[Congressional Record Volume 148, Number 147 (Thursday, November 14, 2002)]
[House]
[Pages H8925-H9007]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  0240
               DISPOSING OF VARIOUS LEGISLATIVE MEASURES

  Mr. ARMEY. Mr. Speaker, in accordance with the Boyle-Turton 
precedent, I ask unanimous consent that the House.
  (1) Be considered to have discharged from the committee and passed 
H.R. 5334, H.R. 5436, H.R. 5738, S. 1010, H.R. 5716, H.R. 5499, S. 
2239, H.R. 5280, H.R. 5586, H.R. 5609, H.R. 628, H.R. 629, H.R. 3775, 
H.R. 5495, H.R. 5604, H.R. 5611, H.R. 5728, and H.R. 5436;
  (2) Be considered to have taken from the Speaker's table and passed 
S. 2712, S. 3044, and S. 3156;
  (3) Be considered to have discharged from committee and agreed to H. 
Res. 604, H. Con. Res. 499, H. Res. 582, H. Res. 599, and H. Res. 612;
  (4) Be considered to have discharged from committee, amended, and 
passed S. 1843, in the form placed at the desk;
  (5) Be considered to have passed H.R. 5504 as amended by the 
committee amendment;
  (6) Be considered to have passed H.R. 3429 and H.R. 2458 as amended 
by the committee amendment as further amended by the form placed at the 
desk;
  (7) Be considered to have discharged from committee, amended, and 
agreed to H. Con. Res. 466 in the form placed at the desk;
  (8) Be considered to have taken from the Speaker's table and 
concurred in the respective Senate amendments to H.R. 4664, H.R. 2621, 
H.R. 3609, H.R. 5469, and H.R. 3833;
  (9) Be considered to have taken from the Speaker's table and amended 
S. 2237 in the form placed at the desk; and
  (10) That the committees being discharged be printed in the Record, 
the texts of each measure and any amendments thereto be considered as 
read and printed in the Record, and that motions to reconsider each of 
these actions be laid upon the table.
  The SPEAKER pro tempore (Mr. Simpson). The Chair will entertain this 
combined request under the Speaker's guidelines as recorded on page 712 
of the House Rules and Manual with assurances that it has been cleared 
by the bipartisan floor and all committee leadership.
  The Clerk will report the titles of the various bills and 
resolutions.
  The Clerk read as follows:


       Discharged From the Committee on the Judiciary and Passed

  H.R. 5334, to ensure that a public safety officer who suffers a fatal 
heart attack or stroke while on duty shall be presumed to have died in 
the line of duty for purposes of public safety officer survivor 
benefits.

                               H.R. 5334

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Hometown Heroes Survivors 
     Benefits Act of 2002''.

     SEC. 2. FATAL HEART ATTACK OR STROKE ON DUTY PRESUMED TO BE 
                   DEATH IN LINE OF DUTY FOR PURPOSES OF PUBLIC 
                   SAFETY OFFICER SURVIVOR BENEFITS.

       Section 1201 of the Omibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3796) is amended by adding at the end 
     the following new subsection:
       ``(k) For purposes of this section, if a public safety 
     officer dies as the direct and proximate result of a heart 
     attack or stroke suffered while on duty or within 24 hours 
     after participating in a training exercise or responding to 
     an emergency situation, that officer shall be presumed to 
     have died as the direct and proximate result of a personal 
     injury sustained in the line of duty.''.

     SEC. 3. APPLICABILITY.

       Subsection (k) of section 1201 of such Act (as added by 
     section 2) shall apply to deaths occurring on or after 
     January 1, 2002.


    Discharged From the Committee on Energy and Commerce and Passed

  H.R. 5436, to extend the deadline for commencement of construction of 
a hydroelectric project in the State of Oregon.

[[Page H8926]]

                               H.R. 5436

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

     SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY 
                   COMMISSION PROJECT.

       (a) In General.--Notwithstanding the time period specified 
     in section 13 of the Federal Power Act (16 U.S.C. 806) that 
     would otherwise apply to the Federal Energy Regulatory 
     Commission project number 11509, the Commission shall, at the 
     request of the licensee for the project, and after reasonable 
     notice, extend the time period during which the licensee is 
     required to commence the construction of the project for 3 
     consecutive 2-year periods.
       (b) Effective Date.--Subsection (a) takes effect on the 
     date of the expiration of the extension issued by the 
     Commission under section 13 of the Federal Power Act (16 
     U.S.C. 806) for Federal Energy Regulatory Commission project 
     number 11509.
       (c) Reinstatement of Expired License.--If the period 
     required for commencement of construction of the project 
     described in subsection (a) has expired prior to the date of 
     the enactment of this act, the commission shall reinstate the 
     license effective as of the date of its expiration and the 
     first extension authorized under subsection (a) shall take 
     effect on the date of such expiration


    Discharged From the Committee on Energy and Commerce and Passed

  H.R. 5738, to amend the Public Health Service Act with respect to 
special diabetes programs for Type 1 diabetes and Indians.

                               H.R. 5738

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

     SECTION 1. SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES AND 
                   INDIANS.

       (a) Special Diabetes Programs for Type I Diabetes.--Section 
     330B(b)(2) of the Public Health Service Act (42 U.S.C. 254c-
     2(b)(2)) 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) $150,000,000 for each of fiscal years 2004 through 
     2008.''.
       (b) Special Diabetes Programs for Indians.--Section 
     330C(c)(2) of the Public Health Service Act (42 U.S.C. 254c-
     3(c)(2)) 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) $150,000,000 for each of fiscal years 2004 through 
     2008.''.
       (c) Extension of Final Report on Grant Programs.--Section 
     4923(b)(2) of the Balanced Budget Act of 1997 (Public Law 
     105-33; 111 Stat. 251), as amended by section 931(c) of BIPA 
     (114 Stat. 2763A-585), is amended by striking ``2003'' and 
     inserting ``2007''.


    Discharged From the Committee on Energy and Commerce and Passed

  S. 1010, to extend the deadline for commencement of construction of a 
hydroelectric project in the State of North Carolina.

                                S. 1010

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

     SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY 
                   COMMISSION PROJECT.

       (a) In General.--Notwithstanding the time period specified 
     in section 13 of the Federal Power Act (16 U.S.C. 806) that 
     would otherwise apply to the Federal Energy Regulatory 
     Commission project number 11437, the Commission may, at the 
     request of the licensee for the project, and after reasonable 
     notice, in accordance with the requirements of that section 
     and the Commission's procedures under that section, extend 
     the time period during which the licensee is required to 
     commence the construction of the project for 3 consecutive 2-
     year periods.
       (b) Effective Date.--Subsection (a) takes effect on the 
     date of the expiration of the extension issued by the 
     Commission before the date of the enactment of this Act under 
     section 13 of the Federal Power Act (16 U.S.C. 806).


   Discharged From the Committee on Energy and Commerce and From the 
          Committee on Education and the Workforce and Passed

  H.R. 5716, to amend the Employee Retirement Income Security Act of 
1974 and the Public Health Service Act to extend the mental health 
benefits parity provisions for an additional year.

                               H.R. 5716

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Mental Health Parity 
     Reauthorization Act of 2002''.

     SEC. 2. EXTENSION OF MENTAL HEALTH PROVISIONS.

       (a) ERISA.--Section 712(f) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended 
     by striking ``December 31, 2002'' and inserting ``December 
     31, 2003''.
       (b) PHSA.--Section 2705(f) of the Public Health Service Act 
     (42 U.S.C. 300gg-5(f)) is amended by striking ``December 31, 
     2002'' and inserting ``December 31, 2003''.
  Mr. BOEHNER. Mr. Speaker, in 1996, Congress enacted the Mental Health 
Parity Act to prevent employers and health insurers from establishing 
annual and lifetime limits on mental health insurance coverage unless 
similar limits were also established for medical and surgical health 
coverage. These mental health parity benefits offered through the 
Employee Retirement Income Security Act (ERISA) were set to expire on 
December 31, 2002.
  Today the House will take an important step to extend mental health 
parity benefits for another year. Over the past six years, the parity 
law has made significant improvements in mental health coverage. It did 
so by striking a good balance--providing important mental health 
benefits to patients without placing unworkable mandates on employers.
  I committed last year to give the issue of mental health parity 
serious and substantial consideration at the Committee on Education and 
the Workforce. As part of that commitment, the Subcommittee on 
Employer-Employee Relations held the first House hearing on the issue 
of mental health parity on March 13, 2002. At this hearing, the 
Subcommittee heard testimony from both mental health advocates and 
employers concerning current federal mental health parity law, state 
laws that impact the issue, and the implications of expanding mental 
health parity for other employers and employees.
  The Committee will continue to examine the issue of mental health 
parity in a balanced manner that doesn't jeopardize workers' existing 
health care benefits of discourage employers from voluntarily providing 
quality benefits to their employees. It is important to remember that 
the number of uninsured Americans increased to 41.2 million last year, 
and health insurance costs are expected to rise by 15 percent this 
year. Congress should carefully consider the implications of any new or 
expanded federal regulations before enacting proposals that increase 
health care costs and force more Americans to lose their health 
insurance.
  However, today's vote on H.R. 5716 is a vote to preserve the mental 
health benefits that workers currently enjoy. I hope you will join me 
in support of this bill.


     Discharged From the Committee on Financial Services and Passed

  H.R. 5499, to reauthorize the HOPE VI program for revitalization of 
severely distressed public housing, and for other purposes.

                               H.R. 5499

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``HOPE VI Program 
     Reauthorization Act of 2002''.

     SEC. 2. SELECTION CRITERIA.

       Section 24(e)(2) of the United States Housing Act of 1937 
     (42 U.S.C. 1437v(e)(2)) is amended--
       (1) by striking the matter preceding subparagraph (A) and 
     inserting the following:
       ``(2) Selection criteria.--The Secretary shall establish 
     criteria for the award of grants under this section and shall 
     include among the factors--'';
       (2) in subparagraph (B), by striking ``large-scale'';
       (3) in subparagraph (D), by inserting ``and ongoing 
     implementation'' after ``development'';
       (4) in subparagraph (H), by striking ``and'' at the end;
       (5) by redesignating subparagraph (I) as subparagraph (M); 
     and
       (6) by inserting after subparagraph (H) the following new 
     subparagraphs:
       ``(I) the extent to which the applicant can commence and 
     complete the revitalization plan expeditiously;
       ``(J) the extent to which the plan minimizes temporary or 
     permanent displacement of current residents of the public 
     housing site who wish to remain in or return to the 
     revitalized community;
       ``(K) the extent to which the plan sustains or creates more 
     project-based housing units available to persons eligible for 
     public housing in markets where there is demand for the 
     maintenance or creation of such units;
       ``(L) the extent to which the plan gives to existing 
     residents priority for occupancy in dwelling units in the 
     revitalized community; and''.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       Paragraph (1) of section 24(m) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437v(m)(1)) is amended to read as 
     follows:
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated for grants under this section 
     such sums as may be necessary for each of fiscal years 2003 
     and 2004.''.

     SEC. 4. EXTENSION OF PROGRAM.

       Section 24(n) of the United States Housing Act of 1937 (42 
     U.S.C. 1437v(n)) is amended by striking ``September 30, 
     2002'' and inserting ``September 30, 2004''.

[[Page H8927]]

     Discharged From the Committee on Financial Services and Passed

  S. 2239, to amend the National Housing Act to simplify the 
downpayment requirements for FHA mortgage insurance for single family 
homebuyers.

                                S. 2239

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``FHA Downpayment 
     Simplification Act of 2002''.

     SEC. 2. DOWNPAYMENT SIMPLIFICATION.

       Section 203 of the National Housing Act (12 U.S.C. 1709) is 
     amended--
       (1) in subsection (b)--
       (A) by striking ``shall--'' and inserting ``shall comply 
     with the following:'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), in the matter that precedes clause 
     (ii), by moving the margin 2 ems to the right;
       (ii) in the undesignated matter immediately following 
     subparagraph (B)(iii)--
       (I) by striking the second and third sentences of such 
     matter;
       (II) by striking the seventh sentence (relating to 
     principal obligation) and all that follows through the end of 
     the ninth sentence (relating to charges and fees); and
       (III) by striking the eleventh sentence (relating to 
     disclosure notice) and all that follows through the end of 
     the last undesignated paragraph (relating to disclosure 
     notice requirements); and
       (iii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) not to exceed an amount equal to the sum of--
       ``(i) the amount of the mortgage insurance premium paid at 
     the time the mortgage is insured; and
       ``(ii) in the case of--
       ``(I) a mortgage for a property with an appraised value 
     equal to or less than $50,000, 98.75 percent of the appraised 
     value of the property;
       ``(II) a mortgage for a property with an appraised value in 
     excess of $50,000 but not in excess of $125,000, 97.65 
     percent of the appraised value of the property;
       ``(III) a mortgage for a property with an appraised value 
     in excess of $125,000, 97.15 percent of the appraised value 
     of the property; or
       ``(IV) notwithstanding subclauses (II) and (III), a 
     mortgage for a property with an appraised value in excess of 
     $50,000 that is located in an area of the State for which the 
     average closing cost exceeds 2.10 percent of the average, for 
     the State, of the sale price of properties located in the 
     State for which mortgages have been executed, 97.75 percent 
     of the appraised value of the property.'';
       (C) by transferring and inserting the text of paragraph 
     (10)(B) after the period at the end of the first sentence of 
     the undesignated paragraph that immediately follows paragraph 
     (2)(B) (relating to the definition of ``area''); and
       (D) by striking paragraph (10); and
       (2) by inserting after subsection (e), the following:
       ``(f) Disclosure of Other Mortgage Products.--
       ``(1) In general.--In conjunction with any loan insured 
     under this section, an original lender shall provide to each 
     prospective borrower a disclosure notice that provides a 1-
     page analysis of mortgage products offered by that lender and 
     for which the borrower would qualify.
       ``(2) Notice.--The notice required under paragraph (1) 
     shall include--
       ``(A) a generic analysis comparing the note rate (and 
     associated interest payments), insurance premiums, and other 
     costs and fees that would be due over the life of the loan 
     for a loan insured by the Secretary under subsection (b) with 
     the note rates, insurance premiums (if applicable), and other 
     costs and fees that would be expected to be due if the 
     mortgagor obtained instead other mortgage products offered by 
     the lender and for which the borrower would qualify with a 
     similar loan-to-value ratio in connection with a conventional 
     mortgage (as that term is used in section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) or section 302(b)(2) of the Federal National 
     Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as 
     applicable), assuming prevailing interest rates; and
       ``(B) a statement regarding when the requirement of the 
     mortgagor to pay the mortgage insurance premiums for a 
     mortgage insured under this section would terminate, or a 
     statement that the requirement shall terminate only if the 
     mortgage is refinanced, paid off, or otherwise terminated.''.

     SEC. 3. CONFORMING AMENDMENTS.

       Section 245 of the National Housing Act (12 U.S.C. 1715z-
     10) is amended--
       (1) in subsection (a), by striking ``, or if the 
     mortgagor'' and all that follows through ``case of 
     veterans''; and
       (2) in subsection (b)(3), by striking ``, or, if the'' and 
     all that follows through ``for veterans,''.

     SEC. 4. REPEAL OF GNMA GUARANTEE FEE INCREASE.

       Section 972 of the Higher Education Amendments of 1998 
     (Public Law 105-244; 112 Stat. 1837) is hereby repealed.

     SEC. 5. INDEXING OF FHA MULTIFAMILY HOUSING LOAN LIMITS.

       (a) The National Housing Act (12 U.S.C. 1701 et seq.) is 
     amended by inserting after section 206 the following new 
     section 206A (12 U.S.C. 1712A):

     ``SEC. 206A. INDEXING OF FHA MULTIFAMILY HOUSING LOAN LIMITS.

       ``(a) Method of Indexing.--The dollar amounts set forth 
     in--
       ``(1) section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A));
       ``(2) section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A));
       ``(3) section 220(d)(3)(B)(iii)(I) (12 U.S.C. 
     1715k(d)(3)(B)(iii)(I));
       ``(4) section 221(d)(3)(ii)(I) (12 U.S.C. 
     1715l(d)(3)(ii)(I));
       ``(5) section 221(d)(4)(ii)(I) (12 U.S.C. 
     1715l(d)(4)(ii)(I));
       ``(6) section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A)); and
       ``(7) section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A));
     (collectively hereinafter referred to as the ``Dollar 
     Amounts'') shall be adjusted annually (commencing in 2004) on 
     the effective date of the Federal Reserve Board's adjustment 
     of the $400 figure in the Home Ownership and Equity 
     Protection Act of 1994 (HOEPA). The adjustment of the Dollar 
     Amounts shall be calculated using the percentage change in 
     the Consumer Price Index for All Urban Consumers (CPI-U) as 
     applied by the Federal Reserve Board for purposes of the 
     above-described HOEPA adjustment.
       ``(b) Notification.--The Federal Reserve Board on a timely 
     basis shall notify the Secretary, or his designee, in writing 
     of the adjustment described in subsection (a) and of the 
     effective date of such adjustment in order to permit the 
     Secretary to undertake publication in the Federal Register of 
     corresponding adjustments to the Dollar Amounts. The dollar 
     amount of any adjustment shall be rounded to the next lower 
     dollar.''.
       (b) Technical and Conforming Changes.--(1) Section 
     207(c)(3) of the National Housing Act (12 U.S.C. 1713(c)(3)) 
     is amended--
       (A) by inserting ``(A)'' after ``(3)'';
       (B) by striking ``and accept that the Secretary'' through 
     and including ``in this paragraph'' and inserting in lieu 
     thereof:
       ``(B) the Secretary may, by regulation, increase any of the 
     dollar amount limitations in subparagraph (A) (as such 
     limitations may have been adjusted in accordance with section 
     206A of this Act)''.
       (2) Section 213(b)(2) of the National Housing Act (12 
     U.S.C. 1715e(b)(2)) is amended--
       (A) by inserting ``(A)'' following ``(2)'';
       (B) by striking ``: Provided further, That'' the first time 
     that it occurs, through and including ``contained in this 
     paragraph'' and inserting in lieu thereof: ``; (B)(i) the 
     Secretary may, by regulation, increase any of the dollar 
     amount limitations in subparagraph (A) (as such limitations 
     may have been adjusted in accordance with section 206A of 
     this Act)'';
       (C) by striking ``: Provided further, That'' the second 
     time it occurs and inserting in lieu thereof: ``; and (ii)'';
       (D) by striking ``: And provided further, That'' and 
     inserting in lieu thereof'' ``; and (iii)'';
       (E) by striking ``with this subsection without regard to 
     the preceding proviso'' at the end of that subsection and 
     inserting in lieu thereof: ``with this subparagraph 
     (B)(i).''.
       (3) Section 220(d)(3)(B)(iii) of the National Housing Act 
     (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
       (A) by inserting ``(I)'' following ``(iii)'';
       (B) by striking ``design; and except that'' and inserting 
     in lieu thereof: ``design; and (II)'';
       (C) by striking ``any of the foregoing dollar amount 
     limitations contained in this clause'' and inserting in lieu 
     thereof: ``any of the dollar amount limitations in 
     subparagraph (B)(iii)(I) (as such limitations may have been 
     adjusted in accordance with section 206A of this Act)'';
       (D) by striking ``: Provided, That'' through and including 
     ``proviso'' and inserting in lieu thereof: ``with respect to 
     dollar amount limitations applicable to rehabilitation 
     projects described in subclause (II), the Secretary may, by 
     regulation, increase the dollar amount limitations contained 
     in subparagraph (B)(iii)(I) (as such limitations may have 
     been adjusted in accordance with section 206A of this Act)'';
       (E) by striking ``: Provided further,'' and inserting in 
     lieu thereof: ``; (III)'';
       (F) by striking ``subparagraph'' in the second proviso and 
     inserting in lieu thereof ``subparagraph (B)(iii)(I)'';
       (G) in the last proviso, by striking ``: And provided 
     further, That'' and all that follows through and including 
     ``this clause'' and inserting in lieu thereof: ``; (IV) with 
     respect to rehabilitation projects involving not more than 
     five family units, the Secretary may further increase any of 
     the dollar limitations which would otherwise apply to such 
     projects''.
       (4) Section 221(d)(3)(ii) of the National Housing Act (12 
     U.S.C. 1715l(d)(3)(ii)) is amended--
       (A) by inserting ``(I)'' following ``(ii)'';
       (B) by striking ``; and except that'' and all that follows 
     through and including ``in this clause'' and inserting in 
     lieu thereof: ``; (II) the Secretary may, by regulation, 
     increase any of the dollar amount limitations in subclause 
     (I) (as such limitations may have been adjusted in accordance 
     with section 206A of this Act)''.
       (5) Section 221(d)(4)(ii) of the National Housing Act (12 
     U.S.C. 1715l(d)(4)(ii)) is amended--
       (A) by inserting ``(I)'' following ``(ii)'';
       (B) by striking ``; and except that'' and all that follows 
     through and including ``in this clause'' and inserting in 
     lieu thereof: ``; (II)

[[Page H8928]]

     the Secretary may, by regulation, increase any of the dollar 
     limitations in subclause (I) (as such limitations may have 
     been adjusted in accordance with section 206A of this Act)''.
       (6) Section 231(c)(2) of the National Housing Act (12 
     U.S.C. 1715v(c)(2)) is amended--
       (A) by inserting ``(A)'' following ``(2)'';
       (B) by striking ``; and except that'' and all that follows 
     through and including ``in this paragraph'' and inserting in 
     lieu thereof: ``; (B) the Secretary may, by regulation, 
     increase any of the dollar limitations in subparagraph (A) 
     (as such limitations may have been adjusted in accordance 
     with section 206A of this Act)'';
       (C) by striking ``: Provided, That'' and all that follows 
     through and including ``of this section'' and inserting in 
     lieu thereof: ``; (C) the Secretary may, by regulation, 
     increase any of the dollar limitations in subparagraph (A) 
     (as such limitations may have been adjusted in accordance 
     with section 206A of this Act)''.
       (7) Section 234(e)(3) of the National Housing Act (12 
     U.S.C. 1715y(e)(3)) is amended--
       (A) by inserting ``(A)'' following ``(3)'';
       (B) by replacing ``$38,025'' with ``$42,048''; ``$42,120'' 
     with ``$48,481''; ``$50,310'' with ``$58,469''; ``$62,010'' 
     with ``$74,840''; ``$70,200'' with ``$83,375''; ``$43,875'' 
     with ``$44,250''; ``$49,140'' with ``$50,724''; ``$60,255'' 
     with ``$61,680''; ``$75,465'' with ``$79,793''; and 
     ``$85,328'' with ``$87,588'';
       (C) by striking ``; except that each'' and all that follows 
     through and including ``contained in this paragraph'' and 
     inserting in lieu thereof: ``; (B) the Secretary may, by 
     regulation, increase any of the dollar limitations in 
     subparagraph (A) (as such
     limitations may have been adjusted in accordance with section 
     206A of this Act)''.


     Discharged from the Committee on Government Reform and Passed

  H.R. 5280, to designate the facility of the United States Postal 
Service located at 2001 East Willard Street in Philadelphia, 
Pennsylvania, as the ``Robert A. Borski Post Office Building''.

                               H.R. 5280

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

     SECTION 1. ROBERT A. BORSKI POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 2001 East Willard Street in Philadelphia, 
     Pennsylvania, shall be known and designated as the ``Robert 
     A. Borski Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the Robert A. Borski Post Office Building.


     Discharged From the Committee on Government Reform and Passed

  H.R. 5586, to designate the facility of the United States Postal 
Service located at 141 Erie Street in Linesville, Pennsylvania, as the 
``James R. Merry Post Office Building''.

                                H.R. 5586

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

     SECTION 1. JAMES R. MERRY POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 141 Erie Street in Linesville, 
     Pennsylvania, shall be known and designated as the ``James R. 
     Merry Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the James R. Merry Post Office Building.


     Discharged from the Committee on Government Reform and Passed

  H.R. 5609, to designate the facility of the United States Postal 
Service located at 600 East 1st Street in Rome, Georgia, as the 
``Martha Berry Post Office''.

                               H.R. 5609

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

     SECTION 1. MARTHA BERRY POST OFFICE.

       (a) Designation.--The facility of the United States Postal 
     Service located at 600 East 1st Street in Rome, Georgia, 
     shall be known and designated as the ``Martha Berry Post 
     Office''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the Martha Berry Post Office.


     Discharged From the Committee on Government Reform and Passed

  H.R. 628, to designate the facility of the United States Postal 
Service located at 440 South Orange Blossom Trail in Orlando, Florida, 
as the ``Arthur `Pappy' Kennedy Post Office''.

                                H.R. 628

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

     SECTION 1. DESIGNATION.

       The facility of the United States Postal Service located at 
     440 South Orange Blossom Trail in Orlando, Florida, shall be 
     known and designated as the ``Arthur `Pappy' Kennedy Post 
     Office''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the facility referred 
     to in section 1 shall be deemed to be a reference to the 
     Arthur ``Pappy'' Kennedy Post Office.


     Discharged From the Committee on Government Reform and Passed

  H.R. 629, to designate the facility of the United States Postal 
Service located at 1601-1 Main Street in Jacksonville, Florida, as the 
``Eddie Mae Steward Post Office''.

                                H.R. 629

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

     SECTION 1. DESIGNATION.

       The facility of the United States Postal Service located at 
     1601-1 Main Street in Jacksonville, Florida, shall be known 
     and designated as the ``Eddie Mae Steward Post Office''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the facility referred 
     to in section 1 shall be deemed to be a reference to the 
     Eddie Mae Steward Post Office.


     Discharged From the Committee on Government Reform and Passed

  H.R. 3775, to designate the facility of the United States Postal 
Service located at 1502 East Kiest Boulevard in Dallas, Texas, as the 
``Dr. Caesar A.W. Clark, Sr. Post Office Building''.

                               H.R. 3775

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

     SECTION 1. DR. CAESAR A.W. CLARK, SR. POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 1502 East Kiest Boulevard in Dallas, 
     Texas, shall be known and designated as the ``Dr. Caesar A.W. 
     Clark, Sr. Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the Dr. Caesar A.W. Clark, Sr. Post Office 
     Building.


     Discharged From the Committee on Government Reform and Passed

  H.R. 5495, to designate the facility of the United States Postal 
Service located at 115 West Pine Street in Hattiesburg, Mississippi, as 
the ``Major Henry A. Commiskey, Sr. Post Office Building''.

                               H.R. 5495

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

     SECTION 1. MAJOR HENRY A. COMMISKEY, SR. POST OFFICE 
                   BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 115 West Pine Street in Hattiesburg, 
     Mississippi, shall be known and designated as the ``Major 
     Henry A. Commiskey, Sr. Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the Major Henry A. Commiskey, Sr. Post Office 
     Building.


Discharged From the Committee on Transportation and Infrastructure and 
                                 Passed

  H.R. 5604, to designate the Federal building and United States 
courthouse located at 46 East Ohio Street in Indianapolis, Indiana, as 
the ``Birch Bayh Federal Building and United States Courthouse''.

                               H.R. 5604

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

     SECTION 1. DESIGNATION.

       The Federal building and United States courthouse located 
     at 46 East Ohio Street in Indianapolis, Indiana, shall be 
     known and designated as the ``Birch Bayh Federal Building and 
     United States Courthouse''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the Federal building 
     and United States courthouse referred to in section 1 shall 
     be deemed to be a reference to the ``Birch Bayh Federal 
     Building and United States Courthouse''.
  Mr. OBERSTAR. Mr. Speaker, H.R. 5604 is a bill to designate the 
federal building located at 46 East Ohio St., Indianapolis, Indiana, as 
the ``Birch Bayh Federal Building and United States Courthouse.'' This 
bill is sponsored by the entire Indiana delegation in the U.S. House of 
Representatives.
  Birch Bayh was born on January 22, 1928, in Terre Haute, Indiana. He 
attended public schools in Indiana and joined the army in

[[Page H8929]]

1946. In 1954, he was elected to the Indiana House of Representatives 
where he served for eight years, including terms as Minority Leader and 
later, as Speaker of the House.
  In 1962, when he was only 34 years old, Birch Bayh was elected to the 
first of three terms in the U.S. Senate. Senator Bayh quickly became a 
leader on issues of education, equal rights, and Constitutional law. As 
Chairman of the Constitutional Subcommittee of the Senate Judiciary 
Committee, Senator Bayh authored two amendments to the Constitution--
the 25th Amendment setting forth the order of Presidential succession, 
and the 26th Amendment lowering the voting age from 21 to 18 years of 
age. During his time in the Senate, Senator Bayh also served on the 
Appropriations Committee and the Select Committee on Intelligence.
  Senator Bayh was a champion of equal rights for women and minorities. 
He authored Title IX to the Higher Education Act, which mandates equal 
opportunities for women students and faculty in our Nation's schools. 
Further, Senator Bayh was a strong supporter of two pieces of landmark 
legislation--the 1964 Civil Rights Act and the 1965 Voting Rights Act. 
He was also instrumental in enacting the Juvenile Justice Act, which 
mandates the separation of juvenile offenders from adult prison 
populations.
  Since leaving the Senate in the 1980s, Senator Bayh has continued his 
commitment to public service. He serves as a member of the William 
Fulbright Foreign Scholarship Board, National Institute Against 
Prejudice and Violence, and the University of Virginia's Miller Center 
Commission on Presidential Disability and the 25th Amendment.
  It is entirely fitting and proper to honor the contributions of 
Senator Birch Bayh with this designation and I urge my colleagues to 
support H.R. 5604.


Discharged From the Committee on Transportation and Infrastructure and 
                                 Passed

  H.R. 5611, to designate the Federal building located at 324 Twenty-
Fifth Street in Ogden, Utah, as the ``James V. Hansen Federal 
Building''.

                               H.R. 5611

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

     SECTION 1. DESIGNATION.

       The Federal building located at 324 Twenty-Fifth Street in 
     Ogden, Utah, shall be known and designated as the ``James V. 
     Hansen Federal Building''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the Federal building 
     referred to in section 1 shall be deemed to be a reference to 
     the ``James V. Hansen Federal Building''.

     SEC. 3. EFFECTIVE DATE.

       This Act shall take effect on January 1, 2003.
  Mr. OBERSTAR. Mr. Speaker, H.R. 5611 is a bill to designate the 
federal building located at 324 Twenty-Fifth Street in Ogden, Utah as 
the James V. Hansen Federal Building.
  Congressman Hansen began his career in public service in local 
government in Farmington, Utah. He later served four terms in the Utah 
House of Representatives, where he served as Speaker of the House in 
his final term. In 1980, he was elected to the United States Congress 
from Utah's First Congressional District, and has served 11 consecutive 
terms.
  During his service in the House, Congressman Hansen has been an 
active member of the Armed Services Committee, Chairman of the Ethics 
Committee, and most recently, Chairman of the Resources Committee. He 
has fought for legislation to revise the private mortgage insurance 
program to benefit American homeowners, and has been instrumental in 
the development of environmental and natural resources policy.
  After 22 years of service in the U.S. House of Representatives, 
Congressman Hansen has decided to retire. It is both fitting and proper 
that on this, the last day of the Session for this Body in the 107th 
Congress, we honor the career of Congressman Hansen with this 
designation.
  I urge my colleagues to support H.R. 5611.


       Discharged From the Committee on Ways and Means and Passed

  H.R. 5728, to amend the Internal Revenue Code of 1986 to provide 
fairness in tax collection procedures and improved administrative 
efficiency and confidentiality and to reform its penalty and interest 
provisions.

                               H.R. 5728

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Administration Reform Act of 2002''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title; etc.

             TITLE I--FAIRNESS IN TAX COLLECTION PROCEDURES

Sec. 101. Partial payment of tax liability in installment agreements.
Sec. 102. Extension of time for return of property.
Sec. 103. Individuals held harmless on wrongful levy, etc. on 
              individual retirement plan.
Sec. 104. Seven-day threshold on tolling of statute of limitations 
              during tax review.
Sec. 105. Study of liens and levies.
Sec. 106. Low-income taxpayer clinics.

    TITLE II--IMPROVED ADMINISTRATIVE EFFICIENCY AND CONFIDENTIALITY

              Subtitle A--Efficiency of Tax Administration

Sec. 201. Revisions relating to termination of employment of Internal 
              Revenue Service employees for misconduct.
Sec. 202. Confirmation of authority of Tax Court to apply doctrine of 
              equitable recoupment.
Sec. 203. Jurisdiction of Tax Court over collection due process cases.
Sec. 204. Office of Chief Counsel review of offers in compromise.
Sec. 205. 15-day delay in due date for electronically filed individual 
              income tax returns.

               Subtitle B--Confidentiality and Disclosure

Sec. 211. Collection activities with respect to joint return 
              disclosable to either spouse based on oral request.
Sec. 212. Taxpayer representatives not subject to examination on sole 
              basis of representation of taxpayers.
Sec. 213. Compliance by contractors with confidentiality safeguards.
Sec. 214. Higher standards for requests for and consents to disclosure.
Sec. 215. Notice to taxpayer concerning administrative determination of 
              browsing; annual report.
Sec. 216. Expanded disclosure in emergency circumstances.
Sec. 217. Disclosure to State officials of proposed actions related to 
              section 501(c)(3) organizations.

                      Subtitle C--Other Provisions

Sec. 221. Better means of communicating with taxpayers.
Sec. 222. Enrolled agents.
Sec. 223. Financial management service fees.
Sec. 224. Amendment to Treasury auction reforms.

          TITLE III--REFORM OF PENALTY AND INTEREST PROVISIONS

Sec. 301. Failure to pay estimated tax penalty converted to interest 
              charge on accumulated unpaid balance.
Sec. 302. Exclusion from gross income for interest on overpayments of 
              income tax by individuals.
Sec. 303. Abatement of interest.
Sec. 304. Deposits made to suspend running of interest on potential 
              underpayments.
Sec. 305. Expansion of interest netting for individuals.
Sec. 306. Waiver of certain penalties for first-time unintentional 
              minor errors.
Sec. 307. Frivolous tax submissions.
Sec. 308. Clarification of application of Federal tax deposit penalty.

             TITLE I--FAIRNESS IN TAX COLLECTION PROCEDURES

     SEC. 101. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT 
                   AGREEMENTS.

       (a) In General.--
       (1) Section 6159(a) (relating to authorization of 
     agreements) is amended--
       (A) by striking ``satisfy liability for payment of'' and 
     inserting ``make payment on'', and
       (B) by inserting ``full or partial'' after ``facilitate''.
       (2) Section 6159(c) (relating to Secretary required to 
     enter into installment agreements in certain cases) is 
     amended in the matter preceding paragraph (1) by inserting 
     ``full'' before ``payment''.
       (b) Requirement To Review Partial Payment Agreements Every 
     Two Years.--Section 6159 is amended by redesignating 
     subsections (d) and (e) as subsections (e) and (f), 
     respectively, and inserting after subsection (c) the 
     following new subsection:
       ``(d) Secretary Required To Review Installment Agreements 
     for Partial Collection Every Two Years.--In the case of an 
     agreement entered into by the Secretary under subsection (a) 
     for partial collection of a tax liability, the Secretary 
     shall review the agreement at least once every 2 years.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into on or after the date 
     of the enactment of this Act.

     SEC. 102. EXTENSION OF TIME FOR RETURN OF PROPERTY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b)

[[Page H8930]]

     of section 6343 (relating to return of property) is amended 
     by striking ``9 months'' and inserting ``2 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 (relating to suits by persons other than 
     taxpayers) is amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``2 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``2-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. 103. INDIVIDUALS HELD HARMLESS ON WRONGFUL LEVY, ETC., 
                   ON INDIVIDUAL RETIREMENT PLAN.

       (a) In General.--Section 6343 (relating to authority to 
     release levy and return property) is amended by adding at the 
     end the following new subsection:
       ``(f) Individuals Held Harmless on Wrongful Levy, etc., on 
     Individual Retirement Plan.--
       ``(1) In general.--If the Secretary determines that an 
     individual retirement plan has been levied upon in a case to 
     which subsection (b) or (d)(2)(A) applies, an amount equal to 
     the sum of--
       ``(A) the amount of money returned by the Secretary on 
     account of such levy, and
       ``(B) interest paid under subsection (c) on such amount of 
     money,

     may be deposited into an individual retirement plan (other 
     than an endowment contract) to which a rollover from the plan 
     levied upon is permitted.
       ``(2) Treatment as rollover.--The distribution on account 
     of the levy and any deposit under paragraph (1) with respect 
     to such distribution shall be treated for purposes of this 
     title as if such distribution and deposit were part of a 
     rollover described in section 408(d)(3)(A)(i); except that--
       ``(A) interest paid under subsection (c) shall be treated 
     as part of such distribution and as not includible in gross 
     income,
       ``(B) the 60-day requirement in such section shall be 
     treated as met if the deposit is made not later than the 60th 
     day after the day on which the individual receives an amount 
     under paragraph (1) from the Secretary, and
       ``(C) such deposit shall not be taken into account under 
     section 408(d)(3)(B).
       ``(3) Refund, etc., of income tax on levy.--If any amount 
     is includible in gross income for a taxable year by reason of 
     a levy referred to in paragraph (1) and any portion of such 
     amount is treated as a rollover under paragraph (2), any tax 
     imposed by chapter 1 on such portion shall not be assessed, 
     and if assessed shall be abated, and if collected shall be 
     credited or refunded as an overpayment made on the due date 
     for filing the return of tax for such taxable year.
       ``(4) Interest.--Notwithstanding subsection (d), interest 
     shall be allowed under subsection (c) in a case in which the 
     Secretary makes a determination described in subsection 
     (d)(2)(A) with respect to a levy upon an individual 
     retirement plan.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid under subsections (b), (c), and 
     (d)(2)(A) of section 6343 of the Internal Revenue Code of 
     1986 after December 31, 2002.

     SEC. 104. SEVEN-DAY THRESHOLD ON TOLLING OF STATUTE OF 
                   LIMITATIONS DURING TAX REVIEW.

       (a) In General.--Section 7811(d)(1) (relating to suspension 
     of running of period of limitation) is amended by inserting 
     after ``application,'' the following: ``but only if the date 
     of such decision is at least 7 days after the date of the 
     taxpayer's application''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to applications filed after the date of the 
     enactment of this Act.

     SEC. 105. STUDY OF LIENS AND LEVIES.

       The Secretary of the Treasury, or the Secretary's delegate, 
     shall conduct a study of the practices of the Internal 
     Revenue Service concerning liens and levies. The study shall 
     examine--
       (1) the declining use of liens and levies by the Internal 
     Revenue Service, and
       (2) the practicality of recording liens and levying against 
     property in cases in which the cost of such actions exceeds 
     the amount to be realized from such property.

     Not later than 1 year after the date of the enactment of this 
     Act, the Secretary shall submit such study to the Committee 
     on Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate.

     SEC. 106. LOW-INCOME TAXPAYER CLINICS.

       (a) Limitation on Amount of Grants.--Paragraph (1) of 
     section 7526(c) (relating to special rules and limitations) 
     is amended by striking ``$6,000,000 per year'' and inserting 
     ``$9,000,000 for 2002, $12,000,000 for 2003, and $15,000,000 
     for each year thereafter''.
       (b) Promotion of Clinics.--Section 7526(c) is amended by 
     adding at the end the following new paragraph:
       ``(7) Promotion of clinics.--The Secretary is authorized to 
     promote the benefits of and encourage the use of low-income 
     taxpayer clinics through the use of mass communications, 
     referrals, and other means.''.

    TITLE II--IMPROVED ADMINISTRATIVE EFFICIENCY AND CONFIDENTIALITY

              Subtitle A--Efficiency of Tax Administration

     SEC. 201. REVISIONS RELATING TO TERMINATION OF EMPLOYMENT OF 
                   INTERNAL REVENUE SERVICE EMPLOYEES FOR 
                   MISCONDUCT.

       (a) In General.--Subchapter A of chapter 80 (relating to 
     application of internal revenue laws) is amended by inserting 
     after section 7804 the following new section:

     ``SEC. 7804A. DISCIPLINARY ACTIONS FOR MISCONDUCT.

       ``(a) Disciplinary Actions.--
       ``(1) In general.--Subject to subsection (c), the 
     Commissioner shall take an action in accordance with the 
     guidelines established under paragraph (2) against any 
     employee of the Internal Revenue Service if there is a final 
     administrative or judicial determination that such employee 
     committed any act or omission described under subsection (b) 
     in the performance of the employee's official duties or where 
     a nexus to the employee's position exists.
       ``(2) Guidelines.--The Commissioner shall issue guidelines 
     for determining the appropriate level of discipline, up to 
     and including termination of employment, for committing any 
     act or omission described under subsection (b).
       ``(b) Acts or Omissions.--The acts or omissions described 
     under this subsection are--
       ``(1) willful failure to obtain the required approval 
     signatures on documents authorizing the seizure of a 
     taxpayer's home, personal belongings, or business assets;
       ``(2) willfully providing a false statement under oath with 
     respect to a material matter involving a taxpayer or taxpayer 
     representative;
       ``(3) with respect to a taxpayer or taxpayer 
     representative, the willful violation of--
       ``(A) any right under the Constitution of the United 
     States;
       ``(B) any civil right established under--
       ``(i) title VI or VII of the Civil Rights Act of 1964;
       ``(ii) title IX of the Education Amendments of 1972;
       ``(iii) the Age Discrimination in Employment Act of 1967;
       ``(iv) the Age Discrimination Act of 1975;
       ``(v) section 501 or 504 of the Rehabilitation Act of 1973; 
     or
       ``(vi) title I of the Americans with Disabilities Act of 
     1990; or
       ``(C) the Internal Revenue Service policy on unauthorized 
     inspection of returns or return information;
       ``(4) willfully falsifying or destroying documents to 
     conceal mistakes made by any employee with respect to a 
     matter involving a taxpayer or taxpayer representative;
       ``(5) assault or battery on a taxpayer or taxpayer 
     representative, but only if there is a criminal conviction, 
     or a final adverse judgment by a court in a civil case, with 
     respect to the assault or battery;
       ``(6) willful violations of this title, Department of the 
     Treasury regulations, or policies of the Internal Revenue 
     Service (including the Internal Revenue Manual) for the 
     purpose of retaliating against, or harassing, a taxpayer or 
     taxpayer representative;
       ``(7) willful misuse of the provisions of section 6103 for 
     the purpose of concealing information from a congressional 
     inquiry;
       ``(8) willful failure to file any return of tax required 
     under this title on or before the date prescribed therefor 
     (including any extensions) when a tax is due and owing, 
     unless such failure is due to reasonable cause and not due to 
     willful neglect;
       ``(9) willful understatement of Federal tax liability, 
     unless such understatement is due to reasonable cause and not 
     due to willful neglect; and
       ``(10) threatening to audit a taxpayer, or to take other 
     action under this title, for the purpose of extracting 
     personal gain or benefit.
       ``(c) Determinations of Commissioner.--
       ``(1) In general.--The Commissioner may take a personnel 
     action other than a disciplinary action provided for in the 
     guidelines under subsection (a)(2) for an act or omission 
     described under subsection (b).
       ``(2) Discretion.--The exercise of authority under 
     paragraph (1) shall be at the sole discretion of the 
     Commissioner and may not be delegated to any other officer. 
     The Commissioner, in his sole discretion, may establish a 
     procedure to determine if an individual should be referred to 
     the Commissioner for a determination by the Commissioner 
     under paragraph (1).
       ``(3) No appeal.--Notwithstanding any other provision of 
     law, any determination of the Commissioner under this 
     subsection may not be reviewed in any administrative or 
     judicial proceeding. A finding that an act or omission 
     described under subsection (b) occurred may be reviewed.
       ``(d) Definition.--For the purposes of the provisions 
     described in clauses (i), (ii), and (iv) of subsection 
     (b)(3)(B), references to a program or activity regarding 
     Federal financial assistance or an education program or 
     activity receiving Federal financial assistance shall include 
     any program or activity conducted by the Internal Revenue 
     Service for a taxpayer.
       ``(e) Annual Report.--The Commissioner shall submit to 
     Congress annually a report on disciplinary actions under this 
     section.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     80 is amended by inserting after the item relating to section 
     7804 the following new item:

``Sec. 7804A. Disciplinary actions for misconduct.''.


[[Page H8931]]


       (c) Repeal of Superseded Section.--Section 1203 of the 
     Internal Revenue Service Restructuring and Reform Act of 1998 
     (Public Law 105-206; 112 Stat. 720) is repealed.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 202. CONFIRMATION OF AUTHORITY OF TAX COURT TO APPLY 
                   DOCTRINE OF EQUITABLE RECOUPMENT.

       (a) Confirmation of Authority of Tax Court To Apply 
     Doctrine of Equitable Recoupment.--Subsection (b) of section 
     6214 (relating to jurisdiction over other years and quarters) 
     is amended by adding at the end the following new sentence: 
     ``Notwithstanding the preceding sentence, the Tax Court may 
     apply the doctrine of equitable recoupment to the same extent 
     that it is available in civil tax cases before the district 
     courts of the United States and the United States Court of 
     Federal Claims.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to any action or proceeding in the Tax Court with 
     respect to which a decision has not become final (as 
     determined under section 7481 of the Internal Revenue Code of 
     1986) as of the date of the enactment of this Act.

     SEC. 203. JURISDICTION OF TAX COURT OVER COLLECTION DUE 
                   PROCESS CASES.

       (a) In General.--Section 6330(d)(1) (relating to judicial 
     review of determination) is amended to read as follows:
       ``(1) Judicial review of determination.--The person may, 
     within 30 days of a determination under this section, appeal 
     such determination to the Tax Court (and the Tax Court shall 
     have jurisdiction with respect to such matter).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to judicial appeals filed after the date of the 
     enactment of this Act.

     SEC. 204. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS IN 
                   COMPROMISE.

       (a) In General.--Section 7122(b) (relating to record) is 
     amended by striking ``Whenever a compromise'' and all that 
     follows through ``his delegate'' and inserting ``If the 
     Secretary determines that an opinion of the General Counsel 
     for the Department of the Treasury, or the Counsel's 
     delegate, is required with respect to a compromise, there 
     shall be placed on file in the office of the Secretary such 
     opinion''.
       (b) Conforming Amendments.--Section 7122(b) is amended by 
     striking the second and third sentences.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offers-in-compromise submitted or pending on 
     or after the date of the enactment of this Act.

     SEC. 205. 15-DAY DELAY IN DUE DATE FOR ELECTRONICALLY FILED 
                   INDIVIDUAL INCOME TAX RETURNS.

       (a) In General.--Section 6072 (relating to time for filing 
     income tax returns) is amended by adding at the end the 
     following new subsection:
       ``(f) Electronically Filed Returns of Individuals.--
       ``(1) In general.--Returns of an individual under section 
     6012 or 6013 (other than an individual to whom subsection (c) 
     applies) which are filed electronically--
       ``(A) in the case of returns filed on the basis of a 
     calendar year, shall be filed on or before the 30th day of 
     April following the close of the calendar year, and
       ``(B) in the case of returns filed on the basis of a fiscal 
     year, shall be filed on or before the last day of the 4th 
     month following the close of the fiscal year.
       ``(2) Electronic filing.--Paragraph (1) shall not apply to 
     any return unless--
       ``(A) such return is accepted by the Secretary, and
       ``(B) the balance due (if any) shown on such return is paid 
     electronically in a manner prescribed by the Secretary.
       ``(3) Special rules.--
       ``(A) Estimated tax.--If--
       ``(i) paragraph (1) applies to an individual for any 
     taxable year, and
       ``(ii) there is an overpayment of tax shown on the return 
     for such year which the individual allows against the 
     individual's obligation under section 6641,
     then, with respect to the amount so allowed, any reference in 
     section 6641 to the April 15 following such taxable year 
     shall be treated as a reference to April 30.
       ``(B) References to due date.--Paragraph (1) shall apply 
     solely for purposes of determining the due date for the 
     individual's obligation to file and pay tax and, except as 
     otherwise provided by the Secretary, shall be treated as an 
     extension of the due date for any other purpose under this 
     title.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

               Subtitle B--Confidentiality and Disclosure

     SEC. 211. COLLECTION ACTIVITIES WITH RESPECT TO JOINT RETURN 
                   DISCLOSABLE TO EITHER SPOUSE BASED ON ORAL 
                   REQUEST.

       (a) In General.--Paragraph (8) of section 6103(e) (relating 
     to disclosure of collection activities with respect to joint 
     return) is amended by striking ``in writing'' the first place 
     it appears.
       (b) Effective Date.--The amendment made by this section 
     shall apply to requests made after the date of the enactment 
     of this Act.

     SEC. 212. TAXPAYER REPRESENTATIVES NOT SUBJECT TO EXAMINATION 
                   ON SOLE BASIS OF REPRESENTATION OF TAXPAYERS.

       (a) In General.--Subsection (h) of section 6103 (relating 
     to disclosure to certain Federal officers and employees for 
     purposes of tax administration, etc.) is amended by adding at 
     the end the following new paragraph:
       ``(7) Taxpayer representatives.--Notwithstanding paragraph 
     (1), the return of the representative of a taxpayer whose 
     return is being examined by an officer or employee of the 
     Department of the Treasury shall not be open to inspection by 
     such officer or employee on the sole basis of the 
     representative's relationship to the taxpayer unless a 
     supervisor of such officer or employee has approved the 
     inspection of the return of such representative on a basis 
     other than by reason of such relationship.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 213. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY 
                   SAFEGUARDS.

       (a) In General.--Section 6103(p) (relating to State law 
     requirements) is amended by adding at the end the following 
     new paragraph:
       ``(9) Disclosure to contractors.--Notwithstanding any other 
     provision of this section, no return or return information 
     shall be disclosed by any officer or employee of any Federal 
     agency or State to any contractor of such agency or State 
     unless such agency or State--
       ``(A) has requirements in effect which require each 
     contractor of such agency or State which would have access to 
     returns or return information to provide safeguards (within 
     the meaning of paragraph (4)) to protect the confidentiality 
     of such returns or return information,
       ``(B) agrees to conduct an annual, on-site review (mid-
     point review in the case of contracts of less than 1 year in 
     duration) of each contractor to determine compliance with 
     such requirements,
       ``(C) submits the findings of the most recent review 
     conducted under subparagraph (B) to the Secretary as part of 
     the report required by paragraph (4)(E), and
       ``(D) certifies to the Secretary for the most recent annual 
     period that all contractors are in compliance with all such 
     requirements.

     The certification required by subparagraph (D) shall include 
     the name and address of each contractor, a description of the 
     contract of the contractor with the Federal agency or State, 
     and the duration of such contract.''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     6103(p)(8) is amended by inserting ``or paragraph (9)'' after 
     ``subparagraph (A)''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to disclosures made after December 31, 2002.
       (2) Certifications.--The first certification under section 
     6103(p)(9)(D) of the Internal Revenue Code of 1986, as added 
     by subsection (a), shall be made with respect to calendar 
     year 2003.

     SEC. 214. HIGHER STANDARDS FOR REQUESTS FOR AND CONSENTS TO 
                   DISCLOSURE.

       (a) In General.--Subsection (c) of section 6103 (relating 
     to disclosure of returns and return information to designee 
     of taxpayer) is amended by adding at the end the following 
     new paragraphs:
       ``(2) Requirements for valid requests and consents.--A 
     request for or consent to disclosure under paragraph (1) 
     shall only be valid for purposes of this section or sections 
     7213, 7213A, or 7431 if--
       ``(A) at the time of execution, such request or consent 
     designates a recipient of such disclosure and is dated, and
       ``(B) at the time such request or consent is submitted to 
     the Secretary, the submitter of such request or consent 
     certifies, under penalty of perjury, that such request or 
     consent complied with subparagraph (A).
       ``(3) Restrictions on persons obtaining information.--Any 
     person shall, as a condition for receiving return or return 
     information under paragraph (1)--
       ``(A) ensure that such return and return information is 
     kept confidential,
       ``(B) use such return and return information only for the 
     purpose for which it was requested, and
       ``(C) not disclose such return and return information 
     except to accomplish the purpose for which it was requested, 
     unless a separate consent from the taxpayer is obtained.
       ``(4) Requirements for form prescribed by secretary.--For 
     purposes of this subsection, the Secretary shall prescribe a 
     form for requests and consents which shall--
       ``(A) contain a warning, prominently displayed, informing 
     the taxpayer that the form should not be signed unless it is 
     completed,
       ``(B) state that if the taxpayer believes there is an 
     attempt to coerce him to sign an incomplete or blank form, 
     the taxpayer should report the matter to the Treasury 
     Inspector General for Tax Administration, and
       ``(C) contain the address and telephone number of the 
     Treasury Inspector General for Tax Administration.''.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Treasury Inspector General for Tax 
     Administration shall submit a report to the Congress on 
     compliance with the designation and certification 
     requirements applicable to requests for or consent to 
     disclosure of returns and return information under section 
     6103(c) of the Internal Revenue Code of 1986, as amended by 
     subsection (a). Such report shall--
       (1) evaluate (on the basis of random sampling) whether--

[[Page H8932]]

       (A) the amendment made by subsection (a) is achieving the 
     purposes of this section;
       (B) requesters and submitters for such disclosure are 
     continuing to evade the purposes of this section and, if so, 
     how; and
       (C) the sanctions for violations of such requirements are 
     adequate; and
       (2) include such recommendations that the Treasury 
     Inspector General for Tax Administration considers necessary 
     or appropriate to better achieve the purposes of this 
     section.
       (c) Conforming Amendment.--Section 6103(c) is amended by 
     striking ``Taxpayer.--The Secretary'' and inserting 
     ``Taxpayer.--
       ``(1) In general.--The Secretary''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to requests and consents made after 3 months 
     after the date of the enactment of this Act.

     SEC. 215. NOTICE TO TAXPAYER CONCERNING ADMINISTRATIVE 
                   DETERMINATION OF BROWSING; ANNUAL REPORT.

       (a) Notice to Taxpayer.--Subsection (e) of section 7431 
     (relating to notification of unlawful inspection and 
     disclosure) is amended by adding at the end the following: 
     ``The Secretary shall also notify such taxpayer if the 
     Treasury Inspector General for Tax Administration determines 
     that such taxpayer's return or return information was 
     inspected or disclosed in violation of any of the provisions 
     specified in paragraph (1), (2), or (3).''.
       (b) Reports.--Subsection (p) of section 6103 (relating to 
     procedure and recordkeeping), as amended by section 245, is 
     further amended by adding at the end the following new 
     paragraph:
       ``(10) Report on unauthorized disclosure and inspection.--
     As part of the report required by paragraph (3)(C) for each 
     calendar year, the Secretary shall furnish information 
     regarding the unauthorized disclosure and inspection of 
     returns and return information, including the number, status, 
     and results of--
       ``(A) administrative investigations,
       ``(B) civil lawsuits brought under section 7431 (including 
     the amounts for which such lawsuits were settled and the 
     amounts of damages awarded), and
       ``(C) criminal prosecutions.''.
       (c) Effective Date.--
       (1) Notice.--The amendment made by subsection (a) shall 
     apply to determinations made after the date of the enactment 
     of this Act.
       (2) Reports.--The amendment made by subsection (b) shall 
     apply to calendar years ending after the date of the 
     enactment of this Act.

     SEC. 216. EXPANDED DISCLOSURE IN EMERGENCY CIRCUMSTANCES.

       (a) In General.--Section 6103(i)(3)(B) (relating to danger 
     of death or physical injury) is amended by striking ``or 
     State'' and inserting ``, State, or local''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 217. DISCLOSURE TO STATE OFFICIALS OF PROPOSED ACTIONS 
                   RELATED TO SECTION 501(C)(3) ORGANIZATIONS.

       (a) In General.--Subsection (c) of section 6104 is amended 
     by striking paragraph (2) and inserting the following new 
     paragraphs:
       ``(2) Disclosure of proposed actions.--
       ``(A) Specific notifications.--In the case of an 
     organization to which paragraph (1) applies, the Secretary 
     may disclose to the appropriate State officer--
       ``(i) a notice of proposed refusal to recognize such 
     organization as an organization described in section 
     501(c)(3) or a notice of proposed revocation of such 
     organization's recognition as an organization exempt from 
     taxation,
       ``(ii) the issuance of a letter of proposed deficiency of 
     tax imposed under section 507 or chapter 41 or 42, and
       ``(iii) the names and taxpayer identification numbers of 
     organizations that have applied for recognition as 
     organizations described in section 501(c)(3).
       ``(B) Additional disclosures.--Returns and return 
     information of organizations with respect to which 
     information is disclosed under subparagraph (A) may be made 
     available for inspection by or disclosed to an appropriate 
     State officer.
       ``(C) Procedures for disclosure.--Information may be 
     inspected or disclosed under subparagraph (A) or (B) only--
       ``(i) upon written request by an appropriate State officer, 
     and
       ``(ii) for the purpose of, and only to the extent necessary 
     in, the administration of State laws regulating such 
     organizations.

     Such information may only be inspected by or disclosed to 
     representatives of the appropriate State officer designated 
     as the individuals who are to inspect or to receive the 
     returns or return information under this paragraph on behalf 
     of such officer.
       ``(D) Disclosures other than by request.--The Secretary may 
     make available for inspection or disclose returns and return 
     information of an organization to which paragraph (1) applies 
     to an appropriate State officer of any State if the Secretary 
     determines that such inspection or disclosure may facilitate 
     the resolution of State and Federal issues relating to such 
     organization.
       ``(3) Use in judicial and administrative proceedings.--
     Returns and return information disclosed pursuant to this 
     subsection may be disclosed in civil administrative and 
     judicial proceedings pertaining to the enforcement of State 
     laws regulating such organizations in a manner prescribed by 
     the Secretary similar to that for tax administration 
     proceedings under section 6103(h)(4).
       ``(4) No disclosure if impairment.--Returns and return 
     information shall not be disclosed under this subsection, or 
     in any proceeding described in paragraph (3), to the extent 
     that the Secretary determines that such disclosure would 
     seriously impair Federal tax administration.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) Return and return information.--The terms `return' 
     and `return information' have the respective meanings given 
     to such terms by section 6103(b).
       ``(B) Appropriate state officer.--The term `appropriate 
     State officer' means--
       ``(i) the State attorney general, or
       ``(ii) the head of any State agency, body, or commission 
     which is charged under the laws of such State with 
     responsibility for overseeing organizations of the type 
     described in section 501(c)(3).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 6103 is amended--
       (A) by inserting ``or section 6104(c)'' after ``this 
     section'' in paragraph (2), and
       (B) by striking ``or subsection (n)'' in paragraph (3) and 
     inserting ``subsection (n), or section 6104(c)''.
       (2) Subparagraph (A) of section 6103(p)(3) is amended by 
     inserting ``and section 6104(c)'' after ``section'' in the 
     first sentence.
       (3) Paragraph (4) of section 6103(p) is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``(16) or any other person described in subsection (l)(16)'' 
     and inserting ``(16), any other person described in 
     subsection (l)(16), or any appropriate State officer (as 
     defined in section 6104(c))'', and
       (B) in subparagraph (F), by striking ``or any other person 
     described in subsection (l)(16)'' and inserting ``any other 
     person described in subsection (l)(16), or any appropriate 
     State officer (as defined in section 6104(c))''.
       (4) Paragraph (2) of section 7213(a) is amended by 
     inserting ``or under section 6104(c)'' after ``6103''.
       (5) Paragraph (2) of section 7213A(a) is amended by 
     inserting ``or 6104(c)'' after ``6103''.
       (6) Paragraph (2) of section 7431(a) is amended by 
     inserting ``(including any disclosure in violation of section 
     6104(c))'' after ``6103''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     but shall not apply to requests made before such date.

                      Subtitle C--Other Provisions

     SEC. 221. BETTER MEANS OF COMMUNICATING WITH TAXPAYERS.

       Not later than 18 months after the date of the enactment of 
     this Act, the Treasury Inspector General for Tax 
     Administration shall submit a report to Congress evaluating 
     whether technological advances, such as e-mail and facsimile 
     transmission, permit the use of alternative means for the 
     Internal Revenue Service to communicate with taxpayers.

     SEC. 222. ENROLLED AGENTS.

       (a) In General.--Chapter 77 (relating to miscellaneous 
     provisions) is amended by adding at the end the following new 
     section:

     ``SEC. 7527. ENROLLED AGENTS.

       ``(a) In General.--The Secretary may prescribe such 
     regulations as may be necessary to regulate the conduct of 
     enrolled agents in regards to their practice before the 
     Internal Revenue Service.
       ``(b) Use of Credentials.--Any enrolled agents properly 
     licensed to practice as required under rules promulgated 
     under section (a) herein shall be allowed to use the 
     credentials or designation as `enrolled agent', `EA', or 
     `E.A.'.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7525. Enrolled agents.''.

       (c) Prior Regulations.--Nothing in the amendments made by 
     this section shall be construed to have any effect on part 10 
     of title 31, Code of Federal Regulations, or any other 
     Federal rule or regulation issued before the date of the 
     enactment of this Act.

     SEC. 223. FINANCIAL MANAGEMENT SERVICE FEES.

       Notwithstanding any other provision of law, the Financial 
     Management Service may charge the Internal Revenue Service, 
     and the Internal Revenue Service may pay the Financial 
     Management Service, a fee sufficient to cover the full cost 
     of implementing a continuous levy program under subsection 
     (h) of section 6331 of the Internal Revenue Code of 1986. Any 
     such fee shall be based on actual levies made and shall be 
     collected by the Financial Management Service by the 
     retention of a portion of amounts collected by levy pursuant 
     to that subsection. Amounts received by the Financial 
     Management Service as fees under that subsection shall be 
     deposited into the account of the Department of the Treasury 
     under section 3711(g)(7) of title 31, United States Code, and 
     shall be collected and accounted for in accordance with the 
     provisions of that section. The amount credited against the 
     taxpayer's liability on account of the continuous levy shall 
     be the amount levied, without reduction for the amount paid 
     to the Financial Management Service as a fee.

     SEC. 224. AMENDMENT TO TREASURY AUCTION REFORMS.

       (a) In General.--Clause (i) of section 202(c)(4)(B) of the 
     Government Securities Act

[[Page H8933]]

     Amendments of 1993 (31 U.S.C. 3121 note) is amended by 
     inserting before the semicolon ``(or, if earlier, at the time 
     the Secretary releases the minutes of the meeting in 
     accordance with paragraph (2))''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to meetings held after the date of the enactment 
     of this Act.

          TITLE III--REFORM OF PENALTY AND INTEREST PROVISIONS

     SEC. 301. FAILURE TO PAY ESTIMATED TAX PENALTY CONVERTED TO 
                   INTEREST CHARGE ON ACCUMULATED UNPAID BALANCE.

       (a) Penalty Moved to Interest Chapter of Code.--The 
     Internal Revenue Code of 1986 is amended by redesignating 
     section 6654 as section 6641 and by moving section 6641 (as 
     so redesignated) from part I of subchapter A of chapter 68 to 
     the end of subchapter E of chapter 67 (as added by subsection 
     (e)(1) of this section).
       (b) Penalty Converted to Interest Charge.--The heading and 
     subsections (a) and (b) of section 6641 (as so redesignated) 
     are amended to read as follows:

     ``SEC. 6641. INTEREST ON FAILURE BY INDIVIDUAL TO PAY 
                   ESTIMATED INCOME TAX.

       ``(a) In General.--Interest shall be paid on any 
     underpayment of estimated tax by an individual for a taxable 
     year for each day of such underpayment. The amount of such 
     interest for any day shall be the product of the underpayment 
     rate established under subsection (b)(2) multiplied by the 
     amount of the underpayment.
       ``(b) Amount of Underpayment; Interest Rate.--For purposes 
     of subsection (a)--
       ``(1) Amount.--The amount of the underpayment on any day 
     shall be the excess of--
       ``(A) the sum of the required installments for the taxable 
     year the due dates for which are on or before such day, over
       ``(B) the sum of the amounts (if any) of estimated tax 
     payments made on or before such day on such required 
     installments.
       ``(2) Determination of interest rate.--
       ``(A) In general.--The underpayment rate with respect to 
     any day in an installment underpayment period shall be the 
     underpayment rate established under section 6621 for the 
     first day of the calendar quarter in which such installment 
     underpayment period begins.
       ``(B) Installment underpayment period.--For purposes of 
     subparagraph (A), the term `installment underpayment period' 
     means the period beginning on the day after the due date for 
     a required installment and ending on the due date for the 
     subsequent required installment (or in the case of the 4th 
     required installment, the 15th day of the 4th month following 
     the close of a taxable year).
       ``(C) Daily rate.--The rate determined under subparagraph 
     (A) shall be applied on a daily basis and shall be based on 
     the assumption of 365 days in a calendar year.
       ``(3) Termination of estimated tax interest.--No day after 
     the end of the installment underpayment period for the 4th 
     required installment specified in paragraph (2)(B) for a 
     taxable year shall be treated as a day of underpayment with 
     respect to such taxable year.''.
       (c) Increase in Safe Harbor Where Tax is Small.--
       (1) In general.--Clause (i) of section 6641(d)(1)(B) (as so 
     redesignated) is amended to read as follows:
       ``(i) the lesser of--

       ``(I) 90 percent of the tax shown on the return for the 
     taxable year (or, if no return is filed, 90 percent of the 
     tax for such year), or
       ``(II) the tax shown on the return for the taxable year 
     (or, if no return is filed, the tax for such year) reduced 
     (but not below zero) by $2,000, or''.

       (2) Conforming amendment.--Subsection (e) of section 6641 
     (as so redesignated) is amended by striking paragraph (1) and 
     redesignating paragraphs (2) and (3) as paragraphs (1) and 
     (2), respectively.
       (d) Conforming Amendments.--
       (1) Paragraphs (1) and (2) of subsection (e) (as 
     redesignated by subsection (c)(2)) and subsection (h) of 
     section 6641 (as so designated) are each amended by striking 
     ``addition to tax'' each place it occurs and inserting 
     ``interest''.
       (2) Section 167(g)(5)(D) is amended by striking ``6654'' 
     and inserting ``6641''.
       (3) Section 460(b)(1) is amended by striking ``6654'' and 
     inserting ``6641''.
       (4) Section 3510(b) is amended--
       (A) by striking ``section 6654'' in paragraph (1) and 
     inserting ``section 6641'';
       (B) by amending paragraph (2)(B) to read as follows:
       ``(B) no interest would be required to be paid (but for 
     this section) under 6641 for such taxable year by reason of 
     the $2,000 amount specified in section 
     6641(d)(1)(B)(i)(II).'';
       (C) by striking ``section 6654(d)(2)'' in paragraph (3) and 
     inserting ``section 6641(d)(2)''; and
       (D) by striking paragraph (4).
       (5) Section 6201(b)(1) is amended by striking ``6654'' and 
     inserting ``6641''.
       (6) Section 6601(h) is amended by striking ``6654'' and 
     inserting ``6641''.
       (7) Section 6621(b)(2)(B) is amended by striking ``addition 
     to tax under section 6654'' and inserting ``interest required 
     to be paid under section 6641''.
       (8) Section 6622(b) is amended--
       (A) by striking ``Penalty for'' in the heading; and
       (B) by striking ``addition to tax under section 6654 or 
     6655'' and inserting ``interest required to be paid under 
     section 6641 or addition to tax under section 6655''.
       (9) Section 6658(a) is amended--
       (A) by striking ``6654, or 6655'' and inserting ``or 6655, 
     and no interest shall be required to be paid under section 
     6641,''; and
       (B) by inserting ``or paying interest'' after ``the tax'' 
     in paragraph (2)(B)(ii).
       (10) Section 6665(b) is amended--
       (A) in the matter preceding paragraph (1) by striking ``, 
     6654,''; and
       (B) in paragraph (2) by striking ``6654 or''.
       (11) Section 7203 is amended by striking ``section 6654 or 
     6655'' and inserting ``section 6655 or interest required to 
     be paid under section 6641''.
       (e) Clerical Amendments.--
       (1) Chapter 67 is amended by inserting after subchapter D 
     the following:

  ``Subchapter E--Interest on Failure by Individual to Pay Estimated 
                               Income Tax

``Sec. 6641. Interest on failure by individual to pay estimated income 
              tax.''.

       (2) The table of subchapters for chapter 67 is amended by 
     adding at the end the following new items:

``Subchapter D. Notice requirements.
``Subchapter E. Interest on failure by individual to pay estimated 
              income tax.''.

       (3) The table of sections for part I of subchapter A of 
     chapter 68 is amended by striking the item relating to 
     section 6654.
       (f) Effective Date.--The amendments made by this section 
     shall apply to installment payments for taxable years 
     beginning after December 31, 2002.

     SEC. 302. EXCLUSION FROM GROSS INCOME FOR INTEREST ON 
                   OVERPAYMENTS OF INCOME TAX BY INDIVIDUALS.

       (a) In General.--Part III of subchapter B of chapter 1 
     (relating to items specifically excluded from gross income) 
     is amended by inserting after section 139 the following new 
     section:

     ``SEC. 139A. EXCLUSION FROM GROSS INCOME FOR INTEREST ON 
                   OVERPAYMENTS OF INCOME TAX BY INDIVIDUALS.

       ``(a) In General.--In the case of an individual, gross 
     income shall not include interest paid under section 6611 on 
     any overpayment of tax imposed by this subtitle.
       ``(b) Exception.--Subsection (a) shall not apply in the 
     case of a failure to claim items resulting in the overpayment 
     on the original return if the Secretary determines that the 
     principal purpose of such failure is to take advantage of 
     subsection (a).
       ``(c) Special Rule for Determining Modified Adjusted Gross 
     Income.--For purposes of this title, interest not included in 
     gross income under subsection (a) shall not be treated as 
     interest which is exempt from tax for purposes of sections 
     32(i)(2)(B) and 6012(d) or any computation in which interest 
     exempt from tax under this title is added to adjusted gross 
     income.''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 is amended by inserting after 
     the item relating to section 139 the following new item:

``Sec. 139A. Exclusion from gross income for interest on overpayments 
              of income tax by individuals.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to interest received in calendar years beginning 
     after the date of the enactment of this Act.

     SEC. 303. ABATEMENT OF INTEREST.

       (a) Abatement of Interest With Respect to Erroneous Refund 
     Check Without Regard to Size of Refund.--Paragraph (2) of 
     section 6404(e) is amended by striking ``unless--'' and all 
     that follows and inserting ``unless the taxpayer (or a 
     related party) has in any way caused such erroneous 
     refund.''.
       (b) Abatement of Interest to Extent Interest is 
     Attributable to Taxpayer Reliance on Written Statements of 
     the IRS.--Subsection (f) of section 6404 is amended--
       (1) in the subsection heading, by striking ``Penalty or 
     Addition'' and inserting ``Interest, Penalty, or Addition''; 
     and
       (2) in paragraph (1) and in subparagraph (B) of paragraph 
     (2), by striking ``penalty or addition'' and inserting 
     ``interest, penalty, or addition''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to interest accruing on or after the 
     date of the enactment of this Act.

     SEC. 304. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON 
                   POTENTIAL UNDERPAYMENTS.

       (a) In General.--Subchapter A of chapter 67 (relating to 
     interest on underpayments) is amended by adding at the end 
     the following new section:

     ``SEC. 6603. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON 
                   POTENTIAL UNDERPAYMENTS, ETC.

