‘‘(3) for covering the costs of the Corporation
and administering and operating the insurance pro-
gram; and
‘‘(4) for covering travel expenses of members of
the Disaster Insurance Advisory Commission estab-
lished by section 826.
‘‘(d) MINIMUM CAPITAL REQUIREMENT.—
‘‘(1) IN GENERAL.—The Corporation shall at
all times maintain amounts in the reserve account
equal to or in excess of the applicable minimum cap-
ital level determined under paragraph (2).
‘‘(2) ESTABLISHMENT OF CAPITAL LEVELS.—
The Corporation shall establish a series of minimum
capital levels appropriate to ensure sufficient capital-
ization of the Corporation based on the nature and
extent of the underwriting, investment, and other
risks assumed by the Corporation. The capital levels
shall not be effective unless approved by the Direc-
tor.
‘‘(e) TAX-EXEMPT STATUS.—Any amounts deposited
in the reserve account, including income derived from the
investment of amounts under subsection (c)(2), shall be
exempt from all taxation now or hereafter imposed by the
United States, or by any State, county, municipality, or
local taxing authority.
‘‘SEC. 824. BORROWING AUTHORITY.
‘‘(a) IN GENERAL.—To the extent that the amounts
in the reserve fund are insufficient to pay claims and ex-
penses of the Corporation and maintain amounts in ac-
cordance with the requirements under section 823(d), the
Corporation may issue to the Secretary of the Treasury
notes and other obligations to cover the insufficiency.
‘‘(b) TERMS OF BORROWING.—The Secretary may
purchase obligations issued under subsection (a) only if
the President determines that the financial condition of
the Corporation is adequate to ensure repayment of the
obligations. Such obligations shall have terms and condi-
tions as determined by the Secretary of the Treasury.
‘‘SEC. 825. INITIAL FEDERAL CONTRIBUTION AND PROHIBI-
TION OF ADDITIONAL FEDERAL ASSISTANCE.
‘‘(a) AUTHORIZATION
OF
APPROPRIATIONS.—For
purposes of carrying out this title, there is authorized to
be appropriated to the Corporation an amount equal to
the difference between—
‘‘(1) the sum of any balances remaining, at the
end of September 30, 1998, in the Disaster Relief
appropriation and the Disaster Assistance Direct
Loan Program Account of the Federal Emergency
Management Agency; and
‘‘(2) the amounts determined by the Director to
be necessary to reserve from such appropriation and
in such Account for purposes of providing assistance
pursuant to any major disaster or emergency that
commences or occurs (or is declared or determined
to have commenced or occurred) on or before Sep-
tember 30, 1998.
‘‘(b) PROHIBITION OF FEDERAL ASSISTANCE.—Ex-
cept as provided in subsection (a) and section 824, no
Federal funds may be authorized, appropriated, or used
to fund any activity of the Corporation.
‘‘SEC. 826. DISASTER INSURANCE ADVISORY COMMISSION.
‘‘(a) ESTABLISHMENT.—There is hereby established
a commission to be known as the Disaster Insurance Advi-
sory Commission (in this section referred to as the ‘‘Com-
mission’’).
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—The Commission shall be
composed of 11 members appointed by the Presi-
dent, in consultation with the Director. Of the mem-
bers of the Commission, not less than 6 shall be in-
dividuals who have been nominated for such appoint-
ment by States that are participants in the Corpora-
tion, except that (to the extent possible) not more
than one such member may be appointed to the
Commission pursuant to the nomination of any sin-
gle State. Each member of the Commission shall
have experience or expertise in at least one of the
areas described in subparagraphs (A) through (D) of
paragraph (2).
‘‘(2) EXPERTISE.—The membership of the
Commission shall, at all times, include—
‘‘(A) not less than 1 individual who has ex-
perience or expertise in actuarial issues relating
to disaster insurance;
‘‘(B) not less than 1 individual who has ex-
perience or expertise in the management of in-
surance companies;
‘‘(C) not less than 1 individual who has ex-
perience or expertise in the regulation of insur-
ance companies; and
‘‘(D) not less than 1 individual who has
experience or expertise in disaster relief.
