IIB
106TH CONGRESS
1ST SESSION
H. R. 707
IN THE SENATE OF THE UNITED STATES
MARCH 4, 1999
Read twice and referred to the Committee on Environment and Public Works
AN ACT
To amend the Robert T. Stafford Disaster Relief and Emer-
gency 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Disaster Mitigation
and Cost Reduction Act of 1999’’.
SEC. 2. AMENDMENTS TO ROBERT T. STAFFORD DISASTER
RELIEF AND EMERGENCY ASSISTANCE ACT.
Except as otherwise specifically provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion of law, the reference shall be considered to be made
to a section or other provision of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
TITLE I—PREDISASTER HAZARD
MITIGATION
SEC. 101. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) greater emphasis needs to be placed on
identifying and assessing the risks to State and local
communities and implementing adequate measures
to reduce losses from natural disasters and to ensure
that critical facilities and public infrastructure will
continue to function after a disaster;
(2) expenditures for post-disaster assistance are
increasing without commensurate reduction in the
likelihood of future losses from such natural disas-
ters;
(3) a high priority in the expenditure of Federal
funds under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act should be to imple-
ment predisaster activities at the local level; and
(4) with a unified effort of economic incentives,
awareness and education, technical assistance, and
demonstrated Federal support, States and local com-
munities will be able to increase their capabilities to
form effective community-based partnerships for
mitigation purposes, implement effective natural dis-
aster mitigation measures that reduce the risk of fu-
ture damage, hardship, and suffering, ensure contin-
ued functioning of critical facilities and public infra-
structure, leverage additional non-Federal resources
into meeting disaster resistance goals, and make
commitments to long-term mitigation efforts in new
and existing structures.
(b) PURPOSE.—It is the purpose of this title to estab-
lish a predisaster hazard mitigation program that—
(1) reduces the loss of life and property, human
suffering, economic disruption, and disaster assist-
ance costs resulting from natural hazards; and
(2) provides a source of predisaster hazard
mitigation funding that will assist States and local
governments in implementing effective mitigation
measures that are designed to ensure the continued
functioning of critical facilities and public infrastruc-
ture after a natural disaster.
SEC. 102. STATE MITIGATION PROGRAM.
Section 201(c) (42 U.S.C. 5131(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) set forth, with the ongoing cooperation of
local governments and consistent with section 409, a
comprehensive and detailed State program for miti-
gating against emergencies and major disasters, in-
cluding provisions for prioritizing mitigation meas-
ures.’’.
SEC. 103. DISASTER ASSISTANCE PLANS.
Section 201(d) (42 U.S.C. 5131(d)) is amended to
read as follows:
‘‘(d) GRANTS FOR DISASTER ASSISTANCE AND HAZ-
ARD IDENTIFICATION.—The President is authorized to
make grants for—
‘‘(1) not to exceed 50 percent of the cost of im-
proving, maintaining, and updating State disaster
assistance plans including, consistent with section
409, evaluation of natural hazards and development
of the programs and actions required to mitigate
such hazards; and
‘‘(2) the development and application of im-
proved floodplain mapping technologies that can be
used by Federal, State, and local governments and
that the President determines will likely result in
substantial savings over current floodplain mapping
methods.’’.
SEC. 104. PREDISASTER HAZARD MITIGATION.
Title II (42 U.S.C. 5131–5132) is amended by add-
ing at the end the following:
‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.
‘‘(a) GENERAL AUTHORITY.—The President may es-
tablish a program to provide financial assistance to States
and local governments for the purpose of undertaking
predisaster hazard mitigation activities that are cost effec-
tive and substantially reduce the risk of future damage,
hardship, or suffering from a major disaster.
‘‘(b) PURPOSE OF ASSISTANCE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State or local government that receives
financial assistance under this section shall use the
assistance for funding activities that are cost effec-
tive and substantially reduce the risk of future dam-
age, hardship, or suffering from a major disaster.
