[Congressional Record (Bound Edition), Volume 149 (2003), Part 16]
[House]
[Pages 22671-22705]
[From the U.S. Government Publishing Office, www.gpo.gov]




    CONFERENCE REPORT ON H.R. 2555, DEPARTMENT OF HOMELAND SECURITY 
                        APPROPRIATIONS ACT, 2004

  Mr. ROGERS of Kentucky (during consideration of H.R. 1409) submitted 
the following conference report and statement on the bill (H.R. 2555) 
making appropriations for the Department of Homeland Security for the 
fiscal year ending September 30, 2004, and for other purposes:

                  Conference Report (H. Rept. 108-280)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2555) ``making appropriations for the Department of Homeland 
     Security for the fiscal year ending September 30, 2004, and 
     for other purposes'', having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the Department 
     of Homeland Security for the fiscal year ending September 30, 
     2004, and for other purposes, namely:

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

       For necessary expenses of the Office of the Secretary of 
     Homeland Security, as authorized by section 102 of the 
     Homeland Security Act of 2002 (6 U.S.C. 112), and executive 
     management of the Department of Homeland Security, as 
     authorized by law, $80,794,000: Provided, That not to exceed 
     $40,000 shall be for allocation within the Department for 
     official reception and representation expenses as the 
     Secretary may determine.

              Office of the Under Secretary for Management

       For necessary expenses of the Office of the Under Secretary 
     for Management and Administration, as authorized by sections 
     701-705 of the Homeland Security Act of 2002 (6 U.S.C. 341-
     345), $130,983,000: Provided, That of the total amount 
     provided, $20,000,000 shall remain available until expended 
     solely for the alteration and improvement of facilities and 
     for relocation costs necessary for the interim housing of the 
     Department's headquarters' operations and organizations 
     collocated therewith.

                 Department-Wide Technology Investments

       For development and acquisition of information technology 
     equipment, software, services, and related activities for the 
     Department of Homeland Security, and for the costs of 
     conversion to narrowband communications, including the cost 
     for operation of the land mobile radio legacy systems, 
     $185,000,000, to remain available until expended: Provided, 
     That none of the funds appropriated shall be used to support 
     or supplement the appropriations provided for the United 
     States Visitor and Immigrant Status Indicator Technology 
     project or the Automated Commercial Environment.

                      Office of Inspector General

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978 (5 U.S.C. App.), $58,664,000, of which not to exceed 
     $100,000 may be used for certain confidential operational 
     expenses, including the payment of informants, to be expended 
     at the direction of the Inspector General.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

  Office of the Under Secretary for Border and Transportation Security


                         SALARIES AND EXPENSES

       For necessary expenses of the Office of the Under Secretary 
     for Border and Transportation Security, as authorized by 
     subtitle A, title IV, of the Homeland Security Act of 2002 (6 
     U.S.C. 201 et seq.), $8,106,000.


    UNITED STATES VISITOR AND IMMIGRANT STATUS INDICATOR TECHNOLOGY

       For necessary expenses for the development of the United 
     States Visitor and Immigrant Status Indicator Technology 
     project, as authorized by section 110 of the Illegal 
     Immigration Reform and Immigration Responsibility Act of 1996 
     (8 U.S.C. 1221 note), $330,000,000, to remain available until 
     expended: Provided, That none of the funds appropriated under 
     this heading may be obligated for the United States Visitor 
     and Immigrant Status Indicator Technology project until the 
     Committees on Appropriations of the Senate and the House of 
     Representatives receive and approve a plan for expenditure 
     prepared by the Secretary of Homeland Security that: (1) 
     meets the capital planning and investment control review 
     requirements established by the Office of Management and 
     Budget, including Circular A-11, part 3; (2) complies with 
     the Department of Homeland Security enterprise information 
     systems architecture; (3) complies with the acquisition 
     rules, requirements, guidelines, and systems acquisition 
     management practices of the Federal Government; (4) is 
     reviewed and approved by the Department of Homeland Security 
     and the Office of Management and Budget; and (5) is reviewed 
     by the General Accounting Office.

                     Customs and Border Protection


                         SALARIES AND EXPENSES

       For necessary expenses for enforcement of laws relating to 
     border security, immigration, customs, and agricultural 
     inspections and regulatory activities related to plant and 
     animal imports; acquisition, lease, maintenance and operation 
     of aircraft; purchase and lease of up to 4,500 (3,935 for 
     replacement only) police-type vehicles; and contracting with 
     individuals for personal services abroad; $4,396,350,000; of 
     which $3,000,000 shall be derived from the Harbor Maintenance 
     Trust Fund for administrative expenses related to the 
     collection of the Harbor Maintenance Fee pursuant to Public 
     Law 103-182 and notwithstanding section 1511(e)(1) of Public 
     Law 107-296; of which not to exceed $40,000 shall be for 
     official reception and representation expenses; of which not 
     to exceed $100,800,000 shall remain available until September 
     30, 2005, for inspection technology; of which such sums as 
     become available in the Customs User Fee Account, except sums 
     subject to section 13031(f)(3) of the Consolidated Omnibus 
     Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)), 
     shall be derived from that account; of which not to exceed 
     $150,000 shall be available for payment for rental space in 
     connection with preclearance operations; of which not to 
     exceed $1,000,000 shall be for awards of compensation to 
     informants, to be accounted for solely under the certificate 
     of the Under Secretary for Border and Transportation 
     Security; and of which not to exceed $5,000,000 shall be 
     available for payments or advances arising out of contractual 
     or reimbursable agreements with State and local law 
     enforcement agencies while engaged in cooperative activities 
     related to immigration: Provided, That none of the funds 
     appropriated shall be available to compensate any employee 
     for overtime in an annual amount in excess of $30,000, except 
     that the Under Secretary for Border and Transportation 
     Security may exceed that amount as necessary for national 
     security purposes and in cases of immigration emergencies: 
     Provided further, That of the total amount provided, 
     $12,725,000 shall be for activities to enforce laws against 
     forced child labor in fiscal year 2004, of which not to 
     exceed $4,000,000 shall remain available until expended: 
     Provided further, That no funds shall be available for the 
     site acquisition, design, or construction of any Border 
     Patrol checkpoint in the Tucson sector: Provided further, 
     That the Border Patrol shall relocate its checkpoints in the 
     Tucson sector at least once every 7 days in a manner designed 
     to prevent persons subject to inspection from predicting the 
     location of any such checkpoint.


                        AUTOMATION MODERNIZATION

       For expenses for customs and border protection automated 
     systems, $441,122,000, to remain available until expended, of 
     which not less than $318,690,000 shall be for the development 
     of the Automated Commercial Environment: Provided, That none 
     of the funds appropriated under this heading may be obligated 
     for the Automated Commercial Environment until the Committees 
     on Appropriations of the Senate and the House of 
     Representatives receive and approve a plan for expenditure 
     prepared by the Under Secretary for Border and Transportation 
     Security that: (1) meets the capital planning and investment 
     control review requirements established by the Office of 
     Management and Budget, including Circular A-11, part 3; (2) 
     complies with the Bureau of Customs and Border Protection's 
     enterprise information systems architecture; (3) complies 
     with the acquisition rules, requirements, guidelines, and 
     systems acquisition management practices of the Federal 
     Government; (4) is reviewed and approved by the Bureau of 
     Customs and Border Protection Investment Review Board, the 
     Department of Homeland Security, and the Office of Management 
     and Budget; and (5) is reviewed by the General Accounting 
     Office.


                              CONSTRUCTION

       For necessary expenses to plan, construct, renovate, equip, 
     and maintain buildings and facilities necessary for the 
     administration and enforcement of laws relating to customs 
     and immigration, $90,363,000, to remain available until 
     expended.

[[Page 22672]]



                  Immigration and Customs Enforcement


                         SALARIES AND EXPENSES

                    (including rescission of funds)

       For necessary expenses for enforcement of immigration and 
     customs laws, detention and removals, and investigations; and 
     purchase and lease of up to 1,600 (1,450 for replacement 
     only) police-type vehicles; $2,151,050,000, of which not to 
     exceed $5,000,000 shall be available until expended for 
     conducting special operations pursuant to section 3131 of the 
     Customs Enforcement Act of 1986 (19 U.S.C. 2081); of which 
     not to exceed $15,000 shall be for official reception and 
     representation expenses; of which not to exceed $1,000,000 
     shall be for awards of compensation to informants, to be 
     accounted for solely under the certificate of the Under 
     Secretary for Border and Transportation Security; of which 
     not less than $100,000 shall be for promotion of public 
     awareness of the child pornography tipline; of which not less 
     than $200,000 shall be for Project Alert; and of which not to 
     exceed $5,000,000 shall be available to fund or reimburse 
     other Federal agencies for the costs associated with the 
     care, maintenance, and repatriation of smuggled illegal 
     aliens: Provided, That none of the funds appropriated shall 
     be available to compensate any employee for overtime in an 
     annual amount in excess of $30,000, except that the Under 
     Secretary for Border and Transportation Security may waive 
     that amount as necessary for national security purposes and 
     in cases of immigration emergencies: Provided further, That 
     of the total amount provided, $3,000,000 shall be for 
     activities to enforce laws against forced child labor in 
     fiscal year 2004, of which not to exceed $1,000,000 shall 
     remain available until expended.
         In addition, of the funds appropriated under this heading 
     in chapter 6 of title I of Public Law 108-11 (117 Stat. 583), 
     $54,000,000 are rescinded.


                          FEDERAL AIR MARSHALS

       For necessary expenses of the Federal air marshals, 
     $626,400,000, to remain available until expended.


                       Federal Protective Service

                          (transfer of funds)

       For necessary expenses for the operations of the Federal 
     Protective Service, $424,211,000 shall be transferred from 
     the revenues and collections in the General Services 
     Administration, Federal Buildings Fund.


                        Automation Modernization

       For expenses of immigration and customs enforcement 
     automated systems, $40,000,000, to remain available until 
     expended: Provided, That none of the funds appropriated under 
     this heading may be obligated for Atlas until the Committees 
     on Appropriations of the Senate and the House of 
     Representatives receive and approve a plan for expenditure 
     prepared by the Under Secretary for Border and Transportation 
     Security that: (1) meets the capital planning and investment 
     control review requirements established by the Office of 
     Management and Budget, including Circular A-11, part 3; (2) 
     complies with the Bureau of Immigration and Customs 
     enforcement enterprise information systems architecture; (3) 
     complies with the acquisition rules, requirements, 
     guidelines, and systems acquisition management practices of 
     the Federal Government; (4) is reviewed and approved by the 
     Bureau of Immigration and Customs Enforcement Investment 
     Review Board, the Department of Homeland Security, and the 
     Office of Management and Budget; and (5) is reviewed by the 
     General Accounting Office.


                AIR AND MARINE INTERDICTION, OPERATIONS,

                      MAINTENANCE, AND PROCUREMENT

       For necessary expenses for the operations, maintenance, and 
     procurement of marine vessels, aircraft, and other related 
     equipment of the air and marine program, including 
     operational training and mission-related travel, and rental 
     payments for facilities occupied by the air or marine 
     interdiction and demand reduction programs, the operations of 
     which include the following: the interdiction of narcotics 
     and other goods; the provision of support to Federal, State, 
     and local agencies in the enforcement or administration of 
     laws enforced by the Bureau of Immigration and Customs 
     Enforcement; and at the discretion of the Under Secretary for 
     Border and Transportation Security, the provision of 
     assistance to Federal, State, and local agencies in other law 
     enforcement and emergency humanitarian efforts, $210,200,000, 
     to remain available until expended: Provided, That no 
     aircraft or other related equipment, with the exception of 
     aircraft that are one of a kind and have been identified as 
     excess to Bureau of Immigration and Customs Enforcement 
     requirements and aircraft that have been damaged beyond 
     repair, shall be transferred to any other Federal agency, 
     department, or office outside of the Department of Homeland 
     Security during fiscal year 2004 without the prior approval 
     of the Committees on Appropriations of the Senate and the 
     House of Representatives.


                              CONSTRUCTION

       For necessary expenses to plan, construct, renovate, equip, 
     and maintain buildings and facilities necessary for the 
     administration and enforcement of the laws relating to 
     customs and immigration, $26,775,000, to remain available 
     until expended.

                 Transportation Security Administration


                           Aviation Security

       For necessary expenses of the Transportation Security 
     Administration related to providing civil aviation security 
     services pursuant to the Aviation and Transportation Security 
     Act (Public Law 107-71; 115 Stat. 597), $3,732,700,000, to 
     remain available until expended, of which not to exceed 
     $3,000 shall be for official reception and representation 
     expenses: Provided, That of the total amount provided under 
     this heading, not to exceed $1,805,700,000 shall be for 
     passenger screening activities; not to exceed $1,318,700,000 
     shall be for baggage screening activities; and not to exceed 
     $703,300,000 shall be for airport security direction and 
     enforcement presence: Provided further, That security service 
     fees authorized under section 44940 of title 49, United 
     States Code, shall be credited to this appropriation as 
     offsetting collections: Provided further, That none of the 
     funds appropriated or otherwise made available by this or any 
     other Act may be obligated or expended to carry out 
     provisions of section 44923(h) of title 49 United States 
     Code: Provided further, That the sum herein appropriated from 
     the General Fund shall be reduced on a dollar-for-dollar 
     basis as such offsetting collections are received during 
     fiscal year 2004, so as to result in a final fiscal year 
     appropriation from the General Fund estimated at not more 
     than $1,662,700,000: Provided further, That any security 
     service fees collected pursuant to section 118 of Public Law 
     107-71 in excess of the amount appropriated under this 
     heading shall be treated as offsetting collections in fiscal 
     year 2005: Provided further, That none of the funds in this 
     Act shall be used to recruit or hire personnel into the 
     Transportation Security Administration which would cause the 
     agency to exceed a staffing level of 45,000 full-time 
     equivalent screeners: Provided further, That of the total 
     amount provided under this heading, $250,000,000 shall be 
     available only for physical modification of commercial 
     service airports for the purpose of installing checked 
     baggage explosive detection systems and $150,000,000 shall be 
     available only for procurement of checked baggage explosive 
     detection systems.


                       Maritime and Land Security

       For necessary expenses of the Transportation Security 
     Administration related to maritime and land transportation 
     security grants and services pursuant to the Aviation and 
     Transportation Security Act (49 U.S.C. 40101 note), 
     $263,000,000, to remain available until September 30, 2005: 
     Provided, That of the total amount provided under this 
     heading, $125,000,000 shall be available for port security 
     grants, which shall be distributed under the same terms and 
     conditions as provided for under Public Law 107-117; and 
     $17,000,000 shall be available to execute grants, contracts, 
     and interagency agreements for the purpose of deploying 
     Operation Safe Commerce.


                              Intelligence

       For necessary expenses for intelligence activities pursuant 
     to the Aviation and Transportation Security Act (115 Stat. 
     597), $13,600,000.


                        Research and Development

       For necessary expenses for research and development related 
     to transportation security, $155,200,000, to remain available 
     until expended: Provided, That of the total amount provided 
     under this heading, $45,000,000 shall be available for the 
     research and development of explosive detection devices.


                             Administration

       For necessary administrative expenses of the Transportation 
     Security Administration to carry out the Aviation and 
     Transportation Security Act (115 Stat. 597), $427,200,000, to 
     remain available until September 30, 2005.

                       United States Coast Guard


                           Operating Expenses

                    (including rescission of funds)

       For necessary expenses for the operation and maintenance of 
     the Coast Guard not otherwise provided for; purchase or lease 
     of not to exceed twenty-five passenger motor vehicles for 
     replacement only; payments pursuant to section 156 of Public 
     Law 97-377 (42 U.S.C. 402 note); section 229(b) of the Social 
     Security Act (42 U.S.C. 429(b)); and recreation and welfare; 
     $4,713,055,000, of which $340,000,000 shall be for defense-
     related activities; of which $25,000,000 shall be derived 
     from the Oil Spill Liability Trust Fund; and of which not to 
     exceed $3,000 shall be for official reception and 
     representation expenses: Provided, That none of the funds 
     appropriated by this or any other Act shall be available for 
     administrative expenses in connection with shipping 
     commissioners in the United States: Provided further, That 
     none of the funds provided by this Act shall be available for 
     expenses incurred for yacht documentation under section 12109 
     of title 46, United States Code, except to the extent fees 
     are collected from yacht owners and credited to this 
     appropriation: Provided further, That notwithstanding section 
     1116(c) of title 10, United States Code, amounts made 
     available under this heading may be used to make payments 
     into the Department of Defense Medicare-Eligible Retiree 
     Health Care Fund for fiscal year 2004 under section 1116(a) 
     of such title.
       In addition, of the funds appropriated under this heading 
     in chapter 6 of title I of Public Law 108-11 (117 Stat. 583), 
     $71,000,000 are rescinded.


                ENVIRONMENTAL COMPLIANCE AND RESTORATION

       For necessary expenses to carry out the Coast Guard's 
     environmental compliance and restoration functions under 
     chapter 19 of title 14, United States Code, $17,000,000, to 
     remain available until expended.


                            RESERVE TRAINING

       For necessary expenses of the Coast Guard Reserve, as 
     authorized by law; maintenance and operation of facilities; 
     and supplies, equipment, and services; $95,000,000.


              ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

       For necessary expenses of acquisition, construction, 
     renovation, and improvement of aids

[[Page 22673]]

     to navigation, shore facilities, vessels, and aircraft, 
     including equipment related thereto; and maintenance, 
     rehabilitation, lease and operation of facilities and 
     equipment, as authorized by law; $967,200,000, of which 
     $23,500,000 shall be derived from the Oil Spill Liability 
     Trust Fund; of which $66,500,000 shall be available until 
     September 30, 2008, to acquire, repair, renovate, or improve 
     vessels, small boats, and related equipment; of which 
     $162,500,000 shall be available until September 30, 2006, for 
     other equipment, including $3,500,000 for defense message 
     system implementation and $1,000,000 for oil spill prevention 
     efforts under the Ports and Waterways Safety Systems program; 
     of which $70,000,000 shall be available for personnel 
     compensation and benefits and related costs; of which 
     $668,200,000 shall be available until September 30, 2008, for 
     the Integrated Deepwater Systems program: Provided, That the 
     Commandant of the Coast Guard is authorized to dispose of 
     surplus real property, by sale or lease, and the proceeds 
     shall be credited to this appropriation as offsetting 
     collections and shall be available until September 30, 2006, 
     only for Rescue 21: Provided further, That upon initial 
     submission to the Congress of the fiscal year 2005 
     President's budget, the Secretary of Homeland Security shall 
     transmit to the Congress a comprehensive capital investment 
     plan for the United States Coast Guard that includes funding 
     for each budget line item for fiscal years 2005 through 2009, 
     with total funding for each year of the plan constrained to 
     the funding targets for those years as estimated and approved 
     by the Office of Management and Budget.


