In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mercury Reduction and Energy 
Security Act of 2010''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Environmental Protection Agency (``EPA'') was 
        required by the terms of the Clean Air Act Amendments of 1990 
        and a 1998 consent agreement to determine whether regulation of 
        mercury from electric utility steam generating units under 
        section 112 of the Clean Air Act was appropriate and necessary.
            (2) In a December 2000, regulatory finding, the EPA 
        concluded that regulation of mercury from electric utility 
        steam generating units was appropriate and necessary.
            (3) In 2005, the EPA withdrew its 2000 regulatory finding 
        in favor of a national cap-and-trade system for mercury 
        emissions from electric utility steam generating units, the 
        Clean Air Mercury Rule (``CAMR'').
            (4) CAMR was subsequently challenged in petitions for 
        review filed by 17 States.
            (5) The United States Court of Appeals for the District of 
        Columbia Circuit vacated the rule on February 8, 2008, finding 
        that once the EPA had listed electric utility steam generating 
        units as a source of hazardous air pollutants, it was required 
        by law to proceed with Maximum Achievable Control Technology 
        (``MACT'') regulations under section 112 of the Clean Air Act 
        unless it delisted the source category, under procedures set 
        forth in section 112(c)(9).
            (6) Mercury control technologies for coal-fired electric 
        utility steam generating units have advanced rapidly in the 
        last few years.
    (b) Purpose.--The purpose of this Act is to protect public health 
and welfare, and the environment, through mercury emission reductions 
from electric utility steam generating units.

SEC. 3. MERCURY EMISSION REDUCTIONS.

    The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at 
the end the following new title:

                    ``TITLE VII--MERCURY REDUCTIONS

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Affected unit.--The term `affected unit' means a 
        coal-fired electric steam generating unit (including a 
        cogeneration unit) that--
                    ``(A) has a nameplate capacity greater than 25 
                megawatts; and
                    ``(B) generates electricity for sale.
            ``(2) Cogeneration unit.--The term `cogeneration unit' 
        means a stationary, coal-fired boiler or a stationary, coal-
        fired combustion turbine having equipment used to produce 
        electricity and useful thermal energy for industrial, 
        commercial, heating, or cooling purposes through the sequential 
        use of energy that produces during the 12-month period starting 
        on the date the unit first produces electricity and during any 
        calendar year after which the unit first produces electricity--
                    ``(A) for a topping-cycle cogeneration unit--
                            ``(i) useful thermal energy not less than 5 
                        percent of total energy output; and
                            ``(ii) useful power that, when added to 
                        one-half of useful thermal energy produced, is 
                        not less than--
                                    ``(I) 42.5 percent of total energy 
                                input if useful thermal energy produced 
                                is 15 percent or more of total energy 
                                output; or
                                    ``(II) 45 percent of total energy 
                                input if useful thermal energy produced 
                                is less than 15 percent of total energy 
                                output; and
                    ``(B) for a bottoming-cycle cogeneration unit, 
                useful power not less than 45 percent of total energy 
                input.
            ``(3) Inlet mercury.--The term `inlet mercury' means the 
        quantity of mercury found--
                    ``(A) in the as-fired coal used by an affected 
                unit; or
                    ``(B) for an affected unit using coal that is 
                subjected to an advanced coal cleaning technology, in 
                the as-mined coal used by the affected unit.

``SEC. 702. MERCURY REDUCTION PROGRAM.

