65
. ..
1
governments for the purpose of carrywg out the
2
provisions of paragraph (4).
3
(b) EmergencYlI'ork performed under subsection (a)
4
(4) of this 8ecfi:0l7 8ha17 not preclude Fedeml assistance under
5
any other Sl'ctiofl of this A ct.
6
(c) Per/em! agencies n/(/y he )'cimhlll'.'wd jot' e.?;pendi-
7
tll1'('S muler sect1'0i1 :20:]((1) fro/ll funds rij)lJt'ojJrioted for the
8
zmrposes of this Act. Any (/Iuds receivcd by Per/eral agen-
9 cies as reirnlJllJ'sement for services
-
OJ'
supplies fllrnished unda
10
the authority of this section 8ha17 be dCjJOsited to thc credit of
11
the oppJ'op"iatiofl
12 sllch services
13
01'
01'
appi'Ol)J'iations c1I1'l'enfl.'1 (Ivailahle for
supplies.
(d) The Federal Government shaT.' not be liable for
14 any claim based upon the e:rercisc or lJcrforlllance or the
15
failm'e to
16
or duty on the lla}'t of a Federal agency or all employee of
C:TC}'CJ.8C
OJ'
j)cr/orm a di.'?cl'ctiOJUl1'.'1 function
17 the Federal Governml'ntin carrying Ollt tlw ]}f'onisioJls of this
18
section.
19
(e) Any Federal agency designated by the President
20
to exercise authority under this Act may establish such
21
special groups, interdepartmental
22
appropriate to a,'3sist in cmTyillg out the jJrovisiolls of
23
law relating to FedeTal dis((''3tel' preparedness (lnd assistance,
01'
othef'v'isc,
(IS
it deems
24 and the funds of (lny such arlency may be uti7ized for the
25 necessary e;rpC118es of (lny ,r;rOIl Jl so eRt((blished.
8.3619-5
66
1
(f) In carrying out the purposes of this Act, any F ed-
2
eraZ agency is authorized to accept and utilize the services or
3
facilities of any State or local government, or of any agency,
4
office, or employee thereof, Il'ith the consent of such govern-
5 ment. Any Federal agency, in performing any activities
6
under this section, is authorized to appoint and fix the com-
7 pensation of such temporary personnel as may be necessary,
8 without regard to the provisions of title 5, United Staies Code,
9
governing appointment8 in the competiNve service, and without
10
regard to the provisions of chapter 51 and subchapter III
11
of such title relating to classification and General Schedttle
12
pay rates, to employ experts and consultants in accordance
13
with the provisions of section 3109 of such title, and to incur
14
obligations on behalf of the United States by contracf
15
wise for the acquisition, rental, or hire of equipment, services,
16
materials, and supplies for shipping, drayage, travel, and
17
communication, and for the supervision and administration of
]8
such activities. Such obligations, including obligations aris;11.fJ
19
out of the temporary employment of additional personnel,
20
may be incurred by an agency in such amount as may be
21
made available to it by the President.
01' OtlW1'-
22
(gJ In the interest of providing maximum mobilization
23
of Federal assistance under this Act, the President is au-
24
thorized to coordinate in such manner as he may determiru'
,
p
67
1
the activities of Federal agencies in providing dis({ster assist-
2
ance. The President may direct any Fpderal agency to utilize
3
itB available personnel, equipment, s·llpplies, facilities, and
4
other resources in accordance with the authori(1/ hf'rein con-
5 tained. The President may prpscrihe sl1ch rllle8 and regllla-
6 tion8 as may be JleceSsar,1/ and 7Jr07)PI' to carry out any of the
7
pJ'Ol'isiol1s of this Act, aJ/d he may e.1'acise any power or
8
({lIthorily confared on him by any section of this Act either
9 r/il'('ctly
I
throllgh slI('h F('r/eml agency as he may d('.r.;ignate.
10
(h) The P}'esid('nt, ({dill,? thl'OlIgh th(' O{fi('l' of Em('/'-
11
gel1cy Preparrdness, shall (,oi/duct periodic rer1('lI's (at. lertRt
12
mm ually) of the actirities of Fedaal and Statl' dl'partml'nts
13
or agencies providing dism;il'r assistancl', in ordl'r to
14
ma;rimwn coordination of such program.'l, and to l'l'aluate
15
progress b('in,? lIwde in th(' development of ]?ed('ml, State,
1G
and local preparednNls to cope with major disastns.
17
USE OF LOCAl. FIRMS AND INDlVIDUALS
18
/
OJ'
SEC •
08.'111/'('
.204. In the e:cpenditure of Fed('ral funds for debris
19
cle({rance, distrihution of Rllpplies, reconstrnction, and oth('J'
20
major disaster assistance ({ctivities which may be carried out
21
by contract with private organizations, {il'ms, or individuals,
22
P/'(,fe1'ence shall be rli1'('n, to the e.Ttenf fensihle and pmrti.ca-
2:~
ble, to those organizations, firms, and individual.;;; who reside
2-1
OJ'
do business primarily in the di/wsfer area.
'.
68
1
FEDERAL GRANT-IN-AID PROGRAMS
2
SEC. 205. Any Pedel'al agenc.tJ chal'.qed with the wbnin-
3
istration of a Federal grant-in-aid pl'ug}'((mis authurized, if
4
80
requested by the applicant State or local authorities, to
5 modify or u'aive, fol' the dUl'()tion of a m((:i o/' dis((stel' pToclrt6
matiml, such condif'ions fOi' ossista~lcc rls wou7d othCl'wise pJ'e-
7
vent the giving of assistance /lnde1' SHell. l)1'OfP'ml1s if the
8
inabi1ity to meet snch conditions is a l'esnlt of the disostCl'.
STATE DISASTER PLANS
9
10
SEC. 206. (0) The Pre.'iident is authol'i.;J>d to IJ1'Oridc
11
assistance to the Strifes in developing cOJnj)l'chcJ1.'iire IJlrl11s
12
and 111'acticable progJ'{lms for preparation ((g((inst major dis-
13
asters, and for relief rmrl assistcmre fo/' indi.riduals, busi-
14 nesses, and local gorennnents follolf,ing S/lrh disastCl'S. Such
15
plo]1s should include lOJl.r;-NIIIge
16
a.'i.'listance 1,lans for scrimls7y da1H({[JCJI
17
and private facilities.
/'('('Ol'(,/'Y
and l'ecOJ1stl'uctioll
01'
destroyed 7J11l,Zic
18
(b) The President is autlwl'izrd to ))/(/kr fJl'(Jnts of not,
19
more than $250,000 to any State, lIpon appZimtioll thCl'efol',
20
for not to exceed 50 ller centum of the cost of developing such
21
plans and programs.
(c) Any State desiring (lssi.<.;frtnce under this section
22
shall designate OJ' Cl'eatc ((n a.r;cw,II which is sprcia17y qllali-
fi ed
to IJlan and admini:·;ter such {/ diM/stet' ],clief
])1'0[11'((111,
69
1
and shall, through such agcncy, submit a State plan to the
2
President, which shall-
3
1
i
(
/
r-
l
I
(f
cmnzn'chensil'c (lnd detailed State
4
IJr'ogr'arn for lrr'cl)(lI'ation against, andl'elief following, a
5
major disaster, including provis'lons fm' emergency and
6
long-term assistallce to indiridlwls. businesses, and local
7
governments; and
8
(.2 ) include l)rol)ision for the appointmellt of a State
9
coordinating officer to act in coopemtion with the Ped-
10
eJ'al coordinating officer appointed muler section 201 of
11
this Act.
12
(d) From time to timc the nil'ccto/' shall make a 1'epo1't
IB to the PI'esident, for submission to the Con.fJl'ess, containinrl
14
his 1'ecornmendatioll8 fOI' IJJ'orlrams for thc Fcderal role
15
in theimplcmentation and fundinf} of comprchensire disastcr'
16
1'elicf plans, and such otherl'c('ommendatioIl8 relating to
17
the F edcral role in disaster relief activities as he deems
18
warranted.
19
,
(1) sct for,th
(c) Thc Prcsident i.s authorizcd to mak'e
[p'al/is
not to
~o
c./,cccd ,$25,000 per
~1
c.t'cccd 50
22
proving, maintaining, and lIpdat'ing that State's disaster
23
assistance plans.
PCI'
W/IIIIUI
to an.'! 8tatcin an amount I/ot to
centll tIL of the cost for the purposc of im-
70
1
USE AND COORDINATION OF RELIEF ORGANIZATIONS
2
3
HEC.
207. (a) In providing rei ie/ and assistance fol-
lowing a majoi' disaster, tlte Director may utilize, with thei'r
4 consent, the pet'sonlwi and facilities of tlte Ame}'ican National
5
Red Oross, the Salvation Anny, the .ilIennoni·te Bow'd of Mis-
6 sions and Oha}'ities, and other relief
01'
disaster assistance
7
orgallizatiolls, in the distl'ibutioll of mediciue, food, supplies,
8
01'
otlter items, all(i in tlte restoration, rehabilitation,
O}'
re-
9 constrllction of community services and essential facilities,
10 whenevel' the Director (iud.s that such Iltitizationis necessary.
11
(b) The Director is lluthorized to entainto agreements
12
with the American National Red 0 ross and otlla relief
13
01'
disasta assistance organizations under which the disaster
14 relief activities of such organizations may be coordinated
15
by the Federal coordinating officer whenever such organiza-
16
tiollS are ellgagedin fJ'roviding relief during and aftel' a
17
major disaster. Any such agl'eement shall include provisions
18 conditioning use of the facilities of the Office of Emergellcy
19 Preparedness and the services of the coordinating officer upon
20 compliance 1.vith regulations promulgated by the Dil'ector un21
del' sections ,208 and 209 of this Act, and such othel' I'egula-
22.
tions as the Director may require.
23
24
DUPLICATION OF BENEFITS
SEC.
208. (a) The Dil'ector, in consultation with the
25 head of each Federal agency administering any program pro-
.~.
71
1
viding financial assistance to persons, business concerns, or
2
other entities suffel'ing losses as the result of a major disaster,
3 shall assure that no such person, bwsiness concern, or other'
4
entity (cill receive such assistance with respect to any part
5 of sllch loss
6
7
W5
to which he has received financial assistance
under any other program.
(b) The Director shall aSSUl'e that no person, business
8 concel'll, oj' other entity receives any Federal assistance for
9
an!) part of a loss suffered as the result of a major disaster if
10 such pel'SOIl, concern, or entity l'eceived compensation f/'Om
11
insurance or allY other source for that part of sllch a loss.
12
Partial compensation for a loss or a part of a loss resulting
13
from a majo/' disaster shall not preclude additional Pederal
14
llssistance for any part of such a loss not compensated
15
otherwise.
16
(c) TVhenever the Director determines (1) that a per-
17 son, business concel'n,
,r .'
j.
01'
other entity has received assist-
18
ance ll1ulel' this Act for a loss and that such person, busi-
19
ness concern or other entity received assistance for the same
20 loss trom another source, and (2) that the amount received
21
frol1t all sources e;yceeded the amount of the loss, he shall
22
direct such pel'son, business concern, or other entity to pay
23
to the Treasury an amount, not to e,rceed the amount of
24
Federal assistance received, sufficient to l'eimburse the Fed-
.....1-,
eJ'at (}ovcJ'iI1nenl for that
1
IHIi'l (j/
thc ((.'isistance which he
2 deems exces8ice.
NONDISCRIMINATION IN ])ISASTER ASSISTANCE
3'
SEC.
4
209. (a) The Director shall issue, mltl may alter'
5
and amend, such regulations as 11'wY be necessary for the guid-
6
ance of personnel carl'yinfJ out cmergency 1~elief function.';
I
7
at the site of a rnajol' disaster. Such Y'eglllatiOJ/.'; shall i'nclllde
!
8
IJl'ovisions for insllring that the distribution of sliliplies, the
I
9
processing of applications, and other relief and assistance
i
I
I
10 activities shall be accoJnpli81wd in
rul
equitable tl/ulimpal'lial
"
,!
11 manHcr,
withollt
discl'illl illation 011 the gl'0lmd8 ofmce, color,
12 religion, nationality,
."i(',1' ,
age, OJ' c('onomic status 111'iol' to
,
13
14
a major disaster.
)
(b) As a condition of participation in the distribution
15 of assistance or supplies llnder section 207, r~elief organiza16' tionsshall be
17
1'eqlti1~ed to cornply 11'ith regulations relating
toi!ondiscrimination promulgated by the Dh'eciol', and such
18 othel' regulations alJplicable to acticities within a major dis19 aster area as he deents necessary fo/' the effective coordina20
21
tion of 1~elief efforts.
.JDI'lSOln'PERSONNEL
22
SEC. 210. The Director is authorized to assign advisory
23
personnel to the chief executive officer~ of any State or local
24 government within a major disaster area, upon request by
25 such officer, whenevet the Dir'ecfor determines that such
....
73
1
assignment is desirable in order 10 insure full u f il izatioJ/ of
2
relief and assistance resources and progrf!ms.
3
4
DISASTER TV ARNINGS
SEC.
211. The President is authorized to utilize OJ' to
5 nw ke available to FedeJ'{{l, State, alld loc((l afJellcies the fa6 cililies of the cieil defense CO/ll1J/llllicatioliS system established
7
and maintained pu rSIl(1II1 to section 201 (c) of the Pedeml
8 Civil Defense Act of 1.9/;0, as amended (/50 U.S.C. afiJI.
9 2281 (c)), for the InH']JOse of providing neer/ed //'arnin,fJ to
10
governmental authO/'itie8 and the cieiliall ])()pul(ltion in areas
11 endaTtgend by imminent major disasters.
12
PART B-EMERGENCY BELIEF
13
PREDISASTER ASSISTANCE
14
SEC.
(l
III
aim' dis-
15
aster, the President is authorized. without declaring a maJo;,
16
disaster, to utilize Federal reSOIl/'ces
17
assistance to any State to assist sHch State
18
ern/llent thel'eof in circumstances /I'hich c7eal'ly indicate the
19
imminellt occurrence of a majoJ' disaster.
20
21
,
221. To avert or lessen the effects of
1'1/
FrOl~idinfJ disaster
Oi'
allY local gov-
EMERGENCY COMlIIUNIC.i1'IONS
SEC.
222. The Director;s (luthoJ';zed to establish emcr-
22
gency communications in any major disaster area in order
23
to carry out the functions of his office, and to make 811ch
24
communications avai7able to Stoic and loca7 fJovermnent
25 officials and other per80ns a.s he deems appropriate.
74
1
2
Eil-'IERGENCY PUBLIC TRANSPORTATION
SEC. 223. The Director is authorized to provide public
3 transportation service to meet emcrgency needs ill a major
4 disaster area. Such service will provide tl'alli'iportation to
5
governmental offices, i:SUpp1!J centers, i'itol'es, post offices,
6 schools, major employment cell tel's, lIltd i'iuch other places ai'i
7
may be necessw'// in ordeJ' to enable the cOJlUJlUllity to resume
8
its normal pattei'll of life as soon as pos8ible.
