[Congressional Record Volume 149, Number 36 (Thursday, March 6, 2003)]
[Senate]
[Pages S3323-S3325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. EDWARDS:
  S. 565. A bill to improve homeland security, prevent tax increases, 
support education and health care, and strengthen the economy; to the 
Committee on Appropriations.
  Mr. EDWARDS. Mr. President, I rise today to introduce the Homeland 
Protection and Tax Hike Prevention Act of 2003.
  As I speak, State governments face a budget gap of $80 billion in 
2004, according to the National Governors Association. My own State of 
North Carolina must close a $2 billion deficit this year, the third 
year in a row that we have faced a deficit of $1 billion or more. There 
is an additional $30 billion deficit in 2003 that, for most States, 
must be closed before the fiscal year ends in June. Cities and towns 
face a similar budget pinch. The likely result in many States will be 
steep tax increases and budget cuts.
  Because most States have seen two or three lean years in a row, the 
easiest cuts and sources of revenue have already been tapped. States 
already closed nearly $50 billion in deficits for 2003. According to 
Standard and Poor's, ``With rainy day funds having been depleted 
rapidly over the past three years, few options remain other than tough 
cuts or revenue increases.''
  The State and local budget crisis is a serious threat to our economy. 
State spending cuts and tax increases equaling $100 billion would 
directly lower GDP growth by one percentage point, according to the 
Center on Budget and Policy Priorities. According to the Center, ``The 
only way this blow to the economy can be mitigated is through federal 
fiscal relief for the states.''
  Millions of Americans across the Nation will be directly affected by 
State tax increases and budget cuts. For example, Kansas is considering 
new taxes on hair stylists, theaters, and doctors. Missouri is now 
taxing pharmacies. In fact, policymakers in 15 States are already 
calling for tax increases of approximately $14 billion in 2004.
  New York budget proposals would raise class sizes and cut 43,000 
early education slots in New York City. Florida may take away medical 
coverage for 26,000 low-income people. In California, hundreds of 
nursing homes are in danger of bankruptcy, according to the Washington 
Post. San Diego may close fire stations.
  Portland, OR, will likely trim its school year by 24 days. Oregon 
State police are laying off 129 troopers and abandoning 24-hour 
patrols. The Multnomah county jail will release as many as 500 inmates 
early. Medical benefits will be eliminated for 8,000 elderly and 
disabled people.
  This is wrong. It's wrong for the people being hurt. And it is wrong 
for our economy. That's why I am proposing the Homeland Protection and 
Tax Hike Prevention Act of 2003. This bill would enacts a State relief 
plan I first described last November. It gives States and cities a 
total of $50 billion, allowing them to avoid raising taxes and protect 
critical priorities in public safety, education, and health care.
  First, my legislation would provide $10 billion to states and major 
cities to strengthen homeland security. We have a whole range of 
homeland security priorities that we ought to be meeting but we 
haven't. Although our domestic readiness begins with first responders, 
they are not getting the training and equipment they need to respond to 
an attack with speed, skill, and strength. Our public health system 
isn't fully prepared to respond to biological attacks. We need to 
modernize an emergency warning system that is terribly out of date so 
we can reach Americans at any time, day or night.
  Our infrastructure is exposed. There are 500 large skyscrapers, 250 
major arenas and stadiums, and countless train, subway, and automobile 
bridges and tunnels. Many of these facilities have vulnerable 
ventilation systems, poor emergency exits, and inadequate fire 
retardants and blast-resistant materials. Security at nuclear and 
chemical plants and over shipments is still too lax. At 123 chemical 
plants, a toxic chemical release would endanger a million people or 
more.
  We need to meet all these priorities, and we can ought to meet them 
through a partnership between Washington, states, and local 
communities. This bill goes a long way toward doing that by providing 
$10 billion for homeland security.
  Next, today's bill would provide States $10 billion through higher 
Medicaid reimbursements. Higher Medicaid reimbursements can 
dramatically help State budgets. It can also address serious inequities 
in the way Medicaid funds are distributed today. The legislation is 
based on Senator Rockefeller's excellent proposal. It maintains last 
year's Medicaid matching rate where rates are declining and provides an 
additional modest, temporary increase in the matching rate. This short-
lived relief will help states balance their budgets and protect 
children and seniors who rely on Medicaid.
  Last but not least, my bill will give States and local governments 
$30 billion in general relief. In return for this aid, State and local 
governments must agree not to cut K-12 education funding or raise 
college tuition faster than inflation for low- and middle-income 
families.
  Across the Nation, States and cities are struggling with more needs 
and less revenue. Washington is not doing its part to help. Instead, we 
have created new demands through the No Child Left Behind education 
reform law and the Federal special education laws, without delivering 
the resources needed to meet those demands. We ought to help States and 
localities meet those demands, and this bill will do that.
  The Homeland Protection and Tax Hike Protection Act will strengthen 
our homeland security and prevent states and cities from raising taxes 
and cutting schools and health care. I hope my colleagues will join me 
in supporting it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 565

