[Congressional Record Volume 158, Number 43 (Thursday, March 15, 2012)]
[Senate]
[Pages S1737-S1740]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE:
  S. 2202. A bill to provide for the establishment of a private, 
nonprofit entity to assist the Government in providing disaster 
assistance, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. INOUYE. Mr. President, today, I rise to introduce the 
Preparedness and Resilience Foundation Act, which establishes an 
independent non-profit public charity that acts as a philanthropic 
intermediary between the Federal Emergency Management Agency, FEMA, and 
the private sector. The lack of appropriate mechanisms make it 
difficult for FEMA to receive disaster related funds from private 
sector entities. The Preparedness and Resilience Foundation is intended 
to bridge this gap and improve the collaboration and coordination 
between FEMA and private sector entities. The unique roles that both 
the private and public sectors play is critical not only to the 
leveraging of private and public resources, but to the development of 
capacity and innovation models that will improve America's preparedness 
and resilience to an ever-increasing world of complexity, challenges 
and dangers both natural and man-made.
  The measure will allow FEMA to support and carry out activities that 
promote the resilience of individuals, communities, structures, and 
systems against natural disasters, terrorist attacks, and other human 
caused disasters. Further, the bill would build and

[[Page S1738]]

sustain the capabilities of the public, private, and civic sectors to 
work together to prepare for, prevent, protect against, respond to, 
recover from, and mitigate all such hazards.
  Among other things, the proposed Preparedness and Resilience 
Foundation would function as a 501(c)(3) nonprofit private corporation, 
and not as an agency or instrument of the Federal Government. The 
Foundation would establish an Endowment Fund consisting of donations 
from non-federal entities or assets, to provide endowments and grants, 
and to carry out its mission, and preparedness and resilience 
activities. The proposed measure requires a seven-person Board of 
Directors, whose sole responsibility would be to run the Foundation, 
including management of its employees, and the administering of 
donations to the Foundation. This legislation requires annual 
performance evaluations of the Foundation.
  The Preparedness and Resilience Foundation Act is modeled after the 
Centers for Disease Control and Prevention, CDC, Foundation. The CDC 
Foundation has become not only self-reliant to fund its activities, but 
also generates millions of dollars every year to operate and award 
grants to programs that help the agency meet its stated goals. I 
believe similar achievements can be made under the Preparedness and 
Resilience Foundation Act. Accordingly, I ask my colleagues to support 
this measure, and to bring positive change and innovation to disaster 
management in America.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2202

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

     SECTION 1. SHORT TITLE DEFINITIONS.

       (a) Short Title.--This Act may be cited as the 
     ``Preparedness and Resilience Foundation Act''.
       (b) Definitions.--In this Act--
       (1) the term ``Foundation'' means the Preparedness and 
     Resilience Foundation established under this Act;
       (2) the terms ``Board'' and ``Chair'' mean the board of 
     directors of the Foundation and the Chair of the board of 
     directors, respectively;
       (3) the terms ``Department'' and ``Secretary'' mean the 
     Department of Homeland Security and the Secretary of Homeland 
     Security, respectively;
       (4) the term ``Fund'' means the Endowment Fund established 
     under this Act;
       (5) the terms ``FEMA'' and ``Administrator'' mean the 
     Federal Emergency Management Agency and the Administrator 
     thereof, respectively; and
       (6) the term ``Director'' means the executive director of 
     the Foundation appointed under this Act.

     SEC. 2. ESTABLISHMENT AND DUTIES OF THE FOUNDATION.

