An Act to revise and expand Federal programs for relief from the effects of major disasters, and for other purposes
PL 91-606 (S.3619), enacted 12/31/1970

75 Stat. 123. 
Ante, p. 245. 
75 Stat. 127. 
1744 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
26 use 4
0
6
^
1 
(^) Section 4061(b) (1) (relating to imposition of tax on parts 
and accessories). 
70 Stat. 388; 
(5) Scction 4071(d) (relating to imposition of tax on tires 
80 otst • 3 3 1 . 
I l l 
\ 
and tubes). 
(6) Section 4081 (b) (relating to imposition of tax on gasoline). 
(7) Section 4481(a) (relating to imposition of tax on use of 
highway motor vehicles). 
^8) Section 4481(e) (relating to period tax in effect). 
(9) Section 4482(c) (4) (defining taxable period). 
(10) Section 6156(e) (2) (relating to installment payments of 
tax on use of highway motor vehicles). 
(11) Section 6421(h) (relating to tax on gasoline used for 
certain nonhighway purposes or by local transit systems). 
(b) Section 6412(a) (2) of such Code (relating to floor stock refunds) 
is amended— 
(1) by striking out "1972" each place it appears and inserting 
in lieu thereof "1977"; 
(2) by striking out "January 1,1973" each place it appears and 
inserting in lieu thereof "January 1, 1978"; and 
(3) by striking out "February 10, 1973" each place it appears 
and mserting in lieu thereof "March 31, 1978". 
Approved December 31, 1970. 
Public Law 91-606 
December 31, 1970 
A N A C T 
[S.3619] 
To revise and expand Federal programs for relief from the effects of major 
disasters, and for other purposes;. 
Be if enacted by the Senate and House of Representatives 
of the 
A^t^l(^i97o^^^^^^ fww^^e^/ States of America in Congress assembled.. That this Act may 
l)e cited as the "Disaster Relief Act of 1970". 
TITLE I—FINDINGS AND DECLARATIONS; DEFINITIONS 
FINDINGS AND DECLARATIONS 
SEC. 101. (a) The Congress hereby finds and declares that— 
(1) because loss of life, human suffering, loss of incomie, and 
property loss and damage result from major disasters such as 
hurricanes, tornadoes, storms, floods, high waters, wind-driven 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1745 
waters, tidal waves, earthquakes, droughts, fires, and other catas-
troplies; and 
(2) because such disasters disrupt the normal functioning of 
government and the community, and adversely affect individ-
ual persons and families with great severity ;
* 
special measures, designed to assist the efforts of the affected States in 
expediting the rendering of aid, assistance, and emergency welfare 
services, and the reconstruction and rehabilitation of devastated areas, 
are necessary. 
(b) It is the intent of the Congress, by this Act, to provide an orderly 
and continuing means of assistance by the Federal Government to State 
and local governments in carrying out their responsibilities to alleviate 
the suffering and damage which result from such disasters by— 
(1) revising and broadening the scope of existing major dis-
aster relief programs; 
(2) encouraging the development of comprehensive disaster 
relief plans, programs, and organizations by the States; and 
(3) achieving greater coordination and responsiveness of Fed-
eral major disaster relief programs. 
DEFINITIONS 
SEC. 102. As used in this Act— 
(1) "major disaster" means any hurricane, tornado, storm, 
flood, high water, wind-driven water, tidal wave, earthquake, 
drought, fire, or other catastrophe in anj;^ part of the United States, 
which, in the determination of the President, is or threatens to be 
of sufficient severity and magnitude to warrant disaster assistance 
by the Federal Government to supplement the efforts and avail-
able resources of States, local governments, and relief organiza-
tions in alleviating the damage, loss, hardship, or suffering caused 
thereby, and with respect to which the Governor of any State in 
which such catastrophe occurs or threatens to occur certifies the 
need for Federal disaster assistance under this Act and gives 
assurance of the expenditure of a reasonable amount of the funds 
of such State, its local governments, or other agencies for alleviat-
ing the damage, loss, hardship or suffering resulting from such 
catastrophe; 
(2) "United States" means the fifty States, the District of 
Columbia, Puerto Rico, the Virgin Islands, Guam, American 
Samoa, and the Trust Territory of the Pacific Islands; 
1746 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
(3) "State" means any State of the United States, tlie District 
of Columbia, Puerto Rico, the Virgin Islands, Guam, American 
Samoa, or the Trust Territory of the Pacific Islands; 
(4) "Governor" means the chief executive of any State; 
(5) "local government" means any county, city, village, town, 
district, or other political subdivision of any State, and includes 
any rural community or unincorporated town or village for which 
an application for assistance is made by a State or political sub-
division thereof; 
(6) "Federal agency" means any department, independent 
establishment, Government corporation, or other agency of the 
executive branch of the Federal Government, except the American 
National Red Cross; and 
(7) "Director" means the Director of the Office of Emergency 
Preparedness. 
TITLE II—THE ADMINISTRATION OF DISASTER 
ASSISTANCE 
FEDERAL COORDINATING OFFICER 
Appointment. 
SEC. 201. (a) Immediately upon his designation of a major disaster 
area, the President shall appoint a Federal coordinating officer to 
operate under the Office of Emergency Preparedness in such area. 
Duties. 
(b) In order to effectuate the purposes of this Act, the coordinating 
officer, within the designated area, shall 
(1) make an initial appraisal of the types of relief most 
urgently needed; 
(2) establish such field offices as he deems necessary and as are 
authorized by the Director; 
(3) coordinate the administration of relief, including activities 
of the American National Red Cross, the Salvation Army, the 
Mennonite Disaster Service, and other relief or disaster assistance 
organizations which agree to operate under his advice or direction, 
except that nothing contained in this Act shall limit or in any way 
affect the responsibilities of the American National Red Cross 
under the Act of January 5,1905, as amended (33 Stat. 599); and 
(4) take such other action, consistent with authority delegated 
to him by the Director, and consistent with the provisions of this 
Act, as he may deem necessary to assist local citizens and public 
officials in promptly obtaining assistance to which they are 
entitled. 
