House Report 118-774 - DISASTER MANAGEMENT COSTS MODERNIZATION ACT

[House Report 118-774]
[From the U.S. Government Publishing Office]

118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-774

======================================================================

DISASTER MANAGEMENT COSTS MODERNIZATION ACT

_______

November 26, 2024.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed

_______

Mr. Graves of Missouri, from the Committee on Transportation
and Infrastructure, submitted the following

R E P O R T

[To accompany H.R. 7671]

[Including cost estimate of the Congressional Budget Office]

The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 7671) 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
without amendment and recommends that the bill do pass.

CONTENTS

Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Legislative History and Consideration............................ 3
Committee Votes.................................................. 3
Committee Oversight Findings and Recommendations................. 5
New Budget Authority and Tax Expenditures........................ 5
Congressional Budget Office Cost Estimate........................ 5
Performance Goals and Objectives................................. 11
Duplication of Federal Programs.................................. 11
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 11
Federal Mandates Statement....................................... 11
Preemption Clarification......................................... 11
Advisory Committee Statement..................................... 11
Applicability to Legislative Branch.............................. 11
Section-by-Section Analysis of the Legislation, as Amended....... 12
Changes in Existing Law Made by the Bill, as Reported............ 12

Purpose of Legislation

The purpose of H.R. 7671 is to amend section 324 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Stafford 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.

Background and Need for Legislation

When managing Federal disaster declarations pursuant to the
Stafford Act, state and local government applicants coordinate
large grants through the Federal Emergency Management Agency
(FEMA). Applicants may utilize a percentage of their awards to
offset the administrative requirements of managing such
grants.\1\ Though applicants are increasingly administering
multiple Federal disaster declarations concurrently, management
costs are limited to each specific disaster.\2\
---------------------------------------------------------------------------
\1\42 U.S.C. Sec. 5165b.
\2\GAO: Disaster Recovery, Actions Needed to Improve the Federal
Approach, GAO-23-104956 (November 2022).
---------------------------------------------------------------------------
H.R. 7671 allows grantees to utilize management costs
across all open disasters in their state and directs FEMA to
allow unspent management costs to be made available for a
period of five years from the date of eligibility for capacity
building. Currently, if an applicant does not spend to the caps
set in law for management costs, it will forfeit any excess
administrative cost funding that is not utilized by the time a
disaster is closed. The legislation amends Section 324 of the
Stafford Act to make excess management costs received to manage
grants authorized by Sections 403, 404, 406, 407, or 502
eligible for building disaster response capacity or other
authorized preparedness and mitigation activities.
Allowing the flexibility provided by this Act was proposed
in a 2022 Government Accountability Office report as a solution
to simplify Federal disaster recovery program requirements.\3\
Additionally, a report issued by the congressionally authorized
Wildfire Mitigation and Management Commission recommended FEMA
allow state management costs to cover general program
management functions, instead of being tied to specific
events.\4\
---------------------------------------------------------------------------
\5\FEMA: The Current State of Disaster Readiness, Response, and
Recovery: Hearing Before the H. Comm. On Transp. and Infrastructure,
118th Cong. (Sept. 19, 2023).
\5\FEMA: The Current State of Disaster Readiness, Response, and
Recovery: Hearing Before the H. Comm. On Transp. and Infrastructure,
118th Cong. (Sept. 19, 2023).
---------------------------------------------------------------------------

Hearings

For the purposes of rule XIII, clause 3(c)(6)(A) of the
118th Congress, the following hearing was used to develop or
consider H.R. 7671:
On September 19, 2023, the Subcommittee on Economic
Development, Public Buildings and Emergency Management of the
Committee on Transportation and Infrastructure held a hearing
entitled, ``FEMA: The Current State of Disaster Readiness,
Response, and Recovery.''\5\ The Subcommittee received
testimony from the Honorable Deanne Criswell, Administrator,
FEMA.
---------------------------------------------------------------------------
\5\FEMA: The Current State of Disaster Readiness, Response, and
Recovery: Hearing Before the H. Comm. On Transp. and Infrastructure,
118th Cong. (Sept. 19, 2023).
---------------------------------------------------------------------------

Legislative History and Consideration

H.R. 7671 was introduced in the United States House of
Representatives on March 13, 2024, by Mr. Neguse of Colorado
and referred to the Committee on Transportation and
Infrastructure. Within the Committee on Transportation and
Infrastructure, H.R. 7671 was referred to the Subcommittee on
Economic Development, Public Buildings, and Emergency
Management. The Subcommittee on Economic Development, Public
Buildings, and Emergency Management was discharged from further
consideration of H.R. 7671 on September 25, 2024.
The Committee considered H.R. 7671 on September 25, 2024,
and ordered the measure to be reported to the House with a
favorable recommendation, without amendment, by recorded vote
of 58 yeas to 2 nays.

