[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5005 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     November 19, 2002.
    Resolved, That the bill from the House of Representatives (H.R. 
5005) entitled ``An Act to establish the Department of Homeland 
Security, and for other purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Homeland Security 
Act of 2002''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Construction; severability.
Sec. 4. Effective date.

                TITLE I--DEPARTMENT OF HOMELAND SECURITY

Sec. 101. Executive department; mission.
Sec. 102. Secretary; functions.
Sec. 103. Other officers.

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
                   Protection; Access to Information

Sec. 201. Directorate for Information Analysis and Infrastructure 
                            Protection.
Sec. 202. Access to information.

            Subtitle B--Critical Infrastructure Information

Sec. 211. Short title.
Sec. 212. Definitions.
Sec. 213. Designation of critical infrastructure protection program.
Sec. 214. Protection of voluntarily shared critical infrastructure 
                            information.
Sec. 215. No private right of action.

                    Subtitle C--Information Security

Sec. 221. Procedures for sharing information.
Sec. 222. Privacy Officer.
Sec. 223. Enhancement of non-Federal cybersecurity.
Sec. 224. Net guard.
Sec. 225. Cyber Security Enhancement Act of 2002.

              Subtitle D--Office of Science and Technology

Sec. 231. Establishment of office; Director.
Sec. 232. Mission of office; duties.
Sec. 233. Definition of law enforcement technology.
Sec. 234. Abolishment of Office of Science and Technology of National 
                            Institute of Justice; transfer of 
                            functions.
Sec. 235. National Law Enforcement and Corrections Technology Centers.
Sec. 236. Coordination with other entities within Department of 
                            Justice.
Sec. 237. Amendments relating to National Institute of Justice.

   TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

Sec. 301. Under Secretary for Science and Technology.
Sec. 302. Responsibilities and authorities of the Under Secretary for 
                            Science and Technology.
Sec. 303. Functions transferred.
Sec. 304. Conduct of certain public health-related activities.
Sec. 305. Federally funded research and development centers.
Sec. 306. Miscellaneous provisions.
Sec. 307. Homeland Security Advanced Research Projects Agency.
Sec. 308. Conduct of research, development, demonstration, testing and 
                            evaluation.
Sec. 309. Utilization of Department of Energy national laboratories and 
                            sites in support of homeland security 
                            activities.
Sec. 310. Transfer of Plum Island Animal Disease Center, Department of 
                            Agriculture.
Sec. 311. Homeland Security Science and Technology Advisory Committee.
Sec. 312. Homeland Security Institute.
Sec. 313. Technology clearinghouse to encourage and support innovative 
                            solutions to enhance homeland security.

      TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

   Subtitle A--Under Secretary for Border and Transportation Security

Sec. 401. Under Secretary for Border and Transportation Security.
Sec. 402. Responsibilities.
Sec. 403. Functions transferred.

               Subtitle B--United States Customs Service

Sec. 411. Establishment; Commissioner of Customs.
Sec. 412. Retention of customs revenue functions by Secretary of the 
                            Treasury.
Sec. 413. Preservation of customs funds.
Sec. 414. Separate budget request for customs.
Sec. 415. Definition.
Sec. 416. GAO report to Congress.
Sec. 417. Allocation of resources by the Secretary.
Sec. 418. Reports to Congress.
Sec. 419. Customs user fees.

                  Subtitle C--Miscellaneous Provisions

Sec. 421. Transfer of certain agricultural inspection functions of the 
                            Department of Agriculture.
Sec. 422. Functions of Administrator of General Services.
Sec. 423. Functions of Transportation Security Administration.
Sec. 424. Preservation of Transportation Security Administration as a 
                            distinct entity.
Sec. 425. Explosive detection systems.
Sec. 426. Transportation security.
Sec. 427. Coordination of information and information technology.
Sec. 428. Visa issuance.
Sec. 429. Information on visa denials required to be entered into 
                            electronic data system.
Sec. 430. Office for Domestic Preparedness.

             Subtitle D--Immigration Enforcement Functions

Sec. 441. Transfer of functions to Under Secretary for Border and 
                            Transportation Security.
Sec. 442. Establishment of Bureau of Border Security.
Sec. 443. Professional responsibility and quality review.
Sec. 444. Employee discipline.
Sec. 445. Report on improving enforcement functions.
Sec. 446. Sense of Congress regarding construction of fencing near San 
                            Diego, California.

            Subtitle E--Citizenship and Immigration Services

Sec. 451. Establishment of Bureau of Citizenship and Immigration 
                            Services.
Sec. 452. Citizenship and Immigration Services Ombudsman.
Sec. 453. Professional responsibility and quality review.
Sec. 454. Employee discipline.
Sec. 455. Effective date.
Sec. 456. Transition.
Sec. 457. Funding for citizenship and immigration services.
Sec. 458. Backlog elimination.
Sec. 459. Report on improving immigration services.
Sec. 460. Report on responding to fluctuating needs.
Sec. 461. Application of Internet-based technologies.
Sec. 462. Children's affairs.

               Subtitle F--General Immigration Provisions

Sec. 471. Abolishment of INS.
Sec. 472. Voluntary separation incentive payments.
Sec. 473. Authority to conduct a demonstration project relating to 
                            disciplinary action.
Sec. 474. Sense of Congress.
Sec. 475. Director of Shared Services.
Sec. 476. Separation of funding.
Sec. 477. Reports and implementation plans.
Sec. 478. Immigration functions.

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

Sec. 501. Under Secretary for Emergency Preparedness and Response.
Sec. 502. Responsibilities.
Sec. 503. Functions transferred.
Sec. 504. Nuclear incident response.
Sec. 505. Conduct of certain public health-related activities.
Sec. 506. Definition.
Sec. 507. Role of Federal Emergency Management Agency.
Sec. 508. Use of national private sector networks in emergency 
                            response.
Sec. 509. Use of commercially available technology, goods, and 
                            services.

   TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
    FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS

Sec. 601. Treatment of charitable trusts for members of the Armed 
                            Forces of the United States and other 
                            governmental organizations.

                         TITLE VII--MANAGEMENT

Sec. 701. Under Secretary for Management.
Sec. 702. Chief Financial Officer.
Sec. 703. Chief Information Officer.
Sec. 704. Chief Human Capital Officer.
Sec. 705. Establishment of Officer for Civil Rights and Civil 
                            Liberties.
Sec. 706. Consolidation and co-location of offices.

TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
     UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           Subtitle A--Coordination with Non-Federal Entities

Sec. 801. Office for State and Local Government Coordination.

                     Subtitle B--Inspector General

Sec. 811. Authority of the Secretary.
Sec. 812. Law enforcement powers of Inspector General agents.

                Subtitle C--United States Secret Service

Sec. 821. Functions transferred.

                        Subtitle D--Acquisitions

Sec. 831. Research and development projects.
Sec. 832. Personal services.
Sec. 833. Special streamlined acquisition authority.
Sec. 834. Unsolicited proposals.
Sec. 835. Prohibition on contracts with corporate expatriates.

                 Subtitle E--Human Resources Management

Sec. 841. Establishment of Human Resources Management System.
Sec. 842. Labor-management relations.

         Subtitle F--Federal Emergency Procurement Flexibility

Sec. 851. Definition.
Sec. 852. Procurements for defense against or recovery from terrorism 
                            or nuclear, biological, chemical, or 
                            radiological attack.
Sec. 853. Increased simplified acquisition threshold for procurements 
                            in support of humanitarian or peacekeeping 
                            operations or contingency operations.
Sec. 854. Increased micro-purchase threshold for certain procurements.
Sec. 855. Application of certain commercial items authorities to 
                            certain procurements.
Sec. 856. Use of streamlined procedures.
Sec. 857. Review and report by Comptroller General.
Sec. 858. Identification of new entrants into the Federal marketplace.

Subtitle G--Support Anti-terrorism by Fostering Effective Technologies 
                              Act of 2002

Sec. 861. Short title.
Sec. 862. Administration.
Sec. 863. Litigation management.
Sec. 864. Risk management.
Sec. 865. Definitions.

                  Subtitle H--Miscellaneous Provisions

Sec. 871. Advisory committees.
Sec. 872. Reorganization.
Sec. 873. Use of appropriated funds.
Sec. 874. Future Year Homeland Security Program.
Sec. 875. Miscellaneous authorities.
Sec. 876. Military activities.
Sec. 877. Regulatory authority and preemption.
Sec. 878. Counternarcotics officer.
Sec. 879. Office of International Affairs.
Sec. 880. Prohibition of the Terrorism Information and Prevention 
                            System.
Sec. 881. Review of pay and benefit plans.
Sec. 882. Office for National Capital Region Coordination.
Sec. 883. Requirement to comply with laws protecting equal employment 
                            opportunity and providing whistleblower 
                            protections.
Sec. 884. Federal Law Enforcement Training Center.
Sec. 885. Joint Interagency Task Force.
Sec. 886. Sense of Congress reaffirming the continued importance and 
                            applicability of the Posse Comitatus Act.
Sec. 887. Coordination with the Department of Health and Human Services 
                            under the Public Health Service Act.
Sec. 888. Preserving Coast Guard mission performance.
Sec. 889. Homeland security funding analysis in President's budget.
Sec. 890. Air Transportation Safety and System Stabilization Act.

                    Subtitle I--Information Sharing

Sec. 891. Short title; findings; and sense of Congress.
Sec. 892. Facilitating homeland security information sharing 
                            procedures.
Sec. 893. Report.
Sec. 894. Authorization of appropriations.
Sec. 895. Authority to share grand jury information.
Sec. 896. Authority to share electronic, wire, and oral interception 
                            information.
Sec. 897. Foreign intelligence information.
Sec. 898. Information acquired from an electronic surveillance.
Sec. 899. Information acquired from a physical search.

              TITLE IX--NATIONAL HOMELAND SECURITY COUNCIL

Sec. 901. National Homeland Security Council.
Sec. 902. Function.
Sec. 903. Membership.
Sec. 904. Other functions and activities.
Sec. 905. Staff composition.
Sec. 906. Relation to the National Security Council.

                     TITLE X--INFORMATION SECURITY

Sec. 1001. Information security.
Sec. 1002. Management of information technology.
Sec. 1003. National Institute of Standards and Technology.
Sec. 1004. Information Security and Privacy Advisory Board.
Sec. 1005. Technical and conforming amendments.
Sec. 1006. Construction.

               TITLE XI--DEPARTMENT OF JUSTICE DIVISIONS

          Subtitle A--Executive Office for Immigration Review

Sec. 1101. Legal status of EOIR.
Sec. 1102. Authorities of the Attorney General.
Sec. 1103. Statutory construction.

Subtitle B--Transfer of the Bureau of Alcohol, Tobacco and Firearms to 
                       the Department of Justice

Sec. 1111. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Sec. 1112. Technical and conforming amendments.
Sec. 1113. Powers of agents of the Bureau of Alcohol, Tobacco, 
                            Firearms, and Explosives.
Sec. 1114. Explosives training and research facility.
Sec. 1115. Personnel management demonstration project.

                         Subtitle C--Explosives

Sec. 1121. Short title.
Sec. 1122. Permits for purchasers of explosives.
Sec. 1123. Persons prohibited from receiving or possessing explosive 
                            materials.
Sec. 1124. Requirement to provide samples of explosive materials and 
                            ammonium nitrate.
Sec. 1125. Destruction of property of institutions receiving Federal 
                            financial assistance.
Sec. 1126. Relief from disabilities.
Sec. 1127. Theft reporting requirement.
Sec. 1128. Authorization of appropriations.

           TITLE XII--AIRLINE WAR RISK INSURANCE LEGISLATION

Sec. 1201. Air carrier liability for third party claims arising out of 
                            acts of terrorism.
Sec. 1202. Extension of insurance policies.
Sec. 1203. Correction of reference.
Sec. 1204. Report.

               TITLE XIII--FEDERAL WORKFORCE IMPROVEMENT

                Subtitle A--Chief Human Capital Officers

Sec. 1301. Short title.
Sec. 1302. Agency Chief Human Capital Officers.
Sec. 1303. Chief Human Capital Officers Council.
Sec. 1304. Strategic human capital management.
Sec. 1305. Effective date.

    Subtitle B--Reforms Relating to Federal Human Capital Management

Sec. 1311. Inclusion of agency human capital strategic planning in 
                            performance plans and programs performance 
                            reports.
Sec. 1312. Reform of the competitive service hiring process.
Sec. 1313. Permanent extension, revision, and expansion of authorities 
                            for use of voluntary separation incentive 
                            pay and voluntary early retirement.
Sec. 1314. Student volunteer transit subsidy.

      Subtitle C--Reforms Relating to the Senior Executive Service

Sec. 1321. Repeal of recertification requirements of senior executives.
Sec. 1322. Adjustment of limitation on total annual compensation.

                     Subtitle D--Academic Training

Sec. 1331. Academic training.
Sec. 1332. Modifications to National Security Education Program.

               TITLE XIV--ARMING PILOTS AGAINST TERRORISM

Sec. 1401. Short title.
Sec. 1402. Federal Flight Deck Officer Program.
Sec. 1403. Crew training.
Sec. 1404. Commercial airline security study.
Sec. 1405. Authority to arm flight deck crew with less-than-lethal 
                            weapons.
Sec. 1406. Technical amendments.

                          TITLE XV--TRANSITION

                    Subtitle A--Reorganization Plan

Sec. 1501. Definitions.
Sec. 1502. Reorganization plan.
Sec. 1503. Review of congressional committee structures.

                  Subtitle B--Transitional Provisions

Sec. 1511. Transitional authorities.
Sec. 1512. Savings provisions.
Sec. 1513. Terminations.
Sec. 1514. National identification system not authorized.
Sec. 1515. Continuity of Inspector General oversight.
Sec. 1516. Incidental transfers.
Sec. 1517. Reference.

      TITLE XVI--CORRECTIONS TO EXISTING LAW RELATING TO AIRLINE 
                        TRANSPORTATION SECURITY

Sec. 1601. Retention of security sensitive information authority at 
                            Department of Transportation.
Sec. 1602. Increase in civil penalties.
Sec. 1603. Allowing United States citizens and United States nationals 
                            as screeners.

            TITLE XVII--CONFORMING AND TECHNICAL AMENDMENTS

Sec. 1701. Inspector General Act of 1978.
Sec. 1702. Executive Schedule.
Sec. 1703. United States Secret Service.
Sec. 1704. Coast Guard.
Sec. 1705. Strategic national stockpile and smallpox vaccine 
                            development.
Sec. 1706. Transfer of certain security and law enforcement functions 
                            and authorities.
Sec. 1707. Transportation security regulations.
Sec. 1708. National Bio-Weapons Defense Analysis Center.
Sec. 1709. Collaboration with the Secretary of Homeland Security.
Sec. 1710. Railroad safety to include railroad security.
Sec. 1711. Hazmat safety to include hazmat security.
Sec. 1712. Office of Science and Technology Policy.
Sec. 1713. National Oceanographic Partnership Program.
Sec. 1714. Clarification of definition of manufacturer.
Sec. 1715. Clarification of definition of vaccine-related injury or 
                            death.
Sec. 1716. Clarification of definition of vaccine.
Sec. 1717. Effective date.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Each of the terms ``American homeland'' and 
        ``homeland'' means the United States.
            (2) The term ``appropriate congressional committee'' means 
        any committee of the House of Representatives or the Senate 
        having legislative or oversight jurisdiction under the Rules of 
        the House of Representatives or the Senate, respectively, over 
        the matter concerned.
            (3) The term ``assets'' includes contracts, facilities, 
        property, records, unobligated or unexpended balances of 
        appropriations, and other funds or resources (other than 
        personnel).
            (4) The term ``critical infrastructure'' has the meaning 
        given that term in section 1016(e) of Public Law 107-56 (42 
        U.S.C. 5195c(e)).
            (5) The term ``Department'' means the Department of 
        Homeland Security.
            (6) The term ``emergency response providers'' includes 
        Federal, State, and local emergency public safety, law 
        enforcement, emergency response, emergency medical (including 
        hospital emergency facilities), and related personnel, 
        agencies, and authorities.
            (7) The term ``executive agency'' means an executive agency 
        and a military department, as defined, respectively, in 
        sections 105 and 102 of title 5, United States Code.
            (8) The term ``functions'' includes authorities, powers, 
        rights, privileges, immunities, programs, projects, activities, 
        duties, and responsibilities.
            (9) The term ``key resources'' means publicly or privately 
        controlled resources essential to the minimal operations of the 
        economy and government.
            (10) The term ``local government'' means--
                    (A) a county, municipality, city, town, township, 
                local public authority, school district, special 
                district, intrastate district, council of governments 
                (regardless of whether the council of governments is 
                incorporated as a nonprofit corporation under State 
                law), regional or interstate government entity, or 
                agency or instrumentality of a local government;
                    (B) an Indian tribe or authorized tribal 
                organization, or in Alaska a Native village or Alaska 
                Regional Native Corporation; and
                    (C) a rural community, unincorporated town or 
                village, or other public entity.
            (11) The term ``major disaster'' has the meaning given in 
        section 102(2) of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5122).
            (12) The term ``personnel'' means officers and employees.
            (13) The term ``Secretary'' means the Secretary of Homeland 
        Security.
            (14) The term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any 
        possession of the United States.
            (15) The term ``terrorism'' means any activity that--
                    (A) involves an act that--
                            (i) is dangerous to human life or 
                        potentially destructive of critical 
                        infrastructure or key resources; and
                            (ii) is a violation of the criminal laws of 
                        the United States or of any State or other 
                        subdivision of the United States; and
                    (B) appears to be intended--
                            (i) to intimidate or coerce a civilian 
                        population;
                            (ii) to influence the policy of a 
                        government by intimidation or coercion; or
                            (iii) to affect the conduct of a government 
                        by mass destruction, assassination, or 
                        kidnapping.
            (16)(A) The term ``United States'', when used in a 
        geographic sense, means any State of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, any possession of the United States, 
        and any waters within the jurisdiction of the United States.
            (B) Nothing in this paragraph or any other provision of 
        this Act shall be construed to modify the definition of 
        ``United States'' for the purposes of the Immigration and 
        Nationality Act or any other immigration or nationality law.

SEC. 3. CONSTRUCTION; SEVERABILITY.

    Any provision of this Act held to be invalid or unenforceable by 
its terms, or as applied to any person or circumstance, shall be 
construed so as to give it the maximum effect permitted by law, unless 
such holding shall be one of utter invalidity or unenforceability, in 
which event such provision shall be deemed severable from this Act and 
shall not affect the remainder thereof, or the application of such 
provision to other persons not similarly situated or to other, 
dissimilar circumstances.

SEC. 4. EFFECTIVE DATE.

    This Act shall take effect 60 days after the date of enactment.

                TITLE I--DEPARTMENT OF HOMELAND SECURITY

SEC. 101. EXECUTIVE DEPARTMENT; MISSION.

    (a) Establishment.--There is established a Department of Homeland 
Security, as an executive department of the United States within the 
meaning of title 5, United States Code.
    (b) Mission.--
            (1) In general.--The primary mission of the Department is 
        to--
                    (A) prevent terrorist attacks within the United 
                States;
                    (B) reduce the vulnerability of the United States 
                to terrorism;
                    (C) minimize the damage, and assist in the 
                recovery, from terrorist attacks that do occur within 
                the United States;
                    (D) carry out all functions of entities transferred 
                to the Department, including by acting as a focal point 
                regarding natural and manmade crises and emergency 
                planning;
                    (E) ensure that the functions of the agencies and 
                subdivisions within the Department that are not related 
                directly to securing the homeland are not diminished or 
                neglected except by a specific explicit Act of 
                Congress;
                    (F) ensure that the overall economic security of 
                the United States is not diminished by efforts, 
                activities, and programs aimed at securing the 
                homeland; and
                    (G) monitor connections between illegal drug 
                trafficking and terrorism, coordinate efforts to sever 
                such connections, and otherwise contribute to efforts 
                to interdict illegal drug trafficking.
            (2) Responsibility for Investigating and Prosecuting 
        Terrorism.--Except as specifically provided by law with respect 
        to entities transferred to the Department under this Act, 
        primary responsibility for investigating and prosecuting acts 
        of terrorism shall be vested not in the Department, but rather 
        in Federal, State, and local law enforcement agencies with 
        jurisdiction over the acts in question.

SEC. 102. SECRETARY; FUNCTIONS.

    (a) Secretary.--
            (1) In general.--There is a Secretary of Homeland Security, 
        appointed by the President, by and with the advice and consent 
        of the Senate.
            (2) Head of department.--The Secretary is the head of the 
        Department and shall have direction, authority, and control 
        over it.
            (3) Functions vested in secretary.--All functions of all 
        officers, employees, and organizational units of the Department 
        are vested in the Secretary.
    (b) Functions.--The Secretary--
            (1) except as otherwise provided by this Act, may delegate 
        any of the Secretary's functions to any officer, employee, or 
        organizational unit of the Department;
            (2) shall have the authority to make contracts, grants, and 
        cooperative agreements, and to enter into agreements with other 
        executive agencies, as may be necessary and proper to carry out 
        the Secretary's responsibilities under this Act or otherwise 
        provided by law; and
            (3) shall take reasonable steps to ensure that information 
        systems and databases of the Department are compatible with 
        each other and with appropriate databases of other Departments.
    (c) Coordination With Non-Federal Entities.--With respect to 
homeland security, the Secretary shall coordinate through the Office of 
State and Local Coordination (established under section 801) (including 
the provision of training and equipment) with State and local 
government personnel, agencies, and authorities, with the private 
sector, and with other entities, including by--
            (1) coordinating with State and local government personnel, 
        agencies, and authorities, and with the private sector, to 
        ensure adequate planning, equipment, training, and exercise 
        activities;
            (2) coordinating and, as appropriate, consolidating, the 
        Federal Government's communications and systems of 
        communications relating to homeland security with State and 
        local government personnel, agencies, and authorities, the 
        private sector, other entities, and the public; and
            (3) distributing or, as appropriate, coordinating the 
        distribution of, warnings and information to State and local 
        government personnel, agencies, and authorities and to the 
        public.
    (d) Meetings of National Security Council.--The Secretary may, 
subject to the direction of the President, attend and participate in 
meetings of the National Security Council.
    (e) Issuance of Regulations.--The issuance of regulations by the 
Secretary shall be governed by the provisions of chapter 5 of title 5, 
United States Code, except as specifically provided in this Act, in 
laws granting regulatory authorities that are transferred by this Act, 
and in laws enacted after the date of enactment of this Act.
    (f) Special Assistant to the Secretary.--The Secretary shall 
appoint a Special Assistant to the Secretary who shall be responsible 
for--
            (1) creating and fostering strategic communications with 
        the private sector to enhance the primary mission of the 
        Department to protect the American homeland;
            (2) advising the Secretary on the impact of the 
        Department's policies, regulations, processes, and actions on 
        the private sector;
            (3) interfacing with other relevant Federal agencies with 
        homeland security missions to assess the impact of these 
        agencies' actions on the private sector;
            (4) creating and managing private sector advisory councils 
        composed of representatives of industries and associations 
        designated by the Secretary to--
                    (A) advise the Secretary on private sector 
                products, applications, and solutions as they relate to 
                homeland security challenges; and
                    (B) advise the Secretary on homeland security 
                policies, regulations, processes, and actions that 
                affect the participating industries and associations;
            (5) working with Federal laboratories, Federally funded 
        research and development centers, other Federally funded 
        organizations, academia, and the private sector to develop 
        innovative approaches to address homeland security challenges 
        to produce and deploy the best available technologies for 
        homeland security missions;
            (6) promoting existing public-private partnerships and 
        developing new public-private partnerships to provide for 
        collaboration and mutual support to address homeland security 
        challenges; and
            (7) assisting in the development and promotion of private 
        sector best practices to secure critical infrastructure.
    (g) Standards Policy.--All standards activities of the Department 
shall be conducted in accordance with section 12(d) of the National 
Technology Transfer Advancement Act of 1995 (15 U.S.C. 272 note) and 
Office of Management and Budget Circular A-119.

SEC. 103. OTHER OFFICERS.

    (a) Deputy Secretary; Under Secretaries.--There are the following 
officers, appointed by the President, by and with the advice and 
consent of the Senate:
            (1) A Deputy Secretary of Homeland Security, who shall be 
        the Secretary's first assistant for purposes of subchapter III 
        of chapter 33 of title 5, United States Code.
            (2) An Under Secretary for Information Analysis and 
        Infrastructure Protection.
            (3) An Under Secretary for Science and Technology.
            (4) An Under Secretary for Border and Transportation 
        Security.
            (5) An Under Secretary for Emergency Preparedness and 
        Response.
            (6) A Director of the Bureau of Citizenship and Immigration 
        Services.
            (7) An Under Secretary for Management.
            (8) Not more than 12 Assistant Secretaries.
            (9) A General Counsel, who shall be the chief legal officer 
        of the department.
    (b) Inspector General.--There is an Inspector General, who shall be 
appointed as provided in section 3(a) of the Inspector General Act of 
1978.
    (c) Commandant of the Coast Guard.--To assist the Secretary in the 
performance of the Secretary's functions, there is a Commandant of the 
Coast Guard, who shall be appointed as provided in section 44 of title 
14, United States Code, and who shall report directly to the Secretary. 
In addition to such duties as may be provided in this Act and as 
assigned to the Commandant by the Secretary, the duties of the 
Commandant shall include those required by section 2 of title 14, 
United States Code.
    (d) Other Officers.--To assist the Secretary in the performance of 
the Secretary's functions, there are the following officers, appointed 
by the President:
            (1) A Director of the Secret Service.
            (2) A Chief Information Officer.
            (3) A Chief Human Capital Officer.
            (4) A Chief Financial Officer.
            (5) An Officer for Civil Rights and Civil Liberties.
    (e) Performance of Specific Functions.--Subject to the provisions 
of this Act, every officer of the Department shall perform the 
functions specified by law for the official's office or prescribed by 
the Secretary.

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

  Subtitle A--Directorate for Information Analysis and Infrastructure 
                   Protection; Access to Information

SEC. 201. DIRECTORATE FOR INFORMATION ANALYSIS AND INFRASTRUCTURE 
              PROTECTION.

    (a) Under Secretary of Homeland Security for Information Analysis 
and Infrastructure Protection.--
            (1) In general.--There shall be in the Department a 
        Directorate for Information Analysis and Infrastructure 
        Protection headed by an Under Secretary for Information 
        Analysis and Infrastructure Protection, who shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate.
            (2) Responsibilities.--The Under Secretary shall assist the 
        Secretary in discharging the responsibilities assigned by the 
        Secretary.
    (b) Assistant Secretary for Information Analysis; Assistant 
Secretary for Infrastructure Protection.--
            (1) Assistant secretary for information analysis.--There 
        shall be in the Department an Assistant Secretary for 
        Information Analysis, who shall be appointed by the President.
            (2) Assistant secretary for infrastructure protection.--
        There shall be in the Department an Assistant Secretary for 
        Infrastructure Protection, who shall be appointed by the 
        President.
            (3) Responsibilities.--The Assistant Secretary for 
        Information Analysis and the Assistant Secretary for 
        Infrastructure Protection shall assist the Under Secretary for 
        Information Analysis and Infrastructure Protection in 
        discharging the responsibilities of the Under Secretary under 
        this section.
    (c) Discharge of Information Analysis and Infrastructure 
Protection.--The Secretary shall ensure that the responsibilities of 
the Department regarding information analysis and infrastructure 
protection are carried out through the Under Secretary for Information 
Analysis and Infrastructure Protection.
    (d) Responsibilities of Under Secretary.--Subject to the direction 
and control of the Secretary, the responsibilities of the Under 
Secretary for Information Analysis and Infrastructure Protection shall 
be as follows:
            (1) To access, receive, and analyze law enforcement 
        information, intelligence information, and other information 
        from agencies of the Federal Government, State and local 
        government agencies (including law enforcement agencies), and 
        private sector entities, and to integrate such information in 
        order to--
                    (A) identify and assess the nature and scope of 
                terrorist threats to the homeland;
                    (B) detect and identify threats of terrorism 
                against the United States; and
                    (C) understand such threats in light of actual and 
                potential vulnerabilities of the homeland.
            (2) To carry out comprehensive assessments of the 
        vulnerabilities of the key resources and critical 
        infrastructure of the United States, including the performance 
        of risk assessments to determine the risks posed by particular 
        types of terrorist attacks within the United States (including 
        an assessment of the probability of success of such attacks and 
        the feasibility and potential efficacy of various 
        countermeasures to such attacks).
            (3) To integrate relevant information, analyses, and 
        vulnerability assessments (whether such information, analyses, 
        or assessments are provided or produced by the Department or 
        others) in order to identify priorities for protective and 
        support measures by the Department, other agencies of the 
        Federal Government, State and local government agencies and 
        authorities, the private sector, and other entities.
            (4) To ensure, pursuant to section 202, the timely and 
        efficient access by the Department to all information necessary 
        to discharge the responsibilities under this section, including 
        obtaining such information from other agencies of the Federal 
        Government.
            (5) To develop a comprehensive national plan for securing 
        the key resources and critical infrastructure of the United 
        States, including power production, generation, and 
        distribution systems, information technology and 
        telecommunications systems (including satellites), electronic 
        financial and property record storage and transmission systems, 
        emergency preparedness communications systems, and the physical 
        and technological assets that support such systems.
            (6) To recommend measures necessary to protect the key 
        resources and critical infrastructure of the United States in 
        coordination with other agencies of the Federal Government and 
        in cooperation with State and local government agencies and 
        authorities, the private sector, and other entities.
            (7) To administer the Homeland Security Advisory System, 
        including--
                    (A) exercising primary responsibility for public 
                advisories related to threats to homeland security; and
                    (B) in coordination with other agencies of the 
                Federal Government, providing specific warning 
                information, and advice about appropriate protective 
                measures and countermeasures, to State and local 
                government agencies and authorities, the private 
                sector, other entities, and the public.
            (8) To review, analyze, and make recommendations for 
        improvements in the policies and procedures governing the 
        sharing of law enforcement information, intelligence 
        information, intelligence-related information, and other 
        information relating to homeland security within the Federal 
        Government and between the Federal Government and State and 
        local government agencies and authorities.
            (9) To disseminate, as appropriate, information analyzed by 
        the Department within the Department, to other agencies of the 
        Federal Government with responsibilities relating to homeland 
        security, and to agencies of State and local governments and 
        private sector entities with such responsibilities in order to 
        assist in the deterrence, prevention, preemption of, or 
        response to, terrorist attacks against the United States.
            (10) To consult with the Director of Central Intelligence 
        and other appropriate intelligence, law enforcement, or other 
        elements of the Federal Government to establish collection 
        priorities and strategies for information, including law 
        enforcement-related information, relating to threats of 
        terrorism against the United States through such means as the 
        representation of the Department in discussions regarding 
        requirements and priorities in the collection of such 
        information.
            (11) To consult with State and local governments and 
        private sector entities to ensure appropriate exchanges of 
        information, including law enforcement-related information, 
        relating to threats of terrorism against the United States.
            (12) To ensure that--
                    (A) any material received pursuant to this Act is 
                protected from unauthorized disclosure and handled and 
                used only for the performance of official duties; and
                    (B) any intelligence information under this Act is 
                shared, retained, and disseminated consistent with the 
                authority of the Director of Central Intelligence to 
                protect intelligence sources and methods under the 
                National Security Act of 1947 (50 U.S.C. 401 et seq.) 
                and related procedures and, as appropriate, similar 
                authorities of the Attorney General concerning 
                sensitive law enforcement information.
            (13) To request additional information from other agencies 
        of the Federal Government, State and local government agencies, 
        and the private sector relating to threats of terrorism in the 
        United States, or relating to other areas of responsibility 
        assigned by the Secretary, including the entry into cooperative 
        agreements through the Secretary to obtain such information.
            (14) To establish and utilize, in conjunction with the 
        chief information officer of the Department, a secure 
        communications and information technology infrastructure, 
        including data-mining and other advanced analytical tools, in 
        order to access, receive, and analyze data and information in 
        furtherance of the responsibilities under this section, and to 
        disseminate information acquired and analyzed by the 
        Department, as appropriate.
            (15) To ensure, in conjunction with the chief information 
        officer of the Department, that any information databases and 
        analytical tools developed or utilized by the Department--
                    (A) are compatible with one another and with 
                relevant information databases of other agencies of the 
                Federal Government; and
                    (B) treat information in such databases in a manner 
                that complies with applicable Federal law on privacy.
            (16) To coordinate training and other support to the 
        elements and personnel of the Department, other agencies of the 
        Federal Government, and State and local governments that 
        provide information to the Department, or are consumers of 
        information provided by the Department, in order to facilitate 
        the identification and sharing of information revealed in their 
        ordinary duties and the optimal utilization of information 
        received from the Department.
            (17) To coordinate with elements of the intelligence 
        community and with Federal, State, and local law enforcement 
        agencies, and the private sector, as appropriate.
            (18) To provide intelligence and information analysis and 
        support to other elements of the Department.
            (19) To perform such other duties relating to such 
        responsibilities as the Secretary may provide.
    (e) Staff.--
            (1) In general.--The Secretary shall provide the 
        Directorate with a staff of analysts having appropriate 
        expertise and experience to assist the Directorate in 
        discharging responsibilities under this section.
            (2) Private sector analysts.--Analysts under this 
        subsection may include analysts from the private sector.
            (3) Security clearances.--Analysts under this subsection 
        shall possess security clearances appropriate for their work 
        under this section.
    (f) Detail of Personnel.--
            (1) In general.--In order to assist the Directorate in 
        discharging responsibilities under this section, personnel of 
        the agencies referred to in paragraph (2) may be detailed to 
        the Department for the performance of analytic functions and 
        related duties.
            (2) Covered agencies.--The agencies referred to in this 
        paragraph are as follows:
                    (A) The Department of State.
                    (B) The Central Intelligence Agency.
                    (C) The Federal Bureau of Investigation.
                    (D) The National Security Agency.
                    (E) The National Imagery and Mapping Agency.
                    (F) The Defense Intelligence Agency.
                    (G) Any other agency of the Federal Government that 
                the President considers appropriate.
            (3) Cooperative agreements.--The Secretary and the head of 
        the agency concerned may enter into cooperative agreements for 
        the purpose of detailing personnel under this subsection.
            (4) Basis.--The detail of personnel under this subsection 
        may be on a reimbursable or non-reimbursable basis.
    (g) Functions Transferred.--In accordance with title XV, there 
shall be transferred to the Secretary, for assignment to the Under 
Secretary for Information Analysis and Infrastructure Protection under 
this section, the functions, personnel, assets, and liabilities of the 
following:
            (1) The National Infrastructure Protection Center of the 
        Federal Bureau of Investigation (other than the Computer 
        Investigations and Operations Section), including the functions 
        of the Attorney General relating thereto.
            (2) The National Communications System of the Department of 
        Defense, including the functions of the Secretary of Defense 
        relating thereto.
            (3) The Critical Infrastructure Assurance Office of the 
        Department of Commerce, including the functions of the 
        Secretary of Commerce relating thereto.
            (4) The National Infrastructure Simulation and Analysis 
        Center of the Department of Energy and the energy security and 
        assurance program and activities of the Department, including 
        the functions of the Secretary of Energy relating thereto.
            (5) The Federal Computer Incident Response Center of the 
        General Services Administration, including the functions of the 
        Administrator of General Services relating thereto.
    (h) Inclusion of Certain Elements of the Department as Elements of 
the Intelligence Community.--Section 3(4) of the National Security Act 
of 1947 (50 U.S.C. 401(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (I);
            (2) by redesignating subparagraph (J) as subparagraph (K); 
        and
            (3) by inserting after subparagraph (I) the following new 
        subparagraph:
                    ``(J) the elements of the Department of Homeland 
                Security concerned with the analyses of foreign 
                intelligence information; and''.

SEC. 202. ACCESS TO INFORMATION.

    (a) In General.--
            (1) Threat and vulnerability information.--Except as 
        otherwise directed by the President, the Secretary shall have 
        such access as the Secretary considers necessary to all 
        information, including reports, assessments, analyses, and 
        unevaluated intelligence relating to threats of terrorism 
        against the United States and to other areas of responsibility 
        assigned by the Secretary, and to all information concerning 
        infrastructure or other vulnerabilities of the United States to 
        terrorism, whether or not such information has been analyzed, 
        that may be collected, possessed, or prepared by any agency of 
        the Federal Government.
            (2) Other information.--The Secretary shall also have 
        access to other information relating to matters under the 
        responsibility of the Secretary that may be collected, 
        possessed, or prepared by an agency of the Federal Government 
        as the President may further provide.
    (b) Manner of Access.--Except as otherwise directed by the 
President, with respect to information to which the Secretary has 
access pursuant to this section--
            (1) the Secretary may obtain such material upon request, 
        and may enter into cooperative arrangements with other 
        executive agencies to provide such material or provide 
        Department officials with access to it on a regular or routine 
        basis, including requests or arrangements involving broad 
        categories of material, access to electronic databases, or 
        both; and
            (2) regardless of whether the Secretary has made any 
        request or entered into any cooperative arrangement pursuant to 
        paragraph (1), all agencies of the Federal Government shall 
        promptly provide to the Secretary--
                    (A) all reports (including information reports 
                containing intelligence which has not been fully 
                evaluated), assessments, and analytical information 
                relating to threats of terrorism against the United 
                States and to other areas of responsibility assigned by 
                the Secretary;
                    (B) all information concerning the vulnerability of 
                the infrastructure of the United States, or other 
                vulnerabilities of the United States, to terrorism, 
                whether or not such information has been analyzed;
                    (C) all other information relating to significant 
                and credible threats of terrorism against the United 
                States, whether or not such information has been 
                analyzed; and
                    (D) such other information or material as the 
                President may direct.
    (c) Treatment Under Certain Laws.--The Secretary shall be deemed to 
be a Federal law enforcement, intelligence, protective, national 
defense, immigration, or national security official, and shall be 
provided with all information from law enforcement agencies that is 
required to be given to the Director of Central Intelligence, under any 
provision of the following:
            (1) The USA PATRIOT Act of 2001 (Public Law 107-56).
            (2) Section 2517(6) of title 18, United States Code.
            (3) Rule 6(e)(3)(C) of the Federal Rules of Criminal 
        Procedure.
    (d) Access to Intelligence and Other Information.--
            (1) Access by elements of federal government.--Nothing in 
        this title shall preclude any element of the intelligence 
        community (as that term is defined in section 3(4) of the 
        National Security Act of 1947 (50 U.S.C. 401a(4)), or other any 
        element of the Federal Government with responsibility for 
        analyzing terrorist threat information, from receiving any 
        intelligence or other information relating to terrorism.
            (2) Sharing of information.--The Secretary, in consultation 
        with the Director of Central Intelligence, shall work to ensure 
        that intelligence or other information relating to terrorism to 
        which the Department has access is appropriately shared with 
        the elements of the Federal Government referred to in paragraph 
        (1), as well as with State and local governments, as 
        appropriate.

            Subtitle B--Critical Infrastructure Information

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``Critical Infrastructure 
Information Act of 2002''.

SEC. 212. DEFINITIONS.

    In this subtitle:
            (1) Agency.--The term ``agency'' has the meaning given it 
        in section 551 of title 5, United States Code.
            (2) Covered federal agency.--The term ``covered Federal 
        agency'' means the Department of Homeland Security.
            (3) Critical infrastructure information.--The term 
        ``critical infrastructure information'' means information not 
        customarily in the public domain and related to the security of 
        critical infrastructure or protected systems--
                    (A) actual, potential, or threatened interference 
                with, attack on, compromise of, or incapacitation of 
                critical infrastructure or protected systems by either 
                physical or computer-based attack or other similar 
                conduct (including the misuse of or unauthorized access 
                to all types of communications and data transmission 
                systems) that violates Federal, State, or local law, 
                harms interstate commerce of the United States, or 
                threatens public health or safety;
                    (B) the ability of any critical infrastructure or 
                protected system to resist such interference, 
                compromise, or incapacitation, including any planned or 
                past assessment, projection, or estimate of the 
                vulnerability of critical infrastructure or a protected 
                system, including security testing, risk evaluation 
                thereto, risk management planning, or risk audit; or
                    (C) any planned or past operational problem or 
                solution regarding critical infrastructure or protected 
                systems, including repair, recovery, reconstruction, 
                insurance, or continuity, to the extent it is related 
                to such interference, compromise, or incapacitation.
            (4) Critical infrastructure protection program.--The term 
        ``critical infrastructure protection program'' means any 
        component or bureau of a covered Federal agency that has been 
        designated by the President or any agency head to receive 
        critical infrastructure information.
            (5) Information sharing and analysis organization.--The 
        term ``Information Sharing and Analysis Organization'' means 
        any formal or informal entity or collaboration created or 
        employed by public or private sector organizations, for 
        purposes of--
                    (A) gathering and analyzing critical infrastructure 
                information in order to better understand security 
                problems and interdependencies related to critical 
                infrastructure and protected systems, so as to ensure 
                the availability, integrity, and reliability thereof;
                    (B) communicating or disclosing critical 
                infrastructure information to help prevent, detect, 
                mitigate, or recover from the effects of a 
                interference, compromise, or a incapacitation problem 
                related to critical infrastructure or protected 
                systems; and
                    (C) voluntarily disseminating critical 
                infrastructure information to its members, State, 
                local, and Federal Governments, or any other entities 
                that may be of assistance in carrying out the purposes 
                specified in subparagraphs (A) and (B).
            (6) Protected system.--The term ``protected system''--
                    (A) means any service, physical or computer-based 
                system, process, or procedure that directly or 
                indirectly affects the viability of a facility of 
                critical infrastructure; and
                    (B) includes any physical or computer-based system, 
                including a computer, computer system, computer or 
                communications network, or any component hardware or 
                element thereof, software program, processing 
                instructions, or information or data in transmission or 
                storage therein, irrespective of the medium of 
                transmission or storage.
            (7) Voluntary.--
                    (A) In general.--The term ``voluntary'', in the 
                case of any submittal of critical infrastructure 
                information to a covered Federal agency, means the 
                submittal thereof in the absence of such agency's 
                exercise of legal authority to compel access to or 
                submission of such information and may be accomplished 
                by a single entity or an Information Sharing and 
                Analysis Organization on behalf of itself or its 
                members.
                    (B) Exclusions.--The term ``voluntary''--
                            (i) in the case of any action brought under 
                        the securities laws as is defined in section 
                        3(a)(47) of the Securities Exchange Act of 1934 
                        (15 U.S.C. 78c(a)(47))--
                                    (I) does not include information or 
                                statements contained in any documents 
                                or materials filed with the Securities 
                                and Exchange Commission, or with 
                                Federal banking regulators, pursuant to 
                                section 12(i) of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                781(I)); and
                                    (II) with respect to the submittal 
                                of critical infrastructure information, 
                                does not include any disclosure or 
                                writing that when made accompanied the 
                                solicitation of an offer or a sale of 
                                securities; and
                            (ii) does not include information or 
                        statements submitted or relied upon as a basis 
                        for making licensing or permitting 
                        determinations, or during regulatory 
                        proceedings.

SEC. 213. DESIGNATION OF CRITICAL INFRASTRUCTURE PROTECTION PROGRAM.

    A critical infrastructure protection program may be designated as 
such by one of the following:
            (1) The President.
            (2) The Secretary of Homeland Security.

SEC. 214. PROTECTION OF VOLUNTARILY SHARED CRITICAL INFRASTRUCTURE 
              INFORMATION.

    (a) Protection.--
            (1) In general.--Notwithstanding any other provision of 
        law, critical infrastructure information (including the 
        identity of the submitting person or entity) that is 
        voluntarily submitted to a covered Federal agency for use by 
        that agency regarding the security of critical infrastructure 
        and protected systems, analysis, warning, interdependency 
        study, recovery, reconstitution, or other informational 
        purpose, when accompanied by an express statement specified in 
        paragraph (2)--
                    (A) shall be exempt from disclosure under section 
                552 of title 5, United States Code (commonly referred 
                to as the Freedom of Information Act);
                    (B) shall not be subject to any agency rules or 
                judicial doctrine regarding ex parte communications 
                with a decision making official;
                    (C) shall not, without the written consent of the 
                person or entity submitting such information, be used 
                directly by such agency, any other Federal, State, or 
                local authority, or any third party, in any civil 
                action arising under Federal or State law if such 
                information is submitted in good faith;
                    (D) shall not, without the written consent of the 
                person or entity submitting such information, be used 
                or disclosed by any officer or employee of the United 
                States for purposes other than the purposes of this 
                subtitle, except--
                            (i) in furtherance of an investigation or 
                        the prosecution of a criminal act; or
                            (ii) when disclosure of the information 
                        would be--
                                    (I) to either House of Congress, or 
                                to the extent of matter within its 
                                jurisdiction, any committee or 
                                subcommittee thereof, any joint 
                                committee thereof or subcommittee of 
                                any such joint committee; or
                                    (II) to the Comptroller General, or 
                                any authorized representative of the 
                                Comptroller General, in the course of 
                                the performance of the duties of the 
                                General Accounting Office.
                    (E) shall not, if provided to a State or local 
                government or government agency--
                            (i) be made available pursuant to any State 
                        or local law requiring disclosure of 
                        information or records;
                            (ii) otherwise be disclosed or distributed 
                        to any party by said State or local government 
                        or government agency without the written 
                        consent of the person or entity submitting such 
                        information; or
                            (iii) be used other than for the purpose of 
                        protecting critical infrastructure or protected 
                        systems, or in furtherance of an investigation 
                        or the prosecution of a criminal act; and
                    (F) does not constitute a waiver of any applicable 
                privilege or protection provided under law, such as 
                trade secret protection.
            (2) Express statement.--For purposes of paragraph (1), the 
        term ``express statement'', with respect to information or 
        records, means--
                    (A) in the case of written information or records, 
                a written marking on the information or records 
                substantially similar to the following: ``This 
                information is voluntarily submitted to the Federal 
                Government in expectation of protection from disclosure 
                as provided by the provisions of the Critical 
                Infrastructure Information Act of 2002.''; or
                    (B) in the case of oral information, a similar 
                written statement submitted within a reasonable period 
                following the oral communication.
    (b) Limitation.--No communication of critical infrastructure 
information to a covered Federal agency made pursuant to this subtitle 
shall be considered to be an action subject to the requirements of the 
Federal Advisory Committee Act (5 U.S.C. App. 2).
    (c) Independently Obtained Information.--Nothing in this section 
shall be construed to limit or otherwise affect the ability of a State, 
local, or Federal Government entity, agency, or authority, or any third 
party, under applicable law, to obtain critical infrastructure 
information in a manner not covered by subsection (a), including any 
information lawfully and properly disclosed generally or broadly to the 
public and to use such information in any manner permitted by law.
    (d) Treatment of Voluntary Submittal of Information.--The voluntary 
submittal to the Government of information or records that are 
protected from disclosure by this subtitle shall not be construed to 
constitute compliance with any requirement to submit such information 
to a Federal agency under any other provision of law.
    (e) Procedures.--
            (1) In general.--The Secretary of the Department of 
        Homeland Security shall, in consultation with appropriate 
        representatives of the National Security Council and the Office 
        of Science and Technology Policy, establish uniform procedures 
        for the receipt, care, and storage by Federal agencies of 
        critical infrastructure information that is voluntarily 
        submitted to the Government. The procedures shall be 
        established not later than 90 days after the date of the 
        enactment of this subtitle.
            (2) Elements.--The procedures established under paragraph 
        (1) shall include mechanisms regarding--
                    (A) the acknowledgement of receipt by Federal 
                agencies of critical infrastructure information that is 
                voluntarily submitted to the Government;
                    (B) the maintenance of the identification of such 
                information as voluntarily submitted to the Government 
                for purposes of and subject to the provisions of this 
                subtitle;
                    (C) the care and storage of such information; and
                    (D) the protection and maintenance of the 
                confidentiality of such information so as to permit the 
                sharing of such information within the Federal 
                Government and with State and local governments, and 
                the issuance of notices and warnings related to the 
                protection of critical infrastructure and protected 
                systems, in such manner as to protect from public 
                disclosure the identity of the submitting person or 
                entity, or information that is proprietary, business 
                sensitive, relates specifically to the submitting 
                person or entity, and is otherwise not appropriately in 
                the public domain.
    (f) Penalties.--Whoever, being an officer or employee of the United 
States or of any department or agency thereof, knowingly publishes, 
divulges, discloses, or makes known in any manner or to any extent not 
authorized by law, any critical infrastructure information protected 
from disclosure by this subtitle coming to him in the course of this 
employment or official duties or by reason of any examination or 
investigation made by, or return, report, or record made to or filed 
with, such department or agency or officer or employee thereof, shall 
be fined under title 18 of the United States Code, imprisoned not more 
than 1 year, or both, and shall be removed from office or employment.
    (g) Authority To Issue Warnings.--The Federal Government may 
provide advisories, alerts, and warnings to relevant companies, 
targeted sectors, other governmental entities, or the general public 
regarding potential threats to critical infrastructure as appropriate. 
In issuing a warning, the Federal Government shall take appropriate 
actions to protect from disclosure--
            (1) the source of any voluntarily submitted critical 
        infrastructure information that forms the basis for the 
        warning; or
            (2) information that is proprietary, business sensitive, 
        relates specifically to the submitting person or entity, or is 
        otherwise not appropriately in the public domain.
    (h) Authority To Delegate.--The President may delegate authority to 
a critical infrastructure protection program, designated under section 
213, to enter into a voluntary agreement to promote critical 
infrastructure security, including with any Information Sharing and 
Analysis Organization, or a plan of action as otherwise defined in 
section 708 of the Defense Production Act of 1950 (50 U.S.C. App. 
2158).

SEC. 215. NO PRIVATE RIGHT OF ACTION.

    Nothing in this subtitle may be construed to create a private right 
of action for enforcement of any provision of this Act.

                    Subtitle C--Information Security

SEC. 221. PROCEDURES FOR SHARING INFORMATION.

    The Secretary shall establish procedures on the use of information 
shared under this title that--
            (1) limit the redissemination of such information to ensure 
        that it is not used for an unauthorized purpose;
            (2) ensure the security and confidentiality of such 
        information;
            (3) protect the constitutional and statutory rights of any 
        individuals who are subjects of such information; and
            (4) provide data integrity through the timely removal and 
        destruction of obsolete or erroneous names and information.

SEC. 222. PRIVACY OFFICER.

    The Secretary shall appoint a senior official in the Department to 
assume primary responsibility for privacy policy, including--
            (1) assuring that the use of technologies sustain, and do 
        not erode, privacy protections relating to the use, collection, 
        and disclosure of personal information;
            (2) assuring that personal information contained in Privacy 
        Act systems of records is handled in full compliance with fair 
        information practices as set out in the Privacy Act of 1974;
            (3) evaluating legislative and regulatory proposals 
        involving collection, use, and disclosure of personal 
        information by the Federal Government;
            (4) conducting a privacy impact assessment of proposed 
        rules of the Department or that of the Department on the 
        privacy of personal information, including the type of personal 
        information collected and the number of people affected; and
            (5) preparing a report to Congress on an annual basis on 
        activities of the Department that affect privacy, including 
        complaints of privacy violations, implementation of the Privacy 
        Act of 1974, internal controls, and other matters.

SEC. 223. ENHANCEMENT OF NON-FEDERAL CYBERSECURITY.

    In carrying out the responsibilities under section 201, the Under 
Secretary for Information Analysis and Infrastructure Protection 
shall--
            (1) as appropriate, provide to State and local government 
        entities, and upon request to private entities that own or 
        operate critical information systems--
                    (A) analysis and warnings related to threats to, 
                and vulnerabilities of, critical information systems; 
                and
                    (B) in coordination with the Under Secretary for 
                Emergency Preparedness and Response, crisis management 
                support in response to threats to, or attacks on, 
                critical information systems; and
            (2) as appropriate, provide technical assistance, upon 
        request, to the private sector and other government entities, 
        in coordination with the Under Secretary for Emergency 
        Preparedness and Response, with respect to emergency recovery 
        plans to respond to major failures of critical information 
        systems.

SEC. 224. NET GUARD.

    The Under Secretary for Information Analysis and Infrastructure 
Protection may establish a national technology guard, to be known as 
``NET Guard'', comprised of local teams of volunteers with expertise in 
relevant areas of science and technology, to assist local communities 
to respond and recover from attacks on information systems and 
communications networks.

SEC. 225. CYBER SECURITY ENHANCEMENT ACT OF 2002.

    (a) Short Title.--This section may be cited as the ``Cyber Security 
Enhancement Act of 2002''.
    (b) Amendment of Sentencing Guidelines Relating to Certain Computer 
Crimes.--
            (1) Directive to the united states sentencing commission.--
        Pursuant to its authority under section 994(p) of title 28, 
        United States Code, and in accordance with this subsection, the 
        United States Sentencing Commission shall review and, if 
        appropriate, amend its guidelines and its policy statements 
        applicable to persons convicted of an offense under section 
        1030 of title 18, United States Code.
            (2) Requirements.--In carrying out this subsection, the 
        Sentencing Commission shall--
                    (A) ensure that the sentencing guidelines and 
                policy statements reflect the serious nature of the 
                offenses described in paragraph (1), the growing 
                incidence of such offenses, and the need for an 
                effective deterrent and appropriate punishment to 
                prevent such offenses;
                    (B) consider the following factors and the extent 
                to which the guidelines may or may not account for 
                them--
                            (i) the potential and actual loss resulting 
                        from the offense;
                            (ii) the level of sophistication and 
                        planning involved in the offense;
                            (iii) whether the offense was committed for 
                        purposes of commercial advantage or private 
                        financial benefit;
                            (iv) whether the defendant acted with 
                        malicious intent to cause harm in committing 
                        the offense;
                            (v) the extent to which the offense 
                        violated the privacy rights of individuals 
                        harmed;
                            (vi) whether the offense involved a 
                        computer used by the government in furtherance 
                        of national defense, national security, or the 
                        administration of justice;
                            (vii) whether the violation was intended to 
                        or had the effect of significantly interfering 
                        with or disrupting a critical infrastructure; 
                        and
                            (viii) whether the violation was intended 
                        to or had the effect of creating a threat to 
                        public health or safety, or injury to any 
                        person;
                    (C) assure reasonable consistency with other 
                relevant directives and with other sentencing 
                guidelines;
                    (D) account for any additional aggravating or 
                mitigating circumstances that might justify exceptions 
                to the generally applicable sentencing ranges;
                    (E) make any necessary conforming changes to the 
                sentencing guidelines; and
                    (F) assure that the guidelines adequately meet the 
                purposes of sentencing as set forth in section 
                3553(a)(2) of title 18, United States Code.
    (c) Study and Report on Computer Crimes.--Not later than May 1, 
2003, the United States Sentencing Commission shall submit a brief 
report to Congress that explains any actions taken by the Sentencing 
Commission in response to this section and includes any recommendations 
the Commission may have regarding statutory penalties for offenses 
under section 1030 of title 18, United States Code.
    (d) Emergency Disclosure Exception.--
            (1) In general.--Section 2702(b) of title 18, United States 
        Code, is amended--
                    (A) in paragraph (5), by striking ``or'' at the 
                end;
                    (B) in paragraph (6)(A), by inserting ``or'' at the 
                end;
                    (C) by striking paragraph (6)(C); and
                    (D) by adding at the end the following:
            ``(7) to a Federal, State, or local governmental entity, if 
        the provider, in good faith, believes that an emergency 
        involving danger of death or serious physical injury to any 
        person requires disclosure without delay of communications 
        relating to the emergency.''.
            (2) Reporting of disclosures.--A government entity that 
        receives a disclosure under section 2702(b) of title 18, United 
        States Code, shall file, not later than 90 days after such 
        disclosure, a report to the Attorney General stating the 
        paragraph of that section under which the disclosure was made, 
        the date of the disclosure, the entity to which the disclosure 
        was made, the number of customers or subscribers to whom the 
        information disclosed pertained, and the number of 
        communications, if any, that were disclosed. The Attorney 
        General shall publish all such reports into a single report to 
        be submitted to Congress 1 year after the date of enactment of 
        this Act.
    (e) Good Faith Exception.--Section 2520(d)(3) of title 18, United 
States Code, is amended by inserting ``or 2511(2)(i)'' after 
``2511(3)''.
    (f) Internet Advertising of Illegal Devices.--Section 2512(1)(c) of 
title 18, United States Code, is amended--
            (1) by inserting ``or disseminates by electronic means'' 
        after ``or other publication''; and
            (2) by inserting ``knowing the content of the advertisement 
        and'' before ``knowing or having reason to know''.
    (g) Strengthening Penalties.--Section 1030(c) of title 18, United 
States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) in each of subparagraphs (A) and (C) of paragraph (4), 
        by inserting ``except as provided in paragraph (5),'' before 
        ``a fine under this title'';
            (3) in paragraph (4)(C), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(5)(A) if the offender knowingly or recklessly causes or 
        attempts to cause serious bodily injury from conduct in 
        violation of subsection (a)(5)(A)(i), a fine under this title 
        or imprisonment for not more than 20 years, or both; and
            ``(B) if the offender knowingly or recklessly causes or 
        attempts to cause death from conduct in violation of subsection 
        (a)(5)(A)(i), a fine under this title or imprisonment for any 
        term of years or for life, or both.''.
    (h) Provider Assistance.--
            (1) Section 2703.--Section 2703(e) of title 18, United 
        States Code, is amended by inserting ``, statutory 
        authorization'' after ``subpoena''.
            (2) Section 2511.--Section 2511(2)(a)(ii) of title 18, 
        United States Code, is amended by inserting ``, statutory 
        authorization,'' after ``court order'' the last place it 
        appears.
    (i) Emergencies.--Section 3125(a)(1) of title 18, United States 
Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the comma at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(C) an immediate threat to a national security 
                interest; or
                    ``(D) an ongoing attack on a protected computer (as 
                defined in section 1030) that constitutes a crime 
                punishable by a term of imprisonment greater than one 
                year;''.
    (j) Protecting Privacy.--
            (1) Section 2511.--Section 2511(4) of title 18, United 
        States Code, is amended--
                    (A) by striking paragraph (b); and
                    (B) by redesignating paragraph (c) as paragraph 
                (b).
            (2) Section 2701.--Section 2701(b) of title 18, United 
        States Code, is amended--
                    (A) in paragraph (1), by inserting ``, or in 
                furtherance of any criminal or tortious act in 
                violation of the Constitution or laws of the United 
                States or any State'' after ``commercial gain'';
                    (B) in paragraph (1)(A), by striking ``one year'' 
                and inserting ``5 years'';
                    (C) in paragraph (1)(B), by striking ``two years'' 
                and inserting ``10 years''; and
                    (D) by striking paragraph (2) and inserting the 
                following:
            ``(2) in any other case--
                    ``(A) a fine under this title or imprisonment for 
                not more than 1 year or both, in the case of a first 
                offense under this paragraph; and
                    ``(B) a fine under this title or imprisonment for 
                not more than 5 years, or both, in the case of an 
                offense under this subparagraph that occurs after a 
                conviction of another offense under this section.''.