9
DEBRIS REJ101'AL GRANTS
10
SEC. 224. The Presidellt, lvheneveJ' he determines it to
11
be in the public in tel' est, is authorized to make grants to any
12
State or 70ca l fjuvel'nment for the purpose of removing debris
13
Oil privatel!J owned lund8 Of' wedel'S as a result of a major
14
disaster, and is authorized to make payments thl'ou.r;h sllch
15
State or local gorcJ'mncJlt fol' the removal of debris from
16
community areas tchich may include the private property of
17
an individual. No beJlcfits tcill be available under this sec-
18
lion unless sllch State or local government arl'anges un-
19
conditional authorization for J'emoval of debris from such
20
property and agrees to indemnify the Federal GoveJ'nmenl
21
a,fjainst any clain/'s aJ'ising from such debris removal.
22
23
FIRE SUPPRESSION GRANTS
SEC. 225. The PJ'esidcntis authorized to provide assist-
24
ance, including ,fjrants, to
25
allY {iJ'e on publicly or fJl'irate1y otellcd fOJ'est or grassland
011.'1
State for the suppression of
. , !
75
r
which threatens such destruction as Lcould constitute a major
2
disaster.
3
TEll'!PORARY HOUSING ASSISTANCE
SEC. 226. (a) The Director is authol'ized to provide Oil
4
5 a temporary basis, as pl'escribedin this section, dwelling
6
accommodations for individuals and families lcho, as a result
7 of
II
major disastel', a I'e ill /leed of assistance by (1 )usil/g
8
any unoccupied housing owned by the United States under
9
any program of the Federal (Jovermnent, (2) arranging
10 lcith a local public hOllsiJlg agency
-
...II
1m' llsing
unoccupied pllb-
11
lie lww:5i1lg
12
mobife homcs
13
cha.'1,(! oj' lew.;('. Xutlcitlu.;tllwlill,fJ any othcl' /Ji'oci:siull of latc,
1-1:
(111.'1
1;)
dwelliJ/g...,
1()
dicidlto!s alld falllilies leho al'e ucelljJOllts of such temporw'y
17
W'COltllllOdlitiollS (ft IJI-icc ..; that al'e lail' and equitable. An,l}
18
mobile home
19
11/1
20
!}OVel'JIlncf/f, or by the oll'ner or occupant ol the site U'holl'as
21
di8placed by the maiol' di'sa.stel', /ritlwut chm'[}e to the United
22
;C.:tute8. HOlI'erel', the Director rnay elect to pl'ovide other
.).)
~d
~-+
,)-
-')
Uti
its,
01'
01'
(.'J) acql/iring e.('istill!! dlcellings
other rcadily fabricated
e:tistiJi!! dlcellillgs, mobile homes,
({I
({C(III
ired by pUl'chase
01'
lIIay
UI'
dIU!
llillf}S, by
01'
/Jlll'-
readily lalJl'ieafed
be sold directly to ill-
rmdily fubricated (hcellitl!! ..,hall be placed
site comj)fete with utilities provided by State or local
mOl'e ecoi/omical and acce8sible sites at Fedeml e,l'pellSe wheJ/
he detennines 8uch action to be in the /Jllblic illtCI'e8t,
(b) ~lltcr the initial ninety
£1(///8
of
OCCU/WJ/C//
without
76
1
dwrge, renlal,., shall be c.stabli:-;hcd
/01' :-;uch accollllllodatiolls,
2
under such 'fule:.; and ref/lIlrrliollS
([S
the j)i,'ectoj' may II/'e-
3 s(Tibe, takin,r;tl/to accollllt the fillallcial rC801l 1'('(,8 of the oc4
CUI)(llIt. III C08C of (i1l(lJIciaf hw'(l..;;hip. l'cllta18
5 ]J!'Omi,.,ed, adjusted.
6
01'
/I'aired
0;'
ill
family be l'cqllil'lYl lo
monthly housinf/ (';('I)Cn8e (iJlc7/Ulilif/
be
C()JII-
a 1)(,I'iod '/lot to e,fceed
tu:clce months f!'OlJI the date of OCCIII)(IIIC.'!, but
7 shall auy 811ch indil'idllal
8
/0;'
111((//
cw~e
IIICIl)'
a
(i,l'cd C,I'I}('IISC rc1((/-
({IIY
9 in,r; to the amortization of debt OloiJlrJ
110
Oil
dallwrJcdin a, lIIujor disaster) H.'hich i8
a lWIl8c destl'Oycd
c,.t'ccss of 2':-; Ilel'
10
OJ'
11
centuIn of the monthly income of the OC(,IlII({Jlt 0;' OCCUI)(llItS.
12
ill
(C) The D irectoris furthe,' authorized to J)J'ovidc ({s:.;i:;l-
13
ance on a temporary basis in the form of 11I01't,r;a.r;e or 1'c1ltal
14
payment.s to or on behalf of individual,s and fmnilies who, as
15
a Tesult of financial hardship ca/lsed by a ma,iol' disa.stel',
16
have received lL'ritten notice of dispossession
17
a residence by reason of foreclosure of any nWl't[Jfl,r;e OJ' liell,
18
cancellation of any cOllt)'act of sale,
19
lease, oml
20
l)('l'iod of not to exceed one .'Jcw'
21
period of financial hardship, II'hicherel' is the lcs8(,],. The Di-
22
rector shall, for the purposcs of this subsection aJldin furtha-
23
ance of the purposes of section 240 of this Ad, provide re-
01'
0)'
01'
ceiction f!'Om
tCl'1llinatioJl of
WlY
Wl'ittcll. Such ({8sist{(I/('e ,.,}/([lI be l,roeidcd lol' a
01'
for th(' duratioll of the
24 employment assistance services to individuals 1(,ho orr' W1em25
played as a result of a major disaster.
77
1
PART O-RECOVERY ASSISTANCE
2
SMALL BUSINESS DISASTER LOANS
3
HEC.
231. (a) ill the administration of the disaster loan
4 program under section 7(b) (1) of the Small Business Act,
5 as a'mended (15 U.S.O. 686' (b) ), in the case of PJ'Ol)(,1'ty
6 loss
7
OJ'
damage Tesulting fTom
major disaster as dele'rmined
(J
by the PTesident or a disasteT as determined by the Adminis-
8 tf'{J,toT, the Small Business AdminiBtTation9
t>-
(1) to the extent such loss
01'
damage
1S
not com-
10
pensated fOT by insurance
11
that pad of any loartin excess of $500, cancel the
12
principal of the loan, except that the total amount so
13
canceled shallllot eJ~ceed 7~2,500, and (B) may defer in-
14
terest paymrllts or principal payments, or both, in whole
15
or in 1)(11'/, on sllrh loan dm'ing the first three years of
16
the [am of the looll without regard to the ability of the
17
bOJ'J'Ower to nwke sllch payments~'
18
19
20
21
22
23
24
25
01'
otherwise, (A) shall,
011
(2) may malle allY loan for the repair, Tehabihtntioll,
OJ'
l'e]Jlacement of lJJ'Operty damaged 01' destl'oyed,
Icithout l'erJard to lchethel' the required financial assistance is otherwise al'ailable from prit'afe sources; and
(8) in the case of the total destl'1lCtiOl1 of, or
substantial 1,,'01,el'ty drmwge to, a home or business CO)7cern, may re(inrmre auy 11101'trJage
In,r; a,r;aiJist the rlrsli'Oyrd
01'
OJ'
other liens outsta17d-
r/mlla.r;ed 7,,.opr)'t.'! if sllrh
78
1
refinancing is for thp repail', rPlwbililation, or reI)lace-
2
ment of property damaged
3
such disaster and any such refinancing shall be subject
4
to the provisions of clauses (1) and (2) of thi,~ sub-
5
section.
6
(b) Section 7 of the Small Business Act is amenderl-
7
(1) by revising pam,qraph (2) of 8ub.'lection (b)
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
01'
desfl'oyed as a result of
to read as follows:
"(2) to make slIch loans (eithp]' di1'ectl.11
in cooperation with banks
OJ'
01'
other lpnding institu-
tions through agreements to participate on an immediate or deferred bran's) as the Administration
may determine to be necessary or appropriate, 10
any small businpss concern located l:n an nrea affected by a dl:saster, if the Administration dete1'mznes that the concern has suffpred a substantial
economic inj111'y as a result of such disaster/';
(2) by slril'in,fJ from the .'leconr1 sent(,1Ice of
S1fb-
section (b) the following: "meetin,q the J'equiremenfs of
clause (A) or (B) of para,graph (2) of this su bsection,"; and
(8) by striking from subsection
0) thp following:
"in the case of property loss or damage as thp result of
a disaster which is a 'maior disaster' as defined in section
r
!
79
2( a) of the Act of September 30, 1.950 (42 U.S.C.
1855a(a)),".
2
3
F"IRMERS IlOJIE ADMINISTRATION EJ1ERGENCY LOANS
4
8Er'.23.2. In fli(' administration of thr emert/eney loan
5
jn'o,rlmm Ill/nrl' sllbtitlr C of the rr))lsolinoted Farmers [lome
6 Admini.-:f1'rlfioJl Art of UNi1, as amcJidrn (7 [l.8.r. t,rJ6J7
1D(7), and tlie ruml housing loan progl'mn lIndrl' 8ection
8
:')02 of title
9
TT.1". (~'. 14-1,,-,
AI"- 9) ,111
'1
tile case
0
f Ioss' d
01 amage,
,1',
.
1('Sll
tmIl f rom
a majo1' nisast('r, to p,'oprl'ty, including hous('holn furnish-
11
IIJgs, th(' 8('crptary of ,A.ffl'iculture(1) to the extent 811Ch loss or namagr
lS
not com-
13
pensated for by insurance or othrrll'is(', (A) shall, on
14
that pm't of any loan in excess of $:')00, cancel the prin-
15
cipal of the loan, ('xcept that th(' total amount
1G
crl7ed shall not exceed $2/)00, and (B) may nefer
17
interest payments or prindpal payments, or both, in
]8
II'hole or in 1wrt, on such 10(ln durin,rJ th(' (irst threr
19
yeal'S of the term of the loan without r('gard to thc abilit?!
~()
21
22
')'>
~.)
24
.r·
o[ thr II ollsing Art of 1.94D, a8 ameJln('d (42
10
12
('
(Y
r
fW
can-
of the borrower to make 8uch payments;
(2) may grant any loan for the repair, rchabilitation, or replacement of property dam agcd or destroyen,
without regard to whethpr the required financial assistal1c('. is oth(,1'wis(' (f11ailable from private iWlII'CeS; and
80
1
(3) in the case of the total destruction of, or sub-
2
stantial property damage to a home or business con-
3
cern may refinance any mortgage or other liens outstand-
4
ing aWlinst the destroyed or dama.ged property if such
refillancing 1~8 for the repair, l'ehobilifatiol1 , or replace-
(j
ment of lJl'Oj)er'ty damaged Or' destroyed as a result of
7
such disaster and any sllch refillanciTtfJ shall be sub,iect
8
to the l)rovi8ions of clauses (1) and (8) of this section.
9
10
11
12
I."'oJ
14
1!>
UUXS HE!,])
nr
THE rETEll. INS' .'1J)JIlNISTRATION
SEC. :238. (1) Section 1820( a) (2) of title 38, United
8 tates
(J or/e, is amended to 1'ead as follows:
" (2) subject to specific linl,itatiolls in thi8 chapter,
consent to the modification, with respect to rate of interest, time of payment of pl'incipal or interest or any
portion thereof, security or other provi.sions of any note,
contract, mortgage
i7
18
1!!
20
21
22
2~3
24
25
01'
other instrument securing a loan
which has been guaranteed, insured, made or acquired
under this chapter /'
(2) Section 1820 (f) of title 88, United States Code, is
amended to read as follows:
" (f) TVhenever loss, destruction, or damage to any
residential property securing loan.s guaranteed,
insured,
made, or acquired by the Administrator under this chapter
occurs as the result of a major disaster as determined by the
81
---.
1 Administ1>ator shall (1) provide counseling and such other
2
service to the ov.mer of such property as may be feasible aud
3
shall inform sllch owner concerning the disaster assistance
4
available from other Federal arJencies and from State or
5
local agencies, and (2) pursuant to subsection (a) (2) of
6
this section, extend on an individual case basis such for-
7 bearance
OJ'
indulgence to such owner as the Administrator
8
determines to be 'Lcarranted by the facts of the case and the
9
circumstances of such owner."
10
DISASTER LOAN INTEREST RATES
11
SEG. 234. (a) Any loan made under the authority of
12
sections 231,23.2, 236(b), 237, or 241 of this Act shall bear
13
interest at a rate determined by the Secretary of the Treas-
14
ury, taking into consideration the current average market
15
yield on outstanding marketable obligations of the United
]
6
17
States with remaining periods of maturity of ten to twelve
years less not to exceed 2 per centum per annum.
18
(b) The next to the last sentence of section 7 (b) of the
19
Small Busine8s Act is amended by striking out all that fol-
20
lows "exceed" and inserting in lieu thereof the following:
21
"a rate determined by the Secretary of the Treasury taking
22
into consideration the current average market yield on out-
23
standing marZ'etable obligations of the United States with
24
remaining periods of maturity of ten to twelve years less not
25
to exceed 2 per centum per annum."
8.3619-6
82
1
AGE OF APPLIOANT FOR LOANS
2
SEC. 235. In the administration of any Federal disaster
3
loan program under the authority of sections 231, 23/2, or
4 233 of this Act, the age of any adult loan applicant shall
5
not be considered in detel"1nining whether such loan should
6 be made or the amount of such loan.
7
FEDERAL LOAN ADJUSTMENTS
8
SEC. 236. (a) In addition to the loan exte'nsion au-
9
thority provided in section 12 of the Rural Electrification
10 Act, the Secretary of Agriculture is authorized to adjust and
11
readjust the schedules for payment of principal and interest
12
on loans to borrowers under programs administered by the
13 Rural Electrification Administration, and to extend the
14 maturity date of any such loan to a date not beyond forty
15
years from the date of such loan where he determines such
16
action is necessary because of the impairment of the eco-
17
nomic feasibility of the system, or the loss, destruction, or
18
damage of the property of such borrowers as a result of a
19
major disaster.
20
(b) The Secretary of Housing and Urban Development
21
is authorized to refinance any note or other obligation which
22
is held by him in connection with any loan made by the
23
Department of Housing and Urban Development
24
ecessor in interest,
25
ing fund for liquidating programs established by the I nde-
01'
01'
its pred-
which is included within the revolv-
83
:"...
1 pendent Offices Appropriation Act of 1955, where he finds
2
such refinancing necessary because of the loss, destruction,
3
or damage (as a result of a major disaster) to property or
4
facilities securwg such obligations. The Secretary may
5 authorize a suspension in the payment of principal and
6
interest charges on, and an additional extension w the
7 maturity of, any such loan for a period not to exceed five
8
years if he dete1'mines that such action is necessary to avo'id
9
severe financial hardship.
10
AID TO MAJOR SOURCES OF EMPLOYMENT
11
SEC. 237. (a) The Small Business Administration tn
12
the case of a nonagricultural enterprise, and the Farmers
13 Home Administration in the case of an agricultural enter14
prise, are authorized to provide any industrial, commercial,
15
agricultural, or other enterprise, which has constituted a
16
major source of employment in an area suffering a major
17 disaster and which is no longer in substantial operation as
18
a result of such disaster, a loan in such amount as may be
19
necessary to enable such enterprise to resume operations
20
in order to assist in restoring the economic viability of the
21
disaster area. Loans authorized by this section shall be made
22
without regard to limitations on the size of loans which
23
may otherwise be imposed by any other provision of law
24
or regulation promulgated pursuant thereto.
