[Congressional Record Volume 150, Number 3 (Thursday, January 22, 2004)]
[Senate]
[Pages S187-S193]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. CLINTON (for herself, Ms. Mikulski, Mrs. Boxer, Ms. 
        Stabenow, Mr. Schumer, Mr. Sarbanes, Mr. Lautenberg, and Mr. 
        Durbin):
  S. 2021. A bill to provide for a domestic defense fund to improve the 
Nation's homeland defense, and for other purposes; to the Committee on 
Governmental Affairs.

                                S. 2021

       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 ``Domestic 
     Defense Fund Act of 2004''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Grants to States, units of general local government, and Indian 
              tribes; authorizations.
Sec. 5. Statement of activities and review.
Sec. 6. Activities eligible for assistance.
Sec. 7. Allocation and distribution of funds.
Sec. 8. State and regional planning and communication systems.
Sec. 9. High-threat, high-density urban areas.
Sec. 10. Flexible emergency assistance fund.
Sec. 11. Federal preparedness, equipment, and training standards.
Sec. 12. Nondiscrimination in programs and activities.
Sec. 13. Remedies for noncompliance with requirements.
Sec. 14. Reporting requirements.
Sec. 15. Consultation by Attorney General.
Sec. 16. Interstate agreements or compacts; purposes.
Sec. 17. Matching requirements; suspension of requirements for 
              economically distressed areas.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Since the September 11, 2001, terrorist attacks on our 
     country, communities all across America have been on the 
     front lines in the war against terrorism on United States 
     soil.
       (2) Since September 11, 2001, communities have been forced 
     to bear a significant portion of the burden that goes along 
     with the war against terrorism, a burden that local 
     governments should not have to bear 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.--As used in this Act, the following 
     definitions shall apply:
       (1) 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) does not contain within its boundaries any 
     incorporated place, as defined by the United States Bureau of 
     the Census, that has not entered into cooperation agreements 
     with such town or township to undertake or to assist in the 
     performance of homeland security objectives.
       (2) 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.
       (3) 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.
       (4) Metropolitan area.--The term ``metropolitan area'' 
     means a standard metropolitan statistical area as established 
     by the Office of Management and Budget.
       (5) 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.
       (6) 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.
       (7) 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.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of the Department of Homeland Security.
       (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.--
       (1) Basis.--Where appropriate, the definitions listed in 
     subsection (a) shall be based, with respect to any fiscal 
     year, on the most recent data compiled by the United States

[[Page S188]]

     Bureau of the Census and the latest published reports of the 
     Office of Management and Budget available 90 days before the 
     beginning of such fiscal year.
       (2) Modification.--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.--The chief executive 
     officer of a State or a unit of general local government may 
     designate 1 or more public agencies, including existing local 
     public agencies, to undertake activities assisted under this 
     Act.
       (d) Inclusion of Local Governments 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 2004 under section 4, the 
     population of any unit of general local government which is 
     included in that of an urban county shall be included in the 
     population of such urban county for 3 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 3-year period.
       (e) Exclusion of Local Governments From Urban County 
     Population.--
       (1) Notification by urban county.--Any county seeking 
     qualification as an urban county, including any urban county 
     seeking to continue such qualification, shall notify each 
     unit of general local government, located within its 
     geographical boundaries and eligible to elect to have its 
     population excluded from that of the 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.
       (2) Failure of local government to elect to be excluded.--
     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 
     under subsection (d).

