[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4056 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4056

     To amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act and other laws to return primary responsibility for 
 disaster relief to the States, to establish a private corporation to 
 insure States against risks and costs of disasters otherwise borne by 
   the States, and to provide for reimbursable Federal assistance to 
States for activities in response to disasters, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 2017

   Mr. Kind introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
 Committees on Financial Services, and Ways and Means, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act and other laws to return primary responsibility for 
 disaster relief to the States, to establish a private corporation to 
 insure States against risks and costs of disasters otherwise borne by 
   the States, and to provide for reimbursable Federal assistance to 
States for activities in response to disasters, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Disaster Insurance 
Risk Equality Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
              TITLE I--NATIONAL DISASTER INSURANCE PROGRAM

Sec. 101. Disaster insurance program.
    TITLE II--FEDERAL PROGRAM FOR REIMBURSABLE DISASTER RELIEF AND 
                          EMERGENCY ASSISTANCE

Sec. 201. Findings and declarations.
Sec. 202. Waiver of administrative conditions.
Sec. 203. Emergency support teams.
Sec. 204. Reimbursement.
Sec. 205. Performance of services.
Sec. 206. Reimbursement agreements and conditions.
Sec. 207. Treatment of assistance.
Sec. 208. Liability.
Sec. 209. Advance of State expenditures.
Sec. 210. Procedure for declaration of major disaster.
Sec. 211. General Federal disaster assistance.
Sec. 212. Essential disaster assistance.
Sec. 213. Hazard mitigation.
Sec. 214. Repair, restoration, and replacement of damaged facilities.
Sec. 215. Debris removal.
Sec. 216. Temporary housing assistance.
Sec. 217. Unemployment assistance.
Sec. 218. Crisis counseling assistance and training.
Sec. 219. Community disaster loans.
Sec. 220. Emergency communications.
Sec. 221. Emergency public transportation.
Sec. 222. Fire suppression.
Sec. 223. Timber sale contracts.
Sec. 224. Simplified procedure.
Sec. 225. Appeals of assistance decisions.
Sec. 226. Procedure for declaration.
Sec. 227. Federal emergency assistance.
Sec. 228. Amount of assistance.
Sec. 229. Applicability.
                    TITLE III--FEDERAL-AID HIGHWAYS

Sec. 301. National standard for State participation in disaster 
                            insurance program.
Sec. 302. Emergency relief program for repair of highways.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) while disasters can strike anywhere within the United 
        States, certain areas historically have been more susceptible 
        or vulnerable to disasters;
            (2) the Federal Government has assumed the financial 
        responsibility for much of the emergency relief and 
        reconstruction provided after disasters;
            (3) the amount of Federal financial assistance provided for 
        disaster relief and the annual disaster relief obligations of 
        the Federal Emergency Management Agency have both been steadily 
        increasing over time;
            (4) the costs of disaster assistance have been spread 
        disproportionately to all United States citizens rather than to 
        citizens of the areas that are most directly affected; and
            (5) an amendment to the Constitution of the United States 
        requiring a balanced Federal budget would require major 
        retrenchments in activities that assist citizens of the United 
        States in times of crises and distress.
    (b) Purposes.--The purposes of this Act are--
            (1) to reaffirm the individual States' primary 
        responsibility for disaster relief;
            (2) to restore the Federal Government's role for disaster 
        relief to one of secondary support, provided on a reimbursable 
        basis, in unusual or special emergency situations that require 
        services best provided by Federal agencies; and
            (3) to establish a private corporation to provide risk-
        based insurance to the individual States to assist the States 
        in meeting their obligations in disaster relief.

              TITLE I--NATIONAL DISASTER INSURANCE PROGRAM

SEC. 101. DISASTER INSURANCE PROGRAM.

    The Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.) is amended by adding at the end the following 
new title:

                ``TITLE VIII--DISASTER INSURANCE PROGRAM

                    ``Subtitle A--Insurance Program

``SEC. 801. ESTABLISHMENT OF INSURANCE PROGRAM.

    ``The National Disaster Insurance Corporation established under 
subtitle B shall establish and carry out an insurance program under 
this subtitle to provide coverage to States against certain losses and 
costs arising from disasters, which shall be funded solely by State 
premiums and payments and shall operate on an actuarially sound basis.

``SEC. 802. TERMS AND CONDITIONS OF INSURANCE PROGRAM.

    ``(a) In General.--The Corporation shall establish the terms and 
conditions for the provision of disaster insurance under the disaster 
insurance program of the Corporation, which shall include--
            ``(1) the general terms and conditions of insurance 
        coverage;
            ``(2) limitations on the scope and amounts of coverage 
        provided;
            ``(3) the establishment, under section 804, of appropriate 
        annual premium charges;
            ``(4) appropriate loss deductibles; and
            ``(5) the methods by which proved and approved claims for 
        losses shall be adjusted and paid.
    ``(b) Objectives.--In establishing the terms and conditions under 
this section, the Corporation shall ensure that the insurance program 
accomplishes the following objectives:
            ``(1) Recovery from disasters.--The amount of coverage 
        provided under the program shall be sufficient to provide State 
        participants with amounts adequate for recovery from disasters.
            ``(2) Equitable distribution of risks and costs.--The risks 
        and costs of disasters shall be equitably distributed among the 
        State participants.
            ``(3) Participation.--Participation in the program by all 
        States shall be encouraged.
    ``(c) Assistance.--The terms and conditions of the insurance 
program shall be established in consultation with the Administrator of 
the Federal Emergency Management Agency, the Disaster Insurance 
Advisory Committee under section 826, and other relevant Federal 
agencies and shall be effective only if approved by the Administrator 
and the Advisory Committee.

