To provide for homeland security block grants.

January 7, 2003

Mrs. CLINTON (for herself, Mr. Durbin, Mr. Corzine, Mrs. Boxer, Mr. Schumer, Mrs. Feinstein, and Ms. Stabenow) introduced the following bill; which was read twice and referred to the Committee on Governmental Affairs

To provide for homeland security block grants.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Homeland Security Block Grant Act of 2003'.

(b) TABLE OF CONTENTS-

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

Sec. 4. Grants to States, units of general local government and Indian tribes; authorizations.

Sec. 5. Statement of activities and review.

Sec. 6. Activities eligible for assistance.

Sec. 7. Allocation and distribution of funds.

Sec. 8. State and regional planning communication systems.

Sec. 9. Nondiscrimination in programs and activities.

Sec. 10. Remedies for noncompliance with requirements.

Sec. 11. Reporting requirements.

Sec. 12. Consultation by Secretary.

Sec. 13. Interstate agreements or compacts; purposes.

Sec. 14. Matching requirements; suspension of requirements for economically distressed areas.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) In the wake of the September 11, 2001, terrorist attacks on our country, communities all across American now find themselves on the front lines in the war against terrorism on United States soil.

(2) We recognize that these communities will be forced to shoulder a significant portion of the burden that goes along with that responsibility. We believe that local governments should not have to bear that responsibility alone.

(3) Our homeland defense will only be as strong as the weakest link at the State and local level. By providing our communities with the resources and tools they need to bolster emergency response efforts and provide for other emergency response initiatives, we will have a better-prepared home front and a stronger America.

SEC. 3. DEFINITIONS.

(a) DEFINITIONS- In this Act:

(1) SECRETARY- The term `Secretary' means the Secretary of the Department of Homeland Security.

(2) CITY- The term `city' means--

(A) any unit of general local government that is classified as a municipality by the United States Bureau of the Census; or

(B) any other unit of general local government that is a town or township and which, in the determination of the Secretary--

(i) possesses powers and performs functions comparable to those associated with municipalities;

(ii) is closely settled; and

(iii) contains within its boundaries no incorporated places as defined by the United States Bureau of the Census that have not entered into cooperation agreements with such town or township to undertake or to assist in the performance of homeland security objectives.

(3) FEDERAL GRANT-IN-AID PROGRAM- The term `Federal grant-in-aid program' means a program of Federal financial assistance other than loans and other than the assistance provided by this Act.

(4) INDIAN TRIBE- The term `Indian tribe' means any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native Village, of the United States, which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Public Law 93-638) or was considered an eligible recipient under chapter 67 of title 31, United States Code, prior to the repeal of such chapter.

(5) METROPOLITAN AREA- The term `metropolitan area' means a standard metropolitan statistical area as established by the Office of Management and Budget.

(6) METROPOLITAN CITY-

(A) IN GENERAL- The term `metropolitan city' means--

(i) a city within a metropolitan area that is the central city of such area, as defined and used by the Office of Management and Budget; or

(ii) any other city, within a metropolitan area, which has a population of not less than 50,000.

(B) PERIOD OF CLASSIFICATION- Any city that was classified as a metropolitan city for at least 2 years pursuant to subparagraph (A) shall remain classified as a metropolitan city. Any unit of general local government that becomes eligible to be classified as a metropolitan city, and was not classified as a metropolitan city in the immediately preceding fiscal year, may, upon submission of written notification to the Secretary, defer its classification as a metropolitan city for all purposes under this Act, if it elects to have its population included in an urban county under subsection (d).

(C) ELECTION BY A CITY- Notwithstanding subparagraph (B), a city may elect not to retain its classification as a metropolitan city. Any unit of general local government that was classified as a metropolitan city in any year, may, upon submission of written notification to the Secretary, relinquish such classification for all purposes under this Act if it elects to have its population included with the population of a county for purposes of qualifying for assistance (for such following fiscal year) under section 5(e) as an urban county.

(7) NONQUALIFYING COMMUNITY- The term `nonqualifying community' means an area that is not a metropolitan city or part of an urban county and does not include Indian tribes.

(8) POPULATION- The term `population' means total resident population based on data compiled by the United States Bureau of the Census and referable to the same point or period of time.

(9) STATE- The term `State' means any State of the United States, or any instrumentality thereof approved by the Governor; and the Commonwealth of Puerto Rico, the United States Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands.

