That in no such case shall the State or States 
pass through to the region less than 80 percent 
of the regional award. 
‘‘(D) CERTIFICATIONS
REGARDING
DIS-
TRIBUTION OF GRANT FUNDS TO REGIONS.—
Any State that receives a regional award under 
subparagraph (C) shall certify to the Secretary, 
by not later than 30 days after the expiration 
of the period described in subparagraph (C) 
with respect to the grant, that the State has 
made available to the region the required funds 
and resources in accordance with subparagraph 
(C). 
‘‘(E) DIRECT PAYMENTS TO REGIONS.—If 
any State fails to pass through a regional 
award to a region as required by subparagraph 
(C) within 45 days after receiving such award 
and does not request or receive an extension of 
such period under section 2006(h)(2), the re-
gion may petition the Secretary to receive di-
rectly the portion of the regional award that is 
required to be passed through to such region 
under subparagraph (C).
‘‘(F) REGIONAL LIAISONS.—A regional li-
aison designated under paragraph (4)(E)(iii) 
shall—
‘‘(i) coordinate with Federal, State, 
local, regional, and private officials within 
the region concerning terrorism prepared-
ness; 
‘‘(ii) develop a process for receiving 
input from Federal, State, local, regional, 
and private sector officials within the re-
gion to assist in the development of the re-
gional application and to improve the re-
gion’s access to covered grants; and 
‘‘(iii) administer, in consultation with 
State, local, regional, and private officials 
within the region, covered grants awarded 
to the region. 
‘‘(6) TRIBAL APPLICATIONS.—
‘‘(A) SUBMISSION
TO
THE
STATE
OR 
STATES.—To ensure the consistency required 
under subsection (d), an applicant that is a di-
rectly eligible tribe must submit its application 
to each State within the boundaries of which 
any part of such tribe is located for direct sub-
mission to the Department along with the appli-
cation of such State or States. 
‘‘(B) OPPORTUNITY
FOR
STATE
COM-
MENT.—Before awarding any covered grant to 
a directly eligible tribe, the Secretary shall pro-
vide an opportunity to each State within the 
boundaries of which any part of such tribe is lo-
cated to comment to the Secretary on the con-
sistency of the tribe’s application with the 
State’s homeland security plan. Any such com-
ments shall be submitted to the Secretary con-
currently with the submission of the State and 
tribal applications. 
‘‘(C) FINAL
AUTHORITY.—The Secretary 
shall have final authority to determine the con-
sistency of any application of a directly eligible 
tribe with the applicable State homeland secu-
rity plan or plans, and to approve any applica-
tion of such tribe. The Secretary shall notify 
each State within the boundaries of which any 
part of such tribe is located of the approval of 
an application by such tribe. 
‘‘(D) TRIBAL
LIAISON.—A tribal liaison 
designated under paragraph (4)(G) shall—
‘‘(i) coordinate with Federal, State, 
local, regional, and private officials con-
cerning terrorism preparedness; 
‘‘(ii) develop a process for receiving 
input from Federal, State, local, regional, 
and private sector officials to assist in the 
development of the application of such 
tribe and to improve the tribe’s access to 
covered grants; and 
‘‘(iii) administer, in consultation with 
State, local, regional, and private officials, 
covered grants awarded to such tribe. 
‘‘(E) LIMITATION ON THE NUMBER OF DI-
RECT GRANTS.—The Secretary may make cov-
ered grants directly to not more than 20 di-
rectly eligible tribes per fiscal year. 
‘‘(F) TRIBES
NOT
RECEIVING
DIRECT 
GRANTS.—An Indian tribe that does not receive 
a grant directly under this section is eligible to 
receive funds under a covered grant from the 
State or States within the boundaries of which 
any part of such tribe is located, consistent with 
the homeland security plan of the State as de-
scribed in subsection (c). If a State fails to 
comply with section 2006(g)(1), the tribe may
request payment under section 2006(h)(3) in 
the same manner as a local government. 
‘‘(7) EQUIPMENT STANDARDS.—If an applicant 
for a covered grant proposes to upgrade or purchase, 
with assistance provided under the grant, new equip-
ment or systems that do not meet or exceed any ap-
plicable national voluntary consensus standards es-
tablished by the Secretary, the applicant shall in-
clude in the application an explanation of why such 
equipment or systems will serve the needs of the ap-
plicant better than equipment or systems that meet 
or exceed such standards. 
‘‘SEC. 
2004. 
RISK-BASED 
EVALUATION 
AND 
PRIORITIZATION. 
‘‘(a) PRIORITIZATION OF GRANT APPLICATIONS.—
‘‘(1) FACTORS TO BE CONSIDERED.—The Sec-
retary shall evaluate and annually prioritize all 
pending applications for covered grants based upon 
the degree to which they would, by achieving, main-
taining, or enhancing the capabilities of the appli-
cants on a nationwide basis, lessen the threat to, 
vulnerability of, and consequences for persons (in-
cluding transient commuting and tourist popu-
lations) and critical infrastructure. Such evaluation 
and prioritization shall be based upon the most cur-
rent risk assessment available by the Office of Intel-
ligence Analysis and the Office of Infrastructure 
Protection of the threats of terrorism against the 
United States. In establishing criteria for evaluating 
and prioritizing applications for covered grants, the 
Secretary shall coordinate with the National Advi-
sory Council established under section 508, the Di-
rector of the Federal Emergency Management Agen-
cy, the United States Fire Administrator, the Chief 
Intelligence Officer of the Department, the Assistant 
Secretary for Infrastructure Protection, and other 
Department officials as determined by the Secretary. 
‘‘(2) CRITICAL
INFRASTRUCTURE
SECTORS.—
The Secretary specifically shall consider threats of 
terrorism against the following critical infrastructure 
sectors in all areas of the United States, urban and 
rural: 
‘‘(A) Agriculture and food. 
‘‘(B) Banking and finance. 
‘‘(C) Chemical industries. 
‘‘(D) The defense industrial base. 
‘‘(E) Emergency services. 
‘‘(F) Energy. 
‘‘(G) Government facilities. 
‘‘(H) Postal and shipping.
