[Congressional Record Volume 148, Number 146 (Wednesday, November 13, 2002)]
[Senate]
[Pages S10894-S10959]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4898. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 4738 proposed by Mr. Gramm (for himself, Mr. Miller, 
Mr. McConnell, Mr. Thompson, Mr. Stevens, Mr. Hagel, Mr. Hutchinson, 
and Mr. Bunning) to the amendment SA 4471 proposed by Mr. Lieberman to 
the bill H.R. 5005, to establish the Department of Homeland Security, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 24, strike line 4 and insert the following:
       (19) On behalf of the Secretary, subject to disapproval by 
     the President, to direct the agencies described under 
     subsection (f)(2) to provide intelligence information, 
     analyses of intelligence information, and such other 
     intelligence-related information as the Assistant Secretary 
     for Information Analysis determines necessary.
       (20) To perform such other duties relating to

                                 ______
                                 
  SA 4899. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 4738 proposed by Mr. Gramm (for himself, Mr. Miller, 
Mr. McConnell, Mr. Thompson, Mr. Stevens, Mr. Hagel, Mr. Hutchinson, 
and Mr. Bunning) to the amendment SA 4471 proposed by Mr. Lieberman to 
the bill H.R. 5005, to establish the Department of Homeland Security, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 96, strike line 2 and all that follows through page 
     109, line 13, and insert the following:

     SEC. 730. 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 by the 
              Secretary.
``9702. Establishment of human resources management system by the 
              President.

     ``Sec. 9701. Establishment of human resources management 
       system by the Secretary

       ``(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); or
       ``(ii) any provision of law implementing any provision of 
     law referred to in section 2302(b)(1) 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

[[Page S10895]]

     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 direct participation of employee 
     representatives in the planning development, and 
     implementation of any human resources management system or 
     adjustments under this section, the Secretary 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 at least 60 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) Preimplementation requirements.--If the Secretary and 
     the Director decide to implement a proposal described in 
     subparagraph (A), they shall before implementation--
       ``(i) give each representative details of the decision to 
     implement the proposal, together with the information upon 
     which the decision is based;
       ``(ii) give each representative an opportunity to make 
     recommendations with respect to the proposal; and
       ``(iii) give such recommendation full and fair 
     consideration, including the providing of reasons to an 
     employee representative if any of its recommendations are 
     rejected.
       ``(C) 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. 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; and
       ``(C) 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 fully 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) Sunset Provision.--Effective 5 years after the 
     conclusion of the transition period defined under section 801 
     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 and section 9702) shall 
     cease to be available.

     ``Sec. 9702. Establishment of human resources management 
       system by the President

       ``The authority under section 9701 to establish a human 
     resources management system shall be exercised only when the 
     President issues an order determining that--
       ``(1) the affected agency or subdivision has, as a primary 
     function, intelligence, counterintelligence, investigative, 
     or national security work;
       ``(2) the provisions of chapter 43, 51, 53, 71, 75, or 77 
     cannot be applied to that agency or subdivision in a manner 
     consistent with national security requirements and 
     considerations;
       ``(3) the mission and responsibilities of the affected 
     agency or subdivision have materially changed; and
       ``(4) a majority of the employees within that agency or 
     subdivision have, as their primary duty, intelligence, 
     counterintelligence, or investigative work directly related 
     to terrorism investigation.''.
       (3) Clerical 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 pursuant to 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 one 
     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. 731. LABOR-MANAGEMENT RELATIONS.

       (a) Exclusionary Authority.--
       (1) In general.--Subject to paragraph (2), the President 
     may issue an order excluding any executive agency, or 
     subdivision thereof, from coverage under chapter 71 of title 
     5, United States Code, if the President determines that--
       (A) the agency or subdivision has, as a primary function, 
     intelligence, counterintelligence, investigative, or national 
     security work; and
       (B) the provisions of such chapter 71 cannot be applied to 
     that agency or subdivision in a matter consistent with 
     national security requirements and considerations.
       (2) Additional determination.--In addition to the 
     requirements under paragraph (1), the President may issue an 
     order excluding any executive agency, or subdivision thereof, 
     transferred to the Department under this Act, from coverage 
     under chapter 71 of title 5, United States Code, only if the 
     President determines that--
       (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.
       (3) Exclusions allowable.--Nothing in paragraph (1) or (2) 
     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 title 5, United 
     States Code; 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.--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 under this Act, continue to be 
     so recognized for such purposes, unless--
       (1) the mission and responsibilities of the personnel in 
     such unit (or subdivision), or

[[Page S10896]]

     the threats of domestic terrorism being addressed by the 
     personnel in such unit (or subdivision), materially change; 
     and
       (2) a substantial number of the employees within such unit 
     (or subdivision) have as their primary duty intelligence, 
     counterintelligence, or investigative work directly related 
     to terrorism investigation.
       (c) 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.
  SA 4900. Mr. FEINGOLD proposed an amendment to the bill H.R. 5005, to 
establish the Department of Homeland Security, and for other purposes; 
as follows:

       At the appropriate place in the bill insert the following 
     sections:

     SEC.  . COST OF LIVING ADJUSTMENT FOR MEMBERS OF CONGRESS.

       Notwithstanding any other provision of law, no adjustment 
     shall be made under section 601(a) of the Legislative 
     Reorganization Act of 1946 (2 U.S.C. 31) (relating to cost of 
     living adjustments for Members of Congress) during fiscal 
     year 2003.

                                 ______
                                 
  SA 4901. Mr. THOMPSON (for Mr. Gramm (for himself, Mr. Miller, Mr. 
Thompson, Mr. Barkley, and Mr. Voinovich)) proposed an amendment to the 
bill H.R. 5005, to establish the Department of Homeland Security, and 
for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     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.

[[Page S10897]]

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.

[[Page S10898]]

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.

[[Page S10899]]

       (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.

[[Page S10900]]

       (10) To consult with the Director of Central Intelligence 
     and other appropriate intelligence, law enforcement, or other 
     elements of the Federal Government to establish collection 
     priorities and strategies for information, including law 
     enforcement-related information, relating to threats of 
     terrorism against the United States through such means as the 
     representation of the Department in discussions regarding 
     requirements and priorities in the collection of such 
     information.
       (11) To consult with State and local governments and 
     private sector entities to ensure appropriate exchanges of 
     information, including law enforcement-related information, 
     relating to threats of terrorism against the United States.
       (12) To ensure that--
       (A) any material received pursuant to this Act is protected 
     from unauthorized disclosure and handled and used only for 
     the performance of official duties; and
       (B) any intelligence information under this Act is shared, 
     retained, and disseminated consistent with the authority of 
     the Director of Central Intelligence to protect intelligence 
     sources and methods under the National Security Act of 1947 
     (50 U.S.C. 401 et seq.) and related procedures and, as 
     appropriate, similar authorities of the Attorney General 
     concerning sensitive law enforcement information.
       (13) To request additional information from other agencies 
     of the Federal Government, State and local government 
     agencies, and the private sector relating to threats of 
     terrorism in the United States, or relating to other areas of 
     responsibility assigned by the Secretary, including the entry 
     into cooperative agreements through the Secretary to obtain 
     such information.
       (14) To establish and utilize, in conjunction with the 
     chief information officer of the Department, a secure 
     communications and information technology infrastructure, 
     including data-mining and other advanced analytical tools, in 
     order to access, receive, and analyze data and information in 
     furtherance of the responsibilities under this section, and 
     to disseminate information acquired and analyzed by the 
     Department, as appropriate.
       (15) To ensure, in conjunction with the chief information 
     officer of the Department, that any information databases and 
     analytical tools developed or utilized by the Department--
       (A) are compatible with one another and with relevant 
     information databases of other agencies of the Federal 
     Government; and
       (B) treat information in such databases in a manner that 
     complies with applicable Federal law on privacy.
       (16) To coordinate training and other support to the 
     elements and personnel of the Department, other agencies of 
     the Federal Government, and State and local governments that 
     provide information to the Department, or are consumers of 
     information provided by the Department, in order to 
     facilitate the identification and sharing of information 
     revealed in their ordinary duties and the optimal utilization 
     of information received from the Department.
       (17) To coordinate with elements of the intelligence 
     community and with Federal, State, and local law enforcement 
     agencies, and the private sector, as appropriate.
       (18) To provide intelligence and information analysis and 
     support to other elements of the Department.
       (19) To perform such other duties relating to such 
     responsibilities as the Secretary may provide.
       (e) Staff.--
       (1) In general.--The Secretary shall provide the 
     Directorate with a staff of analysts having appropriate 
     expertise and experience to assist the Directorate in 
     discharging responsibilities under this section.
       (2) Private sector analysts.--Analysts under this 
     subsection may include analysts from the private sector.
       (3) Security clearances.--Analysts under this subsection 
     shall possess security clearances appropriate for their work 
     under this section.
       (f) Detail of Personnel.--
       (1) In general.--In order to assist the Directorate in 
     discharging responsibilities under this section, personnel of 
     the agencies referred to in paragraph (2) may be detailed to 
     the Department for the performance of analytic functions and 
     related duties.
       (2) Covered agencies.--The agencies referred to in this 
     paragraph are as follows:
       (A) The Department of State.
       (B) The Central Intelligence Agency.
       (C) The Federal Bureau of Investigation.
       (D) The National Security Agency.
       (E) The National Imagery and Mapping Agency.
       (F) The Defense Intelligence Agency.
       (G) Any other agency of the Federal Government that the 
     President considers appropriate.
       (3) Cooperative agreements.--The Secretary and the head of 
     the agency concerned may enter into cooperative agreements 
     for the purpose of detailing personnel under this subsection.
       (4) Basis.--The detail of personnel under this subsection 
     may be on a reimbursable or non-reimbursable basis.
       (g) Functions Transferred.--In accordance with title XV, 
     there shall be transferred to the Secretary, for assignment 
     to the Under Secretary for Information Analysis and 
     Infrastructure Protection under this section, the functions, 
     personnel, assets, and liabilities of the following:
       (1) The National Infrastructure Protection Center of the 
     Federal Bureau of Investigation (other than the Computer 
     Investigations and Operations Section), including the 
     functions of the Attorney General relating thereto.
       (2) The National Communications System of the Department of 
     Defense, including the functions of the Secretary of Defense 
     relating thereto.
       (3) The Critical Infrastructure Assurance Office of the 
     Department of Commerce, including the functions of the 
     Secretary of Commerce relating thereto.
       (4) The National Infrastructure Simulation and Analysis 
     Center of the Department of Energy and the energy security 
     and assurance program and activities of the Department, 
     including the functions of the Secretary of Energy relating 
     thereto.
       (5) The Federal Computer Incident Response Center of the 
     General Services Administration, including the functions of 
     the Administrator of General Services relating thereto.
       (h) Inclusion of Certain Elements of the Department as 
     Elements of the Intelligence Community.--Section 3(4) of the 
     National Security Act of 1947 (50 U.S.C. 401(a)) is amended--
       (1) by striking ``and'' at the end of subparagraph (I);
       (2) by redesignating subparagraph (J) as subparagraph (K); 
     and
       (3) by inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) the elements of the Department of Homeland Security 
     concerned with the analyses of foreign intelligence 
     information; and''.

     SEC. 202. ACCESS TO INFORMATION.

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

[[Page S10901]]

     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

[[Page S10902]]

     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.

[[Page S10903]]

       (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.

[[Page S10904]]

       (2) For the fiscal year preceding the fiscal year for which 
     such budget is submitted, a description of the activities 
     carried out by the Office and an evaluation of the extent to 
     which those activities successfully meet the needs assessed 
     under paragraph (1)(A) in previous reports.

     SEC. 233. DEFINITION OF LAW ENFORCEMENT TECHNOLOGY.

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

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

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

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

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

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

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

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

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

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

     SEC. 301. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

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

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

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

     SEC. 303. FUNCTIONS TRANSFERRED.

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

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

       (a) In General.--With respect to civilian human health-
     related research and development activities relating to 
     countermeasures for chemical, biological, radiological, and 
     nuclear and other emerging terrorist threats

[[Page S10905]]

     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.

[[Page S10906]]

     SEC. 307. HOMELAND SECURITY ADVANCED RESEARCH PROJECTS 
                   AGENCY.

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

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

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

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

       (a) Authority to Utilize National Laboratories and Sites.--
       (1) In general.--In carrying out the missions of the 
     Department, the Secretary may utilize the Department of 
     Energy national laboratories and sites through any 1 or more 
     of the following methods, as the Secretary considers 
     appropriate:
       (A) A joint sponsorship arrangement referred to in 
     subsection (b).
       (B) A direct contract between the Department and the 
     applicable Department of Energy laboratory or site, subject 
     to subsection (c).
       (C) Any ``work for others'' basis made available by that 
     laboratory or site.
       (D) Any other method provided by law.
       (2) Acceptance and Performance by Labs and Sites.--
     Notwithstanding any other law governing the administration, 
     mission, use, or operations of any of the Department of 
     Energy national laboratories and sites, such laboratories and 
     sites are authorized to accept and perform work for the 
     Secretary, consistent with resources provided, and perform 
     such work on an equal basis to other missions at the 
     laboratory and not on a noninterference basis with other 
     missions of such laboratory or site.
       (b) Joint Sponsorship Arrangements.--
       (1) Laboratories.--The Department may be a joint sponsor, 
     under a multiple agency sponsorship arrangement with the 
     Department of Energy, of 1 or more Department of Energy 
     national laboratories in the performance of work.
       (2) Sites.--The Department may be a joint sponsor of a 
     Department of Energy site in

[[Page S10907]]

     the performance of work as if such site were a federally 
     funded research and development center and the work were 
     performed under a multiple agency sponsorship arrangement 
     with the Department.
       (3) Primary sponsor.--The Department of Energy shall be the 
     primary sponsor under a multiple agency sponsorship 
     arrangement referred to in paragraph (1) or (2).
       (4) Lead agent.--The Secretary of Energy shall act as the 
     lead agent in coordinating the formation and performance of a 
     joint sponsorship arrangement under this subsection between 
     the Department and a Department of Energy national laboratory 
     or site.
       (5) Federal acquisition regulation.--Any work performed by 
     a Department of Energy national laboratory or site under a 
     joint sponsorship arrangement under this subsection shall 
     comply with the policy on the use of federally funded 
     research and development centers under the Federal 
     Acquisition Regulations.
       (6) Funding.--The Department shall provide funds for work 
     at the Department of Energy national laboratories or sites, 
     as the case may be, under a joint sponsorship arrangement 
     under this subsection under the same terms and conditions as 
     apply to the primary sponsor of such national laboratory 
     under section 303(b)(1)(C) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253 (b)(1)(C)) 
     or of such site to the extent such section applies to such 
     site as a federally funded research and development center by 
     reason of this subsection.
       (c) Separate Contracting.--To the extent that programs or 
     activities transferred by this Act from the Department of 
     Energy to the Department of Homeland Security are being 
     carried out through direct contracts with the operator of a 
     national laboratory or site of the Department of Energy, the 
     Secretary of Homeland Security and the Secretary of Energy 
     shall ensure that direct contracts for such programs and 
     activities between the Department of Homeland Security and 
     such operator are separate from the direct contracts of the 
     Department of Energy with such operator.
       (d) Authority With Respect to Cooperative Research and 
     Development Agreements and Licensing Agreements.--In 
     connection with any utilization of the Department of Energy 
     national laboratories and sites under this section, the 
     Secretary may permit the director of any such national 
     laboratory or site to enter into cooperative research and 
     development agreements or to negotiate licensing agreements 
     with any person, any agency or instrumentality, of the United 
     States, any unit of State or local government, and any other 
     entity under the authority granted by section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a). Technology may be transferred to a non-Federal party 
     to such an agreement consistent with the provisions of 
     sections 11 and 12 of that Act (15 U.S.C. 3710, 3710a).
       (e) Reimbursement of Costs.--In the case of an activity 
     carried out by the operator of a Department of Energy 
     national laboratory or site in connection with any 
     utilization of such laboratory or site under this section, 
     the Department of Homeland Security shall reimburse the 
     Department of Energy for costs of such activity through a 
     method under which the Secretary of Energy waives any 
     requirement for the Department of Homeland Security to pay 
     administrative charges or personnel costs of the Department 
     of Energy or its contractors in excess of the amount that the 
     Secretary of Energy pays for an activity carried out by such 
     contractor and paid for by the Department of Energy.
       (f) Laboratory Directed Research and Development by the 
     Department of Energy.--No funds authorized to be appropriated 
     or otherwise made available to the Department in any fiscal 
     year may be obligated or expended for laboratory directed 
     research and development activities carried out by the 
     Department of Energy unless such activities support the 
     missions of the Department of Homeland Security.
       (g) Office for National Laboratories.--There is established 
     within the Directorate of Science and Technology an Office 
     for National Laboratories, which shall be responsible for the 
     coordination and utilization of the Department of Energy 
     national laboratories and sites under this section in a 
     manner to create a networked laboratory system for the 
     purpose of supporting the missions of the Department.
       (h) Department of Energy Coordination on Homeland Security 
     Related Research.--The Secretary of Energy shall ensure that 
     any research, development, test, and evaluation activities 
     conducted within the Department of Energy that are directly 
     or indirectly related to homeland security are fully 
     coordinated with the Secretary to minimize duplication of 
     effort and maximize the effective application of Federal 
     budget resources.

