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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4333 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4333

To provide for homeland security grant coordination and simplification, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2004

Ms. Hooley of Oregon (for herself, Mr. Stenholm, Mr. Case, Mr. Emanuel, 
  Mr. Grijalva, Mr. Farr, Mr. Hoeffel, Mr. McIntyre, Mr. DeFazio, Mr. 
 Sandlin, Mr. Towns, and Ms. Lee) introduced the following bill; which 
   was referred to the Select Committee on Homeland Security, and in 
   addition to the Committees on Transportation and Infrastructure, 
    Judiciary, Energy and Commerce, and Science, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
To provide for homeland security grant coordination and simplification, 
                        and for other purposes.

    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 Security Grant Enhancement 
Act of 2004''.

SEC. 2. INTERAGENCY COMMITTEE TO COORDINATE AND STREAMLINE HOMELAND 
              SECURITY GRANT PROGRAMS.

    (a) In General.--The Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.) is amended by inserting after section 801 the following:

``SEC. 802. INTERAGENCY COMMITTEE TO COORDINATE AND STREAMLINE HOMELAND 
              SECURITY GRANT PROGRAMS.

    ``(a) Establishment.--There is established an Interagency Committee 
to Coordinate and Streamline Homeland Security Grant Programs (in this 
subtitle referred to as the `Interagency Committee'), which shall--
            ``(1) report all findings to the Information Clearinghouse 
        established under section 801(c);
            ``(2) consult with State and local governments and 
        emergency response providers regarding their homeland security 
        needs and capabilities;
            ``(3) advise the Secretary on the development of 
        performance measures for homeland security grant programs and 
        the national strategy for homeland security;
            ``(4) not later than 60 days after the effective date of 
        the Homeland Security Grant Enhancement Act of 2004--
                    ``(A) compile a list of homeland security 
                assistance programs and their reporting requirements, 
                including--
                            ``(i) those administered by the Office for 
                        Domestic Preparedness, such as--
                                    ``(I) the State Homeland Security 
                                Grant Program;
                                    ``(II) high threat urban area 
                                grants;
                                    ``(III) critical infrastructure 
                                security grants;
                                    ``(IV) research and development 
                                grant programs;
                                    ``(V) training and technical 
                                assistance grants; and
                                    ``(VI) other discretionary or and 
                                assistance grant programs;
                            ``(ii) Federal Emergency Management Agency 
                        assistance programs, such as--
                                    ``(I) the Assistance to 
                                Firefighters Grant Program;
                                    ``(II) Citizen Corps;
                                    ``(III) grants for emergency 
                                operations centers;
                                    ``(IV) interoperable communications 
                                grants;
                                    ``(V) Urban Search and Rescue task 
                                forces; and
                                    ``(VI) other Federal Emergency 
                                Management Agency assistance programs, 
                                except those grants intended to 
                                reimburse States, localities, and other 
                                applicants for costs resulting from 
                                disasters or emergencies declared under 
                                to the Disaster Relief Act of 1974 (42 
                                U.S.C. 5121 et seq.);
                            ``(iii) Transportation Security 
                        Administration assistance programs, such as 
                        port security grants;
                            ``(iv) Department of Justice assistance 
                        programs, such as--
                                    ``(I) the Local Law Enforcement 
                                Block Grant;
                                    ``(II) the Byrne Memorial Formula 
                                Grant Program; and
                                    ``(III) the Community Oriented 
                                Policing Services program;
                            ``(v) Department of Health and Human 
                        Services assistance programs, such as--
                                    ``(I) the Public Health 
                                Bioterrorism Preparedness program, 
                                administered by the Centers for Disease 
                                Control and Prevention; and
                                    ``(II) the Hospital Bioterrorism 
                                Program, administered by the Health 
                                Resources and Services Administration;
                            ``(vi) related Federal assistance programs, 
                        such as--
                                    ``(I) the Hazardous Materials 
                                Emergency Preparedness Program of the 
                                Department of Transportation; and
                                    ``(II) the water security 
                                assistance programs administered by the 
