I
105TH CONGRESS
2D SESSION
H. R. 3728
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance
Act and other laws to return primary responsibility for disaster relief
to the States, to establish a private corporation to insure States against
risks and costs of disasters otherwise borne by the States, and to provide
for reimbursable Federal assistance to States for activities in response
to disasters, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 23, 1998
Mr. OBEY introduced the following bill; which was referred to the Committee
on Transportation and Infrastructure, and in addition to the Committees
on Agriculture, Small Business, and Banking and Financial Services, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To amend the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act and other laws to return primary
responsibility for disaster relief to the States, to establish
a private corporation to insure States against risks and
costs of disasters otherwise borne by the States, and
to provide for reimbursable Federal assistance to States
for activities in response to disasters, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Disaster Relief Partnership Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
TITLE I—NATIONAL DISASTER INSURANCE PROGRAM
Sec. 101. Disaster insurance program.
TITLE II—TERMINATION OF FEDERAL DISASTER LOAN
PROGRAMS
Sec. 201. Termination of Small Business Administration disaster loan program.
Sec. 202. Repeal of Consolidated Farm Service Agency emergency loan pro-
gram.
Sec. 203. Repeal of emergency relief program for repair of highways.
Sec. 204. Termination of HUD mortgage insurance programs for disaster vic-
tims.
Sec. 205. Applicability.
TITLE III—FEDERAL PROGRAM FOR REIMBURSABLE DISASTER
RELIEF AND EMERGENCY ASSISTANCE
Sec. 301. Amendment of Robert T. Stafford Disaster Relief and Emergency As-
sistance Act.
Sec. 302. Findings and declarations.
Sec. 303. Waiver of administrative conditions.
Sec. 304. Emergency support teams.
Sec. 305. Reimbursement.
Sec. 306. Performance of services.
Sec. 307. Reimbursement agreements and conditions.
Sec. 308. Treatment of assistance.
Sec. 309. Liability.
Sec. 310. Advance of State expenditures.
Sec. 311. Procedure for declaration of major disaster.
Sec. 312. General Federal disaster assistance.
Sec. 313. Essential disaster assistance.
Sec. 314. Hazard mitigation.
Sec. 315. Repair, restoration, and replacement of damaged facilities.
Sec. 316. Debris removal.
Sec. 317. Temporary housing assistance.
Sec. 318. Minimum standards for public and private structures.
Sec. 319. Unemployment assistance.
Sec. 320. Individual and family grant programs.
Sec. 321. Crisis counseling assistance and training.
Sec. 322. Community disaster loans.
Sec. 323. Emergency communications.
Sec. 324. Emergency public transportation.
Sec. 325. Fire suppression.
Sec. 326. Timber sale contracts.
Sec. 327. Simplified procedure.
Sec. 328. Appeals of assistance decisions.
Sec. 329. Procedure for declaration.
Sec. 330. Federal emergency assistance.
Sec. 331. Amount of assistance.
Sec. 332. Applicability.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) while disasters can strike anywhere within
the United States, certain areas historically have
been more susceptible or vulnerable to disasters;
(2) the Federal Government has assumed the
financial responsibility for much of the emergency
relief and reconstruction provided after disasters;
(3) the amount of Federal financial assistance
provided for disaster relief has been steadily increas-
ing over time and the annual disaster relief obliga-
tions of the Federal Emergency Management Agency
have increased more than tenfold over the past 13
years, 
from 
$320,000,000 
in 
1985 
to
$4,700,000,000 in 1997;
(4) the costs of disaster assistance have been
spread disproportionately to all United States citi-
zens rather than to citizens of the areas that are
most directly affected; and
(5) an amendment to the Constitution of the
United States requiring a balanced Federal budget
‘‘TITLE VIII—DISASTER
INSURANCE PROGRAM
‘‘Subtitle A—Insurance Program
‘‘SEC. 801. ESTABLISHMENT OF INSURANCE PROGRAM.
‘‘The National Disaster Insurance Corporation estab-
lished under subtitle B shall establish and carry out an
insurance program under this subtitle to provide coverage
to States against certain losses and costs arising from dis-
asters, which shall be funded solely by State premiums
and payments and shall operate on an actuarially sound
basis.
‘‘SEC. 802. TERMS AND CONDITIONS OF INSURANCE PRO-
GRAM.
