Ariz. Admin. Code § 8-2-313

Current through Register Vol. 30, No. 23, June 7, 2024

Section R8-2-313 - Allowable Claims Against the Governor's Emergency Fund

A. An executed Project Worksheet approves potential Reimbursement only to maximum of the dollar amount shown therein, which amount may not be increased except in a written document executed by both the Applicant and the Division or as a result of an adjustment after audit. The Division may allow expenditures from the Governor's Emergency Fund for an Eligible Cost arising from a State-Level Emergency only if all of the following conditions are met, unless the Director determines otherwise:

1. The Applicant is legally and/or financially responsible for providing the related Eligible Work;

2. If the Eligible Work involves repairs to a damaged Facility, the Facility must be owned by the Applicant at the time of the Incident, or the Applicant is obligated at the time of the Incident under a lease or other contract to perform or pay the cost of the Eligible Work;

3. The amount claimed is a direct result of Eligible Work related to the State-Level Emergency;

4. The amount claimed is authorized under R8-2-313(B) or R8-2-313(D);

5. The related Project or projects comply with all local, State, and Federal environmental and historic preservation, building, safety, and other regulatory codes and standards; and

6. The Applicant does not owe any overpayment under R8-2-318 for any past or present State Level Emergency (whether open or closed) that has not been timely refunded to the Division. Alternatively, the Director may reduce the amount of any Reimbursement to the Applicant from the Governor's Emergency Fund by the amount of any outstanding overpayment under R8-2-318 that has not been timely refunded by the Applicant to the Division.

B. The Division may, in the Division's sole discretion, allow the following to be Reimbursed from the Governor's Emergency Fund if the conditions set forth in R8-2-313(A) are met:

1. For emergency or temporary work, overtime wages and benefits of the Applicant's hourly Budgeted Employees directly engaged in Eligible Work, which must be in accordance with the Applicant's published policies for overtime, premium pay, and compensatory time costs. No such costs may be Reimbursed to the extent the Applicant's policy makes such salaries, wages or benefits:

a. Contingent on State or Federal funding;

b. Applicable only if there has been a State or Federal disaster declaration; or

c. Subject to any discretionary criteria;

2. For permanent work, salaries, or wages (including overtime for hourly Budgeted Employees only) and benefits of the Applicant's Budgeted Employees directly engaged in Eligible Work, which must be in accordance with the Applicant's published policies for overtime, premium pay, and compensatory time costs. No such costs may be Reimbursed to the extent the Applicant's policy makes such salaries, wages or benefits:

a. Contingent on State or Federal funding;

b. Applicable only if there has been a State or Federal disaster declaration; or

c. Subject to any discretionary criteria;

3. Wages (including overtime) and benefits of hourly Non-Budgeted Employees of the Applicant directly engaged in any Eligible Work, which must be in accordance with the Applicant's published policies for overtime, premium pay, and compensatory time costs. No such costs may be Reimbursed to the extent the Applicant's policy makes such salaries, wages or benefits:

a. Contingent on State or Federal funding;

b. Applicable only if there has been a State or Federal disaster declaration; or

c. Subject to any discretionary criteria;

4. Communication costs directly related to the State-Level Emergency incurred by the Applicant;

5. Travel and per diem costs directly related to the State-Level Emergency for Applicant employees and employees of other State Agencies or Political Subdivisions (but not employees of private non-profits, non-governmental agencies, or companies, or private individuals) performing the Eligible Work under a mutual aid agreement, subject to the Applicant's standard, non-emergency limitations for travel and per diem expenses for its own employees, or the State of Arizona's Travel Policy requirements, whichever provides for lesser Reimbursement;

6. Materials and supplies consumed by an Applicant in performing Eligible Work, except those listed under R8-2-313(C)(2);

7. Operating costs for the Applicant's equipment, using rates established by the Applicant, the Division, or FEMA, whichever is less. Rental of commercial or privately owned equipment by the Applicant may be allowed only at documented contractual rates, prorated for the time that such equipment was in actual use performing Eligible Work (which shall not include any "stand by" time), or at the contracted flat rate, whichever is less;

8. All procurement contracts must adhere to all local, State and Federal (if a Federal declaration applies) procurement requirements, whichever are the most restrictive, including but not limited to the Arizona Procurement Code, A.R.S. Title 41, Chapter 23 and A.A.C. Title 2, Chapter 7. "Emergency Procurement" is defined in A.A.C. R2-7-E302, and all Emergency Procurements must comply with A.A.C. R2-7-E302 and all other local, State or Federal (if a Federal declaration applies) procurement requirements, whichever are the most restrictive.