                                Environmental Protection Agency; and
                            ``(vii) any related grant or assistance 
                        program, as determined by the Interagency 
                        Committee; and
                    ``(B) identify all homeland security planning 
                requirements contained in homeland security emergency 
                preparedness, and public safety programs administered 
                by Federal agencies, including--
                            ``(i) terrorism preparedness plans, such as 
                        those required by the Office for Domestic 
                        Preparedness and other entities within the 
                        Department;
                            ``(ii) all hazards emergency preparedness 
                        plans, such as those required in the Emergency 
                        Management Performance Grants administered by 
                        the Federal Emergency Management Agency;
                            ``(iii) bioterrorism response plans, such 
                        as those required in bioterrorism preparedness 
                        programs administered by the Department of 
                        Health and Human Services;
                            ``(iv) hazardous materials response plans, 
                        such as those required by the Environmental 
                        Protection Agency and the Department of 
                        Transportation;
                            ``(v) critical infrastructure security 
                        plans, such as those required by--
                                    ``(I) the Transportation Security 
                                Administration;
                                    ``(II) the Environmental Protection 
                                Agency;
                                    ``(III) the Department of 
                                Transportation; and
                                    ``(IV) the Nuclear Regulatory 
                                Commission;
                            ``(vi) law enforcement and public safety 
                        plans administered by the Department of 
                        Justice, such as those required by--
                                    ``(I) the Local Law Enforcement 
                                Block Grant;
                                    ``(II) the Byrne Memorial Formula 
                                Grant Program; and
                                    ``(III) the Community Oriented 
                                Policing Services program; and
                            ``(vii) any other planning requirement 
                        identified by the Interagency Committee;
            ``(5) not later than 120 days after the effective date of 
        the Homeland Security Grant Enhancement Act of 2004, review--
                    ``(A) all application, reporting, and other 
                administrative requirements contained in grant programs 
                under paragraph (4)(A) and report all redundant and 
                duplicative requirements to the appropriate committees 
                of Congress and the agencies represented in the 
                Interagency Committee; and
                    ``(B) all homeland security planning and other 
                administrative requirements under paragraph (4)(B) and 
                report all redundant and duplicative requirements to 
                the appropriate committees of Congress and the agencies 
                represented in the Interagency committee;
            ``(6) not later than 150 days after the effective date of 
        the Homeland Security Grant Enhancement Act of 2004, provide 
        recommendations to--
                    ``(A) the agencies with the requirements identified 
                under paragraph (4)(A) to streamline and standardize 
                application, reporting, and administrative requirements 
                to eliminate duplication and promote coordination of 
                homeland security planning grants; and
                    ``(B) the agencies involved with the grant programs 
                under paragraph (4)(B) to streamline and standardize 
                planning requirements to eliminate duplication and 
                promote coordination; and
            ``(7) not later than 250 days after the effective date of 
        the Homeland Security Grant Enhancement Act of 2004, issue a 
        report to Congress regarding its actions under this subsection.
    ``(b) Membership.--The Interagency Committee shall be composed of a 
representative of--
            ``(1) the Department of Homeland Security;
            ``(2) the Department of Health and Human Services;
            ``(3) the Department of Transportation;
            ``(4) the Department of Justice;
            ``(5) the Environmental Protection Agency; and
            ``(6) any other department or agency determined to be 
        necessary by the President.
    ``(c) Administration.--The Department shall provide administrative 
support to the Interagency Committee, which shall include--
            ``(1) scheduling meetings;
            ``(2) preparing agenda;
            ``(3) maintaining minutes and records; and
            ``(4) producing reports.
    ``(d) Chairperson.--The Secretary shall designate a chairperson of 
the Interagency Committee.
    ``(e) Meetings.--The Interagency Committee shall meet--
            ``(1) at the call of the Secretary; or
            ``(2) not less frequently than once every 1 month.''.
    (b) Technical and Conforming Amendment.--The table of contents for 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 801 the following:

``Sec. 802. Interagency Committee To Coordinate and Streamline Homeland 
                            Security Grant Programs.''.

SEC. 3. STREAMLINING FEDERAL HOMELAND SECURITY GRANTS.