‘‘(I) Public health and health care. 
‘‘(J) Information technology. 
‘‘(K) Telecommunications. 
‘‘(L) Transportation systems. 
‘‘(M) Water. 
‘‘(N) Dams. 
‘‘(O) Commercial facilities. 
‘‘(P) National monuments and icons. 
The order in which the critical infrastructure sectors 
are listed in this paragraph shall not be construed 
as an order of priority for consideration of the im-
portance of such sectors. 
‘‘(3) TYPES OF THREAT.—The Secretary spe-
cifically shall consider the following types of threat 
to the critical infrastructure sectors described in 
paragraph (2), and to populations in all areas of the 
United States, urban and rural: 
‘‘(A) Biological threats. 
‘‘(B) Nuclear threats. 
‘‘(C) Radiological threats. 
‘‘(D) Incendiary threats. 
‘‘(E) Chemical threats. 
‘‘(F) Explosives. 
‘‘(G) Suicide bombers. 
‘‘(H) Cyber threats.
‘‘(I) Any other threats based on proximity 
to specific past acts of terrorism or the known 
activity of any terrorist group. 
The order in which the types of threat are listed in 
this paragraph shall not be construed as an order of 
priority for consideration of the importance of such 
threats. 
‘‘(4) CONSIDERATION
OF
ADDITIONAL
FAC-
TORS.—The Secretary shall take into account any 
other specific threat to a population (including a 
transient commuting or tourist population) or crit-
ical infrastructure sector that the Board has deter-
mined to exist. In evaluating the threat to a popu-
lation or critical infrastructure sector, the Secretary 
shall give greater weight to threats of terrorism 
based upon their specificity and credibility, including 
any pattern of repetition. 
‘‘(5) MINIMUM
AMOUNTS.—After evaluating 
and prioritizing grant applications under paragraph 
(1), the Department shall ensure that, for each fis-
cal year—
‘‘(A) each of the States, other than the 
Virgin Islands, American Samoa, Guam, and 
the Northern Mariana Islands, that has an ap-
proved State homeland security plan receives no
less than 0.25 percent of the funds available for 
covered grants for that fiscal year for purposes 
of implementing its homeland security plan; 
‘‘(B) each of the States, other than the 
Virgin Islands, American Samoa, Guam, and 
the Northern Mariana Islands, that has an ap-
proved State homeland security plan and that 
meets one or both of the additional high-risk 
qualifying criteria under paragraph (6) receives 
no less than 0.45 percent of the funds available 
for covered grants for that fiscal year for pur-
poses of implementing its homeland security 
plan; 
‘‘(C) the Virgin Islands, American Samoa, 
Guam, and the Northern Mariana Islands each 
receives no less than 0.08 percent of the funds 
available for covered grants for that fiscal year 
for purposes of implementing its approved State 
plan; and 
‘‘(D) directly eligible tribes collectively re-
ceive no less than 0.08 percent of the funds 
available for covered grants for such fiscal year 
for purposes of addressing the needs identified 
in the applications of such tribes, consistent 
with the homeland security plan of each State
within the boundaries of which any part of any 
such tribe is located, except that this clause 
shall not apply with respect to funds available 
for a fiscal year if the Secretary receives less 
than 5 applications for such fiscal year from 
such tribes or does not approve at least one 
such application. 
‘‘(6) ADDITIONAL HIGH-RISK QUALIFYING CRI-
TERIA.—For purposes of paragraph (5)(B), addi-
tional high-risk qualifying criteria consist of—
‘‘(A) having a significant international 
land border; or 
‘‘(B) adjoining a body of water within 
North America through which an international 
boundary line extends. 
‘‘(b) EFFECT OF REGIONAL AWARDS ON STATE MIN-
IMUM.—Any regional award, or portion thereof, provided 
to a State under section 2003(e)(5)(C) shall not be consid-
ered in calculating the minimum State award under sub-
section (a)(5) of this section. 
‘‘(c) RELATIONSHIP
TO OTHER PROGRAMS.—This 
section shall be carried out in consultation with the Sec-
retary of Health and Human Services. Nothing in this sec-
tion affects the scope of authority of the Secretary of
Health and Human Services, including such authority 
under the Public Health Service Act. 
‘‘SEC. 2005. USE OF FUNDS AND ACCOUNTABILITY RE-
QUIREMENTS. 
‘‘(a) IN GENERAL.—A covered grant may be used 
for—
‘‘(1) purchasing or upgrading equipment, in-
cluding computer hardware and software, to enhance 
terrorism preparedness; 
‘‘(2) exercises to strengthen terrorism prepared-
ness; 
‘‘(3) training for prevention (including detec-
tion) of, preparedness for, response to, or recovery 
from attacks involving weapons of mass destruction, 
including training in the use of equipment and com-
puter software; 
‘‘(4) developing or updating State homeland se-
curity plans, risk assessments, mutual aid agree-
ments, and emergency management plans to enhance 
terrorism preparedness; 
‘‘(5) establishing or enhancing mechanisms for 
sharing terrorism threat information; 
‘‘(6) systems architecture and engineering, pro-
gram planning and management, strategy formula-
tion and strategic planning, life-cycle systems de-
sign, product and technology evaluation, and proto-
type development for terrorism preparedness pur-
poses; 
‘‘(7) additional personnel costs resulting from—
‘‘(A) elevations in the threat alert level of 
the Homeland Security Advisory System by the 
Secretary, or a similar elevation in threat alert 
level issued by a State, region, or local govern-
ment with the approval of the Secretary; 
‘‘(B) travel to and participation in exer-
cises and training in the use of equipment and 
on prevention activities; 
‘‘(C) the temporary replacement of per-
sonnel during any period of travel to and par-
ticipation in exercises and training in the use of 
equipment and on prevention activities; and 
‘‘(D) the hiring of staff to serve as intel-
ligence analysts to strengthen information and 
intelligence sharing capabilities; 
‘‘(8) the costs of equipment (including software) 
required to receive, transmit, handle, and store clas-
sified information; 
‘‘(9) protecting critical infrastructure against 
potential attack by the addition of barriers, fences, 
gates, and other such devices that are constructed
consistent with the requirements of section 6(j)(9) of 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5196(j)(9), except 
that the cost of such measures may not exceed the 
greater of—
‘‘(A) $1,000,000 per project; or 
‘‘(B) such greater amount as may be ap-
proved by the Secretary, which may not exceed 
10 percent of the total amount of the covered 
grant; 
‘‘(10) the costs of commercially available inter-
operable communications equipment (that, where ap-
plicable, is based on national, voluntary consensus 
standards) that the Secretary, in consultation with 
the Assistant Secretary for Emergency Communica-
tions, deems best suited to facilitate interoperability, 
coordination, and integration between and among 
emergency communications systems, and that com-
plies with prevailing grant guidance of the Depart-
ment for interoperable communications; 
‘‘(11) educational curricula development for 
first responders to ensure that they are prepared for 
terrorist attacks; 
‘‘(12) training and exercises to assist public ele-
mentary and secondary schools in developing and
implementing programs to instruct students regard-
ing age-appropriate skills to prevent, prepare for, re-
spond to, mitigate against, or recover from an act of 
terrorism; 
‘‘(13) paying of administrative expenses directly 
related to administration of the grant, except that 
such expenses may not exceed 3 percent of the 
amount of the grant; 
‘‘(14) Public safety answering points; 
‘‘(15) paying for the conduct of any activity 
permitted under the Law Enforcement Terrorism 
Prevention Program, or any such successor to such 
program; and 
‘‘(16) other appropriate activities as determined 
by the Secretary. 