25
(b) Assistance under this section shall be w addition
84
1
to any other Federal disaster assistance, except that such
2
other assistance may be adjusted ~r modified to the extent
3
deemed appropriate by the Director under the authority of
4
section 208 of this Act'. Any loan made under this section
5 shall be sllbject to the i7ltel'e~t r'equil'emellts of section 234
6
of this Act, but the President, if he dcelHs it necessary, 'may
7 defer payments of principal and interest for a period not to
8
9
10
e:-rceed three years after the date of the loan.
FOOD COUPONS AND DISTRIBUTION
SEC. 238.
(a)
Hl}wnct'et' the President determines
11
that, as a result of a major disaster, lon'-income households
12
are unable to pllJ'chase adequate arnounts
13
he is authorized, under such t(TmS and conditions as he may
14
prescribe, to disb'ibute through the Sccl'etm'y of Agriculture
15
coupon allotments to such households pursuant to the pro-
16
visions of the Food Stamp Act of 1964 and to make surplus
17
commodities available pursuant to the provisions of section
18
203 of this Act.
0/ nutritious
food,
19
(b) The President, through the Secretary of Agricul-
20
ture is authorized to continue to mal'e such coupon allotments
21
and surplus commodities available to such households for so
22
lont] as he determines necessary, takin,r;into consideration
23
such factors as he deems appropriate, including the conse-
24
quences of the major disaster on the earning power of the
"'.
•
r
85
I
1
households to which assistance is made available under this
2
section.
i
3
(C) Nothing m this section shall be construed as
4
amending or otherwise changing the provi,sions of the Food
5 Stamp Act of 1964 except as they relate to the availability
6
of food stamps in a major disaster m'ea.
7
8
LEGAL SERVICES
SEC. 289. TVhenever the Director determines that low-
9 income individuals are unable to secure legal services ade-
r
10
quate to meet their needs as a consequence of a major dis-
11
aster, he shall assure the availability of such legal se1'vices
12
as may be needed by thcse indi'l'idua7s because of conditions
13
created by a major disaster. TVhenerer feasible, and con-
14
sistent with the goals of the program authorized by this
15
section, the Director shall assure that the programs are
16
conducted with the advice and assistance of appropriate
17
Federal agencies and State and local bar associations.
18
19
UNEMPLOYMENT ASSISTANCE
SEC. 240. The President is authorized to provide to any
20 individual unemployed as a result of a major disaster, such
21
assistance as he deems appropriate while such individual is
22
unemployed. Such assistance as the President shall provide
23
shall not exceed the maximum amount and the maximum
24
duration of payment under the unemployment compensation
8.3619-7
87
i
1
or half the term of the loan, whichever is less. Any loans
2
under this section may be made for a local government's
3
fiscal year in which the disaster occurred and for each of
4
the following two fiscal years. Loans for any year shall not
5 exceed the difference between the average annual property ta.r
i'
..,
6
revenue received by the local government for the three-year
7
period preceding the major disaster and the local govern-
S
ment's accrued property tax revenue for each of the three
9
years following the major disaster. For pllrposes of compv-
10
tations under this section, the tax rate and tax assessment
11
valuation factors ,in effect at the time of the disaster sha71
12
not be reduced during the three-year period following the
13
disaster.
14
(c) (1) The President may i1>ansfer to the Fund such
15
sums as he may determine to be necessary from the appro-
16
priations available to him for disaster relief. All amounts
17
received as interest payments or repayments of principal
18
on loans, and any other moneys, property, or assets derived
19
from operations w connection with this section shall be
20 deposited to the Fund.
21
(2) All loans, expenses, and payments pursuant fo
22
operations under this section shall be paid from the Fund.
23
From time to time, and at least at the close of each fiscal
24
year, there shall be paid f1>om the Fund into the Treasury,
25 as miscellaneous Teceipts, interest on the average amount
88
1
of app1'opriations accumu7ated as capital to the Fund, less
2
the average undisbursed cash balance in the fund during
3
the year. The rate of such interest shall not exceed any
4 rate determined under section 234 for loans from the Fund.
5
Interest payments may be deferred with the approval of the
6
Secretary of the Treasury, but any interest payments so de-
7
ferred shall themselves bear interest. If at any time the P1'esi-
8
dent determines that moneys in the Fund exceed the present
9 and any reasonably prospective future requirements of the
10
Fund, such excess may be transferred to the general fund of
11
the Treasury or to the appropriations available to the Presi-
12
dent for disaster relief.
13
(d) There a1'e hereby authorized to be appropriated
14 such sums, not to exceed $100,000,000, as may be neces15
16
sary to carry out the provisions of this section.
TIMBER SALE OONTRAOTS
17
SEC. 242. (a) Whe1'e an existing timber sale contract
18
between the Secretary of Agriculture or the Secretary of
19
,the Interior and a timber purchaser does not provide relief
20
from major physical change not due to negligence of the
21
purchaser prim' to approval of construction of any section
22
of specified road or of any other specified development fa-
23
cility and, as a result of a major disaster, a major physical
24 change results in additional construction work in connection
25
with such road or facility by such purchaser with an esti-
)
89
1 mated cost, as determined by the appropriate 8ecretary, (1)
2
of more than $1,000 for sales undeT one million board feet,
3 (2) of more than $1 per thousand board feet for sales of
4
one to three million board feet, or (3) of more than $3,000
5
for sales over three million board feet, sl1ch increased con-
6
struction cost shall be borne by the United 8tates.
7
(b) If the 8ecl'etary determines that damages are
8
so great that restoration, reconstruction, or construction is
9
not lJractical under the cost-sharing ar1'angement autho·rized
10
by subsection (a) of this section, the 8ecretary may allow
11
cancellation of the contract notwithstanding contrary pro-
12
visions therein.
13
(c) The 8ecretary of Agriculture is authorized to re-
14
duce to seven days the minimum period of advance public
15
notice l'equ'ired by the first section of the Act of June 4, 18.97
16
(16 U.8.C. 476), in connection with the sale of timber from
17
national forests, whenever the 8ecreta'ry determines that (1)
18
the sale of such timber will assist in the construction of any
19
area of a 8tate damaged by a major disaster, (2) the sale
20
of such timber will assist in sustaining the economy of such
!
,..,
21 area, or (3) the sale of such timber is necessary to salvage
22
the value of timber damaged in such major disaster or to
23
protect undamaged timber.
24
(d) The President, when he determines it to be in the
25
public interest, and acting through the Director of Emergency
r
90
1
Preparedness, is authorized to nwke grants to any State or
2
local government for' the
3
owned lands timbel' damaged as a result of a major disaster,
4
and such State or local government is authorized upon appli-
purpos~ of removing fTorn
privately
5 cation, to make payments out of such gra'nts to any person
6
for reimbnrsement of expenBCS actually incurred by such
7
person in the removal of damaged timba, not to exceed the
8
amount that such e:"Cpenses exceed the salvage value of such
9
timber.
PUBLIC LAND ENTRYMEN
10
SEC. 243. The Secretary of the Interior is authorized to
11
12
give any public land entryman such additional time in which
I;)
to comply with any l'equirement of law in connection with
14
any public land entry for lands affected by a major disastm'
13
as the Secretary finds appropriate because of interference
16
with the entryman's ability to comply with such requil'ement
17
as a result of such major disaster.
18
MINIMUM STAND.1RDS FOR RESIDEN'l'IAL STRUCTURE
19
RESTORATION
20
SEC. 244. (aj No lo.an or gf'(1Ht made by any Federal
21
agency, or by any relief O1'ganization olJerating under the
22
supervision of the Director, for the repair, restoration, recon-
23
struction, or replacement of any residential structure located
24
in a major disastel' area shall be made unless such structure
_u will be l'epaired, restored, reconstructed,
')""
01'
replaced in ac-
-
91
1
cordance with such minimum standards of safety, decency,
2
and sanitation as the Secretary of IIousing and Ur·ban De-
3
velopment may prescribe by regulation fol' such pUl'pose,
4
and in conformity with applicable building codes and
5 specifications.
6
(b) In order to carry out the prmnswns of this sec-
7 lion, the Secretary of Huusing and Urban Development is
8
9
10
11
: j-
12
I
"
authoriz ecl(1)
Federal, State, and local governments as he deems
necessary, in or'der that regulations prescl'ibed under
this section shall-
13
(A) carry out the purpose of thl~s section~' and
14
15
16
17
18
f
19
20
21
22
23
to cOJIsllltwith such other officials in the
(B) have the necessar'y fle;ribility to be
C01t-
sistcnt lvith requirements of other bu ilding re[Jul ations, codes, and program reqnirements applicable~'
and
(2) to promulgate such regnlatiulls as rnay be
necessary.
PART D-RES1'ORATION OF PUBLIG
F AGILITIES
FEDERAL F AGILITIES
SEG. 251. The President may lluthoTize any Fede'ral
agency to repair, 1'econstruct, restore, or replace any facilit.1J
24
owned by the United States and under the jurisdiction of
25
such agency which is damaged or destruyed by any rtwjor
92
1
disaster if he determines that sHch repair, recon8truction, l'es-
2
toration, or replacement is of such importance and ul'gency
3
that it cannot l'ea:;;onably be deferred pending the enactment
4 of specific a'uthorizing legislation or the making of an appro5 priation for SItch purposes. In order to carry out the pro-
6 visions of this section, such repai1', reconstruction, restora7 tion, or replacement may be begun notwith$tanding a lack
8 or an insufficiency of funds appropriated for such purpose,
9
where such lack or insufficiency can be remedied by the
10
inlf1sf er , in accordance with law, of funds approp'riated for
11
another purpose.
STATE AND LOGAL GOVERNMENT F AGILITIES
12
13
SEG. 252. (a) The Pres1:dent is authorized to make
14 contributions to State or local governments to repair, restore,
15
reconstruct, or replace public facilities belonging to such
16
State
17
destroyed. by a major disaster, e,rcept that the Federal contri-
18
bution therefor shall not exceed ;;0 per centum of the net
19
cost of restoring any such facility to its capacity prior to
or local
governments v·hich were
damaged or
20 sucn disaster and in conformity with applicable codes and
21
specifications.
22
(b) In the case of any s~ch public facilities which were
23
m the process of construction when damaged or destroyed
24 by a maio'¥' disaster, the Federal coni1·ibution shall not excerd
25 50 per crntum of the net costs of restoring such facilities
93
1 substantially to their prior to such disaster coudition llwl of
2 completin,r; construction not performed prior to the maior
3
disaster to the extent the increase of such cost over the orig-
4 inal const1'uction cost is attributable to changed conditions
5 resultin,r; from a majnr disastp,r.
6
(c) For the purZlOses of this section "public facility"
7
includes any flood control, navigation, irrigation, reclama-
8
tion, public power, seu:a,r;e treatment and collection, water
9 supply and distribution, watershed development, or airport
10
facility, any non-Federal-airl street, road, or highway, and
11
any othrr essential public facility.
12 PRIORITY TO CERTAIN APPLICATIONS FOR PUBLIC FACILITY
13
14
AND PUBLIC HOUSING ASSISTANCE
8 EC. 258. In the IJ1'ocessing of applications for ((ssist-
15
ance, IJriority and immediate consideration may be groen,
16
during slich pe1'iod, not to e:rceed six months, as the Pres-
17 ident shall prescribe hy proclamation, to applications from
18
public bodies situated in maior disasleT m'ew..:, under the fol-
19
lowing Acts:
20
21
22
23
24
(1) title II of the IIousing Amendments of 1955,
or any otheT Act providing assistance for repmr, constnwtion,
01'
extension of public facilities;
(2) the United 8tates Housing Act of 1937 for the
pTovision of lOW-Tent housing;
Ui&illt
94
1
2
(3) section 702 of the If ousing Act of 1954 for
assistance in public works planning;
3
(4) section 702 of the Housing and Urban Devel-
4
opment Act of 1965 providing for grants for public
5
facilities; or
6
7
(5) section 306 of the C onsolidafed Farmers Home
8
9
\
Administration Act.
RELOCATION ASSISTANCE
SEC. 254. Notwithstanding any other Jffovision of law or
10
regulation promulgated thereunder,
11
eligible for relocation assistance payments authorized und€1'
170
person otherwise
12 section 114 of the Housing Act of 1949 shall be denied such
13
eligibility as a result of a major disaster as determined by
14
the President.
15
TITLE III-MISCELLANEOUS
16
17
TECHNICAL AMENDMENTS
SEC. 301.
(a)
Section 701(a)(3)(B)(ii)
of the
18
Housing Act of 1954 (40 U.S.C. 461(a)(3)(B)(ii) is
19
amended to read as follows: "( ii) have suffered substantial
20
damage as a result of a major disaster as determined by
21
the President pursuant to the Disaster Assistance Act of
22
1970".
23
24
25
(b) Section 8(b)(2) of the National Housing Act
(12 U.S.C. 1706c(b) (2)) is amended by striking out of
the last proviso "section 2( a) of the Act entitled 'An Act
r
95
1
to authorize Federal assistance to States and local govern-
2
ments in major disasters, alld for
oth~r purposes' (Public
3 Law 875, Eighty-first Congress, approved September 30,
4 1950)" andi.nserting in liell thereof "section 102 (1) of the
5
6
7
8
9
10
11
12
r-
Disaster Assistance Act of 1970".
(c) Section 203(h) of the National IIousing Act (12
U.S.C. 1709 (h) ) is amf'nded by strikin{J Ollt "section 2( a)
of the Act entitled 'An Act to authorize F'edcral assistance
to States and local governments in major disasters and for
other purposes' (' Public Law 875, Eighty-first Congress,
approved September 30, 1950), as amended" and inserting
in lieu thereof "section 102(1) of the Disaster Assistance
13 Act of 1970".
14
(d) Section 221 (f) of the National Housing Act (12
15
16
17
18
19
20
21
22
U.S.C. 1715l(f)) is amended by striking out of the last
paragraph "the Act entitled 'An Act to authorize Federal
assistance to States and local rJovernments in major disasters,
and for other purposes', ap]Jl'oved September 30, 1950, as
amended (42 U.S.C. 1855-1855g)" and inserting in lieu
thereof "the Disaster Assistance Act of 1970".
( e) Section 7 (a) (1) (A) of the Act of September
30, 1950 (Public Law 874, Eighty-first Congress, as
23 amended; 20 U.S.C. 241-1 (a) (1) (A)), is amended by
24
st1'ikin.fJ out "pursuant to seclion 2(' a) of the Act of Septem-
25 bel' 30, 1950
(4,~
U.S.C.1855a(a))" and illserting in lieu
96
1
thereof "pursuant to section 102(1) of the Disaster Assist-
2
({Jlce Act of 1970".
3
(f) Section 16(a) of the Act of September 23, 1950
4
(79 Stat. 11.58; 20 U.S.C. (;'46 (a)) is amended by striking
5
out "section ,2 (a) of the Act of September 30, 1950 (4,2
6
U.S.C. 1855a(a))" and inserting in lieu thereof "section
7 102(1) of the Disaster Assistance Act of 1.970".
8
(g) Section 408(a) of the Ihgher Education Facilities
9 Act of 1968 (.20 U.S.C. 75R( 0)) is rt'llwnded hy striking
10 out "section 2 (a) of the Act of 8ejJtnJlhe}' 80, 1.Q50 (42
11
U.S.C. 1855a( a) )" and illserting in lieu thereof "section
12 102(1) of the Disaster Assistance Act of 1970".