‘‘(a) IN GENERAL.—The Corporation shall establish
the terms and conditions for the provision of disaster in-
surance under the disaster insurance program of the Cor-
poration, which shall include—
‘‘(1) the general terms and conditions of insur-
ance coverage;
‘‘(2) limitations on the scope and amounts of
coverage provided;
‘‘(3) the establishment, under section 804, of
appropriate annual premium charges;
‘‘(4) appropriate loss deductibles; and
‘‘(5) the methods by which proved and approved
claims for losses shall be adjusted and paid.
‘‘(b) OBJECTIVES.—In establishing the terms and
conditions under this section, the Corporation shall ensure
that the insurance program accomplishes the following ob-
jectives:
‘‘(1) 
RECOVERY
FROM
DISASTERS.—The
amount of coverage provided under the program
shall be sufficient to provide State participants with
amounts adequate for recovery from disasters.
‘‘(2) EQUITABLE DISTRIBUTION OF RISKS AND
COSTS.—The risks and costs of disasters shall be eq-
uitably distributed among the State participants.
‘‘(3) PARTICIPATION.—Participation in the pro-
gram by all States shall be encouraged.
‘‘(c) ASSISTANCE.—The terms and conditions of the
insurance program shall be established in consultation
with the Director of the Federal Emergency Management
Agency, the Disaster Insurance Advisory Committee under
section 826, and other relevant Federal agencies and shall
be effective only if approved by the Director and the Advi-
sory Committee.
‘‘SEC. 803. COVERAGE.
‘‘(a) IN GENERAL.—The insurance program shall
provide insurance coverage under this subtitle for each
participant in the Corporation. The initial coverage avail-
able under the program shall take effect on October 1,
1998.
‘‘(b) ELIGIBLE INSUREDS.—The insurance program
may provide insurance coverage only to participants and
each State shall be eligible to become a participant pursu-
ant to the requirements of section 821(d).
‘‘(c) SCOPE OF COVERAGE.—The insurance program
may provide coverage only for the following losses and
costs to a participant that arise from a disaster:
‘‘(1) LIFESAVING
MEASURES.—Costs of per-
forming any work or services essential to saving lives
and protecting and preserving property or public
health and safety, including—
‘‘(A) removing debris and wreckage;
‘‘(B) conducting search and rescue, and
providing emergency medical care, emergency
mass care, emergency shelter, food, water, med-
icine, and other essential needs, including move-
ment of supplies or persons;
‘‘(C) clearing roads and constructing tem-
porary bridges necessary to the performance of
emergency tasks and essential community serv-
ices;
‘‘(D) providing temporary facilities for
schools and other essential community services;
‘‘(E) demolishing unsafe structures that
endanger the public;
‘‘(F) warning of further risks and hazards;
‘‘(G) disseminating of public information
and assistance regarding health and safety
measures; and
‘‘(H) reducing immediate threats to life,
property, and public health and safety.
‘‘(2) DISTRIBUTION OF FOOD AND MEDICAL AS-
SISTANCE.—Costs of distributing or rendering food,
medicine, and other consumable supplies, and other
services and assistance to victims of the disaster.
‘‘(3) COORDINATION.—Costs of coordinating re-
lief efforts.
‘‘(4) TECHNICAL ADVICE.—Costs of obtaining
technical advice regarding—
‘‘(A) disaster management and control;
‘‘(B) performing essential community serv-
ices; and
‘‘(C) disseminating information regarding
public health and safety, issuing warnings of
risks and hazards.
‘‘(5) HAZARD MITIGATION.—Costs of conduct-
ing hazard mitigation measures that the Corporation
determines to be cost-effective and that will substan-
tially reduce the risk of future damage, hardship,
loss, or suffering in any area affected by the disas-
ter.
‘‘(6) REPAIR AND REPLACEMENT OF DAMAGED
FACILITIES AND RESIDENCES.—Costs for the repair,
restoration, reconstruction, or replacement of facili-
ties (including public, private, and private nonprofit
facilities, and commercial and agricultural facilities)
and residences that are damaged or destroyed by the
disaster and for associated expenses incurred by the
owners of the facilities and residences, and losses
from damage or destruction to such facilities and
residences.
‘‘(7) TEMPORARY HOUSING.—Costs of provid-
ing, by purchase or lease, temporary housing (in-
cluding unoccupied habitable dwellings), suitable
rental housing, mobile homes, or other readily fab-
ricated dwellings to persons who, as a result of the
disaster, require temporary housing.
