‘‘(C) STATES.—Each State and specially
qualified unit that has 1 or more juvenile courts
that use a discretionary system of graduated
sanctions shall collect the information reported
under subparagraph (A) for submission to the
Attorney General each year. A State shall also
collect and submit to the Attorney General the
information collected under subparagraph (B).
‘‘(e) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘discretionary’ means that a sys-
tem of graduated sanctions is not required to be im-
posed by each and every juvenile court in a State or
unit of local government.
‘‘(2) The term ‘sanctions’ means tangible, pro-
portional consequences that hold the juvenile of-
fender accountable for the offense committed. A
sanction may include counseling, restitution, commu-
nity service, a fine, supervised probation, or confine-
ment.
‘‘SEC. 1803. ALLOCATION AND DISTRIBUTION OF FUNDS.
‘‘(a) STATE ALLOCATION.—
‘‘(1) IN GENERAL.—In accordance with regula-
tions promulgated pursuant to this part and except
as provided in paragraph (3), the Attorney General
shall allocate—
‘‘(A) 0.25 percent for each State; and
‘‘(B) of the total funds remaining after the
allocation under subparagraph (A), to each
State, an amount which bears the same ratio to
the amount of remaining funds described in this
subparagraph as the population of people under
the age of 18 living in such State for the most
recent calendar year in which such data is
available bears to the population of people
under the age of 18 of all the States for such
fiscal year.
‘‘(2) PROHIBITION.—No funds allocated to a
State under this subsection or received by a State
for distribution under subsection (b) may be distrib-
uted by the Attorney General or by the State in-
volved for any program other than a program con-
tained in an approved application.
‘‘(3) INCREASE FOR STATE RESERVE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if a State demonstrates and certifies
to the Attorney General that the State’s law en-
forcement expenditures in the fiscal year pre-
ceding the date in which an application is sub-
mitted under this part is more than 25 percent
of the aggregate amount of law enforcement ex-
penditures by the State and its eligible units of
local government, the percentage referred to in
paragraph (1)(A) shall equal the percentage de-
termined by dividing the State’s law enforce-
ment expenditures by such aggregate.
‘‘(B) LAW ENFORCEMENT EXPENDITURES
OVER 50 PERCENT.—If the law enforcement ex-
penditures of a State exceed 50 percent of the
aggregate amount described in subparagraph
(A), the Attorney General shall consult with as
many units of local government in such State
as practicable regarding the State’s proposed
uses of funds.
‘‘(b) LOCAL DISTRIBUTION.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (a)(3), each State which receives funds under
subsection (a)(1) in a fiscal year shall distribute not
less than 75 percent of such amounts received
among units of local government, for the purposes
specified in section 1801. In making such distribu-
tion the State shall allocate to such units of local
government an amount which bears the same ratio
to the aggregate amount of such funds as—
‘‘(A) the sum of—
‘‘(i) the product of—
‘‘(I) three-quarters; multiplied by
‘‘(II) the average law enforce-
ment expenditure for such unit of
local government for the 3 most re-
cent calendar years for which such
data is available; plus
‘‘(ii) the product of—
‘‘(I) one-quarter; multiplied by
‘‘(II) the average annual number
of part 1 violent crimes in such unit
of local government for the 3 most re-
cent calendar years for which such
data is available, bears to—
‘‘(B) the sum of the products determined
under subparagraph (A) for all such units of
local government in the State.
‘‘(2) EXPENDITURES.—The allocation any unit
of local government shall receive under paragraph
(1) for a payment period shall not exceed 100 per-
cent of law enforcement expenditures of the unit for
such payment period.
‘‘(3) REALLOCATION.—The amount of any unit
of local government’s allocation that is not available
to such unit by operation of paragraph (2) shall be
available to other units of local government that are
not affected by such operation in accordance with
this subsection.
‘‘(c) UNAVAILABILITY
OF DATA
FOR UNITS
OF
LOCAL GOVERNMENT.—If the State has reason to believe
that the reported rate of part 1 violent crimes or law en-
forcement expenditures for a unit of local government is
insufficient or inaccurate, the State shall—
‘‘(1) investigate the methodology used by the
unit to determine the accuracy of the submitted
data; and
‘‘(2) if necessary, use the best available com-
parable data regarding the number of violent crimes
or law enforcement expenditures for the relevant
years for the unit of local government.
‘‘(d) LOCAL GOVERNMENT WITH ALLOCATIONS LESS
THAN $5,000.—If under this section a unit of local gov-
ernment is allocated less than $5,000 for a payment pe-
riod, the amount allotted shall be expended by the State
on services to units of local government whose allotment
is less than such amount in a manner consistent with this
part.
‘‘(e) DIRECT GRANTS
TO SPECIALLY QUALIFIED
UNITS.—
‘‘(1) IN GENERAL.—If a State does not qualify
or apply for funds reserved for allocation under sub-
section (a) by the application deadline established by
the Attorney General, the Attorney General shall re-
serve not more than 75 percent of the allocation that
the State would have received under subsection (a)
for such fiscal year to provide grants to specially
qualified units which meet the requirements for
funding under section 1802.
‘‘(2) AWARD BASIS.—In addition to the quali-
fication requirements for direct grants for specially
qualified units the Attorney General may use the av-
erage amount allocated by the States to units of
local government as a basis for awarding grants
under this section.
‘‘SEC. 1804. REGULATIONS.
‘‘(a) IN GENERAL.—The Attorney General shall issue
regulations establishing procedures under which a State
or unit of local government that receives funds under sec-
tion 1803 is required to provide notice to the Attorney
General regarding the proposed use of funds made avail-
able under this part.
‘‘(b) ADVISORY BOARD.—The regulations referred to
in subsection (a) shall include a requirement that such eli-
gible State or unit of local government establish and con-
vene an advisory board to review the proposed uses of such