                         Alteration of Bridges

       For necessary expenses for alteration or removal of 
     obstructive bridges, $19,250,000, to remain available until 
     expended: Provided, That in fiscal year 2004 and thereafter, 
     funds for bridge alteration projects conducted pursuant to 
     the Act of June 21, 1940 (33 U.S.C. 511 et seq.) shall be 
     available for such projects only to the extent that the 
     steel, iron, and manufactured products used in such projects 
     are produced in the United States, unless contrary to law or 
     international agreement, or unless the Commandant of the 
     Coast Guard determines such action to be inconsistent with 
     the public interest or the cost unreasonable.


              Research, Development, Test, and Evaluation

       For necessary expenses for applied scientific research, 
     development, test, and evaluation, and for maintenance, 
     rehabilitation, lease and operation of facilities and 
     equipment, as authorized by law; $15,000,000, to remain 
     available until expended, of which $3,500,000 shall be 
     derived from the Oil Spill Liability Trust Fund: Provided, 
     That there may be credited to and used for the purposes of 
     this appropriation funds received from State and local 
     governments, other public authorities, private sources, and 
     foreign countries, for expenses incurred for research, 
     development, testing, and evaluation.


                              Retired Pay

       For retired pay, including the payment of obligations 
     otherwise chargeable to lapsed appropriations for this 
     purpose, payments under the Retired Serviceman's Family 
     Protection and Survivor Benefits Plans, payment for career 
     status bonuses under the National Defense Authorization Act, 
     and payments for medical care of retired personnel and their 
     dependents under chapter 55 of title 10, United States Code, 
     $1,020,000,000.

                      United States Secret Service


                         Salaries and Expenses

       For necessary expenses of the United States Secret Service, 
     including purchase of not to exceed 730 vehicles for police-
     type use, of which 610 shall be for replacement only, and 
     hire of passenger motor vehicles; purchase of American-made 
     sidecar compatible motorcycles; hire of aircraft; services of 
     expert witnesses at such rates as may be determined by the 
     Director; rental of buildings in the District of Columbia, 
     and fencing, lighting, guard booths, and other facilities on 
     private or other property not in Government ownership or 
     control, as may be necessary to perform protective functions; 
     payment of per diem or subsistence allowances to employees 
     where a protective assignment during the actual day or days 
     of the visit of a protectee require an employee to work 16 
     hours per day or to remain overnight at his or her post of 
     duty; conduct of and participation in firearms matches; 
     presentation of awards; travel of Secret Service employees on 
     protective missions without regard to the limitations on such 
     expenditures in this or any other Act if approval is obtained 
     in advance from the Committees on Appropriations of the 
     Senate and the House of Representatives; research and 
     development; grants to conduct behavioral research in support 
     of protective research and operations; and payment in advance 
     for commercial accommodations as may be necessary to perform 
     protective functions; $1,137,280,000, of which not to exceed 
     $25,000 shall be for official reception and representation 
     expenses; of which not to exceed $100,000 shall be to provide 
     technical assistance and equipment to foreign law enforcement 
     organizations in counterfeit investigations; of which 
     $2,100,000 shall be for forensic and related support of 
     investigations of missing and exploited children; and of 
     which $5,000,000 shall be a grant for activities related to 
     the investigations of exploited children and shall remain 
     available until expended: Provided, That up to $18,000,000 
     provided for protective travel shall remain available until 
     September 30, 2005: Provided further, That in fiscal year 
     2004 and thereafter, subject to the reimbursement of actual 
     costs to this account, funds appropriated in this account 
     shall be available, at the discretion of the Director, for 
     the following: training United States Postal Service law 
     enforcement personnel and Postal police officers, training 
     Federal law enforcement officers, training State and local 
     government law enforcement officers on a space-available 
     basis, and training private sector security officials on a 
     space-available basis: Provided further, That the United 
     States Secret Service is authorized to obligate funds in 
     anticipation of reimbursements from agencies and entities, as 
     defined in section 105 of title 5, United States Code, 
     receiving training sponsored by the James J. Rowley Training 
     Center, except that total obligations at the end of the 
     fiscal year shall not exceed total budgetary resources 
     available under this heading at the end of the fiscal year: 
     Provided further, That in fiscal year 2004 and thereafter, 
     the James J. Rowley Training Center is authorized to provide 
     short-term medical services for students undergoing training 
     at the Center.


     Acquisition, Construction, Improvements, and Related Expenses

       For necessary expenses for acquisition, construction, 
     repair, alteration, and improvement of facilities, 
     $3,579,000, to remain available until expended.

                  TITLE III--PREPAREDNESS AND RECOVERY

                    Office for Domestic Preparedness


                        STATE AND LOCAL PROGRAMS

       For grants, contracts, cooperative agreements, and other 
     activities, including grants to State and local governments 
     for terrorism prevention activities, notwithstanding any 
     other provision of law, $3,287,000,000, which shall be 
     allocated as follows:
       (1) $1,700,000,000 for formula-based grants and 
     $500,000,000 for law enforcement terrorism prevention grants 
     pursuant to section 1014 of the USA PATRIOT Act of 2001 (42 
     U.S.C. 3714): Provided, That no funds shall be made available 
     to any State prior to the submission of an updated State plan 
     to the Office for Domestic Preparedness: Provided further, 
     That the application for grants shall be made available to 
     States within 30 days after enactment of this Act; that 
     States shall submit applications within 30 days after the 
     grant announcement; and that the Office for Domestic 
     Preparedness shall act within 15 days after receipt of an 
     application or receipt of an updated State plan, whichever is 
     later: Provided further, That each State shall obligate not 
     less than 80 percent of the total amount of the grant to 
     local governments within 60 days after the grant award; and
       (2) $725,000,000 for discretionary grants for use in high-
     threat, high-density urban areas, as determined by the 
     Secretary of Homeland Security: Provided, That no less than 
     80 percent of any grant to a State shall be made available by 
     the State to local governments within 60 days after the 
     receipt of the funds: Provided further, That section 
     1014(c)(3) of the USA PATRIOT Act of 2001 (42 U.S.C. 
     3714(c)(3)) shall not apply to these grants:
     Provided, That none of the funds appropriated under this 
     heading shall be used for the construction or renovation of 
     facilities: Provided further, That funds appropriated for law 
     enforcement terrorism prevention grants under paragraph (1) 
     and discretionary grants under paragraph (2) of this heading 
     shall be available for operational costs, to include 
     personnel overtime and overtime associated with Office for 
     Domestic Preparedness certified training, as needed.


                     FIREFIGHTER ASSISTANCE GRANTS

       For necessary expenses for programs authorized by section 
     33 of the Federal Fire Prevention and Control Act of 1974 (15 
     U.S.C. 2229), $750,000,000, to remain available until 
     September 30, 2005: Provided, That not to exceed 5 percent of 
     this amount shall be available for program administration.

                         Counterterrorism Fund

       For necessary expenses, as determined by the Secretary of 
     Homeland Security, to reimburse any Federal agency for the 
     costs of providing support to counter, investigate, or 
     prosecute unexpected threats or acts of terrorism, including 
     payment of rewards in connection with these activities, 
     $10,000,000, to remain available until expended: Provided, 
     That the Secretary shall notify the Committees on 
     Appropriations of the Senate and the House of Representatives 
     15 days prior to the obligation of any amount of these funds 
     in accordance with section 503 of this Act.

                  Emergency Preparedness and Response


 Office of the Under Secretary for Emergency Preparedness and Response

       For necessary expenses for the Office of the Under 
     Secretary for Emergency Preparedness and Response, as 
     authorized by section 502 of the Homeland Security Act of 
     2002 (6 U.S.C. 312), $3,450,000.


            Preparedness, Mitigation, Response, and Recovery

       For necessary expenses for preparedness, mitigation, 
     response, and recovery activities of the Emergency 
     Preparedness and Response Directorate, $225,000,000, 
     including activities authorized by the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011 et seq.), the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4001 et seq.), the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards 
     Reduction Act of 1977 (42 U.S.C. 7701 et seq.), the Federal 
     Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 et 
     seq.), the Defense Production Act of 1950 (50 U.S.C.

[[Page 22674]]

     App. 2061 et seq.), sections 107 and 303 of the National 
     Security Act of 1947 (50 U.S.C. 404, 405), Reorganization 
     Plan No. 3 of 1978 (5 U.S.C. App.), and the Homeland Security 
     Act of 2002 (6 U.S.C. 101 et seq.): Provided, That of the 
     total amount appropriated, $60,000,000 shall be for Urban 
     Search and Rescue Teams, of which not to exceed 3 percent may 
     be made available for administrative costs.


                 Administrative and Regional Operations

       For necessary expenses for administrative and regional 
     operations of the Emergency Preparedness and Response 
     Directorate, $167,000,000, including activities authorized by 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.), the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4001 et seq.), the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.), the 
     Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et 
     seq.), the Federal Fire Prevention and Control Act of 1974 
     (15 U.S.C. 2201 et seq.), the Defense Production Act of 1950 
     (50 U.S.C. App. 2061 et seq.), sections 107 and 303 of the 
     National Security Act of 1947 (50 U.S.C. 404, 405), 
     Reorganization Plan No. 3 of 1978 (5 U.S.C. App.), and the 
     Homeland Security Act of 2002 (6 U.S.C. 101 et seq.): 
     Provided, That not to exceed $3,000 shall be for official 
     reception and representation expenses.


                           Operating Expenses

                         (rescission of funds)

       Of the funds appropriated under this heading by chapter 6 
     of title I of Public Law 108-11 (117 Stat. 583), $3,000,000 
     are rescinded.


                         Public Health Programs

       For necessary expenses for countering potential biological, 
     disease, and chemical threats to civilian populations, 
     $484,000,000, including $400,000,000, to remain available 
     until expended, for the Strategic National Stockpile.


                       Biodefense Countermeasures

       For necessary expenses for securing medical countermeasures 
     against biological terror attacks, $5,593,000,000, to remain 
     available until September 30, 2013: Provided, That not to 
     exceed $3,418,000,000 may be obligated during fiscal years 
     2004 through 2008, of which not to exceed $890,000,000 may be 
     obligated during fiscal year 2004.


              RADIOLOGICAL EMERGENCY PREPAREDNESS PROGRAM

       The aggregate charges assessed during fiscal year 2004, as 
     authorized by the Energy and Water Development Appropriations 
     Act, 2001 (Public Law 106-377; 114 Stat. 1441A-59 et seq.), 
     shall not be less than 100 percent of the amounts anticipated 
     by the Department of Homeland Security necessary for its 
     radiological emergency preparedness program for the next 
     fiscal year: Provided, That the methodology for assessment 
     and collection of fees shall be fair and equitable; and shall 
     reflect costs of providing such services, including 
     administrative costs of collecting such fees: Provided 
     further, That fees received under this heading shall be 
     deposited in this account as offsetting collections and will 
     become available for authorized purposes on October 1, 2004, 
     and remain available until expended.


                            Disaster Relief

                     (including transfer of funds)

       For necessary expenses in carrying out the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), $1,800,000,000, to remain available 
     until expended; of which not to exceed $22,000,000 shall be 
     transferred to and merged with the appropriation for ``Office 
     of Inspector General'' for audits and investigations.


            Disaster Assistance Direct Loan Program Account

       For administrative expenses to carry out the direct loan 
     program, as authorized by section 319 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5162), $560,000: Provided, That gross obligations for 
     the principal amount of direct loans shall not exceed 
     $25,000,000: Provided further, That the cost of modifying 
     such loans shall be as defined in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a).


                 NATIONAL PRE-DISASTER MITIGATION FUND

       For a pre-disaster mitigation grant program pursuant to 
     title II of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5131 et seq.), 
     $150,000,000, to remain available until expended: Provided, 
     That grants made for pre-disaster mitigation shall be awarded 
     on a competitive basis subject to the criteria in section 
     203(g) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5133(g)): Provided 
     further, That, notwithstanding section 203(f) of that Act (42 
     U.S.C. 5133(f)), grant awards shall be made without reference 
     to State allocations, quotas, or other formula-based 
     allocation of funds: Provided further, That total 
     administrative costs shall not exceed 3 percent of the total 
     appropriation.


                      Flood Map Modernization Fund

       For necessary expenses pursuant to section 1360 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4101), 
     $200,000,000, and such additional sums as may be provided by 
     State and local governments or other political subdivisions 
     for cost-shared mapping activities under section 1360(f)(2) 
     of such Act, to remain available until expended: Provided, 
     That total administrative costs shall not exceed 3 percent of 
     the total appropriation.


                     National Flood Insurance Fund

                     (INCLUDING TRANSFER OF FUNDS)

       For activities under the National Flood Insurance Act of 
     1968 (42 U.S.C. 4011 et seq.) and the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4001 et seq.), not to 
     exceed $32,663,000 for salaries and expenses associated with 
     flood mitigation and flood insurance operations; and not to 
     exceed $77,809,000 for flood hazard mitigation, to remain 
     available until September 30, 2005, including up to 
     $20,000,000 for expenses under section 1366 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4104c), which amount 
     shall be available for transfer to the National Flood 
     Mitigation Fund until September 30, 2005, and which amount 
     shall be derived from offsetting collections assessed and 
     collected pursuant to section 1307 of that Act (42 U.S.C. 
     4014), and shall be retained and used for necessary expenses 
     under this heading: Provided, That in fiscal year 2004, no 
     funds in excess of: (1) $55,000,000 for operating expenses; 
     (2) $565,897,000 for agents' commissions and taxes; and (3) 
     $40,000,000 for interest on Treasury borrowings shall be 
     available from the National Flood Insurance Fund.


                     NATIONAL FLOOD MITIGATION FUND

                     (including TRANSFER OF FUNDS)

       Notwithstanding subparagraphs (B) and (C) of subsection 
     (b)(3), and subsection (f) of section 1366 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4104c), $20,000,000, 
     to remain available until September 30, 2005, for activities 
     designed to reduce the risk of flood damage to structures 
     pursuant to such Act, of which $20,000,000 shall be derived 
     from the National Flood Insurance Fund.


                EMERGENCY MANAGEMENT performance GRANTS

       For necessary expenses for emergency management performance 
     grants, as authorized by the National Flood Insurance Act of 
     1968 and the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4001 et seq.), the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.), the 
     Earthquake Hazards Reductions Act of 1977 (42 U.S.C. 7701 et 
     seq.), and Reorganization Plan No. 3 of 1978 (5 U.S.C. App.), 
     $180,000,000: Provided, That total administrative costs shall 
     not exceed 3 percent of the total appropriation.


                       Emergency Food and Shelter

       To carry out an emergency food and shelter program pursuant 
     to title III of the Stewart B. McKinney Homeless Assistance 
     Act (42 U.S.C. 11331 et seq.), $153,000,000, to remain 
     available until expended: Provided, That total administrative 
     costs shall not exceed 3.5 percent of the total 
     appropriation.


                        CERRO GRANDE FIRE CLAIMS

       For payment of claims under the Cerro Grande Fire 
     Assistance Act (Public Law 106-246; 114 Stat. 583), 
     $38,062,000, to remain available until expended: Provided, 
     That not to exceed 5 percent may be made available for 
     administrative costs.

TITLE IV--RESEARCH AND DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services

       For necessary expenses for citizenship and immigration 
     services, including international services, $236,126,000, of 
     which not to exceed $5,000 shall be for official reception 
     and representation expenses.

                Federal Law Enforcement Training Center


                         Salaries and Expenses

       For necessary expenses of the Federal Law Enforcement 
     Training Center, including materials and support costs of 
     Federal law enforcement basic training; purchase of not to 
     exceed 117 vehicles for police-type use and hire of passenger 
     motor vehicles; expenses for student athletic and related 
     activities; the conduct of and participation in firearms 
     matches and presentation of awards; public awareness and 
     enhancement of community support of law enforcement training; 
     room and board for student interns; a flat monthly 
     reimbursement to employees authorized to use personal cell 
     phones for official duties; and services as authorized by 
     section 3109 of title 5, United States Code; $155,423,000, of 
     which up to $36,174,000 for materials and support costs of 
     Federal law enforcement basic training shall remain available 
     until September 30, 2005; and of which not to exceed $12,000 
     shall be for official reception and representation expenses: 
     Provided, That in fiscal year 2004 and thereafter, the Center 
     is authorized to accept and use gifts of property, both real 
     and personal, and to accept services, for authorized 
     purposes: Provided further, That in fiscal year 2004 and 
     thereafter, the Center is authorized to accept detailees from 
     other Federal agencies, on a non-reimbursable basis, to staff 
     the accreditation function: Provided further, That in fiscal 
     year 2004 and thereafter, students attending training at any 
     Center site shall reside in on-Center or Center-provided 
     housing, insofar as available and in accordance with Center 
     policy: Provided further, That in fiscal year 2004 and 
     thereafter, funds appropriated in this account shall be 
     available, at the discretion of the Director, for the 
     following: training United States Postal Service law 
     enforcement personnel and Postal police officers; State and 
     local government law enforcement training on a space-
     available basis; training of foreign law enforcement 
     officials on a space-available basis with reimbursement of 
     actual costs to this appropriation, except that reimbursement 
     may be waived by the Secretary for law enforcement training 
     activities in foreign countries undertaken under section 801 
     of the Antiterrorism and Effective Death Penalty Act of 1996 
     (28 U.S.C. 509 note); training of private sector security 
     officials on a space-available basis with reimbursement of 
     actual costs to this appropriation; and travel expenses of 
     non-Federal personnel to attend course development meetings 
     and training sponsored by the Center: Provided further, That

[[Page 22675]]

     the Center is authorized to obligate funds in anticipation of 
     reimbursements from agencies receiving training sponsored by 
     the Center, except that total obligations at the end of the 
     fiscal year shall not exceed total budgetary resources 
     available at the end of the fiscal year: Provided further, 
     That in fiscal year 2004 and thereafter, the Center is 
     authorized to provide short-term medical services for 
     students undergoing training at the Center.


