106TH CONGRESS
2D SESSION
H.R. 707
HOUSE AMENDMENT TO
SENATE AMENDMENT
In the House of Representatives, U. S.,
October 3, 2000.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 707) entitled ‘‘An Act to amend the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act to authorize a program for predisaster mitigation, to
streamline the administration of disaster relief, to control the
Federal costs of disaster assistance, and for other purposes’’,
with the following
HOUSE AMENDMENT TO SENATE AMENDMENT:
In lieu of the matter proposed to be inserted by the
amendment of the Senate, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Dis-
aster Mitigation Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—PREDISASTER HAZARD MITIGATION
Sec. 101. Findings and purpose.
Sec. 102. Predisaster hazard mitigation.
Sec. 103. Interagency task force.
Sec. 104. Mitigation planning; minimum standards for public and private struc-
tures.
TITLE II—STREAMLINING AND COST REDUCTION
Sec. 201. Technical amendments.
Sec. 202. Management costs.
Sec. 203. Public notice, comment, and consultation requirements.
Sec. 204. State administration of hazard mitigation grant program.
Sec. 205. Assistance to repair, restore, reconstruct, or replace damaged facilities.
Sec. 206. Federal assistance to individuals and households.
Sec. 207. Community disaster loans.
Sec. 208. Report on State management of small disasters initiative.
Sec. 209. Study regarding cost reduction.
TITLE III—MISCELLANEOUS
Sec. 301. Technical correction of short title.
Sec. 302. Definitions.
Sec. 303. Fire management assistance.
Sec. 304. President’s Council on Domestic Terrorism Preparedness.
Sec. 305. Disaster grant closeout procedures.
Sec. 306. Public safety officer benefits for certain Federal and State employees.
Sec. 307. Buy American.
Sec. 308. Treatment of certain real property.
Sec. 309. Study of participation by Indian tribes in emergency management.
TITLE I—PREDISASTER HAZARD
MITIGATION
SEC. 101. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(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 re-
duce 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 Emergency As-
sistance 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—
(A) form effective community-based partner-
ships 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 hazard
mitigation efforts to be applied to new and exist-
ing structures.
(b) PURPOSE.—The purpose of this title is to establish
a national disaster hazard mitigation program—
(1) to reduce the loss of life and property, human
suffering, economic disruption, and disaster assist-
ance 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 crit-
ical services and facilities after a natural disaster.
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 following:
‘‘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, includ-
ing damage to critical services and facilities under the ju-
risdiction 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 and
has demonstrated the ability to form effective public-private
natural disaster hazard mitigation partnerships, the Presi-
dent, 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 five local governments to receive as-
sistance under this section.
‘‘(B) DEADLINE FOR SUBMISSION.—The rec-
ommendations under subparagraph (A) shall be
submitted to the President not later than October
1, 2001, and each October 1st thereafter or such
later date in the year as the President may es-
tablish.
‘‘(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
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 gov-
ernment that has not been recommended by a
Governor under this subsection if the President
determines that extraordinary circumstances jus-
tify 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
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 finan-
cial assistance received by the State or local govern-
ment under this section for a fiscal year to fund ac-
tivities to disseminate information regarding cost-ef-
fective 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
‘‘(B) the amount that is equal to 1.0 percent
of the total funds appropriated to carry out this
section for the fiscal year;
‘‘(2) shall not exceed 15 percent of the total funds
described in paragraph (1)(B); and
‘‘(3) shall be subject to the criteria specified in
subsection (g).
‘‘(g) CRITERIA FOR ASSISTANCE AWARDS.—In deter-
mining whether to provide technical and financial assist-
ance to a State or local government under this section, the
President shall take into account—
‘‘(1) the extent and nature of the hazards to be
mitigated;
‘‘(2) the degree of commitment of the State or
local government to reduce damages from future nat-
ural disasters;
‘‘(3) the degree of commitment by the State or
local government to support ongoing non-Federal sup-
port for the hazard mitigation measures to be carried
out using the technical and financial assistance;
‘‘(4) the extent to which the hazard mitigation
measures to be carried out using the technical and fi-
nancial assistance contribute to the mitigation goals
and priorities established by the State;
‘‘(5) the extent to which the technical and finan-
cial assistance is consistent with other assistance pro-
vided under this Act;
‘‘(6) the extent to which prioritized, cost-effective
mitigation activities that produce meaningful and de-
finable outcomes are clearly identified;
‘‘(7) if the State or local government has sub-
mitted a mitigation plan under section 322, the ex-
tent to which the activities identified under para-
graph (6) are consistent with the mitigation plan;
‘‘(8) the opportunity to fund activities that
maximize net benefits to society;
‘‘(9) the extent to which assistance will fund
mitigation activities in small impoverished commu-
nities; and
‘‘(10) such other criteria as the President estab-
lishes in consultation with State and local govern-
ments.
‘‘(h) FEDERAL SHARE.—
‘‘(1) IN
GENERAL.—Financial assistance pro-
vided under this section may contribute up to 75 per-
cent of the total cost of mitigation activities approved
by the President.
