[Congressional Record (Bound Edition), Volume 153 (2007), Part 15]
[House]
[Pages 20642-20756]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFERENCE REPORT ON H.R. 1, IMPLEMENTING RECOMMENDATIONS OF THE 9/11 
                         COMMISSION ACT OF 2007

  Mr. THOMPSON of Mississippi submitted the following conference report 
and statement on the bill (H.R. 1) to provide for the implementation of 
the recommendations of the National Commission on Terrorist Attacks 
Upon the United States:

                  Conference Report (H. Rept. 110-259)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     1), to provide for the implementation of the recommendation 
     of the National Commission on Terrorist Attacks Upon the 
     United States, 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 proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Implementing Recommendations of the 9/11 Commission Act of 
     2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                   TITLE I--HOMELAND SECURITY GRANTS

Sec. 101. Homeland Security Grant Program.
Sec. 102. Other amendments to the Homeland Security Act of 2002.
Sec. 103. Amendments to the Post-Katrina Emergency Management Reform 
              Act of 2006.
Sec. 104. Technical and conforming amendments.

           TITLE II--EMERGENCY MANAGEMENT PERFORMANCE GRANTS

Sec. 201. Emergency management performance grant program.
Sec. 202. Grants for construction of emergency operations centers.

     TITLE III--ENSURING COMMUNICATIONS INTEROPERABILITY FOR FIRST 
                               RESPONDERS

Sec. 301. Interoperable emergency communications grant program.

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Sec. 302. Border interoperability demonstration project.

       TITLE IV--STRENGTHENING USE OF THE INCIDENT COMMAND SYSTEM

Sec. 401. Definitions.
Sec. 402. National exercise program design.
Sec. 403. National exercise program model exercises.
Sec. 404. Preidentifying and evaluating multijurisdictional facilities 
              to strengthen incident command; private sector 
              preparedness.
Sec. 405. Federal response capability inventory.
Sec. 406. Reporting requirements.
Sec. 407. Federal preparedness.
Sec. 408. Credentialing and typing.
Sec. 409. Model standards and guidelines for critical infrastructure 
              workers.
Sec. 410. Authorization of appropriations.

  TITLE V--IMPROVING INTELLIGENCE AND INFORMATION SHARING WITHIN THE 
    FEDERAL GOVERNMENT AND WITH STATE, LOCAL, AND TRIBAL GOVERNMENTS

     Subtitle A--Homeland Security Information Sharing Enhancement

Sec. 501. Homeland Security Advisory System and information sharing.
Sec. 502. Intelligence Component Defined.
Sec. 503. Role of intelligence components, training, and information 
              sharing.
Sec. 504. Information sharing.

     Subtitle B--Homeland Security Information Sharing Partnerships

Sec. 511. Department of Homeland Security State, Local, and Regional 
              Fusion Center Initiative.
Sec. 512. Homeland Security Information Sharing Fellows Program.
Sec. 513. Rural Policing Institute.

    Subtitle C--Interagency Threat Assessment and Coordination Group

Sec. 521. Interagency Threat Assessment and Coordination Group.

   Subtitle D--Homeland Security Intelligence Offices Reorganization

Sec. 531. Office of Intelligence and Analysis and Office of 
              Infrastructure Protection.

              Subtitle E--Authorization of Appropriations

Sec. 541. Authorization of appropriations.

           TITLE VI--CONGRESSIONAL OVERSIGHT OF INTELLIGENCE

Sec. 601. Availability to public of certain intelligence funding 
              information.
Sec. 602. Public Interest Declassification Board.
Sec. 603. Sense of the Senate regarding a report on the 9/11 Commission 
              recommendations with respect to intelligence reform and 
              congressional intelligence oversight reform.
Sec. 604. Availability of funds for the Public Interest 
              Declassification Board.
Sec. 605. Availability of the Executive Summary of the Report on 
              Central Intelligence Agency Accountability Regarding the 
              Terrorist Attacks of September 11, 2001.

      TITLE VII--STRENGTHENING EFFORTS TO PREVENT TERRORIST TRAVEL

                      Subtitle A--Terrorist Travel

Sec. 701. Report on international collaboration to increase border 
              security, enhance global document security, and exchange 
              terrorist information.

                        Subtitle B--Visa Waiver

Sec. 711. Modernization of the visa waiver program.

        Subtitle C--Strengthening Terrorism Prevention Programs

Sec. 721. Strengthening the capabilities of the Human Smuggling and 
              Trafficking Center.
Sec. 722. Enhancements to the terrorist travel program.
Sec. 723. Enhanced driver's license.
Sec. 724. Western Hemisphere Travel Initiative.
Sec. 725. Model ports-of-entry.

                  Subtitle D--Miscellaneous Provisions

Sec. 731. Report regarding border security.

                TITLE VIII--PRIVACY AND CIVIL LIBERTIES

Sec. 801. Modification of authorities relating to Privacy and Civil 
              Liberties Oversight Board.
Sec. 802. Department Privacy Officer.
Sec. 803. Privacy and civil liberties officers.
Sec. 804. Federal Agency Data Mining Reporting Act of 2007.

                 TITLE IX--PRIVATE SECTOR PREPAREDNESS

Sec. 901. Private sector preparedness.
Sec. 902. Responsibilities of the private sector Office of the 
              Department.

          TITLE X--IMPROVING CRITICAL INFRASTRUCTURE SECURITY

Sec. 1001. National Asset Database.
Sec. 1002. Risk assessments and report.
Sec. 1003. Sense of Congress regarding the inclusion of levees in the 
              National Infrastructure Protection Plan.

    TITLE XI--ENHANCED DEFENSES AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1101. National Biosurveillance Integration Center.
Sec. 1102. Biosurveillance efforts.
Sec. 1103. Interagency coordination to enhance defenses against nuclear 
              and radiological weapons of mass destruction.
Sec. 1104. Integration of detection equipment and technologies.

  TITLE XII--TRANSPORTATION SECURITY PLANNING AND INFORMATION SHARING

Sec. 1201. Definitions.
Sec. 1202. Transportation security strategic planning.
Sec. 1203. Transportation security information sharing.
Sec. 1204. National domestic preparedness consortium.
Sec. 1205. National transportation security center of excellence.
Sec. 1206. Immunity for reports of suspected terrorist activity or 
              suspicious behavior and response.

            TITLE XIII--TRANSPORTATION SECURITY ENHANCEMENTS

Sec. 1301. Definitions.
Sec. 1302. Enforcement authority.
Sec. 1303. Authorization of visible intermodal prevention and response 
              teams.
Sec. 1304. Surface transportation security inspectors.
Sec. 1305. Surface transportation security technology information 
              sharing.
Sec. 1306. TSA personnel limitations.
Sec. 1307. National explosives detection canine team training program.
Sec. 1308. Maritime and surface transportation security user fee study.
Sec. 1309. Prohibition of issuance of transportation security cards to 
              convicted felons.
Sec. 1310. Roles of the Department of Homeland Security and the 
              Department of Transportation.

               TITLE XIV--PUBLIC TRANSPORTATION SECURITY

Sec. 1401. Short title.
Sec. 1402. Definitions.
Sec. 1403. Findings.
Sec. 1404. National Strategy for Public Transportation Security.
Sec. 1405. Security assessments and plans.
Sec. 1406. Public transportation security assistance.
Sec. 1407. Security exercises.
Sec. 1408. Public transportation security training program.
Sec. 1409. Public transportation research and development.
Sec. 1410. Information sharing.
Sec. 1411. Threat assessments.
Sec. 1412. Reporting requirements.
Sec. 1413. Public transportation employee protections.
Sec. 1414. Security background checks of covered individuals for public 
              transportation.
Sec. 1415. Limitation on fines and civil penalties.

               TITLE XV--SURFACE TRANSPORTATION SECURITY

                     Subtitle A--General Provisions

Sec. 1501. Definitions.
Sec. 1502. Oversight and grant procedures.
Sec. 1503. Authorization of appropriations.
Sec. 1504. Public awareness.

                     Subtitle B--Railroad Security

Sec. 1511. Railroad transportation security risk assessment and 
              national strategy.
Sec. 1512. Railroad carrier assessments and plans.
Sec. 1513. Railroad security assistance.
Sec. 1514. Systemwide Amtrak security upgrades.
Sec. 1515. Fire and life safety improvements.
Sec. 1516. Railroad carrier exercises.
Sec. 1517. Railroad security training program.
Sec. 1518. Railroad security research and development.
Sec. 1519. Railroad tank car security testing.
Sec. 1520. Railroad threat assessments.
Sec. 1521. Railroad employee protections.
Sec. 1522. Security background checks of covered individuals.
Sec. 1523. Northern border railroad passenger report.
Sec. 1524. International Railroad Security Program.
Sec. 1525. Transmission line report.
Sec. 1526. Railroad security enhancements.
Sec. 1527. Applicability of District of Columbia law to certain Amtrak 
              contracts.
Sec. 1528. Railroad preemption clarification.

          Subtitle C--Over-The-Road Bus and Trucking Security

Sec. 1531. Over-the-road bus security assessments and plans.
Sec. 1532. Over-the-road bus security assistance.
Sec. 1533. Over-the-road bus exercises.
Sec. 1534. Over-the-road bus security training program.
Sec. 1535. Over-the-road bus security research and development.
Sec. 1536. Motor carrier employee protections.
Sec. 1537. Unified carrier registration system agreement.
Sec. 1538. School bus transportation security.
Sec. 1539. Technical amendment.
Sec. 1540. Truck security assessment.
Sec. 1541. Memorandum of understanding annex.
Sec. 1542. DHS Inspector General report on trucking security grant 
              program.

          Subtitle D--Hazardous Material and Pipeline Security

Sec. 1551. Railroad routing of security-sensitive materials.
Sec. 1552. Railroad security-sensitive material tracking.

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Sec. 1553. Hazardous materials highway routing.
Sec. 1554. Motor carrier security-sensitive material tracking.
Sec. 1555. Hazardous materials security inspections and study.
Sec. 1556. Technical corrections.
Sec. 1557. Pipeline security inspections and enforcement.
Sec. 1558. Pipeline security and incident recovery plan.

                          TITLE XVI--AVIATION

Sec. 1601. Airport checkpoint screening fund.
Sec. 1602. Screening of cargo carried aboard passenger aircraft.
Sec. 1603. In-line baggage screening.
Sec. 1604. In-line baggage system deployment.
Sec. 1605. Strategic plan to test and implement advanced passenger 
              prescreening system.
Sec. 1606. Appeal and redress process for passengers wrongly delayed or 
              prohibited from boarding a flight.
Sec. 1607. Strengthening explosives detection at passenger screening 
              checkpoints.
Sec. 1608. Research and development of aviation transportation security 
              technology.
Sec. 1609. Blast-resistant cargo containers.
Sec. 1610. Protection of passenger planes from explosives.
Sec. 1611. Specialized training.
Sec. 1612. Certain TSA personnel limitations not to apply.
Sec. 1613. Pilot project to test different technologies at airport exit 
              lanes.
Sec. 1614. Security credentials for airline crews.
Sec. 1615. Law enforcement officer biometric credential.
Sec. 1616. Repair station security.
Sec. 1617. General aviation security.
Sec. 1618. Extension of authorization of aviation security funding.

                       TITLE XVII--MARITIME CARGO

Sec. 1701. Container scanning and seals.

 TITLE XVIII--PREVENTING WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                               TERRORISM

Sec. 1801. Findings.
Sec. 1802. Definitions.

 Subtitle A--Repeal and Modification of Limitations on Assistance for 
             Prevention of WMD Proliferation and Terrorism

Sec. 1811. Repeal and modification of limitations on assistance for 
              prevention of weapons of mass destruction proliferation 
              and terrorism.

             Subtitle B--Proliferation Security Initiative

Sec. 1821. Proliferation Security Initiative improvements and 
              authorities.
Sec. 1822. Authority to provide assistance to cooperative countries.

  Subtitle C--Assistance to Accelerate Programs to Prevent Weapons of 
              Mass Destruction Proliferation and Terrorism

Sec. 1831. Statement of policy.
Sec. 1832. Authorization of appropriations for the Department of 
              Defense Cooperative Threat Reduction Program.
Sec. 1833. Authorization of appropriations for the Department of Energy 
              programs to prevent weapons of mass destruction 
              proliferation and terrorism.

Subtitle D--Office of the United States Coordinator for the Prevention 
       of Weapons of Mass Destruction Proliferation and Terrorism

Sec. 1841. Office of the United States Coordinator for the Prevention 
              of Weapons of Mass Destruction Proliferation and 
              Terrorism.
Sec. 1842. Sense of Congress on United States-Russia cooperation and 
              coordination on the prevention of weapons of mass 
              destruction proliferation and terrorism.

Subtitle E--Commission on the Prevention of Weapons of Mass Destruction 
                      Proliferation and Terrorism

Sec. 1851. Establishment of Commission on the Prevention of Weapons of 
              Mass Destruction Proliferation and Terrorism.
Sec. 1852. Purposes of Commission.
Sec. 1853. Composition of Commission.
Sec. 1854. Responsibilities of Commission.
Sec. 1855. Powers of Commission.
Sec. 1856. Nonapplicability of Federal Advisory Committee Act.
Sec. 1857. Report.
Sec. 1858. Termination.
Sec. 1859. Funding.

   TITLE XIX--INTERNATIONAL COOPERATION ON ANTITERRORISM TECHNOLOGIES

Sec. 1901. Promoting antiterrorism capabilities through international 
              cooperation.
Sec. 1902. Transparency of funds.

         TITLE XX--9/11 COMMISSION INTERNATIONAL IMPLEMENTATION

Sec. 2001. Short title.
Sec. 2002. Definition.

 Subtitle A--Quality Educational Opportunities in Predominantly Muslim 
                               Countries.

Sec. 2011. Findings; Policy.
Sec. 2012. International Muslim Youth Opportunity Fund.
Sec. 2013. Annual report to Congress.
Sec. 2014. Extension of program to provide grants to American-sponsored 
              schools in predominantly Muslim Countries to provide 
              scholarships.

Subtitle B--Democracy and Development in the Broader Middle East Region

Sec. 2021. Middle East Foundation.

         Subtitle C--Reaffirming United States Moral Leadership

Sec. 2031. Advancing United States interests through public diplomacy.
Sec. 2032. Oversight of international broadcasting.
Sec. 2033. Expansion of United States scholarship, exchange, and 
              library programs in predominantly Muslim countries.
Sec. 2034. United States policy toward detainees.

     Subtitle D--Strategy for the United States Relationship With 
                Afghanistan, Pakistan, and Saudi Arabia

Sec. 2041. Afghanistan.
Sec. 2042. Pakistan.
Sec. 2043. Saudi Arabia.

                 TITLE XXI--ADVANCING DEMOCRATIC VALUES

Sec. 2101. Short title.
Sec. 2102. Findings.
Sec. 2103. Statement of policy.
Sec. 2104. Definitions.

      Subtitle A--Activities to Enhance the Promotion of Democracy

Sec. 2111. Democracy Promotion at the Department of State.
Sec. 2112. Democracy Fellowship Program.
Sec. 2113. Investigations of violations of international humanitarian 
              law.

Subtitle B--Strategies and Reports on Human Rights and the Promotion of 
                               Democracy

Sec. 2121. Strategies, priorities, and annual report.
Sec. 2122. Translation of human rights reports.

Subtitle C--Advisory Committee on Democracy Promotion and the Internet 
                   Website of the Department of State

Sec. 2131. Advisory Committee on Democracy Promotion.
Sec. 2132. Sense of Congress regarding the Internet website of the 
              Department of State.

     Subtitle D--Training in Democracy and Human Rights; Incentives

Sec. 2141. Training in democracy promotion and the protection of human 
              rights.
Sec. 2142. Sense of Congress regarding ADVANCE Democracy Award.
Sec. 2143. Personnel policies at the Department of State.

           Subtitle E--Cooperation With Democratic Countries

Sec. 2151. Cooperation with democratic countries.

             Subtitle F--Funding for Promotion of Democracy

Sec. 2161. The United Nations Democracy Fund.
Sec. 2162. United States democracy assistance programs.

           TITLE XXII--INTEROPERABLE EMERGENCY COMMUNICATIONS

Sec. 2201. Interoperable emergency communications.
Sec. 2202. Clarification of congressional intent.
Sec. 2203. Cross border interoperability reports.
Sec. 2204. Extension of short quorum.
Sec. 2205. Requiring reports to be submitted to certain committees.

          TITLE XXIII--EMERGENCY COMMUNICATIONS MODERNIZATION

Sec. 2301. Short title.
Sec. 2302. Funding for program.
Sec. 2303. NTIA coordination of E-911 implementation.

                  TITLE XXIV--MISCELLANEOUS PROVISIONS

Sec. 2401. Quadrennial homeland security review.
Sec. 2402. Sense of the Congress regarding the prevention of 
              radicalization leading to ideologically-based violence.
Sec. 2403. Requiring reports to be submitted to certain committees.
Sec. 2404. Demonstration project.
Sec. 2405. Under Secretary for Management of Department of Homeland 
              Security.

                   TITLE I--HOMELAND SECURITY GRANTS

     SEC. 101. HOMELAND SECURITY GRANT PROGRAM.

       The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is 
     amended by adding at the end the following:

                  ``TITLE XX--HOMELAND SECURITY GRANTS

     ``SEC. 2001. DEFINITIONS.

       ``In this title, the following definitions shall apply:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Emergency Management Agency.
       ``(2) Appropriate committees of congress.--The term 
     `appropriate committees of Congress' means--
       ``(A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       ``(B) those committees of the House of Representatives that 
     the Speaker of the House of Representatives determines 
     appropriate.
       ``(3) Critical infrastructure sectors.--The term `critical 
     infrastructure sectors' means the

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     following sectors, in both urban and rural areas:
       ``(A) Agriculture and food.
       ``(B) Banking and finance.
       ``(C) Chemical industries.
       ``(D) Commercial facilities.
       ``(E) Commercial nuclear reactors, materials, and waste.
       ``(F) Dams.
       ``(G) The defense industrial base.
       ``(H) Emergency services.
       ``(I) Energy.
       ``(J) Government facilities.
       ``(K) Information technology.
       ``(L) National monuments and icons.
       ``(M) Postal and shipping.
       ``(N) Public health and health care.
       ``(O) Telecommunications.
       ``(P) Transportation systems.
       ``(Q) Water.
       ``(4) Directly eligible tribe.--The term `directly eligible 
     tribe' means--
       ``(A) any Indian tribe--
       ``(i) that is located in the continental United States;
       ``(ii) that operates a law enforcement or emergency 
     response agency with the capacity to respond to calls for law 
     enforcement or emergency services;
       ``(iii)(I) that is located on or near an international 
     border or a coastline bordering an ocean (including the Gulf 
     of Mexico) or international waters;
       ``(II) that is located within 10 miles of a system or asset 
     included on the prioritized critical infrastructure list 
     established under section 210E(a)(2) or has such a system or 
     asset within its territory;
       ``(III) that is located within or contiguous to 1 of the 50 
     most populous metropolitan statistical areas in the United 
     States; or
       ``(IV) the jurisdiction of which includes not less than 
     1,000 square miles of Indian country, as that term is defined 
     in section 1151 of title 18, United States Code; and
       ``(iv) that certifies to the Secretary that a State has not 
     provided funds under section 2003 or 2004 to the Indian tribe 
     or consortium of Indian tribes for the purpose for which 
     direct funding is sought; and
       ``(B) a consortium of Indian tribes, if each tribe 
     satisfies the requirements of subparagraph (A).
       ``(5) Eligible metropolitan area.--The term `eligible 
     metropolitan area' means any of the 100 most populous 
     metropolitan statistical areas in the United States.
       ``(6) High-risk urban area.--The term `high-risk urban 
     area' means a high-risk urban area designated under section 
     2003(b)(3)(A).
       ``(7) Indian tribe.--The term `Indian tribe' has the 
     meaning given that term in section 4(e) of the Indian Self-
     Determination Act (25 U.S.C. 450b(e)).
       ``(8) Metropolitan statistical area.--The term 
     `metropolitan statistical area' means a metropolitan 
     statistical area, as defined by the Office of Management and 
     Budget.
       ``(9) National special security event.--The term `National 
     Special Security Event' means a designated event that, by 
     virtue of its political, economic, social, or religious 
     significance, may be the target of terrorism or other 
     criminal activity.
       ``(10) Population.--The term `population' means population 
     according to the most recent United States census population 
     estimates available at the start of the relevant fiscal year.
       ``(11) Population density.--The term `population density' 
     means population divided by land area in square miles.
       ``(12) Qualified intelligence analyst.--The term `qualified 
     intelligence analyst' means an intelligence analyst (as that 
     term is defined in section 210A(j)), including law 
     enforcement personnel--
       ``(A) who has successfully completed training to ensure 
     baseline proficiency in intelligence analysis and production, 
     as determined by the Secretary, which may include training 
     using a curriculum developed under section 209; or
       ``(B) whose experience ensures baseline proficiency in 
     intelligence analysis and production equivalent to the 
     training required under subparagraph (A), as determined by 
     the Secretary.
       ``(13) Target capabilities.--The term `target capabilities' 
     means the target capabilities for Federal, State, local, and 
     tribal government preparedness for which guidelines are 
     required to be established under section 646(a) of the Post-
     Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 
     746(a)).
       ``(14) Tribal government.--The term `tribal government' 
     means the government of an Indian tribe.

        ``Subtitle A--Grants to States and High-Risk Urban Areas

     ``SEC. 2002. HOMELAND SECURITY GRANT PROGRAMS.

       ``(a) Grants Authorized.--The Secretary, through the 
     Administrator, may award grants under sections 2003 and 2004 
     to State, local, and tribal governments.
       ``(b) Programs Not Affected.--This subtitle shall not be 
     construed to affect any of the following Federal programs:
       ``(1) Firefighter and other assistance programs authorized 
     under the Federal Fire Prevention and Control Act of 1974 (15 
     U.S.C. 2201 et seq.).
       ``(2) Grants authorized under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
     et seq.).
       ``(3) Emergency Management Performance Grants under the 
     amendments made by title II of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007.
       ``(4) Grants to protect critical infrastructure, including 
     port security grants authorized under section 70107 of title 
     46, United States Code, and the grants authorized under title 
     XIV, XV, and XVI of the Implementing Recommendations of the 
     9/11 Commission Act of 2007 and the amendments made by such 
     titles.
       ``(5) The Metropolitan Medical Response System authorized 
     under section 635 of the Post-Katrina Emergency Management 
     Reform Act of 2006 (6 U.S.C. 723).
       ``(6) The Interoperable Emergency Communications Grant 
     Program authorized under title XVIII.
       ``(7) Grant programs other than those administered by the 
     Department.
       ``(c) Relationship to Other Laws.--
       ``(1) In general.--The grant programs authorized under 
     sections 2003 and 2004 shall supercede all grant programs 
     authorized under section 1014 of the USA PATRIOT Act (42 
     U.S.C. 3714).
       ``(2) Allocation.--The allocation of grants authorized 
     under section 2003 or 2004 shall be governed by the terms of 
     this subtitle and not by any other provision of law.

     ``SEC. 2003. URBAN AREA SECURITY INITIATIVE.

       ``(a) Establishment.--There is established an Urban Area 
     Security Initiative to provide grants to assist high-risk 
     urban areas in preventing, preparing for, protecting against, 
     and responding to acts of terrorism.
       ``(b) Assessment and Designation of High-Risk Urban 
     Areas.--
       ``(1) In general.--The Administrator shall designate high-
     risk urban areas to receive grants under this section based 
     on procedures under this subsection.
       ``(2) Initial assessment.--
       ``(A) In general.--For each fiscal year, the Administrator 
     shall conduct an initial assessment of the relative threat, 
     vulnerability, and consequences from acts of terrorism faced 
     by each eligible metropolitan area, including consideration 
     of--
       ``(i) the factors set forth in subparagraphs (A) through 
     (H) and (K) of section 2007(a)(1); and
       ``(ii) information and materials submitted under 
     subparagraph (B).
       ``(B) Submission of information by eligible metropolitan 
     areas.--Prior to conducting each initial assessment under 
     subparagraph (A), the Administrator shall provide each 
     eligible metropolitan area with, and shall notify each 
     eligible metropolitan area of, the opportunity to--
       ``(i) submit information that the eligible metropolitan 
     area believes to be relevant to the determination of the 
     threat, vulnerability, and consequences it faces from acts of 
     terrorism; and
       ``(ii) review the risk assessment conducted by the 
     Department of that eligible metropolitan area, including the 
     bases for the assessment by the Department of the threat, 
     vulnerability, and consequences from acts of terrorism faced 
     by that eligible metropolitan area, and remedy erroneous or 
     incomplete information.
       ``(3) Designation of high-risk urban areas.--
       ``(A) Designation.--
       ``(i) In general.--For each fiscal year, after conducting 
     the initial assessment under paragraph (2), and based on that 
     assessment, the Administrator shall designate high-risk urban 
     areas that may submit applications for grants under this 
     section.
       ``(ii) Additional areas.--Notwithstanding paragraph (2), 
     the Administrator may--

       ``(I) in any case where an eligible metropolitan area 
     consists of more than 1 metropolitan division (as that term 
     is defined by the Office of Management and Budget) designate 
     more than 1 high-risk urban area within a single eligible 
     metropolitan area; and
       ``(II) designate an area that is not an eligible 
     metropolitan area as a high-risk urban area based on the 
     assessment by the Administrator of the relative threat, 
     vulnerability, and consequences from acts of terrorism faced 
     by the area.

       ``(iii) Rule of construction.--Nothing in this subsection 
     may be construed to require the Administrator to--

       ``(I) designate all eligible metropolitan areas that submit 
     information to the Administrator under paragraph (2)(B)(i) as 
     high-risk urban areas; or
       ``(II) designate all areas within an eligible metropolitan 
     area as part of the high-risk urban area.

       ``(B) Jurisdictions included in high-risk urban areas.--
       ``(i) In general.--In designating high-risk urban areas 
     under subparagraph (A), the Administrator shall determine 
     which jurisdictions, at a minimum, shall be included in each 
     high-risk urban area.
       ``(ii) Additional jurisdictions.--A high-risk urban area 
     designated by the Administrator may, in consultation with the 
     State or States in which such high-risk urban area is 
     located, add additional jurisdictions to the high-risk urban 
     area.
       ``(c) Application.--
       ``(1) In general.--An area designated as a high-risk urban 
     area under subsection (b) may apply for a grant under this 
     section.
       ``(2) Minimum contents of application.--In an application 
     for a grant under this section, a high-risk urban area shall 
     submit--
       ``(A) a plan describing the proposed division of 
     responsibilities and distribution of funding among the local 
     and tribal governments in the high-risk urban area;
       ``(B) the name of an individual to serve as a high-risk 
     urban area liaison with the Department and among the various 
     jurisdictions in the high-risk urban area; and

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       ``(C) such information in support of the application as the 
     Administrator may reasonably require.
       ``(3) Annual applications.--Applicants for grants under 
     this section shall apply or reapply on an annual basis.
       ``(4) State review and transmission.--
       ``(A) In general.--To ensure consistency with State 
     homeland security plans, a high-risk urban area applying for 
     a grant under this section shall submit its application to 
     each State within which any part of that high-risk urban area 
     is located for review before submission of such application 
     to the Department.
       ``(B) Deadline.--Not later than 30 days after receiving an 
     application from a high-risk urban area under subparagraph 
     (A), a State shall transmit the application to the 
     Department.
       ``(C) Opportunity for state comment.--If the Governor of a 
     State determines that an application of a high-risk urban 
     area is inconsistent with the State homeland security plan of 
     that State, or otherwise does not support the application, 
     the Governor shall--
       ``(i) notify the Administrator, in writing, of that fact; 
     and
       ``(ii) provide an explanation of the reason for not 
     supporting the application at the time of transmission of the 
     application.
       ``(5) Opportunity to amend.--In considering applications 
     for grants under this section, the Administrator shall 
     provide applicants with a reasonable opportunity to correct 
     defects in the application, if any, before making final 
     awards.
       ``(d) Distribution of Awards.--
       ``(1) In general.--If the Administrator approves the 
     application of a high-risk urban area for a grant under this 
     section, the Administrator shall distribute the grant funds 
     to the State or States in which that high-risk urban area is 
     located.
       ``(2) State distribution of funds.--
       ``(A) In general.--Not later than 45 days after the date 
     that a State receives grant funds under paragraph (1), that 
     State shall provide the high-risk urban area awarded that 
     grant not less than 80 percent of the grant funds. Any funds 
     retained by a State shall be expended on items, services, or 
     activities that benefit the high-risk urban area.
       ``(B) Funds retained.--A State shall provide each relevant 
     high-risk urban area with an accounting of the items, 
     services, or activities on which any funds retained by the 
     State under subparagraph (A) were expended.
       ``(3) Interstate urban areas.--If parts of a high-risk 
     urban area awarded a grant under this section are located in 
     2 or more States, the Administrator shall distribute to each 
     such State--
       ``(A) a portion of the grant funds in accordance with the 
     proposed distribution set forth in the application; or
       ``(B) if no agreement on distribution has been reached, a 
     portion of the grant funds determined by the Administrator to 
     be appropriate.
       ``(4) Certifications regarding distribution of grant funds 
     to high-risk urban areas.--A State that receives grant funds 
     under paragraph (1) shall certify to the Administrator that 
     the State has made available to the applicable high-risk 
     urban area the required funds under paragraph (2).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this section--
       ``(1) $850,000,000 for fiscal year 2008;
       ``(2) $950,000,000 for fiscal year 2009;
       ``(3) $1,050,000,000 for fiscal year 2010;
       ``(4) $1,150,000,000 for fiscal year 2011;
       ``(5) $1,300,000,000 for fiscal year 2012; and
       ``(6) such sums as are necessary for fiscal year 2013, and 
     each fiscal year thereafter.

     ``SEC. 2004. STATE HOMELAND SECURITY GRANT PROGRAM.

       ``(a) Establishment.--There is established a State Homeland 
     Security Grant Program to assist State, local, and tribal 
     governments in preventing, preparing for, protecting against, 
     and responding to acts of terrorism.
       ``(b) Application.--
       ``(1) In general.--Each State may apply for a grant under 
     this section, and shall submit such information in support of 
     the application as the Administrator may reasonably require.
       ``(2) Minimum contents of application.--The Administrator 
     shall require that each State include in its application, at 
     a minimum--
       ``(A) the purpose for which the State seeks grant funds and 
     the reasons why the State needs the grant to meet the target 
     capabilities of that State;
       ``(B) a description of how the State plans to allocate the 
     grant funds to local governments and Indian tribes; and
       ``(C) a budget showing how the State intends to expend the 
     grant funds.
       ``(3) Annual applications.--Applicants for grants under 
     this section shall apply or reapply on an annual basis.
       ``(c) Distribution to Local and Tribal Governments.--
       ``(1) In general.--Not later than 45 days after receiving 
     grant funds, any State receiving a grant under this section 
     shall make available to local and tribal governments, 
     consistent with the applicable State homeland security plan--
       ``(A) not less than 80 percent of the grant funds;
       ``(B) with the consent of local and tribal governments, 
     items, services, or activities having a value of not less 
     than 80 percent of the amount of the grant; or
       ``(C) with the consent of local and tribal governments, 
     grant funds combined with other items, services, or 
     activities having a total value of not less than 80 percent 
     of the amount of the grant.
       ``(2) Certifications regarding distribution of grant funds 
     to local governments.--A State shall certify to the 
     Administrator that the State has made the distribution to 
     local and tribal governments required under paragraph (1).
       ``(3) Extension of period.--The Governor of a State may 
     request in writing that the Administrator extend the period 
     under paragraph (1) for an additional period of time. The 
     Administrator may approve such a request if the Administrator 
     determines that the resulting delay in providing grant 
     funding to the local and tribal governments is necessary to 
     promote effective investments to prevent, prepare for, 
     protect against, or respond to acts of terrorism.
       ``(4) Exception.--Paragraph (1) shall not apply to the 
     District of Columbia, the Commonwealth of Puerto Rico, 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, Guam, or the Virgin Islands.
       ``(5) Direct funding.--If a State fails to make the 
     distribution to local or tribal governments required under 
     paragraph (1) in a timely fashion, a local or tribal 
     government entitled to receive such distribution may petition 
     the Administrator to request that grant funds be provided 
     directly to the local or tribal government.
       ``(d) Multistate Applications.--
       ``(1) In general.--Instead of, or in addition to, any 
     application for a grant under subsection (b), 2 or more 
     States may submit an application for a grant under this 
     section in support of multistate efforts to prevent, prepare 
     for, protect against, and respond to acts of terrorism.
       ``(2) Administration of grant.--If a group of States 
     applies for a grant under this section, such States shall 
     submit to the Administrator at the time of application a plan 
     describing--
       ``(A) the division of responsibilities for administering 
     the grant; and
       ``(B) the distribution of funding among the States that are 
     parties to the application.
       ``(e) Minimum Allocation.--
       ``(1) In general.--In allocating funds under this section, 
     the Administrator shall ensure that--
       ``(A) except as provided in subparagraph (B), each State 
     receives, from the funds appropriated for the State Homeland 
     Security Grant Program established under this section, not 
     less than an amount equal to--
       ``(i) 0.375 percent of the total funds appropriated for 
     grants under this section and section 2003 in fiscal year 
     2008;
       ``(ii) 0.365 percent of the total funds appropriated for 
     grants under this section and section 2003 in fiscal year 
     2009;
       ``(iii) 0.36 percent of the total funds appropriated for 
     grants under this section and section 2003 in fiscal year 
     2010;
       ``(iv) 0.355 percent of the total funds appropriated for 
     grants under this section and section 2003 in fiscal year 
     2011; and
       ``(v) 0.35 percent of the total funds appropriated for 
     grants under this section and section 2003 in fiscal year 
     2012 and in each fiscal year thereafter; and
       ``(B) for each fiscal year, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, Guam, and the 
     Virgin Islands each receive, from the funds appropriated for 
     the State Homeland Security Grant Program established under 
     this section, not less than an amount equal to 0.08 percent 
     of the total funds appropriated for grants under this section 
     and section 2003.
       ``(2) Effect of multistate award on state minimum.--Any 
     portion of a multistate award provided to a State under 
     subsection (d) shall be considered in calculating the minimum 
     State allocation under this subsection.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this section--
       ``(1) $950,000,000 for each of fiscal years 2008 through 
     2012; and
       ``(2) such sums as are necessary for fiscal year 2013, and 
     each fiscal year thereafter.

     ``SEC. 2005. GRANTS TO DIRECTLY ELIGIBLE TRIBES.

       ``(a) In General.--Notwithstanding section 2004(b), the 
     Administrator may award grants to directly eligible tribes 
     under section 2004.
       ``(b) Tribal Applications.--A directly eligible tribe may 
     apply for a grant under section 2004 by submitting an 
     application to the Administrator that includes, as 
     appropriate, the information required for an application by a 
     State under section 2004(b).
       ``(c) Consistency With State Plans.--
       ``(1) In general.--To ensure consistency with any 
     applicable State homeland security plan, a directly eligible 
     tribe applying for a grant under section 2004 shall provide a 
     copy of its application to each State within which any part 
     of the tribe is located for review before the tribe submits 
     such application to the Department.
       ``(2) Opportunity for comment.--If the Governor of a State 
     determines that the application of a directly eligible tribe 
     is inconsistent with the State homeland security plan of that 
     State, or otherwise does not support the application, not 
     later than 30 days after the date of receipt of that 
     application the Governor shall--
       ``(A) notify the Administrator, in writing, of that fact; 
     and
       ``(B) provide an explanation of the reason for not 
     supporting the application.
       ``(d) Final Authority.--The Administrator shall have final 
     authority to approve any application of a directly eligible 
     tribe. The Administrator shall notify each State within the 
     boundaries of which any part of a directly eligible tribe is 
     located of the approval of an application by the tribe.
       ``(e) Prioritization.--The Administrator shall allocate 
     funds to directly eligible tribes in

[[Page 20647]]

     accordance with the factors applicable to allocating funds 
     among States under section 2007.
       ``(f) Distribution of Awards to Directly Eligible Tribes.--
     If the Administrator awards funds to a directly eligible 
     tribe under this section, the Administrator shall distribute 
     the grant funds directly to the tribe and not through any 
     State.
       ``(g) Minimum Allocation.--
       ``(1) In general.--In allocating funds under this section, 
     the Administrator shall ensure that, for each fiscal year, 
     directly eligible tribes collectively receive, from the funds 
     appropriated for the State Homeland Security Grant Program 
     established under section 2004, not less than an amount equal 
     to 0.1 percent of the total funds appropriated for grants 
     under sections 2003 and 2004.
       ``(2) Exception.--This subsection shall not apply in any 
     fiscal year in which the Administrator--
       ``(A) receives fewer than 5 applications under this 
     section; or
       ``(B) does not approve at least 2 applications under this 
     section.
       ``(h) Tribal Liaison.--A directly eligible tribe applying 
     for a grant under section 2004 shall designate an individual 
     to serve as a tribal liaison with the Department and other 
     Federal, State, local, and regional government officials 
     concerning preventing, preparing for, protecting against, and 
     responding to acts of terrorism.
       ``(i) Eligibility for Other Funds.--A directly eligible 
     tribe that receives a grant under section 2004 may receive 
     funds for other purposes under a grant from the State or 
     States within the boundaries of which any part of such tribe 
     is located and from any high-risk urban area of which it is a 
     part, consistent with the homeland security plan of the State 
     or high-risk urban area.
       ``(j) State Obligations.--
       ``(1) In general.--States shall be responsible for 
     allocating grant funds received under section 2004 to tribal 
     governments in order to help those tribal communities achieve 
     target capabilities not achieved through grants to directly 
     eligible tribes.
       ``(2) Distribution of grant funds.--With respect to a grant 
     to a State under section 2004, an Indian tribe shall be 
     eligible for funding directly from that State, and shall not 
     be required to seek funding from any local government.
       ``(3) Imposition of requirements.--A State may not impose 
     unreasonable or unduly burdensome requirements on an Indian 
     tribe as a condition of providing the Indian tribe with grant 
     funds or resources under section 2004.
       ``(k) Rule of Construction.--Nothing in this section shall 
     be construed to affect the authority of an Indian tribe that 
     receives funds under this subtitle.

     ``SEC. 2006. TERRORISM PREVENTION.

       ``(a) Law Enforcement Terrorism Prevention Program.--
       ``(1) In general.--The Administrator shall ensure that not 
     less than 25 percent of the total combined funds appropriated 
     for grants under sections 2003 and 2004 is used for law 
     enforcement terrorism prevention activities.
       ``(2) Law enforcement terrorism prevention activities.--Law 
     enforcement terrorism prevention activities include--
       ``(A) information sharing and analysis;
       ``(B) target hardening;
       ``(C) threat recognition;
       ``(D) terrorist interdiction;
       ``(E) overtime expenses consistent with a State homeland 
     security plan, including for the provision of enhanced law 
     enforcement operations in support of Federal agencies, 
     including for increased border security and border crossing 
     enforcement;
       ``(F) establishing, enhancing, and staffing with 
     appropriately qualified personnel State, local, and regional 
     fusion centers that comply with the guidelines established 
     under section 210A(i);
       ``(G) paying salaries and benefits for personnel, including 
     individuals employed by the grant recipient on the date of 
     the relevant grant application, to serve as qualified 
     intelligence analysts;
       ``(H) any other activity permitted under the Fiscal Year 
     2007 Program Guidance of the Department for the Law 
     Enforcement Terrorism Prevention Program; and
       ``(I) any other terrorism prevention activity authorized by 
     the Administrator.
       ``(3) Participation of underrepresented communities in 
     fusion centers.--The Administrator shall ensure that grant 
     funds described in paragraph (1) are used to support the 
     participation, as appropriate, of law enforcement and other 
     emergency response providers from rural and other 
     underrepresented communities at risk from acts of terrorism 
     in fusion centers.
       ``(b) Office for State and Local Law Enforcement.--
       ``(1) Establishment.--There is established in the Policy 
     Directorate of the Department an Office for State and Local 
     Law Enforcement, which shall be headed by an Assistant 
     Secretary for State and Local Law Enforcement.
       ``(2) Qualifications.--The Assistant Secretary for State 
     and Local Law Enforcement shall have an appropriate 
     background with experience in law enforcement, intelligence, 
     and other counterterrorism functions.
       ``(3) Assignment of personnel.--The Secretary shall assign 
     to the Office for State and Local Law Enforcement permanent 
     staff and, as appropriate and consistent with sections 
     506(c)(2), 821, and 888(d), other appropriate personnel 
     detailed from other components of the Department to carry out 
     the responsibilities under this subsection.
       ``(4) Responsibilities.--The Assistant Secretary for State 
     and Local Law Enforcement shall--
       ``(A) lead the coordination of Department-wide policies 
     relating to the role of State and local law enforcement in 
     preventing, preparing for, protecting against, and responding 
     to natural disasters, acts of terrorism, and other man-made 
     disasters within the United States;
       ``(B) serve as a liaison between State, local, and tribal 
     law enforcement agencies and the Department;
       ``(C) coordinate with the Office of Intelligence and 
     Analysis to ensure the intelligence and information sharing 
     requirements of State, local, and tribal law enforcement 
     agencies are being addressed;
       ``(D) work with the Administrator to ensure that law 
     enforcement and terrorism-focused grants to State, local, and 
     tribal government agencies, including grants under sections 
     2003 and 2004, the Commercial Equipment Direct Assistance 
     Program, and other grants administered by the Department to 
     support fusion centers and law enforcement-oriented programs, 
     are appropriately focused on terrorism prevention activities;
       ``(E) coordinate with the Science and Technology 
     Directorate, the Federal Emergency Management Agency, the 
     Department of Justice, the National Institute of Justice, law 
     enforcement organizations, and other appropriate entities to 
     support the development, promulgation, and updating, as 
     necessary, of national voluntary consensus standards for 
     training and personal protective equipment to be used in a 
     tactical environment by law enforcement officers; and
       ``(F) conduct, jointly with the Administrator, a study to 
     determine the efficacy and feasibility of establishing 
     specialized law enforcement deployment teams to assist State, 
     local, and tribal governments in responding to natural 
     disasters, acts of terrorism, or other man-made disasters and 
     report on the results of that study to the appropriate 
     committees of Congress.
       ``(5) Rule of construction.--Nothing in this subsection 
     shall be construed to diminish, supercede, or replace the 
     responsibilities, authorities, or role of the Administrator.

     ``SEC. 2007. PRIORITIZATION.

       ``(a) In General.--In allocating funds among States and 
     high-risk urban areas applying for grants under section 2003 
     or 2004, the Administrator shall consider, for each State or 
     high-risk urban area--
       ``(1) its relative threat, vulnerability, and consequences 
     from acts of terrorism, including consideration of--
       ``(A) its population, including appropriate consideration 
     of military, tourist, and commuter populations;
       ``(B) its population density;
       ``(C) its history of threats, including whether it has been 
     the target of a prior act of terrorism;
       ``(D) its degree of threat, vulnerability, and consequences 
     related to critical infrastructure (for all critical 
     infrastructure sectors) or key resources identified by the 
     Administrator or the State homeland security plan, including 
     threats, vulnerabilities, and consequences related to 
     critical infrastructure or key resources in nearby 
     jurisdictions;
       ``(E) the most current threat assessments available to the 
     Department;
       ``(F) whether the State has, or the high-risk urban area is 
     located at or near, an international border;
       ``(G) whether it has a coastline bordering an ocean 
     (including the Gulf of Mexico) or international waters;
       ``(H) its likely need to respond to acts of terrorism 
     occurring in nearby jurisdictions;
       ``(I) the extent to which it has unmet target capabilities;
       ``(J) in the case of a high-risk urban area, the extent to 
     which that high-risk urban area includes--
       ``(i) those incorporated municipalities, counties, 
     parishes, and Indian tribes within the relevant eligible 
     metropolitan area, the inclusion of which will enhance 
     regional efforts to prevent, prepare for, protect against, 
     and respond to acts of terrorism; and
       ``(ii) other local and tribal governments in the 
     surrounding area that are likely to be called upon to respond 
     to acts of terrorism within the high-risk urban area; and
       ``(K) such other factors as are specified in writing by the 
     Administrator; and
       ``(2) the anticipated effectiveness of the proposed use of 
     the grant by the State or high-risk urban area in increasing 
     the ability of that State or high-risk urban area to prevent, 
     prepare for, protect against, and respond to acts of 
     terrorism, to meet its target capabilities, and to otherwise 
     reduce the overall risk to the high-risk urban area, the 
     State, or the Nation.
       ``(b) Types of Threat.--In assessing threat under this 
     section, the Administrator shall consider the following types 
     of threat to critical infrastructure sectors and to 
     populations in all areas of the United States, urban and 
     rural:
       ``(1) Biological.
       ``(2) Chemical.
       ``(3) Cyber.
       ``(4) Explosives.
       ``(5) Incendiary.
       ``(6) Nuclear.
       ``(7) Radiological.
       ``(8) Suicide bombers.
       ``(9) Such other types of threat determined relevant by the 
     Administrator.

     ``SEC. 2008. USE OF FUNDS.

       ``(a) Permitted Uses.--Grants awarded under section 2003 or 
     2004 may be used to

[[Page 20648]]

     achieve target capabilities related to preventing, preparing 
     for, protecting against, and responding to acts of terrorism, 
     consistent with a State homeland security plan and relevant 
     local, tribal, and regional homeland security plans, 
     through--
       ``(1) developing and enhancing homeland security, emergency 
     management, or other relevant plans, assessments, or mutual 
     aid agreements;
       ``(2) designing, conducting, and evaluating training and 
     exercises, including training and exercises conducted under 
     section 512 of this Act and section 648 of the Post-Katrina 
     Emergency Management Reform Act of 2006 (6 U.S.C. 748);
       ``(3) protecting a system or asset included on the 
     prioritized critical infrastructure list established under 
     section 210E(a)(2);
       ``(4) purchasing, upgrading, storing, or maintaining 
     equipment, including computer hardware and software;
       ``(5) ensuring operability and achieving interoperability 
     of emergency communications;
       ``(6) responding to an increase in the threat level under 
     the Homeland Security Advisory System, or to the needs 
     resulting from a National Special Security Event;
       ``(7) establishing, enhancing, and staffing with 
     appropriately qualified personnel State, local, and regional 
     fusion centers that comply with the guidelines established 
     under section 210A(i);
       ``(8) enhancing school preparedness;
       ``(9) supporting public safety answering points;
       ``(10) paying salaries and benefits for personnel, 
     including individuals employed by the grant recipient on the 
     date of the relevant grant application, to serve as qualified 
     intelligence analysts;
       ``(11) paying expenses directly related to administration 
     of the grant, except that such expenses may not exceed 3 
     percent of the amount of the grant;
       ``(12) any activity permitted under the Fiscal Year 2007 
     Program Guidance of the Department for the State Homeland 
     Security Grant Program, the Urban Area Security Initiative 
     (including activities permitted under the full-time 
     counterterrorism staffing pilot), or the Law Enforcement 
     Terrorism Prevention Program; and
       ``(13) any other appropriate activity, as determined by the 
     Administrator.
       ``(b) Limitations on Use of Funds.--
       ``(1) In general.--Funds provided under section 2003 or 
     2004 may not be used--
       ``(A) to supplant State or local funds, except that nothing 
     in this paragraph shall prohibit the use of grant funds 
     provided to a State or high-risk urban area for otherwise 
     permissible uses under subsection (a) on the basis that a 
     State or high-risk urban area has previously used State or 
     local funds to support the same or similar uses; or
       ``(B) for any State or local government cost-sharing 
     contribution.
       ``(2) Personnel.--
       ``(A) In general.--Not more than 50 percent of the amount 
     awarded to a grant recipient under section 2003 or 2004 in 
     any fiscal year may be used to pay for personnel, including 
     overtime and backfill costs, in support of the permitted uses 
     under subsection (a).
       ``(B) Waiver.--At the request of the recipient of a grant 
     under section 2003 or 2004, the Administrator may grant a 
     waiver of the limitation under subparagraph (A).
       ``(3) Construction.--
       ``(A) In general.--A grant awarded under section 2003 or 
     2004 may not be used to acquire land or to construct 
     buildings or other physical facilities.
       ``(B) Exceptions.--
       ``(i) In general.--Notwithstanding subparagraph (A), 
     nothing in this paragraph shall prohibit the use of a grant 
     awarded under section 2003 or 2004 to achieve target 
     capabilities related to preventing, preparing for, protecting 
     against, or responding to acts of terrorism, including 
     through the alteration or remodeling of existing buildings 
     for the purpose of making such buildings secure against acts 
     of terrorism.
       ``(ii) Requirements for exception.--No grant awarded under 
     section 2003 or 2004 may be used for a purpose described in 
     clause (i) unless--

       ``(I) specifically approved by the Administrator;
       ``(II) any construction work occurs under terms and 
     conditions consistent with the requirements under section 
     611(j)(9) of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5196(j)(9)); and
       ``(III) the amount allocated for purposes under clause (i) 
     does not exceed the greater of $1,000,000 or 15 percent of 
     the grant award.

       ``(4) Recreation.--Grants awarded under this subtitle may 
     not be used for recreational or social purposes.
       ``(c) Multiple-Purpose Funds.--Nothing in this subtitle 
     shall be construed to prohibit State, local, or tribal 
     governments from using grant funds under sections 2003 and 
     2004 in a manner that enhances preparedness for disasters 
     unrelated to acts of terrorism, if such use assists such 
     governments in achieving target capabilities related to 
     preventing, preparing for, protecting against, or responding 
     to acts of terrorism.
       ``(d) Reimbursement of Costs.--
       ``(1) Paid-on-call or volunteer reimbursement.--In addition 
     to the activities described in subsection (a), a grant under 
     section 2003 or 2004 may be used to provide a reasonable 
     stipend to paid-on-call or volunteer emergency response 
     providers who are not otherwise compensated for travel to or 
     participation in training or exercises related to the 
     purposes of this subtitle. Any such reimbursement shall not 
     be considered compensation for purposes of rendering an 
     emergency response provider an employee under the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 201 et seq.).
       ``(2) Performance of federal duty.--An applicant for a 
     grant under section 2003 or 2004 may petition the 
     Administrator to use the funds from its grants under those 
     sections for the reimbursement of the cost of any activity 
     relating to preventing, preparing for, protecting against, or 
     responding to acts of terrorism that is a Federal duty and 
     usually performed by a Federal agency, and that is being 
     performed by a State or local government under agreement with 
     a Federal agency.
       ``(e) Flexibility in Unspent Homeland Security Grant 
     Funds.--Upon request by the recipient of a grant under 
     section 2003 or 2004, the Administrator may authorize the 
     grant recipient to transfer all or part of the grant funds 
     from uses specified in the grant agreement to other uses 
     authorized under this section, if the Administrator 
     determines that such transfer is in the interests of homeland 
     security.
       ``(f) Equipment Standards.--If an applicant for a grant 
     under section 2003 or 2004 proposes to upgrade or purchase, 
     with assistance provided under that grant, new equipment or 
     systems that do not meet or exceed any applicable national 
     voluntary consensus standards developed under section 647 of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 747), the applicant shall include in its application 
     an explanation of why such equipment or systems will serve 
     the needs of the applicant better than equipment or systems 
     that meet or exceed such standards.

                  ``Subtitle B--Grants Administration

     ``SEC. 2021. ADMINISTRATION AND COORDINATION.

       ``(a) Regional Coordination.--The Administrator shall 
     ensure that--
       ``(1) all recipients of grants administered by the 
     Department to prevent, prepare for, protect against, or 
     respond to natural disasters, acts of terrorism, or other 
     man-made disasters (excluding assistance provided under 
     section 203, title IV, or title V of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 
     5170 et seq., and 5191 et seq.)) coordinate, as appropriate, 
     their prevention, preparedness, and protection efforts with 
     neighboring State, local, and tribal governments; and
       ``(2) all high-risk urban areas and other recipients of 
     grants administered by the Department to prevent, prepare 
     for, protect against, or respond to natural disasters, acts 
     of terrorism, or other man-made disasters (excluding 
     assistance provided under section 203, title IV, or title V 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et 
     seq.)) that include or substantially affect parts or all of 
     more than 1 State coordinate, as appropriate, across State 
     boundaries, including, where appropriate, through the use of 
     regional working groups and requirements for regional plans.
       ``(b) Planning Committees.--
       ``(1) In general.--Any State or high-risk urban area 
     receiving a grant under section 2003 or 2004 shall establish 
     a planning committee to assist in preparation and revision of 
     the State, regional, or local homeland security plan and to 
     assist in determining effective funding priorities for grants 
     under sections 2003 and 2004.
       ``(2) Composition.--
       ``(A) In general.--The planning committee shall include 
     representatives of significant stakeholders, including--
       ``(i) local and tribal government officials; and
       ``(ii) emergency response providers, which shall include 
     representatives of the fire service, law enforcement, 
     emergency medical response, and emergency managers.
       ``(B) Geographic representation.--The members of the 
     planning committee shall be a representative group of 
     individuals from the counties, cities, towns, and Indian 
     tribes within the State or high-risk urban area, including, 
     as appropriate, representatives of rural, high-population, 
     and high-threat jurisdictions.
       ``(3) Existing planning committees.--Nothing in this 
     subsection may be construed to require that any State or 
     high-risk urban area create a planning committee if that 
     State or high-risk urban area has established and uses a 
     multijurisdictional planning committee or commission that 
     meets the requirements of this subsection.
       ``(c) Interagency Coordination.--
       ``(1) In general.--Not later than 12 months after the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Secretary (acting through the 
     Administrator), the Attorney General, the Secretary of Health 
     and Human Services, and the heads of other agencies providing 
     assistance to State, local, and tribal governments for 
     preventing, preparing for, protecting against, and responding 
     to natural disasters, acts of terrorism, and other man-made 
     disasters, shall jointly--
       ``(A) compile a comprehensive list of Federal grant 
     programs for State, local, and tribal governments for 
     preventing, preparing for, protecting against, and responding 
     to natural disasters, acts of terrorism, and other man-made 
     disasters;
       ``(B) compile the planning, reporting, application, and 
     other requirements and guidance for the grant programs 
     described in subparagraph (A);

[[Page 20649]]

       ``(C) develop recommendations, as appropriate, to--
       ``(i) eliminate redundant and duplicative requirements for 
     State, local, and tribal governments, including onerous 
     application and ongoing reporting requirements;
       ``(ii) ensure accountability of the programs to the 
     intended purposes of such programs;
       ``(iii) coordinate allocation of grant funds to avoid 
     duplicative or inconsistent purchases by the recipients;
       ``(iv) make the programs more accessible and user friendly 
     to applicants; and
       ``(v) ensure the programs are coordinated to enhance the 
     overall preparedness of the Nation;
       ``(D) submit the information and recommendations under 
     subparagraphs (A), (B), and (C) to the appropriate committees 
     of Congress; and
       ``(E) provide the appropriate committees of Congress, the 
     Comptroller General, and any officer or employee of the 
     Government Accountability Office with full access to any 
     information collected or reviewed in preparing the submission 
     under subparagraph (D).
       ``(2) Scope of task.--Nothing in this subsection shall 
     authorize the elimination, or the alteration of the purposes, 
     as delineated by statute, regulation, or guidance, of any 
     grant program that exists on the date of the enactment of the 
     Implementing Recommendations of the 9/11 Commission Act of 
     2007, nor authorize the review or preparation of proposals on 
     the elimination, or the alteration of such purposes, of any 
     such grant program.
       ``(d) Sense of Congress.--It is the sense of Congress that, 
     in order to ensure that the Nation is most effectively able 
     to prevent, prepare for, protect against, and respond to all 
     hazards, including natural disasters, acts of terrorism, and 
     other man-made disasters--
       ``(1) the Department should administer a coherent and 
     coordinated system of both terrorism-focused and all-hazards 
     grants;
       ``(2) there should be a continuing and appropriate balance 
     between funding for terrorism-focused and all-hazards 
     preparedness, as reflected in the authorizations of 
     appropriations for grants under the amendments made by titles 
     I and II, as applicable, of the Implementing Recommendations 
     of the 9/11 Commission Act of 2007; and
       ``(3) with respect to terrorism-focused grants, it is 
     necessary to ensure both that the target capabilities of the 
     highest risk areas are achieved quickly and that basic levels 
     of preparedness, as measured by the attainment of target 
     capabilities, are achieved nationwide.

     ``SEC. 2022. ACCOUNTABILITY.

       ``(a) Audits of Grant Programs.--
       ``(1) Compliance requirements.--
       ``(A) Audit requirement.--Each recipient of a grant 
     administered by the Department that expends not less than 
     $500,000 in Federal funds during its fiscal year shall submit 
     to the Administrator a copy of the organization-wide 
     financial and compliance audit report required under chapter 
     75 of title 31, United States Code.
       ``(B) Access to information.--The Department and each 
     recipient of a grant administered by the Department shall 
     provide the Comptroller General and any officer or employee 
     of the Government Accountability Office with full access to 
     information regarding the activities carried out related to 
     any grant administered by the Department.
       ``(C) Improper payments.--Consistent with the Improper 
     Payments Information Act of 2002 (31 U.S.C. 3321 note), for 
     each of the grant programs under sections 2003 and 2004 of 
     this title and section 662 of the Post-Katrina Emergency 
     Management Reform Act of 2006 (6 U.S.C. 762), the 
     Administrator shall specify policies and procedures for--
       ``(i) identifying activities funded under any such grant 
     program that are susceptible to significant improper 
     payments; and
       ``(ii) reporting any improper payments to the Department.
       ``(2) Agency program review.--
       ``(A) In general.--Not less than once every 2 years, the 
     Administrator shall conduct, for each State and high-risk 
     urban area receiving a grant administered by the Department, 
     a programmatic and financial review of all grants awarded by 
     the Department to prevent, prepare for, protect against, or 
     respond to natural disasters, acts of terrorism, or other 
     man-made disasters, excluding assistance provided under 
     section 203, title IV, or title V of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 
     5170 et seq., and 5191 et seq.).
       ``(B) Contents.--Each review under subparagraph (A) shall, 
     at a minimum, examine--
       ``(i) whether the funds awarded were used in accordance 
     with the law, program guidance, and State homeland security 
     plans or other applicable plans; and
       ``(ii) the extent to which funds awarded enhanced the 
     ability of a grantee to prevent, prepare for, protect 
     against, and respond to natural disasters, acts of terrorism, 
     and other man-made disasters.
       ``(C) Authorization of appropriations.--In addition to any 
     other amounts authorized to be appropriated to the 
     Administrator, there are authorized to be appropriated to the 
     Administrator for reviews under this paragraph--
       ``(i) $8,000,000 for each of fiscal years 2008, 2009, and 
     2010; and
       ``(ii) such sums as are necessary for fiscal year 2011, and 
     each fiscal year thereafter.
       ``(3) Office of inspector general performance audits.--
       ``(A) In general.--In order to ensure the effective and 
     appropriate use of grants administered by the Department, the 
     Inspector General of the Department each year shall conduct 
     audits of a sample of States and high-risk urban areas that 
     receive grants administered by the Department to prevent, 
     prepare for, protect against, or respond to natural 
     disasters, acts of terrorism, or other man-made disasters, 
     excluding assistance provided under section 203, title IV, or 
     title V of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5133, 5170 et seq., and 
     5191 et seq.).
       ``(B) Determining samples.--The sample selected for audits 
     under subparagraph (A) shall be--
       ``(i) of an appropriate size to--

       ``(I) assess the overall integrity of the grant programs 
     described in subparagraph (A); and
       ``(II) act as a deterrent to financial mismanagement; and

       ``(ii) selected based on--

       ``(I) the size of the grants awarded to the recipient;
       ``(II) the past grant management performance of the 
     recipient;
       ``(III) concerns identified by the Administrator, including 
     referrals from the Administrator; and
       ``(IV) such other factors as determined by the Inspector 
     General of the Department.

       ``(C) Comprehensive auditing.--During the 7-year period 
     beginning on the date of enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     Inspector General of the Department shall conduct not fewer 
     than 1 audit of each State that receives funds under a grant 
     under section 2003 or 2004.
       ``(D) Report by the inspector general.--
       ``(i) In general.--The Inspector General of the Department 
     shall submit to the appropriate committees of Congress an 
     annual consolidated report regarding the audits completed 
     during the fiscal year before the date of that report.
       ``(ii) Contents.--Each report submitted under clause (i) 
     shall describe, for the fiscal year before the date of that 
     report--

       ``(I) the audits conducted under subparagraph (A);
       ``(II) the findings of the Inspector General with respect 
     to the audits conducted under subparagraph (A);
       ``(III) whether the funds awarded were used in accordance 
     with the law, program guidance, and State homeland security 
     plans and other applicable plans; and
       ``(IV) the extent to which funds awarded enhanced the 
     ability of a grantee to prevent, prepare for, protect 
     against, and respond to natural disasters, acts of terrorism 
     and other man-made disasters.

       ``(iii) Deadline.--For each year, the report required under 
     clause (i) shall be submitted not later than December 31.
       ``(E) Public availability on website.--The Inspector 
     General of the Department shall make each audit conducted 
     under subparagraph (A) available on the website of the 
     Inspector General, subject to redaction as the Inspector 
     General determines necessary to protect classified and other 
     sensitive information.
       ``(F) Provision of information to administrator.--The 
     Inspector General of the Department shall provide to the 
     Administrator any findings and recommendations from audits 
     conducted under subparagraph (A).
       ``(G) Evaluation of grants management and oversight.--Not 
     later than 1 year after the date of enactment of the 
     Implementing Recommendations of the 9/11 Commission Act of 
     2007, the Inspector General of the Department shall review 
     and evaluate the grants management and oversight practices of 
     the Federal Emergency Management Agency, including assessment 
     of and recommendations relating to--
       ``(i) the skills, resources, and capabilities of the 
     workforce; and
       ``(ii) any additional resources and staff necessary to 
     carry out such management and oversight.
       ``(H) Authorization of appropriations.--In addition to any 
     other amounts authorized to be appropriated to the Inspector 
     General of the Department, there are authorized to be 
     appropriated to the Inspector General of the Department for 
     audits under subparagraph (A)--
       ``(i) $8,500,000 for each of fiscal years 2008, 2009, and 
     2010; and
       ``(ii) such sums as are necessary for fiscal year 2011, and 
     each fiscal year thereafter.
       ``(4) Performance assessment.--In order to ensure that 
     States and high-risk urban areas are using grants 
     administered by the Department appropriately to meet target 
     capabilities and preparedness priorities, the Administrator 
     shall--
       ``(A) ensure that any such State or high-risk urban area 
     conducts or participates in exercises under section 648(b) of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 748(b));
       ``(B) use performance metrics in accordance with the 
     comprehensive assessment system under section 649 of the 
     Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 749) and ensure that any such State or high-risk urban 
     area regularly tests its progress against such metrics 
     through the exercises required under subparagraph (A);
       ``(C) use the remedial action management program under 
     section 650 of the Post-Katrina Emergency Management Reform 
     Act of 2006 (6 U.S.C. 750); and
       ``(D) ensure that each State receiving a grant administered 
     by the Department submits a report to the Administrator on 
     its level of preparedness, as required by section 652(c) of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 752(c)).

[[Page 20650]]

       ``(5) Consideration of assessments.--In conducting program 
     reviews and performance audits under paragraphs (2) and (3), 
     the Administrator and the Inspector General of the Department 
     shall take into account the performance assessment elements 
     required under paragraph (4).
       ``(6) Recovery audits.--The Administrator shall conduct a 
     recovery audit (as that term is defined by the Director of 
     the Office of Management and Budget under section 3561 of 
     title 31, United States Code) for any grant administered by 
     the Department with a total value of not less than 
     $1,000,000, if the Administrator finds that--
       ``(A) a financial audit has identified improper payments 
     that can be recouped; and
       ``(B) it is cost effective to conduct a recovery audit to 
     recapture the targeted funds.
       ``(7) Remedies for noncompliance.--
       ``(A) In general.--If, as a result of a review or audit 
     under this subsection or otherwise, the Administrator finds 
     that a recipient of a grant under this title has failed to 
     substantially comply with any provision of law or with any 
     regulations or guidelines of the Department regarding 
     eligible expenditures, the Administrator shall--
       ``(i) reduce the amount of payment of grant funds to the 
     recipient by an amount equal to the amount of grants funds 
     that were not properly expended by the recipient;
       ``(ii) limit the use of grant funds to programs, projects, 
     or activities not affected by the failure to comply;
       ``(iii) refer the matter to the Inspector General of the 
     Department for further investigation;
       ``(iv) terminate any payment of grant funds to be made to 
     the recipient; or
       ``(v) take such other action as the Administrator 
     determines appropriate.
       ``(B) Duration of penalty.--The Administrator shall apply 
     an appropriate penalty under subparagraph (A) until such time 
     as the Administrator determines that the grant recipient is 
     in full compliance with the law and with applicable 
     guidelines or regulations of the Department.
       ``(b) Reports by Grant Recipients.--
       ``(1) Quarterly reports on homeland security spending.--
       ``(A) In general.--As a condition of receiving a grant 
     under section 2003 or 2004, a State, high-risk urban area, or 
     directly eligible tribe shall, not later than 30 days after 
     the end of each Federal fiscal quarter, submit to the 
     Administrator a report on activities performed using grant 
     funds during that fiscal quarter.
       ``(B) Contents.--Each report submitted under subparagraph 
     (A) shall at a minimum include, for the applicable State, 
     high-risk urban area, or directly eligible tribe, and each 
     subgrantee thereof--
       ``(i) the amount obligated to that recipient under section 
     2003 or 2004 in that quarter;
       ``(ii) the amount of funds received and expended under 
     section 2003 or 2004 by that recipient in that quarter; and
       ``(iii) a summary description of expenditures made by that 
     recipient using such funds, and the purposes for which such 
     expenditures were made.
       ``(C) End-of-year report.--The report submitted under 
     subparagraph (A) by a State, high-risk urban area, or 
     directly eligible tribe relating to the last quarter of any 
     fiscal year shall include--
       ``(i) the amount and date of receipt of all funds received 
     under the grant during that fiscal year;
       ``(ii) the identity of, and amount provided to, any 
     subgrantee for that grant during that fiscal year;
       ``(iii) the amount and the dates of disbursements of all 
     such funds expended in compliance with section 2021(a)(1) or 
     under mutual aid agreements or other sharing arrangements 
     that apply within the State, high-risk urban area, or 
     directly eligible tribe, as applicable, during that fiscal 
     year; and
       ``(iv) how the funds were used by each recipient or 
     subgrantee during that fiscal year.
       ``(2) Annual report.--Any State applying for a grant under 
     section 2004 shall submit to the Administrator annually a 
     State preparedness report, as required by section 652(c) of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 752(c)).
       ``(c) Reports by the Administrator.--
       ``(1) Federal preparedness report.--The Administrator shall 
     submit to the appropriate committees of Congress annually the 
     Federal Preparedness Report required under section 652(a) of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 752(a)).
       ``(2) Risk assessment.--
       ``(A) In general.--For each fiscal year, the Administrator 
     shall provide to the appropriate committees of Congress a 
     detailed and comprehensive explanation of the methodologies 
     used to calculate risk and compute the allocation of funds 
     for grants administered by the Department, including--
       ``(i) all variables included in the risk assessment and the 
     weights assigned to each such variable;
       ``(ii) an explanation of how each such variable, as 
     weighted, correlates to risk, and the basis for concluding 
     there is such a correlation; and
       ``(iii) any change in the methodologies from the previous 
     fiscal year, including changes in variables considered, 
     weighting of those variables, and computational methods.
       ``(B) Classified annex.--The information required under 
     subparagraph (A) shall be provided in unclassified form to 
     the greatest extent possible, and may include a classified 
     annex if necessary.
       ``(C) Deadline.--For each fiscal year, the information 
     required under subparagraph (A) shall be provided on the 
     earlier of--
       ``(i) October 31; or
       ``(ii) 30 days before the issuance of any program guidance 
     for grants administered by the Department.
       ``(3) Tribal funding report.--At the end of each fiscal 
     year, the Administrator shall submit to the appropriate 
     committees of Congress a report setting forth the amount of 
     funding provided during that fiscal year to Indian tribes 
     under any grant program administered by the Department, 
     whether provided directly or through a subgrant from a State 
     or high-risk urban area.''.

     SEC. 102. OTHER AMENDMENTS TO THE HOMELAND SECURITY ACT OF 
                   2002.

       (a) National Advisory Council.--Section 508(b) of the 
     Homeland Security Act of 2002 (6 U.S.C. 318(b)) is amended--
       (1) by striking ``The National Advisory'' the first place 
     that term appears and inserting the following:
       ``(1) In general.--The National Advisory''; and
       (2) by adding at the end the following:
       ``(2) Consultation on grants.--To ensure input from and 
     coordination with State, local, and tribal governments and 
     emergency response providers, the Administrator shall 
     regularly consult and work with the National Advisory Council 
     on the administration and assessment of grant programs 
     administered by the Department, including with respect to the 
     development of program guidance and the development and 
     evaluation of risk-assessment methodologies, as 
     appropriate.''.
       (b) Evacuation Planning.--Section 512(b)(5)(A) of the 
     Homeland Security Act of 2002 (6 U.S.C. 321a(b)(5)(A)) is 
     amended by inserting ``, including the elderly'' after 
     ``needs''.

     SEC. 103. AMENDMENTS TO THE POST-KATRINA EMERGENCY MANAGEMENT 
                   REFORM ACT OF 2006.

       (a) Funding Efficacy.--Section 652(a)(2) of the Post-
     Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 
     752(a)(2)) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) an evaluation of the extent to which grants 
     administered by the Department, including grants under title 
     XX of the Homeland Security Act of 2002--
       ``(i) have contributed to the progress of State, local, and 
     tribal governments in achieving target capabilities; and
       ``(ii) have led to the reduction of risk from natural 
     disasters, acts of terrorism, or other man-made disasters 
     nationally and in State, local, and tribal jurisdictions.''.
       (b) State Preparedness Report.--Section 652(c)(2)(D) of the 
     Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 752(c)(2)(D)) is amended by striking ``an assessment 
     of resource needs'' and inserting ``a discussion of the 
     extent to which target capabilities identified in the 
     applicable State homeland security plan and other applicable 
     plans remain unmet and an assessment of resources needed''.

     SEC. 104. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) In General.--The Homeland Security Act of 2002 (6 
     U.S.C. 101 et seq.) is amended--
       (1) by redesignating title XVIII, as added by the SAFE Port 
     Act (Public Law 109-347; 120 Stat. 1884), as title XIX;
       (2) by redesignating sections 1801 through 1806, as added 
     by the SAFE Port Act (Public Law 109-347; 120 Stat. 1884), as 
     sections 1901 through 1906, respectively;
       (3) in section 1904(a), as so redesignated, by striking 
     ``section 1802'' and inserting ``section 1902'';
       (4) in section 1906, as so redesignated, by striking 
     ``section 1802(a)'' each place that term appears and 
     inserting ``section 1902(a)''; and
       (5) in the table of contents in section 1(b), by striking 
     the items relating to title XVIII and sections 1801 through 
     1806, as added by the SAFE Port Act (Public Law 109-347; 120 
     Stat. 1884), and inserting the following:

             ``TITLE XIX--DOMESTIC NUCLEAR DETECTION OFFICE

``Sec. 1901. Domestic Nuclear Detection Office.
``Sec. 1902. Mission of Office.
``Sec. 1903. Hiring authority.
``Sec. 1904. Testing authority.
``Sec. 1905. Relationship to other Department entities and Federal 
              agencies.
``Sec. 1906. Contracting and grant making authorities.

                  ``TITLE XX--HOMELAND SECURITY GRANTS

``Sec. 2001. Definitions.

        ``Subtitle A--Grants to States and High-Risk Urban Areas

``Sec. 2002. Homeland Security Grant Programs.
``Sec. 2003. Urban Area Security Initiative.
``Sec. 2004. State Homeland Security Grant Program.
``Sec. 2005. Grants to directly eligible tribes.
``Sec. 2006. Terrorism prevention.
``Sec. 2007. Prioritization.
``Sec. 2008. Use of funds.

                  ``Subtitle B--Grants Administration

``Sec. 2021. Administration and coordination.
``Sec. 2022. Accountability.''.

[[Page 20651]]



           TITLE II--EMERGENCY MANAGEMENT PERFORMANCE GRANTS

     SEC. 201. EMERGENCY MANAGEMENT PERFORMANCE GRANT PROGRAM.

       Section 662 of the Post-Katrina Emergency Management Reform 
     Act of 2006 (6 U.S.C. 762) is amended to read as follows:

     ``SEC. 662. EMERGENCY MANAGEMENT PERFORMANCE GRANTS PROGRAM.

       ``(a) Definitions.--In this section--
       ``(1) the term `program' means the emergency management 
     performance grants program described in subsection (b); and
       ``(2) the term `State' has the meaning given that term in 
     section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122).
       ``(b) In General.--The Administrator of the Federal 
     Emergency Management Agency shall continue implementation of 
     an emergency management performance grants program, to make 
     grants to States to assist State, local, and tribal 
     governments in preparing for all hazards, as authorized by 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       ``(c) Federal Share.--Except as otherwise specifically 
     provided by title VI of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
     the Federal share of the cost of an activity carried out 
     using funds made available under the program shall not exceed 
     50 percent.
       ``(d) Apportionment.--For fiscal year 2008, and each fiscal 
     year thereafter, the Administrator shall apportion the 
     amounts appropriated to carry out the program among the 
     States as follows:
       ``(1) Baseline amount.--The Administrator shall first 
     apportion 0.25 percent of such amounts to each of American 
     Samoa, the Commonwealth of the Northern Mariana Islands, 
     Guam, and the Virgin Islands and 0.75 percent of such amounts 
     to each of the remaining States.
       ``(2) Remainder.--The Administrator shall apportion the 
     remainder of such amounts in the ratio that--
       ``(A) the population of each State; bears to
       ``(B) the population of all States.
       ``(e) Consistency in Allocation.--Notwithstanding 
     subsection (d), in any fiscal year before fiscal year 2013 in 
     which the appropriation for grants under this section is 
     equal to or greater than the appropriation for emergency 
     management performance grants in fiscal year 2007, no State 
     shall receive an amount under this section for that fiscal 
     year less than the amount that State received in fiscal year 
     2007.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program--
       ``(1) for fiscal year 2008, $400,000,000;
       ``(2) for fiscal year 2009, $535,000,000;
       ``(3) for fiscal year 2010, $680,000,000;
       ``(4) for fiscal year 2011, $815,000,000; and
       ``(5) for fiscal year 2012, $950,000,000.''.

     SEC. 202. GRANTS FOR CONSTRUCTION OF EMERGENCY OPERATIONS 
                   CENTERS.

       Section 614 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5196c) is amended to read 
     as follows:

     ``SEC. 614. GRANTS FOR CONSTRUCTION OF EMERGENCY OPERATIONS 
                   CENTERS.

       ``(a) Grants.--The Administrator of the Federal Emergency 
     Management Agency may make grants to States under this title 
     for equipping, upgrading, and constructing State and local 
     emergency operations centers.
       ``(b) Federal Share.--Notwithstanding any other provision 
     of this title, the Federal share of the cost of an activity 
     carried out using amounts from grants made under this section 
     shall not exceed 75 percent.''.

     TITLE III--ENSURING COMMUNICATIONS INTEROPERABILITY FOR FIRST 
                               RESPONDERS

     SEC. 301. INTEROPERABLE EMERGENCY COMMUNICATIONS GRANT 
                   PROGRAM.

       (a) Establishment.--Title XVIII of the Homeland Security 
     Act of 2002 (6 U.S.C. 571 et seq.) is amended by adding at 
     the end the following new section:

     ``SEC. 1809. INTEROPERABLE EMERGENCY COMMUNICATIONS GRANT 
                   PROGRAM.

