State fails to comply with subsection (b), except that such reduction shall not exceed 25 percent in any fiscal year. (ii) Other entities Beginning in the first fiscal year beginning after the first fiscal year described in subparagraph (A)(i) in which a an entity other than a State fails to comply with subsection (b), the percentage by which the funds described in subparagraph (A)(ii) are reduced shall be increased by 5 percent each fiscal year the entity fails to comply with subsection (b), except that such reduction shall not exceed 25 percent in any fiscal year. (2) Reallocation Amounts not allocated under covered provision to a State or other entity for failure to comply with subsection (b) shall be reallocated under the covered provision to States or other entities that have complied with subsection (b). III Law enforcement records retention 301. Law enforcement records retention (a) In general Part E of title I of the Omnibus Crime Control and Safe Streets Acts of 1968 ( 34 U.S.C. 10151 et seq.) is amended by adding at the end the following: 4 Law enforcement records retention 531. Law enforcement records retention (a) Definitions In this section— (1) the term applicable covered system , with respect to a law enforcement agency, means the covered system of the covered government of which the law enforcement agency is part