    (a) Director of State and Local Government Coordination.--Section 
801 of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Establishment.--
            ``(1) In general.--There is established within the Office 
        of the Secretary the Office for State and Local Government 
        Coordination, which shall oversee and coordinate departmental 
        programs for, and relationships with, State and local 
        governments.
            ``(2) Director.--The Office established under paragraph (1) 
        shall be headed by the Director of State and Local Government 
        Coordination, who shall be appointed by the President, by and 
        with the advice and consent of the Senate.'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) administering the firefighter assistance grant 
        program established under section 33 of the Federal Fire 
        Prevention and Control Act of 1974 (15 U.S.C. 2229) by--
                    ``(A) coordinating grant making activities with--
                            ``(i) emergency preparedness and response 
                        personnel;
                            ``(ii) grants made under section 4 of the 
                        Homeland Security Grant Enhancement Act of 
                        2004; and
                            ``(iii) grants made under other Federal 
                        programs to enhance emergency preparedness;
                    ``(B) awarding grants on a competitive basis 
                directly to fire departments of a State, in 
                consultation with the chief executive of the State, for 
                the purpose of protecting the health and safety of the 
                public and firefighting personnel against fire and 
                fire-related hazards;
                    ``(C) complying with the administrative 
                requirements set forth in section 33 of the Federal 
                Fire Prevention and Control Act of 1974 (15 U.S.C. 
                2229) and retaining the administrative requirements set 
                forth under part 152 of title 44, Code of Federal 
                Regulations; and
                    ``(D) ensuring that all equipment purchased with 
                grant funds for which there are voluntary consensus 
                standards meet such standards.''; and
            (3) by adding at the end the following:
    ``(c) Reference.--All references to `Director' in section 33 of the 
Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229) shall 
be deemed to refer to the Director for State and Local Government 
Coordination.''.
    (b) Office for Domestic Preparedness.--The Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended--
            (1) by redesignating section 430 as section 803 and 
        transferring that section to the end of subtitle A of title 
        VIII, as amended by section 2;
            (2) in section 803, as redesignated by paragraph (1)--
                    (A) in subsection (a), by striking ``the 
                Directorate of Border and Transportation Security'' and 
                inserting ``the Office for State and Local Government 
                Coordination'';
                    (B) in subsection (b), by striking ``who shall be 
                appointed by the President'' and all that follows and 
                inserting ``who shall report directly to the Director 
                of State and Local Government Coordination.''; and
                    (C) in subsection (c)--
                            (i) in paragraph (7)--
                                    (I) by striking ``other'' and 
                                inserting ``the'';
                                    (II) by striking ``consistent with 
                                the mission and functions of the 
                                Directorate''; and
                                    (III) by striking ``and'' at the 
                                end;
                            (ii) in paragraph (8)--
                                    (I) by inserting ``carrying out'' 
                                before ``those elements''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(9) managing the Homeland Security Information 
        Clearinghouse established under section 801(c).''.
    (c) Technical and Conforming Amendment.--The table of contents for 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended--
            (1) by striking the item relating to section 430; and
            (2) by inserting after the item relating to section 802, as 
        added by this Act, the following:

``803. Office for Domestic Preparedness.''.
    (d) Establishment of Homeland Security Information Clearinghouse.--
Section 801 of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) 
is amended by adding at the end the following:
    ``(c) Homeland Security Information Clearinghouse.--
            ``(1) Establishment.--There is established within the 
        Office for State and Local Government Coordination a Homeland 
        Security Information Clearinghouse (referred to in this section 
        as the `Clearinghouse'), which shall assist States, local 
        governments, and first responders in accordance with paragraphs 
        (2) through (5).
            ``(2) Homeland security grant information.--The 
        Clearinghouse shall create and maintain a web site, a toll-free 
        number, and a single publication containing information 
        regarding the homeland security grant programs identified under 
        section 802(a)(4)(A).
            ``(3) Technical assistance.--The Clearinghouse, in 
        consultation with the Interagency Committee established under 
        section 802, shall--
                    ``(A) coordinate technical assistance provided by 
                any Federal agency to States and local governments to 
                conduct threat analyses and vulnerability assessments; 
                and
                    ``(B) establish templates for conducting threat 
                analyses and vulnerability assessments.
            ``(4) Best practices.--The Clearinghouse shall work with 
        States, local governments, emergency response providers and the 
        National Domestic Preparedness Consortium, and private 
        organizations to gather, validate, and disseminate information 
        regarding successful State and local homeland security programs 
        and practices.
            ``(5) Use of federal funds.--The Clearinghouse shall 
        compile information regarding equipment, training, and other 
        services purchased with Federal funds provided under the 
        homeland security grant programs identified under section 
        802(a)(4)(A), and make such information, and information 
        regarding voluntary standards of training, equipment, and 
        exercises, available to States, local governments, and first 
        responders.
            ``(6) Other information.--The Clearinghouse shall provide 
        States, local governments, and first responders with any other 
        information that the Secretary determines necessary.''.