(10) UNIT OF GENERAL LOCAL GOVERNMENT- The term `unit of general local government' means any city, county, town, township, parish, village, or other general purpose political subdivision of a State; a combination of such political subdivisions is recognized by the Secretary; and the District of Columbia.

(11) URBAN COUNTY- The term `urban county' means any county within a metropolitan area.

(b) BASIS AND MODIFICATION OF DEFINITIONS- Where appropriate, the definitions in subsection (a) shall be based, with respect to any fiscal year, on the most recent data compiled by the United States Bureau of the Census and the latest published reports of the Office of Management and Budget available ninety days prior to the beginning of such fiscal year. The Secretary may by regulation change or otherwise modify the meaning of the terms defined in subsection (a) in order to reflect any technical change or modification thereof made subsequent to such date by the United States Bureau of the Census or the Office of Management and Budget.

(c) DESIGNATION OF PUBLIC AGENCIES- One or more public agencies, including existing local public agencies, may be designated by the chief executive officer of a State or a unit of general local government to undertake activities assisted under this Act.

(d) LOCAL GOVERNMENTS, INCLUSION IN URBAN COUNTY POPULATION- With respect to program years beginning with the program year for which grants are made available from amounts appropriated for fiscal year 2002 under section 4, the population of any unit of general local government which is included in that of an urban county as provided in subsection (a)(11) shall be included in the population of such urban county for three program years beginning with the program year in which its population was first so included and shall not otherwise be eligible for a grant as a separate entity, unless the urban county does not receive a grant for any year during such three-year period.

(e) URBAN COUNTY- Any county seeking qualification as an urban county, including any urban county seeking to continue such qualification, shall notify, as provided in this subsection, each unit of general local government, which is included therein and is eligible to elect to have its population excluded from that of an urban county, of its opportunity to make such an election. Such notification shall, at a time and in a manner prescribed by the Secretary, be provided so as to provide a reasonable period for response prior to the period for which such qualification is sought. The population of any unit of general local government which is provided such notification and which does not inform, at a time and in a manner prescribed by the Secretary, the county of its election to exclude its population from that of the county shall, if the county qualifies as an urban county, be included in the population of such urban county as provided in subsection (d).

SEC. 4. GRANTS TO STATES, UNITS OF GENERAL LOCAL GOVERNMENT AND INDIAN TRIBES; AUTHORIZATIONS.

(a) AUTHORIZATION- The Secretary is authorized to make grants to States, units of general local government, and Indian tribes to carry out activities in accordance with the provisions of this Act.

(b) AUTHORIZATION OF APPROPRIATIONS-

(1) IN GENERAL- There are authorized to be appropriated $3,000,000,000 for each of fiscal years 2003 through 2006, and such sums as may be necessary thereafter, for the purpose of carrying out the provisions under section 7.

(2) STATE, REGIONAL, AND LOCAL PLANNING, TRAINING, AND COMMUNICATION SYSTEMS- There are authorized to be appropriated $500,000,000 for each of fiscal years 2003 through 2006, and such sums as may be necessary thereafter, for the purpose of carrying out the provisions under section 8.

SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW.

(a) APPLICATION-

(1) IN GENERAL- Prior to the receipt in any fiscal year of a grant under section 7(b) by any metropolitan city or urban county, section 7(i) by any State, or section 7(i)(3) by any unit of general local government, the grantee shall--

(i) indicate its interest in receiving funds by preparing a statement of homeland security objectives and projected use of funds; and

(ii) provide the Secretary with the certifications required under paragraph (2) and, where appropriate, subsection (b).

(2) GRANTEE STATEMENT-

(A) CONTENTS-

(i) LOCAL GOVERNMENT- In the case of metropolitan cities or urban counties receiving grants under section 7(b) and units of general local government receiving grants under section 7(i)(3), the statement of projected use of funds shall consist of proposed homeland security activities.

(ii) STATES- In the case of States receiving grants under section 7(d), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government.

(B) CONSULTATION- In preparing the statement, the grantee shall consult with appropriate law enforcement agencies and emergency response authorities.

(C) FINAL STATEMENT- A copy of the final statement and the certifications required under paragraph (3) and, where appropriate, subsection (b) shall be furnished to the Secretary and the Attorney General.

