H. R. 1—18 
‘‘(K) such other factors as are specified in writing by 
the Administrator; and 
‘‘(2) the anticipated effectiveness of the proposed use of 
the grant by the State or high-risk urban area in increasing 
the ability of that State or high-risk urban area to prevent, 
prepare for, protect against, and respond to acts of terrorism, 
to meet its target capabilities, and to otherwise reduce the 
overall risk to the high-risk urban area, the State, or the 
Nation. 
‘‘(b) TYPES OF THREAT.—In assessing threat under this section, 
the Administrator shall consider the following types of threat to 
critical infrastructure sectors and to populations in all areas of 
the United States, urban and rural: 
‘‘(1) Biological. 
‘‘(2) Chemical. 
‘‘(3) Cyber. 
‘‘(4) Explosives. 
‘‘(5) Incendiary. 
‘‘(6) Nuclear. 
‘‘(7) Radiological. 
‘‘(8) Suicide bombers. 
‘‘(9) Such other types of threat determined relevant by 
the Administrator. 
‘‘SEC. 2008. USE OF FUNDS. 
‘‘(a) PERMITTED USES.—Grants awarded under section 2003 
or 2004 may be used to achieve target capabilities related to pre-
venting, preparing for, protecting against, and responding to acts 
of terrorism, consistent with a State homeland security plan and 
relevant local, tribal, and regional homeland security plans, 
through— 
‘‘(1) developing and enhancing homeland security, emer-
gency management, or other relevant plans, assessments, or 
mutual aid agreements; 
‘‘(2) designing, conducting, and evaluating training and 
exercises, including training and exercises conducted under 
section 512 of this Act and section 648 of the Post-Katrina 
Emergency Management Reform Act of 2006 (6 U.S.C. 748); 
‘‘(3) protecting a system or asset included on the prioritized 
critical infrastructure list established under section 210E(a)(2); 
‘‘(4) purchasing, upgrading, storing, or maintaining equip-
ment, including computer hardware and software; 
‘‘(5) ensuring operability and achieving interoperability of 
emergency communications; 
‘‘(6) responding to an increase in the threat level under 
the Homeland Security Advisory System, or to the needs 
resulting from a National Special Security Event; 
‘‘(7) establishing, enhancing, and staffing with appro-
priately qualified personnel State, local, and regional fusion 
centers that comply with the guidelines established under sec-
tion 210A(i); 
‘‘(8) enhancing school preparedness; 
‘‘(9) supporting public safety answering points; 
‘‘(10) paying salaries and benefits for personnel, including 
individuals employed by the grant recipient on the date of 
the relevant grant application, to serve as qualified intelligence 
analysts;
H. R. 1—19 
‘‘(11) paying expenses directly related to administration 
of the grant, except that such expenses may not exceed 3 
percent of the amount of the grant; 
‘‘(12) any activity permitted under the Fiscal Year 2007 
Program Guidance of the Department for the State Homeland 
Security Grant Program, the Urban Area Security Initiative 
(including 
activities 
permitted 
under 
the 
full-time 
counterterrorism staffing pilot), or the Law Enforcement Ter-
rorism Prevention Program; and 
‘‘(13) any other appropriate activity, as determined by the 
Administrator. 
‘‘(b) LIMITATIONS ON USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Funds provided under section 2003 or 
2004 may not be used— 
‘‘(A) to supplant State or local funds, except that 
nothing in this paragraph shall prohibit the use of grant 
funds provided to a State or high-risk urban area for other-
wise permissible uses under subsection (a) on the basis 
that a State or high-risk urban area has previously used 
State or local funds to support the same or similar uses; 
or 
‘‘(B) for any State or local government cost-sharing 
contribution. 
‘‘(2) PERSONNEL.— 
‘‘(A) IN GENERAL.—Not more than 50 percent of the 
amount awarded to a grant recipient under section 2003 
or 2004 in any fiscal year may be used to pay for personnel, 
including overtime and backfill costs, in support of the 
permitted uses under subsection (a). 
‘‘(B) WAIVER.—At the request of the recipient of a 
grant under section 2003 or 2004, the Administrator may 
grant a waiver of the limitation under subparagraph (A). 
