H.R. 4426: Studying Mitigation And Reporting Transparently Act

The bill, known as the "Studying Mitigation And Reporting Transparently Act" or the "SMART Act," directs the Administrator of the Federal Emergency Management Agency (FEMA) to conduct a comprehensive study regarding hazard mitigation programs funded by FEMA across the United States. The primary focus of this study is to evaluate the effectiveness, long-term cost savings, and strategic impact of these federal-funded hazard mitigation activities. Below are the key provisions outlined in the bill:

Objectives of the Study

The study aims to assess how FEMA’s hazard mitigation programs:

• Reduce spending for disaster response and recovery at both federal and non-federal levels;
• Enhance community preparedness for natural hazards;
• Improve access to affordable hazard-related insurance;
• Support the continuity of critical services and infrastructure during disasters;
• Generate long-term cost savings and measurable returns on investment.

Methodology

The study will employ various methods, including:

• Quantitative and qualitative analysis of avoided losses;
• Evaluating the effect of hazard mitigation on risk ratings, insurance assessments, and insurance penetration at the community level;
• Case studies from different geographic areas and types of hazards;
• Examinations of how mitigation activities can reduce federal disaster response and recovery costs.

Data Sources

To ensure a comprehensive analysis, the study will use data from:

• Federal, State, local, and Tribal agencies;
• Independent third-party assessments and academic studies;
• Internal records related to programs and disaster recovery.

Consultation

While conducting the study, the Administrator may seek input from various stakeholders, including:

• The Government Accountability Office;
• The National Institute of Standards and Technology;
• State, local, Tribal, and territorial governments;
• Relevant academic and research institutions.

Reporting Requirements

Within 18 months of the bill's enactment, and annually thereafter, FEMA must submit a report to several congressional committees that includes:

• The findings from the study;
• Recommendations for improving the design, targeting, and oversight of mitigation programs;
• Recommendations for legislative and administrative actions.

Public Availability and Ongoing Review

The results of the initial study must be made publicly accessible in a user-friendly format on FEMA’s website within two years after the bill's enactment. This publicly available data will include:

• Summarized findings and datasets, ensuring national security and privacy concerns are addressed;
• Visualizations and maps that illustrate the outcomes of hazard mitigation efforts;
• Clear explanations regarding methodology, data sources, and any limitations of the study.

The study will be refreshed annually, incorporating the latest data, methodological updates, and feedback from stakeholders. Each updated report must be available to the public on FEMA’s website within 60 days of its submission to Congress.

Relevant Companies

• EMR (Emerson Electric Co.): A potential impact could relate to their business in providing automation solutions and technology that can enhance disaster preparedness and resilience for infrastructure.
• BLK (BlackRock, Inc.): As a leading asset management firm, changes in hazard mitigation might influence investment strategies, especially in uninsured risk sectors.