[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.

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