[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1007 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1007

             To provide for homeland security block grants.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2003

    Mr. McNulty (for himself and Ms. Loretta Sanchez of California) 
 introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committees on 
the Judiciary, Energy and Commerce, and Select Homeland Security, 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 2003''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
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 AND PURPOSE.

    (a) 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.
    (b) Purpose.--The purpose of this Act is to provide needed funds to 
first responders to be used for the purpose of bolstering emergency 
response efforts and other emergency response initiatives in case of 
terrorist or other attack on our home front.

SEC. 3. DEFINITIONS.

    (a) Definitions.--In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        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 
2003 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), 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, from 
        such allocation in an amount not exceeding its basic amount 
        computed pursuant to 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;
                    (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; and
                    (G) the proximity of the metropolitan city to 
                tourist attractions, Federal buildings, convention 
                centers, and other areas and facilities that attract 
                large numbers of people at specific times.
            (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.
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