assistance to the 11 Texas counties that were affected by the tornadoes that struck West Texas in April and May of this year. This bill is similar to the bill, S. 3848, which I introduced in the Senate on May 18, 1970, and which is presently being considered by the Senate Public Works Committee. Both of these bills are of great importance to the people of these counties who are now engaged in the slow and expensive process of rebuilding their community. On behalf of the people of these counties, I wish to express my appreciation to you and the members of your Subcommittee for the consideration you are giving this matter. There are certain provisions of both S. 3848 and H.R. 17728 which I would like to call your special attention to since they are not included in the two Omnibus Disaster bills that are being considered by Congress. These provisions authorize the Small Business Administration to make loans to individuals for the purpose of preventing them from losing their homes as a result of the foreclosure of any mortgage lien or the cancellation of any contract of sale or lease. This special loan feature would apply to individuals who are unemployed or otherwise in financial difficulty as a result of these tornadoes. This can be found in sections 4(b) (1) and (2) of both bills. One of the most tragic aspects of a major disaster is the multitude of financial problems that it imposes on the poor people who are affected by it. Not only are their homes destroyed, and their possessions ruined, but, as was the case in Lubbock, their jobs are also eliminated. Once these people lose their source of income, a dreadful spiral begins which leads to eviction from their homes, repossession of their cars, and other personal property and ultimately drives them from the community. Unemployment compensation provided under the present law simply isn't sufficient to meet all the needs of these people. This special loan feature of S. 3848 and H.R. 17728 would prevent much of this suffering and allow these people to retain their homes. Congressman Mahon and I are united in our efforts to obtain special relief for the people of these counties who have suffered so much in recent months. I know that he will present in detail to your Subcommittee the many compelling reasons for this legislation. Be assured that I shall continue my work in the Senate to obtain the additional relief that is so desperately needed in this area. I am enclosing a copy of my bill S. 3848, which I would appreciate being printed together with this letter in the record of your hearings of H.R. 17728. With best wishes, Sincerely, [S. 3848, 91st Cong., second sess.] RALPH W. YARBOROUGH. A BILL To provide additional assistance to the State of Texas for the reconstruction of areas damaged by tornadoes occurring on April 17 and 18, and May 11, 1970 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress hereby recognizes that the State of Texas suffered extensive property loss and damage as a result of tornadoes occurring on April 17 and 18, and May 11, 1970, including loss and damage from wind and flooding caused by such tornadoes, and that there is a need for special measures designed to aid these States in their efforts to reconstruct highways and public works projects, and to otherwise rehabilitate these devastated areas. SEC. 2. (a) As used in this Act, the term "major disaster" means a major disaster as determined by the President pursuant to the Act entitled "An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes", approved September 30, 1950, as amended (42 U.S.C. 1855-1855g). (b) The provisions of this Act shall apply only to those areas of the State of Texas covered by the President's proclamation of May 13, 1970, that a major disaster resulted from the tornadoes which struck certain areas within the State of Texas on April 17 and 18, and May 11, 1970. SEC. 3. Notwithstanding any other provision of law, trailers provided as temporary housing for persons whose dwellings were destroyed by such tornadoes, including, but not limited to, destruction by flood, high waters, wind-driven waters, and high wind, under section 3(d) of the Act of September 30, 1950, entitled "An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes", as amended (42 U.S.C. 1855b), may be sold directly to the persons who are the occupants thereof at prices that are fair and equitable. SEC. 4. (a) In the administration of the disaster loan program under section 7(b) (1) of the Small Business Act, as amended (15 U.S.C. 636 (b) (1)), the Small Business Administration, in the casse of loans to assist persons suffering property loss or damage in the State of Texas as the result of such tornadoes, and to the extent such loss is not compensated for by insurance or otherwise, shall (1) on that part of the Federal share of any such loan in excess of $500 and, (A) cancel up to $5,000 of the loan, and (B) waive interest due on the loan in a total amount of not more than $5,000 over a period of not to exceed four years; (2) make such loans without regard to any limitation on the maximum amount of the Small Business Administration's share or guaranteed percentage of any disaster loan established by regulation or otherwise; and (3) in the administration of the disaster loan program under section 7(b) of the Small Business Act, as amended, the Administrator if he determines that such action is necessary to avoid severe financial hardship may in the case of the total destruction or major property damage of a home or business concern refinance any mortgage or other liens outstanding against the destroyed or damaged property if such refinancing is for the repair, rehabilitation, or replacement of property damaged or destroyed as the result of a disaster meeting the requirements of clause (A) or (B) of paragraph (2) of this subsection, without regard to whether (A) the required financial assistance is otherwise available from private sources, or (B) such person