‘‘(3) CONSTRUCTION.— 
‘‘(A) IN GENERAL.—A grant awarded under section 2003 
or 2004 may not be used to acquire land or to construct 
buildings or other physical facilities. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) IN GENERAL.—Notwithstanding subparagraph 
(A), nothing in this paragraph shall prohibit the use 
of a grant awarded under section 2003 or 2004 to 
achieve target capabilities related to preventing, pre-
paring for, protecting against, or responding to acts 
of terrorism, including through the alteration or remod-
eling of existing buildings for the purpose of making 
such buildings secure against acts of terrorism. 
‘‘(ii) REQUIREMENTS
FOR
EXCEPTION.—No grant 
awarded under section 2003 or 2004 may be used 
for a purpose described in clause (i) unless— 
‘‘(I) specifically approved by the Administrator; 
‘‘(II) any construction work occurs under terms 
and conditions consistent with the requirements 
under section 611(j)(9) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5196(j)(9)); and 
‘‘(III) the amount allocated for purposes under 
clause (i) does not exceed the greater of $1,000,000 
or 15 percent of the grant award.
H. R. 1—20 
‘‘(4) RECREATION.—Grants awarded under this subtitle may 
not be used for recreational or social purposes. 
‘‘(c) MULTIPLE-PURPOSE FUNDS.—Nothing in this subtitle shall 
be construed to prohibit State, local, or tribal governments from 
using grant funds under sections 2003 and 2004 in a manner 
that enhances preparedness for disasters unrelated to acts of ter-
rorism, if such use assists such governments in achieving target 
capabilities related to preventing, preparing for, protecting against, 
or responding to acts of terrorism. 
‘‘(d) REIMBURSEMENT OF COSTS.— 
‘‘(1) PAID-ON-CALL
OR
VOLUNTEER
REIMBURSEMENT.—In 
addition to the activities described in subsection (a), a grant 
under section 2003 or 2004 may be used to provide a reasonable 
stipend to paid-on-call or volunteer emergency response pro-
viders who are not otherwise compensated for travel to or 
participation in training or exercises related to the purposes 
of this subtitle. Any such reimbursement shall not be considered 
compensation for purposes of rendering an emergency response 
provider an employee under the Fair Labor Standards Act 
of 1938 (29 U.S.C. 201 et seq.). 
‘‘(2) PERFORMANCE OF FEDERAL DUTY.—An applicant for 
a grant under section 2003 or 2004 may petition the Adminis-
trator to use the funds from its grants under those sections 
for the reimbursement of the cost of any activity relating to 
preventing, preparing for, protecting against, or responding 
to acts of terrorism that is a Federal duty and usually per-
formed by a Federal agency, and that is being performed by 
a State or local government under agreement with a Federal 
agency. 
‘‘(e) FLEXIBILITY
IN UNSPENT HOMELAND SECURITY GRANT 
FUNDS.—Upon request by the recipient of a grant under section 
2003 or 2004, the Administrator may authorize the grant recipient 
to transfer all or part of the grant funds from uses specified in 
the grant agreement to other uses authorized under this section, 
if the Administrator determines that such transfer is in the interests 
of homeland security. 
‘‘(f) EQUIPMENT STANDARDS.—If an applicant for a grant under 
section 2003 or 2004 proposes to upgrade or purchase, with assist-
ance provided under that grant, new equipment or systems that 
do not meet or exceed any applicable national voluntary consensus 
standards developed under section 647 of the Post-Katrina Emer-
gency Management Reform Act of 2006 (6 U.S.C. 747), the applicant 
shall include in its application an explanation of why such equip-
ment or systems will serve the needs of the applicant better than 
equipment or systems that meet or exceed such standards. 
‘‘Subtitle B—Grants Administration 
‘‘SEC. 2021. ADMINISTRATION AND COORDINATION. 