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Homeland Protection and Tax 
     Hike Prevention Act of 2003''.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to ameliorate the hardships faced by millions of 
     Americans as a result of State and local budget crises, 
     including tax increases and cuts to education, health care, 
     and other vital State and local programs;
       (2) to avoid the economic damage that would be caused by 
     tens of billions of dollars in State and local tax increases 
     and spending cuts that would further weaken the Nation's 
     economic growth and job creation; and
       (3) to improve the Nation's readiness for a terrorist 
     attack by providing financial assistance to assist States and 
     cities to--
       (A) prepare first responders and emergency personnel;
       (B) implement anti-counterfeiting protections;
       (C) strengthen security at vulnerable targets, such as 
     nuclear power plants and public transportation systems; and
       (D) address other homeland security priorities.

     SEC. 3. DEFINITIONS.

       As used in this Act, the following definitions shall apply:
       (1) State.--Except as used in section 6, the term ``State'' 
     means each of the several States of the United States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       (2) Metropolitan statistical area.--The term ``metropolitan 
     statistical area'' means a statistical geographic entity 
     associated with at least 1 urbanized area that has a 
     population of not less than 50,000, as identified by the 
     Office of Management and Budget.
       (3) Metropolitan city.--The term ``metropolitan city'' 
     means--
       (A) a central city within a metropolitan statistical area; 
     and
       (B) any other city within a metropolitan statistical area 
     that has a population of not less than 50,000.
       (4) Unit of general local government.--
       (A) In general.--The term ``unit of general local 
     government'' means--
       (i) a county, parish, township, city, or political 
     subdivision of a county, parish, township, or city, that is a 
     unit of general local

[[Page S3324]]

     government as determined by the Secretary of Commerce for 
     general statistical purposes; and
       (ii) the District of Columbia, the Commonwealth of Puerto 
     Rico, and the recognized governing body of an Indian tribe or 
     Alaskan native village that carries out substantial 
     governmental duties and powers.
       (B) Treatment of subsumed areas.--For purposes of 
     determining a unit of general local government under this 
     section, the rules under section 6720(c) of title 31, United 
     States Code, shall apply.

     SEC. 4. HOMELAND SECURITY GRANTS.

