[Congressional Record Volume 143, Number 97 (Thursday, July 10, 1997)]
[Senate]
[Pages S7210-S7217]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ROBERT J. DOLE UNITED STATES COURTHOUSE
Mr. ROBERTS. Mr. President, I have the great pleasure of introducing
legislation, along with my colleague, Senator Brownback, to name the
U.S. Courthouse at 500 State Avenue in Kansas City, KS, as the Robert
J. Dole U.S. Courthouse. I think all of our colleagues know that
although our esteemed former colleague has received scores of honors, I
am pleased to lead the Kansas congressional delegation in naming this
courthouse after Bob because it reflects his common sense and honest
work in the U.S. Senate not only nationally but also in regard to
Kansas.
Senator Dole's career on behalf of the State of Kansas is well-
known--State Representative, Russell County attorney, Congressman of
Kansas' big First Congressional District from 1961 to 1969, and Senator
from 1969 to 1996. When Senator Dole stepped down from the Senate last
year as Kansas' great senior Senator and longest-serving Republican
majority leader, he showed determination and courage in his all-out
effort to win the 1996 Presidential election.
Although being majority leader cast Senator Dole as a national
political figure, forcing him to tackle every single issue before the
Congress, he never stopped his tireless work on behalf of Kansans in
all 105 counties. There was no inside the beltway for Bob Dole; it was
inside the Sunflower State. If you travel into any Kansas community, be
it Wichita or Wakeeney and ask a resident about Bob Dole, they will
easily recall his care about their concerns. Kansans will tell you of
getting the Social Security check delivered quicker or inserting some
provision in legislation for a public works project that made a lot of
sense and was a taxpayer investment. Whenever national disasters
struck, Kansas Senator Dole also alerted the appropriate Federal
disaster relief officials and personally tried to alleviate the
emotional and the physical damage from tornadoes, droughts and floods.
Throughout Kansas, Senator Dole was always available. He listened and
learned from farmers, soccer moms, businessmen, and children. The
issues were as diverse as Kansas itself-- economic development needs of
our State urban areas like Kansas City, or a farmer's desire for higher
grain prices and safer roads for drivers and transportation.
Mr. President, the Federal courthouse at 500 State Avenue in Kansas
City, KS, is an example of Senator Dole's leadership in Kansas. He,
with the support of a bipartisan group of local elected officials and
community leaders, succeeded in keeping the courthouse in downtown
Kansas City, KS. Now, this Federal presence has served to revitalize
the neighborhoods. In fact, on Tuesday, another key component of his
interest in Kansas City, KS, to this development effort was
[[Page S7211]]
started through the groundbreaking of the new Federal building across
the street from the courthouse to house the EPA region VII offices.
This was very typical of Bob Dole. He reached out to local Democrats,
Republicans, and Independents. No matter that Senator Dole was a
Republican, Kansas City, KS, and Wyandotte County Democrats deeply
appreciated his efforts not only on the Federal courthouse but on other
matters such as the Federal response to the flood of 1993.
Realizing that the former Federal courthouse would be vacated for the
new courthouse and would become excess Federal property, Senator Dole
worked with local officials and the GSA to ensure that the former
courthouse would be transferred to Wyandotte County so they could use
it for additional judicial space. This saved Wyandotte County and the
taxpayer a great deal of money.
This U.S. courthouse represents the State of Kansas' efficient use of
land and labor. The building was designed in a contemporary judicial
style and is intended to be a model for future Federal court buildings.
As part of this style, cost savings features were used such as precast
concrete instead of a natural stone facade, combined with energy
efficient double-glazed aluminum frame windows. It is clear that
Senator Dole's perseverance to reduce our Federal spending was applied
in this courthouse. This design reduced costs and increased efficiency
unlike other Federal courthouses that have Cadillac courtrooms and
exceeded their budgets.
Mr. President, this Federal courthouse has 165,000 square feet of
office space. I am proud to let my colleagues know that its budget was
$40,868,000. But the finished cost was $34 million. That is right, a
Federal project was actually finished for less than its budget, $6.7
million to be exact. While the primary role for this building is for
the Federal judicial process, other agencies such as the U.S. Marshal,
the Peace Corps and Congressman Vince Snowbarger, also utilize this
office space in the courthouse.
Mr. President, Senator Brownback joins me in asking that the
Environmental and Public Works Committee act expeditiously on this bill
before the August recess.
