[Congressional Record Volume 148, Number 53 (Thursday, May 2, 2002)]
[Senate]
[Pages S3874-S3880]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LIEBERMAN (for himself, Mr. Specter, and Mr. Graham):

  S. 2452. A bill to establish the Department of National Homeland 
Security and the National Office for Combating Terrorism; to the 
Committee on Governmental Affairs.
  Mr. LIEBERMAN. Mr. President, today I am pleased to introduce, with 
Senators Specter and Graham, the National Homeland Security and 
Combating Terrorism Act of 2002. This legislation seeks to strengthen 
the Federal Government's ability to confront terrorism and other 
threats to our homeland security.
  Specifically, this legislation would create a new Department of 
National Homeland Security to focus an array of agencies and programs 
that are vital to securing our borders and critical infrastructure, and 
to preparing for and responding to homeland threats. It also would 
create a White House terrorism director to forge an effective strategy 
to combat terrorism across the entire Federal Government. In addition 
to the bill we introduce here, I am pleased to note that companion 
legislation is being introduced today by Representatives Thornberry, 
Harman, Tauscher and Gibbons.
  The events of September 11 brought home to us the very real threat of 
terrorism not only on foreign shores, but also here at home. Though the 
pain of that day will stay in our hearts and minds forever, we now have 
an opportunity to step back from that single most horrid event in our 
modern history and take action to prevent something like it from ever 
happening again.
  It seems that nearly every day, the media or government investigators 
expose a new crack in America's homeland defense foundation, at our 
borders, our ports, or within our cyberspace. The fact is, without a 
government that is permanently reoriented to meet unexpected challenges 
here at home, new vulnerabilities will emerge. That's why we must 
mobilize government so that it can quickly and effectively prevent 
terrorist threats here at home and respond should the worst occur.
  Our approach, combining a homeland security department with a White 
House office for combating terrorism, addresses the need to permanently 
restructure critical homeland security functions under a cabinet-level 
secretary with real operational authority and the ability to personally 
direct a homeland security plan. At the same time, we would allow for 
the highest

[[Page S3875]]

level of coordination with other Federal agencies--Health and Human 
Services, the Defense Department, the Energy Department, for example, 
and real budget certification authority.
  Our proposal stems from a series of hearings I convened last fall as 
chairman of the Governmental Affairs Committee. We held about a dozen 
different sessions looking into various aspects of homeland security, 
ranging from protection of our critical infrastructure to the state and 
local role in protecting Americans at home. Those hearings confirmed 
what experts and commissions had already warned us: that our government 
is poorly prepared to deal with the threat of terrorism. Although the 
government has an array of programs related to terrorism and 
other homeland threats, these efforts are poorly coordinated and lack 
overall strategic leadership. We need focused, accountable leadership 
to forge these efforts into a cohesive homeland security program.

  Among the witnesses we heard from were former Senators Warren Rudman 
and Gary Hart, who co-chaired the so-called Hart-Rudman Commission on 
National Security/21st Century. Guided by recommendations of that 
Commission, Senator Specter and I introduced legislation to create a 
Homeland Security Department. After negotiations through the winter 
with Senator Graham, we combined our proposal with his idea of 
conferring statutory authority on a White House terrorism office.
  As our bill is written, the department will be led by a Cabinet 
official with real line and budget authority over critical homeland 
security programs. The new department will bring together under one 
roof our key border security agencies, Coast Guard, Customs, INS law 
enforcement, as well as the Federal Emergency Management Agency, which 
is the cornerstone of our emergency preparation and response efforts. 
The department will also include programs to protect our critical 
infrastructure, and an office to promote research and development of 
technologies vital to our homeland security. The new department will 
provide state and local authorities with a clear resource and point of 
contact to forge a truly national response to this problem.
  Yet we recognize that, no matter how robust a department we create, 
it can not include every agency that plays a role in homeland security, 
which is why our legislation incorporates Senator Graham's proposal to 
confer statutory authority on a White House office. That office--the 
National Office for Combating Terrorism--would coordinate a national 
anti-terrorism strategy. The office would be led by a presidentially-
appointed, Senate-confirmed director charged with coordinating a 
comprehensive assessment of terrorist threats and, along with the 
department secretary, developing a strategy and a budget to fight 
terrorism here at home. The director would coordinate execution of the 
strategy by relevant federal agencies--particularly those concerned 
with intelligence and law enforcement.
  Naturally, our new formation would require a major restructuring of 
the Federal Government's public safety-related responsibilities. I know 
this will not be easy. Machiavelli trenchantly observed ``there is 
nothing more difficult to plan, more doubtful of success nor more 
dangerous to manage than the creation of a new system.'' Within the 
agencies, and within Congress as well, as Governor Ridge has already 
discovered, there are powerful reflexes to protect administrative turf. 
Bureaucracies are slow to change. Change is disruptive. It creates 
uncertainty and it distorts existing balances of power.
  But we must look at September 11 as an urgent reason to create 
something better. A restructuring of the kind we envision is not 
unprecedented. We have undertaken bold organizational change in periods 
of crisis before. Consider General Marshall's transformation of the 
army which helped win World War II or the National Security Act of 1947 
that created the CIA and Department of Defense in the midst of the Cold 
War. More recently, the Goldwater-Nichols Act of 1986, in streamlining 
the military command, helped us to prosecute the Persian Gulf War.
  The bottom line is if statutory and budget authority are not 
conferred upon the director of homeland security, the homeland defense 
of this nation will be less than what it should be. In the one area 
where compromise can be catastrophic, this is an unacceptable 
compromise.
  Let's be motivated by the words of Winston Churchill, who in 1941 
said to the Axis powers, ``You do your worst and we will do our best.'' 
We can tinker around the edges of change. Or, we can understand that 
September 11 confirmed our worst fears: warfare has changed and we are 
no longer safe at home. We are in a terrible, new era and we urgently 
need a government that is invigorated and effectively organized to meet 
the challenge.
  I thank my colleagues and ask unanimous consent that the text of our 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2452

       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 ``National 
     Homeland Security and Combating Terrorism Act of 2002''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

           TITLE I--DEPARTMENT OF NATIONAL HOMELAND SECURITY

Sec. 101. Establishment of the Department of National Homeland 
              Security.
Sec. 102. Transfer of authorities, functions, personnel, and assets to 
              the Department.
Sec. 103. Establishment of directorates and office.
Sec. 104. Steering Group; Coordination Committee; and Acceleration 
              Fund.
Sec. 105. Reporting requirements.
Sec. 106. Planning, programming, and budgeting process.
Sec. 107. Environmental protection, safety, and health requirements.
Sec. 108. Savings provisions.

