[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2446 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2446

     To amend The Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to reduce the costs of disaster relief and emergency 
                  assistance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 10, 1997

 Mr. Shuster (for himself, Mr. Oberstar, Mr. Boehlert, and Mr. Borski) 
 (all by request) introduced the following bill; which was referred to 
           the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
     To amend The Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to reduce the costs of disaster relief and emergency 
                  assistance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Streamlining and Costs 
Reduction Act of 1997''.

SEC. 2. DEFINITIONS.

    (a) Section 102 of The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5122) is amended by striking 
paragraphs (8) and (9) and inserting new paragraphs (8) and (9) as 
follows:
            ``(8)(A) `Public facility' means the following facilities 
        owned by a State or local government:
                    ``(i) Any sewage treatment and collection, water 
                supply and distribution, or airport facility.
                    ``(ii) Any non-Federal-aid street, road, or 
                highway.
                    ``(iii) Any other public building, structure, or 
                system that is essential to life, health, education, or 
                safety.
                    ``(iv) Parks other than those defined in 
                subparagraph (B)(v) of this paragraph.
            ``(B) The term `public facility' does not include the 
        following facilities owned by a State or local government:
                            ``(i) Flood control, navigation, 
                        irrigation, reclamation, or watershed 
                        development, structure, or systems.
                            ``(ii) Electric utilities.
                            ``(iii) Building contents.
                            ``(iv) Cultural objects.
                            ``(v) Trees and other natural features that 
                        are located within parks and recreational 
                        areas, as well as on the grounds of other 
                        publicly owned property.
                            ``(vi) Parks, recreational areas, marinas, 
                        golf courses, stadiums, arenas, or other 
                        similar facilities, which generate any portion 
                        of their operational revenue through user fees, 
                        rents, admission charges, or similar fees.
                            ``(vii) Beaches.
            ``(9) `Private nonprofit facility' means private nonprofit 
        educational, emergency, medical, rehabilitational, utilities 
        other than electric utilities, and custodial care facilities. 
        The term `private nonprofit facility' does not include the 
        following facilities owned by a private nonprofit entity:
                    ``(A) Building contents.
                    ``(B) Cultural objects.
                    ``(C) Trees and other natural features that are 
                located within parks and recreational areas, as well as 
                on the grounds of other private nonprofit property.
                    ``(D) Beaches.''.
    (b) Such section 102 is further amended by adding the following 
definitions at the end of the section:
            ``(10) `Director' means the Director of the Federal 
        Emergency Management Agency.
            ``(11) `Hazard mitigation' or `mitigation' means programs 
        and actions to reduce the risk or impact of hazards in order to 
        reduce loss of life and injury, damage, or destruction of 
        property from a disaster.
            ``(12) `Incentives' means measures to induce action by 
        State and local governments, individuals, and other private 
        interests to minimize or reduce the loss of life and property 
        from disasters, including increased or reduced disaster 
        assistance cost sharing, and such other measures as the 
        President or Director may establish by regulation.''.

SEC. 3. PREDISASTER HAZARD MITIGATION.

    Title II of The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5131 et seq.) is amended by inserting at the 
end a new section 203 as follows:

``SEC. 203. PREDISASTER HAZARD MITIGATION.