       ``(a) Authority To Make Deposits Other Than As Payment of 
     Tax.--A taxpayer may make a cash deposit with the Secretary 
     which may be used by the Secretary to pay any tax imposed 
     under subtitle A or B or chapter 41, 42, 43, or 44 which has 
     not been assessed at the time of the deposit. Such a deposit 
     shall be made in such manner as the Secretary shall 
     prescribe.
       ``(b) No Interest Imposed.--To the extent that such deposit 
     is used by the Secretary to pay tax, for purposes of section 
     6601 (relating to interest on underpayments), the tax shall 
     be treated as paid when the deposit is made.
       ``(c) Return of Deposit.--Except in a case where the 
     Secretary determines that collection of tax is in jeopardy, 
     the Secretary shall

[[Page H8934]]

     return to the taxpayer any amount of the deposit (to the 
     extent not used for a payment of tax) which the taxpayer 
     requests in writing.
       ``(d) Payment of Interest.--
       ``(1) In general.--For purposes of section 6611 (relating 
     to interest on overpayments), a deposit which is returned to 
     a taxpayer shall be treated as a payment of tax for any 
     period to the extent (and only to the extent) attributable to 
     a disputable tax for such period. Under regulations 
     prescribed by the Secretary, rules similar to the rules of 
     section 6611(b)(2) shall apply.
       ``(2) Disputable tax.--
       ``(A) In general.--For purposes of this section, the term 
     `disputable tax' means the amount of tax specified at the 
     time of the deposit as the taxpayer's reasonable estimate of 
     the maximum amount of any tax attributable to disputable 
     items.
       ``(B) Safe harbor based on 30-day letter.--In the case of a 
     taxpayer who has been issued a 30-day letter, the maximum 
     amount of tax under subparagraph (A) shall not be less than 
     the amount of the proposed deficiency specified in such 
     letter.
       ``(3) Other definitions.--For purposes of paragraph (2)--
       ``(A) Disputable item.--The term `disputable item' means 
     any item of income, gain, loss, deduction, or credit if the 
     taxpayer--
       ``(i) has a reasonable basis for its treatment of such 
     item, and
       ``(ii) reasonably believes that the Secretary also has a 
     reasonable basis for disallowing the taxpayer's treatment of 
     such item.
       ``(B) 30-day letter.--The term `30-day letter' means the 
     first letter of proposed deficiency which allows the taxpayer 
     an opportunity for administrative review in the Internal 
     Revenue Service Office of Appeals.
       ``(4) Rate of interest.--The rate of interest allowable 
     under this subsection shall be the Federal short-term rate 
     determined under section 6621(b), compounded daily.
       ``(e) Use of Deposits.--
       ``(1) Payment of tax.--Except as otherwise provided by the 
     taxpayer, deposits shall be treated as used for the payment 
     of tax in the order deposited.
       ``(2) Returns of deposits.--Deposits shall be treated as 
     returned to the taxpayer on a last-in, first-out basis.''.
       (b) Clerical Amendment.--The table of sections for 
     subchapter A of chapter 67 is amended by adding at the end 
     the following new item:

``Sec. 6603. Deposits made to suspend running of interest on potential 
              underpayments, etc.''.

       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to deposits made after the date of the enactment of 
     this Act.
       (2) Coordination with deposits made under revenue procedure 
     84-58.--In the case of an amount held by the Secretary of the 
     Treasury or his delegate on the date of the enactment of this 
     Act as a deposit in the nature of a cash bond deposit 
     pursuant to Revenue Procedure 84-58, the date that the 
     taxpayer identifies such amount as a deposit made pursuant to 
     section 6603 of the Internal Revenue Code (as added by this 
     Act) shall be treated as the date such amount is deposited 
     for purposes of such section 6603.

     SEC. 305. EXPANSION OF INTEREST NETTING FOR INDIVIDUALS.

       (a) In General.--Subsection (d) of section 6621 (relating 
     to elimination of interest on overlapping periods of tax 
     overpayments and underpayments) is amended by adding at the 
     end the following: ``Solely for purposes of the preceding 
     sentence, section 6611(e) shall not apply in the case of an 
     individual.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to interest accrued after December 31, 2002.

     SEC. 306. WAIVER OF CERTAIN PENALTIES FOR FIRST-TIME 
                   UNINTENTIONAL MINOR ERRORS.

       (a) In General.--Section 6651 (relating to failure to file 
     tax return or to pay tax) is amended by adding at the end the 
     following new subsection:
       ``(i) Treatment of First-Time Unintentional Minor Errors.--
       ``(1) In general.--In the case of a return of tax imposed 
     by subtitle A filed by an individual, the Secretary may waive 
     an addition to tax under subsection (a) if--
       ``(A) the individual has a history of compliance with the 
     requirements of this title,
       ``(B) it is shown that the failure is due to an 
     unintentional minor error,
       ``(C) the penalty would be grossly disproportionate to the 
     action or expense that would have been needed to avoid the 
     error, and imposing the penalty would be against equity and 
     good conscience,
       ``(D) waiving the penalty would promote compliance with the 
     requirements of this title and effective tax administration, 
     and
       ``(E) the taxpayer took all reasonable steps to remedy the 
     error promptly after discovering it.
       ``(2) Exceptions.--Paragraph (1) shall not apply if--
       ``(A) the Secretary has waived any addition to tax under 
     this subsection with respect to any prior failure by such 
     individual,
       ``(B) the failure is a mathematical or clerical error (as 
     defined in section 6213(g)(2)), or
       ``(C) the failure is the lack of a required signature.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on January 1, 2003.

     SEC. 307. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of Penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--
       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 7811 (relating to taxpayer assistance 
     orders),
       ``(II) section 6159 (relating to agreements for payment of 
     tax liability in installments), or
       ``(III) section 7122 (relating to compromises).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission promptly after such notice, the penalty imposed 
     under paragraph (1) shall not apply with respect to such 
     submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:

[[Page H8935]]

       ``(e) Frivolous Submissions, Etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. 308. CLARIFICATION OF APPLICATION OF FEDERAL TAX DEPOSIT 
                   PENALTY.

       Nothing in section 6656 of the Internal Revenue Code of 
     1986 shall be construed to permit the percentage specified in 
     subsection (b)(1)(A)(iii) thereof to apply other than in a 
     case where the failure is for more than 15 days.


    Discharged From the Committee on Energy and Commerce and Passed

  H.R. 5436, to extend the deadline for commencement of construction of 
a hydroelectric project in the State of Oregon.

                               H.R. 5436

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

     SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY 
                   COMMISSION PROJECT.

       (a) In General.--Notwithstanding the time period specified 
     in section 13 of the Federal Power Act (16 U.S.C. 806) that 
     would otherwise apply to the Federal Energy Regulatory 
     Commission project number 11509, the Commission shall, at the 
     request of the licensee for the project, and after reasonable 
     notice, extend the time period during which the licensee is 
     required to commence the construction of the project for 3 
     consecutive 2-year periods.
       (b) Effective Date.--Subsection (a) takes effect on the 
     date of the expiration of the extension issued by the 
     Commission under section 13 of the Federal Power Act (16 
     U.S.C. 806) for Federal Energy Regulatory Commission project 
     number 11509.
       (c) Reinstatement of Expired License.--If the period 
     required for commencement of construction of the project 
     described in subsection (a) has expired prior to the date of 
     the enactment of this act, the commission shall reinstate the 
     license effective as of the date of its expiration and the 
     first extension authorized under subsection (a) shall take 
     effect on the date of such expiration


               Taken From the Speaker's Table and Passed

  S. 2712, to authorize economic and democratic development assistance 
for Afghanistan and to authorize military assistance for Afghanistan 
and certain other foreign countries.

                                S. 2712

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS; DEFINITION.

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

Sec. 1. Short title; table of contents; definition.

TITLE I--ECONOMIC AND DEMOCRATIC DEVELOPMENT ASSISTANCE FOR AFGHANISTAN

Sec. 101. Declaration of policy.
Sec. 102. Purposes of assistance.
Sec. 103. Principles of assistance.
Sec. 104. Authorization of assistance.
Sec. 105. Coordination of assistance.
Sec. 106. Administrative provisions.
Sec. 107. Authorization of appropriations.

TITLE II--MILITARY ASSISTANCE FOR AFGHANISTAN AND CERTAIN OTHER FOREIGN 
               COUNTRIES AND INTERNATIONAL ORGANIZATIONS

Sec. 201. Support for security during transition in Afghanistan.
Sec. 202. Authorization of assistance.
Sec. 203. Eligible foreign countries and eligible international 
              organizations.
Sec. 204. Reimbursement for assistance.
Sec. 205. Authority to provide assistance.
Sec. 206. Promoting secure delivery of humanitarian and other 
              assistance in Afghanistan.
Sec. 207. Sunset.

   TITLE III--ADDITIONAL REQUIREMENTS WITH RESPECT TO ASSISTANCE FOR 
                              AFGHANISTAN

Sec. 301. Prohibition on United States involvement in poppy cultivation 
              or illicit narcotics growth, production, or trafficking.
Sec. 302. Requirement to report by certain United States officials.
Sec. 303. Report by the President.
       (c) Definition.--In this Act, the term ``Government of 
     Afghanistan'' includes--
       (1) the government of any political subdivision of 
     Afghanistan; and
       (2) any agency or instrumentality of the Government of 
     Afghanistan.

TITLE I--ECONOMIC AND DEMOCRATIC DEVELOPMENT ASSISTANCE FOR AFGHANISTAN

     SEC. 101. DECLARATION OF POLICY.

       Congress makes the following declarations:
       (1) The United States and the international community 
     should support efforts that advance the development of 
     democratic civil authorities and institutions in Afghanistan 
     and the establishment of a new broad-based, multi-ethnic, 
     gender-sensitive, and fully representative government in 
     Afghanistan.
       (2) The United States, in particular, should provide its 
     expertise to meet immediate humanitarian and refugee needs, 
     fight the production and flow of illicit narcotics, and aid 
     in the reconstruction of Afghanistan's agriculture, health 
     care, civil service, financial, and educational systems.
       (3) By promoting peace and security in Afghanistan and 
     preventing a return to conflict, the United States and the 
     international community can help ensure that Afghanistan does 
     not again become a source for international terrorism.
       (4) The United States should support the objectives agreed 
     to on December 5, 2001, in Bonn, Germany, regarding the 
     provisional arrangement for Afghanistan as it moves toward 
     the establishment of permanent institutions and, in 
     particular, should work intensively toward ensuring the 
     future neutrality of Afghanistan, establishing the principle 
     that neighboring countries and other countries in the region 
     do not threaten or interfere in one another's sovereignty, 
     territorial integrity, or political independence, including 
     supporting diplomatic initiatives to support this goal.
       (5) The special emergency situation in Afghanistan, which 
     from the perspective of the American people combines 
     security, humanitarian, political, law enforcement, and 
     development imperatives, requires that the President should 
     receive maximum flexibility in designing, coordinating, and 
     administering efforts with respect to assistance for 
     Afghanistan and that a temporary special program of such 
     assistance should be established for this purpose.
       (6) To foster stability and democratization and to 
     effectively eliminate the causes of terrorism, the United 
     States and the international community should also support 
     efforts that advance the development of democratic civil 
     authorities and institutions in the broader Central Asia 
     region.

     SEC. 102. PURPOSES OF ASSISTANCE.

       The purposes of assistance authorized by this title are--
       (1) to help assure the security of the United States and 
     the world by reducing or eliminating the likelihood of 
     violence against United States or allied forces in 
     Afghanistan and to reduce the chance that Afghanistan will 
     again be a source of international terrorism;
       (2) to support the continued efforts of the United States 
     and the international community to address the humanitarian 
     crisis in Afghanistan and among Afghan refugees in 
     neighboring countries;
       (3) to fight the production and flow of illicit narcotics, 
     to control the flow of precursor chemicals used in the 
     production of heroin, and to enhance and bolster the 
     capacities of Afghan governmental authorities to control 
     poppy cultivation and related activities;
       (4) to help achieve a broad-based, multi-ethnic, gender-
     sensitive, and fully representative government in Afghanistan 
     that is freely chosen by the people of Afghanistan and that 
     respects the human rights of all Afghans, particularly women, 
     including authorizing assistance for the rehabilitation and 
     reconstruction of Afghanistan with a particular emphasis on 
     meeting the educational, health, and sustenance needs of 
     women and children to better enable their full participation 
     in Afghan society;
       (5) to support the Government of Afghanistan in its 
     development of the capacity to facilitate, organize, develop, 
     and implement projects and activities that meet the needs of 
     the Afghan people;
       (6) to foster the participation of civil society in the 
     establishment of the new Afghan government in order to 
     achieve a broad-based, multiethnic, gender-sensitive, fully 
     representative government freely chosen by the Afghan people, 
     without prejudice to any decisions which may be freely taken 
     by the Afghan people about the precise form in which their 
     government is to be organized in the future;
       (7) to support the reconstruction of Afghanistan through, 
     among other things, programs that create jobs, facilitate 
     clearance of landmines, and rebuild the agriculture sector, 
     the health care system, and the educational system of 
     Afghanistan; and
       (8) to include specific resources to the Ministry for 
     Women's Affairs of Afghanistan to carry out its 
     responsibilities for legal advocacy, education, vocational 
     training, and women's health programs.

     SEC. 103. PRINCIPLES OF ASSISTANCE.

       The following principles should guide the provision of 
     assistance authorized by this title:
       (1) Terrorism and narcotics control.--Assistance should be 
     designed to reduce the likelihood of harm to United States 
     and other allied forces in Afghanistan and the region, the 
     likelihood of additional acts of international terrorism 
     emanating from Afghanistan, and the cultivation, production,

[[Page H8936]]

     trafficking, and use of illicit narcotics in Afghanistan.
       (2) Role of women.--Assistance should increase the 
     participation of women at the national, regional, and local 
     levels in Afghanistan, wherever feasible, by enhancing the 
     role of women in decisionmaking processes, as well as by 
     providing support for programs that aim to expand economic 
     and educational opportunities and health programs for women 
     and educational and health programs for girls.
       (3) Afghan ownership.--Assistance should build upon Afghan 
     traditions and practices. The strong tradition of community 
     responsibility and self-reliance in Afghanistan should be 
     built upon to increase the capacity of the Afghan people and 
     institutions to participate in the reconstruction of 
     Afghanistan.
       (4) Stability.--Assistance should encourage the restoration 
     of security in Afghanistan, including, among other things, 
     the disarmament, demobilization, and reintegration of 
     combatants, and the establishment of the rule of law, 
     including the establishment of a police force and an 
     effective, independent judiciary.
       (5) Coordination.--Assistance should be part of a larger 
     donor effort for Afghanistan. The magnitude of the 
     devastation--natural and man-made--to institutions and 
     infrastructure make it imperative that there be close 
     coordination and collaboration among donors. The United 
     States should endeavor to assert its leadership to have the 
     efforts of international donors help achieve the purposes 
     established by this title.

     SEC. 104. AUTHORIZATION OF ASSISTANCE.

       (a) In General.--The President is authorized to provide 
     assistance for Afghanistan for the following activities:
       (1) Urgent humanitarian needs.--To assist in meeting the 
     urgent humanitarian needs of the people of Afghanistan, 
     including assistance such as--
       (A) emergency food, shelter, and medical assistance;
       (B) clean drinking water and sanitation;
       (C) preventative health care, including childhood 
     vaccination, therapeutic feeding, maternal child health 
     services, and infectious diseases surveillance and treatment;
       (D) family tracing and reunification services; and
       (E) clearance of landmines.
       (2) Repatriation and resettlement of refugees and 
     internally displaced persons.--To assist refugees and 
     internally displaced persons as they return to their home 
     communities in Afghanistan and to support their reintegration 
     into those communities, including assistance such as--
       (A) assistance identified in paragraph (1);
       (B) assistance to communities, including those in 
     neighboring countries, that have taken in large numbers of 
     refugees in order to rehabilitate or expand social, health, 
     and educational services that may have suffered as a result 
     of the influx of large numbers of refugees;
       (C) assistance to international organizations and host 
     governments in maintaining security by screening refugees to 
     ensure the exclusion of armed combatants, members of foreign 
     terrorist organizations, and other individuals not eligible 
     for economic assistance from the United States; and
       (D) assistance for voluntary refugee repatriation and 
     reintegration inside Afghanistan and continued assistance to 
     those refugees who are unable or unwilling to return, and 
     humanitarian assistance to internally displaced persons, 
     including those persons who need assistance to return to 
     their homes, through the United Nations High Commissioner for 
     Refugees and other organizations charged with providing such 
     assistance.
       (3) Counternarcotics efforts.--(A) To assist in the 
     eradication of poppy cultivation, the disruption of heroin 
     production, and the reduction of the overall supply and 
     demand for illicit narcotics in Afghanistan and the region, 
     with particular emphasis on assistance to--
       (i) eradicate opium poppy, establish crop substitution 
     programs, purchase nonopium products from farmers in opium-
     growing areas, quick-impact public works programs to divert 
     labor from narcotics production, develop projects directed 
     specifically at narcotics production, processing, or 
     trafficking areas to provide incentives to cooperation in 
     narcotics suppression activities, and related programs;
       (ii) establish or provide assistance to one or more 
     entities within the Government of Afghanistan, including the 
     Afghan State High Commission for Drug Control, and to provide 
     training and equipment for the entities, to help enforce 
     counternarcotics laws in Afghanistan and limit illicit 
     narcotics growth, production, and trafficking in Afghanistan;
       (iii) train and provide equipment for customs, police, and 
     other border control entities in Afghanistan and the region 
     relating to illicit narcotics interdiction and relating to 
     precursor chemical controls and interdiction to help disrupt 
     heroin production in Afghanistan and the region;
       (iv) continue the annual opium crop survey and strategic 
     studies on opium crop planting and farming in Afghanistan; 
     and
       (v) reduce demand for illicit narcotics among the people of 
     Afghanistan, including refugees returning to Afghanistan.
       (B) For each of the fiscal years 2002 through 2005, 
     $15,000,000 of the amount made available to carry out this 
     title is authorized to be made available for a contribution 
     to the United Nations Drug Control Program for the purpose of 
     carrying out activities described in clauses (i) through (v) 
     of subparagraph (A). Amounts made available under the 
     preceding sentence are in addition to amounts otherwise 
     available for such purposes.
       (4) Reestablishment of food security, rehabilitation of the 
     agriculture sector, improvement in health conditions, and the 
     reconstruction of basic infrastructure.--To assist in 
     expanding access to markets in Afghanistan, to increase the 
     availability of food in markets in Afghanistan, to 
     rehabilitate the agriculture sector in Afghanistan by 
     creating jobs for former combatants, returning refugees, and 
     internally displaced persons, to improve health conditions, 
     and assist in the rebuilding of basic infrastructure in 
     Afghanistan, including assistance such as--
       (A) rehabilitation of the agricultural infrastructure, 
     including irrigation systems and rural roads;
       (B) extension of credit;
       (C) provision of critical agricultural inputs, such as 
     seeds, tools, and fertilizer, and strengthening of seed 
     multiplication, certification, and distribution systems;
       (D) improvement in the quantity and quality of water 
     available through, among other things, rehabilitation of 
     existing irrigation systems and the development of local 
     capacity to manage irrigation systems;
       (E) livestock rehabilitation through market development and 
     other mechanisms to distribute stocks to replace those stocks 
     lost as a result of conflict or drought;
       (F) mine awareness and demining programs and programs to 
     assist mine victims, war orphans, and widows;
       (G) programs relating to infant and young child feeding, 
     immunizations, vitamin A supplementation, and prevention and 
     treatment of diarrheal diseases and respiratory infections;
       (H) programs to improve maternal and child health and 
     reduce maternal and child mortality;
       (I) programs to improve hygienic and sanitation practices 
     and for the prevention and treatment of infectious diseases, 
     such as tuberculosis and malaria;
       (J) programs to reconstitute the delivery of health care, 
     including the reconstruction of health clinics or other basic 
     health infrastructure, with particular emphasis on health 
     care for children who are orphans;
       (K) programs for housing, rebuilding urban infrastructure, 
     and supporting basic urban services; and
       (L) disarmament, demobilization, and reintegration of armed 
     combatants into society, particularly child soldiers.
       (5) Reestablishment of afghanistan as a viable nation-
     state.--(A) To assist in the development of the capacity of 
     the Government of Afghanistan to meet the needs of the people 
     of Afghanistan through, among other things, support for the 
     development and expansion of democratic and market-based 
     institutions, including assistance such as--
       (i) support for international organizations that provide 
     civil advisers to the Government of Afghanistan;
       (ii) support for an educated citizenry through improved 
     access to basic education, with particular emphasis on basic 
     education for children who are orphans, with particular 
     emphasis on basic education for children;
       (iii) programs to enable the Government of Afghanistan to 
     recruit and train teachers, with special focus on the 
     recruitment and training of female teachers;
       (iv) programs to enable the Government of Afghanistan to 
     develop school curriculum that incorporates relevant 
     information such as landmine awareness, food security and 
     agricultural education, human rights awareness, and civic 
     education;
       (v) support for the activities of the Government of 
     Afghanistan to draft a new constitution, other legal 
     frameworks, and other initiatives to promote the rule of law 
     in Afghanistan;
       (vi) support to increase the transparency, accountability, 
     and participatory nature of governmental institutions, 
     including programs designed to combat corruption and other 
     programs for the promotion of good governance;
       (vii) support for an independent media;
       (viii) programs that support the expanded participation of 
     women and members of all ethnic groups in government at 
     national, regional, and local levels;
       (ix) programs to strengthen civil society organizations 
     that promote human rights and support human rights 
     monitoring;
       (x) support for national, regional, and local elections and 
     political party development;
       (xi) support for the effective administration of justice at 
     the national, regional, and local levels, including the 
     establishment of a responsible and community-based police 
     force; and
       (xii) support for establishment of a central bank and 
     central budgeting authority.
       (B) For each of the fiscal years 2003 through 2005, not 
     less than $10,000,000 of the amount made available to carry 
     out this title should be made available for the purposes of 
     carrying out a traditional Afghan assembly or ``Loya Jirga'' 
     and for support for national, regional, and local elections 
     and political party development under subparagraph (A)(x).
       (6) Market economy.--To support the establishment of a 
     market economy, the establishment of private financial 
     institutions, the adoption of policies to promote foreign

[[Page H8937]]

     direct investment, the development of a basic 
     telecommunication infrastructure, and the development of 
     trade and other commercial links with countries in the region 
     and with the United States, including policies to--
       (A) encourage the return of Afghanistan citizens or 
     nationals living abroad who have marketable and business-
     related skills;
       (B) establish financial institutions, including credit 
     unions, cooperatives, and other entities providing 
     microenterprise credits and other income-generation programs 
     for the poor, with particular emphasis on women;
       (C) facilitate expanded trade with countries in the region;
       (D) promote and foster respect for basic workers' rights 
     and protections against exploitation of child labor; and
       (E) provide financing programs for the reconstruction of 
     Kabul and other major cities in Afghanistan.
       (b) Limitation.--
       (1) In general.--Amounts made available to carry out this 
     title (except amounts made available for assistance under 
     paragraphs (1) through (3) and subparagraphs (F) through (I) 
     of paragraph (4) of subsection (a)) may be provided only if 
     the President first determines and certifies to Congress with 
     respect to the fiscal year involved that substantial progress 
     has been made toward adopting a constitution and establishing 
     a democratically elected government for Afghanistan.
       (2) Waiver.--
       (A) In general.--The President may waive the application of 
     paragraph (1) if the President first determines and certifies 
     to Congress that it is important to the national interest of 
     the United States to do so.
       (B) Contents of certification.--A certification transmitted 
     to Congress under subparagraph (A) shall include a written 
     explanation of the basis for the determination of the 
     President to waive the application of paragraph (1).

     SEC. 105. COORDINATION OF ASSISTANCE.

       (a) In General.--The President is strongly urged to 
     designate, within the Department of State, a coordinator who 
     shall be responsible for--
       (1) designing an overall strategy to advance United States 
     interests in Afghanistan;
       (2) ensuring program and policy coordination among agencies 
     of the United States Government in carrying out the policies 
     set forth in this title;
       (3) pursuing coordination with other countries and 
     international organizations with respect to assistance to 
     Afghanistan;
       (4) ensuring that United States assistance programs for 
     Afghanistan are consistent with this title;
       (5) ensuring proper management, implementation, and 
     oversight by agencies responsible for assistance programs for 
     Afghanistan; and
       (6) resolving policy and program disputes among United 
     States Government agencies with respect to United States 
     assistance for Afghanistan.
       (b) Rank and Status of the Coordinator.--The coordinator 
     designated under subsection (a) shall have the rank and 
     status of ambassador.

     SEC. 106. ADMINISTRATIVE PROVISIONS.

       (a) Applicable Administrative Authorities.--Except to the 
     extent inconsistent with the provisions of this title, the 
     administrative authorities under chapters 1 and 2 of part III 
     of the Foreign Assistance Act of 1961 shall apply to the 
     provision of assistance under this title to the same extent 
     and in the same manner as such authorities apply to the 
     provision of economic assistance under part I of such Act.
       (b) Use of the Expertise of Afghan-Americans.--In providing 
     assistance authorized by this title, the President should--
       (1) maximize the use, to the extent feasible, of the 
     services of Afghan-Americans who have expertise in the areas 
     for which assistance is authorized by this title; and
       (2) in the awarding of contracts and grants to implement 
     activities authorized under this title, encourage the 
     participation of such Afghan-Americans (including 
     organizations employing a significant number of such Afghan-
     Americans).
       (c) Donations of Manufacturing Equipment; Use of Land Grant 
     Colleges and Universities.--In providing assistance 
     authorized by this title, the President, to the maximum 
     extent practicable, should--
       (1) encourage the donation of appropriate excess or 
     obsolete manufacturing and related equipment by United States 
     businesses (including small businesses) for the 
     reconstruction of Afghanistan; and
       (2) utilize research conducted by United States land grant 
     colleges and universities and the technical expertise of 
     professionals within those institutions, particularly in the 
     areas of agriculture and rural development.
       (d) Administrative Expenses.--Not more than 5 percent of 
     the amount made available to a Federal department or agency 
     to carry out this title for a fiscal year may be used by the 
     department or agency for administrative expenses in 
     connection with such assistance.
       (e) Monitoring.--
       (1) Comptroller general.--The Comptroller General shall 
     monitor the provision of assistance under this title.
       (2) Inspector general of usaid.--
       (A) In general.--The Inspector General of the United States 
     Agency for International Development shall conduct audits, 
     inspections, and other activities, as appropriate, associated 
     with the expenditure of the funds to carry out this title.
       (B) Funding.--Not more than $1,500,000 of the amount made 
     available to carry out this title for a fiscal year shall be 
     made available to carry out subparagraph (A).
       (f) Congressional Notification Procedures.--Funds made 
     available to carry out this title may not be obligated until 
     15 days after notification of the proposed obligation of the 
     funds has been provided to the congressional committees 
     specified in section 634A of the Foreign Assistance Act of 
     1961 in accordance with the procedures applicable to 
     reprogramming notifications under that section.

     SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the President to carry out this title $300,000,000 for each 
     of the fiscal years 2002 through 2004, and $250,000,000 for 
     fiscal year 2005. Amounts authorized to be appropriated 
     pursuant to the preceding sentence for fiscal year 2002 are 
     in addition to amounts otherwise available for assistance for 
     Afghanistan.
       (b) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under subsection (a) are--
       (1) authorized to remain available until expended; and
       (2) in addition to funds otherwise available for such 
     purposes, including, with respect to food assistance under 
     section 104(a)(1), funds available under title II of the 
     Agricultural Trade Development and Assistance Act of 1954, 
     the Food for Progress Act of 1985, and section 416(b) of the 
     Agricultural Act of 1949.

TITLE II--MILITARY ASSISTANCE FOR AFGHANISTAN AND CERTAIN OTHER FOREIGN 
               COUNTRIES AND INTERNATIONAL ORGANIZATIONS

     SEC. 201. SUPPORT FOR SECURITY DURING TRANSITION IN 
                   AFGHANISTAN.

       It is the sense of Congress that, during the transition to 
     a broad-based, multi-ethnic, gender-sensitive, fully 
     representative government in Afghanistan, the United States 
     should support--
       (1) the development of a civilian-controlled and centrally-
     governed standing Afghanistan army that respects human rights 
     and prohibits the use of children as soldiers or combatants;
       (2) the creation and training of a professional civilian 
     police force that respects human rights; and
       (3) a multinational security force in Afghanistan.

     SEC. 202. AUTHORIZATION OF ASSISTANCE.

       (a) Types of Assistance.--
       (1) In general.--(A) To the extent that funds are 
     appropriated in any fiscal year for the purposes of this Act, 
     the President may provide, consistent with existing United 
     States statutes, defense articles, defense services, 
     counter-narcotics, crime control and police training 
     services, and other support (including training) to the 
     Government of Afghanistan.
       (B) To the extent that funds are appropriated in any fiscal 
     year for these purposes, the President may provide, 
     consistent with existing United States statutes, defense 
     articles, defense services, and other support (including 
     training) to eligible foreign countries and eligible 
     international organizations.
       (C) The assistance authorized under subparagraph (B) shall 
     be used for directly supporting the activities described in 
     section 203.
       (2) Drawdown authority.--The President is authorized to 
     direct the drawdown of defense articles, defense services, 
     and military education and training for the Government of 
     Afghanistan, eligible foreign countries, and eligible 
     international organizations.
       (3) Authority to acquire by contract or otherwise.--The 
     assistance authorized under paragraphs (1) and (2) and under 
     Public Law 105-338 may include the supply of defense 
     articles, defense services, counter-narcotics, crime control 
     and police training services, other support, and military 
     education and training that are acquired by contract or 
     otherwise.
       (b) Amount of Assistance.--The aggregate value (as defined 
     in section 644(m) of the Foreign Assistance Act of 1961) of 
     assistance provided under subsection (a)(2) may not exceed 
     $300,000,000, provided that such limitation shall be 
     increased by any amounts appropriated pursuant to the 
     authorization of appropriations in section 204(b)(1).

     SEC. 203. ELIGIBLE FOREIGN COUNTRIES AND ELIGIBLE 
                   INTERNATIONAL ORGANIZATIONS.

       (a) Eligibility for Assistance.--
       (1) In general.--Except as provided in paragraph (2), a 
     foreign country or international organization shall be 
     eligible to receive assistance under section 202 if such 
     foreign country or international organization is 
     participating in or directly supporting United States 
     military activities authorized under Public Law 107-40 or is 
     participating in military, peacekeeping, or policing 
     operations in Afghanistan aimed at restoring or maintaining 
     peace and security in that country.
       (2) Exception.--No country the government of which has been 
     determined by the

[[Page H8938]]

     Secretary of State to have repeatedly provided support for 
     acts of international terrorism under section 620A of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2371), section 
     6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. 
     App. 2405(j)(1)), or section 40(d) of the Arms Export Control 
     Act (22 U.S.C. 2780(d)) shall be eligible to receive 
     assistance under section 202.
       (b) Waiver.--The President may waive the application of 
     subsection (a)(2) if the President determines that it is 
     important to the national security interest of the United 
     States to do so.

     SEC. 204. REIMBURSEMENT FOR ASSISTANCE.

       (a) In General.--Defense articles, defense services, and 
     military education and training provided under section 
     202(a)(2) shall be made available without reimbursement to 
     the Department of Defense except to the extent that funds are 
     appropriated pursuant to the authorization of appropriations 
     in subsection (b)(1).
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the President such sums as may be necessary to reimburse the 
     applicable appropriation, fund, or account for the value (as 
     defined in section 644(m) of the Foreign Assistance Act of 
     1961) of defense articles, defense services, or military 
     education and training provided under section 202(a)(2).
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended, and are in 
     addition to amounts otherwise available for the purposes 
     described in this title.

     SEC. 205. ELIGIBLE FOREIGN COUNTRIES AND ELIGIBLE 
                   INTERNATIONAL ORGANIZATIONS.

       (a) Authority.--The President may provide assistance under 
     this title to any eligible foreign country or eligible 
     international organization if the President determines that 
     such assistance is important to the national security 
     interest of the United States and notifies the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Foreign Relations of the Senate of such 
     determination at least 15 days in advance of providing such 
     assistance.
       (b) Notification.--The report described in subsection (a) 
     shall be submitted in classified and unclassified form and 
     shall include information relating to the type and amount of 
     assistance proposed to be provided and the actions that the 
     proposed recipient of such assistance has taken or has 
     committed to take.

     SEC. 206. PROMOTING SECURE DELIVERY OF HUMANITARIAN AND OTHER 
                   ASSISTANCE IN AFGHANISTAN.

       (a) Findings.--Congress finds the following:
       (1) The President has declared his view that the United 
     States should provide significant assistance to Afghanistan 
     so that it never again becomes a haven for terrorism.
       (2) The delivery of humanitarian and reconstruction 
     assistance from the international community is necessary for 
     the safe return of refugees and is critical to the future 
     stability of Afghanistan.
       (3) Enhanced stability in Afghanistan through an improved 
     security environment is critical to the fostering of the 
     Afghan Interim Authority and the traditional Afghan assembly 
     or ``Loya Jirga'' process, which is intended to lead to a 
     permanent national government in Afghanistan, and also is 
     essential for the participation of women in Afghan society.
       (4) Incidents of violence between armed factions and local 
     and regional commanders, and serious abuses of human rights, 
     including attacks on women and ethnic minorities 
     throughout Afghanistan, create an insecure, volatile, and 
     unsafe environment in parts of Afghanistan, displacing 
     thousands of Afghan civilians from their local 
     communities.
       (5) The violence and lawlessness may jeopardize the ``Loya 
     Jirga'' process, undermine efforts to build a strong central 
     government, severely impede reconstruction and the delivery 
     of humanitarian assistance, and increase the likelihood that 
     parts of Afghanistan will once again become safe havens for 
     al-Qaida, Taliban forces, and drug traffickers.
       (6) The lack of security and lawlessness may also 
     perpetuate the need for United States Armed Forces in 
     Afghanistan and threaten the ability of the United States to 
     meet its military objectives.
       (7) The International Security Assistance Force in 
     Afghanistan, currently led by Turkey, and composed of forces 
     from other willing countries without the participation of 
     United States Armed Forces, is deployed only in Kabul and 
     currently does not have the mandate or the capacity to 
     provide security to other parts of Afghanistan.
       (8) Due to the ongoing military campaign in Afghanistan, 
     the United States does not contribute troops to the 
     International Security Assistance Force but has provided 
     support to other countries that are doing so.
       (9) The United States is providing political, financial, 
     training, and other assistance to the Afghan Interim 
     Authority as it begins to build a national army and police 
     force to help provide security throughout Afghanistan, but 
     this effort is not meeting the immediate security needs of 
     Afghanistan.
       (10) Because of these immediate security needs, the Afghan 
     Interim Authority, its Chairman, Hamid Karzai, and many 
     Afghan regional leaders have called for the International 
     Security Assistance Force, which has successfully brought 
     stability to Kabul, to be expanded and deployed throughout 
     the country, and this request has been strongly supported by 
     a wide range of international humanitarian organizations, 
     including the International Committee of the Red Cross, 
     Catholic Relief Services, and Refugees International.
       (11)(A) On January 29, 2002, the President stated that 
     ``[w]e will help the new Afghan government provide the 
     security that is the foundation of peace''.
       (B) On March 25, 2002, the Secretary of Defense stated, 
     with respect to the reconstruction of Afghanistan, that ``the 
     first thing 
     . . . you need for anything else to happen, for hospitals to 
     happen, for roads to happen, for refugees to come back, for 
     people to be fed and humanitarian workers to move on the 
     country . . . [y]ou've got to have security''.
       (b) Statement of Policy.--It should be the policy of the 
     United States to support measures to help meet the immediate 
     security needs of Afghanistan in order to promote safe and 
     effective delivery of humanitarian and other assistance 
     throughout Afghanistan, further the rule of law and civil 
     order, and support the formation of a functioning, 
     representative Afghan national government.
       (c) Preparation of Strategy.--Not later than 45 days after 
     the date of the enactment of this Act, and every six months 
     thereafter, the President shall transmit to the Committee on 
     International Relations and the Committee on Appropriations 
     of the House of Representatives and the Committee on Foreign 
     Relations and the Committee on Appropriations of the Senate a 
     strategy for meeting the immediate and long-term security 
     needs of Afghanistan in order to promote safe and effective 
     delivery of humanitarian and other assistance throughout 
     Afghanistan, further the rule of law and civil order, and 
     support the formation of a functioning, representative Afghan 
     national government.

     SEC. 207. SUNSET.

       The authority of this title shall expire after December 31, 
     2004.

   TITLE III--ADDITIONAL REQUIREMENTS WITH RESPECT TO ASSISTANCE FOR 
                              AFGHANISTAN

     SEC. 301. PROHIBITION ON UNITED STATES INVOLVEMENT IN POPPY 
                   CULTIVATION OR ILLICIT NARCOTICS GROWTH, 
                   PRODUCTION, OR TRAFFICKING.

       No officer or employee of any Federal department or agency 
     who is involved in the provision of assistance under this Act 
     may knowingly encourage or participate in poppy cultivation 
     or illicit narcotics growth, production, or trafficking in 
     Afghanistan. No United States military or civilian aircraft 
     or other United States vehicle that is used with respect to 
     the provision of assistance under this Act may be used to 
     facilitate the distribution of poppies or illicit narcotics 
     in Afghanistan.

     SEC. 302. REQUIREMENT TO REPORT BY CERTAIN UNITED STATES 
                   OFFICIALS.

       (a) Requirement.--An officer or employee of any Federal 
     department or agency involved in the provision of assistance 
     under this Act and having knowledge of facts or circumstances 
     that reasonably indicate that any agency or instrumentality 
     of the Government of Afghanistan, or any other individual 
     (including an individual who exercises civil power by force 
     over a limited region) or organization in Afghanistan, that 
     receives assistance under this Act is involved in poppy 
     cultivation or illicit narcotics growth, production, or 
     trafficking shall, notwithstanding any memorandum of 
     understanding or other agreement to the contrary, report such 
     knowledge or facts to the appropriate official.
       (b) Definition.--In this section, the term ``appropriate 
     official'' means the Attorney General, the Inspector General 
     of the Federal department or agency involved, or the head of 
     such department or agency.

     SEC. 303. REPORT BY THE PRESIDENT.

       Not later than 6 months after the date of the enactment of 
     this Act, and annually thereafter, the President shall 
     transmit to Congress a written report on the progress of the 
     Government of Afghanistan toward the eradication of poppy 
     cultivation, the disruption of heroin production, and the 
     reduction of the overall supply and demand for illicit 
     narcotics in Afghanistan in accordance with the provisions of 
     this Act.


               TAKEN FROM THE SPEAKER'S TABLE AND PASSED

  S. 3044, to authorize the Court Services and Offender Supervision 
Agency of the District of Columbia to provide for the interstate 
supervision of offenders on parole, probation, and supervised release.

                                S. 3044

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Court Services and Offender 
     Supervision Agency Interstate Supervision Act of 2002''.

     SEC. 2. INTERSTATE SUPERVISION.

       Section 11233(b)(2) of the National Capital Revitalization 
     and Self-Government Improvement Act of 1997 (sec. 24-
     133(b)(2), D.C. Official Code) is amended--
       (1) by amending subparagraph (G) to read as follows:
       ``(G) arrange for the supervision of District of Columbia 
     offenders on parole, probation,

[[Page H8939]]

     and supervised release who seek to reside in jurisdictions 
     outside the District of Columbia;'';
       (2) by striking the period at the end of subparagraph (H) 
     and inserting a semicolon; and
       (3) by adding at the end the following new subparagraphs:
       ``(I) arrange for the supervision of offenders on parole, 
     probation, and supervised release from jurisdictions outside 
     the District of Columbia who seek to reside in the District 
     of Columbia; and
       ``(J) have the authority to enter into agreements, 
     including the Interstate Compact for Adult Offender 
     Supervision, with any State or group of States in accordance 
     with the Agency's responsibilities under subparagraphs (G) 
     and (I).''.


               TAKEN FROM THE SPEAKER'S TABLE AND PASSED

  S. 3156, to provide a grant for the construction of a new community 
center in St. Paul, Minnesota, in honor of the late Senator Paul 
Wellstone and his beloved wife, Sheila.

                                S. 3156

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Paul and Sheila Wellstone 
     Center for Community Building Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Senator Paul Wellstone was a tireless advocate for the 
     people of Minnesota, particularly for new immigrants and the 
     economically disadvantaged.
       (2) Paul and Sheila Wellstone loved St. Paul, Minnesota, 
     and often walked the neighborhoods of St. Paul to better 
     understand the needs of the people.
       (3) Neighborhood House was founded in the late 1800's in 
     St. Paul, Minnesota, by the women of Mount Zion Temple as a 
     settlement house to help newly arrived Eastern European 
     Jewish immigrants establish a new life and thrive in their 
     new community.
       (4) Paul and Sheila Wellstone were very committed to 
     Neighborhood House and its mission to improve the lives of 
     its residents.
       (5) When Senator Wellstone became aware that the 
     Neighborhood House Community Center was no longer adequate to 
     meet the needs of the St. Paul community, he suggested that 
     Neighborhood House request Federal funding to construct a new 
     facility.
       (6) As an honor to Paul and Sheila Wellstone, a Federal 
     grant shall be awarded to Neighborhood House to be used for 
     the design and construction of a new community center in St. 
     Paul, Minnesota, to be known as ``The Paul and Sheila 
     Wellstone Center for Community Building''.

     SEC. 3. CONSTRUCTION GRANT.

       (a) Grant Authorized.--The Secretary of Housing and Urban 
     Development shall award a grant to Neighborhood House of St. 
     Paul, Minnesota, to finance the construction of a new 
     community center in St. Paul, Minnesota, to be known as ``The 
     Paul and Sheila Wellstone Center for Community Building''.
       (b) Maximum Amount.--The grant awarded under this section 
     shall be $10,000,000.
       (c) Use of Funds.--Funds awarded under this section shall 
     only be used for the design and construction of the Paul and 
     Sheila Wellstone Center for Community Building.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated $10,000,000 for fiscal year 2003, which 
     shall remain available until expended, to carry out this Act.
  Ms. McCOLLUM. Mr. Speaker, I rise today in support of legislation (S. 
3156) to create a living memorial for Paul and Sheila Wellstone in my 
home district of St. Paul. I am pleased that both the House and Senate 
were able to agree on such a fitting tribute.
  Senator Wellstone was my colleague, but Paul and Sheila were also my 
constituents and my friends. Over the years, Paul and I have walked the 
streets door knocking and listening to the concerns of Minnesotans, 
working together to address the challenges of our communities and 
neighborhoods. Paul and Sheila's enthusiasm for public service and 
their commitment to Minnesota were unmatched.
  Today, I stand with the Minnesota Congressional delegation to pay 
tribute to Paul and Sheila with a true living memorial to their lives 
of serving the people of Minnesota.
  This legislation will authorize the design and construction of a new 
community center in St. Paul at the Neighborhood House. The 
Neighborhood House has played a long-standing role in building 
community values among diverse peoples. Since the 19th century, the 
Neighborhood House has supported ethnic and cultural groups through 
times of transition or need so that they go beyond mere self-
sufficiency, develop critical workforce skills, and become active 
members of our democratic process. From Hmong immigrants to Hispanic 
women facing domestic violence, the Neighborhood House provides all 
those who come an opportunity to improve the quality of their lives.
  The new center to be named after Paul and Sheila Wellstone will host 
youth and family programs, immigrant education programs such as English 
classes, employment services and workforce development. It will provide 
a forum for new citizens to learn and integrate themselves into their 
new society and will strengthen Minnesota's richly diverse community.
  Paul and Sheila Wellstone were advocates for people from all walks of 
life. They were open to all Minnesotans. In the Senate, Paul spoke for 
those who had no voice and he worked hard to empower those who needed 
help the most. This new center embodies the ideals and principles that 
Paul and Sheila lived every day.
  I thank all my colleagues in Congress for honoring Paul and Sheila 
Wellstone in a way that will continue their work and improve the lives 
of Minnesotans for years to come.


 Discharged from the Committee on International Relations and Agreed to

  H. Res. 604, expressing the sense of the House of Representatives 
that the United States should adopt a global strategy to respond to the 
current coffee crisis, and for other purposes.

                              H. Res. 604

       Whereas since 1997 the price of coffee has declined nearly 
     70 percent on the world market and has recently reached its 
     lowest level in a century;
       Whereas the collapse of coffee prices has resulted in a 
     widespread humanitarian crisis for 25,000,000 coffee growers 
     and for more than 50 developing countries where coffee is a 
     critical source of rural employment and foreign exchange 
     earnings;
       Whereas, according to a recent World Bank report, 600,000 
     permanent and temporary coffee workers in Central America 
     have been left unemployed in the last two years;
       Whereas the World Bank has referred to the coffee crisis as 
     ``the silent Mitch'', equating the impact of record-low 
     coffee prices upon Central American countries with the damage 
     done to such countries by Hurricane Mitch in 1998;
       Whereas 6 of 14 immigrants who died in the Arizona desert 
     in May 2001 were small coffee farmers from Veracruz, Mexico;
       Whereas The Washington Post, The New York Times, and The 
     Wall Street Journal report that cultivation of illicit crops 
     such as coca and opium poppy is increasing in traditional 
     coffee-growing countries, such as Colombia and Peru, which 
     have been adversely affected by low international coffee 
     prices;
       Whereas the economies of some of the poorest countries in 
     the world, particularly those in Africa, are highly dependent 
     on trade in coffee;
       Whereas coffee accounts for approximately 80 percent of 
     export revenues for Burundi, 54 percent of export revenues 
     for Ethiopia, 34 percent of export revenues for Uganda, and 
     31 percent of export revenues for Rwanda;
       Whereas, according to the Oxfam International Report 
     ``Mugged: Poverty in your Coffee Cup'', in the Dak Lak 
     province of Vietnam, one of the lowest-cost coffee producers 
     in the world, the price farmers receive for their product 
     covers as little as 60 percent of their costs of production 
     and the income derived by the worst-off farmers in that 
     region is categorized as ``pre-starvation'' income;
       Whereas on February 1, 2002, the International Coffee 
     Organization (ICO) passed Resolution 407;
       Whereas Resolution 407 calls for exporting member countries 
     to observe minimum standards for exportable coffee and 
     provide for the issuance of ICO certificates of origin 
     according to those standards;
       Whereas ICO Resolution 407 calls on importing member 
     countries to ``make their best endeavors to support the 
     objectives of the programme'';
       Whereas both the Specialty Coffee Association of America 
     (SCAA) and the National Coffee Association (NCA) support ICO 
     Resolution 407 and have publicly advocated for the United 
     States to rejoin the International Coffee Organization;
       Whereas on July 24, 2002, the Subcommittee on the Western 
     Hemisphere of the Committee on International Relations of the 
     House of Representatives held a hearing on the coffee crisis 
     in the Western Hemisphere;
       Whereas the United States Agency for International 
     Development (USAID) has already established coffee sector 
     assistance programs for Colombia, Bolivia, the Dominican 
     Republic, East Timor, El Salvador, Ethiopia, Guatemala, 
     Haiti, Honduras, Nicaragua, Panama, Peru, Rwanda, Tanzania, 
     and Uganda; and
       Whereas the report accompanying the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Bill, 
     2003 (House Report 107-663), highlights the coffee price 
     crisis as a global issue and ``urges USAID to focus its rural 
     development and relief programs on regions severely affected 
     by the coffee crisis, especially in Colombia'': Now, 
     therefore, be it
       Resolved, That--
       (1) it is the sense of the House of Representatives that--
       (A) the United States should adopt a global strategy to 
     respond to the coffee crisis with coordinated activities in 
     Latin America, Africa, and Asia to address the short-term 
     humanitarian needs and long-term rural development needs of 
     countries adversely affected by the collapse of coffee 
     prices; and
       (B) the President should explore measures to support and 
     complement multilateral efforts to respond to the global 
     coffee crisis; and
       (2) the House of Representatives urges private sector 
     coffee buyers and roasters to

[[Page H8940]]

     work with the United States Government to find a solution to 
     the crisis which is economically, socially, and 
     environmentally sustainable for all interested parties, and 
     that will address the fundamental problem of oversupply in 
     the world coffee market.


    Discharged From the Committee on Government Reform and Agreed to

  H. Con. Res. 499, honoring George Rogers Clark.

                            H. Con. Res. 499

       Whereas George Rogers Clark was a colonial frontiersman who 
     succeeded in protecting western colonists through diplomacy 
     and advocacy with the colonial government of Virginia;
       Whereas George Rogers Clark doubled the size of colonial 
     America through western exploration and by founding towns in 
     Kentucky;
       Whereas George Rogers Clark was an expert negotiator with 
     American Indian tribes, securing trade and security for 
     western colonists;
       Whereas George Rogers Clark ensured American control of the 
     Northwest Territory by leading a small band of soldiers 
     during the Revolutionary War and successfully capturing 
     British outposts along the Mississippi and Wabash Rivers;
       Whereas George Rogers Clark boldly and courageously led 
     fewer than 200 soldiers to recapture the British Fort 
     Sackville at Vincennes, Indiana, in the winter of 1778-1779;
       Whereas the soldiers marched across Illinois through 
     flooded and frozen territory and reached Vincennes on the 
     evening of February 23, 1779;
       Whereas upon surrounding Fort Sackville, George Rogers 
     Clark was able to give the impression of having a much larger 
     army convincing the British that they were no match for 
     Clark's forces;
       Whereas on the morning of February 25, 1779, the British 
     Lieutenant Governor Henry Hamilton surrendered Fort Sackville 
     to George Rogers Clark and his soldiers;
       Whereas this victory foiled British attempts to drive the 
     Americans out of the region west of the Appalachians and 
     pulled vital resources from the eastern theater during the 
     American Revolution;
       Whereas George Rogers Clark showed great leadership by 
     commanding an expedition northward in 1782 to control unrest 
     caused by British forces in the region;
       Whereas George Rogers Clark continued to offer leadership 
     after the Revolutionary War by serving as an advisor to his 
     community; and
       Whereas the 250th anniversary of George Rogers Clark's 
     birth is November 19, 2002: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That Congress honors George Rogers Clark, whose 
     patriotism and bravery helped to secure American independence 
     and liberty.


    Discharged From the Committee on Government Reform and Agreed to

  H. Res. 582, recognizing and supporting the goals and ideals of 
``National Runaway Prevention Month''.

                              H. Res. 582

       Whereas the prevalence of runaway and homeless situations 
     among youth is staggering, with studies suggesting that 
     between 1,300,000 and 2,800,000 youth live on the streets of 
     the United States each year;
       Whereas running away from home is widespread, with 1 out of 
     every 7 youth in the United States running away from home 
     before the age of 18;
       Whereas runaway youth most often are youth who have been 
     expelled from their homes by their families, physically, 
     sexually, and emotionally abused at home, discharged by State 
     custodial systems without adequate transition plans, 
     separated from their parents through death and divorce, too 
     poor to secure their own basic needs, and ineligible or 
     unable to access adequate medical or mental health resources;
       Whereas effective programs supporting runaway youth and 
     assisting youth and their families in remaining at home 
     succeed because of partnerships created among families, 
     community-based human service agencies, law enforcement 
     agencies, schools, faith-based organizations, and businesses;
       Whereas preventing youth from running away from home and 
     supporting youth in high-risk situations is a family, 
     community, and national priority;
       Whereas the future well-being of the Nation is dependent on 
     the opportunities provided for youth and families to acquire 
     the knowledge, skills, and abilities necessary for youth to 
     develop into safe, healthy, and productive adults;
       Whereas the National Network for Youth and its members 
     advocate on behalf of runaway and homeless youth and provide 
     an array of community-based supports that address their 
     critical needs;
       Whereas the National Runaway Switchboard provides crisis 
     intervention and referrals to reconnect runaway youth to 
     their families and to link youth to local resources that 
     provide positive alternatives to running away from home; and
       Whereas the National Network for Youth and National Runaway 
     Switchboard are co-sponsoring National Runaway Prevention 
     Month, during the month of November, to increase public 
     awareness of the life circumstances of youth in high-risk 
     situations and the need for safe, healthy, and productive 
     alternatives, resources, and supports for youth, families, 
     and communities: Now, therefore, be it
       Resolved, That the House of Representatives recognizes and 
     supports the goals and ideals of ``National Runaway 
     Prevention Month''.


    Discharged From the Committee on Government Reform and Agreed to

  H. Res. 599, congratulating the Anaheim Angels for winning the 2002 
World Series.

                              H. RES. 599

       Whereas on October 27, 2002, the Anaheim Angels won the 
     2002 World Series;
       Whereas the Angels captured their first World Series title 
     in the team's 42-year history;
       Whereas the Anaheim Angels defeated the Central Division 
     champion Minnesota Twins to win the American League 
     Championship Series;
       Whereas the Angels defeated the Eastern Division and 
     defending American League champion New York Yankees to win 
     the American League Division Series;
       Whereas the Angels won a team-record 110 games (including 
     99 games in the regular season);
       Whereas the Angels' team of skilled players, including Troy 
     Glaus, Tim Salmon, Scott Spiezio, David Eckstein, Garret 
     Anderson, Darin Erstad, Adam Kennedy, Bengie Molina, Brad 
     Fullmer, John Lackey, Troy Percival, Francisco Rodriguez, 
     Kevin Appier, Jarrod Washburn, Ben Weber, Brendan Donnelly, 
     Alex Ochoa, Ramon Ortiz, Scott Schoeneweis, Shawn Wooten, 
     Jose Molina, Chone Figgins, Benji Gil, Orlando Palmeiro, and 
     Scot Shields, contributed extraordinary performances during 
     the playoffs and the World Series;
       Whereas third baseman Troy Glaus, who batted .385 with 3 
     home runs and 8 RBI, was named Most Valuable Player of the 
     2002 World Series;
       Whereas Manager Mike Scioscia, who provided strong 
     leadership and solid coaching for a baseball team that was 
     dominant in the regular season and in postseason play, was 
     named American League Manager of the Year;
       Whereas Bill Stoneman, General Manager of the Anaheim 
     Angels, has shown dedication to the Angels franchise, 
     successfully putting together a team of high-quality, winning 
     players;
       Whereas the Anaheim Angels were founded in 1961 by Gene 
     Autry, the famous ``Singing Cowboy'' and star of motion 
     picture and television;
       Whereas on the day he became the first country musician to 
     receive a star on the Hollywood Walk of Fame, Gene Autry 
     said, ``There's only one day that will be bigger than this 
     one for me, and that's when we win the World Series'';
       Whereas Jackie Autry carries on the spirit of her husband 
     as Honorary President of the American League, and continues 
     to be the Angels' most devoted fan;
       Whereas great players and managers, including Nolan Ryan, 
     Gene Mauch, Jim Fregosi, Rod Carew, Don Baylor, and Wally 
     Joyner, have helped the Angels develop a strong baseball 
     tradition in their short history, which includes winning 
     Western Division championships in 1979, 1982, and 1986;
       Whereas the Angels fans supported their team with 
     exceptional enthusiasm and spirit, and introduced the power 
     of the Rally Monkey to a once-disbelieving array of 
     opponents; and
       Whereas the Angels captivated the Nation and inspired the 
     pride of all Americans with their historic performance: Now, 
     therefore, be it
         Resolved, That the House of Representatives--
         (1) congratulates--
         (A) the Anaheim Angels for winning the 2002 Major League 
     Baseball World Series championship and for their outstanding 
     performance during the 2002 Major League Baseball season; and
         (B) all of the eight Major League Baseball teams that 
     played in the postseason;
         (2) recognizes the achievements of the Angels players, 
     coaches, and support staff whose hard work, dedication, and 
     never-say-die spirit proved instrumental in the Angels' 
     first-ever World Series victory;
         (3) commends the San Francisco Giants for a valiant 
     performance during the World Series and for showing their 
     strength and skill as a team; and
         (4) directs the Clerk of the House of Representatives to 
     transmit an enrolled copy of this resolution to--
         (A) Angels players;
         (B) Angels Manager Mike Scioscia;
         (C) Angels General Manager Bill Stoneman;
         (D) The Walt Disney Company; and
         (E) Jackie Autry.


 Discharged from Committee on Education and the Workforce and Agreed to

  H. Res. 612, honoring the life of Dr. Roberto Cruz.

                              H. Res. 612

       Whereas Dr. Cruz received a bachelor's degree in Spanish 
     from the Wichita State University, a masters degree in 
     education from the University of California-Berkeley, and a 
     doctoral degree in policy, planning, and administration from 
     the University of California-Berkeley;
       Whereas Dr. Cruz was appointed by the Secretary of 
     Education to a national advisory council that dealt with the 
     education of language minority students;

[[Page H8941]]

       Whereas Dr. Cruz has received many honors from educational 
     and Hispanic organizations for his support of education for 
     limited English proficient children, including introduction 
     into the Hispanic Hall of Fame and the Hispanic Achievement 
     Award in Education;
       Whereas Dr. Cruz had the foresight and courage to address 
     the lack of educational opportunities for young Hispanic 
     students coming out of high school by founding the National 
     Hispanic University in Oakland, California, in 1981, and 
     serving as its first President;
       Whereas Dr. Cruz developed strong partnerships between the 
     academic and business communities to foster educational 
     opportunities; and
       Whereas on September 4, 2002, Dr. Cruz died after a long 
     and distinguished career: Now, therefore, be it
       Resolved, That the House of Representatives--
       (1) recognizes Dr. Roberto Cruz's professionalism and 
     commitment to education;
       (2) honors Dr. Cruz's life; and
       (3) extends its condolences to the Cruz family and to the 
     faculty, staff, and students of the National Hispanic 
     University on the occasion of his death.


 Discharged From Committee on Energy and Commerce, Amended, and Passed

  S. 1843, to extend certain hydro-electric licenses in the State of 
Alaska.
       Strike all after the enacting clause and insert new text:

     SECTION 1. STAY AND REINSTATEMENT OF FERC LICENSE NO. 11393.

       (a) Upon the request of the licensee for FERC Project No. 
     11393, the Federal Energy Regulatory Commission shall issue 
     an order staying the license.
       (b) Upon the request of the licensee for FERC Project No. 
     11393, but not later than 6 years after the date that the 
     Federal Energy Regulatory Commission receives written notice 
     that construction of the Swan-Tyee transmission line is 
     completed, the Federal Energy Regulatory Commission shall 
     issue an order lifting the stay and make the effective date 
     of the license the date on which the stay is lifted.
       (c) Upon request of the licensee for FERC Project No. 11393 
     and notwithstanding the time period specified in section 13 
     of the Federal Power Act for the commencement of 
     construction, the Commission shall, after reasonable notice 
     and in accordance with the good faith, due diligence, and 
     public interest requirements of that section, extend the time 
     period during which licensee is required to commence the 
     construction of the project for not more than one 2-year time 
     period.


             Passed, as Amended by the Committee Amendment

  H.R. 5504, to provide for the improvement of the safety of child 
restraints in passenger motor vehicles, and for other purposes.

     SECTION 1. SHORT TITLE.

       This Act may be cited as ``Anton's Law''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) It is the policy of the Department of Transportation 
     that all child occupants of motor vehicles, regardless of 
     seating position, be appropriately restrained in order to 
     reduce the incidence of injuries and fatalities resulting 
     from motor vehicle crashes on the streets, roads, and 
     highways.
       (2) Research has shown that very few children between the 
     ages of 4 to 8 years old are in the appropriate restraint for 
     their age when riding in passenger motor vehicles.
       (3) Children who have outgrown their child safety seats 
     should ride in a belt-positioning booster seat until an adult 
     seat belt fits properly.
       (4) Children who were properly restrained when riding in 
     passenger motor vehicles suffered less severe injuries from 
     accidents than children not properly restrained.

     SEC. 3. IMPROVEMENT OF SAFETY OF CHILD RESTRAINTS IN 
                   PASSENGER MOTOR VEHICLES.

       (a) In General.--The Secretary of Transportation (hereafter 
     referred to as the ``Secretary'') shall initiate a rulemaking 
     proceeding to establish performance requirements for child 
     restraints, including booster seats, for the restraint of 
     children weighing more than 50 pounds.
       (b) Elements for Consideration.--In the rulemaking 
     proceeding required by subsection (a), the Secretary shall--
       (1) consider whether to include injury performance criteria 
     for child restraints, including booster seats and other 
     products for use in passenger motor vehicles for the 
     restraint of children weighing more than 50 pounds, under the 
     requirements established in the rulemaking proceeding;
       (2) consider whether to establish performance requirements 
     for seat belt fit when used with booster seats and other belt 
     guidance devices;
       (3) consider whether to address situations where children 
     weighing more than 50 pounds only have access to seating 
     positions with lap belts, such as allowing tethered child 
     restraints for such children; and
       (4) review the definition of the term ``booster seat'' in 
     Federal motor vehicle safety standard No. 213 under section 
     571.213 of title 49, Code of Federal Regulation, to determine 
     if it is sufficiently comprehensive.
       (c) Completion.--The Secretary shall complete the 
     rulemaking proceeding required by subsection (a) not later 
     than 30 months after the date of the enactment of this Act.

     SEC. 4. DEVELOPMENT OF ANTHROPOMORPHIC TEST DEVICE SIMULATING 
                   A 10-YEAR OLD CHILD.

       (a) Development and Evaluation.--Not later than 24 months 
     after the date of the enactment of this Act, the Secretary 
     shall develop and evaluate an anthropomorphic test device 
     that simulates a 10-year old child for use in testing child 
     restraints used in passenger motor vehicles.
       (b) Adoption by Rulemaking.--Within 1 year following the 
     development and evaluation carried out under subsection (a), 
     the Secretary shall initiate a rulemaking proceeding for the 
     adoption of an anthropomorphic test device as developed under 
     subsection (a).

     SEC. 5. REQUIREMENTS FOR INSTALLATION OF LAP AND SHOULDER 
                   BELTS.

       (a) In General.--Not later than 24 months after the date of 
     the enactment of this Act, the Secretary shall complete a 
     rulemaking proceeding to amend Federal motor vehicle safety 
     standard No. 208 under section 571.208 of title 49, Code of 
     Federal Regulations, relating to occupant crash protection, 
     in order to--
       (1) require a lap and shoulder belt assembly for each rear 
     designated seating position in a passenger motor vehicle with 
     a gross vehicle weight rating of 10,000 pounds or less, 
     except that if the Secretary determines that installation of 
     a lap and shoulder belt assembly is not practicable for a 
     particular designated seating position in a particular type 
     of passenger motor vehicle, the Secretary may exclude the 
     designated seating position from the requirement; and
       (2) apply that requirement to passenger motor vehicles in 
     phases in accordance with subsection (b).
       (b) Implementation Schedule.--The requirement prescribed 
     under subsection (a)(1) shall be implemented in phases on a 
     production year basis beginning with the production year that 
     begins not later than 12 months after the end of the year in 
     which the regulations are prescribed under subsection (a). 
     The final rule shall apply to all passenger motor vehicles 
     with a gross vehicle weight rating of 10,000 pounds or less 
     that are manufactured in the third production year of the 
     implementation phase-in under the schedule.

     SEC. 6. EVALUATION OF INTEGRATED CHILD SAFETY SYSTEMS.

       (a) Evaluation.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall initiate an 
     evaluation of integrated or built-in child restraints and 
     booster seats. The evaluation should include--
       (1) the safety of the child restraint and correctness of 
     fit for the child;
       (2) the availability of testing data on the system and 
     vehicle in which the child restraint will be used;
       (3) the compatibility of the child restraint with different 
     makes and models;
       (4) the cost-effectiveness of mass production of the child 
     restraint for consumers;
       (5) the ease of use and relative availability of the child 
     restraint to children riding in motor vehicles; and
       (6) the benefits of built-in seats for improving compliance 
     with State child occupant restraint laws.
       (b) Report.--Not later than 12 months after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate a report of this evaluation.

     SEC. 7. DEFINITIONS.

        As used in this Act, the following definitions apply:
       (1) Child restraint.--The term ``child restraint'' means 
     any product designed to provide restraint to a child 
     (including booster seats and other products used with a lap 
     and shoulder belt assembly) that meets applicable Federal 
     motor vehicle safety standards prescribed by the National 
     Highway Traffic Safety Administration.
       (2) Production year.--The term ``production year'' means 
     the 12-month period between September 1 of a year and August 
     31 of the following year.
       (3) Passenger motor vehicle.--The term ``passenger motor 
     vehicle'' has the meaning given that term in section 
     405(f)(5) of title 23, United States Code.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     $5,000,000 to the Secretary of Transportation for--
       (1) the evaluation required by Section 6 of this Act; and
       (2) research of the nature and causes of injury to children 
     involved in motor vehicle crashes.
       (b) Limitation.--Funds appropriated under subsection (a) 
     shall not be available for the general administrative 
     expenses of the Secretary.
  Mr. TAUZIN. Mr. Speaker, today we are considering an important and 
needed piece of safety legislation, H.R. 5504, the ``Child Safety 
Enhancement Act of 2002.'' This bill, introduced by Rep. Shimkus, aims 
to protect the ``forgotten child''--those children who are too large 
for the child safety seat, but too small for adult seat belts. Make no 
mistake about it, this bill will save the lives of innocent children 
who are too often the victims of automobile accidents.
  This bill will enhance child passenger safety by requiring the 
National Highway Traffic Safety Administration (NHTSA) to draft a final 
rule establishing performance requirements for child restraints, 
including booster seats, for children weighing more than 50 pounds when 
riding in passenger vehicles, and the installation of three-point lap 
and shoulder belts in rear seats.
  The legislation mandates that NHTSA initiate a rulemaking that will 
require the installation of the three-point, lap and shoulder belt

[[Page H8942]]

assembly in certain rear seats within one year after enactment. This 
installation requirement must be phased in over three production years. 
NHTSA may, in accordance with past practice, allow for the earning of 
credits for early compliance or compliance beyond the mandated phase-
in, allowing manufacturers to utilize credits in future model years. 
This section is intended to maximize occupant safety and it should not 
be construed to promote or inhibit liability. This legislation does not 
change the law on liability, and it is not intended to be a sword or a 
shield in litigation.
  Again, I thank Mr. Shimkus for shepherding this good bill through the 
Energy and Commerce Committee, and I strongly support its passage.


    Passed, as Amended by the Committee Amendment as Further Amended

  H.R. 3429, to direct the Secretary of Transportation to make grants 
for security improvements to over-the-road bus operations, and for 
other purposes.

                               H.R. 3429

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Over-the-Road Bus Security 
     and Safety Act of 2001''.

     SEC. 2. EMERGENCY OVER-THE-ROAD BUS SECURITY ASSISTANCE.

       (a) In General.--The Secretary of Transportation may make 
     grants to private operators of over-the-road buses for 
     system-wide security improvements to their operations, 
     including the reimbursement of extraordinary security-related 
     costs determined by the Secretary to have been incurred by 
     such operators since September 11, 2001, and including--
       (1) constructing and modifying garages, facilities, or 
     over-the-road buses to assure their security;
       (2) acquiring, upgrading, installing, or operating 
     equipment, software, or accessorial services for collection, 
     storage, or exchange of passenger and driver information 
     through ticketing systems or otherwise, and information links 
     with government agencies;
       (3) training employees in recognizing and responding to 
     terrorist threats, evacuation procedures, passenger screening 
     procedures, and baggage inspection;
       (4) hiring and training security officers or ``bus 
     marshals'';
       (5) installing cameras and video surveillance equipment on 
     over-the-road buses and at garages and over-the-road bus 
     facilities;
       (6) creating a program for employee identification or 
     background investigation;
       (7) establishing an emergency communications system linked 
     to police and emergency personnel; and
       (8) implementing and operating passenger screening programs 
     at terminals and on over-the-road buses.
       (b) Federal Share.--The Federal share of the cost for which 
     any grant is made under this Act shall be 90 percent.
       (c) Relationship to Other Laws.--Section 5333 of title 49, 
     United States Code, shall apply to a grant made under this 
     Act in the same manner and to the same extent as to a grant 
     made under chapter 53 of such title.

     SEC. 3. PLAN REQUIREMENT.

       The Secretary may not make a grant under this Act to a 
     private operator of over-the-road buses until the operator 
     has first submitted to the Secretary--
       (1) a plan of the operator for making security improvements 
     described in section 2 and the Secretary has approved the 
     plan; and
       (2) such additional information as the Secretary may 
     require to ensure accountability for the obligation and 
     expenditure of amounts made available to the operator under 
     the grant.

     SEC. 4. OVER-THE-ROAD BUS DEFINED.

       In this Act, the term ``over-the-road bus'' means a bus 
     characterized by an elevated passenger deck located over a 
     baggage compartment.

     SEC. 5. FUNDING.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Transportation to 
     carry out this Act $200,000,000 for fiscal year 2002. Such 
     sums shall remain available until expended.
       (b) Imposition and Collection of Passenger Fees.--The 
     Secretary shall impose and collect from passengers of private 
     operators of over-the-road buses in fiscal years 2002, 2003, 
     and 2004 a fee to pay the cost of carrying out this Act. Such 
     fee shall be $0.25 for each bus trip of a passenger of a 
     private operator of an over-the-road bus if the cost of the 
     trip is more than $5. Subject to subsection (c) and 
     notwithstanding section 9701 of title 31, United States Code, 
     and the procedural requirements of section 553 of title 5, 
     United States Code, the Secretary shall impose the fee 
     through the publication of notice of such fee in the Federal 
     Register, and begin collection of the fee within 60 days of 
     the date of enactment of this Act, or as soon as possible 
     thereafter.
       (c) Requirement for Appropriation Before Imposition or 
     Collection of Fees.--The Secretary shall not impose or 
     collect a fee under this section before the date on which all 
     or any portion of the amounts authorized by subsection (a) 
     are appropriated to carry out this Act.
       (d) Fees Payable to Secretary.--All fees imposed and 
     amounts collected under this section are payable to the 
     Secretary.
       (e) Receipts Credited to Account.--Notwithstanding section 
     3302 of title 31, United States Code, all fees collected 
     under this section--
       (1) shall be credited to a separate account established in 
     the Treasury;
       (2) shall be available immediately, without further 
     appropriation, for expenditure but only for making grants 
     under section 2 in fiscal years 2003 and 2004; and
       (3) shall remain available until expended.
       (f) Fees Collected by Bus Operators.--A fee imposed under 
     this section shall be collected by the private operators of 
     over-the-road buses and shall be remitted by such operators 
     to the Secretary on the last day of each calendar month. The 
     amount to be remitted shall be for the calendar month 
     preceding the calendar month in which the remittance is made.
       (g) Information.--The Secretary may require the provision 
     of such information as the Secretary decides is necessary to 
     verify that fees have been collected and remitted at the 
     proper times and in the proper amounts.
       (h) Refunds.--The Secretary may refund to a private 
     operator of an over-the-road bus any fee paid by such 
     operator by mistake or any amount paid by such operator in 
     excess of that required.
  Further amendment:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Max Cleland Over-the-Road 
     Bus Security and Safety Act of 2002''.

     SEC. 2. EMERGENCY OVER-THE-ROAD BUS SECURITY ASSISTANCE.

       (a) In General.--The Secretary of Transportation, acting 
     through the Administrator of the Federal Motor Carrier Safety 
     Administration, shall establish a program for making grants 
     to private operators of over-the-road buses for system-wide 
     security improvements to their operations, including--
       (1) constructing and modifying terminals, garages, 
     facilities, or over-the-road buses to assure their security;
       (2) protecting or isolating the driver;
       (3) acquiring, upgrading, installing, or operating 
     equipment, software, or accessorial services for collection, 
     storage, or exchange of passenger and driver information 
     through ticketing systems or otherwise, and information links 
     with government agencies;
       (4) training employees in recognizing and responding to 
     security threats, evacuation procedures, passenger screening 
     procedures, and baggage inspection;
       (5) hiring and training security officers;
       (6) installing cameras and video surveillance equipment on 
     over-the-road buses and at terminals, garages, and over-the-
     road bus facilities;
       (7) creating a program for employee identification or 
     background investigation;
       (8) establishing an emergency communications system linked 
     to law enforcement and emergency personnel; and
       (9) implementing and operating passenger screening programs 
     at terminals and on over-the-road buses.
       (b) Reimbursement.--A grant under this Act may be used to 
     provide reimbursement to private operators of over-the-road 
     buses for extraordinary security-related costs for 
     improvements described in paragraphs (1) through (9) of 
     subsection (a), determined by the Secretary to have been 
     incurred by such operators since September 11, 2001.
       (c) Federal Share.--The Federal share of the cost for which 
     any grant is made under this Act shall be 90 percent.
       (d) Due Consideration.--In making grants under this Act, 
     the Secretary shall give due consideration to private 
     operators of over-the-road buses that have taken measures to 
     enhance bus transportation security from those in effect 
     before September 11, 2001.
       (e) Grant Requirements.--A grant under this Act shall be 
     subject to all the terms and conditions that a grant is 
     subject to under section 3038(f) of the Transportation Equity 
     Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat. 
     393).

     SEC. 3. PLAN REQUIREMENT.

       (a) In General.--The Secretary may not make a grant under 
     this Act to a private operator of over-the-road buses until 
     the operator has first submitted to the Secretary--
       (1) a plan for making security improvements described in 
     section 2 and the Secretary has approved the plan; and
       (2) such additional information as the Secretary may 
     require to ensure accountability for the obligation and 
     expenditure of amounts made available to the operator under 
     the grant.
       (b) Coordination.--To the extent that an application for a 
     grant under this section proposes security improvements 
     within a specific terminal owned and operated by an entity 
     other than the applicant, the applicant shall demonstrate to 
     the satisfaction of the Secretary that the applicant has 
     coordinated the security improvements for the terminal with 
     that entity.

     SEC. 4. OVER-THE-ROAD BUS DEFINED.

       In this Act, the term ``over-the-road bus'' means a bus 
     characterized by an elevated passenger deck located over a 
     baggage compartment.

     SEC. 5. BUS SECURITY ASSESSMENT.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Transportation 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 preliminary report in accordance with the 
     requirements of this section.

