I 
108TH CONGRESS 
1ST SESSION H. R. 3158
To amend the Homeland Security Act of 2002 to establish a task force 
to determine essential capabilities for State and local jurisdictions to 
prevent, prepare for, and respond to acts of terrorism, to authorize 
the Secretary of Homeland Security to make grants to State and local 
governments to achieve such capability, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 24, 2003
Mr. TURNER of Texas (for himself, Mr. THOMPSON of Mississippi, Ms. LO-
RETTA SANCHEZ of California, Mr. MARKEY, Mr. DICKS, Mr. FRANK of 
Massachusetts, Ms. HARMAN, Mr. CARDIN, Ms. SLAUGHTER, Mr. 
DEFAZIO, Mrs. LOWEY, Mr. ANDREWS, Ms. NORTON, Ms. LOFGREN, Ms. 
MCCARTHY of Missouri, Ms. JACKSON-LEE of Texas, Mr. PASCRELL, 
Mrs. CHRISTENSEN, Mr. ETHERIDGE, Mr. GONZALEZ, Mr. LUCAS of 
Kentucky, Mr. LANGEVIN, Mr. MEEK of Florida, Ms. PELOSI, Mr. 
HOYER, Mr. MENENDEZ, Ms. BERKLEY, Mr. PALLONE, Mr. ISRAEL, Mr. 
LANTOS, Mr. ACEVEDO-VILA´, Mrs. MCCARTHY of New York, Mr. CASE, 
Ms. KILPATRICK, Mr. MCGOVERN, Mr. GREEN of Texas, Ms. DELAURO, 
Mr. MOORE, Ms. SOLIS, Mr. FROST, Mr. ROSS, Mr. MCINTYRE, Mr. 
STENHOLM, Mrs. TAUSCHER, Mr. MICHAUD, Mr. HOLDEN, Ms. MCCOL-
LUM, Mr. PAYNE, Mr. WYNN, Mr. UDALL of New Mexico, Mrs. JONES 
of Ohio, Mr. HONDA, Mr. SANDLIN, Mr. JOHN, Mr. SNYDER, Ms. 
MILLENDER-MCDONALD, 
Mr. 
GRIJALVA, 
Mr. 
BERRY, 
Mr. 
RUPPERSBERGER, Mr. EDWARDS, Mr. UDALL of Colorado, Mr. FARR, 
Ms. BORDALLO, Mr. HOEFFEL, Mr. BERMAN, Mr. HINOJOSA, Mr. BELL, 
Mr. REYES, Mr. ORTIZ, Ms. KAPTUR, Mr. DAVIS of Florida, Ms. LEE, 
Mr. BOYD, Mr. GEORGE MILLER of California, Mr. KENNEDY of Rhode 
Island, Ms. CORRINE BROWN of Florida, Mr. MCNULTY, Mr. DELAHUNT, 
Ms. CARSON of Indiana, Mr. ROTHMAN, Mr. ENGEL, Ms. LINDA T. 
SA´NCHEZ of California, Mrs. MALONEY, Mr. KILDEE, Ms. MAJETTE, Mr. 
LARSEN of Washington, Mr. HINCHEY, Mr. TOWNS, Ms. HOOLEY of Or-
egon, Ms. SCHAKOWSKY, Mr. FILNER, Mr. SPRATT, Mr. BISHOP of New 
York, Mr. WAXMAN, Mr. VAN HOLLEN, Mr. TIERNEY, Mr. MEEHAN, Mr. 
NADLER, Mr. BLUMENAUER, Mr. BACA, Mr. SCHIFF, Mr. LAMPSON, Mr. 
SHERMAN, Mrs. CAPPS, Mr. CROWLEY, Mr. CUMMINGS, Mr. DAVIS of Il-
linois, Mr. DAVIS of Tennessee, Ms. DEGETTE, Mr. EMANUEL, Mr. 
HASTINGS of Florida, Mr. HILL, Mr. JEFFERSON, Mr. MEEKS of New 
York, Mr. PRICE of North Carolina, Mr. STRICKLAND, Mr. THOMPSON
of California, Mr. WU, Ms. WATERS, Ms. ESHOO, Ms. ROYBAL-ALLARD, 
Mr. LARSON of Connecticut, Mr. BRADY of Pennsylvania, Mrs. DAVIS of 
California, Mr. BALLANCE, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
HOLT, Mr. SMITH of Washington, Mr. BISHOP of Georgia, Mr. COOPER, 
and Mr. SKELTON) introduced the following bill; which was referred to 
the Select Committee on Homeland Security, and in addition to the Com-
mittees on Transportation and Infrastructure, the Judiciary, and Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend the Homeland Security Act of 2002 to establish 
a task force to determine essential capabilities for State 
and local jurisdictions to prevent, prepare for, and re-
spond to acts of terrorism, to authorize the Secretary 
of Homeland Security to make grants to State and local 
governments to achieve such capability, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PREPARE ACT. 