       ``(a) Establishment.--The Secretary shall establish the 
     Interoperable Emergency Communications Grant Program to make 
     grants to States to carry out initiatives to improve local, 
     tribal, statewide, regional, national and, where appropriate, 
     international interoperable emergency communications, 
     including communications in collective response to natural 
     disasters, acts of terrorism, and other man-made disasters.
       ``(b) Policy.--The Director for Emergency Communications 
     shall ensure that a grant awarded to a State under this 
     section is consistent with the policies established pursuant 
     to the responsibilities and authorities of the Office of 
     Emergency Communications under this title, including ensuring 
     that activities funded by the grant--
       ``(1) comply with the statewide plan for that State 
     required by section 7303(f) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)); and
       ``(2) comply with the National Emergency Communications 
     Plan under section 1802, when completed.
       ``(c) Administration.--
       ``(1) In general.--The Administrator of the Federal 
     Emergency Management Agency shall administer the 
     Interoperable Emergency Communications Grant Program pursuant 
     to the responsibilities and authorities of the Administrator 
     under title V of the Act.
       ``(2) Guidance.--In administering the grant program, the 
     Administrator shall ensure that the use of grants is 
     consistent with guidance established by the Director of 
     Emergency Communications pursuant to section 7303(a)(1)(H) of 
     the Intelligence Reform and Terrorism Prevention Act of 2004 
     (6 U.S.C. 194(a)(1)(H)).
       ``(d) Use of Funds.--A State that receives a grant under 
     this section shall use the grant to implement that State's 
     Statewide Interoperability Plan required under section 
     7303(f) of the Intelligence Reform and Terrorism Prevention 
     Act of 2004 (6 U.S.C. 194(f)) and approved under subsection 
     (e), and to assist with activities determined by the 
     Secretary to be integral to interoperable emergency 
     communications.
       ``(e) Approval of Plans.--
       ``(1) Approval as condition of grant.--Before a State may 
     receive a grant under this section, the Director of Emergency 
     Communications shall approve the State's Statewide 
     Interoperable Communications Plan required under section 
     7303(f) of the Intelligence Reform and Terrorism Prevention 
     Act of 2004 (6 U.S.C. 194(f)).
       ``(2) Plan requirements.--In approving a plan under this 
     subsection, the Director of Emergency Communications shall 
     ensure that the plan--
       ``(A) is designed to improve interoperability at the city, 
     county, regional, State and interstate level;
       ``(B) considers any applicable local or regional plan; and
       ``(C) complies, to the maximum extent practicable, with the 
     National Emergency Communications Plan under section 1802.
       ``(3) Approval of revisions.--The Director of Emergency 
     Communications may approve revisions to a State's plan if the 
     Director determines that doing so is likely to further 
     interoperability.
       ``(f) Limitations on Uses of Funds.--
       ``(1) In general.--The recipient of a grant under this 
     section may not use the grant--
       ``(A) to supplant State or local funds;
       ``(B) for any State or local government cost-sharing 
     contribution; or
       ``(C) for recreational or social purposes.
       ``(2) Penalties.--In addition to other remedies currently 
     available, the Secretary may take such actions as necessary 
     to ensure that recipients of grant funds are using the funds 
     for the purpose for which they were intended.
       ``(g) Limitations on Award of Grants.--
       ``(1) National emergency communications plan required.--The 
     Secretary may not award a grant under this section before the 
     date on which the Secretary completes and submits to Congress 
     the National Emergency Communications Plan required under 
     section 1802.
       ``(2) Voluntary consensus standards.--The Secretary may not 
     award a grant to a State under this section for the purchase 
     of equipment that does not meet applicable voluntary 
     consensus standards, unless the State demonstrates that there 
     are compelling reasons for such purchase.
       ``(h) Award of Grants.--In approving applications and 
     awarding grants under this section, the Secretary shall 
     consider--
       ``(1) the risk posed to each State by natural disasters, 
     acts of terrorism, or other manmade disasters, including--
       ``(A) the likely need of a jurisdiction within the State to 
     respond to such risk in nearby jurisdictions;
       ``(B) the degree of threat, vulnerability, and consequences 
     related to critical infrastructure (from all critical 
     infrastructure sectors) or key resources identified by the 
     Administrator or the State homeland security and emergency 
     management plans, including threats to, vulnerabilities of, 
     and consequences from damage to critical infrastructure and 
     key resources in nearby jurisdictions;
       ``(C) the size of the population and density of the 
     population of the State, including appropriate consideration 
     of military, tourist, and commuter populations;
       ``(D) whether the State is on or near an international 
     border;
       ``(E) whether the State encompasses an economically 
     significant border crossing; and
       ``(F) whether the State has a coastline bordering an ocean, 
     a major waterway used for interstate commerce, or 
     international waters, and
       ``(2) the anticipated effectiveness of the State's proposed 
     use of grant funds to improve interoperability.
       ``(i) Opportunity to Amend Applications.--In considering 
     applications for grants under this section, the Administrator 
     shall provide applicants with a reasonable opportunity to 
     correct defects in the application, if any, before making 
     final awards.
       ``(j) Minimum Grant Amounts.--
       ``(1) States.--In awarding grants under this section, the 
     Secretary shall ensure that for each fiscal year, except as 
     provided in paragraph (2), no State receives a grant in an 
     amount that is less than the following percentage of the 
     total amount appropriated for grants under this section for 
     that fiscal year:
       ``(A) For fiscal year 2008, 0.50 percent.
       ``(B) For fiscal year 2009, 0.50 percent.
       ``(C) For fiscal year 2010, 0.45 percent.
       ``(D) For fiscal year 2011, 0.40 percent.
       ``(E) For fiscal year 2012 and each subsequent fiscal year, 
     0.35 percent.
       ``(2) Territories and possessions.--In awarding grants 
     under this section, the Secretary shall ensure that for each 
     fiscal year, American Samoa, the Commonwealth of the Northern 
     Mariana Islands, Guam, and the Virgin Islands each receive 
     grants in amounts that

[[Page 20652]]

     are not less than 0.08 percent of the total amount 
     appropriated for grants under this section for that fiscal 
     year.
       ``(k) Certification.--Each State that receives a grant 
     under this section shall certify that the grant is used for 
     the purpose for which the funds were intended and in 
     compliance with the State's approved Statewide Interoperable 
     Communications Plan.
       ``(l) State Responsibilities.--
       ``(1) Availability of funds to local and tribal 
     governments.--Not later than 45 days after receiving grant 
     funds, any State that receives a grant under this section 
     shall obligate or otherwise make available to local and 
     tribal governments--
       ``(A) not less than 80 percent of the grant funds;
       ``(B) with the consent of local and tribal governments, 
     eligible expenditures having a value of not less than 80 
     percent of the amount of the grant; or
       ``(C) grant funds combined with other eligible expenditures 
     having a total value of not less than 80 percent of the 
     amount of the grant.
       ``(2) Allocation of funds.--A State that receives a grant 
     under this section shall allocate grant funds to tribal 
     governments in the State to assist tribal communities in 
     improving interoperable communications, in a manner 
     consistent with the Statewide Interoperable Communications 
     Plan. A State may not impose unreasonable or unduly 
     burdensome requirements on a tribal government as a condition 
     of providing grant funds or resources to the tribal 
     government.
       ``(3) Penalties.--If a State violates the requirements of 
     this subsection, in addition to other remedies available to 
     the Secretary, the Secretary may terminate or reduce the 
     amount of the grant awarded to that State or transfer grant 
     funds previously awarded to the State directly to the 
     appropriate local or tribal government.
       ``(m) Reports.--
       ``(1) Annual reports by state grant recipients.--A State 
     that receives a grant under this section shall annually 
     submit to the Director of Emergency Communications a report 
     on the progress of the State in implementing that State's 
     Statewide Interoperable Communications Plans required under 
     section 7303(f) of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 194(f)) and achieving 
     interoperability at the city, county, regional, State, and 
     interstate levels. The Director shall make the reports 
     publicly available, including by making them available on the 
     Internet website of the Office of Emergency Communications, 
     subject to any redactions that the Director determines are 
     necessary to protect classified or other sensitive 
     information.
       ``(2) Annual reports to congress.--At least once each year, 
     the Director of Emergency Communications shall submit to 
     Congress a report on the use of grants awarded under this 
     section and any progress in implementing Statewide 
     Interoperable Communications Plans and improving 
     interoperability at the city, county, regional, State, and 
     interstate level, as a result of the award of such grants.
       ``(n) Rule of Construction.--Nothing in this section shall 
     be construed or interpreted to preclude a State from using a 
     grant awarded under this section for interim or long-term 
     Internet Protocol-based interoperable solutions.
       ``(o) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this section--
       ``(1) for fiscal year 2008, such sums as may be necessary;
       ``(2) for each of fiscal years 2009 through 2012, 
     $400,000,000; and
       ``(3) for each subsequent fiscal year, such sums as may be 
     necessary.''.
       (b) Clerical Amendment.-- The table of contents in section 
     l(b) of such Act is amended by inserting after the item 
     relating to section 1808 the following:

``Sec. 1809. Interoperable Emergency Communications Grant Program.''.
       (c) Interoperable Communications Plans.--Section 7303 of 
     the Intelligence Reform and Terrorist Prevention Act of 2004 
     (6 U.S.C. 194) is amended--
       (1) in subsection (f)--
       (A) in paragraph (4), by striking ``and'' at the end;
       (B) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(6) include information on the governance structure used 
     to develop the plan, including such information about all 
     agencies and organizations that participated in developing 
     the plan and the scope and timeframe of the plan; and
       ``(7) describe the method by which multi-jurisdictional, 
     multidisciplinary input is provided from all regions of the 
     jurisdiction, including any high-threat urban areas located 
     in the jurisdiction, and the process for continuing to 
     incorporate such input.'';
       (2) in subsection (g)(1), by striking ``or video'' and 
     inserting ``and video''.
       (d) National Emergency Communications Plan.--Section 
     1802(c) of the Homeland Security Act of 2002 (6 U.S.C. 
     652(c)) is amended--
       (1) in paragraph (8), by striking ``and'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(10) set a date, including interim benchmarks, as 
     appropriate, by which State, local, and tribal governments, 
     Federal departments and agencies, and emergency response 
     providers expect to achieve a baseline level of national 
     interoperable communications, as that term is defined under 
     section 7303(g)(1) of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 194(g)(1)).''.

     SEC. 302. BORDER INTEROPERABILITY DEMONSTRATION PROJECT.

       (a) In General.--Title XVIII of the Homeland Security Act 
     of 2002 (6 U.S.C. 571 et seq.) is amended by adding at the 
     end the following new section:

     ``SEC. 1810. BORDER INTEROPERABILITY DEMONSTRATION PROJECT.

       ``(a) In General.--
       ``(1) Establishment.--The Secretary, acting through the 
     Director of the Office of Emergency Communications (referred 
     to in this section as the `Director'), and in coordination 
     with the Federal Communications Commission and the Secretary 
     of Commerce, shall establish an International Border 
     Community Interoperable Communications Demonstration Project 
     (referred to in this section as the `demonstration project').
       ``(2) Minimum number of communities.--The Director shall 
     select no fewer than 6 communities to participate in a 
     demonstration project.
       ``(3) Location of communities.--No fewer than 3 of the 
     communities selected under paragraph (2) shall be located on 
     the northern border of the United States and no fewer than 3 
     of the communities selected under paragraph (2) shall be 
     located on the southern border of the United States.
       ``(b) Conditions.--The Director, in coordination with the 
     Federal Communications Commission and the Secretary of 
     Commerce, shall ensure that the project is carried out as 
     soon as adequate spectrum is available as a result of the 800 
     megahertz rebanding process in border areas, and shall ensure 
     that the border projects do not impair or impede the 
     rebanding process, but under no circumstances shall funds be 
     distributed under this section unless the Federal 
     Communications Commission and the Secretary of Commerce agree 
     that these conditions have been met.
       ``(c) Program Requirements.--Consistent with the 
     responsibilities of the Office of Emergency Communications 
     under section 1801, the Director shall foster local, tribal, 
     State, and Federal interoperable emergency communications, as 
     well as interoperable emergency communications with 
     appropriate Canadian and Mexican authorities in the 
     communities selected for the demonstration project. The 
     Director shall--
       ``(1) identify solutions to facilitate interoperable 
     communications across national borders expeditiously;
       ``(2) help ensure that emergency response providers can 
     communicate with each other in the event of natural 
     disasters, acts of terrorism, and other man-made disasters;
       ``(3) provide technical assistance to enable emergency 
     response providers to deal with threats and contingencies in 
     a variety of environments;
       ``(4) identify appropriate joint-use equipment to ensure 
     communications access;
       ``(5) identify solutions to facilitate communications 
     between emergency response providers in communities of 
     differing population densities; and
       ``(6) take other actions or provide equipment as the 
     Director deems appropriate to foster interoperable emergency 
     communications.
       ``(d) Distribution of Funds.--
       ``(1) In general.--The Secretary shall distribute funds 
     under this section to each community participating in the 
     demonstration project through the State, or States, in which 
     each community is located.
       ``(2) Other participants.--A State shall make the funds 
     available promptly to the local and tribal governments and 
     emergency response providers selected by the Secretary to 
     participate in the demonstration project.
       ``(3) Report.--Not later than 90 days after a State 
     receives funds under this subsection the State shall report 
     to the Director on the status of the distribution of such 
     funds to local and tribal governments.
       ``(e) Maximum Period of Grants.--The Director may not fund 
     any participant under the demonstration project for more than 
     3 years.
       ``(f) Transfer of Information and Knowledge.--The Director 
     shall establish mechanisms to ensure that the information and 
     knowledge gained by participants in the demonstration project 
     are transferred among the participants and to other 
     interested parties, including other communities that 
     submitted applications to the participant in the project.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated for grants under this section such sums as 
     may be necessary.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of that Act is amended by inserting after the item 
     relating to section 1809 the following:

``Sec. 1810. Border interoperability demonstration project.''.

       TITLE IV--STRENGTHENING USE OF THE INCIDENT COMMAND SYSTEM

     SEC. 401. DEFINITIONS.

       (a) In General.--Section 501 of the Homeland Security Act 
     of 2002 (6 U.S.C. 311) is amended--
       (1) by redesignating paragraphs (10) and (11) as paragraphs 
     (12) and (13), respectively;
       (2) by redesignating paragraphs (4) through (9) as 
     paragraphs (5) through (10), respectively;
       (3) by inserting after paragraph (3) the following:
       ``(4) the terms `credentialed' and `credentialing' mean 
     having provided, or providing, respectively, documentation 
     that identifies personnel and authenticates and verifies the

[[Page 20653]]

     qualifications of such personnel by ensuring that such 
     personnel possess a minimum common level of training, 
     experience, physical and medical fitness, and capability 
     appropriate for a particular position in accordance with 
     standards created under section 510;'';
       (4) by inserting after paragraph (10), as so redesignated, 
     the following:
       ``(11) the term `resources' means personnel and major items 
     of equipment, supplies, and facilities available or 
     potentially available for responding to a natural disaster, 
     act of terrorism, or other man-made disaster;'';
       (5) in paragraph (12), as so redesignated, by striking 
     ``and'' at the end;
       (6) in paragraph (13), as so redesignated, by striking the 
     period at the end and inserting ``; and''; and
       (7) by adding at the end the following:
       ``(14) the terms `typed' and `typing' mean having 
     evaluated, or evaluating, respectively, a resource in 
     accordance with standards created under section 510.''.
       (b) Technical and Conforming Amendments.--Section 641 of 
     the Post-Katrina Emergency Management Reform Act of 2006 (6 
     U.S.C. 741) is amended--
       (1) by redesignating paragraphs (2) through (10) as 
     paragraphs (3) through (11), respectively;
       (2) by inserting after paragraph (1) the following:
       ``(2) Credentialed; credentialing.--The terms 
     `credentialed' and `credentialing' have the meanings given 
     those terms in section 501 of the Homeland Security Act of 
     2002 (6 U.S.C. 311).''; and
       (3) by adding at the end the following:
       ``(12) Resources.--The term `resources' has the meaning 
     given that term in section 501 of the Homeland Security Act 
     of 2002 (6 U.S.C. 311).
       ``(13) Type.--The term `type' means a classification of 
     resources that refers to the capability of a resource.
       ``(14) Typed; typing.--The terms `typed' and `typing' have 
     the meanings given those terms in section 501 of the Homeland 
     Security Act of 2002 (6 U.S.C. 311).''.

     SEC. 402. NATIONAL EXERCISE PROGRAM DESIGN.

       Section 648(b)(2)(A) of the Post-Katrina Emergency 
     Management Reform Act of 2006 (6 U.S.C. 748(b)(2)(A)) is 
     amended by striking clauses (iv) and (v) and inserting the 
     following:
       ``(iv) designed to provide for the systematic evaluation of 
     readiness and enhance operational understanding of the 
     incident command system and relevant mutual aid agreements;
       ``(v) designed to address the unique requirements of 
     populations with special needs, including the elderly; and
       ``(vi) designed to promptly develop after-action reports 
     and plans for quickly incorporating lessons learned into 
     future operations; and''.

     SEC. 403. NATIONAL EXERCISE PROGRAM MODEL EXERCISES.

       Section 648(b)(2)(B) of the Post-Katrina Emergency 
     Management Reform Act of 2006 (6 U.S.C. 748(b)(2)(B)) is 
     amended by striking ``shall provide'' and all that follows 
     through ``of exercises'' and inserting the following: ``shall 
     include a selection of model exercises that State, local, and 
     tribal governments can readily adapt for use and provide 
     assistance to State, local, and tribal governments with the 
     design, implementation, and evaluation of exercises (whether 
     a model exercise program or an exercise designed locally)''.

     SEC. 404. PREIDENTIFYING AND EVALUATING MULTIJURISDICTIONAL 
                   FACILITIES TO STRENGTHEN INCIDENT COMMAND; 
                   PRIVATE SECTOR PREPAREDNESS.

       Section 507(c)(2) of the Homeland Security Act of 2002 (6 
     U.S.C. 317(c)(2)) is amended--
       (1) in subparagraph (H) by striking ``and'' at the end;
       (2) by redesignating subparagraph (I) as subparagraph (K); 
     and
       (3) by inserting after subparagraph (H) the following:
       ``(I) coordinating with the private sector to help ensure 
     private sector preparedness for natural disasters, acts of 
     terrorism, and other man-made disasters;
       ``(J) assisting State, local, and tribal governments, where 
     appropriate, to preidentify and evaluate suitable sites where 
     a multijurisdictional incident command system may quickly be 
     established and operated from, if the need for such a system 
     arises; and''.

     SEC. 405. FEDERAL RESPONSE CAPABILITY INVENTORY.

       Section 651 of the Post-Katrina Emergency Management Reform 
     Act of 2006 (6 U.S.C. 751) is amended--
       (1) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``The inventory'' and inserting ``For each Federal agency 
     with responsibilities under the National Response Plan, the 
     inventory'';
       (B) in paragraph (1), by striking ``and'' at the end;
       (C) by redesignating paragraph (2) as paragraph (4); and
       (D) by inserting after paragraph (1) the following:
       ``(2) a list of personnel credentialed in accordance with 
     section 510 of the Homeland Security Act of 2002 (6 U.S.C. 
     320);
       ``(3) a list of resources typed in accordance with section 
     510 of the Homeland Security Act of 2002 (6 U.S.C. 320); 
     and''; and
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``capabilities, 
     readiness'' and all that follows and inserting the following: 
     ``--
       ``(A) capabilities;
       ``(B) readiness;
       ``(C) the compatibility of equipment;
       ``(D) credentialed personnel; and
       ``(E) typed resources;'';
       (B) in paragraph (2), by inserting ``of capabilities, 
     credentialed personnel, and typed resources'' after ``rapid 
     deployment''; and
       (C) in paragraph (3), by striking ``inventories'' and 
     inserting ``the inventory described in subsection (a)''.

     SEC. 406. REPORTING REQUIREMENTS.

       Section 652(a)(2) of the Post-Katrina Emergency Management 
     Reform Act of 2006 (6 U.S.C. 752(a)(2)), as amended by 
     section 103, is further amended--
       (1) in subparagraph (C), by striking ``section 651(a);'' 
     and inserting ``section 651, including the number and type of 
     credentialed personnel in each category of personnel trained 
     and ready to respond to a natural disaster, act of terrorism, 
     or other man-made disaster;'';
       (2) in subparagraph (D), by striking ``and'' at the end;
       (3) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(F) a discussion of whether the list of credentialed 
     personnel of the Agency described in section 651(b)(2)--
       ``(i) complies with the strategic human capital plan 
     developed under section 10102 of title 5, United States Code; 
     and
       ``(ii) is sufficient to respond to a natural disaster, act 
     of terrorism, or other man-made disaster, including a 
     catastrophic incident.''.

     SEC. 407. FEDERAL PREPAREDNESS.

       Section 653 of the Post-Katrina Emergency Management Reform 
     Act of 2006 (6 U.S.C. 753) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``coordinating, primary, or supporting'';
       (B) in paragraph (2), by inserting ``, including 
     credentialing of personnel and typing of resources likely 
     needed to respond to a natural disaster, act of terrorism, or 
     other man-made disaster in accordance with section 510 of the 
     Homeland Security Act of 2002 (6 U.S.C. 320)'' before the 
     semicolon at the end;
       (C) in paragraph (3), by striking ``and'' at the end;
       (D) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(5) regularly updates, verifies the accuracy of, and 
     provides to the Administrator the information in the 
     inventory required under section 651.''; and
       (2) in subsection (d)--
       (A) by inserting ``to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Homeland Security and the Committee on Transportation and 
     Infrastructure of the House of Representatives'' after ``The 
     President shall certify''; and
       (B) by striking ``coordinating, primary, or supporting''.

     SEC. 408. CREDENTIALING AND TYPING.

       Section 510 of the Homeland Security Act of 2002 (6 U.S.C. 
     320) is amended--
       (1) by striking ``The Administrator'' and inserting the 
     following:
       ``(a) In General.--The Administrator'';
       (2) in subsection (a), as so designated, by striking 
     ``credentialing of personnel and typing of'' and inserting 
     ``for credentialing and typing of incident management 
     personnel, emergency response providers, and other personnel 
     (including temporary personnel) and''; and
       (3) by adding at the end the following:
       ``(b) Distribution.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Administrator shall provide the 
     standards developed under subsection (a), including detailed 
     written guidance, to--
       ``(A) each Federal agency that has responsibilities under 
     the National Response Plan to aid that agency with 
     credentialing and typing incident management personnel, 
     emergency response providers, and other personnel (including 
     temporary personnel) and resources likely needed to respond 
     to a natural disaster, act of terrorism, or other man-made 
     disaster; and
       ``(B) State, local, and tribal governments, to aid such 
     governments with credentialing and typing of State, local, 
     and tribal incident management personnel, emergency response 
     providers, and other personnel (including temporary 
     personnel) and resources likely needed to respond to a 
     natural disaster, act of terrorism, or other man-made 
     disaster.
       ``(2) Assistance.--The Administrator shall provide 
     expertise and technical assistance to aid Federal, State, 
     local, and tribal government agencies with credentialing and 
     typing incident management personnel, emergency response 
     providers, and other personnel (including temporary 
     personnel) and resources likely needed to respond to a 
     natural disaster, act of terrorism, or other man-made 
     disaster.
       ``(c) Credentialing and Typing of Personnel.--Not later 
     than 6 months after receiving the standards provided under 
     subsection (b), each Federal agency with responsibilities 
     under the National Response Plan shall ensure that incident 
     management personnel, emergency response providers, and other 
     personnel (including temporary personnel) and resources 
     likely needed to respond to a natural disaster, act of 
     terrorism, or other manmade disaster are credentialed and 
     typed in accordance with this section.
       ``(d) Consultation on Health Care Standards.--In developing 
     standards for credentialing health care professionals under 
     this section, the Administrator shall consult

[[Page 20654]]

     with the Secretary of Health and Human Services.''.

     SEC. 409. MODEL STANDARDS AND GUIDELINES FOR CRITICAL 
                   INFRASTRUCTURE WORKERS.

       (a) In General.--Title V of the Homeland Security Act of 
     2002 (6 U.S.C. 311 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 522. MODEL STANDARDS AND GUIDELINES FOR CRITICAL 
                   INFRASTRUCTURE WORKERS.

       ``(a) In General.--Not later than 12 months after the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, and in coordination with appropriate 
     national professional organizations, Federal, State, local, 
     and tribal government agencies, and private-sector and 
     nongovernmental entities, the Administrator shall establish 
     model standards and guidelines for credentialing critical 
     infrastructure workers that may be used by a State to 
     credential critical infrastructure workers that may respond 
     to a natural disaster, act of terrorism, or other man-made 
     disaster.
       ``(b) Distribution and Assistance.--The Administrator shall 
     provide the standards developed under subsection (a), 
     including detailed written guidance, to State, local, and 
     tribal governments, and provide expertise and technical 
     assistance to aid such governments with credentialing 
     critical infrastructure workers that may respond to a natural 
     disaster, act of terrorism, or other manmade disaster.''.
       (b) Technical and Conforming Amendment.--The table of 
     contents in section 1(b) of the Homeland Security Act of 2002 
     (6 U.S.C. 101(b)) is amended by inserting after the item 
     relating to section 521 the following:

       ``Sec. 522. Model standards and guidelines for critical 
           infrastructure workers.''.

     SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as 
     necessary to carry out this title and the amendments made by 
     this title.

  TITLE V--IMPROVING INTELLIGENCE AND INFORMATION SHARING WITHIN THE 
    FEDERAL GOVERNMENT AND WITH STATE, LOCAL, AND TRIBAL GOVERNMENTS

     Subtitle A--Homeland Security Information Sharing Enhancement

     SEC. 501. HOMELAND SECURITY ADVISORY SYSTEM AND INFORMATION 
                   SHARING.

       (a) Advisory System and Information Sharing.--
       (1) In general.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

       ``(a) Requirement.--The Secretary shall administer the 
     Homeland Security Advisory System in accordance with this 
     section to provide advisories or warnings regarding the 
     threat or risk that acts of terrorism will be committed on 
     the homeland to Federal, State, local, and tribal government 
     authorities and to the people of the United States, as 
     appropriate. The Secretary shall exercise primary 
     responsibility for providing such advisories or warnings.
       ``(b) Required Elements.--In administering the Homeland 
     Security Advisory System, the Secretary shall--
       ``(1) establish criteria for the issuance and revocation of 
     such advisories or warnings;
       ``(2) develop a methodology, relying on the criteria 
     established under paragraph (1), for the issuance and 
     revocation of such advisories or warnings;
       ``(3) provide, in each such advisory or warning, specific 
     information and advice regarding appropriate protective 
     measures and countermeasures that may be taken in response to 
     the threat or risk, at the maximum level of detail 
     practicable to enable individuals, government entities, 
     emergency response providers, and the private sector to act 
     appropriately;
       ``(4) whenever possible, limit the scope of each such 
     advisory or warning to a specific region, locality, or 
     economic sector believed to be under threat or at risk; and
       ``(5) not, in issuing any advisory or warning, use color 
     designations as the exclusive means of specifying homeland 
     security threat conditions that are the subject of the 
     advisory or warning.

     ``SEC. 204. HOMELAND SECURITY INFORMATION SHARING.

       ``(a) Information Sharing.--Consistent with section 1016 of 
     the Intelligence Reform and Terrorism Prevention Act of 2004 
     (6 U.S.C. 485), the Secretary, acting through the Under 
     Secretary for Intelligence and Analysis, shall integrate the 
     information and standardize the format of the products of the 
     intelligence components of the Department containing homeland 
     security information, terrorism information, weapons of mass 
     destruction information, or national intelligence (as defined 
     in section 3(5) of the National Security Act of 1947 (50 
     U.S.C. 401a(5))) except for any internal security protocols 
     or personnel information of such intelligence components, or 
     other administrative processes that are administered by any 
     chief security officer of the Department.
       ``(b) Information Sharing and Knowledge Management 
     Officers.--For each intelligence component of the Department, 
     the Secretary shall designate an information sharing and 
     knowledge management officer who shall report to the Under 
     Secretary for Intelligence and Analysis regarding 
     coordinating the different systems used in the Department to 
     gather and disseminate homeland security information or 
     national intelligence (as defined in section 3(5) of the 
     National Security Act of 1947 (50 U.S.C. 401a(5))).
       ``(c) State, Local, and Private-Sector Sources of 
     Information.--
       ``(1) Establishment of business processes.--The Secretary, 
     acting through the Under Secretary for Intelligence and 
     Analysis or the Assistant Secretary for Infrastructure 
     Protection, as appropriate, shall--
       ``(A) establish Department-wide procedures for the review 
     and analysis of information provided by State, local, and 
     tribal governments and the private sector;
       ``(B) as appropriate, integrate such information into the 
     information gathered by the Department and other departments 
     and agencies of the Federal Government; and
       ``(C) make available such information, as appropriate, 
     within the Department and to other departments and agencies 
     of the Federal Government.
       ``(2) Feedback.--The Secretary shall develop mechanisms to 
     provide feedback regarding the analysis and utility of 
     information provided by any entity of State, local, or tribal 
     government or the private sector that provides such 
     information to the Department.
       ``(d) Training and Evaluation of Employees.--
       ``(1) Training.--The Secretary, acting through the Under 
     Secretary for Intelligence and Analysis or the Assistant 
     Secretary for Infrastructure Protection, as appropriate, 
     shall provide to employees of the Department opportunities 
     for training and education to develop an understanding of--
       ``(A) the definitions of homeland security information and 
     national intelligence (as defined in section 3(5) of the 
     National Security Act of 1947 (50 U.S.C. 401a(5))); and
       ``(B) how information available to such employees as part 
     of their duties--
       ``(i) might qualify as homeland security information or 
     national intelligence; and
       ``(ii) might be relevant to the Office of Intelligence and 
     Analysis and the intelligence components of the Department.
       ``(2) Evaluations.--The Under Secretary for Intelligence 
     and Analysis shall--
       ``(A) on an ongoing basis, evaluate how employees of the 
     Office of Intelligence and Analysis and the intelligence 
     components of the Department are utilizing homeland security 
     information or national intelligence, sharing information 
     within the Department, as described in this title, and 
     participating in the information sharing environment 
     established under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485); and
       ``(B) provide to the appropriate component heads regular 
     reports regarding the evaluations under subparagraph (A).

     ``SEC. 205. COMPREHENSIVE INFORMATION TECHNOLOGY NETWORK 
                   ARCHITECTURE.

       ``(a) Establishment.--The Secretary, acting through the 
     Under Secretary for Intelligence and Analysis, shall 
     establish, consistent with the policies and procedures 
     developed under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485), and 
     consistent with the enterprise architecture of the 
     Department, a comprehensive information technology network 
     architecture for the Office of Intelligence and Analysis that 
     connects the various databases and related information 
     technology assets of the Office of Intelligence and Analysis 
     and the intelligence components of the Department in order to 
     promote internal information sharing among the intelligence 
     and other personnel of the Department.
       ``(b) Comprehensive Information Technology Network 
     Architecture Defined.--The term `comprehensive information 
     technology network architecture' means an integrated 
     framework for evolving or maintaining existing information 
     technology and acquiring new information technology to 
     achieve the strategic management and information resources 
     management goals of the Office of Intelligence and Analysis.

     ``SEC. 206. COORDINATION WITH INFORMATION SHARING 
                   ENVIRONMENT.

       ``(a) Guidance.--All activities to comply with sections 
     203, 204, and 205 shall be--
       ``(1) consistent with any policies, guidelines, procedures, 
     instructions, or standards established under section 1016 of 
     the Intelligence Reform and Terrorism Prevention Act of 2004 
     (6 U.S.C. 485);
       ``(2) implemented in coordination with, as appropriate, the 
     program manager for the information sharing environment 
     established under that section;
       ``(3) consistent with any applicable guidance issued by the 
     Director of National Intelligence; and
       ``(4) consistent with any applicable guidance issued by the 
     Secretary relating to the protection of law enforcement 
     information or proprietary information.
       ``(b) Consultation.--In carrying out the duties and 
     responsibilities under this subtitle, the Under Secretary for 
     Intelligence and Analysis shall take into account the views 
     of the heads of the intelligence components of the 
     Department.''.
       (2) Technical and conforming amendments.--
       (A) In general.--Section 201(d) of the Homeland Security 
     Act of 2002 (6 U.S.C. 121(d)) is amended--
       (i) by striking paragraph (7); and
       (ii) by redesignating paragraphs (8) through (19) as 
     paragraphs (7) through (18), respectively.
       (B) Table of contents.--The table of contents in section 
     1(b) of the Homeland Security

[[Page 20655]]

     Act of 2002 (6 U.S.C. 101 et seq.) is amended by inserting 
     after the item relating to section 202 the following:

       ``Sec. 203. Homeland Security Advisory System.
       ``Sec. 204. Homeland security information sharing.
       ``Sec. 205. Comprehensive information technology network 
           architecture.
       ``Sec. 206. Coordination with information sharing 
           environment.''.

       (b) Office of Intelligence and Analysis and Office of 
     Infrastructure Protection.--Section 201(d) of the Homeland 
     Security Act of 2002 (6 U.S.C. 121(d)) is amended--
       (1) in paragraph (1), by inserting ``, in support of the 
     mission responsibilities of the Department and the functions 
     of the National Counterterrorism Center established under 
     section 119 of the National Security Act of 1947 (50 U.S.C. 
     404o),'' after ``and to integrate such information''; and
       (2) by striking paragraph (7), as redesignated by 
     subsection (a)(2)(A)(ii) of this section, and inserting the 
     following:
       ``(7) To review, analyze, and make recommendations for 
     improvements to the policies and procedures governing the 
     sharing of information within the scope of the information 
     sharing environment established under section 1016 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 (6 
     U.S.C. 485), including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information, and any policies, guidelines, procedures, 
     instructions, or standards established under that section.''.
       (c) Report on Comprehensive Information Technology Network 
     Architecture.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report on 
     the progress of the Secretary in developing the comprehensive 
     information technology network architecture required under 
     section 205 of the Homeland Security Act of 2002, as added by 
     subsection (a). The report shall include:
       (1) a description of the priorities for the development of 
     the comprehensive information technology network architecture 
     and a rationale for such priorities;
       (2) an explanation of how the various components of the 
     comprehensive information technology network architecture 
     will work together and interconnect;
       (3) a description of the technological challenges that the 
     Secretary expects the Office of Intelligence and Analysis 
     will face in implementing the comprehensive information 
     technology network architecture;
       (4) a description of the technological options that are 
     available or are in development that may be incorporated into 
     the comprehensive information technology network 
     architecture, the feasibility of incorporating such options, 
     and the advantages and disadvantages of doing so;
       (5) an explanation of any security protections to be 
     developed as part of the comprehensive information technology 
     network architecture;
       (6) a description of safeguards for civil liberties and 
     privacy to be built into the comprehensive information 
     technology network architecture; and
       (7) an operational best practices plan.

     SEC. 502. INTELLIGENCE COMPONENT DEFINED.

       (a) In General.--Section 2 of the Homeland Security Act of 
     2002 (6 U.S.C. 101) is amended--
       (1) by redesignating paragraphs (9) through (16) as 
     paragraphs (10) through (17), respectively; and
       (2) by inserting after paragraph (8) the following:
       ``(9) The term `intelligence component of the Department' 
     means any element or entity of the Department that collects, 
     gathers, processes, analyzes, produces, or disseminates 
     intelligence information within the scope of the information 
     sharing environment, including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information, or national intelligence, as defined under 
     section 3(5) of the National Security Act of 1947 (50 U.S.C. 
     401a(5)), except--
       ``(A) the United States Secret Service; and
       ``(B) the Coast Guard, when operating under the direct 
     authority of the Secretary of Defense or Secretary of the 
     Navy pursuant to section 3 of title 14, United States Code, 
     except that nothing in this paragraph shall affect or 
     diminish the authority and responsibilities of the Commandant 
     of the Coast Guard to command or control the Coast Guard as 
     an armed force or the authority of the Director of National 
     Intelligence with respect to the Coast Guard as an element of 
     the intelligence community (as defined under section 3(4) of 
     the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
       (b) Receipt of Information From United States Secret 
     Service.--
       (1) In general.--The Under Secretary for Intelligence and 
     Analysis shall receive from the United States Secret Service 
     homeland security information, terrorism information, weapons 
     of mass destruction information (as these terms are defined 
     in Section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485)), or national 
     intelligence, as defined in Section 3(5) of the National 
     Security Act of 1947 (50 U.S.C. 401a(5)), as well as suspect 
     information obtained in criminal investigations. The United 
     States Secret Service shall cooperate with the Under 
     Secretary for Intelligence and Analysis with respect to 
     activities under sections 204 and 205 of the Homeland 
     Security Act of 2002.
       (2) Savings clause.--Nothing in this Act shall interfere 
     with the operation of Section 3056(g) of Title 18, United 
     States Code, or with the authority of the Secretary of 
     Homeland Security or the Director of the United States Secret 
     Service regarding the budget of the United States Secret 
     Service.
       (c) Technical and Conforming Amendments.--
       (1) Homeland security act of 2002.--Paragraph (13) of 
     section 501 of the Homeland Security Act of 2002 (6 U.S.C. 
     311), as redesignated by section 401, is amended by striking 
     ``section 2(10)(B)'' and inserting ``section 2(11)(B)''.
       (2) Other law.--Section 712(a) of title 14, United States 
     Code, is amended by striking ``section 2(15) of the Homeland 
     Security Act of 2002 (6 U.S.C. 101(15))'' and inserting 
     ``section 2(16) of the Homeland Security Act of 2002 (6 
     U.S.C. 101(16))''.

     SEC. 503. ROLE OF INTELLIGENCE COMPONENTS, TRAINING, AND 
                   INFORMATION SHARING.

       (a) In General.--Subtitle A of title II of the Homeland 
     Security Act of 2002 is further amended by adding at the end 
     the following:

     ``SEC. 207. INTELLIGENCE COMPONENTS.

       ``Subject to the direction and control of the Secretary, 
     and consistent with any applicable guidance issued by the 
     Director of National Intelligence, the responsibilities of 
     the head of each intelligence component of the Department are 
     as follows:
       ``(1) To ensure that the collection, processing, analysis, 
     and dissemination of information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, weapons of mass 
     destruction information, and national intelligence (as 
     defined in section 3(5) of the National Security Act of 1947 
     (50 U.S.C. 401a(5))), are carried out effectively and 
     efficiently in support of the intelligence mission of the 
     Department, as led by the Under Secretary for Intelligence 
     and Analysis.
       ``(2) To otherwise support and implement the intelligence 
     mission of the Department, as led by the Under Secretary for 
     Intelligence and Analysis.
       ``(3) To incorporate the input of the Under Secretary for 
     Intelligence and Analysis with respect to performance 
     appraisals, bonus or award recommendations, pay adjustments, 
     and other forms of commendation.
       ``(4) To coordinate with the Under Secretary for 
     Intelligence and Analysis in developing policies and 
     requirements for the recruitment and selection of 
     intelligence officials of the intelligence component.
       ``(5) To advise and coordinate with the Under Secretary for 
     Intelligence and Analysis on any plan to reorganize or 
     restructure the intelligence component that would, if 
     implemented, result in realignments of intelligence 
     functions.
       ``(6) To ensure that employees of the intelligence 
     component have knowledge of, and comply with, the programs 
     and policies established by the Under Secretary for 
     Intelligence and Analysis and other appropriate officials of 
     the Department and that such employees comply with all 
     applicable laws and regulations.
       ``(7) To perform such other activities relating to such 
     responsibilities as the Secretary may provide.

     ``SEC. 208. TRAINING FOR EMPLOYEES OF INTELLIGENCE 
                   COMPONENTS.

       ``The Secretary shall provide training and guidance for 
     employees, officials, and senior executives of the 
     intelligence components of the Department to develop 
     knowledge of laws, regulations, operations, policies, 
     procedures, and programs that are related to the functions of 
     the Department relating to the collection, processing, 
     analysis, and dissemination of information within the scope 
     of the information sharing environment, including homeland 
     security information, terrorism information, and weapons of 
     mass destruction information, or national intelligence (as 
     defined in section 3(5) of the National Security Act of 1947 
     (50 U.S.C. 401a(5))).

     ``SEC. 209. INTELLIGENCE TRAINING DEVELOPMENT FOR STATE AND 
                   LOCAL GOVERNMENT OFFICIALS.

       ``(a) Curriculum.--The Secretary, acting through the Under 
     Secretary for Intelligence and Analysis, shall--
       ``(1) develop a curriculum for training State, local, and 
     tribal government officials, including law enforcement 
     officers, intelligence analysts, and other emergency response 
     providers, in the intelligence cycle and Federal laws, 
     practices, and regulations regarding the development, 
     handling, and review of intelligence and other information; 
     and
       ``(2) ensure that the curriculum includes executive level 
     training for senior level State, local, and tribal law 
     enforcement officers, intelligence analysts, and other 
     emergency response providers.
       ``(b) Training.--To the extent possible, the Federal Law 
     Enforcement Training Center and other existing Federal 
     entities with the capacity and expertise to train State, 
     local, and tribal government officials based on the 
     curriculum developed under subsection (a) shall be used to 
     carry out the training programs created under this section. 
     If such entities do not have the capacity, resources, or 
     capabilities to conduct such training, the Secretary may 
     approve another entity to conduct such training.
       ``(c) Consultation.--In carrying out the duties described 
     in subsection (a), the Under Secretary for Intelligence and 
     Analysis shall consult with the Director of the Federal Law 
     Enforcement Training Center, the Attorney General, the 
     Director of National Intelligence, the

[[Page 20656]]

     Administrator of the Federal Emergency Management Agency, and 
     other appropriate parties, such as private industry, 
     institutions of higher education, nonprofit institutions, and 
     other intelligence agencies of the Federal Government.

     ``SEC. 210. INFORMATION SHARING INCENTIVES.

       ``(a) Awards.--In making cash awards under chapter 45 of 
     title 5, United States Code, the President or the head of an 
     agency, in consultation with the program manager designated 
     under section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485), may consider the 
     success of an employee in appropriately sharing information 
     within the scope of the information sharing environment 
     established under that section, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information, or national intelligence (as defined 
     in section 3(5) of the National Security Act of 1947 (50 
     U.S.C. 401a(5)), in a manner consistent with any policies, 
     guidelines, procedures, instructions, or standards 
     established by the President or, as appropriate, the program 
     manager of that environment for the implementation and 
     management of that environment.
       ``(b) Other Incentives.--The head of each department or 
     agency described in section 1016(i) of the Intelligence 
     Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 
     485(i)), in consultation with the program manager designated 
     under section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485), shall adopt best 
     practices regarding effective ways to educate and motivate 
     officers and employees of the Federal Government to 
     participate fully in the information sharing environment, 
     including--
       ``(1) promotions and other nonmonetary awards; and
       ``(2) publicizing information sharing accomplishments by 
     individual employees and, where appropriate, the tangible end 
     benefits that resulted.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et 
     seq.) is amended further by inserting after the item relating 
     to section 206 the following:

       ``Sec. 207. Intelligence components.
       ``Sec. 208. Training for employees of intelligence 
           components.
       ``Sec. 209. Intelligence training development for State and 
           local government officials.
       ``Sec. 210. Information sharing incentives.''.

     SEC. 504. INFORMATION SHARING.

       Section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (1) through (4) as 
     paragraphs (2) through (5), respectively;
       (B) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) Homeland security information.--The term `homeland 
     security information' has the meaning given that term in 
     section 892(f) of the Homeland Security Act of 2002 (6 U.S.C. 
     482(f)).'';
       (C) by striking paragraph (3), as so redesignated, and 
     inserting the following:
       ``(3) Information sharing environment.--The terms 
     `information sharing environment' and `ISE' mean an approach 
     that facilitates the sharing of terrorism and homeland 
     security information, which may include any method determined 
     necessary and appropriate for carrying out this section.''.
       (D) by striking paragraph (5), as so redesignated, and 
     inserting the following:
       ``(5) Terrorism information.--The term `terrorism 
     information'--
       ``(A) means all information, whether collected, produced, 
     or distributed by intelligence, law enforcement, military, 
     homeland security, or other activities relating to--
       ``(i) the existence, organization, capabilities, plans, 
     intentions, vulnerabilities, means of finance or material 
     support, or activities of foreign or international terrorist 
     groups or individuals, or of domestic groups or individuals 
     involved in transnational terrorism;
       ``(ii) threats posed by such groups or individuals to the 
     United States, United States persons, or United States 
     interests, or to those of other nations;
       ``(iii) communications of or by such groups or individuals; 
     or
       ``(iv) groups or individuals reasonably believed to be 
     assisting or associated with such groups or individuals; and
       ``(B) includes weapons of mass destruction information.''; 
     and
       (E) by adding at the end the following:
       ``(6) Weapons of mass destruction information.--The term 
     `weapons of mass destruction information' means information 
     that could reasonably be expected to assist in the 
     development, proliferation, or use of a weapon of mass 
     destruction (including a chemical, biological, radiological, 
     or nuclear weapon) that could be used by a terrorist or a 
     terrorist organization against the United States, including 
     information about the location of any stockpile of nuclear 
     materials that could be exploited for use in such a weapon 
     that could be used by a terrorist or a terrorist organization 
     against the United States.'';
       (2) in subsection (b)(2)--
       (A) in subparagraph (H), by striking ``and'' at the end;
       (B) in subparagraph (I), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(J) integrates the information within the scope of the 
     information sharing environment, including any such 
     information in legacy technologies;
       ``(K) integrates technologies, including all legacy 
     technologies, through Internet-based services, consistent 
     with appropriate security protocols and safeguards, to enable 
     connectivity among required users at the Federal, State, and 
     local levels;
       ``(L) allows the full range of analytic and operational 
     activities without the need to centralize information within 
     the scope of the information sharing environment;
       ``(M) permits analysts to collaborate both independently 
     and in a group (commonly known as `collective and 
     noncollective collaboration'), and across multiple levels of 
     national security information and controlled unclassified 
     information;
       ``(N) provides a resolution process that enables changes by 
     authorized officials regarding rules and policies for the 
     access, use, and retention of information within the scope of 
     the information sharing environment; and
       ``(O) incorporates continuous, real-time, and immutable 
     audit capabilities, to the maximum extent practicable.'';
       (3) in subsection (f)--
       (A) in paragraph (1)--
       (i) by striking ``during the two-year period beginning on 
     the date of designation under this paragraph unless sooner 
     removed from service and replaced'' and inserting ``until 
     removed from service or replaced''; and
       (ii) by striking ``The program manager shall have and 
     exercise governmentwide authority.'' and inserting ``The 
     program manager, in consultation with the head of any 
     affected department or agency, shall have and exercise 
     governmentwide authority over the sharing of information 
     within the scope of the information sharing environment, 
     including homeland security information, terrorism 
     information, and weapons of mass destruction information, by 
     all Federal departments, agencies, and components, 
     irrespective of the Federal department, agency, or component 
     in which the program manager may be administratively located, 
     except as otherwise expressly provided by law.''; and
       (B) in paragraph (2)(A)--
       (i) by redesignating clause (iii) as clause (v); and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) assist in the development of policies, as 
     appropriate, to foster the development and proper operation 
     of the ISE;
       ``(iii) consistent with the direction and policies issued 
     by the President, the Director of National Intelligence, and 
     the Director of the Office of Management and Budget, issue 
     governmentwide procedures, guidelines, instructions, and 
     functional standards, as appropriate, for the management, 
     development, and proper operation of the ISE;
       ``(iv) identify and resolve information sharing disputes 
     between Federal departments, agencies, and components; and'';
       (4) in subsection (g)--
       (A) in paragraph (1), by striking ``during the two-year 
     period beginning on the date of the initial designation of 
     the program manager by the President under subsection (f)(1), 
     unless sooner removed from service and replaced'' and 
     inserting ``until removed from service or replaced'';
       (B) in paragraph (2)--
       (i) in subparagraph (F), by striking ``and'' at the end;
       (ii) by redesignating subparagraph (G) as subparagraph (I); 
     and
       (iii) by inserting after subparagraph (F) the following:
       ``(G) assist the program manager in identifying and 
     resolving information sharing disputes between Federal 
     departments, agencies, and components;
       ``(H) identify appropriate personnel for assignment to the 
     program manager to support staffing needs identified by the 
     program manager; and'';
       (C) in paragraph (4), by inserting ``(including any 
     subsidiary group of the Information Sharing Council)'' before 
     ``shall not be subject''; and
       (D) by adding at the end the following:
       ``(5) Detailees.--Upon a request by the Director of 
     National Intelligence, the departments and agencies 
     represented on the Information Sharing Council shall detail 
     to the program manager, on a reimbursable basis, appropriate 
     personnel identified under paragraph (2)(H).'';
       (5) in subsection (h)(1), by striking ``and annually 
     thereafter'' and inserting ``and not later than June 30 of 
     each year thereafter''; and
       (6) by striking subsection (j) and inserting the following:
       ``(j) Report on the Information Sharing Environment.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the President shall report to the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate, the Select Committee on Intelligence of the 
     Senate, the Committee on Homeland Security of the House of 
     Representatives, and the Permanent Select Committee on 
     Intelligence of the House of Representatives on the 
     feasibility of--
       ``(A) eliminating the use of any marking or process 
     (including `Originator Control') intended to, or having the 
     effect of, restricting the sharing of information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, between and among 
     participants in the

[[Page 20657]]

     information sharing environment, unless the President has--
       ``(i) specifically exempted categories of information from 
     such elimination; and
       ``(ii) reported that exemption to the committees of 
     Congress described in the matter preceding this subparagraph; 
     and
       ``(B) continuing to use Federal agency standards in effect 
     on such date of enactment for the collection, sharing, and 
     access to information within the scope of the information 
     sharing environment, including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information, relating to citizens and lawful permanent 
     residents;
       ``(C) replacing the standards described in subparagraph (B) 
     with a standard that would allow mission-based or threat-
     based permission to access or share information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, for a particular 
     purpose that the Federal Government, through an appropriate 
     process established in consultation with the Privacy and 
     Civil Liberties Oversight Board established under section 
     1061, has determined to be lawfully permissible for a 
     particular agency, component, or employee (commonly known as 
     an `authorized use' standard); and
       ``(D) the use of anonymized data by Federal departments, 
     agencies, or components collecting, possessing, 
     disseminating, or handling information within the scope of 
     the information sharing environment, including homeland 
     security information, terrorism information, and weapons of 
     mass destruction information, in any cases in which--
       ``(i) the use of such information is reasonably expected to 
     produce results materially equivalent to the use of 
     information that is transferred or stored in a non-anonymized 
     form; and
       ``(ii) such use is consistent with any mission of that 
     department, agency, or component (including any mission under 
     a Federal statute or directive of the President) that 
     involves the storage, retention, sharing, or exchange of 
     personally identifiable information.
       ``(2) Definition.--In this subsection, the term `anonymized 
     data' means data in which the individual to whom the data 
     pertains is not identifiable with reasonable efforts, 
     including information that has been encrypted or hidden 
     through the use of other technology.
       ``(k) Additional Positions.--The program manager is 
     authorized to hire not more than 40 full-time employees to 
     assist the program manager in--
       ``(1) activities associated with the implementation of the 
     information sharing environment, including--
       ``(A) implementing the requirements under subsection 
     (b)(2); and
       ``(B) any additional implementation initiatives to enhance 
     and expedite the creation of the information sharing 
     environment; and
       ``(2) identifying and resolving information sharing 
     disputes between Federal departments, agencies, and 
     components under subsection (f)(2)(A)(iv).
       ``(l) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2008 and 2009.''.

     Subtitle B--Homeland Security Information Sharing Partnerships

     SEC. 511. DEPARTMENT OF HOMELAND SECURITY STATE, LOCAL, AND 
                   REGIONAL FUSION CENTER INITIATIVE.

       (a) In General.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.) is further 
     amended by adding at the end the following:

     ``SEC. 210A. DEPARTMENT OF HOMELAND SECURITY STATE, LOCAL, 
                   AND REGIONAL FUSION CENTER INITIATIVE.

       ``(a) Establishment.--The Secretary, in consultation with 
     the program manager of the information sharing environment 
     established under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485), the Attorney 
     General, the Privacy Officer of the Department, the Officer 
     for Civil Rights and Civil Liberties of the Department, and 
     the Privacy and Civil Liberties Oversight Board established 
     under section 1061 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (5 U.S.C. 601 note), shall establish a 
     Department of Homeland Security State, Local, and Regional 
     Fusion Center Initiative to establish partnerships with 
     State, local, and regional fusion centers.
       ``(b) Department Support and Coordination.--Through the 
     Department of Homeland Security State, Local, and Regional 
     Fusion Center Initiative, and in coordination with the 
     principal officials of participating State, local, or 
     regional fusion centers and the officers designated as the 
     Homeland Security Advisors of the States, the Secretary 
     shall--
       ``(1) provide operational and intelligence advice and 
     assistance to State, local, and regional fusion centers;
       ``(2) support efforts to include State, local, and regional 
     fusion centers into efforts to establish an information 
     sharing environment;
       ``(3) conduct tabletop and live training exercises to 
     regularly assess the capability of individual and regional 
     networks of State, local, and regional fusion centers to 
     integrate the efforts of such networks with the efforts of 
     the Department;
       ``(4) coordinate with other relevant Federal entities 
     engaged in homeland security-related activities;
       ``(5) provide analytic and reporting advice and assistance 
     to State, local, and regional fusion centers;
       ``(6) review information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information, that is gathered by State, local, 
     and regional fusion centers, and to incorporate such 
     information, as appropriate, into the Department's own such 
     information;
       ``(7) provide management assistance to State, local, and 
     regional fusion centers;
       ``(8) serve as a point of contact to ensure the 
     dissemination of information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information;
       ``(9) facilitate close communication and coordination 
     between State, local, and regional fusion centers and the 
     Department;
       ``(10) provide State, local, and regional fusion centers 
     with expertise on Department resources and operations;
       ``(11) provide training to State, local, and regional 
     fusion centers and encourage such fusion centers to 
     participate in terrorism threat-related exercises conducted 
     by the Department; and
       ``(12) carry out such other duties as the Secretary 
     determines are appropriate.
       ``(c) Personnel Assignment.--
       ``(1) In general.--The Under Secretary for Intelligence and 
     Analysis shall, to the maximum extent practicable, assign 
     officers and intelligence analysts from components of the 
     Department to participating State, local, and regional fusion 
     centers.
       ``(2) Personnel sources.--Officers and intelligence 
     analysts assigned to participating fusion centers under this 
     subsection may be assigned from the following Department 
     components, in coordination with the respective component 
     head and in consultation with the principal officials of 
     participating fusion centers:
       ``(A) Office of Intelligence and Analysis.
       ``(B) Office of Infrastructure Protection.
       ``(C) Transportation Security Administration.
       ``(D) United States Customs and Border Protection.
       ``(E) United States Immigration and Customs Enforcement.
       ``(F) United States Coast Guard.
       ``(G) Other components of the Department, as determined by 
     the Secretary.
       ``(3) Qualifying criteria.--
       ``(A) In general.--The Secretary shall develop qualifying 
     criteria for a fusion center to participate in the assigning 
     of Department officers or intelligence analysts under this 
     section.
       ``(B) Criteria.--Any criteria developed under subparagraph 
     (A) may include--
       ``(i) whether the fusion center, through its mission and 
     governance structure, focuses on a broad counterterrorism 
     approach, and whether that broad approach is pervasive 
     through all levels of the organization;
       ``(ii) whether the fusion center has sufficient numbers of 
     adequately trained personnel to support a broad 
     counterterrorism mission;
       ``(iii) whether the fusion center has--

       ``(I) access to relevant law enforcement, emergency 
     response, private sector, open source, and national security 
     data; and
       ``(II) the ability to share and analytically utilize that 
     data for lawful purposes;

       ``(iv) whether the fusion center is adequately funded by 
     the State, local, or regional government to support its 
     counterterrorism mission; and
       ``(v) the relevancy of the mission of the fusion center to 
     the particular source component of Department officers or 
     intelligence analysts.
       ``(4) Prerequisite.--
       ``(A) Intelligence analysis, privacy, and civil liberties 
     training.--Before being assigned to a fusion center under 
     this section, an officer or intelligence analyst shall 
     undergo--
       ``(i) appropriate intelligence analysis or information 
     sharing training using an intelligence-led policing 
     curriculum that is consistent with--

       ``(I) standard training and education programs offered to 
     Department law enforcement and intelligence personnel; and
       ``(II) the Criminal Intelligence Systems Operating Policies 
     under part 23 of title 28, Code of Federal Regulations (or 
     any corresponding similar rule or regulation);

       ``(ii) appropriate privacy and civil liberties training 
     that is developed, supported, or sponsored by the Privacy 
     Officer appointed under section 222 and the Officer for Civil 
     Rights and Civil Liberties of the Department, in consultation 
     with the Privacy and Civil Liberties Oversight Board 
     established under section 1061 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (5 U.S.C. 601 note); and
       ``(iii) such other training prescribed by the Under 
     Secretary for Intelligence and Analysis.
       ``(B) Prior work experience in area.--In determining the 
     eligibility of an officer or intelligence analyst to be 
     assigned to a fusion center under this section, the Under 
     Secretary for Intelligence and Analysis shall consider the 
     familiarity of the officer or intelligence analyst with the 
     State, locality, or region, as determined by such factors as 
     whether the officer or intelligence analyst--
       ``(i) has been previously assigned in the geographic area; 
     or
       ``(ii) has previously worked with intelligence officials or 
     law enforcement or other emergency response providers from 
     that State, locality, or region.
       ``(5) Expedited security clearance processing.--The Under 
     Secretary for Intelligence and Analysis--

[[Page 20658]]

       ``(A) shall ensure that each officer or intelligence 
     analyst assigned to a fusion center under this section has 
     the appropriate security clearance to contribute effectively 
     to the mission of the fusion center; and
       ``(B) may request that security clearance processing be 
     expedited for each such officer or intelligence analyst and 
     may use available funds for such purpose.
       ``(6) Further qualifications.--Each officer or intelligence 
     analyst assigned to a fusion center under this section shall 
     satisfy any other qualifications the Under Secretary for 
     Intelligence and Analysis may prescribe.
       ``(d) Responsibilities.--An officer or intelligence analyst 
     assigned to a fusion center under this section shall--
       ``(1) assist law enforcement agencies and other emergency 
     response providers of State, local, and tribal governments 
     and fusion center personnel in using information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, to develop a 
     comprehensive and accurate threat picture;
       ``(2) review homeland security-relevant information from 
     law enforcement agencies and other emergency response 
     providers of State, local, and tribal government;
       ``(3) create intelligence and other information products 
     derived from such information and other homeland security-
     relevant information provided by the Department; and
       ``(4) assist in the dissemination of such products, as 
     coordinated by the Under Secretary for Intelligence and 
     Analysis, to law enforcement agencies and other emergency 
     response providers of State, local, and tribal government, 
     other fusion centers, and appropriate Federal agencies.
       ``(e) Border Intelligence Priority.--
       ``(1) In general.--The Secretary shall make it a priority 
     to assign officers and intelligence analysts under this 
     section from United States Customs and Border Protection, 
     United States Immigration and Customs Enforcement, and the 
     Coast Guard to participating State, local, and regional 
     fusion centers located in jurisdictions along land or 
     maritime borders of the United States in order to enhance the 
     integrity of and security at such borders by helping Federal, 
     State, local, and tribal law enforcement authorities to 
     identify, investigate, and otherwise interdict persons, 
     weapons, and related contraband that pose a threat to 
     homeland security.
       ``(2) Border intelligence products.--When performing the 
     responsibilities described in subsection (d), officers and 
     intelligence analysts assigned to participating State, local, 
     and regional fusion centers under this section shall have, as 
     a primary responsibility, the creation of border intelligence 
     products that--
       ``(A) assist State, local, and tribal law enforcement 
     agencies in deploying their resources most efficiently to 
     help detect and interdict terrorists, weapons of mass 
     destruction, and related contraband at land or maritime 
     borders of the United States;
       ``(B) promote more consistent and timely sharing of border 
     security-relevant information among jurisdictions along land 
     or maritime borders of the United States; and
       ``(C) enhance the Department's situational awareness of the 
     threat of acts of terrorism at or involving the land or 
     maritime borders of the United States.
       ``(f) Database Access.--In order to fulfill the objectives 
     described under subsection (d), each officer or intelligence 
     analyst assigned to a fusion center under this section shall 
     have appropriate access to all relevant Federal databases and 
     information systems, consistent with any policies, 
     guidelines, procedures, instructions, or standards 
     established by the President or, as appropriate, the program 
     manager of the information sharing environment for the 
     implementation and management of that environment.
       ``(g) Consumer Feedback.--
       ``(1) In general.--The Secretary shall create a voluntary 
     mechanism for any State, local, or tribal law enforcement 
     officer or other emergency response provider who is a 
     consumer of the intelligence or other information products 
     referred to in subsection (d) to provide feedback to the 
     Department on the quality and utility of such intelligence 
     products.
       ``(2) Report.--Not later than one year after the date of 
     the enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, and annually thereafter, the 
     Secretary shall submit to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report 
     that includes a description of the consumer feedback obtained 
     under paragraph (1) and, if applicable, how the Department 
     has adjusted its production of intelligence products in 
     response to that consumer feedback.
       ``(h) Rule of Construction.--
       ``(1) In general.--The authorities granted under this 
     section shall supplement the authorities granted under 
     section 201(d) and nothing in this section shall be construed 
     to abrogate the authorities granted under section 201(d).
       ``(2) Participation.--Nothing in this section shall be 
     construed to require a State, local, or regional government 
     or entity to accept the assignment of officers or 
     intelligence analysts of the Department into the fusion 
     center of that State, locality, or region.
       ``(i) Guidelines.--The Secretary, in consultation with the 
     Attorney General, shall establish guidelines for fusion 
     centers created and operated by State and local governments, 
     to include standards that any such fusion center shall--
       ``(1) collaboratively develop a mission statement, identify 
     expectations and goals, measure performance, and determine 
     effectiveness for that fusion center;
       ``(2) create a representative governance structure that 
     includes law enforcement officers and other emergency 
     response providers and, as appropriate, the private sector;
       ``(3) create a collaborative environment for the sharing of 
     intelligence and information among Federal, State, local, and 
     tribal government agencies (including law enforcement 
     officers and other emergency response providers), the private 
     sector, and the public, consistent with any policies, 
     guidelines, procedures, instructions, or standards 
     established by the President or, as appropriate, the program 
     manager of the information sharing environment;
       ``(4) leverage the databases, systems, and networks 
     available from public and private sector entities, in 
     accordance with all applicable laws, to maximize information 
     sharing;
       ``(5) develop, publish, and adhere to a privacy and civil 
     liberties policy consistent with Federal, State, and local 
     law;
       ``(6) provide, in coordination with the Privacy Officer of 
     the Department and the Officer for Civil Rights and Civil 
     Liberties of the Department, appropriate privacy and civil 
     liberties training for all State, local, tribal, and private 
     sector representatives at the fusion center;
       ``(7) ensure appropriate security measures are in place for 
     the facility, data, and personnel;
       ``(8) select and train personnel based on the needs, 
     mission, goals, and functions of that fusion center;
       ``(9) offer a variety of intelligence and information 
     services and products to recipients of fusion center 
     intelligence and information; and
       ``(10) incorporate law enforcement officers, other 
     emergency response providers, and, as appropriate, the 
     private sector, into all relevant phases of the intelligence 
     and fusion process, consistent with the mission statement 
     developed under paragraph (1), either through full time 
     representatives or liaison relationships with the fusion 
     center to enable the receipt and sharing of information and 
     intelligence.
       ``(j) Definitions.--In this section--
       ``(1) the term `fusion center' means a collaborative effort 
     of 2 or more Federal, State, local, or tribal government 
     agencies that combines resources, expertise, or information 
     with the goal of maximizing the ability of such agencies to 
     detect, prevent, investigate, apprehend, and respond to 
     criminal or terrorist activity;
       ``(2) the term `information sharing environment' means the 
     information sharing environment established under section 
     1016 of the Intelligence Reform and Terrorism Prevention Act 
     of 2004 (6 U.S.C. 485);
       ``(3) the term `intelligence analyst' means an individual 
     who regularly advises, administers, supervises, or performs 
     work in the collection, gathering, analysis, evaluation, 
     reporting, production, or dissemination of information on 
     political, economic, social, cultural, physical, 
     geographical, scientific, or military conditions, trends, or 
     forces in foreign or domestic areas that directly or 
     indirectly affect national security;
       ``(4) the term `intelligence-led policing' means the 
     collection and analysis of information to produce an 
     intelligence end product designed to inform law enforcement 
     decision making at the tactical and strategic levels; and
       ``(5) the term `terrorism information' has the meaning 
     given that term in section 1016 of the Intelligence Reform 
     and Terrorism Prevention Act of 2004 (6 U.S.C. 485).
       ``(k) Authorization of Appropriations.--There is authorized 
     to be appropriated $10,000,000 for each of fiscal years 2008 
     through 2012, to carry out this section, except for 
     subsection (i), including for hiring officers and 
     intelligence analysts to replace officers and intelligence 
     analysts who are assigned to fusion centers under this 
     section.''.
       (b) Training for Predeployed Officers and Analysts.--An 
     officer or analyst assigned to a fusion center by the 
     Secretary of Homeland Security before the date of the 
     enactment of this Act shall undergo the training described in 
     section 210A(c)(4)(A) of the Homeland Security Act of 2002, 
     as added by subsection (a), by not later than six months 
     after such date.
       (c) Technical and Conforming Amendment.--The table of 
     contents in section 1(b) of the Homeland Security Act of 2002 
     (6 U.S.C. 101 et seq.) is further amended by inserting after 
     the item relating to section 210 the following:

       ``Sec. 210A.Department of Homeland Security State, Local, 
           and Regional Information Fusion Center Initiative.''.

       (d) Reports.--
       (1) Concept of operations.--Not later than 90 days after 
     the date of enactment of this Act and before the Department 
     of Homeland Security State, Local, and Regional Fusion Center 
     Initiative under section 210A of the Homeland Security Act of 
     2002, as added by subsection (a), (in this section referred 
     to as the ``program'') has been implemented, the Secretary, 
     in consultation with the Privacy Officer of the Department, 
     the Officer for Civil Rights and Civil Liberties of the 
     Department, and the Privacy and Civil Liberties Oversight 
     Board established under section 1061 of the Intelligence 
     Reform and Terrorism Prevention Act of 2004 (5 U.S.C. 601 
     note), shall submit to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report 
     that contains a concept of operations for the program, which 
     shall--

[[Page 20659]]

       (A) include a clear articulation of the purposes, goals, 
     and specific objectives for which the program is being 
     developed;
       (B) identify stakeholders in the program and provide an 
     assessment of their needs;
       (C) contain a developed set of quantitative metrics to 
     measure, to the extent possible, program output;
       (D) contain a developed set of qualitative instruments 
     (including surveys and expert interviews) to assess the 
     extent to which stakeholders believe their needs are being 
     met; and
       (E) include a privacy and civil liberties impact 
     assessment.
       (2) Privacy and civil liberties.--Not later than 1 year 
     after the date of the enactment of this Act, the Privacy 
     Officer of the Department of Homeland Security and the 
     Officer for Civil Liberties and Civil Rights of the 
     Department of Homeland Security, consistent with any policies 
     of the Privacy and Civil Liberties Oversight Board 
     established under section 1061 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (5 U.S.C. 601 note), shall 
     submit to the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Homeland Security 
     of the House of Representatives, the Secretary of Homeland 
     Security, the Under Secretary of Homeland Security for 
     Intelligence and Analysis, and the Privacy and Civil 
     Liberties Oversight Board a report on the privacy and civil 
     liberties impact of the program.

     SEC. 512. HOMELAND SECURITY INFORMATION SHARING FELLOWS 
                   PROGRAM.

       (a) Establishment of Program.--Subtitle A of title II of 
     the Homeland Security Act of 2002 (6 U.S.C. 121 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 210B. HOMELAND SECURITY INFORMATION SHARING FELLOWS 
                   PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary, acting through the Under 
     Secretary for Intelligence and Analysis, and in consultation 
     with the Chief Human Capital Officer, shall establish a 
     fellowship program in accordance with this section for the 
     purpose of--
       ``(A) detailing State, local, and tribal law enforcement 
     officers and intelligence analysts to the Department in 
     accordance with subchapter VI of chapter 33 of title 5, 
     United States Code, to participate in the work of the Office 
     of Intelligence and Analysis in order to become familiar 
     with--
       ``(i) the relevant missions and capabilities of the 
     Department and other Federal agencies; and
       ``(ii) the role, programs, products, and personnel of the 
     Office of Intelligence and Analysis; and
       ``(B) promoting information sharing between the Department 
     and State, local, and tribal law enforcement officers and 
     intelligence analysts by assigning such officers and analysts 
     to--
       ``(i) serve as a point of contact in the Department to 
     assist in the representation of State, local, and tribal 
     information requirements;
       ``(ii) identify information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information, that is of interest to State, local, 
     and tribal law enforcement officers, intelligence analysts, 
     and other emergency response providers;
       ``(iii) assist Department analysts in preparing and 
     disseminating products derived from information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, that are tailored to 
     State, local, and tribal law enforcement officers and 
     intelligence analysts and designed to prepare for and thwart 
     acts of terrorism; and
       ``(iv) assist Department analysts in preparing products 
     derived from information within the scope of the information 
     sharing environment, including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information, that are tailored to State, local, and tribal 
     emergency response providers and assist in the dissemination 
     of such products through appropriate Department channels.
       ``(2) Program name.--The program under this section shall 
     be known as the `Homeland Security Information Sharing 
     Fellows Program'.
       ``(b) Eligibility.--
       ``(1) In general.--In order to be eligible for selection as 
     an Information Sharing Fellow under the program under this 
     section, an individual shall--
       ``(A) have homeland security-related responsibilities;
       ``(B) be eligible for an appropriate security clearance;
       ``(C) possess a valid need for access to classified 
     information, as determined by the Under Secretary for 
     Intelligence and Analysis;
       ``(D) be an employee of an eligible entity; and
       ``(E) have undergone appropriate privacy and civil 
     liberties training that is developed, supported, or sponsored 
     by the Privacy Officer and the Officer for Civil Rights and 
     Civil Liberties, in consultation with the Privacy and Civil 
     Liberties Oversight Board established under section 1061 of 
     the Intelligence Reform and Terrorism Prevention Act of 2004 
     (5 U.S.C. 601 note).
       ``(2) Eligible entities.--In this subsection, the term 
     `eligible entity' means--
       ``(A) a State, local, or regional fusion center;
       ``(B) a State or local law enforcement or other government 
     entity that serves a major metropolitan area, suburban area, 
     or rural area, as determined by the Secretary;
       ``(C) a State or local law enforcement or other government 
     entity with port, border, or agricultural responsibilities, 
     as determined by the Secretary;
       ``(D) a tribal law enforcement or other authority; or
       ``(E) such other entity as the Secretary determines is 
     appropriate.
       ``(c) Optional Participation.--No State, local, or tribal 
     law enforcement or other government entity shall be required 
     to participate in the Homeland Security Information Sharing 
     Fellows Program.
       ``(d) Procedures for Nomination and Selection.--
       ``(1) In general.--The Under Secretary for Intelligence and 
     Analysis shall establish procedures to provide for the 
     nomination and selection of individuals to participate in the 
     Homeland Security Information Sharing Fellows Program.
       ``(2) Limitations.--The Under Secretary for Intelligence 
     and Analysis shall--
       ``(A) select law enforcement officers and intelligence 
     analysts representing a broad cross-section of State, local, 
     and tribal agencies; and
       ``(B) ensure that the number of Information Sharing Fellows 
     selected does not impede the activities of the Office of 
     Intelligence and Analysis.''.
       (b) Technical and Conforming Amendment.--The table of 
     contents in section 1(b) of the Homeland Security Act of 2002 
     (6 U.S.C. 101 et seq.) is further amended by inserting after 
     the item relating to section 210A the following:

       ``Sec. 210B. Homeland Security Information Sharing Fellows 
           Program.''.

       (c) Reports.--
       (1) Concept of operations.--Not later than 90 days after 
     the date of enactment of this Act, and before the 
     implementation of the Homeland Security Information Sharing 
     Fellows Program under section 210B of the Homeland Security 
     Act of 2002, as added by subsection (a), (in this section 
     referred to as the ``Program'') the Secretary, in 
     consultation with the Privacy Officer of the Department, the 
     Officer for Civil Rights and Civil Liberties of the 
     Department, and the Privacy and Civil Liberties Oversight 
     Board established under section 1061 of the Intelligence 
     Reform and Terrorism Prevention Act of 2004 (5 U.S.C. 601 
     note), shall submit to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report 
     that contains a concept of operations for the Program, which 
     shall include a privacy and civil liberties impact 
     assessment.
       (2) Review of privacy impact.--Not later than 1 year after 
     the date on which the program is implemented, the Privacy 
     Officer of the Department and the Officer for Civil Rights 
     and Civil Liberties of the Department, consistent with any 
     policies of the Privacy and Civil Liberties Oversight Board 
     established under section 1061 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (5 U.S.C. 601 note), shall 
     submit to the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Homeland Security 
     of the House of Representatives, the Secretary of Homeland 
     Security, the Under Secretary of Homeland Security for 
     Intelligence and Analysis, and the Privacy and Civil 
     Liberties Oversight Board, a report on the privacy and civil 
     liberties impact of the program.

     SEC. 513. RURAL POLICING INSTITUTE.

       (a) Establishment.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.) is further 
     amended by adding at the end the following:

     ``SEC. 210C. RURAL POLICING INSTITUTE.

       ``(a) In General.--The Secretary shall establish a Rural 
     Policing Institute, which shall be administered by the 
     Federal Law Enforcement Training Center, to target training 
     to law enforcement agencies and other emergency response 
     providers located in rural areas. The Secretary, through the 
     Rural Policing Institute, shall--
       ``(1) evaluate the needs of law enforcement agencies and 
     other emergency response providers in rural areas;
       ``(2) develop expert training programs designed to address 
     the needs of law enforcement agencies and other emergency 
     response providers in rural areas as identified in the 
     evaluation conducted under paragraph (1), including training 
     programs about intelligence-led policing and protections for 
     privacy, civil rights, and civil liberties;
       ``(3) provide the training programs developed under 
     paragraph (2) to law enforcement agencies and other emergency 
     response providers in rural areas; and
       ``(4) conduct outreach efforts to ensure that local and 
     tribal governments in rural areas are aware of the training 
     programs developed under paragraph (2) so they can avail 
     themselves of such programs.
       ``(b) Curricula.--The training at the Rural Policing 
     Institute established under subsection (a) shall--
       ``(1) be configured in a manner so as not to duplicate or 
     displace any law enforcement or emergency response program of 
     the Federal Law Enforcement Training Center or a local or 
     tribal government entity in existence on the date of 
     enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007; and
       ``(2) to the maximum extent practicable, be delivered in a 
     cost-effective manner at facilities of the Department, on 
     closed military installations with adequate training 
     facilities, or at facilities operated by the participants.
       ``(c) Definition.--In this section, the term `rural' means 
     an area that is not located in a metropolitan statistical 
     area, as defined by the Office of Management and Budget.

[[Page 20660]]

       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     (including for contracts, staff, and equipment)--
       ``(1) $10,000,000 for fiscal year 2008; and
       ``(2) $5,000,000 for each of fiscal years 2009 through 
     2013.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is further amended by inserting after the 
     item relating to section 210B the following:

``Sec. 210C. Rural Policing Institute.''.

    Subtitle C--Interagency Threat Assessment and Coordination Group

     SEC. 521. INTERAGENCY THREAT ASSESSMENT AND COORDINATION 
                   GROUP.

       (a) Establishment.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.) is further 
     amended by adding at the end the following:

     ``SEC. 210D. INTERAGENCY THREAT ASSESSMENT AND COORDINATION 
                   GROUP.

       ``(a) In General.--To improve the sharing of information 
     within the scope of the information sharing environment 
     established under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485) with State, 
     local, tribal, and private sector officials, the Director of 
     National Intelligence, through the program manager for the 
     information sharing environment, in coordination with the 
     Secretary, shall coordinate and oversee the creation of an 
     Interagency Threat Assessment and Coordination Group 
     (referred to in this section as the `ITACG').
       ``(b) Composition of ITACG.--The ITACG shall consist of--
       ``(1) an ITACG Advisory Council to set policy and develop 
     processes for the integration, analysis, and dissemination of 
     federally-coordinated information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information; and
       ``(2) an ITACG Detail comprised of State, local, and tribal 
     homeland security and law enforcement officers and 
     intelligence analysts detailed to work in the National 
     Counterterrorism Center with Federal intelligence analysts 
     for the purpose of integrating, analyzing, and assisting in 
     the dissemination of federally-coordinated information within 
     the scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, through appropriate 
     channels identified by the ITACG Advisory Council.
       ``(c) Responsibilities of Program Manager.--The program 
     manager, in consultation with the Information Sharing 
     Council, shall--
       ``(1) monitor and assess the efficacy of the ITACG; and
       ``(2) not later than 180 days after the date of the 
     enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, and at least annually thereafter, 
     submit to the Secretary, the Attorney General, the Director 
     of National Intelligence, the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report on 
     the progress of the ITACG.
       ``(d) Responsibilities of Secretary.--The Secretary, or the 
     Secretary's designee, in coordination with the Director of 
     the National Counterterrorism Center and the ITACG Advisory 
     Council, shall--
       ``(1) create policies and standards for the creation of 
     information products derived from information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, that are suitable 
     for dissemination to State, local, and tribal governments and 
     the private sector;
       ``(2) evaluate and develop processes for the timely 
     dissemination of federally-coordinated information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, to State, local, and 
     tribal governments and the private sector;
       ``(3) establish criteria and a methodology for indicating 
     to State, local, and tribal governments and the private 
     sector the reliability of information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information, disseminated to them;
       ``(4) educate the intelligence community about the 
     requirements of the State, local, and tribal homeland 
     security, law enforcement, and other emergency response 
     providers regarding information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information;
       ``(5) establish and maintain the ITACG Detail, which shall 
     assign an appropriate number of State, local, and tribal 
     homeland security and law enforcement officers and 
     intelligence analysts to work in the National 
     Counterterrorism Center who shall--
       ``(A) educate and advise National Counterterrorism Center 
     intelligence analysts about the requirements of the State, 
     local, and tribal homeland security and law enforcement 
     officers, and other emergency response providers regarding 
     information within the scope of the information sharing 
     environment, including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information;
       ``(B) assist National Counterterrorism Center intelligence 
     analysts in integrating, analyzing, and otherwise preparing 
     versions of products derived from information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information that are unclassified 
     or classified at the lowest possible level and suitable for 
     dissemination to State, local, and tribal homeland security 
     and law enforcement agencies in order to help deter and 
     prevent terrorist attacks;
       ``(C) implement, in coordination with National 
     Counterterrorism Center intelligence analysts, the policies, 
     processes, procedures, standards, and guidelines developed by 
     the ITACG Advisory Council;
       ``(D) assist in the dissemination of products derived from 
     information within the scope of the information sharing 
     environment, including homeland security information, 
     terrorism information, and weapons of mass destruction 
     information, to State, local, and tribal jurisdictions only 
     through appropriate channels identified by the ITACG Advisory 
     Council; and
       ``(E) report directly to the senior intelligence official 
     from the Department under paragraph (6);
       ``(6) detail a senior intelligence official from the 
     Department of Homeland Security to the National 
     Counterterrorism Center, who shall--
       ``(A) manage the day-to-day operations of the ITACG Detail;
       ``(B) report directly to the Director of the National 
     Counterterrorism Center or the Director's designee; and
       ``(C) in coordination with the Director of the Federal 
     Bureau of Investigation, and subject to the approval of the 
     Director of the National Counterterrorism Center, select a 
     deputy from the pool of available detailees from the Federal 
     Bureau of Investigation in the National Counterterrorism 
     Center; and
       ``(7) establish, within the ITACG Advisory Council, a 
     mechanism to select law enforcement officers and intelligence 
     analysts for placement in the National Counterterrorism 
     Center consistent with paragraph (5), using criteria 
     developed by the ITACG Advisory Council that shall encourage 
     participation from a broadly representative group of State, 
     local, and tribal homeland security and law enforcement 
     agencies.
       ``(e) Membership.--The Secretary, or the Secretary's 
     designee, shall serve as the chair of the ITACG Advisory 
     Council, which shall include--
       ``(1) representatives of--
       ``(A) the Department;
       ``(B) the Federal Bureau of Investigation;
       ``(C) the National Counterterrorism Center;
       ``(D) the Department of Defense;
       ``(E) the Department of Energy;
       ``(F) the Department of State; and
       ``(G) other Federal entities as appropriate;
       ``(2) the program manager of the information sharing 
     environment, designated under section 1016(f) of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 (6 
     U.S.C. 485(f)), or the program manager's designee; and
       ``(3) executive level law enforcement and intelligence 
     officials from State, local, and tribal governments.
       ``(f) Criteria.--The Secretary, in consultation with the 
     Director of National Intelligence, the Attorney General, and 
     the program manager of the information sharing environment 
     established under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485), shall--
       ``(1) establish procedures for selecting members of the 
     ITACG Advisory Council and for the proper handling and 
     safeguarding of products derived from information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, by those members; 
     and
       ``(2) ensure that at least 50 percent of the members of the 
     ITACG Advisory Council are from State, local, and tribal 
     governments.
       ``(g) Operations.--
       ``(1) In general.--Beginning not later than 90 days after 
     the date of enactment of the Implementing Recommendations of 
     the 9/11 Commission Act of 2007, the ITACG Advisory Council 
     shall meet regularly, but not less than quarterly, at the 
     facilities of the National Counterterrorism Center of the 
     Office of the Director of National Intelligence.
       ``(2) Management.--Pursuant to section 119(f)(E) of the 
     National Security Act of 1947 (50 U.S.C. 404o(f)(E)), the 
     Director of the National Counterterrorism Center, acting 
     through the senior intelligence official from the Department 
     of Homeland Security detailed pursuant to subsection (d)(6), 
     shall ensure that--
       ``(A) the products derived from information within the 
     scope of the information sharing environment, including 
     homeland security information, terrorism information, and 
     weapons of mass destruction information, prepared by the 
     National Counterterrorism Center and the ITACG Detail for 
     distribution to State, local, and tribal homeland security 
     and law enforcement agencies reflect the requirements of such 
     agencies and are produced consistently with the policies, 
     processes, procedures, standards, and guidelines established 
     by the ITACG Advisory Council;
       ``(B) in consultation with the ITACG Advisory Council and 
     consistent with sections 102A(f)(1)(B)(iii) and 119(f)(E) of 
     the National Security Act of 1947 (50 U.S.C. 402 et seq.), 
     all products described in subparagraph (A) are disseminated 
     through existing channels of the Department and the 
     Department of Justice and other appropriate channels to 
     State, local, and tribal government officials and other 
     entities;
       ``(C) all detailees under subsection (d)(5) have 
     appropriate access to all relevant information

[[Page 20661]]

     within the scope of the information sharing environment, 
     including homeland security information, terrorism 
     information, and weapons of mass destruction information, 
     available at the National Counterterrorism Center in order to 
     accomplish the objectives under that paragraph;
       ``(D) all detailees under subsection (d)(5) have the 
     appropriate security clearances and are trained in the 
     procedures for handling, processing, storing, and 
     disseminating classified products derived from information 
     within the scope of the information sharing environment, 
     including homeland security information, terrorism 
     information, and weapons of mass destruction information; and
       ``(E) all detailees under subsection (d)(5) complete 
     appropriate privacy and civil liberties training.
       ``(h) Inapplicability of the Federal Advisory Committee 
     Act.--The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to the ITACG or any subsidiary groups 
     thereof.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     for each of fiscal years 2008 through 2012 to carry out this 
     section, including to obtain security clearances for the 
     State, local, and tribal participants in the ITACG.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by inserting after the item 
     relating to section 210C the following:

``Sec. 210D. Interagency Threat Assessment and Coordination Group.''.
       (c) Privacy and Civil Liberties Impact Assessment.--Not 
     later than 90 days after the date of the enactment of this 
     Act, the Privacy Officer and the Officer for Civil Rights and 
     Civil Liberties of the Department of Homeland Security and 
     the Chief Privacy and Civil Liberties Officer for the 
     Department of Justice, in consultation with the Civil 
     Liberties Protection Officer of the Office of the Director of 
     National Intelligence, shall submit to the Secretary of 
     Homeland Security, the Director of the Federal Bureau of 
     Investigation, the Attorney General, the Director of the 
     National Counterterrorism Center, the Director of National 
     Intelligence, the Privacy and Civil Liberties Oversight 
     Board, and the Committee on Homeland Security and 
     Governmental Affairs of the Senate, the Committee on Homeland 
     Security of the House of Representatives, the Select 
     Committee on Intelligence of the Senate, and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives, a privacy and civil liberties impact 
     assessment of the Interagency Threat Assessment and 
     Coordination Group under section 210D of the Homeland 
     Security Act of 2002, as added by subsection (a), including 
     the use of State, local, and tribal detailees at the National 
     Counterterrorism Center, as described in subsection (d)(5) of 
     that section.

   Subtitle D--Homeland Security Intelligence Offices Reorganization

     SEC. 531. OFFICE OF INTELLIGENCE AND ANALYSIS AND OFFICE OF 
                   INFRASTRUCTURE PROTECTION.