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

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

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

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

     SEC. 312. HOMELAND SECURITY INSTITUTE.

       (a) Establishment.--The Secretary shall establish a 
     federally funded research and development center to be known 
     as the

[[Page S10908]]

     ``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 reseach 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);

[[Page S10909]]

     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).

[[Page S10910]]

       (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

[[Page S10911]]

     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).

[[Page S10912]]

       (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,

[[Page S10913]]

     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

[[Page S10914]]

     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

[[Page S10915]]

     Citizenship and Immigration Services for allocation to the 
     appropriate component of the Department. Unexpended funds 
     transferred pursuant to this paragraph shall be used only for 
     the purposes for which the funds were originally authorized 
     and appropriated. The Secretary shall have the right to 
     adjust or realign transfers of funds and personnel effected 
     pursuant to this subtitle for a period of 2 years after the 
     effective date specified in section 455.

     SEC. 457. FUNDING FOR CITIZENSHIP AND IMMIGRATION SERVICES.

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

     SEC. 458. BACKLOG ELIMINATION.

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

     SEC. 459. REPORT ON IMPROVING IMMIGRATION SERVICES.

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

     SEC. 460. REPORT ON RESPONDING TO FLUCTUATING NEEDS.

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

     SEC. 461. APPLICATION OF INTERNET-BASED TECHNOLOGIES.

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

     SEC. 462. CHILDREN'S AFFAIRS.

       (a) Transfer of Functions.--There are transferred to the 
     Director of the Office of Refugee Resettlement of the 
     Department of Health and Human Services functions under the 
     immigration laws of the United States with respect to the 
     care of unaccompanied alien children that were vested by 
     statute in, or performed by, the Commissioner of Immigration 
     and Naturalization (or any officer, employee, or component of 
     the Immigration and Naturalization Service) immediately 
     before the effective date specified in subsection (d).
       (b) Functions.--
       (1) In general.--Pursuant to the transfer made by 
     subsection (a), the Director of the Office of Refugee 
     Resettlement shall be responsible for--
       (A) coordinating and implementing the care and placement of 
     unaccompanied alien children who are in Federal custody by 
     reason of their immigration status, including developing a 
     plan to be submitted to Congress on how to ensure that 
     qualified and independent legal counsel is timely appointed 
     to represent the interests of each such child, consistent 
     with the law regarding appointment of counsel that is in 
     effect on the date of the enactment of this Act;
       (B) ensuring that the interests of the child are considered 
     in decisions and actions relating to the care and custody of 
     an unaccompanied alien child;
       (C) making placement determinations for all unaccompanied 
     alien children who are in Federal custody by reason of their 
     immigration status;
       (D) implementing the placement determinations;
       (E) implementing policies with respect to the care and 
     placement of unaccompanied alien children;
       (F) identifying a sufficient number of qualified 
     individuals, entities, and facilities to house unaccompanied 
     alien children;
       (G) overseeing the infrastructure and personnel of 
     facilities in which unaccompanied alien children reside;
       (H) reuniting unaccompanied alien children with a parent 
     abroad in appropriate cases;
       (I) compiling, updating, and publishing at least annually a 
     state-by-state list of professionals or other entities 
     qualified to provide guardian and attorney representation 
     services for unaccompanied alien children;
       (J) maintaining statistical information and other data on 
     unaccompanied alien children for whose care and placement the 
     Director is responsible, which shall include--
       (i) biographical information, such as a child's name, 
     gender, date of birth, country of birth, and country of 
     habitual residence;
       (ii) the date on which the child came into Federal custody 
     by reason of his or her immigration status;
       (iii) information relating to the child's placement, 
     removal, or release from each facility in which the child has 
     resided;
       (iv) in any case in which the child is placed in detention 
     or released, an explanation relating to the detention or 
     release; and
       (v) the disposition of any actions in which the child is 
     the subject;
       (K) collecting and compiling statistical information from 
     the Department of Justice, the Department of Homeland 
     Security, and the Department of State on each department's 
     actions relating to unaccompanied alien children; and
       (L) conducting investigations and inspections of facilities 
     and other entities in which unaccompanied alien children 
     reside.
       (2) Coordination with other entities; no release on own 
     recognizance.--In making determinations described in 
     paragraph (1)(C), the Director of the Office of Refugee 
     Resettlement--
       (A) shall consult with appropriate juvenile justice 
     professionals, the Director of the Bureau of Citizenship and 
     Immigration Services, and the Assistant Secretary of the 
     Bureau of Border Security to ensure that such determinations 
     ensure that unaccompanied alien children described in such 
     subparagraph--
       (i) are likely to appear for all hearings or proceedings in 
     which they are involved;
       (ii) are protected from smugglers, traffickers, or others 
     who might seek to victimize or otherwise engage them in 
     criminal, harmful, or exploitive activity; and
       (iii) are placed in a setting in which they not likely to 
     pose a danger to themselves or others; and
       (B) shall not release such children upon their own 
     recognizance.
       (3) Duties with respect to foster care.--In carrying out 
     the duties described in paragraph (1)(G), the Director of the 
     Office of Refugee Resettlement is encouraged to use the 
     refugee children foster care system established pursuant to 
     section 412(d) of the Immigration and Nationality Act (8 
     U.S.C. 1522(d)) for the placement of unaccompanied alien 
     children.
       (c) Rule of Construction.--Nothing in this section may be 
     construed to transfer the

[[Page S10916]]

     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-

[[Page S10917]]

     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

[[Page S10918]]

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

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

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

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

     SEC. 502. RESPONSIBILITIES.

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

     SEC. 503. FUNCTIONS TRANSFERRED.

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

     SEC. 504. NUCLEAR INCIDENT RESPONSE.

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

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

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

     SEC. 506. DEFINITION.

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

     SEC. 507. ROLE OF FEDERAL EMERGENCY MANAGEMENT AGENCY.

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

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

       To the maximum extent practicable, the Secretary shall use 
     national private sector

[[Page S10919]]

     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.

[[Page S10920]]

       (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

[[Page S10921]]

     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

[[Page S10922]]

     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;

[[Page S10923]]

       (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

[[Page S10924]]

       ``(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

[[Page S10925]]

     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),

[[Page S10926]]

     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

[[Page S10927]]

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

     SEC. 875. MISCELLANEOUS AUTHORITIES.

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

     SEC. 876. MILITARY ACTIVITIES.

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

     SEC. 877. REGULATORY AUTHORITY AND PREEMPTION.

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

     SEC. 878. COUNTERNARCOTICS OFFICER.

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

     SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.

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

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

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

     SEC. 881. REVIEW OF PAY AND BENEFIT PLANS.

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

     SEC. 882. OFFICE FOR NATIONAL CAPITAL REGION COORDINATION.

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

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

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

[[Page S10928]]

     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

[[Page S10929]]

     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.--

[[Page S10930]]

       (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.''.

[[Page S10931]]

       (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

[[Page S10932]]

     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

[[Page S10933]]

     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

[[Page S10934]]

     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

[[Page S10935]]

     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--

[[Page S10936]]

       (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

[[Page S10937]]

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

     SEC. 1115. PERSONNEL MANAGEMENT DEMONSTRATION PROJECT.

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

                         Subtitle C--Explosives

     SEC. 1121. SHORT TITLE.

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

     SEC. 1122. PERMITS FOR PURCHASERS OF EXPLOSIVES.

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

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

       (a) Distribution of Explosives.--Section 842(d) of title 
     18, United States Code, is amended--
       (1) in paragraph (5), by striking ``or'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``or who has been committed to a mental 
     institution;''; and
       (3) by adding at the end the following:
       ``(7) is an alien, other than an alien who--
       ``(A) is lawfully admitted for permanent residence (as 
     defined in section 101 (a)(20) of the Immigration and 
     Nationality Act); or
       ``(B) is in lawful nonimmigrant status, is a refugee 
     admitted under section 207 of the Immigration and Nationality 
     Act (8 U.S.C. 1157), or is in asylum status under section 208 
     of the Immigration and Nationality Act (8 U.S.C. 1158), and--
       ``(i) is a foreign law enforcement officer of a friendly 
     foreign government, as determined by the Secretary in 
     consultation with the Secretary of State, entering the United 
     States on official law enforcement business, and the 
     shipping, transporting, possession, or receipt of explosive 
     materials is in furtherance of this official law enforcement 
     business;
       ``(ii) is a person having the power to direct or cause the 
     direction of the management

[[Page S10938]]

     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''.

[[Page S10939]]

     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

[[Page S10940]]

     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:

[[Page S10941]]

       ``(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,''.

[[Page S10942]]

       (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.--

[[Page S10943]]

       ``(1) In general.--The Under Secretary shall only be 
     obligated to provide the training, supervision, and equipment 
     necessary for a pilot to be a Federal flight deck officer 
     under this section at no expense to the pilot or the air 
     carrier employing the pilot.
       ``(2) Training.--
       ``(A) In general.--The Under Secretary shall base the 
     requirements for the training of Federal flight deck officers 
     under subsection (b) on the training standards applicable to 
     Federal air marshals; except that the Under Secretary shall 
     take into account the differing roles and responsibilities of 
     Federal flight deck officers and Federal air marshals.
       ``(B) Elements.--The training of a Federal flight deck 
     officer shall include, at a minimum, the following elements:
       ``(i) Training to ensure that the officer achieves the 
     level of proficiency with a firearm required under 
     subparagraph (C)(i).
       ``(ii) Training to ensure that the officer maintains 
     exclusive control over the officer's firearm at all times, 
     including training in defensive maneuvers.
       ``(iii) Training to assist the officer in determining when 
     it is appropriate to use the officer's firearm and when it is 
     appropriate to use less than lethal force.
       ``(C) Training in use of firearms.--
       ``(i) Standard.--In order to be deputized as a Federal 
     flight deck officer, a pilot must achieve a level of 
     proficiency with a firearm that is required by the Under 
     Secretary. Such level shall be comparable to the level of 
     proficiency required of Federal air marshals.
       ``(ii) Conduct of training.--The training of a Federal 
     flight deck officer in the use of a firearm may be conducted 
     by the Under Secretary or by a firearms training facility 
     approved by the Under Secretary.
       ``(iii) Requalification.--The Under Secretary shall require 
     a Federal flight deck officer to requalify to carry a firearm 
     under the program. Such requalification shall occur at an 
     interval required by the Under Secretary.
       ``(d) Deputization.--
       ``(1) In general.--The Under Secretary may deputize, as a 
     Federal flight deck officer under this section, a pilot who 
     submits to the Under Secretary a request to be such an 
     officer and whom the Under Secretary determines is qualified 
     to be such an officer.
       ``(2) Qualification.--A pilot is qualified to be a Federal 
     flight deck officer under this section if--
       ``(A) the pilot is employed by an air carrier;
       ``(B) the Under Secretary determines (in the Under 
     Secretary's discretion) that the pilot meets the standards 
     established by the Under Secretary for being such an officer; 
     and
       ``(C) the Under Secretary determines that the pilot has 
     completed the training required by the Under Secretary.
       ``(3) Deputization by other federal agencies.--The Under 
     Secretary may request another Federal agency to deputize, as 
     Federal flight deck officers under this section, those pilots 
     that the Under Secretary determines are qualified to be such 
     officers.
       ``(4) Revocation.--The Under Secretary may, (in the Under 
     Secretary's discretion) revoke the deputization of a pilot as 
     a Federal flight deck officer if the Under Secretary finds 
     that the pilot is no longer qualified to be such an officer.
       ``(e) Compensation.--Pilots participating in the program 
     under this section shall not be eligible for compensation 
     from the Federal Government for services provided as a 
     Federal flight deck officer. The Federal Government and air 
     carriers shall not be obligated to compensate a pilot for 
     participating in the program or for the pilot's training or 
     qualification and requalification to carry firearms under the 
     program.
       ``(f) Authority To Carry Firearms.--
       ``(1) In general.--The Under Secretary shall authorize a 
     Federal flight deck officer to carry a firearm while engaged 
     in providing air transportation or intrastate air 
     transportation. Notwithstanding subsection (c)(1), the 
     officer may purchase a firearm and carry that firearm aboard 
     an aircraft of which the officer is the pilot in accordance 
     with this section if the firearm is of a type that may be 
     used under the program.
       ``(2) Preemption.--Notwithstanding any other provision of 
     Federal or State law, a Federal flight deck officer, whenever 
     necessary to participate in the program, may carry a firearm 
     in any State and from 1 State to another State.
       ``(3) Carrying firearms outside united states.--In 
     consultation with the Secretary of State, the Under Secretary 
     may take such action as may be necessary to ensure that a 
     Federal flight deck officer may carry a firearm in a foreign 
     country whenever necessary to participate in the program.
       ``(g) Authority To Use Force.--Notwithstanding section 
     44903(d), the Under Secretary shall prescribe the standards 
     and circumstances under which a Federal flight deck officer 
     may use, while the program under this section is in effect, 
     force (including lethal force) against an individual in the 
     defense of the flight deck of an aircraft in air 
     transportation or intrastate air transportation.
       ``(h) Limitation on Liability.--
       ``(1) Liability of air carriers.--An air carrier shall not 
     be liable for damages in any action brought in a Federal or 
     State court arising out of a Federal flight deck officer's 
     use of or failure to use a firearm.
       ``(2) Liability of federal flight deck officers.--A Federal 
     flight deck officer shall not be liable for damages in any 
     action brought in a Federal or State court arising out of the 
     acts or omissions of the officer in defending the flight deck 
     of an aircraft against acts of criminal violence or air 
     piracy unless the officer is guilty of gross negligence or 
     willful misconduct.
       ``(3) Liability of federal government.--For purposes of an 
     action against the United States with respect to an act or 
     omission of a Federal flight deck officer in defending the 
     flight deck of an aircraft, the officer shall be treated as 
     an employee of the Federal Government under chapter 171 of 
     title 28, relating to tort claims procedure.
       ``(i) Procedures Following Accidental Discharges.--If an 
     accidental discharge of a firearm under the pilot program 
     results in the injury or death of a passenger or crew member 
     on an aircraft, the Under Secretary--
       ``(1) shall revoke the deputization of the Federal flight 
     deck officer responsible for that firearm if the Under 
     Secretary determines that the discharge was attributable to 
     the negligence of the officer; and
       ``(2) if the Under Secretary determines that a shortcoming 
     in standards, training, or procedures was responsible for the 
     accidental discharge, the Under Secretary may temporarily 
     suspend the program until the shortcoming is corrected.
       ``(j) Limitation on Authority of Air Carriers.--No air 
     carrier shall prohibit or threaten any retaliatory action 
     against a pilot employed by the air carrier from becoming a 
     Federal flight deck officer under this section. No air 
     carrier shall--
       ``(1) prohibit a Federal flight deck officer from piloting 
     an aircraft operated by the air carrier, or
       ``(2) terminate the employment of a Federal flight deck 
     officer, solely on the basis of his or her volunteering for 
     or participating in the program under this section.
       ``(k) Applicability.--
       ``(1) Exemption.--This section shall not apply to air 
     carriers operating under part 135 of title 14, Code of 
     Federal Regulations, and to pilots employed by such carriers 
     to the extent that such carriers and pilots are covered by 
     section 135.119 of such title or any successor to such 
     section.
       ``(2) Pilot defined.--The term `pilot' means an individual 
     who has final authority and responsibility for the operation 
     and safety of the flight or, if more than 1 pilot is required 
     for the operation of the aircraft or by the regulations under 
     which the flight is being conducted, the individual 
     designated as second in command.''.
       (b) Conforming Amendments.--
       (1) Chapter analysis.--The analysis for such chapter is 
     amended by inserting after the item relating to section 44920 
     the following:

``44921.  Federal flight deck officer program.''.