[[Page H8943]]

       (b) Contents of Preliminary Report.--The preliminary report 
     shall include--
       (1) an assessment of the over-the-road bus security grant 
     program;
       (2) an assessment of actions already taken to address 
     identified security issues by both public and private 
     entities and recommendations on whether additional safety and 
     security enforcement actions are needed;
       (3) an assessment of whether additional legislation is 
     needed to provide for the security of Americans traveling on 
     over-the-road buses;
       (4) an assessment of the economic impact that security 
     upgrades of buses and bus facilities may have on the over-
     the-road bus transportation industry and its employees;
       (5) an assessment of ongoing research and the need for 
     additional research on over-the-road bus security, including 
     engine shut-off mechanisms, chemical and biological weapon 
     detection technology, and the feasibility of 
     compartmentalization of the driver; and
       (6) an assessment of industry best practices to enhance 
     security.
       (c) Consultation With Industry, Labor, and Other Groups.--
     In carrying out this section, the Secretary shall consult 
     with over-the-road bus management and labor representatives, 
     public safety and law enforcement officials, and the National 
     Academy of Sciences.

     SEC. 6. FUNDING.

       There is authorized to be appropriated to the Secretary of 
     Transportation to carry out this Act $99,000,000 for fiscal 
     year 2003. Such sums shall remain available until expended.
  Mr. OBERSTAR. Mr. Speaker, I rise in strong support of the amendment 
in the nature of a substitute to H.R. 3429, the Max Cleland Over-the-
Road Bus Security and Safety Act of 2002.
  I am pleased that the House is moving forward with this important 
piece of transportation security legislation. Since reporting the bill 
in June, the Committee has worked aggressively to bring the bill to the 
Floor. Unfortunately, every Committee effort to advance the bill was 
blocked by the Republican Leadership. I am pleased, therefore, with the 
Leadership's recent change of heart, even at this late date, to allow 
the Committee to advance this important piece of legislation.
  The bill has been worked out with our counterparts on the Commerce 
Committee in the Other Body and has the strong support of our side of 
the aisle. We expect both bodies will clear the bill for the 
President's signature.
  Since the September 11 terrorist attacks, over-the-road bus drivers 
and passengers have been the targets of many serious assaults, 
including two assaults killing a total of nine passengers and another 
assault injuring 33 passengers. As recently as September 30, 2002, a 
bus driver was attacked with a knife while transporting 49 passengers 
on a Greyhound bus in California. As a result of the attack, the bus 
went off the road and ended up on its side. Although the driver 
survived, two of the 49 passengers died.
  These violent incidents point to the immediate need to improve 
security measures for intercity buses and bus terminals. On August 2, 
2002, the President signed into law the FY2002 Supplemental 
Appropriations Act (P.L. 107-206). The Act provided $15 million for 
grants and contracts to enhance security for intercity bus operations. 
However, the Department of Transportation (DOT) has not released a 
single penny of these funds. In fact, DOT has not even established an 
application process by which entities can apply for these security 
funds.
  The Administration's failure to make these funds available is 
inexcusable. The recent California attack was the fourth attack on an 
intercity bus driver in the past year. Any further delay in releasing 
these funds risks the lives of thousands of low-income Americans whose 
only mode of transportation may be travel by bus. The Administration 
must take immediate action to make these funds available.
  Mr. Speaker, H.R. 3429, as amended, moves us in the right direction. 
It directs the Secretary of Transportation to establish a program for 
making grants to private operators of over-the-road buses for system-
wide security improvements to their operations, including constructing 
and modifying terminals, garages, or over-the-road buses to assure 
their security; protecting the driver; training employees in 
recognizing security threats; hiring and training security officers; 
installing camera and video surveillance equipment; and establishing an 
emergency communications system linked to law enforcement and emergency 
personnel.
  Since September 11, the intercity bus industry has spent millions on 
enhanced security measures. The funds provided by the bill will 
supplement measures already undertaken by the industry to increase the 
security of the bus system and restore the public's confidence in 
traveling by bus.
  H.R. 3429, as amended, authorizes $99 million in fiscal year 2003 to 
allow the Secretary to make grants to private bus operators for system-
wide security improvements to their operations. The federal share of 
the cost of any grant is 90 percent.
  I urge my colleagues to support the amendment in the nature of a 
substitute to H.R. 3429.
  Mr. YOUNG of Alaska. The purposes of this bill are to establish a 
direct grant program to help improve the system-wide security of over-
the-road bus operations, and to authorize the Secretary of 
Transportation to conduct a security assessment of over-the-road bus 
operations.
  Over-the-road buses, or motorcoaches, operate in both commuter and 
intercity operations. The motorcoach industry, which includes regularly 
scheduled point-to-point service and chartered tour operations, carried 
more than 774 million passengers in the United States in 2000. 
According to the Bureau of Transportation Statistics, the intercity bus 
transportation industry serves 5000 locations nationwide, many of which 
are rural communities that might not have other modes of intercity 
transportation available to the public. Of the 4,000 bus companies 
operating in this country, 90 percent operate fewer than 25 buses.
  There are worrisome precedents for security breaches on buses. For 
example, in the Middle East, terrorists have used buses to cause mass 
casualties in a number of crowded cities. In the United States, 
Greyhound drivers and passengers were the targets of a least 4 serious 
assaults last year, one killing 7 passengers and another injuring 33 
passengers, and at least 3 other serious security breaches. No other 
major United States transportation mode had as many incidents of 
passenger attacks during that period. These incidents occurred in 
states throughout the country, including Tennessee, Arizona, Utah, 
Oklahoma, Pennsylvania, and Vermont.
  In response to the incidents, bus companies have taken a number of 
steps to enhance security. These steps include: performing random 
screening of passengers and baggage at selected terminals; requiring 
ticket identification; providing cell phones to drivers as an interim 
emergency communications system; increasing security personnel in 
terminals; giving the driver the right to limit access to the first row 
of seats; and establishing information and communications systems to 
aid and coordinate with law enforcement.
  In the 2002 Supplemental Appropriations Act for Further Recovery From 
and Response to Terrorist Attacks on the United States (P.L. 107-206), 
$15 million was provided of bus security improvements intended to 
address the same type of security-related issues as identified in this 
bill. This appropriation represents the first installment of funds for 
over-the-road bus security and the Mangers encourage the Secretary to 
move forward expeditiously to utilize these funds for their intended 
purpose.
  Section-by-section Analysis
  Section 1. Short title.
  This Act may be cited as the ``Max Cleland Over-the-Road Bus Security 
and Safety Act of 2002''.
  Section 2. Emergency over-the-road bus security assistance.
  This section directs the Secretary of Transportation, acting through 
the Administrator for the Federal Motor Carrier Safety Administration, 
to establish a program for making grants to private operators of over-
the-road buses for system-wide security improvements to their 
operations. Improvements eligible for grants include: constructing and 
modifying terminals, garages, facilities and over-the-road buses to 
assure their security; improvements to protect or isolate the driver; 
upgrading, purchasing or installing manifest or ticketing systems; 
hiring security officers; training employees; installing surveillance 
equipment; conducting employee background checks; establishing 
emergency communications systems; and implementing passenger screening 
programs. Operators may also receive grants for eligible projects 
providing reimbursement for extraordinary security-related costs 
incurred since September 11, 2001. In making grants, the Secretary is 
directed to give due consideration to operators of over-the-road buses 
that have already taken measures to enhance security since September 
11, 2001.
  This section also makes clear that grants under this bill will adhere 
to the existing requirements for over-the-road bus operators under 
section 3038(f) of the Transportation Equity Act for the 21st Century.
  The federal share will be 90 percent of the cost of the improvement 
for which any grant is made.
  Section 3. Plan requirement.
  This section requires that the Secretary approve a plan for security 
improvements submitted by an over-the-road bus operator before a grant 
may be made. The plan submitted by the operator must comply with the 
uses described in Section 2 and include any additional information the 
Secretary deems necessary to ensure the accountability for amounts made 
available through the grant program.
  This section also provides that an applicant for a grant for 
improvements at a terminal owned and operated by an entity other than 
the applicant must demonstrate to the Secretary that the improvements 
have been coordinated with the terminal's owner or operator.

[[Page H8944]]

  Section 4. Over-the-road bus defined.
  This section defines an over-the-road bus as a bus characterized by 
an elevated passenger deck located over a baggage compartment, 
consistent with the definition used in the Transportation Equity Act 
for the 21st Century (P.L. 105-178).
  Section 5. Bus security assessment.
  This section directs the Secretary to submit a preliminary report 
within 180 days of enactment to the Senate Committee on Commerce, 
Science and Transportation and the House Committee on Transportation 
and Infrastructure. The report will include assessments of: the grant 
program established by the bill; actions taken by public and private 
entities to address security issues and recommendations on whether 
additional actions; including legislation are needed; the economic 
impact of security upgrades on the over-the-road bus industry and its 
employees; ongoing and needed research on over-the-road bus security; 
and industry best practices to enhance security. In conducting the 
assessments, the Secretary is to consult with over-the-road bus 
management and labor representatives, public safety and law enforcement 
officials, and the National Academy of Sciences.
  Section 6. Funding.
  This section authorizes $99 million for the grant program for fiscal 
year 2003 and provides that such sums shall remain available until 
expended.
  Mr. YOUNG of Alaska. Mr. Speaker, I move to call up H.R. 3429, as 
amended, from the desk, and pass the bill by unanimous consent.
  Mr. Speaker, the Max Cleland Over-the-Road Bus Security and Safety 
Act, H.R. 3429, will enhance the security of the nation's intercity bus 
network by directing the Secretary of Transportation to establish a 
grant program for security improvements to over-the-road operations.
  The bipartisan legislation was introduced last December, and was 
marked up by the full Transportation and Infrastructure Committee on 
June 13, 2002. The amended bill before you reflects an agreement 
between the House Transportation and Infrastructure Committee and the 
Senate Commerce Committee, which reported a companion bill, S. 1739. 
The Senate bill was introduced and championed by Senator Max Cleland, 
and the bill has been named for him to commemorate his work on this 
legislation.
  Since last year's terrorist attacks on New York and Washington, D.C., 
the Transportation Committee has re-examined the security of all modes 
of transportation. The intercity bus industry transports more than 750 
million passengers a year, and is an important element of a intermodal 
national transportation system.
  Unfortunately, recent terrorist bombings on foreign buses and bus 
stations, as well as attacks against bus drivers here in the U.S., 
demonstrate the need for strengthened bus security.
  $15 million has already been appropriated for improvements to bus 
security in the fiscal year 2002 emergency supplemental, and another 
$15 million is pending for fiscal year 2003. It is imperative that we 
authorize this grant program now so the Secretary of Transportation 
will have direction from Congress on how these funds shall be spent.
  H.R. 3429 authorizes a total of $99 million for fiscal year 2003 from 
the general fund for discretionary grants to private operators of 
intercity bus service for a number of security-related costs, 
including: constructing or modifying terminals, bus garages or other 
facilities to assure security; protecting or isolating the bus driver; 
upgrading, purchasing, or installing passenger ticketing systems; 
employee training; hiring security officers; installing cameras and 
video surveillance equipment on buses and in facilities; creating 
employee identification and background check programs; establishing 
emergency communications systems; and implementing passenger screening 
programs at terminals and on buses.
  These grants can be made for new security improvements, or can be 
used to reimburse extraordinary security costs incurred in the wake of 
September 11, 2001.
  There are number of changes from the House Committee-reported bill, 
which can be summarized as follows:
  1. The Secretary is directed to establish the grant program through 
the Federal Motor Carrier Safety Administration, the regulatory agency 
that is responsible for over-the-road bus safety.
  2. The total authorization period is one year, rather than three 
years, and the total amount authorized is $99 million instead of $200 
million. This program will be reauthorized in the larger context of TEA 
21 reauthorization next year.
  3. A new section requested by the Senate is included that requires an 
assessment of the current status of security issues as they relate to 
the over-the-road bus industry. This report is due in six months, and 
will be helpful to the authorizing Committees as we work on TEA 21 
reauthorization.
  Mr. Speaker, thank you for allowing this bill to move through in 
these last days of the 107th Congress.


    Passed, as Amended by the Committee Amendment as Further Amended

  H.R. 2458, to enhance the management and promotion of electronic 
Government services and processes by establishing a Federal Chief 
Information Officer within the Office of Management and Budget, and by 
establishing a broad framework of measures that require using Internet-
based information technology to enhance citizen access to Government 
information and services, and for other purposes.

                               H.R. 2458

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``E-
     Government 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. Findings and purposes.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

Sec. 101. Management and promotion of electronic government services.
Sec. 102. Conforming amendments.

  TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

Sec. 201. Definitions.
Sec. 202. Federal agency responsibilities.
Sec. 203. Compatibility of executive agency methods for use and 
              acceptance of electronic signatures.
Sec. 204. Federal Internet portal.
Sec. 205. Federal courts.
Sec. 206. Regulatory agencies.
Sec. 207. Accessibility, usability, and preservation of government 
              information.
Sec. 208. Privacy provisions.
Sec. 209. Federal information technology workforce development.
Sec. 210. Share-in-savings initiatives.
Sec. 211. Authorization for acquisition of information technology by 
              State and local governments through Federal supply 
              schedules.
Sec. 212. Integrated reporting study and pilot projects.
Sec. 213. Community technology centers.
Sec. 214. Enhancing crisis management through advanced information 
              technology.
Sec. 215. Disparities in access to the Internet.

                    TITLE III--INFORMATION SECURITY

Sec. 301. Information security.
Sec. 302. Management of information technology.
Sec. 303. National Institute of Standards and Technology.
Sec. 304. Information Security and Privacy Advisory Board.
Sec. 305. Technical and conforming amendments.
Sec. 306. Construction.

     TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES

Sec. 401. Authorization of appropriations.
Sec. 402. Effective dates.

TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Coordination and oversight of policies.
Sec. 504. Effect on other laws.

            Subtitle A--Confidential Information Protection

Sec. 511. Findings and purposes.
Sec. 512. Limitations on use and disclosure of data and information.
Sec. 513. Fines and penalties.

                   Subtitle B--Statistical Efficiency

Sec. 521. Findings and purposes.
Sec. 522. Designation of statistical agencies.
Sec. 523. Responsibilities of designated statistical agencies.
Sec. 524. Sharing of business data among designated statistical 
              agencies.
Sec. 525. Limitations on use of business data provided by designated 
              statistical agencies.
Sec. 526. Conforming amendments.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The use of computers and the Internet is rapidly 
     transforming societal interactions and the relationships 
     among citizens, private businesses, and the Government.
       (2) The Federal Government has had uneven success in 
     applying advances in information technology to enhance 
     governmental functions and services, achieve more efficient 
     performance, increase access to Government information, and 
     increase citizen participation in Government.
       (3) Most Internet-based services of the Federal Government 
     are developed and presented separately, according to the 
     jurisdictional boundaries of an individual department or 
     agency, rather than being integrated cooperatively according 
     to function or topic.
       (4) Internet-based Government services involving 
     interagency cooperation are especially difficult to develop 
     and promote, in part because of a lack of sufficient funding 
     mechanisms to support such interagency cooperation.
       (5) Electronic Government has its impact through improved 
     Government performance and outcomes within and across 
     agencies.
       (6) Electronic Government is a critical element in the 
     management of Government, to be implemented as part of a 
     management framework

[[Page H8945]]

     that also addresses finance, procurement, human capital, and 
     other challenges to improve the performance of Government.
       (7) To take full advantage of the improved Government 
     performance that can be achieved through the use of Internet-
     based technology requires strong leadership, better 
     organization, improved interagency collaboration, and more 
     focused oversight of agency compliance with statutes related 
     to information resource management.
       (b) Purposes.--The purposes of this Act are the following:
       (1) To provide effective leadership of Federal Government 
     efforts to develop and promote electronic Government services 
     and processes by establishing an Administrator of a new 
     Office of Electronic Government within the Office of 
     Management and Budget.
       (2) To promote use of the Internet and other information 
     technologies to provide increased opportunities for citizen 
     participation in Government.
       (3) To promote interagency collaboration in providing 
     electronic Government services, where this collaboration 
     would improve the service to citizens by integrating related 
     functions, and in the use of internal electronic Government 
     processes, where this collaboration would improve the 
     efficiency and effectiveness of the processes.
       (4) To improve the ability of the Government to achieve 
     agency missions and program performance goals.
       (5) To promote the use of the Internet and emerging 
     technologies within and across Government agencies to provide 
     citizen-centric Government information and services.
       (6) To reduce costs and burdens for businesses and other 
     Government entities.
       (7) To promote better informed decisionmaking by policy 
     makers.
       (8) To promote access to high quality Government 
     information and services across multiple channels.
       (9) To make the Federal Government more transparent and 
     accountable.
       (10) To transform agency operations by utilizing, where 
     appropriate, best practices from public and private sector 
     organizations.
       (11) To provide enhanced access to Government information 
     and services in a manner consistent with laws regarding 
     protection of personal privacy, national security, records 
     retention, access for persons with disabilities, and other 
     relevant laws.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

     SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                   SERVICES.

       (a) In General.--Title 44, United States Code, is amended 
     by inserting after chapter 35 the following:

    ``CHAPTER 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

``Sec.
``3601. Definitions.
``3602. Office of Electronic Government.
``3603. Chief Information Officers Council.
``3604. E-Government Fund.
``3605. Program to encourage innovative solutions to enhance electronic 
              Government services and processes.
``3606. E-Government report.

     ``Sec. 3601. Definitions

       ``In this chapter, the definitions under section 3502 shall 
     apply, and the term--
       ``(1) `Administrator' means the Administrator of the Office 
     of Electronic Government established under section 3602;
       ``(2) `Council' means the Chief Information Officers 
     Council established under section 3603;
       ``(3) `electronic Government' means the use by the 
     Government of web-based Internet applications and other 
     information technologies, combined with processes that 
     implement these technologies, to--
       ``(A) enhance the access to and delivery of Government 
     information and services to the public, other agencies, and 
     other Government entities; or
       ``(B) bring about improvements in Government operations 
     that may include effectiveness, efficiency, service quality, 
     or transformation;
       ``(4) `enterprise architecture'--
       ``(A) means--
       ``(i) a strategic information asset base, which defines the 
     mission;
       ``(ii) the information necessary to perform the mission;
       ``(iii) the technologies necessary to perform the mission; 
     and
       ``(iv) the transitional processes for implementing new 
     technologies in response to changing mission needs; and
       ``(B) includes--
       ``(i) a baseline architecture;
       ``(ii) a target architecture; and
       ``(iii) a sequencing plan;
       ``(5) `Fund' means the E-Government Fund established under 
     section 3604;
       ``(6) `interoperability' means the ability of different 
     operating and software systems, applications, and services to 
     communicate and exchange data in an accurate, effective, and 
     consistent manner;
       ``(7) `integrated service delivery' means the provision of 
     Internet-based Federal Government information or services 
     integrated according to function or topic rather than 
     separated according to the boundaries of agency jurisdiction; 
     and
       ``(8) `tribal government' means the governing body of any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Alaska Native village or regional or 
     village corporation as defined in or established pursuant to 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.

     ``Sec. 3602. Office of Electronic Government

       ``(a) There is established in the Office of Management and 
     Budget an Office of Electronic Government.
       ``(b) There shall be at the head of the Office an 
     Administrator who shall be appointed by the President.
       ``(c) The Administrator shall assist the Director in 
     carrying out--
       ``(1) all functions under this chapter;
       ``(2) all of the functions assigned to the Director under 
     title II of the E-Government Act of 2002; and
       ``(3) other electronic government initiatives, consistent 
     with other statutes.
       ``(d) The Administrator shall assist the Director and the 
     Deputy Director for Management and work with the 
     Administrator of the Office of Information and Regulatory 
     Affairs in setting strategic direction for implementing 
     electronic Government, under relevant statutes, including--
       ``(1) chapter 35;
       ``(2) subtitle III of title 40, United States Code;
       ``(3) section 552a of title 5 (commonly referred to as the 
     `Privacy Act');
       ``(4) the Government Paperwork Elimination Act (44 U.S.C. 
     3504 note); and
       ``(5) the Federal Information Security Management Act of 
     2002.
       ``(e) The Administrator shall work with the Administrator 
     of the Office of Information and Regulatory Affairs and with 
     other offices within the Office of Management and Budget to 
     oversee implementation of electronic Government under this 
     chapter, chapter 35, the E-Government Act of 2002, and other 
     relevant statutes, in a manner consistent with law, relating 
     to--
       ``(1) capital planning and investment control for 
     information technology;
       ``(2) the development of enterprise architectures;
       ``(3) information security;
       ``(4) privacy;
       ``(5) access to, dissemination of, and preservation of 
     Government information;
       ``(6) accessibility of information technology for persons 
     with disabilities; and
       ``(7) other areas of electronic Government.
       ``(f) Subject to requirements of this chapter, the 
     Administrator shall assist the Director by performing 
     electronic Government functions as follows:
       ``(1) Advise the Director on the resources required to 
     develop and effectively administer electronic Government 
     initiatives.
       ``(2) Recommend to the Director changes relating to 
     Governmentwide strategies and priorities for electronic 
     Government.
       ``(3) Provide overall leadership and direction to the 
     executive branch on electronic Government.
       ``(4) Promote innovative uses of information technology by 
     agencies, particularly initiatives involving multiagency 
     collaboration, through support of pilot projects, research, 
     experimentation, and the use of innovative technologies.
       ``(5) Oversee the distribution of funds from, and ensure 
     appropriate administration and coordination of, the E-
     Government Fund established under section 3604.
       ``(6) Coordinate with the Administrator of General Services 
     regarding programs undertaken by the General Services 
     Administration to promote electronic government and the 
     efficient use of information technologies by agencies.
       ``(7) Lead the activities of the Chief Information Officers 
     Council established under section 3603 on behalf of the 
     Deputy Director for Management, who shall chair the council.
       ``(8) Assist the Director in establishing policies which 
     shall set the framework for information technology standards 
     for the Federal Government under section 11331 of title 40, 
     to be developed by the National Institute of Standards and 
     Technology and promulgated by the Secretary of Commerce, 
     taking into account, if appropriate, recommendations of the 
     Chief Information Officers Council, experts, and interested 
     parties from the private and nonprofit sectors and State, 
     local, and tribal governments, and maximizing the use of 
     commercial standards as appropriate, including the following:
       ``(A) Standards and guidelines for interconnectivity and 
     interoperability as described under section 3504.
       ``(B) Consistent with the process under section 207(d) of 
     the E-Government Act of 2002, standards and guidelines for 
     categorizing Federal Government electronic information to 
     enable efficient use of technologies, such as through the use 
     of extensible markup language.
       ``(C) Standards and guidelines for Federal Government 
     computer system efficiency and security.
       ``(9) Sponsor ongoing dialogue that--
       ``(A) shall be conducted among Federal, State, local, and 
     tribal government leaders on electronic Government in the 
     executive, legislative, and judicial branches, as well as 
     leaders in the private and nonprofit sectors, to encourage 
     collaboration and enhance understanding of best practices and 
     innovative approaches in acquiring, using, and managing 
     information resources;
       ``(B) is intended to improve the performance of governments 
     in collaborating on the use of information technology to 
     improve the delivery of Government information and services; 
     and
       ``(C) may include--
       ``(i) development of innovative models--

       ``(I) for electronic Government management and Government 
     information technology contracts; and
       ``(II) that may be developed through focused discussions or 
     using separately sponsored research;

       ``(ii) identification of opportunities for public-private 
     collaboration in using Internet-based

[[Page H8946]]

     technology to increase the efficiency of Government-to-
     business transactions;
       ``(iii) identification of mechanisms for providing 
     incentives to program managers and other Government employees 
     to develop and implement innovative uses of information 
     technologies; and
       ``(iv) identification of opportunities for public, private, 
     and intergovernmental collaboration in addressing the 
     disparities in access to the Internet and information 
     technology.
       ``(10) Sponsor activities to engage the general public in 
     the development and implementation of policies and programs, 
     particularly activities aimed at fulfilling the goal of using 
     the most effective citizen-centered strategies and those 
     activities which engage multiple agencies providing similar 
     or related information and services.
       ``(11) Oversee the work of the General Services 
     Administration and other agencies in developing the 
     integrated Internet-based system under section 204 of the E-
     Government Act of 2002.
       ``(12) Coordinate with the Administrator for Federal 
     Procurement Policy to ensure effective implementation of 
     electronic procurement initiatives.
       ``(13) Assist Federal agencies, including the General 
     Services Administration, the Department of Justice, and the 
     United States Access Board in--
       ``(A) implementing accessibility standards under section 
     508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); and
       ``(B) ensuring compliance with those standards through the 
     budget review process and other means.
       ``(14) Oversee the development of enterprise architectures 
     within and across agencies.
       ``(15) Assist the Director and the Deputy Director for 
     Management in overseeing agency efforts to ensure that 
     electronic Government activities incorporate adequate, risk-
     based, and cost-effective security compatible with business 
     processes.
       ``(16) Administer the Office of Electronic Government 
     established under this section.
       ``(17) Assist the Director in preparing the E-Government 
     report established under section 3606.
       ``(g) The Director shall ensure that the Office of 
     Management and Budget, including the Office of Electronic 
     Government, the Office of Information and Regulatory Affairs, 
     and other relevant offices, have adequate staff and resources 
     to properly fulfill all functions under the E-Government Act 
     of 2002.

     ``Sec. 3603. Chief Information Officers Council

       ``(a) There is established in the executive branch a Chief 
     Information Officers Council.
       ``(b) The members of the Council shall be as follows:
       ``(1) The Deputy Director for Management of the Office of 
     Management and Budget, who shall act as chairperson of the 
     Council.
       ``(2) The Administrator of the Office of Electronic 
     Government.
       ``(3) The Administrator of the Office of Information and 
     Regulatory Affairs.
       ``(4) The chief information officer of each agency 
     described under section 901(b) of title 31.
       ``(5) The chief information officer of the Central 
     Intelligence Agency.
       ``(6) The chief information officer of the Department of 
     the Army, the Department of the Navy, and the Department of 
     the Air Force, if chief information officers have been 
     designated for such departments under section 3506(a)(2)(B).
       ``(7) Any other officer or employee of the United States 
     designated by the chairperson.
       ``(c)(1) The Administrator of the Office of Electronic 
     Government shall lead the activities of the Council on behalf 
     of the Deputy Director for Management.
       ``(2)(A) The Vice Chairman of the Council shall be selected 
     by the Council from among its members.
       ``(B) The Vice Chairman shall serve a 1-year term, and may 
     serve multiple terms.
       ``(3) The Administrator of General Services shall provide 
     administrative and other support for the Council.
       ``(d) The Council is designated the principal interagency 
     forum for improving agency practices related to the design, 
     acquisition, development, modernization, use, operation, 
     sharing, and performance of Federal Government information 
     resources.
       ``(e) In performing its duties, the Council shall consult 
     regularly with representatives of State, local, and tribal 
     governments.
       ``(f) The Council shall perform functions that include the 
     following:
       ``(1) Develop recommendations for the Director on 
     Government information resources management policies and 
     requirements.
       ``(2) Share experiences, ideas, best practices, and 
     innovative approaches related to information resources 
     management.
       ``(3) Assist the Administrator in the identification, 
     development, and coordination of multiagency projects and 
     other innovative initiatives to improve Government 
     performance through the use of information technology.
       ``(4) Promote the development and use of common performance 
     measures for agency information resources management under 
     this chapter and title II of the E-Government Act of 2002.
       ``(5) Work as appropriate with the National Institute of 
     Standards and Technology and the Administrator to develop 
     recommendations on information technology standards developed 
     under section 20 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278g-3) and promulgated under 
     section 11331 of title 40, and maximize the use of commercial 
     standards as appropriate, including the following:
       ``(A) Standards and guidelines for interconnectivity and 
     interoperability as described under section 3504.
       ``(B) Consistent with the process under section 207(d) of 
     the E-Government Act of 2002, standards and guidelines for 
     categorizing Federal Government electronic information to 
     enable efficient use of technologies, such as through the use 
     of extensible markup language.
       ``(C) Standards and guidelines for Federal Government 
     computer system efficiency and security.
       ``(6) Work with the Office of Personnel Management to 
     assess and address the hiring, training, classification, and 
     professional development needs of the Government related to 
     information resources management.
       ``(7) Work with the Archivist of the United States to 
     assess how the Federal Records Act can be addressed 
     effectively by Federal information resources management 
     activities.

     ``Sec. 3604. E-Government Fund

       ``(a)(1) There is established in the Treasury of the United 
     States the E-Government Fund.
       ``(2) The Fund shall be administered by the Administrator 
     of the General Services Administration to support projects 
     approved by the Director, assisted by the Administrator of 
     the Office of Electronic Government, that enable the Federal 
     Government to expand its ability, through the development and 
     implementation of innovative uses of the Internet or other 
     electronic methods, to conduct activities electronically.
       ``(3) Projects under this subsection may include efforts 
     to--
       ``(A) make Federal Government information and services more 
     readily available to members of the public (including 
     individuals, businesses, grantees, and State and local 
     governments);
       ``(B) make it easier for the public to apply for benefits, 
     receive services, pursue business opportunities, submit 
     information, and otherwise conduct transactions with the 
     Federal Government; and
       ``(C) enable Federal agencies to take advantage of 
     information technology in sharing information and conducting 
     transactions with each other and with State and local 
     governments.
       ``(b)(1) The Administrator shall--
       ``(A) establish procedures for accepting and reviewing 
     proposals for funding;
       ``(B) consult with interagency councils, including the 
     Chief Information Officers Council, the Chief Financial 
     Officers Council, and other interagency management councils, 
     in establishing procedures and reviewing proposals; and
       ``(C) assist the Director in coordinating resources that 
     agencies receive from the Fund with other resources available 
     to agencies for similar purposes.
       ``(2) When reviewing proposals and managing the Fund, the 
     Administrator shall observe and incorporate the following 
     procedures:
       ``(A) A project requiring substantial involvement or 
     funding from an agency shall be approved by a senior official 
     with agencywide authority on behalf of the head of the 
     agency, who shall report directly to the head of the agency.
       ``(B) Projects shall adhere to fundamental capital planning 
     and investment control processes.
       ``(C) Agencies shall identify in their proposals resource 
     commitments from the agencies involved and how these 
     resources would be coordinated with support from the Fund, 
     and include plans for potential continuation of projects 
     after all funds made available from the Fund are expended.
       ``(D) After considering the recommendations of the 
     interagency councils, the Director, assisted by the 
     Administrator, shall have final authority to determine which 
     of the candidate projects shall be funded from the Fund.
       ``(E) Agencies shall assess the results of funded projects.
       ``(c) In determining which proposals to recommend for 
     funding, the Administrator--
       ``(1) shall consider criteria that include whether a 
     proposal--
       ``(A) identifies the group to be served, including 
     citizens, businesses, the Federal Government, or other 
     governments;
       ``(B) indicates what service or information the project 
     will provide that meets needs of groups identified under 
     subparagraph (A);
       ``(C) ensures proper security and protects privacy;
       ``(D) is interagency in scope, including projects 
     implemented by a primary or single agency that--
       ``(i) could confer benefits on multiple agencies; and
       ``(ii) have the support of other agencies; and
       ``(E) has performance objectives that tie to agency 
     missions and strategic goals, and interim results that relate 
     to the objectives; and
       ``(2) may also rank proposals based on criteria that 
     include whether a proposal--
       ``(A) has Governmentwide application or implications;
       ``(B) has demonstrated support by the public to be served;
       ``(C) integrates Federal with State, local, or tribal 
     approaches to service delivery;
       ``(D) identifies resource commitments from nongovernmental 
     sectors;
       ``(E) identifies resource commitments from the agencies 
     involved;
       ``(F) uses web-based technologies to achieve objectives;
       ``(G) identifies records management and records access 
     strategies;
       ``(H) supports more effective citizen participation in and 
     interaction with agency activities that further progress 
     toward a more citizen-centered Government;
       ``(I) directly delivers Government information and services 
     to the public or provides the infrastructure for delivery;
       ``(J) supports integrated service delivery;
       ``(K) describes how business processes across agencies will 
     reflect appropriate transformation simultaneous to technology 
     implementation; and
       ``(L) is new or innovative and does not supplant existing 
     funding streams within agencies.

[[Page H8947]]

       ``(d) The Fund may be used to fund the integrated Internet-
     based system under section 204 of the E-Government Act of 
     2002.
       ``(e) None of the funds provided from the Fund may be 
     transferred to any agency until 15 days after the 
     Administrator of the General Services Administration has 
     submitted to the Committees on Appropriations of the Senate 
     and the House of Representatives, the Committee on 
     Governmental Affairs of the Senate, the Committee on 
     Government Reform of the House of Representatives, and the 
     appropriate authorizing committees of the Senate and the 
     House of Representatives, a notification and description of 
     how the funds are to be allocated and how the expenditure 
     will further the purposes of this chapter.
       ``(f)(1) The Director shall report annually to Congress on 
     the operation of the Fund, through the report established 
     under section 3606.
       ``(2) The report under paragraph (1) shall describe--
       ``(A) all projects which the Director has approved for 
     funding from the Fund; and
       ``(B) the results that have been achieved to date for these 
     funded projects.
       ``(g)(1) There are authorized to be appropriated to the 
     Fund--
       ``(A) $45,000,000 for fiscal year 2003;
       ``(B) $50,000,000 for fiscal year 2004;
       ``(C) $100,000,000 for fiscal year 2005;
       ``(D) $150,000,000 for fiscal year 2006; and
       ``(E) such sums as are necessary for fiscal year 2007.
       ``(2) Funds appropriated under this subsection shall remain 
     available until expended.

     ``Sec. 3605. Program to encourage innovative solutions to 
       enhance electronic Government services and processes

       ``(a) Establishment of Program.--The Administrator shall 
     establish and promote a Governmentwide program to encourage 
     contractor innovation and excellence in facilitating the 
     development and enhancement of electronic Government services 
     and processes.
       ``(b) Issuance of Announcements Seeking Innovative 
     Solutions.--Under the program, the Administrator, in 
     consultation with the Council and the Administrator for 
     Federal Procurement Policy, shall issue announcements seeking 
     unique and innovative solutions to facilitate the development 
     and enhancement of electronic Government services and 
     processes.
       ``(c) Multiagency Technical Assistance Team.--(1) The 
     Administrator, in consultation with the Council and the 
     Administrator for Federal Procurement Policy, shall convene a 
     multiagency technical assistance team to assist in screening 
     proposals submitted to the Administrator to provide unique 
     and innovative solutions to facilitate the development and 
     enhancement of electronic Government services and processes. 
     The team shall be composed of employees of the agencies 
     represented on the Council who have expertise in scientific 
     and technical disciplines that would facilitate the 
     assessment of the feasibility of the proposals.
       ``(2) The technical assistance team shall--
       ``(A) assess the feasibility, scientific and technical 
     merits, and estimated cost of each proposal; and
       ``(B) submit each proposal, and the assessment of the 
     proposal, to the Administrator.
       ``(3) The technical assistance team shall not consider or 
     evaluate proposals submitted in response to a solicitation 
     for offers for a pending procurement or for a specific agency 
     requirement.
       ``(4) After receiving proposals and assessments from the 
     technical assistance team, the Administrator shall consider 
     recommending appropriate proposals for funding under the E-
     Government Fund established under section 3604 or, if 
     appropriate, forward the proposal and the assessment of it to 
     the executive agency whose mission most coincides with the 
     subject matter of the proposal.

     ``Sec. 3606. E-Government report

       ``(a) Not later than March 1 of each year, the Director 
     shall submit an E-Government status report to the Committee 
     on Governmental Affairs of the Senate and the Committee on 
     Government Reform of the House of Representatives.
       ``(b) The report under subsection (a) shall contain--
       ``(1) a summary of the information reported by agencies 
     under section 202(f) of the E-Government Act of 2002;
       ``(2) the information required to be reported by section 
     3604(f); and
       ``(3) a description of compliance by the Federal Government 
     with other goals and provisions of the E-Government Act of 
     2002.''.
       (b) Technical and Conforming Amendment.--The table of 
     chapters for title 44, United States Code, is amended by 
     inserting after the item relating to chapter 35 the 
     following:

``36. Management and Promotion of Electronic Government Serv3601''.....

     SEC. 102. CONFORMING AMENDMENTS.

       (a) Electronic Government and Information Technologies.--
       (1) In general.--Chapter 3 of title 40, United States Code, 
     is amended by inserting after section 304 the following new 
     section:

     ``Sec. 305. Electronic Government and information 
       technologies

       ``The Administrator of General Services shall consult with 
     the Administrator of the Office of Electronic Government on 
     programs undertaken by the General Services Administration to 
     promote electronic Government and the efficient use of 
     information technologies by Federal agencies.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 3 of such title is amended by inserting 
     after the item relating to section 304 the following:

``305. Electronic Government and information technologies.''.
       (b) Modification of Deputy Director for Management 
     Functions.--Section 503(b) of title 31, United States Code, 
     is amended--
       (1) by redesignating paragraphs (5), (6), (7), (8), and 
     (9), as paragraphs (6), (7), (8), (9), and (10), 
     respectively; and
       (2) by inserting after paragraph (4) the following:
       ``(5) Chair the Chief Information Officers Council 
     established under section 3603 of title 44.''.
       (c) Office of Electronic Government.--
       (1) In general.--Chapter 5 of title 31, United States Code, 
     is amended by inserting after section 506 the following:

     ``Sec. 507. Office of Electronic Government

       ``The Office of Electronic Government, established under 
     section 3602 of title 44, is an office in the Office of 
     Management and Budget.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 5 of title 31, United States Code, is 
     amended by inserting after the item relating to section 506 
     the following:

``507. Office of Electronic Government.''.

  TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

     SEC. 201. DEFINITIONS.

       Except as otherwise provided, in this title the definitions 
     under sections 3502 and 3601 of title 44, United States Code, 
     shall apply.

     SEC. 202. FEDERAL AGENCY RESPONSIBILITIES.

       (a) In General.--The head of each agency shall be 
     responsible for--
       (1) complying with the requirements of this Act (including 
     the amendments made by this Act), the related information 
     resource management policies and guidance established by the 
     Director of the Office of Management and Budget, and the 
     related information technology standards promulgated by the 
     Secretary of Commerce;
       (2) ensuring that the information resource management 
     policies and guidance established under this Act by the 
     Director, and the information technology standards 
     promulgated under this Act by the Secretary of Commerce are 
     communicated promptly and effectively to all relevant 
     officials within their agency; and
       (3) supporting the efforts of the Director and the 
     Administrator of the General Services Administration to 
     develop, maintain, and promote an integrated Internet-based 
     system of delivering Federal Government information and 
     services to the public under section 204.
       (b) Performance Integration.--
       (1) Agencies shall develop performance measures that 
     demonstrate how electronic government enables progress toward 
     agency objectives, strategic goals, and statutory mandates.
       (2) In measuring performance under this section, agencies 
     shall rely on existing data collections to the extent 
     practicable.
       (3) Areas of performance measurement that agencies should 
     consider include--
       (A) customer service;
       (B) agency productivity; and
       (C) adoption of innovative information technology, 
     including the appropriate use of commercial best practices.
       (4) Agencies shall link their performance goals, as 
     appropriate, to key groups, including citizens, businesses, 
     and other governments, and to internal Federal Government 
     operations.
       (5) As appropriate, agencies shall work collectively in 
     linking their performance goals to groups identified under 
     paragraph (4) and shall use information technology in 
     delivering Government information and services to those 
     groups.
       (c) Avoiding Diminished Access.--When promulgating policies 
     and implementing programs regarding the provision of 
     Government information and services over the Internet, agency 
     heads shall consider the impact on persons without access to 
     the Internet, and shall, to the extent practicable--
       (1) ensure that the availability of Government information 
     and services has not been diminished for individuals who lack 
     access to the Internet; and
       (2) pursue alternate modes of delivery that make Government 
     information and services more accessible to individuals who 
     do not own computers or lack access to the Internet.
       (d) Accessibility to People With Disabilities.--All actions 
     taken by Federal departments and agencies under this Act 
     shall be in compliance with section 508 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794d).
       (e) Sponsored Activities.--Agencies shall sponsor 
     activities that use information technology to engage the 
     public in the development and implementation of policies and 
     programs.
       (f) Chief Information Officers.--The Chief Information 
     Officer of each of the agencies designated under chapter 36 
     of title 44, United States Code (as added by this Act) shall 
     be responsible for--
       (1) participating in the functions of the Chief Information 
     Officers Council; and
       (2) monitoring the implementation, within their respective 
     agencies, of information technology standards promulgated 
     under this Act by the Secretary of Commerce, including common 
     standards for interconnectivity and interoperability, 
     categorization of Federal Government electronic information, 
     and computer system efficiency and security.
       (g) E-Government Status Report.--
       (1) In general.--Each agency shall compile and submit to 
     the Director an annual E-Government Status Report on--
       (A) the status of the implementation by the agency of 
     electronic government initiatives;
       (B) compliance by the agency with this Act; and
       (C) how electronic Government initiatives of the agency 
     improve performance in delivering programs to constituencies.

[[Page H8948]]

       (2) Submission.--Each agency shall submit an annual report 
     under this subsection--
       (A) to the Director at such time and in such manner as the 
     Director requires;
       (B) consistent with related reporting requirements; and
       (C) which addresses any section in this title relevant to 
     that agency.
       (h) Use of Technology.--Nothing in this Act supersedes the 
     responsibility of an agency to use or manage information 
     technology to deliver Government information and services 
     that fulfill the statutory mission and programs of the 
     agency.
       (i) National Security Systems.--
       (1) Inapplicability.--Except as provided under paragraph 
     (2), this title does not apply to national security systems 
     as defined in section 11103 of title 40, United States Code.
       (2) Applicability.--This section, section 203, and section 
     214 do apply to national security systems to the extent 
     practicable and consistent with law.

     SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE 
                   AND ACCEPTANCE OF ELECTRONIC SIGNATURES.

       (a) Purpose.--The purpose of this section is to achieve 
     interoperable implementation of electronic signatures for 
     appropriately secure electronic transactions with Government.
       (b) Electronic Signatures.--In order to fulfill the 
     objectives of the Government Paperwork Elimination Act 
     (Public Law 105-277; 112 Stat. 2681-749 through 2681-751), 
     each Executive agency (as defined under section 105 of title 
     5, United States Code) shall ensure that its methods for use 
     and acceptance of electronic signatures are compatible with 
     the relevant policies and procedures issued by the Director.
       (c) Authority for Electronic Signatures.--The Administrator 
     of General Services shall support the Director by 
     establishing a framework to allow efficient interoperability 
     among Executive agencies when using electronic signatures, 
     including processing of digital signatures.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the General Services Administration, to 
     ensure the development and operation of a Federal bridge 
     certification authority for digital signature compatibility, 
     and for other activities consistent with this section, 
     $8,000,000 or such sums as are necessary in fiscal year 2003, 
     and such sums as are necessary for each fiscal year 
     thereafter.

     SEC. 204. FEDERAL INTERNET PORTAL.

       (a) In General.--
       (1) Public access.--The Director shall work with the 
     Administrator of the General Services Administration and 
     other agencies to maintain and promote an integrated 
     Internet-based system of providing the public with access to 
     Government information and services.
       (2) Criteria.--To the extent practicable, the integrated 
     system shall be designed and operated according to the 
     following criteria:
       (A) The provision of Internet-based Government information 
     and services directed to key groups, including citizens, 
     business, and other governments, and integrated according to 
     function or topic rather than separated according to the 
     boundaries of agency jurisdiction.
       (B) An ongoing effort to ensure that Internet-based 
     Government services relevant to a given citizen activity are 
     available from a single point.
       (C) Access to Federal Government information and services 
     consolidated, as appropriate, with Internet-based information 
     and services provided by State, local, and tribal 
     governments.
       (D) Access to Federal Government information held by 1 or 
     more agencies shall be made available in a manner that 
     protects privacy, consistent with law.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the General Services Administration 
     $15,000,000 for the maintenance, improvement, and promotion 
     of the integrated Internet-based system for fiscal year 2003, 
     and such sums as are necessary for fiscal years 2004 through 
     2007.

     SEC. 205. FEDERAL COURTS.

       (a) Individual Court Websites.--The Chief Justice of the 
     United States, the chief judge of each circuit and district, 
     and the chief bankruptcy judge of each district shall 
     establish with respect to the Supreme Court or the respective 
     court of appeals, district, or bankruptcy court of a 
     district, a website that contains the following information 
     or links to websites with the following information:
       (1) Location and contact information for the courthouse, 
     including the telephone numbers and contact names for the 
     clerk's office and justices' or judges' chambers.
       (2) Local rules and standing or general orders of the 
     court.
       (3) Individual rules, if in existence, of each justice or 
     judge in that court.
       (4) Access to docket information for each case.
       (5) Access to the substance of all written opinions issued 
     by the court, regardless of whether such opinions are to be 
     published in the official court reporter, in a text 
     searchable format.
       (6) Access to all documents filed with the courthouse in 
     electronic form, described under subsection (c).
       (7) Any other information (including forms in a format that 
     can be downloaded) that the court determines useful to the 
     public.
       (b) Maintenance of Data Online.--
       (1) Update of information.--The information and rules on 
     each website shall be updated regularly and kept reasonably 
     current.
       (2) Closed cases.--Electronic files and docket information 
     for cases closed for more than 1 year are not required to be 
     made available online, except all written opinions with a 
     date of issuance after the effective date of this section 
     shall remain available online.
       (c) Electronic Filings.--
       (1) In general.--Except as provided under paragraph (2), 
     each court shall make any document that is filed 
     electronically publicly available online. A court may convert 
     any document that is filed in paper form to electronic form. 
     To the extent such conversions are made, all such electronic 
     versions of the document shall be made available online.
       (2) Exceptions.--Documents that are filed that are not 
     otherwise available to the public, such as documents filed 
     under seal, shall not be made available online.
       (3) Privacy and security concerns.--The Judicial Conference 
     of the United States may promulgate rules under this 
     subsection to protect important privacy and security 
     concerns.
       (d) Dockets With Links to Documents.--The Judicial 
     Conference of the United States shall explore the feasibility 
     of technology to post online dockets with links allowing all 
     filings, decisions, and rulings in each case to be obtained 
     from the docket sheet of that case.
       (e) Cost of Providing Electronic Docketing Information.--
     Section 303(a) of the Judiciary Appropriations Act, 1992 (28 
     U.S.C. 1913 note) is amended in the first sentence by 
     striking ``shall hereafter'' and inserting ``may, only to the 
     extent necessary,''.
       (f) Time Requirements.--Not later than 2 years after the 
     effective date of this title, the websites under subsection 
     (a) shall be established, except that access to documents 
     filed in electronic form shall be established not later than 
     4 years after that effective date.
       (g) Deferral.--
       (1) In general.--
       (A) Election.--
       (i) Notification.--The Chief Justice of the United States, 
     a chief judge, or chief bankruptcy judge may submit a 
     notification to the Administrative Office of the United 
     States Courts to defer compliance with any requirement of 
     this section with respect to the Supreme Court, a court of 
     appeals, district, or the bankruptcy court of a district.
       (ii) Contents.--A notification submitted under this 
     subparagraph shall state--

       (I) the reasons for the deferral; and
       (II) the online methods, if any, or any alternative 
     methods, such court or district is using to provide greater 
     public access to information.

       (B) Exception.--To the extent that the Supreme Court, a 
     court of appeals, district, or bankruptcy court of a district 
     maintains a website under subsection (a), the Supreme Court 
     or that court of appeals or district shall comply with 
     subsection (b)(1).
       (2) Report.--Not later than 1 year after the effective date 
     of this title, and every year thereafter, the Judicial 
     Conference of the United States shall submit a report to the 
     Committees on Governmental Affairs and the Judiciary of the 
     Senate and the Committees on Government Reform and the 
     Judiciary of the House of Representatives that--
       (A) contains all notifications submitted to the 
     Administrative Office of the United States Courts under this 
     subsection; and
       (B) summarizes and evaluates all notifications.

     SEC. 206. REGULATORY AGENCIES.

       (a) Purposes.--The purposes of this section are to--
       (1) improve performance in the development and issuance of 
     agency regulations by using information technology to 
     increase access, accountability, and transparency; and
       (2) enhance public participation in Government by 
     electronic means, consistent with requirements under 
     subchapter II of chapter 5 of title 5, United States Code, 
     (commonly referred to as the ``Administrative Procedures 
     Act'').
       (b) Information Provided by Agencies Online.--To the extent 
     practicable as determined by the agency in consultation with 
     the Director, each agency (as defined under section 551 of 
     title 5, United States Code) shall ensure that a publicly 
     accessible Federal Government website includes all 
     information about that agency required to be published in the 
     Federal Register under paragraphs (1) and (2) of section 
     552(a) of title 5, United States Code.
       (c) Submissions by Electronic Means.--To the extent 
     practicable, agencies shall accept submissions under section 
     553(c) of title 5, United States Code, by electronic means.
       (d) Electronic Docketing.--
       (1) In general.--To the extent practicable, as determined 
     by the agency in consultation with the Director, agencies 
     shall ensure that a publicly accessible Federal Government 
     website contains electronic dockets for rulemakings under 
     section 553 of title 5, United States Code.
       (2) Information available.--Agency electronic dockets shall 
     make publicly available online to the extent practicable, as 
     determined by the agency in consultation with the Director--
       (A) all submissions under section 553(c) of title 5, United 
     States Code; and
       (B) other materials that by agency rule or practice are 
     included in the rulemaking docket under section 553(c) of 
     title 5, United States Code, whether or not submitted 
     electronically.
       (e) Time Limitation.--Agencies shall implement the 
     requirements of this section consistent with a timetable 
     established by the Director and reported to Congress in the 
     first annual report under section 3606 of title 44 (as added 
     by this Act).

     SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION OF 
                   GOVERNMENT INFORMATION.

       (a) Purpose.--The purpose of this section is to improve the 
     methods by which Government information, including 
     information on the Internet, is organized, preserved, and 
     made accessible to the public.
       (b) Definitions.--In this section, the term--
       (1) ``Committee'' means the Interagency Committee on 
     Government Information established under subsection (c); and
       (2) ``directory'' means a taxonomy of subjects linked to 
     websites that--

[[Page H8949]]

       (A) organizes Government information on the Internet 
     according to subject matter; and
       (B) may be created with the participation of human editors.
       (c) Interagency Committee.--
       (1) Establishment.--Not later than 180 days after the date 
     of enactment of this title, the Director shall establish the 
     Interagency Committee on Government Information.
       (2) Membership.--The Committee shall be chaired by the 
     Director or the designee of the Director and--
       (A) shall include representatives from--
       (i) the National Archives and Records Administration;
       (ii) the offices of the Chief Information Officers from 
     Federal agencies; and
       (iii) other relevant officers from the executive branch; 
     and
       (B) may include representatives from the Federal 
     legislative and judicial branches.
       (3) Functions.--The Committee shall--
       (A) engage in public consultation to the maximum extent 
     feasible, including consultation with interested communities 
     such as public advocacy organizations;
       (B) conduct studies and submit recommendations, as provided 
     under this section, to the Director and Congress; and
       (C) share effective practices for access to, dissemination 
     of, and retention of Federal information.
       (4) Termination.--The Committee may be terminated on a date 
     determined by the Director, except the Committee may not 
     terminate before the Committee submits all recommendations 
     required under this section.
       (d) Categorizing of Information.--
       (1) Committee functions.--Not later than 2 years after the 
     date of enactment of this Act, the Committee shall submit 
     recommendations to the Director on--
       (A) the adoption of standards, which are open to the 
     maximum extent feasible, to enable the organization and 
     categorization of Government information--
       (i) in a way that is searchable electronically, including 
     by searchable identifiers; and
       (iii) in ways that are interoperable across agencies;
       (B) the definition of categories of Government information 
     which should be classified under the standards; and
       (C) determining priorities and developing schedules for the 
     initial implementation of the standards by agencies.
       (2) Functions of the director.--Not later than 1 year after 
     the submission of recommendations under paragraph (1), the 
     Director shall issue policies--
       (A) requiring that agencies use standards, which are open 
     to the maximum extent feasible, to enable the organization 
     and categorization of Government information--
       (i) in a way that is searchable electronically, including 
     by searchable identifiers;
       (ii) in ways that are interoperable across agencies; and
       (iii) that are, as appropriate, consistent with the 
     standards promulgated by the Secretary of Commerce under 
     section 3602(f)(8) of title 44, United States Code;
       (B) defining categories of Government information which 
     shall be required to be classified under the standards; and
       (C) determining priorities and developing schedules for the 
     initial implementation of the standards by agencies.
       (3) Modification of policies.--After the submission of 
     agency reports under paragraph (4), the Director shall modify 
     the policies, as needed, in consultation with the Committee 
     and interested parties.
       (4) Agency functions.--Each agency shall report annually to 
     the Director, in the report established under section 202(g), 
     on compliance of that agency with the policies issued under 
     paragraph (2)(A).
       (e) Public Access to Electronic Information.--
       (1) Committee functions.--Not later than 2 years after the 
     date of enactment of this Act, the Committee shall submit 
     recommendations to the Director and the Archivist of the 
     United States on--
       (A) the adoption by agencies of policies and procedures to 
     ensure that chapters 21, 25, 27, 29, and 31 of title 44, 
     United States Code, are applied effectively and 
     comprehensively to Government information on the Internet and 
     to other electronic records; and
       (B) the imposition of timetables for the implementation of 
     the policies and procedures by agencies.
       (2) Functions of the archivist.--Not later than 1 year 
     after the submission of recommendations by the Committee 
     under paragraph (1), the Archivist of the United States shall 
     issue policies--
       (A) requiring the adoption by agencies of policies and 
     procedures to ensure that chapters 21, 25, 27, 29, and 31 of 
     title 44, United States Code, are applied effectively and 
     comprehensively to Government information on the Internet and 
     to other electronic records; and
       (B) imposing timetables for the implementation of the 
     policies, procedures, and technologies by agencies.
       (3) Modification of policies.--After the submission of 
     agency reports under paragraph (4), the Archivist of the 
     United States shall modify the policies, as needed, in 
     consultation with the Committee and interested parties.
       (4) Agency functions.--Each agency shall report annually to 
     the Director, in the report established under section 202(g), 
     on compliance of that agency with the policies issued under 
     paragraph (2)(A).
       (f) Agency Websites.--
       (1) Standards for agency websites.--Not later than 2 years 
     after the effective date of this title, the Director shall 
     promulgate guidance for agency websites that includes--
       (A) requirements that websites include direct links to--
       (i) descriptions of the mission and statutory authority of 
     the agency;
       (ii) information made available to the public under 
     subsections (a)(1) and (b) of section 552 of title 5, United 
     States Code (commonly referred to as the ``Freedom of 
     Information Act'');
       (iii) information about the organizational structure of the 
     agency; and
       (iv) the strategic plan of the agency developed under 
     section 306 of title 5, United States Code; and
       (B) minimum agency goals to assist public users to navigate 
     agency websites, including--
       (i) speed of retrieval of search results;
       (ii) the relevance of the results;
       (iii) tools to aggregate and disaggregate data; and
       (iv) security protocols to protect information.
       (2) Agency requirements.--(A) Not later than 2 years after 
     the date of enactment of this Act, each agency shall--
       (i) consult with the Committee and solicit public comment;
       (ii) establish a process for determining which Government 
     information the agency intends to make available and 
     accessible to the public on the Internet and by other means;
       (iii) develop priorities and schedules for making 
     Government information available and accessible;
       (iv) make such final determinations, priorities, and 
     schedules available for public comment;
       (v) post such final determinations, priorities, and 
     schedules on the Internet; and
       (vi) submit such final determinations, priorities, and 
     schedules to the Director, in the report established under 
     section 202(g).
       (B) Each agency shall update determinations, priorities, 
     and schedules of the agency, as needed, after consulting with 
     the Committee and soliciting public comment, if appropriate.
       (3) Public domain directory of public federal government 
     websites.--
       (A) Establishment.--Not later than 2 years after the 
     effective date of this title, the Director and each agency 
     shall--
       (i) develop and establish a public domain directory of 
     public Federal Government websites; and
       (ii) post the directory on the Internet with a link to the 
     integrated Internet-based system established under section 
     204.
       (B) Development.--With the assistance of each agency, the 
     Director shall--
       (i) direct the development of the directory through a 
     collaborative effort, including input from--

       (I) agency librarians;
       (II) information technology managers;
       (III) program managers;
       (IV) records managers;
       (V) Federal depository librarians; and
       (VI) other interested parties; and

       (ii) develop a public domain taxonomy of subjects used to 
     review and categorize public Federal Government websites.
       (C) Update.--With the assistance of each agency, the 
     Administrator of the Office of Electronic Government shall--
       (i) update the directory as necessary, but not less than 
     every 6 months; and
       (ii) solicit interested persons for improvements to the 
     directory.
       (g) Access to Federally Funded Research and Development.--
       (1) Development and maintenance of governmentwide 
     repository and website.--
       (A) Repository and website.--The Director of the Office of 
     Management and Budget, in consultation with the Director of 
     the Office of Science and Technology Policy and other 
     relevant agencies, shall ensure the development and 
     maintenance of--
       (i) a repository that fully integrates, to the maximum 
     extent feasible, information about research and development 
     funded by the Federal Government, and the repository shall--

       (I) include information about research and development 
     funded by the Federal Government, consistent with any 
     relevant protections for the information under section 552 of 
     title 5, United States Code, and performed by--

       (aa) institutions not a part of the Federal Government, 
     including State, local, and foreign governments; industrial 
     firms; educational institutions; not-for-profit 
     organizations; federally funded research and development 
     centers; and private individuals; and
       (bb) entities of the Federal Government, including research 
     and development laboratories, centers, and offices; and
       (II) integrate information about each separate research and 
     development task or award, including--
       (aa) the dates upon which the task or award is expected to 
     start and end;
       (bb) a brief summary describing the objective and the 
     scientific and technical focus of the task or award;
       (cc) the entity or institution performing the task or award 
     and its contact information;
       (dd) the total amount of Federal funds expected to be 
     provided to the task or award over its lifetime and the 
     amount of funds expected to be provided in each fiscal year 
     in which the work of the task or award is ongoing;
       (ee) any restrictions attached to the task or award that 
     would prevent the sharing with the general public of any or 
     all of the information required by this subsection, and the 
     reasons for such restrictions; and
       (ff) such other information as may be determined to be 
     appropriate; and
       (ii) 1 or more websites upon which all or part of the 
     repository of Federal research and development shall be made 
     available to and searchable by Federal agencies and non-
     Federal entities, including the general public, to 
     facilitate--

       (I) the coordination of Federal research and development 
     activities;

[[Page H8950]]

       (II) collaboration among those conducting Federal research 
     and development;
       (III) the transfer of technology among Federal agencies and 
     between Federal agencies and non-Federal entities; and
       (IV) access by policymakers and the public to information 
     concerning Federal research and development activities.

       (B) Oversight.--The Director of the Office of Management 
     and Budget shall issue any guidance determined necessary to 
     ensure that agencies provide all information requested under 
     this subsection.
       (2) Agency functions.--Any agency that funds Federal 
     research and development under this subsection shall provide 
     the information required to populate the repository in the 
     manner prescribed by the Director of the Office of Management 
     and Budget.
       (3) Committee functions.--Not later than 18 months after 
     the date of enactment of this Act, working with the Director 
     of the Office of Science and Technology Policy, and after 
     consultation with interested parties, the Committee shall 
     submit recommendations to the Director on--
       (A) policies to improve agency reporting of information for 
     the repository established under this subsection; and
       (B) policies to improve dissemination of the results of 
     research performed by Federal agencies and federally funded 
     research and development centers.
       (4) Functions of the director.--After submission of 
     recommendations by the Committee under paragraph (3), the 
     Director shall report on the recommendations of the Committee 
     and Director to Congress, in the E-Government report under 
     section 3606 of title 44 (as added by this Act).
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated for the development, maintenance, and 
     operation of the Governmentwide repository and website under 
     this subsection--
       (A) $2,000,000 in each of the fiscal years 2003 through 
     2005; and
       (B) such sums as are necessary in each of the fiscal years 
     2006 and 2007.

     SEC. 208. PRIVACY PROVISIONS.

       (a) Purpose.--The purpose of this section is to ensure 
     sufficient protections for the privacy of personal 
     information as agencies implement citizen-centered electronic 
     Government.
       (b) Privacy Impact Assessments.--
       (1) Responsibilities of agencies.--
       (A) In general.--An agency shall take actions described 
     under subparagraph (B) before developing or procuring 
     information technology that collects, maintains, or 
     disseminates information that is in an identifiable form.
       (B) Agency activities.--To the extent required under 
     subparagraph (A), each agency shall--
       (i) conduct a privacy impact assessment;
       (ii) ensure the review of the privacy impact assessment by 
     the Chief Information Officer, or equivalent official, as 
     determined by the head of the agency; and
       (iii) if practicable, after completion of the review under 
     clause (ii), make the privacy impact assessment publicly 
     available through the website of the agency, publication in 
     the Federal Register, or other means.
       (C) Sensitive information.--Subparagraph (B)(iii) may be 
     modified or waived for security reasons, or to protect 
     classified, sensitive, or private information contained in an 
     assessment.
       (D) Copy to director.--Agencies shall provide the Director 
     with a copy of the privacy impact assessment for each system 
     for which funding is requested.
       (2) Contents of a privacy impact assessment.--
       (A) In general.--The Director shall issue guidance to 
     agencies specifying the required contents of a privacy impact 
     assessment.
       (B) Guidance.--The guidance shall--
       (i) ensure that a privacy impact assessment is commensurate 
     with the size of the information system being assessed, the 
     sensitivity of information that is in an identifiable form in 
     that system, and the risk of harm from unauthorized release 
     of that information; and
       (ii) require that a privacy impact assessment address--

       (I) what information is to be collected;
       (II) why the information is being collected;
       (III) the intended use of the agency of the information;
       (IV) with whom the information will be shared;
       (V) what notice or opportunities for consent would be 
     provided to individuals regarding what information is 
     collected and how that information is shared;
       (VI) how the information will be secured; and
       (VII) whether a system of records is being created under 
     section 552a of title 5, United States Code, (commonly 
     referred to as the ``Privacy Act'').

       (3) Responsibilities of the director.--The Director shall--
       (A) develop policies and guidelines for agencies on the 
     conduct of privacy impact assessments;
       (B) oversee the implementation of the privacy impact 
     assessment process throughout the Government; and
       (C) require agencies to conduct privacy impact assessments 
     of existing information systems or ongoing collections of 
     information that is in an identifiable form as the Director 
     determines appropriate.
       (c) Privacy Protections on Agency Websites.--
       (1) Privacy policies on websites.--
       (A) Guidelines for notices.--The Director shall develop 
     guidance for privacy notices on agency websites used by the 
     public.
       (B) Contents.--The guidance shall require that a privacy 
     notice address, consistent with section 552a of title 5, 
     United States Code--
       (i) what information is to be collected;
       (ii) why the information is being collected;
       (iii) the intended use of the agency of the information;
       (iv) with whom the information will be shared;
       (v) what notice or opportunities for consent would be 
     provided to individuals regarding what information is 
     collected and how that information is shared;
       (vi) how the information will be secured; and
       (vii) the rights of the individual under section 552a of 
     title 5, United States Code (commonly referred to as the 
     ``Privacy Act''), and other laws relevant to the protection 
     of the privacy of an individual.
       (2) Privacy policies in machine-readable formats.--The 
     Director shall issue guidance requiring agencies to translate 
     privacy policies into a standardized machine-readable format.
       (d) Definition.--In this section, the term ``identifiable 
     form'' means any representation of information that permits 
     the identity of an individual to whom the information applies 
     to be reasonably inferred by either direct or indirect means.

     SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORKFORCE 
                   DEVELOPMENT.

       (a) Purpose.--The purpose of this section is to improve the 
     skills of the Federal workforce in using information 
     technology to deliver Government information and services.
       (b) Workforce Development.--
       (1) In general.--In consultation with the Director, the 
     Chief Information Officers Council, and the Administrator of 
     General Services, the Director of the Office of Personnel 
     Management shall--
       (A) analyze, on an ongoing basis, the personnel needs of 
     the Federal Government related to information technology and 
     information resource management;
       (B) oversee the development of curricula, training methods, 
     and training priorities that correspond to the projected 
     personnel needs of the Federal Government related to 
     information technology and information resource management; 
     and
       (C) assess the training of Federal employees in information 
     technology disciplines, as necessary, in order to ensure that 
     the information resource management needs of the Federal 
     Government are addressed.
       (2) Authority to detail employees to non-federal 
     employers.--In carrying out paragraph (1), the Director of 
     the Office of Personnel Management may provide for a program 
     under which a Federal employee may be detailed to a non-
     Federal employer. The Director of the Office of Personnel 
     Management shall prescribe regulations for such program, 
     including the conditions for service and duties as the 
     Director considers necessary.
       (3) Coordination provision.--An assignment described in 
     section 3703 of title 5, United States Code, shall be made 
     only in accordance with the program established under 
     paragraph (2), if any.
       (4) Employee participation.--Subject to information 
     resource management needs and the limitations imposed by 
     resource needs in other occupational areas, and consistent 
     with their overall workforce development strategies, agencies 
     shall encourage employees to participate in occupational 
     information technology training.
       (5) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Office of Personnel Management for 
     the implementation of this subsection, $7,000,000 in fiscal 
     year 2003, and such sums as are necessary for each fiscal 
     year thereafter.
       (c) Information Technology Exchange Program.--
       (1) In general.--Subpart B of part III of title 5, United 
     States Code, is amended by adding at the end the following:

         ``CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM

``Sec.
``3701. Definitions.
``3702. General provisions.
``3703. Assignment of employees to private sector organizations.
``3704. Assignment of employees from private sector organizations.
``3705. Application to Office of the Chief Technology Officer of the 
              District of Columbia.
``3706. Reporting requirement.
``3707. Regulations.

     ``Sec. 3701. Definitions

       ``For purposes of this chapter--
       ``(1) the term `agency' means an Executive agency, but does 
     not include the General Accounting Office; and
       ``(2) the term `detail' means--
       ``(A) the assignment or loan of an employee of an agency to 
     a private sector organization without a change of position 
     from the agency that employs the individual, or
       ``(B) the assignment or loan of an employee of a private 
     sector organization to an agency without a change of position 
     from the private sector organization that employs the 
     individual,
     whichever is appropriate in the context in which such term is 
     used.

     ``Sec. 3702. General provisions

       ``(a) Assignment Authority.--On request from or with the 
     agreement of a private sector organization, and with the 
     consent of the employee concerned, the head of an agency may 
     arrange for the assignment of an employee of the agency to a 
     private sector organization or an employee of a private 
     sector organization to the agency. An eligible employee is an 
     individual who--
       ``(1) works in the field of information technology 
     management;

[[Page H8951]]

       ``(2) is considered an exceptional performer by the 
     individual's current employer; and
       ``(3) is expected to assume increased information 
     technology management responsibilities in the future.
     An employee of an agency shall be eligible to participate in 
     this program only if the employee is employed at the GS-11 
     level or above (or equivalent) and is serving under a career 
     or career-conditional appointment or an appointment of 
     equivalent tenure in the excepted service, and applicable 
     requirements of section 209(b) of the E-Government Act of 
     2002 are met with respect to the proposed assignment of such 
     employee.
       ``(b) Agreements.--Each agency that exercises its authority 
     under this chapter shall provide for a written agreement 
     between the agency and the employee concerned regarding the 
     terms and conditions of the employee's assignment. In the 
     case of an employee of the agency, the agreement shall--
       ``(1) require the employee to serve in the civil service, 
     upon completion of the assignment, for a period equal to the 
     length of the assignment; and
       ``(2) provide that, in the event the employee fails to 
     carry out the agreement (except for good and sufficient 
     reason, as determined by the head of the agency from which 
     assigned) the employee shall be liable to the United States 
     for payment of all expenses of the assignment.
     An amount under paragraph (2) shall be treated as a debt due 
     the United States.
       ``(c) Termination.--Assignments may be terminated by the 
     agency or private sector organization concerned for any 
     reason at any time.
       ``(d) Duration.--Assignments under this chapter shall be 
     for a period of between 3 months and 1 year, and may be 
     extended in 3-month increments for a total of not more than 1 
     additional year, except that no assignment under this chapter 
     may commence after the end of the 5-year period beginning on 
     the date of the enactment of this chapter.
       ``(e) Assistance.--The Chief Information Officers Council, 
     by agreement with the Office of Personnel Management, may 
     assist in the administration of this chapter, including by 
     maintaining lists of potential candidates for assignment 
     under this chapter, establishing mentoring relationships for 
     the benefit of individuals who are given assignments under 
     this chapter, and publicizing the program.
       ``(f) Considerations.--In exercising any authority under 
     this chapter, an agency shall take into consideration--
       ``(1) the need to ensure that small business concerns are 
     appropriately represented with respect to the assignments 
     described in sections 3703 and 3704, respectively; and
       ``(2) how assignments described in section 3703 might best 
     be used to help meet the needs of the agency for the training 
     of employees in information technology management.

     ``Sec. 3703. Assignment of employees to private sector 
       organizations

       ``(a) In General.--An employee of an agency assigned to a 
     private sector organization under this chapter is deemed, 
     during the period of the assignment, to be on detail to a 
     regular work assignment in his agency.
       ``(b) Coordination With Chapter 81.--Notwithstanding any 
     other provision of law, an employee of an agency assigned to 
     a private sector organization under this chapter is entitled 
     to retain coverage, rights, and benefits under subchapter I 
     of chapter 81, and employment during the assignment is deemed 
     employment by the United States, except that, if the employee 
     or the employee's dependents receive from the private sector 
     organization any payment under an insurance policy for which 
     the premium is wholly paid by the private sector 
     organization, or other benefit of any kind on account of the 
     same injury or death, then, the amount of such payment or 
     benefit shall be credited against any compensation otherwise 
     payable under subchapter I of chapter 81.
       ``(c) Reimbursements.--The assignment of an employee to a 
     private sector organization under this chapter may be made 
     with or without reimbursement by the private sector 
     organization for the travel and transportation expenses to or 
     from the place of assignment, subject to the same terms and 
     conditions as apply with respect to an employee of a Federal 
     agency or a State or local government under section 3375, and 
     for the pay, or a part thereof, of the employee during 
     assignment. Any reimbursements shall be credited to the 
     appropriation of the agency used for paying the travel and 
     transportation expenses or pay.
       ``(d) Tort Liability; Supervision.--The Federal Tort Claims 
     Act and any other Federal tort liability statute apply to an 
     employee of an agency assigned to a private sector 
     organization under this chapter. The supervision of the 
     duties of an employee of an agency so assigned to a private 
     sector organization may be governed by an agreement between 
     the agency and the organization.
       ``(e) Small Business Concerns.--
       ``(1) In general.--The head of each agency shall take such 
     actions as may be necessary to ensure that, of the 
     assignments made under this chapter from such agency to 
     private sector organizations in each year, at least 20 
     percent are to small business concerns.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `small business concern' means a business 
     concern that satisfies the definitions and standards 
     specified by the Administrator of the Small Business 
     Administration under section 3(a)(2) of the Small Business 
     Act (as from time to time amended by the Administrator);
       ``(B) the term `year' refers to the 12-month period 
     beginning on the date of the enactment of this chapter, and 
     each succeeding 12-month period in which any assignments 
     under this chapter may be made; and
       ``(C) the assignments `made' in a year are those commencing 
     in such year.
       ``(3) Reporting requirement.--An agency which fails to 
     comply with paragraph (1) in a year shall, within 90 days 
     after the end of such year, submit a report to the Committees 
     on Government Reform and Small Business of the House of 
     Representatives and the Committees on Governmental Affairs 
     and Small Business of the Senate. The report shall include--
       ``(A) the total number of assignments made under this 
     chapter from such agency to private sector organizations in 
     the year;
       ``(B) of that total number, the number (and percentage) 
     made to small business concerns; and
       ``(C) the reasons for the agency's noncompliance with 
     paragraph (1).
       ``(4) Exclusion.--This subsection shall not apply to an 
     agency in any year in which it makes fewer than 5 assignments 
     under this chapter to private sector organizations.

