69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–100 

AMENDING THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT CONCERNING THE STATUTE OF LIMITATIONS 

FOR ACTIONS TO RECOVER DISASTER OR EMERGENCY ASSISTANCE 

PAYMENTS, AND FOR OTHER PURPOSES 

APRIL 28, 2017.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. SHUSTER, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 1678] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 1678) to amend the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act concerning the statute of limitations for actions to recover disaster or emergency assistance payments, and for other purposes, having considered the 

same, report favorably thereon without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose of Legislation ............................................................................................. 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Legislative History and Consideration .................................................................. 4 

Committee Votes ...................................................................................................... 4 

Committee Oversight Findings ............................................................................... 4 

New Budget Authority and Tax Expenditures ...................................................... 4 

Congressional Budget Office Cost Estimate .......................................................... 4 

Performance Goals and Objectives ......................................................................... 5 

Advisory of Earmarks .............................................................................................. 5 

Duplication of Federal Programs ............................................................................ 6 

Disclosure of Directed Rule Makings ..................................................................... 6 

Federal Mandate Statement ................................................................................... 6 

Preemption Clarification ......................................................................................... 6 

Advisory Committee Statement .............................................................................. 6 

Applicability of Legislative Branch ........................................................................ 6 

Section-by-Section Analysis of Legislation ............................................................ 6 

Changes in Existing Law Made by the Bill, as Reported ..................................... 6 


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PURPOSE OF LEGISLATION

H.R. 1678 amends the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (Stafford Act) concerning the statute of 

limitations for actions to recover disaster or emergency assistance. 

BACKGROUND AND NEED FOR LEGISLATION

Federal Emergency Management Agency: History 

The Federal Emergency Management Agency (FEMA) was established in 1979 by Executive Order 12148 by President Jimmy Carter in response to a number of massive disasters in the 1960s and 

1970s. As a result of states trying to manage these disasters, the 

National Governors Association and others made a proposal to 

streamline and cut the number of agencies states were required to 

work with following a disaster. Prior to the creation of FEMA, the 

federal government’s emergency response mechanisms were scattered among many agencies throughout government. The creation 

of FEMA helped to centralize these authorities and the coordination of the federal government’s response to a disaster. The Disaster Relief Act of 1974 (P.L. 93–288), which constituted the statutory authority for most federal disaster response activities, especially of FEMA, was later amended by the Stafford Act (P.L. 100– 

707). 

Following more than two decades as an independent agency, the 

Homeland Security Act of 2002 (P.L. 107–296) created the Department of Homeland Security (DHS), placed FEMA within DHS, and 

FEMA’s functions were dispersed among various offices and directorates within DHS. In 2006, following Hurricanes Katrina and 

Rita and the intensive Congressional investigations and oversight, 

Congress enacted the Post-Katrina Emergency Management Reform Act of 2006 (PKEMRA) (P.L. 109–295), which addresses key 

response roles and authorities and put FEMA back together again 

within DHS. PKEMRA authorized the National Preparedness System and FEMA for the first time in legislation. Most recently, Congress enacted the Sandy Recovery Improvement Act (SRIA) (P.L. 

113–2), on January 29, 2013, in the wake of Hurricane Sandy’s impact to the East Coast. SRIA provided additional authorities to expedite and streamline Hurricane Sandy recovery efforts, reduce 

costs, and improve the effectiveness of several disaster assistance 

programs authorized by the Stafford Act. 

Disaster response and recovery 

When the President declares a major disaster or emergency, the 

official declaration triggers certain federal response authorities and 

financial disaster assistance. In particular, when a declaration is 

made, the President is authorized to direct any federal agency, 

with or without reimbursement, to assist state and local governments and protect life and property. FEMA is responsible for coordinating federal agency response and ensuring the necessary federal capabilities are deployed at the appropriate place and time in 

support of state and local response efforts. In addition, FEMA provides direct support and financial assistance to states and local 

governments and individuals as authorized under the Stafford Act. 