EMERGENCY SUPPORT TEAMS 
SEC. 202. The Director is authorized to form emergency support 
teams of Federal personnel to be deployed in a major disaster area. 
Such emergency support teams shall assist the Federal coordinating 
officer in carrying out his responsibilities pursuant to section 201(b) 
of this Act. Upon request of the Director^ the head of any Federal 
department or agency is authorized to detail to temporary duty with 
the emergency support teams on either a reimbursable or nonreim-
bursable basis, as is determined necessary by the discretion of the 
Director, such personnel within the administrative jurisdiction of the 
head of the Federal department or agency as the Director may need 
or believe to be useful for carrying out the functions of the emergency 
support teams, each such detail to be without loss of seniority, pay, 
or other employee status. 
61 Stat. 80. 
36 use 1. 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1747 
COOPERATION 
OF FEDERAL AGENCIES I N 
RENDERING 
EMERGENCY 
ASSISTANCE 
SEC. 203. (a) In any major disaster, Federal agencies are hereby 
authorized, on direction of the President, to provide assistance by— 
(1) utilizing- or lending, with or without compensation there-
for, to States and local governments, their equipment, supplies, 
facilities, personnel, and other resources, other than the extension 
of credit under the authority of any Act; 
(2) distributing or rendering, through the American National 
Ked Cross, the Salvation Army, the Mennonite Disaster Service, 
and other relief and disaster assistance organizations, or other-
wise, medicine, food, and other consumable supplies, or emergency 
assistance ; 
(3) donating or lending equipment and supplies determined in 
accordance with applicable laws to be surplus to the needs and 
responsibilities of the Federal Government to State and local 
governments for use or distribution by them for the purposes of 
this Act; and 
(4) performing on public or private lands or waters any 
emergency work essential for the protection and preservation of 
life and property, including— 
(A) clearing and removing debris and wreckage in accord-
ance with section 224; 
(B) making repairs to, restoring to service, or replacing 
public facilities (including street, road, and highway facil-
ities) of State and local governments damaged or destroyed 
by a major disaster, except that the Federal contributions 
therefor shall not exceed the net cost of restoring each such 
facility on the basis of the design of such facility as it existed 
immediately prior to the disaster in conformity with current 
codes, specifications, and standards; 
(C) providing emergency shelter for individuals and 
families who, as a result of a major disaster, require such 
assistance; and 
(D) making contributions to State or local governments 
for the purpose of carrying out the provisions of para-
graph (4). 
(b) ICmergency work performed under subsection (a) (4) of this 
section shall not preclude Federal assistance under any other section 
of this Act. 
(c) Federal agencies may be reimbursed for expenditures under 
Reimbursement. 
this Act from funds appropriated for the purposes of this Act. Any 
funds received by Federal agencies as reimbursement for services or 
supplies furnished under the authority of this section shall be deposited 
to the credit of the appropriation or appropriations currently avail-
able for such services or supplies. 
(d) The Federal Government shall not be liable for any claim 
Liability. 
based upon the exercise or performance or the failure to exercise or 
perform a discretionary function or duty on the part of a Federal 
agency or an employee of the Federal Government in carrying out the 
provisions of this section. 
(e) In carrying out the purposes of this Act, any Federal agency is ^„H'^l^^^^i:,^"'^,f, 
authorized to accept and utilize the services or facilities of any State 
or local government, or of any agency, office, or employee thereof, with 
the consent of such government. Any Federal agency, in performing 
any activities under this section, is authorized to appoint and fix the 
compensation of such temporary personnel as may be necessary, with-
47-348 O - 72 - 27 (Pt. 2) 
and personnel, use 
1748 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
80 Stat. 443. 
5 u s e 5101. 
Ante, p. 198-1. 
5 use 3109. 
Presidential 
powers. 
Regulations. 
Program review. 
study. 
Report to Con-
gress. 
out regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service, and without regard to the 
provisions of chapter 51 and subchapter I I I of such title relating to 
classification and General Schedule pay rates, to employ experts and 
consultants in accordance with the provisions of section 3109 of such 
title, and to incur obligations on behalf of the Ignited States by con-
tract or otherwise for the acquisition, rental, or hire of equipment, serv-
ices, materials, and supplies for shipping, dray 
age, travel, and com-
munication, and for the supervision and administration of such 
activities. Such obligations, including obligations arising out of the 
temporary employment of additional personnel, may be incurred by an 
agency in such amount as may be made available to it by the President. 
(f) In the interest of providing maximum mobilization of Federal 
assistance under this Act, the President is authorized to coordinate in 
such manner as he may determine the activities of Federal agencies in 
providing disaster assistance. The President may direct any Federal 
agency, with or without reimbursement, to utilize its available per-
sonnel, equipment, supplies, facilities, and other resources in accord-
ance with the authority, herein contained. The President may prescribe 
such rules and regulations as may be necessary and proper to carry out 
any of the provisions of this Act, and he may exercise any power or 
authority conferred on him by any section of this Act either directly 
or through such Federal agency as he may designate. 
(g) The President, acting through the Office of Emergency Pre-
paredness, shall conduct periodic reviews (at least annually) of the 
activities of Federal and State departments or agencies providing 
disaster assistance, in order to assure maximum coordination of such 
programs, and to evaluate progress being made in the development of 
Federal, State, and local preparedness to cope with major disasters. 
(h) The Director of the Office of Emergency Preparedness is author-
ized and directed to make in cooperation with the heads of other 
affected Federal and State agencies, a full and complete investiga-
tion and study for the purpose of determining what additional or 
improved plans, procedures, and facilities are necessary to provide 
immediate effective action to prevent or minimize losses of publicly 
or privately owned property and personal injuries or deaths which 
could result from fires (forest and grass), earthquakes, tornadoes, 
freezes and frosts, tsunami, storm surges and tides, and floods, which 
are or threaten to become major disasters. Not later than one year after 
the date of enactment of this subsection, and from time to time, the 
Director of the Office of Emergency Preparedness shall report to Con-
gress the findings of this study and investigation together with his 
recommendations with respect thereto. 