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

     SEC. 1403. CREW TRAINING.

       (a) In General.--Section 44918(e) of title 49, United 
     States Code, is amended--
       (1) by striking ``The Administrator'' and inserting the 
     following:
       ``(1) In general.--The Under Secretary'';
       (2) by adding at the end the following:
       ``(2) Additional requirements.--In updating the training 
     guidance, the Under Secretary, in consultation with the 
     Administrator, shall issue a rule to--
       ``(A) require both classroom and effective hands-on 
     situational training in the following elements of self 
     defense:
       ``(i) recognizing suspicious activities and determining the 
     seriousness of an occurrence;
       ``(ii) deterring a passenger who might present a problem;
       ``(iii) crew communication and coordination;
       ``(iv) the proper commands to give to passengers and 
     attackers;
       ``(v) methods to subdue and restrain an attacker;
       ``(vi) use of available items aboard the aircraft for self-
     defense;
       ``(vii) appropriate and effective responses to defend 
     oneself, including the use of force against an attacker;
       ``(viii) use of protective devices assigned to crew members 
     (to the extent such devices are approved by the Administrator 
     or Under Secretary);
       ``(ix) the psychology of terrorists to cope with their 
     behavior and passenger responses to that behavior;
       ``(x) how to respond to aircraft maneuvers that may be 
     authorized to defend against an act of criminal violence or 
     air piracy;
       ``(B) require training in the proper conduct of a cabin 
     search, including the duty time required to conduct the 
     search;
       ``(C) establish the required number of hours of training 
     and the qualifications for the training instructors;
       ``(D) establish the intervals, number of hours, and 
     elements of recurrent training;
       ``(E) ensure that air carriers provide the initial training 
     required by this paragraph within 24 months of the date of 
     enactment of this subparagraph; and

[[Page S10944]]

       ``(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--

[[Page S10945]]

       (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))''.

[[Page S10946]]

            TITLE XVII--CONFORMING AND TECHNICAL AMENDMENTS

     SEC. 1701. INSPECTOR GENERAL ACT OF 1978.

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

     SEC. 1702. EXECUTIVE SCHEDULE.

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

     SEC. 1703. UNITED STATES SECRET SERVICE.

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

     SEC. 1704. COAST GUARD.

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

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

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

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

       (a) Amendment to Title 40.--Section 581 of title 40, United 
     States Code, is amended--
       (1) by striking subsection (a); and
       (2) in subsection (b)--
       (A) by inserting ``and'' after the semicolon at the end of 
     paragraph (1);
       (B) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and

[[Page S10947]]

       (C) by striking paragraph (3).
       (b) Law Enforcement Authority.--
       (1) In general.--Section 1315 of title 40, United States 
     Code, is amended to read as follows:

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

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

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

     SEC. 1707. TRANSPORTATION SECURITY REGULATIONS.

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

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

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

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

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

     SEC. 1710. RAILROAD SAFETY TO INCLUDE RAILROAD SECURITY.

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

     SEC. 1711. HAZMAT SAFETY TO INCLUDE HAZMAT SECURITY.

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

[[Page S10948]]

       (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.

  SA 4902. Mr. LIEBERMAN (for himself, Mr. McCain, and Mr. Nelson of 
Nebraska) proposed an amendment to amendment SA 4901 proposed by Mr. 
Thompson (for Mr. Gramm (for himself, Mr. Miller, Mr. Thompson, Mr. 
Barkley, and Mr. Voinovich)) to the bill H.R. 5005, to establish the 
Department of Homeland Security, and for other purposes; as follows:

       At the appropriate place add the following:
TITLE --NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES

     SEC. 601. ESTABLISHMENT OF COMMISSION.

       There is established in the legislative branch the National 
     Commission on Terrorist Attacks Upon the United States (in 
     this title referred to as the ``Commission'').

     SEC. 602. PURPOSES.

       The purposes of the Commission are to--
       (1) examine and report upon the facts and causes relating 
     to the terrorist attacks of September 11, 2001, occurring at 
     the World Trade Center in New York, New York, Somerset 
     County, Pennsylvania, and at the Pentagon in Virginia;
       (2) ascertain, evaluate, and report on the evidence 
     developed by all relevant governmental agencies regarding the 
     facts and circumstances surrounding the attacks;
       (3) build upon the investigations of other entities, and 
     avoid unnecessary duplication, by reviewing the findings, 
     conclusions, and recommendations of--
       (A) the Joint Inquiry of the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives regarding the 
     terrorist attacks of September 11, 2001; and
       (B) other executive branch, congressional, or independent 
     commission investigations into the terrorist attacks of 
     September 11, 2001, other terrorist attacks, and terrorism 
     generally;
       (4) make a full and complete accounting of the 
     circumstances surrounding the attacks, and the extent of the 
     United States' preparedness for, and immediate response to, 
     the attacks; and
       (5) investigate and report to the President and Congress on 
     its findings, conclusions, and recommendations for corrective 
     measures that can be taken to prevent acts of terrorism.

     SEC. 603. COMPOSITION OF THE COMMISSION.

       (a) Members.--The Commission shall be composed of 10 
     members, of whom--
       (1) 1 member shall be appointed by the President, who shall 
     serve as a co-chairperson of the Commission;
       (2) 1 member shall be appointed by the leader of the Senate 
     (majority or minority leader, as the case may be) who is of 
     the Democratic party, in consultation with the leader of the 
     House of Representatives (majority or minority leader, as the 
     case may be) who is of the Democratic party, who shall serve 
     as a co-chairperson of the Commission;
       (3) 2 members shall be appointed by the majority leader 
     leader of the Senate;
       (4) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (5) 2 members shall be appointed by the minority leader of 
     the Senate; and
       (6) 2 members shall be appointed by the minority leader of 
     the House of Representatives.
       (b) Qualifications; Initial Meeting.--
       (1) Political party affiliation.--Not more than 5 members 
     of the Commission shall be from the same political party.
       (2) Nongovernmental appointees.--An individual appointed to 
     the Commission may not be an officer or employee of the 
     Federal Government or any State or local government.
       (3) Other qualifications.--It is the sense of Congress that 
     individuals appointed to the Commission should be prominent 
     United States citizens, with national recognition and 
     significant depth of experience in such professions as 
     governmental service, law enforcement, the armed services, 
     legal practice, public administration, intelligence 
     gathering, commerce, including aviation matters, and foreign 
     affairs.
       (4) Initial meeting.--If 90 days after the date of 
     enactment of this Act, 6 or more members of the Commission 
     have been appointed, those members who have been appointed 
     may meet and, if necessary, begin the operations of the 
     Commission.
       (c) Quorum; Vacancies.--After its initial meeting, the 
     Commission shall meet upon the call of the co-chairpersons or 
     a majority of its members. Six members of the Commission 
     shall constitute a quorum. Any vacancy in the Commission 
     shall not affect its powers, but shall be filled in the same 
     manner in which the original appointment was made.

     SEC. 604. FUNCTIONS OF THE COMMISSION.

       (a) In General.--The functions of the Commission are to--
       (1) conduct an investigation that--
       (A) investigates relevant facts and circumstances relating 
     to the terrorist attacks of September 11, 2001, including any 
     relevant legislation, Executive order, regulation, plan, 
     policy, practice, or procedure; and
       (B) may include relevant facts and circumstances relating 
     to--
       (i) intelligence agencies;
       (ii) law enforcement agencies;
       (iii) diplomacy;
       (iv) immigration, nonimmigrant visas, and border control;
       (v) the flow of assets to terrorist organizations;
       (vi) commercial aviation;
       (vii) the role of congressional oversight and resource 
     allocation; and
       (viii) other areas of the public and private sectors 
     determined relevant by the Commission for its inquiry;
       (2) identify, review, and evaluate the lessons learned from 
     the terrorist attacks of September 11, 2001, regarding the 
     structure, coordination, management policies, and procedures 
     of the Federal Government, and, if appropriate, State and 
     local governments and nongovernmental entities, relative to 
     detecting, preventing, and responding to such terrorist 
     attacks; and
       (3) submit to the President and Congress such reports as 
     are required by this title containing such findings, 
     conclusions, and recommendations as the Commission shall 
     determine, including proposing organization, coordination, 
     planning, management arrangements, procedures, rules, and 
     regulations.
       (b) Relationship to Intelligence Committees' Inquiry.--When 
     investigating facts and circumstances relating to the 
     intelligence community, the Commission shall--
       (I) first review the information compiled by, and the 
     findings, conclusions, and recommendations of, the Joint 
     Inquiry of the Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives regarding the terrorist attacks of 
     September 11, 2001 (referred to in this subsection as the 
     ``Joint Inquiry''); and
       (2) after that review pursue any appropriate area of 
     inquiry if the Commission determines that--
       (A) the Joint Inquiry had not investigated that area;
       (B) the Joint Inquiry's investigation of that area had not 
     been complete; or
       (C) new information not reviewed by the Joint Inquiry had 
     become available with respect to that area.

     SEC. 605. POWERS OF THE COMMISSION.

       (a) In General.--

[[Page S10949]]

       (1) Hearings and evidence.--The Commission or, on the 
     authority of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out this title--
       (A) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, 
     administer such oaths; and
       (B) subject to paragraph (2)(A), require, by subpoena or 
     otherwise, the attendance and testimony of such witnesses and 
     the production of such books, records, correspondence, 
     memoranda, papers, and documents, as the Commission or such 
     designated subcommittee or designated member may determine 
     advisable.
       (2) Subpoenas.--
       (A) Issuance.--
       (i) In general.--A subpoena may be issued under this 
     subsection only upon--
       (I) the agreement of the co-chairpersons; or
       (II) the affirmative vote of 5 members of the Commission.
       (ii) Signature.--Subject to clause (i), subpoenas issued 
     under paragraph (I)(B) may be issued under the signature of 
     either co-chairperson or both co-chairpersons of the 
     Commission, the chairperson of any subcommittee created by a 
     majority of the Commission, or any member designated by a 
     majority of the Commission, and may be served by any 
     person designated by the co-chairperson, subcommittee 
     chairperson, or member.
       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under paragraph (1)(B), the United 
     States district court for the judicial district in which the 
     subpoenaed person resides, is served, or may be found, or 
     where the subpoena is returnable, may issue an order 
     requiring such person to appear at any designated place to 
     testify or to produce documentary or other evidence. Any 
     failure to obey the order of the court may be punished by the 
     court as a contempt of that court.
       (ii) Additional enforcement.--In the case of any failure of 
     any witness to comply with any subpeonaor to testify when 
     summoned under authority of this section, the Commission may, 
     by majority vote, certify a statement of fact constituting 
     such failure to the appropriate United States attorney, who 
     may bring the matter before the grand jury for its action, 
     under the same statutory authority and procedures as if the 
     United States attorney had received a certification under 
     sections 102 through 104 of the Revised Statutes of the 
     United States (2 U.S.C. 192 through 194).
       (b) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriation Acts, enter 
     into contracts enable the Commission to discharge its duties 
     under this title.
       (c) Information From Federal Agencies.--
       (1) In general.--The Commission is authorized to secure 
     directly from any executive department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality, of the Government information, suggestions, 
     estimates, and statistics for the purpose of this title. Each 
     department, bureau, agency, board, commission, office, 
     independent establishment or instrumentality shall, to the 
     extent authorized by law, furnish such information, 
     suggestions, estimates, and statistics directly to the 
     Commission, upon request made by either co-chairperson, the 
     chairperson of any subcommittee created by a majority of the 
     Commissioner or any member designated by a majority of the 
     Commission.
       (2) Receipt, handling, storage, and dissemination.--
     Information shall only be received, handled, stored, and 
     disseminated by members of the Commission and its staff 
     consistent with all applicable statutes, regulations, and 
     Executive orders.
       (d) Assistance From Federal Agencies.--
       (1) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for performance of the Commission's functions.
       (2) Other departments and agencies.--In addition to the 
     assistance prescribed in paragraph (1), departments and 
     agencies of the United States are authorized to provide to 
     the Commission such services, funds, facilities, staff, and 
     other support services as they may determine advisable and as 
     may be authorized by law.
       (e) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (f) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.

     SEC. 606. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

       (a) In General.--The Federal Advisory Committee Act (5 
     U.S.C. App.) shall not apply to the Commission.
       (b) Public Meetings and Release of Public Versions of 
     Reports.--The Commission shall--
       (1) hold public hearings and meetings to the greatest 
     extent feasible; and
       (2) release public versions of the reports required under 
     section 610 (a) and (b).
       (c) Public Hearings.--Any public hearings of the Commission 
     shall be conducted in a manner consistent with the protection 
     of information provided to or developed for or by the 
     Commission as required by any applicable statute, regulation, 
     or executive order.

     SEC. 607. STAFF OF THE COMMISSION.

       (a) In General.--
       (1) Appointment and compensation.--The co-chairpersons, in 
     accordance with rules agreed upon by the Commission, may 
     appoint and fix the compensation of a staff director and such 
     other personnel as may be necessary to enable the Commission 
     to carry out its functions, without regard to the provisions 
     of title 5, United States Code, governing appointments in the 
     competitive service, and without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title 
     relating to classification and General Schedule pay rates, 
     except that no rate of pay fixed under this subsection may 
     exceed the equivalent of that payable for a position at level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (2) Personnel as federal employees.--
       (A) In general.--The executive director and any personnel 
     of the Commission 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 commission.--Subparagraph (A) shall not be 
     construed to apply to members of the Commission.
       (b) Detailees.--Any Federal Government employee may be 
     detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the rights, 
     status, and privileges of his or her regular employment 
     without interruption.
       (c) Consultant Services.--The Commission is authorized to 
     procure the services of experts and consultants in accordance 
     with section 3109 of title 5, United States Code, but at 
     rates not to exceed the daily rate paid a person occupying a 
     position at level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.

     SEC. 608. COMPENSATION AND TRAVEL EXPENSES.

       (a) Compensation.--Each member of the Commission may be 
     compensated at not to exceed the daily equivalent of the 
     annual rate of basic pay in effect for a position at level IV 
     of the Executive Schedule under section 5315 of title 5, 
     United States Code, for each day during which that member is 
     engaged in the actual performance of the duties of the 
     Commission.
       (b) Travel Expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Commission, members of the Commission shall be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     in the same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 5703(b) 
     of title 5, United States Code.

     SEC. 609. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND 
                   STAFF.

       The appropriate executive departments and agencies shall 
     cooperate with the Commission in expeditiously providing to 
     the Commission members and staff appropriate security 
     clearances in a manner consistent with existing procedures 
     and requirements, except that no person shall be provided 
     with access to classified information under this section who 
     would not otherwise qualify for such security clearance.

     SEC. 610. REPORTS OF THE COMMISSION; TERMINATION.

       (a) Interim Reports.--The Commission may submit to the 
     President and Congress interim reports containing such 
     findings, conclusions, and recommendations for corrective 
     measures as have been agreed to by a majority of Commission 
     members.
       (b) Final Report.--Not later than 2 years after the date of 
     the first meeting of the Commission, the Commission shall 
     submit to the President and Congress a final report 
     containing such findings, conclusions, and recommendations 
     for corrective measures as have been agreed to by a majority 
     of Commission members.
       (c) Termination.--
       (1) In general.--The Commission, and all the authorities of 
     this title, shall terminate 60 days after the date on which 
     the second report is submitted under subsection (b).
       (2) Administrative activities before termination.--The 
     Commission may use the 60-day period referred to in paragraph 
     (1) for the purpose of concluding its activities, including 
     providing testimony to committees of Congress concerning its 
     reports and disseminating the second report.

     SEC. 611. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     to carry out this title $3,000,000, to remain available until 
     expended.

  SA 4903. Mr. DURBIN (for Mr. Dorgan (for himself, Mr. Ensign, Mr. 
Hollings, and Mr. Allen)) submitted an amendment intended to be 
proposed by Mr. Durbin to the bill H.R. 3833, to facilitate the 
creation of a new, second-level Internet domain within the United 
States country code domain that will be a haven for material that 
promotes positive experiences for children and families using the 
Internet, provides a safe online environment for children, and helps to 
prevent children from being exposed to harmful material on the 
Internet, and for other purposes; as follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Dot Kids Implementation and 
     Efficiency Act of 2002''.