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

       (a) Authorization.--The Secretary may award grants to 
     States, units of general local government, and Indian tribes 
     to carry out activities in accordance with this Act.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out section 7--
        (A) $4,000,000,000 for each of the fiscal years 2005 
     through 2008; and
        (B) such sums as may be necessary for fiscal year 2009 and 
     each fiscal year thereafter.
       (2) State, regional, and local planning, training, and 
     communication systems.--There are authorized to be 
     appropriated to carry out section 8--
       (A) $1,000,000,000 for each of the fiscal years 2005 
     through 2008; and
       (B) such sums as may be necessary for fiscal year 2009 and 
     each fiscal year thereafter.
       (3) High-threat, high-density urban areas.--There are 
     authorized to be appropriated to carry out section 9--
       (A) $1,500,000,000 for each of the fiscal years 2005 
     through 2008; and
       (B) such sums as may be necessary for fiscal year 2009 and 
     each fiscal year thereafter.
       (4) Homeland security flexible emergency assistance.--There 
     are authorized to be appropriated to carry out section 10--
       (A) $500,000,000 for each of the fiscal years 2005 through 
     2008; and
       (B) such sums as may be necessary for fiscal year 2009 and 
     each fiscal year thereafter.
       (c) Supplement Not Supplant.--Funds appropriated pursuant 
     to the authority of this section shall be used to supplement 
     and not supplant full Federal funding for other first 
     responder programs, including--
       (1) the Community Oriented Policing Services Program, as 
     authorized under part Q of title I of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd et 
     seq.);
       (2) the Local Law Enforcement Block Grant Program, as 
     authorized under the Violent Crime Control and Law 
     Enforcement Act of 1994 (Public Law 103-322) and described in 
     H.R. 728, as passed by the House of Representatives on 
     February 14, 1995;
       (3) the Edward Byrne Memorial State and Local Law 
     Enforcement Assistance Programs, as authorized under part E 
     of title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3750 et seq.); and
       (4) the Assistance to Firefighters Grant Program, as 
     authorized under section 33 of the Federal Fire Prevention 
     and Control Act of 1974 (15 U.S.C. 2229).

     SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW.

       (a) Application.--
       (1) In general.--A State, metropolitan city, urban county, 
     or unit of general local government desiring a grant under 
     subsection (b) or (i) of section 7 shall submit an 
     application to the Secretary that contains--
       (A) a statement of homeland security objectives and 
     projected use of grant funds; and
       (B) the certifications required under paragraph (2) and, if 
     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, 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 required 
     under this subsection, 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 under this 
     paragraph for the preparation and submission of such 
     statement.
       (3) Certification of enumerated criteria by grantee to 
     secretary.--A grant under section 7 shall not be awarded 
     unless the grantee certifies to the satisfaction of the 
     Secretary that the grantee--
       (A) has developed a homeland security plan 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) 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, not later than 1 year after the date of 
     enactment 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.--Not less than annually, the 
     Secretary shall make such reviews and audits as may be 
     necessary or appropriate to determine--
       (A) in the case of grants awarded under section 7(b), 
     whether the grantee--
       (i) has carried out its activities;
       (ii) where applicable, has carried out its activities and 
     its certifications in accordance with the requirements and 
     the primary objectives of this Act and with other applicable 
     laws; and
       (iii) 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--
       (i) 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;
       (ii) has carried out its certifications in compliance with 
     the requirements of this Act and other applicable laws; and
       (iii) 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.

[[Page S189]]

       (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 subsection (a) and carrying out 
     activities under this Act.

     SEC. 6. ACTIVITIES ELIGIBLE FOR ASSISTANCE.