‘‘(b) PROHIBITED USES.—Funds provided as a cov-
ered grant may not be used—
‘‘(1) to supplant State or local funds; 
‘‘(2) to construct buildings or other physical fa-
cilities; 
‘‘(3) to acquire land; or 
‘‘(4) for any State or local government cost-
sharing contribution.
‘‘(c) INTELLIGENCE ANALYSTS.—An individual hired 
to serve as an intelligence analyst under subsection 
(a)(7)(D) must meet at least one of the following criteria: 
‘‘(1) The individual has successfully completed 
training that meets the standards of the Inter-
national Association of Law Enforcement Intel-
ligence Analysts to ensure baseline proficiency in in-
telligence analysis and production. 
‘‘(2) The individual has previously served in a 
Federal intelligence agency as an intelligence analyst 
for at least two years. 
‘‘(d) MULTIPLE-PURPOSE FUNDS.—Nothing in this 
section shall be construed to preclude State and local gov-
ernments from using covered grant funds in a manner 
that also enhances first responder preparedness for emer-
gencies and disasters unrelated to acts of terrorism, if 
such use assists such governments in achieving capabilities 
for terrorism preparedness established by the Secretary. 
‘‘(e) REIMBURSEMENT OF COSTS.—
‘‘(1) PAID-ON-CALL
OR
VOLUNTEER
REIM-
BURSEMENT.—In addition to the activities described 
in subsection (a), a covered grant may be used to 
provide a reasonable stipend to paid-on-call or volun-
teer first responders who are not otherwise com-
pensated for travel to or participation in training
covered by this section. Any such reimbursement 
shall not be considered compensation for purposes of 
rendering such a first responder 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 covered grant may petition the Sec-
retary for the reimbursement of the cost of any ac-
tivity relating to prevention (including detection) of, 
preparedness for, response to, or recovery from acts 
of terrorism that is a Federal duty and usually per-
formed by a Federal agency, and that is being per-
formed by a State or local government (or both) 
under agreement with a Federal agency. 
‘‘(f) ASSISTANCE
REQUIREMENT.—The Secretary 
may not require that equipment paid for, wholly or in part, 
with funds provided as a covered grant be made available 
for responding to emergencies in surrounding States, re-
gions, and localities, unless the Secretary undertakes to 
pay the costs directly attributable to transporting and op-
erating such equipment during such response. 
‘‘(g) FLEXIBILITY IN UNSPENT HOMELAND SECU-
RITY GRANT FUNDS.—Upon request by the recipient of 
a covered grant, the Secretary may authorize the grantee 
to transfer all or part of funds provided as the covered
grant from uses specified in the grant agreement to other 
uses authorized under this section, if the Secretary deter-
mines that such transfer is in the interests of homeland 
security. 
‘‘(h) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.—
‘‘(1) PASS-THROUGH.—The Secretary shall re-
quire a recipient of a covered grant that is a State 
to obligate or otherwise make available to local gov-
ernments, first responders, and other local groups, 
to the extent required under the State homeland se-
curity plan or plans specified in the application for 
the grant, not less than 80 percent of the grant 
funds, resources purchased with the grant funds 
having a value equal to at least 80 percent of the 
amount of the grant, or a combination thereof, by 
not later than the end of the 45-day period begin-
ning on the date the grant recipient receives the 
grant funds. 
‘‘(2) COST SHARING.—
‘‘(A) IN GENERAL.—The Federal share of 
the costs of an activity carried out with a cov-
ered grant to a State, region, or directly eligible 
tribe awarded after the 2-year period beginning
on the date of the enactment of this section 
shall not exceed 75 percent. 
‘‘(B) INTERIM RULE.—The Federal share 
of the costs of an activity carried out with a 
covered grant awarded before the end of the 2-
year period beginning on the date of the enact-
ment of this section shall be 100 percent. 
‘‘(C) IN-KIND MATCHING.—Each recipient 
of a covered grant may meet the matching re-
quirement under subparagraph (A) by making 
in-kind contributions of goods or services that 
are directly linked with the purpose for which 
the grant is made, including, but not limited to, 
any necessary personnel overtime, contractor 
services, administrative costs, equipment fuel 
and maintenance, and rental space. 
‘‘(3) CERTIFICATIONS
REGARDING
DISTRIBU-
TION OF GRANT FUNDS TO LOCAL GOVERNMENTS.—
Any State that receives a covered grant shall certify 
to the Secretary, by not later than 30 days after the 
expiration of the period described in paragraph (1) 
with respect to the grant, that the State has made 
available for expenditure by local governments, first 
responders, and other local groups the required 
amount of grant funds pursuant to paragraph (1).