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.
The vote was as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

Committee Oversight Findings and Recommendations

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. 7671 from the
Director of the Congressional Budget Office:
The Congressional Budget Act of 1974 requires the
Congressional Budget Office, to the extent practicable, to
prepare estimates of the budgetary effects of legislation
ordered reported by Congressional authorizing committees. In
order to provide the Congress with as much information as
possible, the attached table summarizes information about the
estimated direct spending and revenue effects of some of the
legislation that has been ordered reported by the House
Committee on Transportation and Infrastructure during the 118th
Congress. The legislation listed in this table generally would
have small effects, if any, on direct spending or revenues, CBO
estimates. Where possible, the table also provides information
about the legislation's estimated effects on spending subject
to appropriation and on intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act.

ESTIMATED BUDGETARY EFFECTS AND MANDATES INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Spending
Budget Direct Revenues, subject to Pay-As-You-Go Budgetary
Bill Number Title Status Last action function spending, 2025-2034 appropriation, procedures effects after Mandates Contact
2025-2034 2025-2029 apply? 2034
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
H.R. 1586.. Forest Protection Ordered reported. 11/15/23 300 0 0 Not estimated No No Yes Lilia Ledezma
and Wildland
Firefighter
Safety Act of
2023.
H.R. 1586 would authorize federal, state, local, and tribal firefighting agencies to use approved fire retardants to prevent and suppress wildfires without first obtaining a
National Pollutant Discharge Elimination System permit. The bill also would prohibit state courts from issuing injunctions against state or tribal entities' dispersal of aerial
fire retardants as part of wildfire suppression or control. CBO estimates that enacting H.R. 1586 would not affect direct spending or revenues. CBO has not estimated the bill's
effects on spending subject to appropriation. The bill would impose an intergovernmental mandate as defined in the Unfunded Mandates Reform Act (UMRA) that would not exceed the
annual threshold established in UMRA ($100 million in 2024, adjusted annually for inflation). The bill contains no private-sector mandates as defined in UMRA.
H.R. 1720.. Ocean Pollution Ordered reported. 09/18/24 300 0 0 Not estimated No No No Aurora Swanson
Reduction Act II.
H.R. 1720 would allow the Point Loma Wastewater Treatment Plant in San Diego, California, to discharge water without applying for an exemption from the secondary treatment
standards of the National Pollutant Discharge Elimination System if plant meets certain conditions specified in the bill. CBO estimates that enacting H.R. 1720 would not affect
direct spending or revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act.
H.R. 2892.. WARN Act......... Ordered reported. 09/18/24 800 0 0 Between zero No No No Matthew Pickford
and $500,000
H.R. 2892 would require the Government Accountability Office within 18 months of enactment to study and report on the effectiveness of the nation's weather emergency alert
systems. CBO estimates that enacting H.R. 2892 would not affect direct spending or revenues. CBO estimates that implementing the bill would increase spending subject to
appropriation by less than $500,000 over the 2025-2029 period. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 3149.. A bill to Ordered reported. 09/18/24 400 0 0 Between zero No No No Kelly Durand
designate United and $500,000
States Route 20
in the States of
Oregon, Idaho,
Montana,
Wyoming,
Nebraska, Iowa,
Illinois,
Indiana, Ohio,
Pennsylvania,
New York, and
Massachusetts as
the ``National
Medal of Honor
Highway,'' and
for other
purposes.
H.R. 3149 would designate U.S. Route 20 as the National Medal of Honor Highway. CBO estimates that enacting H.R. 3149 would not affect direct spending or revenues. CBO estimates
that implementing the bill would increase spending subject to appropriation by less than $500,000 over the 2025-2029 period. The bill contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 3988.. ARTICLE ONE Act.. Ordered reported. 09/18/24 800 Between - 0 Not estimated Yes No No Kelly Durand
$500,000 and
zero
H.R. 3988 would amend the National Emergencies Act to limit to 30 days the duration of any national emergency declared by the President unless the Congress subsequently approves
or extends the declaration. The bill also would require the President to report to the Congress periodically on the need for and status of declared emergencies. CBO cannot
predict the number or timing of future declarations but expects that most would be approved by the Congress. Under H.R. 3988 emergency declarations could have a shorter duration
than under current law. If that happens direct spending related to such emergencies would decline; CBO estimates any reduction in direct spending would be insignificant. CBO
estimates that enacting the bill would not affect revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental
or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 4043.. H.R. 4043, a bill Ordered reported. 09/18/24 300 0 0 Not estimated No No No Aurora Swanson
to amend the
Save Our Seas
2.0 Act to
expand
eligibility for
certain
wastewater
infrastructure
grants, and for
other purposes.
H.R. 4043 would expand eligibility for certain wastewater infrastructure grants administered by the Environmental Protection Agency. CBO estimates that enacting H.R. 4043 would