(a) IN GENERAL.—The Homeland Security Act of 
2002 (Public Law 107–296; 6 U.S.C. 101 et seq.) is 
amended by adding at the end the following:
‘‘TITLE 
XVIII—PREPARING 
AMERICA TO RESPOND EF-
FECTIVELY ACT OF 2003
‘‘SEC. 1801. SHORT TITLE. 
‘‘This title may be cited as the ‘Preparing America 
to Respond Effectively Act of 2003’ or the ‘PREPARE 
Act’. 
‘‘SEC. 1802. FINDINGS. 
‘‘The Congress finds the following: 
‘‘(1) America’s leaders have not yet defined na-
tional standards of terrorism preparedness—the es-
sential capabilities to which every jurisdiction in 
America should have access. 
‘‘(2) It is therefore not yet possible to deter-
mine precisely the gap between how prepared a 
State or local government is now, and how prepared 
it needs to be, to respond to acts of terrorism. 
‘‘(3) The absence of a functioning methodology 
to determine national requirements for terrorism 
preparedness constitutes a public policy crisis. 
‘‘(4) Establishing national standards that de-
fine levels of State and local government terrorism 
preparedness is a critical first step toward deter-
mining the nature and extent of State and local gov-
ernment needs, and the human and financial re-
sources needed to fulfill them. 
‘‘(5) National standards would make it possible 
to direct funding to meet identified needs and meas-
ure preparedness levels on a national scale. 
‘‘(6) The Federal government should play a 
predominant role in assisting communities to reach 
the level of preparedness they need to respond to a 
catastrophic terrorist attack. 
‘‘SEC. 1803. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ESSENTIAL CAPABILITIES.—The term ‘es-
sential capabilities’ means the levels, availability, 
and competence of emergency personnel and equip-
ment across a variety of disciplines needed to effec-
tively and efficiently prevent, prepare for, and re-
spond to acts of terrorism according to predeter-
mined procedures and guidelines. 
‘‘(2) FIRST RESPONDER.—The term ‘first re-
sponder’ means—
‘‘(A) fire, emergency medical service, law 
enforcement, public health, emergency manage-
ment, public works, hazardous materials, hos-
pital, and other medical personnel; and
‘‘(B) such other personnel as are identified 
by the Secretary. 
‘‘(3) SECOND RESPONDERS.—The term ‘second 
responders’ means individuals who have training and 
equipment that may be useful in responding to a ter-
rorist attack and who are integrated into emergency 
response plans in order to supplement the capabili-
ties of first responders. 
‘‘(4) TASK
FORCE.—The term ‘Task Force’ 
means the Task Force on Standards for Terrorism 
Preparedness established by section 1804. 
‘‘(5) PUBLIC WORKS.—The term ‘public works’ 
means structures, such as roads, highways, build-
ings, bridges, and docks, constructed and maintained 
at government expense for public use. 
‘‘(6) CRITICAL
INFRASTRUCTURE.—The term 
‘critical infrastructure’ means those networks, sys-
tems, institutions, facilities, people, and procedures, 
the destruction, disruption, or diversion of which 
would cause major harm to the national well being. 
‘‘SEC. 1804. TASK FORCE ON STANDARDS FOR TERRORISM 
PREPAREDNESS. 
‘‘(a) ESTABLISHMENT.—Within 60 days after the 
date of the enactment of this title, the Secretary of Home-
land Security shall establish a task force to be known as
the Task Force on Standards for Terrorism Preparedness 
for the purpose of developing and recommending a meth-
odology for States and local governments to determine es-
sential capability. 
‘‘(b) MEMBERSHIP.—The Task Force shall be com-
posed of 27 members, as follows: 
‘‘(1) APPOINTED MEMBERS, GENERALLY.—The 
Task Force shall have 20 members appointed by the 
Secretary by not later than 60 days after the date 
of the enactment of this Act, as follows: 
‘‘(A) 2 members representing fire services, 
1 of whom shall represent the volunteer fire 
service. 