9. Subject to all other requirements of R8-2-313(B), Eligible Work performed under a mutual aid agreement between an Applicant receiving the aid and an entity providing the aid, is eligible for Reimbursement upon application by the Applicant. The entity providing the aid shall submit documented costs to the Applicant. Only the Applicant is eligible to submit for a cost-share Reimbursement from the Governor's Emergency Fund. Costs incurred by the entity providing the aid and related to Eligible Work are to be paid to the providing entity by the Applicant in compliance with the terms of the mutual aid agreement.

10. Prison labor, including amounts paid to prisoners in accordance with established rates, amounts paid to the required number of guards (with the required number of guards to be determined by the incarcerating entity's rules on the required guard/prisoner ratio), and the costs of transporting and feeding prisoners and guards.

11. Snow Removal: A Political Subdivision may submit an Application for Assistance if the Application establishes the existence of all of the following requirements: If an Incident resulting from a winter storm event results in a Declaration and also pushes the Applicant's cumulative snowfall total for a winter season above the average of the last five seasons' annual snowfall, then the Applicant may be eligible for assistance, provided that responding to the Incident is beyond the Applicant's ability to recover without State assistance; see R8-2-303(C). The data source for snowfall measurement will be the National Weather Service, and the data source for historical snowfall will be the National Climatic Data Center.

C. The Division shall not allow the following to be Reimbursed from the Governor's Emergency Fund:

1. Salaries or wages and benefits of elected or appointed officials responsible for directing governmental activities;

2. Administrative Costs; purchase of office supplies; purchase or rental of office equipment; rental of administrative office space; depreciation; insurance premiums; storage costs; maintenance costs; lost revenue; and all overhead costs;

3. Contributions toward the purchase of equipment by the Applicant for use in performing Eligible Work. The Division may approve total or partial Reimbursement of such contributions in advance and in writing, but only if the necessary equipment is not available (without purchase) from Federal, State, or local sources, and if the contribution does not exceed the cost of renting the item for the period of actual use in performing Eligible Work (not to include "stand by" time) at prevailing local rates. At the Division's discretion, the total or partial Reimbursement of any such contribution from the Governor's Emergency Fund will be reduced by the fair market value of the item when the item is no longer needed for the State-Level Emergency in question;

4. Any donated resources, including but not limited to labor, equipment, and materials;

5. Repairs and fuel for privately owned or rented equipment, except where the rental agreement provides that the Applicant will be responsible for repairs and/or fuel in addition to the rental fee;

6. Work performed and/or materials provided:

a. Under agreement between a State Agency or Political Subdivision and a Federal agency, and

b. Paid for by Federal funds;

7. Costs incurred under contracts based on cost plus a percentage of costs;

8. Lodging costs associated with prison labor, including lodging costs for both the prisoners and their guards;

9. Any cost conditioned upon the availability of State or Federal funds;

10. Any cost incurred as a result of personnel or equipment "standing by" to perform Eligible Work, but not actually performing Eligible Work. Exception: Eligible Costs to provide life safety assistance where an immediate and direct threat to life safety is reasonably anticipated; and

11. Any costs incurred due to deterioration, deferred maintenance, the Applicant's failure to take measures to protect a Facility from further damage, or negligence.

D. To submit a claim for a cost that otherwise is not allowable under the terms of R8-2-313(B) but that is not barred under the terms of R8-2-313(C), an Applicant shall submit a written request to the Director for an exception, which request must be approved by the Director. The Director may, in the Director's sole discretion, grant a request for an exception if the Applicant:

1. Explains the nature of the exception requested;

2. Justifies why it is needed; and

3. The Applicant otherwise satisfies all other requirements of A.A.C. Title 8, Chapter 2, Article 3. The Division shall inform the Applicant in writing of the decision to grant or deny the request for an exception.

E. Except as allowed under R8-2-313(A)(5) and R8-2-314(A) and (B), when a Facility damaged as a result of a State-Level Emergency is repaired or replaced, the Director shall allow only the costs required to return the Facility to the condition it was before the State Level Emergency.

Ariz. Admin. Code § R8-2-313

Adopted effective September 18, 1996 (Supp. 96-3). Amended by exempt rulemaking at 19 A.A.R. 4216, effective December 1, 2013. Amended by final exempt rulemaking at 29 A.A.R. 238, effective 12/15/2022.