       (a) In General.--There is established in accordance with 
     this section a nonprofit private corporation to be known as 
     the ``Preparedness and Resilience Foundation''. The 
     Foundation shall not be an agency or instrumentality of the 
     Federal Government, and officers, employees, and members of 
     the board of directors of the Foundation shall not be 
     officers or employees of the Federal Government.
       (b) Purpose of the Foundation.--The purpose of the 
     Foundation shall be to support and carry out activities that 
     promote the resilience of individuals, communities, 
     structures, and systems against natural disasters and 
     terrorist attacks and other human caused disasters, and that 
     build and sustain the capabilities of the public, private, 
     and civic sectors to work together to prepare for, prevent, 
     protect against, respond to, recover from, and mitigate all 
     such hazards.
       (c) Endowment Fund.--
       (1) In general.--In carrying out subsection (b), the 
     Foundation shall establish an Endowment Fund for providing 
     endowments for positions that are associated with FEMA and 
     dedicated to the purpose described in subsection (b). The 
     Fund shall consist of such donations as may be provided by 
     non-Federal entities and such non-Federal assets of the 
     Foundation (including earnings of the Foundation and the 
     fund) as the Foundation may elect to transfer to the Fund.
       (2) Authorized expenditures of the fund.--The provision of 
     funding and assistance under paragraph (1) shall be the 
     exclusive function of the Fund. Such funds may be expended 
     only for the compensation of individuals holding positions 
     endowed by the Fund, for staff, equipment, quarters, travel, 
     and other expenditures that are appropriate in supporting the 
     positions endowed by the Fund, and for recruiting individuals 
     to hold the positions endowed by the Fund.
       (d) Certain Activities of the Foundation.--In carrying out 
     subsection (b), the Foundation may provide for, with respect 
     to the purpose described in subsection (b)--
       (1) programs of fellowships among State, local, and tribal 
     officials to work and study in association with each other 
     and FEMA or the Department;
       (2) programs of international arrangements to provide 
     opportunities for officials of other countries engaged in 
     preparedness or resilience programs and activities to serve 
     in voluntary or reciprocal capacities in the United States in 
     association with FEMA or the Department, or opportunities for 
     employees of FEMA (or other Federal officials in the United 
     States) to serve in such capacities in other countries, or 
     both;
       (3) studies, projects, and research (which may include 
     applied research on the effectiveness of prevention 
     activities, demonstration projects, and programs and projects 
     involving international, Federal, State, local, and tribal 
     governments, private sector, or non-governmental 
     organizations);
       (4) forums for government officials and appropriate private 
     entities to exchange information, participation in which may 
     include institutions of higher education and appropriate 
     international or non-governmental organizations;
       (5) meetings, conferences, courses, and training workshops;
       (6) programs to improve the collection and analysis of data 
     on preparedness and resilience programs, practices, 
     activities, and events;
       (7) programs for writing, editing, printing, and publishing 
     of books and other materials; and
       (8) other activities to carry out the purpose described in 
     subsection (b).
       (e) General Structure of Foundation; Nonprofit Status.--
       (1) Board of directors.--The Foundation shall have a board 