‘‘(a) REGIONAL COORDINATION.—The Administrator shall ensure 
that— 
‘‘(1) all recipients of grants administered by the Department 
to prevent, prepare for, protect against, or respond to natural 
disasters, acts of terrorism, or other man-made disasters 
(excluding assistance provided under section 203, title IV, or 
title V of the Robert T. Stafford Disaster Relief and Emergency
H. R. 1—21 
Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et 
seq.)) coordinate, as appropriate, their prevention, prepared-
ness, and protection efforts with neighboring State, local, and 
tribal governments; and 
‘‘(2) all high-risk urban areas and other recipients of grants 
administered by the Department to prevent, prepare for, protect 
against, or respond to natural disasters, acts of terrorism, or 
other man-made disasters (excluding assistance provided under 
section 203, title IV, or title V of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5133, 5170 
et seq., and 5191 et seq.)) that include or substantially affect 
parts or all of more than 1 State coordinate, as appropriate, 
across State boundaries, including, where appropriate, through 
the use of regional working groups and requirements for 
regional plans. 
‘‘(b) PLANNING COMMITTEES.— 
‘‘(1) IN
GENERAL.—Any State or high-risk urban area 
receiving a grant under section 2003 or 2004 shall establish 
a planning committee to assist in preparation and revision 
of the State, regional, or local homeland security plan and 
to assist in determining effective funding priorities for grants 
under sections 2003 and 2004. 
‘‘(2) COMPOSITION.— 
‘‘(A) IN
GENERAL.—The planning committee shall 
include 
representatives 
of 
significant 
stakeholders, 
including— 
‘‘(i) local and tribal government officials; and 
‘‘(ii) emergency response providers, which shall 
include representatives of the fire service, law enforce-
ment, emergency medical response, and emergency 
managers. 
‘‘(B) GEOGRAPHIC REPRESENTATION.—The members of 
the planning committee shall be a representative group 
of individuals from the counties, cities, towns, and Indian 
tribes within the State or high-risk urban area, including, 
as appropriate, representatives of rural, high-population, 
and high-threat jurisdictions. 
‘‘(3) EXISTING PLANNING COMMITTEES.—Nothing in this sub-
section may be construed to require that any State or high- 
risk urban area create a planning committee if that State 
or high-risk urban area has established and uses a multijuris-
dictional planning committee or commission that meets the 
requirements of this subsection. 
‘‘(c) INTERAGENCY COORDINATION.— 
‘‘(1) IN GENERAL.—Not later than 12 months after the date 
of enactment of the Implementing Recommendations of the 
9/11 Commission Act of 2007, the Secretary (acting through 
the Administrator), the Attorney General, the Secretary of 
Health and Human Services, and the heads of other agencies 
providing assistance to State, local, and tribal governments 
for 
preventing, 
preparing 
for, 
protecting 
against, 
and 
responding to natural disasters, acts of terrorism, and other 
man-made disasters, shall jointly— 
‘‘(A) compile a comprehensive list of Federal grant 
programs for State, local, and tribal governments for pre-
venting, preparing for, protecting against, and responding
H. R. 1—22 
to natural disasters, acts of terrorism, and other man- 
made disasters; 
‘‘(B) compile the planning, reporting, application, and 
other requirements and guidance for the grant programs 
described in subparagraph (A); 
‘‘(C) develop recommendations, as appropriate, to— 
‘‘(i) eliminate redundant and duplicative require-
ments for State, local, and tribal governments, 
including onerous application and ongoing reporting 
requirements; 
‘‘(ii) ensure accountability of the programs to the 
intended purposes of such programs; 
‘‘(iii) coordinate allocation of grant funds to avoid 
duplicative or inconsistent purchases by the recipients; 
‘‘(iv) make the programs more accessible and user 
friendly to applicants; and 
‘‘(v) ensure the programs are coordinated to 
enhance the overall preparedness of the Nation; 
‘‘(D) submit the information and recommendations 
under subparagraphs (A), (B), and (C) to the appropriate 
committees of Congress; and 
‘‘(E) provide the appropriate committees of Congress, 
the Comptroller General, and any officer or employee of 
the Government Accountability Office with full access to 
any information collected or reviewed in preparing the 
submission under subparagraph (D). 