     ``Sec. 3704. Assignment of employees from private sector 
       organizations

       ``(a) In General.--An employee of a private sector 
     organization assigned to an agency under this chapter is 
     deemed, during the period of the assignment, to be on detail 
     to such agency.
       ``(b) Terms and Conditions.--An employee of a private 
     sector organization assigned to an agency under this 
     chapter--
       ``(1) may continue to receive pay and benefits from the 
     private sector organization from which he is assigned;
       ``(2) is deemed, notwithstanding subsection (a), to be an 
     employee of the agency for the purposes of--
       ``(A) chapter 73;
       ``(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607, 
     643, 654, 1905, and 1913 of title 18;
       ``(C) sections 1343, 1344, and 1349(b) of title 31;
       ``(D) the Federal Tort Claims Act and any other Federal 
     tort liability statute;
       ``(E) the Ethics in Government Act of 1978;
       ``(F) section 1043 of the Internal Revenue Code of 1986; 
     and
       ``(G) section 27 of the Office of Federal Procurement 
     Policy Act;
       ``(3) may not have access to any trade secrets or to any 
     other nonpublic information which is of commercial value to 
     the private sector organization from which he is assigned; 
     and
       ``(4) is subject to such regulations as the President may 
     prescribe.
     The supervision of an employee of a private sector 
     organization assigned to an agency under this chapter may be 
     governed by agreement between the agency and the private 
     sector organization concerned. Such an assignment may be made 
     with or without reimbursement by the agency for the pay, or a 
     part thereof, of the employee during the period of 
     assignment, or for any contribution of the private sector 
     organization to employee benefit systems.
       ``(c) Coordination With Chapter 81.--An employee of a 
     private sector organization assigned to an agency under this 
     chapter who suffers disability or dies as a result of 
     personal injury sustained while performing duties during the 
     assignment shall be treated, for the purpose of subchapter I 
     of chapter 81, as an employee as defined by section 8101 who 
     had sustained the injury in the performance of duty, except 
     that, if the employee or the employee's dependents receive 
     from the private sector organization any payment under an 
     insurance policy for which the premium is wholly paid by the 
     private sector organization, or other benefit of any kind on 
     account of the same injury or death, then, the amount of such 
     payment or benefit shall be credited against any compensation 
     otherwise payable under subchapter I of chapter 81.
       ``(d) Prohibition Against Charging Certain Costs to the 
     Federal Government.--A private sector organization may not 
     charge the Federal Government, as direct or indirect costs 
     under a Federal contract, the costs of pay or benefits paid 
     by the organization to an employee assigned to an agency 
     under this chapter for the period of the assignment.

     ``Sec. 3705. Application to Office of the Chief Technology 
       Officer of the District of Columbia

       ``(a) In General.--The Chief Technology Officer of the 
     District of Columbia may arrange for the assignment of an 
     employee of the Office of the Chief Technology Officer to a 
     private sector organization, or an employee of a private 
     sector organization to such Office, in the same manner as the 
     head of an agency under this chapter.
       ``(b) Terms and Conditions.--An assignment made pursuant to 
     subsection (a) shall be subject to the same terms and 
     conditions as an assignment made by the head of an agency 
     under this chapter, except that in applying such terms and 
     conditions to an assignment made pursuant to subsection (a), 
     any reference in this chapter to a provision of law or 
     regulation of the United States shall be deemed to be a 
     reference to the applicable provision of law or regulation of 
     the District of Columbia, including the applicable provisions 
     of the District of Columbia Government Comprehensive Merit 
     Personnel Act of 1978 (sec. 1-601.01 et seq., D.C. Official 
     Code) and section 601 of the District of Columbia Campaign 
     Finance Reform and Conflict of Interest Act (sec. 1-1106.01, 
     D.C. Official Code).
       ``(c) Definition.--For purposes of this section, the term 
     `Office of the Chief Technology Officer' means the office 
     established in the executive branch of the government of the 
     District of Columbia under the Office of the Chief Technology 
     Officer Establishment Act of 1998 (sec. 1-1401 et seq., D.C. 
     Official Code).

     ``Sec. 3706. Reporting requirement

       ``(a) In General.--The Office of Personnel Management 
     shall, not later than April 30 and October 31 of each year, 
     prepare and submit to the Committee on Government Reform of 
     the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a semiannual report 
     summarizing the operation of this

[[Page H8952]]

     chapter during the immediately preceding 6-month period 
     ending on March 31 and September 30, respectively.
       ``(b) Content.--Each report shall include, with respect to 
     the 6-month period to which such report relates--
       ``(1) the total number of individuals assigned to, and the 
     total number of individuals assigned from, each agency during 
     such period;
       ``(2) a brief description of each assignment included under 
     paragraph (1), including--
       ``(A) the name of the assigned individual, as well as the 
     private sector organization and the agency (including the 
     specific bureau or other agency component) to or from which 
     such individual was assigned;
       ``(B) the respective positions to and from which the 
     individual was assigned, including the duties and 
     responsibilities and the pay grade or level associated with 
     each; and
       ``(C) the duration and objectives of the individual's 
     assignment; and
       ``(3) such other information as the Office considers 
     appropriate.
       ``(c) Publication.--A copy of each report submitted under 
     subsection (a)--
       ``(1) shall be published in the Federal Register; and
       ``(2) shall be made publicly available on the Internet.
       ``(d) Agency Cooperation.--On request of the Office, 
     agencies shall furnish such information and reports as the 
     Office may require in order to carry out this section.

     ``Sec. 3707. Regulations

       ``The Director of the Office of Personnel Management shall 
     prescribe regulations for the administration of this 
     chapter.''.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the General Accounting Office shall 
     prepare and submit to the Committee on Government Reform of 
     the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a report on the operation 
     of chapter 37 of title 5, United States Code (as added by 
     this subsection). Such report shall include--
       (A) an evaluation of the effectiveness of the program 
     established by such chapter; and
       (B) a recommendation as to whether such program should be 
     continued (with or without modification) or allowed to lapse.
       (3) Clerical Amendment.--The analysis for part III of title 
     5, United States Code, is amended by inserting after the item 
     relating to chapter 35 the following:

``37. Information Technology Exchange Program...................3701''.
       (d) Ethics Provisions.--
       (1) One-year restriction on certain communications.--
     Section 207(c)(2)(A) of title 18, United States Code, is 
     amended--
       (A) by striking ``or'' at the end of clause (iii);
       (B) by striking the period at the end of clause (iv) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(v) assigned from a private sector organization to an 
     agency under chapter 37 of title 5.''.
       (2) Disclosure of confidential information.--Section 1905 
     of title 18, United States Code, is amended by inserting ``or 
     being an employee of a private sector organization who is or 
     was assigned to an agency under chapter 37 of title 5,'' 
     after ``(15 U.S.C. 1311-1314),''.
       (3) Contract advice.--Section 207 of title 18, United 
     States Code, is amended by adding at the end the following:
       ``(l) Contract Advice by Former Details.--Whoever, being an 
     employee of a private sector organization assigned to an 
     agency under chapter 37 of title 5, within one year after the 
     end of that assignment, knowingly represents or aids, 
     counsels, or assists in representing any other person (except 
     the United States) in connection with any contract with that 
     agency shall be punished as provided in section 216 of this 
     title.''.
       (4) Restriction on disclosure of procurement information.--
     Section 27 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 423) is amended in subsection (a)(1) by adding at 
     the end the following new sentence: ``In the case of an 
     employee of a private sector organization assigned to an 
     agency under chapter 37 of title 5, United States Code, in 
     addition to the restriction in the preceding sentence, such 
     employee shall not, other than as provided by law, knowingly 
     disclose contractor bid or proposal information or source 
     selection information during the three-year period after the 
     end of the assignment of such employee.''.
       (e) Report on Existing Exchange Programs.--
       (1) Exchange program defined.--For purposes of this 
     subsection, the term ``exchange program'' means an executive 
     exchange program, the program under subchapter VI of chapter 
     33 of title 5, United States Code, and any other program 
     which allows for--
       (A) the assignment of employees of the Federal Government 
     to non-Federal employers;
       (B) the assignment of employees of non-Federal employers to 
     the Federal Government; or
       (C) both.
       (2) Reporting requirement.--Not later than 1 year after the 
     date of the enactment of this Act, the Office of Personnel 
     Management shall prepare and submit to the Committee on 
     Government Reform of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate a report 
     identifying all existing exchange programs.
       (3) Specific information.--The report shall, for each such 
     program, include--
       (A) a brief description of the program, including its size, 
     eligibility requirements, and terms or conditions for 
     participation;
       (B) specific citation to the law or other authority under 
     which the program is established;
       (C) the names of persons to contact for more information, 
     and how they may be reached; and
       (D) any other information which the Office considers 
     appropriate.
       (f) Report on the Establishment of a Governmentwide 
     Information Technology Training Program.--
       (1) In general.--Not later January 1, 2003, the Office of 
     Personnel Management, in consultation with the Chief 
     Information Officers Council and the Administrator of General 
     Services, shall review and submit to the Committee on 
     Government Reform of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate a written 
     report on the following:
       (A) The adequacy of any existing information technology 
     training programs available to Federal employees on a 
     Governmentwide basis.
       (B)(i) If one or more such programs already exist, 
     recommendations as to how they might be improved.
       (ii) If no such program yet exists, recommendations as to 
     how such a program might be designed and established.
       (C) With respect to any recommendations under subparagraph 
     (B), how the program under chapter 37 of title 5, United 
     States Code, might be used to help carry them out.
       (2) Cost estimate.--The report shall, for any recommended 
     program (or improvements) under paragraph (1)(B), include the 
     estimated costs associated with the implementation and 
     operation of such program as so established (or estimated 
     difference in costs of any such program as so improved).
       (g) Technical and Conforming Amendments.--
       (1) Amendments to title 5, united states code.--Title 5, 
     United States Code, is amended--
       (A) in section 3111, by adding at the end the following:
       ``(d) Notwithstanding section 1342 of title 31, the head of 
     an agency may accept voluntary service for the United States 
     under chapter 37 of this title and regulations of the Office 
     of Personnel Management.'';
       (B) in section 4108, by striking subsection (d); and
       (C) in section 7353(b), by adding at the end the following:
       ``(4) Nothing in this section precludes an employee of a 
     private sector organization, while assigned to an agency 
     under chapter 37, from continuing to receive pay and benefits 
     from such organization in accordance with such chapter.''.
       (2) Amendment to title 18, united states code.--Section 209 
     of title 18, United States Code, is amended by adding at the 
     end the following:
       ``(g)(1) This section does not prohibit an employee of a 
     private sector organization, while assigned to an agency 
     under chapter 37 of title 5, from continuing to receive pay 
     and benefits from such organization in accordance with such 
     chapter.
       ``(2) For purposes of this subsection, the term `agency' 
     means an agency (as defined by section 3701 of title 5) and 
     the Office of the Chief Technology Officer of the District of 
     Columbia.''.
       (3) Other amendments.--Section 125(c)(1) of Public Law 100-
     238 (5 U.S.C. 8432 note) is amended--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by striking ``and'' at the end and 
     inserting ``or''; and
       (C) by adding at the end the following:
       ``(D) an individual assigned from a Federal agency to a 
     private sector organization under chapter 37 of title 5, 
     United States Code; and''.

     SEC. 210. SHARE-IN-SAVINGS INITIATIVES.

       (a) Defense Contracts.--(1) Chapter 137 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2332. Share-in-savings contracts

       ``(a) Authority To Enter Into Share-in-Savings Contracts.--
     (1) The head of an agency may enter into a share-in-savings 
     contract for information technology (as defined in section 
     11101(6) of title 40) in which the Government awards a 
     contract to improve mission-related or administrative 
     processes or to accelerate the achievement of its mission and 
     share with the contractor in savings achieved through 
     contract performance.
       ``(2)(A) Except as provided in subparagraph (B), a share-
     in-savings contract shall be awarded for a period of not more 
     than five years.
       ``(B) A share-in-savings contract may be awarded for a 
     period greater than five years, but not more than 10 years, 
     if the head of the agency determines in writing prior to 
     award of the contract that--
       ``(i) the level of risk to be assumed and the investment to 
     be undertaken by the contractor is likely to inhibit the 
     government from obtaining the needed information technology 
     competitively at a fair and reasonable price if the contract 
     is limited in duration to a period of five years or less; and
       ``(ii) usage of the information technology to be acquired 
     is likely to continue for a period of time sufficient to 
     generate reasonable benefit for the government.
       ``(3) Contracts awarded pursuant to the authority of this 
     section shall, to the maximum extent practicable, be 
     performance-based contracts that identify objective outcomes 
     and contain performance standards that will be used to 
     measure achievement and milestones that must be met before 
     payment is made.
       ``(4) Contracts awarded pursuant to the authority of this 
     section shall include a provision containing a quantifiable 
     baseline that is to be the basis upon which a savings share 
     ratio is established that governs the amount of payment a 
     contractor is to receive under the contract. Before 
     commencement of performance of such a contract, the senior 
     procurement executive of the agency shall determine in 
     writing that the

[[Page H8953]]

     terms of the provision are quantifiable and will likely yield 
     value to the Government.
       ``(5)(A) The head of the agency may retain savings realized 
     through the use of a share-in-savings contract under this 
     section that are in excess of the total amount of savings 
     paid to the contractor under the contract. Except as provided 
     in subparagraph (B), savings shall be credited to the 
     appropriation or fund against which charges were made to 
     carry out the contract and shall be used for information 
     technology.
       ``(B) Amounts retained by the agency under this subsection 
     shall--
       ``(i) without further appropriation, remain available until 
     expended; and
       ``(ii) be applied first to fund any contingent liabilities 
     associated with share-in-savings procurements that are not 
     fully funded.
       ``(b) Cancellation and Termination.--(1) If funds are not 
     made available for the continuation of a share-in-savings 
     contract entered into under this section in a subsequent 
     fiscal year, the contract shall be canceled or terminated. 
     The costs of cancellation or termination may be paid out of--
       ``(A) appropriations available for the performance of the 
     contract;
       ``(B) appropriations available for acquisition of the 
     information technology procured under the contract, and not 
     otherwise obligated; or
       ``(C) funds subsequently appropriated for payments of costs 
     of cancellation or termination, subject to the limitations in 
     paragraph (3).
       ``(2) The amount payable in the event of cancellation or 
     termination of a share-in-savings contract shall be 
     negotiated with the contractor at the time the contract is 
     entered into.
       ``(3)(A) Subject to subparagraph (B), the head of an agency 
     may enter into share-in-savings contracts under this section 
     in any given fiscal year even if funds are not made 
     specifically available for the full costs of cancellation or 
     termination of the contract if funds are available and 
     sufficient to make payments with respect to the first fiscal 
     year of the contract and the following conditions are met 
     regarding the funding of cancellation and termination 
     liability:
       ``(i) The amount of unfunded contingent liability for the 
     contract does not exceed the lesser of--
       ``(I) 25 percent of the estimated costs of a cancellation 
     or termination; or
       ``(II) $5,000,000.
       ``(ii) Unfunded contingent liability in excess of 
     $1,000,000 has been approved by the Director of the Office of 
     Management and Budget or the Director's designee.
       ``(B) The aggregate number of share-in-savings contracts 
     that may be entered into under subparagraph (A) by all 
     agencies to which this chapter applies in a fiscal year--
       ``(i) may not exceed 5, in each of fiscal years 2003, 2004, 
     and 2005; and
       ``(ii) may not exceed 10, in each of fiscal years 2006, 
     2007, 2008, and 2009.
       ``(c) Definitions.--In this section:
       ``(1) The term `contractor' means a private entity that 
     enters into a contract with an agency.
       ``(2) The term `savings' means--
       ``(A) monetary savings to an agency; or
       ``(B) savings in time or other benefits realized by the 
     agency, including enhanced revenues.
       ``(3) The term `share-in-savings contract' means a contract 
     under which--
       ``(A) a contractor provides solutions for--
       ``(i) improving the agency's mission-related or 
     administrative processes; or
       ``(ii) accelerating the achievement of agency missions; and
       ``(B) the head of the agency pays the contractor an amount 
     equal to a portion of the savings derived by the agency 
     from--
       ``(i) any improvements in mission-related or administrative 
     processes that result from implementation of the solution; or
       ``(ii) acceleration of achievement of agency missions.
       ``(d) Termination.--No share-in-savings contracts may be 
     entered into under this section after September 30, 2009.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end of the following new item:

``2332. Share-in-savings contracts.''.
       (b) Other Contracts.--Title III of the Federal Property and 
     Administrative Services Act of 1949 is amended by adding at 
     the end the following:

     ``SEC. 317. SHARE-IN-SAVINGS CONTRACTS.

       ``(a) Authority To Enter Into Share-in-Savings Contracts.--
     (1) The head of an executive agency may enter into a share-
     in-savings contract for information technology (as defined in 
     section 11101(6) of title 40, United States Code) in which 
     the Government awards a contract to improve mission-related 
     or administrative processes or to accelerate the achievement 
     of its mission and share with the contractor in savings 
     achieved through contract performance.
       ``(2)(A) Except as provided in subparagraph (B), a share-
     in-savings contract shall be awarded for a period of not more 
     than five years.
       ``(B) A share-in-savings contract may be awarded for a 
     period greater than five years, but not more than 10 years, 
     if the head of the agency determines in writing prior to 
     award of the contract that--
       ``(i) the level of risk to be assumed and the investment to 
     be undertaken by the contractor is likely to inhibit the 
     government from obtaining the needed information technology 
     competitively at a fair and reasonable price if the contract 
     is limited in duration to a period of five years or less; and
       ``(ii) usage of the information technology to be acquired 
     is likely to continue for a period of time sufficient to 
     generate reasonable benefit for the government.
       ``(3) Contracts awarded pursuant to the authority of this 
     section shall, to the maximum extent practicable, be 
     performance-based contracts that identify objective outcomes 
     and contain performance standards that will be used to 
     measure achievement and milestones that must be met before 
     payment is made.
       ``(4) Contracts awarded pursuant to the authority of this 
     section shall include a provision containing a quantifiable 
     baseline that is to be the basis upon which a savings share 
     ratio is established that governs the amount of payment a 
     contractor is to receive under the contract. Before 
     commencement of performance of such a contract, the senior 
     procurement executive of the agency shall determine in 
     writing that the terms of the provision are quantifiable and 
     will likely yield value to the Government.
       ``(5)(A) The head of the agency may retain savings realized 
     through the use of a share-in-savings contract under this 
     section that are in excess of the total amount of savings 
     paid to the contractor under the contract. Except as provided 
     in subparagraph (B), savings shall be credited to the 
     appropriation or fund against which charges were made to 
     carry out the contract and shall be used for information 
     technology.
       ``(B) Amounts retained by the agency under this subsection 
     shall--
       ``(i) without further appropriation, remain available until 
     expended; and
       ``(ii) be applied first to fund any contingent liabilities 
     associated with share-in-savings procurements that are not 
     fully funded.
       ``(b) Cancellation and Termination.--(1) If funds are not 
     made available for the continuation of a share-in-savings 
     contract entered into under this section in a subsequent 
     fiscal year, the contract shall be canceled or terminated. 
     The costs of cancellation or termination may be paid out of--
       ``(A) appropriations available for the performance of the 
     contract;
       ``(B) appropriations available for acquisition of the 
     information technology procured under the contract, and not 
     otherwise obligated; or
       ``(C) funds subsequently appropriated for payments of costs 
     of cancellation or termination, subject to the limitations in 
     paragraph (3).
       ``(2) The amount payable in the event of cancellation or 
     termination of a share-in-savings contract shall be 
     negotiated with the contractor at the time the contract is 
     entered into.
       ``(3)(A) Subject to subparagraph (B), the head of an 
     executive agency may enter into share-in-savings contracts 
     under this section in any given fiscal year even if funds are 
     not made specifically available for the full costs of 
     cancellation or termination of the contract if funds are 
     available and sufficient to make payments with respect to the 
     first fiscal year of the contract and the following 
     conditions are met regarding the funding of cancellation and 
     termination liability:
       ``(i) The amount of unfunded contingent liability for the 
     contract does not exceed the lesser of--
       ``(I) 25 percent of the estimated costs of a cancellation 
     or termination; or
       ``(II) $5,000,000.
       ``(ii) Unfunded contingent liability in excess of 
     $1,000,000 has been approved by the Director of the Office of 
     Management and Budget or the Director's designee.
       ``(B) The aggregate number of share-in-savings contracts 
     that may be entered into under subparagraph (A) by all 
     executive agencies to which this chapter applies in a fiscal 
     year--
       ``(i) may not exceed 5, in each of fiscal years 2003, 2004, 
     and 2005; and
       ``(ii) may not exceed 10, in each of fiscal years 2006, 
     2007, 2008, and 2009.
       ``(c) Definitions.--In this section:
       ``(1) The term `contractor' means a private entity that 
     enters into a contract with an agency.
       ``(2) The term `savings' means--
       ``(A) monetary savings to an agency; or
       ``(B) savings in time or other benefits realized by the 
     agency, including enhanced revenues.
       ``(3) The term `share-in-savings contract' means a contract 
     under which--
       ``(A) a contractor provides solutions for--
       ``(i) improving the agency's mission-related or 
     administrative processes; or
       ``(ii) accelerating the achievement of agency missions; and
       ``(B) the head of the agency pays the contractor an amount 
     equal to a portion of the savings derived by the agency 
     from--
       ``(i) any improvements in mission-related or administrative 
     processes that result from implementation of the solution; or
       ``(ii) acceleration of achievement of agency missions.
       ``(d) Termination.--No share-in-savings contracts may be 
     entered into under this section after September 30, 2009.''.
       (c) Development of Incentives.--The Director of the Office 
     of Management and Budget shall, in consultation with the 
     Committee on Governmental Affairs of the Senate, the 
     Committee on Government Reform of the House of 
     Representatives, and executive agencies, develop techniques 
     to permit an executive agency to retain a portion of the 
     savings (after payment of the contractor's share of the 
     savings) derived from share-in-savings contracts as funds are 
     appropriated to the agency in future fiscal years.
       (d) Regulations.--Not later than 270 days after the date of 
     the enactment of this Act, the Federal Acquisition Regulation 
     shall be revised to implement the provisions enacted by this 
     section. Such revisions shall--
       (1) provide for the use of competitive procedures in the 
     selection and award of share-in-savings contracts to--
       (A) ensure the contractor's share of savings reflects the 
     risk involved and market conditions; and
       (B) otherwise yield greatest value to the government; and
       (2) allow appropriate regulatory flexibility to facilitate 
     the use of share-in-savings contracts

[[Page H8954]]

     by executive agencies, including the use of innovative 
     provisions for technology refreshment and nonstandard Federal 
     Acquisition Regulation contract clauses.
       (e) Additional Guidance.--The Administrator of General 
     Services shall--
       (1) identify potential opportunities for the use of share-
     in-savings contracts; and
       (2) in consultation with the Director of the Office of 
     Management and Budget, provide guidance to executive agencies 
     for determining mutually beneficial savings share ratios and 
     baselines from which savings may be measured.
       (f) OMB Report to Congress.--In consultation with executive 
     agencies, the Director of the Office of Management and Budget 
     shall, not later than 2 years after the date of the enactment 
     of this Act, submit to Congress a report containing--
       (1) a description of the number of share-in-savings 
     contracts entered into by each executive agency under by this 
     section and the amendments made by this section, and, for 
     each contract identified--
       (A) the information technology acquired;
       (B) the total amount of payments made to the contractor; 
     and
       (C) the total amount of savings or other measurable 
     benefits realized;
       (2) a description of the ability of agencies to determine 
     the baseline costs of a project against which savings can be 
     measured; and
       (3) any recommendations, as the Director deems appropriate, 
     regarding additional changes in law that may be necessary to 
     ensure effective use of share-in-savings contracts by 
     executive agencies.
       (g) GAO Report to Congress.--The Comptroller General shall, 
     not later than 6 months after the report required under 
     subsection (f) is submitted to Congress, conduct a review of 
     that report and submit to Congress a report containing--
       (1) the results of the review; and
       (2) any recommendations, as the Comptroller General deems 
     appropriate, on the use of share-in-savings contracts by 
     executive agencies.
       (h) Definitions.--In this section, the terms 
     ``contractor'', ``savings'', and ``share-in-savings 
     contract'' have the meanings given those terms in section 317 
     of the Federal Property and Administrative Services Act of 
     1949 (as added by subsection (b)).

     SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION 
                   TECHNOLOGY BY STATE AND LOCAL GOVERNMENTS 
                   THROUGH FEDERAL SUPPLY SCHEDULES.

       (a) Authority To Use Certain Supply Schedules.--Section 502 
     of title 40, United States Code, is amended by adding at the 
     end the following new subsection:
       ``(c) Use of Certain Supply Schedules.--
       ``(1) In general.--The Administrator may provide for the 
     use by State or local governments of Federal supply schedules 
     of the General Services Administration for automated data 
     processing equipment (including firmware), software, 
     supplies, support equipment, and services (as contained in 
     Federal supply classification code group 70).
       ``(2) Voluntary use.--In any case of the use by a State or 
     local government of a Federal supply schedule pursuant to 
     paragraph (1), participation by a firm that sells to the 
     Federal Government through the supply schedule shall be 
     voluntary with respect to a sale to the State or local 
     government through such supply schedule.
       ``(3) Definitions.--In this subsection:
       ``(A) The term `State or local government' includes any 
     State, local, regional, or tribal government, or any 
     instrumentality thereof (including any local educational 
     agency or institution of higher education).
       ``(B) The term `tribal government' means a tribal 
     organization, as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(C) The term `local educational agency' has the meaning 
     given that term in section 8013 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713).
       ``(D) The term `institution of higher education' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1001(a)).''.
       (b) Procedures.--Not later than 30 days after the date of 
     the enactment of this Act, the Administrator of General 
     Services shall establish procedures to implement section 
     501(c) of title 40, United States Code (as added by 
     subsection (a)).
       (c) Report.--Not later than December 31, 2004, the 
     Administrator shall submit to the Committee on Government 
     Reform of the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a report on the 
     implementation and effects of the amendment made by 
     subsection (a).

     SEC. 212. INTEGRATED REPORTING STUDY AND PILOT PROJECTS.

       (a) Purposes.--The purposes of this section are to--
       (1) enhance the interoperability of Federal information 
     systems;
       (2) assist the public, including the regulated community, 
     in electronically submitting information to agencies under 
     Federal requirements, by reducing the burden of duplicate 
     collection and ensuring the accuracy of submitted 
     information; and
       (3) enable any person to integrate and obtain similar 
     information held by 1 or more agencies under 1 or more 
     Federal requirements without violating the privacy rights of 
     an individual.
       (b) Definitions.--In this section, the term--
       (1) ``agency'' means an Executive agency as defined under 
     section 105 of title 5, United States Code; and
       (2) ``person'' means any individual, trust, firm, joint 
     stock company, corporation (including a government 
     corporation), partnership, association, State, municipality, 
     commission, political subdivision of a State, interstate 
     body, or agency or component of the Federal Government.
       (c) Report.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Director shall oversee a study, in 
     consultation with agencies, the regulated community, public 
     interest organizations, and the public, and submit a report 
     to the Committee on Governmental Affairs of the Senate and 
     the Committee on Government Reform of the House of 
     Representatives on progress toward integrating Federal 
     information systems across agencies.
       (2) Contents.--The report under this section shall--
       (A) address the integration of data elements used in the 
     electronic collection of information within databases 
     established under Federal statute without reducing the 
     quality, accessibility, scope, or utility of the information 
     contained in each database;
       (B) address the feasibility of developing, or enabling the 
     development of, software, including Internet-based tools, for 
     use by reporting persons in assembling, documenting, and 
     validating the accuracy of information electronically 
     submitted to agencies under nonvoluntary, statutory, and 
     regulatory requirements;
       (C) address the feasibility of developing a distributed 
     information system involving, on a voluntary basis, at least 
     2 agencies, that--
       (i) provides consistent, dependable, and timely public 
     access to the information holdings of 1 or more agencies, or 
     some portion of such holdings, without requiring public users 
     to know which agency holds the information; and
       (ii) allows the integration of public information held by 
     the participating agencies;
       (D) address the feasibility of incorporating other elements 
     related to the purposes of this section at the discretion of 
     the Director; and
       (E) make any recommendations that the Director deems 
     appropriate on the use of integrated reporting and 
     information systems, to reduce the burden on reporting and 
     strengthen public access to databases within and across 
     agencies.
       (d) Pilot Projects To Encourage Integrated Collection and 
     Management of Data and Interoperability of Federal 
     Information Systems.--
       (1) In general.--In order to provide input to the study 
     under subsection (c), the Director shall designate, in 
     consultation with agencies, a series of no more than 5 pilot 
     projects that integrate data elements. The Director shall 
     consult with agencies, the regulated community, public 
     interest organizations, and the public on the implementation 
     of the pilot projects.
       (2) Goals of pilot projects.--
       (A) In general.--Each goal described under subparagraph (B) 
     shall be addressed by at least 1 pilot project each.
       (B) Goals.--The goals under this paragraph are to--
       (i) reduce information collection burdens by eliminating 
     duplicative data elements within 2 or more reporting 
     requirements;
       (ii) create interoperability between or among public 
     databases managed by 2 or more agencies using technologies 
     and techniques that facilitate public access; and
       (iii) develop, or enable the development of, software to 
     reduce errors in electronically submitted information.
       (3) Input.--Each pilot project shall seek input from users 
     on the utility of the pilot project and areas for 
     improvement. To the extent practicable, the Director shall 
     consult with relevant agencies and State, tribal, and local 
     governments in carrying out the report and pilot projects 
     under this section.
       (e) Protections.--The activities authorized under this 
     section shall afford protections for--
       (1) confidential business information consistent with 
     section 552(b)(4) of title 5, United States Code, and other 
     relevant law;
       (2) personal privacy information under sections 552(b) (6) 
     and (7)(C) and 552a of title 5, United States Code, and other 
     relevant law;
       (3) other information consistent with section 552(b)(3) of 
     title 5, United States Code, and other relevant law; and
       (4) confidential statistical information collected under a 
     confidentiality pledge, solely for statistical purposes, 
     consistent with the Office of Management and Budget's Federal 
     Statistical Confidentiality Order, and other relevant law.

     SEC. 213. COMMUNITY TECHNOLOGY CENTERS.

       (a) Purposes.--The purposes of this section are to--
       (1) study and enhance the effectiveness of community 
     technology centers, public libraries, and other institutions 
     that provide computer and Internet access to the public; and
       (2) promote awareness of the availability of on-line 
     government information and services, to users of community 
     technology centers, public libraries, and other public 
     facilities that provide access to computer technology and 
     Internet access to the public.
       (b) Study and Report.--Not later than 2 years after the 
     effective date of this title, the Administrator shall--
       (1) conduct a study to evaluate the best practices of 
     community technology centers that have received Federal 
     funds; and
       (2) submit a report on the study to--
       (A) the Committee on Governmental Affairs of the Senate;
       (B) the Committee on Health, Education, Labor, and Pensions 
     of the Senate;
       (C) the Committee on Government Reform of the House of 
     Representatives; and
       (D) the Committee on Education and the Workforce of the 
     House of Representatives.
       (c) Contents.--The report under subsection (b) may 
     consider--
       (1) an evaluation of the best practices being used by 
     successful community technology centers;

[[Page H8955]]

       (2) a strategy for--
       (A) continuing the evaluation of best practices used by 
     community technology centers; and
       (B) establishing a network to share information and 
     resources as community technology centers evolve;
       (3) the identification of methods to expand the use of best 
     practices to assist community technology centers, public 
     libraries, and other institutions that provide computer and 
     Internet access to the public;
       (4) a database of all community technology centers that 
     have received Federal funds, including--
       (A) each center's name, location, services provided, 
     director, other points of contact, number of individuals 
     served; and
       (B) other relevant information;
       (5) an analysis of whether community technology centers 
     have been deployed effectively in urban and rural areas 
     throughout the Nation; and
       (6) recommendations of how to--
       (A) enhance the development of community technology 
     centers; and
       (B) establish a network to share information and resources.
       (d) Cooperation.--All agencies that fund community 
     technology centers shall provide to the Administrator any 
     information and assistance necessary for the completion of 
     the study and the report under this section.
       (e) Assistance.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Education, shall work with other relevant 
     Federal agencies, and other interested persons in the private 
     and nonprofit sectors to--
       (A) assist in the implementation of recommendations; and
       (B) identify other ways to assist community technology 
     centers, public libraries, and other institutions that 
     provide computer and Internet access to the public.
       (2) Types of assistance.--Assistance under this subsection 
     may include--
       (A) contribution of funds;
       (B) donations of equipment, and training in the use and 
     maintenance of the equipment; and
       (C) the provision of basic instruction or training material 
     in computer skills and Internet usage.
       (f) Online Tutorial.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Education, the Director of the Institute of 
     Museum and Library Services, other relevant agencies, and the 
     public, shall develop an online tutorial that--
       (A) explains how to access Government information and 
     services on the Internet; and
       (B) provides a guide to available online resources.
       (2) Distribution.--The Administrator, with assistance from 
     the Secretary of Education, shall distribute information on 
     the tutorial to community technology centers, public 
     libraries, and other institutions that afford Internet access 
     to the public.
       (g) Promotion of Community Technology Centers.--The 
     Administrator, with assistance from the Department of 
     Education and in consultation with other agencies and 
     organizations, shall promote the availability of community 
     technology centers to raise awareness within each community 
     where such a center is located.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated for the study of best practices at 
     community technology centers, for the development and 
     dissemination of the online tutorial, and for the promotion 
     of community technology centers under this section--
       (1) $2,000,000 in fiscal year 2003;
       (2) $2,000,000 in fiscal year 2004; and
       (3) such sums as are necessary in fiscal years 2005 through 
     2007.

     SEC. 214. ENHANCING CRISIS MANAGEMENT THROUGH ADVANCED 
                   INFORMATION TECHNOLOGY.

       (a) Purpose.--The purpose of this section is to improve how 
     information technology is used in coordinating and 
     facilitating information on disaster preparedness, response, 
     and recovery, while ensuring the availability of such 
     information across multiple access channels.
       (b) In General.--
       (1) Study on enhancement of crisis response.--Not later 
     than 90 days after the date of enactment of this Act, the 
     Administrator, in consultation with the Federal Emergency 
     Management Agency, shall enter into a contract to conduct a 
     study on using information technology to enhance crisis 
     preparedness, response, and consequence management of natural 
     and manmade disasters.
       (2) Contents.--The study under this subsection shall 
     address--
       (A) a research and implementation strategy for effective 
     use of information technology in crisis response and 
     consequence management, including the more effective use of 
     technologies, management of information technology research 
     initiatives, and incorporation of research advances into the 
     information and communications systems of--
       (i) the Federal Emergency Management Agency; and
       (ii) other Federal, State, and local agencies responsible 
     for crisis preparedness, response, and consequence 
     management; and
       (B) opportunities for research and development on enhanced 
     technologies into areas of potential improvement as 
     determined during the course of the study.
       (3) Report.--Not later than 2 years after the date on which 
     a contract is entered into under paragraph (1), the 
     Administrator shall submit a report on the study, including 
     findings and recommendations to--
       (A) the Committee on Governmental Affairs of the Senate; 
     and
       (B) the Committee on Government Reform of the House of 
     Representatives.
       (4) Interagency cooperation.--Other Federal departments and 
     agencies with responsibility for disaster relief and 
     emergency assistance shall fully cooperate with the 
     Administrator in carrying out this section.
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated for research under this subsection, such 
     sums as are necessary for fiscal year 2003.
       (c) Pilot Projects.--Based on the results of the research 
     conducted under subsection (b), the Administrator, in 
     consultation with the Federal Emergency Management Agency, 
     shall initiate pilot projects or report to Congress on other 
     activities that further the goal of maximizing the utility of 
     information technology in disaster management. The 
     Administrator shall cooperate with other relevant agencies, 
     and, if appropriate, State, local, and tribal governments, in 
     initiating such pilot projects.

     SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET.

       (a) Study and Report.--
       (1) Study.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator of General Services 
     shall request that the National Academy of Sciences, acting 
     through the National Research Council, enter into a contract 
     to conduct a study on disparities in Internet access for 
     online Government services.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator of General Services 
     shall submit to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives a final report of the study under this 
     section, which shall set forth the findings, conclusions, and 
     recommendations of the National Research Council.
       (b) Contents.--The report under subsection (a) shall 
     include a study of--
       (1) how disparities in Internet access influence the 
     effectiveness of online Government services, including a 
     review of--
       (A) the nature of disparities in Internet access;
       (B) the affordability of Internet service;
       (C) the incidence of disparities among different groups 
     within the population; and
       (D) changes in the nature of personal and public Internet 
     access that may alleviate or aggravate effective access to 
     online Government services;
       (2) how the increase in online Government services is 
     influencing the disparities in Internet access and how 
     technology development or diffusion trends may offset such 
     adverse influences; and
       (3) related societal effects arising from the interplay of 
     disparities in Internet access and the increase in online 
     Government services.
       (c) Recommendations.--The report shall include 
     recommendations on actions to ensure that online Government 
     initiatives shall not have the unintended result of 
     increasing any deficiency in public access to Government 
     services.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated $950,000 in fiscal year 2003 to carry out 
     this section.

                    TITLE III--INFORMATION SECURITY

     SEC. 301. 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; and

[[Page H8956]]

       ``(C) availability, which means ensuring timely and 
     reliable access to and use of information;
       ``(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--
       ``(A) the function, operation, or use of which--
       ``(i) involves intelligence activities;
       ``(ii) involves cryptologic activities related to national 
     security;
       ``(iii) involves command and control of military forces;
       ``(iv) involves equipment that is an integral part of a 
     weapon or weapons system; or
       ``(v) is critical to the direct fulfillment of military or 
     intelligence missions,
     except that this subparagraph does not include a system that 
     is used for routine administrative and business applications 
     (including payroll, finance, logistics, and personnel 
     management applications); or
       ``(B) is protected at all times by procedures established 
     for information that have been specifically authorized under 
     criteria established by an Executive order or an Act of 
     Congress to be kept classified in the interest of national 
     defense or foreign policy; and
       ``(3) the term `information technology' has the meaning 
     given that term in section 11101 of title 40.

     ``Sec. 3533. Authority and functions of the Director

       ``(a) The Director shall oversee agency information 
     security policies and practices, including--
       ``(1) developing and overseeing the implementation of 
     policies, principles, standards, and guidelines on 
     information security, including through the promulgation of 
     standards and guidelines under section 11331 of title 40;
       ``(2) 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;
       ``(3) 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;
       ``(4) overseeing agency compliance with the requirements of 
     this subchapter, including through any authorized action 
     under section 11303 of title 40, to enforce accountability 
     for compliance with such requirements;
       ``(5) reviewing at least annually, and approving or 
     disapproving, agency information security programs required 
     under section 3534(b);
       ``(6) coordinating information security policies and 
     procedures with related information resources management 
     policies and procedures;
       ``(7) overseeing the operation of the Federal information 
     security incident center required under section 3536; and
       ``(8) reporting to Congress no later than March 1 of each 
     year on agency compliance with the requirements of this 
     subchapter, including--
       ``(A) a summary of the findings of evaluations required by 
     section 3535;
       ``(B) significant deficiencies in agency information 
     security practices;
       ``(C) planned remedial action to address such deficiencies; 
     and
       ``(D) a summary of, and the views of the Director on, the 
     report prepared by the National Institute of Standards and 
     Technology under section 20(e)(7) 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 (8) 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, consistent with standards and 
     guidelines issued pursuant to section 3536(b), including--
       ``(A) mitigating risks associated with such incidents 
     before substantial damage is done;

[[Page H8957]]

       ``(B) notifying and consulting with the Federal information 
     security incident center referred to in section 3536; and
       ``(C) 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, (known as the `Federal Managers 
     Financial Integrity Act'); and
       ``(3) report any significant deficiency in a policy, 
     procedure, or practice identified under paragraph (1) or 
     (2)--
       ``(A) as a material weakness in reporting under section 
     3512 of title 31; and
       ``(B) if relating to financial management systems, as an 
     instance of a lack of substantial compliance under the 
     Federal Financial Management Improvement Act (31 U.S.C. 3512 
     note).
       ``(d)(1) In addition to the requirements of subsection (c), 
     each agency, in consultation with the Director, shall include 
     as part of the performance plan required under section 1115 
     of title 31 a description of--
       ``(A) the time periods, and
       ``(B) the resources, including budget, staffing, and 
     training,
     that are necessary to implement the program required under 
     subsection (b).
       ``(2) The description under paragraph (1) shall be based on 
     the risk assessments required under subsection (b)(2)(1).
       ``(e) Each agency shall provide the public with timely 
     notice and opportunities for comment on proposed information 
     security policies and procedures to the extent that such 
     policies and procedures affect communication with the public.

     ``Sec. 3535. Annual independent evaluation

       ``(a)(1) Each year each agency shall have performed an 
     independent evaluation of the information security program 
     and practices of that agency to determine the effectiveness 
     of such program and practices.
       ``(2) Each evaluation by an agency under this section shall 
     include--
       ``(A) testing of the effectiveness of information security 
     policies, procedures, and practices of a representative 
     subset of the agency's information systems;
       ``(B) an assessment (made on the basis of the results of 
     the testing) of compliance with--
       ``(i) the requirements of this subchapter; and
       ``(ii) related information security policies, procedures, 
     standards, and guidelines; and
       ``(C) separate presentations, as appropriate, regarding 
     information security relating to national security systems.
       ``(b) Subject to subsection (c)--
       ``(1) for each agency with an Inspector General appointed 
     under the Inspector General Act of 1978, the annual 
     evaluation required by this section shall be performed by the 
     Inspector General or by an independent external auditor, as 
     determined by the Inspector General of the agency; and
       ``(2) for each agency to which paragraph (1) does not 
     apply, the head of the agency shall engage an independent 
     external auditor to perform the evaluation.
       ``(c) For each agency operating or exercising control of a 
     national security system, that portion of the evaluation 
     required by this section directly relating to a national 
     security system shall be performed--
       ``(1) only by an entity designated by the agency head; and
       ``(2) in such a manner as to ensure appropriate protection 
     for information associated with any information security 
     vulnerability in such system commensurate with the risk and 
     in accordance with all applicable laws.
       ``(d) The evaluation required by this section may be based 
     in whole or in part on an audit, evaluation, or report 
     relating to programs or practices of the applicable agency.
       ``(e)(1) 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.
       ``(2) To the extent an evaluation required under this 
     section directly relates to a national security system, the 
     evaluation results submitted to the Director shall contain 
     only a summary and assessment of that portion of the 
     evaluation directly relating to a national security system.
       ``(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. Federal information security incident center

       ``(a) The Director shall ensure the operation of a central 
     Federal information security incident center to--
       ``(1) provide timely technical assistance to operators of 
     agency information systems regarding security incidents, 
     including guidance on detecting and handling information 
     security incidents;
       ``(2) compile and analyze information about incidents that 
     threaten information security;
       ``(3) inform operators of agency information systems about 
     current and potential information security threats, and 
     vulnerabilities; and
       ``(4) consult with agencies or offices operating or 
     exercising control of national security systems (including 
     the National Security Agency) and such other agencies or 
     offices in accordance with law and as directed by the 
     President regarding information security incidents and 
     related matters.
       ``(b) Each agency operating or exercising control of a 
     national security system shall share information about 
     information security incidents, threats, and vulnerabilities 
     with the Federal information security incident center to the 
     extent consistent with standards and guidelines for national 
     security systems, issued in accordance with law and as 
     directed by the President.

     ``Sec. 3537. 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. 3538. 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. 3539. 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 the 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--INFORMATION SECURITY'' 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. Federal information security incident center.
``3537. National security systems.
``3538. Authorization of appropriations.
``3539. 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

[[Page H8958]]

     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(b)(2) of title 44, United States 
     Code.
       (B) Section 2224 of title 10, United States Code, is 
     amended--
       (i) in subsection (b), by striking ``(b) Objectives and 
     Minimum Requirements.--(1)'' and inserting ``(b) Objectives 
     of the Program.--'';
       (ii) in subsection (b), by striking paragraph (2); and
       (iii) in subsection (c), in the matter preceding paragraph 
     (1), 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. 302. 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) Information Security Standards.--
       ``(1) In general.--(A) 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 
     paragraph (3) of section 20(a) of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278g-3(a)), 
     promulgate information security standards pertaining to 
     Federal information systems.
       ``(B) 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) Information security standards described under 
     subparagraph (B) shall be compulsory and binding.
       ``(2) National security systems.--Standards and guidelines 
     for national security systems under this subsection shall be 
     developed, promulgated, enforced, and overseen as otherwise 
     authorized by law and as directed by the President.
       ``(3) Agency head authority.--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 subsection, if such 
     standards--
       ``(A) contain, at a minimum, the provisions of those 
     applicable standards made compulsory and binding by the 
     Director; and
       ``(B) are otherwise consistent with policies and guidelines 
     issued under section 3533 of title 44.
       ``(4) Decisions on promulgation of standards.--(A) The 
     decision regarding the promulgation of any standard by the 
     Director under paragraphs (1) and (2) 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).
       ``(B) A decision by the Director to significantly modify, 
     or not promulgate, a proposed standard submitted to the 
     Director by the National Institute of Standards and 
     Technology, as provided under section 20 of the National 
     Institute of Standards and Technology Act (15 U.S.C. 278g-3), 
     shall be made after the public is given an opportunity to 
     comment on the Director's proposed decision.
       ``(b) Additional Standards Relating to Federal Information 
     Systems.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the Secretary of Commerce shall, on the basis of proposed 
     standards developed by the National Institute of Standards 
     and Technology pursuant to paragraph (2) 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 Director of 
     the Office of Management and Budget, promulgate standards 
     pertaining to Federal information systems. The Secretary 
     shall make such standards compulsory and binding to the 
     extent that the Secretary determines necessary to improve the 
     efficiency and effectiveness of the operation of Federal 
     information systems.
       ``(2) National security systems.--Standards and guidelines 
     for national security systems under this subsection shall be 
     developed, promulgated, enforced, and overseen as otherwise 
     authorized by law and as directed by the President.
       ``(3) Authority of Secretary.--The authority conferred upon 
     the Secretary of Commerce by this subsection shall be 
     exercised subject to direction by the President and in 
     coordination with the Director of the Office of Management 
     and Budget to ensure fiscal and policy consistency.
       ``(4) Agency head authority.--The head of an agency may 
     employ standards for information systems that are more 
     stringent than the standards promulgated by the Secretary of 
     Commerce under this subsection, if such standards contain, at 
     a minimum, the provisions of those applicable standards made 
     compulsory and binding by the Secretary of Commerce.
       ``(c) Definitions.--In this section:
       ``(1) Federal information system.--The term `Federal 
     information system' means an information system used or 
     operated by an agency, by a contractor of an agency, or by 
     another organization on behalf of an agency.
       ``(2) Information security.--The term `information 
     security' has the meaning given that term in section 
     3532(b)(1) of title 44.
       ``(3) National security system.--The term `national 
     security system' has the meaning given that term in section 
     3532(b)(2) of title 44.''.
       (b) Clerical Amendment.--The item relating to section 11331 
     in the table of sections at the beginning of chapter 113 of 
     such title is amended to read as follows:

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

     SEC. 303. 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); and
       ``(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.
       ``(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 and the 
     private sector (including 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 section;
       ``(5) ensure that such standards and guidelines do not 
     specify the use or procurement of certain products, including 
     any specific hardware or software;
       ``(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)(1) There is established in the Institute an Office 
     for Information Security Programs.
       ``(2) The Office for Information Security Programs shall be 
     headed by a Director, who shall be a senior executive and 
     shall be compensated at a level in the Senior Executive 
     Service under section 5382 of title 5, United States Code, as 
     determined by the Secretary of Commerce.
       ``(3) The Director of the Institute shall delegate to the 
     Director of the Office of Information Security Programs the 
     authority to administer all functions under this section, 
     except that any such delegation shall not relieve the 
     Director of the Institute of responsibility for the 
     administration of such functions. The Director of the Office 
     of Information Security Programs shall serve as principal 
     adviser to the Director of the Institute on all functions 
     under this section.

[[Page H8959]]

       ``(e) 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.
       ``(f) 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(b)(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 title 44, United 
     States Code.
       ``(g) There are authorized to be appropriated to the 
     Secretary of Commerce $20,000,000 for each of fiscal years 
     2003, 2004, 2005, 2006, and 2007 to enable the National 
     Institute of Standards and Technology to carry out the 
     provisions of this section.''.

     SEC. 304. 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. 305. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Computer Security Act.--Subsections (b) and (c) of 
     section 11332 of title 40, United States Code, are repealed.
       (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 section 1062 (44 U.S.C. 3531 note).
       (c) Paperwork Reduction Act.--(1) Section 3504(g) of title 
     44, United States Code, is amended--
       (A) by adding ``and'' at the end of paragraph (1);
       (B) in paragraph (2)--
       (i) by striking ``sections 11331 and 11332(b) and (c) of 
     title 40'' and inserting ``section 11331 of title 40 and 
     subchapter II of this chapter''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking paragraph (3).
       (2) Section 3505 of such title is amended by adding at the 
     end--
       ``(c)(1) The head of each agency shall develop and maintain 
     an inventory of major information systems (including major 
     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. 306. CONSTRUCTION.

       Nothing in this title, or the amendments made by this 
     title, 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 IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES

     SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       Except for those purposes for which an authorization of 
     appropriations is specifically provided in title I or II, 
     including the amendments made by such titles, there are 
     authorized to be appropriated such sums as are necessary to 
     carry out titles I and II for each of fiscal years 2003 
     through 2007.

     SEC. 402. EFFECTIVE DATES.

       (a) Titles I and II.--
       (1) In general.--Except as provided under paragraph (2), 
     titles I and II and the amendments made by such titles shall 
     take effect 120 days after the date of enactment of this Act.
       (2) Immediate enactment.--Sections 207, 214, and 215 shall 
     take effect on the date of enactment of this Act.
       (b) Titles III and IV.--Title III and this title shall take 
     effect on the date of enactment of this Act.

TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Confidential Information 
     Protection and Statistical Efficiency Act of 2002''.

     SEC. 502. DEFINITIONS.

       As used in this title:
       (1) The term ``agency'' means any entity that falls within 
     the definition of the term ``executive agency'' as defined in 
     section 102 of title 31, United States Code, or ``agency'', 
     as defined in section 3502 of title 44, United States Code.
       (2) The term ``agent''--
       (A) means an employee of a private organization or a 
     researcher affiliated with an institution of higher learning 
     (including a person granted special sworn status by the 
     Bureau of the Census under section 23(c) of title 13, United 
     States Code) with whom a contract or other agreement is 
     executed, on a temporary basis, by an executive agency to 
     perform exclusively statistical activities under the control 
     and supervision of an officer or employee of that agency; or
       (B) means an individual who is working under the authority 
     of a government entity with which a contract or other 
     agreement is executed by an executive agency to perform 
     exclusively statistical activities under the control of an 
     officer or employee of that agency; or
       (C) means an individual who is a self-employed researcher, 
     a consultant, or a contractor, or who is an employee of a 
     contractor and with whom a contract or other agreement is 
     executed by an executive agency to perform a statistical 
     activity under the control of an officer or employee of that 
     agency; or
       (D) means an individual who is a contractor or who is an 
     employee of a contractor engaged by the agency to design or 
     maintain the systems for handling or storage of data received 
     under this title; and

[[Page H8960]]

       (E) who agrees in writing to comply with all provisions of 
     law that affect information acquired by that agency.
       (3) The term ``business data'' means operating and 
     financial data and information about businesses, tax-exempt 
     organizations, and government entities.
       (4) The term ``identifiable form'' means any representation 
     of information that permits the identity of the respondent to 
     whom the information applies to be reasonably inferred by 
     either direct or indirect means.
       (5) The term ``nonstatistical purpose''--
       (A) means the use of data in identifiable form for any 
     purpose that is not a statistical purpose, including any 
     administrative, regulatory, law enforcement, adjudicatory, or 
     other purpose that affects the rights, privileges, or 
     benefits of a particular identifiable respondent; and
       (B) includes the disclosure under section 552 of title 5, 
     United States Code (popularly known as the Freedom of 
     Information Act) of data that are acquired for exclusively 
     statistical purposes under a pledge of confidentiality.
       (6) The term ``respondent'' means a person who, or 
     organization that, is requested or required to supply 
     information to an agency, is the subject of information 
     requested or required to be supplied to an agency, or 
     provides that information to an agency.
       (7) The term ``statistical activities''--
       (A) means the collection, compilation, processing, or 
     analysis of data for the purpose of describing or making 
     estimates concerning the whole, or relevant groups or 
     components within, the economy, society, or the natural 
     environment; and
       (B) includes the development of methods or resources that 
     support those activities, such as measurement methods, 
     models, statistical classifications, or sampling frames.
       (8) The term ``statistical agency or unit'' means an agency 
     or organizational unit of the executive branch whose 
     activities are predominantly the collection, compilation, 
     processing, or analysis of information for statistical 
     purposes.
       (9) The term ``statistical purpose''--
       (A) means the description, estimation, or analysis of the 
     characteristics of groups, without identifying the 
     individuals or organizations that comprise such groups; and
       (B) includes the development, implementation, or 
     maintenance of methods, technical or administrative 
     procedures, or information resources that support the 
     purposes described in subparagraph (A).

     SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES.

       (a) In General.--The Director of the Office of Management 
     and Budget shall coordinate and oversee the confidentiality 
     and disclosure policies established by this title. The 
     Director may promulgate rules or provide other guidance to 
     ensure consistent interpretation of this title by the 
     affected agencies.
       (b) Agency Rules.--Subject to subsection (c), agencies may 
     promulgate rules to implement this title. Rules governing 
     disclosures of information that are authorized by this title 
     shall be promulgated by the agency that originally collected 
     the information.
       (c) Review and Approval of Rules.--The Director shall 
     review any rules proposed by an agency pursuant to this title 
     for consistency with the provisions of this title and chapter 
     35 of title 44, United States Code, and such rules shall be 
     subject to the approval of the Director.
       (d) Reports.--
       (1) The head of each agency shall provide to the Director 
     of the Office of Management and Budget such reports and other 
     information as the Director requests.
       (2) Each Designated Statistical Agency referred to in 
     section 522 shall report annually to the Director of the 
     Office of Management and Budget, the Committee on Government 
     Reform of the House of Representatives, and the Committee on 
     Governmental Affairs of the Senate on the actions it has 
     taken to implement sections 523 and 524. The report shall 
     include copies of each written agreement entered into 
     pursuant to section 524(a) for the applicable year.
       (3) The Director of the Office of Management and Budget 
     shall include a summary of reports submitted to the Director 
     under paragraph (2) and actions taken by the Director to 
     advance the purposes of this title in the annual report to 
     the Congress on statistical programs prepared under section 
     3504(e)(2) of title 44, United States Code.

     SEC. 504. EFFECT ON OTHER LAWS.

       (a) Section 3510 of Title 44, United States Code.--This 
     title, including amendments made by this title, does not 
     diminish the authority under section 3510 of title 44, United 
     States Code, of the Director of the Office of Management and 
     Budget to direct, and of an agency to make, disclosures that 
     are not inconsistent with any applicable law.
       (b) Sections 8, 16, 301, and 401 of Title 13 and Section 
     2108 of Title 44, United States Code.--This title, including 
     amendments made by this title, does not diminish the 
     authority of the Bureau of the Census to provide information 
     in accordance with sections 8, 16, 301, and 401 of title 13 
     and section 2108 of title 44, United States Code.
       (c) Section 9 of Title 13, United States Code.--This title, 
     including amendments made by this title, shall not be 
     construed as authorizing the disclosure for nonstatistical 
     purposes of demographic data or information collected by the 
     Census Bureau pursuant to section 9 of title 13, United 
     States Code.
       (d) Section 12 of the Federal Energy Administration Act of 
     1974.--In accordance with the provisions of this title, data 
     acquired for exclusively statistical purposes under a pledge 
     of confidentiality are exempt from mandatory disclosure in 
     identifiable form for nonstatistical purposes under section 
     12 of the Federal Energy Administration Act of 1974 (15 
     U.S.C. 771).
       (e) Preemption of State Law.--Nothing in this title shall 
     preempt applicable State law regarding the confidentiality of 
     data collected by the States.
       (f) Statutes Regarding False Statements.--Notwithstanding 
     section 512, information collected by an agency for 
     exclusively statistical purposes under a pledge of 
     confidentiality may be provided by the collecting agency to a 
     law enforcement agency for the prosecution of submissions to 
     the collecting agency of false statistical information under 
     statutes that authorize criminal penalties (such as section 
     221 of title 13, United States Code) or civil penalties for 
     the provision of false statistical information, unless such 
     disclosure or use would otherwise be prohibited under Federal 
     law.
       (g) Construction.--Nothing in this title shall be construed 
     as restricting or diminishing any confidentiality protections 
     or penalties for unauthorized disclosure that otherwise apply 
     to data or information collected for statistical purposes or 
     nonstatistical purposes, including, but not limited to, 
     section 6103 of the Internal Revenue Code of 1986 (26 U.S.C. 
     6103).

            Subtitle A--Confidential Information Protection

     SEC. 511. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Individuals, businesses, and other organizations have 
     varying degrees of legal protection when providing 
     information to the Federal Government for strictly 
     statistical purposes.
       (2) Pledges of confidentiality by the Federal Government 
     provide assurances to the public that information about 
     individuals or organizations or provided by individuals or 
     organizations for exclusively statistical purposes will be 
     held in confidence and will not be used against such 
     individuals or organizations in any Federal Government 
     action.
       (3) Protecting the confidentiality interests of individuals 
     or organizations who provide information for Federal 
     statistical programs serves both the interests of the public 
     and the needs of society.
       (4) Declining trust of the public in the protection of 
     information provided to the Federal Government adversely 
     affects both the accuracy and completeness of statistical 
     analyses.
       (5) Ensuring that information provided for statistical 
     purposes receives protection is essential in continuing 
     public cooperation in statistical programs.
       (b) Purposes.--The purposes of this subtitle are the 
     following:
       (1) To ensure that information supplied by individuals or 
     organizations to an agency for statistical purposes under a 
     pledge of confidentiality is used exclusively for statistical 
     purposes.
       (2) To ensure that individuals or organizations who supply 
     information to the Federal Government for statistical 
     purposes will neither have that information disclosed in 
     identifiable form to anyone not authorized by this title nor 
     have that information used for any purpose other than a 
     statistical purpose.
       (3) To safeguard the confidentiality of individually 
     identifiable information acquired under a pledge of 
     confidentiality for statistical purposes by controlling 
     access to, and uses made of, such information.

     SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND 
                   INFORMATION.

       (a) Use of Statistical Data or Information.--Data or 
     information acquired by an agency under a pledge of 
     confidentiality and for exclusively statistical purposes 
     shall be used by officers, employees, or agents of the agency 
     exclusively for statistical purposes.
       (b) Disclosure of Statistical Data or Information.--
       (1) Data or information acquired by an agency under a 
     pledge of confidentiality for exclusively statistical 
     purposes shall not be disclosed by an agency in identifiable 
     form, for any use other than an exclusively statistical 
     purpose, except with the informed consent of the respondent.
       (2) A disclosure pursuant to paragraph (1) is authorized 
     only when the head of the agency approves such disclosure and 
     the disclosure is not prohibited by any other law.
       (3) This section does not restrict or diminish any 
     confidentiality protections in law that otherwise apply to 
     data or information acquired by an agency under a pledge of 
     confidentiality for exclusively statistical purposes.
       (c) Rule for Use of Data or Information for Nonstatistical 
     Purposes.--A statistical agency or unit shall clearly 
     distinguish any data or information it collects for 
     nonstatistical purposes (as authorized by law) by a rule that 
     provides that the respondent supplying the data or 
     information is fully informed, before the data or information 
     is collected, that the data or information could be used for 
     nonstatistical purposes.
       (d) Designation of Agents.--A statistical agency or unit 
     may designate agents, by contract or by entering into a 
     special agreement containing the provisions required by 
     section 502, who may perform exclusively statistical 
     activities, subject to the limitations and penalties 
     described in this title.

     SEC. 513. FINES AND PENALTIES.

       Whoever, being an officer, employee, or agent of an agency 
     acquiring information for exclusively statistical purposes, 
     having taken and subscribed the oath of office, or having 
     sworn to observe the limitations imposed by section 512, 
     comes into possession of such information by reason of his or 
     her being an officer, employee, or agent and, knowing that 
     the disclosure of the specific information is prohibited 
     under the provisions of this title, willfully discloses the 
     information in any manner to a person or agency not entitled 
     to receive it, shall be guilty of a class E felony and 
     imprisoned for not more than 5 years, or fined not more than 
     $250,000, or both.

[[Page H8961]]

                   Subtitle B--Statistical Efficiency

     SEC. 521. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Federal statistics are an important source of 
     information for public and private decision-makers such as 
     policymakers, consumers, businesses, investors, and workers.
       (2) Federal statistical agencies should continuously seek 
     to improve their efficiency. Statutory constraints limit the 
     ability of these agencies to share data and thus to achieve 
     higher efficiency for Federal statistical programs.
       (3) The quality of Federal statistics depends on the 
     willingness of businesses to respond to statistical surveys. 
     Reducing reporting burdens will increase response rates, and 
     therefore lead to more accurate characterizations of the 
     economy.
       (4) Enhanced sharing of business data among the Bureau of 
     the Census, the Bureau of Economic Analysis, and the Bureau 
     of Labor Statistics for exclusively statistical purposes will 
     improve their ability to track more accurately the large and 
     rapidly changing nature of United States business. In 
     particular, the statistical agencies will be able to better 
     ensure that businesses are consistently classified in 
     appropriate industries, resolve data anomalies, produce 
     statistical samples that are consistently adjusted for the 
     entry and exit of new businesses in a timely manner, and 
     correct faulty reporting errors quickly and efficiently.
       (5) Congress enacted the International Investment and Trade 
     in Services Act of 1990 that allowed the Bureau of the 
     Census, the Bureau of Economic Analysis, and the Bureau of 
     Labor Statistics to share data on foreign-owned companies. 
     The Act not only expanded detailed industry coverage from 135 
     industries to over 800 industries with no increase in the 
     data collected from respondents but also demonstrated how 
     data sharing can result in the creation of valuable data 
     products.
       (6) With subtitle A of this title, the sharing of business 
     data among the Bureau of the Census, the Bureau of Economic 
     Analysis, and the Bureau of Labor Statistics continues to 
     ensure the highest level of confidentiality for respondents 
     to statistical surveys.
       (b) Purposes.--The purposes of this subtitle are the 
     following:
       (1) To authorize the sharing of business data among the 
     Bureau of the Census, the Bureau of Economic Analysis, and 
     the Bureau of Labor Statistics for exclusively statistical 
     purposes.
       (2) To reduce the paperwork burdens imposed on businesses 
     that provide requested information to the Federal Government.
       (3) To improve the comparability and accuracy of Federal 
     economic statistics by allowing the Bureau of the Census, the 
     Bureau of Economic Analysis, and the Bureau of Labor 
     Statistics to update sample frames, develop consistent 
     classifications of establishments and companies into 
     industries, improve coverage, and reconcile significant 
     differences in data produced by the three agencies.
       (4) To increase understanding of the United States economy, 
     especially for key industry and regional statistics, to 
     develop more accurate measures of the impact of technology on 
     productivity growth, and to enhance the reliability of the 
     Nation's most important economic indicators, such as the 
     National Income and Product Accounts.

     SEC. 522. DESIGNATION OF STATISTICAL AGENCIES.

       For purposes of this subtitle, the term ``Designated 
     Statistical Agency'' means each of the following:
       (1) The Bureau of the Census of the Department of Commerce.
       (2) The Bureau of Economic Analysis of the Department of 
     Commerce.
       (3) The Bureau of Labor Statistics of the Department of 
     Labor.

     SEC. 523. RESPONSIBILITIES OF DESIGNATED STATISTICAL 
                   AGENCIES.

       The head of each of the Designated Statistical Agencies 
     shall--
       (1) identify opportunities to eliminate duplication and 
     otherwise reduce reporting burden and cost imposed on the 
     public in providing information for statistical purposes;
       (2) enter into joint statistical projects to improve the 
     quality and reduce the cost of statistical programs; and
       (3) protect the confidentiality of individually 
     identifiable information acquired for statistical purposes by 
     adhering to safeguard principles, including--
       (A) emphasizing to their officers, employees, and agents 
     the importance of protecting the confidentiality of 
     information in cases where the identity of individual 
     respondents can reasonably be inferred by either direct or 
     indirect means;
       (B) training their officers, employees, and agents in their 
     legal obligations to protect the confidentiality of 
     individually identifiable information and in the procedures 
     that must be followed to provide access to such information;
       (C) implementing appropriate measures to assure the 
     physical and electronic security of confidential data;
       (D) establishing a system of records that identifies 
     individuals accessing confidential data and the project for 
     which the data were required; and
       (E) being prepared to document their compliance with 
     safeguard principles to other agencies authorized by law to 
     monitor such compliance.

     SEC. 524. SHARING OF BUSINESS DATA AMONG DESIGNATED 
                   STATISTICAL AGENCIES.

       (a) In General.--A Designated Statistical Agency may 
     provide business data in an identifiable form to another 
     Designated Statistical Agency under the terms of a written 
     agreement among the agencies sharing the business data that 
     specifies--
       (1) the business data to be shared;
       (2) the statistical purposes for which the business data 
     are to be used;
       (3) the officers, employees, and agents authorized to 
     examine the business data to be shared; and
       (4) appropriate security procedures to safeguard the 
     confidentiality of the business data.
       (b) Responsibilities of Agencies Under Other Laws.--The 
     provision of business data by an agency to a Designated 
     Statistical Agency under this subtitle shall in no way alter 
     the responsibility of the agency providing the data under 
     other statutes (including section 552 of title 5, United 
     States Code (popularly known as the ``Freedom of Information 
     Act''), and section 552b of title 5, United States Code 
     (popularly known as the ``Privacy Act of 1974'')) with 
     respect to the provision or withholding of such information 
     by the agency providing the data.
       (c) Responsibilities of Officers, Employees, and Agents.--
     Examination of business data in identifiable form shall be 
     limited to the officers, employees, and agents authorized to 
     examine the individual reports in accordance with written 
     agreements pursuant to this section. Officers, employees, and 
     agents of a Designated Statistical Agency who receive data 
     pursuant to this subtitle shall be subject to all provisions 
     of law, including penalties, that relate--
       (1) to the unlawful provision of the business data that 
     would apply to the officers, employees, and agents of the 
     agency that originally obtained the information; and
       (2) to the unlawful disclosure of the business data that 
     would apply to officers, employees, and agents of the agency 
     that originally obtained the information.
       (d) Notice.--Whenever a written agreement concerns data 
     that respondents were required by law to report and the 
     respondents were not informed that the data could be shared 
     among the Designated Statistical Agencies, for exclusively 
     statistical purposes, the terms of such agreement shall be 
     described in a public notice issued by the agency that 
     intends to provide the data. Such notice shall allow a 
     minimum of 60 days for public comment.

     SEC. 525. LIMITATIONS ON USE OF BUSINESS DATA PROVIDED BY 
                   DESIGNATED STATISTICAL AGENCIES.

       (a) In General.--Business data provided by a Designated 
     Statistical Agency pursuant to this subtitle shall be used 
     exclusively for statistical purposes.
       (b) Publication of Data.--Publication of business data 
     acquired by a Designated Statistical Agency shall occur in a 
     manner whereby the data furnished by any particular 
     respondent are not in identifiable form.

     SEC. 526. CONFORMING AMENDMENTS.

       (a) Department of Commerce.--Section 1 of the Act of 
     January 27, 1938 (15 U.S.C. 176a) is amended by striking 
     ``The'' and inserting ``Except as provided in the 
     Confidential Information Protection and Statistical 
     Efficiency Act of 2002, the''.
       (b) Title 13.--Chapter 10 of title 13, United States Code, 
     is amended--
       (1) by adding after section 401 the following:

     ``Sec. 402. Providing business data to Designated Statistical 
       Agencies

       ``The Bureau of the Census may provide business data to the 
     Bureau of Economic Analysis and the Bureau of Labor 
     Statistics (`Designated Statistical Agencies') if such 
     information is required for an authorized statistical purpose 
     and the provision is the subject of a written agreement with 
     that Designated Statistical Agency, or their successors, as 
     defined in the Confidential Information Protection and 
     Statistical Efficiency Act of 2002.''; and
       (2) in the table of sections for the chapter by adding 
     after the item relating to section 401 the following:

``402. Providing business data to Designated Statistical Agencies.''.
  Further amendment:

       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 ``E-
     Government 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. Findings and purposes.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

Sec. 101. Management and promotion of electronic government services.
Sec. 102. Conforming amendments.

  TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

Sec. 201. Definitions.
Sec. 202. Federal agency responsibilities.
Sec. 203. Compatibility of executive agency methods for use and 
              acceptance of electronic signatures.
Sec. 204. Federal Internet portal.
Sec. 205. Federal courts.
Sec. 206. Regulatory agencies.
Sec. 207. Accessibility, usability, and preservation of government 
              information.
Sec. 208. Privacy provisions.
Sec. 209. Federal information technology workforce development.
Sec. 210. Share-in-savings initiatives.
Sec. 211. Authorization for acquisition of information technology by 
              State and local governments through Federal supply 
              schedules.
Sec. 212. Integrated reporting study and pilot projects.
Sec. 213. Community technology centers.

[[Page H8962]]

Sec. 214. Enhancing crisis management through advanced information 
              technology.
Sec. 215. Disparities in access to the Internet.
Sec. 216. Common protocols for geographic information systems.

                    TITLE III--INFORMATION SECURITY

Sec. 301. Information security.
Sec. 302. Management of information technology.
Sec. 303. National Institute of Standards and Technology.
Sec. 304. Information Security and Privacy Advisory Board.
Sec. 305. Technical and conforming amendments.

     TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES

Sec. 401. Authorization of appropriations.
Sec. 402. Effective dates.

TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Coordination and oversight of policies.
Sec. 504. Effect on other laws.

            Subtitle A--Confidential Information Protection

Sec. 511. Findings and purposes.
Sec. 512. Limitations on use and disclosure of data and information.
Sec. 513. Fines and penalties.

                   Subtitle B--Statistical Efficiency

Sec. 521. Findings and purposes.
Sec. 522. Designation of statistical agencies.
Sec. 523. Responsibilities of designated statistical agencies.
Sec. 524. Sharing of business data among designated statistical 
              agencies.
Sec. 525. Limitations on use of business data provided by designated 
              statistical agencies.
Sec. 526. Conforming amendments.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The use of computers and the Internet is rapidly 
     transforming societal interactions and the relationships 
     among citizens, private businesses, and the Government.
       (2) The Federal Government has had uneven success in 
     applying advances in information technology to enhance 
     governmental functions and services, achieve more efficient 
     performance, increase access to Government information, and 
     increase citizen participation in Government.
       (3) Most Internet-based services of the Federal Government 
     are developed and presented separately, according to the 
     jurisdictional boundaries of an individual department or 
     agency, rather than being integrated cooperatively according 
     to function or topic.
       (4) Internet-based Government services involving 
     interagency cooperation are especially difficult to develop 
     and promote, in part because of a lack of sufficient funding 
     mechanisms to support such interagency cooperation.
       (5) Electronic Government has its impact through improved 
     Government performance and outcomes within and across 
     agencies.
       (6) Electronic Government is a critical element in the 
     management of Government, to be implemented as part of a 
     management framework that also addresses finance, 
     procurement, human capital, and other challenges to improve 
     the performance of Government.
       (7) To take full advantage of the improved Government 
     performance that can be achieved through the use of Internet-
     based technology requires strong leadership, better 
     organization, improved interagency collaboration, and more 
     focused oversight of agency compliance with statutes related 
     to information resource management.
       (b) Purposes.--The purposes of this Act are the following:
       (1) To provide effective leadership of Federal Government 
     efforts to develop and promote electronic Government services 
     and processes by establishing an Administrator of a new 
     Office of Electronic Government within the Office of 
     Management and Budget.
       (2) To promote use of the Internet and other information 
     technologies to provide increased opportunities for citizen 
     participation in Government.
       (3) To promote interagency collaboration in providing 
     electronic Government services, where this collaboration 
     would improve the service to citizens by integrating related 
     functions, and in the use of internal electronic Government 
     processes, where this collaboration would improve the 
     efficiency and effectiveness of the processes.
       (4) To improve the ability of the Government to achieve 
     agency missions and program performance goals.
       (5) To promote the use of the Internet and emerging 
     technologies within and across Government agencies to provide 
     citizen-centric Government information and services.
       (6) To reduce costs and burdens for businesses and other 
     Government entities.
       (7) To promote better informed decisionmaking by policy 
     makers.
       (8) To promote access to high quality Government 
     information and services across multiple channels.
       (9) To make the Federal Government more transparent and 
     accountable.
       (10) To transform agency operations by utilizing, where 
     appropriate, best practices from public and private sector 
     organizations.
       (11) To provide enhanced access to Government information 
     and services in a manner consistent with laws regarding 
     protection of personal privacy, national security, records 
     retention, access for persons with disabilities, and other 
     relevant laws.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

     SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                   SERVICES.