``SEC. 803. COVERAGE.

    ``(a) In General.--The insurance program shall provide insurance 
coverage under this subtitle for each participant in the Corporation. 
The initial coverage available under the program shall take effect on 
October 1, 2019.
    ``(b) Eligible Insureds.--The insurance program may provide 
insurance coverage only to participants and each State shall be 
eligible to become a participant pursuant to the requirements of 
section 821(d).
    ``(c) Scope of Coverage.--The insurance program may provide 
coverage only for the following losses and costs to a participant that 
arise from a disaster:
            ``(1) Lifesaving measures.--Costs of performing any work or 
        services essential to saving lives and protecting and 
        preserving property or public health and safety, including--
                    ``(A) removing debris and wreckage;
                    ``(B) conducting search and rescue, and providing 
                emergency medical care, emergency mass care, emergency 
                shelter, food, water, medicine, and other essential 
                needs, including movement of supplies or persons;
                    ``(C) clearing roads and constructing temporary 
                bridges necessary to the performance of emergency tasks 
                and essential community services;
                    ``(D) providing temporary facilities for schools 
                and other essential community services;
                    ``(E) demolishing unsafe structures that endanger 
                the public;
                    ``(F) warning of further risks and hazards;
                    ``(G) disseminating of public information and 
                assistance regarding health and safety measures; and
                    ``(H) reducing immediate threats to life, property, 
                and public health and safety.
            ``(2) Distribution of food and medical assistance.--Costs 
        of distributing or rendering food, medicine, and other 
        consumable supplies, and other services and assistance to 
        victims of the disaster.
            ``(3) Coordination.--Costs of coordinating relief efforts.
            ``(4) Technical advice.--Costs of obtaining technical 
        advice regarding--
                    ``(A) disaster management and control;
                    ``(B) performing essential community services; and
                    ``(C) disseminating information regarding public 
                health and safety, issuing warnings of risks and 
                hazards.
            ``(5) Hazard mitigation.--Costs of conducting hazard 
        mitigation measures that the Corporation determines to be cost-
        effective and that will substantially reduce the risk of future 
        damage, hardship, loss, or suffering in any area affected by 
        the disaster.
            ``(6) Repair and replacement of damaged facilities and 
        residences.--Costs for the repair, restoration, reconstruction, 
        or replacement of facilities (including public, private, and 
        private nonprofit facilities, and commercial and agricultural 
        facilities) and residences that are damaged or destroyed by the 
        disaster and for associated expenses incurred by the owners of 
        the facilities and residences, and losses from damage or 
        destruction to such facilities and residences.
            ``(7) Temporary housing.--Costs of providing, by purchase 
        or lease, temporary housing (including unoccupied habitable 
        dwellings), suitable rental housing, mobile homes, or other 
        readily fabricated dwellings to persons who, as a result of the 
        disaster, require temporary housing.
            ``(8) Temporary mortgage and rental payments.--Costs of 
        providing assistance on a temporary basis in the form of 
        mortgage or rental payments to or on behalf of individuals and 
        families who, as a result of financial hardship caused by the 
        disaster, have received written notice of dispossession or 
        eviction from a residence by reason of a foreclosure of any 
        mortgage or lien, cancellation of any contract of sale, or 
        termination of any lease, entered into prior to such disaster, 
        except that such costs may not cover assistance provided for a 
        duration exceeding the period of financial hardship or 18 
        months, whichever is less.
            ``(9) Counseling.--Costs of professional counseling 
        services to victims of the disaster to relieve mental health 
        problems caused or aggravated by the disaster or its aftermath.
            ``(10) Lost revenue.--Loss to a participant of a 
        substantial portion of tax and other revenues, but only if the 
        participant demonstrates a need for reimbursement of such 
        losses to perform its governmental functions.
            ``(11) Temporary communications.--Costs of establishing 
        temporary communications systems in the area affected by the 
        disaster.
            ``(12) Temporary public transportation.--Costs of providing 
        temporary public transportation service in the area affected by 
        the disaster to meet emergency needs and to provide 
        transportation to governmental offices, supply centers, stores, 
        post offices, schools, major employment centers, and such other 
        places as may be necessary in order to enable the community to 
        resume its normal pattern of life as soon as possible.
            ``(13) Fire suppression.--Costs of equipment, supplies, and 
        personnel for the suppression of any fire on publicly or 
        privately owned forest or grassland.
            ``(14) Loan and assistance programs.--Losses and costs 
        associated with providing the following assistance:
                    ``(A) Small business loans.--Loans for--
                            ``(i) the repair, rehabilitation, or 
                        replacement of properties of small business 
                        concerns that are damaged or destroyed as a 
                        result of the disaster;
                            ``(ii) refinancing mortgages or other liens 
                        against residences and properties of small 
                        business concerns that are destroyed or 
                        substantially damaged as a result of the 
                        disaster; and
                            ``(iii) assisting small business concerns 
                        that suffer substantial economic injury as a 
                        result of the disaster.
                    ``(B) Farm loans.--Emergency loans to persons whose 
                farming, ranching, or aquaculture operations have been 
                substantially affected by a disaster.
                    ``(C) Highway repair.--Assistance for the repair or 
                reconstruction of highways, roads, and trails that 
                suffer serious damage as the result of the disaster.
                    ``(D) Insurance of loans for single family homes.--
                Insurance for mortgages and rehabilitation loans for 1- 
                to 4-family residences of mortgagors and borrowers 
                whose residences are destroyed or damaged as a result 
                of the disaster.
            ``(15) Other.--Any other costs or losses sustained in 
        providing disaster relief in the State, that are determined by 
        the Corporation to be appropriate and which are not 
        inconsistent with the provisions of this subtitle.
    ``(d) Prohibited Coverage.--The insurance program may not provide 
coverage for the following losses and costs:
            ``(1) Nondisaster losses.--Any losses or costs not arising 
        from a disaster.
            ``(2) Federal facilities.--Any losses or costs sustained by 
        or relating to Federal facilities.