‘‘(2) SMALL IMPOVERISHED COMMUNITIES.—Not-
withstanding paragraph (1), the President may con-
tribute up to 90 percent of the total cost of a mitiga-
tion activity carried out in a small impoverished
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 request
by the President, the Secretary of the Treasury shall
transfer from the Fund to the President such amounts
as the President determines are necessary to provide
technical and financial assistance under this section.
‘‘(4) INVESTMENT OF AMOUNTS.—
‘‘(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 withdrawals.
Investments may be made only in interest-bear-
ing 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 cred-
ited 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 Treas-
ury to the Fund on the basis of estimates
made by the Secretary of the Treasury.
‘‘(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 AS-
SISTANCE.—The President shall not provide financial as-
sistance 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 advi-
sory 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 haz-
ard overlap.
‘‘(2) DEVELOPMENT OF MAPS.—In consultation
with States, local governments, and appropriate Fed-
eral agencies, the President shall develop multihazard
advisory maps for areas, in not fewer than five
States, that are subject to commonly recurring nat-
ural hazards (including flooding, hurricanes and se-
vere winds, and seismic events).
‘‘(3) USE
OF
TECHNOLOGY.—In developing
multihazard advisory maps under this subsection, the
President shall use, to the maximum extent prac-
ticable, the most cost-effective and efficient technology
available.
‘‘(4) USE OF MAPS.—
‘‘(A) ADVISORY NATURE.—The multihazard
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 de-
scribed in paragraph (2);
‘‘(ii) supporting the activities described
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 the enact-
ment of this section, the President, in consultation with
State and local governments, shall submit to Congress a re-
port evaluating efforts to implement this section and recom-
mending a process for transferring greater authority and
responsibility for administering the assistance program es-
tablished 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 Robert
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 mitigation
programs administered by the Federal Government.
‘‘(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 following:
‘‘SEC. 322. MITIGATION PLANNING.
‘‘(a) REQUIREMENT OF MITIGATION PLAN.—As a con-
dition of receipt of an increased Federal share for hazard
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.
‘‘(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 development
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 avail-
able.
‘‘(d) FUNDING.—
‘‘(1) IN GENERAL.—Federal contributions under
section 404 may be used to fund the development and
updating of mitigation plans under this section.
‘‘(2) MAXIMUM FEDERAL CONTRIBUTION.—With
respect to any mitigation plan, a State, local, or trib-
al government may use an amount of Federal con-
tributions under section 404 not to exceed 7 percent
of the amount of such contributions available to the
government as of a date determined by the govern-
ment.
‘‘(e) INCREASED FEDERAL SHARE FOR HAZARD MITI-
GATION MEASURES.—
‘‘(1) IN GENERAL.—If, at the time of the declara-
tion of a major disaster, a State has in effect an ap-
proved mitigation plan under this section, the Presi-
dent 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
carried out after the mitigation action is com-
plete.
‘‘SEC. 323. MINIMUM STANDARDS FOR PUBLIC AND PRIVATE
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 consultation
with appropriate State and local government officials.
‘‘(b) EVIDENCE OF COMPLIANCE.—A recipient of a dis-
aster loan or grant under this Act shall provide such evi-
dence 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. Staf-
ford 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 Minnesota and
for which assistance is being provided as of the date of the
enactment of this Act, except that additional assistance pro-
vided 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 Minnesota from straight line
winds.
(c) CONFORMING AMENDMENTS.—
(1) Section 404(a) of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C.
5170c(a)) is amended—
(A) in the second sentence, by striking ‘‘sec-
tion 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 amend-
ed in subsections (a)(1), (b), and (c) by striking ‘‘section
803 of the Public Works and Economic Development Act
of 1965’’ each place it appears and inserting ‘‘section
209(c)(2) of the Public Works and Economic Development
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 sec-
tion, the term ‘management cost’ includes any indirect cost,
any administrative expense, and any other expense not di-
rectly chargeable to a specific project under a major dis-
aster, emergency, or disaster preparedness or mitigation ac-
tivity or measure.
‘‘(b) 
ESTABLISHMENT
OF
MANAGEMENT
COST
RATES.—Notwithstanding any other provision of law (in-
cluding any administrative rule or guidance), the President
shall by regulation establish management cost rates, for
grantees and subgrantees, that shall be used to determine
contributions under this Act for management costs.
‘‘(c) REVIEW.—The President shall review the manage-
ment cost rates established under subsection (b) not later
than 3 years after the date of establishment of the rates and
periodically thereafter.’’.
(b) APPLICABILITY.—
(1) IN GENERAL.—Subject to paragraph (2), sub-
sections (a) and (b) of section 324 of the Robert T.
Stafford Disaster Relief and Emergency Assistance
Act (as added by subsection (a)) shall apply to major
disasters declared under that Act on or after the date
of the 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. Stafford Dis-
aster 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 the 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:
‘‘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 before
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 interim
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 recommendations of grantees
and subgrantees with respect to the major disaster or
emergency concerning the potential 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 agree-
ment 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 amend-
ed 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 established
by this section with respect to hazard mitigation as-
sistance in the State may submit to the President an
application for the delegation of the authority to ad-
minister 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 section;
‘‘(B) there being in effect an approved miti-
gation plan under section 322; and
‘‘(C) a demonstrated commitment to mitiga-
tion 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 ap-
proving 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.
