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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     109-65

======================================================================

 
      FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS ACT OF 2005

                                _______
                                

 April 28, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Cox, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1544]

      [Including cost estimate of the Congressional Budget Office]

      The Committee on Homeland Security, to whom was referred 
the bill (H.R. 1544) to provide faster and smarter funding for 
first responders, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    15
Background and Need for Legislation..............................    16
Hearings.........................................................    19
Committee Consideration..........................................    19
Committee Votes..................................................    19
Committee Oversight Findings.....................................    22
Statement of General Performance Goals and Objectives............    22
New Budget Authority, Entitlement Authority, and Tax Expenditures    22
Congressional Budget Office Estimate.............................    22
Federal Mandates Statement.......................................    24
Advisory Committee Statement.....................................    24
Constitutional Authority Statement...............................    24
Applicability to Legislative Branch..............................    24
Section-by-Section Analysis of the Legislation...................    25
Changes in Existing Law Made by the Bill, as Reported............    34
Letters and Correspondence.......................................    54

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

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Faster and Smarter Funding for First 
Responders Act of 2005''.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) In order to achieve its objective of preventing, 
        minimizing the damage from, 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 prevent and 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 
        that support first responders.
          (4) Ensuring adequate resources for the new national mission 
        of homeland security, without degrading the ability to address 
        effectively other types of major disasters and emergencies, 
        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-September 11 priorities, on the other.
          (5) While a discrete homeland security grant making process 
        is necessary to ensure proper focus on the unique aspects of 
        terrorism preparedness, it is essential that State and local 
        strategies for utilizing such grants be integrated, to the 
        greatest extent practicable, with existing State and local 
        emergency management plans.
          (6) 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 threats, 
        vulnerabilities, and consequences.
          (7) 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.
          (8) 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.
          (9) 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, to direct 
        funding to meet those needs, and to measure preparedness levels 
        on a national scale.
          (10) To facilitate progress in achieving, maintaining, and 
        enhancing 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.
          (11) 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.
          (12) 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.
          (13) An important aspect of terrorism preparedness 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 prevent, prepare for, respond to, 
        mitigate against, and recover from acts of terrorism.
          (14) 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

``Sec. 1801. Definitions.
``Sec. 1802. Faster and Smarter Funding for First Responders.
``Sec. 1803. Covered grant eligibility and criteria.
``Sec. 1804. Risk-based evaluation and prioritization.
``Sec. 1805. Task Force on Terrorism Preparedness for First Responders.
``Sec. 1806. Use of funds and accountability requirements.
``Sec. 1807. National standards for first responder equipment and 
training.''
          (2) by adding at the end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. DEFINITIONS.

  ``In this title:
          ``(1) Board.--The term `Board' means the First Responder 
        Grants Board established under section 1804.
          ``(2) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 1802.
          ``(3) Directly eligible tribe.--The term `directly eligible 
        tribe' means any Indian tribe or consortium of Indian tribes 
        that--
                  ``(A) meets the criteria for inclusion in the 
                qualified applicant pool for Self-Governance that are 
                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 
                designated as high-risk critical infrastructure by the 
                Secretary;
                  ``(iii) is located within or contiguous to one of the 
                50 largest metropolitan statistical areas in the United 
                States; or
                  ``(iv) has more than 1,000 square miles of Indian 
                country, as that term is defined in section 1151 of 
                title 18, United States Code.
          ``(4) 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).
          ``(5) Emergency preparedness.--The term `emergency 
        preparedness'' shall have the same meaning that term has under 
        section 602 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5195a).
          ``(6) 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, respond to, and recover from 
        acts of terrorism consistent with established practices.
          ``(7) First responder.--The term `first responder' shall have 
        the same meaning as the term `emergency response provider'.
          ``(8) Indian tribe.--The term `Indian tribe' means any Indian 
        tribe, band, nation, or other organized group or community, 
        including any Alaskan Native village or regional or village 
        corporation as defined in or established pursuant to the 
        Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 
        which is recognized as eligible for the special programs and 
        services provided by the United States to Indians because of 
        their status as Indians.
          ``(9) 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 that they encompass.
          ``(10) Task force.--The term `Task Force' means the Task 
        Force on Terrorism Preparedness for First Responders 
        established under section 1805.
          ``(11) Terrorism preparedness.--The term `terrorism 
        preparedness'' means any activity designed to improve the 
        ability to prevent, prepare for, respond to, mitigate against, 
        or recover from threatened or actual terrorist attacks.

``SEC. 1802. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  ``(a) Covered Grants.--This title applies to grants provided by the 
Department to States, regions, or directly eligible tribes for the 
primary purpose of improving the ability of first responders to 
prevent, prepare for, respond to, mitigate against, or recover from 
threatened or actual terrorist attacks, especially those involving 
weapons of mass destruction, administered 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.
          ``(3) Law enforcement terrorism prevention program.--The Law 
        Enforcement Terrorism Prevention Program 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. 1803. 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) Grant Criteria.--The Secretary shall award covered grants to 
assist States and local governments in achieving, maintaining, and 
enhancing the essential capabilities for terrorism preparedness 
established by the Secretary.
  ``(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) describes the essential capabilities that 
                communities within the State should possess, or to 
                which they should have access, based upon the terrorism 
                risk factors relevant to such communities, in order to 
                meet the Department's goals for terrorism preparedness;
                  ``(B) demonstrates the extent to which the State has 
                achieved the essential capabilities that apply to the 
                State;
                  ``(C) demonstrates the needs of the State necessary 
                to achieve, maintain, or enhance the essential 
                capabilities that apply to the State;
                  ``(D) includes a prioritization of such needs based 
                on threat, vulnerability, and consequence assessment 
                factors applicable to the State;
                  ``(E) describes how the State intends--
                          ``(i) to address such needs at the city, 
                        county, regional, tribal, State, and interstate 
                        level, including a precise description of any 
                        regional structure the State has established 
                        for the purpose of organizing homeland security 
                        preparedness activities funded by covered 
                        grants;
                          ``(ii) to use all Federal, State, and local 
                        resources available for the purpose of 
                        addressing such needs; and
                          ``(iii) to give particular emphasis to 
                        regional planning and cooperation, including 
                        the activities of multijurisdictional planning 
                        agencies governed by local officials, both 
                        within its jurisdictional borders and with 
                        neighboring States;
                  ``(F) with respect to the emergency preparedness of 
                first responders, addresses the unique aspects of 
                terrorism as part of a comprehensive State emergency 
                management plan; and
                  ``(G) provides for coordination of response and 
                recovery efforts at the local level, including 
                procedures for effective incident command in 
                conformance with the National Incident Management 
                System.
          ``(2) Consultation.--The State plan submitted under paragraph 
        (1) shall be developed in consultation with and subject to 
        appropriate comment by local governments and first responders 
        within the State.
          ``(3) 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.
          ``(4) Revisions.--A State may revise the applicable State 
        homeland security plan approved by the Secretary under this 
        subsection, subject to approval of the revision by the 
        Secretary.
  ``(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.--Except as otherwise provided in this 
        subsection, 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 at such time 
        as the Secretary may reasonably require for 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 March 1 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 
                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 
                1806(g)(1), would assist in fulfilling the essential 
                capabilities for terrorism preparedness 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 State, a description of 
                how the State plans to allocate the covered grant funds 
                to regions, local governments, and Indian tribes;
                  ``(E) 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;
                  ``(F) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds;
                  ``(G) if the applicant is a directly eligible tribe, 
                a designation of a specific individual to serve as the 
                tribal liaison; and
                  ``(H) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 1806(g)(2).
          ``(5) Regional applications.--
                  ``(A) Relationship to state applications.--A regional 
                application--
                          ``(i) shall be coordinated with an 
                        application submitted by the State or States of 
                        which such region is a part;
                          ``(ii) shall supplement and avoid duplication 
                        with such State application; and
                          ``(iii) shall address the unique regional 
                        aspects of such region's terrorism preparedness 
                        needs beyond those provided for in the 
                        application of such State or States.
                  ``(B) State review and submission.--To ensure the 
                consistency required under subsection (d) and the 
                coordination required under subparagraph (A) of this 
                paragraph, an applicant that is a region must submit 
                its application to each State of which any part is 
                included in the region for review and concurrence prior 
                to the submission of such application to the Secretary. 
                The regional application shall be transmitted to the 
                Secretary through each such State within 30 days of its 
                receipt, unless the Governor of such a State notifies 
                the Secretary, in writing, that such regional 
                application is inconsistent with the State's homeland 
                security plan and provides an explanation of the 
                reasons therefor.
                  ``(C) Distribution of regional awards.--If the 
                Secretary approves a regional application, then the 
                Secretary shall distribute a regional award to the 
                State or States submitting the applicable regional 
                application under subparagraph (B), and each such State 
                shall, not later than the end of the 45-day period 
                beginning on the date after receiving a regional award, 
                pass through to the region all covered grant funds or 
                resources purchased with such funds, except those funds 
                necessary for the State to carry out its 
                responsibilities with respect to such regional 
                application: Provided, That in no such case shall the 
                State or States pass through to the region less than 80 
                percent of the regional award.
                  ``(D) Certifications regarding distribution of grant 
                funds to regions.--Any State that receives a regional 
                award under subparagraph (C) shall certify to the 
                Secretary, by not later than 30 days after the 
                expiration of the period described in subparagraph (C) 
                with respect to the grant, that the State has made 
                available to the region the required funds and 
                resources in accordance with subparagraph (C).
                  ``(E) Direct payments to regions.--If any State fails 
                to pass through a regional award to a region as 
                required by subparagraph (C) within 45 days after 
                receiving such award and does not request or receive an 
                extension of such period under section 1806(h)(2), the 
                region may petition the Secretary to receive directly 
                the portion of the regional award that is required to 
                be passed through to such region under subparagraph 
                (C).
                  ``(F) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(E)(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 the state or states.--To ensure 
                the consistency required under subsection (d), an 
                applicant that is a directly eligible tribe must submit 
                its application to each State within the boundaries of 
                which any part of such tribe is located for direct 
                submission to the Department along with the application 
                of such State or States.
                  ``(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 such tribe 
                is located to comment to the Secretary on the 
                consistency of the tribe's application with the State's 
                homeland security plan. Any such comments shall be 
                submitted to the Secretary concurrently with the 
                submission of the State and tribal applications.
                  ``(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 
                to approve any application of such tribe. The Secretary 
                shall notify each State within the boundaries of which 
                any part of such tribe is located of the approval of an 
                application by such tribe.
                  ``(D) Tribal liaison.--A tribal liaison designated 
                under paragraph (4)(G) shall--
                          ``(i) coordinate with Federal, State, local, 
                        regional, and private officials 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 such tribe 
                        and to improve the tribe's access to covered 
                        grants; and
                          ``(iii) administer, in consultation with 
                        State, local, regional, and private officials, 
                        covered grants awarded to such tribe.
                  ``(E) Limitation on the number of 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 that does not receive a grant directly under this 
                section is eligible to receive funds under a covered 
                grant from the State or States within the boundaries of 
                which any part of such tribe is located, consistent 
                with the homeland security plan of the State as 
                described in subsection (c). If a State fails to comply 
                with section 1806(g)(1), the tribe may request payment 
                under section 1806(h)(3) in the same manner as a local 
                government.
          ``(7) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary, 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.

``SEC. 1804. RISK-BASED EVALUATION AND PRIORITIZATION.