``SEC. 804. ANNUAL PREMIUM CHARGES.

    ``(a) General Authority.--The Corporation shall require each State, 
as a condition of participation in the Corporation and coverage under 
the insurance program during any fiscal year, to make a premium payment 
to the Corporation for such fiscal year in an amount determined in 
accordance with this section. The Corporation shall annually review the 
premium payments charged to each participant and, if appropriate, 
adjust such payment amounts.
    ``(b) Establishment of Charges.--The premium payments established 
under this section shall be--
            ``(1) established using generally accepted actuarial 
        principles;
            ``(2) to the maximum extent practicable, based on a 
        consideration of the respective risks involved, including 
        differences in--
                    ``(A) the risk of occurrence of disasters;
                    ``(B) hazard mitigation measures in place, 
                including any disaster preparedness plan of the 
                participant for mitigation, warning, emergency 
                operations, rehabilitation, and recovery;
                    ``(C) anticipated covered losses and costs in the 
                event of a disaster; and
                    ``(D) the extent to which other sources of 
                insurance or assistance will cover costs and losses for 
                types of property and activities covered in a State; 
                and
            ``(3) adequate, on the basis of generally accepted 
        actuarial principles, to provide--
                    ``(A) amounts in the reserve account of the 
                Corporation under section 823 for anticipated claims; 
                and
                    ``(B) for any administrative and operating expenses 
                of the Corporation in carrying out the insurance 
                program.
    ``(c) Certification of Premium Charges.--The Corporation may not 
assess any premium charges established under this section before the 
charges have been certified as actuarially sound by the Disaster 
Insurance Advisory Commission established by section 826.
    ``(d) Credit for Initial Contributions.--The Corporation shall 
credit the amount of the payment made by a State pursuant to section 
821(d)(1) toward any premium charges under this section owed by the 
State.
    ``(e) Federal Contribution.--
            ``(1) Credit toward premiums.--For each fiscal year, the 
        amount of the premium charges owed for such fiscal year by each 
        State that is participating in the Corporation and the 
        insurance program under this subtitle shall be reduced by the 
        amount determined for such State under paragraph (2).
            ``(2) Amount.--For a fiscal year, the amount determined 
        under this paragraph for each State that is a participant shall 
        be the amount that bears the same percentage to the full 
        premium charges owed by such State for such fiscal year as the 
        total amount appropriated pursuant to paragraph (3) for such 
        fiscal year bears to the sum of all premium charges owed by all 
        participating States for such fiscal year.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Corporation for each fiscal year an 
        amount equal to 10 percent of the sum of all premium charges 
        owed by all States participating in the Corporation and the 
        insurance program under this subtitle for such fiscal year.

``SEC. 805. CLAIMS.

    ``(a) Procedure.--The Corporation shall adjust and pay all claims 
for proved and approved losses and costs covered by insurance provided 
under this subtitle.
    ``(b) Effect of Duplicative Coverage.--The amount of any claim paid 
for losses or costs under the insurance program may not include any 
amount for any portion of such losses or costs covered by amounts 
provided under any other source of insurance or financial assistance.
    ``(c) Effect of Flood Insurance Coverage.--
            ``(1) Reduction of federal assistance.--If a facility or 
        residence located in a special flood hazard area identified for 
        more than 1 year by the Administrator pursuant to the National 
        Flood Insurance Act of 1968 is damaged or destroyed by flooding 
        in a disaster and such facility or residence is not covered on 
        the date of such flooding by flood insurance, the amount of a 
        claim for coverage under this subtitle which would otherwise be 
        paid under the insurance program under this subtitle for costs 
        of repair, restoration, reconstruction, and replacement of such 
        facility or residence and associated expenses shall be reduced 
        in accordance with paragraph (2).
            ``(2) Amount of reduction.--The amount of the reduction in 
        a claim for a facility or residence pursuant to paragraph (1) 
        shall be the lesser of--
                    ``(A) the value of such facility or residence on 
                the date of the flood damage or destruction; or
                    ``(B) the maximum amount of insurance proceeds 
                which would have been payable with respect to such 
                facility or residence if such facility had been covered 
                by flood insurance under the National Flood Insurance 
                Act of 1968 on such date.
            ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        a private nonprofit facility or residence that is not covered 
        by flood insurance solely because of the local government's 
        failure to participate in the flood insurance program under the 
        National Flood Insurance Act of 1968.
    ``(d) Cause of Action.--If the Corporation disallows a claim or the 
claimant refuses to accept the amount allowed upon any claim, the 
claimant may, before the expiration of the 1-year period beginning upon 
the claimant's receipt of written notice of the disallowance or partial 
disallowance of the claim, institute an action on such claim against 
the Corporation in the United States District Court for the District of 
Columbia. Original exclusive jurisdiction is hereby conferred upon such 
Court to hear and determine such action without regard to the amount in 
controversy.

  ``Subtitle B--National Disaster Insurance Corporation and Disaster 
                     Insurance Advisory Commission

``SEC. 821. NATIONAL DISASTER INSURANCE CORPORATION.