    ``(a) Annual Limitation for Affected Units.--Except as provided in 
subsection (f), an affected unit in operation before or after the date 
of enactment of this title shall be subject to the following emission 
limitations on an annual average calendar year basis with respect to 
mercury:
            ``(1) Calendar years 2012 through 2014.--For the period 
        beginning on January 1, 2012, and ending on December 31, 2014, 
        the less stringent limitation of the following (calculated on a 
        one-year rolling average):
                    ``(A) 80 percent capture of inlet mercury.
                    ``(B) An emission rate of 1.60 pounds of mercury 
                per trillion British thermal units of input coal.
            ``(2) Calendar year 2015 and thereafter.--For calendar year 
        2015 and each calendar year thereafter, the less stringent 
        limitation of the following (calculated on a one-year rolling 
        average):
                    ``(A) 90 percent capture of inlet mercury.
                    ``(B) An emission rate of 0.80 pounds of mercury 
                per trillion British thermal units of input coal.
    ``(b) Averaging Across Units Within a Facility or State.--(1) An 
owner or operator of more than one affected unit at a single facility 
may demonstrate compliance with the applicable annual average emission 
limitations under subsection (a) by averaging emissions from all 
affected units at that facility, weighted by total input coal British 
thermal units.
    ``(2) An owner or operator of more than one affected unit or units 
within a State may demonstrate compliance with the applicable annual 
average emission limitations under subsection (a) by averaging 
emissions from all affected units owned or operated by that owner or 
operator within such State, weighted by total input coal British 
thermal units, if all affected units are owned or operated by the same 
entity.
    ``(3) If an affected unit is owned or operated by more than one 
entity, the State in which the affected unit is located shall allocate 
to each such owner or operator an appropriate portion of the generation 
from the affected unit for purposes of averaging emissions pursuant to 
paragraph (1) or (2).
    ``(c) Reference Methods for Measuring Mercury Emissions.--(1) The 
owner or operator of an affected unit shall use any of the following 
methods as a reference method to calibrate the instruments used to 
measure the mercury concentration in emissions from affected units:
                    ``(A) ASTM D6784-02, `Standard Test Method for 
                Elemental, Oxidized, Particle-Bound and Total Mercury 
                in Flue Gas Generated from Coal-Fired Stationary 
                Sources' (Ontario Hydro Method).
                    ``(B) 40 C.F.R. Part 60, Appendix A-8, Method 29, 
                `Determination of Metals Emissions from Stationary 
                Sources'.
                    ``(C) 40 C.F.R. Part 60, Appendix A-8, Method 30A, 
                `Determination of Total Vapor Phase Mercury Emissions 
                from Stationary Sources (Instrumental Analyzer 
                Procedure)'.
                    ``(D) 40 C.F.R. Part 60, Appendix A-8, Method 30B, 
                `Determination of Total Vapor Phase Mercury Emissions 
                from Coal-Fired Combustion Sources Using Carbon Sorbent 
                Traps'.
    ``(2) The Administrator may revise or supplement the list of 
permitted methods set forth in paragraph (1) to reflect improvements or 
other developments in the measurement of mercury emissions from coal-
fired electric steam generating units.
    ``(d) Monitoring System.--(1) The owner or operator of an affected 
unit shall install and operate a continuous emissions monitoring system 
(CEMS) to measure the quantity of mercury that is emitted from each 
affected unit.
    ``(2) For purposes of complying with paragraph (1), the owner or 
operator of an affected unit may use--
            ``(A) any CEMS that meets the requirements in Performance 
        Specification 12A (PS-12A), `Specifications and Test Procedures 
        for Total Vapor-Phase Mercury Continuous Monitoring Systems in 
        Stationary Sources';
            ``(B) a mercury concentration CEMS that meets the 
        requirements of 40 C.F.R. Part 75; or
            ``(C) a sorbent trap monitoring system that meets the 
        requirements of 40 C.F.R. 75.15 and 40 C.F.R. Part 75, Appendix 
        K, `Quality Assurance and Operating Procedures for Sorbent Trap 
        Monitoring Systems';
            ``(3) The Administrator may revise or supplement the list 
        of permitted monitoring systems set forth in paragraph (2) to 
        reflect improvements or other developments in mercury emissions 
        reduction technologies and mercury emissions monitoring 
        systems.
    ``(e) Excess Emissions.--(1) Except as provided in subsection (f), 
the owner or operator of an affected unit that emits mercury in excess 
of the applicable annual average emission limitation under subsection 
(a) shall pay an excess emissions penalty determined under paragraph 
(2).
    ``(2) The excess emissions penalty for mercury shall be an amount 
