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108th Congress                                            Rept. 108-460
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 4
======================================================================


 
      FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS ACT OF 2004

                                _______
                                

 June 21, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3266]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on the Judiciary, to whom was referred the bill 
(H.R. 3266) to authorize the Secretary of Homeland Security to 
make grants to first responders, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     2
Purpose and Summary..............................................    20
Background and Need for the Legislation..........................    20
Hearings.........................................................    24
Committee Consideration..........................................    24
Votes of the Committee...........................................    24
Committee Oversight Findings.....................................    24
New Budget Authority and Tax Expenditures........................    24
Congressional Budget Office Cost Estimate........................    25
Performance Goals and Objectives.................................    29
Constitutional Authority Statement...............................    30
Section-by-Section Analysis and Discussion.......................    30
Changes in Existing Law Made by the Bill, as Reported............    36
Markup Transcript................................................    61
Additional Views.................................................   173

                             The Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Faster and Smarter 
Funding for First Responders Act of 2004''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Faster and Smarter Funding for First Responders.

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

        ``1801. Faster and smarter funding for first responders.
        ``1802. Essential capabilities for first responders.
        ``1803. Task Force on Essential Capabilities for First 
                        Responders.
        ``1804. Covered grant eligibility and criteria.
        ``1805. Use of funds and accountability requirements.
        ``1806. National standards for first responder equipment and 
                        training.
        ``1807. Definitions.
Sec. 4. Modification of Homeland Security Advisory System.
        ``Sec. 203. Homeland Security Advisory System.
Sec. 5. Coordination of industry efforts.
Sec. 6. Superseded provision.
Sec. 7. Sense of Congress regarding interoperable communications.
Sec. 8. Sense of Congress regarding Citizen Corps councils.
Sec. 9. Study regarding nationwide emergency notification system.
Sec. 10. Authorization of appropriations.
Sec. 11. Authority to enter into contracts and issue Federal loan 
guarantees.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) In order to achieve its objective of minimizing the 
        damage, and assisting in the recovery, from terrorist attacks, 
        the Department of Homeland Security must play a leading role in 
        assisting communities to reach the level of preparedness they 
        need to respond to a terrorist attack.
          (2) First responder funding is not reaching the men and women 
        of our Nation's first response teams quickly enough, and 
        sometimes not at all.
          (3) To reform the current bureaucratic process so that 
        homeland security dollars reach the first responders who need 
        it most, it is necessary to clarify and consolidate the 
        authority and procedures of the Department of Homeland Security 
        to support first responders.
          (4) Ensuring adequate resources for the new national mission 
        of homeland security requires a discrete and separate grant 
        making process for homeland security funds for first response 
        to terrorist acts, on the one hand, and for first responder 
        programs designed to meet pre-9/11 priorities, on the other.
          (5) Homeland security grants to first responders must be 
        based on the best intelligence concerning the capabilities and 
        intentions of our terrorist enemies, and that intelligence must 
        be used to target resources to the Nation's greatest risks, 
        vulnerabilities, and consequences.
          (6) The Nation's first response capabilities will be improved 
        by sharing resources, training, planning, personnel, and 
        equipment among neighboring jurisdictions through mutual aid 
        agreements and regional cooperation. Such regional cooperation 
        should be supported, where appropriate, through direct grants 
        from the Department of Homeland Security.
          (7) An essential prerequisite to achieving the Nation's 
        homeland security objectives for first responders is the 
        establishment of well-defined national goals for terrorism 
        preparedness. These goals should delineate the essential 
        capabilities that every jurisdiction in the United States 
        should possess or to which it should have access.
          (8) A national determination of essential capabilities is 
        needed to identify levels of State and local government 
        terrorism preparedness, to determine the nature and extent of 
        State and local first responder needs, to identify the human 
        and financial resources required to fulfill them, and to direct 
        funding to meet those needs and to measure preparedness levels 
        on a national scale.
          (9) To facilitate progress in attaining essential 
        capabilities for State and local first responders, the 
        Department of Homeland Security should seek to allocate 
        homeland security funding for first responders to meet 
        nationwide needs.
          (10) Private sector resources and citizen volunteers can 
        perform critical functions in assisting in preventing and 
        responding to terrorist attacks, and should be integrated into 
        State and local planning efforts to ensure that their 
        capabilities and roles are understood, so as to provide 
        enhanced State and local operational capability and surge 
        capacity.
          (11) Public-private partnerships, such as the partnerships 
        between the Business Executives for National Security and the 
        States of New Jersey and Georgia, can be useful to identify and 
        coordinate private sector support for State and local first 
        responders. Such models should be expanded to cover all States 
        and territories.
          (12) An important component of national standards is 
        measurability, so that it is possible to determine how prepared 
        a State or local government is now, and what additional steps 
        it needs to take, in order to respond to acts of terrorism.
          (13) The Department of Homeland Security should establish, 
        publish, and regularly update national voluntary consensus 
        standards for both equipment and training, in cooperation with 
        both public and private sector standard setting organizations, 
        to assist State and local governments in obtaining the 
        equipment and training to attain the essential capabilities for 
        first response to acts of terrorism, and to ensure that first 
        responder funds are spent wisely.

SEC. 3. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  (a) In General.--The Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 361 et seq.) is amended--
          (1) in section 1(b) in the table of contents by adding at the 
        end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``1801. Faster and smarter funding for first responders.
``1802. Essential capabilities for first responders.
``1803. Task Force on Essential Capabilities for First Responders.
``1804. Covered grant eligibility and criteria.
``1805. Use of funds and accountability requirements.
``1806. National standards for first responder equipment and training.
``1807. Definitions.''; and
          (2) by adding at the end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  ``(a) Covered Grants.--This title applies to any grant provided by 
the Department to States, regions, or directly eligible tribes to 
improve the ability of first responders to prevent, prepare for, 
respond to, or mitigate threatened or actual terrorist attacks, 
especially those involving weapons of mass destruction, and including 
any grant under the following:
          ``(1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or any 
        successor to such grant program.
          ``(2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor to such 
        grant program.
  ``(b) Excluded Programs.--This title does not apply to or otherwise 
affect the following Federal grant programs or any grant under such a 
program:
          ``(1) Nondepartment programs.--Any Federal grant program that 
        is not administered by the Department.
          ``(2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire Prevention 
        and Control Act of 1974 (15 U.S.C. 2229, 2229a).
          ``(3) Emergency management planning and assistance account 
        grants.--The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5195 et seq.); the Departments of 
        Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 Stat. 1047 
        et seq.); and the Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

``SEC. 1802. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  ``(a) Establishment of Essential Capabilities.--
          ``(1) In general.--The Secretary shall establish clearly 
        defined essential capabilities for State and local government 
        preparedness for terrorism, in consultation with--
                  ``(A) the Task Force on Essential Capabilities for 
                First Responders established under section 1803;
                  ``(B) the Under Secretaries for Emergency 
                Preparedness and Response, Border and Transportation 
                Security, Information Analysis and Infrastructure 
                Protection, and Science and Technology, and the 
                Director of the Office for Domestic Preparedness;
                  ``(C) other appropriate Federal agencies;
                  ``(D) State and local first responder agencies and 
                officials; and
                  ``(E) groups responsible for setting standards 
                relevant to the first responder community.
          ``(2) Deadlines.--The Secretary shall--
                  ``(A) establish essential capabilities under 
                paragraph (1) within 30 days after receipt of the 
                initial submission of a final report under section 
                1803(c)(2); and
                  ``(B) regularly update such essential capabilities as 
                necessary, but not less than every 3 years.
          ``(3) Provision of essential capabilities.--The Secretary 
        shall ensure that essential capabilities established under 
        paragraph (1) are provided promptly to the States and to the 
        Congress. The States shall make the essential capabilities 
        available as necessary and appropriate to local governments 
        within their jurisdictions.
  ``(b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the following 
objectives:
          ``(1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types of 
        communities in the Nation should possess, or to which they 
        should have access, in order to meet the Department's goals for 
        terrorism preparedness based upon--
                  ``(A) the most current risk assessment available by 
                the Directorate for Information Analysis and 
                Infrastructure Protection of the threats of terrorism 
                against the United States; and
                  ``(B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the Secretary 
                has determined to be applicable to each different type 
                of community.
          ``(2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow State and 
        local government officials to set priorities based on 
        particular needs, while reaching nationally determined 
        terrorism preparedness levels within a specified time period.
          ``(3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
  ``(c) Threats to Be Considered.--
          ``(1) In general.--In establishing essential capabilities 
        under subsection (a)(1), the Secretary specifically shall 
        consider the variables of threat, vulnerability, and 
        consequences with respect to the Nation's population (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such consideration shall be based upon the most 
        current risk assessment available by the Directorate for 
        Information Analysis and Infrastructure Protection of the 
        threats of terrorism against the United States.
          ``(2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        Nation, urban and rural:
                  ``(A) Agriculture.
                  ``(B) Banking and finance.
                  ``(C) Chemical industries.
                  ``(D) The defense industrial base.
                  ``(E) Emergency services.
                  ``(F) Energy.
                  ``(G) Food.
                  ``(H) Government.
                  ``(I) Postal and shipping.
                  ``(J) Public health.
                  ``(K) Information and telecommunications networks.
                  ``(L) Transportation, ports, and containers.
                  ``(M) Water.
                  ``(N) Courts and justice facilities.
        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 importance of such sectors.
          ``(3) Consideration of additional threats.--In establishing 
        essential capabilities under subsection (a)(1), the Secretary 
        shall take into account any other specific threat to a 
        population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the 
        Secretary has determined to exist.

``SEC. 1803. TASK FORCE ON ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  ``(a) Establishment.--To assist the Secretary in establishing 
essential capabilities under section 1802(a)(1), the Secretary shall 
establish an advisory body to be known as the Task Force on Essential 
Capabilities for First Responders not later than 60 days after the date 
of the enactment of this section.
  ``(b) Draft Report.--
          ``(1) In general.--The Task Force shall submit to the 
        Secretary, not later than one year after its establishment by 
        the Secretary under subsection (a) and every 3 years 
        thereafter, a draft report on its recommendations for the 
        essential capabilities all State and local government first 
        responders should possess, or to which they should have access, 
        to enhance terrorism preparedness, including--
                  ``(A) to prevent a terrorist attack;
                  ``(B) to protect persons and critical infrastructure 
                against attack; and
                  ``(C) to enhance terrorism response and mitigation 
                capabilities if such an attack occurs.
          ``(2) Threats to be considered in determining essential 
        capabilities.--
                  ``(A) In general.--In reporting to the Secretary on 
                its recommendations for essential capabilities, the 
                Task Force specifically shall consider the critical 
                infrastructure sectors described in section 1802(c)(2), 
                and the threats to populations in all areas of the 
                Nation, urban and rural, including the following:
                          ``(i) Biological threats.
                          ``(ii) Nuclear threats.
                          ``(iii) Radiological threats.
                          ``(iv) Incendiary threats.
                          ``(v) Chemical threats.
                          ``(vi) Explosives.
                          ``(vii) Suicide bombers.
                          ``(viii) Cyber threats.
                          ``(ix) Any other threats based on proximity 
                        to specific past acts of terrorism or the known 
                        activity of any terrorist group.
                  ``(B) No priority.--The order in which the threats 
                are listed in subparagraph (A) shall not be construed 
                as an order of priority for consideration of the 
                importance of such threats.
          ``(3) Risk-based.--The draft report shall be based upon the 
        most current risk assessment available by the Directorate for 
        Information Analysis and Infrastructure Protection of the 
        threats of terrorism against the United States provided to the 
        Task Force pursuant to subsection (d).
          ``(4) Contents.--The draft report shall--
                  ``(A) include a priority ranking of essential 
                capabilities, in order to provide guidance to the 
                Secretary and to the Congress on determining the 
                appropriate allocation of, and funding levels for, 
                first responder needs;
                  ``(B) set forth a methodology by which any State or 
                local government will be able to determine the extent 
                to which it possesses or has access to the essential 
                capabilities that States and local governments having 
                similar risks should obtain;
                  ``(C) describe the availability of national voluntary 
                consensus standards, and whether there is a need for 
                new national voluntary consensus standards, with 
                respect to first responder training and equipment;
                  ``(D) include such additional matters as the 
                Secretary may specify in order to further the terrorism 
                preparedness capabilities of first responders; and
                  ``(E) include such revisions to the contents of past 
                reports as are necessary to take into account changes 
                in the most current risk assessment available by the 
                Directorate for Information Analysis and Infrastructure 
                Protection or other relevant information as determined 
                by the Secretary.
  ``(c) Review and Revision of Draft Report.--
          ``(1) Review and comments.--Within 30 days after the date of 
        the submission of the draft report by the Task Force under 
        subsection (b), the Secretary shall review and provide comments 
        to the Task Force on the contents of the draft report.
          ``(2) Revision and submission of final report.--Within 30 
        days after receiving the Secretary's comments, the Task Force 
        shall--
                  ``(A) revise its draft report based on the comments 
                provided by the Secretary, and any other comments it 
                has solicited and received, if the Task Force 
                determines that such revisions are appropriate; and
                  ``(B) submit the final report on essential 
                capabilities to the Secretary and to the Congress.
  ``(d) Task Force Access to Information.--
          ``(1) Security clearances.--For purposes of carrying out its 
        responsibilities under this section, the Task Force shall be 
        provided as a matter of priority appropriate security 
        clearances, including interim security clearances.
          ``(2) Access to finished intelligence.--For purposes of 
        carrying out its responsibilities under this section, the Task 
        Force shall be provided access to all finished intelligence and 
        analytic products it may request from the Directorate for 
        Information Analysis and Infrastructure Protection or other 
        sources within the Department concerning the nature and 
        likelihood of terrorist attacks on the territory of the United 
        States.
          ``(3) Access to assessment tools.--For purposes of carrying 
        out its responsibilities under this section, the Task Force 
        shall be provided access to all tools or methodologies 
        currently or formerly used by the Department and its 
        predecessor organizations to assess the preparedness 
        capabilities of State and local governments.
          ``(4) Valid clearances.--Nothing in this section shall be 
        considered to authorize a member of the Task Force to have 
        access to classified information unless that member possesses a 
        valid clearance to receive such information.
  ``(e) Membership.--
          ``(1) In general.--The Task Force shall consist of 25 members 
        appointed by the Secretary, and shall--
                  ``(A) represent a cross section of first responder 
                disciplines; and
                  ``(B) include both State and local representatives 
                within each discipline.
          ``(2) Term of members.--Each appointed member of the Task 
        Force shall serve for a term not to exceed 18 months. No 
        individual may be appointed as a member of the Task Force for 
        more than 2 terms.
          ``(3) Selection of members.--The Secretary shall include in 
        the membership of the Task Force--
                  ``(A) members selected from the emergency response 
                field, including firefighters and law enforcement, 
                hazardous materials response, emergency medical 
                services, and emergency management personnel (including 
                public works personnel routinely engaged in emergency 
                response);
                  ``(B) health scientists, emergency and inpatient 
                medical providers, and public health professionals, 
                including experts in emergency health care response to 
                chemical, biological, radiological, and nuclear 
                terrorism, and experts in providing mental health care 
                during emergency response operations;
                  ``(C) experts from Federal, State, and local 
                governments, and the private sector, representing 
                standards-setting organizations, including 
                representation from the voluntary consensus codes and 
                standards development community, particularly those 
                with expertise in firefighting, law enforcement, and 
                emergency medical services delivery; and
                  ``(D) State and local officials with expertise in 
                terrorism preparedness, subject to the condition that 
                if any such officials are elected officials, an equal 
                number shall be selected from each of the two major 
                political parties.
          ``(4) Ex officio members.--The Secretary shall designate one 
        or more officers of the Department to serve as ex officio 
        members of the Task Force, one of whom shall be the designated 
        officer of the Federal Government for purposes of subsection 
        (e) of section 10 of the Federal Advisory Committee Act.
          ``(5) Diversity in composition of task force.--In appointing 
        members to the Task Force, the Secretary shall ensure, to the 
        extent practicable, that its membership--
                  ``(A) is geographically diverse;
                  ``(B) includes representatives from both rural and 
                urban jurisdictions;
                  ``(C) includes representatives from both management 
                and labor;
                  ``(D) includes representatives from both uniformed 
                and nonuniformed professions;
                  ``(E) includes representatives from both voluntary 
                and professional services;
                  ``(F) includes representatives from both government 
                and nongovernment emergency medical services; and
                  ``(G) includes sufficient personnel with security 
                clearances necessary to review classified materials 
                that may be needed to conduct the business of the Task 
                Force.
          ``(6) Chair.--At the first meeting of the Task Force, the 
        membership of the Task Force appointed under paragraph (3) 
        shall elect a chair of the Task Force.
  ``(f) Meetings.--The Task Force shall meet as often as necessary to 
complete reports in accordance with this section.
  ``(g) Pay.--
          ``(1) In general.--Members of the Task Force shall serve 
        without pay by reason of their work on the Task Force.
          ``(2) Federal officers and employees.--Members of the Task 
        Force who are officers or employees of the United States shall 
        receive no additional pay by reason of their service as a 
        member of the Task Force.
  ``(h) Travel Expenses.--Members of the Task Force shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Task Force.
  ``(i) Services, Funds, and Staff.--The Secretary shall provide to the 
Task Force, on a non-reimbursable basis, such administrative services, 
funds, staff, facilities, and other support services as the Secretary 
determines necessary, in consultation with the chair of the Task Force, 
for the Task Force to perform its duties efficiently and in accordance 
with this section.
  ``(j) Details.--Upon the request of the Task Force, the Secretary may 
detail, without reimbursement, any personnel of the Department to 
assist the Task Force in carrying out its duties. Any such detail of an 
employee shall be without interruption or loss of civil service status 
or privilege.
  ``(k) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.), including subsections (a), (b), 
and (d) of section 10 of such Act, and section 552b(c) of title 5, 
United States Code, shall apply to the Task Force.

``SEC. 1804. COVERED GRANT ELIGIBILITY AND CRITERIA.

  ``(a) Grant Eligibility.--Any State, region, or directly eligible 
tribe shall be eligible to apply for a covered grant.
  ``(b) Awarding Grants.--
          ``(1) Criteria.--In awarding covered grants, the Secretary 
        shall assist States and local governments in achieving the 
        essential capabilities for first responders established by the 
        Secretary under section 1802.
          ``(2) Threat assessments.--In assessing threats for purposes 
        of awarding covered grants, the credibility of the threat shall 
        be weighted more than population concentration or critical 
        infrastructure or any other consideration.
  ``(c) State Homeland Security Plans.--
          ``(1) Submission of plans.--The Secretary shall require that 
        any State applying to the Secretary for a covered grant must 
        submit to the Secretary a 3-year State homeland security plan 
        that--
                  ``(A) demonstrates the extent to which the State has 
                achieved the essential capabilities that apply to the 
                State, and describes the extent to which the State used 
                the methodology developed pursuant to section 
                1803(b)(4)(B) to evaluate the level of its essential 
                capabilities;
                  ``(B) demonstrates the additional needs of the State 
                necessary to achieve the essential capabilities that 
                apply to the State;
                  ``(C) includes a prioritization of such additional 
                needs based on threat, vulnerability, and consequence 
                assessment factors applicable to the State;
                  ``(D) describes how the State intends--
                          ``(i) to address such additional needs at the 
                        city, county, regional, State, and interstate 
                        level, and with respect to any Indian tribes 
                        within its boundaries;
                          ``(ii) to use all Federal, State, and local 
                        resources available for the purpose of 
                        addressing such additional needs; and
                          ``(iii) to give particular emphasis to 
                        regional planning and cooperation, both within 
                        its jurisdictional borders and with neighboring 
                        States; and
                  ``(E) is developed in consultation with and subject 
                to appropriate comment by local governments within the 
                State.
          ``(2) Approval by secretary.--The Secretary may not award any 
        covered grant to a State unless the Secretary has approved the 
        applicable State homeland security plan.
  ``(d) Consistency With State Plans.--The Secretary shall ensure that 
each covered grant is used to supplement and support, in a consistent 
and coordinated manner, the applicable State homeland security plan or 
plans.
  ``(e) Application for Grant.--
          ``(1) In general.--Any State, region, or directly eligible 
        tribe may apply for a covered grant by submitting to the 
        Secretary an application at such time, in such manner, and 
        containing such information as is required under this 
        subsection, or as the Secretary may reasonably require.
          ``(2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted to the 
        Secretary no later than February 15 of the fiscal year for 
        which they are submitted. The Secretary shall award covered 
        grants pursuant to all approved applications for such fiscal 
        year as soon as practicable, but not later than July 31 of such 
        year.
          ``(3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall be 
        available for obligation through the end of the subsequent 
        fiscal year.
          ``(4) Minimum contents of application.--The Secretary shall 
        require that each applicant include in its application, at a 
        minimum--
                  ``(A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the applicant 
                needs the covered grant to meet the essential 
                capabilities for terrorism preparedness within the 
                boundaries of the State, region, or directly eligible 
                tribe to which the application pertains;
                  ``(B) a description of how, by reference to the 
                applicable State homeland security plan or plans under 
                subsection (c), the allocation of grant funding 
                proposed in the application, including, where 
                applicable, the amount not passed through under section 
                1805(e)(1), would assist in fulfilling the essential 
                capabilities specified in such plan or plans;
                  ``(C) a statement of whether a mutual aid agreement 
                applies to the use of all or any portion of the covered 
                grant funds;
                  ``(D) if the applicant is a region--
                          ``(i) a precise geographical description of 
                        the region and a specification of all 
                        participating and nonparticipating local 
                        governments within the geographical area 
                        comprising that region;
                          ``(ii) a specification of what governmental 
                        entity within the region will administer the 
                        expenditure of funds under the covered grant; 
                        and
                          ``(iii) a designation of a specific 
                        individual to serve as regional liaison;
                  ``(E) if the applicant is a directly eligible tribe, 
                a designation of a specific individual to serve as 
                tribal liaison;
                  ``(F) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds; 
                and
                  ``(G) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 1805(e)(2).
          ``(5) Regional applications.--
                  ``(A) Submission to state or states.--To ensure the 
                consistency required under subsection (d), an applicant 
                that is a region must simultaneously submit its 
                application to the Department and to each State of 
                which any part is included in the region.
                  ``(B) Opportunity for state comment.--Before awarding 
                any covered grant to a region, the Secretary shall 
                provide an opportunity to each State of which any part 
                is included in a region, during the 30-day period 
                beginning on the date on which the region submits an 
                application for a covered grant, to comment to the 
                Secretary on the consistency of the region's plan with 
                the State's homeland security plan.
                  ``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                regional application with the applicable State homeland 
                security plan or plans and approve any regional 
                application. The Secretary shall notify each State of 
                which any part is included in a region of the approval 
                of a regional application for that region.
                  ``(D) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(D)(iii) shall--
                          ``(i) coordinate with Federal, State, local, 
                        regional, and private officials within the 
                        region concerning terrorism preparedness;
                          ``(ii) develop a process for receiving input 
                        from Federal, State, local, regional, and 
                        private sector officials within the region to 
                        assist in the development of the regional 
                        application and to improve the region'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 state or states.--To ensure the 
                consistency required under subsection (d), an applicant 
                that is a directly eligible tribe must simultaneously 
                submit its application to the Department and to each 
                State within the boundaries of which any part of that 
                tribe is located.
                  ``(B) Opportunity for state comment.--Before awarding 
                any covered grant to a directly eligible tribe, the 
                Secretary shall provide an opportunity to each State 
                within the boundaries of which any part of that tribe 
                is located, during the 30-day period beginning on the 
                date on which the tribe submits an application for a 
                covered grant, to comment to the Secretary on the 
                consistency of the tribe's plan with the State's 
                homeland security plan.
                  ``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                application of a directly eligible tribe with the 
                applicable State homeland security plan or plans and 
                approve any application of that tribe. The Secretary 
                shall notify each State within the boundaries of which 
                any part of that tribe is located of the approval of an 
                application of that tribe.
                  ``(D) Tribal liaison.--A tribal liaison designated 
                under paragraph (4)(E) shall--
                          ``(i) coordinate with Federal, State, local, 
                        regional, and private officials concerning 
                        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 that 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 that tribe.
                  ``(E) Limitation on number of direct grants.--The 
                Secretary may make covered grants directly to not more 
                than 20 directly eligible tribes per fiscal year.
                  ``(F) Tribes not receiving direct grants.--An Indian 
                tribe not receiving 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 that tribe is located, consistent with the 
                homeland security plan of the State as described in 
                subsection (c). If a State fails to comply with section 
                1805(e)(1), the tribe is entitled to pursue the 
                procedures set forth in section 1805(f)(3) to the 
                extent applicable.
          ``(7) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary under section 1806(a), the 
        applicant shall include in the application an explanation of 
        why such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or exceed 
        such standards.
  ``(f) First Responder Grants Board.--
          ``(1) Establishment of board.--The Secretary shall establish 
        a First Responder Grants Board, consisting of--
                  ``(A) the Secretary;
                  ``(B) the Under Secretary for Emergency Preparedness 
                and Response;
                  ``(C) the Under Secretary for Border and 
                Transportation Security;
                  ``(D) the Under Secretary for Information Analysis 
                and Infrastructure Protection;
                  ``(E) the Under Secretary for Science and Technology; 
                and
                  ``(F) the Director of the Office for Domestic 
                Preparedness.
          ``(2) Chairman.--
                  ``(A) In general.--The Secretary shall be the 
                Chairman of the Board.
                  ``(B) Exercise of authorities by deputy secretary.--
                The Deputy Secretary of Homeland Security may exercise 
                the authorities of the Chairman, if the Secretary so 
                directs.
          ``(3) Ranking of grant applications.--
                  ``(A) Prioritization of grants.--The Board shall 
                evaluate and annually prioritize all pending 
                applications for covered grants based upon the degree 
                to which they would lessen the threat to, vulnerability 
                of, and consequences for persons and critical 
                infrastructure.
                  ``(B) Achieving nationwide capability.--In evaluating 
                and prioritizing grant applications under subparagraph 
                (A), the Board shall seek to achieve and enhance 
                essential capabilities throughout the Nation.
                  ``(C) Minimum amounts.--After evaluating and 
                prioritizing grant applications under subparagraph (A), 
                the Board shall ensure that, for each fiscal year--
                          ``(i) the States, the District of Columbia, 
                        and the Commonwealth of Puerto Rico each 
                        receive 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 in accordance with the 
                        prioritization of additional needs under 
                        subsection (c)(1)(C);
                          ``(ii) the United States Virgin Islands, 
                        America Samoa, Guam, and the Northern Mariana 
                        Islands each receive no less than 0.08 percent 
                        of the funds available for covered grants for 
                        that fiscal year for purposes of implementing 
                        its homeland security plan in accordance with 
                        the prioritization of additional needs under 
                        subsection (c)(1)(C); and
                          ``(iii) directly eligible tribes under 
                        section 1807(8) collectively receive no less 
                        than 0.25 percent of the funds available for 
                        covered grants for that fiscal year for 
                        purposes of addressing 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.
          ``(4) Functions of under secretaries.--The Under Secretaries 
        referred to in paragraph (1) shall seek to ensure that the 
        relevant expertise and input of the staff of their directorates 
        are available to and considered by the Board.