‘‘(2) SCOPE
OF
TASK.—Nothing in this subsection shall 
authorize the elimination, or the alteration of the purposes, 
as delineated by statute, regulation, or guidance, of any grant 
program that exists on the date of the enactment of the Imple-
menting Recommendations of the 9/11 Commission Act of 2007, 
nor authorize the review or preparation of proposals on the 
elimination, or the alteration of such purposes, of any such 
grant program. 
‘‘(d) SENSE OF CONGRESS.—It is the sense of Congress that, 
in order to ensure that the Nation is most effectively able to 
prevent, prepare for, protect against, and respond to all hazards, 
including natural disasters, acts of terrorism, and other man-made 
disasters— 
‘‘(1) the Department should administer a coherent and 
coordinated system of both terrorism-focused and all-hazards 
grants; 
‘‘(2) there should be a continuing and appropriate balance 
between 
funding 
for 
terrorism-focused 
and 
all-hazards 
preparedness, as reflected in the authorizations of appropria-
tions for grants under the amendments made by titles I and 
II, as applicable, of the Implementing Recommendations of 
the 9/11 Commission Act of 2007; and 
‘‘(3) with respect to terrorism-focused grants, it is necessary 
to ensure both that the target capabilities of the highest risk 
areas are achieved quickly and that basic levels of prepared-
ness, as measured by the attainment of target capabilities, 
are achieved nationwide. 
‘‘SEC. 2022. ACCOUNTABILITY. 
‘‘(a) AUDITS OF GRANT PROGRAMS.— 
‘‘(1) COMPLIANCE REQUIREMENTS.—
H. R. 1—23 
‘‘(A) AUDIT REQUIREMENT.—Each recipient of a grant 
administered by the Department that expends not less 
than $500,000 in Federal funds during its fiscal year shall 
submit to the Administrator a copy of the organization- 
wide financial and compliance audit report required under 
chapter 75 of title 31, United States Code. 
‘‘(B) ACCESS TO INFORMATION.—The Department and 
each recipient of a grant administered by the Department 
shall provide the Comptroller General and any officer or 
employee of the Government Accountability Office with 
full access to information regarding the activities carried 
out related to any grant administered by the Department. 
‘‘(C) 
IMPROPER
PAYMENTS.—Consistent 
with 
the 
Improper Payments Information Act of 2002 (31 U.S.C. 
3321 note), for each of the grant programs under sections 
2003 and 2004 of this title and section 662 of the Post- 
Katrina Emergency Management Reform Act of 2006 (6 
U.S.C. 762), the Administrator shall specify policies and 
procedures for— 
‘‘(i) identifying activities funded under any such 
grant program that are susceptible to significant 
improper payments; and 
‘‘(ii) reporting any improper payments to the 
Department. 
‘‘(2) AGENCY PROGRAM REVIEW.— 
‘‘(A) IN GENERAL.—Not less than once every 2 years, 
the Administrator shall conduct, for each State and high- 
risk urban area receiving a grant administered by the 
Department, a programmatic and financial review of all 
grants awarded by the Department to prevent, prepare 
for, protect against, or respond to natural disasters, acts 
of terrorism, or other man-made disasters, excluding assist-
ance provided under section 203, title IV, or title V of 
the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 
et seq.). 
‘‘(B) CONTENTS.—Each review under subparagraph (A) 
shall, at a minimum, examine— 
‘‘(i) whether the funds awarded were used in 
accordance with the law, program guidance, and State 
homeland security plans or other applicable plans; and 
‘‘(ii) the extent to which funds awarded enhanced 
the ability of a grantee to prevent, prepare for, protect 
against, and respond to natural disasters, acts of ter-
rorism, and other man-made disasters. 
‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—In addition 
to any other amounts authorized to be appropriated to 
the Administrator, there are authorized to be appropriated 
to the Administrator for reviews under this paragraph— 
‘‘(i) $8,000,000 for each of fiscal years 2008, 2009, 
and 2010; and 
‘‘(ii) such sums as are necessary for fiscal year 
2011, and each fiscal year thereafter. 
