[Congressional Record Volume 145, Number 38 (Wednesday, March 10, 1999)]
[Senate]
[Pages S2512-S2518]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAFEE (by request):
  S. 583. A bill to amend the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to authorize programs for pre-disaster 
mitigation, to streamline the administration of disaster relief, to 
control the Federal costs of disaster assistance, and for other 
purposes; to the Committee on Environment and Public Works.


                    disaster mitigation act of 1999

  Mr. CHAFEE. Mr. President, today, at the administration's request, I 
am introducing the Disaster Mitigation Act of 1999. This bill is 
designed to promote pre-disaster mitigation and streamline the 
operations of the Federal Emergency Management Agency (FEMA).
  Last year, the Senate Committee on Environment and Public Works, 
which has oversight over FEMA, considered S. 2361, legislation authored 
by Senators Inhofe and Graham that was based in part on the 
administration's 1997 proposal. While S. 2361 was reported by the 
committee, it was not considered by the Senate before it adjourned last 
November.
  I believe it makes sense for Congress and FEMA to pay attention to 
pre-disaster mitigation efforts--i.e., the steps that can be taken 
before a disaster strikes. It also makes sense for us to ensure that 
FEMA's operations are streamlined so that the administering of disaster 
relief proceeds as smoothly and efficiently as possible. Taking these 
steps not only would be easier on the budget, but also would help 
prevent needless human suffering.
  It is my hope that working with the administration, we will be able 
to craft legislation that will accomplish our goals. I look forward to 
working with my colleagues and administration officials toward that 
end.
  I ask unanimous consent that the full text 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. 583

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Disaster 
     Mitigation Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to the Robert T. Stafford Disaster Relief and 
              Emergency Assistance Act.

                 TITLE I--PREDISASTER HAZARD MITIGATION

Sec. 101. Findings and purpose.
Sec. 102. Pre-Disaster Hazard Mitigation.
Sec. 103. Maximum contribution for mitigation costs.
Sec. 104. Conforming amendment.

       TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE

Sec. 201. Insurance.
Sec. 202. Management costs.
Sec. 203. Assistance to repair, restore, reconstruct, or replace 
              damaged facilities.
Sec. 204. Federal assistance to households.
Sec. 205. Repeals.

                        TITLE III--MISCELLANEOUS

Sec. 301. Technical correction of short title.
Sec. 302. Definitions.

     SEC. 2. AMENDMENTS TO THE ROBERT T. STAFFORD DISASTER RELIEF 
                   AND EMERGENCY ASSISTANCE ACT.

       Except as otherwise specifically provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision of 
     law, the reference shall be considered to be made to a 
     section or other provision of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

                TITLE I--PREDISASTER HAZARDS MITIGATION

     SEC. 101. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) natural disasters, including earthquakes, tsunamis, 
     tornadoes, hurricanes and flooding, cause great danger to 
     human life and to property throughout the United States.
       (2) greater emphasis needs to be placed on identifying and 
     assessing the risks to State and local communities and on 
     implementing adequate measures to reduce losses from such 
     disasters, and to ensure that communities' critical public 
     infrastructure and facilities will continue to function after 
     a disaster.
       (3) expenditures for post-disaster assistance are 
     increasing without commensurate reductions in the likelihood 
     of future losses from such natural disasters;
       (4) high priority in the expenditure of Federal funds under 
     this Act should be given to mitigate hazards for existing and 
     new construction at the local level;
       (5) with a unified effort of economic incentives, awareness 
     and education, technical assistance, and demonstrated Federal 
     support, States and local communities can form effective 
     community-based partnerships for hazard mitigation purposes, 
     implement effective hazards mitigation measures that reduce 
     the existing disaster potential, ensure continued 
     functionality of communities' critical public infrastructure, 
     leverage additional non-Federal resources into their disaster 
     resistance goals, and make commitments to long-term 
     mitigation efforts in new and existing construction.
       (b) Purpose.--It is the purpose of this Act to establish a 
     national disaster mitigation program that--
       (1) reduces the loss of life and property, human suffering, 
     economic disruption and disaster assistance costs resulting 
     from natural hazards, and
       (2) provides a source of pre-disaster mitigation funding 
     that will assist states and local governments in implementing 
     effective mitigation measures that are designed to ensure the 
     continued functionality of their critical facilities and 
     public infrastructure after a natural disaster.

     SEC. 102. PRE-DISASTER HAZARD MITIGATION.

       (a) Title II of the Act is amended by adding new section 
     203 as follows:

     ``SEC. 203. PRE-DISASTER HAZARD MITIGATION.

       ``(a) General Authority.--The Director may establish a 
     program of technical and financial assistance to states and 
     local governments that implement predisaster mitigation 
     measures in order to reduce injuries and loss of life and 
     damage and destruction of property including damage to their 
     critical public infrastructure and facilities.
       ``(b) Approval by Director.--If the Director finds that a 
     state or local government has identified all natural hazards 
     in its jurisdiction and has demonstrated its ability to form 
     effective public/private disaster mitigation partnerships, he 
     may provide financial assistance to the State or local 
     government for such purposes from the fund established under 
     subsection (d) of this section.
       ``(c) Purpose of Grants.--(1) The financial assistance 
     shall be used principally by states and local governments to 
     implement the predisaster hazard mitigation measures 
     contained in proposals approved by the Director. Funding may 
     also be used to support effective public/private 
     partnerships, to ensure that new community growth and 
     construction is disaster resistant, and to improve the

[[Page S2513]]

     assessment of a community's natural hazards vulnerabilities 
     or to set a community's mitigation priorities.
       ``(2) The Director shall take into account the following 
     when establishing priorities for pre-disaster mitigation 
     grants:
       ``(A) The level and nature of the risks to be mitigated;
       ``(B) Grantee commitment to reduce damages from future 
     disasters;
       ``(C) commitment by the State and local government to 
     support ongoing non-Federal support for the mitigation 
     measures to be undertaken.
       ``(d) National Pre-Disaster Mitigation Fund.--To carry out 
     the pre-disaster mitigation program authorized in subsection 
     (a), the Director may establish in the United States Treasury 
     a National Predisaster Mitigation Fund (``Fund''), which 
     shall be available without fiscal year limitation for grants 
     to States and local governments under subsection (b) of this 
     section.
       ``(e) Funds for the Account.--The Fund shall be credited 
     with:
       ``(1) Funds appropriated by the Congress for the purposes 
     of this section, which funds shall be available until 
     expended; and
       ``(2) sums available from bequests, gifts, or donations of 
     service, money, or property, real, personal, or mixed, 
     tangible, or intangible, given for purposes of pre-disaster 
     mitigation.
       ``(f) Federal Share.--Subject to the provisions of 
     subsections (g) and (h) of this section, grants from the Fund 
     shall be not more than 75 percent of the total costs of the 
     mitigation proposal(s) approved by the Director.
       ``(g) Limit on Grants.--No grants shall be made in excess 
     of the money available in the Fund.
       ``(h) Rules Governing the Account.--The Director shall 
     publish rules to carry out the provisions of this section.
       ``(b) Effective Date.--Subsection (a) of this section shall 
     take effect on the date of enactment of the Disaster 
     Mitigation Act of 1999.