           TITLE II--NATIONAL OFFICE FOR COMBATING TERRORISM

Sec. 201. National Office for Combating Terrorism.
Sec. 202. Funding for Strategy programs and activities.

 TITLE III--NATIONAL STRATEGY FOR COMBATING TERRORISM AND THE HOMELAND 
                           SECURITY RESPONSE

Sec. 301. Strategy.
Sec. 302. National Homeland Security Panel.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective Date.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Director.--Except as provided under section 104, the 
     term ``Director'' means the Director of the National Office 
     for Combating Terrorism.
       (2) Department.--The term ``Department'' means the 
     Department of National Homeland Security established under 
     title I.
       (3) Federal terrorism prevention and response agency.--The 
     term ``Federal terrorism prevention and response agency'' 
     means any Federal department or agency charged under the 
     Strategy with responsibilities for carrying out the Strategy.
       (4) Office.--The term ``Office'' means the National Office 
     for Combating Terrorism established under title II.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of National Homeland Security.
       (6) Strategy.--The term ``Strategy'' means the National 
     Strategy for Combating Terrorism and the Homeland Security 
     Response developed under this Act.

           TITLE I--DEPARTMENT OF NATIONAL HOMELAND SECURITY

     SEC. 101. ESTABLISHMENT OF THE DEPARTMENT OF NATIONAL 
                   HOMELAND SECURITY.

       (a) Establishment.--
       (1) In general.--There is established the Department of 
     National Homeland Security.
       (2) Executive department.--Section 101 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``The Department of National Homeland Security.''.
       (b) Secretary of National Homeland Security.--
       (1) In general.--The Secretary of National Homeland 
     Security shall be the head of the Department. The Secretary 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       (2) Responsibilities.--The responsibilities of the 
     Secretary shall be the following:
       (A) To develop policies, goals, objectives, priorities, and 
     plans for the United States for the promotion of homeland 
     security.
       (B) To develop, with the Director, a comprehensive strategy 
     in accordance with title III.
       (C) Develop processes to integrate the elements and goals 
     of the Strategy into the strategies and plans of Federal, 
     State, and local departments and agencies, including 
     interagency and intergovernmental shared policies.

[[Page S3876]]

       (D) To evaluate the programs of the Federal Government 
     relating to homeland security that involve activities of 
     State and local governments as part of the Strategy.
       (E) To advise the Director on the development of a 
     comprehensive annual budget for the programs and activities 
     under the Strategy, and have the responsibility for budget 
     recommendations relating to border security, critical 
     infrastructure protection, emergency preparation and 
     response, and State and local activities.
       (F) To plan, coordinate, and integrate those United States 
     Government activities relating to border security, critical 
     infrastructure protection and emergency preparedness, and to 
     act as the focal point regarding natural and manmade crises 
     and emergency planning and response.
       (G) To work and coordinate with State and local governments 
     and executive agencies in providing United States homeland 
     security, and to communicate with and support State and local 
     officials through the use of regional offices around the 
     Nation.
       (H) To provide overall operational planning guidance to 
     executive agencies regarding United States homeland security.
       (I) To conduct exercise and training programs for employees 
     of the Department and other involved agencies, and establish 
     effective command and control procedures for the full range 
     of potential contingencies regarding United States homeland 
     security, including contingencies that require the 
     substantial support of military assets.
       (J) To annually develop a Federal response plan for 
     homeland security and emergency preparedness with regard to 
     terrorism and other manmade and natural disasters.
       (K) To identify and promote technological innovation that 
     will enhance homeland security.
       (L)(i) To develop and implement within the Department a 
     coordinating center with representatives from other Federal 
     departments or agencies with homeland security 
     responsibilities.
       (ii) To designate departments and agencies to provide a 
     representative under clause (i) and require those departments 
     and agencies to furnish a representative on a permanent, 
     part-time, or as needed basis, as determined by the 
     Secretary.
       (iii) To request additional personnel from appropriate 
     departments and agencies as may be necessary and coordinate 
     with those departments and agencies.
       (iv) To request State and local authorities to provide 
     representatives to the coordination center.
       (3) Executive schedule level i position.--Section 5312 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``Secretary of National Homeland Security.''.
       (4) Membership on the national security council.--Section 
     101(a) of the National Security Act of 1947 (50 U.S.C. 
     402(a)) is amended in the fourth sentence by striking 
     paragraphs (5), (6), and (7) and inserting the following:
       ``(5) the Secretary of National Homeland Security; and
       ``(6) each Secretary or Under Secretary of such other 
     executive department, or of a military department, as the 
     President shall designate.''.
       (c) Deputy Secretary of National Homeland Security.--
       (1) In general.--There shall be in the Department a Deputy 
     Secretary of National Homeland Security, who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       (2) Responsibilities.--The Deputy Secretary of National 
     Homeland Security shall--
       (A) assist the Secretary in the administration and 
     operations of the Department;
       (B) perform such responsibilities as the Secretary shall 
     prescribe; and
       (C) act as the Secretary during the absence or disability 
     of the Secretary or in the event of a vacancy in the office 
     of the Secretary.
       (3) Executive schedule level ii position.--Section 5313 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``Deputy Secretary of National Homeland Security.''.
       (d) Inspector General.--
       (1) In general.--There shall be in the Department an 
     Inspector General for the Department. The Inspector General 
     and the Office of Inspector General shall be subject to the 
     Inspector General Act of 1978 (5 U.S.C. App.).
       (2) Establishment.--Section 11 of the Inspector General Act 
     of 1978 (5 U.S.C. App.) is amended--
       (A) in paragraph (1), by inserting ``National Homeland 
     Security,'' after ``Labor,''; and
       (B) in paragraph (2), by inserting ``National Homeland 
     Security,'' after ``Labor,''.
       (e) Director of the Coordinating Center.--
       (1) In general.--There shall be in the Department a 
     Director of the Coordinating Center who shall report directly 
     to the Deputy Secretary. The Coordinating Center shall be 
     developed and implemented in accordance with subsection 
     (b)(2)(L).
       (2) Responsibilities.--The Director of the Coordinating 
     Center shall be responsible for--
       (A) ensuring that the law enforcement, immigration, and 
     intelligence databases information systems containing 
     information relevant to homeland security are compatible; and
       (B) with respect to the functions under this paragraph, 
     ensuring compliance with Federal laws relating to privacy and 
     intelligence information.