equal to $50,000 for each pound of mercury emitted in excess of the 
applicable annual average emission limitation under subsection (a). 
Such penalty shall be prorated for each fraction of a pound.
    ``(f) Best Practices.--(1) Effective, January 1, 2015, if the owner 
or operator of any affected unit fails to achieve the annual average 
emission limitation under subsection (a)(2), such owner or operator may 
notify the Administrator of such failure prior to March 1, 2015, and 
request an alternate emissions limitation for mercury with respect to 
such affected unit. Such owner or operator shall submit to the 
Administrator mercury emissions data measured by a CEMS that complies 
with subsection (d) for evaluation. If the Administrator determines 
that such owner or operator has properly installed and operated such 
CEMS and control technology designed to achieve such annual average 
emission limitation and is unable to meet such limitation, the 
Administrator may, not later than April 1, 2016, establish an alternate 
emissions limitation for mercury with respect to such affected unit 
based on the optimal performance of properly installed and operated 
control technology.
    ``(2) With respect to any affected unit, for any year for which an 
alternate emissions limitation for mercury is in place for such 
affected unit, the Administrator may review such alternate emissions 
limitation and impose a more stringent emissions limitation for mercury 
for the subsequent year based on new data regarding the demonstrated 
control capabilities of the type of control technology installed and 
operated at such affected unit.
    ``(3)(A) Except as provided in subparagraph (B), an owner or 
operator of an affected unit failing to achieve the annual average 
emission limitation under subsection (a)(2) that notifies the 
Administrator of such failure and requests and alternate emissions 
limitation for mercury pursuant to paragraph (1) shall be considered in 
compliance with this section (and not subject to any excess emissions 
penalty) for the period beginning on January 1, 2015, and ending on the 
date such an alternate emissions limitation is implemented.
    ``(B) An owner or operator described in subparagraph (A) shall pay 
an excess emissions penalty, as determined under subsection (e)(2), for 
the period described in such subparagraph, if such owner or operator 
operates or maintains the affected unit, including any associated air 
pollution control equipment, in a manner that is inconsistent with good 
air pollution control practices for the minimization of mercury 
emissions, as determined by the Administrator. In determining whether 
the owner or operator of the affected unit operates and maintains the 
affected unit in a manner that is consistent with good air pollution 
control practices for the minimization of mercury emissions, the 
Administrator may review the emissions monitoring data and operating 
and maintenance procedures of the affected unit and may inspect the 
affected unit.
    ``(4)(A) With respect to any affected unit for which an alternate 
emissions limitation for mercury is in place under this subsection, the 
owner or operator of such affected unit that emits mercury in excess of 
such alternate emissions limitation shall pay an excess emissions 
penalty determined under subparagraph (B).
    ``(B) The excess emissions penalty for mercury for an owner or 
operator of an affected unit described in subparagraph (A) shall be an 
amount equal to $50,000 for each pound of mercury emitted in excess of 
the alternate emissions limitation for mercury in place for such 
affected unit. Such penalty shall be prorated for each fraction of a 
pound.
    ``(g) Sole Limitation on Mercury.--This title shall apply the sole 
emission standard or limitation under this Act with regard to the 
emission of mercury from electric utility steam generating units and 
shall supersede any other such requirement under section 112 or any 
other provision of this Act.
    ``(h) Relationship to Other Law.--Except as otherwise specifically 
provided in this title, nothing in this title precludes a State or 
political subdivision of a State from adopting or enforcing any 
additional requirements for the control or abatement of mercury 
emissions, except that no State or political subdivision thereof shall 
adopt or attempt to enforce any standard relating to the reduction or 
control of mercury emissions from electric utility steam generating 
units that is less stringent than the standards provided in this 
title.''.
Mercury Reduction and Energy Security Act of 2010 - Amends the Clean Air Act to require affected units (coal-fired electric steam generating units that have nameplate capacities greater than 25 megawatts and generate electricity for sale) to reduce mercury emissions by the less stringent limitation of: (1) 80% capture of inlet mercury or an emission rate of 1.6 pounds of mercury per trillion British thermal units (Btu) of input coal for the period beginning on January 1, 2012, and ending December 31, 2014; and (2) 90% capture of inlet mercury or an emission rate of 0.8 pounds of mercury per trillion Btu of input coal by 2015 and each year thereafter.