[[Page S10950]]

     SEC. 2. FINDINGS AND PURPOSES

       (a) Findings.--The Congress finds that--
       (1) the World Wide Web presents a stimulating and 
     entertaining opportunity for children to learn, grow, and 
     develop educationally and intellectually;
       (2) Internet technology also makes available an extensive 
     amount of information that is harmful to children, as studies 
     indicate that a significant portion of all material available 
     on the Internet is related to pornography;
       (3) young children, when trying to use the World Wide Web 
     for positive purposes, are often presented--either mistakenly 
     or intentionally--with material that is inappropriate for 
     their age, which can be extremely frustrating for children, 
     parents, and educators;
       (4) exposure of children to material that is inappropriate 
     for them, including pornography, can distort the education 
     and development of the Nation's youth and represents a 
     serious harm to American families that can lead to a host of 
     other problems for children, including appropriate use of 
     chat rooms, physical molestation, harassment, and legal and 
     financial difficulties;
       (5) young boys and girls, older teens, troubled youth, 
     frequent Internet users, chat room participants, online risk 
     takers, and those who communicate online with strangers are 
     at greater risk for receiving unwanted sexual solication on 
     the Internet;
       (6) studies have shown that 19 percent of youth (ages 10 to 
     17) who used the Internet regularly were the targets of 
     unwanted sexual solicitation, but less than 10 percent of the 
     solicitations were reported to the police;
       (7) children who come across illegal content should report 
     it to the congressionally authorized CyberTipline, an online 
     mechanism developed by the National Center for Missing and 
     Exploited Children, for citizens to report sexual crimes 
     against children;
       (8) the CyberTipline has received more than 64,400 reports, 
     including reports of child pornography, online enticement for 
     sexual acts, child molestation (outside the family), and 
     child prostitution;
       (9) although the computer software and hardware industries, 
     and other related industries, have developed innovative ways 
     to help parents and educators restrict material that is 
     harmful to minors through parental control protections and 
     self-regulation, to date such efforts have not provided a 
     national solution to the problem of minors accessing harmful 
     material on the World Wide Web;
       (10) the creation of a ``green-light'' area within the 
     United States country code Internet domain, that will contain 
     only content that is appropriate for children under the age 
     of 13, is analogous to the creation of a children's section 
     within a library and will promote the positive experiences of 
     children and families in the United States; and
       (11) while custody, care, and nurture of the child reside 
     first with the parent, the protection of the physical and 
     psychological well-being of minors by shielding them from 
     material that is harmful to them is a compelling governmental 
     interest.
       (b) Purposes.--The purposes of this Act are--
       (1) to facilitate the creation of a second-level domain 
     within the United States country code Internet domain for the 
     location of material that is suitable for minors and not 
     harmful to minors; and
       (2) to ensure that the National Telecommunications and 
     Information Administration oversees the creation of such a 
     second-level domain and ensures the effective and efficient 
     establishment and operation of the new domain.

     SEC. 3. NTIA AUTHORITY.

       Section 103(b)(3) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C 
     902(b)(3)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) shall assign to the NTIA responsibility for providing 
     for the establishment, and overseeing operation, of a second-
     level Internet domain within the United States country code 
     domain in accordance with section 157.''.

     SEC. 4 CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.

       The National Telecommunications and Information 
     Administration Organization Act (47 U.S.C. 901 et seq.) is 
     amended in part C by adding at the end the following new 
     section:

     ``SEC. 157. CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.

       ``(a) Responsibilities.--The NTIA shall require the 
     registry selected to operate and maintain the United States 
     country code Internet domain to establish, operate, and 
     maintain a second-level domain within the United States 
     country code domain that provides access only to material 
     that is suitable for minors and not harmful to minors (in 
     this section referred to as the `new domain').
       ``(b) Conditions of Contracts.--
       ``(1) Initial resistry.--The NTIA shall not exercise any 
     option periods under any contract between the NTIA and the 
     initial registry to operate and maintain the United States 
     country code Internet domain unless the initial registry 
     agrees, during the 90-day period beginning upon the date of 
     the enactment of the Dot Kids Implementation and Efficiency 
     Act of 2002, to carry out, and to operate the new domain in 
     accordance with, the requirements under subsection (c). 
     Nothing in this subsection shall be construed to prevent the 
     initial registry of the United States country code Internet 
     domain from participating in the NTIA's process for selecting 
     a successor registry or to prevent the NTIA from awarding, to 
     the initial registry, the contract to be successor registry 
     subject to the requirements of paragraph (2).
       ``(2) Successor registries.--The NTIA shall not enter into 
     any contract for operating and maintaining the United States 
     country code Internet domain with any successor registry 
     unless such registry enters into an agreement with the NTIA, 
     during the 90-day period after selection of such registry, 
     that provides for the registry to carry out, and the new 
     domain to operate in accordance with, the requirements under 
     section (c).
       (c) Requirements of New Domain.--The registry and new 
     domain shall be subject to the following requirements:
       ``(1) Written content standards for the new domain, except 
     that the NTIA shall not have any authority to establish such 
     standards.
       ``(2) Written agreements with each registrar for the new 
     domain that require that use of the new domain is in 
     accordance with the standards and requirements of the 
     registry.
       ``(3) Written agreements with registrars, which shall 
     require registrars to enter into written agreements with 
     registrants, to use the new domain in accordance with the 
     standards and requirements of the registry.
       ``(4) Rules and procedures for enforcement and oversight 
     that minimize the possibility that the new domain provides 
     access to content that is not in accordance with the 
     standards and requirements of the registry.
       ``(5) A process for removing from the new domain any 
     content that is not in accordance with the standards and 
     requirements of the registry.
       ``(6) A process to provide registrants to the new domain 
     with an opportunity for a prompt, expeditious, and impartial 
     dispute resolution process regarding any material of the 
     registrant excluded from the new domain.
       ``(7) Continuous and uninterrupted service for the new 
     domain during any transition to a new registry selected to 
     operate and maintain new domain or the United States country 
     code domain.
       ``(8) Procedures and mechanisms to promote the accuracy of 
     contact information submitted by registrants and retained by 
     registrars in the new domain.
       ``(9) Operationality of the new domain not later than one 
     year after the date of the enactment of the Dot Kids 
     Implementation and Efficiency Act of 2002.
       ``(10) Written agreements with registrars, which shall 
     require registrars to enter into written agreements with 
     registrants, to prohibit two-way and multiuser interactive 
     services in the new domain, unless the registrant 
     certifies to the registrar that such service will be 
     offered in compliance with the content standards 
     established pursuant to paragraph (1) and is designed to 
     reduce the risk of exploitation of minors using such two-
     way and multiuser interactive services.
       ``(11) Written agreements with registrars, which shall 
     require registrars to enter into written agreements with 
     registrants, to prohibit hyperlinks in the new domain that 
     take new domain users outside of the new domain.
       ``(12) Any other action that the NTIA considers necessary 
     to establish, operate, or maintain the new domain in 
     accordance with the purposes of this section.
       ``(d) Option Periods for Initial Registry.--The NTIA shall 
     grant the initial registry the option periods available under 
     the contract between the NTIA and the initial registry to 
     operate and maintain the United States country code Internet 
     domain if, and may not grant such option periods unless, the 
     NTIA finds that the initial registry has satisfactorily 
     performed its obligations under this Act and under the 
     contract. Nothing in this section shall preempt or alter the 
     NTIA's authority to terminate such contract for the operation 
     of the United States country code Internet domain for cause 
     or for convenience.
       ``(e) Treatment of Registry and Other Entities.--
       ``(1) In general.--Only to the extent that such entities 
     carry out functions under this section, the following 
     entities are deemed to be interactive computer services for 
     purposes of section 230(c) of the Communications Act of 1934 
     (47 U.S.C. 230(c)):
       ``(A) The registry that operates and maintains the new 
     domain.
       ``(B) Any entity that contracts with such registry to carry 
     out functions to ensure that content accessed through the new 
     domain complies with the limitations applicable to the new 
     domain.
       ``(C) Any registrar for the registry of the new domain that 
     is operating in compliance with its agreement with the 
     registry.
       ``(2) Savings provision.--Nothing in paragraph (1) shall be 
     construed to affect the applicability of any other provision 
     of title II of the Communications Act of 1934 to the entities 
     covered by subparagraph (A), (B), or (C) of paragraph (1).
       ``(f) Education.--The NTIA shall carry out a program to 
     publicize the availability of the new domain and to educate 
     the parents of minors regarding the process for utilizing the 
     new domain in combination and coordination with hardware and 
     software technologies that provide for filtering or blocking. 
     The program under this subsection shall be commenced not 
     later than 30 days after the date that the new domain first 
     becomes operational and accessible by the public.

[[Page S10951]]

       ``(g) Coordination With Federal Government.--The registry 
     selected to operate and maintain the new domain shall--
       ``(1) consult with appropriate agencies of the Federal 
     Government regarding procedures and actions to prevent minors 
     and families who use the new domain from being targeted by 
     adults and other children for predatory behavior, 
     exploitation, or illegal actions; and
       ``(2) based upon the consultations conducted pursuant to 
     paragraph (1), establish such procedures and take such 
     actions as the registry may deem necessary to prevent such 
     targeting.

     The consultations, procedures, and actions required under 
     this subsection shall be commenced not later than 30 
     days after the date that the new domain first becomes 
     operational and accessible by the public.
       ``(h) Compliance Report.--The registry shall prepare, on an 
     annual basis, a report on the registry's monitoring and 
     enforcement procedures for the new domain. The registry shall 
     submit each such report, setting forth the results of the 
     review of its monitoring and enforcement procedures for the 
     new domain, to the Committee on Energy and Commerce of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate.
       ``(i) Suspension of New Domain.--If the NTIA finds, 
     pursuant to its own review or upon a good faith petition by 
     the registry, that the new domain is not serving its intended 
     purpose, the NTIA shall instruct the registry to suspend 
     operation of the new domain until such time as the NTIA 
     determines that the new domain can be operated as intended.
       ``(j) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Harmful to minors.--The term `harmful to minors' 
     means, with respect to material, that--
       ``(A) the average person, applying contemporary community 
     standards, would find, taking the material as a whole and 
     with respect to minors, that it is designed to appeal to, or 
     is designed to pander to, the prurient interest;
       ``(B) the material depicts, describes, or represents, in a 
     manner patently offensive with respect to minors, an actual 
     or simulated sexual act or sexual contact, an actual or 
     simulated normal or perverted sexual act, or a lewd 
     exhibition of the genitals or post-pubescent female breast; 
     and
       ``(C) taken as a whole, the material lacks serious, 
     literary, artistic, political, or scientific value for 
     minors.
       ``(2) Minor.--The term `minor' means any person under 13 
     years of age.
       ``(3) Registry.--The term `registry' means the registry 
     selected to operate and maintain the United States country 
     code Internet domain.
       ``(4) Successor registry.--The term `successor registry' 
     means any entity that enters into a contract with the NTIA to 
     operate and maintain the United States country code Internet 
     domain that covers any period after the termination or 
     expiration of the contract to operate and maintain the United 
     States country code Internet domain, and any option periods 
     under such contract, that was signed on October 26, 2001.
       ``(5) Suitable for minors.--The term `suitable for minors' 
     means, with respect to material, that it--
       ``(A) is not psychologically or intellectually 
     inappropriate for minors; and
       ``(B) serves--
       ``(i) the educational, informational, intellectual, or 
     cognitive needs of minors; or
       ``(ii) the social, emotional, or entertainment needs of 
     minors.''.

  SA 4904. Mr. DURBIN (for Mr. McCain (for himself and Mr. Hollings)) 
proposed an amendment to the bill H.R. 3609, to amend title 49, United 
States Code, to enhance the security and safety of pipelines; as 
follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES 
                   CODE.

       (a) Short Title.--This title may be cited as the ``Pipeline 
     Safety Improvement Act of 2002''.
       (b) Amendment of Title 49, United States Code.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or a repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 49, United States Code.

     SEC. 2. ONE-CALL NOTIFICATION PROGRAMS.

       (a) Minimum Standards.--Section 6103 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1) by inserting ``, including all 
     government operators'' before the semicolon at the end; and
       (B) in paragraph (2) by inserting ``, including all 
     government and contract excavators'' before the semicolon at 
     the end; and
       (2) in subsection (c) by striking ``provide for'' and 
     inserting ``provide for and document''.
       (b) Compliance With Minimum Standards.--Section 6104(d) is 
     amended by striking ``Within 3 years after the date of the 
     enactment of this chapter, the Secretary shall begin to'' and 
     inserting ``The Secretary shall''.
       (c) Implementation of Best Practices Guidelines.--
       (1) In general.--Section 6105 is amended to read as 
     follows:

     ``Sec. 6105. Implementation of best practices guidelines

       ``(a) Adoption of Best Practices.--The Secretary of 
     Transportation shall encourage States, operators of one-call 
     notification programs, excavators (including all government 
     and contract excavators), and underground facility operators 
     to adopt and implement practices identified in the best 
     practices report entitled `Common Ground', as periodically 
     updated.
       ``(b) Technical Assistance.--The Secretary shall provide 
     technical assistance to and participate in programs sponsored 
     by a non-profit organization specifically established for the 
     purpose of reducing construction-related damage to 
     underground facilities.
       ``(c) Grants.--
       ``(1) In general.--The Secretary may make grants to a non-
     profit organization described in subsection (b).
       ``(2) Authorization of appropriations.--In addition to 
     amounts authorized under section 6107, there is authorized to 
     be appropriated for making grants under this subsection 
     $500,000 for each of fiscal years 2003 through 2006. Such 
     sums shall remain available until expended.
       ``(3) General revenue funding.--Any sums appropriated under 
     this subsection shall be derived from general revenues and 
     may not be derived from amounts collected under section 
     60301.''.
       (2) Conforming amendment.--The analysis for chapter 61 is 
     amended by striking the item relating to section 6105 and 
     inserting the following:

``6105. Implementation of best practices guidelines.''.
       (d) Authorization of Appropriations.--
       (1) For grants for states.--Section 6107(a) is amended by 
     striking ``$1,000,000 for fiscal year 2000'' and all that 
     follows before the period at the end of the first sentence 
     and inserting ``$1,000,000 for each of fiscal years 2003 
     through 2006''.
       (2) For administration.--Section 6107(b) is amended by 
     striking ``for fiscal years 1999, 2000, and 2001'' and 
     inserting ``for fiscal years 2003 through 2006''.

     SEC. 3. ONE-CALL NOTIFICATION OF PIPELINE OPERATORS.

       (a) Limitation on Preemption.--Section 60104(c) is amended 
     by adding at the end the following: ``Notwithstanding the 
     preceding sentence, a State authority may enforce a 
     requirement of a one-call notification program of the State 
     if the program meets the requirements for one-call 
     notification programs under this chapter or chapter 61.''.
       (b) Minimum Requirements.--Section 60114(a)(2) is amended 
     by inserting ``, including a government employee or 
     contractor,'' after ``person''.
       (c) Criminal Penalties.--Section 60123(d) is amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``knowingly and willfully'';
       (2) in paragraph (1) by inserting ``knowingly and 
     willfully'' before ``engages'';
       (3) by striking paragraph (2)(B) and inserting the 
     following:
       ``(B) a pipeline facility, and knows or has reason to know 
     of the damage, but does not report the damage promptly to the 
     operator of the pipeline facility and to other appropriate 
     authorities; or''; and
       (4) by adding after paragraph (2) the following:
     ``Penalties under this subsection may be reduced in the case 
     of a violation that is promptly reported by the violator.''.

     SEC. 4. STATE OVERSIGHT ROLE.

