I 
115TH CONGRESS 
1ST SESSION H. R. 4056 
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 
OCTOBER 12, 2017 
Mr. KIND introduced the following bill; which was referred to the Committee 
on Transportation and Infrastructure, and in addition to the Committees 
on Financial Services, and Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee 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, 
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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Disaster Insurance Risk Equality 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—FEDERAL PROGRAM FOR REIMBURSABLE DISASTER 
RELIEF AND EMERGENCY ASSISTANCE 
Sec. 201. Findings and declarations. 
Sec. 202. Waiver of administrative conditions. 
Sec. 203. Emergency support teams. 
Sec. 204. Reimbursement. 
Sec. 205. Performance of services. 
Sec. 206. Reimbursement agreements and conditions. 
Sec. 207. Treatment of assistance. 
Sec. 208. Liability. 
Sec. 209. Advance of State expenditures. 
Sec. 210. Procedure for declaration of major disaster. 
Sec. 211. General Federal disaster assistance. 
Sec. 212. Essential disaster assistance. 
Sec. 213. Hazard mitigation. 
Sec. 214. Repair, restoration, and replacement of damaged facilities. 
Sec. 215. Debris removal. 
Sec. 216. Temporary housing assistance. 
Sec. 217. Unemployment assistance. 
Sec. 218. Crisis counseling assistance and training. 
Sec. 219. Community disaster loans. 
Sec. 220. Emergency communications. 
Sec. 221. Emergency public transportation. 
Sec. 222. Fire suppression. 
Sec. 223. Timber sale contracts. 
Sec. 224. Simplified procedure. 
Sec. 225. Appeals of assistance decisions. 
Sec. 226. Procedure for declaration. 
Sec. 227. Federal emergency assistance. 
Sec. 228. Amount of assistance. 
Sec. 229. Applicability. 
TITLE III—FEDERAL-AID HIGHWAYS 
Sec. 301. National standard for State participation in disaster insurance pro-
gram. 
Sec. 302. Emergency relief program for repair of highways. 
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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 and the annual disaster 
relief obligations of the Federal Emergency Manage-
ment Agency have both been steadily increasing over 
time; 
(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 
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; 
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(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; and 
(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 dis-
aster relief. 
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: 
‘‘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 
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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. 
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‘‘(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 Administrator of the Federal Emergency Man-
agement Agency, the Disaster Insurance Advisory Com-
mittee under section 826, and other relevant Federal 
agencies and shall be effective only if approved by the Ad-
ministrator and the Advisory 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, 
2019. 
‘‘(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: 
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‘‘(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. 
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‘‘(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 con-
ducting hazard mitigation measures that the Cor-
poration determines to be cost-effective and that will 
substantially reduce the risk of future damage, hard-
ship, loss, or suffering in any area affected by the 
disaster. 
‘‘(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) 
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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 pro-
viding, 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. 
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‘‘(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 
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. 
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‘‘(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. 
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‘‘(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: 
‘‘(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 
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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— 
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‘‘(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. 
‘‘(e) FEDERAL CONTRIBUTION.— 
‘‘(1) CREDIT
TOWARD
PREMIUMS.—For each 
fiscal year, the amount of the premium charges owed 
for such fiscal year by each State that is partici-
pating in the Corporation and the insurance pro-
gram under this subtitle shall be reduced by the 
amount determined for such State under paragraph 
(2). 
‘‘(2) AMOUNT.—For a fiscal year, the amount 
determined under this paragraph for each State that 
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is a participant shall be the amount that bears the 
same percentage to the full premium charges owed 
by such State for such fiscal year as the total 
amount appropriated pursuant to paragraph (3) for 
such fiscal year bears to the sum of all premium 
charges owed by all participating States for such fis-
cal year. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Cor-
poration for each fiscal year an amount equal to 10 
percent of the sum of all premium charges owed by 
all States participating in the Corporation and the 
insurance program under this subtitle for such fiscal 
year. 
‘‘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.— 
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‘‘(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 Ad-
ministrator pursuant to the National Flood Insur-
ance Act of 1968 is damaged or destroyed by flood-
ing in a disaster and such facility or residence is not 
covered on the date of such flooding by flood insur-
ance, the amount of a claim for coverage under this 
subtitle which would otherwise be paid under the in-
surance program under this subtitle for costs of re-
pair, restoration, reconstruction, and replacement of 
such facility 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. 