       (a) In General.--Title 44, United States Code, is amended 
     by inserting after chapter 35 the following:

    ``CHAPTER 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

``Sec.
``3601. Definitions.
``3602. Office of Electronic Government.
``3603. Chief Information Officers Council.
``3604. E-Government Fund.
``3605. Program to encourage innovative solutions to enhance electronic 
              Government services and processes.
``3606. E-Government report.

     ``Sec. 3601. Definitions

       ``In this chapter, the definitions under section 3502 shall 
     apply, and the term--
       ``(1) `Administrator' means the Administrator of the Office 
     of Electronic Government established under section 3602;
       ``(2) `Council' means the Chief Information Officers 
     Council established under section 3603;
       ``(3) `electronic Government' means the use by the 
     Government of web-based Internet applications and other 
     information technologies, combined with processes that 
     implement these technologies, to--
       ``(A) enhance the access to and delivery of Government 
     information and services to the public, other agencies, and 
     other Government entities; or
       ``(B) bring about improvements in Government operations 
     that may include effectiveness, efficiency, service quality, 
     or transformation;
       ``(4) `enterprise architecture'--
       ``(A) means--
       ``(i) a strategic information asset base, which defines the 
     mission;
       ``(ii) the information necessary to perform the mission;
       ``(iii) the technologies necessary to perform the mission; 
     and
       ``(iv) the transitional processes for implementing new 
     technologies in response to changing mission needs; and
       ``(B) includes--
       ``(i) a baseline architecture;
       ``(ii) a target architecture; and
       ``(iii) a sequencing plan;
       ``(5) `Fund' means the E-Government Fund established under 
     section 3604;
       ``(6) `interoperability' means the ability of different 
     operating and software systems, applications, and services to 
     communicate and exchange data in an accurate, effective, and 
     consistent manner;
       ``(7) `integrated service delivery' means the provision of 
     Internet-based Federal Government information or services 
     integrated according to function or topic rather than 
     separated according to the boundaries of agency jurisdiction; 
     and
       ``(8) `tribal government' means--
       ``(A) the governing body of any Indian tribe, band, nation, 
     or other organized group or community located in the 
     continental United States (excluding the State of Alaska) 
     that is recognized as eligible for the special programs and 
     services provided by the United States to Indians because of 
     their status as Indians, and
       ``(B) any Alaska Native regional or village corporation 
     established pursuant to the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1601 et seq.).

     ``Sec. 3602. Office of Electronic Government

       ``(a) There is established in the Office of Management and 
     Budget an Office of Electronic Government.
       ``(b) There shall be at the head of the Office an 
     Administrator who shall be appointed by the President.
       ``(c) The Administrator shall assist the Director in 
     carrying out--
       ``(1) all functions under this chapter;
       ``(2) all of the functions assigned to the Director under 
     title II of the E-Government Act of 2002; and
       ``(3) other electronic government initiatives, consistent 
     with other statutes.
       ``(d) The Administrator shall assist the Director and the 
     Deputy Director for Management and work with the 
     Administrator of the Office of Information and Regulatory 
     Affairs in setting strategic direction for implementing 
     electronic Government, under relevant statutes, including--
       ``(1) chapter 35;
       ``(2) subtitle III of title 40, United States Code;
       ``(3) section 552a of title 5 (commonly referred to as the 
     `Privacy Act');
       ``(4) the Government Paperwork Elimination Act (44 U.S.C. 
     3504 note); and
       ``(5) the Federal Information Security Management Act of 
     2002.
       ``(e) The Administrator shall work with the Administrator 
     of the Office of Information and Regulatory Affairs and with 
     other offices within the Office of Management and

[[Page H8963]]

     Budget to oversee implementation of electronic Government 
     under this chapter, chapter 35, the E-Government Act of 2002, 
     and other relevant statutes, in a manner consistent with law, 
     relating to--
       ``(1) capital planning and investment control for 
     information technology;
       ``(2) the development of enterprise architectures;
       ``(3) information security;
       ``(4) privacy;
       ``(5) access to, dissemination of, and preservation of 
     Government information;
       ``(6) accessibility of information technology for persons 
     with disabilities; and
       ``(7) other areas of electronic Government.
       ``(f) Subject to requirements of this chapter, the 
     Administrator shall assist the Director by performing 
     electronic Government functions as follows:
       ``(1) Advise the Director on the resources required to 
     develop and effectively administer electronic Government 
     initiatives.
       ``(2) Recommend to the Director changes relating to 
     Governmentwide strategies and priorities for electronic 
     Government.
       ``(3) Provide overall leadership and direction to the 
     executive branch on electronic Government.
       ``(4) Promote innovative uses of information technology by 
     agencies, particularly initiatives involving multiagency 
     collaboration, through support of pilot projects, research, 
     experimentation, and the use of innovative technologies.
       ``(5) Oversee the distribution of funds from, and ensure 
     appropriate administration and coordination of, the E-
     Government Fund established under section 3604.
       ``(6) Coordinate with the Administrator of General Services 
     regarding programs undertaken by the General Services 
     Administration to promote electronic government and the 
     efficient use of information technologies by agencies.
       ``(7) Lead the activities of the Chief Information Officers 
     Council established under section 3603 on behalf of the 
     Deputy Director for Management, who shall chair the council.
       ``(8) Assist the Director in establishing policies which 
     shall set the framework for information technology standards 
     for the Federal Government developed by the National 
     Institute of Standards and Technology and promulgated by the 
     Secretary of Commerce under section 11331 of title 40, taking 
     into account, if appropriate, recommendations of the Chief 
     Information Officers Council, experts, and interested parties 
     from the private and nonprofit sectors and State, local, and 
     tribal governments, and maximizing the use of commercial 
     standards as appropriate, including the following:
       ``(A) Standards and guidelines for interconnectivity and 
     interoperability as described under section 3504.
       ``(B) Consistent with the process under section 207(d) of 
     the E-Government Act of 2002, standards and guidelines for 
     categorizing Federal Government electronic information to 
     enable efficient use of technologies, such as through the use 
     of extensible markup language.
       ``(C) Standards and guidelines for Federal Government 
     computer system efficiency and security.
       ``(9) Sponsor ongoing dialogue that--
       ``(A) shall be conducted among Federal, State, local, and 
     tribal government leaders on electronic Government in the 
     executive, legislative, and judicial branches, as well as 
     leaders in the private and nonprofit sectors, to encourage 
     collaboration and enhance understanding of best practices and 
     innovative approaches in acquiring, using, and managing 
     information resources;
       ``(B) is intended to improve the performance of governments 
     in collaborating on the use of information technology to 
     improve the delivery of Government information and services; 
     and
       ``(C) may include--
       ``(i) development of innovative models--

       ``(I) for electronic Government management and Government 
     information technology contracts; and
       ``(II) that may be developed through focused discussions or 
     using separately sponsored research;

       ``(ii) identification of opportunities for public-private 
     collaboration in using Internet-based technology to increase 
     the efficiency of Government-to-business transactions;
       ``(iii) identification of mechanisms for providing 
     incentives to program managers and other Government employees 
     to develop and implement innovative uses of information 
     technologies; and
       ``(iv) identification of opportunities for public, private, 
     and intergovernmental collaboration in addressing the 
     disparities in access to the Internet and information 
     technology.
       ``(10) Sponsor activities to engage the general public in 
     the development and implementation of policies and programs, 
     particularly activities aimed at fulfilling the goal of using 
     the most effective citizen-centered strategies and those 
     activities which engage multiple agencies providing similar 
     or related information and services.
       ``(11) Oversee the work of the General Services 
     Administration and other agencies in developing the 
     integrated Internet-based system under section 204 of the E-
     Government Act of 2002.
       ``(12) Coordinate with the Administrator for Federal 
     Procurement Policy to ensure effective implementation of 
     electronic procurement initiatives.
       ``(13) Assist Federal agencies, including the General 
     Services Administration, the Department of Justice, and the 
     United States Access Board in--
       ``(A) implementing accessibility standards under section 
     508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); and
       ``(B) ensuring compliance with those standards through the 
     budget review process and other means.
       ``(14) Oversee the development of enterprise architectures 
     within and across agencies.
       ``(15) Assist the Director and the Deputy Director for 
     Management in overseeing agency efforts to ensure that 
     electronic Government activities incorporate adequate, risk-
     based, and cost-effective security compatible with business 
     processes.
       ``(16) Administer the Office of Electronic Government 
     established under this section.
       ``(17) Assist the Director in preparing the E-Government 
     report established under section 3606.
       ``(g) The Director shall ensure that the Office of 
     Management and Budget, including the Office of Electronic 
     Government, the Office of Information and Regulatory Affairs, 
     and other relevant offices, have adequate staff and resources 
     to properly fulfill all functions under the E-Government Act 
     of 2002.

     ``Sec. 3603. Chief Information Officers Council

       ``(a) There is established in the executive branch a Chief 
     Information Officers Council.
       ``(b) The members of the Council shall be as follows:
       ``(1) The Deputy Director for Management of the Office of 
     Management and Budget, who shall act as chairperson of the 
     Council.
       ``(2) The Administrator of the Office of Electronic 
     Government.
       ``(3) The Administrator of the Office of Information and 
     Regulatory Affairs.
       ``(4) The chief information officer of each agency 
     described under section 901(b) of title 31.
       ``(5) The chief information officer of the Central 
     Intelligence Agency.
       ``(6) The chief information officer of the Department of 
     the Army, the Department of the Navy, and the Department of 
     the Air Force, if chief information officers have been 
     designated for such departments under section 3506(a)(2)(B).
       ``(7) Any other officer or employee of the United States 
     designated by the chairperson.
       ``(c)(1) The Administrator of the Office of Electronic 
     Government shall lead the activities of the Council on behalf 
     of the Deputy Director for Management.
       ``(2)(A) The Vice Chairman of the Council shall be selected 
     by the Council from among its members.
       ``(B) The Vice Chairman shall serve a 1-year term, and may 
     serve multiple terms.
       ``(3) The Administrator of General Services shall provide 
     administrative and other support for the Council.
       ``(d) The Council is designated the principal interagency 
     forum for improving agency practices related to the design, 
     acquisition, development, modernization, use, operation, 
     sharing, and performance of Federal Government information 
     resources.
       ``(e) In performing its duties, the Council shall consult 
     regularly with representatives of State, local, and tribal 
     governments.
       ``(f) The Council shall perform functions that include the 
     following:
       ``(1) Develop recommendations for the Director on 
     Government information resources management policies and 
     requirements.
       ``(2) Share experiences, ideas, best practices, and 
     innovative approaches related to information resources 
     management.
       ``(3) Assist the Administrator in the identification, 
     development, and coordination of multiagency projects and 
     other innovative initiatives to improve Government 
     performance through the use of information technology.
       ``(4) Promote the development and use of common performance 
     measures for agency information resources management under 
     this chapter and title II of the E-Government Act of 2002.
       ``(5) Work as appropriate with the National Institute of 
     Standards and Technology and the Administrator to develop 
     recommendations on information technology standards developed 
     under section 20 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278g-3) and promulgated under 
     section 11331 of title 40, and maximize the use of commercial 
     standards as appropriate, including the following:
       ``(A) Standards and guidelines for interconnectivity and 
     interoperability as described under section 3504.
       ``(B) Consistent with the process under section 207(d) of 
     the E-Government Act of 2002, standards and guidelines for 
     categorizing Federal Government electronic information to 
     enable efficient use of technologies, such as through the use 
     of extensible markup language.
       ``(C) Standards and guidelines for Federal Government 
     computer system efficiency and security.
       ``(6) Work with the Office of Personnel Management to 
     assess and address the hiring, training, classification, and 
     professional development needs of the Government related to 
     information resources management.
       ``(7) Work with the Archivist of the United States to 
     assess how the Federal Records Act can be addressed 
     effectively by Federal information resources management 
     activities.

[[Page H8964]]

     ``Sec. 3604. E-Government Fund

       ``(a)(1) There is established in the Treasury of the United 
     States the E-Government Fund.
       ``(2) The Fund shall be administered by the Administrator 
     of the General Services Administration to support projects 
     approved by the Director, assisted by the Administrator of 
     the Office of Electronic Government, that enable the Federal 
     Government to expand its ability, through the development and 
     implementation of innovative uses of the Internet or other 
     electronic methods, to conduct activities electronically.
       ``(3) Projects under this subsection may include efforts 
     to--
       ``(A) make Federal Government information and services more 
     readily available to members of the public (including 
     individuals, businesses, grantees, and State and local 
     governments);
       ``(B) make it easier for the public to apply for benefits, 
     receive services, pursue business opportunities, submit 
     information, and otherwise conduct transactions with the 
     Federal Government; and
       ``(C) enable Federal agencies to take advantage of 
     information technology in sharing information and conducting 
     transactions with each other and with State and local 
     governments.
       ``(b)(1) The Administrator shall--
       ``(A) establish procedures for accepting and reviewing 
     proposals for funding;
       ``(B) consult with interagency councils, including the 
     Chief Information Officers Council, the Chief Financial 
     Officers Council, and other interagency management councils, 
     in establishing procedures and reviewing proposals; and
       ``(C) assist the Director in coordinating resources that 
     agencies receive from the Fund with other resources available 
     to agencies for similar purposes.
       ``(2) When reviewing proposals and managing the Fund, the 
     Administrator shall observe and incorporate the following 
     procedures:
       ``(A) A project requiring substantial involvement or 
     funding from an agency shall be approved by a senior official 
     with agencywide authority on behalf of the head of the 
     agency, who shall report directly to the head of the agency.
       ``(B) Projects shall adhere to fundamental capital planning 
     and investment control processes.
       ``(C) Agencies shall identify in their proposals resource 
     commitments from the agencies involved and how these 
     resources would be coordinated with support from the Fund, 
     and include plans for potential continuation of projects 
     after all funds made available from the Fund are expended.
       ``(D) After considering the recommendations of the 
     interagency councils, the Director, assisted by the 
     Administrator, shall have final authority to determine which 
     of the candidate projects shall be funded from the Fund.
       ``(E) Agencies shall assess the results of funded projects.
       ``(c) In determining which proposals to recommend for 
     funding, the Administrator--
       ``(1) shall consider criteria that include whether a 
     proposal--
       ``(A) identifies the group to be served, including 
     citizens, businesses, the Federal Government, or other 
     governments;
       ``(B) indicates what service or information the project 
     will provide that meets needs of groups identified under 
     subparagraph (A);
       ``(C) ensures proper security and protects privacy;
       ``(D) is interagency in scope, including projects 
     implemented by a primary or single agency that--
       ``(i) could confer benefits on multiple agencies; and
       ``(ii) have the support of other agencies; and
       ``(E) has performance objectives that tie to agency 
     missions and strategic goals, and interim results that relate 
     to the objectives; and
       ``(2) may also rank proposals based on criteria that 
     include whether a proposal--
       ``(A) has Governmentwide application or implications;
       ``(B) has demonstrated support by the public to be served;
       ``(C) integrates Federal with State, local, or tribal 
     approaches to service delivery;
       ``(D) identifies resource commitments from nongovernmental 
     sectors;
       ``(E) identifies resource commitments from the agencies 
     involved;
       ``(F) uses web-based technologies to achieve objectives;
       ``(G) identifies records management and records access 
     strategies;
       ``(H) supports more effective citizen participation in and 
     interaction with agency activities that further progress 
     toward a more citizen-centered Government;
       ``(I) directly delivers Government information and services 
     to the public or provides the infrastructure for delivery;
       ``(J) supports integrated service delivery;
       ``(K) describes how business processes across agencies will 
     reflect appropriate transformation simultaneous to technology 
     implementation; and
       ``(L) is new or innovative and does not supplant existing 
     funding streams within agencies.
       ``(d) The Fund may be used to fund the integrated Internet-
     based system under section 204 of the E-Government Act of 
     2002.
       ``(e) None of the funds provided from the Fund may be 
     transferred to any agency until 15 days after the 
     Administrator of the General Services Administration has 
     submitted to the Committees on Appropriations of the Senate 
     and the House of Representatives, the Committee on 
     Governmental Affairs of the Senate, the Committee on 
     Government Reform of the House of Representatives, and the 
     appropriate authorizing committees of the Senate and the 
     House of Representatives, a notification and description of 
     how the funds are to be allocated and how the expenditure 
     will further the purposes of this chapter.
       ``(f)(1) The Director shall report annually to Congress on 
     the operation of the Fund, through the report established 
     under section 3606.
       ``(2) The report under paragraph (1) shall describe--
       ``(A) all projects which the Director has approved for 
     funding from the Fund; and
       ``(B) the results that have been achieved to date for these 
     funded projects.
       ``(g)(1) There are authorized to be appropriated to the 
     Fund--
       ``(A) $45,000,000 for fiscal year 2003;
       ``(B) $50,000,000 for fiscal year 2004;
       ``(C) $100,000,000 for fiscal year 2005;
       ``(D) $150,000,000 for fiscal year 2006; and
       ``(E) such sums as are necessary for fiscal year 2007.
       ``(2) Funds appropriated under this subsection shall remain 
     available until expended.

     ``Sec. 3605. Program to encourage innovative solutions to 
       enhance electronic Government services and processes

       ``(a) Establishment of Program.--The Administrator shall 
     establish and promote a Governmentwide program to encourage 
     contractor innovation and excellence in facilitating the 
     development and enhancement of electronic Government services 
     and processes.
       ``(b) Issuance of Announcements Seeking Innovative 
     Solutions.--Under the program, the Administrator, in 
     consultation with the Council and the Administrator for 
     Federal Procurement Policy, shall issue announcements seeking 
     unique and innovative solutions to facilitate the development 
     and enhancement of electronic Government services and 
     processes.
       ``(c) Multiagency Technical Assistance Team.--(1) The 
     Administrator, in consultation with the Council and the 
     Administrator for Federal Procurement Policy, shall convene a 
     multiagency technical assistance team to assist in screening 
     proposals submitted to the Administrator to provide unique 
     and innovative solutions to facilitate the development and 
     enhancement of electronic Government services and processes. 
     The team shall be composed of employees of the agencies 
     represented on the Council who have expertise in scientific 
     and technical disciplines that would facilitate the 
     assessment of the feasibility of the proposals.
       ``(2) The technical assistance team shall--
       ``(A) assess the feasibility, scientific and technical 
     merits, and estimated cost of each proposal; and
       ``(B) submit each proposal, and the assessment of the 
     proposal, to the Administrator.
       ``(3) The technical assistance team shall not consider or 
     evaluate proposals submitted in response to a solicitation 
     for offers for a pending procurement or for a specific agency 
     requirement.
       ``(4) After receiving proposals and assessments from the 
     technical assistance team, the Administrator shall consider 
     recommending appropriate proposals for funding under the E-
     Government Fund established under section 3604 or, if 
     appropriate, forward the proposal and the assessment of it to 
     the executive agency whose mission most coincides with the 
     subject matter of the proposal.

     ``Sec. 3606. E-Government report

       ``(a) Not later than March 1 of each year, the Director 
     shall submit an E-Government status report to the Committee 
     on Governmental Affairs of the Senate and the Committee on 
     Government Reform of the House of Representatives.
       ``(b) The report under subsection (a) shall contain--
       ``(1) a summary of the information reported by agencies 
     under section 202(f) of the E-Government Act of 2002;
       ``(2) the information required to be reported by section 
     3604(f); and
       ``(3) a description of compliance by the Federal Government 
     with other goals and provisions of the E-Government Act of 
     2002.''.
       (b) Technical and Conforming Amendment.--The table of 
     chapters for title 44, United States Code, is amended by 
     inserting after the item relating to chapter 35 the 
     following:

``36. Management and Promotion of Electronic Government Serv3601''.....

     SEC. 102. CONFORMING AMENDMENTS.

       (a) Electronic Government and Information Technologies.--
       (1) In general.--Chapter 3 of title 40, United States Code, 
     is amended by inserting after section 304 the following new 
     section:

     ``Sec. 305. Electronic Government and information 
       technologies

       ``The Administrator of General Services shall consult with 
     the Administrator of the Office of Electronic Government on 
     programs undertaken by the General Services Administration to 
     promote electronic Government and the efficient use of 
     information technologies by Federal agencies.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 3 of

[[Page H8965]]

     such title is amended by inserting after the item relating to 
     section 304 the following:

``305. Electronic Government and information technologies.''.

       (b) Modification of Deputy Director for Management 
     Functions.--Section 503(b) of title 31, United States Code, 
     is amended--
       (1) by redesignating paragraphs (5), (6), (7), (8), and 
     (9), as paragraphs (6), (7), (8), (9), and (10), 
     respectively; and
       (2) by inserting after paragraph (4) the following:
       ``(5) Chair the Chief Information Officers Council 
     established under section 3603 of title 44.''.
       (c) Office of Electronic Government.--
       (1) In general.--Chapter 5 of title 31, United States Code, 
     is amended by inserting after section 506 the following:

     ``Sec. 507. Office of Electronic Government

       ``The Office of Electronic Government, established under 
     section 3602 of title 44, is an office in the Office of 
     Management and Budget.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 5 of title 31, United States Code, is 
     amended by inserting after the item relating to section 506 
     the following:

``507. Office of Electronic Government.''.

  TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT 
                                SERVICES

     SEC. 201. DEFINITIONS.

       Except as otherwise provided, in this title the definitions 
     under sections 3502 and 3601 of title 44, United States Code, 
     shall apply.

     SEC. 202. FEDERAL AGENCY RESPONSIBILITIES.

       (a) In General.--The head of each agency shall be 
     responsible for--
       (1) complying with the requirements of this Act (including 
     the amendments made by this Act), the related information 
     resource management policies and guidance established by the 
     Director of the Office of Management and Budget, and the 
     related information technology standards promulgated by the 
     Secretary of Commerce;
       (2) ensuring that the information resource management 
     policies and guidance established under this Act by the 
     Director, and the related information technology standards 
     promulgated by the Secretary of Commerce are communicated 
     promptly and effectively to all relevant officials within 
     their agency; and
       (3) supporting the efforts of the Director and the 
     Administrator of the General Services Administration to 
     develop, maintain, and promote an integrated Internet-based 
     system of delivering Federal Government information and 
     services to the public under section 204.
       (b) Performance Integration.--
       (1) Agencies shall develop performance measures that 
     demonstrate how electronic government enables progress toward 
     agency objectives, strategic goals, and statutory mandates.
       (2) In measuring performance under this section, agencies 
     shall rely on existing data collections to the extent 
     practicable.
       (3) Areas of performance measurement that agencies should 
     consider include--
       (A) customer service;
       (B) agency productivity; and
       (C) adoption of innovative information technology, 
     including the appropriate use of commercial best practices.
       (4) Agencies shall link their performance goals, as 
     appropriate, to key groups, including citizens, businesses, 
     and other governments, and to internal Federal Government 
     operations.
       (5) As appropriate, agencies shall work collectively in 
     linking their performance goals to groups identified under 
     paragraph (4) and shall use information technology in 
     delivering Government information and services to those 
     groups.
       (c) Avoiding Diminished Access.--When promulgating policies 
     and implementing programs regarding the provision of 
     Government information and services over the Internet, agency 
     heads shall consider the impact on persons without access to 
     the Internet, and shall, to the extent practicable--
       (1) ensure that the availability of Government information 
     and services has not been diminished for individuals who lack 
     access to the Internet; and
       (2) pursue alternate modes of delivery that make Government 
     information and services more accessible to individuals who 
     do not own computers or lack access to the Internet.
       (d) Accessibility to People With Disabilities.--All actions 
     taken by Federal departments and agencies under this Act 
     shall be in compliance with section 508 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794d).
       (e) Sponsored Activities.--Agencies shall sponsor 
     activities that use information technology to engage the 
     public in the development and implementation of policies and 
     programs.
       (f) Chief Information Officers.--The Chief Information 
     Officer of each of the agencies designated under chapter 36 
     of title 44, United States Code (as added by this Act) shall 
     be responsible for--
       (1) participating in the functions of the Chief Information 
     Officers Council; and
       (2) monitoring the implementation, within their respective 
     agencies, of information technology standards promulgated by 
     the Secretary of Commerce, including common standards for 
     interconnectivity and interoperability, categorization of 
     Federal Government electronic information, and computer 
     system efficiency and security.
       (g) E-Government Status Report.--
       (1) In general.--Each agency shall compile and submit to 
     the Director an annual E-Government Status Report on--
       (A) the status of the implementation by the agency of 
     electronic government initiatives;
       (B) compliance by the agency with this Act; and
       (C) how electronic Government initiatives of the agency 
     improve performance in delivering programs to constituencies.
       (2) Submission.--Each agency shall submit an annual report 
     under this subsection--
       (A) to the Director at such time and in such manner as the 
     Director requires;
       (B) consistent with related reporting requirements; and
       (C) which addresses any section in this title relevant to 
     that agency.
       (h) Use of Technology.--Nothing in this Act supersedes the 
     responsibility of an agency to use or manage information 
     technology to deliver Government information and services 
     that fulfill the statutory mission and programs of the 
     agency.
       (i) National Security Systems.--
       (1) Inapplicability.--Except as provided under paragraph 
     (2), this title does not apply to national security systems 
     as defined in section 11103 of title 40, United States Code.
       (2) Applicability.--This section, section 203, and section 
     214 do apply to national security systems to the extent 
     practicable and consistent with law.

     SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE 
                   AND ACCEPTANCE OF ELECTRONIC SIGNATURES.

       (a) Purpose.--The purpose of this section is to achieve 
     interoperable implementation of electronic signatures for 
     appropriately secure electronic transactions with Government.
       (b) Electronic Signatures.--In order to fulfill the 
     objectives of the Government Paperwork Elimination Act 
     (Public Law 105-277; 112 Stat. 2681-749 through 2681-751), 
     each Executive agency (as defined under section 105 of title 
     5, United States Code) shall ensure that its methods for use 
     and acceptance of electronic signatures are compatible with 
     the relevant policies and procedures issued by the Director.
       (c) Authority for Electronic Signatures.--The Administrator 
     of General Services shall support the Director by 
     establishing a framework to allow efficient interoperability 
     among Executive agencies when using electronic signatures, 
     including processing of digital signatures.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the General Services Administration, to 
     ensure the development and operation of a Federal bridge 
     certification authority for digital signature compatibility, 
     and for other activities consistent with this section, 
     $8,000,000 or such sums as are necessary in fiscal year 2003, 
     and such sums as are necessary for each fiscal year 
     thereafter.

     SEC. 204. FEDERAL INTERNET PORTAL.

       (a) In General.--
       (1) Public access.--The Director shall work with the 
     Administrator of the General Services Administration and 
     other agencies to maintain and promote an integrated 
     Internet-based system of providing the public with access to 
     Government information and services.
       (2) Criteria.--To the extent practicable, the integrated 
     system shall be designed and operated according to the 
     following criteria:
       (A) The provision of Internet-based Government information 
     and services directed to key groups, including citizens, 
     business, and other governments, and integrated according to 
     function or topic rather than separated according to the 
     boundaries of agency jurisdiction.
       (B) An ongoing effort to ensure that Internet-based 
     Government services relevant to a given citizen activity are 
     available from a single point.
       (C) Access to Federal Government information and services 
     consolidated, as appropriate, with Internet-based information 
     and services provided by State, local, and tribal 
     governments.
       (D) Access to Federal Government information held by 1 or 
     more agencies shall be made available in a manner that 
     protects privacy, consistent with law.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the General Services Administration 
     $15,000,000 for the maintenance, improvement, and promotion 
     of the integrated Internet-based system for fiscal year 2003, 
     and such sums as are necessary for fiscal years 2004 through 
     2007.

     SEC. 205. FEDERAL COURTS.

       (a) Individual Court Websites.--The Chief Justice of the 
     United States, the chief judge of each circuit and district 
     and of the Court of Federal Claims, and the chief bankruptcy 
     judge of each district shall cause to be established and 
     maintained, for the court of which the judge is chief justice 
     or judge, a website that contains the following information 
     or links to websites with the following information:
       (1) Location and contact information for the courthouse, 
     including the telephone numbers and contact names for the 
     clerk's office and justices' or judges' chambers.
       (2) Local rules and standing or general orders of the 
     court.
       (3) Individual rules, if in existence, of each justice or 
     judge in that court.
       (4) Access to docket information for each case.

[[Page H8966]]

       (5) Access to the substance of all written opinions issued 
     by the court, regardless of whether such opinions are to be 
     published in the official court reporter, in a text 
     searchable format.
       (6) Access to documents filed with the courthouse in 
     electronic form, to the extent provided under subsection (c).
       (7) Any other information (including forms in a format that 
     can be downloaded) that the court determines useful to the 
     public.
       (b) Maintenance of Data Online.--
       (1) Update of information.--The information and rules on 
     each website shall be updated regularly and kept reasonably 
     current.
       (2) Closed cases.--Electronic files and docket information 
     for cases closed for more than 1 year are not required to be 
     made available online, except all written opinions with a 
     date of issuance after the effective date of this section 
     shall remain available online.
       (c) Electronic Filings.--
       (1) In general.--Except as provided under paragraph (2) or 
     in the rules prescribed under paragraph (3), each court shall 
     make any document that is filed electronically publicly 
     available online. A court may convert any document that is 
     filed in paper form to electronic form. To the extent such 
     conversions are made, all such electronic versions of the 
     document shall be made available online.
       (2) Exceptions.--Documents that are filed that are not 
     otherwise available to the public, such as documents filed 
     under seal, shall not be made available online.
       (3) Privacy and security concerns.--(A)(i) The Supreme 
     Court shall prescribe rules, in accordance with sections 2072 
     and 2075 of title 28, United States Code, to protect privacy 
     and security concerns relating to electronic filing of 
     documents and the public availability under this subsection 
     of documents filed electronically.
       (ii) Such rules shall provide to the extent practicable for 
     uniform treatment of privacy and security issues throughout 
     the Federal courts.
       (iii) Such rules shall take into consideration best 
     practices in Federal and State courts to protect private 
     information or otherwise maintain necessary information 
     security.
       (iv) To the extent that such rules provide for the 
     redaction of certain categories of information in order to 
     protect privacy and security concerns, such rules shall 
     provide that a party that wishes to file an otherwise proper 
     document containing such information may file an unredacted 
     document under seal, which shall be retained by the court as 
     part of the record, and which, at the discretion of the court 
     and subject to any applicable rules issued in accordance with 
     chapter 131 of title 28, United States Code, shall be either 
     in lieu of, or in addition, to, a redacted copy in the public 
     file.
       (B)(i) Subject to clause (ii), the Judicial Conference of 
     the United States may issue interim rules, and interpretive 
     statements relating to the application of such rules, which 
     conform to the requirements of this paragraph and which shall 
     cease to have effect upon the effective date of the rules 
     required under subparagraph (A).
       (ii) Pending issuance of the rules required under 
     subparagraph (A), any rule or order of any court, or of the 
     Judicial Conference, providing for the redaction of certain 
     categories of information in order to protect privacy and 
     security concerns arising from electronic filing shall comply 
     with, and be construed in conformity with, subparagraph 
     (A)(iv).
       (C) Not later than 1 year after the rules prescribed under 
     subparagraph (A) take effect, and every 2 years thereafter, 
     the Judicial Conference shall submit to Congress a report on 
     the adequacy of those rules to protect privacy and security.
       (d) Dockets With Links to Documents.--The Judicial 
     Conference of the United States shall explore the feasibility 
     of technology to post online dockets with links allowing all 
     filings, decisions, and rulings in each case to be obtained 
     from the docket sheet of that case.
       (e) Cost of Providing Electronic Docketing Information.--
     Section 303(a) of the Judiciary Appropriations Act, 1992 (28 
     U.S.C. 1913 note) is amended in the first sentence by 
     striking ``shall hereafter'' and inserting ``may, only to the 
     extent necessary,''.
       (f) Time Requirements.--Not later than 2 years after the 
     effective date of this title, the websites under subsection 
     (a) shall be established, except that access to documents 
     filed in electronic form shall be established not later than 
     4 years after that effective date.
       (g) Deferral.--
       (1) In general.--
       (A) Election.--
       (i) Notification.--The Chief Justice of the United States, 
     a chief judge, or chief bankruptcy judge may submit a 
     notification to the Administrative Office of the United 
     States Courts to defer compliance with any requirement of 
     this section with respect to the Supreme Court, a court of 
     appeals, district, or the bankruptcy court of a district.
       (ii) Contents.--A notification submitted under this 
     subparagraph shall state--

       (I) the reasons for the deferral; and
       (II) the online methods, if any, or any alternative 
     methods, such court or district is using to provide greater 
     public access to information.

       (B) Exception.--To the extent that the Supreme Court, a 
     court of appeals, district, or bankruptcy court of a district 
     maintains a website under subsection (a), the Supreme Court 
     or that court of appeals or district shall comply with 
     subsection (b)(1).
       (2) Report.--Not later than 1 year after the effective date 
     of this title, and every year thereafter, the Judicial 
     Conference of the United States shall submit a report to the 
     Committees on Governmental Affairs and the Judiciary of the 
     Senate and the Committees on Government Reform and the 
     Judiciary of the House of Representatives that--
       (A) contains all notifications submitted to the 
     Administrative Office of the United States Courts under this 
     subsection; and
       (B) summarizes and evaluates all notifications.

     SEC. 206. REGULATORY AGENCIES.

       (a) Purposes.--The purposes of this section are to--
       (1) improve performance in the development and issuance of 
     agency regulations by using information technology to 
     increase access, accountability, and transparency; and
       (2) enhance public participation in Government by 
     electronic means, consistent with requirements under 
     subchapter II of chapter 5 of title 5, United States Code, 
     (commonly referred to as the ``Administrative Procedures 
     Act'').
       (b) Information Provided by Agencies Online.--To the extent 
     practicable as determined by the agency in consultation with 
     the Director, each agency (as defined under section 551 of 
     title 5, United States Code) shall ensure that a publicly 
     accessible Federal Government website includes all 
     information about that agency required to be published in the 
     Federal Register under paragraphs (1) and (2) of section 
     552(a) of title 5, United States Code.
       (c) Submissions by Electronic Means.--To the extent 
     practicable, agencies shall accept submissions under section 
     553(c) of title 5, United States Code, by electronic means.
       (d) Electronic Docketing.--
       (1) In general.--To the extent practicable, as determined 
     by the agency in consultation with the Director, agencies 
     shall ensure that a publicly accessible Federal Government 
     website contains electronic dockets for rulemakings under 
     section 553 of title 5, United States Code.
       (2) Information available.--Agency electronic dockets shall 
     make publicly available online to the extent practicable, as 
     determined by the agency in consultation with the Director--
       (A) all submissions under section 553(c) of title 5, United 
     States Code; and
       (B) other materials that by agency rule or practice are 
     included in the rulemaking docket under section 553(c) of 
     title 5, United States Code, whether or not submitted 
     electronically.
       (e) Time Limitation.--Agencies shall implement the 
     requirements of this section consistent with a timetable 
     established by the Director and reported to Congress in the 
     first annual report under section 3606 of title 44 (as added 
     by this Act).

     SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION OF 
                   GOVERNMENT INFORMATION.

       (a) Purpose.--The purpose of this section is to improve the 
     methods by which Government information, including 
     information on the Internet, is organized, preserved, and 
     made accessible to the public.
       (b) Definitions.--In this section, the term--
       (1) ``Committee'' means the Interagency Committee on 
     Government Information established under subsection (c); and
       (2) ``directory'' means a taxonomy of subjects linked to 
     websites that--
       (A) organizes Government information on the Internet 
     according to subject matter; and
       (B) may be created with the participation of human editors.
       (c) Interagency Committee.--
       (1) Establishment.--Not later than 180 days after the date 
     of enactment of this title, the Director shall establish the 
     Interagency Committee on Government Information.
       (2) Membership.--The Committee shall be chaired by the 
     Director or the designee of the Director and--
       (A) shall include representatives from--
       (i) the National Archives and Records Administration;
       (ii) the offices of the Chief Information Officers from 
     Federal agencies; and
       (iii) other relevant officers from the executive branch; 
     and
       (B) may include representatives from the Federal 
     legislative and judicial branches.
       (3) Functions.--The Committee shall--
       (A) engage in public consultation to the maximum extent 
     feasible, including consultation with interested communities 
     such as public advocacy organizations;
       (B) conduct studies and submit recommendations, as provided 
     under this section, to the Director and Congress; and
       (C) share effective practices for access to, dissemination 
     of, and retention of Federal information.
       (4) Termination.--The Committee may be terminated on a date 
     determined by the Director, except the Committee may not 
     terminate before the Committee submits all recommendations 
     required under this section.
       (d) Categorizing of Information.--
       (1) Committee functions.--Not later than 2 years after the 
     date of enactment of this Act, the Committee shall submit 
     recommendations to the Director on--

[[Page H8967]]

       (A) the adoption of standards, which are open to the 
     maximum extent feasible, to enable the organization and 
     categorization of Government information--
       (i) in a way that is searchable electronically, including 
     by searchable identifiers; and
       (iii) in ways that are interoperable across agencies;
       (B) the definition of categories of Government information 
     which should be classified under the standards; and
       (C) determining priorities and developing schedules for the 
     initial implementation of the standards by agencies.
       (2) Functions of the director.--Not later than 1 year after 
     the submission of recommendations under paragraph (1), the 
     Director shall issue policies--
       (A) requiring that agencies use standards, which are open 
     to the maximum extent feasible, to enable the organization 
     and categorization of Government information--
       (i) in a way that is searchable electronically, including 
     by searchable identifiers;
       (ii) in ways that are interoperable across agencies; and
       (iii) that are, as appropriate, consistent with the 
     provisions under section 3602(f)(8) of title 44, United 
     States Code;
       (B) defining categories of Government information which 
     shall be required to be classified under the standards; and
       (C) determining priorities and developing schedules for the 
     initial implementation of the standards by agencies.
       (3) Modification of policies.--After the submission of 
     agency reports under paragraph (4), the Director shall modify 
     the policies, as needed, in consultation with the Committee 
     and interested parties.
       (4) Agency functions.--Each agency shall report annually to 
     the Director, in the report established under section 202(g), 
     on compliance of that agency with the policies issued under 
     paragraph (2)(A).
       (e) Public Access to Electronic Information.--
       (1) Committee functions.--Not later than 2 years after the 
     date of enactment of this Act, the Committee shall submit 
     recommendations to the Director and the Archivist of the 
     United States on--
       (A) the adoption by agencies of policies and procedures to 
     ensure that chapters 21, 25, 27, 29, and 31 of title 44, 
     United States Code, are applied effectively and 
     comprehensively to Government information on the Internet and 
     to other electronic records; and
       (B) the imposition of timetables for the implementation of 
     the policies and procedures by agencies.
       (2) Functions of the archivist.--Not later than 1 year 
     after the submission of recommendations by the Committee 
     under paragraph (1), the Archivist of the United States shall 
     issue policies--
       (A) requiring the adoption by agencies of policies and 
     procedures to ensure that chapters 21, 25, 27, 29, and 31 of 
     title 44, United States Code, are applied effectively and 
     comprehensively to Government information on the Internet and 
     to other electronic records; and
       (B) imposing timetables for the implementation of the 
     policies, procedures, and technologies by agencies.
       (3) Modification of policies.--After the submission of 
     agency reports under paragraph (4), the Archivist of the 
     United States shall modify the policies, as needed, in 
     consultation with the Committee and interested parties.
       (4) Agency functions.--Each agency shall report annually to 
     the Director, in the report established under section 202(g), 
     on compliance of that agency with the policies issued under 
     paragraph (2)(A).
       (f) Agency Websites.--
       (1) Standards for agency websites.--Not later than 2 years 
     after the effective date of this title, the Director shall 
     promulgate guidance for agency websites that includes--
       (A) requirements that websites include direct links to--
       (i) descriptions of the mission and statutory authority of 
     the agency;
       (ii) information made available to the public under 
     subsections (a)(1) and (b) of section 552 of title 5, United 
     States Code (commonly referred to as the ``Freedom of 
     Information Act'');
       (iii) information about the organizational structure of the 
     agency; and
       (iv) the strategic plan of the agency developed under 
     section 306 of title 5, United States Code; and
       (B) minimum agency goals to assist public users to navigate 
     agency websites, including--
       (i) speed of retrieval of search results;
       (ii) the relevance of the results;
       (iii) tools to aggregate and disaggregate data; and
       (iv) security protocols to protect information.
       (2) Agency requirements.--(A) Not later than 2 years after 
     the date of enactment of this Act, each agency shall--
       (i) consult with the Committee and solicit public comment;
       (ii) establish a process for determining which Government 
     information the agency intends to make available and 
     accessible to the public on the Internet and by other means;
       (iii) develop priorities and schedules for making 
     Government information available and accessible;
       (iv) make such final determinations, priorities, and 
     schedules available for public comment;
       (v) post such final determinations, priorities, and 
     schedules on the Internet; and
       (vi) submit such final determinations, priorities, and 
     schedules to the Director, in the report established under 
     section 202(g).
       (B) Each agency shall update determinations, priorities, 
     and schedules of the agency, as needed, after consulting with 
     the Committee and soliciting public comment, if appropriate.
       (3) Public domain directory of public federal government 
     websites.--
       (A) Establishment.--Not later than 2 years after the 
     effective date of this title, the Director and each agency 
     shall--
       (i) develop and establish a public domain directory of 
     public Federal Government websites; and
       (ii) post the directory on the Internet with a link to the 
     integrated Internet-based system established under section 
     204.
       (B) Development.--With the assistance of each agency, the 
     Director shall--
       (i) direct the development of the directory through a 
     collaborative effort, including input from--

       (I) agency librarians;
       (II) information technology managers;
       (III) program managers;
       (IV) records managers;
       (V) Federal depository librarians; and
       (VI) other interested parties; and

       (ii) develop a public domain taxonomy of subjects used to 
     review and categorize public Federal Government websites.
       (C) Update.--With the assistance of each agency, the 
     Administrator of the Office of Electronic Government shall--
       (i) update the directory as necessary, but not less than 
     every 6 months; and
       (ii) solicit interested persons for improvements to the 
     directory.
       (g) Access to Federally Funded Research and Development.--
       (1) Development and maintenance of governmentwide 
     repository and website.--
       (A) Repository and website.--The Director of the Office of 
     Management and Budget (or the Director's delegate), in 
     consultation with the Director of the Office of Science and 
     Technology Policy and other relevant agencies, shall ensure 
     the development and maintenance of--
       (i) a repository that fully integrates, to the maximum 
     extent feasible, information about research and development 
     funded by the Federal Government, and the repository shall--

       (I) include information about research and development 
     funded by the Federal Government, consistent with any 
     relevant protections for the information under section 552 of 
     title 5, United States Code, and performed by--

       (aa) institutions not a part of the Federal Government, 
     including State, local, and foreign governments; industrial 
     firms; educational institutions; not-for-profit 
     organizations; federally funded research and development 
     centers; and private individuals; and
       (bb) entities of the Federal Government, including research 
     and development laboratories, centers, and offices; and
       (II) integrate information about each separate research and 
     development task or award, including--
       (aa) the dates upon which the task or award is expected to 
     start and end;
       (bb) a brief summary describing the objective and the 
     scientific and technical focus of the task or award;
       (cc) the entity or institution performing the task or award 
     and its contact information;
       (dd) the total amount of Federal funds expected to be 
     provided to the task or award over its lifetime and the 
     amount of funds expected to be provided in each fiscal year 
     in which the work of the task or award is ongoing;
       (ee) any restrictions attached to the task or award that 
     would prevent the sharing with the general public of any or 
     all of the information required by this subsection, and the 
     reasons for such restrictions; and
       (ff) such other information as may be determined to be 
     appropriate; and
       (ii) 1 or more websites upon which all or part of the 
     repository of Federal research and development shall be made 
     available to and searchable by Federal agencies and non-
     Federal entities, including the general public, to 
     facilitate--

       (I) the coordination of Federal research and development 
     activities;
       (II) collaboration among those conducting Federal research 
     and development;
       (III) the transfer of technology among Federal agencies and 
     between Federal agencies and non-Federal entities; and
       (IV) access by policymakers and the public to information 
     concerning Federal research and development activities.

       (B) Oversight.--The Director of the Office of Management 
     and Budget shall issue any guidance determined necessary to 
     ensure that agencies provide all information requested under 
     this subsection.
       (2) Agency functions.--Any agency that funds Federal 
     research and development under this subsection shall provide 
     the information required to populate the repository in the 
     manner prescribed by the Director of the Office of Management 
     and Budget.
       (3) Committee functions.--Not later than 18 months after 
     the date of enactment of this Act, working with the Director 
     of the Office of Science and Technology Policy, and after 
     consultation with interested parties, the Committee shall 
     submit recommendations to the Director on--

[[Page H8968]]

       (A) policies to improve agency reporting of information for 
     the repository established under this subsection; and
       (B) policies to improve dissemination of the results of 
     research performed by Federal agencies and federally funded 
     research and development centers.
       (4) Functions of the director.--After submission of 
     recommendations by the Committee under paragraph (3), the 
     Director shall report on the recommendations of the Committee 
     and Director to Congress, in the E-Government report under 
     section 3606 of title 44 (as added by this Act).
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated for the development, maintenance, and 
     operation of the Governmentwide repository and website under 
     this subsection--
       (A) $2,000,000 in each of the fiscal years 2003 through 
     2005; and
       (B) such sums as are necessary in each of the fiscal years 
     2006 and 2007.

     SEC. 208. PRIVACY PROVISIONS.

       (a) Purpose.--The purpose of this section is to ensure 
     sufficient protections for the privacy of personal 
     information as agencies implement citizen-centered electronic 
     Government.
       (b) Privacy Impact Assessments.--
       (1) Responsibilities of agencies.--
       (A) In general.--An agency shall take actions described 
     under subparagraph (B) before--
       (i) developing or procuring information technology that 
     collects, maintains, or disseminates information that is in 
     an identifiable form; or
       (ii) initiating a new collection of information that--

       (I) will be collected, maintained, or disseminated using 
     information technology; and
       (II) includes any information in an identifiable form 
     permitting the physical or online contacting of a specific 
     individual, if identical questions have been posed to, or 
     identical reporting requirements imposed on, 10 or more 
     persons, other than agencies, instrumentalities, or employees 
     of the Federal Government.

       (B) Agency activities.--To the extent required under 
     subparagraph (A), each agency shall--
       (i) conduct a privacy impact assessment;
       (ii) ensure the review of the privacy impact assessment by 
     the Chief Information Officer, or equivalent official, as 
     determined by the head of the agency; and
       (iii) if practicable, after completion of the review under 
     clause (ii), make the privacy impact assessment publicly 
     available through the website of the agency, publication in 
     the Federal Register, or other means.
       (C) Sensitive information.--Subparagraph (B)(iii) may be 
     modified or waived for security reasons, or to protect 
     classified, sensitive, or private information contained in an 
     assessment.
       (D) Copy to director.--Agencies shall provide the Director 
     with a copy of the privacy impact assessment for each system 
     for which funding is requested.
       (2) Contents of a privacy impact assessment.--
       (A) In general.--The Director shall issue guidance to 
     agencies specifying the required contents of a privacy impact 
     assessment.
       (B) Guidance.--The guidance shall--
       (i) ensure that a privacy impact assessment is commensurate 
     with the size of the information system being assessed, the 
     sensitivity of information that is in an identifiable form in 
     that system, and the risk of harm from unauthorized release 
     of that information; and
       (ii) require that a privacy impact assessment address--

       (I) what information is to be collected;
       (II) why the information is being collected;
       (III) the intended use of the agency of the information;
       (IV) with whom the information will be shared;
       (V) what notice or opportunities for consent would be 
     provided to individuals regarding what information is 
     collected and how that information is shared;
       (VI) how the information will be secured; and
       (VII) whether a system of records is being created under 
     section 552a of title 5, United States Code, (commonly 
     referred to as the ``Privacy Act'').

       (3) Responsibilities of the director.--The Director shall--
       (A) develop policies and guidelines for agencies on the 
     conduct of privacy impact assessments;
       (B) oversee the implementation of the privacy impact 
     assessment process throughout the Government; and
       (C) require agencies to conduct privacy impact assessments 
     of existing information systems or ongoing collections of 
     information that is in an identifiable form as the Director 
     determines appropriate.
       (c) Privacy Protections on Agency Websites.--
       (1) Privacy policies on websites.--
       (A) Guidelines for notices.--The Director shall develop 
     guidance for privacy notices on agency websites used by the 
     public.
       (B) Contents.--The guidance shall require that a privacy 
     notice address, consistent with section 552a of title 5, 
     United States Code--
       (i) what information is to be collected;
       (ii) why the information is being collected;
       (iii) the intended use of the agency of the information;
       (iv) with whom the information will be shared;
       (v) what notice or opportunities for consent would be 
     provided to individuals regarding what information is 
     collected and how that information is shared;
       (vi) how the information will be secured; and
       (vii) the rights of the individual under section 552a of 
     title 5, United States Code (commonly referred to as the 
     ``Privacy Act''), and other laws relevant to the protection 
     of the privacy of an individual.
       (2) Privacy policies in machine-readable formats.--The 
     Director shall issue guidance requiring agencies to translate 
     privacy policies into a standardized machine-readable format.
       (d) Definition.--In this section, the term ``identifiable 
     form'' means any representation of information that permits 
     the identity of an individual to whom the information applies 
     to be reasonably inferred by either direct or indirect means.

     SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORKFORCE 
                   DEVELOPMENT.

       (a) Purpose.--The purpose of this section is to improve the 
     skills of the Federal workforce in using information 
     technology to deliver Government information and services.
       (b) Workforce Development.--
       (1) In general.--In consultation with the Director of the 
     Office of Management and Budget, the Chief Information 
     Officers Council, and the Administrator of General Services, 
     the Director of the Office of Personnel Management shall--
       (A) analyze, on an ongoing basis, the personnel needs of 
     the Federal Government related to information technology and 
     information resource management;
       (B) identify where current information technology and 
     information resource management training do not satisfy the 
     personnel needs described in subparagraph (A);
       (C) oversee the development of curricula, training methods, 
     and training priorities that correspond to the projected 
     personnel needs of the Federal Government related to 
     information technology and information resource management; 
     and
       (D) assess the training of Federal employees in information 
     technology disciplines in order to ensure that the 
     information resource management needs of the Federal 
     Government are addressed.
       (2) Information technology training programs.--The head of 
     each Executive agency, after consultation with the Director 
     of the Office of Personnel Management, the Chief Information 
     Officers Council, and the Administrator of General Services, 
     shall establish and operate information technology training 
     programs consistent with the requirements of this subsection. 
     Such programs shall--
       (A) have curricula covering a broad range of information 
     technology disciplines corresponding to the specific 
     information technology and information resource management 
     needs of the agency involved;
       (B) be developed and applied according to rigorous 
     standards; and
       (C) be designed to maximize efficiency, through the use of 
     self-paced courses, online courses, on-the-job training, and 
     the use of remote instructors, wherever such features can be 
     applied without reducing the effectiveness of the training or 
     negatively impacting academic standards.
       (3) Governmentwide policies and evaluation.--The Director 
     of the Office of Personnel Management, in coordination with 
     the Director of the Office of Management and Budget, shall 
     issue policies to promote the development of performance 
     standards for training and uniform implementation of this 
     subsection by Executive agencies, with due regard for 
     differences in program requirements among agencies that may 
     be appropriate and warranted in view of the agency mission. 
     The Director of the Office of Personnel Management shall 
     evaluate the implementation of the provisions of this 
     subsection by Executive agencies.
       (4) Chief information officer authorities and 
     responsibilities.--Subject to the authority, direction, and 
     control of the head of an Executive agency, the chief 
     information officer of such agency shall carry out all 
     powers, functions, and duties of the head of the agency with 
     respect to implementation of this subsection. The chief 
     information officer shall ensure that the policies of the 
     agency head established in accordance with this subsection 
     are implemented throughout the agency.
       (5) Information technology training reporting.--The 
     Director of the Office of Management and Budget shall ensure 
     that the heads of Executive agencies collect and maintain 
     standardized information on the information technology and 
     information resources management workforce related to the 
     implementation of this subsection.
       (6) Authority to detail employees to non-Federal 
     employers.--In carrying out the preceding provisions of this 
     subsection, the Director of the Office of Personnel 
     Management may provide for a program under which a Federal 
     employee may be detailed to a non-Federal employer. The 
     Director of the Office of Personnel Management shall 
     prescribe regulations for such program, including the 
     conditions for service and duties as the Director considers 
     necessary.
       (7) Coordination provision.--An assignment described in 
     section 3703 of title 5, United States Code, may not be made 
     unless a program under paragraph (6) is established, and the 
     assignment is made in accordance with the requirements of 
     such program.

[[Page H8969]]

       (8) Employee participation.--Subject to information 
     resource management needs and the limitations imposed by 
     resource needs in other occupational areas, and consistent 
     with their overall workforce development strategies, agencies 
     shall encourage employees to participate in occupational 
     information technology training.
       (9) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Office of Personnel Management for 
     the implementation of this subsection, $15,000,000 in fiscal 
     year 2003, and such sums as are necessary for each fiscal 
     year thereafter.
       (10) Executive agency defined.--For purposes of this 
     subsection, the term ``Executive agency'' has the meaning 
     given the term ``agency'' under section 3701 of title 5, 
     United States Code (as added by subsection (c)).
       (c) Information Technology Exchange Program.--
       (1) In general.--Subpart B of part III of title 5, United 
     States Code, is amended by adding at the end the following:

         ``CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM

``Sec.
``3701. Definitions.
``3702. General provisions.
``3703. Assignment of employees to private sector organizations.
``3704. Assignment of employees from private sector organizations.
``3705. Application to Office of the Chief Technology Officer of the 
              District of Columbia.
``3706. Reporting requirement.
``3707. Regulations.

     ``Sec. 3701. Definitions

       ``For purposes of this chapter--
       ``(1) the term `agency' means an Executive agency, but does 
     not include the General Accounting Office; and
       ``(2) the term `detail' means--
       ``(A) the assignment or loan of an employee of an agency to 
     a private sector organization without a change of position 
     from the agency that employs the individual, or
       ``(B) the assignment or loan of an employee of a private 
     sector organization to an agency without a change of position 
     from the private sector organization that employs the 
     individual,

     whichever is appropriate in the context in which such term is 
     used.

     ``Sec. 3702. General provisions

       ``(a) Assignment Authority.--On request from or with the 
     agreement of a private sector organization, and with the 
     consent of the employee concerned, the head of an agency may 
     arrange for the assignment of an employee of the agency to a 
     private sector organization or an employee of a private 
     sector organization to the agency. An eligible employee is an 
     individual who--
       ``(1) works in the field of information technology 
     management;
       ``(2) is considered an exceptional performer by the 
     individual's current employer; and
       ``(3) is expected to assume increased information 
     technology management responsibilities in the future.

     An employee of an agency shall be eligible to participate in 
     this program only if the employee is employed at the GS-11 
     level or above (or equivalent) and is serving under a career 
     or career-conditional appointment or an appointment of 
     equivalent tenure in the excepted service, and applicable 
     requirements of section 209(b) of the E-Government Act of 
     2002 are met with respect to the proposed assignment of such 
     employee.
       ``(b) Agreements.--Each agency that exercises its authority 
     under this chapter shall provide for a written agreement 
     between the agency and the employee concerned regarding the 
     terms and conditions of the employee's assignment. In the 
     case of an employee of the agency, the agreement shall--
       ``(1) require the employee to serve in the civil service, 
     upon completion of the assignment, for a period equal to the 
     length of the assignment; and
       ``(2) provide that, in the event the employee fails to 
     carry out the agreement (except for good and sufficient 
     reason, as determined by the head of the agency from which 
     assigned) the employee shall be liable to the United States 
     for payment of all expenses of the assignment.

     An amount under paragraph (2) shall be treated as a debt due 
     the United States.
       ``(c) Termination.--Assignments may be terminated by the 
     agency or private sector organization concerned for any 
     reason at any time.
       ``(d) Duration.--Assignments under this chapter shall be 
     for a period of between 3 months and 1 year, and may be 
     extended in 3-month increments for a total of not more than 1 
     additional year, except that no assignment under this chapter 
     may commence after the end of the 5-year period beginning on 
     the date of the enactment of this chapter.
       ``(e) Assistance.--The Chief Information Officers Council, 
     by agreement with the Office of Personnel Management, may 
     assist in the administration of this chapter, including by 
     maintaining lists of potential candidates for assignment 
     under this chapter, establishing mentoring relationships for 
     the benefit of individuals who are given assignments under 
     this chapter, and publicizing the program.
       ``(f) Considerations.--In exercising any authority under 
     this chapter, an agency shall take into consideration--
       ``(1) the need to ensure that small business concerns are 
     appropriately represented with respect to the assignments 
     described in sections 3703 and 3704, respectively; and
       ``(2) how assignments described in section 3703 might best 
     be used to help meet the needs of the agency for the training 
     of employees in information technology management.

     ``Sec. 3703. Assignment of employees to private sector 
       organizations

       ``(a) In General.--An employee of an agency assigned to a 
     private sector organization under this chapter is deemed, 
     during the period of the assignment, to be on detail to a 
     regular work assignment in his agency.
       ``(b) Coordination With Chapter 81.--Notwithstanding any 
     other provision of law, an employee of an agency assigned to 
     a private sector organization under this chapter is entitled 
     to retain coverage, rights, and benefits under subchapter I 
     of chapter 81, and employment during the assignment is deemed 
     employment by the United States, except that, if the employee 
     or the employee's dependents receive from the private sector 
     organization any payment under an insurance policy for which 
     the premium is wholly paid by the private sector 
     organization, or other benefit of any kind on account of the 
     same injury or death, then, the amount of such payment or 
     benefit shall be credited against any compensation otherwise 
     payable under subchapter I of chapter 81.
       ``(c) Reimbursements.--The assignment of an employee to a 
     private sector organization under this chapter may be made 
     with or without reimbursement by the private sector 
     organization for the travel and transportation expenses to or 
     from the place of assignment, subject to the same terms and 
     conditions as apply with respect to an employee of a Federal 
     agency or a State or local government under section 3375, and 
     for the pay, or a part thereof, of the employee during 
     assignment. Any reimbursements shall be credited to the 
     appropriation of the agency used for paying the travel and 
     transportation expenses or pay.
       ``(d) Tort Liability; Supervision.--The Federal Tort Claims 
     Act and any other Federal tort liability statute apply to an 
     employee of an agency assigned to a private sector 
     organization under this chapter. The supervision of the 
     duties of an employee of an agency so assigned to a private 
     sector organization may be governed by an agreement between 
     the agency and the organization.
       ``(e) Small Business Concerns.--
       ``(1) In general.--The head of each agency shall take such 
     actions as may be necessary to ensure that, of the 
     assignments made under this chapter from such agency to 
     private sector organizations in each year, at least 20 
     percent are to small business concerns.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `small business concern' means a business 
     concern that satisfies the definitions and standards 
     specified by the Administrator of the Small Business 
     Administration under section 3(a)(2) of the Small Business 
     Act (as from time to time amended by the Administrator);
       ``(B) the term `year' refers to the 12-month period 
     beginning on the date of the enactment of this chapter, and 
     each succeeding 12-month period in which any assignments 
     under this chapter may be made; and
       ``(C) the assignments `made' in a year are those commencing 
     in such year.
       ``(3) Reporting requirement.--An agency which fails to 
     comply with paragraph (1) in a year shall, within 90 days 
     after the end of such year, submit a report to the Committees 
     on Government Reform and Small Business of the House of 
     Representatives and the Committees on Governmental Affairs 
     and Small Business of the Senate. The report shall include--
       ``(A) the total number of assignments made under this 
     chapter from such agency to private sector organizations in 
     the year;
       ``(B) of that total number, the number (and percentage) 
     made to small business concerns; and
       ``(C) the reasons for the agency's noncompliance with 
     paragraph (1).
       ``(4) Exclusion.--This subsection shall not apply to an 
     agency in any year in which it makes fewer than 5 assignments 
     under this chapter to private sector organizations.

     ``Sec. 3704. Assignment of employees from private sector 
       organizations

       ``(a) In General.--An employee of a private sector 
     organization assigned to an agency under this chapter is 
     deemed, during the period of the assignment, to be on detail 
     to such agency.
       ``(b) Terms and Conditions.--An employee of a private 
     sector organization assigned to an agency under this 
     chapter--
       ``(1) may continue to receive pay and benefits from the 
     private sector organization from which he is assigned;
       ``(2) is deemed, notwithstanding subsection (a), to be an 
     employee of the agency for the purposes of--
       ``(A) chapter 73;
       ``(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607, 
     643, 654, 1905, and 1913 of title 18;
       ``(C) sections 1343, 1344, and 1349(b) of title 31;
       ``(D) the Federal Tort Claims Act and any other Federal 
     tort liability statute;
       ``(E) the Ethics in Government Act of 1978;
       ``(F) section 1043 of the Internal Revenue Code of 1986; 
     and
       ``(G) section 27 of the Office of Federal Procurement 
     Policy Act;
       ``(3) may not have access to any trade secrets or to any 
     other nonpublic information

[[Page H8970]]

     which is of commercial value to the private sector 
     organization from which he is assigned; and
       ``(4) is subject to such regulations as the President may 
     prescribe.

     The supervision of an employee of a private sector 
     organization assigned to an agency under this chapter may be 
     governed by agreement between the agency and the private 
     sector organization concerned. Such an assignment may be made 
     with or without reimbursement by the agency for the pay, or a 
     part thereof, of the employee during the period of 
     assignment, or for any contribution of the private sector 
     organization to employee benefit systems.
       ``(c) Coordination With Chapter 81.--An employee of a 
     private sector organization assigned to an agency under this 
     chapter who suffers disability or dies as a result of 
     personal injury sustained while performing duties during the 
     assignment shall be treated, for the purpose of subchapter I 
     of chapter 81, as an employee as defined by section 8101 who 
     had sustained the injury in the performance of duty, except 
     that, if the employee or the employee's dependents receive 
     from the private sector organization any payment under an 
     insurance policy for which the premium is wholly paid by the 
     private sector organization, or other benefit of any kind on 
     account of the same injury or death, then, the amount of such 
     payment or benefit shall be credited against any compensation 
     otherwise payable under subchapter I of chapter 81.
       ``(d) Prohibition Against Charging Certain Costs to the 
     Federal Government.--A private sector organization may not 
     charge the Federal Government, as direct or indirect costs 
     under a Federal contract, the costs of pay or benefits paid 
     by the organization to an employee assigned to an agency 
     under this chapter for the period of the assignment.

     ``Sec. 3705. Application to Office of the Chief Technology 
       Officer of the District of Columbia

       ``(a) In General.--The Chief Technology Officer of the 
     District of Columbia may arrange for the assignment of an 
     employee of the Office of the Chief Technology Officer to a 
     private sector organization, or an employee of a private 
     sector organization to such Office, in the same manner as the 
     head of an agency under this chapter.
       ``(b) Terms and Conditions.--An assignment made pursuant to 
     subsection (a) shall be subject to the same terms and 
     conditions as an assignment made by the head of an agency 
     under this chapter, except that in applying such terms and 
     conditions to an assignment made pursuant to subsection (a), 
     any reference in this chapter to a provision of law or 
     regulation of the United States shall be deemed to be a 
     reference to the applicable provision of law or regulation of 
     the District of Columbia, including the applicable provisions 
     of the District of Columbia Government Comprehensive Merit 
     Personnel Act of 1978 (sec. 1-601.01 et seq., D.C. Official 
     Code) and section 601 of the District of Columbia Campaign 
     Finance Reform and Conflict of Interest Act (sec. 1-1106.01, 
     D.C. Official Code).
       ``(c) Definition.--For purposes of this section, the term 
     `Office of the Chief Technology Officer' means the office 
     established in the executive branch of the government of the 
     District of Columbia under the Office of the Chief Technology 
     Officer Establishment Act of 1998 (sec. 1-1401 et seq., D.C. 
     Official Code).

     ``Sec. 3706. Reporting requirement

       ``(a) In General.--The Office of Personnel Management 
     shall, not later than April 30 and October 31 of each year, 
     prepare and submit to the Committee on Government Reform of 
     the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a semiannual report 
     summarizing the operation of this chapter during the 
     immediately preceding 6-month period ending on March 31 and 
     September 30, respectively.
       ``(b) Content.--Each report shall include, with respect to 
     the 6-month period to which such report relates--
       ``(1) the total number of individuals assigned to, and the 
     total number of individuals assigned from, each agency during 
     such period;
       ``(2) a brief description of each assignment included under 
     paragraph (1), including--
       ``(A) the name of the assigned individual, as well as the 
     private sector organization and the agency (including the 
     specific bureau or other agency component) to or from which 
     such individual was assigned;
       ``(B) the respective positions to and from which the 
     individual was assigned, including the duties and 
     responsibilities and the pay grade or level associated with 
     each; and
       ``(C) the duration and objectives of the individual's 
     assignment; and
       ``(3) such other information as the Office considers 
     appropriate.
       ``(c) Publication.--A copy of each report submitted under 
     subsection (a)--
       ``(1) shall be published in the Federal Register; and
       ``(2) shall be made publicly available on the Internet.
       ``(d) Agency Cooperation.--On request of the Office, 
     agencies shall furnish such information and reports as the 
     Office may require in order to carry out this section.

     ``Sec. 3707. Regulations

       ``The Director of the Office of Personnel Management shall 
     prescribe regulations for the administration of this 
     chapter.''.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the General Accounting Office shall 
     prepare and submit to the Committee on Government Reform of 
     the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a report on the operation 
     of chapter 37 of title 5, United States Code (as added by 
     this subsection). Such report shall include--
       (A) an evaluation of the effectiveness of the program 
     established by such chapter; and
       (B) a recommendation as to whether such program should be 
     continued (with or without modification) or allowed to lapse.
       (3) Clerical Amendment.--The analysis for part III of title 
     5, United States Code, is amended by inserting after the item 
     relating to chapter 35 the following:

``37. Information Technology Exchange Program...................3701''.
       (d) Ethics Provisions.--
       (1) One-year restriction on certain communications.--
     Section 207(c)(2)(A) of title 18, United States Code, is 
     amended--
       (A) by striking ``or'' at the end of clause (iii);
       (B) by striking the period at the end of clause (iv) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(v) assigned from a private sector organization to an 
     agency under chapter 37 of title 5.''.
       (2) Disclosure of confidential information.--Section 1905 
     of title 18, United States Code, is amended by inserting ``or 
     being an employee of a private sector organization who is or 
     was assigned to an agency under chapter 37 of title 5,'' 
     after ``(15 U.S.C. 1311-1314),''.
       (3) Contract advice.--Section 207 of title 18, United 
     States Code, is amended by adding at the end the following:
       ``(l) Contract Advice by Former Details.--Whoever, being an 
     employee of a private sector organization assigned to an 
     agency under chapter 37 of title 5, within one year after the 
     end of that assignment, knowingly represents or aids, 
     counsels, or assists in representing any other person (except 
     the United States) in connection with any contract with that 
     agency shall be punished as provided in section 216 of this 
     title.''.
       (4) Restriction on disclosure of procurement information.--
     Section 27 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 423) is amended in subsection (a)(1) by adding at 
     the end the following new sentence: ``In the case of an 
     employee of a private sector organization assigned to an 
     agency under chapter 37 of title 5, United States Code, in 
     addition to the restriction in the preceding sentence, such 
     employee shall not, other than as provided by law, knowingly 
     disclose contractor bid or proposal information or source 
     selection information during the three-year period after the 
     end of the assignment of such employee.''.
       (e) Report on Existing Exchange Programs.--
       (1) Exchange program defined.--For purposes of this 
     subsection, the term ``exchange program'' means an executive 
     exchange program, the program under subchapter VI of chapter 
     33 of title 5, United States Code, and any other program 
     which allows for--
       (A) the assignment of employees of the Federal Government 
     to non-Federal employers;
       (B) the assignment of employees of non-Federal employers to 
     the Federal Government; or
       (C) both.
       (2) Reporting requirement.--Not later than 1 year after the 
     date of the enactment of this Act, the Office of Personnel 
     Management shall prepare and submit to the Committee on 
     Government Reform of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate a report 
     identifying all existing exchange programs.
       (3) Specific information.--The report shall, for each such 
     program, include--
       (A) a brief description of the program, including its size, 
     eligibility requirements, and terms or conditions for 
     participation;
       (B) specific citation to the law or other authority under 
     which the program is established;
       (C) the names of persons to contact for more information, 
     and how they may be reached; and
       (D) any other information which the Office considers 
     appropriate.
       (f) Report on the Establishment of a Governmentwide 
     Information Technology Training Program.--
       (1) In general.--Not later January 1, 2003, the Office of 
     Personnel Management, in consultation with the Chief 
     Information Officers Council and the Administrator of General 
     Services, shall review and submit to the Committee on 
     Government Reform of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate a written 
     report on the following:
       (A) The adequacy of any existing information technology 
     training programs available to Federal employees on a 
     Governmentwide basis.
       (B)(i) If one or more such programs already exist, 
     recommendations as to how they might be improved.
       (ii) If no such program yet exists, recommendations as to 
     how such a program might be designed and established.
       (C) With respect to any recommendations under subparagraph 
     (B), how the program under chapter 37 of title 5, United 
     States Code, might be used to help carry them out.

[[Page H8971]]

       (2) Cost estimate.--The report shall, for any recommended 
     program (or improvements) under paragraph (1)(B), include the 
     estimated costs associated with the implementation and 
     operation of such program as so established (or estimated 
     difference in costs of any such program as so improved).
       (g) Technical and Conforming Amendments.--
       (1) Amendments to title 5, united states code.--Title 5, 
     United States Code, is amended--
       (A) in section 3111, by adding at the end the following:
       ``(d) Notwithstanding section 1342 of title 31, the head of 
     an agency may accept voluntary service for the United States 
     under chapter 37 of this title and regulations of the Office 
     of Personnel Management.'';
       (B) in section 4108, by striking subsection (d); and
       (C) in section 7353(b), by adding at the end the following:
       ``(4) Nothing in this section precludes an employee of a 
     private sector organization, while assigned to an agency 
     under chapter 37, from continuing to receive pay and benefits 
     from such organization in accordance with such chapter.''.
       (2) Amendment to title 18, united states code.--Section 209 
     of title 18, United States Code, is amended by adding at the 
     end the following:
       ``(g)(1) This section does not prohibit an employee of a 
     private sector organization, while assigned to an agency 
     under chapter 37 of title 5, from continuing to receive pay 
     and benefits from such organization in accordance with such 
     chapter.
       ``(2) For purposes of this subsection, the term `agency' 
     means an agency (as defined by section 3701 of title 5) and 
     the Office of the Chief Technology Officer of the District of 
     Columbia.''.
       (3) Other amendments.--Section 125(c)(1) of Public Law 100-
     238 (5 U.S.C. 8432 note) is amended--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by striking ``and'' at the end and 
     inserting ``or''; and
       (C) by adding at the end the following:
       ``(D) an individual assigned from a Federal agency to a 
     private sector organization under chapter 37 of title 5, 
     United States Code; and''.

     SEC. 210. SHARE-IN-SAVINGS INITIATIVES.

