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                                                      Calendar No. 737
                                                      
115th Congress  }                                           {    Report
                               SENATE                          
 2d Session     }                                           {    115-446
_______________________________________________________________________

                                     

                                                       


                  DISASTER RECOVERY REFORM ACT OF 2018

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3041

          TO AMEND THE ROBERT T. STAFFORD DISASTER RELIEF AND
EMERGENCY ASSISTANCE ACT TO PROVIDE FOR DISASTER RECOVERY REFORMS, AND 
                           FOR OTHER PURPOSES
                           
                           

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]




               December 19, 2018.--Ordered to be printed
               
               
               
               
                U.S. GOVERNMENT PUBLISHING OFFICE
                   
89-010                  WASHINGTON : 2018                     
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio                    CLAIRE McCASKILL, Missouri
RAND PAUL, Kentucky                  THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma             HEIDI HEITKAMP, North Dakota
MICHAEL B. ENZI, Wyoming             GARY C. PETERS, Michigan
JOHN HOEVEN, North Dakota            MAGGIE HASSAN, New Hampshire
STEVE DAINES, Montana                KAMALA D. HARRIS, California
JON KYL, Arizona                     DOUG JONES, Alabama

                  Christopher R. Hixon, Staff Director
                Gabrielle D'Adamo Singer, Chief Counsel
       Michael J. Lueptow, Chief Counsel for Governmental Affairs
               Margaret E. Daum, Minority Staff Director
       Charles A. Moskowitz, Minority Senior Legislative Counsel
Christopher J. Mulkins, Minority U.S. Government Accountability Office 
                                Detailee
                     Laura W. Kilbride, Chief Clerk
                     
                     





                                                       Calendar No. 737
                                                       
115th Congress   }                                          {   Report
                                 SENATE
                                                                 
 2d Session      }                                          {   115-446

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



 
                  DISASTER RECOVERY REFORM ACT OF 2018

                                _______
                                

               December 19, 2018.--Ordered to be printed

                                _______
                                

        Mr. Johnson, from the Committee on Homeland Security and
             Governmental Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3041]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3041) to amend the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
to provide for disaster recovery reforms, and for other 
purposes, having considered the same, reports favorably thereon 
with amendments and recommends that the bill, as amended, do 
pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and the Need for Legislation..........................2
III. Legislative History..............................................7
 IV. Section-by-Section Analysis......................................9
  V. Evaluation of Regulatory Impact.................................16
 VI. Congressional Budget Office Cost Estimate.......................16
VII. Changes in Existing Law Made by the Bill, as Reported...........24

                         I. Purpose and Summary

    The purpose of S. 3041 is to improve the way the nation 
prepares for and responds to disasters. It improves our 
nation's resilience by providing financial resources for pre-
disaster mitigation and incentivizing jurisdictions to adopt 
up-to-date building codes. The bill enables improved Federal 
disaster response by providing the Federal Emergency Management 
Agency (FEMA) with more ways to augment its permanent 
workforce. It emphasizes the need for and provides tools to 
execute an effective local response to disasters. It does so by 
empowering states to administer housing assistance efforts, and 
increasing allowable management costs for response and 
recovery. The bill also requires FEMA to review and update its 
method for evaluating requests for major disaster declarations, 
answering longstanding recommendations by the Government 
Accountability Office. Finally, the bill ensures the effective 
administration of Federal funds obligated towards emergency 
response and grant programs through transparency and reporting 
requirements.

              II. Background and the Need for Legislation


Background

    In 1979, President Carter issued Executive Order 12127 to 
merge several Federal disaster-related agencies and create 
FEMA.\1\ The statutory authority for the majority of Federal 
disaster response activities draw from the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act,\2\ which was 
signed into law November 23, 1988, and amended the Disaster 
Relief Act of 1974.\3\ The law tasked FEMA with coordinating 
government-wide relief efforts.\4\ FEMA operated as an 
independent agency for more than twenty years until the 
Homeland Security Act of 2002 merged the agency into the newly-
created Department of Homeland Security (DHS or the 
Department).\5\ Since then, Congress has enacted several major 
pieces of legislation to improve FEMA's organization, external 
interaction, and mission execution, particularly in the wake of 
catastrophic events. These include the 2006 Post-Katrina 
Emergency Management Reform Act and the 2013 Sandy Recovery 
Improvement Act, which both drew lessons from the disasters 
that immediately preceded their enactment.\6\
---------------------------------------------------------------------------
    \1\Exec. Order No. 12127, 43 F.R. 41943 (1979).
    \2\Pub. L. No. 100-707 (1988).
    \3\Pub. L. No. 93-288 (1974); H.R. 2707, 100th Cong. Major Disaster 
Relief and Emergency Assistance Amendments of 1987.
    \4\Id.
    \5\Pub. L. No. 107-296 (2002); H.R. 5005, 107th Cong. Homeland 
Security Act of 2002.
    \6\Post-Katrina Emergency Management Reform Act, Pub. L. No. 109-
295; Sandy Recovery Improvement Act, Pub. L. No. 113-2.
---------------------------------------------------------------------------
    In 2017, multiple major hurricanes and devastating 
wildfires affected nearly 15 percent of the nation's 
population.\7\ The local and Federal efforts to address these 
catastrophic events provided valuable lessons-learned regarding 
the need for improved pre-disaster mitigation efforts, the 
limitations of state and Federal response resources, and FEMA's 
overall role in the disaster response and recovery process.\8\ 
The Committee held two hearings to address the historic 
disaster response in October 2017 and April 2018.\9\ Witness 
testimony from FEMA Administrator Brock Long and Army Corps of 
Engineers Major General Donald Jackson specifically highlighted 
two areas for improvement: the need to better prepare 
jurisdictions to respond at a state and local level, and the 
need to better target pre-disaster mitigation efforts, as 
evidenced by the recovery challenges their agencies faced in 
Puerto Rico and Texas.\10\
---------------------------------------------------------------------------
    \7\FEMA: Prioritizing a Culture of Preparedness: Hearing before the 
S. Comm. on Homeland Sec. & Governmental Affairs, 115th Cong. (2018) 
(statement of Brock Long, Administrator, Fed. Emergency Mgmt. Agency), 
available at https://www.hsgac.senate.gov/imo/media/doc/Testimony-Long-
2018-04-11.pdf.
    \8\Id.
    \9\2017 Hurricane Season: Oversight of the Federal Response: 
Hearing before the S. Comm. on Homeland Sec. & Governmental Affairs, 
115th Cong. (2017); FEMA: Prioritizing a Culture of Preparedness: 
Hearing before the S. Comm. on Homeland Sec. & Governmental Affairs, 
115th Cong. (2018).
    \10\2017 Hurricane Season: Oversight of the Federal Response: 
Hearing before the S. Comm. on Homeland Sec. & Governmental Affairs, 
115th Cong. (2017) (statement of Brock Long, Administrator, Fed. 
Emergency Mgmt. Agency), available at https://www.hsgac.senate.gov/imo/
media/doc/Testimony-Long-2017-10-31.pdf; (statement of Major Gen. 
Donald Jackson, Deputy Commanding Gen. for Civil and Emergency 
Operations: U.S. Army Corps of Engineers), available at https://
www.hsgac.senate.gov/imo/media/doc/Testimony-Robinson%20and%20Jackson-
2017-10-312.pdf.
---------------------------------------------------------------------------
    Congress provided an additional $136 billion through three 
separate supplemental appropriations, including $120 billion in 
budget authority and $16 billion in debt held by the National 
Flood Insurance Fund, to facilitate the Federal response to the 
2017 disasters.\11\ Such a spending rate is unsustainable. In 
January 2018, the congressionally-authorized National Institute 
of Building Sciences released report findings that ``society 
saves $6 for every $1 spent through mitigation grants.''\12\ 
The under-utilized method of disaster management through 
mitigation offers the potential to minimize the impact of 
disasters on citizens while decreasing Federal spending.
---------------------------------------------------------------------------
    \11\Congressional Research Serv., 2017 Disaster Supplemental 
Appropriations: Overview, CRS R45084 (Jan. 25, 2018).
    \12\Nat'l Inst. of Building Sciences, Natural Hazard Mitigation 
Saves: 2017 Interim Report (December 2017), available at http://
www.wbdg.org/files/pdfs/MS2_2017Interim%20Report.pdf.
---------------------------------------------------------------------------

A Focus on Mitigation

    This bill addresses state and local preparedness and pre-
disaster mitigation on several fronts. In 2015, the Government 
Accountability Office (GAO) found that the federal government 
placed far too great an emphasis on post-disaster mitigation 
funding versus pre-disaster resilience efforts and recommended 
that a greater balance be established between pre- and post-
disaster resilience investments.\13\ Section 32 creates a 
mechanism through which the President can prioritize pre-
disaster mitigation efforts. By drawing funds equal to six 
percent of specific grant funds associated with major disasters 
from the Disaster Relief Fund and directing those funds towards 
national priorities on a competitive basis, FEMA will invest in 
high-return mitigation efforts that will save lives and Federal 
tax dollars. The legislation specifically emphasizes that a 
jurisdiction's proposed direct improvement in resiliency and 
its efforts towards adoption of up-to-date building codes will 
be considered as a basis for competition when deciding which 
projects FEMA will fund. In doing so, the Committee seeks to 
incentivize the adoption of current, applicable building codes, 
and does not seek to prohibit a jurisdiction's authority to 
amend codes based on unique local considerations.
---------------------------------------------------------------------------
    \13\Gov't Accountability Office, GAO-15-515, Hurricane Sandy: An 
Investment Strategy Could Help the Federal Government Enhance National 
Resilience for Future Disasters (2015), available at https://
www.gao.gov/products/GAO-15-515.
---------------------------------------------------------------------------
    Additionally, Section 38 addresses the impact on recovery 
when under-insured, state-owned facilities are damaged or 
destroyed by a disaster by requiring FEMA to report on the 
federal cost of insufficient state self-insurance strategies.
    Furthermore, in 2016, GAO found there is limited federal 
assistance available to states for the purpose of seismic risk 
mitigation efforts and made several recommendations to 
strengthen federal mitigation earthquake efforts.\14\ Section 
31 authorizes FEMA to provide assistance under the Hazard 
Mitigation Grant Program and Pre-Disaster Mitigation program 
for activities that help reduce the risk of future damage in 
areas affected by earthquake hazards.
---------------------------------------------------------------------------
    \14\Gov't Accountability Office, GAO-16-680, Earthquakes: 
Additional Actions Needed to Identify and Mitigate Risks to Federal 
Buildings and Implement an Early Warning System (2016), available at 
https://www.gao.gov/products/GAO-16-680.
---------------------------------------------------------------------------