``SEC. 1805. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  ``(a) In General.--A covered grant may be used for--
          ``(1) purchasing or upgrading equipment, including computer 
        software, to enhance terrorism preparedness and response;
          ``(2) exercises to strengthen terrorism preparedness and 
        response;
          ``(3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving weapons of 
        mass destruction, including training in the use of equipment 
        and computer software;
          ``(4) developing or updating response plans;
          ``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information pursuant to this Act;
          ``(6) systems architecture and engineering, program planning 
        and management, strategy formulation and strategic planning, 
        life-cycle systems design, product and technology evaluation, 
        and prototype development for terrorism preparedness and 
        response purposes;
          ``(7) additional personnel costs resulting from--
                  ``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System;
                  ``(B) travel to and participation in exercises and 
                training in the use of equipment and on prevention 
                activities; and
                  ``(C) the temporary replacement of personnel during 
                any period of travel to and participation in exercises 
                and training in the use of equipment and on prevention 
                activities;
          ``(8) the costs of equipment (including software) required to 
        receive, transmit, handle, and store classified information;
          ``(9) enhancing facilities to serve as operations centers, or 
        hardening critical infrastructure against potential attack by 
        the addition of barriers, fences, gates, and other such 
        devices;
          ``(10) the costs of commercially available equipment that 
        complies with, where applicable, national voluntary consensus 
        standards, and that facilitates interoperability, coordination, 
        and integration between emergency communications systems, 
        including--
                  ``(A) mobile vehicles that contain equipment such as 
                commercial telephone trunk lines, VHF and UHF radios, 
                patch panels, and crosspatches, among other 
                technologies and equipment; and
                  ``(B) communications system overlay software and 
                hardware that allow multiple disparate communications 
                networks to act as one network;
          ``(11) educational curricula development for first responders 
        to ensure that they are prepared for terrorist attacks;
          ``(12) training and exercises to assist public elementary and 
        secondary schools in developing and implementing programs to 
        instruct students regarding age-appropriate skills to prepare 
        for and respond to an act of terrorism; and
          ``(13) other appropriate activities as determined by the 
        Secretary.
  ``(b) Prohibited Uses.--Funds provided as a covered grant may not be 
used--
          ``(1) to supplant State or local funds for, or otherwise 
        support, traditional missions of State and local law 
        enforcement, firefighters, emergency medical services, or 
        public health agencies, unless such support serves a dual 
        purpose and the funds are primarily intended to enhance 
        terrorism preparedness;
          ``(2) to acquire land; or
          ``(3) for any State or local government cost sharing 
        contribution.
  ``(c) Assistance Requirement.--The Secretary may not request 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, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
  ``(d) Flexibility in Unspent Homeland Security 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 determines that such 
transfer is in the interests of homeland security.
  ``(e) State, Regional, and Tribal Responsibilities.--
          ``(1) Pass-through.--The Secretary shall require a recipient 
        of a covered grant that is a State to obligate or otherwise 
        make available to local governments, first responders, and 
        other local groups, to the extent required under the State 
        homeland security 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 beginning 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 covered 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 enactment of this section shall be 100 
                percent.
                  ``(C) In-kind matching.--Each recipient of a covered 
                grant may meet the matching requirement 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 distribution 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) Annual report on homeland security spending.--Each 
        recipient of a covered grant shall submit a report to the 
        Secretary not later than 60 days after the end of each fiscal 
        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 region. Each recipient of a covered 
        grant that is a directly eligible tribe must simultaneously 
        submits 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 disbursements of 
                all such funds expended in compliance with paragraph 
                (1) or pursuant to mutual aid agreements or other 
                sharing arrangements that apply within the State, 
                region, or directly eligible tribe, as applicable, 
                during the previous fiscal year.
                  ``(C) How the funds were utilized by each ultimate 
                recipient or beneficiary during the preceding fiscal 
                year.
                  ``(D) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans were achieved or enhanced as the result 
                of the expenditure of grant funds during the preceding 
                fiscal year.
                  ``(E) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans remain unmet.
          ``(5) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        report under paragraph (4) that is subject to appropriate 
        handling restrictions, if the recipient believes that 
        discussion in the report of unmet needs would reveal sensitive 
        but unclassified information.
          ``(6) Provision of reports.--The Secretary shall ensure that 
        each report under paragraph (4) is provided to the Under 
        Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
  ``(f) Incentives to Efficient Administration of Homeland Security 
Grants.--
          ``(1) Penalties for delay in passing through local share.--If 
        a recipient of a covered grant that is a State fails to pass 
        through to local governments, first responders, and other local 
        groups funds or resources required by subsection (e)(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 subsection (e)(1);
                  ``(B) terminate payment of funds under the grant to 
                the recipient, and transfer the appropriate portion of 
                those funds directly to local first responders that 
                were intended to receive funding under that grant; or
                  ``(C) impose additional restrictions or burdens 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 subsection 
                        (e)(1); or
                          ``(iii) for each day that the grant recipient 
                        fails to pass through funds or resources in 
                        accordance with subsection (e)(1), reducing 
                        grant payments to the grant recipient from the 
                        portion of grant funds that is not required to 
                        be passed through under subsection (e)(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 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 detrimental impact 
        on such entities' terrorism preparedness 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 enhancements to 
                        its terrorism preparedness as described in any 
                        applicable State homeland security plan or 
                        plans;
                          ``(ii) the State has failed to pass through 
                        funds or resources in accordance with 
                        subsection (e)(1); and
                          ``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                  ``(B) Showing required.--To receive a payment under 
                this paragraph, a local government must demonstrate 
                that--
                          ``(i) it is identified explicitly as an 
                        ultimate 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 identified 
                        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 
                        (e)(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 paragraph; and
                          ``(ii) shall not prejudice consideration of a 
                        request for payment under this paragraph that 
                        is submitted by another local government.
                  ``(D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each request for 
                payment under this paragraph by not later than 15 days 
                after the date the request is received by the 
                Department.
  ``(g) Reports to Congress.--The Secretary shall submit an annual 
report to the Congress by December 31 of each year--
          ``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State and 
        region in the preceding fiscal year;
          ``(2) containing information on the use of such grant funds 
        by grantees; and
          ``(3) describing, on a nationwide and State-by-State basis--
                  ``(A) the extent to which essential capabilities 
                identified in applicable State homeland security plan 
                or plans were created or enhanced as the result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year;
                  ``(B) the extent to which essential capabilities 
                identified in applicable State homeland security plan 
                or plans remain unmet; and
                  ``(C) an estimate of the amount of Federal, State, 
                and local expenditures required to attain across the 
                United States the essential capabilities established 
                under section 1802(a).

``SEC. 1806. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  ``(a) Equipment Standards.--
          ``(1) In general.--The Secretary, in consultation with the 
        Under Secretary for Science and Technology and the Director of 
        the Office for Domestic Preparedness, shall, not later than 6 
        months after the date of enactment of this section, support the 
        development of, promulgate, and update as necessary national 
        voluntary consensus standards for the performance, use, and 
        validation of first responder equipment for purposes of section 
        1804(e)(7). Such standards--
                  ``(A) shall be, to the maximum extent practicable, 
                consistent with any existing voluntary consensus 
                standards;
                  ``(B) shall take into account, as appropriate, new 
                types of terrorism threats that may not have been 
                contemplated when such existing standards were 
                developed; and
                  ``(C) shall be focused on maximizing 
                interoperability, interchangeability, durability, 
                flexibility, efficiency, efficacy, portability, 
                sustainability, and safety.
          ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary shall specifically consider the following 
        categories of first responder equipment:
                  ``(A) Thermal imaging equipment.
                  ``(B) Radiation detection and analysis equipment.
                  ``(C) Biological detection and analysis equipment.
                  ``(D) Chemical detection and analysis equipment.
                  ``(E) Decontamination and sterilization equipment.
                  ``(F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other protective 
                clothing.
                  ``(G) Respiratory protection equipment.
                  ``(H) Interoperable communications, including 
                wireless and wireline voice, video, and data networks.
                  ``(I) Explosive mitigation devices and explosive 
                detection and analysis equipment.
                  ``(J) Containment vessels.
                  ``(K) Contaminant-resistant vehicles.
                  ``(L) Such other equipment for which the Secretary 
                determines that national voluntary consensus standards 
                would be appropriate.
  ``(b) Training Standards.--
          ``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall support the development of, 
        promulgate, and regularly update as necessary national 
        voluntary consensus standards for first responder training 
        carried out with amounts provided under covered grant programs, 
        that will enable State and local government first responders to 
        achieve optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to providing 
        training to--
                  ``(A) enable first responders to prevent, prepare 
                for, respond to, and mitigate terrorist threats, 
                including threats from chemical, biological, nuclear, 
                and radiological weapons and explosive devices capable 
                of inflicting significant human casualties; and
                  ``(B) familiarize first responders with the proper 
                use of equipment, including software, developed 
                pursuant to the standards established under subsection 
                (a).
          ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary specifically shall include the following 
        categories of first responder activities:
                  ``(A) Regional planning.
                  ``(B) Joint exercises.
                  ``(C) Intelligence collection, analysis, and sharing.
                  ``(D) Emergency notification of affected populations.
                  ``(E) Detection of biological, nuclear, radiological, 
                and chemical weapons of mass destruction.
                  ``(F) Such other activities for which the Secretary 
                determines that national voluntary consensus training 
                standards would be appropriate.
  ``(c) Consultation With Standards Organizations.--In establishing 
national voluntary consensus standards for first responder equipment 
and training under this section, the Secretary shall consult with 
relevant public and private sector groups, including--
          ``(1) the National Institute of Standards and Technology;
          ``(2) the National Fire Protection Association;
          ``(3) the National Association of County and City Health 
        Officials;
          ``(4) the Association of State and Territorial Health 
        Officials;
          ``(5) the American National Standards Institute;
          ``(6) the National Institute of Justice;
          ``(7) the Inter-Agency Board for Equipment Standardization 
        and Interoperability;
          ``(8) the National Public Health Performance Standards 
        Program;
          ``(9) the National Institute for Occupational Safety and 
        Health;
          ``(10) ASTM International;
          ``(11) the International Safety Equipment Association (ISEA); 
        and
          ``(12) to the extent the Secretary considers appropriate, 
        other national voluntary consensus standards development 
        organizations, other interested Federal, State, and local 
        agencies, and other interested persons.

``SEC. 1807. DEFINITIONS.

  ``In this title:
          ``(1) Board.--The term `Board' means the First Responder 
        Grants Board established under section 1804(f).
          ``(2) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 1801.
          ``(3) Elevations in the threat alert level.--The term 
        `elevations in the threat alert level' means any designation 
        (including those that are less than national in scope) that 
        raises the homeland security threat level to either the highest 
        or second highest threat level under the Homeland Security 
        Advisory System referred to in section 201(d)(7).
          ``(4) Essential capabilities.--The term `essential 
        capabilities' means the levels, availability, and competence of 
        emergency personnel, planning, training, and equipment across a 
        variety of disciplines needed to effectively and efficiently 
        prevent, prepare for, and respond to acts of terrorism 
        consistent with established practices.
          ``(5) Region.--The term `region' means--
                  ``(A) any geographic area consisting of all or parts 
                of 2 or more contiguous States, counties, 
                municipalities, or other local governments that have a 
                combined population of at least 1,650,000 or have an 
                area of not less than 20,000 square miles, and that, 
                for purposes of an application for a covered grant, is 
                represented by 1 or more governments or governmental 
                agencies within such geographic area, and that is 
                established by law or by agreement of 2 or more such 
                governments or governmental agencies in a mutual aid 
                agreement; or
                  ``(B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a mutual aid 
                agreement) that is formally certified by the Secretary 
                as a region for purposes of this Act with the consent 
                of--
                          ``(i) the State or States in which they are 
                        located, including a multi-State entity 
                        established by a compact between two or more 
                        States; and
                          ``(ii) the incorporated municipalities, 
                        counties, and parishes which they encompass.
          ``(6) Task force.--The term `Task Force' means the Task Force 
        on Essential Capabilities for First Responders established 
        under section 1803.
          ``(7) First responder.--The term `first responder' shall have 
        the same meaning as the term `emergency response provider'.
          ``(8) Directly eligible tribe.--The term `directly eligible 
        tribe' means any Indian tribe or consortium of Indian tribes 
        that--
                  ``(A) meets the criteria to participate in Self-
                Governance set forth in section 402(c) of the Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 458bb(c));
                  ``(B) employs at least 10 full-time personnel in a 
                law enforcement or emergency response agency with the 
                capacity to respond to calls for law enforcement or 
                emergency services; and
                  ``(C)(i) is located on, or within 5 miles of, an 
                international border or waterway;
                  ``(ii) is located within 5 miles of a facility within 
                a critical infrastructure sector identified in section 
                1802(c)(2);
                  ``(iii) is located within or contiguous to one of the 
                50 largest metropolitan statistical areas; or
                  ``(iv) has more than 1,000 square miles of Indian 
                country, as described in section 1151 of title 18, 
                United States Code.''.
  (b) Definition of Emergency Response Providers.--Section 2(6) of the 
Homeland Security Act of 2002 (Public Law 107-296; 6 U.S.C. 101(6)) is 
amended by inserting ``fire,'' after ``law enforcement,''.
  (c) Temporary Limitation on Application.--The following provisions of 
title XVIII of the Homeland Security Act of 2002, as amended by 
subsection (a), shall not apply during the 2 year period beginning on 
the date of the enactment of this Act:
          (1) Subsections (b), (c), (e) (except paragraph (5) of such 
        subsection), and (f)(3)(B) of section 1804.
          (2) Subparagraphs (D) and (E) of section 1805(e)(4).
          (3) Section 1805(g)(3).

SEC. 4. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

  (a) In General.--Subtitle A of title II of the Homeland Security Act 
of 2002 (Public Law 107-296; 6 U.S.C. 121 et seq.) is amended by adding 
at the end the following:

``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

  ``(a) In General.--The Secretary shall revise the Homeland Security 
Advisory System referred to in section 201(d)(7) to require that any 
designation of a threat level or other warning shall be accompanied by 
a designation of the geographic regions or economic sectors to which 
the designation applies.
  ``(b) Reports.--The Secretary shall report to the Congress annually 
by not later than December 31 each year regarding the geographic 
region-specific warnings and economic sector-specific warnings issued 
during the preceding fiscal year under the Homeland Security Advisory 
System referred to in section 201(d)(7), and the bases for such 
warnings. The report shall be submitted in unclassified form and may, 
as necessary, include a classified annex.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 202 the following:

``203. Homeland Security Advisory System.''.

SEC. 5. COORDINATION OF INDUSTRY EFFORTS.

  Section 102(f) of the Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 112(f)) is amended by striking ``and'' after the 
semicolon at the end of paragraph (6), by striking the period at the 
end of paragraph (7) and inserting ``; and'', and by adding at the end 
the following:
          ``(8) coordinating industry efforts to identify private 
        sector resources and capabilities that could be effective in 
        supplementing Federal, State, and local government agency 
        efforts to prevent or respond to a terrorist attack.''.

SEC. 6. SUPERSEDED PROVISION.

  This Act supersedes section 1014 of Public Law 107-56.

SEC. 7. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

  (a) Finding.--The Congress finds that--
          (1) many first responders working in the same jurisdiction or 
        in different jurisdictions cannot effectively and efficiently 
        communicate with one another, and
          (2) their inability to do so threatens the public's safety 
        and may result in unnecessary loss of lives and property.
  (b) Sense of Congress.--It is the sense of the Congress that it is of 
national importance that interoperable emergency communications systems 
that to the extent possible meet national voluntary consensus standards 
should be developed and promulgated as soon as practicable for use by 
the first responder community.

SEC. 8. SENSE OF CONGRESS REGARDING CITIZEN CORPS COUNCILS.

  (a) Finding.--The Congress finds that Citizen Corps councils help to 
enhance local citizen participation in terrorism preparedness by 
coordinating multiple Citizen Corps programs, developing community 
action plans, assessing possible threats, and identifying local 
resources.
  (b) Sense of Congress.--It is the sense of the Congress that 
individual Citizen Corps councils should seek to enhance the 
preparedness and response capabilities of all organizations 
participating in the councils, including by providing funding to as 
many of their participating organizations as practicable to promote 
local terrorism preparedness programs.

SEC. 9. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

  (a) Study.--The Secretary of Homeland Security, in consultation with 
the heads of other appropriate Federal agencies and representatives of 
providers and participants in the telecommunications industry, shall 
conduct a study to determine whether it is cost-effective, efficient, 
or feasible to establish and implement an emergency telephonic alert 
notification system that will--
          (1) alert persons in the United States of imminent or current 
        hazardous events caused by acts of terrorism; and
          (2) provide information to individuals regarding appropriate 
        measures that may be undertaken to alleviate or minimize 
        threats to their safety and welfare posed by such events.
  (b) Technologies to Consider.--In conducting the study, the Secretary 
shall consider the use of the telephone, wireless communications, and 
other existing communications networks to provide such notification.
  (c) Report.--Not later than 9 months after the date of the enactment 
of this Act, the Secretary shall submit to the Congress a report 
regarding the conclusions of the study.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

  For making covered grants (as that term is defined in section 1807 of 
the Homeland Security Act of 2002, as amended by this Act) there is 
authorized to be appropriated to the Secretary of Homeland Security 
$3,400,000,000 for fiscal year 2006.

SEC. 11. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
                    GUARANTEES.

  (a) Finding.--Congress finds that there is a public interest in 
protecting high-risk nonprofit organizations from international 
terrorist attacks that would disrupt the vital services such 
organizations provide to the people of the United States and threaten 
the lives and well-being of United States citizens who operate, 
utilize, and live or work in proximity to such organizations.
  (b) Purposes.--The purposes of this section are to--
          (1) establish within the Department of Homeland Security a 
        program to protect United States citizens at or near high-risk 
        nonprofit organizations from international terrorist attacks 
        through loan guarantees and Federal contracts for security 
        enhancements and technical assistance;
          (2) establish a program within the Department of Homeland 
        Security to provide grants to local governments to assist with 
        incremental costs associated with law enforcement in areas in 
        which there are a high concentration of high-risk nonprofit 
        organizations vulnerable to international terrorist attacks; 
        and
          (3) establish an Office of Community Relations and Civic 
        Affairs within the Department of Homeland Security to focus on 
        security needs of high-risk nonprofit organizations with 
        respect to international terrorist threats.
  (c) Authority.--The Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.), as amended by this Act, is further amended by adding at the end 
the following:

      ``TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT 
                             ORGANIZATIONS

``SEC. 1901. DEFINITIONS.

  `` In this title:
          ``(1) Contract.--The term `contract' means a contract between 
        the Federal Government and a contractor selected from the list 
        of certified contractors to perform security enhancements or 
        provide technical assistance approved by the Secretary under 
        this title.
          ``(2) Favorable repayment terms.--The term `favorable 
        repayment terms' means the repayment terms of loans offered to 
        nonprofit organizations under this title that--
                  ``(A) are determined by the Secretary, in 
                consultation with the Secretary of the Treasury, to be 
                favorable under current market conditions;
                  ``(B) have interest rates at least 1 full percentage 
                point below the market rate; and
                  ``(C) provide for repayment over a term not less than 
                25 years.
          ``(3) Nonprofit organization.--The term `nonprofit 
        organization' means an organization that--
                  ``(A) is described under section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code; and
                  ``(B) is designated by the Secretary under section 
                1903(a).
          ``(4) Security enhancements.--The term `security 
        enhancements'--
                  ``(A) means the purchase and installation of security 
                equipment in real property (including buildings and 
                improvements), owned or leased by a nonprofit 
                organization, specifically in response to the risk of 
                attack at a nonprofit organization by an international 
                terrorist organization;
                  ``(B) includes software security measures; and
                  ``(C) does not include enhancements that would 
                otherwise have been reasonably necessary due to 
                nonterrorist threats.
          ``(5) Technical assistance.--The term `technical 
        assistance'--
                  ``(A) means guidance, assessment, recommendations, 
                and any other provision of information or expertise 
                which assists nonprofit organizations in--
                          ``(i) identifying security needs;
                          ``(ii) purchasing and installing security 
                        enhancements;
                          ``(iii) training employees to use and 
                        maintain security enhancements; or
                          ``(iv) training employees to recognize and 
                        respond to international terrorist threats; and
                  ``(B) does not include technical assistance that 
                would otherwise have been reasonably necessary due to 
                nonterrorist threats.

``SEC. 1902. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
                    GUARANTEES.

  ``(a) In General.--The Secretary may--
          ``(1) enter into contracts with certified contractors for 
        security enhancements and technical assistance for nonprofit 
        organizations; and
          ``(2) issue Federal loan guarantees to financial institutions 
        in connection with loans made by such institutions to nonprofit 
        organizations for security enhancements and technical 
        assistance.
  ``(b) Loans.--The Secretary may guarantee loans under this title--
          ``(1) only to the extent provided for in advance by 
        appropriations Acts; and
          ``(2) only to the extent such loans have favorable repayment 
        terms.

``SEC. 1903. ELIGIBILITY CRITERIA.

  ``(a) In General.--The Secretary shall designate nonprofit 
organizations as high-risk nonprofit organizations eligible for 
contracts or loans under this title based on the vulnerability of the 
specific site of the nonprofit organization to international terrorist 
attacks.
  ``(b) Vulnerability Determination.--In determining vulnerability to 
international terrorist attacks and eligibility for security 
enhancements or technical assistance under this title, the Secretary 
shall consider--
          ``(1) threats of international terrorist organizations (as 
        designated by the State Department) against any group of United 
        States citizens who operate or are the principal beneficiaries 
        or users of the nonprofit organization;
          ``(2) prior attacks, within or outside the United States, by 
        international terrorist organizations against the nonprofit 
        organization or entities associated with or similarly situated 
        as the nonprofit organization;
          ``(3) the symbolic value of the site as a highly recognized 
        United States cultural or historical institution that renders 
        the site a possible target of international terrorism;
          ``(4) the role of the nonprofit organization in responding to 
        international terrorist attacks; and
          ``(5) any recommendations of the applicable State Homeland 
        Security Authority established under section 1906 or Federal, 
        State, and local law enforcement authorities.
  ``(c) Documentation.--In order to be eligible for security 
enhancements, technical assistance or loan guarantees under this title, 
the nonprofit organization shall provide the Secretary with 
documentation that--
          ``(1) the nonprofit organization hosted a gathering of at 
        least 100 or more persons at least once each month at the 
        nonprofit organization site during the preceding 12 months; or
          ``(2) the nonprofit organization provides services to at 
        least 500 persons each year at the nonprofit organization site.
  ``(d) Technical Assistance Organizations.--If 2 or more nonprofit 
organizations establish another nonprofit organization to provide 
technical assistance, that established organization shall be eligible 
to receive security enhancements and technical assistance under this 
title based upon the collective risk of the nonprofit organizations it 
serves.

``SEC. 1904. USE OF LOAN GUARANTEES.

  ``Funds borrowed from lending institutions, which are guaranteed by 
the Federal Government under this title, may be used for technical 
assistance and security enhancements.

``SEC. 1905. NONPROFIT ORGANIZATION APPLICATIONS.