not affect direct spending or revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
H.R. 6241.. FULL Act......... Ordered reported. 11/15/23 800 Between zero 0 Not estimated No No No Matthew Pickford
and $500,000
H.R. 6241 would require federal agencies that have lease agreements with the General Services Administration (GSA) to annually report to GSA on their monthly use and occupancy
rates. Under the bill, agencies would be required to return space to GSA if occupancy falls below 60 percent for six months over any one-year period. Enacting H.R. 6241 could
increase direct spending by some agencies that are allowed to use fees, receipts from the sale of goods, and other collections to cover operating costs. CBO estimates that any
net changes in direct spending by those agencies would be negligible because most of them can adjust amounts collected to reflect changes in operating costs. CBO estimates that
enacting H.R. 6241 would have no effect on revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 6984.. A bill to Ordered reported. 09/18/24 800 0 0 Between zero No No No Matthew Pickford
designate the and $500,000
Federal building
located at 300
E. 3rd Street in
North Platte,
Nebraska, as the
``Virginia Smith
Federal
Building,'' and
for other
purposes.
H.R. 6984 would designate the federal building located at 300 E. 3rd Street in North Platte, Nebraska, as the Virginia Smith Federal Building. CBO estimates that enacting H.R.
6984 would not affect direct spending or revenues. CBO estimates that implementing the bill would increase spending subject to appropriation by less than $500,000 over the 2025-
2029 period. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 7671.. Disaster Ordered reported. 09/25/24 450 0 0 Not estimated No No No Jon Sperl
Management Costs
Modernization
Act.
H.R. 7671 would allow state and local governments that receive disaster assistance from the Federal Emergency Management Agency to repurpose unused funds that originally were
allocated for management costs. State and local governments could use the funds to increase their administrative capacity to prepare for, recover from, or mitigate the effects of
disasters. Under current law, unused funds are returned to the Disaster Relief Fund. Under the bill, those governments could retain unused funds for up to five years for
disasters that are declared on or after the bill's enactment date. CBO estimates that enacting H.R. 7671 would not affect direct spending or revenues. CBO has not estimated the
bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 7779.. Good Samaritan Ordered reported. 09/18/24 300 Between zero 0 Not estimated Yes Insignificant No Aurora Swanson
Remediation of and $500,000
Abandoned
Hardrock Mines
Act of 2024.
H.R. 7779 would establish a Good Samaritan pilot program and authorize the Environmental Protection Agency to issue permits for projects to remediate mine residue at abandoned
hardrock mine sites. The bill would establish a remediation fund for federal agencies to administer projects carried out by Good Samaritans (entities that are not current owners
or operators of an abandoned site; had no role in the creation of the mine residue; and are not potentially liable under any law for the remediation, treatment, or control of the
mine residue). The spending would be funded by appropriations and by deposits from nonfederal sources, such as donations, agreements for long-term operations and maintenance
costs, and insurance proceeds if a Good Samaritan fails to complete a project. The bill also would waive the applicability of all other laws with respect to the use of the fund,
including the Antideficiency Act, which could allow amounts to be obligated before expected deposits into the fund are received. However, CBO expects that spending of any such
advance obligations would be constrained by amounts ultimately deposited into the fund. On that basis, CBO estimates that enacting H.R. 7779 would increase net direct spending by
less than $500,000 over the 2025-2034 period and have no effect on revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no
intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 8505.. Household Goods Ordered reported. 09/18/24 400 0 Between zero Not estimated Yes No No Zunara Naeem
Shipping and $500,000
Consumer
Protection Act.
H.R. 8505 would allow the Federal Motor Carrier Safety Administration to assess penalties for entities that illegally ship household goods. The bill also would allow states to
enforce and collect fines on such entities. As a result, CBO estimates that enacting H.R. 8505 could increase revenues because those penalties are recorded in the budget as
revenues. Because the number of entities affected is likely to be small, CBO estimates that the increase in revenues would be less than $500,000 over the 2025-2034 period. CBO
estimates that enacting the bill would have no effect on direct spending. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no
intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 8530.. Improving Federal Ordered reported. 09/18/24 800 Between zero 0 Not estimated Yes No No Matthew Pickford
Building and $500,000
Security Act of
2024.
H.R. 8530 would require federal agencies to respond within 90 days to recommendations by the Federal Protective Service, within the Department of Homeland Security (DHS),
concerning building security. Agencies could adopt or reject those recommendations but would need to explain their rejections. The bill would require DHS to track recommendations
and responses and to report annually to the Congress concerning all recommendations. Enacting H.R. 8530 could increase direct spending by some agencies that are allowed to use
fees, receipts from the sale of goods, and other collections to cover operating costs. CBO estimates that any net changes in direct spending by those agencies would be negligible