Waiver. 
USE OF LOCAL FIRMS AND INDIVIDUALS 
SEC. 204. In the expenditure of Federal funds for debris clearance, 
distribution of supplies, reconstruction, and other major disaster 
assistance activities which may be carried out by contract with private 
organizations, firms, or individuals, preference shall be given, to the 
extent feasible and practicable, to those organizations, firms, and indi-
viduals who reside or do business primarily in the disaster area. 
FEDERAL GRANT-IN-AID PROGRAMS 
SEC. 205. Any Federal agency charged wth the administration of a 
Federal grant-in-aid program is authorized, if so requested by the 
applicant State or local authorities, to modify or waive, for the dura-
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1749 
tion of a major disaster proclamation, such administrative procedural 
conditions for assistance as would otherwise prevent the giving of 
assistance under such programs if the inability to meet such conditions 
is a result of the disaster. 
STATE DISASTER 
PLANS 
SEC. 206. (a) The President is authorized to provide assistance to 
the States in developing comprehensive plans and practicable pro-
grams for preparation against major disasters, and for relief and 
assistance for individuals, businesses, and local governments following 
such disasters. Such plans should include long-range recovery and 
reconstruction assistance plans for seriously damaged or destroyed 
public and private facilities. 
(b) The President is authorized to make grants of not more than 
$250,000 to any State, upon application therefor, for not to exceed 
50 per centum of the cost of developing such plans and programs. 
(c) Any State desiring assistance under this section shall designate 
or create an agency whidh is specially qualified to plan and administer 
such a disaster relief program, and shall, through such agency, submit 
a State plan to the President, which shall— 
(1) set forth a comprehensive and detailed State program for 
preparation against, and relief following, a major disaster, includ-
ing provisions for emergency and long-term assistance to individ-
uals, businesses, and local governments; and 
(2) include provision for the appointment of a State coordinat-
ing officer to act in cooperation with the Federal coordinating 
officer appointed under section 201 of this Act. 
(d) From time to time the Director shall make a report to the 
President, for submission to the Congress, containing his recommen-
dations for programs for the Federal role in the implementation and 
funding of comprehensive disaster relief plans, and such other rec-
ommendations relating to the Federal role in disaster relief activities 
as he deems warranted. 
(e) The President is authorized to make grants not to exceed 50 
per centum of the cost of improving, maintaining, and updating uon. 
State disaster assistance plans, except that no such grant shall exceed 
$25,000 per annum to any State. 
Grants, limita-
tion. 
State agency, 
designation. 
State coordina-
ting officer. 
Report to Pres-
ident; submission 
to Congress. 
Maintenance 
grants, limita-
USE AND COORDINATION OF RELIEF ORGANIZATIONS 
SEC. 207. (a) In providing relief and assistance following a major 
disaster, the Director may utilize, with their consent, the personnel 
and facilities of the American National Red Cross, the Salvation 
Army, the Mennonite Disaster Service, and other relief or disaster 
assistance organizations, in the distribution of medicine, food, sup-
plies, or other items, and in the restoration, rehabilitation, or recon-
struction of community services and essential facilities whenever 
the Director finds that such utilization is necessary. 
(b) The Director is authorized to enter into agreements with the 
American National Red Cross, the Salvation Army, the Mennonite 
Disaster Service, and other relief or disaster assistance organizations 
under which the disaster relief activities of such organizations may 
be coordinated by the Federal coordinating officer whenever such 
organizations are engaged in providing relief during and after a major 
disaster. Any such agreement shall include provisions conditioning 
use of the facilities of the Office of Emergency Preparedness and the 
1750 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
services of the coordinating officer upon compliance with regulations 
promulgated by the Director under sections 208 and 209 of this Act, 
and such other regulations as the Director may require. 
DUPLICATION OF BENEFITS 
SEC. 208. (a) The Director, in consultation with the head of each 
Federal agency administering any program providing financial assist-
ance to persons, business concerns, or other entities suffering losses as 
the result of a major disaster, shall assure that no such person, busi-
ness concern, or other entity will receive such assistance with respect 
to any part of such loss as to which he has received financial assistance 
under any other program. 
(b) The Director shall assure that no person, business concern, or 
other entity receives any Federal assistance for any part of a loss 
suffered as the result of a major disaster if such person, concern, or 
entity received compensation from insurance or any other source 
for that part of such a loss. Partial compensation for a loss or a part 
of a loss resulting from a major disaster shall not preclude additional 
Federal assistance for any part of such a loss not compensated 
otherwise. 
(c) Whenever the Director determines (1) that a person, business 
concern, or other entity has received assistance under this Act for a 
loss and that such person, business concern or other entity received 
assistance for the same loss from another source, and (2) that the 
amount received from all sources exceeded the amount of the loss, he 
shall direct such pei-son, business concern, or other entity to pay to 
the Treasury an amount, not to exceed the amount of Federal assist-
ance received, sufficient to reimburse the Federal Government for that 
part of the assistance which he deems excessive. 
NONDISCRIMINATION I N DISASTER ASSISTANCE 
Regulations. 
gj,^_ £09. (a) The Director shall issue, and may alter and amend, 
such regulations as may be necessary for the guidance of personnel 
carrying out emergency relief functions at the site of a major disaster. 
Such regulations shall include provisions for insuring that the distri-
bution of supplies, the processing of applications, and other relief and 
assistance activities shall be accomplished in an equitable and impartial 
manner, without discrimination on the grounds of race, color, religion, 
nationality, sex, age, or economic status prior to a major disaster, 
(b) As a condition of participation in the distribution of assistance 
or supplies under section 207, relief organizations shall be required to 
comply with regulations relating to nondiscrimination promulgated 
by the Director, and such other regulations applicable to activities 
within a major disaster area as he deems necessary for the effective 
coordination of relief efforts. 