       (a) In General.--Section 201 of the Homeland Security Act 
     of 2002 (6 U.S.C. 201) is amended--
       (1) in the section heading, by striking ``directorate 
     for information'' and inserting 
     ``information and'';
       (2) by striking subsections (a) through (c) and inserting 
     the following:
       ``(a) Intelligence and Analysis and Infrastructure 
     Protection.--There shall be in the Department an Office of 
     Intelligence and Analysis and an Office of Infrastructure 
     Protection.
       ``(b) Under Secretary for Intelligence and Analysis and 
     Assistant Secretary for Infrastructure Protection.--
       ``(1) Office of intelligence and analysis.--The Office of 
     Intelligence and Analysis shall be headed by an Under 
     Secretary for Intelligence and Analysis, who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) Chief intelligence officer.--The Under Secretary for 
     Intelligence and Analysis shall serve as the Chief 
     Intelligence Officer of the Department.
       ``(3) Office of infrastructure protection.--The Office of 
     Infrastructure Protection shall be headed by an Assistant 
     Secretary for Infrastructure Protection, who shall be 
     appointed by the President.
       ``(c) Discharge of Responsibilities.--The Secretary shall 
     ensure that the responsibilities of the Department relating 
     to information analysis and infrastructure protection, 
     including those described in subsection (d), are carried out 
     through the Under Secretary for Intelligence and Analysis or 
     the Assistant Secretary for Infrastructure Protection, as 
     appropriate.'';
       (3) in subsection (d)--
       (A) in the subsection heading, by striking ``Under 
     Secretary'' and inserting ``Secretary Relating To 
     Intelligence and Analysis and Infrastructure Protection'';
       (B) in the matter preceding paragraph (1), by striking 
     ``Subject to the direction'' and all that follows through 
     ``Infrastructure Protection'' and inserting the following: 
     ``The responsibilities of the Secretary relating to 
     intelligence and analysis and infrastructure protection'';
       (C) in paragraph (9), as redesignated under section 
     510(a)(2)(A)(ii), by striking ``Director of Central 
     Intelligence'' and inserting ``Director of National 
     Intelligence'';
       (D) in paragraph (11)(B), as so redesignated, by striking 
     ``Director of Central Intelligence'' and inserting ``Director 
     of National Intelligence'';
       (E) by redesignating paragraph (18), as so redesignated, as 
     paragraph (24); and
       (F) by inserting after paragraph (17), as so redesignated, 
     the following:
       ``(18) To coordinate and enhance integration among the 
     intelligence components of the Department, including through 
     strategic oversight of the intelligence activities of such 
     components.
       ``(19) To establish the intelligence collection, 
     processing, analysis, and dissemination priorities, policies, 
     processes, standards, guidelines, and procedures for the 
     intelligence components of the Department, consistent with 
     any directions from the President and, as applicable, the 
     Director of National Intelligence.
       ``(20) To establish a structure and process to support the 
     missions and goals of the intelligence components of the 
     Department.
       ``(21) To ensure that, whenever possible, the Department--
       ``(A) produces and disseminates unclassified reports and 
     analytic products based on open-source information; and
       ``(B) produces and disseminates such reports and analytic 
     products contemporaneously with reports or analytic products 
     concerning the same or similar information that the 
     Department produced and disseminated in a classified format.
       ``(22) To establish within the Office of Intelligence and 
     Analysis an internal continuity of operations plan.
       ``(23) Based on intelligence priorities set by the 
     President, and guidance from the Secretary and, as 
     appropriate, the Director of National Intelligence--
       ``(A) to provide to the heads of each intelligence 
     component of the Department guidance for developing the 
     budget pertaining to the activities of such component; and
       ``(B) to present to the Secretary a recommendation for a 
     consolidated budget for the intelligence components of the 
     Department, together with any comments from the heads of such 
     components.'';
       (4) in subsection (e)(1)--
       (A) by striking ``Directorate'' the first place that term 
     appears and inserting ``Office of Intelligence and Analysis 
     and the Office of Infrastructure Protection''; and
       (B) by striking ``the Directorate in discharging'' and 
     inserting ``such offices in discharging'';
       (5) in subsection (f)(1), by striking ``Directorate'' and 
     inserting ``Office of Intelligence and Analysis and the 
     Office of Infrastructure Protection''; and
       (6) In subsection (g), in the matter preceding paragraph 
     (1), by striking ``Under Secretary for Information Analysis 
     and Infrastructure Protection'' and inserting ``Office of 
     Intelligence and Analysis and the Office of Infrastructure 
     Protection''.
       (b) Technical and Conforming Amendments.--
       (1) In general.--Such Act is further amended--
       (A) in section 223, by striking ``Under Secretary for 
     Information Analysis and Infrastructure Protection'' and 
     inserting ``Under Secretary for Intelligence and Analysis, in 
     cooperation with the Assistant Secretary for Infrastructure 
     Protection'';
       (B) in section 224, by striking ``Under Secretary for 
     Information Analysis and Infrastructure Protection'' and 
     inserting ``Assistant Secretary for Infrastructure 
     Protection'';
       (C) in section 302(3), by striking ``Under Secretary for 
     Information Analysis and Infrastructure Protection'' and 
     inserting ``Under Secretary for Intelligence and Analysis and 
     the Assistant Secretary for Infrastructure Protection''; and
       (D) in section 521(d)--
       (i) in paragraph (1), by striking ``Directorate for 
     Information Analysis and Infrastructure Protection'' and 
     inserting ``Office of Intelligence and Analysis''; and
       (ii) in paragraph (2), by striking ``Under Secretary for 
     Information Analysis and Infrastructure Protection'' and 
     inserting ``Under Secretary for Intelligence and Analysis''.
       (2) Additional under secretary.--Section 103(a) of the 
     Homeland Security Act of 2002 (6 U.S.C. 113(a)) is amended--
       (A) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (10), respectively; and
       (B) by inserting after paragraph (7) the following:
       ``(8) An Under Secretary responsible for overseeing 
     critical infrastructure protection, cybersecurity, and other 
     related programs of the Department.''.
       (3) Heading.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 121 et seq.) is amended in the 
     subtitle heading by striking ``Directorate for Information'' 
     and inserting ``Information and''.
       (4) Table of contents.--The Homeland Security Act of 2002 
     (6 U.S.C. 101 et seq.) is amended in the table of contents in 
     section 1(b)--
       (A) by striking the items relating to subtitle A of title 
     II and section 201 and inserting the following:

 ``Subtitle A--Information and Analysis and Infrastructure Protection; 
                         Access to Information

``Sec. 201. Information and Analysis and Infrastructure Protection.''; 
              and
       (5) National security act of 1947.--Section 106(b)(2)(I) of 
     the National Security Act of 1947 (50 U.S.C. 403-6) is 
     amended to read as follows:
       ``(I) The Under Secretary of Homeland Security for 
     Intelligence and Analysis.''.
       (c) Treatment of Incumbent.--The individual 
     administratively performing the duties of the Under Secretary 
     for Intelligence and Analysis as of the date of the enactment

[[Page 20662]]

     of this Act may continue to perform such duties after the 
     date on which the President nominates an individual to serve 
     as the Under Secretary pursuant to section 201 of the 
     Homeland Security Act of 2002, as amended by this section, 
     and until the individual so appointed assumes the duties of 
     the position

              Subtitle E--Authorization of Appropriations

     SEC. 541. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for each of fiscal 
     years 2008 through 2012 such sums as may be necessary to 
     carry out this title and the amendments made by this title.

           TITLE VI--CONGRESSIONAL OVERSIGHT OF INTELLIGENCE

     SEC. 601. AVAILABILITY TO PUBLIC OF CERTAIN INTELLIGENCE 
                   FUNDING INFORMATION.

       (a) Amounts Appropriated Each Fiscal Year.--Not later than 
     30 days after the end of each fiscal year beginning with 
     fiscal year 2007, the Director of National Intelligence shall 
     disclose to the public the aggregate amount of funds 
     appropriated by Congress for the National Intelligence 
     Program for such fiscal year.
       (b) Waiver.--Beginning with fiscal year 2009, the President 
     may waive or postpone the disclosure required by subsection 
     (a) for any fiscal year by, not later than 30 days after the 
     end of such fiscal year, submitting to the Select Committee 
     on Intelligence of the Senate and Permanent Select Committee 
     on Intelligence of the House of Representatives--
       (1) a statement, in unclassified form, that the disclosure 
     required in subsection (a) for that fiscal year would damage 
     national security; and
       (2) a statement detailing the reasons for the waiver or 
     postponement, which may be submitted in classified form.
       (c) Definition.--As used in this section, the term 
     ``National Intelligence Program'' has the meaning given the 
     term in section 3(6) of the National Security Act of 1947 (50 
     U.S.C. 401a(6)).

     SEC. 602. PUBLIC INTEREST DECLASSIFICATION BOARD.

       The Public Interest Declassification Act of 2000 (50 U.S.C. 
     435 note) is amended--
       (1) by striking ``Director of Central Intelligence'' each 
     place that term appears and inserting ``Director of National 
     Intelligence'';
       (2) in section 704(e)--
       (A) by striking ``If requested'' and inserting the 
     following:
       ``(1) In general.--If requested''; and
       (B) by adding at the end the following:
       ``(2) Authority of board.--Upon receiving a congressional 
     request described in section 703(b)(5), the Board may conduct 
     the review and make the recommendations described in that 
     section, regardless of whether such a review is requested by 
     the President.
       ``(3) Reporting.--Any recommendations submitted to the 
     President by the Board under section 703(b)(5), shall be 
     submitted to the chairman and ranking minority member of the 
     committee of Congress that made the request relating to such 
     recommendations.'';
       (3) in section 705(c), in the subsection heading, by 
     striking ``Director of Central Intelligence'' and inserting 
     ``Director of National Intelligence''; and
       (4) in section 710(b), by striking ``8 years after the 
     date'' and all that follows and inserting ``on December 31, 
     2012.''.

     SEC. 603. SENSE OF THE SENATE REGARDING A REPORT ON THE 9/11 
                   COMMISSION RECOMMENDATIONS WITH RESPECT TO 
                   INTELLIGENCE REFORM AND CONGRESSIONAL 
                   INTELLIGENCE OVERSIGHT REFORM.

       (a) Findings.--Congress makes the following findings:
       (1) The National Commission on Terrorist Attacks Upon the 
     United States (referred to in this section as the ``9/11 
     Commission'') conducted a lengthy review of the facts and 
     circumstances relating to the terrorist attacks of September 
     11, 2001, including those relating to the intelligence 
     community, law enforcement agencies, and the role of 
     congressional oversight and resource allocation.
       (2) In its final report, the 9/11 Commission found that--
       (A) congressional oversight of the intelligence activities 
     of the United States is dysfunctional;
       (B) under the rules of the Senate and the House of 
     Representatives in effect at the time the report was 
     completed, the committees of Congress charged with oversight 
     of the intelligence activities lacked the power, influence, 
     and sustained capability to meet the daunting challenges 
     faced by the intelligence community of the United States;
       (C) as long as such oversight is governed by such rules of 
     the Senate and the House of Representatives, the people of 
     the United States will not get the security they want and 
     need;
       (D) a strong, stable, and capable congressional committee 
     structure is needed to give the intelligence community of the 
     United States appropriate oversight, support, and leadership; 
     and
       (E) the reforms recommended by the 9/11 Commission in its 
     final report will not succeed if congressional oversight of 
     the intelligence community in the United States is not 
     changed.
       (3) The 9/11 Commission recommended structural changes to 
     Congress to improve the oversight of intelligence activities.
       (4) Congress has enacted some of the recommendations made 
     by the 9/11 Commission and is considering implementing 
     additional recommendations of the 9/11 Commission.
       (5) The Senate adopted Senate Resolution 445 in the 108th 
     Congress to address some of the intelligence oversight 
     recommendations of the 9/11 Commission by abolishing term 
     limits for the members of the Select Committee on 
     Intelligence, clarifying jurisdiction for intelligence-
     related nominations, and streamlining procedures for the 
     referral of intelligence-related legislation, but other 
     aspects of the 9/11 Commission recommendations regarding 
     intelligence oversight have not been implemented.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Committee on Homeland Security and Governmental 
     Affairs and the Select Committee on Intelligence of the 
     Senate each, or jointly, should--
       (1) undertake a review of the recommendations made in the 
     final report of the 9/11 Commission with respect to 
     intelligence reform and congressional intelligence oversight 
     reform;
       (2) review and consider any other suggestions, options, or 
     recommendations for improving intelligence oversight; and
       (3) not later than December 21, 2007, submit to the Senate 
     a report that includes the recommendations of the committees, 
     if any, for carrying out such reforms.

     SEC. 604. AVAILABILITY OF FUNDS FOR THE PUBLIC INTEREST 
                   DECLASSIFICATION BOARD.

       Section 21067 of the Continuing Appropriations Resolution, 
     2007 (division B of Public Law 109-289; 120 Stat. 1311), as 
     amended by Public Law 109-369 (120 Stat. 2642), Public Law 
     109-383 (120 Stat. 2678), and Public Law 110-5, is amended by 
     adding at the end the following new subsection:
       ``(c) From the amount provided by this section, the 
     National Archives and Records Administration may obligate 
     monies necessary to carry out the activities of the Public 
     Interest Declassification Board.''.

     SEC. 605. AVAILABILITY OF THE EXECUTIVE SUMMARY OF THE REPORT 
                   ON CENTRAL INTELLIGENCE AGENCY ACCOUNTABILITY 
                   REGARDING THE TERRORIST ATTACKS OF SEPTEMBER 
                   11, 2001.

       (a) Public Availability.--Not later than 30 days after the 
     date of the enactment of this Act, the Director of the 
     Central Intelligence Agency shall prepare and make available 
     to the public a version of the Executive Summary of the 
     report entitled the ``Office of Inspector General Report on 
     Central Intelligence Agency Accountability Regarding Findings 
     and Conclusions of the Joint Inquiry into Intelligence 
     Community Activities Before and After the Terrorist Attacks 
     of September 11, 2001'' issued in June 2005 that is 
     declassified to the maximum extent possible, consistent with 
     national security.
       (b) Report to Congress.--The Director of the Central 
     Intelligence Agency shall submit to Congress a classified 
     annex to the redacted Executive Summary made available under 
     subsection (a) that explains the reason that any redacted 
     material in the Executive Summary was withheld from the 
     public.

      TITLE VII--STRENGTHENING EFFORTS TO PREVENT TERRORIST TRAVEL

                      Subtitle A--Terrorist Travel

     SEC. 701. REPORT ON INTERNATIONAL COLLABORATION TO INCREASE 
                   BORDER SECURITY, ENHANCE GLOBAL DOCUMENT 
                   SECURITY, AND EXCHANGE TERRORIST INFORMATION.

       (a) Report Required.--Not later than 270 days after the 
     date of the enactment of this Act, the Secretary of State and 
     the Secretary of Homeland Security, in conjunction with the 
     Director of National Intelligence and the heads of other 
     appropriate Federal departments and agencies, shall submit to 
     the appropriate congressional committees a report on efforts 
     of the Government of the United States to collaborate with 
     international partners and allies of the United States to 
     increase border security, enhance global document security, 
     and exchange terrorism information.
       (b) Contents.--The report required by subsection (a) shall 
     outline--
       (1) all presidential directives, programs, and strategies 
     for carrying out and increasing United States Government 
     efforts described in subsection (a);
       (2) the goals and objectives of each of these efforts;
       (3) the progress made in each of these efforts; and
       (4) the projected timelines for each of these efforts to 
     become fully functional and effective.
       (c) Definition.--In this section, the term ``appropriate 
     congressional committees'' means--
       (1) the Committee on Foreign Affairs, the Committee on 
     Homeland Security, the Committee on the Judiciary, and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives; and
       (2) the Committee on Foreign Relations, the Committee on 
     Homeland Security and Governmental Affairs, the Committee on 
     the

[[Page 20663]]

     Judiciary, and the Select Committee on Intelligence of the 
     Senate.

                        Subtitle B--Visa Waiver

     SEC. 711. MODERNIZATION OF THE VISA WAIVER PROGRAM.

       (a) Short Title.--This section may be cited as the ``Secure 
     Travel and Counterterrorism Partnership Act of 2007''.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States should modernize and strengthen the 
     security of the visa waiver program under section 217 of the 
     Immigration and Nationality Act (8 U.S.C. 1187) by 
     simultaneously--
       (A) enhancing program security requirements; and
       (B) extending visa-free travel privileges to nationals of 
     foreign countries that are partners in the war on terrorism--
       (i) that are actively cooperating with the United States to 
     prevent terrorist travel, including sharing counterterrorism 
     and law enforcement information; and
       (ii) whose nationals have demonstrated their compliance 
     with the provisions of the Immigration and Nationality Act 
     regarding the purpose and duration of their admission to the 
     United States; and
       (2) the modernization described in paragraph (1) will--
       (A) enhance bilateral cooperation on critical 
     counterterrorism and information sharing initiatives;
       (B) support and expand tourism and business opportunities 
     to enhance long-term economic competitiveness; and
       (C) strengthen bilateral relationships.
       (c) Discretionary Visa Waiver Program Expansion.--Section 
     217(c) of the Immigration and Nationality Act (8 U.S.C. 
     1187(c)) is amended by adding at the end the following new 
     paragraphs:
       ``(8) Nonimmigrant visa refusal rate flexibility.--
       ``(A) Certification.--
       ``(i) In general.--On the date on which an air exit system 
     is in place that can verify the departure of not less than 97 
     percent of foreign nationals who exit through airports of the 
     United States and the electronic travel authorization system 
     required under subsection (h)(3) is fully operational, the 
     Secretary of Homeland Security shall certify to Congress that 
     such air exit system and electronic travel authorization 
     system are in place.
       ``(ii) Notification to congress.--The Secretary shall 
     notify Congress in writing of the date on which the air exit 
     system under clause (i) fully satisfies the biometric 
     requirements specified in subsection (i).
       ``(iii) Temporary suspension of waiver authority.--
     Notwithstanding any certification made under clause (i), if 
     the Secretary has not notified Congress in accordance with 
     clause (ii) by June 30, 2009, the Secretary's waiver 
     authority under subparagraph (B) shall be suspended beginning 
     on July 1, 2009, until such time as the Secretary makes such 
     notification.
       ``(iv) Rule of construction.--Nothing in this paragraph 
     shall be construed as in any way abrogating the reporting 
     requirements under subsection (i)(3).
       ``(B) Waiver.--After certification by the Secretary under 
     subparagraph (A), the Secretary, in consultation with the 
     Secretary of State, may waive the application of paragraph 
     (2)(A) for a country if--
       ``(i) the country meets all security requirements of this 
     section;
       ``(ii) the Secretary of Homeland Security determines that 
     the totality of the country's security risk mitigation 
     measures provide assurance that the country's participation 
     in the program would not compromise the law enforcement, 
     security interests, or enforcement of the immigration laws of 
     the United States;
       ``(iii) there has been a sustained reduction in the rate of 
     refusals for nonimmigrant visas for nationals of the country 
     and conditions exist to continue such reduction;
       ``(iv) the country cooperated with the Government of the 
     United States on counterterrorism initiatives, information 
     sharing, and preventing terrorist travel before the date of 
     its designation as a program country, and the Secretary of 
     Homeland Security and the Secretary of State determine that 
     such cooperation will continue; and
       ``(v)(I) the rate of refusals for nonimmigrant visitor 
     visas for nationals of the country during the previous full 
     fiscal year was not more than ten percent; or
       ``(II) the visa overstay rate for the country for the 
     previous full fiscal year does not exceed the maximum visa 
     overstay rate, once such rate is established under 
     subparagraph (C).
       ``(C) Maximum visa overstay rate.--
       ``(i) Requirement to establish.--After certification by the 
     Secretary under subparagraph (A), the Secretary and the 
     Secretary of State jointly shall use information from the air 
     exit system referred to in such subparagraph to establish a 
     maximum visa overstay rate for countries participating in the 
     program pursuant to a waiver under subparagraph (B). The 
     Secretary of Homeland Security shall certify to Congress that 
     such rate would not compromise the law enforcement, security 
     interests, or enforcement of the immigration laws of the 
     United States.
       ``(ii) Visa overstay rate defined.--In this paragraph the 
     term `visa overstay rate' means, with respect to a country, 
     the ratio of--

       ``(I) the total number of nationals of that country who 
     were admitted to the United States on the basis of a 
     nonimmigrant visa whose periods of authorized stays ended 
     during a fiscal year but who remained unlawfully in the 
     United States beyond such periods; to
       ``(II) the total number of nationals of that country who 
     were admitted to the United States on the basis of a 
     nonimmigrant visa during that fiscal year.

       ``(iii) Report and publication.--The Secretary of Homeland 
     Security shall on the same date submit to Congress and 
     publish in the Federal Register information relating to the 
     maximum visa overstay rate established under clause (i). Not 
     later than 60 days after such date, the Secretary shall issue 
     a final maximum visa overstay rate above which a country may 
     not participate in the program.
       ``(9) Discretionary security-related considerations.--In 
     determining whether to waive the application of paragraph 
     (2)(A) for a country, pursuant to paragraph (8), the 
     Secretary of Homeland Security, in consultation with the 
     Secretary of State, shall take into consideration other 
     factors affecting the security of the United States, 
     including--
       ``(A) airport security standards in the country;
       ``(B) whether the country assists in the operation of an 
     effective air marshal program;
       ``(C) the standards of passports and travel documents 
     issued by the country; and
       ``(D) other security-related factors, including the 
     country's cooperation with the United States' initiatives 
     toward combating terrorism and the country's cooperation with 
     the United States intelligence community in sharing 
     information regarding terrorist threats.''.
       (d) Security Enhancements to the Visa Waiver Program.--
       (1) In general.--Section 217 of the Immigration and 
     Nationality Act (8 U.S.C. 1187) is amended--
       (A) in subsection (a), in the flush text following 
     paragraph (9)--
       (i) by striking ``Operators of aircraft'' and inserting the 
     following:
       ``(10) Electronic transmission of identification 
     information.--Operators of aircraft''; and
       (ii) by adding at the end the following new paragraph:
       ``(11) Eligibility determination under the electronic 
     travel authorization system.--Beginning on the date on which 
     the electronic travel authorization system developed under 
     subsection (h)(3) is fully operational, each alien traveling 
     under the program shall, before applying for admission to the 
     United States, electronically provide to the system 
     biographical information and such other information as the 
     Secretary of Homeland Security shall determine necessary to 
     determine the eligibility of, and whether there exists a law 
     enforcement or security risk in permitting, the alien to 
     travel to the United States. Upon review of such biographical 
     information, the Secretary of Homeland Security shall 
     determine whether the alien is eligible to travel to the 
     United States under the program.'';
       (B) in subsection (c)--
       (i) in paragraph (2)--

       (I) by amending subparagraph (D) to read as follows:

       ``(D) Reporting lost and stolen passports.--The government 
     of the country enters into an agreement with the United 
     States to report, or make available through Interpol or other 
     means as designated by the Secretary of Homeland Security, to 
     the United States Government information about the theft or 
     loss of passports within a strict time limit and in a manner 
     specified in the agreement.''; and

       (II) by adding at the end the following new subparagraphs:

       ``(E) Repatriation of aliens.--The government of the 
     country accepts for repatriation any citizen, former citizen, 
     or national of the country against whom a final executable 
     order of removal is issued not later than three weeks after 
     the issuance of the final order of removal. Nothing in this 
     subparagraph creates any duty for the United States or any 
     right for any alien with respect to removal or release. 
     Nothing in this subparagraph gives rise to any cause of 
     action or claim under this paragraph or any other law against 
     any official of the United States or of any State to compel 
     the release, removal, or consideration for release or removal 
     of any alien.
       ``(F) Passenger information exchange.--The government of 
     the country enters into an agreement with the United States 
     to share information regarding whether citizens and nationals 
     of that country traveling to the United States represent a 
     threat to the security or welfare of the United States or its 
     citizens.'';
       (ii) in paragraph (5)--

       (I) by striking ``Attorney General'' each place it appears 
     and inserting ``Secretary of Homeland Security''; and
       (II) in subparagraph (A)(i)--

       (aa) in subclause (II), by striking ``and'' at the end;
       (bb) in subclause (III)--

[[Page 20664]]

       (AA) by striking ``and the Committee on International 
     Relations'' and inserting ``, the Committee on Foreign 
     Affairs, and the Committee on Homeland Security,'' and by 
     striking ``and the Committee on Foreign Relations'' and 
     inserting ``, the Committee on Foreign Relations, and the 
     Committee on Homeland Security and Governmental Affairs''; 
     and
       (BB) by striking the period at the end and inserting ``; 
     and''; and
       (cc) by adding at the end the following new subclause:

       ``(IV) shall submit to Congress a report regarding the 
     implementation of the electronic travel authorization system 
     under subsection (h)(3) and the participation of new 
     countries in the program through a waiver under paragraph 
     (8).''; and
       (III) in subparagraph (B), by adding at the end the 
     following new clause:

       ``(iv) Program suspension authority.--The Director of 
     National Intelligence shall immediately inform the Secretary 
     of Homeland Security of any current and credible threat which 
     poses an imminent danger to the United States or its citizens 
     and originates from a country participating in the visa 
     waiver program. Upon receiving such notification, the 
     Secretary, in consultation with the Secretary of State--

       ``(I) may suspend a country from the visa waiver program 
     without prior notice;
       ``(II) shall notify any country suspended under subclause 
     (I) and, to the extent practicable without disclosing 
     sensitive intelligence sources and methods, provide 
     justification for the suspension; and
       ``(III) shall restore the suspended country's participation 
     in the visa waiver program upon a determination that the 
     threat no longer poses an imminent danger to the United 
     States or its citizens.''; and

       (iii) by adding at the end the following new paragraphs:
       ``(10) Technical assistance.--The Secretary of Homeland 
     Security, in consultation with the Secretary of State, shall 
     provide technical assistance to program countries to assist 
     those countries in meeting the requirements under this 
     section. The Secretary of Homeland Security shall ensure that 
     the program office within the Department of Homeland Security 
     is adequately staffed and has resources to be able to provide 
     such technical assistance, in addition to its duties to 
     effectively monitor compliance of the countries participating 
     in the program with all the requirements of the program.
       ``(11) Independent review.--
       ``(A) In general.--Prior to the admission of a new country 
     into the program under this section, and in conjunction with 
     the periodic evaluations required under subsection (c)(5)(A), 
     the Director of National Intelligence shall conduct an 
     independent intelligence assessment of a nominated country 
     and member of the program.
       ``(B) Reporting requirement.--The Director shall provide to 
     the Secretary of Homeland Security, the Secretary of State, 
     and the Attorney General the independent intelligence 
     assessment required under subparagraph (A).
       ``(C) Contents.--The independent intelligence assessment 
     conducted by the Director shall include--
       ``(i) a review of all current, credible terrorist threats 
     of the subject country;
       ``(ii) an evaluation of the subject country's 
     counterterrorism efforts;
       ``(iii) an evaluation as to the extent of the country's 
     sharing of information beneficial to suppressing terrorist 
     movements, financing, or actions;
       ``(iv) an assessment of the risks associated with including 
     the subject country in the program; and
       ``(v) recommendations to mitigate the risks identified in 
     clause (iv).'';
       (C) in subsection (d)--
       (i) by striking ``Attorney General'' and inserting 
     ``Secretary of Homeland Security''; and
       (ii) by adding at the end the following new sentence: ``The 
     Secretary of Homeland Security may not waive any eligibility 
     requirement under this section unless the Secretary notifies, 
     with respect to the House of Representatives, the Committee 
     on Homeland Security, the Committee on the Judiciary, the 
     Committee on Foreign Affairs, and the Committee on 
     Appropriations, and with respect to the Senate, the Committee 
     on Homeland Security and Governmental Affairs, the Committee 
     on the Judiciary, the Committee on Foreign Relations, and the 
     Committee on Appropriations not later than 30 days before the 
     effective date of such waiver.'';
       (D) in subsection (f)(5)--
       (i) by striking ``Attorney General'' each place it appears 
     and inserting ``Secretary of Homeland Security''; and
       (ii) by striking ``of blank'' and inserting ``or loss of'';
       (E) in subsection (h), by adding at the end the following 
     new paragraph:
       ``(3) Electronic travel authorization system.--
       ``(A) System.--The Secretary of Homeland Security, in 
     consultation with the Secretary of State, shall develop and 
     implement a fully automated electronic travel authorization 
     system (referred to in this paragraph as the `System') to 
     collect such biographical and other information as the 
     Secretary of Homeland Security determines necessary to 
     determine, in advance of travel, the eligibility of, and 
     whether there exists a law enforcement or security risk in 
     permitting, the alien to travel to the United States.
       ``(B) Fees.--The Secretary of Homeland Security may charge 
     a fee for the use of the System, which shall be--
       ``(i) set at a level that will ensure recovery of the full 
     costs of providing and administering the System; and
       ``(ii) available to pay the costs incurred to administer 
     the System.
       ``(C) Validity.--
       ``(i) Period.--The Secretary of Homeland Security, in 
     consultation with the Secretary of State, shall prescribe 
     regulations that provide for a period, not to exceed three 
     years, during which a determination of eligibility to travel 
     under the program will be valid. Notwithstanding any other 
     provision under this section, the Secretary of Homeland 
     Security may revoke any such determination at any time and 
     for any reason.
       ``(ii) Limitation.--A determination by the Secretary of 
     Homeland Security that an alien is eligible to travel to the 
     United States under the program is not a determination that 
     the alien is admissible to the United States.
       ``(iii) Not a determination of visa eligibility.--A 
     determination by the Secretary of Homeland Security that an 
     alien who applied for authorization to travel to the United 
     States through the System is not eligible to travel under the 
     program is not a determination of eligibility for a visa to 
     travel to the United States and shall not preclude the alien 
     from applying for a visa.
       ``(iv) Judicial review.--Notwithstanding any other 
     provision of law, no court shall have jurisdiction to review 
     an eligibility determination under the System.
       ``(D) Report.--Not later than 60 days before publishing 
     notice regarding the implementation of the System in the 
     Federal Register, the Secretary of Homeland Security shall 
     submit a report regarding the implementation of the system 
     to--
       ``(i) the Committee on Homeland Security of the House of 
     Representatives;
       ``(ii) the Committee on the Judiciary of the House of 
     Representatives;
       ``(iii) the Committee on Foreign Affairs of the House of 
     Representatives;
       ``(iv) the Permanent Select Committee on Intelligence of 
     the House of Representatives;
       ``(v) the Committee on Appropriations of the House of 
     Representatives;
       ``(vi) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       ``(vii) the Committee on the Judiciary of the Senate;
       ``(viii) the Committee on Foreign Relations of the Senate;
       ``(ix) the Select Committee on Intelligence of the Senate; 
     and
       ``(x) the Committee on Appropriations of the Senate.''; and
       (F) by adding at the end the following new subsection:
       ``(i) Exit System.--
       ``(1) In general.--Not later than one year after the date 
     of the enactment of this subsection, the Secretary of 
     Homeland Security shall establish an exit system that records 
     the departure on a flight leaving the United States of every 
     alien participating in the visa waiver program established 
     under this section.
       ``(2) System requirements.--The system established under 
     paragraph (1) shall--
       ``(A) match biometric information of the alien against 
     relevant watch lists and immigration information; and
       ``(B) compare such biometric information against manifest 
     information collected by air carriers on passengers departing 
     the United States to confirm such aliens have departed the 
     United States.
       ``(3) Report.--Not later than 180 days after the date of 
     the enactment of this subsection, the Secretary shall submit 
     to Congress a report that describes--
       ``(A) the progress made in developing and deploying the 
     exit system established under this subsection; and
       ``(B) the procedures by which the Secretary shall improve 
     the method of calculating the rates of nonimmigrants who 
     overstay their authorized period of stay in the United 
     States.''.
       (2) Effective date.--Section 217(a)(11) of the Immigration 
     and Nationality Act, as added by paragraph (1)(A)(ii), shall 
     take effect on the date that is 60 days after the date on 
     which the Secretary of Homeland Security publishes notice in 
     the Federal Register of the requirement under such paragraph.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security such 
     sums as may be necessary to carry out this section and the 
     amendments made by this section.

        Subtitle C--Strengthening Terrorism Prevention Programs

     SEC. 721. STRENGTHENING THE CAPABILITIES OF THE HUMAN 
                   SMUGGLING AND TRAFFICKING CENTER.

       (a) In General.--Section 7202 of the Intelligence Reform 
     and Terrorism Prevention Act of 2004 (8 U.S.C. 1777) is 
     amended--
       (1) in subsection (c)(1), by striking ``address'' and 
     inserting ``integrate and disseminate intelligence and 
     information related to'';
       (2) by redesignating subsections (d) and (e) as subsections 
     (g) and (h), respectively; and
       (3) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Director.--The Secretary of Homeland Security shall 
     nominate an official of the Government of the United States 
     to serve as the Director of the Center, in accordance with 
     the requirements of the memorandum of understanding entitled 
     the `Human Smuggling and Trafficking Center (HSTC) Charter'.
       ``(e) Staffing of the Center.--

[[Page 20665]]

       ``(1) In general.--The Secretary of Homeland Security, in 
     cooperation with heads of other relevant agencies and 
     departments, shall ensure that the Center is staffed with not 
     fewer than 40 full-time equivalent positions, including, as 
     appropriate, detailees from the following:
       ``(A) Agencies and offices within the Department of 
     Homeland Security, including the following:
       ``(i) The Office of Intelligence and Analysis.
       ``(ii) The Transportation Security Administration.
       ``(iii) United States Citizenship and Immigration Services.
       ``(iv) United States Customs and Border Protection.
       ``(v) The United States Coast Guard.
       ``(vi) United States Immigration and Customs Enforcement.
       ``(B) Other departments, agencies, or entities, including 
     the following:
       ``(i) The Central Intelligence Agency.
       ``(ii) The Department of Defense.
       ``(iii) The Department of the Treasury.
       ``(iv) The National Counterterrorism Center.
       ``(v) The National Security Agency.
       ``(vi) The Department of Justice.
       ``(vii) The Department of State.
       ``(viii) Any other relevant agency or department.
       ``(2) Expertise of detailees.--The Secretary of Homeland 
     Security, in cooperation with the head of each agency, 
     department, or other entity referred to in paragraph (1), 
     shall ensure that the detailees provided to the Center under 
     such paragraph include an adequate number of personnel who 
     are--
       ``(A) intelligence analysts or special agents with 
     demonstrated experience related to human smuggling, 
     trafficking in persons, or terrorist travel; and
       ``(B) personnel with experience in the areas of--
       ``(i) consular affairs;
       ``(ii) counterterrorism;
       ``(iii) criminal law enforcement;
       ``(iv) intelligence analysis;
       ``(v) prevention and detection of document fraud;
       ``(vi) border inspection;
       ``(vii) immigration enforcement; or
       ``(viii) human trafficking and combating severe forms of 
     trafficking in persons.
       ``(3) Enhanced personnel management.--
       ``(A) Incentives for service in certain positions.--
       ``(i) In general.--The Secretary of Homeland Security, and 
     the heads of other relevant agencies, shall prescribe 
     regulations or promulgate personnel policies to provide 
     incentives for service on the staff of the Center, 
     particularly for serving terms of at least two years 
     duration.
       ``(ii) Forms of incentives.--Incentives under clause (i) 
     may include financial incentives, bonuses, and such other 
     awards and incentives as the Secretary and the heads of other 
     relevant agencies, consider appropriate.
       ``(B) Enhanced promotion for service at the center.--
     Notwithstanding any other provision of law, the Secretary of 
     Homeland Security, and the heads of other relevant agencies, 
     shall ensure that personnel who are assigned or detailed to 
     service at the Center shall be considered for promotion at 
     rates equivalent to or better than similarly situated 
     personnel of such agencies who are not so assigned or 
     detailed, except that this subparagraph shall not apply in 
     the case of personnel who are subject to the provisions of 
     the Foreign Service Act of 1980.
       ``(f) Administrative Support and Funding.--The Secretary of 
     Homeland Security shall provide to the Center the 
     administrative support and funding required for its 
     maintenance, including funding for personnel, leasing of 
     office space, supplies, equipment, technology, training, and 
     travel expenses necessary for the Center to carry out its 
     functions.''.
       (b) Report.--Subsection (g) of section 7202 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004, as 
     redesignated by subsection (a)(2), is amended to read as 
     follows:
       ``(g) Report.--
       ``(1) Initial report.--Not later than 180 days after 
     December 17, 2004, the President shall transmit to Congress a 
     report regarding the implementation of this section, 
     including a description of the staffing and resource needs of 
     the Center.
       ``(2) Follow-up report.--Not later than 180 days after the 
     date of the enactment of the Implementing Recommendations of 
     the 9/11 Commission Act of 2007, the President shall transmit 
     to Congress a report regarding the operation of the Center 
     and the activities carried out by the Center, including a 
     description of--
       ``(A) the roles and responsibilities of each agency or 
     department that is participating in the Center;
       ``(B) the mechanisms used to share information among each 
     such agency or department;
       ``(C) the personnel provided to the Center by each such 
     agency or department;
       ``(D) the type of information and reports being 
     disseminated by the Center;
       ``(E) any efforts by the Center to create a centralized 
     Federal Government database to store information related to 
     unlawful travel of foreign nationals, including a description 
     of any such database and of the manner in which information 
     utilized in such a database would be collected, stored, and 
     shared;
       ``(F) how each agency and department shall utilize its 
     resources to ensure that the Center uses intelligence to 
     focus and drive its efforts;
       ``(G) efforts to consolidate networked systems for the 
     Center;
       ``(H) the mechanisms for the sharing of homeland security 
     information from the Center to the Office of Intelligence and 
     Analysis, including how such sharing shall be consistent with 
     section 1016(b);
       ``(I) the ability of participating personnel in the Center 
     to freely access necessary databases and share information 
     regarding issues related to human smuggling, trafficking in 
     persons, and terrorist travel;
       ``(J) how the assignment of personnel to the Center is 
     incorporated into the civil service career path of such 
     personnel; and
       ``(K) cooperation and coordination efforts, including any 
     memorandums of understanding, among participating agencies 
     and departments regarding issues related to human smuggling, 
     trafficking in persons, and terrorist travel.''.
       (c) Coordination With the Office of Intelligence and 
     Analysis.--Section 7202 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 is amended by adding after 
     subsection (h), as redesignated by subsection (a)(2), the 
     following new subsection:
       ``(i) Coordination With the Office of Intelligence and 
     Analysis.--The Office of Intelligence and Analysis, in 
     coordination with the Center, shall submit to relevant State, 
     local, and tribal law enforcement agencies periodic reports 
     regarding terrorist threats related to human smuggling, human 
     trafficking, and terrorist travel.''.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security 
     $20,000,000 for fiscal year 2008 to carry out section 7202 of 
     the Intelligence Reform and Terrorism Prevention Act of 2004, 
     as amended by this section.

     SEC. 722. ENHANCEMENTS TO THE TERRORIST TRAVEL PROGRAM.

       Section 7215 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 123) is amended to read as 
     follows:

     ``SEC. 7215. TERRORIST TRAVEL PROGRAM.

       ``(a) Requirement To Establish.--Not later than 90 days 
     after the date of the enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     Secretary of Homeland Security, in consultation with the 
     Director of the National Counterterrorism Center and 
     consistent with the strategy developed under section 7201, 
     shall establish a program to oversee the implementation of 
     the Secretary's responsibilities with respect to terrorist 
     travel.
       ``(b) Head of the Program.--The Secretary of Homeland 
     Security shall designate an official of the Department of 
     Homeland Security to be responsible for carrying out the 
     program. Such official shall be--
       ``(1) the Assistant Secretary for Policy of the Department 
     of Homeland Security; or
       ``(2) an official appointed by the Secretary who reports 
     directly to the Secretary.
       ``(c) Duties.--The official designated under subsection (b) 
     shall assist the Secretary of Homeland Security in improving 
     the Department's ability to prevent terrorists from entering 
     the United States or remaining in the United States 
     undetected by--
       ``(1) developing relevant strategies and policies;
       ``(2) reviewing the effectiveness of existing programs and 
     recommending improvements, if necessary;
       ``(3) making recommendations on budget requests and on the 
     allocation of funding and personnel;
       ``(4) ensuring effective coordination, with respect to 
     policies, programs, planning, operations, and dissemination 
     of intelligence and information related to terrorist travel--
       ``(A) among appropriate subdivisions of the Department of 
     Homeland Security, as determined by the Secretary and 
     including--
       ``(i) United States Customs and Border Protection;
       ``(ii) United States Immigration and Customs Enforcement;
       ``(iii) United States Citizenship and Immigration Services;
       ``(iv) the Transportation Security Administration; and
       ``(v) the United States Coast Guard; and
       ``(B) between the Department of Homeland Security and other 
     appropriate Federal agencies; and
       ``(5) serving as the Secretary's primary point of contact 
     with the National Counterterrorism Center for implementing 
     initiatives related to terrorist travel and ensuring that the 
     recommendations of the Center related to terrorist travel are 
     carried out by the Department.
       ``(d) Report.--Not later than 180 days after the date of 
     the enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Secretary of Homeland Security 
     shall submit to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report on 
     the implementation of this section.''.

     SEC. 723. ENHANCED DRIVER'S LICENSE.

       Section 7209(b)(1) of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (8 U.S.C. 1185 note) is amended--
       (1) in subparagraph (B)--
       (A) in clause (vi), by striking ``and'' at the end;
       (B) in clause (vii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new clause:
       ``(viii) the signing of a memorandum of agreement to 
     initiate a pilot program with not less than one State to 
     determine if an enhanced driver's license, which is machine-
     readable and tamper proof, not valid for certification of 
     citizenship for any purpose other than admission

[[Page 20666]]

     into the United States from Canada or Mexico, and issued by 
     such State to an individual, may permit the individual to use 
     the driver's license to meet the documentation requirements 
     under subparagraph (A) for entry into the United States from 
     Canada or Mexico at land and sea ports of entry.''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Report.--Not later than 180 days after the initiation 
     of the pilot program described in subparagraph (B)(viii), the 
     Secretary of Homeland Security and the Secretary of State 
     shall submit to the appropriate congressional committees a 
     report which includes--
       ``(i) an analysis of the impact of the pilot program on 
     national security;
       ``(ii) recommendations on how to expand the pilot program 
     to other States;
       ``(iii) any appropriate statutory changes to facilitate the 
     expansion of the pilot program to additional States and to 
     citizens of Canada;
       ``(iv) a plan to screen individuals participating in the 
     pilot program against United States terrorist watch lists; 
     and
       ``(v) a recommendation for the type of machine-readable 
     technology that should be used in enhanced driver's licenses, 
     based on individual privacy considerations and the costs and 
     feasibility of incorporating any new technology into existing 
     driver's licenses.''.

     SEC. 724. WESTERN HEMISPHERE TRAVEL INITIATIVE.

       Before the Secretary of Homeland Security publishes a final 
     rule in the Federal Register implementing section 7209 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458; 8 U.S.C. 1185 note)--
       (1) the Secretary of Homeland Security shall complete a 
     cost-benefit analysis of the Western Hemisphere Travel 
     Initiative, authorized under such section 7209; and
       (2) the Secretary of State shall develop proposals for 
     reducing the execution fee charged for the passport card, 
     proposed at 71 Fed. Reg. 60928-32 (October 17, 2006), 
     including the use of mobile application teams, during 
     implementation of the land and sea phase of the Western 
     Hemisphere Travel Initiative, in order to encourage United 
     States citizens to apply for the passport card.

     SEC. 725. MODEL PORTS-OF-ENTRY.

       (a) In General.--The Secretary of Homeland Security shall--
       (1) establish a model ports-of-entry program for the 
     purpose of providing a more efficient and welcoming 
     international arrival process in order to facilitate and 
     promote business and tourist travel to the United States, 
     while also improving security; and
       (2) implement the program initially at the 20 United States 
     international airports that have the highest number of 
     foreign visitors arriving annually as of the date of the 
     enactment of this Act.
       (b) Program Elements.--The program shall include--
       (1) enhanced queue management in the Federal Inspection 
     Services area leading up to primary inspection;
       (2) assistance for foreign travelers once they have been 
     admitted to the United States, in consultation, as 
     appropriate, with relevant governmental and nongovernmental 
     entities; and
       (3) instructional videos, in English and such other 
     languages as the Secretary determines appropriate, in the 
     Federal Inspection Services area that explain the United 
     States inspection process and feature national, regional, or 
     local welcome videos.
       (c) Additional Customs and Border Protection Officers for 
     High-Volume Ports.--Subject to the availability of 
     appropriations, not later than the end of fiscal year 2008 
     the Secretary of Homeland Security shall employ not fewer 
     than an additional 200 Customs and Border Protection officers 
     over the number of such positions for which funds were 
     appropriated for the proceeding fiscal year to address staff 
     shortages at the 20 United States international airports that 
     have the highest number of foreign visitors arriving annually 
     as of the date of the enactment of this Act.

                  Subtitle D--Miscellaneous Provisions

     SEC. 731. REPORT REGARDING BORDER SECURITY.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Homeland Security 
     shall submit to Congress a report regarding ongoing 
     initiatives of the Department of Homeland Security to improve 
     security along the northern border of the United States.
       (b) Contents.--The report submitted under subsection (a) 
     shall--
       (1) address the vulnerabilities along the northern border 
     of the United States; and
       (2) provide recommendations to address such 
     vulnerabilities, including required resources needed to 
     protect the northern border of the United States.
       (c) Government Accountability Office.--Not later than 270 
     days after the date of the submission of the report under 
     subsection (a), the Comptroller General of the United States 
     shall submit to Congress a report that--
       (1) reviews and comments on the report under subsection 
     (a); and
       (2) provides recommendations regarding any additional 
     actions necessary to protect the northern border of the 
     United States.

                TITLE VIII--PRIVACY AND CIVIL LIBERTIES

     SEC. 801. MODIFICATION OF AUTHORITIES RELATING TO PRIVACY AND 
                   CIVIL LIBERTIES OVERSIGHT BOARD.

       (a) Modification of Authorities.--Section 1061 of the 
     National Security Intelligence Reform Act of 2004 (5 U.S.C. 
     601 note) is amended to read as follows:

     ``SEC. 1061. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

       ``(a) In General.--There is established as an independent 
     agency within the executive branch a Privacy and Civil 
     Liberties Oversight Board (referred to in this section as the 
     `Board').
       ``(b) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       ``(1) In conducting the war on terrorism, the Government 
     may need additional powers and may need to enhance the use of 
     its existing powers.
       ``(2) This shift of power and authority to the Government 
     calls for an enhanced system of checks and balances to 
     protect the precious liberties that are vital to our way of 
     life and to ensure that the Government uses its powers for 
     the purposes for which the powers were given.
       ``(3) The National Commission on Terrorist Attacks Upon the 
     United States correctly concluded that `The choice between 
     security and liberty is a false choice, as nothing is more 
     likely to endanger America's liberties than the success of a 
     terrorist attack at home. Our history has shown us that 
     insecurity threatens liberty. Yet, if our liberties are 
     curtailed, we lose the values that we are struggling to 
     defend.'.
       ``(c) Purpose.--The Board shall--
       ``(1) analyze and review actions the executive branch takes 
     to protect the Nation from terrorism, ensuring that the need 
     for such actions is balanced with the need to protect privacy 
     and civil liberties; and
       ``(2) ensure that liberty concerns are appropriately 
     considered in the development and implementation of laws, 
     regulations, and policies related to efforts to protect the 
     Nation against terrorism.
       ``(d) Functions.--
       ``(1) Advice and counsel on policy development and 
     implementation.--The Board shall--
       ``(A) review proposed legislation, regulations, and 
     policies related to efforts to protect the Nation from 
     terrorism, including the development and adoption of 
     information sharing guidelines under subsections (d) and (f) 
     of section 1016;
       ``(B) review the implementation of new and existing 
     legislation, regulations, and policies related to efforts to 
     protect the Nation from terrorism, including the 
     implementation of information sharing guidelines under 
     subsections (d) and (f) of section 1016;
       ``(C) advise the President and the departments, agencies, 
     and elements of the executive branch to ensure that privacy 
     and civil liberties are appropriately considered in the 
     development and implementation of such legislation, 
     regulations, policies, and guidelines; and
       ``(D) in providing advice on proposals to retain or enhance 
     a particular governmental power, consider whether the 
     department, agency, or element of the executive branch has 
     established--
       ``(i) that the need for the power is balanced with the need 
     to protect privacy and civil liberties;
       ``(ii) that there is adequate supervision of the use by the 
     executive branch of the power to ensure protection of privacy 
     and civil liberties; and
       ``(iii) that there are adequate guidelines and oversight to 
     properly confine its use.
       ``(2) Oversight.--The Board shall continually review--
       ``(A) the regulations, policies, and procedures, and the 
     implementation of the regulations, policies, and procedures, 
     of the departments, agencies, and elements of the executive 
     branch relating to efforts to protect the Nation from 
     terrorism to ensure that privacy and civil liberties are 
     protected;
       ``(B) the information sharing practices of the departments, 
     agencies, and elements of the executive branch relating to 
     efforts to protect the Nation from terrorism to determine 
     whether they appropriately protect privacy and civil 
     liberties and adhere to the information sharing guidelines 
     issued or developed under subsections (d) and (f) of section 
     1016 and to other governing laws, regulations, and policies 
     regarding privacy and civil liberties; and
       ``(C) other actions by the executive branch relating to 
     efforts to protect the Nation from terrorism to determine 
     whether such actions--
       ``(i) appropriately protect privacy and civil liberties; 
     and
       ``(ii) are consistent with governing laws, regulations, and 
     policies regarding privacy and civil liberties.
       ``(3) Relationship with privacy and civil liberties 
     officers.--The Board shall--
       ``(A) receive and review reports and other information from 
     privacy officers and civil liberties officers under section 
     1062;
       ``(B) when appropriate, make recommendations to such 
     privacy officers and civil liberties officers regarding their 
     activities; and
       ``(C) when appropriate, coordinate the activities of such 
     privacy officers and civil liberties officers on relevant 
     interagency matters.
       ``(4) Testimony.--The members of the Board shall appear and 
     testify before Congress upon request.
       ``(e) Reports.--
       ``(1) In general.--The Board shall--
       ``(A) receive and review reports from privacy officers and 
     civil liberties officers under section 1062; and

[[Page 20667]]

       ``(B) periodically submit, not less than semiannually, 
     reports--
       ``(i)(I) to the appropriate committees of Congress, 
     including the Committee on the Judiciary of the Senate, the 
     Committee on the Judiciary of the House of Representatives, 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate, the Committee on Homeland Security of the 
     House of Representatives, the Committee on Oversight and 
     Government Reform of the House of Representatives, the Select 
     Committee on Intelligence of the Senate, and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives; and
       ``(II) to the President; and
       ``(ii) which shall be in unclassified form to the greatest 
     extent possible, with a classified annex where necessary.
       ``(2) Contents.--Not less than 2 reports submitted each 
     year under paragraph (1)(B) shall include--
       ``(A) a description of the major activities of the Board 
     during the preceding period;
       ``(B) information on the findings, conclusions, and 
     recommendations of the Board resulting from its advice and 
     oversight functions under subsection (d);
       ``(C) the minority views on any findings, conclusions, and 
     recommendations of the Board resulting from its advice and 
     oversight functions under subsection (d);
       ``(D) each proposal reviewed by the Board under subsection 
     (d)(1) that--
       ``(i) the Board advised against implementation; and
       ``(ii) notwithstanding such advice, actions were taken to 
     implement; and
       ``(E) for the preceding period, any requests submitted 
     under subsection (g)(1)(D) for the issuance of subpoenas that 
     were modified or denied by the Attorney General.
       ``(f) Informing the Public.--The Board shall--
       ``(1) make its reports, including its reports to Congress, 
     available to the public to the greatest extent that is 
     consistent with the protection of classified information and 
     applicable law; and
       ``(2) hold public hearings and otherwise inform the public 
     of its activities, as appropriate and in a manner consistent 
     with the protection of classified information and applicable 
     law.
       ``(g) Access to Information.--
       ``(1) Authorization.--If determined by the Board to be 
     necessary to carry out its responsibilities under this 
     section, the Board is authorized to--
       ``(A) have access from any department, agency, or element 
     of the executive branch, or any Federal officer or employee 
     of any such department, agency, or element, to all relevant 
     records, reports, audits, reviews, documents, papers, 
     recommendations, or other relevant material, including 
     classified information consistent with applicable law;
       ``(B) interview, take statements from, or take public 
     testimony from personnel of any department, agency, or 
     element of the executive branch, or any Federal officer or 
     employee of any such department, agency, or element;
       ``(C) request information or assistance from any State, 
     tribal, or local government; and
       ``(D) at the direction of a majority of the members of the 
     Board, submit a written request to the Attorney General of 
     the United States that the Attorney General require, by 
     subpoena, persons (other than departments, agencies, and 
     elements of the executive branch) to produce any relevant 
     information, documents, reports, answers, records, accounts, 
     papers, and other documentary or testimonial evidence.
       ``(2) Review of subpoena request.--
       ``(A) In general.--Not later than 30 days after the date of 
     receipt of a request by the Board under paragraph (1)(D), the 
     Attorney General shall--
       ``(i) issue the subpoena as requested; or
       ``(ii) provide the Board, in writing, with an explanation 
     of the grounds on which the subpoena request has been 
     modified or denied.
       ``(B) Notification.--If a subpoena request is modified or 
     denied under subparagraph (A)(ii), the Attorney General 
     shall, not later than 30 days after the date of that 
     modification or denial, notify the Committee on the Judiciary 
     of the Senate and the Committee on the Judiciary of the House 
     of Representatives.
       ``(3) Enforcement of subpoena.--In the case of contumacy or 
     failure to obey a subpoena issued pursuant to paragraph 
     (1)(D), the United States district court for the judicial 
     district in which the subpoenaed person resides, is served, 
     or may be found may issue an order requiring such person to 
     produce the evidence required by such subpoena.
       ``(4) Agency cooperation.--Whenever information or 
     assistance requested under subparagraph (A) or (B) of 
     paragraph (1) is, in the judgment of the Board, unreasonably 
     refused or not provided, the Board shall report the 
     circumstances to the head of the department, agency, or 
     element concerned without delay. The head of the department, 
     agency, or element concerned shall ensure that the Board is 
     given access to the information, assistance, material, or 
     personnel the Board determines to be necessary to carry out 
     its functions.
       ``(h) Membership.--
       ``(1) Members.--The Board shall be composed of a full-time 
     chairman and 4 additional members, who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       ``(2) Qualifications.--Members of the Board shall be 
     selected solely on the basis of their professional 
     qualifications, achievements, public stature, expertise in 
     civil liberties and privacy, and relevant experience, and 
     without regard to political affiliation, but in no event 
     shall more than 3 members of the Board be members of the same 
     political party. The President shall, before appointing an 
     individual who is not a member of the same political party as 
     the President, consult with the leadership of that party, if 
     any, in the Senate and House of Representatives.
       ``(3) Incompatible office.--An individual appointed to the 
     Board may not, while serving on the Board, be an elected 
     official, officer, or employee of the Federal Government, 
     other than in the capacity as a member of the Board.
       ``(4) Term.--Each member of the Board shall serve a term of 
     6 years, except that--
       ``(A) a member appointed to a term of office after the 
     commencement of such term may serve under such appointment 
     only for the remainder of such term; and
       ``(B) upon the expiration of the term of office of a 
     member, the member shall continue to serve until the member's 
     successor has been appointed and qualified, except that no 
     member may serve under this subparagraph--
       ``(i) for more than 60 days when Congress is in session 
     unless a nomination to fill the vacancy shall have been 
     submitted to the Senate; or
       ``(ii) after the adjournment sine die of the session of the 
     Senate in which such nomination is submitted.
       ``(5) Quorum and meetings.--The Board shall meet upon the 
     call of the chairman or a majority of its members. Three 
     members of the Board shall constitute a quorum.
       ``(i) Compensation and Travel Expenses.--
       ``(1) Compensation.--
       ``(A) Chairman.--The chairman of the Board shall be 
     compensated at the rate of pay payable for a position at 
     level III of the Executive Schedule under section 5314 of 
     title 5, United States Code.
       ``(B) Members.--Each member of the Board shall be 
     compensated at a rate of pay payable for a position at level 
     IV of the Executive Schedule under section 5315 of title 5, 
     United States Code, for each day during which that member is 
     engaged in the actual performance of the duties of the Board.
       ``(2) Travel expenses.--Members of the Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for persons employed 
     intermittently by the Government under section 5703(b) of 
     title 5, United States Code, while away from their homes or 
     regular places of business in the performance of services for 
     the Board.
       ``(j) Staff.--
       ``(1) Appointment and compensation.--The chairman of the 
     Board, in accordance with rules agreed upon by the Board, 
     shall appoint and fix the compensation of a full-time 
     executive director and such other personnel as may be 
     necessary to enable the Board to carry out its functions, 
     without regard to the provisions of title 5, United States 
     Code, governing appointments in the competitive service, and 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of such title relating to classification 
     and General Schedule pay rates, except that no rate of pay 
     fixed under this subsection may exceed the equivalent of that 
     payable for a position at level V of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       ``(2) Detailees.--Any Federal employee may be detailed to 
     the Board without reimbursement from the Board, and such 
     detailee shall retain the rights, status, and privileges of 
     the detailee's regular employment without interruption.
       ``(3) Consultant services.--The Board may procure the 
     temporary or intermittent services of experts and consultants 
     in accordance with section 3109 of title 5, United States 
     Code, at rates that do not exceed the daily rate paid a 
     person occupying a position at level IV of the Executive 
     Schedule under section 5315 of such title.
       ``(k) Security Clearances.--
       ``(1) In general.--The appropriate departments, agencies, 
     and elements of the executive branch shall cooperate with the 
     Board to expeditiously provide the Board members and staff 
     with appropriate security clearances to the extent possible 
     under existing procedures and requirements.
       ``(2) Rules and procedures.--After consultation with the 
     Secretary of Defense, the Attorney General, and the Director 
     of National Intelligence, the Board shall adopt rules and 
     procedures of the Board for physical, communications, 
     computer, document, personnel, and other security relating to 
     carrying out the functions of the Board.
       ``(l) Treatment as Agency, Not as Advisory Committee.--The 
     Board--
       ``(1) is an agency (as defined in section 551(1) of title 
     5, United States Code); and
       ``(2) is not an advisory committee (as defined in section 
     3(2) of the Federal Advisory Committee Act (5 U.S.C. App.)).
       ``(m) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     amounts as follows:
       ``(1) For fiscal year 2008, $5,000,000.
       ``(2) For fiscal year 2009, $6,650,000.
       ``(3) For fiscal year 2010, $8,300,000.
       ``(4) For fiscal year 2011, $10,000,000.
       ``(5) For fiscal year 2012 and each subsequent fiscal year, 
     such sums as may be necessary.''.
       (b) Security Rules and Procedures.--The Privacy and Civil 
     Liberties Oversight Board shall promptly adopt the security 
     rules and procedures required under section 1061(k)(2) of the 
     National Security Intelligence Reform Act of 2004 (as added 
     by subsection (a) of this section).
       (c) Transition Provisions.--
       (1) Treatment of incumbent members of the privacy and civil 
     liberties oversight board.--

[[Page 20668]]

       (A) Continuation of service.--Any individual who is a 
     member of the Privacy and Civil Liberties Oversight Board on 
     the date of enactment of this Act may continue to serve on 
     the Board until 180 days after the date of enactment of this 
     Act.
       (B) Termination of terms.--The term of any individual who 
     is a member of the Privacy and Civil Liberties Oversight 
     Board on the date of enactment of this Act shall terminate 
     180 days after the date of enactment of this Act.
       (2) Appointments.--
       (A) In general.--The President and the Senate shall take 
     such actions as necessary for the President, by and with the 
     advice and consent of the Senate, to appoint members to the 
     Privacy and Civil Liberties Oversight Board as constituted 
     under the amendments made by subsection (a) in a timely 
     manner to provide for the continuing operation of the Board 
     and orderly implementation of this section.
       (B) Designations.--In making the appointments described 
     under subparagraph (A) of the first members of the Privacy 
     and Civil Liberties Oversight Board as constituted under the 
     amendments made by subsection (a), the President shall 
     provide for the members to serve terms of 2, 3, 4, 5, and 6 
     years beginning on the effective date described under 
     subsection (d)(1), with the term of each such member to be 
     designated by the President.
       (d) Effective Date.--
       (1) In general.--The amendments made by subsection (a) and 
     subsection (b) shall take effect 180 days after the date of 
     enactment of this Act.
       (2) Transition provisions.--Subsection (c) shall take 
     effect on the date of enactment of this Act.

     SEC. 802. DEPARTMENT PRIVACY OFFICER.

       Section 222 of the Homeland Security Act of 2002 (6 U.S.C. 
     142) is amended--
       (1) by inserting ``(a) Appointment and Responsibilities.--
     '' before ``The Secretary''; and
       (2) by adding at the end the following:
       ``(b) Authority To Investigate.--
       ``(1) In general.--The senior official appointed under 
     subsection (a) may--
       ``(A) have access to all records, reports, audits, reviews, 
     documents, papers, recommendations, and other materials 
     available to the Department that relate to programs and 
     operations with respect to the responsibilities of the senior 
     official under this section;
       ``(B) make such investigations and reports relating to the 
     administration of the programs and operations of the 
     Department as are, in the senior official's judgment, 
     necessary or desirable;
       ``(C) subject to the approval of the Secretary, require by 
     subpoena the production, by any person other than a Federal 
     agency, of all information, documents, reports, answers, 
     records, accounts, papers, and other data and documentary 
     evidence necessary to performance of the responsibilities of 
     the senior official under this section; and
       ``(D) administer to or take from any person an oath, 
     affirmation, or affidavit, whenever necessary to performance 
     of the responsibilities of the senior official under this 
     section.
       ``(2) Enforcement of subpoenas.--Any subpoena issued under 
     paragraph (1)(C) shall, in the case of contumacy or refusal 
     to obey, be enforceable by order of any appropriate United 
     States district court.
       ``(3) Effect of oaths.--Any oath, affirmation, or affidavit 
     administered or taken under paragraph (1)(D) by or before an 
     employee of the Privacy Office designated for that purpose by 
     the senior official appointed under subsection (a) shall have 
     the same force and effect as if administered or taken by or 
     before an officer having a seal of office.
       ``(c) Supervision and Coordination.--
       ``(1) In general.--The senior official appointed under 
     subsection (a) shall--
       ``(A) report to, and be under the general supervision of, 
     the Secretary; and
       ``(B) coordinate activities with the Inspector General of 
     the Department in order to avoid duplication of effort.
       ``(2) Coordination with the inspector general.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the senior official appointed under subsection (a) may 
     investigate any matter relating to possible violations or 
     abuse concerning the administration of any program or 
     operation of the Department relevant to the purposes under 
     this section.
       ``(B) Coordination.--
       ``(i) Referral.--Before initiating any investigation 
     described under subparagraph (A), the senior official shall 
     refer the matter and all related complaints, allegations, and 
     information to the Inspector General of the Department.
       ``(ii) Determinations and notifications by the inspector 
     general.--

       ``(I) In general.--Not later than 30 days after the receipt 
     of a matter referred under clause (i), the Inspector General 
     shall--

       ``(aa) make a determination regarding whether the Inspector 
     General intends to initiate an audit or investigation of the 
     matter referred under clause (i); and
       ``(bb) notify the senior official of that determination.

       ``(II) Investigation not initiated.--If the Inspector 
     General notifies the senior official under subclause (I)(bb) 
     that the Inspector General intended to initiate an audit or 
     investigation, but does not initiate that audit or 
     investigation within 90 days after providing that 
     notification, the Inspector General shall further notify the 
     senior official that an audit or investigation was not 
     initiated. The further notification under this subclause 
     shall be made not later than 3 days after the end of that 90-
     day period.

       ``(iii) Investigation by senior official.--The senior 
     official may investigate a matter referred under clause (i) 
     if--

       ``(I) the Inspector General notifies the senior official 
     under clause (ii)(I)(bb) that the Inspector General does not 
     intend to initiate an audit or investigation relating to that 
     matter; or
       ``(II) the Inspector General provides a further 
     notification under clause (ii)(II) relating to that matter.

       ``(iv) Privacy training.--Any employee of the Office of 
     Inspector General who audits or investigates any matter 
     referred under clause (i) shall be required to receive 
     adequate training on privacy laws, rules, and regulations, to 
     be provided by an entity approved by the Inspector General in 
     consultation with the senior official appointed under 
     subsection (a).
       ``(d) Notification to Congress on Removal.--If the 
     Secretary removes the senior official appointed under 
     subsection (a) or transfers that senior official to another 
     position or location within the Department, the Secretary 
     shall--
       ``(1) promptly submit a written notification of the removal 
     or transfer to Houses of Congress; and
       ``(2) include in any such notification the reasons for the 
     removal or transfer.
       ``(e) Reports by Senior Official to Congress.--The senior 
     official appointed under subsection (a) shall--
       ``(1) submit reports directly to the Congress regarding 
     performance of the responsibilities of the senior official 
     under this section, without any prior comment or amendment by 
     the Secretary, Deputy Secretary, or any other officer or 
     employee of the Department or the Office of Management and 
     Budget; and
       ``(2) inform the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives not later 
     than--
       ``(A) 30 days after the Secretary disapproves the senior 
     official's request for a subpoena under subsection (b)(1)(C) 
     or the Secretary substantively modifies the requested 
     subpoena; or
       ``(B) 45 days after the senior official's request for a 
     subpoena under subsection (b)(1)(C), if that subpoena has not 
     either been approved or disapproved by the Secretary.''.

     SEC. 803. PRIVACY AND CIVIL LIBERTIES OFFICERS.

       (a) In General.--Section 1062 of the National Security 
     Intelligence Reform Act of 2004 (title I of Public Law 108-
     458; 118 Stat. 3688) is amended to read as follows:

     ``SEC. 1062. PRIVACY AND CIVIL LIBERTIES OFFICERS.

       ``(a) Designation and Functions.--The Attorney General, the 
     Secretary of Defense, the Secretary of State, the Secretary 
     of the Treasury, the Secretary of Health and Human Services, 
     the Secretary of Homeland Security, the Director of National 
     Intelligence, the Director of the Central Intelligence 
     Agency, and the head of any other department, agency, or 
     element of the executive branch designated by the Privacy and 
     Civil Liberties Oversight Board under section 1061 to be 
     appropriate for coverage under this section shall designate 
     not less than 1 senior officer to serve as the principal 
     advisor to--
       ``(1) assist the head of such department, agency, or 
     element and other officials of such department, agency, or 
     element in appropriately considering privacy and civil 
     liberties concerns when such officials are proposing, 
     developing, or implementing laws, regulations, policies, 
     procedures, or guidelines related to efforts to protect the 
     Nation against terrorism;
       ``(2) periodically investigate and review department, 
     agency, or element actions, policies, procedures, guidelines, 
     and related laws and their implementation to ensure that such 
     department, agency, or element is adequately considering 
     privacy and civil liberties in its actions;
       ``(3) ensure that such department, agency, or element has 
     adequate procedures to receive, investigate, respond to, and 
     redress complaints from individuals who allege such 
     department, agency, or element has violated their privacy or 
     civil liberties; and
       ``(4) in providing advice on proposals to retain or enhance 
     a particular governmental power the officer shall consider 
     whether such department, agency, or element has established--
       ``(A) that the need for the power is balanced with the need 
     to protect privacy and civil liberties;
       ``(B) that there is adequate supervision of the use by such 
     department, agency, or element of the power to ensure 
     protection of privacy and civil liberties; and
       ``(C) that there are adequate guidelines and oversight to 
     properly confine its use.
       ``(b) Exception to Designation Authority.--
       ``(1) Privacy officers.--In any department, agency, or 
     element referred to in subsection (a) or designated by the 
     Privacy and Civil Liberties Oversight Board, which has a 
     statutorily created privacy officer, such officer shall 
     perform the functions specified in subsection (a) with 
     respect to privacy.
       ``(2) Civil liberties officers.--In any department, agency, 
     or element referred to in subsection (a) or designated by the 
     Board, which has a statutorily created civil liberties 
     officer, such officer shall perform the functions specified 
     in subsection (a) with respect to civil liberties.
       ``(c) Supervision and Coordination.--Each privacy officer 
     or civil liberties officer described in subsection (a) or (b) 
     shall--
       ``(1) report directly to the head of the department, 
     agency, or element concerned; and

[[Page 20669]]

       ``(2) coordinate their activities with the Inspector 
     General of such department, agency, or element to avoid 
     duplication of effort.
       ``(d) Agency Cooperation.--The head of each department, 
     agency, or element shall ensure that each privacy officer and 
     civil liberties officer--
       ``(1) has the information, material, and resources 
     necessary to fulfill the functions of such officer;
       ``(2) is advised of proposed policy changes;
       ``(3) is consulted by decision makers; and
       ``(4) is given access to material and personnel the officer 
     determines to be necessary to carry out the functions of such 
     officer.
       ``(e) Reprisal for Making Complaint.--No action 
     constituting a reprisal, or threat of reprisal, for making a 
     complaint or for disclosing information to a privacy officer 
     or civil liberties officer described in subsection (a) or 
     (b), or to the Privacy and Civil Liberties Oversight Board, 
     that indicates a possible violation of privacy protections or 
     civil liberties in the administration of the programs and 
     operations of the Federal Government relating to efforts to 
     protect the Nation from terrorism shall be taken by any 
     Federal employee in a position to take such action, unless 
     the complaint was made or the information was disclosed with 
     the knowledge that it was false or with willful disregard for 
     its truth or falsity.
       ``(f) Periodic Reports.--
       ``(1) In general.--The privacy officers and civil liberties 
     officers of each department, agency, or element referred to 
     or described in subsection (a) or (b) shall periodically, but 
     not less than quarterly, submit a report on the activities of 
     such officers--
       ``(A)(i) to the appropriate committees of Congress, 
     including the Committee on the Judiciary of the Senate, the 
     Committee on the Judiciary of the House of Representatives, 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate, the Committee on Oversight and Government 
     Reform of the House of Representatives, the Select Committee 
     on Intelligence of the Senate, and the Permanent Select 
     Committee on Intelligence of the House of Representatives;
       ``(ii) to the head of such department, agency, or element; 
     and
       ``(iii) to the Privacy and Civil Liberties Oversight Board; 
     and
       ``(B) which shall be in unclassified form to the greatest 
     extent possible, with a classified annex where necessary.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include information on the discharge of each of the 
     functions of the officer concerned, including--
       ``(A) information on the number and types of reviews 
     undertaken;
       ``(B) the type of advice provided and the response given to 
     such advice;
       ``(C) the number and nature of the complaints received by 
     the department, agency, or element concerned for alleged 
     violations; and
       ``(D) a summary of the disposition of such complaints, the 
     reviews and inquiries conducted, and the impact of the 
     activities of such officer.
       ``(g) Informing the Public.--Each privacy officer and civil 
     liberties officer shall--
       ``(1) make the reports of such officer, including reports 
     to Congress, available to the public to the greatest extent 
     that is consistent with the protection of classified 
     information and applicable law; and
       ``(2) otherwise inform the public of the activities of such 
     officer, as appropriate and in a manner consistent with the 
     protection of classified information and applicable law.
       ``(h) Savings Clause.--Nothing in this section shall be 
     construed to limit or otherwise supplant any other 
     authorities or responsibilities provided by law to privacy 
     officers or civil liberties officers.''.
       (b) Clerical Amendment.--The table of contents for the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458) is amended by striking the item relating 
     to section 1062 and inserting the following new item:

``Sec. 1062. Privacy and civil liberties officers.''.

     SEC. 804. FEDERAL AGENCY DATA MINING REPORTING ACT OF 2007.

       (a) Short Title.--This section may be cited as the 
     ``Federal Agency Data Mining Reporting Act of 2007''.
       (b) Definitions.--In this section:
       (1) Data mining.--The term ``data mining'' means a program 
     involving pattern-based queries, searches, or other analyses 
     of 1 or more electronic databases, where--
       (A) a department or agency of the Federal Government, or a 
     non-Federal entity acting on behalf of the Federal 
     Government, is conducting the queries, searches, or other 
     analyses to discover or locate a predictive pattern or 
     anomaly indicative of terrorist or criminal activity on the 
     part of any individual or individuals;
       (B) the queries, searches, or other analyses are not 
     subject-based and do not use personal identifiers of a 
     specific individual, or inputs associated with a specific 
     individual or group of individuals, to retrieve information 
     from the database or databases; and
       (C) the purpose of the queries, searches, or other analyses 
     is not solely--
       (i) the detection of fraud, waste, or abuse in a Government 
     agency or program; or
       (ii) the security of a Government computer system.
       (2) Database.--The term ``database'' does not include 
     telephone directories, news reporting, information publicly 
     available to any member of the public without payment of a 
     fee, or databases of judicial and administrative opinions or 
     other legal research sources.
       (c) Reports on Data Mining Activities by Federal 
     Agencies.--
       (1) Requirement for report.--The head of each department or 
     agency of the Federal Government that is engaged in any 
     activity to use or develop data mining shall submit a report 
     to Congress on all such activities of the department or 
     agency under the jurisdiction of that official. The report 
     shall be produced in coordination with the privacy officer of 
     that department or agency, if applicable, and shall be made 
     available to the public, except for an annex described in 
     subparagraph (C).
       (2) Content of report.--Each report submitted under 
     subparagraph (A) shall include, for each activity to use or 
     develop data mining, the following information:
       (A) A thorough description of the data mining activity, its 
     goals, and, where appropriate, the target dates for the 
     deployment of the data mining activity.
       (B) A thorough description of the data mining technology 
     that is being used or will be used, including the basis for 
     determining whether a particular pattern or anomaly is 
     indicative of terrorist or criminal activity.
       (C) A thorough description of the data sources that are 
     being or will be used.
       (D) An assessment of the efficacy or likely efficacy of the 
     data mining activity in providing accurate information 
     consistent with and valuable to the stated goals and plans 
     for the use or development of the data mining activity.
       (E) An assessment of the impact or likely impact of the 
     implementation of the data mining activity on the privacy and 
     civil liberties of individuals, including a thorough 
     description of the actions that are being taken or will be 
     taken with regard to the property, privacy, or other rights 
     or privileges of any individual or individuals as a result of 
     the implementation of the data mining activity.
       (F) A list and analysis of the laws and regulations that 
     govern the information being or to be collected, reviewed, 
     gathered, analyzed, or used in conjunction with the data 
     mining activity, to the extent applicable in the context of 
     the data mining activity.
       (G) A thorough discussion of the policies, procedures, and 
     guidelines that are in place or that are to be developed and 
     applied in the use of such data mining activity in order to--
       (i) protect the privacy and due process rights of 
     individuals, such as redress procedures; and
       (ii) ensure that only accurate and complete information is 
     collected, reviewed, gathered, analyzed, or used, and guard 
     against any harmful consequences of potential inaccuracies.
       (3) Annex.--
       (A) In general.--A report under subparagraph (A) shall 
     include in an annex any necessary--
       (i) classified information;
       (ii) law enforcement sensitive information;
       (iii) proprietary business information; or
       (iv) trade secrets (as that term is defined in section 1839 
     of title 18, United States Code).
       (B) Availability.--Any annex described in clause (i)--
       (i) shall be available, as appropriate, and consistent with 
     the National Security Act of 1947 (50 U.S.C. 401 et seq.), to 
     the Committee on Homeland Security and Governmental Affairs, 
     the Committee on the Judiciary, the Select Committee on 
     Intelligence, the Committee on Appropriations, and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Homeland Security, the Committee 
     on the Judiciary, the Permanent Select Committee on 
     Intelligence, the Committee on Appropriations, and the 
     Committee on Financial Services of the House of 
     Representatives; and
       (ii) shall not be made available to the public.
       (4) Time for report.--Each report required under 
     subparagraph (A) shall be--
       (A) submitted not later than 180 days after the date of 
     enactment of this Act; and
       (B) updated not less frequently than annually thereafter, 
     to include any activity to use or develop data mining engaged 
     in after the date of the prior report submitted under 
     subparagraph (A).

                 TITLE IX--PRIVATE SECTOR PREPAREDNESS

     SEC. 901. PRIVATE SECTOR PREPAREDNESS.

       (a) In General.--Title V of the Homeland Security Act of 
     2002 (6 U.S.C. 311 et seq.), as amended by section 409, is 
     further amended by adding at the end the following:

     ``SEC. 523. GUIDANCE AND RECOMMENDATIONS.

       ``(a) In General.--Consistent with their responsibilities 
     and authorities under law, as of the day before the date of 
     the enactment of this section, the Administrator and the 
     Assistant Secretary for Infrastructure Protection, in 
     consultation with the private sector, may develop guidance or 
     recommendations and identify best practices to assist or 
     foster action by the private sector in--
       ``(1) identifying potential hazards and assessing risks and 
     impacts;
       ``(2) mitigating the impact of a wide variety of hazards, 
     including weapons of mass destruction;
       ``(3) managing necessary emergency preparedness and 
     response resources;
       ``(4) developing mutual aid agreements;
       ``(5) developing and maintaining emergency preparedness and 
     response plans, and associated operational procedures;
       ``(6) developing and conducting training and exercises to 
     support and evaluate emergency preparedness and response 
     plans and operational procedures;
       ``(7) developing and conducting training programs for 
     security guards to implement emergency preparedness and 
     response plans and operations procedures; and

[[Page 20670]]

       ``(8) developing procedures to respond to requests for 
     information from the media or the public.
       ``(b) Issuance and Promotion.--Any guidance or 
     recommendations developed or best practices identified under 
     subsection (a) shall be--
       ``(1) issued through the Administrator; and
       ``(2) promoted by the Secretary to the private sector.
       ``(c) Small Business Concerns.--In developing guidance or 
     recommendations or identifying best practices under 
     subsection (a), the Administrator and the Assistant Secretary 
     for Infrastructure Protection shall take into consideration 
     small business concerns (under the meaning given that term in 
     section 3 of the Small Business Act (15 U.S.C. 632)), 
     including any need for separate guidance or recommendations 
     or best practices, as necessary and appropriate.
       ``(d) Rule of Construction.--Nothing in this section may be 
     construed to supersede any requirement established under any 
     other provision of law.

     ``SEC. 524. VOLUNTARY PRIVATE SECTOR PREPAREDNESS 
                   ACCREDITATION AND CERTIFICATION PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary, acting through the 
     officer designated under paragraph (2), shall establish and 
     implement the voluntary private sector preparedness 
     accreditation and certification program in accordance with 
     this section.
       ``(2) Designation of officer.--The Secretary shall 
     designate an officer responsible for the accreditation and 
     certification program under this section. Such officer 
     (hereinafter referred to in this section as the `designated 
     officer') shall be one of the following:
       ``(A) The Administrator, based on consideration of--
       ``(i) the expertise of the Administrator in emergency 
     management and preparedness in the United States; and
       ``(ii) the responsibilities of the Administrator as the 
     principal advisor to the President for all matters relating 
     to emergency management in the United States.
       ``(B) The Assistant Secretary for Infrastructure 
     Protection, based on consideration of the expertise of the 
     Assistant Secretary in, and responsibilities for--
       ``(i) protection of critical infrastructure;
       ``(ii) risk assessment methodologies; and
       ``(iii) interacting with the private sector on the issues 
     described in clauses (i) and (ii).
       ``(C) The Under Secretary for Science and Technology, based 
     on consideration of the expertise of the Under Secretary in, 
     and responsibilities associated with, standards.
       ``(3) Coordination.--In carrying out the accreditation and 
     certification program under this section, the designated 
     officer shall coordinate with--
       ``(A) the other officers of the Department referred to in 
     paragraph (2), using the expertise and responsibilities of 
     such officers; and
       ``(B) the Special Assistant to the Secretary for the 
     Private Sector, based on consideration of the expertise of 
     the Special Assistant in, and responsibilities for, 
     interacting with the private sector.
       ``(b) Voluntary Private Sector Preparedness Standards; 
     Voluntary Accreditation and Certification Program for the 
     Private Sector.--
       ``(1) Accreditation and certification program.--Not later 
     than 210 days after the date of enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     designated officer shall--
       ``(A) begin supporting the development and updating, as 
     necessary, of voluntary preparedness standards through 
     appropriate organizations that coordinate or facilitate the 
     development and use of voluntary consensus standards and 
     voluntary consensus standards development organizations; and
       ``(B) in consultation with representatives of appropriate 
     organizations that coordinate or facilitate the development 
     and use of voluntary consensus standards, appropriate 
     voluntary consensus standards development organizations, each 
     private sector advisory council created under section 
     102(f)(4), appropriate representatives of State and local 
     governments, including emergency management officials, and 
     appropriate private sector advisory groups, such as sector 
     coordinating councils and information sharing and analysis 
     centers--
       ``(i) develop and promote a program to certify the 
     preparedness of private sector entities that voluntarily 
     choose to seek certification under the program; and
       ``(ii) implement the program under this subsection through 
     any entity with which the designated officer enters into an 
     agreement under paragraph (3)(A), which shall accredit third 
     parties to carry out the certification process under this 
     section.
       ``(2) Program elements.--
       ``(A) In general.--
       ``(i) Program.--The program developed and implemented under 
     this subsection shall assess whether a private sector entity 
     complies with voluntary preparedness standards.
       ``(ii) Guidelines.--In developing the program under this 
     subsection, the designated officer shall develop guidelines 
     for the accreditation and certification processes established 
     under this subsection.
       ``(B) Standards.--The designated officer, in consultation 
     with representatives of appropriate organizations that 
     coordinate or facilitate the development and use of voluntary 
     consensus standards, representatives of appropriate voluntary 
     consensus standards development organizations, each private 
     sector advisory council created under section 102(f)(4), 
     appropriate representatives of State and local governments, 
     including emergency management officials, and appropriate 
     private sector advisory groups such as sector coordinating 
     councils and information sharing and analysis centers--
       ``(i) shall adopt one or more appropriate voluntary 
     preparedness standards that promote preparedness, which may 
     be tailored to address the unique nature of various sectors 
     within the private sector, as necessary and appropriate, that 
     shall be used in the accreditation and certification program 
     under this subsection; and
       ``(ii) after the adoption of one or more standards under 
     clause (i), may adopt additional voluntary preparedness 
     standards or modify or discontinue the use of voluntary 
     preparedness standards for the accreditation and 
     certification program, as necessary and appropriate to 
     promote preparedness.
       ``(C) Submission of recommendations.--In adopting one or 
     more standards under subparagraph (B), the designated officer 
     may receive recommendations from any entity described in that 
     subparagraph relating to appropriate voluntary preparedness 
     standards, including appropriate sector specific standards, 
     for adoption in the program.
       ``(D) Small business concerns.--The designated officer and 
     any entity with which the designated officer enters into an 
     agreement under paragraph (3)(A) shall establish separate 
     classifications and methods of certification for small 
     business concerns (under the meaning given that term in 
     section 3 of the Small Business Act (15 U.S.C. 632)) for the 
     program under this subsection.
       ``(E) Considerations.--In developing and implementing the 
     program under this subsection, the designated officer shall--
       ``(i) consider the unique nature of various sectors within 
     the private sector, including preparedness standards, 
     business continuity standards, or best practices, 
     established--

       ``(I) under any other provision of Federal law; or
       ``(II) by any sector-specific agency, as defined under 
     Homeland Security Presidential Directive-7; and

       ``(ii) coordinate the program, as appropriate, with--

       ``(I) other Department private sector related programs; and
       ``(II) preparedness and business continuity programs in 
     other Federal agencies.