       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, 
     electrical grids, and other energy infrastructure;
       (B) security for tunnels, bridges, locks, canals, railway 
     systems, airports, land and water ports, and other 
     transportation infrastructure;
       (C) security for oil and gas pipelines and storage 
     facilities;
       (D) security for chemical plants and transportation of 
     hazardous substances;
       (E) security for agriculture infrastructure; and
       (F) security for national icons and Federal facilities that 
     may be terrorist targets;
       (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) Set-Aside for Indian Tribes.--
       (1) In general.--The Secretary shall reserve 1 percent of 
     the amount appropriated for each fiscal year for grants 
     pursuant to section 4(b)(1) (excluding the amounts for 
     activities described in section 6) for grants to Indian 
     tribes.
       (2) Selection of indian tribes.--
       (A) In general.--The Secretary shall distribute 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 Secretary, after notice and public 
     comment, shall promulgate regulations, which establish the 
     criteria described in subparagraph (A).
       (b) Allocation to Metropolitan Cities and Urban Counties.--
       (1) Allocation percentage.--Of the amount remaining after 
     allocations have been made to Indian tribes under subsection 
     (a), the Secretary shall, not later than 60 days after the 
     date on which such funds are appropriated, allocate and 
     directly transfer 70 percent to metropolitan cities and urban 
     counties.
       (2) Entitlement.--Except as otherwise specifically 
     authorized, each metropolitan city and urban county shall be 
     entitled to an annual grant, to the extent authorized beyond 
     fiscal year 2008, from such allocation in an amount not to 
     exceed its basic amount computed pursuant to subsections (c) 
     and (d).
       (c) Computation of Amount Allocated to Metropolitan 
     Cities.--
       (1) Vulnerability and threat factors.--The Secretary shall 
     calculate 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 (including tourist, military, and 
     commuting populations) of the metropolitan city divided by 
     the population of all metropolitan cities;
       (B) the population density of the metropolitan city;
       (C) the proximity of the metropolitan city to international 
     borders;
       (D) the vulnerability of the metropolitan city as it 
     pertains to chemical security;
       (E) the vulnerability of the metropolitan city as it 
     pertains to nuclear security;
       (F) the vulnerability of the metropolitan city as it 
     pertains land and water port security;
       (G) the vulnerability of the metropolitan city as it 
     pertains to the security of energy infrastructure;
       (H) the vulnerability of the metropolitan city as it 
     pertains to the security of inland waterway infrastructure;
       (I) the vulnerability of the metropolitan city as it 
     pertains to the security of freight and passenger rail 
     transportation infrastructure;
       (J) the vulnerability of the metropolitan city as it 
     pertains to the security of aviation infrastructure;
       (K) the vulnerability of the metropolitan city as it 
     pertains to the security of agriculture infrastructure;
       (L) the proximity of the metropolitan city to the nearest 
     national icons and Federal facilities that may be a terrorist 
     target, as determined by the Department of Homeland Security, 
     and the proximity of all metropolitan cities to the nearest 
     national icons and Federal buildings that may be a terrorist 
     target, as determined by the Department of Homeland Security; 
     and
       (M) the threat to the metropolitan city based upon 
     intelligence information from the Department of Homeland 
     Security;
       (2) Clarification of computation ratios.--
       (A) Relative weight of factors.--In determining the 
     weighted average of the ratios under paragraph (1)--
       (i) the factor involving population shall constitute 38 
     percent;
       (ii) the factor involving population density shall 
     constitute 12 percent; and
       (iii) the remaining factors shall be equally weighted.
       (B) Population density.--The metropolitan cities shall be 
     ranked according to the density of their populations in 
     calculating the weighted average of this factor. The 
     population density ratio shall be 1 divided by the total 
     number of metropolitan cities, not to exceed 100.
       (C) Proximity to international borders.--If a metropolitan 
     city is located within 50 miles of an international border, 
     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 international border.
       (D) Vulnerability 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 development by the Environmental 
     Protection Agency or the Department of Homeland Security that 
     captures the same information for the same facilities), the 
     ratio under paragraph (1)(D) shall be 1 divided by the total 
     number of metropolitan cities that are within such a zone, 
     not to exceed 100.
       (E) Vulnerability as it pertains to nuclear security.--If a 
     metropolitan city is located within 50 miles of an operating 
     nuclear powerplant, as identified by the Nuclear Regulatory 
     Commission, the ratio under paragraph (1)(E) 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 powerplant.
       (F) Vulnerability as it pertains to port security.--If a 
     metropolitan city is located within 50 miles of--
       (i) one of the 75 largest United States ports, as stated by 
     the Department of Transportation, Bureau of Transportation 
     Statistics, United States Ports Report by All Land Modes; or
       (ii) one of the 25 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)(F) 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, not to exceed 
     100.
       (G) Vulnerability as it pertains to energy infrastructure 
     security.--If a metropolitan city is among the 100 
     metropolitan cities that are closest to, or within 50 miles 
     of, non-nuclear power generating plants, compressors, and 
     other significant components of critical energy 
     infrastructure as identified by the Department of Energy or 
     the Department of Homeland Security, the ratio under 
     paragraph (1)(G) shall be 1 divided by the total number of 
     metropolitan cities that are located within 50 miles of 
     critical energy infrastructure, not to exceed 100.
       (H) Vulnerability as it pertains to inland waterway 
     infrastructure security.--If a metropolitan city is among the 
     100 metropolitan cities that are closest to, or within 50 
     miles of, the most significant locks, canals, and other 
     components of critical inland waterway system infrastructure 
     as identified by the Department of Transportation, the ratio 
     under paragraph (1)(H) shall be 1 divided by the total number 
     of metropolitan cities that are located within 50 miles of 
     critical inland water infrastructure, not to exceed 100.
       (I) Vulnerability as it pertains to rail transportation 
     infrastructure security.--If a metropolitan city is among the 
     100 metropolitan cities that are closest to, or within 50 
     miles of, the largest railroad hubs and other significant 
     components of critical freight and passenger rail 
     infrastructure, as identified by the Department of 
     Transportation, the ratio under paragraph (1)(I) shall be 1 
     divided by the total number of metropolitan cities that are 
     located within 50 miles of critical inland water 
     infrastructure, not to exceed 100.
       (J) Vulnerability as it pertains to aviation infrastructure 
     security.--If a metropolitan city is among the 100 
     metropolitan cities that are closest to, or within 50 miles 
     of, major passenger or cargo airports that