     Acquisition, Construction, Improvements, and Related Expenses

       For acquisition of necessary additional real property and 
     facilities, construction, and ongoing maintenance, facility 
     improvements, and related expenses of the Federal Law 
     Enforcement Training Center, $37,357,000, to remain available 
     until expended: Provided, That the Center is authorized to 
     accept reimbursement to this appropriation from government 
     agencies requesting the construction of special use 
     facilities.

           Information Analysis and Infrastructure Protection


                     management and administration

       For salaries and expenses of the immediate Office of the 
     Under Secretary for Information Analysis and Infrastructure 
     Protection and for management and administration of programs 
     and activities, as authorized by title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.), $125,000,000.


                      assessments and evaluations

       For expenses for information analysis and infrastructure 
     protection as authorized by title II of the Homeland Security 
     Act of 2002 (6 U.S.C. 121 et seq.), $714,300,000, to remain 
     available until September 30, 2005.

                         Science and Technology


                     management and administration

       For salaries and expenses of the immediate Office of the 
     Under Secretary for Science and Technology and for management 
     and administration of programs and activities, as authorized 
     by title III of the Homeland Security Act of 2002 (6 U.S.C. 
     181 et seq.), $44,168,000.


           Research, Development, Acquisition, and Operations

       For expenses of science and technology research, including 
     advanced research projects; development; test and evaluation; 
     acquisition; and operations, as authorized by title III of 
     the Homeland Security Act of 2002 (6 U.S.C. 181 et seq.), 
     $874,000,000, to remain available until expended.

                      TITLE V--GENERAL PROVISIONS


                     (including transfers of funds)

       Sec. 501. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 502. Subject to the requirements of section 503 of 
     this Act, the unexpended balances of prior appropriations 
     provided for activities in this Act may be transferred to 
     appropriation accounts for such activities established 
     pursuant to this Act: Provided, That balances so transferred 
     may be merged with funds in the applicable established 
     accounts and thereafter may be accounted for as one fund for 
     the same time period as originally enacted.
       Sec. 503. (a) None of the funds provided by this Act, 
     provided by previous appropriation Acts to the agencies in or 
     transferred to the Department of Homeland Security that 
     remain available for obligation or expenditure in fiscal year 
     2004, or provided from any accounts in the Treasury of the 
     United States derived by the collection of fees available to 
     the agencies funded by this Act, shall be available for 
     obligation or expenditure through a reprogramming of funds 
     that: (1) creates a new program; (2) eliminates a program, 
     project, or activity; (3) increases funds for any program, 
     project, or activity for which funds have been denied or 
     restricted by the Congress; or (4) proposes to use funds 
     directed for a specific activity by either the House or 
     Senate Committees on Appropriations for a different purpose, 
     unless both Committees on Appropriations of the Senate and 
     the House of Representatives are notified 15 days in advance 
     of such reprogramming of funds.
       (b) None of the funds provided by this Act, provided by 
     previous appropriation Acts to the agencies in or transferred 
     to the Department of Homeland Security that remain available 
     for obligation or expenditure in fiscal year 2004, or 
     provided from any accounts in the Treasury of the United 
     States derived by the collection of fees available to the 
     agencies funded by this Act, shall be available for 
     obligation or expenditure for programs, projects, or 
     activities through a reprogramming of funds in excess of 
     $5,000,000 or 10 percent, whichever is less, that: (1) 
     augments existing programs, projects, or activities; (2) 
     reduces by 10 percent funding for any existing program, 
     project, or activity, or numbers of personnel by 10 percent 
     as approved by the Congress; or (3) results from any general 
     savings from a reduction in personnel that would result in a 
     change in existing programs, projects, or activities as 
     approved by the Congress; unless the Committees on 
     Appropriations of the Senate and the House of Representatives 
     are notified 15 days in advance of such reprogramming of 
     funds.
       (c) Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Department of 
     Homeland Security by this Act or provided by previous 
     appropriation Acts may be transferred between such 
     appropriations, but no such appropriation, except as 
     otherwise specifically provided, shall be increased by more 
     than 10 percent by such transfers: Provided, That any 
     transfer under this section shall be treated as a 
     reprogramming of funds under subsection (b) of this section 
     and shall not be available for obligation unless the 
     Committees on Appropriations of the Senate and the House of 
     Representatives are notified 15 days in advance of such 
     transfer.
       Sec. 504. Except as otherwise specifically provided by law, 
     not to exceed 50 percent of unobligated balances remaining 
     available at the end of fiscal year 2004 from appropriations 
     for salaries and expenses for fiscal year 2004 in this Act 
     shall remain available through September 30, 2005, in the 
     account and for the purposes for which the appropriations 
     were provided: Provided, That prior to the obligation of such 
     funds, a request shall be submitted to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     for approval in accordance with section 503 of this Act.
       Sec. 505. In fiscal year 2004 and thereafter, unless 
     otherwise provided, funds may be used for purchase of 
     uniforms without regard to the general purchase price 
     limitation for the current fiscal year; purchase of insurance 
     for official motor vehicles operated in foreign countries; 
     entering into contracts with the Department of State to 
     furnish health and medical services to employees and their 
     dependents serving in foreign countries; services authorized 
     by section 3109 of title 5, United States Code; and the hire 
     and purchase of motor vehicles, as authorized by section 1343 
     of title 31, United States Code: Provided, That purchase for 
     police-type use of passenger vehicles may be made without 
     regard to the general purchase price limitation for the 
     current fiscal year.
       Sec. 506. The Federal Emergency Management Agency ``Working 
     Capital Fund'' shall be available to the Department of 
     Homeland Security, as authorized by sections 503 and 1517 of 
     the Homeland Security Act of 2002 (6 U.S.C. 313, 557), for 
     expenses and equipment necessary for maintenance and 
     operations of such administrative services as the Secretary 
     of Homeland Security determines may be performed more 
     advantageously as central services: Provided, That such fund 
     shall hereafter be known as the ``Department of Homeland 
     Security Working Capital Fund''.
       Sec. 507. The Federal Emergency Management Agency 
     ``Bequests and Gifts'' account shall be available to the 
     Department of Homeland Security, as authorized by sections 
     503 and 1517 of the Homeland Security Act of 2002 (6 U.S.C. 
     313, 557), for the Secretary of Homeland Security to accept, 
     hold, administer and utilize gifts and bequests, including 
     property, to facilitate the work of the Department of 
     Homeland Security: Provided, That such fund shall hereafter 
     be known as ``Department of Homeland Security, Gifts and 
     Donations'': Provided further, That any gift or bequest shall 
     be used in accordance with the terms of that gift or bequest 
     to the greatest extent practicable.
       Sec. 508. Funds made available by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414) during fiscal year 2004 until the 
     enactment of an Act authorizing intelligence activities for 
     fiscal year 2004.
       Sec. 509. The Federal Law Enforcement Training Center shall 
     establish an accrediting body, to include representatives 
     from the Federal law enforcement community and non-Federal 
     accreditation experts involved in law enforcement training, 
     to establish standards for measuring and assessing the 
     quality and effectiveness of Federal law enforcement training 
     programs, facilities, and instructors.
       Sec. 510. None of the funds in this Act may be used to make 
     a grant unless the Secretary of Homeland Security notifies 
     the Committees on Appropriations of the Senate and the House 
     of Representatives not less than 3 full business days before 
     any grant allocation, discretionary grant award, or letter of 
     intent totaling $1,000,000 or more is announced by the 
     Department or its directorates from: (1) any discretionary or 
     formula-based grant program of the Office for Domestic 
     Preparedness; (2) any letter of intent from the 
     Transportation Security Administration; or (3) any port 
     security grant: Provided, That no notification shall involve 
     funds that are not available for obligation.
       Sec. 511. Notwithstanding any other provision of law, no 
     agency shall purchase, construct, and/or lease any additional 
     facilities, except within or contiguous to existing 
     locations, to be used for the purpose of conducting Federal 
     law enforcement training without the advance approval of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives, except that the Federal Law Enforcement 
     Training Center is authorized to obtain the temporary use of 
     additional facilities by lease, contract, or other agreement 
     for training which cannot be accommodated in existing Center 
     facilities.
       Sec. 512. The Director of the Federal Law Enforcement 
     Training Center shall ensure that all training facilities 
     under the control of the Center are operated at optimal 
     capacity throughout the fiscal year.
       Sec. 513. For fiscal year 2004 and thereafter, none of the 
     funds appropriated or otherwise made available to the 
     Department of Homeland Security may be used for the 
     production of customs declarations that do not inquire 
     whether the passenger had been in the proximity of livestock.
       Sec. 514. For fiscal year 2004 and thereafter, none of the 
     funds appropriated or otherwise made available to the 
     Department of Homeland Security shall be available for any 
     activity or for paying the salary of any Government employee 
     where funding an activity or paying a

[[Page 22676]]

     salary to a Government employee would result in a 
     determination, regulation, or policy that would prohibit the 
     enforcement of section 307 of the Tariff Act of 1930 (19 
     U.S.C. 1307).
       Sec. 515. For fiscal year 2004 and thereafter, none of the 
     funds appropriated or otherwise made available to the 
     Department of Homeland Security may be used to allow--
       (1) the importation into the United States of any good, 
     ware, article, or merchandise mined, produced, or 
     manufactured by forced or indentured child labor, as 
     determined under section 307 of the Tariff Act of 1930 (19 
     U.S.C. 1307); or
       (2) the release into the United States of any good, ware, 
     article, or merchandise on which there is in effect a 
     detention order under such section 307 on the basis that the 
     good, ware, article, or merchandise may have been mined, 
     produced, or manufactured by forced or indentured child 
     labor.
       Sec. 516. None of the funds appropriated or otherwise made 
     available by this Act may be used for expenses of any 
     construction, repair, alteration, and acquisition project for 
     which a prospectus, if required by the Public Buildings Act 
     of 1959, has not been approved, except that necessary funds 
     may be expended for each project for required expenses for 
     the development of a proposed prospectus.
       Sec. 517. None of the funds appropriated or otherwise made 
     available by this Act shall be used to pursue or adopt 
     guidelines or regulations requiring airport sponsors to 
     provide to the Transportation Security Administration without 
     cost building construction, maintenance, utilities and 
     expenses, or space in airport sponsor-owned buildings for 
     services relating to aviation security: Provided, That the 
     prohibition of funds in this section does not apply to--
       (1) negotiations between the agency and airport sponsors to 
     achieve agreement on ``below-market'' rates for these items, 
     or
       (2) space for necessary security checkpoints.
       Sec. 518. None of the funds in this Act may be used in 
     contravention of the applicable provisions of the Buy 
     American Act (41 U.S.C. 10a et seq.).
       Sec. 519. (a) None of the funds provided by this or 
     previous appropriations Acts may be obligated for deployment 
     or implementation, on other than a test basis, of the 
     Computer Assisted Passenger Prescreening System (CAPPS II) 
     that the Transportation Security Administration (TSA) plans 
     to utilize to screen aviation passengers, until the General 
     Accounting Office has reported to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     that--
       (1) a system of due process exists whereby aviation 
     passengers determined to pose a threat and either delayed or 
     prohibited from boarding their scheduled flights by the TSA 
     may appeal such decision and correct erroneous information 
     contained in CAPPS II;
       (2) the underlying error rate of the government and private 
     data bases that will be used both to establish identity and 
     assign a risk level to a passenger will not produce a large 
     number of false positives that will result in a significant 
     number of passengers being treated mistakenly or security 
     resources being diverted;
       (3) the TSA has stress-tested and demonstrated the efficacy 
     and accuracy of all search tools in CAPPS II and has 
     demonstrated that CAPPS II can make an accurate predictive 
     assessment of those passengers who may constitute a threat to 
     aviation;
       (4) the Secretary of Homeland Security has established an 
     internal oversight board to monitor the manner in which CAPPS 
     II is being developed and prepared;
       (5) the TSA has built in sufficient operational safeguards 
     to reduce the opportunities for abuse;
       (6) substantial security measures are in place to protect 
     CAPPS II from unauthorized access by hackers or other 
     intruders;
       (7) the TSA has adopted policies establishing effective 
     oversight of the use and operation of the system; and
       (8) there are no specific privacy concerns with the 
     technological architecture of the system.
       (b) During the testing phase permitted by paragraph (a) of 
     this section, no information gathered from passengers, 
     foreign or domestic air carriers, or reservation systems may 
     be used to screen aviation passengers, or delay or deny 
     boarding to such passengers.
       (c) The General Accounting Office shall submit the report 
     required under paragraph (a) of this section no later than 
     February 15, 2004.
       Sec. 520. For fiscal year 2004 and thereafter, the 
     Secretary of Homeland Security shall charge reasonable fees 
     for providing credentialing and background investigations in 
     the field of transportation: Provided, That the establishment 
     and collection of fees shall be subject to the following 
     requirements:
       (1) such fees, in the aggregate, shall not exceed the costs 
     incurred by the Department of Homeland Security associated 
     with providing the credential or performing the background 
     record checks;
       (2) the Secretary shall charge fees in amounts that are 
     reasonably related to the costs of providing services in 
     connection with the activity or item for which the fee is 
     charged;
       (3) a fee may not be collected except to the extent such 
     fee will be expended to pay for the costs of conducting or 
     obtaining a criminal history record check and a review of 
     available law enforcement databases and commercial databases 
     and records of other governmental and international agencies; 
     reviewing and adjudicating requests for waiver and appeals of 
     agency decisions with respect to providing the credential, 
     performing the background record check, and denying requests 
     for waiver and appeals; and any other costs related to 
     providing the credential or performing the background record 
     check; and
       (4) any fee collected shall be available for expenditure 
     only to pay the costs incurred in providing services in 
     connection with the activity or item for which the fee is 
     charged and shall remain available until expended.
       Sec. 521. The Secretary of Homeland Security is directed to 
     research, develop, and procure certified systems to inspect 
     and screen air cargo on passenger aircraft at the earliest 
     date possible: Provided, That until such technology is 
     procured and installed, the Secretary shall take all possible 
     actions to enhance the known shipper program to prohibit 
     high-risk cargo from being transported on passenger aircraft.
       This Act may be cited as the ``Department of Homeland 
     Security Appropriations Act, 2004''.
       And the Senate agree to the same.

     Harold Rogers,
     C. W. Bill Young,
     Frank R. Wolf,
     Zach Wamp,
     Tom Latham,
     Jo Ann Emerson,
     Kay Granger,
     John E. Sweeney,
     Don Sherwood,
     Martin Olav Sabo,
     David E. Price,
     Jose E. Serrano,
     Lucille Roybal-Allard,
     Marion Berry,
     Alan B. Mollohan,
                                Managers on the Part of the House.

     Thad Cochran,
     Ted Stevens,
     Arlen Specter,
     Pete V. Domenici,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Ben Nighthorse Campbell,
     Larry Craig,
     Robert C. Byrd,
     Daniel K. Inouye,
     Ernest F. Hollings,
     Patrick J. Leahy,
     Tom Harkin,
     Barbara A. Mikulski,
     Herb Kohl,
     Patty Murray,
                               Managers on the Part of the Senate.

                      JOINT EXPLANATORY STATEMENT

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2555), making 
     appropriations for the Department of Homeland Security for 
     the fiscal year ending September 30, 2004, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effects of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.
       Throughout the accompanying explanatory statement, the 
     managers refer to the Committee and the Committees on 
     Appropriations. Unless otherwise noted, in both instances, 
     the managers are referring to the House Subcommittee on 
     Homeland Security and the Senate Subcommittee on Homeland 
     Security.
       The language and allocations contained in House Report 108-
     169 and Senate Report 108-86 should be complied with unless 
     specifically addressed to the contrary in the conference 
     report and statement of managers. The statement of managers, 
     while repeating some report language for emphasis, does not 
     intend to negate the language referred to above unless 
     expressly provided herein. In cases where both the House and 
     Senate reports address a particular issue not specifically 
     addressed in the conference report or joint statement of 
     managers, the conferees have determined that the House report 
     and Senate report are not inconsistent and are to be 
     interpreted accordingly.
       In cases where the House or Senate report directs the 
     submission of a report, such report is to be submitted to 
     both the House and Senate Committees on Appropriations. 
     Further, in a number of instances, House Report 108-169 and 
     Senate Report 108-86 direct agencies to report to the 
     Committees by specific dates that have now passed. In those 
     instances, and unless alternative dates are provided in the 
     accompanying explanatory statement, agencies are directed to 
     provide these reports to the House and Senate Committees on 
     Appropriations no later than November 14, 2003.

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

            Office of the Secretary and Executive Management

       The conferees agree to provide $80,794,000 instead of 
     $78,975,000 as proposed by the House and $83,653,000 as 
     proposed by the Senate. Within the funds provided for the 
     Office of the Secretary and Executive Management, travel 
     expenses may not exceed $2,575,000. The conferees agree to 
     provide an additional $490,000 to partially offset the costs 
     of the

[[Page 22677]]

     fiscal year 2004 4.1 percent pay adjustment. Funding shall be 
     allocated as follows:

Immediate Office of the Secretary............................$2,139,000
Immediate Office of the Deputy Secretary......................1,116,000
Office of Security...........................................19,899,000
Chief of Staff................................................5,047,000
Executive Secretary...........................................5,239,000
Special Assistant to the Secretary/Private Sector.............3,995,000
Office of National Capital Region (NCR) Coordinator.............560,000
Office of State and Local Government Coordination.............3,095,000
Office of International Affairs...............................1,165,000
Office of Public Affairs......................................8,168,000
Office of Legislative Affairs.................................5,907,000
Office of General Counsel.....................................8,696,000
Office of Civil Rights and Liberties.........................13,027,000
Citizenship and Immigration Services Ombudsman................1,243,000
Homeland Security Advisory Committee............................726,000
Privacy Officer.................................................772,000
                                                       ________________
                                                       
    Total....................................................80,794,000


                 reception and representation expenses

       The conferees have provided $40,000 for reception and 
     representation expenses for the Office of the Secretary and 
     Executive Management, as proposed by the House, instead of 
     $100,000 as proposed by the Senate in a general provision. 
     Separate reception and representation allowances have been 
     provided directly to other departmental agencies.
       The conferees have not included bill language, proposed by 
     the House, permitting the Secretary to use up to $2,000,000 
     for unforeseen emergencies.