       ``(3) Accreditation and certification processes.--
       ``(A) Agreement.--
       ``(i) In general.--Not later than 210 days after the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the designated officer shall enter 
     into one or more agreements with a highly qualified 
     nongovernmental entity with experience or expertise in 
     coordinating and facilitating the development and use of 
     voluntary consensus standards and in managing or implementing 
     accreditation and certification programs for voluntary 
     consensus standards, or a similarly qualified private sector 
     entity, to carry out accreditations and oversee the 
     certification process under this subsection. An entity 
     entering into an agreement with the designated officer under 
     this clause (hereinafter referred to in this section as a 
     `selected entity') shall not perform certifications under 
     this subsection.
       ``(ii) Contents.--A selected entity shall manage the 
     accreditation process and oversee the certification process 
     in accordance with the program established under this 
     subsection and accredit qualified third parties to carry out 
     the certification program established under this subsection.
       ``(B) Procedures and requirements for accreditation and 
     certification.--
       ``(i) In general.--Any selected entity shall collaborate to 
     develop procedures and requirements for the accreditation and 
     certification processes under this subsection, in accordance 
     with the program established under this subsection and 
     guidelines developed under paragraph (2)(A)(ii).
       ``(ii) Contents and use.--The procedures and requirements 
     developed under clause (i) shall--

       ``(I) ensure reasonable uniformity in any accreditation and 
     certification processes if there is more than one selected 
     entity; and
       ``(II) be used by any selected entity in conducting 
     accreditations and overseeing the certification process under 
     this subsection.

       ``(iii) Disagreement.--Any disagreement among selected 
     entities in developing procedures under clause (i) shall be 
     resolved by the designated officer.
       ``(C) Designation.--A selected entity may accredit any 
     qualified third party to carry out the certification process 
     under this subsection.
       ``(D) Disadvantaged business involvement.--In accrediting 
     qualified third parties to carry out the certification 
     process under this subsection, a selected entity shall 
     ensure, to the extent practicable, that the third parties 
     include qualified small, minority, women-owned, or 
     disadvantaged business concerns when appropriate. The term 
     `disadvantaged business concern' means a small business that 
     is owned and controlled by socially and economically 
     disadvantaged individuals, as defined in section 124 of title 
     13, United States Code of Federal Regulations.
       ``(E) Treatment of other certifications.--At the request of 
     any entity seeking certification, any selected entity may 
     consider, as appropriate, other relevant certifications 
     acquired

[[Page 20671]]

     by the entity seeking certification. If the selected entity 
     determines that such other certifications are sufficient to 
     meet the certification requirement or aspects of the 
     certification requirement under this section, the selected 
     entity may give credit to the entity seeking certification, 
     as appropriate, to avoid unnecessarily duplicative 
     certification requirements.
       ``(F) Third parties.--To be accredited under subparagraph 
     (C), a third party shall--
       ``(i) demonstrate that the third party has the ability to 
     certify private sector entities in accordance with the 
     procedures and requirements developed under subparagraph (B);
       ``(ii) agree to perform certifications in accordance with 
     such procedures and requirements;
       ``(iii) agree not to have any beneficial interest in or any 
     direct or indirect control over--

       ``(I) a private sector entity for which that third party 
     conducts a certification under this subsection; or
       ``(II) any organization that provides preparedness 
     consulting services to private sector entities;

       ``(iv) agree not to have any other conflict of interest 
     with respect to any private sector entity for which that 
     third party conducts a certification under this subsection;
       ``(v) maintain liability insurance coverage at policy 
     limits in accordance with the requirements developed under 
     subparagraph (B); and
       ``(vi) enter into an agreement with the selected entity 
     accrediting that third party to protect any proprietary 
     information of a private sector entity obtained under this 
     subsection.
       ``(G) Monitoring.--
       ``(i) In general.--The designated officer and any selected 
     entity shall regularly monitor and inspect the operations of 
     any third party conducting certifications under this 
     subsection to ensure that the third party is complying with 
     the procedures and requirements established under 
     subparagraph (B) and all other applicable requirements.
       ``(ii) Revocation.--If the designated officer or any 
     selected entity determines that a third party is not meeting 
     the procedures or requirements established under subparagraph 
     (B), the selected entity shall--

       ``(I) revoke the accreditation of that third party to 
     conduct certifications under this subsection; and
       ``(II) review any certification conducted by that third 
     party, as necessary and appropriate.

       ``(4) Annual review.--
       ``(A) In general.--The designated officer, in consultation 
     with representatives of appropriate organizations that 
     coordinate or facilitate the development and use of voluntary 
     consensus standards, appropriate voluntary consensus 
     standards development organizations, appropriate 
     representatives of State and local governments, including 
     emergency management officials, and each private sector 
     advisory council created under section 102(f)(4), shall 
     annually review the voluntary accreditation and certification 
     program established under this subsection to ensure the 
     effectiveness of such program (including the operations and 
     management of such program by any selected entity and the 
     selected entity's inclusion of qualified disadvantaged 
     business concerns under paragraph (3)(D)) and make 
     improvements and adjustments to the program as necessary and 
     appropriate.
       ``(B) Review of standards.--Each review under subparagraph 
     (A) shall include an assessment of the voluntary preparedness 
     standard or standards used in the program under this 
     subsection.
       ``(5) Voluntary participation.--Certification under this 
     subsection shall be voluntary for any private sector entity.
       ``(6) Public listing.--The designated officer shall 
     maintain and make public a listing of any private sector 
     entity certified as being in compliance with the program 
     established under this subsection, if that private sector 
     entity consents to such listing.
       ``(c) Rule of Construction.--Nothing in this section may be 
     construed as--
       ``(1) a requirement to replace any preparedness, emergency 
     response, or business continuity standards, requirements, or 
     best practices established--
       ``(A) under any other provision of federal law; or
       ``(B) by any sector-specific agency, as those agencies are 
     defined under Homeland Security Presidential Directive-7; or
       ``(2) exempting any private sector entity seeking 
     certification or meeting certification requirements under 
     subsection (b) from compliance with all applicable statutes, 
     regulations, directives, policies, and industry codes of 
     practice.''.
       (b) Report to Congress.--Not later than 210 days after the 
     date of enactment of this Act, the Secretary shall submit to 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate and the Committee on Homeland Security and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a report detailing--
       (1) any action taken to implement section 524(b) of the 
     Homeland Security Act of 2002, as added by subsection (a), 
     including a discussion of--
       (A) the separate methods of classification and 
     certification for small business concerns (under the meaning 
     given that term in section 3 of the Small Business Act (15 
     U.S.C. 632)) as compared to other private sector entities; 
     and
       (B) whether the separate classifications and methods of 
     certification for small business concerns are likely to help 
     to ensure that such measures are not overly burdensome and 
     are adequate to meet the voluntary preparedness standard or 
     standards adopted by the program under section 524(b) of the 
     Homeland Security Act of 2002, as added by subsection (a); 
     and
       (2) the status, as of the date of that report, of the 
     implementation of that subsection.
       (c) Deadline for Designation of Officer.--The Secretary of 
     Homeland Security shall designate the officer as described in 
     section 524 of the Homeland Security Act of 2002, as added by 
     subsection (a), by not later than 30 days after the date of 
     the enactment of this Act.
       (d) Definition.--Section 2 of the Homeland Security Act of 
     2002 (6 U.S.C. 101) is amended by adding at the end the 
     following:
       ``(18) The term `voluntary preparedness standards' means a 
     common set of criteria for preparedness, disaster management, 
     emergency management, and business continuity programs, such 
     as the American National Standards Institute's National Fire 
     Protection Association Standard on Disaster/Emergency 
     Management and Business Continuity Programs (ANSI/NFPA 
     1600).''.
       (e) Clerical Amendments.--The table of contents in section 
     1(b) of such Act is further amended by adding at the end the 
     following:

``Sec. 523. Guidance and recommendations.
``Sec. 524. Voluntary private sector preparedness accreditation and 
              certification program.''.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section and the amendments made by this section.

     SEC. 902. RESPONSIBILITIES OF THE PRIVATE SECTOR OFFICE OF 
                   THE DEPARTMENT.

       (a) In General.--Section 102(f) of the Homeland Security 
     Act of 2002 (6 U.S.C. 112(f)) is amended--
       (1) by redesignating paragraphs (8) through (10) as 
     paragraphs (9) through (11), respectively; and
       (2) by inserting after paragraph (7) the following:
       ``(8) providing information to the private sector regarding 
     voluntary preparedness standards and the business 
     justification for preparedness and promoting to the private 
     sector the adoption of voluntary preparedness standards;''.
       (b) Private Sector Advisory Councils.--Section 102(f)(4) of 
     the Homeland Security Act of 2002 (6 U.S.C. 112(f)(4)) is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by inserting ``and'' after the 
     semicolon at the end; and
       (3) by adding at the end the following:
       ``(C) advise the Secretary on private sector preparedness 
     issues, including effective methods for--
       ``(i) promoting voluntary preparedness standards to the 
     private sector; and
       ``(ii) assisting the private sector in adopting voluntary 
     preparedness standards;''.

          TITLE X--IMPROVING CRITICAL INFRASTRUCTURE SECURITY

     SEC. 1001. NATIONAL ASSET DATABASE.

       (a) In General.--Subtitle A of title II of the Homeland 
     Security Act of 2002, as amended by title V, is further 
     amended by adding at the end the following new section:

     ``SEC. 210E. NATIONAL ASSET DATABASE.

       ``(a) Establishment.--
       ``(1) National asset database.--The Secretary shall 
     establish and maintain a national database of each system or 
     asset that--
       ``(A) the Secretary, in consultation with appropriate 
     homeland security officials of the States, determines to be 
     vital and the loss, interruption, incapacity, or destruction 
     of which would have a negative or debilitating effect on the 
     economic security, public health, or safety of the United 
     States, any State, or any local government; or
       ``(B) the Secretary determines is appropriate for inclusion 
     in the database.
       ``(2) Prioritized critical infrastructure list.--In 
     accordance with Homeland Security Presidential Directive-7, 
     as in effect on January 1, 2007, the Secretary shall 
     establish and maintain a single classified prioritized list 
     of systems and assets included in the database under 
     paragraph (1) that the Secretary determines would, if 
     destroyed or disrupted, cause national or regional 
     catastrophic effects.
       ``(b) Use of Database.--The Secretary shall use the 
     database established under subsection (a)(1) in the 
     development and implementation of Department plans and 
     programs as appropriate.
       ``(c) Maintenance of Database.--
       ``(1) In general.--The Secretary shall maintain and 
     annually update the database established under subsection 
     (a)(1) and the list established under subsection (a)(2), 
     including--
       ``(A) establishing data collection guidelines and providing 
     such guidelines to the appropriate homeland security official 
     of each State;
       ``(B) regularly reviewing the guidelines established under 
     subparagraph (A), including by consulting with the 
     appropriate homeland security officials of States, to solicit 
     feedback about the guidelines, as appropriate;
       ``(C) after providing the homeland security official of a 
     State with the guidelines under subparagraph (A), allowing 
     the official a reasonable amount of time to submit to the 
     Secretary any data submissions recommended by the official 
     for inclusion in the database established under subsection 
     (a)(1);
       ``(D) examining the contents and identifying any 
     submissions made by such an official that are described 
     incorrectly or that do not meet the guidelines established 
     under subparagraph (A); and
       ``(E) providing to the appropriate homeland security 
     official of each relevant State a list of

[[Page 20672]]

     submissions identified under subparagraph (D) for review and 
     possible correction before the Secretary finalizes the 
     decision of which submissions will be included in the 
     database established under subsection (a)(1).
       ``(2) Organization of information in database.--The 
     Secretary shall organize the contents of the database 
     established under subsection (a)(1) and the list established 
     under subsection (a)(2) as the Secretary determines is 
     appropriate. Any organizational structure of such contents 
     shall include the categorization of the contents--
       ``(A) according to the sectors listed in National 
     Infrastructure Protection Plan developed pursuant to Homeland 
     Security Presidential Directive-7; and
       ``(B) by the State and county of their location.
       ``(3) Private sector integration.--The Secretary shall 
     identify and evaluate methods, including the Department's 
     Protected Critical Infrastructure Information Program, to 
     acquire relevant private sector information for the purpose 
     of using that information to generate any database or list, 
     including the database established under subsection (a)(1) 
     and the list established under subsection (a)(2).
       ``(4) Retention of classification.--The classification of 
     information required to be provided to Congress, the 
     Department, or any other department or agency under this 
     section by a sector-specific agency, including the assignment 
     of a level of classification of such information, shall be 
     binding on Congress, the Department, and that other Federal 
     agency.
       ``(d) Reports.--
       ``(1) Report required.--Not later than 180 days after the 
     date of the enactment of the Implementing Recommendations of 
     the 9/11 Commission Act of 2007, and annually thereafter, the 
     Secretary shall submit to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives a report on 
     the database established under subsection (a)(1) and the list 
     established under subsection (a)(2).
       ``(2) Contents of report.--Each such report shall include 
     the following:
       ``(A) The name, location, and sector classification of each 
     of the systems and assets on the list established under 
     subsection (a)(2).
       ``(B) The name, location, and sector classification of each 
     of the systems and assets on such list that are determined by 
     the Secretary to be most at risk to terrorism.
       ``(C) Any significant challenges in compiling the list of 
     the systems and assets included on such list or in the 
     database established under subsection (a)(1).
       ``(D) Any significant changes from the preceding report in 
     the systems and assets included on such list or in such 
     database.
       ``(E) If appropriate, the extent to which such database and 
     such list have been used, individually or jointly, for 
     allocating funds by the Federal Government to prevent, 
     reduce, mitigate, or respond to acts of terrorism.
       ``(F) The amount of coordination between the Department and 
     the private sector, through any entity of the Department that 
     meets with representatives of private sector industries for 
     purposes of such coordination, for the purpose of ensuring 
     the accuracy of such database and such list.
       ``(G) Any other information the Secretary deems relevant.
       ``(3) Classified information.--The report shall be 
     submitted in unclassified form but may contain a classified 
     annex.
       ``(e) Inspector General Study.--By not later than two years 
     after the date of enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     Inspector General of the Department shall conduct a study of 
     the implementation of this section.
       ``(f) National Infrastructure Protection Consortium.--The 
     Secretary may establish a consortium to be known as the 
     `National Infrastructure Protection Consortium'. The 
     Consortium may advise the Secretary on the best way to 
     identify, generate, organize, and maintain any database or 
     list of systems and assets established by the Secretary, 
     including the database established under subsection (a)(1) 
     and the list established under subsection (a)(2). If the 
     Secretary establishes the National Infrastructure Protection 
     Consortium, the Consortium may--
       ``(1) be composed of national laboratories, Federal 
     agencies, State and local homeland security organizations, 
     academic institutions, or national Centers of Excellence that 
     have demonstrated experience working with and identifying 
     critical infrastructure and key resources; and
       ``(2) provide input to the Secretary on any request 
     pertaining to the contents of such database or such list.''.
       (b) Deadlines for Implementation and Notification of 
     Congress.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit the first report required under section 210E(d) 
     of the Homeland Security Act of 2002, as added by subsection 
     (a).
       (c) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is further amended by inserting after the 
     item relating to section 210D the following:

``Sec. 210E. National Asset Database.''.

     SEC. 1002. RISK ASSESSMENTS AND REPORT.

       (a) Risk Assessments.--Section 201(d) of the Homeland 
     Security Act of 2002 (6 U.S.C. 121(d)) is further amended by 
     adding at the end the following new paragraph:
       ``(25) To prepare and submit to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Homeland Security in the House of 
     Representatives, and to other appropriate congressional 
     committees having jurisdiction over the critical 
     infrastructure or key resources, for each sector identified 
     in the National Infrastructure Protection Plan, a report on 
     the comprehensive assessments carried out by the Secretary of 
     the critical infrastructure and key resources of the United 
     States, evaluating threat, vulnerability, and consequence, as 
     required under this subsection. Each such report--
       ``(A) shall contain, if applicable, actions or 
     countermeasures recommended or taken by the Secretary or the 
     head of another Federal agency to address issues identified 
     in the assessments;
       ``(B) shall be required for fiscal year 2007 and each 
     subsequent fiscal year and shall be submitted not later than 
     35 days after the last day of the fiscal year covered by the 
     report; and
       ``(C) may be classified.''.
       (b) Report on Industry Preparedness.--Not later than 6 
     months after the last day of fiscal year 2007 and each 
     subsequent fiscal year, the Secretary of Homeland Security, 
     in cooperation with the Secretary of Commerce, the Secretary 
     of Transportation, the Secretary of Defense, and the 
     Secretary of Energy, shall submit to the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Financial Services and the Committee on 
     Homeland Security of the House of Representatives a report 
     that details the actions taken by the Federal Government to 
     ensure, in accordance with subsections (a) and (c) of section 
     101 of the Defense Production Act of 1950 (50 U.S.C. App. 
     2071), the preparedness of industry to reduce interruption of 
     critical infrastructure and key resource operations during an 
     act of terrorism, natural catastrophe, or other similar 
     national emergency.

     SEC. 1003. SENSE OF CONGRESS REGARDING THE INCLUSION OF 
                   LEVEES IN THE NATIONAL INFRASTRUCTURE 
                   PROTECTION PLAN.

       It is the sense of Congress that the Secretary should 
     ensure that levees are included in one of the critical 
     infrastructure and key resources sectors identified in the 
     National Infrastructure Protection Plan.

    TITLE XI--ENHANCED DEFENSES AGAINST WEAPONS OF MASS DESTRUCTION

     SEC. 1101. NATIONAL BIOSURVEILLANCE INTEGRATION CENTER.

       (a) In General.--Title III of the Homeland Security Act of 
     2002 (6 U.S.C. et seq.) is amended by adding at the end the 
     following:

     ``SEC. 316. NATIONAL BIOSURVEILLANCE INTEGRATION CENTER.

       ``(a) Establishment.--The Secretary shall establish, 
     operate, and maintain a National Biosurveillance Integration 
     Center (referred to in this section as the `NBIC'), which 
     shall be headed by a Directing Officer, under an office or 
     directorate of the Department that is in existence as of the 
     date of the enactment of this section.
       ``(b) Primary Mission.--The primary mission of the NBIC is 
     to--
       ``(1) enhance the capability of the Federal Government to--
       ``(A) rapidly identify, characterize, localize, and track a 
     biological event of national concern by integrating and 
     analyzing data relating to human health, animal, plant, food, 
     and environmental monitoring systems (both national and 
     international); and
       ``(B) disseminate alerts and other information to Member 
     Agencies and, in coordination with (and where possible 
     through) Member Agencies, to agencies of State, local, and 
     tribal governments, as appropriate, to enhance the ability of 
     such agencies to respond to a biological event of national 
     concern; and
       ``(2) oversee development and operation of the National 
     Biosurveillance Integration System.
       ``(c) Requirements.--The NBIC shall detect, as early as 
     possible, a biological event of national concern that 
     presents a risk to the United States or the infrastructure or 
     key assets of the United States, including by--
       ``(1) consolidating data from all relevant surveillance 
     systems maintained by Member Agencies to detect biological 
     events of national concern across human, animal, and plant 
     species;
       ``(2) seeking private sources of surveillance, both foreign 
     and domestic, when such sources would enhance coverage of 
     critical surveillance gaps;
       ``(3) using an information technology system that uses the 
     best available statistical and other analytical tools to 
     identify and characterize biological events of national 
     concern in as close to real-time as is practicable;
       ``(4) providing the infrastructure for such integration, 
     including information technology systems and space, and 
     support for personnel from Member Agencies with sufficient 
     expertise to enable analysis and interpretation of data;
       ``(5) working with Member Agencies to create information 
     technology systems that use the minimum amount of patient 
     data necessary and consider patient confidentiality and 
     privacy issues at all stages of development and apprise the 
     Privacy Officer of such efforts; and
       ``(6) alerting Member Agencies and, in coordination with 
     (and where possible through) Member Agencies, public health 
     agencies of State, local, and tribal governments regarding 
     any incident that could develop into a biological event of 
     national concern.
       ``(d) Responsibilities of the Directing Officer of the 
     NBIC.--
       ``(1) In general.--The Directing Officer of the NBIC 
     shall--

[[Page 20673]]

       ``(A) on an ongoing basis, monitor the availability and 
     appropriateness of surveillance systems used by the NBIC and 
     those systems that could enhance biological situational 
     awareness or the overall performance of the NBIC;
       ``(B) on an ongoing basis, review and seek to improve the 
     statistical and other analytical methods used by the NBIC;
       ``(C) receive and consider other relevant homeland security 
     information, as appropriate; and
       ``(D) provide technical assistance, as appropriate, to all 
     Federal, regional, State, local, and tribal government 
     entities and private sector entities that contribute data 
     relevant to the operation of the NBIC.
       ``(2) Assessments.--The Directing Officer of the NBIC 
     shall--
       ``(A) on an ongoing basis, evaluate available data for 
     evidence of a biological event of national concern; and
       ``(B) integrate homeland security information with NBIC 
     data to provide overall situational awareness and determine 
     whether a biological event of national concern has occurred.
       ``(3) Information sharing.--
       ``(A) In general.--The Directing Officer of the NBIC 
     shall--
       ``(i) establish a method of real-time communication with 
     the National Operations Center;
       ``(ii) in the event that a biological event of national 
     concern is detected, notify the Secretary and disseminate 
     results of NBIC assessments relating to that biological event 
     of national concern to appropriate Federal response entities 
     and, in coordination with relevant Member Agencies, regional, 
     State, local, and tribal governmental response entities in a 
     timely manner;
       ``(iii) provide any report on NBIC assessments to Member 
     Agencies and, in coordination with relevant Member Agencies, 
     any affected regional, State, local, or tribal government, 
     and any private sector entity considered appropriate that may 
     enhance the mission of such Member Agencies, governments, or 
     entities or the ability of the Nation to respond to 
     biological events of national concern; and
       ``(iv) share NBIC incident or situational awareness 
     reports, and other relevant information, consistent with the 
     information sharing environment established under section 
     1016 of the Intelligence Reform and Terrorism Prevention Act 
     of 2004 (6 U.S.C. 485) and any policies, guidelines, 
     procedures, instructions, or standards established under that 
     section.
       ``(B) Consultation.--The Directing Officer of the NBIC 
     shall implement the activities described in subparagraph (A) 
     consistent with the policies, guidelines, procedures, 
     instructions, or standards established under section 1016 of 
     the Intelligence Reform and Terrorism Prevention Act of 2004 
     (6 U.S.C. 485) and in consultation with the Director of 
     National Intelligence, the Under Secretary for Intelligence 
     and Analysis, and other offices or agencies of the Federal 
     Government, as appropriate.
       ``(e) Responsibilities of the NBIC Member Agencies.--
       ``(1) In general.--Each Member Agency shall--
       ``(A) use its best efforts to integrate biosurveillance 
     information into the NBIC, with the goal of promoting 
     information sharing between Federal, State, local, and tribal 
     governments to detect biological events of national concern;
       ``(B) provide timely information to assist the NBIC in 
     maintaining biological situational awareness for accurate 
     detection and response purposes;
       ``(C) enable the NBIC to receive and use biosurveillance 
     information from member agencies to carry out its 
     requirements under subsection (c);
       ``(D) connect the biosurveillance data systems of that 
     Member Agency to the NBIC data system under mutually agreed 
     protocols that are consistent with subsection (c)(5);
       ``(E) participate in the formation of strategy and policy 
     for the operation of the NBIC and its information sharing;
       ``(F) provide personnel to the NBIC under an interagency 
     personnel agreement and consider the qualifications of such 
     personnel necessary to provide human, animal, and 
     environmental data analysis and interpretation support to the 
     NBIC; and
       ``(G) retain responsibility for the surveillance and 
     intelligence systems of that department or agency, if 
     applicable.
       ``(f) Administrative Authorities.--
       ``(1) Hiring of experts.--The Directing Officer of the NBIC 
     shall hire individuals with the necessary expertise to 
     develop and operate the NBIC.
       ``(2) Detail of personnel.--Upon the request of the 
     Directing Officer of the NBIC, the head of any Federal 
     department or agency may detail, on a reimbursable basis, any 
     of the personnel of that department or agency to the 
     Department to assist the NBIC in carrying out this section.
       ``(g) NBIC Interagency Working Group.--The Directing 
     Officer of the NBIC shall--
       ``(1) establish an interagency working group to facilitate 
     interagency cooperation and to advise the Directing Officer 
     of the NBIC regarding recommendations to enhance the 
     biosurveillance capabilities of the Department; and
       ``(2) invite Member Agencies to serve on that working 
     group.
       ``(h) Relationship to Other Departments and Agencies.--The 
     authority of the Directing Officer of the NBIC under this 
     section shall not affect any authority or responsibility of 
     any other department or agency of the Federal Government with 
     respect to biosurveillance activities under any program 
     administered by that department or agency.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.
       ``(j) Definitions.--In this section:
       ``(1) The terms `biological agent' and `toxin' have the 
     meanings given those terms in section 178 of title 18, United 
     States Code.
       ``(2) The term `biological event of national concern' 
     means--
       ``(A) an act of terrorism involving a biological agent or 
     toxin; or
       ``(B) a naturally occurring outbreak of an infectious 
     disease that may result in a national epidemic.
       ``(3) The term `homeland security information' has the 
     meaning given that term in section 892.
       ``(4) The term `Member Agency' means any Federal department 
     or agency that, at the discretion of the head of that 
     department or agency, has entered a memorandum of 
     understanding regarding participation in the NBIC.
       ``(5) The term `Privacy Officer' means the Privacy Officer 
     appointed under section 222.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et 
     seq.) is amended by inserting after the item relating to 
     section 315 the following:

``Sec. 316. National Biosurveillance Integration Center.''.

       (c) Deadline for Implementation.--The National 
     Biosurveillance Integration Center under section 316 of the 
     Homeland Security Act, as added by subsection (a), shall be 
     fully operational by not later than September 30, 2008;
       (d) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Homeland Security of the House of Representatives an interim 
     report on the status of the operations at the National 
     Biosurviellance Integration Center that addresses the efforts 
     of the Center to integrate the surveillance efforts of 
     Federal, State, local, and tribal governments. When the 
     National Biosurveillance Integration Center is fully 
     operational, the Secretary shall submit to such committees a 
     final report on the status of such operations.

     SEC. 1102. BIOSURVEILLANCE EFFORTS.

       The Comptroller General of the United States shall submit 
     to Congress a report --
       (1) describing the state of Federal, State, local, and 
     tribal government biosurveillance efforts as of the date of 
     such report;
       (2) describing any duplication of effort at the Federal, 
     State, local, or tribal government level to create 
     biosurveillance systems; and
       (3) providing the recommendations of the Comptroller 
     General regarding--
       (A) the integration of biosurveillance systems;
       (B) the effective use of biosurveillance resources; and
       (C) the effective use of the expertise of Federal, State, 
     local, and tribal governments.

     SEC. 1103. INTERAGENCY COORDINATION TO ENHANCE DEFENSES 
                   AGAINST NUCLEAR AND RADIOLOGICAL WEAPONS OF 
                   MASS DESTRUCTION.

       (a) In General.--The Homeland Security Act of 2002 (6 
     U.S.C. 101 et seq.) is amended by inserting after section 
     1906, as redesignated by section 104, the following:

     ``SEC. 1907. JOINT ANNUAL INTERAGENCY REVIEW OF GLOBAL 
                   NUCLEAR DETECTION ARCHITECTURE.

       ``(a) Annual Review.--
       ``(1) In general.--The Secretary, the Attorney General, the 
     Secretary of State, the Secretary of Defense, the Secretary 
     of Energy, and the Director of National Intelligence shall 
     jointly ensure interagency coordination on the development 
     and implementation of the global nuclear detection 
     architecture by ensuring that, not less frequently than once 
     each year--
       ``(A) each relevant agency, office, or entity--
       ``(i) assesses its involvement, support, and participation 
     in the development, revision, and implementation of the 
     global nuclear detection architecture; and
       ``(ii) examines and evaluates components of the global 
     nuclear detection architecture (including associated 
     strategies and acquisition plans) relating to the operations 
     of that agency, office, or entity, to determine whether such 
     components incorporate and address current threat 
     assessments, scenarios, or intelligence analyses developed by 
     the Director of National Intelligence or other agencies 
     regarding threats relating to nuclear or radiological weapons 
     of mass destruction; and
       ``(B) each agency, office, or entity deploying or operating 
     any nuclear or radiological detection technology under the 
     global nuclear detection architecture--
       ``(i) evaluates the deployment and operation of nuclear or 
     radiological detection technologies under the global nuclear 
     detection architecture by that agency, office, or entity;
       ``(ii) identifies performance deficiencies and operational 
     or technical deficiencies in nuclear or radiological 
     detection technologies deployed under the global nuclear 
     detection architecture; and
       ``(iii) assesses the capacity of that agency, office, or 
     entity to implement the responsibilities of that agency, 
     office, or entity under the global nuclear detection 
     architecture.
       ``(2) Technology.--Not less frequently than once each year, 
     the Secretary shall examine and evaluate the development, 
     assessment, and acquisition of radiation detection 
     technologies deployed or implemented in support of the 
     domestic portion of the global nuclear detection 
     architecture.

[[Page 20674]]

       ``(b) Annual Report on Joint Interagency Review.--
       ``(1) In general.--Not later than March 31 of each year, 
     the Secretary, the Attorney General, the Secretary of State, 
     the Secretary of Defense, the Secretary of Energy, and the 
     Director of National Intelligence, shall jointly submit a 
     report regarding the implementation of this section and the 
     results of the reviews required under subsection (a) to--
       ``(A) the President;
       ``(B) the Committee on Appropriations, the Committee on 
     Armed Services, the Select Committee on Intelligence, and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate; and
       ``(C) the Committee on Appropriations, the Committee on 
     Armed Services, the Permanent Select Committee on 
     Intelligence, the Committee on Homeland Security, and the 
     Committee on Science and Technology of the House of 
     Representatives.
       ``(2) Form.--The annual report submitted under paragraph 
     (1) shall be submitted in unclassified form to the maximum 
     extent practicable, but may include a classified annex.
       ``(c) Definition.--In this section, the term `global 
     nuclear detection architecture' means the global nuclear 
     detection architecture developed under section 1902.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 note) 
     is amended by inserting after the item relating to section 
     1906, as added by section 104, the following:

``Sec. 1907. Joint annual interagency review of global nuclear 
              detection architecture.''.

     SEC. 1104. INTEGRATION OF DETECTION EQUIPMENT AND 
                   TECHNOLOGIES.

       (a) Responsibility of Secretary.--The Secretary of Homeland 
     Security shall have responsibility for ensuring that domestic 
     chemical, biological, radiological, and nuclear detection 
     equipment and technologies are integrated, as appropriate, 
     with other border security systems and detection 
     technologies.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     Congress that contains a plan to develop a departmental 
     technology assessment process to determine and certify the 
     technology readiness levels of chemical, biological, 
     radiological, and nuclear detection technologies before the 
     full deployment of such technologies within the United 
     States.

  TITLE XII--TRANSPORTATION SECURITY PLANNING AND INFORMATION SHARING

     SEC. 1201. DEFINITIONS.

       For purposes of this title, the following terms apply:
       (1) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.

     SEC. 1202. TRANSPORTATION SECURITY STRATEGIC PLANNING.

       (a) In General.--Section 114(t)(1)(B) of title 49, United 
     States Code, is amended to read as follows:
       ``(B) transportation modal security plans addressing 
     security risks, including threats, vulnerabilities, and 
     consequences, for aviation, railroad, ferry, highway, 
     maritime, pipeline, public transportation, over-the-road bus, 
     and other transportation infrastructure assets.''.
       (b) Contents of the National Strategy for Transportation 
     Security.--Section 114(t)(3) of such title is amended--
       (1) in subparagraph (B), by inserting ``, based on risk 
     assessments conducted or received by the Secretary of 
     Homeland Security (including assessments conducted under the 
     Implementing Recommendations of the 9/11 Commission Act of 
     2007'' after ``risk based priorities'';
       (2) in subparagraph (D)--
       (A) by striking ``and local'' and inserting ``local, and 
     tribal''; and
       (B) by striking ``private sector cooperation and 
     participation'' and inserting ``cooperation and participation 
     by private sector entities, including nonprofit employee 
     labor organizations,'';
       (3) in subparagraph (E)--
       (A) by striking ``response'' and inserting ``prevention, 
     response,''; and
       (B) by inserting ``and threatened and executed acts of 
     terrorism outside the United States to the extent such acts 
     affect United States transportation systems'' before the 
     period at the end;
       (4) in subparagraph (F), by adding at the end the 
     following: ``Transportation security research and development 
     projects shall be based, to the extent practicable, on such 
     prioritization. Nothing in the preceding sentence shall be 
     construed to require the termination of any research or 
     development project initiated by the Secretary of Homeland 
     Security or the Secretary of Transportation before the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007.''; and
       (5) by adding at the end the following:
       ``(G) A 3- and 10-year budget for Federal transportation 
     security programs that will achieve the priorities of the 
     National Strategy for Transportation Security.
       ``(H) Methods for linking the individual transportation 
     modal security plans and the programs contained therein, and 
     a plan for addressing the security needs of intermodal 
     transportation.
       ``(I) Transportation modal security plans described in 
     paragraph (1)(B), including operational recovery plans to 
     expedite, to the maximum extent practicable, the return to 
     operation of an adversely affected transportation system 
     following a major terrorist attack on that system or other 
     incident. These plans shall be coordinated with the 
     resumption of trade protocols required under section 202 of 
     the SAFE Port Act (6 U.S.C. 942) and the National Maritime 
     Transportation Security Plan required under section 70103(a) 
     of title 46.''.
       (c) Periodic Progress Reports.--Section 114(t)(4) of such 
     title is amended--
       (1) in subparagraph (C)--
       (A) in clause (i) by inserting ``, including the 
     transportation modal security plans'' before the period at 
     the end; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii) Content.--Each progress report submitted under this 
     subparagraph shall include, at a minimum, the following:

       ``(I) Recommendations for improving and implementing the 
     National Strategy for Transportation Security and the 
     transportation modal and intermodal security plans that the 
     Secretary of Homeland Security, in consultation with the 
     Secretary of Transportation, considers appropriate.
       ``(II) An accounting of all grants for transportation 
     security, including grants and contracts for research and 
     development, awarded by the Secretary of Homeland Security in 
     the most recent fiscal year and a description of how such 
     grants accomplished the goals of the National Strategy for 
     Transportation Security.
       ``(III) An accounting of all--

       ``(aa) funds requested in the President's budget submitted 
     pursuant to section 1105 of title 31 for the most recent 
     fiscal year for transportation security, by mode;
       ``(bb) personnel working on transportation security by 
     mode, including the number of contractors; and
       ``(cc) information on the turnover in the previous year 
     among senior staff of the Department of Homeland Security, 
     including component agencies, working on transportation 
     security issues. Such information shall include the number of 
     employees who have permanently left the office, agency, or 
     area in which they worked, and the amount of time that they 
     worked for the Department.
       ``(iii) Written explanation of transportation security 
     activities not delineated in the national strategy for 
     transportation security.--At the end of each fiscal year, the 
     Secretary of Homeland Security shall submit to the 
     appropriate congressional committees a written explanation of 
     any Federal transportation security activity that is 
     inconsistent with the National Strategy for Transportation 
     Security, including the amount of funds to be expended for 
     the activity and the number of personnel involved.''; and
       (2) by striking subparagraph (E) and inserting the 
     following:
       ``(E) Appropriate congressional committees defined.--In 
     this subsection, the term `appropriate congressional 
     committees' means the Committee on Transportation and 
     Infrastructure and the Committee on Homeland Security of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation, the Committee on Homeland 
     Security and Governmental Affairs, and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate.''.
       (d) Priority Status.--Section 114(t)(5)(B) of such title is 
     amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) by redesignating clause (iv) as clause (v); and
       (3) by inserting after clause (iii) the following:
       ``(iv) the transportation sector specific plan required 
     under Homeland Security Presidential Directive 7; and''.
       (e) Coordination and Plan Distribution.--Section 114(t) of 
     such title is amended by adding at the end the following:
       ``(6) Coordination.--In carrying out the responsibilities 
     under this section, the Secretary of Homeland Security, in 
     coordination with the Secretary of Transportation, shall 
     consult, as appropriate, with Federal, State, and local 
     agencies, tribal governments, private sector entities 
     (including nonprofit employee labor organizations), 
     institutions of higher learning, and other entities.
       ``(7) Plan distribution.--The Secretary of Homeland 
     Security shall make available and appropriately publicize an 
     unclassified version of the National Strategy for 
     Transportation Security, including its component 
     transportation modal security plans, to Federal, State, 
     regional, local and tribal authorities, transportation system 
     owners or operators, private sector stakeholders, including 
     nonprofit employee labor organizations representing 
     transportation employees, institutions of higher learning, 
     and other appropriate entities.''.

     SEC. 1203. TRANSPORTATION SECURITY INFORMATION SHARING.

       (a) In General.--Section 114 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(u) Transportation Security Information Sharing Plan.--
       ``(1) Definitions.--In this subsection:
       ``(A) Appropriate congressional committees.--The term 
     `appropriate congressional committees' has the meaning given 
     that term in subsection (t).
       ``(B) Plan.--The term `Plan' means the Transportation 
     Security Information Sharing Plan established under paragraph 
     (2).
       ``(C) Public and private stakeholders.--The term `public 
     and private stakeholders'

[[Page 20675]]

     means Federal, State, and local agencies, tribal governments, 
     and appropriate private entities, including nonprofit 
     employee labor organizations representing transportation 
     employees.
       ``(D) Secretary.--The term `Secretary' means the Secretary 
     of Homeland Security.
       ``(E) Transportation security information.--The term 
     `transportation security information' means information 
     relating to the risks to transportation modes, including 
     aviation, public transportation, railroad, ferry, highway, 
     maritime, pipeline, and over-the-road bus transportation, and 
     may include specific and general intelligence products, as 
     appropriate.
       ``(2) Establishment of plan.--The Secretary of Homeland 
     Security, in consultation with the program manager of the 
     information sharing environment established under section 
     1016 of the Intelligence Reform and Terrorism Prevention Act 
     of 2004 (6 U.S.C. 485), the Secretary of Transportation, and 
     public and private stakeholders, shall establish a 
     Transportation Security Information Sharing Plan. In 
     establishing the Plan, the Secretary shall gather input on 
     the development of the Plan from private and public 
     stakeholders and the program manager of the information 
     sharing environment established under section 1016 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 (6 
     U.S.C. 485).
       ``(3) Purpose of plan.--The Plan shall promote sharing of 
     transportation security information between the Department of 
     Homeland Security and public and private stakeholders.
       ``(4) Content of plan.--The Plan shall include--
       ``(A) a description of how intelligence analysts within the 
     Department of Homeland Security will coordinate their 
     activities within the Department and with other Federal, 
     State, and local agencies, and tribal governments, including 
     coordination with existing modal information sharing centers 
     and the center described in section 1410 of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007;
       ``(B) the establishment of a point of contact, which may be 
     a single point of contact within the Department of Homeland 
     Security, for each mode of transportation for the sharing of 
     transportation security information with public and private 
     stakeholders, including an explanation and justification to 
     the appropriate congressional committees if the point of 
     contact established pursuant to this subparagraph differs 
     from the agency within the Department that has the primary 
     authority, or has been delegated such authority by the 
     Secretary, to regulate the security of that transportation 
     mode;
       ``(C) a reasonable deadline by which the Plan will be 
     implemented; and
       ``(D) a description of resource needs for fulfilling the 
     Plan.
       ``(5) Coordination with information sharing .--The Plan 
     shall be--
       ``(A) implemented in coordination, as appropriate, with the 
     program manager for the information sharing environment 
     established under section 1016 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 485); and
       ``(B) consistent with the establishment of the information 
     sharing environment and any policies, guidelines, procedures, 
     instructions, or standards established by the President or 
     the program manager for the implementation and management of 
     the information sharing environment.
       ``(6) Reports to congress.--
       ``(A) In general.--Not later than 150 days after the date 
     of enactment of this subsection, and annually thereafter, the 
     Secretary shall submit to the appropriate congressional 
     committees, a report containing the Plan.
       ``(B) Annual report.--Not later than 1 year after the date 
     of enactment of this subsection, the Secretary shall submit 
     to the appropriate congressional committees a report on 
     updates to and the implementation of the Plan.
       ``(7) Survey and report.--
       ``(A) In general.--The Comptroller General of the United 
     States shall conduct a biennial survey of the satisfaction of 
     recipients of transportation intelligence reports 
     disseminated under the Plan.
       ``(B) Information sought.--The survey conducted under 
     subparagraph (A) shall seek information about the quality, 
     speed, regularity, and classification of the transportation 
     security information products disseminated by the Department 
     of Homeland Security to public and private stakeholders.
       ``(C) Report.--Not later than 1 year after the date of the 
     enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, and every even numbered year 
     thereafter, the Comptroller General shall submit to the 
     appropriate congressional committees, a report on the results 
     of the survey conducted under subparagraph (A). The 
     Comptroller General shall also provide a copy of the report 
     to the Secretary.
       ``(8) Security clearances.--The Secretary shall, to the 
     greatest extent practicable, take steps to expedite the 
     security clearances needed for designated public and private 
     stakeholders to receive and obtain access to classified 
     information distributed under this section, as appropriate.
       ``(9) Classification of material.--The Secretary, to the 
     greatest extent practicable, shall provide designated public 
     and private stakeholders with transportation security 
     information in an unclassified format.''.
       (b) Congressional Oversight of Security Assurance for 
     Public and Private Stakeholders.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary shall provide a semiannual report to the Committee 
     on Homeland Security and Governmental Affairs, the Committee 
     on Commerce, Science, and Transportation, and the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Homeland Security and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives that includes--
       (A) the number of public and private stakeholders who were 
     provided with each report;
       (B) a description of the measures the Secretary has taken, 
     under section 114(u)(7) of title 49, United States Code, as 
     added by this section, or otherwise, to ensure proper 
     treatment and security for any classified information to be 
     shared with the public and private stakeholders under the 
     Plan; and
       (C) an explanation of the reason for the denial of 
     transportation security information to any stakeholder who 
     had previously received such information.
       (2) No report required if no changes in stakeholders.--The 
     Secretary is not required to provide a semiannual report 
     under paragraph (1) if no stakeholders have been added to or 
     removed from the group of persons with whom transportation 
     security information is shared under the plan since the end 
     of the period covered by the last preceding semiannual 
     report.

     SEC. 1204. NATIONAL DOMESTIC PREPAREDNESS CONSORTIUM.

       (a) In General.--The Secretary is authorized to establish, 
     operate, and maintain a National Domestic Preparedness 
     Consortium within the Department.
       (b) Members.--Members of the National Domestic Preparedness 
     Consortium shall consist of--
       (1) the Center for Domestic Preparedness;
       (2) the National Energetic Materials Research and Testing 
     Center, New Mexico Institute of Mining and Technology;
       (3) the National Center for Biomedical Research and 
     Training, Louisiana State University;
       (4) the National Emergency Response and Rescue Training 
     Center, Texas A&M University;
       (5) the National Exercise, Test, and Training Center, 
     Nevada Test Site;
       (6) the Transportation Technology Center, Incorporated, in 
     Pueblo, Colorado; and
       (7) the National Disaster Preparedness Training Center, 
     University of Hawaii.
       (c) Duties.--The National Domestic Preparedness Consortium 
     shall identify, develop, test, and deliver training to State, 
     local, and tribal emergency response providers, provide on-
     site and mobile training at the performance and management 
     and planning levels, and facilitate the delivery of training 
     by the training partners of the Department.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary--
       (1) for the Center for Domestic Preparedness--
       (A) $57,000,000 for fiscal year 2008;
       (B) $60,000,000 for fiscal year 2009;
       (C) $63,000,000 for fiscal year 2010; and
       (D) $66,000,000 for fiscal year 2011; and
       (2) for the National Energetic Materials Research and 
     Testing Center, the National Center for Biomedical Research 
     and Training, the National Emergency Response and Rescue 
     Training Center, the National Exercise, Test, and Training 
     Center, the Transportation Technology Center, Incorporated, 
     and the National Disaster Preparedness Training Center each--
       (A) $22,000,000 for fiscal year 2008;
       (B) $23,000,000 for fiscal year 2009;
       (C) $24,000,000 for fiscal year 2010; and
       (D) $25,500,000 for fiscal year 2011.
       (e) Savings Provision.--From the amounts appropriated 
     pursuant to this section, the Secretary shall ensure that 
     future amounts provided to each of the following entities are 
     not less than the amounts provided to each such entity for 
     participation in the Consortium in fiscal year 2007:
       (1) the Center for Domestic Preparedness;
       (2) the National Energetic Materials Research and Testing 
     Center, New Mexico Institute of Mining and Technology;
       (3) the National Center for Biomedical Research and 
     Training, Louisiana State University;
       (4) the National Emergency Response and Rescue Training 
     Center, Texas A&M University; and
       (5) the National Exercise, Test, and Training Center, 
     Nevada Test Site.

     SEC. 1205. NATIONAL TRANSPORTATION SECURITY CENTER OF 
                   EXCELLENCE.

       (a) Establishment.--The Secretary shall establish a 
     National Transportation Security Center of Excellence to 
     conduct research and education activities, and to develop or 
     provide professional security training, including the 
     training of transportation employees and transportation 
     professionals.
       (b) Designation.--The Secretary shall select one of the 
     institutions identified in subsection (c) as the lead 
     institution responsible for coordinating the National 
     Transportation Security Center of Excellence.
       (c) Member Institutions.--
       (1) Consortium.--The institution of higher education 
     selected under subsection (b) shall execute agreements with 
     the other institutions of higher education identified in this 
     subsection and other institutions designated by the Secretary 
     to develop a consortium to assist in accomplishing the goals 
     of the Center.
       (2) Members.--The National Transportation Security Center 
     of Excellence shall consist of--
       (A) Texas Southern University in Houston, Texas;

[[Page 20676]]

       (B) the National Transit Institute at Rutgers, The State 
     University of New Jersey;
       (C) Tougaloo College;
       (D) the Connecticut Transportation Institute at the 
     University of Connecticut;
       (E) the Homeland Security Management Institute, Long Island 
     University;
       (F) the Mack-Blackwell National Rural Transportation Study 
     Center at the University of Arkansas; and
       (G) any additional institutions or facilities designated by 
     the Secretary.
       (3) Certain inclusions.--To the extent practicable, the 
     Secretary shall ensure that an appropriate number of any 
     additional consortium colleges or universities designated by 
     the Secretary under this subsection are Historically Black 
     Colleges and Universities, Hispanic Serving Institutions, and 
     Indian Tribally Controlled Colleges and Universities.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $18,000,000 for fiscal year 2008;
       (2) $18,000,000 for fiscal year 2009;
       (3) $18,000,000 for fiscal year 2010; and
       (4) $18,000,000 for fiscal year 2011.

     SEC. 1206. IMMUNITY FOR REPORTS OF SUSPECTED TERRORIST 
                   ACTIVITY OR SUSPICIOUS BEHAVIOR AND RESPONSE.

       (a) Immunity for Reports of Suspected Terrorist Activity or 
     Suspicious Behavior.--
       (1) In general.--Any person who, in good faith and based on 
     objectively reasonable suspicion, makes, or causes to be 
     made, a voluntary report of covered activity to an authorized 
     official shall be immune from civil liability under Federal, 
     State, and local law for such report.
       (2) False reports.--Paragraph (1) shall not apply to any 
     report that the person knew to be false or was made with 
     reckless disregard for the truth at the time that person made 
     that report.
       (b) Immunity for Response.--
       (1) In general.--Any authorized official who observes, or 
     receives a report of, covered activity and takes reasonable 
     action in good faith to respond to such activity shall have 
     qualified immunity from civil liability for such action, 
     consistent with applicable law in the relevant jurisdiction. 
     An authorized official as defined by subsection (d)(1)(A) not 
     entitled to assert the defense of qualified immunity shall 
     nevertheless be immune from civil liability under Federal, 
     State, and local law if such authorized official takes 
     reasonable action, in good faith, to respond to the reported 
     activity.
       (2) Savings clause.--Nothing in this subsection shall 
     affect the ability of any authorized official to assert any 
     defense, privilege, or immunity that would otherwise be 
     available, and this subsection shall not be construed as 
     affecting any such defense, privilege, or immunity.
       (c) Attorney Fees and Costs.--Any person or authorized 
     official found to be immune from civil liability under this 
     section shall be entitled to recover from the plaintiff all 
     reasonable costs and attorney fees.
       (d) Definitions.--In this section:
       (1) Authorized official.--The term ``authorized official'' 
     means--
       (A) any employee or agent of a passenger transportation 
     system or other person with responsibilities relating to the 
     security of such systems;
       (B) any officer, employee, or agent of the Department of 
     Homeland Security, the Department of Transportation, or the 
     Department of Justice with responsibilities relating to the 
     security of passenger transportation systems; or
       (C) any Federal, State, or local law enforcement officer.
       (2) Covered activity.--The term ``covered activity'' means 
     any suspicious transaction, activity, or occurrence that 
     involves, or is directed against, a passenger transportation 
     system or vehicle or its passengers indicating that an 
     individual may be engaging, or preparing to engage, in a 
     violation of law relating to--
       (A) a threat to a passenger transportation system or 
     passenger safety or security; or
       (B) an act of terrorism (as that term is defined in section 
     3077 of title 18, United States Code).
       (3) Passenger transportation.--The term ``passenger 
     transportation'' means--
       (A) public transportation, as defined in section 5302 of 
     title 49, United States Code;
       (B) over-the-road bus transportation, as defined in title 
     XV of this Act, and school bus transportation;
       (C) intercity passenger rail transportation as defined in 
     section 24102 of title 49, United States Code;
       (D) the transportation of passengers onboard a passenger 
     vessel as defined in section 2101 of title 46, United States 
     Code;
       (E) other regularly scheduled waterborne transportation 
     service of passengers by vessel of at least 20 gross tons; 
     and
       (F) air transportation, as defined in section 40102 of 
     title 49, United States Code, of passengers.
       (4) Passenger transportation system.--The term ``passenger 
     transportation system'' means an entity or entities organized 
     to provide passenger transportation using vehicles, including 
     the infrastructure used to provide such transportation.
       (5) Vehicle.--The term ``vehicle'' has the meaning given to 
     that term in section 1992(16) of title 18, United States 
     Code.
       (e) Effective Date.--This section shall take effect on 
     October 1, 2006, and shall apply to all activities and claims 
     occurring on or after such date.

            TITLE XIII--TRANSPORTATION SECURITY ENHANCEMENTS

     SEC. 1301. DEFINITIONS.

       For purposes of this title, the following terms apply:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Commerce, Science, and Transportation, the Committee on 
     Banking, Housing, and Urban Affairs, and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Homeland Security and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.
       (2) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (4) State.--The term ``State'' means any one of the 50 
     States, the District of Columbia, Puerto Rico, the Northern 
     Mariana Islands, the Virgin Islands, Guam, American Samoa, 
     and any other territory or possession of the United States.
       (5) Terrorism.--The term ``terrorism'' has the meaning that 
     term has in section 2 of the Homeland Security Act of 2002 (6 
     U.S.C. 101).
       (6) United states.--The term ``United States'' means the 50 
     States, the District of Columbia, Puerto Rico, the Northern 
     Mariana Islands, the Virgin Islands, Guam, American Samoa, 
     and any other territory or possession of the United States.

     SEC. 1302. ENFORCEMENT AUTHORITY.

       (a) In General.--Section 114 of title 49, United States 
     Code, as amended by section 1203 of this Act, is further 
     amended by adding at the end the following:
       ``(v) Enforcement of Regulations and Orders of the 
     Secretary of Homeland Security.--
       ``(1) Application of subsection.--
       ``(A) In general.--This subsection applies to the 
     enforcement of regulations prescribed, and orders issued, by 
     the Secretary of Homeland Security under a provision of 
     chapter 701 of title 46 and under a provision of this title 
     other than a provision of chapter 449 (in this subsection 
     referred to as an `applicable provision of this title').
       ``(B) Violations of chapter 449.--The penalties for 
     violations of regulations prescribed and orders issued by the 
     Secretary of Homeland Security under chapter 449 of this 
     title are provided under chapter 463 of this title.
       ``(C) Nonapplication to certain violations.--
       ``(i) Paragraphs (2) through (5) do not apply to violations 
     of regulations prescribed, and orders issued, by the 
     Secretary of Homeland Security under a provision of this 
     title--

       ``(I) involving the transportation of personnel or 
     shipments of materials by contractors where the Department of 
     Defense has assumed control and responsibility;
       ``(II) by a member of the armed forces of the United States 
     when performing official duties; or
       ``(III) by a civilian employee of the Department of Defense 
     when performing official duties.

       ``(ii) Violations described in subclause (I), (II), or 
     (III) of clause (i) shall be subject to penalties as 
     determined by the Secretary of Defense or the Secretary's 
     designee.
       ``(2) Civil penalty.--
       ``(A) In general.--A person is liable to the United States 
     Government for a civil penalty of not more than $10,000 for a 
     violation of a regulation prescribed, or order issued, by the 
     Secretary of Homeland Security under an applicable provision 
     of this title.
       ``(B) Repeat violations.--A separate violation occurs under 
     this paragraph for each day the violation continues.
       ``(3) Administrative imposition of civil penalties.--
       ``(A) In general.--The Secretary of Homeland Security may 
     impose a civil penalty for a violation of a regulation 
     prescribed, or order issued, under an applicable provision of 
     this title. The Secretary shall give written notice of the 
     finding of a violation and the penalty.
       ``(B) Scope of civil action.--In a civil action to collect 
     a civil penalty imposed by the Secretary under this 
     subsection, a court may not re-examine issues of liability or 
     the amount of the penalty.
       ``(C) Jurisdiction.--The district courts of the United 
     States shall have exclusive jurisdiction of civil actions to 
     collect a civil penalty imposed by the Secretary under this 
     subsection if--
       ``(i) the amount in controversy is more than--

       ``(I) $400,000, if the violation was committed by a person 
     other than an individual or small business concern; or
       ``(II) $50,000 if the violation was committed by an 
     individual or small business concern;

       ``(ii) the action is in rem or another action in rem based 
     on the same violation has been brought; or
       ``(iii) another action has been brought for an injunction 
     based on the same violation.
       ``(D) Maximum penalty.--The maximum civil penalty the 
     Secretary administratively may impose under this paragraph 
     is--
       ``(i) $400,000, if the violation was committed by a person 
     other than an individual or small business concern; or
       ``(ii) $50,000, if the violation was committed by an 
     individual or small business concern.
       ``(E) Notice and opportunity to request hearing.--Before 
     imposing a penalty under this section the Secretary shall 
     provide to the person against whom the penalty is to be 
     imposed--
       ``(i) written notice of the proposed penalty; and
       ``(ii) the opportunity to request a hearing on the proposed 
     penalty, if the Secretary receives

[[Page 20677]]

     the request not later than 30 days after the date on which 
     the person receives notice.
       ``(4) Compromise and setoff.--
       ``(A) The Secretary may compromise the amount of a civil 
     penalty imposed under this subsection.
       ``(B) The Government may deduct the amount of a civil 
     penalty imposed or compromised under this subsection from 
     amounts it owes the person liable for the penalty.
       ``(5) Investigations and proceedings.--Chapter 461 shall 
     apply to investigations and proceedings brought under this 
     subsection to the same extent that it applies to 
     investigations and proceedings brought with respect to 
     aviation security duties designated to be carried out by the 
     Secretary.
       ``(6) Definitions.--In this subsection:
       ``(A) Person.--The term `person' does not include--
       ``(i) the United States Postal Service; or
       ``(ii) the Department of Defense.
       ``(B) Small business concern.--The term `small business 
     concern' has the meaning given that term in section 3 of the 
     Small Business Act (15 U.S.C. 632).
       ``(7) Enforcement transparency.--
       ``(A) In general.--Not later than December 31, 2008, and 
     annually thereafter, the Secretary shall--
       ``(i) provide an annual summary to the public of all 
     enforcement actions taken by the Secretary under this 
     subsection; and
       ``(ii) include in each such summary the docket number of 
     each enforcement action, the type of alleged violation, the 
     penalty or penalties proposed, and the final assessment 
     amount of each penalty.
       ``(B) Electronic availability.--Each summary under this 
     paragraph shall be made available to the public by electronic 
     means.
       ``(C) Relationship to the freedom of information act and 
     the privacy act.--Nothing in this subsection shall be 
     construed to require disclosure of information or records 
     that are exempt from disclosure under sections 552 or 552a of 
     title 5.
       ``(D) Enforcement guidance.--Not later than 180 days after 
     the enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Secretary shall provide a report 
     to the public describing the enforcement process established 
     under this subsection.''.
       (b) Conforming Amendment.--Section 46301(a)(4) of title 49, 
     United States Code, is amended by striking ``or another 
     requirement under this title administered by the Under 
     Secretary of Transportation for Security''.

     SEC. 1303. AUTHORIZATION OF VISIBLE INTERMODAL PREVENTION AND 
                   RESPONSE TEAMS.

       (a) In General.--The Secretary, acting through the 
     Administrator of the Transportation Security Administration, 
     may develop Visible Intermodal Prevention and Response 
     (referred to in this section as ``VIPR'') teams to augment 
     the security of any mode of transportation at any location 
     within the United States. In forming a VIPR team, the 
     Secretary--
       (1) may use any asset of the Department, including Federal 
     air marshals, surface transportation security inspectors, 
     canine detection teams, and advanced screening technology;
       (2) may determine when a VIPR team shall be deployed, as 
     well as the duration of the deployment;
       (3) shall, prior to and during the deployment, consult with 
     local security and law enforcement officials in the 
     jurisdiction where the VIPR team is or will be deployed, to 
     develop and agree upon the appropriate operational protocols 
     and provide relevant information about the mission of the 
     VIPR team, as appropriate; and
       (4) shall, prior to and during the deployment, consult with 
     all transportation entities directly affected by the 
     deployment of a VIPR team, as appropriate, including railroad 
     carriers, air carriers, airport owners, over-the-road bus 
     operators and terminal owners and operators, motor carriers, 
     public transportation agencies, owners or operators of 
     highways, port operators and facility owners, vessel owners 
     and operators and pipeline operators.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     such sums as necessary for fiscal years 2007 through 2011.

     SEC. 1304. SURFACE TRANSPORTATION SECURITY INSPECTORS.

       (a) In General.--The Secretary, acting through the 
     Administrator of the Transportation Security Administration, 
     is authorized to train, employ, and utilize surface 
     transportation security inspectors.
       (b) Mission.--The Secretary shall use surface 
     transportation security inspectors to assist surface 
     transportation carriers, operators, owners, entities, and 
     facilities to enhance their security against terrorist attack 
     and other security threats and to assist the Secretary in 
     enforcing applicable surface transportation security 
     regulations and directives.
       (c) Authorities.--Surface transportation security 
     inspectors employed pursuant to this section shall be 
     authorized such powers and delegated such responsibilities as 
     the Secretary determines appropriate, subject to subsection 
     (e).
       (d) Requirements.--The Secretary shall require that surface 
     transportation security inspectors have relevant 
     transportation experience and other security and inspection 
     qualifications, as determined appropriate.
       (e) Limitations.--
       (1) Inspectors.--Surface transportation inspectors shall be 
     prohibited from issuing fines to public transportation 
     agencies, as defined in title XIV, for violations of the 
     Department's regulations or orders except through the process 
     described in paragraph (2).
       (2) Civil penalties.--The Secretary shall be prohibited 
     from assessing civil penalties against public transportation 
     agencies, as defined in title XIV, for violations of the 
     Department's regulations or orders, except in accordance with 
     the following:
       (A) In the case of a public transportation agency that is 
     found to be in violation of a regulation or order issued by 
     the Secretary, the Secretary shall seek correction of the 
     violation through a written notice to the public 
     transportation agency and shall give the public 
     transportation agency reasonable opportunity to correct the 
     violation or propose an alternative means of compliance 
     acceptable to the Secretary.
       (B) If the public transportation agency does not correct 
     the violation or propose an alternative means of compliance 
     acceptable to the Secretary within a reasonable time period 
     that is specified in the written notice, the Secretary may 
     take any action authorized in section 114 of title 49, United 
     States Code, as amended by this Act.
       (3) Limitation on secretary.--The Secretary shall not 
     initiate civil enforcement actions for violations of 
     administrative and procedural requirements pertaining to the 
     application for, and expenditure of, funds awarded under 
     transportation security grant programs under this Act.
       (f) Number of Inspectors.--The Secretary shall employ up to 
     a total of--
       (1) 100 surface transportation security inspectors in 
     fiscal year 2007;
       (2) 150 surface transportation security inspectors in 
     fiscal year 2008;
       (3) 175 surface transportation security inspectors in 
     fiscal year 2009; and
       (4) 200 surface transportation security inspectors in 
     fiscal years 2010 and 2011.
       (g) Coordination.--The Secretary shall ensure that the 
     mission of the surface transportation security inspectors is 
     consistent with any relevant risk assessments required by 
     this Act or completed by the Department, the modal plans 
     required under section 114(t) of title 49, United States 
     Code, the Memorandum of Understanding between the Department 
     and the Department of Transportation on Roles and 
     Responsibilities, dated September 28, 2004, and any and all 
     subsequent annexes to this Memorandum of Understanding, and 
     other relevant documents setting forth the Department's 
     transportation security strategy, as appropriate.
       (h) Consultation.--The Secretary shall periodically consult 
     with the surface transportation entities which are or may be 
     inspected by the surface transportation security inspectors, 
     including, as appropriate, railroad carriers, over-the-road 
     bus operators and terminal owners and operators, motor 
     carriers, public transportation agencies, owners or operators 
     of highways, and pipeline operators on--
       (1) the inspectors' duties, responsibilities, authorities, 
     and mission; and
       (2) strategies to improve transportation security and to 
     ensure compliance with transportation security requirements.
       (i) Report.--Not later than September 30, 2008, the 
     Department of Homeland Security Inspector General shall 
     transmit a report to the appropriate congressional committees 
     on the performance and effectiveness of surface 
     transportation security inspectors, whether there is a need 
     for additional inspectors, and other recommendations.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $11,400,000 for fiscal year 2007;
       (2) $17,100,000 for fiscal year 2008;
       (3) $19,950,000 for fiscal year 2009;
       (4) $22,800,000 for fiscal year 2010; and
       (5) $22,800,000 for fiscal year 2011.

     SEC. 1305. SURFACE TRANSPORTATION SECURITY TECHNOLOGY 
                   INFORMATION SHARING.

       (a) In General.--
       (1) Information sharing.--The Secretary, in consultation 
     with the Secretary of Transportation, shall establish a 
     program to provide appropriate information that the 
     Department has gathered or developed on the performance, use, 
     and testing of technologies that may be used to enhance 
     railroad, public transportation, and surface transportation 
     security to surface transportation entities, including 
     railroad carriers, over-the-road bus operators and terminal 
     owners and operators, motor carriers, public transportation 
     agencies, owners or operators of highways, pipeline 
     operators, and State, local, and tribal governments that 
     provide security assistance to such entities.
       (2) Designation of qualified antiterrorism technologies.--
     The Secretary shall include in such information provided in 
     paragraph (1) whether the technology is designated as a 
     qualified antiterrorism technology under the Support Anti-
     terrorism by Fostering Effective Technologies Act of 2002 
     (Public Law 107-296), as appropriate.
       (b) Purpose.--The purpose of the program is to assist 
     eligible grant recipients under this Act and others, as 
     appropriate, to purchase and use the best technology and 
     equipment available to meet the security needs of the 
     Nation's surface transportation system.
       (c) Coordination.--The Secretary shall ensure that the 
     program established under this section makes use of and is 
     consistent with other Department technology testing, 
     information sharing, evaluation, and standards-setting 
     programs, as appropriate.

[[Page 20678]]



     SEC. 1306. TSA PERSONNEL LIMITATIONS.

       Any statutory limitation on the number of employees in the 
     Transportation Security Administration does not apply to 
     employees carrying out this title and titles XII, XIV, and 
     XV.

     SEC. 1307. NATIONAL EXPLOSIVES DETECTION CANINE TEAM TRAINING 
                   PROGRAM.

       (a) Definitions.--For purposes of this section, the term 
     ``explosives detection canine team'' means a canine and a 
     canine handler that are trained to detect explosives, 
     radiological materials, chemical, nuclear or biological 
     weapons, or other threats as defined by the Secretary.
       (b) In General.--
       (1) Increased capacity.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Homeland 
     Security shall--
       (A) begin to increase the number of explosives detection 
     canine teams certified by the Transportation Security 
     Administration for the purposes of transportation-related 
     security by up to 200 canine teams annually by the end of 
     2010; and
       (B) encourage State, local, and tribal governments and 
     private owners of high-risk transportation facilities to 
     strengthen security through the use of highly trained 
     explosives detection canine teams.
       (2) Explosives detection canine teams.--The Secretary of 
     Homeland Security shall increase the number of explosives 
     detection canine teams by--
       (A) using the Transportation Security Administration's 
     National Explosives Detection Canine Team Training Center, 
     including expanding and upgrading existing facilities, 
     procuring and breeding additional canines, and increasing 
     staffing and oversight commensurate with the increased 
     training and deployment capabilities;
       (B) partnering with other Federal, State, or local 
     agencies, nonprofit organizations, universities, or the 
     private sector to increase the training capacity for canine 
     detection teams;
       (C) procuring explosives detection canines trained by 
     nonprofit organizations, universities, or the private sector 
     provided they are trained in a manner consistent with the 
     standards and requirements developed pursuant to subsection 
     (c) or other criteria developed by the Secretary; or
       (D) a combination of subparagraphs (A), (B), and (C), as 
     appropriate.
       (c) Standards for Explosives Detection Canine Teams.--
       (1) In general.--Based on the feasibility in meeting the 
     ongoing demand for quality explosives detection canine teams, 
     the Secretary shall establish criteria, including canine 
     training curricula, performance standards, and other 
     requirements approved by the Transportation Security 
     Administration necessary to ensure that explosives detection 
     canine teams trained by nonprofit organizations, 
     universities, and private sector entities are adequately 
     trained and maintained.
       (2) Expansion.--In developing and implementing such 
     curriculum, performance standards, and other requirements, 
     the Secretary shall--
       (A) coordinate with key stakeholders, including 
     international, Federal, State, and local officials, and 
     private sector and academic entities to develop best practice 
     guidelines for such a standardized program, as appropriate;
       (B) require that explosives detection canine teams trained 
     by nonprofit organizations, universities, or private sector 
     entities that are used or made available by the Secretary be 
     trained consistent with specific training criteria developed 
     by the Secretary; and
       (C) review the status of the private sector programs on at 
     least an annual basis to ensure compliance with training 
     curricula, performance standards, and other requirements.
       (d) Deployment.--The Secretary shall--
       (1) use the additional explosives detection canine teams as 
     part of the Department's efforts to strengthen security 
     across the Nation's transportation network, and may use the 
     canine teams on a more limited basis to support other 
     homeland security missions, as determined appropriate by the 
     Secretary;
       (2) make available explosives detection canine teams to all 
     modes of transportation, for high-risk areas or to address 
     specific threats, on an as-needed basis and as otherwise 
     determined appropriate by the Secretary;
       (3) encourage, but not require, any transportation facility 
     or system to deploy TSA-certified explosives detection canine 
     teams developed under this section; and
       (4) consider specific needs and training requirements for 
     explosives detection canine teams to be deployed across the 
     Nation's transportation network, including in venues of 
     multiple modes of transportation, as appropriate.
       (e) Canine Procurement.--The Secretary, acting through the 
     Administrator of the Transportation Security Administration, 
     shall work to ensure that explosives detection canine teams 
     are procured as efficiently as possible and at the best 
     price, while maintaining the needed level of quality, 
     including, if appropriate, through increased domestic 
     breeding.
       (f) Study.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall report 
     to the appropriate congressional committees on the 
     utilization of explosives detection canine teams to 
     strengthen security and the capacity of the national 
     explosive detection canine team program.
       (g) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary to carry out 
     this section for fiscal years 2007 through 2011.

     SEC. 1308. MARITIME AND SURFACE TRANSPORTATION SECURITY USER 
                   FEE STUDY.

       (a) In General.--The Secretary of Homeland Security shall 
     conduct a study of the need for, and feasibility of, 
     establishing a system of maritime and surface transportation-
     related user fees that may be imposed and collected as a 
     dedicated revenue source, on a temporary or continuing basis, 
     to provide necessary funding for legitimate improvements to, 
     and maintenance of, maritime and surface transportation 
     security, including vessel and facility plans required under 
     section 70103(c) of title 46, United States Code. In 
     developing the study, the Secretary shall consult with 
     maritime and surface transportation carriers, shippers, 
     passengers, facility owners and operators, and other persons 
     as determined by the Secretary. Not later than 1 year after 
     the date of the enactment of this Act, the Secretary shall 
     submit a report to the appropriate congressional committees 
     that contains--
       (1) the results of the study;
       (2) an assessment of the annual sources of funding 
     collected through maritime and surface transportation at 
     ports of entry and a detailed description of the distribution 
     and use of such funds, including the amount and percentage of 
     such sources that are dedicated to improve and maintain 
     security;
       (3) an assessment of--
       (A) the fees, charges, and standards imposed on United 
     States ports, port terminal operators, shippers, carriers, 
     and other persons who use United States ports of entry 
     compared with the fees and charges imposed on Canadian and 
     Mexican ports, Canadian and Mexican port terminal operators, 
     shippers, carriers, and other persons who use Canadian or 
     Mexican ports of entry; and
       (B) the impact of such fees, charges, and standards on the 
     competitiveness of United States ports, port terminal 
     operators, railroad carriers, motor carriers, pipelines, 
     other transportation modes, and shippers;
       (4) the private efforts and investments to secure maritime 
     and surface transportation modes, including those that are 
     operational and those that are planned; and
       (5) the Secretary's recommendations based upon the study, 
     and an assessment of the consistency of such recommendations 
     with the international obligations and commitments of the 
     United States.
       (b) Definitions.--In this section:
       (1) Port of entry.--The term ``port of entry'' means any 
     port or other facility through which foreign goods are 
     permitted to enter the customs territory of a country under 
     official supervision.
       (2) Maritime and surface transportation.--The term 
     ``maritime and surface transportation'' includes ocean borne 
     and vehicular transportation.

     SEC. 1309. PROHIBITION OF ISSUANCE OF TRANSPORTATION SECURITY 
                   CARDS TO CONVICTED FELONS.

       (a) In General.--Section 70105 of title 46, United States 
     Code, is amended--
       (1) in subsection (b)(1), by striking ``decides that the 
     individual poses a security risk under subsection (c)'' and 
     inserting ``determines under subsection (c) that the 
     individual poses a security risk''; and
       (2) in subsection (c), by amending paragraph (1) to read as 
     follows:
       ``(1) Disqualifications.--
       ``(A) Permanent disqualifying criminal offenses.--Except as 
     provided under paragraph (2), an individual is permanently 
     disqualified from being issued a biometric transportation 
     security card under subsection (b) if the individual has been 
     convicted, or found not guilty by reason of insanity, in a 
     civilian or military jurisdiction of any of the following 
     felonies:
       ``(i) Espionage or conspiracy to commit espionage.
       ``(ii) Sedition or conspiracy to commit sedition.
       ``(iii) Treason or conspiracy to commit treason.
       ``(iv) A Federal crime of terrorism (as defined in section 
     2332b(g) of title 18), a crime under a comparable State law, 
     or conspiracy to commit such crime.
       ``(v) A crime involving a transportation security incident.
       ``(vi) Improper transportation of a hazardous material in 
     violation of section 5104(b) of title 49, or a comparable 
     State law.
       ``(vii) Unlawful possession, use, sale, distribution, 
     manufacture, purchase, receipt, transfer, shipment, 
     transportation, delivery, import, export, or storage of, or 
     dealing in, an explosive or explosive device. In this clause, 
     an explosive or explosive device includes--

       ``(I) an explosive (as defined in sections 232(5) and 
     844(j) of title 18);
       ``(II) explosive materials (as defined in subsections (c) 
     through (f) of section 841 of title 18); and
       ``(III) a destructive device (as defined in 921(a)(4) of 
     title 18 or section 5845(f) of the Internal Revenue Code of 
     1986).

       ``(viii) Murder.
       ``(ix) Making any threat, or maliciously conveying false 
     information knowing the same to be false, concerning the 
     deliverance, placement, or detonation of an explosive or 
     other lethal device in or against a place of public use, a 
     State or other government facility, a public transportation 
     system, or an infrastructure facility.
       ``(x) A violation of chapter 96 of title 18, popularly 
     known as the Racketeer Influenced and Corrupt Organizations 
     Act, or a comparable State law, if one of the predicate acts 
     found by a jury or admitted by the defendant consists of one 
     of the crimes listed in this subparagraph.

[[Page 20679]]

       ``(xi) Attempt to commit any of the crimes listed in 
     clauses (i) through (iv).
       ``(xii) Conspiracy or attempt to commit any of the crimes 
     described in clauses (v) through (x).
       ``(B) Interim disqualifying criminal offenses.--Except as 
     provided under paragraph (2), an individual is disqualified 
     from being issued a biometric transportation security card 
     under subsection (b) if the individual has been convicted, or 
     found not guilty by reason of insanity, during the 7-year 
     period ending on the date on which the individual applies for 
     such card, or was released from incarceration during the 5-
     year period ending on the date on which the individual 
     applies for such card, of any of the following felonies:
       ``(i) Unlawful possession, use, sale, manufacture, 
     purchase, distribution, receipt, transfer, shipment, 
     transportation, delivery, import, export, or storage of, or 
     dealing in, a firearm or other weapon. In this clause, a 
     firearm or other weapon includes--

       ``(I) firearms (as defined in section 921(a)(3) of title 18 
     or section 5845(a) of the Internal Revenue Code of 1986); and
       ``(II) items contained on the U.S. Munitions Import List 
     under section 447.21 of title 27, Code of Federal 
     Regulations.

       ``(ii) Extortion.
       ``(iii) Dishonesty, fraud, or misrepresentation, including 
     identity fraud and money laundering if the money laundering 
     is related to a crime described in this subparagraph or 
     subparagraph (A). In this clause, welfare fraud and passing 
     bad checks do not constitute dishonesty, fraud, or 
     misrepresentation.
       ``(iv) Bribery.
       ``(v) Smuggling.
       ``(vi) Immigration violations.
       ``(vii) Distribution of, possession with intent to 
     distribute, or importation of a controlled substance.
       ``(viii) Arson.
       ``(ix) Kidnaping or hostage taking.
       ``(x) Rape or aggravated sexual abuse.
       ``(xi) Assault with intent to kill.
       ``(xii) Robbery.
       ``(xiii) Conspiracy or attempt to commit any of the crimes 
     listed in this subparagraph.
       ``(xiv) Fraudulent entry into a seaport in violation of 
     section 1036 of title 18, or a comparable State law.
       ``(xv) A violation of the chapter 96 of title 18, popularly 
     known as the Racketeer Influenced and Corrupt Organizations 
     Act or a comparable State law, other than any of the 
     violations listed in subparagraph (A)(x).
       ``(C) Under want, warrant, or indictment.--An applicant who 
     is wanted, or under indictment, in any civilian or military 
     jurisdiction for a felony listed in paragraph (1)(A), is 
     disqualified from being issued a biometric transportation 
     security card under subsection (b) until the want or warrant 
     is released or the indictment is dismissed.
       ``(D) Other potential disqualifications.--Except as 
     provided under subparagraphs (A) through (C), an individual 
     may not be denied a transportation security card under 
     subsection (b) unless the Secretary determines that 
     individual--
       ``(i) has been convicted within the preceding 7-year period 
     of a felony or found not guilty by reason of insanity of a 
     felony--

       ``(I) that the Secretary believes could cause the 
     individual to be a terrorism security risk to the United 
     States; or
       ``(II) for causing a severe transportation security 
     incident;

       ``(ii) has been released from incarceration within the 
     preceding 5-year period for committing a felony described in 
     clause (i);
       ``(iii) may be denied admission to the United States or 
     removed from the United States under the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.); or
       ``(iv) otherwise poses a terrorism security risk to the 
     United States.
       ``(E) Modification of listed offenses.--The Secretary may, 
     by rulemaking, add to or modify the list of disqualifying 
     crimes described in paragraph (1)(B).''.

     SEC. 1310. ROLES OF THE DEPARTMENT OF HOMELAND SECURITY AND 
                   THE DEPARTMENT OF TRANSPORTATION.

       The Secretary of Homeland Security is the principal Federal 
     official responsible for transportation security. The roles 
     and responsibilities of the Department of Homeland Security 
     and the Department of Transportation in carrying out this 
     title and titles XII, XIV, and XV are the roles and 
     responsibilities of such Departments pursuant to the Aviation 
     and Transportation Security Act (Public Law 107-71); the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458); the National Infrastructure Protection 
     Plan required by Homeland Security Presidential Directive 7; 
     The Homeland Security Act of 2002; The National Response 
     Plan; Executive Order 13416: Strengthening Surface 
     Transportation Security, dated December 5, 2006; the 
     Memorandum of Understanding between the Department and the 
     Department of Transportation on Roles and Responsibilities, 
     dated September 28, 2004 and any and all subsequent annexes 
     to this Memorandum of Understanding; and any other relevant 
     agreements between the two Departments.

               TITLE XIV--PUBLIC TRANSPORTATION SECURITY

     SEC. 1401. SHORT TITLE.

       This title may be cited as the ``National Transit Systems 
     Security Act of 2007''.

     SEC. 1402. DEFINITIONS.

       For purposes of this title, the following terms apply:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Banking, Housing, and Urban Affairs, and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Homeland Security and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.
       (2) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (3) Disadvantaged businesses concerns.--The term 
     ``disadvantaged business concerns'' means small businesses 
     that are owned and controlled by socially and economically 
     disadvantaged individuals as defined in section 124, title 
     13, Code of Federal Regulations.
       (4) Frontline employee.--The term ``frontline employee'' 
     means an employee of a public transportation agency who is a 
     transit vehicle driver or operator, dispatcher, maintenance 
     and maintenance support employee, station attendant, customer 
     service employee, security employee, or transit police, or 
     any other employee who has direct contact with riders on a 
     regular basis, and any other employee of a public 
     transportation agency that the Secretary determines should 
     receive security training under section 1408.
       (5) Public transportation agency.--The term ``public 
     transportation agency'' means a publicly owned operator of 
     public transportation eligible to receive Federal assistance 
     under chapter 53 of title 49, United States Code.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.

