduce the
risk of injuries and loss of life and reduce damages
and destruction of property from disasters and that
exceed the minimum standards and criteria estab-
lished by the Director under this section;
‘‘(2) incentives for establishing disaster assist-
ance programs, trust funds, or other measures that
enhance the ability of individuals, property owners,
and States and local governments to finance, reim-
burse, or compensate for losses suffered from disas-
ters;
‘‘(3) procedures for the identification and eval-
uation of natural hazards that threaten the State or
community;
‘‘(4) measures to reduce injuries and loss of life
and to reduce damages and destruction of property
from disasters:
‘‘(5) adoption and enforcement of laws, con-
struction codes and other codes, communitywide
land use and other ordinances and bylaws, and regu-
lations to minimize or mitigate the effects of disas-
ters; and
‘‘(6) such other mitigation measures as the
President or the Director may adopt by regulation.
‘‘(d) To carry out the predisaster mitigation program
authorized in subsection (a), the Director shall establish
a National Predisaster Mitigation Fund (Fund) which
shall be an account separate from any other accounts or
funds and shall be available, without fiscal year limitation,
for grants and other incentives to States and local govern-
ments and to nonprofit organizations to implement mitiga-
tion measures under standards and criteria established by
the Director.
‘‘(e) There are authorized to be appropriated to the
Fund established pursuant to subsection (d) of this section
such sums as may be necessary to implement this section.
‘‘(f) The Director shall take into account the follow-
ing when establishing priorities for predisaster mitigation
grant applications:
‘‘(1) The level and repetitive nature of the risks
to be mitigated.
‘‘(2) Demonstrated State or local government
commitment to reduce damages from future disas-
ters.
‘‘(3) Official commitment by the State or local
government that non-Federal financial commitments
are available for the mitigation measures to be un-
dertaken.
‘‘(4) Certification that mitigation projects in-
volving public facilities will meet or exceed the miti-
gation criteria and standards established by the Di-
rector under this section.
‘‘(5) Assurances that the mitigation projects
are not then the subject matter of litigation before
any Federal, State, or local court or administrative
agency.
‘‘(6) Assurances that the mitigation projects
will be completed expeditiously, in a time period mu-
tually agreed by the Director and the applicant.
‘‘(g) The Director shall review periodically the stand-
ards, criteria, and incentives established for mitigation
under this title, shall evaluate performance results of those
standards, criteria, and incentives, and shall make appro-
priate changes, as necessary, to enhance the effectiveness
of predisaster and postdisaster mitigation measures.’’.
SEC. 4. MANAGEMENT EXPENSES.
The Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) is amended
by adding a new section 322 at the end of title III as
follows:
‘‘SEC. 322. MANAGEMENT EXPENSES.
‘‘Notwithstanding the provisions of any other law or
administrative rule or guidance, for purposes of this title,
the President shall establish management cost rates for
grantees and subgrantees by rule. The President shall re-
view the management cost rates every 3 years. All pay-
ments for management costs shall be in lieu of any indi-
rect costs, administrative expenses, or any other expenses
not directly chargeable to a specific project under a major
disaster (title IV), emergency (title V), or an emergency
preparedness activity or measure (titles II and VI).’’.
SEC. 5. HAZARD MITIGATION.
Section 404 of The Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5170c) is
amended as follows:
(1) In subsection (a), insert ‘‘(1) FEDERAL
CONTRIBUTION.—’’ after ‘‘IN GENERAL.—’’.
(2) In the first sentence of subsection (a),
strike ‘‘up to’’ after ‘‘contribute’’ and insert ‘‘not
less than’’.
(3) Insert a new subsection (a)(2) as follows:
‘‘(2) INCENTIVES.—The President may provide by
regulation incentives for Federal shares of assistance up
to 90 percent for mitigation measures under this section
for applicants that, at a minimum, have implemented the
standards, incentives, and criteria established by the Di-
rector under section 203(c) in advance of major disasters
declared by the President under this Act.’’.