Specifies methods that owners or operators of affected units are required to use as reference methods in calibrating the instruments used to measure the mercury concentrations in emissions from affected units.

Establishes excess emissions penalties for mercury. Sets forth compliance provisions.

Authorizes: (1) owners or operators of affected units that fail to achieve such limitations to request an alternate emission limitation; (2) the Administrator of the Environmental Protection Agency (EPA) to establish alternate limitations if the Administrator determines that the owner or operator has properly installed and operated continuous emissions monitoring system and control technology designed to achieve such limitations and is unable to achieve such limitations; and (3) the Administrator, after granting alternate limitations, to impose more stringent emissions limitations in subsequent years. Makes such alternate limitations effective January 1, 2015.

Provides that this Act supersedes any other requirement in such Act with regard to the emission of mercury from electric utility steam generating units.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Cabin Fee Act of 
2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Cabin user fees.
Sec. 4. Payment of cabin transfer fees.
Sec. 5. Right of appeal and judicial review.
Sec. 6. Effect.
Sec. 7. Regulations.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Authorization; authorize.--The terms ``authorization'' 
        and ``authorize'' mean the issuance of a special use permit for 
        the use and occupancy of National Forest System land by a cabin 
        owner under the Recreation Residence Program.
            (2) Cabin.--The term ``cabin'' means a privately built and 
        owned recreation residence and related improvements on National 
        Forest System land that--
                    (A) is authorized for private use and occupancy; 
                and
                    (B) may be sold or transferred between private 
                parties.
            (3) Cabin owner.--The term ``cabin owner'' means--
                    (A) a person authorized by the Secretary to use and 
                to occupy a cabin; and
                    (B) a trust, heir, or assign of a person described 
                in subparagraph (A).
            (4) Cabin transfer fee.--The term ``cabin transfer fee'' 
        means a fee that is paid to the United States on the transfer 
        of a cabin between private parties for money or other 
        consideration that results in the issuance of a new permit.
            (5) Cabin user fee.--The term ``cabin user fee'' means an 
        annual fee paid to the United States by a cabin owner in 
        accordance with an authorization for the use and occupancy of a 
        cabin.
            (6) Current appraisal cycle.--The term ``current appraisal 
        cycle'' means the completion of Forest Service review and 
        acceptance of--
                    (A) initial typical lot appraisals; and
                    (B) second appraisals, if ordered by cabin owners 
                and approved by the Forest Service.
            (7) Current cabin user fee.--The term ``current cabin user 
        fee'' means the most recent cabin user fee, as adjusted under 
        section 3(c).
            (8) Lot.--The term ``lot'' means a parcel of National 
        Forest System land on which a person is authorized to build, 
        use, occupy, and maintain a cabin.
            (9) National forest system.--The term ``National Forest 
        System'' has the meaning given that term in section 11 of the 
        Forest and Rangeland Renewable Resources Planning Act of 1974 
        (16 U.S.C. 1609).
            (10) Recreation residence program.--The term ``Recreation 
        Residence Program'' means the Recreation Residence Program 
        established under the last paragraph under the heading ``FOREST 
        SERVICE'' in the Act of March 4, 1915 (16 U.S.C. 497).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
            (12) Typical lot.--The term ``typical lot'' means a cabin 
        lot, or group of cabin lots, in a tract that is selected for 
        use in an appraisal as being representative of, and that has 
        similar value characteristics as, other lots or groups of lots 
        within the tract.

SEC. 3. CABIN USER FEES.