[[Page S190]]

     are significant components of the Nation's air transportation 
     infrastructure as identified by the Department of 
     Transportation, the ratio under paragraph (1)(J) shall be 1 
     divided by the total number of metropolitan cities that are 
     located within 50 miles of critical aviation transportation 
     infrastructure, not to exceed 100.
       (K) Vulnerability as it pertains to agriculture 
     infrastructure security.--If a metropolitan city is among the 
     100 metropolitan cities that are closest to, or within 50 
     miles of, major feed yards, food processing facilities, and 
     other significant components of the nation's agriculture 
     infrastructure, as defined and determined by the Department 
     of Agriculture and the Department of Homeland Security, the 
     ratio under paragraph (1)(K) shall be 1 divided by the total 
     number of metropolitan cities that are located within 50 
     miles of critical agriculture infrastructure, not to exceed 
     100.
       (L) Proximity to national icons and federal buildings.--If 
     a metropolitan city is among the 100 metropolitan cities that 
     are closest to, or within 50 miles of, national icons and 
     Federal buildings that the Department of Homeland Security 
     determines are most vulnerable with respect to a terrorist 
     attack, the ratio under paragraph (1)(L) shall be 1 divided 
     by the total number of metropolitan cities that are located 
     within 50 miles of such icons or Federal buildings, not to 
     exceed 100.
       (M) Intelligence.--If a metropolitan city is among the 100 
     metropolitan cities that have been identified by the 
     Department of Homeland Security as being special alert or 
     heightened alert status for the longest periods of time, the 
     ratio under paragraph (1)(M) shall be 1 divided by the total 
     number of metropolitan cities that have been identified by 
     the Department of Homeland Security, not to exceed 100.
       (d) Computation of Amount Allocated to Urban Counties.--
       (1) Vulnerability and threat factors.--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 (including tourist, military, and 
     commuting populations) of the urban county divided by the 
     population of all urban counties;
       (B) the population density of the urban county;
       (C) the proximity of the urban county to international 
     borders;
       (D) the vulnerability of the urban county as it pertains to 
     chemical security;
       (E) the vulnerability of the urban county as it pertains to 
     nuclear security;
       (F) the vulnerability of the urban county as it pertains 
     land and water port security;
       (G) the vulnerability of the urban county as it pertains to 
     the security of energy infrastructure;
       (H) the vulnerability of the urban county as it pertains to 
     the security of inland waterway infrastructure;
       (I) the vulnerability of the urban county as it pertains to 
     the security of freight and passenger rail transportation 
     infrastructure;
       (J) the vulnerability of the urban county as it pertains to 
     the security of aviation infrastructure;
       (K) the vulnerability of the urban county as it pertains to 
     the security of agriculture infrastructure;
       (L) the proximity of the urban county to the nearest 
     national icons and Federal facilities that may be a terrorist 
     target, as determined by the Department of Homeland Security, 
     and the proximity of all urban counties to the nearest 
     national icons and Federal buildings that may be a terrorist 
     target, as determined by the Department of Homeland Security; 
     and
       (M) the threat to the urban county based upon intelligence 
     information from the Department of Homeland Security;
       (2) Clarification of computation ratios.--
       (A) Relative weight of factors.--In determining the 
     weighted average of the ratios under paragraph (1)--
       (i) the factor involving population shall constitute 38 
     percent;
       (ii) the factor involving population density shall 
     constitute 12 percent; and
       (iii) the remaining factors shall be equally weighted.
       (B) Population density.--The population density ratio shall 
     be 1 divided by the total number of urban counties, not to 
     exceed 100. The urban counties shall be ranked according to 
     the density of their populations in calculating the weighted 
     average of this factor.
       (C) Proximity to international borders.--If an urban county 
     is located within 50 miles of an international border, 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 international border.
       (D) Vulnerability as it pertains to chemical security.--If 
     an 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 development by the Environmental 
     Protection Agency or the Department of Homeland Security that 
     captures the same information for the same facilities), the 
     ratio under paragraph (1)(D) shall be 1 divided by the total 
     number of urban counties that are within such a zone, not to 
