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 Flor-
ida, 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 Cali-
fornia, Mr. BLUMENAUER, Mr. HINCHEY, Mr. CAPUANO, Mr. TIERNEY, 
Mr. KENNEDY of Rhode Island, Mr. HONDA, Ms. BERKLEY, Ms. KAP-
TUR, 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 com-
mittee 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
condition (Code Red) declared by the Secretary of Home-
land Security, that are in excess of normal operating 
expenses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘State Threat Alert Re-
imbursement (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 de-
fend our homeland. 
(2) States and local governments are in the 
midst of the worst budget crisis since the Great De-
pression. 
(3) Cash-strapped States and local governments 
are further burdened by expenditures relating to in-
creased homeland security threat alert mitigation. 
(4) According to a survey by the United States 
Conference of Mayors, cities nationwide with popu-
lations of between 30,000 and 8,000,0000 are 
spending more than $70,000,000 per week on addi-
tional homeland security measures during the effec-
tive 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 exist-
ing homeland security spending (or spending com-
mitments) since the terrorist attacks on New York 
City and the Washington metropolitan area on Sep-
tember 11, 2001. 
SEC. 3. REIMBURSEMENT. 
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity 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 ex-
penses. 
(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 re-
quested; 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 Sec-
retary. 
(2) SUPPORTING
INFORMATION.—A Governor 
shall include in a request under this subsection such 
supporting information as the Secretary may pre-
scribe. 
(3) APPLICATION
BY
INTERNET.—The Sec-
retary 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 ex-
penses 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 re-
quirement 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 Sec-
retary shall notify—
(A) the Select Committee on Homeland Se-
curity of the House of Representatives; and 
(B) the Committee on Governmental Af-
fairs 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 per-
sonnel; 
(ii) overtime pay; 
(iii) the cost of supplies expended; and 
(iv) the depreciated value of equip-
ment destroyed or damaged; and 
(C) does not include—
(i) the costs of ordinary wages of per-
sonnel of a State or local government enti-
ty; 
(ii) overhead costs; or
(iii) depreciation (if calculated in ways 
other than use during an emergency). 
(2) IN
EXCESS
OF
NORMAL
OPERATING
EX-
PENSES.—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, adminis-
tration, 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, insur-
ance, 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 govern-
mental administrative body that has fiscal re-
sponsibility 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 in-
curred in performing functions of a State or local 
government entity.
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