Disaster Management Act of 2016

Summary: Disaster Management Act of 2016 This bill requires the National Advisory Council of the Federal Emergency Management Agency (FEMA) to commence a comprehensive study relating to disaster losses and federal disaster assistance. The council shall consider: (1) an assessment of trends in disaster costs and losses and federal disaster assistance and factors contributing to such trends; and (2) fundamental principles that drive national disaster assistance decision-making. The council shall: (1) develop recommendations to reduce disaster costs and losses in the United States and to more efficiently and effectively deliver federal disaster assistance; and (2) report to FEMA and Congress on its data, analysis, and recommendations. FEMA shall submit a report that includes an action plan to improve field operations after a major disaster or emergency declaration by the President. FEMA shall establish: (1) a pilot program that increases the amount threshold for use of the simplified procedure for providing assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act for the purpose of determining whether such increase can facilitate a more efficient and effective delivery of assistance, without sacrificing oversight capabilities, for a major disaster or emergency declaration by the President; and (2) a pilot program that modifies the management cost rates used to determine contributions under such Act for management costs for the purpose of determining whether such modifications can facilitate a more efficient and effective administration of disaster assistance grants for a major disaster or emergency.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Management Act of 2016''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Agency.
            (2) Agency.--The term ``Agency'' means the Federal 
        Emergency Management Agency.
            (3) National advisory council.--The term ``National 
        Advisory Council'' means the National Advisory Council of the 
        Agency.

SEC. 3. COMPREHENSIVE STUDY OF DISASTER LOSSES AND FEDERAL DISASTER 
              ASSISTANCE.

    (a) Establishment.--Not later than 30 days after the date of 
enactment of this Act, the Administrator shall commence, acting through 
the National Advisory Council, a comprehensive study relating to 
disaster losses and Federal disaster assistance.
    (b) Additional Membership.--For the purposes of the comprehensive 
study required under subsection (a), as soon as practicable after the 
date of enactment of this Act, the Administrator shall ensure the 
National Advisory Council includes the following members:
            (1) Individuals who have the requisite technical knowledge 
        and expertise on issues related to disaster costs and losses.
            (2) Representatives of the insurance industry.
            (3) Experts in and representatives of the construction and 
        building industry.
            (4) Individuals nominated by national organizations 
        representing State and local governments and personnel.
            (5) Academic experts.
            (6) Representatives of the private industry, such as 
        vendors, developers, and manufacturers of systems, facilities, 
        equipment, and capabilities for emergency management services.
            (7) Other members, as the Administrator considers 
        appropriate.
    (c) Consultation With Nonmembers.--For the purposes of the 
comprehensive study required under subsection (a), the National 
Advisory Council shall consult with other relevant agencies and 
entities that are not represented on the National Advisory Council to 
consider research, data, findings, recommendations, innovative 
technologies and developments, including--
            (1) entities engaged in federally funded research; and
            (2) academic institutions engaged in relevant work and 
        research.
    (d) Study Requirements.--Not later than 120 days after the date of 
enactment of this Act, the National Advisory Council shall convene to 
evaluate disaster losses and Federal disaster assistance, including 
consideration of the following:
            (1) Trends and contributing factors.--An assessment of 
        trends, and factors contributing to such trends, in disaster 
        costs and losses and Federal disaster assistance, including the 
        following:
                    (A) Loss of life and injury.
                    (B) Property damage and other costs to individuals, 
                the private sector, and each level of government.
                    (C) Presidentially declared disasters.
                    (D) Disaster assistance available from all Federal 
                sources.
            (2) Disaster roles and responsibility.--Fundamental 
        principles that drive national disaster assistance 
        decisionmaking, including the appropriate roles for each level 
        of government, the private sector, and individuals.
    (e) Recommendations.--The National Advisory Council shall develop 
recommendations to reduce disaster costs and losses in the United 
States and to more efficiently and effectively deliver Federal disaster 
assistance, including consideration of the following:
            (1) Actions to enhance national disaster assistance 
        decisionmaking.
            (2) Incentives, including tax incentives, to reduce 
        disaster costs and losses and promote a more efficient and 
        effective use of Federal disaster assistance.
            (3) Legislative proposals, including proposals for 
        implementing the recommendations in the report compiled 
        pursuant to the requirement in section 1111 of the Sandy 
        Recovery Improvement Act of 2013 (Public Law 113-2; 127 Stat. 
        49).
            (4) Legal, societal, geographic, technological, and other 
        challenges to implementation of recommendations.
            (5) Projected dollar savings and efficiencies, including 
        measures of effectiveness, from recommendations.
    (f) Report to Administrator and Congress.--Not later than 1 year 
after the National Advisory Council convenes under subsection (d), the 
National Advisory Council shall submit a report containing the data, 
analysis, and recommendations developed under subsections (d) and (e) 
to--
            (1) the Administrator;
            (2) the Committee on Transportation and Infrastructure of 
        the House of Representatives; and
            (3) the Committee on Homeland Security and Governmental 
        Affairs of the Senate.
    (g) Availability of Information.--The Administrator shall make the 
data collected pursuant to this section publically available on the 
website of the Agency.