‘‘(5) AUDITS.—The President shall provide for
periodic audits of the hazard mitigation grant pro-
grams administered by States under this subsection.’’.
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 in-
serting 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 facility
damaged or destroyed by a major disaster for the
repair, restoration, reconstruction, or replace-
ment of the facility and for associated expenses
incurred by the person.
‘‘(2) ASSOCIATED EXPENSES.—For the purposes
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
‘‘(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 SERVICES.—
In this paragraph, the term ‘critical services’ in-
cludes power, water (including water provided
by an irrigation organization or facility), sewer,
wastewater treatment, communications, and
emergency medical care.
‘‘(4) NOTIFICATION TO CONGRESS.—Before mak-
ing 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;
‘‘(B) the Committee on Transportation and
Infrastructure of the House of Representatives;
‘‘(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 in-
serting the following:
‘‘(b) FEDERAL SHARE.—
‘‘(1) MINIMUM FEDERAL SHARE.—Except as pro-
vided in paragraph (2), the Federal share of assist-
ance under this section shall be not less than 75 per-
cent of the eligible cost of repair, restoration, recon-
struction, or replacement carried out under this sec-
tion.
‘‘(2) REDUCED FEDERAL SHARE.—The President
shall promulgate regulations to reduce the Federal
share of assistance under this section to not less than
25 percent in the case of the repair, restoration, re-
construction, or replacement of any eligible public fa-
cility or private nonprofit facility following an event
associated with a major disaster—
‘‘(A) that has been damaged, on more than
one occasion within the preceding 10-year pe-
riod, by the same type of event; and
‘‘(B) the owner of which has failed to imple-
ment 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 As-
sistance Act (42 U.S.C. 5172) is amended by striking sub-
section (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 gov-
ernment may elect to receive, in lieu of a con-
tribution under subsection (a)(1)(A), a contribu-
tion in an amount equal to 75 percent of the
Federal share of the Federal estimate of the cost
of repairing, restoring, reconstructing, or replac-
ing the facility and of management expenses.
‘‘(B) AREAS WITH UNSTABLE SOIL.—In any
case in which a State or local government deter-
mines that the public welfare would not best be
served by repairing, restoring, reconstructing, or
replacing any public facility owned or controlled
by the State or local government because soil in-
stability in the disaster area makes repair, res-
toration, reconstruction, or replacement infeasi-
ble, the State or local government may elect to
receive, in lieu of a contribution under sub-
section (a)(1)(A), a contribution in an amount
equal to 90 percent of the Federal share of the
Federal estimate of the cost of repairing, restor-
ing, reconstructing, or replacing the facility and
of management expenses.
‘‘(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
‘‘(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 available
to a State or local government under this para-
graph 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 Regulations
(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 nonprofit
facility determines that the public welfare would
‘‘(i) any private nonprofit facility lo-
cated in a regulatory floodway (as defined
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 eligible
cost of repairing, restoring, reconstructing, or re-
placing a public facility or private nonprofit
facility—
‘‘(i) on the basis of the design of the fa-
cility as the facility existed immediately be-
fore the major disaster; and
‘‘(ii) in conformity with codes, speci-
fications, and standards (including flood-
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 procedures
specified in this paragraph and paragraph
(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 CEILING
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 es-
tablished under paragraph (3) of the cost esti-
mated under paragraph (1), the President may
determine that the eligible cost includes a por-
tion of the actual cost of the repair, restoration,
reconstruction, or replacement that exceeds the
cost estimated under paragraph (1).
‘‘(B) ACTUAL COST LESS THAN ESTIMATED
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 govern-
ment 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 suf-
fering from a major disaster.
‘‘(ii) LESS THAN 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 the floor percentage
established under paragraph (3) of the cost
estimated under paragraph (1), the State or
local government or person receiving assist-
ance 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 the enactment of this
paragraph, the President, acting through the Di-
rector of the Federal Emergency Management
Agency, shall establish an expert panel, which
shall include representatives from the construc-
tion industry and State and local government.
‘‘(B) DUTIES.—The expert panel shall de-
velop recommendations concerning—
‘‘(i) procedures for estimating the cost
of repairing, restoring, reconstructing, or
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 periodi-
cally thereafter, the President shall review the
cost estimation procedures and the ceiling and
floor percentages established under this para-
graph.
‘‘(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 pe-
riod thereafter, the expert panel shall submit 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 the enact-
ment of this Act and applies to funds appropriated
after the date of the enactment of this Act, except that
paragraph (1) of section 406(e) of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act
(as amended by paragraph (1)) takes effect on the
date on which the cost estimation procedures estab-
lished 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).
