Disaster grant closeout procedures

42 U.S.C. § 5205

• Title: 42 — The Public Health and Welfare
• Chapter: SUBCHAPTER V—MISCELLANEOUS

Text

(a) Statute of limitations
Notwithstanding section 3716(e) of title 31 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 chapter shall be initiated in any forum 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.
The limitation under paragraph (1) shall apply unless there is evidence of civil or criminal fraud.
(b) Rebuttal of presumption of record maintenance
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 accounting records were maintained that adequately identify the source and application of funds provided for financially assisted activities.
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.
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).
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 chapter if—
(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.
(d) Facilitating closeout
The Administrator of the Federal Emergency Management Agency may develop incentives 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 assistance.
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.

History

(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

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 section 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 completion as certified by the grantee" for "report for the disaster or emergency".
Subsec. (b)(1). Pub. L. 115–254, §1216(c)(1)(B)(i), substituted "report for project completion as certified by the grantee" for "report for the disaster or emergency".
Subsec. (b)(3). Pub. L. 115–254, §1216(c)(1)(B)(ii), inserted "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 President 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 section 1202 of Pub. L. 115–254, set out as a note under section 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 regulations to implement the amendment made by this section [amending this section]."