(D) MODIFICATIONS- Any final statement of activities may be modified or amended from time to time by the grantee in accordance with the same procedures required in this paragraph for the preparation and submission of such statement.

(3) CERTIFICATION OF ENUMERATED CRITERIA BY GRANTEE TO SECRETARY- Any grant under section 7 shall be made only if the grantee certifies to the satisfaction of the Secretary that--

(A) it has developed a homeland security plan pursuant to section 6(a)(8) that identifies both short- and long-term homeland security needs that have been developed in accordance with the primary objective and requirements of this Act; and

(B) the grantee will comply with the other provisions of this Act and with other applicable laws.

(b) SUBMISSION OF ANNUAL PERFORMANCE REPORTS, AUDITS AND ADJUSTMENTS-

(1) IN GENERAL- Each grantee shall submit to the Secretary, at a time determined by the Secretary, a performance and evaluation report concerning the use of funds made available under section 7, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee's statement under subsection (a)(2).

(2) UNIFORM REPORTING REQUIREMENTS-

(A) RECOMMENDATIONS BY NATIONAL ASSOCIATIONS- The Secretary shall encourage and assist national associations of grantees eligible under section 7, national associations of States, and national associations of units of general local government in nonqualifying areas to develop and recommend to the Secretary, within 1 year after the effective date of this Act, uniform recordkeeping, performance reporting, evaluation reporting, and auditing requirements for such grantees, States, and units of general local government, respectively.

(B) ESTABLISHMENT OF UNIFORM REPORTING REQUIREMENTS- Based on the Secretary's approval of the recommendations submitted pursuant to subparagraph (A), the Secretary shall establish uniform reporting requirements for grantees, States, and units of general local government.

(3) REVIEWS AND AUDITS- The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine--

(A) in the case of grants made under section 7(b), whether the grantee has carried out its activities and, where applicable, whether the grantee has carried out those activities and its certifications in accordance with the requirements and the primary objectives of this Act and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and

(B) in the case of grants to States made under section 7(i), whether the State has distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications in compliance with the requirements of this Act and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate to determine whether they have satisfied the applicable performance criteria described in subparagraph (A).

(4) ADJUSTMENTS- The Secretary may make appropriate adjustments in the amount of the annual grants in accordance with the Secretary's findings under this subsection. With respect to assistance made available to units of general local government under section 7(i)(3), the Secretary may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Secretary's reviews and audits under this subsection, except that funds already expended on eligible activities under this Act shall not be recaptured or deducted from future assistance to such units of general local government.

(c) AUDITS- Insofar as they relate to funds provided under this Act, the financial transactions of recipients of such funds may be audited by the General Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit.

(d) METROPOLITAN CITY AS PART OF URBAN COUNTY- In any case in which a metropolitan city is located, in whole or in part, within an urban county, the Secretary may, upon the joint request of such city and county, approve the inclusion of the metropolitan city as part of the urban county for purposes of submitting a statement under section 5 and carrying out activities under this Act.

SEC. 6. ACTIVITIES ELIGIBLE FOR ASSISTANCE.

(a) IN GENERAL- Activities assisted under this Act may include--

(1) funding additional law enforcement, fire, and emergency resources, including covering overtime expenses;

(2) purchasing and refurbishing personal protective equipment for fire, police, and emergency personnel and acquire state-of-the-art technology to improve communication and streamline efforts;

(3) improving cyber and infrastructure security by improving--

(A) security for water treatment plants, distribution systems, other water infrastructure, nuclear power plants, and other power infrastructure;

(B) security for tunnels and bridges;

(C) security for oil and gas pipelines and storage facilities; and

(D) security for chemical plants and transportation of hazardous substances;

(4) assisting Local Emergency Planning Committees so that local public agencies can design, review, and improve disaster response systems;

(5) assisting communities in coordinating their efforts and sharing information with all relevant agencies involved in responding to terrorist attacks;

(6) establishing timely notification systems that enable communities to communicate with each other when a threat emerges;

(7) improving communication systems to provide information to the public in a timely manner about the facts of any threat and the precautions the public should take; and

(8) devising a homeland security plan, including determining long-term goals and short-term objectives, evaluating the progress of the plan, and carrying out the management, coordination, and monitoring of activities necessary for effective planning implementation.

(b) COSTS COVERED- Grants received under section 7 may be used to cover any costs related to the eligible activities listed in this section that were incurred on or after September 11, 2001.