I ask unanimous consent to have the bill printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
S. 1000
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DESIGNATION OF ROBERT J. DOLE UNITED STATES
COURTHOUSE
The United States courthouse at 500 State Avenue in Kansas
City, Kansas, shall be known and designated as the ``Robert
J. Dole United States Courthouse''.
SEC. 2. REFERENCES.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the United States
courthouse referred to in section 1 shall be deemed to be a
reference to the ``Robert J. Dole United States Courthouse''.
Mr. THURMOND. Mr. President, I thank the able Senator from Kansas.
The name of the courthouse for Bob Dole is purely a Kansas matter, but
I just want to say that no finer person in the United States deserves a
courthouse or any other building named for him than Bob Dole. He is a
great American. He has rendered this country great service. He was an
outstanding leader here in the Senate for many years. We are all proud
of him and we will be delighted to have a courthouse named for him.
______
By Mr. SMITH of New Hampshire (for himself and Mr. Gregg):
S. 1001. A bill to amend title 31, United States Code, to address the
failure to appropriate sufficient funds to make full payments in lieu
of taxes under chapter 69, of that title by exempting certain users of
the National Forest System from fees imposed in connection with the
use; to the Committee on Agriculture, Nutrition, and Forestry.
the local forest user fairness act
Mr. SMITH of New Hampshire. Mr. President, I take the floor today to
introduce the Local Forest User Fairness Act with my colleague Senator
Gregg. This legislation would allow residents of counties where U.S.
Forest Service land is situated to recreate in the forest without
paying a user fee. The introduction of this bill was prompted by the
recent institution of recreational user fees in certain national
forests across the country, one of those being the White Mountain
National Forest in New Hampshire.
While I am not opposed to user fees per se, I do have some concerns
in this instance because of the potential for double taxation and
inequitable treatment for local residents. Those areas where the
Federal Government owns much of the land suffer from a diminished
property tax base to fund schools and other necessary social needs. To
address this inequity, Congress passed the Payments in Lieu of Taxes,
or PILT, program in 1976 which partially reimburses local units of
government for their loss of property tax revenue due to the U.S.
Forest Service's ownership of local land. Unfortunately, this program
has not been fully funded for a number of years.
This bill provides that until the PILT program is fully funded to its
authorized level, local residents recreating in the forest would be
exempt from paying user fees. In New Hampshire, this would apply to all
residents of Coos, Grafton, and Carroll Counties. For these areas, the
shortfall in PILT payments for fiscal year 1996 was nearly $250,000,
providing only 68 percent of what was owed to them. Because of this
shortfall, county and municipal governments are forced to find much
needed revenue elsewhere, including increased property taxes. It is
simply unfair to charge these communities with using the White
Mountains when they are already subsidizing the forest.
I believe the Local Forest User Fairness Act provides for a
reasonable, fair way of dealing with this inequity. Our proposed
exemption would not be necessary, of course, if the Federal Government
were to fully fund the PILT program and provide adequate funding for
Forest Service management--initiatives that I strongly support.
In conclusion, Mr. President, I want to commend my other New
Hampshire colleague, Congressman Bass, for developing and introducing
this legislation in the House. Together, I hope we can establish a more
equitable situation for our constituents who live, work, and play in or
near our national forests. I now ask unanimous consent that a copy of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1001
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 ``Local Forest User Fairness
Act''.
SEC. 2. LOCAL EXEMPTIONS FROM FOREST SERVICE USER FEES DUE TO
LESS THAN FULL FUNDING OF PAYMENTS IN LIEU OF
TAXES.
(a) Findings.--Congress finds that--
(1) the Federal Government provides payments in lieu of
taxes under chapter 69 of title 31, United States Code, to
compensate units of general local government whose tax base
is diminished by Federal ownership of lands, including
Federal lands in the National Forest System administered by
the Forest Service;
(2) amounts appropriated to provide payments in lieu of
taxes under that chapter have been significantly less than
the amounts necessary to comply fully with the payment
formulas contained in that chapter; and
(3) by failing to fully fund payments in lieu of taxes to
units of general local government whose jurisdictions contain
Federal lands, including National Forest System lands, the
Federal Government is increasing the tax burden on local
property owners.
(b) National Forest User Fee Exemption.--Section 6906 of
title 31, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before
``Necessary''; and
(2) by adding at the end the following:
``(b) Local Exemptions From User Fees Due to Insufficient
Appropriations.--
``(1) In general.--Unless sufficient funds are appropriated
for a fiscal year to provide full payments under this chapter
to each unit of general local government eligible for the
payments, persons residing within the boundaries of that unit
of general local government shall be exempt during that
fiscal year from any recreational user fees imposed by the
Secretary of Agriculture for access to units of the National
Forest System that lie, in whole or in part, within the
boundaries.