‘‘(2) DISSEMINATION.—The State or local gov-
ernment may use not more than 10 percent of finan-
cial assistance it receives under this section in a fis-
cal year for funding activities to disseminate infor-
mation regarding cost effective mitigation tech-
nologies (such as preferred construction practices
and materials), including establishing and maintain-
ing centers for protection against natural disasters
to carry out such dissemination.
‘‘(c) ALLOCATION OF FUNDS.—The amount of finan-
cial assistance to be made available to a State, including
amounts made available to local governments of such
State, under this section in a fiscal year shall—
‘‘(1) not be less than the lesser of $500,000 or
1.0 percent of the total funds appropriated to carry
out this section for such fiscal year; but
‘‘(2) not exceed 15 percent of such total funds.
‘‘(d) CRITERIA.—Subject to the limitations of sub-
sections (c) and (e), in determining whether to provide as-
sistance to a State or local government under this section
and the amount of such assistance, the President shall
consider the following criteria:
‘‘(1) The clear identification of prioritized cost-
effective mitigation activities that produce meaning-
ful and definable outcomes.
‘‘(2) If the State has submitted a mitigation
program in cooperation with local governments
under section 201(c), the degree to which the activi-
ties identified in paragraph (1) are consistent with
the State mitigation program.
‘‘(3) The extent to which assistance will fund
activities that mitigate hazards evaluated under sec-
tion 409.
‘‘(4) The opportunity to fund activities that
maximize net benefits to society.
‘‘(5) The ability of the State or local govern-
ment to fund mitigation activities.
‘‘(6) The extent to which assistance will fund
mitigation activities in small impoverished commu-
nities.
‘‘(7) The level of interest by the private sector
to enter into a partnership to promote mitigation.
‘‘(8) Such other criteria as the President estab-
lishes in consultation with State and local govern-
ments.
‘‘(e) STATE NOMINATIONS.—
‘‘(1) IN GENERAL.—The Governor of each State
may recommend to the President not less than 5
local governments to receive assistance under this
section. The recommendations shall be submitted to
the President not later than October 1, 1999, and
each October 1st thereafter or such later date in the
year as the President may establish. In making such
recommendations, the Governors shall consider the
criteria identified in subsection (d).
‘‘(2) USE.—
‘‘(A) GENERAL
RULE.—In providing as-
sistance to local governments under this sec-
tion, the President shall select from local gov-
ernments recommended by the Governors under
this subsection.
‘‘(B) WAIVER.—Upon request of a local
government, the President may waive the limi-
tation in subparagraph (A) if the President de-
termines that extraordinary circumstances jus-
tify the waiver and that granting the waiver 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 in subsection
(d), any local governments of the State to receive as-
sistance under this section.
‘‘(f) SMALL IMPOVERISHED COMMUNITIES.—For the
purpose of this section, the term ‘small impoverished com-
munities’ means communities of 3,000 or fewer individuals
that are economically disadvantaged, as determined by the
State in which the community is located and based on cri-
teria established by the President.
‘‘(g) FEDERAL SHARE.—Financial assistance pro-
vided under this section may contribute up to 75 percent
of the total cost of mitigation activities approved by the
President; except that the President may contribute up to
90 percent of the total cost of mitigation activities in small
impoverished communities.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
$25,000,000 for fiscal year 1999 and $80,000,000 for fis-
cal year 2000.
‘‘(i) AUTHORIZATION OF SECTION 404 FUNDS.—Ef-
fective October 1, 2000, in addition to amounts appro-
priated under subsection (h) from only appropriations en-
acted after October 1, 2000, the President may use, to
carry out this section, funds that are appropriated to carry
out section 404 for post-disaster mitigation activities that
have not been obligated within 30 months of the disaster
declaration upon which the funding availability is based.
‘‘(j) REPORT ON FEDERAL AND STATE ADMINISTRA-
TION.—Not later than 18 months after the date of the
enactment of the Disaster Mitigation and Cost Reduction
Act of 1999, the President, in consultation with State and
local governments, shall transmit to Congress a report
evaluating efforts to implement this section and rec-
ommending a process for transferring greater authority
and responsibility for administering the assistance pro-
gram authorized by this section to capable States.’’.