     SEC. 102. TRANSFER OF AUTHORITIES, FUNCTIONS, PERSONNEL, AND 
                   ASSETS TO THE DEPARTMENT.

       The authorities, functions, personnel, and assets of the 
     following entities are transferred to the Department:
       (1) The Federal Emergency Management Agency, the 10 
     regional offices of which shall be maintained and 
     strengthened by the Department.
       (2) The United States Customs Service, which shall be 
     maintained as a distinct entity within the Department.
       (3) The law enforcement components of the Immigration and 
     Naturalization Service relating to Border Patrol, 
     Inspections, Investigations (interior enforcement), 
     Intelligence, Detention and Removal, and International 
     Affairs.
       (4) The United States Coast Guard, which shall be 
     maintained as a distinct entity within the Department.
       (5) The Critical Infrastructure Assurance Office of the 
     Department of Commerce.
       (6) The National Infrastructure Protection Center and the 
     National Domestic Preparedness Office of the Federal Bureau 
     of Investigation.
       (7) The Animal and Plant Health Inspection Service of the 
     Department of Agriculture, that portion of which administers 
     laws relating to agricultural quarantine inspections at 
     points of entry.

     SEC. 103. ESTABLISHMENT OF DIRECTORATES AND OFFICE.

       (a) Establishment of Directorates.--The following staff 
     directorates are established within the Department:
       (1) Directorate of Border and Transportation Protection.--
     The Directorate of Border and Transportation Protection, 
     which shall be responsible for the following:
       (A) Overseeing and coordinating all United States border 
     security activities.
       (B) Developing border and maritime security policy for the 
     United States.
       (C) Developing and implementing international standards for 
     enhanced security in transportation nodes.
       (D) Performing such other duties assigned by the Secretary.
       (2) Directorate of critical infrastructure protection.--The 
     Directorate of Critical Infrastructure Protection, which 
     shall be responsible for the following:
       (A) Acting as the Critical Information Technology, 
     Assurance, and Security Officer of the Department to 
     coordinate efforts to address the vulnerability of the United 
     States to electronic or physical attacks on critical 
     infrastructure of the United States, including utilities, 
     transportation nodes, and energy resources.
       (B) Overseeing the protection of such infrastructure and 
     the physical assets and information networks that make up 
     such infrastructure.
       (C) Ensuring the maintenance of a nucleus of cyber security 
     experts within the United States Government.
       (D) Enhancing sharing of information regarding cyber 
     security and physical security of the United States, tracking 
     vulnerabilities and proposing improved risk management 
     policies, and delineating the roles of various government 
     agencies in preventing, defending, and recovering from 
     attacks.
       (E) Coordinating with the Federal Communications Commission 
     in helping to establish cyber security policy, standards, and 
     enforcement mechanisms, and working closely with the Federal 
     Communications Commission on cyber security issues with 
     respect to international bodies.
       (F) Coordinating the activities of Information Sharing and 
     Analysis Centers to share information on threats, 
     vulnerabilities, individual incidents, and privacy issues 
     regarding United States homeland security.
       (G) Assuming the responsibilities carried out by the 
     Critical Infrastructure Assurance Office before the effective 
     date of this Act.
       (H) Assuming the responsibilities carried out by the 
     National Infrastructure Protection Center before the 
     effective date of this Act.
       (I) Performing such other duties assigned by the Secretary.
       (3) Directorate for emergency preparedness and response.--
     The Directorate for Emergency Preparedness and Response, 
     which shall be responsible for the following:
       (A) Carrying out all emergency preparedness and response 
     activities carried out by the Federal Emergency Management 
     Agency before the effective date of this Act.
       (B) Assuming the responsibilities carried out by the 
     National Domestic Preparedness Office before the effective 
     date of this Act.
       (C) Organizing and training local entities to respond to 
     emergencies and providing State and local authorities with 
     equipment for detection, protection, and decontamination in 
     an emergency involving weapons of mass destruction.
       (D) Overseeing Federal, State, and local emergency 
     preparedness training and exercise programs in keeping with 
     current intelligence estimates and providing a single staff 
     for Federal assistance for any emergency (including 
     emergencies caused by flood, earthquake, hurricane, disease, 
     or terrorist bomb).
       (E) Creating a National Crisis Action Center to act as the 
     focal point for monitoring emergencies and for coordinating 
     Federal support for State and local governments and the 
     private sector in crises.

[[Page S3877]]

       (F) Establishing training and equipment standards, 
     providing resource grants, and encouraging intelligence and 
     information sharing among the Department of Defense, the 
     Federal Bureau of Investigation, the Central Intelligence 
     Agency, State emergency management officials, and local first 
     responders.
       (G) Coordinating and integrating operational activities of 
     the Department of Defense, the National Guard, and other 
     Federal agencies into a Federal response plan.
       (H) Coordinating activities among private sector entities, 
     including entities within the medical community, with respect 
     to recovery, consequence management, and planning for 
     continuity of services.
       (I) Developing and managing a single response system for 
     national incidents in coordination with the Department of 
     Justice, the Federal Bureau of Investigation, the Department 
     of Health and Human Services, the Centers for Disease 
     Control, and other appropriate Federal departments and 
     agencies.
       (J) Maintaining Federal asset databases and supporting up-
     to-date State and local databases.
       (K) Performing such other duties as assigned by the 
     Secretary.
       (b) Establishment of Office of Science and Technology.--
       (1) In general.--There is established in the Department an 
     Office of Science and Technology.
       (2) Purpose.--The Office of Science and Technology shall 
     advise the Secretary regarding research and development 
     efforts and priorities for the directorates established in 
     subsection (a).