‘‘(4) QUARTERLY REPORT ON HOMELAND SECU-
RITY SPENDING.—The Federal share described in 
paragraph (2)(A) may be increased by up to 2 per-
cent for any State, region, or directly eligible tribe 
that, not later than 30 days after the end of each 
fiscal quarter, submits to the Secretary a report on 
that fiscal quarter. Each such report must include, 
for each recipient of a covered grant or a pass-
through under paragraph (1)—
‘‘(A) the amount obligated to that recipient 
in that quarter; 
‘‘(B) the amount expended by that recipi-
ent in that quarter; and 
‘‘(C) a summary description of the items 
purchased by such recipient with such amount. 
‘‘(5) ANNUAL
REPORT
ON
HOMELAND
SECU-
RITY SPENDING.—Each recipient of a covered grant 
shall submit an annual report to the Secretary not 
later than 60 days after the end of each Federal fis-
cal year. Each recipient of a covered grant that is 
a region must simultaneously submit its report to 
each State of which any part is included in the re-
gion. Each recipient of a covered grant that is a di-
rectly eligible tribe must simultaneously submit its 
report to each State within the boundaries of which
any part of such tribe is located. Each report must 
include the following: 
‘‘(A) The amount, ultimate recipients, and 
dates of receipt of all funds received under the 
grant during the previous fiscal year. 
‘‘(B) The amount and the dates of dis-
bursements of all such funds expended in com-
pliance with paragraph (1) or pursuant to mu-
tual aid agreements or other sharing arrange-
ments that apply within the State, region, or di-
rectly eligible tribe, as applicable, during the 
previous fiscal year. 
‘‘(C) How the funds were utilized by each 
ultimate recipient or beneficiary during the pre-
ceding fiscal year. 
‘‘(D) The extent to which capabilities iden-
tified in the applicable State homeland security 
plan or plans were achieved, maintained, or en-
hanced as the result of the expenditure of grant 
funds during the preceding fiscal year. 
‘‘(E) The extent to which capabilities iden-
tified in the applicable State homeland security 
plan or plans remain unmet. 
‘‘(6) INCLUSION OF RESTRICTED ANNEXES.—A 
recipient of a covered grant may submit to the Sec-
retary an annex to the annual report under para-
graph (5) that is subject to appropriate handling re-
strictions, if the recipient believes that discussion in 
the report of unmet needs would reveal sensitive but 
unclassified information. 
‘‘(i) INCENTIVES TO EFFICIENT ADMINISTRATION OF 
HOMELAND SECURITY GRANTS.—
‘‘(1) PENALTIES
FOR
DELAY
IN
PASSING 
THROUGH LOCAL SHARE.—If a recipient of a cov-
ered grant that is a State fails to pass through to 
local governments, first responders, and other local 
groups funds or resources required by subsection 
(g)(1) within 45 days after receiving funds under 
the grant, the Secretary may—
‘‘(A) reduce grant payments to the grant 
recipient from the portion of grant funds that 
is not required to be passed through under sub-
section (g)(1); 
‘‘(B) terminate payment of funds under 
the grant to the recipient, and transfer the ap-
propriate portion of those funds directly to local 
first responders that were intended to receive 
funding under that grant; or
‘‘(C) impose additional restrictions or bur-
dens on the recipient’s use of funds under the 
grant, which may include—
‘‘(i) prohibiting use of such funds to 
pay the grant recipient’s grant-related 
overtime or other expenses; 
‘‘(ii) requiring the grant recipient to 
distribute to local government beneficiaries 
all or a portion of grant funds that are not 
required to be passed through under sub-
section (g)(1); or 
‘‘(iii) for each day that the grant re-
cipient fails to pass through funds or re-
sources in accordance with subsection 
(g)(1), reducing grant payments to the 
grant recipient from the portion of grant 
funds that is not required to be passed 
through under subsection (g)(1), except 
that the total amount of such reduction 
may not exceed 20 percent of the total 
amount of the grant. 
‘‘(2) EXTENSION OF PERIOD.—The Governor of 
a State may request in writing that the Secretary 
extend 
the 
45-day 
period 
under 
section 
2003(e)(5)(E) or paragraph (1) for an additional
15-day period. The Secretary may approve such a 
request, and may extend such period for additional 
15-day periods, if the Secretary determines that the 
resulting delay in providing grant funding to the 
local government entities that will receive funding 
under the grant will not have a significant detri-
mental impact on such entities’ terrorism prepared-
ness efforts. 
‘‘(3) PROVISION
OF
NON-LOCAL
SHARE
TO 
LOCAL GOVERNMENT.—
‘‘(A) IN
GENERAL.—The Secretary may 
upon request by a local government pay to the 
local government a portion of the amount of a 
covered grant awarded to a State in which the 
local government is located, if—
‘‘(i) the local government will use the 
amount paid to expedite planned enhance-
ments to its terrorism preparedness as de-
scribed in any applicable State homeland 
security plan or plans; 
‘‘(ii) the State has failed to pass 
through funds or resources in accordance 
with subsection (g)(1); and 
‘‘(iii) the local government complies 
with subparagraphs (B) and (C).
‘‘(B) SHOWING REQUIRED.—To receive a 
payment under this paragraph, a local govern-
ment must demonstrate that—
‘‘(i) it is identified explicitly as an ul-
timate recipient or intended beneficiary in 
the approved grant application; 
‘‘(ii) it was intended by the grantee to 
receive a severable portion of the overall 
grant for a specific purpose that is identi-
fied in the grant application; 
‘‘(iii) it petitioned the grantee for the 
funds or resources after expiration of the 
period within which the funds or resources 
were required to be passed through under 
subsection (g)(1); and 
‘‘(iv) it did not receive the portion of 
the overall grant that was earmarked or 
designated for its use or benefit. 
‘‘(C) EFFECT OF PAYMENT.—Payment of 
grant funds to a local government under this 
paragraph—
‘‘(i) shall not affect any payment to 
another local government under this para-
graph; and
‘‘(ii) shall not prejudice consideration 
of a request for payment under this para-
graph that is submitted by another local 
government. 