SEC. 4. ACTION PLAN TO IMPROVE FIELD OPERATIONS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report that includes an action plan to improve field 
operations after a major disaster or emergency declaration by the 
President under section 401 or 501, respectively, of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 
or 5191).
    (b) Requirements.--The report required in subsection (a) shall, at 
a minimum, include a plan with milestones and implementation 
timeframes, to address the following:
            (1) Improving the consistency of grant program guidance, 
        including oral and written guidance, provided to applicants and 
        potential applicants.
            (2) Enhancing record maintenance throughout the lifecycle 
        of a disaster, including the maintenance and transfer of 
        documents during staff transitions.
            (3) Improving technical and other support provided to 
        applicants and grantees to reduce their administrative burden 
        and management costs.
            (4) Implementing new technologies to educate and assist 
        applicants, and continuously inform applicants on the status of 
        their disaster assistance applications and projects.

SEC. 5. SIMPLIFIED PROCEDURE PILOT.

    (a) Pilot Program.--Not later than 120 days after the enactment of 
this Act, the Administrator shall establish a pilot program that 
increases the simplified procedure threshold established under section 
422 of the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5189) for the purpose of determining whether such 
increase can facilitate a more efficient and effective delivery of 
assistance, without sacrificing oversight capabilities, for a major 
disaster or emergency declaration by the President under section 401 or 
501, respectively, of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170 or 5191).
    (b) Increase Threshold.--For emergency assistance and major 
disasters subject to the pilot program established under subsection 
(a), the simplified procedure threshold, as established under section 
422 of the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5189), shall increase to not less than $500,000 and not 
more than $1,000,000.
    (c) Eligible Declarations.--A major disaster or emergency declared 
by the President under section 401 or 501, respectively, of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5170 or 5191) may be eligible for the pilot program established under 
subsection (a) if the declaration is made after the date of enactment 
of this Act.
    (d) Review.--The President, acting through the Administrator, 
shall--
            (1) review the results of the pilot program established in 
        subsection (a) and determine whether the increase in the 
        simplified procedure threshold facilitated a more efficient and 
        effective delivery of assistance, without sacrificing oversight 
        capabilities, for a major disaster or emergency declaration 
        under section 401 or 501, respectively, of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5170 or 5191); and
            (2) not later than January 31, 2020, report the results of 
        the review required in paragraph (1) to the Committee on 
        Homeland Security and Governmental Affairs of the Senate and 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives.
    (e) Sunset.--
            (1) In general.--Except as provided in paragraph (2), a 
        major disaster or emergency declared by the President under 
        section 401 or 501, respectively, of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 or 
        5191) shall not be eligible for the pilot program established 
        under subsection (a) if the declaration is made after January 
        31, 2020.
            (2) Exception.--If the Administrator, based on the review 
        conducted under subsection (d), determines that an increase in 
        the simplified procedure threshold can facilitate a more 
        efficient and effective delivery of assistance for emergencies 
        and major disasters, the date in paragraph (1) may be extended 
        to April 30, 2020, for the purpose of promulgating regulations 
        to increase the simplified procedure threshold.
    (f) Technical and Conforming Amendment.--Section 422(b) of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5189(b)) is amended by striking paragraph (3) and inserting the 
following:
            ``(3) Review.--Not later than January 31, 2020, and every 3 
        years thereafter, the President, acting through the 
        Administrator, shall review the threshold for eligibility under 
        this section.''.
    (g) Applicability of Other Law.--In carrying out this section, the 
Administrator shall not be subject to the requirements of--
            (1) section 553 of title 5, United States Code;
            (2) chapter 6 of title 5, United States Code; or
            (3) subchapter I of chapter 35 of title 44, United States 
        Code.