SEC. 105. INTERAGENCY TASK FORCE.
The President shall establish an interagency task
force for the purpose of coordinating the implementation
of the predisaster hazard mitigation program authorized
by section 203 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act. The Director of the Fed-
eral Emergency Management Agency shall chair such task
force.
SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION
COSTS.
(a) IN
GENERAL.—Section 404(a) (42 U.S.C.
5170c(a)) is amended by striking ‘‘15 percent’’ and insert-
ing ‘‘20 percent’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to major disasters declared under
the Robert T. Stafford Disaster Relief Act and Emergency
Assistance Act after January 1, 1997.
SEC. 107. CONFORMING AMENDMENT.
The heading for title II is amended to read as follows:
‘‘TITLE II—DISASTER PREPARED-
NESS AND MITIGATION AS-
SISTANCE’’.
TITLE II—STREAMLINING AND
COST REDUCTION
SEC. 201. MANAGEMENT COSTS.
(a) IN GENERAL.—Title III (42 U.S.C. 5141–5164)
is amended by adding at the end the following:
‘‘SEC. 322. MANAGEMENT COSTS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law (including any administrative rule or guid-
ance), the President shall establish by rule management
cost rates for grantees and subgrantees. Such rates shall
be used to determine contributions under this Act for
management costs.
‘‘(b) MANAGEMENT COSTS DEFINED.—Management
costs include indirect costs, administrative expenses, asso-
ciated expenses, and any other expenses not directly
chargeable to a specific project under a major disaster,
emergency, or emergency preparedness activity or meas-
ure. Such costs include the necessary costs of requesting,
obtaining, and administering Federal assistance and costs
incurred by a State for preparation of damage survey re-
ports, final inspection reports, project applications, final
audits, and related field inspections by State employees,
including overtime pay and per diem and travel expenses
of such employees, but not including pay for regular time
of such employees.
‘‘(c) REVIEW.—The President shall review the man-
agement cost rates established under subsection (a) not
later than 3 years after the date of establishment of such
rates and periodically thereafter.’’.
(b) APPLICABILITY.—Section 322 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(as added by subsection (a) of this section) shall apply
as follows:
(1) Subsections (a) and (b) of such section 322
shall apply to major disasters declared under such
Act on or after the date of the enactment of this
Act. Until the date on which the President estab-
lishes the management cost rates under such sub-
section, section 406(f) shall be used for establishing
such rates.
(2) Subsection (c) of such section 322 shall
apply to major disasters declared under such Act on
or after the date on which the President establishes
such rates under subsection (a) of such section 322.
SEC. 202. ASSISTANCE TO REPAIR, RESTORE, RECON-
STRUCT, OR REPLACE DAMAGED FACILITIES.
(a) CONTRIBUTIONS.—Section 406(a) (42 U.S.C.
5172(a)) is amended to read as follows:
‘‘(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 which is damaged or
destroyed by a major disaster and for associ-
ated expenses incurred by such government;
and
‘‘(B) subject to paragraph (2), to a person
who owns or operates a private nonprofit facil-
ity damaged or destroyed by a major disaster
for the repair, restoration, reconstruction, or re-
placement of such facility and for associated ex-
penses incurred by such person.
‘‘(2) 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)(I) the owner or operator of the
facility has applied for a disaster loan
under section 7(b) of the Small Business
Act (15 U.S.C. 636(b)); and
‘‘(II) has been determined to be ineli-
gible for such a loan; or
‘‘(III) has obtained such a loan in the
maximum amount for which the Small
Business Administration determines the fa-
cility is eligible.
‘‘(B) CRITICAL
SERVICES
DEFINED.—In
this paragraph, the term ‘critical services’ in-
cludes, but is not limited to, power, water,
sewer, wastewater treatment, communications,
and emergency medical care.’’.
