(a) Permitted Uses.--The Administrator shall permit the
recipient of a grant under section 2003 or 2004 to use grant
funds to achieve target capabilities related to preventing,
preparing for, protecting against, and responding to acts of
terrorism, consistent with a State homeland security plan and
relevant local, tribal, and regional homeland security plans,
through--
(1) developing and enhancing homeland security,
emergency management, or other relevant plans,
assessments, or mutual aid agreements;
(2) designing, conducting, and evaluating training
and exercises, including training and exercises
conducted under section 512 of this Act and section 648
of the Post-Katrina Emergency Management Reform Act of
2006 (6 U.S.C. 748);
(3) protecting a system or asset included on the
prioritized critical infrastructure list established
under section 210E(a)(2);
(4) purchasing, upgrading, storing, or maintaining
equipment, including computer hardware and software;
(5) ensuring operability and achieving
interoperability of emergency communications;
(6) responding to an increase in the threat level
under the Homeland Security Advisory System, or to the
needs resulting from a National Special Security Event;
(7) establishing, enhancing, and staffing with
appropriately qualified personnel State, local, and
regional fusion centers that comply with the guidelines
established under section 210A(i);
(8) enhancing school preparedness;
(9) supporting public safety answering points;
(10) paying salaries and benefits for personnel,
including individuals employed by the grant recipient
on the date of the relevant grant application, to serve
as qualified intelligence analysts, regardless of
whether such analysts are current or new full-time
employees or contract employees;
(11) paying expenses directly related to
administration of the grant, except that such expenses
may not exceed 3 percent of the amount of the grant;
(12) any activity permitted under the Fiscal Year
2007 Program Guidance of the Department for the State
Homeland Security Grant Program, the Urban Area
Security Initiative (including activities permitted
under the full-time counterterrorism staffing pilot),
or the Law Enforcement Terrorism Prevention Program;
and
(13) any other appropriate activity, as determined
by the Administrator.
(b) Limitations on Use of Funds.--
(1) In general.--Funds provided under section 2003
or 2004 may not be used--
(A) to supplant State or local funds,
except that nothing in this paragraph shall
prohibit the use of grant funds provided to a
State or high-risk urban area for otherwise
permissible uses under subsection (a) on the
basis that a State or high-risk urban area has
previously used State or local funds to support
the same or similar uses; or
(B) for any State or local government cost-
sharing contribution.
(2) Personnel.--
(A) In general.--Not more than 50 percent
of the amount awarded to a grant recipient
under section 2003 or 2004 in any fiscal year
may be used to pay for personnel, including
overtime and backfill costs, in support of the
permitted uses under subsection (a).
(B) Waiver.--At the request of the
recipient of a grant under section 2003 or
2004, the Administrator may grant a waiver of
the limitation under subparagraph (A).
(3) Limitations on discretion.--
(A) In general.--With respect to the use of
amounts awarded to a grant recipient under
section 2003 or 2004 for personnel costs in
accordance with paragraph (2) of this
subsection, the Administrator may not--
(i) impose a limit on the amount of
the award that may be used to pay for
personnel, or personnel-related, costs
that is higher or lower than the
percent limit imposed in paragraph
(2)(A); or
(ii) impose any additional
limitation on the portion of the funds
of a recipient that may be used for a
specific type, purpose, or category of
personnel, or personnel-related, costs.
(B) Analysts.--If amounts awarded to a
grant recipient under section 2003 or 2004 are
used for paying salary or benefits of a
qualified intelligence analyst under subsection
(a)(10), the Administrator shall make such
amounts available without time limitations
placed on the period of time that the analyst
can serve under the grant.
(4) Construction.--
(A) In general.--A grant awarded under
section 2003 or 2004 may not be used to acquire
land or to construct buildings or other
physical facilities.
(B) Exceptions.--
(i) In general.--Notwithstanding
subparagraph (A), nothing in this
paragraph shall prohibit the use of a
grant awarded under section 2003 or
2004 to achieve target capabilities
related to preventing, preparing for,
protecting against, or responding to
acts of terrorism, including through
the alteration or remodeling of
existing buildings for the purpose of
making such buildings secure against
acts of terrorism.
(ii) Requirements for exception.--
No grant awarded under section 2003 or
2004 may be used for a purpose
described in clause (i) unless--
(I) specifically approved
by the Administrator;
(II) any construction work
occurs under terms and
conditions consistent with the
requirements under section
611(j)(9) of the Robert T.
Stafford Disaster Relief and
Emergency Assistance Act (42
U.S.C. 5196(j)(9)); and
(III) the amount allocated
for purposes under clause (i)
does not exceed the greater of
$1,000,000 or 15 percent of the
grant award.
(5) Recreation.--Grants awarded under this subtitle
may not be used for recreational or social purposes.
(c) Multiple-Purpose Funds.--Nothing in this subtitle shall
be construed to prohibit State, local, or tribal governments
from using grant funds under sections 2003 and 2004 in a manner
that enhances preparedness for disasters unrelated to acts of
terrorism, if such use assists such governments in achieving
target capabilities related to preventing, preparing for,
protecting against, or responding to acts of terrorism.
(d) Reimbursement of Costs.--
(1) Paid-on-call or volunteer reimbursement.--In
addition to the activities described in subsection (a),
a grant under section 2003 or 2004 may be used to
provide a reasonable stipend to paid-on-call or
volunteer emergency response providers who are not
otherwise compensated for travel to or participation in
training or exercises related to the purposes of this
subtitle. Any such reimbursement shall not be
considered compensation for purposes of rendering an
emergency response provider an employee under the Fair
Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).
(2) Performance of federal duty.--An applicant for
a grant under section 2003 or 2004 may petition the
Administrator to use the funds from its grants under
those sections for the reimbursement of the cost of any
activity relating to preventing, preparing for,
protecting against, or responding to acts of terrorism
that is a Federal duty and usually performed by a
Federal agency, and that is being performed by a State
or local government under agreement with a Federal
agency.
(e) Flexibility in Unspent Homeland Security Grant Funds.--
Upon request by the recipient of a grant under section 2003 or
2004, the Administrator may authorize the grant recipient to
transfer all or part of the grant funds from uses specified in
the grant agreement to other uses authorized under this
section, if the Administrator determines that such transfer is
in the interests of homeland security.
(f) Equipment Standards.--If an applicant for a grant under
section 2003 or 2004 proposes to upgrade or purchase, with
assistance provided under that grant, new equipment or systems
that do not meet or exceed any applicable national voluntary
consensus standards developed under section 647 of the Post-
Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 747),
the applicant shall include in its 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.