     SEC. 103. MAXIMUM CONTRIBUTION FOR MITIGATION COSTS.

       ``(a) In General.--Section 404(a) of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5170c(a)) is amended in the last sentence by striking ``15 
     percent'' and inserting ``20 percent''.
       ``(b) Applicability.--The amendment made by subsection (a) 
     shall apply to each major disaster declared under the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.) after the date of enactment of this Act.

     SEC. 104. CONFORMING AMENDMENT.

       Title II of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5131 et seq.) is amended 
     by striking the title heading and inserting the following:

     ``TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE''.

       TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE

     SEC. 201. INSURANCE.

       Section 311(a)(2) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5154(a)(2)) is 
     amended--
       (a) by inserting ``(A)'' before the sentence; and
       (b) adding paragraph (B) to the subsection as follows:
       ``(B) The President shall publish rules to require States, 
     communities or other applicants to protect property through 
     self-insurance or adequate mitigation measures if the 
     appropriate State insurance commissioner makes the 
     certification provided in paragraph (A) and the President 
     determines that the property is not adequately protected 
     against natural or other disasters.''

     SEC. 202. MANAGEMENT COSTS.

       (a) In General.--Title III of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5141 
     et seq.) is amended by adding a new Section 322 as follows:

     ``SEC. 322. MANAGEMENT COSTS.

       ``(a) Definition of Management Cost.--The term `management 
     cost', as used in this section, includes any indirect cost, 
     administrative expense, and any other expense not directly 
     chargeable to a specific project under a major disaster, 
     emergency, or emergency preparedness activity or measure.
       ``(b) Management Cost Rates.--Notwithstanding any other 
     provision of law (including any administrative rule or 
     guidance), the President shall establish management cost 
     rates for grantees and subgrantees that shall be used to 
     determine contributions under this Act for management costs.
       ``(c) Review.--The President shall review the management 
     cost rates established under subsection (b) not later than 3 
     years after the date of establishment of the rates and 
     periodically thereafter.
       ``(d) Regulations.--The President shall promulgate 
     regulations to define appropriate costs to be included in 
     management costs under this section.''.
       (b) Applicability.--Section 322 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (as added by 
     subsection (a)) shall apply as follows:
       (1) In general.--Subsections (a), (b), and (d) of section 
     322 of that Act shall apply to each major disaster declared 
     under that Act on or after the date of enactment of this Act. 
     Until the date on which the President establishes the 
     management cost rates under that subsection, section 406(f) 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5172(f)) shall be used for 
     establishing the rates.
       (2) Review; Other Expenses.--Section 322(c) of that Act 
     shall apply to each major disaster declared under that Act on 
     or after the date on which the President establishes the 
     management cost rates under that section.

     SEC. 203. ASSISTANCE TO REPAIR, RESTORE, RECONSTRUCT, OR 
                   REPLACE DAMAGED FACILITIES.

       (a) Minimum Federal Share.--Section 406(b) of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5172(b)) is amended to read as follows:
       ``(b)(1) Except as provided in paragraph (2) of this 
     subsection, the Federal share of assistance under this 
     section shall be not less than 75 percent of the eligible 
     cost of repair, restoration, reconstruction, or replacement 
     carried out under this section.
       ``(2) The President shall publish rules to reduce the 
     Federal share of assistance under this section for the 
     repair, restoration, reconstruction, or replacement of any 
     eligible public or private nonprofit facility that has 
     previously received significant disaster assistance under 
     this Act on multiple occasions.''
       (b) Contributions and Federal Share.--Section 406 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5172) is amended by striking subsection (e) 
     and inserting new subsection (e) to read as follows:
       ``(e) Eligible Cost.--
       ``(1) Determination.--
       ``(A) In General.--For the purposes of this section, the 
     President shall estimate the eligible cost of repairing, 
     restoring, reconstructing, or replacing a public facility or 
     private nonprofit facility--
       ``(i) on the basis of the design of the facility as the 
     facility existed immediately before the major disaster; and
       ``(ii) in conformity with current applicable codes, 
     specifications, and standards (including floodplain 
     management and hazard mitigation criteria required by the 
     President or under the Coastal Barrier Resources Act (16 
     U.S.C. 3501 et seq.)).
       ``(B) Cost Estimation Procedures.--Subject to paragraph 
     (2), the President shall use the cost estimation procedures 
     developed under paragraph (3) to make the estimate under 
     subparagraph (A).
       ``(2) Modification of Eligible Cost.--If the actual cost of 
     repairing, restoring, reconstructing, or replacing a facility 
     under this section is more than 120 percent or less than 80 
     percent of the cost estimated under paragraph (1), the 
     President may determine that the eligible cost shall be the 
     actual cost of the repair, restoration, reconstruction, or 
     replacement.
       ``(3) Expert Panel.--Not later than 18 months after the 
     date of enactment of this paragraph, the President, acting 
     through the Director of the Federal Emergency Management 
     Agency, shall establish an expert panel, which shall include 
     representatives from the construction industry, to develop 
     procedures for estimating the cost of repairing, restoring, 
     reconstructing, or replacing a facility consistent with 
     industry practices.
       ``(4) Special rule.--In any case in which the facility 
     being repaired, restored, reconstructed, or replaced under 
     this section was under construction on the date of the major 
     disaster, the cost of repairing, restoring, reconstructing, 
     or replacing the facility shall include, for the purposes of 
     this section, only those costs that, under the contract for 
     the construction, are the owner's responsibility and not the 
     contractor's responsibility.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on the date of enactment of this Act, 
     except that paragraph (1) of section 406(e) of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (as 
     amended by paragraph (1)) shall take effect on the date on 
     which the procedures developed under paragraph (3) of that 
     section take effect.

     SEC. 204. FEDERAL ASSISTANCE TO HOUSEHOLDS.

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

     ``SEC. 408. FEDERAL ASSISTANCE TO HOUSEHOLDS.

       ``(a) General Authority.--In accordance with this section, 
     the President, in consultation and coordination with the 
     Governor of an affected State, may provide financial 
     assistance, and, if necessary, direct services, to disaster 
     victims who--
       ``(1) as a direct result of a major disaster have necessary 
     expenses and serious needs; and
       ``(2) are unable to meet the necessary expenses and serious 
     needs through other means, including insurance proceeds or 
     loan or other financial assistance from the Small Business 
     Administration or another Federal agency. Inability to meet 
     necessary expenses and serious needs through loan or other 
     financial assistance from the Small Business Administration 
     or another Federal agency shall not apply to temporary 
     housing or rental assistance under subsection (c)(2) or to 
     permanent housing construction under subsection (c)(4) of 
     this section.
       ``(b) Housing Assistance.--
       ``(1) Eligibility.--The President may provide financial or 
     other assistance under this section to household to respond 
     to the disaster-related housing needs of households that are 
     displaced from their predisaster primary residences or whose 
     predisaster primary residences are rendered uninhabitable as 
     a result of damage caused by a major disaster.
       ``(2) Determination of appropriate types of assistance.--
     The President shall determine appropriate types of housing 
     assistance