‘‘(3) TERMS.—
‘‘(A) IN GENERAL.—Each member of the
Commission shall be appointed for a term of 4
years, except as provided in subparagraph (B).
‘‘(B) INITIAL APPOINTEES.—As designated
by the President at the time of appointment, of
the members first appointed to the Commis-
sion—
‘‘(i) 5 shall be appointed for terms of
6 years; and
‘‘(ii) 6 shall be appointed for terms of
4 years.
‘‘(4) CHAIRPERSON.—The President shall des-
ignate a chairperson of the Commission from among
members appointed to the Commission.
‘‘(c) PROHIBITION OF PAY.—Members of the Com-
mission shall serve without pay.
‘‘(d) TRAVEL EXPENSES.—Each member of the
Commission shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with sections
5702 and 5703 of title 5, United States Code, except that
such expenses shall be paid by the Corporation.
‘‘(e) DUTIES.—The Commission shall—
‘‘(1) in coordination with the Director, assist
the Corporation in establishing the terms and condi-
tions of the insurance program under subtitle A, re-
view such terms and conditions, and approve or dis-
approve such terms and conditions as appropriate to
carry out this title; and
‘‘(2) review the annual premium charges estab-
lished under section 804 by the Corporation to de-
termine whether such charges are established in
compliance with the requirements of such section,
and if so, certify such compliance to the Corpora-
tion.
‘‘(f) CONTINUATION.—Section 14(a)(2)(B) of the
Federal Advisory Committee Act (5 U.S.C. App.; relating
to the termination of advisory committees) shall not apply
to the Commission.
‘‘SEC. 827. GAO AUDIT.
‘‘(a) INITIAL AUDIT.—As soon as practicable after
October 1, 1998, the Comptroller General of the United
States shall audit the activities of the Corporation and the
Disaster Insurance Advisory Commission established by
section 826 to ensure that such entities are complying
with the provisions of this title.
‘‘(b) SUCCESSIVE AUDITS.—After the completion of
the audit described in subsection (a), the Comptroller Gen-
eral shall conduct similar audits not less than once every
3 years.
‘‘(c) REPORTS.—The Comptroller General shall sub-
mit reports of the audits performed under this section to
the Congress.
‘‘Subtitle C—General Provisions
‘‘SEC. 851. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) BOARD.—The term ‘board’ means the
board of directors of the Corporation.
‘‘(2) CORPORATION.—The term ‘Corporation’
means the National Disaster Insurance Corporation.
‘‘(3) DIRECTOR.—The term ‘Director’ means
the Director of the Federal Emergency Management
Agency.
‘‘(4) DISASTER.—The term ‘disaster’ means
any natural catastrophe (including any hurricane,
tornado, storm, high water, winddriven water, tidal
wave, tsunami, earthquake, volcanic eruption, land-
slide, mudslide, snowstorm, or drought), or, regard-
less of cause, any fire, flood, serious accident, or ex-
plosion, in or affecting any State or part of a State.
‘‘(5) INSURANCE PROGRAM.—The term ‘insur-
ance program’ means the program established under
this title by the Corporation for disaster insurance
coverage.’’.
TITLE II—TERMINATION OF FED-
ERAL DISASTER LOAN PRO-
GRAMS
SEC. 201. TERMINATION OF SMALL BUSINESS ADMINISTRA-
TION DISASTER LOAN PROGRAM.
(a) IN GENERAL.—The Administrator of the Small
Business Administration may not make any loan, or enter
into an agreement to participate in any loan, under section
7(b) of the Small Business Act after the effective date of
this title.