       (a) Defense Contracts.--(1) Chapter 137 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2332. Share-in-savings contracts

       ``(a) Authority To Enter Into Share-in-Savings Contracts.--
     (1) The head of an agency may enter into a share-in-savings 
     contract for information technology (as defined in section 
     11101(6) of title 40) in which the Government awards a 
     contract to improve mission-related or administrative 
     processes or to accelerate the achievement of its mission and 
     share with the contractor in savings achieved through 
     contract performance.
       ``(2)(A) Except as provided in subparagraph (B), a share-
     in-savings contract shall be awarded for a period of not more 
     than five years.
       ``(B) A share-in-savings contract may be awarded for a 
     period greater than five years, but not more than 10 years, 
     if the head of the agency determines in writing prior to 
     award of the contract that--
       ``(i) the level of risk to be assumed and the investment to 
     be undertaken by the contractor is likely to inhibit the 
     government from obtaining the needed information technology 
     competitively at a fair and reasonable price if the contract 
     is limited in duration to a period of five years or less; and
       ``(ii) usage of the information technology to be acquired 
     is likely to continue for a period of time sufficient to 
     generate reasonable benefit for the government.
       ``(3) Contracts awarded pursuant to the authority of this 
     section shall, to the maximum extent practicable, be 
     performance-based contracts that identify objective outcomes 
     and contain performance standards that will be used to 
     measure achievement and milestones that must be met before 
     payment is made.
       ``(4) Contracts awarded pursuant to the authority of this 
     section shall include a provision containing a quantifiable 
     baseline that is to be the basis upon which a savings share 
     ratio is established that governs the amount of payment a 
     contractor is to receive under the contract. Before 
     commencement of performance of such a contract, the senior 
     procurement executive of the agency shall determine in 
     writing that the terms of the provision are quantifiable and 
     will likely yield value to the Government.
       ``(5)(A) The head of the agency may retain savings realized 
     through the use of a share-in-savings contract under this 
     section that are in excess of the total amount of savings 
     paid to the contractor under the contract, but may not retain 
     any portion of such savings that is attributable to a 
     decrease in the number of civilian employees of the Federal 
     Government performing the function. Except as provided in 
     subparagraph (B), savings shall be credited to the 
     appropriation or fund against which charges were made to 
     carry out the contract and shall be used for information 
     technology.
       ``(B) Amounts retained by the agency under this subsection 
     shall--
       ``(i) without further appropriation, remain available until 
     expended; and
       ``(ii) be applied first to fund any contingent liabilities 
     associated with share-in-savings procurements that are not 
     fully funded.
       ``(b) Cancellation and Termination.--(1) If funds are not 
     made available for the continuation of a share-in-savings 
     contract entered into under this section in a subsequent 
     fiscal year, the contract shall be canceled or terminated. 
     The costs of cancellation or termination may be paid out of--
       ``(A) appropriations available for the performance of the 
     contract;
       ``(B) appropriations available for acquisition of the 
     information technology procured under the contract, and not 
     otherwise obligated; or
       ``(C) funds subsequently appropriated for payments of costs 
     of cancellation or termination, subject to the limitations in 
     paragraph (3).
       ``(2) The amount payable in the event of cancellation or 
     termination of a share-in-savings contract shall be 
     negotiated with the contractor at the time the contract is 
     entered into.
       ``(3)(A) Subject to subparagraph (B), the head of an agency 
     may enter into share-in-savings contracts under this section 
     in any given fiscal year even if funds are not made 
     specifically available for the full costs of cancellation or 
     termination of the contract if funds are available and 
     sufficient to make payments with respect to the first fiscal 
     year of the contract and the following conditions are met 
     regarding the funding of cancellation and termination 
     liability:
       ``(i) The amount of unfunded contingent liability for the 
     contract does not exceed the lesser of--
       ``(I) 25 percent of the estimated costs of a cancellation 
     or termination; or
       ``(II) $5,000,000.
       ``(ii) Unfunded contingent liability in excess of 
     $1,000,000 has been approved by the Director of the Office of 
     Management and Budget or the Director's designee.
       ``(B) The aggregate number of share-in-savings contracts 
     that may be entered into under subparagraph (A) by all 
     agencies to which this chapter applies in a fiscal year may 
     not exceed 5 in each of fiscal years 2003, 2004, and 2005.
       ``(c) Definitions.--In this section:
       ``(1) The term `contractor' means a private entity that 
     enters into a contract with an agency.
       ``(2) The term `savings' means--
       ``(A) monetary savings to an agency; or
       ``(B) savings in time or other benefits realized by the 
     agency, including enhanced revenues (other than enhanced 
     revenues from the collection of fees, taxes, debts, claims, 
     or other amounts owed the Federal Government).
       ``(3) The term `share-in-savings contract' means a contract 
     under which--
       ``(A) a contractor provides solutions for--
       ``(i) improving the agency's mission-related or 
     administrative processes; or
       ``(ii) accelerating the achievement of agency missions; and
       ``(B) the head of the agency pays the contractor an amount 
     equal to a portion of the savings derived by the agency 
     from--
       ``(i) any improvements in mission-related or administrative 
     processes that result from implementation of the solution; or
       ``(ii) acceleration of achievement of agency missions.
       ``(d) Termination.--No share-in-savings contracts may be 
     entered into under this section after September 30, 2005.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end of the following new item:

``2332. Share-in-savings contracts.''.
       (b) Other Contracts.--Title III of the Federal Property and 
     Administrative Services Act of 1949 is amended by adding at 
     the end the following:

     ``SEC. 317. SHARE-IN-SAVINGS CONTRACTS.

       ``(a) Authority To Enter Into Share-in-Savings Contracts.--
     (1) The head of an executive agency may enter into a share-
     in-savings contract for information technology (as defined in 
     section 11101(6) of title 40, United States Code) in which 
     the Government awards a contract to improve mission-related 
     or administrative processes or to accelerate the achievement 
     of its mission and share with the contractor in savings 
     achieved through contract performance.
       ``(2)(A) Except as provided in subparagraph (B), a share-
     in-savings contract shall be awarded for a period of not more 
     than five years.
       ``(B) A share-in-savings contract may be awarded for a 
     period greater than five years, but not more than 10 years, 
     if the head of the agency determines in writing prior to 
     award of the contract that--
       ``(i) the level of risk to be assumed and the investment to 
     be undertaken by the contractor is likely to inhibit the 
     government from obtaining the needed information technology 
     competitively at a fair and reasonable price if the contract 
     is limited in duration to a period of five years or less; and
       ``(ii) usage of the information technology to be acquired 
     is likely to continue for a period of time sufficient to 
     generate reasonable benefit for the government.
       ``(3) Contracts awarded pursuant to the authority of this 
     section shall, to the maximum extent practicable, be 
     performance-based contracts that identify objective outcomes 
     and contain performance standards that will be used to 
     measure achievement and milestones that must be met before 
     payment is made.
       ``(4) Contracts awarded pursuant to the authority of this 
     section shall include a provision containing a quantifiable 
     baseline that

[[Page H8972]]

     is to be the basis upon which a savings share ratio is 
     established that governs the amount of payment a contractor 
     is to receive under the contract. Before commencement of 
     performance of such a contract, the senior procurement 
     executive of the agency shall determine in writing that the 
     terms of the provision are quantifiable and will likely yield 
     value to the Government.
       ``(5)(A) The head of the agency may retain savings realized 
     through the use of a share-in-savings contract under this 
     section that are in excess of the total amount of savings 
     paid to the contractor under the contract, but may not retain 
     any portion of such savings that is attributable to a 
     decrease in the number of civilian employees of the Federal 
     Government performing the function. Except as provided in 
     subparagraph (B), savings shall be credited to the 
     appropriation or fund against which charges were made to 
     carry out the contract and shall be used for information 
     technology.
       ``(B) Amounts retained by the agency under this subsection 
     shall--
       ``(i) without further appropriation, remain available until 
     expended; and
       ``(ii) be applied first to fund any contingent liabilities 
     associated with share-in-savings procurements that are not 
     fully funded.
       ``(b) Cancellation and Termination.--(1) If funds are not 
     made available for the continuation of a share-in-savings 
     contract entered into under this section in a subsequent 
     fiscal year, the contract shall be canceled or terminated. 
     The costs of cancellation or termination may be paid out of--
       ``(A) appropriations available for the performance of the 
     contract;
       ``(B) appropriations available for acquisition of the 
     information technology procured under the contract, and not 
     otherwise obligated; or
       ``(C) funds subsequently appropriated for payments of costs 
     of cancellation or termination, subject to the limitations in 
     paragraph (3).
       ``(2) The amount payable in the event of cancellation or 
     termination of a share-in-savings contract shall be 
     negotiated with the contractor at the time the contract is 
     entered into.
       ``(3)(A) Subject to subparagraph (B), the head of an 
     executive agency may enter into share-in-savings contracts 
     under this section in any given fiscal year even if funds are 
     not made specifically available for the full costs of 
     cancellation or termination of the contract if funds are 
     available and sufficient to make payments with respect to the 
     first fiscal year of the contract and the following 
     conditions are met regarding the funding of cancellation and 
     termination liability:
       ``(i) The amount of unfunded contingent liability for the 
     contract does not exceed the lesser of--
       ``(I) 25 percent of the estimated costs of a cancellation 
     or termination; or
       ``(II) $5,000,000.
       ``(ii) Unfunded contingent liability in excess of 
     $1,000,000 has been approved by the Director of the Office of 
     Management and Budget or the Director's designee.
       ``(B) The aggregate number of share-in-savings contracts 
     that may be entered into under subparagraph (A) by all 
     executive agencies to which this chapter applies in a fiscal 
     year may not exceed 5 in each of fiscal years 2003, 2004, and 
     2005.
       ``(c) Definitions.--In this section:
       ``(1) The term `contractor' means a private entity that 
     enters into a contract with an agency.
       ``(2) The term `savings' means--
       ``(A) monetary savings to an agency; or
       ``(B) savings in time or other benefits realized by the 
     agency, including enhanced revenues (other than enhanced 
     revenues from the collection of fees, taxes, debts, claims, 
     or other amounts owed the Federal Government).
       ``(3) The term `share-in-savings contract' means a contract 
     under which--
       ``(A) a contractor provides solutions for--
       ``(i) improving the agency's mission-related or 
     administrative processes; or
       ``(ii) accelerating the achievement of agency missions; and
       ``(B) the head of the agency pays the contractor an amount 
     equal to a portion of the savings derived by the agency 
     from--
       ``(i) any improvements in mission-related or administrative 
     processes that result from implementation of the solution; or
       ``(ii) acceleration of achievement of agency missions.
       ``(d) Termination.--No share-in-savings contracts may be 
     entered into under this section after September 30, 2005.''.
       (c) Development of Incentives.--The Director of the Office 
     of Management and Budget shall, in consultation with the 
     Committee on Governmental Affairs of the Senate, the 
     Committee on Government Reform of the House of 
     Representatives, and executive agencies, develop techniques 
     to permit an executive agency to retain a portion of the 
     savings (after payment of the contractor's share of the 
     savings) derived from share-in-savings contracts as funds are 
     appropriated to the agency in future fiscal years.
       (d) Regulations.--Not later than 270 days after the date of 
     the enactment of this Act, the Federal Acquisition Regulation 
     shall be revised to implement the provisions enacted by this 
     section. Such revisions shall--
       (1) provide for the use of competitive procedures in the 
     selection and award of share-in-savings contracts to--
       (A) ensure the contractor's share of savings reflects the 
     risk involved and market conditions; and
       (B) otherwise yield greatest value to the government; and
       (2) allow appropriate regulatory flexibility to facilitate 
     the use of share-in-savings contracts by executive agencies, 
     including the use of innovative provisions for technology 
     refreshment and nonstandard Federal Acquisition Regulation 
     contract clauses.
       (e) Additional Guidance.--The Administrator of General 
     Services shall--
       (1) identify potential opportunities for the use of share-
     in-savings contracts; and
       (2) in consultation with the Director of the Office of 
     Management and Budget, provide guidance to executive agencies 
     for determining mutually beneficial savings share ratios and 
     baselines from which savings may be measured.
       (f) OMB Report to Congress.--In consultation with executive 
     agencies, the Director of the Office of Management and Budget 
     shall, not later than 2 years after the date of the enactment 
     of this Act, submit to Congress a report containing--
       (1) a description of the number of share-in-savings 
     contracts entered into by each executive agency under by this 
     section and the amendments made by this section, and, for 
     each contract identified--
       (A) the information technology acquired;
       (B) the total amount of payments made to the contractor; 
     and
       (C) the total amount of savings or other measurable 
     benefits realized;
       (2) a description of the ability of agencies to determine 
     the baseline costs of a project against which savings can be 
     measured; and
       (3) any recommendations, as the Director deems appropriate, 
     regarding additional changes in law that may be necessary to 
     ensure effective use of share-in-savings contracts by 
     executive agencies.
       (g) GAO Report to Congress.--The Comptroller General shall, 
     not later than 6 months after the report required under 
     subsection (f) is submitted to Congress, conduct a review of 
     that report and submit to Congress a report containing--
       (1) the results of the review;
       (2) an independent assessment by the Comptroller General of 
     the effectiveness of the use of share-in-savings contracts in 
     improving the mission-related and administrative processes of 
     the executive agencies and the achievement of agency 
     missions; and
       (3) a recommendation on whether the authority to enter into 
     share-in-savings contracts should be continued.
       (h) Repeal of Share-in-Savings Pilot Program.--
       (1) Repeal.--Section 11521 of title 40, United States Code, 
     is repealed.
       (2) Conforming amendments to pilot program authority.--
       (A) Section 11501 of title 40, United States Code, is 
     amended--
       (i) in the section heading, by striking ``PROGRAMS'' and 
     inserting ``PROGRAM'';
       (ii) in subsection (a)(1), by striking ``conduct pilot 
     programs'' and inserting ``conduct a pilot program pursuant 
     to the requirements of section 11521 of this title'';
       (iii) in subsection (a)(2), by striking ``each pilot 
     program'' and inserting ``the pilot program'';
       (iv) in subsection (b), by striking ``Limitations.--'' and 
     all that follows through ``$750,000,000.'' and inserting the 
     following: ``Limitation on Amount.--The total amount 
     obligated for contracts entered into under the pilot program 
     conducted under this chapter may not exceed $375,000,000.''; 
     and
       (v) in subsection (c)(1), by striking ``a pilot'' and 
     inserting ``the pilot''.
       (B) The following provisions of chapter 115 of such title 
     are each amended by striking ``a pilot'' each place it 
     appears and inserting ``the pilot'':
       (i) Section 11502(a).
       (ii) Section 11502(b).
       (iii) Section 11503(a).
       (iv) Section 11504.
       (C) Section 11505 of such chapter is amended by striking 
     ``programs'' and inserting ``program''.
       (3) Additional conforming amendments.--
       (A) Section 11522 of title 40, United States Code, is 
     redesignated as section 11521.
       (B) The chapter heading for chapter 115 of such title is 
     amended by striking ``PROGRAMS'' and inserting ``PROGRAM''.
       (C) The subchapter heading for subchapter I and for 
     subchapter II of such chapter are each amended by striking 
     ``PROGRAMS'' and inserting ``PROGRAM''.
       (D) The item relating to subchapter I in the table of 
     sections at the beginning of such chapter is amended to read 
     as follows:

              ``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.

       (E) The item relating to subchapter II in the table of 
     sections at the beginning of such chapter is amended to read 
     as follows:

               ``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.

       (F) The item relating to section 11501 in the table of 
     sections at the beginning of such is amended by striking 
     ``programs'' and inserting ``program''.
       (G) The table of sections at the beginning of such chapter 
     is amended by striking the item relating to section 11521 and 
     redesignating the item relating to section 11522 as section 
     11521.
       (H) The item relating to chapter 115 in the table of 
     chapters for subtitle III of title 40, United States Code, is 
     amended to read as follows:


[[Page H8973]]


``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM....11501''.....

       (i) Definitions.--In this section, the terms 
     ``contractor'', ``savings'', and ``share-in-savings 
     contract'' have the meanings given those terms in section 317 
     of the Federal Property and Administrative Services Act of 
     1949 (as added by subsection (b)).

     SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION 
                   TECHNOLOGY BY STATE AND LOCAL GOVERNMENTS 
                   THROUGH FEDERAL SUPPLY SCHEDULES.

       (a) Authority To Use Certain Supply Schedules.--Section 502 
     of title 40, United States Code, is amended by adding at the 
     end the following new subsection:
       ``(c) Use of Certain Supply Schedules.--
       ``(1) In general.--The Administrator may provide for the 
     use by State or local governments of Federal supply schedules 
     of the General Services Administration for automated data 
     processing equipment (including firmware), software, 
     supplies, support equipment, and services (as contained in 
     Federal supply classification code group 70).
       ``(2) Voluntary use.--In any case of the use by a State or 
     local government of a Federal supply schedule pursuant to 
     paragraph (1), participation by a firm that sells to the 
     Federal Government through the supply schedule shall be 
     voluntary with respect to a sale to the State or local 
     government through such supply schedule.
       ``(3) Definitions.--In this subsection:
       ``(A) The term `State or local government' includes any 
     State, local, regional, or tribal government, or any 
     instrumentality thereof (including any local educational 
     agency or institution of higher education).
       ``(B) The term `tribal government' means--
       ``(i) the governing body of any Indian tribe, band, nation, 
     or other organized group or community located in the 
     continental United States (excluding the State of Alaska) 
     that is recognized as eligible for the special programs and 
     services provided by the United States to Indians because of 
     their status as Indians, and
       ``(ii) any Alaska Native regional or village corporation 
     established pursuant to the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1601 et seq.).
       ``(C) The term `local educational agency' has the meaning 
     given that term in section 8013 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713).
       ``(D) The term `institution of higher education' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1001(a)).''.
       (b) Procedures.--Not later than 30 days after the date of 
     the enactment of this Act, the Administrator of General 
     Services shall establish procedures to implement section 
     501(c) of title 40, United States Code (as added by 
     subsection (a)).
       (c) Report.--Not later than December 31, 2004, the 
     Administrator shall submit to the Committee on Government 
     Reform of the House of Representatives and the Committee on 
     Governmental Affairs of the Senate a report on the 
     implementation and effects of the amendment made by 
     subsection (a).

     SEC. 212. INTEGRATED REPORTING STUDY AND PILOT PROJECTS.

       (a) Purposes.--The purposes of this section are to--
       (1) enhance the interoperability of Federal information 
     systems;
       (2) assist the public, including the regulated community, 
     in electronically submitting information to agencies under 
     Federal requirements, by reducing the burden of duplicate 
     collection and ensuring the accuracy of submitted 
     information; and
       (3) enable any person to integrate and obtain similar 
     information held by 1 or more agencies under 1 or more 
     Federal requirements without violating the privacy rights of 
     an individual.
       (b) Definitions.--In this section, the term--
       (1) ``agency'' means an Executive agency as defined under 
     section 105 of title 5, United States Code; and
       (2) ``person'' means any individual, trust, firm, joint 
     stock company, corporation (including a government 
     corporation), partnership, association, State, municipality, 
     commission, political subdivision of a State, interstate 
     body, or agency or component of the Federal Government.
       (c) Report.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Director shall oversee a study, in 
     consultation with agencies, the regulated community, public 
     interest organizations, and the public, and submit a report 
     to the Committee on Governmental Affairs of the Senate and 
     the Committee on Government Reform of the House of 
     Representatives on progress toward integrating Federal 
     information systems across agencies.
       (2) Contents.--The report under this section shall--
       (A) address the integration of data elements used in the 
     electronic collection of information within databases 
     established under Federal statute without reducing the 
     quality, accessibility, scope, or utility of the information 
     contained in each database;
       (B) address the feasibility of developing, or enabling the 
     development of, software, including Internet-based tools, for 
     use by reporting persons in assembling, documenting, and 
     validating the accuracy of information electronically 
     submitted to agencies under nonvoluntary, statutory, and 
     regulatory requirements;
       (C) address the feasibility of developing a distributed 
     information system involving, on a voluntary basis, at least 
     2 agencies, that--
       (i) provides consistent, dependable, and timely public 
     access to the information holdings of 1 or more agencies, or 
     some portion of such holdings, without requiring public users 
     to know which agency holds the information; and
       (ii) allows the integration of public information held by 
     the participating agencies;
       (D) address the feasibility of incorporating other elements 
     related to the purposes of this section at the discretion of 
     the Director; and
       (E) make any recommendations that the Director deems 
     appropriate on the use of integrated reporting and 
     information systems, to reduce the burden on reporting and 
     strengthen public access to databases within and across 
     agencies.
       (d) Pilot Projects To Encourage Integrated Collection and 
     Management of Data and Interoperability of Federal 
     Information Systems.--
       (1) In general.--In order to provide input to the study 
     under subsection (c), the Director shall designate, in 
     consultation with agencies, a series of no more than 5 pilot 
     projects that integrate data elements. The Director shall 
     consult with agencies, the regulated community, public 
     interest organizations, and the public on the implementation 
     of the pilot projects.
       (2) Goals of pilot projects.--
       (A) In general.--Each goal described under subparagraph (B) 
     shall be addressed by at least 1 pilot project each.
       (B) Goals.--The goals under this paragraph are to--
       (i) reduce information collection burdens by eliminating 
     duplicative data elements within 2 or more reporting 
     requirements;
       (ii) create interoperability between or among public 
     databases managed by 2 or more agencies using technologies 
     and techniques that facilitate public access; and
       (iii) develop, or enable the development of, software to 
     reduce errors in electronically submitted information.
       (3) Input.--Each pilot project shall seek input from users 
     on the utility of the pilot project and areas for 
     improvement. To the extent practicable, the Director shall 
     consult with relevant agencies and State, tribal, and local 
     governments in carrying out the report and pilot projects 
     under this section.
       (e) Protections.--The activities authorized under this 
     section shall afford protections for--
       (1) confidential business information consistent with 
     section 552(b)(4) of title 5, United States Code, and other 
     relevant law;
       (2) personal privacy information under sections 552(b) (6) 
     and (7)(C) and 552a of title 5, United States Code, and other 
     relevant law;
       (3) other information consistent with section 552(b)(3) of 
     title 5, United States Code, and other relevant law; and
       (4) confidential statistical information collected under a 
     confidentiality pledge, solely for statistical purposes, 
     consistent with the Office of Management and Budget's Federal 
     Statistical Confidentiality Order, and other relevant law.

     SEC. 213. COMMUNITY TECHNOLOGY CENTERS.

       (a) Purposes.--The purposes of this section are to--
       (1) study and enhance the effectiveness of community 
     technology centers, public libraries, and other institutions 
     that provide computer and Internet access to the public; and
       (2) promote awareness of the availability of on-line 
     government information and services, to users of community 
     technology centers, public libraries, and other public 
     facilities that provide access to computer technology and 
     Internet access to the public.
       (b) Study and Report.--Not later than 2 years after the 
     effective date of this title, the Administrator shall--
       (1) ensure that a study is conducted to evaluate the best 
     practices of community technology centers that have received 
     Federal funds; and
       (2) submit a report on the study to--
       (A) the Committee on Governmental Affairs of the Senate;
       (B) the Committee on Health, Education, Labor, and Pensions 
     of the Senate;
       (C) the Committee on Government Reform of the House of 
     Representatives; and
       (D) the Committee on Education and the Workforce of the 
     House of Representatives.
       (c) Contents.--The report under subsection (b) may 
     consider--
       (1) an evaluation of the best practices being used by 
     successful community technology centers;
       (2) a strategy for--
       (A) continuing the evaluation of best practices used by 
     community technology centers; and
       (B) establishing a network to share information and 
     resources as community technology centers evolve;
       (3) the identification of methods to expand the use of best 
     practices to assist community technology centers, public 
     libraries, and other institutions that provide computer and 
     Internet access to the public;
       (4) a database of all community technology centers that 
     have received Federal funds, including--
       (A) each center's name, location, services provided, 
     director, other points of contact, number of individuals 
     served; and
       (B) other relevant information;
       (5) an analysis of whether community technology centers 
     have been deployed effectively in urban and rural areas 
     throughout the Nation; and

[[Page H8974]]

       (6) recommendations of how to--
       (A) enhance the development of community technology 
     centers; and
       (B) establish a network to share information and resources.
       (d) Cooperation.--All agencies that fund community 
     technology centers shall provide to the Administrator any 
     information and assistance necessary for the completion of 
     the study and the report under this section.
       (e) Assistance.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Education, shall work with other relevant 
     Federal agencies, and other interested persons in the private 
     and nonprofit sectors to--
       (A) assist in the implementation of recommendations; and
       (B) identify other ways to assist community technology 
     centers, public libraries, and other institutions that 
     provide computer and Internet access to the public.
       (2) Types of assistance.--Assistance under this subsection 
     may include--
       (A) contribution of funds;
       (B) donations of equipment, and training in the use and 
     maintenance of the equipment; and
       (C) the provision of basic instruction or training material 
     in computer skills and Internet usage.
       (f) Online Tutorial.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary of Education, the Director of the Institute of 
     Museum and Library Services, other relevant agencies, and the 
     public, shall develop an online tutorial that--
       (A) explains how to access Government information and 
     services on the Internet; and
       (B) provides a guide to available online resources.
       (2) Distribution.--The Administrator, with assistance from 
     the Secretary of Education, shall distribute information on 
     the tutorial to community technology centers, public 
     libraries, and other institutions that afford Internet access 
     to the public.
       (g) Promotion of Community Technology Centers.--The 
     Administrator, with assistance from the Department of 
     Education and in consultation with other agencies and 
     organizations, shall promote the availability of community 
     technology centers to raise awareness within each community 
     where such a center is located.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated for the study of best practices at 
     community technology centers, for the development and 
     dissemination of the online tutorial, and for the promotion 
     of community technology centers under this section--
       (1) $2,000,000 in fiscal year 2003;
       (2) $2,000,000 in fiscal year 2004; and
       (3) such sums as are necessary in fiscal years 2005 through 
     2007.

     SEC. 214. ENHANCING CRISIS MANAGEMENT THROUGH ADVANCED 
                   INFORMATION TECHNOLOGY.

       (a) Purpose.--The purpose of this section is to improve how 
     information technology is used in coordinating and 
     facilitating information on disaster preparedness, response, 
     and recovery, while ensuring the availability of such 
     information across multiple access channels.
       (b) In General.--
       (1) Study on enhancement of crisis response.--Not later 
     than 90 days after the date of enactment of this Act, the 
     Administrator, in consultation with the Federal Emergency 
     Management Agency, shall ensure that a study is conducted on 
     using information technology to enhance crisis preparedness, 
     response, and consequence management of natural and manmade 
     disasters.
       (2) Contents.--The study under this subsection shall 
     address--
       (A) a research and implementation strategy for effective 
     use of information technology in crisis response and 
     consequence management, including the more effective use of 
     technologies, management of information technology research 
     initiatives, and incorporation of research advances into the 
     information and communications systems of--
       (i) the Federal Emergency Management Agency; and
       (ii) other Federal, State, and local agencies responsible 
     for crisis preparedness, response, and consequence 
     management; and
       (B) opportunities for research and development on enhanced 
     technologies into areas of potential improvement as 
     determined during the course of the study.
       (3) Report.--Not later than 2 years after the date on which 
     a contract is entered into under paragraph (1), the 
     Administrator shall submit a report on the study, including 
     findings and recommendations to--
       (A) the Committee on Governmental Affairs of the Senate; 
     and
       (B) the Committee on Government Reform of the House of 
     Representatives.
       (4) Interagency cooperation.--Other Federal departments and 
     agencies with responsibility for disaster relief and 
     emergency assistance shall fully cooperate with the 
     Administrator in carrying out this section.
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated for research under this subsection, such 
     sums as are necessary for fiscal year 2003.
       (c) Pilot Projects.--Based on the results of the research 
     conducted under subsection (b), the Administrator, in 
     consultation with the Federal Emergency Management Agency, 
     shall initiate pilot projects or report to Congress on other 
     activities that further the goal of maximizing the utility of 
     information technology in disaster management. The 
     Administrator shall cooperate with other relevant agencies, 
     and, if appropriate, State, local, and tribal governments, in 
     initiating such pilot projects.

     SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET.

       (a) Study and Report.--
       (1) Study.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator of General Services 
     shall request that the National Academy of Sciences, acting 
     through the National Research Council, enter into a contract 
     to conduct a study on disparities in Internet access for 
     online Government services.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator of General Services 
     shall submit to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives a final report of the study under this 
     section, which shall set forth the findings, conclusions, and 
     recommendations of the National Research Council.
       (b) Contents.--The report under subsection (a) shall 
     include a study of--
       (1) how disparities in Internet access influence the 
     effectiveness of online Government services, including a 
     review of--
       (A) the nature of disparities in Internet access;
       (B) the affordability of Internet service;
       (C) the incidence of disparities among different groups 
     within the population; and
       (D) changes in the nature of personal and public Internet 
     access that may alleviate or aggravate effective access to 
     online Government services;
       (2) how the increase in online Government services is 
     influencing the disparities in Internet access and how 
     technology development or diffusion trends may offset such 
     adverse influences; and
       (3) related societal effects arising from the interplay of 
     disparities in Internet access and the increase in online 
     Government services.
       (c) Recommendations.--The report shall include 
     recommendations on actions to ensure that online Government 
     initiatives shall not have the unintended result of 
     increasing any deficiency in public access to Government 
     services.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated $950,000 in fiscal year 2003 to carry out 
     this section.

     SEC. 216. COMMON PROTOCOLS FOR GEOGRAPHIC INFORMATION 
                   SYSTEMS.

       (a) Purposes.--The purposes of this section are to--
       (1) reduce redundant data collection and information; and
       (2) promote collaboration and use of standards for 
     government geographic information.
       (b) Definition.--In this section, the term ``geographic 
     information'' means information systems that involve 
     locational data, such as maps or other geospatial information 
     resources.
       (c) In General.--
       (1) Common protocols.--The Administrator, in consultation 
     with the Secretary of the Interior, working with the Director 
     and through an interagency group, and working with private 
     sector experts, State, local, and tribal governments, 
     commercial and international standards groups, and other 
     interested parties, shall facilitate the development of 
     common protocols for the development, acquisition, 
     maintenance, distribution, and application of geographic 
     information. If practicable, the Administrator shall 
     incorporate intergovernmental and public private geographic 
     information partnerships into efforts under this subsection.
       (2) Interagency group.--The interagency group referred to 
     under paragraph (1) shall include representatives of the 
     National Institute of Standards and Technology and other 
     agencies.
       (d) Director.--The Director shall oversee--
       (1) the interagency initiative to develop common protocols;
       (2) the coordination with State, local, and tribal 
     governments, public private partnerships, and other 
     interested persons on effective and efficient ways to align 
     geographic information and develop common protocols; and
       (3) the adoption of common standards relating to the 
     protocols.
       (e) Common Protocols.--The common protocols shall be 
     designed to--
       (1) maximize the degree to which unclassified geographic 
     information from various sources can be made electronically 
     compatible and accessible; and
       (2) promote the development of interoperable geographic 
     information systems technologies that shall--
       (A) allow widespread, low-cost use and sharing of 
     geographic data by Federal agencies, State, local, and tribal 
     governments, and the public; and
       (B) enable the enhancement of services using geographic 
     data.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section, for each of the fiscal years 2003 through 2007.

                    TITLE III--INFORMATION SECURITY

     SEC. 301. 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.--Chapter 35 of title 44, United States 
     Code, is amended by adding at the end the following new 
     subchapter:

[[Page H8975]]

                 ``SUBCHAPTER III--INFORMATION SECURITY

     ``Sec. 3541. 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. 3542. 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; and
       ``(C) availability, which means ensuring timely and 
     reliable access to and use of information.
       ``(2)(A) 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--
       ``(i) the function, operation, or use of which--
       ``(I) involves intelligence activities;
       ``(II) involves cryptologic activities related to national 
     security;
       ``(III) involves command and control of military forces;
       ``(IV) involves equipment that is an integral part of a 
     weapon or weapons system; or
       ``(V) subject to subparagraph (B), is critical to the 
     direct fulfillment of military or intelligence missions; or
       ``(ii) is protected at all times by procedures established 
     for information that have been specifically authorized under 
     criteria established by an Executive order or an Act of 
     Congress to be kept classified in the interest of national 
     defense or foreign policy.
       ``(B) Subparagraph (A)(i)(V) does not include a system that 
     is to be 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.

     ``Sec. 3543. Authority and functions of the Director

       ``(a) In General.--The Director shall oversee agency 
     information security policies and practices, including--
       ``(1) developing and overseeing the implementation of 
     policies, principles, standards, and guidelines on 
     information security, including through ensuring timely 
     agency adoption of and compliance with standards promulgated 
     under section 11331 of title 40;
       ``(2) 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;
       ``(3) 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;
       ``(4) overseeing agency compliance with the requirements of 
     this subchapter, including through any authorized action 
     under section 11303 of title 40, to enforce accountability 
     for compliance with such requirements;
       ``(5) reviewing at least annually, and approving or 
     disapproving, agency information security programs required 
     under section 3544(b);
       ``(6) coordinating information security policies and 
     procedures with related information resources management 
     policies and procedures;
       ``(7) overseeing the operation of the Federal information 
     security incident center required under section 3546; 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 3545;
       ``(B) an assessment of the development, promulgation, and 
     adoption of, and compliance with, standards developed under 
     section 20 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278g-3) and promulgated under 
     section 11331 of title 40;
       ``(C) significant deficiencies in agency information 
     security practices;
       ``(D) planned remedial action to address such deficiencies; 
     and
       ``(E) a summary of, and the views of the Director on, the 
     report prepared by the National Institute of Standards and 
     Technology under section 20(d)(10) of the National Institute 
     of Standards and Technology Act (15 U.S.C. 278g-3).
       ``(b) National Security Systems.--Except for the 
     authorities described in paragraphs (4) and (8) of subsection 
     (a), the authorities of the Director under this section shall 
     not apply to national security systems.
       ``(c) Department of Defense and Central Intelligence Agency 
     Systems.--(1) The authorities of the Director described in 
     paragraphs (1) and (2) of subsection (a) shall be delegated 
     to the Secretary of Defense in the case of systems described 
     in paragraph (2) and to the Director of Central Intelligence 
     in the case of systems described in paragraph (3).
       ``(2) The systems described in this paragraph are systems 
     that are operated by the Department of Defense, a contractor 
     of the Department of Defense, or another entity on behalf of 
     the Department of Defense that processes any information the 
     unauthorized access, use, disclosure, disruption, 
     modification, or destruction of which would have a 
     debilitating impact on the mission of the Department of 
     Defense.
       ``(3) The systems described in this paragraph are systems 
     that are operated by the Central Intelligence Agency, a 
     contractor of the Central Intelligence Agency, or another 
     entity on behalf of the Central Intelligence Agency that 
     processes any information the unauthorized access, use, 
     disclosure, disruption, modification, or destruction of which 
     would have a debilitating impact on the mission of the 
     Central Intelligence Agency.

     ``Sec. 3544. Federal agency responsibilities

       ``(a) In General.--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 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;

[[Page H8976]]

       ``(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 
     3543 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) Agency Program.--Each agency shall develop, document, 
     and implement an agencywide information security program, 
     approved by the Director under section 3543(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 3545;
       ``(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, consistent with standards and 
     guidelines issued pursuant to section 3546(b), including--
       ``(A) mitigating risks associated with such incidents 
     before substantial damage is done;
       ``(B) notifying and consulting with the Federal information 
     security incident center referred to in section 3546; and
       ``(C) 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) Agency Reporting.--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, (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) Performance Plan.--(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) Public Notice and Comment.--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. 3545. Annual independent evaluation

       ``(a) In General.--(1) Each year each agency shall have 
     performed an independent evaluation of the information 
     security program and practices of that agency to determine 
     the effectiveness of such program and practices.
       ``(2) Each evaluation 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) Independent Auditor.--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) National Security Systems.--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) Existing Evaluations.--The evaluation required by 
     this section may be based in whole or in part on an audit, 
     evaluation, or report relating to programs or practices of 
     the applicable agency.
       ``(e) Agency Reporting.--(1) 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.
       ``(2) To the extent an evaluation required under this 
     section directly relates to a national security system, the 
     evaluation results submitted to the Director shall contain 
     only a summary and assessment of that portion of the 
     evaluation directly relating to a national security system.

[[Page H8977]]

       ``(f) Protection of Information.--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) OMB Reports to Congress.--(1) The Director shall 
     summarize the results of the evaluations conducted under this 
     section in the report to Congress required under section 
     3543(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) Comptroller General.--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. 3546. Federal information security incident center

       ``(a) In General.--The Director shall ensure the operation 
     of a central Federal information security incident center 
     to--
       ``(1) provide timely technical assistance to operators of 
     agency information systems regarding security incidents, 
     including guidance on detecting and handling information 
     security incidents;
       ``(2) compile and analyze information about incidents that 
     threaten information security;
       ``(3) inform operators of agency information systems about 
     current and potential information security threats, and 
     vulnerabilities; and
       ``(4) consult with the National Institute of Standards and 
     Technology, agencies or offices operating or exercising 
     control of national security systems (including the National 
     Security Agency), and such other agencies or offices in 
     accordance with law and as directed by the President 
     regarding information security incidents and related matters.
       ``(b) National Security Systems.--Each agency operating or 
     exercising control of a national security system shall share 
     information about information security incidents, threats, 
     and vulnerabilities with the Federal information security 
     incident center to the extent consistent with standards and 
     guidelines for national security systems, issued in 
     accordance with law and as directed by the President.

     ``Sec. 3547. 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. 3548. 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. 3549. 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 the Congress 
     or the Comptroller General of the United States. While this 
     subchapter is in effect, subchapter II of this chapter shall 
     not apply.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter 35 is amended by adding at the end 
     the following:

                 ``SUBCHAPTER III--INFORMATION SECURITY

``Sec.
``3541. Purposes.
``3542. Definitions.
``3543. Authority and functions of the Director.
``3544. Federal agency responsibilities.
``3545. Annual independent evaluation.
``3546. Federal information security incident center.
``3547. National security systems.
``3548. Authorization of appropriations.
``3549. 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 3542(b)(2) of title 
     44, United States Code.
       (B) Section 2224 of title 10, United States Code, is 
     amended--
       (i) in subsection (b), by striking ``(b) Objectives and 
     Minimum Requirements.--(1)'' and inserting ``(b) Objectives 
     of the Program.--'';
       (ii) in subsection (b), by striking paragraph (2); and
       (iii) in subsection (c), in the matter preceding paragraph 
     (1), by inserting ``, including through compliance with 
     subchapter III 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. 302. 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) Standards and Guidelines.--
       ``(1) Authority to prescribe.--Except as provided under 
     paragraph (2), the Secretary of Commerce shall, on the basis 
     of standards and guidelines 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)), prescribe 
     standards and guidelines pertaining to Federal information 
     systems.
       ``(2) National security systems.--Standards and guidelines 
     for national security systems (as defined under this section) 
     shall be developed, prescribed, enforced, and overseen as 
     otherwise authorized by law and as directed by the President.
       ``(b) Mandatory Requirements.--
       ``(1) Authority to make mandatory.--Except as provided 
     under paragraph (2), the Secretary shall make standards 
     prescribed under subsection (a)(1) compulsory and binding to 
     the extent determined necessary by the Secretary to improve 
     the efficiency of operation or security of Federal 
     information systems.
       ``(2) Required mandatory standards.--(A) Standards 
     prescribed under subsection (a)(1) shall include information 
     security standards that--
       ``(i) 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) are otherwise necessary to improve the security of 
     Federal information and information systems.
       ``(B) Information security standards described in 
     subparagraph (A) shall be compulsory and binding.
       ``(c) Authority to Disapprove or Modify.--The President may 
     disapprove or modify the standards and guidelines referred to 
     in subsection (a)(1) if the President determines such action 
     to be in the public interest. The President's authority to 
     disapprove or modify such standards and guidelines may not be 
     delegated. Notice of such disapproval or modification shall 
     be published promptly in the Federal Register. Upon receiving 
     notice of such disapproval or modification, the Secretary of 
     Commerce shall immediately rescind or modify such standards 
     or guidelines as directed by the President.
       ``(d) Exercise of Authority.--To ensure fiscal and policy 
     consistency, the Secretary shall exercise the authority 
     conferred by this section subject to direction by the 
     President and in coordination with the Director of the Office 
     of Management and Budget.
       ``(e) Application of More Stringent Standards.--The head of 
     an executive agency may employ standards for the cost-
     effective information security for information systems within 
     or under the supervision of that agency that are more 
     stringent than the standards the Secretary prescribes under 
     this section if the more stringent standards--
       ``(1) contain at least the applicable standards made 
     compulsory and binding by the Secretary; and
       ``(2) are otherwise consistent with policies and guidelines 
     issued under section 3543 of title 44.
       ``(f) Decisions on Promulgation of Standards.--The decision 
     by the Secretary regarding the promulgation of any standard 
     under this section shall occur not later than 6 months after 
     the submission of the proposed standard to the Secretary 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).

[[Page H8978]]

       ``(g) Definitions.--In this section:
       ``(1) Federal information system.--The term `Federal 
     information system' means an information system used or 
     operated by an executive agency, by a contractor of an 
     executive agency, or by another organization on behalf of an 
     executive agency.
       ``(2) Information security.--The term `information 
     security' has the meaning given that term in section 
     3542(b)(1) of title 44.
       ``(3) National security system.--The term `national 
     security system' has the meaning given that term in section 
     3542(b)(2) of title 44.''.
       (b) Clerical Amendment.--The item relating to section 11331 
     in the table of sections at the beginning of chapter 113 of 
     such title is amended to read as follows:

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

     SEC. 303. 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) In General.--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 3542(b)(2) of title 44, United States 
     Code); and
       ``(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.
       ``(b) Minimum Requirements for Standards and Guidelines.--
     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 conjunction with the 
     Department of Defense, including 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) Development of Standards and Guidelines.--In 
     developing standards and guidelines required by subsections 
     (a) and (b), the Institute shall--
       ``(1) consult with other agencies and offices and the 
     private sector (including 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 Secretary of Commerce 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 section;
       ``(5) to the maximum extent practicable, ensure that such 
     standards and guidelines do not require the use or 
     procurement of specific products, including any specific 
     hardware or software;
       ``(6) to the maximum extent practicable, 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) to the maximum extent practicable, use flexible, 
     performance-based standards and guidelines that permit the 
     use of off-the-shelf commercially developed information 
     security products.
       ``(d) Information Security Functions.--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 Secretary 
     of Commerce for promulgation under section 11331 of title 40, 
     United States Code;
       ``(2) provide technical assistance to agencies, upon 
     request, 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) assist the private sector, upon request, in using and 
     applying the results of activities under this section;
       ``(7) evaluate security policies and practices developed 
     for national security systems to assess potential application 
     by agencies to strengthen information security;
       ``(8) periodically assess the effectiveness of standards 
     and guidelines developed under this section and undertake 
     revisions as appropriate;
       ``(9) 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 
     Secretary of Commerce with such standards submitted to the 
     Secretary; and
       ``(10) 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) Definitions.--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 3542(b)(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 3542(b)(2) of title 44, United 
     States Code.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Commerce 
     $20,000,000 for each of fiscal years 2003, 2004, 2005, 2006, 
     and 2007 to enable the National Institute of Standards and 
     Technology to carry out the provisions of this section.''.

     SEC. 304. 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, the Secretary of Commerce, 
     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. 305. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Computer Security Act.--Section 11332 of title 40, 
     United States Code, and the item relating to that section in 
     the table of sections for chapter 113 of such title, are 
     repealed.

[[Page H8979]]

       (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 section 1062 (44 U.S.C. 3531 note).
       (c) Paperwork Reduction Act.--(1) Section 3504(g) of title 
     44, United States Code, is amended--
       (A) by adding ``and'' at the end of paragraph (1);
       (B) in paragraph (2)--
       (i) by striking ``sections 11331 and 11332(b) and (c) of 
     title 40'' and inserting ``section 11331 of title 40 and 
     subchapter II of this chapter''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking paragraph (3).
       (2) Section 3505 of such title is amended by adding at the 
     end--
       ``(c) Inventory of Major Information Systems.--(1) The head 
     of each agency shall develop and maintain an inventory of 
     major information systems (including major 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).

     TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES

     SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       Except for those purposes for which an authorization of 
     appropriations is specifically provided in title I or II, 
     including the amendments made by such titles, there are 
     authorized to be appropriated such sums as are necessary to 
     carry out titles I and II for each of fiscal years 2003 
     through 2007.

     SEC. 402. EFFECTIVE DATES.

       (a) Titles I and II.--
       (1) In general.--Except as provided under paragraph (2), 
     titles I and II and the amendments made by such titles shall 
     take effect 120 days after the date of enactment of this Act.
       (2) Immediate enactment.--Sections 207, 214, and 215 shall 
     take effect on the date of enactment of this Act.
       (b) Titles III and IV.--Title III and this title shall take 
     effect on the date of enactment of this Act.

TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Confidential Information 
     Protection and Statistical Efficiency Act of 2002''.

     SEC. 502. DEFINITIONS.

       As used in this title:
       (1) The term ``agency'' means any entity that falls within 
     the definition of the term ``executive agency'' as defined in 
     section 102 of title 31, United States Code, or ``agency'', 
     as defined in section 3502 of title 44, United States Code.
       (2) The term ``agent'' means an individual--
       (A)(i) who is an employee of a private organization or a 
     researcher affiliated with an institution of higher learning 
     (including a person granted special sworn status by the 
     Bureau of the Census under section 23(c) of title 13, United 
     States Code), and with whom a contract or other agreement is 
     executed, on a temporary basis, by an executive agency to 
     perform exclusively statistical activities under the control 
     and supervision of an officer or employee of that agency;
       (ii) who is working under the authority of a government 
     entity with which a contract or other agreement is executed 
     by an executive agency to perform exclusively statistical 
     activities under the control of an officer or employee of 
     that agency;
       (iii) who is a self-employed researcher, a consultant, a 
     contractor, or an employee of a contractor, and with whom a 
     contract or other agreement is executed by an executive 
     agency to perform a statistical activity under the control of 
     an officer or employee of that agency; or
       (iv) who is a contractor or an employee of a contractor, 
     and who is engaged by the agency to design or maintain the 
     systems for handling or storage of data received under this 
     title; and
       (B) who agrees in writing to comply with all provisions of 
     law that affect information acquired by that agency.
       (3) The term ``business data'' means operating and 
     financial data and information about businesses, tax-exempt 
     organizations, and government entities.
       (4) The term ``identifiable form'' means any representation 
     of information that permits the identity of the respondent to 
     whom the information applies to be reasonably inferred by 
     either direct or indirect means.
       (5) The term ``nonstatistical purpose''--
       (A) means the use of data in identifiable form for any 
     purpose that is not a statistical purpose, including any 
     administrative, regulatory, law enforcement, adjudicatory, or 
     other purpose that affects the rights, privileges, or 
     benefits of a particular identifiable respondent; and
       (B) includes the disclosure under section 552 of title 5, 
     United States Code (popularly known as the Freedom of 
     Information Act) of data that are acquired for exclusively 
     statistical purposes under a pledge of confidentiality.
       (6) The term ``respondent'' means a person who, or 
     organization that, is requested or required to supply 
     information to an agency, is the subject of information 
     requested or required to be supplied to an agency, or 
     provides that information to an agency.
       (7) The term ``statistical activities''--
       (A) means the collection, compilation, processing, or 
     analysis of data for the purpose of describing or making 
     estimates concerning the whole, or relevant groups or 
     components within, the economy, society, or the natural 
     environment; and
       (B) includes the development of methods or resources that 
     support those activities, such as measurement methods, 
     models, statistical classifications, or sampling frames.
       (8) The term ``statistical agency or unit'' means an agency 
     or organizational unit of the executive branch whose 
     activities are predominantly the collection, compilation, 
     processing, or analysis of information for statistical 
     purposes.
       (9) The term ``statistical purpose''--
       (A) means the description, estimation, or analysis of the 
     characteristics of groups, without identifying the 
     individuals or organizations that comprise such groups; and
       (B) includes the development, implementation, or 
     maintenance of methods, technical or administrative 
     procedures, or information resources that support the 
     purposes described in subparagraph (A).

     SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES.

       (a) In General.--The Director of the Office of Management 
     and Budget shall coordinate and oversee the confidentiality 
     and disclosure policies established by this title. The 
     Director may promulgate rules or provide other guidance to 
     ensure consistent interpretation of this title by the 
     affected agencies.
       (b) Agency Rules.--Subject to subsection (c), agencies may 
     promulgate rules to implement this title. Rules governing 
     disclosures of information that are authorized by this title 
     shall be promulgated by the agency that originally collected 
     the information.
       (c) Review and Approval of Rules.--The Director shall 
     review any rules proposed by an agency pursuant to this title 
     for consistency with the provisions of this title and chapter 
     35 of title 44, United States Code, and such rules shall be 
     subject to the approval of the Director.
       (d) Reports.--
       (1) The head of each agency shall provide to the Director 
     of the Office of Management and Budget such reports and other 
     information as the Director requests.
       (2) Each Designated Statistical Agency referred to in 
     section 522 shall report annually to the Director of the 
     Office of Management and Budget, the Committee on Government 
     Reform of the House of Representatives, and the Committee on 
     Governmental Affairs of the Senate on the actions it has 
     taken to implement sections 523 and 524. The report shall 
     include copies of each written agreement entered into 
     pursuant to section 524(a) for the applicable year.
       (3) The Director of the Office of Management and Budget 
     shall include a summary of reports submitted to the Director 
     under paragraph (2) and actions taken by the Director to 
     advance the purposes of this title in the annual report to 
     the Congress on statistical programs prepared under section 
     3504(e)(2) of title 44, United States Code.

     SEC. 504. EFFECT ON OTHER LAWS.

       (a) Title 44, United States Code.--This title, including 
     amendments made by this title, does not diminish the 
     authority under section 3510 of title 44, United States Code, 
     of the Director of the Office of Management and Budget to 
     direct, and of an agency to make, disclosures that are not 
     inconsistent with any applicable law.
       (b) Title 13 and Title 44, United States Code.--This title, 
     including amendments made by this title, does not diminish 
     the authority of the Bureau of the Census to provide 
     information in accordance with sections 8, 16, 301, and 401 
     of title 13, United States Code, and section 2108 of title 
     44, United States Code.

[[Page H8980]]

       (c) Title 13, United States Code.--This title, including 
     amendments made by this title, shall not be construed as 
     authorizing the disclosure for nonstatistical purposes of 
     demographic data or information collected by the Census 
     Bureau pursuant to section 9 of title 13, United States Code.
       (d) Various Energy Statutes.--Data or information acquired 
     by the Energy Information Administration under a pledge of 
     confidentiality and designated by the Energy Information 
     Administration to be used for exclusively statistical 
     purposes shall not be disclosed in identifiable form for 
     nonstatistical purposes under--
       (1) section 12, 20, or 59 of the Federal Energy 
     Administration Act of 1974 (15 U.S.C. 771, 779, 790h);
       (2) section 11 of the Energy Supply and Environmental 
     Coordination Act of 1974 (15 U.S.C. 796); or
       (3) section 205 or 407 of the Department of the Energy 
     Organization Act of 1977 (42 U.S.C. 7135, 7177).
       (e) Section 201  of Congressional Budget Act of 1974.--This 
     title, including amendments made by this title, shall not be 
     construed to limit any authorities of the Congressional 
     Budget Office to work (consistent with laws governing the 
     confidentiality of information the disclosure of which would 
     be a violation of law) with databases of Designated 
     Statistical Agencies (as defined in section 522), either 
     separately or, for data that may be shared pursuant to 
     section 524 of this title or other authority, jointly in 
     order to improve the general utility of these databases for 
     the statistical purpose of analyzing pension and health care 
     financing issues.
       (f) Preemption of State Law.--Nothing in this title shall 
     preempt applicable State law regarding the confidentiality of 
     data collected by the States.
       (g) Statutes Regarding False Statements.--Notwithstanding 
     section 512, information collected by an agency for 
     exclusively statistical purposes under a pledge of 
     confidentiality may be provided by the collecting agency to a 
     law enforcement agency for the prosecution of submissions to 
     the collecting agency of false statistical information under 
     statutes that authorize criminal penalties (such as section 
     221 of title 13, United States Code) or civil penalties for 
     the provision of false statistical information, unless such 
     disclosure or use would otherwise be prohibited under Federal 
     law.
       (h) Construction.--Nothing in this title shall be construed 
     as restricting or diminishing any confidentiality protections 
     or penalties for unauthorized disclosure that otherwise apply 
     to data or information collected for statistical purposes or 
     nonstatistical purposes, including, but not limited to, 
     section 6103 of the Internal Revenue Code of 1986 (26 U.S.C. 
     6103).
       (i) Authority of Congress.--Nothing in this title shall be 
     construed to affect the authority of the Congress, including 
     its committees, members, or agents, to obtain data or 
     information for a statistical purpose, including for 
     oversight of an agency's statistical activities.

            Subtitle A--Confidential Information Protection

     SEC. 511. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds the following:
       (1) Individuals, businesses, and other organizations have 
     varying degrees of legal protection when providing 
     information to the agencies for strictly statistical 
     purposes.
       (2) Pledges of confidentiality by agencies provide 
     assurances to the public that information about individuals 
     or organizations or provided by individuals or organizations 
     for exclusively statistical purposes will be held in 
     confidence and will not be used against such individuals or 
     organizations in any agency action.
       (3) Protecting the confidentiality interests of individuals 
     or organizations who provide information under a pledge of 
     confidentiality for Federal statistical programs serves both 
     the interests of the public and the needs of society.
       (4) Declining trust of the public in the protection of 
     information provided under a pledge of confidentiality to the 
     agencies adversely affects both the accuracy and completeness 
     of statistical analyses.
       (5) Ensuring that information provided under a pledge of 
     confidentiality for statistical purposes receives protection 
     is essential in continuing public cooperation in statistical 
     programs.
       (b) Purposes.--The purposes of this subtitle are the 
     following:
       (1) To ensure that information supplied by individuals or 
     organizations to an agency for statistical purposes under a 
     pledge of confidentiality is used exclusively for statistical 
     purposes.
       (2) To ensure that individuals or organizations who supply 
     information under a pledge of confidentiality to agencies for 
     statistical purposes will neither have that information 
     disclosed in identifiable form to anyone not authorized by 
     this title nor have that information used for any purpose 
     other than a statistical purpose.
       (3) To safeguard the confidentiality of individually 
     identifiable information acquired under a pledge of 
     confidentiality for statistical purposes by controlling 
     access to, and uses made of, such information.

     SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND 
                   INFORMATION.

       (a) Use of Statistical Data or Information.--Data or 
     information acquired by an agency under a pledge of 
     confidentiality and for exclusively statistical purposes 
     shall be used by officers, employees, or agents of the agency 
     exclusively for statistical purposes.
       (b) Disclosure of Statistical Data or Information.--
       (1) Data or information acquired by an agency under a 
     pledge of confidentiality for exclusively statistical 
     purposes shall not be disclosed by an agency in identifiable 
     form, for any use other than an exclusively statistical 
     purpose, except with the informed consent of the respondent.
       (2) A disclosure pursuant to paragraph (1) is authorized 
     only when the head of the agency approves such disclosure and 
     the disclosure is not prohibited by any other law.
       (3) This section does not restrict or diminish any 
     confidentiality protections in law that otherwise apply to 
     data or information acquired by an agency under a pledge of 
     confidentiality for exclusively statistical purposes.
       (c) Rule for Use of Data or Information for Nonstatistical 
     Purposes.--A statistical agency or unit shall clearly 
     distinguish any data or information it collects for 
     nonstatistical purposes (as authorized by law) and provide 
     notice to the public, before the data or information is 
     collected, that the data or information could be used for 
     nonstatistical purposes.
       (d) Designation of Agents.--A statistical agency or unit 
     may designate agents, by contract or by entering into a 
     special agreement containing the provisions required under 
     section 502(2) for treatment as an agent under that section, 
     who may perform exclusively statistical activities, subject 
     to the limitations and penalties described in this title.

     SEC. 513. FINES AND PENALTIES.

       Whoever, being an officer, employee, or agent of an agency 
     acquiring information for exclusively statistical purposes, 
     having taken and subscribed the oath of office, or having 
     sworn to observe the limitations imposed by section 512, 
     comes into possession of such information by reason of his or 
     her being an officer, employee, or agent and, knowing that 
     the disclosure of the specific information is prohibited 
     under the provisions of this title, willfully discloses the 
     information in any manner to a person or agency not entitled 
     to receive it, shall be guilty of a class E felony and 
     imprisoned for not more than 5 years, or fined not more than 
     $250,000, or both.

                   Subtitle B--Statistical Efficiency

     SEC. 521. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds the following:
       (1) Federal statistics are an important source of 
     information for public and private decision-makers such as 
     policymakers, consumers, businesses, investors, and workers.
       (2) Federal statistical agencies should continuously seek 
     to improve their efficiency. Statutory constraints limit the 
     ability of these agencies to share data and thus to achieve 
     higher efficiency for Federal statistical programs.
       (3) The quality of Federal statistics depends on the 
     willingness of businesses to respond to statistical surveys. 
     Reducing reporting burdens will increase response rates, and 
     therefore lead to more accurate characterizations of the 
     economy.
       (4) Enhanced sharing of business data among the Bureau of 
     the Census, the Bureau of Economic Analysis, and the Bureau 
     of Labor Statistics for exclusively statistical purposes will 
     improve their ability to track more accurately the large and 
     rapidly changing nature of United States business. In 
     particular, the statistical agencies will be able to better 
     ensure that businesses are consistently classified in 
     appropriate industries, resolve data anomalies, produce 
     statistical samples that are consistently adjusted for the 
     entry and exit of new businesses in a timely manner, and 
     correct faulty reporting errors quickly and efficiently.
       (5) The Congress enacted the International Investment and 
     Trade in Services Act of 1990 that allowed the Bureau of the 
     Census, the Bureau of Economic Analysis, and the Bureau of 
     Labor Statistics to share data on foreign-owned companies. 
     The Act not only expanded detailed industry coverage from 135 
     industries to over 800 industries with no increase in the 
     data collected from respondents but also demonstrated how 
     data sharing can result in the creation of valuable data 
     products.
       (6) With subtitle A of this title, the sharing of business 
     data among the Bureau of the Census, the Bureau of Economic 
     Analysis, and the Bureau of Labor Statistics continues to 
     ensure the highest level of confidentiality for respondents 
     to statistical surveys.
       (b) Purposes.--The purposes of this subtitle are the 
     following:
       (1) To authorize the sharing of business data among the 
     Bureau of the Census, the Bureau of Economic Analysis, and 
     the Bureau of Labor Statistics for exclusively statistical 
     purposes.
       (2) To reduce the paperwork burdens imposed on businesses 
     that provide requested information to the Federal Government.
       (3) To improve the comparability and accuracy of Federal 
     economic statistics by allowing the Bureau of the Census, the 
     Bureau of Economic Analysis, and the Bureau of Labor 
     Statistics to update sample frames, develop consistent 
     classifications of establishments and companies into 
     industries, improve coverage, and reconcile significant 
     differences in data produced by the three agencies.
       (4) To increase understanding of the United States economy, 
     especially for key industry

[[Page H8981]]

     and regional statistics, to develop more accurate measures of 
     the impact of technology on productivity growth, and to 
     enhance the reliability of the Nation's most important 
     economic indicators, such as the National Income and Product 
     Accounts.

     SEC. 522. DESIGNATION OF STATISTICAL AGENCIES.

       For purposes of this subtitle, the term ``Designated 
     Statistical Agency'' means each of the following:
       (1) The Bureau of the Census of the Department of Commerce.
       (2) The Bureau of Economic Analysis of the Department of 
     Commerce.
       (3) The Bureau of Labor Statistics of the Department of 
     Labor.

     SEC. 523. RESPONSIBILITIES OF DESIGNATED STATISTICAL 
                   AGENCIES.

       The head of each of the Designated Statistical Agencies 
     shall--
       (1) identify opportunities to eliminate duplication and 
     otherwise reduce reporting burden and cost imposed on the 
     public in providing information for statistical purposes;
       (2) enter into joint statistical projects to improve the 
     quality and reduce the cost of statistical programs; and
       (3) protect the confidentiality of individually 
     identifiable information acquired for statistical purposes by 
     adhering to safeguard principles, including--
       (A) emphasizing to their officers, employees, and agents 
     the importance of protecting the confidentiality of 
     information in cases where the identity of individual 
     respondents can reasonably be inferred by either direct or 
     indirect means;
       (B) training their officers, employees, and agents in their 
     legal obligations to protect the confidentiality of 
     individually identifiable information and in the procedures 
     that must be followed to provide access to such information;
       (C) implementing appropriate measures to assure the 
     physical and electronic security of confidential data;
       (D) establishing a system of records that identifies 
     individuals accessing confidential data and the project for 
     which the data were required; and
       (E) being prepared to document their compliance with 
     safeguard principles to other agencies authorized by law to 
     monitor such compliance.

     SEC. 524. SHARING OF BUSINESS DATA AMONG DESIGNATED 
                   STATISTICAL AGENCIES.

       (a) In General.--A Designated Statistical Agency may 
     provide business data in an identifiable form to another 
     Designated Statistical Agency under the terms of a written 
     agreement among the agencies sharing the business data that 
     specifies--
       (1) the business data to be shared;
       (2) the statistical purposes for which the business data 
     are to be used;
       (3) the officers, employees, and agents authorized to 
     examine the business data to be shared; and
       (4) appropriate security procedures to safeguard the 
     confidentiality of the business data.
       (b) Responsibilities of Agencies Under Other Laws.--The 
     provision of business data by an agency to a Designated 
     Statistical Agency under this subtitle shall in no way alter 
     the responsibility of the agency providing the data under 
     other statutes (including section 552 of title 5, United 
     States Code (popularly known as the Freedom of Information 
     Act), and section 552b of title 5, United States Code 
     (popularly known as the Privacy Act of 1974)) with respect to 
     the provision or withholding of such information by the 
     agency providing the data.
       (c) Responsibilities of Officers, Employees, and Agents.--
     Examination of business data in identifiable form shall be 
     limited to the officers, employees, and agents authorized to 
     examine the individual reports in accordance with written 
     agreements pursuant to this section. Officers, employees, and 
     agents of a Designated Statistical Agency who receive data 
     pursuant to this subtitle shall be subject to all provisions 
     of law, including penalties, that relate--
       (1) to the unlawful provision of the business data that 
     would apply to the officers, employees, and agents of the 
     agency that originally obtained the information; and
       (2) to the unlawful disclosure of the business data that 
     would apply to officers, employees, and agents of the agency 
     that originally obtained the information.
       (d) Notice.--Whenever a written agreement concerns data 
     that respondents were required by law to report and the 
     respondents were not informed that the data could be shared 
     among the Designated Statistical Agencies, for exclusively 
     statistical purposes, the terms of such agreement shall be 
     described in a public notice issued by the agency that 
     intends to provide the data. Such notice shall allow a 
     minimum of 60 days for public comment.

     SEC. 525. LIMITATIONS ON USE OF BUSINESS DATA PROVIDED BY 
                   DESIGNATED STATISTICAL AGENCIES.

       (a) Use, Generally.--Business data provided by a Designated 
     Statistical Agency pursuant to this subtitle shall be used 
     exclusively for statistical purposes.
       (b) Publication.--Publication of business data acquired by 
     a Designated Statistical Agency shall occur in a manner 
     whereby the data furnished by any particular respondent are 
     not in identifiable form.

     SEC. 526. CONFORMING AMENDMENTS.

       (a) Department of Commerce.--Section 1 of the Act of 
     January 27, 1938 (15 U.S.C. 176a) is amended by striking 
     ``The'' and inserting ``Except as provided in the 
     Confidential Information Protection and Statistical 
     Efficiency Act of 2002, the''.
       (b) Title 13.--Chapter 10 of title 13, United States Code, 
     is amended--
       (1) by adding after section 401 the following:

     ``Sec. 402. Providing business data to Designated Statistical 
       Agencies

       ``The Bureau of the Census may provide business data to the 
     Bureau of Economic Analysis and the Bureau of Labor 
     Statistics (`Designated Statistical Agencies') if such 
     information is required for an authorized statistical purpose 
     and the provision is the subject of a written agreement with 
     that Designated Statistical Agency, or their successors, as 
     defined in the Confidential Information Protection and 
     Statistical Efficiency Act of 2002.''; and
       (2) in the table of sections for the chapter by adding 
     after the item relating to section 401 the following:
``402. Providing business data to Designated Statistical Agencies.''.
  Mr. SAWYER. Mr. Speaker, I rise in support of this bill. I am pleased 
that H.R. 2458 includes title 5 of the bill to improve the government's 
statistical capabilities. As the lead Democratic sponsor of this 
section, I would like to thank the gentleman from California (Mr. Horn) 
for the opportunity to work with him on this legislation and for his 
leadership on this issue. This measure has been years in the making. It 
builds on the gentleman from California's approach to provide limited 
data sharing among agencies as well as my bill to strengthen the 
confidentiality of government statistics. My remarks focus on the new 
confidentiality provisions contained in the bill.
  The confidentiality measures create a uniform set of protections for 
statistical information that would replace the current patchwork of 
rules and extent these protections to all individually identifiable 
data collected for statistical purposes. This will encourage greater 
public cooperation with government surveys and improve the quality of 
federal statistics.
  In too many instances, existing law does not ensure that personal 
information collected with remain confidential. More than 70 federal 
agencies or statistical units collect such data but only 12 are covered 
by government regulations to protect personal identifiable information 
from disclosure, and only a handful of those have the stronger 
protection of law. Some of these uncovered units collected information 
on highly sensitive topics such as substance abuse and mental health. 
Such sensitive data deserves the most stringent of protections from 
disclosure. While agency policy may have once been enough in the past, 
real public trust requires that information be shielded by the force of 
law.
  Statutory protection under this legislation would prevent any 
regulatory or law enforcement misuse of these data. This recommendation 
was first made under the Privacy Act of 1974. However, that Act has 
several loopholes that allow for disclosure of personally identifiable 
information without the informed consent of those who supplied the 
information. These are twelve categories of such exemptions and the Act 
fails to distinguish between data collected for research purposes and 
data collected for administrative purposes, offering minimal protection 
from improper disclosure.
  The commission recommended that no record or information collected 
for statistical purpose be used in identifiable form to make any 
decision or take any action directly affecting the person to whom the 
record pertains. H.R. 5215 embodies the commission's recommendation.
  Improvements that this bill would make in our nation's statistical 
programs are long overdue. The measures are needed not only to protect 
the public but also to ensure the public's continued cooperation and 
participation in essential government research. Informed public policy 
relies on it. I am pleased that this measure has the support of the 
House and urge the Senate to pass this legislation before adjourning 
for the year.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, as the federal government has 
increased its use of the Internet and other information technologies to 
conduct its business, the need for a comprehensive approach to the 
management Electronic Government initiatives has become evident. 
Therefore, Congressman Jim turner, the Ranking Member of the Government 
Reform Subcommittee on Technology and Procurement Policy, introduced 
H.R. 2458, the Electronic Government Act of 2002. H.R. 2458 is a 
bipartisan bill to enhance the management and promotion of electronic 
government services and processes and to increase the electronic 
availability of information to the public. I worked closely with 
Congressman Turner to develop this bill. H.R. 2458 was reported 
favorably by the Committee on Government Reform with a unanimous vote. 
With agreed upon changes reflected in the text before the House today, 
the bill is supported by the Science and Armed Services Committees, as 
well as by the leadership of the Senate Governmental Affairs Committee.

[[Page H8982]]

Following action by the House, the legislation is expected to be taken 
up by the Senate and acted on in its present form.
  The bill contains five titles, covering a broad array of government 
information management issues.
  Title I would strengthen government-wide approaches to improving the 
use of information technology for service delivery and governmental 
efficiency and effectiveness by establishing an Office of Electronic 
Government in the Office of Management and Budget (OMB), a statutory 
interagency Chief Information Officers (CIO) Council, a program to 
promote contractor innovation and excellence in E-Gov services and 
processes, and an interagency E-Gov Fund to provide funding for 
innovative E-Gov initiatives.
  Title II would mandate a number of specific initiatives to enhance 
Federal E-Gov capabilities. Among its provisions are requirements to 
support broader use of electronic signatures, a develop a Federal 
Internet portal, improve public access to public information in Federal 
agencies and the courts, strengthen privacy protections, improve 
Federal workforce information technology skills, and make greater use 
of share-in-savings contracts.
  Title III, ``Federal Information Security Management Act of 2002'' 
(FISMA), would permanently authorize a government-wide risk-based 
approach to information security and otherwise strengthen Government 
Information Security Reform (GISRA) provisions of the FY 2001 Defense 
Authorization Act.

  Title IV would provide authorization of appropriations for the 
legislation and effective dates for its provisions.
  Title V would reduce paperwork burdens and improve privacy 
protections by establishing new procedures for statistical data sharing 
among key statistical agencies.
  Following favorable action on the bill by the Committee on Government 
Reform, the managers renewed discussions with the Administration, 
including OMB, the Department of Defense, and the Department of 
Commerce, and the Committees on Science and Armed Services, and the 
Senate Committee on Government Affairs. The resulting agreement 
involved making a number of revisions to the reported bill. The changes 
are described below.
  Section 205 of H.R. 2458 is revised at the request of the 
Administration to ensure that on-line access to Federal court records 
not compromise legitimate privacy and security concerns. The revised 
language would require the judiciary to develop rules to clearly set 
forth litigant rights and obligations, as well as court 
responsibilities with regards to the treatment of privacy and security 
issues associated with court records.
  Section 209 is revised with the addition of subsection (b) to require 
the Director of OPM, in consultation with the Director of OMB, the CIO 
Council, and the Administration of GSA, to analyze, identify, assess, 
and oversee the government-wide development of information technology 
and information resource management training curricula and methods. 
Agency heads will use these curricula and methods to establish training 
programs that meet their needs for information technology and 
information resource management while designing the training to 
maximize efficiency and economy.
  Section 210 authorizing the government-wide use of share-in savings 
contracts for information technology has been amended to sunset in 
September 2005, rather than in 2009. The provision has also been 
amended to prohibit the agency letting the contract to retain any 
savings attributable to a decrease in the number of employees 
performing the function and to prohibit the inclusion in savings of 
enhanced revenues from the collection of fees, taxes, debts, claims, or 
other amounts collected by the government. The requirement that the 
General Accounting Office (GAO) review the Office of Management and 
Budget report to Congress on the use by the agencies of the share-in-
savings authority has been expanded to include an independent 
assessment by the GAO of the effectiveness of share-in-savings 
contracts and of whether the authority should be continued. Finally the 
section now provides for the repeal of the current share-in-savings 
pilot authority in 40 U.S.C. 11521.
  Section 213(b) requires a study to evaluate the best practices of 
community technology centers that receive federal funds. 213(b)(1) is 
amended to clarify that OMB must ensure that such a study is conducted.
  Likewise, Section 214(b)(1) is amended to clarify that OMB must 
ensure a study is conducted on the use of information technology to 
enhance crisis management.
  A new section 216 is added to Title II that calls for the development 
of protocols for geographic information systems so that industry and 
government can develop innovative multi-layered maps and analyses using 
the government's massive amount of geographic data. This section is not 
intended to inappropriately move activity into the government that is 
best left to the private sector. Furthermore, nothing in this provision 
is intended to encourage the development of technical standards that 
would require the procurement of specific hardware or software.
  A new subsection (c) is added to Sec. 3533 in section 301 of the 
bill. This subsection delegates to the Secretary of the Defense and the 
Director of Central Intelligence OMB authority under Sec. 3533(a)(1) 
for developing and overseeing the implementation of information 
security policies, and under Sec. 3533(a)(2) for providing risk-based 
information security protections, for DOD and CIA systems that process 
information whose unauthorized access, use, disclosure, disruption, 
modification, or destruction would have a debilitating impact on the 
missions of the agencies. This revision was requested by the 
Administration and the Armed Services Committee.
  Sec. 3536(a)(4) in section 301 of the bill is modified to require 
that the Federal information security incident center described under 
this section is to keep the National Institute of Standards and 
Technology (NIST), as well as other appropriate agencies, informed 
about information security incidents and related matters.
  Section 303 of the legislation as reported by the Committee on 
Government Reform would amend 40 U.S.C. 11331 to transfer to OMB the 
authority to promulgate information security standards, which is 
currently a responsibility of the Secretary of Commerce. After much 
discussion about the practical consequences of such a transfer, it was 
agreed to retain the current law's structure while strengthening it in 
a number of instances. First, FISMA's revision of 40 U.S.C. 11331, at 
sec. 303, is modified to maintain standards promulgation by the 
Secretary of Commerce, largely as currently provided in law. Sec. 11331 
is revised, however, to continue FISMA provisions for minimum mandatory 
security standards, a time limit on promulgation of the standards, and 
the elimination of waiver authority. Second, FISMA's Sec. 3533(a), in 
sec. 301, is revised accordingly to strike references to OMB 
promulgation of the NIST-developed standards. In place of that mandate, 
OMB would be required, at Sec. 3533(a)(1), to use its oversight 
authority to ensure agency use of such standards, and at 
Sec. 3533(a)(8), to include an assessment of the standards in its 
annual report to Congress. Third, to harmonize other references in the 
legislation to standards promulgation, a number of provisions in Titles 
I and II are also revised purely for the sake of consistency: i.e., in 
Sec. 3602(f)(8) in sec. 101, in sec. 202(a)(2), in sec. 202(f)(2), in 
sec. 207(d)(2)(iii), in Sec. 3534(a)(1)(B)(i) in sec. 301, in 
Sec. 20(c)(3), (e)(1), and (e)(8) in sec. 303, and in sec. 304(6). 
Finally, sec. 306 is stricken because given the transfer back to 
Commerce of all standards promulgation, there is no need to address the 
division in authority between OMB (security standards) and Commerce 
(system standards).
  Section 303's amendments to section 20 of the NIST Act, 15 U.S.C. 
278g-3, are modified in several respects. First, NIST guidance 
concerning the identification of national security systems, at 
subsection (b)(3), is to be developed in conjunction with the 
Department of Defense, including the National Security Agency. Second, 
as requested by the Administration and the Science Committee, 
subsections (c)(5), (6), and (7) are modified to be ``to the maximum 
extent practicable.'' These changes are intended to preserve the policy 
of reliance on flexible, performance-based, technology-neutral 
requirements, while recognizing that there likely will be times where 
needs such as interoperability or the reality of market predominance 
will require guidance that addresses specific technologies or products. 
Third, as requested by the Science Committee, the bill drops subsection 
(d), which would have established a NIST Office for Information 
Security Programs. Finally, also at the request of the Science 
Committee, subsection (e) is revised consistent with current law to 
provide for NIST technical assistance to agencies, at (e)(2), and to 
authorize NIST to help the private sector, upon request, with NIST 
guidance and other assistance, at (e)(6).