       (a) Grants Authorized.--
       (1) In general.--From the amount appropriated under 
     subsection (d), the Secretary of Homeland Security (referred 
     to in this section as the ``Secretary'') shall, as soon as 
     practicable after the date of enactment of this Act, award 
     grants to States and metropolitan cities, which have 
     submitted an application in accordance with subsection (c) to 
     accomplish the objectives described under subsection (b).
       (2) Allocations to states.--
       (A) Population-based allocations.--The Secretary shall 
     allocate $2,500,000,000 for grants to the States based on the 
     relative population of each State.
       (B) Risk-based allocations.--Subject to paragraph (4), the 
     Secretary shall allocate $2,500,000,000 for grants to the 
     States based on--
       (i) the potential risk, as it pertains to chemical 
     security, of each State;
       (ii) the proximity of each State to the nearest operating 
     nuclear power plant;
       (iii) the proximity of each State to the nearest United 
     States land or water port;
       (iv) the proximity of each State to the nearest 
     international border; and
       (v) the proximity of each State to the nearest Disaster 
     Medical Assistance Team.
       (3) Allocations to metropolitan cities.--
       (A) Population-based allocations.--The Secretary shall 
     allocate $2,500,000,000 for grants to units of general local 
     government within metropolitan cities based on the relative 
     population of each metropolitan statistical area.
       (B) Risk-based allocations.--The Secretary shall allocate 
     $2,500,000,000 for grants to metropolitan cities within 
     metropolitan statistical areas based on--
       (i) the potential risk, as it pertains to chemical 
     security, of each metropolitan statistical area;
       (ii) the proximity of each metropolitan statistical area to 
     the nearest operating nuclear power plant;
       (iii) the proximity of each metropolitan statistical area 
     to the nearest United States land or water port;
       (iv) the proximity of each metropolitan statistical area to 
     the nearest international border; and
       (v) the proximity of each metropolitan statistical area to 
     the nearest Disaster Medical Assistance Team.
       (C) Metropolitan cities.--The Secretary shall distribute 
     the allocations under subparagraphs (A) and (B) to 
     metropolitan cities based on the relative population of each 
     such city.
       (4) Clarification of risk factors.--In allocating funds to 
     States and metropolitan statistical areas under paragraphs 
     (2)(B) and (3)(B), the Secretary shall equally weigh each of 
     the following risk factors:
       (A) Potential risk as it pertains to chemical security.--If 
     a State or metropolitan statistical area 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 
     paragraphs (2)(B)(i) and (3)(B)(i) shall be 1 divided by the 
     total number of States or metropolitan statistical areas that 
     are within such a zone.
       (B) Proximity as it pertains to nuclear security.--If a 
     State or metropolitan statistical area is located within 50 
     miles of an operating nuclear power plant, as identified by 
     the Nuclear Regulatory Commission, the ratio under paragraphs 
     (2)(B)(ii) and (3)(B)(ii) shall be 1 divided by the total 
     number of States or metropolitan statistical areas that are 
     located within 50 miles of an operating nuclear power plant.
       (C) Proximity as it pertains to port security.--If a State 
     or metropolitan statistical area 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 
     paragraphs (2)(B)(iii) and (3)(B)(iii) shall be 1 divided by 
     the total number of States or metropolitan statistical areas 
     that are located within 50 miles of a United States land or 
     water port.
       (D) Proximity to International Borders.--If a State or 
     metropolitan statistical area is located within 50 miles of 
     an international border, the ratio under paragraph (2)(B)(iv) 
     and (3)(B)(iv) shall be 1 divided by the total number of 
     States or metropolitan statistical areas that are located 
     within 50 miles of an international border.
       (E) Proximity to disaster medical assistance teams.--If a 
     State or metropolitan statistical area is located within 50 
     miles of a Disaster Medical Assistance Team, as organized by 
     the National Disaster Medical System through the Department 
     of Public Health, the ratio under paragraphs (2)(B)(v) and 
     (3)(B)(v) shall be 1 divided by the total number of States or 
     metropolitan statistical areas that are located within 50 
     miles of a Disaster Medical Assistance Team.
       (b) Use of Funds.--Grants awarded pursuant to subsection 
     (a) may be used to--
       (1) support police, fire, health, and other emergency 
     personnel by--
       (A) purchasing or upgrading communications systems, 
     protective gear, or hazardous materials detection equipment;
       (B) providing training for emergency responses; and
       (C) providing for expenses related to retention of 
     personnel and overtime;
       (2) improve safeguards against the counterfeiting of 
     official State documents, including--
       (A) the improvement of procedures to obtain proof of 
     identity before issuance of official identification cards; 
     and
       (B) the implementation of biometric identifiers and 
     holograms;
       (3) improve security at chemical plants by--
       (A) strengthening requirements for perimeter security and 
     assisting in meeting such requirements; and
       (B) strengthening requirements for the use and handling of 
     hazardous materials and assisting in meeting such 
     requirements;
       (4) improve security in train and subway cars and stations, 
     on bridges, in tunnels, and in arenas by installing and 
     improving--
       (A) fire and blast protections;
       (B) ventilation systems;
       (C) entrance security;
       (D) sensors to detect chemical and biological weapons; and
       (E) emergency evacuation systems;
       (5) improve security at and around skyscrapers, public 
     monuments, and other major buildings;
       (6) secure food and water supplies, reservoirs, water 
     treatment plants, and distribution systems;
       (7) strengthen protections of other critical networks, 
     including--
       (A) telecommunications;
       (B) electrical power plants and grids; and
       (C) computer networks and databases;
       (8) plan and prepare for a response for chemical or 
     biological attacks, including--
       (A) purchasing, distributing, and storing treatments and 
     preventive measures;
       (B) providing emergency training for health officials; and
       (C) developing public health surveillance systems to 
     identify the disease outbreaks by monitoring ambulance calls, 
     hospital admittance, and other measures;
       (9) establish systems to notify members of the public and 
     appropriate agencies when a threat has emerged and any 
     precautions the public should take;
       (10) establish programs that offer opportunities for 
     members of the community to participate in terrorism 
     preparation and prevention, including neighborhood watch 
     groups; and
       (11) design, review, and improve disaster response systems, 
     enhancing communities' ability to coordinate efforts and 
     share information, and devise and implement a homeland 
     security plan.
       (c) Application.--
       (1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       (2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall--
       (A) describe the activities for which assistance under this 
     section is sought; and
       (B) provide such additional assurances as the Secretary 
     determines to be necessary to ensure that the grantee will 
     use the proceeds of the grant in compliance with subsection 
     (b).
       (d) Authorization and Appropriation.--There are authorized 
     to be appropriated, and are appropriated, $10,000,000,000 for 
     fiscal year 2003 to carry out this section, which shall 
     remain available through September 30, 2004.