SEC. 6. FEDERAL COST SHARE
The Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) is amended
as follows:
(1) In section 201(d) (42 U.S.C. 5131(d))
strike ‘‘50 per centum’’ and insert ‘‘75 percent’’.
(2) In section 407(d) (42 U.S.C. 5173(d))
strike ‘‘shall not be less than’’ and insert ‘‘shall not
exceed’’.
(3) In section 611(f)(2) (42 U.S.C. 5196(f)(2))
strike ‘‘one-half’’ and insert ‘‘three-quarters’’.
(4) In section 611(j) (42 U.S.C. 5196(j)) strike
the text of paragraph (3) in its entirety and insert
‘‘The Director may contribute up to 75 percent of
the cost of organizational equipment.’’.
(5) In section 611(j) (42 U.S.C. 5196(j)) strike
the first sentence of paragraph (5) and insert ‘‘The
Director may contribute up to 75 percent of the eli-
gible costs for projects under this section.’’.
(6) In section 613(a) (42 U.S.C. 5196b(a))
strike ‘‘one-half’’ and insert ‘three-quarters’’.
(7) In section 614 (42 U.S.C. 5196c) strike all
after ‘‘matches’’ and insert ‘‘provides 25 percent of
the cost of such facilities.’’.
SEC. 7. REPAIR, RESTORATION, AND REPLACEMENT OF
DAMAGED FACILITIES.
Section 406 of The Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5172) is
amended as follows:
(1) Paragraph (2) of subsection (a) is amended
to read as follows:
‘‘(2) to a person who owns or operates a private
nonprofit facility damaged or destroyed by a major
disaster for the repair, restoration, reconstruction,
or replacement of such facility and for management
expenses incurred by such person: Provided, That no
contributions shall be made unless the owner or op-
erator of the facility has applied first for a Small
Business Administration disaster loan (15 U.S.C.
636(b)) and (A) has been determined to be ineligible
for such a loan, or (B) has obtained a loan in the
maximum amount for which the Small Business Ad-
ministration determines it is eligible.’’.
(2) Subsection (b) is repealed and a new sub-
section (b) is inserted as follows:
‘‘(b) COST SHARING.—
‘‘(1) GENERAL
RULE.—The President is au-
thorized to provide assistance under this section of
not less than 75 percent of the net eligible costs of
repair, restoration, reconstruction, or replacement
activities which are carried out under this section.
The President is authorized to provide assistance
under this section up to 90 percent of the net eligi-
ble costs of repair, restoration, reconstruction, or re-
placement activities that are carried out in the after-
math of major disasters which cause catastrophic
losses.
‘‘(2) INCREASED FEDERAL COST SHARE.—The
President may provide assistance under this section
up to 90 percent of the net eligible costs of repair,
restoration, reconstruction, or replacement activities
that are carried out under this section for those
State or local governments that have implemented
hazard mitigation measures in advance of major dis-
asters declared by the President under this Act and
that, at a minimum, have implemented the stand-
ards, incentives, and criteria established by the Di-
rector under section 203(c) in advance of major dis-
asters declared by the President under this Act.
‘‘(3) DECREASED FEDERAL COST SHARE.—The
President may reduce assistance under this section
to amounts less than 75 percent, but not less than
50 percent, of the net eligible costs of repair, res-
toration, reconstruction, or replacement activities
that are carried out under this section for those
State and local governments that are unable or un-
willing to take appropriate steps promptly and effi-
ciently to complete the processing of claims for as-
sistance under this section.’’.
(3) Subsection (c) is repealed and a new sub-
section (c) is inserted as follows:
‘‘(c) LARGE IN-LIEU CONTRIBUTIONS.—
‘‘(1) FOR PUBLIC FACILITIES.—(A) In any case
where a State or local government determines that
the public welfare would not be served best by re-
pairing, restoring, reconstructing, or replacing any
public facility owned or controlled by such State or
local government, it may elect to receive, in lieu of
a contribution under subsection (a)(1), a contribu-
tion of 75 percent of the Federal share of the Fed-
eral estimate of the cost of repairing, restoring, re-
constructing, or replacing such facility and of man-
agement expenses.