SEC. 4. HOMELAND SECURITY GRANT PROGRAM.

    (a) Definition.--In this section, the term ``State'' has the 
meaning given that term in section 2 of the Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.).
    (b) Grants Authorized.--The Secretary of Homeland Security (in this 
section referred to as the ``Secretary'') may award grants to States to 
enhance homeland security.
    (c) Use of Funds.--
            (1) In general.--Grants awarded under subsection (b)--
                    (A) shall be used to address homeland security 
                matters related to acts of terrorism or major disasters 
                and related capacity building; and
                    (B) shall not be used to supplant ongoing first 
                responder expenses or general protective measures.
            (2) Allowable uses.--Grants awarded under subsection (b) 
        may be used to--
                    (A) develop State plans or risk assessments 
                (including the development of the homeland security 
                plan) to respond to terrorist attacks and strengthen 
                all hazards emergency planning in coordination with the 
                requirements under section 201 of the Disaster Relief 
                Act of 1974 (42 U.S.C 5131), and community-wide plans 
                for responding to terrorist or all hazards emergency 
                events that are coordinated with the capacities of 
                applicable Federal, State, and local governments, first 
                responders, and State and local government health 
                agencies;
                    (B) build and sustain comprehensive all-hazards 
                emergency management capacity, such as planning, 
                training, exercises, personnel, operational activities, 
                equipment, early warning, public information and 
                education, mutual aid, and other preparedness, 
                response, and recovery activities;
                    (C) develop State, regional, or local mutual aid 
                agreements;
                    (D) purchase or upgrade equipment based on State 
                and local needs as identified under a State homeland 
                security plan;
                    (E) conduct exercises to strengthen emergency 
                preparedness of State and local first responders 
                including law enforcement, fire fighting personnel, and 
                emergency medical service workers, and other emergency 
                responders identified in a State homeland security 
                plan;
                    (F) pay for overtime expenses relating to training 
                activities consistent with the goals outlined in a 
                State homeland security plan; and
                    (G) promote training regarding homeland security 
                preparedness including--
                            (i) emergency preparedness responses to a 
                        use or threatened use of a weapon of mass 
                        destruction; and
                            (ii) training in the use of equipment, 
                        including detection, monitoring, and 
                        decontamination equipment, and personal 
                        protective gear.
            (3) Prohibited uses.--
                    (A) Construction.--Grants awarded under subsection 
                (b) may not be used to construct buildings or other 
                physical facilities, except those described in section 
                611 of the Disaster Relief Act of 1974 (42 U.S.C. 
                5196), or to acquire land.
                    (B) Compensation.--Not more than 5 percent of grant 
                funds provided under this section may be expended for 
                the compensation of emergency planning personnel 
                authorized under paragraph (2)(B). The amount of any 
                such grant expended for the compensation of personnel 
                shall not exceed the amount of State or local 
                government funds made available to increase such 
                compensation.
                    (C) Overtime expenses.--Not more than 5 percent of 
                grant funds provided under this section may be used for 
                overtime expenses for training carried out under 
                paragraph (2)(F).
                    (D) Cost sharing.--Grant funds provided under this 
                section shall not be used for any State or local 
                government cost sharing contribution request under this 
                section.
    (d) Application.--
            (1) Submission.--A State may apply for a grant under this 
        section by submitting to the Secretary an application at such 
        time, and in such manner, and containing such information the 
        Secretary may reasonably require.
            (2) Revisions.--A State may revise a homeland security plan 
        certified under subsection (e) at the time an application is 
        submitted under paragraph (1) after receiving approval from the 
        Secretary.
            (3) Approval.--The Secretary shall not award a grant under 
        this section unless the application submitted by the State 
        includes a homeland security plan meeting the requirements of 
        subsection (e).
            (4) Release of funds.--The Secretary shall release grant 
        funds to States with approved plans after the approval of an 