(b) MINIMUM FEDERAL SHARE.—Section 406(b) (42
U.S.C. 5172(b)) is amended to read as follows:
‘‘(b) MINIMUM
FEDERAL
SHARE.—The Federal
share of assistance under this section shall be not less
than 75 percent of the eligible cost of repair, restoration,
reconstruction, or replacement carried out under this sec-
tion.’’.
(c) 
LARGE
IN-LIEU
CONTRIBUTIONS.—Section
406(c) (42 U.S.C. 5172(c)) is amended to read as follows:
‘‘(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 be best served by re-
pairing, restoring, reconstructing, or replacing
any public facility owned or controlled by such
State or local government, the State or local
government may elect to receive, in lieu of a
contribution under subsection (a)(1)(A), a con-
tribution of 75 percent of the Federal share of
the Federal estimate of the cost of repairing,
restoring, reconstructing, or replacing such fa-
cility and of management expenses.
‘‘(B) AREAS
WITH
UNSTABLE
SOIL.—In
any case in which a State or local government
determines that the public welfare would not be
best served by repairing, restoring, reconstruct-
ing, or replacing any public facility owned or
controlled by such State or local government be-
cause soil instability in the disaster area makes
such repair, restoration, reconstruction, or re-
placement infeasible, the State or local govern-
ment may elect to receive, in lieu of a contribu-
tion under subsection (a)(1)(A), a contribution
of 90 percent of the Federal share of the Fed-
eral estimate of the cost of repairing, restoring,
reconstructing, or replacing such facility and of
management expenses.
‘‘(C) USE OF FUNDS.—Funds contributed
to a State or local government under this para-
graph may be used to repair, restore, or expand
other selected public facilities, to construct new
facilities, or to fund hazard mitigation measures
which the State or local government determines
to be necessary to meet a need for govern-
mental services and functions in the area af-
fected by the major disaster.
‘‘(2) FOR PRIVATE NONPROFIT FACILITIES.—
‘‘(A) IN GENERAL.—In any case where a
person who owns or operates a private nonprofit
facility determines that the public welfare would
not be best served by repairing, restoring, re-
constructing, or replacing such facility, such
person may elect to receive, in lieu of a con-
tribution under subsection (a)(1)(B), a con-
tribution of 75 percent of the Federal share of
the Federal estimate of the cost of repairing,
restoring, reconstructing, or replacing such fa-
cility and of management expenses.
‘‘(B) USE OF FUNDS.—Funds contributed
to a person under this paragraph may be used
to repair, restore, or expand other selected pri-
vate nonprofit facilities owned or operated by
the person, to construct new private nonprofit
facilities to be owned or operated by the person,
or to fund hazard mitigation measures that the
person determines to be necessary to meet a
need for its services and functions in the area
affected by the major disaster.
‘‘(3) MODIFICATION OF FEDERAL SHARE.—The
President shall modify the Federal share of the cost
estimate provided in paragraphs (1) and (2) if the
President determines an alternative cost share will
likely reduce the total amount of Federal assistance
provided under this section. The Federal cost share
for purposes of paragraphs (1) and (2) shall not ex-
ceed 90 percent and shall not be less than 50 per-
cent.’’.
(d) ELIGIBLE COST.—
(1) IN GENERAL.—Section 406(e) (42 U.S.C.
5172(e)) is amended to read as follows:
‘‘(e) ELIGIBLE COST.—
‘‘(1) IN GENERAL.—For the purposes of this
section, the estimate of the cost of repairing, restor-
ing, reconstructing, or replacing a public facility or
private nonprofit facility on the basis of the design
of such facility as it existed immediately before the
major disaster and in conformity with current appli-
cable codes, specifications, and standards (including
floodplain management and hazard mitigation cri-
teria required by the President or by the Coastal
Barrier Resources Act (16 U.S.C. 3501 et seq.))
shall be treated as the eligible cost of such repair,
restoration, reconstruction, or replacement. Subject
to paragraph (2), the President shall use the cost es-
timation procedures developed under paragraph (3)
to make the estimate under this paragraph.