SEC. 7. ALLOCATION AND DISTRIBUTION OF FUNDS.

(a) SET-ASIDE FOR INDIAN TRIBES-

(1) IN GENERAL- For each fiscal year, of the amount appropriated for grants pursuant to section 4(b)(1) (excluding the amounts provided for use in accordance with section 6), the Secretary shall reserve 1 percent of the amount so appropriated for grants to Indian tribes.

(2) SELECTION OF INDIAN TRIBES-

(A) IN GENERAL- The Secretary shall provide for distribution of amounts under this paragraph to Indian tribes on the basis of a competition conducted pursuant to specific criteria for the selection of Indian tribes to receive such amounts.

(B) RULEMAKING- The criteria shall be contained in a regulation promulgated by the Secretary after notice and public comment.

(b) ALLOCATION TO METROPOLITAN CITIES AND URBAN COUNTIES-

(1) ALLOCATION PERCENTAGE- Of the amount remaining after allocations have been made to Indian tribes pursuant to subsection (a), 70 percent shall be allocated by the Secretary to metropolitan cities and urban counties.

(2) ENTITLEMENT- Except as otherwise specifically authorized, each metropolitan city and urban county shall be entitled to an annual grant, to the extent authorized beyond fiscal year 2006, from such allocation in an amount not exceeding its basic amount computed pursuant to this subsections (c) and (d).

(c) COMPUTATION OF AMOUNT ALLOCATED TO METROPOLITAN CITIES-

(1) COMPUTATION RATIOS- The Secretary shall determine the amount to be allocated to each metropolitan city, which shall bear the same ratio to the allocation for all metropolitan cities as the weighted average of--

(A) the population of the metropolitan city divided by the population of all metropolitan cities;

(B) the potential risk, as it pertains to chemical security, of the metropolitan city divided by the potential risk, as it pertains to chemical security, of all metropolitan cities;

(C) the proximity of the metropolitan city to the nearest operating nuclear power plant and the proximity of all metropolitan cities to the nearest operating nuclear power plant to each such city;

(D) the proximity of the metropolitan city to the nearest United States land or water port and the proximity of all metropolitan cities to the nearest United States land or water port to each such city;

(E) the proximity of the metropolitan city to the nearest international border and the proximity of all metropolitan cities to the nearest international border to each such city; and

(F) the proximity of the metropolitan city to the nearest Disaster Medical Assistance Team (referred to in this subsection as `DMAT') and the proximity of all metropolitan cities to the nearest DMAT to each such city.

(2) CLARIFICATION OF COMPUTATION RATIOS-

(A) RELATIVE WEIGHT OF FACTORS- In determining the average of the ratios under paragraph (1), the ratio involving population shall constitute 50 percent of the formula in calculating the allocation and the remaining factors shall be equally weighted.

(B) POTENTIAL RISK AS IT PERTAINS TO CHEMICAL SECURITY- If a metropolitan city is within the vulnerable zone of a worst-case chemical release, as specified in the most recent risk management plans filed with the Environmental Protection Agency or another instrument developed by the Environmental Protection Agency or the Homeland Security Department that captures the same information for the same facilities, the ratio under paragraph (1)(B) shall be 1 divided by the total number of metropolitan cities that are within such a zone.

(C) PROXIMITY AS IT PERTAINS TO NUCLEAR SECURITY- If a metropolitan city is located within 50 miles of an operating nuclear power plant, as identified by the Nuclear Regulatory Commission, the ratio under paragraph (1)(C) shall be 1 divided by the total number of metropolitan cities, not to exceed 100, which are located within 50 miles of an operating nuclear power plant.

(D) PROXIMITY AS IT PERTAINS TO PORT SECURITY- If a metropolitan city is located within 50 miles of 1 of the 100 largest United States

ports, as stated by the Department of Transportation, Bureau of Transportation Statistics, United States Port Report by All Land Modes, or within 50 miles of one of the 30 largest United States water ports by metric tons and value, as stated by the Department of Transportation, Maritime Administration, United States Foreign Waterborne Transportation Statistics, the ratio under paragraph (1)(D) shall be 1 divided by the total number of metropolitan cities that are located within 50 miles of a United States land or water port.