     SEC. 1403. FINDINGS.

       Congress finds that--
       (1) 182 public transportation systems throughout the world 
     have been primary targets of terrorist attacks;
       (2) more than 6,000 public transportation agencies operate 
     in the United States;
       (3) people use public transportation vehicles 33,000,000 
     times each day;
       (4) the Federal Transit Administration has invested 
     $93,800,000,000 since 1992 for construction and improvements;
       (5) the Federal investment in transit security has been 
     insufficient; and
       (6) greater Federal investment in transit security 
     improvements per passenger boarding is necessary to better 
     protect the American people, given transit's vital importance 
     in creating mobility and promoting our Nation's economy.

     SEC. 1404. NATIONAL STRATEGY FOR PUBLIC TRANSPORTATION 
                   SECURITY.

       (a) National Strategy.--Not later than 9 months after the 
     date of enactment of this Act and based upon the previous and 
     ongoing security assessments conducted by the Department and 
     the Department of Transportation, the Secretary, consistent 
     with and as required by section 114(t) of title 49, United 
     States Code, shall develop and implement the modal plan for 
     public transportation, entitled the ``National Strategy for 
     Public Transportation Security''.
       (b) Purpose.--
       (1) Guidelines.--In developing the National Strategy for 
     Public Transportation Security, the Secretary shall establish 
     guidelines for public transportation security that--
       (A) minimize security threats to public transportation 
     systems; and
       (B) maximize the abilities of public transportation systems 
     to mitigate damage resulting from terrorist attack or other 
     major incident.
       (2) Assessments and consultations.--In developing the 
     National Strategy for Public Transportation Security, the 
     Secretary shall--
       (A) use established and ongoing public transportation 
     security assessments as the basis of the National Strategy 
     for Public Transportation Security; and
       (B) consult with all relevant stakeholders, including 
     public transportation agencies, nonprofit labor organizations 
     representing public transportation employees, emergency 
     responders, public safety officials, and other relevant 
     parties.
       (c) Contents.--In the National Strategy for Public 
     Transportation Security, the Secretary shall describe 
     prioritized goals, objectives, policies, actions, and 
     schedules to improve the security of public transportation.
       (d) Responsibilities.--The Secretary shall include in the 
     National Strategy for Public Transportation Security a 
     description of the roles, responsibilities, and authorities 
     of Federal, State, and local agencies, tribal governments, 
     and appropriate stakeholders. The plan shall also include--
       (1) the identification of, and a plan to address, gaps and 
     unnecessary overlaps in the roles, responsibilities, and 
     authorities of Federal agencies; and
       (2) a process for coordinating existing or future security 
     strategies and plans for public transportation, including the 
     National Infrastructure Protection Plan required by Homeland 
     Security Presidential Directive 7; Executive Order 13416: 
     Strengthening Surface Transportation Security dated December 
     5, 2006; the Memorandum of Understanding between the 
     Department and the Department of Transportation on Roles and 
     Responsibilities dated September 28, 2004; and subsequent 
     annexes and agreements.
       (e) Adequacy of Existing Plans and Strategies.--In 
     developing the National Strategy for Public Transportation 
     Security, the Secretary shall use relevant existing risk 
     assessments and strategies developed by the Department or 
     other Federal agencies, including those developed or 
     implemented pursuant to section 114(t) of title

[[Page 20680]]

     49, United States Code, or Homeland Security Presidential 
     Directive 7.
       (f) Funding.--There is authorized to be appropriated to the 
     Secretary to carry out this section $2,000,000 for fiscal 
     year 2008.

     SEC. 1405. SECURITY ASSESSMENTS AND PLANS.

       (a) Public Transportation Security Assessments.--
       (1) Submission.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Federal 
     Transit Administration of the Department of Transportation 
     shall submit all public transportation security assessments 
     and all other relevant information to the Secretary.
       (2) Secretarial review.--Not later than 60 days after 
     receiving the submission under paragraph (1), the Secretary 
     shall review and augment the security assessments received, 
     and conduct additional security assessments as necessary to 
     ensure that at a minimum, all high risk public transportation 
     agencies, as determined by the Secretary, will have a 
     completed security assessment.
       (3) Content.--The Secretary shall ensure that each 
     completed security assessment includes--
       (A) identification of critical assets, infrastructure, and 
     systems and their vulnerabilities; and
       (B) identification of any other security weaknesses, 
     including weaknesses in emergency response planning and 
     employee training.
       (b) Bus and Rural Public Transportation Systems.--Not later 
     than 180 days after the date of enactment of this Act, the 
     Secretary shall--
       (1) conduct security assessments, based on a representative 
     sample, to determine the specific needs of--
       (A) local bus-only public transportation systems; and
       (B) public transportation systems that receive funds under 
     section 5311 of title 49, United States Code; and
       (2) make the representative assessments available for use 
     by similarly situated systems.
       (c) Security Plans.--
       (1) Requirement for plan.--
       (A) High risk agencies.--The Secretary shall require public 
     transportation agencies determined by the Secretary to be at 
     high risk for terrorism to develop a comprehensive security 
     plan. The Secretary shall provide technical assistance and 
     guidance to public transportation agencies in preparing and 
     implementing security plans under this section.
       (B) Other agencies.--Provided that no public transportation 
     agency that has not been designated high risk shall be 
     required to develop a security plan, the Secretary may also 
     establish a security program for public transportation 
     agencies not designated high risk by the Secretary, to assist 
     those public transportation agencies which request 
     assistance, including--
       (i) guidance to assist such agencies in conducting security 
     assessments and preparing and implementing security plans; 
     and
       (ii) a process for the Secretary to review and approve such 
     assessments and plans, as appropriate.
       (2) Contents of plan.--The Secretary shall ensure that 
     security plans include, as appropriate--
       (A) a prioritized list of all items included in the public 
     transportation agency's security assessment that have not yet 
     been addressed;
       (B) a detailed list of any additional capital and 
     operational improvements identified by the Department or the 
     public transportation agency and a certification of the 
     public transportation agency's technical capacity for 
     operating and maintaining any security equipment that may be 
     identified in such list;
       (C) specific procedures to be implemented or used by the 
     public transportation agency in response to a terrorist 
     attack, including evacuation and passenger communication 
     plans and appropriate evacuation and communication measures 
     for the elderly and individuals with disabilities;
       (D) a coordinated response plan that establishes procedures 
     for appropriate interaction with State and local law 
     enforcement agencies, emergency responders, and Federal 
     officials in order to coordinate security measures and plans 
     for response in the event of a terrorist attack or other 
     major incident;
       (E) a strategy and timeline for conducting training under 
     section 1408;
       (F) plans for providing redundant and other appropriate 
     backup systems necessary to ensure the continued operation of 
     critical elements of the public transportation system in the 
     event of a terrorist attack or other major incident;
       (G) plans for providing service capabilities throughout the 
     system in the event of a terrorist attack or other major 
     incident in the city or region which the public 
     transportation system serves;
       (H) methods to mitigate damage within a public 
     transportation system in case of an attack on the system, 
     including a plan for communication and coordination with 
     emergency responders; and
       (I) other actions or procedures as the Secretary determines 
     are appropriate to address the security of the public 
     transportation system.
       (3) Review.--Not later than 6 months after receiving the 
     plans required under this section, the Secretary shall--
       (A) review each security plan submitted;
       (B) require the public transportation agency to make any 
     amendments needed to ensure that the plan meets the 
     requirements of this section; and
       (C) approve any security plan that meets the requirements 
     of this section.
       (4) Exemption.--The Secretary shall not require a public 
     transportation agency to develop a security plan under 
     paragraph (1) if the agency does not receive a grant under 
     section 1406.
       (5) Waiver.--The Secretary may waive the exemption provided 
     in paragraph (4) to require a public transportation agency to 
     develop a security plan under paragraph (1) in the absence of 
     grant funds under section 1406 if not less than 3 days after 
     making the determination the Secretary provides the 
     appropriate congressional committees and the public 
     transportation agency written notification detailing the need 
     for the security plan, the reasons grant funding has not been 
     made available, and the reason the agency has been designated 
     high risk.
       (d) Consistency With Other Plans.--The Secretary shall 
     ensure that the security plans developed by public 
     transportation agencies under this section are consistent 
     with the security assessments developed by the Department and 
     the National Strategy for Public Transportation Security 
     developed under section 1404.
       (e) Updates.--Not later than September 30, 2008, and 
     annually thereafter, the Secretary shall--
       (1) update the security assessments referred to in 
     subsection (a);
       (2) update the security improvement priorities required 
     under subsection (f); and
       (3) require public transportation agencies to update the 
     security plans required under subsection (c) as appropriate.
       (f) Security Improvement Priorities.--
       (1) In general.--Beginning in fiscal year 2008 and each 
     fiscal year thereafter, the Secretary, after consultation 
     with management and nonprofit employee labor organizations 
     representing public transportation employees as appropriate, 
     and with appropriate State and local officials, shall utilize 
     the information developed or received in this section to 
     establish security improvement priorities unique to each 
     individual public transportation agency that has been 
     assessed.
       (2) Allocations.--The Secretary shall use the security 
     improvement priorities established in paragraph (1) as the 
     basis for allocating risk-based grant funds under section 
     1406, unless the Secretary notifies the appropriate 
     congressional committees that the Secretary has determined an 
     adjustment is necessary to respond to an urgent threat or 
     other significant national security factors.
       (g) Shared Facilities.--The Secretary shall encourage the 
     development and implementation of coordinated assessments and 
     security plans to the extent a public transportation agency 
     shares facilities (such as tunnels, bridges, stations, or 
     platforms) with another public transportation agency, a 
     freight or passenger railroad carrier, or over-the-road bus 
     operator that are geographically close or otherwise co-
     located.
       (h) Nondisclosure of Information.--
       (1) Submission of information to congress.--Nothing in this 
     section shall be construed as authorizing the withholding of 
     any information from Congress.
       (2) Disclosure of independently furnished information.--
     Nothing in this section shall be construed as affecting any 
     authority or obligation of a Federal agency to disclose any 
     record or information that the Federal agency obtains from a 
     public transportation agency under any other Federal law.
       (i) Determination.--In response to a petition by a public 
     transportation agency or at the discretion of the Secretary, 
     the Secretary may recognize existing procedures, protocols, 
     and standards of a public transportation agency that the 
     Secretary determines meet all or part of the requirements of 
     this section regarding security assessments or security 
     plans.

     SEC. 1406. PUBLIC TRANSPORTATION SECURITY ASSISTANCE.

       (a) Security Assistance Program.--
       (1) In general.--The Secretary shall establish a program 
     for making grants to eligible public transportation agencies 
     for security improvements described in subsection (b).
       (2) Eligibility.--A public transportation agency is 
     eligible for a grant under this section if the Secretary has 
     performed a security assessment or the agency has developed a 
     security plan under section 1405. Grant funds shall only be 
     awarded for permissible uses under subsection (b) to--
       (A) address items included in a security assessment; or
       (B) further a security plan.
       (b) Uses of Funds.--A recipient of a grant under subsection 
     (a) shall use the grant funds for one or more of the 
     following:
       (1) Capital uses of funds, including--
       (A) tunnel protection systems;
       (B) perimeter protection systems, including access control, 
     installation of improved lighting, fencing, and barricades;
       (C) redundant critical operations control systems;
       (D) chemical, biological, radiological, or explosive 
     detection systems, including the acquisition of canines used 
     for such detection;
       (E) surveillance equipment;
       (F) communications equipment, including mobile service 
     equipment to provide access to wireless Enhanced 911 (E911) 
     emergency services in an underground fixed guideway system;
       (G) emergency response equipment, including personal 
     protective equipment;
       (H) fire suppression and decontamination equipment;
       (I) global positioning or tracking and recovery equipment, 
     and other automated-vehicle-locator-type system equipment;
       (J) evacuation improvements;

[[Page 20681]]

       (K) purchase and placement of bomb-resistant trash cans 
     throughout public transportation facilities, including subway 
     exits, entrances, and tunnels;
       (L) capital costs associated with security awareness, 
     security preparedness, and security response training, 
     including training under section 1408 and exercises under 
     section 1407;
       (M) security improvements for public transportation 
     systems, including extensions thereto, in final design or 
     under construction;
       (N) security improvements for stations and other public 
     transportation infrastructure, including stations and other 
     public transportation infrastructure owned by State or local 
     governments; and
       (O) other capital security improvements determined 
     appropriate by the Secretary.
       (2) Operating uses of funds, including--
       (A) security training, including training under section 
     1408 and training developed by institutions of higher 
     education and by nonprofit employee labor organizations, for 
     public transportation employees, including frontline 
     employees;
       (B) live or simulated exercises under section 1407;
       (C) public awareness campaigns for enhanced public 
     transportation security;
       (D) canine patrols for chemical, radiological, biological, 
     or explosives detection;
       (E) development of security plans under section 1405;
       (F) overtime reimbursement including reimbursement of 
     State, local, and tribal governments, for costs for enhanced 
     security personnel during significant national and 
     international public events;
       (G) operational costs, including reimbursement of State, 
     local, and tribal governments for costs for personnel 
     assigned to full-time or part-time security or 
     counterterrorism duties related to public transportation, 
     provided that this expense totals no more than 10 percent of 
     the total grant funds received by a public transportation 
     agency in any 1 year; and
       (H) other operational security costs determined appropriate 
     by the Secretary, excluding routine, ongoing personnel costs, 
     other than those set forth in this section.
       (c) Department of Homeland Security Responsibilities.--In 
     carrying out the responsibilities under subsection (a), the 
     Secretary shall--
       (1) determine the requirements for recipients of grants 
     under this section, including application requirements;
       (2) pursuant to subsection (a)(2), select the recipients of 
     grants based solely on risk; and
       (3) pursuant to subsection (b), establish the priorities 
     for which grant funds may be used under this section.
       (d) Distribution of Grants.--Not later than 90 days after 
     the date of enactment of this Act, the Secretary and the 
     Secretary of Transportation shall determine the most 
     effective and efficient way to distribute grant funds to the 
     recipients of grants determined by the Secretary under 
     subsection (a). Subject to the determination made by the 
     Secretaries, the Secretary may transfer funds to the 
     Secretary of Transportation for the purposes of disbursing 
     funds to the grant recipient.
       (e) Subject to Certain Terms and Conditions.--Except as 
     otherwise specifically provided in this section, a grant 
     provided under this section shall be subject to the terms and 
     conditions applicable to a grant made under section 5307 of 
     title 49, United States Code, as in effect on January 1, 
     2007, and such other terms and conditions as are determined 
     necessary by the Secretary.
       (f) Limitation on Uses of Funds.--Grants made under this 
     section may not be used to make any State or local government 
     cost-sharing contribution under any other Federal law.
       (g) Annual Reports.--Each recipient of a grant under this 
     section shall report annually to the Secretary on the use of 
     the grant funds.
       (h) Guidelines.--Before distribution of funds to recipients 
     of grants, the Secretary shall issue guidelines to ensure 
     that, to the extent that recipients of grants under this 
     section use contractors or subcontractors, such recipients 
     shall use small, minority, women-owned, or disadvantaged 
     business concerns as contractors or subcontractors to the 
     extent practicable.
       (i) Coordination With State Homeland Security Plans.--In 
     establishing security improvement priorities under section 
     1405 and in awarding grants for capital security improvements 
     and operational security improvements under subsection (b), 
     the Secretary shall act consistently with relevant State 
     homeland security plans.
       (j) Multistate Transportation Systems.--In cases in which a 
     public transportation system operates in more than one State, 
     the Secretary shall give appropriate consideration to the 
     risks of the entire system, including those portions of the 
     States into which the system crosses, in establishing 
     security improvement priorities under section 1405 and in 
     awarding grants for capital security improvements and 
     operational security improvements under subsection (b).
       (k) Congressional Notification.--Not later than 3 days 
     before the award of any grant under this section, the 
     Secretary shall notify simultaneously, the appropriate 
     congressional committees of the intent to award such grant.
       (l) Return of Misspent Grant Funds.--The Secretary shall 
     establish a process to require the return of any misspent 
     grant funds received under this section determined to have 
     been spent for a purpose other than those specified in the 
     grant award.
       (m) Authorization of Appropriations.--
       (1) There are authorized to be appropriated to the 
     Secretary to make grants under this section--
       (A) such sums as are necessary for fiscal year 2007;
       (B) $650,000,000 for fiscal year 2008, except that not more 
     than 50 percent of such funds may be used for operational 
     costs under subsection (b)(2);
       (C) $750,000,000 for fiscal year 2009, except that not more 
     than 30 percent of such funds may be used for operational 
     costs under subsection (b)(2);
       (D) $900,000,000 for fiscal year 2010, except that not more 
     than 20 percent of such funds may be used for operational 
     costs under subsection (b)(2); and
       (E) $1,100,000,000 for fiscal year 2011, except that not 
     more than 10 percent of such funds may be used for 
     operational costs under subsection (b)(2).
       (2) Period of availability.--Sums appropriated to carry out 
     this section shall remain available until expended.
       (3) Waiver.--The Secretary may waive the limitation on 
     operational costs specified in subparagraphs (B) through (E) 
     of paragraph (1) if the Secretary determines that such a 
     waiver is required in the interest of national security, and 
     if the Secretary provides a written justification to the 
     appropriate congressional committees prior to any such 
     action.
       (4) Effective date.--Funds provided for fiscal year 2007 
     transit security grants under Public Law 110-28 shall be 
     allocated based on security assessments that are in existence 
     as of the date of enactment of this Act.

     SEC. 1407. SECURITY EXERCISES.

       (a) In General.--The Secretary shall establish a program 
     for conducting security exercises for public transportation 
     agencies for the purpose of assessing and improving the 
     capabilities of entities described in subsection (b) to 
     prevent, prepare for, mitigate against, respond to, and 
     recover from acts of terrorism.
       (b) Covered Entities.--Entities to be assessed under the 
     program shall include--
       (1) Federal, State, and local agencies and tribal 
     governments;
       (2) public transportation agencies;
       (3) governmental and nongovernmental emergency response 
     providers and law enforcement personnel, including transit 
     police; and
       (4) any other organization or entity that the Secretary 
     determines appropriate.
       (c) Requirements.--The Secretary shall ensure that the 
     program--
       (1) requires, for public transportation agencies which the 
     Secretary deems appropriate, exercises to be conducted that 
     are--
       (A) scaled and tailored to the needs of specific public 
     transportation systems, and include taking into account the 
     needs of the elderly and individuals with disabilities;
       (B) live;
       (C) coordinated with appropriate officials;
       (D) as realistic as practicable and based on current risk 
     assessments, including credible threats, vulnerabilities, and 
     consequences;
       (E) inclusive, as appropriate, of frontline employees and 
     managers; and
       (F) consistent with the National Incident Management 
     System, the National Response Plan, the National 
     Infrastructure Protection Plan, the National Preparedness 
     Guidance, the National Preparedness Goal, and other such 
     national initiatives;
       (2) provides that exercises described in paragraph (1) will 
     be--
       (A) evaluated by the Secretary against clear and consistent 
     performance measures;
       (B) assessed by the Secretary to learn best practices, 
     which shall be shared with appropriate Federal, State, local, 
     and tribal officials, governmental and nongovernmental 
     emergency response providers, law enforcement personnel, 
     including railroad and transit police, and appropriate 
     stakeholders; and
       (C) followed by remedial action by covered entities in 
     response to lessons learned;
       (3) involves individuals in neighborhoods around the 
     infrastructure of a public transportation system; and
       (4) assists State, local, and tribal governments and public 
     transportation agencies in designing, implementing, and 
     evaluating exercises that conform to the requirements of 
     paragraph (2).
       (d) National Exercise Program.--The Secretary shall ensure 
     that the exercise program developed under subsection (a) is a 
     component of the National Exercise Program established under 
     section 648 of the Post Katrina Emergency Management Reform 
     Act (Public Law 109-295; 6 U.S.C. 748).
       (e) Ferry System Exemption.--This section does not apply to 
     any ferry system for which drills are required to be 
     conducted pursuant to section 70103 of title 46, United 
     States Code.

     SEC. 1408. PUBLIC TRANSPORTATION SECURITY TRAINING PROGRAM.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall develop and issue 
     detailed interim final regulations, and not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     develop and issue detailed final regulations, for a public 
     transportation security training program to prepare public 
     transportation employees, including frontline employees, for 
     potential security threats and conditions.
       (b) Consultation.--The Secretary shall develop the interim 
     final and final regulations under subsection (a) in 
     consultation with--
       (1) appropriate law enforcement, fire service, security, 
     and terrorism experts;
       (2) representatives of public transportation agencies; and

[[Page 20682]]

       (3) nonprofit employee labor organizations representing 
     public transportation employees or emergency response 
     personnel.
       (c) Program Elements.--The interim final and final 
     regulations developed under subsection (a) shall require 
     security training programs to include, at a minimum, elements 
     to address the following:
       (1) Determination of the seriousness of any occurrence or 
     threat.
       (2) Crew and passenger communication and coordination.
       (3) Appropriate responses to defend oneself, including 
     using nonlethal defense devices.
       (4) Use of personal protective devices and other protective 
     equipment.
       (5) Evacuation procedures for passengers and employees, 
     including individuals with disabilities and the elderly.
       (6) Training related to behavioral and psychological 
     understanding of, and responses to, terrorist incidents, 
     including the ability to cope with hijacker behavior, and 
     passenger responses.
       (7) Live situational training exercises regarding various 
     threat conditions, including tunnel evacuation procedures.
       (8) Recognition and reporting of dangerous substances and 
     suspicious packages, persons, and situations.
       (9) Understanding security incident procedures, including 
     procedures for communicating with governmental and 
     nongovernmental emergency response providers and for on scene 
     interaction with such emergency response providers.
       (10) Operation and maintenance of security equipment and 
     systems.
       (11) Other security training activities that the Secretary 
     deems appropriate.
       (d) Required Programs.--
       (1) Development and submission to secretary.--Not later 
     than 90 days after a public transportation agency meets the 
     requirements under subsection (e), each such public 
     transportation agency shall develop a security training 
     program in accordance with the regulations developed under 
     subsection (a) and submit the program to the Secretary for 
     approval.
       (2) Approval.--Not later than 60 days after receiving a 
     security training program proposal under this subsection, the 
     Secretary shall approve the program or require the public 
     transportation agency that developed the program to make any 
     revisions to the program that the Secretary determines 
     necessary for the program to meet the requirements of the 
     regulations. A public transportation agency shall respond to 
     the Secretary's comments within 30 days after receiving them.
       (3) Training.--Not later than 1 year after the Secretary 
     approves a security training program proposal in accordance 
     with this subsection, the public transportation agency that 
     developed the program shall complete the training of all 
     employees covered under the program.
       (4) Updates of regulations and program revisions.--The 
     Secretary shall periodically review and update, as 
     appropriate, the training regulations issued under subsection 
     (a) to reflect new or changing security threats. Each public 
     transportation agency shall revise its training program 
     accordingly and provide additional training as necessary to 
     its workers within a reasonable time after the regulations 
     are updated.
       (e) Applicability.--A public transportation agency that 
     receives a grant award under this title shall be required to 
     develop and implement a security training program pursuant to 
     this section.
       (f) Long-Term Training Requirement.--Any public 
     transportation agency required to develop a security training 
     program pursuant to this section shall provide routine and 
     ongoing training for employees covered under the program, 
     regardless of whether the public transportation agency 
     receives subsequent grant awards.
       (g) National Training Program.--The Secretary shall ensure 
     that the training program developed under subsection (a) is a 
     component of the National Training Program established under 
     section 648 of the Post Katrina Emergency Management Reform 
     Act (Public Law 109-295; 6 U.S.C. 748).
       (h) Ferry Exemption.--This section shall not apply to any 
     ferry system for which training is required to be conducted 
     pursuant to section 70103 of title 46, United States Code.
       (i) Report.--Not later than 2 years after the date of 
     issuance of the final regulation, the Comptroller General 
     shall review implementation of the training program, 
     including interviewing a representative sample of public 
     transportation agencies and employees, and report to the 
     appropriate congressional committees, on the number of 
     reviews conducted and the results. The Comptroller General 
     may submit the report in both classified and redacted formats 
     as necessary.

     SEC. 1409. PUBLIC TRANSPORTATION RESEARCH AND DEVELOPMENT.

       (a) Establishment of Research and Development Program.--The 
     Secretary shall carry out a research and development program 
     through the Homeland Security Advanced Research Projects 
     Agency in the Science and Technology Directorate and in 
     consultation with the Transportation Security Administration 
     and with the Federal Transit Administration, for the purpose 
     of improving the security of public transportation systems.
       (b) Grants and Contracts Authorized.--The Secretary shall 
     award grants or contracts to public or private entities to 
     conduct research and demonstrate technologies and methods to 
     reduce and deter terrorist threats or mitigate damages 
     resulting from terrorist attacks against public 
     transportation systems.
       (c) Use of Funds.--Grants or contracts awarded under 
     subsection (a)--
       (1) shall be coordinated with activities of the Homeland 
     Security Advanced Research Projects Agency; and
       (2) may be used to--
       (A) research chemical, biological, radiological, or 
     explosive detection systems that do not significantly impede 
     passenger access;
       (B) research imaging technologies;
       (C) conduct product evaluations and testing;
       (D) improve security and redundancy for critical 
     communications, electrical power, and computer and train 
     control systems;
       (E) develop technologies for securing tunnels, transit 
     bridges and aerial structures;
       (F) research technologies that mitigate damages in the 
     event of a cyber attack; and
       (G) research other technologies or methods for reducing or 
     deterring terrorist attacks against public transportation 
     systems, or mitigating damage from such attacks.
       (d) Privacy and Civil Rights and Civil Liberties Issues.--
       (1) Consultation.--In carrying out research and development 
     projects under this section, the Secretary shall consult with 
     the Chief Privacy Officer of the Department and the Officer 
     for Civil Rights and Civil Liberties of the Department, as 
     appropriate, and in accordance with section 222 of the 
     Homeland Security Act of 2002 (6 U.S.C. 142).
       (2) Privacy impact assessments.--In accordance with 
     sections 222 and 705 of the Homeland Security Act of 2002 (6 
     U.S.C. 142; 345), the Chief Privacy Officer shall conduct 
     privacy impact assessments and the Officer for Civil Rights 
     and Civil Liberties shall conduct reviews, as appropriate, 
     for research and development initiatives developed under this 
     section.
       (e) Reporting Requirement.--Each entity that is awarded a 
     grant or contract under this section shall report annually to 
     the Department on the use of grant or contract funds received 
     under this section to ensure that the awards made are 
     expended in accordance with the purposes of this title and 
     the priorities developed by the Secretary.
       (f) Coordination.--The Secretary shall ensure that the 
     research is consistent with the priorities established in the 
     National Strategy for Public Transportation Security and is 
     coordinated, to the extent practicable, with other Federal, 
     State, local, tribal, and private sector public 
     transportation, railroad, commuter railroad, and over-the-
     road bus research initiatives to leverage resources and avoid 
     unnecessary duplicative efforts.
       (g) Return of Misspent Grant or Contract Funds.--If the 
     Secretary determines that a grantee or contractor used any 
     portion of the grant or contract funds received under this 
     section for a purpose other than the allowable uses specified 
     under subsection (c), the grantee or contractor shall return 
     any amount so used to the Treasury of the United States.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to make grants under this 
     section--
       (1) such sums as necessary for fiscal year 2007;
       (2) $25,000,000 for fiscal year 2008;
       (3) $25,000,000 for fiscal year 2009;
       (4) $25,000,000 for fiscal year 2010; and
       (5) $25,000,000 for fiscal year 2011.

     SEC. 1410. INFORMATION SHARING.

       (a) Intelligence Sharing.--The Secretary shall ensure that 
     the Department of Transportation receives appropriate and 
     timely notification of all credible terrorist threats against 
     public transportation assets in the United States.
       (b) Information Sharing Analysis Center.--
       (1) Authorization.--The Secretary shall provide for the 
     reasonable costs of the Information Sharing and Analysis 
     Center for Public Transportation (referred to in this 
     subsection as the ``ISAC'').
       (2) Participation.--The Secretary--
       (A) shall require public transportation agencies that the 
     Secretary determines to be at high risk of terrorist attack 
     to participate in the ISAC;
       (B) shall encourage all other public transportation 
     agencies to participate in the ISAC;
       (C) shall encourage the participation of nonprofit employee 
     labor organizations representing public transportation 
     employees, as appropriate; and
       (D) shall not charge a fee for participating in the ISAC.
       (c) Report.--The Comptroller General shall report, not less 
     than 3 years after the date of enactment of this Act, to the 
     appropriate congressional committees, as to the value and 
     efficacy of the ISAC along with any other public 
     transportation information-sharing programs ongoing at the 
     Department. The report shall include an analysis of the user 
     satisfaction of public transportation agencies on the state 
     of information-sharing and the value that each system 
     provides the user, the costs and benefits of all centers and 
     programs, the coordination among centers and programs, how 
     each center or program contributes to implementing the 
     information sharing plan under section 1203, and analysis of 
     the extent to which the ISAC is duplicative with the 
     Department's information-sharing program.
       (d) Authorization.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary to carry out this section--
       (A) $600,000 for fiscal year 2008;
       (B) $600,000 for fiscal year 2009;
       (C) $600,000 for fiscal year 2010; and

[[Page 20683]]

       (D) such sums as may be necessary for 2011, provided the 
     report required in subsection (c) of this section has been 
     submitted to Congress.
       (2) Availability of funds.--Such sums shall remain 
     available until expended.

     SEC. 1411. THREAT ASSESSMENTS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall complete a name-based security 
     background check against the consolidated terrorist watchlist 
     and an immigration status check for all public transportation 
     frontline employees, similar to the threat assessment 
     screening program required for facility employees and 
     longshoremen by the Commandant of the Coast Guard under Coast 
     Guard Notice USCG-2006-24189 (71 Fed. Reg. 25066 (April 8, 
     2006)).

     SEC. 1412. REPORTING REQUIREMENTS.

       (a) Annual Report to Congress.--
       (1) In general.--Not later than March 31st of each year, 
     the Secretary shall submit a report, containing the 
     information described in paragraph (2), to the appropriate 
     congressional committees.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) a description of the implementation of the provisions 
     of this title;
       (B) the amount of funds appropriated to carry out the 
     provisions of this title that have not been expended or 
     obligated;
       (C) the National Strategy for Public Transportation 
     Security required under section 1404;
       (D) an estimate of the cost to implement the National 
     Strategy for Public Transportation Security which shall break 
     out the aggregated total cost of needed capital and 
     operational security improvements for fiscal years 2008-2018; 
     and
       (E) the state of public transportation security in the 
     United States, which shall include detailing the status of 
     security assessments, the progress being made around the 
     country in developing prioritized lists of security 
     improvements necessary to make public transportation 
     facilities and passengers more secure, the progress being 
     made by agencies in developing security plans and how those 
     plans differ from the security assessments and a prioritized 
     list of security improvements being compiled by other 
     agencies, as well as a random sample of an equal number of 
     large- and small-scale projects currently underway.
       (3) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.
       (b) Annual Report to Governors.--
       (1) In general.--Not later than March 31 of each year, the 
     Secretary shall submit a report to the Governor of each State 
     with a public transportation agency that has received a grant 
     under this Act.
       (2) Contents.--The report submitted under paragraph (1) 
     shall specify--
       (A) the amount of grant funds distributed to each such 
     public transportation agency; and
       (B) the use of such grant funds.

     SEC. 1413. PUBLIC TRANSPORTATION EMPLOYEE PROTECTIONS.

       (a) In General.--A public transportation agency, a 
     contractor or a subcontractor of such agency, or an officer 
     or employee of such agency, shall not discharge, demote, 
     suspend, reprimand, or in any other way discriminate against 
     an employee if such discrimination is due, in whole or in 
     part, to the employee's lawful, good faith act done, or 
     perceived by the employer to have been done or about to be 
     done--
       (1) to provide information, directly cause information to 
     be provided, or otherwise directly assist in any 
     investigation regarding any conduct which the employee 
     reasonably believes constitutes a violation of any Federal 
     law, rule, or regulation relating to public transportation 
     safety or security, or fraud, waste, or abuse of Federal 
     grants or other public funds intended to be used for public 
     transportation safety or security, if the information or 
     assistance is provided to or an investigation stemming from 
     the provided information is conducted by--
       (A) a Federal, State, or local regulatory or law 
     enforcement agency (including an office of the Inspector 
     General under the Inspector General Act of 1978 (5 U.S.C. 
     App.; Public Law 95-452);
       (B) any Member of Congress, any Committee of Congress, or 
     the Government Accountability Office; or
       (C) a person with supervisory authority over the employee 
     or such other person who has the authority to investigate, 
     discover, or terminate the misconduct;
       (2) to refuse to violate or assist in the violation of any 
     Federal law, rule, or regulation relating to public 
     transportation safety or security;
       (3) to file a complaint or directly cause to be brought a 
     proceeding related to the enforcement of this section or to 
     testify in that proceeding;
       (4) to cooperate with a safety or security investigation by 
     the Secretary of Transportation, the Secretary of Homeland 
     Security, or the National Transportation Safety Board; or
       (5) to furnish information to the Secretary of 
     Transportation, the Secretary of Homeland Security, the 
     National Transportation Safety Board, or any Federal, State, 
     or local regulatory or law enforcement agency as to the facts 
     relating to any accident or incident resulting in injury or 
     death to an individual or damage to property occurring in 
     connection with public transportation.
       (b) Hazardous Safety or Security Conditions.--(1) A public 
     transportation agency, or a contractor or a subcontractor of 
     such agency, or an officer or employee of such agency, shall 
     not discharge, demote, suspend, reprimand, or in any other 
     way discriminate against an employee for--
       (A) reporting a hazardous safety or security condition;
       (B) refusing to work when confronted by a hazardous safety 
     or security condition related to the performance of the 
     employee's duties, if the conditions described in paragraph 
     (2) exist; or
       (C) refusing to authorize the use of any safety- or 
     security-related equipment, track, or structures, if the 
     employee is responsible for the inspection or repair of the 
     equipment, track, or structures, when the employee believes 
     that the equipment, track, or structures are in a hazardous 
     safety or security condition, if the conditions described in 
     paragraph (2) of this subsection exist.
       (2) A refusal is protected under paragraph (1)(B) and (C) 
     if--
       (A) the refusal is made in good faith and no reasonable 
     alternative to the refusal is available to the employee;
       (B) a reasonable individual in the circumstances then 
     confronting the employee would conclude that--
       (i) the hazardous condition presents an imminent danger of 
     death or serious injury; and
       (ii) the urgency of the situation does not allow sufficient 
     time to eliminate the danger without such refusal; and
       (C) the employee, where possible, has notified the public 
     transportation agency of the existence of the hazardous 
     condition and the intention not to perform further work, or 
     not to authorize the use of the hazardous equipment, track, 
     or structures, unless the condition is corrected immediately 
     or the equipment, track, or structures are repaired properly 
     or replaced.
       (3) In this subsection, only subsection (b)(1)(A) shall 
     apply to security personnel, including transit police, 
     employed or utilized by a public transportation agency to 
     protect riders, equipment, assets, or facilities.
       (c) Enforcement Action.--
       (1) Filing and notification.--A person who believes that he 
     or she has been discharged or otherwise discriminated against 
     by any person in violation of subsection (a) or (b) may, not 
     later than 180 days after the date on which such violation 
     occurs, file (or have any person file on his or her behalf) a 
     complaint with the Secretary of Labor alleging such discharge 
     or discrimination. Upon receipt of a complaint filed under 
     this paragraph, the Secretary of Labor shall notify, in 
     writing, the person named in the complaint and the person's 
     employer of the filing of the complaint, of the allegations 
     contained in the complaint, of the substance of evidence 
     supporting the complaint, and of the opportunities that will 
     be afforded to such person under paragraph (2).
       (2) Investigation; preliminary order.--
       (A) In general.--Not later than 60 days after the date of 
     receipt of a complaint filed under paragraph (1) and after 
     affording the person named in the complaint an opportunity to 
     submit to the Secretary of Labor a written response to the 
     complaint and an opportunity to meet with a representative of 
     the Secretary of Labor to present statements from witnesses, 
     the Secretary of Labor shall conduct an investigation and 
     determine whether there is reasonable cause to believe that 
     the complaint has merit and notify, in writing, the 
     complainant and the person alleged to have committed a 
     violation of subsection (a) or (b) of the Secretary of 
     Labor's findings. If the Secretary of Labor concludes that 
     there is a reasonable cause to believe that a violation of 
     subsection (a) or (b) has occurred, the Secretary of Labor 
     shall accompany the Secretary of Labor's findings with a 
     preliminary order providing the relief prescribed by 
     paragraph (3)(B). Not later than 30 days after the date of 
     notification of findings under this paragraph, either the 
     person alleged to have committed the violation or the 
     complainant may file objections to the findings or 
     preliminary order, or both, and request a hearing on the 
     record. The filing of such objections shall not operate to 
     stay any reinstatement remedy contained in the preliminary 
     order. Such hearings shall be conducted expeditiously. If a 
     hearing is not requested in such 30-day period, the 
     preliminary order shall be deemed a final order that is not 
     subject to judicial review.
       (B) Requirements.--
       (i) Required showing by complainant.--The Secretary of 
     Labor shall dismiss a complaint filed under this subsection 
     and shall not conduct an investigation otherwise required 
     under subparagraph (A) unless the complainant makes a prima 
     facie showing that any behavior described in subsection (a) 
     or (b) was a contributing factor in the unfavorable personnel 
     action alleged in the complaint.
       (ii) Showing by employer.--Notwithstanding a finding by the 
     Secretary of Labor that the complainant has made the showing 
     required under clause (i), no investigation otherwise 
     required under paragraph (A) shall be conducted if the 
     employer demonstrates, by clear and convincing evidence, that 
     the employer would have taken the same unfavorable personnel 
     action in the absence of that behavior.
       (iii) Criteria for determination by secretary of labor.--
     The Secretary of Labor may determine that a violation of 
     subsection (a) or (b) has occurred only if the complainant 
     demonstrates that any behavior described in subsection (a) or 
     (b) was a contributing factor in the unfavorable personnel 
     action alleged in the complaint.
       (iv) Prohibition.--Relief may not be ordered under 
     paragraph (A) if the employer demonstrates by clear and 
     convincing evidence that

[[Page 20684]]

     the employer would have taken the same unfavorable personnel 
     action in the absence of that behavior.
       (3) Final order.--
       (A) Deadline for issuance; settlement agreements.--Not 
     later than 120 days after the date of conclusion of a hearing 
     under paragraph (2), the Secretary of Labor shall issue a 
     final order providing the relief prescribed by this paragraph 
     or denying the complaint. At any time before issuance of a 
     final order, a proceeding under this subsection may be 
     terminated on the basis of a settlement agreement entered 
     into by the Secretary of Labor, the complainant, and the 
     person alleged to have committed the violation.
       (B) Remedy.--If, in response to a complaint filed under 
     paragraph (1), the Secretary of Labor determines that a 
     violation of subsection (a) or (b) has occurred, the 
     Secretary of Labor shall order the person who committed such 
     violation to--
       (i) take affirmative action to abate the violation; and
       (ii) provide the remedies described in subsection (d).
       (C) Order.--If an order is issued under subparagraph (B), 
     the Secretary of Labor, at the request of the complainant, 
     shall assess against the person against whom the order is 
     issued a sum equal to the aggregate amount of all costs and 
     expenses (including attorney and expert witness fees) 
     reasonably incurred, as determined by the Secretary of Labor, 
     by the complainant for, or in connection with, bringing the 
     complaint upon which the order was issued.
       (D) Frivolous complaints.--If the Secretary of Labor finds 
     that a complaint under paragraph (1) is frivolous or has been 
     brought in bad faith, the Secretary of Labor may award to the 
     prevailing employer reasonable attorney fees not exceeding 
     $1,000.
       (4) Review.--
       (A) Appeal to court of appeals.--Any person adversely 
     affected or aggrieved by an order issued under paragraph (3) 
     may obtain review of the order in the United States Court of 
     Appeals for the circuit in which the violation, with respect 
     to which the order was issued, allegedly occurred or the 
     circuit in which the complainant resided on the date of such 
     violation. The petition for review must be filed not later 
     than 60 days after the date of the issuance of the final 
     order of the Secretary of Labor. Review shall conform to 
     chapter 7 of title 5, United States Code. The commencement of 
     proceedings under this subparagraph shall not, unless ordered 
     by the court, operate as a stay of the order.
       (B) Limitation on collateral attack.--An order of the 
     Secretary of Labor with respect to which review could have 
     been obtained under subparagraph (A) shall not be subject to 
     judicial review in any criminal or other civil proceeding.
       (5) Enforcement of order by secretary of labor.--Whenever 
     any person has failed to comply with an order issued under 
     paragraph (3), the Secretary of Labor may file a civil action 
     in the United States district court for the district in which 
     the violation was found to occur to enforce such order. In 
     actions brought under this paragraph, the district courts 
     shall have jurisdiction to grant all appropriate relief 
     including, but not limited to, injunctive relief and 
     compensatory damages.
       (6) Enforcement of order by parties.--
       (A) Commencement of action.--A person on whose behalf an 
     order was issued under paragraph (3) may commence a civil 
     action against the person to whom such order was issued to 
     require compliance with such order. The appropriate United 
     States district court shall have jurisdiction, without regard 
     to the amount in controversy or the citizenship of the 
     parties, to enforce such order.
       (B) Attorney fees.--The court, in issuing any final order 
     under this paragraph, may award costs of litigation 
     (including reasonable attorney and expert witness fees) to 
     any party whenever the court determines such award is 
     appropriate.
       (7) De novo review.--With respect to a complaint under 
     paragraph (1), if the Secretary of Labor has not issued a 
     final decision within 210 days after the filing of the 
     complaint and if the delay is not due to the bad faith of the 
     employee, the employee may bring an original action at law or 
     equity for de novo review in the appropriate district court 
     of the United States, which shall have jurisdiction over such 
     an action without regard to the amount in controversy, and 
     which action shall, at the request of either party to such 
     action, be tried by the court with a jury. The action shall 
     be governed by the same legal burdens of proof specified in 
     paragraph (2)(B) for review by the Secretary of Labor.
       (d) Remedies.--
       (1) In general.--An employee prevailing in any action under 
     subsection (c) shall be entitled to all relief necessary to 
     make the employee whole.
       (2) Damages.--Relief in an action under subsection (c) 
     (including an action described in (c)(7)) shall include--
       (A) reinstatement with the same seniority status that the 
     employee would have had, but for the discrimination;
       (B) any backpay, with interest; and
       (C) compensatory damages, including compensation for any 
     special damages sustained as a result of the discrimination, 
     including litigation costs, expert witness fees, and 
     reasonable attorney fees.
       (3) Possible relief.--Relief in any action under subsection 
     (c) may include punitive damages in an amount not to exceed 
     $250,000.
       (e) Election of Remedies.--An employee may not seek 
     protection under both this section and another provision of 
     law for the same allegedly unlawful act of the public 
     transportation agency.
       (f) No Preemption.--Nothing in this section preempts or 
     diminishes any other safeguards against discrimination, 
     demotion, discharge, suspension, threats, harassment, 
     reprimand, retaliation, or any other manner of discrimination 
     provided by Federal or State law.
       (g) Rights Retained by Employee.--Nothing in this section 
     shall be construed to diminish the rights, privileges, or 
     remedies of any employee under any Federal or State law or 
     under any collective bargaining agreement. The rights and 
     remedies in this section may not be waived by any agreement, 
     policy, form, or condition of employment.
       (h) Disclosure of Identity.--
       (1) Except as provided in paragraph (2) of this subsection, 
     or with the written consent of the employee, the Secretary of 
     Transportation or the Secretary of Homeland Security may not 
     disclose the name of an employee who has provided information 
     described in subsection (a)(1).
       (2) The Secretary of Transportation or the Secretary of 
     Homeland Security shall disclose to the Attorney General the 
     name of an employee described in paragraph (1) of this 
     subsection if the matter is referred to the Attorney General 
     for enforcement. The Secretary making such disclosure shall 
     provide reasonable advance notice to the affected employee if 
     disclosure of that person's identity or identifying 
     information is to occur.
       (i) Process for Reporting Security Problems to the 
     Department of Homeland Security.--
       (1) Establishment of process.--The Secretary shall 
     establish through regulations after an opportunity for notice 
     and comment, and provide information to the public regarding, 
     a process by which any person may submit a report to the 
     Secretary regarding public transportation security problems, 
     deficiencies, or vulnerabilities.
       (2) Acknowledgment of receipt.--If a report submitted under 
     paragraph (1) identifies the person making the report, the 
     Secretary shall respond promptly to such person and 
     acknowledge receipt of the report.
       (3) Steps to address problem.--The Secretary shall review 
     and consider the information provided in any report submitted 
     under paragraph (1) and shall take appropriate steps to 
     address any problems or deficiencies identified.

     SEC. 1414. SECURITY BACKGROUND CHECKS OF COVERED INDIVIDUALS 
                   FOR PUBLIC TRANSPORTATION.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Security background check.--The term ``security 
     background check'' means reviewing the following for the 
     purpose of identifying individuals who may pose a threat to 
     transportation security, national security, or of terrorism:
       (A) Relevant criminal history databases.
       (B) In the case of an alien (as defined in section 101 of 
     the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))), 
     the relevant databases to determine the status of the alien 
     under the immigration laws of the United States.
       (C) Other relevant information or databases, as determined 
     by the Secretary.
       (2) Covered individual.--The term ``covered individual'' 
     means an employee of a public transportation agency or a 
     contractor or subcontractor of a public transportation 
     agency.
       (b) Guidance.--
       (1) Any guidance, recommendations, suggested action items, 
     or any other widely disseminated voluntary action item issued 
     by the Secretary to a public transportation agency or a 
     contractor or subcontractor of a public transportation agency 
     relating to performing a security background check of a 
     covered individual shall contain recommendations on the 
     appropriate scope and application of such a security 
     background check, including the time period covered, the 
     types of disqualifying offenses, and a redress process for 
     adversely impacted covered individuals consistent with 
     subsections (c) and (d) of this section.
       (2) Not later than 60 days after the date of enactment of 
     this Act, any guidance, recommendations, suggested action 
     items, or any other widely disseminated voluntary action item 
     issued by the Secretary prior to the date of enactment of 
     this Act to a public transportation agency or a contractor or 
     subcontractor of a public transportation agency relating to 
     performing a security background check of a covered 
     individual shall be updated in compliance with paragraph 
     (b)(1).
       (3) If a public transportation agency or a contractor or 
     subcontractor of a public transportation agency performs a 
     security background check on a covered individual to fulfill 
     guidance issued by the Secretary under paragraph (1) or (2), 
     the Secretary shall not consider such guidance fulfilled 
     unless an adequate redress process as described in subsection 
     (d) is provided to covered individuals.
       (c) Requirements.--If the Secretary issues a rule, 
     regulation or directive requiring a public transportation 
     agency or contractor or subcontractor of a public 
     transportation agency to perform a security background check 
     of a covered individual, then the Secretary shall prohibit a 
     public transportation agency or contractor or subcontractor 
     of a public transportation agency from making an adverse 
     employment decision, including removal or suspension of the 
     employee, due to such rule, regulation, or directive with 
     respect to a covered individual unless the

[[Page 20685]]

     public transportation agency or contractor or subcontractor 
     of a public transportation agency determines that the covered 
     individual--
       (1) has been convicted of, has been found not guilty of by 
     reason of insanity, or is under want, warrant, or indictment 
     for a permanent disqualifying criminal offense listed in part 
     1572 of title 49, Code of Federal Regulations;
       (2) was convicted of or found not guilty by reason of 
     insanity of an interim disqualifying criminal offense listed 
     in part 1572 of title 49, Code of Federal Regulations, within 
     7 years of the date that the public transportation agency or 
     contractor or subcontractor of the public transportation 
     agency performs the security background check; or
       (3) was incarcerated for an interim disqualifying criminal 
     offense listed in part 1572 of title 49, Code of Federal 
     Regulations, and released from incarceration within 5 years 
     of the date that the public transportation agency or 
     contractor or subcontractor of a public transportation agency 
     performs the security background check.
       (d) Redress Process.--If the Secretary issues a rule, 
     regulation, or directive requiring a public transportation 
     agency or contractor or subcontractor of a public 
     transportation agency to perform a security background check 
     of a covered individual, the Secretary shall--
       (1) provide an adequate redress process for a covered 
     individual subjected to an adverse employment decision, 
     including removal or suspension of the employee, due to such 
     rule, regulation, or directive that is consistent with the 
     appeals and waiver process established for applicants for 
     commercial motor vehicle hazardous materials endorsements and 
     transportation workers at ports, as required by section 
     70105(c) of title 49, United States Code; and
       (2) have the authority to order an appropriate remedy, 
     including reinstatement of the covered individual, should the 
     Secretary determine that a public transportation agency or 
     contractor or subcontractor of a public transportation agency 
     wrongfully made an adverse employment decision regarding a 
     covered individual pursuant to such rule, regulation, or 
     directive.
       (e) False Statements.--A public transportation agency or a 
     contractor or subcontractor of a public transportation agency 
     may not knowingly misrepresent to an employee or other 
     relevant person, including an arbiter involved in a labor 
     arbitration, the scope, application, or meaning of any rules, 
     regulations, directives, or guidance issued by the Secretary 
     related to security background check requirements for covered 
     individuals when conducting a security background check. Not 
     later than 1 year after the date of enactment of this Act, 
     the Secretary shall issue a regulation that prohibits a 
     public transportation agency or a contractor or subcontractor 
     of a public transportation agency from knowingly 
     misrepresenting to an employee or other relevant person, 
     including an arbiter involved in a labor arbitration, the 
     scope, application, or meaning of any rules, regulations, 
     directives, or guidance issued by the Secretary related to 
     security background check requirements for covered 
     individuals when conducting a security background check.
       (f) Rights and Responsibilities.--Nothing in this section 
     shall be construed to abridge a public transportation 
     agency's or a contractor or subcontractor of a public 
     transportation agency's rights or responsibilities to make 
     adverse employment decisions permitted by other Federal, 
     State, or local laws. Nothing in the section shall be 
     construed to abridge rights and responsibilities of covered 
     individuals, a public transportation agency, or a contractor 
     or subcontractor of a public transportation agency under any 
     other Federal, State, or local laws or collective bargaining 
     agreement.
       (g) No Preemption of Federal or State Law.--Nothing in this 
     section shall be construed to preempt a Federal, State, or 
     local law that requires criminal history background checks, 
     immigration status checks, or other background checks of 
     covered individuals.
       (h) Statutory Construction.--Nothing in this section shall 
     be construed to affect the process for review established 
     under section 70105(c) of title 46, United States Code, 
     including regulations issued pursuant to such section.

     SEC. 1415. LIMITATION ON FINES AND CIVIL PENALTIES.

       (a) Inspectors.--Surface transportation inspectors shall be 
     prohibited from issuing fines to public transportation 
     agencies for violations of the Department's regulations or 
     orders except through the process described in subsection 
     (b).
       (b) Civil Penalties.--The Secretary shall be prohibited 
     from assessing civil penalties against public transportation 
     agencies for violations of the Department's regulations or 
     orders, except in accordance with the following:
       (1) In the case of a public transportation agency that is 
     found to be in violation of a regulation or order issued by 
     the Secretary, the Secretary shall seek correction of the 
     violation through a written notice to the public 
     transportation agency and shall give the public 
     transportation agency reasonable opportunity to correct the 
     violation or propose an alternative means of compliance 
     acceptable to the Secretary.
       (2) If the public transportation agency does not correct 
     the violation or propose an alternative means of compliance 
     acceptable to the Secretary within a reasonable time period 
     that is specified in the written notice, the Secretary may 
     take any action authorized in section 114 of title 49, United 
     States Code, as amended by this Act.
       (c) Limitation on Secretary.--The Secretary shall not 
     initiate civil enforcement actions for violations of 
     administrative and procedural requirements pertaining to the 
     application for and expenditure of funds awarded under 
     transportation security grant programs under this title.

               TITLE XV--SURFACE TRANSPORTATION SECURITY

                     Subtitle A--General Provisions

     SEC. 1501. DEFINITIONS.

       In this title, the following definitions apply:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Commerce, Science, and Transportation and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Homeland Security and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (3) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (4) Over-the-road bus.--The term ``over-the-road bus'' 
     means a bus characterized by an elevated passenger deck 
     located over a baggage compartment.
       (5) Over-the-road bus frontline employees.--In this 
     section, the term ``over-the-road bus frontline employees'' 
     means over-the-road bus drivers, security personnel, 
     dispatchers, maintenance and maintenance support personnel, 
     ticket agents, other terminal employees, and other employees 
     of an over-the-road bus operator or terminal owner or 
     operator that the Secretary determines should receive 
     security training under this title.
       (6) Railroad frontline employees.--In this section, the 
     term ``railroad frontline employees'' means security 
     personnel, dispatchers, locomotive engineers, conductors, 
     trainmen, other onboard employees, maintenance and 
     maintenance support personnel, bridge tenders, and any other 
     employees of railroad carriers that the Secretary determines 
     should receive security training under this title.
       (7) Railroad.--The term ``railroad'' has the meaning that 
     term has in section 20102 of title 49, United States Code.
       (8) Railroad carrier.--The term ``railroad carrier'' has 
     the meaning that term has in section 20102 of title 49, 
     United States Code.
       (9) State.--The term ``State'' means any one of the 50 
     States, the District of Columbia, Puerto Rico, the Northern 
     Mariana Islands, the Virgin Islands, Guam, American Samoa, 
     and any other territory or possession of the United States.
       (10) Terrorism.--The term ``terrorism'' has the meaning 
     that term has in section 2 of the Homeland Security Act of 
     2002 (6 U.S.C. 101).
       (11) Transportation.--The term ``transportation'', as used 
     with respect to an over-the-road bus, means the movement of 
     passengers or property by an over-the-road bus--
       (A) in the jurisdiction of the United States between a 
     place in a State and a place outside the State (including a 
     place outside the United States); or
       (B) in a State that affects trade, traffic, and 
     transportation described in subparagraph (A).
       (12) United states.--The term ``United States'' means the 
     50 States, the District of Columbia, Puerto Rico, the 
     Northern Mariana Islands, the Virgin Islands, Guam, American 
     Samoa, and any other territory or possession of the United 
     States.
       (13) Security-sensitive material.--The term ``security-
     sensitive material'' means a material, or a group or class of 
     material, in a particular amount and form that the Secretary, 
     in consultation with the Secretary of Transportation, 
     determines, through a rulemaking with opportunity for public 
     comment, poses a significant risk to national security while 
     being transported in commerce due to the potential use of the 
     material in an act of terrorism. In making such a 
     designation, the Secretary shall, at a minimum, consider the 
     following:
       (A) Class 7 radioactive materials.
       (B) Division 1.1, 1.2, or 1.3 explosives.
       (C) Materials poisonous or toxic by inhalation, including 
     Division 2.3 gases and Division 6.1 materials.
       (D) A select agent or toxin regulated by the Centers for 
     Disease Control and Prevention under part 73 of title 42, 
     Code of Federal Regulations.
       (14) Disadvantaged business concerns.--The term 
     ``disadvantaged business concerns'' means small businesses 
     that are owned and controlled by socially and economically 
     disadvantaged individuals as defined in section 124, of title 
     13, Code of Federal Regulations.
       (15) Amtrak.--The term ``Amtrak'' means the National 
     Railroad Passenger Corporation.

     SEC. 1502. OVERSIGHT AND GRANT PROCEDURES.

       (a) Secretarial Oversight.--The Secretary, in coordination 
     with Secretary of Transportation for grants awarded to 
     Amtrak, shall establish necessary procedures, including 
     monitoring and audits, to ensure that grants made under this 
     title are expended in accordance with the purposes of this 
     title and the priorities and other criteria developed by the 
     Secretary.
       (b) Additional Audits and Reviews.--The Secretary, and the 
     Secretary of Transportation for grants awarded to Amtrak, may 
     award contracts to undertake additional audits and reviews of 
     the safety, security, procurement, management, and financial 
     compliance of a recipient of amounts under this title.
       (c) Procedures for Grant Award.--Not later than 180 days 
     after the date of enactment of this Act, the Secretary shall 
     prescribe procedures and schedules for the awarding of grants

[[Page 20686]]

     under this title, including application and qualification 
     procedures, and a record of decision on applicant 
     eligibility. The procedures shall include the execution of a 
     grant agreement between the grant recipient and the Secretary 
     and shall be consistent, to the extent practicable, with the 
     grant procedures established under section 70107(i) and (j) 
     of title 46, United States Code.
       (d) Additional Authority.--
       (1) Issuance.--The Secretary may issue non-binding letters 
     of intent to recipients of a grant under this title, to 
     commit funding from future budget authority of an amount, not 
     more than the Federal Government's share of the project's 
     cost, for a capital improvement project.
       (2) Schedule.--The letter of intent under this subsection 
     shall establish a schedule under which the Secretary will 
     reimburse the recipient for the Government's share of the 
     project's costs, as amounts become available, if the 
     recipient, after the Secretary issues that letter, carries 
     out the project without receiving amounts under a grant 
     issued under this title.
       (3) Notice to secretary.--A recipient that has been issued 
     a letter of intent under this section shall notify the 
     Secretary of the recipient's intent to carry out a project 
     before the project begins.
       (4) Notice to congress.--The Secretary shall transmit to 
     the appropriate congressional committees a written 
     notification at least 5 days before the issuance of a letter 
     of intent under this subsection.
       (5) Limitations.--A letter of intent issued under this 
     subsection is not an obligation of the Federal Government 
     under section 1501 of title 31, United States Code, and the 
     letter is not deemed to be an administrative commitment for 
     financing. An obligation or administrative commitment may be 
     made only as amounts are provided in authorization and 
     appropriations laws.
       (e) Return of Misspent Grant Funds.--As part of the grant 
     agreement under subsection (c), the Secretary shall require 
     grant applicants to return any misspent grant funds received 
     under this title that the Secretary considers to have been 
     spent for a purpose other than those specified in the grant 
     award. The Secretary shall take all necessary actions to 
     recover such funds.
       (f) Congressional Notification.--Not later than 5 days 
     before the award of any grant is made under this title, the 
     Secretary shall notify the appropriate congressional 
     committees of the intent to award such grant.
       (g) Guidelines.--The Secretary shall ensure, to the extent 
     practicable, that grant recipients under this title who use 
     contractors or subcontractors use small, minority, women-
     owned, or disadvantaged business concerns as contractors or 
     subcontractors when appropriate.

     SEC. 1503. AUTHORIZATION OF APPROPRIATIONS.

       (a) Transportation Security Administration Authorization.--
     Section 114 of title 49, United States Code, as amended by 
     section 1302 of this Act, is further amended by adding at the 
     end the following:
       ``(w) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security for--
       ``(1) railroad security--
       ``(A) $488,000,000 for fiscal year 2008;
       ``(B) $483,000,000 for fiscal year 2009;
       ``(C) $508,000,000 for fiscal year 2010; and
       ``(D) $508,000,000 for fiscal year 2011;
       ``(2) over-the-road bus and trucking security--
       ``(A) $14,000,000 for fiscal year 2008;
       ``(B) $27,000,000 for fiscal year 2009;
       ``(C) $27,000,000 for fiscal year 2010; and
       ``(D) $27,000,000 for fiscal year 2011; and
       ``(3) hazardous material and pipeline security--
       ``(A) $12,000,000 for fiscal year 2008;
       ``(B) $12,000,000 for fiscal year 2009; and
       ``(C) $12,000,000 for fiscal year 2010.''.
       (b) Department of Transportation.--There are authorized to 
     be appropriated to the Secretary of Transportation to carry 
     out section 1515--
       (1) $38,000,000 for fiscal year 2008;
       (2) $40,000,000 for fiscal year 2009;
       (3) $55,000,000 for fiscal year 2010; and
       (4) $70,000,000 for fiscal year 2011.

     SEC. 1504. PUBLIC AWARENESS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall develop a national plan for railroad 
     and over-the-road bus security public outreach and awareness. 
     Such a plan shall be designed to increase awareness of 
     measures that the general public, passengers, and employees 
     of railroad carriers and over-the-road bus operators can take 
     to increase the security of the national railroad and over-
     the-road bus transportation systems. Such a plan shall also 
     provide outreach to railroad carriers and over-the-road bus 
     operators and their employees to improve their awareness of 
     available technologies, ongoing research and development 
     efforts, and available Federal funding sources to improve 
     security. Not later than 9 months after the date of enactment 
     of this Act, the Secretary shall implement the plan developed 
     under this section.

                     Subtitle B--Railroad Security

     SEC. 1511. RAILROAD TRANSPORTATION SECURITY RISK ASSESSMENT 
                   AND NATIONAL STRATEGY.

       (a) Risk Assessment.--The Secretary shall establish a 
     Federal task force, including the Transportation Security 
     Administration and other agencies within the Department, the 
     Department of Transportation, and other appropriate Federal 
     agencies, to complete, within 6 months of the date of 
     enactment of this Act, a nationwide risk assessment of a 
     terrorist attack on railroad carriers. The assessment shall 
     include--
       (1) a methodology for conducting the risk assessment, 
     including timelines, that addresses how the Department will 
     work with the entities described in subsection (c) and make 
     use of existing Federal expertise within the Department, the 
     Department of Transportation, and other appropriate agencies;
       (2) identification and evaluation of critical assets and 
     infrastructure, including tunnels used by railroad carriers 
     in high-threat urban areas;
       (3) identification of risks to those assets and 
     infrastructure;
       (4) identification of risks that are specific to the 
     transportation of hazardous materials via railroad;
       (5) identification of risks to passenger and cargo 
     security, transportation infrastructure protection systems, 
     operations, communications systems, and any other area 
     identified by the assessment;
       (6) an assessment of employee training and emergency 
     response planning;
       (7) an assessment of public and private operational 
     recovery plans, taking into account the plans for the 
     maritime sector required under section 70103 of title 46, 
     United States Code, to expedite, to the maximum extent 
     practicable, the return of an adversely affected railroad 
     transportation system or facility to its normal performance 
     level after a major terrorist attack or other security event 
     on that system or facility; and
       (8) an account of actions taken or planned by both public 
     and private entities to address identified railroad security 
     issues and an assessment of the effective integration of such 
     actions.
       (b) National Strategy.--
       (1) Requirement.--Not later than 9 months after the date of 
     enactment of this Act and based upon the assessment conducted 
     under subsection (a), the Secretary, consistent with and as 
     required by section 114(t) of title 49, United States Code, 
     shall develop and implement the modal plan for railroad 
     transportation, entitled the ``National Strategy for Railroad 
     Transportation Security''.
       (2) Contents.--The modal plan shall include prioritized 
     goals, actions, objectives, policies, mechanisms, and 
     schedules for, at a minimum--
       (A) improving the security of railroad tunnels, railroad 
     bridges, railroad switching and car storage areas, other 
     railroad infrastructure and facilities, information systems, 
     and other areas identified by the Secretary as posing 
     significant railroad-related risks to public safety and the 
     movement of interstate commerce, taking into account the 
     impact that any proposed security measure might have on the 
     provision of railroad service or on operations served or 
     otherwise affected by railroad service;
       (B) deploying equipment and personnel to detect security 
     threats, including those posed by explosives and hazardous 
     chemical, biological, and radioactive substances, and any 
     appropriate countermeasures;
       (C) consistent with section 1517, training railroad 
     employees in terrorism prevention, preparedness, passenger 
     evacuation, and response activities;
       (D) conducting public outreach campaigns for railroads 
     regarding security, including educational initiatives 
     designed to inform the public on how to prevent, prepare for, 
     respond to, and recover from a terrorist attack on railroad 
     transportation;
       (E) providing additional railroad security support for 
     railroads at high or severe threat levels of alert;
       (F) ensuring, in coordination with freight and intercity 
     and commuter passenger railroads, the continued movement of 
     freight and passengers in the event of an attack affecting 
     the railroad system, including the possibility of rerouting 
     traffic due to the loss of critical infrastructure, such as a 
     bridge, tunnel, yard, or station;
       (G) coordinating existing and planned railroad security 
     initiatives undertaken by the public and private sectors;
       (H) assessing--
       (i) the usefulness of covert testing of railroad security 
     systems;
       (ii) the ability to integrate security into infrastructure 
     design; and
       (iii) the implementation of random searches of passengers 
     and baggage; and
       (I) identifying the immediate and long-term costs of 
     measures that may be required to address those risks and 
     public and private sector sources to fund such measures.
       (3) Responsibilities.--The Secretary shall include in the 
     modal plan a description of the roles, responsibilities, and 
     authorities of Federal, State, and local agencies, 
     government-sponsored entities, tribal governments, and 
     appropriate stakeholders described in subsection (c). The 
     plan shall also include--
       (A) the identification of, and a plan to address, gaps and 
     unnecessary overlaps in the roles, responsibilities, and 
     authorities described in this paragraph;
       (B) a methodology for how the Department will work with the 
     entities described in subsection (c), and make use of 
     existing Federal expertise within the Department, the 
     Department of Transportation, and other appropriate agencies;
       (C) a process for facilitating security clearances for the 
     purpose of intelligence and information sharing with the 
     entities described in subsection (c), as appropriate;
       (D) a strategy and timeline, coordinated with the research 
     and development program established under section 1518, for 
     the Department, the Department of Transportation, other 
     appropriate Federal agencies and private entities to

[[Page 20687]]

     research and develop new technologies for securing railroad 
     systems; and
       (E) a process for coordinating existing or future security 
     strategies and plans for railroad transportation, including 
     the National Infrastructure Protection Plan required by 
     Homeland Security Presidential Directive 7; Executive Order 
     Number 13416: ``Strengthening Surface Transportation 
     Security'' dated December 5, 2006; the Memorandum of 
     Understanding between the Department and the Department of 
     Transportation on Roles and Responsibilities dated September 
     28, 2004, and any and all subsequent annexes to this 
     Memorandum of Understanding, and any other relevant 
     agreements between the two Departments.
       (c) Consultation With Stakeholders.--In developing the 
     National Strategy required under this section, the Secretary 
     shall consult with railroad management, nonprofit employee 
     organizations representing railroad employees, owners or 
     lessors of railroad cars used to transport hazardous 
     materials, emergency responders, offerors of security-
     sensitive materials, public safety officials, and other 
     relevant parties.
       (d) Adequacy of Existing Plans and Strategies.--In 
     developing the risk assessment and National Strategy required 
     under this section, the Secretary shall utilize relevant 
     existing plans, strategies, and risk assessments developed by 
     the Department or other Federal agencies, including those 
     developed or implemented pursuant to section 114(t) of title 
     49, United States Code, or Homeland Security Presidential 
     Directive 7, and, as appropriate, assessments developed by 
     other public and private stakeholders.
       (e) Report.--
       (1) Contents.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     appropriate congressional committees a report containing--
       (A) the assessment and the National Strategy required by 
     this section; and
       (B) an estimate of the cost to implement the National 
     Strategy.
       (2) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.
       (f) Annual Updates.--Consistent with the requirements of 
     section 114(t) of title 49, United States Code, the Secretary 
     shall update the assessment and National Strategy each year 
     and transmit a report, which may be submitted in both 
     classified and redacted formats, to the appropriate 
     congressional committees containing the updated assessment 
     and recommendations.
       (g) Funding.--Out of funds appropriated pursuant to section 
     114(w) of title 49, United States Code, as amended by section 
     1503 of this title, there shall be made available to the 
     Secretary to carry out this section $5,000,000 for fiscal 
     year 2008.

     SEC. 1512. RAILROAD CARRIER ASSESSMENTS AND PLANS.

       (a) In General.--Not later than 12 months after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     that--
       (1) require each railroad carrier assigned to a high-risk 
     tier under this section to--
       (A) conduct a vulnerability assessment in accordance with 
     subsections (c) and (d); and
       (B) to prepare, submit to the Secretary for approval, and 
     implement a security plan in accordance with this section 
     that addresses security performance requirements; and
       (2) establish standards and guidelines, based on and 
     consistent with the risk assessment and National Strategy for 
     Railroad Transportation Security developed under section 
     1511, for developing and implementing the vulnerability 
     assessments and security plans for railroad carriers assigned 
     to high-risk tiers.
       (b) Non High-Risk Programs.--The Secretary may establish a 
     security program for railroad carriers not assigned to a 
     high-risk tier, including--
       (1) guidance for such carriers in conducting vulnerability 
     assessments and preparing and implementing security plans, as 
     determined appropriate by the Secretary; and
       (2) a process to review and approve such assessments and 
     plans, as appropriate.
       (c) Deadline for Submission.--Not later than 9 months after 
     the date of issuance of the regulations under subsection (a), 
     the vulnerability assessments and security plans required by 
     such regulations for railroad carriers assigned to a high-
     risk tier shall be completed and submitted to the Secretary 
     for review and approval.
       (d) Vulnerability Assessments.--
       (1) Requirements.--The Secretary shall provide technical 
     assistance and guidance to railroad carriers in conducting 
     vulnerability assessments under this section and shall 
     require that each vulnerability assessment of a railroad 
     carrier assigned to a high-risk tier under this section, 
     include, as applicable--
       (A) identification and evaluation of critical railroad 
     carrier assets and infrastructure, including platforms, 
     stations, intermodal terminals, tunnels, bridges, switching 
     and storage areas, and information systems as appropriate;
       (B) identification of the vulnerabilities to those assets 
     and infrastructure;
       (C) identification of strengths and weaknesses in--
       (i) physical security;
       (ii) passenger and cargo security, including the security 
     of security-sensitive materials being transported by railroad 
     or stored on railroad property;
       (iii) programmable electronic devices, computers, or other 
     automated systems which are used in providing the 
     transportation;
       (iv) alarms, cameras, and other protection systems;
       (v) communications systems and utilities needed for 
     railroad security purposes, including dispatching and 
     notification systems;
       (vi) emergency response planning;
       (vii) employee training; and
       (viii) such other matters as the Secretary determines 
     appropriate; and
       (D) identification of redundant and backup systems required 
     to ensure the continued operation of critical elements of a 
     railroad carrier's system in the event of an attack or other 
     incident, including disruption of commercial electric power 
     or communications network.
       (2) Threat information.--The Secretary shall provide in a 
     timely manner to the appropriate employees of a railroad 
     carrier, as designated by the railroad carrier, threat 
     information that is relevant to the carrier when preparing 
     and submitting a vulnerability assessment and security plan, 
     including an assessment of the most likely methods that could 
     be used by terrorists to exploit weaknesses in railroad 
     security.
       (e) Security Plans.--
       (1) Requirements.--The Secretary shall provide technical 
     assistance and guidance to railroad carriers in preparing and 
     implementing security plans under this section, and shall 
     require that each security plan of a railroad carrier 
     assigned to a high-risk tier under this section include, as 
     applicable--
       (A) identification of a security coordinator having 
     authority--
       (i) to implement security actions under the plan;
       (ii) to coordinate security improvements; and
       (iii) to receive immediate communications from appropriate 
     Federal officials regarding railroad security;
       (B) a list of needed capital and operational improvements;
       (C) procedures to be implemented or used by the railroad 
     carrier in response to a terrorist attack, including 
     evacuation and passenger communication plans that include 
     individuals with disabilities as appropriate;
       (D) identification of steps taken with State and local law 
     enforcement agencies, emergency responders, and Federal 
     officials to coordinate security measures and plans for 
     response to a terrorist attack;
       (E) a strategy and timeline for conducting training under 
     section 1517;
       (F) enhanced security measures to be taken by the railroad 
     carrier when the Secretary declares a period of heightened 
     security risk;
       (G) plans for providing redundant and backup systems 
     required to ensure the continued operation of critical 
     elements of the railroad carrier's system in the event of a 
     terrorist attack or other incident;
       (H) a strategy for implementing enhanced security for 
     shipments of security-sensitive materials, including plans 
     for quickly locating and securing such shipments in the event 
     of a terrorist attack or security incident; and
       (I) such other actions or procedures as the Secretary 
     determines are appropriate to address the security of 
     railroad carriers.
       (2) Security coordinator requirements.--The Secretary shall 
     require that the individual serving as the security 
     coordinator identified in paragraph (1)(A) is a citizen of 
     the United States. The Secretary may waive this requirement 
     with respect to an individual if the Secretary determines 
     that it is appropriate to do so based on a background check 
     of the individual and a review of the consolidated terrorist 
     watchlist.
       (3) Consistency with other plans.--The Secretary shall 
     ensure that the security plans developed by railroad carriers 
     under this section are consistent with the risk assessment 
     and National Strategy for Railroad Transportation Security 
     developed under section 1511.
       (f) Deadline for Review Process.--Not later than 6 months 
     after receiving the assessments and plans required under this 
     section, the Secretary shall--
       (1) review each vulnerability assessment and security plan 
     submitted to the Secretary in accordance with subsection (c);
       (2) require amendments to any security plan that does not 
     meet the requirements of this section; and
       (3) approve any vulnerability assessment or security plan 
     that meets the requirements of this section.
       (g) Interim Security Measures.--The Secretary may require 
     railroad carriers, during the period before the deadline 
     established under subsection (c), to submit a security plan 
     under subsection (e) to implement any necessary interim 
     security measures essential to providing adequate security of 
     the railroad carrier's system. An interim plan required under 
     this subsection will be superseded by a plan required under 
     subsection (e).
       (h) Tier Assignment.--Utilizing the risk assessment and 
     National Strategy for Railroad Transportation Security 
     required under section 1511, the Secretary shall assign each 
     railroad carrier to a risk-based tier established by the 
     Secretary.
       (1) Provision of information.--The Secretary may request, 
     and a railroad carrier shall provide, information necessary 
     for the Secretary to assign a railroad carrier to the 
     appropriate tier under this subsection.
       (2) Notification.--Not later than 60 days after the date a 
     railroad carrier is assigned to a tier under this subsection, 
     the Secretary shall notify the railroad carrier of the tier 
     to which it is assigned and the reasons for such assignment.

[[Page 20688]]

       (3) High-risk tiers.--At least one of the tiers established 
     by the Secretary under this subsection shall be designated a 
     tier for high-risk railroad carriers.
       (4) Reassignment.--The Secretary may reassign a railroad 
     carrier to another tier, as appropriate, in response to 
     changes in risk. The Secretary shall notify the railroad 
     carrier not later than 60 days after such reassignment and 
     provide the railroad carrier with the reasons for such 
     reassignment.
       (i) Nondisclosure of Information.--
       (1) Submission of information to congress.--Nothing in this 
     section shall be construed as authorizing the withholding of 
     any information from Congress.
       (2) Disclosure of independently furnished information.--
     Nothing in this section shall be construed as affecting any 
     authority or obligation of a Federal agency to disclose any 
     record or information that the Federal agency obtains from a 
     railroad carrier under any other Federal law.
       (j) Existing Procedures, Protocols and Standards.--
       (1) Determination.--In response to a petition by a railroad 
     carrier or at the discretion of the Secretary, the Secretary 
     may determine that existing procedures, protocols, and 
     standards meet all or part of the requirements of this 
     section, including regulations issued under subsection (a), 
     regarding vulnerability assessments and security plans.
       (2) Election.--Upon review and written determination by the 
     Secretary that existing procedures, protocols, or standards 
     of a railroad carrier satisfy the requirements of this 
     section, the railroad carrier may elect to comply with those 
     procedures, protocols, or standards instead of the 
     requirements of this section.
       (3) Partial approval.--If the Secretary determines that the 
     existing procedures, protocols, or standards of a railroad 
     carrier satisfy only part of the requirements of this 
     section, the Secretary may accept such submission, but shall 
     require submission by the railroad carrier of any additional 
     information relevant to the vulnerability assessment and 
     security plan of the railroad carrier to ensure that the 
     remaining requirements of this section are fulfilled.
       (4) Notification.--If the Secretary determines that 
     particular existing procedures, protocols, or standards of a 
     railroad carrier under this subsection do not satisfy the 
     requirements of this section, the Secretary shall provide to 
     the railroad carrier a written notification that includes an 
     explanation of the determination.
       (5) Review.--Nothing in this subsection shall relieve the 
     Secretary of the obligation--
       (A) to review the vulnerability assessment and security 
     plan submitted by a railroad carrier under this section; and
       (B) to approve or disapprove each submission on an 
     individual basis.
       (k) Periodic Evaluation by Railroad Carriers Required.--
       (1) Submission of evaluation.--Not later than 3 years after 
     the date on which a vulnerability assessment or security plan 
     required to be submitted to the Secretary under subsection 
     (c) is approved, and at least once every 5 years thereafter 
     (or on such a schedule as the Secretary may establish by 
     regulation), a railroad carrier who submitted a vulnerability 
     assessment and security plan and who is still assigned to the 
     high-risk tier must also submit to the Secretary an 
     evaluation of the adequacy of the vulnerability assessment 
     and security plan that includes a description of any material 
     changes made to the vulnerability assessment or security 
     plan.
       (2) Review of evaluation.--Not later than 180 days after 
     the date on which an evaluation is submitted, the Secretary 
     shall review the evaluation and notify the railroad carrier 
     submitting the evaluation of the Secretary's approval or 
     disapproval of the evaluation.
       (l) Shared Facilities.--The Secretary may permit under this 
     section the development and implementation of coordinated 
     vulnerability assessments and security plans to the extent 
     that a railroad carrier shares facilities with, or is 
     colocated with, other transportation entities or providers 
     that are required to develop vulnerability assessments and 
     security plans under Federal law.
       (m) Consultation.--In carrying out this section, the 
     Secretary shall consult with railroad carriers, nonprofit 
     employee labor organizations representation railroad 
     employees, and public safety and law enforcement officials.

     SEC. 1513. RAILROAD SECURITY ASSISTANCE.

       (a) Security Improvement Grants.--(1) The Secretary, in 
     consultation with the Administrator of the Transportation 
     Security Administration and other appropriate agencies or 
     officials, is authorized to make grants to railroad carriers, 
     the Alaska Railroad, security-sensitive materials offerors 
     who ship by railroad, owners of railroad cars used in the 
     transportation of security-sensitive materials, State and 
     local governments (for railroad passenger facilities and 
     infrastructure not owned by Amtrak), and Amtrak for intercity 
     passenger railroad and freight railroad security improvements 
     described in subsection (b) as approved by the Secretary.
       (2) A railroad carrier is eligible for a grant under this 
     section if the carrier has completed a vulnerability 
     assessment and developed a security plan that the Secretary 
     has approved in accordance with section 1512.
       (3) A recipient of a grant under this section may use grant 
     funds only for permissible uses under subsection (b) to 
     further a railroad security plan that meets the requirements 
     of paragraph (2).
       (4) Notwithstanding the requirement for eligibility and 
     uses of funds in paragraphs (2) and (3), a railroad carrier 
     is eligible for a grant under this section if the applicant 
     uses the funds solely for the development of assessments or 
     security plans under section 1512.
       (5) Notwithstanding the requirements for eligibility and 
     uses of funds in paragraphs (2) and (3), prior to the earlier 
     of one year after the date of issuance of final regulations 
     requiring vulnerability assessments and security plans under 
     section 1512 or 3 years after the date of enactment of this 
     Act, the Secretary may award grants under this section for 
     rail security improvements listed under subsection (b) based 
     upon railroad carrier vulnerability assessments and security 
     plans that the Secretary determines are sufficient for the 
     purposes of this section but have not been approved by the 
     Secretary in accordance with section 1512.
       (b) Uses of Funds.--A recipient of a grant under this 
     section shall use the grant funds for one or more of the 
     following:
       (1) Security and redundancy for critical communications, 
     computer, and train control systems essential for secure 
     railroad operations.
       (2) Accommodation of railroad cargo or passenger security 
     inspection facilities, related infrastructure, and operations 
     at or near United States international borders or other ports 
     of entry.
       (3) The security of security-sensitive materials 
     transportation by railroad.
       (4) Chemical, biological, radiological, or explosive 
     detection, including canine patrols for such detection.
       (5) The security of intercity passenger railroad stations, 
     trains, and infrastructure, including security capital 
     improvement projects that the Secretary determines enhance 
     railroad station security.
       (6) Technologies to reduce the vulnerabilities of railroad 
     cars, including structural modification of railroad cars 
     transporting security-sensitive materials to improve their 
     resistance to acts of terrorism.
       (7) The sharing of intelligence and information about 
     security threats.
       (8) To obtain train tracking and communications equipment, 
     including equipment that is interoperable with Federal, 
     State, and local agencies and tribal governments.
       (9) To hire, train, and employ police and security 
     officers, including canine units, assigned to full-time 
     security or counterterrorism duties related to railroad 
     transportation.
       (10) Overtime reimbursement, including reimbursement of 
     State, local, and tribal governments for costs, for enhanced 
     security personnel assigned to duties related to railroad 
     security during periods of high or severe threat levels and 
     National Special Security Events or other periods of 
     heightened security as determined by the Secretary.
       (11) Perimeter protection systems, including access 
     control, installation of improved lighting, fencing, and 
     barricades at railroad facilities.
       (12) Tunnel protection systems.
       (13) Passenger evacuation and evacuation-related capital 
     improvements.
       (14) Railroad security inspection technologies, including 
     verified visual inspection technologies using hand-held 
     readers.
       (15) Surveillance equipment.
       (16) Cargo or passenger screening equipment.
       (17) Emergency response equipment, including fire 
     suppression and decontamination equipment, personal 
     protective equipment, and defibrillators.
       (18) Operating and capital costs associated with security 
     awareness, preparedness, and response training, including 
     training under section 1517, and training developed by 
     universities, institutions of higher education, and nonprofit 
     employee labor organizations, for railroad employees, 
     including frontline employees.
       (19) Live or simulated exercises, including exercises 
     described in section 1516.
       (20) Public awareness campaigns for enhanced railroad 
     security.
       (21) Development of assessments or security plans under 
     section 1512.
       (22) Other security improvements--
       (A) identified, required, or recommended under sections 
     1511 and 1512, including infrastructure, facilities, and 
     equipment upgrades; or
       (B) that the Secretary considers appropriate.
       (c) Department of Homeland Security Responsibilities.--In 
     carrying out the responsibilities under subsection (a), the 
     Secretary shall--
       (1) determine the requirements for recipients of grants;
       (2) establish priorities for uses of funds for grant 
     recipients;
       (3) award the funds authorized by this section based on 
     risk, as identified by the plans required under sections 1511 
     and 1512, or assessment or plan described in subsection 
     (a)(5);
       (4) take into account whether stations or facilities are 
     used by commuter railroad passengers as well as intercity 
     railroad passengers in reviewing grant applications;
       (5) encourage non-Federal financial participation in 
     projects funded by grants; and
       (6) not later than 5 business days after awarding a grant 
     to Amtrak under this section, transfer grant funds to the 
     Secretary of Transportation to be disbursed to Amtrak.
       (d) Multiyear Awards.--Grant funds awarded under this 
     section may be awarded for projects that span multiple years.
       (e) Limitation on Uses of Funds.--A grant made under this 
     section may not be used to make any State or local government 
     cost-sharing contribution under any other Federal law.
       (f) Annual Reports.--Each recipient of a grant under this 
     section shall report annually to the Secretary on the use of 
     grant funds.