13
(h) Secti011 165(h)(2) of the Internal Revenue Corle
14
of 1.954, 'relating to disaster losses (,26 U.S.C. 165 (h) (2))
15
,is amended to J'ead as follows:
16
17
18
19
20
"(2) occurl'iflgill
all
((rea s1lhsequently determined
by the President of the United Stales to warrant as."rist((!Ice by the Federfll G OVC1'nment uT/der the Disaster
Assistance Act of 1970,".
(i) Section 5064( a) of the Internal Revenue Code of
21
l.Q54 (26 U.S.C. S064(a)), relating to losses caused by
22
(li~aster, is amended by striking out "the Act of September
23
80, 1.Q50 (42 TT.S.C. 1855)" and inserting in lieu thereof
24
"the Disaster Assistance Act of 1970".
25
,
(j) Section 5708( a) of the Internal Revenue Code of
\
97
1 1.954 (26 U.S.O. 5708 (a) ), relating to losses c(l11scd by
2
disaster, is amended by strikiJ/g out "the Act of Septem-
3
ber 30, 1.950 (42 U.S.O. 1855)" and inserting tn lieu
4 thereof "the Disaster Assistance Act of 1.970".
5
(k) Section 3 of the Act of June 30, 1.954 (68 Stat.
6 330; 48 U.S.O. 1681), is a'mended by striking out of the
7
last sentence "section 2 of the Act of September 80, 1.950
8
(64 Stat. 110.9), as amended (42 U.S.O. 1855a)" and in-
9
serting in lieu thereof "sect'ion 102(1) of the Disaster Assist-
10
ance Act of 1.970".
11
(l) Whenever reference is made in any provision of law
12
(other than this Act), regulation, rule, record, or document
13
of the United States to the Act of September 30, 1.950 (64
14
Stat. 110.9), or any provision of such . Act, such reference
15
shall be deemed to be a reference to the Disaster Assistance
16
Act of 1.970 or to the appropriate provision of the Disaster
17
Assistance Act of 1.970 unless no such provision is included
18
therein.
19
REPEAL OF EXISTING LAW
20
SEC. 302. The following Acts are hereby repealed:
21
22
23
24
(1) the Act of September 30, 1.950 (64 Stat.
110.9);
(2) the Disaster Relief Act of 1.906, except section
7 (80 Stat. 1316); and
98
1
2
(3) the Disaster Relief Act of 1969 (83 Stat.
125).
3
4
AUTHORIZATION OF APPROPRIATIONS
SEC.
303. Except as provided otherwise in this Act,
5
there are hereby authorized to be appropriated such sums
6
as may be necessary to carry out the provisions of this Act.
7
EFFECTIVE DATE
8
SEC.
304. This Act shall take effect immediately upon
9 its enactment, except that sections 226 (c), 237, 241, 252{ a),
10
and 254 shall take effect as of August 1,1969.
.. «
(
(
Calendar No. 1175
91sT CONGRESS
2D SESSIO;>;
5.3619
[Report No. 91-1157]
A BILL
To create, within the Office of the President, an Office
of Disaster Assistance, to revise and ('xpand Federal programs for relief from the effects of major
disasters, and for oth('r purposes.
By :\fr. BAYlI, Mr. BIBLE, Mr. BROOKE, Mr. CRAKSTOX,
Mr. DODD, Mr. EAGU:TON, Mr. EASTLAND, Mr. FONG,
Mr. GRAVEL, Mr. HARRIS, Mr. HART, Mr. HARTKE,
Mr. HUGHES, Mr. INOUYE, Mr. JACKSON, Mr.
JAVITS, lUr. KENNEDY, lVIr. MAGNUSON, Mr. MCGEE,
Mr. McINTYRE, Mr. MILLER, Mr. MONDALE, Mr.
MUSKIE, Mr. PELI., Mr. RANDOLPH, Mr. SPONG, Mr.
STEYENS, Mr. TYDINGS, Mr. WILLIAMS of New
Jersey, Mr. YARBOROUGH, and Mr. YOUNG of Ohio
MARCH 20, 1970
Read twice and referred to the Committee on Public
Works
AUGUST 31,1970
Reported with an ameLdment
(
Public Law 91-606
9lst Congress, S. 3619
December 31, 1970
anaet
To
I
rp\"i~
and ""lJall(\ Ff'(h'rai programs for rplipf from thp ..ffpds of major
disasters. and for othE'r pnrposl"S.
Be it enacted by tile Sel1nte and IIou8e of Bep}'('8entatil'e8 of tlle
rllited Stnte" of AI11f'T'im in ('ongl'e8f1 af/sembled, That this Act may Disaster Relief
he cited as the "Disaster Relief Act of 1970".
Act of 1970
TITLEI-FIKIHXGS AXD DECLARATIONS; DEFIXITIOXS
FINDINGS
~~ND
DECLARATIONS
101. (a) The Congress hereby finds and declares that(1) because loss of life, human suffering, loss of income, and
property loss and damage result from major disasters such as
hurricanes, tornadoes, storms, floods, hi h waters wind~driven
waters, tidal waves, earthquakes, droug ts, res, an ot leI' catas~
trophes; and
(2) because such disasters disrupt the normal functioning of
government and the community, and adversely affect individual persons and families with great severity;
special measures, designed to assist the efforts of the affected States in
pxpediting the rendering of aid, assistance, and emergency welfare
sen'ices, and the reconstruction and rehabilitation of devastated areas,
are necessary.
(b) It is the intent of the Congress, by this Act, to provide an orderly
and continuing means of assistance by the Federal Government to State
and local gm'ernments in carrying out their responsibilities to alleviate
the suffering and damage which result from such disasters by(1) revising and broadening the scope of existing major disaster relief programs;
. (2) encouraging the development of comprehensive disaster
relief plans, programs, and organizations by the States; and
(3) aohieving greater coordmation and responsiveness of Federa:l major disaster relief programs.
SEC.
-
DEFINITIONS
102. As used in this Act(1) "major disaster" means any hurricane, tornado, storm,
flood, high wa,ter, wind-driven water, tidal wave, earthquake,
drought, fire, or other catastrophe in any part of the United States,
which, in the determination of the President, is or threatens to be
of sufficient severity and magnitude to warrant disaster assistance
by the Federal Government to supplement the efl'ortsand available resources of States, local governments, and relief organizations in alleviating the damage, loss, hardship, or suffering caused
thereby, and with respect to which the Governor of any State in
which such catastrophe occurs or threatens to occur certifies the
need for Federal dIsaster assistance under this Act and gives
assurance of the expenditure of a reasonable amount of the funds
of such State, its local governments, or other agencies for alleviating the damage, loss, hardship or suffering resulting from such
catastrophe;
(2) "United States" means the fifty States, the District of
Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Trust Territory of the Pacific Islands;
SEC.
84 STAT. 1744
84 STAT. 1745
r
84 STAT. 1746
Pub. Law 91-606
- 2 -
December 31, 1970
(3) "State" means any State ofthe United States, the District
of Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, or the Trust Territory of the Pacific Islands;
(4) "Governor" means the chief executive of any State;
(5) "local government" means any county, city, village, town,
district, or other political subdivision of ,any State, and includes
any rural community or unincorporated town or village for which
an application for assistance is made by a State or political subdivision thereof;
(6) "Federal agency" means any department, independent
establishment, Government corporation, or other agency of the
executive branch of the Federal Goyernment, except the American
X ationaI Red Cross; and
(7) "Director"' means the Director of the Office of Emergency
Preparedness.
6·
4
TITLE II-THE ADMINISTRATION" OF DISASTER
ASSISTANCE
}'EDERAL COORDINATING OFFICER
Appointment.
Duties.
61 Stat. 80.
36 USC 1.
SEC. 201. (a) Immediately upon his designation ofa major disaster
area, the President shall appoint a Federal coordinating officer to
operate under the Office of Emergency Preparedness in such area.
(b) In order to effectuate the purposes of this Act, t,he coordinating
officer, within the designated area, shall
(1) make an initial appraisal of the types of relief most
UI'gently needed;
(2) establish such field offices as he deems necessary and as are
Huthorized by the Director;
(3) coordmate the administration of relief, including activities
of the American Na.tional Red Cross, the Snlnltion Army, the
Mennonite Disaster Service, and other relief or disaster assistance
organizations which agree to operate under his advice 01' direction,
except that nothing contained m this Act shall limit or in any way
affect the responSIbilities of the American Xational Red Cross
under the Act of January 5, 1905, as amended (:3:3 Stat. 599); and
(4,) take such other action, consistent with authority delegated
to him by the Director, and consistent with the proviSIons of this
Act, as he may deem necessary to assist local citizens and public
offi~ials in promptly obtaining assistance to which they are
entitled.
EMERGENCY srpPORT TE.-\.:}IS
SEC. 202. The Director is authorized to form emerlreucy support
teams of }<'ederal personnel to be deployed iu a major disllster area.
Such emergency support teams shan assist the Federal coordinating
officer in carrymg out his responsibilities pursuant to section 201 (b)
of this Act. Upon request of the Director, the head of any Federal
department or agency is authorized to detail to temporary duty with
the emergency support teams on either a reimbursable or nonreimbursable basis, as is determined necessary by the discretion of the
Director, such personnel within the administrath-e jurisdiction of the
head of the Federal department or agency as the Director may need
or believe to be useful for carrying out the functions of the emergency
support teams, each such detail to be without loss of seniority, pay,
or other employee status.
.
December 31, 1970
- 3 -
Pub. Law 91-606
84 STAT, 1747
COOPER\TION OF FEDERAL AGENCIES IN RENDERING
EMERGENCY ASSISTANCE
WI
I
I
~E('. :203. (1\) In any major disaster, Federal agencies are hereby
authorized, on direction of the President, to provide assistance by(1) utilizing or lending, with or without compensation therefor, to States and local governments, their equipment,. supplies,
facilities, personnel, and other resources, other than the extension
of credit. under the authority of any Act;
(:n distributing or rendering, through the American National
Red Cross, the Sah"ation Army, the Mennonite Disaster Service,
and other relief and disaster assistance organizations, or otherwise, medicine, food, and other consumable supplies, or emergency
assistance;
(;~) donating or lending equipment and supplies determined ill
accordance with applicable laws to be surplus to the needs and
responsibilities of the Federal GoverJIment to State and local
!!overnments for use or distribution by them for the purposes of
this Act; and
(4) performing' on public or pri vate lands or waters any
emergency work essential for the protection and preservation of
life and propert.y, including(A) clearing and removing debris and wreC' kage in aC'cordance with section 224;
(B) making repairs to, restoring to sen ice, or replacing
public facilities (including street, road, and highway facilIties) of State and local gO\"erJIments damaged or destroyed
by a major disaster, except that the Federal contributions
therefor shall not exceed the net cost of restoring each such
facility on the basis of the design of such facility as it existed
immediately prior to the disaster in conformity with current
codes, specifications, and standards;
(C) providing emergency shelter for individuals and
families who, as a result of a major disaster, require such
assistance; and
(D) making contributions to State or local governments
for the purpose of carrying out the provisions of paragraph (4).
(b) Emergency work performed under subsection (a) (4) of this
:-ef'tion shall not preclude Federal assistance under any other Hection
of this Act.
(c) Federal agencies may be l'eimbursed for expenditures under
this Act. from funds appropriated for the purposes of this Act. Any
funds received by Federal agencies as reimbursement for services or
supplies furnished under the authority of this section shall be deposited
to the credit of the appropriation or appropriations currently available for such sen"ices or supplies.
(d) The Federal Government shall not be liable for any claim
based upon the exercise or performance or the failure to exercise or
perform a discretionary function or duty on the part of a Federal
agency or an employee of the Federal Government in carrying out the
provisions of this section.
(e) In carrying out the purposes of this Act, any Federal agency is
authorized to accept and utilize the services or facilities of any State
or local government, or of any agency, office, or employ~ thereof, w.ith
the consent of such government. Any Federal agency, m performmg
any activities under this section, is authorized to appoint and fix the
compensation of such temporary personnel as may be necessary, with-
Reimbursement.
Liability.
Use of State
faoili ties and
persormel.
r
-------------------------------~"'-'-'-" -~,~---------,------
u
84 STAT. 1748
8·
6
4
80 Stat. 443.
5 USC 5101.
~. p. 198-1.
5 USC 3109.
Presidential
powers.
Regulations.
Program
review.
Stuctr.
Report to
Congress.
Pub. Law 91-606
- 4 -
December 31, 1970
out regard to the provisions of title 5, United States Code, goyerning
appointments in the competitive service, and without regard to the
provisions of chapter 51 and subchapter III of such title relating to
classification and General Schedule pay rates, to employ experts and
consultants in accordance with the provisions of section 3109 of such
title, and to incur obligations on behalf of the l'nited States by contract or otherwise for the acquisition, rental, or hire of equipment, services, materials, and supplies for shipping, drayage, tl'llvel, and communication, and for the supervision and administration of such
activities. Such obligations, including obligations arising out of the
temporary employment of additional personnel, may be incurred by an
agency in such amount as may be made available to It by the President.
(f) In the interest of providing maximum mobilization of Federal
assistance under this Act. the President is authorized to coordinate in
such manner as he may determine the activities of Federal agencies in
providing disaster assistance. The President may direct any Federal
agency, with or without reimbursement, to utihze its available personnel, equipment, supplies, facilities, and other resources in accordance with the authority, herein contained. The President may prescribe
such rules and regulations as may be necessary and proper to carry out
any of the provisions of this Act, and he may exercise any power or
authority conferred on him by any section of this Act either directly
or through such Federal agency as he may desi/!llate.
(g) The President, actmg through the Office of Emergency Prf':paredness, shall conduct periodic reviews (at l~lst annually) of the
activities of Federal and Sta.te departments or agencies providing
disaster assistance, in order to assure maximum coordination of such
programs, and to evaluate progress being made in the development of
Federal, State, and local preparedness to cope with major disasters.
(h) The Director of t.he Office of Emergency Preparedness is aut.l1orized and directed to make in coopel'lltion with the heads of other
affected FederaJ and State agencies, a full and complete investigation and study for the purpose of determining what additional or
improved plans, procedures, and facilities are necessary to provide
immediate effective action to prevent or minimize losses of publidy
or privately owned property and personal injuries or deaths which
could result from fires (forest and gl'llss), e:uthquakes, tornadoes,
freezes and frosts, tsunami, storm surges and tides, and floods, which
are or threaten to become major disasters. Not later than one year after
the date of enactment of thIS subsection, and from time to time, the
Director of the Office of Emergency Preparedness shall report to Congress the findings of this study and investigation together with his
recommendations with respect thereto.
USE OF LOCAL FIRMS AND INDIVIDUALS
SEC. 204. In the expenditure of Federal funds for debris cleal'llnce,
distribution of supplies, reconstruction, and other major disaster
assistanee activities which may be carried out by contract with private
organizations, firms, or individuals, preference shall be given, to the
extent feasible and practicable, to those or~nizations, firms, and individuals who reside or do business primarily in the disaster area.
i
I
I
1
1
I
!
l
!
1
I
I
FEDERAL GRANT-IN-AID PROGRAMS
Wai ver.
