MARITIME TRANSPORTATION SECURITY GRANTS.

SEC. 804. MARITIME TRANSPORTATION SECURITY GRANTS.(a) Grant Program.—Section 70107(a) of title 46, United States Code, is amended to read as follows:“(a) In General.—The Secretary shall establish a grant program for making a fair and equitable allocation of funds to implement Area Maritime Transportation Security Plans and facility security plans among port authorities, facility operators, and State and local government agencies required to provide port security services. Before awarding a grant under the program, the Secretary shall provide for review and comment by the appropriate Federal Maritime Security Coordinators and the Maritime Administrator. In administering the grant program, the Secretary shall take into account national economic and strategic defense concerns.”. (b) Secretary Administering.—Section 70107 of title 46, United States Code, is amended—(1) by striking “Secretary of Transportation” each place it appears and inserting “Secretary”;(2) by striking “Department of Transportation” each place it appears and inserting “department in which the Coast Guard is operating”.(c) Effective Date.—Subsections (a) and (b)—(1) shall take effect October 1, 2004; and (2) shall not affect any grant made before that date. (d) Report on Design of Maritime Transportation Security Grant Program.—Within 90 days after the date of enactment of this Act, the Secretary of the department in which the Coast Guard is operating shall transmit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of House of Representatives on the design of the maritime transportation security grant program established under section 70107(a) of title 46, United 118 STAT. 1082 States Code. In the report, the Secretary shall include recommendations on—(1) whether the grant program should be discretionary or formula-based and the reasons for the recommendation; (2) requirements for ensuring that Federal funds will not be substituted for grantee funds; (3) targeting requirements to ensure that funding is directed in a manner that considers—(A) national economic and strategic defense concerns; and (B) the fiscal capacity of the recipients to fund facility security plan requirements without grant funds; and(4) matching requirements to ensure that Federal funds provide an incentive to grantees for the investment of their own funds in the improvements financed in part by Federal funds provided under the program.