     SEC. 104. STEERING GROUP; COORDINATION COMMITTEE; AND 
                   ACCELERATION FUND.

       (a) Definitions.--In this section:
       (1) Coordination committee.--The term ``Coordination 
     Committee'' means the Homeland Security Science and 
     Technology Coordination Committee established under this 
     section.
       (2) Director.--The term ``Director'' means the Director of 
     the Office of Science and Technology.
       (3) Fund.--The term ``Fund'' means the Acceleration Fund 
     for Research and Development of Homeland Security 
     Technologies established under this section.
       (4) Homeland security research and development.--The term 
     ``homeland security research and development'' means research 
     and development of technologies that are applicable in the 
     detection of, prevention of, protection against, response to, 
     and recovery from homeland security threats, particularly 
     acts of terrorism.
       (5) Steering group.--The term ``Steering Group'' means the 
     Homeland Security Science and Technology Senior Steering 
     Group established under this section.
       (b) Purposes.--The purposes of this section are to--
       (1) establish a fund to leverage existing research and 
     development and accelerate the deployment of technology that 
     will serve to enhance homeland defense;
       (2) establish a committee and steering group to coordinate 
     and advise on issues relating to homeland security research 
     and development and administer the Fund; and
       (3) establish the responsibilities of the Director of the 
     Office of Science and Technology relating to homeland 
     security research and development.
       (c) Fund.--
       (1) Establishment.--There is established the Acceleration 
     Fund for Research and Development of Homeland Security 
     Technologies.
       (2) Use of fund.--The Fund may be used to--
       (A) accelerate research, development, testing, and 
     evaluation of critical homeland security technologies; and
       (B) support homeland security research and development.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated $200,000,000 to the Fund for fiscal year 
     2003.
       (d) Steering Group.--
       (1) Establishment.--There is established the Homeland 
     Security Science and Technology Senior Steering Group within 
     the Office of Science and Technology. The Director shall 
     chair the Steering Group.
       (2) Responsibilities.--The Steering Group shall--
       (A) provide recommendations and priorities to the Director; 
     and
       (B) assist the Director in establishing priorities and 
     forwarding recommendations on homeland security technology to 
     the Secretary.
       (3) Composition.--The Steering Group shall be composed, as 
     named by the Director, of senior research and development 
     officials representing all appropriate Federal departments 
     and agencies that conduct research and development relevant 
     for homeland security and combating terrorism.
       (4) Qualifications.--Each representative shall--
       (A) possess extensive experience in managing research and 
     development projects; and
       (B) be appointed by the head of the respective department 
     or agency.
       (5) Subgroups.--
       (A) In general.--At the discretion of the Director, the 
     Steering Group may be composed of subgroups with expertise in 
     specific homeland security areas.
       (B) Subgroup areas.--The Director may establish subgroups 
     in areas including--
       (i) information technology infrastructure;
       (ii) critical infrastructure;
       (iii) interoperability issues in communications technology;
       (iv) bioterrorism;
       (v) chemical, biological, radiological defense; and
       (vi) any other area as determined necessary.
       (e) Coordination Committee.--
       (1) Establishment.--There is established a Homeland 
     Security Science and Technology Coordination Committee within 
     the Office of Science and Technology. The Director shall 
     chair the Coordination Committee.
       (2) Composition.--The Coordination Committee shall be a 
     working level group composed of representatives managing 
     relevant agency research and development portfolios, 
     appointed by the head of each department or agency described 
     under subsection (d)(2).
       (3) Subgroups.--
       (A) In general.--At the discretion of the Director, the 
     Coordination Committee may be composed of subgroups with 
     relevant expertise in specific homeland security areas.
       (B) Subgroup areas.--The Director may establish subgroups 
     in areas, including--
       (i) information technology infrastructure;
       (ii) critical infrastructure;
       (iii) interoperability issues in Communications Technology;
       (iv) bioterrorism;
       (v) chemical, biological, radiological defense; and
       (vi) any other area as determined necessary.
       (4) Responsibilities.--The Coordination Committee shall 
     have the following responsibilities:
       (A) To facilitate effective communication among 
     departments, agencies, and other entities of the Federal 
     Government, with respect to the conduct of research and 
     development related to homeland security.
       (B) To identify, by consensus and on a yearly basis, 
     specific technology areas for which the Fund shall be used to 
     rapidly transition homeland security research and development 
     into deployed technology and reduce identified homeland 
     security vulnerabilities. The identified technology areas 
     shall, as determined by the Coordination Committee, be areas 
     in which there exist research and development projects that 
     address identified homeland security vulnerabilities and, 
     assuming single-year funding, can be accelerated to the stage 
     of prototyping, evaluating, transitioning, or deploying.
       (C) To administer the Fund, including--
       (i) issuing an annual multiagency program announcement 
     soliciting proposals from governmental entities, industry, 
     and academia;
       (ii) competitively selecting, on the basis of a merit-based 
     review, proposals that advance the state of deployed 
     technologies in the areas identified for that year;
       (iii) at the discretion of the Coordination Committee, 
     assigning 1 or more program managers from any department or 
     agency represented on the Coordination Committee to oversee, 
     administer, and execute a Fund project as the agent of the 
     Coordination Committee; and
       (iv) providing methods of funding administration, including 
     grant, cooperative agreement, or any other transaction.
       (f) Office of Science and Technology Responsibilities.--The 
     Director shall--
       (1) assist the Secretary, the Directorates, and cooperating 
     agencies in--
       (A) assessing and testing homeland security vulnerabilities 
     and possible threats;
       (B) evaluating and advising on maintaining talent resources 
     in key technology and skill areas required for homeland 
     security, including information security experts;
       (C) developing a system for sharing key homeland security 
     research and technology developments and opportunities with 
     appropriate Federal, State, local, and private sector 
     entities; and
       (D) proposing risk management strategies based on 
     technology developments;
       (2) assist the Directorate of Critical Infrastructure 
     Protection in the responsibilities of that Directorate;
       (3) with respect to expenditures from the Fund, exercise 
     acquisition authority consistent with the authority described 
     under section 2371 of title 10, United States Code, relating 
     to authorizing cooperative agreements and other transactions;
       (4) in hiring personnel to assist in the administration of 
     the Office of Science and Technology, have the authority to 
     exercise the personnel 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); and
       (5) develop and oversee the implementation of periodic 
     homeland security technology demonstrations, held at least 
     annually, for the purpose of improving contact between 
     technology developers, vendors, and acquisition personnel 
     associated with related industries.