                         budget justifications

       The conferees direct the Department to submit its fiscal 
     year 2005 budget justifications on the first Monday in 
     February, concurrent with official submission of the 
     President's budget to the Congress. These justifications 
     should include detailed data and explanatory statements in 
     support of the appropriations requests, including tables that 
     detail each agency's programs, projects, and activities for 
     fiscal years 2004 and 2005. The budget justifications should 
     also include a table identifying the last year that 
     authorizing legislation was provided by Congress for each 
     program, project, or activity; the amount of the 
     authorization; and the appropriation in the last year of the 
     authorization.


                     monthly reporting requirements

       The conferees agree with House report language directing 
     the Department to submit to the Committees on Appropriations 
     a monthly budget execution report showing the status of 
     obligations and costs for all components of the Department.


                               detailees

       The conferees direct the Department to report for fiscal 
     year 2003 and for the first quarter of fiscal year 2004 to 
     the Committees on Appropriations by January 1, 2004, by 
     agency on the number of detailees in the Department as well 
     as those detailed to other executive and legislative 
     agencies; originating agency; salary; length of detail 
     (including beginning and end dates); and purpose of the 
     detail.


                  protection of classified information

       The conferees agree with House report language regarding 
     proper storage and security of classified information and 
     materials, and, within available funds for the Office of 
     Security, up to $3,000,000 shall be made available for 
     initial purchase and installation of locks meeting or 
     exceeding federal specification FF-L-2740-A. Consistent with 
     House report language, the conferees expect a complete 
     assessment of needs to be delivered to the Committees on 
     Appropriations no later than December 15, 2003.


            countermeasures against shoulder-fired missiles

       The Secretary shall report to the Committees on 
     Appropriations no later than March 1, 2004, in classified 
     form, on the progress made to develop countermeasures for 
     commercial aircraft against shoulder-fired missile systems, 
     including cost and time schedules for developing and 
     deploying such countermeasures, a vulnerability assessment of 
     category X and category 1 airports from the threat of 
     shoulder-fired missile systems, and the interim measures 
     being taken to address the threat.


                         asset forfeiture funds

       The conferees note that asset forfeiture funds have played 
     a vital role in support of law enforcement and homeland 
     security operations. The conferees also are aware that new 
     legal and/or administrative structures are under 
     consideration for the operation of the current Treasury and 
     Justice Department forfeiture funds. Because a number of the 
     Department's law enforcement agencies rely on the use of 
     assets from these funds for on-going investigations and other 
     operations, the conferees direct the Department to notify the 
     Committees on Appropriations prior to any changes in the 
     existing structure of these funds or changes to the 
     distribution of the assets from these funds.

              Office of the Under Secretary for Management

       The conferees agree to provide $130,983,000 instead of 
     $116,139,000 as proposed by the House and $167,521,000 as 
     proposed by the Senate. Within the funds provided for the 
     Office of the Under Secretary for Management, travel expenses 
     may not exceed $602,000. Due to lack of details, the 
     conferees have not provided funding for Strategic 
     Initiatives. The conferees agree to provide an additional 
     $333,000 to partially offset the costs of the fiscal year 
     2004 4.1 percent pay adjustment. Funding shall be allocated 
     as follows:

Under Secretary for Management...............................$1,278,000
Office of Chief Financial Officer............................10,592,000
Office of Procurement.........................................6,171,000
Office of Human Resources.....................................6,743,000
Office of Chief Information Officer..........................60,496,000
Office of Administration.....................................25,703,000
Headquarters.................................................20,000,000
                                                       ________________
                                                       
    Total...................................................130,983,000

                       Standardization of Systems

       The conferees expect that standardization and savings will 
     be realized through consolidation of support operations, 
     personnel, and systems within the Department of Homeland 
     Security. The conferees direct the Department to undertake 
     these consolidation efforts in such areas as administration, 
     finance and accounting, and procurement.

                             command center

       The conferees have fully funded the command center under 
     the Information Analysis and Infrastructure Protection 
     management and administration account. No funding is included 
     for this center under the Chief Information Officer, as 
     proposed by both the House and Senate.


                            DHS Headquarters

       The conferees agree to provide $20,000,000 for necessary 
     renovations at the Nebraska Avenue Complex instead of 
     $30,000,000 as proposed by the Senate and no funding as 
     proposed by the House. The conferees include a new general 
     provision (Section 516) prohibiting the expenditure of funds 
     absent an approved prospectus, if required by the Public 
     Buildings Act of 1959. Funding is provided for evaluations 
     and planning; security upgrades; renovations and improvements 
     of buildings 1, 4, 5, 18, 19, and 100; SCIF construction in 
     building 5; and Navy relocation costs.

                 Department-Wide Technology Investments

       The conferees agree to provide $185,000,000 as proposed by 
     the Senate instead of $206,000,000 as proposed by the House. 
     Funds are available until expended. Statutory language 
     proposed by the House has been included prohibiting the use 
     of funds to support or supplement the appropriations provided 
     for the United States Visitor and Immigrant Status Indicator 
     Technology project or the Automated Commercial Environment 
     system.
       The conference agreement includes $72,506,000 for 
     information technology services; $31,000,000 for security 
     activities; $100,000,000 for wireless programs; and 
     $2,494,000 for federal salaries and expenses. The conference 
     agreement also includes the Senate proposal to use 
     $21,000,000 transferred to the Department of Homeland 
     Security from the Department of Justice Working Capital Fund 
     for enterprise architecture and the information and 
     evaluation program. Full funding has been provided for 
     consolidation of the Department's watch lists.
       The Department is to report to the Committees on 
     Appropriations by December 15, 2003, on how the federal 
     wireless program will operate with the state and local 
     communications systems that are being implemented 
     concurrently, and to identify the level of funding provided 
     to all Departmental components for mobile radios.
       The Department is to report to the Committees on 
     Appropriations by December 15, 2003, on the status of the 
     Department's efforts to: complete an inventory of the 
     Department's entire information technology structure; devise 
     and deploy a comprehensive enterprise architecture that 
     promotes interoperability of homeland security information 
     systems, including communications systems, for agencies 
     within and outside the Department; consolidate multiple 
     overlapping and inconsistent terrorist watch lists; and align 
     common information technology investments within the 
     Department and between the Department and other federal, 
     state, and local agencies responsible for homeland security 
     to minimize inconsistent and duplicative acquisitions and 
     expenditures.

                      Office of Inspector General

       The conferees agree to provide $58,664,000 instead of 
     $58,118,000 as proposed by both the House and the Senate; and 
     $22,000,000 is transferred from the Emergency Preparedness 
     and Response Disaster Relief Fund for a total of $80,664,000 
     for the Office of Inspector General. The conferees agree to 
     provide an additional $546,000 to partially offset the costs 
     of the fiscal year 2004 4.1 percent pay adjustment.
       Bill language is included to allow the Inspector General to 
     use not to exceed $100,000

[[Page 22678]]

     for unforeseen emergencies, including the payment of 
     informants, as proposed by the Senate instead of $1,000,000 
     as proposed by the House.
       The conferees direct the Inspector General to provide all 
     audit reports requested by the Committees on Appropriations 
     to the Committees no less than 15 days prior to public 
     distribution of such reports.

          TITLE II--SECURITY, ENFORCEMENT, AND INVESTIGATIONS

  Office of the Under Secretary for Border and Transportation Security


                         SALARIES AND EXPENSES

       The conferees agree to provide $8,106,000 as proposed by 
     the House instead of $8,842,000 as proposed by the Senate. 
     Within the Office of the Under Secretary for Border and 
     Transportation Security, travel may not exceed $418,000.


           Administrative Support and Interagency Cooperation

       The conferees recognize that there will continue to be 
     significant requirements for support between agencies within 
     the Directorate of Border and Transportation Security, as 
     well as other Departmental agencies, notably the Bureau of 
     Citizenship and Immigration Services, as transition 
     continues. This may include shared services, modernizing and 
     supporting shared automated systems, shared infrastructure, 
     access to databases, and other forms of support. The 
     conferees direct that the Under Secretary and all bureaus 
     collaborate to ensure that the needs of frontline employees 
     are being met, regardless of which bureau is providing legacy 
     system support or administrative infrastructure.

  United States Visitor and Immigrant Status Indicator Technology (US 
                                 VISIT)

       The conferees agree to provide $330,000,000 instead of 
     $350,000,000 as proposed by the House and $380,000,000 as 
     proposed by the Senate. Funds are available until expended.


        US VISIT Planning, Expenditure and Oversight Information

       The conferees are concerned about the progress in planning 
     and deploying the US VISIT system. Given the priority of US 
     VISIT, the conferees expect that some expenditure plans would 
     be completed and submitted to the Committees on 
     Appropriations shortly after appropriations become available, 
     and not held up until late in the fiscal year as has been 
     true in the past.
       The conferees expect to be provided additional information 
     about overall program characteristics, as well as greater 
     details in specific expenditure plans. Overall, information 
     needs to be provided showing the context in which US VISIT is 
     being developed, to include, but not be limited to: an 
     estimate of overall costs; a comprehensive explanation of the 
     exit control business process on which planning is based; 
     staffing plans being developed for entrance and exit control 
     activity; and explanations of how US VISIT information will 
     be made available to the Bureau of Immigration and Customs 
     Enforcement and other law enforcement and homeland security 
     agencies. In addition, expenditure plans shall provide a 
     greater level of detail, including: annual cost, schedule, 
     and performance milestones; outyear costs; and related 
     impacts on staffing, infrastructure, and communications 
     costs.
       The conferees further direct DHS to submit its privacy 
     policy to protect information held by US VISIT to the 
     Committees on Appropriations not later than 45 days after 
     enactment of the Act.
       To assist the Committees in their oversight of US VISIT, 
     the conferees direct DHS to submit detailed monthly reports 
     on the planned and actual deployment of US VISIT entry and 
     exit systems and equipment at airports and seaports. The 
     first report shall be submitted not later than October 15, 
     2003, and shall include information on deployment through 
     September 2003, as well as for the remainder of fiscal year 
     2004.


                          us visit biometrics

       The conferees believe that the success of US VISIT depends 
     on the effective integration of biometrics into its systems 
     and operations. The biometric infrastructure being built must 
     be a viable long-term solution fully interoperable with the 
     FBI Integrated Automated Fingerprint Identification System 
     that meets biometric standards of the National Institute of 
     Standards and Technology. As stated in Public Law 108-7, 
     procurement decisions for the overall US VISIT program should 
     ensure full and open competition.
       An example of a technology with great capacity for storing 
     biometric information is optical memory, now used by the 
     Department for permanent resident cards and by the State 
     Department for border crossing cards. The conferees encourage 
     the Department to ensure that all technologies are considered 
     as it proceeds with US VISIT development and as the State 
     Department moves forward with the next generation of travel 
     documents and credentials. The conferees further encourage 
     the Department to ensure that it coordinates with other 
     federal agencies engaged in such technology development and 
     that such technologies are developed to comply with current 
     and planned international civil aviation standards.

                     Customs and Border Protection


                         salaries and expenses

       The conferees agree to provide $4,396,350,000 for the 
     Bureau of Customs and Border Protection (CBP) instead of 
     $4,587,600,000 as proposed by the House and $4,369,000,000 as 
     proposed by the Senate. This includes: $18,000,000 to cover 
     the costs of 2003 pay increases and partially restore 
     unspecified administrative reductions taken to establish the 
     Department; $4,750,000 for textile transshipment enforcement, 
     as authorized in the Trade Act of 2002; $12,725,000 to 
     enforce laws relating to forced or indentured child labor, of 
     which $4,000,000 is available until expended; $63,800,000 for 
     non-intrusive inspection technology; $6,700,000 for 
     additional staffing needed to support new inspection 
     technology and implement wireless personal data assistant 
     database access; $41,000,000 for an additional 570 Border 
     Patrol Agents; $9,000,000 for additional inspectors; a 
     reduction to correct for $18,000,000 that had been double-
     counted in the budget request; and an additional $23,200,000 
     to partially offset the costs of the fiscal year 2004 4.1 
     percent pay adjustment. The appropriation also reflects 
     reductions that correspond to realignment of construction 
     funding into separate appropriations, and $128,000,000 for 
     administrative support for investigations and air and marine 
     operations into the Bureau of Immigration and Customs 
     Enforcement appropriation. Funding requested for Plum Island 
     is provided in the Science and Technology biological 
     countermeasures program. Further details on the allocation of 
     funds can be found in the conference funding tables included 
     in this report.
       The conferees are aware that the Department is conducting a 
     comprehensive review of administrative and other mission 
     responsibilities, particularly as they affect CBP and other 
     agencies that have inherited multiple legacy missions. While 
     funding provided by this conference agreement is based on the 
     best possible information available, the conferees understand 
     there may be a need to adjust funding to conform to the 
     decisions resulting from the review.


                            border staffing

       The conferees support adequate staffing to secure the 
     nation's ports and borders, and have included a total of 
     $76,300,000 for increased deployment of inspection 
     technology, the Customs-Trade Partnership Against Terrorism, 
     canine enforcement officers, CBP inspectors and Border Patrol 
     Agents.
       The conferees recognize the effort required to integrate 
     these increases while continuing to adjust the structure and 
     organization of a new, consolidated bureau. In order to 
     assess the status of current and projected staffing, the 
     conferees direct CBP to submit to the Committees on 
     Appropriations not later than December 1, 2003, a detailed 
     staffing plan including: actual on-board personnel for fiscal 
     year 2003; projected staffing for fiscal year 2004; positions 
     authorized but vacant; full-time, part-time, and temporary 
     positions funded through direct appropriations; full-time, 
     part-time and temporary fee-funded positions; and staffing at 
     each port of entry and border area. The report shall also 
     identify the new positions funded by this Act. The conferees 
     expect this staffing plan to be coordinated and consistent 
     with the staffing assumptions included in the CBP 
     construction master plan.


      non-intrusive inspection and radiation detection technology

       The conferees are aware of several instances where 
     improvements can be made in evaluating new technology for 
     cargo screening and radiation detection. For example, 
     completion of the demonstration project for pulsed fast 
     neutron analysis at the Ysleta border crossing has been 
     significantly delayed. The conferees direct CBP to accelerate 
     its efforts to complete this test and report its findings to 
     the Committees on Appropriations not later than August 1, 
     2004. In another example, the conferees note that $3,000,000 
     was provided to CBP in the fiscal year 2003 appropriation to 
     evaluate and prototype next generation technology to screen 
     and detect contraband, explosives, radioactive materials, and 
     potential chemical and biological weapons. However, it 
     appears that a significant share of this funding is instead 
     being used to test modifications to existing detection 
     technology.
       The conferees strongly support Departmental coordination of 
     efforts by CBP and other DHS agencies to test and invest in 
     technology for inspection, detection and monitoring for 
     weapons of mass destruction, and integrate such technology in 
     all operations. The conferees direct both CBP and DHS to 
     ensure that all potential candidate technologies are 
     permitted to compete and be fairly evaluated as part of any 
     acquisition decisions for inspection and radiation detection 
     technology.


                        anti-dumping enforcement

       The conferees have ensured that this account includes 
     sufficient funds to enforce the anti-dumping authority 
     contained in section 764 of the Tariff Act of 1930 (19 U.S.C. 
     1675c). Additionally, the conferees are aware of the 
     Department of the Treasury Office of Inspector General audit 
     report (OIG003-085), ``Customs Needs to Improve Compliance 
     with CDSOA (Continued Dumping and Subsidy

[[Page 22679]]

     Offset Act of 2000)'' and expect the CBP to fully comply with 
     the recommendations made in that report.


                  steel imports trade law enforcement

       The conferees fully support the language on enforcement of 
     U.S. trade laws regarding steel imports contained in House 
     Report 108-169. The conferees note that the report submitted 
     May 30, 2003, on this issue did not contain the requested 
     data on the types and value of illegal imports seized and 
     penalties imposed. The conferees direct the CBP to submit a 
     revised report by April 20, 2004, that includes all of the 
     information requested.


                       offsetting fee collections

       The conferees are concerned about the financial health of 
     the Immigration Inspection User Fee, COBRA passenger 
     inspection fees, and the Land Border Inspection Fee, all of 
     which have been affected by declining travel volume. The 
     conferees direct the Department and CBP to manage programs 
     within the levels of actual receipts, and to adjust Land 
     Border Inspection fees quickly to ensure adequate revenue. 
     The conferees direct CBP to ensure that fee revenues are used 
     first to fully fund base operations and adjustments, as 
     supported in justification materials provided to Congress, 
     before undertaking any new initiatives.


                        automation modernization

       The conferees agree to provide $441,122,000, as proposed by 
     the Senate, instead of $493,727,000 as proposed by the House. 
     Funds are available until expended. This includes funding as 
     requested for the Automated Commercial Environment, the 
     Integrated Trade Data System, and the costs of the legacy 
     Automated Commercial System.