    ``(a) The Director is authorized to establish a predisaster 
mitigation program to assist State and local governments to reduce 
injuries and loss of life, and to reduce damage or destruction of 
property from disasters before disasters occur; and is authorized to 
use incentives, disincentives, and other mitigation measures to reduce 
the cost of disasters to Federal, State, and local governments, 
particularly damages to public facilities, and to the private sector.
    ``(b) The Director is authorized to make predisaster mitigation 
grants of not less than 75 percent of the cost of hazard mitigation 
measures to States and local government and to eligible private 
nonprofit organizations to carry out the purposes of this section. The 
predisaster mitigation program established by this section shall not 
duplicate or replace assistance available to States and local 
governments and eligible nonprofit organizations under authorities and 
programs administered by other Federal departments or agencies.
    ``(c) The Director shall establish by rules and regulations the 
standards, incentives, and criteria applicable to grants made under the 
authority of this section, including--
            ``(1) incentives for measures that reduce the risk of 
        injuries and loss of life and reduce damages and destruction of 
        property from disasters and that exceed the minimum standards 
        and criteria established by the Director under this section;
            ``(2) incentives for establishing disaster assistance 
        programs, trust funds, or other measures that enhance the 
        ability of individuals, property owners, and States and local 
        governments to finance, reimburse, or compensate for losses 
        suffered from disasters;
            ``(3) procedures for the identification and evaluation of 
        natural hazards that threaten the State or community;
            ``(4) measures to reduce injuries and loss of life and to 
        reduce damages and destruction of property from disasters:
            ``(5) adoption and enforcement of laws, construction codes 
        and other codes, communitywide land use and other ordinances 
        and bylaws, and regulations to minimize or mitigate the effects 
        of disasters; and
            ``(6) such other mitigation measures as the President or 
        the Director may adopt by regulation.
    ``(d) To carry out the predisaster mitigation program authorized in 
subsection (a), the Director shall establish a National Predisaster 
Mitigation Fund (Fund) which shall be an account separate from any 
other accounts or funds and shall be available, without fiscal year 
limitation, for grants and other incentives to States and local 
governments and to nonprofit organizations to implement mitigation 
measures under standards and criteria established by the Director.
    ``(e) There are authorized to be appropriated to the Fund 
established pursuant to subsection (d) of this section such sums as may 
be necessary to implement this section.
    ``(f) The Director shall take into account the following when 
establishing priorities for predisaster mitigation grant applications:
            ``(1) The level and repetitive nature of the risks to be 
        mitigated.
            ``(2) Demonstrated State or local government commitment to 
        reduce damages from future disasters.
            ``(3) Official commitment by the State or local government 
        that non-Federal financial commitments are available for the 
        mitigation measures to be undertaken.
            ``(4) Certification that mitigation projects involving 
        public facilities will meet or exceed the mitigation criteria 
        and standards established by the Director under this section.
            ``(5) Assurances that the mitigation projects are not then 
        the subject matter of litigation before any Federal, State, or 
        local court or administrative agency.
            ``(6) Assurances that the mitigation projects will be 
        completed expeditiously, in a time period mutually agreed by 
        the Director and the applicant.
    ``(g) The Director shall review periodically the standards, 
criteria, and incentives established for mitigation under this title, 
shall evaluate performance results of those standards, criteria, and 
incentives, and shall make appropriate changes, as necessary, to 
enhance the effectiveness of predisaster and postdisaster mitigation 
measures.''.

SEC. 4. MANAGEMENT EXPENSES.

    The Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.) is amended by adding a new section 322 at the 
end of title III as follows:

``SEC. 322. MANAGEMENT EXPENSES.

    ``Notwithstanding the provisions of any other law or administrative 
rule or guidance, for purposes of this title, the President shall 
establish management cost rates for grantees and subgrantees by rule. 
The President shall review the management cost rates every 3 years. All 
payments for management costs shall be in lieu of any indirect costs, 
administrative expenses, or any other expenses not directly chargeable 
to a specific project under a major disaster (title IV), emergency 
(title V), or an emergency preparedness activity or measure (titles II 
and VI).''.

SEC. 5. HAZARD MITIGATION.

    Section 404 of The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170c) is amended as follows:
            (1) In subsection (a), insert ``(1) Federal contribution.--
        '' after ``In General.--''.
            (2) In the first sentence of subsection (a), strike ``up 
        to'' after ``contribute'' and insert ``not less than''.
            (3) Insert a new subsection (a)(2) as follows:
    ``(2) Incentives.--The President may provide by regulation 
incentives for Federal shares of assistance up to 90 percent for 
mitigation measures under this section for applicants that, at a 
minimum, have implemented the standards, incentives, and criteria 
established by the Director under section 203(c) in advance of major 
disasters declared by the President under this Act.''.