DISASTER 
WARNINGS 
SEC. 210. The President is authorized to utilize or to make avail-
able to Federal, State, and local agencies the facilities of the civil 
defense communications system established and maintained pursuant 
to section 201 (c) of the Federal Civil Defense Act of 1950, as amended 
64 Stat. 1248. 
(50 U.S.C. app. 2281(c)), for the purpose of providing needed warn-
ing to governmental authorities and the civilian population in areas 
endangered by imminent major disasters. 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1751 
PREDISASTER ASSISTANCE 
SEC. 221. If the President determines that a major disaster is immi-
nent, he is authorized to use Federal departments, agencies, and instru-
mentalities, and all other resources of the Federal Government to avert 
or lessen the effects of such disaster before its actual occurrence. 
EMERGENCY COMMUNICATIONS 
SEC. 222. The Director is authorized during, or in anticipation of, 
an emergency to establish temporary communications in any major 
disaster area in order to carry out the functions of his office, and to 
make such communications available to State and local government 
officials and other persons as he deems appropriate. 
EMERGENCY PUBLIC TRANSPORTATION 
SEC. 223. The Director is authorized to provide temporary public 
transportation service to meet emergency needs in a major disaster 
area. Such service will provide transportation to governmental offices, 
supply centers, stores, post offices, schools, major employment centers, 
and such other places as may be necessary in order to enable the com-
munity to resume its normal pattern of life as soon as possible. 
DEBRIS REMOVAL 
SEC. 224. (a) The President, whenever he determines it to be in the 
public interest, is authorized— 
(1) through the use of Federal departments, agencies,, and 
instrumentalities, to clear debris and wreckage resulting from a 
major disaster from publicly and privately owned lands and 
waters. 
(2) to make grants to any State or local government for the 
Grants. 
purpose of removing debris or wreckage resulting from a major 
disaster from publicly or privately owned lands and waters. 
(b) No authority under this section shall be exercised unless the 
indemnity pro-
affected State or local government shall first arrange an unconditional 
authorization for removal of such debris or wreckage from public and 
private property, and, in the case of removal of debris or wreckage 
from private property, shall first agree to indemnify the Federal Gov-
ernment against any claim arising from such removal. 
FIRE S U P P R E S S I O N GRANTS 
SEC. 225. The President is authorized to provide assistance, includ-
ing grants, to any State for the suppression of any fire on publicly or 
privately owned forest or grassland which threatens such destruction 
as would constitute a major disaster. 
TEMPORARY HOUSING ASSISTANCE 
SEC. 226. (a) The Director is authorized to provide temporary 
housing or other emergency shelter, including, but not limited to, 
mobile homes or other readily fabricated dwellings for those who, as a 
result of such major disaster, require temporary housing or other 
emergency shelter, except that for the first twelve months of occu-
pancy no rentals shall be established for any such accommodations, 
thereafter rentals shall be established, based upon fair market value 
1752 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
of the accommodations being furnished, adjusted to take into consider-
ation the financial ability of the occupant. Notwithstanding any other 
provision of law, any such emergency housing acquired by purchase 
may be sold directly to individuals and families who are occupants 
thereof at prices that are fair and equitable. Any mobile home or 
readily fabricated dwelling shall be placed on a site complete with 
utilities provided by State or local government, or by the owner or 
occupant of the site who was displaced by the major disaster, without 
charge to the United States. However, the Director may elect to pro-
vide other more economical and accessible sites at Federal expense 
when he determines such action to be in the public interest. 
Temporary mort- 
^j^^ -j^j^g President is autliorized to provide assistance on a tem-
m^ems7 "
^
^
"
^ ^^^" 
porary basis in the form of mortgage or rental payments to or on 
behalf of individuals and families who, as a result of financial hard-
ship caused by a major disaster, have received written notice of dis-
possession or eviction from a residence by reason of foreclosure of any 
mortgage or lien, cancellation of any contract of sale, or termination 
of any lease, entered into prior to the disaster. Such assistance shall be 
provided for a period of not to exceed one year or for the duration of 
Reemployment 
|^]^g perlod of financial hardship, whichever is the lesser. The President 
assis ance. 
.^ authorized for the purposes of this subsection and in furtherance of 
the purposes of section 240 of this Act, to provide reemployment assist-
ance services under other laws to individuals who are unemployed as a 
result of a major disaster. 
SMALL BUSINESS DISASTER LOANS 
SEC. 231. In the administration of the disaster loan program under 
section 7(b) (1), (2), and (4) of the Small Business Act, as amended 
^7^ Stat. 389; 
(15 U.S.C. 636(b)), in the case of property loss or damage or injury 
' "^"^ ^ 
resulting from a major disaster as determined by the President or a 
disaster as determined by the Administrator, the Small Business 
Administration— 
(1) to the extent such loss or damage or injury is not compen-
sated for by insurance or otherwise, (A) shall, on that part of 
any loan in excess of $500, cancel the principal of the loan, except 
that the total amount so canceled shall not exceed $2,500, except 
that this clause (A) shall apply only to loans made to cover 
losses and damage and injury resulting from major disasters as 
determined by the President, and (B) may defer interest pay-
ments or principal payments, or both, in w^iole or in part, on 
any loan made under this section during the first three years of the 
term of the loan except that any such deferred payments shall bear 
interest at the rate determined under section 234 of this Act. 
(2) to the extent such injury, loss, or damage is not compen-
sated for by insurance or otherwise, may grant any loan for 
repair, rehabilitation, or replacement of property damaged, or 
destroyed, without regard to whether the required financial assist-
ance is otherwise available from private sources. 
(3) may, in the case of the total destruction or substantial prop-
erty damage of a home or business concern, refinance any mort-
gage or other liens outstanding against the destroyed or damaged 
property if such property is to be repaired, rehabilitated, or 
replaced, except that the amount refinanced shall not exceed the 
amount of the physical loss sustained. Any such refinancing shall 
be subject to the provisions of clauses (1) and (2) of this section. 