Enabling Local Response and Responsibility

    The insights drawn from 2017 also informed FEMA's 2018 
Strategic Plan, which focused on building a culture of 
preparedness, readying the nation for catastrophic disasters, 
and reducing the complexity of FEMA.\15\ The plan placed 
specific emphasis on empowering local communities to serve the 
primary role in disaster response, citing that ``success is 
best delivered through a system that is Federally supported, 
state managed, and locally executed.''\16\ Refocusing efforts 
primarily at the local level requires FEMA to accurately 
determine a jurisdiction's capability to respond and recover 
without Federal intervention. While the Committee supports 
FEMA's plans to empower local communities to respond to 
disasters, it is vital that those communities be prepared and 
develop actionable plans to conduct and coordinate such a 
response effectively.
---------------------------------------------------------------------------
    \15\Fed. Emergency Mgmt. Agency, 2018-2022 Strategic Plan (2018), 
available at https://www.fema.gov/media-library/assets/documents/96981.
    \16\Id.
---------------------------------------------------------------------------
    Since the 1980s, the Federal Government has become 
increasingly involved in funding and providing disaster 
assistance, in part to the outdated formula that FEMA has used 
to recommend to the President to declare a disaster. Under the 
Stafford Act, the President may declare an emergency 
declaration or major disaster declaration when the situation is 
beyond the capabilities of state, local, and/or tribal 
governments to respond.\17\ However, the formula that FEMA has 
used to assess when to recommend to the President to declare a 
disaster, currently known as the Per Capita Impact Indicator, 
has resulted in an increasing number of disasters being 
declared compared to prior decades, due to FEMA's failure to 
regularly update the formula for inflation.\18\ As a result, 
FEMA has been recommending to the President to make 
declarations under the Stafford Act for events that would not 
have qualified during the 1980s. In this way, FEMA's current 
approach to recommending when to declare disasters is not 
consistent with original congressional intent under the 
Stafford Act, requiring Federal assistance to be provided when 
state, local, or tribal capabilities had been overwhelmed. As 
Chairman Ron Johnson explained at a hearing, ``. . . more and 
more often States are looking to the Federal Government to do 
what I believe was probably more suited toward State and local 
response. As a result, it puts a great deal of stress on 
Federal disaster resources and certainly FEMA.''\19\
---------------------------------------------------------------------------
    \17\44 USC Sec. 206.36.
    \18\Gov't Accountability Office, GAO-12-838, Federal Disaster 
Assistance, Improved Criteria Needed to Assess a Jurisdiction's 
Capability to Respond and Recover on Its Own (2012), available at 
https://www.gao.gov/assets/650/648162.pdf.
    \19\FEMA: Prioritizing a Culture of Preparedness: Hearing before 
the S. Comm. on Homeland Sec. & Governmental Affairs, 115th Cong. 
(2018).
---------------------------------------------------------------------------
    GAO has recommended that FEMA update its process for 
assessing state capacity since its 2012 report: Federal 
Disaster Assistance: Improved Criteria Needed to Assess a 
Jurisdiction's Capability to Respond and Recover on Its 
Own.\20\ Specifically, GAO recommended that FEMA adjust its 
``primary factor'' for determining disaster eligibility, the 
per capita impact indicator, to properly account for 
inflationary changes since its inception in 1986.\21\ GAO noted 
that FEMA's failure to do so from 1986-1999 had left the 
indicator ``artificially low,'' and led to a significant 
increase in the annual number of major disaster declarations 
since 1953.\22\
---------------------------------------------------------------------------
    \20\Gov't Accountability Office, GAO-12-838, Federal Disaster 
Assistance, Improved Criteria Needed to Assess a Jurisdiction's 
Capability to Respond and Recover on Its Own (2012).
    \21\Id.
    \22\Id.
---------------------------------------------------------------------------
    In 2014, then-Committee Ranking Member Tom Coburn released 
a minority staff report on the disaster declaration process, 
finding that ``nearly half of all recently declared `disasters' 
would not have qualified for federal assistance in the 1980s 
and 1990s.''\23\ The report also called on FEMA to ``reform the 
process for recommending disaster declarations and approving 
federal disaster aid,'' encouraging DHS and FEMA to ``move 
swiftly to update the per-capita indicator for inflation to 
cover all years since 1986.''\24\ Senator Coburn also stated, 
``Congress should enact legislation to ensure disaster funding 
is focused on the most serious disasters . . . those that truly 
overwhelm state and local capabilities.''\25\
---------------------------------------------------------------------------
    \23\Ranking Member Tom Coburn, An Imperfect Storm, S. Comm. on 
Homeland Sec. & Governmental Affairs, available at https://
www.hsgac.senate.gov/download/?id=5518F153-BBB6-4AFF-BCDB-F700A58479DD.
    \24\Id.
    \25\Id.
---------------------------------------------------------------------------
    Importantly, the current process for deciding when to 
recommend the President issue a declaration results in fewer 
resources available to provide assistance during major 
emergencies. For example, on the day that Hurricane Harvey made 
landfall in Texas in 2017, FEMA was actively responding to 30 
different disasters across the nation.\26\ Section 37 of this 
bill addresses this issue by requiring FEMA to initiate a 
rulemaking to update the factors it considers when evaluating a 
jurisdiction's request for a major disaster declaration, 
specifically considering its method for estimating the cost of 
major disaster assistance. When updating these methods, FEMA 
should take into account the states' ability to reprioritize, 
and consider a phased-in approach when rebalancing state and 
Federal responsibilities in a manner consistent with original 
congressional intent under the Stafford Act.
---------------------------------------------------------------------------
    \26\FEMA: Prioritizing a Culture of Preparedness: Hearing before 
the S. Comm. on Homeland Sec. & Governmental Affairs, 115th Cong. 
(2018).
---------------------------------------------------------------------------
    Similarly, this bill enables FEMA to better support state-
managed disaster efforts. It does so by reducing the number of 
impediments to efficient execution of disaster response and 
recovery plans and giving FEMA and its state and local partners 
the tools to execute their missions. Sections 11 and 15 address 
direct requests from the FEMA Administrator, presented during 
its April 2018 hearing.\27\ Section 11 enables states to 
administer direct housing solutions, and is intended to 
expedite the acquisition and delivery of housing solutions by 
leveraging state autonomy, while still maintaining 
accountability for Federal dollars. Temporary and long-term 
housing challenges are unique in every disaster, and the 
Committee encourages the consideration of innovative housing 
solutions, including the use of peer-to-peer lodging rentals 
for responders and disaster victims as part of both state and 
Federal strategies. Section 15 increases allowable management 
costs for state and local administration of Federal disaster 
relief efforts. FEMA and the Committee recognize the challenge 
states face in surging capacity to manage post-disaster 
activities, and intend for this investment to enable a more 
effective administration of disaster response programs.\28\
---------------------------------------------------------------------------
    \27\Id.
    \28\Id.
---------------------------------------------------------------------------
    Lastly, Section 22 assists FEMA in expanding and 
maintaining a skilled and experienced workforce, enabling the 
transition of temporary employees to career-conditional status 
after three years of continuous service.

Streamlining FEMA processes

    FEMA's 2018 Strategic Plan includes an objective focused on 
reducing the complexity of FEMA.\29\ The Committee shares this 
intention. Section 23 of the Act requires FEMA to conduct a 
joint study with other applicable agencies aimed at 
streamlining the post-disaster data collection process. This 
study is intended to create efficiencies for disaster victims, 
developing simpler, faster, and more easily understandable 
processes for applying for assistance from multiple Federal 
agencies. Section 21 authorizes FEMA to develop incentive 
strategies to encourage jurisdictions to expeditiously closeout 
their mission assignments in order to provide quicker relief to 
victims and cost savings to taxpayers. Section 19 also aims to 
create a more efficient process for both victims and FEMA, by 
preserving the right to arbitration in lieu of appeal for 
victims whose claims are estimated to be above $500,000.
---------------------------------------------------------------------------
    \29\Fed. Emergency Mgmt. Agency, 2018-2022 Strategic Plan (2018), 
available at https://www.fema.gov/media-library/assets/documents/96981.
---------------------------------------------------------------------------

Special considerations

    Because every disaster presents unique challenges, this 
legislation includes provisions to enable FEMA, along with its 
state and local partners, to better address the unique needs 
that may arise during disaster response and recovery. Section 
18 allows FEMA to establish veterinary emergency teams, which 
will address the unique needs of FEMA canine search teams, as 
well as those animals affected by disasters.
    Section 36 adds private nonprofit center-based childcare to 
the list of ``critical services'' eligible for federal 
assistance. The language in this section is intended to 
narrowly include such facilities that support a jurisdiction's 
overall ability to recover from an emergency or disaster, and 
exclude those that do not necessarily contribute to broader 
community response and recovery--home-based childcare for 
example. Section 12 expands financial assistance eligibility 
for accessibility-related rental housing and infrastructure 
improvements for individuals and households with disabilities.
    Section 10 preserves the President's authority to waive the 
general prohibition on persons or entities from receiving 
financial assistance from another program, also known as 
``duplication of benefits.'' The Committee adopted language to 
ensure that the default application of law is to prohibit such 
duplication, and placed a 45-day time limit on the President's 
ability to provide such a waiver in order to preserve the 
intended progression of need-based assistance options: 
encouraging individuals to utilize insurance as a primary means 
of personal protection, to take small business loans if they 
are uninsured, and to seek federal individual assistance grants 
only as a last resort.
    Section 40 requires FEMA to provide Congress with a 
progress update on a National Preparedness Assessment, which 
GAO recommended FEMA develop in 2010, but FEMA has yet to 
complete.\30\ The assessment is intended to review security 
risks and capabilities to prioritize grant dollars to needed 
localities.
---------------------------------------------------------------------------
    \30\Gov't Accountability Office, GAO-11-318SP, Opportunities to 
Reduce Potential Duplication in Government Programs, Save Tax Dollars, 
and Enhance Revenue (2011), available at https://www.gao.gov/products/
GAO-11-318SP.
---------------------------------------------------------------------------

Eliminating waste

    The significant Federal financial investment that disaster 
response missions require warrants an equally significant level 
of accountability. Toward that end, this bill includes several 
provisions aimed at ensuring that Federal dollars are trackable 
at the grantee and sub-grantee level. Section 24 increases 
transparency and accountability by requiring FEMA to document 
specific information on public assistance and mission 
assignment expenditures and submit a report on public 
assistance recipient and sub-recipient contracts. The Committee 
intends for this reporting requirement to encourage FEMA to 
integrate improved sub-grantee accounting capabilities into its 
accountability database software and lead to the availability 
of near real-time information on sub-grantee spending. By 
requiring FEMA to begin tracking this data, Congress, DHS's 
Inspector General, and GAO will be able to provide greater 
oversight of sub-grantee spending.
    Finally, in 2012, GAO identified multiple factors that 
contribute to the risk of duplication among four FEMA disaster 
preparedness grant programs. As a result, GAO recommended that, 
to help reduce the risk of unnecessary duplication and 
strengthen the administration and oversight of these programs, 
the FEMA Administrator should take steps ``to ensure that FEMA 
collects project information with the level of detail needed to 
better position the agency to identify any potential 
unnecessary duplication within and across the four grant 
programs, weighing any additional costs of collecting these 
data.''\31\ GAO included this recommendation in its annual 
report to Congress on duplication, overlap, and fragmentation. 
Section 41 requires FEMA to provide Congress with a progress 
update on FEMA's identification of ways to reduce funding 
duplications within non-natural disaster preparedness grants, 
as recommended by GAO.
---------------------------------------------------------------------------
    \31\Gov't Accountability Office, GAO-12-303, Homeland Security: DHS 
Needs Better Project Information and Coordination among Four 
Overlapping Grant Programs (2012), available at https://www.gao.gov/
products/GAO-12-303.
---------------------------------------------------------------------------

                        III. Legislative History

    Chairman Johnson introduced S. 3041, the Disaster Recovery 
Reform Act of 2018 on June 11, 2018. The bill was referred to 
the Committee on Homeland Security and Governmental Affairs. 
Ranking Member Claire McCaskill joined as a cosponsor on June 
26, 2018, and Senator John Kennedy joined as a cosponsor on 
June 29, 2018.
    The Committee considered S. 3041 at a business meeting on 
June 13, 2018. Chairman Johnson offered a modified substitute 
amendment that the Committee adopted by unanimous consent.
    Chairman Johnson offered Johnson Amendment 1 as twice 
modified. The amendment adjusts the effective date for multiple 
sections of the bill to avoid unintentional retro-activity, and 
requires FEMA to assess its methods for reviewing Federal 
disaster declaration requests and modernize those processes 
through rulemaking. That amendment was adopted by voice vote 
with Senators Johnson, Portman, Lankford, Enzi, McCaskill, 
Carper, Peters, Hassan, Harris, and Jones present.
    Senator Peters offered Peters Amendment 1. The amendment 
strikes a provision that would prohibit the President from 
determining that a Small Business Administration loan is a 
duplication of assistance, and precludes an individual from 
receiving FEMA Individual Assistance. That amendment was 
adopted by voice vote with Senators Johnson, Portman, Lankford, 
Enzi, McCaskill, Carper, Peters, Hassan, Harris, and Jones 
present. Senator Hassan voted ``no'' for the record.
    Senators Harris and Carper offered Harris-Carper Amendment 
1. The amendment would require FEMA to enter into a contract 
with the National Academy of Medicine to conduct a study on 
identifying best practices in determining mortality counts as a 
result of major disasters. Chairman Johnson offered a second-
degree amendment to Harris-Carper Amendment 1, which would 
preclude the authorization of any additional funds to conduct 
the study. The Johnson second-degree amendment was adopted by a 
roll call vote of 8 yeas to 7 nays. Senators Johnson, Portman, 
Lankford, and Enzi voted for the amendment. Senators McCain, 
Paul, Hoeven, and Daines voted in favor of the amendment by 
proxy. Senators McCaskill, Carper, Peters, Hassan, Harris, and 
Jones voted against the amendment. Senator Heitkamp voted 
against the amendment by proxy. Harris-Carper Amendment 1 as 
modified by the Johnson second-degree amendment was adopted by 
a voice vote with Senators Johnson, Portman, Lankford, Enzi, 
McCaskill, Carper, Peters, Hassan, Harris, and Jones present.
    Seven amendments were adopted by voice vote en bloc with 
Senators Johnson, Portman, Lankford, Enzi, McCaskill, Carper, 
Peters, Hassan, Harris, and Jones present. Those amendments 
were: Portman Amendment 1 as modified, which requires FEMA to 
coordinate with state and local architect and engineer 
organizations on post-disaster building safety assessment best 
practices; Enzi Amendment 1, which requires the FEMA 
Administrator to complete a national preparedness assessment 
and report to Congress on capabilities gaps and their costs; 
Enzi Amendment 2 as modified, which requires the FEMA 
Administrator to report on the agency's efforts to identify and 
prevent unnecessary duplication within and across the non-
natural disaster preparedness grant programs; McCaskill 
Amendment 1 as amended by a Johnson Second Degree Amendment, 
which extends unemployment assistance to eligible residents of 
Puerto Rico and the U.S. Virgin Islands until 52 weeks after 
the date of disaster declarations for Hurricanes Irma and 
Maria; McCaskill Amendment 2, which required FEMA to collect 
information on FEMA grant recipients and sub-recipients prior 
to disaster closeouts; Harris Amendment 2, which requires FEMA 
to conduct a review of the public assistance eligibility 
process for underground water infrastructure associated with 
major disaster declarations; and Jones Amendment 1, which 
suggests FEMA conduct a study to assess the effectiveness of 
evacuation routes to accommodate anticipated traffic flows in 
cooperation with the Federal Highway Administration and state 
and local governments.
    The bill, as amended, was ordered reported favorably by a 
voice vote. Senators Johnson, Portman, Lankford, Enzi, 
McCaskill, Carper, Peters, Hassan, Harris, and Jones were 
present.
    Consistent with Committee Rule 11, the Committee reports 
the bill with a technical amendment by mutual agreement of the 
Chairman and Ranking Member.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title; Table of contents

    This section designates the title of the bill as the 
``Disaster Recovery Reform Act of 2018'' and lists the table of 
contents.