``(2) Administration.--The Secretary of Agriculture shall
establish a method for identifying and exempting persons
covered by this subsection from the user fees.''.
______
By Mr. GRASSLEY (for himself, Mr. D'Amato, Mrs. Feinstein, Mr.
Hutchinson, Mr. Graham, Mr. Hagel, Mr. Stevens, Mr. Thurmond
and Mr. Faircloth):
[[Page S7212]]
S. 1003. A bill to amend chapter 53 of title 31, United States Code,
to require the development and implementation by the Secretary of the
Treasury of a national money laundering and related financial crimes
strategy to combat money laundering and related financial crimes, and
for other purposes; to the Committee on Banking, Housing, and Urban
Affairs.
THE MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY ACT OF 1997
Mr. GRASSLEY. Mr. President, we must be sure that we are taking the
necessary steps to protect the citizens of our nation by preventing
drug traffickers, organized crime and terrorist groups from obtaining
the profits of their illegal activities. Much has been done and said
about the movement of illegal drugs into the United States or
terrorists acts against our country. But the opposite side of the
business--getting the profits from drug sales and other illegal
enterprises out of the country and back into the hands of the criminal
organizations--does not get as much publicity and is just as important.
In an effort to strike another blow to drug traffickers and criminals
who prey on our citizens by their ill-gotten gains, today I, in
conjunction with Senator D'Amato, am introducing companion legislation
to H.R. 1756, the Money Laundering and Financial Crimes Strategy Act of
1997. This legislation will authorize the Secretary of the Treasury, in
consultation with the Attorney General and other relevant agencies, to
coordinate and implement a national strategy to address the
exploitation of our Nation's payment systems to facilitate money
laundering and related financial crimes. The strategy will enhance and
expand the Secretary's authority to ascertain criminal activity
directed at our Nation's financial systems, determine the threat posed
to the integrity of such systems, and develop regulatory and law
enforcement initiatives to respond. The bill will hit the criminals
where they feel it the most--in their pocketbooks. By implementing a
strategy on a national level, hundreds of communities across our
country will no longer be held hostage by these criminal enterprises.
As we know, money laundering involves disguising financial assets so
they can be used without detection of the illegal activity that
produced them. Through money laundering, the criminal transforms the
monetary proceeds derived from the criminal activity into funds with an
apparently legal source. Money laundering provides the resources from
drug dealers, terrorists, arms dealers, and other criminals to operate
and expand their criminal enterprises. Today, experts estimate that
money laundering has grown into a $500 billion problem worldwide.
A significant component of this strategy will involve defining
specific criminal activity affecting geographic areas, payment systems
and financial institutions, that are considered to have a high
potential to be abused by criminal organizations. These high risk money
laundering zones will then be targeted for specific action, whether it
is specific law enforcement operations, preventative efforts to
insulate entire payment systems, or industry sectors from being
exploited by criminal elements. This legislation will help provide
assistance to localities for example, state and local prosecutors and
law enforcement officials in the form of federal financial crimes
grants to any area designated as a ``High Risk Money Laundering Zone.''
I would also like to thank my colleagues, Senators Dianne Feinstein,
Ted Stevens, Tim Hutchinson, Bob Graham, Chuck Hagel, and Lauch
Faircloth, for joining in cosponsoring this bi-partisan legislation.
Working together, we need to tighten up our financial control
capabilities to prevent criminal enterprises from abusing our financial
and banking systems. I hope this legislation will be the beginning of a
serious effort by Congress to impact the growing threat of money
laundering not only to our Nation, but worldwide.
Mr. President, I ask unanimous consent that I have a copy of my
legislation printed in the Record.
Mr. President, I would like to add Senator Strom Thurmond as
cosponsor of that legislation.
The PRESIDING OFFICER. Without objection, it is so ordered.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1003
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 ``Money Laundering and
Financial Crimes Strategy Act of 1997''.
SEC. 2. MONEY LAUNDERING AND RELATED FINANCIAL CRIMES.
(a) In General.--Chapter 53 of title 31, United States Code
is amended by adding at the end the following new subchapter:
``Subchapter III--Money Laundering and Related Financial Crimes
``SEC. 5341. DEFINITIONS.
