[House Report 117-61]
[From the U.S. Government Publishing Office]


117th Congress    }                                      {  Rept. 117-61
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                      {     Part 1

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



 
                PREVENTING DISASTER REVICTIMIZATION ACT

                                _______
                                

 June 14, 2021.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. DeFazio, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 539]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 539) to amend the Disaster Recovery 
Reform Act of 2018 to require the Administrator of the Federal 
Emergency Management Agency to waive certain debts owed to the 
United States related to covered assistance provided to an 
individual or household, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Legislative History and Consideration............................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority and Tax Expenditures........................     3
Congressional Budget Office Cost Estimate........................     4
Performance Goals and Objectives.................................     5
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     6
Federal Mandates Statement.......................................     6
Preemption Clarification.........................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
 Changes in Existing Law Made by the Bill, as Reported...........     7

                         Purpose of Legislation

    The purpose of H.R. 539 is to amend the Disaster Recovery 
Reform Act of 2018 (DRRA, Division D of P.L. 115-254) to 
require the Administrator of the Federal Emergency Management 
Agency (FEMA) to waive certain debts owed to the United States 
related to covered assistance provided to an individual or 
household.

                  Background and Need for Legislation

    Section 408 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (Stafford Act, P.L. 93-288, as 
amended) authorizes FEMA to provide financial assistance and 
services to individuals and households who have necessary 
expenses as a direct result of a major disaster. In some 
instances, Section 408 assistance is erroneously provided to 
individuals and households and FEMA must recoup the funds from 
the recipient. Assistance is often spent by the recipient 
before an error is discovered, creating a debt to the federal 
government.
    Section 1216(a) of the DRRA authorizes FEMA to waive debts 
owed to the United States related to assistance provided under 
Section 408 of the Stafford Act. Further, DRRA Section 1216(a) 
currently allows FEMA to waive a debt related to covered 
assistance if the debt was distributed in error by FEMA without 
fault by the debtor and collection would be ``against equity 
and good conscience.''
    H.R. 539 amends DRRA Section 1216(a) by directing the 
Administrator of FEMA to waive debts owed by individuals and 
households to the United States when: (1) disaster assistance 
was provided as a result of Agency error (such debt is deemed 
to be a hardship); or (2) the disaster assistance provided 
might be subject to a claim or legal action taken by the 
Agency. The bill also requires FEMA to report to Congress 
detailing the number of errors the Agency has made in providing 
assistance to disaster victims and include proposed actions to 
reduce future errors.

                                Hearings

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
117th Congress, the following hearing was used to development 
or consider H.R. 539:
    On March 18, 2021, the Subcommittee held a hearing titled 
``Building Smarter: The Benefits of Investing in Resilience and 
Mitigation.'' The Subcommittee received testimony from Mr. 
Russell ``Russ'' Strickland, Executive Director, Maryland 
Emergency Management Agency, State of Maryland, testifying on 
behalf of the National Emergency Management Association; Mr. 
Roy E. Wright, President and Chief Executive Officer, Insurance 
Institute for Business and Home Safety; Ms. Velma Smith, Senior 
Government Relations Officer, Flood Prepared Communities 
Initiative, Pew Charitable Trusts; Mr. Ben Harper, Head of 
Corporate Sustainability, Zurich North America Insurance 
Company; and Mr. John ``Chuck'' Fowke, Chairman, National 
Association of Home Builders. This hearing examined the current 
and future capacities in emergency management, mitigation and 
resilience, insurance, and construction.
    In the 116th Congress, the following hearing was used to 
develop or consider the legislation:
    On October 22, 2019, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing titled ``An Assessment of Federal Recovery Efforts from 
Recent Disasters.'' Witnesses included Panel I: Mr. Jeffrey 
Byard, Associate Administrator, Office of Response and 
Recovery, Federal Emergency Management Agency; Mr. Dennis 
Alvord, Deputy Assistant Secretary, Economic Development 
Administration; Mr. Chris Currie, Director, Homeland Security 
and Justice, Government Accountability Office. Panel II: Mr. 
Mike Sprayberry, Director, Emergency Management, North Carolina 
Department of Public Safety, testifying on behalf of the 
National Emergency Management Association; the Honorable 
Fernando Gil-Ensenat, Secretary, Commonwealth of Puerto Rico 
Department of Housing, Ms. Rhonda Wiley, Administrator, 
Emergency Management and Flood Plains, Atchison County, 
Missouri; Mr. Reese May, Chief Innovation Officer, SBP. Topics 
discussed included disaster losses and Federal disaster 
spending, FEMA workforce readiness, and administration of 
public assistance in the U.S. and its territories.

