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 the disaster or emergency.
(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 chapter if—
(1)the payment was authorized by an approved agreement specifying the costs;
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 the disaster or emergency.
(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 chapter if—
(1)the payment was authorized by an approved agreement specifying the costs;
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.
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The most recent Classification Table update that we have noticed was Tuesday, May 21, 2013
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42 USC
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