  ``(a) In General.--A nonprofit organization desiring assistance under 
this title shall submit a separate application for each specific site 
needing security enhancements or technical assistance.
  ``(b) Content.--Each application shall include--
          ``(1) a detailed request for security enhancements and 
        technical assistance, from a list of approved enhancements and 
        assistance issued by the Secretary under this title;
          ``(2) a description of the intended uses of funds to be 
        borrowed under Federal loan guarantees; and
          ``(3) such other information as the Secretary shall require.
  ``(c) Joint Application.--Two or more nonprofit organizations located 
on contiguous sites may submit a joint application.

``SEC. 1906. REVIEW BY STATE HOMELAND SECURITY AUTHORITIES.

  ``(a) Establishment of State Homeland Security Authorities.--In 
accordance with regulations prescribed by the Secretary, each State may 
establish a State Homeland Security Authority to carry out this title.
  ``(b) Applications.--
          ``(1) Submission.--Applications shall be submitted to the 
        applicable State Homeland Security Authority.
          ``(2) Evaluation.--After consultation with Federal, State, 
        and local law enforcement authorities, the State Homeland 
        Security Authority shall evaluate all applications using the 
        criteria under section 1903 and transmit all qualifying 
        applications to the Secretary ranked by severity of risk of 
        international terrorist attack.
          ``(3) Appeal.--An applicant may appeal the finding that an 
        application is not a qualifying application to the Secretary 
        under procedures that the Secretary shall issue by regulation 
        not later than 90 days after the date of enactment of this 
        title.

``SEC. 1907. SECURITY ENHANCEMENT AND TECHNICAL ASSISTANCE CONTRACTS 
                    AND LOAN GUARANTEES.

  ``(a) In General.--Upon receipt of the applications, the Secretary 
shall select applications for execution of security enhancement and 
technical assistance contracts, or issuance of loan guarantees, giving 
preference to the nonprofit organizations determined to be at greatest 
risk of international terrorist attack based on criteria under section 
1903.
  ``(b) Security Enhancements and Technical Assistance; Followed by 
Loan Guarantees.--The Secretary shall execute security enhancement and 
technical assistance contracts for the highest priority applicants 
until available funds are expended, after which loan guarantees shall 
be made available for additional applicants determined to be at high 
risk, up to the authorized amount of loan guarantees. The Secretary may 
provide with respect to a single application a combination of such 
contracts and loan guarantees.
  ``(c) Joint Applications.--Special preference shall be given to joint 
applications submitted on behalf of multiple nonprofit organizations 
located in contiguous settings.
  ``(d) Maximizing Available Funds.--Subject to subsection (b), the 
Secretary shall execute security enhancement and technical assistance 
contracts in such amounts as to maximize the number of high-risk 
applicants nationwide receiving assistance under this title.
  ``(e) Applicant Notification.--Upon selecting a nonprofit 
organization for assistance under this title, the Secretary shall 
notify the nonprofit organization that the Federal Government is 
prepared to enter into a contract with certified contractors to install 
specified security enhancements or provide specified technical 
assistance at the site of the nonprofit organization.
  ``(f) Certified Contractors.--
          ``(1) In general.--Upon receiving a notification under 
        subsection (e), the nonprofit organization shall select a 
        certified contractor to perform the specified security 
        enhancements, from a list of certified contractors issued and 
        maintained by the Secretary under subsection (j).
          ``(2) List.--The list referred to in paragraph (1) shall be 
        comprised of contractors selected on the basis of--
                  ``(A) technical expertise;
                  ``(B) performance record including quality and 
                timeliness of work performed;
                  ``(C) adequacy of employee criminal background 
                checks; and
                  ``(D) price competitiveness.
          ``(3) Other certified contractors.--The Secretary shall 
        include on the list of certified contractors additional 
        contractors selected by senior officials at State Homeland 
        Security Authorities and the chief executives of county and 
        other local jurisdictions. Such additional certified 
        contractors shall be selected on the basis of the criteria 
        under paragraph (2).
  ``(g) Ensuring the Availability of Contractors.--If the list of 
certified contractors under this section does not include any 
contractors who can begin work on the security enhancements or 
technical assistance within 60 days after applicant notification, the 
nonprofit organization may submit a contractor not currently on the 
list to the Secretary for the Secretary's review. If the Secretary does 
not include the submitted contractor on the list of certified 
contractors within 60 days after the submission and does not place an 
alternative contractor on the list within the same time period (who 
would be available to begin the specified work within that 60-day 
period), the Secretary shall immediately place the submitted contractor 
on the list of certified contractors and such contractor shall remain 
on such list until--
          ``(1) the specified work is completed; or
          ``(2) the Secretary can show cause why such contractor may 
        not retain certification, with such determinations subject to 
        review by the Comptroller General of the United States.
  ``(h) Contracts.--Upon selecting a certified contractor to provide 
security enhancements and technical assistance approved by the 
Secretary under this title, the nonprofit organization shall notify the 
Secretary of such selection. The Secretary shall deliver a contract to 
such contractor within 10 business days after such notification.
  ``(i) Contracts for Additional Work or Upgrades.--A nonprofit 
organization, using its own funds, may enter into an additional 
contract with the certified contractor, for additional or upgraded 
security enhancements or technical assistance. Such additional 
contracts shall be separate contracts between the nonprofit 
organization and the contractor.
  ``(j) Expediting Assistance.--In order to expedite assistance to 
nonprofit organizations, the Secretary shall--
          ``(1) compile a list of approved technical assistance and 
        security enhancement activities within 45 days after the date 
        of enactment of this title;
          ``(2) publish in the Federal Register within 60 days after 
        such date of enactment a request for contractors to submit 
        applications to be placed on the list of certified contractors 
        under this section;
          ``(3) after consultation with the Secretary of the Treasury, 
        publish in the Federal Register within 60 days after such date 
        of enactment, prescribe regulations setting forth the 
        conditions under which loan guarantees shall be issued under 
        this title, including application procedures, expeditious 
        review of applications, underwriting criteria, assignment of 
        loan guarantees, modifications, commercial validity, defaults, 
        and fees; and
          ``(4) publish in the Federal Register within 120 days after 
        such date of enactment (and every 30 days thereafter) a list of 
        certified contractors, including those selected by State 
        Homeland Security Authorities, county, and local officials, 
        with coverage of all 50 States, the District of Columbia, and 
        the territories.

``SEC. 1908. LOCAL LAW ENFORCEMENT ASSISTANCE GRANTS.

  ``(a) In General.--The Secretary may provide grants to units of local 
government to offset incremental costs associated with law enforcement 
in areas where there is a high concentration of nonprofit 
organizations.
  ``(b) Use.--Grant funds received under this section may be used only 
for personnel costs or for equipment needs specifically related to such 
incremental costs.
  ``(c) Maximization of Impact.--The Secretary shall award grants in 
such amounts as to maximize the impact of available funds in protecting 
nonprofit organizations nationwide from international terrorist 
attacks.

``SEC. 1909. OFFICE OF COMMUNITY RELATIONS AND CIVIC AFFAIRS.

  ``(a) In General.--There is established within the Department, the 
Office of Community Relations and Civic Affairs to administer grant 
programs for nonprofit organizations and local law enforcement 
assistance.
  ``(b) Additional Responsibilities.--The Office of Community Relations 
and Civic Affairs shall--
          ``(1) coordinate community relations efforts of the 
        Department;
          ``(2) serve as the official liaison of the Secretary to the 
        nonprofit, human and social services, and faith-based 
        communities; and
          ``(3) assist in coordinating the needs of those communities 
        with the Citizen Corps program.

``SEC. 1910. AUTHORIZATION OF APPROPRIATIONS AND LOAN GUARANTEES.

  ``(a) Nonprofit Organizations Program.--There are authorized to be 
appropriated to the Department to carry out the nonprofit organization 
program under this title, $100,000,000 for fiscal year 2005 and such 
sums as may be necessary for fiscal years 2006 and 2007.
  ``(b) Local Law Enforcement Assistance Grants.--There are authorized 
to be appropriated to the Department for local law enforcement 
assistance grants under section 1908, $50,000,000 for fiscal year 2005 
and such sums as may be necessary for fiscal years 2006 and 2007.
  ``(c) Office of Community Relations and Civic Affairs.--There are 
authorized to be appropriated to the Department for the Office of 
Community Relations and Civic Affairs under section 1909, $5,000,000 
for fiscal year 2005 and such sums as may be necessary for fiscal years 
2006 and 2007.
  ``(d) Loan Guarantees.--
          ``(1) Authorization of appropriations.--There are authorized 
        to be appropriated in each of fiscal years 2005, 2006, and 
        2007, such amounts as may be required under the Federal Credit 
        Act with respect to Federal loan guarantees authorized by this 
        title, which shall remain available until expended.
          ``(2) Limitation.--The aggregate value of all loans for which 
        loan guarantees are issued under this title by the Secretary 
        may not exceed $250,000,000 in each of fiscal years 2005, 2006, 
        and 2007.''.
  (d) Clerical Amendment.--The table of contents under section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101(b)) is amended by 
adding at the end the following:

      ``TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT 
                             ORGANIZATIONS

``Sec. 1901. Definitions.
``Sec. 1902. Authority to enter into contracts and issue Federal loan 
guarantees.
``Sec. 1903. Eligibility criteria.
``Sec. 1904. Use of loan guarantees.
``Sec. 1905. Nonprofit organization applications.
``Sec. 1906. Review by State Homeland Security Authorities.
``Sec. 1907. Security enhancement and technical assistance contracts 
and loan guarantees.
``Sec. 1908. Local law enforcement assistance grants.
``Sec. 1909. Office of Community Relations and Civic Affairs.
``Sec. 1910. Authorization of appropriations and loan guarantees.''.

                          Purpose and Summary

    H.R. 3266, the ``Faster and Smarter Funding for First 
Responders Act of 2004'' would improve the effectiveness and 
efficiency with which the Department of Homeland Security 
(``DHS'') issues grants to States, local governments, and first 
responders to prevent, prepare for, mitigate, and respond to 
terrorism.

                Background and Need for the Legislation

    H.R. 3266, the ``Faster and Smarter Funding for First 
Responders Act of 2004,'' was introduced on October 8, 2003. 
The bill changes the criteria for distributing funding for two 
existing grant programs managed by the Office for Domestic 
Preparedness (``ODP''). Since 1998, ODP, as part of the 
Department of Homeland Security and previously as part of the 
Department of Justice, has had the mission of enhancing State 
and local capabilities for responding to terrorists using 
weapons of mass destruction (``WMD''). One of the two grant 
programs is the State Homeland Security grant program, which 
the Committee on the Judiciary authorized in the USA PATRIOT 
Act after the September 11, 2001 terrorist attacks. The other 
grant program is the Urban Area Security Initiative grant 
program, which was established in fiscal year 2003. The bill 
was introduced to improve the management of these grant because 
of numerous complaints from State and local governments and 
first responder organizations that the money was not being 
distributed efficiently and effectively.

              FOCUS ON TERRORISM PREPAREDNESS AND RESPONSE

    The Judiciary Committee has long understood that State and 
local officials must be trained and assisted in the essential 
skills necessary to deal with a terrorist attack. While some 
argue that the grants should be provided for all hazards, a 
terrorist attack is a Federal crime and requires skills and 
training above and beyond those needed to deal with a natural 
disaster. ODP provides the needed funds for unique training, 
equipment, and technical assistance to all first responders in 
the event of a terrorist attack or a planned attack based on 
the unique needs for such an event. Prevention is one such 
unique need. Indeed, in its recently issued report, DHS's Task 
Force on State and Local Homeland Security Funding ``strongly 
recommend[ed] that State and local governments consider 
allocating these and future resources to enhance the ability of 
State, county, municipal and tribal governments to detect and 
prevent future acts of terrorism.'' \1\
---------------------------------------------------------------------------
    \1\ U.S. Department of Homeland Security, the Homeland Security 
Advisory Council, A Report from the Task Force on State and Local 
Homeland Security Funding, p. 13 (June 2004).
---------------------------------------------------------------------------
    As a result of the Committee on the Judiciary's efforts, 
ODP coordinates and manages these programs. ODP, when it was 
part of the Department of Justice, was responsible for 
establishing Federal domestic preparedness programs and 
activities to assist State and local governments to prepare 
for, and respond to, terrorist incidents, including attacks 
involving weapons of mass destruction. In 2001, the Committee 
on the Judiciary, through the enactment of the USA PATRIOT Act 
(Public Law No. 107-56), authorized ODP (formerly the Office 
for State and Local Domestic Preparedness Support of the Office 
of Justice Programs) to provide State grants that enhance the 
capability of State and local jurisdictions to prepare for, and 
respond to, terrorist acts. The Committee on the Judiciary 
changed the name of this office to the Office of Domestic 
Preparedness in Public Law No. 107-273, the ``21st Century 
Department of Justice Appropriations Authorization Act,'' and 
further authorized ODP. ODP was transferred from the Department 
of Justice to the Department of Homeland Security in H.R. 5005, 
the ``Homeland Security Act,'' which became Public Law No. 107-
296 on November 25, 2002.

               THE STATE HOMELAND SECURITY GRANT PROGRAM

    The State Homeland Security grant program provides direct 
financial assistance to each of the Nation's States and 
territories. The program is designed to enhance the capability 
of State and local agencies to prevent and respond to incidents 
of terrorism involving the use of chemical, biological, 
radiological, nuclear, or explosive weapons. Under the formula 
authorized in the USA PATRIOT Act, the DHS distributes three 
quarters of 1 percent (.75 %) of the amount appropriated for 
the program to each State. The remaining amount is distributed 
based upon population.

            THE URBAN AREA SECURITY INITIATIVE GRANT PROGRAM

    Under the Urban Area Security Initiative grant program, the 
Department of Homeland Security selected urban areas based on a 
formula that considered such factors as critical 
infrastructure, population density, and credible threat 
information. Funding was based upon an urban area assessment 
and strategic plan. Eighty percent of the funds allocated to 
the State under this program had to be awarded to the 
designated cities and contiguous counties within the urban area 
based on the strategic plan. The State was authorized to use 
the remaining twenty percent for further security enhancements 
within the urban area.

    CONSOLIDATION OF THE STATE HOMELAND SECURITY AND THE URBAN AREA 
                   SECURITY INITIATIVE GRANT PROGRAMS

    H.R. 3266, as introduced, would authorize the DHS to 
consolidate the State Homeland Security and the Urban Area 
Security Initiative grant programs and replace the minimum 
formula and population based distribution with a funding 
distribution based on: (1) the degree to which applications 
would lessen the threats, vulnerabilities, and consequences of 
a terrorist attack; and (2) the degree to which applications 
demonstrate a valid need for such funding. The bill also 
directs the Secretary of DHS to establish ``essential 
capabilities'' that different types of communities should 
obtain to prepare for potential terrorist acts, and directs 
grant assistance to be utilized to build these essential 
capabilities in a measurable fashion. Under the bill, the 
States must disburse the grant money to local governments 
within 45 days or receiving the funds. The bill would increase 
total funding in fiscal year 2006 to $3.4 billion, and would 
expand the suggested list of activities covered by the grants 
to include covering the costs of additional personnel during 
heightened threat alerts and training activities. Another 
change would allow the Department to transfer funds directly to 
local recipients.

                 THE COMMITTEE AMENDMENTS TO H.R. 3266

The Grant Formula
    The Committee supports robust funding for State and local 
first responders. First responders are most likely to confront 
a terrorist attack before any Federal official. According to 
the Appropriations committee website ``Since September 11, 
2001, $26.7 billion has been provided to first responders--
including terrorism prevention and preparedness, general law 
enforcement, firefighter assistance, airport security, seaport 
security, and public health preparedness.'' \2\ The Committee 
understands the limitation of resources and supports the 
efforts to consolidate the management of first responder grants 
under ODP. The Committee recognizes that the grants should be 
risk-based, but also realizes that the terrorist threat is 
flexible and will shift to targets not supported or protected. 
Often terrorists shift their focus from hard targets where 
security is enhanced to ``soft targets'' where security is 
weak. Our Nation's homeland security is only as strong as our 
weakest link.
---------------------------------------------------------------------------
    \2\ Highlights of the FY05 Homeland Security Appropriations Bill, 
website of House Committee on Appropriations, June 9th, 2004.
---------------------------------------------------------------------------
    The terrorists conspire against the United States and its 
citizens, wherever they may reside. Just this week, a Somali 
immigrant was indicted for plotting to bomb a shopping center 
in America's heartland. The aim of terrorists is to kill 
innocent people and eliminate every aspect of our society; and 
if they cannot strike one area, due to a build-up in defenses, 
they will strike another. So, while our defenses must focus 
more on the areas with greater threats and vulnerabilities, we 
cannot afford to ignore any part of our Nation. We must cover 
our heartland, as well as our coastal cities. The 911 attacks 
demonstrated that when one area of our Nation is attacked, the 
entire Nation is affected--our relatives, our National and 
local economies, and our morale are harmed. The death grip of a 
terrorist attack that touches one State--touches the Nation. 
Thus, the Committee has amended H.R. 3266 to reflect the 
balance between the need to base the grants on threats and the 
need to protect the entire Nation against the shifting sites of 
terrorists.
Coverage of Territories and Indian Tribes
    The security of Indian reservations and tribal lands 
against acts of terrorism must be considered by DHS and the 
States as part of their overall goal of protecting the American 
homeland against terrorism. The DHS must also consider security 
of the territories against acts of terrorism. H.R. 3266 as 
amended by the Committee on the Judiciary ensures such 
coverage. Similar to current law, the amended bill provides a 
base level of funding for the territories. Puerto Rico and the 
District of Columbia are treated as States. Indian Tribes are 
treated as described below.
    The Committee has amended H.R. 3266 in recognition that, 
while the ``Homeland Security Act of 2002'' (``HSA'') defines 
Indian Tribes as ``local governments,'' they are in fact 
sovereign governments that should be respected in the 
development of Federal homeland security policy. While some 
Indian Tribes already possess sophisticated emergency 
management infrastructure, the Committee acknowledges that many 
Indian Tribes lack the administrative capability and the public 
safety infrastructure to administer grant funds directly under 
this title. Therefore, in section 1804 as amended, the 
Committee establishes a program to permit twenty ``directly 
eligible Tribes'' or consortia of tribes to receive covered 
grants from DHS. This program parallels that established for 
regions; it requires directly eligible Tribes to designate a 
liaison, to submit simultaneously its application to both DHS 
and to each State within the boundaries of which any part of 
that tribe is located and to submit an application consistent 
with any applicable State homeland security plan or plans.
    The Committee, however, recognizes that the vast majority 
of Indian Tribes will not be eligible to receive direct grant 
funding. As a consequence, the Committee expects the States to 
treat Indian Tribes fairly in the grant process. In section 
1804(c)(1)(D)(i) as amended, for example, the Committee directs 
States to consider tribal homeland security issues in their 
homeland security plans in the same manner as other entities 
defined as ``local governments.''
    In section 1804(e)(6)(f) as amended, the Committee 
instructs States to treat Indian Tribes like any other entity 
defined as a ``local government'' in determining how to provide 
funds in accordance with those plans. Thus, Indian Tribes, like 
other entities defined as ``local governments'' under the HSA, 
are eligible to receive grant funds as a pass-through to the 
extent consistent with any applicable State homeland security 
plan or plans. In addition, the Committee strongly anticipates 
that States will not place unreasonable conditions or 
restrictions on tribal receipt of grant funds, such as dividing 
tribal lands among different funding regions or districts or 
requiring loyalty oaths or waivers of sovereign immunity.
    The Committee hopes that this program will result in an 
outcome analogous to that of the Tribal Self Governance Program 
established pursuant to the ``Indian Self-Determination and 
Education Assistance Act of 1974.'' That program, which the 
Federal Government and Indian Tribes widely view as a success, 
not only represents a workable approach to enhancing tribal 
government capabilities, but also respects the government-to-
government relationship between the United States and Indian 
Tribes. Finally, nothing in this title is intended to exclude 
Indian Tribes where the term ``local government'' is used on 
its own, because as noted above, under the HSA, Indian Tribes 
are included in the definition of ``local government.''

                                Hearings

    The Committee's Subcommittee on Crime, Terrorism, and 
Homeland Security held one hearing on H.R. 3266 on November 20, 
2003. Testimony was received from three witnesses: The 
Honorable Suzanne Mencer, Director of the Office for Domestic 
Preparedness in the Department of Homeland Security; the 
Honorable Raymond Kelly, Commissioner of Police for the City of 
New York; and Bill Bishop, Director of the Idaho Bureau of 
Homeland Security.

                        Committee Consideration

    On June 16, 2004, the Committee on the Judiciary met in 
open session and ordered favorably reported the bill, H.R. 
3266, as amended, by a voice vote, a quorum being present.

                         Votes of the Committee

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee notes that there 
were no recorded votes during the Committee consideration of 
H.R. 3266.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 3266, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

H.R. 3266--Faster and Smarter Funding for First Responders Act of 2004

    Summary: Assuming appropriation of the necessary amounts, 
CBO estimates that implementing H.R. 3266 would cost about $3.5 
billion over the 2005-2009 period and an additional $400 
million after 2009. Enacting this bill would not affect direct 
spending or revenues.
    H.R. 3266 would authorize the Secretary of the Department 
of Homeland Security (DHS) to change the criteria used to 
distribute funding for two existing first responder grant 
programs established after September 11, 2001--the State 
Homeland Security and the Urban Area Security Initiative grant 
programs. In addition, this bill would authorize the 
appropriation of $3.4 billion in 2006 for first responder 
grants.
    H.R. 3266 would authorize the DHS to contract with 
appropriate companies to improve security at those 501(c)3 
nonprofit organizations that are determined to be most 
vulnerable to potential terrorist attacks. In addition, the 
bill would establish a new loan guarantee program for all 
nonprofit organizations that might need additional security 
enhancements to protect them from terrorist attacks. The bill 
also would establish a grant program for local law enforcement 
agencies to offset costs associated with increased security in 
areas with a high concentration of nonprofit organizations. 
Finally, the bill would establish a new Office of Community 
Relations and Civic Affairs to administer the new security 
program for nonprofit organizations, among other duties.
    H.R. 3266 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Assuming the authorized amount is fully appropriated, the bill 
would increase funding for existing aid programs while changing 
conditions for receiving those funds; any costs incurred by 
state, local, or tribal governments would be voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3266 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

First Responder Grant Program:
    Authorization Level............................................        *    3,400        0        0        0
    Estimated Outlays..............................................        *      510    1,020      918      578
Security Contracts for Nonprofit Organizations \1\:
    Estimated Authorization Level..................................      100      100      100        0        0
    Estimated Outlays..............................................       25       75      100       75       25
Loan Guarantees for Nonprofit Organizations:
    Estimated Authorization Level..................................       13       13       13        0        0
    Estimated Outlays..............................................        3       10       13       10        3
Law Enforcement Grants \1\:
    Estimated Authorization Level..................................       50       50       50        0        0
    Estimated Outlays..............................................       12       38       50       38       12
Office of Community Relations and Civic Affairs \1\:
    Estimated Authorization Level..................................        5        5        5        0        0
    Estimated Outlays..............................................        5        5        5        0        0
Total Changes:
    Estimated Authorization Level..................................      168    3,568      168        0        0
    Estimated Outlays..............................................       45      638    1,188    1,041      618
----------------------------------------------------------------------------------------------------------------
\1\ The 2006 and 2007 levels assume these programs continue at the level authorized for 2005.

Note.--* = Costs of less than $500,000 for administrative changes that would be made by the bill.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3266 will be enacted near the end of fiscal year 2004 and that 
the necessary amounts will be appropriated in each year 
starting in 2005. Estimates of outlays are based on historical 
spending patterns of similar programs and information from the 
Department of Homeland Security. CBO estimates that 
implementing H.R. 3266 would cost about $3.5 billion over the 
2005-2009 period and an additional $400 million after 2009.

First Responder Grants

    Almost $10 billion has been appropriated for first 
responder grants since fiscal year 2003, including about $3 
billion in fiscal year 2004. The Office of Domestic 
Preparedness (within DHS) derives its primary authority to 
distribute grants to states and localities to prepare and 
respond to terrorism from the USA PATRIOT Act (Public Law 107-
56). That law authorized the appropriation of such sums as 
necessary for first responder grants through fiscal year 2007. 
H.R. 3266 would replace this authorization of appropriations 
with a one-year authorization of $3.4 billion in fiscal year 
2006.
    For this estimate, CBO assumes that states would need to 
update their State Homeland Security Plans for approval by DHS 
to reflect new grant requirements. After that update, we expect 
that spending would follow historical spending patterns for 
existing state and local grant programs for emergency 
management activities. CBO estimates that implementing the 
first responder grant program would cost about $3 billion over 
the 2006-2009 period and nearly $400 million after 2009.
    Under the State Homeland Security grant program, DHS 
distributes three-quarters of one percent of the amount 
appropriated for the program to each state. The remaining funds 
are distributed to states based on population. The Urban Area 
Security Initiative grant program provides funding to high-
threat areas of the country. Under H.R. 3266, DHS would 
consolidate these two existing programs and distribute 0.25 
percent of the grants to each state, 0.08 percent to U.S. 
territories, and 0.25 percent to eligible tribes. The rest of 
the funding would be distributed based on threats, 
vulnerabilities, and risk assessments for each state and 
locality. H.R. 3266 also would require states to disburse grant 
money to local governments within 45 days of receiving funds 
from the federal government, or states would face penalties as 
well as pay 25 percent of the total cost of the grant 
activities.