(E) PROXIMITY TO INTERNATIONAL BORDERS- If a metropolitan city is located within 50 miles of an international border, the ratio under paragraph (1)(E) shall be 1 divided by the total number of metropolitan cities that are located within 50 miles of an international border.

(F) PROXIMITY TO DISASTER MEDICAL ASSISTANCE TEAMS- If a metropolitan city is located within 50 miles of a DMAT, as organized by the National Disaster Medical System through the Department of Public Health, the ratio under paragraph (1)(F) shall be 1 divided by the total number of metropolitan cities that are located within 50 miles of a DMAT.

(d) COMPUTATION OF AMOUNT ALLOCATED TO URBAN COUNTIES-

(1) COMPUTATION RATIOS- The Secretary shall determine the amount to be allocated to each urban county, which shall bear the same ratio to the allocation for all urban counties as the weighted average of--

(A) the population of the urban county divided by the population of all urban counties;

(B) the potential risk, as it pertains to chemical security, of the urban county divided by the potential risk, as it pertains to chemical security, of all urban counties;

(C) the proximity of the urban county to the nearest operating nuclear power plant and the proximity of all urban counties to the nearest operating nuclear power plant to each such city;

(D) the proximity of the urban county to the nearest United States land or water port and the proximity of all urban counties to the nearest United States land or water port to each such city;

(E) the proximity of the urban county to the nearest international border and the proximity of all urban counties to the nearest international border to each such city; and

(F) the proximity of the urban county to the nearest Disaster Medical Assistance Team (referred to in this subsection as `DMAT') and the proximity of all urban counties to the nearest DMAT to each such city.

(3) CLARIFICATION OF COMPUTATION RATIOS-

(A) RELATIVE WEIGHT OF FACTORS- In determining the average of the ratios under paragraph (1), the ratio involving population shall constitute 50 percent of the formula in calculating the allocation and the remaining factors shall be equally weighted.

(B) POTENTIAL RISK AS IT PERTAINS TO CHEMICAL SECURITY- If a urban county is within the vulnerable zone of a worst-case chemical release, as specified in the most recent risk management plans filed with the Environmental Protection Agency or another instrument developed by the Environmental Protection Agency or the Homeland Security Department that captures the same information for the same facilities, the ratio under paragraph (1)(B) shall be 1 divided by the total number of urban counties that are within such a zone.

(C) PROXIMITY AS IT PERTAINS TO NUCLEAR SECURITY- If a urban county is located within 50 miles of an operating nuclear power plant, as identified by the Nuclear Regulatory Commission, the ratio under paragraph (1)(C) shall be 1 divided by the total number of urban counties, not to exceed 100, which are located within 50 miles of an operating nuclear power plant.

(D) PROXIMITY AS IT PERTAINS TO PORT SECURITY- If a urban county is located within 50 miles of 1 of the 100 largest United States ports, as stated by the Department of Transportation, Bureau of Transportation Statistics, United States Port Report by All Land Modes, or within 50 miles of one of the 30 largest United States water ports by metric tons and value, as stated by the Department of Transportation, Maritime Administration, United States Foreign Waterborne Transportation Statistics, the ratio under paragraph (1)(D) shall be 1 divided by the total number of urban counties that are located within 50 miles of a United States land or water port.

(E) PROXIMITY TO INTERNATIONAL BORDERS- If a urban county is located within 50 miles of an international border, the ratio under paragraph (1)(E) shall be 1 divided by the total number of urban counties that are located within 50 miles of an international border.

(F) PROXIMITY TO DISASTER MEDICAL ASSISTANCE TEAMS- If a urban county is located within 50 miles of a DMAT, as organized by the National Disaster Medical System through the Department of Public Health, the ratio under paragraph (1)(F) shall be 1 divided by the total number of urban counties that are located within 50 miles of a DMAT.

(e) EXCLUSIONS-

(1) IN GENERAL- In computing amounts or exclusions under subsection (d) with respect to any urban county, there shall be excluded units of general local government located in the county the populations that are not counted in determining the eligibility of the urban county to receive a grant under this subsection, except that there shall be included

any independent city (as defined by the Bureau of the Census) which--

(A) is not part of any county;

(B) is not eligible for a grant;

(C) is contiguous to the urban county;

(D) has entered into cooperation agreements with the urban county which provide that the urban county is to undertake or to assist in the undertaking of essential community development and housing assistance activities with respect to such independent city; and

(E) is not included as a part of any other unit of general local government for purposes of this section.