Section 2. Applicability

    This section sets the default application of the bill to 
August 1, 2017, for all sections not otherwise noted.

Section 3. Definitions

    This section establishes definitions of the terms 
``administrator,'' ``agency,'' and ``state.''

Section 4. Wildfire prevention

    This section permits the President to provide hazard 
mitigation aid to states affected by wildfires, even when a 
major disaster is not declared. A report is due within one year 
of enactment summarizing projects funded under the new section.

Section 5. Additional activities

    This section qualifies what activities hazard mitigation 
aid recipients can conduct to mitigate against wildfire or 
windstorm damage. The list of examples includes, among other 
things, constructing erosion barriers, spillways, and dams.

Section 6. Code implementation enforcement

    This section includes building code and floodplain 
enforcement in the general Federal assistance the President may 
provide during a major disaster response. In addition, the 
President may contribute to wages for code implementation and 
enforcement for up to six months after a major disaster.

Section 7. Program improvements

    This section removes the cap on large in-lieu contributions 
to public facilities (formerly 90 percent of cost-share) and 
private facilities (formerly 75 percent of cost-share). This 
section also prohibits FEMA from conditioning assistance on the 
adoption of alternative procedures. Additionally, this section 
establishes a presumption that costs incurred for a grant 
project are reasonable and eligible if the project estimate was 
certified by a professional engineer and accepted by FEMA.

Section 8. Prioritization of facilities

    This section requires FEMA to provide annual training to 
state, tribal, and local government first responders and 
utility companies on providing assistance to health care 
facilities during an emergency, preparing for potential power 
outages, and coordinating emergency response plans.

Section 9. Guidance on evacuation routes

    This section requires FEMA, in conjunction with the Federal 
Highway Administration (FHA), to issue guidance to assist 
states in the planning and maintenance of evacuation routes. 
This section also establishes criteria FEMA should use when 
creating evacuation route guidance and criteria FHA should 
consider in the design and maintenance of evacuation route 
guidance. Additionally, FEMA, in conjunction with the FHA, may 
conduct studies to determine the capability of evacuation 
routes and to assist in the creation of evacuation route 
guidance.

Section 10. Duplication of benefits

    After a request from a Governor on behalf of a state or 
other entity or person that suffered a loss in a major 
disaster, this section permits the President to waive the 
general prohibition on Federal assistance being provided to a 
party that has received financial assistance from another 
program or source. The President must decide whether to issue 
the waiver within 45 days of submission. This section is 
applicable only to disaster or emergency assistance provided on 
or after the date of enactment of this Act.

Section 11. State administration for direct temporary housing and 
        permanent housing construction

    This section allows FEMA to provide block grants (100 
percent cost share) to states for disaster housing assistance, 
provided a state housing strategy is submitted to and approved 
by the President. The strategy must outline how the state will 
work with Federal organizations, local entities, and individual 
survivors to meet housing needs. The strategy must also include 
the creation of a State Disaster Housing Task Force to bring 
national and local parties together to evaluate housing 
requirements and determine solutions. Prior to approving an 
application for housing assistance, the President must conduct 
a quality assessment and ensure there are sufficient controls 
in place to prevent waste within the requested housing 
programs. Additionally, the DHS Inspector General (IG) will 
periodically audit the programs. Within 18 months of enactment, 
the DHS IG must submit a report to Congress regarding the role 
state or tribal governments play in providing housing 
assistance, their ability to provide such assistance, and the 
efficacy of the assistance provided. Furthermore, within 12 
months of enactment, FEMA must submit a report to Congress on 
possible incentive awards to offer to state and tribal 
governments to encourage participation. Finally, FEMA must 
issue final regulations regarding this section within two years 
of enactment.

Section 12. Assistance to individuals and households

    This section clarifies that financial assistance to rent 
alternative housing after a disaster will not count towards the 
maximum amount of assistance available to an individual or 
household, and eliminates the cap on individual financial 
assistance in regards to accessibility-related expenses for 
individuals with disabilities. This section is applicable only 
to disaster or emergency assistance provided on or after the 
date of enactment of this legislation.

Section 13. Multifamily lease repair assistance

    This section allows FEMA to lease multifamily rental 
properties impacted by or located in a major disaster area. It 
allows FEMA to repair the rental properties in order to make 
them available to meet emergency housing needs, and to deduct 
the cost of repairs from the value of the lease agreement, even 
if the total is greater than the value of the lease agreement.

Section 14. Private nonprofit facility

    This section adds food banks to the list of private 
nonprofit facilities eligible for FEMA assistance. The 
applicability of this section extends to disaster or emergency 
assistance provided on or after February 9, 2018.

Section 15. Management costs

    This section changes the definition of management cost to 
include indirect costs, direct administrative costs, and other 
administrative costs. It also establishes reimbursement limits 
to grantees for management costs for hazard mitigation and 
public assistance programs. A grantee under the hazard 
mitigation section 404 may be reimbursed up to 15 percent of 
the total grant, and a grantee under public assistance sections 
403, 406, 407, or 502 may be reimbursed up to 12 percent of the 
total grant award.

Section 16. Flexibility

    This section allows certain disaster assistance debts to be 
waived if such assistance was distributed based on an error by 
FEMA; there was no fault on behalf of the debtor; and the 
collection of the debt would be against equity and good 
conscience. The debt may not be waived if the debt involves 
fraud or misrepresentation. This section also places the DHS IG 
in charge of determining what percentage of assistance was 
distributed based on an error. Additionally, this section 
establishes a statute of limitations requiring the process of 
recouping any assistance to begin within 3 years of the date 
the assistance was received. The section applies to disaster or 
emergency assistance provided on or after January 1, 2004.

Section 17. Additional disaster assistance

    When providing economic development grants after a disaster 
or emergency under the Public Works and Economic Development 
Act, this section allows the Secretary of Commerce to encourage 
grantees to use assistance on hazard mitigation. This section 
also extends the Emergency Management Assistance Compact grants 
and Emergency Management Performance Grant Program through 
2022.

Section 18. National veterinary emergency teams

    This section establishes a pilot program allowing the 
creation of veterinary emergency teams at one or more colleges. 
This section also outlines the responsibilities of national 
veterinary emergency teams, to include assistance for FEMA 
canine search teams, care for impacted domestic and livestock 
animals, and treatment of zoonotic diseases.

Section 19. Right of arbitration

    This section allows applicants to request arbitration for a 
dispute over $500,000 after the initiation of their first 
appeal. Those applicants requesting arbitration forfeit their 
right to further appeal. FEMA must issue regulations within two 
years to implement this section.

Section 20. Unified federal environmental and historic preservation 
        review

    This section requires the FEMA Administrator to review and 
submit a report to Congress on the expedited interagency 
environmental and historic preservation review process and 
survey other agencies' categorical exclusions. This section 
also requires the Administrator to issue regulations to 
implement any recommendations, including categorical 
exclusions, identified in the report and survey.

Section 21. Closeout incentives

    This section allows the FEMA Administrator to develop 
incentives that would encourage state, local, and tribal 
governments to close out expenditures and activities related to 
disaster or emergency assistance in a timely manner. 
Additionally, FEMA must work to reduce the time to close out 
disaster program awards.

Section 22. Performance of services

    This section allows the FEMA Administrator to appoint 
temporary employees, who have served continuously for at least 
three years, to positions within FEMA in the same manner as 
competitive service employees. Appointed employees become 
career-conditional employees, unless they have already 
completed the career tenure service requirements.

Section 23. Study to streamline & consolidate information collection

    This section directs the FEMA Administrator, in conjunction 
with other appropriate Federal agencies, to conduct a study and 
develop a plan to make the collection of information from 
disaster assistance applicants more efficient and less 
burdensome. It also requires FEMA to regularly report 
information on Federal disaster assistance awards to the public 
via a website. FEMA, coordinating with the other appropriate 
agencies, must submit the plans to comply with these 
requirements to Congress within one year of enactment.

Section 24. Agency accountability

    This section creates transparency in grant funding and 
directs FEMA to provide regular reports on its website 
regarding grant awards, disaster spending, disaster contracts, 
and other related disaster activities. Within five days of an 
award over $1 million being granted, FEMA is required to 
publish information regarding the specifics of the award. FEMA 
must also publish information on any mission assignment orders 
for over $1 million. FEMA is required to update the cost 
estimate of mission assignments within ten days of the end of 
each month until completion of a project. Additionally, FEMA 
must publish Disaster Relief Monthly Reports within ten days of 
the beginning of each month, including the method and data used 
to obtain the results displayed in the report. Furthermore, 
FEMA must publish information, within ten days of the end of 
each month, regarding contracts awarded with a value over $1 
million and provide Congress with a summary report of contracts 
awarded within ten days of the end of each fiscal year. 
Finally, within 180 days of enactment FEMA is required to begin 
collecting information on all contracts awarded for greater 
than $500,000 and provide a report on this information to 
Congress within 365 days of enactment.

Section 25. Audit of contracts

    This section prohibits FEMA from reimbursing any contract 
that prohibits the FEMA Administrator or the Comptroller 
General of the United States from performing oversight or 
auditing over the contract.

Section 26. Inspector general audit of FEMA contracts for tarps and 
        plastic sheeting

    This section requires the DHS IG to audit FEMA contracts 
for tarps and plastic sheeting in response to Hurricanes Irma 
and Maria in Puerto Rico and the U.S. Virgin Islands, beginning 
no later than 30 days after enactment. This section also 
outlines what considerations the DHS IG should review during 
the audit. Within 270 of commencement of the audit, the DHS IG 
must provide Congress a report on his findings.

Section 27. Relief organizations

    This section clarifies long-term recovery groups and 
domestic hunger relief organizations as eligible organizations 
that can be used to provide relief and assistance under the 
Stafford Act.

Section 28. Guidance on inundated and submerged roads

    This section directs FEMA to provide state, local, and 
tribal governments guidance on assessing and repairing or 
replacing submerged roads that were damaged or destroyed by a 
disaster.

Section 29. Guidance and recommendations

    This section requires FEMA to provide guidance on Federal 
assistance application processes to community associations that 
are providing essential services of a governmental nature. FEMA 
must provide a proposal to Congress within 90 days of enactment 
regarding the eligibility of community areas and cooperatives 
to receive disaster assistance.

Section 30. Guidance on hazard mitigation assistance

    This section requires the FEMA Administrator to provide 
guidance regarding the acquisition and upkeep of properties 
purchased with FEMA funds as a mitigation measure. This action 
must take place within 180 days of enactment.

Section 31. Additional hazard mitigation activities

    This section allows mitigation assistance funds to be spent 
on seismic detection equipment aimed at earthquake early 
warning.

Section 32. National public infrastructure predisaster hazard 
        mitigation

    This section clarifies how technical and financial 
assistance can be used, permitting assistance to be used to 
enforce the latest codes and standards. The President is 
permitted to reallocate any funds given to a state for this 
purpose that are not used within three years of the initial 
allocation. These reallocated funds are to be awarded to cost-
effective mitigation activities on a competitive basis. This 
section allows the President to set aside funds equal to up to 
six percent of declared disaster estimates and place that 
amount in an account for national-level mitigation priority 
projects.

Section 33. Additional mitigation activities

    This section allows the President to contribute up to 75 
percent of the cost of mitigation activities that are deemed 
cost-effective and effective in mitigating hazards and 
potential damage. The section also establishes how eligible 
cost estimates are determined and clarifies code applicability 
for mitigation projects. The applicable code is the latest 
published codes or standards, even if they went into effect 
after the time the disaster occurred. Additionally, the section 
requires FEMA to issue a final rulemaking within 18 months of 
enactment over the definition of the terms ``resilient'' and 
``resiliency,'' with interim guidance provided within 60 days 
of enactment. FEMA is required to report to Congress a summary 
of the guidance issued within two years of enactment.

Section 34. Flood insurance

    This section provides an exception for educational, 
medical, correctional, and emergency services buildings from 
the reduction of federal assistance for flood damage. It 
restricts the reduction to apply only once per complex, vice 
multiple per-building penalties in a single, blanket-insured 
complex.

Section 35. Certain recoupment prohibited

    This section requires FEMA to deem any covered disaster 
assistance provided to have been properly procured. It defines 
``covered disaster assistance'' as assistance resulting from a 
situation in which the DHS IG determines that assistance was 
based on the inaccurate advice of a FEMA Technical Assistance 
contractor. This section also requires FEMA to provide funding 
for the covered disaster assistance if it was previously 
provided but subsequently withdrawn.