Security Contracts for Nonprofit Organizations

    H.R. 3266 would authorize the DHS to contract with 
appropriate companies to improve security at those 501(c)(3) 
nonprofit organizations that are determined to be most 
vulnerable to potential terrorist attacks. Nonprofit 
organizations would have to meet certain criteria, such as 
providing services to at least 500 persons each year at a 
particular site, to be eligible for assistance under this bill. 
H.R. 3266 would authorize the appropriation of $100 million in 
2005 and such sums as is necessary in 2006 and 2007 for these 
contracts. For this estimate, CBO assumes that amounts 
authorized to be appropriated in 2006 and 2007 would be equal 
to the 2005 authorization level. Assuming appropriation of the 
authorized funds, CBO estimates that implementing these 
security enhancement contracts would cost $300 million over the 
2005-2009 period.

Loan Guarantees for Nonprofit Organizations

    This legislation would establish a new loan guarantee 
program to improve security at nonprofit organizations. Under 
this new loan guarantee program, the federal government would 
insure loans, with at least a 25-year repayment term, made to 
such nonprofits to support security enhancements or to provide 
related training to employees. The legislation does not specify 
that any guarantee fees would be charged to the nonprofits or 
that there would not be any limitation on the percentage of the 
loan that would be insured by the federal government. 
Consequently, CBO assumes that DHS would insure up to 100 
percent of the loan value and that the borrower would not be 
charged any guarantee fees.
    This legislation would authorize the appropriation of such 
amounts as necessary for the cost of loan guarantees for 2005 
through 2007 and would authorize a $250 million limitation on 
the cumulative value of the loans that may be guaranteed for 
each fiscal year. The new loan program would be considered a 
discretionary federal credit program that requires 
appropriation action each year to establish this loan 
limitation and to provide a credit subsidy appropriation for 
the cost of such loan guarantees.
    Based on information from various nonprofit organizations, 
CBO assumes that nonprofit organizations face similar financial 
risks to those of small businesses. Using the Small Business 
Administration 7(a) program (i.e., the general business loan 
program) as a proxy, CBO assumes that, like small businesses, 
the default rate for loans made to nonprofit organizations 
would be about 10 percent and that recoveries on such losses 
would be about 50 percent. Using those assumptions, CBO 
estimates that the subsidy rate for the new loan guarantee 
program would be about 5 percent, and implementing this bill 
would cost $39 million over the next five years, assuming 
appropriation of the necessary amounts. (Note.--The 7(a) 
program has a smaller net subsidy because it includes up-front 
guarantee fees that offset some of the default costs.)

Law Enforcement Grants

    H.R. 3266 would authorize DHS to provide grants to local 
law enforcement agencies in areas where there is a high 
concentration of nonprofit organizations. These grants would 
pay for increased costs associated with protecting these 
organizations. H.R. 3266 would authorize the appropriation of 
$50 million in 2005 and such sums as is necessary in 2006 and 
2007 for these grants. For this estimate, CBO assumes that the 
amount authorized to be appropriated in 2006 and 2007 would be 
equal to the 2005 authorization level. Assuming appropriation 
of the authorized funds, CBO estimates that providing these 
grants would cost $150 million over the 2005-2009 period.

Office of Community Relations and Civic Affairs

    This bill would establish a new office within DHS to 
administer the new security enhancement program for nonprofit 
organizations. In addition, the office would coordinate 
community relations efforts for the department, serve as the 
liaison to nonprofit, social services, and faith-based 
organizations, and assist in coordinating the needs of those 
communities for the department's Citizen Corps program. H.R. 
3266 would authorize the appropriation of $5 million in 2005 
and such sums as necessary in 2006 and 2007 for this office. 
For this estimate, CBO assumes that amounts authorized to be 
appropriated in 2006 and 2007 would be equal to the 2005 
authorization level. Assuming appropriation of the authorized 
funds, CBO estimates that this new office would cost $15 
million over the 2005-2009 period.
    Intergovernmental and private-sector impact: H.R. 3266 
contains no intergovernmental or private-sector mandates as 
defined in UMRA but would make several changes to existing 
grant programs. First, it would consolidate at least two 
current programs--the State Homeland Security Grant and the 
Urban Area Security Initiative--and authorize the appropriation 
of $3.4 billion in fiscal year 2006. Second, it would change 
how those funds are allocated. While some states would receive 
less funding than in previous years and others would receive 
more, assuming authorized funds are fully appropriated, total 
funding would increase. This bill also would expand eligible 
activities to include covering the costs of additional 
personnel during heightened threat alerts and training 
activities.
    This bill also would authorize DHS to transfer funds 
directly to the local recipients, reduce the portion of the 
grant retained by the state, or impose additional restrictions 
if states fail to provide funds to local first responders in a 
timely manner. According to the grant requirements, states 
would be required to certify that they have provided 80 percent 
of the funds within 45 days of receipt. Funds that states may 
lose would be allocated to local jurisdictions. Any costs 
incurred by state, local, or tribal governments as a result of 
those changes to the grant programs would be voluntary.
    Other provisions of the bill would require DHS to create, 
with input from local first responders and trade 
representatives, voluntary standards for equipment and training 
for first responders. The bill also would require DHS to revise 
the Homeland Security Advisory System to include geographic and 
economic-sector designations.
    Previous CBO estimates: On July 16, 2003, CBO transmitted a 
cost estimate for S. 1245, the Homeland Security Grant 
Enhancement Act of 2003, as ordered reported by the Senate 
Committee on Governmental Affairs on June 17, 2003. On 
September 9, 2003, CBO transmitted a cost estimate for S. 930, 
the Emergency Preparedness and Response Act of 2003, as ordered 
reported by the Senate Committee on Environment and Public 
Works on July 30, 2003. Both bills would authorize the 
appropriation of different grant amounts for first responders. 
S. 930 also would authorize grants for urban search and rescue 
task forces.
    On March 30, 2004, CBO transmitted a cost estimate for H.R. 
3266 as ordered reported by the House Select Committee on 
Homeland Security on March 18, 2004. On June 8, 2004, CBO 
transmitted a cost estimate for H.R. 3266 as ordered reported 
by the House Committee on Energy and Commerce on June 3, 2004. 
The versions of the legislation approved by those two 
committees are similar, and the cost estimates are identical.
    On June 14, 2004, CBO transmitted a cost estimate for H.R. 
3266, the Faster and Smarter Funding for First Responders Act 
of 2004, as ordered reported by the House Committee on 
Transportation and Infrastructure on June 2, 2004. This version 
would authorize the appropriation of funds over the 2006-2009 
period, while the other versions of H.R. 3266 would authorize 
funding only for 2006.
    The version approved by the House Committee on the 
Judiciary is similar to the version approved by the Select 
Committee on Homeland Security, but it would guarantee minimum 
funding for states, territories, and tribes. In addition, the 
version approved by the House Committee on the Judiciary 
includes new grant and loan guarantee programs to enhance 
security at high-risk nonprofit organizations. These new 
programs would cost about $500 million over the 2005-2009 
period.
    Estimate prepared by: Federal Costs: Julie Middleton and 
Susanne Mehlman; Impact on State, Local, and Tribal 
Governments: Melissa Merrell; and Impact on the Private Sector: 
Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee on the Judiciary agrees 
with the statement of the Select Committee on Homeland Security 
that H.R. 3266 is intended to ``reform the manner in which the 
Department of Homeland Security issues grants to enhance the 
ability of States, local governments, and first responders to 
prevent, prepare for, mitigate, and respond to acts of 
terrorism; (2) to direct the Secretary of DHS to establish 
`essential capabilities' that different types of communities 
should obtain in order to prepare for potential terrorist acts; 
(3) to improve the grant process by streamlining and speeding 
up the delivery of Federal grant assistance for first 
responders to build these essential capabilities in a 
measurable fashion; and (4) to establish a consolidated 
structure for evaluating and prioritizing grant applications 
based on the degree to which they would lessen the threat to, 
vulnerability of, and consequences for persons and critical 
infrastructure sectors in the event of a terrorist attack.'' 
\3\
---------------------------------------------------------------------------
    \3\ H.R. Rep. No. 108-460, Part I at 22.
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                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, of the Constitution, 
which grants Congress the power to provide the common defense 
of the United States.

               Section-by-Section Analysis and Discussion

    Sec. 1. Short title; table of contents. The short title is 
the ``Faster and Smarter Funding for First Responders Act of 
2004.''
    Sec. 2. Findings. The bill contains 13 finding of facts 
that: (1) the Department of Homeland Security must play a 
leading role in assisting communities to be prepared to respond 
to a terrorist attack; (2) first responder funding is not 
reaching communities fast enough; (3) the authority and 
procedures must be consolidated at the Department of Homeland 
Security; (4) there must be separate grant programs for 
terrorist preparedness and for the pre-9/11 missions; (5) 
homeland security grants must be based on best intelligence to 
target resources to the Nation's greatest risks, 
vulnerabilities, and consequences; (6) sharing resources, 
training, planning, personnel, and equipment between 
neighboring jurisdictions will improve first response 
capabilities; (7) well defined National goals are essential to 
achieve the Nation's homeland security objectives; (8) a 
National determination of essential capabilities is needed to 
identify levels of preparedness by State and local governments 
to respond to terrorism and the needs of those governments; (9) 
the Department should fund first responders to meet Nationwide 
needs to allow States to attain essential capabilities; (10) 
private sector resources and citizen volunteers can perform 
critical functions to help prevent and respond to terrorist 
attacks and should be part of the State and local government 
plans to prepare for such attacks; (11) public-private 
partnerships can be useful to identify and coordinate private 
sector support for State and local first responders; (12) 
measurability is an important component of National standards 
to determine the level of preparedness of States and 
localities; and (13) the Department of Homeland Security should 
establish, publish, and regularly update National voluntary 
consensus standards for both training and equipment, in 
cooperation with both public and private sector standard 
setting organizations to assist States and localities.
    Sec. 3. Faster and Smarter Funding for First Responders. 
This section amends the ``Homeland Security Act of 2002'' 
(Public Law No. 107-296; 6 U.S.C. Sec. 361 et seq.) by adding a 
new title XVIII--Funding for First Responders. There are seven 
sections under this new title, which authorize a first 
responder grant program that would replace the program 
authorized in the USA PATRIOT Act.

          Section 1801. Faster and smarter funding for first 
        responders. This section describes that the grants 
        covered are the State Homeland Security Grant Program 
        and the Urban Area Security Information Program. This 
        section also states that grants excluded are any 
        Federal grant program not administered by the 
        Department of Homeland Security, the Fire Grant 
        Program, and the Emergency Management Planning and 
        Assistance grants.
          Section 1802. Essential capabilities for first 
        responders. This section requires the Secretary to 
        establish clearly defined ``essential capabilities'' 
        for State and local government preparedness for 
        terrorism. Essential capabilities are defined as the 
        levels, availability, and competence of emergency 
        personnel, planning, training, and equipment to 
        effectively prevent, prepare for, and respond to acts 
        of terrorism under Sec. 1807. Determining essential 
        capabilities will help communities determine what 
        planning, training, equipment, and other capabilities 
        are needed to respond effectively to the specific risks 
        faced by the different States and regions.
          This section also lists areas that may be threatened 
        or vulnerable. Subparagraph (c)(2) specifically 
        provides a list of critical infrastructure to determine 
        essential capabilities. The Committee added courts and 
        justice facilities as well as ports and containers to 
        this list.
          Section 1803. Task force on essential capabilities 
        for first responders. This section requires the 
        Secretary to establish a Task Force on Essential 
        Capabilities for First Responders to make 
        recommendations for the essential capabilities that 
        State and local governments should possess to prevent 
        attacks; protect persons and critical infrastructure; 
        enhance terrorism preparedness; and enhance terrorism 
        response capabilities.
          This section provides a list of threats against the 
        population that may be considered in determining 
        critical infrastructure. For instance, the list 
        includes biological, nuclear, and chemical threats. The 
        Task Force report making these recommendations is to be 
        based upon the most current risk assessment of the 
        threats against the U.S. by the Directorate for 
        Information Analysis and Infrastructure Protection.
          Under this section, the report should include a 
        priority ranking of essential capabilities; a 
        methodology for States and localities to determine 
        whether essential capabilities have been met; a 
        description of the availability of national voluntary 
        consensus standards for equipment and training; and any 
        additional matters specified by the Secretary.
          This section also provides that members of the Task 
        Force shall receive appropriate security clearances. 
        Each member shall serve for a term not to exceed 18 
        months and be limited to two terms. The Members shall 
        include first responders, health scientists, medical 
        providers, and public health officials. Additionally 
        the membership shall include standard setting experts 
        from Federal, State, and local governments and the 
        private sector. State and local experts on terrorism 
        preparedness shall also be represented.
          The Federal Advisory Committee Act shall apply to the 
        Task Force.
          Section 1804. Covered grant eligibility and criteria. 
        This section sets the grant criteria and eligibility. 
        Any State or region is eligible to apply for a covered 
        grant.
          A grant may not be awarded unless the Secretary has 
        approved the applicable State homeland security plan. A 
        State must submit a 3-year homeland security plan that:

          (1) Ldemonstrates the extent to which a State has 
        achieved essential capabilities and describes the 
        extent to which the State used the methodology under 
        Sec. 1803(b)(4)(B) to evaluate the level of essential 
        capabilities;

          (2) Ldemonstrates what the State needs additionally 
        to achieve essential capabilities;

          (3) Lincludes prioritization of additional needs 
        based on threat, vulnerability, and consequence 
        assessments;

          (4) Ldescribes how the State plans to address 
        additional needs at all levels of local government; and

          (5) Lwas developed in consultation with local 
        government.

          The Secretary shall ensure each covered grant awarded 
        is used to supplement and support the applicable State 
        homeland security plan.
          This section allows for regions to apply for a grant. 
        The region must simultaneously submit its application 
        to the Department and to each State covered by the 
        region. Each State is provided an opportunity to 
        comment on the consistency of a region's grant with the 
        State's homeland security plan before the Secretary 
        awards a region a grant.
          The Committee recognizes that there is a long-
        standing, well established network of councils of 
        governments, regional planning commissions, regional 
        planning organizations, development districts and other 
        multipurpose associations of local governments that 
        have the capability and expertise necessary to 
        coordinate regional emergency response plans. The 
        composition of these entities varies widely.
          These organizations, collectively known as Regional 
        Councils, are multi-purpose, multi-jurisdictional 
        public organizations created by local governments to 
        respond to Federal and State programs. Many of them are 
        bi-State or even tri-State and are officially 
        recognized in the States and localities they serve. 
        Regional Councils also have a long history of working 
        with each other on projects that cross regions and 
        cross State lines. Having more than 40 years of 
        experience in planning economic development, disaster 
        recovery and transportation and infrastructure 
        analysis, they serve as ``conveners'' that bring 
        together the public, private, and civic sectors. The 
        Committee recognizes that these Regional Councils may 
        already be in a unique position to fill a void in 
        planning and in coordinating homeland security plans 
        across jurisdictional boundaries while providing an 
        unbiased and apolitical environment capable of 
        analyzing needs based on merit alone without creating 
        another layer of government bureaucracy.
          This section also establishes the ``First Responder 
        Grants Board.'' This Board consists of the Secretary, 
        who serves as the Chairman; the Under Secretaries for 
        Emergency Preparedness and Response, Border and 
        Transportation Security, Information Analysis and 
        Infrastructure Protection, and Science and Technology; 
        and the Director of the Office for Domestic 
        Preparedness.
          The Board shall evaluate and prioritize all current 
        grant applications and seek to enhance essential 
        capabilities throughout the Nation.
          The Committee amended this section to include a new 
        method of distribution and a guaranteed minimum that 
        would ensure that all States, Indian Tribes and 
        territories receive a guaranteed amount of funding. 
        Nevertheless, these changes will not preclude the 
        Department of Homeland Security from consolidating the 
        State Homeland Security and the Urban Area Security 
        Initiative Grant Programs as proposed under H.R. 3266 
        or from allocating grants based on threats, 
        vulnerabilities, and consequences for States and 
        localities.
          Specifically, the Committee amended this section in 
        two distinct ways. First, the Committee revised how the 
        Department of Homeland Security allocates the grants. 
        Under the State Homeland Security Grant Program, the 
        DHS provides each applicant with its guaranteed minimum 
        and then allocates a second distribution of the 
        remaining funds to each State on a population basis. As 
        amended by the Committee, the Department fo Homeland 
        Security would first allocate such grants based on risk 
        and then provide additional funds for those applicants 
        that have not met the minimum guaranteed threshold. 
        Second, the Committee revised the minimum formula. The 
        minimum base level will be .25 percent of the total 
        funds allocated to each State. This percentage was a 
        compromise between the current States with high-risk of 
        terrorism and the more rural States that may have a 
        lower risk of terrorism.
          Thus, for example, if the minimum equals $10 million 
        for each State, the revised formula (i.e., the new 
        distribution method and minimums) would work as 
        follows:

          LIf the Department of Homeland Security finds that 40 
        States qualify for funds greater than the $10 million 
        minimum, then such States would not receive any 
        additional funds. If the Department determines that the 
        other 10 States qualify for only $5 million based on a 
        risk assessment, then each State would receive an 
        additional $5 million to ensure that they receive the 
        minimum determined necessary for adequate protection. 
        Thus, only 10 States, in this hypothetical, would 
        receive an amount allocated without regard to risk 
        compared to the current formula where all States 
        receive an amount allocated without regard to risk.

          Accordingly, this amendment gives each State a base 
        level of funding so that every State is equipped to 
        fight terrorism. This amendment also recognizes that 
        various locales face varying threat levels and 
        therefore, allocates funds to areas based upon threats, 
        vulnerabilities, and consequences. These threats, 
        vulnerabilities, and consequences are forever changing 
        and shifting.
          The Committee also wanted to emphasize the importance 
        of focusing on threat and amended the bill to ensure 
        that the Department weighs threats above all other 
        criteria.
          Section 1805. Use of funds and accountability 
        requirements. This section provides a list for which 
        the grants may be used and a list of prohibited uses. 
        The list is non-exclusive. The section authorizes the 
        Secretary to provide funds for other appropriate uses. 
        Appropriate use of funds could, for example, be used to 
        purchase medical training equipment. The funds could 
        also be used to assist with the cost of building a 
        cruise ship screening facility required by the U.S. 
        Customs to screen passengers as they disembark from 
        cruise ships. The Directors of the CIA and the FBI have 
        both recently stated that al Qaeda has shifted its 
        focus to ``soft targets.'' Cruise ships could be the 
        target of such attacks as they have been in the past. 
        Cruise ships could also transport terrorists to our 
        shores.
          This section also requires the States to pass through 
        80 percent of the funds to local governments, first 
        responders, and other local groups. Section 1805 of the 
        Act requires States to pass through not less than 80 
        percent of the grant funds ``to local governments, 
        first responders, and other local groups, to the extent 
        required under State homeland security plan or plans 
        specified in the application of plans. . . .'' In most 
        jurisdictions, the public safety and first responder 
        structure is operated on a county or local jurisdiction 
        level with a support role by State government. In a few 
        jurisdictions, however, such as the Commonwealth of 
        Puerto Rico, the primary responsibility for public 
        safety services including police, fire, emergency 
        medical services, and HAZ-Mat, are principally operated 
        on a jurisdiction wide basis by professional 
        employees--in Puerto Rico's case, by professional 
        employees of Commonwealth agencies. In such a 
        jurisdiction, the grantee passing through grant funds 
        authorized by this legislation of such ``first 
        responder'' agencies meets the requirements of this 
        section.
          Additionally, the bill requires cost sharing with the 
        Federal share not to exceed 75 percent. The cost 
        sharing will not begin for 2 years after the date of 
        enactment. This section also allows for in-kind 
        matching to meet the matching requirement. This means 
        in-kind contributions of goods and services that are 
        directly linked with the purpose for which a grant is 
        made may be used for matching.
          This section contains penalties for failing to pass 
        through the required amount within 45 days after 
        receiving funds under the grant. The Governor of a 
        State may request in writing an extension for an 
        additional 15 days.
          This section also requires the Secretary of Homeland 
        Security to report to Congress annually on the program.
          Section 1806. National standards for first responder 
        equipment and training. This section requires the 
        Secretary, in consultation with the Under Secretary for 
        Science and Technology and the Director of the Office 
        for Domestic Preparedness, shall, not later than 6 
        months after the date of enactment of this section, 
        support the development of, promulgate, and update as 
        necessary National voluntary consensus standards for 
        the performance and use of first responder equipment 
        and training. For equipment standards, the bill 
        provides that the standards shall be, to the maximum 
        extent practicable, consistent with any existing 
        voluntary consensus standards. Additionally, the bill 
        States that the Secretary shall consult with relevant 
        public and private sector groups in establishing 
        National voluntary consensus standards and provide a 
        non-exclusive list. The bill addresses new standards 
        for first responders. Specifically, section 1806(c) 
        enumerates the associations with which the Department 
        should consult when developing voluntary consensus 
        standards for first responder equipment and training. 
        The Committee amended this section by adding the 
        International Safety Equipment Association (ISEA), the 
        trade association for manufacturers of protective 
        equipment, to the list of associations. The Committee 
        believes that manufacturers of protective equipment 
        would add vital insight on the limitations and 
        feasibilities of products and technologies.
          The bill also specifies categories of equipment and 
        training to be considered first responder equipment and 
        training.
          Section 1807. Definitions. This section defines 
        ``Task Force,'' ``Board,'' ``Covered Grant,'' 
        ``Elevations in the Threat Alert Level,'' ``Essential 
        Capabilities,'' ``First Responder,'' and ``Region.''
    Sec. 4. Modification of Homeland Security Advisory System. 
The bill would require the Secretary to revise the Homeland 
Security Advisory System to require that any designation of a 
threat level or other warning be accompanied by a designation 
of the geographic regions or economic sectors to which the 
designation applies. This section would also require the 
Secretary to report to Congress annually regarding the 
geographic region-specific or economic sector-specific warnings 
issued during the preceding fiscal year.
    Sec. 5. Coordination of industry efforts. This section 
amends section 102(f) of the Homeland Security Act of 2002 (6 
U.S.C. Sec. 112(f)), which required the Secretary to appoint a 
Special Assistant to the Secretary who shall be responsible for 
coordination of the Department's mission and responsibility 
with that of the Private Sector. This section would add that 
the Special Assistant would coordinate industry efforts ``to 
identify private sector resources and capabilities that could 
be effective in supplementing Federal, State, and local 
government agency efforts to prevent or respond to a terrorist 
attack.''
    Sec. 6. Superseded provision. This section states that the 
bill supersedes section 1014 of the USA PATRIOT Act, which 
created the State Homeland Security Grant program.
    Sec. 7. Sense of Congress regarding interoperable 
communications. This section states it is the sense of the 
Congress ``that interoperable emergency communications systems 
that to the extent possible meet National voluntary consensus 
standards should be developed and promulgated as soon as 
practicable for use by the first responder community.'' One 
pressing issue that first responders and the Federal Government 
must resolve is the issue of interoperability. In the Committee 
on the Judiciary's Fiscal Year 2004 Budget Views and Estimates, 
the Committee expressed its support for the Department of 
Homeland Security assistance to states and localities to 
resolve the issue of interoperability.
    The Committee believes that first responders should receive 
Federal support to resolve interoperability in its efforts to 
prevent, prepare for, and respond to terrorist attacks. 
Interoperability means first responders can communicate with 
other first responders when it is necessary. Communications may 
not be interoperable because local police, firefighters, and 
emergency workers are unable to exchange voice and data 
communications. There are various reasons for this problem, 
including antiquated equipment, incompatible systems, a lack of 
funding, and a fragmented spectrum.
    Sec. 8. Sense of Congress regarding Citizens Corps. This 
section provides that ``individual Citizen Corps councils 
should seek to enhance the preparedness and response 
capabilities of all organizations participating in the 
councils, including by providing funding to as many of their 
participating organizations as practicable to promote local 
terrorism preparedness programs.''
    Sec. 9. Study Regarding Nationwide Emergency Notification 
System. This section states that the Secretary of Homeland 
Security and other Federal agents shall conduct a study to see 
if it is feasible to implement an emergency telephonic alert 
notification system to alert US citizens of terrorist attacks 
and provide them with safety information. This section also 
provides various technologies for the Secretary to consider and 
requests a report within 9 months of the Act's enactment 
regarding the conclusions of the study.
    Sec. 10. Authorization of appropriations. This section 
authorizes to be appropriated to the Secretary $3.4 billion for 
fiscal year 2006 for the grants.
    Sec. 11. Authority to enter into contracts and issue 
Federal loan guarantees. The Committee added this section. This 
section would authorize the Secretary of Homeland Security to 
provide $100 million in security assistance in FY 2004 to 
501(c)(3) organizations that demonstrate they are at a high 
risk of a terrorist attack based upon specific threats of 
international terrorist organizations; prior attacks against 
similarly situated organizations by international terrorists; 
the vulnerability of the specific site; the symbolic value of 
the site as a highly recognized American institution; or the 
role of the institution in responding to terrorist attacks. 
After the funds have been expended for the highest risk 
institutions, Federal loan guarantees would be available to 
make loans available on favorable terms. Funds would be 
administered by a new office in the Department dedicated to 
working with high-risk non-profits.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
                    Protection; Access to Information

     * * * * * * *
203. Homeland Security Advisory System.
     * * * * * * *

                TITLE XVIII--FUNDING FOR FIRST RESPONDERS

1801. Faster and smarter funding for first responders.
1802. Essential capabilities for first responders.
1803. Task Force on Essential Capabilities for First Responders.
1804. Covered grant eligibility and criteria.
1805. Use of funds and accountability requirements.
1806. National standards for first responder equipment and training.
1807. Definitions.

 TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT ORGANIZATIONS

Sec. 1901. Definitions.
Sec. 1902. Authority to enter into contracts and issue Federal loan 
          guarantees.
Sec. 1903. Eligibility criteria.
Sec. 1904. Use of loan guarantees.
Sec. 1905. Nonprofit organization applications.
Sec. 1906. Review by State Homeland Security Authorities.
Sec. 1907. Security enhancement and technical assistance contracts and 
          loan guarantees.
Sec. 1908. Local law enforcement assistance grants.
Sec. 1909. Office of Community Relations and Civic Affairs.
Sec. 1910. Authorization of appropriations and loan guarantees.

SEC. 2. DEFINITIONS.

  In this Act, the following definitions apply:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The term ``emergency response providers'' 
        includes Federal, State, and local emergency public 
        safety, law enforcement, fire, emergency response, 
        emergency medical (including hospital emergency 
        facilities), and related personnel, agencies, and 
        authorities.

           *       *       *       *       *       *       *


TITLE I--DEPARTMENT OF HOMELAND SECURITY

           *       *       *       *       *       *       *


SEC. 102. SECRETARY; FUNCTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Special Assistant to the Secretary.--The Secretary shall 
appoint a Special Assistant to the Secretary who shall be 
responsible for--
          (1) * * *

           *       *       *       *       *       *       *

          (6) promoting existing public-private partnerships 
        and developing new public-private partnerships to 
        provide for collaboration and mutual support to address 
        homeland security challenges; [and]
          (7) assisting in the development and promotion of 
        private sector best practices to secure critical 
        infrastructure[.]; and
          (8) coordinating industry efforts to identify private 
        sector resources and capabilities that could be 
        effective in supplementing Federal, State, and local 
        government agency efforts to prevent or respond to a 
        terrorist attack.

           *       *       *       *       *       *       *


      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
Protection; Access to Information

           *       *       *       *       *       *       *


SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

  (a) In General.--The Secretary shall revise the Homeland 
Security Advisory System referred to in section 201(d)(7) to 
require that any designation of a threat level or other warning 
shall be accompanied by a designation of the geographic regions 
or economic sectors to which the designation applies.
  (b) Reports.--The Secretary shall report to the Congress 
annually by not later than December 31 each year regarding the 
geographic region-specific warnings and economic sector-
specific warnings issued during the preceding fiscal year under 
the Homeland Security Advisory System referred to in section 
201(d)(7), and the bases for such warnings. The report shall be 
submitted in unclassified form and may, as necessary, include a 
classified annex.

           *       *       *       *       *       *       *


               TITLE XVIII--FUNDING FOR FIRST RESPONDERS

SEC. 1801. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  (a) Covered Grants.--This title applies to any grant provided 
by the Department to States, regions, or directly eligible 
tribes to improve the ability of first responders to prevent, 
prepare for, respond to, or mitigate threatened or actual 
terrorist attacks, especially those involving weapons of mass 
destruction, and including any grant under the following:
          (1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or 
        any successor to such grant program.
          (2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor 
        to such grant program.
  (b) Excluded Programs.--This title does not apply to or 
otherwise affect the following Federal grant programs or any 
grant under such a program:
          (1) Nondepartment programs.--Any Federal grant 
        program that is not administered by the Department.
          (2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire 
        Prevention and Control Act of 1974 (15 U.S.C. 2229, 
        2229a).
          (3) Emergency management planning and assistance 
        account grants.--The Emergency Management Performance 
        Grant program and the Urban Search and Rescue Grants 
        program authorized by title VI of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5195 et seq.); the Departments of Veterans 
        Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 
        Stat. 1047 et seq.); and the Earthquake Hazards 
        Reduction Act of 1977 (42 U.S.C. 7701 et seq.).

SEC. 1802. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  (a) Establishment of Essential Capabilities.--
          (1) In general.--The Secretary shall establish 
        clearly defined essential capabilities for State and 
        local government preparedness for terrorism, in 
        consultation with--
                  (A) the Task Force on Essential Capabilities 
                for First Responders established under section 
                1803;
                  (B) the Under Secretaries for Emergency 
                Preparedness and Response, Border and 
                Transportation Security, Information Analysis 
                and Infrastructure Protection, and Science and 
                Technology, and the Director of the Office for 
                Domestic Preparedness;
                  (C) other appropriate Federal agencies;
                  (D) State and local first responder agencies 
                and officials; and
                  (E) groups responsible for setting standards 
                relevant to the first responder community.
          (2) Deadlines.--The Secretary shall--
                  (A) establish essential capabilities under 
                paragraph (1) within 30 days after receipt of 
                the initial submission of a final report under 
                section 1803(c)(2); and
                  (B) regularly update such essential 
                capabilities as necessary, but not less than 
                every 3 years.
          (3) Provision of essential capabilities.--The 
        Secretary shall ensure that essential capabilities 
        established under paragraph (1) are provided promptly 
        to the States and to the Congress. The States shall 
        make the essential capabilities available as necessary 
        and appropriate to local governments within their 
        jurisdictions.
  (b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the 
following objectives:
          (1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types 
        of communities in the Nation should possess, or to 
        which they should have access, in order to meet the 
        Department's goals for terrorism preparedness based 
        upon--
                  (A) the most current risk assessment 
                available by the Directorate for Information 
                Analysis and Infrastructure Protection of the 
                threats of terrorism against the United States; 
                and
                  (B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the 
                Secretary has determined to be applicable to 
                each different type of community.
          (2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow 
        State and local government officials to set priorities 
        based on particular needs, while reaching nationally 
        determined terrorism preparedness levels within a 
        specified time period.
          (3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
  (c) Threats to Be Considered.--
          (1) In general.--In establishing essential 
        capabilities under subsection (a)(1), the Secretary 
        specifically shall consider the variables of threat, 
        vulnerability, and consequences with respect to the 
        Nation's population (including transient commuting and 
        tourist populations) and critical infrastructure. Such 
        consideration shall be based upon the most current risk 
        assessment available by the Directorate for Information 
        Analysis and Infrastructure Protection of the threats 
        of terrorism against the United States.
          (2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism 
        against the following critical infrastructure sectors 
        in all areas of the Nation, urban and rural:
                  (A) Agriculture.
                  (B) Banking and finance.
                  (C) Chemical industries.
                  (D) The defense industrial base.
                  (E) Emergency services.
                  (F) Energy.
                  (G) Food.
                  (H) Government.
                  (I) Postal and shipping.
                  (J) Public health.
                  (K) Information and telecommunications 
                networks.
                  (L) Transportation, ports, and containers.
                  (M) Water.
                  (N) Courts and justice facilities.
        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 
        importance of such sectors.
          (3) Consideration of additional threats.--In 
        establishing essential capabilities under subsection 
        (a)(1), the Secretary shall take into account any other 
        specific threat to a population (including a transient 
        commuting or tourist population) or critical 
        infrastructure sector that the Secretary has determined 
        to exist.

SEC. 1803. TASK FORCE ON ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

  (a) Establishment.--To assist the Secretary in establishing 
essential capabilities under section 1802(a)(1), the Secretary 
shall establish an advisory body to be known as the Task Force 
on Essential Capabilities for First Responders not later than 
60 days after the date of the enactment of this section.
  (b) Draft Report.--
          (1) In general.--The Task Force shall submit to the 
        Secretary, not later than one year after its 
        establishment by the Secretary under subsection (a) and 
        every 3 years thereafter, a draft report on its 
        recommendations for the essential capabilities all 
        State and local government first responders should 
        possess, or to which they should have access, to 
        enhance terrorism preparedness, including--
                  (A) to prevent a terrorist attack;
                  (B) to protect persons and critical 
                infrastructure against attack; and
                  (C) to enhance terrorism response and 
                mitigation capabilities if such an attack 
                occurs.
          (2) Threats to be considered in determining essential 
        capabilities.--
                  (A) In general.--In reporting to the 
                Secretary on its recommendations for essential 
                capabilities, the Task Force specifically shall 
                consider the critical infrastructure sectors 
                described in section 1802(c)(2), and the 
                threats to populations in all areas of the 
                Nation, urban and rural, including the 
                following:
                          (i) Biological threats.
                          (ii) Nuclear threats.
                          (iii) Radiological threats.
                          (iv) Incendiary threats.
                          (v) Chemical threats.
                          (vi) Explosives.
                          (vii) Suicide bombers.
                          (viii) Cyber threats.
                          (ix) Any other threats based on 
                        proximity to specific past acts of 
                        terrorism or the known activity of any 
                        terrorist group.
                  (B) No priority.--The order in which the 
                threats are listed in subparagraph (A) shall 
                not be construed as an order of priority for 
                consideration of the importance of such 
                threats.
          (3) Risk-based.--The draft report shall be based upon 
        the most current risk assessment available by the 
        Directorate for Information Analysis and Infrastructure 
        Protection of the threats of terrorism against the 
        United States provided to the Task Force pursuant to 
        subsection (d).
          (4) Contents.--The draft report shall--
                  (A) include a priority ranking of essential 
                capabilities, in order to provide guidance to 
                the Secretary and to the Congress on 
                determining the appropriate allocation of, and 
                funding levels for, first responder needs;
                  (B) set forth a methodology by which any 
                State or local government will be able to 
                determine the extent to which it possesses or 
                has access to the essential capabilities that 
                States and local governments having similar 
                risks should obtain;
                  (C) describe the availability of national 
                voluntary consensus standards, and whether 
                there is a need for new national voluntary 
                consensus standards, with respect to first 
                responder training and equipment;
                  (D) include such additional matters as the 
                Secretary may specify in order to further the 
                terrorism preparedness capabilities of first 
                responders; and
                  (E) include such revisions to the contents of 
                past reports as are necessary to take into 
                account changes in the most current risk 
                assessment available by the Directorate for 
                Information Analysis and Infrastructure 
                Protection or other relevant information as 
                determined by the Secretary.
  (c) Review and Revision of Draft Report.--
          (1) Review and comments.--Within 30 days after the 
        date of the submission of the draft report by the Task 
        Force under subsection (b), the Secretary shall review 
        and provide comments to the Task Force on the contents 
        of the draft report.
          (2) Revision and submission of final report.--Within 
        30 days after receiving the Secretary's comments, the 
        Task Force shall--
                  (A) revise its draft report based on the 
                comments provided by the Secretary, and any 
                other comments it has solicited and received, 
                if the Task Force determines that such 
                revisions are appropriate; and
                  (B) submit the final report on essential 
                capabilities to the Secretary and to the 
                Congress.
  (d) Task Force Access to Information.--
          (1) Security clearances.--For purposes of carrying 
        out its responsibilities under this section, the Task 
        Force shall be provided as a matter of priority 
        appropriate security clearances, including interim 
        security clearances.
          (2) Access to finished intelligence.--For purposes of 
        carrying out its responsibilities under this section, 
        the Task Force shall be provided access to all finished 
        intelligence and analytic products it may request from 
        the Directorate for Information Analysis and 
        Infrastructure Protection or other sources within the 
        Department concerning the nature and likelihood of 
        terrorist attacks on the territory of the United 
        States.
          (3) Access to assessment tools.--For purposes of 
        carrying out its responsibilities under this section, 
        the Task Force shall be provided access to all tools or 
        methodologies currently or formerly used by the 
        Department and its predecessor organizations to assess 
        the preparedness capabilities of State and local 
        governments.
          (4) Valid clearances.--Nothing in this section shall 
        be considered to authorize a member of the Task Force 
        to have access to classified information unless that 
        member possesses a valid clearance to receive such 
        information.
  (e) Membership.--
          (1) In general.--The Task Force shall consist of 25 
        members appointed by the Secretary, and shall--
                  (A) represent a cross section of first 
                responder disciplines; and
                  (B) include both State and local 
                representatives within each discipline.
          (2) Term of members.--Each appointed member of the 
        Task Force shall serve for a term not to exceed 18 
        months. No individual may be appointed as a member of 
        the Task Force for more than 2 terms.
          (3) Selection of members.--The Secretary shall 
        include in the membership of the Task Force--
                  (A) members selected from the emergency 
                response field, including firefighters and law 
                enforcement, hazardous materials response, 
                emergency medical services, and emergency 
                management personnel (including public works 
                personnel routinely engaged in emergency 
                response);
                  (B) health scientists, emergency and 
                inpatient medical providers, and public health 
                professionals, including experts in emergency 
                health care response to chemical, biological, 
                radiological, and nuclear terrorism, and 
                experts in providing mental health care during 
                emergency response operations;
                  (C) experts from Federal, State, and local 
                governments, and the private sector, 
                representing standards-setting organizations, 
                including representation from the voluntary 
                consensus codes and standards development 
                community, particularly those with expertise in 
                firefighting, law enforcement, and emergency 
                medical services delivery; and
                  (D) State and local officials with expertise 
                in terrorism preparedness, subject to the 
                condition that if any such officials are 
                elected officials, an equal number shall be 
                selected from each of the two major political 
                parties.
          (4) Ex officio members.--The Secretary shall 
        designate one or more officers of the Department to 
        serve as ex officio members of the Task Force, one of 
        whom shall be the designated officer of the Federal 
        Government for purposes of subsection (e) of section 10 
        of the Federal Advisory Committee Act.
          (5) Diversity in composition of task force.--In 
        appointing members to the Task Force, the Secretary 
        shall ensure, to the extent practicable, that its 
        membership--
                  (A) is geographically diverse;
                  (B) includes representatives from both rural 
                and urban jurisdictions;
                  (C) includes representatives from both 
                management and labor;
                  (D) includes representatives from both 
                uniformed and nonuniformed professions;
                  (E) includes representatives from both 
                voluntary and professional services;
                  (F) includes representatives from both 
                government and nongovernment emergency medical 
                services; and
                  (G) includes sufficient personnel with 
                security clearances necessary to review 
                classified materials that may be needed to 
                conduct the business of the Task Force.
          (6) Chair.--At the first meeting of the Task Force, 
        the membership of the Task Force appointed under 
        paragraph (3) shall elect a chair of the Task Force.
  (f) Meetings.--The Task Force shall meet as often as 
necessary to complete reports in accordance with this section.
  (g) Pay.--
          (1) In general.--Members of the Task Force shall 
        serve without pay by reason of their work on the Task 
        Force.
          (2) Federal officers and employees.--Members of the 
        Task Force who are officers or employees of the United 
        States shall receive no additional pay by reason of 
        their service as a member of the Task Force.
  (h) Travel Expenses.--Members of the Task Force shall be 
allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the Task Force.
  (i) Services, Funds, and Staff.--The Secretary shall provide 
to the Task Force, on a non-reimbursable basis, such 
administrative services, funds, staff, facilities, and other 
support services as the Secretary determines necessary, in 
consultation with the chair of the Task Force, for the Task 
Force to perform its duties efficiently and in accordance with 
this section.
  (j) Details.--Upon the request of the Task Force, the 
Secretary may detail, without reimbursement, any personnel of 
the Department to assist the Task Force in carrying out its 
duties. Any such detail of an employee shall be without 
interruption or loss of civil service status or privilege.
  (k) Applicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.), including 
subsections (a), (b), and (d) of section 10 of such Act, and 
section 552b(c) of title 5, United States Code, shall apply to 
the Task Force.

SEC. 1804. COVERED GRANT ELIGIBILITY AND CRITERIA.

  (a) Grant Eligibility.--Any State, region, or directly 
eligible tribe shall be eligible to apply for a covered grant.
  (b) Awarding Grants.--
          (1) Criteria.--In awarding covered grants, the 
        Secretary shall assist States and local governments in 
        achieving the essential capabilities for first 
        responders established by the Secretary under section 
        1802.
          (2) Threat assessments.--In assessing threats for 
        purposes of awarding covered grants, the credibility of 
        the threat shall be weighted more than population 
        concentration or critical infrastructure or any other 
        consideration.
  (c) State Homeland Security Plans.--
          (1) Submission of plans.--The Secretary shall require 
        that any State applying to the Secretary for a covered 
        grant must submit to the Secretary a 3-year State 
        homeland security plan that--
                  (A) demonstrates the extent to which the 
                State has achieved the essential capabilities 
                that apply to the State, and describes the 
                extent to which the State used the methodology 
                developed pursuant to section 1803(b)(4)(B) to 
                evaluate the level of its essential 
                capabilities;
                  (B) demonstrates the additional needs of the 
                State necessary to achieve the essential 
                capabilities that apply to the State;
                  (C) includes a prioritization of such 
                additional needs based on threat, 
                vulnerability, and consequence assessment 
                factors applicable to the State;
                  (D) describes how the State intends--
                          (i) to address such additional needs 
                        at the city, county, regional, State, 
                        and interstate level, and with respect 
                        to any Indian tribes within its 
                        boundaries;
                          (ii) to use all Federal, State, and 
                        local resources available for the 
                        purpose of addressing such additional 
                        needs; and
                          (iii) to give particular emphasis to 
                        regional planning and cooperation, both 
                        within its jurisdictional borders and 
                        with neighboring States; and
                  (E) is developed in consultation with and 
                subject to appropriate comment by local 
                governments within the State.
          (2) Approval by secretary.--The Secretary may not 
        award any covered grant to a State unless the Secretary 
        has approved the applicable State homeland security 
        plan.
  (d) Consistency With State Plans.--The Secretary shall ensure 
that each covered grant is used to supplement and support, in a 
consistent and coordinated manner, the applicable State 
homeland security plan or plans.
  (e) Application for Grant.--
          (1) In general.--Any State, region, or directly 
        eligible tribe may apply for a covered grant by 
        submitting to the Secretary an application at such 
        time, in such manner, and containing such information 
        as is required under this subsection, or as the 
        Secretary may reasonably require.
          (2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted to 
        the Secretary no later than February 15 of the fiscal 
        year for which they are submitted. The Secretary shall 
        award covered grants pursuant to all approved 
        applications for such fiscal year as soon as 
        practicable, but not later than July 31 of such year.
          (3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall 
        be available for obligation through the end of the 
        subsequent fiscal year.
          (4) Minimum contents of application.--The Secretary 
        shall require that each applicant include in its 
        application, at a minimum--
                  (A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the 
                applicant needs the covered grant to meet the 
                essential capabilities for terrorism 
                preparedness within the boundaries of the 
                State, region, or directly eligible tribe to 
                which the application pertains;
                  (B) a description of how, by reference to the 
                applicable State homeland security plan or 
                plans under subsection (c), the allocation of 
                grant funding proposed in the application, 
                including, where applicable, the amount not 
                passed through under section 1805(e)(1), would 
                assist in fulfilling the essential capabilities 
                specified in such plan or plans;
                  (C) a statement of whether a mutual aid 
                agreement applies to the use of all or any 
                portion of the covered grant funds;
                  (D) if the applicant is a region--
                          (i) a precise geographical 
                        description of the region and a 
                        specification of all participating and 
                        nonparticipating local governments 
                        within the geographical area comprising 
                        that region;
                          (ii) a specification of what 
                        governmental entity within the region 
                        will administer the expenditure of 
                        funds under the covered grant; and
                          (iii) a designation of a specific 
                        individual to serve as regional 
                        liaison;
                  (E) if the applicant is a directly eligible 
                tribe, a designation of a specific individual 
                to serve as tribal liaison;
                  (F) a capital budget showing how the 
                applicant intends to allocate and expend the 
                covered grant funds; and
                  (G) a statement of how the applicant intends 
                to meet the matching requirement, if any, that 
                applies under section 1805(e)(2).
          (5) Regional applications.--
                  (A) Submission to state or states.--To ensure 
                the consistency required under subsection (d), 
                an applicant that is a region must 
                simultaneously submit its application to the 
                Department and to each State of which any part 
                is included in the region.
                  (B) Opportunity for state comment.--Before 
                awarding any covered grant to a region, the 
                Secretary shall provide an opportunity to each 
                State of which any part is included in a 
                region, during the 30-day period beginning on 
                the date on which the region submits an 
                application for a covered grant, to comment to 
                the Secretary on the consistency of the 
                region's plan with the State's homeland 
                security plan.
                  (C) Final authority.--The Secretary shall 
                have final authority to determine the 
                consistency of any regional application with 
                the applicable State homeland security plan or 
                plans and approve any regional application. The 
                Secretary shall notify each State of which any 
                part is included in a region of the approval of 
                a regional application for that region.
                  (D) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(D)(iii) shall--
                          (i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        within the region concerning terrorism 
                        preparedness;
                          (ii) develop a process for receiving 
                        input from Federal, State, local, 
                        regional, and private sector officials 
                        within the region to assist in the 
                        development of the regional application 
                        and to improve the region'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 state or states.--To ensure 
                the consistency required under subsection (d), 
                an applicant that is a directly eligible tribe 
                must simultaneously submit its application to 
                the Department and to each State within the 
                boundaries of which any part of that tribe is 
                located.
                  (B) Opportunity for state comment.--Before 
                awarding any covered grant to a directly 
                eligible tribe, the Secretary shall provide an 
                opportunity to each State within the boundaries 
                of which any part of that tribe is located, 
                during the 30-day period beginning on the date 
                on which the tribe submits an application for a 
                covered grant, to comment to the Secretary on 
                the consistency of the tribe's plan with the 
                State's homeland security plan.
                  (C) Final authority.--The Secretary shall 
                have final authority to determine the 
                consistency of any application of a directly 
                eligible tribe with the applicable State 
                homeland security plan or plans and approve any 
                application of that tribe. The Secretary shall 
                notify each State within the boundaries of 
                which any part of that tribe is located of the 
                approval of an application of that tribe.
                  (D) Tribal liaison.--A tribal liaison 
                designated under paragraph (4)(E) shall--
                          (i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        concerning 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 that 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 that tribe.
                  (E) Limitation on number of direct grants.--
                The Secretary may make covered grants directly 
                to not more than 20 directly eligible tribes 
                per fiscal year.
                  (F) Tribes not receiving direct grants.--An 
                Indian tribe not receiving 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 that 
                tribe is located, consistent with the homeland 
                security plan of the State as described in 
                subsection (c). If a State fails to comply with 
                section 1805(e)(1), the tribe is entitled to 
                pursue the procedures set forth in section 
                1805(f)(3) to the extent applicable.
          (7) Equipment standards.--If an applicant for a 
        covered grant proposes to upgrade or purchase, with 
        assistance provided under the grant, new equipment or 
        systems that do not meet or exceed any applicable 
        national voluntary consensus standards established by 
        the Secretary under section 1806(a), the applicant 
        shall include in the application an explanation of why 
        such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or 
        exceed such standards.
  (f) First Responder Grants Board.--
          (1) Establishment of board.--The Secretary shall 
        establish a First Responder Grants Board, consisting 
        of--
                  (A) the Secretary;
                  (B) the Under Secretary for Emergency 
                Preparedness and Response;
                  (C) the Under Secretary for Border and 
                Transportation Security;
                  (D) the Under Secretary for Information 
                Analysis and Infrastructure Protection;
                  (E) the Under Secretary for Science and 
                Technology; and
                  (F) the Director of the Office for Domestic 
                Preparedness.
          (2) Chairman.--
                  (A) In general.--The Secretary shall be the 
                Chairman of the Board.
                  (B) Exercise of authorities by deputy 
                secretary.--The Deputy Secretary of Homeland 
                Security may exercise the authorities of the 
                Chairman, if the Secretary so directs.
          (3) Ranking of grant applications.--
                  (A) Prioritization of grants.--The Board 
                shall evaluate and annually prioritize all 
                pending applications for covered grants based 
                upon the degree to which they would lessen the 
                threat to, vulnerability of, and consequences 
                for persons and critical infrastructure.
                  (B) Achieving nationwide capability.--In 
                evaluating and prioritizing grant applications 
                under subparagraph (A), the Board shall seek to 
                achieve and enhance essential capabilities 
                throughout the Nation.
                  (C) Minimum amounts.--After evaluating and 
                prioritizing grant applications under 
                subparagraph (A), the Board shall ensure that, 
                for each fiscal year--
                          (i) the States, the District of 
                        Columbia, and the Commonwealth of 
                        Puerto Rico each receive 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 in accordance with the 
                        prioritization of additional needs 
                        under subsection (c)(1)(C);
                          (ii) the United States Virgin 
                        Islands, America Samoa, Guam, and the 
                        Northern Mariana Islands each receive 
                        no less than 0.08 percent of the funds 
                        available for covered grants for that 
                        fiscal year for purposes of 
                        implementing its homeland security plan 
                        in accordance with the prioritization 
                        of additional needs under subsection 
                        (c)(1)(C); and
                          (iii) directly eligible tribes under 
                        section 1807(8) collectively receive no 
                        less than 0.25 percent of the funds 
                        available for covered grants for that 
                        fiscal year for purposes of addressing 
                        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.
          (4) Functions of under secretaries.--The Under 
        Secretaries referred to in paragraph (1) shall seek to 
        ensure that the relevant expertise and input of the 
        staff of their directorates are available to and 
        considered by the Board.