     of directors, which shall be established and conducted in 
     accordance with subsection (f). The Board shall establish the 
     general policies of the Foundation for carrying out 
     subsection (b), including the establishment of the bylaws of 
     the Foundation.
       (2) Executive director.--The Foundation shall have an 
     executive director, who shall be appointed by the Board, who 
     shall serve at the pleasure of the Board, and for whom the 
     Board shall establish the rate of compensation. Subject to 
     compliance with the policies and bylaws established by the 
     Board pursuant to paragraph (1), the Director shall be 
     responsible for the daily operations of the Foundation.
       (3) Nonprofit status.--In carrying out subsection (b), the 
     Board shall establish such policies and bylaws under 
     paragraph (1), and the Director shall carry out such 
     activities under paragraph (2), as may be necessary to ensure 
     that the Foundation maintains status as an organization 
     that--
       (A) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 (26 U.S.C. 501(c)(3)); and
       (B) is, under section 501(a) of such Code, exempt from 
     taxation.
       (f) Board of Directors.--
       (1) Certain bylaws.--In establishing bylaws under 
     subsection (e)(1), the Board shall ensure that the bylaws of 
     the Foundation--
       (A) include policies for--
       (i) the selection of the officers, employees, agents, and 
     contractors of the Foundation;
       (ii) the acceptance and disposition of donations to the 
     Foundation and for, the disposition of the assets of the 
     Foundation, including ethical standards;
       (iii) the conduct of the general operations of the 
     Foundation; and
       (iv) writing, editing, printing, and publishing of books 
     and other materials, and the acquisition of patents and 
     licenses for devices and procedures developed by the 
     Foundation; and
       (B) do not, including with respect to the activities 
     carried out under the bylaws--
       (i) reflect unfavorably upon the ability of the Foundation 
     or FEMA to carry out its responsibilities or official duties 
     in a fair and objective manner; or
       (ii) compromise, or appear to compromise, the integrity of 
     any governmental program or any officer or employee involved 
     in such a program.
       (2) Composition.--The Board--
       (A) subject to subparagraph (B), shall be composed of 7 
     individuals, appointed in accordance with paragraph (4), 
     who--
       (i) collectively possess education or experience 
     appropriate for representing the general field of emergency 
     management, preparedness, or resilience, and the general 
     public; and
       (ii) each shall be a voting member of the Board; and
       (B) may, through amendments to the bylaws of the 
     Foundation, provide that the number of members of the Board 
     shall be a greater number than the number specified in 
     subparagraph (A).
       (3) Chair.--The Board shall, from among the members of the 
     Board, designate an individual to serve as the chair of the 
     Board.
       (4) Appointments, vacancies, and terms.--Subject to 
     subsection (j), the following shall apply to the Board:
       (A) Vacancies.--Any vacancy in the membership of the Board 
     shall be filled by appointment by the Board, after 
     consideration of suggestions made by the Chair and the 
     Director regarding the appointment. Any such vacancy shall be 
     filled not later than the expiration of the 180-day period 
     beginning on the date on which the vacancy occurs.
       (B) Term of office.--The term of office of each member of 
     the Board appointed under subparagraph (A) shall be 5 years. 
     A member of the Board may continue to serve after the 
     expiration of the term of the member until