‘‘(2) MODIFICATION
OF
ELIGIBLE
COST.—In
the event the actual cost of repairing, restoring, re-
constructing, or replacing a facility under this sec-
tion is more than 120 percent or less than 80 per-
cent of the cost estimated under paragraph (1), the
President may determine that the eligible cost be the
actual cost of such repair, restoration, reconstruc-
tion, or replacement. The government or person re-
ceiving assistance under this section shall reimburse
the President for the portion of such assistance that
exceeds the eligible cost of such repair, restoration,
reconstruction, or replacement.
‘‘(3) USE OF SURPLUS FUNDS.—In the event
the actual cost of repairing, restoring, reconstruct-
ing, or replacing a facility under this section is less
than 100 percent but not less than 80 percent of the
cost estimated under paragraph (1), the government
or person receiving assistance under this section
shall use any surplus funds to perform activities that
are cost-effective and reduce the risk of future dam-
age, hardship, or suffering from a major disaster.
‘‘(4) EXPERT
PANEL.—Not later than 18
months after the date of the enactment of the Disas-
ter Mitigation and Cost Reduction Act of 1999, the
President, acting through the Director of the Fed-
eral Emergency Management Agency, shall establish
an expert panel, including representatives from the
construction industry, to develop procedures for esti-
mating the cost of repairing, restoring, reconstruct-
ing, or replacing a facility consistent with industry
practices.
‘‘(5) 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 such facility
shall include, for purposes of this section, only those
costs which, under the contract for such construc-
tion, are the owner’s responsibility and not the con-
tractor’s responsibility.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on the date of the
enactment of this Act, and shall only apply to funds
appropriated after the date of the enactment of this
Act; except that paragraph (1) of section 406(e) of
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (as amended by paragraph (1)
of this subsection) shall take effect on the date that
the procedures developed under paragraph (3) of
such section take effect.
(e) ASSOCIATED EXPENSES.—
(1) IN
GENERAL.—Section 406 (42 U.S.C.
4172) is amended by striking subsection (f).
(2) OTHER ELIGIBLE COSTS.—Section 406(e)
(42 U.S.C. 5172(e)), as amended by subsection (d)
of this section, is amended by adding at the end the
following:
‘‘(6) OTHER ELIGIBLE COSTS.—For purposes of
this section, other eligible costs include the following:
‘‘(A) COSTS
OF
NATIONAL
GUARD.—The
cost of mobilizing and employing the National
Guard for performance of eligible work.
‘‘(B) COSTS OF PRISON LABOR.—The costs
of using prison labor to perform eligible work,
including wages actually paid, transportation to
a worksite, and extraordinary costs of guards,
food, and lodging.
‘‘(C) OTHER
LABOR
COSTS.—Base and
overtime wages for an applicant’s employees
and extra hires performing eligible work plus
fringe benefits on such wages to the extent that
such benefits were being paid before the disas-
ter.’’.
(3) EFFECTIVE DATE.—Paragraphs (1) and (2)
shall take effect on the date on which the President
establishes management cost rates under section
322(a) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (as added by section
201(a) of this Act). The amendment made by para-
graph (1) shall only apply to disasters declared by
the President under such Act after the date on
which the President establishes such cost rates.
SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
(a) IN GENERAL.—Section 408 (42 U.S.C. 5174) is
amended to read as follows:
‘‘SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
‘‘(a) GENERAL AUTHORITY.—Subject to the require-
ments of this section, the President, in consultation with
the Governor of the affected State, may provide financial
assistance, and, if necessary, direct services, to disaster
victims who as a direct result of a major disaster have
necessary expenses and serious needs where such victims
are unable to meet such expenses or needs through other
means. Under the preceding sentence, a victim shall not
be denied assistance under subsections (c)(1), (c)(3), or
(c)(4), solely on the basis that the victim has not applied
for or received 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 families to respond to the disaster-re-
lated housing needs of those who are displaced from
their predisaster primary residences or whose
predisaster primary residences are rendered un-
inhabitable as a result of damage caused by a major
disaster.