SEC. 6. MANAGEMENT COSTS PILOT.

    (a) Pilot Program.--Not later than 120 days after the date of 
enactment of this Act, the Administrator shall establish a pilot 
program that modifies the management cost rates established under 
section 324 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5165b) for the purpose of determining whether 
such modifications can facilitate a more efficient and effective 
administration of disaster assistance grants for a major disaster or 
emergency declared by the President under section 401 or 501, 
respectively, of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170 or 5191).
    (b) Specific Management Costs.--For grantees and subgrantees 
subject to the pilot program established under subsection (a), the 
Administrator shall provide the following percentage rates, in addition 
to the eligible project costs, to cover direct and indirect costs of 
administering the following programs:
            (1) Hazard mitigation.--A grantee under section 404 of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5170c) may be reimbursed not more than 15 percent of 
        the total amount of the grant award under such section 404, of 
        which not more than 10 percent may be used by the grantee and 
        not more than 5 percent may be used by the subgrantee for such 
        costs.
            (2) Public assistance.--A grantee under sections 403, 406, 
        407, or 502 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170b, 5172, 5173, or 5192) 
        may be reimbursed not more than 10 percent of the total award 
        amount under such section 403, 406, 407, or 502, of which not 
        more than 6 percent may be used by the grantee and not more 
        than 4 percent may be used by the subgrantee for such costs.
    (c) Eligible Declarations.--A major disaster or emergency declared 
by the President under section 401 or 501, respectively, of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5170 or 5191) may be eligible for the pilot program established under 
subsection (a) if the declaration is made after the date of enactment 
of this Act.
    (d) Review.--The President, acting through the Administrator, 
shall--
            (1) review the results of the pilot program established 
        under subsection (a) and determine whether the modifications to 
        the management cost rates in subsection (b) facilitated a more 
        efficient and effective administration of disaster assistance 
        grants for a major disaster or emergency declared by the 
        President under section 401 or 501, respectively, of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5170 or 5191); and
            (2) not later than January 31, 2020, report the results of 
        the review required under paragraph (1) to the Committee on 
        Homeland Security and Governmental Affairs of the Senate and 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives.
    (e) Sunset.--
            (1) In general.--Except as provided in paragraph (2), a 
        major disaster or emergency declared by the President under 
        section 401 or 501, respectively, of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 or 
        5191) shall not be eligible for the pilot program established 
        under subsection (a) if the declaration is made after January 
        31, 2020.
            (2) Exception.--If the Administrator, based on the review 
        conducted under subsection (d), determines that the 
        modifications to management cost rates in subsection (b) can 
        facilitate a more efficient and effective administration of 
        disaster assistance grants for a major disaster or emergency 
        declared by the President under section 401 or 501, 
        respectively, of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170 or 5191), the date in 
        paragraph (1) may be extended to April 30, 2020, for the 
        purpose of promulgating regulations to modify management cost 
        rates.
    (f) Technical and Conforming Amendment.--Section 324(a) of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5165b(a)) is amended by striking ``any administrative expense, 
and any other expense not directly chargeable to'' and inserting 
``direct administrative cost, and any other administrative expense 
associated with''.
    (g) Applicability of Other Law.--In carrying out this section, the 
Administrator shall not be subject to the requirements of--
            (1) section 553 of title 5, United States Code;
            (2) chapter 6 of title 5, United States Code; or
            (3) subchapter I of chapter 35 of title 44, United States 
        Code.