``For purposes of this subchapter, the following
definitions shall apply:
``(1) Department of the treasury law enforcement
organizations.--The term `Department of the Treasury law
enforcement organizations' has the meaning given to such term
in section 9703(p)(1).
``(2) Money laundering and related financial crime.--The
term `money laundering and related financial crime' means an
offense under this subchapter, chapter II of title I of
Public Law 91-508 (12 U.S.C. 1951, et seq.; commonly referred
to as the `Bank Secrecy Act'), or section 1956, 1957, or 1960
of title 18 or any related Federal, State, or local criminal
offense.
``(3) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(4) Strategy.--The term `Strategy' means the National
Strategy for Combating Money Laundering and Related Financial
Crimes developed in accordance with section 5342.
``SEC. 5342. NATIONAL MONEY LAUNDERING AND RELATED FINANCIAL
CRIMES STRATEGY.
``(a) Development and Submission to Congress.--
``(1) Development.--The President, acting through the
Secretary, shall coordinate and develop a National Strategy
for Combating Money Laundering and Related Financial Crimes
(hereafter in this section referred to as the `Strategy').
``(2) Submission to congress.--On February 1 of fiscal
years 1999 through 2003, the Secretary shall submit the
Strategy to Congress in written form, in accordance with this
subchapter.
``(3) Separate presentation of classified material.--Any
part of the Strategy that involves information which is
properly classified under criteria established by Executive
order shall be submitted to Congress separately.
``(4) Contents.--Each Strategy submitted under paragraph
(2) shall include--
``(A) comprehensive, research-based, quantifiable goals for
reducing money laundering and related financial crime in the
United States;
``(B) 3-year budget projections for program and budget
priorities to implement the Strategy;
``(C) a review of State and local strategies to control
money laundering and other financial crimes to ensure that
the United States pursues well-coordinated and effective
money laundering and other financial crime controls at all
levels of Government;
``(D) a description of existing operational initiatives to
improve detection of money laundering and related financial
crimes;
``(E) a description of the actions taken by the Secretary
to achieve an enhanced partnership between the private
financial sector and law enforcement agencies, as required
under subsection (b)(3);
``(F) a description of--
``(i) cooperative efforts between the Federal Government
and State and local officials, including State and local
prosecutors and other law enforcement officials; and
``(ii) cooperative efforts among the several States and
between State and local officials, including State and local
prosecutors and other law enforcement officials, for
financial crimes control which could be utilized or should be
encouraged;
``(G) a complete assessment of how the proposed budget is
intended to implement the Strategy, and whether the funding
levels contained in the proposed budget are sufficient to
implement the Strategy;
``(H) the level of compatibility of automated information
systems, including the ease of access of the Federal
Government and State and local governments to timely,
accurate, and complete information;
``(I) a list of persons or officers consulted by the
Secretary pursuant to subsection (c); and
``(J) any other information necessary for the purpose of
developing and analyzing data in order to ascertain financial
crime trends.
``(b) Development of Strategy.--The Strategy shall address
any area that the President, acting through the Secretary,
considers appropriate, including the following:
``(1) Goals, objectives, and priorities.--Comprehensive,
research-based goals, objectives, and priorities for reducing
money laundering and related financial crime in the United
States.
``(2) Prevention.--Coordination of regulatory and other
efforts to prevent the exploitation of financial systems in
the United States for money laundering and related financial
crimes, including a requirement that the Secretary shall--
[[Page S7213]]
``(A) regularly review enforcement efforts under this
subchapter and other provisions of law and, when appropriate,
modify existing regulations or prescribe new regulations for
purposes of preventing such criminal activity; and
``(B) coordinate prevention efforts and other enforcement
action with the Board of Governors of the Federal Reserve
System, the Securities and Exchange Commission, the Federal
Trade Commission, other Federal banking agencies, and the
National Credit Union Administration Board.
``(3) Enhancement of role of private financial sector in
prevention.--The Secretary shall pursue an enhanced
partnership between the private financial sector and law
enforcement agencies with regard to the prevention and
detection of money laundering and related financial crimes,
including providing incentives to strengthen internal
controls and to adopt on an industrywide basis more effective
policies.
``(4) Designated areas.--A description of geographical
areas designated as `high-risk money laundering and related
financial crime areas' in accordance with section 5343.
``(5) Data regarding trends in money laundering and related
financial crimes.--The need for additional information
necessary for the purpose of developing and analyzing data in
order to ascertain financial crime trends.