[[Page 20689]]

       (g) Non-Federal Match Study.--Not later than 240 days after 
     the date of enactment of this Act, the Secretary shall 
     provide a report to the appropriate congressional committees 
     on the feasibility and appropriateness of requiring a non-
     Federal match for grants awarded to freight railroad carriers 
     and other private entities under this section.
       (h) Subject to Certain Standards.--A recipient of a grant 
     under this section and sections 1514 and 1515 shall be 
     required to comply with the standards of section 24312 of 
     title 49, United States Code, as in effect on January 1, 
     2007, with respect to the project in the same manner as 
     Amtrak is required to comply with such standards for 
     construction work financed under an agreement made under 
     section 24308(a) of that title.
       (i) Authorization of Appropriations.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503 of this title, there shall be made available to 
     the Secretary to carry out this section--
       (A) $300,000,000 for fiscal year 2008;
       (B) $300,000,000 for fiscal year 2009;
       (C) $300,000,000 for fiscal year 2010; and
       (D) $300,000,000 for fiscal year 2011.
       (2) Period of availability.--Sums appropriated to carry out 
     this section shall remain available until expended.

     SEC. 1514. SYSTEMWIDE AMTRAK SECURITY UPGRADES.

       (a) In General.--
       (1) Grants.--Subject to subsection (b), the Secretary, in 
     consultation with the Administrator of the Transportation 
     Security Administration, is authorized to make grants to 
     Amtrak in accordance with the provisions of this section.
       (2) General purposes.--The Secretary may make such grants 
     for the purposes of--
       (A) protecting underwater and underground assets and 
     systems;
       (B) protecting high-risk and high-consequence assets 
     identified through systemwide risk assessments;
       (C) providing counterterrorism or security training;
       (D) providing both visible and unpredictable deterrence; 
     and
       (E) conducting emergency preparedness drills and exercises.
       (3) Specific projects.--The Secretary shall make such 
     grants--
       (A) to secure major tunnel access points and ensure tunnel 
     integrity in New York, New Jersey, Maryland, and Washington, 
     DC;
       (B) to secure Amtrak trains;
       (C) to secure Amtrak stations;
       (D) to obtain a watchlist identification system approved by 
     the Secretary;
       (E) to obtain train tracking and interoperable 
     communications systems that are coordinated with Federal, 
     State, and local agencies and tribal governments to the 
     maximum extent possible;
       (F) to hire, train, and employ police and security 
     officers, including canine units, assigned to full-time 
     security or counterterrorism duties related to railroad 
     transportation;
       (G) for operating and capital costs associated with 
     security awareness, preparedness, and response training, 
     including training under section 1517, and training developed 
     by universities, institutions of higher education, and 
     nonprofit employee labor organizations, for railroad 
     employees, including frontline employees; and
       (H) for live or simulated exercises, including exercises 
     described in section 1516.
       (b) Conditions.--The Secretary shall award grants to Amtrak 
     under this section for projects contained in a systemwide 
     security plan approved by the Secretary developed pursuant to 
     section 1512. Not later than 5 business days after awarding a 
     grant to Amtrak under this section, the Secretary shall 
     transfer the grant funds to the Secretary of Transportation 
     to be disbursed to Amtrak.
       (c) Equitable Geographic Allocation.--The Secretary shall 
     ensure that, subject to meeting the highest security needs on 
     Amtrak's entire system and consistent with the risk 
     assessment required under section 1511 and Amtrak's 
     vulnerability assessment and security plan developed under 
     section 1512, stations and facilities located outside of the 
     Northeast Corridor receive an equitable share of the security 
     funds authorized by this section.
       (d) Availability of Funds.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503 of this title, there shall be made available to 
     the Secretary and the Administrator of the Transportation 
     Security Administration to carry out this section--
       (A) $150,000,000 for fiscal year 2008;
       (B) $150,000,000 for fiscal year 2009;
       (C) $175,000,000 for fiscal year 2010; and
       (D) $175,000,000 for fiscal year 2011.
       (2) Availability of appropriated funds.--Amounts 
     appropriated pursuant to paragraph (1) shall remain available 
     until expended.

     SEC. 1515. FIRE AND LIFE SAFETY IMPROVEMENTS.

       (a) Life-Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for making 
     grants to Amtrak for the purpose of carrying out projects to 
     make fire and life safety improvements to Amtrak tunnels on 
     the Northeast Corridor the following amounts:
       (1) For the 6 New York and New Jersey tunnels to provide 
     ventilation, electrical, and fire safety technology 
     improvements, emergency communication and lighting systems, 
     and emergency access and egress for passengers--
       (A) $25,000,000 for fiscal year 2008;
       (B) $30,000,000 for fiscal year 2009;
       (C) $45,000,000 for fiscal year 2010; and
       (D) $60,000,000 for fiscal year 2011.
       (2) For the Baltimore Potomac Tunnel and the Union Tunnel, 
     together, to provide adequate drainage and ventilation, 
     communication, lighting, standpipe, and passenger egress 
     improvements--
       (A) $5,000,000 for fiscal year 2008;
       (B) $5,000,000 for fiscal year 2009;
       (C) $5,000,000 for fiscal year 2010; and
       (D) $5,000,000 for fiscal year 2011.
       (3) For the Union Station tunnels in the District of 
     Columbia to improve ventilation, communication, lighting, and 
     passenger egress improvements--
       (A) $5,000,000 for fiscal year 2008;
       (B) $5,000,000 for fiscal year 2009;
       (C) $5,000,000 for fiscal year 2010; and
       (D) $5,000,000 for fiscal year 2011.
       (b) Infrastructure Upgrades.--Out of funds appropriated 
     pursuant to section 1503(b), there shall be made available to 
     the Secretary of Transportation for fiscal year 2008, 
     $3,000,000 for the preliminary design of options for a new 
     tunnel on a different alignment to augment the capacity of 
     the existing Baltimore tunnels.
       (c) Availability of Amounts.--Amounts appropriated pursuant 
     to this section shall remain available until expended.
       (d) Plans Required.--The Secretary of Transportation may 
     not make amounts available to Amtrak for obligation or 
     expenditure under subsection (a)--
       (1) until Amtrak has submitted to the Secretary of 
     Transportation, and the Secretary of Transportation has 
     approved, an engineering and financial plan for such 
     projects; and
       (2) unless, for each project funded pursuant to this 
     section, the Secretary of Transportation has approved a 
     project management plan prepared by Amtrak.
       (e) Review of Plans.--
       (1) In general.--The Secretary of Transportation shall 
     complete the review of a plan required under subsection (d) 
     and approve or disapprove the plan within 45 days after the 
     date on which each such plan is submitted by Amtrak.
       (2) Incomplete or deficient plan.--If the Secretary of 
     Transportation determines that a plan is incomplete or 
     deficient, the Secretary of Transportation shall notify 
     Amtrak of the incomplete items or deficiencies and Amtrak 
     shall, within 30 days after receiving the Secretary of 
     Transportation's notification, submit a modified plan for the 
     Secretary of Transportation's review.
       (3) Approval of plan.--Within 15 days after receiving 
     additional information on items previously included in the 
     plan, and within 45 days after receiving items newly included 
     in a modified plan, the Secretary of Transportation shall 
     either approve the modified plan, or if the Secretary of 
     Transportation finds the plan is still incomplete or 
     deficient, the Secretary of Transportation shall--
       (A) identify in writing to the appropriate congressional 
     committees the portions of the plan the Secretary finds 
     incomplete or deficient;
       (B) approve all other portions of the plan;
       (C) obligate the funds associated with those portions; and
       (D) execute an agreement with Amtrak within 15 days 
     thereafter on a process for resolving the remaining portions 
     of the plan.
       (f) Financial Contribution From Other Tunnel Users.--The 
     Secretary of Transportation, taking into account the need for 
     the timely completion of all portions of the tunnel projects 
     described in subsection (a), shall--
       (1) consider the extent to which railroad carriers other 
     than Amtrak use or plan to use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other railroad carriers toward the 
     costs of the projects; and
       (3) obtain financial contributions or commitments from such 
     other railroad carriers at levels reflecting the extent of 
     their use or planned use of the tunnels, if feasible.

     SEC. 1516. RAILROAD CARRIER EXERCISES.

       (a) In General.--The Secretary shall establish a program 
     for conducting security exercises for railroad carriers for 
     the purpose of assessing and improving the capabilities of 
     entities described in subsection (b) to prevent, prepare for, 
     mitigate, respond to, and recover from acts of terrorism.
       (b) Covered Entities.--Entities to be assessed under the 
     program shall include--
       (1) Federal, State, and local agencies and tribal 
     governments;
       (2) railroad carriers;
       (3) governmental and nongovernmental emergency response 
     providers, law enforcement agencies, and railroad and transit 
     police, as appropriate; and
       (4) any other organization or entity that the Secretary 
     determines appropriate.
       (c) Requirements.--The Secretary shall ensure that the 
     program--
       (1) consolidates existing security exercises for railroad 
     carriers administered by the Department and the Department of 
     Transportation, as jointly determined by the Secretary and 
     the Secretary of Transportation, unless the Secretary waives 
     this consolidation requirement as appropriate;
       (2) consists of exercises that are--
       (A) scaled and tailored to the needs of the carrier, 
     including addressing the needs of the elderly and individuals 
     with disabilities;
       (B) live, in the case of the most at-risk facilities to a 
     terrorist attack;

[[Page 20690]]

       (C) coordinated with appropriate officials;
       (D) as realistic as practicable and based on current risk 
     assessments, including credible threats, vulnerabilities, and 
     consequences;
       (E) inclusive, as appropriate, of railroad frontline 
     employees; and
       (F) consistent with the National Incident Management 
     System, the National Response Plan, the National 
     Infrastructure Protection Plan, the National Preparedness 
     Guidance, the National Preparedness Goal, and other such 
     national initiatives;
       (3) provides that exercises described in paragraph (2) will 
     be--
       (A) evaluated by the Secretary against clear and consistent 
     performance measures;
       (B) assessed by the Secretary to identify best practices, 
     which shall be shared, as appropriate, with railroad 
     carriers, nonprofit employee organizations that represent 
     railroad carrier employees, Federal, State, local, and tribal 
     officials, governmental and nongovernmental emergency 
     response providers, law enforcement personnel, including 
     railroad carrier and transit police, and other stakeholders; 
     and
       (C) used to develop recommendations, as appropriate, from 
     the Secretary to railroad carriers on remedial action to be 
     taken in response to lessons learned;
       (4) allows for proper advanced notification of communities 
     and local governments in which exercises are held, as 
     appropriate; and
       (5) assists State, local, and tribal governments and 
     railroad carriers in designing, implementing, and evaluating 
     additional exercises that conform to the requirements of 
     paragraph (1).
       (d) National Exercise Program.--The Secretary shall ensure 
     that the exercise program developed under subsection (c) is a 
     component of the National Exercise Program established under 
     section 648 of the Post Katrina Emergency Management Reform 
     Act (Public Law 109-295; 6 U.S.C. 748).

     SEC. 1517. RAILROAD SECURITY TRAINING PROGRAM.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall develop and issue 
     regulations for a training program to prepare railroad 
     frontline employees for potential security threats and 
     conditions. The regulations shall take into consideration any 
     current security training requirements or best practices.
       (b) Consultation.--The Secretary shall develop the 
     regulations under subsection (a) in consultation with--
       (1) appropriate law enforcement, fire service, emergency 
     response, security, and terrorism experts;
       (2) railroad carriers;
       (3) railroad shippers; and
       (4) nonprofit employee labor organizations representing 
     railroad employees or emergency response personnel.
       (c) Program Elements.--The regulations developed under 
     subsection (a) shall require security training programs 
     described in subsection (a) to include, at a minimum, 
     elements to address the following, as applicable:
       (1) Determination of the seriousness of any occurrence or 
     threat.
       (2) Crew and passenger communication and coordination.
       (3) Appropriate responses to defend or protect oneself.
       (4) Use of personal and other protective equipment.
       (5) Evacuation procedures for passengers and railroad 
     employees, including individuals with disabilities and the 
     elderly.
       (6) Psychology, behavior, and methods of terrorists, 
     including observation and analysis.
       (7) Training related to psychological responses to 
     terrorist incidents, including the ability to cope with 
     hijacker behavior and passenger responses.
       (8) Live situational training exercises regarding various 
     threat conditions, including tunnel evacuation procedures.
       (9) Recognition and reporting of dangerous substances, 
     suspicious packages, and situations.
       (10) Understanding security incident procedures, including 
     procedures for communicating with governmental and 
     nongovernmental emergency response providers and for on-scene 
     interaction with such emergency response providers.
       (11) Operation and maintenance of security equipment and 
     systems.
       (12) Other security training activities that the Secretary 
     considers appropriate.
       (d) Required Programs.--
       (1) Development and submission to secretary.--Not later 
     than 90 days after the Secretary issues regulations under 
     subsection (a), each railroad carrier shall develop a 
     security training program in accordance with this section and 
     submit the program to the Secretary for approval.
       (2) Approval or disapproval.--Not later than 60 days after 
     receiving a security training program proposal under this 
     subsection, the Secretary shall approve the program or 
     require the railroad carrier that developed the program to 
     make any revisions to the program that the Secretary 
     considers necessary for the program to meet the requirements 
     of this section. A railroad carrier shall respond to the 
     Secretary's comments within 30 days after receiving them.
       (3) Training.--Not later than 1 year after the Secretary 
     approves a security training program in accordance with this 
     subsection, the railroad carrier that developed the program 
     shall complete the training of all railroad frontline 
     employees who were hired by a carrier more than 30 days 
     preceding such date. For such employees employed less than 30 
     days by a carrier preceding such date, training shall be 
     completed within the first 60 days of employment.
       (4) Updates of regulations and program revisions.--The 
     Secretary shall periodically review and update as appropriate 
     the training regulations issued under subsection (a) to 
     reflect new or changing security threats. Each railroad 
     carrier shall revise its training program accordingly and 
     provide additional training as necessary to its frontline 
     employees within a reasonable time after the regulations are 
     updated.
       (e) National Training Program.--The Secretary shall ensure 
     that the training program developed under subsection (a) is a 
     component of the National Training Program established under 
     section 648 of the Post Katrina Emergency Management Reform 
     Act (Public Law 109-295; 6 U.S.C. 748).
       (f) Reporting Requirements.--Not later than 2 years after 
     the date of regulation issuance, the Secretary shall review 
     implementation of the training program of a representative 
     sample of railroad carriers and railroad frontline employees, 
     and report to the appropriate congressional committees on the 
     number of reviews conducted and the results of such reviews. 
     The Secretary may submit the report in both classified and 
     redacted formats as necessary.
       (g) Other Employees.--The Secretary shall issue guidance 
     and best practices for a railroad shipper employee security 
     program containing the elements listed under subsection (c).

     SEC. 1518. RAILROAD SECURITY RESEARCH AND DEVELOPMENT.

       (a) Establishment of Research and Development Program.--The 
     Secretary, acting through the Under Secretary for Science and 
     Technology and the Administrator of the Transportation 
     Security Administration, shall carry out a research and 
     development program for the purpose of improving the security 
     of railroad transportation systems.
       (b) Eligible Projects.--The research and development 
     program may include projects--
       (1) to reduce the vulnerability of passenger trains, 
     stations, and equipment to explosives and hazardous chemical, 
     biological, and radioactive substances, including the 
     development of technology to screen passengers in large 
     numbers at peak commuting times with minimal interference and 
     disruption;
       (2) to test new emergency response and recovery techniques 
     and technologies, including those used at international 
     borders;
       (3) to develop improved railroad security technologies, 
     including--
       (A) technologies for sealing or modifying railroad tank 
     cars;
       (B) automatic inspection of railroad cars;
       (C) communication-based train control systems;
       (D) emergency response training, including training in a 
     tunnel environment;
       (E) security and redundancy for critical communications, 
     electrical power, computer, and train control systems; and
       (F) technologies for securing bridges and tunnels;
       (4) to test wayside detectors that can detect tampering;
       (5) to support enhanced security for the transportation of 
     security-sensitive materials by railroad;
       (6) to mitigate damages in the event of a cyber attack; and
       (7) to address other vulnerabilities and risks identified 
     by the Secretary.
       (c) Coordination With Other Research Initiatives.--The 
     Secretary--
       (1) shall ensure that the research and development program 
     is consistent with the National Strategy for Railroad 
     Transportation Security developed under section 1511 and any 
     other transportation security research and development 
     programs required by this Act;
       (2) shall, to the extent practicable, coordinate the 
     research and development activities of the Department with 
     other ongoing research and development security-related 
     initiatives, including research being conducted by--
       (A) the Department of Transportation, including University 
     Transportation Centers and other institutes, centers, and 
     simulators funded by the Department of Transportation;
       (B) the National Academy of Sciences;
       (C) the Technical Support Working Group;
       (D) other Federal departments and agencies; and
       (E) other Federal and private research laboratories, 
     research entities, and universities and institutions of 
     higher education, including Historically Black Colleges and 
     Universities, Hispanic Serving Institutions, or Indian 
     Tribally Controlled Colleges and Universities;
       (3) shall carry out any research and development project 
     authorized by this section through a reimbursable agreement 
     with an appropriate Federal agency, if the agency--
       (A) is currently sponsoring a research and development 
     project in a similar area; or
       (B) has a unique facility or capability that would be 
     useful in carrying out the project;
       (4) may award grants, or enter into cooperative agreements, 
     contracts, other transactions, or reimbursable agreements to 
     the entities described in paragraph (2) and the eligible 
     grant recipients under section 1513; and
       (5) shall make reasonable efforts to enter into memoranda 
     of understanding, contracts, grants, cooperative agreements, 
     or other transactions with railroad carriers willing to 
     contribute both physical space and other resources.
       (d) Privacy and Civil Rights and Civil Liberties Issues.--
       (1) Consultation.--In carrying out research and development 
     projects under this section, the

[[Page 20691]]

     Secretary shall consult with the Chief Privacy Officer of the 
     Department and the Officer for Civil Rights and Civil 
     Liberties of the Department as appropriate and in accordance 
     with section 222 of the Homeland Security Act of 2002 (6 
     U.S.C. 142).
       (2) Privacy impact assessments.--In accordance with 
     sections 222 and 705 of the Homeland Security Act of 2002 (6 
     U.S.C. 142; 345), the Chief Privacy Officer shall conduct 
     privacy impact assessments and the Officer for Civil Rights 
     and Civil Liberties shall conduct reviews, as appropriate, 
     for research and development initiatives developed under this 
     section that the Secretary determines could have an impact on 
     privacy, civil rights, or civil liberties.
       (e) Authorization of Appropriations.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503, there shall be made available to the Secretary 
     to carry out this section--
       (A) $33,000,000 for fiscal year 2008;
       (B) $33,000,000 for fiscal year 2009;
       (C) $33,000,000 for fiscal year 2010; and
       (D) $33,000,000 for fiscal year 2011.
       (2) Period of availability.--Such sums shall remain 
     available until expended.

     SEC. 1519. RAILROAD TANK CAR SECURITY TESTING.

       (a) Railroad Tank Car Vulnerability Assessment.--
       (1) Assessment.--The Secretary shall assess the likely 
     methods of a deliberate terrorist attack against a railroad 
     tank car used to transport toxic-inhalation-hazard materials, 
     and for each method assessed, the degree to which it may be 
     successful in causing death, injury, or serious adverse 
     effects to human health, the environment, critical 
     infrastructure, national security, the national economy, or 
     public welfare.
       (2) Threats.--In carrying out paragraph (1), the Secretary 
     shall consider the most current threat information as to 
     likely methods of a successful terrorist attack on a railroad 
     tank car transporting toxic-inhalation-hazard materials, and 
     may consider the following:
       (A) Explosive devices placed along the tracks or attached 
     to a railroad tank car.
       (B) The use of missiles, grenades, rockets, mortars, or 
     other high-caliber weapons against a railroad tank car.
       (3) Physical testing.--In developing the assessment 
     required under paragraph (1), the Secretary shall conduct 
     physical testing of the vulnerability of railroad tank cars 
     used to transport toxic-inhalation-hazard materials to 
     different methods of a deliberate attack, using technical 
     information and criteria to evaluate the structural integrity 
     of railroad tank cars.
       (4) Report.--Not later than 30 days after the completion of 
     the assessment under paragraph (1), the Secretary shall 
     provide to the appropriate congressional committees a report, 
     in the appropriate format, on such assessment.
       (b) Railroad Tank Car Dispersion Modeling.--
       (1) In general.--The Secretary, acting through the National 
     Infrastructure Simulation and Analysis Center, shall conduct 
     an air dispersion modeling analysis of release scenarios of 
     toxic-inhalation-hazard materials resulting from a terrorist 
     attack on a loaded railroad tank car carrying such materials 
     in urban and rural environments.
       (2) Considerations.--The analysis under this subsection 
     shall take into account the following considerations:
       (A) The most likely means of attack and the resulting 
     dispersal rate.
       (B) Different times of day, to account for differences in 
     cloud coverage and other atmospheric conditions in the 
     environment being modeled.
       (C) Differences in population size and density.
       (D) Historically accurate wind speeds, temperatures, and 
     wind directions.
       (E) Differences in dispersal rates or other relevant 
     factors related to whether a railroad tank car is in motion 
     or stationary.
       (F) Emergency response procedures by local officials.
       (G) Any other considerations the Secretary believes would 
     develop an accurate, plausible dispersion model for toxic-
     inhalation-hazard materials released from a railroad tank car 
     as a result of a terrorist act.
       (3) Consultation.--In conducting the dispersion modeling 
     under paragraph (1), the Secretary shall consult with the 
     Secretary of Transportation, hazardous materials experts, 
     railroad carriers, nonprofit employee labor organizations 
     representing railroad employees, appropriate State, local, 
     and tribal officials, and other Federal agencies, as 
     appropriate.
       (4) Information sharing.--Upon completion of the analysis 
     required under paragraph (1), the Secretary shall share the 
     information developed with the appropriate stakeholders, 
     given appropriate information protection provisions as may be 
     required by the Secretary.
       (5) Report.--Not later than 30 days after completion of all 
     dispersion analyses under paragraph (1), the Secretary shall 
     submit to the appropriate congressional committees a report 
     detailing the Secretary's conclusions and findings in an 
     appropriate format.

     SEC. 1520. RAILROAD THREAT ASSESSMENTS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall complete a name-based security 
     background check against the consolidated terrorist watchlist 
     and an immigration status check for all railroad frontline 
     employees, similar to the threat assessment screening program 
     required for facility employees and longshoremen by the 
     Commandant of the Coast Guard under Coast Guard Notice USCG-
     2006-24189 (71 Fed. Reg. 25066 (April 8, 2006)).

     SEC. 1521. RAILROAD EMPLOYEE PROTECTIONS.

       Section 20109 of title 49, United States Code, is amended 
     to read:

     ``SEC. 20109. EMPLOYEE PROTECTIONS.

       ``(a) In General.--A railroad carrier engaged in interstate 
     or foreign commerce, a contractor or a subcontractor of such 
     a railroad carrier, or an officer or employee of such a 
     railroad carrier, may not discharge, demote, suspend, 
     reprimand, or in any other way discriminate against an 
     employee if such discrimination is due, in whole or in part, 
     to the employee's lawful, good faith act done, or perceived 
     by the employer to have been done or about to be done--
       ``(1) to provide information, directly cause information to 
     be provided, or otherwise directly assist in any 
     investigation regarding any conduct which the employee 
     reasonably believes constitutes a violation of any Federal 
     law, rule, or regulation relating to railroad safety or 
     security, or gross fraud, waste, or abuse of Federal grants 
     or other public funds intended to be used for railroad safety 
     or security, if the information or assistance is provided to 
     or an investigation stemming from the provided information is 
     conducted by--
       ``(A) a Federal, State, or local regulatory or law 
     enforcement agency (including an office of the Inspector 
     General under the Inspector General Act of 1978 (5 U.S.C. 
     App.; Public Law 95-452);
       ``(B) any Member of Congress, any committee of Congress, or 
     the Government Accountability Office; or
       ``(C) a person with supervisory authority over the employee 
     or such other person who has the authority to investigate, 
     discover, or terminate the misconduct;
       ``(2) to refuse to violate or assist in the violation of 
     any Federal law, rule, or regulation relating to railroad 
     safety or security;
       ``(3) to file a complaint, or directly cause to be brought 
     a proceeding related to the enforcement of this part or, as 
     applicable to railroad safety or security, chapter 51 or 57 
     of this title, or to testify in that proceeding;
       ``(4) to notify, or attempt to notify, the railroad carrier 
     or the Secretary of Transportation of a work-related personal 
     injury or work-related illness of an employee;
       ``(5) to cooperate with a safety or security investigation 
     by the Secretary of Transportation, the Secretary of Homeland 
     Security, or the National Transportation Safety Board;
       ``(6) to furnish information to the Secretary of 
     Transportation, the Secretary of Homeland Security, the 
     National Transportation Safety Board, or any Federal, State, 
     or local regulatory or law enforcement agency as to the facts 
     relating to any accident or incident resulting in injury or 
     death to an individual or damage to property occurring in 
     connection with railroad transportation; or
       ``(7) to accurately report hours on duty pursuant to 
     chapter 211.
       ``(b) Hazardous Safety or Security Conditions.--(1) A 
     railroad carrier engaged in interstate or foreign commerce, 
     or an officer or employee of such a railroad carrier, shall 
     not discharge, demote, suspend, reprimand, or in any other 
     way discriminate against an employee for--
       ``(A) reporting, in good faith, a hazardous safety or 
     security condition;
       ``(B) refusing to work when confronted by a hazardous 
     safety or security condition related to the performance of 
     the employee's duties, if the conditions described in 
     paragraph (2) exist; or
       ``(C) refusing to authorize the use of any safety-related 
     equipment, track, or structures, if the employee is 
     responsible for the inspection or repair of the equipment, 
     track, or structures, when the employee believes that the 
     equipment, track, or structures are in a hazardous safety or 
     security condition, if the conditions described in paragraph 
     (2) exist.
       ``(2) A refusal is protected under paragraph (1)(B) and (C) 
     if--
       ``(A) the refusal is made in good faith and no reasonable 
     alternative to the refusal is available to the employee;
       ``(B) a reasonable individual in the circumstances then 
     confronting the employee would conclude that--
       ``(i) the hazardous condition presents an imminent danger 
     of death or serious injury; and
       ``(ii) the urgency of the situation does not allow 
     sufficient time to eliminate the danger without such refusal; 
     and
       ``(C) the employee, where possible, has notified the 
     railroad carrier of the existence of the hazardous condition 
     and the intention not to perform further work, or not to 
     authorize the use of the hazardous equipment, track, or 
     structures, unless the condition is corrected immediately or 
     the equipment, track, or structures are repaired properly or 
     replaced.
       ``(3) In this subsection, only paragraph (1)(A) shall apply 
     to security personnel employed by a railroad carrier to 
     protect individuals and property transported by railroad.
       ``(c) Enforcement Action.--
       ``(1) In general.--An employee who alleges discharge, 
     discipline, or other discrimination in violation of 
     subsection (a) or (b) of this section, may seek relief in 
     accordance with the provisions of this section, with any 
     petition or other request for relief under this section to be 
     initiated by filing a complaint with the Secretary of Labor.
       ``(2) Procedure.--
       ``(A) In general.--Any action under paragraph (1) shall be 
     governed under the rules and

[[Page 20692]]

     procedures set forth in section 42121(b), including:
       ``(i) Burdens of proof.--Any action brought under (c)(1) 
     shall be governed by the legal burdens of proof set forth in 
     section 42121(b).
       ``(ii) Statute of limitations.--An action under paragraph 
     (1) shall be commenced not later than 180 days after the date 
     on which the alleged violation of subsection (a) or (b) of 
     this section occurs.
       ``(iii) Civil actions to enforce.--If a person fails to 
     comply with an order issued by the Secretary of Labor 
     pursuant to the procedures in section 42121(b), the Secretary 
     of Labor may bring a civil action to enforce the order in the 
     district court of the United States for the judicial district 
     in which the violation occurred, as set forth in 42121.
       ``(B) Exception.--Notification made under section 
     42121(b)(1) shall be made to the person named in the 
     complaint and the person's employer.
       ``(3) De novo review.--With respect to a complaint under 
     paragraph (1), if the Secretary of Labor has not issued a 
     final decision within 210 days after the filing of the 
     complaint and if the delay is not due to the bad faith of the 
     employee, the employee may bring an original action at law or 
     equity for de novo review in the appropriate district court 
     of the United States, which shall have jurisdiction over such 
     an action without regard to the amount in controversy, and 
     which action shall, at the request of either party to such 
     action, be tried by the court with a jury.
       ``(4) Appeals.--Any person adversely affected or aggrieved 
     by an order issued pursuant to the procedures in section 
     42121(b), may obtain review of the order in the United States 
     court of appeals for the circuit in which the violation, with 
     respect to which the order was issued, allegedly occurred or 
     the circuit in which the complainant resided on the date of 
     such violation. The petition for review must be filed not 
     later than 60 days after the date of the issuance of the 
     final order of the Secretary of Labor. The review shall 
     conform to chapter 7 of title 5. The commencement of 
     proceedings under this paragraph shall not, unless ordered by 
     the court, operate as a stay of the order.
       ``(d) Remedies.--
       ``(1) In general.--An employee prevailing in any action 
     under subsection (c) shall be entitled to all relief 
     necessary to make the employee whole.
       ``(2) Damages.--Relief in an action under subsection (c) 
     (including an action described in subsection (c)(3)) shall 
     include--
       ``(A) reinstatement with the same seniority status that the 
     employee would have had, but for the discrimination;
       ``(B) any backpay, with interest; and
       ``(C) compensatory damages, including compensation for any 
     special damages sustained as a result of the discrimination, 
     including litigation costs, expert witness fees, and 
     reasonable attorney fees.
       ``(3) Possible relief.--Relief in any action under 
     subsection (c) may include punitive damages in an amount not 
     to exceed $250,000.
       ``(e) Election of Remedies.--An employee may not seek 
     protection under both this section and another provision of 
     law for the same allegedly unlawful act of the railroad 
     carrier.
       ``(f) No Preemption.--Nothing in this section preempts or 
     diminishes any other safeguards against discrimination, 
     demotion, discharge, suspension, threats, harassment, 
     reprimand, retaliation, or any other manner of discrimination 
     provided by Federal or State law.
       ``(g) Rights Retained by Employee.--Nothing in this section 
     shall be deemed to diminish the rights, privileges, or 
     remedies of any employee under any Federal or State law or 
     under any collective bargaining agreement. The rights and 
     remedies in this section may not be waived by any agreement, 
     policy, form, or condition of employment.
       ``(h) Disclosure of Identity.--
       ``(1) Except as provided in paragraph (2) of this 
     subsection, or with the written consent of the employee, the 
     Secretary of Transportation or the Secretary of Homeland 
     Security may not disclose the name of an employee of a 
     railroad carrier who has provided information about an 
     alleged violation of this part or, as applicable to railroad 
     safety or security, chapter 51 or 57 of this title, or a 
     regulation prescribed or order issued under any of those 
     provisions.
       ``(2) The Secretary of Transportation or the Secretary of 
     Homeland Security shall disclose to the Attorney General the 
     name of an employee described in paragraph (1) if the matter 
     is referred to the Attorney General for enforcement. The 
     Secretary making such disclosures shall provide reasonable 
     advance notice to the affected employee if disclosure of that 
     person's identity or identifying information is to occur.
       ``(i) Process for Reporting Security Problems to the 
     Department of Homeland Security.--
       ``(1) Establishment of process.--The Secretary of Homeland 
     Security shall establish through regulations, after an 
     opportunity for notice and comment, a process by which any 
     person may report to the Secretary of Homeland Security 
     regarding railroad security problems, deficiencies, or 
     vulnerabilities.
       ``(2) Acknowledgment of receipt.--If a report submitted 
     under paragraph (1) identifies the person making the report, 
     the Secretary of Homeland Security shall respond promptly to 
     such person and acknowledge receipt of the report.
       ``(3) Steps to address problem.--The Secretary of Homeland 
     Security shall review and consider the information provided 
     in any report submitted under paragraph (1) and shall take 
     appropriate steps to address any problems or deficiencies 
     identified.''.

     SEC. 1522. SECURITY BACKGROUND CHECKS OF COVERED INDIVIDUALS.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Security background check.--The term ``security 
     background check'' means reviewing, for the purpose of 
     identifying individuals who may pose a threat to 
     transportation security or national security, or of 
     terrorism--
       (A) relevant criminal history databases;
       (B) in the case of an alien (as defined in the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(3)), the relevant 
     databases to determine the status of the alien under the 
     immigration laws of the United States; and
       (C) other relevant information or databases, as determined 
     by the Secretary.
       (2) Covered individual.--The term ``covered individual'' 
     means an employee of a railroad carrier or a contractor or 
     subcontractor of a railroad carrier.
       (b) Guidance.--
       (1) Any guidance, recommendations, suggested action items, 
     or any other widely disseminated voluntary action items 
     issued by the Secretary to a railroad carrier or a contractor 
     or subcontractor of a railroad carrier relating to performing 
     a security background check of a covered individual shall 
     contain recommendations on the appropriate scope and 
     application of such a security background check, including 
     the time period covered, the types of disqualifying offenses, 
     and a redress process for adversely impacted covered 
     individuals consistent with subsections (c) and (d) of this 
     section.
       (2) Within 60 days after the date of enactment of this Act, 
     any guidance, recommendations, suggested action items, or any 
     other widely disseminated voluntary action item issued by the 
     Secretary prior to the date of enactment of this Act to a 
     railroad carrier or a contractor or subcontractor of a 
     railroad carrier relating to performing a security background 
     check of a covered individual shall be updated in compliance 
     with paragraph (1).
       (3) If a railroad carrier or a contractor or subcontractor 
     of a railroad carrier performs a security background check on 
     a covered individual to fulfill guidance issued by the 
     Secretary under paragraph (1) or (2), the Secretary shall not 
     consider such guidance fulfilled unless an adequate redress 
     process as described in subsection (d) is provided to covered 
     individuals.
       (c) Requirements.--If the Secretary issues a rule, 
     regulation, or directive requiring a railroad carrier or 
     contractor or subcontractor of a railroad carrier to perform 
     a security background check of a covered individual, then the 
     Secretary shall prohibit the railroad carrier or contractor 
     or subcontractor of a railroad carrier from making an adverse 
     employment decision, including removal or suspension of the 
     covered individual, due to such rule, regulation, or 
     directive with respect to a covered individual unless the 
     railroad carrier or contractor or subcontractor of a railroad 
     carrier determines that the covered individual--
       (1) has been convicted of, has been found not guilty by 
     reason of insanity, or is under want, warrant, or indictment 
     for a permanent disqualifying criminal offense listed in part 
     1572 of title 49, Code of Federal Regulations;
       (2) was convicted of or found not guilty by reason of 
     insanity of an interim disqualifying criminal offense listed 
     in part 1572 of title 49, Code of Federal Regulations, within 
     7 years of the date that the railroad carrier or contractor 
     or subcontractor of a railroad carrier performs the security 
     background check; or
       (3) was incarcerated for an interim disqualifying criminal 
     offense listed in part 1572 of title 49, Code of Federal 
     Regulations, and released from incarceration within 5 years 
     of the date that the railroad carrier or contractor or 
     subcontractor of a railroad carrier performs the security 
     background check.
       (d) Redress Process.--If the Secretary issues a rule, 
     regulation, or directive requiring a railroad carrier or 
     contractor or subcontractor of a railroad carrier to perform 
     a security background check of a covered individual, the 
     Secretary shall--
       (1) provide an adequate redress process for a covered 
     individual subjected to an adverse employment decision, 
     including removal or suspension of the employee, due to such 
     rule, regulation, or directive that is consistent with the 
     appeals and waiver process established for applicants for 
     commercial motor vehicle hazardous materials endorsements and 
     transportation employees at ports, as required by section 
     70105(c) of title 46, United States Code; and
       (2) have the authority to order an appropriate remedy, 
     including reinstatement of the covered individual, should the 
     Secretary determine that a railroad carrier or contractor or 
     subcontractor of a railroad carrier wrongfully made an 
     adverse employment decision regarding a covered individual 
     pursuant to such rule, regulation, or directive.
       (e) False Statements.--A railroad carrier or a contractor 
     or subcontractor of a railroad carrier may not knowingly 
     misrepresent to an employee or other relevant person, 
     including an arbiter involved in a labor arbitration, the 
     scope, application, or meaning of any rules, regulations, 
     directives, or guidance issued by the Secretary related to 
     security background check requirements for covered 
     individuals when conducting a security background check. Not 
     later than 1 year after the date of enactment of this Act, 
     the Secretary shall issue a regulation that

[[Page 20693]]

     prohibits a railroad carrier or a contractor or subcontractor 
     of a railroad carrier from knowingly misrepresenting to an 
     employee or other relevant person, including an arbiter 
     involved in a labor arbitration, the scope, application, or 
     meaning of any rules, regulations, directives, or guidance 
     issued by the Secretary related to security background check 
     requirements for covered individuals when conducting a 
     security background check.
       (f) Rights and Responsibilities.--Nothing in this section 
     shall be construed to abridge a railroad carrier's or a 
     contractor or subcontractor of a railroad carrier's rights or 
     responsibilities to make adverse employment decisions 
     permitted by other Federal, State, or local laws. Nothing in 
     the section shall be construed to abridge rights and 
     responsibilities of covered individuals, a railroad carrier, 
     or a contractor or subcontractor of a railroad carrier, under 
     any other Federal, State, or local laws or under any 
     collective bargaining agreement.
       (g) No Preemption of Federal or State Law.--Nothing in this 
     section shall be construed to preempt a Federal, State, or 
     local law that requires criminal history background checks, 
     immigration status checks, or other background checks, of 
     covered individuals.
       (h) Statutory Construction.--Nothing in this section shall 
     be construed to affect the process for review established 
     under section 70105(c) of title 46, United States Code, 
     including regulations issued pursuant to such section.

     SEC. 1523. NORTHERN BORDER RAILROAD PASSENGER REPORT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Administrator of the Transportation Security 
     Administration, the Secretary of Transportation, heads of 
     other appropriate Federal departments and agencies and Amtrak 
     shall transmit a report to the appropriate congressional 
     committees that contains--
       (1) a description of the current system for screening 
     passengers and baggage on passenger railroad service between 
     the United States and Canada;
       (2) an assessment of the current program to provide 
     preclearance of airline passengers between the United States 
     and Canada as outlined in ``The Agreement on Air Transport 
     Preclearance between the Government of Canada and the 
     Government of the United States of America'', dated January 
     18, 2001;
       (3) an assessment of the current program to provide 
     preclearance of freight railroad traffic between the United 
     States and Canada as outlined in the ``Declaration of 
     Principle for the Improved Security of Rail Shipments by 
     Canadian National Railway and Canadian Pacific Railway from 
     Canada to the United States'', dated April 2, 2003;
       (4) information on progress by the Department of Homeland 
     Security and other Federal agencies towards finalizing a 
     bilateral protocol with Canada that would provide for 
     preclearance of passengers on trains operating between the 
     United States and Canada;
       (5) a description of legislative, regulatory, budgetary, or 
     policy barriers within the United States Government to 
     providing prescreened passenger lists for railroad passengers 
     traveling between the United States and Canada to the 
     Department;
       (6) a description of the position of the Government of 
     Canada and relevant Canadian agencies with respect to 
     preclearance of such passengers;
       (7) a draft of any changes in existing Federal law 
     necessary to provide for prescreening of such passengers and 
     providing prescreened passenger lists to the Department; and
       (8) an analysis of the feasibility of reinstating in-
     transit inspections onboard international Amtrak trains.
       (b) Privacy and Civil Rights and Civil Liberties Issues.--
       (1) Consultation.--In preparing the report under this 
     section, the Secretary shall consult with the Chief Privacy 
     Officer of the Department and the Officer for Civil Rights 
     and Civil Liberties of the Department as appropriate and in 
     accordance with section 222 of the Homeland Security Act of 
     2002.
       (2) Privacy impact assessments.--In accordance with 
     sections 222 and 705 of the Homeland Security Act of 2002, 
     the report must contain a privacy impact assessment conducted 
     by the Chief Privacy Officer and a review conducted by the 
     Officer for Civil Rights and Civil Liberties.

     SEC. 1524. INTERNATIONAL RAILROAD SECURITY PROGRAM.

       (a) In General.--
       (1) The Secretary shall develop a system to detect both 
     undeclared passengers and contraband, with a primary focus on 
     the detection of nuclear and radiological materials entering 
     the United States by railroad.
       (2) System requirements.--In developing the system under 
     paragraph (1), the Secretary may, in consultation with the 
     Domestic Nuclear Detection Office, Customs and Border 
     Protection, and the Transportation Security Administration--
       (A) deploy radiation detection equipment and nonintrusive 
     imaging equipment at locations where railroad shipments cross 
     an international border to enter the United States;
       (B) consider the integration of radiation detection 
     technologies with other nonintrusive inspection technologies 
     where feasible;
       (C) ensure appropriate training, operations, and response 
     protocols are established for Federal, State, and local 
     personnel;
       (D) implement alternative procedures to check railroad 
     shipments at locations where the deployment of nonintrusive 
     inspection imaging equipment is determined to not be 
     practicable;
       (E) ensure, to the extent practicable, that such 
     technologies deployed can detect terrorists or weapons, 
     including weapons of mass destruction; and
       (F) take other actions, as appropriate, to develop the 
     system.
       (b) Additional Information.--The Secretary shall--
       (1) identify and seek the submission of additional data 
     elements for improved high-risk targeting related to the 
     movement of cargo through the international supply chain 
     utilizing a railroad prior to importation into the United 
     States;
       (2) utilize data collected and maintained by the Secretary 
     of Transportation in the targeting of high-risk cargo 
     identified under paragraph (1); and
       (3) analyze the data provided in this subsection to 
     identify high-risk cargo for inspection.
       (c) Report to Congress.--Not later than September 30, 2008, 
     the Secretary shall transmit to the appropriate congressional 
     committees a report that describes the progress of the system 
     being developed under subsection (a).
       (d) Definitions.--In this section:
       (1) International supply chain.--The term ``international 
     supply chain'' means the end-to-end process for shipping 
     goods to or from the United States, beginning at the point of 
     origin (including manufacturer, supplier, or vendor) through 
     a point of distribution to the destination.
       (2) Radiation detection equipment.--The term ``radiation 
     detection equipment'' means any technology that is capable of 
     detecting or identifying nuclear and radiological material or 
     nuclear and radiological explosive devices.
       (3) Inspection.--The term ``inspection'' means the 
     comprehensive process used by Customs and Border Protection 
     to assess goods entering the United States to appraise them 
     for duty purposes, to detect the presence of restricted or 
     prohibited items, and to ensure compliance with all 
     applicable laws.

     SEC. 1525. TRANSMISSION LINE REPORT.

       (a) Study.--The Comptroller General shall undertake an 
     assessment of the placement of high-voltage, direct-current, 
     electric transmission lines along active railroad and other 
     transportation rights-of-way. In conducting the assessment, 
     the Comptroller General shall evaluate any economic, safety, 
     and security risks and benefits to inhabitants living 
     adjacent to such rights-of-way and to consumers of electric 
     power transmitted by such transmission lines.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     the results of the assessment in subsection (a) to the 
     appropriate congressional committees.

     SEC. 1526. RAILROAD SECURITY ENHANCEMENTS.

       (a) Railroad Police Officers.--Section 28101 of title 49, 
     United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``Under''; 
     and
       (2) by adding at the end the following:
       ``(b) Assignment.--A railroad police officer employed by a 
     railroad carrier and certified or commissioned as a police 
     officer under the laws of a State may be temporarily assigned 
     to assist a second railroad carrier in carrying out law 
     enforcement duties upon the request of the second railroad 
     carrier, at which time the police officer shall be considered 
     to be an employee of the second railroad carrier and shall 
     have authority to enforce the laws of any jurisdiction in 
     which the second railroad carrier owns property to the same 
     extent as provided in subsection (a).''.
       (b) Model State Legislation.--Not later than November 2, 
     2007, the Secretary of Transportation shall develop and make 
     available to States model legislation to address the problem 
     of entities that claim to be railroad carriers in order to 
     establish and run a police force when the entities do not in 
     fact provide railroad transportation. In developing the model 
     State legislation the Secretary shall solicit the input of 
     the States, railroads carriers, and railroad carrier 
     employees. The Secretary shall review and, if necessary, 
     revise such model State legislation periodically.

     SEC. 1527. APPLICABILITY OF DISTRICT OF COLUMBIA LAW TO 
                   CERTAIN AMTRAK CONTRACTS.

       Section 24301 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(o) Applicability of District of Columbia Law.--Any lease 
     or contract entered into between Amtrak and the State of 
     Maryland, or any department or agency of the State of 
     Maryland, after the date of the enactment of this subsection 
     shall be governed by the laws of the District of Columbia.''.

     SEC. 1528. RAILROAD PREEMPTION CLARIFICATION.

       Section 20106 of title 49, United States Code, is amended 
     to read as follows:

     ``Sec. 20106. Preemption

       ``(a) National Uniformity of Regulation.--(1) Laws, 
     regulations, and orders related to railroad safety and laws, 
     regulations, and orders related to railroad security shall be 
     nationally uniform to the extent practicable.
       ``(2) A State may adopt or continue in force a law, 
     regulation, or order related to railroad safety or security 
     until the Secretary of Transportation (with respect to 
     railroad safety matters), or the Secretary of Homeland 
     Security (with respect to railroad security matters), 
     prescribes a regulation or issues an order covering the 
     subject matter of the State requirement. A

[[Page 20694]]

     State may adopt or continue in force an additional or more 
     stringent law, regulation, or order related to railroad 
     safety or security when the law, regulation, or order--
       ``(A) is necessary to eliminate or reduce an essentially 
     local safety or security hazard;
       ``(B) is not incompatible with a law, regulation, or order 
     of the United States Government; and
       ``(C) does not unreasonably burden interstate commerce.
       ``(b) Clarification Regarding State Law Causes of Action.--
     (1) Nothing in this section shall be construed to preempt an 
     action under State law seeking damages for personal injury, 
     death, or property damage alleging that a party--
       ``(A) has failed to comply with the Federal standard of 
     care established by a regulation or order issued by the 
     Secretary of Transportation (with respect to railroad safety 
     matters), or the Secretary of Homeland Security (with respect 
     to railroad security matters), covering the subject matter as 
     provided in subsection (a) of this section;
       ``(B) has failed to comply with its own plan, rule, or 
     standard that it created pursuant to a regulation or order 
     issued by either of the Secretaries; or
       ``(C) has failed to comply with a State law, regulation, or 
     order that is not incompatible with subsection (a)(2).
       ``(2) This subsection shall apply to all pending State law 
     causes of action arising from events or activities occurring 
     on or after January 18, 2002.
       ``(c) Jurisdiction.--Nothing in this section creates a 
     Federal cause of action on behalf of an injured party or 
     confers Federal question jurisdiction for such State law 
     causes of action.''.

          Subtitle C--Over-the-Road Bus and Trucking Security

     SEC. 1531. OVER-THE-ROAD BUS SECURITY ASSESSMENTS AND PLANS.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     that--
       (1) require each over-the-road bus operator assigned to a 
     high-risk tier under this section--
       (A) to conduct a vulnerability assessment in accordance 
     with subsections (c) and (d); and
       (B) to prepare, submit to the Secretary for approval, and 
     implement a security plan in accordance with subsection (e); 
     and
       (2) establish standards and guidelines for developing and 
     implementing the vulnerability assessments and security plans 
     for carriers assigned to high-risk tiers consistent with this 
     section.
       (b) Non High-Risk Programs.--The Secretary may establish a 
     security program for over-the-road bus operators not assigned 
     to a high-risk tier, including--
       (1) guidance for such operators in conducting vulnerability 
     assessments and preparing and implementing security plans, as 
     determined appropriate by the Secretary; and
       (2) a process to review and approve such assessments and 
     plans, as appropriate.
       (c) Deadline for Submission.--Not later than 9 months after 
     the date of issuance of the regulations under subsection (a), 
     the vulnerability assessments and security plans required by 
     such regulations for over-the-road bus operators assigned to 
     a high-risk tier shall be completed and submitted to the 
     Secretary for review and approval.
       (d) Vulnerability Assessments.--
       (1) Requirements.--The Secretary shall provide technical 
     assistance and guidance to over-the-road bus operators in 
     conducting vulnerability assessments under this section and 
     shall require that each vulnerability assessment of an 
     operator assigned to a high-risk tier under this section 
     includes, as appropriate--
       (A) identification and evaluation of critical assets and 
     infrastructure, including platforms, stations, terminals, and 
     information systems;
       (B) identification of the vulnerabilities to those assets 
     and infrastructure; and
       (C) identification of weaknesses in--
       (i) physical security;
       (ii) passenger and cargo security;
       (iii) the security of programmable electronic devices, 
     computers, or other automated systems which are used in 
     providing over-the-road bus transportation;
       (iv) alarms, cameras, and other protection systems;
       (v) communications systems and utilities needed for over-
     the-road bus security purposes, including dispatching 
     systems;
       (vi) emergency response planning;
       (vii) employee training; and
       (viii) such other matters as the Secretary determines 
     appropriate.
       (2) Threat information.--The Secretary shall provide in a 
     timely manner to the appropriate employees of an over-the-
     road bus operator, as designated by the over-the-road bus 
     operator, threat information that is relevant to the operator 
     when preparing and submitting a vulnerability assessment and 
     security plan, including an assessment of the most likely 
     methods that could be used by terrorists to exploit 
     weaknesses in over-the-road bus security.
       (e) Security Plans.--
       (1) Requirements.--The Secretary shall provide technical 
     assistance and guidance to over-the-road bus operators in 
     preparing and implementing security plans under this section 
     and shall require that each security plan of an over-the-road 
     bus operator assigned to a high-risk tier under this section 
     includes, as appropriate--
       (A) the identification of a security coordinator having 
     authority--
       (i) to implement security actions under the plan;
       (ii) to coordinate security improvements; and
       (iii) to receive communications from appropriate Federal 
     officials regarding over-the-road bus security;
       (B) a list of needed capital and operational improvements;
       (C) procedures to be implemented or used by the over-the-
     road bus operator in response to a terrorist attack, 
     including evacuation and passenger communication plans that 
     include individuals with disabilities, as appropriate;
       (D) the identification of steps taken with State and local 
     law enforcement agencies, emergency responders, and Federal 
     officials to coordinate security measures and plans for 
     response to a terrorist attack;
       (E) a strategy and timeline for conducting training under 
     section 1534;
       (F) enhanced security measures to be taken by the over-the-
     road bus operator when the Secretary declares a period of 
     heightened security risk;
       (G) plans for providing redundant and backup systems 
     required to ensure the continued operation of critical 
     elements of the over-the-road bus operator's system in the 
     event of a terrorist attack or other incident; and
       (H) such other actions or procedures as the Secretary 
     determines are appropriate to address the security of over-
     the-road bus operators.
       (2) Security coordinator requirements.--The Secretary shall 
     require that the individual serving as the security 
     coordinator identified in paragraph (1)(A) is a citizen of 
     the United States. The Secretary may waive this requirement 
     with respect to an individual if the Secretary determines 
     that it is appropriate to do so based on a background check 
     of the individual and a review of the consolidated terrorist 
     watchlist.
       (f) Deadline for Review Process.--Not later than 6 months 
     after receiving the assessments and plans required under this 
     section, the Secretary shall--
       (1) review each vulnerability assessment and security plan 
     submitted to the Secretary in accordance with subsection (c);
       (2) require amendments to any security plan that does not 
     meet the requirements of this section; and
       (3) approve any vulnerability assessment or security plan 
     that meets the requirements of this section.
       (g) Interim Security Measures.--The Secretary may require 
     over-the-road bus operators, during the period before the 
     deadline established under subsection (c), to submit a 
     security plan to implement any necessary interim security 
     measures essential to providing adequate security of the 
     over-the-road bus operator's system. An interim plan required 
     under this subsection shall be superseded by a plan required 
     under subsection (c).
       (h) Tier Assignment.--The Secretary shall assign each over-
     the-road bus operator to a risk-based tier established by the 
     Secretary.
       (1) Provision of information.--The Secretary may request, 
     and an over-the-road bus operator shall provide, information 
     necessary for the Secretary to assign an over-the-road bus 
     operator to the appropriate tier under this subsection.
       (2) Notification.--Not later than 60 days after the date an 
     over-the-road bus operator is assigned to a tier under this 
     section, the Secretary shall notify the operator of the tier 
     to which it is assigned and the reasons for such assignment.
       (3) High-risk tiers.--At least one of the tiers established 
     by the Secretary under this section shall be a tier 
     designated for high-risk over-the-road bus operators.
       (4) Reassignment.--The Secretary may reassign an over-the-
     road bus operator to another tier, as appropriate, in 
     response to changes in risk and the Secretary shall notify 
     the over-the-road bus operator within 60 days after such 
     reassignment and provide the operator with the reasons for 
     such reassignment.
       (i) Existing Procedures, Protocols, and Standards.--
       (1) Determination.--In response to a petition by an over-
     the-road bus operator or at the discretion of the Secretary, 
     the Secretary may determine that existing procedures, 
     protocols, and standards meet all or part of the requirements 
     of this section regarding vulnerability assessments and 
     security plans.
       (2) Election.--Upon review and written determination by the 
     Secretary that existing procedures, protocols, or standards 
     of an over-the-road bus operator satisfy the requirements of 
     this section, the over-the-road bus operator may elect to 
     comply with those procedures, protocols, or standards instead 
     of the requirements of this section.
       (3) Partial approval.--If the Secretary determines that the 
     existing procedures, protocols, or standards of an over-the-
     road bus operator satisfy only part of the requirements of 
     this section, the Secretary may accept such submission, but 
     shall require submission by the operator of any additional 
     information relevant to the vulnerability assessment and 
     security plan of the operator to ensure that the remaining 
     requirements of this section are fulfilled.
       (4) Notification.--If the Secretary determines that 
     particular existing procedures, protocols, or standards of an 
     over-the-road bus operator under this subsection do not 
     satisfy the requirements of this section, the Secretary shall 
     provide to the operator a written notification that includes 
     an explanation of the reasons for nonacceptance.

[[Page 20695]]

       (5) Review.--Nothing in this subsection shall relieve the 
     Secretary of the obligation--
       (A) to review the vulnerability assessment and security 
     plan submitted by an over-the-road bus operator under this 
     section; and
       (B) to approve or disapprove each submission on an 
     individual basis.
       (j) Periodic Evaluation by Over-the-Road Bus Provider 
     Required.--
       (1) Submission of evaluation.--Not later than 3 years after 
     the date on which a vulnerability assessment or security plan 
     required to be submitted to the Secretary under subsection 
     (c) is approved, and at least once every 5 years thereafter 
     (or on such a schedule as the Secretary may establish by 
     regulation), an over-the-road bus operator who submitted a 
     vulnerability assessment and security plan and who is still 
     assigned to the high-risk tier shall also submit to the 
     Secretary an evaluation of the adequacy of the vulnerability 
     assessment and security plan that includes a description of 
     any material changes made to the vulnerability assessment or 
     security plan.
       (2) Review of evaluation.--Not later than 180 days after 
     the date on which an evaluation is submitted, the Secretary 
     shall review the evaluation and notify the over-the-road bus 
     operator submitting the evaluation of the Secretary's 
     approval or disapproval of the evaluation.
       (k) Shared Facilities.--The Secretary may permit under this 
     section the development and implementation of coordinated 
     vulnerability assessments and security plans to the extent 
     that an over-the-road bus operator shares facilities with, or 
     is colocated with, other transportation entities or providers 
     that are required to develop vulnerability assessments and 
     security plans under Federal law.
       (l) Nondisclosure of Information.--
       (1) Submission of information to congress.--Nothing in this 
     section shall be construed as authorizing the withholding of 
     any information from Congress.
       (2) Disclosure of independently furnished information.--
     Nothing in this section shall be construed as affecting any 
     authority or obligation of a Federal agency to disclose any 
     record or information that the Federal agency obtains from an 
     over-the-road bus operator under any other Federal law.

     SEC. 1532. OVER-THE-ROAD BUS SECURITY ASSISTANCE.

       (a) In General.--The Secretary shall establish a program 
     for making grants to eligible private operators providing 
     transportation by an over-the-road bus for security 
     improvements described in subsection (b).
       (b) Uses of Funds.--A recipient of a grant received under 
     subsection (a) shall use the grant funds for one or more of 
     the following:
       (1) Constructing and modifying terminals, garages, and 
     facilities, including terminals and other over-the-road bus 
     facilities owned by State or local governments, to increase 
     their security.
       (2) Modifying over-the-road buses to increase their 
     security.
       (3) Protecting or isolating the driver of an over-the-road 
     bus.
       (4) Acquiring, upgrading, installing, or operating 
     equipment, software, or accessorial services for collection, 
     storage, or exchange of passenger and driver information 
     through ticketing systems or other means and for information 
     links with government agencies, for security purposes.
       (5) Installing cameras and video surveillance equipment on 
     over-the-road buses and at terminals, garages, and over-the-
     road bus facilities.
       (6) Establishing and improving an emergency communications 
     system linking drivers and over-the-road buses to the 
     recipient's operations center or linking the operations 
     center to law enforcement and emergency personnel.
       (7) Implementing and operating passenger screening programs 
     for weapons and explosives.
       (8) Public awareness campaigns for enhanced over-the-road 
     bus security.
       (9) Operating and capital costs associated with over-the-
     road bus security awareness, preparedness, and response 
     training, including training under section 1534 and training 
     developed by institutions of higher education and by 
     nonprofit employee labor organizations, for over-the-road bus 
     employees, including frontline employees.
       (10) Chemical, biological, radiological, or explosive 
     detection, including canine patrols for such detection.
       (11) Overtime reimbursement, including reimbursement of 
     State, local, and tribal governments for costs, for enhanced 
     security personnel assigned to duties related to over-the-
     road bus security during periods of high or severe threat 
     levels, National Special Security Events, or other periods of 
     heightened security as determined by the Secretary.
       (12) Live or simulated exercises, including those described 
     in section 1533.
       (13) Operational costs to hire, train, and employ police 
     and security officers, including canine units, assigned to 
     full-time security or counterterrorism duties related to 
     over-the-road bus transportation, including reimbursement of 
     State, local, and tribal government costs for such personnel.
       (14) Development of assessments or security plans under 
     section 1531.
       (15) Such other improvements as the Secretary considers 
     appropriate.
       (c) Due Consideration.--In making grants under this 
     section, the Secretary shall prioritize grant funding based 
     on security risks to bus passengers and the ability of a 
     project to reduce, or enhance response to, that risk, and 
     shall not penalize private operators of over-the-road buses 
     that have taken measures to enhance over-the-road bus 
     transportation security prior to September 11, 2001.
       (d) Department of Homeland Security Responsibilities.--In 
     carrying out the responsibilities under subsection (a), the 
     Secretary shall--
       (1) determine the requirements for recipients of grants 
     under this section, including application requirements;
       (2) select grant recipients;
       (3) award the funds authorized by this section based on 
     risk, as identified by the plans required under section 1531 
     or assessment or plan described in subsection (f)(2); and
       (4) pursuant to subsection (c), establish priorities for 
     the use of funds for grant recipients.
       (e) Distribution of Grants.--Not later than 90 days after 
     the date of enactment of this Act, the Secretary and the 
     Secretary of Transportation shall determine the most 
     effective and efficient way to distribute grant funds to the 
     recipients of grants determined by the Secretary under 
     subsection (a). Subject to the determination made by the 
     Secretaries, the Secretary may transfer funds to the 
     Secretary of Transportation for the purposes of disbursing 
     funds to the grant recipient.
       (f) Eligibility.--
       (1) A private operator providing transportation by an over-
     the-road bus is eligible for a grant under this section if 
     the operator has completed a vulnerability assessment and 
     developed a security plan that the Secretary has approved 
     under section 1531. Grant funds may only be used for 
     permissible uses under subsection (b) to further an over-the-
     road bus security plan.
       (2) Notwithstanding the requirements for eligibility and 
     uses in paragraph (1), prior to the earlier of one year after 
     the date of issuance of final regulations requiring 
     vulnerability assessments and security plans under section 
     1531 or 3 years after the date of enactment of this Act, the 
     Secretary may award grants under this section for over-the-
     road bus security improvements listed under subsection (b) 
     based upon over-the-road bus vulnerability assessments and 
     security plans that the Secretary deems are sufficient for 
     the purposes of this section but have not been approved by 
     the Secretary in accordance with section 1531.
       (g) Subject to Certain Terms and Conditions.--Except as 
     otherwise specifically provided in this section, a grant made 
     under this section shall be subject to the terms and 
     conditions applicable to subrecipients who provide over-the-
     road bus transportation under section 5311(f) of title 49, 
     United States Code, and such other terms and conditions as 
     are determined necessary by the Secretary.
       (h) Limitation on Uses of Funds.--A grant made under this 
     section may not be used to make any State or local government 
     cost-sharing contribution under any other Federal law.
       (i) Annual Reports.--Each recipient of a grant under this 
     section shall report annually to the Secretary and on the use 
     of such grant funds.
       (j) Consultation.--In carrying out this section, the 
     Secretary shall consult with over-the-road bus operators and 
     nonprofit employee labor organizations representing over-the-
     road bus employees, public safety and law enforcement 
     officials.
       (k) Authorization.--
       (1) In general.--From the amounts appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503 of this Act, there shall be made available to 
     the Secretary to make grants under this section--
       (A) $12,000,000 for fiscal year 2008;
       (B) $25,000,000 for fiscal year 2009;
       (C) $25,000,000 for fiscal year 2010; and
       (D) $25,000,000 for fiscal year 2011.
       (2) Period of availability.--Sums appropriated to carry out 
     this section shall remain available until expended.

     SEC. 1533. OVER-THE-ROAD BUS EXERCISES.

       (a) In General.--The Secretary shall establish a program 
     for conducting security exercises for over-the-road bus 
     transportation for the purpose of assessing and improving the 
     capabilities of entities described in subsection (b) to 
     prevent, prepare for, mitigate, respond to, and recover from 
     acts of terrorism.
       (b) Covered Entities.--Entities to be assessed under the 
     program shall include--
       (1) Federal, State, and local agencies and tribal 
     governments;
       (2) over-the-road bus operators and over-the-road bus 
     terminal owners and operators;
       (3) governmental and nongovernmental emergency response 
     providers and law enforcement agencies; and
       (4) any other organization or entity that the Secretary 
     determines appropriate.
       (c) Requirements.--The Secretary shall ensure that the 
     program--
       (1) consolidates existing security exercises for over-the-
     road bus operators and terminals administered by the 
     Department and the Department of Transportation, as jointly 
     determined by the Secretary and the Secretary of 
     Transportation, unless the Secretary waives this 
     consolidation requirement, as appropriate;
       (2) consists of exercises that are--
       (A) scaled and tailored to the needs of the over-the-road 
     bus operators and terminals, including addressing the needs 
     of the elderly and individuals with disabilities;
       (B) live, in the case of the most at-risk facilities to a 
     terrorist attack;
       (C) coordinated with appropriate officials;
       (D) as realistic as practicable and based on current risk 
     assessments, including credible threats, vulnerabilities, and 
     consequences;
       (E) inclusive, as appropriate, of over-the-road bus 
     frontline employees; and

[[Page 20696]]

       (F) consistent with the National Incident Management 
     System, the National Response Plan, the National 
     Infrastructure Protection Plan, the National Preparedness 
     Guidance, the National Preparedness Goal, and other such 
     national initiatives;
       (3) provides that exercises described in paragraph (2) will 
     be--
       (A) evaluated by the Secretary against clear and consistent 
     performance measures;
       (B) assessed by the Secretary to identify best practices, 
     which shall be shared, as appropriate, with operators 
     providing over-the-road bus transportation, nonprofit 
     employee organizations that represent over-the-road bus 
     employees, Federal, State, local, and tribal officials, 
     governmental and nongovernmental emergency response 
     providers, and law enforcement personnel; and
       (C) used to develop recommendations, as appropriate, 
     provided to over-the-road bus operators and terminal owners 
     and operators on remedial action to be taken in response to 
     lessons learned;
       (4) allows for proper advanced notification of communities 
     and local governments in which exercises are held, as 
     appropriate; and
       (5) assists State, local, and tribal governments and over-
     the-road bus operators and terminal owners and operators in 
     designing, implementing, and evaluating additional exercises 
     that conform to the requirements of paragraph (2).
       (d) National Exercise Program.--The Secretary shall ensure 
     that the exercise program developed under subsection (c) is 
     consistent with the National Exercise Program established 
     under section 648 of the Post Katrina Emergency Management 
     Reform Act (Public Law 109-295; 6 U.S.C. 748).

     SEC. 1534. OVER-THE-ROAD BUS SECURITY TRAINING PROGRAM.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall develop and issue 
     regulations for an over-the-road bus training program to 
     prepare over-the-road bus frontline employees for potential 
     security threats and conditions. The regulations shall take 
     into consideration any current security training requirements 
     or best practices.
       (b) Consultation.--The Secretary shall develop regulations 
     under subsection (a) in consultation with--
       (1) appropriate law enforcement, fire service, emergency 
     response, security, and terrorism experts;
       (2) operators providing over-the-road bus transportation; 
     and
       (3) nonprofit employee labor organizations representing 
     over-the-road bus employees and emergency response personnel.
       (c) Program Elements.--The regulations developed under 
     subsection (a) shall require security training programs, to 
     include, at a minimum, elements to address the following, as 
     applicable:
       (1) Determination of the seriousness of any occurrence or 
     threat.
       (2) Driver and passenger communication and coordination.
       (3) Appropriate responses to defend or protect oneself.
       (4) Use of personal and other protective equipment.
       (5) Evacuation procedures for passengers and over-the-road 
     bus employees, including individuals with disabilities and 
     the elderly.
       (6) Psychology, behavior, and methods of terrorists, 
     including observation and analysis.
       (7) Training related to psychological responses to 
     terrorist incidents, including the ability to cope with 
     hijacker behavior and passenger responses.
       (8) Live situational training exercises regarding various 
     threat conditions, including tunnel evacuation procedures.
       (9) Recognition and reporting of dangerous substances, 
     suspicious packages, and situations.
       (10) Understanding security incident procedures, including 
     procedures for communicating with emergency response 
     providers and for on-scene interaction with such emergency 
     response providers.
       (11) Operation and maintenance of security equipment and 
     systems.
       (12) Other security training activities that the Secretary 
     considers appropriate.
       (d) Required Programs.--
       (1) Development and submission to secretary.--Not later 
     than 90 days after the Secretary issues the regulations under 
     subsection (a), each over-the-road bus operator shall develop 
     a security training program in accordance with such 
     regulations and submit the program to the Secretary for 
     approval.
       (2) Approval.--Not later than 60 days after receiving a 
     security training program under this subsection, the 
     Secretary shall approve the program or require the over-the-
     road bus operator that developed the program to make any 
     revisions to the program that the Secretary considers 
     necessary for the program to meet the requirements of the 
     regulations. An over-the-road bus operator shall respond to 
     the Secretary's comments not later than 30 days after 
     receiving them.
       (3) Training.--Not later than 1 year after the Secretary 
     approves a security training program in accordance with this 
     subsection, the over-the-road bus operator that developed the 
     program shall complete the training of all over-the-road bus 
     frontline employees who were hired by the operator more than 
     30 days preceding such date. For such employees employed less 
     than 30 days by an operator preceding such date, training 
     shall be completed within the first 60 days of employment.
       (4) Updates of regulations and program revisions.--The 
     Secretary shall periodically review and update, as 
     appropriate, the training regulations issued under subsection 
     (a) to reflect new or changing security threats. Each over-
     the-road bus operator shall revise its training program 
     accordingly and provide additional training as necessary to 
     its employees within a reasonable time after the regulations 
     are updated.
       (e) National Training Program.--The Secretary shall ensure 
     that the training program developed under subsection (a) is a 
     component of the National Training Program established under 
     section 648 of the Post Katrina Emergency Management Reform 
     Act (Public Law 109-295; 6 U.S.C. 748).
       (f) Reporting Requirements.--Not later than 2 years after 
     the date of regulation issuance, the Secretary shall review 
     implementation of the training program of a representative 
     sample of over-the-road bus operators and over-the-road bus 
     frontline employees, and report to the appropriate 
     congressional committees of such reviews. The Secretary may 
     submit the report in both classified and redacted formats as 
     necessary.

     SEC. 1535. OVER-THE-ROAD BUS SECURITY RESEARCH AND 
                   DEVELOPMENT.

       (a) Establishment of Research and Development Program.--The 
     Secretary, acting through the Under Secretary for Science and 
     Technology and the Administrator of the Transportation 
     Security Administration, shall carry out a research and 
     development program for the purpose of improving the security 
     of over-the-road buses.
       (b) Eligible Projects.--The research and development 
     program may include projects--
       (1) to reduce the vulnerability of over-the-road buses, 
     stations, terminals, and equipment to explosives and 
     hazardous chemical, biological, and radioactive substances, 
     including the development of technology to screen passengers 
     in large numbers with minimal interference and disruption;
       (2) to test new emergency response and recovery techniques 
     and technologies, including those used at international 
     borders;
       (3) to develop improved technologies, including those for--
       (A) emergency response training, including training in a 
     tunnel environment, if appropriate; and
       (B) security and redundancy for critical communications, 
     electrical power, computer, and over-the-road bus control 
     systems; and
       (4) to address other vulnerabilities and risks identified 
     by the Secretary.
       (c) Coordination With Other Research Initiatives.--The 
     Secretary--
       (1) shall ensure that the research and development program 
     is consistent with the other transportation security research 
     and development programs required by this Act;
       (2) shall, to the extent practicable, coordinate the 
     research and development activities of the Department with 
     other ongoing research and development security-related 
     initiatives, including research being conducted by--
       (A) the Department of Transportation, including University 
     Transportation Centers and other institutes, centers, and 
     simulators funded by the Department of Transportation;
       (B) the National Academy of Sciences;
       (C) the Technical Support Working Group;
       (D) other Federal departments and agencies; and
       (E) other Federal and private research laboratories, 
     research entities, and institutions of higher education, 
     including Historically Black Colleges and Universities, 
     Hispanic Serving Institutions, and Indian Tribally Controlled 
     Colleges and Universities;
       (3) shall carry out any research and development project 
     authorized by this section through a reimbursable agreement 
     with an appropriate Federal agency, if the agency--
       (A) is currently sponsoring a research and development 
     project in a similar area; or
       (B) has a unique facility or capability that would be 
     useful in carrying out the project;
       (4) may award grants and enter into cooperative agreements, 
     contracts, other transactions, or reimbursable agreements to 
     the entities described in paragraph (2) and eligible 
     recipients under section 1532; and
       (5) shall make reasonable efforts to enter into memoranda 
     of understanding, contracts, grants, cooperative agreements, 
     or other transactions with private operators providing over-
     the-road bus transportation willing to contribute assets, 
     physical space, and other resources.
       (d) Privacy and Civil Rights and Civil Liberties Issues.--
       (1) Consultation.--In carrying out research and development 
     projects under this section, the Secretary shall consult with 
     the Chief Privacy Officer of the Department and the Officer 
     for Civil Rights and Civil Liberties of the Department as 
     appropriate and in accordance with section 222 of the 
     Homeland Security Act of 2002.
       (2) Privacy impact assessments.--In accordance with 
     sections 222 and 705 of the Homeland Security Act of 2002, 
     the Chief Privacy Officer shall conduct privacy impact 
     assessments and the Officer for Civil Rights and Civil 
     Liberties shall conduct reviews, as appropriate, for research 
     and development initiatives developed under this section that 
     the Secretary determines could have an impact on privacy, 
     civil rights, or civil liberties.
       (e) Authorization of Appropriations.--
       (1) In general.--From the amounts appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503

[[Page 20697]]

     of this Act, there shall be made available to the Secretary 
     to carry out this section--
       (A) $2,000,000 for fiscal year 2008;
       (B) $2,000,000 for fiscal year 2009;
       (C) $2,000,000 for fiscal year 2010; and
       (D) $2,000,000 for fiscal year 2011.
       (2) Period of availability.--Such sums shall remain 
     available until expended.

     SEC. 1536. MOTOR CARRIER EMPLOYEE PROTECTIONS.

       Section 31105 of title 49, United States Code, is amended 
     to read:
       ``(a) Prohibitions.--(1) A person may not discharge an 
     employee, or discipline or discriminate against an employee 
     regarding pay, terms, or privileges of employment, because--
       ``(A)(i) the employee, or another person at the employee's 
     request, has filed a complaint or begun a proceeding related 
     to a violation of a commercial motor vehicle safety or 
     security regulation, standard, or order, or has testified or 
     will testify in such a proceeding; or
       ``(ii) the person perceives that the employee has filed or 
     is about to file a complaint or has begun or is about to 
     begin a proceeding related to a violation of a commercial 
     motor vehicle safety or security regulation, standard, or 
     order;
       ``(B) the employee refuses to operate a vehicle because--
       ``(i) the operation violates a regulation, standard, or 
     order of the United States related to commercial motor 
     vehicle safety, health, or security; or
       ``(ii) the employee has a reasonable apprehension of 
     serious injury to the employee or the public because of the 
     vehicle's hazardous safety or security condition;
       ``(C) the employee accurately reports hours on duty 
     pursuant to chapter 315;
       ``(D) the employee cooperates, or the person perceives that 
     the employee is about to cooperate, with a safety or security 
     investigation by the Secretary of Transportation, the 
     Secretary of Homeland Security, or the National 
     Transportation Safety Board; or
       ``(E) the employee furnishes, or the person perceives that 
     the employee is or is about to furnish, information to the 
     Secretary of Transportation, the Secretary of Homeland 
     Security, the National Transportation Safety Board, or any 
     Federal, State, or local regulatory or law enforcement agency 
     as to the facts relating to any accident or incident 
     resulting in injury or death to an individual or damage to 
     property occurring in connection with commercial motor 
     vehicle transportation.
       ``(2) Under paragraph (1)(B)(ii) of this subsection, an 
     employee's apprehension of serious injury is reasonable only 
     if a reasonable individual in the circumstances then 
     confronting the employee would conclude that the hazardous 
     safety or security condition establishes a real danger of 
     accident, injury, or serious impairment to health. To qualify 
     for protection, the employee must have sought from the 
     employer, and been unable to obtain, correction of the 
     hazardous safety or security condition.
       ``(b) Filing Complaints and Procedures.--(1) An employee 
     alleging discharge, discipline, or discrimination in 
     violation of subsection (a) of this section, or another 
     person at the employee's request, may file a complaint with 
     the Secretary of Labor not later than 180 days after the 
     alleged violation occurred. All complaints initiated under 
     this section shall be governed by the legal burdens of proof 
     set forth in section 42121(b). On receiving the complaint, 
     the Secretary of Labor shall notify, in writing, the person 
     alleged to have committed the violation of the filing of the 
     complaint.
       ``(2)(A) Not later than 60 days after receiving a 
     complaint, the Secretary of Labor shall conduct an 
     investigation, decide whether it is reasonable to believe the 
     complaint has merit, and notify, in writing, the complainant 
     and the person alleged to have committed the violation of the 
     findings. If the Secretary of Labor decides it is reasonable 
     to believe a violation occurred, the Secretary of Labor shall 
     include with the decision findings and a preliminary order 
     for the relief provided under paragraph (3) of this 
     subsection.
       ``(B) Not later than 30 days after the notice under 
     subparagraph (A) of this paragraph, the complainant and the 
     person alleged to have committed the violation may file 
     objections to the findings or preliminary order, or both, and 
     request a hearing on the record. The filing of objections 
     does not stay a reinstatement ordered in the preliminary 
     order. If a hearing is not requested within the 30 days, the 
     preliminary order is final and not subject to judicial 
     review.
       ``(C) A hearing shall be conducted expeditiously. Not later 
     than 120 days after the end of the hearing, the Secretary of 
     Labor shall issue a final order. Before the final order is 
     issued, the proceeding may be ended by a settlement agreement 
     made by the Secretary of Labor, the complainant, and the 
     person alleged to have committed the violation.
       ``(3)(A) If the Secretary of Labor decides, on the basis of 
     a complaint, a person violated subsection (a) of this 
     section, the Secretary of Labor shall order the person to--
       ``(i) take affirmative action to abate the violation;
       ``(ii) reinstate the complainant to the former position 
     with the same pay and terms and privileges of employment; and
       ``(iii) pay compensatory damages, including backpay with 
     interest and compensation for any special damages sustained 
     as a result of the discrimination, including litigation 
     costs, expert witness fees, and reasonable attorney fees.
       ``(B) If the Secretary of Labor issues an order under 
     subparagraph (A) of this paragraph and the complainant 
     requests, the Secretary of Labor may assess against the 
     person against whom the order is issued the costs (including 
     attorney fees) reasonably incurred by the complainant in 
     bringing the complaint. The Secretary of Labor shall 
     determine the costs that reasonably were incurred.
       ``(C) Relief in any action under subsection (b) may include 
     punitive damages in an amount not to exceed $250,000.
       ``(c) De Novo Review.--With respect to a complaint under 
     paragraph (1), if the Secretary of Labor has not issued a 
     final decision within 210 days after the filing of the 
     complaint and if the delay is not due to the bad faith of the 
     employee, the employee may bring an original action at law or 
     equity for de novo review in the appropriate district court 
     of the United States, which shall have jurisdiction over such 
     an action without regard to the amount in controversy, and 
     which action shall, at the request of either party to such 
     action, be tried by the court with a jury.
       ``(d) Judicial Review and Venue.--A person adversely 
     affected by an order issued after a hearing under subsection 
     (b) of this section may file a petition for review, not later 
     than 60 days after the order is issued, in the court of 
     appeals of the United States for the circuit in which the 
     violation occurred or the person resided on the date of the 
     violation. Review shall conform to chapter 7 of title 5. The 
     review shall be heard and decided expeditiously. An order of 
     the Secretary of Labor subject to review under this 
     subsection is not subject to judicial review in a criminal or 
     other civil proceeding.
       ``(e) Civil Actions to Enforce.--If a person fails to 
     comply with an order issued under subsection (b) of this 
     section, the Secretary of Labor shall bring a civil action to 
     enforce the order in the district court of the United States 
     for the judicial district in which the violation occurred.
       ``(f) No Preemption.--Nothing in this section preempts or 
     diminishes any other safeguards against discrimination, 
     demotion, discharge, suspension, threats, harassment, 
     reprimand, retaliation, or any other manner of discrimination 
     provided by Federal or State law.
       ``(g) Rights Retained by Employee.--Nothing in this section 
     shall be deemed to diminish the rights, privileges, or 
     remedies of any employee under any Federal or State law or 
     under any collective bargaining agreement. The rights and 
     remedies in this section may not be waived by any agreement, 
     policy, form, or condition of employment.
       ``(h) Disclosure of Identity.--
       ``(1) Except as provided in paragraph (2) of this 
     subsection, or with the written consent of the employee, the 
     Secretary of Transportation or the Secretary of Homeland 
     Security may not disclose the name of an employee who has 
     provided information about an alleged violation of this part, 
     or a regulation prescribed or order issued under any of those 
     provisions.
       ``(2) The Secretary of Transportation or the Secretary of 
     Homeland Security shall disclose to the Attorney General the 
     name of an employee described in paragraph (1) of this 
     subsection if the matter is referred to the Attorney General 
     for enforcement. The Secretary making such disclosure shall 
     provide reasonable advance notice to the affected employee if 
     disclosure of that person's identity or identifying 
     information is to occur.
       ``(i) Process for Reporting Security Problems to the 
     Department of Homeland Security.--
       ``(1) Establishment of process.--The Secretary of Homeland 
     Security shall establish through regulations, after an 
     opportunity for notice and comment, a process by which any 
     person may report to the Secretary of Homeland Security 
     regarding motor carrier vehicle security problems, 
     deficiencies, or vulnerabilities.
       ``(2) Acknowledgment of receipt.--If a report submitted 
     under paragraph (1) identifies the person making the report, 
     the Secretary of Homeland Security shall respond promptly to 
     such person and acknowledge receipt of the report.
       ``(3) Steps to address problem.--The Secretary of Homeland 
     Security shall review and consider the information provided 
     in any report submitted under paragraph (1) and shall take 
     appropriate steps to address any problems or deficiencies 
     identified.
       ``(j) Definition.--In this section, `employee' means a 
     driver of a commercial motor vehicle (including an 
     independent contractor when personally operating a commercial 
     motor vehicle), a mechanic, a freight handler, or an 
     individual not an employer, who--
       ``(1) directly affects commercial motor vehicle safety or 
     security in the course of employment by a commercial motor 
     carrier; and
       ``(2) is not an employee of the United States Government, a 
     State, or a political subdivision of a State acting in the 
     course of employment.''.