     SEC. 5. BUDGET CRISIS RELIEF GRANTS.

       (a) Grants Authorized.--From the amount appropriated under 
     subsection (c) for fiscal year 2003, the Secretary of the 
     Treasury (referred to in this section as the ``Secretary'') 
     shall, as soon as practicable after the date of enactment of 
     this Act, allocate financial assistance to each of the States 
     as follows:
       (1) Grants to States.--
       (A) Allocations based on population.--The Secretary shall 
     allocate $7,500,000,000 among the States on the basis of the 
     relative population of each State, as determined by the 
     Secretary on the basis of the most recent satisfactory data.
       (B) Allocations based on unemployment.--The Secretary shall 
     allocate $7,500,000,000 among the States on the basis of the 
     relative number of unemployed individuals for calendar year 
     2002 in each State, as determined by the Secretary on the 
     basis of the most recent satisfactory data.
       (2) Grants to local government.--
       (A) Allocations based on population.--The Secretary shall 
     allocate an additional $7,500,000,000 among units of general 
     local

[[Page S3325]]

     government within each State on the basis of the relative 
     population of each State and of each such unit within each 
     State, as determined by the Secretary on the basis of the 
     most recent satisfactory data.
       (B) Allocations based on unemployment.--The Secretary shall 
     allocate an additional $7,500,000,000 among units of general 
     local government within each State on the basis of the 
     relative number of unemployed individuals for calendar year 
     2002 in each State and in each such unit within each State, 
     as determined by the Secretary on the basis of the most 
     recent satisfactory data.
       (b) Maintenance of Effort.--A State or unit of general 
     local government, before receiving the proceeds of a grant 
     under this section, shall certify that such State or unit of 
     general local government--
       (1) will maintain its expenditures for elementary, 
     secondary, and higher education at a level equal to not less 
     than the level of such expenditures maintained by the State 
     or unit of general local government for the fiscal year 
     immediately preceding the fiscal year for which the grant is 
     received; and
       (2) will not raise the net tuition, after scholarships and 
     tuition waivers, at public colleges and universities by more 
     than the inflation rate.
       (c) Authorization and Appropriation.--There are authorized 
     to be appropriated, and are appropriated, $30,000,000,000 for 
     fiscal year 2003 to carry out this section.