‘‘(2) DETERMINATION OF APPROPRIATE TYPES
OF ASSISTANCE.—The President shall determine ap-
propriate types of housing assistance to be provided
to disaster victims under this section based upon
considerations of cost effectiveness, convenience to
disaster victims, and such other factors as the Presi-
dent may consider appropriate. One or more types of
housing assistance may be made available, based on
the suitability and availability of the types of assist-
ance, to meet the needs of disaster victims 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 under this
section to individuals or households to rent
alternate housing accommodations, existing
rental units, manufactured housing, rec-
reational vehicles, or other readily fab-
ricated dwellings.
‘‘(ii) AMOUNT.—The amount of as-
sistance under clause (i) shall be based on
the fair market rent for the accommoda-
tion being furnished plus the cost of any
transportation, utility hookups, or unit in-
stallation not being directly provided by
the President.
‘‘(B) DIRECT ASSISTANCE.—
‘‘(i) IN
GENERAL.—The President
may also directly provide under this section
housing units, acquired by purchase or
lease, to individuals or households who, be-
cause of a lack of available housing re-
sources, would be unable to make use of
the assistance provided under subpara-
graph (A).
‘‘(ii) PERIOD
OF
ASSISTANCE.—The
President may not provide direct assist-
ance under clause (i) with respect to a
major disaster after the expiration 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 such period if the President deter-
mines that due to extraordinary cir-
cumstances an extension would be in the
public interest.
‘‘(iii) 
COLLECTION
OF
RENTAL
CHARGES.—After the expiration of the 18-
month period referred to in clause (ii), the
President may charge fair market rent for
the accommodation being provided.
‘‘(2) REPAIRS.—The President may provide fi-
nancial assistance for the repair of owner-occupied
private residences, utilities, and residential infra-
structure (such as private access routes) damaged by
a major disaster to a habitable or functioning condi-
tion. A recipient of assistance provided under this
paragraph need not show that the assistance can be
met through other means, except insurance proceeds,
if the assistance is used for emergency repairs to
make a private residence habitable and does not ex-
ceed $5,000 (based on fiscal year 1998 constant dol-
lars).
‘‘(3) REPLACEMENT.—The President may pro-
vide financial assistance for the replacement of
owner-occupied private residences damaged by a
major disaster. Assistance provided under this para-
graph shall not exceed $10,000 (based on fiscal year
1998 constant dollars). The President may not waive
any provision of Federal law requiring the purchase
of flood insurance as a condition for the receipt of
Federal disaster assistance with respect to assist-
ance provided under this paragraph.
‘‘(4) PERMANENT HOUSING CONSTRUCTION.—
The President may provide financial assistance or
direct assistance under this section to individuals or
households to construct permanent housing in insu-
lar areas outside the continental United States and
other remote locations in cases in which—
‘‘(A) no alternative housing resources are
available; and
‘‘(B) the types of temporary housing as-
sistance described in paragraph (1) are unavail-
able, infeasible, or not cost effective.
‘‘(d) TERMS AND CONDITIONS RELATING TO HOUS-
ING ASSISTANCE.—
‘‘(1) SITES.—Any readily fabricated dwelling
provided under this section shall, whenever possible,
be located on a site complete with utilities, and shall
be provided by the State or local government, by the
owner of the site, or by the occupant who was dis-
placed by the major disaster. Readily fabricated
dwellings may be located on sites provided by the
President if the President determines that such sites
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 purposes of hous-
ing disaster victims may be sold directly to
the individual or household who is occupy-
ing the unit if the individual or household
needs permanent housing.
‘‘(ii) SALES
PRICE.—Sales of tem-
porary housing units under clause (i) shall
be accomplished at prices that are 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 into the appropriate Disaster
Relief Fund account.
‘‘(iv) 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.—
‘‘(i) SALE.—If not disposed of under
subparagraph (A), a temporary housing
unit purchased by the President for the
purposes of housing disaster victims may
be resold.