              Subtitle D--Office of Science and Technology

SEC. 231. ESTABLISHMENT OF OFFICE; DIRECTOR.

    (a) Establishment.--
            (1) In general.--There is hereby established within the 
        Department of Justice an Office of Science and Technology 
        (hereinafter in this title referred to as the ``Office'').
            (2) Authority.--The Office shall be under the general 
        authority of the Assistant Attorney General, Office of Justice 
        Programs, and shall be established within the National 
        Institute of Justice.
    (b) Director.--The Office shall be headed by a Director, who shall 
be an individual appointed based on approval by the Office of Personnel 
Management of the executive qualifications of the individual.

SEC. 232. MISSION OF OFFICE; DUTIES.

    (a) Mission.--The mission of the Office shall be--
            (1) to serve as the national focal point for work on law 
        enforcement technology; and
            (2) to carry out programs that, through the provision of 
        equipment, training, and technical assistance, improve the 
        safety and effectiveness of law enforcement technology and 
        improve access to such technology by Federal, State, and local 
        law enforcement agencies.
    (b) Duties.--In carrying out its mission, the Office shall have the 
following duties:
            (1) To provide recommendations and advice to the Attorney 
        General.
            (2) To establish and maintain advisory groups (which shall 
        be exempt from the provisions of the Federal Advisory Committee 
        Act (5 U.S.C. App.)) to assess the law enforcement technology 
        needs of Federal, State, and local law enforcement agencies.
            (3) To establish and maintain performance standards in 
        accordance with the National Technology Transfer and 
        Advancement Act of 1995 (Public Law 104-113) for, and test and 
        evaluate law enforcement technologies that may be used by, 
        Federal, State, and local law enforcement agencies.
            (4) To establish and maintain a program to certify, 
        validate, and mark or otherwise recognize law enforcement 
        technology products that conform to standards established and 
        maintained by the Office in accordance with the National 
        Technology Transfer and Advancement Act of 1995 (Public Law 
        104-113). The program may, at the discretion of the Office, 
        allow for supplier's declaration of conformity with such 
        standards.
            (5) To work with other entities within the Department of 
        Justice, other Federal agencies, and the executive office of 
        the President to establish a coordinated Federal approach on 
        issues related to law enforcement technology.
            (6) To carry out research, development, testing, 
        evaluation, and cost-benefit analyses in fields that would 
        improve the safety, effectiveness, and efficiency of law 
        enforcement technologies used by Federal, State, and local law 
        enforcement agencies, including, but not limited to--
                    (A) weapons capable of preventing use by 
                unauthorized persons, including personalized guns;
                    (B) protective apparel;
                    (C) bullet-resistant and explosion-resistant glass;
                    (D) monitoring systems and alarm systems capable of 
                providing precise location information;
                    (E) wire and wireless interoperable communication 
                technologies;
                    (F) tools and techniques that facilitate 
                investigative and forensic work, including computer 
                forensics;
                    (G) equipment for particular use in 
                counterterrorism, including devices and technologies to 
                disable terrorist devices;
                    (H) guides to assist State and local law 
                enforcement agencies;
                    (I) DNA identification technologies; and
                    (J) tools and techniques that facilitate 
                investigations of computer crime.
            (7) To administer a program of research, development, 
        testing, and demonstration to improve the interoperability of 
        voice and data public safety communications.
            (8) To serve on the Technical Support Working Group of the 
        Department of Defense, and on other relevant interagency 
        panels, as requested.
            (9) To develop, and disseminate to State and local law 
        enforcement agencies, technical assistance and training 
        materials for law enforcement personnel, including prosecutors.
            (10) To operate the regional National Law Enforcement and 
        Corrections Technology Centers and, to the extent necessary, 
        establish additional centers through a competitive process.
            (11) To administer a program of acquisition, research, 
        development, and dissemination of advanced investigative 
        analysis and forensic tools to assist State and local law 
        enforcement agencies in combating cybercrime.
            (12) To support research fellowships in support of its 
        mission.
            (13) To serve as a clearinghouse for information on law 
        enforcement technologies.
            (14) To represent the United States and State and local law 
        enforcement agencies, as requested, in international activities 
        concerning law enforcement technology.
            (15) To enter into contracts and cooperative agreements and 
        provide grants, which may require in-kind or cash matches from 
        the recipient, as necessary to carry out its mission.
            (16) To carry out other duties assigned by the Attorney 
        General to accomplish the mission of the Office.
    (c) Competition Required.--Except as otherwise expressly provided 
by law, all research and development carried out by or through the 
Office shall be carried out on a competitive basis.
    (d) Information From Federal Agencies.--Federal agencies shall, 
upon request from the Office and in accordance with Federal law, 
provide the Office with any data, reports, or other information 
requested, unless compliance with such request is otherwise prohibited 
by law.
    (e) Publications.--Decisions concerning publications issued by the 
Office shall rest solely with the Director of the Office.
    (f) Transfer of Funds.--The Office may transfer funds to other 
Federal agencies or provide funding to non-Federal entities through 
grants, cooperative agreements, or contracts to carry out its duties 
under this section.
    (g) Annual Report.--The Director of the Office shall include with 
the budget justification materials submitted to Congress in support of 
the Department of Justice budget for each fiscal year (as submitted 
with the budget of the President under section 1105(a) of title 31, 
United States Code) a report on the activities of the Office. Each such 
report shall include the following:
            (1) For the period of 5 fiscal years beginning with the 
        fiscal year for which the budget is submitted--
                    (A) the Director's assessment of the needs of 
                Federal, State, and local law enforcement agencies for 
                assistance with respect to law enforcement technology 
                and other matters consistent with the mission of the 
                Office; and
                    (B) a strategic plan for meeting such needs of such 
                law enforcement agencies.
            (2) For the fiscal year preceding the fiscal year for which 
        such budget is submitted, a description of the activities 
        carried out by the Office and an evaluation of the extent to 
        which those activities successfully meet the needs assessed 
        under paragraph (1)(A) in previous reports.

SEC. 233. DEFINITION OF LAW ENFORCEMENT TECHNOLOGY.

    For the purposes of this title, the term ``law enforcement 
technology'' includes investigative and forensic technologies, 
corrections technologies, and technologies that support the judicial 
process.

SEC. 234. ABOLISHMENT OF OFFICE OF SCIENCE AND TECHNOLOGY OF NATIONAL 
              INSTITUTE OF JUSTICE; TRANSFER OF FUNCTIONS.

    (a) Authority To Transfer Functions.--The Attorney General may 
transfer to the Office any other program or activity of the Department 
of Justice that the Attorney General, in consultation with the 
Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives, determines to be consistent 
with the mission of the Office.
    (b) Transfer of Personnel and Assets.--With respect to any 
function, power, or duty, or any program or activity, that is 
established in the Office, those employees and assets of the element of 
the Department of Justice from which the transfer is made that the 
Attorney General determines are needed to perform that function, power, 
or duty, or for that program or activity, as the case may be, shall be 
transferred to the Office.
    (c) Report on Implementation.--Not later than 1 year after the date 
of the enactment of this Act, 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 
implementation of this title. The report shall--
            (1) provide an accounting of the amounts and sources of 
        funding available to the Office to carry out its mission under 
        existing authorizations and appropriations, and set forth the 
        future funding needs of the Office; and
            (2) include such other information and recommendations as 
        the Attorney General considers appropriate.

SEC. 235. NATIONAL LAW ENFORCEMENT AND CORRECTIONS TECHNOLOGY CENTERS.

    (a) In General.--The Director of the Office shall operate and 
support National Law Enforcement and Corrections Technology Centers 
(hereinafter in this section referred to as ``Centers'') and, to the 
extent necessary, establish new centers through a merit-based, 
competitive process.
    (b) Purpose of Centers.--The purpose of the Centers shall be to--
            (1) support research and development of law enforcement 
        technology;
            (2) support the transfer and implementation of technology;
            (3) assist in the development and dissemination of 
        guidelines and technological standards; and
            (4) provide technology assistance, information, and support 
        for law enforcement, corrections, and criminal justice 
        purposes.
    (c) Annual Meeting.--Each year, the Director shall convene a 
meeting of the Centers in order to foster collaboration and 
communication between Center participants.
    (d) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Director shall transmit to the Congress a 
report assessing the effectiveness of the existing system of Centers 
and identify the number of Centers necessary to meet the technology 
needs of Federal, State, and local law enforcement in the United 
States.

SEC. 236. COORDINATION WITH OTHER ENTITIES WITHIN DEPARTMENT OF 
              JUSTICE.

    Section 102 of the Omnibus Crime Control and Safe Streets Act of 
1968 (42 U.S.C. 3712) is amended in subsection (a)(5) by inserting 
``coordinate and'' before ``provide''.

SEC. 237. AMENDMENTS RELATING TO NATIONAL INSTITUTE OF JUSTICE.

    Section 202(c) of the Omnibus Crime Control and Safety Streets Act 
of 1968 (42 U.S.C. 3722(c)) is amended--
            (1) in paragraph (3) by inserting ``, including cost 
        effectiveness where practical,'' before ``of projects''; and
            (2) by striking ``and'' after the semicolon at the end of 
        paragraph (8), striking the period at the end of paragraph (9) 
        and inserting ``; and'', and by adding at the end the 
        following:
            ``(10) research and development of tools and technologies 
        relating to prevention, detection, investigation, and 
        prosecution of crime; and
            ``(11) support research, development, testing, training, 
        and evaluation of tools and technology for Federal, State, and 
        local law enforcement agencies.''.

   TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

SEC. 301. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

    There shall be in the Department a Directorate of Science and 
Technology headed by an Under Secretary for Science and Technology.

SEC. 302. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR 
              SCIENCE AND TECHNOLOGY.

    The Secretary, acting through the Under Secretary for Science and 
Technology, shall have the responsibility for--
            (1) advising the Secretary regarding research and 
        development efforts and priorities in support of the 
        Department's missions;
            (2) developing, in consultation with other appropriate 
        executive agencies, a national policy and strategic plan for, 
        identifying priorities, goals, objectives and policies for, and 
        coordinating the Federal Government's civilian efforts to 
        identify and develop countermeasures to chemical, biological, 
        radiological, nuclear, and other emerging terrorist threats, 
        including the development of comprehensive, research-based 
        definable goals for such efforts and development of annual 
        measurable objectives and specific targets to accomplish and 
        evaluate the goals for such efforts;
            (3) supporting the Under Secretary for Information Analysis 
        and Infrastructure Protection, by assessing and testing 
        homeland security vulnerabilities and possible threats;
            (4) conducting basic and applied research, development, 
        demonstration, testing, and evaluation activities that are 
        relevant to any or all elements of the Department, through both 
        intramural and extramural programs, except that such 
        responsibility does not extend to human health-related research 
        and development activities;
            (5) establishing priorities for, directing, funding, and 
        conducting national research, development, test and evaluation, 
        and procurement of technology and systems for--
                    (A) preventing the importation of chemical, 
                biological, radiological, nuclear, and related weapons 
                and material; and
                    (B) detecting, preventing, protecting against, and 
                responding to terrorist attacks;
            (6) establishing a system for transferring homeland 
        security developments or technologies to federal, state, local 
        government, and private sector entities;
            (7) entering into work agreements, joint sponsorships, 
        contracts, or any other agreements with the Department of 
        Energy regarding the use of the national laboratories or sites 
        and support of the science and technology base at those 
        facilities;
            (8) collaborating with the Secretary of Agriculture and the 
        Attorney General as provided in section 212 of the Agricultural 
        Bioterrorism Protection Act of 2002 (7 U.S.C. 8401), as amended 
        by section 1709(b);
            (9) collaborating with the Secretary of Health and Human 
        Services and the Attorney General in determining any new 
        biological agents and toxins that shall be listed as ``select 
        agents'' in Appendix A of part 72 of title 42, Code of Federal 
        Regulations, pursuant to section 351A of the Public Health 
        Service Act (42 U.S.C. 262a);
            (10) supporting United States leadership in science and 
        technology;
            (11) establishing and administering the primary research 
        and development activities of the Department, including the 
        long-term research and development needs and capabilities for 
        all elements of the Department;
            (12) coordinating and integrating all research, 
        development, demonstration, testing, and evaluation activities 
        of the Department;
            (13) coordinating with other appropriate executive agencies 
        in developing and carrying out the science and technology 
        agenda of the Department to reduce duplication and identify 
        unmet needs; and
            (14) developing and overseeing the administration of 
        guidelines for merit review of research and development 
        projects throughout the Department, and for the dissemination 
        of research conducted or sponsored by the Department.

SEC. 303. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the 
Secretary the functions, personnel, assets, and liabilities of the 
following entities:
            (1) The following programs and activities of the Department 
        of Energy, including the functions of the Secretary of Energy 
        relating thereto (but not including programs and activities 
        relating to the strategic nuclear defense posture of the United 
        States):
                    (A) The chemical and biological national security 
                and supporting programs and activities of the 
                nonproliferation and verification research and 
                development program.
                    (B) The nuclear smuggling programs and activities 
                within the proliferation detection program of the 
                nonproliferation and verification research and 
                development program. The programs and activities 
                described in this subparagraph may be designated by the 
                President either for transfer to the Department or for 
                joint operation by the Secretary and the Secretary of 
                Energy.
                    (C) The nuclear assessment program and activities 
                of the assessment, detection, and cooperation program 
                of the international materials protection and 
                cooperation program.
                    (D) Such life sciences activities of the biological 
                and environmental research program related to microbial 
                pathogens as may be designated by the President for 
                transfer to the Department.
                    (E) The Environmental Measurements Laboratory.
                    (F) The advanced scientific computing research 
                program and activities at Lawrence Livermore National 
                Laboratory.
            (2) The National Bio-Weapons Defense Analysis Center of the 
        Department of Defense, including the functions of the Secretary 
        of Defense related thereto.

SEC. 304. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

    (a) In General.--With respect to civilian human health-related 
research and development activities relating to countermeasures for 
chemical, biological, radiological, and nuclear and other emerging 
terrorist threats carried out by the Department of Health and Human 
Services (including the Public Health Service), the Secretary of Health 
and Human Services shall set priorities, goals, objectives, and 
policies and develop a coordinated strategy for such activities in 
collaboration with the Secretary of Homeland Security to ensure 
consistency with the national policy and strategic plan developed 
pursuant to section 302(2).
    (b) Evaluation of Progress.--In carrying out subsection (a), the 
Secretary of Health and Human Services shall collaborate with the 
Secretary in developing specific benchmarks and outcome measurements 
for evaluating progress toward achieving the priorities and goals 
described in such subsection.
    (c) Administration of Countermeasures Against Smallpox.--Section 
224 of the Public Health Service Act (42 U.S.C. 233) is amended by 
adding the following:
    ``(p) Administration of Smallpox Countermeasures by Health 
Professionals.--
            ``(1) In general.--For purposes of this section, and 
        subject to other provisions of this subsection, a covered 
        person shall be deemed to be an employee of the Public Health 
        Service with respect to liability arising out of administration 
        of a covered countermeasure against smallpox to an individual 
        during the effective period of a declaration by the Secretary 
        under paragraph (2)(A).
            ``(2) Declaration by secretary concerning countermeasure 
        against smallpox.--
                    ``(A) Authority to issue declaration.--
                            ``(i) In general.--The Secretary may issue 
                        a declaration, pursuant to this paragraph, 
                        concluding that an actual or potential 
                        bioterrorist incident or other actual or 
                        potential public health emergency makes 
                        advisable the administration of a covered 
                        countermeasure to a category or categories of 
                        individuals.
                            ``(ii) Covered countermeasure.--The 
                        Secretary shall specify in such declaration the 
                        substance or substances that shall be 
                        considered covered countermeasures (as defined 
                        in paragraph (8)(A)) for purposes of 
                        administration to individuals during the 
                        effective period of the declaration.
                            ``(iii) Effective period.--The Secretary 
                        shall specify in such declaration the beginning 
                        and ending dates of the effective period of the 
                        declaration, and may subsequently amend such 
                        declaration to shorten or extend such effective 
                        period, provided that the new closing date is 
                        after the date when the declaration is amended.
                            ``(iv) Publication.--The Secretary shall 
                        promptly publish each such declaration and 
                        amendment in the Federal Register.
                    ``(B) Liability of united states only for 
                administrations within scope of declaration.--Except as 
                provided in paragraph (5)(B)(ii), the United States 
                shall be liable under this subsection with respect to a 
                claim arising out of the administration of a covered 
                countermeasure to an individual only if--
                            ``(i) the countermeasure was administered 
                        by a qualified person, for a purpose stated in 
                        paragraph (7)(A)(i), and during the effective 
                        period of a declaration by the Secretary under 
                        subparagraph (A) with respect to such 
                        countermeasure; and
                            ``(ii)(I) the individual was within a 
                        category of individuals covered by the 
                        declaration; or
                            ``(II) the qualified person administering 
                        the countermeasure had reasonable grounds to 
                        believe that such individual was within such 
                        category.
                    ``(C) Presumption of administration within scope of 
                declaration in case of accidental vaccinia 
                inoculation.--
                            ``(i) In general.--If vaccinia vaccine is a 
                        covered countermeasure specified in a 
                        declaration under subparagraph (A), and an 
                        individual to whom the vaccinia vaccine is not 
                        administered contracts vaccinia, then, under 
                        the circumstances specified in clause (ii), the 
                        individual--
                                    ``(I) shall be rebuttably presumed 
                                to have contracted vaccinia from an 
                                individual to whom such vaccine was 
                                administered as provided by clauses (i) 
                                and (ii) of subparagraph (B); and
                                    ``(II) shall (unless such 
                                presumption is rebutted) be deemed for 
                                purposes of this subsection to be an 
                                individual to whom a covered 
                                countermeasure was administered by a 
                                qualified person in accordance with the 
                                terms of such declaration and as 
                                described by subparagraph (B).
                            ``(ii) Circumstances in which presumption 
                        applies.--The presumption and deeming stated in 
                        clause (i) shall apply if--
                                    ``(I) the individual contracts 
                                vaccinia during the effective period of 
                                a declaration under subparagraph (A) or 
                                by the date 30 days after the close of 
                                such period; or
                                    ``(II) the individual resides or 
                                has resided with an individual to whom 
                                such vaccine was administered as 
                                provided by clauses (i) and (ii) of 
                                subparagraph (B) and contracts vaccinia 
                                after such date.
            ``(3) Exclusivity of remedy.--The remedy provided by 
        subsection (a) shall be exclusive of any other civil action or 
        proceeding for any claim or suit this subsection encompasses.
            ``(4) Certification of action by attorney general.--
        Subsection (c) applies to actions under this subsection, 
        subject to the following provisions:
                    ``(A) Nature of certification.--The certification 
                by the Attorney General that is the basis for deeming 
                an action or proceeding to be against the United 
                States, and for removing an action or proceeding from a 
                State court, is a certification that the action or 
                proceeding is against a covered person and is based 
                upon a claim alleging personal injury or death arising 
                out of the administration of a covered countermeasure.
                    ``(B) Certification of attorney general 
                conclusive.--The certification of the Attorney General 
                of the facts specified in subparagraph (A) shall 
                conclusively establish such facts for purposes of 
                jurisdiction pursuant to this subsection.
            ``(5) Defendant to cooperate with united states.--
                    ``(A) In general.--A covered person shall cooperate 
                with the United States in the processing and defense of 
                a claim or action under this subsection based upon 
                alleged acts or omissions of such person.
                    ``(B) Consequences of failure to cooperate.--Upon 
                the motion of the United States or any other party and 
                upon finding that such person has failed to so 
                cooperate--
                            ``(i) the court shall substitute such 
                        person as the party defendant in place of the 
                        United States and, upon motion, shall remand 
                        any such suit to the court in which it was 
                        instituted if it appears that the court lacks 
                        subject matter jurisdiction;
                            ``(ii) the United States shall not be 
                        liable based on the acts or omissions of such 
                        person; and
                            ``(iii) the Attorney General shall not be 
                        obligated to defend such action.
            ``(6) Recourse against covered person in case of gross 
        misconduct or contract violation.--
                    ``(A) In general.--Should payment be made by the 
                United States to any claimant bringing a claim under 
                this subsection, either by way of administrative 
                determination, settlement, or court judgment, the 
                United States shall have, notwithstanding any provision 
                of State law, the right to recover for that portion of 
                the damages so awarded or paid, as well as interest and 
                any costs of litigation, resulting from the failure of 
                any covered person to carry out any obligation or 
                responsibility assumed by such person under a contract 
                with the United States or from any grossly negligent, 
                reckless, or illegal conduct or willful misconduct on 
                the part of such person.
                    ``(B) Venue.--The United States may maintain an 
                action under this paragraph against such person in the 
                district court of the United States in which such 
                person resides or has its principal place of business.
            ``(7) Definitions.--As used in this subsection, terms have 
        the following meanings:
                    ``(A) Covered countermeasure.--The term `covered 
                countermeasure', or `covered countermeasure against 
                smallpox', means a substance that is--
                            ``(i)(I) used to prevent or treat smallpox 
                        (including the vaccinia or another vaccine); or
                            ``(II) vaccinia immune globulin used to 
                        control or treat the adverse effects of 
                        vaccinia inoculation; and
                            ``(ii) specified in a declaration under 
                        paragraph (2).
                    ``(B) Covered person.--The term `covered person', 
                when used with respect to the administration of a 
                covered countermeasure, includes any person who is--
                            ``(i) a manufacturer or distributor of such 
                        countermeasure;
                            ``(ii) a health care entity under whose 
                        auspices such countermeasure was administered;
                            ``(iii) a qualified person who administered 
                        such countermeasure; or
                            ``(iv) an official, agent, or employee of a 
                        person described in clause (i), (ii), or (iii).
                    ``(C) Qualified person.--The term `qualified 
                person', when used with respect to the administration 
                of a covered countermeasure, means a licensed health 
                professional or other individual who is authorized to 
                administer such countermeasure under the law of the 
                State in which the countermeasure was administered.''.

SEC. 305. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    The Secretary, acting through the Under Secretary for Science and 
Technology, shall have the authority to establish or contract with 1 or 
more federally funded research and development centers to provide 
independent analysis of homeland security issues, or to carry out other 
responsibilities under this Act, including coordinating and integrating 
both the extramural and intramural programs described in section 308.

SEC. 306. MISCELLANEOUS PROVISIONS.

    (a) Classification.--To the greatest extent practicable, research 
conducted or supported by the Department shall be unclassified.
    (b) Construction.--Nothing in this title shall be construed to 
preclude any Under Secretary of the Department from carrying out 
research, development, demonstration, or deployment activities, as long 
as such activities are coordinated through the Under Secretary for 
Science and Technology.
    (c) Regulations.--The Secretary, acting through the Under Secretary 
for Science and Technology, may issue necessary regulations with 
respect to research, development, demonstration, testing, and 
evaluation activities of the Department, including the conducting, 
funding, and reviewing of such activities.
    (d) Notification of Presidential Life Sciences Designations.--Not 
later than 60 days before effecting any transfer of Department of 
Energy life sciences activities pursuant to section 303(1)(D) of this 
Act, the President shall notify the appropriate congressional 
committees of the proposed transfer and shall include the reasons for 
the transfer and a description of the effect of the transfer on the 
activities of the Department of Energy.

SEC. 307. HOMELAND SECURITY ADVANCED RESEARCH PROJECTS AGENCY.

    (a) Definitions.--In this section:
            (1) Fund.--The term ``Fund'' means the Acceleration Fund 
        for Research and Development of Homeland Security Technologies 
        established in subsection (c).
            (2) Homeland security research.--The term ``homeland 
        security research'' means research relevant to the detection 
        of, prevention of, protection against, response to, attribution 
        of, and recovery from homeland security threats, particularly 
        acts of terrorism.
            (3) Hsarpa.--The term ``HSARPA'' means the Homeland 
        Security Advanced Research Projects Agency established in 
        subsection (b).
            (4) Under secretary.--The term ``Under Secretary'' means 
        the Under Secretary for Science and Technology.
    (b) HSARPA.--
            (1) Establishment.--There is established the Homeland 
        Security Advanced Research Projects Agency.
            (2) Director.--HSARPA shall be headed by a Director, who 
        shall be appointed by the Secretary. The Director shall report 
        to the Under Secretary.
            (3) Responsibilities.--The Director shall administer the 
        Fund to award competitive, merit-reviewed grants, cooperative 
        agreements or contracts to public or private entities, 
        including businesses, federally funded research and development 
        centers, and universities. The Director shall administer the 
        Fund to--
                    (A) support basic and applied homeland security 
                research to promote revolutionary changes in 
                technologies that would promote homeland security;
                    (B) advance the development, testing and 
                evaluation, and deployment of critical homeland 
                security technologies; and
                    (C) accelerate the prototyping and deployment of 
                technologies that would address homeland security 
                vulnerabilities.
            (4) Targeted competitions.--The Director may solicit 
        proposals to address specific vulnerabilities identified by the 
        Director.
            (5) Coordination.--The Director shall ensure that the 
        activities of HSARPA are coordinated with those of other 
        relevant research agencies, and may run projects jointly with 
        other agencies.
            (6) Personnel.--In hiring personnel for HSARPA, the 
        Secretary shall have the hiring and management authorities 
        described in section 1101 of the Strom Thurmond National 
        Defense Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 
        note; Public Law 105-261). The term of appointments for 
        employees under subsection (c)(1) of that section may not 
        exceed 5 years before the granting of any extension under 
        subsection (c)(2) of that section.
            (7) Demonstrations.--The Director, periodically, shall hold 
        homeland security technology demonstrations to improve contact 
        among technology developers, vendors and acquisition personnel.
    (c) Fund.--
            (1) Establishment.--There is established the Acceleration 
        Fund for Research and Development of Homeland Security 
        Technologies, which shall be administered by the Director of 
        HSARPA.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated $500,000,000 to the Fund for fiscal year 
        2003 and such sums as may be necessary thereafter.
            (3) Coast guard.--Of the funds authorized to be 
        appropriated under paragraph (2), not less than 10 percent of 
        such funds for each fiscal year through fiscal year 2005 shall 
        be authorized only for the Under Secretary, through joint 
        agreement with the Commandant of the Coast Guard, to carry out 
        research and development of improved ports, waterways and 
        coastal security surveillance and perimeter protection 
        capabilities for the purpose of minimizing the possibility that 
        Coast Guard cutters, aircraft, helicopters, and personnel will 
        be diverted from non-homeland security missions to the ports, 
        waterways and coastal security mission.

SEC. 308. CONDUCT OF RESEARCH, DEVELOPMENT, DEMONSTRATION, TESTING AND 
              EVALUATION.

    (a) In General.--The Secretary, acting through the Under Secretary 
for Science and Technology, shall carry out the responsibilities under 
section 302(4) through both extramural and intramural programs.
    (b) Extramural Programs.--
            (1) In general.--The Secretary, acting through the Under 
        Secretary for Science and Technology, shall operate extramural 
        research, development, demonstration, testing, and evaluation 
        programs so as to--
                    (A) ensure that colleges, universities, private 
                research institutes, and companies (and consortia 
                thereof) from as many areas of the United States as 
                practicable participate;
                    (B) ensure that the research funded is of high 
                quality, as determined through merit review processes 
                developed under section 302(14); and
                    (C) distribute funds through grants, cooperative 
                agreements, and contracts.
            (2) University-based centers for homeland security.--
                    (A) Establishment.--The Secretary, acting through 
                the Under Secretary for Science and Technology, shall 
                establish within 1 year of the date of enactment of 
                this Act a university-based center or centers for 
                homeland security. The purpose of this center or 
                centers shall be to establish a coordinated, 
                university-based system to enhance the Nation's 
                homeland security.
                    (B) Criteria for selection.--In selecting colleges 
                or universities as centers for homeland security, the 
                Secretary shall consider the following criteria:
                            (i) Demonstrated expertise in the training 
                        of first responders.
                            (ii) Demonstrated expertise in responding 
                        to incidents involving weapons of mass 
                        destruction and biological warfare.
                            (iii) Demonstrated expertise in emergency 
                        medical services.
                            (iv) Demonstrated expertise in chemical, 
                        biological, radiological, and nuclear 
                        countermeasures.
                            (v) Strong affiliations with animal and 
                        plant diagnostic laboratories.
                            (vi) Demonstrated expertise in food safety.
                            (vii) Affiliation with Department of 
                        Agriculture laboratories or training centers.
                            (viii) Demonstrated expertise in water and 
                        wastewater operations.
                            (ix) Demonstrated expertise in port and 
                        waterway security.
                            (x) Demonstrated expertise in multi-modal 
                        transportation.
                            (xi) Nationally recognized programs in 
                        information security.
                            (xii) Nationally recognized programs in 
                        engineering.
                            (xiii) Demonstrated expertise in 
                        educational outreach and technical assistance.
                            (xiv) Demonstrated expertise in border 
                        transportation and security.
                            (xv) Demonstrated expertise in 
                        interdisciplinary public policy research and 
                        communication outreach regarding science, 
                        technology, and public policy.
                    (C) Discretion of secretary.--The Secretary shall 
                have the discretion to establish such centers and to 
                consider additional criteria as necessary to meet the 
                evolving needs of homeland security and shall report to 
                Congress concerning the implementation of this 
                paragraph as necessary.
                    (D) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph.
    (c) Intramural Programs.--
            (1) Consultation.--In carrying out the duties under section 
        302, the Secretary, acting through the Under Secretary for 
        Science and Technology, may draw upon the expertise of any 
        laboratory of the Federal Government, whether operated by a 
        contractor or the Government.
            (2) Laboratories.--The Secretary, acting through the Under 
        Secretary for Science and Technology, may establish a 
        headquarters laboratory for the Department at any laboratory or 
        site and may establish additional laboratory units at other 
        laboratories or sites.
            (3) Criteria for headquarters laboratory.--If the Secretary 
        chooses to establish a headquarters laboratory pursuant to 
        paragraph (2), then the Secretary shall do the following:
                    (A) Establish criteria for the selection of the 
                headquarters laboratory in consultation with the 
                National Academy of Sciences, appropriate Federal 
                agencies, and other experts.
                    (B) Publish the criteria in the Federal Register.
                    (C) Evaluate all appropriate laboratories or sites 
                against the criteria.
                    (D) Select a laboratory or site on the basis of the 
                criteria.
                    (E) Report to the appropriate congressional 
                committees on which laboratory was selected, how the 
                selected laboratory meets the published criteria, and 
                what duties the headquarters laboratory shall perform.
            (4) Limitation on operation of laboratories.--No laboratory 
        shall begin operating as the headquarters laboratory of the 
        Department until at least 30 days after the transmittal of the 
        report required by paragraph (3)(E).

SEC. 309. UTILIZATION OF DEPARTMENT OF ENERGY NATIONAL LABORATORIES AND 
              SITES IN SUPPORT OF HOMELAND SECURITY ACTIVITIES.

    (a) Authority to Utilize National Laboratories and Sites.--
            (1) In general.--In carrying out the missions of the 
        Department, the Secretary may utilize the Department of Energy 
        national laboratories and sites through any 1 or more of the 
        following methods, as the Secretary considers appropriate:
                    (A) A joint sponsorship arrangement referred to in 
                subsection (b).
                    (B) A direct contract between the Department and 
                the applicable Department of Energy laboratory or site, 
                subject to subsection (c).
                    (C) Any ``work for others'' basis made available by 
                that laboratory or site.
                    (D) Any other method provided by law.
            (2) Acceptance and Performance by Labs and Sites.--
        Notwithstanding any other law governing the administration, 
        mission, use, or operations of any of the Department of Energy 
        national laboratories and sites, such laboratories and sites 
        are authorized to accept and perform work for the Secretary, 
        consistent with resources provided, and perform such work on an 
        equal basis to other missions at the laboratory and not on a 
        noninterference basis with other missions of such laboratory or 
        site.
    (b) Joint Sponsorship Arrangements.--
            (1) Laboratories.--The Department may be a joint sponsor, 
        under a multiple agency sponsorship arrangement with the 
        Department of Energy, of 1 or more Department of Energy 
        national laboratories in the performance of work.
            (2) Sites.--The Department may be a joint sponsor of a 
        Department of Energy site in the performance of work as if such 
        site were a federally funded research and development center 
        and the work were performed under a multiple agency sponsorship 
        arrangement with the Department.
            (3) Primary sponsor.--The Department of Energy shall be the 
        primary sponsor under a multiple agency sponsorship arrangement 
        referred to in paragraph (1) or (2).
            (4) Lead agent.--The Secretary of Energy shall act as the 
        lead agent in coordinating the formation and performance of a 
        joint sponsorship arrangement under this subsection between the 
        Department and a Department of Energy national laboratory or 
        site.
            (5) Federal acquisition regulation.--Any work performed by 
        a Department of Energy national laboratory or site under a 
        joint sponsorship arrangement under this subsection shall 
        comply with the policy on the use of federally funded research 
        and development centers under the Federal Acquisition 
        Regulations.
            (6) Funding.--The Department shall provide funds for work 
        at the Department of Energy national laboratories or sites, as 
        the case may be, under a joint sponsorship arrangement under 
        this subsection under the same terms and conditions as apply to 
        the primary sponsor of such national laboratory under section 
        303(b)(1)(C) of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253 (b)(1)(C)) or of such site 
        to the extent such section applies to such site as a federally 
        funded research and development center by reason of this 
        subsection.
    (c) Separate Contracting.--To the extent that programs or 
activities transferred by this Act from the Department of Energy to the 
Department of Homeland Security are being carried out through direct 
contracts with the operator of a national laboratory or site of the 
Department of Energy, the Secretary of Homeland Security and the 
Secretary of Energy shall ensure that direct contracts for such 
programs and activities between the Department of Homeland Security and 
such operator are separate from the direct contracts of the Department 
of Energy with such operator.
    (d) Authority With Respect to Cooperative Research and Development 
Agreements and Licensing Agreements.--In connection with any 
utilization of the Department of Energy national laboratories and sites 
under this section, the Secretary may permit the director of any such 
national laboratory or site to enter into cooperative research and 
development agreements or to negotiate licensing agreements with any 
person, any agency or instrumentality, of the United States, any unit 
of State or local government, and any other entity under the authority 
granted by section 12 of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3710a). Technology may be transferred to a non-
Federal party to such an agreement consistent with the provisions of 
sections 11 and 12 of that Act (15 U.S.C. 3710, 3710a).
    (e) Reimbursement of Costs.--In the case of an activity carried out 
by the operator of a Department of Energy national laboratory or site 
in connection with any utilization of such laboratory or site under 
this section, the Department of Homeland Security shall reimburse the 
Department of Energy for costs of such activity through a method under 
which the Secretary of Energy waives any requirement for the Department 
of Homeland Security to pay administrative charges or personnel costs 
of the Department of Energy or its contractors in excess of the amount 
that the Secretary of Energy pays for an activity carried out by such 
contractor and paid for by the Department of Energy.
    (f) Laboratory Directed Research and Development by the Department 
of Energy.--No funds authorized to be appropriated or otherwise made 
available to the Department in any fiscal year may be obligated or 
expended for laboratory directed research and development activities 
carried out by the Department of Energy unless such activities support 
the missions of the Department of Homeland Security.
    (g) Office for National Laboratories.--There is established within 
the Directorate of Science and Technology an Office for National 
Laboratories, which shall be responsible for the coordination and 
utilization of the Department of Energy national laboratories and sites 
under this section in a manner to create a networked laboratory system 
for the purpose of supporting the missions of the Department.
    (h) Department of Energy Coordination on Homeland Security Related 
Research.--The Secretary of Energy shall ensure that any research, 
development, test, and evaluation activities conducted within the 
Department of Energy that are directly or indirectly related to 
homeland security are fully coordinated with the Secretary to minimize 
duplication of effort and maximize the effective application of Federal 
budget resources.

SEC. 310. TRANSFER OF PLUM ISLAND ANIMAL DISEASE CENTER, DEPARTMENT OF 
              AGRICULTURE.

    (a) In General.--In accordance with title XV, the Secretary of 
Agriculture shall transfer to the Secretary of Homeland Security the 
Plum Island Animal Disease Center of the Department of Agriculture, 
including the assets and liabilities of the Center.
    (b) Continued Department of Agriculture Access.--On completion of 
the transfer of the Plum Island Animal Disease Center under subsection 
(a), the Secretary of Homeland Security and the Secretary of 
Agriculture shall enter into an agreement to ensure that the Department 
of Agriculture is able to carry out research, diagnostic, and other 
activities of the Department of Agriculture at the Center.
    (c) Direction of Activities.--The Secretary of Agriculture shall 
continue to direct the research, diagnostic, and other activities of 
the Department of Agriculture at the Center described in subsection 
(b).
    (d) Notification.--
            (1) In general.--At least 180 days before any change in the 
        biosafety level at the Plum Island Animal Disease Center, the 
        President shall notify Congress of the change and describe the 
        reasons for the change.
            (2) Limitation.--No change described in paragraph (1) may 
        be made earlier than 180 days after the completion of the 
        transition period (as defined in section 1501.

SEC. 311. HOMELAND SECURITY SCIENCE AND TECHNOLOGY ADVISORY COMMITTEE.

    (a) Establishment.--There is established within the Department a 
Homeland Security Science and Technology Advisory Committee (in this 
section referred to as the ``Advisory Committee''). The Advisory 
Committee shall make recommendations with respect to the activities of 
the Under Secretary for Science and Technology, including identifying 
research areas of potential importance to the security of the Nation.
    (b) Membership.--
            (1) Appointment.--The Advisory Committee shall consist of 
        20 members appointed by the Under Secretary for Science and 
        Technology, which shall include emergency first-responders or 
        representatives of organizations or associations of emergency 
        first-responders. The Advisory Committee shall also include 
        representatives of citizen groups, including economically 
        disadvantaged communities. The individuals appointed as members 
        of the Advisory Committee--
                    (A) shall be eminent in fields such as emergency 
                response, research, engineering, new product 
                development, business, and management consulting;
                    (B) shall be selected solely on the basis of 
                established records of distinguished service;
                    (C) shall not be employees of the Federal 
                Government; and
                    (D) shall be so selected as to provide 
                representation of a cross-section of the research, 
                development, demonstration, and deployment activities 
                supported by the Under Secretary for Science and 
                Technology.
            (2) National research council.--The Under Secretary for 
        Science and Technology may enter into an arrangement for the 
        National Research Council to select members of the Advisory 
        Committee, but only if the panel used by the National Research 
        Council reflects the representation described in paragraph (1).
    (c) Terms of Office.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the term of office of each member of the Advisory 
        Committee shall be 3 years.
            (2) Original appointments.--The original members of the 
        Advisory Committee shall be appointed to three classes of three 
        members each. One class shall have a term of 1 year, 1 a term 
        of 2 years, and the other a term of 3 years.
            (3) Vacancies.--A member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed for the 
        remainder of such term.
    (d) Eligibility.--A person who has completed two consecutive full 
terms of service on the Advisory Committee shall thereafter be 
ineligible for appointment during the 1-year period following the 
expiration of the second such term.
    (e) Meetings.--The Advisory Committee shall meet at least quarterly 
at the call of the Chair or whenever one-third of the members so 
request in writing. Each member shall be given appropriate notice of 
the call of each meeting, whenever possible not less than 15 days 
before the meeting.
    (f) Quorum.--A majority of the members of the Advisory Committee 
not having a conflict of interest in the matter being considered by the 
Advisory Committee shall constitute a quorum.
    (g) Conflict of Interest Rules.--The Advisory Committee shall 
establish rules for determining when 1 of its members has a conflict of 
interest in a matter being considered by the Advisory Committee.
    (h) Reports.--
            (1) Annual report.--The Advisory Committee shall render an 
        annual report to the Under Secretary for Science and Technology 
        for transmittal to Congress on or before January 31 of each 
        year. Such report shall describe the activities and 
        recommendations of the Advisory Committee during the previous 
        year.
            (2) Additional reports.--The Advisory Committee may render 
        to the Under Secretary for transmittal to Congress such 
        additional reports on specific policy matters as it considers 
        appropriate.
    (i) FACA Exemption.--Section 14 of the Federal Advisory Committee 
Act shall not apply to the Advisory Committee.
    (j) Termination.--The Department of Homeland Security Science and 
Technology Advisory Committee shall terminate 3 years after the 
effective date of this Act.

SEC. 312. HOMELAND SECURITY INSTITUTE.

    (a) Establishment.--The Secretary shall establish a federally 
funded research and development center to be known as the ``Homeland 
Security Institute'' (in this section referred to as the 
``Institute'').
    (b) Administration.--The Institute shall be administered as a 
separate entity by the Secretary.
    (c) Duties.--The duties of the Institute shall be determined by the 
Secretary, and may include the following:
            (1) Systems analysis, risk analysis, and simulation and 
        modeling to determine the vulnerabilities of the Nation's 
        critical infrastructures and the effectiveness of the systems 
        deployed to reduce those vulnerabilities.
            (2) Economic and policy analysis to assess the distributed 
        costs and benefits of alternative approaches to enhancing 
        security.
            (3) Evaluation of the effectiveness of measures deployed to 
        enhance the security of institutions, facilities, and 
        infrastructure that may be terrorist targets.
            (4) Identification of instances when common standards and 
        protocols could improve the interoperability and effective 
        utilization of tools developed for field operators and first 
        responders.
            (5) Assistance for Federal agencies and departments in 
        establishing testbeds to evaluate the effectiveness of 
        technologies under development and to assess the 
        appropriateness of such technologies for deployment.
            (6) Design of metrics and use of those metrics to evaluate 
        the effectiveness of homeland security programs throughout the 
        Federal Government, including all national laboratories.
            (7) Design of and support for the conduct of homeland 
        security-related exercises and simulations.
            (8) Creation of strategic technology development plans to 
        reduce vulnerabilities in the Nation's critical infrastructure 
        and key resources.
    (d) Consultation on Institute Activities.--In carrying out the 
duties described in subsection (c), the Institute shall consult widely 
with representatives from private industry, institutions of higher 
education, nonprofit institutions, other Government agencies, and 
federally funded research and development centers.
    (e) Use of Centers.--The Institute shall utilize the capabilities 
of the National Infrastructure Simulation and Analysis Center.
    (f) Annual Reports.--The Institute shall transmit to the Secretary 
and Congress an annual report on the activities of the Institute under 
this section.
    (g) Termination.--The Homeland Security Institute shall terminate 3 
years after the effective date of this Act.

SEC. 313. TECHNOLOGY CLEARINGHOUSE TO ENCOURAGE AND SUPPORT INNOVATIVE 
              SOLUTIONS TO ENHANCE HOMELAND SECURITY.

    (a) Establishment of Program.--The Secretary, acting through the 
Under Secretary for Science and Technology, shall establish and promote 
a program to encourage technological innovation in facilitating the 
mission of the Department (as described in section 101).
    (b) Elements of Program.--The program described in subsection (a) 
shall include the following components:
            (1) The establishment of a centralized Federal 
        clearinghouse for information relating to technologies that 
        would further the mission of the Department for dissemination, 
        as appropriate, to Federal, State, and local government and 
        private sector entities for additional review, purchase, or 
        use.
            (2) The issuance of announcements seeking unique and 
        innovative technologies to advance the mission of the 
        Department.
            (3) The establishment of a technical assistance team to 
        assist in screening, as appropriate, proposals submitted to the 
        Secretary (except as provided in subsection (c)(2)) to assess 
        the feasibility, scientific and technical merits, and estimated 
        cost of such proposals, as appropriate.
            (4) The provision of guidance, recommendations, and 
        technical assistance, as appropriate, to assist Federal, State, 
        and local government and private sector efforts to evaluate and 
        implement the use of technologies described in paragraph (1) or 
        (2).
            (5) The provision of information for persons seeking 
        guidance on how to pursue proposals to develop or deploy 
        technologies that would enhance homeland security, including 
        information relating to Federal funding, regulation, or 
        acquisition.
    (c) Miscellaneous Provisions.--
            (1) In general.--Nothing in this section shall be construed 
        as authorizing the Secretary or the technical assistance team 
        established under subsection (b)(3) to set standards for 
        technology to be used by the Department, any other executive 
        agency, any State or local government entity, or any private 
        sector entity.
            (2) Certain proposals.--The technical assistance team 
        established under subsection (b)(3) shall not consider or 
        evaluate proposals submitted in response to a solicitation for 
        offers for a pending procurement or for a specific agency 
        requirement.
            (3) Coordination.--In carrying out this section, the 
        Secretary shall coordinate with the Technical Support Working 
        Group (organized under the April 1982 National Security 
        Decision Directive Numbered 30).

      TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

   Subtitle A--Under Secretary for Border and Transportation Security

SEC. 401. UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    There shall be in the Department a Directorate of Border and 
Transportation Security headed by an Under Secretary for Border and 
Transportation Security.

SEC. 402. RESPONSIBILITIES.

    The Secretary, acting through the Under Secretary for Border and 
Transportation Security, shall be responsible for the following:
            (1) Preventing the entry of terrorists and the instruments 
        of terrorism into the United States.
            (2) Securing the borders, territorial waters, ports, 
        terminals, waterways, and air, land, and sea transportation 
        systems of the United States, including managing and 
        coordinating those functions transferred to the Department at 
        ports of entry.
            (3) Carrying out the immigration enforcement functions 
        vested by statute in, or performed by, the Commissioner of 
        Immigration and Naturalization (or any officer, employee, or 
        component of the Immigration and Naturalization Service) 
        immediately before the date on which the transfer of functions 
        specified under section 441 takes effect.
            (4) Establishing and administering rules, in accordance 
        with section 428, governing the granting of visas or other 
        forms of permission, including parole, to enter the United 
        States to individuals who are not a citizen or an alien 
        lawfully admitted for permanent residence in the United States.
            (5) Establishing national immigration enforcement policies 
        and priorities.
            (6) Except as provided in subtitle C, administering the 
        customs laws of the United States.
            (7) Conducting the inspection and related administrative 
        functions of the Department of Agriculture transferred to the 
        Secretary of Homeland Security under section 421.
            (8) In carrying out the foregoing responsibilities, 
        ensuring the speedy, orderly, and efficient flow of lawful 
        traffic and commerce.

SEC. 403. FUNCTIONS TRANSFERRED.

    In accordance with title XV (relating to transition provisions), 
there shall be transferred to the Secretary the functions, personnel, 
assets, and liabilities of--
            (1) the United States Customs Service of the Department of 
        the Treasury, including the functions of the Secretary of the 
        Treasury relating thereto;
            (2) the Transportation Security Administration of the 
        Department of Transportation, including the functions of the 
        Secretary of Transportation, and of the Under Secretary of 
        Transportation for Security, relating thereto;
            (3) the Federal Protective Service of the General Services 
        Administration, including the functions of the Administrator of 
        General Services relating thereto;
            (4) the Federal Law Enforcement Training Center of the 
        Department of the Treasury; and
            (5) the Office for Domestic Preparedness of the Office of 
        Justice Programs, including the functions of the Attorney 
        General relating thereto.

               Subtitle B--United States Customs Service

SEC. 411. ESTABLISHMENT; COMMISSIONER OF CUSTOMS.

    (a) Establishment.--There is established in the Department the 
United States Customs Service, under the authority of the Under 
Secretary for Border and Transportation Security, which shall be vested 
with those functions including, but not limited to those set forth in 
section 415(7), and the personnel, assets, and liabilities attributable 
to those functions.
    (b) Commissioner of Customs.--
            (1) In General.--There shall be at the head of the Customs 
        Service a Commissioner of Customs, who shall be appointed by 
        the President, by and with the advice and consent of the 
        Senate.
            (2) Compensation.--Section 5314 of title 5, United States 
        Code, is amended by striking
            ``Commissioner of Customs, Department of the Treasury''
and inserting
            ``Commissioner of Customs, Department of Homeland 
        Security.''.
            (3) Continuation in office.--The individual serving as the 
        Commissioner of Customs on the day before the effective date of 
        this Act may serve as the Commissioner of Customs on and after 
        such effective date until a Commissioner of Customs is 
        appointed under paragraph (1).

SEC. 412. RETENTION OF CUSTOMS REVENUE FUNCTIONS BY SECRETARY OF THE 
              TREASURY.

    (a) Retention of Customs Revenue Functions by Secretary of the 
Treasury.--
            (1) Retention of authority.--Notwithstanding section 
        403(a)(1), authority related to Customs revenue functions that 
        was vested in the Secretary of the Treasury by law before the 
        effective date of this Act under those provisions of law set 
        forth in paragraph (2) shall not be transferred to the 
        Secretary by reason of this Act, and on and after the effective 
        date of this Act, the Secretary of the Treasury may delegate 
        any such authority to the Secretary at the discretion of the 
        Secretary of the Treasury. The Secretary of the Treasury shall 
        consult with the Secretary regarding the exercise of any such 
        authority not delegated to the Secretary.
            (2) Statutes.--The provisions of law referred to in 
        paragraph (1) are the following: the Tariff Act of 1930; 
        section 249 of the Revised Statutes of the United States (19 
        U.S.C. 3); section 2 of the Act of March 4, 1923 (19 U.S.C. 6); 
        section 13031 of the Consolidated Omnibus Budget Reconciliation 
        Act of 1985 (19 U.S.C. 58c); section 251 of the Revised 
        Statutes of the United States (19 U.S.C. 66); section 1 of the 
        Act of June 26, 1930 (19 U.S.C. 68); the Foreign Trade Zones 
        Act (19 U.S.C. 81a et seq.); section 1 of the Act of March 2, 
        1911 (19 U.S.C. 198); the Trade Act of 1974; the Trade 
        Agreements Act of 1979; the North American Free Trade Area 
        Implementation Act; the Uruguay Round Agreements Act; the 
        Caribbean Basin Economic Recovery Act; the Andean Trade 
        Preference Act; the African Growth and Opportunity Act; and any 
        other provision of law vesting customs revenue functions in the 
        Secretary of the Treasury.
    (b) Maintenance of Customs Revenue Functions.--
            (1) Maintenance of functions.--Notwithstanding any other 
        provision of this Act, the Secretary may not consolidate, 
        discontinue, or diminish those functions described in paragraph 
        (2) performed by the United States Customs Service (as 
        established under section 411) on or after the effective date 
        of this Act, reduce the staffing level, or reduce the resources 
        attributable to such functions, and the Secretary shall ensure 
        that an appropriate management structure is implemented to 
        carry out such functions.
            (2) Functions.--The functions referred to in paragraph (1) 
        are those functions performed by the following personnel, and 
        associated support staff, of the United States Customs Service 
        on the day before the effective date of this Act: Import 
        Specialists, Entry Specialists, Drawback Specialists, National 
        Import Specialist, Fines and Penalties Specialists, attorneys 
        of the Office of Regulations and Rulings, Customs Auditors, 
        International Trade Specialists, Financial Systems Specialists.
    (c) New Personnel.--The Secretary of the Treasury is authorized to 
appoint up to 20 new personnel to work with personnel of the Department 
in performing customs revenue functions.

SEC. 413. PRESERVATION OF CUSTOMS FUNDS.

    Notwithstanding any other provision of this Act, no funds available 
to the United States Customs Service or collected under paragraphs (1) 
through (8) of section 13031(a) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 may be transferred for use by any other 
agency or office in the Department.

SEC. 414. SEPARATE BUDGET REQUEST FOR CUSTOMS.

    The President shall include in each budget transmitted to Congress 
under section 1105 of title 31, United States Code, a separate budget 
request for the United States Customs Service.

SEC. 415. DEFINITION.

    In this subtitle, the term ``customs revenue function'' means the 
following:
            (1) Assessing and collecting customs duties (including 
        antidumping and countervailing duties and duties imposed under 
        safeguard provisions), excise taxes, fees, and penalties due on 
        imported merchandise, including classifying and valuing 
        merchandise for purposes of such assessment.
            (2) Processing and denial of entry of persons, baggage, 
        cargo, and mail, with respect to the assessment and collection 
        of import duties.
            (3) Detecting and apprehending persons engaged in 
        fraudulent practices designed to circumvent the customs laws of 
        the United States.
            (4) Enforcing section 337 of the Tariff Act of 1930 and 
        provisions relating to import quotas and the marking of 
        imported merchandise, and providing Customs Recordations for 
        copyrights, patents, and trademarks.
            (5) Collecting accurate import data for compilation of 
        international trade statistics.
            (6) Enforcing reciprocal trade agreements.
            (7) Functions performed by the following personnel, and 
        associated support staff, of the United States Customs Service 
        on the day before the effective date of this Act: Import 
        Specialists, Entry Specialists, Drawback Specialists, National 
        Import Specialist, Fines and Penalties Specialists, attorneys 
        of the Office of Regulations and Rulings, Customs Auditors, 
        International Trade Specialists, Financial Systems Specialists.
            (8) Functions performed by the following offices, with 
        respect to any function described in any of paragraphs (1) 
        through (7), and associated support staff, of the United States 
        Customs Service on the day before the effective date of this 
        Act: the Office of Information and Technology, the Office of 
        Laboratory Services, the Office of the Chief Counsel, the 
        Office of Congressional Affairs, the Office of International 
        Affairs, and the Office of Training and Development.

SEC. 416. GAO REPORT TO CONGRESS.

    Not later than 3 months after the effective date of this Act, the 
Comptroller General of the United States shall submit to Congress a 
report that sets forth all trade functions performed by the executive 
branch, specifying each agency that performs each such function.

SEC. 417. ALLOCATION OF RESOURCES BY THE SECRETARY.

    (a) In General.--The Secretary shall ensure that adequate staffing 
is provided to assure that levels of customs revenue services provided 
on the day before the effective date of this Act shall continue to be 
provided.
    (b) Notification of Congress.--The Secretary shall notify the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate at least 90 days prior to taking any 
action which would--
            (1) result in any significant reduction in customs revenue 
        services, including hours of operation, provided at any office 
        within the Department or any port of entry;
            (2) eliminate or relocate any office of the Department 
        which provides customs revenue services; or
            (3) eliminate any port of entry.
    (c) Definition.--In this section, the term ``customs revenue 
services'' means those customs revenue functions described in 
paragraphs (1) through (6) and paragraph (8) of section 415.

SEC. 418. REPORTS TO CONGRESS.

    (a) Continuing Reports.--The United States Customs Service shall, 
on and after the effective date of this Act, continue to submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate any report required, on the day 
before such the effective date of this Act, to be so submitted under 
any provision of law.
    (b) Report on Conforming Amendments.--Not later than 60 days after 
the date of enactment of this Act, the Secretary of the Treasury shall 
submit a report to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives of proposed 
conforming amendments to the statutes set forth under section 412(a)(2) 
in order to determine the appropriate allocation of legal authorities 
described under this subsection. The Secretary of the Treasury shall 
also identify those authorities vested in the Secretary of the Treasury 
that are exercised by the Commissioner of Customs on or before the 
effective date of this section.

SEC. 419. CUSTOMS USER FEES.

