Sec. 7. State election system cybersecurity and modernization grants

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The Commission shall award grants in accordance with this section. The Commission shall coordinate with the Secretary in carrying out this section. If the Chairman determines that jointly carrying out this section with the Secretary would increase State participation and cybersecurity preparedness, the Chairman shall— submit notice of the determination to the Committee on Homeland Security and Governmental Affairs and the Committee on Rules and Administration of the Senate and the Committee on Homeland Security and the Committee on House Administration of the House of Representatives ; and enter into a Memorandum of Understanding with the Secretary to carry out the grant program.

The Commission shall— establish a process for States to apply for election system cybersecurity and modernization grants; in establishing the application process, consider the recommendations of the Advisory Panel under section 5(c); and ensure that the application process requires that a State seeking a grant provide a detailed explanation of how election agencies within the State will implement the guidelines established under section 5(b). The Commission— shall fund a State application submitted under subparagraph

(A)if the Commission determines that— the election agencies within the State will likely implement the guidelines established under section 5(b); with respect to the guidelines related to statistical audits, consistent with section 5(d), the State will complete a statewide pilot program during a biennial Federal general election not later than 2022; and the State will match at least ten percent of the total grant allocation for election cybersecurity improvements; and in reviewing a State application, shall consider the recommendations and criteria of the Advisory Panel under section 5(c). A State receiving a grant under this subsection may adopt any reasonable implementation of the guidelines established under section 5(b). If implementation of the guidelines would be inconsistent with State law, the State shall— identify in the application of the State the legal issue and the guidelines that the State cannot implement; specify in the application of the State the amount of grant funds that the State would spend implementing those guidelines if the law were not inconsistent; and not spend the amount of grant funds specified under subclause

(II)until the legal issue is resolved. The application process established under this paragraph shall not require a State to disclose the personal information of any voter. Except as provided in subparagraph (B), a State receiving a grant under this subsection shall use the funds received under the grant to implement the guidelines established under section 5(b). A State may use funds from a grant under this subsection to improve, upgrade, or acquire hardware, software, or services for the purposes of improving administration of Federal elections, consistent with the guidelines established under section 5(b), if— the State election official submits a written certification to the Commission that the election agencies within the State have implemented the guidelines established under section 5(b); and the Commission, after consideration of the recommendations and criteria of the Advisory Panel under section 5(c), approves the use of funds. Subject to subparagraph (C), the amount of funds provided to a State under a grant under this subsection shall be equal to the product obtained by multiplying— the total amount appropriated for grants pursuant to the authorization under subsection

(h)reduced by the amounts described in subsections (d)(6) and (e)(5); by the State allocation percentage for the State (as determined under paragraph (2)). The State allocation percentage for a State is the amount (expressed as a percentage) equal to the quotient obtained by dividing— the total voting age population of all States (as reported in the most recent decennial census); by the voting age population of the State (as reported in the most recent decennial census). The amount determined under this subsection may not be less than— in the case of any of the several States or the District of Columbia, 0.5 percent of the total amount appropriated for grants under this section; or in the case of the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of Northern Mariana Islands, or the United States Virgin Islands, 0.1 percent of such total amount. The Commission shall make such pro rata reductions to the allocations determined under subparagraph

(A)as are necessary to comply with the requirements of subparagraph (C). If a State notifies the Commission that it will not apply for election system cybersecurity and modernization grants under this subsection, the Commission shall award grants to election agencies within the State. The Commission shall establish a process for election agencies that are eligible under subparagraph

(A)to apply for election system cybersecurity and modernization grants, consistent with the application process for States established under paragraph (1). An election agency that receives a grant under this subsection is subject to the use of funds restrictions in paragraph (2). The amount of funds provided to an election agency under a grant under this subsection shall be equal to the amount obtained by multiplying the amount available to the State under paragraph

