[Senate Report 117-258]
[From the U.S. Government Publishing Office]
Calendar No. 649
117th Congress } { Report
SENATE
2d Session } { 117-258
_______________________________________________________________________
DISASTER MANAGEMENT COSTS MODERNIZATION ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 4654
TO AMEND SECTION 324 OF THE ROBERT T. STAFFORD
DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT
TO INCENTIVIZE STATES, INDIAN TRIBES, AND
TERRITORIES TO CLOSE DISASTER RECOVERY PROJECTS
BY AUTHORIZING THE USE OF EXCESS FUNDS FOR
MANAGEMENT COSTS FOR OTHER DISASTER RECOVERY PROJECTS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 14, 2022.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
39-010 WASHINGTON : 2023
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona RAND PAUL, Kentucky
JACKY ROSEN, Nevada JAMES LANKFORD, Oklahoma
ALEX PADILLA, California MITT ROMNEY, Utah
JON OSSOFF, Georgia RICK SCOTT, Florida
JOSH HAWLEY, Missouri
David M. Weinberg, Staff Director
Zachary I. Schram, Chief Counsel
Christopher J. Mulkins, Director of Homeland Security
Naveed Jazayeri, Senior Professional Staff Member
Pamela Thiessen, Minority Staff Director
Sam J. Mulopulos, Minority Deputy Staff Director
Clyde E. Hicks Jr., Minority Director of Homeland Security
Laura W. Kilbride, Chief Clerk
Calendar No. 649
117th Congress } { Report
SENATE
2d Session } { 117-258
======================================================================
DISASTER MANAGEMENT COSTS MODERNIZATION ACT
_______
December 14, 2022.--Ordered to be printed
_______
Mr. Peters, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 4654]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 4654) to amend
section 324 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act to incentivize States, Indian Tribes,
and Territories to close disaster recovery projects by
authorizing the use of excess funds for management costs for
other disaster recovery projects, having considered the same,
reports favorably thereon with an amendment, in the nature of a
substitute, and recommends that the bill, as amended, do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
IV. Section-by-Section Analysis of the Bill, as Reported.............3
V. Evaluation of Regulatory Impact..................................3
VI. Changes in Existing Law Made by the Bill, as Reported............3
I. Purpose and Summary
S. 4654, the Disaster Management Costs Modernization Act,
would allow excess management funds authorized by the Federal
Emergency Management Agency (FEMA) after a disaster or
emergency to be rolled over after the close out of an incident.
The excess funds can be used for disaster response and recovery
capacity building or for management costs of other open
disasters. Any excess management funds are still subject to the
caps set in law and only available for a period of 5 years.
Under this bill, excess costs are defined as the difference
between management costs authorized by law and the actual
amount expended by the recipient.
II. Background and Need for the Legislation
Financial management is a crucial component of successful
disaster response and recovery. Under the Stafford Act,
management costs are defined to include any indirect cost, any
direct administrative cost, and any other administrative
expense associated with a specific project under a major
disaster, emergency, or disaster preparedness or mitigation
activity or measure.\1\ Eligible expenses for management costs
can include conducting preliminary damage assessments,
trainings, site inspections, closeout reviews and more.\2\
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\1\42 U.S.C. Sec. 5165(b).
\2\Federal Emergency Management Agency, Public Assistance
Management Costs (Interim): FEMA Recovery Policy (FP-104-11-2) (Nov.
12, 2018).
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Signed in 2018, as part of the Federal Aviation
Administration Reauthorization Act, the Disaster Recovery
Reform Act authorized a robust increase in management costs
provided for disasters and emergencies across the country.\3\
According to the National Emergency Management Association
(NEMA), despite an increase in emergency management funding, a
major shortcoming is ``the inability for grantees to utilize
this allowance across all open disasters.''\4\ NEMA recommends
for FEMA to allow grantees to utilize management funds across
different open disasters which will, in turn, strengthen
recovery and mitigation efforts.\5\ Allowing this flexibility
was also proposed in a recent Government Accountability Office
report as an option for FEMA to simplify federal disaster
recovery program requirements.\6\
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\3\Pub. L. No. 115-254 (2018).