        application submitted under this subsection.
    (e) Homeland Security Plan.--
            (1) In general.--An application submitted under subsection 
        (d) shall include a certification that the State has prepared a 
        3-year State homeland security plan (referred to in this 
        subsection as the ``plan'') to respond to terrorist attacks and 
        strengthen all hazards emergency planning that has been 
        approved by the Secretary.
            (2) Contents.--The plan shall contain measurable goals and 
        objectives that--
                    (A) establish a 3-year strategy to set priorities 
                for the allocation of funding to political subdivisions 
                based on the risk, capabilities, and needs described 
                under paragraph (3)(C);
                    (B) provide for interoperable communications;
                    (C) provide for local coordination of response and 
                recovery efforts, including procedures for effective 
                incident command in conformance with the National 
                Incident Management System;
                    (D) ensure that first responders and other 
                emergency personnel have adequate training and 
                appropriate equipment for the threats that may occur;
                    (E) provide for improved coordination and 
                collaboration among police, fire, and public health 
                authorities at State and local levels;
                    (F) coordinate emergency response and public health 
                plans;
                    (G) mitigate risks to critical infrastructure that 
                may be vulnerable to terrorist attacks;
                    (H) promote regional coordination among contiguous 
                local governments;
                    (I) identify necessary protective measures by 
                private owners of critical infrastructure;
                    (J) promote orderly evacuation procedures when 
                necessary;
                    (K) ensure support from the public health community 
                for measures needed to prevent, detect and treat 
                bioterrorism, and radiological and chemical incidents;
                    (L) increase the number of local jurisdictions 
                participating in local and statewide exercises;
                    (M) meet preparedness goals as determined by the 
                Secretary; and
                    (N) include a report from the relevant advisory 
                committee established under paragraph (3)(D) that 
                documents the areas of support, disagreement, or 
                recommended changes to the plan before its submission 
                to the Secretary.
            (3) Development process.--
                    (A) In general.--In preparing the plan under this 
                section, a State shall--
                            (i) provide for the consideration of all 
                        homeland security needs;
                            (ii) follow a process that is continuing, 
                        inclusive, cooperative, and comprehensive, as 
                        appropriate; and
                            (iii) coordinate the development of the 
                        plan with the homeland security planning 
                        activities of local governments.
                    (B) Coordination with local planning activities.--
                The coordination under subparagraph (A)(iii) shall 
                allow input from local stakeholders, including--
                            (i) local officials;
                            (ii) first responders and emergency 
                        response providers; and
                            (iii) private sector companies, such as 
                        railroads and chemical manufacturers.
                    (C) Scope of planning.--Each State preparing a plan 
                under this section shall, in conjunction with the local 
                stakeholders under subparagraph (B), address all the 
                information requested by the Secretary, and complete a 
                comprehensive assessment of--
                            (i) risk, including a--
                                    (I) vulnerability assessment;
                                    (II) threat assessment; and
                                    (III) public health assessment, in 
                                coordination with the State 
                                bioterrorism plan; and
                            (ii) capabilities and needs, including--
                                    (I) an evaluation of current 
                                preparedness, mitigation, and response 
                                capabilities based on such assessment 
                                mechanisms as shall be determined by 
                                the Secretary;
                                    (II) an evaluation of capabilities 
                                needed to address the risks described 
                                under clause (i); and
                                    (III) an assessment of the 
                                shortfall between the capabilities 
                                described under subclause (I) and the 
                                required capabilities described under 
                                subclause (II).
                    (D) Advisory committee.--