‘‘(B) 2 members representing State and 
local law enforcement agencies, 1 of whom shall 
represent local government law enforcement 
agencies.
‘‘(C) 2 members representing emergency 
medical services. 
‘‘(D) 2 members representing State and 
local public health services, 1 of whom shall 
represent local public health services, and at 
least one of whom shall have expertise in men-
tal health services.
‘‘(E) 2 members representing State and 
local emergency management agencies, 1 of 
whom shall represent local emergency manage-
ment agencies. 
‘‘(F) 2 members representing State and 
local public works agencies, 1 of whom shall 
represent local public works agencies. 
‘‘(G) 2 members representing hospitals and 
other medical services. 
‘‘(H) 1 member representing hazardous 
materials response organizations. 
‘‘(I) 1 member representing the National 
Fire Protection Association. 
‘‘(J) 1 member representing the American 
National Standards Institute. 
‘‘(K) 1 member representing the National 
Institute for Justice, appointed in consultation 
with the Attorney General. 
‘‘(L) 1 member representing the Inter-
Agency Board for Equipment Standardization 
and Interoperability. 
‘‘(M) 1 member representing the Centers 
for Disease Control and Prevention’s National 
Public Health Performance Standards Pro-
gram, appointed in consultation with the Sec-
retary of the Department of Health and 
Human Services. 
‘‘(2) MEMBERSHIP OF ELECTED OFFICIALS.—
The Task Force shall have 4 members appointed by 
the Secretary from among individuals who are elect-
ed officials of State and local governments, as fol-
lows: 
‘‘(A) 2 members representing elected State 
government officials, each of which is a member 
of a different political party. 
‘‘(B) 2 members representing elected local 
government officials, each of which is a member 
of a different political party.
‘‘(3) CHAIR
AND
VICE-CHAIR.—At the first 
meeting of the Task Force, the membership of the 
Task Force appointed under paragraphs (1) and (2) 
shall elect a chair and vice-chair of the Task Force. 
The Task Force shall ensure that the elected chair 
and vice-chair—
‘‘(A) represent two different professions 
among the professions that make up the Task 
Force; 
‘‘(B) are not both representatives of State 
governments; and
‘‘(C) are not both representatives of local 
governments. 
‘‘(4) EX OFFICIO MEMBERS.—The Task Force 
shall have the following ex officio members: 
‘‘(A) The Director of the Office for Domes-
tic Preparedness (or the Director’s designee). 
‘‘(B) The Director of the Office for State 
and Local Government Coordination (or the Di-
rector’s designee). 
‘‘(C) The Under Secretary for Emergency 
Preparedness and Response (or the Under Sec-
retary’s designee). 
‘‘(c) COMPOSITION OF TASK FORCE.—In appointing 
members to the Task Force, the Secretary shall ensure 
that its membership—
‘‘(1) is geographically diverse; 
‘‘(2) includes representatives from both rural 
and urban jurisdictions; 
‘‘(3) includes representatives from both man-
agement and labor; 
‘‘(4) includes representatives from both uni-
formed and nonuniformed professions; and 
‘‘(5) includes sufficient personnel with security 
clearances necessary to review classified materials
that may be needed to conduct the business of the 
Task Force. 
‘‘(d) QUALIFICATIONS OF APPOINTED MEMBERS.—
Members appointed under subsection (b)(1) shall be indi-
viduals who—
‘‘(1) have expertise in disaster prevention, pre-
paredness, mitigation, or response; emergency plan-
ning and management; terrorism; or first responder 
technologies; or 
‘‘(2) have other pertinent qualifications or expe-
rience. 
‘‘(e) STUDY.—
‘‘(1) IN GENERAL.—The Task Force shall con-
duct a study to—
‘‘(A) identify the essential capabilities to 
which every State and local government should 
have access; and 
‘‘(B) develop a methodology for States and 
local governments to use to determine—
‘‘(i) the extent to which a State or 
local government has achieved the essential 
capabilities that apply to the government; 
‘‘(ii) the extent to which a State or 
local government has not achieved the es-
sential capabilities that apply to the gov-
ernment; and 
‘‘(iii) the funding and other additional 
resources required to fully achieve the es-
sential capabilities that apply to the gov-
ernment. 
‘‘(2) SPECIFIC CAPABILITIES.—In carrying out 
the study, the Task Force shall identify essential ca-
pabilities for purposes of this subsection with respect 
to, among other matters, the following: 
‘‘(A) Equipment. 