[[Page S1739]]

     the expiration of the 180-day period beginning on the date on 
     which the term of the member expires.
       (C) Vacancy does not affect authority.--A vacancy in the 
     membership of the Board shall not affect the power of the 
     Board to carry out the duties of the Board. If a member of 
     the Board does not serve the full term applicable under 
     subparagraph (B), the individual appointed to fill the 
     resulting vacancy shall be appointed for the remainder of the 
     subject term.
       (5) Compensation.--Members of the Board may not receive 
     compensation for service on the Board. The members may be 
     reimbursed for travel, subsistence, and other necessary 
     expenses incurred in carrying out the duties of the Board.
       (g) Certain Responsibilities of the Executive Director.--
     The Director shall--
       (1) hire, promote, compensate, and discharge officers and 
     employees of the Foundation, and define the duties of the 
     officers and employees;
       (2) accept and administer donations to the Foundation, and 
     administer the assets of the Foundation;
       (3) establish a process for the selection of candidates for 
     holding endowed positions under subsection (c);
       (4) enter into such financial agreements as are appropriate 
     in carrying out the activities of the Foundation;
       (5) take such action as may be necessary to acquire patents 
     and licenses for devices and procedures developed by the 
     Foundation and the employees of the Foundation;
       (6) adopt, alter, and use a corporate seal, which shall be 
     judicially noticed;
       (7) commence and respond to judicial proceedings in the 
     name of the Foundation; and
       (8) exercise such other functions as are appropriate, in 
     the determination of the Director.
       (h) General Provisions.--
       (1) Authority for accepting funds.--The Administrator of 
     FEMA may accept and utilize, on behalf of the Federal 
     Government, any gift, donation, bequest, or devise of real or 
     personal property from the Foundation for the purpose of 
     aiding or facilitating the work of FEMA. Funds may be 
     accepted and utilized by the Administrator without regard to 
     whether the funds are designated as general-purpose funds or 
     special-purpose funds.
       (2) Authority for acceptance of voluntary services.--
       (A) In general.--The Administrator of FEMA may accept, on 
     behalf of the Federal Government, any voluntary services 
     provided by the Foundation for the purpose of aiding or 
     facilitating the work of the Federal Government. In the case 
     of an individual, such Administrator may accept the services 
     provided under this subparagraph by the individual until such 
     time as the private funding for such individual ends.
       (B) Clarification.--The limitation established in 
     subparagraph (A) regarding the period of time in which 
     services may be accepted applies to each individual who is 
     not an employee of the Federal Government and who serves in 
     association with FEMA pursuant to financial support from the 
     Foundation.
       (3) Administrative control.--No officer, employee, or 
     member of the Board may exercise any administrative or 
     managerial control over any Federal employee.
       (4) Applicability of certain standards to non-federal 
     employees.--In the case of any individual who is not an 
     employee of the Federal Government and who serves in 
     association with FEMA pursuant to financial support from the 
     Foundation, the Foundation shall negotiate a memorandum of 
     understanding with the individual and the Administrator of 
     FEMA specifying that the individual--
       (A) shall be subject to the ethical and procedural 
     standards regulating Federal employment, scientific 
     investigation, and research findings (including publications 
     and patents) that are required of individuals employed by 
     FEMA, including standards under this Act, the Ethics in 
     Government Act, and the Technology Transfer Act; and
       (B) shall be subject to such ethical and procedural 
     standards under chapter 11 of title 18, United States Code 
     (relating to conflicts of interest), as the Administrator of 
     FEMA determines is appropriate, except that such memorandum 
     may not provide that the individual shall be subject to the 
     standards of section 209 of such chapter (18 U.S.C. 209).
       (5) Financial conflicts of interest.--Any individual who is 
     an officer, employee, or member of the Board may not directly 
     or indirectly participate in the consideration or 
     determination by the Foundation of any question affecting--
       (A) any direct or indirect financial interest of the 
     individual; or
       (B) any direct or indirect financial interest of any 
     business organization or other entity of which the individual 
     is an officer or employee or in which the individual has a 
     direct or indirect financial interest.
       (6) Audits; availability of records.--The Foundation 
     shall--
       (A) provide for biennial audits of the financial condition 
     of the Foundation; and
       (B) make such audits, and all other records, documents, and 
     other papers of the Foundation, available to the Secretary 
     and the Comptroller General of the United States for 
     examination or audit.
       (7) Reports.--
       (A) Annual reports.--
       (i) In general.--Not later than February 1 of each fiscal 
     year, the Foundation shall publish a report describing the 
     activities of the Foundation during the preceding fiscal 
     year.
       (ii) Content.--Each such report required under this 
     paragraph shall include for the fiscal year involved a 
     comprehensive statement of the operations, activities, 
     financial condition, and accomplishments of the Foundation, 
     including--

       (I) an accounting of the use of amounts provided for under 
     subsection (i); and
       (II) an explanation of how such funding has enhanced, and 
     not supplanted, FEMA core missions.