because most of them can adjust amounts collected to reflect changes in operating costs. CBO estimates that enacting H.R. 8530 would have no effect on revenues. CBO has not
estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform
Act.
H.R. 8692.. The Amtrak Ordered reported. 09/18/24 400 0 0 0 No No Yes Zunara Naeem
Transparency and
Accountability
for Passengers
and Taxpayer Act.
H.R. 8692 would require Amtrak to hold open meetings in accordance with current requirements for most federal agencies. Because Amtrak is considered a nonfederal entity, CBO
estimates that enacting H.R. 8692 would have no effect on the federal budget. The bill would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA)
that would not exceed the annual threshold established in UMRA ($200 million in 2024, adjusted annually for inflation). The bill contains no intergovernmental mandates as defined
in UMRA.
H.R. 8995.. Baby Changing on Ordered reported. 09/18/24 400 0 0 0 No No Yes Kelly Durand
Board Act.
H.R. 8995 would require Amtrak trains purchased after the bill's enactment to include baby-changing tables in all train restrooms that are subject to the requirements of the
Americans With Disabilities Act of 1990. Because Amtrak is considered a nonfederal entity, CBO estimates that enacting H.R. 8995 would have no effect on the federal budget. The
bill would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) that would not exceed the threshold established in UMRA ($200 million in 2024,
adjusted annually for inflation). The bill contains no intergovernmental mandates as defined in UMRA.
H.R. 9024.. Extreme Weather Ordered reported. 09/18/24 450 0 0 Not estimated No No No Jon Sperl
and Heat
Response
Modernization
Act.
H.R. 9024 would require the Federal Emergency Management Agency (FEMA) to issue guidance for disaster relief programs concerning extreme-temperature events and to consider
innovative preparedness and mitigation projects for such disasters in its grantmaking. The bill also would require FEMA to convene an advisory panel to review the definition of
incident periods for extreme-temperature events and to issue regulations revising those periods. Finally, the bill would require FEMA to study the effects of extreme-temperature
disasters, develop guidance and best practices for responding to such events, and report to the Congress. CBO estimates that enacting H.R. 9024 would not affect direct spending
or revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
H.R. 9313.. Think Differently Ordered reported. 09/18/24 800 0 0 Between zero No No No Matthew Pickford
About Building and $500,000
Accessibility
Act.
H.R. 9313 would direct the Government Accountability Office to report to the Congress concerning accessibility for people with disabilities in all office buildings controlled by
the General Services Administration. CBO estimates that enacting H.R. 9313 would not affect direct spending or revenues. CBO estimates that implementing the bill would increase
spending subject to appropriation by less than $500,000 over the 2025-2029 period. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded
Mandates Reform Act.
H.R. 9541.. POWER Act of 2024 Ordered reported. 09/18/24 450 0 0 Not estimated No No No Jon Sperl
H.R. 9541 would authorize electric utilities that receive disaster assistance from the Federal Emergency Management Agency for emergency power restoration to implement mitigation
activities as part of power restoration. Those actions would not disqualify utilities from receiving mitigation assistance under the Public Assistance Program. CBO estimates that
enacting H.R. 9541 would not affect direct spending or revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no
intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 9591.. A bill to require Ordered reported. 09/18/24 800 Between - 0 Not estimated No No No Emma Uebelhor
the $500,000 and
Administrator of zero
General Services
to sell certain
property related
to United States
Penitentiary,
Leavenworth, and
for other
purposes.
H.R. 9591 would require the General Services Administration (GSA) to sell any property in the State of Missouri associated with the Federal Correctional Institution, Leavenworth,
which is located in Kansas. Net proceeds from the sale would be deposited into the Federal Buildings Fund and recorded in the budget as offsetting receipts (that is, as
reductions in direct spending). Using information from GSA, CBO estimates that the property could be sold for about $500,000; therefore, CBO estimates that enacting H.R. 9591
would decrease direct spending by an insignificant amount. CBO estimates that enacting the bill would not affect revenues. CBO has not estimated the bill's effects on spending
subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
H.R. 9750.. Natural Disaster Ordered reported. 09/25/24 450 0 0 Not estimated No No No Jon Sperl
Recovery Program
Act of 2024.
H.R. 9750 would create a Natural Disaster Recovery Fund, to be administered by the Federal Emergency Management Agency, from which the agency would make grants to state and tribal
governments to cover unmet needs following major disasters. Those governments would determine how funds are spent. The bill also would expand the availability of disaster
assistance for housing repairs and require several reports related to disaster recovery programs. CBO estimates that enacting H.R. 9750 would not affect direct spending or
revenues. CBO has not estimated the bill's effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
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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
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.

