(a) The office of the governor shall:
(1) allocate available federal and state grants and other funding related to homeland security to state and local agencies and defense base development authorities created under Chapter 379B, Local Government Code, that perform homeland security activities;
(2) periodically review the grants and other funding for appropriateness and compliance;
(3) designate state administering agencies to administer all grants and other funding to the state related to homeland security; and
(4) measure the effectiveness of the homeland security grants and other funding.
(b) State and local agencies that perform homeland security activities shall inform the office of the governor about any actions taken relating to requests for revenue, grants, or other funding for homeland security activities or initiatives.

(c) A state or local agency or defense base development authority that receives a grant or other funding related to homeland security must provide an annual report to the office of the governor detailing:
(1) the compliance of the agency or authority with the state homeland security strategy;
(2) any expenditures made using the funding;
(3) any programs developed or implemented using the funding; and
(4) the manner in which any expenditures made or programs developed or implemented have improved the ability of the agency or authority to detect, deter, respond to, and recover from a terrorist attack.