  ``(a) 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;
                  ``(F) the Director of the Office for Domestic 
                Preparedness; and
                  ``(G) the Administrator of the United States Fire 
                Administration.
          ``(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.
  ``(b) Functions of Under Secretaries.--The Under Secretaries referred 
to in subsection (a)(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.
  ``(c) Prioritization of Grant Applications.--
          ``(1) Factors to be considered.--The Board shall evaluate and 
        annually prioritize all pending applications for covered grants 
        based upon the degree to which they would, by achieving, 
        maintaining, or enhancing the essential capabilities of the 
        applicants on a nationwide basis, lessen the threat to, 
        vulnerability of, and consequences for persons (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such evaluation and prioritization 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 Board 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        United States, urban and rural:
                  ``(A) Agriculture and food.
                  ``(B) Banking and finance.
                  ``(C) Chemical industries.
                  ``(D) The defense industrial base.
                  ``(E) Emergency services.
                  ``(F) Energy.
                  ``(G) Government facilities.
                  ``(H) Postal and shipping.
                  ``(I) Public health and health care.
                  ``(J) Information technology.
                  ``(K) Telecommunications.
                  ``(L) Transportation systems.
                  ``(M) Water.
                  ``(N) Dams.
                  ``(O) Commercial facilities.
                  ``(P) National monuments and icons.
        The order in which the critical infrastructure sectors are 
        listed in this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such sectors.
          ``(3) Types of threat.--The Board specifically shall consider 
        the following types of threat to the critical infrastructure 
        sectors described in paragraph (2), and to populations in all 
        areas of the United States, urban and rural:
                  ``(A) Biological threats.
                  ``(B) Nuclear threats.
                  ``(C) Radiological threats.
                  ``(D) Incendiary threats.
                  ``(E) Chemical threats.
                  ``(F) Explosives.
                  ``(G) Suicide bombers.
                  ``(H) Cyber threats.
                  ``(I) Any other threats based on proximity to 
                specific past acts of terrorism or the known activity 
                of any terrorist group.
        The order in which the types of threat are listed in this 
        paragraph shall not be construed as an order of priority for 
        consideration of the importance of such threats.
          ``(4) Consideration of additional factors.--The Board shall 
        take into account any other specific threat to a population 
        (including a transient commuting or tourist population) or 
        critical infrastructure sector that the Board has determined to 
        exist. In evaluating the threat to a population or critical 
        infrastructure sector, the Board shall give greater weight to 
        threats of terrorism based upon their specificity and 
        credibility, including any pattern of repetition.
          ``(5) Minimum amounts.--After evaluating and prioritizing 
        grant applications under paragraph (1), the Board shall ensure 
        that, for each fiscal year--
                  ``(A) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern Mariana 
                Islands, that has an approved State homeland security 
                plan receives no less than 0.25 percent of the funds 
                available for covered grants for that fiscal year for 
                purposes of implementing its homeland security plan in 
                accordance with the prioritization of needs under 
                section 1803(c)(1)(D);
                  ``(B) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern Mariana 
                Islands, that has an approved State homeland security 
                plan and that meets one or both of the additional high-
                risk qualifying criteria under paragraph (6) receives 
                no less than 0.45 percent of the funds available for 
                covered grants for that fiscal year for purposes of 
                implementing its homeland security plan in accordance 
                with the prioritization of needs under section 
                1803(c)(1)(D);
                  ``(C) the Virgin Islands, American Samoa, Guam, and 
                the Northern Mariana Islands each receives no less than 
                0.08 percent of the funds available for covered grants 
                for that fiscal year for purposes of implementing its 
                approved State homeland security plan in accordance 
                with the prioritization of needs under section 
                1803(c)(1)(D); and
                  ``(D) directly eligible tribes collectively receive 
                no less than 0.08 percent of the funds available for 
                covered grants for such fiscal year for purposes of 
                addressing the needs identified in the applications of 
                such tribes, consistent with the homeland security plan 
                of each State within the boundaries of which any part 
                of any such tribe is located, except that this clause 
                shall not apply with respect to funds available for a 
                fiscal year if the Secretary receives less than 5 
                applications for such fiscal year from such tribes 
                under section 1803(e)(6)(A) or does not approve at 
                least one such application.
          ``(6) Additional high-risk qualifying criteria.--For purposes 
        of paragraph (5)(B), additional high-risk qualifying criteria 
        consist of--
                  ``(A) having a significant international land border; 
                or
                  ``(B) adjoining a body of water within North America 
                through which an international boundary line extends.
  ``(d) Effect of Regional Awards on State Minimum.--Any regional 
award, or portion thereof, provided to a State under section 
1803(e)(5)(C) shall not be considered in calculating the minimum State 
award under subsection (c)(5) of this section.

``SEC. 1805. TASK FORCE ON TERRORISM PREPAREDNESS FOR FIRST RESPONDERS.

  ``(a) Establishment.--To assist the Secretary in updating, revising, 
or replacing essential capabilities for terrorism preparedness, the 
Secretary shall establish an advisory body pursuant to section 871(a) 
not later than 60 days after the date of the enactment of this section, 
which shall be known as the Task Force on Terrorism Preparedness for 
First Responders.
  ``(b) Update, Revise, or Replace.--The Secretary shall regularly 
update, revise, or replace the essential capabilities for terrorism 
preparedness as necessary, but not less than every 3 years.
  ``(c) Report.--
          ``(1) In general.--The Task Force shall submit to the 
        Secretary, by not later than 12 months after its establishment 
        by the Secretary under subsection (a) and not later than every 
        2 years thereafter, a report on its recommendations for 
        essential capabilities for terrorism preparedness.
          ``(2) Contents.--Each 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 
                previous 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.
          ``(3) Consistency with federal working group.--The Task Force 
        shall ensure that its recommendations for essential 
        capabilities for terrorism preparedness are, to the extent 
        feasible, consistent with any preparedness goals or 
        recommendations of the Federal working group established under 
        section 319F(a) of the Public Health Service Act (42 U.S.C. 
        247d-6(a)).
          ``(4) Comprehensiveness.--The Task Force shall ensure that 
        its recommendations regarding essential capabilities for 
        terrorism preparedness are made within the context of a 
        comprehensive State emergency management system.
          ``(5) Prior measures.--The Task Force shall ensure that its 
        recommendations regarding essential capabilities for terrorism 
        preparedness take into account any capabilities that State or 
        local officials have determined to be essential and have 
        undertaken since September 11, 2001, to prevent, prepare for, 
        respond to, or recover from terrorist attacks.
  ``(d) Membership.--
          ``(1) In general.--The Task Force shall consist of 25 members 
        appointed by the Secretary, and shall, to the extent 
        practicable, represent a geographic (including urban and rural) 
        and substantive cross section of governmental and 
        nongovernmental first responder disciplines from the State and 
        local levels, including as appropriate--
                  ``(A) members selected from the emergency response 
                field, including fire service 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 first responder disciplines; and
                  ``(D) State and local officials with expertise in 
                terrorism preparedness, subject to the condition that 
                if any such official is an elected official 
                representing one of the two major political parties, an 
                equal number of elected officials shall be selected 
                from each such party.
          ``(2) Coordination with the department of health and health 
        services.--In the selection of members of the Task Force who 
        are health professionals, including emergency medical 
        professionals, the Secretary shall coordinate such selection 
        with the Secretary of Health and Human Services.
          ``(3) Ex officio members.--The Secretary and the Secretary of 
        Health and Human Services shall each designate one or more 
        officers of their respective Departments to serve as ex officio 
        members of the Task Force. One of the ex officio members from 
        the Department of Homeland Security shall be the designated 
        officer of the Federal Government for purposes of subsection 
        (e) of section 10 of the Federal Advisory Committee Act (5 App. 
        U.S.C.).
  ``(e) Applicability of Federal Advisory Committee Act.--
Notwithstanding section 871(a), the Federal Advisory Committee Act (5 
App. U.S.C.), 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. 1806. 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;
          ``(2) exercises to strengthen terrorism preparedness;
          ``(3) training for prevention (including detection) of, 
        preparedness for, response to, or recovery from attacks 
        involving weapons of mass destruction, including training in 
        the use of equipment and computer software;
          ``(4) developing or updating State homeland security plans, 
        risk assessments, mutual aid agreements, and emergency 
        management plans to enhance terrorism preparedness;
          ``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
          ``(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 purposes;
          ``(7) additional personnel costs resulting from--
                  ``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System by the Secretary, or 
                a similar elevation in threat alert level issued by a 
                State, region, or local government with the approval of 
                the Secretary;
                  ``(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) protecting critical infrastructure against potential 
        attack by the addition of barriers, fences, gates, and other 
        such devices, except that the cost of such measures may not 
        exceed the greater of--
                  ``(A) $1,000,000 per project; or
                  ``(B) such greater amount as may be approved by the 
                Secretary, which may not exceed 10 percent of the total 
                amount of the covered grant;
          ``(10) the costs of commercially available interoperable 
        communications equipment (which, where applicable, is based on 
        national, voluntary consensus standards) that the Secretary, in 
        consultation with the Chairman of the Federal Communications 
        Commission, deems best suited to facilitate interoperability, 
        coordination, and integration between and among emergency 
        communications systems, and that complies with prevailing grant 
        guidance of the Department for interoperable communications;
          ``(11) educational curricula development for first responders 
        to ensure that they are prepared for terrorist attacks;
          ``(12) training and exercises to assist public elementary and 
        secondary schools in developing and implementing programs to 
        instruct students regarding age-appropriate skills to prevent, 
        prepare for, respond to, mitigate against, or recover from an 
        act of terrorism;
          ``(13) paying of administrative expenses directly related to 
        administration of the grant, except that such expenses may not 
        exceed 3 percent of the amount of the grant;
          ``(14) paying for the conduct of any activity permitted under 
        the Law Enforcement Terrorism Prevention Program, or any such 
        successor to such program; and
          ``(15) 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;
          ``(2) to construct buildings or other physical facilities;
          ``(3) to acquire land; or
          ``(4) for any State or local government cost sharing 
        contribution.
  ``(c) Multiple-Purpose Funds.--Nothing in this section shall be 
construed to preclude State and local governments from using covered 
grant funds in a manner that also enhances first responder preparedness 
for emergencies and disasters unrelated to acts of terrorism, if such 
use assists such governments in achieving essential capabilities for 
terrorism preparedness established by the Secretary.
  ``(d) Reimbursement of Costs.--In addition to the activities 
described in subsection (a), a covered grant may be used to provide a 
reasonable stipend to paid-on-call or volunteer first responders who 
are not otherwise compensated for travel to or participation in 
training covered by this section. Any such reimbursement shall not be 
considered compensation for purposes of rendering such a first 
responder an employee under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.).
  ``(e) Assistance Requirement.--The Secretary may not require that 
equipment paid for, wholly or in part, with funds provided as a covered 
grant be made available for responding to emergencies in surrounding 
States, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
  ``(f) 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.
  ``(g) 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) Quarterly report on homeland security spending.--The 
        Federal share described in paragraph (2)(A) may be increased by 
        up to 2 percent for any State, region, or directly eligible 
        tribe that, not later than 30 days after the end of each fiscal 
        quarter, submits to the Secretary a report on that fiscal 
        quarter. Each such report must include, for each recipient of a 
        covered grant or a pass-through under paragraph (1)--
                  ``(A) the amount obligated to that recipient in that 
                quarter;
                  ``(B) the amount expended by that recipient in that 
                quarter; and
                  ``(C) a summary description of the items purchased by 
                such recipient with such amount.
          ``(5) Annual report on homeland security spending.--Each 
        recipient of a covered grant shall submit an annual report to 
        the Secretary not later than 60 days after the end of each 
        Federal 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 submit its report to each State within the 
        boundaries of which any part of such tribe is located. Each 
        report must include the following:
                  ``(A) The amount, ultimate recipients, and dates of 
                receipt of all funds received under the grant during 
                the previous fiscal year.
                  ``(B) The amount and the dates of 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, maintained, 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.
          ``(6) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        annual report under paragraph (5) 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.
          ``(7) Provision of reports.--The Secretary shall ensure that 
        each annual report under paragraph (5) is provided to the Under 
        Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
  ``(h) 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 (g)(1) within 
        45 days after receiving funds under the grant, the Secretary 
        may--
                  ``(A) reduce grant payments to the grant recipient 
                from the portion of grant funds that is not required to 
                be passed through under subsection (g)(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 
                        (g)(1); or
                          ``(iii) for each day that the grant recipient 
                        fails to pass through funds or resources in 
                        accordance with subsection (g)(1), reducing 
                        grant payments to the grant recipient from the 
                        portion of grant funds that is not required to 
                        be passed through under subsection (g)(1), 
                        except that the total amount of such reduction 
                        may not exceed 20 percent of the total amount 
                        of the grant.
          ``(2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day period 
        under section 1803(e)(5)(E) or paragraph (1) for an additional 
        15-day period. The Secretary may approve such a request, and 
        may extend such period for additional 15-day periods, if the 
        Secretary determines that the resulting delay in providing 
        grant funding to the local government entities that will 
        receive funding under the grant will not have a significant 
        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 (g)(1); and
                          ``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                  ``(B) Showing required.--To receive a payment under 
                this paragraph, a local 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 
                        (g)(1); and
                          ``(iv) it did not receive the portion of the 
                        overall grant that was earmarked or designated 
                        for its use or benefit.
                  ``(C) Effect of payment.--Payment of grant funds to a 
                local government under this paragraph--
                          ``(i) shall not affect any payment to another 
                        local government under this 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.
  ``(i) Reports to Congress.--The Secretary shall submit an annual 
report to the Congress by January 31 of each year covering the 
preceding fiscal year--
          ``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State, 
        region, and directly eligible tribe in the preceding fiscal 
        year;
          ``(2) containing information on the use of such grant funds 
        by grantees; and
          ``(3) describing--
                  ``(A) the Nation's progress in achieving, 
                maintaining, and enhancing the essential capabilities 
                established by the Secretary as a result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year; and
                  ``(B) an estimate of the amount of expenditures 
                required to attain across the United States the 
                essential capabilities established by the Secretary.