(b) SAVINGS PROVISION.—Nothing in this section
may be construed to affect the validity of any right, duty,
or obligation of the United States or any other person
arising under or pursuant to any loan or other agreement
entered into under section 7(b) of the Small Business Act
before the effective date of this title.
(c) AUTHORITY TO DISCHARGE OBLIGATIONS.—In
discharging obligations of the Small Business Administra-
tion, and collecting loans and other obligations owed to
the Administration, under section 7(b) of the Small Busi-
ness Act, the Administrator of the Small Business Admin-
istration is authorized to exercise any authority provided
to the Administrator under the Small Business Act, as in
effect on the day before the effective date of this title.
(d) CONFORMING AMENDMENTS.—
(1) REPEALS.—The following provisions of the
Small Business Act (15 U.S.C. 631 et seq.) are re-
pealed:
(A) Section 2(g).
(B) Section 3(j).
(C) Section 3(k).
(D) Paragraphs (8) and (9) of section
5(b).
(E) Section 7(b).
(F) Paragraphs (2) through (7) of section
7(c).
(G) Section 7(f).
(H) Section 23.
(2) OTHER CONFORMING AMENDMENTS.—The
Small Business Act (15 U.S.C. 631 et seq.) is
amended—
(A) in section 4(c)(1)—
(i) by striking ‘‘are hereby estab-
lished’’ and inserting ‘‘is established’’; and
(ii) by striking ‘‘the following re-
volving funds:’’ and all that follows
through ‘‘; and (B)’’;
(B) in section 4(c)(2) by striking ‘‘(A) pur-
suant to’’ and all that follows through ‘‘and
(B)’’;
(C) in section 4(c)(3) by striking ‘‘the
funds’’ and inserting ‘‘the fund’’;
(D) in section 4(c)(4) by striking ‘‘each of
the funds’’ both places it appears and inserting
‘‘the fund’’;
(E) in section 4(c)(5)(A)—
(i) by striking ‘‘the revolving funds’’
and inserting ‘‘the revolving fund’’; and
(ii) by striking ‘‘out of the funds’’ and
inserting ‘‘out of the fund’’;
(F) in section 4(c)(5)(B)(i) by striking
‘‘the funds’’ and inserting ‘‘the fund’’;
(G) in section 4(c)(5)(B)(ii) by striking
‘‘or are made from amounts appropriated from
the disaster loan fund after October 1, 1980 or
are made from repayments of principal of loans
made from funds appropriated to the disaster
fund,’’;
(H) in section 5(b)(5) by striking ‘‘and
7(b)’’; and
(I) in section 10(a) by striking ‘‘disaster
relief,’’.
SEC. 202. REPEAL OF CONSOLIDATED FARM SERVICE
AGENCY EMERGENCY LOAN PROGRAM.
(a) IN GENERAL.—Subtitle C of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961–1970)
is amended by striking sections 321, 322, 323, 324, 326,
and 329.
(b) CONFORMING AMENDMENTS.—(1) Section 327 of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1967) is amended—
(A) by striking ‘‘(a)’’; and
(B) by striking subsection (b).
(2) Section 309(g)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1929(g)(1)) is amended
by inserting ‘‘(as in effect on September 30, 1998)’’ after
‘‘326’’.
(3) Section 343(a)(10) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(10)) is amend-
ed by striking ‘‘emergency loan (EM) under section 321,’’.
(4) Section 371(b) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f(b)) is amended—
(A) by adding ‘‘and’’ at the end of paragraph
(1);
(B) by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period; and
(C) by striking paragraph (3).
(c) TRANSITION RULE.—The amendments made by
this section shall not be construed to permit the violation
of any contract entered into before the effective date of
this title.
SEC. 203. REPEAL OF EMERGENCY RELIEF PROGRAM FOR
REPAIR OF HIGHWAYS.
Section 125 of title 23, United States Code, is re-
pealed.
SEC. 204. TERMINATION OF HUD MORTGAGE INSURANCE
PROGRAMS FOR DISASTER VICTIMS.
