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S. 3407: Fairness in Disaster Relief Act


The text of the bill below is as of Mar 5, 2020 (Introduced).


II

116th CONGRESS

2d Session

S. 3407

IN THE SENATE OF THE UNITED STATES

March 5, 2020

(for himself and Mr. Scott of Florida) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide for the authority to reimburse local governments for interest expenses, and for other purposes.

1.

Short title

This Act may be cited as the Fairness in Disaster Relief Act.

2.

Reimbursement of interest payments related to public assistance

Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end the following:

431.

Reimbursement of interest payments related to public assistance

(a)

In general

The President may provide financial assistance to a local government as reimbursement for qualifying interest.

(b)

Definitions

In this section, the following definitions apply:

(1)

Prime rate

The term prime rate means the average predominant prime rate quoted by commercial banks to large businesses, as determined by the Board of Governors of the Federal Reserve System.

(2)

Qualifying interest

The term qualifying interest means, with respect to a qualifying loan, the lesser of—

(A)

the actual interest paid to a lender for such qualifying loan; and

(B)

the interest that would have been paid to a lender if such qualifying loan had an interest rate equal to the prime rate most recently published on the Federal Reserve Statistical Release on selected interest rates.

(3)

Qualifying loan

The term qualifying loan means a loan—

(A)

obtained by a local government; and

(B)

of which not less than 90 percent of the proceeds are used to fund activities for which such local government receives assistance under this Act after the date on which such loan is disbursed.

.