‘‘(ii) DISPOSAL
TO
GOVERNMENTS
AND VOLUNTARY ORGANIZATIONS.—A tem-
porary housing unit described in clause (i)
may also 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 such sale, transfer, or
donation, the State, other governmental
agency, or voluntary organization agrees to
comply with the nondiscrimination provi-
sions of section 308 and to obtain and
maintain hazard 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 the affected State, may provide financial
assistance under this section to an individual or
household adversely affected by a major disaster to
meet disaster-related medical, dental, and funeral
expenses.
‘‘(2) PERSONAL PROPERTY, TRANSPORTATION,
AND
OTHER
EXPENSES.—The President, in con-
sultation with the Governor of the affected State,
may provide financial assistance under this section
to an individual or household described in paragraph
(1) to address personal property, transportation, and
other necessary expenses or serious needs resulting
from the major disaster.
‘‘(f) STATE ROLE.—The President shall provide for
the substantial and ongoing involvement of the affected
State in administering the assistance under this section.
‘‘(g) MAXIMUM AMOUNT OF ASSISTANCE.—No indi-
vidual or household shall receive financial assistance great-
er than $25,000 under this section with respect to a single
major disaster. Such limit shall be adjusted annually to
reflect changes in the Consumer Price Index for all Urban
Consumers published by the Department of Labor.
‘‘(h) ISSUANCE OF REGULATIONS.—The President
shall issue rules and regulations to carry out the program,
including criteria, standards, and procedures for determin-
ing eligibility for assistance.’’.
(b) CONFORMING AMENDMENT.—Section 502(a)(6)
(42 U.S.C. 5192(a)(6)) is amended by striking ‘‘tem-
porary housing’’.
(c) ELIMINATION
OF
INDIVIDUAL
AND
FAMILY
GRANT PROGRAMS.—Title IV (42 U.S.C. 5170–5189a) is
amended by striking section 411 (42 U.S.C. 5178).
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 545th day following
the date of the enactment of this Act.
SEC. 204. REPEALS.
(a) COMMUNITY DISASTER LOANS.—Section 417 (42
U.S.C. 5184) is repealed.
(b) SIMPLIFIED
PROCEDURE.—Section 422 (42
U.S.C. 5189) is repealed.
SEC. 205. STATE ADMINISTRATION OF HAZARD MITIGATION
PROGRAM.
Section 404 (42 U.S.C. 5170c) is amended by adding
at the end the following:
‘‘(c) PROGRAM ADMINISTRATION BY STATES.—
‘‘(1) IN GENERAL.—A State desiring to admin-
ister the hazard mitigation assistance program es-
tablished by this section with respect to hazard miti-
gation assistance in the State may submit to the
President an application for the delegation of such
authority.
‘‘(2) CRITERIA.—The President, in consultation
with States and local governments, shall establish
criteria for the approval of applications submitted
under paragraph (1). The criteria shall include, at a
minimum, the following:
‘‘(A) The demonstrated ability of the State
to manage the grant program under this sec-
tion.
‘‘(B) Submission of the plan required
under section 201(c).
‘‘(C) A demonstrated commitment to miti-
gation 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
approving an application of a State submitted under
paragraph (1), the President determines that the
State is not administering the hazard mitigation as-
sistance program established by this section in a
manner satisfactory to the President, the President
shall withdraw such approval.
‘‘(5) AUDITS.—The President shall provide for
periodic audits of the hazard mitigation assistance
programs administered by States under this sub-
section.’’.
SEC. 206. STATE ADMINISTRATION OF DAMAGED FACILI-
TIES PROGRAM.
(a) PILOT PROGRAM.—In cooperation with States
and local governments and in coordination with efforts to
streamline the delivery of disaster relief assistance, the
President shall conduct a pilot program for the purpose
of determining the desirability of State administration of
parts of the assistance program established by section 406
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5172).
(b) STATE PARTICIPATION.—
(1) CRITERIA.—The President may establish
criteria in order to ensure the appropriate implemen-
tation of the pilot program under subsection (a).