78 Stat. 7. 
75 Stat. 311. 
79 Stat. 497. 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1753 
FARMERS HOME ADMINISTRATION EMERGENCY LOANS 
SEC. 232. In the administration of the emergency loan program 
under subtitle C of the Consolidated Farmers Home Administration 
Act of 1961, as amended (7 U.S.C. 1961-1967), and the rural housing 
loan program under section 502 of title V of the Housing Act of 1949, 
as amended (42 U.S.C. 1472), in the case of loss or damage, resulting ^^l^^l^^'^^^^' 
from a major disaster as determined by the President, or a natural 
disaster as determined by the Secretary of Agriculture— 
(1) to the extent such loss or damage is not compensated for by 
insurance or otherwise, (A) shall, on that part of any loan in 
excess of $500, cancel the principal of the loan, except that the 
total amount so canceled shall not exceed $2,500, except that this 
clause (A) shall apply only to loans made to cover losses and 
damage resulting from major disasters as determined by the Pres-
ident, and (B) may defer interest payments or principal pay-
ments, or both, in whole or in part, on any loan made under this 
section during the first three years of the term of the loan, 
except that any such deferred payments shall bear interest at the 
rate determined under section 234 of this Act. 
(2) to the extent such injury, loss, or damage is not compen-
sated for by insurance or otherwise, may grant any loan for 
repair, rehabilitation, or replacement of property damaged or 
destroyed, without regard to whether the required financial assist-
ance is'otherwise available from private sources. 
(3) may, in the case of the total destruction or substantial prop-
erty damage of homes or farm service buildings and related struc-
tures and equipment, refinance any mortgage or other liens 
outstanding against the destroyed or damaged property if such 
property is to be repaired, rehabilitated, or replaced, except that 
the amount refinanced shall not exceed the amount of the physical 
loss sustained. Any such refinancing shall be subject to the provi-
sions of clauses (1) and (2) of this section. 
Limitation. 
LOANS HELD BY T H E VETERANS' ADMINISTRATION 
72 Stat. 1213. 
SEC. 233. (1) Section 1820(a) (2) of title 38, United States Code, is 
amended to read as follows: 
"(2) subject to specific limitations in this chapter, consent to 
the modification, with respect to rate of interest, time of payment 
of principal or interest or any portion thereof, security or other 
provisions of any note, contract, mortgage or other instrument 
securing a loan which has been guaranteed, insured, made or 
acquired under this chapter;" 
(2) Section 1820(f) of title 38, United States Code, is amended to 
so stat. isie. 
read as follows: 
"(f) Whenever loss, destruction, or damage to any residential prop-
erty securing loans guaranteed, insured, made, or acquired by the 
Administrator under this chapter occurs as the result of a major dis-
aster as determined by the President under the Disaster Assistance Act 
of 1970, the Administrator shall (1) provide counseling and such other 
service to the owner of such property as may be feasible and shall 
inform such owner concerning the disaster assistance available from 
other Federal agencies and from State or local agencies, and (2) pur-
suant to subsection (a) (2) of this section, extend on an individual case 
basis such forbearance or indulgence to such owner as the Adminis-
trator determines to be warranted by the facts of the case and the cir-
cumstances of such owner." 
Maximum rate. 
49 Stat. 1366 
7 u s e 912. 
1754 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
DISASTER LOAN INTEREST R.\TES 
SEC. 234. Any loan made under sections 231, and 232 of this Act 
shall not exceed the current cost of repairing or replacing the disaster 
injury, loss, or damage in conformity with current codes and specifica-
tions. Any loan made under sections 231, 232, 236(b) and 237 of this 
Act shall bear interest at a rate determined by the Secretary of the 
Treasury, taking into consideration the current average market yield 
on outstanding marketable obligations of the United States with 
remaining periods to maturity of ten to twelve years reduced by not to 
exceed 2 percentum per annum. In no event shall any loan made under 
this section bear interest at a rate in excess of 6 per centum per annum. 
AGE OF APPLICANT FOR LOANS 
SEC. 235, In the administration of any Federal disaster loan pro-
gram under the authority of section 231,232, or 233 of this Act, the age 
of any adult loan applicant shall not be considered in determining 
whether such loan should be made or the amount of such loan. 
F E D E R A L LOAN ADJUSTMENTS 
SEC. 236. (a) In addition to the loan extension authority provided 
in section 12 of the Rural Electrification Act, the Secretary of Agricul-
ture is authorized to adjust and readjust the schedules for payment 
of principal and interest on loans to borrowers under programs 
administered by the Rural Electrification Administration, and to 
extend the maturity date of any such loan to a date not beyond forty 
years from the date of such loan w^here he determines such action is 
necessary because of the impairment of the economic feasibility of the 
system, or the loss, destruction, or damage of the property of such 
borrowers as a result of a major disaster. 
(b) The Secretary of Housing and Urban Development is author-
ized to refinance any note or other obligation which is held by him 
in comiection w^ith any loan made by the Department of Housing and 
Urban Development or its predecessor in interest, or which is included 
within the revolving fund for liquidating programs established by 
12 us^c' i^^oi -5 ^
^
^
® Independent Offices Appropriation Act of 1955, where he finds such 
' refinancing necessary because of the loss, destruction, or damage (as a 
result of a major disaster) to property or facilities securing such obli-
gations. The Secretary may authorize a susi^ension in the payment of 
principal and interest charges on, and an additional extension in the 
maturity of, any such loan for a period not to exceed five years if 
he determines that such action is necessary to avoid severe financial 
hardship. 