‘‘(B) Funds contributed under this subsection
may be used to repair, restore, or expand other eligi-
ble public facilities, to construct eligible new facili-
ties, or to fund hazard mitigation measures which
the State or local government determines to be nec-
essary to meet a need for governmental services and
functions in the area affected by the major disaster.
‘‘(2) FOR PRIVATE NONPROFIT FACILITIES.—
(A) In any case where a person who owns or oper-
ates a private nonprofit facility determines that the
public welfare would not be best served by repairing,
restoring, reconstructing, or replacing such facility,
such person may elect to receive, in lieu of a con-
tribution under subsection (a)(2), a contribution of
75 percent of the Federal share of the Federal esti-
mate of the cost of repairing, restoring, reconstruct-
ing, or replacing such facility and of management
expenses.
‘‘(B) Funds contributed under this subsection
may be used to repair, restore, or expand other eligi-
ble private nonprofit facilities owned or operated by
the applicant, to construct eligible new private non-
profit facilities to be owned or operated by the appli-
cant, or to fund hazard mitigation measures that
such private nonprofit organization determines to be
necessary to meet a need for its services and func-
tions in the area affected by the major disaster.’’.
(4) Subsection (e) of section 406 is amended to
read as follows:
‘‘(e)(1) For the purposes of this section, the estimate
of the cost of repairing, restoring, reconstructing, or re-
placing a public facility or private nonprofit facility on the
basis of the design of such facility as it existed imme-
diately before the major disaster and in conformity with
the applicable codes, specifications, and standards in effect
at the time of the major disaster declaration (including
floodplain management and hazard mitigation criteria re-
quired by the President or by the Coastal Barrier Re-
sources Act (16 U.S.C. 3501 et seq.) shall be treated as
the net eligible cost of such repair, restoration, reconstruc-
tion, or replacement.
‘‘(2) Within 18 months of the date of the enactment
of this section, the President shall, through the Director
of the Federal Emergency Management Agency, convene
an expert panel, including representation from the con-
struction industry, and shall develop cost estimating pro-
cedures consistent with industry practices.’’.
(5) Subsection (f) of section 406 is repealed.
SEC. 8. FEDERAL FINANCIAL ASSISTANCE.
(a) Section 408 of The Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5174)
is amended to read as follows:
‘‘SEC. 408. FEDERAL FINANCIAL ASSISTANCE.
‘‘(a) IN GENERAL.—The President may provide fi-
nancial assistance and, if necessary, direct services, to dis-
aster victims who, as a direct result of a major disaster,
have necessary expenses and serious needs for housing,
personal property, medical and dental or funeral expenses,
transportation costs, and other needs. The President shall
administer the program authorized by this section, and
shall promulgate rules and regulations to carry out its pro-
visions (which shall include criteria, standards, and proce-
dures for determining eligibility for assistance). No indi-
vidual or household shall receive financial assistance great-
er than $25,000 under this section with respect to a single
major disaster. Such limit shall be adjusted annually to
reflect changes in the Consumer Price Index for all Urban
Consumers published by the Department of Labor. The
types of assistance that may be provided under this section
are as follows:
‘‘(1) The President may provide financial or
other assistance to individuals or families to respond
to disaster-related housing needs of those who are
displaced from their predisaster primary residences,
or whose predisaster residences are rendered un-
inhabitable as a result of damage caused by a major
disaster. Individuals and households who have no
predisaster residence shall not be provided housing
assistance under this section. The most appropriate
forms of housing assistance to be provided to disas-
ter victims shall be determined in the President’s
discretion based upon considerations of cost-effec-
tiveness, convenience to disaster victims, and such
other factors as the President may deem appro-
priate. One or more forms of housing assistance may
be made available, based on the suitability and avail-
ability of the types of assistance to meet the disaster
victims’ verified needs in the particular disaster situ-
ation.
