[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4059 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4059

             To provide for homeland security block grants.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2002

 Mr. McNulty introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
 Committees on the Judiciary, and Energy and Commerce, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
             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 2002''.
    (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 Director.
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) Director.--The term ``Director'' means the Director of 
        the Federal Emergency Management Agency (FEMA).
            (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 Director--
                            (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 fifty thousand 
                        or more.
                    (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 Director, 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 Director, 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 Director; 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 Director 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 Director, 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 Director, 
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.

    The Director 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. For purposes of assistance 
under section 7, there is authorized to be appropriated $3,000,000,000 
in fiscal year 2002, and such additional sums as are authorized 
thereafter. For purposes of assistance under section 8, there is 
authorized to be appropriated $500,000,000 in fiscal year 2002, and 
such sums as are authorized thereafter.

SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW.

    (a) Application.--Prior to the receipt in any fiscal year of a 
grant under section 7(b) by any metropolitan city or urban county, 
under section 7(d) by any State, or under section 7(d)(2) by any unit 
of general local government, the grantee shall have indicated its 
interest in receiving funds by preparing a statement of homeland 
security objectives and projected use of funds and shall have provided 
the Director with the certifications required in subsection (b) and, 
where appropriate, subsection (c). In the case of metropolitan cities 
and urban counties receiving grants pursuant to section 7(b) and in the 
case of units of general local government receiving grants pursuant to 
section 7(d)(2), the statement of projected use of funds shall consist 
of proposed homeland security activities. In the case of States 
receiving grants pursuant to 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. In preparing the 
statement, the grantee shall consider any view of appropriate law 
enforcement, and emergency response authorities and may, if deemed 
appropriate by the grantee, modify the proposed statement. A copy of 
the final statement shall be furnished to the Director, the Attorney 
General, and the Office of Homeland Security together with the 
certifications required under subsection (b) and, where appropriate, 
subsection (c). 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.
    (b) 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 Director that--
            (1) it has developed a homeland security plan pursuant to 
        section 5 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
            (2) the grantee will comply with the other provisions of 
        this Act and with other applicable laws.
    (c) Submission of Annual Performance Reports, Audits and 
Adjustments.--
            (1) In general.--Each grantee shall submit to the Director, 
        at a time determined by the Director, 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). The Director 
        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 Director, 
        within 1 year after the effective date of this sentence, 
        uniform recordkeeping, performance reporting, evaluation 
        reporting, and auditing requirements for such grantees, States, 
        and units of general local government, respectively. Based on 
        the Director's approval of these recommendations, the Director 
        shall establish such requirements for use by such grantees, 
        States, and units of general local government.
            (2) Reviews and audits.--The Director 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(d), 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).
            (3) Adjustments.--The Director may make appropriate 
        adjustments in the amount of the annual grants in accordance 
        with the Director's findings under this subsection. With 
        respect to assistance made available to units of general local 
        government under section 7(d), the Director may adjust, reduce, 
        or withdraw such assistance, or take other action as 
        appropriate in accordance with the Director'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.
    (d) 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.
    (e) 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 Director 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 
only--
            (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, and 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) Allocation and Distribution of Funds; Set-Aside for Indian 
Tribes.--
            (1) Allocation.--For each fiscal year, of the amount 
        approved in an appropriation Act under section 4 for grants in 
        a year (excluding the amounts provided for use in accordance 
        with section 6), the Director shall reserve for grants to 
        Indian tribes 1 percent of the amount appropriated under such 
        section. The Director 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. The 
        criteria shall be contained in a regulation promulgated by the 
        Director after notice and public comment.
            (2) Remaining allocation.--Of the amount remaining after 
        allocations pursuant to paragraph (1), 70 percent shall be 
        allocated by the Director to metropolitan cities and urban 
        counties. 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 2002, 
        from such allocation in an amount not exceeding its basic 
        amount computed pursuant to paragraph (1) or (2) of subsection 
        (b).
    (b) Computation of Amount Allocated to Metropolitan Cities and 
Urban Counties.--
            (1) In general.--The Director shall determine the amount to 
        be allocated to each metropolitan city based on the population 
        of that metropolitan city.
            (2) Urban counties.--The Director shall determine the 
        amount to be allocated to each urban county based on the 
        population of that urban county.
            (3) Exclusions.--In computing amounts or exclusions under 
        this section 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 pursuant to 
                subsection (b)(1);
                    (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.
        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 (d) with respect to such fiscal year.
            (4) Inclusions.--In computing amounts under this section 
        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 the part of such unit of local government which 
        is within the boundaries of such urban county would otherwise 
        be included in computing the amount for such urban county under 
        this section, and if 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. Any amount received by such urban 
        county under this section may be used with respect to the part 
        of such unit of local government that is outside the boundaries 
        of such urban county.
            (5) Population.--(A) Where data are available, the amount 
        determined under paragraph (1) for a metropolitan city that has 
        been formed by the consolidation of one or more metropolitan 
        cities with an urban county shall be equal to the sum of the 
        amounts that would have been determined under paragraph (1) for 
        the metropolitan city or cities and the balance of the 
        consolidated government, if such consolidation had not 
        occurred. This paragraph shall apply only to any consolidation 
        that--
                    (i) 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;
                    (ii) included the entire urban county that received 
                a grant under this section for the fiscal year 
                preceding such consolidation; and
                    (iii) took place on or after January 1, 2002.
            (B) The population growth rate of all metropolitan cities 
        referred to in section 3 shall be based on the population of--
                    (i) metropolitan cities other than consolidated 
                governments the grant for which is determined under 
                this paragraph; and
                    (ii) cities that were metropolitan cities before 
                their incorporation into consolidated governments. For 
                purposes of calculating the entitlement share for the 
                balance of the consolidated government under this 
                paragraph, the entire balance shall be considered to 
                have been an urban county.
    (c) Reallocation.--
            (1) In general.--Except as provided in paragraph (2), any 
        amounts allocated to a metropolitan city or an urban county 
        pursuant to the preceding provisions of 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 Director that they 
        would be adversely affected by the loss of such amounts from 
        the metropolitan area. 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.
            (2) Transfer.--Notwithstanding the provisions of paragraph 
        (1), the Director 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.
    (d) Allocation to States on Behalf of Non-qualifying Communities.--
            (1) In general.--Of the amount approved in an appropriation 
        Act under section 4 that remains after allocations pursuant to 
        paragraphs (1) and (2) of subsection (a), 30 percent shall be 
        allocated among the States for use in nonqualifying areas. 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. The 
        Director shall, in order to compensate for the discrepancy 
        between the total of the amounts to be allocated under this 
        paragraph and the total of the amounts available under such 
        paragraph, make a pro rata reduction of each amount allocated 
        to the nonqualifying communities in each State under such 
        paragraph so that the nonqualifying communities in each State 
        will receive an amount that represents the same percentage of 
        the total amount available under such paragraph as the 
        percentage which the nonqualifying areas of the same State 
        would have received under such paragraph if the total amount 
        available under such paragraph had equaled the total amount 
        which was allocated under such paragraph.
            (2) Distribution.--(A) Amounts allocated under paragraph 
        (1) 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 Director shall prescribe, to 
                distribute such amounts consistent with the statement 
                submitted under section 5(a); or
                    (ii) by the Director, in any case described in 
                subparagraph (B), for use by units of general local 
                government in accordance with paragraph (3)(B).
            (B) The Director shall distribute amounts allocated under 
        paragraph (1) if the State has not elected to distribute such 
        amounts.
            (C) To receive and distribute amounts allocated under 
        paragraph (1), the State must certify that it, with respect to 
        units of general local government in nonqualifying areas--
                    (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).
            (D) To receive and distribute amounts allocated under 
        paragraph (1), the State shall certify that 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.
            (3) Minimum amount.--Each State shall be allocated in each 
        fiscal year authorized under this Act and under this section 
        not less than .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 .25 percent.
            (4) Administration.--(A) If the State receives and 
        distributes such amounts, it shall be responsible for the 
        administration of funds so distributed. The State shall pay 
        from its own resources 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 so received.
            (B) If the Director distributes such amounts, the 
        distribution shall be made in accordance with determinations of 
        the Director 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 
        Director.
            (C) 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.
            (D) 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 Director 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 the amounts become so available.
            (5) Single unit.--Any combination of units of general local 
        governments may not be required to obtain recognition by the 
        Director pursuant to section 3(2) to be treated as a single 
        unit of general local government for purposes of this 
        subsection.
            (6) 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.
            (7) 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).
    (e) Qualifications and Determinations.--The Director 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.
    (f) Pro Rata Reduction and Increase.--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 
subsection (b), and funds are not otherwise appropriated to meet the 
deficiency, the Director shall meet the deficiency through a pro rata 
reduction of all amounts determined under subsection (b). 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 
subsection (b), the Director shall distribute the excess through a pro 
rata increase of all amounts determined under subsection (b).