       (B) Specific details.--With respect to the financial 
     condition of the Foundation, each report under subparagraph 
     (A) shall include the source, and a description of, all gifts 
     to the Foundation of real or personal property, and the 
     source and amount of all gifts to the Foundation of money. 
     Each such report shall include a specification of any 
     restrictions on the purposes for which gifts to the 
     Foundation may be used.
       (C) Availability of reports.--The Foundation shall make 
     copies of each report submitted under subparagraph (A) 
     available--
       (i) for public inspection, and shall upon request provide a 
     copy of the report to any individual for a charge not to 
     exceed the cost of providing the copy; and
       (ii) to the appropriate committees of Congress.
       (8) Liaison from the federal emergency management agency.--
     The Administrator of FEMA shall serve as the liaison 
     representative of FEMA to the Board and the Foundation.
       (i) Federal Funding.--
       (1) Authority for annual grants.--
       (A) In general.--The Administrator of FEMA shall--
       (i) for fiscal year 2013, make a grant to an entity 
     described in subsection (j)(9) (relating to the establishment 
     of a committee to establish the Foundation);
       (ii) for fiscal year 2014, make a grant to the committee 
     established under subsection (j), or if the Foundation has 
     been established, to the Foundation; and
       (iii) for fiscal year 2015, and each fiscal year 
     thereafter, make a grant to the Foundation.
       (B) Limitations.--A grant under subparagraph (A) may be 
     expended--
       (i) in the case of an entity receiving the grant under 
     subparagraph (A)(i), only for the purpose of carrying out the 
     duties established in subsection (j)(9) for the entity;
       (ii) in the case of the committee established under 
     subsection (j)(9), only for the purpose of carrying out the 
     duties established in subsection (j) for the committee; and
       (iii) in the case of the Foundation, only for the purpose 
     of the administrative expenses of the Foundation.
       (C) Limit on grant uses.--A grant under subparagraph (A) 
     may not be expended to provide amounts for the Fund.
       (D) Unobligated amounts.--For the purposes described in 
     subparagraph (B)--
       (i) any portion of the grant made under subparagraph (A)(i) 
     for fiscal year 2013 that remains unobligated after the 
     entity receiving the grant completes the duties established 
     in subsection (j)(9) for the entity shall be available to the 
     committee established under subsection (j)(9); and
       (ii) any portion of a grant under subparagraph (A) made for 
     fiscal year 2014 that remains unobligated after such 
     committee completes the duties established in subsection 
     (j)(9) for the committee shall be available to the 
     Foundation.
       (2) Funding for grants.--For the purpose of grants under 
     paragraph (1)--
       (A) there is authorized to be appropriated $1,500,000 for 
     each fiscal year; and
       (B) the Administrator of FEMA may, for each fiscal year, 
     make available not less than $500,000, and not more than 
     $1,500,000 from the amounts appropriated for the fiscal year 
     for the programs of FEMA.
       (3) Certain restriction.--If the Foundation receives 
     Federal funds for the purpose of serving as a fiscal 
     intermediary between Federal agencies, the Foundation may not 
     receive such funds for the indirect costs of carrying out 
     such purpose in an amount exceeding 10 percent of the direct 
     costs of carrying out such purpose. This paragraph may not be 
     construed as authorizing the expenditure of any grant under 
     paragraph (1) for such purpose.
       (4) Support services.--The Administrator of FEMA may 
     provide facilities, utilities, and support services to the 
     Foundation if it is determined by the Administrator to be 
     advantageous to the programs of FEMA or the Department.
       (j) Committee for Establishment of Foundation.--
       (1) In general.--There is established in accordance with 
     this subsection a committee to carry out the functions 
     described in paragraph (2) (referred to in this subsection as 
     the ``Committee'').
       (2) Functions.--The functions referred to in paragraph (1) 
     for the Committee are as follows:
       (A) To carry out such activities as may be necessary to 
     incorporate the Foundation under the laws of the State 
     involved, including serving as incorporators for the 
     Foundation. Such activities shall include ensuring that the 
     articles of incorporation for the Foundation require that the 
     Foundation be established and operated in accordance with the 
     applicable provisions of this Act.

[[Page S1740]]