    (a) Payment of Cabin User Fees.--Cabin owners shall pay an annual 
cabin user fee established by the Secretary in accordance with this 
section.
    (b) Initial Cabin User Fees.--
            (1) Establishment.--The Secretary shall establish initial 
        cabin user fees in accordance with this subsection.
            (2) Assignment to value tiers.--On completion of the 
        current appraisal cycle, as required by paragraph (4), the 
        Secretary shall assign each permitted lot on National Forest 
        System land to 1 of 10 tiers based on the following 
        considerations:
                    (A) Before assigning the lots to tiers, all 
                appraised lot values shall be adjusted, or normalized, 
                for price changes occurring after the appraisal, in 
                accordance with the National Association of 
                Homebuilders/Wells Fargo Housing Opportunity Index.
                    (B) Second appraisal values shall supersede initial 
                lot appraisal values for the normalization and ranking 
                process under subparagraph (A).
                    (C) The tiers shall be established, on a national 
                basis, according to relative lot value, with lots 
                having the lowest adjusted appraised value assigned to 
                tier 1 and lots having the highest adjusted appraised 
                value assigned to tier 10.
                    (D) The number of lots (by percentage) assigned to 
                each tier is contained in the table set forth in 
                paragraph (3).
                    (E) Data from incomplete appraisals may not be used 
                to establish the fee tiers under this subsection.
                    (F) Until assigned to a tier under this subsection, 
                the Secretary shall assess (and may adjust annually 
                subject to clause (ii)) an interim fee for permitted 
                cabin lots (including lots with incomplete appraisals) 
                in an amount equal to the lesser of--
                            (i) $5,000; or
                            (ii) the amount of the current cabin user 
                        fee, as determined under the Cabin User Fee 
                        Fairness Act of 2000 (16 U.S.C. 6201 et seq.), 
                        which amount the Secretary may increase 
                        annually by not more than 25 percent, except 
                        that the increased fee shall not exceed the 
                        otherwise scheduled fee determined under the 
                        Cabin User Fee Fairness Act of 2000.
            (3) Amount of initial cabin user fees.--The initial cabin 
        user fees, based on the assignments under paragraph (2), are as 
        follows:


------------------------------------------------------------------------
                          Approximate Percent of
        Fee Tier            Permits Nationally          Fee Amount
------------------------------------------------------------------------
               Tier 1                5 percent                     $500
------------------------------------------------------------------------
               Tier 2               12 percent                   $1,000
------------------------------------------------------------------------
               Tier 3               22 percent                   $1,500
------------------------------------------------------------------------
               Tier 4               22 percent                   $2,000
------------------------------------------------------------------------
               Tier 5               10 percent                   $2,500
------------------------------------------------------------------------
               Tier 6                9 percent                   $3,000
------------------------------------------------------------------------
               Tier 7                7 percent                   $3,500
------------------------------------------------------------------------
               Tier 8                5 percent                   $4,000
------------------------------------------------------------------------
               Tier 9                5 percent                   $4,500
------------------------------------------------------------------------
              Tier 10                3 percent                   $5,000
------------------------------------------------------------------------

            (4) Deadline for completion of current appraisal cycle.--
        Not later than 3 years after the date of enactment of this Act, 
        the Secretary shall complete the current appraisal cycle.
            (5) Effective date.--The initial cabin user fees required 
        by this subsection shall take effect beginning with the first 
        calendar year beginning after the completion of the current 
        appraisal cycle.
    (c) Annual Adjustments of Cabin User Fee.--Once initial cabin user 
fees have been assessed, based on the tier assignments under subsection 
(b)(2), the Secretary shall use changes in the Implicit Price Deflator 
for the Gross Domestic Product published by the Bureau of Economic 
Analysis of the Department of Commerce, applied on a 5-year rolling 
average, to assess an annual adjustment to cabin user fees.
    (d) Effect of Destruction, Substantial Damage, or Loss of Access.--
            (1) In general.--The Secretary shall reduce the cabin user 
        fee to $100 per year for a cabin if--
                    (A) the cabin is destroyed or suffers substantial 
                damage in an amount that is greater than 50 percent of 
                replacement cost of the cabin; or
                    (B) access to the cabin is significantly impaired, 
                whether by catastrophic events, natural causes, or 
                governmental actions.
            (2) Term of reduced fee.--The reduced fee under paragraph 
        (1) shall be in effect until the later of--
                    (A) the last day of the year in which the 
                destruction or impairment occurs; or
                    (B) the date on which the cabin may be lawfully 
                reoccupied and normal access has been restored.

SEC. 4. PAYMENT OF CABIN TRANSFER FEES.

    As a condition of the issuance by the Secretary of a new 
authorization for the use and occupancy of the cabin, the cabin owner 
transferring the cabin shall pay to the Secretary a cabin transfer fee 
in the amount of $1,200.

SEC. 5. RIGHT OF APPEAL AND JUDICIAL REVIEW.