     SEC 6. TEMPORARY STATE FISCAL RELIEF THROUGH INCREASE IN 
                   MEDICAID FMAP.

       (a) Definitions.--In this section, the following 
     definitions shall apply:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (2) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (b) Permitting Maintenance of Fiscal Year 2002 FMAP for 
     Last 2 Calendar Quarters of Fiscal Year 2003.--
     Notwithstanding any other provision of law, but subject to 
     subsection (f), if the FMAP determined without regard to this 
     section for a State for fiscal year 2003 is less than the 
     FMAP as so determined for fiscal year 2002, the FMAP for the 
     State for fiscal year 2002 shall be substituted for the 
     State's FMAP for the third and fourth calendar quarters of 
     fiscal year 2003, before the application of this section.
       (c) Permitting Maintenance of Fiscal Year 2003 FMAP for 
     Fiscal Year 2004.--Notwithstanding any other provision of 
     law, but subject to subsection (f), if the FMAP determined 
     without regard to this section for a State for fiscal year 
     2004 is less than the FMAP as so determined for fiscal year 
     2003, the FMAP for the State for fiscal year 2003 shall be 
     substituted for the State's FMAP for each calendar quarter of 
     fiscal year 2004, before the application of this section.
       (d) General 2.45 Percentage Points Increase for Last 2 
     Calendar Quarters of Fiscal Year 2003 and Fiscal Year 2004.--
     Notwithstanding any other provision of law, but subject to 
     subsections (f) and (g), for each State for the third and 
     fourth calendar quarters of fiscal year 2003 and each 
     calendar quarter of fiscal year 2004, the FMAP (taking into 
     account the application of subsections (b) and (c)) shall be 
     increased by 2.45 percentage points.
       (e) Increase in Cap on Medicaid Payments To Territories.--
     Notwithstanding any other provision of law, but subject to 
     subsection (g), with respect to the third and fourth calendar 
     quarters of fiscal year 2003 and each calendar quarter of 
     fiscal year 2004, the amounts otherwise determined for Puerto 
     Rico, the Virgin Islands, Guam, the Northern Mariana Islands, 
     and American Samoa under subsections (f) and (g) of section 
     1108 of the Social Security Act (42 U.S.C. 1308) shall each 
     be increased by an amount equal to 4.90 percent of such 
     amounts.
       (f) Scope of Application.--The increases in the FMAP for a 
     State under this section shall apply only for purposes of 
     title XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4); or
       (2) payments under title IV or XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.).
       (g) State Eligibility.--
       (1) In general.--Subject to paragraph (2), a State is 
     eligible for an increase in its FMAP under subsection (d) or 
     an increase in a cap amount under subsection (e) only if the 
     eligibility under its State plan under title XIX of the 
     Social Security Act (including any waiver under such title or 
     under section 1115 of such Act (42 U.S.C. 1315)) is no more 
     restrictive than the eligibility under such plan (or waiver) 
     as in effect on September 2, 2003.
       (2) State reinstatement of eligibility permitted.--A State 
     that has restricted eligibility under its State plan under 
     title XIX of the Social Security Act (including any waiver 
     under such title or under section 1115 of such Act (42 U.S.C. 
     1315)) after September 2, 2003, but prior to the date of 
     enactment of this Act is eligible for an increase in its FMAP 
     under subsection (d) or an increase in a cap amount under 
     subsection (e) in the first calendar quarter (and subsequent 
     calendar quarters) in which the State has reinstated 
     eligibility that is no more restrictive than the eligibility 
     under such plan (or waiver) as in effect on September 2, 
     2003.
       (3) Rule of construction.--Nothing in paragraph (1) or (2) 
     shall be construed as affecting a State's flexibility with 
     respect to benefits offered under the State medicaid program 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) (including any waiver under such title or under section 
     1115 of such Act (42 U.S.C. 1315)).
       (h) Sunset Date.--This section is repealed, effective 
     October 1, 2004.
                                 ______