‘‘(B) Personnel. 
‘‘(C) Training. 
‘‘(D) Planning. 
‘‘(E) Exercises. 
‘‘(F) Intelligence. 
‘‘(G) Interoperable communications. 
‘‘(H) Emergency notification systems.
‘‘(I) Detection and diagnostic technologies 
for biological, nuclear, radiological, and chem-
ical weapons of mass destruction. 
‘‘(J) Any other category considered appro-
priate by the Task Force as essential capabili-
ties.
‘‘(3) FLEXIBILITY.—The Task Force shall iden-
tify essential capabilities for purposes of this sub-
section in terms sufficiently flexible to be applied—
‘‘(A) to the unique threats, vulnerabilities, 
geography, size, and other individual factors ap-
plicable to any State or local government; and 
‘‘(B) to a wide range of threats and 
vulnerabilities, including with respect to—
‘‘(i) biological threats; 
‘‘(ii) nuclear threats; 
‘‘(iii) radiological threats; 
‘‘(iv) incendiary threats; 
‘‘(v) chemical threats; 
‘‘(vi) explosives; 
‘‘(vii) suicide bombers; 
‘‘(viii) disruption or diversion of crit-
ical infrastructure; and 
‘‘(ix) past acts of terrorism or known 
activity of terrorist groups. 
‘‘(4) THREAT
AND
VULNERABILITY
ASSESS-
MENT FACTORS.—The methodology developed by the 
Task Force shall include factors that ensure that the 
essential capabilities determined for a State or local 
government will vary based on threat and vulner-
ability assessments that take into account the fol-
lowing factors: 
‘‘(A) The proximity of a community to 
critical infrastructure and international borders. 
‘‘(B) The presence of national icons or na-
tional assets that may be terrorist targets. 
‘‘(C) Population (including tourist, mili-
tary, and commuting population) and popu-
lation density. 
‘‘(D) Any other factor considered appro-
priate by the Task Force. 
‘‘(f) REPORT.—
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this title, the Task 
Force shall submit a report to the Secretary con-
taining the results of the study under this section. 
‘‘(2) CONTENTS.—The report shall include the 
following: 
‘‘(A) A description of the essential capa-
bilities to which every State and local govern-
ment should have access. 
‘‘(B) A proposed methodology for State 
and local governments to use to determine—
‘‘(i) the extent to which a State or 
local government has achieved the essential 
capabilities that apply to the government; 
‘‘(ii) the extent to which a State or 
local government has not achieved the es-
sential capabilities that apply to the gov-
ernment; and 
‘‘(iii) the funding and other additional 
resources required to fully achieve the es-
sential capabilities that apply to the gov-
ernment. 
‘‘(3) REVIEW AND REVISION.—
‘‘(A) REVIEW AND COMMENTS.—Within 30 
days after the date of the submission of the 
proposed methodology by the Task Force, the 
Secretary shall review and provide comments to 
the Task Force on the methodology. 
‘‘(B) REVISION AND SUBMISSION OF FINAL 
METHODOLOGY.—Within 30 days after receiv-
ing the Secretary’s comments, the Task Force 
shall—
‘‘(i) revise the methodology based on 
the comments provided by the Secretary, if 
the Task Force determines that such revi-
sions are appropriate; and
‘‘(ii) submit the final methodology to 
the Secretary. 
‘‘(4) PUBLICATION.—Within 10 days after the 
date of submission of the final methodology by the 
Task Force, the Secretary shall—
‘‘(A) subject to paragraph (5), publish the 
final methodology in the Federal Register; and 
‘‘(B) provide the final methodology to the 
Committee on Appropriations and the Select 
Committee on Homeland Security of the House 
of Representatives, and to the Committee on 
Appropriations and the Committee on Govern-
mental Affairs of the Senate. 
‘‘(5) UNCLASSIFIED
VERSION
OF
METHOD-
OLOGY.—If the methodology contains information 
that is sensitive or subject to classification, the Sec-
retary shall publish an unclassified version of the 
methodology under paragraph (4)(A). 
‘‘(g) TASK FORCE PERSONNEL MATTERS.—
‘‘(1) COMPENSATION OF MEMBERS.—Except as 
provided in paragraph (2), each member of the Task 
Force shall be compensated at a rate equal to the 
daily equivalent of the annual rate of basic pay pre-
scribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each
day (including travel time) during which such mem-
ber is engaged in the performance of the duties of 
the Task Force. 