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‘‘(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 Dis-
aster Insurance Advisory Com-
mission 
‘‘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 
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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 
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‘‘(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 Ad-
ministrator pursuant to subsection (e)(2)) in an 
amount equal to 1 percent of the aggregate amount 
of Federal financial assistance provided, during fis-
cal years 2009 through 2018, to the State (or to or 
on behalf of persons or property located in the 
State) for disaster relief relating to a major disaster 
or emergency declared under this Act, as determined 
by the Administrator. For purposes of this para-
graph, the term ‘Federal financial assistance’ shall 
include any grant, payment, subsidy, or loan pro-
vided by any agency of the Federal Government, and 
the amount of assistance provided under a loan shall 
be considered to be an amount equal to the principal 
obligation under the loan. 
‘‘(2) PAYMENT
OF
PREMIUM
CHARGES.—The 
State has paid any premium charges assessed for 
such State pursuant to section 804, in accordance 
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with the requirements established by the Corpora-
tion for payment of such charges. 
For purposes of the organizational meeting under sub-
section (e)(1), any State that complies with paragraph (1) 
of this subsection shall be considered as a participant. 
‘‘(e) INITIAL ORGANIZATION.— 
‘‘(1) ORGANIZATIONAL MEETING.—The Admin-
istrator shall call an organizational meeting for the 
Corporation to be held not later than August 31, 
2019, at which the participants shall elect the initial 
members of the board of directors and shall take 
such other actions as may be necessary to establish 
the Corporation in accordance with this title. The 
Administrator shall notify each State of the meeting 
and the 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 Administrator 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 
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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 an 
Act of Congress; and 
‘‘(7) to exercise all other lawful powers nec-
essary or appropriate to carry out this title. 
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‘‘SEC. 822. STRUCTURE AND OPERATIONS. 
‘‘After consultation with the Administrator and other 
appropriate Federal agencies, the Corporation shall estab-
lish 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, 2019, 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 sections 804(e)(3) and 825(a); 
and 
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‘‘(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; 
‘‘(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). 
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‘‘(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 Admin-
istrator. 
‘‘(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 
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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, 2019, 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 Adminis-
trator to be necessary to reserve from such appro-
priation 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 September 30, 2019. 
‘‘(b) PROHIBITION OF FEDERAL ASSISTANCE.—Ex-
cept as provided in subsection (a), section 804(e), and sec-
tion 824, no Federal funds may be authorized, appro-
priated, or used to fund any activity of the Corporation. 
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‘‘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 Administrator. Of the 
members of the Commission, not less than 6 shall be 
individuals who have been nominated for such ap-
pointment by States that are participants in the 
Corporation, except that (to the extent possible) not 
more than one such member may be appointed to 
the Commission pursuant to the nomination of any 
single 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; 
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‘‘(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. 
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‘‘(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 Administrator, as-
sist the Corporation in establishing the terms and 
conditions of the insurance program under subtitle 
A, review such terms and conditions, and approve or 
disapprove 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, 2019, the Comptroller General of the United 
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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) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator 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-
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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—FEDERAL 
PROGRAM 
FOR 
REIMBURSABLE 
DIS-
ASTER RELIEF AND EMER-
GENCY ASSISTANCE 
SEC. 201. FINDINGS AND DECLARATIONS. 
(a) FINDINGS.—Section 101(a) of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 note) is amended by striking ‘‘The’’ and 
inserting ‘‘FINDINGS.—Recognizing the importance of re-
ducing the Federal deficit and allowing the individual 
States to regain responsibility for management of activi-
ties within their borders, the’’. 
(b) DECLARATIONS.—Section 101(b) of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 note) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘an orderly’’ and all that 
follows through ‘‘their’’ and inserting ‘‘a mecha-
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nism which will allow affected States to carry 
out their’’; and 
(B) by striking ‘‘such’’; 
(2) by redesignating paragraphs (1) through 
(6) as paragraphs (2) through (7), respectively; 
(3) 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;’’; 
(4) in paragraph (2) (as so redesignated) by 
striking ‘‘and broadening’’; 
(5) in paragraph (5) (as so redesignated) by 
striking ‘‘supplement or’’; and 
(6) in paragraph (7) (as so redesignated) by in-
serting ‘‘reimbursable’’ before ‘‘assistance’’. 
