To direct the Secretary of Homeland Security to reimburse States for direct expenses and losses incurred by State and local government entities during the effective period of a high threat condition (Code Orange) or severe threat condition (Code Red) declared by the Secretary of Homeland Security, that are in excess of normal operating expenses.

Summary: State Threat Alert Reimbursement (STAR) Act of 2003 - Requires the Secretary of Homeland Security to reimburse a State for direct expenses and losses that exceed normal operating expenses incurred by State or local government entities in the course of duty during the effective period of an increased threat alert.

Allows the Governor of any State to submit a request for reimbursement by not later than 90 days after the declaration of the elevated threat condition. Instructs the Secretary to provide for the submission of requests by use of the Internet.

Requires the Secretary to notify the Select Committee on Homeland Security of the House of Representatives and the Committee on Governmental Affairs of the Senate before making any payment of greater than $20 million to a State under this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Threat Alert Reimbursement 
(STAR) Act of 2003''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) States and local governments are acting on behalf of 
        the Federal Government to protect and defend our homeland.
            (2) States and local governments are in the midst of the 
        worst budget crisis since the Great Depression.
            (3) Cash-strapped States and local governments are further 
        burdened by expenditures relating to increased homeland 
        security threat alert mitigation.
            (4) According to a survey by the United States Conference 
        of Mayors, cities nationwide with populations of between 30,000 
        and 8,000,0000 are spending more than $70,000,000 per week on 
        additional homeland security measures during the effective 
        period of a high threat condition (Code Orange) or severe 
        threat condition (Code Red) declared by the Secretary of 
        Homeland Security.
            (5) These direct costs are in addition to existing homeland 
        security spending (or spending commitments) since the terrorist 
        attacks on New York City and the Washington metropolitan area 
        on September 11, 2001.

SEC. 3. REIMBURSEMENT.

    (a) In General.--The Secretary of Homeland Security shall pay to a 
State in accordance with this section reimbursement for the direct 
expenses and losses incurred by State or local government entities of 
the State in the course of duty during the effective period of an 
increased threat alert, that are in excess of normal operating 
expenses.
    (b) Submission of Requests.--
            (1) In general.--The Governor of any State may submit to 
        the Secretary of Homeland Security a request for reimbursement 
        under this section--
                    (A) by not later than 90 days after the declaration 
                of an elevated threat condition with respect to which 
                the reimbursement is requested; and
                    (B) in the case of such a condition that is in 
                effect for more than 90 days, at such times thereafter 
                as may be prescribed by the Secretary.
            (2) Supporting information.--A Governor shall include in a 
        request under this subsection such supporting information as 
        the Secretary may prescribe.
            (3) Application by internet.--The Secretary shall provide 
        for the submission of requests under this subsection by use of 
        the Internet.
    (c) Determination and Payment.--
            (1) In general.--Upon receipt of a request under subsection 
        (b), the Secretary shall--
                    (A) determine the amount of direct expenses and 
                losses that may be reimbursed under this section 
                pursuant to the request; and
                    (B) pay that amount to the State.
            (2) Subject to appropriations.--The requirement to make 
        payments under this section is subject to the availability of 
        appropriations for such payments.
            (3) Congressional notification.--Before making any payment 
        to a State under this section in an amount greater than 
        $20,000,000, the Secretary shall notify--
                    (A) the Select Committee on Homeland Security of 
                the House of Representatives; and
                    (B) the Committee on Governmental Affairs of the 
                Senate.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Direct expenses and losses.--The term ``direct expenses 
        and losses''--
                    (A) means expenses and losses that would not have 
                been incurred if there had not been in effect an 
                elevated threat condition; and
                    (B) includes (subject to subparagraph (A))--
                            (i) salaries for specially employed 
                        personnel;
                            (ii) overtime pay;
                            (iii) the cost of supplies expended; and
                            (iv) the depreciated value of equipment 
                        destroyed or damaged; and
                    (C) does not include--
                            (i) the costs of ordinary wages of 
                        personnel of a State or local government 
                        entity;
                            (ii) overhead costs; or
                            (iii) depreciation (if calculated in ways 
                        other than use during an emergency).
            (2) In excess of normal operating expenses.--The term ``in 
        excess of normal operating expenses''--
                    (A) means costs, losses, and expenses that--
                            (i) are not ordinarily and necessarily 
                        associated with the maintenance, 
                        administration, and day-to-day operations of a 
                        State or local government entity; and
                            (ii) would not have been incurred if there 
                        were not in effect an elevated threat 
                        condition;
                    (B) includes (subject to subparagraph (A)--
                            (i) administrative expenses;
                            (ii) costs of employee benefits, insurance, 
                        disability, death, litigation, or health care; 
                        and
                            (iii) costs associated with obtaining a 
                        payment under this Act.
            (3) State or local government entity.--The term ``State or 
        local government entity'' means any agency or authority of--
                    (A) a State government; or
                    (B) any county, city, or other local governmental 
                administrative body that has fiscal responsibility and 
                budgetary authority over the provision of governmental 
                services.
            (4) Elevated threat condition.--The term ``elevated threat 
        condition'' means any high threat condition (Code Orange) or 
        severe threat condition (Code Red) declared by the Secretary of 
        Homeland Security.
            (5) Normal operating costs.--The term ``normal operating 
        costs'' means costs ordinarily incurred in performing functions 
        of a State or local government entity.