                            (i) In general.--Each State preparing a 
                        plan under this section shall establish an 
                        advisory committee to receive comments from the 
                        public and the local stakeholders identified 
                        under subparagraph (B).
                            (ii) Composition.--The Advisory Committee 
                        shall include local officials, local first 
                        responders, and emergency response providers 
                        that are representative of the counties, 
                        cities, and towns within the State.
            (4) Plan approval.--The Secretary shall approve a plan upon 
        finding that the plan meets the requirements of--
                    (A) paragraphs (2) and (3);
                    (B) the interim performance measurements under 
                subsection (h)(1), or the national performance 
                standards under subsection (h)(2); and
                    (C) any other criteria the Secretary determines 
                necessary to the approval of a State plan.
            (5) Review of advisory committee report.--The Secretary 
        shall review the recommendations of the advisory committee 
        report incorporated into a plan under subsection (e)(2)(N) to 
        ensure cooperation and coordination between local and State 
        jurisdictions in planning the use of grant funds under this 
        section.
    (f) Discretionary Grant Program.--
            (1) In general.--The Secretary shall use 10 percent of the 
        funds appropriated under this section to make discretionary 
        grants to local governments that the Secretary considers to be 
        high threat areas based upon the criteria under paragraph (2).
            (2) High threat area criteria.--The Secretary shall ensure 
        that an award of a grant under this subsection is based upon 
        the consideration of the local government's--
                    (A) population and population density;
                    (B) location, risk, or vulnerability of critical 
                infrastructure or key national assets; and
                    (C) any other factors determined by the Secretary.
            (3) Consistency.--Any grant awarded under this subsection 
        shall be used to supplement and support, in a consistent and 
        coordinated manner with, those activities and objectives 
        described under subsection (b) or a State homeland security 
        plan.
            (4) Coordination.--The Secretary shall ensure that any 
        grants made under this subsection encourage multiple contiguous 
        units of local government and mutual aid partners to coordinate 
        any homeland security activities.
    (g) Funding.--
            (1) In general.--The Secretary shall make awards of grant 
        funds in accordance with paragraphs (2) through (7).
            (2) Maintaining a baseline level of security.--Each State 
        whose application is approved under subsection (c), including 
        the District of Columbia and the Commonwealth of Puerto Rico 
        shall receive .75 percent of the total amount appropriated in 
        any fiscal year. The United States Territories (including 
        American Samoa, the Commonwealth of Northern Mariana Islands, 
        Guam, and the United States Virgin Islands) shall receive .25 
        percent of the total amount appropriated in any fiscal year.
            (3) Assessment.--The Secretary shall distribute any 
        remaining available grant funds, after distribution of funds 
        for grants under subsections (d) and (f), based on--
                    (A) population and population density;
                    (B) threat, risk, and vulnerability of critical 
                infrastructure or key national assets identified in the 
                State homeland security plan; and
                    (C) any other factors identified by the Secretary.
            (4) Funding for local entities and first responders.--The 
        Secretary shall require grant recipients to provide local 
        governments, first responders, and other local groups, 
        consistent with the applicable State homeland security plan, 
        with not less than 80 percent of the grant funds, the resources 
        purchased with such grant funds, or a combination thereof, not 
        later than 60 days after receiving grant funds under this 
        section.
            (5) State and local match.--
                    (A) In general.--The Secretary shall require a 
                recipient of a grant under this section to make 
                available non-Federal contributions in an amount equal 
                to 25 percent of the Federal funds provided under the 
                grant.
                    (B) Effective date.--The matching requirement under 
                subparagraph (A) shall take effect 2 years after the 
                date of enactment of this Act.
            (6) Report on homeland security spending.--Each recipient 
        of a grant under this section shall annually submit a report to 
        the Secretary that contains--
                    (A) an accounting of the amount of State and local 
                funds spent on homeland security activities under the 
                applicable State homeland security plan; and
                    (B) information regarding the use of grant funds by 
                units of local government as required by the Secretary.