AID TO MAJOR SOURCES OF EMPLOYMENT 
SEC. 237. (a) The Small Business Administration in the case of a 
nonagricultural enterprise, and the Farmers Home Administration 
in the case of an agricultural enterprise, are authorized to provide 
any industrial, commercial, agricultural, or other enterprise, which 
has constituted a major source of employment in an area suffering a 
major disaster and which is no longer in substantial operation as a 
result of such disaster, a loan in such amount as may be necessary to 
enable such enterprise to resume operations in order to assist in restor-
ing the economic viability of the disaster area. Loans authorized by 
this section shall be made without regard to limitations on the size of 
7 u s e 2011 note. 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1755 
loans which may otherwise be imposed by any other provision of law or 
regulation promulgated pursuant thereto. 
(b) Assistance under this Section shall be in addition to any other 
Federal disaster assistance, except that such other assistance may be 
adjusted or modified to the extent deemed appropriate by the Director 
under the authority of section 208 of this Act. Any loan made under 
this section shall be subject to the interest requirements of section 234 
of this Act, but the President, if he deems it necessary, may defer 
payments of principal and interest for a period not to exceed three 
years after the date of the loan. Any such deferred payments shall 
bear interest at the rate determined under section 234 of this Act. 
FOOD COUPONS AND 
DISTRIBUTION 
SEC. 238. (a) Whenever the President determines that, as a result 
of a major disaster, low-income households are unable to purchase 
adequ^ate amounts of nutritious food, he is authorized, under such 
terms and conditions as he may prescribe, to distribute through the 
Secretary of Agriculture coupon allotments to such households pursu-
ant to the provisions of the Food Stamp Act of 1964 and to make 
^^ stat. 703. 
surplus commodities available pursuant to the provisions 01 section 203 
of this Act. 
(b) The President, through the Secretary of Agriculture, is author-
ized to continue to make such coupon allotments and surplus com-
modities available to such households for so long as he determines 
necessary, taking into consideration such factors as he deems appro-
priate, including the consequences of the major disaster on the earning 
power of the households to which assistance is made available under 
this section. 
(c) Nothing in this section shall be construed as amending or other-
wise changing the provisions of the Food Stamp Act of 1964 except 
as they relate to the availability of food stamps in a major disaster 
area. 
LEGAL SERVICES 
SEC. 239. Whenever the Director determines that low-income indi-
viduals are unable to secure legal services adequate to meet their needs 
as a consequence of a major disaster, consistent with the goals of the 
programs authorized by this Act, the Director shall assure that such 
programs are conducted with the advice and assistance of appropriate 
Federal agencies and State and local bar associations. 
UNEMPLOYMENT ASSISTANCE 
SEC. 240. The President is authorized to provide to any individual 
unemployed as a result of a major disaster, such assistance as he deems 
appropriate while such individual is unemployed. Such assistance as 
the President shall provide shall not exceed to maximum amount 
and the maximum duration of payment under the unemployment com-
pensation program of the State in which the disaster occurred, and 
the amount of assistance under this section to any such individual 
shall be reduced by any amount of unemployment compensation or of 
private income protection insurance compensation available to such 
individual for such period of unemployment. 
1756 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
COMMUNITY DISASTER GRANTS 
SEC. 241. The President is authorized to make grants to any local 
government which, as the result of a major disaster, has suffered a 
substantial loss of property tax revenue (both real and personal). 
Grants made under this section may be made for the tax year in which 
the disaster occurred and for each of the following two tax years. 
The grant for any tax year shall not exceed the difference between the 
annual average of all property tax revenues received by the local 
government during the three-tax-year period immediately preceding 
the tax year in which the major disaster occurred and the actual 
property tax revenue received by the local government for the tax year 
in which the disaster occurred and for each of the two tax years fol-
lowing the major disaster but only if there has been no reduction in the 
tax rates and the tax assessment valuation factors of the local govern-
ment. If there has been a reduction in the tax rates or the tax assess-
ment valuation factors then, for the purpose of determining the 
amount of a grant under this section for the year or years when such 
reduction is in effect, the President shall use the tax rates and tax 
assessment valuation factors of the local government in effect at the 
time of the disaster without reduction, in order to determine the 
property tax revenues which would have been received by the local 
government but for such reduction. 
TIMBER SkLE 
CONTRACTS 
SEC. 242. (a) Where an existing timber sale contract between the 
Secretary of Agriculture or the Secretary of the Interior and a timber 
purchaser does not provide relief from major physical change not due 
to negligence of the purchaser prior to approval of construction of any 
section of specified road or of any other specified development facility 
and, as a result of a major disaster, a major physical change results 
in additional construction work in connection with such road or facility 
by such purchaser with an estimated cost, as determined by the 
appropriate Secretary, (1) of more than $1,000 for sales under one 
million board feet, (2) of more than $1 per thousand board feet for 
sales of one of three million board feet, or (3) of more than $3,000 
for sales over three million board feet, such increased construction cost 
shall be borne by the United States. 
(b) If the Secretarj^ determines that damages are so great that 
restoration, reconstruction, or construction is not practical under the 
cost-sharing arrangement authorized by subsection (a) of this section, 
the Secretary may allow cancellation of the contract notwithstanding 
contrary provisions therein. 
(c) The Secretary of Agriculture is authorized to reduce to seven 
days the minimum period of advance public notice required by the first 
3j3o^stau^35; 
scctiou of the Act of June 4,1897 (16 U.S.C. 476), in connection with 
66 Stat.* 95-' 
the salc of timber from national forests, whenever the Secretary deter-
mines that (1) the sale of such timber will assist in the construction of 
any area of a State damaged by a major disaster, (2) the sale of such 
timber will assist in sustaining the economy of such area, or (3) the 
sale of such timber is necessary to salvage the value of timber dam-
aged in such major disaster or to protect undamaged timber. 
(d) The President, when he determines it to be in the public interest, 
and acting through the Director of Emergency Preparedness, is 
authorized to make grants to any State or local government for the 
purpose of removing from privately owned lands timber damaged as 
a result of a major disaster, and such State or local government is 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1757 
authorized upon application, to make payments out of such grants to 
any person for reimbursement of expenses actually incurred by such 
person in the removal of damaged timber, not to exceed the amount 
that such expenses exceed the salvage value of such timber. 