(2) MINIMUM NUMBER OF STATES.—The Presi-
dent shall conduct the pilot program under sub-
section (a) in at least 2 States.
(c) REPORT.—Not later than 3 years after the date
of the enactment of this Act, the President shall transmit
to Congress a report describing the results of the pilot pro-
gram conducted under subsection (a), including identify-
ing any administrative or financial benefits. Such report
shall also include recommendations on the conditions, if
any, under which States should be allowed the option to
administer parts of the assistance program under section
406 of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5172).
SEC. 207. STUDY REGARDING COST REDUCTION.
Not later than 3 years after the date of the enact-
ment of this Act, the Comptroller General of the United
States shall conduct a study to estimate the reduction in
Federal disaster assistance that has resulted and is likely
to result from the enactment of this Act.
SEC. 208. REPORT ON ASSISTANCE TO RURAL COMMU-
NITIES.
Not later than 180 days after the date of the enact-
ment of this Act, the Director of the Federal Emergency
Management Agency shall prepare and transmit to Con-
gress a report on methods and procedures that the Direc-
tor recommends to accelerate the provision of Federal dis-
aster assistance under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) to rural communities.
SEC. 209. STUDY REGARDING INSURANCE FOR PUBLIC IN-
FRASTRUCTURE.
The Comptroller General of the United States shall
conduct a study to determine the current and future ex-
pected availability of disaster insurance for public infra-
structure eligible for assistance under section 406 of the
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5170).
SEC. 210. PUBLIC COMMENT REQUIREMENT.
Title III (42 U.S.C. 5141–5164) (as amended by sec-
tion 201 of this Act) is amended by adding at the end
the following:
‘‘SEC. 323. PUBLIC COMMENT REQUIREMENT.
‘‘(a) IN GENERAL.—The Director of the Federal
Emergency Management Agency shall provide an oppor-
tunity for public comment before adopting any new or
modified policy that would have a meaningful impact on
the amount of disaster assistance that may be provided
to a State or local government by the President under this
Act.
‘‘(b) RETROACTIVE APPLICATION
OF POLICIES.—
The Director may not adopt any new or modified policy
that would retroactively reduce the amount of assistance
provided to a State or local government under this Act.’’.
TITLE III—MISCELLANEOUS
SEC. 301. TECHNICAL CORRECTION OF SHORT TITLE.
The first section (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
Disaster Relief and Emergency Assistance Act’.’’.
SEC. 302. DEFINITION OF STATE.
Section 102 (42 U.S.C. 5122) is amended in each of
paragraphs (3) and (4) by striking ‘‘the Northern’’ and
all that follows through ‘‘Pacific Islands’’ and inserting
‘‘and the Commonwealth of the Northern Mariana Is-
lands’’.
SEC. 303. FIRE SUPPRESSION GRANTS.
Section 420 (42 U.S.C. 5187) is amended by insert-
ing ‘‘and local government’’ after ‘‘State’’.
SEC. 304. BUY AMERICAN.
(a) COMPLIANCE WITH BUY AMERICAN ACT.—No
funds authorized to be appropriated pursuant to this Act
or any amendment made by this Act may be expended by
an entity unless the entity, in expending the funds, com-
plies with the Buy American Act (41 U.S.C. 10a et seq.).
(b) DEBARMENT
OF
PERSONS
CONVICTED
OF
FRAUDULENT USE OF ‘‘MADE IN AMERICA’’ LABELS.—
(1) IN GENERAL.—If the Director of the Fed-
eral Emergency Management Agency determines
that a person has been convicted of intentionally
affixing a label bearing a ‘‘Made in America’’ in-
scription to any product sold in or shipped to the
United States that is not made in America, the Di-
rector shall determine, not later than 90 days after
determining that the person has been so convicted,
whether the person should be debarred from con-
tracting under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act.
(2) DEBAR DEFINED.—In this section, the term
‘‘debar’’ has the meaning given that term by section
2393(c) of title 10, United States Code.
Passed the House of Representatives March 4,
1999.
Attest:
JEFF TRANDAHL,
Clerk.