Section 36. Federal assistance to individuals and households and 
        nonprofit facilities

    This section grants fee waivers for documents lost during 
disasters, specific to passports and certain citizenship and 
employment documents. This section also adds private nonprofit 
center-based childcare to the list of critical facilities 
eligible for Federal assistance. Within 365 days of enactment, 
FEMA and other related agencies must provide Congress a report 
on the costs associated with fee waivers. This section applies 
to disasters declared on or after enactment.

Section 37. Cost of assistance estimates

    This section requires FEMA to review and adjust the method 
used in assessing eligibility for major disaster declarations 
and in determining the estimated cost of assistance. FEMA must 
provide a report on the matter to Congress within 270 days of 
enactment. Within two years of enactment, FEMA must review the 
factors considered in evaluating requests for disaster 
declarations and how FEMA calculates disaster assistance cost 
estimates and initiate rulemaking to update them.

Section 38. Report on insurance shortfalls

    Starting within two years of enactment, this section 
requires FEMA to submit a report to Congress on an annual basis 
regarding instances where state self-insurance of state owned 
infrastructure was insufficient to cover the cost of flood 
damage.

Section 39. Post disaster building safety assessment

    This section requires FEMA to work with state and local 
entities to establish guidance for building safety assessments 
by licensed architects and engineers post disaster. FEMA must 
publish the guidance within one year of enactment. FEMA is also 
required to update the National Incident Management System to 
include the functions of architects, in order to ensure those 
functions include assisting communities with mitigating 
activities, post disaster recovery, and participating on 
building safety assessment teams.

Section 40. FEMA updates on national preparedness assessment

    This section requires FEMA to submit a report to Congress 
providing an update on FEMA's progress in completing a national 
preparedness assessment and identifying potential costs of 
establishing certain disaster response capabilities. The report 
must be provided within six months of enactment of this bill 
and every six months after until FEMA has completed the 
assessment.

Section 41. FEMA report on duplication in non-natural disaster 
        preparedness grant programs

    This section requires FEMA to submit a report within 180 
days of enactment to Congress providing information on 
duplicative aspects of the non-natural disaster grant program 
and efforts to prevent such duplication.

Section 42. Extension of unemployment assistance for the Commonwealth 
        of Puerto Rico and the United States Virgin Islands

    This section requires the President to make individual 
unemployment assistance available for 52 weeks after the date 
of disaster declaration for the disasters declared for 
Hurricane Irma and Hurricane Maria in Puerto Rico and the U.S. 
Virgin Islands.

Section 43. Study and report

    This section requires FEMA, in conjunction with the 
National Academy of Medicine, to conduct a study on best 
practices for mortality counts as a result of major disasters. 
This study will focus on the timely and accurate count of 
mortality and accounting of causes and how this information can 
facilitate future disaster preparedness efforts. The report 
must be started within 90 days of enactment and completed 
within 2 years.

Section 44. Review of assistance for damaged underground water 
        infrastructure

    This section defines the term ``public assistance grant 
program'' based on sections from the bill. Within 60 days of 
enactment, FEMA is required to conduct a review of grants 
provided for damaged underground water infrastructure. FEMA 
must provide a report on this review within 180 days of 
enactment and implement any recommendations made in the report 
within 180 days of its release.

                   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. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 2018.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3041, the Disaster 
Recovery Reform Act of 2018.
    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,
                                                          Director.
    Enclosure.

S. 3041--Disaster Recovery Reform Act of 2018

    Summary: S. 3041 would amend and authorize appropriations 
for several programs administered by the Federal Emergency 
Management Agency (FEMA). CBO estimates that implementing the 
bill would cost $2.4 billion over the 2019-2023 period, 
assuming appropriation of the authorized and necessary amounts.
    CBO estimates that enacting S. 3041 would increase direct 
spending by $45 million over the 2019-2028 period and would 
decrease revenues by an insignificant amount in each year. 
Therefore, pay-as-you-go procedures apply.
    CBO estimates that enacting S. 3041 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 3041 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of S. 3041 is shown in the following table. 
The costs of the legislation fall within budget function 450 
(community and regional development).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2018    2019    2020    2021    2022    2023    2024    2025    2026    2027    2028   2019-2023  2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Emergency Management Grants:
    Authorization Level...................       0     954     954     954     954       0       0       0       0       0       0     3,816      3,816
    Estimated Outlays.....................       0      70     213     403     622     742     741     551     333     143       0     2,049      3,816
Predisaster Mitigation Fund:
    Estimated Authorization Level.........       0     120      24      24      24      24      24      24      24      24      24       216        336
    Estimated Outlays.....................       0       6      25      54      40      32      29      24      24      24      24       157        282
In-Lieu Public Assistance Contributions:
    Estimated Authorization Level.........       0      21      21      21      21      21      21      21      21      21      21       105        210
    Estimated Outlays.....................       0      21      21      21      21      21      21      21      21      21      21       105        210
Assistance for Properties without Flood
 Insurance:
    Estimated Authorization Level.........       0      12      12      12      12      12      12      12      12      12      12        60        120
    Estimated Outlays.....................       0       7      11      12      12      12      12      12      12      12      12        54        114
Forgone Recoveries of Improper Payment:
    Estimated Authorization Level.........       0       8       6       6       4       3       0       0       0       0       0        27         27
    Estimated Outlays.....................       0       5       6       6       5       4       1       0       0       0       0        26         27
Wildfire Mitigation:
    Estimated Authorization Level.........       0       6       6       6       6       6       6       6       6       6       6        24         54
    Estimated Outlays.....................       0       *       2       3       5       6       6       6       6       6       6        16         46
Disaster Assistance Arbitration:
    Estimated Authorization Level.........       0       1       1       1       1       1       1       1       1       1       1         5         10
    Estimated Outlays.....................       0       *       1       1       1       1       1       1       1       1       1         4          9
Additional Reporting Requirements:
    Estimated Authorization Level.........       0       2       *       *       *       *       *       *       *       *       *         2          3
    Estimated Outlays.....................       0       2       *       *       *       *       *       *       *       *       *         2          3
    Total Increases:
        Estimated Authorization Level.....       0   1,124   1,024   1,024   1,022      67      64      64      64      64      64     4,261      4,582
        Estimated Outlays.................       9     111     279     500     705     818     811     615     397     207      64     2,413      4,507
 
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Disaster Unemployment Assistance
 Extension:
    Estimated Budget Authority............       0       0       0       0       0       0       0       0       0       0       0         0          0
    Estimated Outlays.....................       0      30       0       0       0       0       0       0       0       0       0        30         30
Assistance for Properties without Flood
 Insurance:
    Estimated Budget Authority............       0       0       0       0       0       0       0       0       0       0       0         0          0
    Estimated Outlays.....................       0      10       4       1       0       0       0       0       0       0       0        15         15
Foregone Recoveries of Improper Payment:
    Estimated Budget Authority............       0       0       0       0       0       0       0       0       0       0       0         0          0
    Estimated Outlays.....................       0       3       0       0      -1      -1      -1       0       0       0       0         1          0
    Total Change:
        Estimated Budget Authority........       0       0       0       0       0       0       0       0       0       0       0         0          0
        Estimated Outlays.................       0      43       4       1      -1      -1      -1       0       0       0       0        46         45
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = less than $500,000.

    Basis of estimate: CBO assumes that S. 3041 will be enacted 
during fiscal year 2018 and that the authorized and necessary 
amounts will be appropriated for each year beginning in 2019. 
Estimated outlays are based on historical spending patterns.

Spending subject to appropriation

    CBO estimates that implementing S. 3041 would cost $2.4 
billion over the 2019-2023 period.
    Emergency Management Grants. S. 3041 would authorize the 
appropriation of $950 million annually through 2022 for FEMA to 
provide grants to states through the Emergency Management 
Performance Grant program. That program helps state, local, and 
tribal governments prepare for future disasters. In 2018, FEMA 
allocated $350 million for such grants. S. 3041 also would 
authorize the appropriation of $4 million annually through 2022 
for FEMA to provide grants to the Emergency Management 
Assistance Compact. The compact provides assistance when a 
governor declares a disaster through a system that allows 
member states to send personnel, equipment, and commodities to 
help with response and recovery efforts in other member states. 
In 2018, FEMA provided $2 million in such grants.
    CBO estimates that providing those grants would cost about 
$2.0 billion over the 2019-2023 period and an additional $1.8 
billion after 2023.
    Predisaster Mitigation Fund. S. 3041 would create the 
National Public Infrastructure Predisaster Mitigation Fund. For 
each major disaster declared after August 1, 2017, an amount 
equal to 6 percent of the total estimated funding FEMA expects 
to provide for certain disaster response grants would be 
transferred into the proposed fund from unobligated 
appropriated balances in the Disaster Relief Fund (DRF). The 
new fund would be used to provide technical and financial 
assistance to states and localities for hazard mitigation 
designed to reduce injury, loss of life, and damage and 
destruction of property.
    After enactment, CBO estimates, about $120 million--6 
percent of the estimated $2 billion in relevant disaster 
response grants expected to be made for disasters declared 
since August 1, 2017--would be transferred to the proposed fund 
in 2019. In recent years, FEMA has been provided an average of 
$400 million a year for the relevant disaster response grants. 
Assuming that the Congress provides similar amounts in 
subsequent years, CBO estimates that $24 million (6 percent of 
$400 million) would be transferred to the fund each year.
    Because the provision does not change any underlying 
authority to provide disaster relief, in CBOs view the 
legislation implicitly authorizes the appropriation of amounts 
equal to the amounts that would be transferred from the DRF to 
the new fund. Thus, CBO estimates that spending under this 
section would total $157 million over the 2019-2023 period.
    In-Lieu Public Assistance Contributions. Under current law, 
public or private nonprofit entities that own facilities that 
are substantially damaged during a major disaster have the 
option of receiving grants to repair the facility or a 
percentage of the grant amount as an in-lieu contribution for 
use on other restoration projects. The total in-lieu 
contribution is 90 percent of repair costs for public 
facilities and 75 percent for private nonprofit facilities.
    S. 3041 would increase the maximum in-lieu contributions 
for both public and private nonprofit entities to 100 percent 
of the total grant amount. Using historical data provided by 
FEMA on such in-lieu awards, CBO estimates that implementing 
this section would cost $105 million over the 2019-2023 period.
    Assistance for Properties without Flood Insurance. Under 
current law, a public or private nonprofit facility located 
within an area designated as having at least a 1 percent chance 
of being flooded in any year and that is not covered by flood 
insurance (either through FEMAs National Flood Insurance 
Program or through a private company) will see its assistance 
reduced in the event of flooding in a major disaster. In those 
cases, the assistance for each building of a multi-structure 
complex is reduced by the amount of insurance proceeds that 
FEMA estimates the public or nonprofit entity could have 
received if it were insured. Under S. 3041, that reduction in 
assistance would not be applied to more than one building of a 
multi-structure educational, law enforcement, correctional, 
fire, or medical campus.
    Using historical data provided by FEMA, CBO estimates that 
implementing this section would cost $54 million over the 2019-
2023 period. The bill also would make that change retroactive 
to all flooding disasters since January 2016, which would 
increase direct spending as discussed below under the heading 
Direct Spending.
    Forgone Recoveries of Improper Payments. CBO estimates that 
prohibiting FEMA from recouping certain improper payments would 
reduce direct spending by $27 million over the next 10 years. 
(See the discussion under the heading Direct Spending.) Under 
current law, recouped amounts are deposited in the DRF and 
subsequently spent on recovery costs for future disasters. 
Because the provision does not change any underlying authority 
to provide disaster relief, in CBOs view the bill implicitly 
authorizes the appropriation of amounts equal to the forgone 
funds. Thus, CBO estimates that implementing the provision 
would cost $26 million over the 2019-2023 period.
    Wildfire Mitigation. S. 3041 would authorize assistance for 
hazard mitigation in areas affected by wildfires. Under current 
law, FEMA may provide hazard mitigation funds to areas where 
the President has declared a major disaster. Under the bill, 
FEMA would be authorized to provide funds to areas affected by 
wildfires, regardless of whether the President has declared a 
major disaster. Using information provided by FEMA, CBO 
estimates that providing additional assistance would require 
annual appropriations of $6 million and would cost $16 million 
over the 2019-2023 period.
    Disaster Assistance Arbitration. The bill would authorize 
the Civilian Board of Contract Appeals to arbitrate a 
determination of disaster assistance made by FEMA if an 
applicant for disaster assistance requests such arbitration. 
Using information from FEMA on the expected number of 
arbitration requests, CBO estimates that implementing this 
provision would cost $4 million over the 2019-2023 period.
    Additional Reporting Requirements. S. 3041 would require 
FEMA to issue six new regulations, eight new guidance 
documents, and 26 new reports to the Congress over the next 
five years. Based on the costs of preparing similar reports and 
regulations, CBO estimates that meeting those requirements 
would cost $2 million over the 2019-2023 period.