‘‘(3) 
OFFICE
OF
INSPECTOR
GENERAL
PERFORMANCE 
AUDITS.— 
‘‘(A) IN GENERAL.—In order to ensure the effective and 
appropriate use of grants administered by the Department,
H. R. 1—24 
the Inspector General of the Department each year shall 
conduct audits of a sample of States and high-risk urban 
areas that receive grants administered by the Department 
to prevent, prepare for, protect against, or respond to nat-
ural disasters, acts of terrorism, or other man-made disas-
ters, excluding assistance provided under section 203, title 
IV, or title V of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5133, 5170 et 
seq., and 5191 et seq.). 
‘‘(B) DETERMINING SAMPLES.—The sample selected for 
audits under subparagraph (A) shall be— 
‘‘(i) of an appropriate size to— 
‘‘(I) assess the overall integrity of the grant 
programs described in subparagraph (A); and 
‘‘(II) act as a deterrent to financial mismanage-
ment; and 
‘‘(ii) selected based on— 
‘‘(I) the size of the grants awarded to the 
recipient; 
‘‘(II) the past grant management performance 
of the recipient; 
‘‘(III) concerns identified by the Administrator, 
including referrals from the Administrator; and 
‘‘(IV) such other factors as determined by the 
Inspector General of the Department. 
‘‘(C) COMPREHENSIVE
AUDITING.—During the 7-year 
period beginning on the date of enactment of the Imple-
menting Recommendations of the 9/11 Commission Act of 
2007, the Inspector General of the Department shall con-
duct not fewer than 1 audit of each State that receives 
funds under a grant under section 2003 or 2004. 
‘‘(D) REPORT BY THE INSPECTOR GENERAL.— 
‘‘(i) IN
GENERAL.—The Inspector General of the 
Department shall submit to the appropriate commit-
tees of Congress an annual consolidated report 
regarding the audits completed during the fiscal year 
before the date of that report. 
‘‘(ii) CONTENTS.—Each report submitted under 
clause (i) shall describe, for the fiscal year before the 
date of that report— 
‘‘(I) the audits conducted under subparagraph 
(A); 
‘‘(II) the findings of the Inspector General with 
respect to the audits conducted under subpara-
graph (A); 
‘‘(III) whether the funds awarded were used 
in accordance with the law, program guidance, 
and State homeland security plans and other 
applicable plans; and 
‘‘(IV) the extent to which funds awarded 
enhanced the ability of a grantee to prevent, pre-
pare for, protect against, and respond to natural 
disasters, acts of terrorism and other man-made 
disasters. 
‘‘(iii) 
DEADLINE.—For 
each 
year, 
the 
report 
required under clause (i) shall be submitted not later 
than December 31.
H. R. 1—25 
‘‘(E) PUBLIC AVAILABILITY ON WEBSITE.—The Inspector 
General of the Department shall make each audit con-
ducted under subparagraph (A) available on the website 
of the Inspector General, subject to redaction as the 
Inspector General determines necessary to protect classified 
and other sensitive information. 
‘‘(F) PROVISION OF INFORMATION TO ADMINISTRATOR.— 
The Inspector General of the Department shall provide 
to the Administrator any findings and recommendations 
from audits conducted under subparagraph (A). 
‘‘(G) EVALUATION OF GRANTS MANAGEMENT AND OVER-
SIGHT.—Not later than 1 year after the date of enactment 
of the Implementing Recommendations of the 9/11 Commis-
sion Act of 2007, the Inspector General of the Department 
shall review and evaluate the grants management and 
oversight practices of the Federal Emergency Management 
Agency, including assessment of and recommendations 
relating to— 
‘‘(i) the skills, resources, and capabilities of the 
workforce; and 
‘‘(ii) any additional resources and staff necessary 
to carry out such management and oversight. 
‘‘(H) AUTHORIZATION OF APPROPRIATIONS.—In addition 
to any other amounts authorized to be appropriated to 
the Inspector General of the Department, there are author-
ized to be appropriated to the Inspector General of the 
Department for audits under subparagraph (A)— 
‘‘(i) $8,500,000 for each of fiscal years 2008, 2009, 
and 2010; and 
‘‘(ii) such sums as are necessary for fiscal year 
2011, and each fiscal year thereafter. 