``SEC. 1807. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  ``(a) Equipment 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, 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 1805(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;
                  ``(C) shall be focused on maximizing 
                interoperability, interchangeability, durability, 
                flexibility, efficiency, efficacy, portability, 
                sustainability, and safety; and
                  ``(D) shall cover all appropriate uses of the 
                equipment.
          ``(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, mitigate against, and recover from 
                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.
          ``(3) Consistency.--In carrying out this subsection, the 
        Secretary shall ensure that such training standards are 
        consistent with the principles of emergency preparedness for 
        all hazards.
  ``(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;
          ``(12) the Emergency Management Accreditation Program; and
          ``(13) 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.
  ``(d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for first 
responder equipment or training that involve or relate to health 
professionals, including emergency medical professionals, the Secretary 
shall coordinate activities under this section with the Secretary of 
Health and Human Services.''.
  (b) Definition of Emergency Response Providers.--Paragraph (6) of 
section 2 of the Homeland Security Act of 2002 (Public Law 107-296; 6 
U.S.C. 101(6)) is amended by striking ``includes'' and all that follows 
and inserting ``includes Federal, State, and local governmental and 
nongovernmental emergency public safety, law enforcement, fire, 
emergency response, emergency medical (including hospital emergency 
facilities), and related personnel, organizations, agencies, and 
authorities.''.

SEC. 4. SUPERSEDED PROVISION.

  This Act supersedes section 1014(c)(3) of Public Law 107-56.

SEC. 5. OVERSIGHT.

  The Secretary of Homeland Security shall establish within the Office 
for Domestic Preparedness an Office of the Comptroller to oversee the 
grants distribution process and the financial management of the Office 
for Domestic Preparedness.

SEC. 6. GAO REPORT ON AN INVENTORY AND STATUS OF HOMELAND SECURITY 
                    FIRST RESPONDER TRAINING.

  (a) In General.--The Comptroller General of the United States shall 
report to the Congress in accordance with this section--
          (1) on the overall inventory and status of first responder 
        training programs of the Department of Homeland Security and 
        other departments and agencies of the Federal Government; and
          (2) the extent to which such programs are coordinated.
  (b) Contents of Reports.--The reports under this section shall 
include--
          (1) an assessment of the effectiveness of the structure and 
        organization of such training programs;
          (2) recommendations to--
                  (A) improve the coordination, structure, and 
                organization of such training programs; and
                  (B) increase the availability of training to first 
                responders who are not able to attend centralized 
                training programs;
          (3) the structure and organizational effectiveness of such 
        programs for first responders in rural communities;
          (4) identification of any duplication or redundancy among 
        such programs;
          (5) a description of the use of State and local training 
        institutions, universities, centers, and the National Domestic 
        Preparedness Consortium in designing and providing training;
          (6) a cost-benefit analysis of the costs and time required 
        for first responders to participate in training courses at 
        Federal institutions;
          (7) an assessment of the the approval process for certifying 
        non-Department of Homeland Security training courses that are 
        useful for anti-terrorism purposes as eligible for grants 
        awarded by the Department;
          (8) a description of the use of Department of Homeland 
        Security grant funds by States and local governments to acquire 
        training;
          (9) an analysis of the feasibility of Federal, State, and 
        local personnel to receive the training that is necessary to 
        adopt the National Response Plan and the National Incident 
        Management System; and
          (10) the role of each first responder training institution 
        within the Department of Homeland Security in the design and 
        implementation of terrorism preparedness and related training 
        courses for first responders.
  (c) Deadlines.--The Comptroller General shall--
          (1) submit a report under subsection (a)(1) by not later than 
        60 days after the date of the enactment of this Act; and
          (2) submit a report on the remainder of the topics required 
        by this section by not later than 120 days after the date of 
        the enactment of this Act.

                          Purpose and Summary

    H.R. 1544, the Faster and Smarter Funding for First 
Responders Act of 2005, reforms the manner in which the 
Department of Homeland Security (DHS or the Department) issues 
Federal grants to enhance the ability of States, local 
governments, regions, Indian tribes, and first responders to 
prevent, prepare for, respond to, mitigate against, and recover 
from threatened or actual acts of terrorism. H.R. 1544 does not 
create a new grant program. Rather, it establishes a common set 
of rules for three of the Department's existing terrorism 
preparedness grant programs--the State Homeland Security Grant 
Program (SHSGP), the Urban Area Security Initiative (UASI), and 
the Law Enforcement Terrorism Prevention Program (LETPP). At 
its most fundamental level, H.R. 1544 is designed to expedite 
the delivery of Federal terrorism preparedness assistance to 
first responders where it is needed most and, at the same time, 
end undisciplined homeland security spending. It does so by: 
(1) requiring States, territories, regions, localities, Indian 
tribes, and first responders to decide how to spend their 
terrorism preparedness grant funding before they submit their 
applications; (2) allocating grant awards to States, 
territories, regions, and directly eligible tribes based on an 
assessment of risk and need; (3) ensuring that grant recipients 
use their awards to achieve, maintain, and enhance clear and 
measurable essential capabilities, and providing a substantial 
role for State and local governments and first responders in 
determining such capabilities; (4) requiring and incentivizing 
States to pass through their awarded funds to localities within 
tight time-frames and penalizing States that fail to do so; (5) 
requiring States to prioritize their allocation of Federal 
anti-terrorism grants to address their greatest threats, 
vulnerabilities, and consequences; and (6) holding grant 
recipients accountable for how they spend their Federal 
terrorism preparedness funds.

                  Background and Need for Legislation

    The need for legislative reform of the current Federal 
terrorism preparedness grant funding process is obvious. 
Several Federal studies and independent analyses have 
identified a myriad of problems with the current system, 
including: (1) the Department's reliance on an arbitrary 
formula--rather than risk or need--to allocate the vast 
majority of its terrorism preparedness grant funds; (2) the 
lack of Federal terrorism preparedness standards or goals to 
guide the expenditure of such funds at the State, local, 
territorial, and tribal levels of government; (3) the slow rate 
of draw-down, or spending, by State and local recipients of 
these Federal grants; and (4) the failure by many States and 
territories to allocate such funds to localities within their 
jurisdictions on the basis of risk and need.

                       DHS Risk-Based Allocation

    Since 2001, the Department has awarded Federal terrorism 
preparedness grant funds to States and territories in a 
reasonable time-frame, but it has done so without any real 
assessment of risk or need (except for UASI). With respect to 
the method of allocation of non-UASI grant funds, the 
Department follows, in part, a formula established by the 
Congress that provides each State and territory with a 
guaranteed minimum amount of funding, regardless of the threat 
to, vulnerability of, and consequences for persons or critical 
infrastructure from acts of terrorism. Specifically, section 
1014(c)(3) of the USA PATRIOT Act, passed by Congress in the 
immediate aftermath of the September 11th attacks, guarantees 
each State 0.75 percent and each territory 0.25 percent of the 
total amount appropriated in a fiscal year for State terrorism 
preparedness grants. For fiscal years 2002 through 2005, the 
Department's Office for Domestic Preparedness determined the 
allocations for the SHSGP and the LETPP grants by using a 
formula with a base amount of 0.75 percent for each State 
(including the District of Columbia and Puerto Rico), and 0.25 
percent for each U.S. territory, with a secondary distribution 
to each State and territory of the balance of the funds on the 
basis of population.
    The USA PATRIOT Act, however, does not require the 
Department to treat these percentages as a base. Instead, for 
fiscal years 2002 through 2004, DHS had the discretion to 
distribute all such funds on the basis of risk, so long as it 
ensured that no State or territory received less than the 
guaranteed minimum of 0.75 percent and 0.25 percent, 
respectively. DHS did not do so, but in its fiscal year 2005 
budget proposal, DHS announced its intention to move toward 
risk-based funding for these programs. However, in the fiscal 
year 2005 Department of Homeland Security Appropriations Act, 
Congress instructed the Department to distribute State homeland 
security grants for such year in accordance with its previous 
methodology, thus limiting DHS' discretion under the USA 
PATRIOT Act.
    This process has created some peculiar anomalies, 
especially with respect to rural America. The current grant 
system--which provides risk-based funds only to urban areas 
(under UASI) and to States based on population--essentially 
ignores the threats, vulnerabilities, and consequences of acts 
of terrorism in rural communities, which contain significant 
critical infrastructure that could be targets of terrorism. The 
disruption to the agricultural and food sectors by biological 
or other acts of terrorism, or the resulting economic and 
health considerations nationwide, are not among the factors 
currently considered in awarding billions of dollars in grant 
funding. H.R.1544 would eliminate this anomaly by requiring a 
risk-based analysis that covers urban, suburban, and rural 
communities, based on objective criteria.

                    Preparedness Standards and Goals

    Until the release in March 2005 of the interim National 
Preparedness Goal, the Department had not established any 
consistent methodology, such as preparedness standards, to help 
guide States and localities determine their preparedness needs. 
Such standards will enable communities to better identify the 
equipment, planning, training, and exercises that they need to 
enhance their terrorism preparedness. Commonsense dictates that 
not all communities need the same equipment or other terrorism 
preparedness resources. A mid-size Midwestern city with nuclear 
power and chemical plants, for example, has different terrorism 
preparedness needs than a smaller, rural community with 
critical infrastructure related to agriculture and food. The 
absence of such standards has led to numerous examples of 
questionable spending by State and local governments (i.e., on 
equipment of no, or only, marginal utility to terrorism 
preparedness).

                Delays in Use of First Responder Funding

    Only a very small portion of awarded funds has been 
utilized to date by State and local recipients, in part, due to 
poor advance planning and other administrative requirements and 
bottlenecks at various levels of government. Since September 
11, 2001, the Administration and Congress have made an enormous 
investment--more than $30 billion--in State and local terrorism 
and natural disaster preparedness programs. With regard to the 
Department's terrorism preparedness programs from fiscal years 
2002 through 2004, State and local governments have spent only 
31 percent of the $6.3 billion awarded by DHS. As a 
consequence, approximately $4.1 billion in such funds remain in 
the pipeline for use by local recipients--with another $2.4 
billion recently added from fiscal year 2005. In fact, 
according to the latest quarterly reports submitted to DHS, 
five metropolitan regions and six transit authorities had not 
spent any fiscal year 2003 UASI grant funds, which are 
purportedly targeted to our Nation's most high-risk areas and 
are due to expire in the next several months.
    One of the principal reasons for the delay in the flow of 
first responder grants is that the planning to spend such 
funding frequently occurs after the grants are actually 
received. Many States have obligated grant funds to local 
governments, notwithstanding the absence of a plan for how they 
actually would spend the money. In such cases, localities have 
waited to begin the planning process until after they received 
confirmation of the exact amount of the grant and permission 
from the State to spend it.

                      State Risk-Based Allocation

    Almost one-third of all States have allocated the 
Department's terrorism preparedness grant funds to their 
localities without regard to need or risk (other than 
population), and those States that have allocated funds on the 
basis of risk or need have not followed any standard approach 
in doing so. Under Federal law, States must obligate or pass 
through eighty (80) percent of the funds received under all 
grant programs. With respect to method of obligation, many 
States follow the Department's example of providing a base 
amount to each county, with a secondary distribution on the 
basis of population. In other words, the same lack of 
assessment of risk and need at the Federal level exists in the 
method used by many States to pass through the funding from DHS 
to their localities.
    H.R. 1544 addresses these and other problems with the 
Department's grant-making system. The Committee strongly 
believes that it is important to put the need for these reforms 
into a broader context. Arming our first responders with the 
best technologies, equipment, training, and exercises to 
respond in the event of a catastrophic terrorist attack is 
vital for protection of our Nation. But our top priority must, 
above all, be to prevent the attacks that would require our 
first responders to act. The Committee has stressed this 
overriding objective throughout its activities.
    Good intelligence on the threat posed by foreign and 
domestic terrorists can help prevent or deter attacks. 
Provisions in H.R. 1544 that allow grant funds to be used to 
establish or enhance mechanisms for sharing terrorism threat 
information will assist first responders in preventing, 
disrupting, or deterring potential terrorist attacks. Such a 
result is far preferable to having our police officers, 
firefighters, and emergency medical services personnel put 
their lives in danger in responding to a terrorist attack.
    Since the attacks of September 11, 2001, our Nation has 
greatly bolstered its terrorism response capabilities. H.R. 
1544 will contribute significantly to that ongoing effort. The 
Nation must continue to strengthen its defenses, including the 
capabilities of our law enforcement and intelligence 
communities, understanding that the key to effective response 
will often be enhanced awareness and preparedness. Balancing 
resources allocated to each of those purposes will be essential 
to protecting the American people and territory for the 
foreseeable future, and to reducing the chances that our first 
responders will again be put at risk while responding to 
another catastrophic attack.

