[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1737 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1737

             To provide for homeland security block grants.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 28, 2001

 Mrs. Clinton (for herself, Ms. Mikulski, Mrs. Feinstein, Mr. Durbin, 
 and Mr. Schumer) introduced the following bill; which was read twice 
             and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 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''.
    (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. Nondiscrimination in programs and activities.
Sec. 9. Remedies for noncompliance with requirements.
Sec. 10. Reporting requirements.
Sec. 11. Consultation by Attorney General.
Sec. 12. Interstate agreements or compacts; purposes.
Sec. 13. 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) Attorney general.--The term ``Attorney General'' means 
        the United States Attorney General.
            (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 Attorney General--
                            (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) Extent of poverty.--The term ``extent of poverty'' 
        means the number of persons whose incomes are below the poverty 
        level. Poverty levels shall be determined by the Attorney 
        General pursuant to criteria provided by the Office of 
        Management and Budget taking into account and making 
        adjustments, if feasible and appropriate and in the sole 
        discretion of the Attorney General, for regional or area 
        variations in income and cost of living, and shall be based on 
        data referable to the same point or period in time.
            (4) 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.
            (5) 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.
            (6) Metropolitan area.--The term ``metropolitan area'' 
        means a standard metropolitan statistical area as established 
        by the Office of Management and Budget.
            (7) Metropolitan city.--The term ``metropolitan city'' 
        means--
                    (A) 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
                    (B) any other city, within a metropolitan area, 
                which has a population of fifty thousand or more.
        Any city that was classified as a metropolitan city for at 
        least 2 years pursuant to the first sentence of this paragraph 
        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 Attorney 
        General, 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). 
        Notwithstanding the second sentence of this paragraph, 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 Attorney General, 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.
            (8) 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.
            (9) 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.
            (10) 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.
            (11) 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.
            (12) 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 Attorney General 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)(6) 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 Attorney General, 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 
Attorney General, 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 Attorney General 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.

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 Attorney General 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 
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 Attorney General 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 Attorney 
        General, at a time determined by the Attorney General, 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 
        Attorney General 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 Attorney General, 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 Attorney General's 
        approval of these recommendations, the Attorney General shall 
        establish such requirements for use by such grantees, States, 
        and units of general local government.
            (2) Reviews and audits.--The Attorney General 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 Attorney General may make appropriate 
        adjustments in the amount of the annual grants in accordance 
        with the Attorney General's findings under this subsection. 
        With respect to assistance made available to units of general 
        local government under section 7(d), the Attorney General may 
        adjust, reduce, or withdraw such assistance, or take other 
        action as appropriate in accordance with the Attorney General'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 Attorney General 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.

    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) tunnels and bridges;
                    (C) oil and gas pipelines and storage facilities; 
                and
                    (D) 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.

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 Attorney General shall reserve for grants 
        to Indian tribes 1 percent of the amount appropriated under 
        such section. The Attorney General 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 Attorney General 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 Attorney General 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 Attorney General shall determine the 
        amount to be allocated to each metropolitan city based on the 
        population of that metropolitan city.
            (2) Urban counties.--The Attorney General 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 Attorney General 
        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 Attorney General 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, factoring in the population of qualifying 
        communities in that State, and the population of qualifying 
        communities of all States. The Attorney General 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 Attorney General shall prescribe, 
                to distribute such amounts consistent with the 
                statement submitted under section 5(a); or
                    (ii) by the Attorney General, in any case described 
                in subparagraph (B), for use by units of general local 
                government in accordance with paragraph (3)(B).
            (B) The Attorney General 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) 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 Attorney General distributes such amounts, the 
        distribution shall be made in accordance with determinations of 
        the Attorney General 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 
        Attorney General.
            (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 Attorney General 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.
            (4) Single unit.--Any combination of units of general local 
        governments may not be required to obtain recognition by the 
        Attorney General pursuant to section 3(2) to be treated as a 
        single unit of general local government for purposes of this 
        subsection.
            (5) 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.
            (6) 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 Attorney General 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 Attorney General 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 Attorney General shall distribute 
the excess through a pro rata increase of all amounts determined under 
subsection (b).

SEC. 8. 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. 9. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS.

    If the Attorney General 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 
Attorney General, 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. 10. 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 
Attorney General 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 Attorney General.--The Attorney General 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 Attorney General to make the report required by subsection (a).

SEC. 11. CONSULTATION BY ATTORNEY GENERAL.

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

SEC. 12. 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. 13. 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>