     SEC. 105. REPORTING REQUIREMENTS.

       (a) Biennial Reports.--Every 2 years the Secretary shall 
     submit to Congress--
       (1) a report assessing the resources and requirements of 
     executive agencies relating to border security and emergency 
     preparedness issues; and
       (2) a report certifying the preparedness of the United 
     States to prevent, protect against, and respond to natural 
     disasters, cyber attacks, and incidents involving weapons of 
     mass destruction.
       (b) Additional Report.--Not later than 1 year after the 
     effective date of this Act, the

[[Page S3878]]

     Secretary shall submit to Congress a report--
       (1) assessing the progress of the Department in--
       (A) implementing this title; and
       (B) ensuring the core functions of each entity transferred 
     to the Department are maintained and strengthened; and
       (2) recommending any conforming changes in law necessary as 
     a result of the enactment and implementation of this title.

     SEC. 106. PLANNING, PROGRAMMING, AND BUDGETING PROCESS.

       The Secretary shall establish procedures to ensure that the 
     planning, programming, budgeting, and financial activities of 
     the Department comport with sound financial and fiscal 
     management principles. At a minimum, those procedures shall 
     provide for the planning, programming, and budgeting of 
     activities of the Department using funds that are available 
     for obligation for a limited number of years.

     SEC. 107. ENVIRONMENTAL PROTECTION, SAFETY, AND HEALTH 
                   REQUIREMENTS.

       The Secretary shall--
       (1) ensure that the Department complies with all applicable 
     environmental, safety, and health statutes and substantive 
     requirements; and
       (2) develop procedures for meeting such requirements.

     SEC. 108. SAVINGS PROVISIONS.

       (a) Continuing Effect of Legal Documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, recognitions of labor organizations, 
     collective bargaining agreements, certificates, licenses, 
     registrations, privileges, and other administrative actions--
       (1) which have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official thereof, or by a court of competent jurisdiction, in 
     the performance of functions which are transferred under this 
     title; and
       (2) which are in effect at the time this Act takes effect, 
     or were final before the effective date of this Act and are 
     to become effective on or after the effective date of this 
     Act,

     shall, to the extent related to such functions, continue in 
     effect according to their terms until modified, terminated, 
     superseded, set aside, or revoked in accordance with law by 
     the President, the Secretary of National Homeland Security or 
     other authorized official, a court of competent jurisdiction, 
     or by operation of law.
       (b) Proceedings Not Affected.--The provisions of this title 
     shall not affect any proceedings, including notices of 
     proposed rulemaking, or any application for any license, 
     permit, certificate, or financial assistance pending before 
     an agency at the time this title takes effect, with respect 
     to functions transferred by this title but such proceedings 
     and applications shall continue. Orders shall be issued in 
     such proceedings, appeals shall be taken therefrom, and 
     payments shall be made pursuant to such orders, as if this 
     title had not been enacted, and orders issued in any such 
     proceedings shall continue in effect until modified, 
     terminated, superseded, or revoked by a duly authorized 
     official, by a court of competent jurisdiction, or by 
     operation of law. Nothing in this subsection shall be deemed 
     to prohibit the discontinuance or modification of any such 
     proceeding under the same terms and conditions and to the 
     same extent that such proceeding could have been discontinued 
     or modified if this title had not been enacted.
       (c) Suits Not Affected.--The provisions of this title shall 
     not affect suits commenced before the effective date of this 
     Act, and in all such suits, proceedings shall be had, appeals 
     taken, and judgments rendered in the same manner and with the 
     same effect as if this title had not been enacted.
       (d) Nonabatement of Actions.--No suit, action, or other 
     proceeding commenced by or against an agency, or by or 
     against any individual in the official capacity of such 
     individual as an officer of an agency, shall abate by reason 
     of the enactment of this title.
       (e) Administrative Actions Relating to Promulgation of 
     Regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by an agency 
     relating to a function transferred under this title may be 
     continued by the Department of National Homeland Security 
     with the same effect as if this title had not been enacted.
       (f) Employment and Personnel.--
       (1) Interim authority for appointment and compensation.--
     Funds available to any official or component of any entity 
     the functions of which are transferred to the Department, may 
     with the approval of the Director of the Office of Management 
     and Budget, be used to pay the compensation and expenses of 
     any officer or employee under this title until such time as 
     funds for that purpose are otherwise available.
       (2) Employee rights.--
       (A) In general.--The Department or a subdivision within the 
     Department shall not be excluded under section 7103(b)(1) of 
     title 5, United States Code, from coverage under chapter 71 
     of that title unless the President determines that a majority 
     of employees within the Department or applicable subdivision 
     have, as their primary job duty, intelligence, 
     counterintelligence, or investigative work directly related 
     to terrorism investigation.
       (B) National security positions.--Employees transferred 
     under this title shall not be considered to perform work 
     which directly affects national security within the meaning 
     of section 7112(b)(6) of title 5, United States Code, unless 
     their primary job duty involves intelligence, 
     counterintelligence, or investigative duties directly related 
     to terrorism investigation. All employees transferred under 
     this title who are not in the counterterrorism positions 
     described in the preceding sentence shall continue to be 
     afforded the full rights and protections under chapter 71 of 
     title 5, United States Code.
       (g) No Affect on Intelligence Authorities.--The transfer of 
     authorities, functions, personnel, and assets of elements of 
     the United States Government under this title, or the 
     assumption of authorities and functions, by the Department of 
     Homeland Security under this title, shall not be construed, 
     in cases where such authorities, functions, personnel, and 
     assets, are engaged in intelligence activities as defined in 
     the National Security Act of 1947, as affecting the 
     authorities of the Director of Central Intelligence, the 
     Secretary of Defense, or the heads of departments and 
     agencies within the intelligence community.
       (h) References.--Any reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or pertaining to a department, 
     agency, or office from which a function is transferred by 
     this title--
       (1) to the head of such department, agency, or office is 
     deemed to refer to the Secretary of National Homeland 
     Security; or
       (2) to such department, agency, or office is deemed to 
     refer to the Department of National Homeland Security.