SEC. 1805. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

  (a) In General.--A covered grant may be used for--
          (1) purchasing or upgrading equipment, including 
        computer software, to enhance terrorism preparedness 
        and response;
          (2) exercises to strengthen terrorism preparedness 
        and response;
          (3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving 
        weapons of mass destruction, including training in the 
        use of equipment and computer software;
          (4) developing or updating response plans;
          (5) establishing or enhancing mechanisms for sharing 
        terrorism threat information pursuant to this Act;
          (6) systems architecture and engineering, program 
        planning and management, strategy formulation and 
        strategic planning, life-cycle systems design, product 
        and technology evaluation, and prototype development 
        for terrorism preparedness and response purposes;
          (7) additional personnel costs resulting from--
                  (A) elevations in the threat alert level of 
                the Homeland Security Advisory System;
                  (B) travel to and participation in exercises 
                and training in the use of equipment and on 
                prevention activities; and
                  (C) the temporary replacement of personnel 
                during any period of travel to and 
                participation in exercises and training in the 
                use of equipment and on prevention activities;
          (8) the costs of equipment (including software) 
        required to receive, transmit, handle, and store 
        classified information;
          (9) enhancing facilities to serve as operations 
        centers, or hardening critical infrastructure against 
        potential attack by the addition of barriers, fences, 
        gates, and other such devices;
          (10) the costs of commercially available equipment 
        that complies with, where applicable, national 
        voluntary consensus standards, and that facilitates 
        interoperability, coordination, and integration between 
        emergency communications systems, including--
                  (A) mobile vehicles that contain equipment 
                such as commercial telephone trunk lines, VHF 
                and UHF radios, patch panels, and crosspatches, 
                among other technologies and equipment; and
                  (B) communications system overlay software 
                and hardware that allow multiple disparate 
                communications networks to act as one network;
          (11) educational curricula development for first 
        responders to ensure that they are prepared for 
        terrorist attacks;
          (12) training and exercises to assist public 
        elementary and secondary schools in developing and 
        implementing programs to instruct students regarding 
        age-appropriate skills to prepare for and respond to an 
        act of terrorism; and
          (13) other appropriate activities as determined by 
        the Secretary.
  (b) Prohibited Uses.--Funds provided as a covered grant may 
not be used--
          (1) to supplant State or local funds for, or 
        otherwise support, traditional missions of State and 
        local law enforcement, firefighters, emergency medical 
        services, or public health agencies, unless such 
        support serves a dual purpose and the funds are 
        primarily intended to enhance terrorism preparedness;
          (2) to acquire land; or
          (3) for any State or local government cost sharing 
        contribution.
  (c) Assistance Requirement.--The Secretary may not request 
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, regions, and localities, 
unless the Secretary undertakes to pay the costs directly 
attributable to transporting and operating such equipment 
during such response.
  (d) Flexibility in Unspent Homeland Security 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 determines that such transfer is in the interests of 
homeland security.
  (e) State, Regional, and Tribal Responsibilities.--
          (1) Pass-through.--The Secretary shall require a 
        recipient of a covered grant that is a State to 
        obligate or otherwise make available to local 
        governments, first responders, and other local groups, 
        to the extent required under the State homeland 
        security 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 beginning 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 covered 
                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 enactment 
                of this section shall be 100 percent.
                  (C) In-kind matching.--Each recipient of a 
                covered grant may meet the matching requirement 
                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 distribution 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) Annual report on homeland security spending.--
        Each recipient of a covered grant shall submit a report 
        to the Secretary not later than 60 days after the end 
        of each fiscal 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 
        region. Each recipient of a covered grant that is a 
        directly eligible tribe must simultaneously submits 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 disbursements 
                of all such funds expended in compliance with 
                paragraph (1) or pursuant to mutual aid 
                agreements or other sharing arrangements that 
                apply within the State, region, or directly 
                eligible tribe, as applicable, during the 
                previous fiscal year.
                  (C) How the funds were utilized by each 
                ultimate recipient or beneficiary during the 
                preceding fiscal year.
                  (D) The extent to which essential 
                capabilities identified in the applicable State 
                homeland security plan or plans were achieved 
                or enhanced as the result of the expenditure of 
                grant funds during the preceding fiscal year.
                  (E) The extent to which essential 
                capabilities identified in the applicable State 
                homeland security plan or plans remain unmet.
          (5) Inclusion of restricted annexes.--A recipient of 
        a covered grant may submit to the Secretary an annex to 
        the report under paragraph (4) that is subject to 
        appropriate handling restrictions, if the recipient 
        believes that discussion in the report of unmet needs 
        would reveal sensitive but unclassified information.
          (6) Provision of reports.--The Secretary shall ensure 
        that each report under paragraph (4) is provided to the 
        Under Secretary for Emergency Preparedness and Response 
        and the Director of the Office for Domestic 
        Preparedness.
  (f) Incentives to Efficient Administration of Homeland 
Security Grants.--
          (1) Penalties for delay in passing through local 
        share.--If a recipient of a covered grant that is a 
        State fails to pass through to local governments, first 
        responders, and other local groups funds or resources 
        required by subsection (e)(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 
                subsection (e)(1);
                  (B) terminate payment of funds under the 
                grant to the recipient, and transfer the 
                appropriate portion of those funds directly to 
                local first responders that were intended to 
                receive funding under that grant; or
                  (C) impose additional restrictions or burdens 
                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 subsection (e)(1); 
                        or
                          (iii) for each day that the grant 
                        recipient fails to pass through funds 
                        or resources in accordance with 
                        subsection (e)(1), reducing grant 
                        payments to the grant recipient from 
                        the portion of grant funds that is not 
                        required to be passed through under 
                        subsection (e)(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 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 detrimental impact on such 
        entities' terrorism preparedness 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 
                        enhancements to its terrorism 
                        preparedness as described in any 
                        applicable State homeland security plan 
                        or plans;
                          (ii) the State has failed to pass 
                        through funds or resources in 
                        accordance with subsection (e)(1); and
                          (iii) the local government complies 
                        with subparagraphs (B) and (C).
                  (B) Showing required.--To receive a payment 
                under this paragraph, a local government must 
                demonstrate that--
                          (i) it is identified explicitly as an 
                        ultimate 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 identified 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 (e)(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 
                        paragraph; and
                          (ii) shall not prejudice 
                        consideration of a request for payment 
                        under this paragraph that is submitted 
                        by another local government.
                  (D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each 
                request for payment under this paragraph by not 
                later than 15 days after the date the request 
                is received by the Department.
  (g) Reports to Congress.--The Secretary shall submit an 
annual report to the Congress by December 31 of each year--
          (1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each 
        State and region in the preceding fiscal year;
          (2) containing information on the use of such grant 
        funds by grantees; and
          (3) describing, on a nationwide and State-by-State 
        basis--
                  (A) the extent to which essential 
                capabilities identified in applicable State 
                homeland security plan or plans were created or 
                enhanced as the result of the expenditure of 
                covered grant funds during the preceding fiscal 
                year;
                  (B) the extent to which essential 
                capabilities identified in applicable State 
                homeland security plan or plans remain unmet; 
                and
                  (C) an estimate of the amount of Federal, 
                State, and local expenditures required to 
                attain across the United States the essential 
                capabilities established under section 1802(a).

SEC. 1806. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  (a) Equipment Standards.--
          (1) In general.--The Secretary, in consultation with 
        the Under Secretary for Science and Technology and the 
        Director of the Office for Domestic Preparedness, 
        shall, not later than 6 months after the date of 
        enactment of this section, support the development of, 
        promulgate, and update as necessary national voluntary 
        consensus standards for the performance, use, and 
        validation of first responder equipment for purposes of 
        section 1804(e)(7). Such standards--
                  (A) shall be, to the maximum extent 
                practicable, consistent with any existing 
                voluntary consensus standards;
                  (B) shall take into account, as appropriate, 
                new types of terrorism threats that may not 
                have been contemplated when such existing 
                standards were developed; and
                  (C) shall be focused on maximizing 
                interoperability, interchangeability, 
                durability, flexibility, efficiency, efficacy, 
                portability, sustainability, and safety.
          (2) Required categories.--In carrying out paragraph 
        (1), the Secretary shall specifically consider the 
        following categories of first responder equipment:
                  (A) Thermal imaging equipment.
                  (B) Radiation detection and analysis 
                equipment.
                  (C) Biological detection and analysis 
                equipment.
                  (D) Chemical detection and analysis 
                equipment.
                  (E) Decontamination and sterilization 
                equipment.
                  (F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other 
                protective clothing.
                  (G) Respiratory protection equipment.
                  (H) Interoperable communications, including 
                wireless and wireline voice, video, and data 
                networks.
                  (I) Explosive mitigation devices and 
                explosive detection and analysis equipment.
                  (J) Containment vessels.
                  (K) Contaminant-resistant vehicles.
                  (L) Such other equipment for which the 
                Secretary determines that national voluntary 
                consensus standards would be appropriate.
  (b) Training Standards.--
          (1) In general.--The Secretary, in consultation with 
        the Under Secretaries for Emergency Preparedness and 
        Response and Science and Technology and the Director of 
        the Office for Domestic Preparedness, shall support the 
        development of, promulgate, and regularly update as 
        necessary national voluntary consensus standards for 
        first responder training carried out with amounts 
        provided under covered grant programs, that will enable 
        State and local government first responders to achieve 
        optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to 
        providing training to--
                  (A) enable first responders to prevent, 
                prepare for, respond to, and mitigate terrorist 
                threats, including threats from chemical, 
                biological, nuclear, and radiological weapons 
                and explosive devices capable of inflicting 
                significant human casualties; and
                  (B) familiarize first responders with the 
                proper use of equipment, including software, 
                developed pursuant to the standards established 
                under subsection (a).
          (2) Required categories.--In carrying out paragraph 
        (1), the Secretary specifically shall include the 
        following categories of first responder activities:
                  (A) Regional planning.
                  (B) Joint exercises.
                  (C) Intelligence collection, analysis, and 
                sharing.
                  (D) Emergency notification of affected 
                populations.
                  (E) Detection of biological, nuclear, 
                radiological, and chemical weapons of mass 
                destruction.
                  (F) Such other activities for which the 
                Secretary determines that national voluntary 
                consensus training standards would be 
                appropriate.
  (c) Consultation With Standards Organizations.--In 
establishing national voluntary consensus standards for first 
responder equipment and training under this section, the 
Secretary shall consult with relevant public and private sector 
groups, including--
          (1) the National Institute of Standards and 
        Technology;
          (2) the National Fire Protection Association;
          (3) the National Association of County and City 
        Health Officials;
          (4) the Association of State and Territorial Health 
        Officials;
          (5) the American National Standards Institute;
          (6) the National Institute of Justice;
          (7) the Inter-Agency Board for Equipment 
        Standardization and Interoperability;
          (8) the National Public Health Performance Standards 
        Program;
          (9) the National Institute for Occupational Safety 
        and Health;
          (10) ASTM International;
          (11) the International Safety Equipment Association 
        (ISEA); and
          (12) to the extent the Secretary considers 
        appropriate, other national voluntary consensus 
        standards development organizations, other interested 
        Federal, State, and local agencies, and other 
        interested persons.

SEC. 1807. DEFINITIONS.

  In this title:
          (1) Board.--The term ``Board'' means the First 
        Responder Grants Board established under section 
        1804(f).
          (2) Covered grant.--The term ``covered grant'' means 
        any grant to which this title applies under section 
        1801.
          (3) Elevations in the threat alert level.--The term 
        ``elevations in the threat alert level'' means any 
        designation (including those that are less than 
        national in scope) that raises the homeland security 
        threat level to either the highest or second highest 
        threat level under the Homeland Security Advisory 
        System referred to in section 201(d)(7).
          (4) Essential capabilities.--The term ``essential 
        capabilities'' means the levels, availability, and 
        competence of emergency personnel, planning, training, 
        and equipment across a variety of disciplines needed to 
        effectively and efficiently prevent, prepare for, and 
        respond to acts of terrorism consistent with 
        established practices.
          (5) Region.--The term ``region'' means--
                  (A) any geographic area consisting of all or 
                parts of 2 or more contiguous States, counties, 
                municipalities, or other local governments that 
                have a combined population of at least 
                1,650,000 or have an area of not less than 
                20,000 square miles, and that, for purposes of 
                an application for a covered grant, is 
                represented by 1 or more governments or 
                governmental agencies within such geographic 
                area, and that is established by law or by 
                agreement of 2 or more such governments or 
                governmental agencies in a mutual aid 
                agreement; or
                  (B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a 
                mutual aid agreement) that is formally 
                certified by the Secretary as a region for 
                purposes of this Act with the consent of--
                          (i) the State or States in which they 
                        are located, including a multi-State 
                        entity established by a compact between 
                        two or more States; and
                          (ii) the incorporated municipalities, 
                        counties, and parishes which they 
                        encompass.
          (6) Task force.--The term ``Task Force'' means the 
        Task Force on Essential Capabilities for First 
        Responders established under section 1803.
          (7) First responder.--The term ``first responder'' 
        shall have the same meaning as the term ``emergency 
        response provider''.
          (8) Directly eligible tribe.--The term ``directly 
        eligible tribe'' means any Indian tribe or consortium 
        of Indian tribes that--
                  (A) meets the criteria to participate in 
                Self-Governance set forth in section 402(c) of 
                the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 458bb(c));
                  (B) employs at least 10 full-time personnel 
                in a law enforcement or emergency response 
                agency with the capacity to respond to calls 
                for law enforcement or emergency services; and
                  (C)(i) is located on, or within 5 miles of, 
                an international border or waterway;
                  (ii) is located within 5 miles of a facility 
                within a critical infrastructure sector 
                identified in section 1802(c)(2);
                  (iii) is located within or contiguous to one 
                of the 50 largest metropolitan statistical 
                areas; or
                  (iv) has more than 1,000 square miles of 
                Indian country, as described in section 1151 of 
                title 18, United States Code.

 TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT ORGANIZATIONS

SEC. 1901. DEFINITIONS.

   In this title:
          (1) Contract.--The term ``contract'' means a contract 
        between the Federal Government and a contractor 
        selected from the list of certified contractors to 
        perform security enhancements or provide technical 
        assistance approved by the Secretary under this title.
          (2) Favorable repayment terms.--The term ``favorable 
        repayment terms'' means the repayment terms of loans 
        offered to nonprofit organizations under this title 
        that--
                  (A) are determined by the Secretary, in 
                consultation with the Secretary of the 
                Treasury, to be favorable under current market 
                conditions;
                  (B) have interest rates at least 1 full 
                percentage point below the market rate; and
                  (C) provide for repayment over a term not 
                less than 25 years.
          (3) Nonprofit organization.--The term ``nonprofit 
        organization'' means an organization that--
                  (A) is described under section 501(c)(3) of 
                the Internal Revenue Code of 1986 and exempt 
                from taxation under section 501(a) of such 
                Code; and
                  (B) is designated by the Secretary under 
                section 1903(a).
          (4) Security enhancements.--The term ``security 
        enhancements''--
                  (A) means the purchase and installation of 
                security equipment in real property (including 
                buildings and improvements), owned or leased by 
                a nonprofit organization, specifically in 
                response to the risk of attack at a nonprofit 
                organization by an international terrorist 
                organization;
                  (B) includes software security measures; and
                  (C) does not include enhancements that would 
                otherwise have been reasonably necessary due to 
                nonterrorist threats.
          (5) Technical assistance.--The term ``technical 
        assistance''--
                  (A) means guidance, assessment, 
                recommendations, and any other provision of 
                information or expertise which assists 
                nonprofit organizations in--
                          (i) identifying security needs;
                          (ii) purchasing and installing 
                        security enhancements;
                          (iii) training employees to use and 
                        maintain security enhancements; or
                          (iv) training employees to recognize 
                        and respond to international terrorist 
                        threats; and
                  (B) does not include technical assistance 
                that would otherwise have been reasonably 
                necessary due to nonterrorist threats.

SEC. 1902. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
                    GUARANTEES.

  (a) In General.--The Secretary may--
          (1) enter into contracts with certified contractors 
        for security enhancements and technical assistance for 
        nonprofit organizations; and
          (2) issue Federal loan guarantees to financial 
        institutions in connection with loans made by such 
        institutions to nonprofit organizations for security 
        enhancements and technical assistance.
  (b) Loans.--The Secretary may guarantee loans under this 
title--
          (1) only to the extent provided for in advance by 
        appropriations Acts; and
          (2) only to the extent such loans have favorable 
        repayment terms.

SEC. 1903. ELIGIBILITY CRITERIA.

  (a) In General.--The Secretary shall designate nonprofit 
organizations as high-risk nonprofit organizations eligible for 
contracts or loans under this title based on the vulnerability 
of the specific site of the nonprofit organization to 
international terrorist attacks.
  (b) Vulnerability Determination.--In determining 
vulnerability to international terrorist attacks and 
eligibility for security enhancements or technical assistance 
under this title, the Secretary shall consider--
          (1) threats of international terrorist organizations 
        (as designated by the State Department) against any 
        group of United States citizens who operate or are the 
        principal beneficiaries or users of the nonprofit 
        organization;
          (2) prior attacks, within or outside the United 
        States, by international terrorist organizations 
        against the nonprofit organization or entities 
        associated with or similarly situated as the nonprofit 
        organization;
          (3) the symbolic value of the site as a highly 
        recognized United States cultural or historical 
        institution that renders the site a possible target of 
        international terrorism;
          (4) the role of the nonprofit organization in 
        responding to international terrorist attacks; and
          (5) any recommendations of the applicable State 
        Homeland Security Authority established under section 
        1906 or Federal, State, and local law enforcement 
        authorities.
  (c) Documentation.--In order to be eligible for security 
enhancements, technical assistance or loan guarantees under 
this title, the nonprofit organization shall provide the 
Secretary with documentation that--
          (1) the nonprofit organization hosted a gathering of 
        at least 100 or more persons at least once each month 
        at the nonprofit organization site during the preceding 
        12 months; or
          (2) the nonprofit organization provides services to 
        at least 500 persons each year at the nonprofit 
        organization site.
  (d) Technical Assistance Organizations.--If 2 or more 
nonprofit organizations establish another nonprofit 
organization to provide technical assistance, that established 
organization shall be eligible to receive security enhancements 
and technical assistance under this title based upon the 
collective risk of the nonprofit organizations it serves.

SEC. 1904. USE OF LOAN GUARANTEES.

  Funds borrowed from lending institutions, which are 
guaranteed by the Federal Government under this title, may be 
used for technical assistance and security enhancements.

SEC. 1905. NONPROFIT ORGANIZATION APPLICATIONS.

  (a) In General.--A nonprofit organization desiring assistance 
under this title shall submit a separate application for each 
specific site needing security enhancements or technical 
assistance.
  (b) Content.--Each application shall include--
          (1) a detailed request for security enhancements and 
        technical assistance, from a list of approved 
        enhancements and assistance issued by the Secretary 
        under this title;
          (2) a description of the intended uses of funds to be 
        borrowed under Federal loan guarantees; and
          (3) such other information as the Secretary shall 
        require.
  (c) Joint Application.--Two or more nonprofit organizations 
located on contiguous sites may submit a joint application.

SEC. 1906. REVIEW BY STATE HOMELAND SECURITY AUTHORITIES.

  (a) Establishment of State Homeland Security Authorities.--In 
accordance with regulations prescribed by the Secretary, each 
State may establish a State Homeland Security Authority to 
carry out this title.
  (b) Applications.--
          (1) Submission.--Applications shall be submitted to 
        the applicable State Homeland Security Authority.
          (2) Evaluation.--After consultation with Federal, 
        State, and local law enforcement authorities, the State 
        Homeland Security Authority shall evaluate all 
        applications using the criteria under section 1903 and 
        transmit all qualifying applications to the Secretary 
        ranked by severity of risk of international terrorist 
        attack.
          (3) Appeal.--An applicant may appeal the finding that 
        an application is not a qualifying application to the 
        Secretary under procedures that the Secretary shall 
        issue by regulation not later than 90 days after the 
        date of enactment of this title.

SEC. 1907. SECURITY ENHANCEMENT AND TECHNICAL ASSISTANCE CONTRACTS AND 
                    LOAN GUARANTEES.

  (a) In General.--Upon receipt of the applications, the 
Secretary shall select applications for execution of security 
enhancement and technical assistance contracts, or issuance of 
loan guarantees, giving preference to the nonprofit 
organizations determined to be at greatest risk of 
international terrorist attack based on criteria under section 
1903.
  (b) Security Enhancements and Technical Assistance; Followed 
by Loan Guarantees.--The Secretary shall execute security 
enhancement and technical assistance contracts for the highest 
priority applicants until available funds are expended, after 
which loan guarantees shall be made available for additional 
applicants determined to be at high risk, up to the authorized 
amount of loan guarantees. The Secretary may provide with 
respect to a single application a combination of such contracts 
and loan guarantees.
  (c) Joint Applications.--Special preference shall be given to 
joint applications submitted on behalf of multiple nonprofit 
organizations located in contiguous settings.
  (d) Maximizing Available Funds.--Subject to subsection (b), 
the Secretary shall execute security enhancement and technical 
assistance contracts in such amounts as to maximize the number 
of high-risk applicants nationwide receiving assistance under 
this title.
  (e) Applicant Notification.--Upon selecting a nonprofit 
organization for assistance under this title, the Secretary 
shall notify the nonprofit organization that the Federal 
Government is prepared to enter into a contract with certified 
contractors to install specified security enhancements or 
provide specified technical assistance at the site of the 
nonprofit organization.
  (f) Certified Contractors.--
          (1) In general.--Upon receiving a notification under 
        subsection (e), the nonprofit organization shall select 
        a certified contractor to perform the specified 
        security enhancements, from a list of certified 
        contractors issued and maintained by the Secretary 
        under subsection (j).
          (2) List.--The list referred to in paragraph (1) 
        shall be comprised of contractors selected on the basis 
        of--
                  (A) technical expertise;
                  (B) performance record including quality and 
                timeliness of work performed;
                  (C) adequacy of employee criminal background 
                checks; and
                  (D) price competitiveness.
          (3) Other certified contractors.--The Secretary shall 
        include on the list of certified contractors additional 
        contractors selected by senior officials at State 
        Homeland Security Authorities and the chief executives 
        of county and other local jurisdictions. Such 
        additional certified contractors shall be selected on 
        the basis of the criteria under paragraph (2).
  (g) Ensuring the Availability of Contractors.--If the list of 
certified contractors under this section does not include any 
contractors who can begin work on the security enhancements or 
technical assistance within 60 days after applicant 
notification, the nonprofit organization may submit a 
contractor not currently on the list to the Secretary for the 
Secretary's review. If the Secretary does not include the 
submitted contractor on the list of certified contractors 
within 60 days after the submission and does not place an 
alternative contractor on the list within the same time period 
(who would be available to begin the specified work within that 
60-day period), the Secretary shall immediately place the 
submitted contractor on the list of certified contractors and 
such contractor shall remain on such list until--
          (1) the specified work is completed; or
          (2) the Secretary can show cause why such contractor 
        may not retain certification, with such determinations 
        subject to review by the Comptroller General of the 
        United States.
  (h) Contracts.--Upon selecting a certified contractor to 
provide security enhancements and technical assistance approved 
by the Secretary under this title, the nonprofit organization 
shall notify the Secretary of such selection. The Secretary 
shall deliver a contract to such contractor within 10 business 
days after such notification.
  (i) Contracts for Additional Work or Upgrades.--A nonprofit 
organization, using its own funds, may enter into an additional 
contract with the certified contractor, for additional or 
upgraded security enhancements or technical assistance. Such 
additional contracts shall be separate contracts between the 
nonprofit organization and the contractor.
  (j) Expediting Assistance.--In order to expedite assistance 
to nonprofit organizations, the Secretary shall--
          (1) compile a list of approved technical assistance 
        and security enhancement activities within 45 days 
        after the date of enactment of this title;
          (2) publish in the Federal Register within 60 days 
        after such date of enactment a request for contractors 
        to submit applications to be placed on the list of 
        certified contractors under this section;
          (3) after consultation with the Secretary of the 
        Treasury, publish in the Federal Register within 60 
        days after such date of enactment, prescribe 
        regulations setting forth the conditions under which 
        loan guarantees shall be issued under this title, 
        including application procedures, expeditious review of 
        applications, underwriting criteria, assignment of loan 
        guarantees, modifications, commercial validity, 
        defaults, and fees; and
          (4) publish in the Federal Register within 120 days 
        after such date of enactment (and every 30 days 
        thereafter) a list of certified contractors, including 
        those selected by State Homeland Security Authorities, 
        county, and local officials, with coverage of all 50 
        States, the District of Columbia, and the territories.

SEC. 1908. LOCAL LAW ENFORCEMENT ASSISTANCE GRANTS.