(a) SINGLE
FAMILY
HOME
MORTGAGE
INSUR-
ANCE.—Section 203(h) of the National Housing Act (12
U.S.C. 1709(h)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding any other provi-
sion of law, no mortgage may be insured under this sub-
section after the effective date of title II of the Disaster
Relief Partnership Act, except pursuant to a commitment
to insure entered into before such date.’’.
(b) INSURANCE FOR REHABILITATION LOANS.—Sec-
tion 203(k)(6) of the National Housing Act (12 U.S.C.
1709(h)) is amended by adding at the end the following
new sentence: ‘‘Notwithstanding any other provision of
law, no mortgage may be insured pursuant to this para-
graph after the effective date of title II of the Disaster
Relief Partnership Act, except pursuant to a commitment
to insure entered into before such date.’’.
SEC. 205. APPLICABILITY.
(a) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments under this title shall be made on October 1,
1998, and shall apply on and after such date, except to
the extent provided in subsection (b).
(b) INAPPLICABILITY TO DISASTERS DECLARED BE-
FORE EFFECTIVE DATE.—The provisions of law amended
by this title, as in effect on the day before the date re-
ferred to in subsection (a), shall continue to apply with
respect to any major disaster, natural disaster, disaster,
emergency, or catastrophic failure that commences or oc-
curs (or is declared or determined to have commenced or
occurred), before the date referred in subsection (a).
TITLE III—FEDERAL PROGRAM
FOR REIMBURSABLE DISAS-
TER 
RELIEF 
AND 
EMER-
GENCY ASSISTANCE
SEC. 301. AMENDMENT OF ROBERT T. STAFFORD DISASTER
RELIEF AND EMERGENCY ASSISTANCE ACT.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of The Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
SEC. 302. FINDINGS AND DECLARATIONS.
(a) FINDINGS.—Section 101(a) (42 U.S.C. 5121
note) is amended by striking ‘‘The’’ and inserting ‘‘FIND-
INGS.—Recognizing the importance of reducing the Fed-
eral deficit and allowing the individual States to regain
responsibility for management of activities within their
borders, the’’.
(b) DECLARATIONS.—Section 101(b) (42 U.S.C.
5121 note) is amended—
(1) by striking ‘‘an orderly’’ and all that follows
through ‘‘their’’ and inserting ‘‘a mechanism which
will allow affected States to carry out their’’;
(2) by striking ‘‘such’’;
(3) by redesignating paragraphs (1) through
(6) as paragraphs (2) through (7), respectively;
(4) by inserting before paragraph (2) (as so re-
designated) the following:
‘‘(1) establishing a private corporation which
will make available insurance to assist the States in
meeting their responsibilities for disaster relief;’’;
(5) in paragraph (2) (as so redesignated) by
striking ‘‘and broadening’’;
(6) in paragraph (5) (as so redesignated) by
striking ‘‘supplement or’’; and
(7) in paragraph (7) (as so redesignated) by in-
serting ‘‘reimbursable’’ before ‘‘assistance’’.
SEC. 303. WAIVER OF ADMINISTRATIVE CONDITIONS.
Section 301 (42 U.S.C. 5141) is amended by striking
‘‘Any’’ and inserting ‘‘Except as otherwise provided in this
title, any’’.
SEC. 304. EMERGENCY SUPPORT TEAMS.
Section 303 (42 U.S.C. 5144) is amended by striking
‘‘on either’’ and all that follows through ‘‘President,’’.
SEC. 305. REIMBURSEMENT.
Section 304 (42 U.S.C. 5147) is amended—
(1) by striking ‘‘may’’ and inserting ‘‘shall’’;
and
(2) by striking ‘‘under this Act’’ and all that
follows through the period at the end of the first
sentence and inserting ‘‘made under this Act with
respect to a major disaster or emergency by the
State or States affected by the disaster or emer-
gency.’’.