SEC. 205. Any Federal agency charged wth the administration of a
Fedel'lll grant-in-aid program is authorized, if so requested by the
applicant State or local authorities, to modify or waive, for the dul'll-
December 31, 1970
- 5 -
Pub. Law 91 .. 606
84 STAT. 1749
tion of a major disaster proclamation, such administrative procedural
conditions for assistance as would othe.rwise prevent the giving of
assistance under such programs if the inability to moot such conditions
is a result of the disaster.
STATE DISASTER PLANS
~
SEC. 206. (a) The President is authorized to provide assistance to
the States in developing comprehensive plans and lracticable programs for preparation against major disasters, an for relief and
assistance for individuals, businesses, and local governments following
such disasters. Such plans should include long-range recovery and
reconstruchon assistance plans for seriously damaged or destroyed
public and private facilities.
(b) The President is authorized to make grants of not more than
$250,000 to any State, upon application therefor, for not to exceed
50 per centum of the cost of developing such plans and programs.
(c) Any State desiring assistance under this section shall designate
or crea.te an agency which is specially qualified to plan and administer
such a disaster relief program, and shall, through such agency, submit
a State ,Plan to the President, which shall(1) set forth a comprehensive and detailed State program for
preparation against, and relief following, a major disaster, including provisions for emergency and long-term assistance to individn- uals, businesses, and local governments; and
UP
(2) include provision for the appointment of a State coordinating officer to act in cooperation with the Federal coordinating
officer appointed under section 201 of this Act.
( d) From time to time the Director shall make a report to the
President, for submission to the Congress, containing his recommendations for programs for the Federal role in the implementation and
funding of comprehensive disaster relief plans, and such other recommendations relating to the Federal role in disaster relief activities
as he deems warranted.
(e) The President is authorized to make grants not to exceed 50
per centum of the cost of improving, maintaining, and updating
State disaster assistance plans, except that no such grant shall exceed
$25,000 per annum to any State.
USE AND COORDINATION OF RELIEF ORG.\NIZATIONS
SEC. 207. (a) In providing relief and assistance following a major
disaster, the Director may utilize, with their consent, the personnel
and facilities of the American K ational Red Cross, the Salvation
Army, the Mennonite Disaster Service, and other relief or disaster
assistance organizations, in the distribution of medicine, food, supplies, or other items, and in the restoration, rehabilitation, or reconstruction of community services and essential facilities whenever
the Director finds that such utilization is necessary.
(b) The Director is authorized to enter into agreements with the
~\merican National Red Cross, the Salvation Army, the Mennonite
Disaster Service, and other relief or disaster assistance organizations
under which the disaster relief activities of such organizations may
be coordinated by the Federal coordinating officer whenever such
o~ganizations are engaged in providing relief during and after a major
dIsaster. Any such agreement shall ll1clude prOVIsions conditionll1g
use of the facilities of the Office of Emergency Preparedness and the
Grants for
develoJXllent.
State agenoy,
designation.
State ooordinating offioer.
Re port to
President;
submission to
Congress.
Grants for
maintenanoe.
r
84 STAT. 1750
Pub. Law 91-606
- 6 -
December 31, 1970
services of the coordinating officer upon compliunce with regulations
promulgated by the Director under sections 208 and 209 of this Act,
and such other regulations as the Director may require.
DUPLICATION OF BENEFITS
SEC. 208. (a) The Director, in consultation with the head of each
Federal agency administering any program providing financial assistance to persons, business concerns, or other entities suffering losses as
the result of a major disaster, shall assure that no such person, business concern, or other entity will recpive such assistance with respect
to any part of such loss as to which he has receind financial assistance
under any other program.
(b) The Director shall assure that no person, business concern, or
other entity receives any Federal assistance fOl' any part of a loss
suffered as the result of a major disaster if sueh person, concern, or
entity received compensation from insurance or any other source
for that part of such a loss. Partial compensation for a loss or a part
of a loss resulting from a major disaster shall not preclude additional
Federal assistance for any part of ~uch It loss lIOt compensated
otherwise.
(c) 'Vhenever the Director determinps (1) that a person, business
concern, or other entity has received astiistance under this Act for a
loss and that such p!'rson, business ('oncern 01' oth!'r entity received
assistance for the same loss from another source, and (2) that the.amount received from all sources exceeded the amount of the loss, he 'I '
shall direct such person, business concern, or othpr entity to pay to
the Treasury an amount, not to exceed the amount of Federal assistance received, sufficicJ', "reimburse the Federal (}overninent for that
part of the assistance wl,!l'h he Ileellls excessive.
NONDISCHD! .X.\TION IN DIS.\STER ASSIST.\NCE
Regulations.
SEC 209. (a) The Director shall issue, anll Illay alter and amend,
such regulations as may be necessary for the guidance of personnel
carrying out emergency relief functions at the site of a major disaster.
Such regulations shall include provisions for insuring that the distribution of supplies, the processing of applications, and other relief and
assistance actiyities shall be accomplished in an equitable and impartial
manner, without discrimination on the grounds of race, color, religion,
nationality, sex, age, 01' economic status prior to a major disaster.
(b) As a condition of participation in the distribution of assistance
or supplies under section ~07, relief organizations shall be required to
comply with regUlations relating to nondiscrimination promulgated
by the Director, and such other regulations applicable to activities
within a major disaster area as he deems necessary for the effective
coordination of relief efforts.
DISASTER W.\RNINOS
64 stat. 1248.
SEC. 210. The President is authorized to utilize or to make available to Federal, State, and local agencies the facilities of the civil
defense communications system established and maintained pursuant
to section 201 (c) of the Federal Civil Defense Act of 1950, as amended
(50 U.S.C. app. 2281(c», for the purpose of providing needed warning to governmental authorities and the civilIan population in areas
endangered by imminent major disasters.
December 31, 1970
- 7 -
Pub. Law 91·606
PREDISASTER ASSISTANCE
84 STAT. 1751
SEC. 221. If the President determines that a major disaster is imminent, he is authorized to use Federal departments, agencies, and instrumentalities, and all other resources of the Federal Government to avert
or lessen the effects of such disaster before its actual occurrence.
EMERGENCY COMMUNICATIONS
SEC. 222. The Director is authorized during, or in anticipation of,
an emergency to establish temporary communications in any major
disaster area in order to carry out the functions of his office, and to
make such communications available to State and local government
officials and other persons as he deems appropriate.
EMERGENCY PUBLIC TRANSPORTATION
SEC. 223. The Director is authorized to provide temporary ,Public
transportation service to meet emergency needs in a major dIsaster
area. Such service will provide transportation to governmental offices,
supply centers, stores, post offices, schools, major employment centers,
and such other places as may be necessary in order to enable the community to resume its normal pattern of life as soon as possible.
r
DEBRIS REMOVAL
SEC. 22.J,. (a) The President, whenever he determines it to be in the
public interest, is authorized(1) through the use of Federal departments, agencies, and
instrumentahties, to clear debris and wreckage resulting from a
major disaster from publicly and privately owned lands and
waters.
(2) to make grants to any State or local government for the Grants.
purpose of removing debris or wreckage resulting from a major
disaster from publicly or privately owned lands and waters.
(b) X 0 authority under this section shall be exercised unless the Indenmity
affected State or local government shall first arrange an unconditional provision,
authorization for removal of such debris or wreckage from public and
private property, and, in the case of removal of debris or wreckage
from private property, shall first agree to indemnify the Federal Govemment against any claim arising from such removal.
FIRE Sl7PPRESSION GRANTS
~
SEC. 225. The President is authorized to provide assistance, including grants, to any State for the suppression of any fire on publicly or
privately owned forest or grassland which threatens such destruction
as would constitute a major disaster.
TEMPORARY HOUSING ASSISTANCE
SEC. 226. (a) The Director is authorized to provide temporary
housing or other emergency shelter, including, but not limited to,
mobile homes or other readily fabricated dwel1ings for those who, as a
result of such major disaster, require temporary housing or other
emergency shelter, except that for the first twelve months of occupancy no rentals shall be established for any such accommodations,
thereafter rentals shan be established, based upon fair market value
84 STAT. 1752
Temporary
mortgage
or rent
pB\YIIlents.
Reemployment
assistanoe.
Pub. Law 91-606
- 8 -
December 31, 1970
of the accommodations being furnished, adjusted to take into consideration the financial ability of the occupant. Notwithstanding any other
provision of law, any such emergency housing acquired by purchase
may be sold directly to individuals and families who are occupants
thereof at prices that are fair and equitable. Any mobile home or
readily fabricated dwelling shall be placed on a site complete with
utilities provided by State or local government, or by the owner or
occupant of the site who was displaced by the major dIsaster, without
charere to the United States. However, the Director may elect to provide "other more economical and accessible sites at Federal expense
when he determines such action to be in the public interest.
(b) 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 foreclosure of any
mortgage or lien, cancellation of any contract of sale, or termination
of any lease, entered into prior to the disaster. Such assistance shall be
provided for a period of not to exceed one year or for the duration of
the period of financial hardship, whichever is the lesser. The President
is authorized for the purposes of this subsection and in furtherance of
the purposes of section 240 of this Act, to provide reemployment assistance services under other laws to individuals who are unemployed as a
result of a major disaster.
SMALL BUSINESS DISASTER LOANS
72 Stat. 389.
78 Stat. 7.
SEC. 231. In the administration of the disaster loan program under
section 7(b) (1), (2), and (4) of the Small Business Act, as amended
(15 U.S.C. 636(b)), in the case of propeIty loss or damage or injury
resulting from a major disaster as determmed by the President or a
disaster as determined by the Administrator, the Small Business
Administration(1) to the extent such loss or damage or injuryis not compensated for by insurance or otherwise, (A) shall, on that part of
any loan in excess of $500, cancel the principal of the loan, except
that the total amount so canceled shall not exceed $2,500, except
that this clause (A) shall apply only to loans made to cover
losses and damage and injury resulting from major disasters as
determined by the President, and (B) may defer interest payments or principal payments, or both, in whole or in part, on
any loan made under this section during the first three years of the
term of the loan except that any such deferred payments shall hear
interest at the rate determined under section 234 of this Act.
(2) to the extent such injury, loss, or damage is not compensated for by insurance or otherwise, may grant any loan for
repair, rehabilitation, or replacement of property damaged, or
destroyed, without regard to whether the required financial assistance is otherwise available from private sources.
(3) may, in the case of the total destruction or substantial property damage of a home or business concern, refinance any mortgage or other liens outstanding against the destroyed or damaged
property if such property is to be repaired, rehabilitated, or
replaced, except that the amount refinanced shall not exceed the
amount of the physical loss sustained. Any such refinancing shall
be subject to the provisions of clauses (1) and (2-) of this section.
December 31, 1970
- 9 -
Pub. Law 91-606
84 STAT. 1753
FARMERS HOME ADMINISTRATION EMERGENCY LOANS
II
I
I
SEC. 232. In the administration of the emergency loan program
under subtitle C of the Consolidated Farmers Home Admimstration
Act of 1961, as amended (7 U.S.C. 1961-1967), and the rural housing
loan program under section 502 of title V of the Housing Act of 1949,
as amended (42 U.S.C. 1472), in the case of loss or damage, resulting
from a major disaster as determined by the President, or a natural
disaster as determined by the Secretary of Agriculture-(1) to the extent such loss or damage is not compensated for by
insurance or otherwise, (A) shall, on that part of any loan in
excess o~ $500, cancel the principal of the loan, except that the
total amount so canceled shall not exceed $2,500, except that this
clause (A) shall apply only to loans made to cover losses and
damage resulting from major disasters as determined by the President, and (B) may defer interest payments or principal payments, or both, in whole or in part, on any loan made under this
section during the first three years of the term of the loan,
except that any such deferred payments shall bear interest at the
rate determined under section 234 of this Act.
(2) to the extent such injury, loss, or damage is not compensated for by insurance or otherwise, may grant any loan for
repair, rehabilitation, or replacement of property damaged or
destroyed, without regard to whether the required financial assistance is otherwise available from private sources.
(3) may, in the case of the total destruction or substantial property damage of homes or farm service buildings and related structures and equipment, refinance any mortgage or other liens
outstanding against the destroyed or damaged property if such
property is to be repaired.. rehwbilitated, or replaced, except that
the amount refinanced shall not exceed the amount of the physical
loss sustained. Any such refinancing shall be subject to the provisions of clauses (1) and (2) of thIS section.
75 Stat, 311.
63 Stat. 432;
79 Stat. 497.
Limitation.
LOANS HELD BY THE vETERANS' ADMINISTRATION
"IJ
SEC. 233. (1) Section 1820(a) (2) of title 38, United States Code, is 72 Stat. 1213.
amended to read as follows:
"(2) subject to specific limitations in this chapter, consent to
the modification, with respect to rate of interest, tIme of payment
of principal or interest or any portion thereof, security Or other
provisions of any note, contract, mortgage or other instrument
securing a loan which has been guaI'anteed, insured, made or
acquired under this chapter;"
(2) Section 1820(f) of title 38, lTnited States Code, is amended to 80 Stat. 1316.
read as follows:
., (f) ·Whenever loss, destruction, or damage to any residential property securing loans guaranteed, insured, made, or acquired by the
Administrator under this chapter occurs as the result of a major disaster as determined by the President under the Disaster Assistance Act
of 1970, the Administrator shall (1) provide counseling and such other
service to the owner of such property as may be feasible and shall
inform such owner concerning the disaster assistance available from
other Federal a~encies and from State or local agencies, and (2) pursuant to subsectIOn (a) (2) of this section, extend on an individual case
basis such forbearance or indulgence to such owner as the Administrator determines to be warranted by the facts of the case and the circumstances of such owner."
Pub. Law 91-606
84 STAT. 1754
- 10 -
December 31, 1970
SEC. 2:J.!. ~\.nJ lonn made under sections 231, and 232 of this Act
~h~ll not exceed the cur.rent cost o~ rep~iring or replacing the disaster
l~lJury, loss, or damage Ul cOnfOI'l!llty wIth current codes and specificatIOns. ~\.ny loan made under sectIOns 231, 232, 236 (b) and 237 of this
&ximun
rate.
Act shall bear interest at a rate determined by the Secretary of the
Trea~ury, taking into consideration the current average market yield
on outstanding marketable obligations of the United States with
remaining periods to maturity of ten to twelve years reduced by not to
exceed :2 percentum per annum. In no event shall any loan made under
this section bear interest at a rate in excess of 6 per centum per annum.
.\GE OF APPLICANT FOR LO.\NS
SEC. 235. In the administration of llny Federal disaster loan program under the authority of section 231, 232, or 233 of this Act, the age
of any adult loan applicant shall not be considered in determining
whether such loan should be made or the amount of such loan.
FEDERAL WAN ADJUSTMENTS
SEC, 2:36. (a) In addition to the loan extension authority provided
in section 12 of the Rural Electrification Act, the Secretary of Agriculture is authorized to adjust and readjust the schedules for payment
of principal and interest on loans to borrowers under programs
administered by the Rural Electrification Administration, and to
extend the maturity date of any such loan to a date not beyond forty
veal'S from the date of such loan where he determines such action is
ilecessary becanse of the impairment of the economic feasibility of the
system, or the loss, destruction, or damage of the property of such
borrowers as a result of a major disaster.