                              construction

       The conferees agree to provide $90,363,000 as proposed by 
     the Senate, instead of $95,552,000 funded within the CBP 
     Salaries and Expenses appropriation as proposed by the House. 
     Funds are available until expended. The conferees direct CBP 
     to review its nationwide priority list for construction 
     funding for the Border Patrol, and provide a detailed plan of 
     its intended use of this funding within 45 days of enactment 
     of this Act. In addition, the conferees direct CBP to submit 
     an updated construction master plan to the Committees on 
     Appropriations not later than July 1, 2004.


                       conference funding levels


                                                                 Amount
Customs and Border Protection:
  Salaries and Expenses..................................$4,396,350,000
  Automation Modernization..................................441,122,000
  Construction (Border Patrol)...............................90,363,000
                                                       ________________
                                                       
    Subtotal, Direct Appropriations.......................4,927,835,000
                                                       ================

                                            Offsetting Fee Collections:
    Immigration user fee..................................(509,000,000)
    Immigration examinations fund...................................(0)
    Immigration enforcement fines...........................(6,000,000)
    Land border inspection fund............................(28,000,000)
    COBRA.................................................(302,000,000)
                                                       ________________
                                                       
      Subtotal, Offsetting Fee Collections................(845,000,000)
                                                       ================

      Total, Customs and Border Protection..............(5,772,835,000)

                  Immigration and Customs Enforcement


                         salaries and expenses

                    (including rescission of funds)

       The conferees agree to provide $2,151,050,000 for the 
     Bureau of Immigration and Customs Enforcement (ICE) instead 
     of $2,030,000,000 as proposed by the House and $2,180,000,000 
     as proposed by the Senate. This includes: $7,500,000 to cover 
     the costs of annualizing 2003 pay increases and to partially 
     restore unspecified administrative reductions taken to 
     establish the Department; $4,750,000 for textile 
     transshipment enforcement, as authorized in the Trade Act of 
     2002; $3,000,000 to enforce laws relating to forced or 
     indentured child labor, of which $1,000,000 is available 
     until expended; $6,700,000 in new funding for additional 
     investigators, particularly for compliance monitoring; 
     $5,400,000 for personnel costs associated with establishing a 
     Northern Border airwing; and $6,400,000 for the Intellectual 
     Property Rights Center.
       The funding level reflects realignment of funding for 
     construction into a separate construction appropriation, and 
     realignment of $128,000,000 for administrative support for 
     investigations and air and marine operations into ICE. The 
     conferees agree to provide an additional $15,000,000 to 
     partially offset the costs of the fiscal year 2004 4.1 
     percent pay adjustment. The conferees continue to support 
     alternatives to detention and to providing legal orientation 
     to persons in detention prior to their first hearing before 
     an immigration judge, and expect that these programs will be 
     funded at the same level as the previous fiscal year. Further 
     details on funding allocations can be found in the conference 
     funding tables included in this report.
       The conferees are aware that the Department is conducting a 
     comprehensive review of administrative and other mission 
     responsibilities, particularly as they affect ICE and other 
     agencies that have inherited multiple legacy missions. While 
     funding provided by this conference agreement is based on the 
     best possible information available, the conferees understand 
     there may be a need to adjust funding to conform to the 
     decisions resulting from the review.


            student and exchange visitor information system

       The conferees direct the General Accounting Office to 
     report on the implementation of the Student and Exchange 
     Visitor Information System (SEVIS). The report should include 
     an assessment of the technical problems faced by institutions 
     of higher education using the system, the need for the 
     detailed information collected, and an analysis of corrective 
     action being taken by DHS to resolve problems in SEVIS. This 
     report should be provided to the Committees on Appropriations 
     not later than 180 days after enactment of the Act.


                      intellectual property rights

       The conferees direct the Under Secretary for Border and 
     Transportation Security to report, not later than January 15, 
     2004, on the number of Immigration and Customs Enforcement 
     open cases, closed cases, arrests, convictions, and 
     prosecutions that result in dismissals or civil actions 
     related to intellectual property rights enforcement for each 
     of fiscal years 2001 through 2003. The conferees strongly 
     encourage the Department to establish a government/industry 
     anti-counterfeit working group in order to facilitate 
     investigations, interdictions and prosecutions.


                       offsetting fee collections

       The conferees are concerned about the accuracy of estimates 
     for fees supporting ICE operations. There have been 
     significant downward adjustments in the estimates of funding 
     available from breached bond/detention and removal 
     collections that have forced the detention building program 
     to be delayed as long as two years, and similarly, 
     overestimates have been made for the Immigration Inspection 
     User Fee Account. The conferees direct ICE to ensure that fee 
     revenues are used first to fully fund base operations and 
     adjustments, as supported in justification materials provided 
     to Congress, before undertaking any new initiatives. The 
     conferees also direct DHS and ICE to inform the Committees on 
     Appropriations in a timely manner of potential short-term 
     operational or programmatic impacts from reduced fee 
     collections.


                          Rescission of Funds

       The conferees have rescinded $54,000,000 from funds made 
     available in chapter 6 of title I of Public Law 108-11. These 
     funds were originally appropriated for expenses related to 
     Operation Liberty Shield, but are no longer required for such 
     purposes.


                          FEDERAL AIR MARSHALS

       The conferees agree to provide $626,400,000 for the Federal 
     Air Marshals program within the Bureau of Immigration and 
     Customs Enforcement rather than the Transportation Security 
     Administration (TSA), pursuant to the Administration's 
     reorganization notification submitted to the Congress on 
     September 2, 2003. The House bill proposed $634,100,000 for 
     the Federal Air Marshals program as a separate account within 
     TSA's budget. The Senate bill provided $610,000,000 as a 
     separate line item within TSA's aviation security 
     appropriation. Within the funds provided, the conferees agree 
     to provide an additional $2,300,000 to partially offset the 
     costs of the fiscal year 2004 4.1 percent pay adjustment. 
     Funding shall be allocated as follows:

Federal Air Marshals.......................................$602,300,000
Explosive unit................................................4,100,000
Scheduling and information technology........................10,000,000
Air-to-ground communications.................................10,000,000
                                                       ________________
                                                       
  Total, Federal air marshals...............................626,400,000

                       Federal Protective Service


                          (TRANSFER OF FUNDS)

       The conferees agree to provide $424,211,000, as proposed by 
     the House and as included by the Senate in the Salaries and 
     Expenses appropriation for ICE.


                        AUTOMATION MODERNIZATION

       The conferees agree to provide $40,000,000, instead of 
     $367,605,000 as proposed by the House. Funds are available 
     until expended. The Senate included funding for this purpose 
     within the ICE appropriation. This new account will fund 
     major information technology investment projects for ICE, 
     including Atlas/Chimera data modernization and connectivity. 
     The conferees include a new provision prohibiting the 
     obligation of funds until the Committees receive and approve 
     an expenditure plan.


 AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND PROCUREMENT

       The conferees agree to provide $210,200,000, instead of 
     $175,000,000 as proposed by the House and $257,291,000 as 
     proposed by the Senate. Funds are available until expended. 
     This includes $35,200,000 to establish a Northern Border 
     airwing, of which $12,800,000 is available for aircraft 
     procurement.

[[Page 22680]]




      Air and Marine Interdiction (AMI) Program Modernization Plan

       The roles and missions of AMI are being redefined as it 
     becomes integrated as a core component of the Department, and 
     as a result of expanded airspace security missions following 
     the September 11, 2001, attacks and during the recent Liberty 
     Shield operation. The heightened need to coordinate air and 
     marine operations, as well as to continue aggressive 
     counterdrug efforts, make it essential that AMI modernize. As 
     part of a comprehensive review of AMI missions, structures, 
     operations and resources, a number of security shortfalls 
     were identified by the Department. These include the need to 
     establish Northern Border operations and to provide airspace 
     security for the National Capital Region. Other priorities 
     include replacing AMI's aging air and marine assets, and 
     continuing counterdrug interdiction in the source and transit 
     zones. The conferees were informed that, based on the review, 
     a modernization plan including a five-year recapitalization 
     plan will soon be completed.
       The conferees are committed to seeing AMI succeed, and need 
     to know more about the ultimate plan for AMI development, 
     modernization and deployment, including its relationship to 
     the Border Patrol and to the U.S. Coast Guard. The conferees 
     therefore direct the Under Secretary for Border and 
     Transportation Security to report to the Committees on 
     Appropriations no later than November 14, 2003, on the five-
     year plan for AMI missions, structure, operations, and 
     resources, including deployment and command and control 
     requirements, such as the need to increase the number of 
     servers at the Air and Marine Operations Center to eliminate 
     significant surveillance gaps affecting the Northern Border 
     and the western United States. In addition, the report should 
     address: (1) the status of any air traffic control 
     communications with recommendations on how to fill any voids; 
     (2) the current and future role played by tethered aerostat 
     radars (TARs) in airspace interdiction and homeland security, 
     describing any gaps in TARs coverage, such as those that may 
     exist in the central Gulf of Mexico; (3) the basing of air 
     assets, in particular the P-3 aircraft, many of which now 
     occupy temporary or inadequate hangar space such as that at 
     Jacksonville, Florida; and (4) detailed plans for using the 
     $35,800,000 included in the Act for continued support of the 
     Western Hemisphere Drug Elimination Act.


                       AMI Staffing and Personnel

       The conferees direct the Under Secretary to report, no 
     later than November 14, 2003, on AMI staffing needs and 
     personnel policies affecting the use and assignment of 
     personnel, including staffing grades, maintenance and 
     operational issues. The report, covering the next five years, 
     should display the numbers and types of authorized positions 
     needed to fulfill the mission of AMI; personnel and benefits 
     costs; current on-board staffing levels; and projections for 
     filling vacant positions.


                              CONSTRUCTION

       The conferees agree to provide $26,775,000 as proposed by 
     the Senate and as included by the House in the Salaries and 
     Expenses appropriation for ICE. Funds are available until 
     expended. The conferees direct ICE to review its nationwide 
     priority list for construction project funding and submit a 
     detailed plan for use of this funding within 45 days of 
     enactment of this Act. The conferees further direct ICE to 
     submit an updated construction master plan to the Committees 
     on Appropriations not later than July 1, 2004.


                       Conference Funding Levels


                                                                 Amount
Immigration and Customs Enforcement:
  Salaries and Expenses..................................$2,151,050,000
  Federal Air Marshals......................................626,400,000
  Federal Protective Service................................424,211,000
  Automation and Modernization...............................40,000,000
  Air and Marine Interdiction...............................210,200,000
  Construction...............................................26,775,000
                                                       ________________
                                                       
    Subtotal, Direct Appropriations.......................3,478,636,000
                                                       ================

                                            Offsetting Fee Collections:
    Immigration user fee..................................(107,000,000)
    Immigration examinations fund..........................(25,000,000)
    Breached bond/Detention fund..........................(116,000,000)
    SEVIS fund.............................................(25,000,000)
    COBRA...........................................................(0)
      Subtotal, Offsetting Fee Collections................(273,000,000)
                                                       ================

      Total, Immigration and Customs Enforcement........(3,751,636,000)

                 Transportation Security Administration


                           AVIATION SECURITY

       The conferees agree to provide $3,732,700,000 instead of 
     $3,659,200,000 as proposed by the House and $4,523,900,000 as 
     proposed by the Senate. Within this amount, not to exceed 
     $3,000 is available for official reception and representation 
     expenses as proposed by the House. The conference agreement 
     includes the use of $95,000,000 of prior year balances 
     carried over from fiscal year 2003. Bill language is also 
     included that reflects the collection of $2,070,000,000 from 
     aviation user fees, as authorized. The following table 
     specifies funding levels by budget activity:

Aviation Security
                                                   Passenger screening:
    Screening pilots.......................................$119,000,000
    Passenger screeners--PC&B.............................1,319,600,000
    Passenger screeners--training and other.................114,100,000
    HR services.............................................151,000,000
    Checkpoint support.......................................62,000,000
    CAPPS II.................................................35,000,000
    Registered traveler.......................................5,000,000
                                                       ________________
                                                       
      Subtotal, passenger screening.......................1,805,700,000
                                                       ================

                                                     Baggage screening:
    Baggage screeners--PC&B.................................774,200,000
    Baggage screeners-training and other.....................69,500,000
    EDS Purchase............................................150,000,000
    EDS Installation........................................250,000,000
    EDS/ETD maintenance......................................75,000,000
                                                       ________________
                                                       
      Subtotal, baggage screening.........................1,318,700,000
                                                       ================

                                    Security direction and enforcement:
    Aviation regulation and other enforcement...............275,400,000
    Airport management and staff............................233,800,000
    Airport information technology and other support........139,100,000
    Federal flight deck officer program......................25,000,000
    Air cargo................................................30,000,000
                                                       ________________
                                                       
      Subtotal, security direction and enforcement..........703,300,000
                                                       ================

      Subtotal, aviation security.........................3,827,700,000
      Use of prior year balances...................................
                                                            -95,000,000
                                                       ________________
                                                       
      Total, Aviation Security............................3,732,700,000


                              Screener Cap

       The conferees include bill language that caps full-time 
     equivalent screener staff to 45,000, as proposed by the 
     House. The conferees expect the Transportation Security 
     Administration (TSA) to have no more than 45,000 full-time 
     equivalent screeners on its rolls at the end of fiscal year 
     2004. In order to meet this requirement, the conferees urge 
     TSA to hire more part-time and seasonal screeners. However, 
     the conferees recognize that there are still staffing 
     imbalances in many airports around the country and that TSA 
     continues to lose screeners through attrition. Consequently, 
     TSA may need to reduce staffing in some locations to comply 
     with this provision while recruiting and hiring additional or 
     replacement screeners at other airports. The prohibition on 
     the number of full-time equivalents is not intended to 
     prohibit TSA from hiring screeners during fiscal year 2004 at 
     those airports where additional or replacement screeners are 
     required to maintain aviation security and customer service.


                               Wait Times

       The conferees do not agree with language contained in the 
     Senate report that requires TSA to ensure a 10-minute 
     passenger screening standard is consistently met.


                               air cargo

       The conferees provide a total of $30,000,000 within 
     aviation security to strengthen the agency's oversight of air 
     cargo security. Additional funding of $55,000,000 is provided 
     within the Research and Development account.
       Currently, to secure 100-percent of cargo transported 
     aboard passenger aircraft, TSA prohibits any cargo from 
     ``unknown or high-risk'' shippers from being placed aboard 
     these aircraft. TSA ensures that any shipper wishing to 
     transport cargo on passenger aircraft achieve ``known'' 
     status through participating in the agency's ``known shipper 
     program''. Passenger carriers, all-cargo carriers, and 
     freight forwarders that interline cargo to passenger carriers 
     are responsible for validating the known shippers. Shippers 
     that cannot be validated are not allowed to transport cargo 
     via passenger carriers.
       Within this funding, the conferees direct TSA to improve 
     its oversight of the known shipper program, using a risk-
     weighted freight screening system that will identify pieces 
     of cargo that require closer scrutiny before being loaded on 
     passenger aircraft. An additional 100 TSA staff are provided 
     to perform more in-depth audits of shipper compliance with 
     the known shipper requirement. An improved automated system 
     should include the automated known shipper verification 
     system, the automated indirect air carrier certification and 
     recertification program, and automated cargo profiling 
     systems. In addition, funding has also been provided for TSA 
     to conduct background checks

[[Page 22681]]

     on those employees who handle cargo, have access to secure 
     areas or ramps in which cargo is loaded onto passenger 
     airplanes, or have direct access to air cargo being shipped. 
     Finally, TSA should consider testing the expansion of the 
     Customs-Trade Partnership Against Terrorism (C-TPAT) to the 
     domestic air cargo supply chain.


                          federal air marshals

       The conferees agree to provide $626,400,000 for the Federal 
     Air Marshals program within the Bureau of Immigration and 
     Customs Enforcement (ICE) rather than TSA, pursuant to the 
     Administration's reorganization notification submitted to the 
     Congress on September 2, 2003.


                       maritime and land security

       The conferees agree to provide $263,000,000 instead of 
     $231,700,000 as proposed by the House and $295,000,000 as 
     proposed by the Senate. Funding is available until September 
     30, 2005, as proposed by the Senate instead of until expended 
     as proposed by the House. The following table specifies 
     funding levels by budget activity:

Maritime and Land Security:
  Port security grants.....................................$125,000,000
  Credentialing/transportation worker identification card....50,000,000
  Intercity bus security.....................................10,000,000
  Operation Safe Commerce....................................17,000,000
  Trucking industry security program (Highway Watch).........22,000,000
  Hazardous materials security and truck tracking program.....7,000,000
  Nuclear detection and monitoring............................4,000,000
  Staffing and operations....................................28,000,000
                                                       ________________
                                                       
    Total, Maritime and Land Security.......................263,000,000


               transportation worker identification card

       The conferees agree to provide $50,000,000 for the 
     transportation worker identification card (TWIC) instead of 
     $55,000,000 as proposed by the House and $35,000,000 as 
     proposed by the Senate. The conferees are concerned with the 
     status of implementing TWIC and the lack of progress in the 
     test and evaluation phase as well as the development of 
     guidelines, technology, applications, and enrollment for 
     personalization and issuance of a universal card that are to 
     be developed by fiscal year 2004.
       The conferees encourage TSA to evaluate all technologies 
     for these cards, including those currently in use in other 
     federal agencies, to ensure that the most secure and cost 
     efficient identification card is developed. Further, the 
     conferees agree with language contained in the House report 
     that TSA develop a personalization system that is centralized 
     and uses an existing government card production facility for 
     these activities. While providing funds for this program, the 
     conferees direct TSA not to obligate funds for the next phase 
     until a spend plan has been developed, the Committees on 
     Appropriations are briefed on the results of the technical 
     evaluation and prototype phases, and agree that the program 
     should move forward.


                              intelligence

       The conferees agree to provide $13,600,000, as proposed by 
     the Senate instead of $13,700,000 as proposed by the House. 
     Funding is available until September 30, 2004, as proposed by 
     the Senate instead of available until expended as proposed by 
     the House.


                        research and development

       The conferees agree to provide $155,200,000 instead of 
     $125,700,000 as proposed by the House and $130,200,000 as 
     proposed by the Senate. The following table specifies funding 
     levels by budget activity:

Research and Development:
  Research and development (Tech Center)....................$55,200,000
  Next generation EDS/ETD....................................45,000,000
  Air cargo..................................................55,000,000
                                                       ________________
                                                       
    Total, Research and Development.........................155,200,000


                               air cargo

       The conferees agree to provide $55,000,000 for air cargo 
     security research and development activities. This funding 
     should be used by TSA to pursue a variety of technological 
     solutions that would allow for the most efficient and 
     targeted inspections of cargo being carried on passenger 
     aircraft. TSA is directed to issue a request for proposals at 
     the earliest date possible for these technologies and report 
     back to the Committees on Appropriations by April 1, 2004, on 
     the options to inspect air cargo, the associated costs, and 
     timetable. Furthermore, TSA should immediately launch a pilot 
     program to use explosive detection machines in select 
     locations to screen high-risk cargo. Consideration should be 
     made for those air carriers or routes that carry a high 
     percentage of cargo on passenger aircraft. TSA should also 
     consider expanding the canine screening teams for additional 
     cargo screening applications. Funding should also be made 
     available to test additional air cargo screening tools, based 
     on recommendations from the industry, or to initiate a 
     public-private partnership to design, develop and test air 
     cargo facility security applications at high-cargo airports 
     in the United States.


                             administration

       The conferees agree to provide $427,200,000 instead of 
     $487,100,000 as proposed by the House and $433,200,000 as 
     proposed by the Senate. Funding is available until September 
     30, 2005, as proposed by the House. The following table 
     specifies funding levels by budget activity:

Administration:
  Headquarters support.....................................$173,700,000
  Mission support centers....................................40,000,000
  Information technology applications.......................198,100,000
  Corporate training.........................................15,400,000
                                                       ________________
                                                       
    Total, Administration...................................427,200,000


                       background investigations

       Within the funding provided under Administration the 
     conferees agree to provide $6,000,000 to conduct background 
     investigations on TSA employees, including security 
     screeners, instead of $12,000,000 as proposed by the Senate. 
     The House included no similar provision. In addition, a 
     general provision has been included that provides TSA broader 
     authority to collect fees for background investigations and 
     credentialing necessary for all modes of transportation.