SEC. 306. PERFORMANCE OF SERVICES.
Section 306(b) (42 U.S.C. 5149(b)) is amended—
(1) by inserting before the first comma ‘‘with
respect to a major disaster or emergency’’; and
(2) by striking ‘‘. Such obligations’’ and insert-
ing a semicolon and the following:
‘‘if the Federal Government has entered into an agreement
with the State or States affected by the major disaster
or emergency for reimbursement of all costs incurred by
the United States with respect to such compensation, em-
ployment, and obligations. Such obligations’’.
any reimbursable assistance, loan, or advance authorized
by this Act may be provided.’’.
SEC. 308. TREATMENT OF ASSISTANCE.
Section 312 (42 U.S.C. 5155) is amended to read as
follows:
‘‘SEC. 312. TREATMENT OF ASSISTANCE.
‘‘Federal major disaster and emergency assistance
provided to individuals and families under this Act, and
comparable disaster assistance provided by States, local
governments, and disaster assistance organizations, shall
not be considered as income or a resource when determin-
ing eligibility for or benefit levels under federally funded
income assistance or resource-tested benefit programs.’’.
SEC. 309. LIABILITY.
Section 317 (42 U.S.C. 5160) is repealed.
SEC. 310. ADVANCE OF STATE EXPENDITURES.
Section 319 (42 U.S.C. 5162) is amended to read as
follows:
‘‘SEC. 319. ADVANCE OF STATE EXPENDITURES.
‘‘The President may lend or advance to a State as-
sistance for which the State is responsible under section
403 of this Act in any case in which the President deter-
mines that—
‘‘(1) the damages caused by a major disaster
are so overwhelming and severe that it is not pos-
sible for the State to assume immediately its finan-
cial responsibility under this Act; and
‘‘(2) the State has the ability to repay any such
loans or advances.’’.
SEC. 311. PROCEDURE FOR DECLARATION OF MAJOR DIS-
ASTER.
Section 401 (42 U.S.C. 5170) is amended—
(1) by inserting ‘‘reimbursable’’ after ‘‘Fed-
eral’’;
(2) by inserting before the period at the end of
the second sentence ‘‘and shall enter into an agree-
ment to reimburse the United States for all expenses
incurred in providing assistance under this Act with
respect to the disaster’’; and
(3) by striking ‘‘cost-sharing’’.
SEC. 312. GENERAL FEDERAL DISASTER ASSISTANCE.
Section 402 (42 U.S.C. 5170a) is amended—
(1) by striking ‘‘In’’ and inserting ‘‘(a) GEN-
ERAL AUTHORITY.—Subject to subsection (b), in’’;
(2) by striking ‘‘, with or without reimburse-
ment,’’; and
(3) by adding at the end the following:
‘‘(b) 
REIMBURSEMENT
AGREEMENT.—Assistance
may only be provided under this section if the affected
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance.’’.
SEC. 313. ESSENTIAL DISASTER ASSISTANCE.
Section 403 (42 U.S.C. 5170b) is amended—
(1) in subsection (a) by striking ‘‘Federal agen-
cies’’ and inserting ‘‘Subject to subsection (b), Fed-
eral agencies’’;
(2) by striking subsection (b) and inserting the
following:
‘‘(b) 
REIMBURSEMENT
AGREEMENT.—Assistance
may only be provided under this section if the affected
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance.’’;
(3) in subsection (c)(3) by striking ‘‘out of
funds made available to carry out this Act’’ and in-
serting ‘‘by the State’’;
(4) by striking paragraph (4);
(5) by redesignating paragraphs (5) and (6) of
subsection (c) as paragraphs (4) and (5), respec-
tively; and
(6) in subsection (c)(4) (as so redesignated) by
striking ‘‘Not later than’’ and all that follows
through ‘‘1988, the’’ and inserting ‘‘The’’.
SEC. 314. HAZARD MITIGATION.