[[Page S2514]]

     to be provided to disaster victims under this section based 
     on considerations of cost effectiveness, convenience to 
     disaster victims, and such other factors as the President 
     considers to be appropriate. One or more types of housing 
     assistance may be made available, based on the suitability 
     and availability of the types of assistance, to meet the 
     needs of disaster victims in a particular disaster situation.
       ``(c) Types of Housing Assistance.--
       ``(1) Federal assistance under this subjection shall 
     continue no longer than 18 months after the date of the major 
     disaster declaration by the President, unless the President 
     determines that it is in the public interest to extend such 
     18-month period.
       ``(2) Temporary housing.--
       ``(A) Financial assistance.--
       ``(i) In general.--The President may provide financial 
     assistance under this section to households to rent alternate 
     housing accommodations, existing rental units, manufactured 
     housing, recreational vehicles, or other readily fabricated 
     dwellings.
       ``(ii) Amount.--The amount of assistance under clause (i) 
     shall be based on the sum of--
       ``(I) the fair market rent for the accommodation being 
     provided; and
       ``(II) the cost of any transportation, utility hookups, or 
     unit installation not being directly provided by the 
     President.
       ``(B) Direct assistance.--
       ``(i) In general.--The President may directly provide under 
     this section housing units, acquired by purchase or lease, to 
     households who, because of a lack of available housing 
     resources, would be unable to make use of the assistance 
     provided under subparagraph (A).
       ``(ii) Collection of rental charges.--After the expiration 
     of the 18-month period referred to in paragraph (c)(1), the 
     President may charge fair market rent for the accommodation 
     being furnished.
       ``(3) Repairs.--
       ``(A) In general.--The President may provide financial 
     assistance for the repair of owner-occupied primary 
     residences, utilities, and residential infrastructure (such 
     as private access routes) damaged by a major disaster to a 
     habitable or functioning condition.
       ``(B) Emergency repairs.--To be eligible to receive 
     assistance under subparagraph (A), a recipient shall not be 
     required to demonstrate that the recipient is unable to meet 
     the need for the assistance through other means, except 
     insurance proceeds, if the assistance--
       ``(i) is used for emergency repairs to make a private 
     primary residence habitable; and
       ``(ii) does not exceed $5,000, as adjusted annually to 
     reflect changes in the Consumer Price Index for Urban 
     Consumers as reported by the Bureau of Labor Statistics of 
     the Department of Labor.
       ``(4) Permanent housing construction.--The President may 
     provide financial assistance or direct assistance under this 
     section to households to construct permanent housing in 
     insular areas outside the continental United States and in 
     other remote locations in cases in which--
       ``(A) no alternative housing resources are available; and
       ``(B) the types of temporary housing assistance described 
     in paragraph (c)(1) are unavailable, infeasible, or not cost 
     effective.
       ``(d) Terms and Conditions Relating to Housing 
     Assistance.--
       ``(1) Sites.--
       ``(A) In general.--Any readily fabricated dwelling provided 
     under this section shall, whenever practicable, be located on 
     a site that--
       ``(i) is provided by the State or local government; and
       ``(ii) is complete with utilities provided by the State or 
     local government, by the owner of the site, or by the 
     occupant who was displaced by the major disaster.
       ``(B) Sites provided by the president.--Readily fabricated 
     dwellings may be located on sites provided by the President 
     if the President determines that the sites would be more 
     economical or accessible.
       ``(2) Disposal of units.--
       ``(A) Sale To Occupants.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, a temporary housing unit purchased under this section by 
     the President for the purpose of housing disaster victims may 
     be sold directly to the household who is occupying the unit 
     if the household needs permanent housing.
       ``(ii) Sales price.--Sales of temporary housing units under 
     this clause shall be accomplished at prices that are fair and 
     equitable.
       ``(iii) Deposit of proceeds.--Notwithstanding any other 
     provision of law, the proceeds of a sale under clause (i) 
     shall be deposited into the appropriate Disaster Relief Fund 
     account.
       ``(iv) Use of gsa services.--The President may use the 
     services of the General Services Administration to accomplish 
     a sale under clause (i).
       ``(B) Other methods of disposal.--
       ``(i) Sale.--If not disposed of under subparagraph (A), a 
     temporary housing unit purchased by the President for the 
     purpose of housing disaster victims may be resold.
       ``(ii) Disposal to governments and voluntary 
     organizations.--A temporary housing unit described in clause 
     (i) may be sold, transferred, donated, or otherwise made 
     available directly to a State or other governmental entity or 
     to a voluntary organization for the sole purpose of providing 
     temporary housing to disaster victims in major disasters and 
     emergencies if, as a condition of the sale, transfer, 
     donation, or other making available, the State, other 
     governmental agency, or voluntary organizations agrees--
       ``(I) to comply with the nondiscrimination provisions of 
     section 308; and
       ``(II) to obtain and maintain hazard and flood insurance on 
     the housing unit.
       ``(e) Financial Assistance To Address Other Needs.--
       ``(1) Medical, dental, and funeral expenses.--The 
     President, in consultation and coordination with the Governor 
     of the affected State, may provide financial assistance under 
     this section to a household adversely affected by a major 
     disaster to meet disaster-related medical, dental, and 
     funeral expenses.
       ``(2) Personal property, transportation, and other 
     expenses.--The President, in consultation and coordination 
     with the Governor of the affected State, may provide 
     financial assistance under this section to a household 
     described in paragraph (1) to address personal property, 
     transportation, and other necessary expenses or serious needs 
     resulting from the major disaster.
       ``(f) State Role.--The President shall provide for the 
     substantial and ongoing involvement of the affected State in 
     administering assistance under this section.
       ``(g) Maximum Amount of Assistance.--The maximum amount of 
     financial assistance that a household may receive under this 
     section with respect to a single major disaster shall be 
     $25,000, as adjusted annually to reflect changes in the 
     Consumer Price Index for all Urban Consumers published by the 
     Department of Labor.
       ``(h) Issuance of Regulations.--The President shall issue 
     rules and regulations to carry out the program established by 
     this section, including criteria, standards, and procedures 
     for determining eligibility for assistance.''.
       (b) Conforming Amendment.--Section 502(a)(6) of the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5192(a)(6)) is amended by striking ``temporary 
     housing''.
       (c) Repeal of Individual and Family Grant Programs.--
     Section 411 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5178) is repealed.
       (d) Effective Date.--The amendments made by this section 
     take effect 18 months after the date of enactment of this 
     Act.

     SEC. 205. REPEALS.