SEC. 6. FEDERAL COST SHARE

    The Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.) is amended as follows:
            (1) In section 201(d) (42 U.S.C. 5131(d)) strike ``50 per 
        centum'' and insert ``75 percent''.
            (2) In section 407(d) (42 U.S.C. 5173(d)) strike ``shall 
        not be less than'' and insert ``shall not exceed''.
            (3) In section 611(f)(2) (42 U.S.C. 5196(f)(2)) strike 
        ``one-half'' and insert ``three-quarters''.
            (4) In section 611(j) (42 U.S.C. 5196(j)) strike the text 
        of paragraph (3) in its entirety and insert ``The Director may 
        contribute up to 75 percent of the cost of organizational 
        equipment.''.
            (5) In section 611(j) (42 U.S.C. 5196(j)) strike the first 
        sentence of paragraph (5) and insert ``The Director may 
        contribute up to 75 percent of the eligible costs for projects 
        under this section.''.
            (6) In section 613(a) (42 U.S.C. 5196b(a)) strike ``one-
        half'' and insert `three-quarters''.
            (7) In section 614 (42 U.S.C. 5196c) strike all after 
        ``matches'' and insert ``provides 25 percent of the cost of 
        such facilities.''.

SEC. 7. REPAIR, RESTORATION, AND REPLACEMENT OF DAMAGED FACILITIES.

    Section 406 of The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5172) is amended as follows:
            (1) Paragraph (2) of subsection (a) is amended to read as 
        follows:
            ``(2) to a person who owns or operates a private nonprofit 
        facility damaged or destroyed by a major disaster for the 
        repair, restoration, reconstruction, or replacement of such 
        facility and for management expenses incurred by such person: 
        Provided, That no contributions shall be made unless the owner 
        or operator of the facility has applied first for a Small 
        Business Administration disaster loan (15 U.S.C. 636(b)) and 
        (A) has been determined to be ineligible for such a loan, or 
        (B) has obtained a loan in the maximum amount for which the 
        Small Business Administration determines it is eligible.''.
            (2) Subsection (b) is repealed and a new subsection (b) is 
        inserted as follows:
    ``(b) Cost Sharing.--
            ``(1) General rule.--The President is authorized to provide 
        assistance under this section of not less than 75 percent of 
        the net eligible costs of repair, restoration, reconstruction, 
        or replacement activities which are carried out under this 
        section. The President is authorized to provide assistance 
        under this section up to 90 percent of the net eligible costs 
        of repair, restoration, reconstruction, or replacement 
        activities that are carried out in the aftermath of major 
        disasters which cause catastrophic losses.
            ``(2) Increased federal cost share.--The President may 
        provide assistance under this section up to 90 percent of the 
        net eligible costs of repair, restoration, reconstruction, or 
        replacement activities that are carried out under this section 
        for those State or local governments that have implemented 
        hazard mitigation measures in advance of major disasters 
        declared by the President under this Act and that, at a 
        minimum, have implemented the standards, incentives, and 
        criteria established by the Director under section 203(c) in 
        advance of major disasters declared by the President under this 
        Act.