       (a) State Agreements With Certification.--Section 60106 is 
     amended--
       (1) in subsection (a) by striking ``General Authority.--''  
     and inserting ``Agreements Without Certification.--'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (3) by inserting after subsection (a) the following:
       ``(b) Agreements With Certification.--
       ``(1) In general.--If the Secretary accepts a certification 
     under section 60105 and makes the determination required 
     under this subsection, the Secretary may make an agreement 
     with a State authority authorizing it to participate in the 
     oversight of interstate pipeline transportation. Each such 
     agreement shall include a plan for the State authority to 
     participate in special investigations involving incidents or 
     new construction and allow the State authority to participate 
     in other activities overseeing interstate pipeline 
     transportation or to assume additional inspection or 
     investigatory duties. Nothing in this section modifies 
     section 60104(c) or authorizes the Secretary to delegate the 
     enforcement of safety standards for interstate pipeline 
     facilities prescribed under this chapter to a State 
     authority.
       ``(2) Determinations required.--The Secretary may not enter 
     into an agreement under this subsection, unless the Secretary 
     determines in writing that--
       ``(A) the agreement allowing participation of the State 
     authority is consistent with the Secretary's program for 
     inspection and consistent with the safety policies and 
     provisions provided under this chapter;
       ``(B) the interstate participation agreement would not 
     adversely affect the oversight responsibilities of intrastate 
     pipeline transportation by the State authority;

[[Page S10952]]

       ``(C) the State is carrying out a program demonstrated to 
     promote preparedness and risk prevention activities that 
     enable communities to live safely with pipelines;
       ``(D) the State meets the minimum standards for State one-
     call notification set forth in chapter 61; and
       ``(E) the actions planned under the agreement would not 
     impede interstate commerce or jeopardize public safety.
       ``(3) Existing agreements.--If requested by the State 
     authority, the Secretary shall authorize a State authority 
     which had an interstate agreement in effect after January 31, 
     1999, to oversee interstate pipeline transportation pursuant 
     to the terms of that agreement until the Secretary determines 
     that the State meets the requirements of paragraph (2) and 
     executes a new agreement, or until December 31, 2003, 
     whichever is sooner. Nothing in this paragraph shall prevent 
     the Secretary, after affording the State notice, hearing, and 
     an opportunity to correct any alleged deficiencies, from 
     terminating an agreement that was in effect before enactment 
     of the Pipeline Safety Improvement Act of 2002 if--
       ``(A) the State authority fails to comply with the terms of 
     the agreement;
       ``(B) implementation of the agreement has resulted in a gap 
     in the oversight responsibilities of intrastate pipeline 
     transportation by the State authority; or
       ``(C) continued participation by the State authority in the 
     oversight of interstate pipeline transportation has had an 
     adverse impact on pipeline safety.''.
       (b) Ending Agreements.--Subsection (e) of section 60106 (as 
     redesignated by subsection (a)(2) of this section) is amended 
     to read as follows:
       ``(e) Ending Agreements.--
       ``(1) Permissive termination.--The Secretary may end an 
     agreement under this section when the Secretary finds that 
     the State authority has not complied with any provision of 
     the agreement.
       ``(2) Mandatory termination of agreement.--The Secretary 
     shall end an agreement for the oversight of interstate 
     pipeline transportation if the Secretary finds that--
       ``(A) implementation of such agreement has resulted in a 
     gap in the oversight responsibilities of intrastate pipeline 
     transportation by the State authority;
       ``(B) the State actions under the agreement have failed to 
     meet the requirements under subsection (b); or
       ``(C) continued participation by the State authority in the 
     oversight of interstate pipeline transportation would not 
     promote pipeline safety.
       ``(3) Procedural requirements.--The Secretary shall give 
     notice and an opportunity for a hearing to a State authority 
     before ending an agreement under this section. The Secretary 
     may provide a State an opportunity to correct any 
     deficiencies before ending an agreement. The finding and 
     decision to end the agreement shall be published in the 
     Federal Register and may not become effective for at least 15 
     days after the date of publication unless the Secretary finds 
     that continuation of an agreement poses an imminent 
     hazard.''.
       (c) Secretary's Response to State Notices of Violations.--
     Subsection (c) of section 60106 (as redesignated by 
     subsection (a)(2) of this section) is amended--
       (1) by striking ``Each agreement'' and inserting the 
     following:
       ``(1) In general.--Each agreement'';
       (2) by adding at the end the following:
       ``(2) Response by secretary.--If a State authority notifies 
     the Secretary under paragraph (1) of a violation or probable 
     violation of an applicable safety standard, the Secretary, 
     not later than 60 days after the date of receipt of the 
     notification, shall--
       ``(A) issue an order under section 60118(b) or take other 
     appropriate enforcement actions to ensure compliance with 
     this chapter; or
       ``(B) provide the State authority with a written 
     explanation as to why the Secretary has determined not to 
     take such actions.''; and
       (3) by aligning the text of paragraph (1) (as designated by 
     this subsection) with paragraph (2) (as added by this 
     subsection).

     SEC. 5. PUBLIC EDUCATION PROGRAMS.

       Section 60116 is amended to read as follows:

     ``Sec. 60116. Public education programs

       ``(a) In General.--Each owner or operator of a gas or 
     hazardous liquid pipeline facility shall carry out a 
     continuing program to educate the public on the use of a one-
     call notification system prior to excavation and other damage 
     prevention activities, the possible hazards associated with 
     unintended releases from the pipeline facility, the physical 
     indications that such a release may have occurred, what steps 
     should be taken for public safety in the event of a pipeline 
     release, and how to report such an event.
       ``(b) Modification of Existing Programs.--Not later than 12 
     months after the date of enactment of the Pipeline Safety 
     Improvement Act of 2002, each owner or operator of a gas or 
     hazardous liquid pipeline facility shall review its existing 
     public education program for effectiveness and modify the 
     program as necessary. The completed program shall include 
     activities to advise affected municipalities, school 
     districts, businesses, and residents of pipeline facility 
     locations. The completed program shall be submitted to the 
     Secretary or, in the case of an intrastate pipeline facility 
     operator, the appropriate State agency, and shall be 
     periodically reviewed by the Secretary or, in the case of an 
     intrastate pipeline facility operator, the appropriate State 
     agency.
       ``(c) Standards.--The Secretary may issue standards 
     prescribing the elements of an effective public education 
     program. The Secretary may also develop material for use in 
     the program.''.

     SEC. 6. PROTECTION OF EMPLOYEES PROVIDING PIPELINE SAFETY 
                   INFORMATION.

       (a) In General.--Chapter 601 is amended by adding at the 
     end the following:

     ``Sec. 60129. Protection of employees providing pipeline 
       safety information

       ``(a) Discrimination Against Employee.--
       ``(1) In general.--No employer may discharge any employee 
     or otherwise discriminate against any employee with respect 
     to his compensation, terms, conditions, or privileges of 
     employment because the employee (or any person acting 
     pursuant to a request of the employee)--
       ``(A) provided, caused to be provided, or is about to 
     provide or cause to be provided, to the employer or the 
     Federal Government information relating to any violation or 
     alleged violation of any order, regulation, or standard under 
     this chapter or any other Federal law relating to pipeline 
     safety;
       ``(B) refused to engage in any practice made unlawful by 
     this chapter or any other Federal law relating to pipeline 
     safety, if the employee has identified the alleged illegality 
     to the employer;
       ``(C) provided, caused to be provided, or is about to 
     provide or cause to be provided, testimony before Congress or 
     at any Federal or State proceeding regarding any provision 
     (or proposed provision) of this chapter or any other Federal 
     law relating to pipeline safety;
       ``(D) commenced, caused to be commenced, or is about to 
     commence or cause to be commenced a proceeding under this 
     chapter or any other Federal law relating to pipeline safety, 
     or a proceeding for the administration or enforcement of any 
     requirement imposed under this chapter or any other Federal 
     law relating to pipeline safety;
       ``(E) provided, caused to be provided, or is about to 
     provide or cause to be provided, testimony in any proceeding 
     described in subparagraph (D); or
       ``(F) assisted or participated or is about to assist or 
     participate in any manner in such a proceeding or in any 
     other manner in such a proceeding or in any other action to 
     carry out the purposes of this chapter or any other Federal 
     law relating to pipeline safety.
       ``(2) Employer defined.--In this section, the term 
     `employer' means--
       ``(A) a person owning or operating a pipeline facility; or
       ``(B) a contractor or subcontractor of such a person.
       ``(b) Department of Labor Complaint Procedure.--
       ``(1) Filing and notification.--A person who believes that 
     he or she has been discharged or otherwise discriminated 
     against by any person in violation of subsection (a) may, not 
     later than 180 days after the date on which such violation 
     occurs, file (or have any person file on his or her behalf) a 
     complaint with the Secretary of Labor alleging such discharge 
     or discrimination. Upon receipt of such a complaint, the 
     Secretary of Labor shall notify, in writing, the person or 
     persons named in the complaint and the Secretary of 
     Transportation of the filing of the complaint, of the 
     allegations contained in the complaint, of the substance of 
     evidence supporting the complaint, and of the opportunities 
     that will be afforded to such person or persons under 
     paragraph (2).
       ``(2) Investigation; preliminary order.--
       ``(A) In general.--Not later than 60 days after the date of 
     receipt of a complaint filed under paragraph (1) and after 
     affording the person or persons named in the complaint an 
     opportunity to submit to the Secretary of Labor a written 
     response to the complaint and an opportunity to meet with a 
     representative of the Secretary of Labor to present 
     statements from witnesses, the Secretary of Labor shall 
     conduct an investigation and determine whether there is 
     reasonable cause to believe that the complaint has merit and 
     notify in writing the complainant and the person or persons 
     alleged to have committed a violation of subsection (a) of 
     the Secretary of Labor's findings. If the Secretary of Labor 
     concludes that there is reasonable cause to believe that a 
     violation of subsection (a) has occurred, the Secretary of 
     Labor shall include with the Secretary of Labor's findings 
     with a preliminary order providing the relief prescribed by 
     paragraph (3)(B). Not later than 60 days after the date of 
     notification of findings under this subparagraph, any person 
     alleged to have committed a violation or the complainant may 
     file objections to the findings or preliminary order, or 
     both, and request a hearing on the record. The filing of such 
     objections shall not operate to stay any reinstatement remedy 
     contained in the preliminary order. Such hearings shall be 
     conducted expeditiously. If a hearing is not requested in 
     such 60-day period, the preliminary order shall be deemed a 
     final order that is not subject to judicial review.
       ``(B) Requirements.--
       ``(i) Required showing by complainant.--The Secretary of 
     Labor shall dismiss a complaint filed under this subsection 
     and shall not conduct an investigation otherwise required 
     under subparagraph (A) unless the complainant makes a prima 
     facie showing that any behavior described in subsection (a) 
     was a contributing factor in the unfavorable personnel action 
     alleged in the complaint.

[[Page S10953]]

       ``(ii) Showing by employer.--Notwithstanding a finding by 
     the Secretary of Labor that the complainant has made the 
     showing required under clause (i), no investigation otherwise 
     required under subparagraph (A) shall be conducted if the 
     employer demonstrates, by clear and convincing evidence, that 
     the employer would have taken the same unfavorable personnel 
     action in the absence of that behavior.
       ``(iii) Criteria for determination by Secretary.--The 
     Secretary of Labor may determine that a violation of 
     subsection (a) has occurred only if the complainant 
     demonstrates that any behavior described in subsection (a) 
     was a contributing factor in the unfavorable personnel action 
     alleged in the complaint.
       ``(iv) Prohibition.--Relief may not be ordered under 
     subparagraph (A) if the employer demonstrates by clear and 
     convincing evidence that the employer would have taken the 
     same unfavorable personnel action in the absence of that 
     behavior.
       ``(3) Final order.--
       ``(A) Deadline for issuance; settlement agreements.--Not 
     later than 90 days after the date of conclusion of a hearing 
     under paragraph (2), the Secretary of Labor shall issue a 
     final order providing the relief prescribed by this paragraph 
     or denying the complaint. At any time before issuance of a 
     final order, a proceeding under this subsection may be 
     terminated on the basis of a settlement agreement entered 
     into by the Secretary of Labor, the complainant, and the 
     person or persons alleged to have committed the violation.
       ``(B) Remedy.--If, in response to a complaint filed under 
     paragraph (1), the Secretary of Labor determines that a 
     violation of subsection (a) has occurred, the Secretary of 
     Labor shall order the person or persons who committed such 
     violation to--
       ``(i) take affirmative action to abate the violation;
       ``(ii) reinstate the complainant to his or her former 
     position together with the compensation (including back pay) 
     and restore the terms, conditions, and privileges associated 
     with his or her employment; and
       ``(iii) provide compensatory damages to the complainant.
     If such an order is issued under this paragraph, the 
     Secretary of Labor, at the request of the complainant, shall 
     assess against the person or persons against whom the order 
     is issued a sum equal to the aggregate amount of all costs 
     and expenses (including attorney's and expert witness fees) 
     reasonably incurred, as determined by the Secretary of Labor, 
     by the complainant for, or in connection with, the bringing 
     the complaint upon which the order was issued.
       ``(C) Frivolous complaints.--If the Secretary of Labor 
     finds that a complaint under paragraph (1) is frivolous or 
     has been brought in bad faith, the Secretary of Labor may 
     award to the prevailing employer a reasonable attorney's fee 
     not exceeding $1,000.
       ``(4) Review.--
       ``(A) Appeal to court of appeals.--Any person adversely 
     affected or aggrieved by an order issued under paragraph (3) 
     may obtain review of the order in the United States Court of 
     Appeals for the circuit in which the violation, with respect 
     to which the order was issued, allegedly occurred or the 
     circuit in which the complainant resided on the date of such 
     violation. The petition for review must be filed not later 
     than 60 days after the date of issuance of the final order of 
     the Secretary of Labor. Review shall conform to chapter 7 of 
     title 5, United States Code. The commencement of proceedings 
     under this subparagraph shall not, unless ordered by the 
     court, operate as a stay of the order.
       ``(B) Limitation on collateral attack.--An order of the 
     Secretary of Labor with respect to which review could have 
     been obtained under subparagraph (A) shall not be subject to 
     judicial review in any criminal or other civil proceeding.
       ``(5) Enforcement of order by secretary of labor.--Whenever 
     any person has failed to comply with an order issued under 
     paragraph (3), the Secretary of Labor may file a civil action 
     in the United States district court for the district in which 
     the violation was found to occur to enforce such order. In 
     actions brought under this paragraph, the district courts 
     shall have jurisdiction to grant all appropriate relief, 
     including, but not to be limited to, injunctive relief and 
     compensatory damages.
       ``(6) Enforcement of order by parties.--
       ``(A) Commencement of action.--A person on whose behalf an 
     order was issued under paragraph (3) may commence a civil 
     action against the person or persons to whom such order was 
     issued to require compliance with such order. The appropriate 
     United States district court shall have jurisdiction, without 
     regard to the amount in controversy or the citizenship of the 
     parties, to enforce such order.
       ``(B) Attorney fees.--The court, in issuing any final order 
     under this paragraph, may award costs of litigation 
     (including reasonable attorney and expert witness fees) to 
     any party whenever the court determines such award of costs 
     is appropriate.
       ``(c) Mandamus.--Any nondiscretionary duty imposed by this 
     section shall be enforceable in a mandamus proceeding brought 
     under section 1361 of title 28, United States Code.
       ``(d) Nonapplicability To Deliberate Violations.--
     Subsection (a) shall not apply with respect to an action of 
     an employee of an employer who, acting without direction from 
     the employer (or such employer's agent), deliberately causes 
     a violation of any requirement relating to pipeline safety 
     under this chapter or any other law of the United States.''.
       (b) Civil Penalty.--Section 60122(a) is amended by adding 
     at the end the following:
       ``(3) A person violating section 60129, or an order issued 
     thereunder, is liable to the Government for a civil penalty 
     of not more than $1,000 for each violation. The penalties 
     provided by paragraph (1) do not apply to a violation of 
     section 60129 or an order issued thereunder.''.
       (c) Conforming Amendment.--The analysis for chapter 601 is 
     amended by adding at the end the following:

``60129. Protection of employees providing pipeline safety 
              information.''.

     SEC. 7. SAFETY ORDERS.

       Section 60117 is amended by adding at the end the 
     following:
       ``(l) Safety Orders.--If the Secretary decides that a 
     pipeline facility has a potential safety-related condition, 
     the Secretary may order the operator of the facility to take 
     necessary corrective action, including physical inspection, 
     testing, repair, replacement, or other appropriate action to 
     remedy the safety-related condition.''.

     SEC. 8. PENALTIES.