    ``(a) Establishment.--There is authorized to be established a body 
corporate to be known as the National Disaster Insurance Corporation, 
which shall be subject to the provisions of this title. The Corporation 
shall not be an agency or establishment of the Federal Government. The 
principal office of the Corporation shall be located in the District of 
Columbia or the metropolitan area thereof.
    ``(b) Function.--The purpose of the Corporation shall be to carry 
out the insurance program under subtitle A.
    ``(c) Governance.--
            ``(1) Board of directors.--The Corporation shall be under 
        the direction of a board of directors who shall be elected by 
        the participants in the Corporation. Members of the board shall 
        not be considered, by reason of such membership, to be 
        employees of the Federal Government.
            ``(2) Initial board.--Except as otherwise provided by the 
        Corporation pursuant to section 822(2)--
                    ``(A) the board shall be composed of 7 members, 
                selected by a majority of the participants in the 
                Corporation through an election (i) that shall take 
                place at the initial organizational meeting of the 
                Corporation held pursuant to subsection (e)(1), and 
                (ii) in which each of the participants shall have 1 
                vote; and
                    ``(B) the term of each member of the board shall be 
                5 years.
    ``(d) Participants.--A State shall be considered as a participant 
in the Corporation for purposes of this title only if the State 
complies with the following requirements:
            ``(1) Initial contribution.--The State has made a payment 
        to the Corporation (or to the Administrator pursuant to 
        subsection (e)(2)) in an amount equal to 1 percent of the 
        aggregate amount of Federal financial assistance provided, 
        during fiscal years 2009 through 2018, to the State (or to or 
        on behalf of persons or property located in the State) for 
        disaster relief relating to a major disaster or emergency 
        declared under this Act, as determined by the Administrator. 
        For purposes of this paragraph, the term `Federal financial 
        assistance' shall include any grant, payment, subsidy, or loan 
        provided by any agency of the Federal Government, and the 
        amount of assistance provided under a loan shall be considered 
        to be an amount equal to the principal obligation under the 
        loan.
            ``(2) Payment of premium charges.--The State has paid any 
        premium charges assessed for such State pursuant to section 
        804, in accordance with the requirements established by the 
        Corporation for payment of such charges.
For purposes of the organizational meeting under subsection (e)(1), any 
State that complies with paragraph (1) of this subsection shall be 
considered as a participant.
    ``(e) Initial Organization.--
            ``(1) Organizational meeting.--The Administrator shall call 
        an organizational meeting for the Corporation to be held not 
        later than August 31, 2019, at which the participants shall 
        elect the initial members of the board of directors and shall 
        take such other actions as may be necessary to establish the 
        Corporation in accordance with this title. The Administrator 
        shall notify each State of the meeting and the purposes of the 
        meeting and shall organize and chair the meeting.
            ``(2) Collection of initial contributions.--Before the 
        organization of the Corporation pursuant to paragraph (1), the 
        Administrator shall collect payments under subsection (d)(1) on 
        behalf of the Corporation.
    ``(f) Ownership.--The Corporation shall be privately owned by the 
participants in the insurance program. Obligations and indebtedness of 
the Corporation shall not be considered obligations and indebtedness of 
the Federal Government or guaranteed by the Federal Government.
    ``(g) Officers and Employees.--The Corporation may appoint and hire 
officers and employees at the discretion of the Corporation, but may 
not pay any officer or employee at a rate exceeding the rate of basic 
pay payable for level IV of the Executive Schedule. Any such officers 
and employees shall not be considered officers or employees of the 
Federal Government and shall not be subject to the provisions of title 
5, United States Code.
    ``(h) Powers.--The Corporation shall have the power--
            ``(1) to adopt, alter, and use a corporate seal;
            ``(2) to make and enforce contracts and agreements 
        appropriate to carry out this title;
            ``(3) to settle, adjust, compromise, and release claims 
        against the corporation;
            ``(4) to sue and be sued;
            ``(5) to acquire, hold, and own, and deal with and dispose 
        of real and personal property to the extent appropriate to 
        carry out this title;
            ``(6) to have succession until dissolved by an Act of 
        Congress; and
            ``(7) to exercise all other lawful powers necessary or 
        appropriate to carry out this title.

``SEC. 822. STRUCTURE AND OPERATIONS.

    ``After consultation with the Administrator and other appropriate 
Federal agencies, the Corporation shall establish appropriate 
guidelines for the structure and operation of the Corporation and the 
insurance program, which--
            ``(1) shall include standards relating to the vacancies, 
        bylaws, and powers of the board;
            ``(2) may include provisions, applicable only after October 
        1, 2019, establishing the composition of the board and the 
        terms of office of the members of the board other than as 
        provided for in section 821(c)(2); and
            ``(3) shall include a minimum capital requirement pursuant 
        to section 823(d).

``SEC. 823. RESERVE ACCOUNT.