    (a) In General.--Section 13031(f) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) is amended--
            (1) in paragraph (1), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) amounts deposited into the Customs Commercial 
                and Homeland Security Automation Account under 
                paragraph (5).'';
            (2) in paragraph (4), by striking ``(other than the excess 
        fees determined by the Secretary under paragraph (5))''; and
            (3) by striking paragraph (5) and inserting the following:
    ``(5)(A) There is created within the general fund of the Treasury a 
separate account that shall be known as the `Customs Commercial and 
Homeland Security Automation Account'. In each of fiscal years 2003, 
2004, and 2005 there shall be deposited into the Account from fees 
collected under subsection (a)(9)(A), $350,000,000.
    ``(B) There is authorized to be appropriated from the Account in 
fiscal years 2003 through 2005 such amounts as are available in that 
Account for the development, establishment, and implementation of the 
Automated Commercial Environment computer system for the processing of 
merchandise that is entered or released and for other purposes related 
to the functions of the Department of Homeland Security. Amounts 
appropriated pursuant to this subparagraph are authorized to remain 
available until expended.
    ``(C) In adjusting the fee imposed by subsection (a)(9)(A) for 
fiscal year 2006, the Secretary of the Treasury shall reduce the amount 
estimated to be collected in fiscal year 2006 by the amount by which 
total fees deposited to the Account during fiscal years 2003, 2004, and 
2005 exceed total appropriations from that Account.''.
    (b) Conforming Amendment.--Section 311(b) of the Customs Border 
Security Act of 2002 (Public Law 107-210) is amended by striking 
paragraph (2).

                  Subtitle C--Miscellaneous Provisions

SEC. 421. TRANSFER OF CERTAIN AGRICULTURAL INSPECTION FUNCTIONS OF THE 
              DEPARTMENT OF AGRICULTURE.

    (a) Transfer of Agricultural Import and Entry Inspection 
Functions.--There shall be transferred to the Secretary the functions 
of the Secretary of Agriculture relating to agricultural import and 
entry inspection activities under the laws specified in subsection (b).
    (b) Covered Animal and Plant Protection Laws.--The laws referred to 
in subsection (a) are the following:
            (1) The Act commonly known as the Virus-Serum-Toxin Act 
        (the eighth paragraph under the heading ``Bureau of Animal 
        Industry'' in the Act of March 4, 1913; 21 U.S.C. 151 et seq.).
            (2) Section 1 of the Act of August 31, 1922 (commonly known 
        as the Honeybee Act; 7 U.S.C. 281).
            (3) Title III of the Federal Seed Act (7 U.S.C. 1581 et 
        seq.).
            (4) The Plant Protection Act (7 U.S.C. 7701 et seq.).
            (5) The Animal Health Protection Act (subtitle E of title X 
        of Public Law 107-171; 7 U.S.C. 8301 et seq.).
            (6) The Lacey Act Amendments of 1981 (16 U.S.C. 3371 et 
        seq.).
            (7) Section 11 of the Endangered Species Act of 1973 (16 
        U.S.C. 1540).
    (c) Exclusion of Quarantine Activities.--For purposes of this 
section, the term ``functions'' does not include any quarantine 
activities carried out under the laws specified in subsection (b).
    (d) Effect of Transfer.--
            (1) Compliance with department of agriculture 
        regulations.--The authority transferred pursuant to subsection 
        (a) shall be exercised by the Secretary in accordance with the 
        regulations, policies, and procedures issued by the Secretary 
        of Agriculture regarding the administration of the laws 
        specified in subsection (b).
            (2) Rulemaking coordination.--The Secretary of Agriculture 
        shall coordinate with the Secretary whenever the Secretary of 
        Agriculture prescribes regulations, policies, or procedures for 
        administering the functions transferred under subsection (a) 
        under a law specified in subsection (b).
            (3) Effective administration.--The Secretary, in 
        consultation with the Secretary of Agriculture, may issue such 
        directives and guidelines as are necessary to ensure the 
        effective use of personnel of the Department of Homeland 
        Security to carry out the functions transferred pursuant to 
        subsection (a).
    (e) Transfer Agreement.--
            (1) Agreement required; revision.--Before the end of the 
        transition period, as defined in section 1501, the Secretary of 
        Agriculture and the Secretary shall enter into an agreement to 
        effectuate the transfer of functions required by subsection 
        (a). The Secretary of Agriculture and the Secretary may jointly 
        revise the agreement as necessary thereafter.
            (2) Required Terms.--The agreement required by this 
        subsection shall specifically address the following:
                    (A) The supervision by the Secretary of Agriculture 
                of the training of employees of the Secretary to carry 
                out the functions transferred pursuant to subsection 
                (a).
                    (B) The transfer of funds to the Secretary under 
                subsection (f).
            (3) Cooperation and reciprocity.--The Secretary of 
        Agriculture and the Secretary may include as part of the 
        agreement the following:
                    (A) Authority for the Secretary to perform 
                functions delegated to the Animal and Plant Health 
                Inspection Service of the Department of Agriculture 
                regarding the protection of domestic livestock and 
                plants, but not transferred to the Secretary pursuant 
                to subsection (a).
                    (B) Authority for the Secretary of Agriculture to 
                use employees of the Department of Homeland Security to 
                carry out authorities delegated to the Animal and Plant 
                Health Inspection Service regarding the protection of 
                domestic livestock and plants.
    (f) Periodic Transfer of Funds to Department of Homeland 
Security.--
            (1) Transfer of funds.--Out of funds collected by fees 
        authorized under sections 2508 and 2509 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 
        136, 136a), the Secretary of Agriculture shall transfer, from 
        time to time in accordance with the agreement under subsection 
        (e), to the Secretary funds for activities carried out by the 
        Secretary for which such fees were collected.
            (2) Limitation.--The proportion of fees collected pursuant 
        to such sections that are transferred to the Secretary under 
        this subsection may not exceed the proportion of the costs 
        incurred by the Secretary to all costs incurred to carry out 
        activities funded by such fees.
    (g) Transfer of Department of Agriculture Employees.--Not later 
than the completion of the transition period defined under section 
1501, the Secretary of Agriculture shall transfer to the Secretary not 
more than 3,200 full-time equivalent positions of the Department of 
Agriculture.
    (h) Protection of Inspection Animals.--Title V of the Agricultural 
Risk Protection Act of 2000 (7 U.S.C. 2279e, 2279f) is amended--
            (1) in section 501(a)--
                    (A) by inserting ``or the Department of Homeland 
                Security'' after ``Department of Agriculture''; and
                    (B) by inserting ``or the Secretary of Homeland 
                Security'' after ``Secretary of Agriculture'';
            (2) by striking ``Secretary'' each place it appears (other 
        than in sections 501(a) and 501(e)) and inserting ``Secretary 
        concerned''; and
            (3) by adding at the end of section 501 the following new 
        subsection:
    ``(e) Secretary Concerned Defined.--In this title, the term 
`Secretary concerned' means--
            ``(1) the Secretary of Agriculture, with respect to an 
        animal used for purposes of official inspections by the 
        Department of Agriculture; and
            ``(2) the Secretary of Homeland Security, with respect to 
        an animal used for purposes of official inspections by the 
        Department of Homeland Security.''.

SEC. 422. FUNCTIONS OF ADMINISTRATOR OF GENERAL SERVICES.

    (a) Operation, Maintenance, and Protection of Federal Buildings and 
Grounds.--Nothing in this Act may be construed to affect the functions 
or authorities of the Administrator of General Services with respect to 
the operation, maintenance, and protection of buildings and grounds 
owned or occupied by the Federal Government and under the jurisdiction, 
custody, or control of the Administrator. Except for the law 
enforcement and related security functions transferred under section 
403(3), the Administrator shall retain all powers, functions, and 
authorities vested in the Administrator under chapter 10 of title 40, 
United States Code, and other provisions of law that are necessary for 
the operation, maintenance, and protection of such buildings and 
grounds.
    (b) Collection of Rents and Fees; Federal Buildings Fund.--
            (1) Statutory construction.--Nothing in this Act may be 
        construed--
                    (A) to direct the transfer of, or affect, the 
                authority of the Administrator of General Services to 
                collect rents and fees, including fees collected for 
                protective services; or
                    (B) to authorize the Secretary or any other 
                official in the Department to obligate amounts in the 
                Federal Buildings Fund established by section 490(f) of 
                title 40, United States Code.
            (2) Use of transferred amounts.--Any amounts transferred by 
        the Administrator of General Services to the Secretary out of 
        rents and fees collected by the Administrator shall be used by 
        the Secretary solely for the protection of buildings or grounds 
        owned or occupied by the Federal Government.

SEC. 423. FUNCTIONS OF TRANSPORTATION SECURITY ADMINISTRATION.

    (a) Consultation With Federal Aviation Administration.--The 
Secretary and other officials in the Department shall consult with the 
Administrator of the Federal Aviation Administration before taking any 
action that might affect aviation safety, air carrier operations, 
aircraft airworthiness, or the use of airspace. The Secretary shall 
establish a liaison office within the Department for the purpose of 
consulting with the Administrator of the Federal Aviation 
Administration.
    (b) Report to Congress.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Transportation shall transmit 
to Congress a report containing a plan for complying with the 
requirements of section 44901(d) of title 49, United States Code, as 
amended by section 425 of this Act.
    (c) Limitations on Statutory Construction.--
            (1) Grant of authority.--Nothing in this Act may be 
        construed to vest in the Secretary or any other official in the 
        Department any authority over transportation security that is 
        not vested in the Under Secretary of Transportation for 
        Security, or in the Secretary of Transportation under chapter 
        449 of title 49, United States Code, on the day before the date 
        of enactment of this Act.
            (2) Obligation of aip funds.--Nothing in this Act may be 
        construed to authorize the Secretary or any other official in 
        the Department to obligate amounts made available under section 
        48103 of title 49, United States Code.

SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A 
              DISTINCT ENTITY.

    (a) In General.--Notwithstanding any other provision of this Act, 
and subject to subsection (b), the Transportation Security 
Administration shall be maintained as a distinct entity within the 
Department under the Under Secretary for Border Transportation and 
Security.
    (b) Sunset.--Subsection (a) shall cease to apply 2 years after the 
date of enactment of this Act.

SEC. 425. EXPLOSIVE DETECTION SYSTEMS.

            Section 44901(d) of title 49, United States Code, is 
        amended by adding at the end the following:
            ``(2) Deadline.--
                    ``(A) In general.--If, in his discretion or at the 
                request of an airport, the Under Secretary of 
                Transportation for Security determines that the 
                Transportation Security Administration is not able to 
                deploy explosive detection systems required to be 
                deployed under paragraph (1) at all airports where 
                explosive detection systems are required by December 
                31, 2002, then with respect to each airport for which 
                the Under Secretary makes that determination--
                            ``(i) the Under Secretary shall submit to 
                        the Senate Committee on Commerce, Science, and 
                        Transportation and the House of Representatives 
                        Committee on Transportation and Infrastructure 
                        a detailed plan (which may be submitted in 
                        classified form) for the deployment of the 
                        number of explosive detection systems at that 
                        airport necessary to meet the requirements of 
                        paragraph (1) as soon as practicable at that 
                        airport but in no event later than December 31, 
                        2003; and
                            ``(ii) the Under Secretary shall take all 
                        necessary action to ensure that alternative 
                        means of screening all checked baggage is 
                        implemented until the requirements of paragraph 
                        (1) have been met.
                    ``(B) Criteria for determination.--In making a 
                determination under subparagraph (A), the Under 
                Secretary shall take into account--
                            ``(i) the nature and extent of the required 
                        modifications to the airport's terminal 
                        buildings, and the technical, engineering, 
                        design and construction issues;
                            ``(ii) the need to ensure that such 
                        installations and modifications are effective; 
                        and
                            ``(iii) the feasibility and cost-
                        effectiveness of deploying explosive detection 
                        systems in the baggage sorting area or other 
                        non-public area rather than the lobby of an 
                        airport terminal building.
                    ``(C) Response.--The Under Secretary shall respond 
                to the request of an airport under subparagraph (A) 
                within 14 days of receiving the request. A denial of 
                request shall create no right of appeal or judicial 
                review.
                    ``(D) Airport effort required.--Each airport with 
                respect to which the Under Secretary makes a 
                determination under subparagraph (A) shall--
                            ``(i) cooperate fully with the 
                        Transportation Security Administration with 
                        respect to screening checked baggage and 
                        changes to accommodate explosive detection 
                        systems; and
                            ``(ii) make security projects a priority 
                        for the obligation or expenditure of funds made 
                        available under chapter 417 or 471 until 
                        explosive detection systems required to be 
                        deployed under paragraph (1) have been deployed 
                        at that airport.
            ``(3) Reports.--Until the Transportation Security 
        Administration has met the requirements of paragraph (1), the 
        Under Secretary shall submit a classified report every 30 days 
        after the date of enactment of this Act to the Senate Committee 
        on Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        describing the progress made toward meeting such requirements 
        at each airport.''.

SEC. 426. TRANSPORTATION SECURITY.

    (a) Transportation Security Oversight Board.--
            (1) Establishment.--Section 115(a) of title 49, United 
        States Code, is amended by striking ``Department of 
        Transportation'' and inserting ``Department of Homeland 
        Security''.
            (2) Membership.--Section 115(b)(1) of title 49, United 
        States Code, is amended--
                    (A) by striking subparagraph (G);
                    (B) by redesignating subparagraphs (A) through (F) 
                as subparagraphs (B) through (G), respectively; and
                    (C) by inserting before subparagraph (B) (as so 
                redesignated) the following:
                    ``(A) The Secretary of Homeland Security, or the 
                Secretary's designee.''.
            (3) Chairperson.--Section 115(b)(2) of title 49, United 
        States Code, is amended by striking ``Secretary of 
        Transportation'' and inserting ``Secretary of Homeland 
        Security''.
    (b) Approval of AIP Grant Applications for Security Activities.--
Section 47106 of title 49, United States Code, is amended by adding at 
the end the following:
    ``(g) Consultation With Secretary of Homeland Security.--The 
Secretary shall consult with the Secretary of Homeland Security before 
approving an application under this subchapter for an airport 
development project grant for activities described in section 
47102(3)(B)(ii) only as they relate to security equipment or section 
47102(3)(B)(x) only as they relate to installation of bulk explosive 
detection system.''.

SEC. 427. COORDINATION OF INFORMATION AND INFORMATION TECHNOLOGY.

    (a) Definition of Affected Agency.--In this section, the term 
``affected agency'' means--
            (1) the Department;
            (2) the Department of Agriculture;
            (3) the Department of Health and Human Services; and
            (4) any other department or agency determined to be 
        appropriate by the Secretary.
    (b) Coordination.--The Secretary, in coordination with the 
Secretary of Agriculture, the Secretary of Health and Human Services, 
and the head of each other department or agency determined to be 
appropriate by the Secretary, shall ensure that appropriate information 
(as determined by the Secretary) concerning inspections of articles 
that are imported or entered into the United States, and are inspected 
or regulated by 1 or more affected agencies, is timely and efficiently 
exchanged between the affected agencies.
    (c) Report and Plan.--Not later than 18 months after the date of 
enactment of this Act, the Secretary, in consultation with the 
Secretary of Agriculture, the Secretary of Health and Human Services, 
and the head of each other department or agency determined to be 
appropriate by the Secretary, shall submit to Congress--
            (1) a report on the progress made in implementing this 
        section; and
            (2) a plan to complete implementation of this section.

SEC. 428. VISA ISSUANCE.

    (a) Definition.--In this subsection, the term ``consular office'' 
has the meaning given that term under section 101(a)(9) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(9)).
    (b) In General.--Notwithstanding section 104(a) of the Immigration 
and Nationality Act (8 U.S.C. 1104(a)) or any other provision of law, 
and except as provided in subsection (c) of this section, the 
Secretary--
            (1) shall be vested exclusively with all authorities to 
        issue regulations with respect to, administer, and enforce the 
        provisions of such Act, and of all other immigration and 
        nationality laws, relating to the functions of consular 
        officers of the United States in connection with the granting 
        or refusal of visas, and shall have the authority to refuse 
        visas in accordance with law and to develop programs of 
        homeland security training for consular officers (in addition 
        to consular training provided by the Secretary of State), which 
        authorities shall be exercised through the Secretary of State, 
        except that the Secretary shall not have authority to alter or 
        reverse the decision of a consular officer to refuse a visa to 
        an alien; and
            (2) shall have authority to confer or impose upon any 
        officer or employee of the United States, with the consent of 
        the head of the executive agency under whose jurisdiction such 
        officer or employee is serving, any of the functions specified 
        in paragraph (1).
    (c) Authority of the Secretary of State.--
            (1) In general.--Notwithstanding subsection (b), the 
        Secretary of State may direct a consular officer to refuse a 
        visa to an alien if the Secretary of State deems such refusal 
        necessary or advisable in the foreign policy or security 
        interests of the United States.
            (2) Construction regarding authority.--Nothing in this 
        section, consistent with the Secretary of Homeland Security's 
        authority to refuse visas in accordance with law, shall be 
        construed as affecting the authorities of the Secretary of 
        State under the following provisions of law:
                    (A) Section 101(a)(15)(A) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(15)(A)).
                    (B) Section 204(d)(2) of the Immigration and 
                Nationality Act (8 U.S.C. 1154) (as it will take effect 
                upon the entry into force of the Convention on 
                Protection of Children and Cooperation in Respect to 
                Inter-Country adoption).
                    (C) Section 212(a)(3)(B)(i)(IV)(bb) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1182(a)(3)(B)(i)(IV)(bb)).
                    (D) Section 212(a)(3)(B)(i)(VI) of the Immigration 
                and Nationality Act (8 U.S.C. 1182(a)(3)(B)(i)(VI)).
                    (E) Section 212(a)(3)(B)(vi)(II) of the Immigration 
                and Nationality Act (8 U.S.C. 1182(a)(3)(B)(vi)(II)).
                    (F) Section 212(a)(3(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(3)(C)).
                    (G) Section 212(a)(10)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(10)(C)).
                    (H) Section 212(f) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(f)).
                    (I) Section 219(a) of the Immigration and 
                Nationality Act (8 U.S.C. 1189(a)).
                    (J) Section 237(a)(4)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1227(a)(4)(C)).
                    (K) Section 401 of the Cuban Liberty and Democratic 
                Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6034; 
                Public Law 104-114).
                    (L) Section 613 of the Departments of Commerce, 
                Justice, and State, the Judiciary and Related Agencies 
                Appropriations Act, 1999 (as contained in section 
                101(b) of division A of Public Law 105-277) (Omnibus 
                Consolidated and Emergency Supplemental Appropriations 
                Act, 1999); 112 Stat. 2681; H.R. 4328 (originally H.R. 
                4276) as amended by section 617 of Public Law 106-553.
                    (M) Section 103(f) of the Chemical Weapon 
                Convention Implementation Act of 1998 (112 Stat. 2681-
                865).
                    (N) Section 801 of H.R. 3427, the Admiral James W. 
                Nance and Meg Donovan Foreign Relations Authorization 
                Act, Fiscal Years 2000 and 2001, as enacted by 
                reference in Public Law 106-113.
                    (O) Section 568 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                2002 (Public Law 107-115).
                    (P) Section 51 of the State Department Basic 
                Authorities Act of 1956 (22 U.S.C. 2723).
    (d) Consular Officers and Chiefs of Missions.--
            (1) In general.--Nothing in this section may be construed 
        to alter or affect--
                    (A) the employment status of consular officers as 
                employees of the Department of State; or
                    (B) the authority of a chief of mission under 
                section 207 of the Foreign Service Act of 1980 (22 
                U.S.C. 3927).
            (2) Construction regarding delegation of authority.--
        Nothing in this section shall be construed to affect any 
        delegation of authority to the Secretary of State by the 
        President pursuant to any proclamation issued under section 
        212(f) of the Immigration and Nationality Act (8 U.S.C. 
        1182(f)), consistent with the Secretary of Homeland Security's 
        authority to refuse visas in accordance with law.
    (e) Assignment of Homeland Security Employees to Diplomatic and 
Consular Posts.--
            (1) In general.--The Secretary is authorized to assign 
        employees of the Department to each diplomatic and consular 
        post at which visas are issued, unless the Secretary determines 
        that such an assignment at a particular post would not promote 
        homeland security.
            (2) Functions.--Employees assigned under paragraph (1) 
        shall perform the following functions:
                    (A) Provide expert advice and training to consular 
                officers regarding specific security threats relating 
                to the adjudication of individual visa applications or 
                classes of applications.
                    (B) Review any such applications, either on the 
                initiative of the employee of the Department or upon 
                request by a consular officer or other person charged 
                with adjudicating such applications.
                    (C) Conduct investigations with respect to consular 
                matters under the jurisdiction of the Secretary.
            (3) Evaluation of consular officers.--The Secretary of 
        State shall evaluate, in consultation with the Secretary, as 
        deemed appropriate by the Secretary, the performance of 
        consular officers with respect to the processing and 
        adjudication of applications for visas in accordance with 
        performance standards developed by the Secretary for these 
        procedures.
            (4) Report.--The Secretary shall, on an annual basis, 
        submit a report to Congress that describes the basis for each 
        determination under paragraph (1) that the assignment of an 
        employee of the Department at a particular diplomatic post 
        would not promote homeland security.
            (5) Permanent assignment; participation in terrorist 
        lookout committee.--When appropriate, employees of the 
        Department assigned to perform functions described in paragraph 
        (2) may be assigned permanently to overseas diplomatic or 
        consular posts with country-specific or regional 
        responsibility. If the Secretary so directs, any such employee, 
        when present at an overseas post, shall participate in the 
        terrorist lookout committee established under section 304 of 
        the Enhanced Border Security and Visa Entry Reform Act of 2002 
        (8 U.S.C. 1733).
            (6) Training and hiring.--
                    (A) In general.--The Secretary shall ensure, to the 
                extent possible, that any employees of the Department 
                assigned to perform functions under paragraph (2) and, 
                as appropriate, consular officers, shall be provided 
                the necessary training to enable them to carry out such 
                functions, including training in foreign languages, 
                interview techniques, and fraud detection techniques, 
                in conditions in the particular country where each 
                employee is assigned, and in other appropriate areas of 
                study.
                    (B) Use of center.--The Secretary is authorized to 
                use the National Foreign Affairs Training Center, on a 
                reimbursable basis, to obtain the training described in 
                subparagraph (A).
            (7) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary and the Secretary of State 
        shall submit to Congress--
                    (A) a report on the implementation of this 
                subsection; and
                    (B) any legislative proposals necessary to further 
                the objectives of this subsection.
            (8) Effective date.--This subsection shall take effect on 
        the earlier of--
                    (A) the date on which the President publishes 
                notice in the Federal Register that the President has 
                submitted a report to Congress setting forth a 
                memorandum of understanding between the Secretary and 
                the Secretary of State governing the implementation of 
                this section; or
                    (B) the date occurring 1 year after the date of 
                enactment of this Act.
    (f) No Creation of Private Right of Action.--Nothing in this 
section shall be construed to create or authorize a private right of 
action to challenge a decision of a consular officer or other United 
States official or employee to grant or deny a visa.
    (g) Study Regarding Use of Foreign Nationals.--
            (1) In general.--The Secretary of Homeland Security shall 
        conduct a study of the role of foreign nationals in the 
        granting or refusal of visas and other documents authorizing 
        entry of aliens into the United States. The study shall address 
        the following:
                    (A) The proper role, if any, of foreign nationals 
                in the process of rendering decisions on such grants 
                and refusals.
                    (B) Any security concerns involving the employment 
                of foreign nationals.
                    (C) Whether there are cost-effective alternatives 
                to the use of foreign nationals.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Secretary shall submit a report 
        containing the findings of the study conducted under paragraph 
        (1) to the Committee on the Judiciary, the Committee on 
        International Relations, and the Committee on Government Reform 
        of the House of Representatives, and the Committee on the 
        Judiciary, the Committee on Foreign Relations, and the 
        Committee on Government Affairs of the Senate.
    (h) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Director of the Office of Science and 
Technology Policy shall submit to Congress a report on how the 
provisions of this section will affect procedures for the issuance of 
student visas.
    (i) Visa Issuance Program for Saudi Arabia.--Notwithstanding any 
other provision of law, after the date of the enactment of this Act all 
third party screening programs in Saudi Arabia shall be terminated. On-
site personnel of the Department of Homeland Security shall review all 
visa applications prior to adjudication.

SEC. 429. INFORMATION ON VISA DENIALS REQUIRED TO BE ENTERED INTO 
              ELECTRONIC DATA SYSTEM.

    (a) In General.--Whenever a consular officer of the United States 
denies a visa to an applicant, the consular officer shall enter the 
fact and the basis of the denial and the name of the applicant into the 
interoperable electronic data system implemented under section 202(a) 
of the Enhanced Border Security and Visa Entry Reform Act of 2002 (8 
U.S.C. 1722(a)).
    (b) Prohibition.--In the case of any alien with respect to whom a 
visa has been denied under subsection (a)--
            (1) no subsequent visa may be issued to the alien unless 
        the consular officer considering the alien's visa application 
        has reviewed the information concerning the alien placed in the 
        interoperable electronic data system, has indicated on the 
        alien's application that the information has been reviewed, and 
        has stated for the record why the visa is being issued or a 
        waiver of visa ineligibility recommended in spite of that 
        information; and
            (2) the alien may not be admitted to the United States 
        without a visa issued in accordance with the procedures 
        described in paragraph (1).

SEC. 430. OFFICE FOR DOMESTIC PREPAREDNESS.

    (a) In General.--The Office for Domestic Preparedness shall be 
within the Directorate of Border and Transportation Security.
    (b) Director.--There shall be a Director of the Office for Domestic 
Preparedness, who shall be appointed by the President, by and with the 
advice and consent of the Senate. The Director of the Office for 
Domestic Preparedness shall report directly to the Under Secretary for 
Border and Transportation Security.
    (c) Responsibilities.--The Office for Domestic Preparedness shall 
have the primary responsibility within the executive branch of 
Government for the preparedness of the United States for acts of 
terrorism, including--
            (1) coordinating preparedness efforts at the Federal level, 
        and working with all State, local, tribal, parish, and private 
        sector emergency response providers on all matters pertaining 
        to combating terrorism, including training, exercises, and 
        equipment support;
            (2) coordinating or, as appropriate, consolidating 
        communications and systems of communications relating to 
        homeland security at all levels of government;
            (3) directing and supervising terrorism preparedness grant 
        programs of the Federal Government (other than those programs 
        administered by the Department of Health and Human Services) 
        for all emergency response providers;
            (4) incorporating the Strategy priorities into planning 
        guidance on an agency level for the preparedness efforts of the 
        Office for Domestic Preparedness;
            (5) providing agency-specific training for agents and 
        analysts within the Department, other agencies, and State and 
        local agencies and international entities;
            (6) as the lead executive branch agency for preparedness of 
        the United States for acts of terrorism, cooperating closely 
        with the Federal Emergency Management Agency, which shall have 
        the primary responsibility within the executive branch to 
        prepare for and mitigate the effects of nonterrorist-related 
        disasters in the United States;
            (7) assisting and supporting the Secretary, in coordination 
        with other Directorates and entities outside the Department, in 
        conducting appropriate risk analysis and risk management 
        activities of State, local, and tribal governments consistent 
        with the mission and functions of the Directorate; and
            (8) those elements of the Office of National Preparedness 
        of the Federal Emergency Management Agency which relate to 
        terrorism, which shall be consolidated within the Department in 
        the Office for Domestic Preparedness established under this 
        section.
    (d) Fiscal Years 2003 and 2004.--During fiscal year 2003 and fiscal 
year 2004, the Director of the Office for Domestic Preparedness 
established under this section shall manage and carry out those 
functions of the Office for Domestic Preparedness of the Department of 
Justice (transferred under this section) before September 11, 2001, 
under the same terms, conditions, policies, and authorities, and with 
the required level of personnel, assets, and budget before September 
11, 2001.

             Subtitle D--Immigration Enforcement Functions

SEC. 441. TRANSFER OF FUNCTIONS TO UNDER SECRETARY FOR BORDER AND 
              TRANSPORTATION SECURITY.

    In accordance with title XV (relating to transition provisions), 
there shall be transferred from the Commissioner of Immigration and 
Naturalization to the Under Secretary for Border and Transportation 
Security all functions performed under the following programs, and all 
personnel, assets, and liabilities pertaining to such programs, 
immediately before such transfer occurs:
            (1) The Border Patrol program.
            (2) The detention and removal program.
            (3) The intelligence program.
            (4) The investigations program.
            (5) The inspections program.

SEC. 442. ESTABLISHMENT OF BUREAU OF BORDER SECURITY.

    (a) Establishment of Bureau.--
            (1) In general.--There shall be in the Department of 
        Homeland Security a bureau to be known as the ``Bureau of 
        Border Security''.
            (2) Assistant secretary.--The head of the Bureau of Border 
        Security shall be the Assistant Secretary of the Bureau of 
        Border Security, who--
                    (A) shall report directly to the Under Secretary 
                for Border and Transportation Security; and
                    (B) shall have a minimum of 5 years professional 
                experience in law enforcement, and a minimum of 5 years 
                of management experience.
            (3) Functions.--The Assistant Secretary of the Bureau of 
        Border Security--
                    (A) shall establish the policies for performing 
                such functions as are--
                            (i) transferred to the Under Secretary for 
                        Border and Transportation Security by section 
                        441 and delegated to the Assistant Secretary by 
                        the Under Secretary for Border and 
                        Transportation Security; or
                            (ii) otherwise vested in the Assistant 
                        Secretary by law;
                    (B) shall oversee the administration of such 
                policies; and
                    (C) shall advise the Under Secretary for Border and 
                Transportation Security with respect to any policy or 
                operation of the Bureau of Border Security that may 
                affect the Bureau of Citizenship and Immigration 
                Services established under subtitle E, including 
                potentially conflicting policies or operations.
            (4) Program to collect information relating to foreign 
        students.--The Assistant Secretary of the Bureau of Border 
        Security shall be responsible for administering the program to 
        collect information relating to nonimmigrant foreign students 
        and other exchange program participants described in section 
        641 of the Illegal Immigration Reform and Immigrant 
        Responsibility Act of 1996 (8 U.S.C. 1372), including the 
        Student and Exchange Visitor Information System established 
        under that section, and shall use such information to carry out 
        the enforcement functions of the Bureau.
            (5) Managerial rotation program.--
                    (A) In general.--Not later than 1 year after the 
                date on which the transfer of functions specified under 
                section 441 takes effect, the Assistant Secretary of 
                the Bureau of Border Security shall design and 
                implement a managerial rotation program under which 
                employees of such bureau holding positions involving 
                supervisory or managerial responsibility and 
                classified, in accordance with chapter 51 of title 5, 
                United States Code, as a GS-14 or above, shall--
                            (i) gain some experience in all the major 
                        functions performed by such bureau; and
                            (ii) work in at least one local office of 
                        such bureau.
                    (B) Report.--Not later than 2 years after the date 
                on which the transfer of functions specified under 
                section 441 takes effect, the Secretary shall submit a 
                report to the Congress on the implementation of such 
                program.
    (b) Chief of Policy and Strategy.--
            (1) In general.--There shall be a position of Chief of 
        Policy and Strategy for the Bureau of Border Security.
            (2) Functions.--In consultation with Bureau of Border 
        Security personnel in local offices, the Chief of Policy and 
        Strategy shall be responsible for--
                    (A) making policy recommendations and performing 
                policy research and analysis on immigration enforcement 
                issues; and
                    (B) coordinating immigration policy issues with the 
                Chief of Policy and Strategy for the Bureau of 
                Citizenship and Immigration Services (established under 
                subtitle E), as appropriate.
    (c) Legal Advisor.--There shall be a principal legal advisor to the 
Assistant Secretary of the Bureau of Border Security. The legal advisor 
shall provide specialized legal advice to the Assistant Secretary of 
the Bureau of Border Security and shall represent the bureau in all 
exclusion, deportation, and removal proceedings before the Executive 
Office for Immigration Review.

SEC. 443. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    The Under Secretary for Border and Transportation Security shall be 
responsible for--
            (1) conducting investigations of noncriminal allegations of 
        misconduct, corruption, and fraud involving any employee of the 
        Bureau of Border Security that are not subject to investigation 
        by the Inspector General for the Department;
            (2) inspecting the operations of the Bureau of Border 
        Security and providing assessments of the quality of the 
        operations of such bureau as a whole and each of its 
        components; and
            (3) providing an analysis of the management of the Bureau 
        of Border Security.

SEC. 444. EMPLOYEE DISCIPLINE.

    The Under Secretary for Border and Transportation Security may, 
notwithstanding any other provision of law, impose disciplinary action, 
including termination of employment, pursuant to policies and 
procedures applicable to employees of the Federal Bureau of 
Investigation, on any employee of the Bureau of Border Security who 
willfully deceives the Congress or agency leadership on any matter.

SEC. 445. REPORT ON IMPROVING ENFORCEMENT FUNCTIONS.

    (a) In General.--The Secretary, not later than 1 year after being 
sworn into office, shall submit to the Committees on Appropriations and 
the Judiciary of the House of Representatives and of the Senate a 
report with a plan detailing how the Bureau of Border Security, after 
the transfer of functions specified under section 441 takes effect, 
will enforce comprehensively, effectively, and fairly all the 
enforcement provisions of the Immigration and Nationality Act (8 U.S.C. 
1101 et seq.) relating to such functions.
    (b) Consultation.--In carrying out subsection (a), the Secretary of 
Homeland Security shall consult with the Attorney General, the 
Secretary of State, the Director of the Federal Bureau of 
Investigation, the Secretary of the Treasury, the Secretary of Labor, 
the Commissioner of Social Security, the Director of the Executive 
Office for Immigration Review, and the heads of State and local law 
enforcement agencies to determine how to most effectively conduct 
enforcement operations.

SEC. 446. SENSE OF CONGRESS REGARDING CONSTRUCTION OF FENCING NEAR SAN 
              DIEGO, CALIFORNIA.

    It is the sense of the Congress that completing the 14-mile border 
fence project required to be carried out under section 102(b) of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 
U.S.C. 1103 note) should be a priority for the Secretary.

            Subtitle E--Citizenship and Immigration Services

SEC. 451. ESTABLISHMENT OF BUREAU OF CITIZENSHIP AND IMMIGRATION 
              SERVICES.

    (a) Establishment of Bureau.--
            (1) In general.--There shall be in the Department a bureau 
        to be known as the ``Bureau of Citizenship and Immigration 
        Services''.
            (2) Director.--The head of the Bureau of Citizenship and 
        Immigration Services shall be the Director of the Bureau of 
        Citizenship and Immigration Services, who--
                    (A) shall report directly to the Deputy Secretary;
                    (B) shall have a minimum of 5 years of management 
                experience; and
                    (C) shall be paid at the same level as the 
                Assistant Secretary of the Bureau of Border Security.
            (3) Functions.--The Director of the Bureau of Citizenship 
        and Immigration Services--
                    (A) shall establish the policies for performing 
                such functions as are transferred to the Director by 
                this section or this Act or otherwise vested in the 
                Director by law;
                    (B) shall oversee the administration of such 
                policies;
                    (C) shall advise the Deputy Secretary with respect 
                to any policy or operation of the Bureau of Citizenship 
                and Immigration Services that may affect the Bureau of 
                Border Security of the Department, including 
                potentially conflicting policies or operations;
                    (D) shall establish national immigration services 
                policies and priorities;
                    (E) shall meet regularly with the Ombudsman 
                described in section 452 to correct serious service 
                problems identified by the Ombudsman; and
                    (F) shall establish procedures requiring a formal 
                response to any recommendations submitted in the 
                Ombudsman's annual report to Congress within 3 months 
                after its submission to Congress.
            (4) Managerial rotation program.--
                    (A) In general.--Not later than 1 year after the 
                effective date specified in section 455, the Director 
                of the Bureau of Citizenship and Immigration Services 
                shall design and implement a managerial rotation 
                program under which employees of such bureau holding 
                positions involving supervisory or managerial 
                responsibility and classified, in accordance with 
                chapter 51 of title 5, United States Code, as a GS-14 
                or above, shall--
                            (i) gain some experience in all the major 
                        functions performed by such bureau; and
                            (ii) work in at least one field office and 
                        one service center of such bureau.
                    (B) Report.--Not later than 2 years after the 
                effective date specified in section 455, the Secretary 
                shall submit a report to Congress on the implementation 
                of such program.
            (5) Pilot initiatives for backlog elimination.--The 
        Director of the Bureau of Citizenship and Immigration Services 
        is authorized to implement innovative pilot initiatives to 
        eliminate any remaining backlog in the processing of 
        immigration benefit applications, and to prevent any backlog in 
        the processing of such applications from recurring, in 
        accordance with section 204(a) of the Immigration Services and 
        Infrastructure Improvements Act of 2000 (8 U.S.C. 1573(a)). 
        Such initiatives may include measures such as increasing 
        personnel, transferring personnel to focus on areas with the 
        largest potential for backlog, and streamlining paperwork.
    (b) Transfer of Functions From Commissioner.--In accordance with 
title XV (relating to transition provisions), there are transferred 
from the Commissioner of Immigration and Naturalization to the Director 
of the Bureau of Citizenship and Immigration Services the following 
functions, and all personnel, infrastructure, and funding provided to 
the Commissioner in support of such functions immediately before the 
effective date specified in section 455:
            (1) Adjudications of immigrant visa petitions.
            (2) Adjudications of naturalization petitions.
            (3) Adjudications of asylum and refugee applications.
            (4) Adjudications performed at service centers.
            (5) All other adjudications performed by the Immigration 
        and Naturalization Service immediately before the effective 
        date specified in section 455.
    (c) Chief of Policy and Strategy.--
            (1) In general.--There shall be a position of Chief of 
        Policy and Strategy for the Bureau of Citizenship and 
        Immigration Services.
            (2) Functions.--In consultation with Bureau of Citizenship 
        and Immigration Services personnel in field offices, the Chief 
        of Policy and Strategy shall be responsible for--
                    (A) making policy recommendations and performing 
                policy research and analysis on immigration services 
                issues; and
                    (B) coordinating immigration policy issues with the 
                Chief of Policy and Strategy for the Bureau of Border 
                Security of the Department.
    (d) Legal Advisor.--
            (1) In general.--There shall be a principal legal advisor 
        to the Director of the Bureau of Citizenship and Immigration 
        Services.
            (2) Functions.--The legal advisor shall be responsible 
        for--
                    (A) providing specialized legal advice, opinions, 
                determinations, regulations, and any other assistance 
                to the Director of the Bureau of Citizenship and 
                Immigration Services with respect to legal matters 
                affecting the Bureau of Citizenship and Immigration 
                Services; and
                    (B) representing the Bureau of Citizenship and 
                Immigration Services in visa petition appeal 
                proceedings before the Executive Office for Immigration 
                Review.
    (e) Budget Officer.--
            (1) In general.--There shall be a Budget Officer for the 
        Bureau of Citizenship and Immigration Services.
            (2) Functions.--
                    (A) In general.--The Budget Officer shall be 
                responsible for--
                            (i) formulating and executing the budget of 
                        the Bureau of Citizenship and Immigration 
                        Services;
                            (ii) financial management of the Bureau of 
                        Citizenship and Immigration Services; and
                            (iii) collecting all payments, fines, and 
                        other debts for the Bureau of Citizenship and 
                        Immigration Services.
    (f) Chief of Office of Citizenship.--
            (1) In general.--There shall be a position of Chief of the 
        Office of Citizenship for the Bureau of Citizenship and 
        Immigration Services.
            (2) Functions.--The Chief of the Office of Citizenship for 
        the Bureau of Citizenship and Immigration Services shall be 
        responsible for promoting instruction and training on 
        citizenship responsibilities for aliens interested in becoming 
        naturalized citizens of the United States, including the 
        development of educational materials.

SEC. 452. CITIZENSHIP AND IMMIGRATION SERVICES OMBUDSMAN.

    (a) In General.--Within the Department, there shall be a position 
of Citizenship and Immigration Services Ombudsman (in this section 
referred to as the ``Ombudsman''). The Ombudsman shall report directly 
to the Deputy Secretary. The Ombudsman shall have a background in 
customer service as well as immigration law.
    (b) Functions.--It shall be the function of the Ombudsman--
            (1) to assist individuals and employers in resolving 
        problems with the Bureau of Citizenship and Immigration 
        Services;
            (2) to identify areas in which individuals and employers 
        have problems in dealing with the Bureau of Citizenship and 
        Immigration Services; and
            (3) to the extent possible, to propose changes in the 
        administrative practices of the Bureau of Citizenship and 
        Immigration Services to mitigate problems identified under 
        paragraph (2).
    (c) Annual Reports.--
            (1) Objectives.--Not later than June 30 of each calendar 
        year, the Ombudsman shall report to the Committee on the 
        Judiciary of the House of Representatives and the Senate on the 
        objectives of the Office of the Ombudsman for the fiscal year 
        beginning in such calendar year. Any such report shall contain 
        full and substantive analysis, in addition to statistical 
        information, and--
                    (A) shall identify the recommendations the Office 
                of the Ombudsman has made on improving services and 
                responsiveness of the Bureau of Citizenship and 
                Immigration Services;
                    (B) shall contain a summary of the most pervasive 
                and serious problems encountered by individuals and 
                employers, including a description of the nature of 
                such problems;
                    (C) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for which action 
                has been taken and the result of such action;
                    (D) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for which action 
                remains to be completed and the period during which 
                each item has remained on such inventory;
                    (E) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for which no 
                action has been taken, the period during which each 
                item has remained on such inventory, the reasons for 
                the inaction, and shall identify any official of the 
                Bureau of Citizenship and Immigration Services who is 
                responsible for such inaction;
                    (F) shall contain recommendations for such 
                administrative action as may be appropriate to resolve 
                problems encountered by individuals and employers, 
                including problems created by excessive backlogs in the 
                adjudication and processing of immigration benefit 
                petitions and applications; and
                    (G) shall include such other information as the 
                Ombudsman may deem advisable.
            (2) Report to be submitted directly.--Each report required 
        under this subsection shall be provided directly to the 
        committees described in paragraph (1) without any prior comment 
        or amendment from the Secretary, Deputy Secretary, Director of 
        the Bureau of Citizenship and Immigration Services, or any 
        other officer or employee of the Department or the Office of 
        Management and Budget.
    (d) Other Responsibilities.--The Ombudsman--
            (1) shall monitor the coverage and geographic allocation of 
        local offices of the Ombudsman;
            (2) shall develop guidance to be distributed to all 
        officers and employees of the Bureau of Citizenship and 
        Immigration Services outlining the criteria for referral of 
        inquiries to local offices of the Ombudsman;
            (3) shall ensure that the local telephone number for each 
        local office of the Ombudsman is published and available to 
        individuals and employers served by the office; and
            (4) shall meet regularly with the Director of the Bureau of 
        Citizenship and Immigration Services to identify serious 
        service problems and to present recommendations for such 
        administrative action as may be appropriate to resolve problems 
        encountered by individuals and employers.
    (e) Personnel Actions.--
            (1) In general.--The Ombudsman shall have the 
        responsibility and authority--
                    (A) to appoint local ombudsmen and make available 
                at least 1 such ombudsman for each State; and
                    (B) to evaluate and take personnel actions 
                (including dismissal) with respect to any employee of 
                any local office of the Ombudsman.
            (2) Consultation.--The Ombudsman may consult with the 
        appropriate supervisory personnel of the Bureau of Citizenship 
        and Immigration Services in carrying out the Ombudsman's 
        responsibilities under this subsection.
    (f) Responsibilities of Bureau of Citizenship and Immigration 
Services.--The Director of the Bureau of Citizenship and Immigration 
Services shall establish procedures requiring a formal response to all 
recommendations submitted to such director by the Ombudsman within 3 
months after submission to such director.
    (g) Operation of Local Offices.--
            (1) In general.--Each local ombudsman--
                    (A) shall report to the Ombudsman or the delegate 
                thereof;
                    (B) may consult with the appropriate supervisory 
                personnel of the Bureau of Citizenship and Immigration 
                Services regarding the daily operation of the local 
                office of such ombudsman;
                    (C) shall, at the initial meeting with any 
                individual or employer seeking the assistance of such 
                local office, notify such individual or employer that 
                the local offices of the Ombudsman operate 
                independently of any other component of the Department 
                and report directly to Congress through the Ombudsman; 
                and
                    (D) at the local ombudsman's discretion, may 
                determine not to disclose to the Bureau of Citizenship 
                and Immigration Services contact with, or information 
                provided by, such individual or employer.
            (2) Maintenance of independent communications.--Each local 
        office of the Ombudsman shall maintain a phone, facsimile, and 
        other means of electronic communication access, and a post 
        office address, that is separate from those maintained by the 
        Bureau of Citizenship and Immigration Services, or any 
        component of the Bureau of Citizenship and Immigration 
        Services.

SEC. 453. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    (a) In General.--The Director of the Bureau of Citizenship and 
Immigration Services shall be responsible for--
            (1) conducting investigations of noncriminal allegations of 
        misconduct, corruption, and fraud involving any employee of the 
        Bureau of Citizenship and Immigration Services that are not 
        subject to investigation by the Inspector General for the 
        Department;
            (2) inspecting the operations of the Bureau of Citizenship 
        and Immigration Services and providing assessments of the 
        quality of the operations of such bureau as a whole and each of 
        its components; and
            (3) providing an analysis of the management of the Bureau 
        of Citizenship and Immigration Services.
    (b) Special Considerations.--In providing assessments in accordance 
with subsection (a)(2) with respect to a decision of the Bureau of 
Citizenship and Immigration Services, or any of its components, 
consideration shall be given to--
            (1) the accuracy of the findings of fact and conclusions of 
        law used in rendering the decision;
            (2) any fraud or misrepresentation associated with the 
        decision; and
            (3) the efficiency with which the decision was rendered.

SEC. 454. EMPLOYEE DISCIPLINE.

    The Director of the Bureau of Citizenship and Immigration Services 
may, notwithstanding any other provision of law, impose disciplinary 
action, including termination of employment, pursuant to policies and 
procedures applicable to employees of the Federal Bureau of 
Investigation, on any employee of the Bureau of Citizenship and 
Immigration Services who willfully deceives Congress or agency 
leadership on any matter.

SEC. 455. EFFECTIVE DATE.

    Notwithstanding section 4, sections 451 through 456, and the 
amendments made by such sections, shall take effect on the date on 
which the transfer of functions specified under section 441 takes 
effect.

SEC. 456. TRANSITION.

    (a) References.--With respect to any function transferred by this 
subtitle to, and exercised on or after the effective date specified in 
section 455 by, the Director of the Bureau of Citizenship and 
Immigration Services, any reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or pertaining to a component of government from which such function is 
transferred--
            (1) to the head of such component is deemed to refer to the 
        Director of the Bureau of Citizenship and Immigration Services; 
        or
            (2) to such component is deemed to refer to the Bureau of 
        Citizenship and Immigration Services.
    (b) Other Transition Issues.--
            (1) Exercise of authorities.--Except as otherwise provided 
        by law, a Federal official to whom a function is transferred by 
        this subtitle may, for purposes of performing the function, 
        exercise all authorities under any other provision of law that 
        were available with respect to the performance of that function 
        to the official responsible for the performance of the function 
        immediately before the effective date specified in section 455.
            (2) Transfer and allocation of appropriations and 
        personnel.--The personnel of the Department of Justice employed 
        in connection with the functions transferred by this subtitle 
        (and functions that the Secretary determines are properly 
        related to the functions of the Bureau of Citizenship and 
        Immigration Services), and the assets, liabilities, contracts, 
        property, records, and unexpended balance of appropriations, 
        authorizations, allocations, and other funds employed, held, 
        used, arising from, available to, or to be made available to, 
        the Immigration and Naturalization Service in connection with 
        the functions transferred by this subtitle, subject to section 
        202 of the Budget and Accounting Procedures Act of 1950, shall 
        be transferred to the Director of the Bureau of Citizenship and 
        Immigration Services for allocation to the appropriate 
        component of the Department. Unexpended funds transferred 
        pursuant to this paragraph shall be used only for the purposes 
        for which the funds were originally authorized and 
        appropriated. The Secretary shall have the right to adjust or 
        realign transfers of funds and personnel effected pursuant to 
        this subtitle for a period of 2 years after the effective date 
        specified in section 455.

SEC. 457. FUNDING FOR CITIZENSHIP AND IMMIGRATION SERVICES.

    Section 286(m) of the Immigration and Nationality Act (8 U.S.C. 
1356(m)) is amended by striking ``services, including the costs of 
similar services provided without charge to asylum applicants or other 
immigrants.'' and inserting ``services.''.

SEC. 458. BACKLOG ELIMINATION.

    Section 204(a)(1) of the Immigration Services and Infrastructure 
Improvements Act of 2000 (8 U.S.C. 1573(a)(1)) is amended by striking 
``not later than one year after the date of enactment of this Act;'' 
and inserting ``1 year after the date of the enactment of the Homeland 
Security Act of 2002;''.

SEC. 459. REPORT ON IMPROVING IMMIGRATION SERVICES.

    (a) In General.--The Secretary, not later than 1 year after the 
effective date of this Act, shall submit to the Committees on the 
Judiciary and Appropriations of the House of Representatives and of the 
Senate a report with a plan detailing how the Bureau of Citizenship and 
Immigration Services, after the transfer of functions specified in this 
subtitle takes effect, will complete efficiently, fairly, and within a 
reasonable time, the adjudications described in paragraphs (1) through 
(5) of section 451(b).
    (b) Contents.--For each type of adjudication to be undertaken by 
the Director of the Bureau of Citizenship and Immigration Services, the 
report shall include the following:
            (1) Any potential savings of resources that may be 
        implemented without affecting the quality of the adjudication.
            (2) The goal for processing time with respect to the 
        application.
            (3) Any statutory modifications with respect to the 
        adjudication that the Secretary considers advisable.
    (c) Consultation.--In carrying out subsection (a), the Secretary 
shall consult with the Secretary of State, the Secretary of Labor, the 
Assistant Secretary of the Bureau of Border Security of the Department, 
and the Director of the Executive Office for Immigration Review to 
determine how to streamline and improve the process for applying for 
and making adjudications described in section 451(b) and related 
processes.

SEC. 460. REPORT ON RESPONDING TO FLUCTUATING NEEDS.

    Not later than 30 days after the date of the enactment of this Act, 
the Attorney General shall submit to Congress a report on changes in 
law, including changes in authorizations of appropriations and in 
appropriations, that are needed to permit the Immigration and 
Naturalization Service, and, after the transfer of functions specified 
in this subtitle takes effect, the Bureau of Citizenship and 
Immigration Services of the Department, to ensure a prompt and timely 
response to emergent, unforeseen, or impending changes in the number of 
applications for immigration benefits, and otherwise to ensure the 
accommodation of changing immigration service needs.

SEC. 461. APPLICATION OF INTERNET-BASED TECHNOLOGIES.

    (a) Establishment of Tracking System.--The Secretary, not later 
than 1 year after the effective date of this Act, in consultation with 
the Technology Advisory Committee established under subsection (c), 
shall establish an Internet-based system, that will permit a person, 
employer, immigrant, or nonimmigrant who has filings with the Secretary 
for any benefit under the Immigration and Nationality Act (8 U.S.C. 
1101 et seq.), access to online information about the processing status 
of the filing involved.
    (b) Feasibility Study for Online Filing and Improved Processing.--
            (1) Online filing.--The Secretary, in consultation with the 
        Technology Advisory Committee established under subsection (c), 
        shall conduct a feasibility study on the online filing of the 
        filings described in subsection (a). The study shall include a 
        review of computerization and technology of the Immigration and 
        Naturalization Service relating to the immigration services and 
        processing of filings related to immigrant services. The study 
        shall also include an estimate of the timeframe and cost and 
        shall consider other factors in implementing such a filing 
        system, including the feasibility of fee payment online.
            (2) Report.--A report on the study under this subsection 
        shall be submitted to the Committees on the Judiciary of the 
        House of Representatives and the Senate not later than 1 year 
        after the effective date of this Act.
    (c) Technology Advisory Committee.--
            (1) Establishment.--The Secretary shall establish, not 
        later than 60 days after the effective date of this Act, an 
        advisory committee (in this section referred to as the 
        ``Technology Advisory Committee'') to assist the Secretary in--
                    (A) establishing the tracking system under 
                subsection (a); and
                    (B) conducting the study under subsection (b).
        The Technology Advisory Committee shall be established after 
        consultation with the Committees on the Judiciary of the House 
        of Representatives and the Senate.
            (2) Composition.--The Technology Advisory Committee shall 
        be composed of representatives from high technology companies 
        capable of establishing and implementing the system in an 
        expeditious manner, and representatives of persons who may use 
        the tracking system described in subsection (a) and the online 
        filing system described in subsection (b)(1).

SEC. 462. CHILDREN'S AFFAIRS.

    (a) Transfer of Functions.--There are transferred to the Director 
of the Office of Refugee Resettlement of the Department of Health and 
Human Services functions under the immigration laws of the United 
States with respect to the care of unaccompanied alien children that 
were vested by statute in, or performed by, the Commissioner of 
Immigration and Naturalization (or any officer, employee, or component 
of the Immigration and Naturalization Service) immediately before the 
effective date specified in subsection (d).
    (b) Functions.--
            (1) In general.--Pursuant to the transfer made by 
        subsection (a), the Director of the Office of Refugee 
        Resettlement shall be responsible for--
                    (A) coordinating and implementing the care and 
                placement of unaccompanied alien children who are in 
                Federal custody by reason of their immigration status, 
                including developing a plan to be submitted to Congress 
                on how to ensure that qualified and independent legal 
                counsel is timely appointed to represent the interests 
                of each such child, consistent with the law regarding 
                appointment of counsel that is in effect on the date of 
                the enactment of this Act;
                    (B) ensuring that the interests of the child are 
                considered in decisions and actions relating to the 
                care and custody of an unaccompanied alien child;
                    (C) making placement determinations for all 
                unaccompanied alien children who are in Federal custody 
                by reason of their immigration status;
                    (D) implementing the placement determinations;
                    (E) implementing policies with respect to the care 
                and placement of unaccompanied alien children;
                    (F) identifying a sufficient number of qualified 
                individuals, entities, and facilities to house 
                unaccompanied alien children;
                    (G) overseeing the infrastructure and personnel of 
                facilities in which unaccompanied alien children 
                reside;
                    (H) reuniting unaccompanied alien children with a 
                parent abroad in appropriate cases;
                    (I) compiling, updating, and publishing at least 
                annually a state-by-state list of professionals or 
                other entities qualified to provide guardian and 
                attorney representation services for unaccompanied 
                alien children;
                    (J) maintaining statistical information and other 
                data on unaccompanied alien children for whose care and 
                placement the Director is responsible, which shall 
                include--
                            (i) biographical information, such as a 
                        child's name, gender, date of birth, country of 
                        birth, and country of habitual residence;
                            (ii) the date on which the child came into 
                        Federal custody by reason of his or her 
                        immigration status;
                            (iii) information relating to the child's 
                        placement, removal, or release from each 
                        facility in which the child has resided;
                            (iv) in any case in which the child is 
                        placed in detention or released, an explanation 
                        relating to the detention or release; and
                            (v) the disposition of any actions in which 
                        the child is the subject;
                    (K) collecting and compiling statistical 
                information from the Department of Justice, the 
                Department of Homeland Security, and the Department of 
                State on each department's actions relating to 
                unaccompanied alien children; and
                    (L) conducting investigations and inspections of 
                facilities and other entities in which unaccompanied 
                alien children reside.
            (2) Coordination with other entities; no release on own 
        recognizance.--In making determinations described in paragraph 
        (1)(C), the Director of the Office of Refugee Resettlement--
                    (A) shall consult with appropriate juvenile justice 
                professionals, the Director of the Bureau of 
                Citizenship and Immigration Services, and the Assistant 
                Secretary of the Bureau of Border Security to ensure 
                that such determinations ensure that unaccompanied 
                alien children described in such subparagraph--
                            (i) are likely to appear for all hearings 
                        or proceedings in which they are involved;
                            (ii) are protected from smugglers, 
                        traffickers, or others who might seek to 
                        victimize or otherwise engage them in criminal, 
                        harmful, or exploitive activity; and
                            (iii) are placed in a setting in which they 
                        not likely to pose a danger to themselves or 
                        others; and
                    (B) shall not release such children upon their own 
                recognizance.
            (3) Duties with respect to foster care.--In carrying out 
        the duties described in paragraph (1)(G), the Director of the 
        Office of Refugee Resettlement is encouraged to use the refugee 
        children foster care system established pursuant to section 
        412(d) of the Immigration and Nationality Act (8 U.S.C. 
        1522(d)) for the placement of unaccompanied alien children.
    (c) Rule of Construction.--Nothing in this section may be construed 
to transfer the responsibility for adjudicating benefit determinations 
under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) from 
the authority of any official of the Department of Justice, the 
Department of Homeland Security, or the Department of State.
    (d) Effective Date.--Notwithstanding section 4, this section shall 
take effect on the date on which the transfer of functions specified 
under section 441 takes effect.
    (e) References.--With respect to any function transferred by this 
section, any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to a component of government from which such function is 
transferred--
            (1) to the head of such component is deemed to refer to the 
        Director of the Office of Refugee Resettlement; or
            (2) to such component is deemed to refer to the Office of 
        Refugee Resettlement of the Department of Health and Human 
        Services.
    (f) Other Transition Issues.--
            (1) Exercise of authorities.--Except as otherwise provided 
        by law, a Federal official to whom a function is transferred by 
        this section may, for purposes of performing the function, 
        exercise all authorities under any other provision of law that 
        were available with respect to the performance of that function 
        to the official responsible for the performance of the function 
        immediately before the effective date specified in subsection 
        (d).
            (2) Savings provisions.--Subsections (a), (b), and (c) of 
        section 1512 shall apply to a transfer of functions under this 
        section in the same manner as such provisions apply to a 
        transfer of functions under this Act to the Department of 
        Homeland Security.
            (3) Transfer and allocation of appropriations and 
        personnel.--The personnel of the Department of Justice employed 
        in connection with the functions transferred by this section, 
        and the assets, liabilities, contracts, property, records, and 
        unexpended balance of appropriations, authorizations, 
        allocations, and other funds employed, held, used, arising 
        from, available to, or to be made available to, the Immigration 
        and Naturalization Service in connection with the functions 
        transferred by this section, subject to section 202 of the 
        Budget and Accounting Procedures Act of 1950, shall be 
        transferred to the Director of the Office of Refugee 
        Resettlement for allocation to the appropriate component of the 
        Department of Health and Human Services. Unexpended funds 
        transferred pursuant to this paragraph shall be used only for 
        the purposes for which the funds were originally authorized and 
        appropriated.
    (g) Definitions.--As used in this section--
            (1) the term ``placement'' means the placement of an 
        unaccompanied alien child in either a detention facility or an 
        alternative to such a facility; and
            (2) the term ``unaccompanied alien child'' means a child 
        who--
                    (A) has no lawful immigration status in the United 
                States;
                    (B) has not attained 18 years of age; and
                    (C) with respect to whom--
                            (i) there is no parent or legal guardian in 
                        the United States; or
                            (ii) no parent or legal guardian in the 
                        United States is available to provide care and 
                        physical custody.