‘‘(8) TEMPORARY MORTGAGE AND RENTAL PAY-
MENTS.—Costs of providing assistance on a tem-
porary basis in the form of mortgage or rental pay-
ments to or on behalf of individuals and families
who, as a result of financial hardship caused by the
disaster, have received written notice of disposses-
sion or eviction from a residence by reason of a fore-
closure of any mortgage or lien, cancellation of any
contract of sale, or termination of any lease, entered
into prior to such disaster, except that such costs
may not cover assistance provided for a duration ex-
ceeding the period of financial hardship or 18
months, whichever is less.
‘‘(9) COUNSELING.—Costs of professional coun-
seling services to victims of the disaster to relieve
mental health problems caused or aggravated by the
disaster or its aftermath.
‘‘(10) LOST REVENUE.—Loss to a participant
of a substantial portion of tax and other revenues,
but only if the participant demonstrates a need for
reimbursement of such losses to perform its govern-
mental functions.
‘‘(11) TEMPORARY
COMMUNICATIONS.—Costs
of establishing temporary communications systems
in the area affected by the disaster.
‘‘(12) TEMPORARY PUBLIC TRANSPORTATION.—
Costs of providing temporary public transportation
service in the area affected by the disaster to meet
‘‘(1) NONDISASTER
LOSSES.—Any losses or
costs not arising from a disaster.
‘‘(2) FEDERAL
FACILITIES.—Any losses or
costs sustained by or relating to Federal facilities.
‘‘SEC. 804. ANNUAL PREMIUM CHARGES.
‘‘(a) GENERAL AUTHORITY.—The Corporation shall
require each State, as a condition of participation in the
Corporation and coverage under the insurance program
during any fiscal year, to make a premium payment to
the Corporation for such fiscal year in an amount deter-
mined in accordance with this section. The Corporation
shall annually review the premium payments charged to
each participant and, if appropriate, adjust such payment
amounts.
‘‘(b) ESTABLISHMENT OF CHARGES.—The premium
payments established under this section shall be—
‘‘(1) established using generally accepted actu-
arial principles;
‘‘(2) to the maximum extent practicable, based
on a consideration of the respective risks involved,
including differences in—
‘‘(A) the risk of occurrence of disasters;
‘‘(B) hazard mitigation measures in place,
including any disaster preparedness plan of the
participant for mitigation, warning, emergency
operations, rehabilitation, and recovery;
‘‘(C) anticipated covered losses and costs
in the event of a disaster; and
‘‘(D) the extent to which other sources of
insurance or assistance will cover costs and
losses for types of property and activities cov-
ered in a State; and
‘‘(3) adequate, on the basis of generally accept-
ed actuarial principles, to provide—
‘‘(A) amounts in the reserve account of the
Corporation under section 823 for anticipated
claims; and
‘‘(B) for any administrative and operating
expenses of the Corporation in carrying out the
insurance program.
‘‘(c) CERTIFICATION OF PREMIUM CHARGES.—The
Corporation may not assess any premium charges estab-
lished under this section before the charges have been cer-
tified as actuarially sound by the Disaster Insurance Advi-
sory Commission established by section 826.
‘‘(d) CREDIT
FOR INITIAL CONTRIBUTIONS.—The
Corporation shall credit the amount of the payment made
by a State pursuant to section 821(d)(1) toward any pre-
mium charges under this section owed by the State.
‘‘SEC. 805. CLAIMS.
‘‘(a) PROCEDURE.—The Corporation shall adjust and
pay all claims for proved and approved losses and costs
covered by insurance provided under this subtitle.
‘‘(b) EFFECT
OF DUPLICATIVE COVERAGE.—The
amount of any claim paid for losses or costs under the
insurance program may not include any amount for any
portion of such losses or costs covered by amounts pro-
vided under any other source of insurance or financial as-
sistance.
‘‘(c) EFFECT OF FLOOD INSURANCE COVERAGE.—
‘‘(1) REDUCTION OF FEDERAL ASSISTANCE.—If
a facility or residence located in a special flood haz-
ard area identified for more than 1 year by the Di-
rector pursuant to the National Flood Insurance Act
of 1968 is damaged or destroyed by flooding in a
disaster and such facility or residence is not covered
on the date of such flooding by flood insurance, the
amount of a claim for coverage under this subtitle
which would otherwise be paid under the insurance
program under this subtitle for costs of repair, res-
toration, reconstruction, and replacement of such fa-
cility or residence and associated expenses shall be
reduced in accordance with paragraph (2).