       (a) Pipeline Facilities Hazardous to Life and Property.--
     (Environment)
       (1) General authority.--Section 60112(a) is amended to read 
     as follows:
       ``(a) General Authority.--After notice and an opportunity 
     for a hearing, the Secretary of Transportation may decide 
     that a pipeline facility is hazardous if the Secretary 
     decides that--
       ``(1) operation of the facility is or would be hazardous to 
     life, property, or the environment; or
       ``(2) the facility is or would be constructed or operated, 
     or a component of the facility is or would be constructed or 
     operated, with equipment, material, or a technique that the 
     Secretary decides is hazardous to life, property, or the 
     environment.''.
       (2) Corrective action orders.--Section 60112(d) is amended 
     by striking ``is hazardous'' and inserting ``is or would be 
     hazardous''.
       (b) Enforcement.--
       (1) General penalties.--Section 60122(a)(1) is amended--
       (A) by striking ``$25,000'' and inserting ``$100,000''; and
       (B) by striking ``$500,000'' and inserting ``$1,000,000''.
       (2) Penalty considerations.--Section 60122(b) is amended by 
     striking ``under this section'' and all that follows through 
     paragraph (4) and inserting ``under this section--
       ``(1) the Secretary shall consider--
       ``(A) the nature, circumstances, and gravity of the 
     violation, including adverse impact on the environment;
       ``(B) with respect to the violator, the degree of 
     culpability, any history of prior violations, the ability to 
     pay, and any effect on ability to continue doing business; 
     and
       ``(C) good faith in attempting to comply; and
       ``(2) the Secretary may consider--
       ``(A) the economic benefit gained from the violation 
     without any reduction because of subsequent damages; and
       ``(B) other matters that justice requires.''.
       (3) Civil actions.--Section 60120(a) is amended--
       (A) by striking ``(a) Civil Actions.--(1)'' and all that 
     follows through ``(2) At the request'' and inserting the 
     following:
       ``(a) Civil Actions.--
       ``(1) Civil actions to enforce this chapter.--At the 
     request of the Secretary of Transportation, the Attorney 
     General may bring a civil action in an appropriate district 
     court of the United States to enforce this chapter, including 
     section 60112, or a regulation prescribed or order issued 
     under this chapter. The court may award appropriate relief, 
     including a temporary or permanent injunction, punitive 
     damages, and assessment of civil penalties, considering the 
     same factors as prescribed for the Secretary in an 
     administrative case under section 60122.
       ``(2) Civil actions to require compliance with subpoenas or 
     allow for inspections.--At the request''; and
       (B) by aligning the remainder of the text of paragraph (2) 
     with the text of paragraph (1).
       (c) Criminal Penalties for Damaging or Destroying a 
     Facility.--Section 60123(b) is amended--
       (1) by striking ``or'' after ``gas pipeline facility'' and 
     inserting ``, an''; and
       (2) by inserting after ``liquid pipeline facility'' the 
     following: ``, or either an intrastate gas pipeline facility 
     or intrastate hazardous liquid pipeline facility that is used 
     in interstate or foreign commerce or in any activity 
     affecting interstate or foreign commerce''.
       (d) Comptroller General Study.--
       (1) In general.--The Comptroller General shall conduct a 
     study of the actions, policies, and procedures of the 
     Secretary of Transportation for assessing and collecting 
     fines and penalties on operators of hazardous liquid and gas 
     transmission pipelines.
       (2) Analysis.--In conducting the study, the Comptroller 
     General shall examine, at a minimum, the following:
       (A) The frequency with which the Secretary has substituted 
     corrective orders for fines and penalties.
       (B) Changes in the amounts of fines recommended by safety 
     inspectors, assessed by the Secretary, and actually 
     collected.

[[Page S10954]]

       (C) An evaluation of the overall effectiveness of the 
     Secretary's enforcement strategy.
       (D) The extent to which the Secretary has complied with the 
     report of the Government Accounting Office entitled 
     ``Pipeline Safety: The Office of Pipeline Safety is Changing 
     How it Oversees the Pipeline Industry''.
       (3) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee on Commerce, Science, and Transportation of 
     the Senate and the Committees on Transportation and 
     Infrastructure and Energy and Commerce of the House of 
     Representatives a report on the results of the study.

     SEC. 9. PIPELINE SAFETY INFORMATION GRANTS TO COMMUNITIES.

       (a) In General.--Chapter 601 is further amended by adding 
     at the end the following:

     ``Sec. 60130. Pipeline safety information grants to 
       communities

       ``(a) Grant Authority.--
       ``(1) In general.--The Secretary of Transportation may make 
     grants for technical assistance to local communities and 
     groups of individuals (not including for-profit entities) 
     relating to the safety of pipeline facilities in local 
     communities, other than facilities regulated under Public Law 
     93-153 (43 U.S.C. 1651 et seq.). The Secretary shall 
     establish competitive procedures for awarding grants under 
     this section and criteria for selecting grant recipients. The 
     amount of any grant under this section may not exceed $50,000 
     for a single grant recipient. The Secretary shall establish 
     appropriate procedures to ensure the proper use of funds 
     provided under this section.
       ``(2) Technical assistance defined.--In this subsection, 
     the term `technical assistance' means engineering and other 
     scientific analysis of pipeline safety issues, including the 
     promotion of public participation in official proceedings 
     conducted under this chapter.
       ``(b) Prohibited Uses.--Funds provided under this section 
     may not be used for lobbying or in direct support of 
     litigation.
       ``(c) Annual Report.--
       ``(1) In general.--Not later than 90 days after the last 
     day of each fiscal year for which grants are made by the 
     Secretary under this section, the Secretary shall report to 
     the Committees on Commerce, Science, and Transportation and 
     Energy and Natural Resources of the Senate and the Committees 
     on Transportation and Infrastructure and Energy and Commerce 
     of the House of Representatives on grants made under this 
     section in the preceding fiscal year.
       ``(2) Contents.--The report shall include--
       ``(A) a listing of the identity and location of each 
     recipient of a grant under this section in the preceding 
     fiscal year and the amount received by the recipient;
       ``(B) a description of the purpose for which each grant was 
     made; and
       ``(C) a description of how each grant was used by the 
     recipient.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Transportation for 
     carrying out this section $1,000,000 for each of the fiscal 
     years 2003 through 2006. Such amounts shall not be derived 
     from user fees collected under section 60301.''.
       (c) Conforming Amendment.--The analysis for chapter 601 is 
     amended by adding at the end the following:

``60130. Pipeline safety information grants to communities.''.

     SEC. 10. OPERATOR ASSISTANCE IN INVESTIGATIONS.

       (a) In General.--Section 60118 is amended by adding at the 
     end the following:
       ``(e) Operator Assistance in Investigations.--If the 
     Secretary or the National Transportation Safety Board 
     investigate an accident involving a pipeline facility, the 
     operator of the facility shall make available to the 
     Secretary or the Board all records and information that in 
     any way pertain to the accident (including integrity 
     management plans and test results), and shall afford all 
     reasonable assistance in the investigation of the 
     accident.''.
       (b) Corrective Action Orders.--Section 60112(d) is 
     amended--
       (1) by striking ``If the Secretary'' and inserting the 
     following:
       ``(1) In general.--If the Secretary'';
       (2) by adding the end the following:
       ``(2) Actions attributable to an employee.--If, in the case 
     of a corrective action order issued following an accident, 
     the Secretary determines that the actions of an employee 
     carrying out an activity regulated under this chapter, 
     including duties under section 60102(a), may have contributed 
     substantially to the cause of the accident, the Secretary 
     shall direct the operator to relieve the employee from 
     performing those activities, reassign the employee, or place 
     the employee on leave until the earlier of the date on 
     which--
       ``(A) the Secretary, after notice and an opportunity for a 
     hearing, determines that the employee's actions did not 
     contribute substantially to the cause of the accident; or
       ``(B) the Secretary determines the employee has been re-
     qualified or re-trained as provided for in section 60131 and 
     can safely perform those activities.
       ``(3) Effect of collective bargaining agreements.--An 
     action taken by an operator under paragraph (2) shall be in 
     accordance with the terms and conditions of any applicable 
     collective bargaining agreement.''; and
       (3) by aligning the remainder of the text of paragraph (1) 
     (as designated by paragraph (1) of this subsection) with 
     paragraph (2) (as added by paragraph (2) of this subsection).
       (c) Limitation on Statutory Construction.--Section 60118 is 
     amended by adding at the end the following:
       ``(f) Limitation on Statutory Construction.--Nothing in 
     this section may be construed to infringe upon the 
     constitutional rights of an operator or its employees.''.

     SEC. 11. POPULATION ENCROACHMENT AND RIGHTS-OF-WAY.

       (a) In General.--Section 60127 is amended to read as 
     follows:

     ``Sec. 60127. Population encroachment and rights-of-way

       ``(a) Study.--The Secretary of Transportation, in 
     conjunction with the Federal Energy Regulatory Commission and 
     in consultation with appropriate Federal agencies and State 
     and local governments, shall undertake a study of land use 
     practices, zoning ordinances, and preservation of 
     environmental resources with regard to pipeline rights-of-way 
     and their maintenance.
       ``(b) Purpose of Study.--The purpose of the study shall be 
     to gather information on land use practices, zoning 
     ordinances, and preservation of environmental resources--
       ``(1) to determine effective practices to limit 
     encroachment on existing pipeline rights-of-way;
       ``(2) to address and prevent the hazards and risks to the 
     public, pipeline workers, and the environment associated with 
     encroachment on pipeline rights-of-way;
       ``(3) to raise the awareness of the risks and hazards of 
     encroachment on pipeline rights-of-way; and
       ``(4) to address how to best preserve environmental 
     resources in conjunction with maintaining pipeline rights-of-
     way, recognizing pipeline operators' regulatory obligations 
     to maintain rights-of-way and to protect public safety.
       ``(c) Considerations.--In conducting the study, the 
     Secretary shall consider, at a minimum, the following:
       ``(1) The legal authority of Federal agencies and State and 
     local governments in controlling land use and the limitations 
     on such authority.
       ``(2) The current practices of Federal agencies and State 
     and local governments in addressing land use issues involving 
     a pipeline easement.
       ``(3) The most effective way to encourage Federal agencies 
     and State and local governments to monitor and reduce 
     encroachment upon pipeline rights-of-way.
       ``(d) Report.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall publish a 
     report identifying practices, laws, and ordinances that are 
     most successful in addressing issues of encroachment and 
     maintenance on pipeline rights-of-way so as to more 
     effectively protect public safety, pipeline workers, and the 
     environment.
       ``(2) Distribution of report.--The Secretary shall provide 
     a copy of the report to--
       ``(A) Congress and appropriate Federal agencies; and
       ``(B) States for further distribution to appropriate local 
     authorities.
       ``(3) Adoption of practices, laws, and ordinances.--The 
     Secretary shall encourage Federal agencies and State and 
     local governments to adopt and implement appropriate 
     practices, laws, and ordinances, as identified in the report, 
     to address the risks and hazards associated with encroachment 
     upon pipeline rights-of-way and to address the potential 
     methods of preserving environmental resources while 
     maintaining pipeline rights-of-way, consistent with pipeline 
     safety.''.
       (b) Conforming Amendment.--The analysis for chapter 601 is 
     amended by striking the item relating to section 60127 and 
     inserting the following:

``60127. Population encroachment and rights-of-way.''.

     SEC. 12. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--The heads of the participating agencies 
     shall carry out a program of research, development, 
     demonstration, and standardization to ensure the integrity of 
     pipeline facilities.
       (b) Memorandum of Understanding.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the heads of the participating 
     agencies shall enter into a memorandum of understanding 
     detailing their respective responsibilities in the program 
     authorized by subsection (a).
       (2) Areas of expertise.--Under the memorandum of 
     understanding, each of the participating agencies shall have 
     the primary responsibility for ensuring that the elements of 
     the program within its expertise are implemented in 
     accordance with this section. The Department of 
     Transportation's responsibilities shall reflect its lead role 
     in pipeline safety and expertise in pipeline inspection, 
     integrity management, and damage prevention. The Department 
     of Energy's responsibilities shall reflect its expertise in 
     system reliability, low-volume gas leak detection, and 
     surveillance technologies. The National Institute of 
     Standards and Technology's responsibilities shall reflect its 
     expertise in materials research and assisting in the 
     development of consensus technical standards, as that term is 
     used in section 12(d)(4) of Public Law 104-13 (15 U.S.C. 272 
     note).

[[Page S10955]]

       (c) Program Elements.--The program authorized by subsection 
     (a) shall include research, development, demonstration, and 
     standardization activities related to--
       (1) materials inspection;
       (2) stress and fracture analysis, detection of cracks, 
     corrosion, abrasion, and other abnormalities inside pipelines 
     that lead to pipeline failure, and development of new 
     equipment or technologies that are inserted into pipelines to 
     detect anomalies;
       (3) internal inspection and leak detection technologies, 
     including detection of leaks at very low volumes;
       (4) methods of analyzing content of pipeline throughput;
       (5) pipeline security, including improving the real-time 
     surveillance of pipeline rights-of-way, developing tools for 
     evaluating and enhancing pipeline security and 
     infrastructure, reducing natural, technological, and 
     terrorist threats, and protecting first response units and 
     persons near an incident;
       (6) risk assessment methodology, including vulnerability 
     assessment and reduction of third-party damage;
       (7) communication, control, and information systems surety;
       (8) fire safety of pipelines;
       (9) improved excavation, construction, and repair 
     technologies; and
       (10) other appropriate elements.
       (d) Program Plan.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary of Transportation, 
     in coordination with the Secretary of Energy and the Director 
     of the National Institute of Standards and Technology, shall 
     prepare and transmit to Congress a 5-year program plan to 
     guide activities under this section. Such program plan shall 
     be submitted to the Technical Pipeline Safety Standards 
     Committee and the Technical Hazardous Liquid Pipeline Safety 
     Standards Committee for review, and the report to Congress 
     shall include the comments of the committees. The 5-year 
     program plan shall be based on the memorandum of 
     understanding under subsection (b) and take into account 
     related activities of other Federal agencies.
       (2) Consultation.--In preparing the program plan and 
     selecting and prioritizing appropriate project proposals, the 
     Secretary of Transportation shall consult with or seek the 
     advice of appropriate representatives of the natural gas, 
     crude oil, and petroleum product pipeline industries, 
     utilities, manufacturers, institutions of higher learning, 
     Federal agencies, pipeline research institutions, national 
     laboratories, State pipeline safety officials, labor 
     organizations, environmental organizations, pipeline safety 
     advocates, and professional and technical societies.
       (e) Reports to Congress.--Not later than 1 year after the 
     date of enactment of this Act, and annually thereafter, the 
     heads of the participating agencies shall transmit jointly to 
     Congress a report on the status and results to date of the 
     implementation of the program plan prepared under subsection 
     (d).
       (f) Authorization of Appropriations.--
       (1) Department of transportation.--There is authorized to 
     be appropriated to the Secretary of Transportation for 
     carrying out this section $10,000,000 for each of the fiscal 
     years 2003 through 2006.
       (2) Department of energy.--There is authorized to be 
     appropriated to the Secretary of Energy for carrying out this 
     section $10,000,000 for each of the fiscal years 2003 through 
     2006.
       (3) National institute of standards and technology.--There 
     is authorized to be appropriated to the Director of the 
     National Institute of Standards and Technology for carrying 
     out this section $5,000,000 for each of the fiscal years 2003 
     through 2006.
       (4) General revenue funding.--Any sums appropriated under 
     this subsection shall be derived from general revenues and 
     may not be derived from amounts collected under section 60301 
     of title 49, United States Code.
       (g) Pipeline Integrity Program.--Of the amounts available 
     in the Oil Spill Liability Trust Fund established by section 
     9509 of the Internal Revenue Code of 1986 (26 U.S.C. 9509), 
     $3,000,000 shall be transferred to the Secretary of 
     Transportation, as provided in appropriation Acts, to carry 
     out programs for detection, prevention, and mitigation of oil 
     spills for each of the fiscal years 2003 through 2006.
       (h) Participating Agencies Defined.--In this section, the 
     term ``participating agencies'' means the Department of 
     Transportation, the Department of Energy, and the National 
     Institute of Standards and Technology.

     SEC. 3. PIPELINE QUALIFICATION PROGRAMS.