M I N I M U M STANDARDS FOR RESIDENTIAL STRUCTURE RESTORATION 
SEC. 243. No loan or grant made by any relief organization operat-
ing under the supervision of the Director, for the repair, restoration, 
reconstruction, or replacement of any residential structure located in a 
major disaster area shall be made unless such structure will be 
repaired, restored, reconstructed, or replaced in accordance with appli-
cable standards of safety, decency, and sanitation and in conformity 
with applicable building codes and specifications. 
FEDERAL FACILITIES 
SEC. 251. The President may authoiize any Federal agency to 
repair, reconstruct, restore, or replace any facility owned by the 
United States and under the jurisdiction of such agency which is 
damaged or destroyed b j any major disaster if he determines that 
such repair, reconstruction, restoration, or replacement is of such 
importance and urgency that it cannot reasonably be deferred pend-
ing the enactment of specific authorizing legislation or the making of 
an appropriation for such purposes. In order to carry out the provi-
sions of this section, such repair, reconstruction, restoration, or 
replacement may be begun notwithstanding a lack or an insufficiency 
of funds appropriated for such purpose, where such lack or insuffi-
ciency can be remedied by the transfer, in accordance with law, of 
funds appropiiated to that agency for another purpose, 
STATE AND LOCAL GOVERNMENT FACILITIES 
SEC. 252. (a) The President is authorized to make contributions to 
Federal comri-
State or local governments to repair, restore, reconstruct, or replace ^"*^°"^-
public facilities belonging to such State or local governments which 
were damaged or destroyed by a major disaster, except that the Fed-
eral contribution therefor shall not exceed 100 per centum of the net 
cost of repairing, restoring, reconstructing, or replacing any such 
facility on the basis of the design of such facility as it existed imme-
diately prior to such disaster and in conformity with applicable codes, 
specifications, and standards. 
(b) In the case of any such public facilities which were in the 
Limitation. 
process of construction when damaged or destroyed by a major 
disaster, the Federal contribution shall not exceed 50 per centum of the 
net costs of restoring such facilities substantially to their prior to such 
disaster condition and of completing construction not performed prior 
to the major disaster to the extent the increase of such cost over the 
original construction cost is attributable to changed conditions result-
ing from a major disaster. 
(c) For the purposes of this section "public facility" includes any 
flood control, navigation, irrigation, reclamation, public power, 
sewage treatment and collection, water supply and distribution, water-
shed development, or airport facility, any non-Federal-aid street, 
road, or highway, and any other public building, structure, or system, 
other than one used exclusively for recreation purposes. 
"Public facu-
lty." 
1758 
PUBLIC LAW 91-606-DEC. 31, 1970 
[84 STAT. 
PRIORITY TO CERTAIN APPLICATIONS FOR PUBLIC FACILITY AND PUBLIC 
HOUSING 
ASSISTANCE 
SEC. 253. In the processing of applications for assistance, priority 
and immediate consideration may be given, during such period, not 
to exceed six months, as the President shall prescribe by proclamation, 
to applications from public bodies situated in major disaster areas, 
under the following Acts: 
75^sta[^'i7?^' 
^^^ *^^!® -^^ °* *^^ Housing Amendments of 1955, or any other 
42 use IVQI. 
^^^ providing assistance for repair, construction, or extension of 
public facilities; 
42 use Moi*. 
(^) ^^® United States Housing Act of 1937 for the provision of 
low-rent housing; 
not ^'^'L^^^^' 
(3) section 702 of the Housing Act of 1954 for assistance in 
78 Stat. 799. 
^ •,. 
i 
i 
• 
'^ 
40 use 462. 
public works planning; 
(4) section 702 of the Housing and Urban Development Act of 
79 Stat. 490; 
1965 pi'ovidiiig for grants for public facilities; or 
^^42*usc 3I02. 
(^) section 306 of the Consolidated Farmers Home Admin-
75 Stat. 308; 
istratioii Act. 
80 Stat. 1318. 
7 u s e 1926. 
RELOCATION 
ASSISTANCE 
SEC. 254. Notwithstanding any other provision of law, no person 
otherwise eligible for any kind of relocation assistance payment 
Post, p. 1903. 
authorized under section 114 of the Housing Act of 1949 shall be 
denied such eligibility as a result of his being unable, because of a 
major disaster as determined by the President, to reoccupy property 
from which he was displaced by such disaster. 
TITLE III—MISCELLANEOUS 
T E C H N I C A L 
AMENDMENTS 
82 Stat. 526. 
67 Stat. 121. 
SEC. 301. (a) Section 701(a) (3) (B) (ii) of the Housing Act of 1954 
(40 U.S.C. 461(a) (3) (B) (ii)) is amended to read as follows: "(ii) 
have suffered substantial damage as a result of a major disaster as 
determined by the President pursuant to the Disaster Relief Act of 
1970". 
(b) Section 8(b) (2) of the National Housing Act (12 U.S.C. 1706c 
(b) (2)) is amended by striking out of the last proviso "section 2(a) 
of the Act entitled 'An Act to authorize Federal assistance to States 
and local governments in major disasters, and for other purposes' 
(Public Law 875, Eighty-first Congress, approved September 30, 
1950)" and inseiting in lieu thereof "section 102(1) of the Disaster 
Relief Act of 1970". 
(c) Section 203(h) of the National Housing Act (12 U.S.C. 
68 Stat. 592; 
1709(h)) is amended by striking out "section 2(a) of the Act entitled 
'An Act to authorize Federal assistance to States and local govern-
ments in major disasters and for other purposes' (Public Law 875, 
Eighty-first Congress, approved September 30, 1950), as amended" 
and inserting in lieu thereof "section 102(1) of the Disaster Relief 
Act of 1970". 
(d) Section 221(f) of the National Housing Act (12 U.S.C. 