    ``(a) Establishment.--The Corporation shall establish and manage a 
reserve account for the operation of the insurance program.
    ``(b) Credits.--The reserve account of the Corporation shall be 
credited with--
            ``(1) any premium charges under section 804 collected by 
        the Corporation;
            ``(2) any amounts appropriated for the Corporation pursuant 
        to sections 804(e)(3) and 825(a); and
            ``(3) any interest earned on investments of the Corporation 
        pursuant to subsection (c)(2).
    ``(c) Use.--Amounts in the reserve account of the Corporation shall 
be available--
            ``(1) for payment of qualifying claims under the insurance 
        program of participants, consistent with the terms and 
        conditions established under section 802(a);
            ``(2) to the extent that the Corporation determines that 
        such amounts are in excess of current needs and the amount 
        required to be held in the reserve account pursuant to 
        subsection (d), for investment as the Corporation considers 
        appropriate;
            ``(3) for covering the costs of the Corporation and 
        administering and operating the insurance program; and
            ``(4) for covering travel expenses of members of the 
        Disaster Insurance Advisory Commission established by section 
        826.
    ``(d) Minimum Capital Requirement.--
            ``(1) In general.--The Corporation shall at all times 
        maintain amounts in the reserve account equal to or in excess 
        of the applicable minimum capital level determined under 
        paragraph (2).
            ``(2) Establishment of capital levels.--The Corporation 
        shall establish a series of minimum capital levels appropriate 
        to ensure sufficient capitalization of the Corporation based on 
        the nature and extent of the underwriting, investment, and 
        other risks assumed by the Corporation. The capital levels 
        shall not be effective unless approved by the Administrator.
    ``(e) Tax-Exempt Status.--Any amounts deposited in the reserve 
account, including income derived from the investment of amounts under 
subsection (c)(2), shall be exempt from all taxation now or hereafter 
imposed by the United States, or by any State, county, municipality, or 
local taxing authority.

``SEC. 824. BORROWING AUTHORITY.

    ``(a) In General.--To the extent that the amounts in the reserve 
fund are insufficient to pay claims and expenses of the Corporation and 
maintain amounts in accordance with the requirements under section 
823(d), the Corporation may issue to the Secretary of the Treasury 
notes and other obligations to cover the insufficiency.
    ``(b) Terms of Borrowing.--The Secretary may purchase obligations 
issued under subsection (a) only if the President determines that the 
financial condition of the Corporation is adequate to ensure repayment 
of the obligations. Such obligations shall have terms and conditions as 
determined by the Secretary of the Treasury.

``SEC. 825. INITIAL FEDERAL CONTRIBUTION AND PROHIBITION OF ADDITIONAL 
              FEDERAL ASSISTANCE.

    ``(a) Authorization of Appropriations.--For purposes of carrying 
out this title, there is authorized to be appropriated to the 
Corporation an amount equal to the difference between--
            ``(1) the sum of any balances remaining, at the end of 
        September 30, 2019, in the Disaster Relief appropriation and 
        the Disaster Assistance Direct Loan Program Account of the 
        Federal Emergency Management Agency; and
            ``(2) the amounts determined by the Administrator to be 
        necessary to reserve from such appropriation and in such 
        Account,
for purposes of providing assistance pursuant to any major disaster or 
emergency that commences or occurs (or is declared or determined to 
have commenced or occurred) on or before September 30, 2019.
    ``(b) Prohibition of Federal Assistance.--Except as provided in 
subsection (a), section 804(e), and section 824, no Federal funds may 
be authorized, appropriated, or used to fund any activity of the 
Corporation.

``SEC. 826. DISASTER INSURANCE ADVISORY COMMISSION.

    ``(a) Establishment.--There is hereby established a commission to 
be known as the Disaster Insurance Advisory Commission (in this section 
referred to as the `Commission').
    ``(b) Membership.--
            ``(1) Appointment.--The Commission shall be composed of 11 
        members appointed by the President, in consultation with the 
        Administrator. Of the members of the Commission, not less than 
        6 shall be individuals who have been nominated for such 
        appointment by States that are participants in the Corporation, 
        except that (to the extent possible) not more than one such 
        member may be appointed to the Commission pursuant to the 
        nomination of any single State. Each member of the Commission 
        shall have experience or expertise in at least one of the areas 
        described in subparagraphs (A) through (D) of paragraph (2).
            ``(2) Expertise.--The membership of the Commission shall, 
        at all times, include--
                    ``(A) not less than 1 individual who has experience 
                or expertise in actuarial issues relating to disaster 
                insurance;
                    ``(B) not less than 1 individual who has experience 
                or expertise in the management of insurance companies;
                    ``(C) not less than 1 individual who has experience 
                or expertise in the regulation of insurance companies; 
                and
                    ``(D) not less than 1 individual who has experience 
                or expertise in disaster relief.
            ``(3) Terms.--
                    ``(A) In general.--Each member of the Commission 
                shall be appointed for a term of 4 years, except as 
                provided in subparagraph (B).
                    ``(B) Initial appointees.--As designated by the 
                President at the time of appointment, of the members 
                first appointed to the Commission--
                            ``(i) 5 shall be appointed for terms of 6 
                        years; and
                            ``(ii) 6 shall be appointed for terms of 4 
                        years.
            ``(4) Chairperson.--The President shall designate a 
        chairperson of the Commission from among members appointed to 
        the Commission.
    ``(c) Prohibition of Pay.--Members of the Commission shall serve 
without pay.
    ``(d) Travel Expenses.--Each member of the Commission shall receive 
travel expenses, including per diem in lieu of subsistence, in 
accordance with sections 5702 and 5703 of title 5, United States Code, 
except that such expenses shall be paid by the Corporation.
    ``(e) Duties.--The Commission shall--
            ``(1) in coordination with the Administrator, assist the 
        Corporation in establishing the terms and conditions of the 
        insurance program under subtitle A, review such terms and 
        conditions, and approve or disapprove such terms and conditions 
        as appropriate to carry out this title; and
            ``(2) review the annual premium charges established under 
        section 804 by the Corporation to determine whether such 
        charges are established in compliance with the requirements of 
        such section, and if so, certify such compliance to the 
        Corporation.
    ``(f) Continuation.--Section 14(a)(2)(B) of the Federal Advisory 
Committee Act (5 U.S.C. App.; relating to the termination of advisory 
committees) shall not apply to the Commission.

