Sec. 6. Management costs pilot
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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). 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: 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.
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. 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. The President, acting through the Administrator, shall— 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 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. 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. 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. 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 . In carrying out this section, the Administrator shall not be subject to the requirements of— section 553 of title 5, United States Code; chapter 6 of title 5, United States Code; or subchapter I of chapter 35 of title 44, United States Code.
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