       (a) Associated Expenses.--Subject to the provisions of 
     section 202(b)(2) of this Act, section 406(f) of the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5172(f)) is repealed.
       (b) Community Disaster Loans.--Section 417 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5184) is repealed.
       (c) Simplified Procedure.--Section 422 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5189) is repealed.
                                  ____


                           Sectional Analysis

       Sec. 1 Short title; table of contents. Section 1 
     establishes the short title of the bill as the ``Disaster 
     Mitigation Act of 1999.''
       Sec. 2. Amendments to the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act. This section states that 
     unless otherwise specified, any amendment or repeal of a 
     section or provision shall be considered to be made to the 
     Stafford Act.


                 title i--predisaster hazard mitigation

       Sec. 101. Findings and purpose. Adopts the findings and 
     statement of purpose found in S. 2361, 105th Congress. 
     Section 101 describes four findings of Congress: (1) greater 
     emphasis needs to be placed on hazard identification and 
     hazard mitigation, (2) expenditures for disaster assistance 
     are increasing without evidence of potential reduction of 
     future losses, (3) a high priority should be placed on the 
     implementation or predisaster mitigation activities, and (4) 
     a unified effort will be successful in reducing future losses 
     from natural disasters.
       These findings signal the importance of commitments by 
     States and local communities to long-term disaster mitigation 
     efforts (including developing appropriate construction 
     standards, practices and materials) for new and existing 
     structures. Such commitments can help reduce the rise of 
     future damage to life and property and ensure that critical 
     facilities and public infrastructure will function after a 
     disaster strikes.
       Sec. 102. Pre-Disaster Hazard Mitigation. Section 102 
     creates a new Section 203 in the Stafford Act that authorizes 
     the Director to establish a program for States, local 
     governments, and other entities for carrying out predisaster 
     mitigation activities that exhibit long-term, cost-effective 
     benefits and substantially reduce the risk of future damage 
     from major disasters. For the purposes of this section, the 
     term ``entities'' refers to governmental entities of the 
     State or local government, regional planning organizations, 
     governmental units organized along watershed or other 
     planning foci, or tribal governments.
       In selecting a site, the Director must consider the 
     likelihood of damage resulting from a natural disaster; the 
     identification of cost effective mitigation activities with 
     meaningful outcomes; the consistency with State mitigation 
     programs; the opportunity to maximize net benefits to 
     society; the ability of a State or local government or entity 
     to fund mitigation activities; private sector interest; and 
     other criteria established in coordination with State and 
     local governments. The Director must take into account

[[Page S2515]]

     the level and nature of risks to be mitigated, grantee 
     commitment to reduce damages from future disasters, and 
     commitment by the State or local government to support 
     ongoing non-Federal support for the mitigation measures to be 
     undertaken when establishing priorities for pre-disaster 
     mitigation grants.
       With regard to mitigation activities, this section requires 
     the President and the States to consult on a list of those 
     activities that are appropriate, and delegates decisions 
     regarding selections from the list to local governments.
       States receiving financial assistance under this section 
     may use the assistance to fund activities to disseminate 
     information about cost-effective mitigation technologies. 
     Certain construction standards, practices, and materials have 
     been proven effective in mitigating the risks or impacts of 
     actual natural disasters. Public awareness of these 
     technologies can allow communities to make informed decisions 
     that can substantially reduce the risk of future damage, 
     hardship or suffering from a major disaster.
       Sec. 103. Maximum contribution for mitigation costs. 
     Section 103 amends Section 404(a) of the Stafford Act by 
     changing maximum hazard mitigation contributions from 15% to 
     20% of aggregate amount of grants. The changes made by this 
     section are applicable to all major disasters declared after 
     January 1, 1999.
       Sec. 104. Conforming amendment. This section amends to the 
     heading of Title II to read ``Title II--Disaster Preparedness 
     and Mitigation Assistance''.


       TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE.

       Sec. 201. Insurance. Section 201 amends Sec. 311(a)(2) of 
     the Stafford Act to authorize the President to require by 
     regulation that States, communities or other applicants 
     protect property through self-insurance or adequate 
     mitigation measures if the State's insurance commissioner 
     certifies that insurance is not reasonably available. Under 
     current law if the State insurance commissioner certifies 
     that insurance is not reasonably available, an applicant need 
     not take any further action to insure or mitigate the 
     property against future damage. This provision authorizes the 
     President to require further action to reduce future 
     potential damage to the affected property.
       Sec. 202. Management costs. Section 203 adds a new Section 
     322 to the Stafford Act. It provides a definition for 
     management costs and directs the President to establish 
     management cost reimbursement rates, subject to periodic 
     review, for grantees and subgrantees receiving assistance 
     under the Act. Appropriate costs are to be established by 
     Federal regulation. The current reimbursement system will 
     remain in effect for disasters declared before the new rates 
     are established.
       Sec. 203. Assistance to repair, restore, reconstruct, or 
     replace damaged facilities. Section 203 amends and 
     reorganizes the section of the Stafford Act (Section 406) 
     that provides authority to the President to make 
     contributions to a State, local government, or person for the 
     repair, restoration, or replacement of public facilities or 
     private nonprofit facilities. As amended, this section 
     establishes a minimum Federal share of 75 percent of the 
     cost of such activities. Section 203 would also amend 
     Section 206 to authorize reduction in Federal disaster 
     assistance for facilities which had received disaster 
     assistance in the past and for which insurance had not 
     been maintained since receipt of the disaster assistance.
       This section also sets new rules for cost estimates by 
     allowing the cost of repairs in situations where the actual 
     cost is above 120 percent or below 80 percent of the 
     estimated cost to be reconsidered. In addition, it directs 
     the President to establish an expert panel for development of 
     procedures for cost estimations.
       Sec. 204. Federal assistance to households. Section 204(a) 
     amends Section 408 of the Stafford Act to combine the Housing 
     and Individual and Family Grant (IFG) Programs. As amended, 
     this section establishes the type of assistance available for 
     housing, repairs, and construction, and caps total assistance 
     per individual or household under the combined program at 
     $25,000 per major disaster. It authorizes the President to 
     assist individuals by replacing their homes under certain 
     conditions or allowing them to rent alternate housing 
     accommodations, and by providing financial assistance for 
     medical, dental, funeral, personal property, and 
     transportation expenses. The President is to issue 
     regulations to determine eligibility for assistance.
       Section 204(b) deletes the term ``temporary housing'' from 
     Sec. 502(a)(6) of the Stafford Act. Section 502 specifies and 
     limits the emergency assistance that the President may 
     provide when he declares an emergency under the Act. 
     Paragraph (a)(6) states that he may provide ``temporary 
     housing assistance'' under Sec. 408 of the Act. This 
     amendment would give the President authority to provide 
     assistance under Sec. 408, which would encompass both housing 
     and assistance to individuals and households in the 
     consolidated section.
       Sec. 204(c) repeals the Individual and Family Grant 
     programs, which under this legislation are consolidated with 
     the Temporary Housing program.
       Sec. 205. Repeals. Section 205 repeals Section 406(f) and 
     Section 417 of the Stafford Act (providing for Associated 
     Expenses and for Community Disaster Loans), as well as 
     Section 422 (regarding simplified procedure), in order to 
     conform with the amendment made under Section 202(d) of the 
     bill.
                                  ____


                       Ramseyer/Cordon Comparison

    Materials deleted within bold brackets [  ], new text in italic.

     SEC. 101. FINDINGS AND PURPOSE.