Direct Spending

    CBO estimates that enacting S. 3041 would increase direct 
spending by $45 million over the 2019-2028 period.
    Disaster Unemployment Assistance Extension. S. 3041 would 
direct FEMA to extend the period that people in Puerto Rico and 
the U.S. Virgin Islands who were affected by Hurricanes Irma 
and Maria can receive Disaster Unemployment Assistance (DUA). 
Under current law, DUA can be provided for up to 26 weeks from 
the date of the disaster declaration. Under the bill, that 
period would be extended to 52 weeks from the declaration date 
and would allow DUA to be provided retroactively to people who 
would have been eligible for such assistance beyond the 26-week 
period allowed under current law. Using information from FEMA 
and the Department of Labor on the number of people who would 
have been eligible for such assistance and the expected length 
of time they could have received that assistance, CBO estimates 
that enacting this provision would increase spending of 
previously appropriated DRF funds by $30 million in 2019. 
(Under current law, CBO estimates that those amounts would 
otherwise outlay after 2028.)
    Assistance for Properties without Flood Insurance. As 
described above under the heading Spending Subject to 
Appropriation, the bill would increase the amount of assistance 
that certain public or private nonprofit entities can receive 
if they suffer flood losses at multi-structure facilities that 
are not covered by flood insurance. That provision would be 
retroactive for flood losses that have occurred since January 
2016.
    Using data provided by FEMA on the amount of assistance 
that was reduced for the relevant types of structures between 
2016 and 2018, CBO estimates that enacting this section would 
increase spending of previously appropriated DRF funds by $15 
million over the 2019-2028 period. (Under current law, CBO 
estimates that those amounts would otherwise outlay after 
2028.)
    Forgone Recoveries of Improper Payments. Under current law, 
FEMA must recoup any improper payments made for disaster 
assistance. Improper payments can result from, among other 
things, duplication of benefits (for example, receipt of two 
insurance payments for the same damage), processing errors, or 
fraud. All payments received through the recovery process are 
deposited in the DRF and may be spent on future disasters 
without further appropriation. Under S. 3041, improper payments 
made to individuals would have to be recouped within three 
years of their disbursement. That limitation would not apply 
where there is evidence of fraud.
    The Government Accountability Office reported that about 3 
percent of the approximately $1.6 billion spent by FEMA for 
individual assistance between 2012 and 2014 for Hurricane Sandy 
relief were improper or fraudulent. Based on a review of that 
report, CBO estimates that few of those payments (less than 5 
percent) were the result of fraud. Using information from FEMA 
about the recoupment rate for improper payments after previous 
major disasters, CBO expects that about 35 percent of those 
payments have been recovered. Thus, CBO estimates that about 
$27 million in improper payments for individual assistance that 
are in the process of being recouped would no longer be 
collected under S. 3041. However, because those amounts would 
have been available to FEMA for future disaster relief payments 
without further appropriation, fewer collections also would 
reduce outlays, resulting in no net effect on direct spending 
over the 2019-2028 period. However, because spending lags 
recoupments, there would be a $1 million cost over the 2019-
2023 period.
    The bill also would allow FEMA to waive the recovery of 
improper individual assistance payments on a case-by-case 
basis, so long as the improper payment was not made as a result 
of fraud. As of July 2018, FEMA has not identified a 
significant amount of improper payments for individual 
assistance that were made within the last three years. 
(Improper payments made more than three years ago would be 
covered by the limitation discussed above.) Furthermore, CBO 
has no basis to estimate the timing or magnitude of waivers 
that would be made under S. 3041 for recovery of improper 
payments that have not yet been disbursed. Thus, CBO does not 
estimate any additional forgone recoupments associated with the 
waiver authority that would be provided under the bill.

Revenues

    S. 3041 would authorize the Department of State to waive 
certain fees associated with applications for the replacement 
of passports if the person applying for such a document lost 
their original passport in a major disaster. Portions of the 
passport replacement application fee are remitted to the 
Treasury and recorded in the budget as revenues. Using 
information from FEMA on the number of individuals that would 
qualify for such waivers, CBO estimates that any loss of 
revenues from those waivers would not be significant in any 
year.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table. (The 
revenue effects are not significant and are not shown in the 
table.)

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 3041, THE DISASTER RECOVERY REFORM ACT OF 2018, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON HOMELAND
                                                   SECURITY AND GOVERNMENTAL AFFAIRS ON JUNE 13, 2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2018   2019   2020   2021   2022   2023   2024   2025   2026   2027   2028  2018-2023  2018-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      0     43      4      1     -1     -1     -1      0      0      0      0        46         45
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting S. 3041 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: S. 3041 contains no intergovernmental or private-
sector mandates as defined in UMRA.
    Previous CBO estimate: On March 8, 2018, CBO transmitted an 
estimate for H.R. 4460, the Disaster Recovery Reform Act, as 
ordered reported by the House Committee on Transportation and 
Infrastructure on November 30, 2017. Several of the provisions 
in S. 3041 are similar to those in H.R. 4460. Differences in 
CBO's estimates of the two pieces of legislation stem from 
differences in the text of the legislation and new information 
that CBO has obtained since we transmitted the estimate for 
H.R. 4460.
    Estimate prepared by: Federal costs: Robert Reese; Federal 
revenues: Sunita D'Monte; Mandates: Rachel Austin.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

       VII. 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 I--FINDINGS, DECLARATIONS, AND DEFINITIONS

           *       *       *       *       *       *       *


SEC. 102. DEFINITIONS.

    As used in this Act--
          (1) * * *

           *       *       *       *       *       *       *

          (11) Private nonprofit facility.--
                  (A) * * *
                  (B) Additional facilities.--In addition to 
                the facilities described in subparagraph (A), 
                the term ``private nonprofit facility'' 
                includes any private nonprofit facility that 
                provides essential social services to the 
                general public (including museums, zoos, 
                performing arts facilities, community arts 
                centers, community centers, libraries, homeless 
                shelters, senior citizen centers, 
                rehabilitation facilities, shelter workshops, 
                food banks, broadcasting facilities, houses of 
                worship, and facilities that provide health and 
                safety services of a governmental nature), as 
                defined by the President. No house of worship 
                may be excluded from this definition because 
                leadership or membership in the organization 
                operating the house of worship is limited to 
                persons who share a religious faith or 
                practice.

           *       *       *       *       *       *       *


TITLE II--DISASTER PREPAREDNESS AND MITIGATION ASSISTANCE

           *       *       *       *       *       *       *


SEC. 203. PREDISASTER HAZARD MITIGATION.

    (a) * * *
    (b) * * *
    (c) Approval by President.--If the President determines 
that a State or local government has identified natural 
disaster hazards in areas under its jurisdiction and has 
demonstrated the ability to form effective public-private 
natural disaster hazard mitigation partnerships, the President, 
using amounts in the National Public Infrastructure Predisaster 
Mitigation Fund established under subsection (i) of this 
section (referred to in this section as the ``Fund''), may 
provide technical and financial assistance to the State or 
local government to be used in accordance with subsection (e) 
of this section.

           *       *       *       *       *       *       *

    (e) Uses of Technical and Financial Assistance.--
          (1) In general.--Technical and financial assistance 
        provided under this section--
                  (A) * * *
                  (B) may be used--
                          (i) to support effective public-
                        private natural disaster hazard 
                        mitigation partnerships;
                          (ii) to improve the assessment of a 
                        community's vulnerability to natural 
                        hazards; [or]
                          (iii) to establish hazard mitigation 
                        priorities, and an appropriate hazard 
                        mitigation plan, for a community[.]; or
                          (iv) to establish, adopt, and carry 
                        out enforcement activities to implement 
                        the latest published editions of 
                        relevant consensus-based codes, 
                        specifications, and standards that 
                        incorporate the latest hazard-resistant 
                        designs and establish minimum 
                        acceptable criteria for the design, 
                        construction, and maintenance of 
                        residential structures and facilities 
                        that may be eligible for assistance 
                        under this Act for the purpose of 
                        protecting the health, safety, and 
                        general welfare of the buildings' users 
                        against disasters.
          (2) * * *
    (f) Allocation of Funds.--
          (1) In general.-- The President shall award financial 
        assistance under this section on a competitive basis 
        for mitigation activities that are cost effective and 
        in accordance with the criteria in subsection (g).

           *       *       *       *       *       *       *

          (3) Redistribution of unobligated amounts.--The 
        President may--
                  (A) withdraw amounts of financial assistance 
                made available to a State (including amounts 
                made available to local governments of a State) 
                under this subsection that remain unobligated 
                by the end of the third fiscal year after the 
                fiscal year for which the amounts were 
                allocated; and
                  (B) in the fiscal year following a fiscal 
                year in which amounts were withdrawn under 
                subparagraph (A), add the amounts to any other 
                amounts available to be awarded on a 
                competitive basis pursuant to paragraph (1).
    (g) Criteria for Assistance Awards.--In determining whether 
to provide technical and financial assistance to a State or 
local government under this section, the President shall take 
into account--
          (1) * * *

           *       *       *       *       *       *       *

          (9) the extent to which assistance will fund 
        mitigation activities in small impoverished 
        communities; [and]
          (10) the extent to which the State or local 
        government has facilitated the adoption and enforcement 
        of the latest published editions of relevant consensus-
        based codes, specifications, and standards that 
        incorporate the latest hazard-resistant designs and 
        establish criteria for the design, construction, and 
        maintenance of residential structures and facilities 
        that may be eligible for assistance under this Act for 
        the purpose of protecting the health, safety, and 
        general welfare of the buildings' users against 
        disasters;
          (11) the extent to which the assistance will fund 
        activities that increase the level of resiliency; and
          [(10)] (12) such other criteria as the President 
        establishes in consultation with State and local 
        governments.

           *       *       *       *       *       *       *

    [(i) National Predisaster Mitigation Fund.--
          [(1) Establishment.--The President may establish in 
        the Treasury of the United States a fund to be known as 
        the ``National Predisaster Mitigation Fund'', to be 
        used in carrying out this section.
          [(2) Transfers to fund.--There shall be deposited in 
        the Fund--
                  [(A) amounts appropriated to carry out this 
                section, which shall remain available until 
                expended; and
                  [(B) sums available from gifts, bequests, or 
                donations of services or property received by 
                the President for the purpose of predisaster 
                hazard mitigation.
          [(3) Expenditures from fund.--Upon request by the 
        President, the Secretary of the Treasury shall transfer 
        from the Fund to the President such amounts as the 
        President determines are necessary to provide technical 
        and financial assistance under this section.
          [(4) Investment of amounts.--
                  [(A) In general.--The Secretary of the 
                Treasury shall invest such portion of the Fund 
                as is not, in the judgment of the Secretary of 
                the Treasury, required to meet current 
                withdrawals. Investments may be made only in 
                interest-bearing obligations of the United 
                States.
                  [(B) Acquisition of obligations.--For the 
                purpose of investments under subparagraph (A), 
                obligations may be acquired--
                          [(i) on original issue at the issue 
                        price; or
                          [(ii) by purchase of outstanding 
                        obligations at the market price.
                  [(C) Sale of obligations.--Any obligation 
                acquired by the Fund may be sold by the 
                Secretary of the Treasury at the market price.
                  [(D) Credits to fund.--The interest on, and 
                the proceeds from the sale or redemption of, 
                any obligations held in the Fund shall be 
                credited to and form a part of the Fund.
                  [(E) Transfers of amounts.--
                          [(i) In general.--The amounts 
                        required to be transferred to the Fund 
                        under this subsection shall be 
                        transferred at least monthly from the 
                        general fund of the Treasury to the 
                        Fund on the basis of estimates made by 
                        the Secretary of the Treasury.
                          [(ii) Adjustments.--Proper adjustment 
                        shall be made in amounts subsequently 
                        transferred to the extent prior 
                        estimates were in excess of or less 
                        than the amounts required to be 
                        transferred.]
    (i) National Public Infrastructure Predisaster Mitigation 
Assistance.--
          (1) In general.--The President may set aside from the 
        Disaster Relief Fund, with respect to each major 
        disaster, an amount equal to 6 percent of the estimated 
        aggregate amount of the grants to be made pursuant to 
        sections 403, 406, 407, 408, 410, 416, and 428 for the 
        major disaster in order to provide technical and 
        financial assistance under this section.
          (2) Estimated aggregate amount.--Not later than 180 
        days after each major disaster declaration pursuant to 
        this Act, the estimated aggregate amount of grants for 
        purposes of paragraph (1) shall be determined by the 
        President and such estimated amount need not be 
        reduced, increased, or changed due to variations in 
        estimates.
          (3) No reduction in amounts.--The amount set aside 
        pursuant to paragraph (1) shall not reduce the amounts 
        otherwise made available for sections 403, 404, 406, 
        407, 408, 410, 416, and 428 under this Act.
    [(j) Limitation on Total Amount of Financial Assistance.--
The President shall not provide financial assistance under this 
section in an amount greater than the amount available in the 
Fund.]
    [(k)] (j) Multihazard Advisory Maps.--

           *       *       *       *       *       *       *

    [(l)] (k) Report on Federal and State Administration.--* * 
*
    [(m) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
          [(1) $180,000,000 for fiscal year 2011;
          [(2) $200,000,000 for fiscal year 2012;
          [(3) $200,000,000 for fiscal year 2013.]
    [(n)] (l) Prohibition on Earmarks.--

           *       *       *       *       *       *       *


TITLE III--MAJOR DISASTER AND EMERGENCY ASSISTANCE ADMINISTRATION

           *       *       *       *       *       *       *


SEC. 306. PERFORMANCE OF SERVICES.