               Subtitle F--General Immigration Provisions

SEC. 471. ABOLISHMENT OF INS.

    (a) In General.--Upon completion of all transfers from the 
Immigration and Naturalization Service as provided for by this Act, the 
Immigration and Naturalization Service of the Department of Justice is 
abolished.
    (b) Prohibition.--The authority provided by section 1502 may be 
used to reorganize functions or organizational units within the Bureau 
of Border Security or the Bureau of Citizenship and Immigration 
Services, but may not be used to recombine the two bureaus into a 
single agency or otherwise to combine, join, or consolidate functions 
or organizational units of the two bureaus with each other.

SEC. 472. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) Definitions.--For purposes of this section--
            (1) the term ``employee'' means an employee (as defined by 
        section 2105 of title 5, United States Code) who--
                    (A) has completed at least 3 years of current 
                continuous service with 1 or more covered entities; and
                    (B) is serving under an appointment without time 
                limitation;
        but does not include any person under subparagraphs (A)-(G) of 
        section 663(a)(2) of Public Law 104-208 (5 U.S.C. 5597 note);
            (2) the term ``covered entity'' means--
                    (A) the Immigration and Naturalization Service;
                    (B) the Bureau of Border Security of the Department 
                of Homeland Security; and
                    (C) the Bureau of Citizenship and Immigration 
                Services of the Department of Homeland Security; and
            (3) the term ``transfer date'' means the date on which the 
        transfer of functions specified under section 441 takes effect.
    (b) Strategic Restructuring Plan.--Before the Attorney General or 
the Secretary obligates any resources for voluntary separation 
incentive payments under this section, such official shall submit to 
the appropriate committees of Congress a strategic restructuring plan, 
which shall include--
            (1) an organizational chart depicting the covered entities 
        after their restructuring pursuant to this Act;
            (2) a summary description of how the authority under this 
        section will be used to help carry out that restructuring; and
            (3) the information specified in section 663(b)(2) of 
        Public Law 104-208 (5 U.S.C. 5597 note).
As used in the preceding sentence, the ``appropriate committees of 
Congress'' are the Committees on Appropriations, Government Reform, and 
the Judiciary of the House of Representatives, and the Committees on 
Appropriations, Governmental Affairs, and the Judiciary of the Senate.
    (c) Authority.--The Attorney General and the Secretary may, to the 
extent necessary to help carry out their respective strategic 
restructuring plan described in subsection (b), make voluntary 
separation incentive payments to employees. Any such payment--
            (1) shall be paid to the employee, in a lump sum, after the 
        employee has separated from service;
            (2) shall be paid from appropriations or funds available 
        for the payment of basic pay of the employee;
            (3) shall be equal to the lesser of--
                    (A) the amount the employee would be entitled to 
                receive under section 5595(c) of title 5, United States 
                Code; or
                    (B) an amount not to exceed $25,000, as determined 
                by the Attorney General or the Secretary;
            (4) may not be made except in the case of any qualifying 
        employee who voluntarily separates (whether by retirement or 
        resignation) before the end of--
                    (A) the 3-month period beginning on the date on 
                which such payment is offered or made available to such 
                employee; or
                    (B) the 3-year period beginning on the date of the 
                enactment of this Act,
        whichever occurs first;
            (5) shall not be a basis for payment, and shall not be 
        included in the computation, of any other type of Government 
        benefit; and
            (6) shall not be taken into account in determining the 
        amount of any severance pay to which the employee may be 
        entitled under section 5595 of title 5, United States Code, 
        based on any other separation.
    (d) Additional Agency Contributions to the Retirement Fund.--
            (1) In general.--In addition to any payments which it is 
        otherwise required to make, the Department of Justice and the 
        Department of Homeland Security shall, for each fiscal year 
        with respect to which it makes any voluntary separation 
        incentive payments under this section, remit to the Office of 
        Personnel Management for deposit in the Treasury of the United 
        States to the credit of the Civil Service Retirement and 
        Disability Fund the amount required under paragraph (2).
            (2) Amount required.--The amount required under this 
        paragraph shall, for any fiscal year, be the amount under 
        subparagraph (A) or (B), whichever is greater.
                    (A) First method.--The amount under this 
                subparagraph shall, for any fiscal year, be equal to 
                the minimum amount necessary to offset the additional 
                costs to the retirement systems under title 5, United 
                States Code (payable out of the Civil Service 
                Retirement and Disability Fund) resulting from the 
                voluntary separation of the employees described in 
                paragraph (3), as determined under regulations of the 
                Office of Personnel Management.
                    (B) Second method.--The amount under this 
                subparagraph shall, for any fiscal year, be equal to 45 
                percent of the sum total of the final basic pay of the 
                employees described in paragraph (3).
            (3) Computations to be based on separations occurring in 
        the fiscal year involved.--The employees described in this 
        paragraph are those employees who receive a voluntary 
        separation incentive payment under this section based on their 
        separating from service during the fiscal year with respect to 
        which the payment under this subsection relates.
            (4) Final basic pay defined.--In this subsection, the term 
        ``final basic pay'' means, with respect to an employee, the 
        total amount of basic pay which would be payable for a year of 
        service by such employee, computed using the employee's final 
        rate of basic pay, and, if last serving on other than a full-
        time basis, with appropriate adjustment therefor.
    (e) Effect of Subsequent Employment with the Government.--An 
individual who receives a voluntary separation incentive payment under 
this section and who, within 5 years after the date of the separation 
on which the payment is based, accepts any compensated employment with 
the Government or works for any agency of the Government through a 
personal services contract, shall be required to pay, prior to the 
individual's first day of employment, the entire amount of the 
incentive payment. Such payment shall be made to the covered entity 
from which the individual separated or, if made on or after the 
transfer date, to the Deputy Secretary or the Under Secretary for 
Border and Transportation Security (for transfer to the appropriate 
component of the Department of Homeland Security, if necessary).
    (f) Effect on Employment Levels.--
            (1) Intended effect.--Voluntary separations under this 
        section are not intended to necessarily reduce the total number 
        of full-time equivalent positions in any covered entity.
            (2) Use of voluntary separations.--A covered entity may 
        redeploy or use the full-time equivalent positions vacated by 
        voluntary separations under this section to make other 
        positions available to more critical locations or more critical 
        occupations.

SEC. 473. AUTHORITY TO CONDUCT A DEMONSTRATION PROJECT RELATING TO 
              DISCIPLINARY ACTION.

    (a) In General.--The Attorney General and the Secretary may each, 
during a period ending not later than 5 years after the date of the 
enactment of this Act, conduct a demonstration project for the purpose 
of determining whether one or more changes in the policies or 
procedures relating to methods for disciplining employees would result 
in improved personnel management.
    (b) Scope.--A demonstration project under this section--
            (1) may not cover any employees apart from those employed 
        in or under a covered entity; and
            (2) shall not be limited by any provision of chapter 43, 
        75, or 77 of title 5, United States Code.
    (c) Procedures.--Under the demonstration project--
            (1) the use of alternative means of dispute resolution (as 
        defined in section 571 of title 5, United States Code) shall be 
        encouraged, whenever appropriate; and
            (2) each covered entity under the jurisdiction of the 
        official conducting the project shall be required to provide 
        for the expeditious, fair, and independent review of any action 
        to which section 4303 or subchapter II of chapter 75 of such 
        title 5 would otherwise apply (except an action described in 
        section 7512(5) of such title 5).
    (d) Actions Involving Discrimination.--Notwithstanding any other 
provision of this section, if, in the case of any matter described in 
section 7702(a)(1)(B) of title 5, United States Code, there is no 
judicially reviewable action under the demonstration project within 120 
days after the filing of an appeal or other formal request for review 
(referred to in subsection (c)(2)), an employee shall be entitled to 
file a civil action to the same extent and in the same manner as 
provided in section 7702(e)(1) of such title 5 (in the matter following 
subparagraph (C) thereof).
    (e) Certain Employees.--Employees shall not be included within any 
project under this section if such employees are--
            (1) neither managers nor supervisors; and
            (2) within a unit with respect to which a labor 
        organization is accorded exclusive recognition under chapter 71 
        of title 5, United States Code.
Notwithstanding the preceding sentence, an aggrieved employee within a 
unit (referred to in paragraph (2)) may elect to participate in a 
complaint procedure developed under the demonstration project in lieu 
of any negotiated grievance procedure and any statutory procedure (as 
such term is used in section 7121 of such title 5).
    (f) Reports.--The General Accounting Office shall prepare and 
submit to the Committees on Government Reform and the Judiciary of the 
House of Representatives and the Committees on Governmental Affairs and 
the Judiciary of the Senate periodic reports on any demonstration 
project conducted under this section, such reports to be submitted 
after the second and fourth years of its operation. Upon request, the 
Attorney General or the Secretary shall furnish such information as the 
General Accounting Office may require to carry out this subsection.
    (g) Definition.--In this section, the term ``covered entity'' has 
the meaning given such term in section 472(a)(2).

SEC. 474. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the missions of the Bureau of Border Security and the 
        Bureau of Citizenship and Immigration Services are equally 
        important and, accordingly, they each should be adequately 
        funded; and
            (2) the functions transferred under this subtitle should 
        not, after such transfers take effect, operate at levels below 
        those in effect prior to the enactment of this Act.

SEC. 475. DIRECTOR OF SHARED SERVICES.

    (a) In General.--Within the Office of Deputy Secretary, there shall 
be a Director of Shared Services.
    (b) Functions.--The Director of Shared Services shall be 
responsible for the coordination of resources for the Bureau of Border 
Security and the Bureau of Citizenship and Immigration Services, 
including--
            (1) information resources management, including computer 
        databases and information technology;
            (2) records and file management; and
            (3) forms management.

SEC. 476. SEPARATION OF FUNDING.

    (a) In General.--There shall be established separate accounts in 
the Treasury of the United States for appropriated funds and other 
deposits available for the Bureau of Citizenship and Immigration 
Services and the Bureau of Border Security.
    (b) Separate Budgets.--To ensure that the Bureau of Citizenship and 
Immigration Services and the Bureau of Border Security are funded to 
the extent necessary to fully carry out their respective functions, the 
Director of the Office of Management and Budget shall separate the 
budget requests for each such entity.
    (c) Fees.--Fees imposed for a particular service, application, or 
benefit shall be deposited into the account established under 
subsection (a) that is for the bureau with jurisdiction over the 
function to which the fee relates.
    (d) Fees Not Transferable.--No fee may be transferred between the 
Bureau of Citizenship and Immigration Services and the Bureau of Border 
Security for purposes not authorized by section 286 of the Immigration 
and Nationality Act (8 U.S.C. 1356).

SEC. 477. REPORTS AND IMPLEMENTATION PLANS.

    (a) Division of Funds.--The Secretary, not later than 120 days 
after the effective date of this Act, shall submit to the Committees on 
Appropriations and the Judiciary of the House of Representatives and of 
the Senate a report on the proposed division and transfer of funds, 
including unexpended funds, appropriations, and fees, between the 
Bureau of Citizenship and Immigration Services and the Bureau of Border 
Security.
    (b) Division of Personnel.--The Secretary, not later than 120 days 
after the effective date of this Act, shall submit to the Committees on 
Appropriations and the Judiciary of the House of Representatives and of 
the Senate a report on the proposed division of personnel between the 
Bureau of Citizenship and Immigration Services and the Bureau of Border 
Security.
    (c) Implementation Plan.--
            (1) In general.--The Secretary, not later than 120 days 
        after the effective date of this Act, and every 6 months 
        thereafter until the termination of fiscal year 2005, shall 
        submit to the Committees on Appropriations and the Judiciary of 
        the House of Representatives and of the Senate an 
        implementation plan to carry out this Act.
            (2) Contents.--The implementation plan should include 
        details concerning the separation of the Bureau of Citizenship 
        and Immigration Services and the Bureau of Border Security, 
        including the following:
                    (A) Organizational structure, including the field 
                structure.
                    (B) Chain of command.
                    (C) Procedures for interaction among such bureaus.
                    (D) Fraud detection and investigation.
                    (E) The processing and handling of removal 
                proceedings, including expedited removal and 
                applications for relief from removal.
                    (F) Recommendations for conforming amendments to 
                the Immigration and Nationality Act (8 U.S.C. 1101 et 
                seq.).
                    (G) Establishment of a transition team.
                    (H) Methods to phase in the costs of separating the 
                administrative support systems of the Immigration and 
                Naturalization Service in order to provide for separate 
                administrative support systems for the Bureau of 
                Citizenship and Immigration Services and the Bureau of 
                Border Security.
    (d) Comptroller General Studies and Reports.--
            (1) Status reports on transition.--Not later than 18 months 
        after the date on which the transfer of functions specified 
        under section 441 takes effect, and every 6 months thereafter, 
        until full implementation of this subtitle has been completed, 
        the Comptroller General of the United States shall submit to 
        the Committees on Appropriations and on the Judiciary of the 
        House of Representatives and the Senate a report containing the 
        following:
                    (A) A determination of whether the transfers of 
                functions made by subtitles D and E have been 
                completed, and if a transfer of functions has not taken 
                place, identifying the reasons why the transfer has not 
                taken place.
                    (B) If the transfers of functions made by subtitles 
                D and E have been completed, an identification of any 
                issues that have arisen due to the completed transfers.
                    (C) An identification of any issues that may arise 
                due to any future transfer of functions.
            (2) Report on management.--Not later than 4 years after the 
        date on which the transfer of functions specified under section 
        441 takes effect, the Comptroller General of the United States 
        shall submit to the Committees on Appropriations and on the 
        Judiciary of the House of Representatives and the Senate a 
        report, following a study, containing the following:
                    (A) Determinations of whether the transfer of 
                functions from the Immigration and Naturalization 
                Service to the Bureau of Citizenship and Immigration 
                Services and the Bureau of Border Security have 
                improved, with respect to each function transferred, 
                the following:
                            (i) Operations.
                            (ii) Management, including accountability 
                        and communication.
                            (iii) Financial administration.
                            (iv) Recordkeeping, including information 
                        management and technology.
                    (B) A statement of the reasons for the 
                determinations under subparagraph (A).
                    (C) Any recommendations for further improvements to 
                the Bureau of Citizenship and Immigration Services and 
                the Bureau of Border Security.
            (3) Report on fees.--Not later than 1 year after the date 
        of the enactment of this Act, the Comptroller General of the 
        United States shall submit to the Committees on the Judiciary 
        of the House of Representatives and of the Senate a report 
        examining whether the Bureau of Citizenship and Immigration 
        Services is likely to derive sufficient funds from fees to 
        carry out its functions in the absence of appropriated funds.

SEC. 478. IMMIGRATION FUNCTIONS.

    (a) Annual Report.--
            (1) In general.--One year after the date of the enactment 
        of this Act, and each year thereafter, the Secretary shall 
        submit a report to the President, to the Committees on the 
        Judiciary and Government Reform of the House of 
        Representatives, and to the Committees on the Judiciary and 
        Government Affairs of the Senate, on the impact the transfers 
        made by this subtitle has had on immigration functions.
            (2) Matter included.--The report shall address the 
        following with respect to the period covered by the report:
                    (A) The aggregate number of all immigration 
                applications and petitions received, and processed, by 
                the Department;
                    (B) Region-by-region statistics on the aggregate 
                number of immigration applications and petitions filed 
                by an alien (or filed on behalf of an alien) and 
                denied, disaggregated by category of denial and 
                application or petition type.
                    (C) The quantity of backlogged immigration 
                applications and petitions that have been processed, 
                the aggregate number awaiting processing, and a 
                detailed plan for eliminating the backlog.
                    (D) The average processing period for immigration 
                applications and petitions, disaggregated by 
                application or petition type.
                    (E) The number and types of immigration-related 
                grievances filed with any official of the Department of 
                Justice, and if those grievances were resolved.
                    (F) Plans to address grievances and improve 
                immigration services.
                    (G) Whether immigration-related fees were used 
                consistent with legal requirements regarding such use.
                    (H) Whether immigration-related questions conveyed 
                by customers to the Department (whether conveyed in 
                person, by telephone, or by means of the Internet) were 
                answered effectively and efficiently.
    (b) Sense of Congress Regarding Immigration Services.--It is the 
sense of Congress that--
            (1) the quality and efficiency of immigration services 
        rendered by the Federal Government should be improved after the 
        transfers made by this subtitle take effect; and
            (2) the Secretary should undertake efforts to guarantee 
        that concerns regarding the quality and efficiency of 
        immigration services are addressed after such effective date.

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

SEC. 501. UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE.

    There shall be in the Department a Directorate of Emergency 
Preparedness and Response headed by an Under Secretary for Emergency 
Preparedness and Response.

SEC. 502. RESPONSIBILITIES.

    The Secretary, acting through the Under Secretary for Emergency 
Preparedness and Response, shall include--
            (1) helping to ensure the effectiveness of emergency 
        response providers to terrorist attacks, major disasters, and 
        other emergencies;
            (2) with respect to the Nuclear Incident Response Team 
        (regardless of whether it is operating as an organizational 
        unit of the Department pursuant to this title)--
                    (A) establishing standards and certifying when 
                those standards have been met;
                    (B) conducting joint and other exercises and 
                training and evaluating performance; and
                    (C) providing funds to the Department of Energy and 
                the Environmental Protection Agency, as appropriate, 
                for homeland security planning, exercises and training, 
                and equipment;
            (3) providing the Federal Government's response to 
        terrorist attacks and major disasters, including--
                    (A) managing such response;
                    (B) directing the Domestic Emergency Support Team, 
                the Strategic National Stockpile, the National Disaster 
                Medical System, and (when operating as an 
                organizational unit of the Department pursuant to this 
                title) the Nuclear Incident Response Team;
                    (C) overseeing the Metropolitan Medical Response 
                System; and
                    (D) coordinating other Federal response resources 
                in the event of a terrorist attack or major disaster;
            (4) aiding the recovery from terrorist attacks and major 
        disasters;
            (5) building a comprehensive national incident management 
        system with Federal, State, and local government personnel, 
        agencies, and authorities, to respond to such attacks and 
        disasters;
            (6) consolidating existing Federal Government emergency 
        response plans into a single, coordinated national response 
        plan; and
            (7) developing comprehensive programs for developing 
        interoperative communications technology, and helping to ensure 
        that emergency response providers acquire such technology.

SEC. 503. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the 
Secretary the functions, personnel, assets, and liabilities of the 
following entities:
            (1) The Federal Emergency Management Agency, including the 
        functions of the Director of the Federal Emergency Management 
        Agency relating thereto.
            (2) The Integrated Hazard Information System of the 
        National Oceanic and Atmospheric Administration, which shall be 
        renamed ``FIRESAT''.
            (3) The National Domestic Preparedness Office of the 
        Federal Bureau of Investigation, including the functions of the 
        Attorney General relating thereto.
            (4) The Domestic Emergency Support Teams of the Department 
        of Justice, including the functions of the Attorney General 
        relating thereto.
            (5) The Office of Emergency Preparedness, the National 
        Disaster Medical System, and the Metropolitan Medical Response 
        System of the Department of Health and Human Services, 
        including the functions of the Secretary of Health and Human 
        Services and the Assistant Secretary for Public Health 
        Emergency Preparedness relating thereto.
            (6) The Strategic National Stockpile of the Department of 
        Health and Human Services, including the functions of the 
        Secretary of Health and Human Services relating thereto.

SEC. 504. NUCLEAR INCIDENT RESPONSE.

    (a) In General.--At the direction of the Secretary (in connection 
with an actual or threatened terrorist attack, major disaster, or other 
emergency in the United States), the Nuclear Incident Response Team 
shall operate as an organizational unit of the Department. While so 
operating, the Nuclear Incident Response Team shall be subject to the 
direction, authority, and control of the Secretary.
    (b) Rule of Construction.--Nothing in this title shall be construed 
to limit the ordinary responsibility of the Secretary of Energy and the 
Administrator of the Environmental Protection Agency for organizing, 
training, equipping, and utilizing their respective entities in the 
Nuclear Incident Response Team, or (subject to the provisions of this 
title) from exercising direction, authority, and control over them when 
they are not operating as a unit of the Department.

SEC. 505. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

    (a) In General.--With respect to all public health-related 
activities to improve State, local, and hospital preparedness and 
response to chemical, biological, radiological, and nuclear and other 
emerging terrorist threats carried out by the Department of Health and 
Human Services (including the Public Health Service), the Secretary of 
Health and Human Services shall set priorities and preparedness goals 
and further develop a coordinated strategy for such activities in 
collaboration with the Secretary.
    (b) Evaluation of Progress.--In carrying out subsection (a), the 
Secretary of Health and Human Services shall collaborate with the 
Secretary in developing specific benchmarks and outcome measurements 
for evaluating progress toward achieving the priorities and goals 
described in such subsection.

SEC. 506. DEFINITION.

    In this title, the term ``Nuclear Incident Response Team'' means a 
resource that includes--
            (1) those entities of the Department of Energy that perform 
        nuclear or radiological emergency support functions (including 
        accident response, search response, advisory, and technical 
        operations functions), radiation exposure functions at the 
        medical assistance facility known as the Radiation Emergency 
        Assistance Center/Training Site (REAC/TS), radiological 
        assistance functions, and related functions; and
            (2) those entities of the Environmental Protection Agency 
        that perform such support functions (including radiological 
        emergency response functions) and related functions.

SEC. 507. ROLE OF FEDERAL EMERGENCY MANAGEMENT AGENCY.

    (a) In General.--The functions of the Federal Emergency Management 
Agency include the following:
            (1) All functions and authorities prescribed by the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5121 et seq.).
            (2) Carrying out its mission to reduce the loss of life and 
        property and protect the Nation from all hazards by leading and 
        supporting the Nation in a comprehensive, risk-based emergency 
        management program--
                    (A) of mitigation, by taking sustained actions to 
                reduce or eliminate long-term risk to people and 
                property from hazards and their effects;
                    (B) of planning for building the emergency 
                management profession to prepare effectively for, 
                mitigate against, respond to, and recover from any 
                hazard;
                    (C) of response, by conducting emergency operations 
                to save lives and property through positioning 
                emergency equipment and supplies, through evacuating 
                potential victims, through providing food, water, 
                shelter, and medical care to those in need, and through 
                restoring critical public services;
                    (D) of recovery, by rebuilding communities so 
                individuals, businesses, and governments can function 
                on their own, return to normal life, and protect 
                against future hazards; and
                    (E) of increased efficiencies, by coordinating 
                efforts relating to mitigation, planning, response, and 
                recovery.
    (b) Federal Response Plan.--
            (1) Role of fema.--Notwithstanding any other provision of 
        this Act, the Federal Emergency Management Agency shall remain 
        the lead agency for the Federal Response Plan established under 
        Executive Order 12148 (44 Fed. Reg. 43239) and Executive Order 
        12656 (53 Fed. Reg. 47491).
            (2) Revision of response plan.--Not later than 60 days 
        after the date of enactment of this Act, the Director of the 
        Federal Emergency Management Agency shall revise the Federal 
        Response Plan to reflect the establishment of and incorporate 
        the Department.

SEC. 508. USE OF NATIONAL PRIVATE SECTOR NETWORKS IN EMERGENCY 
              RESPONSE.

    To the maximum extent practicable, the Secretary shall use national 
private sector networks and infrastructure for emergency response to 
chemical, biological, radiological, nuclear, or explosive disasters, 
and other major disasters.

SEC. 509. USE OF COMMERCIALLY AVAILABLE TECHNOLOGY, GOODS, AND 
              SERVICES.

    It is the sense of Congress that--
            (1) the Secretary should, to the maximum extent possible, 
        use off-the-shelf commercially developed technologies to ensure 
        that the Department's information technology systems allow the 
        Department to collect, manage, share, analyze, and disseminate 
        information securely over multiple channels of communication; 
        and
            (2) in order to further the policy of the United States to 
        avoid competing commercially with the private sector, the 
        Secretary should rely on commercial sources to supply the goods 
        and services needed by the Department.

   TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
    FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS

SEC. 601. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
              FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL 
              ORGANIZATIONS.

    (a) Findings.--Congress finds the following:
            (1) Members of the Armed Forces of the United States defend 
        the freedom and security of our Nation.
            (2) Members of the Armed Forces of the United States have 
        lost their lives while battling the evils of terrorism around 
        the world.
            (3) Personnel of the Central Intelligence Agency (CIA) 
        charged with the responsibility of covert observation of 
        terrorists around the world are often put in harm's way during 
        their service to the United States.
            (4) Personnel of the Central Intelligence Agency have also 
        lost their lives while battling the evils of terrorism around 
        the world.
            (5) Employees of the Federal Bureau of Investigation (FBI) 
        and other Federal agencies charged with domestic protection of 
        the United States put their lives at risk on a daily basis for 
        the freedom and security of our Nation.
            (6) United States military personnel, CIA personnel, FBI 
        personnel, and other Federal agents in the service of the 
        United States are patriots of the highest order.
            (7) CIA officer Johnny Micheal Spann became the first 
        American to give his life for his country in the War on 
        Terrorism declared by President George W. Bush following the 
        terrorist attacks of September 11, 2001.
            (8) Johnny Micheal Spann left behind a wife and children 
        who are very proud of the heroic actions of their patriot 
        father.
            (9) Surviving dependents of members of the Armed Forces of 
        the United States who lose their lives as a result of terrorist 
        attacks or military operations abroad receive a $6,000 death 
        benefit, plus a small monthly benefit.
            (10) The current system of compensating spouses and 
        children of American patriots is inequitable and needs 
        improvement.
    (b) Designation of Johnny Micheal Spann Patriot Trusts.--Any 
charitable corporation, fund, foundation, or trust (or separate fund or 
account thereof) which otherwise meets all applicable requirements 
under law with respect to charitable entities and meets the 
requirements described in subsection (c) shall be eligible to 
characterize itself as a ``Johnny Micheal Spann Patriot Trust''.
    (c) Requirements for the Designation of Johnny Micheal Spann 
Patriot Trusts.--The requirements described in this subsection are as 
follows:
            (1) Not taking into account funds or donations reasonably 
        necessary to establish a trust, at least 85 percent of all 
        funds or donations (including any earnings on the investment of 
        such funds or donations) received or collected by any Johnny 
        Micheal Spann Patriot Trust must be distributed to (or, if 
        placed in a private foundation, held in trust for) surviving 
        spouses, children, or dependent parents, grandparents, or 
        siblings of 1 or more of the following:
                    (A) members of the Armed Forces of the United 
                States;
                    (B) personnel, including contractors, of elements 
                of the intelligence community, as defined in section 
                3(4) of the National Security Act of 1947;
                    (C) employees of the Federal Bureau of 
                Investigation; and
                    (D) officers, employees, or contract employees of 
                the United States Government,
        whose deaths occur in the line of duty and arise out of 
        terrorist attacks, military operations, intelligence 
        operations, or law enforcement operations or accidents 
        connected with activities occurring after September 11, 2001, 
        and related to domestic or foreign efforts to curb 
        international terrorism, including the Authorization for Use of 
        Military Force (Public Law 107-40; 115 Stat. 224).
            (2) Other than funds or donations reasonably necessary to 
        establish a trust, not more than 15 percent of all funds or 
        donations (or 15 percent of annual earnings on funds invested 
        in a private foundation) may be used for administrative 
        purposes.
            (3) No part of the net earnings of any Johnny Micheal Spann 
        Patriot Trust may inure to the benefit of any individual based 
        solely on the position of such individual as a shareholder, an 
        officer or employee of such Trust.
            (4) None of the activities of any Johnny Micheal Spann 
        Patriot Trust shall be conducted in a manner inconsistent with 
        any law that prohibits attempting to influence legislation.
            (5) No Johnny Micheal Spann Patriot Trust may participate 
        in or intervene in any political campaign on behalf of (or in 
        opposition to) any candidate for public office, including by 
        publication or distribution of statements.
            (6) Each Johnny Micheal Spann Patriot Trust shall comply 
        with the instructions and directions of the Director of Central 
        Intelligence, the Attorney General, or the Secretary of Defense 
        relating to the protection of intelligence sources and methods, 
        sensitive law enforcement information, or other sensitive 
        national security information, including methods for 
        confidentially disbursing funds.
            (7) Each Johnny Micheal Spann Patriot Trust that receives 
        annual contributions totaling more than $1,000,000 must be 
        audited annually by an independent certified public accounting 
        firm. Such audits shall be filed with the Internal Revenue 
        Service, and shall be open to public inspection, except that 
        the conduct, filing, and availability of the audit shall be 
        consistent with the protection of intelligence sources and 
        methods, of sensitive law enforcement information, and of other 
        sensitive national security information.
            (8) Each Johnny Micheal Spann Patriot Trust shall make 
        distributions to beneficiaries described in paragraph (1) at 
        least once every calendar year, beginning not later than 12 
        months after the formation of such Trust, and all funds and 
        donations received and earnings not placed in a private 
        foundation dedicated to such beneficiaries must be distributed 
        within 36 months after the end of the fiscal year in which such 
        funds, donations, and earnings are received.
            (9)(A) When determining the amount of a distribution to any 
        beneficiary described in paragraph (1), a Johnny Micheal Spann 
        Patriot Trust should take into account the amount of any 
        collateral source compensation that the beneficiary has 
        received or is entitled to receive as a result of the death of 
        an individual described in paragraph (1).
            (B) Collateral source compensation includes all 
        compensation from collateral sources, including life insurance, 
        pension funds, death benefit programs, and payments by Federal, 
        State, or local governments related to the death of an 
        individual described in paragraph (1).
    (d) Treatment of Johnny Micheal Spann Patriot Trusts.--Each Johnny 
Micheal Spann Patriot Trust shall refrain from conducting the 
activities described in clauses (i) and (ii) of section 301(20)(A) of 
the Federal Election Campaign Act of 1971 so that a general 
solicitation of funds by an individual described in paragraph (1) of 
section 323(e) of such Act will be permissible if such solicitation 
meets the requirements of paragraph (4)(A) of such section.
    (e) Notification of Trust Beneficiaries.--Notwithstanding any other 
provision of law, and in a manner consistent with the protection of 
intelligence sources and methods and sensitive law enforcement 
information, and other sensitive national security information, the 
Secretary of Defense, the Director of the Federal Bureau of 
Investigation, or the Director of Central Intelligence, or their 
designees, as applicable, may forward information received from an 
executor, administrator, or other legal representative of the estate of 
a decedent described in subparagraph (A), (B), (C), or (D) of 
subsection (c)(1), to a Johnny Micheal Spann Patriot Trust on how to 
contact individuals eligible for a distribution under subsection (c)(1) 
for the purpose of providing assistance from such Trust; provided that, 
neither forwarding nor failing to forward any information under this 
subsection shall create any cause of action against any Federal 
department, agency, officer, agent, or employee.
    (f) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Defense, in coordination with 
the Attorney General, the Director of the Federal Bureau of 
Investigation, and the Director of Central Intelligence, shall 
prescribe regulations to carry out this section.

                         TITLE VII--MANAGEMENT

SEC. 701. UNDER SECRETARY FOR MANAGEMENT.

    (a) In General.--The Secretary, acting through the Under Secretary 
for Management, shall be responsible for the management and 
administration of the Department, including the following:
            (1) The budget, appropriations, expenditures of funds, 
        accounting, and finance.
            (2) Procurement.
            (3) Human resources and personnel.
            (4) Information technology and communications systems.
            (5) Facilities, property, equipment, and other material 
        resources.
            (6) Security for personnel, information technology and 
        communications systems, facilities, property, equipment, and 
        other material resources.
            (7) Identification and tracking of performance measures 
        relating to the responsibilities of the Department.
            (8) Grants and other assistance management programs.
            (9) The transition and reorganization process, to ensure an 
        efficient and orderly transfer of functions and personnel to 
        the Department, including the development of a transition plan.
            (10) The conduct of internal audits and management analyses 
        of the programs and activities of the Department.
            (11) Any other management duties that the Secretary may 
        designate.
    (b) Immigration.--
            (1) In general.--In addition to the responsibilities 
        described in subsection (a), the Under Secretary for Management 
        shall be responsible for the following:
                    (A) Maintenance of all immigration statistical 
                information of the Bureau of Border Security and the 
                Bureau of Citizenship and Immigration Services. Such 
                statistical information shall include information and 
                statistics of the type contained in the publication 
                entitled ``Statistical Yearbook of the Immigration and 
                Naturalization Service'' prepared by the Immigration 
                and Naturalization Service (as in effect immediately 
                before the date on which the transfer of functions 
                specified under section 441 takes effect), including 
                region-by-region statistics on the aggregate number of 
                applications and petitions filed by an alien (or filed 
                on behalf of an alien) and denied by such bureau, and 
                the reasons for such denials, disaggregated by category 
                of denial and application or petition type.
                    (B) Establishment of standards of reliability and 
                validity for immigration statistics collected by such 
                bureaus.
            (2) Transfer of functions.--In accordance with title XV, 
        there shall be transferred to the Under Secretary for 
        Management all functions performed immediately before such 
        transfer occurs by the Statistics Branch of the Office of 
        Policy and Planning of the Immigration and Naturalization 
        Service with respect to the following programs:
                    (A) The Border Patrol program.
                    (B) The detention and removal program.
                    (C) The intelligence program.
                    (D) The investigations program.
                    (E) The inspections program.
                    (F) Adjudication of immigrant visa petitions.
                    (G) Adjudication of naturalization petitions.
                    (H) Adjudication of asylum and refugee 
                applications.
                    (I) Adjudications performed at service centers.
                    (J) All other adjudications performed by the 
                Immigration and Naturalization Service.

SEC. 702. CHIEF FINANCIAL OFFICER.

    The Chief Financial Officer shall report to the Secretary, or to 
another official of the Department, as the Secretary may direct.

SEC. 703. CHIEF INFORMATION OFFICER.

    The Chief Information Officer shall report to the Secretary, or to 
another official of the Department, as the Secretary may direct.

SEC. 704. CHIEF HUMAN CAPITAL OFFICER.

    The Chief Human Capital Officer shall report to the Secretary, or 
to another official of the Department, as the Secretary may direct and 
shall ensure that all employees of the Department are informed of their 
rights and remedies under chapters 12 and 23 of title 5, United States 
Code, by--
            (1) participating in the 2302(c) Certification Program of 
        the Office of Special Counsel;
            (2) achieving certification from the Office of Special 
        Counsel of the Department's compliance with section 2302(c) of 
        title 5, United States Code; and
            (3) informing Congress of such certification not later than 
        24 months after the date of enactment of this Act.

SEC. 705. ESTABLISHMENT OF OFFICER FOR CIVIL RIGHTS AND CIVIL 
              LIBERTIES.

    (a) In General.--The Secretary shall appoint in the Department an 
Officer for Civil Rights and Civil Liberties, who shall--
            (1) review and assess information alleging abuses of civil 
        rights, civil liberties, and racial and ethnic profiling by 
        employees and officials of the Department; and
            (2) make public through the Internet, radio, television, or 
        newspaper advertisements information on the responsibilities 
        and functions of, and how to contact, the Officer.
            (b) Report.--The Secretary shall submit to the President of 
        the Senate, the Speaker of the House of Representatives, and 
        the appropriate committees and subcommittees of Congress on an 
        annual basis a report on the implementation of this section, 
        including the use of funds appropriated to carry out this 
        section, and detailing any allegations of abuses described 
        under subsection (a)(1) and any actions taken by the Department 
        in response to such allegations.

SEC. 706. CONSOLIDATION AND CO-LOCATION OF OFFICES.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary shall develop and submit to Congress a plan for 
consolidating and co-locating--
            (1) any regional offices or field offices of agencies that 
        are transferred to the Department under this Act, if such 
        officers are located in the same municipality; and
            (2) portions of regional and field offices of other Federal 
        agencies, to the extent such offices perform functions that are 
        transferred to the Secretary under this Act.

TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
     UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           Subtitle A--Coordination with Non-Federal Entities

SEC. 801. OFFICE FOR STATE AND LOCAL GOVERNMENT COORDINATION.

    (a) Establishment.--There is established within the Office of the 
Secretary the Office for State and Local Government Coordination, to 
oversee and coordinate departmental programs for and relationships with 
State and local governments.
    (b) Responsibilities.--The Office established under subsection (a) 
shall--
            (1) coordinate the activities of the Department relating to 
        State and local government;
            (2) assess, and advocate for, the resources needed by State 
        and local government to implement the national strategy for 
        combating terrorism;
            (3) provide State and local government with regular 
        information, research, and technical support to assist local 
        efforts at securing the homeland; and
            (4) develop a process for receiving meaningful input from 
        State and local government to assist the development of the 
        national strategy for combating terrorism and other homeland 
        security activities.

                     Subtitle B--Inspector General

SEC. 811. AUTHORITY OF THE SECRETARY.

    (a) In General.--Notwithstanding the last two sentences of section 
3(a) of the Inspector General Act of 1978, the Inspector General shall 
be under the authority, direction, and control of the Secretary with 
respect to audits or investigations, or the issuance of subpoenas, that 
require access to sensitive information concerning--
            (1) intelligence, counterintelligence, or counterterrorism 
        matters;
            (2) ongoing criminal investigations or proceedings;
            (3) undercover operations;
            (4) the identity of confidential sources, including 
        protected witnesses;
            (5) other matters the disclosure of which would, in the 
        Secretary's judgment, constitute a serious threat to the 
        protection of any person or property authorized protection by 
        section 3056 of title 18, United States Code, section 202 of 
        title 3 of such Code, or any provision of the Presidential 
        Protection Assistance Act of 1976; or
            (6) other matters the disclosure of which would, in the 
        Secretary's judgment, constitute a serious threat to national 
        security.
    (b) Prohibition of Certain Investigations.--With respect to the 
information described in subsection (a), the Secretary may prohibit the 
Inspector General from carrying out or completing any audit or 
investigation, or from issuing any subpoena, after such Inspector 
General has decided to initiate, carry out, or complete such audit or 
investigation or to issue such subpoena, if the Secretary determines 
that such prohibition is necessary to prevent the disclosure of any 
information described in subsection (a), to preserve the national 
security, or to prevent a significant impairment to the interests of 
the United States.
    (c) Notification Required.--If the Secretary exercises any power 
under subsection (a) or (b), the Secretary shall notify the Inspector 
General of the Department in writing stating the reasons for such 
exercise. Within 30 days after receipt of any such notice, the 
Inspector General shall transmit a copy of such notice and a written 
response thereto that includes--
            (1) a statement as to whether the Inspector General agrees 
        or disagrees with such exercise; and
            (2) the reasons for any disagreement, to the President of 
        the Senate and the Speaker of the House of Representatives and 
        to appropriate committees and subcommittees of Congress.
    (d) Access to Information by Congress.--The exercise of authority 
by the Secretary described in subsection (b) should not be construed as 
limiting the right of Congress or any committee of Congress to access 
any information it seeks.
    (e) Oversight Responsibility--The Inspector General Act of 1978 (5 
U.S.C. App.) is amended by inserting after section 8I the following:

  ``special provisions concerning the department of homeland security

    ``Sec. 8J. Notwithstanding any other provision of law, in carrying 
out the duties and responsibilities specified in this Act, the 
Inspector General of the Department of Homeland Security shall have 
oversight responsibility for the internal investigations performed by 
the Office of Internal Affairs of the United States Customs Service and 
the Office of Inspections of the United States Secret Service. The head 
of each such office shall promptly report to the Inspector General the 
significant activities being carried out by such office.''.

SEC. 812. LAW ENFORCEMENT POWERS OF INSPECTOR GENERAL AGENTS.

    (a) In General.--Section 6 of the Inspector General Act of 1978 (5 
U.S.C. App.) is amended by adding at the end the following:
    ``(e)(1) In addition to the authority otherwise provided by this 
Act, each Inspector General appointed under section 3, any Assistant 
Inspector General for Investigations under such an Inspector General, 
and any special agent supervised by such an Assistant Inspector General 
may be authorized by the Attorney General to--
            ``(A) carry a firearm while engaged in official duties as 
        authorized under this Act or other statute, or as expressly 
        authorized by the Attorney General;
            ``(B) make an arrest without a warrant while engaged in 
        official duties as authorized under this Act or other statute, 
        or as expressly authorized by the Attorney General, for any 
        offense against the United States committed in the presence of 
        such Inspector General, Assistant Inspector General, or agent, 
        or for any felony cognizable under the laws of the United 
        States if such Inspector General, Assistant Inspector General, 
        or agent has reasonable grounds to believe that the person to 
        be arrested has committed or is committing such felony; and
            ``(C) seek and execute warrants for arrest, search of a 
        premises, or seizure of evidence issued under the authority of 
        the United States upon probable cause to believe that a 
        violation has been committed.
    ``(2) The Attorney General may authorize exercise of the powers 
under this subsection only upon an initial determination that--
            ``(A) the affected Office of Inspector General is 
        significantly hampered in the performance of responsibilities 
        established by this Act as a result of the lack of such powers;
            ``(B) available assistance from other law enforcement 
        agencies is insufficient to meet the need for such powers; and
            ``(C) adequate internal safeguards and management 
        procedures exist to ensure proper exercise of such powers.
    ``(3) The Inspector General offices of the Department of Commerce, 
Department of Education, Department of Energy, Department of Health and 
Human Services, Department of Homeland Security, Department of Housing 
and Urban Development, Department of the Interior, Department of 
Justice, Department of Labor, Department of State, Department of 
Transportation, Department of the Treasury, Department of Veterans 
Affairs, Agency for International Development, Environmental Protection 
Agency, Federal Deposit Insurance Corporation, Federal Emergency 
Management Agency, General Services Administration, National 
Aeronautics and Space Administration, Nuclear Regulatory Commission, 
Office of Personnel Management, Railroad Retirement Board, Small 
Business Administration, Social Security Administration, and the 
Tennessee Valley Authority are exempt from the requirement of paragraph 
(2) of an initial determination of eligibility by the Attorney General.
    ``(4) The Attorney General shall promulgate, and revise as 
appropriate, guidelines which shall govern the exercise of the law 
enforcement powers established under paragraph (1).
    ``(5)(A) Powers authorized for an Office of Inspector General under 
paragraph (1) may be rescinded or suspended upon a determination by the 
Attorney General that any of the requirements under paragraph (2) is no 
longer satisfied or that the exercise of authorized powers by that 
Office of Inspector General has not complied with the guidelines 
promulgated by the Attorney General under paragraph (4).
    ``(B) Powers authorized to be exercised by any individual under 
paragraph (1) may be rescinded or suspended with respect to that 
individual upon a determination by the Attorney General that such 
individual has not complied with guidelines promulgated by the Attorney 
General under paragraph (4).
    ``(6) A determination by the Attorney General under paragraph (2) 
or (5) shall not be reviewable in or by any court.
    ``(7) To ensure the proper exercise of the law enforcement powers 
authorized by this subsection, the Offices of Inspector General 
described under paragraph (3) shall, not later than 180 days after the 
date of enactment of this subsection, collectively enter into a 
memorandum of understanding to establish an external review process for 
ensuring that adequate internal safeguards and management procedures 
continue to exist within each Office and within any Office that later 
receives an authorization under paragraph (2). The review process shall 
be established in consultation with the Attorney General, who shall be 
provided with a copy of the memorandum of understanding that 
establishes the review process. Under the review process, the exercise 
of the law enforcement powers by each Office of Inspector General shall 
be reviewed periodically by another Office of Inspector General or by a 
committee of Inspectors General. The results of each review shall be 
communicated in writing to the applicable Inspector General and to the 
Attorney General.
    ``(8) No provision of this subsection shall limit the exercise of 
law enforcement powers established under any other statutory authority, 
including United States Marshals Service special deputation.''.
    (b) Promulgation of Initial Guidelines.--
            (1) Definition.--In this subsection, the term ``memoranda 
        of understanding'' means the agreements between the Department 
        of Justice and the Inspector General offices described under 
        section 6(e)(3) of the Inspector General Act of 1978 (5 U.S.C. 
        App) (as added by subsection (a) of this section) that--
                    (A) are in effect on the date of enactment of this 
                Act; and
                    (B) authorize such offices to exercise authority 
                that is the same or similar to the authority under 
                section 6(e)(1) of such Act.
            (2) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Attorney General shall promulgate 
        guidelines under section 6(e)(4) of the Inspector General Act 
        of 1978 (5 U.S.C. App) (as added by subsection (a) of this 
        section) applicable to the Inspector General offices described 
        under section 6(e)(3) of that Act.
            (3) Minimum requirements.--The guidelines promulgated under 
        this subsection shall include, at a minimum, the operational 
        and training requirements in the memoranda of understanding.
            (4) No lapse of authority.--The memoranda of understanding 
        in effect on the date of enactment of this Act shall remain in 
        effect until the guidelines promulgated under this subsection 
        take effect.
    (c) Effective Dates.--
            (1) In general.--Subsection (a) shall take effect 180 days 
        after the date of enactment of this Act.
            (2) Initial guidelines.--Subsection (b) shall take effect 
        on the date of enactment of this Act.

                Subtitle C--United States Secret Service

SEC. 821. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the 
Secretary the functions, personnel, assets, and obligations of the 
United States Secret Service, which shall be maintained as a distinct 
entity within the Department, including the functions of the Secretary 
of the Treasury relating thereto.

                        Subtitle D--Acquisitions

SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.

    (a) Authority.--During the 5-year period following the effective 
date of this Act, the Secretary may carry out a pilot program under 
which the Secretary may exercise the following authorities:
            (1) In general.--When the Secretary carries out basic, 
        applied, and advanced research and development projects, 
        including the expenditure of funds for such projects, the 
        Secretary may exercise the same authority (subject to the same 
        limitations and conditions) with respect to such research and 
        projects as the Secretary of Defense may exercise under section 
        2371 of title 10, United States Code (except for subsections 
        (b) and (f)), after making a determination that the use of a 
        contract, grant, or cooperative agreement for such project is 
        not feasible or appropriate. The annual report required under 
        subsection (b) of this section, as applied to the Secretary by 
        this paragraph, shall be submitted to the President of the 
        Senate and the Speaker of the House of Representatives.
            (2) Prototype projects.--The Secretary may, under the 
        authority of paragraph (1), carry out prototype projects in 
        accordance with the requirements and conditions provided for 
        carrying out prototype projects under section 845 of the 
        National Defense Authorization Act for Fiscal Year 1994 (Public 
        Law 103-160). In applying the authorities of that section 845, 
        subsection (c) of that section shall apply with respect to 
        prototype projects under this paragraph, and the Secretary 
        shall perform the functions of the Secretary of Defense under 
        subsection (d) thereof.
    (b) Report.--Not later than 2 years after the effective date of 
this Act, and annually thereafter, the Comptroller General shall report 
to the Committee on Government Reform of the House of Representatives 
and the Committee on Governmental Affairs of the Senate on--
            (1) whether use of the authorities described in subsection 
        (a) attracts nontraditional Government contractors and results 
        in the acquisition of needed technologies; and
            (2) if such authorities were to be made permanent, whether 
        additional safeguards are needed with respect to the use of 
        such authorities.
    (c) Procurement of Temporary and Intermittent Services.--The 
Secretary may--
            (1) procure the temporary or intermittent services of 
        experts or consultants (or organizations thereof) in accordance 
        with section 3109(b) of title 5, United States Code; and
            (2) whenever necessary due to an urgent homeland security 
        need, procure temporary (not to exceed 1 year) or intermittent 
        personal services, including the services of experts or 
        consultants (or organizations thereof), without regard to the 
        pay limitations of such section 3109.
    (d) Definition of Nontraditional Government Contractor.--In this 
section, the term ``nontraditional Government contractor'' has the same 
meaning as the term ``nontraditional defense contractor'' as defined in 
section 845(e) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note).

SEC. 832. PERSONAL SERVICES.

    The Secretary--
            (1) may procure the temporary or intermittent services of 
        experts or consultants (or organizations thereof) in accordance 
        with section 3109 of title 5, United States Code; and
            (2) may, whenever necessary due to an urgent homeland 
        security need, procure temporary (not to exceed 1 year) or 
        intermittent personal services, including the services of 
        experts or consultants (or organizations thereof), without 
        regard to the pay limitations of such section 3109.

SEC. 833. SPECIAL STREAMLINED ACQUISITION AUTHORITY.

    (a) Authority.--
            (1) In general.--The Secretary may use the authorities set 
        forth in this section with respect to any procurement made 
        during the period beginning on the effective date of this Act 
        and ending September 30, 2007, if the Secretary determines in 
        writing that the mission of the Department (as described in 
        section 101) would be seriously impaired without the use of 
        such authorities.
            (2) Delegation.--The authority to make the determination 
        described in paragraph (1) may not be delegated by the 
        Secretary to an officer of the Department who is not appointed 
        by the President with the advice and consent of the Senate.
            (3) Notification.--Not later than the date that is 7 days 
        after the date of any determination under paragraph (1), the 
        Secretary shall submit to the Committee on Government Reform of 
        the House of Representatives and the Committee on Governmental 
        Affairs of the Senate--
            (A) notification of such determination; and
            (B) the justification for such determination.
    (b) Increased Micro-Purchase Threshold For Certain Procurements.--
            (1) In general.--The Secretary may designate certain 
        employees of the Department to make procurements described in 
        subsection (a) for which in the administration of section 32 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 428) 
        the amount specified in subsections (c), (d), and (f) of such 
        section 32 shall be deemed to be $7,500.
            (2) Number of employees.--The number of employees 
        designated under paragraph (1) shall be--
                    (A) fewer than the number of employees of the 
                Department who are authorized to make purchases without 
                obtaining competitive quotations, pursuant to section 
                32(c) of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 428(c));
                    (B) sufficient to ensure the geographic dispersal 
                of the availability of the use of the procurement 
                authority under such paragraph at locations reasonably 
                considered to be potential terrorist targets; and
                    (C) sufficiently limited to allow for the careful 
                monitoring of employees designated under such 
                paragraph.
            (3) Review.--Procurements made under the authority of this 
        subsection shall be subject to review by a designated 
        supervisor on not less than a monthly basis. The supervisor 
        responsible for the review shall be responsible for no more 
        than 7 employees making procurements under this subsection.
    (c) Simplified Acquisition Procedures.--
            (1) In general.--With respect to a procurement described in 
        subsection (a), the Secretary may deem the simplified 
        acquisition threshold referred to in section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) to 
        be--
                    (A) in the case of a contract to be awarded and 
                performed, or purchase to be made, within the United 
                States, $200,000; and
                    (B) in the case of a contract to be awarded and 
                performed, or purchase to be made, outside of the 
                United States, $300,000.
            (2) Conforming amendments.--Section 18(c)(1) of the Office 
        of Federal Procurement Policy Act is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(H) the procurement is by the Secretary of Homeland 
        Security pursuant to the special procedures provided in section 
        833(c) of the Homeland Security Act of 2002.''.
    (d) Application of Certain Commercial Items Authorities.--
            (1) In general.--With respect to a procurement described in 
        subsection (a), the Secretary may deem any item or service to 
        be a commercial item for the purpose of Federal procurement 
        laws.
            (2) Limitation.--The $5,000,000 limitation provided in 
        section 31(a)(2) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 427(a)(2)) and section 303(g)(1)(B) of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 253(g)(1)(B)) shall be deemed to be $7,500,000 for 
        purposes of property or services under the authority of this 
        subsection.
            (3) Certain authority.--Authority under a provision of law 
        referred to in paragraph (2) that expires under section 4202(e) 
        of the Clinger-Cohen Act of 1996 (divisions D and E of Public 
        Law 104-106; 10 U.S.C. 2304 note) shall, notwithstanding such 
        section, continue to apply for a procurement described in 
        subsection (a).
    (e) Report.--Not later than 180 days after the end of fiscal year 
2005, the Comptroller General shall submit to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives a report on the use of the 
authorities provided in this section. The report shall contain the 
following:
            (1) An assessment of the extent to which property and 
        services acquired using authorities provided under this section 
        contributed to the capacity of the Federal workforce to 
        facilitate the mission of the Department as described in 
        section 101.
            (2) An assessment of the extent to which prices for 
        property and services acquired using authorities provided under 
        this section reflected the best value.
            (3) The number of employees designated by each executive 
        agency under subsection (b)(1).
            (4) An assessment of the extent to which the Department has 
        implemented subsections (b)(2) and (b)(3) to monitor the use of 
        procurement authority by employees designated under subsection 
        (b)(1).
            (5) Any recommendations of the Comptroller General for 
        improving the effectiveness of the implementation of the 
        provisions of this section.

SEC. 834. UNSOLICITED PROPOSALS.

    (a) Regulations Required.--Within 1 year of the date of enactment 
of this Act, the Federal Acquisition Regulation shall be revised to 
include regulations with regard to unsolicited proposals.
    (b) Content of Regulations.--The regulations prescribed under 
subsection (a) shall require that before initiating a comprehensive 
evaluation, an agency contact point shall consider, among other 
factors, that the proposal--
            (1) is not submitted in response to a previously published 
        agency requirement; and
            (2) contains technical and cost information for evaluation 
        and overall scientific, technical or socioeconomic merit, or 
        cost-related or price-related factors.

SEC. 835. PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRIATES.

    (a) In General.--The Secretary may not enter into any contract with 
a foreign incorporated entity which is treated as an inverted domestic 
corporation under subsection (b).
    (b) Inverted Domestic Corporation.--For purposes of this section, a 
foreign incorporated entity shall be treated as an inverted domestic 
corporation if, pursuant to a plan (or a series of related 
transactions)--
            (1) the entity completes after the date of enactment of 
        this Act, the direct or indirect acquisition of substantially 
        all of the properties held directly or indirectly by a domestic 
        corporation or substantially all of the properties constituting 
        a trade or business of a domestic partnership;
            (2) after the acquisition at least 80 percent of the stock 
        (by vote or value) of the entity is held--
                    (A) in the case of an acquisition with respect to a 
                domestic corporation, by former shareholders of the 
                domestic corporation by reason of holding stock in the 
                domestic corporation; or
                    (B) in the case of an acquisition with respect to a 
                domestic partnership, by former partners of the 
                domestic partnership by reason of holding a capital or 
                profits interest in the domestic partnership; and
            (3) the expanded affiliated group which after the 
        acquisition includes the entity does not have substantial 
        business activities in the foreign country in which or under 
        the law of which the entity is created or organized when 
        compared to the total business activities of such expanded 
        affiliated group.
    (c) Definitions and Special Rules.--
            (1) Rules for application of subsection (b).--In applying 
        subsection (b) for purposes of subsection (a), the following 
        rules shall apply:
                    (A) Certain stock disregarded.--There shall not be 
                taken into account in determining ownership for 
                purposes of subsection (b)(2)--
                            (i) stock held by members of the expanded 
                        affiliated group which includes the foreign 
                        incorporated entity; or
                            (ii) stock of such entity which is sold in 
                        a public offering related to the acquisition 
                        described in subsection (b)(1).
                    (B) Plan deemed in certain cases.--If a foreign 
                incorporated entity acquires directly or indirectly 
                substantially all of the properties of a domestic 
                corporation or partnership during the 4-year period 
                beginning on the date which is after the date of 
                enactment of this Act and which is 2 years before the 
                ownership requirements of subsection (b)(2) are met, 
                such actions shall be treated as pursuant to a plan.
                    (C) Certain transfers disregarded.--The transfer of 
                properties or liabilities (including by contribution or 
                distribution) shall be disregarded if such transfers 
                are part of a plan a principal purpose of which is to 
                avoid the purposes of this section.
                    (D) Special rule for related partnerships.--For 
                purposes of applying subsection (b) to the acquisition 
                of a domestic partnership, except as provided in 
                regulations, all domestic partnerships which are under 
                common control (within the meaning of section 482 of 
                the Internal Revenue Code of 1986) shall be treated as 
                I partnership.
                    (E) Treatment of certain rights.--The Secretary 
                shall prescribe such regulations as may be necessary 
                to--
                            (i) treat warrants, options, contracts to 
                        acquire stock, convertible debt instruments, 
                        and other similar interests as stock; and
                            (ii) treat stock as not stock.
            (2) Expanded affiliated group.--The term ``expanded 
        affiliated group'' means an affiliated group as defined in 
        section 1504(a) of the Internal Revenue Code of 1986 (without 
        regard to section 1504(b) of such Code), except that section 
        1504 of such Code shall be applied by substituting ``more than 
        50 percent'' for ``at least 80 percent'' each place it appears.
            (3) Foreign incorporated entity.--The term ``foreign 
        incorporated entity'' means any entity which is, or but for 
        subsection (b) would be, treated as a foreign corporation for 
        purposes of the Internal Revenue Code of 1986.
            (4) Other definitions.--The terms ``person'', ``domestic'', 
        and ``foreign'' have the meanings given such terms by 
        paragraphs (1), (4), and (5) of section 7701 (a) of the 
        Internal Revenue Code of 1986, respectively.
    (d) Waivers.--The Secretary shall waive subsection (a) with respect 
to any specific contract if the Secretary determines that the waiver is 
required in the interest of homeland security, or to prevent the loss 
of any jobs in the United States or prevent the Government from 
incurring any additional costs that otherwise would not occur.