       (d) Findings.--The Congress finds that--
       (1) natural disasters, including earthquakes, tsunamis, 
     tornadoes, hurricanes and flooding, cause great danger to 
     human life and to property throughout the United States.
       (2) greater emphasis needs to be placed on identifying and 
     assessing the risks to State and local communities and on 
     implementing adequate measures to reduce losses from such 
     disasters, and to ensure that communities' critical public 
     infrastructure and facilities will continue to function after 
     a disaster.
       (3) expenditures for post-disaster assistance are 
     increasing without commensurate reductions in the likelihood 
     of future losses from such natural disasters;
       (4) high priority in the expenditure of Federal funds under 
     this Act should be given to mitigate hazards for existing and 
     new construction at the local level;
       (5) with a unified effort of economic incentives, awareness 
     and education, technical assistance, and demonstrated Federal 
     support, States and local communities can form effective 
     community-based partnerships for hazard mitigation purposes, 
     implement effective hazards mitigation measures that reduce 
     the existing disaster potential, ensure continued 
     functionality of communities' critical public infrastructure, 
     leverage additional non-Federal resources into their disaster 
     resistance goals, and make commitments to long-term 
     mitigation efforts in new and existing construction.
       (b) Purpose.--It is the purpose of this Act to establish a 
     national disaster mitigation program that--
       (1) reduces the loss of life and property, human suffering, 
     economic disruption and disaster assistance costs resulting 
     from natural hazards, and
       (2) provides a source of pre-disaster mitigation funding 
     that will assist states and local governments in implementing 
     effective mitigation measures that are designed to ensure the 
     continued functionality of their critical facilities and 
     public infrastructure after a natural disaster.

     SEC. 102. PRE-DISASTER HAZARD MITIGATION.

     42 U.S.C. SEC. 203. PRE-DISASTER HAZARD MITIGATION.

       (a) General Authority.--The Director may establish a 
     program of technical and financial assistance to states and 
     local governments that implement predisaster mitigation 
     measures in order to reduce injuries and loss of life and 
     damage and destruction of property including damage to their 
     critical public infrastructure and facilities.
       (b) Approval by Director.--If the Director finds that a 
     state or local government has identified all natural disaster 
     hazards in its jurisdiction and has demonstrated its ability 
     to form effective public/private disaster mitigation 
     partnerships, he may make grants to the State or local 
     government for such purposes from the fund established under 
     subsection (d) of this section.
       ``(c) Purpose of Grants.--(1) The financial assistance 
     shall be used principally by states and local governments to 
     implement the predisaster hazard mitigation measures 
     contained in proposals approved by the Director. Funding may 
     also be used to support effective public/private 
     partnerships, to ensure that new community growth and 
     construction is disaster resistant, and to improve the 
     assessment of a community's natural hazards vulnerabilities 
     or to set a community's mitigation priorities.
       ``(2) The Director shall take into account the following 
     when establishing priorities for pre-disaster mitigation 
     grants:
       ``(A) the level and nature of the risks to be mitigated;
       ``(B) Grantee commitment to reduce damages from future 
     disasters;
       ``(C) commitment by the State or local government to 
     support ongoing non-Federal support for the mitigation 
     measures to be undertaken.
       (d) National Pre-Disaster Mitigation Fund.--To carry out 
     the pre-disaster mitigation program authorized in subsection 
     (a), the Director shall establish in the United States 
     Treasury a National Predisaster Mitigation Fund (``Fund''), 
     which shall be an account separate from any other accounts or 
     funds, and which shall be available without fiscal year 
     limitation for grants to States and local governments under 
     subsection (b) of this section.
       (e) Funds for the Account.--The Fund shall be credited 
     with:
       (1) funds appropriated by the Congress for the purposes of 
     this section which funds shall be available until expended; 
     and
       (2) sums available from bequests, gifts, or donations of 
     service, money, or property, real, personal, or mixed, 
     tangible, or intangible, given for purposes of pre-disaster 
     mitigation.
       (f) Federal Share.--Subject to the provisions of 
     subsections (g) and (h) of this section, grants from the Fund 
     shall be not more than 75 percent of the total cost of the 
     mitigation proposal(s) approved by the Director.
       (g) Limit on Grants.--No grants shall be made in excess of 
     the money available in the Fund.
       3(h) Rules Governing the Account.--The Director shall 
     publish rules to carry out the provisions of this section.

     SEC. 103. MAXIMUM CONTRIBUTION FOR MITIGATION COSTS.

     42 U.S.C. SEC. 404. HAZARD MITIGATION.

       (a) In General.--
       The President may contribute up to 75 percent of the cost 
     of hazard mitigation measures which the President has 
     determined are

[[Page S2516]]

     cost-effective and which substantially reduce the risk of 
     future damage, hardship, loss, or suffering in any area 
     affected by a major disaster. Such measures shall be 
     identified following the evaluation of natural hazards under 
     section 5176 of this title and shall be subject to approval 
     by the President. The total of contributions under this 
     section for a major disaster shall not exceed [15] 20 percent 
     of the estimated aggregate amount of grants to be made (less 
     any associated administrative costs) under this chapter with 
     respect to the major disaster.

     SEC. 201. INSURANCE.

     42 U.S.C. SEC. 311. INSURANCE.

       (a) Applicants for Replacement of Damaged Facilities.--

                           *   *   *   *   *

       (2) Determination.--
       (A) In making a determination with respect to availability, 
     adequacy, and necessity under paragraph (1), the President 
     shall not require greater types and extent of insurance than 
     are certified to him as reasonable by the appropriate State 
     insurance commissioner responsible for regulation of such 
     insurance.
       (B) The President shall publish rules to require States, 
     communities or other applicants to protect property through 
     self-insurance or adequate mitigation measures if the 
     appropriate State insurance commissioner makes the 
     certification provided in paragraph (A) and the President 
     determines that the property is not adequately protected 
     against natural or other disasters.

     SEC. 202. MANAGEMENT COSTS

     SEC. 322. MANAGEMENT COSTS.

       (a) Definition of Management Cost.--The term `management 
     cost', as used in this section, includes any indirect cost, 
     administrative expense, and any other expense not directly 
     chargeable to a specific project under a major disaster, 
     emergency, or emergency preparedness activity or measure.
       (b) Management Cost Rates.--Notwithstanding any other 
     provision of law (including any administrative rule or 
     guidance), the President shall establish management cost 
     rates for grantees and subgrantees that shall be used to 
     determine contributions under this Act for management costs.
       (C) Review.--The President shall review the management cost 
     rates established under subsection (b) not later than 3 years 
     after the date of establishment of the rates and periodically 
     thereafter.
       (d) Regulations.--The President shall promulgate 
     regulations to define appropriate costs to be included in 
     management costs under this section.