has personal or business assets which could be used to alleviate the loss or damage sustained. (b) (1) In the administration of the disaster loan program under section 7(b) of the Small Business Act, as amended (15 U.S.C. 636(b)), the Small Business Administration, if necessary to prevent the dispossession or eviction of any person from his residence as a result as a result of the foreclosure of any mortgage or lien, cancellation of any contract of sale, or termination of any lease, oral or written, of the property which is such person's residence, and if such foreclosure, cancellation, or termination is related to circumstances arising out of the effects of such tornadoes, shall make such loans for the refinancing of such mortgages or liens and for the payment of installations on such contracts and leases, under the terms and conditions set forth in such section of the Small Business Act as modified by subsection (a) of this section. (2) No application for a loan under this subsection which states that such loan is made necessary by circumstances arising out of the effects of such tornadoes shall be denied for insufficiency of proof of such statement unless the Small Business Administration finds, and sets forth its findings in writing, that such loan is made necessary by circumstances not related to the effects of such tornadoes. (c) In the administration of the disaster loan program under sections 7(b) (1) and 7(f) of the Small Business Act, as amended (15 U.S.C. 636 (b) (1) and (f)) the Small Business Administration may accept applications from, and make loans to, a privately owned school which suffered damage from such tornadoes, on the same terms and conditions as are applicable under such section to a privately owned college or university. (d) No application for a loan under section 7(b) (2) of the Small Business Act, as amended (15 U.S.C. 636 (b) (2) )— (1) filed with the Small Business Administration by a small business concern which has suffered substantial economic injury and is located in an area in which there was suffered property loss or damage in the State of Texas as the result of such tornadoes; and (2) stating that such injury was the result of such tornadoes; shall be denied for insufficiency of proof that such injury was the result of such tornadoes, unless the Small Business Administration finds, and sets forth its findings in writing, that such injury resulted from causes other than such tornadoes. SEC. 5. In the administration of the emergency loan program under subtitle C of the Consolidated Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1961-67), in the case of property loss or damage in the State of Texas resulting from such tornadoes, or uninsurable crop loss due to such tornadoes, the Secretary of Agriculture shall, to the extent such loss or damage is not compensated for by insurance or otherwise, that part of any loan in excess of $500, (1) cancel up to $5,000 of the loan, and (2) waive interest due on the loan in a total amount of not more than $5,000 over a period not to exceed four years. SEC. 6. (a) In the administration of the disaster loan program under section 7 (b) of the Small Business Act, any application for a loan thereunder may be granted, if such loan is for the repair, rehabilitation, or replacement of property damaged or destroyed as the result of a major disaster, without regard to whether the required financial assistance is otherwise available from private sources. (b) In the administration of subtitle III of the Consolidated Farmers Home Administration Act of 1961, relating to emergency loans, any application for a loan thereunder may be granted, if such loan is for the repair, rehabilitation, or replacement of property damaged or destroyed as the result of a major disaster, without regard to whether the Secretary of Agriculture finds that the required financial assistance can be met by private, cooperative, or other responsible sources (including loans the Secretary of Agriculture is authorized to make or insure under any other provision of law). SEC. 7. (a) The Director of the Office of Emergency Preparedness is authorized (1) upon application, to make payments to any person in reimbursement of expenses not otherwise compensated, which were incurred by such person in the removal of debris deposited on privately owned lands as the result of such tornadoes; and (2) to provide by contract for the removal, at the request of the landowner, of debris deposited on privately owned lands as the result of such tornadoes. (b) In the awarding of contracts under this section, preference shall be given to those persons who reside or do business primarily in the locality in which the debris is to be removed. If time is of the essence competitive bidding may be waived by the Office of Emergency Preparedness. (c) As used in this section, the term "person" includes an individual, corporation, association, firm, organization, or local public body. SEC. 8. Upon application by any political subdivision of the State of Texas, the Secretary of Commerce is authorized to make direct grants of money to such political subdivision in amounts equal to the tax or bond obligations outstanding at the time of such tornadoes, upon a showing, to the satisfaction of the Secretary of Commerce, that such obligations cannot be met due to damage or destruction, resulting from such tornadoes, of the revenue sources for meeting such obligations. SEC. 9. (a) The President is authorized to provide dwelling accommodations for any individual or family whenever he determines (1) that such individual or family occupied a house (as an owner or tenant) which was destroyed, or damaged to such extent that it is uninhabitable, as the result of such tornadoes; and (2) that such action is necessary to avoid severe hardship on the part of such individual or family; and (3) that such owner or tenant cannot otherwise provide suitable dwelling accommodations for himself