SEC. 206. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
(a) IN GENERAL.—Section 408 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5174) is amended to read as follows:
‘‘SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
‘‘(a) IN GENERAL.—
‘‘(1) PROVISION OF ASSISTANCE.—In accordance
with this section, the President, in consultation with
the Governor of a State, may provide financial assist-
ance, and, if necessary, direct services, to individuals
and households in the State who, as a direct result of
a major disaster, have necessary expenses and serious
needs in cases in which the individuals and house-
holds are unable to meet such expenses or needs
through other means.
‘‘(2) RELATIONSHIP TO OTHER ASSISTANCE.—
Under paragraph (1), an individual or household
shall not be denied assistance under paragraph (1),
(3), or (4) of subsection (c) solely on the basis that
the individual or household has not applied for or re-
ceived any loan or other financial assistance from the
Small Business Administration or any other Federal
agency.
‘‘(b) HOUSING ASSISTANCE.—
‘‘(1) ELIGIBILITY.—The President may provide
financial or other assistance under this section to in-
dividuals and households to respond to the disaster-
related housing needs of individuals and households
who are displaced from their predisaster primary
residences or whose predisaster primary residences
are rendered uninhabitable as a result of damage
caused by a major disaster.
‘‘(2) DETERMINATION
OF
APPROPRIATE
TYPES
OF ASSISTANCE.—
‘‘(A) IN GENERAL.—The President shall de-
termine appropriate types of housing assistance
to be provided under this section to individuals
and households described in subsection (a)(1)
based on considerations of cost effectiveness, con-
venience to the individuals and households, and
such other factors as the President may consider
appropriate.
‘‘(B) MULTIPLE TYPES OF ASSISTANCE.—
One or more types of housing assistance may be
made available under this section, based on the
suitability and availability of the types of assist-
ance, to meet the needs of individuals and house-
holds in the particular disaster situation.
‘‘(c) TYPES OF HOUSING ASSISTANCE.—
‘‘(1) TEMPORARY HOUSING.—
‘‘(A) FINANCIAL ASSISTANCE.—
‘‘(i) IN GENERAL.—The President may
provide financial assistance to individuals
or households to rent alternate housing ac-
commodations, existing rental units, manu-
factured housing, recreational vehicles, or
other readily fabricated dwellings.
‘‘(ii) AMOUNT.—The amount of assist-
ance under clause (i) shall be based on the
fair market rent for the accommodation
provided plus the cost of any transpor-
tation, utility hookups, or unit installation
not provided directly by the President.
‘‘(B) DIRECT ASSISTANCE.—
‘‘(i) IN GENERAL.—The President may
provide temporary housing units, acquired
by purchase or lease, directly to individuals
or households who, because of a lack of
available housing resources, would be unable
to make use of the assistance provided under
subparagraph (A).
‘‘(ii) PERIOD
OF
ASSISTANCE.—The
President may not provide direct assistance
under clause (i) with respect to a major dis-
aster after the end of the 18-month period
beginning on the date of the declaration of
the major disaster by the President, except
that the President may extend that period if
the President determines that due to ex-
traordinary circumstances an extension
would be in the public interest.
‘‘(iii) 
COLLECTION
OF
RENTAL
CHARGES.—After the end of the 18-month
period referred to in clause (ii), the Presi-
dent may charge fair market rent for each
temporary housing unit provided.
‘‘(2) REPAIRS.—
‘‘(A) IN GENERAL.—The President may pro-
vide financial assistance for—
‘‘(i) the repair of owner-occupied pri-
vate residences, utilities, and residential in-
frastructure (such as a private access route)
damaged by a major disaster to a safe and
sanitary living or functioning condition;
and
‘‘(ii) eligible hazard mitigation meas-
ures that reduce the likelihood of future
damage to such residences, utilities, or in-
frastructure.
‘‘(B) RELATIONSHIP
TO
OTHER
ASSIST-
ANCE.—A recipient of assistance provided under
this paragraph shall not be required to show that
the assistance can be met through other means,
except insurance proceeds.
‘‘(C) MAXIMUM AMOUNT OF ASSISTANCE.—
The amount of assistance provided to a house-
hold under this paragraph shall not exceed
$5,000, as adjusted annually to reflect changes
in the Consumer Price Index for All Urban Con-
sumers published by the Department of Labor.
‘‘(3) REPLACEMENT.—
‘‘(A) IN GENERAL.—The President may pro-
vide financial assistance for the replacement of
owner-occupied private residences damaged by a
major disaster.
‘‘(B) MAXIMUM AMOUNT OF ASSISTANCE.—
The amount of assistance provided to a house-
hold under this paragraph shall not exceed
$10,000, as adjusted annually to reflect changes
in the Consumer Price Index for All Urban Con-
sumers published by the Department of Labor.
‘‘(C) APPLICABILITY OF FLOOD INSURANCE
REQUIREMENT.—With respect to assistance pro-
vided under this paragraph, the President may
not waive any provision of Federal law requir-
ing the purchase of flood insurance as a condi-
tion of the receipt of Federal disaster assistance.
