[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5005 Enrolled Bill (ENR)]

        H.R.5005

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
    To establish the Department of Homeland Security, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 any other 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 Safe 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) Homeland Security Advanced Research Projects Agency.--
        (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) Federal Advisory Committee Act 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 are 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 No. 12148 (44 Fed. Reg. 43239) and Executive Order No. 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 
    (Public Law 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 (Public Law 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; and
                ``(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, United States Code.--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, United States Code.--(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, United States Code.--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, United States Code.--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;
            ``(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; and
            ``(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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.