                 Subtitle E--Human Resources Management

SEC. 841. ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

    (a) Authority.--
            (1) Sense of congress.--It is the sense of Congress that--
                    (A) it is extremely important that employees of the 
                Department be allowed to participate in a meaningful 
                way in the creation of any human resources management 
                system affecting them;
                    (B) such employees have the most direct knowledge 
                of the demands of their jobs and have a direct interest 
                in ensuring that their human resources management 
                system is conducive to achieving optimal operational 
                efficiencies;
                    (C) the 21st century human resources management 
                system envisioned for the Department should be one that 
                benefits from the input of its employees; and
                    (D) this collaborative effort will help secure our 
                homeland.
            (2) In general.--Subpart I of part III of title 5, United 
        States Code, is amended by adding at the end the following:

             ``CHAPTER 97--DEPARTMENT OF HOMELAND SECURITY

``Sec.
``9701. Establishment of human resources management system.
``Sec. 9701. Establishment of human resources management system
    ``(a) In General.--Notwithstanding any other provision of this 
part, the Secretary of Homeland Security may, in regulations prescribed 
jointly with the Director of the Office of Personnel Management, 
establish, and from time to time adjust, a human resources management 
system for some or all of the organizational units of the Department of 
Homeland Security.
    ``(b) System Requirements.--Any system established under subsection 
(a) shall--
            ``(1) be flexible;
            ``(2) be contemporary;
            ``(3) not waive, modify, or otherwise affect--
                    ``(A) the public employment principles of merit and 
                fitness set forth in section 2301, including the 
                principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other 
                nonmerit considerations, equal pay for equal work, and 
                protection of employees against reprisal for 
                whistleblowing;
                    ``(B) any provision of section 2302, relating to 
                prohibited personnel practices;
                    ``(C)(i) any provision of law referred to in 
                section 2302(b)(1), (8), and (9); or
                    ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b)(1), 
                (8), and (9) by--
                            ``(I) providing for equal employment 
                        opportunity through affirmative action; or
                            ``(II) providing any right or remedy 
                        available to any employee or applicant for 
                        employment in the civil service;
                    ``(D) any other provision of this part (as 
                described in subsection (c)); or
                    ``(E) any rule or regulation prescribed under any 
                provision of law referred to in any of the preceding 
                subparagraphs of this paragraph;
            ``(4) ensure that employees may organize, bargain 
        collectively, and participate through labor organizations of 
        their own choosing in decisions which affect them, subject to 
        any exclusion from coverage or limitation on negotiability 
        established by law; and
            ``(5) permit the use of a category rating system for 
        evaluating applicants for positions in the competitive service.
    ``(c) Other Nonwaivable Provisions.--The other provisions of this 
part as referred to in subsection (b)(3)(D), are (to the extent not 
otherwise specified in subparagraph (A), (B), (C), or (D) of subsection 
(b)(3))--
            ``(1) subparts A, B, E, G, and H of this part; and
            ``(2) chapters 41, 45, 47, 55, 57, 59, 72, 73, and 79, and 
        this chapter.
    ``(d) Limitations Relating to Pay.--Nothing in this section shall 
constitute authority--
            ``(1) to modify the pay of any employee who serves in--
                    ``(A) an Executive Schedule position under 
                subchapter II of chapter 53 of title 5, United States 
                Code; or
                    ``(B) a position for which the rate of basic pay is 
                fixed in statute by reference to a section or level 
                under subchapter II of chapter 53 of such title 5;
            ``(2) to fix pay for any employee or position at an annual 
        rate greater than the maximum amount of cash compensation 
        allowable under section 5307 of such title 5 in a year; or
            ``(3) to exempt any employee from the application of such 
        section 5307.
    ``(e) Provisions to Ensure Collaboration With Employee 
Representatives.--
            ``(1) In general.--In order to ensure that the authority of 
        this section is exercised in collaboration with, and in a 
        manner that ensures the participation of employee 
        representatives in the planning, development, and 
        implementation of any human resources management system or 
        adjustments to such system under this section, the Secretary of 
        Homeland Security and the Director of the Office of Personnel 
        Management shall provide for the following:
                    ``(A) Notice of proposal.--The Secretary and the 
                Director shall, with respect to any proposed system or 
                adjustment--
                            ``(i) provide to each employee 
                        representative representing any employees who 
                        might be affected, a written description of the 
                        proposed system or adjustment (including the 
                        reasons why it is considered necessary);
                            ``(ii) give each representative 30 calendar 
                        days (unless extraordinary circumstances 
                        require earlier action) to review and make 
                        recommendations with respect to the proposal; 
                        and
                            ``(iii) give any recommendations received 
                        from any such representatives under clause (ii) 
                        full and fair consideration in deciding whether 
                        or how to proceed with the proposal.
                    ``(B) Pre-implementation congressional 
                notification, consultation, and mediation.--Following 
                receipt of recommendations, if any, from employee 
                representatives with respect to a proposal described in 
                subparagraph (A), the Secretary and the Director shall 
                accept such modifications to the proposal in response 
                to the recommendations as they determine advisable and 
                shall, with respect to any parts of the proposal as to 
                which they have not accepted the recommendations--
                            ``(i) notify Congress of those parts of the 
                        proposal, together with the recommendations of 
                        employee representatives;
                            ``(ii) meet and confer for not less than 30 
                        calendar days with any representatives who have 
                        made recommendations, in order to attempt to 
                        reach agreement on whether or how to proceed 
                        with those parts of the proposal; and
                            ``(iii) at the Secretary's option, or if 
                        requested by a majority of the employee 
                        representatives who have made recommendations, 
                        use the services of the Federal Mediation and 
                        Conciliation Service during such meet and 
                        confer period to facilitate the process of 
                        attempting to reach agreement.
                    ``(C) Implementation.--
                            ``(i) Any part of the proposal as to which 
                        the representatives do not make a 
                        recommendation, or as to which their 
                        recommendations are accepted by the Secretary 
                        and the Director, may be implemented 
                        immediately.
                            ``(ii) With respect to any parts of the 
                        proposal as to which recommendations have been 
                        made but not accepted by the Secretary and the 
                        Director, at any time after 30 calendar days 
                        have elapsed since the initiation of the 
                        congressional notification, consultation, and 
                        mediation procedures set forth in subparagraph 
                        (B), if the Secretary determines, in the 
                        Secretary's sole and unreviewable discretion, 
                        that further consultation and mediation is 
                        unlikely to produce agreement, the Secretary 
                        may implement any or all of such parts, 
                        including any modifications made in response to 
                        the recommendations as the Secretary determines 
                        advisable.
                            ``(iii) The Secretary shall promptly notify 
                        Congress of the implementation of any part of 
                        the proposal and shall furnish with such notice 
                        an explanation of the proposal, any changes 
                        made to the proposal as a result of 
                        recommendations from employee representatives, 
                        and of the reasons why implementation is 
                        appropriate under this subparagraph.
                    ``(D) Continuing collaboration.--If a proposal 
                described in subparagraph (A) is implemented, the 
                Secretary and the Director shall--
                            ``(i) develop a method for each employee 
                        representative to participate in any further 
                        planning or development which might become 
                        necessary; and
                            ``(ii) give each employee representative 
                        adequate access to information to make that 
                        participation productive.
            ``(2) Procedures.--Any procedures necessary to carry out 
        this subsection shall be established by the Secretary and the 
        Director jointly as internal rules of departmental procedure 
        which shall not be subject to review. Such procedures shall 
        include measures to ensure--
                    ``(A) in the case of employees within a unit with 
                respect to which a labor organization is accorded 
                exclusive recognition, representation by individuals 
                designated or from among individuals nominated by such 
                organization;
                    ``(B) in the case of any employees who are not 
                within such a unit, representation by any appropriate 
                organization which represents a substantial percentage 
                of those employees or, if none, in such other manner as 
                may be appropriate, consistent with the purposes of the 
                subsection;
                    ``(C) the fair and expeditious handling of the 
                consultation and mediation process described in 
                subparagraph (B) of paragraph (1), including procedures 
                by which, if the number of employee representatives 
                providing recommendations exceeds 5, such 
                representatives select a committee or other unified 
                representative with which the Secretary and Director 
                may meet and confer; and
                    ``(D) the selection of representatives in a manner 
                consistent with the relative number of employees 
                represented by the organizations or other 
                representatives involved.
    ``(f) Provisions Relating to Appellate Procedures.--
            (1) Sense of congress.--It is the sense of Congress that--
                    ``(A) employees of the Department are entitled to 
                fair treatment in any appeals that they bring in 
                decisions relating to their employment; and
                    ``(B) in prescribing regulations for any such 
                appeals procedures, the Secretary and the Director of 
                the Office of Personnel Management--
                            ``(i) should ensure that employees of the 
                        Department are afforded the protections of due 
                        process; and
                            ``(ii) toward that end, should be required 
                        to consult with the Merit Systems Protection 
                        Board before issuing any such regulations.
            ``(2) Requirements.--Any regulations under this section 
        which relate to any matters within the purview of chapter 77--
                    ``(A) shall be issued only after consultation with 
                the Merit Systems Protection Board;
                    ``(B) shall ensure the availability of procedures 
                which shall--
                            ``(i) be consistent with requirements of 
                        due process; and
                            ``(ii) provide, to the maximum extent 
                        practicable, for the expeditious handling of 
                        any matters involving the Department; and
                    ``(C) shall modify procedures under chapter 77 only 
                insofar as such modifications are designed to further 
                the fair, efficient, and expeditious resolution of 
                matters involving the employees of the Department.
    ``(g) Provisions Relating to Labor-Management Relations.--Nothing 
in this section shall be construed as conferring authority on the 
Secretary of Homeland Security to modify any of the provisions of 
section 842 of the Homeland Security Act of 2002.
    ``(h) Sunset Provision.--Effective 5 years after the conclusion of 
the transition period defined under section 1501 of the Homeland 
Security Act of 2002, all authority to issue regulations under this 
section (including regulations which would modify, supersede, or 
terminate any regulations previously issued under this section) shall 
cease to be available.''.
            (3) Technical and conforming amendment.--The table of 
        chapters for part III of title 5, United States Code, is 
        amended by adding at the end of the following:

``97. Department of Homeland Security.......................    9701''.
    (b) Effect on Personnel.--
            (1) Nonseparation or nonreduction in grade or compensation 
        of full-time personnel and part-time personnel holding 
        permanent positions.--Except as otherwise provided in this Act, 
        the transfer under this Act of full-time personnel (except 
        special Government employees) and part-time personnel holding 
        permanent positions shall not cause any such employee to be 
        separated or reduced in grade or compensation for 1 year after 
        the date of transfer to the Department.
            (2) Positions compensated in accordance with executive 
        schedule.--Any person who, on the day preceding such person's 
        date of transfer pursuant to this Act, held a position 
        compensated in accordance with the Executive Schedule 
        prescribed in chapter 53 of title 5, United States Code, and 
        who, without a break in service, is appointed in the Department 
        to a position having duties comparable to the duties performed 
        immediately preceding such appointment shall continue to be 
        compensated in such new position at not less than the rate 
        provided for such position, for the duration of the service of 
        such person in such new position.
            (3) Coordination rule.--Any exercise of authority under 
        chapter 97 of title 5, United States Code (as amended by 
        subsection (a)), including under any system established under 
        such chapter, shall be in conformance with the requirements of 
        this subsection.

SEC. 842. LABOR-MANAGEMENT RELATIONS.

    (a) Limitation on Exclusionary Authority.--
            (1) In general.--No agency or subdivision of an agency 
        which is transferred to the Department pursuant to this Act 
        shall be excluded from the coverage of chapter 71 of title 5, 
        United States Code, as a result of any order issued under 
        section 7103(b)(1) of such title 5 after June 18, 2002, 
        unless--
                    (A) the mission and responsibilities of the agency 
                (or subdivision) materially change; and
                    (B) a majority of the employees within such agency 
                (or subdivision) have as their primary duty 
                intelligence, counterintelligence, or investigative 
                work directly related to terrorism investigation.
            (2) Exclusions allowable.--Nothing in paragraph (1) shall 
        affect the effectiveness of any order to the extent that such 
        order excludes any portion of an agency or subdivision of an 
        agency as to which--
                    (A) recognition as an appropriate unit has never 
                been conferred for purposes of chapter 71 of such title 
                5; or
                    (B) any such recognition has been revoked or 
                otherwise terminated as a result of a determination 
                under subsection (b)(1).
    (b) Provisions Relating to Bargaining Units.--
            (1) Limitation relating to appropriate units.--Each unit 
        which is recognized as an appropriate unit for purposes of 
        chapter 71 of title 5, United States Code, as of the day before 
        the effective date of this Act (and any subdivision of any such 
        unit) shall, if such unit (or subdivision) is transferred to 
        the Department pursuant to this Act, continue to be so 
        recognized for such purposes, unless--
                    (A) the mission and responsibilities of such unit 
                (or subdivision) materially change; and
                    (B) a majority of the employees within such unit 
                (or subdivision) have as their primary duty 
                intelligence, counterintelligence, or investigative 
                work directly related to terrorism investigation.
            (2) Limitation relating to positions or employees.--No 
        position or employee within a unit (or subdivision of a unit) 
        as to which continued recognition is given in accordance with 
        paragraph (1) shall be excluded from such unit (or 
        subdivision), for purposes of chapter 71 of such title 5, 
        unless the primary job duty of such position or employee--
                    (A) materially changes; and
                    (B) consists of intelligence, counterintelligence, 
                or investigative work directly related to terrorism 
                investigation.
        In the case of any positions within a unit (or subdivision) 
        which are first established on or after the effective date of 
        this Act and any employees first appointed on or after such 
        date, the preceding sentence shall be applied disregarding 
        subparagraph (A).
    (c) Waiver.--If the President determines that the application of 
subsections (a), (b), and (d) would have a substantial adverse impact 
on the ability of the Department to protect homeland security, the 
President may waive the application of such subsections 10 days after 
the President has submitted to Congress a written explanation of the 
reasons for such determination.
    (d) Coordination Rule.--No other provision of this Act or of any 
amendment made by this Act may be construed or applied in a manner so 
as to limit, supersede, or otherwise affect the provisions of this 
section, except to the extent that it does so by specific reference to 
this section.
    (e) Rule of construction.--Nothing in section 9701(e) of title 5, 
United States Code, shall be considered to apply with respect to any 
agency or subdivision of any agency, which is excluded from the 
coverage of chapter 71 of title 5, United States Code, by virtue of an 
order issued in accordance with section 7103(b) of such title and the 
preceding provisions of this section (as applicable), or to any 
employees of any such agency or subdivision or to any individual or 
entity representing any such employees or any representatives thereof.

         Subtitle F--Federal Emergency Procurement Flexibility

SEC. 851. DEFINITION.

    In this subtitle, the term ``executive agency'' has the meaning 
given that term under section 4(1) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(1)).

SEC. 852. PROCUREMENTS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM 
              OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

    The authorities provided in this subtitle apply to any procurement 
of property or services by or for an executive agency that, as 
determined by the head of the executive agency, are to be used to 
facilitate defense against or recovery from terrorism or nuclear, 
biological, chemical, or radiological attack, but only if a 
solicitation of offers for the procurement is issued during the 1-year 
period beginning on the date of the enactment of this Act.

SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR PROCUREMENTS 
              IN SUPPORT OF HUMANITARIAN OR PEACEKEEPING OPERATIONS OR 
              CONTINGENCY OPERATIONS.

    (a) Temporary Threshold Amounts.--For a procurement referred to in 
section 852 that is carried out in support of a humanitarian or 
peacekeeping operation or a contingency operation, the simplified 
acquisition threshold definitions shall be applied as if the amount 
determined under the exception provided for such an operation in those 
definitions were--
            (1) in the case of a contract to be awarded and performed, 
        or purchase to be made, inside the United States, $200,000; or
            (2) in the case of a contract to be awarded and performed, 
        or purchase to be made, outside the United States, $300,000.
    (b) Simplified Acquisition Threshold Definitions.--In this section, 
the term ``simplified acquisition threshold definitions'' means the 
following:
            (1) Section 4(11) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(11)).
            (2) Section 309(d) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 259(d)).
            (3) Section 2302(7) of title 10, United States Code.
    (c) Small Business Reserve.--For a procurement carried out pursuant 
to subsection (a), section 15(j) of the Small Business Act (15 U.S.C. 
644(j)) shall be applied as if the maximum anticipated value identified 
therein is equal to the amounts referred to in subsection (a).

SEC. 854. INCREASED MICRO-PURCHASE THRESHOLD FOR CERTAIN PROCUREMENTS.

    In the administration of section 32 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428) with respect to a procurement 
referred to in section 852, the amount specified in subsections (c), 
(d), and (f) of such section 32 shall be deemed to be $7,500.

SEC. 855. APPLICATION OF CERTAIN COMMERCIAL ITEMS AUTHORITIES TO 
              CERTAIN PROCUREMENTS.

    (a) Authority.--
            (1) In general.--The head of an executive agency may apply 
        the provisions of law listed in paragraph (2) to a procurement 
        referred to in section 852 without regard to whether the 
        property or services are commercial items.
            (2) Commercial item laws.--The provisions of law referred 
        to in paragraph (1) are as follows:
                    (A) Sections 31 and 34 of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 427, 430).
                    (B) Section 2304(g) of title 10, United States 
                Code.
                    (C) Section 303(g) of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253(g)).
    (b) Inapplicability of Limitation on Use of Simplified Acquisition 
Procedures.--
            (1) In general.--The $5,000,000 limitation provided in 
        section 31(a)(2) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 427(a)(2)), section 2304(g)(1)(B) of title 10, 
        United States Code, and section 303(g)(1)(B) of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 
        253(g)(1)(B)) shall not apply to purchases of property or 
        services to which any of the provisions of law referred to in 
        subsection (a) are applied under the authority of this section.
            (2) OMB guidance.--The Director of the Office of Management 
        and Budget shall issue guidance and procedures for the use of 
        simplified acquisition procedures for a purchase of property or 
        services in excess of $5,000,000 under the authority of this 
        section.
    (c) Continuation of Authority for Simplified Purchase Procedures.--
Authority under a provision of law referred to in subsection (a)(2) 
that expires under section 4202(e) of the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106; 10 U.S.C. 2304 note) shall, 
notwithstanding such section, continue to apply for use by the head of 
an executive agency as provided in subsections (a) and (b).

SEC. 856. USE OF STREAMLINED PROCEDURES.

    (a) Required Use.--The head of an executive agency shall, when 
appropriate, use streamlined acquisition authorities and procedures 
authorized by law for a procurement referred to in section 852, 
including authorities and procedures that are provided under the 
following provisions of law:
            (1) Federal property and administrative services act of 
        1949.--In title III of the Federal Property and Administrative 
        Services Act of 1949:
                    (A) Paragraphs (1), (2), (6), and (7) of subsection 
                (c) of section 303 (41 U.S.C. 253), relating to use of 
                procedures other than competitive procedures under 
                certain circumstances (subject to subsection (e) of 
                such section).
                    (B) Section 303J (41 U.S.C. 253j), relating to 
                orders under task and delivery order contracts.
            (2) Title 10, united states code.--In chapter 137 of title 
        10, United States Code:
                    (A) Paragraphs (1), (2), (6), and (7) of subsection 
                (c) of section 2304, relating to use of procedures 
                other than competitive procedures under certain 
                circumstances (subject to subsection (e) of such 
                section).
                    (B) Section 2304c, relating to orders under task 
                and delivery order contracts.
            (3) Office of federal procurement policy act.--Paragraphs 
        (1)(B), (1)(D), and (2) of section 18(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 416(c)), relating to 
        inapplicability of a requirement for procurement notice.
    (b) Waiver of Certain Small Business Threshold Requirements.--
Subclause (II) of section 8(a)(1)(D)(i) of the Small Business Act (15 
U.S.C. 637(a)(1)(D)(i)) and clause (ii) of section 31(b)(2)(A) of such 
Act (15 U.S.C. 657a(b)(2)(A)) shall not apply in the use of streamlined 
acquisition authorities and procedures referred to in paragraphs (1)(A) 
and (2)(A) of subsection (a) for a procurement referred to in section 
852.

SEC. 857. REVIEW AND REPORT BY COMPTROLLER GENERAL.

    (a) Requirements.--Not later than March 31, 2004, the Comptroller 
General shall--
            (1) complete a review of the extent to which procurements 
        of property and services have been made in accordance with this 
        subtitle; and
            (2) submit a report on the results of the review to the 
        Committee on Governmental Affairs of the Senate and the 
        Committee on Government Reform of the House of Representatives.
    (b) Content of Report.--The report under subsection (a)(2) shall 
include the following matters:
            (1) Assessment.--The Comptroller General's assessment of--
                    (A) the extent to which property and services 
                procured in accordance with this title have contributed 
                to the capacity of the workforce of Federal Government 
                employees within each executive agency to carry out the 
                mission of the executive agency; and
                    (B) the extent to which Federal Government 
                employees have been trained on the use of technology.
            (2) Recommendations.--Any recommendations of the 
        Comptroller General resulting from the assessment described in 
        paragraph (1).
    (c) Consultation.--In preparing for the review under subsection 
(a)(1), the Comptroller shall consult with the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives on the specific issues and 
topics to be reviewed. The extent of coverage needed in areas such as 
technology integration, employee training, and human capital 
management, as well as the data requirements of the study, shall be 
included as part of the consultation.

SEC. 858. IDENTIFICATION OF NEW ENTRANTS INTO THE FEDERAL MARKETPLACE.

    The head of each executive agency shall conduct market research on 
an ongoing basis to identify effectively the capabilities, including 
the capabilities of small businesses and new entrants into Federal 
contracting, that are available in the marketplace for meeting the 
requirements of the executive agency in furtherance of defense against 
or recovery from terrorism or nuclear, biological, chemical, or 
radiological attack. The head of the executive agency shall, to the 
maximum extent practicable, take advantage of commercially available 
market research methods, including use of commercial databases, to 
carry out the research.

Subtitle G--Support Anti-terrorism by Fostering Effective Technologies 
                              Act of 2002

SEC. 861. SHORT TITLE.

    This subtitle may be cited as the ``Support Anti-terrorism by 
Fostering Effective Technologies Act of 2002'' or the ``SAFETY Act''.

SEC. 862. ADMINISTRATION.

    (a) In General.--The Secretary shall be responsible for the 
administration of this subtitle.
    (b) Designation of Qualified Anti-Terrorism Technologies.--The 
Secretary may designate anti-terrorism technologies that qualify for 
protection under the system of risk management set forth in this 
subtitle in accordance with criteria that shall include, but not be 
limited to, the following:
            (1) Prior United States government use or demonstrated 
        substantial utility and effectiveness.
            (2) Availability of the technology for immediate deployment 
        in public and private settings.
            (3) Existence of extraordinarily large or extraordinarily 
        unquantifiable potential third party liability risk exposure to 
        the Seller or other provider of such anti-terrorism technology.
            (4) Substantial likelihood that such anti-terrorism 
        technology will not be deployed unless protections under the 
        system of risk management provided under this subtitle are 
        extended.
            (5) Magnitude of risk exposure to the public if such anti-
        terrorism technology is not deployed.
            (6) Evaluation of all scientific studies that can be 
        feasibly conducted in order to assess the capability of the 
        technology to substantially reduce risks of harm.
            (7) Anti-terrorism technology that would be effective in 
        facilitating the defense against acts of terrorism, including 
        technologies that prevent, defeat or respond to such acts.
    (c) Regulations.--The Secretary may issue such regulations, after 
notice and comment in accordance with section 553 of title 5, United 
States, Code, as may be necessary to carry out this subtitle.

SEC. 863. LITIGATION MANAGEMENT.

    (a) Federal Cause of Action.--
            (1) In general.--There shall exist a Federal cause of 
        action for claims arising out of, relating to, or resulting 
        from an act of terrorism when qualified anti-terrorism 
        technologies have been deployed in defense against or response 
        or recovery from such act and such claims result or may result 
        in loss to the Seller. The substantive law for decision in any 
        such action shall be derived from the law, including choice of 
        law principles, of the State in which such acts of terrorism 
        occurred, unless such law is inconsistent with or preempted by 
        Federal law. Such Federal cause of action shall be brought only 
        for claims for injuries that are proximately caused by sellers 
        that provide qualified anti-terrorism technology to Federal and 
        non-Federal government customers.
            (2) Jurisdiction.--Such appropriate district court of the 
        United States shall have original and exclusive jurisdiction 
        over all actions for any claim for loss of property, personal 
        injury, or death arising out of, relating to, or resulting from 
        an act of terrorism when qualified anti-terrorism technologies 
        have been deployed in defense against or response or recovery 
        from such act and such claims result or may result in loss to 
        the Seller.
    (b) Special Rules.--In an action brought under this section for 
damages the following provisions apply:
            (1) Punitive damages.--No punitive damages intended to 
        punish or deter, exemplary damages, or other damages not 
        intended to compensate a plaintiff for actual losses may be 
        awarded, nor shall any party be liable for interest prior to 
        the judgment.
            (2) Noneconomic damages.--
                    (A) In general.--Noneconomic damages may be awarded 
                against a defendant only in an amount directly 
                proportional to the percentage of responsibility of 
                such defendant for the harm to the plaintiff, and no 
                plaintiff may recover noneconomic damages unless the 
                plaintiff suffered physical harm.
                    (B) Definition.--For purposes of subparagraph (A), 
                the term ``noneconomic damages'' means damages for 
                losses for physical and emotional pain, suffering, 
                inconvenience, physical impairment, mental anguish, 
                disfigurement, loss of enjoyment of life, loss of 
                society and companionship, loss of consortium, hedonic 
                damages, injury to reputation, and any other 
                nonpecuniary losses.
    (c) Collateral Sources.--Any recovery by a plaintiff in an action 
under this section shall be reduced by the amount of collateral source 
compensation, if any, that the plaintiff has received or is entitled to 
receive as a result of such acts of terrorism that result or may result 
in loss to the Seller.
    (d) Government Contractor Defense.--
            (1) In general.--Should a product liability or other 
        lawsuit be filed for claims arising out of, relating to, or 
        resulting from an act of terrorism when qualified anti-
        terrorism technologies approved by the Secretary, as provided 
        in paragraphs (2) and (3) of this subsection, have been 
        deployed in defense against or response or recovery from such 
        act and such claims result or may result in loss to the Seller, 
        there shall be a rebuttable presumption that the government 
        contractor defense applies in such lawsuit. This presumption 
        shall only be overcome by evidence showing that the Seller 
        acted fraudulently or with willful misconduct in submitting 
        information to the Secretary during the course of the 
        Secretary's consideration of such technology under this 
        subsection. This presumption of the government contractor 
        defense shall apply regardless of whether the claim against the 
        Seller arises from a sale of the product to Federal Government 
        or non-Federal Government customers.
            (2) Exclusive responsibility.--The Secretary will be 
        exclusively responsible for the review and approval of anti-
        terrorism technology for purposes of establishing a government 
        contractor defense in any product liability lawsuit for claims 
        arising out of, relating to, or resulting from an act of 
        terrorism when qualified anti-terrorism technologies approved 
        by the Secretary, as provided in this paragraph and paragraph 
        (3), have been deployed in defense against or response or 
        recovery from such act and such claims result or may result in 
        loss to the Seller. Upon the Seller's submission to the 
        Secretary for approval of anti-terrorism technology, the 
        Secretary will conduct a comprehensive review of the design of 
        such technology and determine whether it will perform as 
        intended, conforms to the Seller's specifications, and is safe 
        for use as intended. The Seller will conduct safety and hazard 
        analyses on such technology and will supply the Secretary with 
        all such information.
            (3) Certificate.--For anti-terrorism technology reviewed 
        and approved by the Secretary, the Secretary will issue a 
        certificate of conformance to the Seller and place the anti-
        terrorism technology on an Approved Product List for Homeland 
        Security.
    (e) Exclusion.--Nothing in this section shall in any way limit the 
ability of any person to seek any form of recovery from any person, 
government, or other entity that--
            (1) attempts to commit, knowingly participates in, aids and 
        abets, or commits any act of terrorism, or any criminal act 
        related to or resulting from such act of terrorism; or
            (2) participates in a conspiracy to commit any such act of 
        terrorism or any such criminal act.

SEC. 864. RISK MANAGEMENT.

    (a) In General.--
            (1) Liability insurance required.--Any person or entity 
        that sells or otherwise provides a qualified anti-terrorism 
        technology to Federal and non-Federal government customers 
        (``Seller'') shall obtain liability insurance of such types and 
        in such amounts as shall be required in accordance with this 
        section and certified by the Secretary to satisfy otherwise 
        compensable third-party claims arising out of, relating to, or 
        resulting from an act of terrorism when qualified anti-
        terrorism technologies have been deployed in defense against or 
        response or recovery from such act.
            (2) Maximum amount.--For the total claims related to 1 such 
        act of terrorism, the Seller is not required to obtain 
        liability insurance of more than the maximum amount of 
        liability insurance reasonably available from private sources 
        on the world market at prices and terms that will not 
        unreasonably distort the sales price of Seller's anti-terrorism 
        technologies.
            (3) Scope of coverage.--Liability insurance obtained 
        pursuant to this subsection shall, in addition to the Seller, 
        protect the following, to the extent of their potential 
        liability for involvement in the manufacture, qualification, 
        sale, use, or operation of qualified anti-terrorism 
        technologies deployed in defense against or response or 
        recovery from an act of terrorism:
                    (A) contractors, subcontractors, suppliers, vendors 
                and customers of the Seller.
                    (B) contractors, subcontractors, suppliers, and 
                vendors of the customer.
            (4) Third party claims.--Such liability insurance under 
        this section shall provide coverage against third party claims 
        arising out of, relating to, or resulting from the sale or use 
        of anti-terrorism technologies.
    (b) Reciprocal Waiver of Claims.--The Seller shall enter into a 
reciprocal waiver of claims with its contractors, subcontractors, 
suppliers, vendors and customers, and contractors and subcontractors of 
the customers, involved in the manufacture, sale, use or operation of 
qualified anti-terrorism technologies, under which each party to the 
waiver agrees to be responsible for losses, including business 
interruption losses, that it sustains, or for losses sustained by its 
own employees resulting from an activity resulting from an act of 
terrorism when qualified anti-terrorism technologies have been deployed 
in defense against or response or recovery from such act.
    (c) Extent of Liability.--Notwithstanding any other provision of 
law, liability for all claims against a Seller arising out of, relating 
to, or resulting from an act of terrorism when qualified anti-terrorism 
technologies have been deployed in defense against or response or 
recovery from such act and such claims result or may result in loss to 
the Seller, whether for compensatory or punitive damages or for 
contribution or indemnity, shall not be in an amount greater than the 
limits of liability insurance coverage required to be maintained by the 
Seller under this section.

SEC. 865. DEFINITIONS.

    For purposes of this subtitle, the following definitions apply:
            (1) Qualified anti-terrorism technology.--For purposes of 
        this subtitle, the term ``qualified anti-terrorism technology'' 
        means any product, equipment, service (including support 
        services), device, or technology (including information 
        technology) designed, developed, modified, or procured for the 
        specific purpose of preventing, detecting, identifying, or 
        deterring acts of terrorism or limiting the harm such acts 
        might otherwise cause, that is designated as such by the 
        Secretary.
            (2) Act of terrorism.--(A) The term ``act of terrorism'' 
        means any act that the Secretary determines meets the 
        requirements under subparagraph (B), as such requirements are 
        further defined and specified by the Secretary.
            (B) Requirements.--An act meets the requirements of this 
        subparagraph if the act--
                    (i) is unlawful;
                    (ii) causes harm to a person, property, or entity, 
                in the United States, or in the case of a domestic 
                United States air carrier or a United States-flag 
                vessel (or a vessel based principally in the United 
                States on which United States income tax is paid and 
                whose insurance coverage is subject to regulation in 
                the United States), in or outside the United States; 
                and
                    (iii) uses or attempts to use instrumentalities, 
                weapons or other methods designed or intended to cause 
                mass destruction, injury or other loss to citizens or 
                institutions of the United States.
            (3) Insurance carrier.--The term ``insurance carrier'' 
        means any corporation, association, society, order, firm, 
        company, mutual, partnership, individual aggregation of 
        individuals, or any other legal entity that provides commercial 
        property and casualty insurance. Such term includes any 
        affiliates of a commercial insurance carrier.
            (4) Liability insurance.--
                    (A) In general.--The term ``liability insurance'' 
                means insurance for legal liabilities incurred by the 
                insured resulting from--
                            (i) loss of or damage to property of 
                        others;
                            (ii) ensuing loss of income or extra 
                        expense incurred because of loss of or damage 
                        to property of others;
                            (iii) bodily injury (including) to persons 
                        other than the insured or its employees; or
                            (iv) loss resulting from debt or default of 
                        another.
            (5) Loss.--The term ``loss'' means death, bodily injury, or 
        loss of or damage to property, including business interruption 
        loss.
            (6) Non-federal government customers.--The term ``non-
        Federal Government customers'' means any customer of a Seller 
        that is not an agency or instrumentality of the United States 
        Government with authority under Public Law 85-804 to provide 
        for indemnification under certain circumstances for third-party 
        claims against its contractors, including but not limited to 
        State and local authorities and commercial entities.

                  Subtitle H--Miscellaneous Provisions

SEC. 871. ADVISORY COMMITTEES.

    (a) In General.--The Secretary may establish, appoint members of, 
and use the services of, advisory committees, as the Secretary may deem 
necessary. An advisory committee established under this section may be 
exempted by the Secretary from Public Law 92-463, but the Secretary 
shall publish notice in the Federal Register announcing the 
establishment of such a committee and identifying its purpose and 
membership. Notwithstanding the preceding sentence, members of an 
advisory committee that is exempted by the Secretary under the 
preceding sentence who are special Government employees (as that term 
is defined in section 202 of title 18, United States Code) shall be 
eligible for certifications under subsection (b)(3) of section 208 of 
title 18, United States Code, for official actions taken as a member of 
such advisory committee.
    (b) Termination.--Any advisory committee established by the 
Secretary shall terminate 2 years after the date of its establishment, 
unless the Secretary makes a written determination to extend the 
advisory committee to a specified date, which shall not be more than 2 
years after the date on which such determination is made. The Secretary 
may make any number of subsequent extensions consistent with this 
subsection.

SEC. 872. REORGANIZATION.

    (a) Reorganization.--The Secretary may allocate or reallocate 
functions among the officers of the Department, and may establish, 
consolidate, alter, or discontinue organizational units within the 
Department, but only--
            (1) pursuant to section 1502(b); or
            (2) after the expiration of 60 days after providing notice 
        of such action to the appropriate congressional committees, 
        which shall include an explanation of the rationale for the 
        action.
    (b) Limitations.--
            (1) In general.--Authority under subsection (a)(1) does not 
        extend to the abolition of any agency, entity, organizational 
        unit, program, or function established or required to be 
        maintained by this Act.
            (2) Abolitions.--Authority under subsection (a)(2) does not 
        extend to the abolition of any agency, entity, organizational 
        unit, program, or function established or required to be 
        maintained by statute.

SEC. 873. USE OF APPROPRIATED FUNDS.

    (a) Disposal of Property.--
            (1) Strict compliance.--If specifically authorized to 
        dispose of real property in this or any other Act, the 
        Secretary shall exercise this authority in strict compliance 
        with section 204 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 485).
            (2) Deposit of proceeds.--The Secretary shall deposit the 
        proceeds of any exercise of property disposal authority into 
        the miscellaneous receipts of the Treasury in accordance with 
        section 3302(b) of title 31, United States Code.
    (b) Gifts.--Gifts or donations of services or property of or for 
the Department may not be accepted, used, or disposed of unless 
specifically permitted in advance in an appropriations Act and only 
under the conditions and for the purposes specified in such 
appropriations Act.
    (c) Budget Request.--Under section 1105 of title 31, United States 
Code, the President shall submit to Congress a detailed budget request 
for the Department for fiscal year 2004, and for each subsequent fiscal 
year.

SEC. 874. FUTURE YEAR HOMELAND SECURITY PROGRAM.

    (a) In General.--Each budget request submitted to Congress for the 
Department under section 1105 of title 31, United States Code, shall, 
at or about the same time, be accompanied by a Future Years Homeland 
Security Program.
    (b) Contents.--The Future Years Homeland Security Program under 
subsection (a) shall be structured, and include the same type of 
information and level of detail, as the Future Years Defense Program 
submitted to Congress by the Department of Defense under section 221 of 
title 10, United States Code.
    (c) Effective Date.--This section shall take effect with respect to 
the preparation and submission of the fiscal year 2005 budget request 
for the Department and for any subsequent fiscal year, except that the 
first Future Years Homeland Security Program shall be submitted not 
later than 90 days after the Department's fiscal year 2005 budget 
request is submitted to Congress.

SEC. 875. MISCELLANEOUS AUTHORITIES.

    (a) Seal.--The Department shall have a seal, whose design is 
subject to the approval of the President.
    (b) Participation of Members of the Armed Forces.--With respect to 
the Department, the Secretary shall have the same authorities that the 
Secretary of Transportation has with respect to the Department of 
Transportation under section 324 of title 49, United States Code.
    (c) Redelegation of Functions.--Unless otherwise provided in the 
delegation or by law, any function delegated under this Act may be 
redelegated to any subordinate.

SEC. 876. MILITARY ACTIVITIES.

    Nothing in this Act shall confer upon the Secretary any authority 
to engage in warfighting, the military defense of the United States, or 
other military activities, nor shall anything in this Act limit the 
existing authority of the Department of Defense or the Armed Forces to 
engage in warfighting, the military defense of the United States, or 
other military activities.

SEC. 877. REGULATORY AUTHORITY AND PREEMPTION.

    (a) Regulatory Authority.--Except as otherwise provided in sections 
306(c), 862(c), and 1706(b), this Act vests no new regulatory authority 
in the Secretary or any other Federal official, and transfers to the 
Secretary or another Federal official only such regulatory authority as 
exists on the date of enactment of this Act within any agency, program, 
or function transferred to the Department pursuant to this Act, or that 
on such date of enactment is exercised by another official of the 
executive branch with respect to such agency, program, or function. Any 
such transferred authority may not be exercised by an official from 
whom it is transferred upon transfer of such agency, program, or 
function to the Secretary or another Federal official pursuant to this 
Act. This Act may not be construed as altering or diminishing the 
regulatory authority of any other executive agency, except to the 
extent that this Act transfers such authority from the agency.
    (b) Preemption of State or Local Law.--Except as otherwise provided 
in this Act, this Act preempts no State or local law, except that any 
authority to preempt State or local law vested in any Federal agency or 
official transferred to the Department pursuant to this Act shall be 
transferred to the Department effective on the date of the transfer to 
the Department of that Federal agency or official.

SEC. 878. COUNTERNARCOTICS OFFICER.

    The Secretary shall appoint a senior official in the Department to 
assume primary responsibility for coordinating policy and operations 
within the Department and between the Department and other Federal 
departments and agencies with respect to interdicting the entry of 
illegal drugs into the United States, and tracking and severing 
connections between illegal drug trafficking and terrorism. Such 
official shall--
            (1) ensure the adequacy of resources within the Department 
        for illicit drug interdiction; and
            (2) serve as the United States Interdiction Coordinator for 
        the Director of National Drug Control Policy.

SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.

    (a) Establishment.--There is established within the Office of the 
Secretary an Office of International Affairs. The Office shall be 
headed by a Director, who shall be a senior official appointed by the 
Secretary.
    (b) Duties of the Director.--The Director shall have the following 
duties:
            (1) To promote information and education exchange with 
        nations friendly to the United States in order to promote 
        sharing of best practices and technologies relating to homeland 
        security. Such exchange shall include the following:
                    (A) Exchange of information on research and 
                development on homeland security technologies.
                    (B) Joint training exercises of first responders.
                    (C) Exchange of expertise on terrorism prevention, 
                response, and crisis management.
            (2) To identify areas for homeland security information and 
        training exchange where the United States has a demonstrated 
        weakness and another friendly nation or nations have a 
        demonstrated expertise.
            (3) To plan and undertake international conferences, 
        exchange programs, and training activities.
            (4) To manage international activities within the 
        Department in coordination with other Federal officials with 
        responsibility for counter-terrorism matters.

SEC. 880. PROHIBITION OF THE TERRORISM INFORMATION AND PREVENTION 
              SYSTEM.

    Any and all activities of the Federal Government to implement the 
proposed component program of the Citizen Corps known as Operation TIPS 
(Terrorism Information and Prevention System) are hereby prohibited.

SEC. 881. REVIEW OF PAY AND BENEFIT PLANS.

    Notwithstanding any other provision of this Act, the Secretary 
shall, in consultation with the Director of the Office of Personnel 
Management, review the pay and benefit plans of each agency whose 
functions are transferred under this Act to the Department and, within 
90 days after the date of enactment, submit a plan to the President of 
the Senate and the Speaker of the House of Representatives and the 
appropriate committees and subcommittees of Congress, for ensuring, to 
the maximum extent practicable, the elimination of disparities in pay 
and benefits throughout the Department, especially among law 
enforcement personnel, that are inconsistent with merit system 
principles set forth in section 2301 of title 5, United States Code.

SEC. 882. OFFICE FOR NATIONAL CAPITAL REGION COORDINATION.

    (a) Establishment.--
            (1) In general.--There is established within the Office of 
        the Secretary the Office of National Capital Region 
        Coordination, to oversee and coordinate Federal programs for 
        and relationships with State, local, and regional authorities 
        in the National Capital Region, as defined under section 
        2674(f)(2) of title 10, United States Code.
            (2) Director.--The Office established under paragraph (1) 
        shall be headed by a Director, who shall be appointed by the 
        Secretary.
            (3) Cooperation.--The Secretary shall cooperate with the 
        Mayor of the District of Columbia, the Governors of Maryland 
        and Virginia, and other State, local, and regional officers in 
        the National Capital Region to integrate the District of 
        Columbia, Maryland, and Virginia into the planning, 
        coordination, and execution of the activities of the Federal 
        Government for the enhancement of domestic preparedness against 
        the consequences of terrorist attacks.
    (b) Responsibilities.--The Office established under subsection 
(a)(1) shall--
            (1) coordinate the activities of the Department relating to 
        the National Capital Region, including cooperation with the 
        Office for State and Local Government Coordination;
            (2) assess, and advocate for, the resources needed by 
        State, local, and regional authorities in the National Capital 
        Region to implement efforts to secure the homeland;
            (3) provide State, local, and regional authorities in the 
        National Capital Region with regular information, research, and 
        technical support to assist the efforts of State, local, and 
        regional authorities in the National Capital Region in securing 
        the homeland;
            (4) develop a process for receiving meaningful input from 
        State, local, and regional authorities and the private sector 
        in the National Capital Region to assist in the development of 
        the homeland security plans and activities of the Federal 
        Government;
            (5) coordinate with Federal agencies in the National 
        Capital Region on terrorism preparedness, to ensure adequate 
        planning, information sharing, training, and execution of the 
        Federal role in domestic preparedness activities;
            (6) coordinate with Federal, State, local, and regional 
        agencies, and the private sector in the National Capital Region 
        on terrorism preparedness to ensure adequate planning, 
        information sharing, training, and execution of domestic 
        preparedness activities among these agencies and entities; and
            (7) serve as a liaison between the Federal Government and 
        State, local, and regional authorities, and private sector 
        entities in the National Capital Region to facilitate access to 
        Federal grants and other programs.
    (c) Annual Report.--The Office established under subsection (a) 
shall submit an annual report to Congress that includes--
            (1) the identification of the resources required to fully 
        implement homeland security efforts in the National Capital 
        Region;
            (2) an assessment of the progress made by the National 
        Capital Region in implementing homeland security efforts; and
            (3) recommendations to Congress regarding the additional 
        resources needed to fully implement homeland security efforts 
        in the National Capital Region.
    (d) Limitation.--Nothing contained in this section shall be 
construed as limiting the power of State and local governments.

SEC. 883. REQUIREMENT TO COMPLY WITH LAWS PROTECTING EQUAL EMPLOYMENT 
              OPPORTUNITY AND PROVIDING WHISTLEBLOWER PROTECTIONS.

    Nothing in this Act shall be construed as exempting the Department 
from requirements applicable with respect to executive agencies--
            (1) to provide equal employment protection for employees of 
        the Department (including pursuant to the provisions in section 
        2302(b)(1) of title 5, United States Code, and the Notification 
        and Federal Employee Antidiscrimination and Retaliation Act of 
        2002 (Pub. L. 107-174)); or
            (2) to provide whistleblower protections for employees of 
        the Department (including pursuant to the provisions in section 
        2302(b)(8) and (9) of such title and the Notification and 
        Federal Employee Antidiscrimination and Retaliation Act of 
        2002).

SEC. 884. FEDERAL LAW ENFORCEMENT TRAINING CENTER.

    (a) In General.--The transfer of an authority or an agency under 
this Act to the Department of Homeland Security does not affect 
training agreements already entered into with the Federal Law 
Enforcement Training Center with respect to the training of personnel 
to carry out that authority or the duties of that transferred agency.
    (b) Continuity of Operations.--All activities of the Federal Law 
Enforcement Training Center transferred to the Department of Homeland 
Security under this Act shall continue to be carried out at the 
locations such activities were carried out before such transfer.

SEC. 885. JOINT INTERAGENCY TASK FORCE.

    (a) Establishment.--The Secretary may establish and operate a 
permanent Joint Interagency Homeland Security Task Force composed of 
representatives from military and civilian agencies of the United 
States Government for the purposes of anticipating terrorist threats 
against the United States and taking appropriate actions to prevent 
harm to the United States.
    (b) Structure.--It is the sense of Congress that the Secretary 
should model the Joint Interagency Homeland Security Task Force on the 
approach taken by the Joint Interagency Task Forces for drug 
interdiction at Key West, Florida and Alameda, California, to the 
maximum extent feasible and appropriate.

SEC. 886. SENSE OF CONGRESS REAFFIRMING THE CONTINUED IMPORTANCE AND 
              APPLICABILITY OF THE POSSE COMITATUS ACT.

    (a) Findings.--Congress finds the following:
            (1) Section 1385 of title 18, United States Code (commonly 
        known as the ``Posse Comitatus Act''), prohibits the use of the 
        Armed Forces as a posse comitatus to execute the laws except in 
        cases and under circumstances expressly authorized by the 
        Constitution or Act of Congress.
            (2) Enacted in 1878, the Posse Comitatus Act was expressly 
        intended to prevent United States Marshals, on their own 
        initiative, from calling on the Army for assistance in 
        enforcing Federal law.
            (3) The Posse Comitatus Act has served the Nation well in 
        limiting the use of the Armed Forces to enforce the law.
            (4) Nevertheless, by its express terms, the Posse Comitatus 
        Act is not a complete barrier to the use of the Armed Forces 
        for a range of domestic purposes, including law enforcement 
        functions, when the use of the Armed Forces is authorized by 
        Act of Congress or the President determines that the use of the 
        Armed Forces is required to fulfill the President's obligations 
        under the Constitution to respond promptly in time of war, 
        insurrection, or other serious emergency.
            (5) Existing laws, including chapter 15 of title 10, United 
        States Code (commonly known as the ``Insurrection Act''), and 
        the Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5121 et seq.), grant the President broad powers 
        that may be invoked in the event of domestic emergencies, 
        including an attack against the Nation using weapons of mass 
        destruction, and these laws specifically authorize the 
        President to use the Armed Forces to help restore public order.
    (b) Sense of Congress.--Congress reaffirms the continued importance 
of section 1385 of title 18, United States Code, and it is the sense of 
Congress that nothing in this Act should be construed to alter the 
applicability of such section to any use of the Armed Forces as a posse 
comitatus to execute the laws.

SEC. 887. COORDINATION WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES 
              UNDER THE PUBLIC HEALTH SERVICE ACT.

    (a) In General.--The annual Federal response plan developed by the 
Department shall be consistent with section 319 of the Public Health 
Service Act (42 U.S.C. 247d).
    (b) Disclosures Among Relevant Agencies.--
            (1) In general.--Full disclosure among relevant agencies 
        shall be made in accordance with this subsection.
            (2) Public health emergency.--During the period in which 
        the Secretary of Health and Human Services has declared the 
        existence of a public health emergency under section 319(a) of 
        the Public Health Service Act (42 U.S.C. 247d(a)), the 
        Secretary of Health and Human Services shall keep relevant 
        agencies, including the Department of Homeland Security, the 
        Department of Justice, and the Federal Bureau of Investigation, 
        fully and currently informed.
            (3) Potential public health emergency.--In cases involving, 
        or potentially involving, a public health emergency, but in 
        which no determination of an emergency by the Secretary of 
        Health and Human Services under section 319(a) of the Public 
        Health Service Act (42 U.S.C. 247d(a)), has been made, all 
        relevant agencies, including the Department of Homeland 
        Security, the Department of Justice, and the Federal Bureau of 
        Investigation, shall keep the Secretary of Health and Human 
        Services and the Director of the Centers for Disease Control 
        and Prevention fully and currently informed.

SEC. 888. PRESERVING COAST GUARD MISSION PERFORMANCE.

    (a) Definitions.--In this section:
            (1) Non-homeland security missions.--The term ``non-
        homeland security missions'' means the following missions of 
        the Coast Guard:
                    (A) Marine safety.
                    (B) Search and rescue.
                    (C) Aids to navigation.
                    (D) Living marine resources (fisheries law 
                enforcement).
                    (E) Marine environmental protection.
                    (F) Ice operations.
            (2) Homeland security missions.--The term ``homeland 
        security missions'' means the following missions of the Coast 
        Guard:
                    (A) Ports, waterways and coastal security.
                    (B) Drug interdiction.
                    (C) Migrant interdiction.
                    (D) Defense readiness.
                    (E) Other law enforcement.
    (b) Transfer.--There are transferred to the Department the 
authorities, functions, personnel, and assets of the Coast Guard, which 
shall be maintained as a distinct entity within the Department, 
including the authorities and functions of the Secretary of 
Transportation relating thereto.
    (c) Maintenance of Status of Functions and Assets.--Notwithstanding 
any other provision of this Act, the authorities, functions, and 
capabilities of the Coast Guard to perform its missions shall be 
maintained intact and without significant reduction after the transfer 
of the Coast Guard to the Department, except as specified in subsequent 
Acts.
    (d) Certain Transfers Prohibited.--No mission, function, or asset 
(including for purposes of this subsection any ship, aircraft, or 
helicopter) of the Coast Guard may be diverted to the principal and 
continuing use of any other organization, unit, or entity of the 
Department, except for details or assignments that do not reduce the 
Coast Guard's capability to perform its missions.
    (e) Changes to Missions.--
            (1) Prohibition.--The Secretary may not substantially or 
        significantly reduce the missions of the Coast Guard or the 
        Coast Guard's capability to perform those missions, except as 
        specified in subsequent Acts.
            (2) Waiver.--The Secretary may waive the restrictions under 
        paragraph (1) for a period of not to exceed 90 days upon a 
        declaration and certification by the Secretary to Congress that 
        a clear, compelling, and immediate need exists for such a 
        waiver. A certification under this paragraph shall include a 
        detailed justification for the declaration and certification, 
        including the reasons and specific information that demonstrate 
        that the Nation and the Coast Guard cannot respond effectively 
        if the restrictions under paragraph (1) are not waived.
    (f) Annual Review.--
            (1) In general.--The Inspector General of the Department 
        shall conduct an annual review that shall assess thoroughly the 
        performance by the Coast Guard of all missions of the Coast 
        Guard (including non-homeland security missions and homeland 
        security missions) with a particular emphasis on examining the 
        non-homeland security missions.
            (2) Report.--The report under this paragraph shall be 
        submitted to--
                    (A) the Committee on Governmental Affairs of the 
                Senate;
                    (B) the Committee on Government Reform of the House 
                of Representatives;
                    (C) the Committees on Appropriations of the Senate 
                and the House of Representatives;
                    (D) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (E) the Committee on Transportation and 
                Infrastructure of the House of Representatives.
    (g) Direct Reporting to Secretary.--Upon the transfer of the Coast 
Guard to the Department, the Commandant shall report directly to the 
Secretary without being required to report through any other official 
of the Department.
    (h) Operation as a Service in the Navy.--None of the conditions and 
restrictions in this section shall apply when the Coast Guard operates 
as a service in the Navy under section 3 of title 14, United States 
Code.
    (i) Report on Accelerating the Integrated Deepwater System.--Not 
later than 90 days after the date of enactment of this Act, the 
Secretary, in consultation with the Commandant of the Coast Guard, 
shall submit a report to the Committee on Commerce, Science, and 
Transportation of the Senate, the Committee on Transportation and 
Infrastructure of the House of Representatives, and the Committees on 
Appropriations of the Senate and the House of Representatives that--
            (1) analyzes the feasibility of accelerating the rate of 
        procurement in the Coast Guard's Integrated Deepwater System 
        from 20 years to 10 years;
            (2) includes an estimate of additional resources required;
            (3) describes the resulting increased capabilities;
            (4) outlines any increases in the Coast Guard's homeland 
        security readiness;
            (5) describes any increases in operational efficiencies; 
        and
            (6) provides a revised asset phase-in time line.

SEC. 889. HOMELAND SECURITY FUNDING ANALYSIS IN PRESIDENT'S BUDGET.

    (a) In General.--Section 1105(a) of title 31, United States Code, 
is amended by adding at the end the following:
            ``(33)(A)(i) a detailed, separate analysis, by budget 
        function, by agency, and by initiative area (as determined by 
        the administration) for the prior fiscal year, the current 
        fiscal year, the fiscal years for which the budget is 
        submitted, and the ensuing fiscal year identifying the amounts 
        of gross and net appropriations or obligational authority and 
        outlays that contribute to homeland security, with separate 
        displays for mandatory and discretionary amounts, including--
                    ``(I) summaries of the total amount of such 
                appropriations or new obligational authority and 
                outlays requested for homeland security;
                    ``(II) an estimate of the current service levels of 
                homeland security spending;
                    ``(III) the most recent risk assessment and summary 
                of homeland security needs in each initiative area (as 
                determined by the administration); and
                    ``(IV) an estimate of user fees collected by the 
                Federal Government on behalf of homeland security 
                activities;
            ``(ii) with respect to subclauses (I) through (IV) of 
        clause (i), amounts shall be provided by account for each 
        program, project and activity; and
            ``(iii) an estimate of expenditures for homeland security 
        activities by State and local governments and the private 
        sector for the prior fiscal year and the current fiscal year.
            ``(B) In this paragraph, consistent with the Office of 
        Management and Budget's June 2002 `Annual Report to Congress on 
        Combatting Terrorism', the term `homeland security' refers to 
        those activities that detect, deter, protect against, and 
        respond to terrorist attacks occurring within the United States 
        and its territories.
            ``(C) In implementing this paragraph, including determining 
        what Federal activities or accounts constitute homeland 
        security for purposes of budgetary classification, the Office 
        of Management and Budget is directed to consult periodically, 
        but at least annually, with the House and Senate Budget 
        Committees, the House and Senate Appropriations Committees, and 
        the Congressional Budget Office.''.
    (b) Repeal of Duplicative Reports.--The following sections are 
repealed:
            (1) Section 1051 of Public Law 105-85.
            (2) Section 1403 of Public Law 105-261.
    (c) Effective Date.--This section and the amendment made by this 
section shall apply beginning with respect to the fiscal year 2005 
budget submission.