           TITLE II--NATIONAL OFFICE FOR COMBATING TERRORISM

     SEC. 201. NATIONAL OFFICE FOR COMBATING TERRORISM.

       (a) Establishment.--There is established within the 
     Executive Office of the President the National Office for 
     Combating Terrorism.
       (b) Officers.--
       (1) Director.--The head of the Office shall be the Director 
     of the National Office for Combating Terrorism, who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       (2) Executive schedule level i position.--Section 5312 of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``Director of the National Office for Combating 
     Terrorism.''.
       (3) Other officers.--The President shall assign to the 
     Office such other officers as the President, in consultation 
     with the Director, considers appropriate to discharge the 
     responsibilities of the Office.
       (c) Responsibilities.--Subject to the direction and control 
     of the President, the responsibilities of the Office shall 
     include the following:
       (1) To develop national objectives and policies for 
     combating terrorism.
       (2) To direct and review the development of a comprehensive 
     national assessment of terrorist threats and vulnerabilities 
     to those threats, which shall be--
       (A) conducted by the heads of relevant Federal agencies; 
     and
       (B) used in preparation of the Strategy.
       (3) To develop with the Secretary of National Homeland 
     Security, the Strategy under title III.
       (4) To coordinate, oversee, and evaluate the implementation 
     and execution of the Strategy by agencies of the Federal 
     Government with responsibilities for combating terrorism 
     under the Strategy, particularly those involving military, 
     intelligence, law enforcement, and diplomatic assets.
       (5)(A) To coordinate, with the advice of the Secretary of 
     National Homeland Security, the development of a 
     comprehensive annual budget for the programs and activities 
     under the Strategy, including the budgets of the military 
     departments and agencies within the National Foreign 
     Intelligence Program relating to international terrorism, but 
     excluding military programs, projects, or activities relating 
     to force protection.
       (B) To have the lead responsibility for budget 
     recommendations relating to military, intelligence, law 
     enforcement, and diplomatic assets in support of the 
     Strategy.
       (6) To exercise funding authority for Federal terrorism 
     prevention and response agencies in accordance with section 
     202.
       (7) To serve as an advisor to the National Security 
     Council.
       (d) Resources.--In consultation with the Director, the 
     President shall assign or allocate to the Office such 
     resources, including funds, personnel, and other resources, 
     as the President considers appropriate in order to facilitate 
     the discharge of the responsibilities of the Office.
       (e) Oversight by Congress.--The establishment of the Office 
     within the Executive Office of the President shall not be 
     construed as affecting access by Congress, or any committee 
     of Congress, to--
       (1) any information, document, record, or paper in the 
     possession of the Office or any study conducted by or at the 
     direction of the Director; or
       (2) any personnel of the Office.

     SEC. 202. FUNDING FOR STRATEGY PROGRAMS AND ACTIVITIES.

       (a) Budget Review.--In consultation with the Director of 
     the Office of Management and Budget, the Secretary of 
     National Homeland Security, and the heads of other executive 
     departments and agencies, the Director shall--
       (1) identify programs that contribute to the Strategy; and

[[Page S3879]]

       (2) in the development of the budget submitted by the 
     President to Congress under section 1105 of title 31, United 
     States Code, review and provide advice to the heads of 
     executive departments and agencies on the amount and use of 
     funding for programs identified under paragraph (1).
       (b) Submittal of Proposed Budgets to the Director.--
       (1) In general.--The head of each Federal terrorism 
     prevention and response agency shall submit to the Director 
     each year the proposed budget of that agency for the fiscal 
     year beginning in that year for programs and activities of 
     that agency under the Strategy during that fiscal year.
       (2) Date for submission.--The proposed budget of an agency 
     for a fiscal year under paragraph (1) shall be submitted to 
     the Director--
       (A) not later than the date on which the agency completes 
     the collection of information for purposes of the submission 
     by the President of a budget to Congress for that fiscal year 
     under section 1105 of title 31, United States Code; and
       (B) before that information is submitted to the Director of 
     the Office of Management and Budget for such purposes.
       (3) Format.--In consultation with the Director of the 
     Office of Management and Budget, the Director shall specify 
     the format for the submittal of proposed budgets under 
     paragraph (1).
       (c) Review of Proposed Budgets.--
       (1) In general.--The Director shall review each proposed 
     budget submitted to the Director under subsection (b).
       (2) Inadequate funding determination.--If the Director 
     determines under paragraph (1) that the proposed budget of an 
     agency for a fiscal year under subsection (b) is inadequate, 
     in whole or in part, to permit the implementation by the 
     agency during the fiscal year of the goals of the Strategy 
     applicable to the agency during the fiscal year, the Director 
     shall submit to the head of the agency--
       (A) a notice in writing of the determination; and
       (B) a statement of the proposed funding, and any specific 
     initiatives, that would (as determined by the Director) 
     permit the implementation by the agency during the fiscal 
     year of the goals of the Strategy applicable to the agency 
     during the fiscal year.
       (3) Adequate funding determination.--If the Director 
     determines under paragraph (1) that the proposed budget of an 
     agency for a fiscal year under subsection (b) is adequate to 
     permit the implementation by the agency during the fiscal 
     year of the goals of the Strategy applicable to the agency 
     during the fiscal year, the Director shall submit to the head 
     of the agency a notice in writing of that determination.
       (4) Maintenance of records.--The Director shall maintain a 
     record of--
       (A) each notice submitted under paragraph (2), including 
     any statement accompanying such notice; and
       (B) each notice submitted under paragraph (3).
       (d) Agency Response to Review of Proposed Budgets.--
       (1) Incorporation of proposed funding.--The head of a 
     Federal terrorism prevention and response agency that 
     receives a notice under subsection (c)(2) with respect to the 
     proposed budget of the agency for a fiscal year shall 
     incorporate the proposed funding, and any initiatives, set 
     forth in the statement accompanying the notice into the 
     information submitted to the Office of Management and Budget 
     in support of the proposed budget for the agency for the 
     fiscal year under section 1105 of title 31, United States 
     Code.
       (2) Additional information.--The head of each agency 
     described under paragraph (1) for a fiscal year shall include 
     as an appendix to the information submitted to the Office of 
     Management and Budget under that paragraph for the fiscal 
     year the following:
       (A) A summary of any modifications in the proposed budget 
     of such agency for the fiscal year under that paragraph.
       (B) An assessment of the effect of such modifications on 
     the capacity of such agency to perform its responsibilities 
     during the fiscal year other than its responsibilities under 
     the Strategy.
       (3) Submission to congress.--
       (A) In general.--Subject to subparagraph (B), the head of 
     each agency described under paragraph (1) for a fiscal year 
     shall submit to Congress a copy of the appendix submitted to 
     the Office of Management and Budget for the fiscal year under 
     paragraph (2) at the same time the budget of the President 
     for the fiscal year is submitted to Congress under section 
     1105 of title 31, United States Code.
       (B) Elements within intelligence programs.--In the 
     submission of the copy of the appendix to Congress under 
     subparagraph (A), those elements of the appendix which are 
     within the National Foreign Intelligence Program shall be 
     submitted to--
       (i) the Select Committee on Intelligence of the Senate; and
       (ii) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (e) Submittal of Revised Proposed Budgets.--
       (1) In general.--At the same time the head of a Federal 
     terrorism prevention and response agency submits its proposed 
     budget for a fiscal year to the Office of Management and 
     Budget for purposes of the submission by the President of a 
     budget to Congress for the fiscal year under section 1105 of 
     title 31, United States Code, the head of the agency shall 
     submit a copy of the proposed budget to the Director.
       (2) Review and decertification authority.--The Director of 
     the National Office for Combating Terrorism--
       (A) shall review each proposed budget submitted under 
     paragraph (1); and
       (B) in the case of a proposed budget for a fiscal year to 
     which subsection (c)(2) applies in the fiscal year, if the 
     Director determines as a result of the review that the 
     proposed budget does not include the proposed funding, and 
     any initiatives, set forth in the notice under that 
     subsection with respect to the proposed budget--
       (i) may decertify the proposed budget; and
       (ii) with respect to any proposed budget so decertified, 
     shall submit to Congress--