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Statute of limitations 

H.R. 1678 clarifies the three-year statute of limitations on FEMA 

actions to recover funds from grantees, and establishes that the 

statute of limitations begins to run when each project has been concluded. FEMA’s existing regulations for ‘‘payment of claims’’ requires that each subgrantee notify the state when all projects have 

been completed. The Committee understands FEMA does not have 

a consistent form for how this notification is provided. Therefore, 

FEMA should accept reasonable notifications submitted to meet 

this requirement as satisfaction of meeting the requirement to submit an ‘‘expenditure report for project completion as certified by the 

grantee,’’ as stated in the legislation. This can include a final letter 

indicating completion or other written communication that funds 

have been expended and the project is complete. The Committee 

urges FEMA to work closely with grantees to encourage the timely 

closeout of projects. The Committee also encourages FEMA to develop a uniform process and clear guidance for grantees and subgrantees to meet this requirement. 

This legislative change is applicable to any action FEMA has 

pending against a state, local, or tribal government to recover disaster assistance payments where the grantee has not received a 

final agency determination (e.g., the applicant has not exhausted 

all administrative remedies and their appeals have not concluded). 

HEARINGS

The Subcommittee on Economic Development, Public Buildings, 

and Emergency Management, held no hearings on this topic in the 

115th Congress. However, the following hearings and roundtable 

discussions were held by the Subcommittee on subjects related to 

matters contained in H.R. 1678 during the 114th Congress: 

‘‘Rebuilding after the Storm: Lessening Impacts and Speeding 

Recovery’’ held on January 27, 2015. The purpose of the hearing was to launch an assessment of the rising costs of disasters, the cost effectiveness of disaster assistance, strategies to 

reduce disaster losses, and the appropriate roles of government 

and the private sector, and to consider reforms to save lives 

through improved alerts and warning systems and search and 

rescue. 

‘‘What is Driving the Increasing Costs and Rising Losses from 

Disasters?’’ held on March 18, 2015. The purpose of the roundtable was to examine and discuss data related to disaster costs, 

the trends observed over time, and the projections for the future given the policies in place today. 

‘‘The State of Pennsylvania and FEMA Region III are Leaders in Mitigating Disaster Costs and Losses’’ held on May 28, 

2015. The purpose of the roundtable was to examine disaster 

costs and losses, focus on hazards impacting Pennsylvania and 

the region, and identify best practices for mitigating and avoiding disaster impacts. 

‘‘Federal Disaster Assistance: Roles, Programs and Coordination’’ held on June 17, 2015. The purpose of the roundtable was 

to examine and discuss federal disaster assistance programs, 

the requirements and effectiveness of those programs, and coordination among various agencies and stakeholders. 


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‘‘Controlling the Rising Cost of Federal Responses to Disaster’’ held on May 12, 2016. The purpose of the hearing was 

to begin exploring potential solutions and the principles that 

should be driving solutions to lower the overall costs of disasters and to help avoid devastating losses. 

LEGISLATIVE HISTORY AND CONSIDERATION

On March 22, 2017, Congresswoman Lois Frankel (D–FL) introduced H.R. 1678, a bill to amend the Stafford Act concerning the 

statute of limitations for actions to recover disaster or emergency 

assistance payments. 

On March 29, 2017, the Committee on Transportation and Infrastructure met in open session to consider H.R. 1678. The Committee ordered the bill reported favorably to the House by voice 

vote with a quorum present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires each committee report to include the total number of 

votes cast for and against on each record vote on a motion to report 

and on any amendment offered to the measure or matter, and the 

names of those members voting for and against. There were no recorded votes taken in connection with consideration of H.R. 1678 

or ordering the measure reported. A motion to order H.R. 1678 reported favorably to the House was agreed to by voice vote with a 

quorum present. 