     SEC. 203. ASSISTANCE TO REPAIR, RESTORE, RECONSTRUCT, OR 
                   REPLACE DAMAGED FACILITIES

     42 U.S.C. SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF 
                   DAMAGED FACILITIES

       (a) Minimum Federal Share.--
       [Sec. 406] (b) Minimum Federal Share.--
       [The Federal share of assistance under this section shall 
     be not less than--
       (1) 75 percent of the net eligible cost of repair, 
     restoration, reconstruction, or replacement carried out under 
     this section;
       (2) 100 percent of associated expenses described in 
     subsections (f)(1) and (f)(2); and
       (3) 75 percent of associated expenses described in 
     subsections (f)(3), (f)(4), and (f)(5).]
       (1) Except as provided in paragraph (2) of this subsection, 
     the Federal share of assistance under this section shall be 
     not less than 75 percent of the eligible cost of repair, 
     restoration, reconstruction, or replacement carried out under 
     this section.
       (2) The President shall publish rules to reduce the Federal 
     share of assistance under this section for the repair, 
     restoration, reconstruction, or replacement of any eligible 
     public or private nonprofit facility that has previously 
     received significant disaster assistance under this Act on 
     multiple occasions.
       (B) Contributions and Federal Share
       [(e) Net Eligible Cost.--
       [(1) General rule.--
       [For purposes of this section, the cost of repairing, 
     restoring, reconstructing, or replacing a public facility or 
     private nonprofit facility on the basis of the design of such 
     facility as it existed immediately prior to the major 
     disaster and in conformity with current applicable codes, 
     specifications, and standards (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, at a minimum, be treated as the net 
     eligible cost of such repair, restoration, reconstruction, or 
     replacement.
       [(2) Special rule
       [In any case in which the facility being repaired, 
     restored, reconstructed, or replaced under this section was 
     under construction on the date of the major disaster, the 
     cost of repairing, restoring, reconstructing, or replacing 
     such facility shall include, for purposes of this section, 
     only those costs which, under the contract for such 
     construction, are the owner's responsibility and not the 
     contractor's responsibility.
       [Sec. 406] (e) Eligible cost.--
       (1) Determination--
       (A) In General.--For the purposes of this section, the 
     President shall estimate the eligible cost of repairing, 
     restoring, reconstructing, or replacing a public facility or 
     private nonprofit facility--
       (i) on the basis of the design of the facility as the 
     facility existed immediately before the major disaster; and
       (ii) in conformity with current applicable codes, 
     specifications, and standards (including floodplain 
     management and hazard mitigation criteria required by the 
     President or under the Coastal Barrier Resources Act (16 
     U.S.C. 3501 et seq.)).
       (B) Cost estimation procedures.--Subject to paragraph (2), 
     the President shall use the cost estimation procedures 
     developed under paragraph (3) to make the estimate under 
     subparagraph (A).
       (2) Modification of eligible cost.--If the actual cost of 
     repairing, restoring, reconstructing, or replacing a facility 
     under this section is more than 120 percent or less than 80 
     percent of the cost estimated under paragraph (1), the 
     President may determine that the eligible cost shall be the 
     actual cost of the repair, restoration, reconstruction, or 
     replacement.
       (3) Expert panel.--Not later than 18 months after the date 
     of enactment of this paragraph, the President, acting through 
     the Director of the Federal Emergency Management Agency, 
     shall establish an expert panel, which shall include 
     representatives from the construction industry, to develop 
     procedures for estimating the cost of repairing, restoring, 
     reconstructing, or replacing a facility consistent with 
     industry practices.
       (4) Special rule.--In any case in which the facility being 
     repaired, restored, reconstructed, or replaced under this 
     section was under construction on the date of the major 
     disaster, the cost of repairing, restoring, reconstructing, 
     or replacing the facility shall include, for the purposes of 
     this section, only those costs that, under the contract for 
     the construction, are the owner's responsibility and not the 
     contractor's responsibility.

     SEC. 204. FEDERAL ASSISTANCE TO HOUSEHOLDS

     42 U.S.C. [SEC. 408. TEMPORARY HOUSING ASSISTANCE

       [(a) Provision of Temporary Housing--
       [(1) In general--
       [The President may--
       [(A) provide, by purchase or lease, temporary housing 
     (including unoccupied habitable dwellings), suitable rental 
     housing, mobile homes, or other readily fabricated dwellings 
     to persons who, as a result of a major disaster, require 
     temporary housing; and
       [(B) reimburse State and local governments in accordance 
     with paragraph (4) for the cost of sites provided under 
     paragraph (2).
       [(2) Mobile home site--
       [(A) In general--
       [Any mobile home or other readily fabricated dwelling 
     provided under this section shall whenever possible be 
     located on a site which--
       [(i) is provided by the State or local government; and
       [(ii) has utilities provided by the State or local 
     government, by the owner of the site, or by the occupant who 
     was displaced by the major disaster.
       [(B) Other sites--
       [Mobile homes and other readily fabricated dwellings may be 
     located on sites provided by the President if the President 
     determines that such sites would be more economical or 
     accessible than sites described in subparagraph (A).
       [(3) Period--
       [Federal financial and operational assistance under this 
     section shall continue for not longer than 18 months after 
     the date of the major disaster declaration by the President, 
     unless the President determines that due to extraordinary 
     circumstances it would be in the public interest to extend 
     such 18-month period.
       [(4) Federal share--
       [The Federal share of assistance under this section shall 
     be 100 percent; except that the Federal share of assistance 
     under this section for construction and site development 
     costs (including installation of utilities) at a mobile home 
     group site shall be 75 percent of the eligible cost of such 
     assistance. The State or local government receiving 
     assistance under this section shall pay any cost which is not 
     paid for from the Federal share.
       [(b) Temporary Mortgage and Rental Payments.--
       [The President is authorized to provide assistance on a 
     temporary basis in the form of mortgage or rental payments to 
     or on behalf of individuals and families who, as a result of 
     financial hardship caused by a major disaster, have received 
     written notice of dispossession or eviction from a residence 
     by reason of a foreclosure of any mortgage or lien, 
     cancellation of any contract of sale, or termination of any 
     lease, entered into prior to such disaster. Such assistance 
     shall be provided for the duration of the period of financial 
     hardship but not to exceed 18 months.
       [(c) In Lieu Expenditures.--
       [In lieu of providing other types of temporary housing 
     after a major disaster, the President is authorized to make 
     expenditures for the purpose of repairing or restoring to a 
     habitable condition owner-occupied private residential 
     structures made uninhabitable by a major disaster which are 
     capable of being restored quickly to a habitable condition.
       [(d) Transfer of Temporary Housing--
       [(1) Direct sale to occupants--
       [Notwithstanding any other provision of law, any temporary 
     housing acquired by purchase may be sold directly to 
     individuals and families who are occupants of temporary 
     housing at prices that are fair and equitable, as determined 
     by the President.
       [(2) Transfers to states, local governments, and voluntary 
     organizations--
       [The President may sell or otherwise make available 
     temporary housing units directly to States, other 
     governmental entities, and voluntary organizations. The 
     President shall impose as a condition of transfer under this

[[Page S2517]]

     paragraph a covenant to comply with the provisions of section 
     308 requiring nondiscrimination in occupancy of such 
     temporary housing units. Such disposition shall be limited to 
     units purchased under the provisions of subsection (a) and to 
     the purposes of providing temporary housing for disaster 
     victims in major disasters or emergencies.
       [(e) Notification--
       [(1) In general--
       [Each person who applies for assistance under this section 
     shall be notified regarding the type and amount of any 
     assistance for which such person qualifies. Whenever 
     practicable, such notice shall be provided within 7 days 
     after the date of submission of such application.
       [(2) Information--
       [Notification under this subsection shall provide 
     information regarding--
       [(A) all forms of such assistance available;
       [(B) any specific criteria which must be met to qualify for 
     each type of assistance that is available;
       [(C) any limitations which apply to each type of 
     assistance; and
       [(D) the address and telephone number of offices 
     responsible for responding to--
       [(i) appeals of determinations of eligibility for 
     assistance; and
       [(ii) requests for changes in the type or amount of 
     assistance provided.
       [(f) Location--
       [In providing assistance under this section, consideration 
     shall be given to the location of and travel time to--
       [(1) the applicant's home and place of business;
       [(2) schools which the applicant or members of the 
     applicant's family who reside with the applicant attend; and
       [(3) crops of livestock which the applicant tends in the 
     course of any involvement in farming which provides 25 
     percent or more of the applicant's annual income.]