(2) INDEPENDENT CITIES- Any independent city that is included in any fiscal year for purposes of computing amounts pursuant to the preceding sentence shall not be eligible to receive assistance under subsection (i) with respect to such fiscal year.

(f) INCLUSIONS-

(1) LOCAL GOVERNMENT STRADDLING COUNTY LINE- In computing amounts under subsection (d) with respect to any urban county, there shall be included all of the area of any unit of local government which is part of, but is not located entirely within the boundaries of, such urban county if--

(A) the part of such unit of local government that is within the boundaries of such urban county would otherwise be included in computing the amount for such urban county under this section; and

(B) the part of such unit of local government that is not within the boundaries of such urban county is not included as a part of any other unit of local government for the purpose of this section.

(2) USE OF GRANT FUNDS OUTSIDE URBAN COUNTY- Any amount received under this section by an urban county described under paragraph (1) may be used with respect to the part of such unit of local government that is outside the boundaries of such urban county.

(g) POPULATION-

(1) EFFECT OF CONSOLIDATION- Where data are available, the amount to be allocated to a metropolitan city that has been formed by the consolidation of 1 or more metropolitan cities within an urban county shall be equal to the sum of the amounts that would have been allocated to the urban county or cities and the balance of the consolidated government, if such consolidation had not occurred.

(2) LIMITATION- Paragraph (1) shall apply only to a consolidation that--

(A) included all metropolitan cities that received grants under this section for the fiscal year preceding such consolidation and that were located within the urban county;

(B) included the entire urban county that received a grant under this section for the fiscal year preceding such consolidation; and

(C) took place on or after January 1, 2003.

(3) GROWTH RATE- The population growth rate of all metropolitan cities defined in section 3(a)(6) shall be based on the population of--

(A) metropolitan cities other than consolidated governments the grant for which is determined under this paragraph; and

(B) cities that were metropolitan cities before their incorporation into consolidated governments.

(4) ENTITLEMENT SHARE- For purposes of calculating the entitlement share for the balance of the consolidated government under this subsection, the entire balance shall be considered to have been an urban county.

(h) REALLOCATION-

(1) IN GENERAL- Except as provided in paragraph (2), any amounts allocated to a metropolitan city or an urban county pursuant to this section that are not received by the city or county for a fiscal year because of failure to meet the requirements of subsections (a) and (b) of section 5, or that otherwise became available, shall be reallocated in the succeeding fiscal year to the other metropolitan cities and urban counties in the same metropolitan area that certify to the satisfaction of the Secretary that they would be adversely affected by the loss of such amounts from the metropolitan area.

(2) RATIO- The amount of the share of funds reallocated under this paragraph for any metropolitan city or urban county shall bear the same ratio to the total of such reallocated funds in the metropolitan area as the amount of funds awarded to the city or county for the fiscal year in which the reallocated funds become available bears to the total amount of funds awarded to all metropolitan cities and urban counties in the same metropolitan area for that fiscal year.

(3) TRANSFER- Notwithstanding paragraphs (1) and (2), the Secretary may upon request transfer responsibility to any metropolitan city for the administration of any amounts received, but not obligated, by the urban county in which such city is located if--

(A) such city was an included unit of general local government in such county prior to the qualification of such city as a metropolitan city;

(B) such amounts were designated and received by such county for use in such city prior to the qualification of such city as a metropolitan city; and

(C) such city and county agree to such transfer of responsibility for the administration of such amounts.

(i) ALLOCATION TO STATES ON BEHALF OF NON-QUALIFYING COMMUNITIES-

(1) IN GENERAL- Of the amount appropriated pursuant to section 4 that remains after allocations pursuant to subsections (a) and (b), 30 percent shall be allocated among the States for use in nonqualifying communities.

(2) ALLOCATION RATIO-

(A) POPULATION-BASED- The allocation for each State shall be based on the population of that State, relative to the populations of all States, excluding the population of qualifying communities.

(B) PRO-RATA REDUCTION- The Secretary shall make a pro rata reduction of each amount allocated to the nonqualifying communities in each State under subparagraph (A) so that the nonqualifying communities in each State will receive the same percentage of the total amount available under this subsection as the percentage that such communities would have received if the total amount available had equaled the total amount allocated under subparagraph (A).