    (a) * * *

           *       *       *       *       *       *       *

    (c) The Administrator of the Federal Emergency Management 
Agency is authorized to appoint temporary personnel, after 
serving continuously for 3 years, to positions in the Federal 
Emergency Management Agency in the same manner that competitive 
service employees with competitive status are considered for 
transfer, reassignment, or promotion to such positions. An 
individual appointed under this subsection shall become a 
career-conditional employee, unless the employee has already 
completed the service requirements for career tenure.

           *       *       *       *       *       *       *


SEC. 309. USE AND COORDINATION OF RELIEF ORGANIZATIONS.

    (a) In providing relief and assistance under this Act, the 
President may utilize, with their consent, the personnel and 
facilities of the American National Red Cross, the Salvation 
Army, the Mennonite Disaster Service, and [other relief or] 
long-term recovery groups, domestic hunger relief, and other 
relief, or disaster assistance organizations, in the 
distribution of medicine, food, supplies, or other items, and 
in the restoration, rehabilitation, or reconstruction of 
community services housing and essential facilities, whenever 
the President finds that such utilization is necessary.
    (b) The President is authorized to enter into agreements 
with the American National Red Cross, the Salvation Army, the 
Mennonite Disaster Service, and [other relief or] long-term 
recovery groups, domestic hunger relief, and other relief, or 
disaster assistance organizations under which the disaster 
relief activities of such organizations may be coordinated by 
the Federal coordinating officer whenever such organizations 
are engaged in providing relief during and after a major 
disaster or emergency. Any such agreement shall include 
provisions assuring that use of Federal facilities, supplies, 
and services will be in compliance with regulations prohibiting 
duplication of benefits and guaranteeing nondiscrimination 
promulgated by the President under this Act, and such other 
regulation as the President may require.

           *       *       *       *       *       *       *


SEC. 311. INSURANCE.

           *       *       *       *       *       *       *


    (d) Report on Insurance Shortfalls.--Not later than 2 years 
after the date of enactment of this subsection, and each year 
thereafter, the Administrator of the Federal Emergency 
Management Agency shall submit a report to Congress on the 
number of instances and the estimated amounts involved, by 
State, for cases in which self-insurance amounts have been 
insufficient to address flood damages.

           *       *       *       *       *       *       *


SEC. 312. DUPLICATION OF BENEFITS.

    (a) * * *
    (b) Special Rules.--
          (1) * * *
          (2) * * *
          (3) * * *
          (4) Waiver of general prohibition.--
                  (A) In general.--The President may waive the 
                general prohibition provided in subsection (a) 
                upon request of a Governor on behalf of the 
                State or on behalf of a person, business 
                concern, or any other entity suffering losses 
                as a result of a major disaster or emergency, 
                if the President finds such waiver is in the 
                public interest and will not result in waste, 
                fraud, or abuse. In making this decision, the 
                President may consider the following:
                          (i) The recommendations of the 
                        Administrator of the Federal Emergency 
                        Management Agency made in consultation 
                        with the Federal agency or agencies 
                        administering the duplicative program.
                          (ii) If a waiver is granted, the 
                        assistance to be funded is cost 
                        effective.
                          (iii) Equity and good conscience.
                          (iv) Other matters of public policy 
                        considered appropriate by the 
                        President.
                  (B) Grant or denial of waiver.--A request 
                under subparagraph (A) shall be granted or 
                denied not later than 45 days after submission 
                of such request.

           *       *       *       *       *       *       *


SEC. 322. MITIGATION PLANNING.

           *       *       *       *       *       *       *


    (e) Increased Federal Share for Hazard Mitigation 
Measures.--
          (1) In general.--If, at the time of the declaration 
        of a major disaster or event under section 420, a State 
        has in effect an approved mitigation plan under this 
        section, the President may increase to 20 percent, with 
        respect to the major disaster or event under section 
        420, the maximum percentage specified in the last 
        sentence of section 404(a).

           *       *       *       *       *       *       *


SEC. 324. MANAGEMENT COSTS.

    (a) Definition of Management Cost.--In this section, the 
term ``management cost'' includes any indirect cost, [any 
administrative expense, and any other expense not directly 
chargeable to] 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.--
[Notwithstanding]
          (1) In general.--Notwithstanding any other provision 
        of law (including any administrative rule or guidance), 
        the President shall by regulation [establish] 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 
        Federal Emergency Management Agency shall provide the 
        following percentage rates, in addition to the eligible 
        project costs, to cover direct and indirect costs of 
        administering the following programs:
                  (A) 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) 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.

           *       *       *       *       *       *       *


TITLE IV--MAJOR DISASTER ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *


SEC. 402. GENERAL FEDERAL ASSISTANCE.

    In any major disaster, the President may--
          (1) * * *
          (2) * * *
          (3) * * *
          (4) assist State and local governments in the 
        distribution of medicine, food, and other consumable 
        supplies, and emergency assistance; [and]
          (5) provide assistance to State and local governments 
        for building code and floodplain management ordinance 
        administration and enforcement, including inspections 
        for substantial damage compliance; and
          [(5)] (6) provide accelerated Federal assistance and 
        Federal support where necessary to save lives, prevent 
        human suffering, or mitigate severe damage, which may 
        be provided in the absence of a specific request and in 
        which case the President--
                  (A) * * *
                  (B) * * *

SEC. 404. HAZARD MITIGATION.

    (a) In General.--[The President may contribute up to 75 
percent of the cost of hazard mitigation measures which the 
President has determined are cost-effective and which 
substantially reduce the risk of future damage, hardship, loss, 
or suffering in any area affected by a major disaster.] The 
President may contribute up to 75 percent of the cost of hazard 
mitigation measures which the President has determined are 
cost-effective and which substantially reduce the risk of, or 
increase resilience to, future damage, hardship, loss, or 
suffering in any area affected by a major disaster, or any area 
affected by a fire for which assistance was provided under 
section 420. Such measures shall be identified following the 
evaluation of natural hazards under section 322 and shall be 
subject to approval by the President. Subject to section 322, 
the total of contributions under this section for a major 
disaster or event under section 420 shall not exceed 15 percent 
for amounts not more than $2,000,000,000, 10 percent for 
amounts of more than $2,000,000,000 and not more than 
$10,000,000,000, and 7.5 percent on amounts of more than 
$10,000,000,000 and not more than $35,333,000,000 of the 
estimated aggregate amount of grants to be made (less any 
associated administrative costs) under this Act with respect to 
the major disaster or event under section 420.

           *       *       *       *       *       *       *

    (f) Use of Assistance.--Recipients of hazard mitigation 
assistance provided under this section and section 203 may use 
the assistance to conduct activities to help reduce the risk of 
future damage, hardship, loss, or suffering in any area 
affected by a wildfire or windstorm, such as--
          (1) reseeding ground cover with quick-growing or 
        native species;
          (2) mulching with straw or chipped wood;
          (3) constructing straw, rock, or log dams in small 
        tributaries to prevent flooding;
          (4) placing logs and other erosion barriers to catch 
        sediment on hill slopes;
          (5) installing debris traps to modify road and trail 
        drainage mechanisms;
          (6) modifying or removing culverts to allow drainage 
        to flow freely;
          (7) adding drainage dips and constructing emergency 
        spillways to keep roads and bridges from washing out 
        during floods;
          (8) planting grass to prevent the spread of noxious 
        weeds;
          (9) installing warning signs;
          (10) establishing defensible space measures;
          (11) reducing hazardous fuels;
          (12) mitigating windstorm damage, including replacing 
        or installing electrical transmission or distribution 
        utility pole structures with poles that are resilient 
        to extreme wind and combined ice and wind loadings for 
        the basic wind speeds and ice conditions associated 
        with the relevant location;
          (13) removing standing burned trees; and
          (14) replacing water systems that have been burned 
        and have caused contamination.
    (g) Use of Assistance.--Recipients of hazard mitigation 
assistance provided under this section and section 203 may use 
the assistance to conduct activities to help reduce the risk of 
future damage, hardship, loss, or suffering in any area 
affected by earthquake hazards, including--
          (1) improvements to regional seismic networks in 
        support of building a capability for earthquake early 
        warning;
          (2) improvements to geodetic networks in support of 
        building a capability for earthquake early warning; and
          (3) improvements to seismometers, Global Positioning 
        System receivers, and associated infrastructure in 
        support of building a capability for earthquake early 
        warning.

           *       *       *       *       *       *       *


SEC. 406. REPAIR, RESTORATION, AND REPLACEMENT OF DAMAGED FACILITIES.

    (a) Contributions.--
          (1) * * *
          (2) Associated expenses.--For the purposes of this 
        section, associated expenses shall include--
                  (A) * * *
                  (B) the costs of using prison labor to 
                perform eligible work, including wages actually 
                paid, transportation to a worksite, and 
                extraordinary costs of guards, food, and 
                lodging; [and]
                  (C) base and overtime wages for the employees 
                and extra hires of a State, local government, 
                or person described in paragraph (1) that 
                perform eligible work, plus fringe benefits on 
                such wages to the extent that such benefits 
                were being paid before the major disaster[.]; 
                and
                  (D) base and overtime wages for extra hires 
                to facilitate the implementation and 
                enforcement of adopted building codes for a 
                period of not more than 180 days after the 
                major disaster is declared.
          (3) Conditions for assistance to private nonprofit 
        facilities.--

           *       *       *       *       *       *       *

                  (B) Definition of critical services.--In this 
                paragraph, the term ``critical services'' 
                includes power, water (including water provided 
                by an irrigation organization or facility), 
                sewer, wastewater treatment, communications, 
                education (including private nonprofit center-
                based childcare), and emergency medical care.

           *       *       *       *       *       *       *

    (c) Large In-Lieu Contributions.--
          (1) For public facilities.--
                  (A) In general.--In any case in which a State 
                or local government determines that the public 
                welfare would not best be served by repairing, 
                restoring, reconstructing, or replacing any 
                public facility owned or controlled by the 
                State or local government, the State or local 
                government may elect to receive, in lieu of a 
                contribution under subsection (a)(1)(A), a 
                contribution in an amount equal to [90 percent 
                of] the Federal share of the Federal estimate 
                of the cost of repairing, restoring, 
                reconstructing, or replacing the facility and 
                of management expenses.

           *       *       *       *       *       *       *

          (2) For private nonprofit facilities.--
                  (A) In general.--In any case in which a 
                person that owns or operates a private 
                nonprofit facility determines that the public 
                welfare would not best be served by repairing, 
                restoring, reconstructing, or replacing the 
                facility, the person may elect to receive, in 
                lieu of a contribution under subsection 
                (a)(1)(B), a contribution in an amount equal to 
                [75 percent of] the Federal share of the 
                Federal estimate of the cost of repairing, 
                restoring, reconstructing, or replacing the 
                facility and of management expenses.

           *       *       *       *       *       *       *

    (d) Flood Insurance.--
          (1) Reduction of federal assistance.--If a public 
        facility or private nonprofit facility located in a 
        special flood hazard area identified for more than 1 
        year by the Administrator pursuant to the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 
        damaged or destroyed, after the 180th day following 
        November 23, 1988, by flooding in a major disaster and 
        such facility is not covered on the date of such 
        flooding by flood insurance, the Federal assistance 
        which would otherwise be available under this section 
        with respect to repair, restoration, reconstruction, 
        and replacement of such facility and associated 
        expenses shall be reduced in accordance with paragraph 
        (2). This section shall not apply to more than 1 
        building of a multi-structure educational, law 
        enforcement, correctional, fire, or medical campus, 
        effective January 1, 2016.

           *       *       *       *       *       *       *

    (e) Eligible Cost.--
          (1) Determination.--
                  (A) In general.--For the purposes of this 
                section, for disasters declared on or after 
                August 1, 2017, or a disaster in which a cost 
                estimate has not yet been finalized for a 
                project, the President shall estimate the 
                eligible cost of repairing, restoring, 
                reconstructing, or replacing a public facility 
                or private nonprofit facility--
                          (i) on the basis of the design of the 
                        facility as the facility existed 
                        immediately before the major disaster; 
                        [and]
                          (ii) in conformity with [codes, 
                        specifications, and standards] the 
                        latest published editions of relevant 
                        consensus-based codes, specifications, 
                        and standards that incorporate the 
                        latest hazard-resistant designs and 
                        establish minimum acceptable criteria 
                        for the design, construction, and 
                        maintenance of residential structures 
                        and facilities that may be eligible for 
                        assistance under this Act for the 
                        purposes of protecting the health, 
                        safety, and general welfare of a 
                        facility's users against disasters 
                        (including floodplain management and 
                        hazard mitigation criteria required by 
                        the President or under the Coastal 
                        Barrier Resources Act (16 U.S.C. 3501 
                        et seq.)) [applicable at the time at 
                        which the disaster occurred.]; and
                          (iii) in a manner that allows the 
                        facility to meet the definition of 
                        resilient developed pursuant to this 
                        subsection.

           *       *       *       *       *       *       *

                  (C) Contributions.--Contributions for the 
                eligible cost made under this section may be 
                provided on an actual cost basis or on cost-
                estimation procedures.