    (a) Right of Appeal.--
            (1) In general.--Notwithstanding any action of a cabin 
        owner to exercise rights in accordance with section 6, the 
        Secretary shall by regulation grant to the cabin owner the 
        right to an administrative appeal of the determination of a new 
        cabin user fee, fee tier, or whether or not to reduce a cabin 
        user fee under section 3(d).
            (2) Applicable law.--An appeal under paragraph (1) shall be 
        pursuant to the appeal process provided under subpart C of part 
        251 of title 36, Code of Federal Regulations (or a successor 
        regulation).
    (b) Judicial Review.--
            (1) In general.--A cabin owner that contests a final 
        decision of the Secretary under this Act may bring a civil 
        action in United States district court.
            (2) Venue.--The venue for an action brought before the 
        United States district court under this subsection shall be in 
        the Federal judicial district in which the cabin is located.
            (3) Effect on mediation.--Nothing in this Act precludes a 
        person from seeking mediation for an action under this Act.

SEC. 6. EFFECT.

    (a) In General.--Nothing in this Act limits or restricts any right, 
title, or interest of the United States in or to any land or resource.
    (b) Special Rule for Alaska.--In determining a cabin user fee in 
the State of Alaska, the Secretary shall not establish or impose a 
cabin user fee or a condition affecting a cabin user fee that is 
inconsistent with 1303(d) of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3193(d)).

SEC. 7. REGULATIONS.

    Not later than December 31, 2013, the Secretary shall issue 
regulations to carry out this Act.

            Passed the House of Representatives September 10, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
Cabin Fee Act of 2012 - Directs the Secretary of Agriculture (USDA) to set an annual fee for, and requires the payment of such fee to the United States by, an authorized owner of a privately built and owned recreational cabin located on National Forest System land.

Reduces such fee to $100 annually if access to a cabin is significantly impaired, either by natural causes or governmental actions.

 Requires payment of a transfer fee to the United States upon the transfer of a cabin between private parties for consideration.

Requires the Secretary to grant a cabin owner the right to administrative appeal of a cabin fee decision, which may be reviewed by bringing a civil action in U.S. district court.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Financial Manager Reform 
Act of 2016''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Local government units are charged with providing 
        critical law enforcement, educational training, public safety, 
        and health services for the communities they serve.
            (2) The mismanagement of Federal grant money, including 
        conflicts of interest and abuse of discretion, undermines the 
        ability of local government units to provide these essential 
        services.
            (3) The U.S. Government Accountability Office found that 
        Federal grant management operations for local government units 
        were adversely impacted in cases where unaccountable emergency 
        financial managers were appointed.
            (4) The Federal Government has a strong interest in 
        preventing the mismanagement of Federal funds intended to 
        support local law enforcement efforts to protect health and 
        safety by ensuring that local government units are accountable 
        for such funds.
            (5) The appointment of an emergency financial manager may 
        adversely impact voting rights when such appointment 
        disproportionately affects minority communities whose local 
        elected officials are displaced by such financial manager.
            (6) The appointment of an emergency financial manager can 
        adversely impact public health and safety priorities, including 
        the safety of public drinking water systems, in instances where 
        they are unaccountable to local elected leaders.
            (7) Under article I, section 10, clause 1 of the U.S. 
        Constitution, a State is prohibited from impairing a 
        contractual obligation. In addition, some State constitutions 
        explicitly prohibit impairment of a collective bargaining 
        agreement and accrued financial benefits under a pension plan 
        or a retirement system. Such impairment is unconstitutional and 
        a violation of law unless consented to by all parties.

SEC. 3. SAFEGUARDS REGARDING STATE APPOINTMENT OF AN EMERGENCY 
              FINANCIAL MANAGER.