(3) DISTRIBUTION-

(A) IN GENERAL- Amounts allocated under this subsection shall be distributed to units of general local government located in nonqualifying areas of the State to carry out activities in accordance with the provisions of this Act--

(i) by a State that has elected, in such manner and at such time as the Secretary shall prescribe, to distribute such amounts consistent with the statement submitted under section 5(a); or

(ii) by the Secretary, if the State has not elected to distribute such amounts.

(B) CERTIFICATION- Before a State may receive or distribute amounts allocated under this subsection, the State must certify that--

(i) with respect to units of general local government in nonqualifying areas, the State--

(I) provides, or will provide, technical assistance to units of general local government in connection with homeland security initiatives;

(II) will not refuse to distribute such amounts to any unit of general local government on the basis of the particular eligible activity selected by such unit of general local government to meet its homeland security objectives, except that this clause may not be considered to prevent a State from establishing priorities in distributing such amounts on the basis of the activities selected; and

(III) has consulted with local elected officials from among units of general local government located in nonqualifying areas of that State in determining the method of distribution of funds required by subparagraph (A); and

(ii) each unit of general local government to be distributed funds will be required to identify its homeland security objectives, and the activities to be undertaken to meet such objectives.

(4) MINIMUM AMOUNT- Each State shall be allocated in each fiscal year authorized under this Act and under this section not less than 0.75 percent of the total amount appropriated in one fiscal year for grants made available to States under this section, except that the American Samoa, Guam, and the Northern Mariana Islands shall each be allocated 0.25 percent.

(5) ADMINISTRATION-

(A) IN GENERAL- If a State receives and distributes amounts under paragraph (1), the State shall be responsible for the administration of funds so distributed. The State shall pay for all administrative expenses incurred by the State in carrying out its responsibilities under this Act, except that from the amounts received for distribution in nonqualifying areas, the State may deduct an amount to cover such expenses and its administrative expenses not to exceed the sum of $150,000 plus 50 percent of any such expenses under this Act in excess of $150,000. Amounts deducted in excess of $150,000 shall not exceed 2 percent of the amount received under paragraph (1).

(B) DISTRIBUTION- If the Secretary distributes amounts under paragraph (1), the distribution shall be made in accordance with determinations of the Secretary pursuant to statements submitted and the other requirements of section 5 (other than subsection (c)) and in accordance with regulations and procedures prescribed by the Secretary.

(C) REALLOCATION-

(i) FAILURE TO COMPLY- Any amounts allocated for use in a State under paragraph (1) that are not received by the State for any fiscal year because of failure to meet the requirements of subsection (a) or (b) of section 5 shall be added to amounts allocated to all States under paragraph (1) for the succeeding fiscal year.

(ii) CLOSEOUT- Any amounts allocated for use in a State under paragraph (1) that become available as a result of the closeout of a grant made by the Secretary under this section in nonqualifying areas of the State shall be added to amounts allocated to the State under paragraph (1) for the fiscal year in which such amounts become available.

(6) SINGLE UNIT- Any combination of units of general local governments may not be required to obtain recognition by the Secretary pursuant to section 3(2) to be treated as a single unit of general local government for purposes of this subsection.

(7) DEDUCTION- From the amounts received under paragraph (1) for distribution in nonqualifying areas, the State may deduct an amount, not to exceed 1 percent of the amount so received, to provide technical assistance to local governments.

(8) APPLICABILITY- Any activities conducted with amounts received by a unit of general local government under this subsection shall be subject to the applicable provisions of this Act and other Federal law in the same manner and to the same extent as activities conducted with amounts received by a unit of general local government under subsection (a).

(j) QUALIFICATIONS AND DETERMINATIONS- The Secretary may fix such qualification or submission dates as he determines are necessary to permit the computations and determinations required by this section to be made in a timely manner, and all such computations and determinations shall be final and conclusive.

(k) PRO RATA REDUCTION AND INCREASE-

(1) REDUCTION- If the total amount available for distribution in any fiscal year to metropolitan cities and urban counties under this section is insufficient to provide the amounts to which metropolitan cities and urban counties would be entitled under this section, and funds are not otherwise appropriated to meet the deficiency, the Secretary shall meet the deficiency through a pro rata reduction of all amounts determined under this section.

