would require major retrenchments in activities that
assist citizens of the United States in times of crises
and distress.
(b) PURPOSES.—The purposes of this Act are—
(1) to reaffirm the individual States’ primary
responsibility for disaster relief;
(2) to restore the Federal Government’s role for
disaster relief to one of secondary support, provided
on a reimbursable basis, in unusual or special emer-
gency situations that require services best provided
by Federal agencies;
(3) to establish a private corporation to provide
risk-based insurance to the individual States to as-
sist the States in meeting their obligations in disas-
ter relief; and
(4) to repeal existing Federal grant and loan
programs for disaster aid.
TITLE I—NATIONAL DISASTER
INSURANCE PROGRAM
SEC. 101. DISASTER INSURANCE PROGRAM.
The Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) is amended
by adding at the end the following new title:
emergency needs and to provide transportation to
governmental offices, supply centers, stores, post of-
fices, schools, major employment centers, and such
other places as may be necessary in order to enable
the community to resume its normal pattern of life
as soon as possible.
‘‘(13) FIRE
SUPPRESSION.—Costs of equip-
ment, supplies, and personnel for the suppression of
any fire on publicly or privately owned forest or
grassland.
‘‘(14) LOAN
AND
ASSISTANCE
PROGRAMS.—
Losses and costs associated with providing the fol-
lowing assistance:
‘‘(A) SMALL
BUSINESS
LOANS.—Loans
for—
‘‘(i) the repair, rehabilitation, or re-
placement of properties of small business
concerns that are damaged or destroyed as
a result of the disaster;
‘‘(ii) refinancing mortgages or other
liens against residences and properties of
small business concerns that are destroyed
or substantially damaged as a result of the
disaster; and
‘‘(iii) assisting small business concerns
that suffer substantial economic injury as
a result of the disaster.
‘‘(B) FARM LOANS.—Emergency loans to
persons whose farming, ranching, or aqua-
culture operations have been substantially af-
fected by a disaster.
‘‘(C) HIGHWAY
REPAIR.—Assistance for
the repair or reconstruction of highways, roads,
and trails that suffer serious damage as the re-
sult of the disaster.
‘‘(D) INSURANCE OF LOANS FOR SINGLE
FAMILY HOMES.—Insurance for mortgages and
rehabilitation loans for 1- to 4-family residences
of mortgagors and borrowers whose residences
are destroyed or damaged as a result of the dis-
aster.
‘‘(15) OTHER.—Any other costs or losses sus-
tained in providing disaster relief in the State, that
are determined by the Corporation to be appropriate
and which are not inconsistent with the provisions of
this subtitle.
‘‘(d) PROHIBITED COVERAGE.—The insurance pro-
gram may not provide coverage for the following losses
and costs:
purposes of the meeting and shall organize and chair
the meeting.
‘‘(2) COLLECTION
OF
INITIAL
CONTRIBU-
TIONS.—Before the organization of the Corporation
pursuant to paragraph (1), the Director shall collect
payments under subsection (d)(1) on behalf of the
Corporation.
‘‘(f) OWNERSHIP.—The Corporation shall be pri-
vately owned by the participants in the insurance pro-
gram. Obligations and indebtedness of the Corporation
shall not be considered obligations and indebtedness of the
Federal Government or guaranteed by the Federal Gov-
ernment.
‘‘(g) OFFICERS AND EMPLOYEES.—The Corporation
may appoint and hire officers and employees at the discre-
tion of the Corporation, but may not pay any officer or
employee at a rate exceeding the rate of basic pay payable
for level IV of the Executive Schedule. Any such officers
and employees shall not be considered officers or employ-
ees of the Federal Government and shall not be subject
to the provisions of title 5, United States Code.
‘‘(h) POWERS.—The Corporation shall have the
power—
‘‘(1) to adopt, alter, and use a corporate seal;
‘‘(2) to make and enforce contracts and agree-
ments appropriate to carry out this title;
‘‘(3) to settle, adjust, compromise, and release
claims against the corporation;
‘‘(4) to sue and be sued;
‘‘(5) to acquire, hold, and own, and deal with
and dispose of real and personal property to the ex-
tent appropriate to carry out this title;
‘‘(6) to have succession until dissolved by Act of
Congress; and
‘‘(7) to exercise all other lawful powers nec-
essary or appropriate to carry out this title.
‘‘SEC. 822. STRUCTURE AND OPERATIONS.
‘‘After consultation with the Director and other ap-
propriate Federal agencies, the Corporation shall establish
appropriate guidelines for the structure and operation of
the Corporation and the insurance program, which—
‘‘(1) shall include standards relating to the va-
cancies, bylaws, and powers of the board;
‘‘(2) may include provisions, applicable only
after October 1, 1998, establishing the composition
of the board and the terms of office of the members
of the board other than as provided for in section
821(c)(2); and
‘‘(3) shall include a minimum capital require-
ment pursuant to section 823(d).
‘‘SEC. 823. RESERVE ACCOUNT.
‘‘(a) ESTABLISHMENT.—The Corporation shall estab-
lish and manage a reserve account for the operation of
the insurance program.
‘‘(b) CREDITS.—The reserve account of the Corpora-
tion shall be credited with—
‘‘(1) any premium charges under section 804
collected by the Corporation;
‘‘(2) any amounts appropriated for the Cor-
poration pursuant to section 825(a); and
‘‘(3) any interest earned on investments of the
Corporation pursuant to subsection (c)(2).
‘‘(c) USE.—Amounts in the reserve account of the
Corporation shall be available—
‘‘(1) for payment of qualifying claims under the
insurance program of participants, consistent with
the terms and conditions established under section
802(a);
‘‘(2) to the extent that the Corporation deter-
mines that such amounts are in excess of current
needs and the amount required to be held in the re-
serve account pursuant to subsection (d), for invest-
ment as the Corporation considers appropriate;