     exceed 100.
       (E) Vulnerability as it pertains to nuclear security.--If 
     an 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)(E) 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.
       (F) Vulnerability as it pertains to port security.--If an 
     urban county is located within 50 miles of--
       (i) one of the 75 largest United States ports, as stated by 
     the Department of Transportation, Bureau of Transportation 
     Statistics, United States Ports Report by All Land Modes; or
       (ii) one of the 25 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)(F) 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, not to exceed 
     100.
       (G) Vulnerability as it pertains to energy infrastructure 
     security.--If an urban county is among the 100 urban counties 
     that are closest to, or within 50 miles of, non-nuclear power 
     generating plants, compressors, and other significant 
     components of critical energy infrastructure as identified by 
     the Department of Energy or the Department of Homeland 
     Security, the ratio under paragraph (1)(G) shall be 1 divided 
     by the total number of urban counties that are located within 
     50 miles of critical energy infrastructure, not to exceed 
     100.
       (H) Vulnerability as it pertains to inland waterway 
     infrastructure security.--If an urban county is among the 100 
     urban counties that are closest to, or within 50 miles of, 
     the most significant locks, canals, and other components of 
     critical inland waterway system infrastructure as identified 
     by the Department of Transportation, the ratio under 
     paragraph (1)(H) shall be 1 divided by the total number of 
     urban counties that are located within 50 miles of critical 
     inland water infrastructure, not to exceed 100.
       (I) Vulnerability as it pertains to rail transportation 
     infrastructure security.--If an urban county is among the 100 
     urban counties that are closest to, or within 50 miles of, 
     the largest railroad hubs and other significant components of 
     critical freight and passenger rail infrastructure, as 
     identified by the Department of Transportation, the ratio 
     under paragraph (1)(I) shall be 1 divided by the total number 
     of urban counties that are located within 50 miles of 
     critical inland water infrastructure, not to exceed 100.
       (J) Vulnerability as it pertains to aviation infrastructure 
     security.--If an urban county is among the 100 urban counties 
     that are closest to, or within 50 miles of, major passenger 
     or cargo airports that are significant components of the 
     Nation's air transportation infrastructure as identified by 
     the Department of Transportation, the ratio under paragraph 
     (1)(J) shall be 1 divided by the total number of urban 
     counties that are located within 50 miles of critical 
     aviation transportation infrastructure, not to exceed 100.
       (K) Vulnerability as it pertains to agriculture 
     infrastructure security.--If urban county is among the 100 
     urban counties that are closest to, or within 50 miles of, 
     major feed yards, food processing facilities, and other 
     significant components of the Nation's agriculture 
     infrastructure, as defined and determined by the Department 
     of Agriculture and the Department of Homeland Security, the 
     ratio under paragraph (1)(K) shall be 1 divided by the total 
     number of urban counties that are located within 50 miles of 
     critical agriculture infrastructure, not to exceed 100.
       (L) Proximity to national icons and federal buildings.--If 
     an urban county is among the 100 urban counties that are 
     closest to, or within 50 miles of, national icons and Federal 
     buildings that the Department of Homeland Security determines 
     are most vulnerable with respect to a terrorist attack, the 
     ratio under paragraph (1)(L) shall be 1 divided by the total 
     number of urban counties that are located within 50 miles of 
     such icons or Federal buildings, not to exceed 100.
       (M) Intelligence.--If an urban county is among the 100 
     urban counties that have been identified by the Department of 
     Homeland Security as being special alert or heightened alert 
     status for the longest periods of time, the ratio under 
     paragraph (1)(M) shall be 1 divided by the total number of 
     urban counties that have been identified by the Department of 
     Homeland Security, not to exceed 100.
       (e) Exclusions.--
       (1) In general.--In computing amounts or exclusions under 
     subsection (d) with respect to any urban county, units of 
     general local government located in the county that are not 
     included in the population of the county in determining the 
     eligibility of the county to receive a grant under this 
     subsection shall be excluded, except that any independent 
     city (as defined by the Bureau of the Census) shall be 
     included if it--
       (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

[[Page S191]]