‘‘(4) PERMANENT HOUSING CONSTRUCTION.—The
President may provide financial assistance or direct
assistance to individuals or households to construct
permanent housing in insular areas outside the conti-
nental United States and in other remote locations in
cases in which—
‘‘(A) no alternative housing resources are
available; and
‘‘(B) the types of temporary housing assist-
ance described in paragraph (1) are unavailable,
infeasible, or not cost-effective.
‘‘(d) TERMS AND CONDITIONS RELATING TO HOUSING
ASSISTANCE.—
‘‘(1) SITES.—
‘‘(A) IN GENERAL.—Any readily fabricated
dwelling provided under this section shall, when-
ever practicable, be located on a site that—
‘‘(i) is complete with utilities; and
‘‘(ii) is provided by the State or local
government, by the owner of the site, or by
the occupant who was displaced by the
major disaster.
‘‘(B) SITES
PROVIDED
BY
THE
PRESI-
DENT.—A readily fabricated dwelling may be lo-
cated on a site provided by the President if the
President determines that such a site would be
more economical or accessible.
‘‘(2) DISPOSAL OF UNITS.—
‘‘(A) SALE TO OCCUPANTS.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, a temporary
housing unit purchased under this section
by the President for the purpose of housing
disaster victims may be sold directly to the
individual or household who is occupying
the unit if the individual or household lacks
permanent housing.
‘‘(ii) SALE PRICE.—A sale of a tem-
porary housing unit under clause (i) shall
be at a price that is fair and equitable.
‘‘(iii) DEPOSIT
OF
PROCEEDS.—Not-
withstanding any other provision of law,
the proceeds of a sale under clause (i) shall
be deposited in the appropriate Disaster Re-
lief Fund account.
‘‘(iv) HAZARD
AND
FLOOD
INSUR-
ANCE.—A sale of a temporary housing unit
under clause (i) shall be made on the condi-
tion that the individual or household pur-
chasing the housing unit agrees to obtain
and maintain hazard and flood insurance
on the housing unit.
‘‘(v) USE
OF
GSA
SERVICES.—The
President may use the services of the Gen-
eral Services Administration to accomplish
a sale under clause (i).
‘‘(B) OTHER
METHODS
OF
DISPOSAL.—If
not disposed of under subparagraph (A), a tem-
porary housing unit purchased under this sec-
tion by the President for the purpose of housing
disaster victims—
‘‘(i) may be sold to any person; or
‘‘(ii) may be sold, transferred, donated,
or otherwise made available directly to a
State or other governmental entity or to a
voluntary organization for the sole purpose
of providing temporary housing to disaster
victims in major disasters and emergencies
if, as a condition of the sale, transfer, or do-
nation, the State, other governmental agen-
cy, or voluntary organization agrees—
‘‘(I) to comply with the non-
discrimination provisions of section
308; and
‘‘(II) to obtain and maintain haz-
ard and flood insurance on the housing
unit.
‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER
NEEDS.—
‘‘(1) MEDICAL, DENTAL, AND
FUNERAL
EX-
PENSES.—The President, in consultation with the
Governor of a State, may provide financial assistance
under this section to an individual or household in
the State who is adversely affected by a major dis-
aster to meet disaster-related medical, dental, and fu-
neral expenses.
‘‘(2) PERSONAL
PROPERTY, TRANSPORTATION,
AND OTHER EXPENSES.—The President, in consulta-
tion with the Governor of a State, may provide finan-
cial assistance under this section to an individual or
household described in paragraph (1) to address per-
sonal property, transportation, and other necessary
expenses or serious needs resulting from the major
disaster.
‘‘(f) STATE ROLE.—
‘‘(1) FINANCIAL ASSISTANCE TO ADDRESS OTHER
NEEDS.—
‘‘(A) GRANT
TO
STATE.—Subject to sub-
section (g), a Governor may request a grant from
the President to provide financial assistance to
individuals and households in the State under
subsection (e).
‘‘(B) ADMINISTRATIVE
COSTS.—A State
that receives a grant under subparagraph (A)
may expend not more than 5 percent of the
amount of the grant for the administrative costs
of providing financial assistance to individuals
and households in the State under subsection (e).
‘‘(2) ACCESS TO RECORDS.—In providing assist-
ance to individuals and households under this section,
the President shall provide for the substantial and on-
going involvement of the States in which the individ-
uals and households are located, including by pro-
viding to the States access to the electronic records of
individuals and households receiving assistance under
this section in order for the States to make available
any additional State and local assistance to the indi-
viduals and households.
‘‘(g) COST SHARING.—
‘‘(1) FEDERAL SHARE.—Except as provided in
paragraph (2), the Federal share of the costs eligible
to be paid using assistance provided under this sec-
tion shall be 100 percent.
‘‘(2) FINANCIAL ASSISTANCE TO ADDRESS OTHER
NEEDS.—In the case of financial assistance provided
under subsection (e)—
‘‘(A) the Federal share shall be 75 percent;
and
‘‘(B) the non-Federal share shall be paid
from funds made available by the State.
‘‘(h) MAXIMUM AMOUNT OF ASSISTANCE.—
‘‘(1) IN GENERAL.—No individual or household
shall receive financial assistance greater than $25,000
under this section with respect to a single major dis-
aster.