‘‘(D) DEADLINE
FOR
ACTION
BY
SEC-
RETARY.—The Secretary shall approve or dis-
approve each request for payment under this 
paragraph by not later than 15 days after the 
date the request is received by the Department. 
‘‘(j) REPORTS TO CONGRESS.—The Secretary shall 
submit an annual report to Congress by January 31 of 
each year covering the preceding fiscal year—
‘‘(1) describing in detail the amount of Federal 
funds provided as covered grants that were directed 
to each State, region, and directly eligible tribe in 
the preceding fiscal year; 
‘‘(2) containing information on the use of such 
grant funds by grantees; and 
‘‘(3) describing—
‘‘(A) the Nation’s progress in achieving, 
maintaining, and enhancing the capabilities es-
tablished by the Secretary as a result of the ex-
penditure of covered grant funds during the 
preceding fiscal year; and
‘‘(B) an estimate of the amount of expend-
itures required to attain across the United 
States the essential capabilities established by 
the Secretary.’’. 
TITLE 
II—ENSURING 
COMMU-
NICATIONS 
INTEROPER-
ABILITY 
FOR 
FIRST 
RE-
SPONDERS 
SEC. 201. IMPROVE COMMUNICATIONS FOR EMERGENCY 
RESPONSE GRANT PROGRAM. 
(a) ESTABLISHMENT.—Title V of the Homeland Se-
curity Act of 2002 (6 U.S.C. 311 et seq.) is amended by 
adding at the end the following new section: 
‘‘SEC. 522. IMPROVE COMMUNICATIONS FOR EMERGENCY 
RESPONSE GRANT PROGRAM. 
‘‘(a) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Director of the Office of Grants and Training 
and in coordination with the Director for Emergency Com-
munications, shall establish the Improve Communications 
for Emergency Response Grant Program to make grants 
to States and regions to carry out initiatives to improve 
interoperable emergency communications, including initia-
tives to achieve solutions to statewide, regional, national, 
and, where appropriate, international interoperability.
‘‘(b) USE OF GRANT FUNDS.—A State or region re-
ceiving a grant under this section may use the grant for 
short-term or long-term goals for improving interoperable 
emergency communications, including interoperability 
within that State or region, and to assist with—
‘‘(1) statewide or regional communications 
planning; 
‘‘(2) design and engineering for interoperable 
emergency communications systems; 
‘‘(3) procurement and installation of interoper-
able emergency communications equipment; 
‘‘(4) interoperable emergency communications 
exercises; 
‘‘(5) modeling and simulation exercises for 
operational command and control functions; 
‘‘(6) technical assistance and training for inter-
operable emergency communications; and 
‘‘(7) other activities determined by the Sec-
retary to be integral to interoperable emergency 
communications. 
‘‘(c) REGION DEFINED.—For the purposes of this 
section, the term ‘region’ means any combination of con-
tiguous local government units, including such a combina-
tion established by law or mutual aid agreement between
two or more local governments or governmental agen-
cies.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Home-
land Security for grants under section 522 of the Home-
land Security Act of 2002, as added by subsection (a)—
(1) such sums as may be necessary for the first 
fiscal year that begins after the later of—
(A) the date on which the Secretary of 
Homeland Security completes and submits to 
Congress the National Emergency Communica-
tions Plan required under section 1802 of the 
Homeland Security Act of 2002 (6 U.S.C. 572); 
(B) the date on which the Secretary of 
Homeland Security completes and submits to 
Congress the first baseline interoperability as-
sessment required under section 1803 of such 
Act (6 U.S.C. 573); or 
(C) the date on which the Secretary of 
Homeland Security, after consultation with the 
Director of Emergency Communications, deter-
mines and notifies Congress that substantial 
progress has been made towards the develop-
ment and promulgation of voluntary consensus-
based interoperable communications standards
pursuant to section 1801(c)(11) of such Act (6 
U.S.C. 571(c)(11)); and 
(2) such sums as may be necessary for each 
subsequent fiscal year. 
(c) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of that Act is amended by inserting after 
the item relating to section 521 the following:
‘‘Sec. 522. Improve Communications for Emergency Response Grant Pro-
gram.’’.
TITLE III—STRENGTHENING USE 
OF A UNIFIED INCIDENT COM-
MAND DURING EMERGENCIES 
SEC. 301. NATIONAL EXERCISE PROGRAM DESIGN. 
Section 648(b)(2)(A) of the Department of Home-
land Security Appropriations Act, 2007 (Public Law 109–
295) is amended by striking clauses (iv) and (v) and in-
serting the following: 
‘‘(iv) designed to provide for system-
atic evaluation of readiness and enhance 
operational understanding of the Incident 
Command System and relevant mutual aid 
agreements; 
‘‘(v) designed to address the unique 
requirements of populations with special 
needs; and
‘‘(vi) designed to include the prompt 
development of after-action reports and 
plans for quickly incorporating lessons 
learned into future operations; and’’. 
SEC. 302. NATIONAL EXERCISE PROGRAM MODEL EXER-
CISES. 
Section 648(b)(2)(B) of the Department of Home-
land Security Appropriations Act, 2007 (Public Law 109–
295) is amended by striking so much as precedes clause 
(i) and inserting the following: 
‘‘(B) shall include a selection of model ex-
ercises that State, local, and tribal governments 
can readily adapt for use, and shall provide as-
sistance to State, local, and tribal governments 
with the design, implementation, and evaluation 
of exercises, whether a model exercise program 
or an exercise designed locally, that—’’. 
SEC. 303. RESPONSIBILITIES OF REGIONAL ADMINISTRA-
TORS OF THE FEDERAL EMERGENCY MAN-
AGEMENT AGENCY. 
Section 507(c)(2) of the Homeland Security Act of 
2002 (enacted by section 611 of the Department of Home-
land Security Appropriations Act, 2007 (Public Law 109–
295)) is amended by striking ‘‘and’’ after the semicolon 
at the end of subparagraph (H), by redesignating subpara-
graph (I) as subparagraph (J), and by inserting after sub-
paragraph (H) the following: 
‘‘(I) assisting State, local, or tribal govern-
ments, where appropriate, to pre-identify and 
evaluate suitable sites where a multi-jurisdic-
tional unified command system can be quickly 
established if the need for such a system arises; 
and’’. 