SEC. 202. WAIVER OF ADMINISTRATIVE CONDITIONS. 
Section 301 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5141) is 
amended by striking ‘‘Any’’ and inserting ‘‘Except as oth-
erwise provided in this title, any’’. 
SEC. 203. EMERGENCY SUPPORT TEAMS. 
Section 303(a) of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5144(a)) 
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is amended by striking ‘‘on either’’ and all that follows 
through ‘‘President,’’. 
SEC. 204. REIMBURSEMENT. 
Section 304 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5147) is 
amended by striking the first sentence and inserting the 
following: ‘‘Federal agencies shall be reimbursed for ex-
penditures made under this Act with respect to a major 
disaster or emergency by the State or States affected by 
the disaster or emergency.’’. 
SEC. 205. PERFORMANCE OF SERVICES. 
Section 306 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5149) is 
amended— 
(1) in subsection (b) by striking ‘‘In performing 
any services under this Act,’’ and inserting ‘‘Subject 
to subsection (c), in performing any services under 
this Act with respect to a major disaster or emer-
gency’’; and 
(2) by adding at the end the following: 
‘‘(c) REIMBURSEMENT
AGREEMENT.—A Federal 
agency may only incur costs with respect to compensation, 
employment, or obligations under subsection (b) in con-
nection with a disaster or emergency if the Federal Gov-
ernment has entered into an agreement with the State or 
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States affected by the major disaster or emergency for re-
imbursement of all such costs.’’. 
SEC. 206. REIMBURSEMENT AGREEMENTS AND CONDI-
TIONS. 
Section 311 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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 
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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 
any reimbursable assistance, loan, or advance authorized 
by this Act may be provided.’’. 
SEC. 207. TREATMENT OF ASSISTANCE. 
Section 312 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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 deter-
mining eligibility for or benefit levels under federally fund-
ed income assistance or resource-tested benefit pro-
grams.’’. 
SEC. 208. LIABILITY. 
Section 317 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5160) is re-
pealed. 
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SEC. 209. ADVANCE OF STATE EXPENDITURES. 
Section 319 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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. 210. PROCEDURE FOR DECLARATION OF MAJOR DIS-
ASTER. 
Section 401(a) of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5170(a)) 
is amended— 
(1) in the second sentence by inserting ‘‘reim-
bursable’’ after ‘‘Federal’’; 
(2) in the third sentence by inserting before the 
period at the end ‘‘and shall enter into an agreement 
to reimburse the United States for all expenses in-
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curred in providing assistance under this Act with 
respect to the disaster’’; and 
(3) in the fourth sentence by striking ‘‘cost- 
sharing’’. 
SEC. 211. GENERAL FEDERAL DISASTER ASSISTANCE. 
Section 402 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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. 212. ESSENTIAL DISASTER ASSISTANCE. 
Section 403 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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’’; 
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(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.’’; and 
(3) in subsection (c)— 
(A) in paragraph (3) by striking ‘‘out of 
funds made available to carry out this Act’’ and 
inserting ‘‘by the State’’; 
(B) by striking paragraph (4); 
(C) by redesignating paragraphs (5) and 
(6) as paragraphs (4) and (5), respectively; and 
(D) in paragraph (4) (as so redesignated) 
by striking ‘‘Not later than’’ and all that fol-
lows through ‘‘1988, the’’ and inserting ‘‘The’’. 
SEC. 213. HAZARD MITIGATION. 
Section 404 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170c) is re-
pealed. 
SEC. 214. REPAIR, RESTORATION, AND REPLACEMENT OF 
DAMAGED FACILITIES. 
Section 406 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5172) is 
amended to read as follows: 
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‘‘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. 215. DEBRIS REMOVAL. 
Section 407 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5173) is 
amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1) 
by striking ‘‘public interest,’’ and inserting 
‘‘public interest and if the State agrees to reim-
burse the United States for all expenses in-
curred in providing assistance under this sub-
section,’’; and 
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(B) in paragraph (2) by striking ‘‘make 
grants’’ and all that follows through ‘‘facility’’ 
and inserting ‘‘provide assistance to any State’’; 
(2) in subsection (b) by striking ‘‘or local gov-
ernment’’; and 
(3) by striking subsection (d). 