(3)by the quotient obtained by dividing— the voting age population of the State (as reported in the most recent decennial census) who would cast their ballots in a Federal election using voting systems operated by the election agency (under current State law); by the voting age population of the State (as reported in the most recent decennial census). The Commission, in consultation with the Secretary, shall award a grant to an election agency, regardless of State submission of an application under subsection (b)(1)(A), that— receives a cyber hygiene scan, a risk and vulnerability assessment, or a similar cybersecurity evaluation by the Department or a contractor approved by the Department; and not later than November 6, 2018, submits to the Commission and the Department— the results of the evaluation described in subparagraph (A); a plan for rapidly remediating the vulnerabilities identified by the evaluation, including specific expenditures; and in the case of an application by any election agency of a political subdivision of a State, a certification of approval from the State election agency. A State election agency may authorize some or all other election agencies within the State to apply for interim grants under paragraph (1). If the amount available under paragraph

(5)is not sufficient to fund the applications received from election agencies within the State, the State election agency may establish a priority order for funding applications. An election agency that receives a grant under paragraph

(1)shall only use the funds received under the grant to implement the remediation plan submitted under paragraph (1)(B)(ii). If an election agency requests an evaluation by the Department consistent with paragraph (1)(A), and the Department is not able to provide the evaluation during the 30-calendar-day period following the request, the agency may— procure a reasonably equivalent evaluation from a private-sector entity; and use funds received from a grant under paragraph

(1)as reimbursement for the cost of the evaluation. The aggregate amount of grants under this subsection to all election agencies in a State shall not exceed 10 percent of the limitation with respect to such State under subsection (b)(3). The amount under subsection (b)(3) for purposes of grants under subsection

(b)to a State shall be reduced by the amount of grants provided under this subsection to election agencies within the State, less any unused amount returned to the Department. The Commission shall award grants to States designated under paragraph

(2)for the purpose of replacing voting systems that would not be eligible for purchase under subsection (f). Not later than 60 days after the date of enactment of this Act, the Commission shall develop a list of States in which 10 percent or more of votes in the first Federal election occurring after the date of enactment of this Act are expected to be cast using voting systems that would not be eligible for purchase under subsection (f), and shall submit the list to the appropriate congressional committees. The Commission shall— establish an application process for States designated under paragraph

(2)to apply for grants under this subsection; and consider the recommendations of the Advisory Panel under section 5(c) in establishing the application process; and ensure that a State applying for a grant submits— an inventory of voting systems in the State that would not be eligible for purchase under subsection (f); a plan to expeditiously replace those voting systems; and a commitment to State funding for replacements that is at least equivalent to the grant amount. The Commission— shall fund a State application if the Commission determines that the State will likely replace the voting systems that would not be eligible for purchase under subsection (f); and in reviewing a State application, shall consider the recommendations and criteria of the Advisory Panel under section 5(c). A State election agency that receives funds under paragraph

(1)shall only use the funds to replace voting systems that would not be eligible for purchase under subsection (f). Of the total amount authorized to be appropriated under subsection (h), $186,000,000 shall be used for grants awarded under this subsection. The grant amount made available to each State shall be set according to the proportional formula described in subsection (b)(3), as applied to the list of States designated under paragraph

(2)and the number of votes cast in those States using voting systems that would not be eligible for purchase under subsection (f). If the Secretary determines that no additional State will receive a grant under this paragraph, the Secretary shall reallocate any amounts remaining under subparagraph

(A)to the cybersecurity and modernization grant program under subsection (b). If a State designated under paragraph

(2)notifies the Commission that it will not apply for grants under this subsection, the Commission shall award grants to election agencies within such State. The Commission shall establish a process for election agencies that are eligible under subparagraph