‘‘(2) ADJUSTMENT OF LIMIT.—The limit estab-
lished under paragraph (1) shall be adjusted annually
to reflect changes in the Consumer Price Index for All
Urban Consumers published by the Department of
Labor.
‘‘(i) RULES AND REGULATIONS.—The President shall
prescribe rules and regulations to carry out this section, in-
cluding criteria, standards, and procedures for determining
eligibility for assistance.’’.
(b) CONFORMING AMENDMENT.—Section 502(a)(6) of
the Robert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5192(a)(6)) is amended by striking
‘‘temporary housing’’.
(c) ELIMINATION OF INDIVIDUAL AND FAMILY GRANT
PROGRAMS.—Section 411 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5178) is
repealed.
(d) EFFECTIVE DATE.—The amendments made by this
section take effect 18 months after the date of the enactment
of this Act.
SEC. 207. COMMUNITY DISASTER LOANS.
Section 417 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5184) is
amended—
(1) by striking ‘‘(a) The President’’ and insert-
ing the following:
‘‘(a) IN GENERAL.—The President’’;
(2) by striking ‘‘The amount’’ and inserting the
following:
‘‘(b) AMOUNT.—The amount’’;
(3) by striking ‘‘Repayment’’ and inserting the
following:
‘‘(c) REPAYMENT.—
‘‘(1) CANCELLATION.—Repayment’’;
(4) by striking ‘‘(b) Any loans’’ and inserting
the following:
‘‘(d) EFFECT ON OTHER ASSISTANCE.—Any loans’’;
(5) in subsection (b) (as designated by para-
graph (2))—
(A) by striking ‘‘and shall’’ and inserting
‘‘shall’’; and
(B) by inserting before the period at the end
the 
following: 
‘‘, 
and 
shall 
not 
exceed
$5,000,000’’; and
(6) in subsection (c) (as designated by para-
graph (3)), by adding at the end the following:
‘‘(2) CONDITION ON CONTINUING ELIGIBILITY.—
A local government shall not be eligible for further as-
sistance under this section during any period in
which the local government is in arrears with respect
to a required repayment of a loan under this sec-
tion.’’.
SEC. 208. REPORT ON STATE MANAGEMENT OF SMALL DIS-
ASTERS INITIATIVE.
Not later than 3 years after the date of the enactment
of this Act, the President shall submit to Congress a report
describing the results of the State Management of Small
Disasters Initiative, including—
(1) identification of any administrative or fi-
nancial benefits of the initiative; and
(2) recommendations concerning the conditions,
if any, under which States should be allowed the op-
tion to administer parts of the assistance program
under section 406 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5172).
SEC. 209. STUDY REGARDING COST REDUCTION.
Not later than 3 years after the date of the enactment
of this Act, the Director of the Congressional Budget Office
shall complete a study estimating the reduction in Federal
disaster assistance that has resulted and is likely to result
from the enactment of this Act.
TITLE III—MISCELLANEOUS
SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.
The first section of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5121 note)
is amended to read as follows:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act’.’’.
SEC. 302. DEFINITIONS.
Section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122) is
amended—
(1) in each of paragraphs (3) and (4), by strik-
ing ‘‘the Northern’’ and all that follows through ‘‘Pa-
cific Islands’’ and inserting ‘‘and the Commonwealth
of the Northern Mariana Islands’’;
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) LOCAL GOVERNMENT.—The term ‘local gov-
ernment’ means—
‘‘(A) a county, municipality, city, town,
township, local public authority, school district,
special district, intrastate district, council of
governments (regardless of whether the council of
governments is incorporated as a nonprofit cor-
poration under State law), regional or interstate
government entity, or agency or instrumentality
of a local government;
‘‘(B) an Indian tribe or authorized tribal
organization, or Alaska Native village or organi-
zation; and
‘‘(C) a rural community, unincorporated
town or village, or other public entity, for which
an application for assistance is made by a State
or political subdivision of a State.’’; and
(3) in paragraph (9), by inserting ‘‘irrigation,’’
after ‘‘utility,’’.
SEC. 303. FIRE MANAGEMENT ASSISTANCE.
(a) IN GENERAL.—Section 420 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5187) is amended to read as follows:
‘‘SEC. 420. FIRE MANAGEMENT ASSISTANCE.
‘‘(a) IN GENERAL.—The President is authorized to
provide assistance, including grants, equipment, supplies,
and personnel, to any State or local government for the
mitigation, management, and control of any fire on public
or private forest land or grassland that threatens such de-
struction as would constitute a major disaster.
‘‘(b) COORDINATION WITH STATE AND TRIBAL DE-
PARTMENTS OF FORESTRY.—In providing assistance under
this section, the President shall coordinate with State and
tribal departments of forestry.
‘‘(c) ESSENTIAL ASSISTANCE.—In providing assist-
ance under this section, the President may use the authority
provided under section 403.
‘‘(d) RULES AND REGULATIONS.—The President shall
prescribe such rules and regulations as are necessary to
carry out this section.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect 1 year after the date of the enactment
of this Act.