    (a) Reduction of Byrne-JAG Funds.--The Attorney General may 
withhold 5 percent of the funds that would otherwise be allocated to a 
State under the program under subpart 1 of part E of title I of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3750 et 
seq.) for the fiscal year following any fiscal year in which an 
emergency financial manager is appointed by that State or continues in 
a previous appointment and--
            (1) the chief legal officer or other appropriate State 
        official does not, by the date of the appointment and every 18 
        months thereafter while the appointment remains in effect, 
        submit to the Attorney General a certification that--
                    (A) such appointment does not have the purpose nor 
                will it have the effect of denying, abridging, or 
                diluting the right to vote on account of race or color; 
                and
                    (B) the community for which the emergency financial 
                manager is appointed has been given an opportunity, by 
                public notice issued simultaneously with the submission 
                to the Attorney General, to submit comments in full for 
                a period of at least 30 days with regard to 
                subparagraph (A);
            (2) the Attorney General interposes an objection under 
        paragraph (1)(A) by not later than 60 days after submission of 
        comments under paragraph (1)(B) and the emergency financial 
        manager thereafter continues in the appointment;
            (3) such emergency financial manager is authorized to make 
        decisions affecting public health or safety of the residents or 
        employees of a local government unit, including the 
        disbursement of any emergency funds provided by any Federal or 
        State entity for the purpose of addressing lead or other 
        contamination of drinking water in a public water system, 
        without receiving prior approval from the governor of the State 
        and appropriate local elected officials;
            (4) such emergency financial manager does not have adequate 
        oversight in effect to ensure against conflicts of interest, 
        mismanagement, and abuse of discretion by such emergency 
        financial manager;
            (5) such emergency financial manager is authorized to 
        reject, modify, or terminate one or more terms and conditions 
        of an existing collective bargaining agreement without mutual 
        consent as to such rejection, modification, or termination by 
        all parties to the agreement;
            (6) such emergency financial manager is authorized to 
        reject, modify, or terminate one or more terms of an existing 
        contract without mutual consent by all parties to the contract 
        or without submitting such rejection, modification, or 
        termination for approval by a bankruptcy court under title 11, 
        United States Code; or
            (7) such emergency financial manager is appointed and 
        members of the community under the jurisdiction of such 
        appointment were not provided prior thereto--
                    (A) an opportunity, by public notice issued 
                simultaneously with the submission to the Attorney 
                General required pursuant to paragraph (1) for a period 
                of at least 30 days, to make public comment as to any 
                conflicts of interest the proposed appointee may have, 
                whether the proposed appointee has the requisite 
                experience and financial acumen, and whether the 
                proposed appointee is empowered to propose sources of 
                financial assistance, such as loans, grants, and 
                revenue sharing; and
                    (B) with the name of a State official to whom may 
                be conveyed complaints about the appointee, including 
                complaints about any conflicts of interest, 
                mismanagement, or dereliction of duty.
    (b) Reallocation.--Amounts not allocated under the program referred 
to in subsection (a) to a State shall, to the extent practicable, be 
reallocated under that program to the local government unit for which 
the emergency financial manager is appointed.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) The term ``emergency financial manager'' means any 
        person appointed by a State, including a financial control 
        board or commission, emergency manager, receiver, coordinator, 
        or overseer that oversees or manages a local government unit.
            (2) The term ``local government unit'' includes cities, 
        towns, municipalities, school board districts, law enforcement 
        departments or any other body, department, or office which 
        exercises authority over matters of local concern at the 
        direction of local elected officials or governing bodies or the 
        appointees of local elected officials or governing bodies.
            (3) The term ``adequate oversight'' means, in the case of 
        an emergency financial manager--
                    (A) a monthly, publically available report, 
                reviewed and approved by the governor and appropriate 
                local elected officials, accounting for all financial 
                activities of the emergency financial manager 
                (including possible conflicts of interest, 
                mismanagement, and abuses of discretion) related to the 
                duties of the emergency financial manager; and
                    (B) an independent State-approved publically 
                available audit of the emergency financial manager's 
                duty-related activities on an annual basis or, if the 
                term of an emergency financial manager is less than one 
                year, at least one such audit.
            (4) The term ``State'' means any one of the several States.

Emergency Financial Manager Reform Act of 2016 This bill requires a state with a state-appointed emergency financial manager to certify that the appointment: (1) does not have the purpose or effect of limiting the right to vote on account of race or color, and (2) followed a notice and comment period. If a state with a state-appointed emergency financial manager fails to submit such certification, then the Department of Justice may reduce by 5% that state's allocation of funds under the Edward Byrne Memorial Justice Assistance Grant program.