           *       *       *       *       *       *       *

          (5) New rules.--
                  (A) In general.--Not later than 18 months 
                after the date of enactment of this paragraph, 
                the President, acting through the Administrator 
                of the Federal Emergency Management Agency, and 
                in consultation with the heads of relevant 
                Federal departments and agencies, shall issue a 
                final rulemaking that defines the terms 
                `resilient' and `resiliency' for purposes of 
                this subsection.
                  (B) Interim guidance.--Not later than 60 days 
                after the date of enactment of this paragraph, 
                the Administrator shall issue interim guidance 
                to implement this subsection. Such interim 
                guidance shall expire 18 months after the date 
                of enactment of this paragraph or upon issuance 
                of final regulations pursuant to subparagraph 
                (A), whichever occurs first.
                  (C) Guidance.--Not later than 90 days after 
                the date on which the Administrator issues the 
                final rulemaking under this paragraph, the 
                Administrator shall issue any necessary 
                guidance related to the rulemaking.
                  (D) Report.--Not later than 2 years after the 
                date of enactment of this paragraph, the 
                Administrator shall submit to Congress a report 
                summarizing the regulations and guidance issued 
                pursuant to this paragraph.

           *       *       *       *       *       *       *


SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.

           *       *       *       *       *       *       *


    (c) Types of Housing Assistance.--
          (1) Temporary housing.--
                  (A) * * *
                          (i) * * *
                          (ii) * * *
                  (B) Direct assistance.--
                          (i) * * *
                          (ii) Lease and repair of rental units 
                        for temporary housing.--
                                  (I) In general.--The 
                                President, to the extent the 
                                President determines it would 
                                be a cost-effective alternative 
                                to other temporary housing 
                                options, may--
                                          [(aa) enter into 
                                        lease agreements with 
                                        owners of multifamily 
                                        rental property located 
                                        in areas covered by a 
                                        major disaster 
                                        declaration to house 
                                        individuals and 
                                        households eligible for 
                                        assistance under this 
                                        section; and]
                                          (aa) enter into lease 
                                        agreements with owners 
                                        of multifamily rental 
                                        property impacted by a 
                                        major disaster or 
                                        located in areas 
                                        covered by a major 
                                        disaster declaration to 
                                        house individuals and 
                                        households eligible for 
                                        assistance under this 
                                        section; and
                                          (bb) * * *
                                  [(II) Improvements or 
                                repairs.--Under the terms of 
                                any lease agreement for 
                                property entered into under 
                                this subsection, the value of 
                                the improvements or repairs.--
                                          [(aa) shall be 
                                        deducted from the value 
                                        of the lease agreement; 
                                        and
                                          [(bb) may not exceed 
                                        the value of the lease 
                                        agreement.]
                                  (II) Improvements or 
                                repairs.--Under the terms of 
                                any lease agreement for 
                                property entered into under 
                                this subsection, the value of 
                                the improvements or repairs 
                                shall be deducted from the 
                                value of the lease agreement.

           *       *       *       *       *       *       *

    (e) Financial Assistance To Address Other Needs.--
          (1) * * *
          (2) * * *
          (3) Critical document fee waiver.--
                  (A) In general.--Notwithstanding section 1 of 
                the Passport Act of June 4, 1920 (22 U.S.C. 
                214) or any other provision of law, the 
                President, in consultation with the Governor of 
                a State, may provide a waiver under this 
                section to an individual or household described 
                in paragraph (1) of the following document 
                replacement fees:
                          (i) The passport application fee for 
                        individuals who lost their United 
                        States passport.
                          (ii) The file search fee for a United 
                        States passport.
                          (iii) The Application for Waiver of 
                        Passport and/or Visa form (Form I-193) 
                        fee.
                          (iv) The Permanent Resident Card 
                        replacement form (Form I-90) filing 
                        fee.
                          (v) The Declaration of Intention form 
                        (Form N-300) filing fee.
                          (vi) The Naturalization/Citizenship 
                        Document replacement form (Form N-565) 
                        filing fee.
                          (vii) The Employment Authorization 
                        form (Form I-765) filing fee.
                          (viii) The biometric service fee.
                  (B) Exemption from form requirement.--The 
                authority of the President to waive fees under 
                clauses (iii) through (viii) of subparagraph 
                (A) applies regardless of whether the 
                individual or household qualifies for a Form I-
                912 Request for Fee Waiver, or any successor 
                thereto.
                  (C) Exemption from assistance maximum.--The 
                assistance limit in subsection (h) shall not 
                apply to any fee waived under this paragraph.
                  (D) Report.--Not later than 365 days after 
                the date of enactment of this paragraph, the 
                Administrator of the Federal Emergency 
                Management Agency and the head of any other 
                agency given critical document fee waiver 
                authority under this paragraph shall submit a 
                report to the Committee on Homeland Security 
                and Governmental Affairs of the Senate and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives on the costs 
                associated with providing critical document fee 
                waivers as described in subparagraph (A).
    (f) State Role.--
          (1) [Financial assistance to address other needs.] 
        State- or tribal-administered assistance and other 
        needs assistance.--
                  (A) Grant to state.--Subject to subsection 
                (g), a Governor may request a grant from the 
                President to provide [financial] assistance to 
                individuals and households in the State under 
                [subsection (e)] subsections (c)(1)(B), (c)(4), 
                and (e) if the President and the State or 
                Tribal government comply, as determined by the 
                Administrator, with paragraph (3).
                  (B) Administrative costs.--A State that 
                receives a grant under subparagraph (A) may 
                expend not more than 5 percent of the amount of 
                the grant for the administrative costs of 
                providing [financial] assistance to individuals 
                and households in the State under [subsection 
                (e)] subsections (c)(1)(B), (c)(4), and (e).
          (2) * * *
          (3) Requirements.--
                  (A) Application.--A State or Tribal 
                government desiring to provide assistance under 
                subsection (c)(1)(B), (c)(4), or (e) shall 
                submit to the President an application for a 
                grant to provide financial assistance under the 
                program.
                  (B) Criteria.--The President, in consultation 
                and coordination with State and Tribal 
                governments, shall establish criteria for the 
                approval of applications submitted under 
                subparagraph (A). The criteria shall include, 
                at a minimum--
                          (i) a requirement that the State or 
                        Tribal government submit a housing 
                        strategy under subparagraph (C);
                          (ii) the demonstrated ability of the 
                        State or Tribal government to manage 
                        the program under this section;
                          (iii) there being in effect a plan 
                        approved by the President as to how the 
                        State or Tribal government will comply 
                        with applicable Federal laws and 
                        regulations and how the State or Tribal 
                        government will provide assistance 
                        under its plan;
                          (iv) a requirement that the State or 
                        Tribal government comply with rules and 
                        regulations established pursuant to 
                        subsection (j); and
                          (v) a requirement that the President, 
                        or the designee of the President, 
                        comply with subsection (i).
                  (C) Requirement of housing strategy.--
                          (i) In general.--A State or Tribal 
                        government submitting an application 
                        under this paragraph shall have an 
                        approved housing strategy, which shall 
                        be developed and submitted to the 
                        President for approval.
                          (ii) Requirements.--The housing 
                        strategy required under clause (i) 
                        shall--
                                  (I) outline the approach of 
                                the State in working with 
                                Federal partners, Tribal 
                                governments, local communities, 
                                non-governmental organizations, 
                                and individual disaster 
                                survivors to meet disaster-
                                related sheltering and housing 
                                needs; and
                                  (II) include the 
                                establishment of an activation 
                                plan for a State Disaster 
                                Housing Task Force, as outlined 
                                in the National Disaster 
                                Housing Strategy, to bring 
                                together State, Tribal, local, 
                                Federal, non-governmental, and 
                                private sector expertise to 
                                evaluate housing requirements, 
                                consider potential solutions, 
                                recognize special needs 
                                populations, and propose 
                                recommendations.
                  (D) Quality assurance.--Before approving an 
                application submitted under this section, the 
                President, or the designee of the President, 
                shall institute adequate policies, procedures, 
                and internal controls to prevent waste, fraud, 
                abuse, and program mismanagement for this 
                program and for programs under subsections 
                (c)(1)(B), (c)(4), and (e). The President shall 
                monitor and conduct quality assurance 
                activities on a State or Tribal government's 
                implementation of programs under subsections 
                (c)(1)(B), (c)(4), and (e). If, after approving 
                an application of a State or Tribal government 
                submitted under this paragraph, the President 
                determines that the State or Tribal government 
                is not administering the program established by 
                this section in a manner satisfactory to the 
                President, the President shall withdraw the 
                approval.
                  (E) Audits.--The Inspector General of the 
                Department of Homeland Security shall provide 
                for periodic audits of the programs 
                administered by States and Tribal governments 
                under this subsection.
                  (F) Applicable laws.--All Federal laws 
                applicable to the management, administration, 
                or contracting of the programs by the Federal 
                Emergency Management Agency under this section 
                shall be applicable to the management, 
                administration, or contracting by a non-Federal 
                entity under this section.
                  (G) Report on effectiveness.--Not later than 
                18 months after the date of enactment of this 
                paragraph, the Inspector General of the 
                Department of Homeland Security shall submit a 
                report to the Committee on Homeland Security 
                and Governmental Affairs of the Senate and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives on the State or 
                Tribal government's role to provide assistance 
                under this section. The report shall contain an 
                assessment of the effectiveness of the State or 
                Tribal government's role in providing 
                assistance under this section, including--
                          (i) whether the State or Tribal 
                        government's role helped to improve the 
                        general speed of disaster recovery;
                          (ii) whether the State or Tribal 
                        government providing assistance under 
                        this section had the capacity to 
                        administer this section; and
                          (iii) recommendations for changes to 
                        improve the program if the State or 
                        Tribal government's role to administer 
                        the programs should be continued.
                  (H) Report on incentives.--Not later than 12 
                months after the date of enactment of this 
                paragraph, the Administrator of the Federal 
                Emergency Management Agency shall submit a 
                report to the Committee on Homeland Security 
                and Governmental Affairs of the Senate and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives on a proposed 
                incentive structure for awards made under this 
                section to encourage participation by eligible 
                States and Tribal governments and to 
                potentially add cost-share requirements that 
                are reasonable to support increased management 
                by State and Tribal governments according to 
                this section.
                  (I) Prohibition.--The President may not 
                condition the provision of Federal assistance 
                under this Act on a State or Tribal government 
                requesting a grant under this section.
                  (J) Miscellaneous.--
                          (i) Notice and comment.--The 
                        Administrator of the Federal Emergency 
                        Management Agency may waive notice and 
                        comment rulemaking with respect to 
                        rules to carry out this section, if the 
                        Administrator determines doing so is 
                        necessary to expeditiously implement 
                        this section, and may carry out this 
                        section as a pilot program until such 
                        regulations are promulgated.
                          (ii) Final rule.--Not later than 2 
                        years after the date of enactment of 
                        this paragraph, the Administrator of 
                        the Federal Emergency Management Agency 
                        shall issue final regulations to 
                        implement this subsection as amended by 
                        the Disaster Recovery Reform Act of 
                        2018.
                          (iii) Waiver and expiration.--The 
                        authority under clause (i) and any 
                        pilot program implemented pursuant to 
                        such clause shall expire 2 years after 
                        the date of enactment of this paragraph 
                        or upon issuance of final regulations 
                        pursuant to clause (ii), whichever 
                        occurs sooner.

           *       *       *       *       *       *       *

    (h) Maximum Amount of Assistance.--
          (1) In general.--No individual or household shall 
        receive financial assistance greater than $ 25,000 
        under this section with respect to a single major 
        disaster, excluding financial assistance to rent 
        alternate housing accommodations under subsection 
        (c)(1)(A)(i) and financial assistance to address other 
        needs under subsection (e).
          (2) Other needs assistance.--The maximum financial 
        assistance any individual or household may receive 
        under subsection (e) shall be equivalent to the amount 
        set forth in paragraph (1) with respect to a single 
        major disaster.
          [(2)] (3) Adjustment of limit.--The limit established 
        under [paragraph (1)] paragraphs (1) and (2) shall be 
        adjusted annually to reflect changes in the Consumer 
        Price Index for All Urban Consumers published by the 
        Department of Labor.
          (4) Exclusion of necessary expenses for individuals 
        with disabilities.--
                  (A) In general.--The maximum amount of 
                assistance established under paragraph (1) 
                shall exclude expenses to repair or replace 
                damaged accessibility-related improvements 
                under paragraphs (2), (3), and (4) of 
                subsection (c) for individuals with 
                disabilities.
                  (B) Other needs assistance.--The maximum 
                amount of assistance established under 
                paragraph (2) shall exclude expenses to repair 
                or replace accessibility-related personal 
                property under subsection (e)(2) for 
                individuals with disabilities.

           *       *       *       *       *       *       *


SEC. 420. FIRE MANAGEMENT ASSISTANCE.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) Hazard Mitigation Assistance.--Whether or not a major 
disaster is declared, the President may provide hazard 
mitigation assistance in accordance with section 404 in any 
area affected by a fire for which assistance was provided under 
this section.
    [d] (e) Rules And Regulations.--The President shall 
prescribe such rules and regulations as are necessary to carry 
out this section.