and/or his family. (b) Such dwelling accommodations, including mobile homes, as may be necessary to meet the need, shall be provided through acquisition, acquisition and rehabilitation, or lease. Dwelling accommodations in such housing shall be made available to any such individual or family for such period as may be necessary to enable the individual or family to find other decent, safe, and sanitary housing which is within his or its ability to finance. Rentals shall be established for such accommodations, under such rules and regulations as the President may prescribe and shall take into consideration the financial ability of the occupant. In cases of financial hardship, rentals may be compromised, adjusted, or waived for a period not to exceed twelve months, but in no case shall any such individual or family be required to incur a monthly housing expense (including any fixed expense relating to the amortization of debt owing on a house destroyed or damaged in a disaster) which is in excess of 25 per centum of the individual's or family's monthly income. (c) In the performance of, and with respect to, the powers and duties conferred upon him by this section, the President may— (1) prescribe such rules and regulations as he deems necessary to carry out the purposes of this section; (2) exercise such powers and duties either directly or through such Federal agency or agencies as he may designate; (3) sell or exchange at public or private sale, or lease, any real property acquired or constructed under this section; (4) obtain insurance against loss in connection with any such real property; (5) enter into agreements to pay annual sums in lieu of taxes to the State of Texas or any local taxing authority thereof with respect to any such real property; and (6) include in any contract or instrument made pursuant to this section, such conditions and provisions as he deems necessary to assure that the purposes of this section will be achieved. SEC. 10. (a) If the President determines that, as a result of such tornadoes, low-income households are unable to purchase 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 provisions of the Food Stamp Act of 1964 or as said Act may be amended and to make surplus commodities available pursuant to the provisions of section 3 of Public Law 875 of the Eighty-first Congress. (b) The President is authorized to continue through the Secretary of Agriculture to make such coupon allotments and surplus commodities available to such households so long as he determines necessary, taking into consideration such factors as he deems appropriate, including the consequences of the major disaster on the earning power of the 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 it relates to a Presidential determination regarding availability of food stamps under the provisions of this Act. SEC. 11. The President is authorized to provide to individuals unemployed as a result of such tornadoes such assistance as he deems appropriate while they are unemployed. No individual who is receiving unemployment compensation or the proceeds of private income protection insurance shall be eligible for such assistance. Such assistance as the President shall provide shall not exceed the amount and the duration of payments under the unemployment compensation program of the State of Texas. SEC. 12. The President is authorized to make grants to the State of Texas or any political subdivision thereof for the purpose of lake clearance in cases where, as a result of such tornadoes, any lake has been contaminated by debris which has created conditions hazardous to health and safety. SEC. 13. This Act shall not be in effect after January 1, 1971, except with respect to payment of expenditures for obligations and commitments entered into under this Act on or before such date. SEC. 14. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. DISASTER ASSISTANCE LEGISLATION WEDNESDAY, JULY 29, 1970 HOUSE OF REPRESENTATIVES, OF THE COMMITTEE ON PUBLIC WORKS, Washington, D.C. The committee met at 10:05 a.m., in room 2167, Rayburn Building, Hon. Robert E. Jones (subcommittee chairman) presiding. Mr. JONES. The subcommittee will come to order. We will continue to hear witnesses on behalf of the several bills that are pending before the subcommittee concerning the proposition of disaster assistance legislation, which expires this year. The meeting, as I pointed out yesterday, is for the purpose of continuing the legislation and making necessary changes that we feel are required from the experience we have gained in dealing with the subject. Our first witness this morning will be Brig. Gen. Richard H. Groves, Deputy Director, Civil Works Directorate, Office, Chief of Engineers, Washington, D.C. It is always a pleasure to have you, sir, and if you will introduce your associates, please. STATEMENT OF BRIG. GEN. RICHARD H. GROVES, DEPUTY DIRECTOR, CIVIL WORKS DIRECTORATE, OFFICE, CHIEF OF ENGINEERS, WASHINGTON, D.C.; ACCOMPANIED BY FRANK HELLER, OPERATIONS DIVISION; LIEUTENANT COLONEL JAMES, OFFICE OF THE DEPUTY CHIEF OF STAFF FOR OPERATIONS; MR. MANNING, GENERAL COUNSEL, OFFICE OF CIVIL DEFENSE General GROVES. Thank you, Mr. Chairman. I have on my left Mr. Frank Heller, Operations Division, Office of Chief of Engineers; on my right is Lieutenant Colonel James, Office of the Deputy Chief of Staff for Operations, Department of the Army Staff; and Mr. Manning, General Counsel, Office of Civil Defense. These gentlemen are here to answer any questions that you may have regarding military support and assistance provided in the event of a major disaster. When major disasters are declared by the President, under the provisions of the Federal Disaster Act of 1950, as amended, the Corps of Engineers is usually called upon to participate in the provisions of Federal disaster assistance. This assistance, which is rendered through our civil works program, is accomplished under the authorities avail(137) |