                       United States Coast Guard

                           operating expenses

                    (including rescission of funds)

       The conferees agree to provide a total appropriation of 
     $4,713,055,000 instead of $4,719,000,000 as proposed by the 
     Senate and $4,703,530,000 as proposed by the House. Within 
     this total, $340,000,000 shall be available for defense-
     related activities, as proposed by the Senate instead of 
     $1,300,000,000 as proposed by the House. In addition, the 
     conferees have rescinded $71,000,000 from funds made 
     available in chapter 6 of title I of Public Law 108-11 as 
     proposed by the Senate. The House bill contained no similar 
     provision.
       Funding for operating expenses shall be allocated as 
     follows:

Military Pay and allowances:
  Military pay and allowances............................$1,993,713,000
  Military health care......................................464,890,000
  Permanent change of stations..............................105,184,000
  FECA/UCX....................................................4,420,000
                                                       ________________
                                                       
    Subtotal, military pay and allowances.................2,568,207,000
                                                       ================

Civilian pay and benefits:
  Civilian pay and benefits.................................381,246,000
  Pay parity for civilians....................................4,247,000
                                                       ________________
                                                       
    Subtotal, civilian pay and benefits.....................385,493,000
                                                       ================

Training and Recruiting:
  Training and education....................................106,638,000
  Recruiting.................................................20,702,000
  Area and district training and education....................4,000,000
  Command training and education.............................35,100,000
  DHS administrative service.................................-2,200,000
                                                       ________________
                                                       
    Subtotal, training and recruiting.......................164,240,000
                                                       ================

Operating funds and unit level maintenance:
  Atlantic command..........................................145,714,000
  Pacific command...........................................161,540,000
  1st District...............................................38,708,000
  7th District...............................................54,498,000
  8th District...............................................39,150,000
  9th District...............................................20,860,000
  13th District..............................................16,050,000
  14th District..............................................11,522,000
  17th District..............................................28,852,000
  Headquarters offices......................................415,913,000
  Headquarters managed units................................111,310,000
  Other activities............................................2,290,000
  Portable radiation search tools.............................1,500,000
  Travel.....................................................-4,000,000
  DHS administrative services...............................-11,200,000
  Centrally-managed accounts (rent, ammo, postal)..........-131,100,000
  Command training and education............................-35,100,000
                                                       ________________
                                                       
    Subtotal, operating funds and unit level maintenance....866,507,000
                                                       ================

Centrally-managed accounts:
  Centrally-managed operating expenses......................131,100,000
  DHS administrative services................................-1,700,000
                                                       ________________
                                                       
    Subtotal, centrally-managed accounts....................129,400,000
                                                       ================

Intermediate and depot level maintenance:
  Aircraft maintenance......................................218,771,000

[[Page 22682]]

  Electronic maintenance.....................................89,889,000
  Ocean engineering and shore facilities maintenance........152,048,000
  Vessel maintenance........................................146,400,000
  DHS administrative services................................-7,900,000
                                                       ________________
                                                       
    Subtotal, immediate and depot level maintenance.........599,208,000
                                                       ================

Subtotal, operating expenses..............................4,713,055,000
Rescission..................................................-71,000,000
                                                       ________________
                                                       
    Total, Operating Expenses.............................4,642,055,000

       For the fiscal year 2005 budget justification and for 
     reprogramming purposes in fiscal year 2004, the Coast Guard 
     shall use the six new budget categories listed above 
     (military pay and allowances, civilian pay and benefits, 
     training and recruiting, operating funds and unit level 
     maintenance, centrally-managed accounts, and intermediate and 
     depot level maintenance). However, the conferees expect 
     sufficient detail on each program, project, or activity in 
     the fiscal year 2005 budget justifications to make informed 
     decisions about the appropriate level of funding in each 
     program line item within these six budget categories.
       The conference agreement contains bill language to permit 
     operating expenses to be used to make payments into the 
     Department of Defense Medicare-Eligible Retiree Health Care 
     Fund, as proposed by the Senate. The conference agreement 
     also limits the number of passenger vehicles that the Coast 
     Guard may purchase or lease in fiscal year 2004 to 25, 
     instead of 5 as proposed by the Senate. The House bill 
     contained no similar provisions. Finally, the conference 
     agreement includes bill language to permit the Coast Guard to 
     use not to exceed $3,000 for official reception and 
     representation activities, as proposed by the House. The 
     Senate bill contained no similar provision.


                              Ice Breaking

       The conferees direct the Coast Guard to renegotiate the 
     memorandum of agreement relating to ice breaking activities 
     with the National Science Foundation (NSF), as discussed in 
     House Report 108-169. A reduction of $2,500,000 has been made 
     to the budget request to reflect additional payments from NSF 
     in fiscal year 2004 for ice breaking activities in the 
     Antarctic region.


                   Maritime Safety and Security Teams

       A total of $71,800,000 has been provided for Maritime 
     Safety and Security Teams (MSSTs) instead of $64,000,000 as 
     proposed by the House and $76,000,000 as proposed by the 
     Senate. At this level, the conferees assume that seven MSSTs 
     will be funded in fiscal year 2004 for a minimum of two 
     quarters each, including one MSST in the 17th District.


                ENVIRONMENTAL COMPLIANCE AND RESTORATION

       The conferees agree to provide $17,000,000 as proposed by 
     the Senate and the House.


                            RESERVE TRAINING

       The conferees agree to provide $95,000,000 as proposed by 
     the Senate instead of $94,051,000 as proposed by the House.


              ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

       The conferees agree to provide $967,200,000 instead of 
     $805,000,000 as proposed by the House and $1,035,000,000 as 
     proposed by the Senate. Consistent with prior practice, bill 
     language is included to distribute the total appropriation by 
     separate obligation availabilities to prevent long-term 
     unobligated balances and ensure fiscal discipline. The 
     following table summarizes the recommended level by program, 
     project, and activity:

Vessels.....................................................$66,500,000
  Great Lakes Icebreaker (GLIB) replacement.................(2,000,000)
  41 foot UTB and NSB replacement project..................(12,000,000)
  9 additional coastal patrol boats to enforce security zon(52,500,000)
Integrated Deepwater Systems................................668,200,000
  Aircraft................................................(142,700,000)
  Surface ships...........................................(302,600,000)
  C4ISR...................................................(101,400,000)
  Logistics................................................(45,400,000)
  Systems engineering and integration......................(42,100,000)
  Government program management............................(34,000,000)
Other equipment.............................................162,500,000
  Defense messaging system (DMS) implementation.............(3,500,000)
  National distress & response system modernization projec(134,000,000)
  Oil spill prevention efforts under ports and waterways saf(1,000,000)
  Automatic Identification System..........................(24,000,000)
Personnel and related support................................70,000,000
  Core acquisition costs...................................(69,500,000)
  Direct personnel cost.......................................(500,000)
                                                       ________________
                                                       
    Total, Acquisition, Construction, and Improvements.....$967,200,000


                      Integrated Deepwater Systems

       The conferees agree to provide $668,200,000 instead of 
     $702,000,000 as proposed by the Senate and $530,000,000 as 
     proposed by the House. The following table summarizes the 
     recommended level by program, project, and activity:

Aircraft
  Maritime Patrol Aircraft...................................25,000,000
  Unmanned Air Vehicles......................................50,000,000
  Other contracts/legacy sustainment.........................67,700,000
Surface
  National Security Cutter..................................208,000,000
  OPC conceptual and contract design.........................20,000,000
  Fast Response Cutter/110-123 ft. patrol boat conversion....66,000,000
  Short Range Prosecutor......................................1,600,000
  Other contracts/legacy sustainment..........................7,000,000
C4ISR
  Command and Control System for Common Operating Picture....58,000,000
  Cutter upgrades--C4ISR......................................7,100,000
  Shore sites................................................22,100,000
  Other contracts/legacy sustainment.........................14,200,000
Logistics
  Integrated logistics support...............................19,200,000
  Facilities design required for future deployments...........5,500,000
Shore Facilities.............................................20,700,000
Systems Engineering and Integration..........................42,100,000
Government Program Management................................34,000,000
                                                       ________________
                                                       
    Total, Integrated Deepwater Systems....................$668,200,000


                        Capital Investment Plan

       Bill language is included to require the Coast Guard to 
     submit a five-year capital investment plan with initial 
     submission of the President's budget request, as proposed by 
     the House. The Senate bill contained no similar provision.


                       Disposal of Real Property

       Bill language is included to credit to the Acquisition, 
     Construction, and Improvements appropriation any proceeds 
     from the sale or lease of the Coast Guard's surplus real 
     property and to provide that such receipts are available for 
     obligation only for the Rescue 21 project until September 30, 
     2006, as proposed by the House. The Senate bill contained 
     similar language, but made these funds available until 
     expended.


                         alteration of bridges

       The conferees agree to provide $19,250,000 instead of 
     $19,500,000 as proposed by the House. The Senate funded 
     alteration of bridges under acquisition, construction, and 
     improvements. Within this total, the funds shall be allocated 
     as follows:

Fourteen Mile bridge in Mobile, Alabama......................$5,250,000
Burlington Northern Santa Fe bridge in Burlington, Iowa.......2,000,000
Canadian Pacific Railroad bridge in LaCrosse, Wisconsin.......1,000,000
Chelsea Street bridge in Chelsea, Massachusetts...............2,250,000
Florida Avenue bridge in New Orleans, Louisiana...............6,750,000
EJ&E Railroad bridge in Morris, Illinois......................1,000,000
John F. Limehouse bridge in Charleston, South Carolina........1,000,000

       In addition the conferees include a proviso in the bill 
     that funds be available only to the extent that steel, iron 
     and manufactured products used in such projects are produced 
     in the United States with certain exceptions, as proposed by 
     the Senate. The House bill contained no similar provision.


              research, development, test, and evaluation

       The conferees agree to provide $15,000,000 instead of 
     $22,000,000 as proposed by the House. The Senate provided 
     $15,000,000 under the Science and Technology Directorate for 
     Coast Guard's research, development, test, and evaluation 
     program.
       The conferees are aware that the development of new 
     technologies is necessary if the Coast Guard is to keep pace 
     with its expanding mission. The conferees therefore direct 
     the Commandant to conduct an independent study on research 
     and development priorities, as outlined in the Senate bill 
     under the operating expenses account, and submit the findings 
     of this study to the Committees on Appropriations by June 1, 
     2004.


                              retired pay

       The conferees agree to provide $1,020,000,000 as proposed 
     by both the Senate and the House.

                      United States Secret Service


                         salaries and expenses

       The conferees agree to provide $1,137,280,000 instead of 
     $1,148,700,000 as proposed by the

[[Page 22683]]

     House and $1,114,737,000 as proposed by the Senate. This 
     includes $16,365,000 for White House mail screening; 
     $6,824,000 to annualize fiscal year 2003 pay base funding not 
     captured in the fiscal year 2004 budget; $6,475,000 to fully 
     fund the 2003 pay raise; $3,336,000 to fully annualize prior 
     year staff increases; and $5,450,000 to partially offset the 
     costs of the fiscal year 2004 4.1 percent pay adjustment. 
     Funding also includes $2,100,000 for forensic support to the 
     National Center for Missing and Exploited Children (NCMEC) as 
     well as a $5,000,000 grant to NCMEC.


     acquisition, construction, improvements, and related expenses

       The conferees agree to provide $3,579,000 as proposed by 
     the House and the Senate. Funds are available until expended. 
     The conferees include bill language under the Salaries and 
     Expenses Account, as proposed by the House, to permit the 
     James J. Rowley Training Center (JJRTC) to provide protective 
     training on a reimbursable basis. The conferees note that the 
     JJRTC is currently operating at full capacity simply to meet 
     training requirements of the Secret Service and is presently 
     unable to accommodate training outside students. The current 
     facilities would need to be expanded to permit increases in 
     training capacity. No additional funding for such expansion 
     has been requested or provided in this Act. The conferees 
     include bill language based on the expectation that it would 
     only be utilized in emergency situations, subject to prior 
     notification to the Committees on Appropriations.

                  TITLE III--PREPAREDNESS AND RECOVERY

                    Office for Domestic Preparedness

       The conferees view state and local jurisdictions' ability 
     to detect, prevent and respond to a terrorist attack as a 
     high priority. State and local responders are first to arrive 
     on scene when a terrorist attack occurs and must be prepared 
     to protect life and property. This function is inherently 
     non-federal, although federal resources and expertise are 
     needed to manage the crisis, and provide support to state and 
     local assets when an attack overwhelms their resources. For 
     purposes of eligibility for funds under this heading, any 
     county, city, village, town, district, borough, port 
     authority, transit authority, water district, regional 
     planning commission, council of government, Indian tribe, 
     authorized tribal organization, Alaska Native village, or 
     other political subdivision of any state shall constitute a 
     ``local unit of government.''


                        state and local programs

       The conferees agree to provide $3,287,000,000 instead of 
     $2,888,000,000 as proposed by the Senate and $3,513,000,000 
     as proposed by the House for the Office for Domestic 
     Preparedness (ODP). Funding is available until September 30, 
     2004, as proposed by the Senate, instead of until expended as 
     proposed by the House. None of these funds may be used for 
     construction or renovation of facilities.

        State and local programs                                 Amount
Formula-Based Grants.....................................$1,700,000,000
Law Enforcement Terrorism Prevention Grants.................500,000,000
High-Threat, High-Density Urban Areas Grants................725,000,000
Citizen Corps................................................40,000,000
National Domestic Preparedness Consortium...................135,000,000
Technical Assistance.........................................30,000,000
National Exercise Program....................................50,000,000
Competitive Training Grants..................................60,000,000
Equipment and Testing........................................17,000,000
Management and Administration................................30,000,000
                                                       ________________
                                                       
    Total.................................................3,287,000,000


                          formula-based grants

       The conferees agree to provide $1,700,000,000, instead of 
     $1,900,000,000 as proposed by the House and $1,200,000,000 as 
     proposed by the Senate. These funds are available to all 
     states for purposes of training, procuring equipment (such as 
     interoperable communications equipment), and conducting 
     exercises, based on the state's approved, updated homeland 
     security strategies. The conferees expect that these funds 
     will be made available to states within 30 days after 
     enactment of this Act; that states will have 30 days to apply 
     after the grant is announced; and that ODP will act within 15 
     days of receipt of an application or receipt of an updated 
     state plan, whichever is later. The conferees also agree that 
     no less than 80 percent of these funds shall be obligated by 
     the state to local units of government within 60 days of the 
     state receiving funds.
       The conferees are aware of the need for overtime funding to 
     backfill those first responders attending ODP certified 
     training classes. The conferees understand that ODP 
     anticipates continuing this overtime as an allowable expense 
     of the formula-based grant program. The conferees support 
     this effort with the understanding that only overtime 
     directly related to backfilling first responders attending 
     ODP certified training classes is eligible.
       The Secretary may provide a waiver for the use of state 
     grant funds by a local jurisdiction to purchase aviation 
     equipment, where such equipment will be utilized primarily 
     for homeland security objectives and permissible program 
     activities and provided that the local jurisdiction certifies 
     that it has an operating aviation unit and that the costs for 
     operation and maintenance of such equipment will be paid from 
     non-grant funds.


              Law Enforcement Terrorism Prevention Grants

       The conferees agree to provide $500,000,000, as proposed by 
     the Senate, instead of $510,000,000 as proposed by the House. 
     These funds are made available to all states for purposes as 
     described in Senate Report 108-86. The conferees expect that 
     these funds will be made available to states within 30 days 
     after enactment of this Act; that states will have 30 days to 
     apply after the grant is announced; and that ODP will act 
     within 15 days of receipt of an application or receipt of an 
     updated state plan, whichever is later. The conferees also 
     agree that no less than 80 percent of these funds shall be 
     obligated by the state to local units of government within 60 
     days of the state receiving funds.
       Law enforcement terrorism prevention activities that 
     involve compensation of overtime shall be limited to those 
     specifically related to homeland security, such as providing 
     expanded investigative and intelligence efforts. Funding may 
     not be used to supplant ongoing, routine public safety 
     activities of state and local law enforcement. State 
     applications must certify that all requests for overtime 
     funding comply with this requirement.


              High-Threat, High-Density Urban Areas Grants

       The conferees agree to provide $725,000,000, instead of 
     $500,000,000 as proposed by the House and $750,000,000 as 
     proposed by the Senate. The conferees do not agree to provide 
     $200,000,000 in a separate account for the protection of 
     critical infrastructure, as proposed by the House. These 
     funds are made available to the Secretary for discretionary 
     grants to high-threat, high-density urban areas. The 
     Secretary shall take into consideration credible threat, 
     presence of critical infrastructure, population, 
     vulnerability, cooperation of multiple jurisdictions in 
     preparing domestic preparedness plans, and the identified 
     needs of public agencies when determining the allocation of 
     these funds. The conferees expect that these funds will be 
     obligated no later than 60 days after enactment of this Act. 
     The conferees also agree that no less than 80 percent of 
     these funds shall be obligated by the state to local units of 
     government within 60 days of the state receiving funds. 
     Grants may be made to single or multiple jurisdictions in the 
     same urban area.
       The conferees are concerned with the limited information 
     provided to the Committees on Appropriations regarding the 
     manner in which the Department is distributing these grants. 
     The conferees direct the Department to fully brief the 
     Committees on Appropriations on the methodology for the 
     proposed distribution of the funds appropriated for these 
     grants before the distribution is announced.


                          Citizen Corps Grants

       The conferees agree to provide $40,000,000, instead of 
     $45,000,000 as proposed by the House and $50,000,000 as 
     proposed by the Senate.


               National Domestic Preparedness Consortium

       The conferees agree to provide $135,000,000, instead of 
     $125,000,000 as proposed by the House and $140,000,000 as 
     proposed by the Senate. Of the funds provided, $55,000,000 
     shall be for the Center for Domestic Preparedness.


                          Technical Assistance

       The conferees agree to provide $30,000,000 for direct 
     technical assistance to states, as proposed by the Senate, 
     instead of $67,000,000 as proposed by the House. The 
     conferees do not provide an additional technical assistance 
     account as proposed by the Senate for $10,000,000 and by the 
     House for $32,000,000 under Grant Administration and 
     Planning.