       (a) Verification Program.--
       (1) In general.--Chapter 601 is further amended by adding 
     at the end the following:

     ``Sec. 60131. Verification of pipeline qualification programs

       ``(a) In General.--Subject to the requirements of this 
     section, the Secretary of Transportation shall require the 
     operator of a pipeline facility to develop and adopt a 
     qualification program to ensure that the individuals who 
     perform covered tasks are qualified to conduct such tasks.
       ``(b) Standards and Criteria.--
       ``(1) Development.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall ensure that 
     the Department of Transportation has in place standards and 
     criteria for qualification programs referred to in subsection 
     (a).
       ``(2) Contents.--The standards and criteria shall include 
     the following:
       ``(A) The establishment of methods for evaluating the 
     acceptability of the qualifications of individuals described 
     in subsection (a).
       ``(B) A requirement that pipeline operators develop and 
     implement written plans and procedures to qualify individuals 
     described in subsection (a) to a level found acceptable using 
     the methods established under subparagraph (A) and evaluate 
     the abilities of individuals described in subsection (a) 
     according to such methods.
       ``(C) A requirement that the plans and procedures adopted 
     by a pipeline operator under subparagraph (B) be reviewed and 
     verified under subsection (e).
       ``(c) Development of Qualification Programs by Pipeline 
     Operators.--The Secretary shall require each pipeline 
     operator to develop and adopt, not later than 2 years after 
     the date of enactment of this section, a qualification 
     program that complies with the standards and criteria 
     described in subsection (b).
       ``(d) Elements of Qualification Programs.--A qualification 
     program adopted by an operator under subsection (a) shall 
     include, at a minimum, the following elements:
       ``(1) A method for examining or testing the qualifications 
     of individuals described in subsection (a). The method may 
     include written examination, oral examination, observation 
     during on-the-job performance, on-the-job training, 
     simulations, and other forms of assessment. The method may 
     not be limited to observation of on-the-job performance, 
     except with respect to tasks for which the Secretary has 
     determined that such observation is the best method of 
     examining or testing qualifications. The Secretary shall 
     ensure that the results of any such observations are 
     documented in writing.
       ``(2) A requirement that the operator complete the 
     qualification of all individuals described in subsection (a) 
     not later than 18 months after the date of adoption of the 
     qualification program.
       ``(3) A periodic requalification component that provides 
     for examination or testing of individuals in accordance with 
     paragraph (1).
       ``(4) A program to provide training, as appropriate, to 
     ensure that individuals performing covered tasks have the 
     necessary knowledge and skills to perform the tasks in a 
     manner that ensures the safe operation of pipeline 
     facilities.
       ``(e) Review and Verification of Programs.--
       ``(1) In general.--The Secretary shall review the 
     qualification program of each pipeline operator and verify 
     its compliance with the standards and criteria described in 
     subsection (b) and that it includes the elements described in 
     subsection (d). The Secretary shall record the results of 
     that review for use in the next review of an operator's 
     program.
       ``(2) Deadline for completion.--Reviews and verifications 
     under this subsection shall be completed not later than 3 
     years after the date of the enactment of this section.
       ``(3) Inadequate programs.--If the Secretary decides that a 
     qualification program is inadequate for the safe operation of 
     a pipeline facility, the Secretary shall act as under section 
     60108(a)(2) to require the operator to revise the 
     qualification program.
       ``(4) Program modifications.--If the operator of a pipeline 
     facility significantly modifies a program that has been 
     verified under this subsection, the operator shall notify the 
     Secretary of the modifications. The Secretary shall review 
     and verify such modifications in accordance with paragraph 
     (1).
       ``(5) Waivers and modifications.--In accordance with 
     section 60118(c), the Secretary may waive or modify any 
     requirement of this section if the waiver or modification is 
     not inconsistent with pipeline safety.
       ``(6) Inaction by the secretary.--Notwithstanding any 
     failure of the Secretary to prescribe standards and criteria 
     as described in subsection (b), an operator of a pipeline 
     facility shall develop and adopt a qualification program that 
     complies with the requirement of subsection (b)(2)(B) and 
     includes the elements described in subsection (d) not later 
     than 2 years after the date of enactment of this section.
       ``(f) Intrastate Pipeline Facilities.--In the case of an 
     intrastate pipeline facility operator, the duties and powers 
     of the Secretary under this section with respect to the 
     qualification program of the operator shall be vested in the 
     appropriate State regulatory agency, consistent with this 
     chapter.
       ``(g) Covered Task Defined.--In this section, the term 
     `covered task'--
       ``(1) with respect to a gas pipeline facility, has the 
     meaning such term has under section 192.801 of title 49, Code 
     of Federal Regulations, including any subsequent 
     modifications; and
       ``(2) with respect to a hazardous liquid pipeline facility, 
     has the meaning such term has under section 195.501 of such 
     title, including any subsequent modifications.
       ``(h) Report.--Not later than 4 years after the date of 
     enactment of this section, the Secretary shall transmit to 
     Congress a report on the status and results to date of the 
     personnel qualification regulations issued under this 
     chapter.''.
       (2) Conforming amendment.--The analysis for chapter 601 is 
     amended by adding at end the following:

``60131. Verification of pipeline qualification programs.''.
       (b) Pilot Program for Certification of Certain Pipeline 
     Workers.--

[[Page S10956]]

       (1) In general.--Not later than 36 months after the date of 
     enactment of this Act, the Secretary of Transportation 
     shall--
       (A) develop tests and other requirements for certifying the 
     qualifications of individuals who operate computer-based 
     systems for controlling the operations of pipelines; and
       (B) establish and carry out a pilot program for 3 pipeline 
     facilities under which the individuals operating computer-
     based systems for controlling the operations of pipelines at 
     such facilities are required to be certified under the 
     process established under subparagraph (A).
       (2) Report.--The Secretary shall include in the report 
     required under section 60131(h), as added by subsection (a) 
     of this section, the results of the pilot program. The report 
     shall include--
       (A) a description of the pilot program and implementation 
     of the pilot program at each of the 3 pipeline facilities;
       (B) an evaluation of the pilot program, including the 
     effectiveness of the process for certifying individuals who 
     operate computer-based systems for controlling the operations 
     of pipelines;
       (C) any recommendations of the Secretary for requiring the 
     certification of all individuals who operate computer-based 
     systems for controlling the operations of pipelines; and
       (D) an assessment of the ramifications of requiring the 
     certification of other individuals performing safety-
     sensitive functions for a pipeline facility.
       (3) Computer-based systems defined.--In this subsection, 
     the term ``computer-based systems'' means supervisory control 
     and data acquisition systems.

     SEC. 14. RISK ANALYSIS AND INTEGRITY MANAGEMENT PROGRAMS FOR 
                   GAS PIPELINES.

       (a) In General.--Section 60109 is amended by adding at the 
     end the following:
       ``(c) Risk Analysis and Integrity Management Programs.--
       ``(1) Requirement.--Each operator of a gas pipeline 
     facility shall conduct an analysis of the risks to each 
     facility of the operator located in an area identified 
     pursuant to subsection (a)(1) and defined in chapter 192 of 
     title 49, Code of Federal Regulations, including any 
     subsequent modifications, and shall adopt and implement a 
     written integrity management program for such facility to 
     reduce the risks.
       ``(2) Regulations.--
       ``(A) In general.--Not later than 12 months after the date 
     of enactment of this subsection, the Secretary shall issue 
     regulations prescribing standards to direct an operator's 
     conduct of a risk analysis and adoption and implementation of 
     an integrity management program under this subsection. The 
     regulations shall require an operator to conduct a risk 
     analysis and adopt an integrity management program within a 
     time period prescribed by the Secretary, ending not later 
     than 24 months after such date of enactment. Not later than 
     18 months after such date of enactment, each operator of a 
     gas pipeline facility shall begin a baseline integrity 
     assessment described in paragraph (3).
       ``(B) Authority to issue regulations.--The Secretary may 
     satisfy the requirements of this paragraph through the 
     issuance of regulations under this paragraph or under other 
     authority of law.
       ``(3) Minimum requirements of integrity management 
     programs.--An integrity management program required under 
     paragraph (1) shall include, at a minimum, the following 
     requirements:
       ``(A) A baseline integrity assessment of each of the 
     operator's facilities in areas identified pursuant to 
     subsection (a)(1) and defined in chapter 192 of title 49, 
     Code of Federal Regulations, including any subsequent 
     modifications, by internal inspection device, pressure 
     testing, direct assessment, or an alternative method that the 
     Secretary determines would provide an equal or greater level 
     of safety. The operator shall complete such assessment not 
     later than 10 years after the date of enactment of this 
     subsection. At least 50 percent of such facilities shall be 
     assessed not later than 5 years after such date of enactment. 
     The operator shall prioritize such facilities for assessment 
     based on all risk factors, including any previously 
     discovered defects or anomalies and any history of leaks, 
     repairs, or failures. The operator shall ensure that 
     assessments of facilities with the highest risks are given 
     priority for completion and that such assessments will be 
     completed not later than 5 years after such date of 
     enactment.
       ``(B) Subject to paragraph (5), periodic reassessment of 
     the facility, at a minimum of once every 7 years, using 
     methods described in subparagraph (A).
       ``(C) Clearly defined criteria for evaluating the results 
     of assessments conducted under subparagraphs (A) and (B) and 
     for taking actions based on such results.
       ``(D) A method for conducting an analysis on a continuing 
     basis that integrates all available information about the 
     integrity of the facility and the consequences of releases 
     from the facility.
       ``(E) A description of actions to be taken by the operator 
     to promptly address any integrity issue raised by an 
     evaluation conducted under subparagraph (C) or the analysis 
     conducted under subparagraph (D).
       ``(F) A description of measures to prevent and mitigate the 
     consequences of releases from the facility.
       ``(G) A method for monitoring cathodic protection systems 
     throughout the pipeline system of the operator to the extent 
     not addressed by other regulations.
       ``(H) If the Secretary raises a safety concern relating to 
     the facility, a description of the actions to be taken by the 
     operator to address the safety concern, including issues 
     raised with the Secretary by States and local authorities 
     under an agreement entered into under section 60106.
       ``(4) Treatment of baseline integrity assessments.--In the 
     case of a baseline integrity assessment conducted by an 
     operator in the period beginning on the date of enactment of 
     this subsection and ending on the date of issuance of 
     regulations under this subsection, the Secretary shall accept 
     the assessment as complete, and shall not require the 
     operator to repeat any portion of the assessment, if the 
     Secretary determines that the assessment was conducted in 
     accordance with the requirements of this subsection.
       ``(5) Waivers and modifications.--In accordance with 
     section 60118(c), the Secretary may waive or modify any 
     requirement for reassessment of a facility under paragraph 
     (3)(B) for reasons that may include the need to maintain 
     local product supply or the lack of internal inspection 
     devices if the Secretary determines that such waiver is not 
     inconsistent with pipeline safety.
       ``(6) Standards.--The standards prescribed by the Secretary 
     under paragraph (2) shall address each of the following 
     factors:
       ``(A) The minimum requirements described in paragraph (3).
       ``(B) The type or frequency of inspections or testing of 
     pipeline facilities, in addition to the minimum requirements 
     of paragraph (3)(B).
       ``(C) The manner in which the inspections or testing are 
     conducted.
       ``(D) The criteria used in analyzing results of the 
     inspections or testing.
       ``(E) The types of information sources that must be 
     integrated in assessing the integrity of a pipeline facility 
     as well as the manner of integration.
       ``(F) The nature and timing of actions selected to address 
     the integrity of a pipeline facility.
       ``(G) Such other factors as the Secretary determines 
     appropriate to ensure that the integrity of a pipeline 
     facility is addressed and that appropriate mitigative 
     measures are adopted to protect areas identified under 
     subsection (a)(1).
     In prescribing those standards, the Secretary shall ensure 
     that all inspections required are conducted in a manner that 
     minimizes environmental and safety risks, and shall take into 
     account the applicable level of protection established by 
     national consensus standards organizations.
       ``(7) Additional optional standards.--The Secretary may 
     also prescribe standards requiring an operator of a pipeline 
     facility to include in an integrity management program under 
     this subsection--
       ``(A) changes to valves or the establishment or 
     modification of systems that monitor pressure and detect 
     leaks based on the operator's risk analysis; and
       ``(B) the use of emergency flow restricting devices.
       ``(8) Lack of regulations.--In the absence of regulations 
     addressing the elements of an integrity management program 
     described in this subsection, the operator of a pipeline 
     facility shall conduct a risk analysis and adopt and 
     implement an integrity management program described in this 
     subsection not later than 24 months after the date of 
     enactment of this subsection and shall complete the baseline 
     integrity assessment described in this subsection not later 
     than 10 years after such date of enactment. At least 50 
     percent of such facilities shall be assessed not later than 5 
     years after such date of enactment. The operator shall 
     prioritize such facilities for assessment based on all risk 
     factors, including any previously discovered defects or 
     anomalies and any history of leaks, repairs, or failures. The 
     operator shall ensure that assessments of facilities with the 
     highest risks are given priority for completion and that such 
     assessments will be completed not later than 5 years after 
     such date of enactment.
       ``(9) Review of integrity management programs.--
       ``(A) Review of programs.--
       ``(i) In general.--The Secretary shall review a risk 
     analysis and integrity management program under paragraph (1) 
     and record the results of that review for use in the next 
     review of an operator's program.
       ``(ii) Context of review.--The Secretary may conduct a 
     review under clause (i) as an element of the Secretary's 
     inspection of an operator.
       ``(iii) Inadequate programs.--If the Secretary determines 
     that a risk analysis or integrity management program does not 
     comply with the requirements of this subsection or 
     regulations issued as described in paragraph (2), or is 
     inadequate for the safe operation of a pipeline facility, the 
     Secretary shall act under section 60108(a)(2) to require the 
     operator to revise the risk analysis or integrity management 
     program.
       ``(B) Amendments to programs.--In order to facilitate 
     reviews under this paragraph, an operator of a pipeline 
     facility shall notify the Secretary of any amendment made to 
     the operator's integrity management program not later than 30 
     days after the date of adoption of the amendment. The 
     Secretary shall review any such amendment in accordance with 
     this paragraph.
       ``(C) Transmittal of programs to state authorities.--The 
     Secretary shall provide a copy of each risk analysis and 
     integrity

[[Page S10957]]

     management program reviewed by the Secretary under this 
     paragraph to any appropriate State authority with which the 
     Secretary has entered into an agreement under section 60106.
       ``(10) State review of integrity management plans.--A State 
     authority that enters into an agreement pursuant to section 
     60106, permitting the State authority to review the risk 
     analysis and integrity management program pursuant to 
     paragraph (9), may provide the Secretary with a written 
     assessment of the risk analysis and integrity management 
     program, make recommendations, as appropriate, to address 
     safety concerns not adequately addressed by the operator's 
     risk analysis or integrity management program, and submit 
     documentation explaining the State-proposed revisions. The 
     Secretary shall consider carefully the State's proposals and 
     work in consultation with the States and operators to address 
     safety concerns.
       ``(11) Application of standards.--Section 60104(b) shall 
     not apply to this section.''.
       (b) Integrity Management Regulations.--Section 60109 is 
     further amended by adding at the end the following:
       ``(d) Evaluation of Integrity Management Regulations.--Not 
     later than 4 years after the date of enactment of this 
     subsection, the Comptroller General shall complete an 
     assessment and evaluation of the effects on public safety and 
     the environment of the requirements for the implementation of 
     integrity management programs contained in the standards 
     prescribed as described in subsection (c)(2).''.
       (c) Conforming Amendment.--Section 60118(a) is amended--
       (1) by striking ``and'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) conduct a risk analysis, and adopt and implement an 
     integrity management program, for pipeline facilities as 
     required under section 60109(c).''.
       (d) Study of Reassessment Intervals.--
       (1) Study.--The Comptroller General shall conduct a study 
     to evaluate the 7-year reassessment interval required by 
     section 60109(c)(3)(B) of title 49, United States Code, as 
     added by subsection (a) of this section.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the Comptroller General shall transmit 
     to Congress a report on the results of the study conducted 
     under paragraph (1).

     SEC. 15. NATIONAL PIPELINE MAPPING SYSTEM.

       (a) In General.--Chapter 601 is further amended by adding 
     at the end the following:

     ``Sec. 60132. National pipeline mapping system

       ``(a) Information To Be Provided.--Not later than 6 months 
     after the date of enactment of this section, the operator of 
     a pipeline facility (except distribution lines and gathering 
     lines) shall provide to the Secretary of Transportation the 
     following information with respect to the facility:
       ``(1) Geospatial data appropriate for use in the National 
     Pipeline Mapping System or data in a format that can be 
     readily converted to geospatial data.
       ``(2) The name and address of the person with primary 
     operational control to be identified as its operator for 
     purposes of this chapter.
       ``(3) A means for a member of the public to contact the 
     operator for additional information about the pipeline 
     facilities it operates.
       ``(b) Updates.--A person providing information under 
     subsection (a) shall provide to the Secretary updates of the 
     information to reflect changes in the pipeline facility owned 
     or operated by the person and as otherwise required by the 
     Secretary.
       ``(c) Technical Assistance To Improve Local Response 
     Capabilities.--The Secretary may provide technical assistance 
     to State and local officials to improve local response 
     capabilities for pipeline emergencies by adapting information 
     available through the National Pipeline Mapping System to 
     software used by emergency response personnel responding to 
     pipeline emergencies.''.
       (b) Conforming Amendment.--The analysis for chapter 601 is 
     amended by adding at the end the following:

``60132. National pipeline mapping system.''.

     SEC. 16. COORDINATION OF ENVIRONMENTAL REVIEWS.

