[House Report 115-100]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-100
======================================================================
AMENDING THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY
ASSISTANCE ACT CONCERNING THE STATUTE OF LIMITATIONS FOR ACTIONS TO
RECOVER DISASTER OR EMERGENCY ASSISTANCE PAYMENTS, AND FOR OTHER
PURPOSES
_______
April 28, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 1678]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 1678) to amend the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
concerning the statute of limitations for actions to recover
disaster or emergency assistance payments, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Legislative History and Consideration............................ 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 4
Performance Goals and Objectives................................. 5
Advisory of Earmarks............................................. 5
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 6
Federal Mandate Statement........................................ 6
Preemption Clarification......................................... 6
Advisory Committee Statement..................................... 6
Applicability of Legislative Branch.............................. 6
Section-by-Section Analysis of Legislation....................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose of Legislation
H.R. 1678 amends the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act) concerning the statute
of limitations for actions to recover disaster or emergency
assistance.
Background and Need for Legislation
Federal Emergency Management Agency: History
The Federal Emergency Management Agency (FEMA) was
established in 1979 by Executive Order 12148 by President Jimmy
Carter in response to a number of massive disasters in the
1960s and 1970s. As a result of states trying to manage these
disasters, the National Governors Association and others made a
proposal to streamline and cut the number of agencies states
were required to work with following a disaster. Prior to the
creation of FEMA, the federal government's emergency response
mechanisms were scattered among many agencies throughout
government. The creation of FEMA helped to centralize these
authorities and the coordination of the federal government's
response to a disaster. The Disaster Relief Act of 1974 (P.L.
93-288), which constituted the statutory authority for most
federal disaster response activities, especially of FEMA, was
later amended by the Stafford Act (P.L. 100-707).
Following more than two decades as an independent agency,
the Homeland Security Act of 2002 (P.L. 107-296) created the
Department of Homeland Security (DHS), placed FEMA within DHS,
and FEMA's functions were dispersed among various offices and
directorates within DHS. In 2006, following Hurricanes Katrina
and Rita and the intensive Congressional investigations and
oversight, Congress enacted the Post-Katrina Emergency
Management Reform Act of 2006 (PKEMRA) (P.L. 109-295), which
addresses key response roles and authorities and put FEMA back
together again within DHS. PKEMRA authorized the National
Preparedness System and FEMA for the first time in legislation.
Most recently, Congress enacted the Sandy Recovery Improvement
Act (SRIA) (P.L. 113-2), on January 29, 2013, in the wake of
Hurricane Sandy's impact to the East Coast. SRIA provided
additional authorities to expedite and streamline Hurricane
Sandy recovery efforts, reduce costs, and improve the
effectiveness of several disaster assistance programs
authorized by the Stafford Act.
Disaster response and recovery
When the President declares a major disaster or emergency,
the official declaration triggers certain federal response
authorities and financial disaster assistance. In particular,
when a declaration is made, the President is authorized to
direct any federal agency, with or without reimbursement, to
assist state and local governments and protect life and
property. FEMA is responsible for coordinating federal agency
response and ensuring the necessary federal capabilities are
deployed at the appropriate place and time in support of state
and local response efforts. In addition, FEMA provides direct
support and financial assistance to states and local
governments and individuals as authorized under the Stafford
Act.
Statute of limitations
H.R. 1678 clarifies the three-year statute of limitations
on FEMA actions to recover funds from grantees, and establishes
that the statute of limitations begins to run when each project
has been concluded. FEMA's existing regulations for ``payment
of claims'' requires that each subgrantee notify the state when
all projects have been completed. The Committee understands
FEMA does not have a consistent form for how this notification
is provided. Therefore, FEMA should accept reasonable
notifications submitted to meet this requirement as
satisfaction of meeting the requirement to submit an
``expenditure report for project completion as certified by the
grantee,'' as stated in the legislation. This can include a
final letter indicating completion or other written
communication that funds have been expended and the project is
complete. The Committee urges FEMA to work closely with
grantees to encourage the timely closeout of projects. The
Committee also encourages FEMA to develop a uniform process and
clear guidance for grantees and subgrantees to meet this
requirement.
This legislative change is applicable to any action FEMA
has pending against a state, local, or tribal government to
recover disaster assistance payments where the grantee has not
received a final agency determination (e.g., the applicant has
not exhausted all administrative remedies and their appeals
have not concluded).
Hearings
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management, held no hearings on this topic in the
115th Congress. However, the following hearings and roundtable
discussions were held by the Subcommittee on subjects related
to matters contained in H.R. 1678 during the 114th Congress:
``Rebuilding after the Storm: Lessening Impacts and
Speeding Recovery'' held on January 27, 2015. The
purpose of the hearing was to launch an assessment of
the rising costs of disasters, the cost effectiveness
of disaster assistance, strategies to reduce disaster
losses, and the appropriate roles of government and the
private sector, and to consider reforms to save lives
through improved alerts and warning systems and search
and rescue.
``What is Driving the Increasing Costs and Rising
Losses from Disasters?'' held on March 18, 2015. The
purpose of the roundtable was to examine and discuss
data related to disaster costs, the trends observed
over time, and the projections for the future given the
policies in place today.
