I 

108TH CONGRESS 

1ST SESSION H. R. 2570

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. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2003

Mr. DEFAZIO (for himself, Mr. MARKEY, Mr. FRANK of Massachusetts, Mr. 

CARDIN, Ms. SLAUGHTER, Mrs. CHRISTENSEN, Mr. ETHERIDGE, Ms. 

DELAURO, Mr. CASE, Mr. GRIJALVA, Mr. MCDERMOTT, Mr. CROWLEY, 

Mr. BELL, Mr. BALLANCE, Mr. RAHALL, Mr. MCGOVERN, Ms. LINDA T. 

SA ́NCHEZ of California, Mr. DOYLE, Ms. JACKSON-LEE of Texas, Mr. 

STARK, Ms. CARSON of Indiana, Mrs. MALONEY, Mr. HASTINGS of Florida, Ms. SOLIS, Ms. HOOLEY of Oregon, Mr. SANDERS, Mr. LIPINSKI, 

Mr. COSTELLO, Mr. GUTIERREZ, Mr. GEORGE MILLER of California, Mr. 

FARR, Mr. THOMPSON of California, Mr. KUCINICH, Mrs. DAVIS of California, Mr. BLUMENAUER, Mr. HINCHEY, Mr. CAPUANO, Mr. TIERNEY, 

Mr. KENNEDY of Rhode Island, Mr. HONDA, Ms. BERKLEY, Ms. KAPTUR, and Ms. BALDWIN) introduced the following bill; which was referred 

to the Committee on Transportation and Infrastructure, and in addition 

to the Committees on Energy and Commerce, and the Judiciary, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To 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 
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condition (Code Red) declared by the Secretary of Homeland Security, that are in excess of normal operating 

expenses.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Threat Alert Re5 imbursement (STAR) Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) States and local governments are acting on 

9 behalf of the Federal Government to protect and de10 fend our homeland. 

11 (2) States and local governments are in the 

12 midst of the worst budget crisis since the Great De13 pression. 

14 (3) Cash-strapped States and local governments 

15 are further burdened by expenditures relating to in16 creased homeland security threat alert mitigation. 

17 (4) According to a survey by the United States 

18 Conference of Mayors, cities nationwide with popu19 lations of between 30,000 and 8,000,0000 are 

20 spending more than $70,000,000 per week on addi21 tional homeland security measures during the effec22 tive period of a high threat condition (Code Orange) 
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1 or severe threat condition (Code Red) declared by 

2 the Secretary of Homeland Security. 

3 (5) These direct costs are in addition to exist4 ing homeland security spending (or spending com5 mitments) since the terrorist attacks on New York 

6 City and the Washington metropolitan area on Sep7 tember 11, 2001. 

8 SEC. 3. REIMBURSEMENT. 

9 (a) IN GENERAL.—The Secretary of Homeland Secu10 rity shall pay to a State in accordance with this section 

11 reimbursement for the direct expenses and losses incurred 

12 by State or local government entities of the State in the 

13 course of duty during the effective period of an increased 

14 threat alert, that are in excess of normal operating ex15 penses. 

16 (b) SUBMISSION OF REQUESTS.—

17 (1) IN GENERAL.—The Governor of any State 

18 may submit to the Secretary of Homeland Security 

19 a request for reimbursement under this section—

20 (A) by not later than 90 days after the 

21 declaration of an elevated threat condition with 

22 respect to which the reimbursement is re23 quested; and 

24 (B) in the case of such a condition that is 

25 in effect for more than 90 days, at such times 
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1 thereafter as may be prescribed by the Sec2 retary. 

3 (2) SUPPORTING INFORMATION.—A Governor 

4 shall include in a request under this subsection such 

5 supporting information as the Secretary may pre6 scribe. 

7 (3) APPLICATION BY INTERNET.—The Sec8 retary shall provide for the submission of requests 

9 under this subsection by use of the Internet. 

10 (c) DETERMINATION AND PAYMENT.—

11 (1) IN GENERAL.—Upon receipt of a request 

12 under subsection (b), the Secretary shall—

13 (A) determine the amount of direct ex14 penses and losses that may be reimbursed 

15 under this section pursuant to the request; and 

16 (B) pay that amount to the State. 

17 (2) SUBJECT TO APPROPRIATIONS.—The re18 quirement to make payments under this section is 

19 subject to the availability of appropriations for such 

20 payments. 

21 (3) CONGRESSIONAL NOTIFICATION.—Before 

22 making any payment to a State under this section 

23 in an amount greater than $20,000,000, the Sec24 retary shall notify—
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1 (A) the Select Committee on Homeland Se2 curity of the House of Representatives; and 

3 (B) the Committee on Governmental Af4 fairs of the Senate. 

5 SEC. 4. DEFINITIONS. 

6 In this Act: 

7 (1) DIRECT EXPENSES AND LOSSES.—The term 

8 ‘‘direct expenses and losses’’—

9 (A) means expenses and losses that would 

10 not have been incurred if there had not been in 

11 effect an elevated threat condition; and 

12 (B) includes (subject to subparagraph 

13 (A))—

14 (i) salaries for specially employed per15 sonnel; 

16 (ii) overtime pay; 

17 (iii) the cost of supplies expended; and 

18 (iv) the depreciated value of equip19 ment destroyed or damaged; and 

20 (C) does not include—

21 (i) the costs of ordinary wages of per22 sonnel of a State or local government enti23 ty; 

24 (ii) overhead costs; or 
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1 (iii) depreciation (if calculated in ways 

2 other than use during an emergency). 

3 (2) IN EXCESS OF NORMAL OPERATING EX4 PENSES.—The term ‘‘in excess of normal operating 

5 expenses’’—

6 (A) means costs, losses, and expenses 

7 that—

8 (i) are not ordinarily and necessarily 

9 associated with the maintenance, adminis10 tration, and day-to-day operations of a 

11 State or local government entity; and 

12 (ii) would not have been incurred if 

13 there were not in effect an elevated threat 

14 condition; 

15 (B) includes (subject to subparagraph 

16 (A)—

17 (i) administrative expenses; 

18 (ii) costs of employee benefits, insur19 ance, disability, death, litigation, or health 

20 care; and 

21 (iii) costs associated with obtaining a 

22 payment under this Act. 

23 (3) STATE OR LOCAL GOVERNMENT ENTITY.—

24 The term ‘‘State or local government entity’’ means 

25 any agency or authority of—
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1 (A) a State government; or 

2 (B) any county, city, or other local govern3 mental administrative body that has fiscal re4 sponsibility and budgetary authority over the 

5 provision of governmental services. 

6 (4) ELEVATED THREAT CONDITION.—The term 

7 ‘‘elevated threat condition’’ means any high threat 

8 condition (Code Orange) or severe threat condition 

9 (Code Red) declared by the Secretary of Homeland 

10 Security. 

11 (5) NORMAL OPERATING COSTS.—The term 

12 ‘‘normal operating costs’’ means costs ordinarily in13 curred in performing functions of a State or local 

14 government entity.

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