SEC. 890. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT.

    The Air Transportation Safety and System Stabilization Act (49 
U.S.C. 40101 note) is amended--
            (1) in section 408 by striking the last sentence of 
        subsection (c); and
            (2) in section 402 by striking paragraph (1) and inserting 
        the following:
            ``(1) Air carrier.--The term `air carrier' means a citizen 
        of the United States undertaking by any means, directly or 
        indirectly, to provide air transportation and includes 
        employees and agents (including persons engaged in the business 
        of providing air transportation security and their affiliates) 
        of such citizen. For purposes of the preceding sentence, the 
        term `agent', as applied to persons engaged in the business of 
        providing air transportation security, shall only include 
        persons that have contracted directly with the Federal Aviation 
        Administration on or after and commenced services no later than 
        February 17, 2002, to provide such security, and had not been 
        or are not debarred for any period within 6 months from that 
        date.''.

                    Subtitle I--Information Sharing

SEC. 891. SHORT TITLE; FINDINGS; AND SENSE OF CONGRESS.

    (a) Short Title.--This subtitle may be cited as the ``Homeland 
Security Information Sharing Act''.
    (b) Findings.--Congress finds the following:
            (1) The Federal Government is required by the Constitution 
        to provide for the common defense, which includes terrorist 
        attack.
            (2) The Federal Government relies on State and local 
        personnel to protect against terrorist attack.
            (3) The Federal Government collects, creates, manages, and 
        protects classified and sensitive but unclassified information 
        to enhance homeland security.
            (4) Some homeland security information is needed by the 
        State and local personnel to prevent and prepare for terrorist 
        attack.
            (5) The needs of State and local personnel to have access 
        to relevant homeland security information to combat terrorism 
        must be reconciled with the need to preserve the protected 
        status of such information and to protect the sources and 
        methods used to acquire such information.
            (6) Granting security clearances to certain State and local 
        personnel is one way to facilitate the sharing of information 
        regarding specific terrorist threats among Federal, State, and 
        local levels of government.
            (7) Methods exist to declassify, redact, or otherwise adapt 
        classified information so it may be shared with State and local 
        personnel without the need for granting additional security 
        clearances.
            (8) State and local personnel have capabilities and 
        opportunities to gather information on suspicious activities 
        and terrorist threats not possessed by Federal agencies.
            (9) The Federal Government and State and local governments 
        and agencies in other jurisdictions may benefit from such 
        information.
            (10) Federal, State, and local governments and 
        intelligence, law enforcement, and other emergency preparation 
        and response agencies must act in partnership to maximize the 
        benefits of information gathering and analysis to prevent and 
        respond to terrorist attacks.
            (11) Information systems, including the National Law 
        Enforcement Telecommunications System and the Terrorist Threat 
        Warning System, have been established for rapid sharing of 
        classified and sensitive but unclassified information among 
        Federal, State, and local entities.
            (12) Increased efforts to share homeland security 
        information should avoid duplicating existing information 
        systems.
    (c) Sense of Congress.--It is the sense of Congress that Federal, 
State, and local entities should share homeland security information to 
the maximum extent practicable, with special emphasis on hard-to-reach 
urban and rural communities.

SEC. 892. FACILITATING HOMELAND SECURITY INFORMATION SHARING 
              PROCEDURES.

    (a) Procedures for Determining Extent of Sharing of Homeland 
Security Information.--
            (1) The President shall prescribe and implement procedures 
        under which relevant Federal agencies--
                    (A) share relevant and appropriate homeland 
                security information with other Federal agencies, 
                including the Department, and appropriate State and 
                local personnel;
                    (B) identify and safeguard homeland security 
                information that is sensitive but unclassified; and
                    (C) to the extent such information is in classified 
                form, determine whether, how, and to what extent to 
                remove classified information, as appropriate, and with 
                which such personnel it may be shared after such 
                information is removed.
            (2) The President shall ensure that such procedures apply 
        to all agencies of the Federal Government.
            (3) Such procedures shall not change the substantive 
        requirements for the classification and safeguarding of 
        classified information.
            (4) Such procedures shall not change the requirements and 
        authorities to protect sources and methods.
    (b) Procedures for Sharing of Homeland Security Information.--
            (1) Under procedures prescribed by the President, all 
        appropriate agencies, including the intelligence community, 
        shall, through information sharing systems, share homeland 
        security information with Federal agencies and appropriate 
        State and local personnel to the extent such information may be 
        shared, as determined in accordance with subsection (a), 
        together with assessments of the credibility of such 
        information.
            (2) Each information sharing system through which 
        information is shared under paragraph (1) shall--
                    (A) have the capability to transmit unclassified or 
                classified information, though the procedures and 
                recipients for each capability may differ;
                    (B) have the capability to restrict delivery of 
                information to specified subgroups by geographic 
                location, type of organization, position of a recipient 
                within an organization, or a recipient's need to know 
                such information;
                    (C) be configured to allow the efficient and 
                effective sharing of information; and
                    (D) be accessible to appropriate State and local 
                personnel.
            (3) The procedures prescribed under paragraph (1) shall 
        establish conditions on the use of information shared under 
        paragraph (1)--
                    (A) to limit the redissemination of such 
                information to ensure that such information is not used 
                for an unauthorized purpose;
                    (B) to ensure the security and confidentiality of 
                such information;
                    (C) to protect the constitutional and statutory 
                rights of any individuals who are subjects of such 
                information; and
                    (D) to provide data integrity through the timely 
                removal and destruction of obsolete or erroneous names 
                and information.
            (4) The procedures prescribed under paragraph (1) shall 
        ensure, to the greatest extent practicable, that the 
        information sharing system through which information is shared 
        under such paragraph include existing information sharing 
        systems, including, but not limited to, the National Law 
        Enforcement Telecommunications System, the Regional Information 
        Sharing System, and the Terrorist Threat Warning System of the 
        Federal Bureau of Investigation.
            (5) Each appropriate Federal agency, as determined by the 
        President, shall have access to each information sharing system 
        through which information is shared under paragraph (1), and 
        shall therefore have access to all information, as appropriate, 
        shared under such paragraph.
            (6) The procedures prescribed under paragraph (1) shall 
        ensure that appropriate State and local personnel are 
        authorized to use such information sharing systems--
                    (A) to access information shared with such 
                personnel; and
                    (B) to share, with others who have access to such 
                information sharing systems, the homeland security 
                information of their own jurisdictions, which shall be 
                marked appropriately as pertaining to potential 
                terrorist activity.
            (7) Under procedures prescribed jointly by the Director of 
        Central Intelligence and the Attorney General, each appropriate 
        Federal agency, as determined by the President, shall review 
        and assess the information shared under paragraph (6) and 
        integrate such information with existing intelligence.
    (c) Sharing of Classified Information and Sensitive but 
Unclassified Information With State and Local Personnel.--
            (1) The President shall prescribe procedures under which 
        Federal agencies may, to the extent the President considers 
        necessary, share with appropriate State and local personnel 
        homeland security information that remains classified or 
        otherwise protected after the determinations prescribed under 
        the procedures set forth in subsection (a).
            (2) It is the sense of Congress that such procedures may 
        include 1 or more of the following means:
                    (A) Carrying out security clearance investigations 
                with respect to appropriate State and local personnel.
                    (B) With respect to information that is sensitive 
                but unclassified, entering into nondisclosure 
                agreements with appropriate State and local personnel.
                    (C) Increased use of information-sharing 
                partnerships that include appropriate State and local 
                personnel, such as the Joint Terrorism Task Forces of 
                the Federal Bureau of Investigation, the Anti-Terrorism 
                Task Forces of the Department of Justice, and regional 
                Terrorism Early Warning Groups.
    (d) Responsible Officials.--For each affected Federal agency, the 
head of such agency shall designate an official to administer this Act 
with respect to such agency.
    (e) Federal Control of Information.--Under procedures prescribed 
under this section, information obtained by a State or local government 
from a Federal agency under this section shall remain under the control 
of the Federal agency, and a State or local law authorizing or 
requiring such a government to disclose information shall not apply to 
such information.
    (f) Definitions.--As used in this section:
            (1) The term ``homeland security information'' means any 
        information possessed by a Federal, State, or local agency 
        that--
                    (A) relates to the threat of terrorist activity;
                    (B) relates to the ability to prevent, interdict, 
                or disrupt terrorist activity;
                    (C) would improve the identification or 
                investigation of a suspected terrorist or terrorist 
                organization; or
                    (D) would improve the response to a terrorist act.
            (2) The term ``intelligence community'' has the meaning 
        given such term in section 3(4) of the National Security Act of 
        1947 (50 U.S.C. 401a(4)).
            (3) The term ``State and local personnel'' means any of the 
        following persons involved in prevention, preparation, or 
        response for terrorist attack:
                    (A) State Governors, mayors, and other locally 
                elected officials.
                    (B) State and local law enforcement personnel and 
                firefighters.
                    (C) Public health and medical professionals.
                    (D) Regional, State, and local emergency management 
                agency personnel, including State adjutant generals.
                    (E) Other appropriate emergency response agency 
                personnel.
                    (F) Employees of private-sector entities that 
                affect critical infrastructure, cyber, economic, or 
                public health security, as designated by the Federal 
                government in procedures developed pursuant to this 
                section.
            (4) The term ``State'' includes the District of Columbia 
        and any commonwealth, territory, or possession of the United 
        States.
    (g) Construction.--Nothing in this Act shall be construed as 
authorizing any department, bureau, agency, officer, or employee of the 
Federal Government to request, receive, or transmit to any other 
Government entity or personnel, or transmit to any State or local 
entity or personnel otherwise authorized by this Act to receive 
homeland security information, any information collected by the Federal 
Government solely for statistical purposes in violation of any other 
provision of law relating to the confidentiality of such information.

SEC. 893. REPORT.

    (a) Report Required.--Not later than 12 months after the date of 
the enactment of this Act, the President shall submit to the 
congressional committees specified in subsection (b) a report on the 
implementation of section 892. The report shall include any 
recommendations for additional measures or appropriation requests, 
beyond the requirements of section 892, to increase the effectiveness 
of sharing of information between and among Federal, State, and local 
entities.
    (b) Specified Congressional Committees.--The congressional 
committees referred to in subsection (a) are the following committees:
            (1) The Permanent Select Committee on Intelligence and the 
        Committee on the Judiciary of the House of Representatives.
            (2) The Select Committee on Intelligence and the Committee 
        on the Judiciary of the Senate.

SEC. 894. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out section 892.

SEC. 895. AUTHORITY TO SHARE GRAND JURY INFORMATION.

    Rule 6(e) of the Federal Rules of Criminal Procedure is amended--
            (1) in paragraph (2), by inserting ``, or of guidelines 
        jointly issued by the Attorney General and Director of Central 
        Intelligence pursuant to Rule 6,'' after ``Rule 6''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)(ii), by inserting ``or of a 
                foreign government'' after ``(including personnel of a 
                state or subdivision of a state'';
                    (B) in subparagraph (C)(i)--
                            (i) in subclause (I), by inserting before 
                        the semicolon the following: ``or, upon a 
                        request by an attorney for the government, when 
                        sought by a foreign court or prosecutor for use 
                        in an official criminal investigation'';
                            (ii) in subclause (IV)--
                                    (I) by inserting ``or foreign'' 
                                after ``may disclose a violation of 
                                State'';
                                    (II) by inserting ``or of a foreign 
                                government'' after ``to an appropriate 
                                official of a State or subdivision of a 
                                State''; and
                                    (III) by striking ``or'' at the 
                                end;
                            (iii) by striking the period at the end of 
                        subclause (V) and inserting ``; or''; and
                            (iv) by adding at the end the following:
                            ``(VI) when matters involve a threat of 
                        actual or potential attack or other grave 
                        hostile acts of a foreign power or an agent of 
                        a foreign power, domestic or international 
                        sabotage, domestic or international terrorism, 
                        or clandestine intelligence gathering 
                        activities by an intelligence service or 
                        network of a foreign power or by an agent of a 
                        foreign power, within the United States or 
                        elsewhere, to any appropriate federal, state, 
                        local, or foreign government official for the 
                        purpose of preventing or responding to such a 
                        threat.''; and
                    (C) in subparagraph (C)(iii)--
                            (i) by striking ``Federal'';
                            (ii) by inserting ``or clause (i)(VI)'' 
                        after ``clause (i)(V)''; and
                            (iii) by adding at the end the following: 
                        ``Any state, local, or foreign official who 
                        receives information pursuant to clause (i)(VI) 
                        shall use that information only consistent with 
                        such guidelines as the Attorney General and 
                        Director of Central Intelligence shall jointly 
                        issue.''.

SEC. 896. AUTHORITY TO SHARE ELECTRONIC, WIRE, AND ORAL INTERCEPTION 
              INFORMATION.

    Section 2517 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(7) Any investigative or law enforcement officer, or other 
Federal official in carrying out official duties as such Federal 
official, who by any means authorized by this chapter, has obtained 
knowledge of the contents of any wire, oral, or electronic 
communication, or evidence derived therefrom, may disclose such 
contents or derivative evidence to a foreign investigative or law 
enforcement officer to the extent that such disclosure is appropriate 
to the proper performance of the official duties of the officer making 
or receiving the disclosure, and foreign investigative or law 
enforcement officers may use or disclose such contents or derivative 
evidence to the extent such use or disclosure is appropriate to the 
proper performance of their official duties.
    ``(8) Any investigative or law enforcement officer, or other 
Federal official in carrying out official duties as such Federal 
official, who by any means authorized by this chapter, has obtained 
knowledge of the contents of any wire, oral, or electronic 
communication, or evidence derived therefrom, may disclose such 
contents or derivative evidence to any appropriate Federal, State, 
local, or foreign government official to the extent that such contents 
or derivative evidence reveals a threat of actual or potential attack 
or other grave hostile acts of a foreign power or an agent of a foreign 
power, domestic or international sabotage, domestic or international 
terrorism, or clandestine intelligence gathering activities by an 
intelligence service or network of a foreign power or by an agent of a 
foreign power, within the United States or elsewhere, for the purpose 
of preventing or responding to such a threat. Any official who receives 
information pursuant to this provision may use that information only as 
necessary in the conduct of that person's official duties subject to 
any limitations on the unauthorized disclosure of such information, and 
any State, local, or foreign official who receives information pursuant 
to this provision may use that information only consistent with such 
guidelines as the Attorney General and Director of Central Intelligence 
shall jointly issue.''.

SEC. 897. FOREIGN INTELLIGENCE INFORMATION.

    (a) Dissemination Authorized.--Section 203(d)(1) of the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Public 
Law 107-56; 50 U.S.C. 403-5d) is amended by adding at the end the 
following: ``Consistent with the responsibility of the Director of 
Central Intelligence to protect intelligence sources and methods, and 
the responsibility of the Attorney General to protect sensitive law 
enforcement information, it shall be lawful for information revealing a 
threat of actual or potential attack or other grave hostile acts of a 
foreign power or an agent of a foreign power, domestic or international 
sabotage, domestic or international terrorism, or clandestine 
intelligence gathering activities by an intelligence service or network 
of a foreign power or by an agent of a foreign power, within the United 
States or elsewhere, obtained as part of a criminal investigation to be 
disclosed to any appropriate Federal, State, local, or foreign 
government official for the purpose of preventing or responding to such 
a threat. Any official who receives information pursuant to this 
provision may use that information only as necessary in the conduct of 
that person's official duties subject to any limitations on the 
unauthorized disclosure of such information, and any State, local, or 
foreign official who receives information pursuant to this provision 
may use that information only consistent with such guidelines as the 
Attorney General and Director of Central Intelligence shall jointly 
issue.''.
    (b) Conforming Amendments.--Section 203(c) of that Act is amended--
            (1) by striking ``section 2517(6)'' and inserting 
        ``paragraphs (6) and (8) of section 2517 of title 18, United 
        States Code,''; and
            (2) by inserting ``and (VI)'' after ``Rule 
        6(e)(3)(C)(i)(V)''.

SEC. 898. INFORMATION ACQUIRED FROM AN ELECTRONIC SURVEILLANCE.

    Section 106(k)(1) of the Foreign Intelligence Surveillance Act of 
1978 (50 U.S.C. 1806) is amended by inserting after ``law enforcement 
officers'' the following: ``or law enforcement personnel of a State or 
political subdivision of a State (including the chief executive officer 
of that State or political subdivision who has the authority to appoint 
or direct the chief law enforcement officer of that State or political 
subdivision)''.

SEC. 899. INFORMATION ACQUIRED FROM A PHYSICAL SEARCH.

    Section 305(k)(1) of the Foreign Intelligence Surveillance Act of 
1978 (50 U.S.C. 1825) is amended by inserting after ``law enforcement 
officers'' the following: ``or law enforcement personnel of a State or 
political subdivision of a State (including the chief executive officer 
of that State or political subdivision who has the authority to appoint 
or direct the chief law enforcement officer of that State or political 
subdivision)''.

              TITLE IX--NATIONAL HOMELAND SECURITY COUNCIL

SEC. 901. NATIONAL HOMELAND SECURITY COUNCIL.

    There is established within the Executive Office of the President a 
council to be known as the ``Homeland Security Council'' (in this title 
referred to as the ``Council'').

SEC. 902. FUNCTION.

    The function of the Council shall be to advise the President on 
homeland security matters.

SEC. 903. MEMBERSHIP.

    The members of the Council shall be the following:
            (1) The President.
            (2) The Vice President.
            (3) The Secretary of Homeland Security.
            (4) The Attorney General.
            (5) The Secretary of Defense.
            (6) Such other individuals as may be designated by the 
        President.

SEC. 904. OTHER FUNCTIONS AND ACTIVITIES.

    For the purpose of more effectively coordinating the policies and 
functions of the United States Government relating to homeland 
security, the Council shall--
            (1) assess the objectives, commitments, and risks of the 
        United States in the interest of homeland security and to make 
        resulting recommendations to the President;
            (2) oversee and review homeland security policies of the 
        Federal Government and to make resulting recommendations to the 
        President; and
            (3) perform such other functions as the President may 
        direct.

SEC. 905. STAFF COMPOSITION.

    The Council shall have a staff, the head of which shall be a 
civilian Executive Secretary, who shall be appointed by the President. 
The President is authorized to fix the pay of the Executive Secretary 
at a rate not to exceed the rate of pay payable to the Executive 
Secretary of the National Security Council.

SEC. 906. RELATION TO THE NATIONAL SECURITY COUNCIL.

    The President may convene joint meetings of the Homeland Security 
Council and the National Security Council with participation by members 
of either Council or as the President may otherwise direct.

                     TITLE X--INFORMATION SECURITY

SEC. 1001. INFORMATION SECURITY.

    (a) Short Title.--This title may be cited as the ``Federal 
Information Security Management Act of 2002''.
    (b) Information Security.--
            (1) In general.--Subchapter II of chapter 35 of title 44, 
        United States Code, is amended to read as follows:

                 ``SUBCHAPTER II--INFORMATION SECURITY

``Sec. 3531. Purposes
    ``The purposes of this subchapter are to--
            ``(1) provide a comprehensive framework for ensuring the 
        effectiveness of information security controls over information 
        resources that support Federal operations and assets;
            ``(2) recognize the highly networked nature of the current 
        Federal computing environment and provide effective 
        governmentwide management and oversight of the related 
        information security risks, including coordination of 
        information security efforts throughout the civilian, national 
        security, and law enforcement communities;
            ``(3) provide for development and maintenance of minimum 
        controls required to protect Federal information and 
        information systems;
            ``(4) provide a mechanism for improved oversight of Federal 
        agency information security programs;
            ``(5) acknowledge that commercially developed information 
        security products offer advanced, dynamic, robust, and 
        effective information security solutions, reflecting market 
        solutions for the protection of critical information 
        infrastructures important to the national defense and economic 
        security of the nation that are designed, built, and operated 
        by the private sector; and
            ``(6) recognize that the selection of specific technical 
        hardware and software information security solutions should be 
        left to individual agencies from among commercially developed 
        products.''.
``Sec. 3532. Definitions
    ``(a) In General.--Except as provided under subsection (b), the 
definitions under section 3502 shall apply to this subchapter.
    ``(b) Additional Definitions.--As used in this subchapter--
            ``(1) the term `information security' means protecting 
        information and information systems from unauthorized access, 
        use, disclosure, disruption, modification, or destruction in 
        order to provide--
                    ``(A) integrity, which means guarding against 
                improper information modification or destruction, and 
                includes ensuring information nonrepudiation and 
                authenticity;
                    ``(B) confidentiality, which means preserving 
                authorized restrictions on access and disclosure, 
                including means for protecting personal privacy and 
                proprietary information;
                    ``(C) availability, which means ensuring timely and 
                reliable access to and use of information; and
                    ``(D) authentication, which means utilizing digital 
                credentials to assure the identity of users and 
                validate their access;
            ``(2) the term `national security system' means any 
        information system (including any telecommunications system) 
        used or operated by an agency or by a contractor of an agency, 
        or other organization on behalf of an agency, the function, 
        operation, or use of which--
                    ``(A) involves intelligence activities;
                    ``(B) involves cryptologic activities related to 
                national security;
                    ``(C) involves command and control of military 
                forces;
                    ``(D) involves equipment that is an integral part 
                of a weapon or weapons system; or
                    ``(E) is critical to the direct fulfillment of 
                military or intelligence missions provided that this 
                definition does not apply to a system that is used for 
                routine administrative and business applications 
                (including payroll, finance, logistics, and personnel 
                management applications);
            ``(3) the term `information technology' has the meaning 
        given that term in section 11101 of title 40; and
            ``(4) the term `information system' means any equipment or 
        interconnected system or subsystems of equipment that is used 
        in the automatic acquisition, storage, manipulation, 
        management, movement, control, display, switching, interchange, 
        transmission, or reception of data or information, and 
        includes--
                    ``(A) computers and computer networks;
                    ``(B) ancillary equipment;
                    ``(C) software, firmware, and related procedures;
                    ``(D) services, including support services; and
                    ``(E) related resources.''.
``Sec. 3533. Authority and functions of the Director
    ``(a) The Director shall oversee agency information security 
policies and practices, by--
            ``(1) promulgating information security standards under 
        section 11331 of title 40;
            ``(2) overseeing the implementation of policies, 
        principles, standards, and guidelines on information security;
            ``(3) requiring agencies, consistent with the standards 
        promulgated under such section 11331 and the requirements of 
        this subchapter, to identify and provide information security 
        protections commensurate with the risk and magnitude of the 
        harm resulting from the unauthorized access, use, disclosure, 
        disruption, modification, or destruction of--
                    ``(A) information collected or maintained by or on 
                behalf of an agency; or
                    ``(B) information systems used or operated by an 
                agency or by a contractor of an agency or other 
                organization on behalf of an agency;
            ``(4) coordinating the development of standards and 
        guidelines under section 20 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278g-3) with agencies 
        and offices operating or exercising control of national 
        security systems (including the National Security Agency) to 
        assure, to the maximum extent feasible, that such standards and 
        guidelines are complementary with standards and guidelines 
        developed for national security systems;
            ``(5) overseeing agency compliance with the requirements of 
        this subchapter, including through any authorized action under 
        section 11303(b)(5) of title 40, to enforce accountability for 
        compliance with such requirements;
            ``(6) reviewing at least annually, and approving or 
        disapproving, agency information security programs required 
        under section 3534(b);
            ``(7) coordinating information security policies and 
        procedures with related information resources management 
        policies and procedures; and
            ``(8) reporting to Congress no later than March 1 of each 
        year on agency compliance with the requirements of this 
        subchapter, including--
                    ``(A) a summary of the findings of evaluations 
                required by section 3535;
                    ``(B) significant deficiencies in agency 
                information security practices;
                    ``(C) planned remedial action to address such 
                deficiencies; and
                    ``(D) a summary of, and the views of the Director 
                on, the report prepared by the National Institute of 
                Standards and Technology under section 20(d)(9) of the 
                National Institute of Standards and Technology Act (15 
                U.S.C. 278g-3).''.
    ``(b) Except for the authorities described in paragraphs (4) and 
(7) of subsection (a), the authorities of the Director under this 
section shall not apply to national security systems.
``Sec. 3534. Federal agency responsibilities
    ``(a) The head of each agency shall--
            ``(1) be responsible for--
                    ``(A) providing information security protections 
                commensurate with the risk and magnitude of the harm 
                resulting from unauthorized access, use, disclosure, 
                disruption, modification, or destruction of--
                            ``(i) information collected or maintained 
                        by or on behalf of the agency; and
                            ``(ii) information systems used or operated 
                        by an agency or by a contractor of an agency or 
                        other organization on behalf of an agency;
                    ``(B) complying with the requirements of this 
                subchapter and related policies, procedures, standards, 
                and guidelines, including--
                            ``(i) information security standards 
                        promulgated by the Director under section 11331 
                        of title 40; and
                            ``(ii) information security standards and 
                        guidelines for national security systems issued 
                        in accordance with law and as directed by the 
                        President; and
                    ``(C) ensuring that information security management 
                processes are integrated with agency strategic and 
                operational planning processes;
            ``(2) ensure that senior agency officials provide 
        information security for the information and information 
        systems that support the operations and assets under their 
        control, including through--
                    ``(A) assessing the risk and magnitude of the harm 
                that could result from the unauthorized access, use, 
                disclosure, disruption, modification, or destruction of 
                such information or information systems;
                    ``(B) determining the levels of information 
                security appropriate to protect such information and 
                information systems in accordance with standards 
                promulgated under section 11331 of title 40 for 
                information security classifications and related 
                requirements;
                    ``(C) implementing policies and procedures to cost-
                effectively reduce risks to an acceptable level; and
                    ``(D) periodically testing and evaluating 
                information security controls and techniques to ensure 
                that they are effectively implemented;
            ``(3) delegate to the agency Chief Information Officer 
        established under section 3506 (or comparable official in an 
        agency not covered by such section) the authority to ensure 
        compliance with the requirements imposed on the agency under 
        this subchapter, including--
                    ``(A) designating a senior agency information 
                security officer who shall--
                            ``(i) carry out the Chief Information 
                        Officer's responsibilities under this section;
                            ``(ii) possess professional qualifications, 
                        including training and experience, required to 
                        administer the functions described under this 
                        section;
                            ``(iii) have information security duties as 
                        that official's primary duty; and
                            ``(iv) head an office with the mission and 
                        resources to assist in ensuring agency 
                        compliance with this section;
                    ``(B) developing and maintaining an agencywide 
                information security program as required by subsection 
                (b);
                    ``(C) developing and maintaining information 
                security policies, procedures, and control techniques 
                to address all applicable requirements, including those 
                issued under section 3533 of this title, and section 
                11331 of title 40;
                    ``(D) training and overseeing personnel with 
                significant responsibilities for information security 
                with respect to such responsibilities; and
                    ``(E) assisting senior agency officials concerning 
                their responsibilities under paragraph (2);
            ``(4) ensure that the agency has trained personnel 
        sufficient to assist the agency in complying with the 
        requirements of this subchapter and related policies, 
        procedures, standards, and guidelines; and
            ``(5) ensure that the agency Chief Information Officer, in 
        coordination with other senior agency officials, reports 
        annually to the agency head on the effectiveness of the agency 
        information security program, including progress of remedial 
        actions.
    ``(b) Each agency shall develop, document, and implement an 
agencywide information security program, approved by the Director under 
section 3533(a)(5), to provide information security for the information 
and information systems that support the operations and assets of the 
agency, including those provided or managed by another agency, 
contractor, or other source, that includes--
            ``(1) periodic assessments of the risk and magnitude of the 
        harm that could result from the unauthorized access, use, 
        disclosure, disruption, modification, or destruction of 
        information and information systems that support the operations 
        and assets of the agency;
            ``(2) policies and procedures that--
                    ``(A) are based on the risk assessments required by 
                paragraph (1);
                    ``(B) cost-effectively reduce information security 
                risks to an acceptable level;
                    ``(C) ensure that information security is addressed 
                throughout the life cycle of each agency information 
                system; and
                    ``(D) ensure compliance with--
                            ``(i) the requirements of this subchapter;
                            ``(ii) policies and procedures as may be 
                        prescribed by the Director, and information 
                        security standards promulgated under section 
                        11331 of title 40;
                            ``(iii) minimally acceptable system 
                        configuration requirements, as determined by 
                        the agency; and
                            ``(iv) any other applicable requirements, 
                        including standards and guidelines for national 
                        security systems issued in accordance with law 
                        and as directed by the President;
            ``(3) subordinate plans for providing adequate information 
        security for networks, facilities, and systems or groups of 
        information systems, as appropriate;
            ``(4) security awareness training to inform personnel, 
        including contractors and other users of information systems 
        that support the operations and assets of the agency, of--
                    ``(A) information security risks associated with 
                their activities; and
                    ``(B) their responsibilities in complying with 
                agency policies and procedures designed to reduce these 
                risks;
            ``(5) periodic testing and evaluation of the effectiveness 
        of information security policies, procedures, and practices, to 
        be performed with a frequency depending on risk, but no less 
        than annually, of which such testing--
                    ``(A) shall include testing of management, 
                operational, and technical controls of every 
                information system identified in the inventory required 
                under section 3505(c); and
                    ``(B) may include testing relied on in a evaluation 
                under section 3535;
            ``(6) a process for planning, implementing, evaluating, and 
        documenting remedial action to address any deficiencies in the 
        information security policies, procedures, and practices of the 
        agency;
            ``(7) procedures for detecting, reporting, and responding 
        to security incidents, including--
                    ``(A) mitigating risks associated with such 
                incidents before substantial damage is done; and
                    ``(B) notifying and consulting with, as 
                appropriate--
                            ``(i) law enforcement agencies and relevant 
                        Offices of Inspector General;
                            ``(ii) an office designated by the 
                        President for any incident involving a national 
                        security system; and
                            ``(iii) any other agency or office, in 
                        accordance with law or as directed by the 
                        President; and
            ``(8) plans and procedures to ensure continuity of 
        operations for information systems that support the operations 
        and assets of the agency.
    ``(c) Each agency shall--
            ``(1) report annually to the Director, the Committees on 
        Government Reform and Science of the House of Representatives, 
        the Committees on Governmental Affairs and Commerce, Science, 
        and Transportation of the Senate, the appropriate authorization 
        and appropriations committees of Congress, and the Comptroller 
        General on the adequacy and effectiveness of information 
        security policies, procedures, and practices, and compliance 
        with the requirements of this subchapter, including compliance 
        with each requirement of subsection (b);
            ``(2) address the adequacy and effectiveness of information 
        security policies, procedures, and practices in plans and 
        reports relating to--
                    ``(A) annual agency budgets;
                    ``(B) information resources management under 
                subchapter 1 of this chapter;
                    ``(C) information technology management under 
                subtitle III of title 40;
                    ``(D) program performance under sections 1105 and 
                1115 through 1119 of title 31, and sections 2801 and 
                2805 of title 39;
                    ``(E) financial management under chapter 9 of title 
                31, and the Chief Financial Officers Act of 1990 (31 
                U.S.C. 501 note; Public Law 101-576) (and the 
                amendments made by that Act);
                    ``(F) financial management systems under the 
                Federal Financial Management Improvement Act (31 U.S.C. 
                3512 note); and
                    ``(G) internal accounting and administrative 
                controls under section 3512 of title 31, United States 
                Code, (known as the `Federal Managers Financial 
                Integrity Act'); and
            ``(3) report any significant deficiency in a policy, 
        procedure, or practice identified under paragraph (1) or (2)--
                    ``(A) as a material weakness in reporting under 
                section 3512 of title 31; and
                    ``(B) if relating to financial management systems, 
                as an instance of a lack of substantial compliance 
                under the Federal Financial Management Improvement Act 
                (31 U.S.C. 3512 note).
    ``(d)(1) In addition to the requirements of subsection (c), each 
agency, in consultation with the Director, shall include as part of the 
performance plan required under section 1115 of title 31 a description 
of--
            ``(A) the time periods, and
            ``(B) the resources, including budget, staffing, and 
        training,
that are necessary to implement the program required under subsection 
(b).
    ``(2) The description under paragraph (1) shall be based on the 
risk assessments required under subsection (b)(2)(1).
    ``(e) Each agency shall provide the public with timely notice and 
opportunities for comment on proposed information security policies and 
procedures to the extent that such policies and procedures affect 
communication with the public.
``Sec. 3535. Annual independent evaluation
    ``(a)(1) Each year each agency shall have performed an independent 
evaluation of the information security program and practices of that 
agency to determine the effectiveness of such program and practices.
    ``(2) Each evaluation by an agency under this section shall 
include--
            ``(A) testing of the effectiveness of information security 
        policies, procedures, and practices of a representative subset 
        of the agency's information systems;
            ``(B) an assessment (made on the basis of the results of 
        the testing) of compliance with--
                    ``(i) the requirements of this subchapter; and
                    ``(ii) related information security policies, 
                procedures, standards, and guidelines; and
            ``(C) separate presentations, as appropriate, regarding 
        information security relating to national security systems.
    ``(b) Subject to subsection (c)--
            ``(1) for each agency with an Inspector General appointed 
        under the Inspector General Act of 1978, the annual evaluation 
        required by this section shall be performed by the Inspector 
        General or by an independent external auditor, as determined by 
        the Inspector General of the agency; and
            ``(2) for each agency to which paragraph (1) does not 
        apply, the head of the agency shall engage an independent 
        external auditor to perform the evaluation.
    ``(c) For each agency operating or exercising control of a national 
security system, that portion of the evaluation required by this 
section directly relating to a national security system shall be 
performed--
            ``(1) only by an entity designated by the agency head; and
            ``(2) in such a manner as to ensure appropriate protection 
        for information associated with any information security 
        vulnerability in such system commensurate with the risk and in 
        accordance with all applicable laws.
    ``(d) The evaluation required by this section--
            ``(1) shall be performed in accordance with generally 
        accepted government auditing standards; and
            ``(2) may be based in whole or in part on an audit, 
        evaluation, or report relating to programs or practices of the 
        applicable agency.
    ``(e) Each year, not later than such date established by the 
Director, the head of each agency shall submit to the Director the 
results of the evaluation required under this section.
    ``(f) Agencies and evaluators shall take appropriate steps to 
ensure the protection of information which, if disclosed, may adversely 
affect information security. Such protections shall be commensurate 
with the risk and comply with all applicable laws and regulations.
    ``(g)(1) The Director shall summarize the results of the 
evaluations conducted under this section in the report to Congress 
required under section 3533(a)(8).
    ``(2) The Director's report to Congress under this subsection shall 
summarize information regarding information security relating to 
national security systems in such a manner as to ensure appropriate 
protection for information associated with any information security 
vulnerability in such system commensurate with the risk and in 
accordance with all applicable laws.
    ``(3) Evaluations and any other descriptions of information systems 
under the authority and control of the Director of Central Intelligence 
or of National Foreign Intelligence Programs systems under the 
authority and control of the Secretary of Defense shall be made 
available to Congress only through the appropriate oversight committees 
of Congress, in accordance with applicable laws.
    ``(h) The Comptroller General shall periodically evaluate and 
report to Congress on--
            ``(1) the adequacy and effectiveness of agency information 
        security policies and practices; and
            ``(2) implementation of the requirements of this 
        subchapter.
``Sec. 3536. National security systems
    ``The head of each agency operating or exercising control of a 
national security system shall be responsible for ensuring that the 
agency--
            ``(1) provides information security protections 
        commensurate with the risk and magnitude of the harm resulting 
        from the unauthorized access, use, disclosure, disruption, 
        modification, or destruction of the information contained in 
        such system;
            ``(2) implements information security policies and 
        practices as required by standards and guidelines for national 
        security systems, issued in accordance with law and as directed 
        by the President; and
            ``(3) complies with the requirements of this subchapter.
``Sec. 3537. Authorization of appropriations
    ``There are authorized to be appropriated to carry out the 
provisions of this subchapter such sums as may be necessary for each of 
fiscal years 2003 through 2007.
``Sec. 3538. Effect on existing law
    ``Nothing in this subchapter, section 11331 of title 40, or section 
20 of the National Standards and Technology Act (15 U.S.C. 278g-3) may 
be construed as affecting the authority of the President, the Office of 
Management and Budget or the Director thereof, the National Institute 
of Standards and Technology, or the head of any agency, with respect to 
the authorized use or disclosure of information, including with regard 
to the protection of personal privacy under section 552a of title 5, 
the disclosure of information under section 552 of title 5, the 
management and disposition of records under chapters 29, 31, or 33 of 
title 44, the management of information resources under subchapter I of 
chapter 35 of this title, or the disclosure of information to Congress 
or the Comptroller General of the United States.''.
            (2) Clerical amendment.--The items in the table of sections 
        at the beginning of such chapter 35 under the heading 
        ``SUBCHAPTER II'' are amended to read as follows:

``3531. Purposes.
``3532. Definitions.
``3533. Authority and functions of the Director.
``3534. Federal agency responsibilities.
``3535. Annual independent evaluation.
``3536. National security systems.
``3537. Authorization of appropriations.
``3538. Effect on existing law.''.
    (c) Information Security Responsibilities of Certain Agencies.--
            (1) National security responsibilities.--(A) Nothing in 
        this Act (including any amendment made by this Act) shall 
        supersede any authority of the Secretary of Defense, the 
        Director of Central Intelligence, or other agency head, as 
        authorized by law and as directed by the President, with regard 
        to the operation, control, or management of national security 
        systems, as defined by section 3532(3) of title 44, United 
        States Code.
            (B) Section 2224 of title 10, United States Code, is 
        amended--
                    (i) in subsection 2224(b), by striking ``(b) 
                Objectives and Minimum Requirements.--(1)'' and 
                inserting ``(b) Objectives of the Program.--'';
                    (ii) in subsection 2224(b), by striking ``(2) the 
                program shall at a minimum meet the requirements of 
                section 3534 and 3535 of title 44, United States 
                Code.''; and
                    (iii) in subsection 2224(c), by inserting ``, 
                including through compliance with subtitle II of 
                chapter 35 of title 44'' after ``infrastructure''.
            (2) Atomic energy act of 1954.--Nothing in this Act shall 
        supersede any requirement made by or under the Atomic Energy 
        Act of 1954 (42 U.S.C. 2011 et seq.). Restricted Data or 
        Formerly Restricted Data shall be handled, protected, 
        classified, downgraded, and declassified in conformity with the 
        Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 1002. MANAGEMENT OF INFORMATION TECHNOLOGY.

    (a) In General.--Section 11331 of title 40, United States Code, is 
amended to read as follows:
``Sec. 11331. Responsibilities for Federal information systems 
              standards
    ``(a) Definition.--In this section, the term `information security' 
has the meaning given that term in section 3532(b)(1) of title 44.
    ``(b) Requirement to Prescribe Standards.--
            ``(1) In general.--
                    ``(A) Requirement.--Except as provided under 
                paragraph (2), the Director of the Office of Management 
                and Budget shall, on the basis of proposed standards 
                developed by the National Institute of Standards and 
                Technology pursuant to paragraphs (2) and (3) of 
                section 20(a) of the National Institute of Standards 
                and Technology Act (15 U.S.C. 278g-3(a)) and in 
                consultation with the Secretary of Homeland Security, 
                promulgate information security standards pertaining to 
                Federal information systems.
                    ``(B) Required standards.--Standards promulgated 
                under subparagraph (A) shall include--
                            ``(i) standards that provide minimum 
                        information security requirements as determined 
                        under section 20(b) of the National Institute 
                        of Standards and Technology Act (15 U.S.C. 
                        278g-3(b)); and
                            ``(ii) such standards that are otherwise 
                        necessary to improve the efficiency of 
                        operation or security of Federal information 
                        systems.
                    ``(C) Required standards binding.--Information 
                security standards described under subparagraph (B) 
                shall be compulsory and binding.
            ``(2) Standards and guidelines for national security 
        systems.--Standards and guidelines for national security 
        systems, as defined under section 3532(3) of title 44, shall be 
        developed, promulgated, enforced, and overseen as otherwise 
        authorized by law and as directed by the President.
    ``(c) Application of More Stringent Standards.--The head of an 
agency may employ standards for the cost-effective information security 
for all operations and assets within or under the supervision of that 
agency that are more stringent than the standards promulgated by the 
Director under this section, if such standards--
            ``(1) contain, at a minimum, the provisions of those 
        applicable standards made compulsory and binding by the 
        Director; and
            ``(2) are otherwise consistent with policies and guidelines 
        issued under section 3533 of title 44.
    ``(d) Requirements Regarding Decisions by Director.--
            ``(1) Deadline.--The decision regarding the promulgation of 
        any standard by the Director under subsection (b) shall occur 
        not later than 6 months after the submission of the proposed 
        standard to the Director by the National Institute of Standards 
        and Technology, as provided under section 20 of the National 
        Institute of Standards and Technology Act (15 U.S.C. 278g-3).
            ``(2) Notice and comment.--A decision by the Director to 
        significantly modify, or not promulgate, a proposed standard 
        submitted to the Director by the National Institute of 
        Standards and Technology, as provided under section 20 of the 
        National Institute of Standards and Technology Act (15 U.S.C. 
        278g-3), shall be made after the public is given an opportunity 
        to comment on the Director's proposed decision.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 113 of title 40, United States Code, is amended by striking the 
item relating to section 11331 and inserting the following:

``11331. Responsibilities for Federal information systems standards.''.

SEC. 1003. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

    Section 20 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278g-3), is amended by striking the text and inserting 
the following:
    ``(a) The Institute shall--
            ``(1) have the mission of developing standards, guidelines, 
        and associated methods and techniques for information systems;
            ``(2) develop standards and guidelines, including minimum 
        requirements, for information systems used or operated by an 
        agency or by a contractor of an agency or other organization on 
        behalf of an agency, other than national security systems (as 
        defined in section 3532(b)(2) of title 44, United States Code);
            ``(3) develop standards and guidelines, including minimum 
        requirements, for providing adequate information security for 
        all agency operations and assets, but such standards and 
        guidelines shall not apply to national security systems; and
            ``(4) carry out the responsibilities described in paragraph 
        (3) through the Computer Security Division.
    ``(b) The standards and guidelines required by subsection (a) shall 
include, at a minimum--
            ``(1)(A) standards to be used by all agencies to categorize 
        all information and information systems collected or maintained 
        by or on behalf of each agency based on the objectives of 
        providing appropriate levels of information security according 
        to a range of risk levels;
            ``(B) guidelines recommending the types of information and 
        information systems to be included in each such category; and
            ``(C) minimum information security requirements for 
        information and information systems in each such category;
            ``(2) a definition of and guidelines concerning detection 
        and handling of information security incidents; and
            ``(3) guidelines developed in coordination with the 
        National Security Agency for identifying an information system 
        as a national security system consistent with applicable 
        requirements for national security systems, issued in 
        accordance with law and as directed by the President.
    ``(c) In developing standards and guidelines required by 
subsections (a) and (b), the Institute shall--
            ``(1) consult with other agencies and offices (including, 
        but not limited to, the Director of the Office of Management 
        and Budget, the Departments of Defense and Energy, the National 
        Security Agency, the General Accounting Office, and the 
        Secretary of Homeland Security) to assure--
                    ``(A) use of appropriate information security 
                policies, procedures, and techniques, in order to 
                improve information security and avoid unnecessary and 
                costly duplication of effort; and
                    ``(B) that such standards and guidelines are 
                complementary with standards and guidelines employed 
                for the protection of national security systems and 
                information contained in such systems;
            ``(2) provide the public with an opportunity to comment on 
        proposed standards and guidelines;
            ``(3) submit to the Director of the Office of Management 
        and Budget for promulgation under section 11331 of title 40, 
        United States Code--
                    ``(A) standards, as required under subsection 
                (b)(1)(A), no later than 12 months after the date of 
                the enactment of this section; and
                    ``(B) minimum information security requirements for 
                each category, as required under subsection (b)(1)(C), 
                no later than 36 months after the date of the enactment 
                of this section;
            ``(4) issue guidelines as required under subsection 
        (b)(1)(B), no later than 18 months after the date of the 
        enactment of this Act;
            ``(5) ensure that such standards and guidelines do not 
        require specific technological solutions or products, including 
        any specific hardware or software security solutions;
            ``(6) ensure that such standards and guidelines provide for 
        sufficient flexibility to permit alternative solutions to 
        provide equivalent levels of protection for identified 
        information security risks; and
            ``(7) use flexible, performance-based standards and 
        guidelines that, to the greatest extent possible, permit the 
        use of off-the-shelf commercially developed information 
        security products.
    ``(d) The Institute shall--
            ``(1) submit standards developed pursuant to subsection 
        (a), along with recommendations as to the extent to which these 
        should be made compulsory and binding, to the Director of the 
        Office of Management and Budget for promulgation under section 
        11331 of title 40, United States Code;
            ``(2) provide assistance to agencies regarding--
                    ``(A) compliance with the standards and guidelines 
                developed under subsection (a);
                    ``(B) detecting and handling information security 
                incidents; and
                    ``(C) information security policies, procedures, 
                and practices;
            ``(3) conduct research, as needed, to determine the nature 
        and extent of information security vulnerabilities and 
        techniques for providing cost-effective information security;
            ``(4) develop and periodically revise performance 
        indicators and measures for agency information security 
        policies and practices;
            ``(5) evaluate private sector information security policies 
        and practices and commercially available information 
        technologies to assess potential application by agencies to 
        strengthen information security;
            ``(6) evaluate security policies and practices developed 
        for national security systems to assess potential application 
        by agencies to strengthen information security;
            ``(7) periodically assess the effectiveness of standards 
        and guidelines developed under this section and undertake 
        revisions as appropriate;
            ``(8) solicit and consider the recommendations of the 
        Information Security and Privacy Advisory Board, established by 
        section 21, regarding standards and guidelines developed under 
        subsection (a) and submit such recommendations to the Director 
        of the Office of Management and Budget with such standards 
        submitted to the Director; and
            ``(9) prepare an annual public report on activities 
        undertaken in the previous year, and planned for the coming 
        year, to carry out responsibilities under this section.
    ``(e) As used in this section--
            ``(1) the term `agency' has the same meaning as provided in 
        section 3502(1) of title 44, United States Code;
            ``(2) the term `information security' has the same meaning 
        as provided in section 3532(1) of such title;
            ``(3) the term `information system' has the same meaning as 
        provided in section 3502(8) of such title;
            ``(4) the term `information technology' has the same 
        meaning as provided in section 11101 of title 40, United States 
        Code; and
            ``(5) the term `national security system' has the same 
        meaning as provided in section 3532(b)(2) of such title.''.

SEC. 1004. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.

    Section 21 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278g-4), is amended--
            (1) in subsection (a), by striking ``Computer System 
        Security and Privacy Advisory Board'' and inserting 
        ``Information Security and Privacy Advisory Board'';
            (2) in subsection (a)(1), by striking ``computer or 
        telecommunications'' and inserting ``information technology'';
            (3) in subsection (a)(2)--
                    (A) by striking ``computer or telecommunications 
                technology'' and inserting ``information technology''; 
                and
                    (B) by striking ``computer or telecommunications 
                equipment'' and inserting ``information technology'';
            (4) in subsection (a)(3)--
                    (A) by striking ``computer systems'' and inserting 
                ``information system''; and
                    (B) by striking ``computer systems security'' and 
                inserting ``information security'';
            (5) in subsection (b)(1) by striking ``computer systems 
        security'' and inserting ``information security'';
            (6) in subsection (b) by striking paragraph (2) and 
        inserting the following:
            ``(2) to advise the Institute and the Director of the 
        Office of Management and Budget on information security and 
        privacy issues pertaining to Federal Government information 
        systems, including through review of proposed standards and 
        guidelines developed under section 20; and'';
            (7) in subsection (b)(3) by inserting ``annually'' after 
        ``report'';
            (8) by inserting after subsection (e) the following new 
        subsection:
    ``(f) The Board shall hold meetings at such locations and at such 
time and place as determined by a majority of the Board.'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (10) by striking subsection (h), as redesignated by 
        paragraph (9), and inserting the following:
    ``(h) As used in this section, the terms ``information system'' and 
``information technology'' have the meanings given in section 20.''.

SEC. 1005. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Federal Computer System Security Training and Plan.--
            (1) Repeal.--Section 11332 of title 40, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 113 of title 40, United States Code, as 
        amended by striking the item relating to section 11332.
    (b) Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001.--The Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398) is amended by striking subtitle G 
of title X (44 U.S.C. 3531 note).
    (c) Paperwork Reduction Act.--(1) Section 3504(g) of title 44, 
United States Code, is amended--
            (A) by adding ``and'' at the end of paragraph (1);
            (B) in paragraph (2)--
                    (i) by striking ``sections 11331 and 11332(b) and 
                (c) of title 40'' and inserting ``section 11331 of 
                title 40 and subchapter II of this title''; and
                    (ii) by striking the semicolon and inserting a 
                period; and
            (C) by striking paragraph (3).
    (2) Section 3505 of such title is amended by adding at the end the 
following:
    ``(c) Inventory of Information Systems.--(1) The head of each 
agency shall develop and maintain an inventory of the information 
systems (including national security systems) operated by or under the 
control of such agency;
    ``(2) The identification of information systems in an inventory 
under this subsection shall include an identification of the interfaces 
between each such system and all other systems or networks, including 
those not operated by or under the control of the agency;
    ``(3) Such inventory shall be--
            ``(A) updated at least annually;
            ``(B) made available to the Comptroller General; and
            ``(C) used to support information resources management, 
        including--
                    ``(i) preparation and maintenance of the inventory 
                of information resources under section 3506(b)(4);
                    ``(ii) information technology planning, budgeting, 
                acquisition, and management under section 3506(h), 
                subtitle III of title 40, and related laws and 
                guidance;
                    ``(iii) monitoring, testing, and evaluation of 
                information security controls under subchapter II;
                    ``(iv) preparation of the index of major 
                information systems required under section 552(g) of 
                title 5, United States Code; and
                    ``(v) preparation of information system inventories 
                required for records management under chapters 21, 29, 
                31, and 33.
    ``(4) The Director shall issue guidance for and oversee the 
implementation of the requirements of this subsection.''.
    (3) Section 3506(g) of such title is amended--
            (A) by adding ``and'' at the end of paragraph (1);
            (B) in paragraph (2)--
                    (i) by striking ``section 11332 of title 40'' and 
                inserting ``subchapter II of this chapter''; and
                    (ii) by striking ``; and'' and inserting a period; 
                and
            (C) by striking paragraph (3).

SEC. 1006. CONSTRUCTION.

    Nothing in this Act, or the amendments made by this Act, affects 
the authority of the National Institute of Standards and Technology or 
the Department of Commerce relating to the development and promulgation 
of standards or guidelines under paragraphs (1) and (2) of section 
20(a) of the National Institute of Standards and Technology Act (15 
U.S.C. 278g-3(a)).

               TITLE XI--DEPARTMENT OF JUSTICE DIVISIONS

          Subtitle A--Executive Office for Immigration Review

SEC. 1101. LEGAL STATUS OF EOIR.

    (a) Existence of EOIR.--There is in the Department of Justice the 
Executive Office for Immigration Review, which shall be subject to the 
direction and regulation of the Attorney General under section 103(g) 
of the Immigration and Nationality Act, as added by section 1102.

SEC. 1102. AUTHORITIES OF THE ATTORNEY GENERAL.

    Section 103 of the Immigration and Nationality Act (8 U.S.C. 1103) 
as amended by this Act, is further amended by--
            (1) amending the heading to read as follows:

  ``powers and duties of the secretary, the under secretary, and the 
                          attorney general'';

            (2) in subsection (a)--
                    (A) by inserting ``Attorney General,'' after 
                ``President,''; and
                    (B) by redesignating paragraphs (8), (9), (8) (as 
                added by section 372 of Public Law 104-208), and (9) 
                (as added by section 372 of Public Law 104-208) as 
                paragraphs (8), (9), (10), and (11), respectively; and
            (3) by adding at the end the following new subsection:
    ``(g) Attorney General.--
            ``(1) In general.--The Attorney General shall have such 
        authorities and functions under this Act and all other laws 
        relating to the immigration and naturalization of aliens as 
        were exercised by the Executive Office for Immigration Review, 
        or by the Attorney General with respect to the Executive Office 
        for Immigration Review, on the day before the effective date of 
        the Immigration Reform, Accountability and Security Enhancement 
        Act of 2002.
            ``(2) Powers.--The Attorney General shall establish such 
        regulations, prescribe such forms of bond, reports, entries, 
        and other papers, issue such instructions, review such 
        administrative determinations in immigration proceedings, 
        delegate such authority, and perform such other acts as the 
        Attorney General determines to be necessary for carrying out 
        this section.''.

SEC. 1103. STATUTORY CONSTRUCTION.

    Nothing in this Act, any amendment made by this Act, or in section 
103 of the Immigration and Nationality Act, as amended by section 1102, 
shall be construed to limit judicial deference to regulations, 
adjudications, interpretations, orders, decisions, judgments, or any 
other actions of the Secretary of Homeland Security or the Attorney 
General.

Subtitle B--Transfer of the Bureau of Alcohol, Tobacco and Firearms to 
                       the Department of Justice

SEC. 1111. BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.

    (a) Establishment.--
            (1) In general.--There is established within the Department 
        of Justice under the general authority of the Attorney General 
        the Bureau of Alcohol, Tobacco, Firearms, and Explosives (in 
        this section referred to as the ``Bureau'').
            (2) Director.--There shall be at the head of the Bureau a 
        Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives 
        (in this subtitle referred to as the ``Director''). The 
        Director shall be appointed by the Attorney General and shall 
        perform such functions as the Attorney General shall direct. 
        The Director shall receive compensation at the rate prescribed 
        by law under section 5314 of title V, United States Code, for 
        positions at level III of the Executive Schedule.
            (3) Coordination.--The Attorney General, acting through the 
        Director and such other officials of the Department of Justice 
        as the Attorney General may designate, shall provide for the 
        coordination of all firearms, explosives, tobacco enforcement, 
        and arson enforcement functions vested in the Attorney General 
        so as to assure maximum cooperation between and among any 
        officer, employee, or agency of the Department of Justice 
        involved in the performance of these and related functions.
            (4) Performance of transferred functions.--The Attorney 
        General may make such provisions as the Attorney General 
        determines appropriate to authorize the performance by any 
        officer, employee, or agency of the Department of Justice of 
        any function transferred to the Attorney General under this 
        section.
    (b) Responsibilities.--Subject to the direction of the Attorney 
General, the Bureau shall be responsible for investigating--
            (1) criminal and regulatory violations of the Federal 
        firearms, explosives, arson, alcohol, and tobacco smuggling 
        laws;
            (2) the functions transferred by subsection (c); and
            (3) any other function related to the investigation of 
        violent crime or domestic terrorism that is delegated to the 
        Bureau by the Attorney General.
    (c) Transfer of Authorities, Functions, Personnel, and Assets to 
the Department of Justice.--
            (1) In general.--Subject to paragraph (2), but 
        notwithstanding any other provision of law, there are 
        transferred to the Department of Justice the authorities, 
        functions, personnel, and assets of the Bureau of Alcohol, 
        Tobacco and Firearms, which shall be maintained as a distinct 
        entity within the Department of Justice, including the related 
        functions of the Secretary of the Treasury.
            (2) Administration and revenue collection functions.--There 
        shall be retained within the Department of the Treasury the 
        authorities, functions, personnel, and assets of the Bureau of 
        Alcohol, Tobacco and Firearms relating to the administration 
        and enforcement of chapters 51 and 52 of the Internal Revenue 
        Code of 1986, sections 4181 and 4182 of the Internal Revenue 
        Code of 1986, and title 27, United States Code.
            (3) Building prospectus.--Prospectus PDC-98W10, giving the 
        General Services Administration the authority for site 
        acquisition, design, and construction of a new headquarters 
        building for the Bureau of Alcohol, Tobacco and Firearms, is 
        transferred, and deemed to apply, to the Bureau of Alcohol, 
        Tobacco, Firearms, and Explosives established in the Department 
        of Justice under subsection (a).
    (d) Tax and Trade Bureau.--
            (1) Establishment.--There is established within the 
        Department of the Treasury the Tax and Trade Bureau.
            (2) Administrator.--The Tax and Trade Bureau shall be 
        headed by an Administrator, who shall perform such duties as 
        assigned by the Under Secretary for Enforcement of the 
        Department of the Treasury. The Administrator shall occupy a 
        career-reserved position within the Senior Executive Service.
            (3) Responsibilities.--The authorities, functions, 
        personnel, and assets of the Bureau of Alcohol, Tobacco and 
        Firearms that are not transferred to the Department of Justice 
        under this section shall be retained and administered by the 
        Tax and Trade Bureau.