                                Hearings

    On Tuesday, April 12, 2005, the Subcommittee on Emergency 
Preparedness, Science, and Technology held an oversight hearing 
entitled ``The Need for Grant Reform and The Faster and Smarter 
Funding for First Responders Act of 2005.'' The Subcommittee 
received testimony from: Mr. J. Richard Berman, Assistant 
Inspector General for Audits, Office of Inspector General, U.S. 
Department of Homeland Security; Dr. William O. Jenkins, Jr., 
PhD., Director, Homeland Security and Justice Issues, 
Government Accountability Office; Dr. Veronique de Rugy, PhD., 
Fellow, American Enterprise Institute; The Honorable Bryan E. 
Beatty, Secretary, North Carolina Department of Crime Control 
and Public Safety; Mr. Michael Chapman, Director, Missouri 
Office of Homeland Security; and Mr. David L. Miller, 
Administrator, Iowa Homeland Security and Emergency Management 
Division.
    On Tuesday, April 14, 2005, the Full Committee held an 
oversight hearing entitled ``Grant Reform: The Faster and 
Smarter Funding for First Responders Act of 2005.'' The 
Committee received testimony from: The Honorable Lee. H. 
Hamilton, Vice Chair, National Commission on Terrorist Attacks 
Upon the United States; Ms. Mary Fetchet, Founding Director, 
Voices of September 11; Inspector Louis P. Cannon, Testifying 
on Behalf of the National Fraternal Order of Police; Chief 
Gregg Lord, Director, National Association of Emergency Medial 
Technicians, Division Chief--EMS, Cherokee County Fire-
Emergency Services; and Mr. Kevin B. O'Connor, Associate to the 
General President, International Association of Fire Fighters.

                        Committee Consideration

    H.R. 1544 was introduced by Mr. Cox, Mr. Thompson, and 32 
co-sponsors on April 12, 2005, and referred to the Committee on 
Homeland Security. Within the Committee on Homeland Security, 
H.R. 1544 was referred to the Subcommittee on Emergency 
Preparedness, Science, and Technology.
    On April 19, 2005, the Subcommittee on Emergency 
Preparedness, Science, and Technology met in open markup 
session and ordered H.R. 1544 favorably reported to the Full 
Committee for consideration, amended, by a unanimous voice 
vote. An Amendment in the Nature of a Substitute offered by Mr. 
King (#1), was AGREED TO by Voice Vote.
    On April 21, 2005, the Full Committee met in open markup 
session and ordered H.R. 1544 favorably reported to the House 
of Representatives, amended, by a unanimous voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto.
    H.R. 1544, to provide faster and smarter funding for first 
responders, and for other purposes; was ordered favorably 
reported to the House, amended, by voice vote; as follows:
    The text of H.R. 1544 with an Amendment in the Nature of a 
Substitute as favorably reported by the Subcommittee on 
Emergency Preparedness, Science, and Technology(#1), was AGREED 
TO, amended, by Voice Vote. A unanimous consent request to 
consider the Amendment in the Nature of a Substitute base text 
for purposes of amendment, was Not Objected to. An Amendment 
offered by Mr. Rogers to the Amendment in the Nature of a 
Substitute offered by Mr. King (#1A), at the end of the 
amendment to add a new section entitled ``GAO Report on an 
Inventory and Status of Homeland Security First Responder 
Training,'' was AGREED TO by Voice Vote.
    An Amendment offered by Mr. Markey to the Amendment in the 
Nature of a Substitute offered by Mr. King (#1B), in section 
1801(9) to insert a new subparagraph (C) relating to Urban Area 
Security Initiative, was WITHDRAWN by Unanimous Consent.
    An Amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute offered by Mr. King (#1C), at the 
end of section 1803 insert a new subsection (f) relating to 
notice and comment requirements, was WITHDRAWN by Unanimous 
Consent.
    An Amendment offered by Mrs. Lowey to the Amendment in the 
Nature of a Substitute offered by Mr. King (#1D), at the end of 
the amendment to add new sections entitled ``Sec. 6. National 
Strategy for Interoperability Communications'' and ``Sec. 7 
Interoperable Communications Technology Grant Program,'' was 
NOT AGREED TO by a recorded vote of 13 yeas and 19 nays (Roll 
call Vote No. 3).


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    H.R. 1544, the Faster and Smarter Funding for First 
Responders Act of 2005, is intended to: (1) reform the manner 
in which the Department of Homeland Security issues terrorism 
preparedness grants to enhance the ability of States, 
territories, regions, local governments, Indian tribes, and 
first responders to prevent, prepare for, respond to, mitigate 
against, and recover from acts of terrorism; (2) direct the 
Secretary to regularly update or revise the established 
``essential capabilities'' that different types of communities 
should possess, or to which they should have access, based on 
their relevant terrorism risk factors; (3) improve the grant 
process by streamlining and speeding the delivery of Federal 
grant assistance to first responders to build such capabilities 
in a measurable, comprehensive, and flexible fashion; and (4) 
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 in the 
event of a terrorist attack.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
1544, the Faster and Smarter Funding for First Responders Act 
of 2005, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                                    April 28, 2005.
Hon. Christopher Cox,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1544, the Faster 
and Smarter Funding for First Responders Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Jullie 
Middleton (for federal costs) and Melissa Merrell (for the 
state and local impact).
            Sincerely,
                                               Douglas Holtz-Eakin.
    Enclosure.

H.R. 1544--The Faster and Smarter Funding for First Responders Act of 
        2005

    Summary: CBO estimates that enacting H.R. 1544 would have 
no significant impact on the federal budget. The bill would 
authorize the Secretary of the Department of Homeland Security 
(DHS) to change the criteria used to distribute funding--but 
not the total amount of funding--for three existing first-
responder grant programs established after September 11, 2001--
the State Homeland Security, the Law Enforcement Terrorism 
Prevention, and the Urban Area Security Initiative grant 
programs. In addition, the bill would establish the First 
Responder Grants Board, which would evaluate and prioritize 
applications for grants. Finally, H.R. 1544 would establish 
standards for the quality and content of first-responder 
equipment and training.
    Enacting H.R. 1544 would not affect direct spending or 
revenues. H.R. 1544 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA). Because the bill would change how certain grants for 
first responders are allocated to states, localities, and 
Indian tribes, some states would receive more funding and 
others less than under current law. Any costs to state, local, 
and tribal governmental for participating in those programs 
would be incurred voluntarily.
    Estimated cost to the Federal Government: CBP estimates 
that enacting H.R. 1544 would have no significant impact on the 
federal budget. 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). Almost $9 billion has 
been appropriated for these first-responder grants since fiscal 
year 2003, including about $2.7 billion in fiscal year 2005. 
That law authorizes the appropriation of such sums as necessary 
for first-responder grants throughfiscal year 2007. H.R. 1544 
would not extend that authorization, nor would it significantly affect 
the rate at which appropriations are spent.
    Intergovernmental and private-sector impact: H.R. 1544 
contains no intergovernmental mandates as defined in UMRA. The 
bill would make several changes to existing grant program for 
state, local and tribal governments. First, it would change the 
requirements for participating in at least three current 
programs--the State Homeland Security Grant, the Law 
Enforcement Terrorism Prevention Program, and the Urban Area 
Security Initiative--and change how those funds are allocated. 
Although some states would receive less funding than in 
previous years and others would receive more, this bill would 
not change the overall funding level and each state would 
receive a minimum amount of the total funds. This bill would 
allow certain metropolitan areas to apply for funds directly 
and would expand eligible activities to include covering the 
costs of some overtime activities during heightened threat 
alerts and training activities.
    The bill also would authorize DHS to transfer funds 
directly to the local recipients, reduce the portion of grants 
retained by the state, or impose additional restrictions if 
states fail to provide funds to local first responders in a 
timely manner. States would be required to provide 80 percent 
of the funds or resources to local recipients within 45 days of 
receipt. If states fail to comply with that requirement, funds 
could be allocated directly to local jurisdictions. Any costs 
to state, local, or tribal governments as a result of these 
changes to the grant programs would be incurred voluntarily.
    State, local, and tribal governments would benefit from 
other provisions of the bill that require DHS to identify, with 
input from local first responders and trade representatives, 
essential capabilities and voluntary standards for equipment 
and training.
    Previous CBO estimate: On April 22, 2005, CBO transmitted a 
cost estimate for S. 21, the Homeland Security Grant 
Enhancement Act of 2005, as ordered reported by the Senate 
Committee on Homeland Security and Governmental Affairs on 
April 13, 2005. S. 21 would authorize the Secretary of the 
Department of Homeland Security to change the criteria used to 
distribute funding for the State Homeland Security, the Law 
Enforcement Terrorism Prevention, and the Urban Area Security 
Initiative grant programs. Under the bill, these three grant 
programs would be governed by the provisions of a new 
initiative known as the Threat-Based Homeland Security Grant 
Program. In addition, this bill would authorize the 
appropriation of $2.9 billion a year for first-responder grants 
in 2006 and 2007, and such sums as are necessary for each 
subsequent year for first-responder grants. Assuming 
appropriation of the authorized and estimated amounts, CBO 
estimates that implementing S. 21 would cost about $9.9 billion 
over the 2006-2010 period.
    Estimate prepared by: Federal Costs: Julie Middleton. 
Impact on State, Local, and Tribal Governments: Melissa 
Merrell. Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    The Federal Advisory Committee Act (5 U.S.C. App.), 
including subsections (a), (b), and (d) of section 10 of that 
Act, and section 552b(c) of title 5, U.S.C., will apply to the 
Task Force on Terrorism Preparedness for First Responders.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 1, which grants Congress the power 
to provide for the common Defense of the United States.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


              SECTION 1. SHORT TITLE AND TABLE OF CONTENTS

    This section cites the measure as ``Faster and Smarter 
Funding for First Responders Act of 2005.''

                          SECTION 2. FINDINGS

    This section contains fourteen (14) findings of fact 
supporting the need for the legislation.

       SECTION 3. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS

    Subsection (a) of section 3 amends the ``Homeland Security 
Act of 2002'' (Public Law No. 107-296) by adding at the end a 
new Title XVIII--Funding for First Responders. This new title 
includes seven sections. These sections--sections 1801-1807--
are as follow:

Section 1801--Definitions

    This section provides a number of definitions. Among other 
definitions, the term ``region'' is defined to include only 
those geographic areas consisting of two or more states or 
local governments that have a combined population of 1,650,000 
or have an area of not less than 20,000 square miles. Regions 
also may be designated by the Secretary with the consent of the 
State or States in which the local governments that comprise 
the region are located. This section also adopts the definition 
of ``emergency response providers'' in section 2(6) of the 
Homeland Security Act as the definition of ``first 
responder''for purposes of this bill (although in subsection 
(b) of this section the bill amends the Homeland Security Act 
definition to make clear that the fire service and governmental 
and non- governmental organizations and personnel are included 
in the definition of ``emergency response providers'').
    This section also adopts the definition of ``emergency 
preparedness'' in section 602 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act. Moreover, it 
defines the term ``terrorism preparedness,'' which is used 
extensively throughout H.R. 1544, to mean ``any activity 
designed to improve the ability to prevent, prepare for, 
respond to, mitigate against, or recover from threatened or 
actual terrorist attacks.''