``SEC. 827. GAO AUDIT.

    ``(a) Initial Audit.--As soon as practicable after October 1, 2019, 
the Comptroller General of the United States shall audit the activities 
of the Corporation and the Disaster Insurance Advisory Commission 
established by section 826 to ensure that such entities are complying 
with the provisions of this title.
    ``(b) Successive Audits.--After the completion of the audit 
described in subsection (a), the Comptroller General shall conduct 
similar audits not less than once every 3 years.
    ``(c) Reports.--The Comptroller General shall submit reports of the 
audits performed under this section to the Congress.

                    ``Subtitle C--General Provisions

``SEC. 851. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Board.--The term `board' means the board of directors 
        of the Corporation.
            ``(2) Corporation.--The term `Corporation' means the 
        National Disaster Insurance Corporation.
            ``(3) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Emergency Management Agency.
            ``(4) Disaster.--The term `disaster' means any natural 
        catastrophe (including any hurricane, tornado, storm, high 
        water, winddriven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, or drought), 
        or, regardless of cause, any fire, flood, serious accident, or 
        explosion, in or affecting any State or part of a State.
            ``(5) Insurance program.--The term `insurance program' 
        means the program established under this title by the 
        Corporation for disaster insurance coverage.''.

    TITLE II--FEDERAL PROGRAM FOR REIMBURSABLE DISASTER RELIEF AND 
                          EMERGENCY ASSISTANCE

SEC. 201. FINDINGS AND DECLARATIONS.

    (a) Findings.--Section 101(a) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 note) is amended by 
striking ``The'' and inserting ``Findings.--Recognizing the importance 
of reducing the Federal deficit and allowing the individual States to 
regain responsibility for management of activities within their 
borders, the''.
    (b) Declarations.--Section 101(b) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 note) is 
amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``an orderly'' and all that follows 
                through ``their'' and inserting ``a mechanism which 
                will allow affected States to carry out their''; and
                    (B) by striking ``such'';
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) establishing a private corporation which will make 
        available insurance to assist the States in meeting their 
        responsibilities for disaster relief;'';
            (4) in paragraph (2) (as so redesignated) by striking ``and 
        broadening'';
            (5) in paragraph (5) (as so redesignated) by striking 
        ``supplement or''; and
            (6) in paragraph (7) (as so redesignated) by inserting 
        ``reimbursable'' before ``assistance''.

SEC. 202. WAIVER OF ADMINISTRATIVE CONDITIONS.

    Section 301 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5141) is amended by striking ``Any'' and 
inserting ``Except as otherwise provided in this title, any''.

SEC. 203. EMERGENCY SUPPORT TEAMS.

    Section 303(a) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5144(a)) is amended by striking 
``on either'' and all that follows through ``President,''.

SEC. 204. REIMBURSEMENT.

    Section 304 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5147) is amended by striking the first 
sentence and inserting the following: ``Federal agencies shall be 
reimbursed for expenditures made under this Act with respect to a major 
disaster or emergency by the State or States affected by the disaster 
or emergency.''.

SEC. 205. PERFORMANCE OF SERVICES.

    Section 306 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5149) is amended--
            (1) in subsection (b) by striking ``In performing any 
        services under this Act,'' and inserting ``Subject to 
        subsection (c), in performing any services under this Act with 
        respect to a major disaster or emergency''; and
            (2) by adding at the end the following:
    ``(c) Reimbursement Agreement.--A Federal agency may only incur 
costs with respect to compensation, employment, or obligations under 
subsection (b) in connection with a disaster or emergency if the 
Federal Government has entered into an agreement with the State or 
States affected by the major disaster or emergency for reimbursement of 
all such costs.''.

SEC. 206. REIMBURSEMENT AGREEMENTS AND CONDITIONS.

    Section 311 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5154) is amended to read as follows:

``SEC. 311. REIMBURSEMENT AGREEMENTS AND CONDITIONS.

    ``(a) Repayment.--Assistance may only be provided under this Act 
with respect to damage caused by a major disaster or emergency within 
the borders of a State if a State has agreed to reimburse the United 
States for all expenses incurred by the United States in providing such 
assistance. Such assistance, including a loan or advance made under 
section 319, shall be repaid to the United States.
    ``(b) Interest.--Assistance provided under this Act with respect to 
which a State agrees to reimburse the United States for all expenses 
incurred in providing such assistance, including loans and advances 
made under this Act, shall bear interest at a rate determined by the 
Secretary of the Treasury, taking into consideration the current market 
yields on outstanding marketable obligations of the United States with 
remaining periods of maturity comparable to the reimbursement period of 
the reimbursable assistance provided.
    ``(c) Regulations.--The President shall issue regulations 
describing the terms and conditions under which any reimbursable 
assistance, loan, or advance authorized by this Act may be provided.''.

SEC. 207. TREATMENT OF ASSISTANCE.

    Section 312 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5155) is amended to read as follows:

``SEC. 312. TREATMENT OF ASSISTANCE.

    ``Federal major disaster and emergency assistance provided to 
individuals and families under this Act, and comparable disaster 
assistance provided by States, local governments, and disaster 
assistance organizations, shall not be considered as income or a 
resource when determining eligibility for or benefit levels under 
federally funded income assistance or resource-tested benefit 
programs.''.