            (7) Supplement not supplant.--Amounts appropriated for 
        grants under this section shall be used to supplement and not 
        supplant other State and local public funds obligated for the 
        purposes provided under this Act.
    (h) Accountability.--
            (1) Interim performance measures.--
                    (A) In general.--Before establishing performance 
                standards under paragraph (2), the Secretary shall 
                assist each State in establishing interim performance 
                measures based upon--
                            (i) the goals and objectives under 
                        subsection (e)(2); and
                            (ii) any other factors determined by the 
                        Secretary.
                    (B) Annual report.--Before establishing performance 
                measures under paragraph (2), each State with an 
                approved State plan shall submit to the Secretary a 
                report detailing the progress the State has made in 
                meeting the interim performance measures established 
                under subparagraph (A).
            (2) National performance standards.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall set 
                national performance standards based in part on the 
                goals and objectives under subsection (e)(2) and any 
                other factors the Secretary determines relevant.
                    (B) Compliance.--The Secretary shall ensure that 
                State plans are in conformance with the standards set 
                under subparagraph (A).
                    (C) Annual report.--After the establishment of 
                performance standards under subparagraph (A), each 
                State with an approved State homeland security plan 
                shall submit to the Secretary a report on the progress 
                the State has made in meeting such standards.
            (3) General accounting office access to information.--Each 
        recipient of a grant under this section and the Department of 
        Homeland Security shall provide the General Accounting Office 
        with full access to information regarding the activities 
        carried out under this section.
            (4) Audit.--Grant recipients that expend $300,000 or more 
        in Federal funds during any fiscal year shall submit to the 
        Secretary an organization wide financial and compliance audit 
        report in conformance with the requirements of chapter 75 of 
        title 31, United States Code.
    (i) Remedies for Non-compliance.--
            (1) In general.--If the Secretary finds, after reasonable 
        notice and an opportunity for a hearing, that a recipient of a 
        grant under this section has failed to substantially comply 
        with any provision of this section, the Secretary shall--
                    (A) terminate any payment of grant funds to be made 
                to the recipient under this section;
                    (B) reduce the amount of payment of grant funds to 
                the recipient by an amount equal to the amount of 
                grants funds that were not expended by the recipient in 
                accordance with this section; or
                    (C) limit the use of grant funds received under 
                this section to programs, projects, or activities not 
                affected by the failure to comply.
            (2) Duration of penalty.--The Secretary shall apply an 
        appropriate penalty under paragraph (1) until such time as the 
        Secretary determines that the grant recipient is in full 
        compliance with this section.
    (j) Reports to Congress.--The Secretary shall submit an annual 
report to Congress that provides--
            (1) findings relating to the performance standards 
        established under subsection (h);
            (2) the status of preparedness goals and objectives;
            (3) an evaluation of how States and local governments are 
        meeting preparedness goals and objectives;
            (4) the total amount of resources provided to the States;
            (5) the total amount of resources provided to units of 
        local government; and
            (6) a list of how these resources were expended.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 5. FLEXIBILITY IN UNSPENT HOMELAND SECURITY FUNDS.

    (a) Reallocation of Funds.--The Director of the Office for Domestic 
Preparedness, Department of Homeland Security, shall allow any State to 
request approval to reallocate funds received pursuant to 
appropriations for the State Homeland Security Grant Program under 
Public Laws 105-277 (112 Stat. 2681 et seq.), 106-113 (113 Stat. 1501A-
3 et seq.), 106-553 (114 Stat. 2762A-3 et seq.), 107-77 (115 Stat. 78 
et seq.), or the Consolidated Appropriations Resolution of 2003 (Public 
Law 108-7), among the 4 categories of equipment, training, exercises, 
and planning.
    (b) Approval of Reallocation Requests.--The Director shall approve 
reallocation requests under subsection (a) in accordance with the State 
plan and any other relevant factors that the Secretary of Homeland 
Security determines to be necessary.
    (c) Limitation.--A waiver under this section shall not affect the 
obligation of a State to pass through 80 percent of the amount 
appropriated for equipment to units of local government.
                                 <all>
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