       (B) To ensure that the Foundation qualifies for and 
     maintains the nonprofit status described in subsection 
     (e)(3).
       (C) To establish the general policies and initial bylaws of 
     the Foundation, which bylaws shall include the bylaws 
     described in subsections (e)(3) and (f)(1).
       (D) To provide for the initial operation of the Foundation, 
     including providing for quarters, equipment, and staff.
       (E) To appoint the initial members of the Board in 
     accordance with the requirements established in subsection 
     (f)(2)(A) for the composition of the Board, and in accordance 
     with such other qualifications as the Committee may determine 
     to be appropriate regarding such composition. Of the Board 
     members so appointed--
       (i) 2 shall be appointed to serve for a term of 3 years;
       (ii) 2 shall be appointed to serve for a term of 4 years; 
     and
       (iii) 3 shall be appointed to serve for a term of 5 years.
       (3) Completion of functions of the committee; initial 
     meeting of board.--
       (A) In general.--The Committee shall complete the functions 
     required in paragraph (1) not later than September 30, 2014.
       (B) Termination.--The Committee shall terminate upon the 
     expiration of the 30-day period beginning on the date on 
     which the Secretary determines that the functions of the 
     Committee have been completed.
       (C) Initial meeting.--The initial meeting of the Board 
     shall be held not later than November 1, 2014.
       (4) Composition.--The Committee shall be composed of 5 
     members, each of whom shall be a voting member. Of the 
     members of the Committee--
       (A) not fewer than 2 shall have broad, general experience 
     in emergency management, preparedness, or resilience; and
       (B) not fewer than 2 shall have broad, general experience 
     in nonprofit private organizations.
       (5) Chairperson.--The Committee shall, from among the 
     members of the Committee, designate an individual to serve as 
     the chairperson of the Committee.
       (6) Terms; vacancies.--The term of members of the Committee 
     shall be for the duration of the Committee. A vacancy in the 
     membership of the Committee shall not affect the power of the 
     Committee to carry out the duties of the Committee. If a 
     member of the Committee does not serve the full term, the 
     individual appointed to fill the resulting vacancy shall be 
     appointed for the remainder of the term subject.
       (7) Compensation.--Members of the Committee may not receive 
     compensation for service on the Committee. Members of the 
     Committee may be reimbursed for travel, subsistence, and 
     other necessary expenses incurred in carrying out the duties 
     of the Committee.
       (8) Committee support.--The Administrator of FEMA may, from 
     amounts available to the Administrator for the general 
     administration of FEMA, provide staff and financial support 
     to assist the Committee with carrying out the functions 
     described in paragraph (2). In providing such staff and 
     support, the Administrator may both detail employees and 
     contract for assistance.
       (9) Grant for establishment of the committee.--
       (A) In general.--With respect to a grant under subsection 
     (i)(1)(A)(i) for fiscal year 2013, an entity described in 
     this paragraph is a private nonprofit entity with significant 
     experience in domestic and international issues of emergency 
     management, preparedness, or resilience.
       (B) Conditions.--The grant referred to in subparagraph (A) 
     may be made to an entity only if the entity agrees that--
       (i) the entity will establish a committee that is composed 
     in accordance with paragraph (4); and
       (ii) the entity will not select an individual for 
     membership on the Committee unless the individual agrees that 
     the Committee will operate in accordance with each of the 
     provisions of this subsection that relate to the operation of 
     the Committee.
       (C) Grant terms.--The Administrator of FEMA may make a 
     grant referred to in subparagraph (A) only if the applicant 
     for the grant makes an agreement that the grant will not be 
     expended for any purpose other than carrying out subparagraph 
     (B). Such a grant may be made only if an application for the 
     grant is submitted to the Administrator containing such 
     agreement, and the application is in such form, is made in 
     such manner, and contains such other agreements and such 
     assurances and information as the Administrator determines to 
     be necessary to carry out this paragraph.

     SEC. 3. PERFORMANCE EVALUATIONS.

       (a) In General.--To ensure that the Foundation and its 
     grantees are meeting their objectives, the Board shall 
     establish and implement performance evaluations--
       (1) that monitor and evaluate the performance and impact of 
     the Foundation program activities in a specific, measurable, 
     achievable, relevant, and timely fashion; and
       (2) that assess the financial accountability of 
     appropriated and donated funds.
       (b) Impact or Outcome Evaluations.--The Board shall 
     establish mechanisms to evaluate and assess the effectiveness 
     of individual programs supported by the Foundation. Impact or 
     outcome evaluations such as balanced scorecard, innovations 
     in risk reduction, and return on investment shall be employed 
     and reported through the annual report of the Foundation 
     under section 2(h)(7)(A).
       (c) Use of Evaluation Results.--The Foundation shall--
       (1) identify through its annual report under section 
     2(h)(7)(A) its greatest needs and the ways that the 
     Foundation or others, will use evaluation results; and
       (2) use such information to set priorities for the 
     Foundation.

                          ____________________