TITLE IV—STRENGTHENING 
AVIATION SECURITY 
SEC. 401. INSTALLATION OF IN-LINE BAGGAGE SCREENING 
EQUIPMENT. 
Not later than 30 days after the date of enactment 
of this Act, the Secretary for Homeland Security shall 
submit to the appropriate congressional committees the 
cost sharing study described in section 4019(d) of the In-
telligence Reform and Terrorism Prevention Act of 2004 
(118 Stat. 3722), together with the Secretary’s analysis 
of the study, a list of provisions of the study the Secretary 
intends to implement, and a plan and schedule for imple-
mentation of such listed provisions. 
SEC. 402. AVIATION SECURITY CAPITAL FUND. 
(a) IN GENERAL.—Section 44923(h)(1) of title 49, 
United States Code, is amended in the second sentence 
by striking ‘‘2007’’ and inserting ‘‘2011’’.
(b) DISCRETIONARY GRANTS.—Section 44923(h)(3) 
of such title is amended by striking ‘‘for a fiscal year, 
$125,000,000’’ and inserting ‘‘, $125,000,000 for each of 
fiscal years 2004, 2005, and 2006 and such sums as may 
be necessary for each of fiscal years 2007 through 2011’’. 
SEC. 403. AIRPORT CHECKPOINT SCREENING EXPLOSIVE 
DETECTION. 
Section 44940 of title 49, United States Code, is 
amended—
(1) in subsection (d)(4) by inserting ‘‘, other 
than subsection (i),’’ before ‘‘except to’’; and 
(2) by adding at the end the following: 
‘‘(i) CHECKPOINT SCREENING SECURITY FUND.—
‘‘(1) ESTABLISHMENT.—There is established in 
the Department of Homeland Security a fund to be 
known as the ‘Checkpoint Screening Security Fund’. 
‘‘(2) DEPOSITS.—In fiscal year 2008, after 
amounts are made available under section 44923(h), 
the next $250,000,000 derived from fees received 
under subsection (a)(1) shall be available to be de-
posited in the Fund. 
‘‘(3) FEES.—The Secretary of Homeland Secu-
rity shall impose the fee authorized by subsection 
(a)(1) so as to collect at least $250,000,000 in fiscal 
year 2008 for deposit into the Fund.
‘‘(4) AVAILABILITY OF AMOUNTS.—Amounts in 
the Fund shall be available until expended for the 
research, development, purchase, deployment, and 
installation of equipment to improve the ability of 
security screening personnel at screening check-
points to detect explosives.’’. 
SEC. 404. STRENGTHENING EXPLOSIVE DETECTION AT AIR-
PORT SCREENING CHECKPOINTS. 
Not later than 7 days after the date of enactment 
of this Act, the Assistant Secretary for Homeland Security 
(Transportation Security Administration) shall submit to 
the appropriate congressional committees the strategic 
plan described in the section amended by section 4013(a) 
of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (118 Stat. 3719). 
SEC. 405. EXTENSION OF AUTHORIZATION OF AVIATION SE-
CURITY FUNDING. 
Section 48301(a) of title 49, United States Code, is 
amended by striking ‘‘and 2006’’ and inserting ‘‘2006, 
2007, 2008, 2009, 2010, and 2011’’. 
SEC. 406. INSPECTION OF CARGO CARRIED ABOARD PAS-
SENGER AIRCRAFT. 
(a) IN GENERAL.—Section 44901 of title 49, United 
States Code, is amended—
(1) by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively; and 
(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) AIR CARGO ON PASSENGER AIRCRAFT.—
‘‘(1) IN
GENERAL.—Not later than 3 years 
after the date of enactment of the Implementing the 
9/11 Commission Recommendations Act of 2007, the 
Secretary of Homeland Security shall establish a 
system to inspect 100 percent of cargo transported 
on passenger aircraft operated by an air carrier or 
foreign air carrier in air transportation or intrastate 
air transportation to ensure the security of all such 
passenger aircraft carrying cargo. 
‘‘(2) MINIMUM
STANDARDS.—The system re-
ferred to in paragraph (1) shall require, at a min-
imum, that equipment, technology, procedures, and 
personnel are used to inspect cargo carried on pas-
senger aircraft to provide a level of security equiva-
lent to the level of security for the inspection of pas-
senger checked baggage as follows: 
‘‘(A) 35 percent of such cargo is so in-
spected by the end of fiscal year 2007. 
‘‘(B) 65 percent of such cargo is so in-
spected by the end of fiscal year 2008.
‘‘(C) 100 percent of such cargo is so in-
spected by the end of fiscal year 2009. 
‘‘(3) REGULATIONS.—
‘‘(A) INTERIM
FINAL
RULE.—The Sec-
retary of Homeland Security may issue an in-
terim final rule as a temporary regulation to 
implement this subsection without regard to the 
provisions of chapter 5 of title 5. 
‘‘(B) FINAL RULE.—
‘‘(i) IN
GENERAL.—If the Secretary 
issues an interim final rule under subpara-
graph (A), the Secretary shall issue, not 
later than one year after the effective date 
of the interim final rule, a final rule as a 
permanent regulation to implement this 
subsection in accordance with the provi-
sions of chapter 5 of title 5. 
‘‘(ii) FAILURE TO ACT.—If the Sec-
retary does not issue a final rule in accord-
ance with clause (i) on or before the last 
day of the 1-year period referred to in 
clause (i), the interim final rule issued 
under subparagraph (A) shall not be effec-
tive after the last day of such period.
‘‘(iii) 
SUPERCEDING
OF
INTERIM 
FINAL RULE.—The final rule issued in ac-
cordance with this subparagraph shall su-
persede the interim final rule issued under 
subparagraph (A). 
‘‘(4) REPORT.—Not later than 1 year after the 
date of establishment of the system under paragraph 
(1), the Secretary shall transmit to Congress a re-
port that describes the system.’’. 