\4\National Emergency Management Association, NEMA 2021 Policy
Priorities (2019) (https://www.nemaweb.org/index.php/files/113/2021-
Meeting-of-the-States/295/NEMA--2021-Policy-Priorities.pdf).
\5\Id.
\6\Government Accountability Office, Disaster Recovery: Actions
Needed to Improve the Federal Approach (GAO-23-104956) (Nov. 2022).
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This legislation would allow for the excess management
funds authorized by FEMA to a grantee after a disaster or
emergency to be rolled over after the close out of an incident.
The bill specifies that the excess funds may be used for
activities associated with disaster recovery and preparedness.
By allowing this flexibility, recipients of management costs
will be able to help ensure that they have the necessary
resources to manage future disasters and sustain response and
recovery capabilities between disasters.
III. Legislative History
S. 4654 was introduced on July 28, 2022 by Senators Hassan
(D-NH) and Lankford (R-OK). The bill was referred to the Senate
Committee on Homeland Security and Governmental Affairs. The
Committee considered this bill at a business meeting on August
3, 2022. An amendment in the nature of a substitute was filed
by Senator Hassan and later modified. The modified substitute
amendment incorporated technical drafting assistance from FEMA
and made technical edits to the bill. The Hassan substitute
amendment, as modified, was adopted by voice vote en bloc with
Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff,
Lankford, Romney, Scott, and Hawley present. The Committee
ordered the bill, as amended by the modified Hassan substitute
amendment, to be reported favorably by voice vote en bloc.
Senators present for the vote were: Peters, Hassan, Sinema,
Rosen, Padilla, Ossoff, Lankford, Romney, Scott, and Hawley.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section designates the name of the bill as the
``Disaster Management Costs Modernization Act.''
Section 2. Use of excess funds for management costs
Subsection (a) amends section 324 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by creating a new
subsection within titled ``Use of Excess Funds for Management
Costs.'' This subsection defines the term ``excess funds for
management costs'' as the difference between management costs
authorized by law and the actual amount expended by the
recipient. The subsection also states that the rolled-over
excess funds can be used for disaster response and recovery
capacity building or for management costs of other open
disasters. Additionally, this subsection provides that any
excess management funds are still subject to the caps set in
law and only available for a period of 5 years.
Subsection (b) clarifies this legislation applies to grants
rewarded in relation to a declared major disaster or emergency
that is open on, or made on or after enactment of this Act.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in 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 III--MAJOR DISASTER AND EMERGENCY ASSISTANCE ADMINISTRATION
* * * * * * *
SEC. 324. MANAGEMENT COSTS.
(a) * * *
(b) * * *
(c) Use of Excess Funds for Management Costs.--
(1) Definition.--In this subsection, the term `excess
funds for management costs' means the difference
between--
(A) the amount of the applicable specific
management costs authorized under subsection
(b); and
(B) as of the date on which the incident is
closed, the amount of funding for management
costs activities expended by the grantee or
subgrantee receiving the financial assistance
for costs described in subparagraph (A).
(2) Availability of excess funds for management
costs.--The President may make available to a grantee
or subgrantee receiving financial assistance under
section 403, 404, 406, 407, or 502 any excess funds for
management costs.
(3) Use of funds.--Excess funds for management costs
made available to a grantee or subgrantee under
paragraph (2) may be used for activities associated
with building capacity to respond to or recover from
the types of incidents for which assistance may be made
available under section 403, 404, 406, 407, or 502 and
to provide such assistance, including for providing
training and other activities associated with any major
disaster or emergency declaration, or to otherwise
prepare for such an incident.
(4) Availability.--Excess funds for management costs
made available to a grantee or subgrantee under
paragraph (2) shall remain available to the grantee or
subgrantee until the date that is 5 years after the
date on which the excess funds for management costs are
made available under paragraph (2).
[(c)] (d) Review.--The President shall review the
management cost rates established under subsection (b) not
later than 3 years after the date of establishment of the rates
and periodically thereafter.
* * * * * * *
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