       (a) In General.--Chapter 601 is further amended by adding 
     at the end the following:

     ``Sec. 60133. Coordination of environmental reviews

       ``(a) Interagency Committee.--
       ``(1) Establishment and purpose.--Not later than 30 days 
     after the date of enactment of this section, the President 
     shall establish an Interagency Committee to develop and 
     ensure implementation of a coordinated environmental review 
     and permitting process in order to enable pipeline operators 
     to commence and complete all activities necessary to carry 
     out pipeline repairs within any time periods specified by 
     rule by the Secretary.
       ``(2) Membership.--The Chairman of the Council on 
     Environmental Quality (or a designee of the Chairman) shall 
     chair the Interagency Committee, which shall consist of 
     representatives of Federal agencies with responsibilities 
     relating to pipeline repair projects, including each of the 
     following persons (or a designee thereof):
       ``(A) The Secretary of Transportation.
       ``(B) The Administrator of the Environmental Protection 
     Agency.
       ``(C) The Director of the United States Fish and Wildlife 
     Service.
       ``(D) The Assistant Administrator for Fisheries of the 
     National Oceanic and Atmospheric Administration.
       ``(E) The Director of the Bureau of Land Management.
       ``(F) The Director of the Minerals Management Service.
       ``(G) The Assistant Secretary of the Army for Civil Works.
       ``(H) The Chairman of the Federal Energy Regulatory 
     Commission.
       ``(3) Evaluation.--The Interagency Committee shall evaluate 
     Federal permitting requirements to which access, excavation, 
     and restoration activities in connection with pipeline 
     repairs described in paragraph (1) may be subject. As part of 
     its evaluation, the Interagency Committee shall examine the 
     access, excavation, and restoration practices of the pipeline 
     industry in connection with such pipeline repairs, and may 
     develop a compendium of best practices used by the industry 
     to access, excavate, and restore the site of a pipeline 
     repair.
       ``(4) Memorandum of understanding.--Based upon the 
     evaluation required under paragraph (3) and not later than 1 
     year after the date of enactment of this section, the members 
     of the Interagency Committee shall enter into a memorandum of 
     understanding to provide for a coordinated and expedited 
     pipeline repair permit review process to carry out the 
     purpose set forth in paragraph (1). The Interagency Committee 
     shall include provisions in the memorandum of understanding 
     identifying those repairs or categories of repairs described 
     in paragraph (1) for which the best practices identified 
     under paragraph (3), when properly employed by a pipeline 
     operator, would result in no more than minimal adverse 
     effects on the environment and for which discretionary 
     administrative reviews may therefore be minimized or 
     eliminated. With respect to pipeline repairs described in 
     paragraph (1) to which the preceding sentence would not be 
     applicable, the Interagency Committee shall include 
     provisions to enable pipeline operators to commence and 
     complete all activities necessary to carry out pipeline 
     repairs within any time periods specified by rule by the 
     Secretary. The Interagency Committee shall include in the 
     memorandum of understanding criteria under which permits 
     required for such pipeline repair activities should be 
     prioritized over other less urgent agency permit application 
     reviews. The Interagency Committee shall not enter into a 
     memorandum of understanding under this paragraph except by 
     unanimous agreement of the members of the Interagency 
     Committee.
       ``(5) State and local consultation.--In carrying out this 
     subsection, the Interagency Committee shall consult with 
     appropriate State and local environmental, pipeline safety, 
     and emergency response officials, and such other officials as 
     the Interagency Committee considers appropriate.
       ``(b) Implementation.--Not later than 180 days after the 
     completion of the memorandum of understanding required under 
     subsection (a)(4), each agency represented on the Interagency 
     Committee shall revise its regulations as necessary to 
     implement the provisions of the memorandum of understanding.
       ``(c) Savings Provisions; No Preemption.--Nothing in this 
     section shall be construed--
       ``(1) to require a pipeline operator to obtain a Federal 
     permit, if no Federal permit would otherwise have been 
     required under Federal law; or
       ``(2) to preempt applicable Federal, State, or local 
     environmental law.
       ``(d) Interim Operational Alternatives.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and subject to the limitations in 
     paragraph (2), the Secretary of Transportation shall revise 
     the regulations of the Department, to the extent necessary, 
     to permit a pipeline operator subject to time periods for 
     repair specified by rule by the Secretary to implement 
     alternative mitigation measures until all applicable permits 
     have been granted.
       ``(2) Limitations.--The regulations issued by the Secretary 
     pursuant to this subsection shall not allow an operator to 
     implement alternative mitigation measures pursuant to 
     paragraph (1) unless--
       ``(A) allowing the operator to implement such measures 
     would be consistent with the protection of human health, 
     public safety, and the environment;
       ``(B) the operator, with respect to a particular repair 
     project, has applied for and is pursuing diligently and in 
     good faith all required Federal, State, and local permits to 
     carry out the project; and
       ``(C) the proposed alternative mitigation measures are not 
     incompatible with pipeline safety.
       ``(e) Ombudsman.--The Secretary shall designate an 
     ombudsman to assist in expediting pipeline repairs and 
     resolving disagreements between Federal, State, and local 
     permitting agencies and the pipeline operator during agency 
     review of any pipeline repair activity, consistent with 
     protection of human health, public safety, and the 
     environment.
       ``(f) State and Local Permitting Processes.--The Secretary 
     shall encourage States and local governments to consolidate 
     their respective permitting processes for pipeline repair 
     projects subject to any time periods for repair specified by 
     rule by the Secretary. The Secretary may request other

[[Page S10958]]

     relevant Federal agencies to provide technical assistance to 
     States and local governments for the purpose of encouraging 
     such consolidation.''.
       (b) Conforming Amendment.--The analysis for chapter 601 is 
     amended by adding at the end the following:

``60133. Coordination of environmental reviews.''.

     SEC. 17. NATIONWIDE TOLL-FREE NUMBER SYSTEM.

       Within 1 year after the date of the enactment of this Act, 
     the Secretary of Transportation shall, in conjunction with 
     the Federal Communications Commission, facility operators, 
     excavators, and one-call notification system operators, 
     provide for the establishment of a 3-digit nationwide toll-
     free telephone number system to be used by State one-call 
     notification systems.

     SEC. 18. IMPLEMENTATION OF INSPECTOR GENERAL RECOMMENDATIONS.

       (a) In General.--Except as otherwise required by this 
     title, the Secretary of Transportation shall implement the 
     safety improvement recommendations provided for in the 
     Department of Transportation Inspector General's Report (RT-
     2000-069).
       (b) Reports by the Secretary.--Not later than 90 days after 
     the date of enactment of this Act, and every 90 days 
     thereafter until each of the recommendations referred to in 
     subsection (a) has been implemented, the Secretary shall 
     transmit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committees on 
     Transportation and Infrastructure and Energy and Commerce of 
     the House of Representatives a report on the specific actions 
     taken to implement such recommendations.
       (c) Reports by the Inspector General.--The Inspector 
     General shall periodically transmit to the committees 
     referred to in subsection (b) a report assessing the 
     Secretary's progress in implementing the recommendations 
     referred to in subsection (a) and identifying options for the 
     Secretary to consider in accelerating recommendation 
     implementation.

     SEC. 19. NTSB SAFETY RECOMMENDATIONS.

       (a) In General.--The Secretary of Transportation, the 
     Administrator of Research and Special Program Administration, 
     and the Director of the Office of Pipeline Safety shall fully 
     comply with section 1135 of title 49, United States Code, to 
     ensure timely responsiveness to National Transportation 
     Safety Board recommendations about pipeline safety.
       (b) Public Availability.--The Secretary, Administrator, or 
     Director, respectively, shall make a copy of each 
     recommendation on pipeline safety and response, as described 
     in subsections (a) and (b) of section 1135, title 49, United 
     States Code.
       (c) Reports to Congress.--The Secretary, Administrator, or 
     Director, respectively, shall submit to Congress by January 1 
     of each year a report containing each recommendation on 
     pipeline safety made by the Board during the prior year and a 
     copy of the response to each such recommendation.

     SEC. 20. MISCELLANEOUS AMENDMENTS.

       (a) General Authority and Purpose.--
       (1) In general.--Section 60102(a) is amended--
       (A) by redesignating paragraph (2) as paragraph (3);
       (B) by striking ``(a)(1)'' and all that follows through 
     ``The Secretary of Transportation'' and inserting the 
     following:
       ``(a) Purpose and Minimum Safety Standards.--
       ``(1) Purpose.--The purpose of this chapter is to provide 
     adequate protection against risks to life and property posed 
     by pipeline transportation and pipeline facilities by 
     improving the regulatory and enforcement authority of the 
     Secretary of Transportation.
       ``(2) Minimum safety standards.--The Secretary'';
       (C) by moving the remainder of the text of paragraph (2) 
     (as so redesignated), including subparagraphs (A) and (B) but 
     excluding subparagraph (C), 2 ems to the right; and
       (D) in paragraph (3) (as so redesignated) by inserting 
     ``Qualifications of pipeline operators.--'' before ``The 
     qualifications''.
       (2) Conforming amendments.--Chapter 601 is amended--
       (A) by striking the heading for section 60102 and inserting 
     the following:

     ``Sec. 60102. Purpose and general authority''; and

       (B) in the analysis for such chapter by striking the item 
     relating to section 60102 and inserting the following:

``60102. Purpose and general authority.''.
       (b) Conflicts of Interest.--Section 60115(b)(4) is amended 
     by adding at the end the following:
       ``(D) None of the individuals selected for a committee 
     under paragraph (3)(C) may have a significant financial 
     interest in the pipeline, petroleum, or gas industry.''.

     SEC. 21. TECHNICAL AMENDMENTS.

       Chapter 601 is amended--
       (1) in section 60110(b) by striking ``circumstances'' and 
     all that follows through ``operator'' and inserting the 
     following: ``circumstances, if any, under which an 
     operator'';
       (2) in section 60114 by redesignating subsection (d) as 
     subsection (c);
       (3) in section 60122(a)(1) by striking ``section 60114(c)'' 
     and inserting ``section 60114(b)''; and
       (4) in section 60123(a) by striking ``60114(c)'' and 
     inserting ``60114(b)''.

     SEC. 22. AUTHORIZATION OF APPROPRIATIONS.

       (a) Gas and Hazardous Liquid.--Section 60125(a) is amended 
     to read as follows:
       ``(a) Gas and Hazardous Liquid.--To carry out this chapter 
     (except for section 60107) related to gas and hazardous 
     liquid, the following amounts are authorized to be 
     appropriated to the Department of Transportation:
       ``(1) $45,800,000 for fiscal year 2003, of which 
     $31,900,000 is to be derived from user fees for fiscal year 
     2003 collected under section 60301 of this title.
       ``(2) $46,800,000 for fiscal year 2004, of which 
     $35,700,000 is to be derived from user fees for fiscal year 
     2004 collected under section 60301 of this title.
       ``(3) $47,100,000 for fiscal year 2005, of which 
     $41,100,000 is to be derived from user fees for fiscal year 
     2005 collected under section 60301 of this title.
       ``(4) $50,000,000 for fiscal year 2006, of which 
     $45,000,000 is to be derived from user fees for fiscal year 
     2006 collected under section 60301 of this title.''.
       (b) State Grants.--Section 60125 is amended--
       (1) by striking subsections (b), (d), and (f) and 
     redesignating subsection (c) as subsection (b); and
       (2) in subsection (b)(1) (as so redesignated) by striking 
     subparagraphs (A) through (H) and inserting the following:
       ``(A) $19,800,000 for fiscal year 2003, of which 
     $14,800,000 is to be derived from user fees for fiscal year 
     2003 collected under section 60301 of this title.
       ``(B) $21,700,000 for fiscal year 2004, of which 
     $16,700,000 is to be derived from user fees for fiscal year 
     2004 collected under section 60301 of this title.
       ``(C) $24,600,000 for fiscal year 2005, of which 
     $19,600,000 is to be derived from user fees for fiscal year 
     2005 collected under section 60301 of this title.
       ``(D) $26,500,000 for fiscal year 2006, of which 
     $21,500,000 is to be derived from user fees for fiscal year 
     2006 collected under section 60301 of this title.''.
       (c) Oil Spills; Emergency Response Grants.--Section 60125 
     is amended by inserting after subsection (b) (as redesignated 
     by subsection (b)(1) of this section) the following:
       ``(c) Oil Spill Liability Trust Fund.--Of the amounts 
     available in the Oil Spill Liability Trust Fund, $8,000,000 
     shall be transferred to the Secretary of Transportation, as 
     provided in appropriation Acts, to carry out programs 
     authorized in this chapter for each of fiscal years 2003 
     through 2006.
       ``(d) Emergency Response Grants.--
       ``(1) In general.--The Secretary may establish a program 
     for making grants to State, county, and local governments in 
     high consequence areas, as defined by the Secretary, for 
     emergency response management, training, and technical 
     assistance.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated $6,000,000 for each of fiscal years 2003 
     through 2006 to carry out this subsection.''.
       (d) Conforming Amendment.--Section 60125(e) is amended by 
     striking ``or (b) of this section''.

     SEC. 23. INSPECTIONS BY DIRECT ASSESSMENT.

       Section 60102, as amended by this Act, is further amended 
     by adding at the end the following:
       ``(m) Inspections by Direct Assessment.--Not later than 1 
     year after the date of the enactment of this subsection, the 
     Secretary shall issue regulations prescribing standards for 
     inspection of a pipeline facility by direct assessment.''.

     SEC. 24. STATE PIPELINE SAFETY ADVISORY COMMITTEES.

       Within 90 days after receiving recommendations for 
     improvements to pipeline safety from an advisory committee 
     appointed by the Governor of any State, the Secretary of 
     Transportation shall respond in writing to the committee 
     setting forth what action, if any, the Secretary will take on 
     those recommendations and the Secretary's reasons for acting 
     or not acting upon any of the recommendations.

     SEC. 25. PIPELINE BRIDGE RISK STUDY.

       (a) In General.--The Secretary of Transportation shall 
     conduct a study to determine whether cable-suspension 
     pipeline bridges pose structural or other risks warranting 
     particularized attention in connection with pipeline 
     operators risk assessment programs and whether particularized 
     inspection standards need to be developed by the Department 
     of Transportation to recognize the peculiar risks posed by 
     such bridges.
       (b) Public Participation and Comments.--In conducting the 
     study, the Secretary shall provide, to the maximum extent 
     practicable, for public participation and comment and shall 
     solicit views and comments from the public and interested 
     persons, including participants in the pipeline industry with 
     knowledge and experience in inspection of pipeline 
     facilities.
       (c) Completion and Report.--Within 2 years after the date 
     of enactment of this Act, the Secretary shall complete the 
     study and transmit to Congress a report detailing the results 
     of the study.
       (d) Funding.--The Secretary may carry out this section 
     using only amounts that are specifically appropriated to 
     carry out this section.

     SEC. 26. STUDY AND REPORT ON NATURAL GAS PIPELINE AND STORAGE 
                   FACILITIES IN NEW ENGLAND.

       (a) Study.--The Federal Energy Regulatory Commission, in 
     consultation with the Department of Energy, shall conduct a 
     study

[[Page S10959]]

     on the natural gas pipeline transmission network in New 
     England and natural gas storage facilities associated with 
     that network.
       (b) Consideration.--In carrying out the study, the 
     Commission shall consider the ability of natural gas pipeline 
     and storage facilities in New England to meet current and 
     projected demand by gas-fired power generation plants and 
     other consumers.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission shall prepare and submit to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Energy and Commerce of the House of Representatives a 
     report containing the results of the study conducted under 
     subsection (a), including recommendations for addressing 
     potential natural gas transmission and storage capacity 
     problems in New England.

                                 ______
                                 
  SA 4905. Mr. DURBIN (for Mr. Thompson) proposed an amendment to the 
bill S. 3067, to amend title 44, United States Code, to extend certain 
government information security reform for one year, and for other 
purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. ONE-YEAR EXTENSION OF GOVERNMENT INFORMATION 
                   SECURITY REFORM.

       Section 3536 of title 44, United States Code, is amended by 
     striking ``after the date'' and all that follows and 
     inserting ``after November 30, 2003.''.

     SEC. 2. DESIGNATION OF LAW AS GOVERNMENT INFORMATION SECURITY 
                   REFORM ACT.

       Subtitle G of title X of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-266) is 
     amended by inserting after the heading for the subtitle the 
     following new section:

     ``SEC. 1060. SHORT TITLE.

       ``This subtitle may be cited as the `Government Information 
     Security Reform Act'.''.
       Amend the title so as to read: ``A bill to amend title 44, 
     United States Code, to extend certain Government information 
     security reform for one year, and for other purposes.''.

                          ____________________