     SEC. 1537. UNIFIED CARRIER REGISTRATION SYSTEM AGREEMENT.

       (a) Reenactment of SSRS.--Section 14504 of title 49, United 
     States Code, as that section was in effect on December 31, 
     2006, shall be in effect as a law of the United States for 
     the period beginning on January 1, 2007, ending on the 
     earlier of January 1, 2008, or the effective date of the 
     final regulations issued pursuant to subsection (b).
       (b) Deadline for Final Regulations.--Not later than October 
     1, 2007, the Federal Motor Carrier Safety Administration 
     shall issue final regulations to establish the Unified 
     Carrier Registration System, as required by section 13908 of 
     title 49, United States Code, and set fees for the unified 
     carrier registration agreement for calendar year 2007 or 
     subsequent calendar years to

[[Page 20698]]

     be charged to motor carriers, motor private carriers, and 
     freight forwarders under such agreement, as required by 
     14504a of title 49, United States Code.
       (c) Repeal of SSRS.--Section 4305(a) of the Safe, 
     Accountable, Flexible Efficient Transportation Equity Act: A 
     Legacy for Users (119 Stat. 1764) is amended by striking 
     ``the first January'' and all that follows through ``this 
     Act'' and inserting ``January 1, 2008''.

     SEC. 1538. SCHOOL BUS TRANSPORTATION SECURITY.

       (a) School Bus Security Risk Assessment.--Not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall transmit to the appropriate congressional committees a 
     report, including a classified report, as appropriate, 
     containing a comprehensive assessment of the risk of a 
     terrorist attack on the Nation's school bus transportation 
     system in accordance with the requirements of this section.
       (b) Contents of Risk Assessment.--The assessment shall 
     include--
       (1) an assessment of security risks to the Nation's school 
     bus transportation system, including publicly and privately 
     operated systems;
       (2) an assessment of actions already taken by operators or 
     others to address identified security risks; and
       (3) an assessment of whether additional actions and 
     investments are necessary to improve the security of 
     passengers traveling on school buses and a list of such 
     actions or investments, if appropriate.
       (c) Consultation.--In conducting the risk assessment, the 
     Secretary shall consult with administrators and officials of 
     school systems, representatives of the school bus industry, 
     including both publicly and privately operated systems, 
     public safety and law enforcement officials, and nonprofit 
     employee labor organizations representing school bus drivers.

     SEC. 1539. TECHNICAL AMENDMENT.

       Section 1992(d)(7) of title 18, United States Code, is 
     amended by inserting ``intercity bus transportation'' after 
     ``includes''.

     SEC. 1540. TRUCK SECURITY ASSESSMENT.

       (a) Definition.--For the purposes of this section, the term 
     ``truck'' means any self-propelled or towed motor vehicle 
     used on a highway in interstate commerce to transport 
     property when the vehicle--
       (1) has a gross vehicle weight rating or gross combination 
     weight rating, or gross vehicle weight or gross combination 
     weight, of 4,536 kg (10,001 pounds) or more, whichever is 
     greater; or
       (2) is used in transporting material found by the Secretary 
     of Transportation to be hazardous under section 5103 of title 
     49, United States Code, and transported in a quantity 
     requiring placarding under regulations prescribed by the 
     Secretary under subtitle B, chapter I, subchapter C of title 
     49, Code of Federal Regulations.
       (b) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in coordination with 
     the Secretary of Transportation, shall transmit a report to 
     the appropriate congressional committees on truck security 
     issues that includes--
       (1) a security risk assessment of the trucking industry;
       (2) an assessment of actions already taken by both public 
     and private entities to address identified security risks;
       (3) an assessment of the economic impact that security 
     upgrades of trucks, truck equipment, or truck facilities may 
     have on the trucking industry and its employees, including 
     independent owner-operators;
       (4) an assessment of ongoing research by public and private 
     entities and the need for additional research on truck 
     security;
       (5) an assessment of industry best practices to enhance 
     security; and
       (6) an assessment of the current status of secure truck 
     parking.
       (c) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.

     SEC. 1541. MEMORANDUM OF UNDERSTANDING ANNEX.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Transportation and the Secretary shall 
     execute and develop an annex to the Memorandum of 
     Understanding between the two departments signed on September 
     28, 2004, governing the specific roles, delineations of 
     responsibilities, resources, and commitments of the 
     Department of Transportation and the Department of Homeland 
     Security, respectively, in addressing motor carrier 
     transportation security matters, including over-the-road bus 
     security matters, and shall cover the processes the 
     Departments will follow to promote communications, 
     efficiency, and nonduplication of effort.

     SEC. 1542. DHS INSPECTOR GENERAL REPORT ON TRUCKING SECURITY 
                   GRANT PROGRAM.

       (a) Initial Report.--Not later than 90 days after the date 
     of enactment of this Act, the Inspector General of the 
     Department of Homeland Security shall submit a report to the 
     appropriate congressional committees on the Federal trucking 
     industry security grant program, for fiscal years 2004 and 
     2005 that--
       (1) addresses the grant announcement, application, receipt, 
     review, award, monitoring, and closeout processes; and
       (2) states the amount obligated or expended under the 
     program for fiscal years 2004 and 2005 for--
       (A) infrastructure protection;
       (B) training;
       (C) equipment;
       (D) educational materials;
       (E) program administration;
       (F) marketing; and
       (G) other functions.
       (b) Subsequent Report.--Not later than 1 year after the 
     date of enactment of this Act, the Inspector General of the 
     Department of Homeland Security shall submit a report to the 
     appropriate congressional committees that--
       (1) analyzes the performance, efficiency, and effectiveness 
     of the Federal trucking industry security grant program, and 
     the need for the program using all years of available data; 
     and
       (2) makes recommendations regarding the future of the 
     program, including options to improve the effectiveness and 
     utility of the program and motor carrier security.

          Subtitle D--Hazardous Material and Pipeline Security

     SEC. 1551. RAILROAD ROUTING OF SECURITY-SENSITIVE MATERIALS.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this Act, the Secretary of Transportation, in 
     consultation with the Secretary, shall publish a final rule 
     based on the Pipeline and Hazardous Materials Safety 
     Administration's Notice of Proposed Rulemaking published on 
     December 21, 2006, entitled ``Hazardous Materials: Enhancing 
     Railroad Transportation Safety and Security for Hazardous 
     Materials Shipments''. The final rule shall incorporate the 
     requirements of this section and, as appropriate, public 
     comments received during the comment period of the 
     rulemaking.
       (b) Security-Sensitive Materials Commodity Data.--The 
     Secretary of Transportation shall ensure that the final rule 
     requires each railroad carrier transporting security-
     sensitive materials in commerce to, no later than 90 days 
     after the end of each calendar year, compile security-
     sensitive materials commodity data. Such data must be 
     collected by route, line segment, or series of line segments, 
     as aggregated by the railroad carrier. Within the railroad 
     carrier selected route, the commodity data must identify the 
     geographic location of the route and the total number of 
     shipments by the United Nations identification number for the 
     security-sensitive materials.
       (c) Railroad Transportation Route Analysis for Security-
     Sensitive Materials.--The Secretary of Transportation shall 
     ensure that the final rule requires each railroad carrier 
     transporting security-sensitive materials in commerce to, for 
     each calendar year, provide a written analysis of the safety 
     and security risks for the transportation routes identified 
     in the security-sensitive materials commodity data collected 
     as required by subsection (b). The safety and security risks 
     present shall be analyzed for the route, railroad facilities, 
     railroad storage facilities, and high-consequence targets 
     along or in proximity to the route.
       (d) Alternative Route Analysis for Security-Sensitive 
     Materials.--The Secretary of Transportation shall ensure that 
     the final rule requires each railroad carrier transporting 
     security-sensitive materials in commerce to--
       (1) for each calendar year--
       (A) identify practicable alternative routes over which the 
     railroad carrier has authority to operate as compared to the 
     current route for such a shipment analyzed under subsection 
     (c); and
       (B) perform a safety and security risk assessment of the 
     alternative route for comparison to the route analysis 
     specified in subsection (c);
       (2) ensure that the analysis under paragraph (1) includes--
       (A) identification of safety and security risks for an 
     alternative route;
       (B) comparison of those risks identified under subparagraph 
     (A) to the primary railroad transportation route, including 
     the risk of a catastrophic release from a shipment traveling 
     along the alternate route compared to the primary route;
       (C) any remediation or mitigation measures implemented on 
     the primary or alternative route; and
       (D) potential economic effects of using an alternative 
     route; and
       (3) consider when determining the practicable alternative 
     routes under paragraph (1)(A) the use of interchange 
     agreements with other railroad carriers.
       (e) Alternative Route Selection for Security-Sensitive 
     Materials.--The Secretary of Transportation shall ensure that 
     the final rule requires each railroad carrier transporting 
     security-sensitive materials in commerce to use the analysis 
     required by subsections (c) and (d) to select the safest and 
     most secure route to be used in transporting security-
     sensitive materials.
       (f) Review.--The Secretary of Transportation shall ensure 
     that the final rule requires each railroad carrier 
     transporting security-sensitive materials in commerce to 
     annually review and select the practicable route posing the 
     least overall safety and security risk in accordance with 
     this section. The railroad carrier must retain in writing all 
     route review and selection decision documentation and 
     restrict the distribution, disclosure, and availability of 
     information contained in the route analysis to appropriate 
     persons. This documentation should include, but is not 
     limited to, comparative analyses, charts, graphics, or 
     railroad system maps.
       (g) Retrospective Analysis.--The Secretary of 
     Transportation shall ensure that the final rule requires each 
     railroad carrier transporting security-sensitive materials in 
     commerce to, not less than once every 3 years, analyze the 
     route selection determinations required under this section. 
     Such an analysis shall include a comprehensive, systemwide 
     review of all operational

[[Page 20699]]

     changes, infrastructure modifications, traffic adjustments, 
     changes in the nature of high-consequence targets located 
     along or in proximity to the route, or other changes 
     affecting the safety and security of the movements of 
     security-sensitive materials that were implemented since the 
     previous analysis was completed.
       (h) Consultation.--In carrying out subsection (c), railroad 
     carriers transporting security-sensitive materials in 
     commerce shall seek relevant information from State, local, 
     and tribal officials, as appropriate, regarding security 
     risks to high-consequence targets along or in proximity to a 
     route used by a railroad carrier to transport security-
     sensitive materials.
       (i) Definitions.--In this section:
       (1) The term ``route'' includes storage facilities and 
     trackage used by railroad cars in transportation in commerce.
       (2) The term ``high-consequence target'' means a property, 
     natural resource, location, area, or other target designated 
     by the Secretary that is a viable terrorist target of 
     national significance, which may include a facility or 
     specific critical infrastructure, the attack of which by 
     railroad could result in--
       (A) catastrophic loss of life;
       (B) significant damage to national security or defense 
     capabilities; or
       (C) national economic harm.

     SEC. 1552. RAILROAD SECURITY-SENSITIVE MATERIAL TRACKING.

       (a) Communications.--
       (1) In general.--In conjunction with the research and 
     development program established under section 1518 and 
     consistent with the results of research relating to wireless 
     and other tracking technologies, the Secretary, in 
     consultation with the Administrator of the Transportation 
     Security Administration, shall develop a program that will 
     encourage the equipping of railroad cars transporting 
     security-sensitive materials, as defined in section 1501, 
     with technology that provides--
       (A) car position location and tracking capabilities; and
       (B) notification of railroad car depressurization, breach, 
     unsafe temperature, or release of hazardous materials, as 
     appropriate.
       (2) Coordination.--In developing the program required by 
     paragraph (1), the Secretary shall--
       (A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for railroad car tracking at the Department of 
     Transportation; and
       (B) ensure that the program is consistent with 
     recommendations and findings of the Department of Homeland 
     Security's hazardous material railroad tank car tracking 
     pilot programs.
       (b) Funding.--From the amounts appropriated pursuant to 
     114(w) of title 49, United States Code, as amended by section 
     1503 of this title, there shall be made available to the 
     Secretary to carry out this section--
       (1) $3,000,000 for fiscal year 2008;
       (2) $3,000,000 for fiscal year 2009; and
       (3) $3,000,000 for fiscal year 2010.

     SEC. 1553. HAZARDOUS MATERIALS HIGHWAY ROUTING.

       (a) Route Plan Guidance.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in consultation with the Secretary, shall--
       (1) document existing and proposed routes for the 
     transportation of radioactive and nonradioactive hazardous 
     materials by motor carrier, and develop a framework for using 
     a geographic information system-based approach to 
     characterize routes in the national hazardous materials route 
     registry;
       (2) assess and characterize existing and proposed routes 
     for the transportation of radioactive and nonradioactive 
     hazardous materials by motor carrier for the purpose of 
     identifying measurable criteria for selecting routes based on 
     safety and security concerns;
       (3) analyze current route-related hazardous materials 
     regulations in the United States, Canada, and Mexico to 
     identify cross-border differences and conflicting 
     regulations;
       (4) document the safety and security concerns of the 
     public, motor carriers, and State, local, territorial, and 
     tribal governments about the highway routing of hazardous 
     materials;
       (5) prepare guidance materials for State officials to 
     assist them in identifying and reducing both safety concerns 
     and security risks when designating highway routes for 
     hazardous materials consistent with the 13 safety-based 
     nonradioactive materials routing criteria and radioactive 
     materials routing criteria in subpart C part 397 of title 49, 
     Code of Federal Regulations;
       (6) develop a tool that will enable State officials to 
     examine potential routes for the highway transportation of 
     hazardous materials, assess specific security risks 
     associated with each route, and explore alternative 
     mitigation measures; and
       (7) transmit to the appropriate congressional committees a 
     report on the actions taken to fulfill paragraphs (1) through 
     (6) and any recommended changes to the routing requirements 
     for the highway transportation of hazardous materials in part 
     397 of title 49, Code of Federal Regulations.
       (b) Route Plans.--
       (1) Assessment.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     complete an assessment of the safety and national security 
     benefits achieved under existing requirements for route 
     plans, in written or electronic format, for explosives and 
     radioactive materials. The assessment shall, at a minimum--
       (A) compare the percentage of Department of Transportation 
     recordable incidents and the severity of such incidents for 
     shipments of explosives and radioactive materials for which 
     such route plans are required with the percentage of 
     recordable incidents and the severity of such incidents for 
     shipments of explosives and radioactive materials not subject 
     to such route plans; and
       (B) quantify the security and safety benefits, feasibility, 
     and costs of requiring each motor carrier that is required to 
     have a hazardous material safety permit under part 385 of 
     title 49, Code of Federal Regulations, to maintain, follow, 
     and carry such a route plan that meets the requirements of 
     section 397.101 of that title when transporting the type and 
     quantity of hazardous materials described in section 385.403, 
     taking into account the various segments of the motor carrier 
     industry, including tank truck, truckload and less than 
     truckload carriers.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     submit a report to the appropriate congressional committees 
     containing the findings and conclusions of the assessment.
       (c) Requirement.--The Secretary shall require motor 
     carriers that have a hazardous material safety permit under 
     part 385 of title 49, Code of Federal Regulations, to 
     maintain, follow, and carry a route plan, in written or 
     electronic format, that meets the requirements of section 
     397.101 of that title when transporting the type and quantity 
     of hazardous materials described in section 385.403 if the 
     Secretary determines, under the assessment required in 
     subsection (b), that such a requirement would enhance 
     security and safety without imposing unreasonable costs or 
     burdens upon motor carriers.

     SEC. 1554. MOTOR CARRIER SECURITY-SENSITIVE MATERIAL 
                   TRACKING.

       (a) Communications.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, consistent with the findings of the 
     Transportation Security Administration's hazardous materials 
     truck security pilot program, the Secretary, through the 
     Administrator of the Transportation Security Administration 
     and in consultation with the Secretary of Transportation, 
     shall develop a program to facilitate the tracking of motor 
     carrier shipments of security-sensitive materials and to 
     equip vehicles used in such shipments with technology that 
     provides--
       (A) frequent or continuous communications;
       (B) vehicle position location and tracking capabilities; 
     and
       (C) a feature that allows a driver of such vehicles to 
     broadcast an emergency distress signal.
       (2) Considerations.--In developing the program required by 
     paragraph (1), the Secretary shall--
       (A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for motor carrier or security-sensitive materials tracking at 
     the Department of Transportation;
       (B) take into consideration the recommendations and 
     findings of the report on the hazardous material safety and 
     security operational field test released by the Federal Motor 
     Carrier Safety Administration on November 11, 2004; and
       (C) evaluate--
       (i) any new information related to the costs and benefits 
     of deploying, equipping, and utilizing tracking technology, 
     including portable tracking technology, for motor carriers 
     transporting security-sensitive materials not included in the 
     hazardous material safety and security operational field test 
     report released by the Federal Motor Carrier Safety 
     Administration on November 11, 2004;
       (ii) the ability of tracking technology to resist tampering 
     and disabling;
       (iii) the capability of tracking technology to collect, 
     display, and store information regarding the movement of 
     shipments of security-sensitive materials by commercial motor 
     vehicles;
       (iv) the appropriate range of contact intervals between the 
     tracking technology and a commercial motor vehicle 
     transporting security-sensitive materials;
       (v) technology that allows the installation by a motor 
     carrier of concealed electronic devices on commercial motor 
     vehicles that can be activated by law enforcement authorities 
     to disable the vehicle or alert emergency response resources 
     to locate and recover security-sensitive materials in the 
     event of loss or theft of such materials;
       (vi) whether installation of the technology described in 
     clause (v) should be incorporated into the program under 
     paragraph (1);
       (vii) the costs, benefits, and practicality of such 
     technology described in clause (v) in the context of the 
     overall benefit to national security, including commerce in 
     transportation; and
       (viii) other systems and information the Secretary 
     determines appropriate.
       (b) Funding.--From the amounts appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503 of this Act, there shall be made available to 
     the Secretary to carry out this section--
       (1) $7,000,000 for fiscal year 2008 of which $3,000,000 may 
     be used for equipment;
       (2) $7,000,000 for fiscal year 2009 of which $3,000,000 may 
     be used for equipment; and
       (3) $7,000,000 for fiscal year 2010 of which $3,000,000 may 
     be used for equipment.
       (c) Report.--Not later than 1 year after the issuance of 
     regulations under subsection (a), the Secretary shall issue a 
     report to the appropriate congressional committees on the 
     program developed and evaluation carried out under this 
     section.

[[Page 20700]]

       (d) Limitation.--The Secretary may not mandate the 
     installation or utilization of a technology described under 
     this section without additional congressional authority 
     provided after the date of enactment of this Act.

     SEC. 1555. HAZARDOUS MATERIALS SECURITY INSPECTIONS AND 
                   STUDY.

       (a) In General.--The Secretary of Transportation shall 
     consult with the Secretary to limit, to the extent 
     practicable, duplicative reviews of the hazardous materials 
     security plans required under part 172, title 49, Code of 
     Federal Regulations.
       (b) Transportation Costs Study.--Within 1 year after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in conjunction with the Secretary, shall 
     study to what extent the insurance, security, and safety 
     costs borne by railroad carriers, motor carriers, pipeline 
     carriers, air carriers, and maritime carriers associated with 
     the transportation of hazardous materials are reflected in 
     the rates paid by offerors of such commodities as compared to 
     the costs and rates, respectively, for the transportation of 
     nonhazardous materials.

     SEC. 1556. TECHNICAL CORRECTIONS.

       (a) Correction.--Section 5103a of title 49, United States 
     Code, is amended--
       (1) in subsection (a)(1) by striking ``Secretary'' and 
     inserting ``Secretary of Homeland Security'';
       (2) in subsection (b) by striking ``Secretary'' each place 
     it appears and inserting ``Secretary of Transportation'';
       (3) in subsection (d)(1)(B) by striking ``Secretary'' and 
     inserting ``Secretary of Homeland Security''; and
       (4) in subsection (e) by striking ``Secretary'' and 
     inserting ``Secretary of Homeland Security'' each place it 
     appears.
       (b) Relationship to Transportation Security Cards.--
       (1) Background check.--An individual who has a valid 
     transportation employee identification card issued by the 
     Secretary under section 70105 of title 46, United States 
     Code, shall be deemed to have met the background records 
     check required under section 5103a of title 49, United States 
     Code.
       (2) State review.--Nothing in this subsection prevents or 
     preempts a State from conducting a criminal records check of 
     an individual that has applied for a license to operate a 
     motor vehicle transporting in commerce a hazardous material.

     SEC. 1557. PIPELINE SECURITY INSPECTIONS AND ENFORCEMENT.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this Act, consistent with the Annex to the 
     Memorandum of Understanding executed on August 9, 2006, 
     between the Department of Transportation and the Department, 
     the Secretary, in consultation with the Secretary of 
     Transportation, shall establish a program for reviewing 
     pipeline operator adoption of recommendations of the 
     September 5, 2002, Department of Transportation Research and 
     Special Programs Administration's Pipeline Security 
     Information Circular, including the review of pipeline 
     security plans and critical facility inspections.
       (b) Review and Inspection.--Not later than 12 months after 
     the date of enactment of this Act, the Secretary and the 
     Secretary of Transportation shall develop and implement a 
     plan for reviewing the pipeline security plans and an 
     inspection of the critical facilities of the 100 most 
     critical pipeline operators covered by the September 5, 2002, 
     circular, where such facilities have not been inspected for 
     security purposes since September 5, 2002, by either the 
     Department or the Department of Transportation.
       (c) Compliance Review Methodology.--In reviewing pipeline 
     operator compliance under subsections (a) and (b), risk 
     assessment methodologies shall be used to prioritize risks 
     and to target inspection and enforcement actions to the 
     highest risk pipeline assets.
       (d) Regulations.--Not later than 18 months after the date 
     of enactment of this Act, the Secretary and the Secretary of 
     Transportation shall develop and transmit to pipeline 
     operators security recommendations for natural gas and 
     hazardous liquid pipelines and pipeline facilities. If the 
     Secretary determines that regulations are appropriate, the 
     Secretary shall consult with the Secretary of Transportation 
     on the extent of risk and appropriate mitigation measures, 
     and the Secretary or the Secretary of Transportation, 
     consistent with the Annex to the Memorandum of Understanding 
     executed on August 9, 2006, shall promulgate such regulations 
     and carry out necessary inspection and enforcement actions. 
     Any regulations shall incorporate the guidance provided to 
     pipeline operators by the September 5, 2002, Department of 
     Transportation Research and Special Programs Administration's 
     Pipeline Security Information Circular and contain additional 
     requirements as necessary based upon the results of the 
     inspections performed under subsection (b). The regulations 
     shall include the imposition of civil penalties for 
     noncompliance.
       (e) Funding.--From the amounts appropriated pursuant to 
     section 114(w) of title 49, United States Code, as amended by 
     section 1503 of this Act, there shall be made available to 
     the Secretary to carry out this section--
       (1) $2,000,000 for fiscal year 2008;
       (2) $2,000,000 for fiscal year 2009; and
       (3) $2,000,000 for fiscal year 2010.

     SEC. 1558. PIPELINE SECURITY AND INCIDENT RECOVERY PLAN.

       (a) In General.--The Secretary, in consultation with the 
     Secretary of Transportation and the Administrator of the 
     Pipeline and Hazardous Materials Safety Administration, and 
     in accordance with the Annex to the Memorandum of 
     Understanding executed on August 9, 2006, the National 
     Strategy for Transportation Security, and Homeland Security 
     Presidential Directive 7, shall develop a pipeline security 
     and incident recovery protocols plan. The plan shall 
     include--
       (1) for the Government to provide increased security 
     support to the most critical interstate and intrastate 
     natural gas and hazardous liquid transmission pipeline 
     infrastructure and operations as determined under section 
     1557 when--
       (A) under severe security threat levels of alert; or
       (B) under specific security threat information relating to 
     such pipeline infrastructure or operations exists; and
       (2) an incident recovery protocol plan, developed in 
     conjunction with interstate and intrastate transmission and 
     distribution pipeline operators and terminals and facilities 
     operators connected to pipelines, to develop protocols to 
     ensure the continued transportation of natural gas and 
     hazardous liquids to essential markets and for essential 
     public health or national defense uses in the event of an 
     incident affecting the interstate and intrastate natural gas 
     and hazardous liquid transmission and distribution pipeline 
     system, which shall include protocols for restoring essential 
     services supporting pipelines and granting access to pipeline 
     operators for pipeline infrastructure repair, replacement, or 
     bypass following an incident.
       (b) Existing Private and Public Sector Efforts.--The plan 
     shall take into account actions taken or planned by both 
     private and public entities to address identified pipeline 
     security issues and assess the effective integration of such 
     actions.
       (c) Consultation.--In developing the plan under subsection 
     (a), the Secretary shall consult with the Secretary of 
     Transportation, interstate and intrastate transmission and 
     distribution pipeline operators, nonprofit employee 
     organizations representing pipeline employees, emergency 
     responders, offerors, State pipeline safety agencies, public 
     safety officials, and other relevant parties.
       (d) Report.--
       (1) Contents.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     appropriate congressional committees a report containing the 
     plan required by subsection (a), including an estimate of the 
     private and public sector costs to implement any 
     recommendations.
       (2) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.

                          TITLE XVI--AVIATION

     SEC. 1601. AIRPORT CHECKPOINT SCREENING FUND.

       Section 44940 of title 49, United States Code, is amended--
       (1) in subsection (d)(4) by inserting ``, other than 
     subsection (i),'' before ``except to''; and
       (2) by adding at the end the following:
       ``(i) Checkpoint Screening Security Fund.--
       ``(1) Establishment.--There is established in the 
     Department of Homeland Security a fund to be known as the 
     `Checkpoint Screening Security Fund'.
       ``(2) Deposits.--In fiscal year 2008, after amounts are 
     made available under section 44923(h), the next $250,000,000 
     derived from fees received under subsection (a)(1) shall be 
     available to be deposited in the Fund.
       ``(3) Fees.--The Secretary of Homeland Security shall 
     impose the fee authorized by subsection (a)(1) so as to 
     collect at least $250,000,000 in fiscal year 2008 for deposit 
     into the Fund.
       ``(4) Availability of amounts.--Amounts in the Fund shall 
     be available until expended by the Administrator of the 
     Transportation Security Administration for the purchase, 
     deployment, installation, research, and development of 
     equipment to improve the ability of security screening 
     personnel at screening checkpoints to detect explosives.''.

     SEC. 1602. SCREENING OF CARGO CARRIED ABOARD PASSENGER 
                   AIRCRAFT.

       (a) In General.--Section 44901 of title 49, United States 
     Code, is amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following:
       ``(g) Air Cargo on Passenger Aircraft.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Secretary of Homeland Security 
     shall establish a system to screen 100 percent of cargo 
     transported on passenger aircraft operated by an air carrier 
     or foreign air carrier in air transportation or intrastate 
     air transportation to ensure the security of all such 
     passenger aircraft carrying cargo.
       ``(2) Minimum standards.--The system referred to in 
     paragraph (1) shall require, at a minimum, that equipment, 
     technology, procedures, personnel, or other methods approved 
     by the Administrator of the Transportation Security 
     Administration, are used to screen cargo carried on passenger 
     aircraft described in paragraph (1) to provide a level of 
     security commensurate with the level of security for the 
     screening of passenger checked baggage as follows:
       ``(A) 50 percent of such cargo is so screened not later 
     than 18 months after the date of enactment of the 
     Implementing Recommendations of the 9/11 Commission Act of 
     2007.
       ``(B) 100 percent of such cargo is so screened not later 
     than 3 years after such date of enactment.

[[Page 20701]]

       ``(3) Regulations.--
       ``(A) Interim final rule.--The Secretary of Homeland 
     Security may issue an interim final rule as a temporary 
     regulation to implement this subsection without regard to the 
     provisions of chapter 5 of title 5.
       ``(B) Final rule.--
       ``(i) In general.--If the Secretary issues an interim final 
     rule under subparagraph (A), the Secretary shall issue, not 
     later than one year after the effective date of the interim 
     final rule, a final rule as a permanent regulation to 
     implement this subsection in accordance with the provisions 
     of chapter 5 of title 5.
       ``(ii) Failure to act.--If the Secretary does not issue a 
     final rule in accordance with clause (i) on or before the 
     last day of the one-year period referred to in clause (i), 
     the Secretary shall submit to the Committee on Homeland 
     Security of the House of Representatives, Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate a report explaining why the final rule was not 
     timely issued and providing an estimate of the earliest date 
     on which the final rule will be issued. The Secretary shall 
     submit the first such report within 10 days after such last 
     day and submit a report to the Committees containing updated 
     information every 30 days thereafter until the final rule is 
     issued.
       ``(iii) Superceding of interim final rule.--The final rule 
     issued in accordance with this subparagraph shall supersede 
     the interim final rule issued under subparagraph (A).
       ``(4) Report.--Not later than 1 year after the date of 
     establishment of the system under paragraph (1), the 
     Secretary shall submit to the Committees referred to in 
     paragraph (3)(B)(ii) a report that describes the system.
       ``(5) Screening defined.--In this subsection the term 
     `screening' means a physical examination or non-intrusive 
     methods of assessing whether cargo poses a threat to 
     transportation security. Methods of screening include x-ray 
     systems, explosives detection systems, explosives trace 
     detection, explosives detection canine teams certified by the 
     Transportation Security Administration, or a physical search 
     together with manifest verification. The Administrator may 
     approve additional methods to ensure that the cargo does not 
     pose a threat to transportation security and to assist in 
     meeting the requirements of this subsection. Such additional 
     cargo screening methods shall not include solely performing a 
     review of information about the contents of cargo or 
     verifying the identity of a shipper of the cargo that is not 
     performed in conjunction with other security methods 
     authorized under this subsection, including whether a known 
     shipper is registered in the known shipper database. Such 
     additional cargo screening methods may include a program to 
     certify the security methods used by shippers pursuant to 
     paragraphs (1) and (2) and alternative screening methods 
     pursuant to exemptions referred to in subsection (b) of 
     section 1602 of the Implementing Recommendations of the 9/11 
     Commission Act of 2007.''.
       (b) Assessment of Exemptions.--
       (1) TSA assessment.--
       (A) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the appropriate committees of Congress and to 
     the Comptroller General a report containing an assessment of 
     each exemption granted under section 44901(i)(1) of title 49, 
     United States Code, for the screening required by such 
     section for cargo transported on passenger aircraft and an 
     analysis to assess the risk of maintaining such exemption.
       (B) Contents.--The report under subparagraph (A) shall 
     include--
       (i) the rationale for each exemption;
       (ii) what percentage of cargo is not screened in accordance 
     with section 44901(g) of title 49, United States Code;
       (iii) the impact of each exemption on aviation security;
       (iv) the projected impact on the flow of commerce of 
     eliminating each exemption, respectively, should the 
     Secretary choose to take such action; and
       (v) plans and rationale for maintaining, changing, or 
     eliminating each exemption.
       (C) Format.--The Secretary may submit the report under 
     subparagraph (A) in both classified and redacted formats if 
     the Secretary determines that such action is appropriate or 
     necessary.
       (2) GAO assessment.--Not later than 120 days after the date 
     on which the report under paragraph (1) is submitted, the 
     Comptroller General shall review the report and submit to the 
     Committee on Homeland Security of the House of 
     Representatives, the Committee on Commerce, Science, and 
     Transportation of the Senate, and the Committee on Homeland 
     Security and Governmental Affairs of the Senate an assessment 
     of the methodology of determinations made by the Secretary 
     for maintaining, changing, or eliminating an exemption under 
     section 44901(i)(1) of title 49, United States Code.

     SEC. 1603. IN-LINE BAGGAGE SCREENING.

       (a) Extension of Authorization.--Section 44923(i)(1) of 
     title 49, United States Code, is amended by striking 
     ``2007.'' and inserting ``2007, and $450,000,000 for each of 
     fiscal years 2008 through 2011''.
       (b) Submission of Cost-Sharing Study and Plan.--Not later 
     than 60 days after the date of enactment of this Act, the 
     Secretary for Homeland Security shall submit to the 
     appropriate congressional committees the cost sharing study 
     described in section 4019(d) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (118 Stat. 3722), together 
     with the Secretary's analysis of the study, a list of 
     provisions of the study the Secretary intends to implement, 
     and a plan and schedule for implementation of such listed 
     provisions.

     SEC. 1604. IN-LINE BAGGAGE SYSTEM DEPLOYMENT.

       (a) In General.--Section 44923 of title 49, United States 
     Code, is amended--
       (1) in subsection (a) by striking ``may make'' and 
     inserting ``shall make'';
       (2) in subsection (d)(1) by striking ``may'' and inserting 
     ``shall'';
       (3) in subsection (h)(1) by striking ``2007'' and inserting 
     ``2028'';
       (4) in subsection (h) by striking paragraphs (2) and (3) 
     and inserting the following:
       ``(2) Allocation.--Of the amount made available under 
     paragraph (1) for a fiscal year, not less than $200,000,000 
     shall be allocated to fulfill letters of intent issued under 
     subsection (d).
       ``(3) Discretionary grants.--Of the amount made available 
     under paragraph (1) for a fiscal year, up to $50,000,000 
     shall be used to make discretionary grants, including other 
     transaction agreements for airport security improvement 
     projects, with priority given to small hub airports and 
     nonhub airports.'';
       (5) by redesignating subsection (i) as subsection (j); and
       (6) by inserting after subsection (h) the following:
       ``(i) Leveraged Funding.--For purposes of this section, a 
     grant under subsection (a) to an airport sponsor to service 
     an obligation issued by or on behalf of that sponsor to fund 
     a project described in subsection (a) shall be considered to 
     be a grant for that project.''.
       (b) Prioritization of Projects.--
       (1) In general.--The Administrator of the Transportation 
     Security Administration shall establish a prioritization 
     schedule for airport security improvement projects described 
     in section 44923 of title 49, United States Code, based on 
     risk and other relevant factors, to be funded under that 
     section. The schedule shall include both hub airports 
     referred to in paragraphs (29), (31), and (42) of section 
     40102 of such title and nonhub airports (as defined in 
     section 47102(13) of such title).
       (2) Airports that have incurred eligible costs.--The 
     schedule shall include airports that have incurred eligible 
     costs associated with development of partial or completed in-
     line baggage systems before the date of enactment of this Act 
     in reasonable anticipation of receiving a grant under section 
     44923 of title 49, United States Code, in reimbursement of 
     those costs but that have not received such a grant.
       (3) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall provide a copy 
     of the prioritization schedule, a corresponding timeline, and 
     a description of the funding allocation under section 44923 
     of title 49, United States Code, to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Homeland Security of the House of 
     Representatives.

     SEC. 1605. STRATEGIC PLAN TO TEST AND IMPLEMENT ADVANCED 
                   PASSENGER PRESCREENING SYSTEM.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Homeland Security, in 
     consultation with the Administrator of the Transportation 
     Security Administration, shall submit to the Committee on 
     Homeland Security of the House of Representatives, the 
     Committee on Commerce, Science, and Transportation of the 
     Senate, and the Committee on Homeland Security and 
     Governmental Affairs of the Senate a plan that--
       (1) describes the system to be utilized by the Department 
     of Homeland Security to assume the performance of comparing 
     passenger information, as defined by the Administrator, to 
     the automatic selectee and no-fly lists, utilizing 
     appropriate records in the consolidated and integrated 
     terrorist watchlist maintained by the Federal Government;
       (2) provides a projected timeline for each phase of testing 
     and implementation of the system;
       (3) explains how the system will be integrated with the 
     prescreening system for passengers on international flights; 
     and
       (4) describes how the system complies with section 552a of 
     title 5, United States Code.
       (b) GAO Assessment.--Not later than 180 days after the date 
     of enactment of this Act, the Comptroller General shall 
     submit a report to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Homeland 
     Security of the House of Representatives that--
       (1) describes the progress made by the Transportation 
     Security Administration in implementing the secure flight 
     passenger pre-screening program;
       (2) describes the effectiveness of the current appeals 
     process for passengers wrongly assigned to the no-fly and 
     terrorist watch lists;
       (3) describes the Transportation Security Administration's 
     plan to protect private passenger information and progress 
     made in integrating the system with the pre-screening program 
     for international flights operated by United States Customs 
     and Border Protection;
       (4) provides a realistic determination of when the system 
     will be completed; and
       (5) includes any other relevant observations or 
     recommendations the Comptroller General deems appropriate.

[[Page 20702]]



     SEC. 1606. APPEAL AND REDRESS PROCESS FOR PASSENGERS WRONGLY 
                   DELAYED OR PROHIBITED FROM BOARDING A FLIGHT.

       (a) In General.--Subchapter I of chapter 449 of title 49, 
     United States Code is amended by adding at the end the 
     following:

     ``Sec. 44926. Appeal and redress process for passengers 
       wrongly delayed or prohibited from boarding a flight

       ``(a) In General.--The Secretary of Homeland Security shall 
     establish a timely and fair process for individuals who 
     believe they have been delayed or prohibited from boarding a 
     commercial aircraft because they were wrongly identified as a 
     threat under the regimes utilized by the Transportation 
     Security Administration, United States Customs and Border 
     Protection, or any other office or component of the 
     Department of Homeland Security.
       ``(b) Office of Appeals and Redress.--
       ``(1) Establishment.--The Secretary shall establish in the 
     Department an Office of Appeals and Redress to implement, 
     coordinate, and execute the process established by the 
     Secretary pursuant to subsection (a). The Office shall 
     include representatives from the Transportation Security 
     Administration, United States Customs and Border Protection, 
     and such other offices and components of the Department as 
     the Secretary determines appropriate.
       ``(2) Records.--The process established by the Secretary 
     pursuant to subsection (a) shall include the establishment of 
     a method by which the Office, under the direction of the 
     Secretary, will be able to maintain a record of air carrier 
     passengers and other individuals who have been misidentified 
     and have corrected erroneous information.
       ``(3) Information.--To prevent repeated delays of an 
     misidentified passenger or other individual, the Office 
     shall--
       ``(A) ensure that the records maintained under this 
     subsection contain information determined by the Secretary to 
     authenticate the identity of such a passenger or individual;
       ``(B) furnish to the Transportation Security 
     Administration, United States Customs and Border Protection, 
     or any other appropriate office or component of the 
     Department, upon request, such information as may be 
     necessary to allow such office or component to assist air 
     carriers in improving their administration of the advanced 
     passenger prescreening system and reduce the number of false 
     positives; and
       ``(C) require air carriers and foreign air carriers take 
     action to identify passengers determined, under the process 
     established under subsection (a), to have been wrongly 
     identified.
       ``(4) Handling of personally identifiable information.--The 
     Secretary, in conjunction with the Chief Privacy Officer of 
     the Department shall--
       ``(A) require that Federal employees of the Department 
     handling personally identifiable information of passengers 
     (in this paragraph referred to as `PII') complete mandatory 
     privacy and security training prior to being authorized to 
     handle PII;
       ``(B) ensure that the records maintained under this 
     subsection are secured by encryption, one-way hashing, other 
     data anonymization techniques, or such other equivalent 
     security technical protections as the Secretary determines 
     necessary;
       ``(C) limit the information collected from misidentified 
     passengers or other individuals to the minimum amount 
     necessary to resolve a redress request;
       ``(D) require that the data generated under this subsection 
     shall be shared or transferred via a secure data network, 
     that has been audited to ensure that the anti-hacking and 
     other security related software functions properly and is 
     updated as necessary;
       ``(E) ensure that any employee of the Department receiving 
     the data contained within the records handles the information 
     in accordance with the section 552a of title 5, United States 
     Code, and the Federal Information Security Management Act of 
     2002 (Public Law 107-296);
       ``(F) only retain the data for as long as needed to assist 
     the individual traveler in the redress process; and
       ``(G) conduct and publish a privacy impact assessment of 
     the process described within this subsection and transmit the 
     assessment to the Committee on Homeland Security of the House 
     of Representatives, the Committee on Commerce, Science, and 
     Transportation of the Senate, and Committee on Homeland 
     Security and Governmental Affairs of the Senate.
       ``(5) Initiation of redress process at airports.--The 
     Office shall establish at each airport at which the 
     Department has a significant presence a process to provide 
     information to air carrier passengers to begin the redress 
     process established pursuant to subsection (a).''.
       (b) Clerical Amendment.--The analysis for such chapter is 
     amended by inserting after the item relating to section 44925 
     the following:

``44926. Appeal and redress process for passengers wrongly delayed or 
              prohibited from boarding a flight.''.

     SEC. 1607. STRENGTHENING EXPLOSIVES DETECTION AT PASSENGER 
                   SCREENING CHECKPOINTS.

       (a) In General.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary of Homeland Security, in 
     consultation with the Administrator of the Transportation 
     Security Administration, shall issue the strategic plan the 
     Secretary was required by section 44925(b) of title 49, 
     United States Code, to have issued within 90 days after the 
     date of enactment of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (Public Law 108-458).
       (b) Deployment.--Section 44925(b) of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(3) Implementation.--The Secretary shall begin 
     implementation of the strategic plan within one year after 
     the date of enactment of this paragraph.''.

     SEC. 1608. RESEARCH AND DEVELOPMENT OF AVIATION 
                   TRANSPORTATION SECURITY TECHNOLOGY.

       Section 137(a) of the Aviation and Transportation Security 
     Act (49 U.S.C. 44912 note; 115 Stat. 637) is amended--
       (1) by striking ``2002 through 2006'' and inserting ``2006 
     through 2011'';
       (2) by striking ``aviation'' and inserting 
     ``transportation''; and
       (3) by striking ``2002 and 2003'' and inserting ``2006 
     through 2011''.

     SEC. 1609. BLAST-RESISTANT CARGO CONTAINERS.

       Section 44901 of title 49, United States Code, as amended 
     by section 1602, is further amended by adding at the end the 
     following:
       ``(j) Blast-Resistant Cargo Containers.--
       ``(1) In general.--Before January 1, 2008, the 
     Administrator of the Transportation Security Administration 
     shall--
       ``(A) evaluate the results of the blast-resistant cargo 
     container pilot program that was initiated before the date of 
     enactment of this subsection; and
       ``(B) prepare and distribute through the Aviation Security 
     Advisory Committee to the appropriate Committees of Congress 
     and air carriers a report on that evaluation which may 
     contain nonclassified and classified sections.
       ``(2) Acquisition, maintenance, and replacement.--Upon 
     completion and consistent with the results of the evaluation 
     that paragraph (1)(A) requires, the Administrator shall--
       ``(A) develop and implement a program, as the Administrator 
     determines appropriate, to acquire, maintain, and replace 
     blast-resistant cargo containers;
       ``(B) pay for the program; and
       ``(C) make available blast-resistant cargo containers to 
     air carriers pursuant to paragraph (3).
       ``(3) Distribution to air carriers.--The Administrator 
     shall make available, beginning not later than July 1, 2008, 
     blast-resistant cargo containers to air carriers for use on a 
     risk managed basis as determined by the Administrator.''.

     SEC. 1610. PROTECTION OF PASSENGER PLANES FROM EXPLOSIVES.

       (a) Technology Research and Pilot Projects.--
       (1) Research and development.--The Secretary of Homeland 
     Security, in consultation with the Administrator of the 
     Transportation Security Administration, shall expedite 
     research and development programs for technologies that can 
     disrupt or prevent an explosive device from being introduced 
     onto a passenger plane or from damaging a passenger plane 
     while in flight or on the ground. The research shall be used 
     in support of implementation of section 44901 of title 49, 
     United States Code.
       (2) Pilot projects.--The Secretary, in conjunction with the 
     Secretary of Transportation, shall establish a grant program 
     to fund pilot projects--
       (A) to deploy technologies described in paragraph (1); and
       (B) to test technologies to expedite the recovery, 
     development, and analysis of information from aircraft 
     accidents to determine the cause of the accident, including 
     deployable flight deck and voice recorders and remote 
     location recording devices.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security for 
     fiscal year 2008 such sums as may be necessary to carry out 
     this section. Such sums shall remain available until 
     expended.

     SEC. 1611. SPECIALIZED TRAINING.

       The Administrator of the Transportation Security 
     Administration shall provide advanced training to 
     transportation security officers for the development of 
     specialized security skills, including behavior observation 
     and analysis, explosives detection, and document examination, 
     in order to enhance the effectiveness of layered 
     transportation security measures.

     SEC. 1612. CERTAIN TSA PERSONNEL LIMITATIONS NOT TO APPLY.

       (a) In General.--Notwithstanding any provision of law, any 
     statutory limitation on the number of employees in the 
     Transportation Security Administration, before or after its 
     transfer to the Department of Homeland Security from the 
     Department of Transportation, does not apply after fiscal 
     year 2007.
       (b) Aviation Security.--Notwithstanding any provision of 
     law imposing a limitation on the recruiting or hiring of 
     personnel into the Transportation Security Administration to 
     a maximum number of permanent positions, the Secretary of 
     Homeland Security shall recruit and hire such personnel into 
     the Administration as may be necessary--
       (1) to provide appropriate levels of aviation security; and
       (2) to accomplish that goal in such a manner that the 
     average aviation security-related delay experienced by 
     airline passengers is reduced to a level of less than 10 
     minutes.

     SEC. 1613. PILOT PROJECT TO TEST DIFFERENT TECHNOLOGIES AT 
                   AIRPORT EXIT LANES.

       (a) In General.--The Administrator of the Transportation 
     Security Administration shall conduct a pilot program at not 
     more than 2 airports to identify technologies to improve 
     security at airport exit lanes.

[[Page 20703]]

       (b) Program Components.--In conducting the pilot program 
     under this section, the Administrator shall--
       (1) utilize different technologies that protect the 
     integrity of the airport exit lanes from unauthorized entry;
       (2) work with airport officials to deploy such technologies 
     in multiple configurations at a selected airport or airports 
     at which some of the exits are not colocated with a screening 
     checkpoint; and
       (3) ensure the level of security is at or above the level 
     of existing security at the airport or airports where the 
     pilot program is conducted.
       (c) Reports.--
       (1) Initial briefing.--Not later than 180 days after the 
     date of enactment of this Act, the Administrator shall 
     conduct a briefing to the congressional committees set forth 
     in paragraph (3) that describes--
       (A) the airport or airports selected to participate in the 
     pilot program;
       (B) the technologies to be tested;
       (C) the potential savings from implementing the 
     technologies at selected airport exits;
       (D) the types of configurations expected to be deployed at 
     such airports; and
       (E) the expected financial contribution from each airport.
       (2) Final report.--Not later than 18 months after the 
     technologies are deployed at the airports participating in 
     the pilot program, the Administrator shall submit a final 
     report to the congressional committees set forth in paragraph 
     (3) that describes--
       (A) the changes in security procedures and technologies 
     deployed;
       (B) the estimated cost savings at the airport or airports 
     that participated in the pilot program; and
       (C) the efficacy and staffing benefits of the pilot program 
     and its applicability to other airports in the United States.
       (3) Congressional committees.--The reports required under 
     this subsection shall be submitted to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (B) the Committee on Appropriations of the Senate;
       (C) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (D) the Committee on Homeland Security of the House of 
     Representatives; and
       (E) the Committee on Appropriations of the House of 
     Representatives.
       (d) Use of Existing Funds.--This section shall be executed 
     using existing funds.

     SEC. 1614. SECURITY CREDENTIALS FOR AIRLINE CREWS.

       (a) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator of the 
     Transportation Security Administration, after consultation 
     with airline, airport, and flight crew representatives, shall 
     submit to the Committee on Commerce, Science, and 
     Transportation of the Senate, the Committee on Homeland 
     Security and Governmental Affairs of the Senate, the 
     Committee on Homeland Security of the House of 
     Representatives, and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report on 
     the status of the Administration's efforts to institute a 
     sterile area access system or method that will enhance 
     security by properly identifying authorized airline flight 
     deck and cabin crew members at screening checkpoints and 
     granting them expedited access through screening checkpoints. 
     The Administrator shall include in the report recommendations 
     on the feasibility of implementing the system for the 
     domestic aviation industry beginning one year after the date 
     on which the report is submitted.
       (b) Beginning Implementation.--The Administrator shall 
     begin implementation of the system or method referred to in 
     subsection (a) not later than one year after the date on 
     which the Administrator submits the report under subsection 
     (a).

     SEC. 1615. LAW ENFORCEMENT OFFICER BIOMETRIC CREDENTIAL.

       (a) In General.--Section 44903(h)(6) of title 49, United 
     States Code, is amended to read as follows:
       ``(6) Use of biometric technology for armed law enforcement 
     travel.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of the Implementing Recommendations of the 9/11 
     Commission Act of 2007, the Secretary of Homeland Security, 
     in consultation with the Attorney General, shall--
       ``(i) implement this section by publication in the Federal 
     Register; and
       ``(ii) establish a national registered armed law 
     enforcement program, that shall be federally managed, for law 
     enforcement officers needing to be armed when traveling by 
     commercial aircraft.
       ``(B) Program requirements.--The program shall--
       ``(i) establish a credential or a system that incorporates 
     biometric technology and other applicable technologies;
       ``(ii) establish a system for law enforcement officers who 
     need to be armed when traveling by commercial aircraft on a 
     regular basis and for those who need to be armed during 
     temporary travel assignments;
       ``(iii) comply with other uniform credentialing 
     initiatives, including the Homeland Security Presidential 
     Directive 12;
       ``(iv) apply to all Federal, State, local, tribal, and 
     territorial government law enforcement agencies; and
       ``(v) establish a process by which the travel credential or 
     system may be used to verify the identity, using biometric 
     technology, of a Federal, State, local, tribal, or 
     territorial law enforcement officer seeking to carry a weapon 
     on board a commercial aircraft, without unnecessarily 
     disclosing to the public that the individual is a law 
     enforcement officer.
       ``(C) Procedures.--In establishing the program, the 
     Secretary shall develop procedures--
       ``(i) to ensure that a law enforcement officer of a 
     Federal, State, local, tribal, or territorial government 
     flying armed has a specific reason for flying armed and the 
     reason is within the scope of the duties of such officer;
       ``(ii) to preserve the anonymity of the armed law 
     enforcement officer;
       ``(iii) to resolve failures to enroll, false matches, and 
     false nonmatches relating to the use of the law enforcement 
     travel credential or system;
       ``(iv) to determine the method of issuance of the biometric 
     credential to law enforcement officers needing to be armed 
     when traveling by commercial aircraft;
       ``(v) to invalidate any law enforcement travel credential 
     or system that is lost, stolen, or no longer authorized for 
     use;
       ``(vi) to coordinate the program with the Federal Air 
     Marshal Service, including the force multiplier program of 
     the Service; and
       ``(vii) to implement a phased approach to launching the 
     program, addressing the immediate needs of the relevant 
     Federal agent population before expanding to other law 
     enforcement populations.''.
       (b) Report.--
       (1) In general.--Not later than 180 days after implementing 
     the national registered armed law enforcement program 
     required by section 44903(h)(6) of title 49, United States 
     Code, the Secretary of Homeland Security shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Homeland Security of the House of 
     Representatives a report. If the Secretary has not 
     implemented the program within 180 days after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     the Committees within 180 days explaining the reasons for the 
     failure to implement the program within the time required by 
     that section and a further report within each successive 90-
     day period until the program is implemented explaining the 
     reasons for such further delays in implementation until the 
     program is functioning.
       (2) Classified format.--The Secretary may submit each 
     report required by this subsection in classified format.

     SEC. 1616. REPAIR STATION SECURITY.

       (a) Certification of Foreign Repair Stations Suspension.--
     If the regulations required by section 44924(f) of title 49, 
     United States Code, are not issued within one year after the 
     date of enactment of this Act, the Administrator of the 
     Federal Aviation Administration may not certify any foreign 
     repair station under part 145 of title 14, Code of Federal 
     Regulations, after such date unless the station was 
     previously certified, or is in the process of certification 
     by the Administration under that part.
       (b) 6-Month Deadline for Security Review and Audit.--
     Subsections (a) and (d) of section 44924 of title 49, United 
     States Code, is amended--
       (1) in each of subsections (a) and (b) by striking ``18 
     months'' and inserting ``6 months''; and
       (2) in subsection (d) by inserting ``(other than a station 
     that was previously certified, or is in the process of 
     certification, by the Administration under this part)'' 
     before ``until''.

     SEC. 1617. GENERAL AVIATION SECURITY.

        Section 44901 of title 49, United States Code, as amended 
     by sections 1602 and 1609, is further amended by adding at 
     the end the following:
       ``(k) General Aviation Airport Security Program.--
       ``(1) In general.--Not later than one year after the date 
     of enactment of this subsection, the Administrator of the 
     Transportation Security Administration shall--
       ``(A) develop a standardized threat and vulnerability 
     assessment program for general aviation airports (as defined 
     in section 47134(m)); and
       ``(B) implement a program to perform such assessments on a 
     risk-managed basis at general aviation airports.
       ``(2) Grant program.--Not later than 6 months after the 
     date of enactment of this subsection, the Administrator shall 
     initiate and complete a study of the feasibility of a 
     program, based on a risk-managed approach, to provide grants 
     to operators of general aviation airports (as defined in 
     section 47134(m)) for projects to upgrade security at such 
     airports. If the Administrator determines that such a program 
     is feasible, the Administrator shall establish such a 
     program.
       ``(3) Application to general aviation aircraft.--Not later 
     than 180 days after the date of enactment of this subsection, 
     the Administrator shall develop a risk-based system under 
     which--
       ``(A) general aviation aircraft, as identified by the 
     Administrator, in coordination with the Administrator of the 
     Federal Aviation Administration, are required to submit 
     passenger information and advance notification requirements 
     for United States Customs and Border Protection before 
     entering United States airspace; and
       ``(B) such information is checked against appropriate 
     databases.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to the Administrator of the 
     Transportation Security Administration such sums as may be 
     necessary to carry out paragraphs (2) and (3).''.

[[Page 20704]]



     SEC. 1618. EXTENSION OF AUTHORIZATION OF AVIATION SECURITY 
                   FUNDING.

       Section 48301(a) of title 49, United States Code, is 
     amended by striking ``and 2006'' and inserting ``2007, 2008, 
     2009, 2010, and 2011''.

                       TITLE XVII--MARITIME CARGO

     SEC. 1701. CONTAINER SCANNING AND SEALS.

       (a) Container Scanning.--Section 232(b) of the SAFE Ports 
     Act (6 U.S.C. 982(b)) is amended to read as follows:
       ``(b) Full-Scale Implementation.--
       ``(1) In general.--A container that was loaded on a vessel 
     in a foreign port shall not enter the United States (either 
     directly or via a foreign port) unless the container was 
     scanned by nonintrusive imaging equipment and radiation 
     detection equipment at a foreign port before it was loaded on 
     a vessel.
       ``(2) Application.--Paragraph (1) shall apply with respect 
     to containers loaded on a vessel in a foreign country on or 
     after the earlier of--
       ``(A) July 1, 2012; or
       ``(B) such other date as may be established by the 
     Secretary under paragraph (3).
       ``(3) Establishment of earlier deadline.--The Secretary 
     shall establish a date under (2)(B) pursuant to the lessons 
     learned through the pilot integrated scanning systems 
     established under section 231.
       ``(4) Extensions.--The Secretary may extend the date 
     specified in paragraph (2)(A) or (2)(B) for 2 years, and may 
     renew the extension in additional 2-year increments, for 
     containers loaded in a port or ports, if the Secretary 
     certifies to Congress that at least two of the following 
     conditions exist:
       ``(A) Systems to scan containers in accordance with 
     paragraph (1) are not available for purchase and 
     installation.
       ``(B) Systems to scan containers in accordance with 
     paragraph (1) do not have a sufficiently low false alarm rate 
     for use in the supply chain.
       ``(C) Systems to scan containers in accordance with 
     paragraph (1) cannot be purchased, deployed, or operated at 
     ports overseas, including, if applicable, because a port does 
     not have the physical characteristics to install such a 
     system.
       ``(D) Systems to scan containers in accordance with 
     paragraph (1) cannot be integrated, as necessary, with 
     existing systems.
       ``(E) Use of systems that are available to scan containers 
     in accordance with paragraph (1) will significantly impact 
     trade capacity and the flow of cargo.
       ``(F) Systems to scan containers in accordance with 
     paragraph (1) do not adequately provide an automated 
     notification of questionable or high-risk cargo as a trigger 
     for further inspection by appropriately trained personnel.
       ``(5) Exemption for military cargo.--Notwithstanding any 
     other provision in the section, supplies bought by the 
     Secretary of Defense and transported in compliance section 
     2631 of title 10, United States Code, and military cargo of 
     foreign countries are exempt from the requirements of this 
     section.
       ``(6) Report on extensions.--An extension under paragraph 
     (4) for a port or ports shall take effect upon the expiration 
     of the 60-day period beginning on the date the Secretary 
     provides a report to Congress that--
       ``(A) states what container traffic will be affected by the 
     extension;
       ``(B) provides supporting evidence to support the 
     Secretary's certification of the basis for the extension; and
       ``(C) explains what measures the Secretary is taking to 
     ensure that scanning can be implemented as early as possible 
     at the port or ports that are the subject of the report.
       ``(7) Report on renewal of extension.--If an extension 
     under paragraph (4) takes effect, the Secretary shall, after 
     one year, submit a report to Congress on whether the 
     Secretary expects to seek to renew the extension.
       ``(8) Scanning technology standards.--In implementing 
     paragraph (1), the Secretary shall--
       ``(A) establish technological and operational standards for 
     systems to scan containers;
       ``(B) ensure that the standards are consistent with the 
     global nuclear detection architecture developed under the 
     Homeland Security Act of 2002; and
       ``(C) coordinate with other Federal agencies that 
     administer scanning or detection programs at foreign ports.
       ``(9) International trade and other obligations.--In 
     carrying out this subsection, the Secretary shall consult 
     with appropriate Federal departments and agencies and private 
     sector stakeholders, and ensure that actions under this 
     section do not violate international trade obligations, and 
     are consistent with the World Customs Organization framework, 
     or other international obligations of the United States.''.
       (b) Deadline for Container Security Standards and 
     Procedures.--Section 204(a)(4) of the SAFE Port Act (6 U.S.C. 
     944(a)(4)) is amended by--
       (1) striking ``(1) Deadline for enforcement.--'' and 
     inserting the following:
       ``(1) Deadline for enforcement.--
       ``(A) Enforcement of rule.--''; and
       (2) adding at the end the following:
       ``(B) Interim requirement.--If the interim final rule 
     described in paragraph (2) is not issued by April 1, 2008, 
     then--
       ``(i) effective not later than October 15, 2008, all 
     containers in transit to the United States shall be required 
     to meet the requirements of International Organization for 
     Standardization Publicly Available Specification 17712 
     standard for sealing containers; and
       ``(ii) the requirements of this subparagraph shall cease to 
     be effective upon the effective date of the interim final 
     rule issued pursuant to this subsection.''.

 TITLE XVIII--PREVENTING WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                               TERRORISM

     SEC. 1801. FINDINGS.

       The 9/11 Commission has made the following recommendations:
       (1) Strengthen ``counter-proliferation'' efforts.--The 
     United States should work with the international community to 
     develop laws and an international legal regime with universal 
     jurisdiction to enable any state in the world to capture, 
     interdict, and prosecute smugglers of nuclear material.
       (2) Expand the proliferation security initiative.--In 
     carrying out the Proliferation Security Initiative, the 
     United States should--
       (A) use intelligence and planning resources of the North 
     Atlantic Treaty Organization (NATO) alliance;
       (B) make participation open to non-NATO countries; and
       (C) encourage Russia and the People's Republic of China to 
     participate.
       (3) Support the cooperative threat reduction program.--The 
     United States should expand, improve, increase resources for, 
     and otherwise fully support the Cooperative Threat Reduction 
     program.

     SEC. 1802. DEFINITIONS.

       In this title:
       (1) The terms ``prevention of weapons of mass destruction 
     proliferation and terrorism'' and ``prevention of WMD 
     proliferation and terrorism'' include activities under--
       (A) the programs specified in section 1501(b) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note);
       (B) the programs for which appropriations are authorized by 
     section 3101(a)(2) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2729);
       (C) programs authorized by section 504 of the Freedom for 
     Russia and Emerging Eurasian Democracies and Open Markets 
     Support Act of 1992 (the FREEDOM Support Act) (22 U.S.C. 
     5854) and programs authorized by section 1412 of the Former 
     Soviet Union Demilitarization Act of 1992 (22 U.S.C. 5902); 
     and
       (D) a program of any agency of the Federal Government 
     having a purpose similar to that of any of the programs 
     identified in subparagraphs (A) through (C), as designated by 
     the United States Coordinator for the Prevention of Weapons 
     of Mass Destruction Proliferation and Terrorism and the head 
     of the agency.
       (2) The terms ``weapons of mass destruction'' and ``WMD'' 
     mean chemical, biological, and nuclear weapons, and chemical, 
     biological, and nuclear materials used in the manufacture of 
     such weapons.
       (3) The term ``items of proliferation concern'' means--
       (A) equipment, materials, or technology listed in--
       (i) the Trigger List of the Guidelines for Nuclear 
     Transfers of the Nuclear Suppliers Group;
       (ii) the Annex of the Guidelines for Transfers of Nuclear-
     Related Dual-Use Equipment, Materials, Software, and Related 
     Technology of the Nuclear Suppliers Group; or
       (iii) any of the Common Control Lists of the Australia 
     Group; and
       (B) any other sensitive items.

 Subtitle A--Repeal and Modification of Limitations on Assistance for 
             Prevention of WMD Proliferation and Terrorism

     SEC. 1811. REPEAL AND MODIFICATION OF LIMITATIONS ON 
                   ASSISTANCE FOR PREVENTION OF WEAPONS OF MASS 
                   DESTRUCTION PROLIFERATION AND TERRORISM.

       Consistent with the recommendations of the 9/11 Commission, 
     Congress repeals or modifies the limitations on assistance 
     for prevention of weapons of mass destruction proliferation 
     and terrorism as follows:
       (1) Soviet nuclear threat reduction act of 1991.--
     Subsections (b) and (c) of section 211 of the Soviet Nuclear 
     Threat Reduction Act of 1991 (title II of Public Law 102-228; 
     22 U.S.C. 2551 note) are repealed.
       (2) Cooperative threat reduction act of 1993.--Section 
     1203(d) of the Cooperative Threat Reduction Act of 1993 
     (title XII of Public Law 103-160; 22 U.S.C. 5952(d)) is 
     repealed.
       (3) Russian chemical weapons destruction facilities.--
     Section 1305 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) is 
     repealed.
       (4) Authority to use cooperative threat reduction funds 
     outside the former soviet union--modification of 
     certification requirement; congressional notice 
     requirement.--Section 1308 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136; 
     22 U.S.C. 5963) is amended--
       (A) in subsection (a)--
       (i) by striking ``the President may'' and inserting ``the 
     Secretary of Defense may''; and
       (ii) by striking ``if the President'' and inserting ``if 
     the Secretary of Defense, with the concurrence of the 
     Secretary of State,'';
       (B) in subsection (d)(1)--
       (i) by striking ``The President may not'' and inserting 
     ``The Secretary of Defense may not''; and
       (ii) by striking ``until the President'' and inserting 
     ``until the Secretary of Defense, with the concurrence of the 
     Secretary of State,'';
       (C) in subsection (d)(2)--
       (i) by striking ``Not later than 10 days after'' and 
     inserting ``Not later than 15 days prior to'';

[[Page 20705]]

       (ii) by striking ``the President shall'' and inserting 
     ``the Secretary of Defense shall''; and
       (iii) by striking ``Congress'' and inserting ``the 
     Committee on Armed Services and the Committee on Foreign 
     Affairs of the House of Representatives and the Committee on 
     Armed Services and the Committee on Foreign Relations of the 
     Senate''; and
       (D) in subsection (d) by adding at the end the following:
       ``(3) In the case of a situation that threatens human life 
     or safety or where a delay would severely undermine the 
     national security of the United States, notification under 
     paragraph (2) shall be made not later than 10 days after 
     obligating funds under the authority in subsection (a) for a 
     project or activity.''.

             Subtitle B--Proliferation Security Initiative

     SEC. 1821. PROLIFERATION SECURITY INITIATIVE IMPROVEMENTS AND 
                   AUTHORITIES.

       (a) Sense of Congress.--It is the sense of Congress, 
     consistent with the 9/11 Commission's recommendations, that 
     the President should strive to expand and strengthen the 
     Proliferation Security Initiative (in this subtitle referred 
     to as ``PSI'') announced by the President on May 31, 2003, 
     with a particular emphasis on the following:
       (1) Issuing a presidential directive to the relevant United 
     States Government agencies and departments that directs such 
     agencies and departments to--
       (A) establish clear PSI authorities, responsibilities, and 
     structures;
       (B) include in the budget request for each such agency or 
     department for each fiscal year, a request for funds 
     necessary for United States PSI-related activities; and
       (C) provide other necessary resources to achieve more 
     efficient and effective performance of United States PSI-
     related activities.
       (2) Increasing PSI cooperation with all countries.
       (3) Implementing the recommendations of the Government 
     Accountability Office (GAO) in the September 2006 report 
     titled ``Better Controls Needed to Plan and Manage 
     Proliferation Security Initiative Activities'' (GAO-06-937C) 
     regarding the following:
       (A) The Department of Defense and the Department of State 
     should establish clear PSI roles and responsibilities, 
     policies and procedures, interagency communication 
     mechanisms, documentation requirements, and indicators to 
     measure program results.
       (B) The Department of Defense and the Department of State 
     should develop a strategy to work with PSI-participating 
     countries to resolve issues that are impediments to 
     conducting successful PSI interdictions.
       (4) Establishing a multilateral mechanism to increase 
     coordination, cooperation, and compliance among PSI-
     participating countries.
       (b) Budget Submission.--
       (1) In general.--Each fiscal year in which activities are 
     planned to be carried out under the PSI, the President shall 
     include in the budget request for each participating United 
     States Government agency or department for that fiscal year, 
     a description of the funding and the activities for which the 
     funding is requested for each such agency or department.
       (2) Report.--Not later than the first Monday in February of 
     each year in which the President submits a budget request 
     described in paragraph (1), the Secretary of Defense and the 
     Secretary of State shall submit to Congress a comprehensive 
     joint report setting forth the following:
       (A) A three-year plan, beginning with the fiscal year for 
     the budget request, that specifies the amount of funding and 
     other resources to be provided by the United States for PSI-
     related activities over the term of the plan, including the 
     purposes for which such funding and resources will be used.
       (B) For the report submitted in 2008, a description of the 
     PSI-related activities carried out during the three fiscal 
     years preceding the year of the report, and for the report 
     submitted in 2009 and each year thereafter, a description of 
     the PSI-related activities carried out during the fiscal year 
     preceding the year of the report. The description shall 
     include, for each fiscal year covered by the report--
       (i) the amounts obligated and expended for such activities 
     and the purposes for which such amounts were obligated and 
     expended;
       (ii) a description of the participation of each department 
     or agency of the United States Government in such activities;
       (iii) a description of the participation of each foreign 
     country or entity in such activities;
       (iv) a description of any assistance provided to a foreign 
     country or entity participating in such activities in order 
     to secure such participation, in response to such 
     participation, or in order to improve the quality of such 
     participation; and
       (v) such other information as the Secretary of Defense and 
     the Secretary of State determine should be included to keep 
     Congress fully informed of the operation and activities of 
     the PSI.
       (3) Classification.--The report required by paragraph (2) 
     shall be in an unclassified form but may include a classified 
     annex as necessary.
       (c) Implementation Report.--Not later than 180 days after 
     the date of the enactment of this Act, the President shall 
     transmit to the Committee on Armed Services and the Committee 
     on Foreign Affairs of the House of Representatives and the 
     Committee on Armed Services and the Committee on Foreign 
     Relations of the Senate a report on the implementation of 
     this section. The report shall include--
       (1) the steps taken to implement the recommendations 
     described in paragraph (3) of subsection (a); and
       (2) the progress made toward implementing the matters 
     described in paragraphs (1), (2), and (4) of subsection (a).
       (d) GAO Reports.--The Government Accountability Office 
     shall submit to Congress, for each of fiscal years 2007, 
     2009, and 2011, a report with its assessment of the progress 
     and effectiveness of the PSI, which shall include an 
     assessment of the measures referred to in subsection (a).

     SEC. 1822. AUTHORITY TO PROVIDE ASSISTANCE TO COOPERATIVE 
                   COUNTRIES.

       (a) In General.--The President is authorized to provide 
     assistance under subsection (b) to any country that 
     cooperates with the United States and with other countries 
     allied with the United States to prevent the transport and 
     transshipment of items of proliferation concern in its 
     national territory or airspace or in vessels under its 
     control or registry.
       (b) Types of Assistance.--The assistance authorized under 
     subsection (a) consists of the following:
       (1) Assistance under section 23 of the Arms Export Control 
     Act (22 U.S.C. 2763).
       (2) Assistance under chapters 4 (22 U.S.C. 2346 et seq.) 
     and 5 (22 U.S.C. 2347 et seq.) of part II of the Foreign 
     Assistance Act of 1961.
       (3) Drawdown of defense excess defense articles and 
     services under section 516 of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2321j).
       (c) Congressional Notification.--Assistance authorized 
     under this section may not be provided until at least 30 days 
     after the date on which the President has provided notice 
     thereof to the Committee on Armed Services, the Committee on 
     Foreign Affairs, and the Committee on Appropriations of the 
     House of Representatives and the Committee on Armed Services, 
     the Committee on Foreign Relations, and the Committee on 
     Appropriations of the Senate, in accordance with the 
     procedures applicable to reprogramming notifications under 
     section 634A(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2394-1(a)), and has certified to such committees that 
     such assistance will be used in accordance with the 
     requirement of subsection (e) of this section.
       (d) Limitation.--Assistance may be provided to a country 
     under section (a) in no more than three fiscal years.
       (e) Use of Assistance.--Assistance provided under this 
     section shall be used to enhance the capability of the 
     recipient country to prevent the transport and transshipment 
     of items of proliferation concern in its national territory 
     or airspace, or in vessels under its control or registry, 
     including through the development of a legal framework in 
     that country to enhance such capability by criminalizing 
     proliferation, enacting strict export controls, and securing 
     sensitive materials within its borders, and to enhance the 
     ability of the recipient country to cooperate in PSI 
     operations.
       (f) Limitation on Ship or Aircraft Transfers.--
       (1) Limitation.--Except as provided in paragraph (2), the 
     President may not transfer any excess defense article that is 
     a vessel or an aircraft to a country that has not agreed, in 
     connection with such transfer, that it will support and 
     assist efforts by the United States, consistent with 
     international law, to interdict items of proliferation 
     concern until thirty days after the date on which the 
     President has provided notice of the proposed transfer to the 
     committees described in subsection (c) in accordance with the 
     procedures applicable to reprogramming notifications under 
     section 634A(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2394-1(a)), in addition to any other requirement of 
     law.
       (2) Exception.--The limitation in paragraph (1) shall not 
     apply to any transfer, not involving significant military 
     equipment, in which the primary use of the aircraft or vessel 
     will be for counternarcotics, counterterrorism, or 
     counterproliferation purposes.

  Subtitle C--Assistance to Accelerate Programs to Prevent Weapons of 
              Mass Destruction Proliferation and Terrorism

     SEC. 1831. STATEMENT OF POLICY.

       It shall be the policy of the United States, consistent 
     with the 9/11 Commission's recommendations, to eliminate any 
     obstacles to timely obligating and executing the full amount 
     of any appropriated funds for threat reduction and 
     nonproliferation programs in order to accelerate and 
     strengthen progress on preventing weapons of mass destruction 
     (WMD) proliferation and terrorism. Such policy shall be 
     implemented with concrete measures, such as those described 
     in this title, including the removal and modification of 
     statutory limits to executing funds, the expansion and 
     strengthening of the Proliferation Security Initiative, the 
     establishment of the Office of the United States Coordinator 
     for the Prevention of Weapons of Mass Destruction 
     Proliferation and Terrorism under subtitle D, and the 
     establishment of the Commission on the Prevention of Weapons 
     of Mass Destruction Proliferation and Terrorism under 
     subtitle E. As a result, Congress intends that any funds 
     authorized to be appropriated to programs for preventing WMD 
     proliferation and terrorism under this subtitle will be 
     executed in a timely manner.

     SEC. 1832. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT 
                   OF DEFENSE COOPERATIVE THREAT REDUCTION 
                   PROGRAM.

       (a) Fiscal Year 2008.--
       (1) In general.--Subject to paragraph (2), there are 
     authorized to be appropriated to the Department of Defense 
     Cooperative Threat Reduction Program such sums as may be 
     necessary for fiscal year 2008 for the following purposes:

[[Page 20706]]

       (A) Chemical weapons destruction at Shchuch'ye, Russia.
       (B) Biological weapons proliferation prevention.
       (C) Acceleration, expansion, and strengthening of 
     Cooperative Threat Reduction Program activities.
       (2) Limitation.--The sums appropriated pursuant to 
     paragraph (1) may not exceed the amounts authorized to be 
     appropriated by any national defense authorization Act for 
     fiscal year 2008 (whether enacted before or after the date of 
     the enactment of this Act) to the Department of Defense 
     Cooperative Threat Reduction Program for such purposes.
       (b) Future Years.--It is the sense of Congress that in 
     fiscal year 2008 and future fiscal years, the President 
     should accelerate and expand funding for Cooperative Threat 
     Reduction programs administered by the Department of Defense 
     and such efforts should include, beginning upon enactment of 
     this Act, encouraging additional commitments by the Russian 
     Federation and other partner nations, as recommended by the 
     9/11 Commission.

     SEC. 1833. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT 
                   OF ENERGY PROGRAMS TO PREVENT WEAPONS OF MASS 
                   DESTRUCTION PROLIFERATION AND TERRORISM.

       (a) In General.--Subject to subsection (b), there are 
     authorized to be appropriated to Department of Energy 
     National Nuclear Security Administration Defense Nuclear 
     Nonproliferation such sums as may be necessary for fiscal 
     year 2008 to accelerate, expand, and strengthen the following 
     programs to prevent weapons of mass destruction (WMD) 
     proliferation and terrorism:
       (1) The Global Threat Reduction Initiative.
       (2) The Nonproliferation and International Security 
     program.
       (3) The International Materials Protection, Control and 
     Accounting program.
       (4) The Nonproliferation and Verification Research and 
     Development program.
       (b) Limitation.--The sums appropriated pursuant to 
     subsection (a) may not exceed the amounts authorized to be 
     appropriated by any national defense authorization Act for 
     fiscal year 2008 (whether enacted before or after the date of 
     the enactment of this Act) to Department of Energy National 
     Nuclear Security Administration Defense Nuclear 
     Nonproliferation for such purposes.

Subtitle D--Office of the United States Coordinator for the Prevention 
       of Weapons of Mass Destruction Proliferation and Terrorism

     SEC. 1841. OFFICE OF THE UNITED STATES COORDINATOR FOR THE 
                   PREVENTION OF WEAPONS OF MASS DESTRUCTION 
                   PROLIFERATION AND TERRORISM.

       (a) Establishment.--There is established within the 
     Executive Office of the President an office to be known as 
     the ``Office of the United States Coordinator for the 
     Prevention of Weapons of Mass Destruction Proliferation and 
     Terrorism'' (in this section referred to as the ``Office'').
       (b) Officers.--
       (1) United states coordinator.--The head of the Office 
     shall be the United States Coordinator for the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism (in 
     this section referred to as the ``Coordinator'').
       (2) Deputy united states coordinator.--There shall be a 
     Deputy United States Coordinator for the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism (in 
     this section referred to as the ``Deputy Coordinator''), who 
     shall--
       (A) assist the Coordinator in carrying out the 
     responsibilities of the Coordinator under this subtitle; and
       (B) serve as Acting Coordinator in the absence of the 
     Coordinator and during any vacancy in the office of 
     Coordinator.
       (3) Appointment.--The Coordinator and Deputy Coordinator 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate, and shall be responsible on a 
     full-time basis for the duties and responsibilities described 
     in this section.
       (4) Limitation.--No person shall serve as Coordinator or 
     Deputy Coordinator while serving in any other position in the 
     Federal Government.
       (5) Access by congress.--The establishment of the Office of 
     the Coordinator within the Executive Office of the President 
     shall not be construed as affecting access by the Congress or 
     committees of either House to--
       (A) information, documents, and studies in the possession 
     of, or conducted by or at the direction of, the Coordinator; 
     or
       (B) personnel of the Office of the Coordinator.
       (c) Duties.--The responsibilities of the Coordinator shall 
     include the following:
       (1) Serving as the principal advisor to the President on 
     all matters relating to the prevention of weapons of mass 
     destruction (WMD) proliferation and terrorism.
       (2) Formulating a comprehensive and well-coordinated United 
     States strategy and policies for preventing WMD proliferation 
     and terrorism, including--
       (A) measurable milestones and targets to which departments 
     and agencies can be held accountable;
       (B) identification of gaps, duplication, and other 
     inefficiencies in existing activities, initiatives, and 
     programs and the steps necessary to overcome these obstacles;
       (C) plans for preserving the nuclear security investment 
     the United States has made in Russia, the former Soviet 
     Union, and other countries;
       (D) prioritized plans to accelerate, strengthen, and expand 
     the scope of existing initiatives and programs, which include 
     identification of vulnerable sites and material and the 
     corresponding actions necessary to eliminate such 
     vulnerabilities;
       (E) new and innovative initiatives and programs to address 
     emerging challenges and strengthen United States 
     capabilities, including programs to attract and retain top 
     scientists and engineers and strengthen the capabilities of 
     United States national laboratories;
       (F) plans to coordinate United States activities, 
     initiatives, and programs relating to the prevention of WMD 
     proliferation and terrorism, including those of the 
     Department of Energy, the Department of Defense, the 
     Department of State, and the Department of Homeland Security, 
     and including the Proliferation Security Initiative, the G-8 
     Global Partnership Against the Spread of Weapons and 
     Materials of Mass Destruction, United Nations Security 
     Council Resolution 1540, and the Global Initiative to Combat 
     Nuclear Terrorism;
       (G) plans to strengthen United States commitments to 
     international regimes and significantly improve cooperation 
     with other countries relating to the prevention of WMD 
     proliferation and terrorism, with particular emphasis on work 
     with the international community to develop laws and an 
     international legal regime with universal jurisdiction to 
     enable any state in the world to interdict and prosecute 
     smugglers of WMD material, as recommended by the 9/11 
     Commission; and
       (H) identification of actions necessary to implement the 
     recommendations of the Commission on the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism 
     established under subtitle E of this title.
       (3) Leading inter-agency coordination of United States 
     efforts to implement the strategy and policies described in 
     this section.
       (4) Conducting oversight and evaluation of accelerated and 
     strengthened implementation of initiatives and programs to 
     prevent WMD proliferation and terrorism by relevant 
     government departments and agencies.
       (5) Overseeing the development of a comprehensive and 
     coordinated budget for programs and initiatives to prevent 
     WMD proliferation and terrorism, ensuring that such budget 
     adequately reflects the priority of the challenges and is 
     effectively executed, and carrying out other appropriate 
     budgetary authorities.
       (d) Staff.--The Coordinator may--
       (1) appoint, employ, fix compensation, and terminate such 
     personnel as may be necessary to enable the Coordinator to 
     perform his or her duties under this title;
       (2) direct, with the concurrence of the Secretary of a 
     department or head of an agency, the temporary reassignment 
     within the Federal Government of personnel employed by such 
     department or agency, in order to implement United States 
     policy with regard to the prevention of WMD proliferation and 
     terrorism;
       (3) use for administrative purposes, on a reimbursable 
     basis, the available services, equipment, personnel, and 
     facilities of Federal, State, and local agencies;
       (4) procure the services of experts and consultants in 
     accordance with section 3109 of title 5, United States Code, 
     relating to appointments in the Federal Service, at rates of 
     compensation for individuals not to exceed the daily 
     equivalent of the rate of pay payable for a position at level 
     IV of the Executive Schedule under section 5315 of title 5, 
     United States Code; and
       (5) use the mails in the same manner as any other 
     department or agency of the executive branch.
       (e) Consultation With Commission.--The Office and the 
     Coordinator shall regularly consult with and strive to 
     implement the recommendations of the Commission on the 
     Prevention of Weapons of Mass Destruction Proliferation and 
     Terrorism, established under subtitle E of this title.
       (f) Annual Report on Strategic Plan.--For fiscal year 2009 
     and each fiscal year thereafter, the Coordinator shall submit 
     to Congress, at the same time as the submission of the budget 
     for that fiscal year under title 31, United States Code, a 
     report on the strategy and policies developed pursuant to 
     subsection (c)(2), together with any recommendations of the 
     Coordinator for legislative changes that the Coordinator 
     considers appropriate with respect to such strategy and 
     policies and their implementation or the Office of the 
     Coordinator.
       (g) Participation in National Security Council and Homeland 
     Security Council.--Section 101 of the National Security Act 
     of 1947 (50 U.S.C. 402) is amended--
       (1) by redesignating the last subsection (added as ``(i)'' 
     by section 301 of Public Law 105-292) as subsection (k); and
       (2) by adding at the end the following:
       ``(l) Participation of Coordinator for the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism.--The 
     United States Coordinator for the Prevention of Weapons of 
     Mass Destruction Proliferation and Terrorism (or, in the 
     Coordinator's absence, the Deputy United States Coordinator) 
     may, in the performance of the Coordinator's duty as 
     principal advisor to the President on all matters relating to 
     the prevention of weapons of mass destruction proliferation 
     and terrorism, and, subject to the direction of the 
     President, attend and participate in meetings of the National 
     Security Council and the Homeland Security Council.''.