SEC. 304. PRESIDENT’S COUNCIL ON DOMESTIC TERRORISM
PREPAREDNESS.
Title VI of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5195 et seq.) is
amended by adding at the end the following:
‘‘Subtitle C—President’s Council on
Domestic Terrorism Preparedness
‘‘SEC. 651. ESTABLISHMENT OF COUNCIL.
‘‘(a) IN GENERAL.—There is established a council to
be known as the President’s Council on Domestic Terrorism
Preparedness (in this subtitle referred to as the ‘Council’).
‘‘(b) MEMBERSHIP.—The Council shall be composed of
the following members:
‘‘(1) The President.
‘‘(2) The Director of the Federal Emergency
Management Agency.
‘‘(3) The Attorney General.
‘‘(4) The Secretary of Defense.
‘‘(5) The Director of the Office of Management
and Budget.
‘‘(6) The Assistant to the President for National
Security Affairs.
‘‘(7) Any additional members appointed by the
President.
‘‘(c) CHAIRMAN.—
‘‘(1) IN GENERAL.—The President shall serve as
the chairman of the Council.
‘‘(2) EXECUTIVE
CHAIRMAN.—The President
may appoint an Executive Chairman of the Council
(in this subtitle referred to as the ‘Executive Chair-
man’). The Executive Chairman shall represent the
President as chairman of the Council, including in
communications with Congress and State Governors.
‘‘(3) SENATE CONFIRMATION.—An individual se-
lected to be the Executive Chairman under paragraph
(2) shall be appointed by and with the advice and
consent of the Senate, except that Senate confirmation
shall not be required if, on the date of appointment,
the individual holds a position for which Senate con-
firmation was required.
‘‘(d) FIRST MEETING.—The first meeting of the Coun-
cil shall be held not later than 90 days after the date of
the enactment of this Act.
‘‘SEC. 652. DUTIES OF COUNCIL.
‘‘The Council shall carry out the following duties:
‘‘(1) Establish the policies, objectives, and prior-
ities of the Federal Government for enhancing the ca-
pabilities of State and local emergency preparedness
and response personnel in early detection and warn-
ing of and response to all domestic terrorist attacks,
including attacks involving weapons of mass destruc-
tion.
‘‘(2) Publish a Domestic Terrorism Preparedness
Plan and an annual strategy for carrying out the
plan in accordance with section 653, including the
end state of preparedness for emergency responders es-
tablished under section 653(b)(1)(D).
‘‘(3) To the extent practicable, rely on existing
resources (including planning documents, equipment
lists, and program inventories) in the execution of its
duties.
‘‘(4) Consult with and utilize existing inter-
agency boards and committees, existing governmental
entities, and non-governmental organizations in the
execution of its duties.
‘‘(5) Ensure that a biennial review of the ter-
rorist attack preparedness programs of State and
local governmental entities is conducted and provide
recommendations to the entities based on the reviews.
‘‘(6) Provide for the creation of a State and local
advisory group for the Council, to be composed of in-
dividuals involved in State and local emergency pre-
paredness and response to terrorist attacks.
‘‘(7) Provide for the establishment by the Coun-
cil’s State and local advisory group of voluntary
guidelines for the terrorist attack preparedness pro-
grams of State and local governmental entities in ac-
cordance with section 655.
‘‘(8) Designate a Federal entity to consult with,
and serve as a contact for, State and local govern-
mental entities implementing terrorist attack pre-
paredness programs.
‘‘(9) Coordinate and oversee the implementation
by Federal departments and agencies of the policies,
objectives, and priorities established under paragraph
(1) and the fulfillment of the responsibilities of such
departments and agencies under the Domestic Ter-
rorism Preparedness Plan.
‘‘(10) Make recommendations to the heads of ap-
propriate 
Federal 
departments 
and 
agencies
regarding—
‘‘(A) changes in the organization, manage-
ment, and resource allocations of the depart-
ments and agencies; and
‘‘(B) the allocation of personnel to and
within the departments and agencies,
to implement the Domestic Terrorism Preparedness
Plan.
‘‘(11) Assess all Federal terrorism preparedness
programs and ensure that each program complies
with the Domestic Terrorism Preparedness Plan.
‘‘(12) Identify duplication, fragmentation, and
overlap within Federal terrorism preparedness pro-
grams and eliminate such duplication, fragmentation
and overlap.
‘‘(13) Evaluate Federal emergency response as-
sets and make recommendations regarding the organi-
zation, need, and geographic location of such assets.
‘‘(14) Establish general policies regarding finan-
cial assistance to States based on potential risk and
threat, response capabilities, and ability to achieve
the end state of preparedness for emergency respond-
ers established under section 653(b)(1)(D).
‘‘(15) Notify a Federal department or agency in
writing if the Council finds that its policies are not
in compliance with its responsibilities under the Do-
mestic Terrorism Preparedness Plan.
‘‘SEC. 653. DOMESTIC TERRORISM PREPAREDNESS PLAN
AND ANNUAL STRATEGY.