Section 1802--Faster and Smarter Funding for First Responders

    Subsection (a) of this section states that the provisions 
of new Title XVIII apply only to those grants that the 
Department of Homeland Security provides to States, regions, or 
directly eligible tribes for the primary purpose of improving 
the ability of first responders to prevent, prepare for, 
respond to, mitigate against, or recover from threatened or 
actual terrorist attacks, especially those involving weapons of 
mass destruction. Specifically, such terrorism preparedness 
grants are those administered under the State Homeland Security 
Grant Program (SHSGP), the Law Enforcement Terrorism Prevention 
Program (LETPP), and the Urban Area Security Initiative (UASI).
    Subsection (b) expressly excludes from coverage of this 
title all non-DHS Federal grants, as well as the DHS 
firefighter assistance grants and the emergency management 
planning and assistance grants. The Committee notes that grants 
awarded under critical infrastructure programs, the Citizen 
Corps Program, and the Metropolitan Medical Response System are 
not covered under H.R. 1544.

Section 1803--Covered Grant Eligibility and Criteria

    This section provides that States, regions, and directly 
eligible tribes may apply for covered grants. The Committee 
notes that, although States will continue to play a central 
role in homeland security planning and coordinating grant fund 
distribution to first responders at the local level, H.R. 1544 
ensures that the unique preparedness needs of regions and 
Indian tribes can be addressed by the Secretary through 
regional and tribal grants. For purposes of the grant 
application process, only certain geographic areas will qualify 
as regions and only a limited number of Indian tribes will 
qualify as directly eligible.
    H.R. 1544 recognizes the primary role of States in the 
Nation's terrorism preparedness efforts. Accordingly, this 
section requires that, to be eligible to receive a covered 
grant, a State must first submit for the Secretary's approval a 
comprehensive three-year state homeland security plan tied to 
the achievement, maintenance, and enhancement of the essential 
capabilities established by the Secretary. Specifically, the 
plan must be developed in consultation with, and subject to 
appropriate comment by, local governments, tribes, and first 
responders within the State, and must--
     describe the essential capabilities that 
communities within the State should possess, or to which they 
should have access, based on the terrorism risk factors 
relevant to such communities;
     demonstrate the extent to which the State has 
achieved its essential capabilities;
     demonstrate the needs of the State necessary to 
achieve, maintain, or enhance its essential capabilities;
     prioritize the State's needs based on threat, 
vulnerability, and consequences; and
     describe how the State intends to address its 
needs at the city, county, regional, tribal, state, and 
interstate levels, with particular emphasis on regional 
planning and coordination.
    A State may revise its previously approved homeland 
security plan subject to the Secretary's approval.
    The Committee notes that there is a category of private, 
not-for-profit institutions, as described in section 501(c)(3) 
of the Internal Revenue Code of 1986, that provides services 
that are at high risk of being the target of terrorist attacks. 
The Committee recommends that, in their state homeland security 
planning efforts, States should specifically consider the risk 
to such institutions.
    The Secretary may not approve any state, regional, or 
tribal application that is inconsistent with any such state 
plan. Accordingly, to be eligible for a covered grant, a region 
must submit its application to each State of which any part is 
included in the region for review and concurrence. Within 
thirty (30) days of its receipt, the State must either submit 
the region's application to the Secretary or notify the 
Secretary that the application is inconsistent with the State's 
homeland security plan and provide an explanation of the 
reasons thereof. If the Secretary approves a regional 
application, then the Secretary must distribute the regional 
award to the State that submitted the region's application. 
Within forty-five (45) days after receiving the regional award, 
the State must pass through to the region all covered grant 
funds or resources purchased with such funds, except those 
necessary for the State to fulfill its responsibilities with 
respect to the regional application. Under no circumstances may 
the State pass through less than eighty (80) percent of the 
regional award.
    To be eligible for a covered grant, a directly eligible 
tribe must submit its application to each State within the 
boundaries of which any part of such tribe is located. The 
State must simultaneously submit to DHS the application of the 
directly eligible tribe with its application. Although the 
State has no formal concurrence responsibility as with regions, 
it has the opportunity to submit comments to the Secretary on 
the consistency of a directly eligible tribe's application with 
the State's homeland security plan. The Secretary has final 
authority to determine such consistency and to approve the 
tribe's application.
    All applications must adhere to the following general 
requirements. An applicant must include in its application at a 
minimum: (1) the purpose for which such funds are being sought 
and the reasons why such funds are needed to meet essential 
capabilities; (2) a description of how, by reference to the 
applicable state homeland security plan, the allocation of such 
funds would assist it in fulfilling the essential capabilities 
specified in such plan; (3) a statement whether a mutual aid 
agreement is applicable; (4) a capital budget; and (5) a 
statement on how the applicant intends to meet the matching 
requirement.
    Moreover, in its application, a State must include a 
description of how it intends to allocate covered grant funds 
to regions, local governments, and Indian tribes. If the 
applicant is a region, the region's application must include 
the information required to be submitted by a State as 
described above, as well as: (1) a description of the region 
and a specification of all participating and non-participating 
local governments within it; (2) an explanation of which 
governmental entity will administer the funds; and (3) the 
designation of a regional liaison. And, if the applicant is a 
directly eligible tribe, the tribe's applicant must designate a 
specific individual to serve as a tribal liaison.
    The Committee believes that the sharing of resources, 
training, planning, personnel, and equipment among neighboring 
jurisdictions through mutual aid agreements and regional 
cooperation enhances our Nation's terrorism preparedness. Such 
regional cooperation--both intra- and inter-State--should be 
supported, where appropriate, through grants from the 
Department. The Committee is encouraged by the long-standing, 
well-established network of intra- and inter-State regional 
entities. Indeed, many multi-jurisdictional councils of 
governments, regional planning commissions and organizations, 
development districts, and consortiums have responsibility for 
implementing emergency response plans and coordinating cross-
jurisdictional response capabilities. The Committee urges the 
Department to support the continued development of such intra- 
and inter-State entities.
    The Committee also recognizes that mutual aid agreements 
that include Indian tribes involve additional issues particular 
to Indian Country, such as tribal sovereignty, tribal sovereign 
immunity, and complicated jurisdictional relationships between 
the Federal, State, and tribal governments. This is especially 
true for Indian tribes adjacent to high-risk, urban areas and 
international borders. For this and other reasons, the 
Committee urges the Secretary to assist all communities, 
including Indian tribes located contiguous to major 
metropolitan areas, in developing and implementing mutual aid 
agreements. In doing so, the Committee further urges the 
Secretary to utilize the mutual aid matrix that the Directorate 
for Emergency Preparedness and Response is required to 
establish pursuant to the Intelligence Reform and Terrorism 
Prevention Act of 2004. Specifically, section 7406 of that Act 
directs the Directorate to identify and catalog existing 
agreements and to disseminate the best examples to States, 
local governments, and Indian tribes as models for such 
governments to emulate.

Section 1804--Risk-Based Evaluation and Prioritization

    This section establishes the First Responder Grant Board 
(Grant Board) to assist the Secretary in awarding covered 
grants to States, territories, regions, and directly eligible 
Indian tribes. The Secretary (or Deputy Secretary) will chair 
the Grant Board, which will consist of the Department's Under 
Secretaries for Emergency Preparedness and Response, Border and 
Transportation Security, Information Analysis and 
Infrastructure Protection, and Science and Technology, the 
Director of the Office for Domestic Preparedness, and the 
Administrator of the U.S. Fire Administration. Specifically, 
the Grant Board shall be responsible for evaluating and 
prioritizing all covered grant applications, based upon the 
degree to which they would, by achieving, maintaining, and 
enhancing the essential capabilities of the applicants on a 
nationwide basis, lessen the threat to, vulnerability of, and 
consequences for persons (including transient commuting and 
tourist and seasonal populations) and critical infrastructure 
from a terrorist attack. In evaluating threat for such 
purposes, the Grant Board shall give greater weight to 
terrorist threats based on their specificity and credibility, 
including any pattern of repetition.
    The Grant Board must consider a number of factors during 
this evaluation and prioritization process. The Grant Board 
must base its evaluation and prioritization on the most current 
risk assessment of the threats of terrorism against the United 
States available from the Directorate for Information Analysis 
and Infrastructure Protection. Moreover, the Grant Board must 
consider various types of threats, such as biological 
(including human and animal infectious diseases), nuclear, 
chemical, and radiological, and numerous critical 
infrastructure sectors in all areas of the Nation, urban and 
rural. The sixteen (16) critical infrastructure sectors listed 
in H.R. 1544, which correspond roughly to those contained in 
the President's Interim National Infrastructure Protection 
Plan, encompass a large number of critical infrastructure 
sectors, including agriculture and food, banking and finance, 
energy, public health and health care, government facilities, 
transportation systems, and water. These sectors are broad 
categories, within which there are many distinct components. 
For example, the transportation systems sector includes mass 
transit, such as the Washington Metropolitan Area Transit 
Authority, the State of New York's Metropolitan Transit 
Authority, and the Chicago Transit Authority, as well as 
aviation, maritime, ground/surface, and rail systems. Moreover, 
the dam sector includes flood control levees, especially when 
their destruction would cause substantial loss of life and 
property. With respect to the national monuments and icons 
sector, the Committee notes that it is the people who visit or 
are near such sites, not their symbolic value, that merit 
consideration in the risk-based analysis.
    The purpose of incorporating such a variety of critical 
infrastructure sectors into H.R. 1544 is not to mandate, or 
otherwise require, the Grant Board to award funds to each 
sector. Rather, it is to ensure that the Grant Board considers 
the different types of threats and vulnerabilities relating to 
all of our Nation's critical infrastructure when determining 
the proper allocation of terrorism preparedness grants for 
first responders. For example, the inclusion of the sectors 
such as agriculture and food, which are primarily located or 
originate in rural communities, should ensure that the Grant 
Board does not overlook such communities. By requiring the 
Grant Board to evaluate the risk to all critical infrastructure 
sectors, including those in rural America, H.R. 1544 will avoid 
a situation in which the Department allocates its terrorism 
preparedness resources solely to large, urban jurisdictions.
    Nevertheless, the Committee also recognizes that urban 
areas make inviting targets. Specifically, it is clear that 
cities with large ports or borders present unique homeland 
security challenges. The proximity of these communities to our 
Nation's major points of entry makes them potentially the first 
targets of opportunity for terrorists who manage to enter the 
country, and also provide state and local officials the first 
opportunity to identify and interdict such terrorists before 
they carry out acts of terrorism. Moreover, in port and border 
communities, the potential harm to the national economy from 
acts of terrorism would be significant and extend beyond those 
communities. Therefore, the Committee encourages the Grant 
Board to consider the volume of border crossings and commerce 
moving across these borders and through port communities when 
evaluating and prioritizing covered grant applications.
    After evaluating and prioritizing all covered grant 
applications on the basis of risk and need, the Grant Board 
shall then ensure that each State, territory, and up to twenty 
(20) directly eligible tribes receive no less than a defined 
minimum amount of funding. Specifically, this section requires 
DHS to allocate such grants based on risk and then provide 
additional funds for those applicants that have not met a 
minimum threshold of funding. The minimum threshold for each of 
the States, other than the Virgin Islands, American Samoa, 
Guam, and the Northern Mariana Islands, is 0.25 percent of the 
total funds available for covered grants that fiscal year. 
Because of the unique terrorism preparedness needs of States 
with international borders, this section provides a minimum 
threshold of 0.45 percent of the total funds available for 
covered grants that fiscal year for each State that has a 
significant international land border or adjoins a body of 
water within North America through which an international 
boundary line extends. The minimum threshold for each of the 
Virgin Islands, American Samoa, Guam, and the Northern Mariana 
Islands is 0.08 percent of the total funds available for 
covered grants that fiscal year. The minimum threshold for 
directly eligible tribes, collectively, is 0.08 percent of the 
total funds available for covered grants that fiscal year. This 
minimum threshold, however, will not apply in a fiscal year if 
the Secretary receives less than five (5) applications for such 
fiscal year from such tribes or does not approve at least one 
(1) such application.
    In awarding covered grants to regions, the Committee urges 
the Grant Board to ensure, to the maximum extent practicable, 
that such funds are distributed among the jurisdictions that 
could reasonably be expected to provide support to the region 
in the event of a terrorist attack. Moreover, the Committee 
believes that such distributions should be made on the basis of 
the risk profile of sub- areas within each region.