‘‘(2) Housing assistance may be provided to in-
dividuals or households to rent alternate housing ac-
commodations or existing rental units, manufactured
housing, recreational vehicles, or other readily fab-
ricated dwellings. The President may also directly
provide such housing units, acquired by purchase or
lease, to individuals or households who, because of
lack of available housing resources, would be unable
to make use of the assistance provided under this
section. Direct assistance shall continue for no
longer than 18 months after the President’s major
disaster declaration, unless the President determines
that it would be in the public interest to extend this
period due to extraordinary circumstances. After 18
months the President may charge fair market rent
for the accommodation being provided. The amount
of grant assistance shall be based on the fair market
rent for the accommodation being furnished plus the
cost of any transportation, utility hookups, or unit
installation not being directly provided by the Presi-
dent.
‘‘(3) Housing assistance may be provided to re-
pair owner-occupied private residences, utilities, and
residential infrastructure (such as private access
routes) damaged by a major disaster to habitable
condition where such assistance cannot be provided
by voluntary agency assistance, insurance proceeds,
or through disaster loan benefits from the Small
Business Administration.
‘‘(b) CERTAIN PERMANENT HOUSING CONSTRUC-
TION.—The President may provide financial assistance or
direct assistance to individuals or households to construct
permanent housing in remote locations (primarily insular
areas outside the continental United States) in cases
where no alternative housing resources are available;
where the types of temporary housing assistance enumer-
ated above are unavailable, infeasible, or not cost-effective;
and where such needs cannot be met by voluntary agency
assistance, insurance proceeds, or disaster loan benefits
from the Small Business Administration.
‘‘(c) SITES.—Any readily fabricated dwelling pro-
vided under this section shall, whenever possible, be lo-
cated on a site complete with utilities, and is provided by
the disaster victim, or the State or local government, by
the owner of the site, or by the occupant who was dis-
placed by the major disaster. Readily fabricated dwellings
may be located on sites provided by the President if the
President determines that such sites would be more eco-
nomical or accessible.
‘‘(d) DISPOSITION OF UNITS.—Notwithstanding any
other provision of law, housing units purchased by the
President for the purposes of housing disaster victims may
be disposed of as follows:
‘‘(1) Sold directly to individuals or households
who are occupants of temporary housing units if
such individuals and households need permanent
housing. Such sales shall be accomplished at prices
that are fair and equitable, as determined by the
President. Notwithstanding any other provision of
law, the proceeds of sale shall be deposited into the
appropriate Disaster Relief Fund account. The
President may use the services of the General Serv-
ices Administration to accomplish the sale.
‘‘(2) If not disposed of under paragraph (1) of
this subsection, temporary housing units may be re-
sold in the private market. Temporary housing units
may also be sold, transferred, donated, or otherwise
made available directly to States, other govern-
mental entities, and voluntary organizations for the
sole purpose of providing temporary housing to dis-
aster victims in major disasters and emergencies:
Provided, That as a condition of such sale, transfer,
or donation to States, other governmental agencies,
or voluntary organizations, a covenant to comply
with the nondiscrimination provisions of section 308
is agreed to. The State, other governmental agency,
or voluntary organization must also agree to obtain
and maintain hazard and flood insurance on the
transferred housing unit.
‘‘(e) OTHER NEEDS.—The President is authorized to
provide financial assistance to individuals or households
adversely affected by a major disaster to meet disaster-
related medical, dental, and funeral expenses, where such
individuals or households are unable to meet such needs
through insurance proceeds or voluntary agency assist-
ance. Financial assistance may also be authorized to ad-
dress personal property needs, transportation expenses,
and other necessary expenses or serious needs resulting
from the major disaster where such expenses and needs
cannot be met through insurance proceeds, voluntary
agency assistance, or through loan assistance from the
Small Business Administration.’’.
(b) Section 411 of such Act (42 U.S.C. 5178) is re-
pealed.
(c) Section 502(a)(6) of The Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C.
5192(a)(6)) is amended by deleting ‘‘temporary housing’’.
SEC. 9. REPEAL.
Section 417 of The Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5184) is
repealed.
SEC. 10. REPEAL.
Section 422 of The Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5189) is
repealed.
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