‘‘(2) LIMITATION.—Members of the Task Force 
who are officers or employees of the United States 
shall receive no additional pay by reason of their 
service as a member of the Task Force. 
‘‘(3) TRAVEL EXPENSES.—The members of the 
Task Force shall be allowed travel expenses, includ-
ing per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter 1 of 
chapter 57 of title 5, United States Code, while 
away from their homes or regular places of business 
in the performance of services for the Task Force. 
‘‘(h) STAFF AND RESOURCES.—
‘‘(1) IN GENERAL.—The Secretary shall provide 
to the Task Force, on a nonreimbursable basis, such 
administrative services, funds, staff, facilities, and 
other support services as the Task Force determines
necessary for it to perform its duty efficiently and 
in accordance with this section. 
‘‘(2) ACCESS TO INFORMATION.—
‘‘(A) IN GENERAL.—The Task Force shall 
have access to all intelligence information re-
garding threats and vulnerabilities and all exist-
ing assessments of State and local essential ca-
pability deemed by the Task Force necessary to 
carry out the duties of the Task Force. 
‘‘(B) LIMITATION.—Nothing in this sub-
section shall be considered to allow a member of 
the Task Force access to classified materials 
unless such member demonstrates appropriate 
clearances to receive such materials. 
‘‘(3) DETAILEES.—
‘‘(A) IN GENERAL.—Upon the request of 
the Task Force, the head of any department or 
agency of the Federal Government may detail, 
without reimbursement, any personnel of the 
department or agency to the Task Force to as-
sist in carrying out its duties. 
‘‘(B) MAINTENANCE
OF
CIVIL
SERVICE 
STATUS OR PRIVILEGE.—The detail of an em-
ployee shall be without interruption or loss of 
civil service status or privilege. 
‘‘(i) FUNDING.—Of the amounts authorized to be ap-
propriated for fiscal year 2005 to the Secretary under this 
Act for the Department, the Secretary shall make avail-
able to the Task Force $8,000,000 for the activities of 
the Task Force under this section.
‘‘(j) APPLICABILITY
OF
THE FEDERAL ADVISORY 
COMMITTEE ACT.—The Federal Advisory Committee Act 
(5 U.S.C. App.) shall apply to the Task Force. 
‘‘(k) TERMINATION.—The Task Force shall termi-
nate 30 days after the submission of the final methodology 
under subsection (f). 
‘‘SEC. 1805. STATE AND LOCAL GOVERNMENT DETERMINA-
TION 
OF 
ESSENTIAL 
CAPABILITIES 
AND 
NEEDS. 
‘‘(a) IN GENERAL.—In order to qualify for the grant 
program under section 1806, a State or unit of local gov-
ernment (in this section referred to as a ‘government’) 
must—
‘‘(1) determine, under the methodology pub-
lished by the Secretary under section 1804, the es-
sential capabilities that apply to the government; 
‘‘(2) determine the extent to which the govern-
ment has achieved the essential capabilities that 
apply to the government; 
‘‘(3) determine the needs of the government to 
achieve the essential capabilities that apply to the 
government; and 
‘‘(4) submit to the Secretary—
‘‘(A) a prioritized description of the needs 
of the government to achieve such essential ca-
pabilities; and 
‘‘(B) an estimate of the costs of those 
needs. 
‘‘(b) DETERMINATION, DESCRIPTION, AND LOCATION 
OF NEEDS.—In determining and describing needs under 
subsection (a), a government—
‘‘(1) may address such needs at the city, coun-
ty, regional, State, or interstate level; and 
‘‘(2) shall use regional, interjurisdictional, and 
interstate agreements, and activities conducted joint-
ly by more than one State or local government to the 
greatest extent practicable. 
‘‘(c) DUPLICATIVE NEEDS.—The determination and 
description of needs under subsection (a)—
‘‘(1) shall not include duplicative or overlapping 
needs; and 
‘‘(2) shall include all needs that have been iden-
tified by the government. 
‘‘(d) ROLE OF STATE GOVERNMENTS.—A determina-
tion under subsections (a) and (b) of essential capabilities 
to be maintained at the State or interstate level may only 
be made by a State.
‘‘(e) PRIORITIZATION.—A description of needs under 
subsection (a) shall include a prioritization of such needs 
based on the threat and vulnerability assessments factors 
included in the methodology developed by the Task Force 
under section 1804. 