(b) The Secretary of Housing and P rban Development is authorized to refinance allY note or other obligation which is held by him
in cOllllection with any loan made by the Department of Housing and
"rban Devl'lopment or its predecessor in interest, 01' "'hich is included
within the l'l"'olving fund for liquidating programs established by
the Independ('nt Offices Appropriation Act of 19iiri, whe!'e he finds such
68 Stat. 295;
refinancing necessary because of the loss, destrudion, or damage (as a
Ante, p. 1462.
I2U'sc 1701g-5. result of a major disaster) to property or facilities securing such obligations. The SecI'etliry may authorize a suspension in the payment of
principal and interest charges on, and an additional extension in the
maturity of, any such loan for a period not to exceed five years if
he determin('s that such action is necessary to avoid severe financial
hardship.
.\ID TO ~fAJOR SOllRCES OF El\IPLOYMENT
49 Stat. 1366.
SEC. 237. (a) The Small Business Administration in the case of It
nonagricultural enterprise, and the Farmers Home Administration
in the case of an agricultural enterprise, are authorized to provide
allY industrial, commercial, agricultural, or other enterprise, which
has constituted a major source of employment in an area suffering a
major disastPr and which is no longer in substantial operation as a
result of such disaster, a loan in such amount as may be ne~essary to
enable such ente.rprise to resume operations in order to assist in restoring the economic viability of the disaster area. Loans authorized by
t his section shall be made without regard to limitations on the size of
~
December 31, 1970
- 11 -
Pub. Law 91- 606
84 STAT. 1755
loans which may otherwise be imposed by any other provision of law or
regulation promulgated pursuant thereto.
(b) Assistance under this section shall be in addition to any other
Federal disaster assistance, except that such other assistance may be
adjusted or modified to the extent deemed appropriate by the Director
under the authority of section 208 of this Act. Any loan made under
this section shall be subject to the interest requirements of section 234
of this Act, but the President, if he deems it necessary, may defer
payments of principal and interest for a period not to exceed three
years after the date of the loan. Any such deferred payments shall
bear interest at the rate determined under section 234 of this Act.
FOOD COUPONS AND DISTRIBUTION
SEC. 238. (a) 'Whenever the President determines that, as a result
of a major disaster, low-income households are unable to pm'chase
adequate amounts of nutritious food, he is authorized, under such
terms and conditions as he may prescribe, to distribute through the
Secretary of Agriculture coupon allotments to such households pursuant to the provisions of the Food Stamp Act of 1964 and to make 78 Stat. 703.
fmrplus commodities available pursuant to the provisions of section 203 7 USC 2011
of this Act.
note.
(b) The Presidcnt, through the Secretary of Agriculture, is authorized to continue to make such coupon allotments and surplus commodities available to such households for so long as he dete.rmines
necessary, taking into consideration such factors as hc deems appropriate, including the consequences of the major disaster on the earning
power of thp, households to which assistance is made available under
this section.
(c) Nothing in this section shall be construed as amending or otherwise changing the provisions of the Food Stamp Act of 1964 except
as they relate to the availability of food stamps in a major disaster
urea.
LEGAL SERVICES
SEC. 239. W"henever the Director determines that low-income individuals are unable to secure legal services adequate to meet their needs
as a consequence of a major disaster, consistent with the goals of the
programs authorized by this Act, the Director shall assure that such
programs are conducted with the advice and assistance of appropriate
Federal agencies and State and local bar associations.
UNEMPLOYMENT ASSISTANCE
1
SEC. 240. The President is authorized to provide to any individual
unemployed as a result of a major disaster, such assistance as he deems
appropriate while such individual is unemployed. Such assistance as
the President shall provide shall not exceed to maximum amount
and the maximum duration of payment under the unemployment compensation program of the State in which the disaster occurred, and
the amount of assistance under this section to any such individual
shall be reduced by any amount of unemployment compensation or of
private income protection insurance compensation available to such
individual for such period of unemployment.
•
84 STA.T~ 1756
Pub. Law 91-606
- 12 -
December 31. 1970
COMMUXITY DISASTER GRAXTS
SEC. 241. The President is authOl'ized to make grants to any local
government which, as. the result of a major disaster, has suffered a
substantial loss of property tax revenue (both real and personal).
Grants made under this section may be made for the tax year in which
the disaster occurred and for each of the following two tax years.
The grant for any tax year shall not exceed the difference between the
annual average of all property tax revenues received by the local
government during the three-tax-year period immediately preceding
the tax year in which the major disaster occurred and the actual
property tax revenue received by the local government for the tax year
in which the disaster occurred and for each of the two tax years following the major disaster but only if there has been no reduction in the
tax rates and the tax assessment valuation factors of the local government. Ii there has been a reduction in the tax rates or the tax assessment valuation factors then, for the purpose of determining the
amount of a grant under this section for the year or years when such
('eduction is in effect, the President shall use the tax rates and tax
assessment valuation factors of the local government in effect at the
time of the disaster without reduction, in order to dl'termine the
property tax revenues which \~'ould have been received by the local
government but for such reductIOn.
TIMBER SALE CONTRACTS
30 Stat, 35;
31 Stat, 661;
66 Stat, 95,
SEC. 242. (a) 'Vhere an existing timber sale contract between the •
Secretary of Agriculture or the Secretary of the Interior and a timber
purchaser does not provide relief from major physical change not due
to negligence of the purchaser prior to approval of construction of any
section of specified road or of any other specified development facility
and, as a result of a major disaster, a major physical change results
in additional construction work in connection with such road or facility
by such. purchaser with an estimated cost, as determined by the
approprIate Secretary, (1) of more than $1,.0.0.0 for sales under one
million board feet, (2) of more than $1 per thousand board feet for
sales of one of three million board feet, or (3) of more than $3,.0.0.0
for sales over three million board feet, such increased construction cost
shall be borne by the United States.
(b) If the Secretary determinps that damagps are so great that
restoration, reconstruction, or construction is not practical under the
cost-sharing arrangempnt authorized by subsection (a) of this section,
the Secretary may allow cancellation of the contract notwithstanding
contrary provisions therein.
(c) The Secretary of Agriculture is authorized to reduce to seven
days the minimum period of advance public notice required by the first
section of the Act of June 4, 1897 (16 U.S.C. 476), in connection with
the sale of timber from national forpsts, whenpver the Secretary determines that (1) the sale of such timber will assist.-in the construction of
any area of a State damaged by a major disaster, (2) the sale of such
timber will assist in sustaining the economy of such area, or (3) the
sale of such timber- is necessary to salvage the value of timber damaged in such major disaster or to protect undamaged timber.
(d) The President, when he determines it to be in the public interest,
and acting through the Director of Emprgency Preparedness, is
authorized to make grants to any State OJ' local g-overnment for the
purpose of removing- from privately mnwd lands timber damaged as
a result of a major disaster, and such State or local government is
Decernber31,1970
-I
- 13 -
Pub. Law
9l~606
84 STAT. 1757
authorized upon appliciltion, to make payments out of such/rants to
any person for reimbursement of expenses actually incurre by such
person in the removal of damaged timber, not to exceed the amount
that such expenses exceed the salvage yalue of such timber.
~IINUIUM
STANDARDS FOR RESIDENTIAL sTRUCTrRE RESTORATION
SEC. 243. :x0 loan or grant made by any relief organization operating under the supervision of the Director, for the repair, restoration,
reconstruction, or replacement of any residential structure located in a
major disaster area shall be made unless such structure will be
repaired, restored, reconstructed, 01' replaced in accordance with applicable standards of safety, decency, and sanitation and in conformity
with applicable building codes and specifications.
FEDERAL FACILITIES
SEC. 251. The President may authorize !lny Federal agency to
repair, reconstruct, restore, or replace any facility owned by the
rnited States and under the jurisdiction of such agency whICh is
damaged or destroyed b,Y any major disaster if he determines that
such repair, reconstructIOn, restoration, or replacement is of such
importance and urgency that it cannot reasonably be deferred pending the enactment of specific authorizing legislation or the making of
an appropriation for such purposes. In order to carry out the provisions of this section, such repair, reconstruction, restoration, or
replacement may be begun notwithstanding a lack or an insufficiency
of funds appropriated for such purpose, where such lack or insufficiency can be remedied by the transfer, in accordance with law, of
funds appropriated to that agency for another purpose.
STATE .\ND LOC.~L GOVERNMENT F.\CILITIES
SEC. 252. (a) The President is authorized to make contributions to Federal
State or local governments to repair, restore, reconstruct, or replace ClCIntrlbutions.
public facilities belonging to such State or local governments which
were damaged or destroyed by a major disaster, except that the Federal contribution therefor shall not exceed 100 per centum of the net
cost of repairing, restoring, reconstructing, or replacing any such
facility on the basis of the design of such facility as it eXIsted immediately prior to such disaster and in conformity with applicable codes,
specifications, and standards.
(b) In the case of any such public facilities which were in the Limitation.
process of construction when damaged or destroyed by a major
disaster, the Federal contribution shall not exceed 50 per centum of the
net costs of restoring such facilities substantially to their prior to such
disaster condition and of completing construction not performed prior
to the major disaster to the extent the increase of such cost over the
original construction cost is attributable to changed conditions resulting from a major disaster.
(c) For the purposes of this section "public facility" includes any "PubliCI
flood control, navigation, irrigation, reclamation, public power, faClility."
sewage treatment and collection, water supply and distribution, watershed development, or airport facility, any non-Federal-aid street,
road, or highway, and any other public building, structure, or system,
other than one used exclusively for recreation purposes.
-~-----===------.-------------
Pub. Law 91.606
84 STAT. 1758
- 14 -
December 31. 1970
PRIORITY TO CERTAIN API'LICATIONS FOR PUBLIC F.\CILITY .\XD PUBLIC
HOUSING .\SSISTANCE
69 Stat. 642;
75 Stat. 175.
42 USC 1491.
50
42
69
78
40
Stat. 888.
USC 140l.
Stat. 641;
Stat. 799.
USC 462.
79 Stat. 490;
82 Stat. 534.
42 USC 3102.
75 Stat. 306;
80 Stat. 1318.
7 USC 1926.
78 Stat. 788;
82 Stat. 526.
42 USC 1465.
SEC. 25:1. In the processing of applications for assistance, priority
:md immediate consideration may be given, during such period, not
to exceed six months, as the President shall prescribe by proclamation,
to applications from public bodies situated in major disaster areas,
under the following Acts:
(1) title II of the Housing Amendments of 1955, or any other
Act providing assistance for repair, construction, or extension of
public facilities;
(2) the United States Housing Act of 1937 for the provision of
low-rent housing;
(a) section 702 of the Honsing Act of 195-1 for assistance in
public works planning;
.
( -1) section 702 of the Housing and Urban Development Act of
196;'> providing for grants for public facilities; or
(5) section 306 of the Consolidated Farmers Home Administration Act.
RELOC.\TION .\SSISTAXCE
SEC. 25-1. Xotwithstanding any other provision of law, no person
ot.herwise eligible for any kind of relocation assistance payment
authorized under section II-! of the Housing Act of 19-19 shall be
denied such eligibility as a result of his being unable, because of a.
major disaster as determined by the President, to reoccupy property
from which he was displaced by such disaster.
TITLE III-)USCELLAXEOLS
TECHXICAL
82 Stat. 527.
67 Stat. In.
A~IEND)IENTS
SEC. 301. (a) Section 701 (a) (a) (R) (ii) of the Housing Act of 1954
(-10 CS.c. -161 (a) (3) (B) (ii» is amended to read as .follo~vs: "(ii)
have suffered substantial damage as a result of a maJor dIsaster as
determined by the President pursuant to the Disaster Relief Act of
1970".
(b) Section 8(b) (2) of the ~ational Housing Act (12 U.S.C. 1706c
( b) (2» is amended by striking out of the last proviso "section 2 (a)
of the Act entitled 'An Act to authorize Fedeml assistance to States
and local governments in major disasters, and for other purposes'
(Public Law 87i). V;shty-first Congress, approved Septemb.er 30,
19f1O \ "
1 heu thereof "sectIOn 102 (1) of the DIsaster
of the Xational Housing Act (12 U.S.C.
strikinO" out "section 2(a) of the Act entitled
Ideml ~ssistance to States and local govern\ and for other purposes' (Public Law 875,
)proved September 30, 1950), as amended"
['eof "section 102 (1) of the Disaster Relief
au,
purra result,
, the National Housing Act (12 U.S.C.
triking out of the last paragraph "the Act
'ize Federal assistance to States and local
lsters, and for other purposes', approved
nded (-12 U.S.C. 1855-1855g)" and insert;tel' Relief Act of 1970".
December 31. 1970
- 15 -
Pub. Law 91-606
(e) Section 7(a) (1) (A) of the Act of September 30, 1950 (Public
Law 874, Eighty-first Congress, as amended; 20 U.S.C. 241-1(a) (1)
(A) ), is amended by striking out "pursuant to section 2 (a) of the Act
of September 30, 1950 (42 U.S.C. 1855a (a) ) " and inserting in lieu
thereof "pursuant to section 1<)02 (1) ofthe Disaster Relief Act of 1970".
(f) Section 16(a) of the Act of September 23,1950 (79 Stat. 1158;
20 U.S.C. 646(a» is amended by striking out "section 2(a) of the Act
of September 30, 1950 (42 U.S.C. 1855a (a) )" and inserting in lieu
thereof "section 102( 1) of the Disaster Relief Act of 1970".
(g) Section 408(a) of the Higher Education Facilities Act of 1963
(20 U.S.C. 758(a» is amended by striking out "section 2(a) of the
Act of September 30, 1950 (42 U.S.C. 1855a (a) )" and inserting in lieu
thereof "section 102( 1) of the Disaster Relief Act of 1970".
(h) Section 165(h) (2) of the Internal Revenue Code of 1954, relating to disaster losses (26 U.S.C. 165(h) (2» is amended to read as
follows:
"(2) occurring in an area subsequently determined by the President of the United States to warrant assistance by the Federal
Government under the Disaster Relief Act of 1970,".
(i) Section 5064(a) of the Internal Revenue Code of 1954 (26
U.S.C. 5064(a», relating to losses caused by disaster, is amended by
striking out "the Act of September 30, 1950 (42 U.S.C. 1855)" and
inserting in lieu thereof "the Disaster Relief Act of 1970".
(j) Section 5708(a) of the Internal Revenue Code of 1954 (26
U.S.C. 5708(a», relating to losses caused by disaster, is amended by
striking out "the Act of September 30, 1950 (42 U.S.C. 18(5)" and
inserting in lieu thereof "the Disaster Relief Act of 1970".
(k) Section 3 of the Act of June 30, 1954 (68 Stat. 330; 48 U.S.C.
1681), is amended by striking out of the last sentence "section 2 of
the Act of September 30, 1950 (64 Stat. 1109), as amended (42 U.S.C.
1855a)" and inserting in lieu.thereof "section 102(1) of the Disaster
Relief Act of 1970".
(I) ·Whenever reference is made in any provision of law (other than
this Act), regulation, rule, record, or document of the United States to
the Act of September 30, 1950 (64 Stat. 1109), or any provision of such
Act, such reference shall be deemed to be a reference to the Disaster
Relief Act of 1970 or to the appro~riate provision of the Disaster
Relief Act of 1970 unless no such provIsion is included therein.
84 STAT. 1759
81 Stat. 811.
80 Stat. 1318.
76 Stat. 51.
72 Stat. 1337.
72 Stat. 1420.
82 Stat. 1213.
REPEAL OF EXISTING LAW
.