            ``(3) Decreased federal cost share.--The President may 
        reduce assistance under this section to amounts less than 75 
        percent, but not less than 50 percent, of the net eligible 
        costs of repair, restoration, reconstruction, or replacement 
        activities that are carried out under this section for those 
        State and local governments that are unable or unwilling to 
        take appropriate steps promptly and efficiently to complete the 
        processing of claims for assistance under this section.''.
            (3) Subsection (c) is repealed and a new subsection (c) is 
        inserted as follows:
    ``(c) Large In-Lieu Contributions.--
            ``(1) For public facilities.--(A) In any case where a State 
        or local government determines that the public welfare would 
not be served best by repairing, restoring, reconstructing, or 
replacing any public facility owned or controlled by such State or 
local government, it may elect to receive, in lieu of a contribution 
under subsection (a)(1), a contribution of 75 percent of the Federal 
share of the Federal estimate of the cost of repairing, restoring, 
reconstructing, or replacing such facility and of management expenses.
            ``(B) Funds contributed under this subsection may be used 
        to repair, restore, or expand other eligible public facilities, 
        to construct eligible new facilities, or to fund hazard 
        mitigation measures which the State or local government 
        determines to be necessary to meet a need for governmental 
        services and functions in the area affected by the major 
        disaster.
            ``(2) For private nonprofit facilities.--(A) 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, reconstructing, or replacing 
        such facility, such person may elect to receive, in lieu of a 
        contribution under subsection (a)(2), a contribution of 75 
        percent of the Federal share of the Federal estimate of the 
        cost of repairing, restoring, reconstructing, or replacing such 
        facility and of management expenses.
            ``(B) Funds contributed under this subsection may be used 
        to repair, restore, or expand other eligible private nonprofit 
        facilities owned or operated by the applicant, to construct 
        eligible new private nonprofit facilities to be owned or 
        operated by the applicant, or to fund hazard mitigation 
        measures that such private nonprofit organization determines to 
        be necessary to meet a need for its services and functions in 
        the area affected by the major disaster.''.
            (4) Subsection (e) of section 406 is amended to read as 
        follows:
    ``(e)(1) For the purposes of this section, the estimate of the cost 
of repairing, restoring, 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 the applicable codes, specifications, and standards in 
effect at the time of the major disaster declaration (including 
floodplain management and hazard mitigation criteria required by the 
President or by the Coastal Barrier Resources Act (16 U.S.C. 3501 et 
seq.) shall be treated as the net eligible cost of such repair, 
restoration, reconstruction, or replacement.
    ``(2) Within 18 months of the date of the enactment of this 
section, the President shall, through the Director of the Federal 
Emergency Management Agency, convene an expert panel, including 
representation from the construction industry, and shall develop cost 
estimating procedures consistent with industry practices.''.
            (5) Subsection (f) of section 406 is repealed.