  (a) In General.--The Secretary may provide grants to units of 
local government to offset incremental costs associated with 
law enforcement in areas where there is a high concentration of 
nonprofit organizations.
  (b) Use.--Grant funds received under this section may be used 
only for personnel costs or for equipment needs specifically 
related to such incremental costs.
  (c) Maximization of Impact.--The Secretary shall award grants 
in such amounts as to maximize the impact of available funds in 
protecting nonprofit organizations nationwide from 
international terrorist attacks.

SEC. 1909. OFFICE OF COMMUNITY RELATIONS AND CIVIC AFFAIRS.

  (a) In General.--There is established within the Department, 
the Office of Community Relations and Civic Affairs to 
administer grant programs for nonprofit organizations and local 
law enforcement assistance.
  (b) Additional Responsibilities.--The Office of Community 
Relations and Civic Affairs shall--
          (1) coordinate community relations efforts of the 
        Department;
          (2) serve as the official liaison of the Secretary to 
        the nonprofit, human and social services, and faith-
        based communities; and
          (3) assist in coordinating the needs of those 
        communities with the Citizen Corps program.

SEC. 1910. AUTHORIZATION OF APPROPRIATIONS AND LOAN GUARANTEES.

  (a) Nonprofit Organizations Program.--There are authorized to 
be appropriated to the Department to carry out the nonprofit 
organization program under this title, $100,000,000 for fiscal 
year 2005 and such sums as may be necessary for fiscal years 
2006 and 2007.
  (b) Local Law Enforcement Assistance Grants.--There are 
authorized to be appropriated to the Department for local law 
enforcement assistance grants under section 1908, $50,000,000 
for fiscal year 2005 and such sums as may be necessary for 
fiscal years 2006 and 2007.
  (c) Office of Community Relations and Civic Affairs.--There 
are authorized to be appropriated to the Department for the 
Office of Community Relations and Civic Affairs under section 
1909, $5,000,000 for fiscal year 2005 and such sums as may be 
necessary for fiscal years 2006 and 2007.
  (d) Loan Guarantees.--
          (1) Authorization of appropriations.--There are 
        authorized to be appropriated in each of fiscal years 
        2005, 2006, and 2007, such amounts as may be required 
        under the Federal Credit Act with respect to Federal 
        loan guarantees authorized by this title, which shall 
        remain available until expended.
          (2) Limitation.--The aggregate value of all loans for 
        which loan guarantees are issued under this title by 
        the Secretary may not exceed $250,000,000 in each of 
        fiscal years 2005, 2006, and 2007.

                           Markup Transcript



                            BUSINESS MEETING

                        WEDNESDAY, JUNE 16, 2004

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:00 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [Chairman of the Committee] presiding.
    [Intervening business.]
    Chairman Sensenbrenner. Pursuant to notice, I now call up 
the bill, H.R. 3266, the ``Faster and Smarter Funding For First 
Responders Act of 2003,'' for purposes of markup and move its 
favorable recommendation to the House.
    [The Committee Print, showing the text of H.R. 3266 as 
reported by the Select Committee on Homeland Security, 
follows:]


    Without objection, the bill will be considered as read and 
open for amendment at any point, and the text as reported by 
the Select Committee on Homeland Security, which the Members 
have before them, will be considered as read, considered as the 
original text for purposes of amendment, and open for amendment 
at any point.
    The Chair recognizes himself for 5 minutes to explain the 
bill.
    This bill enables the Department of Homeland Security----
    Mr. Watt. Mr. Chairman, I am having trouble hearing you 
down here.
    Chairman Sensenbrenner. This bill enables the Department of 
Homeland Security to provide grants to States, local 
government, and first responders more effectively and 
efficiently. It was introduced on October 8 in response to 
complaints that funding was being ineffectively appropriated. 
Accordingly, this bill consolidates the State Homeland Security 
Grant Program and the Urban Areas Security Initiative Grant 
Program, which are both managed by the Office of Domestic 
Preparedness.
    Under the State Homeland Security Grant Program, money was 
distributed based upon a formula as provided by the PATRIOT 
Act, which gave 75 one-hundredths of 1 percent of the funding 
to each State and distributed the remainder based on 
population. The Urban Area Security Initiative Grant Program 
distributed funds based upon a formula that considered such 
factors as critical infrastructure, population density, and 
credible threat information.
    By consolidating these programs, the bill maximizes the 
capabilities of limited resources and grants funds based upon 
threats, vulnerabilities, and consequence assessments to the 
targeted terrorist threat that we recognize is always changing. 
The bill would increase needed funding for first responders and 
improve our Nation's ability to combat terrorism.
    The Chair would note that this Committee's referral of this 
legislation expires on June 21, and we have already been 
granted a previous extension by the leadership, so we have to 
get this done today.
    Who wishes to give the Democratic opening statement?
    The gentleman from Virginia, Mr. Scott.
    Mr. Scott. Thank you, Mr. Chairman. I am pleased you have 
scheduled this markup on H.R. 3266.
    The bill provides funds for first responders, the men and 
women who are putting themselves on the line every day to 
provide for our safety and security, and who would be the first 
people to respond to a terrorist act or threat.
    While there are concerns about the impact of the formula 
that has been proposed, it is clear that you have made a good 
effort in trying to ensure that every State has at least a 
little amount of money with which to provide for its security 
immediately, while reserving most of the funds for distribution 
based on actual threat assessments.
    Prevention and response for crisis and consequence 
management are the two primary responsibilities of first 
responders in their efforts to prevent acts of terrorism, 
whenever possible, and to address those that are not prevented. 
Any terrorist act will be local at the point of its impact, so 
focusing on strengthening the ability of first responders to 
prevent and respond to terrorist acts is the key to any 
effective antiterrorism effort.
    Arming our first responders with the best technologies, 
equipment, and training to react in the event of a catastrophic 
terrorist attack is extremely vital to the continued protection 
of our Nation. To this end, terrorist preparedness grants for 
first responders must be allocated quickly where the risk is 
the greatest.
    H.R. 3266 will significantly contribute to this ongoing 
effort, and we look forward to working with you, Mr. Chairman, 
and our colleagues on other Committees of jurisdiction to 
assure that these ends are actually met.
    I thank you, and I yield back.
    Chairman Sensenbrenner. Without objection, all Members' 
opening statements will be included in the record at this 
point.
    The Chair offers an amendment, and the clerk will report 
the amendment.
    [The amendment offered by Mr. Sensenbrenner follows:]
      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


    The Clerk. Amendment to H.R. 3266 offered by Sensenbrenner. 
In section 1801(a) of the Homeland Security Act of 2002 (as 
proposed to be added by section 2 of the bill), strike----
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read, and the Chair recognizes himself for 5 
minutes.
    I speak today in support of an amendment to H.R. 3266. The 
amendment would ensure that all States and territories are 
protected and that grants focus on threats, vulnerabilities, 
and consequence assessments for each State and locality.
    I would point out that I believe this to be a compromise 
between the existing law, which will end up staying in place if 
this bill is not enacted, meaning passed in the other body and 
signed by the President, and the original base bill, which does 
not contain a floor for any State or territory.
    The terrorists conspire against the United States and any 
and all of its citizens wherever they may reside. Just this 
week, a Somali immigrant was indicted for plotting to bomb a 
shopping center in America's heartland. The aim of terrorists 
is to kill and eliminate every aspect of our society. And if 
they cannot strike one area due to a buildup of defenses, they 
will strike another.
    While our defenses may focus more on the areas with greater 
threats, we cannot afford to ignore any part of our Nation. We 
must cover our heartland as well as our coastal cities. The 9/
11 attacks demonstrated that when one area of our Nation is 
attacked, the entire Nation is affected. Our relatives, friends 
and our national and local economies and our morale are harmed. 
The death grip of a terrorist attack that touches one State 
touches the Nation, and the Nation responded, as they did in 
the case of the Pentagon and Twin Towers attacks.
    Accordingly, this amendment gives each State a base level 
of funding so each State is equipped to fight terrorism. This 
amendment also recognizes that various locales face varying 
threat assessments and therefore allocates funds to areas based 
upon threats and vulnerabilities. These threats and 
vulnerabilities are forever changing and shifting. Our enemy is 
patient and will strike wherever and whenever possible.
    Finally, this amendment would ensure that Indian tribes and 
territories will receive adequate funding to combat terrorism. 
Terrorists do not recognize borders, and I have no doubt that 
they will strike where they can find a vulnerable spot in 
America's defenses. In an attempt to give all Americans the 
defenses necessary to protect themselves, I urge support of 
this amendment.
    And let me again reiterate the fact, the funding mechanism 
that is contained in the base bill is a tremendous improvement 
over the existing law. It consolidates grants. It allows for 
consolidated grant applications; that means less paperwork on 
the part of the localities and States that submit applications.
    However, if we get into a food fight over who can get more 
by changing the formula, this bill is not going to pass. The 
Chairman of the Appropriations Subcommittee in the House is 
adamant that there be a base minimum funding formula. The 
Senate represents States if States end up getting significantly 
reduced funding. We all know what happens over in the other 
body.
    So while the bill contains a no-State-minimum guarantee 
contrasted to the .75-percent-per-State-minimum guarantee, I 
would implore the Members to think when they are considering my 
amendment that making the perfect the enemy of the good will 
mean that the existing law stays on the books. I don't want to 
see that happen. I don't think many of my colleagues would like 
to see that happen, and please don't forget about that when we 
are dealing with this amendment.
    Ms. Waters. Would the gentleman yield?
    Chairman Sensenbrenner. I yield to the gentlewoman from 
California.
    Ms. Waters. Thank you very much, Mr. Chairman. And I would 
like to commend you for the work that you have done to try and 
bring before us a bill that we can all agree on.
    I just simply need to ask you, under the critical 
infrastructure sectors where you identify agriculture, banking 
and finance, chemical industries, et cetera, I see no mention 
of ports and containers. And I am very concerned about ports 
and containers. It seems to be the least secured part of our 
infrastructure. We still don't know whether or not we have the 
kind of technology to examine the containers that are coming to 
our ports, and I see no specific coverage.
    Chairman Sensenbrenner. If the gentlewoman would allow me 
to reclaim my time.
    This does not deal with the amendment. But once we are done 
with the amendment, I would ask that the appropriate parts of 
the bill be amended to include ports and containers, because I 
agree that there is a tremendous vulnerability there, and that 
should be considered in terms of threat assessments.
    Ms. Waters. Thank you very much, Mr. Chairman.
    Chairman Sensenbrenner. My time has expired.
    The gentleman from New York, Mr. Nadler.
    Mr. Nadler. I have a second degree amendment to your 
amendment at the desk, Nadler .095.
    [The amendment offered by Mr. Nadler follows:]
      
      

  


    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. Amendment to the Sensenbrenner amendment to H.R. 
3266 offered by Mr. Nadler, page 5, line 7, strike ``0.45 
percent'' and insert ``0.25 percent''.
    Mr. Nadler. I waive the reading of the amendment.
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read and the gentleman is recognized for 5 
minutes.
    Mr. Nadler. Mr. Chairman, I commend you for this amendment. 
I do think the structure in the amendment is a great 
improvement over the structure in the current law. It is 
essentially the same as the structure in the bill reported out 
by the Homeland Security Committee and much superior to the 
structure of the bill reported out by the other Committee on 
which I serve, which will remain nameless at the moment.
    And I agree with you that the enemy of the perfect is often 
the enemy of the good, and the perfect would be no State 
minimum, because this should be a risk-based bill. There are 
tremendous costs. My own city of New York is obviously a major 
target. The police department of New York City spent $200 
million in the last fiscal year alone on terrorism prevention. 
It is absurd when Wyoming receives $38 and change per person 
and New York gets $5 and change per person when New York is 
probably a more likely terrorist target than is Wyoming. And 
this bill goes in the right direction.
    I do believe, however, that what my amendment does would be 
to change it from .45 in your amendment to .25 percent as the 
minimum; .25 percent would give States a minimum that is 
approximately half of what they receive today. It is a 
logicalphased approach to moving away from a .0 system toward a 
system that more rationally distributes preparedness funds 
based on the actual risks faced by States and localities. This 
approach recognizes that every State needs something, but also 
recognizes that risk factors should carry more weight than the 
distribution of funds.
    Now why .25 percent? It is consistent with other 
counterterrorism grant programs that we have. The HRSA 
bioterrorism funds have a .24 percent minimum. The local law 
enforcement block grant program has a .25 percent minimum. 
These grants serve similar purposes, and no one is complaining 
that the minimums are too low. What is so different about the 
ODB terrorism preparedness funds that would lead Congress to 
allocate such a large minimum amount to each State when 
compared to the minimums in the other programs that I just 
mentioned?
    If States have a legitimate need for--legitimate need for 
funds above the .25 percent level, they can apply and be 
rewarded additional funds out of this program. Nothing prevents 
them from receiving the funds they need to address real threats 
based on risk. I urge the Committee to accept this amendment, 
to make the minimum .25 percent, which is consistent with other 
programs and would lead, I think, to a more rational 
distribution of the funds.
    I thank you and yield back.
    Chairman Sensenbrenner. The Chair will recognize himself in 
opposition, mildly, to the amendment.
    I commend the gentleman from New York to recognize that 
everybody ought to get some of this money. And you know, let me 
say that terrorists have got a very adept way of finding out 
where the weakest link and the greatest vulnerability is, and 
that means the entire country is at risk.
    Also, the purpose of terrorism strikes is to ruin the 
economy of the United States, which is the engine of our 
strength and the engine of both our economic freedom and our 
political freedom, both of which they hate. That means, I 
think, that no part of this country is exempt, and everybody 
should have at least some money if only for the purpose to have 
terrorism on the agenda and to provide better training and 
better equipment for first responders. We do not wish to have 
the first responders become the first victims of a terrorist 
strike, particularly a chemical or biological or radiological 
attack.
    I think this will facilitate the passage of this bill. I 
think the figure is still subject to negotiation of the 
gentleman's amendment. I am not going to support it, because I 
think .45 is more halfway between .75 and zero, but 
nonetheless, I am not going to trip over my shoelaces if the 
amendment is adopted.
    The gentleman from Florida.
    Mr. Keller. I move to strike the last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Keller. I am going to say something I never said in 4 
years here on this Committee, I 100 percent totally agree with 
Mr. Nadler and will be supporting this amendment.
    I don't think we should have any State minimums. I think we 
should go where the threat is. The idea that Vermont should get 
the same as Florida I think is silly.
    But I think the Chairman has a lot of wisdom, and we are 
going to get stuck with something. The Chairman has proposed 
.45, which is certainly an improvement over .75. I like 
Congressman Nadler's approach better because, if we went with 
the .45, that would be the floor to which we would start 
negotiations. And if we went with Nadler, I think .25 would be 
the floor, and we get closer to .45. I think the Nadler 
approach is a better way to go, and I urge my colleagues to 
adopt.
    Mr. Nadler. Once out of 4 years isn't so bad.
    Mr. Watt. I can't resist the temptation, I agree with the 
gentleman.
    Ms. Waters. Mr. Chairman?
    Chairman Sensenbrenner. The gentleman from New York, Mr. 
Weiner.
    Mr. Weiner. Thank you, Mr. Chairman. I want to thank you, 
Mr. Chairman, as always, fighting so hard to defend the 
jurisdiction of this Committee.
    I think much more so than the other Committees that have 
been involved, we have been focusing on this issue of trying a 
way to balance out the needs of various cities and localities. 
I agree with Mr. Keller that, fundamentally, you don't have 
mandatory minimums on this anymore than you would of 
agriculture funding or any other program. I think we should 
always strive to forward resources where they are needed most.
    I do, however, believe that none of us are going to be 
offering an amendment to have no minimum guarantee, because I 
fundamentally agree with your position that what we have to do 
now is to try to craft a compromise that gets us away from 
where we are today. We essentially began with a grant program 
that had minimum guarantees and little else. We then went back 
and, realizing when Wyoming was getting more per capita than 
New York and Florida combined, we were making a mistake. We 
created this high-threat urban area program. I think the name 
has changed a couple of times, and it is now the Urban Area 
Security Initiative.
    And then what we did is we allowed Homeland Security to 
expand that program to include the entire country; 50 cities 
and 30 transportation administrations are now eligible. And 
everyone is tripping over themselves to be declared high-threat 
urban areas even though, in many cases, they are not. What we 
are trying to do with the Sensenbrenner bill and the Cox bill 
to a large degree is to say, let us remember why we are in this 
business, which is to try and deal with threats.
    And I think the Cox bill and Mr. Sensenbrenner's bill, 
which mirrors it closely, goes a long way to doing that. I 
would remind my colleagues, it is absolutely true what the 
Chairman says, that there are potential threats looming out 
there. But we must not forget the idea that some localities, 
New York chief among them, don't need to worry about potential 
threats that have actually happened, not the successful ones 
but also the far less noticed unsuccessful ones.
    Commissioner Kelly, the police commissioner from our city, 
is fond of telling a story of Iyman Farris who, 2 years after 
the destruction of the World Trade Center, was in New York 
City, stayed at a hotel near Newark, he drove into Manhattan, 
ate at a Pakistani restaurant near City Hall and reported back 
to his handlers, quote, ``The weather is too hot.'' what did he 
mean? According to depositions and according to testimony, what 
he meant was he saw police cars located at each stanchion of 
the Brooklyn Bridge 24 hours a day, and their plans to blow up 
the Brooklyn bridge would have to wait.
    It is not hypothetical. It is not what could have been. It 
is a real actual threat. And I think that the Sensenbrenner 
bill goes a long way to recognizing that actual threat is what 
we should be focusing our attention on. And I think the Nadler 
amendment brings us to a point that, when we go into 
negotiations with the other Committees, unlike what happened in 
my other Committee, there is a realistic sense that we have to 
strike a compromise. And I want to commend Chairman 
Sensenbrenner and urge a yes vote on the Nadler amendment.
    Ms. Waters. Mr. Chairman?
    Chairman Sensenbrenner. The gentlewoman from California.
    Ms. Waters. Thank you, Mr. Chairman.
    I want to make it clear that I do commend you for the work 
that has been done.
    I agree with Mr. Nadler. Security is not an area where we 
should have to scrimp and apportion based on what we define as 
threat potential. I think all of our infrastructure is 
threatened. I think it is just as easy for a terrorist to blow 
up a nuclear power plant in some small town as it is to topple 
a building in Los Angeles or someplace else.
    I would just say to you, Mr. Chairman, because you have so 
much influence on the opposite side of the aisle, that we 
should talk about where to find the necessary dollars to make 
sure that we can cover all of what needs to be covered as we 
talk about funding and dealing with our first responders.
    Yesterday, I learned that there was a tremendous 
multibillion dollar subsidy that was given to the tobacco 
industry. And I would just ask my friends who are in control of 
this House to think about where we could find the funds to make 
sure that we don't just talk about funding our first 
responders, but we actually do it, and we don't have to get 
into the business of trying to find out whether or not New York 
is a little bit more of a threat than Los Angeles or vice 
versa.
    Ms. Lofgren. Would the gentlelady yield?
    Ms. Waters. I will yield.
    Ms. Lofgren. I will support the Nadler amendment.
    But as the gentleman from Florida mentioned, I don't 
believe there ought to be any minimums in this bill. I did want 
to mention something, however. Many of us serve on the Homeland 
Security Committee as well the Judiciary, and certainly, the 
Chairman and I do. And those of us who serve on that Committee 
recently had the opportunity to attend classified briefings 
relative to the Critical Infrastructure Threat Assessment.
    Obviously, since it is classified, we cannot discuss what 
was on those lists. I will say that the lists were so shoddily 
constructed, and they were so deficient, that Members from both 
sides of the aisle who attended the classified briefing 
expressed their dismay very vocally to the Department. So I 
think, in addition to pursuing funding based on threat, we 
need, all of us in this House, to jump all over the Department 
of Homeland Security for failing to actually establish the 
threat that was their charge to do in the last 2.5 years.
    And we are doing our part here in the Congress. But if we 
adopt this new method of allocating, we have a real problem 
that we are facing, because there is no plan. There is no plan. 
And that is something that I would suggest all the Members have 
the right to receive that classified briefing, whether or not 
they are on the Homeland Security Committee. And I highly 
recommend that each Member of this Committee do so and take a 
look at their own district and see what is not the list. It 
will be a real eye opener.
    And I thank the lady for yielding.
    Chairman Sensenbrenner. The question is on the Nadler 
amendment to the Sensenbrenner amendment.
    Those in favor will say aye.
    Those opposed, no.
    The ayes appear to have it. The ayes have it. The amendment 
to the amendment is agreed to.
    The question now is on the Sensenbrenner amendment as 
amended.
    Those in favor will say aye.
    Opposed, no.
    The gentleman from New York.
    Mr. Weiner. I have an amendment.
    Chairman Sensenbrenner. Is this an amendment to the 
Sensenbrenner amendment?
    Mr. Weiner. This is not an amendment.
    Chairman Sensenbrenner. The question now is again on the 
Sensenbrenner amendment as amended by the Nadler amendment.
    Those in favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it. And the 
amendment as amended is agreed to.
    Now without objection, the Chair, under the authority to 
make technical and conforming changes, is authorized to include 
port and container security in the appropriate parts of the 
bill as amended by this Committee.
    Hearing no objection, the Chair is given that authority.
    Now are there further amendments?
    Mr. Watt. Mr. Chairman.
    Chairman Sensenbrenner. The gentleman from North Carolina, 
Mr. Watt.
    Mr. Watt. Mr. Chairman, I have an amendment at the desk.
    [The amendment offered by Mr. Watt follows:]
    
    
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    Mr. Watt. And perhaps we can deal with it the same way you 
just dealt with it on the ports.
    Chairman Sensenbrenner. The gentleman proposes to add 
courts and justice facilities.
    Without objection, the amendment is agreed to.
    Are there further amendments?
    Ms. Waters. While you are in an amending mood, let me think 
of more.
    Mr. Nadler. Mr. Chairman, there is an amendment at the 
desk, Nadler .092.
    [The amendment offered by Mr. Nadler follows:]
      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


      
      

  


    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. Amendment to H.R. 3266 offered by Mr. Nadler. At 
the end of the bill, insert the following new section: Section: 
Authority to enter into contracts----
    Mr. Nadler. Mr. Chairman, I waive the reading.
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read, and the gentleman is recognized for 5 
minutes.
    Mr. Nadler. Thank you, Mr. Chairman.
    Before I start my statement, let me say there are three 
things: The text of the bill--text of the amendment. A summary 
of the amendment.
    [The information referred to follows:]
    
    
    Mr. Nadler. And a letter in opposition to the amendment--we 
are being very fair--in support of my amendment.
    Mr. Chairman, I am pleased to offer the High-Risk Nonprofit 
Security Act as an amendment to this legislation. I originally 
introduced this bill with Congressman Nethercutt, Engel and 
Shays. It is currently co-sponsored by 58 Members, up and down 
the political spectrum, including Congress Members Pence, 
Berman, Bachus, Weiner and Wexler who serve on this Committee.
    This legislation is supported by a wide range of 
organizations, including the YMCA, the United Way, United 
Jewish Communities, American Hospital Association, the American 
Red Cross and the Union of Orthodox Jewish Congregations.
    The base bill before us is meant to provide greater 
protection for the American people. Unfortunately, this 
legislation without this amendment does not offer adequate 
protection to thousands of nonprofit institutions that are some 
of our most vulnerable soft targets. The United States has an 
obligation to protect organizations that are potential targets 
of terrorism.
    Recent bombings of synagogues in Instanbul and Casablanca 
and the bombings of mosques and the United Nations headquarters 
in Iraq show that the terrorist threats to soft targets is very 
real. We must provide the means to protect nonprofit 
organizations from potential attacks by those who espouse hate 
and violence. This amendment would authorize the Secretary of 
Homeland Security to provide up to $100 million for security 
assistance in fiscal year 2005 to 501(c)(3) nonprofit 
organizations that are at risk of being attacked by terrorists.
    In addition to funds that would be spent on protections for 
high-risk institutions, such as glass-proofed doors or barriers 
to car bombs, Federal loan guarantees would be available 
through a new office in the Department of Homeland Security 
that would work with vulnerable nonprofit organizations. These 
funds and loan guarantees would be used for security 
enhancements, such as jersey barriers and blast proof doors as 
well as technical assistance to assess security needs, develop 
plans and train personnel.
    This amendment would also provide $50 million in grant 
funds to local police departments to provide additional 
security in areas where there is a high concentration of high-
risk nonprofits.
    Mr. Chairman, I believe that all American citizens are owed 
the best efforts of the Federal Government to protect them from 
terrorism. Some people have expressed concern that this 
amendment may blur the line between the separation of church 
and State. I do not believe this is true. The loan guarantees 
in this bill are modeled after the loan guarantees provided in 
the Church Arson Prevention Act, a law that passed the House 
unanimously. The terrorism protection funds in the bill are 
very similar to the soundproofing funds we currently provide to 
private, public and parochial schools located in close 
proximity to airports to ensure that students have the ability 
to concentrate on class and not on the 747 flying overhead.
    These programs provide a service to American citizens, but 
do not in any way promote religion. This bill would protect 
American citizens but not in any way promote religion. Members 
know--I think Members know that I have taken personally a very 
strict position on Government not promoting religion, but 
neither should we penalize religion.
    Many of the most threatened targets in this country are 
religious institutions or are affiliated with religious 
institutions, and they deserve the protection of the United 
States Government on an equal footing with any other 
nonreligious similarly-threatened institution. Mr. Chairman, 
the threat is serious and real. Communities around the globe 
have been targeted simply because of who they are. Charitable 
institutions and houses of worship are targets precisely 
because of what they represent to the terrorists.
    If the duty of Government to protect citizens from 
terrorism has any meaning, it must include the obligation to 
protect potential soft targets from terrorists. By 
accomplishing this critical national security function without 
in any way getting involved with the kind of issues raised by 
giving Federal funds directly to faith-based institutions, 
which this amendment would not do, we have--this amendment 
strikes an appropriate balance and ensures the safety or goes 
the distance toward assuring the safety of all Americans.
    I want to thank my colleagues for their support and urge a 
yes vote on this important amendment.
    I thank you and yield back.
    Chairman Sensenbrenner. The gentleman from Virginia, Mr. 
Scott, has a secondary amendment. Let's get that on the table 
first.
    Mr. Scott. I have amendment number 51.
    [The amendment offered by Mr. Nadler follows:]
      