SEC. 302. The following Acts are hereby repealed :
42 USC
(1) the Act of September 30, 1950 (64 Stat. 1109);
(2) the Disaster Relief Act of 1966, except section 7 (80 Stat. 42 usc
note.
1316); and
42 USC
(3) the Disaster Relief Act of 1969 (83 Stat. 125).
note •
PRIOR ALLOCATION OF FUNDS
SEC. 303. Funds allocated before the date of enactment of this Act
under a Federal-State Disaster Agreement for the relief of a major
disaster as defined in the Act of September 30, 1950 (Public Law 875,
Eighty-first Congress), and not expended on the date of enactment of
this Act may be used by the State to make payments to any person for
reimbursement of expenses actually incurred by such person in the
removal of debris from community areas, but not to exceed the amount
that such expenses exceed the salvage value of such debris, or in other-
1855.
1855aa
1855aae.
r
I
84 STAT. 1760
Pub. Law 91-606
64 Stat. 1109.
42 usc 1855.
wise carrying out the purposes of such Act of September 30, 1950, or
this Act.
- 16 -
December 31, 1970
EFFECTIVE DATE
SEC. 304. This Act shall take effect immediately upon its enactment,
except that sections 226(b), 237, 241, 252{a), and 254 shall take effect
as of August 1, 1969, and sections 231, 232, and 233 shall take effect as
of April 1, 1970.
Approved December 31, 1970.
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 91-1524 (Comm. on Publio Works) and No. 91-1752
(Comm. of Conferenoe).
SENATE REPORT No. 91-1157 (Comm. on Publio Works).
CONGRESSIONAL RECORD, Vol. 116 (1970):
Sept. 9, oonsidered and passed Senate.
Oot. 5, oonsidered and passed House, amended.
Deo. 17, House agreed to oonferenoe report.
Dec. 18, Senate agreed to oonferenoe report.
I -
54-033
I
I
92D
CONGRESS
1ST SESSION
II"
S.903
IN THE SENATE OF THE UNITED STATES
FEBRUARY 22 (legislative day, FEBRUARY 17), 1971
Mr. BAYH (for himself, Mr. CRANSTON, and Mr. TUNNEY) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing and Urban Affairs
A BILL
To provide for a national program of disaster insurance.
1
Be it enacted by the Senate and House of Representa-
2
tives of the United States of America in Congl>ess assembled,
3
That this Act may be cited as the "Federal Disaster Insnr-
4 ance Act of 1971".
5
6
PURPOSE
SEC. 2. It is the purpose of this J\ct to provide for a
7 Federal insurance program covering property loss or damage
8 resulting from a disaster if such insurance is not made
9
available to the public at reasonable rates by the insurance
10 industry.
II
i - r - - - - - - - - - - - - - - - - - - - - - - - - - - - ----~~~--
--~--
"
DEFIXI'l'IONS
SEC. 3. As used ill this Act- ,
(1) "disaster" llloans allY flood, high waters, winddriven waters, tidal wave, drought, hurricane, tornado,
earthquake, storm, or other catastrophe as defined by
the Secretary in regulatiolls issued pursuant to this Act;
(2) "l' llited Htatt's" means the several States of
the
e llited
Btates, the District of Oolumbia, the Oom-
lllonwealth of Puerto Hieo, Guam, the Virgin Islands,
American Samoa, and the Cnnal Zone;
(:3)
"~·)tate"
meallS eath of the United States, the
District of Oolumbia; the Commonwealth of Puerto
Hieo, (iuam, the Virgin Islands, American Samoa, and
the Canal Zone;
(4) "Goveruor" means the chief executive of any
State; and
(5) "Seert'tary" meallS the Hecretary of Housing
and
e rball Development.
BASIC AUTHORITY
SEC.
4. (a) The Secretary is authorized to establish and
carry out a disaster insurance program which will enable
interested persons to purchase insurance against loss resulting from physical damage to or loss of real property and
24 personal property related thereto arising from any disa,ster
~5 occurring in the United States.
3
'"
1
(b) In carrylllg out the disaster immrance prognllll
:2
the Secretary shall, to the maximum extent practicable, en"-
3 courage and arrange fo1'4
"
(1) appropriate financial participa,tioll and risk-
,)
sharing ill the
6
lllsnrers; and
7
iusnrance companies or other
(2) other appropriate participation on other than
8
It
9
insurers, insnrance agents and brokers, and insurance
10
risk-sharing lmsis by insurance companies or other
adjustment organizations.
11
r
prc~p'um ~y
l~
SCOPE 01:<' PROGRAM
SEC~
5. (a) III carrying out the disaster insurance
I::> program the Secretary :-;h;lll iilitially make disaster insur14 <lnre ayailable to covel residential properties which are
15 desiglled for the occupancy of from one to four families.
16
(b) If 011 the basis of-
17
( 1) studies and investigations undertaken and car-
18
ried out and information received or exchanged under
19
section 7, and
20
(2) such other information as may be necessary, the
21
See-retary determines that it would be feasible to extend
22
23
24
the disaster insurance program to cover other properties,
he may take such action under this Act as may he necessary in order to make disaster insurance ayailable to
4
1
cover, on such basis as may be feasible, any types and
2
classes of-
3
(-,-t) other residential properties;
4
(B) business properties;
5
( C)
6
(D) properties occupied by private nonprofit
7
8
9
agricultural properties;
organizations; and
(E) properties owned by State and local go v-
ernments and agencies thereof.
10 Any such extensions of the program to any types and classes
11
12
10
of such properties shall be estahlished by order.
NATURE AND LIMITATION OF INSURANOE OOVERAGE
SEC. 6. (a) The Secretary shall, after consultation with
14 appropriate representatives of the insurance authorities of
15
16
the respective States, provide by order for general terms
and conditions of insurability which shall be applicable to
17 properties eligible for disaster insurance coverage under sec-
18 bon
. 5·
,meIu d·mg"-
19
20
21
22
23
24
25
(1) the types, classes, and locations of any such
properties which shall be eligible for disaster insurance;
( 2 ) the nature of and limits of loss or damage in
any areas (or subdivisions thereof) which may be
covered by such insurance;
(3) the classification, limitation, and rejection of
any risks which may be necessary;
('
5
1
(4) appropriate minimum premiums;
2
(5) a,ppropria te los's-d~dnetihles: and
3
(6) any other tprHls Hml eOllditiOlIS relating to in-
4
surance coverage or exclusion which mny 1)(' necessary to
5
carry out the provisions of this Act.
6
(h) In addition to any other terms and conditionR nnder
7 subsecti'On (a), such orders shall provide that8
r
any disaster msurance coverage hased on
9
chargea:ble premium rates (under section 8) which are
10
less than estimated premium rates (under ~ction 7 (a)
11
( 1) ), shall not exceed-
12
(A) in the case of residential properties which
13
are designed for the occupancy of from one to four
14
15
16
17
18
19
20
21
22
23
r:
(1)
24
25
~amilies;
(i) $15,000 aggregate liability for any
dwelling unit, and $30,000 for any single dwelling struoture containing more than one dwelling
unit; and
(ii) $5,000 aggregate liability per dwelling unit ror any peT'SOnal property relwted there-
to; and
(B) in the OO!se of any 'Other properties which
may become eligible for disaster insurance coverage
under section 5, $30,000 aggregate liability for any
single structure; and
6
1
(2) any di.saster insurance coverage vvhieh may be
2
ma,de available in excess of
3
suhparagraphs (1) (A) and (R) ofthis
4
. be hased onl~r
OIl
3l~y
of the limits specified in
snb~eetion
shall
chargeahle premiulll rates (under sec-
tion 8) which are not less t.han est.imMed premium rates
6
(under section 7 (a) (1) ) .
7
FSTDfATES OF PREMT1T:\[ RATES
8
SEC; 7. (a) The Secretary is authorir,ed to underta.k<,
9
and carry out such studi<,s and investigatiollR and to receive
10 or exchange such infonnation a's may he neees,sary to estiII mate on an area, subdivision, or other aI)propriate hasis12
13
14
15
16
17
18
19
20
21
22
23
24
21)
( 1) the risk premium rates for disa-slter insnranc('
which(A) based on comideration of the risk involved
and accepted actuarial principles, and
(B) ineluding(i) applicable operating costs and allowances which, in his discretion, should properly
be reflected in such rates, and
(ii) any administrative expenses (or portion of sneh expemes) .of carrying out the disa'ster insurance program which, in his discretion,
should llroperly he reflected in such rates,
would be required in order to make such insnrance ayai1I
ahle on an actuarial basis for any types and classes of
",
7
r
1
properties for which I1lsnrnnce covrrag'p Rhnll he n"nil-
2
able under section 5, and
3
(2) the rateR, if Ir~s tlwn the m teR cRtimated under
4
paragraph (1) which "'onld enconrag(' prospective in-
5
6
.
7
!
sureds to pnrchase disaster insurance, and would be consiRtent with the pnrposes of this Act .
(b) In carrying OHt snhseetion (a), the Secretnry shall,
8
to the maximum extent feasible and on a reimbursement
9
basis. utilize thc seryices of the Department of the Army,
i
10 the Dcpnrtmellt of th(· Interior, the Department of .Agricul-
'i
11 tnre, ihe Department of Commerce, the Tennessee Valley
- -)
r
.1_
.Anthority, and,
[IS
appropriate, other Federal departments or
13 agencies, and for such purposcR, may enter into contracts or
14 other appropriate arrangcllH'nts with any person.
15
Es'rABLISHMEKT OF CUARGEABljE PREMIUM nATES
16
SEC. 8. (a) On the baRis of estimates made under section
17 7 and Ruch other information as lllay be necessary, the See18 rptary from time to time shnll, after consnltation with appro19 priate repreRentatin~s of the insurance Hnthorities of the re20 spectiye States, by order prescribe-
21
22
23
24
25
(1) clmrgeable premium rates for any types and
classes of properties for which insnrance coverage ~hall
be a:vailahle under Rection 5 (at less than the estimated
risk premium rates nnder section 7 (a) (1), if necessary) , and
8
1
(2) the terms and conditions under "which and areas
2
(ineluding subdivisions thereof) ,Yithin which such rates
:1
4:
5
(j
. shall apply.
(b) Such rates shall, insofar as practicahle, be(1) based on a consideration of the respective risks
involved,
7
(2) a,dequate, on the basis of accepted actuarial
8
principles, to provide reserves for anticipated losses, or, if
9
less than such amount, consistent with the objective of
10
making disaster insurance uyailable, where necessary, at
11
reasonable rates so as to encourage prospective insureds
12
to purchase such insurance, and
13
(3) stated
S'O
as to reflect the basis for such rates,
14
including the ,differences (if any) hetween the estimated
15
risk premium rates under paragraph ( 1) of section
16
7 (a), and the estimated rates under paragraph (2) of
17
such Isection.
18
(c) If any chargeable premmm rate prescribed under
19
20
21
this ISection( 1) is at a rate which is not less than the estimated
risk premium rate under section 7 (a) (1), and
22
(2) includes any amount for administrative ex-
23
penses of carrying out the disaster insurance pJ'!ograms
#
•
r
.
1
which have been estimated under clause (ii) of s(,ctioll
:2
7(a) (1) (B),
3
a sum equal to such amount shall be paid to the Secretary,
4:
and he shall deposit such sum in the fund authorized under
;)
section 10.
()
.
I
THEASURY
BORRmnNG
A U'l'lIOHITY
SEC. 9. (a) The Secretary is authorized to issue to the
R
Secretary of the Treasury from time to time and have ont-
9
standing at anyone time,
1Il
an amount not exceeding
10
$500,000,000 (or such greater mnollut as may be ap-
11
proved by the President), notes or other obligations m
12
such forms and denominations, bearing such maturities, and
]3
subject to sueh terms and conditions as may be prescrihed
14
by the Administrator, with the approval of the Secretmy
15
of the Treasury. Such notes or other obligations shall bear
16
interest at n rate determined by the Secretary of the Tl'(,lls-
17 my, taking iuto consideration the current average market
18
~vield on the (~utstanding marketahle obligations of the
19
Stntes of comparable maturities during the month preceding
20
the issuance of such notes or other obligations. The Secretar,v
21
of the Trenslll'Y is authorized and directed,to pnrclws0 nn,v
22
notes and other obligations to be issued under this 'subsection,
23
and for such purpose he is authorized to use as a puhlic debt
S. 903-2
(
IT llited
10
transaction the proceeds from the sale ,of any securities issued
1
2 under the Second Liberty Bond Act, as amended, and the
3
purposes for which securities may be issued under such Act,
4
a,s amended, are extended to include any purchalSes of such
;) notes and obligations.
l)
The Secretary of the rrreasury may at any time sell any
7
of the notes or other obligations acquired by him under this
8
section. All redemptiDns, purchases, and sales by the Secre-
9
taTY of the Treasury Dfsuch notes O'r other obligations shall
lobe treated as public debt transactions of the United States.
11
(b) Any funds borrowed by the Secretary under this
12
authority shall, frO'm time to time, be deposited in the disaster
Ii1
insurance fund established under 'section 10.
14
DISASTER INSURANOE FUND
15
SEO. 10. (a) To carry out the disaster insurance pl~O-
1 (j
gram authorized by this Act, the Secretary is authorized to
17
establish in the Treasury of the United States a disaster insur-
18 ance fund which shall be available, without fiscal year
19 limitation20
( 1) to repay to the Secretary of the Treasury such
21
22
23
sums as may be borrowed from him (together with
interest) in accordance with the anthority provided in
section 9 of this title; and
(2) to pa~' sH('h ndministrntiY(~ expenses (or P01'-
11
•
1
tion of such expenses) of carrying out the disaster insumnce program as he may deem necessary; and
(3) to pay claims and other expenses and costs of
4
the disaster insurance program, as the Seeretnry deems
necessary.
(b) The fnnd shall be credited with-
t
7
(1) snch fnnds borrowed in accordance with the
8
authority provided in section 9 of this Act as may from
9
time to time he deposited in the fund;
10
(2) snch amounts as may be advanced to the fund
11
from appropriations in order to maintain the fund in an
12
operative condition adequate to meet its liabilities;
13
14
15
16
17
(3) interest which may be earned on investments
of the fund pursuant to subsection (c) ;
( 4) such sums 'us are required to be paid to the
Secretary under section 8 ( c) ; and
( 5) receipts from any other 'operations lmder this
18
Act which may be credited to the fnnd
19
premiums and salvage proceeds, if any, resulting from
20
reinsurance coverage) .
21
(c) If, after all ontstanding obligations have been 1iqui-
(including
22 dated. the Secretarv determines that the moneys
of the fund
..,
.
23
f
24
.
/
are in excess of Cllrrent nrrds, he may reqnest the investment
of sneh amounts as he deems advisahle hy the
Secretar~'
of
12
the r.DTeasury in obligatiolls issued or IgUla.ral1teoo by the
1
2 United States.
±
SEC. 11. ffhe Secretary is authorized to Issue order·s
;J
establishing the generalmcthod or H1l'thods by which proyecl
6
and approved claims for losses may be adjusted and paid
7 for any damage to or loss of property whieh is eovered hy
8 disastrr insurance made a Y:l lIable nnder the pl'ovisions
9
10
11
Df
this Act.
mSSRi\lIKATION OJ<' DIHA~TEH I~SURANCE INFoR~rA'rIOx
SEC. 12. The Secret~HY shall take such action as lllay be
12 necessary in order to make information and data available
13 to the publie and to any State or local agency or offieial, with
14 regard to-
15
16
(1) the disaster msnrance program, its coverage
and objectives, and
17
(2) estimated and chargeable disaster insurance
18
premium rates, including the basis for and differences
19
between such rates in accordanee with the provisions
20
of section 8.