``(6) Improved communications systems.--The compatibility
of automated information and facilitating access of the
Federal Government and State and local governments to timely,
accurate, and complete information, and what steps may be
necessary to improve such access.
``(c) Consultations.--In developing the Strategy, the
Secretary shall consult with--
``(1) law enforcement organizations of the Department of
the Treasury involved in the detection, prevention, and
suppression of money laundering and related financial crimes;
``(2) the Attorney General;
``(3) the Board of Governors of the Federal Reserve System,
the National Credit Union Administration Board, and other
Federal banking agencies;
``(4) State and local officials, including State and local
prosecutors;
``(5) the Securities and Exchange Commission;
``(6) the Commodities and Futures Trading Commission;
``(7) to the extent appropriate, State and local officials
responsible for financial institution and financial market
regulation;
``(8) any other State or local government authority, to the
extent appropriate;
``(9) any other Federal Government authority or
instrumentality, to the extent appropriate; and
``(10) representatives of the private financial services
sector, to the extent appropriate.
``SEC. 5343. HIGH-RISK MONEY LAUNDERING AND RELATED FINANCIAL
CRIME AREAS.
``(a) Findings and Purpose.--
``(1) Findings.--The Congress finds that--
``(A) money laundering and related financial crimes
frequently appear to be concentrated in particular geographic
areas, financial systems, industry sectors, or financial
institutions; and
``(B) while the Secretary has the responsibility to act
with regard to Federal offenses committed in a particular
locality or are directed at a single institution, because
modern financial systems and institutions are interconnected
to a great degree, money laundering and other related
financial crimes are likely to have local, State, national,
and international effects wherever they are committed.
``(2) Purpose and objective.--The purpose of this section
is to provide a mechanism for designating any area where
money laundering or a related financial crime appears to be
occurring at a higher than average rate, such that--
``(A) a comprehensive approach to the problem of such crime
in such area can be developed, in cooperation with State and
local law enforcement agencies, which utilizes the authority
of the Secretary to prevent such activity; or
``(B) the area can be targeted for law enforcement action.
``(b) Element of National Strategy.--The designation of
certain areas as areas in which money laundering and related
financial crimes are extensive or present a substantial risk
shall be an element of the Strategy developed pursuant to
section 5342.
``(c) Designation of Areas.--
``(1) Designation by secretary.--The Secretary, after
taking into consideration the factors specified in subsection
(d), shall designate any geographical area, industry, sector,
or institution in the United States in which money laundering
and related financial crimes are extensive or present a
substantial risk as a `high-risk money laundering and related
financial crimes area'.
``(2) Specific initiatives.--Any head of a department,
bureau, or law enforcement agency, including any State or
local prosecutor, involved in the detection, prevention, and
suppression of money laundering and related financial crimes
and any State or local official or prosecutor may submit a
written request for the designation of any area as a high-
risk money laundering and related financial crimes area.
``(3) Case-by-case determination.--In addition to the
factors specified in subsection (d), a designation of any
area under this subsection shall be made on the basis of a
determination by the Secretary that the particular area,
industry, sector, or institution is being victimized by, or
is particularly vulnerable to, money laundering and related
financial crimes.
``(d) Factors.--In designating an area as a high-risk money
laundering and related financial crimes area under this
section, the Secretary shall, to the extent appropriate, take
into account--
``(1) the population of the area;
``(2) the number of bank and nonbank financial institution
transactions that originate in such area or involve
institutions located in such area;
``(3) the number of stock or commodities transactions that
originate in such area or involve institutions located in
such area;
``(4) whether the area is a key transportation hub with any
international ports or airports or an extensive highway
system;
``(5) whether the area is an international center for
banking or commerce;
``(6) the extent to which financial crimes and financial
crime-related activities in such area are having a harmful
impact in other areas of the country;
``(7) the number or nature of requests for information or
analytical assistance that--
``(A) are made to the analytical component of the
Department of the Treasury; and
``(B) originate from law enforcement or regulatory
authorities located in such area, or involve institutions or
businesses located in such area or residents of such area;
``(8) whether the area is or has been the subject of active
money laundering investigations;
``(9) the volume or nature of suspicious activity reports
originating in the area;
``(10) the volume or nature of currency transaction reports
or reports of cross-border movements of currency or monetary
instruments originating in the area;
``(11) whether, and how often, the area has been the
subject of a geographical targeting order under section 5326
before being considered for such designation;
``(12) observed changes in trends and patterns of money
laundering activity;
``(13) unusual patterns, anomalies, growth, or other
changes in the volume or nature of core economic statistics
or indicators;
``(14) statistics or indicators of unusual or unexplained
volumes of cash transactions;
``(15) unusual patterns, anomalies, or changes in the
volume or nature of transactions conducted through financial
institutions operating within or outside the United States;
``(16) the extent to which State and local governments and
State and local law enforcement agencies have committed
resources to respond to the financial crime problem in the
area and the degree to which the commitment of such resources
reflects a determination by such government and agencies to
address the problem aggressively;
``(17) the extent to which a significant increase in the
allocation of Federal resources to combat financial crimes in
such area is necessary to provide an adequate State and local
response to financial crimes and financial crime-related
activities in such area; and
``(18) such other factors as the Secretary considers
relevant.