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. 7671 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.

Congressional Earmarks, Limited Tax Benefits, and Limited
Tariff Benefits

In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.

Federal Mandates 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 finds that H.R. 7671 does not
preempt any state, local, or tribal law.

Advisory Committee Statement

No advisory committees within the definition of Section
5(b) of the appendix to Title 5, United States Code, are
created by this legislation.

Applicability to 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 the Legislation, as Amended

Section 1. Short title

This section titles the bill as the ``Disaster Management
Costs Modernization Act''.

Section 2. Use of excess funds for management costs

This section amends Section 324 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act to allow for the
use of excess management cost funds for activities associated
with building capacity to prepare for, recover from, or
mitigate the impacts of a major disaster or emergency and to
pay for management costs associated with any major disaster,
emergency, disaster preparedness measure or mitigation
activity. The section makes the excess funds available up to
five years after the date on which the excess funds were made
available. This section also requires the Comptroller General
of the United States to review the managements costs set aside.

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 italics, and existing law in which no
change is proposed is shown in roman):

Changes in Existing Law Made by the Bill, as Reported

ROBERT T. STAFFORD DISASTER RELIEF AND
EMERGENCY ASSISTANCE ACT

* * * * * * *

TITLE III--MAJOR DISASTER AND
EMERGENCY ASSISTANCE ADMINIS-
TRATION

* * * * * * *

SEC. 324. MANAGEMENT COSTS.

(a) Definition of Management Cost.--In this section, the term
``management cost'' includes 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.
(b) Establishment of Management Cost Rates.--
(1) In general.--Notwithstanding any other provision
of law (including any administrative rule or guidance),
the President shall by regulation implement management
cost rates, for grantees and subgrantees, that shall be
used to determine contributions under this Act for
management costs.
(2) Specific management costs.--The Administrator of
the Federal Emergency Management Agency shall [provide
the following percentage rates] provide--
(A) excess funds for management costs as
described in subsection (c); and
(B) the following percentage rates, in
addition to the eligible project costs, to
cover direct and indirect costs of
administering the following programs:
[(A)] (i) Hazard mitigation.--A
grantee under section 404 may be
reimbursed not more than 15 percent of
the total amount of the grant award
under such section of which not more
than 10 percent may be used by the
grantee and 5 percent by the subgrantee
for such costs.
[(B)] (ii) Public assistance.--A
grantee under sections 403, 406, 407,
and 502 may be reimbursed not more than
12 percent of the total award amount
under such sections, of which not more
than 7 percent may be used by the
grantee and 5 percent by the subgrantee
for such costs.
(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)(1) and subsection (b)(2)(B); and
(B) as of the date on which the grant award
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--
(A) activities associated with building
capacity to prepare for, recover from, or
mitigate the impacts of a major disaster or
emergency declared under section 401 or 501,
respectively; and
(B) management costs associated with any--
(i) major disaster;
(ii) emergency;
(iii) disaster preparedness measure;
or
(iv) mitigation activity or measure
authorized under section 203, 204, 205,
or 404.
(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.

* * * * * * *

[all]