42 U.S.C. § 5205 — Disaster grant closeout procedures

Page 6472 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5204c 1 See References in Text note below. and recommendations on how to improve public health and safety, survivability of infrastruc- ture, recovery efforts, and effective use of funds in the event of future disasters. (Pub. L. 102–247, title II, § 203, Feb. 24, 1992, 106 Stat. 37; Pub. L. 103–437, § 15(p), Nov. 2, 1994, 108 Stat. 4594; Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006, 120 Stat. 1410.) Editorial Notes CODIFICATION Section was enacted as part of the Omnibus Insular Areas Act of 1992, and not as part of the Robert T. Staf- ford Disaster Relief and Emergency Assistance Act which comprises this chapter. AMENDMENTS 1994—Subsec. (b). Pub. L. 103–437 substituted ‘‘House Committee on Natural Resources’’ for ‘‘House Com- mittee on Interior and Insular Affairs’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Administrator of the Federal Emergency Manage- ment Agency’’ substituted for ‘‘Director of the Federal Emergency Management Agency’’ in subsecs. (a) and (b) on authority of section 612(c) of Pub. L. 109–295, set out as a note under section 313 of Title 6, Domestic Se- curity. Any reference to the Administrator of the Fed- eral Emergency Management Agency in title VI of Pub. L. 109–295 or an amendment by title VI to be considered to refer and apply to the Director of the Federal Emer- gency Management Agency until Mar. 31, 2007, see sec- tion 612(f)(2) of Pub. L. 109–295, set out as a note under section 313 of Title 6. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For transfer of functions, personnel, assets, and li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. § 5204c. Hazard mitigation for insular areas The total of contributions under the last sen- tence of section 5170c of this title for the insular areas shall not exceed 10 percent of the esti- mated aggregate amounts of grants to be made under sections 5170b, 5172, 5173, 5174, and 5178 1 of this title for any disaster: Provided, That the President shall require a 50 percent local match for assistance in excess of 10 percent of the esti- mated aggregate amount of grants to be made under section 5172 of this title for any disaster. (Pub. L. 102–247, title II, § 204, Feb. 24, 1992, 106 Stat. 38.) Editorial Notes REFERENCES IN TEXT Section 5178 of this title, referred to in text, was re- pealed by Pub. L. 106–390, title II, § 206(c), Oct. 30, 2000, 114 Stat. 1571, effective 18 months after Oct. 30, 2000. CODIFICATION Section was enacted as part of the Omnibus Insular Areas Act of 1992, and not as part of the Robert T. Staf- ford Disaster Relief and Emergency Assistance Act which comprises this chapter. § 5205. Disaster grant closeout procedures (a) Statute of limitations (1) In general Notwithstanding section 3716(e) of title 31 and except as provided in paragraph (2), no ad- ministrative action to recover any payment made to a State or local government for dis- aster or emergency assistance under this chap- ter shall be initiated in any forum after the date that is 3 years after the date of trans- mission of the final expenditure report for project completion as certified by the grantee. (2) Fraud exception The limitation under paragraph (1) shall apply unless there is evidence of civil or crimi- nal fraud. (b) Rebuttal of presumption of record mainte- nance (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 project completion as certified by the grantee, there shall be a presumption that ac- counting records were maintained that ade- quately identify the source and application of funds provided for financially assisted activi- ties. (2) Affirmative evidence The presumption described in paragraph (1) may be rebutted only on production of affirm- ative evidence that the State or local govern- ment did not maintain documentation de- scribed in that paragraph. (3) Inability to produce documentation The inability of the Federal, State, or local government to produce source documentation supporting expenditure reports later than 3 years after the date of transmission of the final expenditure report for project completion as certified by the grantee shall not constitute evidence to rebut the presumption described in paragraph (1). (4) Right of access The period during which the Federal, State, or local government has the right to access source documentation shall not be limited to the required 3-year retention period referred to in paragraph (3), but shall last as long as the records are maintained. (c) Binding nature of grant requirements A State or local government shall not be lia- ble for reimbursement or any other penalty for any payment made under this chapter if— Page 6473 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 5206 (1) the payment was authorized by an ap- proved agreement specifying the costs; (2) the costs were reasonable; and (3) the purpose