Section 1805--Task Force on Terrorism Preparedness for First Responders

    This section requires that the Secretary of DHS establish a 
twenty-five (25) member advisory body pursuant to section 
871(a) of the HSA for the purpose of assisting the Secretary in 
updating, revising, or replacing the essential capabilities. 
The Secretary, in appointing the twenty-five (25) members of 
this advisory body--to be known as the Task Force on Terrorism 
Preparedness for First Responders (Task Force)--should, to the 
greatest extent practicable, include a geographic (including 
urban and rural) and substantive cross-section of governmental 
and non-governmental first responder disciplines from the state 
and local levels and representatives from both management and 
labor. The Secretary also must coordinate the selection of the 
Task Force's members who are health professionals, including 
emergency medical professionals, with the Secretary of Health 
and Human Services.
    The Committee believes that membership of the Task Force 
should encompass all first responder disciplines. For example, 
the Committee urges the Secretary to appoint Task Force members 
knowledgeable about emergency medical services (EMS). EMS 
responders provide extrication, rescue, and emergent care after 
a terrorist incident; they are critical to our Nation's 
terrorism preparedness. However, based on the findings of 
recent reports, including one issued by the Department's Office 
of State and Local Government Coordination and Preparedness, 
EMS concerns often do not receive the same level of attention 
as those of other first responder disciplines. The Committee 
also urges the Secretary to appoint an animal health expert to 
provide the Task Force with an understanding of the 
preparedness issues involved in the transmission of animal and 
plant diseases in agricultural communities and the protocols 
for the quarantine of animals and humans.
    To achieve its advisory mission, the Task Force must submit 
for the Secretary's consideration a report within twelve (12) 
months of its establishment, and every two (2) years 
thereafter, on recommended essential capabilities for different 
types of communities. Among other things, the Task Force's 
report must include a priority ranking of essential 
capabilities and a methodology by which a state or local 
government can determine whether it possesses or has access to 
these essential capabilities. When making its recommendations 
for essential capabilities to the Secretary, the Task Force 
must ensure that such capabilities: (1) are made within the 
context of a comprehensive state emergency management system; 
(2) are consistent with those of a Federal working group to be 
established by the Department of Health and Human Services; and 
(3) take into account any capabilities that State or local 
officials have determined to be essential and have undertaken 
to prevent or prepare for terrorist attacks since September 11, 
2001. For instance, the Task Force should evaluate whether 
regional air support constitutes an essential capability for 
certain communities.

Section 1806--Use of Funds and Accountability Requirements

    This section provides a list of permitted and prohibited 
uses of grant funds, establishes specific time-lines for the 
expenditure of covered grant funds, and creates a series of 
reporting requirements for both DHS and state, regional, and 
tribal grant recipients.
    This section provides that a covered grant may be used for 
appropriate activities as determined by the Secretary of DHS, 
including specifically the following: purchasing and upgrading 
of equipment (including computer software); exercises and 
training; developing or updating response plans; establishing 
or enhancing mechanisms for information sharing; systems 
architecture and engineering, program planning and management, 
and product evaluation; personnel costs directly attributable 
to elevations in the threat alert level of the Homeland 
Security Advisory System by the Secretary, or an equivalent 
elevation in the threat alert level issued by a State, region, 
or local government with the Secretary's approval; classified 
information receipt and storage costs; critical infrastructure 
protective measures, up to $1,000,000 per project or, if 
approved by the Secretary, up to ten (10) percent of the total 
amount of the covered grant; costs associated with the purchase 
of commercially available equipment that complies with national 
voluntary consensus standards and that facilitates 
interoperability of emergency communications; developing 
educational curricula for first responders to ensure their 
preparedness for terrorist attacks; training and exercises to 
assist public elementary and secondary schools in developing 
terrorism preparedness programs; paying three (3) percent of 
the administrative expenses directly related to administration 
of a grant; paying for the conduct of any activity permitted 
under LETPP; and other activities as determined by the 
Secretary.
    In order to ensure that our Nation's first responders 
fulfill their new terrorism preparedness mission in an 
effective and efficient manner, grant recipients may only 
purchase equipment, training, and exercises in accordance with 
authorized lists compiled by the Department. The Department's 
Office for Domestic Preparedness (ODP) has an Authorized 
Equipment List (AEL) that delineates specific types of 
specialized equipment necessary to enhance our Nation's 
terrorism preparedness. For example, the AEL includes special-
purpose vehicles for the transport of CBRNE terrorism response 
equipment and personnel to incident sites and excludes non-
CBRNE tactical/armored assault vehicles. Through the Law 
Enforcement Support Organization 1033 program operated by the 
Defense Logistic Agency (DLA), over 145 jurisdictions in 30 
States currently use the M-113 Family of Vehicles (FOV) for 
first responder purposes. Indeed, the M-113 FOV can be used for 
a variety of purposes, including as emergency response 
vehicles, mobile command posts, fire suppression, or fire 
rescue vehicles. The M-133 FOV, however, is not part of the 
AEL. Because of its wide-spread use and easy adaptability, the 
Committee urges the Department to consider updating the AEL to 
include the M-113 FOV.
    The Committee also encourages grant recipients, such as 
firefighters and other firstresponders, to take advantage of 
the Department's ODP/DLA Emergency Responder Equipment Purchase 
Program. This program provides the opportunity for recipients of first 
responder grants to procure commercially available emergency response 
equipment through the Defense Supply Center Philadelphia (DSCP). The 
equipment offered by the DSCP's prime vendors includes equipment on the 
AEL.
    Covered grants also may be used to provide a reasonable 
stipend to paid-on-call or volunteer first responders who are 
not otherwise compensated for travel to or participation in 
training in the use of equipment and on prevention activities, 
provided that such reimbursement is not considered compensation 
for purposes of rendering such a first responder an employee 
under the Fair Labor Standards Act.
    A covered grant, however, may not be used: to supplant 
state or local funds; to construct buildings or other physical 
facilities; to acquire land; or to alleviate any state or local 
government cost sharing contribution. Notwithstanding the 
foregoing, this section expressly permits state and local 
governments to use covered grant funds in a manner that 
enhances first responder preparedness for emergencies and 
disasters unrelated to acts of terrorism, so long as such use 
assists such governments in achieving the essential 
capabilities for terrorism preparedness established by the 
Secretary.
    This section also requires that state recipients of covered 
grants pass-through eighty (80) percent of their funds to local 
governments, first responders, and other local groups not later 
than forty-five (45) days after their receipt of such funds. 
State recipients that fail to pass-through these funds may face 
reduced payments, termination of payments, or other 
restrictions. Further, upon a specific and detailed showing, 
the Secretary has authority to re-direct a portion of a 
delinquent State's grant amount to a local government directly, 
consistent with the state plan and application. This section 
requires that, two (2) years following the enactment of this 
legislation, all grant recipients--States, regions, and 
directly eligible tribes--must contribute, or match, at least 
twenty five (25) percent of the cost of the activities carried 
out with covered grants. This matching requirement may be 
satisfied with in-kind contributions of goods or services.
    Further, this section requires each recipient to submit to 
the Secretary annual reports describing the use of covered 
grant funds, the achievement of essential capabilities, and 
remaining needs. A state recipient also may submit a quarterly 
report, which identifies the amount obligated to, and expended 
by, such recipient and a summary description of the items 
purchased, in exchange for a two (2) percent increase in the 
Federal match. Finally, this section also requires an annual 
report from the Secretary to the Congress containing an 
analysis of the Nation's progress in achieving, maintaining, 
and enhancing essential capabilities.

Section 1807--National Standards for First Responder Equipment and 
        Training

    This section adds to the HSA provisions requiring the 
Secretary, in consultation with the Under Secretaries for 
Science and Technology and Emergency Preparedness and Response, 
the Director of the Office for Domestic Preparedness, and 
relevant public and private sector groups, to develop, 
promulgate, and update as necessary national voluntary 
consensus standards for first responder equipment and training. 
In establishing any national voluntary consensus standards that 
involve or relate to health professionals, including emergency 
medical professionals, the Secretary also must coordinate with 
the Secretary of Health and Human Services.
    With regard to equipment, the standards for the 
performance, use, and validation should be focused on 
maximizing interoperability, interchangeability, durability, 
flexibility, efficiency, portability, and safety. Such 
standards also should cover all appropriate uses of the 
equipment. Applicants who seek to purchase or upgrade equipment 
with covered grants must either buy items that meet these 
standards or explain why non-standard items will be superior. 
With regard to training, the standards should ensure that 
training is consistent with the principles of emergency 
preparedness for all hazards.
    The Committee stresses the importance of developing 
national voluntary consensus standards that are dynamic, and 
that will encourage a wide variety of creative, private sector-
generated solutions to homeland security challenges. 
Appropriate national voluntary consensus standards will help 
private sector entities identify potential markets and their 
characteristics. To the extent that they do, they can serve as 
an indirect stimulus to economic growth, while ensuring that 
first responders get the equipment and training most likely to 
help them prevent, prepare for, respond to, mitigate against, 
and recover from acts of terrorism.
    In addition to the organizations identified in section 
1806(c), the Committee is aware of numerous private and not-
for-profit organizations working with State and local 
governments to implement first responder equipment and training 
standards. The Secretary should consult with as many of these 
organizations as practicable in the development of the national 
voluntary consensus standards.
    As noted above, subsection (b) of section 3 of H.R. 1544 
amends the Homeland Security Act definition to make clear that 
the fire service and governmental and non-governmental 
organizations and personnel are included in the definition of 
``emergency response providers.'' The Committee believes that 
this change to the definition of ``emergency response 
providers'' covers non-governmental organizations, such as the 
American Red Cross and the National Voluntary Organizations 
Active in Disaster, that are signatories to, and have assigned 
responsibilities under, domestic preparedness and response 
incident plans. In addition, the Committee notes that the 
definition of ``emergency response providers'' in the Homeland 
Security Act includes a reference to ``emergency medical'' 
providers. The Committee believes, and for purposes of H.R. 
1544 intends, that the ``emergency medical'' language in the 
definition of ``emergency response providers,'' incorporated 
into the definition of ``first responders,'' should be 
construed broadly to include any personnel that would be called 
upon to respond to suspicious outbreaks of diseases that could 
be caused by acts of bioterrorism.

                    SECTION 4. SUPERSEDED PROVISION

    This section provides that this Act supersedes section 
1014(c)(3) of the USA PATRIOT Act (Public Law 107-56) (dealing 
with the allocation of terrorism grant funds).

                          SECTION 5. OVERSIGHT

    This section directs the Secretary to establish an Office 
of the Comptroller to oversee the grant distribution process 
and the financial management of ODP. The Department's Task 
Force on State and Local Homeland Security Funding (Task 
Force), chaired by Massachusetts Governor Mitt Romney, included 
this and many other recommendations in its report examining the 
distribution, and use, of terrorism preparedness funds by State 
and local governments. The Task Force also recommended that 
Congress waive the Cash Management Improvement Act (CMIA) in 
order to expedite funding for the primary costs of equipment, 
training, and exercises. The Committee is committed to 
addressing and overcoming the bureaucratic obstacles that delay 
first responder funding. Indeed, the Committee issued its own 
report in April 2004 on the delays in first responding funding. 
Given the complexity of issues involved in waiving the CMIA and 
the possible unintended consequences of doing so, the Committee 
directs the Department, in consultation with the Department of 
Treasury, to examine the waiver question and to draft a report, 
with specific recommendations. The Department shall submit this 
report to Congress within 90 days of the enactment of this Act.

                         SECTION 6. GAO REPORT

    This section directs the Comptroller General of the United 
States to report to Congress on the first responder training 
programs of the Department of Homeland Security and other 
Departments and agencies of the Federal government. 
Specifically, the report shall, among other things, assess the 
effectiveness of the structure, coordination, and organization 
of such training programs, identify any duplication or 
redundancy among them, describe how States and local 
governments have used DHS terrorism preparedness grants for 
training purposes, and discuss the role of State, local, and 
DHS' first responder training institutions in the design and 
implementation of terrorism preparedness training courses. For 
purposes of this report, the Committee recommends that the 
Government Accountability Office consider the effectiveness and 
expertise of national programs that provide training in local 
communities and regional training institutions.

         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 italic, 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 XVIII--FUNDING FOR FIRST RESPONDERS

Sec. 1801. Definitions.
Sec. 1802. Faster and Smarter Funding for First Responders.
Sec. 1803. Covered grant eligibility and criteria.
Sec. 1804. Risk-based evaluation and prioritization.
Sec. 1805. Task Force on Terrorism Preparedness for First Responders.
Sec. 1806. Use of funds and accountability requirements.
Sec. 1807. National standards for first responder equipment and 
          training.