      

  


    Chairman Sensenbrenner. Clerk will report the amendment.
    The Clerk. Amendment to the Nadler amendment offered by Mr. 
Scott of Virginia to H.R. 3266. In the section proposed to be 
inserted at the end of the bill and the title proposed to be 
inserted in the Homeland Security Act of 2002 by such section, 
strike ``international'' each place it appears.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Scott. Thank you, Mr. Chairman.
    My amendment would require the word ``international'' to be 
consistently struck from the amendment where it appears.
    For decades, America has been the witness of acts of 
international terrorism abroad. It is only in our recent 
history that America and Americans are forced too well to learn 
the consequences of international terrorism here at home. 
Before the attacks on the World Trade Center and the Pentagon 
on September 11, international extremism was but a real but 
remote concern for most of us.
    But let us not forget the decades of terrorism by the Ku 
Klux Klan or individual attacks, such as the bombings of the 
16th Street Baptist Church in Alabama in 1963, the bombings of 
the Federal building in Oklahoma, 1995, and other such events. 
As we address terrorism, we should legislate to combat and 
eradicate all terrorism. And when we vote for bills to protect 
us in our homes and communities, we should not turn a blind eye 
to the threat of terrorism that exists here at home.
    If we are going to support additional funding to law 
enforcement and security enhancements to protect high-risk 
nonprofit organizations that come under terrorist attack, we 
should not distinguish between those that are threatened by 
fanatics abroad and those who are threatened by fanatics at 
home. A terrorist, regardless of race, religion, national 
origin, sex or ideology, remains a terrorist and purposely 
exacts physical and emotional harm to its victims.
    Southern Poverty Law Center's Intelligence Project, which 
monitors hate groups and extremist activities throughout the 
United States, reported that there were 751 hate groups in 48 
States in America in 2003, and the number is rising. If we are 
going to pass an amendment, we should protect ourselves from 
these groups as well as international terrorists.
    I yield back.
    Chairman Sensenbrenner. The gentleman from New York, Mr. 
Nadler.
    Mr. Nadler. Thank you, Mr. Chairman. I am deeply 
sympathetic with the purpose of this secondary amendment. I 
visited the 16th Street Baptist Church in Alabama with John 
Lewis and others last year, but I do not believe this amendment 
is well advised here--the secondary amendment is well advised.
    We have a long experience with domestic terrorism. We have 
programs and laws that deal with it. For example, the Church 
Arson Prevention Act, on which part of this amendment is 
modeled, is designed to deal with that threat. The threat of 
international terrorism--or at least the recognition of 
international terrorism--is new. This amendment is carefully 
negotiated with a lot of people in both the House and Senate 
and is targeted at international terrorism.
    And I believe we should deal with the new international 
terrorist threat. If there is some weakness in our existing 
laws with respect to domestic terrorism, we should deal with 
that separately. But this is very carefully targeted and 
carefully negotiated and should be left for that purpose.
    Chairman Sensenbrenner. Would the gentleman yield?
    I am happy to support the gentleman's amendment and also 
support him in his opposition to the Scott second-degree 
amendment for the reasons stated. So I would urge a no vote on 
the Scott amendment and adopting the gentleman from New York's 
amendment in a clean manner.
    Mr. Nadler. I thank the gentleman. And I think that 
expresses it all.
    Ms. Waters. Mr. Chairman, look this way.
    Chairman Sensenbrenner. I don't think the Chair has ignored 
the gentleman from California at all.
    Ms. Waters. You have not.
    Chairman Sensenbrenner. Mr. Watt.
    Mr. Watt. I move to strike the last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Watt. For the purpose of doing a couple of things, 
first, I presume that whatever amount of money, whatever we are 
authorizing the use of money for, there is still some monetary 
limit on it. And I presume whatever monies would be allocated 
to this purpose would be coming out of other purposes. Is that 
correct?
    Mr. Nadler. Would the gentleman yield?
    Mr. Watt. Yes.
    Mr. Nadler. The estimated need to deal with this threat is 
between $1 and $2 billion. This bill starts dealing with that 
by authorizing $100 million. It is not out of existing funds, 
but a new authorization, though.
    Mr. Watt. But if you broaden the uses under this bill, 
aren't you just spreading a certain amount of money thinner?
    Mr. Nadler. Would the gentleman yield again?
    Mr. Watt. Yes.
    Mr. Nadler. This bill would authorize $100 million. If you 
broadened what you could use it for, yes, you could potentially 
spend that $100 million more broadly.
    Mr. Watt. That is the point I am trying to make.
    Now my second question then is, why would we set up a whole 
different structure for nonprofits than the bill has? Why 
wouldn't we do it just like we did on ports and courts and 
governments and things on pages 10 and 11? Why would we have a 
whole different infrastructure for 501(c)(3) organizations? Can 
somebody justify that for me?
    Mr. Nadler. If the gentleman would yield.
    For two reasons. We set up a separate program for two 
reasons. Number one, because it is a very specific--frankly, I 
think there are a number of different threats. We ought to have 
a separate program for ports and a separate program for 
airports and so forth because you have to target these things 
differently. But it is a very specific threat aimed at churches 
and synagogues. So that is the first reason.
    The second reason is that, because precisely because some 
of these institutions are sectarian religious institutions, we 
put special protections in this bill that you don't have in 
some of the other legislation to prevent entanglement with 
church-State problems. Some people think we didn't do enough of 
that. We did a heck of a lot more. I would disagree, I think we 
did enough. But in the regular legislation, it doesn't exist.
    Mr. Watt. I presume the Secretary, on page 10, line 20 of 
the bill, of the base bill, would have the authority to 
promulgate regulations or requirements for any of these things. 
Why would we have a whole separate section that seems to put 
nonprofits on a higher plane than the other things that are 
covered under this bill? I mean, that is the concern I have.
    It seems to me that we are dealing--we are always going to 
be dealing with a limited amount of money, and we are going to 
take that limited amount of money and target in a specific way 
to nonprofits, in a way that we are not even targeting the 
ports or courts or food or Government or any other criteria.
    Mr. Nadler. Would the gentleman yield?
    Mr. Watt. Yes.
    Mr. Nadler. We have many specific programs in the Federal 
Government to deal with specific threats. The fear is that this 
is a very specific threat. We know about it. We have seen it in 
Istanbul and Buenos Aires and various other places. And the 
fear is, if we don't have a specific program to deal with it, 
it might not be dealt with.
    Mr. Watt. I am not suggesting that we don't have a specific 
program, but I am suggesting that we treat it just like we did 
with the items on pages 10 and 11 of the bill. Just add another 
section that makes it clear that that is one of the things that 
can be dealt with rather than setting up a whole separate 
infrastructure for nonprofits.
    Chairman Sensenbrenner. Gentleman's time has expired.
    Mr. Watt. I ask unanimous consent for 30 additional 
seconds.
    Chairman Sensenbrenner. Without objection.
    Mr. Watt. And just to make the point, I think we are going 
to--this is elevating one segment of our threat over other 
segments, but it is also going to get us into certain arguments 
about whether the Baptists are more threatened than the other 
faiths are more threatened. I think this is a--I mean, I am 
content to recognize the additional threat, but I don't think 
we ought to be setting up a whole separate infrastructure for 
it.
    Chairman Sensenbrenner. The gentleman's time has once again 
expired.
    Does the gentlewoman from California want to be recognized 
now?
    The gentlewoman is recognized for 5 minutes.
    Ms. Waters. Thank you very much, Mr. Chairman.
    I think Mr. Watt has raised some interesting questions 
about what this means. And I am, too, concerned about providing 
protection for our religious institutions, but I see they are 
identified as nonprofits. Not all religious institutions are 
nonprofit. And I am wondering whether or not this means that, 
as Mr. Watt has said, whether or not we include in this the 
Baptists, the Methodists and the Muslims, everybody. What does 
this mean? And perhaps, I could yield to the gentleman from New 
York and he can could better----
    Mr. Nadler. This isn't specifically for religious 
institutions. This is for nonprofit institutions that are 
threatened, among them religious institutions: The United Way, 
the Red Cross, YMCA are among the people who helped draft this 
bill, because some of their facilities may well be threatened. 
So it is not just religious institutions. Now frankly, maybe I 
am just ignorant, but I am startled to hear that there are for-
profit religious institutions.
    Ms. Waters. You are right. There are religious institutions 
that are for-profit.
    Mr. Nadler. I wasn't aware of that, and maybe we will have 
to consider that in some way, but this is directed at nonprofit 
institutions, not just religious institutions.
    Ms. Waters. That answers my question about who is covered 
under your proposed amendment.
    Chairman Sensenbrenner. The Chair would remind the 
membership that the current pending question is the Scott 
amendment to the Nadler amendment. For what purpose does the 
gentleman from New York seek recognition?
    Mr. Weiner. Strike the last word. If I could clarify a 
question, I think, what Mr. Watt listed earlier. What is listed 
on pages 10 and 11 are the areas and countries of the world 
that we should devote our attention to based on threat. Don't 
misread this list to say that there is going to be, because 
page 10, line 24, says banking and finance, means that grants 
are going to be going to the JP Morgan company.
    What I think the Nadler bill seeks to recognize is that 
there are, in the real world, institutions like the Red Cross, 
religious institutions and others that are under direct threat. 
There is a very strange dynamic going on. You have police 
departments, FBI, law enforcement agencies going and visiting 
these institutions and saying, ``You know, we hear there is a 
threat against your institution. You have to put concrete 
barriers on the sidewalk outside, and we are leaving, and we 
are not going to provide any assistance in helping you do that, 
although it is far beyond what any organization or institution 
is prepared to do.''
    I think what the bill that Congressman Nadler and I and 
others on this Committee are sponsoring and want to include 
here simply recognizes the real threat.
    And just responding to Ms. Waters and something you said 
also, it could well be that we are going to be wrestling with 
this for some time and may have to come back 6 months from now 
and say listen, ``It seems that there are some real threats to 
other types of institutions and organizations, and we have to 
adapt to those.'' if you look to the headlines at the places 
that are being attacked by terrorism around the world are 
identifiable United States institutions, religious institutions 
and religious institutions of many different faiths.
    And I think this is a reflection of the idea that, at the 
same time, Government has to rally around certain sectors of 
the economy to protect them. In some cases, we are also asking 
private organizations that are unprepared to do it because they 
don't have the resources or they don't know how to provide some 
funding. So that is why you don't simply include them on the 
list of 10 and 11, because they are already included in the 
list of 10 and 11 as places that might be problematic. What 
this bill does, though, is provide them direct funding, which 
is an entirely different question.
    And as for the notion of mixing international terrorism 
with domestic terrorism, which is what the Scott amendment to 
the Nadler amendment does, I agree with Congressman Nadler and 
the Chairman that we have to keep an eye on what we are 
actually trying to respond to since September 11. There is no 
doubt that there is a long litany of challenges, safety and 
others, that are posed in this country all the time. This 
legislation is intended to deal with the threat of 
international terrorism, and I think it would be wise to limit 
this amendment to that for the time being, although I would 
encourage us to come back and have hearings about domestic 
terrorism.
    Mr. Watt. Would the gentleman yield?
    I am just wondering why he doesn't think the language on 
page 11, lines 16 through 22, would be comprehensive enough to 
include this. Even if it is not specified as one of the listed 
items, it seems to me that this is broad enough to enable 
grants to----
    Mr. Weiner. If I could reclaim.
    This is broad enough that when the Homeland security 
Department allocates resources to localities and States, what 
they can base that calculation on. And yes, if New York City 
says, ``We have a very large community of Jewish institutions 
that have been subject to threat, we want that to be included 
as one of the reasons we should get more money,'' absolutely 
they can.
    But what the Nadler amendment does is say, wait a minute, 
we are asking private institutions that are subject to threat 
to take their own steps to harden themselves. We are going to 
provide additional funds to allow you to do that. And that is 
not what the base bill does. I mean an equivalent would be, 
which I don't suggest by the way, saying, Yankee Stadium and 
Shay Stadium have additional threats. Now those are 
institutions that, as profit-making institutions, already have 
large security budgets and the like. We might not say to them, 
you need extra resources.
    But a small church, a synagogue, a mosque that doesn't have 
the ability to counter those threats, they would be able to get 
small grants, and they would be relatively small grants if the 
entire allocation would only be $100 million nationwide.
    Chairman Sensenbrenner. The gentleman's time is about to 
expire.
    The question is on the Scott amendment to the Nadler 
amendment.
    Those in favor will say aye.
    Opposed, no.
    Noes appear to have it. The noes have it. The amendment is 
not agreed to.
    The question is now on the Nadler----
    Mr. Scott. I have another secondary amendment.
    [The amendment offered by Mr. Scott follows:]
    
    
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. Amendment offered by Mr. Scott to the Nadler 
amendment to H.R. 3266. Strike ``contract'' each place it 
appears.
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read. The gentleman from Virginia is recognized 
for 5 minutes.
    Mr. Scott. Mr. Chairman, one of the problems we have had 
with this is that we have had different versions, and we are 
under a time restraint, which is not the fault of this 
Committee, but that is just the way it is.
    As I understand the amendment, it provides funding for 
indirect loans and law enforcement, but it also has direct 
contracts. And that creates a problem when you are actually 
fixing places of worship. There are several Supreme Court cases 
that speak directly to this. One is the Tilton case, which 
holds that while the law allowed money which funded sectarian 
and nonsectarian colleges and while the law allowed money to go 
to religious institutions, it also contained a proviso that 
expressly forbid funds being used on buildings that would be 
used for worship or sectarian instruction. The court upheld the 
program, but it unanimously held the proviso was 
constitutionally necessary and unanimously invalidated the part 
of the statute which would have allowed religious schools to 
convert the Federally funded facilities for worship and 
sectarian instruction after 20 years had elapsed.
    There is another case, the Nyquist decision which held that 
the court simply recognized that sectarian schools perform 
secular educational functions as well as religious functions, 
and some form of aid may be channeled to the secular without 
providing direct aid to the sectarian, but the channel is 
narrow. The court went on to say that, if the State may not 
erect buildings in which religious activities are to take 
place, it may not maintain such buildings or renovate them. The 
Government funding, in other words, is only constitutional if 
there is no possibility that structures will be used for 
sectarian worship or instruction. This bill apparently allows 
the Government funding for reinforcing places of worship, and 
therefore, under those two decisions as well as others, is 
unconstitutional, and therefore the amendment would cure the 
bill of those unconstitutional problems.
    Chairman Sensenbrenner. The gentleman from New York.
    Mr. Nadler. Thank you, Mr. Chairman.
    I rise in opposition to the secondary amendment. There is 
no direct contract provided in this bill between the Government 
and any sectarian or religious institution. My amendment on 
page 2 defines the word ``contract'' as follows: The term 
contract means a contract between the Federal Government and a 
contractor selected from a list of certified contractors to 
perform security enhancements and to provide technical 
enhancements approved by the secretary.
    There is no privity of contract between the Federal 
Government or any other agency of Government and any sectarian 
or, for that matter, nonsectarian institution. We were very 
careful about that.
    Second of all, there is also a provision in the bill--and I 
think it comports with those two Supreme Court decisions. We 
now, the Federal Government now gives, provides funding to 
parochial schools, public schools to put in soundproofing to 
schools near airports so that the students can concentrate on 
their arithmetic or Bible classes and not on the noise of the 
747. We are providing loan guarantees under the Church Arson 
Prevention Act, Rehabilitation Act, which would provide for 
loan guarantees to help rebuild.
    What we are saying is, for things that are necessary to 
protect against terrorism--and specifically in the bill, we say 
the term ``security enhancement'' does not include enhancements 
that would otherwise have been reasonably necessary due to 
nonterrorist threats. So, for example, if a church wants to put 
in a burglar alarm system, which would help against regular 
burglars not just terrorists, it couldn't be funded by this.
    I think we have put in enough safeguards to take it away 
from that provision. I think that this is constitutional, and 
we have written it carefully for that purpose, and it doesn't 
fall under those Supreme Court decisions.
    And to take the word ``contract'' everywhere it appears out 
of the bill would simply render the bill incoherent. You can't 
take the word ``contract'' out of the bill. And the contracts, 
in any case, are not with sectarian institutions. They are with 
contractors.
    Mr. Scott. Would the gentleman yield?
    Can the Government pick and choose which places of worship 
will be the beneficiaries of this Government assistance?
    Mr. Nadler. Not just which places of worship. The 
Government will have to choose, on the basis of the degree of 
threat, which nonprofit institutions, religious or otherwise, 
would be helped. By definition, since we are providing $100 
million authorization, not appropriation, the authorization, 
the estimated cost is $1 to $2 billion. The Department of 
Homeland Security is going to have to do triage. They are going 
to have to say that the threat is worse here than there, and 
that is a nonsectarian decision.
    Is the Red Cross building in this town more threatened than 
the local church or vice versa? Yeah. Well, assuming that they 
both apply, they have to make that decision.
    Mr. Scott. Would the gentleman yield? In the Cleveland 
Voucher Case, the court went to show that the parents were 
making the choice and not the Federal Government. And in this 
case, it is clearly the Federal Government who is making a 
choice.
    Mr. Chairman, I would like to ask unanimous consent that a 
letter from the Jewish Reconstructionist Federation and 
American Center of Reform Judaism and Americans United For 
Separation of Church and State in opposition be introduced.
    [The information referred to follows:]
    
    
    Chairman Sensenbrenner. Without objection.
    Mr. Nadler. Could I ask unanimous consent to insert in the 
record the letter in support?
    [The information referred to follows:]
    
    
    Chairman Sensenbrenner. Without objection as well.
    The question is on the second Scott second-degree amendment 
to the Nadler amendment.
    Those in favor will say aye.
    Opposed, no.
    The noes appear to have it. The noes have it. The amendment 
is not agreed to.
    The question now is on the Nadler amendment. Those in favor 
will say aye.
    Opposed no.
    The ayes appear to have it. The ayes have it, and the 
amendment is agreed to.
    Are there further amendments?
    The gentleman from New York, Mr. Weiner.
    Mr. Weiner. Weiner .089.
    [The amendment offered by Mr. Weiner follows:]
    
    
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. H.R. 3266 offered by Mr. Weiner----
    Mr. Weiner. Request unanimous consent it be accepted as 
read.
    Chairman Sensenbrenner. Without objection, so ordered. The 
gentleman is recognized for 5 minutes.
    Will the gentleman yield?
    This is a very constructive amendment that further targets 
the money based upon threat amendments. I think it is an 
improvement to the bill and would urge the Members to support 
it.
    The question is on the Weiner amendment. Those in favor 
will say aye.
    Opposed no.
    The ayes appear to have it. The ayes have it.
    Are there further amendments?
    If there are no further amendments, a reporting quorum is 
present.
    Without objection, the version of the bill reported by the 
Select Committee on Homeland Security laid down as the base 
text as amended is adopted.
    The question occurs on the motion to report the bill H.R. 
3266 favorably as amended.
    All in favor will say aye.
    Opposed, no. The ayes appear to have it. The ayes have it. 
The motion to report favorably is agreed to.
    Without objection, the bill will be reported favorably to 
the House in the form of a single amendment in the nature of a 
substitute incorporating the amendments adopted here today.
    Without objection, the Chairman is authorized to move to go 
to conference pursuant to House rules.
    Without objection, the staff is directed to make any 
technical and conforming changes including the one relating to 
container and port security, and all Members will be given 2 
days, as provided by the rules, in which to submit additional 
dissenting supplemental or minority views.
    I think this is a good time to adjourn. We will have 
another markup next week with the remaining bills on the 
agenda. The Committee stands adjourned.
    [Whereupon, at 1:00 p.m., the Committee was adjourned.]
                            Additional Views

    These views note concerns with H.R. 3266 as amended by the 
Nadler amendment authorizing the Federal Government to enter 
into and execute security enhancement and technical assistance 
contracts--including security enhancements in the form of 
improvement upon real property--for the direct benefit of 
buildings used for worship or sectarian service or instruction. 
While it is conceded that the purpose of the amendment is to 
protect high-risk non-profit organizations, the part of the 
provision which authorizes the Government to provide funds 
directly for the purpose of improvements or enhancements of 
places used for worship appears to be in violation of the 
Constitution.
    The Supreme Court has repeatedly held that no Government 
funds can be used to maintain, restore, or make capital 
improvements to physical structures that are used as houses of 
worship, even if religious services are infrequent. This 
amendment, therefore, runs contrary to what is allowed under 
the Constitution and our First Amendment jurisprudence. The 
amendment empowers the Secretary of the Department of Homeland 
Security to provide Government money towards ``the purchase and 
installation of security equipment in real property (including 
buildings and improvements), owned or leased by a nonprofit 
organization,'' an act that is clearly unconstitutional to the 
extent that it applies to houses of worship or buildings used 
for sectarian instruction.
    Three Supreme Court decisions make clear that it is 
unconstitutional to allocate Federal grants for the repair or 
preservation of structures devoted to worship or religious 
instruction, and all three decisions remain binding law. In 
Tilton v. Richardson, 403 U.S. 672 (1971), the Court laid the 
framework for the current constitutional requirements regarding 
construction, upkeep, and maintenance of religious 
institutions' physical facilities. Tilton involved a challenge 
to the constitutionality of a Federal law under which Federal 
funds were used by secular and religious institutions of higher 
education for the construction of libraries and other campus 
buildings. While the law allowed money to go to religious 
institutions, it also contained a proviso that expressly 
forbade funds from being used on buildings that would be used 
for worship or sectarian instruction. The Court upheld the 
program, but it unanimously held that the proviso was 
constitutionally necessary and unanimously invalidated part of 
the statute that would have allowed religious schools to 
convert the federally-funded facilities for worship or 
sectarian instruction after twenty years had passed. The Court 
made clear that no building that was built with Federal funds 
can ever be used for worship or sectarian instruction. 403 U.S. 
at 692.
    In two subsequent cases decided 2 years later, the Supreme 
Court clearly reaffirmed the principle that the First Amendment 
prohibits the Government from subsidizing the construction or 
repair of buildings used as houses of worship. In Hunt v. 
McNair, 413 U.S. 734 (1973), the Supreme Court upheld the South 
Carolina Educational Facilities Authority Act, which 
established an ``Educational Facilities Authority,'' through 
which educational facilities could borrow money for use in 
their facilities at favorable interest rates. However, the Act 
required each lease agreement to contain a clause forbidding 
religious use in such facilities and allowing inspections to 
enforce that requirement. 413 U.S. at 744. The Court upheld the 
Act, including the condition that Government-funded bond 
financed physical structures could never be used for religious 
worship or instruction.
    Finally, in Committee for Public Education v. Nyquist, 413 
U.S. 756 (1973), the Supreme Court struck down New York's 
program of providing grants to nonpublic schools for use of 
maintenance and repair of ``school facilities and equipment to 
ensure health, welfare, and safety of enrolled students.'' 413 
U.S. at 762. The Court summarized its previous holdings as 
``simply recogniz[ing] that sectarian schools perform secular, 
educational functions as well as religious functions, and that 
some forms of aid may be channeled to the secular without 
providing direct aid to the sectarian. But the channel is a 
narrow one.'' Id. at 775. The Court then held that ``[i]f the 
State may not erect buildings in which religious activities are 
to take place, it may not maintain such buildings or renovate 
them when they fall into disrepair.'' Id. at 777. In other 
words, Government funding for either the construction or 
maintenance and repair of physical structures is 
unconstitutional if there is any possibility that the 
structures will be used for sectarian worship or instruction. 
Otherwise the Government would be subsidizing religious 
activity.
    Thus, under Tilton, McNair, and Nyquist, it would be 
unconstitutional for the Federal Government to enter into and 
execute security enhancement and technical assistance contracts 
that will augment any buildings used by non-profit 
organizations for worship or religious instruction. All three 
of these cases firmly establish that it is constitutionally 
impermissible for the Government to provide aid for the 
construction, repair, or maintenance of any buildings that are, 
or might be, used for religious purposes, even when the 
underlying purpose is to enhance homeland security.

                                   John Conyers, Jr.
                                   Robert C. Scott.