SEC. 1112. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) The Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 8D(b)(1) by striking ``Bureau of Alcohol, 
        Tobacco and Firearms'' and inserting ``Tax and Trade Bureau''; 
        and
            (2) in section 9(a)(1)(L)(i), by striking ``Bureau of 
        Alcohol, Tobacco, and Firearms'' and inserting ``Tax and Trade 
        Bureau''.
    (b) Section 1109(c)(2)(A)(i) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (7 U.S.C. 1445-3(c)(2)(A)(i)) is amended by 
striking ``(on ATF Form 3068) by manufacturers of tobacco products to 
the Bureau of Alcohol, Tobacco and Firearms'' and inserting ``by 
manufacturers of tobacco products to the Tax and Trade Bureau''.
    (c) Section 2(4)(J) of the Enhanced Border Security and Visa Entry 
Reform Act of 2002 (Public Law 107-173; 8 U.S.C.A. 1701(4)(J)) is 
amended by striking ``Bureau of Alcohol, Tobacco, and Firearms'' and 
inserting ``Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
Department of Justice''.
    (d) Section 3(1)(E) of the Firefighters' Safety Study Act (15 
U.S.C. 2223b(1)(E)) is amended by striking ``the Bureau of Alcohol, 
Tobacco, and Firearms,'' and inserting ``the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives, Department of Justice,''.
    (e) Chapter 40 of title 18, United States Code, is amended--
            (1) by striking section 841(k) and inserting the following:
    ``(k) `Attorney General' means the Attorney General of the United 
States.'';
    (2) in section 846(a), by striking ``the Attorney General and the 
Federal Bureau of Investigation, together with the Secretary'' and 
inserting ``the Federal Bureau of Investigation, together with the 
Bureau of Alcohol, Tobacco, Firearms, and Explosives''; and
            (3) by striking ``Secretary'' each place it appears and 
        inserting ``Attorney General''.
    (f) Chapter 44 of title 18, United States Code, is amended--
            (1) in section 921(a)(4)(B), by striking ``Secretary'' and 
        inserting ``Attorney General'';
            (2) in section 921(a)(4), by striking ``Secretary of the 
        Treasury'' and inserting ``Attorney General'';
            (3) in section 921(a), by striking paragraph (18) and 
        inserting the following:
            ``(18) The term `Attorney General' means the Attorney 
        General of the United States'';
            (4) in section 922(p)(5)(A), by striking ``after 
        consultation with the Secretary'' and inserting ``after 
        consultation with the Attorney General'';
            (5) in section 923(l), by striking ``Secretary of the 
        Treasury'' and inserting ``Attorney General''; and
            (6) by striking ``Secretary'' each place it appears, except 
        before ``of the Army'' in section 921(a)(4) and before ``of 
        Defense'' in section 922(p)(5)(A), and inserting the term 
        ``Attorney General''.
    (g) Section 1261(a) of title 18, United States Code, is amended to 
read as follows:
    ``(a) The Attorney General--
            ``(1) shall enforce the provisions of this chapter; and
            ``(2) has the authority to issue regulations to carry out 
        the provisions of this chapter.''.
    (h) Section 1952(c) of title 18, United States Code, is amended by 
striking ``Secretary of the Treasury'' and inserting ``Attorney 
General''.
    (i) Chapter 114 of title 18, United States Code, is amended--
            (1) by striking section 2341(5), and inserting the 
        following:
            ``(5) the term `Attorney General' means the Attorney 
        General of the United States''; and
            (2) by striking ``Secretary'' each place it appears and 
        inserting ``Attorney General''.
    (j) Section 6103(i)(8)(A)(i) of the Internal Revenue Code of 1986 
(relating to confidentiality and disclosure of returns and return 
information) is amended by striking ``or the Bureau of Alcohol, Tobacco 
and Firearms'' and inserting ``, the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, Department of Justice, or the Tax and Trade 
Bureau, Department of the Treasury,''.
    (k) Section 7801(a) of the Internal Revenue Code of 1986 (relating 
to the authority of the Department of the Treasury) is amended--
            (1) by striking ``Secretary.--Except'' and inserting 
        ``Secretary.--
            ``(1) In general.--Except''; and
            (2) by adding at the end the following:
            ``(2) Administration and enforcement of certain provisions 
        by attorney general.--
                    ``(A) In general.--The administration and 
                enforcement of the following provisions of this title 
                shall be performed by or under the supervision of the 
                Attorney General; and the term `Secretary' or 
                `Secretary of the Treasury' shall, when applied to 
                those provisions, mean the Attorney General; and the 
                term `internal revenue officer' shall, when applied to 
                those provisions, mean any officer of the Bureau of 
                Alcohol, Tobacco, Firearms, and Explosives so 
                designated by the Attorney General:
                            ``(i) Chapter 53.
                            ``(ii) Chapters 61 through 80, to the 
                        extent such chapters relate to the enforcement 
                        and administration of the provisions referred 
                        to in clause (i).
                    ``(B) Use of existing rulings and 
                interpretations.--Nothing in this Act alters or repeals 
                the rulings and interpretations of the Bureau of 
                Alcohol, Tobacco, and Firearms in effect on the 
                effective date of the Homeland Security Act of 2002, 
                which concern the provisions of this title referred to 
                in subparagraph (A). The Attorney General shall consult 
                with the Secretary to achieve uniformity and 
                consistency in administering provisions under chapter 
                53 of title 26, United States Code.''.
    (l) Section 2006(2) of title 28, United States Code, is amended by 
inserting ``, the Director, Bureau of Alcohol, Tobacco, Firearms, and 
Explosives, Department of Justice,'' after ``the Secretary of the 
Treasury''.
    (m) Section 713 of title 31, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 713. Audit of Internal Revenue Service, Tax and Trade Bureau, 
              and Bureau of Alcohol, Tobacco, Firearms, and 
              Explosives'';
            (2) in subsection (a), by striking ``Bureau of Alcohol, 
        Tobacco, and Firearms,'' and inserting ``Tax and Trade Bureau, 
        Department of the Treasury, and the Bureau of Alcohol, Tobacco, 
        Firearms, and Explosives, Department of Justice''; and
            (3) in subsection (b)
                    (A) in paragraph (1)(B), by striking ``or the 
                Bureau'' and inserting ``or either Bureau'';
                    (B) in paragraph (2)--
                            (i) by striking ``or the Bureau'' and 
                        inserting ``or either Bureau''; and
                            (ii) by striking ``and the Director of the 
                        Bureau'' and inserting ``the Tax and Trade 
                        Bureau, Department of the Treasury, and the 
                        Director of the Bureau of Alcohol, Tobacco, 
                        Firearms, and Explosives, Department of 
                        Justice''; and
                    (C) in paragraph (3), by striking ``or the Bureau'' 
                and inserting ``or either Bureau''.
    (n) Section 9703 of title 31, United States Code, is amended--
            (1) in subsection (a)(2)(B)--
                    (A) in clause (iii)(III), by inserting ``and'' 
                after the semicolon;
                    (B) in clause (iv), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking clause (v);
            (2) by striking subsection (o);
            (3) by redesignating existing subsection (p) as subsection 
        (o); and
            (4) in subsection (o)(1), as redesignated by paragraph (3), 
        by striking ``Bureau of Alcohol, Tobacco and Firearms'' and 
        inserting ``Tax and Trade Bureau''.
    (o) Section 609N(2)(L) of the Justice Assistance Act of 1984 (42 
U.S.C. 10502(2)(L)) is amended by striking ``Bureau of Alcohol, 
Tobacco, and Firearms'' and inserting ``Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, Department of Justice''.
    (p) Section 32401(a) of the Violent Crime Control and Law 
Enforcement Act of 1994 (42 U.S.C. 13921(a)) is amended--
            (1) by striking ``Secretary of the Treasury'' each place it 
        appears and inserting ``Attorney General''; and
            (2) in subparagraph (3)(B), by striking ``Bureau of 
        Alcohol, Tobacco and Firearms'' and inserting ``Bureau of 
        Alcohol, Tobacco, Firearms, and Explosives, Department of 
        Justice''.
    (q) Section 80303 of title 49, United States Code, is amended--
            (1) by inserting ``or, when the violation of this chapter 
        involves contraband described in paragraph (2) or (5) of 
        section 80302(a), the Attorney General'' after ``section 80304 
        of this title.''; and
            (2) by inserting ``, the Attorney General,'' after ``by the 
        Secretary''.
    (r) Section 80304 of title 49, United States Code, is amended--
            (1) in subsection (a), by striking ``(b) and (c)'' and 
        inserting ``(b), (c), and (d)'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting after subsection (c), the following:
    ``(d) Attorney General.--The Attorney General, or officers, 
employees, or agents of the Bureau of Alcohol, Tobacco, Firearms, and 
Explosives, Department of Justice designated by the Attorney General, 
shall carry out the laws referred to in section 80306(b) of this title 
to the extent that the violation of this chapter involves contraband 
described in section 80302 (a)(2) or (a)(5).''.
    (s) Section 103 of the Gun Control Act of 1968 (Public Law 90-618; 
82 Stat. 1226) is amended by striking ``Secretary of the Treasury'' and 
inserting ``Attorney General''.

SEC. 1113. POWERS OF AGENTS OF THE BUREAU OF ALCOHOL, TOBACCO, 
              FIREARMS, AND EXPLOSIVES.

    Chapter 203 of title 18, United States Code, is amended by adding 
the following:
``Sec. 3051. Powers of Special Agents of Bureau of Alcohol, Tobacco, 
              Firearms, and Explosives.
    ``(a) Special agents of the Bureau of Alcohol, Tobacco, Firearms, 
and Explosives, as well as any other investigator or officer charged by 
the Attorney General with the duty of enforcing any of the criminal, 
seizure, or forfeiture provisions of the laws of the United States, may 
carry firearms, serve warrants and subpoenas issued under the authority 
of the United States and make arrests without warrant for any offense 
against the United States committed in their presence, or for any 
felony cognizable under the laws of the United States if they have 
reasonable grounds to believe that the person to be arrested has 
committed or is committing such felony.
    ``(b) Any special agent of the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives may, in respect to the performance of his or 
her duties, make seizures of property subject to forfeiture to the 
United States.
    ``(c)(1) Except as provided in paragraphs (2) and (3), and except 
to the extent that such provisions conflict with the provisions of 
section 983 of title 18, United States Code, insofar as section 983 
applies, the provisions of the Customs laws relating to--
            ``(A) the seizure, summary and judicial forfeiture, and 
        condemnation of property;
            ``(B) the disposition of such property;
            ``(C) the remission or mitigation of such forfeiture; and
            ``(D) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged to have 
been incurred, under any applicable provision of law enforced or 
administered by the Bureau of Alcohol, Tobacco, Firearms, and 
Explosives.
    ``(2) For purposes of paragraph (1), duties that are imposed upon a 
customs officer or any other person with respect to the seizure and 
forfeiture of property under the customs laws of the United States 
shall be performed with respect to seizures and forfeitures of property 
under this section by such officers, agents, or any other person as may 
be authorized or designated for that purpose by the Attorney General.
    ``(3) Notwithstanding any other provision of law, the disposition 
of firearms forfeited by reason of a violation of any law of the United 
States shall be governed by the provisions of section 5872(b) of the 
Internal Revenue Code of 1986.''.

SEC. 1114. EXPLOSIVES TRAINING AND RESEARCH FACILITY.

    (a) Establishment.--There is established within the Bureau an 
Explosives Training and Research Facility at Fort AP Hill, 
Fredericksburg, Virginia.
    (b) Purpose.--The facility established under subsection (a) shall 
be utilized to train Federal, State, and local law enforcement officers 
to--
            (1) investigate bombings and explosions;
            (2) properly handle, utilize, and dispose of explosive 
        materials and devices;
            (3) train canines on explosive detection; and
            (4) conduct research on explosives.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        such sums as may be necessary to establish and maintain the 
        facility established under subsection (a).
            (2) Availability of funds.--Any amounts appropriated 
        pursuant to paragraph (1) shall remain available until 
        expended.

SEC. 1115. PERSONNEL MANAGEMENT DEMONSTRATION PROJECT.

    Notwithstanding any other provision of law, the Personnel 
Management Demonstration Project established under section 102 of title 
I of Division C of the Omnibus Consolidated and Emergency Supplemental 
Appropriations Act for Fiscal Year 1999 (Pub. L. 105-277; 122 Stat. 
2681-585) shall be transferred to the Attorney General of the United 
States for continued use by the Bureau of Alcohol, Tobacco, Firearms, 
and Explosives, Department of Justice, and the Secretary of the 
Treasury for continued use by the Tax and Trade Bureau.

                         Subtitle C--Explosives

SEC. 1121. SHORT TITLE.

    This subtitle may be referred to as the ``Safe Explosives Act''.

SEC. 1122. PERMITS FOR PURCHASERS OF EXPLOSIVES.

    (a) Definitions.--Section 841 of title 18, United States Code, is 
amended--
            (1) by striking subsection (j) and inserting the following:
            ``(j) `Permittee' means any user of explosives for a lawful 
        purpose, who has obtained either a user permit or a limited 
        permit under the provisions of this chapter.''; and
            (2) by adding at the end the following:
            ``(r) `Alien' means any person who is not a citizen or 
        national of the United States.
            ``(s) `Responsible person' means an individual who has the 
        power to direct the management and policies of the applicant 
        pertaining to explosive materials.''.
    (b) Permits for Purchase of Explosives.--Section 842 of title 18, 
United States Code, is amended--
            (1) in subsection (a)(2), by striking ``and'' at the end;
            (2) by striking subsection (a)(3) and inserting the 
        following:
            ``(3) other than a licensee or permittee knowingly--
                    ``(A) to transport, ship, cause to be transported, 
                or receive any explosive materials; or
                    ``(B) to distribute explosive materials to any 
                person other than a licensee or permittee; or
            ``(4) who is a holder of a limited permit--
                    ``(A) to transport, ship, cause to be transported, 
                or receive in interstate or foreign commerce any 
                explosive materials; or
                    ``(B) to receive explosive materials from a 
                licensee or permittee, whose premises are located 
                outside the State of residence of the limited permit 
                holder, or on more than 6 separate occasions, during 
                the period of the permit, to receive explosive 
                materials from 1 or more licensees or permittees whose 
                premises are located within the State of residence of 
                the limited permit holder.''; and
            (3) by striking subsection (b) and inserting the following:
    ``(b) It shall be unlawful for any licensee or permittee to 
knowingly distribute any explosive materials to any person other than--
            ``(1) a licensee;
            ``(2) a holder of a user permit; or
            ``(3) a holder of a limited permit who is a resident of the 
        State where distribution is made and in which the premises of 
        the transferor are located.''.
    (c) Licenses and User Permits.--Section 843(a) of title 18, United 
States Code, is amended--
            (1) in the first sentence--
                    (A) by inserting ``or limited permit'' after ``user 
                permit''; and
                    (B) by inserting before the period at the end the 
                following: ``, including the names of and appropriate 
                identifying information regarding all employees who 
                will be authorized by the applicant to possess 
                explosive materials, as well as fingerprints and a 
                photograph of each responsible person'';
            (2) in the second sentence, by striking ``$200 for each'' 
        and inserting ``$50 for a limited permit and $200 for any 
        other''; and
            (3) by striking the third sentence and inserting ``Each 
        license or user permit shall be valid for not longer than 3 
        years from the date of issuance and each limited permit shall 
        be valid for not longer than 1 year from the date of issuance. 
        Each license or permit shall be renewable upon the same 
        conditions and subject to the same restrictions as the original 
        license or permit, and upon payment of a renewal fee not to 
        exceed one-half of the original fee.''.
    (d) Criteria for Approving Licenses and Permits.--Section 843(b) of 
title 18, United States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
    ``(1) the applicant (or, if the applicant is a corporation, 
partnership, or association, each responsible person with respect to 
the applicant) is not a person described in section 842(i);'';
            (2) in paragraph (4)--
                    (A) by inserting ``(A) the Secretary verifies by 
                inspection or, if the application is for an original 
                limited permit or the first or second renewal of such a 
                permit, by such other means as the Secretary determines 
                appropriate, that'' before ``the applicant''; and
                    (B) by adding at the end the following:
                    ``(B) subparagraph (A) shall not apply to an 
                applicant for the renewal of a limited permit if the 
                Secretary has verified, by inspection within the 
                preceding 3 years, the matters described in 
                subparagraph (A) with respect to the applicant; and'';
            (3) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(6) none of the employees of the applicant who will be 
        authorized by the applicant to possess explosive materials is 
        any person described in section 842(i); and
            ``(7) in the case of a limited permit, the applicant has 
        certified in writing that the applicant will not receive 
        explosive materials on more than 6 separate occasions during 
        the 12-month period for which the limited permit is valid.''.
    (e) Application Approval.--Section 843(c) of title 18, United 
States Code, is amended by striking ``forty-five days'' and inserting 
``90 days for licenses and permits,''.
    (f) Inspection Authority.--Section 843(f) of title 18, United 
States Code, is amended--
            (1) in the first sentence--
                    (A) by striking ``permittees'' and inserting 
                ``holders of user permits''; and
                    (B) by inserting ``licensees and permittees'' 
                before ``shall submit'';
            (2) in the second sentence, by striking ``permittee'' the 
        first time it appears and inserting ``holder of a user 
        permit''; and
            (3) by adding at the end the following: ``The Secretary may 
        inspect the places of storage for explosive materials of an 
        applicant for a limited permit or, at the time of renewal of 
        such permit, a holder of a limited permit, only as provided in 
        subsection (b)(4).
    (g) Posting of Permits.--Section 843(g) of title 18, United States 
Code, is amended by inserting ``user'' before ``permits''.
    (h) Background Checks; Clearances.--Section 843 of title 18, United 
States Code, is amended by adding at the end the following:
    ``(h)(1) If the Secretary receives, from an employer, the name and 
other identifying information of a responsible person or an employee 
who will be authorized by the employer to possess explosive materials 
in the course of employment with the employer, the Secretary shall 
determine whether the responsible person or employee is one of the 
persons described in any paragraph of section 842(i). In making the 
determination, the Secretary may take into account a letter or document 
issued under paragraph (2).
    ``(2)(A) If the Secretary determines that the responsible person or 
the employee is not one of the persons described in any paragraph of 
section 842(i), the Secretary shall notify the employer in writing or 
electronically of the determination and issue, to the responsible 
person or employee, a letter of clearance, which confirms the 
determination.
    ``(B) If the Secretary determines that the responsible person or 
employee is one of the persons described in any paragraph of section 
842(i), the Secretary shall notify the employer in writing or 
electronically of the determination and issue to the responsible person 
or the employee, as the case may be, a document that--
            ``(i) confirms the determination;
            ``(ii) explains the grounds for the determination;
            ``(iii) provides information on how the disability may be 
        relieved; and
            ``(iv) explains how the determination may be appealed.''.
    (i) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect 180 days after the date of enactment of this Act.
            (2) Exception.--Notwithstanding any provision of this Act, 
        a license or permit issued under section 843 of title 18, 
        United States Code, before the date of enactment of this Act, 
        shall remain valid until that license or permit is revoked 
        under section 843(d) or expires, or until a timely application 
        for renewal is acted upon.

SEC. 1123. PERSONS PROHIBITED FROM RECEIVING OR POSSESSING EXPLOSIVE 
              MATERIALS.

    (a) Distribution of Explosives.--Section 842(d) of title 18, United 
States Code, is amended--
            (1) in paragraph (5), by striking ``or'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``or who has been committed to a mental 
        institution;''; and
            (3) by adding at the end the following:
            ``(7) is an alien, other than an alien who--
                    ``(A) is lawfully admitted for permanent residence 
                (as defined in section 101 (a)(20) of the Immigration 
                and Nationality Act); or
                    ``(B) is in lawful nonimmigrant status, is a 
                refugee admitted under section 207 of the Immigration 
                and Nationality Act (8 U.S.C. 1157), or is in asylum 
                status under section 208 of the Immigration and 
                Nationality Act (8 U.S.C. 1158), and--
                            ``(i) is a foreign law enforcement officer 
                        of a friendly foreign government, as determined 
                        by the Secretary in consultation with the 
                        Secretary of State, entering the United States 
                        on official law enforcement business, and the 
                        shipping, transporting, possession, or receipt 
                        of explosive materials is in furtherance of 
                        this official law enforcement business;
                            ``(ii) is a person having the power to 
                        direct or cause the direction of the management 
                        and policies of a corporation, partnership, or 
                        association licensed pursuant to section 
                        843(a), and the shipping, transporting, 
                        possession, or receipt of explosive materials 
                        is in furtherance of such power;
                            ``(iii) is a member of a North Atlantic 
                        Treaty Organization (NATO) or other friendly 
                        foreign military force, as determined by the 
                        Secretary in consultation with the Secretary of 
                        Defense, (whether or not admitted in a 
                        nonimmigrant status) who is present in the 
                        United States under military orders for 
                        training or other military purpose authorized 
                        by the United States, and the shipping, 
                        transporting, possession, or receipt of 
                        explosive materials is in furtherance of the 
                        military purpose; or
                            ``(iv) is lawfully present in the United 
                        States in cooperation with the Director of 
                        Central Intelligence, and the shipment, 
                        transportation, receipt, or possession of the 
                        explosive materials is in furtherance of such 
                        cooperation;
            ``(8) has been discharged from the armed forces under 
        dishonorable conditions;
            ``(9) having been a citizen of the United States, has 
        renounced the citizenship of that person.''.
    (b) Possession of Explosive Materials.--Section 842(i) of title 18, 
United States Code, is amended--
            (1) in paragraph (3), by striking ``or'' at the end; and
            (2) by inserting after paragraph (4) the following:
            ``(5) who is an alien, other than an alien who--
                    ``(A) is lawfully admitted for permanent residence 
                (as that term is defined in section 101(a)(20) of the 
                Immigration and Nationality Act); or
                    ``(B) is in lawful nonimmigrant status, is a 
                refugee admitted under section 207 of the Immigration 
                and Nationality Act (8 U.S.C. 1157), or is in asylum 
                status under section 208 of the Immigration and 
                Nationality Act (8 U.S.C. 1158), and--
                            ``(i) is a foreign law enforcement officer 
                        of a friendly foreign government, as determined 
                        by the Secretary in consultation with the 
                        Secretary of State, entering the United States 
                        on official law enforcement business, and the 
                        shipping, transporting, possession, or receipt 
                        of explosive materials is in furtherance of 
                        this official law enforcement business;
                            ``(ii) is a person having the power to 
                        direct or cause the direction of the management 
                        and policies of a corporation, partnership, or 
                        association licensed pursuant to section 
                        843(a), and the shipping, transporting, 
                        possession, or receipt of explosive materials 
                        is in furtherance of such power;
                            ``(iii) is a member of a North Atlantic 
                        Treaty Organization (NATO) or other friendly 
                        foreign military force, as determined by the 
                        Secretary in consultation with the Secretary of 
                        Defense, (whether or not admitted in a 
                        nonimmigrant status) who is present in the 
                        United States under military orders for 
                        training or other military purpose authorized 
                        by the United States, and the shipping, 
                        transporting, possession, or receipt of 
                        explosive materials is in furtherance of the 
                        military purpose; or
                            ``(iv) is lawfully present in the United 
                        States in cooperation with the Director of 
                        Central Intelligence, and the shipment, 
                        transportation, receipt, or possession of the 
                        explosive materials is in furtherance of such 
                        cooperation;
            ``(6) who has been discharged from the armed forces under 
        dishonorable conditions;
            ``(7) who, having been a citizen of the United States, has 
        renounced the citizenship of that person''; and
            (3) by inserting ``or affecting'' before ``interstate'' 
        each place that term appears.

SEC. 1124. REQUIREMENT TO PROVIDE SAMPLES OF EXPLOSIVE MATERIALS AND 
              AMMONIUM NITRATE.

    Section 843 of title 18, United States Code, as amended by this 
Act, is amended by adding at the end the following:
    ``(i) Furnishing of Samples.--
            ``(1) In general.--Licensed manufacturers and licensed 
        importers and persons who manufacture or import explosive 
        materials or ammonium nitrate shall, when required by letter 
        issued by the Secretary, furnish--
                    ``(A) samples of such explosive materials or 
                ammonium nitrate;
                    ``(B) information on chemical composition of those 
                products; and
                    ``(C) any other information that the Secretary 
                determines is relevant to the identification of the 
                explosive materials or to identification of the 
                ammonium nitrate.
            ``(2) Reimbursement.--The Secretary shall, by regulation, 
        authorize reimbursement of the fair market value of samples 
        furnished pursuant to this subsection, as well as the 
        reasonable costs of shipment.''.

SEC. 1125. DESTRUCTION OF PROPERTY OF INSTITUTIONS RECEIVING FEDERAL 
              FINANCIAL ASSISTANCE.

    Section 844(f)(1) of title 18, United States Code, is amended by 
inserting before the word ``shall'' the following: ``or any institution 
or organization receiving Federal financial assistance,''.

SEC. 1126. RELIEF FROM DISABILITIES.

    Section 845(b) of title 18, United States Code, is amended to read 
as follows:
    ``(b)(1) A person who is prohibited from shipping, transporting, 
receiving, or possessing any explosive under section 842(i) may apply 
to the Secretary for relief from such prohibition.
    ``(2) The Secretary may grant the relief requested under paragraph 
(1) if the Secretary determines that the circumstances regarding the 
applicability of section 842(i), and the applicant's record and 
reputation, are such that the applicant will not be likely to act in a 
manner dangerous to public safety and that the granting of such relief 
is not contrary to the public interest.
    ``(3) A licensee or permittee who applies for relief, under this 
subsection, from the disabilities incurred under this chapter as a 
result of an indictment for or conviction of a crime punishable by 
imprisonment for a term exceeding 1 year shall not be barred by such 
disability from further operations under the license or permit pending 
final action on an application for relief filed pursuant to this 
section.''.

SEC. 1127. THEFT REPORTING REQUIREMENT.

    Section 844 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(p) Theft Reporting Requirement.--
            ``(1) In general.--A holder of a license or permit who 
        knows that explosive materials have been stolen from that 
        licensee or permittee, shall report the theft to the Secretary 
        not later than 24 hours after the discovery of the theft.
            ``(2) Penalty.--A holder of a license or permit who does 
        not report a theft in accordance with paragraph (1), shall be 
        fined not more than $10,000, imprisoned not more than 5 years, 
        or both.''.

SEC. 1128. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated such sums as necessary to 
carry out this subtitle and the amendments made by this subtitle.

           TITLE XII--AIRLINE WAR RISK INSURANCE LEGISLATION

SEC. 1201. AIR CARRIER LIABILITY FOR THIRD PARTY CLAIMS ARISING OUT OF 
              ACTS OF TERRORISM.

    Section 44303 of title 49, United States Code, is amended--
    (1) by inserting ``(a) In general.--'' before ``The Secretary of 
Transportation'';
            (2) by moving the text of paragraph (2) of section 201(b) 
        of the Air Transportation Safety and System Stabilization Act 
        (115 Stat. 235) to the end and redesignating such paragraph as 
        subsection (b);
            (3) in subsection (b) (as so redesignated)--
                    (A) by striking the subsection heading and 
                inserting ``Air Carrier Liability for Third Party 
                Claims Arising Out of Acts of Terrorism.--'';
                    (B) in the first sentence by striking ``the 180-day 
                period following the date of enactment of this Act, the 
                Secretary of Transportation'' and inserting ``the 
                period beginning on September 22, 2001, and ending on 
                December 31, 2003, the Secretary''; and
                    (C) in the last sentence by striking ``this 
                paragraph'' and inserting ``this subsection''.

SEC. 1202. EXTENSION OF INSURANCE POLICIES.

    Section 44302 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(f) Extension of Policies.--
            ``(1) In general.--The Secretary shall extend through 
        August 31, 2003, and may extend through December 31, 2003, the 
        termination date of any insurance policy that the Department of 
        Transportation issued to an air carrier under subsection (a) 
        and that is in effect on the date of enactment of this 
        subsection on no less favorable terms to the air carrier than 
        existed on June 19, 2002; except that the Secretary shall amend 
        the insurance policy, subject to such terms and conditions as 
        the Secretary may prescribe, to add coverage for losses or 
        injuries to aircraft hulls, passengers, and crew at the limits 
        carried by air carriers for such losses and injuries as of such 
        date of enactment and at an additional premium comparable to 
        the premium charged for third-party casualty coverage under 
        such policy.
            ``(2) Special rules.--Notwithstanding paragraph (1)--
                    ``(A) in no event shall the total premium paid by 
                the air carrier for the policy, as amended, be more 
                than twice the premium that the air carrier was paying 
                to the Department of Transportation for its third party 
                policy as of June 19, 2002; and
                    ``(B) the coverage in such policy shall begin with 
                the first dollar of any covered loss that is 
                incurred.''.

SEC. 1203. CORRECTION OF REFERENCE.

    Effective November 19, 2001, section 147 of the Aviation and 
Transportation Security Act (Public Law 107-71) is amended by striking 
``(b)'' and inserting ``(c)''.

SEC. 1204. REPORT.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall transmit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a report that--
                    (A) evaluates the availability and cost of 
                commercial war risk insurance for air carriers and 
                other aviation entities for passengers and third 
                parties;
                    (B) analyzes the economic effect upon air carriers 
                and other aviation entities of available commercial war 
                risk insurance; and
                    (C) describes the manner in which the Department 
                could provide an alternative means of providing 
                aviation war risk reinsurance covering passengers, 
                crew, and third parties through use of a risk-retention 
                group or by other means.

               TITLE XIII--FEDERAL WORKFORCE IMPROVEMENT

                Subtitle A--Chief Human Capital Officers

SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Chief Human Capital Officers Act 
of 2002''.

SEC. 1302. AGENCY CHIEF HUMAN CAPITAL OFFICERS.

    (a) In General.--Part II of title 5, United States Code, is amended 
by inserting after chapter 13 the following:

           ``CHAPTER 14--AGENCY CHIEF HUMAN CAPITAL OFFICERS

``Sec.
``1401. Establishment of agency Chief Human Capital Officers.
``1402. Authority and functions of agency Chief Human Capital Officers.
``Sec. 1401. Establishment of agency Chief Human Capital Officers
    ``The head of each agency referred to under paragraphs (1) and (2) 
of section 901(b) of title 31 shall appoint or designate a Chief Human 
Capital Officer, who shall--
            ``(1) advise and assist the head of the agency and other 
        agency officials in carrying out the agency's responsibilities 
        for selecting, developing, training, and managing a high-
        quality, productive workforce in accordance with merit system 
        principles;
            ``(2) implement the rules and regulations of the President 
        and the Office of Personnel Management and the laws governing 
        the civil service within the agency; and
            ``(3) carry out such functions as the primary duty of the 
        Chief Human Capital Officer.
``Sec. 1402. Authority and functions of agency Chief Human Capital 
              Officers
    ``(a) The functions of each Chief Human Capital Officer shall 
include--
            ``(1) setting the workforce development strategy of the 
        agency;
            ``(2) assessing workforce characteristics and future needs 
        based on the agency's mission and strategic plan;
            ``(3) aligning the agency's human resources policies and 
        programs with organization mission, strategic goals, and 
        performance outcomes;
            ``(4) developing and advocating a culture of continuous 
        learning to attract and retain employees with superior 
        abilities;
            ``(5) identifying best practices and benchmarking studies, 
        and
            ``(6) applying methods for measuring intellectual capital 
        and identifying links of that capital to organizational 
        performance and growth.
    ``(b) In addition to the authority otherwise provided by this 
section, each agency Chief Human Capital Officer--
            ``(1) shall have access to all records, reports, audits, 
        reviews, documents, papers, recommendations, or other material 
        that--
                    ``(A) are the property of the agency or are 
                available to the agency; and
                    ``(B) relate to programs and operations with 
                respect to which that agency Chief Human Capital 
                Officer has responsibilities under this chapter; and
            ``(2) may request such information or assistance as may be 
        necessary for carrying out the duties and responsibilities 
        provided by this chapter from any Federal, State, or local 
        governmental entity.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
chapters for part II of title 5, United States Code, is amended by 
inserting after the item relating to chapter 13 the following:

``14. Agency Chief Human Capital Officers...................    1401''.

SEC. 1303. CHIEF HUMAN CAPITAL OFFICERS COUNCIL.

    (a) Establishment.--There is established a Chief Human Capital 
Officers Council, consisting of--
            (1) the Director of the Office of Personnel Management, who 
        shall act as chairperson of the Council;
            (2) the Deputy Director for Management of the Office of 
        Management and Budget, who shall act as vice chairperson of the 
        Council; and
            (3) the Chief Human Capital Officers of Executive 
        departments and any other members who are designated by the 
        Director of the Office of Personnel Management.
    (b) Functions.--The Chief Human Capital Officers Council shall meet 
periodically to advise and coordinate the activities of the agencies of 
its members on such matters as modernization of human resources 
systems, improved quality of human resources information, and 
legislation affecting human resources operations and organizations.
    (c) Employee Labor Organizations at Meetings.--The Chief Human 
Capital Officers Council shall ensure that representatives of Federal 
employee labor organizations are present at a minimum of 1 meeting of 
the Council each year. Such representatives shall not be members of the 
Council.
    (d) Annual Report.--Each year the Chief Human Capital Officers 
Council shall submit a report to Congress on the activities of the 
Council.

SEC. 1304. STRATEGIC HUMAN CAPITAL MANAGEMENT.

    Section 1103 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(c)(1) The Office of Personnel Management shall design a set of 
systems, including appropriate metrics, for assessing the management of 
human capital by Federal agencies.
    ``(2) The systems referred to under paragraph (1) shall be defined 
in regulations of the Office of Personnel Management and include 
standards for--
            ``(A)(i) aligning human capital strategies of agencies with 
        the missions, goals, and organizational objectives of those 
        agencies; and
            ``(ii) integrating those strategies into the budget and 
        strategic plans of those agencies;
            ``(B) closing skill gaps in mission critical occupations;
            ``(C) ensuring continuity of effective leadership through 
        implementation of recruitment, development, and succession 
        plans;
            ``(D) sustaining a culture that cultivates and develops a 
        high performing workforce;
            ``(E) developing and implementing a knowledge management 
        strategy supported by appropriate investment in training and 
        technology; and
            ``(F) holding managers and human resources officers 
        accountable for efficient and effective human resources 
        management in support of agency missions in accordance with 
        merit system principles.''.

SEC. 1305. EFFECTIVE DATE.

    This subtitle shall take effect 180 days after the date of 
enactment of this Act.

    Subtitle B--Reforms Relating to Federal Human Capital Management

SEC. 1311. INCLUSION OF AGENCY HUMAN CAPITAL STRATEGIC PLANNING IN 
              PERFORMANCE PLANS AND PROGRAMS PERFORMANCE REPORTS.

    (a) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a), by striking paragraph (3) and 
        inserting the following:
            ``(3) provide a description of how the performance goals 
        and objectives are to be achieved, including the operation 
        processes, training, skills and technology, and the human, 
        capital, information, and other resources and strategies 
        required to meet those performance goals and objectives.'';
            (2) by redesignating subsection (f) as subsection (g); and
            (3) by inserting after subsection (e) the following:
    ``(f) With respect to each agency with a Chief Human Capital 
Officer, the Chief Human Capital Officer shall prepare that portion of 
the annual performance plan described under subsection (a)(3).''.
    (b) Program Performance Reports.--Section 1116(d) of title 31, 
United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) by redesignating paragraph (5) as paragraph (6); and
            (3) by inserting after paragraph (4) the following:
            ``(5) include a review of the performance goals and 
        evaluation of the performance plan relative to the agency's 
        strategic human capital management; and''.

SEC. 1312. REFORM OF THE COMPETITIVE SERVICE HIRING PROCESS.

    (a) In General.--Chapter 33 of title 5, United States Code, is 
amended--
            (1) in section 3304(a)--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end of the following:
            ``(3) authority for agencies to appoint, without regard to 
        the provision of sections 3309 through 3318, candidates 
        directly to positions for which--
                    ``(A) public notice has been given; and
                    ``(B) the Office of Personnel Management has 
                determined that there exists a severe shortage of 
                candidates or there is a critical hiring need.
The Office shall prescribe, by regulation, criteria for identifying 
such positions and may delegate authority to make determinations under 
such criteria.''; and
            (2) by inserting after section 3318 the following:
``Sec. 3319. Alternative ranking and selection procedures
    ``(a) The Office, in exercising its authority under section 3304, 
or an agency to which the Office has delegated examining authority 
under section 1104(a)(2), may establish category rating systems for 
evaluating applicants for positions in the competitive service, under 2 
or more quality categories based on merit consistent with regulations 
prescribed by the Office of Personnel Management, rather than assigned 
individual numerical ratings.
    ``(b) Within each quality category established under subsection 
(a), preference-eligibles shall be listed ahead of individuals who are 
not preference eligibles. For other than scientific and professional 
positions at GS-9 of the General Schedule (equivalent or higher), 
qualified preference-eligibles who have a compensable service-connected 
disability of 10 percent or more shall be listed in the highest quality 
category.
    ``(c)(1) An appointing official may select any applicant in the 
highest quality category or, if fewer than 3 candidates have been 
assigned to the highest quality category, in a merged category 
consisting of the highest and the second highest quality categories.
    ``(2) Notwithstanding paragraph (1), the appointing official may 
not pass over a preference-eligible in the same category from which 
selection is made, unless the requirements of section 3317(b) or 
3318(b), as applicable, are satisfied.
    ``(d) Each agency that establishes a category rating system under 
this section shall submit in each of the 3 years following that 
establishment, a report to Congress on that system including 
information on--
            ``(1) the number of employees hired under that system;
            ``(2) the impact that system has had on the hiring of 
        veterans and minorities, including those who are American 
        Indian or Alaska Natives, Asian, Black or African American, and 
        native Hawaiian or other Pacific Islanders; and
            ``(3) the way in which managers were trained in the 
        administration of that system.
    ``(e) The Office of Personnel Management may prescribe such 
regulations as it considers necessary to carry out the provisions of 
this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 5, United States Code, is amended by striking the 
item relating to section 3319 and inserting the following:

``3319. Alternative ranking and selection procedures.''.

SEC. 1313. PERMANENT EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES 
              FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND 
              VOLUNTARY EARLY RETIREMENT.

    (a) Voluntary Separation Incentive Payments.--
            (1) In general.--
                    (A) Amendment to title 5, united states code.--
                Chapter 35 of title 5, United States Code, is amended 
                by inserting after subchapter I the following:

        ``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS

``Sec. 3521. Definitions
    ``In this subchapter, the term--
            ``(1) `agency' means an Executive agency as defined under 
        section 105; and
            ``(2) `employee'--
                    ``(A) means an employee as defined under section 
                2105 employed by an agency and an individual employed 
                by a county committee established under section 8(b)(5) 
                of the Soil Conservation and Domestic Allotment Act (16 
                U.S.C. 590h(b)(5)) who--
                            ``(i) is serving under an appointment 
                        without time limitation; and
                            ``(ii) has been currently employed for a 
                        continuous period of at least 3 years; and
                    ``(B) shall not include--
                            ``(i) a reemployed annuitant under 
                        subchapter III of chapter 83 or 84 or another 
                        retirement system for employees of the 
                        Government;
                            ``(ii) an employee having a disability on 
                        the basis of which such employee is or would be 
                        eligible for disability retirement under 
                        subchapter III of chapter 83 or 84 or another 
                        retirement system for employees of the 
                        Government.
                            ``(iii) an employee who is in receipt of a 
                        decision notice of involuntary separation for 
                        misconduct or unacceptable performance;
                            ``(iv) an employee who has previously 
                        received any voluntary separation incentive 
                        payment from the Federal Government under this 
                        subchapter or any other authority;
                            ``(v) an employee covered by statutory 
                        reemployment rights who is on transfer 
                        employment with another organization; or
                            ``(vi) any employee who--
                                    ``(I) during the 36-month period 
                                preceding the date of separation of 
                                that employee, performed service for 
                                which a student loan repayment benefit 
                                was or is to be paid under section 
                                5379;
                                    ``(II) during the 24-month period 
                                preceding the date of separation of 
                                that employee, performed service for 
                                which a recruitment or relocation bonus 
                                was or is to be paid under section 
                                5753; or
                                    ``(III) during the 12-month period 
                                preceding the date of separation of 
                                that employee, performed service for 
                                which a retention bonus was or is to be 
                                paid under section 5754.
``Sec. 3522. Agency plans; approval
    ``(a) Before obligating any resources for voluntary separation 
incentive payments, the head of each agency shall submit to the Office 
of Personnel Management a plan outlining the intended use of such 
incentive payments and a proposed organizational chart for the agency 
once such incentive payments have been completed.
    ``(b) The plan of an agency under subsection (a) shall include--
            ``(1) the specific positions and functions to be reduced or 
        eliminated;
            ``(2) a description of which categories of employees will 
        be offered incentives;
            ``(3) the time period during which incentives may be paid;
            ``(4) the number and amounts of voluntary separation 
        incentive payments to be offered; and
            ``(5) a description of how the agency will operate without 
        the eliminated positions and functions.
    ``(c) The Director of the Office of Personnel Management shall 
review each agency's plan an may make any appropriate modifications in 
the plan, in consultation with the Director of the Office of Management 
and Budget. A plan under this section may not be implemented without 
the approval of the Directive of the Office of Personnel Management.
``Sec. 3523. Authority to provide voluntary separation incentive 
              payments
    ``(a) A voluntary separation incentive payment under this 
subchapter may be paid to an employee only as provided in the plan of 
an agency established under section 3522.
    ``(b) A voluntary incentive payment--
            ``(1) shall be offered to agency employees on the basis 
        of--
                    ``(A) 1 or more organizational units;
                    ``(B) 1 or more occupational series or levels;
                    ``(C) 1 or more geographical locations;
                    ``(D) skills, knowledge, or other factors related 
                to a position;
                    ``(E) specific periods of time during which 
                eligible employees may elect a voluntary incentive 
                payment; or
                    ``(F) any appropriate combination of such factors;
            ``(2) shall be paid in a lump sum after the employee's 
        separation;
            ``(3) shall be equal to the lesser of--
                    ``(A) an amount equal to the amount the employee 
                would be entitled to receive under section 5595(c) if 
                the employee were entitled to payment under such 
                section (without adjustment for any previous payment 
                made); or
                    ``(B) an amount determined by the agency head, not 
                to exceed $25,000;
            ``(4) may be made only in the case of an employee who 
        voluntarily separates (whether by retirement or resignation) 
        under this subchapter;
            ``(5) shall not be a basis for payment, and shall not be 
        included in the computation, of any other type of Government 
        benefit;
            ``(6) shall not be taken into account in determining the 
        amount of any severance pay to which the employee may be 
        entitled under section 5595, based on another other separation; 
        and
            ``(7) shall be paid from appropriations or funds available 
        for the payment of the basic pay of the employee.
``Sec. 3524. Effect of subsequent employment with the Government
    ``(a) The term `employment'--
            ``(1) in subsection (b) includes employment under a 
        personal services contract (or other direct contract) with the 
        United States Government (other than an entity in the 
        legislative branch); and
            ``(2) in subsection (c) does not include employment under 
        such a contract.
    ``(b) An individual who has received a voluntary separation 
incentive payment under this subchapter and accepts any employment for 
compensation with the Government of the United States with 5 years 
after the date of the separation on which the payment is based shall be 
required to pay, before the individual's first day of employment, the 
entire amount of the incentive payment to the agency that paid the 
incentive payment.
    ``(c)(1) If the employment under this section is with an agency, 
other than the General Accounting Office, the United States Postal 
Service, or the Postal Rate Commission, the Director of the Office of 
Personnel Management may, at the request of the head of the agency, may 
waive the repayment if--
            ``(A) the individual involved possesses unique abilities 
        and is the only qualified applicant available for the position; 
        or
            ``(B) in case of an emergency involving a direct threat to 
        life or property, the individual--
                    ``(i) has skills directly related to resolving the 
                emergency; and
                    ``(ii) will serve on a temporary basis only so long 
                as that individual's services are made necessary by the 
                emergency.
    ``(2) If the employment under this section is with an entity in the 
legislative branch, the head of the entity or the appointing official 
may waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position.
    ``(3) If the employment under this section is with the judicial 
branch, the Director of the Administrative Office of the United States 
Courts may waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
``Sec. 3525. Regulations
    ``The Office of Personnel Management may prescribe regulations to 
carry out this subchapter.''.
                    (B) Technical and conforming amendments.--Chapter 
                35 of title 5, United States Code, is amended--
                            (i) by striking the chapter heading and 
                        inserting the following:

  ``CHAPTER 35--RETENTION PREFERENCE, VOLUNTARY SEPARATION INCENTIVE 
               PAYMENTS, RESTORATION, AND REEMPLOYMENT'';

                        and
                            (ii) in the table of sections by inserting 
                        after the item relating to section 3504 the 
                        following:
        ``subchapter ii--voluntary separation incentive payments
                              ``3521. Definitions.
                              ``3522. Agency plans; approval.
                              ``3523. Authority to provide voluntary 
                                        separation incentive payments.
                              ``3524. Effect of subsequent employment 
                                        with the Government.
                              ``3525. Regulations.''.
            (2) Administrative office of the united states courts.--The 
        Director of the Administrative Office of the United States 
        Courts may, by regulation, establish a program substantially 
        similar to the program established under paragraph (1) for 
        individuals serving in the judicial branch.
            (3) Continuation of other authority.--Any agency exercising 
        any voluntary separation incentive authority in effect on the 
        effective date of this subsection may continue to offer 
        voluntary separation incentives consistent with that authority 
        until that authority expires.
            (4) Effective date.--This subsection shall take effect 60 
        days after the date of enactment of this Act.
    (b) Federal Employee Voluntary Early Retirement.--
            (1) Civil service retirement system.--Section 8336(d)(2) of 
        title 5, United States Code, is amended to read as follows:
            ``(2)(A) has been employed continuously, by the agency in 
        which the employee is serving, for at least the 31-day period 
        ending on the date on which such agency requests the 
        determination referred to in subparagraph (D);
            ``(B) is serving under an appointment that is not time 
        limited;
            ``(C) has not been duly notified that such employee is to 
        be involuntarily separated for misconduct or unacceptable 
        performance;
            ``(D) is separated from the service voluntarily during a 
        period in which, as determined by the office of Personnel 
        Management (upon request of the agency) under regulations 
        prescribed by the Office--
                    ``(i) such agency (or, if applicable, the component 
                in which the employee is serving) is undergoing 
                substantial delayering, substantial reorganization, 
                substantial reductions in force, substantial transfer 
                of function, or other substantial workforce 
                restructuring (or shaping);
                    ``(ii) a significant percentage of employees 
                servicing in such agency (or component) are likely to 
                be separated or subject to an immediate reduction in 
                the rate of basic pay (without regard to subchapter VI 
                of chapter 53, or comparable provisions); or
                    ``(iii) identified as being in positions which are 
                becoming surplus or excess to the agency's future 
                ability to carry out its mission effectively; and
            ``(E) as determined by the agency under regulations 
        prescribed by the Office, is within the scope of the offer of 
        voluntary early retirement, which may be made on the basis of--
                    ``(i) 1 or more organizational units;
                    ``(ii) 1 or more occupational series or levels;
                    ``(iii) 1 or more geographical locations;
                    ``(iv) specific periods;
                    ``(v) skills, knowledge, or other factors related 
                to a position; or
                    ``(vi) any appropriate combination of such 
                factors;''.
            (2) Federal employees' retirement system.--Section 
        8414(b)(1) of title 5, United States Code, is amended by 
        striking subparagraph (B) and inserting the following:
                    ``(B)(i) has been employed continuously, by the 
                agency in which the employee is serving, for at least 
                the 31-day period ending on the date on which such 
                agency requests the determination referred to in clause 
                (iv);
                    ``(ii) is serving under an appointment that is not 
                time limited;
                    ``(iii) has not been duly notified that such 
                employee is to be involuntarily separated for 
                misconduct or unacceptable performance;
                    ``(iv) is separate from the service voluntarily 
                during a period in which, as determined by the Office 
                of Personnel Management (upon request of the agency) 
                under regulations prescribed by the Office--
                            ``(I) such agency (or, if applicable, the 
                        component in which the employee is serving) is 
                        undergoing substantial delayering, substantial 
                        reorganization, substantial reductions in 
                        force, substantial transfer of function, or 
                        other substantial workforce restructuring (or 
                        shaping);
                            ``(II) a significant percentage of 
                        employees serving in such agency (or component) 
                        are likely to be separated or subject to an 
                        immediate reduction in the rate of basic pay 
                        (without regard to subchapter VI of chapter 53, 
                        or comparable provisions); or
                            ``(III) identified as being in positions 
                        which are becoming surplus or excess to the 
                        agency's future ability to carry out its 
                        mission effectively; and
                    ``(v) as determined by the agency under regulations 
                prescribed by the Office, is within the scope of the 
                offer of voluntary early retirement, which may be made 
                on the basis of--
                            ``(I) 1 or more organizational units;
                            ``(II) 1 or more occupational series or 
                        levels;
                            ``(III) 1 or more geographical locations;
                            ``(IV) specific periods;
                            ``(V) skills, knowledge, or other factors 
                        related to a position; or
                            ``(VI) any appropriate combination of such 
                        factors.''.
            (3) General accounting office authority.--The amendments 
        made by this subsection shall not be construed to affect the 
        authority under section 1 of Public Law 106-303 (5 U.S.C. 8336 
        note; 114 State. 1063).
            (4) Technical and conforming amendments.--Section 7001 of 
        the 1998 Supplemental Appropriations and Rescissions Act 
        (Public Law 105-174; 112 Stat. 91) is repealed.
            (5) Regulations.--The Office of Personnel Management may 
        prescribe regulations to carry out this subsection.
    (c) Sense of Congress.--It is the sense of Congress that the 
implementation of this section is intended to reshape the Federal 
workforce and not downsize the Federal workforce.

SEC. 1314. STUDENT VOLUNTEER TRANSIT SUBSIDY.

    (a) In General.--Section 7905(a)(1) of title 5, United States Code, 
is amended by striking ``and a member of a uniformed service'' and 
inserting ``, a member of a uniformed service, and a student who 
provides voluntary services under section 3111''.
    (b) Technical and Conforming Amendment.--Section 3111(c)(1) of 
title 5, United States Code, is amended by striking ``chapter 81 of 
this title'' and inserting ``section 7905 (relating to commuting by 
means other than single-occupancy motor vehicles), chapter 81''.

      Subtitle C--Reforms Relating to the Senior Executive Service

SEC. 1321. REPEAL OF RECERTIFICATION REQUIREMENTS OF SENIOR EXECUTIVES.

    (a) In General.--Title 5, United States Code, is amended--
            (1) in chapter 33--
                    (A) in section 3393(g) by striking ``3393a'';
                    (B) by repealing section 3393a; and
                    (C) in the table of sections by striking the item 
                relating to section 3393a;
            (2) in chapter 35--
                    (A) in section 3592(a)--
                            (i) in paragraph (1), by inserting ``or'' 
                        at the end;
                            (ii) in paragraph (2), by striking ``or'' 
                        at the end;
                            (iii) by striking paragraph (3); and
                            (iv) by striking the last sentence;
                    (B) in section 3593(a), by striking paragraph (2) 
                and inserting the following:
            ``(2) the appointee left the Senior Executive Service for 
        reasons other than misconduct, neglect of duty, malfeasance, or 
        less than fully successful executive performance as determined 
        under subchapter II of chapter 43.''; and
                    (C) in section 3594(b)--
                            (i) in paragraph (1), by inserting ``or'' 
                        at the end;
                            (ii) in paragraph (2), by striking ``or'' 
                        at the end; and
                            (iii) by striking paragraph (3);
            (3) in section 7701(c)(1)(A), by striking ``or removal from 
        the Senior Executive Service for failure to be recertified 
        under section 3393a'';
            (4) in chapter 83--
                    (A) in section 8336(h)(1), by striking ``for 
                failure to be recertified as a senior executive under 
                section 3393a or''; and
                    (B) in section 8339(h), in the first sentence, by 
                striking ``, except that such reduction shall not apply 
                in the case of an employee retiring under section 
                8336(h) for failure to be recertified as a senior 
                executive''; and
            (5) in chapter 84--
                    (A) in section 8414(a)(1), by striking ``for 
                failure to be recertified as a senior executive under 
                section 3393a or''; and
                    (B) in section 8421(a)(2), by striking ``, except 
                that an individual entitled to an annuity under section 
                8414(a) for failure to be recertified as a senior 
                executive shall be entitled to an annuity supplement 
                without regard to such applicable retirement age''.
    (b) Savings Provision.--Notwithstanding the amendments made by 
subsection (a)(2)(A), an appeal under the final sentence of section 
3592(a) of title 5, United States Code, that is pending on the day 
before the effective date of this section--
            (1) shall not abate by reason of the enactment of the 
        amendments made by subsection (a)(2)(A); and
            (2) shall continue as if such amendments had not been 
        enacted.
    (c) Application.--The amendment made by subsection (a)(2)(B) shall 
not apply with respect to an individual who, before the effective date 
of this section, leaves the Senior Executive Service for failure to be 
recertified as a senior executive under section 3393a of title 5, 
United States Code.

SEC. 1322. ADJUSTMENT OF LIMITATION ON TOTAL ANNUAL COMPENSATION.

    (a) In General.--Section 5307 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(d)(1) Notwithstanding any other provision of this section, 
subsection (a)(1) shall be applied by substituting `the total annual 
compensation payable to the Vice President under section 104 of title 
3' for `the annual rate of basic pay payable for level I of the 
Executive Schedule' in the case of any employee who--
            ``(A) is paid under section 5376 or 5383 of this title or 
        section 332(f), 603, or 604 of title 28; and
            ``(B) holds a position in or under an agency which is 
        described in paragraph (2).
    ``(2) An agency described in this paragraph is any agency which, 
for purposes of the calendar year involved, has been certified under 
this subsection as having a performance appraisal system which (as 
designed and applied) makes meaningful distinctions based on relative 
performance.
    ``(3)(A) The Office of Personnel Management and the Office of 
Management and Budget jointly shall promulgate such regulations as may 
be necessary to carry out this subsection, including the criteria and 
procedures in accordance with which any determinations under this 
subsection shall be made.
    ``(B) An agency's certification under this subsection shall be for 
a period of 2 calendar years, except that such certification may be 
terminated at any time, for purposes of either or both of those years, 
upon a finding that the actions of such agency have not remained in 
conformance with applicable requirements.
    ``(C) Any certification or decertification under this subsection 
shall be made by the Office of Personnel Management, with the 
concurrence of the Office of Management and Budget.
    ``(4) Notwithstanding any provision of paragraph (3), any 
regulations, certifications, or other measures necessary to carry out 
this subsection with respect to employees within the judicial branch 
shall be the responsibility of the Director of the Administrative 
Office of the United States Courts. However, the regulations under this 
paragraph shall be consistent with those promulgated under paragraph 
(3).''.
    (b) Conforming Amendments.--(1) Section 5307(a) of title 5, United 
States Code, is amended by inserting ``or as otherwise provided under 
subsection (d),'' after ``under law,''.
    (2) Section 5307(c) of such title is amended by striking ``this 
section,'' and inserting ``this section (subject to subsection (d)),''.

                     Subtitle D--Academic Training

SEC. 1331. ACADEMIC TRAINING.

    (a) Academic Degree Training.--Section 4107 of title 5, United 
States Code, is amended to read as follows:
``Sec.  4107. Academic degree training
    ``(a) Subject to subsection (b), an agency may select and assign an 
employee to academic degree training and may pay or reimburse the costs 
of academic degree training from appropriated or other available funds 
if such training--
            ``(1) contributes significantly to--
                    ``(A) meeting an identified agency training need;
                    ``(B) resolving an identified agency staffing 
                problem; or
                    ``(C) accomplishing goals in the strategic plan of 
                the agency;
            ``(2) is part of a planned, systemic, and coordinated 
        agency employee development program linked to accomplishing the 
        strategic goals of the agency; and
            ``(3) is accredited and is provided by a college or 
        university that is accredited by a nationally recognized body.
    ``(b) In exercising authority under subsection (a), an agency 
shall--
            ``(1) consistent with the merit system principles set forth 
        in paragraphs (2) and (7) of section 2301(b), take into 
        consideration the need to--
                    ``(A) maintain a balanced workforce in which women, 
                members of racial and ethnic minority groups, and 
                persons with disabilities are appropriately represented 
                in Government service; and
                    ``(B) provide employees effective education and 
                training to improve organizational and individual 
                performance;
            ``(2) assure that the training is not for the sole purpose 
        of providing an employee an opportunity to obtain an academic 
        degree or qualify for appointment to a particular position for 
        which the academic degree is a basic requirement;
            ``(3) assure that no authority under this subsection is 
        exercised on behalf of any employee occupying or seeking to 
        qualify for--
                    ``(A) a noncareer appointment in the senior 
                Executive Service; or
                    ``(B) appointment to any position that is excepted 
                from the competitive service because of its 
                confidential policy-determining, policy-making or 
                policy-advocating character; and
            ``(4) to the greatest extent practicable, facilitate the 
        use of online degree training.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 41 of title 5, United States Code, is amended by striking the 
item relating to section 4107 and inserting the following:

``4107. Academic degree training.''.