(2) INCREASE- If the total amount available for distribution in any fiscal year to metropolitan

cities and urban counties under this section exceeds the amounts to which metropolitan cities and urban counties would be entitled under this section, the Secretary shall distribute the excess through a pro rata increase of all amounts determined under this section.

SEC. 8. STATE AND REGIONAL PLANNING; COMMUNICATIONS SYSTEMS.

(a) ALLOCATIONS- Subject to appropriations authorized under section 4(b)(2), $500,000,000 shall be allocated to States, regional cooperations, and local communities, in accordance with subsection (b) for--

(1) homeland defense planning within the States;

(2) homeland defense planning within the regions;

(3) the development and maintenance of Statewide training facilities and homeland security best-practices clearinghouses; and

(4) the development and maintenance of communications systems that can be used between and among first responders, including law enforcement, fire, and emergency medical personnel.

(b) USE OF FUNDS- Of the amount allocated under subsection (a)--

(1) $325,000,000 shall be used by the States for homeland defense planning and coordination within each State;

(2) $50,000,000 shall be used by regional cooperations and regional, multistate, or intrastate authorities for homeland defense planning and coordination within each region;

(3) $50,000,000 shall be used by the States to develop and maintain Statewide training facilities and best-practices clearinghouses; and

(4) $75,000,000 shall be used by the States and local communities to develop and maintain communications systems that can be used between and among first responders at the State and local level, including law enforcement, fire, and emergency personnel.

(c) ALLOCATIONS TO STATES-

(1) IN GENERAL- Funds under this section to be awarded to States shall be allocated among the States based upon the population for each State relative to the populations of all States.

(2) MINIMUM AMOUNT PROVISION- The provision in section 7(i)(4) relating to a minimum amount shall apply to funds awarded under this section to States.

(3) LOCAL COMMUNICATIONS SYSTEMS- Not less than 30 percent of the funds awarded under subsection (b)(4) shall be used for the development and maintenance of local communications systems.

(d) ALLOCATIONS TO REGIONAL COOPERATIONS- Funds under this section to be awarded to regional cooperations and regional, multistate, or intrastate authorities, shall be allocated among the regional cooperations based upon the population of the areas covered by the cooperations.

SEC. 9. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

No person in the United States shall on the ground of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Act. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any such program or activity.

SEC. 10. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS.

If the Secretary finds after reasonable notice and opportunity for hearing that a recipient of assistance under this Act has failed to comply substantially with any provision of this Act, the Secretary shall--

(1) terminate payments to the recipient under this Act;

(2) reduce payments to the recipient under this Act by an amount equal to the amount of such payments which were not expended in accordance with this Act; or

(3) limit the availability of payments under this Act to programs, projects, or activities not affected by such failure to comply.

SEC. 11. REPORTING REQUIREMENTS.

(a) IN GENERAL- Not later than 180 days after the end of each fiscal year in which assistance is awarded under this Act, the Secretary shall submit to Congress a report which shall contain--

(1) a description of the progress made in accomplishing the objectives of this Act;

(2) a summary of the use of such funds during the preceding fiscal year; and

(3) a description of the activities carried out under section 7.

(b) REPORTS TO SECRETARY- The Secretary is authorized to require recipients of assistance under this Act to submit to such reports and other information as may be necessary in order for the Secretary to comply with subsection (a).

SEC. 12. CONSULTATION BY ATTORNEY GENERAL.

In carrying out the provisions of this Act including the issuance of regulations, the Secretary shall consult with the Attorney General and other Federal departments and agencies administering Federal grant-in-aid programs.

SEC. 13. INTERSTATE AGREEMENTS OR COMPACTS; PURPOSES.

The consent of the Congress is hereby given to any 2 or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative effort and mutual assistance in support of homeland security planning and programs carried out under this Act as they pertain to interstate areas and to localities within such States, and to establish such agencies, joint or otherwise, as they may deem desirable for making such agreements and compacts effective.

SEC. 14. MATCHING REQUIREMENTS; SUSPENSION OF REQUIREMENTS FOR ECONOMICALLY DISTRESSED AREAS.

(a) REQUIREMENT- Grant recipients shall contribute from funds, other than those received under this Act, 10 percent of the total funds received under this Act. Such funds shall be used in accordance with the grantee's statement of homeland security objectives.

(b) ECONOMIC DISTRESS- Grant recipients that are deemed economically distressed shall be waived from the matching requirement set forth in this section.

END