                       National Exercise Program

       The conferees agree to provide $50,000,000, as proposed by 
     both the House and Senate. The conferees fully support the 
     Department's initiative to establish a performance-based 
     national exercise program that centers on the Top Officials 
     (TOPOFF) exercise series.


                      Competitive Training Grants

       The conferees agree to provide $60,000,000, instead of 
     $35,000,000 as proposed by the House under Centers for 
     Emergency Preparedness. The Senate proposed $28,000,000 for 
     the continuation of core training and $60,000,000 for 
     emerging training in separate accounts. The conferees expect 
     ODP to fully honor all current training commitments.


                         Equipment and Testing

       The conferees agree to provide $17,000,000, instead of 
     $40,000,000 as proposed by the Senate. The House provided 
     $5,000,000 for equipment and $12,000,000 for testing in 
     separate accounts. The conferees agree that funding of 
     $15,000,000 for standards development be moved to Science and 
     Technology to consolidate department-wide research and 
     development efforts. The conferees further direct Science and 
     Technology to continue the program established by ODP in 
     coordination

[[Page 22684]]

     with the National Institute of Standards and Technology 
     (NIST), consistent with the fiscal year 2003 budget directive 
     and the 5-year plan for development with NIST.


                     Management and Administration

       The conferees agree to provide $30,000,000, as proposed by 
     the Senate. The House provided $21,000,000 for management and 
     administration and $11,000,000 for contractor support in 
     separate accounts. Of the funds provided, up to $11,000,000 
     shall be available for contractor support.


                    Emergency Medical Services (EMS)

       The conferees agree with the language in both House Report 
     108-169 and Senate Report 108-86 regarding EMS providers. 
     Further, the conferees direct the Department to submit the 
     EMS grants report directed in Senate Report 108-86 no later 
     than March 1, 2004.


                             Best Practices

       The conferees request a report from the Department, no 
     later than January 15, 2004, detailing efforts to assess and 
     disseminate best practices to emergency responders. This 
     report shall address, at a minimum, efforts to coordinate and 
     share information with state and local officials and 
     emergency preparedness organizations, and steps the 
     Department proposes to improve the coordination and sharing 
     of such information.


                   Preparedness Grants Consolidation

       The conferees are disappointed in the inability of the 
     Department to provide a comprehensive plan on the ``one-stop 
     shop'' proposal. The conferees fully expect to receive this 
     plan as soon as it is available and direct ODP to submit all 
     legislative proposals required to achieve this initiative as 
     part of the fiscal year 2005 budget request.


                     Firefighter Assistance Grants

       The conferees agree to provide $750,000,000, as proposed by 
     the Senate. The House proposed $760,000,000 under the 
     Emergency Preparedness and Response Directorate. Not to 
     exceed 5 percent may be used for administrative expenses. 
     Funds are available until September 30, 2005.
       The conferees agree to provide Firefighter Assistance 
     Grants as a separate appropriation within the Office for 
     Domestic Preparedness. The conferees agree that the 
     Department shall continue current administrative practices in 
     a manner identical to the current fiscal year, including a 
     peer review process of applications, granting funds directly 
     to local fire departments, and the inclusion of the United 
     States Fire Administration during grant administration.
       The conferees believe that, when establishing priorities 
     for firefighting vehicles within this grant program, the 
     Department should take into consideration the unique 
     geographical needs of individual fire departments.

                         Counterterrorism Fund

       The conferees agree to provide $10,000,000, instead of 
     $20,000,000 as proposed by the House and the Senate. Funds 
     are available until expended. The Secretary shall notify the 
     Committees on Appropriations 15 days prior to obligation of 
     these funds.

                  Emergency Preparedness and Response


 OFFICE OF THE UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE

       The conferees agree to provide $3,450,000, instead of 
     $3,615,000 as proposed by the Senate. The House provided 
     $3,293,000 for the Office of the Under Secretary in Title I, 
     under Departmental Operations.


            PREPAREDNESS, MITIGATION, RESPONSE, AND RECOVERY

       The conferees agree to provide $225,000,000, instead of 
     $363,339,000 as proposed by the House. The Senate provided 
     $163,000,000 for Preparedness, Mitigation, Response, and 
     Recovery under Operating Expenses. Funding is available until 
     September 30, 2004, as proposed by the House, instead of 
     until expended as proposed by the Senate. The conferees agree 
     to provide an additional $2,000,000 to partially offset the 
     costs of the fiscal year 2004 4.1 percent pay adjustment.
       The conferees do not provide $25,000,000 for an emergency 
     operations center competitive grant program, as proposed by 
     the House.


                     urban search and rescue teams

       Of the funds provided for Preparedness, Mitigation, 
     Response, and Recovery, the conferees agree to provide 
     $60,000,000 for Urban Search and Rescue Teams, instead of 
     $64,587,000 as proposed by the Senate under Operating 
     Expenses. The House bill contained no similar provision. Not 
     to exceed 3 percent may be used for administrative expenses, 
     instead of 5 percent as proposed by the Senate.


                          web-based technology

       In concurring with language in House Report 108-169, the 
     conferees direct the Emergency Preparedness and Response 
     Directorate to continue the Disaster Management Initiative, 
     commonly referred to as DisasterHelp.gov. The conferees 
     further direct the Emergency Preparedness and Response 
     Directorate to collect the appropriate sums as necessary from 
     the following contributing agencies: the Department of 
     Justice, the Department of Commerce, the National Oceanic and 
     Atmospheric Administration, the U.S. Army, the Department of 
     Transportation, the Department of Interior, the Department of 
     Health and Human Services, the Department of Agriculture, and 
     the Environmental Protection Agency.


                 administrative and regional operations

       The conferees agree to provide $167,000,000, instead of 
     $168,589,000 as proposed by the House. The Senate provided 
     $165,214,000 for Administrative and Regional Operations under 
     Operating Expenses. Funding is available until September 30, 
     2004, as proposed by the House, instead of until expended as 
     proposed by the Senate. The conferees agree to provide an 
     additional $1,733,000 to partially offset the costs of the 
     fiscal year 2004 4.1 percent pay adjustment. Funding of not 
     to exceed $3,000 is provided for official reception and 
     representation expenses.


                           operating expenses

                         (rescission of funds)

       The conferees rescind $3,000,000 of the funds provided by 
     Public Law 108-11, as proposed by the Senate. The House bill 
     included no similar provision.


                         public health programs

       The conferees agree to provide $484,000,000, as proposed by 
     the House. The Senate provided $434,000,000 under Operating 
     Expenses. Of the funds provided, $400,000,000 shall be 
     available for the Strategic National Stockpile, to remain 
     available until expended; $34,000,000 for the National 
     Disaster Medical System; and $50,000,000 for the Metropolitan 
     Medical Response System.


                       biodefense countermeasures

       The conferees agree to provide $5,593,000,000 for fiscal 
     years 2004 through 2013 as proposed by the House. Not to 
     exceed $890,000,000 is available for obligation in fiscal 
     year 2004, and not to exceed $3,418,000,000 is available for 
     obligation in fiscal years 2004-2008 as proposed by the 
     House. The Senate included no similar provision.


              radiological emergency preparedness program

       The conferees agree to retain the Radiological Emergency 
     Preparedness Program as a separate appropriation, as proposed 
     by the Senate. The House proposed the Radiological Emergency 
     Preparedness Program be funded under Preparedness, 
     Mitigation, Response, and Recovery.


                            disaster relief

                     (including transfer of funds)

       The conferees agree to provide $1,800,000,000, as proposed 
     by the House, instead of $1,956,000,000 as proposed by the 
     Senate. Of the funds provided, not to exceed $22,000,000 
     shall be transferred to the Office of Inspector General. 
     Funds are available until expended. The conferees direct the 
     continuation of the Section 404 post-disaster hazard 
     mitigation grants program as part of a comprehensive 
     mitigation strategy.


            disaster assistance direct loan program account

       The conferees agree to provide $560,000 for administrative 
     expenses, instead of $558,000 as proposed by the House and 
     $557,000 as proposed by the Senate. The conferees agree to 
     provide an additional $3,000 to partially offset the costs of 
     the fiscal year 2004 4.1 percent pay adjustment. Gross 
     obligations for the principal amount of direct loans shall 
     not exceed $25,000,000, as proposed by both the House and 
     Senate.


                 national pre-disaster mitigation fund

       The conferees agree to provide $150,000,000, as proposed by 
     the Senate. The House proposed $180,000,000 for pre-disaster 
     mitigation under Grant Programs. Not to exceed 3 percent may 
     be used for administrative expenses. Funds are available 
     until expended. The conferees do not provide $250,000 to each 
     state for planning purposes, as proposed by the House.


                      flood map modernization fund

       The conferees agree to provide $200,000,000, as proposed by 
     both the House and the Senate. Not to exceed 3 percent may be 
     used for administrative expenses. Funds are available until 
     expended.
       To correct a misprint on page 54 of House Report 108-169, 
     the conferees agree, in the first line of the first paragraph 
     after the heading ``Flood Mapping Projects'', to insert 
     ``Perry,'' after ``of''.


                     national flood insurance fund

                     (including transfer of funds)

       The conferees agree to provide up to $32,663,000 for 
     salaries and expenses as proposed by the Senate, instead of 
     $32,761,000 as proposed by the House. The conferees further 
     agree to provide up to $77,809,000 for flood mitigation 
     activities and limitations of $55,000,000 for operating 
     expenses, $565,897,000 for agents' commissions and taxes, and 
     $40,000,000 for interest on Treasury borrowings as proposed 
     by both the House and the Senate.


                     national flood mitigation fund

                     (including transfer of funds)

       The conferees agree to provide $20,000,000 by transfer from 
     the National Flood Insurance Fund, as proposed by the Senate. 
     The House proposed $20,000,000 for flood mitigation by 
     transfer under Grant Programs. Funds are available until 
     September 30, 2005.


             emergency management performance grants (empg)

       The conferees agree to provide $180,000,000, instead of 
     $165,000,000 as proposed by the Senate. The House provided 
     $168,000,000 for

[[Page 22685]]

     EMPGs under Preparedness, Mitigation, Response, and Recovery. 
     Not to exceed 3 percent may be used for administrative 
     expenses. The conferees agree that EMPGs shall remain in the 
     Emergency Preparedness and Response Directorate where the 
     focus is an all-hazards approach to emergency management. In 
     addition, the conferees direct the continuation of funding 
     personnel expenses, as stated in both the House and Senate 
     reports.


                       emergency food and shelter

       The conferees agree to provide $153,000,000, as proposed by 
     both the House and the Senate. Not to exceed 3.5 percent may 
     be used for administrative expenses. Funds are available 
     until expended.


                        cerro grande fire claims

       The conferees agree to provide $38,062,000, as proposed by 
     the Senate. The House included no similar provision. Not to 
     exceed 5 percent may be used for administrative expenses. 
     Funds are available until expended. This funding will fully 
     cover all remaining Cerro Grande fire claims.

TITLE IV--RESEARCH AND DEVELOPMENT, TRAINING, ASSESSMENTS, AND SERVICES

                  Citizenship and Immigration Services

       The conferees agree to provide $236,126,000 for the Bureau 
     of Citizenship and Immigration Services (BCIS), instead of 
     $248,500,000 as proposed by the House and $229,377,000 as 
     proposed by the Senate. This includes: $3,836,000 for 
     physical security and staffing; $5,600,000 to cover the costs 
     of 2003 pay increases and unspecified administrative 
     reductions; and $1,125,500 to partially offset the costs of 
     the fiscal year 2004 4.1 percent pay adjustment. The 
     conferees do not provide additional funding requested for 
     information technology and for a program evaluation unit, but 
     strongly support establishment of a program evaluation unit 
     if funded through fee collections. Within the funds provided, 
     not to exceed $5,000 is provided for official reception and 
     representation expenses.


            tamper-proof travel and identification documents

       The conferees are concerned that certain documents issued 
     by the Department of Homeland Security and the State 
     Department represent a significant security risk, being 
     vulnerable to fraud, misuse, and counterfeiting to permit 
     illegal entry into the United States or false identification. 
     These include travel documents such as Refugee Travel 
     Documents, Re-Entry Permits, Seamen Booklets, and Advance 
     Parole Documents, as well as old identification cards issued 
     to Mexican citizens. The conferees are aware of efforts to 
     improve security of such documents, but believe that far more 
     must be done.
       The conferees direct the Department, in cooperation with 
     the Department of State, to: (1) develop and implement a plan 
     to replace old Mexican identification cards by September 30, 
     2004; and (2) initiate a pilot program to develop tamper-
     proof documents. That program should take into account all 
     relevant current and planned International Civil Aviation 
     Organization standards, and incorporate security features 
     such as biometrics (including fingerprint and photograph 
     templates) as well as embedded contactless programmable 
     chips. In addition, such a program should be carried out in 
     consultation with the Forensic Development Laboratory of the 
     Bureau of Immigration and Customs Enforcement.


                          contract management

       The conferees are troubled by a July 2003 General 
     Accounting Office (GAO) report that outlined significant 
     contracting weakness within legacy INS agencies, including 
     functions transferred to BCIS. Among other problems, the GAO 
     found that agencies lacked basic infrastructure for contract 
     management and oversight, and documented a lack of 
     procurement coordination. The contract for records management 
     services at the regional support centers in California, 
     Vermont, Texas, and Nebraska is an example of a critical 
     activity dependent on competent oversight. The GAO 
     recommended that the Department undertake a number of 
     significant steps to ensure adequate oversight, management, 
     and staffing for procurement, to include use of cross-
     functional acquisition teams, procurement performance 
     measures, and upgrading procurement and financial information 
     systems. As the Department has agreed to proceed in 
     accordance with the GAO recommendations, the conferees direct 
     that the Department submit a report to the Committees on 
     Appropriations not later than April 1, 2004, on its specific 
     plans and timetable for implementing these recommendations.


                       offsetting fee collections

       Current estimates of examination fee collections, which 
     constitute the majority of BCIS offsetting resources, are 
     $1,564,000,000. These support the adjudication of 
     applications for immigration benefits and would be derived 
     from fees collected from persons applying for immigration 
     benefits. Operations are heavily dependent on a variety of 
     fees to offset operations, particularly the Immigration 
     Examination Fee. The fluctuation of these fees can adversely 
     affect operations if allowances are not made for prioritizing 
     spending. The conferees direct BCIS to ensure that it fully 
     funds current, ongoing base operations that are fee-supported 
     before undertaking new initiatives. The conferees also agree 
     to correct page 57 of House Report 108-169 to delete the 
     reference to the Microfilm Rescue Project.
       The following table displays how the conferees expect these 
     fees will be applied:

Citizenship and Immigration Services, Offsetting Collections:
  Backlog Elimination Initiative............................$20,000,000
  Telephone Customer Service Center Operations...............43,000,000
  Digitization Projects......................................20,400,000
  Other Immigration Staffing and Operations...............1,480,600,000
                                                       ________________
                                                       
    Total, Citizenship and Immigration Services, Offsettin1,564,000,000

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES

       The conferees agree to provide $155,423,000, instead of 
     $136,629,000 as proposed by the House and $172,736,000 as 
     proposed by the Senate. The additional $33,044,000 provided 
     above the budget request is to be used for expenses related 
     to the anticipated growth in student weeks of basic training 
     ($32,120,000), including retention of 130 instructors first 
     provided in fiscal year 2003, and to offset a portion of the 
     costs of the fiscal year 2004 4.1 percent pay parity 
     ($924,000). Within this total, $36,174,000 is for materials 
     and support and not to exceed $12,000 may be used for 
     official reception and representation expenses. The conferees 
     also include bill language authorizing reimbursement for the 
     use of personal cellular phones for official duties, as 
     proposed by the House. Funds in this account are available 
     until September 30, 2005, as proposed by the Senate, instead 
     of September 30, 2006, as proposed by the House.


     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

       The conferees agree to provide $37,357,000, instead of 
     $32,323,000 as proposed by the House and $28,708,000 as 
     proposed by the Senate. Funds above the budget request 
     (+$13,678,000) are for priorities at the Center's facilities 
     in Cheltenham, Maryland, and Artesia, New Mexico. The 
     conference agreement includes bill language that authorizes 
     the Center to accept reimbursements from government agencies 
     requesting construction of special use facilities operated by 
     the Federal Law Enforcement Training Center, as proposed by 
     the House. The Senate bill contained no similar provision.

           Information Analysis and Infrastructure Protection


                     MANAGEMENT AND ADMINISTRATION

       The conferees agree to provide $125,000,000 for management 
     and administration. The Senate proposed $10,460,000 for the 
     Office of the Under Secretary for Information Analysis and 
     Infrastructure Protection (IAIP) and the House proposed this 
     funding under Title I. The funding recommendation includes 
     $4,800,000 for the Office of the Under Secretary; 
     $100,200,000 for other salaries and expenses for federal 
     employees in the IAIP directorate; and $20,000,000 for the 
     Department's command center. The House and Senate provided 
     funding for the command center in two separate accounts, as 
     requested. The conference agreement consolidates this funding 
     within the IAIP management and administration program. Within 
     the funds provided for the Office of the Under Secretary, 
     travel expenses may not exceed $231,000.
       The conferees want to ensure that personnel requirements 
     for critical intelligence positions are met and direct the 
     Department to submit a report by December 15, 2003, on plans 
     to meet the personnel requirements of the IAIP directorate, 
     improve communications and disseminate information between 
     the directorate and the intelligence community, and improve 
     coordination between the directorate and state and local 
     public safety entities. This report should include the 
     specific manpower details requested in the House report.


                      ASSESSMENTS AND EVALUATIONS

       The conferees agree to provide $714,300,000 for assessments 
     and evaluations instead of $776,000,000 as proposed by the 
     House and $823,700,000 as proposed by the Senate. All funding 
     for federal salaries and expenses has been moved from the 
     individual programs, as proposed by the House, and is 
     provided in the management and administration account. Funds 
     in this account are available until September 30, 2005.


                  Threat Determination and Assessment

       The conferees agree to provide $28,400,000 as proposed by 
     the House.