     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) for that 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, 2004.
       (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 under paragraph (2), 
     any amounts allocated to a metropolitan city or an urban 
     county under this section that are not received by the city 
     or county for a fiscal year because of failure to meet the 
     requirements of subsection (a) or (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 subsection 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 to any metropolitan 
     city the responsibility 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 under subsections 
     (a) and (b), the Secretary shall allocate 30 percent 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) States.--A State shall distribute amounts it receives 
     under this subsection to units of general local government 
     located in nonqualifying areas of the State in such manner 
     and at such time as the Secretary shall prescribe, consistent 
     with the statement submitted under section 5(a), and not 
     later than 45 days after the date on which the State receives 
     such amounts from the Federal Government.
       (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.--
       (A) In general.--Except as provided under subparagraph (B), 
     each State shall be allocated, for each fiscal year 
     authorized under this Act and under this section, the greater 
     of--
       (i) 0.75 percent of the total amount appropriated in the 
     fiscal year for grants to States under this section; or
       (ii) the amount the State would otherwise be allocated 
     under the formula set forth in this section.
       (B) Exception.--Notwithstanding subparagraph (A), the 
     United States Virgin Islands, American Samoa, Guam, and the 
     Northern Mariana Islands shall each be allocated 0.25 percent 
     of the total amount appropriated in each fiscal year for 
     grants to States under this section.
       (5) Administration.--
       (A) In general.--Each State shall be responsible for the 
     administration of all funds received and distributed under 
     paragraph (1). Except as provided under subparagraph (B), the 
     State shall pay for all administrative expenses incurred by 
     the State in carrying out its responsibilities under this 
     Act.
       (B) Federal share.--From the amounts received by each State 
     for distribution in nonqualifying areas, the State may deduct 
     an amount to pay--
       (i) the first $150,000 of its administrative expenses under 
     this subsection; and
       (ii) 50 percent of any State administrative expenses under 
     this subsection in excess of $150,000, which amount shall not 
     exceed 2 percent of the amount received by the State under 
     paragraph (1).
       (C) Distribution.--Any distribution by the Secretary under 
     paragraph (1) shall be made in accordance with--
       (i) determinations of the Secretary;
       (ii) statements submitted and the other requirements under 
     section 5 (except for subsection (c));
       (iii) regulations and procedures prescribed by the 
     Secretary.
       (D) 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 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 
     use not more than 1 percent to provide technical assistance 
     to local governments.

[[Page S192]]

       (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 
     prescribe such qualification or submission dates as the 
     Secretary determines to be 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 AND COMMUNICATION 
                   SYSTEMS.

       (a) Allocations.--From the amounts appropriated pursuant to 
     section 4(b)(2), the Secretary shall allocate $1,000,000,000 
     to States, regional cooperations, and units of general local 
     government for--
       (1) homeland defense planning within the States;
       (2) providing increased security through additional first 
     responder personnel;
       (3) purchasing and refurbishing personal protective 
     equipment for first responder personnel;
       (4) homeland defense planning within the regions;
       (5) the development and maintenance of Statewide training 
     facilities and homeland security best-practices 
     clearinghouses; and
       (6) 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) $500,000,000 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) $400,000,000 shall be used by the States and units of 
     general local government 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.--Amounts allocated to States under this 
     section 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 under section 
     7(i)(4) relating to a minimum amount shall apply to amounts 
     allocated to States under this section.
       (3) Local communications systems.--
       (A) In general.--Not less than 50 percent of the amounts 
     allocated under subsection (b)(4) shall be used for the 
     development and maintenance of local communications systems.
       (B) Distribution of funds.--Each State shall distribute 
     amounts reserved for local communications systems in that 
     State under subparagraph (A) to units of general local 
     government not later than 45 days after the State receives 
     such amounts from the Federal Government.
       (d) Allocations to Regional Cooperations.--Funds allocated 
     under subsection (b)(2) shall be allocated to regional 
     cooperations and regional, multistate, or intrastate 
     authorities, based upon the population of the areas covered 
     by each regional cooperative.

     SEC. 9. HIGH-THREAT, HIGH-DENSITY URBAN AREAS.

