Present law provides that it is the intent of the general assembly that funds to prepare for and meet emergencies must always be available, and that the first recourse is to annually fund a state emergency management agency. If the governor finds that the demands placed upon these funds in coping with a particular disaster are unreasonably great, the governor may, as otherwise provided by law, make funds available by transferring and expending moneys appropriated for other purposes or out of any unappropriated surplus funds. Whenever any person, firm, or corporation offers to the state or to any political subdivision thereof services, equipment, supplies, materials, or funds by way of gift, grant, loan or other agreement for emergency management, present law authorizes the state, acting through the agency, or such political subdivision, acting through its governing body or a local emergency management agency, to accept such offer. Upon such acceptance, the agency or the presiding officer of the governing body may authorize receipt on behalf of the state or such political subdivision, subject to the terms of the offer. Present law clarifies that nothing in the provisions above limit the authority of the governor to apply for, administer, and expend any grants, gifts, or payments in aid of emergency prevention, mitigation, preparedness, response, or recovery. RIGHT TO INSPECT AND AUDIT Present law authorizes the state to, at reasonable times, and subject to regulation of the procurement commission, inspect the part of the plant or place of business of a contractor or any subcontractor that is related to the performance of any contract awarded or to be awarded by the state. Present law also authorizes the state to, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data to the extent that such books and records relate to such cost or pricing data. Any person who receives a contract, change order, or contract modification for which cost or pricing data are required, must maintain such books and records that relate to such cost or pricing data for five years from the date of final payment under the contract, unless a shorter period is otherwise authorized in writing. Present law provides that the state is entitled to audit the books and records of a contractor or any subcontractor under any contract or subcontract other than a firm fixed-price contract, to the extent that such books and records relate to the performance of such contract or subcontract. Such books and records must be maintained by the contractor for a period of five years from the date of final payment under the prime contract and by the subcontractor for a period of five years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing. All contracts after July 1, 2024, shall include a provision with this statutory requirement and the provision cannot be amended or removed without the written consent of the comptroller of the treasury. This bill clarifies that disaster grants administered by the agency are exempt from the requirements of public purchasing law, related to procurement, except that (i) the present law described above applies to such disaster grants and (ii) the agency must establish procedures to monitor recipient and subrecipient compliance with disaster response and disaster grant terms and conditions. As used in this bill, a "recipient" means a person or entity that directly receives a disaster grant from a federal or state agency to carry out an activity of a disaster response and recovery assistance program, and a "subrecipient" means a person or entity that receives a disaster grant from a recipient to carry out a disaster response and recovery assistance program.

Statutes affected:
Introduced: 58-2-109(c), 58-2-109