80 Stat. 1317. 
17151(f)) is amended by striking out of the last paragraph "the Act 
entitled 'An Act to authorize Federal assistance to States and local 
governments in major disastei-s, and for other purposes', approved 
September 30, 1950, as amended (42 U.S.C. 1855-1855g)" and insert-
ing in lieu thereof "the Disaster Relief Act of 1970". 
76 Stat. 51. 
72 Stat. 1337. 
84 STAT. ] 
PUBLIC LAW 91-606-DEC. 31, 1970 
1759 
(e) Section 7(a) (1) (A) of the Act of September 30, 1950 (Public 
Law 874, Eighty-first Congress, as amended; 20 U.S.C. 241-1 (a)(1) 
(A)), is amended by striking out "pursuant to section 2(a) of the Act 
^i stat. an. 
of September 30, 1950 (42 U.S.C. 1855a(a))" and inserting in lieu 
thereof "pursuant to section 102(1) of the Disaster Kelief Act of 1970". 
(f) Section 16(a) of the Act of September 23, 1950 (79 Stat. 1158; 
20 U.S.C. 646(a)) is amended by striking out "section 2(a) of the Act 
of September 30, 1950 (42 U.S.C. 1855a(a))" and inserting in lieu 
thereof "section 102(1) of the Disaster Relief Act of 1970". 
(g) Section 408(a) of the Higher Education Facilities Act of 1963 
(20 U.S.C. 758(a)) is amended by striking out "section 2(a) of the 
so stat. 1318. 
Act of September 30,1950 (42 U.S.C. 1855a(a))" and inserting in lieu 
thereof "section 102 (1) of the Disaster Relief Act of 1970". 
(h) Section 165(h) (2) of the Internal Revenue Code of 1954, relat-
ing to disaster losses (26 U.S.C. 165(h) (2)) is amended to read as 
follows: 
"(2) occurring in an area subsequently determined by the Pres-
ident of the United States to warrant assistance by the Federal 
Government under the Disaster Relief Act of 1970,". 
(i) Section 5064(a) of the Internal Revenue Code of 1954 (26 
U.S.C. 5064(a)), relating to losses caused by disaster, is amended by 
striking out "the Act of September 30, 1950 (42 U.S.C. 1855)" and 
inserting in lieu thereof "the Disaster Relief Act of 1970". 
(j) Section 5708(a) of the Internal Revenue Code of 1954 (26 
U.S.C. 5708(a)), relating to losses caused by disaster, is amended by 
^^ stat. 1420.. 
striking out "the Act of September 30, 1950 (42 U.S.C. 1855)" and 
inserting in lieu thereof "the Disaster Relief Act of 1970". 
(k) Section 3 of the Act of June 30, 1954 (68 Stat. 330; 48 U.S.C. 
1681), is amended by striking out of the last sentence "section 2 of 
^2 stat. 1213. 
the Act of September 30,1950 (64 Stat. 1109), as amended (42 U.S.C. 
1855a)" and inserting in lieu thereof "section 102(1) of the Disaster 
Relief Act of 1970". 
(1) Whenever reference is made in any provision of law (other than 
this Act), regulation, rule, record, or document of the United States to 
the Act of September 30,1950 (64 Stat. 1109), or any provision of such 
Act, such reference shall be deemed to be a reference to the Disaster 
Relief Act of 1970 or to the appropriate provision of the Disaster 
Relief Act of 1970 unless no such provision is included therein. 
REPEAL OF EXISTING LAW 
SEC. 302. The following Acts are hereby repealed: 
(1) the Act of September 30, 1950 (64 Stat. 1109); 
(2) the Disaster Relief Act of 1966, except section 7 (80 Stat. 
1316); and 
(3) the Disaster Relief Act of 1969 (83 Stat. 125). 
PRIOR ALLOCATION OF FUNDS 
SEC. 303. Funds allocated before the date of enactment of this Act 
under a Federal-State Disaster Agreement for the relief of a major 
disaster as defined in the Act of September 30,1950 (Public Law 875, 
Eighty-first Congress), and not expended on the date of enactment of 
this Act may be used by the State to make payments to any person for 
reimbursement of expenses actually incurred by such person in the 
removal of debris from community areas, but not to exceed the amount 
that such expenses exceed the salvage value of such debris, or in other-
42 use 
42 use 
note. 
42 use 
note. 
1855. 
1855aa 
1855aaa 
1760 
PUBLIC LAW 91-607-DEC. 31, 1970 
[84 STAT. 
It f
r
l
^
A
* ^^°^" 
^^^^ carrying out the purposes of such Act of September 30,1950, or 
use 1855. 
^j^.g j ^ ^ ^ 
EFFECTIVE DATE 
SEC. 304. This Act shall take effect immediately upon its enactment, 
except that sections 226(b), 237, 241, 252(a), and 254 shall take effect 
as of August 1,1969, and sections 231,232, and 233 shall take effect as 
of April 1,1970. 
Approved December 31, 1970. 
Public Law 91-607 
December 31, 1970 
AN A C T 
—[H. R. 6778] 
rj^Q amend the Bank Holding Company Act of 1956, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
c^"^n" Act"^ 
r'n//^efi? States of America in Congress assembled^ That this Act may 
Amendments o
f 
be citcd as the "Bank Holding Company Act Amendments of 1970". 
1970. 
TITLE I—BANK HOLDING COMPANIES 
o*r?an''."°^'^'"^ 
SEC. 101. (R) Section 2(a) of the Bank Holding Company Act of 
80 Stat'. 236. 
1956 (12 U.S.C. 1841(a)) is amended to read as follows: 
"SEC. 2. (a) (1) Except as provided in paragraph (5) of this sub-
section, 'bank holding company' means any company which has control 
over any bank or over any company that is or becomes a bank holding 
company by virtue of this Act. 
" (2) Any company has control over a bank or over any company if— 
"(A) the company directly or indirectly or acting through one 
or more other persons owns, controls, or has power to vote 25 
per centum or more of any class of voting securities of the bank or 
company; 
"(B) the company controls in any manner the election of a 
majority of the directors or trustees of the bank or company; or