``SEC. 5344. ASSISTANCE FOR FIGHTING MONEY LAUNDERING AND
RELATED FINANCIAL CRIMES.
``(a) Grant Program Authorized.--
``(1) In general.--After the end of the 1-year period
beginning on the date on which the first Strategy is
submitted to the Congress in accordance with section 5342,
the Secretary may review, select, and award grants in
accordance with this subchapter from among applications
submitted under paragraph (2) to State or local law
enforcement agencies and prosecutors in an area designated as
a high-risk money laundering and related financial crimes
area under section 5343. Such grants shall be used to provide
funding necessary to investigate and prosecute money
laundering and related financial crimes in those areas.
``(2) Application process.--The Secretary shall award
grants under this subchapter upon receipt of written
application, in accordance with such terms and procedures as
the Secretary may establish.
``(3) Special preference.--In awarding grants under this
subsection, special preference shall be given to applicants
that represent collaborative efforts of 2 or more State and
local law enforcement agencies or prosecutors who have a
history of Federal, State, and local cooperative law
enforcement and prosecutorial efforts in responding to such
criminal activity.
``(b) Other Assistance Authorized.--Notwithstanding whether
a grant is awarded in an area designated as a high-risk money
laundering and related financial crimes area, the Secretary
may, in any such area--
``(1) recommend increases in Federal assistance that the
Secretary determines are necessary to combat financial crimes
in such areas; and
``(2) establish joint cooperative efforts and coordinate
enforcement activities among Federal law enforcement
organizations involved in the detection, prevention, and
suppression of money laundering and related financial crimes
and State and local law enforcement agencies with respect to
financial crimes in such area.
``SEC. 5345. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subchapter, subject to an appropriations Act--
[[Page S7214]]
``(1) $5,000,000 for fiscal year 1999;
``(2) $7,500,000 for fiscal year 2000;
``(3) $10,000,000 for fiscal year 2001;
``(4) $12,500,000 for fiscal year 2002; and
``(5) $15,000,000 for fiscal year 2003.''.
(b) Clerical Amendment.--The table of subchapters for
chapter 53 of title 31, United States Code, is amended by
adding at the end the following items relating to the
subchapter added by subsection (a) of this section:
``SUBCHAPTER III--MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
``Sec. 5341. Definitions.
``Sec. 5342. National money laundering and related financial crimes
strategy.
``Sec. 5343. High-risk money laundering and related financial crime
areas.
``Sec. 5344. Assistance for fighting money laundering and related
financial crimes.
``Sec. 5345. Authorization of appropriations.''.
SEC. 3. BUDGETS FOR LAW ENFORCEMENT ACTIVITIES RELATING TO
MONEY LAUNDERING AND RELATED FINANCIAL CRIMES.
Section 1105 of title 31, United States Code, is amended by
adding at the end the following new subsection:
``(h) Treatment of Funding.--The Director of the Office of
Management and Budget shall establish the funding for law
enforcement activities with respect to money laundering and
related financial crimes for each applicable department or
agency as a separate object class in each budget annually
submitted to the Congress under this section.''.
SEC. 4. REPORT AND RECOMMENDATIONS.
Before the end of the 5-year period beginning on the date
on which the first National Strategy for Combating Money
Laundering and Related Financial Crimes is submitted to the
Congress pursuant to section 5342 of title 31, United States
Code (as added by this Act), the Secretary of the Treasury
shall submit a report to the Committee on Banking and
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate on the effectiveness of and the need for the
designation of areas, under section 5343 of title 31, United
States Code (as added by this Act), as high-risk money
laundering and related financial crime areas, together with
such recommendations for legislation as the Secretary of the
Treasury may determine to be appropriate to carry out the
purposes of that section.