(b) ASSESSMENT OF EXEMPTIONS.—
(1) TSA ASSESSMENT OF EXEMPTIONS.—
(A) IN
GENERAL.—Not later than 120 
days after the date of enactment of this Act, 
the Secretary of Homeland Security shall sub-
mit to the appropriate committees of Congress 
and to the Comptroller General a report regard-
ing an assessment of each exemption granted 
for inspection of air cargo and an analysis to 
assess the risk of maintaining such exemption. 
(B) CONTENTS.—The report referred to in 
subparagraph (A) shall include—
(i) the rationale for each exemption; 
(ii) what percentage of cargo is not 
screened as a result of each exemption;
(iii) the impact of each exemption on 
aviation security; 
(iv) the projected impact on the flow 
of commerce of eliminating each exemp-
tion, respectively, should the Secretary 
choose to take such action; and 
(v) plans and rationale for maintain-
ing, changing, or eliminating each exemp-
tion. 
(2) GAO ASSESSMENT.—Not later than 120 
days after the date on which the report under para-
graph (1) is submitted, the Comptroller General 
shall review the report and provide to Congress an 
assessment of the methodology of determinations 
made by the Secretary for maintaining, changing, or 
eliminating an exemption. 
SEC. 407. APPEAL AND REDRESS PROCESS FOR PAS-
SENGERS WRONGLY DELAYED OR PROHIB-
ITED FROM BOARDING A FLIGHT. 
(a) IN GENERAL.—Subtitle C of title IV of the 
Homeland Security Act of 2002 (6 U.S.C. 231 et. seq.) 
is amended by adding at the end the following:
‘‘SEC. 432. APPEAL AND REDRESS PROCESS FOR PAS-
SENGERS WRONGLY DELAYED OR PROHIB-
ITED FROM BOARDING A FLIGHT. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
timely and fair process for individuals who believe they 
have been delayed or prohibited from boarding a commer-
cial aircraft because they were wrongly identified as a 
threat under the regimes utilized by the Transportation 
Security Administration, the Bureau of Customs and Bor-
der Protection, or any other Department entity. 
‘‘(b) OFFICE OF APPEALS AND REDRESS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an Office of Appeals and Redress to oversee 
the process established by the Secretary pursuant to 
subsection (a). 
‘‘(2) RECORDS.—The process established by the 
Secretary pursuant to subsection (a) shall include 
the establishment of a method by which the Office 
of Appeals and Redress, under the direction of the 
Secretary, will be able to maintain a record of air 
carrier passengers and other individuals who have 
been misidentified and have corrected erroneous in-
formation. 
‘‘(3) 
INFORMATION.—To 
prevent 
repeated 
delays of a misidentified passenger or other indi-
vidual, the Office of Appeals and Redress shall—
‘‘(A) ensure that the records maintained 
under this subsection contain information deter-
mined by the Secretary to authenticate the 
identity of such a passenger or individual; and 
‘‘(B) furnish to the Transportation Secu-
rity Administration, the Bureau of Customs 
and Border Protection, or any other appro-
priate Department entity, upon request, such 
information as may be necessary to allow such 
agencies to assist air carriers in improving their 
administration of the advanced passenger 
prescreening system and reduce the number of 
false positives. 
‘‘(4) INITIATION
OF
APPEAL
AND
REDRESS 
PROCESS AT AIRPORTS.—The Office of Appeals and 
Redress shall establish at each airport at which the 
Department has a significant presence a process to 
allow air carrier passengers to begin the appeals 
process established pursuant to subsection (a) at the 
airport.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by inserting after 
the item relating to section 430 the following:
‘‘Sec. 432. Appeal and redress process for passengers wrongly delayed or pro-
hibited from boarding a flight.’’.
SEC. 408. TRANSPORTATION SECURITY ADMINISTRATION 
PERSONNEL MANAGEMENT. 
(a) ELIMINATION OF CERTAIN PERSONNEL MANAGE-
MENT AUTHORITIES.—Effective 90 days after the date of 
the enactment of this Act—
(1) section 111(d) of the Aviation and Trans-
portation Security Act (49 U.S.C. 44935 note) is re-
pealed and any authority of the Secretary of Home-
land Security derived from such section 111(d) shall 
terminate; 
(2) any personnel management system, to the 
extent established or modified pursuant to such sec-
tion 111(d) (including by the Secretary through the 
exercise of any authority derived from such section 
111(d)) shall terminate; and 
(3) the Secretary shall ensure that all TSA em-
ployees are subject to the same personnel manage-
ment system as described in subsection (e)(1) or 
(e)(2). 
(b) ESTABLISHMENT OF CERTAIN UNIFORMITY RE-
QUIREMENTS.—
(1) SYSTEM UNDER SUBSECTION (e)(1).—The 
Secretary shall, with respect to any personnel man-
agement system described in subsection (e)(1), take 
any measures which may be necessary to provide for
the uniform treatment of all TSA employees under 
such system. 
(2) SYSTEM UNDER SUBSECTION (e)(1).—Sec-
tion 9701(b) of title 5, United States Code, is 
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (4); 
(B) by striking the period at the end of 
paragraph (5) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(6) provide for the uniform treatment of all 
TSA employees (as defined in section 408(d) of the 
Implementing the 9/11 Commission Recommenda-
tions Act of 2007).’’. 
(3) EFFECTIVE DATE.—
(A) PROVISIONS RELATING TO A SYSTEM 
UNDER
SUBSECTION
(e)(1).—Any measures 
necessary to carry out paragraph (1) shall take 
effect 90 days after the date of the enactment 
of this Act. 
(B) PROVISIONS RELATING TO A SYSTEM 
UNDER
SUBSECTION
(e)(2).—Any measures 
necessary to carry out the amendments made 
by paragraph (2) shall take effect 90 days after
the date of the enactment of this Act or, if 
later, the commencement date of the system in-
volved. 
(c) REPORT TO CONGRESS.—
(1) REPORT
REQUIRED.—Not later than 6 
months after the date of the enactment of this Act, 
the Government Accountability Office shall submit 
to the Committee on Homeland Security of the 
House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the 
Senate a report on—
(A) the pay system that applies with re-
spect to TSA employees as of the date of the 
enactment of this Act; and 
(B) any changes to such system which 
would be made under any regulations which 
have been prescribed under chapter 97 of title 
5, United States Code. 