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, emergency response, emergency 
        medical (including hospital emergency facilities), and 
        related personnel, agencies, and authorities.] includes 
        Federal, State, and local governmental and 
        nongovernmental emergency public safety, law 
        enforcement, fire, emergency response, emergency 
        medical (including hospital emergency facilities), and 
        related personnel, organizations, agencies, and 
        authorities.

           *       *       *       *       *       *       *


               TITLE XVIII--FUNDING FOR FIRST RESPONDERS

SEC. 1801. DEFINITIONS.

  In this title:
          (1) Board.--The term ``Board'' means the First 
        Responder Grants Board established under section 1804.
          (2) Covered grant.--The term ``covered grant'' means 
        any grant to which this title applies under section 
        1802.
          (3) Directly eligible tribe.--The term ``directly 
        eligible tribe'' means any Indian tribe or consortium 
        of Indian tribes that--
                  (A) meets the criteria for inclusion in the 
                qualified applicant pool for Self-Governance 
                that are 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 
                designated as high-risk critical infrastructure 
                by the Secretary;
                  (iii) is located within or contiguous to one 
                of the 50 largest metropolitan statistical 
                areas in the United States; or
                  (iv) has more than 1,000 square miles of 
                Indian country, as that term is defined in 
                section 1151 of title 18, United States Code.
          (4) 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).
          (5) Emergency preparedness.--The term ``emergency 
        preparedness'' shall have the same meaning that term 
        has under section 602 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5195a).
          (6) 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, 
        respond to, and recover from acts of terrorism 
        consistent with established practices.
          (7) First responder.--The term ``first responder'' 
        shall have the same meaning as the term ``emergency 
        response provider''.
          (8) Indian tribe.--The term ``Indian tribe'' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including any Alaskan Native 
        village or regional or village corporation as defined 
        in or established pursuant to the Alaskan Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.), which is 
        recognized as eligible for the special programs and 
        services provided by the United States to Indians 
        because of their status as Indians.
          (9) 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 that they 
                        encompass.
          (10) Task force.--The term ``Task Force'' means the 
        Task Force on Terrorism Preparedness for First 
        Responders established under section 1805.
          (11) Terrorism preparedness.--The term ``terrorism 
        preparedness'' means any activity designed to improve 
        the ability to prevent, prepare for, respond to, 
        mitigate against, or recover from threatened or actual 
        terrorist attacks.

SEC. 1802. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

  (a) Covered Grants.--This title applies to grants provided by 
the Department to States, regions, or directly eligible tribes 
for the primary purpose of improving the ability of first 
responders to prevent, prepare for, respond to, mitigate 
against, or recover from threatened or actual terrorist 
attacks, especially those involving weapons of mass 
destruction, administered 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.
          (3) Law enforcement terrorism prevention program.--
        The Law Enforcement Terrorism Prevention Program 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. 1803. 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) Grant Criteria.--The Secretary shall award covered grants 
to assist States and local governments in achieving, 
maintaining, and enhancing the essential capabilities for 
terrorism preparedness established by the Secretary.
  (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) describes the essential capabilities that 
                communities within the State should possess, or 
                to which they should have access, based upon 
                the terrorism risk factors relevant to such 
                communities, in order to meet the Department's 
                goals for terrorism preparedness;
                  (B) demonstrates the extent to which the 
                State has achieved the essential capabilities 
                that apply to the State;
                  (C) demonstrates the needs of the State 
                necessary to achieve, maintain, or enhance the 
                essential capabilities that apply to the State;
                  (D) includes a prioritization of such needs 
                based on threat, vulnerability, and consequence 
                assessment factors applicable to the State;
                  (E) describes how the State intends--
                          (i) to address such needs at the 
                        city, county, regional, tribal, State, 
                        and interstate level, including a 
                        precise description of any regional 
                        structure the State has established for 
                        the purpose of organizing homeland 
                        security preparedness activities funded 
                        by covered grants;
                          (ii) to use all Federal, State, and 
                        local resources available for the 
                        purpose of addressing such needs; and
                          (iii) to give particular emphasis to 
                        regional planning and cooperation, 
                        including the activities of 
                        multijurisdictional planning agencies 
                        governed by local officials, both 
                        within its jurisdictional borders and 
                        with neighboring States;
                  (F) with respect to the emergency 
                preparedness of first responders, addresses the 
                unique aspects of terrorism as part of a 
                comprehensive State emergency management plan; 
                and
                  (G) provides for coordination of response and 
                recovery efforts at the local level, including 
                procedures for effective incident command in 
                conformance with the National Incident 
                Management System.
          (2) Consultation.--The State plan submitted under 
        paragraph (1) shall be developed in consultation with 
        and subject to appropriate comment by local governments 
        and first responders within the State.
          (3) 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.
          (4) Revisions.--A State may revise the applicable 
        State homeland security plan approved by the Secretary 
        under this subsection, subject to approval of the 
        revision by the Secretary.
  (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.--Except as otherwise provided in this 
        subsection, 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 at 
        such time as the Secretary may reasonably require for 
        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 March 1 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 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 1806(g)(1), would 
                assist in fulfilling the essential capabilities 
                for terrorism preparedness 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 State, a 
                description of how the State plans to allocate 
                the covered grant funds to regions, local 
                governments, and Indian tribes;
                  (E) 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;
                  (F) a capital budget showing how the 
                applicant intends to allocate and expend the 
                covered grant funds;
                  (G) if the applicant is a directly eligible 
                tribe, a designation of a specific individual 
                to serve as the tribal liaison; and
                  (H) a statement of how the applicant intends 
                to meet the matching requirement, if any, that 
                applies under section 1806(g)(2).
          (5) Regional applications.--
                  (A) Relationship to state applications.--A 
                regional application--
                          (i) shall be coordinated with an 
                        application submitted by the State or 
                        States of which such region is a part;
                          (ii) shall supplement and avoid 
                        duplication with such State 
                        application; and
                          (iii) shall address the unique 
                        regional aspects of such region's 
                        terrorism preparedness needs beyond 
                        those provided for in the application 
                        of such State or States.
                  (B) State review and submission.--To ensure 
                the consistency required under subsection (d) 
                and the coordination required under 
                subparagraph (A) of this paragraph, an 
                applicant that is a region must submit its 
                application to each State of which any part is 
                included in the region for review and 
                concurrence prior to the submission of such 
                application to the Secretary. The regional 
                application shall be transmitted to the 
                Secretary through each such State within 30 
                days of its receipt, unless the Governor of 
                such a State notifies the Secretary, in 
                writing, that such regional application is 
                inconsistent with the State's homeland security 
                plan and provides an explanation of the reasons 
                therefor.
                  (C) Distribution of regional awards.--If the 
                Secretary approves a regional application, then 
                the Secretary shall distribute a regional award 
                to the State or States submitting the 
                applicable regional application under 
                subparagraph (B), and each such State shall, 
                not later than the end of the 45-day period 
                beginning on the date after receiving a 
                regional award, pass through to the region all 
                covered grant funds or resources purchased with 
                such funds, except those funds necessary for 
                the State to carry out its responsibilities 
                with respect to such regional application: 
                Provided, That in no such case shall the State 
                or States pass through to the region less than 
                80 percent of the regional award.
                  (D) Certifications regarding distribution of 
                grant funds to regions.--Any State that 
                receives a regional award under subparagraph 
                (C) shall certify to the Secretary, by not 
                later than 30 days after the expiration of the 
                period described in subparagraph (C) with 
                respect to the grant, that the State has made 
                available to the region the required funds and 
                resources in accordance with subparagraph (C).
                  (E) Direct payments to regions.--If any State 
                fails to pass through a regional award to a 
                region as required by subparagraph (C) within 
                45 days after receiving such award and does not 
                request or receive an extension of such period 
                under section 1806(h)(2), the region may 
                petition the Secretary to receive directly the 
                portion of the regional award that is required 
                to be passed through to such region under 
                subparagraph (C).
                  (F) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(E)(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 the state or states.--To 
                ensure the consistency required under 
                subsection (d), an applicant that is a directly 
                eligible tribe must submit its application to 
                each State within the boundaries of which any 
                part of such tribe is located for direct 
                submission to the Department along with the 
                application of such State or States.
                  (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 such tribe is located to 
                comment to the Secretary on the consistency of 
                the tribe's application with the State's 
                homeland security plan. Any such comments shall 
                be submitted to the Secretary concurrently with 
                the submission of the State and tribal 
                applications.
                  (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 to approve 
                any application of such tribe. The Secretary 
                shall notify each State within the boundaries 
                of which any part of such tribe is located of 
                the approval of an application by such tribe.
                  (D) Tribal liaison.--A tribal liaison 
                designated under paragraph (4)(G) shall--
                          (i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        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 such tribe and to 
                        improve the tribe's access to covered 
                        grants; and
                          (iii) administer, in consultation 
                        with State, local, regional, and 
                        private officials, covered grants 
                        awarded to such tribe.
                  (E) Limitation on the number of 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 that does not receive a grant 
                directly under this section is eligible to 
                receive funds under a covered grant from the 
                State or States within the boundaries of which 
                any part of such tribe is located, consistent 
                with the homeland security plan of the State as 
                described in subsection (c). If a State fails 
                to comply with section 1806(g)(1), the tribe 
                may request payment under section 1806(h)(3) in 
                the same manner as a local government.
          (7) Equipment standards.--If an applicant for a 
        covered grant proposes to upgrade or purchase, with 
        assistance provided under the grant, new equipment or 
        systems that do not meet or exceed any applicable 
        national voluntary consensus standards established by 
        the Secretary, 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.

SEC. 1804. RISK-BASED EVALUATION AND PRIORITIZATION.

  (a) 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;
                  (F) the Director of the Office for Domestic 
                Preparedness; and
                  (G) the Administrator of the United States 
                Fire Administration.
          (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.
  (b) Functions of Under Secretaries.--The Under Secretaries 
referred to in subsection (a)(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.
  (c) Prioritization of Grant Applications.--
          (1) Factors to be considered.--The Board shall 
        evaluate and annually prioritize all pending 
        applications for covered grants based upon the degree 
        to which they would, by achieving, maintaining, or 
        enhancing the essential capabilities of the applicants 
        on a nationwide basis, lessen the threat to, 
        vulnerability of, and consequences for persons 
        (including transient commuting and tourist populations) 
        and critical infrastructure. Such evaluation and 
        prioritization 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 Board 
        specifically shall consider threats of terrorism 
        against the following critical infrastructure sectors 
        in all areas of the United States, urban and rural:
                  (A) Agriculture and food.
                  (B) Banking and finance.
                  (C) Chemical industries.
                  (D) The defense industrial base.
                  (E) Emergency services.
                  (F) Energy.
                  (G) Government facilities.
                  (H) Postal and shipping.
                  (I) Public health and health care.
                  (J) Information technology.
                  (K) Telecommunications.
                  (L) Transportation systems.
                  (M) Water.
                  (N) Dams.
                  (O) Commercial facilities.
                  (P) National monuments and icons.
        The order in which the critical infrastructure sectors 
        are listed in this paragraph shall not be construed as 
        an order of priority for consideration of the 
        importance of such sectors.
          (3) Types of threat.--The Board specifically shall 
        consider the following types of threat to the critical 
        infrastructure sectors described in paragraph (2), and 
        to populations in all areas of the United States, urban 
        and rural:
                  (A) Biological threats.
                  (B) Nuclear threats.
                  (C) Radiological threats.
                  (D) Incendiary threats.
                  (E) Chemical threats.
                  (F) Explosives.
                  (G) Suicide bombers.
                  (H) Cyber threats.
                  (I) Any other threats based on proximity to 
                specific past acts of terrorism or the known 
                activity of any terrorist group.
        The order in which the types of threat are listed in 
        this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such 
        threats.
          (4) Consideration of additional factors.--The Board 
        shall take into account any other specific threat to a 
        population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the 
        Board has determined to exist. In evaluating the threat 
        to a population or critical infrastructure sector, the 
        Board shall give greater weight to threats of terrorism 
        based upon their specificity and credibility, including 
        any pattern of repetition.
          (5) Minimum amounts.--After evaluating and 
        prioritizing grant applications under paragraph (1), 
        the Board shall ensure that, for each fiscal year--
                  (A) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern 
                Mariana Islands, that has an approved State 
                homeland security plan receives no less than 
                0.25 percent of the funds available for covered 
                grants for that fiscal year for purposes of 
                implementing its homeland security plan in 
                accordance with the prioritization of needs 
                under section 1803(c)(1)(D);
                  (B) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern 
                Mariana Islands, that has an approved State 
                homeland security plan and that meets one or 
                both of the additional high-risk qualifying 
                criteria under paragraph (6) receives no less 
                than 0.45 percent of the funds available for 
                covered grants for that fiscal year for 
                purposes of implementing its homeland security 
                plan in accordance with the prioritization of 
                needs under section 1803(c)(1)(D);
                  (C) the Virgin Islands, American Samoa, Guam, 
                and the Northern Mariana Islands each receives 
                no less than 0.08 percent of the funds 
                available for covered grants for that fiscal 
                year for purposes of implementing its approved 
                State homeland security plan in accordance with 
                the prioritization of needs under section 
                1803(c)(1)(D); and
                  (D) directly eligible tribes collectively 
                receive no less than 0.08 percent of the funds 
                available for covered grants for such fiscal 
                year for purposes of addressing the needs 
                identified in the applications of such tribes, 
                consistent with the homeland security plan of 
                each State within the boundaries of which any 
                part of any such tribe is located, except that 
                this clause shall not apply with respect to 
                funds available for a fiscal year if the 
                Secretary receives less than 5 applications for 
                such fiscal year from such tribes under section 
                1803(e)(6)(A) or does not approve at least one 
                such application.
          (6) Additional high-risk qualifying criteria.--For 
        purposes of paragraph (5)(B), additional high-risk 
        qualifying criteria consist of--
                  (A) having a significant international land 
                border; or
                  (B) adjoining a body of water within North 
                America through which an international boundary 
                line extends.
  (d) Effect of Regional Awards on State Minimum.--Any regional 
award, or portion thereof, provided to a State under section 
1803(e)(5)(C) shall not be considered in calculating the 
minimum State award under subsection (c)(5) of this section.