‘‘(4) PERFORMANCE ASSESSMENT.—In order to ensure that 
States and high-risk urban areas are using grants administered 
by the Department appropriately to meet target capabilities 
and preparedness priorities, the Administrator shall— 
‘‘(A) ensure that any such State or high-risk urban 
area conducts or participates in exercises under section 
648(b) of the Post-Katrina Emergency Management Reform 
Act of 2006 (6 U.S.C. 748(b)); 
‘‘(B) use performance metrics in accordance with the 
comprehensive assessment system under section 649 of 
the Post-Katrina Emergency Management Reform Act of 
2006 (6 U.S.C. 749) and ensure that any such State or 
high-risk urban area regularly tests its progress against 
such metrics through the exercises required under subpara-
graph (A); 
‘‘(C) use the remedial action management program 
under section 650 of the Post-Katrina Emergency Manage-
ment Reform Act of 2006 (6 U.S.C. 750); and 
‘‘(D) ensure that each State receiving a grant adminis-
tered by the Department submits a report to the Adminis-
trator on its level of preparedness, as required by section 
652(c) of the Post-Katrina Emergency Management Reform 
Act of 2006 (6 U.S.C. 752(c)). 
‘‘(5) CONSIDERATION OF ASSESSMENTS.—In conducting pro-
gram reviews and performance audits under paragraphs (2) 
and (3), the Administrator and the Inspector General of the
H. R. 1—26 
Department shall take into account the performance assess-
ment elements required under paragraph (4). 
‘‘(6) RECOVERY AUDITS.—The Administrator shall conduct 
a recovery audit (as that term is defined by the Director of 
the Office of Management and Budget under section 3561 of 
title 31, United States Code) for any grant administered by 
the Department with a total value of not less than $1,000,000, 
if the Administrator finds that— 
‘‘(A) a financial audit has identified improper payments 
that can be recouped; and 
‘‘(B) it is cost effective to conduct a recovery audit 
to recapture the targeted funds. 
‘‘(7) REMEDIES FOR NONCOMPLIANCE.— 
‘‘(A) IN GENERAL.—If, as a result of a review or audit 
under this subsection or otherwise, the Administrator finds 
that a recipient of a grant under this title has failed to 
substantially comply with any provision of law or with 
any regulations or guidelines of the Department regarding 
eligible expenditures, the Administrator shall— 
‘‘(i) reduce the amount of payment of grant funds 
to the recipient by an amount equal to the amount 
of grants funds that were not properly expended by 
the recipient; 
‘‘(ii) limit the use of grant funds to programs, 
projects, or activities not affected by the failure to 
comply; 
‘‘(iii) refer the matter to the Inspector General 
of the Department for further investigation; 
‘‘(iv) terminate any payment of grant funds to be 
made to the recipient; or 
‘‘(v) take such other action as the Administrator 
determines appropriate. 
‘‘(B) DURATION OF PENALTY.—The Administrator shall 
apply an appropriate penalty under subparagraph (A) until 
such time as the Administrator determines that the grant 
recipient is in full compliance with the law and with 
applicable guidelines or regulations of the Department. 
‘‘(b) REPORTS BY GRANT RECIPIENTS.— 
‘‘(1) 
QUARTERLY
REPORTS
ON
HOMELAND
SECURITY 
SPENDING.— 
‘‘(A) IN GENERAL.—As a condition of receiving a grant 
under section 2003 or 2004, a State, high-risk urban area, 
or directly eligible tribe shall, not later than 30 days after 
the end of each Federal fiscal quarter, submit to the 
Administrator a report on activities performed using grant 
funds during that fiscal quarter. 
‘‘(B) 
CONTENTS.—Each 
report 
submitted 
under 
subparagraph (A) shall at a minimum include, for the 
applicable State, high-risk urban area, or directly eligible 
tribe, and each subgrantee thereof— 
‘‘(i) the amount obligated to that recipient under 
section 2003 or 2004 in that quarter; 
‘‘(ii) the amount of funds received and expended 
under section 2003 or 2004 by that recipient in that 
quarter; and