‘‘(f) COMPILATION AND VALIDATION BY STATE.—
Each State shall—
‘‘(1) compile local and State government deter-
minations of needs submitted under subsection (a); 
‘‘(2) validate that in making such determina-
tions, the methodology published under section 1804 
was executed correctly; 
‘‘(3) provide local governments 15 days to re-
vise and resubmit determinations, if such determina-
tions cannot be validated under paragraph (2); 
‘‘(4) compile, based on the determinations 
under paragraphs (1) through (3), the overall needs 
of local and State governments to achieve essential 
terrorism preparedness and response capability; 
‘‘(5) calculate the amount of financial assist-
ance required by State and local governments to 
meet such needs; 
‘‘(6) complete a prioritization of such needs 
based on the threat and vulnerability assessments
ernments in the State) over the following 5 fis-
cal years, that includes—
‘‘(i) the relationship, expressed as a 
percentage, of each State’s needs to the 
total needs of the Nation; 
‘‘(ii) estimated budget requests for the 
following 5 fiscal years to meet the total 
needs of the Nation; and 
‘‘(iii) the same structure, type of in-
formation, and level of detail as the Future 
Years Defense Program submitted to the 
Congress by the Department of Defense 
under section 221 of title 10, United 
States Code. 
‘‘SEC. 1806. ESSENTIAL TERRORISM PREPAREDNESS AND 
RESPONSE GRANT PROGRAM. 
‘‘(a) GRANT AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary may make 
grants to State governments to address needs to 
achieve essential capability in accordance with the 
plan submitted by the Secretary under section 
1805(g)(2). 
‘‘(2) GRANT NAME.—A grant made under this 
section may be referred to as a ‘PREPARE Grant’. 
‘‘(b) DISTRIBUTION OF FUNDS.—
‘‘(1) 
ALLOCATION
AMONG
STATES.—From 
amounts available for each fiscal year for grants 
under this section, the Secretary shall allocate to 
each State the percentage determined for the State 
under section 1805(g)(2)(D)(i). 
‘‘(2) DISTRIBUTION BY STATE.—Not later than 
30 days after receiving grant funds under this sec-
tion, a State shall distribute the amounts provided 
in accordance with the plan and prioritization of 
needs submitted under section 1805(f)(6), or as re-
vised and resubmitted by the State under section 
1805(g)(1)(B). 
‘‘(c) COST SHARING.—
‘‘(1) FEDERAL SHARE.—
‘‘(A) IN GENERAL.—The Federal share of 
the cost of any activity carried out with a grant 
under this section shall not exceed 75 percent. 
‘‘(B) ADJUSTMENT.—(i) The Secretary 
may adjust the Federal share to an amount not 
to exceed 90 percent with respect to a grant. 
‘‘(ii) Within 1 year after the date of the 
enactment of this title, the Secretary shall issue 
regulations defining the criteria for cost share 
adjustment under this subparagraph.
‘‘(2) NON-FEDERAL MATCH OTHER THAN BY 
EXPENDITURE OF FUNDS.—Within 1 year after the 
date of the enactment of this title, the Secretary 
shall issue regulations that authorize a grantee 
under this section to use means other than the ex-
penditure of funds to pay the non-Federal share of 
the costs of an activity carried out with a grant 
under this section, including criteria for use of such 
means. 
‘‘(d) EXISTING PROGRAMS NOT AFFECTED.—Noth-
ing in this title shall affect the management and adminis-
tration of, nor provide for the combination of grant funds 
among, grant programs administered by the Department 
of Homeland Security or any other Federal agency, includ-
ing the following: 
‘‘(1) Assistance to firefighter grant programs 
carried out under section 33 of the Federal Fire 
Prevention and Control Act of 1974 (15 U.S.C. 
2001 et seq.). 
‘‘(2) The emergency management performance 
grant program carried out under sections 201(D), 
611, and 613 of Public Law 93–288. 
‘‘(3) The COPS grant program carried out 
under Public Law 103–50 and Public Law 103–322.
‘‘(4) The Local Law Enforcement Block Grant 
program funded pursuant to Public Law 104–134 
and other laws. 
‘‘(5) The Byrne Formula Grant Program car-
ried out under Public Law 100–690 and title I of 
Public Law 90-351 (42 U.S.C. 3711 et seq.). 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as are necessary for fiscal years 2006 through 2010 
to carry out the grant program authorized by this sec-
tion.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(6) of the Homeland Security Act of 2002 
(Public Law 107–296) is amended by adding at the end 
the following:
‘‘TITLE XVIII—PREPARING AMERICA TO RESPOND EFFECTIVELY 
ACT OF 2003
‘‘Sec. 1801. Short title. 
