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Amends the Robert T. Stafford Disaster Relielf and Emergency Assistance Act to: (1) specify procedures for the conduct of preliminary disaster damage assessments; and (2) increase the associated penalties for fraud. Directs the President to: (1) investigate vigorously any allegations and instances of fraud, including fraud relating to the handling and approval of claims for federal emergency assistance; and (2) refer to the Attorney General appropriate allegations, instances, and investigation results. Requires the Attorney General to: (1) give serious consideration to any allegation or instance of fraud and begin an investigation into it not later than 10 days after the receipt of such a referral; and (2) report on investigation progress and results to the Secretary of Homeland Security within 45 days. Requires the Director of the Federal Emergency Management Agency to propose new inspection procedures that: (1) more accurately identify disaster-related losses of household items for which applicants should be compensated; (2) modify guidelines for individual and housing inspections to require inspectors to specify any item that was not available for inspection; and (3) develop eligibility criteria for funding vehicle damage, taking into consideration damage to a vehicle sustained as a result of a disaster.

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