(2) MATTERS FOR INCLUSION.—The report re-
quired under paragraph (1) shall include—
(A) a brief description of each pay system 
described in paragraphs (1)(A) and (1)(B), re-
spectively;
(B) a comparison of the relative advan-
tages and disadvantages of each of those pay 
systems; and 
(C) such other matters as the Government 
Accountability Office considers appropriate. 
(d) TSA EMPLOYEE DEFINED.—In this section, the 
term ‘‘TSA employee’’ means an individual who holds—
(1) any position which was transferred (or the 
incumbent of which was transferred) from the 
Transportation Security Administration of the De-
partment of Transportation to the Department of 
Homeland Security by section 403 of the Homeland 
Security Act of 2002 (6 U.S.C. 203); or 
(2) any other position within the Department of 
Homeland Security the duties and responsibilities of 
which include carrying out one or more of the func-
tions that were transferred from the Transportation 
Security Administration of the Department of 
Transportation to the Secretary by such section. 
(e) 
PERSONNEL
MANAGEMENT
SYSTEM
DE-
SCRIBED.—A personnel management system described in 
this subsection is—
(1) any personnel management system, to the 
extent that it applies with respect to any TSA em-
ployees by virtue of section 114(n) of title 49, 
United States Code; and 
(2) any human resources management system, 
established under chapter 97 of title 5, United 
States Code. 
SEC. 409. STRATEGIC PLAN TO TEST AND IMPLEMENT AD-
VANCED PASSENGER PRESCREENING SYS-
TEM. 
Not later than 90 days after the date of the enact-
ment of the Act, the Secretary of Homeland Security shall 
submit to Congress a plan that—
(1) describes the system to be utilized for the 
Department of Homeland Security to assume the 
performance of comparing passenger information, as 
defined by the Assistant Secretary of Homeland Se-
curity (Transportation Security Administration), to 
the automatic selectee and no fly lists, utilizing ap-
propriate records in the consolidated and integrated 
terrorist watchlist maintained by the Federal Gov-
ernment; 
(2) provides a projected timeline for each phase 
of testing and implementation of the system; 
(3) explains how the system will be integrated 
with the prescreening system for passenger on inter-
national flights; and
(4) describes how the system complies with sec-
tion 552a of title 5, United States Code. 
TITLE V—STRENGTHENING THE 
SECURITY OF CARGO CON-
TAINERS 
SEC. 501. REQUIREMENTS RELATING TO ENTRY OF CON-
TAINERS INTO THE UNITED STATES. 
(a) REQUIREMENTS.—Section 70116 of title 46, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(c) REQUIREMENTS RELATING TO ENTRY OF CON-
TAINERS.—
‘‘(1) IN GENERAL.—A container may enter the 
United States, either directly or via a foreign port, 
only if—
‘‘(A) the container is scanned with equip-
ment that meets the standards established pur-
suant to paragraph (2)(A) and a copy of the 
scan is provided to the Secretary; and 
‘‘(B) the container is secured with a seal 
that meets the standards established pursuant 
to paragraph (2)(B), before the container is 
loaded on the vessel for shipment to the United 
States.
‘‘(2) STANDARDS
FOR
SCANNING
EQUIPMENT 
AND SEALS.—
‘‘(A) SCANNING
EQUIPMENT.—The Sec-
retary shall establish standards for scanning 
equipment required to be used under paragraph 
(1)(A) to ensure that such equipment uses the 
best-available technology, including technology 
to scan a container for radiation and density 
and, if appropriate, for atomic elements. 
‘‘(B) SEALS.—The Secretary shall estab-
lish standards for seals required to be used 
under paragraph (1)(B) to ensure that such 
seals use the best-available technology, includ-
ing technology to detect any breach into a con-
tainer and identify the time of such breach. 
‘‘(C) REVIEW
AND
REVISION.—The Sec-
retary shall—
‘‘(i) review and, if necessary, revise 
the standards established pursuant to sub-
paragraphs (A) and (B) not less than once 
every two years; and 
‘‘(ii) ensure that any such revised 
standards require the use of technology, as 
soon as such technology becomes available, 
to—
‘‘(I) identify the place of a 
breach into a container; 
‘‘(II) notify the Secretary of such 
breach before the container enters the 
Exclusive Economic Zone of the 
United States; and 
‘‘(III) track the time and location 
of the container during transit to the 
United States, including by truck, 
rail, or vessel. 
‘‘(D) DEFINITION.—In subparagraph (C), 
the term ‘Exclusive Economic Zone of the 
United States’ has the meaning given the term 
‘Exclusive Economic Zone’ in section 2101(10a) 
of this title.’’. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out section 
70116(c) of title 46, United States Code, as added by sub-
section (a) of this section, such sums as may be necessary 
for each of the fiscal years 2008 through 2013. 
(c) REGULATIONS; APPLICATION.—
(1) REGULATIONS.—
(A) INTERIM
FINAL
RULE.—Consistent 
with the results of and lessons derived from the 
pilot system implemented under section 231 of
the SAFE Port Act (Public Law 109–347), the 
Secretary of Homeland Security shall issue an 
interim final rule as a temporary regulation to 
implement section 70116(c) of title 46, United 
States Code, as added by subsection (a) of this 
section, not later than 180 days after the date 
of the submission of the report under section 
231 of the SAFE Port Act, without regard to 
the provisions of chapter 5 of title 5, United 
States Code. 
(B) FINAL
RULE.—The Secretary shall 
issue a final rule as a permanent regulation to 
implement section 70116(c) of title 46, United 
States Code, as added by subsection (a) of this 
section, not later than one year after the date 
of the submission of the report under section 
231 of the SAFE Port Act, in accordance with 
the provisions of chapter 5 of title 5, United 
States Code. The final rule issued pursuant to 
that rulemaking may supersede the interim 
final rule issued pursuant to subparagraph (A). 
(2) PHASED-IN APPLICATION.—
(A) IN
GENERAL.—The requirements of 
section 70116(c) of title 46, United States 
Code, as added by subsection (a) of this section,