                   Information and Warning Advisories

       The conferees agree to provide $52,300,000, of which 
     $32,800,000 is for cybersecurity, as proposed by the Senate.
       The conference agreement includes the use of $10,000,000 
     within information and warning advisories funding to better 
     develop a national alert system to notify the general public 
     in the event of a terrorist attack. Redundancy in the 
     dissemination of warnings is essential. The conferees are 
     aware of the capabilities of the National Oceanic and 
     Atmospheric Administration (NOAA) nationwide radio network 
     and direct the Under

[[Page 22686]]

      Secretary to report to the Committees on Appropriations by 
     December 15, 2003, on the immediate use of the NOAA radio 
     network as a key component of the warning systems, measures 
     to expand consumer access to the warning systems, and efforts 
     to educate and inform the public about the existence of this 
     warning system.
       The Under Secretary should consult with the Chairman of the 
     Federal Communications Commission to develop the best way to 
     communicate with the general public during threat alerts by 
     using a full range of communication devices, such as wireline 
     and cellular telephones, e-mail and instant messaging 
     systems, radio and television broadcasts, and personal 
     digital assistants. To the extent possible, the Department 
     should incorporate existing federal, state, and local alert 
     systems and consult with state and local public safety and 
     emergency preparedness agencies.
       The conferees direct the Under Secretary to report to the 
     Committees on Appropriations by December 15, 2003, on 
     proposed improvements to the Homeland Security Advisory 
     System including an assessment of how the system is 
     fulfilling its intended missions, and an evaluation of 
     progress being made to tailor the system so that alerts are 
     raised on a regional rather than national basis.


            Infrastructure Vulnerability and Risk Assessment

       The conferees agree to provide $84,200,000 as proposed by 
     the House.


                   Remediation and Protective Actions

       The conferees agree to provide $345,100,000. Funding of 
     $3,900,000 is provided for the critical infrastructure 
     information management office to establish a program to 
     enable and manage the sharing of critical infrastructure 
     information among federal, state, local, and private sector 
     homeland security officials. The office is to develop and 
     deploy information management tools and techniques to provide 
     quick, complete access to information relevant to the 
     protection of physical and cyber critical infrastructure.
       The conference agreement provides $172,700,000 for 
     vulnerability field assessments. In scheduling and performing 
     vulnerability assessments of critical infrastructure and key 
     assets, the conferees expect the Department to ensure that 
     public assembly facilities are also addressed.
       Funding of $65,700,000 is provided for cybersecurity, as 
     proposed by the Senate, and $8,000,000 is provided for 
     protection standards and performance metrics.
       The conferees are aware that the Department of Energy and 
     the Nuclear Regulatory Commission are reviewing and analyzing 
     the safety and security of spent nuclear fuel storage at 
     commercial nuclear power plants. The Under Secretary is 
     directed to perform an independent review and analyses of 
     this information as it becomes available.


                     National Communications System

       The conferees agree to provide $141,000,000 as proposed by 
     the House.


                      Administration and Outreach

       For administration and outreach programs, the conferees 
     agree to provide $18,900,000 for competitive analysis and 
     evaluation, $3,500,000 for national plans and strategies, and 
     $40,900,000 for outreach and partnerships, as proposed by the 
     House.


                       Conference Funding Levels


        Program                                                  Amount
Threat determination and assessment.........................$28,400,000
Information and warning advisories...........................52,300,000
Infrastructure vulnerability and risk assessment.............84,200,000
Remediation and protective actions..........................345,100,000
National communications system..............................141,000,000
Competitive analysis and evaluation..........................18,900,000
National plans and strategies.................................3,500,000
Outreach and partnerships....................................40,900,000
                                                       ________________
                                                       
    Total, Assessments and Evaluations......................714,300,000

                         Science and Technology


                     MANAGEMENT AND ADMINISTRATION

       The conferees agree to provide $44,168,000 for management 
     and administration instead of $5,400,000 as proposed by the 
     Senate solely for the Office of the Under Secretary for 
     Science and Technology. The House provided funding for this 
     office under Title I. The funding recommendation includes 
     $5,168,000 for the immediate Office of the Under Secretary 
     and $39,000,000 for other salaries and expenses for federal 
     employees in the Science and Technology directorate. Within 
     the funds provided for the Office of the Under Secretary, 
     travel expenses may not exceed $250,000.


           RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

       The conferees agree to provide $874,000,000 for research, 
     development, acquisition, and operations instead of 
     $900,360,000 as proposed by the House and $866,000,000 as 
     proposed by the Senate. The recommendation includes the use 
     of $68,000,000 of prior year unobligated funds that will 
     remain available for use in fiscal year 2004. All funding for 
     federal salaries and expenses has been moved from the 
     individual programs, as proposed by the House, and is 
     provided in the management and administration account. Funds 
     in this account are available until expended, as proposed by 
     the Senate.
       The conferees are concerned that research and development 
     is being conducted independently by each of the Department's 
     legacy components leading to duplicative research activities, 
     wasted funds, and lack of appropriate management oversight. 
     The Department is directed to consolidate all Departmental 
     research and development funding within the science and 
     technology programs in the fiscal year 2005 budget request.


                       Biological Countermeasures

       The conference agreement includes $198,500,000 and the use 
     of $68,000,000 of prior year unobligated funds that will 
     remain available for use in fiscal year 2004. This funding 
     level supports the budget request for the individual programs 
     within biological countermeasures with the following 
     exceptions: $18,500,000 is transferred to management and 
     administration for federal salaries and expenses; an 
     additional $15,000,000 is provided for the urban monitoring 
     program; signatures and bioassays is reduced by $5,000,000; 
     and $88,000,000 for construction of the National Biodefense 
     Analysis and Countermeasures Center is funded as a separate 
     program.


                nuclear and radiological countermeasures

       The conference agreement includes $127,000,000. This 
     supports the budget request with the following exceptions: 
     $7,000,000 is transferred to management and administration 
     for federal salaries and expenses, and sensor research and 
     development is reduced by $3,000,000.


              chemical and high explosives countermeasures

       The conference agreement includes $52,000,000 for chemical 
     countermeasures and $9,500,000 for high explosives 
     countermeasures, as proposed by the House.


            threat and vulnerability, testing and assessment

       The conference agreement includes $93,500,000. This 
     supports the budget request with the following exceptions: 
     $4,500,000 is transferred to management and administration 
     for federal salaries and expenses; cybersecurity is increased 
     by $11,000,000; and the remaining programs are reduced by a 
     total of $3,000,000.


                conventional missions in support of dhs

       The conference agreement includes $34,000,000, allocated as 
     follows: $25,000,000 for border and transportation security; 
     $2,000,000 for the Secret Service; and $10,000,000 for 
     emergency preparedness and response. Funding of $3,000,000 is 
     transferred to management and administration for federal 
     salaries and expenses.


       rapid prototyping program/technical support working group

       The conference agreement includes $75,000,000, an increase 
     of $45,000,000 over the budget request of $30,000,000. The 
     conferees encourage Science and Technology to evaluate 
     information sharing proposals between the law enforcement and 
     intelligence communities.


                   standards/state and local program

       The conference agreement includes $39,000,000, as proposed 
     by the House, which transfers $15,000,000 for development of 
     standards from the Office for Domestic Preparedness (ODP). 
     The conferees expect all standards development in the 
     Department to be done by Science and Technology. Working with 
     the public and private sectors, Science and Technology will 
     develop a network of security certification laboratories to 
     provide a consistent level of assurance in the effectiveness 
     of homeland security technologies, systems, and equipment, 
     and allow state and local governments to make better informed 
     decisions on equipment needs. The conferees direct Science 
     and Technology to continue the standards program established 
     by ODP in coordination with the National Institute of 
     Standards and Technology (NIST), consistent with the fiscal 
     year 2003 budget directive and the 5-year plan for 
     development with NIST.
       The conferees support House language regarding search and 
     rescue robotics certification and expect the Department to 
     develop standards and criteria for search and robotics 
     certification.
       In preparing the report requested by the House on 
     narrowbanding, Science and Technology is directed to consult 
     with the Department of Commerce, the National 
     Telecommunications and Information Administration, the 
     Department of Justice, the Department of Treasury, and major 
     organizations that support state and local public safety 
     agencies.
       The conferees support incorporation by SAFECOM of Project 
     25 technical standards where applicable, and encourage 
     continued involvement of the user community in development 
     and implementation of standards such as those being developed 
     by Project 25 which allow for backward compatibility with 
     existing digital and analog systems and provide for 
     interoperability in future systems.

[[Page 22687]]




                            emerging threats

       The conferees agree to provide $21,000,000 as proposed by 
     the House.


                   critical infrastructure protection

       The conferees agree to provide $66,500,000, of which 
     $60,000,000 is provided for research, development, testing, 
     and evaluation of an anti-missile device for commercial 
     aircraft. Funding of $500,000 is transferred to management 
     and administration for federal salaries and expenses.


        university program/homeland security fellowship programs

       The conferees agree to provide $70,000,000, an increase of 
     $60,000,000 over the budget request of $10,000,000, to 
     establish a university- based system to enhance the nation's 
     homeland security efforts. The conferees encourage the 
     Department to consider all colleges and universities that 
     meet the requirements of 6 U.S.C. 188 in the selection of 
     university-based centers, including historically black 
     colleges and universities, tribal colleges, Hispanic-serving 
     institutions, and Alaskan Native-serving institutions.


        national biodefense analysis and countermeasures center

       The conferees agree to provide $88,000,000 to initiate 
     construction of a National Biodefense Analysis and 
     Countermeasures Center that is to be the principal Department 
     of Homeland Security component of the Fort Detrick 
     Interagency Biodefense Campus in Maryland.


                       conference funding levels


        Program                                                  Amount
Biological countermeasures.................................$198,500,000
Nuclear and radiological countermeasures....................127,000,000
Chemical countermeasures.....................................52,000,000
High explosives countermeasures...............................9,500,000
Threat and vulnerability, testing and assessment.............93,500,000
Conventional missions in support of DHS......................34,000,000
Rapid prototyping/Technical support working group............75,000,000
Standards/State and local program............................39,000,000
Emerging threats.............................................21,000,000
Critical infrastructure protection...........................66,500,000
University programs/homeland security fellowships.............70,00,000
National Biodefense Analysis and Countermeasures Center......88,000,000
                                                       ________________
                                                       
    Total, Assessments and Evaluations......................874,000,000

                      TITLE V--GENERAL PROVISIONS


                     (including transfer of funds)

       Section 501. The conferees agree to a provision that no 
     part of any appropriation shall remain available for 
     obligation beyond the current year unless expressly provided.
       Section 502. The conferees agree to a provision that 
     unexpended balances of prior appropriations may be merged 
     with new appropriation accounts and used for the same 
     purpose, subject to reprogramming guidelines.
       Section 503. The conferees agree to a provision that 
     provides reprogramming authority for funds within an account 
     and not to exceed 5 percent transfer authority between 
     appropriation accounts with the requirement for a 15-day 
     advance Congressional notification. A detailed funding table 
     identifying each Congressional control level for 
     reprogramming purposes is included at the end of the 
     statement of the managers. These reprogramming guidelines 
     shall be complied with by all agencies funded by the 
     Department of Homeland Security Appropriations Act, 2004.
       The conferees expect the Department to submit reprogramming 
     requests on a timely basis and not wait until the end of the 
     fiscal year in an attempt to use funds that would otherwise 
     expire. Any reprogramming that is submitted within 45 days of 
     the end of the fiscal year must be due to exceptional or 
     emergency circumstances. Additionally, the conferees are 
     concerned that reprogramming requests submitted to date by 
     the Department have not been sufficiently documented. 
     Justifications have been incomplete and explanations of 
     funding offsets have been inadequate requiring time consuming 
     follow-up questions and briefings. The conferees expect the 
     Department to review its internal reprogramming process to 
     correct these deficiencies in fiscal year 2004.
       Section 504. The conferees agree to a provision that not to 
     exceed 50 percent of unobligated balances remaining at the 
     end of fiscal year 2004 from appropriations made for salaries 
     and expenses shall remain available through fiscal year 2005 
     subject to reprogramming guidelines.
       Section 505. The conferees agree to a provision that allows 
     the use of funds for: purchase of uniforms without regard to 
     the general purchase price limitation, purchase of insurance 
     for official vehicles in foreign countries, entering into 
     contracts with the State Department for furnishing health and 
     medical services to employees serving in foreign countries, 
     hire and purchase of motor vehicles, and purchase of police-
     type passenger vehicles without regard to the general 
     purchase price limitation, and make this provision permanent.
       Section 506. The conferees agree to a provision that 
     converts the Federal Emergency Management Agency ``Working 
     Capital Fund'' to the ``Department of Homeland Security 
     Working Capital Fund''.
       Section 507. The conferees agree to a provision that 
     converts the Federal Emergency Management Agency ``Bequests 
     and Gifts'' account to the ``Department of Homeland Security, 
     Gifts and Donations'' account.
       Section 508. The conferees agree to a provision that 
     provides that funds for intelligence activities are deemed to 
     be specifically authorized during fiscal year 2004 until the 
     enactment of an Act authorizing intelligence activities for 
     fiscal year 2004.
       Section 509. The conferees agree to a provision that 
     directs the Federal Law Enforcement Training Center to 
     establish an accrediting body to establish standards for 
     assessing federal law enforcement training programs, 
     facilities, and instructors.
       Section 510. The conferees agree to a provision that 
     requires notification of the Committees on Appropriations 3 
     days before any grant allocation, discretionary grant award, 
     or letter of intent totaling $1,000,000 or more is announced 
     by the Department.
       Section 511. The conferees agree to a provision that no 
     agency shall purchase, construct, or lease additional 
     facilities for federal law enforcement training without 
     advance approval of the Committees on Appropriations.
       Section 512. The conferees agree to a provision that 
     requires the Director of the Federal Law Enforcement Training 
     Center to ensure that all training facilities are operated at 
     optimal capacity throughout the fiscal year.
       Section 513. The conferees agree to a provision that none 
     of the funds may be used to produce customs declarations that 
     do not inquire whether a passenger has been in proximity to 
     livestock, and make this provision permanent.
       Section 514. The conferees agree to a provision that none 
     of the funds may be used for any activity or to pay the 
     salary of any government employee if that would result in a 
     determination, regulation, or policy that would prohibit 
     enforcement of section 307 of the Tariff Act of 1930, and 
     make this provision permanent.
       Section 515. The conferees agree to a provision that none 
     of the funds may be used to import goods that have been 
     produced by forced or indentured child labor, and make this 
     provision permanent.
       Section 516. The conferees agree to a provision that none 
     of the funds may be used for any construction, repair, 
     alteration, and acquisition project for which a prospectus, 
     if required by the Public Buildings Act of 1959, has not been 
     approved.
       Section 517. The conferees agree to a provision that none 
     of the funds may be used to require airport sponsors to 
     provide building modifications, utilities and expenses, or 
     space to the Transportation Security Administration without 
     cost for services related to aviation security.
       Section 518. The conferees agree to a provision that none 
     of the funds may be used in contravention of the Buy American 
     Act.
       Section 519. The conferees modify a provision related to 
     the Computer Assisted Passenger Prescreening System (CAPPS 
     II). The provision prohibits the use of funds for deployment 
     or implementation of CAPPS II until certain conditions are 
     met.
       Section 520. The conferees agree to a provision that the 
     Secretary of Homeland Security shall charge reasonable fees 
     for providing credentialing and background investigations for 
     transportation purposes, and may credit the fees to the 
     appropriation available for that purpose, and make this 
     provision permanent.
       Section 521. The conferees modify a provision regarding the 
     inspection of air cargo.


                         Provisions Not Adopted

       The conference agreement deletes section 604 of the Senate 
     bill providing that no Departmental employee may be detailed 
     to another component without compensation. This requirement 
     is addressed in the statement of managers.
       The conference agreement deletes section 606 of the Senate 
     bill providing a single official reception and representation 
     expenses account. These funds have been provided in separate 
     accounts.
       The conference agreement deletes section 616 of the Senate 
     bill requiring a report on countermeasures against shoulder-
     fired missile systems. This requirement is addressed in the 
     statement of managers.
       The conference agreement deletes section 617 of the Senate 
     bill requiring a report on security costs incurred by state 
     and local law enforcement offices for visits by foreign and 
     domestic officials.
       The conference agreement deletes section 619 of the Senate 
     bill requiring a report on the Homeland Security Advisory 
     System. This requirement is addressed in the statement of 
     managers.
       The conference agreement deletes section 620 of the Senate 
     bill expressing the sense of the Senate that tourist 
     populations should be factored into grant allocations.
       The conference agreement deletes section 621 of the Senate 
     bill requesting a review of

[[Page 22688]]

     damage claims from the University of North Dakota.
       The conference agreement deletes section 622 of the Senate 
     bill requiring a report on state and local law enforcement 
     access to the ``Tipoff'' database.
       The conference agreement deletes section 623 of the Senate 
     bill requiring a report on information technology 
     infrastructure. This requirement is addressed in the 
     statement of managers.
       The conference agreement deletes section 624 of the Senate 
     bill prohibiting use of funds for companies that incorporate 
     overseas.
       The conference agreement deletes section 625 of the Senate 
     bill requiring the department to ensure active minority 
     institution participation in the university research program. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 626 of the Senate 
     bill requiring a report on enhancing operations of the 
     Information Analysis and Infrastructure Protection program. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 627 of the Senate 
     bill requiring a report on all data-mining programs.
       The conference agreement deletes section 628 of the Senate 
     bill directing the Secretary to consider unique geographical 
     needs when establishing priorities for firefighting vehicles. 
     This requirement is addressed in the statement of managers.
       The conference agreement deletes section 629 of the Senate 
     bill requiring a report on the status of air traffic control 
     communications. This requirement is addressed in the 
     statement of managers.

                       Conference Recommendations

       The conference agreement's detailed funding recommendations 
     for programs in this bill are contained in the following 
     table:

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     Harold Rogers,
     C.W. Bill Young,
     Frank R. Wolf,
     Zach Wamp,
     Tom Latham,
     Jo Ann Emerson,
     Kay Granger,
     John E. Sweeney,
     Don Sherwood,
     Martin Olav Sabo,
     David E. Price,
     Jose E. Serrano,
     Lucille Roybal-Allard,
     Marion Berry,
     Alan B. Mollohan,
                                Managers on the Part of the House.

     Thad Cochran,
     Ted Stevens,
     Arlen Specter,
     Pete V. Domenici,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Ben Nighthorse Campbell,
     Larry Craig,
     Robert C. Byrd,
     Daniel K. Inouye,
     Ernest F. Hollings,
     Patrick J. Leahy,
     Tom Harkin,
     Barbara A. Mikulski,
     Herb Kohl,
     Patty Murray,
     Managers on the Part of the Senate.

                          ____________________