[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1007 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1007

     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 SENATE OF THE UNITED STATES

                             July 10, 1997

 Mr. Chafee (by request) introduced the following bill; which was read 
  twice and referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 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, as amended, 42 U.S.C. 5122, is amended by 
striking paragraphs (8) and (9) and inserting new paragraphs (8) and 
(9) as follows:
            ``(8) `Public facility' means the following facilities 
        owned by a State or local government:
                    ``(a)(1) Any sewage treatment and collection, water 
                supply and distribution, or airport facility;
                    ``(2) Any non-Federal-aid street, road, or highway;
                    ``(3) Any other public building, structure, or 
                system that is essential to life, health, education or 
                safety; or
                    ``(4) Parks other than those defined in paragraph 
                (b)(5) of this section.
                    ``(b) The term `public facility' does not include 
                the following facilities owned by a State or local 
                government:
                            ``(1) Flood control, navigation, 
                        irrigation, reclamation, or watershed 
                        development structure or systems;
                            ``(2) Electric utilities;
                            ``(3) Building contents;
                            ``(4) Cultural objects;
                            ``(5) Trees and other natural features that 
                        are located within parks and recreational 
                        areas, as well as on the grounds of other 
                        publicly-owned property;
                            ``(6) 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; and
                            ``(7) Beaches.
            ``(9)(a) `Private nonprofit facility' means private 
        nonprofit educational, emergency, medical, rehabilitational, 
        utilities other than electric utilities, and custodial care 
        facilities.
            ``(b) The term `private nonprofit facility' does not 
        include the following facilities owned by a private nonprofit 
        entity:
                    ``(1) Building contents;
                    ``(2) Cultural objects;
                    ``(3) Trees and other natural features that are 
                located within parks and recreational areas, as well as 
                on the grounds of other private nonprofit property; and
                    ``(4) Beaches.''
    (b) Section 102 is amended further 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' mean 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. PRE-DISASTER HAZARD MITIGATION.

    Title II of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, as amended, 42 U.S.C. 5121 et seq., is amended by 
inserting new section 203 as follows:
``Sec. 203. Pre-disaster hazard mitigation
    ``(a) The Director is authorized to establish a pre-disaster 
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 pre-disaster mitigation 
grants of not less than 75 percent of the cost of hazard mitigation 
measures to States and local governments and to eligible private 
nonprofit organizations to carry out the purposes of this section. The 
pre-disaster 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, community-wide 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 pre-disaster mitigation program authorized 
in subsection (a), the Director shall establish a National Pre-Disaster 
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 by 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 pre-disaster 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 in 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; and
            ``(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 chapter, 
shall evaluate performance results of those standards, criteria, and 
incentives, and shall make appropriate changes, as necessary, to 
enhance the effectiveness of pre-disaster and post-disaster mitigation 
measures.''

SEC. 4. MANAGEMENT EXPENSES.

    The Robert T. Stafford Disaster Relief and Emergency Assistance 
Act, as amended, 42 U.S.C. 5121 et seq., is amended by adding a new 
section 322, as follows:
    ``Sec. 322. Management Expenses.--Notwithstanding the provisions of 
any other law or administrative rule or guidance, for purposes of this 
chapter, the President shall establish management cost rates for 
grantees and subgrantees by rule. The President shall review the 
management cost rates every three years. All payments for management 
costs shall be in lieu of any indirect costs, administrative expenses, 
or any other expense not directly chargeable to a specific project 
under a major disaster (subchapter IV), emergency (subchapter V), or an 
emergency preparedness activity or measure (subchapters II and VI).''

SEC. 5. HAZARD MITIGATION.

    Section 404 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, as amended, 42 U.S.C. 5170c, is amended as follows--
            (a) In subsection (a), insert ``(1)'' between ``(a)'' and 
        ``In General.'';
            (b) In the first sentence of subsection (a), strike ``up 
        to'' after ``contribute'', and insert ``not less than'';
            (c) Insert 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, as amended, 42 U.S.C. 5121 et seq., is amended as follows:
            (a) in section 201(d), 42 U.S.C. 5131(d), strike ``50 
        percent'', and insert ``75 percent'';
            (b) in section 407(d), 42 U.S.C. 5173(d), strike ``shall 
        not be less than'', and insert ``shall not exceed'';
            (c) in section 611(f)(2), 42 U.S.C. 5196(f)(2), strike 
        ``one-half'', and insert ``three-quarters'';
            (d) in section 611(j)(3), 42 U.S.C. 5196(j)(3), strike 
        paragraph (3) in its entirety and insert ``The Director may 
        contribute up to 75 percent of the cost of organizational 
        equipment.'';
            (e) in section 611(j)(5), 42 U.S.C. 5196(j)(5), 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.'';
            (f) in section 613(a), 42 U.S.C. 5196b(a), strike ``one-
        half'', and insert ``three-quarters''; and
            (g) 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, as amended, 42 U.S.C. 5172, is amended as follows--
            (a) 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 that the Small 
        Business Administration determines it is eligible.''
            (b) Subsection (b) is repealed, and 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% 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 
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%, but not less 
than 50%, 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.''
            (c) Subsection (c) is repealed, and new subsection (c) is 
        inserted as follows:
    ``(c) Large In-Lieu Contributions.--
            ``(1)(A) For public facilities.--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)(A) For private nonprofit facilities.--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.''
            (d) 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, reconstruction, 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 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.''.
            (e) Repeal.--Subsection (f) of section 406 is repealed.

SEC. 8. FEDERAL FINANCIAL ASSISTANCE.

    (a) Sections 408 and 411 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act, as amended, 42 U.S.C. 5174, are here 
repealed.
    (b) New section 408 is added as follows--

``SEC. 408. FEDERAL FINANCIAL ASSISTANCE.

    ``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--
            ``(a) Housing needs.--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 pre-disaster primary residences, or whose pre-disaster 
residences are rendered uninhabitable as a result of damage caused by a 
major disaster. Individuals and households who have no pre-disaster 
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.
                    ``(1) 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 hook-ups, or unit installation 
                not being directly provided by the President.
                    ``(2) 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:
                    ``(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 (d)(1) of 
                this section, 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.''
    (c) Section 502(a)(6) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act, 42 U.S.C. 502(a)(6), is amended by deleting 
``temporary housing''.

SEC. 9. REPEAL.

    Section 417 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, as amended, 42 U.S.C. 5184, is repealed.

SEC. 10. REPEAL.

    Section 422 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, as amended, 42 U.S.C. 5189, is repealed.
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