SEC. 8. FEDERAL FINANCIAL ASSISTANCE.

    (a) Section 408 of The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5174) is amended to read as 
follows:

``SEC. 408. FEDERAL FINANCIAL ASSISTANCE.

    ``(a) In General.--The President 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 for housing, personal property, medical and dental or funeral 
expenses, transportation costs, and other needs. The President shall 
administer the program authorized by this section, and shall promulgate 
rules and regulations to carry out its provisions (which shall include 
criteria, standards, and procedures for determining eligibility for 
assistance). No individual or household shall receive financial 
assistance greater 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. The types of assistance that may be 
provided under this section are as follows:
            ``(1) The President may provide financial or other 
        assistance to individuals or families to respond to disaster-
        related housing needs of those who are displaced from their 
        predisaster primary residences, or whose predisaster residences 
        are rendered uninhabitable as a result of damage caused by a 
        major disaster. Individuals and households who have no 
        predisaster residence shall not be provided housing assistance 
        under this section. The most appropriate forms of housing 
        assistance to be provided to disaster victims shall be 
        determined in the President's discretion based upon 
        considerations of cost-effectiveness, convenience to disaster 
        victims, and such other factors as the President may deem 
        appropriate. One or more forms of housing assistance may be 
        made available, based on the suitability and availability of 
        the types of assistance to meet the disaster victims' verified 
        needs in the particular disaster situation.
            ``(2) Housing assistance may be provided to individuals or 
        households to rent alternate housing accommodations or existing 
        rental units, manufactured housing, recreational vehicles, or 
        other readily fabricated dwellings. The President may also 
        directly provide such housing units, acquired by purchase or 
        lease, to individuals or households who, because of lack of 
        available housing resources, would be unable to make use of the 
        assistance provided under this section. Direct assistance shall 
        continue for no longer than 18 months after the President's 
        major disaster declaration, unless the President determines 
        that it would be in the public interest to extend this period 
        due to extraordinary circumstances. After 18 months the 
        President may charge fair market rent for the accommodation 
        being provided. The amount of grant assistance shall be based 
        on the fair market rent for the accommodation being furnished 
        plus the cost of any transportation, utility hookups, or unit 
        installation not being directly provided by the President.
            ``(3) Housing assistance may be provided to repair owner-
        occupied private residences, utilities, and residential 
        infrastructure (such as private access routes) damaged by a 
        major disaster to habitable condition where such assistance 
        cannot be provided by voluntary agency assistance, insurance 
        proceeds, or through disaster loan benefits from the Small 
        Business Administration.
    ``(b) Certain Permanent Housing Construction.--The President may 
provide financial assistance or direct assistance to individuals or 
households to construct permanent housing in remote locations 
(primarily insular areas outside the continental United States) in 
cases where no alternative housing resources are available; where the 
types of temporary housing assistance enumerated above are unavailable, 
infeasible, or not cost-effective; and where such needs cannot be met 
by voluntary agency assistance, insurance proceeds, or disaster loan 
benefits from the Small Business Administration.
    ``(c) Sites.--Any readily fabricated dwelling provided under this 
section shall, whenever possible, be located on a site complete with 
utilities, and is provided by the disaster victim, or the State or 
local government, by the owner of the site, or by the occupant who was 
displaced 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.
    ``(d) Disposition of Units.--Notwithstanding any other provision of 
law, housing units purchased by the President for the purposes of 
housing disaster victims may be disposed of as follows:
            ``(1) Sold directly to individuals or households who are 
        occupants of temporary housing units if such individuals and 
        households need permanent housing. Such sales shall be 
        accomplished at prices that are fair and equitable, as 
        determined by the President. Notwithstanding any other 
        provision of law, the proceeds of sale shall be deposited into 
        the appropriate Disaster Relief Fund account. The President may 
        use the services of the General Services Administration to 
        accomplish the sale.
            ``(2) If not disposed of under paragraph (1) of this 
        subsection, temporary housing units may be resold in the 
        private market. Temporary housing units may also be sold, 
        transferred, donated, or otherwise made available directly to 
        States, other governmental entities, and voluntary 
        organizations for the sole purpose of providing temporary 
        housing to disaster victims in major disasters and emergencies: 
        Provided, That as a condition of such sale, transfer, or 
        donation to States, other governmental agencies, or voluntary 
        organizations, a covenant to comply with the nondiscrimination 
        provisions of section 308 is agreed to. The State, other 
        governmental agency, or voluntary organization must also agree 
        to obtain and maintain hazard and flood insurance on the 
        transferred housing unit.
    ``(e) Other Needs.--The President is authorized to provide 
financial assistance to individuals or households adversely affected by 
a major disaster to meet disaster-related medical, dental, and funeral 
expenses, where such individuals or households are unable to meet such 
needs through insurance proceeds or voluntary agency assistance. 
Financial assistance may also be authorized to address personal 
property needs, transportation expenses, and other necessary expenses 
or serious needs resulting from the major disaster where such expenses 
and needs cannot be met through insurance proceeds, voluntary agency 
assistance, or through loan assistance from the Small Business 
Administration.''.
    (b) Section 411 of such Act (42 U.S.C. 5178) is repealed.
    (c) Section 502(a)(6) of The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5192(a)(6)) is amended by deleting 
``temporary housing''.

SEC. 9. REPEAL.

    Section 417 of The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5184) is repealed.

SEC. 10. REPEAL.

    Section 422 of The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5189) is repealed.
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