21
22
23
BEXEFITS
SEC. 13. (a) Nohvithstanding the provIsiOns of any
24 other law, no Federal disaster assistance shall be made avail25 able to any owner of real property for the physical loss, de-
13
1
struction, or damage of such property, to the extent that such
2 loss, destruction, or damage-
(
3
( 1) is covered by a valid claim which may be
4
adjusted and paid under disaster insurance made avail-
5
able under the authority of this Act, or
6
(2) could have been covered by a valid claim
7
under disaster m~urance which had been made avail-
8
able under the anthority of this Act, if-
9
(A) such loss, destruction, or damage oc-
10
curred subsequent to one year following the date
11
disaster insurance was made available in the area
12
(or subdivision thereof) in whieh such property
13
or the major part thereof was located, and
14
15
(B) such property was eligible for disaster insurance under this Act at that date,
16
and in such circumstances the extent that such loss,
17
destruction, or damage could have been covered shall
18
be presumed (for purposes of this subsection) to be an
19
amount not less than the maximum limit of insurable
20
loss or damage applicable to such property in such area
21
(or subdivision thereof) at the time insurance was made
22
available in such area (or subdivision thereof) .
23
(b) For purposes of this section "Federal disaster as-
24 sistance" shall include anv Federal financial asgistance which
oJ
I(
25
may he made available to any person as a result of-
14
( 1) a major disaster proclaimed by the President,
1
(2) a natural disaster, as. determined hy the Sec-
2
retary of Agriculture pursuant to section 321 of the
3
Consolidated Fanners Home Administration Act of
4
196.1 (7 U.S.C. 1961), and
5
(3) a disaster with respect to which loans may be
6
7
made under section 7 (h) of the Small Business Act, as
8
amended (1i) U .R.C. 636 (h) ) .
9
PROPERTIES IX VIOI,ATION OF STATE AND I,OCAT, LAW
SEC. 14. No new disaster insurance coverage shall be
10
11 provided under this Act for any property which the Secre12 tary finds has been declared by a duly constituted Stat(' or
13 local zoning authority, or other authorized puhlic body, to
14 be in violation of State or local laws, regulations, or ordi15 nances which are intended to discourage or otherwise restrict
16 land development or occupancy in disaster-prone areas.
17
18
COORDTN ATTOX WITH O'l'HER PROGRAMS
SEC. 15. (a) The Secretary shall coordinate the ad-
19 ministration of this Act with the authoritv
." conferred on him
20 by the N ationa 1 Flood Insurance Act of 1968.
21
(b) In carrying ont this Act, the Secretary sha11 con-
22 snIt ,,,ith other departments and agencies of the Frdcrnl
23
Government, and interstate, State, and locnl agencies having
24 responsibilities for disaster assistance in order to assnre that
25 the programs of such agenries and the disaster insnnmre
15
".~
1
program authorized under this Act are mutually consistent.
2
(c) The Y eterans' Administration, the Federal Housing
3 Administration, and any other Federal agency administering
4 a program under which loans or mortgages on residential or
5
other structures are guaranteed or insured by the Federal
6 Government, shall, by regulation, require that any such
7
structure he immred undrr the disaster insurance program
8 administered by the Secretary.
'l'ER~[fSATION OF AUTHORITY
9
10
11
SEC.
1G. The Secretary shall not ('stahlish or carry out
the disaster insurance program ,authorized hy this Act if
12 he finds and cert.ifies to the President and the Congress not
(
13 later than June BO, 197B, that disaster insurance with cover1-:1: age ('qnal to or more extensive than that which ,vonld he
15
proyidpd nnder this Aet has been made availahle on reason-
16 able terms h~T private insurance companies. rfhe provisions
17 of this Act shall have no effect from and after snch ('ertifi18 cation by the Secreta,ry.
19
20
JUDICIAL REVIEW
SEC. 17. Orders nnder this A ct shall he estahlishedand
21 issued in accordance with the provisions of section 5fi3 of
22 title fi, United States Code. In case of controversy as to the
23
validity of any snch order, a person who is adversely affeeted
24 t Ilere1ly
25
m<1~', M
. to the sixtipth day after
any time pnor
snch order is issued, file a petition with the United States
16
Dii',triot Oourt for the District of Oolnmbia for jndicial 1'e-
1
~ "iew of sneh ,order in accordance '"lit4 the provision~ of chapter 7 of sneh title.
3
4
IMPI,EMENTATTON
5
SEC. 18. After such consultation with representatives of
6
the insurance industry as may be necessary, the Seoreta,ry
7 shall implement ,the disaster insurance program unless he has
8 certified to the President under section 16 that such program
9
is nnnecessary. In implementing such program, the Secretary
10
is authorized, to the extent not inconsistent with this Aot, to
11
estahlish an industry program for disas.ter insurance with
12 Federal financial assistance or a Government program for
13
disaster insurance wi,th industry assistanee in the same man-
14 ner and under the same term'S and conditions as he is author15
ized to establish programs under chapter II 'Of the Nutionul
16 Flood Insurance Act of 1968.
17
PAYMENTS
18
SEC. 19. Any payments under this Act may be made
19
(after necessary adjustment on acoount 'Of prevrously made
20 underpaynrents or overpayments) in advan'Ce or by way of
21 reimhursement, and in such installments and on such condi22 tions, as the 8ecretary may determine.
23
GOVERNMENT CORPORATIO~ CONTROL ACT
24
SEC. 20. The provisions of the Government Oorporation
25
Control Act shall apply to the program authoriz'ed uuder this
17
1
Act to the same extent rus they apply to wholly owned Gov-
2
ernment corporations.
3
FINALITY OF CERTAIN FINANCIAL TRANSACTIONS
4
SEC.
5
law(1) any financial transaction authorized to be car-
6
7
ried out under this Act, and
(2) any payment authorized to be made or to be
8
9
10
I
21. Notwithstanding the provisions of any other
received
m
connection
with
any
such
financial
transaction,
11 shan be final and conclusive upon all officers of the
12
Government.
13
14
!
'
ADMINISTRATIVE EXPENSES
SEC.
22. Any administrative expenses which may be
15
sustained by the Federal Government in carrying 'Out the
16
disruster insurance pr:ogram authorized under this Act may be
17 paid out of appropriated funds.
I
18
AUTHORIZATION OF APPROPRIATIONS
I I
I
I:
Ii
19
20
SEC.
23. (a) There are hereby authorized to be app:PO-
priated such sums as may be necessary to carry out this Act,
21 including sums-
22
23
(1) to cover administrative expenses of carrymg
out the disaster insurance program;
24
(2) to cover reimbursement of premium equaliza-
25
tion payments made from the disruster insurance fund and
r
18
1
remsurance claims paid under exeess loss reillsUraIle(~
2
coverage; and
3
4
~)
(3) to make such other payments as may he necessrury to ea;rry out the purposes of this Act.
(b) All such sums ,shall be available without fiscal year
() limitation.
(
(
5.903
92D CONGRESS
1ST ~ERSTO:'iI
A BILL
To provide for a national program of disaster
insurance.
By
Mr.
BAYH,
Mr.
CRANSTON,
and Mr. TUNNEY
FEBRUARY 22 (legislative day, FEBBUARY 17), 1971
Read twice and referred to the Committee on
Banking, Housing and Urban AfI'airs
92n CONGRESS
1ST SESSION
s. 1237
TN THE SENATE OF THE UNITED STATES
.MARCH
12, 1971
Mr. TeNXEY (for himself. Mr. BAY If, Mr. ANDERSON. Mr. BnooKE, Mr. Emu:,
~Ir. BFRDICK, Mr. Cmu:s, ~fr. CRANSTON, .Mr. E.\ST'L\ND, ~fr. GRAVEL, Mr.
(Tn:NEY. Mr. H.\RInS. Mr. fLun'. Mr. H.\RTKE. ~[r. HOHINGS. ~fr.HFGIn:s,
.Mr. HF~IPHlmY, xII'. INOUYE, ~fr.•JACKSON, Mr. KENNl:DY. Mr. ~[\GNFSON.
Mr. MANSFIELD, Mr. MCGEE, )11'. MCGOVERN, ~fr. Mu,L}:R, ~fr. MrsKn:, Mr.
PELL, Mr. RANDOLPH, Mr. SCHWEIKER, Mr. SPONG, '}lr. STEYEXS. Mr. TOWER,
and Mr. 1-VII,I,I.UIS) introduced the following bill; which was read twice
and referred to the Committee on Publ ic 1-Vorks
A BILL
rro provide Federal finaneial assistance for the reconstrnction or
repair of private nonprofit medical 0l1re facilities which nre
damaged or ,destroyed by a major disaster.
1
Be it enacted by the Senate and House of Representa-
2
lives of the United States of America in Oongress assembled,
3
rrhat title II of the Disaster Relief Act of 1970 is amended
4
by adding at the end thereof the following new section:
5
6
"PRIVATE )'fEDICAI, CARE FACII,ITIES
"SEC. 255. (a) The President is authorized to make
7 grants for the repair, reconstruction,
II
*(Star Print)
OJ"
replacement of any
2
1
medical care facility which is operated on a nonprofit basis
2 by an 'Organization exempt from taxation under section 501
3
( c), (,d), or (e) of the Intenml Revenue C~..Af rl~p4 and
4 whioh is damaged or destroyed by a major disaster. Such
5 assistance shall be made available only on application, and
6
subject to such rules and regulations as the President may
7 prescribe.·
8
9
" (b) A grant made under the provisions of subsection
(a) shall not exceed-
10
" (1) 100 per centum of the net cost of repairing,
11
restoring, reconstructing, or replacing any such facility
12
on the basis 'of the design of such facility as it existed
13
immediately prior to such disaster and in confonnity
J4
with applicable codes, specifications, and standards; or
]:)
" (2) in the case of any s'uch facility which was
It)
nnder construction when so damaged or destroyed, 50
17
per centUln of ,the net cost of restoring such facility
18
substantially to its condition prior to such disaster, and
19
of completing construction not performed p,rior to such
20
disaster to the extent that the cost of completing such
21
construction .is increased over the original construction
22
cost due to changed conditions resulting from such
23
24
disaster.
" (c) For purposes of this section, 'medical care facility'
25 includes, without limitation, any hospital, diagnostic or treat-
r
:3
1 ment center, or rehabilitation facility a's Isuch terms are de2
fined in section 625 of the Public Health Service Act, and
3 any similar facility offering diagnosis or treatment of mental
4 or physical injury OJ' disease."
5
6
SEC. 2. The amendment made by the first section of this
Act shall take effect as of ,January 1, 1971.
92D CONGRESS
1ST SESSION
s. 1237
A BILL
'1'0 providle' Federal financial assistance for the recon:struction or repair of private nonprofit medical
eare facilities which are damaged or destroyed by
a major disastpr.
By :\11'. Tr;\cNEY, 1\lr. BAYH, Mr. ANDERSON, Mr. BROOKE,
:\Ir. BIBIJE, Mr. BURDICK, Mr. CHILES, Mr. CRANSTON, Mr. EASTLAND, Mr. GRAVEL, Mr. GURNEY, Mr.
HARRIS, Mr. HART, Mr. HARTKE, 1\lr. HOLLINGS, Mr.
HeGI'lEs, Mr. HUMPHREY, Mr. INOUYE, Mr.•TACKHON, Mr. KENNEDY, Mr. MAGNUSON, Mr. MANSFIELD,
1\lr. .McGEE, Mr. McGOV'ERN, Mr. l\IILLER, Mr.
:\IrsKIE, Mr. PELJ" Mr. RANDOLPH, Mr. SCHWEIKER,
Mr. SPONG, Mr. STEV~:NS, Mr. TOWER, and Mr.
\VILLIAMS
1\fARCH 12, 1971
Rl.'ad twice and rpfcrred to the Committee on Public
Works
92n CONGRESS
1ST SESSION
s. 1427
IN THE SENATE OF THE UNITED STA'r~JH
MARCH
Mr.
30, 1971
TUNNEY (for himself, Mr. R\YH, and Mr. CRANSTON) introduced the fol.
lowing bill; which was read twice and referred to the Committee on Pub] ie
Works
A BILL
To amend the Disaster Relief Act of 1970 to provid:e additional
authority for the cancellation of disaster and, etnergency
loans.
1
Be it enacted by the Senate and House of Representa-
2
tives of the United States of America in Congress assembled,
3 That (a) section 231 (1) of the Disas1ter Relief Act of 1970
4
is amended to read as follows:
"
5
" (1) to the extent such loss or dama9'e or lllJU.fY
6
is not compensated for by insurance, or otherwise, (A)
7
shall, in the case of any loan iI,l a principal amount {)f
8
not less than $500 nor more than $3,000, cancel that
9
part of the loan which is in excess of $500, and, in the
10
case of any loan in a principal amount of l)'lOre than
II
2
1
$3.,000, cancel $2,500 of the principal amount of the
2
loan plus 50 per centum of that part of the loan which
3
is in excess of $3,000; except that the total amount
4
call1Celed ullIde,r ,this dause (A) 'Shall not
5
000, and the authority conferred by this clause (A)
6
shall he exemised only with respect 'tlO loans: made to
7
cover losses and damage and injury resulting from major
8
disasters as determined 'by the President, and (B) may
9
defer interest payments or principal payments, or both,
10
in whole or in part, on any loan made under ,this 'section
11
during the first three years of the term of the loan ex-
12
cept that any such deferred payments shall bear interest
13
at the rate determined under section 234 of this Act."
14
(b) Section 232 (1) of such Act is amended to read
e~0eed
$20,-
15 as follows:
16
" (1) to the extent such loss or damage is not
17
penS3Jted for by insurance or otherwise, (A) shall, in
18
the case of any loan in a principal a,mount of not less
19
than $500 nor
20
loan which is in excess of $500, and, in the case of any
21
IO'an in a principal amount of more than $3,000, cancel
22
$2,500 of the principal amount of the loan plus 50 per
23
centum of that part of the loan which is in excess of
24
$3,0.00; except tha,t the total amount canceled under this
25
clause (A) shall not exceed $20,000, and the authority
mOl~
COffi-
than $3,000, <:ancel that pan; of the
H
1
conferred by this clause (A) shall be ex:ercised only with
2
respect to loans m~de to cover losses and damage result-
3
ing from major disasters as determined by the, President,
4
and (B) may defer interest payments or principal 'pay-
5
mentJs, or both, in whole or in part, on any loan made
(j
under this section during ,the first three years of the ,term
7
of the loan e~cept that any suoh deferred payments shall
8
bear interest at the ralte determined under section 234
9
of this Act."
10
11
rSEC.
2. The amendments made hy the first section of this
Act shaH he effecti¥e 'On andai1ter January 1, 1971.
92D CONGRESS
1ST SESSION
s. 1427
A BILL
To amend the Disaster Relief Act of 1970 to
provide additional authority for the cancell~tion of disaster and emergency loans.
By~.
TtJNNEY, Mr. BAYH, and Mr. CRANSTON
MARCH 30, 1971
Read twice and referred to the Committee on Public
Works