SEC. 1805. TASK FORCE ON TERRORISM PREPAREDNESS FOR FIRST RESPONDERS.

  (a) Establishment.--To assist the Secretary in updating, 
revising, or replacing essential capabilities for terrorism 
preparedness, the Secretary shall establish an advisory body 
pursuant to section 871(a) not later than 60 days after the 
date of the enactment of this section, which shall be known as 
the Task Force on Terrorism Preparedness for First Responders.
  (b) Update, Revise, or Replace.--The Secretary shall 
regularly update, revise, or replace the essential capabilities 
for terrorism preparedness as necessary, but not less than 
every 3 years.
  (c) Report.--
          (1) In general.--The Task Force shall submit to the 
        Secretary, by not later than 12 months after its 
        establishment by the Secretary under subsection (a) and 
        not later than every 2 years thereafter, a report on 
        its recommendations for essential capabilities for 
        terrorism preparedness.
          (2) Contents.--Each 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 
                previous 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.
          (3) Consistency with federal working group.--The Task 
        Force shall ensure that its recommendations for 
        essential capabilities for terrorism preparedness are, 
        to the extent feasible, consistent with any 
        preparedness goals or recommendations of the Federal 
        working group established under section 319F(a) of the 
        Public Health Service Act (42 U.S.C. 247d-6(a)).
          (4) Comprehensiveness.--The Task Force shall ensure 
        that its recommendations regarding essential 
        capabilities for terrorism preparedness are made within 
        the context of a comprehensive State emergency 
        management system.
          (5) Prior measures.--The Task Force shall ensure that 
        its recommendations regarding essential capabilities 
        for terrorism preparedness take into account any 
        capabilities that State or local officials have 
        determined to be essential and have undertaken since 
        September 11, 2001, to prevent, prepare for, respond 
        to, or recover from terrorist attacks.
  (d) Membership.--
          (1) In general.--The Task Force shall consist of 25 
        members appointed by the Secretary, and shall, to the 
        extent practicable, represent a geographic (including 
        urban and rural) and substantive cross section of 
        governmental and nongovernmental first responder 
        disciplines from the State and local levels, including 
        as appropriate--
                  (A) members selected from the emergency 
                response field, including fire service 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 
                first responder disciplines; and
                  (D) State and local officials with expertise 
                in terrorism preparedness, subject to the 
                condition that if any such official is an 
                elected official representing one of the two 
                major political parties, an equal number of 
                elected officials shall be selected from each 
                such party.
          (2) Coordination with the department of health and 
        health services.--In the selection of members of the 
        Task Force who are health professionals, including 
        emergency medical professionals, the Secretary shall 
        coordinate such selection with the Secretary of Health 
        and Human Services.
          (3) Ex officio members.--The Secretary and the 
        Secretary of Health and Human Services shall each 
        designate one or more officers of their respective 
        Departments to serve as ex officio members of the Task 
        Force. One of the ex officio members from the 
        Department of Homeland Security shall be the designated 
        officer of the Federal Government for purposes of 
        subsection (e) of section 10 of the Federal Advisory 
        Committee Act (5 App. U.S.C.).
  (e) Applicability of Federal Advisory Committee Act.--
Notwithstanding section 871(a), the Federal Advisory Committee 
Act (5 App. U.S.C.), 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. 1806. 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;
          (2) exercises to strengthen terrorism preparedness;
          (3) training for prevention (including detection) of, 
        preparedness for, response to, or recovery from attacks 
        involving weapons of mass destruction, including 
        training in the use of equipment and computer software;
          (4) developing or updating State homeland security 
        plans, risk assessments, mutual aid agreements, and 
        emergency management plans to enhance terrorism 
        preparedness;
          (5) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
          (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 purposes;
          (7) additional personnel costs resulting from--
                  (A) elevations in the threat alert level of 
                the Homeland Security Advisory System by the 
                Secretary, or a similar elevation in threat 
                alert level issued by a State, region, or local 
                government with the approval of the Secretary;
                  (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) protecting critical infrastructure against 
        potential attack by the addition of barriers, fences, 
        gates, and other such devices, except that the cost of 
        such measures may not exceed the greater of--
                  (A) $1,000,000 per project; or
                  (B) such greater amount as may be approved by 
                the Secretary, which may not exceed 10 percent 
                of the total amount of the covered grant;
          (10) the costs of commercially available 
        interoperable communications equipment (which, where 
        applicable, is based on national, voluntary consensus 
        standards) that the Secretary, in consultation with the 
        Chairman of the Federal Communications Commission, 
        deems best suited to facilitate interoperability, 
        coordination, and integration between and among 
        emergency communications systems, and that complies 
        with prevailing grant guidance of the Department for 
        interoperable communications;
          (11) educational curricula development for first 
        responders to ensure that they are prepared for 
        terrorist attacks;
          (12) training and exercises to assist public 
        elementary and secondary schools in developing and 
        implementing programs to instruct students regarding 
        age-appropriate skills to prevent, prepare for, respond 
        to, mitigate against, or recover from an act of 
        terrorism;
          (13) paying of administrative expenses directly 
        related to administration of the grant, except that 
        such expenses may not exceed 3 percent of the amount of 
        the grant;
          (14) paying for the conduct of any activity permitted 
        under the Law Enforcement Terrorism Prevention Program, 
        or any such successor to such program; and
          (15) 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;
          (2) to construct buildings or other physical 
        facilities;
          (3) to acquire land; or
          (4) for any State or local government cost sharing 
        contribution.
  (c) Multiple-Purpose Funds.--Nothing in this section shall be 
construed to preclude State and local governments from using 
covered grant funds in a manner that also enhances first 
responder preparedness for emergencies and disasters unrelated 
to acts of terrorism, if such use assists such governments in 
achieving essential capabilities for terrorism preparedness 
established by the Secretary.
  (d) Reimbursement of Costs.--In addition to the activities 
described in subsection (a), a covered grant may be used to 
provide a reasonable stipend to paid-on-call or volunteer first 
responders who are not otherwise compensated for travel to or 
participation in training covered by this section. Any such 
reimbursement shall not be considered compensation for purposes 
of rendering such a first responder an employee under the Fair 
Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).
  (e) Assistance Requirement.--The Secretary may not require 
that equipment paid for, wholly or in part, with funds provided 
as a covered grant be made available for responding to 
emergencies in surrounding States, regions, and localities, 
unless the Secretary undertakes to pay the costs directly 
attributable to transporting and operating such equipment 
during such response.
  (f) 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.
  (g) 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) Quarterly report on homeland security spending.--
        The Federal share described in paragraph (2)(A) may be 
        increased by up to 2 percent for any State, region, or 
        directly eligible tribe that, not later than 30 days 
        after the end of each fiscal quarter, submits to the 
        Secretary a report on that fiscal quarter. Each such 
        report must include, for each recipient of a covered 
        grant or a pass-through under paragraph (1)--
                  (A) the amount obligated to that recipient in 
                that quarter;
                  (B) the amount expended by that recipient in 
                that quarter; and
                  (C) a summary description of the items 
                purchased by such recipient with such amount.
          (5) Annual report on homeland security spending.--
        Each recipient of a covered grant shall submit an 
        annual report to the Secretary not later than 60 days 
        after the end of each Federal 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 submit its report to each State within 
        the boundaries of which any part of such tribe is 
        located. Each report must include the following:
                  (A) The amount, ultimate recipients, and 
                dates of receipt of all funds received under 
                the grant during the previous fiscal year.
                  (B) The amount and the dates of 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, 
                maintained, 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.
          (6) Inclusion of restricted annexes.--A recipient of 
        a covered grant may submit to the Secretary an annex to 
        the annual report under paragraph (5) 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.
          (7) Provision of reports.--The Secretary shall ensure 
        that each annual report under paragraph (5) is provided 
        to the Under Secretary for Emergency Preparedness and 
        Response and the Director of the Office for Domestic 
        Preparedness.
  (h) 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 (g)(1) within 45 days after 
        receiving funds under the grant, the Secretary may--
                  (A) reduce grant payments to the grant 
                recipient from the portion of grant funds that 
                is not required to be passed through under 
                subsection (g)(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 (g)(1); 
                        or
                          (iii) for each day that the grant 
                        recipient fails to pass through funds 
                        or resources in accordance with 
                        subsection (g)(1), reducing grant 
                        payments to the grant recipient from 
                        the portion of grant funds that is not 
                        required to be passed through under 
                        subsection (g)(1), except that the 
                        total amount of such reduction may not 
                        exceed 20 percent of the total amount 
                        of the grant.
          (2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day 
        period under section 1803(e)(5)(E) or paragraph (1) for 
        an additional 15-day period. The Secretary may approve 
        such a request, and may extend such period for 
        additional 15-day periods, if the Secretary determines 
        that the resulting delay in providing grant funding to 
        the local government entities that will receive funding 
        under the grant will not have a significant 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 (g)(1); and
                          (iii) the local government complies 
                        with subparagraphs (B) and (C).
                  (B) Showing required.--To receive a payment 
                under this paragraph, a local 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 (g)(1); and
                          (iv) it did not receive the portion 
                        of the overall grant that was earmarked 
                        or designated for its use or benefit.
                  (C) Effect of payment.--Payment of grant 
                funds to a local government under this 
                paragraph--
                          (i) shall not affect any payment to 
                        another local government under this 
                        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.
  (i) Reports to Congress.--The Secretary shall submit an 
annual report to the Congress by January 31 of each year 
covering the preceding fiscal year--
          (1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each 
        State, region, and directly eligible tribe in the 
        preceding fiscal year;
          (2) containing information on the use of such grant 
        funds by grantees; and
          (3) describing--
                  (A) the Nation's progress in achieving, 
                maintaining, and enhancing the essential 
                capabilities established by the Secretary as a 
                result of the expenditure of covered grant 
                funds during the preceding fiscal year; and
                  (B) an estimate of the amount of expenditures 
                required to attain across the United States the 
                essential capabilities established by the 
                Secretary.

SEC. 1807. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
                    TRAINING.

  (a) Equipment 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, 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 
        1805(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;
                  (C) shall be focused on maximizing 
                interoperability, interchangeability, 
                durability, flexibility, efficiency, efficacy, 
                portability, sustainability, and safety; and
                  (D) shall cover all appropriate uses of the 
                equipment.
          (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, mitigate against, and 
                recover from 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.
          (3) Consistency.--In carrying out this subsection, 
        the Secretary shall ensure that such training standards 
        are consistent with the principles of emergency 
        preparedness for all hazards.
  (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;
          (12) the Emergency Management Accreditation Program; 
        and
          (13) 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.
  (d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for 
first responder equipment or training that involve or relate to 
health professionals, including emergency medical 
professionals, the Secretary shall coordinate activities under 
this section with the Secretary of Health and Human Services.