Mr. D'AMATO. Mr. President, today, I am proud to sponsor a bill which
attacks drug traffickers by making it harder for these criminals to
profit from their illegal windfalls. We have long known of the terrible
price our communities pay because of drug abuse; the dashed hopes and
dreams and the shattered lives of millions of Americans. The Congress,
and the Administration, have a responsibility to do everything we can
to restore those dreams and rebuild these communities.
Drug kingpins and cartels are destroying our neighborhoods and
poisoning our children. Unless we put an immediate stop to this
criminal behavior, drug lords will continue to penetrate our schools
and families.
Mr. President, through money laundering, drug traffickers are able to
take their blood money and launder it clean. These ill-gotten gains are
then filtered throughout our economy. Money laundering sustains drug
and arms dealers, as well as terrorists and other criminals searching
for a way to prolong their illegal enterprises. Tax evasions, and trade
and insurance fraud are the related byproducts of money laundering.
Money laundering robs our Nation's financial institutions of their
most valuable asset--their integrity. By abusing the Nation's financial
institutions, the launderers increase their wealth and power often by
purchasing land and buildings with these illicit funds. So it soon
becomes impossible to distinguish drug money from wealth earned by hard
working taxpayers.
Day in, day out, the drug lords relentlessly peddle their products of
death and misery for huge profits. While our police are hampered by
their inability to effectively target large cash transactions. This
bill sends the message that ``enough is enough.'' It hands our law
enforcement agencies the tools to hit the criminals where it hurts--in
the pocketbook.
Mr. President, the bill has three major provisions:
First, It requires the Treasury Secretary to create a national money
laundering strategy and report to Congress.
Second, It allows the Secretary to designate ``high risk zones" where
money laundering is concentrated.
Third, The high risk zones will be eligible for law enforcement
assistance and technical assistance and antimoney laundering grants.
This bill is not based on hypotheticals--it was not drafted out of
thin air--it is based on hands-on experience of what has worked for our
drug enforcement agencies. We have learned that the most effective
method of fighting this problem is for law enforcement agencies to work
together. That is why we have called for a national strategy. And that
is why the bill directs the Secretary to give special preference to law
enforcement or prosecutorial agencies that coordinate activities when
awarding grants to combat money laundering.
This approach has proven successful in a recent New York undercover
operation known as ``El Dorado''. This joint law enforcement effort
used a Treasury Department tool known as a GTO-Geographic Targeting
Order. Under the GTO, designated money remitters were required to
report detailed information about all cash transfers to Columbia over
$750. The results of Operation ``El Dorado'' were phenomenal:
Cash transfers by three major remitters plummeted from $67 million to
$2 million;
The overall number of transactions by those same remitters dropped 95
percent and the dollar amount dropped 97 percent;
There has been $30 million in currency seizures, three arrests and
one conviction.
Most importantly, Operation ``El Dorado'' disrupted the profit flow
from the United State to the drug cartels.
Operation El Dorado was a huge success--but it was limited by the
nature of the GTO itself--it is a temporary legal device. We need to
stop these criminals forever!
Our experience in New York demonstrates that only a comprehensive and
cooperative solution will achieve results. We must take decisive and
immediate steps to stop this insidious cancer from rotting away at our
country's legitimate economy and financial system. This bill would
essentially put in place a permanent GTO in high risk areas.
______
By Mr. AKAKA (for himself and Mr. Inouye):
S. 1006. A bill to authorize appropriations for the expansion of the
columbarium of the National Memorial Cemetery of the Pacific; to the
Committee on Veterans Affairs.
expansion of the national memorial cemetery of the pacific
Mr. AKAKA. Mr. President, I am today introducing a bill which allows
for the expansion of the National Memorial Cemetery of the Pacific,
commonly referred to as Punchbowl. I am pleased that my colleague, the
senior Senator from Hawaii, Senator Inouye has joined me as a sponsor
of this measure.
This is a very simple bill. It authorizes $1.5 million for the
construction of an additional columbarium at the National Memorial
Cemetery of the Pacific.
The cemetery is nearing its capacity and is only open to interment of
cremains. It is estimated by the year 2002, Punchbowl will no longer be
open for any burials. However, while the national cemetery will be
closed to burials, Hawaii will begin to experience 5 years of the
greatest expected burial needs for our World War II veterans.