                 Legislative History and Consideration

    H.R. 539 was introduced in the House on January 28, 2021, 
by Mr. Graves of Missouri and six original cosponsors. It was 
referred to the Committee on Transportation and Infrastructure 
and to the Committee on the Budget. Within the Committee, H.R. 
539 was referred to the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management.
    The Subcommittee on Economic Development, Public Buildings, 
and Emergency Management was discharged from further 
consideration of H.R. 539 on March 24, 2021.
    The Full Committee considered H.R. 539 on March 24, 2021 
and ordered the measure to be reported to the House with a 
favorable recommendation, by voice vote.

                            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.
    No record votes were requested during consideration of H.R. 
539.

                      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. 539 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 14, 2021.
Hon. Peter A. DeFazio,
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. 539, the 
Preventing Disaster Revictimization Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    

    Except in cases involving fraud, H.R. 539 would require the 
Federal Emergency Management Agency (FEMA) to waive the 
collection of improper payments provided to individuals or 
households after major disasters declared under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act. The bill 
also would require FEMA to report on its processes for 
determining the distribution of disaster assistance.
    Under current law, FEMA must recoup improper payments, 
which can stem from errors in processing or from duplicate 
payments. Recouped amounts are deposited into the Disaster 
Relief Fund and are available to spend without further 
appropriation. The agency currently has limited discretion to 
waive debts.
    CBO assumes that the bill will be enacted late in fiscal 
year 2021. Accordingly, the budgetary effects would begin in 
2022. Using information from the agency, CBO estimates that, in 
nearly all eligible cases under the bill, FEMA would waive 
collections, which currently total $36 million. Those 
collections are recorded as reductions in direct spending, so 
waiving them would increase direct spending. However, those 
amounts would have been available to spend, so the bill also 
would reduce outlays. Because collections precede spending, 
enacting the bill would increase direct spending by $2 million 
over the 2021-2026 period but would have no net effect on 
direct spending over the 2021-2031 period.
    The bill would not change FEMA's authority to provide 
disaster relief; therefore, in CBO's view H.R. 539 also would 
implicitly authorize the appropriation of amounts equal to the 
forgone recoveries. Thus, CBO estimates that implementing the 
bill would cost $36 million over the 2021-2031 period, assuming 
appropriation of the necessary amounts.
    CBO estimates that the cost to FEMA of reporting on the 
distribution of disaster assistance to individuals and 
households would not be significant.
    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 procedures are shown in Table 1.

  TABLE 1.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 539, THE PREVENTING DISASTER REVICTIMIZATION ACT, AS ORDERED REPORTED BY THE
                                         HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON MARCH 24, 2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2021   2022   2023   2024   2025   2026   2027   2028   2029   2030   2031  2021-2026  2021-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Net Increase or Decrease (-) in the Deficit
 
Pay-As-You-Go Effect.................................      0      4      0      0     -1     -1     -2      0      0      0      0         2          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of 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 
prevent undue hardship to disaster victims caused by Agency 
error or legal action.

                    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. 539 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.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates 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 finds that H.R. 539 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 were created by this 
legislation.

                  Applicability to 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 the Legislation


Section 1. Short title

    This section provides that this bill may be cited as the 
``Preventing Disaster Revictimization Act''.

Sec. 2. Flexibility

    This section amends section 1216(a) of the Disaster 
Recovery Reform Act of 2018 by waiving debts owed to the United 
States related to covered assistance provided to an individual 
or household if the assistance was distributed based on an 
error by FEMA or is subject to a claim or legal action. The 
section also removes language eliminating the Administrator's 
authority to waive debt and replaces it with a requirement to 
report proposed actions to reduce the error rate to the 
Committee on Transportation and Infrastructure in the House and 
the Committee on Homeland Security and Governmental Affairs in 
the Senate.

Sec. 3. Report to Congress

    This section requires FEMA to submit to the Committee on 
Transportation and Infrastructure in the House and the 
Committee on Homeland Security and Governmental Affairs in the 
Senate a report containing a description of the internal 
processes used to make decisions regarding the distribution of 
assistance and any change made to such processes.

Sec. 4. Determination of budgetary effects

    This section ensures compliance of the bill with the 
Statutory Pay-As-You-Go Act of 2010 (Title I of P.L. 111-139).

         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, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                  DISASTER RECOVERY REFORM ACT OF 2018




           *       *       *       *       *       *       *
DIVISION D--DISASTER RECOVERY REFORM

           *       *       *       *       *       *       *


SEC. 1216. FLEXIBILITY.