SEC. 1332. MODIFICATIONS TO NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Findings and Policies.--
            (1) Findings.--Congress finds that--
                    (A) the United States Government actively 
                encourages and financially supports the training, 
                education, and development of many United States 
                citizens;
                    (B) as a condition of some of those supports, many 
                of those citizens have an obligation to seek either 
                compensated or uncompensated employment in the Federal 
                sector; and
                    (C) it is in the United States national interest to 
                maximize the return to the Nation of funds invested in 
                the development of such citizens by seeking to employ 
                them in the Federal sector.
            (2) Policy.--It shall be the policy of the United States 
        Government to--
                    (A) establish procedures for ensuring that United 
                States citizens who have incurred service obligations 
                as the result of receiving financial support for 
                education and training from the United States 
                Government and have applied for Federal positions are 
                considered in all recruitment and hiring initiatives of 
                Federal departments, bureaus, agencies, and offices; 
                and
                    (B) advertise and open all Federal positions to 
                United States citizens who have incurred service 
                obligations with the United States Government as the 
                result of receiving financial support for education and 
                training from the United States Government.
    (b) Fulfillment of Service Requirement if National Security 
Positions Are Unavailable.--Section 802(b)(2) of the David L. Boren 
National Security Education Act of 1991 (50 U.S.C. 1902) is amended--
            (1) in subparagraph (A), by striking clause (ii) and 
        inserting the following:
                            ``(ii) if the recipient demonstrates to the 
                        Secretary (in accordance with such regulations) 
                        that no national security position in an agency 
                        or office of the Federal Government having 
                        national security responsibilities is 
                        available, work in other offices or agencies of 
                        the Federal Government or in the field of 
                        higher education in a discipline relating to 
                        the foreign country, foreign language, area 
                        study, or international field of study for 
                        which the scholarship was awarded, for a period 
                        specified by the Secretary, which period shall 
                        be determined in accordance with clause (i); 
                        or''; and
            (2) in subparagraph (B), by striking clause (ii) and 
        inserting the following:
                            ``(ii) if the recipient demonstrates to the 
                        Secretary (in accordance with such regulations) 
                        that no national security position is available 
                        upon the completion of the degree, work in 
                        other offices or agencies of the Federal 
                        Government or in the field of higher education 
                        in a discipline relating to foreign country, 
                        foreign language, area study, or international 
                        field of study for which the fellowship was 
                        awarded, for a period specified by the 
                        Secretary, which period shall be determined in 
                        accordance with clause (i); and''.

               TITLE XIV--ARMING PILOTS AGAINST TERRORISM

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Arming Pilots Against Terrorism 
Act''.

SEC. 1402. FEDERAL FLIGHT DECK OFFICER PROGRAM.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 44921. Federal flight deck officer program
    ``(a) Establishment.--The Under Secretary of Transportation for 
Security shall establish a program to deputize volunteer pilots of air 
carriers providing passenger air transportation or intrastate passenger 
air transportation as Federal law enforcement officers to defend the 
flight decks of aircraft of such air carriers against acts of criminal 
violence or air piracy. Such officers shall be known as `Federal flight 
deck officers'.
    ``(b) Procedural Requirements.--
            ``(1) In general.--Not later than 3 months after the date 
        of enactment of this section, the Under Secretary shall 
        establish procedural requirements to carry out the program 
        under this section.
            ``(2) Commencement of program.--Beginning 3 months after 
        the date of enactment of this section, the Under Secretary 
        shall begin the process of training and deputizing pilots who 
        are qualified to be Federal flight deck officers as Federal 
        flight deck officers under the program.
            ``(3) Issues to be addressed.--The procedural requirements 
        established under paragraph (1) shall address the following 
        issues:
                    ``(A) The type of firearm to be used by a Federal 
                flight deck officer.
                    ``(B) The type of ammunition to be used by a 
                Federal flight deck officer.
                    ``(C) The standards and training needed to qualify 
                and requalify as a Federal flight deck officer.
                    ``(D) The placement of the firearm of a Federal 
                flight deck officer on board the aircraft to ensure 
                both its security and its ease of retrieval in an 
                emergency.
                    ``(E) An analysis of the risk of catastrophic 
                failure of an aircraft as a result of the discharge 
                (including an accidental discharge) of a firearm to be 
                used in the program into the avionics, electrical 
                systems, or other sensitive areas of the aircraft.
                    ``(F) The division of responsibility between pilots 
                in the event of an act of criminal violence or air 
                piracy if only 1 pilot is a Federal flight deck officer 
                and if both pilots are Federal flight deck officers.
                    ``(G) Procedures for ensuring that the firearm of a 
                Federal flight deck officer does not leave the cockpit 
                if there is a disturbance in the passenger cabin of the 
                aircraft or if the pilot leaves the cockpit for 
                personal reasons.
                    ``(H) Interaction between a Federal flight deck 
                officer and a Federal air marshal on board the 
                aircraft.
                    ``(I) The process for selection of pilots to 
                participate in the program based on their fitness to 
                participate in the program, including whether an 
                additional background check should be required beyond 
                that required by section 44936(a)(1).
                    ``(J) Storage and transportation of firearms 
                between flights, including international flights, to 
                ensure the security of the firearms, focusing 
                particularly on whether such security would be enhanced 
                by requiring storage of the firearm at the airport when 
                the pilot leaves the airport to remain overnight away 
                from the pilot's base airport.
                    ``(K) Methods for ensuring that security personnel 
                will be able to identify whether a pilot is authorized 
                to carry a firearm under the program.
                    ``(L) Methods for ensuring that pilots (including 
                Federal flight deck officers) will be able to identify 
                whether a passenger is a law enforcement officer who is 
                authorized to carry a firearm aboard the aircraft.
                    ``(M) Any other issues that the Under Secretary 
                considers necessary.
                    ``(N) The Under Secretary's decisions regarding the 
                methods for implementing each of the foregoing 
                procedural requirements shall be subject to review only 
                for abuse of discretion.
            ``(4) Preference.--In selecting pilots to participate in 
        the program, the Under Secretary shall give preference to 
        pilots who are former military or law enforcement personnel.
            ``(5) Classified information.--Notwithstanding section 552 
        of title 5 but subject to section 40119 of this title, 
        information developed under paragraph (3)(E) shall not be 
        disclosed.
            ``(6) Notice to congress.--The Under Secretary shall 
        provide notice to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate after completing the analysis required by paragraph 
        (3)(E).
            ``(7) Minimization of risk.--If the Under Secretary 
        determines as a result of the analysis under paragraph (3)(E) 
        that there is a significant risk of the catastrophic failure of 
        an aircraft as a result of the discharge of a firearm, the 
        Under Secretary shall take such actions as may be necessary to 
        minimize that risk.
    ``(c) Training, Supervision, and Equipment.--
            ``(1) In general.--The Under Secretary shall only be 
        obligated to provide the training, supervision, and equipment 
        necessary for a pilot to be a Federal flight deck officer under 
        this section at no expense to the pilot or the air carrier 
        employing the pilot.
            ``(2) Training.--
                    ``(A) In general.--The Under Secretary shall base 
                the requirements for the training of Federal flight 
                deck officers under subsection (b) on the training 
                standards applicable to Federal air marshals; except 
                that the Under Secretary shall take into account the 
                differing roles and responsibilities of Federal flight 
                deck officers and Federal air marshals.
                    ``(B) Elements.--The training of a Federal flight 
                deck officer shall include, at a minimum, the following 
                elements:
                            ``(i) Training to ensure that the officer 
                        achieves the level of proficiency with a 
                        firearm required under subparagraph (C)(i).
                            ``(ii) Training to ensure that the officer 
                        maintains exclusive control over the officer's 
                        firearm at all times, including training in 
                        defensive maneuvers.
                            ``(iii) Training to assist the officer in 
                        determining when it is appropriate to use the 
                        officer's firearm and when it is appropriate to 
                        use less than lethal force.
                    ``(C) Training in use of firearms.--
                            ``(i) Standard.--In order to be deputized 
                        as a Federal flight deck officer, a pilot must 
                        achieve a level of proficiency with a firearm 
                        that is required by the Under Secretary. Such 
                        level shall be comparable to the level of 
                        proficiency required of Federal air marshals.
                            ``(ii) Conduct of training.--The training 
                        of a Federal flight deck officer in the use of 
                        a firearm may be conducted by the Under 
                        Secretary or by a firearms training facility 
                        approved by the Under Secretary.
                            ``(iii) Requalification.--The Under 
                        Secretary shall require a Federal flight deck 
                        officer to requalify to carry a firearm under 
                        the program. Such requalification shall occur 
                        at an interval required by the Under Secretary.
    ``(d) Deputization.--
            ``(1) In general.--The Under Secretary may deputize, as a 
        Federal flight deck officer under this section, a pilot who 
        submits to the Under Secretary a request to be such an officer 
        and whom the Under Secretary determines is qualified to be such 
        an officer.
            ``(2) Qualification.--A pilot is qualified to be a Federal 
        flight deck officer under this section if--
                    ``(A) the pilot is employed by an air carrier;
                    ``(B) the Under Secretary determines (in the Under 
                Secretary's discretion) that the pilot meets the 
                standards established by the Under Secretary for being 
                such an officer; and
                    ``(C) the Under Secretary determines that the pilot 
                has completed the training required by the Under 
                Secretary.
            ``(3) Deputization by other federal agencies.--The Under 
        Secretary may request another Federal agency to deputize, as 
        Federal flight deck officers under this section, those pilots 
        that the Under Secretary determines are qualified to be such 
        officers.
            ``(4) Revocation.--The Under Secretary may, (in the Under 
        Secretary's discretion) revoke the deputization of a pilot as a 
        Federal flight deck officer if the Under Secretary finds that 
        the pilot is no longer qualified to be such an officer.
    ``(e) Compensation.--Pilots participating in the program under this 
section shall not be eligible for compensation from the Federal 
Government for services provided as a Federal flight deck officer. The 
Federal Government and air carriers shall not be obligated to 
compensate a pilot for participating in the program or for the pilot's 
training or qualification and requalification to carry firearms under 
the program.
    ``(f) Authority To Carry Firearms.--
            ``(1) In general.--The Under Secretary shall authorize a 
        Federal flight deck officer to carry a firearm while engaged in 
        providing air transportation or intrastate air transportation. 
        Notwithstanding subsection (c)(1), the officer may purchase a 
        firearm and carry that firearm aboard an aircraft of which the 
        officer is the pilot in accordance with this section if the 
        firearm is of a type that may be used under the program.
            ``(2) Preemption.--Notwithstanding any other provision of 
        Federal or State law, a Federal flight deck officer, whenever 
        necessary to participate in the program, may carry a firearm in 
        any State and from 1 State to another State.
            ``(3) Carrying firearms outside united states.--In 
        consultation with the Secretary of State, the Under Secretary 
        may take such action as may be necessary to ensure that a 
        Federal flight deck officer may carry a firearm in a foreign 
        country whenever necessary to participate in the program.
    ``(g) Authority To Use Force.--Notwithstanding section 44903(d), 
the Under Secretary shall prescribe the standards and circumstances 
under which a Federal flight deck officer may use, while the program 
under this section is in effect, force (including lethal force) against 
an individual in the defense of the flight deck of an aircraft in air 
transportation or intrastate air transportation.
    ``(h) Limitation on Liability.--
            ``(1) Liability of air carriers.--An air carrier shall not 
        be liable for damages in any action brought in a Federal or 
        State court arising out of a Federal flight deck officer's use 
        of or failure to use a firearm.
            ``(2) Liability of federal flight deck officers.--A Federal 
        flight deck officer shall not be liable for damages in any 
        action brought in a Federal or State court arising out of the 
        acts or omissions of the officer in defending the flight deck 
        of an aircraft against acts of criminal violence or air piracy 
        unless the officer is guilty of gross negligence or willful 
        misconduct.
            ``(3) Liability of federal government.--For purposes of an 
        action against the United States with respect to an act or 
        omission of a Federal flight deck officer in defending the 
        flight deck of an aircraft, the officer shall be treated as an 
        employee of the Federal Government under chapter 171 of title 
        28, relating to tort claims procedure.
    ``(i) Procedures Following Accidental Discharges.--If an accidental 
discharge of a firearm under the pilot program results in the injury or 
death of a passenger or crew member on an aircraft, the Under 
Secretary--
            ``(1) shall revoke the deputization of the Federal flight 
        deck officer responsible for that firearm if the Under 
        Secretary determines that the discharge was attributable to the 
        negligence of the officer; and
            ``(2) if the Under Secretary determines that a shortcoming 
        in standards, training, or procedures was responsible for the 
        accidental discharge, the Under Secretary may temporarily 
        suspend the program until the shortcoming is corrected.
    ``(j) Limitation on Authority of Air Carriers.--No air carrier 
shall prohibit or threaten any retaliatory action against a pilot 
employed by the air carrier from becoming a Federal flight deck officer 
under this section. No air carrier shall--
            ``(1) prohibit a Federal flight deck officer from piloting 
        an aircraft operated by the air carrier, or
            ``(2) terminate the employment of a Federal flight deck 
        officer, solely on the basis of his or her volunteering for or 
        participating in the program under this section.
    ``(k) Applicability.--
            ``(1) Exemption.--This section shall not apply to air 
        carriers operating under part 135 of title 14, Code of Federal 
        Regulations, and to pilots employed by such carriers to the 
        extent that such carriers and pilots are covered by section 
        135.119 of such title or any successor to such section.
            ``(2) Pilot defined.--The term `pilot' means an individual 
        who has final authority and responsibility for the operation 
        and safety of the flight or, if more than 1 pilot is required 
        for the operation of the aircraft or by the regulations under 
        which the flight is being conducted, the individual designated 
        as second in command.''.
    (b) Conforming Amendments.--
            (1) Chapter analysis.--The analysis for such chapter is 
        amended by inserting after the item relating to section 44920 
        the following:

``44921.  Federal flight deck officer program.''.
            (2) Flight deck security.--Section 128 of the Aviation and 
        Transportation Security Act (Public Law 107-71) is repealed.
    (c) Federal Air Marshal Program.--
            (1) Sense of congress.--It is the sense of Congress that 
        the Federal air marshal program is critical to aviation 
        security.
            (2) Limitation on statutory construction.--Nothing in this 
        Act, including any amendment made by this Act, shall be 
        construed as preventing the Under Secretary of Transportation 
        for Security from implementing and training Federal air 
        marshals.

SEC. 1403. CREW TRAINING.

    (a) In General.--Section 44918(e) of title 49, United States Code, 
is amended--
            (1) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) In general.--The Under Secretary'';
            (2) by adding at the end the following:
            ``(2) Additional requirements.--In updating the training 
        guidance, the Under Secretary, in consultation with the 
        Administrator, shall issue a rule to--
                    ``(A) require both classroom and effective hands-on 
                situational training in the following elements of self 
                defense:
                            ``(i) recognizing suspicious activities and 
                        determining the seriousness of an occurrence;
                            ``(ii) deterring a passenger who might 
                        present a problem;
                            ``(iii) crew communication and 
                        coordination;
                            ``(iv) the proper commands to give to 
                        passengers and attackers;
                            ``(v) methods to subdue and restrain an 
                        attacker;
                            ``(vi) use of available items aboard the 
                        aircraft for self-defense;
                            ``(vii) appropriate and effective responses 
                        to defend oneself, including the use of force 
                        against an attacker;
                            ``(viii) use of protective devices assigned 
                        to crew members (to the extent such devices are 
                        approved by the Administrator or Under 
                        Secretary);
                            ``(ix) the psychology of terrorists to cope 
                        with their behavior and passenger responses to 
                        that behavior;
                            ``(x) how to respond to aircraft maneuvers 
                        that may be authorized to defend against an act 
                        of criminal violence or air piracy;
                    ``(B) require training in the proper conduct of a 
                cabin search, including the duty time required to 
                conduct the search;
                    ``(C) establish the required number of hours of 
                training and the qualifications for the training 
                instructors;
                    ``(D) establish the intervals, number of hours, and 
                elements of recurrent training;
                    ``(E) ensure that air carriers provide the initial 
                training required by this paragraph within 24 months of 
                the date of enactment of this subparagraph; and
                    ``(F) ensure that no person is required to 
                participate in any hands-on training activity that that 
                person believes will have an adverse impact on his or 
                her health or safety.
            ``(3) Responsibility of under secretary.--(A) 
        Consultation.--In developing the rule under paragraph (2), the 
        Under Secretary shall consult with law enforcement personnel 
        and security experts who have expertise in self-defense 
        training, terrorism experts, and representatives of air 
        carriers, the provider of self-defense training for Federal air 
        marshals, flight attendants, labor organizations representing 
        flight attendants, and educational institutions offering law 
        enforcement training programs.
                    ``(B) Designation of official.--The Under Secretary 
                shall designate an official in the Transportation 
                Security Administration to be responsible for 
                overseeing the implementation of the training program 
                under this subsection.
                    ``(C) Necessary resources and knowledge.--The Under 
                Secretary shall ensure that employees of the 
                Administration responsible for monitoring the training 
                program have the necessary resources and knowledge.''; 
                and
            (3) by aligning the remainder of the text of paragraph (1) 
        (as designated by paragraph (1) of this section) with 
        paragraphs (2) and (3) (as added by paragraph (2) of this 
        section).
    (b) Enhance Security Measures.--Section 109(a) of the Aviation and 
Transportation Security Act (49 U.S.C. 114 note; 115 Stat. 613-614) is 
amended by adding at the end the following:
            ``(9) Require that air carriers provide flight attendants 
        with a discreet, hands-free, wireless method of communicating 
        with the pilots.''.
    (c) Benefits and Risks of Providing Flight Attendants With 
Nonlethal Weapons.--
            (1) Study.--The Under Secretary of Transportation for 
        Security shall conduct a study to evaluate the benefits and 
        risks of providing flight attendants with nonlethal weapons to 
        aide in combating air piracy and criminal violence on 
        commercial airlines.
            (2) Report.--Not later than 6 months after the date of 
        enactment of this Act, the Under Secretary shall transmit to 
        Congress a report on the results of the study.

SEC. 1404. COMMERCIAL AIRLINE SECURITY STUDY.

    (a) Study.--The Secretary of Transportation shall conduct a study 
of the following:
            (1) The number of armed Federal law enforcement officers 
        (other than Federal air marshals), who travel on commercial 
        airliners annually and the frequency of their travel.
            (2) The cost and resources necessary to provide such 
        officers with supplemental training in aircraft anti-terrorism 
        training that is comparable to the training that Federal air 
        marshals are provided.
            (3) The cost of establishing a program at a Federal law 
        enforcement training center for the purpose of providing new 
        Federal law enforcement recruits with standardized training 
        comparable to the training that Federal air marshals are 
        provided.
            (4) The feasibility of implementing a certification program 
        designed for the purpose of ensuring Federal law enforcement 
        officers have completed the training described in paragraph (2) 
        and track their travel over a 6-month period.
            (5) The feasibility of staggering the flights of such 
        officers to ensure the maximum amount of flights have a 
        certified trained Federal officer on board.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report on the 
results of the study. The report may be submitted in classified and 
redacted form.

SEC. 1405. AUTHORITY TO ARM FLIGHT DECK CREW WITH LESS-THAN-LETHAL 
              WEAPONS.

    (a) In General.--Section 44903(i) of title 49, United States Code 
(as redesignated by section 6 of this Act) is amended by adding at the 
end the following:
            ``(3) Request of air carriers to use less-than-lethal 
        weapons.--If, after the date of enactment of this paragraph, 
        the Under Secretary receives a request from an air carrier for 
        authorization to allow pilots of the air carrier to carry less-
        than-lethal weapons, the Under Secretary shall respond to that 
        request within 90 days.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in paragraph (1) by striking ``Secretary'' the first 
        and third places it appears and inserting ``Under Secretary''; 
        and
            (2) in paragraph (2) by striking ``Secretary'' each place 
        it appears and inserting ``Under Secretary''.

SEC. 1406. TECHNICAL AMENDMENTS.

    Section 44903 of title 49, United States Code, is amended--
            (1) by redesignating subsection (i) (relating to short-term 
        assessment and deployment of emerging security technologies and 
        procedures) as subsection (j);
            (2) by redesignating the second subsection (h) (relating to 
        authority to arm flight deck crew with less-than-lethal 
        weapons) as subsection (i); and
            (3) by redesignating the third subsection (h) (relating to 
        limitation on liability for acts to thwart criminal violence 
        for aircraft piracy) as subsection (k).

                          TITLE XV--TRANSITION

                    Subtitle A--Reorganization Plan

SEC. 1501. DEFINITIONS.

    For purposes of this title:
            (1) The term ``agency'' includes any entity, organizational 
        unit, program, or function.
            (2) The term ``transition period'' means the 12-month 
        period beginning on the effective date of this Act.

SEC. 1502. REORGANIZATION PLAN.

    (a) Submission of Plan.--Not later than 60 days after the date of 
the enactment of this Act, the President shall transmit to the 
appropriate congressional committees a reorganization plan regarding 
the following:
            (1) The transfer of agencies, personnel, assets, and 
        obligations to the Department pursuant to this Act.
            (2) Any consolidation, reorganization, or streamlining of 
        agencies transferred to the Department pursuant to this Act.
    (b) Plan Elements.--The plan transmitted under subsection (a) shall 
contain, consistent with this Act, such elements as the President deems 
appropriate, including the following:
            (1) Identification of any functions of agencies transferred 
        to the Department pursuant to this Act that will not be 
        transferred to the Department under the plan.
            (2) Specification of the steps to be taken by the Secretary 
        to organize the Department, including the delegation or 
        assignment of functions transferred to the Department among 
        officers of the Department in order to permit the Department to 
        carry out the functions transferred under the plan.
            (3) Specification of the funds available to each agency 
        that will be transferred to the Department as a result of 
        transfers under the plan.
            (4) Specification of the proposed allocations within the 
        Department of unexpended funds transferred in connection with 
        transfers under the plan.
            (5) Specification of any proposed disposition of property, 
        facilities, contracts, records, and other assets and 
        obligations of agencies transferred under the plan.
            (6) Specification of the proposed allocations within the 
        Department of the functions of the agencies and subdivisions 
        that are not related directly to securing the homeland.
    (c) Modification of Plan.--The President may, on the basis of 
consultations with the appropriate congressional committees, modify or 
revise any part of the plan until that part of the plan becomes 
effective in accordance with subsection (d).
    (d) Effective Date.--
            (1) In general.--The reorganization plan described in this 
        section, including any modifications or revisions of the plan 
        under subsection (d), shall become effective for an agency on 
        the earlier of--
                    (A) the date specified in the plan (or the plan as 
                modified pursuant to subsection (d)), except that such 
                date may not be earlier than 90 days after the date the 
                President has transmitted the reorganization plan to 
                the appropriate congressional committees pursuant to 
                subsection (a); or
                    (B) the end of the transition period.
            (2) Statutory construction.--Nothing in this subsection may 
        be construed to require the transfer of functions, personnel, 
        records, balances of appropriations, or other assets of an 
        agency on a single date.
            (3) Supersedes existing law.--Paragraph (1) shall apply 
        notwithstanding section 905(b) of title 5, United States Code.

SEC. 1503. REVIEW OF CONGRESSIONAL COMMITTEE STRUCTURES.

    It is the sense of Congress that each House of Congress should 
review its committee structure in light of the reorganization of 
responsibilities within the executive branch by the establishment of 
the Department.

                  Subtitle B--Transitional Provisions

SEC. 1511. TRANSITIONAL AUTHORITIES.

    (a) Provision of Assistance by Officials.--Until the transfer of an 
agency to the Department, any official having authority over or 
functions relating to the agency immediately before the effective date 
of this Act shall provide to the Secretary such assistance, including 
the use of personnel and assets, as the Secretary may request in 
preparing for the transfer and integration of the agency into the 
Department.
    (b) Services and Personnel.--During the transition period, upon the 
request of the Secretary, the head of any executive agency may, on a 
reimbursable basis, provide services or detail personnel to assist with 
the transition.
    (c) Acting Officials.--(1) During the transition period, pending 
the advice and consent of the Senate to the appointment of an officer 
required by this Act to be appointed by and with such advice and 
consent, the President may designate any officer whose appointment was 
required to be made by and with such advice and consent and who was 
such an officer immediately before the effective date of this Act (and 
who continues in office) or immediately before such designation, to act 
in such office until the same is filled as provided in this Act. While 
so acting, such officers shall receive compensation at the higher of--
            (A) the rates provided by this Act for the respective 
        offices in which they act; or
            (B) the rates provided for the offices held at the time of 
        designation.
    (2) Nothing in this Act shall be understood to require the advice 
and consent of the Senate to the appointment by the President to a 
position in the Department of any officer whose agency is transferred 
to the Department pursuant to this Act and whose duties following such 
transfer are germane to those performed before such transfer.
    (d) Transfer of Personnel, Assets, Obligations, and Functions.--
Upon the transfer of an agency to the Department--
            (1) the personnel, assets, and obligations held by or 
        available in connection with the agency shall be transferred to 
        the Secretary for appropriate allocation, subject to the 
        approval of the Director of the Office of Management and Budget 
        and in accordance with the provisions of section 1531(a)(2) of 
        title 31, United States Code; and
            (2) the Secretary shall have all functions relating to the 
        agency that any other official could by law exercise in 
        relation to the agency immediately before such transfer, and 
        shall have in addition all functions vested in the Secretary by 
        this Act or other law.
    (e) Prohibition on Use of Transportation Trust Funds.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, no funds derived from the Highway Trust Fund, Airport 
        and Airway Trust Fund, Inland Waterway Trust Fund, or Harbor 
        Maintenance Trust Fund, may be transferred to, made available 
        to, or obligated by the Secretary or any other official in the 
        Department.
            (2) Limitation.--This subsection shall not apply to 
        security-related funds provided to the Federal Aviation 
        Administration for fiscal years preceding fiscal year 2003 for 
        (A) operations, (B) facilities and equipment, or (C) research, 
        engineering, and development.

SEC. 1512. SAVINGS PROVISIONS.

    (a) Completed Administrative Actions.--(1) Completed administrative 
actions of an agency shall not be affected by the enactment of this Act 
or the transfer of such agency to the Department, but shall continue in 
effect according to their terms until amended, modified, superseded, 
terminated, set aside, or revoked in accordance with law by an officer 
of the United States or a court of competent jurisdiction, or by 
operation of law.
    (2) For purposes of paragraph (1), the term ``completed 
administrative action'' includes orders, determinations, rules, 
regulations, personnel actions, permits, agreements, grants, contracts, 
certificates, licenses, registrations, and privileges.
    (b) Pending Proceedings.--Subject to the authority of the Secretary 
under this Act--
            (1) pending proceedings in an agency, including notices of 
        proposed rulemaking, and applications for licenses, permits, 
        certificates, grants, and financial assistance, shall continue 
        notwithstanding the enactment of this Act or the transfer of 
        the agency to the Department, unless discontinued or modified 
        under the same terms and conditions and to the same extent that 
        such discontinuance could have occurred if such enactment or 
        transfer had not occurred; and
            (2) orders issued in such proceedings, and appeals 
        therefrom, and payments made pursuant to such orders, shall 
        issue in the same manner and on the same terms as if this Act 
        had not been enacted or the agency had not been transferred, 
        and any such orders shall continue in effect until amended, 
        modified, superseded, terminated, set aside, or revoked by an 
        officer of the United States or a court of competent 
        jurisdiction, or by operation of law.
    (c) Pending Civil Actions.--Subject to the authority of the 
Secretary under this Act, pending civil actions shall continue 
notwithstanding the enactment of this Act or the transfer of an agency 
to the Department, and in such civil actions, proceedings shall be had, 
appeals taken, and judgments rendered and enforced in the same manner 
and with the same effect as if such enactment or transfer had not 
occurred.
    (d) References.--References relating to an agency that is 
transferred to the Department in statutes, Executive orders, rules, 
regulations, directives, or delegations of authority that precede such 
transfer or the effective date of this Act shall be deemed to refer, as 
appropriate, to the Department, to its officers, employees, or agents, 
or to its corresponding organizational units or functions. Statutory 
reporting requirements that applied in relation to such an agency 
immediately before the effective date of this Act shall continue to 
apply following such transfer if they refer to the agency by name.
    (e) Employment Provisions.--(1) Notwithstanding the generality of 
the foregoing (including subsections (a) and (d)), in and for the 
Department the Secretary may, in regulations prescribed jointly with 
the Director of the Office of Personnel Management, adopt the rules, 
procedures, terms, and conditions, established by statute, rule, or 
regulation before the effective date of this Act, relating to 
employment in any agency transferred to the Department pursuant to this 
Act; and
    (2) except as otherwise provided in this Act, or under authority 
granted by this Act, the transfer pursuant to this Act of personnel 
shall not alter the terms and conditions of employment, including 
compensation, of any employee so transferred.
    (f) Statutory Reporting Requirements.--Any statutory reporting 
requirement that applied to an agency, transferred to the Department 
under this Act, immediately before the effective date of this Act shall 
continue to apply following that transfer if the statutory requirement 
refers to the agency by name.

SEC. 1513. TERMINATIONS.

    Except as otherwise provided in this Act, whenever all the 
functions vested by law in any agency have been transferred pursuant to 
this Act, each position and office the incumbent of which was 
authorized to receive compensation at the rates prescribed for an 
office or position at level II, III, IV, or V, of the Executive 
Schedule, shall terminate.

SEC. 1514. NATIONAL IDENTIFICATION SYSTEM NOT AUTHORIZED.

    Nothing in this Act shall be construed to authorize the development 
of a national identification system or card.

SEC. 1515. CONTINUITY OF INSPECTOR GENERAL OVERSIGHT.

    Notwithstanding the transfer of an agency to the Department 
pursuant to this Act, the Inspector General that exercised oversight of 
such agency prior to such transfer shall continue to exercise oversight 
of such agency during the period of time, if any, between the transfer 
of such agency to the Department pursuant to this Act and the 
appointment of the Inspector General of the Department of Homeland 
Security in accordance with section 103(b).

SEC. 1516. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, in 
consultation with the Secretary, is authorized and directed to make 
such additional incidental dispositions of personnel, assets, and 
liabilities held, used, arising from, available, or to be made 
available, in connection with the functions transferred by this Act, as 
the Director may determine necessary to accomplish the purposes of this 
Act.

SEC. 1517. REFERENCE.

    With respect to any function transferred by or under this Act 
(including under a reorganization plan that becomes effective under 
section 1502) and exercised on or after the effective date of this Act, 
reference in any other Federal law to any department, commission, or 
agency or any officer or office the functions of which are so 
transferred shall be deemed to refer to the Secretary, other official, 
or component of the Department to which such function is so 
transferred.

      TITLE XVI--CORRECTIONS TO EXISTING LAW RELATING TO AIRLINE 
                        TRANSPORTATION SECURITY

SEC. 1601. RETENTION OF SECURITY SENSITIVE INFORMATION AUTHORITY AT 
              DEPARTMENT OF TRANSPORTATION.

    (a) Section 40119 of title 49, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``and the Administrator of the 
                Federal Aviation Administration each'' after ``for 
                Security''; and
                    (B) by striking ``criminal violence and aircraft 
                piracy'' and inserting ``criminal violence, aircraft 
                piracy, and terrorism and to ensure security''; and
            (2) in subsection (b)(1)--
                    (A) by striking ``, the Under Secretary'' and 
                inserting ``and the establishment of a Department of 
                Homeland Security, the Secretary of Transportation'';
                    (B) by striking ``carrying out'' and all that 
                follows through ``if the Under Secretary'' and 
                inserting ``ensuring security under this title if the 
                Secretary of Transportation''; and
                    (C) in subparagraph (C) by striking ``the safety of 
                passengers in transportation'' and inserting 
                ``transportation safety''.
    (b) Section 114 of title 49, United States Code, is amended by 
adding at the end the following:
    ``(s) Nondisclosure of Security Activities.--
            ``(1) In general.--Notwithstanding section 552 of title 5, 
        the Under Secretary shall prescribe regulations prohibiting the 
        disclosure of information obtained or developed in carrying out 
        security under authority of the Aviation and Transportation 
        Security Act (Public Law 107-71) or under chapter 449 of this 
        title if the Under Secretary decides that disclosing the 
        information would--
                    ``(A) be an unwarranted invasion of personal 
                privacy;
                    ``(B) reveal a trade secret or privileged or 
                confidential commercial or financial information; or
                    ``(C) be detrimental to the security of 
                transportation.
            ``(2) Availability of information to congress.--Paragraph 
        (1) does not authorize information to be withheld from a 
        committee of Congress authorized to have the information.
            ``(3) Limitation on transferability of duties.--Except as 
        otherwise provided by law, the Under Secretary may not transfer 
        a duty or power under this subsection to another department, 
        agency, or instrumentality of the United States.''.

SEC. 1602. INCREASE IN CIVIL PENALTIES.

    Section 46301(a) of title 49, United States Code, is amended by 
adding at the end the following:
            ``(8) Aviation security violations.--Notwithstanding 
        paragraphs (1) and (2) of this subsection, the maximum civil 
        penalty for violating chapter 449 or another requirement under 
        this title administered by the Under Secretary of 
        Transportation for Security shall be $10,000; except that the 
        maximum civil penalty shall be $25,000 in the case of a person 
        operating an aircraft for the transportation of passengers or 
        property for compensation (except an individual serving as an 
        airman).''.

SEC. 1603. ALLOWING UNITED STATES CITIZENS AND UNITED STATES NATIONALS 
              AS SCREENERS.

    Section 44935(e)(2)(A)(ii) of title 49, United States Code, is 
amended by striking ``citizen of the United States'' and inserting 
``citizen of the United States or a national of the United States, as 
defined in section 1101(a)(22) of the Immigration and Nationality Act 
(8 U.S.C. 1101(a)(22))''.

            TITLE XVII--CONFORMING AND TECHNICAL AMENDMENTS

SEC. 1701. INSPECTOR GENERAL ACT OF 1978.

    Section 11 of the Inspector General Act of 1978 (Public Law 95-452) 
is amended--
            (1) by inserting ``Homeland Security,'' after 
        ``Transportation,'' each place it appears; and
            (2) by striking ``; and'' each place it appears in 
        paragraph (1) and inserting ``;'';

SEC. 1702. EXECUTIVE SCHEDULE.

    (a) In General.--Title 5, United States Code, is amended--
            (1) in section 5312, by inserting ``Secretary of Homeland 
        Security.'' as a new item after ``Affairs.'';
            (2) in section 5313, by inserting ``Deputy Secretary of 
        Homeland Security.'' as a new item after ``Affairs.'';
            (3) in section 5314, by inserting ``Under Secretaries, 
        Department of Homeland Security.'', ``Director of the Bureau of 
        Citizenship and Immigration Services.'' as new items after 
        ``Affairs.'' the third place it appears;
            (4) in section 5315, by inserting ``Assistant Secretaries, 
        Department of Homeland Security.'', ``General Counsel, 
        Department of Homeland Security.'', ``Officer for Civil Rights 
        and Civil Liberties, Department of Homeland Security.'', 
        ``Chief Financial Officer, Department of Homeland Security.'', 
        ``Chief Information Officer, Department of Homeland 
        Security.'', and ``Inspector General, Department of Homeland 
        Security.'' as new items after ``Affairs.'' the first place it 
        appears; and
            (5) in section 5315, by striking ``Commissioner of 
        Immigration and Naturalization, Department of Justice.''.
    (b) Special Effective Date.--Notwithstanding section 4, the 
amendment made by subsection (a)(5) shall take effect on the date on 
which the transfer of functions specified under section 441 takes 
effect.

SEC. 1703. UNITED STATES SECRET SERVICE.

    (a) In General.--(1) The United States Code is amended in section 
202 of title 3, and in section 3056 of title 18, by striking ``of the 
Treasury'', each place it appears and inserting ``of Homeland 
Security''.
    (2) Section 208 of title 3, United States Code, is amended by 
striking ``of Treasury'' each place it appears and inserting ``of 
Homeland Security''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of transfer of the United States Secret Service to 
the Department.

SEC. 1704. COAST GUARD.

    (a) Title 14, U.S.C.--Title 14, United States Code, is amended in 
sections 1, 3, 53, 95, 145, 516, 666, 669, 673, 673a (as redesignated 
by subsection (e)(1)), 674, 687, and 688 by striking ``of 
Transportation'' each place it appears and inserting ``of Homeland 
Security''.
    (b) Title 10, U.S.C.--(1) Title 10, United States Code, is amended 
in sections 101(9), 130b(a), 130b(c)(4), 130c(h)(1), 379, 513(d), 
575(b)(2), 580(e)(6), 580a(e), 651(a), 671(c)(2), 708(a), 716(a), 717, 
806(d)(2), 815(e), 888, 946(c)(1), 973(d), 978(d), 983(b)(1), 985(a), 
1033(b)(1), 1033(d), 1034, 1037(c), 1044d(f), 1058(c), 1059(a), 
1059(k)(1), 1073(a), 1074(c)(1), 1089(g)(2), 1090, 1091(a), 1124, 1143, 
1143a(h), 1144, 1145(e), 1148, 1149, 1150(c), 1152(a), 1152(d)(1), 
1153, 1175, 1212(a), 1408(h)(2), 1408(h)(8), 1463(a)(2), 1482a(b), 
1510, 1552(a)(1), 1565(f), 1588(f)(4), 1589, 2002(a), 2302(1), 
2306b(b), 2323(j)(2), 2376(2), 2396(b)(1), 2410a(a), 2572(a), 2575(a), 
2578, 2601(b)(4), 2634(e), 2635(a), 2734(g), 2734a, 2775, 2830(b)(2), 
2835, 2836, 4745(a), 5013a(a), 7361(b), 10143(b)(2), 10146(a), 
10147(a), 10149(b), 10150, 10202(b), 10203(d), 10205(b), 10301(b), 
12103(b), 12103(d), 12304, 12311(c), 12522(c), 12527(a)(2), 12731(b), 
12731a(e), 16131(a), 16136(a), 16301(g), and 18501 by striking ``of 
Transportation'' each place it appears and inserting ``of Homeland 
Security''.
    (2) Section 801(1) of such title is amended by striking ``the 
General Counsel of the Department of Transportation'' and inserting 
``an official designated to serve as Judge Advocate General of the 
Coast Guard by the Secretary of Homeland Security''.
    (3) Section 983(d)(2)(B) of such title is amended by striking 
``Department of Transportation'' and inserting ``Department of Homeland 
Security''.
    (4) Section 2665(b) of such title is amended by striking 
``Department of Transportation'' and inserting ``Department in which 
the Coast Guard is operating''.
    (5) Section 7045 of such title is amended--
            (A) in subsections (a)(1) and (b), by striking 
        ``Secretaries of the Army, Air Force, and Transportation'' both 
        places it appears and inserting ``Secretary of the Army, the 
        Secretary of the Air Force, and the Secretary of Homeland 
        Security''; and
            (B) in subsection (b), by striking ``Department of 
        Transportation'' and inserting ``Department of Homeland 
        Security''.
    (6) Section 7361(b) of such title is amended in the subsection 
heading by striking ``Transportation'' and inserting ``Homeland 
Security''.
    (7) Section 12522(c) of such title is amended in the subsection 
heading by striking ``Transportation'' and inserting ``Homeland 
Security''.
    (c) Title 37, U.S.C.--Title 37, United States Code, is amended in 
sections 101(5), 204(i)(4), 301a(a)(3), 306(d), 307(c), 308(a)(1), 
308(d)(2), 308(f), 308b(e), 308c(c), 308d(a), 308e(f), 308g(g), 
308h(f), 308i(e), 309(d), 316(d), 323(b), 323(g)(1), 325(i), 402(d), 
402a(g)(1), 403(f)(3), 403(l)(1), 403b(i)(5), 406(b)(1), 417(a), 
417(b), 418(a), 703, 1001(c), 1006(f), 1007(a), and 1011(d) by striking 
``of Transportation'' each place it appears and inserting ``of Homeland 
Security''.
    (d) Title 38, U.S.C.--Title 38, United States Code, is amended in 
sections 101(25)(d), 1560(a), 3002(5), 3011(a)(1)(A)(ii)(I), 
3011(a)(1)(A)(ii)(II), 3011(a)(1)(B)(ii)(III), 
3011(a)(1)(C)(iii)(II)(cc), 3012(b)(1)(A)(v), 3012(b)(1)(B)(ii)(V), 
3018(b)(3)(B)(iv), 3018A(a)(3), 3018B(a)(1)(C), 3018B(a)(2)(C), 
3018C(a)(5), 3020(m), 3035(b)(2), 3035(c), 3035(d), 3035(e), 3680A(g), 
and 6105(c) by striking ``of Transportation'' each place it appears and 
inserting ``of Homeland Security''.
    (e) Other Defense-Related Laws.--(1) Section 363 of Public Law 104-
193 (110 Stat. 2247) is amended--
            (A) in subsection (a)(1) (10 U.S.C. 113 note), by striking 
        ``of Transportation'' and inserting ``of Homeland Security''; 
        and
            (B) in subsection (b)(1) (10 U.S.C. 704 note), by striking 
        ``of Transportation'' and inserting ``of Homeland Security''.
    (2) Section 721(1) of Public Law 104-201 (10 U.S.C. 1073 note) is 
amended by striking ``of Transportation'' and inserting ``of Homeland 
Security''.
    (3) Section 4463(a) of Public Law 102-484 (10 U.S.C. 1143a note) is 
amended by striking ``after consultation with the Secretary of 
Transportation''.
    (4) Section 4466(h) of Public Law 102-484 (10 U.S.C. 1143 note) is 
amended by striking ``of Transportation'' and inserting ``of Homeland 
Security''.
    (5) Section 542(d) of Public Law 103-337 (10 U.S.C. 1293 note) is 
amended by striking ``of Transportation'' and inserting ``of Homeland 
Security''.
    (6) Section 740 of Public Law 106-181 (10 U.S.C. 2576 note) is 
amended in subsections (b)(2), (c), and (d)(1) by striking ``of 
Transportation'' each place it appears and inserting ``of Homeland 
Security''.
    (7) Section 1407(b)(2) of the Defense Dependents' Education Act of 
1978 (20 U.S.C. 926(b)) is amended by striking ``of Transportation'' 
both places it appears and inserting ``of Homeland Security''.
    (8) Section 2301(5)(D) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6671(5)(D)) is amended by striking ``of 
Transportation'' and inserting ``of Homeland Security''.
    (9) Section 2307(a) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6677(a)) is amended by striking ``of 
Transportation'' and inserting ``of Homeland Security''.
    (10) Section 1034(a) of Public Law 105-85 (21 U.S.C. 1505a(a)) is 
amended by striking ``of Transportation'' and inserting ``of Homeland 
Security''.
    (11) The Military Selective Service Act is amended--
            (A) in section 4(a) (50 U.S.C. App. 454(a)), by striking 
        ``of Transportation'' in the fourth paragraph and inserting 
        ``of Homeland Security'';
            (B) in section 4(b) (50 U.S.C. App. 454(b)), by striking 
        ``of Transportation'' both places it appears and inserting ``of 
        Homeland Security'';
            (C) in section 6(d)(1) (50 U.S.C. App. 456(d)(1)), by 
        striking ``of Transportation'' both places it appears and 
        inserting ``of Homeland Security'';
            (D) in section 9(c) (50 U.S.C. App. 459(c)), by striking 
        ``Secretaries of Army, Navy, Air Force, or Transportation'' and 
        inserting ``Secretary of a military department, and the 
        Secretary of Homeland Security with respect to the Coast 
        Guard,''; and
            (E) in section 15(e) (50 U.S.C. App. 465(e)), by striking 
        ``of Transportation'' both places it appears and inserting ``of 
        Homeland Security''.
    (f) Technical Correction.--(1) Title 14, United States Code, is 
amended by redesignating section 673 (as added by section 309 of Public 
Law 104-324) as section 673a.
    (2) The table of sections at the beginning of chapter 17 of such 
title is amended by redesignating the item relating to such section as 
section 673a.
    (g) Effective Date.--The amendments made by this section (other 
than subsection (f)) shall take effect on the date of transfer of the 
Coast Guard to the Department.

SEC. 1705. STRATEGIC NATIONAL STOCKPILE AND SMALLPOX VACCINE 
              DEVELOPMENT.

    (a) In General.--Section 121 of the Public Health Security and 
Bioterrorism Preparedness and Response Act of 2002 (Public Law 107-188; 
42 U.S.C. 300hh-12) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``Secretary of Health and Human 
                Services'' and inserting ``Secretary of Homeland 
                Security'';
                    (B) by inserting ``the Secretary of Health and 
                Human Services and'' between ``in coordination with'' 
                and ``the Secretary of Veterans Affairs''; and
                    (C) by inserting ``of Health and Human Services'' 
                after ``as are determined by the Secretary''; and
            (2) in subsections (a)(2) and (b), by inserting ``of Health 
        and Human Services'' after ``Secretary'' each place it appears.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of transfer of the Strategic National Stockpile of 
the Department of Health and Human Services to the Department.

SEC. 1706. TRANSFER OF CERTAIN SECURITY AND LAW ENFORCEMENT FUNCTIONS 
              AND AUTHORITIES.

    (a) Amendment to Title 40.--Section 581 of title 40, United States 
Code, is amended--
            (1) by striking subsection (a); and
            (2) in subsection (b)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (1);
                    (B) by striking ``; and'' at the end of paragraph 
                (2) and inserting a period; and
                    (C) by striking paragraph (3).
    (b) Law Enforcement Authority.--
            (1) In general.--Section 1315 of title 40, United States 
        Code, is amended to read as follows:
``Sec. 1315. Law enforcement authority of Secretary of Homeland 
              Security for protection of public property
    ``(a) In General.--To the extent provided for by transfers made 
pursuant to the Homeland Security Act of 2002, the Secretary of 
Homeland Security (in this section referred to as the `Secretary') 
shall protect the buildings, grounds, and property that are owned, 
occupied, or secured by the Federal Government (including any agency, 
instrumentality, or wholly owned or mixed-ownership corporation 
thereof) and the persons on the property.
    ``(b) Officers and Agents.--
            ``(1) Designation.--The Secretary may designate employees 
        of the Department of Homeland Security, including employees 
        transferred to the Department from the Office of the Federal 
        Protective Service of the General Services Administration 
        pursuant to the Homeland Security Act of 2002, as officers and 
        agents for duty in connection with the protection of property 
        owned or occupied by the Federal Government and persons on the 
        property, including duty in areas outside the property to the 
        extent necessary to protect the property and persons on the 
        property.
            ``(2) Powers.--While engaged in the performance of official 
        duties, an officer or agent designated under this subsection 
        may--
                    ``(A) enforce Federal laws and regulations for the 
                protection of persons and property;
                    ``(B) carry firearms;
                    ``(C) make arrests without a warrant for any 
                offense against the United States committed in the 
                presence of the officer or agent or for any felony 
                cognizable under the laws of the United States if the 
                officer or agent has reasonable grounds to believe that 
                the person to be arrested has committed or is 
                committing a felony;
                    ``(D) serve warrants and subpoenas issued under the 
                authority of the United States; and
                    ``(E) conduct investigations, on and off the 
                property in question, of offenses that may have been 
                committed against property owned or occupied by the 
                Federal Government or persons on the property.
                    ``(F) carry out such other activities for the 
                promotion of homeland security as the Secretary may 
                prescribe.
    ``(c) Regulations.--
            ``(1) In general.--The Secretary, in consultation with the 
        Administrator of General Services, may prescribe regulations 
        necessary for the protection and administration of property 
        owned or occupied by the Federal Government and persons on the 
        property. The regulations may include reasonable penalties, 
        within the limits prescribed in paragraph (2), for violations 
        of the regulations. The regulations shall be posted and remain 
        posted in a conspicuous place on the property.
            ``(2) Penalties.--A person violating a regulation 
        prescribed under this subsection shall be fined under title 18, 
        United States Code, imprisoned for not more than 30 days, or 
        both.
    ``(d) Details.--
            ``(1) Requests of agencies.--On the request of the head of 
        a Federal agency having charge or control of property owned or 
        occupied by the Federal Government, the Secretary may detail 
        officers and agents designated under this section for the 
        protection of the property and persons on the property.
            ``(2) Applicability of regulations.--The Secretary may--
                    ``(A) extend to property referred to in paragraph 
                (1) the applicability of regulations prescribed under 
                this section and enforce the regulations as provided in 
                this section; or
                    ``(B) utilize the authority and regulations of the 
                requesting agency if agreed to in writing by the 
                agencies.
            ``(3) Facilities and services of other agencies.--When the 
        Secretary determines it to be economical and in the public 
        interest, the Secretary may utilize the facilities and services 
        of Federal, State, and local law enforcement agencies, with the 
        consent of the agencies.
    ``(e) Authority Outside Federal Property.--For the protection of 
property owned or occupied by the Federal Government and persons on the 
property, the Secretary may enter into agreements with Federal agencies 
and with State and local governments to obtain authority for officers 
and agents designated under this section to enforce Federal laws and 
State and local laws concurrently with other Federal law enforcement 
officers and with State and local law enforcement officers.
    ``(f) Secretary and Attorney General Approval.--The powers granted 
to officers and agents designated under this section shall be exercised 
in accordance with guidelines approved by the Secretary and the 
Attorney General.
    ``(g) Limitation on Statutory Construction.--Nothing in this 
section shall be construed to--
            ``(1) preclude or limit the authority of any Federal law 
        enforcement agency; or
            ``(2) restrict the authority of the Administrator of 
        General Services to promulgate regulations affecting property 
        under the Administrator's custody and control.''.
            (2) Delegation of authority.--The Secretary may delegate 
        authority for the protection of specific buildings to another 
        Federal agency where, in the Secretary's discretion, the 
        Secretary determines it necessary for the protection of that 
        building.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 13 of title 40, United States Code, is 
        amended by striking the item relating to section 1315 and 
        inserting the following:

``1315. Law enforcement authority of Secretary of Homeland Security for 
                            protection of public property.''.

SEC. 1707. TRANSPORTATION SECURITY REGULATIONS.

    Title 49, United States Code, is amended--
            (1) in section 114(l)(2)(B), by inserting ``for a period 
        not to exceed 90 days'' after ``effective''; and
            (2) in section 114(l)(2)(B), by inserting ``ratified or'' 
        after ``unless''.

SEC. 1708. NATIONAL BIO-WEAPONS DEFENSE ANALYSIS CENTER.

    There is established in the Department of Defense a National Bio-
Weapons Defense Analysis Center, whose mission is to develop 
countermeasures to potential attacks by terrorists using weapons of 
mass destruction.

SEC. 1709. COLLABORATION WITH THE SECRETARY OF HOMELAND SECURITY.

    (a) Department of Health and Human Services.--The second sentence 
of section 351A(e)(1) of the Public Health Service Act (42 U.S.C. 
262A(e)(1)) is amended by striking ``consultation with'' and inserting 
``collaboration with the Secretary of Homeland Security and''.
    (b) Department of Agriculture.--The second sentence of section 
212(e)(1) of the Agricultural Bioterrorism Protection Act of 2002 (7 
U.S.C. 8401) is amended by striking ``consultation with'' and inserting 
``collaboration with the Secretary of Homeland Security and''.

SEC. 1710. RAILROAD SAFETY TO INCLUDE RAILROAD SECURITY.

    (a) Investigation and Surveillance Activities.--Section 20105 of 
title 49, United States Code, is amended--
            (1) by striking ``Secretary of Transportation'' in the 
        first sentence of subsection (a) and inserting ``Secretary 
        concerned'';
            (2) by striking ``Secretary'' each place it appears (except 
        the first sentence of subsection (a)) and inserting ``Secretary 
        concerned'';
            (3) by striking ``Secretary's duties under chapters 203-213 
        of this title'' in subsection (d) and inserting ``duties under 
        chapters 203-213 of this title (in the case of the Secretary of 
        Transportation) and duties under section 114 of this title (in 
        the case of the Secretary of Homeland Security)'';
            (4) by striking ``chapter.'' in subsection (f) and 
        inserting ``chapter (in the case of the Secretary of 
        Transportation) and duties under section 114 of this title (in 
        the case of the Secretary of Homeland Security).''; and
            (5) by adding at the end the following new subsection:
    ``(g) Definitions.--In this section--
            ``(1) the term `safety' includes security; and
            ``(2) the term `Secretary concerned' means--
                    ``(A) the Secretary of Transportation, with respect 
                to railroad safety matters concerning such Secretary 
                under laws administered by that Secretary; and
                    ``(B) the Secretary of Homeland Security, with 
                respect to railroad safety matters concerning such 
                Secretary under laws administered by that Secretary.''.
    (b) Regulations and Orders.--Section 20103(a) of such title is 
amended by inserting after ``1970.'' the following: ``When prescribing 
a security regulation or issuing a security order that affects the 
safety of railroad operations, the Secretary of Homeland Security shall 
consult with the Secretary.''.
    (c) National Uniformity of Regulation.--Section 20106 of such title 
is amended--
            (1) by inserting ``and laws, regulations, and orders 
        related to railroad security'' after ``safety'' in the first 
        sentence;
            (2) by inserting ``or security'' after ``safety'' each 
        place it appears after the first sentence; and
            (3) by striking ``Transportation'' in the second sentence 
        and inserting ``Transportation (with respect to railroad safety 
        matters), or the Secretary of Homeland Security (with respect 
        to railroad security matters),''.

SEC. 1711. HAZMAT SAFETY TO INCLUDE HAZMAT SECURITY.

    (a) General Regulatory Authority.--Section 5103 of title 49, United 
States Code, is amended--
            (1) by striking ``transportation'' the first place it 
        appears in subsection (b)(1) and inserting ``transportation, 
        including security,'';
            (2) by striking ``aspects'' in subsection (b)(1)(B) and 
        inserting ``aspects, including security,''; and
            (3) by adding at the end the following:
                    ``(C) Consultation.--When prescribing a security 
                regulation or issuing a security order that affects the 
                safety of the transportation of hazardous material, the 
                Secretary of Homeland Security shall consult with the 
                Secretary.''.
    (b) Preemption.--Section 5125 of that title is amended--
            (1) by striking ``chapter or a regulation prescribed under 
        this chapter'' in subsection (a)(1) and inserting ``chapter, a 
        regulation prescribed under this chapter, or a hazardous 
        materials transportation security regulation or directive 
        issued by the Secretary of Homeland Security'';
            (2) by striking ``chapter or a regulation prescribed under 
        this chapter.'' in subsection (a)(2) and inserting ``chapter, a 
        regulation prescribed under this chapter, or a hazardous 
        materials transportation security regulation or directive 
        issued by the Secretary of Homeland Security.''; and
            (3) by striking ``chapter or a regulation prescribed under 
        this chapter,'' in subsection (b)(1) and inserting ``chapter, a 
        regulation prescribed under this chapter, or a hazardous 
        materials transportation security regulation or directive 
        issued by the Secretary of Homeland Security,''.

SEC. 1712. OFFICE OF SCIENCE AND TECHNOLOGY POLICY.

    The National Science and Technology Policy, Organization, and 
Priorities Act of 1976 is amended--
            (1) in section 204(b)(1) (42 U.S.C. 6613(b)(1)), by 
        inserting ``homeland security,'' after ``national security,''; 
        and
            (2) in section 208(a)(1) (42 U.S.C. 6617(a)(1)), by 
        inserting ``the Office of Homeland Security,'' after ``National 
        Security Council,''.

SEC. 1713. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    Section 7902(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraphs:
            ``(13) The Under Secretary for Science and Technology of 
        the Department of Homeland Security.
            ``(14) Other Federal officials the Council considers 
        appropriate.''.

SEC. 1714. CLARIFICATION OF DEFINITION OF MANUFACTURER.

    Section 2133(3) of the Public Health Service Act (42 U.S.C. 300aa-
33(3)) is amended--
            (1) in the first sentence, by striking ``under its label 
        any vaccine set forth in the Vaccine Injury Table'' and 
        inserting ``any vaccine set forth in the Vaccine Injury table, 
        including any component or ingredient of any such vaccine''; 
        and
            (2) in the second sentence, by inserting ``including any 
        component or ingredient of any such vaccine'' before the 
        period.

SEC. 1715. CLARIFICATION OF DEFINITION OF VACCINE-RELATED INJURY OR 
              DEATH.

    Section 2133(5) of the Public Health Service Act (42 U.S.C. 300aa-
33(5)) is amended by adding at the end the following: ``For purposes of 
the preceding sentence, an adulterant or contaminant shall not include 
any component or ingredient listed in a vaccine's product license 
application or product label.''.

SEC. 1716. CLARIFICATION OF DEFINITION OF VACCINE.

    Section 2133 of the Public Health Service Act (42 U.S.C. 300aa-33) 
is amended by adding at the end the following:
            ``(7) The term `vaccine' means any preparation or 
        suspension, including but not limited to a preparation or 
        suspension containing an attenuated or inactive microorganism 
        or subunit thereof or toxin, developed or administered to 
        produce or enhance the body's immune response to a disease or 
        diseases and includes all components and ingredients listed in 
        the vaccines's product license application and product 
        label.''.

SEC. 1717. EFFECTIVE DATE.

    The amendments made by sections 1714, 1715, and 1716 shall apply to 
all actions or proceedings pending on or after the date of enactment of 
this Act, unless a court of competent jurisdiction has entered judgment 
(regardless of whether the time for appeal has expired) in such action 
or proceeding disposing of the entire action or proceeding.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                               H. R. 5005

_______________________________________________________________________

                               AMENDMENT