crimination provisions of Federal law.

Sec. 3. Extends and modifies certain provisions of

the Disaster Relief Act of 1969 (PL 91-79).

Sec. 3(a) and (b).

Amends the disaster loan authorities

of the Small Business Administration and the Farmers Home Administration by (1) standardizing the interest rates on loans and authorizing such loans even though assistance may be available from private sources, (2) making such loans not to exceed the current repair or replacement cost of the disaster loss, in conformity with current codes and specifications, (3) providing, in cases in which refinancing of existing loans is required, that the amount of the refinancing shall not exceed the amount of the physical loss sustained, and (4) in cases of hardship, raising the forgiveness

feature of disaster loans from $1800 to $2500 in major disaster

areas.

Sec. 3(c). Amends Section 8(c) of PL 91-79 to eliminate the date for completion of State plans and provides that plans developed under this section shall be applicable to local governments as well as individuals.

Sec. 3(d). Further amends Section 8 of PL 91-79 by authorizing matching grants to States up to $25,000 per annum for purposes of improving, maintaining, and updating State disaster assistance plans.

Sec. 3(e). Revises Section 14 of PL 91-79 to make clear that contractors may remove debris from private property in community areas including rural areas. This subsection also provides that State and local governments arrange to provide blanket authorizations for the removal of such debris and that the Government be indemnified against claims arising from such removal.

Sec. 3(f).

Repeals Section 15 of PL. 91-79 which defines "major disaster" for purposes of the Act as a disaster which occurred after June 30, 1967, and on or before December 31, 1970. However, the repealing amendment provides that project claims resulting from disasters declared prior to the date of enactment of this Act shall be disposed of in accordance with the provisions of PL 91-79.

The Section further provides that Sections 2, 4, 10, and 11 of PL 91-79 shall not be in effect after December 31, 1970. Section 2 provides for a 50 percent Federal contribution for the permanent repair or reconstruction of non-federal aid highways and is not necessary in view of a revised standard of repair for public facilities eligible for assistance under PL 81-875. Section 4 with respect to public land entryman is considered to be a duplication of existing authority and is deleted.

Section 10 which provides for temporary housing

has been deleted in favor of a modified temporary housing

provision in PL 81-875.

Section 11 provides for the distri

bution of food stamps and commodities in areas where low

income households would be unable to purchase sufficient quantities of nutritious food. The Department of Agriculture advises that it can undertake this type of program under existing authority and that Section 11 is not necessary. The Section further provides that unemployment compensation benefits authorized by Section 12 of PL 91-79 shall continue in effect only until December 31, 1972. It is expected that a more satisfactory arrangement for providing these benefits will be adopted prior to the 1972 expiration date. All other sections of PL 91-79 would remain in effect.

Sec. 4. Would authorize the Secretary of Commerce to designate areas which have suffered a major disaster to be "redevelopment areas" eligible for grant and loan assistance under the Public Works and Economic Development Act of 1965. Sec. 5. Authorizes 15-year Federal loans by prescribed formula to local governments in cases in which disaster damage has resulted in a substantial loss of property tax revenue. Payments on interest and principal may be deferred during the first three years of the term of the loan. This section also provides for the creation of a separate loan fund for the purpose.

Sec. 6. Permits the President to take effective action to avert or lessen the effects of a catastrophe which

threatens to become a major disaster. It is not necessary for the President to declare a "major disaster" before assistance can be provided under this section.

Sec. 7. The President would be authorized to assign advisory personnel to the chief executive officer of a State or local government in order to assure full utilization of disaster relief and assistance resources and programs. Sec. 8. Forbids discrimination on the grounds of race, color, or national origin in Federal disaster assistance programs and authorizes the President to take the necessary action to insure compliance.

Sec. 9. Authorizes the President to utilize the resources of Federal departments and agencies for use in disaster relief, with or without reimbursement, as he deems appropriate. Similar authority was granted by PL 81-875 but not by PL 89-769 or PL 91-79.

Sec. 10.

Authorizes the establishment by Federal agencies of advisory groups to assist in carrying out the provisions of law relating to Federal disaster preparedness and assistance and authorizes use of funds for that purpose.

Sec. 11. Adopts for purposes of this Act, PL 89-769,

and PL 91-79, the following definitions contained in PL 81-875:

"major disaster", "United States", "State", "Governor", "Local government", and "Federal agency." It also authorizes Federal agencies to liberalize contracting and employment practices in accordance with authority now contained in Section 7 of PL 81-875.

Sec. 12. Adopts the language of PL 81-875 providing that authority and funds shall supplement rather than substitute for other authority conferred or funds provided, and adds the limiting language of PL 89-769 prohibiting

duplication of assistance for a single loss.