‘‘Sec. 1802. Findings. 
‘‘Sec. 1803. Definitions. 
‘‘Sec. 1804. Task Force on Standards for Terrorism Preparedness.
‘‘Sec. 1805. State and local government determination of essential capabilities 
and needs. 
‘‘Sec. 1806. Essential terrorism preparedness and response grant program.’’.
SEC. 2. DESIGNATION OF TERRORISM GRANT PROGRAM 
OFFICE. 
Section 430 of the Homeland Security Act of 2002 
(Public Law 107–296; 6 U.S.C. 238) is amended by add-
ing at the end the following:
‘‘(e) DESIGNATION.—The Office for Domestic Pre-
paredness shall be responsible for the following: 
‘‘(1) Administering all terrorism preparedness 
and response grant programs of the Department, in-
cluding—
‘‘(A) State Homeland Security grants ad-
ministered by the Office for Domestic Prepared-
ness under section 1014 of Public Law 107–56; 
‘‘(B) high-threat urban area grants admin-
istered by the Office for Domestic Preparedness 
under Public Law 108–11; 
‘‘(C) critical infrastructure security grants 
administered by the Office for Domestic Pre-
paredness under section 1014(c)(3) of Public 
Law 107–56 and Public Law 108–11; 
‘‘(D) PREPARE grants authorized under 
section 1806 of this Act; and 
‘‘(E) the Homeland Security Advisory Sys-
tem Response Grants authorized by section 
430(c)(8) of this Act. 
‘‘(2) Maintaining all information on grants, 
grant availability, application deadlines, and grant 
fund obligation deadlines under such programs. 
‘‘(3) Providing all information on grants, grant 
availability, application deadlines, and grant fund
obligation deadlines to grant applicants and recipi-
ents under such programs. 
‘‘(4) Preparing and submitting the reports 
under subsection (f). 
Nothing in this section provides the Office for Domestic 
Preparedness with the authority to manage or administer 
the programs identified under section 1806(d) of this Act. 
‘‘(f) ANNUAL REPORTS TO THE CONGRESS.—
‘‘(1) IN GENERAL.—The Director of the Office 
for Domestic Preparedness shall submit annual re-
ports regarding the administration of terrorism pre-
paredness and response grant programs of the De-
partment to the Committee on Appropriations and 
the Select Committee on Homeland Security of the 
House of Representatives and the Committee on Ap-
propriations and the Committee on Governmental 
Affairs of the Senate. 
‘‘(2) CONTENTS, 
GENERALLY.—Each report 
under this subsection shall include the following in-
formation with respect to the period covered by the 
report: 
‘‘(A) The amount of funds appropriated 
for such grant programs for each fiscal year. 
‘‘(B) Specific allocations of financial assist-
ance made to each State and local government.
tions for meeting such needs utilizing Federal 
grant programs; and 
‘‘(D) recommendations for streamlining 
and standardizing application, reporting, and 
administrative requirements of Federal grant 
programs to eliminate duplication and promote 
coordination of terrorism preparedness and re-
sponse grants.’’. 
SEC. 3. MODIFICATION OF HOMELAND SECURITY ADVI-
SORY SYSTEM. 
(a) IN GENERAL.—The Homeland Security Act of 
2002 (Public Law 107–296; 6 U.S.C. 121 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM. 
‘‘(a) IN GENERAL.—The Secretary shall revise the 
Homeland Security Advisory System referred to in section 
201(d)(7) to include the following: 
‘‘(1) A process for activating the System on a 
regional or critical infrastructure sector basis. 
‘‘(2) A requirement that any designation of the 
highest or second highest threat level shall be ac-
companied by a designation by the President of the 
regions and sectors of the country to which the des-
ignation applies.
‘‘(3) A requirement under which, as far in ad-
vance as possible, but in no case later than the time 
of any designation of regions or sectors by the Presi-
dent under paragraph (2), notice of any change in 
designation of threat level shall be provided to the 
Committee on Appropriations, the Select Committee 
on Homeland Security, and the Permanent Select 
Committee on Intelligence of the House of Rep-
resentatives, and the Committee on Appropriations, 
the Committee on Governmental Affairs, and the Se-
lect Committee on Intelligence, of the Senate, and to 
State and local governments. 