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

    (a) In General.--Pursuant to section 4, $500,000,000 shall be used 
for homeland defense planning within the States by the States, and 
within regions through regional cooperations; the development and 
maintenance of Statewide training facilities and homeland best-
practices clearinghouses; and the development and maintenance of 
communications systems that can be used between and among first 
responders, including law enforcement, fire, and emergency medical 
personnel as follows:
            (1) $325,000,000 to the States for homeland defense 
        planning and coordination;
            (2) $50,000,000 to regional cooperations for homeland 
        defense planning and coordination;
            (3) $50,000,000 to the States for the development and 
        maintenance of Statewide training facilities and best-practices 
        clearinghouses; and
            (4) $75,000,000 to the States for the States and for local 
        communities for the development and maintenance of 
        communications systems that can be used between and among first 
        responders at the State and local level, including law 
        enforcement, fire, and emergency personnel.
    (b) Allocations.--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. The ``minimum amount'' 
provision set forth in section 7(a)(3) shall apply to funds awarded 
under this section to States. With respect to subsection (a)(4), at 
least 30 percent of the funds awarded must be used for the development 
and maintenance of local communications systems.
    (c) Regional Cooperations.--Funds under this section to be awarded 
to regional cooperations 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 Director 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 Director, 
until he is satisfied that there is no longer any such failure to 
comply, 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 close of each 
fiscal year in which assistance under this Act is furnished, the 
Director 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 the Director.--The Director is authorized to require 
recipients of assistance under this Act to submit to him such reports 
and other information as may be necessary in order for the Director to 
make the report required by subsection (a).

SEC. 12. CONSULTATION BY ATTORNEY GENERAL.

    In carrying out the provisions of this Act including the issuance 
of regulations, the Director shall consult with the Attorney General, 
the Office of Homeland Security, 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 two 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.
                                 <all>