  Title V of this bill is based on H.R. 5215, the Confidential 
Information Protection and Statistical Efficiency Act of 2002, 
introduced by Congressman Stephen Horn, Chairman of the Government 
Reform Subcommittee on Government Efficiency, Financial Management and 
Intergovernmental Relations. Chairman Horn and Ranking Member Janice D. 
Schakowsky have worked tirelessly with the Administration to finalize 
these provisions. This section creates the opportunity for three 
federal statistical agencies to reduce reporting burdens on businesses 
while simultaneously making the process of developing economic 
statistics more efficient. This title provides the statutory changes 
necessary to allow the Bureau of Economic Analysis, the Bureau of Labor 
Statistics, and the U.S. Census Bureau to enter into negotiated 
agreements to share confidential business information. The magnitude of 
the gains in efficiency and burden reduction will turn on the 
willingness of these agencies to move swiftly to capitalize on the 
opportunities presented by these changes.

[[Page H8983]]

Title V also include language introduced in this Congress by 
Representatives Sawyer and Waxman, which provides strong protection 
from disclosure for information provided to the government by 
individuals and businesses. A new provision added to Title V provides a 
resolution to a longstanding problem of information exchange between 
the Congressional Budget Office and statistical agencies by making it 
clear that Congressional intent is for CBO, in fulfilling its 
statistical service to the Congress, to have access to the necessary 
information held by statistical agencies in the executive branch.
  Finally, a number of technical corrections are made: At 
Sec. 3532(b)(2)(A) in sec. 101 to correct a paragraph indentation; and 
at Sec. 3533(a)(8)(D) in sec. 101 to correct a subsection cross-
reference.
  With these changes, the managers of H.R. 2458 are able to state that 
the legislation before the House of Representatives today reflects 
agreement across the aisle, among key members and committees in both 
houses of Congress, and with the executive branch. I urge passage of 
this bill.
  Mr. TURNER. Mr. Speaker, I want to thank Chairman Davis for the 
bipartisan manner in which we have worked to address the issues in H.R. 
2458, the E-Government Act of 2002, as amendment. In addition to 
incorporating many of the changes agreed to by the Senate and 
Administration, we have been able to address concerns that I and others 
had with this legislation since the bill has been marked up by the 
Government Reform Committee. I thank Chairman Davis and Burton, as well 
as Representative Henry Waxman, ranking member of the Government Reform 
Committee, for working constructively with me on those issues. I 
believe all of us hope that this bill will become law before the end of 
the 107th Congress.
  The information technology revolution of the last decade has had a 
profound impact on almost all aspects of our economy and government. 
Providing a statutory basis for applying some of the impacts of that 
revolution to the federal government is a complicated, but necessary, 
step. The Subcommittee on Technology and Procurement Policy has held 
numerous hearings on the issues H.R. 2458 addresses, and I want to 
commend Chairman Davis for his attention to this topic.
  When it comes to information technology, effective use of the 
internet, and other cutting edge information resources, the federal 
government is playing catch-up with the private sector, which seems to 
have been able to integrate the new technology into its day-to-day 
operations more rapidly and effectively than the federal government. 
And while we have played catch-up, we're losing money through 
inefficiency, and we're wasting the time of millions of citizens, who 
deserve the modern effective government information technology can help 
us achieve. This bill will go some way toward improving the federal 
government's use of information technology.
  That is why I, along with Senator Lieberman, introduced the E-
Government Act, to help us move toward that goal by improving 
leadership and funding, as well as addressing other critical issues 
like privacy, training, and accessibility. I believe the measure holds 
great promise for improving government and its relationship to American 
citizens.
  The measure before us also incorporates other legislation which has 
bipartisan support, including bill Chairman Davis authored, H.R. 3844, 
the Federal Information Security Management Act, and H.R. 5215, the 
Confidential Information Protection and Statistical Efficiency Act, 
introduced by Chairman Horn. These are all important measures and I 
urge my colleagues to support them.


 Discharged From Committee on Government Reform, Amended, and Agreed to

  H. Con. Res. 466, recognizing the significance of bread in American 
history, culture, and daily diet.

                            H. Con. Res. 466

       Whereas bread is a gift of friendship in the United States;
       Whereas bread is used as a symbol of unity for families and 
     friends;
       Whereas the expression ``breaking bread together'' means 
     sharing friendship, peace, and goodwill, and the actual 
     breaking of bread together can help restore a sense of 
     normalcy and encourage a sense of community;
       Whereas bread, the staff of life, not only nourishes the 
     body but symbolizes nourishment for the human spirit;
       Whereas bread is used in many cultures to commemorate 
     milestones such as births, weddings, and deaths;
       Whereas bread is the most consumed of grain foods, is 
     recognized by the United States Department of Agriculture as 
     part of the most important food group, and plays a vital role 
     in American diets;
       Whereas Americans consume an average of 60 pounds of bread 
     annually;
       Whereas bread has been a staple of American diets for 
     hundreds of years;
       Whereas Americans are demonstrating a new interest in 
     artisan and home-style types of breads, increasingly found in 
     cafes, bakeries, restaurants, and homes across the country;
       Whereas bread sustained the Pilgrims during their long 
     ocean voyage to America and was used to celebrate their first 
     harvest in the American wilderness; and
       Whereas bread remains an important part of the family meal 
     when Americans celebrate Thanksgiving, and the designation of 
     November 2002 as National Bread Month would recognize the 
     significance of bread in American history, culture, and daily 
     diet: Now, therefore, be it
         Resolved by the House of Representatives (the Senate 
     concurring), That the Congress supports the goals of National 
     Bread Month and encourages the President to issue a 
     proclamation calling on the people of the United States to 
     observe such month with appropriate ceremonies and 
     activities.


    Taken From the Speaker's Table and Concurred in Senate Amendment

  H.R. 2621, to amend title 18, United States Code, with respect to 
consumer product protection.
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Product Packaging Protection 
     Act of 2002''.

     SEC. 2. TAMPERING WITH CONSUMER PRODUCTS.

       Section 1365 of title 18, United States Code, is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f)(1) Whoever, without the consent of the manufacturer, 
     retailer, or distributor, intentionally tampers with a 
     consumer product that is sold in interstate or foreign 
     commerce by knowingly placing or inserting any writing in the 
     consumer product, or in the container for the consumer 
     product, before the sale of the consumer product to any 
     consumer shall be fined under this title, imprisoned not more 
     than 1 year, or both.
       ``(2) Notwithstanding the provisions of paragraph (1), if 
     any person commits a violation of this subsection after a 
     prior conviction under this section becomes final, such 
     person shall be fined under this title, imprisoned for not 
     more than 3 years, or both.
       ``(3) In this subsection, the term `writing' means any form 
     of representation or communication, including hand-bills, 
     notices, or advertising, that contain letters, words, or 
     pictorial representations.''.


    Taken From the Speaker's Table and Concurred in Senate Amendment

  H.R. 3609, to amend title 49, United States Code, to enhance the 
security and safety of pipelines.
       Strike out all after the enacting clause and insert:

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

       (a) Short Title.--This Act 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.''.

[[Page H8984]]

       (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;
       ``(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;

[[Page H8985]]

       ``(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.
       ``(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, Property, or the 
     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;

[[Page H8986]]

       ``(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.
       (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

[[Page H8987]]

     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).
       (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. 13. 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,

[[Page H8988]]

     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.--
       (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.

[[Page H8989]]

       ``(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 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 
     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:


[[Page H8990]]


``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 Act, 
     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 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.

[[Page H8991]]

Attest:

     Secretary.
  Mr. DINGELL. Mr. Speaker, I rise in strong support of the Senate 
amendment to H.R. 3609. The Senate passed this bill yesterday by 
unanimous consent. The text is based upon bipartisan, bicameral 
agreements reached during the conference consideration of H.R. 4, the 
energy bill.
  I am truly pleased to be here to mark a very important event: for the 
first time in a decade, we are on the verge of enacting pipeline safety 
legislation that would actually enhance the safety of our Nation's 
pipelines. I want to commend Chairman Tauzin, Chairman Young, Ranking 
Member Oberstar, and our Senate colleagues on both sides of the aisle 
for making this possible.
  There is a mounting body of evidence that our system of pipeline 
safety regulation is wholly inadequate. Unfortunately, until now, 
Congress has failed to move on any meaningful reforms. During the last 
Congress, the House considered legislation that was more about public 
relations than public safety. Because that legislation did little more 
than restate existing law and provide cover for maintaining the deadly 
status quo, Mr. Oberstar and I--along with many of our colleagues--
successfully opposed enactment of that legislation.
  The legislation we are considering today is largely based on the 
legislation that passed the House overwhelmingly in July, while 
incorporating many of the provisions of previously passed Senate 
legislation. It is the result of a good faith, sincere effort to do 
what is doable for the sake of safety, rather than hold out for 
everything that every stakeholder ever wanted. I know it is not a 
perfect product, but it is a distinct improvement over the Senate 
legislation and current law. Let me just detail a few of the 
improvements.
  H.R. 3609, as amended, requires that a pipeline facility be inspected 
within ten years or less and re-inspected at least once every seven 
years. Facilities may be inspected more frequently and the Secretary is 
required to determine under what circumstances more frequent 
inspections are required. I certainly hope Secretary Mineta requires 
more frequent inspections, but currently, there are no time limits or 
rules for inspection of gas pipelines in high consequence areas, so 
this is a major improvement over currently law.
  The bill before us also adopts the more stringent House inspection 
provisions, spelling out very specifically the minimum requirements of 
an operators integrity management plan. It requires the Secretary of 
Transportation to establish specific criteria for judging the adequacy 
of an operator's plan and establishes a specific process for the 
Secretary to review and assess the adequacy of an operator's inspection 
plans and amendments to the plan, requiring the Secretary to order 
revisions to inadequate plans. Also, while it allows some inspections 
to be conducted by direct assessment, the legislation requires the 
Secretary to define ``direct assessment'' by rules rather than leave 
the term undefined.
  Because the Department of Transportation (DOT) has a terrible history 
of compliance with Congressional directives, the language provides a 
``fail-safe'' to ensure pipelines get inspected by placing the 
obligation to conduct inspections directly on the pipeline operator if 
the Secretary fails to undertake a rulemaking.
  The bill before us also includes the language on operator 
qualifications based upon the House-passed legislation. As with the 
inspection language, the House provision on operator qualifications is 
much more stringent and detailed. It requires the development of 
standards and criteria, the verification of operators' plans, and it 
contains a mechanism to ensure that operators develop and implement 
qualification plans even if the DOT never completes a rulemaking 
procedure. And, it begins to move toward licensing of pipeline 
operators by establishing a pilot program on licensing of pipeline 
computer control room operators.
  This bill authorizes far more money for pipeline safety than the 
original Senate language. It authorizes new technical assistance grants 
to communities and a new research program. Most importantly, this 
legislation contains the House language assuring that most of the money 
authorized by this legislation will be spent on the regulation of 
pipelines, not on less important matters.
  Other improvements to current law include new authority to issue 
Safety Orders, allowing the Secretary to take quick, meaningful action 
when there is a potentially unsafe condition; the establishment of a 
toll-free national three-digit ``call before you dig'' or ``one-call'' 
phone system; increased emphasis on environmental protection; and more 
enforcement tools to make it easier for both DOT and the Department of 
Justice to go after bad actors.
  This is a good piece of legislation and I again want to express my 
appreciation to those in the environmental community and organized 
labor who have worked with me over the years on these matters. They, 
along with the industry stakeholders who have chosen to play a 
constructive role net his process, deserve to be recognized for helping 
us make it possible to go forward with the support of every Member of 
our Committee and hopefully today with support of the entire House of 
Representatives.
  Mr. Speaker, I urge passage of the bill.
  Mr. OBERSTAR. Mr. Speaker, I rise in support of the Senate amendment 
to H.R. 3609, the Pipeline Safety and Improvement Act of 2002. This 
evening, the House finally will be able to enact pipeline safety 
legislation that is worthy of the name. It is has been a long and 
difficult journey to reach this point. Energy and Commerce Committee 
Ranking Member Dingell and I introduced strong pipeline safety 
legislation in this and the last Congress, while at the same time we 
fought to forestall the passage of much weaker legislation. Although it 
has required two more years of difficult negotiations on pipeline 
safety, I am pleased to say that nearly all the areas that Congressman 
Dingell and I wanted to address are covered in the bill.
  Is this bill perfect? No, but it has come a long way from the version 
that was introduced last December. My primary criticism of this 
compromise bill is that it does not go far enough in giving citizens 
information about the status of pipelines serving their communities--
the so-called community right-to-know issue. However, in the current 
security-focused environment, we were unable to arrive at language that 
a majority of our colleagues could agree upon. Notwithstanding that 
limitation, this is a very good bill deserving of your support. Let me 
share with you some highlights of the Pipeline Safety Improvement Act 
of 2002.
  First and foremost, this bill establishes specific timeframes for 
inspecting all natural gas transmission pipelines serving high 
consequence areas (e.g., high population areas). These pipelines must 
all be inspected within ten years of enactment of this legislation. 
Moreover, at least 50 percent of these pipelines must be inspected 
within the first five years. Pipeline operators must prioritize their 
facilities based on risk factors and ensure that assessments with the 
highest risks are given priority and inspections are completed within 
this first five-year period. Subsequently, these pipelines must be re-
inspected no less frequently than ever seven years. At first, the 
natural gas pipeline industry strenuously opposed any periodic 
inspection requirements. When it became apparent that they couldn't win 
that position, they suggested inspection timeframes of up to 20 years 
and the Office of Pipeline Safety (OPS) appeared to agree with them. 
Fortunately, the interests of safety prevailed over the interests of 
the bottom line.
  The bill also includes a requirement that pipeline operators provide 
training to ensure that individuals have the necessary knowledge and 
skills to perform their tasks in a safe manner. The bill specifically 
excludes the mere observation of an employee's on-the-job performance 
to decide whether or not he or she is qualified to perform the task to 
which he is assigned. The bill also requires OPS to establish a pilot 
program to certify pipeline employees who operate computer systems for 
controlling pipelines. This pilot program will help us determine 
whether we should require pipeline operators to certify all pipeline 
employees in safety-sensitive positions.

  In addition, the bill raises the civil penalties for each violation 
from $25,000 to $100,000, and the maximum civil penalty from $500,000 
to $1 million. These penalties are significantly higher than the 
penalties included in H.R. 3609, as reported. The bill also contains 
meaningful protections for employees who provide information about 
violations of Federal law governing pipeline safety or refuse to 
participate in any illegal practices relating to pipeline safety.
  The bill allows for the coordination of environmental reviews for 
pipeline repair projects. It limits the instances where discretionary 
administrative environmental reviews might be minimized or eliminated 
to repair projects that would result in no more than minimal adverse 
effects on the environment and requires that an Interagency Committee 
of Federal agencies with responsibilities relating to pipeline repair 
projects unanimously agree that the environmental impact would be 
minimal.
  This bill contains a number of other provisions that also should 
greatly advance the goal of improving pipeline safety. However, I must 
offer a word of caution. Simply because we enact a good, strong 
pipeline safety bill is no guarantee that its provisions will be 
vigorously carried out. In 1988 and 1992, Congress passed pipeline 
safety laws that required significant pipeline safety improvements, 
only to watch OPS basically ignore the law. Likewise, the Office of 
Pipeline Safety has been unresponsive, or slow to act, on safety 
recommendations made by the Department of Transportation's Office of 
Inspector General, the General Accounting Office, and the National 
Transportation Safety Board. The current leadership at OPS and at its 
parent agency, the Research and Special Programs Administration, has 
promised to do a better job. Nevertheless, the Administration needs to

[[Page H8992]]

know that we in the Congress are watching to make certain that the 
provisions of this pipeline safety act are being carried out 
faithfully.
  Two years ago, I helped lead the effort in the House to defeat a 
Senate-passed, pipeline safety bill. That bill was too weak, especially 
in light of the then-recent tragedies in Bellingham, Washington and 
Carlsbad, New Mexico. We defeated that bill, believing that no bill was 
better than a weak one. That was the right thing to do. Now, we finally 
have a strong bill--one that will significantly improve pipeline safety 
and protect those who live near them or work on them. It is sad that it 
took so long to do the right thing for the American people.
  I urge my colleagues to support the Senate amendment to H.R. 3609, 
the Pipeline Safety Improvement Act of 2002.
  Mr. YOUNG of Alaska. Mr. Speaker, I am pleased to submit the 
accompanying Joint Explanatory Statement of the Pipeline Safety 
Improvement Act of 2002.
  To expedite enactment of the significant pipeline safety reforms 
included in this bill, the leadership of the House Transportation and 
Infrastructure and Energy and Commerce Committees has worked with the 
Senate Commerce, Science, and Transportation Committee in developing 
the bill. This Joint Explanatory Statement therefore represents the 
views of the Chairmen and Ranking Members of the Transportation and 
Infrastructure Committee and the Energy and Commerce Committee, along 
with the Chairman and Ranking Member of the Senate Commerce Committee.
  This Joint Explanatory Statement will provide legislative history for 
interpreting this important pipeline safety legislation.

 JOINT EXPLANATORY STATEMENT OF THE HONORABLE DON YOUNG, THE HONORABLE 
  JAMES L. OBERSTAR, THE HONORABLE W.J. (BILLY) TAUZIN, THE HONORABLE 
 JOHN D. DINGELL AND THE HONORABLE ERNEST HOLLINGS THE HONORABLE JOHN 
                                 MCCAIN

                           November 14, 2002


 SECTION-BY-SECTION ANALYSIS OF H.R. 3609 PIPELINE SAFETY IMPROVEMENT 
                              ACT OF 2002

     Section 1. Short title; amendment of title 49, United States 
         Code.
       This section designates the act as the ``Pipeline Safety 
     Improvement Act of 2002.''
     Section 2. One-call notification programs.
       This section requires that state one-call notification 
     programs provide for the participation of government 
     operators and contact excavators. Section 2 also requires 
     that state one-call notification programs document enumerated 
     items set forth in the statute. Additionally, the requirement 
     that the Secretary of Transportation include certain 
     information in reports submitted under section 60124 of Title 
     49 is made permanent. Authorizations for appropriations for 
     grants to states for fiscal years 2003 through 2006 are 
     provided at $1,000,000 per year, and grants for 
     administration in section 6107(b) are updated for fiscal 
     years 2003 through 2006. This section also amends section 
     6105 of Title 49 by requiring the Secretary of Transportation 
     to encourage the states, operators of one-cell notification 
     programs, operators of underground facilities, and excavators 
     (including government and contract excavators) to use the 
     practices set forth in the best practices report entitled 
     ``Common Ground,'' as periodically updated, and requires the 
     Secretary of Transportation to provide technical assistance 
     to a non-profit organization specifically established for the 
     purpose of reducing construction-related damage to 
     underground facilities. Authorizations for appropriations for 
     fiscal years 2003 through 2006 are provided at $500,000 per 
     year, but would not be derived from user fees collected under 
     section 60301 of title 49.
     Section 3. One-call notification of pipeline operators.
       This section provides for the enforcement of one-call 
     notification programs by a state authority if the state's 
     program meets the requirements set forth in the statute. The 
     application of the term ``person'' who intends to engage in 
     an activity necessitating the use of the one-call system is 
     expanded to include government employees or contractors.
       This section amends section 60123(d) of Title 49 by 
     rearranging the phrase ``knowingly and willfully'' to address 
     the problem raised when a court interpreted existing law to 
     require a knowing and willful standard to, not only engaging 
     in an excavation activity, but also to subsequently damaging 
     a pipeline facility. The consequence of the court's 
     interpretation makes prosecutions more difficult by requiring 
     the government to show the defendant knew subsequent damages 
     would result from excavation activity and that the 
     defendant's conduct was willful. This section of the bill 
     corrects the court's interpretation by now requiring that the 
     ``knowingly and willfully'' standard apply only to engaging 
     in an excavation activity.
       This section also provides that penalties under the 
     criminal penalties section can be reduced if the violator 
     promptly reports a violation.
     Section 4. State oversight role.
       This section amends section 60106 of Title 49 to allow the 
     Secretary of Transportation to make an agreement with a state 
     authority authorizing the state authority to participate in 
     the oversight of interestate pipeline transportation 
     including incident investigation, new construction, and 
     other inspection and investigatory duties. However the 
     Secretary shall not delegate the enforcement of safety 
     standards for interstate pipeline facilities to a state 
     authority. This section further provides that the 
     Secretary may terminate agreements with the State 
     authorities if a gap results in the State authority's 
     oversight responsibilities of intrastate pipeline 
     transportation, the State authority fails to meet 
     requirements set forth in this section, or continued 
     participation in the oversight of interstate pipeline 
     transportation would not promote pipeline safety. Existing 
     state agreements shall continue until a new agreement 
     between the state and the DOT is executed or December 31, 
     2003, whichever is sooner.
     Section 5. Public education programs.
       Section 5 amends section 60116 of Title 49 to include 
     hazardous liquid pipeline facilities in this section 
     requiring a continuing program to educate the public on the 
     use of one-call notification systems, the possible hazards 
     associated with unintended releases, and how to tell if an 
     unintended release occurred, what steps should be taken for 
     public safety in the event of a pipeline release, and how to 
     report such an event. This section also requires owners and 
     operators to review existing public education programs for 
     effectiveness and to modify their programs as necessary. In 
     addition, the section allows the Secretary to issue standards 
     prescribing the elements of public education programs and 
     develop materials for use in such programs.
       Previous versions of Senate-passed pipeline safety 
     legislation also included a provision calling for the 
     coordination of emergency preparedness between operators of 
     pipeline facilities and state and local officials, as well as 
     to provide for public access to certain safety information. 
     Agreement was not reached on how safety information could be 
     accessed by the public in a manner that would protect 
     security-sensitive information from distribution. The 
     managers agreed that this issue would be better dealt with in 
     the context of the pending homeland security legislation.
     Section 6. Protection of employees providing pipeline safety 
         information.
       This section adds provisions for the protection of 
     employees who are discharged or otherwise discriminated 
     against with respect to compensation, terms, conditions, or 
     privileges of employment for (1) providing information to the 
     Federal government about alleged violations of Federal law 
     relating to pipeline safety; (2) refusing to participate in 
     any practice made illegal by Federal law relating to pipeline 
     safety; or (3) assisting or participating in any proceeding 
     to carry out the purposes of pipeline safety legislation. 
     This section establishes the procedural framework in which 
     complaints are handled by the Secretary of Labor and the 
     remedies available to the prevailing party.
       This section contains a provision that essentially says if 
     a preliminary order provides that an employee must be allowed 
     to return to work, the filing of any objection by the 
     employer ``shall not operate to stay any reinstatement remedy 
     contained in the preliminary order.'' The intention of this 
     language is to assure that the mere filing of an objection 
     would not work as an automatic stay, thus precluding an 
     employee from returning to work pending the outcome of the 
     matter. However, this language would not preclude an employer 
     from filing an independent motion for a stay if sufficient 
     grounds exist for the filing of such a motion.
     Section 7. Safety orders.
       Section 7 adds a paragraph to section 60117 of Title 49 to 
     give the Secretary of Transportation authority to order an 
     operator of a facility to take corrective action if the 
     Secretary decides that a potential safety-related condition 
     exists. The office of Pipeline Safety (OPS) requested this 
     provision so that corrective action could be taken 
     immediately rather than waiting until a facility is 
     classified as ``hazardous'' prior to requiring corrective 
     action.
     Section 8. Penalties.
       This section modifies the existing penalties provisions set 
     forth in section 60112 of Title 49 to allow the Secretary of 
     Transportation to decide if the operation of a pipeline 
     facility, is ``or would be'' hazardous to life, property, or 
     the environment. The purpose of the modification is to give 
     the Secretary authority to take action prior to the facility, 
     the construction of the facility, or any component of the 
     facility actually becoming hazardous, thereby establishing a 
     framework of preventative actions, rather than actions only 
     in response to an imminent hazard.
       In subsection (a)(1) of section 60122, the amounts of the 
     penalties have been increased. The per day, per incident, 
     amount has been increased from $25,000 to $100,000. The 
     maximum civil penalty for a related series of violations has 
     been increased from $500,000 to $1,000,000. The section of 
     the bill also provides that, in determining the amount of a 
     civil penalty, the Secretary of Transportation shall consider 
     as an additional consideration in section 60122(b) of Title 
     49, the adverse impact on the environment. The Secretary of 
     Transportation may

[[Page H8993]]

     consider the economic benefit gained from the violation 
     without reduction because of subsequent damages.
       This section also modifies the enforcement section of the 
     statute (section 60120(a)(1) of Title 49) by specifically 
     providing that the court may award appropriate relief, 
     including a temporary or permanent injunction, punitive 
     damages, and the assessment of civil penalties. The current 
     statutory language specifying that the Attorney General 
     may proceed only at the request of the Secretary of 
     Transportation remains in effect.
       Section 8 also requires that the Comptroller General 
     conduct a study of the actions, policies, and procedures of 
     the Secretary of Transportation for assessing and collecting 
     fines and penalties.
     Section 9. Pipeline safety information grants to communities.
       Section 9 requires the Secretary of Transportation to make 
     grants for technical assistance to local communities and 
     groups of individuals (not including for-profit entities) 
     relating to the safety of pipelines in local communities. The 
     purpose of this provision is to provide grants to communities 
     for technical assistance such as engineering or scientific 
     analysis of pipeline safety issues. Applicants must compete 
     for the grants in a procedure established by the Secretary of 
     Transportation, who shall also establish the criteria for the 
     recipients. Additionally, the Secretary must establish 
     procedures to ensure that the funds have been properly 
     accounted for and spent in a manner consistent with the 
     purpose of the grants. Any one-grant recipient may not 
     receive more than $50,000. The grant funds cannot be used for 
     lobbying or in direct support of litigation. This section 
     authorizes the appropriation of $1,000,000 for each of the 
     fiscal years 2003 through 2006.
     Section 10. Operator assistance in investigations.
       This section requires the operator of a pipeline facility 
     to make available information and records to the Secretary of 
     Transportation or the National Safety Transportation Board 
     (NTSB) in the event of an accident, subject to constitutional 
     protections for operators and employees. Actions taken by an 
     operator pursuant to this section shall be in accordance with 
     the terms and conditions of any applicable collective 
     bargaining agreement.
     Section 11. Population encroachment and rights-of-way.
       This section requires the Secretary of Transportation, 
     along with the Federal Energy Regulatory Commission (FERC) 
     and other federal agencies and state and local governments, 
     to study land use practices and zoning ordinances, as well as 
     the preservation of environmental resources, with regard to 
     pipeline rights-of-way. Based upon the purposes set forth in 
     this section, a report is to be written that identifies 
     successful practices, ordinances, and laws addressing 
     population encroachment on pipeline rights-of-way, being 
     mindful of protecting the public safety, pipeline workers, 
     and the environment. The report must be completed within one 
     year from the date of enactment and provided to Congress, 
     appropriate federal agencies, and the States for further 
     distribution to the appropriate local authorities.
     Section 12. Pipeline integrity, safety, and reliability 
         research and development.
       This section requires the heads of the participating 
     agencies to carry out a program of research, development, 
     demonstration, and standardization to ensure the integrity of 
     pipelines. The Secretary of Energy, Secretary of 
     Transportation, and the Director of the National Institute of 
     Standards and Technology (NIST) each have defined roles. 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 
     submit to Congress a 5-year plan to guide the activities 
     under this section. The plan shall also be submitted to the 
     Technical Pipeline Safety Standards Committee and the 
     Technical Hazardous Liquid Pipeline Safety Standards 
     Committee for review. The section authorizes appropriations 
     for the fiscal years 2003 through 2006 in the following 
     amounts: Secretary of Energy: $10,000,000; the Secretary of 
     Transportation: $10,000,000; and the National Institute of 
     Standards and Technology: $5,000,000. Any sums authorized 
     pursuant to this section shall not be derived from user fees. 
     In addition $3,000,000 from the Oil Spill Liability Trust 
     Fund shall be transferred to the Secretary of Transportation, 
     as provided in appropriations Acts, to carry out programs for 
     detection, prevention, and mitigation of oil spills for each 
     of the fiscal years 2003 through 2006.
       Even though the Secretary of Transportation does not 
     regulate gathering lines, the participating agencies are 
     encouraged to include such lines in their research, 
     development, demonstration, and standardization efforts on 
     the integrity of gathering lines.
     Section 13. Pipeline qualification programs.
       This section requires the Secretary of Transportation to 
     require operators of pipeline facilities to develop 
     qualification programs for their personnel who perform 
     covered tasks (as defined in the Code of Federal 
     Regulations). This section also requires the Secretary to 
     have in place standards and criteria for such qualification 
     programs, including a method for examining or testing the 
     qualifications of individuals who perform covered tasks. Such 
     method may include written examination, oral examination, on-
     the-job training, simulations, observation during on-the-job 
     performance, and other forms of assessment. The method may 
     not be limited to observation of on-the-job performance, 
     except with respect to tasks where the Secretary has 
     determined specifically that such observation is the best 
     method of examining or testing qualifications. Further, the 
     Secretary must ensure that the results of any such on-the-job 
     performance observations are documented in writing. The 
     Secretary may waive or modify requirements if not 
     inconsistent with pipeline safety. The Secretary is required 
     to verify each operator's qualification program, including 
     modifications to previously verified programs. In the event 
     the Secretary fails to establish standards and criteria as 
     set forth in this section, pipeline facility operators are 
     required to develop and implement qualification programs 
     based on the requirements of this section. The Secretary 
     is required to report to Congress within 5 years on the 
     status and results of personnel qualification regulations. 
     A pilot program is established for the certification of 
     individuals who operate computer-based systems for 
     controlling the operations of pipelines. The pilot program 
     seeks the participation of 3 pipeline facilities.
     Section 14. Risk analysis and integrity management programs 
         for gas pipelines.
       This section requires operators of pipeline facilities 
     subject to section 60109 of Title 49 to adopt and implement a 
     written integrity management program to reduce risks to each 
     facility. Within 12 months of the enactment of the bill, this 
     section requires the Secretary of Transportation to prescribe 
     standards to direct each operator's conduct of a risk 
     analysis and adoption and implementation of an integrity 
     management program, which must occur within 24 months from 
     the enactment of the section. Minimum requirements are set 
     forth in this section for integrity management programs and 
     for the rule regulating the same, which include a baseline 
     integrity assessment of each of an operator's facilities 
     which must be completed within 10 years after the enactment 
     of the section (at least 50 percent of such facilities shall 
     be assessed no later than 5 years after the date of enactment 
     of this section), and a reassessment of each facility at a 
     minimum of once every 7 years, with prioritization being 
     based on all relevant risk factors, including any previously 
     discovered defects or anomalies and any history of leaks, 
     repairs, or failures.
       The Secretary of Transportation is required to issue a rule 
     on integrity management programs, and each operator of a 
     pipeline facility subject to section 60109 of Title 49 is 
     required to adopt and implement an integrity management 
     program, even if the Secretary does not issue a rule. This 
     section does not apply to natural gas distribution lines 
     because section 60109 of Title 49 does not, nor was it 
     intended to, apply to natural gas distribution lines.
       Section 14 authorizes the Secretary of Transportation to 
     grant waivers and modifications pursuant to section 60118(c) 
     of Title 49 for any requirement for reassessment of a 
     facility for reasons that may include the need to maintain 
     local product supply or the lack of internal inspection 
     devices. The waivers or modifications shall not be 
     inconsistent with pipelines safety.
       This section also requires that the Comptroller General 
     conduct a study to evaluate the 7-year reassessment interval 
     required by this section. The study is to be completed and 
     transmitted to Congress no later than 4 years from the date 
     of enactment.
       In this section, each operator of a gas pipeline facility 
     is required to conduct a risk analysis for facilities located 
     in high consequence areas and to adopt and implement an 
     integrity management program for each such facility to reduce 
     associated risks. This section requires each operator to 
     prioritize facilities for integrity assessment based on all 
     risk factors, including any history of leaks, repairs, or 
     failures, and directs the operator to give priority to 
     facilities with the highest risks.
       The Department of Transportation's Research and Special 
     Programs Administration (RSPA) issued a final rule defining 
     ``high consequence areas'' on August 6, 2002. The managers 
     strongly support RSPA's regulation defining high consequence 
     areas, although recognize that the definition could be 
     subject to alteration by future regulatory action by RSPA.
       Pipeline safety regulations have long required gas 
     operators to survey and patrol along their pipeline rights-
     of-way to classify areas of population. The new definition of 
     high consequence areas builds on the existing classification 
     of areas where the potential consequences of a gas pipeline 
     accident may be significant or may do considerable harm to 
     people and their property, and includes current class 3 and 4 
     locations, facilities with persons who are mobility impaired, 
     confined, or hard to evacuate, and places where people gather 
     for recreational and other purposes.
       In the July 2002 Technical Pipeline Safety Standards 
     Committee meeting to consider the proposed definition, RSPA 
     made clear its intent to include in its definition known 
     areas where people gather, such as the Pecos River pipeline 
     crossing near Carlsbad, New Mexico, which was commonly used 
     by campers and fishermen and was the location of a pipeline 
     rupture in August 2000 that resulted in 12 fatalities. The 
     managers support is expressed for this new definition of high 
     consequence areas and expect RSPA to further

[[Page H8994]]

     clarify the application of the definition in the substantive 
     rule to be issued on integrity management programs.
     Section 15. National Pipeline Mapping System.
       Section 15 requires operators of pipeline facilities, 
     except distribution lines and gathering lines, to provide to 
     the Secretary of Transportation geospatial data appropriate 
     for use in the National Mapping System, the name and address 
     of the person with primary operational control, and a means 
     for a member for the public to contact the operator for 
     additional information about the facilities. There is a 
     requirement to update the information as necessary.
     Section 16. Coordination of environmental reviews.
       Section 16 requires the President to establish an 
     interagency committee for the purpose of developing and 
     ensuring the implementation of a coordinated environmental 
     review and permitting process in order for pipeline operators 
     to complete all activities necessary to carry out pipeline 
     repairs within any time periods specified by rule by the 
     Secretary of Transportation.
       The chairman of the Council on Environmental Quality shall 
     chair the Interagency Committee, which shall consist of 
     representatives of Federal agencies with responsibilities 
     relating to pipeline repair projects. The Interagency 
     Committee shall evaluate Federal permitting requirements and 
     shall examine the access, excavation, and restoration 
     practices of the pipeline industry for the purpose of 
     developing a compendium of best practices used by the 
     industry to access, excavate, and restore the site of a 
     pipeline repair. Based upon the evaluation conducted, the 
     members of the Interagency Committee shall enter into, by 
     unanimous consent, a memorandum of understanding to provide 
     for the coordinated and expedited pipeline repair permit 
     review process so that pipeline operators may commence and 
     complete pipeline repairs within any time periods imposed on 
     the repair projects by rules promulgated by the Secretary of 
     Transportation. Each agency represented on the Interagency 
     Committee is required to revise its regulations to implement 
     the provisions of the memorandum of understanding.
       This section also provides for the implementation of 
     alternative mitigation measures to be used by operators of 
     pipeline facilities until all applicable permits have been 
     granted. To the extent necessary, the Secretary of 
     Transportation is required to revise the regulations of the 
     Department to accommodate such implementation. However, such 
     revisions shall not allow an operator of a pipeline facility 
     to implement alternate mitigation measures unless to do so 
     would be consistent with the protection of human health, 
     public safety, and the environment; the operator has applied 
     for and is diligently and in good faith pursuing all required 
     Federal, state, and local permits necessary to carry out the 
     repair project; and is compatible with pipeline safety.
       The Secretary of Transportation is required to designate an 
     ombudsman to assist in expediting pipeline repairs and 
     resolving disagreements between Federal, state, and local 
     permitting agencies and the operator of a pipeline facility. 
     The actions of the ombudsman must be consistent with the 
     protection of human health, public safety, and the 
     environment.
       The Secretary of Transportation is required to encourage 
     states and local governments to consolidate their respective 
     permitting processes for pipeline repair projects that are 
     subject to any time periods for repairs specified by rule by 
     the Secretary of Transportation.
     Section 17. Nationwide toll-free number system.
       Section 17 requires the Secretary of Transportation to work 
     in conjunction with the Federal Communications Commission 
     (FCC), facility operators, excavators, and one-call 
     notification system operators for the establishment of a 
     nationwide toll-free 3-digit telephone number system to be 
     used by state one-call notification systems.
     Section 18. Implementation of Inspector General 
         recommendations.
       Section 18 requires the Secretary of Transportation to 
     respond to each of the recommendations of the Department of 
     Transportation Inspector General contained in RT-2000-069 
     every 90 days and to submit the responses to the appropriate 
     committees of Congress.
     Section 19. NTSB safety recommendations.
       Section 19 requires RSPA and OPS to respond to 
     recommendations received from the NTSB within 90 days from 
     receipt of such recommendations. Such responses shall state 
     the intentions of the OPS with respect to the recommendations 
     and shall state the timetable for completing the procedures 
     and reasons for refusals to do so. The responses shall be 
     made available to the public. The OPS is required to submit 
     an annual report describing each recommendation received and 
     the OPS response to each recommendation for the previous 
     year.
     Section 20. Miscellaneous amendments.
       Section 20 amends section 60102(a) of Title 49 by adding 
     language expressing that the purpose of the chapter is to 
     provide adequate protection against risks to life and 
     property posed by pipeline transportation pipeline facilities 
     by improving the regulatory and enforcement authority of the 
     Secretary of Transportation.
       This section also modifies the qualifications of the 
     individuals selected to serve on the Technical Safety 
     Standards Committees pursuant to section 60115 of Title 49 so 
     that none of the individuals selected for committee 
     membership from the general public ``may have a significant 
     financial interest in the pipeline, petroleum, or gas 
     industry.'' The intent of this provision is to prevent 
     industry employees and individuals with a sizable stake in 
     the pipeline industry from serving as representatives from 
     the general public, not prevent service from individuals who 
     have pipeline, petroleum, or gas industry stock interests in 
     their retirement plans.
     Section 21. Technical amendments.
       Section 21 makes technical amendments to correct previous 
     drafting errors in the existing legislation.
     Section 22. Authorization of appropriations.
       Section 22 authorizes appropriations for the Department of 
     Transportation and state grants for safety programs for the 
     fiscal years 2003 through 2006.
     Section 23. Inspections by direct assessment.
       Section 23 requires the Secretary of Transportation to 
     issue regulations prescribing standards for inspections of a 
     pipeline facility by direct assessment.
     Section 24. State pipeline safety advisory committees.
       Section 24 requires the Secretary of Transportation to 
     respond within 90 days after receiving recommendations from 
     advisory committees appointed by the Governor of any state.
     Section 25. Pipeline bridge risk study.
       Section 25 requires the Secretary of Transportation to 
     conduct a study to determine whether cable-suspension 
     pipeline bridges pose structural or other risks. The 
     Secretary may only use funds specifically appropriated to 
     carry this section.
     Section 26. Study and Report on Natural Gas Pipeline and 
         Storage Facilities in New England.
       Section 26 requires the Federal Energy Regulatory 
     Commission, in consultation with the Department of Energy, to 
     conduct a study on the natural gas pipeline transmission 
     network in New England and natural gas storage facilities 
     associated with that network and report back to the relevant 
     House and Senate Committees within a year of the date of 
     enactment.

                              {time}  0250


    Taken From the Speaker's Table and Concurred in Senate Amendment

  H.R. 5469, to amend title 17, United States Code, with respect to the 
statutory license for webcasting, and for other purposes.
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Webcaster Settlement 
     Act of 2002''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Some small webcasters who did not participate in the 
     copyright arbitration royalty panel proceeding leading to the 
     July 8, 2002 order of the Librarian of Congress establishing 
     rates and terms for certain digital performances and 
     ephemeral reproductions of sound recordings, as provided in 
     part 261 of the Code of Federal Regulations (published in the 
     Federal Register on July 8, 2002) (referred to in this 
     section as ``small webcasters''), have expressed reservations 
     about the fee structure set forth in such order, and have 
     expressed their desire for a fee based on a percentage of 
     revenue.
       (2) Congress has strongly encouraged representatives of 
     copyright owners of sound recordings and representatives of 
     the small webcasters to engage in negotiations to arrive at 
     an agreement that would include a fee based on a percentage 
     of revenue.
       (3) The representatives have arrived at an agreement that 
     they can accept in the extraordinary and unique circumstances 
     here presented, specifically as to the small webcasters, 
     their belief in their inability to pay the fees due pursuant 
     to the July 8 order, and as to the copyright owners of sound 
     recordings and performers, the strong encouragement of 
     Congress to reach an accommodation with the small webcasters 
     on an expedited basis.
       (4) The representatives have indicated that they do not 
     believe the agreement provides for or in any way approximates 
     fair or reasonable royalty rates and terms, or rates and 
     terms that would have been negotiated in the marketplace 
     between a willing buyer and a willing seller.
       (5) Congress has made no determination as to whether the 
     agreement provides for or in any way approximates fair or 
     reasonable fees and terms, or rates and terms that would have 
     been negotiated in the marketplace between a willing buyer 
     and a willing seller.
       (6) Congress likewise has made no determination as to 
     whether the July 8 order is reasonable or arbitrary, and 
     nothing in this Act shall be taken into account by the United 
     States Court of Appeals for the District of Columbia Circuit 
     in its review of such order.
       (7) It is, nevertheless, in the public interest for the 
     parties to be able to enter into such an agreement without 
     fear of liability for deviating from the fees and terms of 
     the July 8 order, if it is clear that the agreement will not 
     be admissible as evidence or otherwise taken into account in 
     any government proceeding involving the setting or adjustment 
     of the royalties payable to copyright owners of sound 
     recordings for the public performance or reproduction in 
     ephemeral phonorecords or copies of such works, the 
     determination of terms or conditions related thereto,

[[Page H8995]]

     or the establishment of notice or recordkeeping requirements.

     SEC. 3. SUSPENSION OF CERTAIN PAYMENTS.

       (a) Noncommercial Webcasters.--
       (1) In general.--The payments to be made by noncommercial 
     webcasters for the digital performance of sound recordings 
     under section 114 of title 17, United States Code, and the 
     making of ephemeral phonorecords under section 112 of title 
     17, United States Code, during the period beginning on 
     October 28, 1998, and ending on May 31, 2003, which have not 
     already been paid, shall not be due until June 20, 2003.
       (2) Definition.--In this subsection, the term 
     ``noncommercial webcaster'' has the meaning given that term 
     in section 114(f)(5)(E)(i) of title 17, United States Code, 
     as added by section 4 of this Act.
       (b) Small Commercial Webcasters.--
       (1) In general.--The receiving agent may, in a writing 
     signed by an authorized representative thereof, delay the 
     obligation of any 1 or more small commercial webcasters to 
     make payments pursuant to sections 112 and 114 of title 17, 
     United States Code, for a period determined by such entity to 
     allow negotiations as permitted in section 4 of this Act, 
     except that any such period shall end no later than December 
     15, 2002. The duration and terms of any such delay shall be 
     as set forth in such writing.
       (2) Definitions.--In this subsection--
       (A) the term ``webcaster'' has the meaning given that term 
     in section 114(f)(5)(E)(iii) of title 17, United States Code, 
     as added by section 4 of this Act; and
       (B) the term ``receiving agent'' shall have the meaning 
     given that term in section 261.2 of title 37, Code of Federal 
     Regulations, as published in the Federal Register on July 8, 
     2002.

     SEC. 4. AUTHORIZATION FOR SETTLEMENTS.

       Section 114(f) of title 17, United States Code, is amended 
     by adding after paragraph (4) the following:
       ``(5)(A) Notwithstanding section 112(e) and the other 
     provisions of this subsection, the receiving agent may enter 
     into agreements for the reproduction and performance of sound 
     recordings under section 112(e) and this section by any 1 or 
     more small commercial webcasters or noncommercial webcasters 
     during the period beginning on October 28, 1998, and ending 
     on December 31, 2004, that, once published in the Federal 
     Register pursuant to subparagraph (B), shall be binding on 
     all copyright owners of sound recordings and other persons 
     entitled to payment under this section, in lieu of any 
     determination by a copyright arbitration royalty panel or 
     decision by the Librarian of Congress. Any such agreement for 
     small commercial webcasters shall include provisions for 
     payment of royalties on the basis of a percentage of revenue 
     or expenses, or both, and include a minimum fee. Any such 
     agreement may include other terms and conditions, including 
     requirements by which copyright owners may receive notice of 
     the use of their sound recordings and under which records of 
     such use shall be kept and made available by small commercial 
     webcasters or noncommercial webcasters. The receiving agent 
     shall be under no obligation to negotiate any such agreement. 
     The receiving agent shall have no obligation to any copyright 
     owner of sound recordings or any other person entitled to 
     payment under this section in negotiating any such agreement, 
     and no liability to any copyright owner of sound recordings 
     or any other person entitled to payment under this section 
     for having entered into such agreement.
       ``(B) The Copyright Office shall cause to be published in 
     the Federal Register any agreement entered into pursuant to 
     subparagraph (A). Such publication shall include a statement 
     containing the substance of subparagraph (C). Such agreements 
     shall not be included in the Code of Federal Regulations. 
     Thereafter, the terms of such agreement shall be available, 
     as an option, to any small commercial webcaster or 
     noncommercial webcaster meeting the eligibility conditions of 
     such agreement.
       ``(C) Neither subparagraph (A) nor any provisions of any 
     agreement entered into pursuant to subparagraph (A), 
     including any rate structure, fees, terms, conditions, or 
     notice and recordkeeping requirements set forth therein, 
     shall be admissible as evidence or otherwise taken into 
     account in any administrative, judicial, or other government 
     proceeding involving the setting or adjustment of the 
     royalties payable for the public performance or reproduction 
     in ephemeral phonorecords or copies of sound recordings, the 
     determination of terms or conditions related thereto, or the 
     establishment of notice or recordkeeping requirements by the 
     Librarian of Congress under paragraph (4) or section 
     112(e)(4). It is the intent of Congress that any royalty 
     rates, rate structure, definitions, terms, conditions, or 
     notice and recordkeeping requirements, included in such 
     agreements shall be considered as a compromise motivated by 
     the unique business, economic and political circumstances of 
     small webcasters, copyright owners, and performers rather 
     than as matters that would have been negotiated in the 
     marketplace between a willing buyer and a willing seller, or 
     otherwise meet the objectives set forth in section 801(b).
       ``(D) Nothing in the Small Webcaster Settlement Act of 2002 
     or any agreement entered into pursuant to subparagraph (A) 
     shall be taken into account by the United States Court of 
     Appeals for the District of Columbia Circuit in its review of 
     the determination by the Librarian of Congress of July 8, 
     2002, of rates and terms for the digital performance of sound 
     recordings and ephemeral recordings, pursuant to sections 112 
     and 114.
       ``(E) As used in this paragraph--
       ``(i) the term `noncommercial webcaster' means a webcaster 
     that--
       ``(I) is exempt from taxation under section 501 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 501);
       ``(II) has applied in good faith to the Internal Revenue 
     Service for exemption from taxation under section 501 of the 
     Internal Revenue Code and has a commercially reasonable 
     expectation that such exemption shall be granted; or
       ``(III) is operated by a State or possession or any 
     governmental entity or subordinate thereof, or by the United 
     States or District of Columbia, for exclusively public 
     purposes;
       ``(ii) the term `receiving agent' shall have the meaning 
     given that term in section 261.2 of title 37, Code of Federal 
     Regulations, as published in the Federal Register on July 8, 
     2002; and
       ``(iii) the term `webcaster' means a person or entity that 
     has obtained a compulsory license under section 112 or 114 
     and the implementing regulations therefor to make eligible 
     nonsubscription transmissions and ephemeral recordings.
       ``(F) The authority to make settlements pursuant to 
     subparagraph (A) shall expire December 15, 2002, except with 
     respect to noncommercial webcasters for whom the authority 
     shall expire May 31, 2003.''.

     SEC. 5. DEDUCTIBILITY OF COSTS AND EXPENSES OF AGENTS AND 
                   DIRECT PAYMENT TO ARTISTS OF ROYALTIES FOR 
                   DIGITAL PERFORMANCES OF SOUND RECORDINGS.

       (a) Findings.--Congress finds that--
       (1) in the case of royalty payments from the licensing of 
     digital transmissions of sound recordings under subsection 
     (f) of section 114 of title 17, United States Code, the 
     parties have voluntarily negotiated arrangements under which 
     payments shall be made directly to featured recording artists 
     and the administrators of the accounts provided in subsection 
     (g)(2) of that section;
       (2) such voluntarily negotiated payment arrangements have 
     been codified in regulations issued by the Librarian of 
     Congress, currently found in section 261.4 of title 37, Code 
     of Federal Regulations, as published in the Federal Register 
     on July 8, 2002;
       (3) other regulations issued by the Librarian of Congress 
     were inconsistent with the voluntarily negotiated 
     arrangements by such parties concerning the deductibility of 
     certain costs incurred for licensing and arbitration, and 
     Congress is therefore restoring those terms as originally 
     negotiated among the parties; and
       (4) in light of the special circumstances described in this 
     subsection, the uncertainty created by the regulations issued 
     by the Librarian of Congress, and the fact that all of the 
     interested parties have reached agreement, the voluntarily 
     negotiated arrangements agreed to among the parties are being 
     codified.
       (b) Deductibility.--Section 114(g) of title 17, United 
     States Code, is amended by adding after paragraph (2) the 
     following:
       ``(3) A nonprofit agent designated to distribute receipts 
     from the licensing of transmissions in accordance with 
     subsection (f) may deduct from any of its receipts, prior to 
     the distribution of such receipts to any person or entity 
     entitled thereto other than copyright owners and performers 
     who have elected to receive royalties from another designated 
     agent and have notified such nonprofit agent in writing of 
     such election, the reasonable costs of such agent incurred 
     after November 1, 1995, in--
       ``(A) the administration of the collection, distribution, 
     and calculation of the royalties;
       ``(B) the settlement of disputes relating to the collection 
     and calculation of the royalties; and
       ``(C) the licensing and enforcement of rights with respect 
     to the making of ephemeral recordings and performances 
     subject to licensing under section 112 and this section, 
     including those incurred in participating in negotiations or 
     arbitration proceedings under section 112 and this section, 
     except that all costs incurred relating to the section 112 
     ephemeral recordings right may only be deducted from the 
     royalties received pursuant to section 112.
       ``(4) Notwithstanding paragraph (3), any designated agent 
     designated to distribute receipts from the licensing of 
     transmissions in accordance with subsection (f) may deduct 
     from any of its receipts, prior to the distribution of such 
     receipts, the reasonable costs identified in paragraph (3) of 
     such agent incurred after November 1, 1995, with respect to 
     such copyright owners and performers who have entered with 
     such agent a contractual relationship that specifies that 
     such costs may be deducted from such royalty receipts.''.
       (c) Direct Payment to Artists.--Section 114(g)(2) of title 
     17, United States Code, is amended to read as follows:
       ``(2) An agent designated to distribute receipts from the 
     licensing of transmissions in accordance with subsection (f) 
     shall distribute such receipts as follows:
       ``(A) 50 percent of the receipts shall be paid to the 
     copyright owner of the exclusive right under section 106(6) 
     of this title to publicly perform a sound recording by means 
     of a digital audio transmission.
       ``(B) 2\1/2\ percent of the receipts shall be deposited in 
     an escrow account managed by an independent administrator 
     jointly appointed by copyright owners of sound recordings and 
     the American Federation of Musicians (or any successor 
     entity) to be distributed to nonfeatured musicians (whether 
     or not members of the American Federation of Musicians) who 
     have performed on sound recordings.
       ``(C) 2\1/2\ percent of the receipts shall be deposited in 
     an escrow account managed by an independent administrator 
     jointly appointed by copyright owners of sound recordings and 
     the American Federation of Television and Radio Artists (or 
     any successor entity) to be distributed to nonfeatured 
     vocalists (whether or not members of the American Federation 
     of Television and Radio Artists) who have performed on sound 
     recordings.
       ``(D) 45 percent of the receipts shall be paid, on a per 
     sound recording basis, to the recording

[[Page H8996]]

     artist or artists featured on such sound recording (or the 
     persons conveying rights in the artists' performance in the 
     sound recordings).''.

     SEC. 6. REPORT TO CONGRESS.

       By not later than June 1, 2004, the Comptroller General of 
     the United States, in consultation with the Register of 
     Copyrights, shall conduct and submit to the Committee on the 
     Judiciary of the House of Representatives and the Committee 
     on the Judiciary of the Senate a study concerning the 
     economic arrangements among small commercial webcasters 
     covered by agreements entered into pursuant to section 
     114(f)(5)(A) of title 17, United States Code, as added by 
     section 4 of this Act, and third parties, and the effect of 
     those arrangements on royalty fees payable on a percentage of 
     revenue or expense basis.
  Mr. BERMAN. Mr. Speaker, I rise to support House adoption of the 
Senate substitute amendment to H.R. 5649. This legislation provides 
important assistance to noncommercial webcasters, small commercial 
webcasters, recording artists, and owners of sound recording 
copyrights.
  Early last month, the House passed H.R. 5469 on voice vote under 
suspension of the rules. As passed by the House, H.R. 5469 provided 
small commercial webcasters with a discount on the webcasting royalties 
they owed. The House-passed bill actually specified the rates and terms 
of the discount these webcasters would receive.
  Unfortunately, H.R. 5469 was stalled in the Senate. Certain 
broadcasters expressed concern that the terms of the discount specified 
in H.R. 5469 would have a precedential effect in future webcasting 
royalty-setting proceedings. Noncommercial webcasters expressed the 
concern that H.R. 5469 did not give them a discount on webcasting 
royalties, as it did for small commercial webcasters. The Senate 
decided to amend H.R. 5469 to address these concerns, and the bill 
before us today reflects those accommodations.
  The Senate substitute delays the webcasting royalty obligations of 
noncommercial webcasters, which came due late last month, until June 
20, 2003. The bill also allows the collecting agent to delay the 
royalty obligation owed by any 1 or more small commercial webcaster 
until December 15, 2002.
  Instead of specifying the rates and terms of the discount for 
noncommercial and small commercial webcasters, the Senate substitute 
delegates the ability to establish an industry-wide discount to the 
collecting agent for copyright owners and recording artists. The 
understating and expectation of both the House and the Senate is that 
the collecting agent will offer noncommercial and small commercial 
webcasters a royalty discount based on the terms and conditions set in 
the House-passed version of H.R. 5469. In other words, Congress expects 
that the collecting agent will offer noncommercial and small commercial 
webcasters the same deal represented by H.R. 5469.
  There is no doubt that this approach is unusual. Unlike the typical 
statutory license rate-setting process, this approach does not involve 
any governmental entity in the rate-setting process, except for the 
Copyright Office's ministerial task of publishing those agreements in 
the Federal Register. This should not be considered a precedent or 
model for future legislation. It is a response to the unique 
circumstances surrounding the reaction to the rates set by the 
Librarian of Congress, the ensuing negotiations between copyright 
owners and webcasters, and the opposition H.R. 5469 generated in the 
Senate.
  Again, I ask my colleagues to support the Senate substitute to H.R. 
5469.
  Mr. SENSENBRENNER. Mr. Speaker, on October 7, 2002, the House passed 
H.R. 5469, the ``Small Webcaster Amendments Act of 2002,'' under 
suspension of the Rules. Earlier this evening, the Senate passed a 
substitute version of the bill, which I urge the House to adopt by 
unanimous consent.
  By way of background, H.R. 5469 as originally drafted suspended the 
implementation of the Librarian of Congress's decision regarding 
royalty rates that webcasters must pay to copyright owners for the 
performance of copyrighted works for six months beginning on October 
20. At the time, the purpose of this delay was to ensure that all 
parties would receive the judicial process to which they are entitled 
under the law before the rate took effect.
  H.R. 5469 placed a burr under the saddle of both the copyright 
holders and the small webcasters to conclude negotiations on these 
matters that began last summer. The parties negotiated around the clock 
and arrived at a deal that set new rates and payment terms, obviating 
the need for further legal or administrative intervention.
  Following House passage of H.R. 5469, Senator Helms expressed 
concerns regarding the potential effect of codifying the actual 
agreement in the statute on future rate proceedings. As a result, and 
after further negotiations in the past two days, the parties have 
developed the Helms substitute before us which makes the following 
changes:
  It contains a ``findings'' section which explains the need for the 
legislation.
  It suspends the obligation of non-commercial webcasters, such as 
college radio stations, to pay copyright holders royalties owed until 
June 20, 2003. This will give both sides extra time to negotiate a new 
deal.
  Under H.R. 5469 as originally passed by the House, SoundExchange, the 
non-profit entity which collects and distributes royalties owed 
copyright holders, is permitted to deduct its operating and legal 
expenses from collected fees. The substitute retains this feature and 
also permits any other for-profit entity designated as an agent by the 
affected copyright holders to deduct its expenses in the same manner.
  SoundExchange is authorized to negotiate an agreement on behalf of 
all copyright owners and performers with small webcasters. Affected 
small commercial webcasters will not pay royalties through December 15, 
2002, which is intended to facilitate the implementation of a 
settlement identical to the terms set forth in H.R. 5469 as passed by 
the House.
  The Comptroller General and the Register of Copyrights will develop a 
joint report for the House and Senate Committees on the Judiciary 
regarding the effect of ``economic arrangements among small webcasters 
and third parties'' on royalty fees owed copyright holders.
  Finally, Mr. Speaker, I would like to commend both the small 
webcasters and the copyright owners for their diligent efforts to reach 
an agreement. I understand that this is a complex and controversial 
issue and both sides met the challenge by continuing to negotiate in 
good faith.
  H.R. 5469, as amended, is a good bill. It will ultimately accomplish 
the same goal as H.R. 5469 as passed by the House, only in a different 
way. I urge my colleagues to support the bill.


    Taken From the Speaker's Table and Concurred in Senate Amendment

  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.
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

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

     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 inappropriate 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 solicitation 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

[[Page H8997]]

       (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 registry.--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 
     subsection (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.
       ``(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--

[[Page H8998]]

       ``(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.''.
  Mr. SHIMKUS. Mr. Speaker, it is with great pride that I rise today 
upon the passage of H.R. 3833, The ``Dot Kids Implementation and 
Efficiency Act of 2002.'' This bill creates a subdomain on the ``.us'' 
country-code that will store only child-friendly sites.
  I would like to thank Senators Ensign and Dorgan as the Senate 
sponsors of this bill, and I give special recognition to the coauthors, 
Congressman Ed Markey and the Telecommunications Subcommittee Chairman 
Fred Upton, for their tireless effort and leadership on this project.
  In addition to the members, I would also like to thank the talented 
and hard-working staff involved: Kelly Zerzan, Will Nordwind, Collin 
Crowell, Brendan Kelsay, Tim Kurth, and my staffer, Courtney Andersen. 
I would also like to than Bryan Cunningham and Emmett O'Keefe for 
navigating this bill through the Senate. Hundreds of hours, a great 
deal of research, thought, patience, compromise and perseverance went 
into this legislation. It has truly been a labor of love for us all and 
I thank you.
  I must not forget the organizations that supported this vision. H.R. 
3833 was endorsed by the National Center for Missing and Exploited 
Children, the National Law Center for Children and Families, a Safer 
America for Everyone (SAFE) as well as by the Family Research Council. 
I thank these groups for taking a stand to help keep children safe on 
the Internet.
  Mr. Speaker, this is a good day for children in America. Soon, kids 
will have their own playground on the Internet. When surfing on the 
``kid.us'' domain, parents can rest assured that their children are 
gaining the educational and entertainment benefits of the Internet, 
without exposure to predators or inappropriate content.
  We have all heard the horror stories about the harm that can come to 
unsupervised children online. I will sleep better at night knowing that 
we, as a body of representatives, took this positive step to help 
safeguard our children against the dangers that lurk on the World Wide 
Web.
  I thank my colleagues for once again voting to pass H.R. 3833, the 
``Dot Kids Act.'' This is a good piece of legislation, which 
demonstrates to our children that we care.
  Mr. MARKEY. Mr. Speaker, I rise in support of this bill. I am an 
original cosponsor of the bill along with Mr. Shimkus, Chairman Upton, 
as well as many other members. I want to commend Chairman Tauzin, 
Ranking Member Dingell and everyone involved for the excellent process 
on this bill that has led to a consensus, bipartisan proposal. This 
bill was approved unanimously by the House Energy and Commerce 
Committee, and was approved by the House back in May by a vote of 406 
to 2.
  The Senate has slightly altered the House-passed version and I 
support approving this amended version and sending it to President Bush 
for his signature. This is a consensus bill and a model of how 
legislative proposals can achieve success in a closely divided 
Congress. There is a reason that this is the sole telecommunications 
bill of any significance for ordinary people that we will enact in the 
107th Congress. And that's because it was a bill that we worked 
together on--Republicans and Democrats--from the start. When we 
encountered issues, we resolved them by working together, and we sought 
out bipartisan support on the other side of the Capitol as well. 
Senator Dorgan and Senator Ensign also deserve tremendous credit for 
this achievement.
  As many parents today know, the Internet often appears to be a 
veritable jungle of web sites. When a child logs on to search for 
games, stories, or educational material, search engines often turn up 
pages for the kids laden with pornography, violence or other content 
that is simply not appropriate for young children. To give children 
their own playground on the Internet, and to facilitate the easier 
browsing and filtering of content that many parents desire, we are 
poised now to enact H.R. 3833, the ``Dot Kids Implementation and 
Efficiency Act.''
  This bill directs the Department of Commerce, through the National 
Telecommunications and Information Administration (NTIA) to accelerate 
the creation of a ``dot kids'' domain by making it a secondary domain 
under our nation's country code top level domain, which is ``dot us.'' 
The Department of Commerce awarded a free contract last October to 
authorize private sector management and commercialization of ``dot 
U.S.''
  I opposed the awarding of a free contract to a company to essentially 
manage and profit from a public asset. We only have one country code 
and the Department of Commerce should have ensured that the broader 
public interest was incorporated in any contract to manage the dot U.S. 
domain, or, as I indicated in a letter to the Department of Commerce in 
the summer of 2001, the contract should have been auctioned to the 
highest qualified bidder. We should be long past the time in this 
country of giving away public assets to private companies to profit 
from for free. Nevertheless, the DoC awarded the dot U.S. contract 
to NeuStar in October of 2001, and Congress must now subsequently 
ensure that future contract awards or extensions incorporate public 
interest conditions in such contract awards and ``dot.kids'' is clearly 
in the public interest.

  What is essentially being proposed in the creation of a place on the 
Internet for websites that end in ``dot kids-dot U.S.'' (e.g., 
www.example.kids.us) The proposed ``dot kids'' domain will be a 
cyberspace sanctuary for content that is suitable for kids and will be 
an area devoted of content that is harmful to such minors.
  I want to address at this point, very briefly, some of the free 
speech concerns that any endeavor that any endeavor of this type will 
inevitably raise. First let me emphasize how this approach departs from 
previous Congressional activity in this policy area. First, the 
proposed legislation will not subject all of the Internet 
communications to ``harmful to minors'' standard. If you're in 
Tennessee, Taiwan, or Timbuktu you can publish or speak any content you 
want on the Internet. This proposal doesn't affect you're ability to do 
so on a ``dot com,'' ``dot net,'' ``dot org,'' or anywhere else. This 
proposal now only addresses a subset of Internet commerce--the ``dot 
us'' space.
  Moreover, it doesn't even curtail speech throughout the entirety of 
the ``dot U.S.'' country code domain. If you're in Providence, Rhode 
Island or Provo, Utah under this bill you are free to exercise your 
constitutional rights and this legislation contains no proposal that 
would subject anyone utilizing the ``dot us'' space to a standard 
suitable only for kids. Speech more appropriate for adults or teenagers 
will not be affected by this bill and can appear elsewhere in the ``dot 
U.S.'' domain.
  The bill solely stipulates that if you want to operate in the ``dot 
kids-dot U.S.'' area--in other words, a mere subset of the ``dot us'' 
country code domain--you have entered a kid-friendly zone--a green 
light district if you will--where the content is suitable for children 
12 and under. The ``dot kids'' proposal is not aimed at censoring 
Internet content per se. Rather, it is crafted to help organize content 
more appropriate for kids in a safe and secure cyber-zone, where the 
risk of young children clicking outside of that zone to unsuitable 
content, or being preyed upon or exploited online by adults posing as 
kids, is vastly diminished. Organizing kid-friendly content in this 
manner will enhance the effectiveness of filtering software and may 
better enable parents to set their children's browsers so that their 
kids only surf within the ``dot kids'' domain.
  And I also want to emphasize that use of the ``dot kids'' domain is 
not compulsory. Signing up for a ``dot kids'' domain--or parents 
sending their kids to websites in that location--remains completely 
voluntary and the free choice of both content speakers and parents. 
Finally, I want to note that this bill is not meant in any way to 
diminish or thwart the many laudable private sector efforts to create 
new and alternative ways for kids to have a safe and educational online 
experience. Our efforts here today are meant to supplement, not 
supplant, initiatives underway elsewhere by ensuring that our ``dot 
us'' country code reflects our public interest goals as a society in 
away that hopefully can harness the best of advance technology for kids 
across the country.
  Thank you, Mr. Speaker, and I again want to thank Mr. Shimkus, 
Chairman Tauzin, Mr. Dingell, and Chairman Upton for their work on the 
bill.


               Taken From the Speaker's Table and Amended

  S. 2237, to amend Title 38, United States Code, to modify and improve 
authorities relating to compensation and pension benefits, education 
benefits, housing benefits, and other benefits for veterans, to improve 
the administration of benefits for veterans, and for other purposes.
       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 ``Veterans 
     Benefits Act of 2002''.

[[Page H8999]]

       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.

            TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS

Sec. 101. Retention of CHAMPVA for surviving spouses remarrying after 
              age 55.
Sec. 102. Clarification of entitlement to special monthly compensation 
              for women veterans who have service-connected loss of 
              breast tissue.
Sec. 103. Specification of hearing loss required for compensation for 
              hearing loss in paired organs.
Sec. 104. Assessment of acoustic trauma associated with military 
              service from World War II to present.

                       TITLE II--MEMORIAL AFFAIRS

Sec. 201. Prohibition on certain additional benefits for persons 
              committing capital crimes.
Sec. 202. Procedures for disqualification of persons committing capital 
              crimes for interment or memorialization in national 
              cemeteries.
Sec. 203. Application of Department of Veterans Affairs benefit for 
              Government markers for marked graves of veterans at 
              private cemeteries to veterans dying on or after 
              September 11, 2001.
Sec. 204. Authorization of placement of a memorial in Arlington 
              National Cemetery honoring World War II veterans who 
              fought in the Battle of the Bulge.

                        TITLE III--OTHER MATTERS

Sec. 301. Increase in aggregate annual amount available for State 
              approving agencies for administrative expenses for fiscal 
              years 2003 through 2007.
Sec. 302. Authority for Veterans' Mortgage Life Insurance to be carried 
              beyond age 70.
Sec. 303. Authority to guarantee hybrid adjustable rate mortgages.
Sec. 304. Increase in amount payable as Medal of Honor special pension.
Sec. 305. Extension of protections under the Soldiers' and Sailors' 
              Civil Relief Act of 1940 to National Guard members called 
              to active duty under title 32, United States Code.
Sec. 306. Extension of income verification authority.
Sec. 307. Fee for loan assumption.
Sec. 308. Technical and clarifying amendments.
Sec. 309. Codification of cost-of-living adjustment provided in Public 
              Law 107-247.

                       TITLE IV--JUDICIAL MATTERS

Sec. 401. Standard for reversal by Court of Appeals for Veterans Claims 
              of erroneous finding of fact by Board of Veterans' 
              Appeals.
Sec. 402. Review by Court of Appeals for the Federal Circuit of 
              decisions of law of Court of Appeals for Veterans Claims.
Sec. 403. Authority of Court of Appeals for Veterans Claims to award 
              fees under Equal Access to Justice Act for non-attorney 
              practitioners.

     SEC. 2. REFERENCES TO TITLE 38, 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 repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of title 38, United States Code.

            TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS

     SEC. 101. RETENTION OF CHAMPVA FOR SURVIVING SPOUSES 
                   REMARRYING AFTER AGE 55.

       (a) Exception to Termination of Benefits Upon Remarriage.--
     Paragraph (2) of section 103(d) is amended--
       (1) by inserting ``(A) after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) The remarriage after age 55 of the surviving spouse 
     of a veteran shall not bar the furnishing of benefits under 
     section 1781 of this title to such person as the surviving 
     spouse of the veteran.''.
       (b) Application for Benefits.--In the case of an individual 
     who but for having remarried would be eligible for medical 
     care under section 1781 of title 38, United States Code, and 
     whose remarriage was before the date of the enactment of this 
     Act and after the individual had attained age 55, the 
     individual shall be eligible for such medical care by reason 
     of the amendments made by subsection (a) only if an 
     application for such medical care is received by the 
     Secretary of Veterans Affairs during the one-year period 
     ending on the effective date specified in subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 60 days after the date 
     of the enactment of this Act.

     SEC. 102. CLARIFICATION OF ENTITLEMENT TO SPECIAL MONTHLY 
                   COMPENSATION FOR WOMEN VETERANS WHO HAVE 
                   SERVICE-CONNECTED LOSS OF BREAST TISSUE.

       Section 1114(k) is amended by striking ``one or both 
     breasts (including loss by mastectomy)'' and inserting ``25 
     percent or more of tissue from a single breast or both 
     breasts in combination (including loss by mastectomy or 
     partial mastectomy) or has received radiation treatment of 
     breast tissue''.

     SEC. 103. SPECIFICATION OF HEARING LOSS REQUIRED FOR 
                   COMPENSATION FOR HEARING LOSS IN PAIRED ORGANS.

       Section 1160(a)(3) is amended--
       (1) by striking ``total deafness'' the first place it 
     appears and inserting ``deafness compensable to a degree of 
     10 percent or more''; and
       (2) by striking ``total deafness'' the second place it 
     appears and inserting ``deafness''.

     SEC. 104. ASSESSMENT OF ACOUSTIC TRAUMA ASSOCIATED WITH 
                   MILITARY SERVICE FROM WORLD WAR II TO PRESENT.

       (a) Assessment by National Academy of Sciences.--The 
     Secretary of Veterans Affairs shall seek to enter into an 
     agreement with the National Academy of Sciences for the 
     Academy to perform the activities specified in this section. 
     The Secretary shall seek to enter into the agreement not 
     later than 60 days after the date of the enactment of this 
     Act.
       (b) Duties Under Agreement.--Under the agreement under 
     subsection (a), the National Academy of Sciences shall do the 
     following:
       (1) Review and assess available data on hearing loss that 
     could reasonably be expected to have been incurred by members 
     of the Armed Forces during the period from the beginning of 
     World War II to the date of the enactment of this Act.
       (2) Identify the different sources of acoustic trauma that 
     members of the Armed Forces could reasonably be expected to 
     have been exposed to during the period from the beginning of 
     World War II to the date of the enactment of this Act.
       (3) Determine how much exposure to each source of acoustic 
     trauma identified under paragraph (2) is required to cause or 
     contribute to hearing loss, hearing threshold shift, or 
     tinnitus, as the case may be, and at what noise level.
       (4) Determine whether or not such hearing loss, hearing 
     threshold shift, or tinnitus, as the case may be, is--
       (A) immediate or delayed onset;
       (B) cumulative;
       (C) progressive; or
       (D) any combination of subparagraph (A), (B), and (C).
       (5) Identify age, occupational history, and other factors 
     which contribute to an individual's noise-induced hearing 
     loss.
       (6) Identify--
       (A) the period of time at which audiometric measures used 
     by the Armed Forces became adequate to evaluate individual 
     hearing threshold shift; and
       (B) the period of time at which hearing conservation 
     measures to prevent individual hearing threshold shift were 
     available to members of the Armed Forces, shown separately 
     for each of the Army, Navy, Air Force, Marine Corps, and 
     Coast Guard, and, for each such service, shown separately for 
     members exposed to different sources of acoustic trauma 
     identified under paragraph (2).
       (c) Report.--Not later than 180 days after the date of the 
     entry into the agreement referred to in subsection (a), the 
     National Academy of Sciences shall submit to the Secretary a 
     report on the activities of the National Academy of Sciences 
     under the agreement, including the results of the activities 
     required by subsection (b).
       (d) Report on Administration of Benefits for Hearing Loss 
     and Tinnitus.--(1) Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committees on Veterans' Affairs of the 
     Senate and the House of Representatives a report on the 
     claims submitted to the Secretary for disability compensation 
     or health care for hearing loss or tinnitus.
       (2) The report under paragraph (1) shall include the 
     following:
       (A) The number of decisions issued by the Secretary in each 
     of fiscal years 2000, 2001, and 2002 on claims for disability 
     compensation for hearing loss, tinnitus, or both.
       (B) Of the decisions referred to in subparagraph (A)--
       (i) the number in which compensation was awarded, and the 
     number in which compensation was denied, set forth by fiscal 
     year; and
       (ii) the total amount of disability compensation paid on 
     such claims during each such fiscal year.
       (C) The total cost to the Department of Veterans Affairs of 
     adjudicating the claims referred to in subparagraph (A), set 
     forth in terms of full-time employee equivalents (FTEEs).
       (D) The total number of veterans who sought treatment in 
     Department of Veterans Affairs health care facilities during 
     fiscal years specified in subparagraph (A) for hearing-
     related disorders, set forth by the number of veterans per 
     year.
       (E) The health care furnished to veterans referred to in 
     subparagraph (D) for hearing-related disorders, including the 
     number of veterans furnished hearing aids and the cost of 
     furnishing such hearing aids.