     SEC. 408. FEDERAL ASSISTANCE TO HOUSEHOLDS.

       (a) General Authority.--In accordance with this section, 
     the President, in consultation and coordination with the 
     Governor of an affected State, may provide financial 
     assistance, and, if necessary, direct services, to disaster 
     victims who--
       (1) as a direct result of a major disaster have necessary 
     expenses and serious needs; and
       (2) are unable to meet the necessary expenses and serious 
     needs through other means, including insurance proceeds or 
     loan or other financial assistance from the Small Business 
     Administration or another Federal agency. Inability to meet 
     necessary expenses and serious needs through loan or other 
     financial assistance from the Small Business Administration 
     or another Federal agency shall not apply to temporary 
     housing or rental assistance under subsection (c)(2) or to 
     permanent housing construction under subsection (c)(4) of 
     this section.
       (b) Housing Assistance--
       (1) Eligibility.--The President may provide financial or 
     other assistance under this section to households to respond 
     to the disaster-related housing needs of households that are 
     displaced from their predisaster primary residence or whose 
     predisaster primary residence are rendered uninhabitable as a 
     result of damage caused by a major disaster.
       (2) Determination of Appropriate Types of Assistance.--The 
     President shall determine appropriate types of housing 
     assistance to be provided to disaster victims under this 
     section based on consideration of cost effectiveness, 
     convenience to disaster victims, and such other factors as 
     the President considers to be appropriate. One or more types 
     of housing assistance may be made available, based on the 
     suitability and availability of the types of assistance, to 
     meet the needs of disaster victims in a particular disaster 
     situation.
       (c) Types of Housing Assistance--
       (1) Federal assistance under this subsection shall continue 
     no longer than 18 months after the date of the major disaster 
     declaration by the President, unless the President determines 
     that it is in the public interest to extend such 18-month 
     period.
       (2) Temporary Housing--
       (A) Financial Assistance--
       (i)--In general.--The President may provide financial 
     assistance under this section to households to rent alternate 
     housing accommodations, existing rental units, manufactured 
     housing, recreational vehicles, or other readily fabricated 
     dwellings.
       (ii) Amount.--The amount of assistance under clause (i) 
     shall be based on the sum of--
       (I) the fair market rent for the accommodation being 
     provided; and
       (II) the cost of any transportation, utility hookups, or 
     unit installation not being directly provided by the 
     President.
       (B) Direct Assistance.--
       (i) In General.--The President may direct provide under 
     this section housing units; acquired by purchase or lease, to 
     households who, because of a lack of available housing 
     resources, would be unable to make use of the assistance 
     provided under subparagraph (A).
       (ii) Collection of Rental Charges.--After the expiration of 
     the 18-month period referred to in clause (ii), the President 
     may charge fair market rent for the accommodation being 
     provided.
       (3) Repairs.--
       (A) In general.--The President may provide financial 
     assistance for the repair of owner-occupied primary 
     residents, utilities, and residential infrastructure (such as 
     private access routes) damaged by a major disaster to a 
     habitable or functioning condition.
       (B) Emergency Repairs.--To be eligible to receive 
     assistance under subparagraph (A), a recipient shall not be 
     required to demonstrate that the recipient is unable to meet 
     the need for the assistance through other means, except 
     insurance proceeds, if the assistance--
       ``(i) is used for emergency repairs to make a private 
     primary residence habitable; and
       ``(ii) does not exceed $5,000, as adjusted annually to 
     reflect changes in the Consumer Price Index for Urban 
     Consumers as reported by the Bureau of Labor Statistics of 
     the Department of Labor.
       ``(4) Permanent Housing Construction.--The President may 
     provide financial assistance or direct assistance under this 
     section to households to construct permanent housing in 
     insular areas outside the continental United States and in 
     other remote locations in cases in which--
       ``(A) no alternative housing resources are available; and
       ``(B) the types of temporary housing assistance described 
     in paragraph (c)(l) are unavailable, infeasible, or not cost 
     effective.
       ``(d) Terms and Conditions Relating to Housing Assistance--
       ``(l) Sites--
       ``(A) In General.--Any readily fabricated dwelling provided 
     under this section shall, whenever practicable, be located on 
     a site that--
       ``(i) is provided by the State or local government; and
       ``(ii) is complete with utilities provided by the State or 
     local government, by the owner of the site, or by the 
     occupant who was displaced by the major disaster.
       ``(B) Sites Provided by the President.--Readily fabricated 
     dwellings may be located on sites provided by the President 
     if the President determines that the sites would be more 
     economical or accessible.
       ``(2) Disposal of Units--
       ``(A) Sale to occupants--
       ``(i) In general.--Notwithstanding any other provision of 
     law, a temporary housing unit purchased under this section by 
     the President for the purpose of housing disaster victims may 
     be sold directly to the household who is occupying the unit 
     if the household needs permanent housing.
       ``(ii) Sales price.--Sales of temporary housing units under 
     clause shall be accomplished at prices that are fair and 
     equitable.
       ``(iii) Deposit of proceeds.--Notwithstanding any other 
     provision of law, the proceeds of a sale under clause (i) 
     shall be deposited into the appropriate Disaster Relief Fund 
     account.
       ``(iv) Use of GSA services.--The President may use the 
     services of the General Services Administration to accomplish 
     a sale under clause (i).
       ``(B) Other Methods of Disposal--
       ``(i) Sale.--If not disposed of under subparagraph (A), a 
     temporary housing unit purchased by the President for the 
     purpose of housing disaster victims may be resold.
       ``(ii) Disposal To Governments and Voluntary 
     Organizations.--A temporary housing unit described in clause 
     (i) may be sold, transferred, donated, or otherwise made 
     available directly to a State or other governmental entity or 
     to a voluntary organization for the sole purpose of providing 
     temporary housing to disaster victims in major disasters and 
     emergencies if, as a condition of the sale, transfer, 
     donation, or other making available, the State, other 
     governmental agency, or voluntary organization agrees--
       ``(I) to comply with the nondiscrimination provisions of 
     section 308; and
       ``(II) to obtain the maintain hazard and flood insurance on 
     the housing unit.
       ``(e) Financial Assistance to Address Other Needs--
       ``(l) Medical, Dental, and Funeral Expenses.--The 
     President, in consultation and coordination with the Governor 
     of the affected State, may provide financial assistance under 
     this section to a household adversely affected by a major 
     disaster to meet disaster-related medical, dental, and 
     funeral expenses.
       ``(2) Personal Property, Transportation, and Other 
     Expenses.--The President, in consultation and coordination 
     with the governor of the affected State, may provide 
     financial assistance under this section to a household 
     described in paragraph (l) to address personal property, 
     transportation, and other necessary expenses or serious needs 
     resulting from the major disaster.
       (f) State Role.--The President shall provide for the 
     substantial and ongoing involvement of the affected State in 
     administering assistance under this section.
       (g) Maximum Amount of Assistance.--The maximum amount of 
     financial assistance that a household may receive under this 
     section with respect to a single major disaster shall be 
     $25,000, as adjusted annually to reflect changes in the 
     Consumer Price Index for all Urban Consumers published by the 
     Department of Labor.
       (h) Issuance of Regulations.--The President shall issue 
     rules and regulations to carry out the program established by 
     this section, including criteria, standards, and procedures 
     for determining eligibility for assistance.