(A)to apply for grants under this subsection, consistent with the application process for States established under paragraph (3). The Commission shall review applications of election agencies under this paragraph in a similar manner to the manner required for applications by States under paragraph (4). An election agency that receives a grant under this subsection is subject to the use of funds restrictions in paragraph (5). The amount of funds provided to an election agency under a grant under this subsection shall be equal to the amount obtained by multiplying the amount available to the State under paragraph (6)(B) by the quotient obtained by dividing— the voting age population of the State (as reported in the most recent decennial census) who would cast their ballots in a Federal election using voting systems that are operated by the election agency (under current State law) and that would not be eligible for purchase under subsection (f); by the voting age population of the State (as reported in the most recent decennial census) who would cast their ballots in a Federal election using voting systems that would not be eligible for purchase under subsection (f). The Commission shall award grants to reimburse States that conduct statistical audits of a proportionally large number of ballots in close Federal elections if the statistical audit— is consistent with the guidelines established under section 5(b); and includes the inspection (by hand and not by device) of an amount of paper ballots in excess of 5 percent of the voting age population within the State (in the case of national or statewide office) or district covered by the election. A State seeking a grant under this subsection shall submit an application in such form and manner and at such time as the Commission may require. A State election agency may authorize some or all other election agencies within the State to apply for grants under paragraph (1). The Commission shall establish rules for the application of paragraphs

(3)and (4)(B) to agencies requesting grants under this subparagraph. The amount of funds provided under a grant under this subsection shall be equal to the cost of the statistical audit, less the cost of inspecting (by hand and not by device) a number of ballots equal to 5 percent of— in the case of an election for a national or statewide office, the voting age population within the State; or in the case of an election for any other office, the voting age population within the district covered by the election. The Commission shall award grants under this subsection on January 31, 2019, and every 2 years thereafter. If the amount appropriated for carrying out this subsection is insufficient to fund the grants, the Commission shall fund such grants according to the proportional formula described in subsection (b)(3), as applied to the States seeking grants under this subsection and the number of marked paper ballots that were inspected by hand in excess of 5 percent of the voting age population within the State (in the case of national or statewide office) or district covered by the election. Of the total amount authorized to be appropriated under subsection (h), $5,000,000 shall be used for grants under this subsection. Funds received under a grant under this section may not be used for any voting system that records each vote in electronic storage, unless the system is an optical scanner that reads paper ballots. Funds received under a grant under this section may be used for a voting system with an electronic user interface provided that the voting system is consistent with clause (i). Not later than 90 days after the date of enactment of this Act, the Administrator of General Services, in consultation with the Director of the National Institute of Standards and Technology, shall take such actions as may be necessary through competitive processes— to qualify a set of private sector entities that are capable of assisting States with identifying, protecting against, detecting, responding to, and recovering from election cybersecurity incidents, threats, and vulnerabilities; to establish contract vehicles to enable States to access the services of 1 or more of the private sector organizations after receiving amounts under a grant under this section; to ensure that the contract vehicles permit individual States to augment Federal funds with funding otherwise available to the States; and to provide a list of qualified entities to the Chairman and Secretary in order to ensure it is readily available to State election officials. There is authorized to be appropriated to the Commission $386,000,000 to carry out this section for fiscal year 2018. Any amounts appropriated pursuant to paragraph

(1)shall remain available without fiscal year limitation until expended. In this paragraph— the terms agency , closeout , and Federal grant award have the meanings given those terms in section 2 of the Grants Oversight and New Efficiency Act ( Public Law 114–117 ; 130 Stat. 6); and the term Director means the Director of the Office of Management and Budget. Not later than 1 year after the date of enactment of this Act, the Director shall promulgate procedures requiring the head of each agency to promptly conduct a closeout of each Federal grant award. In promulgating the procedures required under subparagraph (B), the Director shall consider the recommendations and data in the reports required to be submitted under section 2 of the Grants Oversight and New Efficiency Act ( Public Law 114–117 ; 130 Stat. 6) and section 530 of the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2016 ( Public Law 114–113 ; 129 Stat. 2329), and similar reports. The procedures required under subparagraph

(B)shall expire 4 years after the date on which the procedures are promulgated. Section 202(7) of the Help America Vote Act of 2002 ( 52 U.S.C. 20921 ), as amended by section 5, is amended by inserting and carrying out the grant programs under section 7 of such Act after Secure Elections Act .

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