COMMITTEE OVERSIGHT FINDINGS

With respect to the requirements of clause 3(c)(1) of rule XIII of 

the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives does not apply where a cost estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974 has been timely 

submitted prior to the filing of the report and is included in the report. Such a cost estimate is included in this report. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

With respect to the requirement of clause 3(c)(3) of rule XIII of 

the Rules of the House of Representatives and section 402 of the 

Congressional Budget Act of 1974, the Committee has received the 

enclosed cost estimate for H.R. 1678 from the Director of the Congressional Budget Office: 

APRIL 20, 2017. 

Hon. BILL SHUSTER, 

Chairman, Committee on Transportation and Infrastructure, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1678, a bill to amend the 


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Robert T. Stafford Disaster Relief and Emergency Assistance Act 

concerning the statute of limitations for actions to recover disaster 

or emergency assistance payments, and for other purposes. 

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. 

Enclosure. 

H.R. 1678—A bill to amend the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act concerning the statute of limitations for actions to recover disaster or emergency assistance 

payments, and for other purposes 

H.R. 1678 would establish a three-year statute of limitations on 

actions to recover Federal Emergency Management Agency (FEMA) 

grants provided to state or local governments following a declared 

disaster. That limitation would not apply in situations where there 

is evidence of fraud, waste, or abuse. Under current law, FEMA 

has the authority to recover disaster assistance grants that are 

unspent at any time after the date of disbursement. 

Enacting H.R. 1678 could reduce the amount of unspent disaster 

assistance recovered by FEMA. The loss of such recoveries, which 

are treated as reductions in direct spending when they are collected, would increase direct spending of previously appropriated 

funds; therefore, pay-as-you-go procedures apply. Those recoveries, 

which CBO estimates would not be significant in any year, are deposited into the Disaster Relief Fund and are available to be spent 

without further appropriation; therefore, CBO estimates that the 

net effect on the deficit would be negligible. Enacting the bill would 

not affect revenues. 

CBO estimates that enacting H.R. 1678 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

H.R. 1678 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Robert Reese. The estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

With respect to the requirement of clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, the performance goal 

and objective of this legislation is to amend the statute of limitations governing the Administrator of FEMA’s actions to recover disaster or emergency assistance payments. 

ADVISORY OF EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, the Committee is required to include a list of congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 

the House of Representatives. No provision in the bill includes an 


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earmark, limited tax benefit, or limited tariff benefit under clause 

9(e), 9(f), or 9(g) of rule XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that no provision of H.R. 

1678 establishes or reauthorizes a program of the federal government known to be duplicative of another federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139, or a program related to a program identified in the 

most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), the 

Committee finds that enacting H.R. 1678 does not direct the completion of a specific rule making within the meaning of section 551 

of title 5, United States Code. 

FEDERAL MANDATE STATEMENT

The Committee adopts as its own the estimate of federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act 

(Public Law 104–4). 

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the 

report of any Committee on a bill or joint resolution to include a 

statement on the extent to which the bill or joint resolution is intended to preempt state, local, or tribal law. The Committee states 

that H.R. 1678 does not preempt any state, local, or tribal law. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act are created by this legislation. 

APPLICABILITY OF LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1). 

SECTION-BY-SECTION ANALYSIS OF LEGISLATION

Section 1: Statute of limitations 

Section 1 amends the Stafford Act to reestablish a three-year 

statute of limitations once a report for project completion has been 

filed. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 


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as reported, are shown as follows (existing law proposed to be omitted is enclosed in black 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 VII—MISCELLANEOUS 

* * * * * * * 

SEC. 705. DISASTER GRANT CLOSEOUT PROCEDURES. 

(a) STATUTE OF LIMITATIONS.— 

(1) IN GENERAL.—øExcept¿ 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 øreport for the disaster or emergency¿ 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 criminal fraud. 

(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, 

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) AFFIRMATIVE EVIDENCE.—The presumption described in 

paragraph (1) may be rebutted only on production of affirmative evidence that the State or local government did not maintain documentation described 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 

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 liable for reimbursement or any other penalty for any payment made under this Act if— 


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(1) the payment was authorized by an approved agreement 

specifying the costs; 

(2) the costs were reasonable; and 

(3) the purpose of the grant was accomplished. 

* * * * * * * 

Æ 


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