‘‘(4) A requirement that each notice to the Con-
gress under paragraph (3) shall include—
‘‘(A) a threat briefing that explains the in-
telligence or other information that informed 
the decision to make the designation;
‘‘(B) a description of Federal response ac-
tions being undertaken as a result of the 
change in designation of threat level; 
‘‘(C) recommended actions that should be 
taken by State and local governments, the pri-
vate sector, and other members of the public; 
and
‘‘(D) the estimated costs of the rec-
ommended actions for Federal, State, and local 
governments. 
‘‘(5) A requirement that an update of the esti-
mate of costs under paragraph (4)(D) shall be sub-
mitted to the Committees referred to in paragraph 
(3) 14 days after the designation for which the esti-
mate was prepared. 
‘‘(6) A requirement that each notice to State 
and local governments under paragraph (3) shall in-
clude information regarding threats on which the 
change in designation is based and recommended re-
sponse actions. 
‘‘(b) DEADLINE.—The modifications in subsection 
(a) shall be completed by the Secretary not later than 6 
months after the date of enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 
(Public Law 107–296) is amended by inserting after the 
item relating to section 202 the following:
‘‘Sec. 203. Homeland Security Advisory System.’’.
SEC. 4. HOMELAND SECURITY ADVISORY SYSTEM RE-
SPONSE GRANTS. 
Section 430 of the Homeland Security Act of 2002 
(Public Law 107–296; 6 U.S.C. 238) is amended—
(1) in subsection (c)(7) by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) by redesignating subsection (c)(8) as sub-
section (c)(9); 
(3) by inserting after subsection (c)(7) the fol-
lowing: 
‘‘(8) making grants to States and local govern-
ments to compensate such governments for addi-
tional personnel costs incurred as a result of ele-
vated threat level designations; and’’; and 
(4) by adding at the end the following: 
‘‘(e) ELEVATED THREAT LEVEL DESIGNATION DE-
FINED.—In this section, the term ‘elevated threat level 
designation’ means—
‘‘(1) any designation by the President of the 
highest or second highest threat level under the 
Homeland Security Advisory System (as modified 
pursuant to section 203(a)); or 
‘‘(2) any other increase in threat level that is 
specified by the President for purposes of this sec-
tion. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as are necessary for fiscal year 2005 to carry out 
the grant program authorized by subsection (c)(8).’’.
SEC. 5. INFORMATION SHARING WITH STATE AND LOCAL 
GOVERNMENTS. 
(a) FINDINGS.—The Congress finds that—
(1) the Federal government should continue to 
improve its sharing of terrorism-related information 
with State and local officials in order to better pre-
vent and prepare for terrorist attacks; 
(2) much of the information required by State 
and local officials to defend against terrorism can be 
disseminated by the Federal government on an un-
classified basis; 
(3) some information in the possession of Fed-
eral agencies that is needed at the State and local 
level to prevent and effectively respond to terrorist 
attacks is classified, and the disclosure of that infor-
mation would be harmful to national security inter-
ests; 
(4) mechanisms, such as tear-line intelligence 
reports, should be used to the greatest extent pos-
sible to ensure that needed information is shared in 
a timely manner with State and local officials while 
protecting classified sources and methods from dis-
closure; and 
(5) in cases where information can not be dis-
seminated in an unclassified form, or through the 
use of tear-line intelligence reports, procedures and
capabilities should be established throughout the Na-
tion to share and act upon classified information to 
prevent and respond to terrorist attacks, guided by 
appropriate safeguards to protect that information. 
(b) AMENDMENTS.—Section 893 of the Homeland 
Security Act of 2002 (Public Law 107–296; 6 U.S.C. 483) 
is amended by striking subsection (b) and inserting the 
following: 
‘‘(b) 
REPORT
REGARDING
SECURITY
CLEAR-
ANCES.—The Secretary of Homeland Security shall report 
to the Congress by not later than 6 months after the date 
of the enactment of the PREPARE Act on the number 
and level of security clearances needed by State and local 
government officials in order to effectively and efficiently 
share terrorism threat information. 
‘‘(c) REPORT
SPECIFYING
LEAD
AGENCY.—The 
President shall, by not later than 3 months after submis-
sion of the report required by subsection (a), submit to 
the congressional committees a report specifying the lead 
Government agency for—
‘‘(1) sharing terrorism threat information with 
State and local government officials; and 
‘‘(2) receiving such information from State and 
local government officials and further disseminating 
such information, as appropriate.