Section 404 (42 U.S.C. 5170c) is repealed.
SEC. 315. REPAIR, RESTORATION, AND REPLACEMENT OF
DAMAGED FACILITIES.
Section 406 (42 U.S.C. 5172) is amended to read as
follows:
‘‘SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF
DAMAGED FACILITIES.
‘‘The President may provide assistance to a State—
‘‘(1) for the repair, restoration, reconstruction,
or replacement of a public facility which is damaged
or destroyed by a major disaster and for associated
expenses incurred by the State or a local government
thereof; or
‘‘(2) for the repair, restoration, reconstruction,
or replacement of a private nonprofit facility dam-
aged or destroyed by a major disaster and for asso-
ciated expenses incurred by the owner or operator of
such facility;
if the State agrees to reimburse the United States for all
expenses incurred in providing such assistance.’’.
SEC. 316. DEBRIS REMOVAL.
Section 407 (42 U.S.C. 5173) is amended—
(1) in subsection (a)(2) by striking ‘‘make
grants’’ and all that follows through ‘‘facility’’ and
inserting ‘‘provide assistance to any State’’;
(2) by striking the period at the end of sub-
section (a) and inserting a semicolon and the follow-
ing:
‘‘if the State agrees to reimburse the United States for
all expenses incurred in providing such assistance.’’;
(3) in subsection (b) by striking ‘‘or local gov-
ernment’’; and
(4) by striking subsection (d).
SEC. 317. TEMPORARY HOUSING ASSISTANCE.
Section 408 (42 U.S.C. 5174) is amended to read as
follows:
‘‘SEC. 408. TEMPORARY HOUSING ASSISTANCE.
‘‘(a) PROVISION
OF TEMPORARY HOUSING.—The
President may provide assistance to a State for the provi-
sion of temporary housing (including unoccupied habitable
dwellings), suitable rental housing, mobile homes, or other
readily fabricated dwellings to persons who, as a result
of a major disaster, require temporary housing if the State
agrees to reimburse the United States for all expenses in-
curred in providing such assistance.
‘‘(b) MOBILE HOME SITE.—
‘‘(1) IN GENERAL.—Any mobile home or other
readily fabricated dwelling provided under this sec-
tion shall whenever possible be located on a site
which—
‘‘(A) is provided by the State or local gov-
ernment; and
‘‘(B) has utilities provided by the State or
local government, by the owner of the site, or
by the occupant who was displaced by the
major disaster.
‘‘(2) OTHER SITES.—Mobile homes and other
readily fabricated dwellings may be located on sites
provided by the President if the President deter-
mines that such sites would be more economical or
accessible than sites described in paragraph (1).’’.
SEC. 318. MINIMUM STANDARDS FOR PUBLIC AND PRIVATE
STRUCTURES.
Section 409 (42 U.S.C. 5176) is repealed.
SEC. 319. UNEMPLOYMENT ASSISTANCE.
Section 410 (42 U.S.C. 5177) is amended—
(1) in subsection (a) by inserting before the pe-
riod at the end ‘‘and ensure that the United States
will be reimbursed by the States for all expenses in-
curred in providing assistance under this sub-
section’’; and
(2) in subsection (b)(2) by inserting before the
period at the end ‘‘if the State agrees to reimburse
the United States for all expenses incurred in pro-
viding such assistance’’.
SEC. 320. INDIVIDUAL AND FAMILY GRANT PROGRAMS.
Section 411 (42 U.S.C. 5178) is repealed.
SEC. 321. CRISIS COUNSELING ASSISTANCE AND TRAINING.
Section 416 (42 U.S.C. 5183) is amended—
(1) by striking ‘‘or local agencies or private
mental health organizations to provide’’ and insert-
ing ‘‘agencies to provide (or to contract with local
agencies or private mental health organizations for
the provision of)’’; and
(2) by inserting before the period at the end ‘‘if
the State agrees to reimburse the United States for
all expenses incurred in providing such services and
assistance’’.
