Basic Act on Disaster Management

Except as otherwise specified by laws and regulations or when a special action is undertaken within the limits of the budget, expenses for disaster prevention and emergency disaster control measures and other expenses for the implementation of this Act are to be borne by parties responsible for its implementation.

A local government to which a head of a local government, etc. who has received support pursuant to the provisions of Article 67, paragraph (1), Article 68, Article 74, paragraph (1), or Article 74-4, paragraph (1) from the head of a designated administrative organ, the head of a designated local administrative organ, or the head, a committee, or a committee member of another local government (hereinafter referred to as "head of a local government, etc." in this Article) belongs must bear the expenses incurred for that support.

In a case referred to in the preceding paragraph, if the local government to which the head of a local government, etc., who has received support belongs does not have time to pay the expenses, the local government may ask the State or the local government to which the other head of a local government, etc., who has rendered support belongs to temporarily cover the expenses on its behalf.

Of the expenses incurred for emergency measures which the mayor of a municipality has implemented or expenses incurred for support that the mayor has rendered based on instructions from the prefectural governor under Article 72, paragraph (1), as provided for by Cabinet Order, the portion which is found difficult or inappropriate to assess on the municipality under the control of the mayor who has received the instructions or support and which is provided for by Cabinet Order is to be borne in whole or in part by the prefecture under the control of the governor concerned, except for the expenses which are to be borne partly by the State pursuant to the provisions of the following Article.

In the case referred to in the preceding paragraph, the prefecture may ask the relevant municipality to temporarily cover the expenses under the preceding paragraph on its behalf.

With respect to expenses required for emergency disaster control measures, as provided for separately by laws and regulations or within the limits of its budget, the State may bear or subsidize the expenses, in whole or in part.

Beyond what is provided for in the preceding Article, of the expenses incurred for emergency measures which the head of a local government has implemented based on instructions from the chairperson of the specified disaster management headquarters under Article 23-7, paragraph (2), the chairperson of the extraordinary disaster management headquarters under Article 28, paragraph (2), or from the chairperson of the headquarters for emergency disaster control under Article 28-6, paragraph (2), as provided for by Cabinet Order, the portion which is found difficult or inappropriate to assess on the local government and which is provided for by Cabinet Order may be subsidized in whole or in part by the State.

With respect to expenses required for disaster recovery projects and other projects undertaken in relation to a disaster, as provided for separately by laws and regulations or within the limits of its budget, the State may bear or subsidize them in whole or in part.

In the event of a disaster that is extremely severe (hereinafter referred to as "disaster of extreme severity"), as provided for separately by law, the government is to take action so that emergency measures and disaster recovery efforts may proceed speedily and appropriately, and at the same time, enforce necessary policies for the purposes of making equitable the burden of expenses on the local government, etc., whose area has sustained a disaster of extreme severity and arousing enthusiasm for rehabilitation in the disaster victims.

With respect to the law prescribed in the preceding Article, insofar as practicable, enacting such a law at the time of each disaster of extreme severity should be avoided, also, the law must be designed to rationalize the system concerning the burden of the State consequent upon disaster, and enable the measures against a disaster of extreme severity described in the preceding Article to be carried out smoothly.

The law prescribed in Article 97 specifies the matters set forth in each of the following items:

standards for the cases where special financial support and subsidies are necessary as a measure for a disaster of extreme severity;

special financial support by the State to a local government in order to realize appropriate implementation of recovery projects for a disaster of extreme severity and other projects undertaken in relation to the disaster;

special subsidies for victims resulting from the occurrence of a disaster of extreme severity.

In order to deal with a disaster without adversely affecting the smooth management of national finances in the event of a disaster, the government must endeavor to take necessary financial measures.

In order to achieve the objectives under the preceding paragraph, the government is to exercise sufficient consideration with respect to the appropriation of reserve funds and action for bearing deficits in the Treasury (referring to the action for bearing deficits in the Treasury prescribed in Article 15, paragraph (2) of the Public Finance Act (Act No. 34 of 1947)) and other measures.

As provided for separately by laws and regulations, a local government must establish a disaster control fund to be allocated for covering the emergency expenses for disaster control measures.

In the cases set forth in each of the following items, a local government provided for by Cabinet Order may issue local government bonds as a financial resource exclusively for the fiscal year of the occurrence of a disaster as provided for by Cabinet Order and any subsequent fiscal years provided for by Cabinet Order, notwithstanding the provisions of Article 5 of the Local Government Finances Act (Act No. 109 of 1948):

to cover a deficit in fiscal revenue arising as a result of reductions or releases of local taxes, royalties, fees, and other collections as provided for by Order of the Ministry of Internal Affairs and Communications in relation to the disaster, in the amount considered commensurate with the degree and scope of damage wrought by the disaster;

to provide financial resources for the portion of expenses borne by a local government out of the expenses normally required for disaster prevention, emergency disaster control measures, or disaster recovery efforts provided for by Order of the Ministry of Internal Affairs and Communications.

Insofar as its financial situation allows, the State is to accept local government bonds provided for in the preceding paragraph using fiscal loan funds.

When the relevant local government bonds have been accepted with fiscal loan funds, the fixed interest rate, method of redemption, and other necessary matters relating to local government bonds provided for under paragraph (1) are prescribed by Cabinet Order.

When the portion that is not accompanied by a State subsidy out of expenses for projects to recover from a disaster of extreme severity is found too excessive to be borne by a local government, as provided for separately by law, the State and local governments may take special measures to provide financial resources for expenses of the disaster recovery projects.

When a disaster provided for by Cabinet Order has occurred, financial institutions related to the government and other equivalent financial institutions provided for by Cabinet Order provide special loans in connection with the disaster, and endeavor to extend the term of redemption or the period of deferment, convert old loans to new ones, lower interest rates if necessary, and take other measures pertinent to the circumstances.