SEC. 208. LIABILITY.

    Section 317 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5160) is repealed.

SEC. 209. ADVANCE OF STATE EXPENDITURES.

    Section 319 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5162) is amended to read as follows:

``SEC. 319. ADVANCE OF STATE EXPENDITURES.

    ``The President may lend or advance to a State assistance for which 
the State is responsible under section 403 of this Act in any case in 
which the President determines that--
            ``(1) the damages caused by a major disaster are so 
        overwhelming and severe that it is not possible for the State 
        to assume immediately its financial responsibility under this 
        Act; and
            ``(2) the State has the ability to repay any such loans or 
        advances.''.

SEC. 210. PROCEDURE FOR DECLARATION OF MAJOR DISASTER.

    Section 401(a) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170(a)) is amended--
            (1) in the second sentence by inserting ``reimbursable'' 
        after ``Federal'';
            (2) in the third sentence by inserting before the period at 
        the end ``and shall enter into an agreement to reimburse the 
        United States for all expenses incurred in providing assistance 
        under this Act with respect to the disaster''; and
            (3) in the fourth sentence by striking ``cost-sharing''.

SEC. 211. GENERAL FEDERAL DISASTER ASSISTANCE.

    Section 402 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170a) is amended--
            (1) by striking ``In'' and inserting ``(a) General 
        Authority.--Subject to subsection (b), in'';
            (2) by striking ``, with or without reimbursement,''; and
            (3) by adding at the end the following:
    ``(b) Reimbursement Agreement.--Assistance may only be provided 
under this section if the affected State agrees to reimburse the United 
States for all expenses incurred in providing such assistance.''.

SEC. 212. ESSENTIAL DISASTER ASSISTANCE.

    Section 403 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170b) is amended--
            (1) in subsection (a) by striking ``Federal agencies'' and 
        inserting ``Subject to subsection (b), Federal agencies'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Reimbursement Agreement.--Assistance may only be provided 
under this section if the affected State agrees to reimburse the United 
States for all expenses incurred in providing such assistance.''; and
            (3) in subsection (c)--
                    (A) in paragraph (3) by striking ``out of funds 
                made available to carry out this Act'' and inserting 
                ``by the State'';
                    (B) by striking paragraph (4);
                    (C) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively; and
                    (D) in paragraph (4) (as so redesignated) by 
                striking ``Not later than'' and all that follows 
                through ``1988, the'' and inserting ``The''.

SEC. 213. HAZARD MITIGATION.

    Section 404 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170c) is repealed.

SEC. 214. REPAIR, RESTORATION, AND REPLACEMENT OF DAMAGED FACILITIES.

    Section 406 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5172) is amended to read as follows:

``SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF DAMAGED FACILITIES.

    ``The President may provide assistance to a State--
            ``(1) for the repair, restoration, reconstruction, or 
        replacement of a public facility which is damaged or destroyed 
        by a major disaster and for associated expenses incurred by the 
        State or a local government thereof; or
            ``(2) for the repair, restoration, reconstruction, or 
        replacement of a private nonprofit facility damaged or 
        destroyed by a major disaster and for associated expenses 
        incurred by the owner or operator of such facility,
if the State agrees to reimburse the United States for all expenses 
incurred in providing such assistance.''.

SEC. 215. DEBRIS REMOVAL.

    Section 407 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5173) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``public interest,'' and inserting ``public 
                interest and if the State agrees to reimburse the 
                United States for all expenses incurred in providing 
                assistance under this subsection,''; and
                    (B) in paragraph (2) by striking ``make grants'' 
                and all that follows through ``facility'' and inserting 
                ``provide assistance to any State'';
            (2) in subsection (b) by striking ``or local government''; 
        and
            (3) by striking subsection (d).

SEC. 216. TEMPORARY HOUSING ASSISTANCE.

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

``SEC. 408. TEMPORARY HOUSING ASSISTANCE.

    ``(a) Provision of Temporary Housing.--The President may provide 
assistance to a State for the provision of temporary housing (including 
unoccupied habitable dwellings), suitable rental housing, mobile homes, 
or other readily fabricated dwellings to persons who, as a result of a 
major disaster, require temporary housing if the State agrees to 
reimburse the United States for all expenses incurred in providing such 
assistance.
    ``(b) Mobile Home Site.--
            ``(1) In general.--Any mobile home or other readily 
        fabricated dwelling provided under this section shall whenever 
        possible be located on a site which--
                    ``(A) is provided by the State or a local 
                government; and
                    ``(B) has utilities provided by the State or a 
                local government, by the owner of the site, or by the 
                occupant who was displaced by the major disaster.
            ``(2) Other sites.--Mobile homes and other readily 
        fabricated dwellings may be located on sites provided by the 
        President if the President determines that such sites would be 
        more economical or accessible than sites described in paragraph 
        (1).''.

SEC. 217. UNEMPLOYMENT ASSISTANCE.

    Section 410 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5177) is amended--
            (1) in subsection (a) by inserting before the period at the 
        end ``and ensure that the United States will be reimbursed by 
        the States for all expenses incurred in providing assistance 
        under this subsection''; and
            (2) in subsection (b)(2) by inserting before the period at 
        the end ``if the State agrees to reimburse the United States 
        for all expenses incurred in providing such assistance''.

SEC. 218. CRISIS COUNSELING ASSISTANCE AND TRAINING.

    Section 416 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5183) is amended--
            (1) by striking ``or local agencies or private mental 
        health organizations to provide'' and inserting ``agencies to 
        provide (or to contract with local agencies or private mental 
        health organizations for the provision of)''; and
            (2) by inserting before the period at the end ``if the 
        State agrees to reimburse the United States for all expenses 
        incurred in providing such services and assistance''.