‘‘(2) AMOUNT OF REDUCTION.—The amount of
the reduction in a claim for a facility or residence
pursuant to paragraph (1) shall be the lesser of—
(A) the value of such facility or residence
on the date of the flood damage or destruction;
or
(B) the maximum amount of insurance
proceeds which would have been payable with
respect to such facility or residence if such fa-
cility had been covered by flood insurance under
the National Flood Insurance Act of 1968 on
such date.
‘‘(3) EXCEPTION.—Paragraphs (1) and (2)
shall not apply to a private nonprofit facility or resi-
dence that is not covered by flood insurance solely
because of the local government’s failure to partici-
pate in the flood insurance program under the Na-
tional Flood Insurance Act of 1968.
‘‘(d) CAUSE OF ACTION.—If the Corporation dis-
allows a claim or the claimant refuses to accept the
amount allowed upon any claim, the claimant may, before
the expiration of the 1-year period beginning upon the
claimant’s receipt of written notice of the disallowance or
partial disallowance of the claim, institute an action on
such claim against the Corporation in the United States
District Court for the District of Columbia. Original exclu-
sive jurisdiction is hereby conferred upon such Court to
hear and determine such action without regard to the
amount in controversy.
‘‘Subtitle B—National Disaster In-
surance Corporation and Disas-
ter Insurance Advisory Commis-
sion
‘‘SEC. 821. NATIONAL DISASTER INSURANCE CORPORA-
TION.
‘‘(a) ESTABLISHMENT.—There is authorized to be es-
tablished a body corporate to be known as the National
Disaster Insurance Corporation, which shall be subject to
the provisions of this title. The Corporation shall not be
an agency or establishment of the Federal Government.
The principal office of the Corporation shall be located in
the District of Columbia or the metropolitan area thereof.
‘‘(b) FUNCTION.—The purpose of the Corporation
shall be to carry out the insurance program under
subtitle A.
‘‘(c) GOVERNANCE.—
‘‘(1) BOARD OF DIRECTORS.—The Corporation
shall be under the direction of a board of directors
who shall be elected by the participants in the Cor-
poration. Members of the board shall not be consid-
ered, by reason of such membership, to be employees
of the Federal Government.
‘‘(2) INITIAL BOARD.—Except as otherwise pro-
vided by the Corporation pursuant to section
822(2)—
‘‘(A) the board shall be composed of 7
members, selected by a majority of the partici-
pants in the Corporation through an election (i)
that shall take place at the initial organiza-
tional meeting of the Corporation held pursuant
to subsection (e)(1), and (ii) in which each of
the participants shall have 1 vote; and
‘‘(B) the term of each member of the
board shall be 5 years.
‘‘(d) PARTICIPANTS.—A State shall be considered as
a participant in the Corporation for purposes of this title
only if the State complies with the following requirements:
‘‘(1) INITIAL CONTRIBUTION.—The State has
made a payment to the Corporation (or to the Direc-
tor pursuant to subsection (e)(2)) in an amount
equal to 1 percent of the aggregate amount of Fed-
eral financial assistance provided, during fiscal years
1988 through 1997, to the State (or to or on behalf
of persons or property located in the State) for dis-
aster relief relating to a major disaster or emergency
SEC. 307. REIMBURSEMENT AGREEMENTS AND CONDI-
TIONS.
Section 311 (42 U.S.C. 5154) is amended to read as
follows:
‘‘SEC. 311. REIMBURSEMENT AGREEMENTS AND CONDI-
TIONS.
‘‘(a) REPAYMENT.—Assistance may only be provided
under this Act with respect to damage caused by a major
disaster or emergency within the borders of a State if a
State has agreed to reimburse the United States for all
expenses incurred by the United States in providing such
assistance. Such assistance, including a loan or advance
made under section 319, shall be repaid to the United
States.
‘‘(b) INTEREST.—Assistance provided under this Act
with respect to which a State agrees to reimburse the
United States for all expenses incurred in providing such
assistance, including loans and advances made under this
Act, shall bear interest at a rate determined by the Sec-
retary of the Treasury, taking into consideration the cur-
rent market yields on outstanding marketable obligations
of the United States with remaining periods of maturity
comparable to the reimbursement period of the reimburs-
able assistance provided.
‘‘(c) REGULATIONS.—The President shall issue regu-
lations describing the terms and conditions under which