SEC. 216. TEMPORARY HOUSING ASSISTANCE. 
Section 408 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5174) is 
amended to read as follows: 
‘‘SEC. 408. 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— 
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‘‘(A) is provided by the State or a local 
government; and 
‘‘(B) has utilities provided by the State or 
a 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. 217. UNEMPLOYMENT ASSISTANCE. 
Section 410 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (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’’. 
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before the period at the end of the third sen-
tence; and 
(2) in subsection (b) by striking ‘‘or section 
503’’. 
SEC. 227. FEDERAL EMERGENCY ASSISTANCE. 
Section 502 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5192) is 
amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1) 
by striking ‘‘In’’ and inserting ‘‘Subject to sub-
section (d), in’’; and 
(B) in paragraph (1) by striking ‘‘, with or 
without reimbursement,’’; 
(2) in subsection (b) by striking ‘‘Whenever’’ 
and inserting ‘‘Subject to subsection (d), whenever’’; 
and 
(3) by adding at the end the following: 
‘‘(d) 
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.’’. 
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SEC. 228. AMOUNT OF ASSISTANCE. 
Section 503 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5193) is re-
pealed. 
SEC. 229. APPLICABILITY. 
(a) EFFECTIVE
DATE
OF
AMENDMENTS.—The 
amendments under this title shall be made on October 1, 
2019, 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). 
TITLE III—FEDERAL-AID 
HIGHWAYS 
SEC. 301. NATIONAL STANDARD FOR STATE PARTICIPA-
TION IN DISASTER INSURANCE PROGRAM. 
(a) WITHHOLDING OF APPORTIONMENTS FOR NON-
COMPLIANCE.—Chapter 1 of title 23, United States Code, 
is amended by adding at the end the following: 
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‘‘§ 171. National standard for State participation in 
disaster insurance program 
‘‘(a) WITHHOLDING OF APPORTIONMENTS FOR NON-
COMPLIANCE.—The Secretary shall withhold an amount 
equal to 10 percent of the amount required to be appor-
tioned to a State under each of paragraphs (1) and (2) 
of section 104(b) on October 1, 2021, and on October 1 
of each fiscal year thereafter, if the State does not meet 
the requirement of subsection (b) on that date. 
‘‘(b) REQUIREMENT.—A State meets the requirement 
of this subsection if the State is a participant in the Na-
tional Disaster Insurance Corporation, as determined pur-
suant to section 821(d) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.). 
‘‘(c) EFFECT OF NONCOMPLIANCE.—No funds with-
held under this section from apportionment to a State 
shall be available for apportionment to the State.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 1 of title 23, United States Code, is amended by add-
ing at the end the following: 
‘‘171. National standard for State participation in disaster insurance program.’’. 
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SEC. 302. EMERGENCY RELIEF PROGRAM FOR REPAIR OF 
HIGHWAYS. 
(a) CONDITION ON RECEIPT OF ASSISTANCE.—Sec-
tion 125 of title 23, United States Code, is amended by 
adding at the end the following: 
‘‘(h) REIMBURSEMENT
AGREEMENTS.—Assistance 
may only be provided to a State under this section if the 
State agrees to reimburse the United States for all ex-
penses incurred in providing such assistance. There are 
hereby appropriated to the Highway Trust Fund amounts 
equivalent to reimbursements received pursuant to this 
subsection.’’. 
(b) EFFECTIVE DATE.—The amendment under sub-
section (a) shall be made on October 1, 2019, and shall 
apply on and after such date, except to the extent provided 
in subsection (c). 
(c) INAPPLICABILITY
TO DISASTERS
AND EMER-
GENCIES DECLARED BEFORE EFFECTIVE DATE.—Sec-
tion 125 of title 23, United States Code, as in effect on 
the day before the date referred to in subsection (b), shall 
continue to apply with respect to any disaster or emer-
gency that commences or occurs (or is declared or deter-
mined to have commenced or occurred) before the date 
referred in subsection (b). 
Æ 
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