Currently, 26,000 World War II veterans reside in Hawaii. Based on
present columbarium usage at Punchbowl, the Department of Veterans
Affairs expects 20 percent of these veterans to chose cremation and
inurnment at the National Memorial Cemetery of the Pacific.
The number of Hawaii veterans wishing to be interred at Punchbowl
does not include veterans who reside outside of Hawaii who would like
to be buried at this facility. Every year, we have veterans who choose
to return to Hawaii to be buried with their comrades.
The bill I am introducing today will allow Punchbowl to accommodate
5,000 additional veterans and their spouses. This small expansion will
allow our Nation's veterans, particularly those who served their
country in World War II, to be buried in National Memorial Cemetery of
the Pacific.
I urge my colleagues to support this fair and reasonable request on
behalf of our Nation's veterans.
______
By Mr. CHAFEE (by request):
[[Page S7215]]
S. 1007. 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; to the Committee on
Environment and Public Works.
THE DISASTER STREAMLINING AND COSTS REDUCTION ACT OF 1997
Mr. CHAFEE. Mr President, in my capacity as chairman of the Committee
on Environment and Public Works, I introduce today the Disaster
Streamlining and Costs Reduction Act of 1997, on behalf of the
administration. This bill amends the Robert T. Stafford Disaster Relief
and Emergency Assistance Act with the goal of reducing the costs of
disaster relief and emergency assistance provided by the Federal
Emergency Management Agency [FEMA].
This legislation was submitted to the Senate on June 30, 1997, by
FEMA Director James L. Witt. Submission of the bill fulfills, albeit
late, a directive included in the FY 1997 VA, HUD and Independent
Agencies Appropriations Act.
In that act, the distinguished Appropriations subcommittee chairman,
Senator Bond, and his ranking member, Senator Mikulski, directed FEMA
to propose methods of reducing the skyrocketing costs of Federal
disaster relief aid. I commend Senators Bond, Mikulski and other
Appropriations Committee members for their initiative.
As my colleagues are well aware, the Stafford Act is designed to
provide an orderly and continuing means of assistance by the Federal
Government to State and local governments in carrying out their
responsibilities to alleviate the suffering and damage which result
from disasters. In recent years, this assistance has grown increasingly
expensive and has resulted in the reduction of annual funding levels
for other Government programs which must compete directly with it.
I believe that the cause for the dramatic increase in disaster
spending is at least two-fold. First, we are witnessing a period when
more and more of our population is being affected by natural and man-
made disasters. This might be due to what some say is an increase in
the frequency of violent storms--coupled with the fact that a growing
proportion of our citizens reside in coastal and riverine regions,
causing them to be more vulnerable to floods.
Second, it is apparent that implementation of the Stafford Act could
be conducted in a more fiscally sound manner. Are too many facilities
or entities eligible for Federal disaster assistance? Is there
mismanagement of grant moneys? Is there too much red tape at FEMA?
These are the questions that have been asked.
This legislation purports to address both of these broad items
believed by many to have contributed to increased disaster spending. To
lessen risk to populations and structures, the administration's bill
establishes new hazard mitigation authorities. The bill also reduces
the number of public and private nonprofit facilities eligible for aid.
Finally, the bill includes various management reforms to streamline the
delivery of emergency assistance.
I have given this legislation a preliminary review and find that much
in it makes a great deal of sense. Other elements may be problematic.
But this is just the first step. This proposal will receive careful
scrutiny in the Committee on Environment and Public Works and most
likely will be modified several times after we have had a chance to
receive input from the States and from disaster relief experts from
across the country.
This is a serious issue involving the lives and property of millions
of Americans. It also involves billions of taxpayer dollars. While the
Congress must address these FEMA cost issues swiftly, we must also
preserve the central mission of the Stafford Act. Toward that end, I
look forward to conducting hearings on this bill in the Committee on
Environment and Public Works.
With the help of Senator Bond, who is also a member of the
Environment and Public Works Committee, Senator Inhofe, who chairs the
relevant subcommittee, and other members, I am confident that we will
be able to produce effective reform legislation in timely fashion. I
also look forward to working closely with Director Witt and the
administration and commend them for their proposal.
With that, Mr. President, I send the bill to the desk and ask that it
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1007
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) `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' 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. 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 disaster 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
[[Page S7216]]
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 pre0disaster 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 V0, 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 93) 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. 519c, 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 States 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 States 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 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
[[Page S7217]]
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 USC 5174,
are hereby 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 sales 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.
____________________