  (a) Waiver Authority.--
          (1) Definition.--In this subsection, the term 
        ``covered assistance'' means assistance provided--
                  (A) under section 408 of the Robert T. 
                Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5174); and
                  (B) in relation to 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, 5191) on or 
                after October 28, 2012.
          (2) Authority.--Notwithstanding section 3716(e) of 
        title 31, United States Code, the Administrator--
                  [(A) subject to subparagraph (B), may waive a 
                debt owed to the United States related to 
                covered assistance provided to an individual or 
                household if--
                          [(i) the covered assistance was 
                        distributed based on an error by the 
                        Agency;
                          [(ii) there was no fault on behalf of 
                        the debtor; and
                          [(iii) the collection of the debt 
                        would be against equity and good 
                        conscience; and]
                  (A) except as provided in subparagraph (B), 
                shall--
                          (i) waive a debt owed to the United 
                        States related to covered assistance 
                        provided to an individual or household 
                        if the covered assistance was 
                        distributed based on an error by the 
                        Agency and such debt shall be construed 
                        as a hardship; and
                          (ii) waive a debt owed to the United 
                        States related to covered assistance 
                        provided to an individual or household 
                        if such assistance is subject to a 
                        claim or legal action, including in 
                        accordance with section 317 of the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 
                        5160); and
                  (B) may not waive a debt under subparagraph 
                (A) if the debt involves fraud, the 
                presentation of a false claim, or 
                misrepresentation by the debtor or any party 
                having an interest in the claim.
          (3) Monitoring of covered assistance distributed 
        based on error.--
                  (A) In general.--The Inspector General of the 
                Department of Homeland Security shall monitor 
                the distribution of covered assistance to 
                individuals and households to determine the 
                percentage of such assistance distributed based 
                on an error.
                  (B)  [Removal of] Report on waiver authority 
                based on excessive error rate.--If the 
                Inspector General of the Department of Homeland 
                Security determines, with respect to any 12-
                month period, that the amount of covered 
                assistance distributed based on an error by the 
                Agency exceeds 4 percent of the total amount of 
                covered assistance distributed--
                          (i) the Inspector General shall 
                        notify the Administrator and publish 
                        the determination in the Federal 
                        Register; and
                          (ii) with respect to any major 
                        disaster or emergency declared by the 
                        President under section 401 or section 
                        501, respectively, of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5170; 42 
                        U.S.C. 5191) after the date on which 
                        the determination is published under 
                        subparagraph (A), [the authority of the 
                        Administrator to waive debt under 
                        paragraph (2) shall no longer be 
                        effective] the Administrator shall 
                        report to the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Homeland Security and 
                        Governmental Affairs of the Senate 
                        actions that the Administrator will 
                        take to reduce the error rate.
  (b) Recoupment of Certain Assistance Prohibited.--
          (1) In general.--Notwithstanding section 3716(e) of 
        title 31, United States Code, and unless there is 
        evidence of civil or criminal fraud, the Agency may not 
        take any action to recoup covered assistance from the 
        recipient of such assistance if the receipt of such 
        assistance occurred on a date that is more than 3 years 
        before the date on which the Agency first provides to 
        the recipient written notification of an intent to 
        recoup.
          (2) Covered assistance defined.--In this subsection, 
        the term ``covered assistance'' means assistance 
        provided--
                  (A) under section 408 of the Robert T. 
                Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5174); and
                  (B) in relation to a major disaster or 
                emergency declared by the President under 
                section 401 or 501, respectively, of such Act 
                (42 U.S.C. 5170; 42 U.S.C. 5191) on or after 
                January 1, 2012.
  (c) Statute of Limitations.--
          (1) In general.--Section 705 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5205) is amended--
                  (A) in subsection (a)(1)--
                          (i) by striking ``Except'' and 
                        inserting ``Notwithstanding section 
                        3716(e) of title 31, United States 
                        Code, and except''; and
                          (ii) by striking ``report for the 
                        disaster or emergency'' and inserting 
                        ``report for project completion as 
                        certified by the grantee''; and
                  (B) in subsection (b)--
                          (i) in paragraph (1) by striking 
                        ``report for the disaster or 
                        emergency'' and inserting ``report for 
                        project completion as certified by the 
                        grantee''; and
                          (ii) in paragraph (3) by inserting 
                        ``for project completion as certified 
                        by the grantee'' after ``final 
                        expenditure report''.
          (2) Applicability.--
                  (A) In general.--With respect to disaster or 
                emergency assistance provided to a State or 
                local government on or after January 1, 2004--
                          (i) no administrative action may be 
                        taken to recover a payment of such 
                        assistance after the date of enactment 
                        of this Act if the action is prohibited 
                        under section 705(a)(1) of the Robert 
                        T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 
                        5205(a)(1)), as amended by paragraph 
                        (1); and
                          (ii) any administrative action to 
                        recover a payment of such assistance 
                        that is pending on such date of 
                        enactment shall be terminated if the 
                        action is prohibited under section 
                        705(a)(1) of that Act, as amended by 
                        paragraph (1).
                  (B) Limitation.--This section, including the 
                amendments made by this section, may not be 
                construed to invalidate or otherwise affect any 
                administration action completed before the date 
                of enactment of this Act.

           *       *       *       *       *       *       *