       (I) a notice of the decertification;
       (II) a copy of the notice submitted to the agency concerned 
     for the fiscal year under subsection (c)(2)(B); and
       (III) the budget recommendations made under this section.

       (f) National Terrorism Prevention and Response Program 
     Budget.--
       (1) In general.--For each fiscal year, following the 
     submittal of proposed budgets to the Director under 
     subsection (b), the Director shall, in consultation with the 
     Secretary of National Homeland Security and the head of each 
     Federal terrorism prevention and response agency concerned--
       (A) develop a consolidated proposed budget for such fiscal 
     year for all programs and activities under the Strategy for 
     such fiscal year; and
       (B) subject to paragraph (2), submit the consolidated 
     proposed budget to the President and to Congress.
       (2) Elements within intelligence programs.--In the 
     submission of the consolidated proposed budget to Congress 
     under paragraph (1)(B), those elements of the budget which 
     are within the National Foreign Intelligence Program shall be 
     submitted to--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (3) Designation of consolidated proposed budget.--The 
     consolidated proposed budget for a fiscal year under this 
     subsection shall be known as the National Terrorism 
     Prevention and Response Program Budget for the fiscal year.
       (g) Reprogramming and Transfer Requests.--
       (1) Approval by the director.--The head of a Federal 
     terrorism prevention and response agency may not submit to 
     Congress a request for the reprogramming or transfer of any 
     funds specified in the National Terrorism Prevention and 
     Response Program Budget for programs or activities of the 
     agency under the Strategy for a fiscal year in excess of 
     $5,000,000 without the approval of the Director.
       (2) Approval by the president.--The President may, upon the 
     request of the head of the agency concerned, permit the 
     submittal to Congress of a request previously disapproved by 
     the Director under paragraph (1) if the President determines 
     that the submittal of the request to Congress will further 
     the purposes of the Strategy.

 TITLE III--NATIONAL STRATEGY FOR COMBATING TERRORISM AND THE HOMELAND 
                           SECURITY RESPONSE

     SEC. 301. STRATEGY.

       (a) Development.--The Secretary and the Director shall 
     develop the National Strategy for Combating Terrorism and 
     Homeland Security Response for detection, prevention, 
     protection, response, and recovery to counter terrorist 
     threats, including the plans, policies, training, exercises, 
     evaluation, and interagency cooperation that address each 
     such action relating to such threats.
       (b) Responsibilities.--
       (1) Responsibilities of the secretary.--The Secretary shall 
     have responsibility for portions of the Strategy addressing 
     border security, critical infrastructure protection, 
     emergency preparation and response, and integrating State and 
     local efforts with activities of the Federal Government.
       (2) Responsibilities of the director.--The Director shall 
     have overall responsibility for development of the Strategy, 
     and particularly for those portions of the Strategy 
     addressing intelligence, military assets, law enforcement, 
     and diplomacy.
       (c) Contents.--The contents of the Strategy shall include--
       (1) policies and procedures to maximize the collection, 
     translation, analysis, exploitation, and dissemination of 
     information relating to combating terrorism and the homeland 
     security response throughout the Federal Government and with 
     State and local authorities;
       (2) plans for countering chemical, biological, 
     radiological, nuclear and explosives, and cyber threats;
       (3) plans for improving the resources of, coordination 
     among, and effectiveness of health and medical sectors for 
     detecting and responding to terrorist attacks on the 
     homeland;
       (4) specific measures to enhance cooperative efforts 
     between the public and private sectors in protecting against 
     terrorist attacks;
       (5) a review of measures needed to enhance transportation 
     security with respect to potential terrorist attacks; and
       (6) other critical areas.
       (d) Cooperation.--At the request of the Secretary or 
     Director, departments and

[[Page S3880]]

     agencies shall provide necessary information or planning 
     documents relating to the Strategy.
       (e) Interagency Council.--
       (1) Establishment.--There is established the National 
     Combating Terrorism and Homeland Security Response Council to 
     assist with preparation and implementation of the Strategy.
       (2) Membership.--The members of the Council shall be the 
     heads of the Federal terrorism prevention and response 
     agencies or their designees. The Secretary and Director shall 
     designate such agencies.
       (3) Co-chairs and meetings.--The Secretary and Director 
     shall co-chair the Council, which shall meet at their 
     direction.
       (f) Submission to Congress.--Not later than December 1, 
     2003, and each year thereafter in which a President is 
     inaugurated, the Secretary and the Director shall submit the 
     Strategy to Congress.
       (g) Updating.--Not later than December 1, 2005, and on 
     December 1, of every 2 years thereafter, the Secretary and 
     the Director shall submit to Congress an updated version of 
     the Strategy.
       (h) Progress Reports.--Not later than December 1, 2004, and 
     on December 1, of each year thereafter, the Secretary and the 
     Director may submit to Congress a report that--
       (1) describes the progress on implementation of the 
     Strategy; and
       (2) provides recommendations for improvement of the 
     Strategy and the implementation of the Strategy.