of the grant was accom- plished. (d) Facilitating closeout (1) Incentives The Administrator of the Federal Emer- gency Management Agency may develop in- centives and penalties that encourage State, local, or Indian tribal governments to close out expenditures and activities on a timely basis related to disaster or emergency assist- ance. (2) Agency requirements The Federal Emergency Management Agen- cy shall, consistent with applicable regula- tions and required procedures, meet its re- sponsibilities to improve closeout practices and reduce the time to close disaster program awards. (Pub. L. 93–288, title VII, § 705, as added Pub. L. 106–390, title III, § 304, Oct. 30, 2000, 114 Stat. 1573; amended Pub. L. 115–254, div. D, §§ 1216(c)(1), 1221(a), Oct. 5, 2018, 132 Stat. 3451, 3453.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(1) and (c), was in the original ‘‘this Act’’, meaning Pub. L. 93–288, May 22, 1974, 88 Stat. 143. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 5121 of this title and Tables. AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–254, § 1216(c)(1)(A), substituted ‘‘Notwithstanding section 3716(e) of title 31 and except’’ for ‘‘Except’’ and ‘‘report for project com- pletion as certified by the grantee’’ for ‘‘report for the disaster or emergency’’. Subsec. (b)(1). Pub. L. 115–254, § 1216(c)(1)(B)(i), sub- stituted ‘‘report for project completion as certified by the grantee’’ for ‘‘report for the disaster or emer- gency’’. Subsec. (b)(3). Pub. L. 115–254, § 1216(c)(1)(B)(ii), in- serted ‘‘for project completion as certified by the grantee’’ after ‘‘final expenditure report’’. Subsec. (d). Pub. L. 115–254, § 1221(a), added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–254 applicable to each major disaster and emergency declared by the Presi- dent on or after Aug. 1, 2017, and authorities provided under div. D of Pub. L. 115–254 applicable to each major disaster and emergency declared by the President on or after Jan. 1, 2016, except as otherwise provided, see sec- tion 1202 of Pub. L. 115–254, set out as a note under sec- tion 5121 of this title. REGULATIONS Pub. L. 115–254, div. D, § 1221(b), Oct. 5, 2018, 132 Stat. 3454, provided that: ‘‘The Administrator [of the Federal Emergency Management Agency] shall issue regula- tions to implement the amendment made by this sec- tion [amending this section].’’ § 5205a. Certain recoupment prohibited (a) In general Notwithstanding any other provision of law, the Agency shall deem any covered disaster as- sistance to have been properly procured, pro- vided, and utilized, and shall restore any fund- ing of covered disaster assistance previously provided but subsequently withdrawn or deobligated. (b) Covered disaster assistance defined In this section, the term ‘‘covered disaster as- sistance’’ means assistance— (1) provided to a local government pursuant to section 5170b, 5172, or 5173 of this title; and (2) with respect to which the inspector gen- eral of the Department of Homeland Security has determined, after an audit, that— (A) the Agency deployed to the local gov- ernment a Technical Assistance Contractor to review field operations, provide eligibility advice, and assist with day-to-day decisions; (B) the Technical Assistance Contractor provided inaccurate information to the local government; and (C) the local government relied on the in- accurate information to determine that rel- evant contracts were eligible, reasonable, and reimbursable. (c) Effective date This section shall be effective on October 5, 2018. (Pub. L. 115–254, div. D, § 1237, Oct. 5, 2018, 132 Stat. 3464.) Editorial Notes CODIFICATION Section was enacted as part of the Disaster Recovery Reform Act of 2018 and as part of the FAA Reauthoriza- tion Act of 2018, and not as part of the Robert T. Staf- ford Disaster Relief and Emergency Assistance Act which comprises this chapter. Statutory Notes and Related Subsidiaries DEFINITIONS For definition of ‘‘Agency’’ as used in this section, see section 1203 of Pub. L. 115–254, set out as a note under section 5122 of this title. § 5206. Buy American (a) Compliance with chapter 83 of title 41 No funds authorized to be appropriated under this Act or any amendment made by this Act may be expended by an entity unless the entity, in expending the funds, complies with chapter 83 of title 41. (b) Debarment of persons convicted of fraudu- lent use of ‘‘Made in America’’ labels (1) In general If the Administrator of the Federal Emer- gency Management Agency determines that a person has been convicted of intentionally affixing a label bearing a ‘‘Made in America’’ inscription to any product sold in or shipped to the United States that is not made in America, the Administrator shall determine, not later than 90 days after determining that the person has been so convicted, whether the person should be debarred from contracting under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).