March 4, 1999
H.R. 707 - Disaster Mitigation and Cost Reduction
Act of 1999
(Fowler (R) FL and 8 cosponsors)
The Administration strongly supports the principles of H.R.707 to develop
and implement measures to mitigate the effects of disasters, both before
and after they occur. The Administration, however, is deeply concerned
that specific provisions of H.R. 707 could reduce the benefits of the bill.
For example, H.R. 707 would:
- Exempt private non-profit entities that provide critical services from
a requirement to apply to the Small Business Administration for a disaster
loan before receiving FEMA disaster assistance. These entities should be
subject to the same requirements that the bill applies to other private
- Establish a pilot State Administration of Damaged Facilities Program.
The Administration questions the need for this provision because similar
programs are already being implemented across the country under existing
- Allocate funds to the States by a formula which is overly prescriptive
and potentially unresponsive to the individual needs of States and
The Administration looks forward to working with the Congress to fashion a
mutually acceptable bill.
H.R. 707 would affect direct spending and receipts; therefore, it is
subject to the pay-as-you-go requirement of the Omnibus Budget
Reconciliation Act of 1990. OMB's scoring estimate of this bill is under