                       TITLE II--MEMORIAL AFFAIRS

     SEC. 201. PROHIBITION ON CERTAIN ADDITIONAL BENEFITS FOR 
                   PERSONS COMMITTING CAPITAL CRIMES.

       (a) Presidential Memorial Certificate.--Section 112 is 
     amended by adding at the end the following new subsection:
       ``(c) A certificate may not be furnished under the program 
     under subsection (a) on

[[Page H9000]]

     behalf of a deceased person described in section 2411(b) of 
     this title.''.
       (b) Flag to Drape Casket.--Section 2301 is amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) A flag may not be furnished under this section in the 
     case of a person described in section 2411(b) of this 
     title.''.
       (c) Headstone or Marker for Grave.--Section 2306 is amended 
     by adding at the end the following new subsection:
       ``(g)(1) A headstone or marker may not be furnished under 
     subsection (a) for the unmarked grave of a person described 
     in section 2411(b) of this title.
       ``(2) A memorial headstone or marker may not be furnished 
     under subsection (b) for the purpose of commemorating a 
     person described in section 2411(b) of this title.
       ``(3) A marker may not be furnished under subsection (d) 
     for the grave of a person described in section 2411(b) of 
     this title.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to deaths occurring on or after the 
     date of the enactment of this Act.

     SEC. 202. PROCEDURES FOR DISQUALIFICATION OF PERSONS 
                   COMMITTING CAPITAL CRIMES FOR INTERMENT OR 
                   MEMORIALIZATION IN NATIONAL CEMETERIES.

       Section 2411(a)(2) is amended--
       (1) by striking ``The prohibition'' and inserting ``In the 
     case of a person described in subsection (b)(1) or (b)(2), 
     the prohibition''; and
       (2) by striking ``or finding under subsection (b)'' and 
     inserting ``referred to in subsection (b)(1) or (b)(2), as 
     the case may be,''.

     SEC. 203. APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS 
                   BENEFIT FOR GOVERNMENT MARKERS FOR MARKED 
                   GRAVES OF VETERANS AT PRIVATE CEMETERIES TO 
                   VETERANS DYING ON OR AFTER SEPTEMBER 11, 2001.

       (a) In General.--Subsection (d) of section 502 of the 
     Veterans Education and Benefits Expansion Act of 2001 (Public 
     Law 107-103; 115 Stat. 995; 38 U.S.C. 2306 note) is amended 
     by striking ``the date of the enactment of this Act'' and 
     inserting ``September 11, 2001''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the enactment of such 
     section 502.

     SEC. 204. AUTHORIZATION OF PLACEMENT OF A MEMORIAL IN 
                   ARLINGTON NATIONAL CEMETERY HONORING WORLD WAR 
                   II VETERANS WHO FOUGHT IN THE BATTLE OF THE 
                   BULGE.

       The Secretary of the Army is authorized to place in 
     Arlington National Cemetery a memorial marker honoring 
     veterans who fought in the battle in the European theater of 
     operations during World War II known as the Battle of the 
     Bulge.

                        TITLE III--OTHER MATTERS

     SEC. 301. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR 
                   STATE APPROVING AGENCIES FOR ADMINISTRATIVE 
                   EXPENSES FOR FISCAL YEARS 2003 THROUGH 2007.

       The first sentence of section 3674(a)(4) is amended by 
     inserting before the period at the end the following: ``, for 
     fiscal year 2003, $14,000,000, for fiscal year 2004, 
     $18,000,000, for fiscal year 2005, $18,000,000, for fiscal 
     year 2006, $19,000,000, and for fiscal year 2007, 
     $19,000,000''.

     SEC. 302. AUTHORITY FOR VETERANS' MORTGAGE LIFE INSURANCE TO 
                   BE CARRIED BEYOND AGE 70.

       Section 2106 is amended--
       (1) in subsection (a), by inserting ``age 69 or younger'' 
     after ``any eligible veteran''; and
       (2) in subsection (i), by striking paragraph (2) and 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.

     SEC. 303. AUTHORITY TO GUARANTEE HYBRID ADJUSTABLE RATE 
                   MORTGAGES.

       (a) Two-Year Demonstration Project To Guarantee Certain 
     Adjustable Rate Mortgages.--Chapter 37 is amended by 
     inserting after section 3707 the following new section:

     ``Sec. 3707A. Hybrid adjustable rate mortgages

       ``(a) The Secretary shall carry out a demonstration project 
     under this section during fiscal years 2004 and 2005 for the 
     purpose of guaranteeing loans in a manner similar to the 
     manner in which the Secretary of Housing and Urban 
     Development insures adjustable rate mortgages under section 
     251 of the National Housing Act in accordance with the 
     provisions of this section with respect to hybrid adjustable 
     rate mortgages described in subsection (b).
       ``(b) Adjustable rate mortgages that are guaranteed under 
     this section shall be adjustable rate mortgages (commonly 
     referred to as `hybrid adjustable rate mortgages') having 
     interest rate adjustment provisions that--
       ``(1) specify an initial rate of interest that is fixed for 
     a period of not less than the first three years of the 
     mortgage term;
       ``(2) provide for an initial adjustment in the rate of 
     interest by the mortgagee at the end of the period described 
     in paragraph (1); and
       ``(3) comply in such initial adjustment, and any subsequent 
     adjustment, with subsection (c).
       ``(c) Interest rate adjustment provisions of a mortgage 
     guaranteed under this section shall--
       ``(1) correspond to a specified national interest rate 
     index approved by the Secretary, information on which is 
     readily accessible to mortgagors from generally available 
     published sources;
       ``(2) be made by adjusting the monthly payment on an annual 
     basis;
       ``(3) be limited, with respect to any single annual 
     interest rate adjustment, to a maximum increase or decrease 
     of 1 percentage point; and
       ``(4) be limited, over the term of the mortgage, to a 
     maximum increase of 5 percentage points above the initial 
     contract interest rate.
       ``(d) The Secretary shall promulgate underwriting standards 
     for loans guaranteed under this section, taking into 
     account--
       ``(1) the status of the interest rate index referred to in 
     subsection (c)(1) and available at the time an underwriting 
     decision is made, regardless of the actual initial rate 
     offered by the lender;
       ``(2) the maximum and likely amounts of increases in 
     mortgage payments that the loans would require;
       ``(3) the underwriting standards applicable to adjustable 
     rate mortgages insured under title II of the National Housing 
     Act; and
       ``(4) such other factors as the Secretary finds 
     appropriate.
       ``(e) The Secretary shall require that the mortgagee make 
     available to the mortgagor, at the time of loan application, 
     a written explanation of the features of the adjustable rate 
     mortgage, including a hypothetical payment schedule that 
     displays the maximum potential increases in monthly payments 
     to the mortgagor over the first five years of the mortgage 
     term.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 37 is amended by inserting after the 
     item relating to section 3707 the following new item:

``3707A. Hybrid adjustable rate mortgages.''.

     SEC. 304. INCREASE IN AMOUNT PAYABLE AS MEDAL OF HONOR 
                   SPECIAL PENSION.

       (a) Increase in Amount.--Subsection (a) of section 1562 is 
     amended by striking ``$600'' and inserting ``$1,000, as 
     adjusted from time to time under subsection (e)''.
       (b) Annual Adjustment.--That section is further amended by 
     adding at the end the following new subsection:
       ``(e) Effective as of December 1 each year, the Secretary 
     shall increase the amount of monthly special pension payable 
     under subsection (a) as of November 30 of such year by the 
     same percentage as the percentage by which benefit amounts 
     payable under title II of the Social Security Act (42 U.S.C. 
     401 et seq.) are increased effective December 1 of such year 
     as a result of a determination under section 215(i) of that 
     Act (42 U.S.C. 415(i)).''.
       (c) Payment of Lump Sum for Period Between Act of Valor and 
     Commencement of Special Pension.--That section is further 
     amended by adding after subsection (e), as added by 
     subsection (b) of this section, the following new subsection:
       ``(f)(1) The Secretary shall pay, in a lump sum, to each 
     person who is in receipt of special pension payable under 
     this section an amount equal to the total amount of special 
     pension that the person would have received during the period 
     beginning on the first day of the first month beginning after 
     the date of the act for which the person was awarded the 
     Medal of Honor and ending on the last day of the month 
     preceding the month in which the person's special pension in 
     fact commenced.
       ``(2) For each month of a period referred to in paragraph 
     (1), the amount of special pension payable to a person shall 
     be determined using the rate of special pension that was in 
     effect for such month, and shall be payable only if the 
     person would have been entitled to payment of special pension 
     for such month under laws for eligibility for special pension 
     (with the exception of the eligibility law requiring a person 
     to have been awarded a Medal of Honor) in effect at the 
     beginning of such month.''.
       (d) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by subsections (a) and (b) shall 
     take effect on September 1, 2003. No payment may be made 
     pursuant to subsection (f) of section 1562 of title 38, 
     United States Code, as added by subsection (c) of this 
     section, before October 1, 2003.
       (2) The Secretary of Veterans Affairs shall not make any 
     adjustment under subsection (e) of section 1562 of title 38, 
     United States Code, as added by subsection (b) of this 
     section, in 2003.

     SEC. 305. EXTENSION OF PROTECTIONS UNDER THE SOLDIERS' AND 
                   SAILORS' CIVIL RELIEF ACT OF 1940 TO NATIONAL 
                   GUARD MEMBERS CALLED TO ACTIVE DUTY UNDER TITLE 
                   32, UNITED STATES CODE.

       Section 101(1) of the Soldiers' and Sailors' Civil Relief 
     Act of 1940 (50 U.S.C. App. 511(1)) is amended--
       (1) in the first sentence--
       (A) by striking ``and all'' and inserting ``all''; and
       (B) by inserting before the period the following: ``, and 
     all members of the National Guard on service described in the 
     following sentence''; and
       (2) in the second sentence, by inserting before the period 
     the following: ``, and, in the case of a member of the 
     National Guard, shall include service under a call to active 
     service authorized by the President or the Secretary of 
     Defense for a period of more than 30 consecutive days under 
     section 502(f) of title 32, United States Code, for purposes 
     of responding to a national emergency declared by the 
     President and supported by Federal funds''.

[[Page H9001]]

     SEC. 306. EXTENSION OF INCOME VERIFICATION AUTHORITY.

       Section 6103(l)(7)(D) of the Internal Revenue Code of 1986 
     is amended by striking ``September 30, 2003'' in the second 
     sentence after clause (ix) and inserting ``September 30, 
     2008''.

     SEC. 307. FEE FOR LOAN ASSUMPTION.

       (a) In General.--For the period described in subsection 
     (b), the Secretary of Veterans Affairs shall apply section 
     3729(b)(2)(I) of title 38, United States Code, by 
     substituting ``1.00'' for ``0.50'' each place it appears.
       (b) Period Described.--The period referred to in subsection 
     (a) is the period that begins on the date that is 7 days 
     after the date of the enactment of this Act and ends on 
     September 30, 2003.

     SEC. 308. TECHNICAL AND CLARIFYING AMENDMENTS.

       (a) Eligibility of Certain Additional Vietnam Era Veterans 
     for Education Benefits.--Section 3011(a)(1)(C)(ii) is amended 
     by striking ``on or''.
       (b) Accelerated Payment of Assistance for Education Leading 
     to Employment in High Technology Industry.--(1) Subsection 
     (b)(1) of section 3014A is amended by striking ``employment 
     in a high technology industry'' and inserting ``employment in 
     a high technology occupation in a high technology industry''.
       (2)(A) The heading for section 3014A is amended to read as 
     follows:

     ``Sec. 3014A. Accelerated payment of basic educational 
       assistance for education leading to employment in high 
       technology occupation in high technology industry''.

       (B) The table of sections at the beginning of chapter 30 is 
     amended by striking the item relating to section 3014A and 
     inserting the following new item:

``3014A. Accelerated payment of basic educational assistance for 
              education leading to employment in high technology 
              occupation in high technology industry.''.

       (c) Source of Funds for Increased Usage of Montgomery GI 
     Bill Entitlement Under Entitlement Transfer Authority.--(1) 
     Section 3035(b) is amended--
       (A) in paragraph (1), by striking ``paragraphs (2) and (3) 
     of this subsection,'' and inserting ``paragraphs (2), (3), 
     and (4),''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Payments attributable to the increased usage of 
     benefits as a result of transfers of entitlement to basic 
     educational assistance under section 3020 of this title shall 
     be made from the Department of Defense Education Benefits 
     Fund established under section 2006 of title 10 or from 
     appropriations made to the Department of Transportation, as 
     appropriate.''.
       (2) The amendments made by this subsection shall take 
     effect as if included in the enactment of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107), to which such amendments relate.
       (d) Licensing or Certification Tests.--Section 
     3689(c)(1)(B) is amended by striking ``the test'' and 
     inserting ``such test, or a test to certify or license in a 
     similar or related occupation,''.
       (e) Period of Eligibility for Survivors' and Dependents' 
     Assistance Education Benefits.--(1) Section 3512(a) is 
     amended--
       (A) in paragraph (3)--
       (i) by striking ``paragraph (4)'' in the matter preceding 
     subparagraph (A) and inserting ``paragraph (4) or (5)''; and
       (ii) by striking ``subsection (d)'' in subparagraph (C)(i) 
     and inserting ``subsection (d), or any date between the two 
     dates described in subsection (d)'';
       (B) by redesignating paragraphs (4), (5), (6), and (7) as 
     paragraphs (5), (6), (7), and (8), respectively;
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) if the person otherwise eligible under paragraph (3) 
     fails to elect a beginning date of entitlement in accordance 
     with that paragraph, the beginning date of the person's 
     entitlement shall be the date of the Secretary's decision 
     that the parent has a service-connected total disability 
     permanent in nature, or that the parent's death was service-
     connected, whichever is applicable;''; and
       (D) in paragraph (6), as so redesignated, by striking 
     ``paragraph (4)'' and inserting ``paragraph (5)''.
       (2) The amendments made by this subsection shall take 
     effect November 1, 2000.
       (f) Loan Fees.--(1) Section 3703(e)(2)(A) is amended by 
     striking ``3729(b)'' and inserting ``3729(b)(2)(I)''.
       (2) The amendment made by paragraph (1) shall take effect 
     as if included in the enactment of section 402 of the 
     Veterans Benefits and Health Care Improvement Act of 2000 
     (Public Law 106-419; 114 Stat. 1861).
       (g) Additional Miscellaneous Technical Amendments to Title 
     38, United States Code.--(1)(A) The tables of chapters 
     preceding part I and at the beginning of part IV are each 
     amended by striking ``5101'' in the item relating to chapter 
     51 and inserting ``5100''.
       (B) The table of parts preceding part I is amended by 
     striking ``5101'' in the item relating to part IV and 
     inserting ``5100''.
       (2) Section 107(d)(2) is amended by striking ``the date of 
     the enactment of this subsection'' and inserting ``November 
     1, 2000,''.
       (3) Section 1701(10)(A) is amended by striking ``the date 
     of the enactment of the Veterans' Millennium Health Care and 
     Benefits Act'' and inserting ``November 30, 1999,''.
       (4) Section 1705(c)(1) is amended by striking ``Effective 
     on October 1, 1998, the Secretary'' and inserting ``The 
     Secretary''.
       (5) Section 1707(a) is amended by inserting ``(42 U.S.C. 
     14401 et seq.)'' before the period at the end.
       (6) Section 1710(e)(1)(D) is amended by striking ``the date 
     of the enactment of this subparagraph'' and inserting 
     ``November 11, 1998''.
       (7) Section 1729B(b) is amended by striking ``the date of 
     the enactment of this section'' and inserting ``November 30, 
     1999,''.
       (8) Section 1781(d) is amended--
       (A) in paragraph (1)(B)(i), by striking ``as of the date'' 
     and all that follows through ``of 2001'' and inserting ``as 
     of June 5, 2001''; and
       (B) in paragraph (4), by striking ``paragraph'' and 
     inserting ``subsection''.
       (9) Section 3018C(e)(2)(B) is amended by striking the comma 
     after ``April''.
       (10) Section 3031(a)(3) is amended by striking ``the date 
     of the enactment of this paragraph'' and inserting ``December 
     27, 2001''.
       (11) Section 3485(a)(4) is amended in subparagraphs (A), 
     (C), and (F), by striking ``the five-year period beginning on 
     the date of the enactment of the Veterans Education and 
     Benefits Expansion Act of 2001'' and inserting ``the period 
     preceding December 27, 2006''.
       (12) Section 3734(b)(2) is amended--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraphs (C), (D), (E), and (F) 
     as subparagraphs (B) (C), (D), and (E), respectively.
       (13) Section 7315(a) is amended by inserting ``Veterans 
     Health'' in the first sentence after ``in the''.
       (h) Public Law 107-103.--Effective as of December 27, 2001, 
     and as if included therein as originally enacted, section 
     103(c) of the Veterans Education and Benefits Expansion Act 
     of 2001 (Public Law 107-103; 115 Stat. 979) is amended by 
     inserting closing quotation marks at the end of the text 
     inserted by the amendment made by paragraph (2).
       (i) Public Law 102-86.--Section 403(e) of the Veterans' 
     Benefits Programs Improvement Act of 1991 (Public Law 102-86; 
     105 Stat. 424) is amended by striking ``section 321'' and all 
     that follows through ``and 484)'' and inserting ``subchapter 
     II of chapter 5 of title 40, United States Code, sections 541 
     through 555 and 1302 of title 40, United States Code''.

     SEC. 309. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED 
                   IN PUBLIC LAW 107-247.

       (a) Veterans' Disability Compensation.--Section 1114 is 
     amended--
       (1) by striking ``$103'' in subsection (a) and inserting 
     ``$104'';
       (2) by striking ``$199'' in subsection (b) and inserting 
     ``$201'';
       (3) by striking ``$306'' in subsection (c) and inserting 
     ``$310'';
       (4) by striking ``$439'' in subsection (d) and inserting 
     ``$445'';
       (5) by striking ``$625'' in subsection (e) and inserting 
     ``$633'';
       (6) by striking ``$790'' in subsection (f) and inserting 
     ``$801'';
       (7) by striking ``$995'' in subsection (g) and inserting 
     ``$1,008'';
       (8) by striking ``$1,155'' in subsection (h) and inserting 
     ``$1,171'';
       (9) by striking ``$1,299'' in subsection (i) and inserting 
     ``$1,317'';
       (10) by striking ``$2,163'' in subsection (j) and inserting 
     ``$2,193'';
       (11) in subsection (k)--
       (A) by striking ``$80'' both places it appears and 
     inserting ``$81''; and
       (B) by striking ``$2,691'' and ``$3,775'' and inserting 
     ``$2,728'' and ``$3,827'', respectively;
       (12) by striking ``$2,691'' in subsection (l) and inserting 
     ``$2,728'';
       (13) by striking ``$2,969'' in subsection (m) and inserting 
     ``$3,010'';
       (14) by striking ``$3,378'' in subsection (n) and inserting 
     ``$3,425'';
       (15) by striking ``$3,775'' each place it appears in 
     subsections (o) and (p) and inserting ``$3,827'';
       (16) by striking ``$1,621'' and ``$2,413'' in subsection 
     (r) and inserting ``$1,643'' and ``$2,446'', respectively; 
     and
       (17) by striking ``$2,422'' in subsection (s) and inserting 
     ``$2,455''.
       (b) Additional Compensation for Dependents.--Section 
     1115(1) is amended--
       (1) by striking ``$124'' in subparagraph (A) and inserting 
     ``$125'';
       (2) by striking ``$213'' in subparagraph (B) and inserting 
     ``$215'';
       (3) by striking ``$84'' in subparagraph (C) and inserting 
     ``$85'';
       (4) by striking ``$100'' in subparagraph (D) and inserting 
     ``$101'';
       (5) by striking ``$234'' in subparagraph (E) and inserting 
     ``$237''; and
       (6) by striking ``$196'' in subparagraph (F) and inserting 
     ``$198''.
       (c) Clothing Allowance for Certain Disabled Veterans.--
     Section 1162 is amended by striking ``$580'' and inserting 
     ``$588''.
       (d) Dependency and Indemnity Compensation for Surviving 
     Spouses.--(1) Section 1311(a) is amended--
       (A) by striking ``$935'' in paragraph (1) and inserting 
     ``$948''; and
       (B) by striking ``$202'' in paragraph (2) and inserting 
     ``$204''.
       (2) The table in section 1311(a)(3) is amended to read as 
     follows:

       

 
 
 
                                   Monthly                       Monthly
``Pay grade                           rate  Pay grade               rate
    E-1......................         $948    W-4..........       $1,134
    E-2......................          948    O-1..........        1,001
    E-3......................          948    O-2..........        1,035

[[Page H9002]]

 
    E-4......................          948    O-3..........        1,107
    E-5......................          948    O-4..........        1,171
    E-6......................          948    O-5..........        1,289
    E-7......................          980    O-6..........        1,453
    E-8......................        1,035    O-7..........        1,570
    E-9......................    \1\ 1,080    O-8..........        1,722
    W-1......................        1,001    O-9..........        1,843
    W-2......................        1,042    O-10.........    \2\ 2,021
    W-3......................        1,072
 
`` \1\If the veteran served as sergeant major of the Army, senior
  enlisted advisor of the Navy, chief master sergeant of the Air Force,
  sergeant major of the Marine Corps, or master chief petty officer of
  the Coast Guard, at the applicable time designated by section 1302 of
  this title, the surviving spouse's rate shall be $1,165.
`` \2\If the veteran served as Chairman or Vice-Chairman of the Joint
  Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard, at the applicable time
  designated by section 1302 of this title, the surviving spouse's rate
  shall be $2,168.''.

       (3) Section 1311(b) is amended by striking ``$234'' and 
     inserting ``$237''.
       (4) Section 1311(c) is amended by striking ``$234'' and 
     inserting ``$237''.
       (5) Section 1311(d) is amended by striking ``$112'' and 
     inserting ``$113''.
       (e) Dependency and Indemnity Compensation for Children.--
     (1) Section 1313(a) is amended--
       (A) by striking ``$397'' in paragraph (1) and inserting 
     ``$402'';
       (B) by striking ``$571'' in paragraph (2) and inserting 
     ``$578'';
       (C) by striking ``$742'' in paragraph (3) and inserting 
     ``$752''; and
       (D) by striking ``$742'' and ``$143'' in paragraph (4) and 
     inserting ``$752'' and ``$145'', respectively.
       (2) Section 1314 is amended--
       (A) by striking ``$234'' in subsection (a) and inserting 
     ``$237'';
       (B) by striking ``$397'' in subsection (b) and inserting 
     ``$402''; and
       (C) by striking ``$199'' in subsection (c) and inserting 
     ``$201''.

                       TITLE IV--JUDICIAL MATTERS

     SEC. 401. STANDARD FOR REVERSAL BY COURT OF APPEALS FOR 
                   VETERANS CLAIMS OF ERRONEOUS FINDING OF FACT BY 
                   BOARD OF VETERANS' APPEALS.

       (a) Standard for Reversal.--Paragraph (4) of subsection (a) 
     of section 7261 is amended--
       (1) by inserting ``adverse to the claimant'' after 
     ``material fact''; and
       (2) by inserting ``or reverse'' after ``and set aside''.
       (b) Requirements for Review.--Subsection (b) of that 
     section is amended to read as follows:
       ``(b) In making the determinations under subsection (a), 
     the Court shall review the record of proceedings before the 
     Secretary and the Board of Veterans' Appeals pursuant to 
     section 7252(b) of this title and shall--
       ``(1) take due account of the Secretary's application of 
     section 5107(b) of this title; and
       ``(2) take due account of the rule of prejudicial error.''.
       (c) Applicability.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the date of the enactment of this Act.
       (2) The amendments made by this section shall apply with 
     respect to any case pending for decision before the United 
     States Court of Appeals for Veterans Claims other than a case 
     in which a decision has been entered before the date of the 
     enactment of this Act.

     SEC. 402. REVIEW BY COURT OF APPEALS FOR THE FEDERAL CIRCUIT 
                   OF DECISIONS OF LAW OF COURT OF APPEALS FOR 
                   VETERANS CLAIMS.

       (a) Review.--Section 7292(a) is amended by inserting ``a 
     decision of the Court on a rule of law or of'' in the first 
     sentence after ``the validity of''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to any appeal--
       (1) filed with the United States Court of Appeals for the 
     Federal Circuit on or after the date of the enactment of this 
     Act; or
       (2) pending with the United States Court of Appeals for the 
     Federal Circuit as of the date of the enactment of this Act 
     in which a decision has not been rendered as of that date.

     SEC. 403. AUTHORITY OF COURT OF APPEALS FOR VETERANS CLAIMS 
                   TO AWARD FEES UNDER EQUAL ACCESS TO JUSTICE ACT 
                   FOR NON-ATTORNEY PRACTITIONERS.

       The authority of the United States Court of Appeals for 
     Veterans Claims to award reasonable fees and expenses of 
     attorneys under section 2412(d) of title 28, United States 
     Code, shall include authority to award fees and expenses, in 
     an amount determined appropriate by the United States Court 
     of Appeals for Veterans Claims, of individuals admitted to 
     practice before the Court as non-attorney practitioners under 
     subsection (b) or (c) of Rule 46 of the Rules of Practice and 
     Procedure of the United States Court of Appeals for Veterans 
     Claims.

                   Amendment to the title of S. 2237

       Amend the title so as to read: ``An Act to amend title 38, 
     United States Code, to improve authorities of the Department 
     of Veterans Affairs relating to veterans' compensation, 
     dependency and indemnity compensation, and pension benefits, 
     education benefits, housing benefits, memorial affairs 
     benefits, life insurance benefits, and certain other benefits 
     for veterans, to improve the administration of benefits for 
     veterans, to make improvements in procedures relating to 
     judicial review of veterans' claims for benefits, and for 
     other purposes.''.
  Mr. SIMPSON. Mr. Speaker, I rise in strong support for S. 2237, the 
Veterans Benefits Act of 2002. This sweeping measure encompasses 
enhancements to veterans' compensation, pension, insurance and home 
loan benefits, among other matters.
  The Veterans Benefits Act of 2002 compromises provisions included in 
S. 2237 and five House bills previously considered in this body. I will 
highlight a few of the provisions:
  I am especially pleased that we are able to extend VA health care 
eligibility to surviving spouses who remarry after age 55. Under 
current law, a surviving spouse is not entitled to this benefit while 
married. As I explained to Ms. Blackwell following her testimony before 
our subcommittee, I wish we had the means at this time to be more 
generous to these deserving spouses. However, as the chairman has 
indicated, this is a first step in restoring entitlement to the host of 
benefits these women and men must give up when they remarry later in 
life. I thank Mike Bilirakis for his leadership on this issue.
  The bill also includes modest increases in funding for State 
approving agencies given the additional statutory duties SAAs now 
perform in maintaining the integrity of servicemember and veterans' 
education and training programs. These new funding levels are $14 
million for fiscal year 2003, $18 million for fiscal year 2004, $18 
million for fiscal year 2005, $19 million for fiscal year 2006, and $19 
million for fiscal year 2007.
  I especially look forward to an aggressive initiative by SAAs in 
seeking out and approving for veterans' training, employer-based on-job 
training, and apprenticeship opportunities across the country. Our 
veterans use of VA educational assistance programs for OJT and 
apprenticeship is very limited. Lastly, I agree with Chairman Smith; 
VA's OJT apprenticeship program largely is still based on the original 
World War II model. Congress has some serious work to do in updating 
this program next year.
  S. 2237, as amended, provides coverage under the Soldiers' and 
Sailors' Civil Relief Act to members of the National Guard who are 
called to active service for more than 30 consecutive days to respond 
to a national emergency. I recognize Lane Evans for his work on this 
proposal.
  The bill also increases the Medal of Honor special pension from $600 
to $1,000 per month. I am pleased we are able to recognize, albeit in a 
small way, our nation's real heroes.
  S. 2237, as amended, authorizes the Secretary of the Army to place a 
new memorial at Arlington National cemetery in honor of veterans who 
fought in the Battle of the Bulge of World War II, one of the greatest 
land battles of that war.
  In addition, S. 2237 provides enhancements to existing authorities 
which provide compensation to women veterans and veterans with hearing 
loss.
  Mr. Speaker, we have worked with the Senate on this bill for many 
months, and I'm proud of the outcome. Many veterans and their survivors 
will indeed benefit.
  I must give due recognition to the Chairman and Ranking Member, Chris 
Smith and Lane Evans, respectively, for their unwavering leadership. 
During the 107th Congress, this committee has brought to the floor 23 
bills, all of which passed the House overwhelmingly. I must also thank 
my good friend, the Ranking Member of the Benefits Subcommittee, 
Silvestre Reyes.
  Mr. Speaker, I urge my colleagues to support S. 2237, this final 
veterans package of the 107th Congress.
  Mr. EVANS. Mr. Speaker, I rise in strong support of the bill, S. 
2237, as agreed to by both the House and the Senate. This bill improves 
compensation benefits for hearing disabled veterans and for women 
veterans, extends protection under the Soldiers' and Sailors' Civil 
Relief Act to members of the National Guard and provides improvements 
to the judicial review of claims for veterans benefits.
  The agreement before the House is the result of the efforts of many 
people on both sides of the aisle. I thank our Chairman, Chris Smith, 
for his determined and effective leadership. I also thank other Members 
of our House Committee; the leadership of the Veterans Affairs 
Committee in the other body and, of course, the staff of our House 
Committee who have worked long and hard on this legislation. In 
particular, I thank Mary Ellen McCarthy and Geoffrey Collver for their 
untiring efforts.
  S. 2237 incorporates provisions from a number of bills passed by the 
House. The Veterans Benefits Act of 2002 will allow surviving spouses 
who remarry after age 55 to retain CHAMPVA health insurance benefits. 
Mr. Speaker, I was honored by the Gold Star Wives of America for my 
advocacy on behalf of surviving spouses of veterans. While I am pleased 
that these spouses, like civil service surviving spouses will be able 
to retain health insurance benefits, I am extremely disappointed that 
the provision allowing Dependency and Indemnity Compensation (DIC) 
recipients to remarry after age 65 and retain

[[Page H9003]]

those benefits was not included in the final bill. I hope that in the 
next Congress, these surviving spouses will be able to receive full 
comparability with federal civil service survivors who are allowed to 
remarry at age 55 without loss of benefits.
  The bill also includes provisions similar to those contained in H.R. 
4017, which I introduced, in order to provide members of the National 
Guard who serve for at least 30 consecutive days with protections under 
the Soldiers' and Sailors' Civil Relief Act (SSCRA). The SSCRA protects 
those who are serving our country from civil actions and reduces the 
rate of interest on certain obligations entered into prior to being 
activated for military service. When we ask the men and women of the 
National Guard to respond to a national emergency, such as the services 
required following the tragedies of September 11th, we have a 
responsibility to assure that their service to our country will not 
place them in unnecessary financial jeopardy.
  Mr. Speaker, the bill expands the jurisdiction of the Court of 
Appeals for the Federal Circuit over cases appealed from the Court of 
Appeals for Veterans Claims to cover all questions of law and not 
merely interpretations of statutes and regulations. It clarifies the 
authority of the Court of Appeals for Veterans Claims to reverse 
decisions of the Board of Veterans Appeals in appropriate cases and 
requires the decisions be based upon the record as a whole, taking into 
account the pro-veteran rule known as ``benefit of the doubt.'' Under 
the bill, non-attorneys who are permitted to practice before the Court 
of Veterans Appeals will be able to qualify for fees under the Equal 
Access to Justice Act even if they are not supervised by an attorney. 
Under current law, these practitioners are eligible for these fees only 
if their work is supervised by an attorney. I hope these changes will 
provide fairer and more efficient decisions on veterans' claims.
  In addition to these benefit provisions, S. 2237 also:
  Authorizes a study by the National Academy of Science concerning the 
relationship of military hearing loss and acoustic trauma to military 
service.
  Authorizes the placement of a memorial to the World War II Battle of 
the Bulge at Arlington National Cemetery.
  Allows severely disabled service-connected veterans who qualify for 
Veterans Mortgage Life Insurance to retain their coverage regardless of 
age.
  Authorizes a two-year program of hybrid adjustable rate mortgages 
under the VA home loan program.
  Provides for an increase to $1000 per month in special pension 
benefits payable to persons who have been awarded the Medal of Honor.
  Sets forth the amounts of benefits to be paid as service-connected 
compensation and DIC benefits effective December 1, 2002.
  S. 2237 will now be considered by the Senate. If S. 2237 is passed by 
the Senate as approved by the House, it will be sent to the White House 
to be signed into law by President Bush.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Mr. SMITH of New Jersey. Mr. Speaker, the bill which is before the 
House represents a compromise measure that has been worked out with the 
Senate on a number of benefit-related measures considered this year.
  In May of this year, the House considered and passed H.R. 4085, the 
Veterans and Survivors Benefits Expansion Act. There were three major 
provisions in that bill: (1) the annual cost-of-living adjustment for 
disabled veterans and the survivors eligible for dependency and 
indemnity compensation; (2) a revision to the eligibility for survivor 
benefits so that surviving spouses of veterans who died of service-
related causes could retain their eligibility for veterans' benefit 
even if they remarried after age 65; and (3) a reduction in the loan 
fees payable by reservists who use the VA home loan program.
  The Senate stripped all but the COLA from H.R. 4085 at the end of 
September and returned it to the House. We agreed to the clean COLA 
bill, which was signed by President Bush and is Public Law 107-247.
  The Senate also sent us a benefits bill, S. 2237, which has become 
the vehicle for the compromises worked out by the two committees for 
the provisions previously contained in H.R. 4085 and a number of 
provisions contained in the Senate bill passed last month.
  Because of an evolving budget situation, the committees found 
themselves forced to offset virtually all of the PAYGO costs associated 
with the bill. The Senate bill had basically none of the provisions 
originally contained in H.R. 4085. Instead, it proposed to expand 
eligibility for service-connected hearing loss and allow veterans to 
obtain a ``hybrid'' adjustable rate mortgage using their VA home loan 
eligibility.
  The compromise includes modified versions of these important Senate 
provisions. It does not include the DIC change proposed by the House, 
although it provides eligibility for CHAMPVA for surviving spouses who 
remarried after age 55. They must apply for this benefit within one 
year of the date the President signs this legislation. This and other 
changes were made in order to keep the bill within strict budget 
guidelines governing direct spending, or PAYGO.
  The compromise includes a House-passed provision authorizing the 
placement of a memorial at Arlington National Cemetery honoring 
veterans of the Battle of the Bulge. It includes as well a provision 
which originated in the House to raise the Medal of Honor pension to 
$1,000 monthly and to make retroactive payments for those who were 
awarded this medal.
  A provision is also included to extend coverage under the Soldiers' 
and Sailors' Civil Relief Act to members of the National Guard who are 
called to active service for more than 30 consecutive days to respond 
to a national emergency. Many members expressed an interest in this 
particular provision, and I commend Mr. Evans for a similar proposal in 
H.R. 4017. Senator Wellstone was the author of a Senate proposal, and I 
am pleased that our compromise agreement on this is built upon their 
work.
  For the benefit of my colleagues, I include at this point in the 
Record a joint explanatory statement describing the compromise 
agreement we have reached with the other body.
  Mr. Speaker, I urge all Members to support this bipartisan measure 
for our Nation's veterans.

    Explanatory Statement on House Amendment to Senate Bill, S. 2237

       S. 2237, as amended, the ``Veterans Benefits Act of 2002,'' 
     reflects a Compromise Agreement the Senate and House 
     Committees on Veterans' Affairs have reached on the following 
     bills considered in the House and Senate during the 107th 
     Congress: S. 2237 (``Senate Bill''), H.R. 2561, H.R. 3423, 
     H.R. 4085, H.R. 4940, and H.R. 5055 (``House Bills''). S. 
     2237, as amended, passed the Senate on September 26, 2002; 
     H.R. 2561 and H.R. 3423, as amended, passed the House on 
     December 20, 2001; H.R. 4085, as amended, passed the House on 
     May 21, 2002; and H.R. 4940, as amended, and H.R. 5055 passed 
     the House on July 22, 2002.
       The Senate and House Committees on Veterans' Affairs have 
     prepared the following explanation of S. 2237, as amended, 
     (``Compromise Agreement''). Differences between the 
     provisions contained in the Compromise Agreement and the 
     related provisions of S. 2237, H.R. 2561, H.R. 3423, H.R. 
     4085, H.R. 4940, H.R. 5055, are noted in this document, 
     except for clerical corrections, conforming changes made 
     necessary by the Compromise Agreement, and minor drafting, 
     technical, and clarifying changes.

            TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS

 Retention of Civilian Health and Medical Program of the Department of 
     Veterans Affairs for Surviving Spouses Remarrying After Age 55

     Current law
       Section 103(d) of title 38, United States Code, prohibits a 
     surviving spouse who has remarried from receiving dependency 
     and indemnity compensation (``DIC''), VA health insurance 
     under the Civilian Health and Medical Program of the 
     Department of Veterans Affairs (``CHAMPVA''), home loan, and 
     education benefits. These benefits may be reinstated in the 
     event the subsequent remarriage is terminated.
     House bill
       Section 3 of H.R. 4085 would allow a surviving spouse who 
     remarries after attaining age 65 to retain DIC, CHAMPVA 
     health insurance, home loan, and education benefits. Spouses 
     who remarried at age 65 or older prior to enactment of the 
     bill would have one year from the date of enactment to apply 
     for reinstatement of DIC and related benefits. The amount of 
     DIC would be paid with no reduction of certain other benefits 
     to which the surviving spouse might be entitled.
     Senate bill
       The Senate Bill contains no comparable provision.
     Compromise agreement
       Section 101 of the Compromise Agreement would provide that 
     a surviving spouse, upon remarriage after attaining age 55, 
     would retain CHAMPVA eligibility. Surviving spouses who 
     remarried after attaining age 55 but prior to enactment of 
     this Act would have one year to apply for reinstatement of 
     this benefit. The Committees expect the Secretary will 
     maintain data concerning the number of surviving spouses who 
     become eligible or retain eligibility under this provision.
       The Committees intend in the 108th Congress to consider 
     full restoration of benefits for surviving spouses who 
     remarry after attaining age 55.

Clarification of Entitlement to Special Monthly Compensation for Women 
       Veterans Who Have Service-connected Loss of Breast Tissue

     Current law
       Section 1114(k) of title 38, United States Code, authorizes 
     the Department of Veterans Affairs (``VA'') to provide 
     special monthly compensation to any woman veteran who ``has 
     suffered the anatomical loss of one or

[[Page H9004]]

     both breasts (including loss by mastectomy)'' as a result of 
     military service. Regulations published at section 4.116 of 
     title 38, Code of Federal Regulations, have limited this 
     compensation to ``Anatomical loss of a breast exists when 
     there is complete surgical removal of breast tissue (or the 
     equivalent loss of breast tissue due to injury). As defined 
     under this section, radical mastectomy, modified radical 
     mastectomy, and simple (or total) mastectomy result in 
     anatomical loss of a breast, but wide local excision, with or 
     without significant alteration of size or form, does not.''
     Senate bill
       Section 101 of S. 2237 would amend section 1114(k) of title 
     38, United States Code, to specify that women veterans who 
     have suffered the anatomical loss of half of the tissue of 
     one or both breasts in or as a result of military service may 
     be eligible for special monthly compensation.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 102 of the Compromise Agreement follows the Senate 
     language, and would amend it to extend eligibility to women 
     veterans who have suffered the anatomical loss of 25 percent 
     or more of tissue from one or both breasts (including loss by 
     mastectomy or partial mastectomy) or who received radiation 
     treatment of breast tissue. The Committees intend that this 
     change should extend eligibility for special monthly 
     compensation to women veterans whose medical treatments 
     (other than ``cosmetic surgery'') or injuries have resulted 
     in a significant change in size, form, function, or 
     appearance of one or both breasts.

  Specification of Hearing Loss Required for Compensation For Hearing 
                         Loss in Paired Organs

     Current Law
       Under section 1160 of title 38, United States Code, special 
     consideration is extended to a veteran's service-connected 
     disabilities in ``paired organs or extremities,'' such as 
     kidneys, lungs, feet, or hands. For these paired organs or 
     extremities, VA is authorized when rating disability to 
     consider any degree of damage to both organs, even if only 
     one resulted from military service. Total impairment is not a 
     requirement for kidneys, hands, feet, or lungs. Proportional 
     impairment, such as ``the loss or loss of use of one kidney 
     as a result of service-connected disability and involvement 
     of the other kidney as a result of non-service-connected 
     disability,'' is specifically provided for in subsections 
     (2), (4), and (5) of section 1160(a) of title 38, United 
     States Code. However, total deafness in both ears is required 
     under section 1160(a)(3) of title 38, United States Code, for 
     special consideration of hearing loss.
     Senate bill
       Section 102 of S. 2237 would eliminate the word ``total'' 
     from section 1160(a)(3) of title 38, United States Code, and 
     allow VA to consider partial non-service-connected hearing 
     loss in one ear when rating disability for veterans with 
     compensable service- connected hearing loss in the other ear.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 103 of the Compromise Agreement follows the Senate 
     language.

  Assessment of Acoustic Trauma Associated With Military Service From 
                        World War II to Present

     Current law
       There is no applicable current law.

                              Senate bill

       Section 103(a) of S. 2237 would authorize the Secretary to 
     establish a presumption of service connection for hearing 
     loss or tinnitus in veterans who served in certain military 
     occupational specialties during specific periods of time if 
     VA finds that evidence warrants such a presumption. Section 
     103(b) would extend presumption rebuttal provisions in title 
     38, United States Code, to cover service-connected hearing 
     loss, should such a presumption be established.
       Section 103(c) of the Senate Bill would require VA to enter 
     into a contract with the National Academy of Sciences 
     (``NAS'') or an equivalent scientific organization to review 
     scientific evidence on forms of acoustic trauma that could 
     contribute to hearing disorders for personnel serving in 
     specific military occupational specialties. Section 
     103(c)(2)(B) of the Senate Bill would direct NAS to identify 
     forms of acoustic trauma likely to cause hearing damage in 
     servicemembers, and, in section 103(c)(2)(C), to determine 
     whether such damage would be immediate, cumulative, or 
     delayed. Section 103(c)(2)(D) of the Senate Bill would 
     require NAS to assess when audiometric data collected by the 
     military services became adequate to allow an objective 
     assessment of individual exposure by VA, examining a 
     representative sample of records from World War II to present 
     by period of service. Section 103(c)(2)(E) of the Senate Bill 
     would require NAS to identify military occupational 
     specialties in which servicemembers are likely to be exposed 
     to sufficient acoustic trauma to cause hearing disorders.
       Section 103(d) of S. 2237 would require VA to report on 
     medical care provided to veterans for hearing disorders from 
     fiscal years 1999-2001; on the number of disability 
     compensation claims received and granted for hearing loss, 
     tinnitus, or both during those years; and an estimate of the 
     total cost to VA of adjudicating those claims in full-time 
     employee equivalents.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 104 of the Compromise Agreement would strike 
     sections 103(a) and 103(b) of the Senate Bill authorizing a 
     presumption of service connection. The Compromise Agreement 
     follows the Senate language requiring VA to enter into a 
     contract with NAS, but would change the focus of the study to 
     assessment of acoustic trauma associated with military 
     service from World War II to present.
       The Compromise Agreement would strike sections 
     103(c)(2)(B), 103(c)(2)(D), 103(c)(2)(E), and all references 
     to military occupational specialties. The Compromise 
     Agreement follows the Senate language requiring NAS to 
     determine how much exposure to acoustic trauma or noise 
     damage during military service might cause or contribute to 
     hearing loss, hearing threshold shift, or tinnitus, and 
     whether this damage may be immediate- or delayed-onset, 
     cumulative, progressive, or a combination of these.
       The Compromise Agreement would preserve provisions 
     requiring NAS to assess when audiometric measures became 
     adequate to assess individual hearing threshold shift 
     reliably and when sufficiently protective hearing 
     conservation measures became available. It would also add a 
     third provision requiring NAS to identify age, occupational 
     history, and other factors which could contribute to an 
     individual's noise-induced hearing loss.
       In assessing when audiometric data collected by the 
     military became adequate for VA to evaluate if a veteran's 
     hearing threshold shift could be detected at or prior to 
     separation, the Committees intend for NAS to review and 
     report on a representative sample of individual records. This 
     should reflect not only an appropriate distribution of 
     individuals among the various Armed Forces, but within each 
     military service branch so that these records represent 
     servicemembers who might reasonably be expected to have 
     different levels of noise exposure in the course of their 
     duties. The representative sample should also include records 
     of servicemembers discharged during or after distinct periods 
     of war or conflict and consider the environment in which they 
     served in order to gauge how adequately each branch collected 
     audiometric data following World War II, the Korean conflict, 
     the Vietnam era, and during and following the Persian Gulf 
     War.
       The Compromise Agreement would generally follow the Senate 
     language requiring VA to report on hearing loss claims and 
     medical treatment for hearing disorders. The Compromise 
     Agreement would amend this language to refer to the number of 
     decisions issued and their results, rather than claims 
     submitted in fiscal years 2000 through 2002, and would remove 
     references to military occupational specialties.

                       TITLE II--MEMORIAL AFFAIRS

   Prohibition on Certain Additional Benefits For Persons Committing 
                             Capital Crimes

     Current law
       Sections 2411 and 2408(d) of title 38, United States Code, 
     prohibit persons who are convicted of capital crimes from 
     interment or memorialization in National Cemetery 
     Administration cemeteries, Arlington National Cemetery 
     (``ANC''), or a State cemetery that receives VA grant 
     funding. Section 5313 of title 38, United States Code, 
     further limits VA benefits available to veterans who die 
     while fleeing prosecution or after being convicted of a 
     capital crime.
     Senate bill
       Section 402 of S. 2237 would prohibit the issuance of 
     Presidential Memorial Certificates, flags, and memorial 
     headstones or grave markers to veterans convicted of or 
     fleeing from prosecution for a State or Federal capital 
     crime.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 201 of the Compromise Agreement follows the Senate 
     language.

 Procedures for Disqualification of Persons Committing Capital Crimes 
        For Interment or Memorialization in National Cemeteries

     Current law
       Section 2411 of title 38, United States Code, prohibits 
     interment or memorialization in National Cemetery 
     Administration cemeteries or in Arlington National Cemetery 
     (``ANC'') of any person convicted of a capital crime. This 
     section further prohibits interment or memorialization of 
     persons found by the Secretary of Veterans Affairs or the 
     Secretary of the Army to have committed capital crimes but 
     who avoided conviction of the crime through flight or death 
     preceding prosecution. In such cases, the Secretary of 
     Veterans Affairs or the Secretary of the Army must receive 
     notice from the Attorney General of the United States, or the 
     appropriate State official, of the Secretary's own finding 
     before the prohibition shall apply.
     Senate bill
       Section 403 of S. 2237 would eliminate the requirement that 
     the Secretary of Veterans Affairs or the Secretary of the 
     Army be notified of a finding by the Attorney General or

[[Page H9005]]

     the appropriate State official in cases of persons who are 
     found to have committed capital crimes but who avoided 
     conviction of the crime through flight or death preceding 
     prosecution.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 202 of the Compromise Agreement follows the Senate 
     language.

 Application of Department of Veterans Affairs Benefit for Government 
Markers for Marked Graves of Veterans at Private Cemeteries to Veterans 
                  Dying on or After September 11, 2001

     Current law
       Section 2306(d)(1) provides that the Secretary shall 
     furnish a government marker to those families who request one 
     for the marked grave of a veteran buried at a private 
     cemetery, who died on or after December 27, 2001.
     House Bill
       Section 6 of H.R. 4940 would make section 2306(d)(1) 
     retroactive to veterans who died on or after September 11, 
     2001.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise agreement
       Section 203 of the Compromise Agreement follows the House 
     language.

 Authorization of Placement of Memorial in Arlington National Cemetery 
  Honoring World War II Veterans Who Fought in the Battle of the Bulge

     Current law
       Section 2409 of title 38, United States Code, authorizes 
     the Secretary of Army to erect appropriate memorials or 
     markers in Arlington National Cemetery to honor the memory of 
     members of the Armed Forces.
     House bill
       H.R. 5055 would authorize the Secretary of the Army to 
     place in ANC a new memorial marker honoring veterans who 
     fought in the Battle of the Bulge during World War II. The 
     Secretary of the Army would have exclusive authority to 
     approve an appropriate design and site within ANC for the 
     memorial.
     Senate bill
       The Senate Bill contains no comparable provision.
     Compromise agreement
       Section 204 of the Compromise Agreement would authorize the 
     Secretary of the Army to place in ANC a new memorial marker 
     honoring veterans who fought in the Battle of the Bulge.

                        TITLE III--OTHER MATTERS

   Increase in Aggregate Annual Amount Available for State Approving 
Agencies for Administrative Expenses for Fiscal Years 2003, 2004, 2005, 
                             2006, and 2007

     Current law
       Section 3674(a)(4) of title 38, United States Code, funds 
     State approving agencies. From fiscal years 1995 to 2000, 
     State approving agency (``SAA'') funding was capped, with no 
     annual increase, at $13 million. Public Law 106-419 increased 
     SAA funding to $14 million for fiscal years 2001 and 2002. 
     Under current law, the authorization amount was reduced to 
     $13 million as of October 1, 2002. SAAs are the agencies that 
     determine which schools, courses, and training programs 
     qualify as eligible for veterans seeking to use their GI Bill 
     benefits.
     Senate bill
       Section 201 of S. 2237 would restore SAA funding to $14 
     million per year and would increase it to $18 million per 
     year during fiscal years 2003, 2004, and 2005.
     House bill
       Section 6 of H.R. 4085 contains an identical provision.
     Compromise agreement
       Section 301 of the Compromise Agreement would restore SAA 
     funding at $14 million for fiscal year 2003, $18 million for 
     fiscal year 2004, $18 million for fiscal year 2005, $19 
     million for fiscal year 2006, and $19 million for fiscal year 
     2007.

 Authority for Veterans' Mortgage Life Insurance To Be Carried Beyond 
                                 Age 70

     Current law
       Section 2106(i)(2) of title 38, United States Code, 
     provides that Veterans' Mortgage Life Insurance (``VMLI'') 
     shall be terminated on the veteran's seventieth birthday. 
     VMLI is designed to provide financial protection to cover 
     eligible veterans' home mortgages in the event of death. VMLI 
     is issued only to those severely disabled veterans who have 
     received grants for Specially Adapted Housing from the 
     Department of Veterans Affairs.
     House bill
       Section 5(b) of H.R. 4085 would permit veterans eligible 
     for specially-adapted housing grants to continue their VMLI 
     coverage beyond age 70. No new policies would be issued after 
     age 70.
     Senate bill
       The Senate Bill contains no comparable provision.
     Compromise agreement
       Section 302 of the Compromise Agreement follows the House 
     language.

        Authority To Guarantee Hybrid Adjustable Rate Mortgages

     Current law
       There is no authorization in current law for VA to 
     guarantee adjustable rate mortgages (``ARMs'') and hybrid 
     adjustable rate mortgages (``hybrid ARMs''). A hybrid ARM 
     combines features of fixed rate mortgages and adjustable rate 
     mortgages. A hybrid ARM has a fixed rate of interest for at 
     least the first 3 years of the loan, with an annual interest 
     rate adjustment after the fixed rate has expired.
     Senate bill
       Section 301 of S. 2237 would authorize VA to establish a 
     three-year pilot program to guarantee hybrid ARMs and 
     reauthorize a fiscal year-1993 to 1995 pilot program to 
     guarantee conventional ARMs. This authority would begin in 
     fiscal year 2003 and expire at the end of fiscal year 2005.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 303 of the Compromise Agreement would authorize VA 
     to guarantee hybrid ARMs for a period of two years. The 
     effective date of this provision would be October 1, 2003.

    Increase in the Amount Payable as Medal of Honor Special Pension

     Current law
       Section 1562 of title 38, United States Code, provides a 
     special pension of $600 per month to recipients of the Medal 
     of Honor. Eligibility to receive the Medal of Honor special 
     pension is contingent upon having first been awarded the 
     Medal of Honor.
     Senate bill
       Section 104 of S. 2237 would increase the Medal of Honor 
     special pension from $600 to $1,000 per month. Beginning in 
     January 2003, the pension amount would be adjusted annually 
     to maintain the value of the pension in the face of the 
     rising cost of living. The amount of this adjustment would 
     match the percentage of the cost-of-living adjustment paid to 
     Social Security recipients. The Senate Bill would also 
     provide for a one-time, lump-sum payment in the amount of 
     special pension the recipient would have received between the 
     date of the act of valor and the date that the recipient's 
     pension actually commenced.
     House bill
       H.R. 2561 would increase the special pension payable to 
     Medal of Honor recipients from $600 to $1,000 per month, and 
     provide a lump sum payment for existing Medal of Honor 
     recipients in an amount equal to the total amount of special 
     pension that the person would have received had the person 
     received special pension during the period beginning the 
     first day of the month that began after the act giving rise 
     to the receipt of the Medal of Honor, and ending with the 
     last day of the month preceding the month that such person's 
     special compensation commenced. H.R. 2561 also would provide 
     criminal penalties for the unauthorized purchase or 
     possession of the Medal and for making a false representation 
     as a Medal recipient.
     Compromise agreement
       Section 304 of the Compromise Agreement follows the Senate 
     language, but would modify the effective date of the 
     provision to September 1, 2003. It is the Committee's 
     understanding that the first month a Medal of Honor recipient 
     would receive special pension is October 2003.
       It is the Committees' intent that the lump sum payment of 
     special pension be determined using the rates of special 
     pension and the laws of eligibility in effect (including 
     applicable age requirements) for months beginning after an 
     individual's act of gallantry. Excluded from this rule would 
     be the law of eligibility requiring an individual to have 
     been awarded a Medal of Honor.

Extension of Protections Under Soldiers' and Sailors' Civil Relief Act 
of 1940 to National Guard Members Called to Active Duty Under Title 32, 
                           United States Code

     Current law
       The Soldiers' and Sailors' Civil Relief Act of 1940 
     (``SSCRA''), sections 510 et seq., of title 50, United States 
     Code Appendix, suspends enforcement of certain civil 
     liabilities and provides certain rights and legal protections 
     to servicemembers who have been called up to active duty 
     under title 10, United States Code. However, these 
     protections do not extend to National Guard members called to 
     duty under section 502(f) of title 32, United States Code, 
     ``to perform training or other duty.'' Certain homeland 
     security duties performed under title 32, United States Code, 
     such as protecting the nation's airports, have been carried 
     out at the request and expense of the Federal government with 
     National Guard members under the command of their state 
     governors.
     Senate bill
       Section 401 of S. 2237 would expand SSCRA protections to 
     include those National Guard members serving full-time, upon 
     an order of the Governor of a State at the request of the 
     head of a Federal law enforcement agency and with the 
     concurrence of the Secretary of Defense, under 502(f) of 
     title 32, United States Code for homeland security purposes.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 305 of the Compromise Agreement would provide that 
     when members of the National Guard are called to active 
     service for

[[Page H9006]]

     more than 30 consecutive days under section 502(f) of title 
     32, United States Code, to respond to a national emergency 
     declared by the President, coverage under the provisions of 
     the SSCRA would be available. The Committees note that this 
     provision is intended to extend protections of the SSCRA to 
     members of the National Guard when called to duty under 
     circumstances similar to those following the terrorist 
     attacks of September 11, 2001.

               Extension of Income Verification Authority

     Current law
       Section 6103(l)(7)(D) of the Internal Revenue Code gives 
     the Internal Revenue Service (``IRS'') authority to furnish 
     income information to the VA from IRS records so that VA 
     might determine eligibility for VA need-based pension, 
     parents dependency and indemnity compensation, and priority 
     for VA health-care services. This provision currently expires 
     on September 30, 2003, pursuant to Public Law 105-33.
       Section 5317 of title 38, United States Code, provides 
     parallel authority for VA to use IRS information and requires 
     VA to notify applicants for needs-based benefits that income 
     information furnished by the applicant may be compared with 
     the information obtained from the Departments of Health and 
     Human Services and Treasury under section 6103(l)(7)(D). This 
     parallel authority is scheduled to expire on September 30, 
     2008, pursuant to Public Law 106-409.
     Senate bill
       Section 106(a) of S. 2237 would extend section 
     6103(l)(7)(D) of the Internal Revenue Code through September 
     30, 2011. Section 106(b) would extend section 5317 of title 
     38, United States Code, through September 30, 2011.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 306 of the Compromise Agreement would extend 
     section 6103(l)(7)(D) of the Internal Revenue Code through 
     September 30, 2008.

                        Fee for Loan Assumption

     Current law
       Section 3729(b)(2)(1) of title 38, United States Code, 
     requires a 0.50 percent loan fee for active-duty 
     servicemembers, veterans, Reservists, and others 
     participating in loan assumptions under section 3714.
     Senate bill
       The Senate Bill contains no comparable language.
     House bill
       The House Bills contain no comparable language.
     Compromise agreement
       Section 307 of the Compromise Agreement would increase the 
     loan fee for assumptions for loans closed more than 7 days 
     after enactment in fiscal year 2003 from 0.50 percent to 1.0 
     percent. The Committees intend this fee increase to expire at 
     the end of fiscal year 2003.

                       TITLE IV--JUDICIAL MATTERS

       The U.S Court of Appeals for Veterans Claims (``CAVC'') is 
     an Article I Court of limited jurisdiction. It has come to 
     the Committees' attention that the Administration has 
     disregarded Congressional intent in interpreting the CAVC to 
     be part of the Executive Branch and subject to rescissions of 
     Executive Branch agency budgets, pursuant to section 1403 of 
     Public Law 107-206. The Committees note that while the budget 
     for the Court is included in the President's budget, the 
     Executive Branch has no authority to review it. Public Law 
     100-687, section 4082(a). It is the Committees' intent to 
     clarify that the CAVC is not part of the Executive Branch. 
     The Committees have so stated on other occasions, e.g., ``The 
     Court, established by the Congress under Article I of the 
     Constitution to exercise judicial power, has unusual status 
     as an independent tribunal that is not subject to the control 
     of the President or the executive branch.'' House of 
     Representatives Report 107-156, July 24, 2001, and Senate 
     Report 107-86, October 15, 2001.

   Standard for Reversal by Court of Appeals for Veterans Claims of 
        Erroneous Finding of Fact by Board of Veterans' Appeals

     Current law
       Under section 7261(a)(4) of title 38, United States Code, 
     the Court of Appeals for Veterans Claims applies a ``clearly 
     erroneous'' standard of review to findings of fact made by 
     the Board of Veterans' Appeals (``BVA''). The ``clearly 
     erroneous'' standard has been defined as requiring CAVC to 
     uphold BVA findings of fact if the findings are supported by 
     ``a plausible basis in the record . . . even if [CAVC] might 
     not have reached the same factual determinations.'' Wensch v. 
     Principi, 15 Vet. App. 362, 366-68 (2001). The recent U.S. 
     Court of Appeals for the Federal Circuit decision of Hensley 
     v. West, 212 F.3d 1255 (Fed. Cir. 2000) emphasized that CAVC 
     should perform only limited, deferential review of BVA 
     decisions, and stated that BVA fact-finding ``is entitled on 
     review to substantial deference.'' Id. at 1263.
       Section 5107(b) of title 38, United States Code, provides 
     that VA must find for the claimant when, in considering the 
     evidence of record, there is an approximate balance of 
     positive and negative evidence regarding any material issue 
     including the ultimate merits of the claim. This ``benefit of 
     the doubt'' standard applicable to proceedings before VA is 
     unique in administrative law. Under the benefit of the doubt 
     rule, unless the preponderance of the evidence is against the 
     claimant, the claim is granted. Gilbert v. Derwinski, 1 Vet. 
     App. 49 (1990) and Forshey v. Principi, 284 F.3d 1335 
     (Fed. Cir. 2002).
     Senate bill
       Section 501 of S. 2237 would amend section 7261(a)(4) of 
     title 38 to change the standard of review CAVC applies to BVA 
     findings of fact from ``clearly erroneous'' to ``unsupported 
     by substantial evidence.'' Section 502 would also cross-
     reference section 5107(b) in order to emphasize that the 
     Secretary's application of the ``benefit of the doubt'' to an 
     appellant's claim would be considered by CAVC on appeal.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 401 of the Compromise Agreement follows the Senate 
     language with the following amendments.
       The Compromise Agreement would modify the standard of 
     review in the Senate bill in subsection (a) by deleting the 
     change to a ``substantial evidence'' standard. It would 
     modify the requirements of the review the Court must perform 
     when it is making determinations under section 7261(a) of 
     title 38, United States Code. Since the Secretary is 
     precluded from seeking judicial review of decisions of the 
     Board of Veterans Appeals, the addition of the words 
     ``adverse to the claimant'' in subsection (a) is intended to 
     clarify that findings of fact favorable to the claimant may 
     not be reviewed by the Court. Further, the addition of the 
     words ``or reverse'' after ``and set aside'' is intended to 
     emphasize that the Committees expect the Court to reverse 
     clearly erroneous findings when appropriate, rather than 
     remand the case.
       New subsection (b) would maintain language from the Senate 
     bill that would require the Court to examine the record of 
     proceedings before the Secretary and BVA and the special 
     emphasis during the judicial process on the benefit of the 
     doubt provisions of section 5107 (b) as it makes findings of 
     fact in reviewing BVA decisions. This would not alter the 
     formula of the standard of review on the Court, with the 
     uncertainty of interpretation of its application that would 
     accompany such a change. The combination of these changes is 
     intended to provide for more searching appellate review of 
     BVA decisions, and thus give full force to the ``benefit of 
     doubt'' provision.
       The Compromise Agreement would also modify the effective 
     date of this provision to apply to cases that have not been 
     decided prior to the enactment of this Act. This provision 
     would not apply to cases in which a decision has been made, 
     but are not final because the time to request panel review or 
     to appeal to the U.S. Court of Appeals for the Federal 
     Circuit (``Federal Circuit'') has not expired.

 Review by Court of Appeals for the Federal Circuit of Decisions of Law

     Current law
       Under section 7292(a) of title 38, United States Code, the 
     Federal Circuit may only review CAVC decisions involving 
     questions of law ``with respect to the validity of any 
     statute or regulation.'' It does not explicitly have the 
     authority to hear appeals of CAVC decisions that are not 
     clearly legal interpretations of statutes or regulations.
     Senate bill
       Section 502 of S. 2237 would amend sections 7292(a) and (c) 
     of title 38, United States Code, to specifically provide for 
     appellate review of a CAVC decision on any rule of law.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 402 of the Compromise Agreement follows the Senate 
     language.

 Authority of Court of Appeals for Veterans Claims to Award Fees Under 
       Equal Access to Justice Act to Non-Attorney Practitioners

     Current law
       Currently, section 2412(d) of title 28, United States Code, 
     the Equal Access to Justice Act (``EAJA''), shifts the burden 
     of attorney fees from the citizen to the government in cases 
     where the government's litigation position is not 
     substantially justified and the citizen qualifies under 
     certain income and asset criteria. Qualified non-attorneys 
     admitted to practice before the CAVC may only receive fees if 
     the EAJA application is signed by an attorney.
     Senate bill
       Section 503 of S. 2237 would allow qualified non-attorneys 
     admitted to practice before the CAVC to be awarded fees under 
     EAJA for representation provided to VA claimants without the 
     requirement that an attorney sign the EAJA application.
     House bill
       The House Bills contain no comparable provision.
     Compromise agreement
       Section 403 of the Compromise Agreement follows the Senate 
     language.
       The Committees expect that in determining the amount of 
     reasonable fees payable to non-attorney practitioners, the 
     Court will apply the usual rules applicable to fees

[[Page H9007]]

     for the work of other non-attorneys such as paralegals and 
     law students based upon prevailing market rates for the kind 
     and quality of the services furnished. 28 U.S.C. 
     Sec. 2412(d)(2)(A). See, Sandoval v. Brown, 9 Vet. App. 
     177, 181 (1996).

                   Legislative Provisions Not Adopted


                      ARLINGTON NATIONAL CEMETERY

     Current law
       Eligibility for burial at Arlington National Cemetery is 
     governed by federal regulations at section 553.15 of title 
     32, Code of Federal Regulations. The following categories of 
     persons are eligible for in-ground burial: active duty 
     members of the Armed Forces, except those members serving on 
     active duty for training; retired members of the Armed Forces 
     who have served on active duty, are on a retired list and are 
     entitled to receive retirement pay; former members of the 
     Armed Forces discharged for disability before October 1, 
     1949, who served on active duty and would have been eligible 
     for retirement under 10 U.S.C. 1202 had the statute been in 
     effect on the date of separation; honorably discharged 
     members of the Armed Forces awarded the Medal of Honor, 
     Distinguished Service Cross, Air Force Cross or Navy Cross, 
     Distinguished Service Medal, Silver Star, or Purple Heart; 
     former prisoners of war who served honorably and who died on 
     or after November 30, 1993; provided they were honorably 
     discharged from the Armed Forces, elected federal officials 
     (the President, Vice President, and Members of Congress), 
     federal cabinet secretaries and deputies, agency directors 
     and certain other high federal officials (level I and II 
     executives), Supreme Court Justices, and chiefs of certain 
     diplomatic missions; the spouse, widow or widower, minor 
     child (under 21 years of age) and, at the discretion of the 
     Secretary of the Army, certain unmarried adult children, and 
     certain surviving spouses.
     House bill
       H.R. 4940 would codify eligibility criteria for in-ground 
     burial at Arlington National Cemetery: members of the Armed 
     Forces who die on active duty; retired members of the Armed 
     Forces, including reservists who served on active duty; 
     members or former members of a reserve component who, but for 
     age, would have been eligible for retired pay; members of a 
     reserve component who die in the performance of duty while on 
     active duty training or inactive duty training; former 
     members of the Armed Forces who have been awarded the Medal 
     of Honor, Distinguished Service Cross (Air Force Cross or 
     Navy Cross), Distinguished Service Medal, Silver Star, or 
     Purple Heart; former prisoners of war who die on or after 
     November 30, 1993; the President or any former President; 
     members of the Guard or Reserves who served on active duty, 
     who are eligible for retirement, but who have not yet 
     retired; the spouse, surviving spouse, minor child and at the 
     discretion of the Superintendent of Arlington, and certain 
     unmarried adult children. Veterans who do not meet these 
     requirements might qualify for the placement of their 
     cremated remains in Arlington's columbarium.
       H.R. 4940 would also provide the President the authority to 
     grant a waiver for burial at Arlington in the case of an 
     individual not otherwise eligible for burial under the 
     criteria outlined above but whose acts, service, or 
     contributions to the Armed Forces were so extraordinary as to 
     justify burial at Arlington. The President would be allowed 
     to delegate the waiver authority only to the Secretary of the 
     Army.
       H.R. 4940 would codify existing regulatory eligibility for 
     interment of cremated remains in the columbarium at Arlington 
     (generally, this includes all veterans with honorable service 
     and their dependents), clarify that only memorials honoring 
     military service may be placed at Arlington and set a 25-year 
     waiting period for such memorials, and clarify that in the 
     case of individuals buried in Arlington before the date of 
     enactment, the surviving spouse is deemed to be eligible if 
     buried in the same gravesite.
     Senate bill
       The Senate Bill contains no comparable provision.

 Increase of Veterans' Mortgage Life Insurance (``VMLI'') Coverage to 
                                $150,000

     Current law
       Section 2106(b) of title 38, United States Code, provides 
     that VMLI may not exceed $90,000.
     House bill
       Section 5(a) of H.R. 4085 would increase the maximum amount 
     of coverage available under Veterans' Mortgage Life Insurance 
     from $90,000 to $150,000. This would increase the amount of 
     the outstanding mortgage, which would be payable if the 
     veteran were to die before the mortgage is paid in full.
     Senate bill
       The Senate Bill contains no comparable provision.

Uniform Home Loan Guaranty Fees for Qualifying Members of the Selected 
                    Reserve and Active Duty Veterans

     Current law
       Section 3729(b) of title 38, United States Code, provides 
     the amounts in fees to be collected from each person 
     participating in VA's Home Loan Guaranty Program. Currently, 
     members of the Selected Reserve pay a 0.75 percent higher 
     funding fee under the home loan program than other eligible 
     veterans.
     House bill
       Section 4 of H.R. 4085 would amend the Loan Fee Table in 
     section 3729(b) of title 38, United States Code, to provide 
     for uniformity in the funding fees charged to members of the 
     Selected Reserve and active duty veterans for VA home 
     loans. The fee would be reduced for the period beginning 
     on October 1, 2002, and ending on September 30, 2005.
     Senate bill
       The Senate Bill contains no comparable provision.

    Prohibit Assignment of Monthly Veterans Benefits and Create an 
 Education and Outreach Campaign About Financial Services Available to 
                                Veterans

     Current law
       Section 5301 of title 38, United States Code, currently 
     prohibits the assignment or attachment of a veteran's 
     disability compensation or pension benefits. In recent years, 
     private companies have offered contracts to veterans that 
     exchange up-front lump sums for future benefits.
     Senate bill
       Section 105 of S. 2237 would clarify the applicability of 
     the prohibition on assignment of veterans benefits through 
     agreements regarding future receipt of compensation, pension, 
     or dependency and indemnity compensation. This provision 
     would make violation of this prohibition punishable by a fine 
     and up to one year in jail.
       This provision would also require VA to create a five-year 
     education and outreach campaign to inform veterans about 
     available financial services.
     House bill
       The House Bills contain no comparable provision.

Clarification of Retroactive Application of Provisions of the Veterans 
                         Claims Assistance Act

     Current law
       Public Law 106-475, the Veterans Claims Assistance Act of 
     2000 (``VCAA''), restored and enhanced VA's duty to assist 
     claimants in developing their claims for veterans benefits. 
     Specifically, section 3(a) of the VCAA requires VA to take 
     certain steps to assist claimants.
       Two recent decisions by the U.S. Court of Appeals for the 
     Federal Circuit have found that the provisions in the VCAA 
     pertaining to VA's duty to assist cannot be applied 
     retroactively to claims pending at the time of its enactment. 
     In Dyment v. Principi, 287 F.3d 1377 (Fed. Cir. 2002), the 
     Federal Circuit stated: ``The Supreme Court has held that a 
     federal statute will not be given retroactive effect unless 
     Congress has made its contrary intention clear. There is 
     nothing in the VCAA to suggest that section 3(a) was intended 
     to applied [sic] retroactively.'' In Bernklau v. Principi, 
     291 F.3d 795, 806 (Fed. Cir. 2002), the Court again 
     concluded: ``[S]ection 3(a) of the VCAA does not apply 
     retroactively to require that proceedings that were complete 
     before the Department of Veterans Affairs and were on appeal 
     to the Court of Appeals for Veterans Claims or this court be 
     remanded for readjudication under the new statute.''
     Senate bill
       Section 504 of S. 2237 would apply section 3 of VCAA 
     retroactively to cases that were ongoing either at various 
     adjudication levels within VA or pending at the applicable 
     Federal courts prior to the date of VCAA's enactment. Section 
     505 of the Senate Bill would provide for claims decided 
     between the handing down of the Dyment case and enactment of 
     this provision to receive the full notice, assistance, and 
     protection afforded under the VCAA.
     House bill
       The House Bills contain no comparable provision.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. Without objection, the various titles are 
amended.
  There was no objection.

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