((a)) ** Attorney General report**

((1)) ** In general** Not later than January 31 of each year, the Attorney General shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report on the progress of the States in automating the databases containing information described under sections 40912 and 40913 of this title, and in providing that information pursuant to the requirements of sections 40912 and 40913 of this title.

((2)) ** Authorization of appropriations** There are authorized to be appropriated to the Department of Justice, such funds as may be necessary to carry out paragraph (1).

((b)) ** Penalties**

((1)) ** Discretionary reduction**

((A)) During the 2-year period beginning 3 years after , the Attorney General may withhold not more than 3 percent of the amount that would otherwise be allocated to a State under if the State provides less than 50 percent of the records required to be provided under sections 40912 and 40913 of this title.

((B)) During the 5-year period after the expiration of the period referred to in subparagraph (A), the Attorney General may withhold not more than 4 percent of the amount that would otherwise be allocated to a State under if the State provides less than 70 percent of the records required to be provided under sections 40912 and 40913 of this title.

((2)) ** Mandatory reduction** After the expiration of the periods referred to in paragraph (1), the Attorney General shall withhold 5 percent of the amount that would otherwise be allocated to a State under , if the State provides less than 90 percent of the records required to be provided under sections 40912 and 40913 of this title.section 10156 of this title

((3)) ** Waiver by Attorney General** The Attorney General may waive the applicability of paragraph (2) to a State if the State provides substantial evidence, as determined by the Attorney General, that the State is making a reasonable effort to comply with the requirements of sections 40912 and 40913 of this title, including an inability to comply due to court order or other legal restriction.

((c)) ** Reallocation** Any funds that are not allocated to a State because of the failure of the State to comply with the requirements of this chapter shall be reallocated to States that meet such requirements.

((d)) ** Methodology** The method established to calculate the number of records to be reported, as set forth in , and State compliance with the required level of reporting under sections 40912 and 40913 of this title shall be determined by the Attorney General. The Attorney General shall calculate the methodology based on the total number of records to be reported from all subcategories of records, as described in .section 40912(b)(1)(A) of this titlesection 40912(b)(1)(C) of this title