       (a) Allocations.--
       (1) In general.--From the amounts appropriated pursuant to 
     section 4(b)(3), the Secretary shall allocate $1,500,000,000 
     for discretionary grants to high-threat, high-density urban 
     areas, as determined by the Secretary, and for the protection 
     of critical infrastructure.
       (2) Distribution.--Grant funds awarded under this section 
     shall be transferred directly to high-threat, high-density 
     urban areas not later than 60 days after the date on which 
     funds are appropriated pursuant to section 4(b)(3).
       (b) Selection Criteria.--In selecting grantees under this 
     section, the Secretary shall consider--
       (1) credible threat;
       (2) vulnerability;
       (3) the presence of critical infrastructure, including 
     infrastructure described in section 7;
       (4) population;
       (5) population density; and
       (6) identified needs of public agencies.
       (c) Homeland Security Plan.--Each high-threat, high-density 
     urban area awarded a grant under this section shall submit a 
     homeland security plan to the State in which it is located 
     and to the Secretary that describes the intended use of grant 
     funds received under this section.
       (d) Minimum Amount.--Section 1014(c)(3) of the USA PATRIOT 
     ACT (42 U.S.C. 3711(c)(3)) and section 7(i)(4) of this Act 
     shall not apply to funds awarded under this section.

     SEC. 10. FLEXIBLE EMERGENCY ASSISTANCE FUND.

       (a) In General.--From the amounts appropriated pursuant to 
     section 4(b)(4), $500,000,000 shall be used to create a 
     flexible emergency assistance fund, from which the Secretary 
     shall provide funds directly to State and units of local 
     government that incur extraordinary homeland security costs.
       (b) Release of Funds.--The Secretary may release emergency 
     assistance funds to a State or local community as the 
     Secretary determines to be appropriate, including--
       (1) when the Secretary determines that a State or local 
     community may be the specific target of a terrorist threat;
       (2) when a local community is the venue of a high profile 
     trial related to homeland security or terrorism;
       (3) when the State or local community has been asked to 
     assist in a Federal investigation concerning homeland 
     security or terrorism; and
       (4) when an agency of the Federal Government has requested 
     the State or local community to assist that agency in 
     performing homeland security functions.
       (c) Reimbursements.--The Secretary may disburse flexible 
     emergency assistance funds to reimburse States and units of 
     general local government for increased personnel costs 
     associated with the activation of first responders who serve 
     in the Reserves or National Guard.
       (d) Minimum Amount.--Section 1014(c)(3) of the USA PATRIOT 
     ACT (42 U.S.C. 3711(c)(3)) and section 7(i)(4) of this Act 
     shall not apply to funds awarded under this section.

     SEC. 11. FEDERAL PREPAREDNESS, EQUIPMENT, AND TRAINING 
                   STANDARDS.

       (a) In General.--The Department of Homeland Security shall 
     develop national homeland security preparedness, first 
     responder training, and equipment standards, and best 
     practices to facilitate the most effective and efficient use 
     of funds authorized under this Act.
       (b) Consultation.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall develop the 
     standards described in subsection (a) in consultation with 
     first responders, States, local communities, nongovernmental 
     homeland security experts, and such other persons and 
     organizations as the Secretary determines to be appropriate.
       (c) Reports.--The Secretary shall submit a report to 
     Congress on the progress made in developing the standards and 
     best practices described in subsection (a)--
       (1) not later than 90 days after the date of enactment of 
     this Act; and
       (2) not later than 180 days after the date of enactment of 
     this Act.

     SEC. 12. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

       (a) In General.--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.
       (b) Age or Handicap.--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. 13. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS.

       If the Secretary finds, after reasonable notice and 
     opportunity for a 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. 14. 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 
     containing--
       (1) a description of the progress made in accomplishing the 
     objectives under 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 may require 
     recipients of assistance under this Act to submit such 
     reports and other information as may be necessary in order 
     for the Secretary to comply with subsection (a).

[[Page S193]]

     SEC. 15. 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. 16. INTERSTATE AGREEMENTS OR COMPACTS; PURPOSES.

       The consent of 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--
       (1) 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
       (2) to establish such agencies, joint or otherwise, that 
     the States consider desirable for making such agreements and 
     compacts effective.

     SEC. 17. MATCHING REQUIREMENTS; SUSPENSION OF REQUIREMENTS 
                   FOR ECONOMICALLY DISTRESSED AREAS.

       (a) Matching Requirement.--Grant recipients shall 
     contribute, from funds other than those received under this 
     Act, an amount equal to 10 percent of the total funds 
     received under this Act, which shall be used in accordance 
     with the grantee's statement of homeland security objectives.
       (b) Waiver for Economic Distress.--The Secretary shall 
     waive the matching requirement under subsection (a) for grant 
     recipients that the Secretary determines to be economically 
     distressed.
                                 ______