CLOSEOUT INCENTIVES.

SEC. 1221. CLOSEOUT INCENTIVES. (a) Facilitating Closeout.—Section 705 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5205) is amended by adding at the end the following: “(d) Facilitating Closeout.— “(1) Incentives.—The Administrator of the Federal Emergency Management Agency may develop incentives and penalties that encourage State, local, or Indian tribal governments to close out expenditures and activities on a timely basis related to disaster or emergency assistance. “(2) Agency requirements.—The Federal Emergency Management Agency shall, consistent with applicable regulations and required procedures, meet its responsibilities to improve closeout practices and reduce the time to close disaster program awards.” . (b) [42 U.S.C. 5205 note] Regulations.—The Administrator shall issue regulations to implement the amendment made by this section.