SEC. 322. COMMUNITY DISASTER LOANS.
Section 417 (42 U.S.C. 5184) is repealed.
SEC. 323. EMERGENCY COMMUNICATIONS.
Section 418 (42 U.S.C. 5185) is amended by insert-
ing before the period at the end ‘‘if the State agrees to
reimburse the United States for all expenses incurred in
providing assistance under this section’’.
SEC. 324. EMERGENCY PUBLIC TRANSPORTATION.
Section 419 (42 U.S.C. 5186) is amended by insert-
ing before the period at the end ‘‘if the State agrees to
reimburse the United States for all expenses incurred in
providing assistance under this section’’.
SEC. 325. FIRE SUPPRESSION.
Section 420 (42 U.S.C. 5187) is amended—
(1) by striking the section heading and ‘‘SEC.
420.’’ and inserting the following:
‘‘SEC. 420. FIRE SUPPRESSION ASSISTANCE.’’
(2) by striking ‘‘, including grants,’’; and
(3) by inserting before the period at the end ‘‘if
the State agrees to reimburse the United States for
all expenses incurred in providing assistance under
this section’’.
SEC. 326. TIMBER SALE CONTRACTS.
Section 421(d) (42 U.S.C. 5188(d)) is amended—
(1) by striking ‘‘make grants to any State or
local government’’ and inserting ‘‘provide financial
assistance to any State’’;
(2) by inserting after ‘‘major disaster’’ the fol-
lowing: ‘‘if the State agrees to reimburse the United
States for all expenses incurred in providing such as-
sistance’’;
(3) by striking ‘‘or local government is’’ and in-
serting ‘‘is’’; and
(4) by striking ‘‘such grants’’ and inserting
‘‘assistance’’.
SEC. 327. SIMPLIFIED PROCEDURE.
Section 422 (42 U.S.C. 5189) is repealed.
SEC. 328. APPEALS OF ASSISTANCE DECISIONS.
Section 423 (42 U.S.C. 5189a) is repealed.
SEC. 329. PROCEDURE FOR DECLARATION.
Section 501 (42 U.S.C. 5191) is amended—
(1) in subsection (a) by inserting ‘‘reimburs-
able’’ after ‘‘Federal’’ the first place it appears;
(2) by inserting before the period at the end of
the second sentence of subsection (a) ‘‘and shall
enter into an agreement to reimburse the United
States for all expenses incurred in providing assist-
ance under this Act with respect to the emergency’’;
and
(3) in subsection (b) by striking ‘‘or section
503’’.
SEC. 330. FEDERAL EMERGENCY ASSISTANCE.
Section 502 (42 U.S.C. 5192) is amended—
(1) in subsection (a) by striking ‘‘In’’ and in-
serting ‘‘Subject to subsection (c), in’’;
(2) in subsection (a)(1) by striking ‘‘, with or
without reimbursement,’’;
(3) in subsection (b) by striking ‘‘Whenever’’
and inserting ‘‘Subject to subsection (c), whenever’’;
and
(4) by adding at the end the following:
‘‘(c) 
REIMBURSEMENT
AGREEMENT.—Assistance
may only be provided under this section if the affected
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance.’’.
SEC. 331. AMOUNT OF ASSISTANCE.
Section 503 (42 U.S.C. 5193) is repealed.
SEC. 332. APPLICABILITY.
(a) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments under this title shall be made on October 1,
1998, and shall apply on and after such date, except to
the extent provided in subsection (b).
(b) INAPPLICABILITY TO DISASTERS DECLARED BE-
FORE EFFECTIVE DATE.—The provisions of law amended
by this title, as in effect on the day before the date re-
ferred to in subsection (a), shall continue to apply with
respect to any major disaster or emergency that com-
mences or occurs (or is declared or determined to have
commenced or occurred) before the date referred in sub-
section (a).
Æ