     SEC. 302. NATIONAL COMBATING TERRORISM STRATEGY PANEL.

       (a) Establishment.--The Secretary and the Director shall 
     establish a nonpartisan, independent panel to be known as the 
     National Combating Terrorism Strategy Panel (in this section 
     referred to as the ``Panel'').
       (b) Membership.--
       (1) Appointment.--The Panel shall be composed of a 
     chairperson and 8 other individuals appointed by the 
     Secretary and the Director, in consultation with the chairman 
     and ranking member of the Committee on Governmental Affairs 
     of the Senate and the chairman and ranking member of the 
     Committee on Government Reform of the House of 
     Representatives, from among individuals in the private sector 
     who are recognized experts in matters relating to the 
     homeland security of the United States.
       (2) Terms.--
       (A) In general.--An individual shall be appointed to the 
     Panel for an 18-month term.
       (B) Term periods.--Terms on the Panel shall not be 
     continuous. All terms shall be for the 18-month period which 
     begins 12 months before each date a report is required to be 
     submitted under subsection (l)(2)(A).
       (C) Multiple terms.--An individual may serve more than 1 
     term.
       (c) Duties.--The Panel shall--
       (1) conduct and submit to the Secretary the assessment of 
     the Strategy; and
       (2) conduct the independent, alternative assessment of 
     homeland security measures required under this section.
       (d) Alternative Assessment.--The Panel shall submit to the 
     Secretary an independent assessment of the optimal policies 
     and programs to combat terrorism, including homeland security 
     measures. As part of the assessment, the Panel shall, to the 
     extent practicable, estimate the funding required by fiscal 
     year to achieve these optimal approaches.
       (e) Information From Federal Agencies.--
       (1) In general.--Subject to paragraph (2), the Panel may 
     secure directly from any Federal department or agency such 
     information as the Panel considers necessary to carry out 
     this section. Upon request of the Chairperson, the head of 
     such department or agency shall furnish such information to 
     the Panel.
       (2) Intelligence information.--The provision of information 
     under this paragraph related to intelligence shall be 
     provided in accordance with procedures established by the 
     Director of Central Intelligence and in accordance with 
     section 103(d)(3) of the National Security Act of 1947 (50 
     U.S.C. 403-3(d)(3)).
       (f) Compensation of Members.--Each member of the Panel 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Panel.
       (g) Travel Expenses.--The members of the Panel shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Panel.
       (h) Staff.--
       (1) In general.--The Chairperson of the Panel may, without 
     regard to the civil service laws and regulations, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Panel to perform 
     its duties. The employment of an executive director shall be 
     subject to confirmation by the Panel.
       (2) Compensation.--The Chairperson of the Panel may fix the 
     compensation of the executive director and other personnel 
     without regard to chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay for the executive director and other personnel 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title.
       (3) Personnel as federal employees.--
       (A) In general.--The executive director and any personnel 
     of the Panel who are employees shall be employees under 
     section 2105 of title 5, United States Code, for purposes of 
     chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.
       (B) Members of panel.--Subparagraph (A) shall not be 
     construed to apply to members of the Panel.
       (4) Reduction of staff.--During periods that members are 
     not serving terms on the Panel, the executive director shall 
     reduce the number and hours of employees to the minimum 
     necessary to--
       (A) provide effective continuity of the Panel; and
       (B) minimize personnel costs of the Panel.
       (i) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Panel without reimbursement, 
     and such detail shall be without interruption or loss of 
     civil service status or privilege.
       (j) Administrative Provisions.--
       (1) Use of mail and printing.--The Panel may use the United 
     States mails and obtain printing and binding services in the 
     same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       (2) Support services.--The Secretary shall furnish the 
     Panel any administrative and support services requested by 
     the Panel.
       (3) Gifts.--The Panel may accept, use, and dispose of gifts 
     or donations of services or property.
       (k) Payment of Panel Expenses.--The compensation, travel 
     expenses, and per diem allowances of members and employees of 
     the Panel shall be paid out of funds available to the 
     Department for the payment of compensation, travel 
     allowances, and per diem allowances, respectively, of 
     civilian employees of the Department. The other expenses of 
     the Panel shall be paid out of funds available to the 
     Department for the payment of similar expenses incurred by 
     the Department.
       (l) Reports.--
       (1) Preliminary report.--
       (A) Report to secretary.--Not later than July 1, 2004, the 
     Panel shall submit to the Secretary and the Director a 
     preliminary report setting forth the activities and the 
     findings and recommendations of the Panel under subsection 
     (d), including any recommendations for legislation that the 
     Panel considers appropriate.
       (B) Report to congress.--Not later than 30 days after the 
     submission of the report under subparagraph (A), the 
     Secretary and the Director shall submit to the committees 
     referred to under subsection (b) a copy of that report with 
     the comments of the Secretary on the report.
       (2) Quadrennial reports.--
       (A) Reports to secretary.--Not later than December 1, 2004, 
     and not later than December 1 every 4 years thereafter, the 
     Panel shall submit to the Secretary and the Director a report 
     setting forth the activities and the findings and 
     recommendations of the Panel under subsection (d), including 
     any recommendations for legislation that the Panel considers 
     appropriate.
       (B) Reports to congress.--Not later than 60 days after each 
     report is submitted under subparagraph (A), the Secretary 
     shall submit to the committees referred to under subsection 
     (b) a copy of the report with the comments of the Secretary 
     and the Director on the report.

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

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