‘‘(a) DEVELOPMENT OF PLAN.—Not later than 180
days after the date of the first meeting of the Council, the
Council shall develop a Domestic Terrorism Preparedness
Plan and transmit a copy of the plan to Congress.
‘‘(b) CONTENTS.—
‘‘(1) IN
GENERAL.—The Domestic Terrorism
Preparedness Plan shall include the following:
‘‘(A) A statement of the policies, objectives,
and priorities established by the Council under
section 652(1).
‘‘(B) A plan for implementing such policies,
objectives, and priorities that is based on a
threat, risk, and capability assessment and in-
cludes measurable objectives to be achieved in
each of the following 5 years for enhancing do-
mestic preparedness against a terrorist attack.
‘‘(C) A description of the specific role of
each Federal department and agency, and the
roles of State and local governmental entities,
under the plan developed under subparagraph
(B).
‘‘(D) A definition of an end state of pre-
paredness for emergency responders that sets
forth measurable, minimum standards of accept-
ability for preparedness.
‘‘(2) 
EVALUATION
OF
FEDERAL
RESPONSE
TEAMS.—In preparing the description under para-
graph (1)(C), the Council shall evaluate each Federal
response team and the assistance that the team offers
to State and local emergency personnel when respond-
ing to a terrorist attack. The evaluation shall include
an assessment of how the Federal response team will
assist State and local emergency personnel after the
personnel has achieved the end state of preparedness
for emergency responders established under paragraph
(1)(D).
‘‘(c) ANNUAL STRATEGY.—
‘‘(1) IN
GENERAL.—The Council shall develop
and transmit to Congress, on the date of transmittal
of the Domestic Terrorism Preparedness Plan and, in
each of the succeeding 4 fiscal years, on the date that
the President submits an annual budget to Congress
in accordance with section 1105(a) of title 31, United
States Code, an annual strategy for carrying out the
Domestic Terrorism Preparedness Plan in the fiscal
year following the fiscal year in which the strategy is
submitted.
‘‘(2) CONTENTS.—The annual strategy for a fis-
cal year shall include the following:
‘‘(A) An inventory of Federal training and
exercise programs, response teams, grant pro-
grams, and other programs and activities related
to domestic preparedness against a terrorist at-
tack conducted in the preceding fiscal year and
a determination as to whether any of such pro-
grams or activities may be duplicative. The in-
ventory shall consist of a complete description of
each such program and activity, including the
funding level and purpose of and goal to be
achieved by the program or activity.
‘‘(B) If the Council determines under sub-
paragraph (A) that certain programs and activi-
ties are duplicative, a detailed plan for consoli-
dating, eliminating, or modifying the programs
and activities.
‘‘(C) An inventory of Federal training and
exercise programs, grant programs, response
teams, and other programs and activities to be
conducted in such fiscal year under the Domestic
Terrorism Preparedness Plan and measurable
objectives to be achieved in such fiscal year for
enhancing domestic preparedness against a ter-
rorist attack. The inventory shall provide for im-
plementation of any plan developed under sub-
paragraph (B), relating to duplicative programs
and activities.
‘‘(D) A complete assessment of how resource
allocation recommendations developed under sec-
tion 654(a) are intended to implement the an-
nual strategy.
‘‘(d) CONSULTATION.—
‘‘(1) IN GENERAL.—In developing the Domestic
Terrorism Preparedness Plan and each annual strat-
egy for carrying out the plan, the Council shall con-
sult with—
‘‘(A) the head of each Federal department
and agency that will have responsibilities under
the Domestic Terrorism Preparedness Plan or
annual strategy;
‘‘(B) Congress;
‘‘(C) State and local officials;
‘‘(D) congressionally authorized panels; and
‘‘(E) emergency preparedness organizations
with memberships that include State and local
emergency responders.
‘‘(2) REPORTS.—As part of the Domestic Ter-
rorism Preparedness Plan and each annual strategy
for carrying out the plan, the Council shall include
a written statement indicating the persons consulted
under this subsection and the recommendations made
by such persons.
‘‘(e) TRANSMISSION OF CLASSIFIED INFORMATION.—
Any part of the Domestic Terrorism Preparedness Plan or
an annual strategy for carrying out the plan that involves
information properly classified under criteria established
by an Executive order shall be presented to Congress sepa-
rately.
‘‘(f) RISK OF TERRORIST ATTACKS AGAINST TRANS-
PORTATION FACILITIES.—
‘‘(1) IN GENERAL.—In developing the plan and
risk assessment under subsection (b), the Council shall
designate an entity to assess the risk of terrorist at-
tacks against transportation facilities, personnel, and
passengers.
‘‘(2) CONTENTS.—In developing the plan and
risk assessment under subsection (b), the Council shall
ensure that the following three tasks are accomplished:
‘‘(A) An examination of the extent to which
transportation facilities, personnel, and pas-
sengers have been the target of terrorist attacks
and the extent to which such facilities, personnel,
and passengers are vulnerable to such attacks.
‘‘(B) An evaluation of Federal laws that
can be used to combat terrorist attacks against
transportation facilities, personnel, and pas-
sengers, and the extent to which such laws are