     SEC. 204(B). CONFORMING AMENDMENT.

     SEC. 502. FEDERAL EMERGENCY ASSISTANCE.

       (a) Specified.--
       In any emergency, the President may--

                           *   *   *   *   *

       (6) provide [temporary housing] assistance in accordance 
     with section 408 [42 U.S.C. Sec. 5174]; and

     SEC. 204(C). REPEAL OF INDIVIDUAL AND FAMILY GRANT PROGRAMS.

     42 U.S.C. [SEC. 411. INDIVIDUAL AND FAMILY GRANT PROGRAMS.

       [(a) In General.--
       The President is authorized to make a grant to a State for 
     the purpose of making grants to individuals or families 
     adversely affected by a major disaster for meeting disaster-
     related necessary expenses or serious needs of such 
     individuals or families in those

[[Page S2518]]

     cases where such individuals or families are unable to meet 
     such expenses or needs through assistance under other 
     provisions of this Act or through other means.
       [(b) Cost Sharing.--
       (1) Federal share.--
       The Federal share of a grant to an individual or a family 
     under this section shall be equal to 75 percent of the actual 
     cost incurred.
       (2) State contribution.--
       The Federal share of a grant under this section shall be 
     paid only on condition that the remaining 25 percent of the 
     cost is paid to an individual or family from funds made 
     available by a State.
       [(c) Regulations.--
       [The President shall promulgate regulations to carry out 
     this section and such regulations shall include national 
     criteria, standards, and procedures for the determination of 
     eligibility for grants and the administration of grants under 
     this section.
       [(d) Administrative Expenses.--
       A State may expend not to exceed 5 percent of any grant 
     made by the President to it under subsection (a) for expenses 
     of administering grants to individuals and families under 
     this section.
       [(e) Administration Through Governor.--
       The Governor of a State shall administer the grant program 
     authorized by this section in the State.
       [(f) Limit on Grants to Individual.--
       No individual or family shall receive grants under this 
     section aggregating more than $10,000 with respect to any 
     single major disaster. Such $10,000 limit shall annually be 
     adjusted to reflect changes in the Consumer Price Index for 
     All Urban Consumers published by the Department of Labor.]

     SEC. 205. REPEALS.

     SEC. 205(A). ASSOCIATED EXPENSES.

       [(f) Associated Expenses.--
       For purposes of this section, associated expenses include 
     the following:
       [(1) Necessary costs.--
       Necessary costs of requesting, obtaining, and administering 
     Federal assistance based on a percentage of assistance 
     provided as follows:
       (A) For an applicant whose net eligible costs equal less 
     than $100,000, 3 percent of such net eligible costs,
       (B) For an applicant whose net eligible costs equal 
     $100,000 or more but less than $1,000,000, $3,000 plus 2 
     percent of such net eligible costs in excess of $100,000.
       (C) For an applicant whose net eligible costs equal 
     $1,000,000 or more but less than $5,000,000, $21,000 plus 1 
     percent of such net eligible costs in excess of $1,000,000.
       (D) For an applicant whose net eligible costs equal 
     $5,000,000 or more, $61,000 plus \1/2\ percent of such net 
     eligible costs in excess of $5,000,000.
       [(2) Extraordinary costs--
       Extraordinary costs incurred by a State for preparation of 
     damage survey reports, final inspection reports, project 
     applications, final audits, and related field inspections by 
     State employees, including overtime pay and per diem and 
     travel expenses of such employees, but not including pay for 
     regular time of such employees, based on the total amount of 
     assistance provided under sections 5170b, 5170c, 5172, 5173, 
     5192, 5193 of this title in such State in connection with the 
     major disaster as follows:
       (A) If such total amount is less than $100,000, 3 percent 
     of such total amount,
       (B) If such total amount is $100,000 or more but less than 
     $1,000,000, $3,000 plus 2 percent of such total amount net 
     eligible cost in excess of $100,000,
       (C) If such total amount is $1,000,000 or more but less 
     than $5,000,000, $21,000 plus 1 percent of such total amount 
     net eligible cost in excess of $1,000,000,
       (D) If such total amount is $5,000,000 or more, $61,000 
     plus \1/2\ percent of such total amount net eligible cost in 
     excess of $5,000,000.
       [(3) Costs of National Guard--
       The costs of mobilizing and employing the National Guard 
     for performance of eligible work.
       [(4) Costs of prison labor--
       The costs of using prison labor to perform eligible work, 
     including wages actually paid, transportation to a worksite, 
     and extraordinary costs of guards, food, and lodging.
       [(5) Other labor costs--
       Base and overtime wages for an applicant's employees and 
     extra hires performing eligible work plus fringe benefits on 
     such wages to the extent that such benefits were being paid 
     before the disaster]

     SEC. 205(B) COMMUNITY DISASTER LOANS.

     42 U.S.C. [SEC. 417. COMMUNITY DISASTER LOANS.

       [(a) The President is authorized to make loans to any local 
     government which may suffer a substantial loss of tax and 
     other revenues as a result of a major disaster, and has 
     demonstrated a need for financial assistance in order to 
     perform its governmental functions. The amount of any such 
     loan shall be based on need, and shall not exceed 25 per 
     centum of the annual operating budget of that local 
     government for the fiscal year in which the major disaster 
     occurs. Repayment of all or any part of such loan to the 
     extent that revenues of the local government during the three 
     full fiscal year period following the major disaster are 
     insufficient to meet the operating budget of the local 
     government, including additional disaster-related expenses of 
     a municipal operation character shall be canceled.
       [(b) Any loans made under this section shall not reduce or 
     otherwise affect any grants or other assistance under this 
     Act.]

     SEC. 205(C) SIMPLIED PROCEDURE.

       [(Sec. 422. SIMPLIFIED PROCEDURE.
       [If the Federal estimate of the cost of--
       (1) repairing, restoring, reconstructing, or replacing 
     under section 406 any damaged or destroyed public facility or 
     private nonprofit facility,
       (2) emergency assistance under section 403 or 502, or
       (3) debris removed under section 407,

     is less than $35,000, the President (on application of the 
     State or local government or the owner or operator of the 
     private nonprofit facility) may make the contribution to such 
     State or local government or owner or operator under section 
     403, 406, 407, or 502, as the case may be, on the basis of 
     such Federal estimate. Such $35,000 amount shall be adjusted 
     annually to reflect changes in the Consumer Price Index for 
     All Urban Consumers published by the Department of Labor.]
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