SEC. 219. COMMUNITY DISASTER LOANS.

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

SEC. 220. EMERGENCY COMMUNICATIONS.

    Section 418 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5185) is amended by inserting before the 
period at the end ``if the State agrees to reimburse the United States 
for all expenses incurred in providing assistance under this section''.

SEC. 221. EMERGENCY PUBLIC TRANSPORTATION.

    Section 419 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5186) is amended by inserting before the 
period at the end ``if the State agrees to reimburse the United States 
for all expenses incurred in providing assistance under this section''.

SEC. 222. FIRE SUPPRESSION.

    Section 420(a) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5187(a)) is amended--
            (1) by striking ``including grants,''; and
            (2) by inserting before the period at the end ``if the 
        State agrees to reimburse the United States for all expenses 
        incurred in providing assistance under this section''.

SEC. 223. TIMBER SALE CONTRACTS.

    Section 421(d) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5188(d)) is amended--
            (1) by striking ``make grants to any State or local 
        government'' and inserting ``provide financial assistance to 
        any State'';
            (2) by inserting after ``major disaster'' the following: 
        ``if the State agrees to reimburse the United States for all 
        expenses incurred in providing such assistance'';
            (3) by striking ``or local government is'' and inserting 
        ``is''; and
            (4) by striking ``such grants'' and inserting 
        ``assistance''.

SEC. 224. SIMPLIFIED PROCEDURE.

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

SEC. 225. APPEALS OF ASSISTANCE DECISIONS.

    Section 423 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5189a) is repealed.

SEC. 226. PROCEDURE FOR DECLARATION.

    Section 501 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5191) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``reimbursable'' after ``Federal'' 
                the first place it appears; and
                    (B) by inserting ``and shall enter into an 
                agreement to reimburse the United States for all 
                expenses incurred in providing assistance under this 
                Act with respect to the emergency'' before the period 
                at the end of the third sentence; and
            (2) in subsection (b) by striking ``or section 503''.

SEC. 227. FEDERAL EMERGENCY ASSISTANCE.

    Section 502 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5192) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``In'' and inserting ``Subject to subsection 
                (d), in''; and
                    (B) in paragraph (1) by striking ``, with or 
                without reimbursement,'';
            (2) in subsection (b) by striking ``Whenever'' and 
        inserting ``Subject to subsection (d), whenever''; and
            (3) by adding at the end the following:
    ``(d) Reimbursement Agreement.--Assistance may only be provided 
under this section if the affected State agrees to reimburse the United 
States for all expenses incurred in providing such assistance.''.

SEC. 228. AMOUNT OF ASSISTANCE.

    Section 503 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5193) is repealed.

SEC. 229. APPLICABILITY.

    (a) Effective Date of Amendments.--The amendments under this title 
shall be made on October 1, 2019, and shall apply on and after such 
date, except to the extent provided in subsection (b).
    (b) Inapplicability to Disasters Declared Before Effective Date.--
The provisions of law amended by this title, as in effect on the day 
before the date referred to in subsection (a), shall continue to apply 
with respect to any major disaster or emergency that commences or 
occurs (or is declared or determined to have commenced or occurred) 
before the date referred in subsection (a).

                    TITLE III--FEDERAL-AID HIGHWAYS

SEC. 301. NATIONAL STANDARD FOR STATE PARTICIPATION IN DISASTER 
              INSURANCE PROGRAM.

    (a) Withholding of Apportionments for Noncompliance.--Chapter 1 of 
title 23, United States Code, is amended by adding at the end the 
following:
``Sec. 171. National standard for State participation in disaster 
              insurance program
    ``(a) Withholding of Apportionments for Noncompliance.--The 
Secretary shall withhold an amount equal to 10 percent of the amount 
required to be apportioned to a State under each of paragraphs (1) and 
(2) of section 104(b) on October 1, 2021, and on October 1 of each 
fiscal year thereafter, if the State does not meet the requirement of 
subsection (b) on that date.
    ``(b) Requirement.--A State meets the requirement of this 
subsection if the State is a participant in the National Disaster 
Insurance Corporation, as determined pursuant to section 821(d) of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.).
    ``(c) Effect of Noncompliance.--No funds withheld under this 
section from apportionment to a State shall be available for 
apportionment to the State.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following:

``171. National standard for State participation in disaster insurance 
                            program.''.

SEC. 302. EMERGENCY RELIEF PROGRAM FOR REPAIR OF HIGHWAYS.

    (a) Condition on Receipt of Assistance.--Section 125 of title 23, 
United States Code, is amended by adding at the end the following:
    ``(h) Reimbursement Agreements.--Assistance may only be provided to 
a State under this section if the State agrees to reimburse the United 
States for all expenses incurred in providing such assistance. There 
are hereby appropriated to the Highway Trust Fund amounts equivalent to 
reimbursements received pursuant to this subsection.''.
    (b) Effective Date.--The amendment under subsection (a) shall be 
made on October 1, 2019, and shall apply on and after such date, except 
to the extent provided in subsection (c).
    (c) Inapplicability to Disasters and Emergencies Declared Before 
Effective Date.--Section 125 of title 23, United States Code, as in 
effect on the day before the date referred to in subsection (b), shall 
continue to apply with respect to any disaster or emergency that 
commences or occurs (or is declared or determined to have commenced or 
occurred) before the date referred in subsection (b).
                                 <all>