           *       *       *       *       *       *       *


SEC. 423. APPEALS OF ASSISTANCE DECISIONS.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) Right of Arbitration.--
          (1) In general.--Notwithstanding subsections (a), 
        (b), and (c), an applicant for assistance under this 
        title may request arbitration to dispute the 
        eligibility for assistance or repayment of assistance 
        provided for a dispute of more than $500,000. Such 
        arbitration shall be conducted by the Civilian Board of 
        Contract Appeals and the decision of such Board shall 
        be binding.
          (2) Eligibility.--To participate in arbitration under 
        this subsection, an applicant may submit a request for 
        arbitration after the completion of the first appeal 
        under subsection (a) at any time before the 
        Administrator of the Federal Emergency Management 
        Agency has issued a final agency determination.
          (3) Limitation of appeal.--Upon the submission of a 
        request for arbitration, an applicant shall forfeit all 
        rights to further appeal.

           *       *       *       *       *       *       *


SEC. 428. PUBLIC ASSISTANCE PROGRAM ALTERNATIVE PROCEDURES.

           *       *       *       *       *       *       *


    (d) Participation.--[Participation in]
          (1) In general.--Participation in the alternative 
        procedures adopted under this section shall be at the 
        election of a State, tribal or local government, or 
        owner or operator of a private nonprofit facility 
        consistent with procedures determined by the 
        Administrator.
          (2) No conditions.--The President may not condition 
        the provision of Federal assistance under this Act on 
        the election by a State, Tribal, or local government, 
        or owner or operator of a private nonprofit facility to 
        participate in the alternative procedures adopted under 
        this section.
    (e) Minimum Procedures.--
          (1) For repair, restoration, and replacement of 
        damaged facilities under section 406--

           *       *       *       *       *       *       *

                  (E) in determining eligible costs under 
                section 406, the Administrator shall make 
                available, at an applicant's request and where 
                the Administrator or the certified cost 
                estimate prepared by the applicant's 
                professionally licensed engineers has estimated 
                an eligible Federal share for a project of at 
                least $ 5,000,000, an independent expert panel 
                to validate the estimated eligible cost 
                consistent with applicable regulations and 
                policies implementing this section; [and]
                  (F) in determining eligible costs under 
                section 406, the Administrator shall, at the 
                applicant's request, consider properly 
                conducted and certified cost estimates prepared 
                by professionally licensed engineers (mutually 
                agreed upon by the Administrator and the 
                applicant), to the extent that such estimates 
                comply with applicable regulations, policy, and 
                guidance[.]; and
                  (G) once certified by a professionally 
                licensed engineer and accepted by the 
                Administrator, the estimates on which grants 
                made pursuant to this section are based shall 
                be presumed to be reasonable and eligible 
                costs, as long as there is no evidence of 
                fraud.

           *       *       *       *       *       *       *


SEC. 430. AGENCY ACCOUNTABILITY.

    (a) Public Assistance.--Not later than 5 days after an 
award of a public assistance grant is made under section 406 
that is in excess of $1,000,000, the Administrator of the 
Federal Emergency Management Agency shall publish on the 
website of the Federal Emergency Management Agency the 
specifics of each such grant award, including--
          (1) identifying the Federal Emergency Management 
        Agency Region;
          (2) the disaster or emergency declaration number;
          (3) the State, county, and applicant name;
          (4) if the applicant is a private nonprofit 
        organization;
          (5) the damage category code;
          (6) the amount of the Federal share obligated; and
          (7) the date of the award.
    (b) Mission Assignments.--
          (1) In general.--Not later than 5 days after the 
        issuance of a mission assignment or mission assignment 
        task order, the Administrator of the Federal Emergency 
        Management Agency shall publish on the website of the 
        Federal Emergency Management Agency any mission 
        assignment or mission assignment task order to another 
        Federal department or agency regarding a major disaster 
        in excess of $1,000,000, including--
                  (A) the name of the impacted State or Indian 
                Tribe;
                  (B) the disaster declaration for such State 
                or Indian Tribe;
                  (C) the assigned agency;
                  (D) the assistance requested;
                  (E) a description of the disaster;
                  (F) the total cost estimate;
                  (G) the amount obligated;
                  (H) the State or Tribal cost share, if 
                applicable;
                  (I) the authority under which the mission 
                assignment or mission assignment task order was 
                directed; and
                  (J) if applicable, the date a State or Indian 
                Tribe requested the mission assignment.
          (2) Recording changes.--Not later than 10 days after 
        the last day of each month until a mission assignment 
        or mission assignment task order described in paragraph 
        (1) is completed and closed out, the Administrator of 
        the Federal Emergency Management Agency shall update 
        any changes to the total cost estimate and the amount 
        obligated.
    (c) Disaster Relief Monthly Report.--Not later than 10 days 
after the first day of each month, the Administrator of the 
Federal Emergency Management Agency shall publish on the 
website of the Federal Emergency Management Agency reports, 
including a specific description of the methodology and the 
source data used in developing such reports, including--
          (1) an estimate of the amounts for the fiscal year 
        covered by the President's most recent budget pursuant 
        to section 1105(a) of title 31, United States Code, 
        including--
                  (A) the unobligated balance of funds to be 
                carried over from the prior fiscal year to the 
                budget year;
                  (B) the unobligated balance of funds to be 
                carried over from the budget year to the budget 
                year plus 1;
                  (C) the amount of obligations for 
                noncatastrophic events for the budget year;
                  (D) the amount of obligations for the budget 
                year for catastrophic events delineated by 
                event and by State;
                  (E) the total amount that has been previously 
                obligated or will be required for catastrophic 
                events delineated by event and by State for all 
                prior years, the current fiscal year, the 
                budget year, and each fiscal year thereafter;
                  (F) the amount of previously obligated funds 
                that will be recovered for the budget year;
                  (G) the amount that will be required for 
                obligations for emergencies, as described in 
                section 102(1), major disasters, as described 
                in section 102(2), fire management assistance 
                grants, as described in section 420, surge 
                activities, and disaster readiness and support 
                activities; and
                  (H) the amount required for activities not 
                covered under section 251(b)(2)(D)(iii) of the 
                Balanced Budget and Emergency Deficit Control 
                Act of 1985 (2 U.S.C. 901(b)(2)(D)(iii)); and
          (2) an estimate or actual amounts, if available, of 
        the following for the current fiscal year, which shall 
        be submitted not later than the fifth day of each 
        month, published by the Administrator of the Federal 
        Emergency Management Agency on the website of the 
        Federal Emergency Management Agency not later than the 
        fifth day of each month:
                  (A) A summary of the amount of appropriations 
                made available by source, the transfers 
                executed, the previously allocated funds 
                recovered, and the commitments, allocations, 
                and obligations made.
                  (B) A table of disaster relief activity 
                delineated by month, including--
                          (i) the beginning and ending 
                        balances;
                          (ii) the total obligations to include 
                        amounts obligated for fire assistance, 
                        emergencies, surge, and disaster 
                        support activities;
                          (iii) the obligations for 
                        catastrophic events delineated by event 
                        and by State; and
                          (iv) the amount of previously 
                        obligated funds that are recovered.
                  (C) A summary of allocations, obligations, 
                and expenditures for catastrophic events 
                delineated by event.
                  (D) The cost of the following categories of 
                spending:
                          (i) Public assistance.
                          (ii) Individual assistance.
                          (iii) Mitigation.
                          (iv) Administrative.
                          (v) Operations.
                          (vi) Any other relevant category 
                        (including emergency measures and 
                        disaster resources) delineated by 
                        disaster.
                  (E) The date on which funds appropriated will 
                be exhausted.
    (d) Contracts.--
          (1) Information.--Not later than 10 days after the 
        first day of each month, the Administrator of the 
        Federal Emergency Management Agency shall publish on 
        the website of the Federal Emergency Management Agency 
        the specifics of each contract in excess of $1,000,000 
        that the Federal Emergency Management Agency enters 
        into, including--
                  (A) the name of the party;
                  (B) the date the contract was awarded;
                  (C) the amount and scope of the contract;
                  (D) if the contract was awarded through a 
                competitive bidding process;
                  (E) if no competitive bidding process was 
                used, the reason why competitive bidding was 
                not used; and
                  (F) the authority used to bypass the 
                competitive bidding process.
The information shall be delineated by disaster, if applicable, 
and specify the damage category code, if applicable.
          (2) Report.--Not later than 10 days after the last 
        day of the fiscal year, the Administrator of the 
        Federal Emergency Management Agency shall provide a 
        report to the appropriate committees of Congress 
        summarizing the following information for the preceding 
        fiscal year:
                  (A) The number of contracts awarded without 
                competitive bidding.
                  (B) The reasons why a competitive bidding 
                process was not used.
                  (C) The total amount of contracts awarded 
                with no competitive bidding.
                  (D) The damage category codes, if applicable, 
                for contracts awarded without competitive 
                bidding.
    (e) Collection of Public Assistance Recipient and 
Subrecipient Contracts.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of this subsection, the Administrator 
        of the Federal Emergency Management Agency shall 
        initiate efforts to begin collecting information prior 
        to the project closeout phase on any contract for more 
        than $500,000 that a public assistance recipient or 
        subrecipient enters into using grant monies under 
        section 324, 403, 406, 407, 428, or 502, to improve 
        oversight efforts by the Inspector General of the 
        Department and others, including--
                  (A) the name of each party;
                  (B) the date the contract was awarded;
                  (C) the amount of the contract;
                  (D) the scope of the contract;
                  (E) the period of performance for the 
                contract; and
                  (F) whether the contract was awarded through 
                a competitive bidding process.
          (2) Report.--Not later than 365 days after the date 
        of enactment of this subsection, the Administrator of 
        the Federal Emergency Management Agency shall submit a 
        report to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives on the efforts of the Federal Emergency 
        Management Agency to collect the information described 
        in paragraph (1).

           *       *       *       *       *       *       *


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) * * *
    (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] report for project 
        completion as certified by the grantee, 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) * * *
          (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 for 
        project completion as certified by the grantee shall 
        not constitute evidence to rebut the presumption 
        described in paragraph (1).
          (4) * * *

           *       *       *       *       *       *       *

    (d) Facilitating Closeout.--
          (1) Incentives.--The Administrator of the Federal 
        Emergency Management Agency may develop incentives and 
        penalties that encourage State, Tribal, or local 
        governments to close out expenditures and activities on 
        a timely basis related to disaster or emergency 
        assistance.
          (2) Agency requirements.--The Federal Emergency 
        Management Agency shall, consistent with applicable 
        regulations and required procedures, meet its 
        responsibilities to improve closeout practices and 
        reduce the time to close disaster program awards.

           *       *       *       *       *       *       *


PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965

           *       *       *       *       *       *       *


TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

           *       *       *       *       *       *       *


SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT

    (a) * * *

           *       *       *       *       *       *       *

    (e) Disaster Mitigation.--In providing assistance pursuant 
to subsection (c)(2), if appropriate and as applicable, the 
Secretary may encourage hazard mitigation in assistance 
provided pursuant to such subsection.

           *       *       *       *       *       *       *


POST-KATRINA EMERGENCY MANAGEMENT REFORM ACT OF 2006

           *       *       *       *       *       *       *


TITLE VI--NATIONAL EMERGENCY MANAGEMENT

           *       *       *       *       *       *       *


Subtitle C--Comprehensive Preparedness System

           *       *       *       *       *       *       *


CHAPTER 2--ADDITIONAL PREPAREDNESS

           *       *       *       *       *       *       *



SEC. 661. EMERGENCY MANAGEMENT ASSISTANCE COMPACT GRANTS

    (a) * * *

           *       *       *       *       *       *       *

    (d) Authorization.--There is authorized to be appropriated 
to carry out this section $4,000,000 [for fiscal year 2008] for 
each of fiscal years 2018 through 2022. Such sums shall remain 
available until expended.

SEC. 662. EMERGENCY MANAGEMENT PERFORMANCE GRANTS PROGRAM

    (a) * * *

           *       *       *       *       *       *       *

    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out the program, for each of fiscal 
years 2018 through 2022 [the program--
          [(1) for fiscal year 2008, $ 400,000,000;
          [(2) for fiscal year 2009, $ 535,000,000;
          [(3) for fiscal year 2010, $ 680,000,000;
          [(4) for fiscal year 2011, $ 815,000,000; and
          [(5) for fiscal year 2012], $ 950,000,000.

           *       *       *       *       *       *       *


DISASTER MITIGATION ACT OF 2000

           *       *       *       *       *       *       *


TITLE II--STREAMLINING AND COST REDUCTION

           *       *       *       *       *       *       *


SEC. 205. ASSISTANCE TO REPAIR, RESTORE, RECONSTRUCT, OR REPLACE 
                    DAMAGED FACILITIES.

           *       *       *       *       *       *       *


    (d) * * *
          (1) * * *
          (2) Effective date.--The amendment made by paragraph 
        (1) takes effect on the date of the enactment of this 
        Act and applies to funds appropriated after the date of 
        the enactment of this Act, except that paragraph (1)(B) 
        of section 406(e) of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (as amended by 
        paragraph (1)) takes effect on the date on which the 
        cost estimation procedures established under paragraph 
        (3) of that section take effect.

           *       *       *       *       *       *       *