``The State of Pennsylvania and FEMA Region III are
Leaders in Mitigating Disaster Costs and Losses'' held
on May 28, 2015. The purpose of the roundtable was to
examine disaster costs and losses, focus on hazards
impacting Pennsylvania and the region, and identify
best practices for mitigating and avoiding disaster
impacts.
``Federal Disaster Assistance: Roles, Programs and
Coordination'' held on June 17, 2015. The purpose of
the roundtable was to examine and discuss federal
disaster assistance programs, the requirements and
effectiveness of those programs, and coordination among
various agencies and stakeholders.
``Controlling the Rising Cost of Federal Responses to
Disaster'' held on May 12, 2016. The purpose of the
hearing was to begin exploring potential solutions and
the principles that should be driving solutions to
lower the overall costs of disasters and to help avoid
devastating losses.
Legislative History and Consideration
On March 22, 2017, Congresswoman Lois Frankel (D-FL)
introduced H.R. 1678, a bill to amend the Stafford Act
concerning the statute of limitations for actions to recover
disaster or emergency assistance payments.
On March 29, 2017, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 1678. The
Committee ordered the bill reported favorably to the House by
voice vote with a quorum present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 1678 or ordering the measure
reported. A motion to order H.R. 1678 reported favorably to the
House was agreed to by voice vote with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 1678 from the
Director of the Congressional Budget Office:
April 20, 2017.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1678, a bill to
amend the Robert T. Stafford Disaster Relief and Emergency
Assistance Act concerning the statute of limitations for
actions to recover disaster or emergency assistance payments,
and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Robert Reese.
Sincerely,
Keith Hall.
Enclosure.
H.R. 1678--A bill to amend the Robert T. Stafford Disaster Relief and
Emergency Assistance Act concerning the statute of limitations
for actions to recover disaster or emergency assistance
payments, and for other purposes
H.R. 1678 would establish a three-year statute of
limitations on actions to recover Federal Emergency Management
Agency (FEMA) grants provided to state or local governments
following a declared disaster. That limitation would not apply
in situations where there is evidence of fraud, waste, or
abuse. Under current law, FEMA has the authority to recover
disaster assistance grants that are unspent at any time after
the date of disbursement.
Enacting H.R. 1678 could reduce the amount of unspent
disaster assistance recovered by FEMA. The loss of such
recoveries, which are treated as reductions in direct spending
when they are collected, would increase direct spending of
previously appropriated funds; therefore, pay-as-you-go
procedures apply. Those recoveries, which CBO estimates would
not be significant in any year, are deposited into the Disaster
Relief Fund and are available to be spent without further
appropriation; therefore, CBO estimates that the net effect on
the deficit would be negligible. Enacting the bill would not
affect revenues.
CBO estimates that enacting H.R. 1678 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 1678 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Robert Reese.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to amend
the statute of limitations governing the Administrator of
FEMA's actions to recover disaster or emergency assistance
payments.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 1678 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017),
the Committee finds that enacting H.R. 1678 does not direct the
completion of a specific rule making within the meaning of
section 551 of title 5, United States Code.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 1678 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 1: Statute of limitations
Section 1 amends the Stafford Act to reestablish a three-
year statute of limitations once a report for project
completion has been filed.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT
* * * * * * *
TITLE VII--MISCELLANEOUS
* * * * * * *
SEC. 705. DISASTER GRANT CLOSEOUT PROCEDURES.
(a) Statute of Limitations.--
(1) In general.--[Except] Notwithstanding section
3716(e) of title 31, United States Code, and except as
provided in paragraph (2), no administrative action to
recover any payment made to a State or local government
for disaster or emergency assistance under this Act
shall be initiated in any forum after the date that is
3 years after the date of transmission of the final
expenditure [report for the disaster or emergency]
report for project completion as certified by the
grantee.
(2) Fraud exception.--The limitation under paragraph
(1) shall apply unless there is evidence of civil or
criminal fraud.
(b) Rebuttal of Presumption of Record Maintenance.--
(1) In general.--In any dispute arising under this
section after the date that is 3 years after the date
of transmission of the final expenditure report for the
disaster or emergency, there shall be a presumption
that accounting records were maintained that adequately
identify the source and application of funds provided
for financially assisted activities.
(2) Affirmative evidence.--The presumption described
in paragraph (1) may be rebutted only on production of
affirmative evidence that the State or local government
did not maintain documentation described in that
paragraph.
(3) Inability to produce documentation.--The
inability of the Federal, State, or local government to
produce source documentation supporting expenditure
reports later than 3 years after the date of
transmission of the final expenditure report shall not
constitute evidence to rebut the presumption described
in paragraph (1).
(4) Right of access.--The period during which the
Federal, State, or local government has the right to
access source documentation shall not be limited to the
required 3-year retention period referred to in
paragraph (3), but shall last as long as the records
are maintained.
(c) Binding Nature of Grant Requirements.--A State or local
government shall not be liable for reimbursement or any other
penalty for any payment made under this Act if--
(1) the payment was authorized by an approved
agreement specifying the costs;
(2) the costs were reasonable; and
(3) the purpose of the grant was accomplished.
* * * * * * *
[all]