[[Page 20707]]



     SEC. 1842. SENSE OF CONGRESS ON UNITED STATES-RUSSIA 
                   COOPERATION AND COORDINATION ON THE PREVENTION 
                   OF WEAPONS OF MASS DESTRUCTION PROLIFERATION 
                   AND TERRORISM.

       It is the sense of the Congress that, as soon as practical, 
     the President should engage the President of the Russian 
     Federation in a discussion of the purposes and goals for the 
     establishment of the Office of the United States Coordinator 
     for the Prevention of Weapons of Mass Destruction 
     Proliferation and Terrorism (in this section referred to as 
     the ``Office''), the authorities and responsibilities of the 
     United States Coordinator for the Prevention of Weapons of 
     Mass Destruction Proliferation and Terrorism (in this section 
     referred to as the ``United States Coordinator''), and the 
     importance of strong cooperation between the United States 
     Coordinator and a senior official of the Russian Federation 
     having authorities and responsibilities for preventing 
     weapons of mass destruction proliferation and terrorism 
     commensurate with those of the United States Coordinator, and 
     with whom the United States Coordinator should coordinate 
     planning and implementation of activities within and outside 
     of the Russian Federation having the purpose of preventing 
     weapons of mass destruction proliferation and terrorism.

Subtitle E--Commission on the Prevention of Weapons of Mass Destruction 
                      Proliferation and Terrorism

     SEC. 1851. ESTABLISHMENT OF COMMISSION ON THE PREVENTION OF 
                   WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                   TERRORISM.

       There is established the Commission on the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism (in 
     this subtitle referred to as the ``Commission'').

     SEC. 1852. PURPOSES OF COMMISSION.

       (a) In General.--The purposes of the Commission are to--
       (1) assess current activities, initiatives, and programs to 
     prevent weapons of mass destruction proliferation and 
     terrorism; and
       (2) provide a clear and comprehensive strategy and concrete 
     recommendations for such activities, initiatives, and 
     programs.
       (b) In Particular.--The Commission shall give particular 
     attention to activities, initiatives, and programs to secure 
     all nuclear weapons-usable material around the world and to 
     significantly accelerate, expand, and strengthen, on an 
     urgent basis, United States and international efforts to 
     prevent, stop, and counter the spread of nuclear weapons 
     capabilities and related equipment, material, and technology 
     to terrorists and states of concern.

     SEC. 1853. COMPOSITION OF COMMISSION.

       (a) Members.--The Commission shall be composed of 9 
     members, of whom--
       (1) 1 member shall be appointed by the leader of the Senate 
     of the Democratic Party (majority or minority leader, as the 
     case may be), with the concurrence of the leader of the House 
     of Representatives of the Democratic party (majority or 
     minority leader as the case may be), who shall serve as 
     chairman of the Commission;
       (2) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Democratic party;
       (3) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Republican party;
       (4) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Democratic party; and
       (5) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Republican party.
       (b) Qualifications.--It is the sense of Congress that 
     individuals appointed to the Commission should be prominent 
     United States citizens, with significant depth of experience 
     in the nonproliferation or arms control fields.
       (c) Deadline for Appointment.--All members of the 
     Commission shall be appointed within 90 days of the date of 
     the enactment of this Act.
       (d) Initial Meeting.--The Commission shall meet and begin 
     the operations of the Commission as soon as practicable.
       (e) Quorum; Vacancies.--After its initial meeting, the 
     Commission shall meet upon the call of the chairman or a 
     majority of its members. Six members of the Commission shall 
     constitute a quorum. Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner in 
     which the original appointment was made.

     SEC. 1854. RESPONSIBILITIES OF COMMISSION.

       (a) In General.--The Commission shall address--
       (1) the roles, missions, and structure of all relevant 
     government departments, agencies, and other actors, including 
     the Office of the United States Coordinator for the 
     Prevention of Weapons of Mass Destruction Proliferation and 
     Terrorism established under subtitle D of this title;
       (2) inter-agency coordination;
       (3) United States commitments to international regimes and 
     cooperation with other countries; and
       (4) the threat of weapons of mass destruction proliferation 
     and terrorism to the United States and its interests and 
     allies, including the threat posed by black-market networks, 
     and the effectiveness of the responses by the United States 
     and the international community to such threats.
       (b) Follow-on Baker-Cutler Report.--The Commission shall 
     also reassess, and where necessary update and expand on, the 
     conclusions and recommendations of the report titled ``A 
     Report Card on the Department of Energy's Nonproliferation 
     Programs with Russia'' of January 2001 (also known as the 
     ``Baker-Cutler Report'') and implementation of such 
     recommendations.

     SEC. 1855. POWERS OF COMMISSION.

       (a) Hearings and Evidence.--The Commission or, on the 
     authority of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out this subtitle, 
     hold such hearings and sit and act at such times and places, 
     take such testimony, receive such evidence, and administer 
     such oaths as the Commission or such designate subcommittee 
     or designated member may determine advisable.
       (b) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriations Acts, enter 
     into contracts to enable the Commission to discharge its 
     duties under this subtitle.
       (c) Staff of Commission.--
       (1) Appointment and compensation.--The chairman of the 
     Commission, in accordance with rules agreed upon by the 
     Commission, may appoint and fix the compensation of a staff 
     director and such other personnel as may be necessary to 
     enable the Commission to carry out its functions, without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of such title relating to classification 
     and General Schedule pay rates, except that no rate of pay 
     fixed under this subsection may exceed the equivalent of that 
     payable for a position at level V of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       (2) Personnel as federal employees.--
       (A) In general.--The executive director and any employees 
     of the Commission shall be employees under section 2105 of 
     title 5, United States Code, for purposes of chapters 63, 81, 
     83, 84, 85, 87, 89, and 90 of that title.
       (B) Members of commission.--Subparagraph (A) shall not be 
     construed to apply to members of the Commission.
       (3) Detailees.--Any Federal Government employee may be 
     detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the rights, 
     status, and privileges of his or her regular employment 
     without interruption.
       (4) Consultant services.--The Commission may procure the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, but at rates not 
     to exceed the daily rate paid a person occupying a position 
     at level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code.
       (5) Emphasis on security clearances.--Emphasis shall be 
     made to hire employees and retain contractors and detailees 
     with active security clearances.
       (d) Information From Federal Agencies.--
       (1) In general.--The Commission is authorized to secure 
     directly from any executive department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality of the Government, information, suggestions, 
     estimates, and statistics for the purposes of this subtitle. 
     Each department, bureau, agency, board, commission, office, 
     independent establishment, or instrumentality shall, to the 
     extent authorized by law, furnish such information, 
     suggestions, estimates, and statistics directly to the 
     Commission, upon request made by the chairman, the chairman 
     of any subcommittee created by a majority of the Commission, 
     or any member designated by a majority of the Commission.
       (2) Receipt, handling, storage, and dissemination.--
     Information shall only be received, handled, stored, and 
     disseminated by members of the Commission and its staff 
     consistent with all applicable statutes, regulations, and 
     Executive orders.
       (e) Assistance From Federal Agencies.--
       (1) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for the performance of the Commission's functions.
       (2) Other departments and agencies.--In addition to the 
     assistance prescribed in paragraph (1), departments and 
     agencies of the United States may provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as they may determine advisable and as may be 
     authorized by law.
       (f) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (g) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.

     SEC. 1856. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE 
                   ACT.

       (a) In General.--The Federal Advisory Committee Act (5 
     U.S.C. App.) shall not apply to the Commission.
       (b) Public Meetings and Release of Public Versions of 
     Reports.--The Commission shall--
       (1) hold public hearings and meetings to the extent 
     appropriate; and
       (2) release public versions of the report required under 
     section 1857.
       (c) Public Hearings.--Any public hearings of the Commission 
     shall be conducted in a manner consistent with the protection 
     of information provided to or developed for or by the 
     Commission as required by any applicable statute, regulation, 
     or Executive order.

     SEC. 1857. REPORT.

       Not later than 180 days after the appointment of the 
     Commission, the Commission shall submit to the President and 
     Congress a final report

[[Page 20708]]

     containing such findings, conclusions, and recommendations 
     for corrective measures as have been agreed to by a majority 
     of Commission members.

     SEC. 1858. TERMINATION.

       (a) In General.--The Commission, and all the authorities of 
     this subtitle, shall terminate 60 days after the date on 
     which the final report is submitted under section 1857.
       (b) Administrative Activities Before Termination.--The 
     Commission may use the 60-day period referred to in 
     subsection (a) for the purpose of concluding its activities, 
     including providing testimony to committees of Congress 
     concerning its report and disseminating the final report.

     SEC. 1859. FUNDING.

       (a) In General.--There are authorized to be appropriated 
     such sums as may be necessary for the purposes of the 
     activities of the Commission under this title.
       (b) Duration of Availability.--Amounts made available to 
     the Commission under subsection (a) shall remain available 
     until the termination of the Commission.

   TITLE XIX--INTERNATIONAL COOPERATION ON ANTITERRORISM TECHNOLOGIES

     SEC. 1901. PROMOTING ANTITERRORISM CAPABILITIES THROUGH 
                   INTERNATIONAL COOPERATION.

       (a) Findings.--Congress finds the following:
       (1) The development and implementation of technology is 
     critical to combating terrorism and other high consequence 
     events and implementing a comprehensive homeland security 
     strategy.
       (2) The United States and its allies in the global war on 
     terrorism share a common interest in facilitating research, 
     development, testing, and evaluation of equipment, 
     capabilities, technologies, and services that will aid in 
     detecting, preventing, responding to, recovering from, and 
     mitigating against acts of terrorism.
       (3) Certain United States allies in the global war on 
     terrorism, including Israel, the United Kingdom, Canada, 
     Australia, and Singapore have extensive experience with, and 
     technological expertise in, homeland security.
       (4) The United States and certain of its allies in the 
     global war on terrorism have a history of successful 
     collaboration in developing mutually beneficial equipment, 
     capabilities, technologies, and services in the areas of 
     defense, agriculture, and telecommunications.
       (5) The United States and its allies in the global war on 
     terrorism will mutually benefit from the sharing of 
     technological expertise to combat domestic and international 
     terrorism.
       (6) The establishment of an office to facilitate and 
     support cooperative endeavors between and among government 
     agencies, for-profit business entities, academic 
     institutions, and nonprofit entities of the United States and 
     its allies will safeguard lives and property worldwide 
     against acts of terrorism and other high consequence events.
       (b) Promoting Antiterrorism Through International 
     Cooperation Act.--
       (1) In general.--Title III of the Homeland Security Act of 
     2002 (6 U.S.C. 181 et seq.) is amended by adding after 
     section 316, as added by section 1101 of this Act, the 
     following:

     ``SEC. 317. PROMOTING ANTITERRORISM THROUGH INTERNATIONAL 
                   COOPERATION PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Director.--The term `Director' means the Director 
     selected under subsection (b)(2).
       ``(2) International cooperative activity.--The term 
     `international cooperative activity' includes--
       ``(A) coordinated research projects, joint research 
     projects, or joint ventures;
       ``(B) joint studies or technical demonstrations;
       ``(C) coordinated field exercises, scientific seminars, 
     conferences, symposia, and workshops;
       ``(D) training of scientists and engineers;
       ``(E) visits and exchanges of scientists, engineers, or 
     other appropriate personnel;
       ``(F) exchanges or sharing of scientific and technological 
     information; and
       ``(G) joint use of laboratory facilities and equipment.
       ``(b) Science and Technology Homeland Security 
     International Cooperative Programs Office.--
       ``(1) Establishment.--The Under Secretary shall establish 
     the Science and Technology Homeland Security International 
     Cooperative Programs Office.
       ``(2) Director.--The Office shall be headed by a Director, 
     who--
       ``(A) shall be selected, in consultation with the Assistant 
     Secretary for International Affairs, by and shall report to 
     the Under Secretary; and
       ``(B) may be an officer of the Department serving in 
     another position.
       ``(3) Responsibilities.--
       ``(A) Development of mechanisms.--The Director shall be 
     responsible for developing, in coordination with the 
     Department of State and, as appropriate, the Department of 
     Defense, the Department of Energy, and other Federal 
     agencies, understandings and agreements to allow and to 
     support international cooperative activity in support of 
     homeland security.
       ``(B) Priorities.--The Director shall be responsible for 
     developing, in coordination with the Office of International 
     Affairs and other Federal agencies, strategic priorities for 
     international cooperative activity for the Department in 
     support of homeland security.
       ``(C) Activities.--The Director shall facilitate the 
     planning, development, and implementation of international 
     cooperative activity to address the strategic priorities 
     developed under subparagraph (B) through mechanisms the Under 
     Secretary considers appropriate, including grants, 
     cooperative agreements, or contracts to or with foreign 
     public or private entities, governmental organizations, 
     businesses (including small businesses and socially and 
     economically disadvantaged small businesses (as those terms 
     are defined in sections 3 and 8 of the Small Business Act (15 
     U.S.C. 632 and 637), respectively)), federally funded 
     research and development centers, and universities.
       ``(D) Identification of partners.--The Director shall 
     facilitate the matching of United States entities engaged in 
     homeland security research with non-United States entities 
     engaged in homeland security research so that they may 
     partner in homeland security research activities.
       ``(4) Coordination.--The Director shall ensure that the 
     activities under this subsection are coordinated with the 
     Office of International Affairs and the Department of State 
     and, as appropriate, the Department of Defense, the 
     Department of Energy, and other relevant Federal agencies or 
     interagency bodies. The Director may enter into joint 
     activities with other Federal agencies.
       ``(c) Matching Funding.--
       ``(1) In general.--
       ``(A) Equitability.--The Director shall ensure that funding 
     and resources expended in international cooperative activity 
     will be equitably matched by the foreign partner government 
     or other entity through direct funding, funding of 
     complementary activities, or the provision of staff, 
     facilities, material, or equipment.
       ``(B) Grant matching and repayment.--
       ``(i) In general.--The Secretary may require a recipient of 
     a grant under this section--

       ``(I) to make a matching contribution of not more than 50 
     percent of the total cost of the proposed project for which 
     the grant is awarded; and
       ``(II) to repay to the Secretary the amount of the grant 
     (or a portion thereof), interest on such amount at an 
     appropriate rate, and such charges for administration of the 
     grant as the Secretary determines appropriate.

       ``(ii) Maximum amount.--The Secretary may not require that 
     repayment under clause (i)(II) be more than 150 percent of 
     the amount of the grant, adjusted for inflation on the basis 
     of the Consumer Price Index.
       ``(2) Foreign partners.--Partners may include Israel, the 
     United Kingdom, Canada, Australia, Singapore, and other 
     allies in the global war on terrorism as determined to be 
     appropriate by the Secretary of Homeland Security and the 
     Secretary of State.
       ``(3) Loans of equipment.--The Director may make or accept 
     loans of equipment for research and development and 
     comparative testing purposes.
       ``(d) Foreign Reimbursements.--If the Science and 
     Technology Homeland Security International Cooperative 
     Programs Office participates in an international cooperative 
     activity with a foreign partner on a cost-sharing basis, any 
     reimbursements or contributions received from that foreign 
     partner to meet its share of the project may be credited to 
     appropriate current appropriations accounts of the 
     Directorate of Science and Technology.
       ``(e) Report to Congress on International Cooperative 
     Activities.--Not later than one year after the date of 
     enactment of this section, and every 5 years thereafter, the 
     Under Secretary, acting through the Director, shall submit to 
     Congress a report containing--
       ``(1) a brief description of each grant, cooperative 
     agreement, or contract made or entered into under subsection 
     (b)(3)(C), including the participants, goals, and amount and 
     sources of funding; and
       ``(2) a list of international cooperative activities 
     underway, including the participants, goals, expected 
     duration, and amount and sources of funding, including 
     resources provided to support the activities in lieu of 
     direct funding.
       ``(f) Animal and Zoonotic Diseases.--As part of the 
     international cooperative activities authorized in this 
     section, the Under Secretary, in coordination with the Chief 
     Medical Officer, the Department of State, and appropriate 
     officials of the Department of Agriculture, the Department of 
     Defense, and the Department of Health and Human Services, may 
     enter into cooperative activities with foreign countries, 
     including African nations, to strengthen American 
     preparedness against foreign animal and zoonotic diseases 
     overseas that could harm the Nation's agricultural and public 
     health sectors if they were to reach the United States.
       ``(g) Construction; Authorities of the Secretary of 
     State.--Nothing in this section shall be construed to alter 
     or affect the following provisions of law:
       ``(1) Title V of the Foreign Relations Authorization Act, 
     Fiscal Year 1979 (22 U.S.C. 2656a et seq.).
       ``(2) Section 112b(c) of title 1, United States Code.
       ``(3) Section 1(e)(2) of the State Department Basic 
     Authorities Act of 1956 (22 U.S.C. 2651a(e)(2)).
       ``(4) Sections 2 and 27 of the Arms Export Control Act (22 
     U.S.C. 2752 and 22 U.S.C. 2767).
       ``(5) Section 622(c) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2382(c)).
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary.''.
       (2) Technical and conforming amendment.--The table of 
     contents in section 1(b) of

[[Page 20709]]

     the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is 
     amended by inserting after the item relating to section 316, 
     as added by section 1101 of this Act, the following:

``Sec. 317. Promoting antiterrorism through international cooperation 
              program.''.

     SEC. 1902. TRANSPARENCY OF FUNDS.

       For each Federal award (as that term is defined in section 
     2 of the Federal Funding Accountability and Transparency Act 
     of 2006 (31 U.S.C. 6101 note)) under this title or an 
     amendment made by this title, the Director of the Office of 
     Management and Budget shall ensure full and timely compliance 
     with the requirements of the Federal Funding Accountability 
     and Transparency Act of 2006 (31 U.S.C. 6101 note).

         TITLE XX--9/11 COMMISSION INTERNATIONAL IMPLEMENTATION

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``9/11 Commission 
     International Implementation Act of 2007''.

     SEC. 2002. DEFINITION.

       In this title, except as otherwise provided, the term 
     ``appropriate congressional committees''--
       (1) means--
       (A) the Committee on Foreign Affairs and the Committee on 
     Appropriations of the House of Representatives; and
       (B) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate; and
       (2) includes, for purposes of subtitle D, the Committees on 
     Armed Services of the House of Representatives and of the 
     Senate.

 Subtitle A--Quality Educational Opportunities in Predominantly Muslim 
                               Countries.

     SEC. 2011. FINDINGS; POLICY.

       (a) Findings.--Congress makes the following findings:
       (1) The report of the National Commission on Terrorist 
     Attacks Upon the United States stated that ``[e]ducation that 
     teaches tolerance, the dignity and value of each individual, 
     and respect for different beliefs is a key element in any 
     global strategy to eliminate Islamist terrorism''.
       (2) The report of the National Commission on Terrorist 
     Attacks Upon the United States concluded that ensuring 
     educational opportunity is essential to the efforts of the 
     United States to defeat global terrorism and recommended that 
     the United States Government ``should offer to join with 
     other nations in generously supporting [spending funds] . . . 
     directly for building and operating primary and secondary 
     schools in those Muslim states that commit to sensibly 
     investing their own money in public education''.
       (3) While Congress endorsed such a program in the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458), such a program has not been 
     established.
       (b) Policy.--It is the policy of the United States--
       (1) to work toward the goal of dramatically increasing the 
     availability of modern basic education through public schools 
     in predominantly Muslim countries, which will reduce the 
     influence of radical madrassas and other institutions that 
     promote religious extremism;
       (2) to join with other countries in generously supporting 
     the International Muslim Youth Opportunity Fund authorized 
     under section 7114 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004, as amended by section 2012 of this 
     Act, with the goal of building and supporting public primary 
     and secondary schools in predominantly Muslim countries that 
     commit to sensibly investing the resources of such countries 
     in modern public education;
       (3) to offer additional incentives to increase the 
     availability of modern basic education in predominantly 
     Muslim countries; and
       (4) to work to prevent financing of educational 
     institutions that support radical Islamic fundamentalism.

     SEC. 2012. INTERNATIONAL MUSLIM YOUTH OPPORTUNITY FUND.

       Section 7114 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (22 U.S.C. 2228) is amended to read as 
     follows:

     ``SEC. 7114. INTERNATIONAL MUSLIM YOUTH OPPORTUNITY FUND.

       ``(a) Purpose.--The purpose of this section is to 
     strengthen the public educational systems in predominantly 
     Muslim countries by--
       ``(1) authorizing the establishment of an International 
     Muslim Youth Educational Fund through which the United States 
     dedicates resources, either through a separate fund or 
     through an international organization, to assist those 
     countries that commit to education reform; and
       ``(2) providing resources for the Fund and to the President 
     to help strengthen the public educational systems in those 
     countries.
       ``(b) Establishment of Fund.--
       ``(1) Authority.--The President is authorized to establish 
     an International Muslim Youth Opportunity Fund and to carry 
     out programs consistent with paragraph (4) under existing 
     authorities, including the Mutual Educational and Cultural 
     Exchange Act of 1961 (commonly referred to as the `Fulbright-
     Hays Act').
       ``(2) Location.--The Fund may be established--
       ``(A) as a separate fund in the Treasury; or
       ``(B) through an international organization or 
     international financial institution, such as the United 
     Nations Educational, Science and Cultural Organization, the 
     United Nations Development Program, or the International Bank 
     for Reconstruction and Development.
       ``(3) Transfers and receipts.--The head of any department, 
     agency, or instrumentality of the United States Government 
     may transfer any amount to the Fund, and the Fund may receive 
     funds from private enterprises, foreign countries, or other 
     entities.
       ``(4) Activities of the fund.--The Fund shall support 
     programs described in this paragraph to improve the education 
     environment in predominantly Muslim countries.
       ``(A) Assistance to enhance modern educational programs.--
       ``(i) The establishment in predominantly Muslim countries 
     of a program of reform to create a modern education 
     curriculum in the public educational systems in such 
     countries.
       ``(ii) The establishment or modernization of educational 
     materials to advance a modern educational curriculum in such 
     systems.
       ``(iii) Teaching English to adults and children.
       ``(iv) The enhancement in predominantly Muslim countries of 
     community, family, and student participation in the 
     formulation and implementation of education strategies and 
     programs in such countries.
       ``(B) Assistance for training and exchange programs for 
     teachers, administrators, and students.--
       ``(i) The establishment of training programs for teachers 
     and educational administrators to enhance skills, including 
     the establishment of regional centers to train individuals 
     who can transfer such skills upon return to their countries.
       ``(ii) The establishment of exchange programs for teachers 
     and administrators in predominantly Muslim countries and with 
     other countries to stimulate additional ideas and reform 
     throughout the world, including teacher training exchange 
     programs focused on primary school teachers in such 
     countries.
       ``(iii) The establishment of exchange programs for primary 
     and secondary students in predominantly Muslim countries and 
     with other countries to foster understanding and tolerance 
     and to stimulate long-standing relationships.
       ``(C) Assistance targeting primary and secondary 
     students.--
       ``(i) The establishment in predominantly Muslim countries 
     of after-school programs, civic education programs, and 
     education programs focusing on life skills, such as inter-
     personal skills and social relations and skills for healthy 
     living, such as nutrition and physical fitness.
       ``(ii) The establishment in predominantly Muslim countries 
     of programs to improve the proficiency of primary and 
     secondary students in information technology skills.
       ``(D) Assistance for development of youth professionals.--
       ``(i) The establishment of programs in predominantly Muslim 
     countries to improve vocational training in trades to help 
     strengthen participation of Muslims and Arabs in the economic 
     development of their countries.
       ``(ii) The establishment of programs in predominantly 
     Muslim countries that target older Muslim youths not in 
     school in such areas as entrepreneurial skills, accounting, 
     micro-finance activities, work training, financial literacy, 
     and information technology.
       ``(E) Other types of assistance.--
       ``(i) The translation of foreign books, newspapers, 
     reference guides, and other reading materials into local 
     languages.
       ``(ii) The construction and equipping of modern community 
     and university libraries.
       ``(5) Authorization of appropriations.--
       ``(A) In general.--There is authorized to be appropriated 
     to the President to carry out this section such sums as may 
     be necessary for fiscal years 2008, 2009, and 2010.
       ``(B) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under subsection (a) are 
     authorized to remain available until expended.
       ``(C) Additional funds.--Amounts authorized to be 
     appropriated under subsection (a) shall be in addition to 
     amounts otherwise available for such purposes.
       ``(6) Report to congress.--Not later than 180 days after 
     the date of the enactment of this section and annually 
     thereafter until January 30, 2010, the President shall submit 
     to the appropriate congressional committees a report on 
     United States efforts to assist in the improvement of 
     educational opportunities for predominantly Muslim children 
     and youths, including the progress made toward establishing 
     the International Muslim Youth Opportunity Fund.
       ``(7) Appropriate congressional committees defined.--In 
     this subsection, the term `appropriate congressional 
     committees' means the Committee on Foreign Affairs and the 
     Committee on Appropriations of the House of Representatives 
     and the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.''.

     SEC. 2013. ANNUAL REPORT TO CONGRESS.

       (a) In General.--Not later than June 1 of each year until 
     December 31, 2009, the Secretary of State shall submit to the 
     appropriate congressional committees a report on the efforts 
     of predominantly Muslim countries to increase the 
     availability of modern basic education and to close 
     educational institutions that promote religious extremism and 
     terrorism.
       (b) Contents.--Each report shall include--
       (1) a list of predominantly Muslim countries that are 
     making serious and sustained efforts to improve the 
     availability of modern basic education and to close 
     educational institutions that promote religious extremism and 
     terrorism;
       (2) a list of such countries that are making efforts to 
     improve the availability of modern basic education and to 
     close educational institutions that promote religious 
     extremism and terrorism, but such efforts are not serious and 
     sustained;

[[Page 20710]]

       (3) a list of such countries that are not making efforts to 
     improve the availability of modern basic education and to 
     close educational institutions that promote religious 
     extremism and terrorism; and
       (4) an assessment for each country specified in each of 
     paragraphs (1), (2), and (3) of the role of United States 
     assistance with respect to the efforts made or not made to 
     improve the availability of modern basic education and close 
     educational institutions that promote religious extremism and 
     terrorism.

     SEC. 2014. EXTENSION OF PROGRAM TO PROVIDE GRANTS TO 
                   AMERICAN-SPONSORED SCHOOLS IN PREDOMINANTLY 
                   MUSLIM COUNTRIES TO PROVIDE SCHOLARSHIPS.

       (a) Findings.--Congress finds the following:
       (1) Section 7113 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (Public Law 108-458; 22 U.S.C. 2452 
     note) authorized the establishment of a pilot program to 
     provide grants to American-sponsored schools in predominantly 
     Muslim countries so that such schools could provide 
     scholarships to young people from lower-income and middle-
     income families in such countries to attend such schools, 
     where they could improve their English and be exposed to a 
     modern education.
       (2) Since the date of the enactment of that section, the 
     Middle East Partnership Initiative has pursued implementation 
     of that program.
       (b) Extension of Program.--
       (1) In general.--Section 7113 of the Intelligence Reform 
     and Terrorism Prevention Act of 2004 is amended--
       (A) in the section heading by striking 
     ``PILOT''; and
       (B) in subsection (c)--
       (i) in the subsection heading, by striking ``Pilot''; and
       (ii) by striking ``pilot'';
       (C) in subsection (d), by striking ``pilot'' each place it 
     appears;
       (D) in subsection (f) by striking ``pilot'';
       (E) in subsection (g), in the first sentence--
       (i) by inserting ``and April 15, 2008,'' after ``April 15, 
     2006,''; and
       (ii) by striking ``pilot''; and
       (F) in subsection (h)--
       (i) by striking ``2005 and 2006'' and inserting ``2007 and 
     2008''; and
       (ii) by striking ``pilot''.
       (2) Conforming amendment.--Section 1(b) of such Act is 
     amended, in the table of contents, by striking the item 
     relating to section 7113 and inserting after section 7112 the 
     following new item:

``7113. Program to provide grants to American-sponsored schools in 
              predominantly Muslim countries to provide 
              scholarships.''.

Subtitle B--Democracy and Development in the Broader Middle East Region

     SEC. 2021. MIDDLE EAST FOUNDATION.

       (a) Purposes.--The purposes of this section are to support, 
     through the provision of grants, technical assistance, 
     training, and other programs, in the countries of the broader 
     Middle East region, the expansion of--
       (1) civil society;
       (2) opportunities for political participation for all 
     citizens;
       (3) protections for internationally recognized human 
     rights, including the rights of women;
       (4) educational system reforms;
       (5) independent media;
       (6) policies that promote economic opportunities for 
     citizens;
       (7) the rule of law; and
       (8) democratic processes of government.
       (b) Middle East Foundation.--
       (1) Designation.--The Secretary of State is authorized to 
     designate an appropriate private, nonprofit organization that 
     is organized or incorporated under the laws of the United 
     States or of a State as the Middle East Foundation (referred 
     to in this section as the ``Foundation'').
       (2) Funding.--
       (A) Authority.--The Secretary of State is authorized to 
     provide funding to the Foundation through the Middle East 
     Partnership Initiative of the Department of State. 
     Notwithstanding any other provision of law, the Foundation 
     shall use amounts provided under this paragraph to carry out 
     the purposes specified in subsection (a), including through 
     making grants, using such funds as an endowment, and 
     providing other assistance to entities to carry out programs 
     for such purposes.
       (B) Funding from other sources.--In determining the amount 
     of funding to provide to the Foundation, the Secretary of 
     State shall take into consideration the amount of funds that 
     the Foundation has received from sources other than the 
     United States Government.
       (3) Notification to congressional committees.--The 
     Secretary of State shall notify the appropriate congressional 
     committees of the designation of an appropriate organization 
     as the Foundation.
       (c) Grants for Projects.--
       (1) Foundation to make grants.--The Secretary of State 
     shall enter into an agreement with the Foundation that 
     requires the Foundation to use the funds provided under 
     subsection (b)(2) to make grants to persons or entities 
     (other than governments or government entities) located in 
     the broader Middle East region or working with local partners 
     based in the broader Middle East region to carry out projects 
     that support the purposes specified in subsection (a).
       (2) Center for public policy.--Under the agreement 
     described in paragraph (1), the Foundation may make a grant 
     to an institution of higher education located in the broader 
     Middle East region to create a center for public policy for 
     the purpose of permitting scholars and professionals from the 
     countries of the broader Middle East region and from other 
     countries, including the United States, to carry out 
     research, training programs, and other activities to inform 
     public policymaking in the broader Middle East region and to 
     promote broad economic, social, and political reform for the 
     people of the broader Middle East region.
       (3) Applications for grants.--An entity seeking a grant 
     from the Foundation under this section shall submit an 
     application to the head of the Foundation at such time, in 
     such manner, and containing such information as the head of 
     the Foundation may reasonably require.
       (d) Private Character of the Foundation.--Nothing in this 
     section shall be construed to--
       (1) make the Foundation an agency or establishment of the 
     United States Government, or to make the officers or 
     employees of the Foundation officers or employees of the 
     United States for purposes of title 5, United States Code; or
       (2) impose any restriction on the Foundation's acceptance 
     of funds from private and public sources in support of its 
     activities consistent with the purposes specified in 
     subsection (a).
       (e) Limitation on Payments to Foundation Personnel.--No 
     part of the funds provided to the Foundation under this 
     section shall inure to the benefit of any officer or employee 
     of the Foundation, except as salary or reasonable 
     compensation for services.
       (f) Retention of Interest.--The Foundation may hold funds 
     provided under this section in interest-bearing accounts 
     prior to the disbursement of such funds to carry out the 
     purposes specified in subsection (a), and may retain for such 
     purposes any interest earned without returning such interest 
     to the Treasury of the United States. The Foundation may 
     retain and use such funds as an endowment to carry out the 
     purposes specified in subsection (a).
       (g) Financial Accountability.--
       (1) Independent private audits of the foundation.--The 
     accounts of the Foundation shall be audited annually in 
     accordance with generally accepted auditing standards by 
     independent certified public accountants or independent 
     licensed public accountants certified or licensed by a 
     regulatory authority of a State or other political 
     subdivision of the United States. The report of the 
     independent audit shall be included in the annual report 
     required by subsection (h).
       (2) GAO audits.--The financial transactions undertaken 
     pursuant to this section by the Foundation may be audited by 
     the Government Accountability Office in accordance with such 
     principles and procedures and under such rules and 
     regulations as may be prescribed by the Comptroller General 
     of the United States.
       (3) Audits of grant recipients.--
       (A) In general.--A recipient of a grant from the Foundation 
     shall agree to permit an audit of the books and records of 
     such recipient related to the use of the grant funds.
       (B) Recordkeeping.--Such recipient shall maintain 
     appropriate books and records to facilitate an audit referred 
     to in subparagraph (A), including--
       (i) separate accounts with respect to the grant funds;
       (ii) records that fully disclose the use of the grant 
     funds;
       (iii) records describing the total cost of any project 
     carried out using grant funds; and
       (iv) the amount and nature of any funds received from other 
     sources that were combined with the grant funds to carry out 
     a project.
       (h) Annual Reports.--Not later than January 31, 2008, and 
     annually thereafter, the Foundation shall submit to the 
     appropriate congressional committees and make available to 
     the public a report that includes, for the fiscal year prior 
     to the fiscal year in which the report is submitted, a 
     comprehensive and detailed description of--
       (1) the operations and activities of the Foundation that 
     were carried out using funds provided under this section;
       (2) grants made by the Foundation to other entities with 
     funds provided under this section;
       (3) other activities of the Foundation to further the 
     purposes specified in subsection (a); and
       (4) the financial condition of the Foundation.
       (i) Broader Middle East Region Defined.--In this section, 
     the term ``broader Middle East region'' means Afghanistan, 
     Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, 
     Libya, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, 
     Tunisia, United Arab Emirates, West Bank and Gaza, and Yemen.
       (j) Repeal.--Section 534(k) of Public Law 109-102 is 
     repealed.

         Subtitle C--Reaffirming United States Moral Leadership

     SEC. 2031. ADVANCING UNITED STATES INTERESTS THROUGH PUBLIC 
                   DIPLOMACY.

       (a) Finding.--Congress finds that the report of the 
     National Commission on Terrorist Attacks Upon the United 
     States stated that, ``Recognizing that Arab and Muslim 
     audiences rely on satellite television and radio, the 
     government has begun some promising initiatives in television 
     and radio broadcasting to the Arab world, Iran, and 
     Afghanistan. These efforts are beginning to reach large 
     audiences. The Broadcasting Board of Governors has asked for 
     much larger resources. It should get them.''.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States needs to improve its communication of 
     information and ideas to people in foreign countries, 
     particularly in countries with significant Muslim 
     populations; and

[[Page 20711]]

       (2) public diplomacy should reaffirm the paramount 
     commitment of the United States to democratic principles, 
     including preserving the civil liberties of all the people of 
     the United States, including Muslim-Americans.
       (c) Special Authority for Surge Capacity.--The United 
     States International Broadcasting Act of 1994 (22 U.S.C. 6201 
     et seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 316. SPECIAL AUTHORITY FOR SURGE CAPACITY.

       ``(a) Emergency Authority.--
       ``(1) In general.--Whenever the President determines it to 
     be important to the national interests of the United States 
     and so certifies to the appropriate congressional committees, 
     the President, on such terms and conditions as the President 
     may determine, is authorized to direct any department, 
     agency, or other entity of the United States to furnish the 
     Broadcasting Board of Governors with such assistance outside 
     the United States as may be necessary to provide 
     international broadcasting activities of the United States 
     with a surge capacity to support United States foreign policy 
     objectives during a crisis abroad.
       ``(2) Supersedes existing law.--The authority of paragraph 
     (1) shall supersede any other provision of law.
       ``(3) Surge capacity defined.--In this subsection, the term 
     `surge capacity' means the financial and technical resources 
     necessary to carry out broadcasting activities in a 
     geographical area during a crisis abroad.
       ``(4) Duration.--The President is authorized to exercise 
     the authority provided in subsection (a)(1) for a period of 
     up to six months, which may be renewed for one additional six 
     month period.
       ``(b) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the President such sums as may be necessary for the 
     President to carry out this section, except that no such 
     amount may be appropriated which, when added to amounts 
     previously appropriated for such purpose but not yet 
     obligated, would cause such amounts to exceed $25,000,000.
       ``(2) Availability of funds.--Amounts appropriated pursuant 
     to the authorization of appropriations in this subsection are 
     authorized to remain available until expended.
       ``(3) Designation of appropriations.--Amounts appropriated 
     pursuant to the authorization of appropriations in this 
     subsection may be referred to as the `United States 
     International Broadcasting Surge Capacity Fund'.
       ``(c) Report.--The annual report submitted to the President 
     and Congress by the Broadcasting Board of Governors under 
     section 305(a)(9) shall provide a detailed description of any 
     activities carried out under this section.''.

     SEC. 2032. OVERSIGHT OF INTERNATIONAL BROADCASTING.

       (a) Transcription of Persian and Arabic Language 
     Broadcasts.--Not later than 90 days after the date of the 
     enactment of this Act, the Broadcasting Board of Governors 
     shall initiate a pilot project to transcribe into the English 
     language news and information programming broadcast by Radio 
     Farda, Radio Sawa, the Persian Service of the Voice of 
     America, and Alhurra.
       (b) Random Sampling; Public Availability.--The 
     transcription required under subsection (a) shall consist of 
     a random sampling of such programming. The transcripts shall 
     be available to Congress and the public on the Internet site 
     of the Board.
       (c) Report.--Not later than May 1, 2008, the Chairman of 
     the Broadcasting Board of Governors shall submit to the 
     Committee on Foreign Affairs of the House of Representatives 
     and Committee on Foreign Relations of the Senate a report on 
     the feasibility and utility of continuing the pilot project 
     required under subsection (a).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the ``International Broadcasting 
     Operations'' account of the Broadcasting Board of Governors 
     $2,000,000 for fiscal year 2008 to carry out the pilot 
     project required under subsection (a).

     SEC. 2033. EXPANSION OF UNITED STATES SCHOLARSHIP, EXCHANGE, 
                   AND LIBRARY PROGRAMS IN PREDOMINANTLY MUSLIM 
                   COUNTRIES.

       (a) Report; Certification.--Not later than 30 days after 
     the date of the enactment of this Act and every 180 days 
     thereafter until December 31, 2009, the Secretary of State 
     shall submit to the appropriate congressional committees a 
     report on the recommendations of the National Commission on 
     Terrorist Attacks Upon the United States and the policy goals 
     described in section 7112 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458) for 
     expanding United States scholarship, exchange, and library 
     programs in predominantly Muslim countries. Such report shall 
     include--
       (1) a certification by the Secretary of State that such 
     recommendations have been implemented; or
       (2) if the Secretary of State is unable to make the 
     certification described in paragraph (1), a description of--
       (A) the steps taken to implement such recommendations and 
     achieve such policy goals;
       (B) when the Secretary of State expects such 
     recommendations to be implemented and such policy goals to be 
     achieved; and
       (C) any allocation of resources or other actions by 
     Congress the Secretary of State considers necessary to 
     implement such recommendations and achieve such policy goals.
       (b) Termination of Duty to Report.--The duty to submit a 
     report under subsection (a) shall terminate when the 
     Secretary of State submits a certification pursuant to 
     paragraph (1) of such subsection.

     SEC. 2034. UNITED STATES POLICY TOWARD DETAINEES.

       (a) Findings.--Congress finds the following:
       (1) The National Commission on Terrorist Attacks Upon the 
     United States (commonly referred to as the ``9/11 
     Commission'') declared that the United States ``should work 
     with friends to develop mutually agreed-on principles for the 
     detention and humane treatment of captured international 
     terrorists who are not being held under a particular 
     country's criminal laws'' and recommended that the United 
     States engage its allies ``to develop a common coalition 
     approach toward the detention and humane treatment of 
     captured terrorists''.
       (2) A number of investigations remain ongoing by countries 
     that are close United States allies in the war on terrorism 
     regarding the conduct of officials, employees, and agents of 
     the United States and of other countries related to conduct 
     regarding detainees.
       (3) The Secretary of State has launched an initiative to 
     try to address the differences between the United States and 
     many of its allies regarding the treatment of detainees.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary, acting through the Legal Adviser of the 
     Department of State, should continue to build on the 
     Secretary's efforts to engage United States allies to develop 
     a common coalition approach, in compliance with Common 
     Article 3 of the Geneva Conventions and other applicable 
     legal principles, toward the detention and humane treatment 
     of individuals detained during Operation Iraqi Freedom, 
     Operation Enduring Freedom, or in connection with United 
     States counterterrorist operations.
       (c) Reporting to Congress.--
       (1) Briefings.--The Secretary of State shall keep the 
     appropriate congressional committees fully and currently 
     informed of the progress of any discussions between the 
     United States and its allies regarding the development of the 
     common coalition approach described in subsection (b).
       (2) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of State, in 
     consultation with the Attorney General and the Secretary of 
     Defense, shall submit to the appropriate congressional 
     committees a report on any progress towards developing the 
     common coalition approach described in subsection (b).
       (d) Definition.--In this section, the term ``appropriate 
     congressional committees'' means--
       (1) with respect to the House of Representatives, the 
     Committee on Foreign Affairs, the Committee on Armed 
     Services, the Committee on the Judiciary, and the Permanent 
     Select Committee on Intelligence; and
       (2) with respect to the Senate, the Committee on Foreign 
     Relations, the Committee on Armed Services, the Committee on 
     the Judiciary, and the Select Committee on Intelligence.

     Subtitle D--Strategy for the United States Relationship With 
                Afghanistan, Pakistan, and Saudi Arabia

     SEC. 2041. AFGHANISTAN.

       (a) Congressional Findings.--Congress finds the following:
       (1) A democratic, stable, and prosperous Afghanistan is 
     vital to the national security of the United States and to 
     combating international terrorism.
       (2) Following the ouster of the Taliban regime in 2001, the 
     Government of Afghanistan, with assistance from the United 
     States and the international community, has achieved some 
     notable successes, including--
       (A) adopting a constitution;
       (B) holding presidential, parliamentary, and provincial 
     council elections;
       (C) improving the protection of human rights, including 
     women's rights; and
       (D) expanding educational opportunities.
       (3) The following factors pose a serious and immediate 
     threat to the stability of Afghanistan:
       (A) Taliban and anti-government forces, al Qaeda, and 
     criminal networks.
       (B) Drug trafficking and corruption.
       (C) Weak institutions of administration, security, and 
     justice, including pervasive lack of the rule of law.
       (D) Poverty, unemployment, and lack of provision of basic 
     services.
       (4) The United States and the international community must 
     significantly increase political, economic, and military 
     support to Afghanistan to ensure its long-term stability and 
     prosperity, and to deny violent extremist groups such as al 
     Qaeda sanctuary in Afghanistan.
       (b) Statements of Policy.--The following shall be the 
     policies of the United States:
       (1) The United States shall vigorously support the people 
     and Government of Afghanistan as they continue to commit to 
     the path toward a government representing and protecting the 
     rights of all Afghans, and shall maintain its long-term 
     commitment to the people of Afghanistan by increased 
     assistance and the continued deployment of United States 
     troops in Afghanistan as long as the Government of 
     Afghanistan supports such United States involvement.
       (2) In order to reduce the ability of the Taliban and al 
     Qaeda to finance their operations through the opium trade, 
     the President shall engage aggressively with the Government 
     of Afghanistan, countries in the region or otherwise 
     influenced by the trade and transit of narcotics, as well as 
     North Atlantic Treaty Organization (NATO) partners of the 
     United States,

[[Page 20712]]

     and in consultation with Congress, to assess the success of 
     the current Afghan counter-narcotics strategy and to explore 
     additional options for addressing the narcotics crisis in 
     Afghanistan, including possible changes in rules of 
     engagement for NATO and Coalition forces for participation in 
     actions against narcotics trafficking and kingpins, and the 
     provision of comprehensive assistance to farmers who rely on 
     opium for their livelihood, including through the promotion 
     of alternative crops and livelihoods.
       (3) The United States shall continue to work with and 
     provide assistance to the Government of Afghanistan to 
     strengthen local and national government institutions and the 
     rule of law, including the training of judges and 
     prosecutors, and to train and equip the Afghan National 
     Security Forces.
       (4) The United States shall continue to call on NATO 
     members participating in operations in Afghanistan to meet 
     their commitments to provide forces and equipment, and to 
     lift restrictions on how such forces can be deployed.
       (5) The United States shall continue to foster greater 
     understanding and cooperation between the Governments of 
     Afghanistan and Pakistan by taking the following actions:
       (A) Facilitating greater communication, including through 
     official mechanisms such as the Tripartite Commission and the 
     Joint Intelligence Operations Center, and by promoting other 
     forms of exchange between the parliaments and civil society 
     of the two countries.
       (B) Urging the Government of Afghanistan to enter into a 
     political dialogue with Pakistan with respect to all issues 
     relating to the border between the two countries, with the 
     aim of establishing a mutually-recognized and monitored 
     border, open to human and economic exchange, and with both 
     countries fully responsible for border security.
       (c) Statement of Congress.--Congress strongly urges that 
     the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7501 
     et seq.) be reauthorized and updated to take into account new 
     developments in Afghanistan and in the region so as to 
     demonstrate the continued support by the United States for 
     the people and Government of Afghanistan.
       (d) Emergency Increase in Effective Police Training and 
     Policing Operations.--
       (1) Congressional finding.--Congress finds that police 
     training programs in Afghanistan have achieved far less 
     return on substantial investment to date and require a 
     substantive review and justification of the means and 
     purposes of such assistance, consequent to any provision of 
     additional resources.
       (2) Assistance authorized.--The President shall make 
     increased efforts, on an urgent basis, to--
       (A) dramatically improve the capability and effectiveness 
     of United States and international police trainers, mentors, 
     and police personnel for police training programs in 
     Afghanistan, as well as develop a pretraining screening 
     program;
       (B) increase the numbers of such trainers, mentors, and 
     personnel only if such increase is determined to improve the 
     performance and capabilities of the Afghanistan civil 
     security forces; and
       (C) assist the Government of Afghanistan, in conjunction 
     with the Afghanistan civil security forces and their 
     leadership, in addressing the corruption crisis that is 
     threatening to undermine Afghanistan's future.
       (3) Report.--Not later than 180 days after the date of the 
     enactment of this Act, and every six months thereafter until 
     September 30, 2010, the President shall transmit to the 
     appropriate congressional committees a report on United 
     States efforts to fulfill the requirements of this 
     subsection. The report required by this paragraph may be 
     transmitted concurrently with any similar report required by 
     the Afghanistan Freedom Support Act of 2002.

     SEC. 2042. PAKISTAN.

       (a) Congressional Findings.--Congress finds the following:
       (1) A democratic, stable, and prosperous Pakistan that is a 
     full and reliable partner in the struggle against the 
     Taliban, al Qaeda, and other terrorist groups, and is a 
     responsible steward of its nuclear weapons and technology, is 
     vital to the national security of the United States.
       (2) Since September 11, 2001, the Government of Pakistan 
     has been a critical ally and an important partner in removing 
     the Taliban regime in Afghanistan and combating al Qaeda.
       (3) Pakistan has made great sacrifices in the shared 
     struggle against al Qaeda-affiliated terrorist groups, 
     engaging in military operations that have led to the deaths 
     of hundreds of Pakistani security personnel and enduring acts 
     of terrorism that have killed hundreds of Pakistani 
     civilians.
       (4) Publicly-stated goals of the Government of Pakistan and 
     the national interests of the United States are in close 
     agreement in many areas, including--
       (A) curbing the proliferation of nuclear weapons 
     technology;
       (B) combating poverty and corruption;
       (C) enabling effective government institutions, including 
     public education;
       (D) promoting democracy and the rule of law, particularly 
     at the national level;
       (E) addressing the continued presence of Taliban and other 
     violent extremist forces throughout the country;
       (F) maintaining the authority of the Government of Pakistan 
     in all parts of its national territory;
       (G) securing the borders of Pakistan to prevent the 
     movement of militants and terrorists into other countries and 
     territories; and
       (H) effectively dealing with violent extremism.
       (5) The opportunity exists for shared effort in helping to 
     achieve correlative goals with the Government of Pakistan, 
     particularly--
       (A) increased United States assistance to Pakistan, as 
     appropriate, to achieve progress in meeting the goals of 
     subparagraphs (A) through (C) of paragraph (4);
       (B) increased commitment on the part of the Government of 
     Pakistan to achieve the goals of paragraph (4)(D), 
     particularly given continued concerns, based on the conduct 
     of previous elections, regarding whether parliamentary 
     elections scheduled for 2007 will be free, fair, and 
     inclusive of all political parties and carried out in full 
     accordance with internationally-recognized democratic norms; 
     and
       (C) increased commitment on the part of the Government of 
     Pakistan to take actions described in paragraph (4)(E), 
     particularly given--
       (i) the continued operation of the Taliban's Quetta shura, 
     as noted by then-North Atlantic Treaty Organization Supreme 
     Allied Commander General James Jones in testimony before the 
     Senate Foreign Relations Committee on September 21, 2006; and
       (ii) the continued operation of al Qaeda affiliates 
     Lashkar-e Taiba and Jaish-e Muhammad, sometimes under 
     different names, as demonstrated by the lack of meaningful 
     action taken against Hafiz Muhammad Saeed, Maulana Masood 
     Azhar, and other known leaders and members of such terrorist 
     organizations; and
       (D) increased commitment on the part of the Government of 
     the United States in regard to working with all elements of 
     Pakistan society in helping to achieve the correlative goals 
     described in subparagraphs (A) through (H) of paragraph (4).
       (b) Statements of Policy.--The following shall be the 
     policy of the United States:
       (1) To maintain and deepen its friendship and long-term 
     strategic relationship with Pakistan.
       (2) To work with the Government of Pakistan to combat 
     international terrorism, especially in the frontier provinces 
     of Pakistan, and to end the use of Pakistan as a safe haven 
     for terrorist groups, including those associated with al 
     Qaeda or the Taliban.
       (3) To support robust funding for programs of the United 
     States Agency for International Development and the 
     Department of State that assist the Government of Pakistan in 
     working toward the goals described in subsection (a)(4), as 
     the Government of Pakistan demonstrates a clear commitment to 
     building a moderate, democratic state.
       (4) To work with the international community to secure 
     additional financial and political support to effectively 
     implement the policies set forth in this subsection.
       (5) To facilitate a just resolution of the dispute over the 
     territory of Kashmir, to the extent that such facilitation is 
     invited and welcomed by the Governments of Pakistan and India 
     and by the people of Kashmir.
       (6) To facilitate greater communication and cooperation 
     between the Governments of Afghanistan and Pakistan for the 
     improvement of bilateral relations and cooperation in 
     combating terrorism in both countries.
       (7) To work with the Government of Pakistan to dismantle 
     existing proliferation networks and prevent the proliferation 
     of nuclear technology.
       (c) Strategy Relating to Pakistan.--
       (1) Requirement for report on strategy.--Not later than 90 
     days after the date of the enactment of this Act, the 
     President shall transmit to the appropriate congressional 
     committees a report that describes the long-term strategy of 
     the United States to engage with the Government of Pakistan 
     to achieve the goals described in subparagraphs (A) through 
     (H) of subsection (a)(4) and to carry out the policies 
     described in subsection (b).
       (2) Form.--The report required by paragraph (1) shall be 
     transmitted in unclassified form, but may include a 
     classified annex, if necessary.
       (d) Limitation on United States Security Assistance to 
     Pakistan.--
       (1) Limitation.--For fiscal year 2008, United States 
     assistance under chapter 2 of part II of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2311 et seq.) or section 23 
     of the Arms Export Control Act (22 U.S.C. 2763) may not be 
     provided to, and a license for any item controlled under the 
     Arms Export Control Act (22 U.S.C. 2751 et seq.) may not be 
     approved for, Pakistan until the President transmits to the 
     appropriate congressional committees a report that contains a 
     determination of the President that the Government of 
     Pakistan--
       (A) is committed to eliminating from Pakistani territory 
     any organization such as the Taliban, al Qaeda, or any 
     successor, engaged in military, insurgent, or terrorist 
     activities in Afghanistan;
       (B) is undertaking a comprehensive military, legal, 
     economic, and political campaign to achieving the goal 
     described in subparagraph (A); and
       (C) is currently making demonstrated, significant, and 
     sustained progress toward eliminating support or safe haven 
     for terrorists.
       (2) Memorandum of justification.--The President shall 
     include in the report required by paragraph (1) a memorandum 
     of justification setting forth the basis for the President's 
     determination under paragraph (1).
       (3) Form.--The report required by paragraph (1) and the 
     memorandum of justification required by paragraph (2) shall 
     be transmitted in unclassified form, but may include a 
     classified annex, if necessary.
       (e) Nuclear Proliferation.--

[[Page 20713]]

       (1) Congressional finding.--Congress finds that the 
     maintenance by any country of a procurement or supply network 
     for the illicit proliferation of nuclear and missile 
     technologies would be inconsistent with that country being 
     considered an ally of the United States.
       (2) Sense of congress.--It is the sense of Congress that 
     the national security interest of the United States will best 
     be served if the United States develops and implements a 
     long-term strategy to improve the United States relationship 
     with Pakistan and works with the Government of Pakistan to 
     stop nuclear proliferation.
       (f) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     the President such sums as may be necessary to provide 
     assistance described in subsection (d)(1) for Pakistan for 
     fiscal year 2008 in accordance with the requirements of 
     subsection (d)(1).
       (2) Other funds.--Amounts authorized to be appropriated 
     under this subsection are in addition to amounts otherwise 
     available for such purposes.
       (3) Declaration of policy.--Congress declares that the 
     amount of funds appropriated pursuant to the authorization of 
     appropriations under paragraph (1) and for subsequent fiscal 
     years shall be determined by the extent to which the 
     Government of Pakistan displays demonstrable progress in--
       (A) preventing al Qaeda and other terrorist organizations 
     from operating in the territory of Pakistan, including 
     eliminating terrorist training camps or facilities, arresting 
     members and leaders of terrorist organizations, and 
     countering recruitment efforts;
       (B) preventing the Taliban from using the territory of 
     Pakistan as a sanctuary from which to launch attacks within 
     Afghanistan, including by arresting Taliban leaders, stopping 
     cross-border incursions, and countering recruitment efforts; 
     and
       (C) implementing democratic reforms, including allowing 
     free, fair, and inclusive elections at all levels of 
     government in accordance with internationally-recognized 
     democratic norms, and respecting the independence of the 
     press and judiciary.
       (4) Biannual reports to congress.--
       (A) In general.--The Secretary of State shall submit to the 
     appropriate congressional committees a biannual report 
     describing in detail the extent to which the Government of 
     Pakistan has displayed demonstrable progress in meeting the 
     goals described in subparagraphs (A) through (C) of paragraph 
     (3).
       (B) Schedule for submission.--The report required by 
     subparagraph (A) shall be submitted not later than April 15 
     and October 15 of each year until October 15, 2009.
       (C) Form.--The report required by subparagraph (A) shall be 
     submitted in unclassified form, but may include a classified 
     annex, if necessary.
       (g) Extension of Waivers.--
       (1) Amendments.--The Act entitled ``An Act to authorize the 
     President to exercise waivers of foreign assistance 
     restrictions with respect to Pakistan through September 30, 
     2003, and for other purposes'', approved October 27, 2001 
     (Public Law 107-57; 115 Stat. 403), is amended--
       (A) in section 1(b)--
       (i) in the heading, to read as follows:
       ``(b) Fiscal Years 2007 and 2008--''; and
       (ii) in paragraph (1), by striking ``any provision'' and 
     all that follows through ``that prohibits'' and inserting 
     ``any provision of an Act making appropriations for foreign 
     operations, export financing, and related programs 
     appropriations for fiscal year 2007 or 2008 (or any other 
     appropriations Act) that prohibits'';
       (B) in section 3(2), by striking ``Such provision'' and all 
     that follows through ``as are'' and inserting ``Such 
     provision of an Act making appropriations for foreign 
     operations, export financing, and related programs 
     appropriations for fiscal years 2002 through 2008 (or any 
     other appropriations Act) as are''; and
       (C) in section 6, by striking ``the provisions'' and all 
     that follows and inserting ``the provisions of this Act shall 
     terminate on October 1, 2008.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     take effect on October 1, 2006.
       (3) Sense of congress.--It is the sense of Congress that 
     determinations to provide extensions of waivers of foreign 
     assistance prohibitions with respect to Pakistan pursuant to 
     Public Law 107-57 for fiscal years after the fiscal years 
     specified in the amendments made by paragraph (1) to Public 
     Law 107-57 should be informed by demonstrable progress in 
     achieving the goals described in subparagraphs (A) through 
     (C) of subsection (f)(3).

     SEC. 2043. SAUDI ARABIA.

       (a) Congressional Findings.--Congress finds that:
       (1) The National Commission on Terrorist Attacks Upon the 
     United States concluded that the Kingdom of Saudi Arabia has 
     ``been a problematic ally in combating Islamic extremism. At 
     the level of high policy, Saudi Arabia's leaders cooperated 
     with American diplomatic initiatives aimed at the Taliban or 
     Pakistan before 9/11. At the same time, Saudi Arabia's 
     society was a place where al Qaeda raised money directly from 
     individuals and through charities. It was the society that 
     produced 15 of the 19 hijackers.''.
       (2) Saudi Arabia has an uneven record in the fight against 
     terrorism, especially with respect to terrorist financing, 
     support for radical madrassas, a lack of political outlets 
     for its citizens, and restrictions on religious pluralism, 
     that poses a threat to the security of the United States, the 
     international community, and Saudi Arabia itself.
       (3) The National Commission on Terrorist Attacks Upon the 
     United States concluded that the ``problems in the U.S.-Saudi 
     relationship must be confronted, openly''. It recommended 
     that the two countries build a relationship that includes a 
     ``shared commitment to political and economic reform . . . 
     and a shared interest in greater tolerance and cultural 
     respect, translating into a commitment to fight the violent 
     extremists who foment hatred''.
       (4) The United States has a national security interest in 
     working with the Government of Saudi Arabia to combat 
     international terrorists that operate within that country or 
     that operate outside Saudi Arabia with the support of 
     citizens of Saudi Arabia.
       (5) The United States and Saudi Arabia established a 
     Strategic Dialogue in 2005, which provides a framework for 
     the two countries to discuss a range of bilateral issues at 
     high levels, including counterterrorism policy and political 
     and economic reforms.
       (6) It is in the national security interest of the United 
     States to support the Government of Saudi Arabia in 
     undertaking a number of political and economic reforms, 
     including increasing anti-terrorism operations conducted by 
     law enforcement agencies, providing more political and 
     religious rights to its citizens, increasing the rights of 
     women, engaging in comprehensive educational reform, 
     enhancing monitoring of charitable organizations, and 
     promulgating and enforcing domestic laws and regulation on 
     terrorist financing.
       (b) Statement of Policy.--It is the policy of the United 
     States--
       (1) to engage with the Government of Saudi Arabia to openly 
     confront the issue of terrorism, as well as other problematic 
     issues such as the lack of political freedoms;
       (2) to enhance counterterrorism cooperation with the 
     Government of Saudi Arabia; and
       (3) to support the efforts of the Government of Saudi 
     Arabia to make political, economic, and social reforms, 
     including greater religious freedom, throughout the country.
       (c) Progress in Counterterrorism and Other Cooperation.--
       (1) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the President shall transmit to the 
     appropriate congressional committees a report that--
       (A) describes the long-term strategy of the United States--
       (i) to engage with the Government of Saudi Arabia to 
     facilitate political, economic, and social reforms, including 
     greater religious freedom, that will enhance the ability of 
     the Government of Saudi Arabia to combat international 
     terrorism; and
       (ii) to work with the Government of Saudi Arabia to combat 
     terrorism, including through effective measures to prevent 
     and prohibit the financing of terrorists by Saudi 
     institutions and citizens; and
       (B) provides an assessment of the progress made by Saudi 
     Arabia since 2001 on the matters described in subparagraph 
     (A), including--
       (i) whether Saudi Arabia has become a party to the 
     International Convention for the Suppression of the Financing 
     of Terrorism; and
       (ii) the activities and authority of the Saudi 
     Nongovernmental National Commission for Relief and Charity 
     Work Abroad.
       (2) Form.--The report required by paragraph (1) shall be 
     transmitted in unclassified form, but may include a 
     classified annex, if necessary.

                 TITLE XXI--ADVANCING DEMOCRATIC VALUES

     SEC. 2101. SHORT TITLE.

       This title may be cited as the ``Advance Democratic Values, 
     Address Nondemocratic Countries, and Enhance Democracy Act of 
     2007'' or the ``ADVANCE Democracy Act of 2007''.

     SEC. 2102. FINDINGS.

       Congress finds the following:
       (1) The United States Declaration of Independence, the 
     United States Constitution, and the United Nations Universal 
     Declaration of Human Rights declare that all human beings are 
     created equal and possess certain rights and freedoms, 
     including the fundamental right to participate in the 
     political life and government of their respective countries.
       (2) The development of democracy constitutes a long-term 
     challenge that goes through unique phases and paces in 
     individual countries as such countries develop democratic 
     institutions such as a thriving civil society, a free media, 
     and an independent judiciary, and must be led from within 
     such countries, including by nongovernmental and governmental 
     reformers.
       (3) Individuals, nongovernmental organizations, and 
     movements that support democratic principles, practices, and 
     values are under increasing pressure from some governments of 
     nondemocratic countries (as well as, in some cases, from 
     governments of democratic transition countries), including by 
     using administrative and regulatory mechanisms to undermine 
     the activities of such individuals, organizations, and 
     movements.
       (4) Democratic countries have a number of instruments 
     available for supporting democratic reformers who are 
     committed to promoting effective, nonviolent change in 
     nondemocratic countries and who are committed to keeping 
     their countries on the path to democracy.
       (5) United States efforts to promote democracy and protect 
     human rights can be strengthened to improve assistance for 
     such reformers, including through an enhanced role for United 
     States diplomats when properly trained and given the right 
     incentives.

[[Page 20714]]

       (6) The promotion of democracy requires a broad-based 
     effort with cooperation between all democratic countries, 
     including through the Community of Democracies.

     SEC. 2103. STATEMENT OF POLICY.

       It is the policy of the United States--
       (1) to promote freedom and democracy in foreign countries 
     as a fundamental component of United States foreign policy, 
     along with other key foreign policy goals;
       (2) to affirm fundamental freedoms and internationally 
     recognized human rights in foreign countries, as reflected in 
     the Universal Declaration of Human Rights and the 
     International Covenant on Civil and Political Rights, and to 
     condemn offenses against those freedoms and rights as a 
     fundamental component of United States foreign policy, along 
     with other key foreign policy goals;
       (3) to protect and promote such fundamental freedoms and 
     rights, including the freedoms of association, of expression, 
     of the press, and of religion, and the right to own private 
     property;
       (4) to commit to the long-term challenge of promoting 
     universal democracy by promoting democratic institutions, 
     including institutions that support the rule of law (such as 
     an independent judiciary), an independent and professional 
     media, strong legislatures, a thriving civil society, 
     transparent and professional independent governmental 
     auditing agencies, civilian control of the military, and 
     institutions that promote the rights of minorities and women;
       (5) to use instruments of United States influence to 
     support, promote, and strengthen democratic principles, 
     practices, and values, including the right to free, fair, and 
     open elections, secret balloting, and universal suffrage, 
     including by--
       (A) providing appropriate support to individuals, 
     nongovernmental organizations, and movements located in 
     nondemocratic countries that aspire to live in freedom and 
     establish full democracy in such countries; and
       (B) providing political, economic, and other support to 
     foreign countries and individuals, nongovernmental 
     organizations, and movements that are willingly undertaking a 
     transition to democracy; and
       (6) to strengthen cooperation with other democratic 
     countries in order to better promote and defend shared values 
     and ideals.

     SEC. 2104. DEFINITIONS.

       In this title:
       (1) Annual report on advancing freedom and democracy.--The 
     term ``Annual Report on Advancing Freedom and Democracy'' 
     refers to the annual report submitted to Congress by the 
     Department of State pursuant to section 665(c) of the Foreign 
     Relations Authorization Act, Fiscal Year 2003 (Public Law 
     107-228; 22 U.S.C. 2151n note), in which the Department 
     reports on actions taken by the United States Government to 
     encourage respect for human rights and democracy.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Affairs of the House of Representatives and the 
     Committee on Foreign Relations of the Senate.
       (3) Assistant secretary.--The term ``Assistant Secretary'' 
     means the Assistant Secretary of State for Democracy, Human 
     Rights, and Labor.
       (4) Community of democracies and community.--The terms 
     ``Community of Democracies'' and ``Community'' mean the 
     association of democratic countries committed to the global 
     promotion of democratic principles, practices, and values, 
     which held its First Ministerial Conference in Warsaw, 
     Poland, in June 2000.
       (5) Department.--The term ``Department'' means the 
     Department of State.
       (6) Nondemocratic country or democratic transition 
     country.--The term ``nondemocratic country'' or ``democratic 
     transition country'' shall include any country which is not 
     governed by a fully functioning democratic form of 
     government, as determined by the Secretary, taking into 
     account the general consensus regarding the status of civil 
     and political rights in a country by major nongovernmental 
     organizations that conduct assessments of such conditions in 
     countries and whether the country exhibits the following 
     characteristics:
       (A) All citizens of such country have the right to, and are 
     not restricted in practice from, fully and freely 
     participating in the political life of such country.
       (B) The national legislative body of such country and, if 
     directly elected, the head of government of such country, are 
     chosen by free, fair, open, and periodic elections, by 
     universal and equal suffrage, and by secret ballot.
       (C) More than one political party in such country has 
     candidates who seek elected office at the national level and 
     such parties are not restricted in their political activities 
     or their process for selecting such candidates, except for 
     reasonable administrative requirements commonly applied in 
     countries categorized as fully democratic.
       (D) All citizens in such country have a right to, and are 
     not restricted in practice from, fully exercising such 
     fundamental freedoms as the freedom of expression, 
     conscience, and peaceful assembly and association, and such 
     country has a free, independent, and pluralistic media.
       (E) The current government of such country did not come to 
     power in a manner contrary to the rule of law.
       (F) Such country possesses an independent judiciary and the 
     government of such country generally respects the rule of 
     law.
       (G) Such country does not violate other core principles 
     enshrined in the United Nations Charter, the Universal 
     Declaration of Human Rights, the International Covenant on 
     Civil and Political Rights, United Nations Commission on 
     Human Rights Resolution 1499/57 (entitled ``Promotion of the 
     Right to Democracy''), and the United Nations General 
     Assembly Resolution 55/96 (entitled ``Promoting and 
     consolidating democracy'').
       (H) As applicable, whether the country has scored favorably 
     on the political, civil liberties, corruption, and rule of 
     law indicators used to determine eligibility for financial 
     assistance disbursed from the Millennium Challenge Account.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of State.

      Subtitle A--Activities to Enhance the Promotion of Democracy

     SEC. 2111. DEMOCRACY PROMOTION AT THE DEPARTMENT OF STATE.

       (a) Democracy Liaison Officers.--
       (1) In general.--The Secretary of State shall establish and 
     staff Democracy Liaison Officer positions. Democracy Liaison 
     Officers shall serve under the supervision of the Assistant 
     Secretary. Democracy Liaison Officers may be assigned to the 
     following posts:
       (A) United States missions to, or liaisons with, regional 
     and multilateral organizations, including the United States 
     missions to the European Union, African Union, Organization 
     of American States, and any other appropriate regional 
     organization, the Organization for Security and Cooperation 
     in Europe, the United Nations and its relevant specialized 
     agencies, and the North Atlantic Treaty Organization.
       (B) Regional public diplomacy centers of the Department of 
     State.
       (C) United States combatant commands.
       (D) Other posts as designated by the Secretary.
       (2) Responsibilities.--Each Democracy Liaison Officer 
     should--
       (A) provide expertise on effective approaches to promote 
     and build democracy;
       (B) assist in formulating and implementing strategies for 
     transitions to democracy; and
       (C) carry out such other responsibilities as the Secretary 
     or the Assistant Secretary may assign.
       (3) New positions.--To the fullest extent practicable, 
     taking into consideration amounts appropriated to carry out 
     this subsection and personnel available for assignment to the 
     positions described in paragraph (1), the Democracy Liaison 
     Officer positions established under subsection (a) shall be 
     new positions that are in addition to existing positions with 
     responsibility for other human rights and democracy related 
     issues and programs, including positions with responsibility 
     for labor issues.
       (4) Relationship to other authorities.--Nothing in this 
     subsection may be construed as altering any authority or 
     responsibility of a chief of mission or other employee of a 
     diplomatic mission of the United States provided under any 
     other provision of law, including any authority or 
     responsibility for the development or implementation of 
     strategies to promote democracy.
       (b) Office Related to Democratic Movements and 
     Transitions.--
       (1) Establishment.--There shall be identified within the 
     Bureau of Democracy, Human Rights, and Labor of the 
     Department at least one office that shall be responsible for 
     working with democratic movements and facilitating the 
     transition to full democracy of nondemocratic countries and 
     democratic transition countries.
       (2) Responsibilities.--The Assistant Secretary shall, 
     including by acting through the office or offices identified 
     pursuant to paragraph (1)--
       (A) provide support for Democratic Liaison Officers 
     established under subsection (a);
       (B) develop relations with, consult with, and provide 
     assistance to nongovernmental organizations, individuals, and 
     movements that are committed to the peaceful promotion of 
     democracy and fundamental rights and freedoms, including 
     fostering relationships with the United States Government and 
     the governments of other democratic countries; and
       (C) assist officers and employees of regional bureaus of 
     the Department to develop strategies and programs to promote 
     peaceful change in nondemocratic countries and democratic 
     transition countries.
       (3) Liaison.--Within the Bureau of Democracy, Human Rights, 
     and Labor, the Assistant Secretary shall identify officers or 
     employees who have expertise in and shall be responsible for 
     working with nongovernmental organizations, individuals, and 
     movements that develop relations with, consult with, and 
     provide assistance to nongovernmental organizations, 
     individuals, and movements in foreign countries that are 
     committed to the peaceful promotion of democracy and 
     fundamental rights and freedoms.
       (c) Actions by Chiefs of Mission.--Each chief of mission in 
     each nondemocratic country or democratic transition country 
     should--
       (1) develop, as part of annual program planning, a strategy 
     to promote democratic principles, practices, and values in 
     each such foreign country and to provide support, as 
     appropriate, to nongovernmental organizations, individuals, 
     and movements in each such country that are committed to 
     democratic principles, practices, and values, such as by--
       (A) consulting and coordinating with and providing support 
     to such nongovernmental organizations, individuals, and 
     movements regarding the promotion of democracy;
       (B) issuing public condemnations of violations of 
     internationally recognized human rights, including violations 
     of religious freedom, and visiting local landmarks and other 
     local sites associated with nonviolent protest in support of 
     democracy and freedom from oppression; and

[[Page 20715]]

       (C) holding periodic meetings with such nongovernmental 
     organizations, individuals, and movements to discuss 
     democracy and political, social, and economic freedoms;
       (2) hold ongoing discussions with the leaders of each such 
     nondemocratic country or democratic transition country 
     regarding progress toward a democratic system of governance 
     and the development of political, social, and economic 
     freedoms and respect for human rights, including freedom of 
     religion or belief, in such country; and
       (3) conduct meetings with civil society, interviews with 
     media that can directly reach citizens of each such country, 
     and discussions with students and young people of each such 
     country regarding progress toward a democratic system of 
     governance and the development of political, social, and 
     economic freedoms in each such country.
       (d) Recruitment.--The Secretary should seek to increase the 
     proportion of members of the Foreign Service who serve in the 
     Bureau of Democracy, Human Rights, and Labor.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section.

     SEC. 2112. DEMOCRACY FELLOWSHIP PROGRAM.

       (a) Requirement for Program.--The Secretary shall establish 
     a Democracy Fellowship Program to enable officers of the 
     Department to gain an additional perspective on democracy 
     promotion in foreign countries by working on democracy issues 
     in appropriate congressional offices or congressional 
     committees with oversight over the subject matter of this 
     title, including the Committee on Foreign Affairs and the 
     Committee on Appropriations of the House of Representatives 
     and the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate, and international or 
     nongovernmental organizations involved in democracy 
     promotion.
       (b) Selection and Placement.--The Assistant Secretary shall 
     play a central role in the selection of Democracy Fellows and 
     facilitate their placement in appropriate congressional 
     offices, congressional committees, international 
     organizations, and nongovernmental organizations.

     SEC. 2113. INVESTIGATIONS OF VIOLATIONS OF INTERNATIONAL 
                   HUMANITARIAN LAW.

       (a) In General.--The President, with the assistance of the 
     Secretary, the Under Secretary of State for Democracy and 
     Global Affairs, and the Ambassador-at-Large for War Crimes 
     Issues, shall collect information regarding incidents that 
     may constitute crimes against humanity, genocide, slavery, or 
     other violations of international humanitarian law.
       (b) Accountability.--The President shall consider what 
     actions can be taken to ensure that any government of a 
     country or the leaders or senior officials of such government 
     who are responsible for crimes against humanity, genocide, 
     slavery, or other violations of international humanitarian 
     law identified under subsection (a) are brought to account 
     for such crimes in an appropriately constituted tribunal.

Subtitle B--Strategies and Reports on Human Rights and the Promotion of 
                               Democracy

     SEC. 2121. STRATEGIES, PRIORITIES, AND ANNUAL REPORT.

       (a) Expansion of Country-Specific Strategies to Promote 
     Democracy.--
       (1) Commendation.--Congress commends the Secretary for the 
     ongoing work by the Department to develop country-specific 
     strategies for promoting democracy.
       (2) Expansion.--The Secretary shall expand the development 
     of such strategies to all nondemocratic countries and 
     democratic transition countries.
       (3) Briefings.--The Secretary shall keep the appropriate 
     congressional committees fully and currently informed as such 
     strategies are developed.
       (b) Report Title.--Section 665(c) of the Foreign Relations 
     Authorization Act, Fiscal Year 2003 (Public Law 107-228; 22 
     U.S.C. 2151n note) is amended, in the first sentence, by 
     inserting ``entitled the Annual Report on Advancing Freedom 
     and Democracy'' before the period at the end.
       (c) Enhanced Report.--The Annual Report on Advancing 
     Freedom and Democracy shall include, as appropriate--
       (1) United States priorities for the promotion of democracy 
     and the protection of human rights for each nondemocratic 
     country and democratic transition country, developed in 
     consultation with relevant parties in such countries; and
       (2) specific actions and activities of chiefs of missions 
     and other United States officials to promote democracy and 
     protect human rights in each such country.
       (d) Schedule of Submission.--Section 665(c) of the Foreign 
     Relations Authorization Act, Fiscal Year 2003 (Public Law 
     107-228; 22 U.S.C. 2151n note) is amended, in the second 
     sentence, by striking ``30 days'' and inserting ``90 days''.

     SEC. 2122. TRANSLATION OF HUMAN RIGHTS REPORTS.

       (a) In General.--The Secretary shall continue to expand the 
     timely translation of the applicable parts of the Country 
     Reports on Human Rights Practices required under sections 
     116(d) and 502B(b) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151n(d) and 2304(b)), the Annual Report on 
     International Religious Freedom required under section 102(b) 
     of the International Religious Freedom Act of 1998 (22 U.S.C. 
     6412(b)), the Trafficking in Persons Report required under 
     section 110(b) of the Trafficking Victims Protection Act of 
     2000 (22 U.S.C. 7107(b)), and any separate report on 
     democracy and human rights policy submitted in accordance 
     with section 665(c) of the Foreign Relations Authorization 
     Act, Fiscal Year 2003 (Public Law 107-228; 22 U.S.C. 2151n 
     note) into the principal languages of as many countries as 
     possible, with particular emphasis on nondemocratic 
     countries, democratic transition countries, and countries in 
     which extrajudicial killings, torture, or other serious 
     violations of human rights have occurred.
       (b) Report.--
       (1) Requirement.--Not later than April 1, 2008, and 
     annually thereafter through 2010, the Secretary shall submit 
     to the appropriate congressional committees a report 
     describing any translations of the reports specified in 
     subsection (a) for the preceding year, including which of 
     such reports have been translated into which principal 
     languages and the countries in which such translations have 
     been distributed by posting on a relevant website or 
     elsewhere.
       (2) Form.--The report required under paragraph (1) may be 
     included in any separate report on democracy and human rights 
     policy submitted in accordance with section 665(c) of the 
     Foreign Relations Authorization Act, Fiscal Year 2003.

Subtitle C--Advisory Committee on Democracy Promotion and the Internet 
                   Website of the Department of State

     SEC. 2131. ADVISORY COMMITTEE ON DEMOCRACY PROMOTION.

       Congress commends the Secretary for creating an Advisory 
     Committee on Democracy Promotion, and it is the sense of 
     Congress that the Committee should play a significant role in 
     the Department's transformational diplomacy by advising the 
     Secretary regarding United States efforts to promote 
     democracy and democratic transition in connection with the 
     formulation and implementation of United States foreign 
     policy and foreign assistance, including reviewing and making 
     recommendations on--
       (1) how to improve the capacity of the Department to 
     promote democracy and human rights; and
       (2) how to improve foreign assistance programs related to 
     the promotion of democracy.

     SEC. 2132. SENSE OF CONGRESS REGARDING THE INTERNET WEBSITE 
                   OF THE DEPARTMENT OF STATE.

       It is the sense of Congress that in order to facilitate 
     access by individuals, nongovernmental organizations, and 
     movements in foreign countries to documents, streaming video 
     and audio, and other media regarding democratic principles, 
     practices, and values, and the promotion and strengthening of 
     democracy, the Secretary should take additional steps to 
     enhance the Internet site for global democracy and human 
     rights of the Department, which should include, where 
     practicable, the following:
       (1) Narratives and histories, published by the United 
     States Government, of significant democratic movements in 
     foreign countries, particularly regarding successful 
     nonviolent campaigns to promote democracy in non-democratic 
     countries and democratic transition countries.
       (2) Narratives, published by the United States Government, 
     relating to the importance of the establishment of and 
     respect for internationally recognized human rights, 
     democratic principles, practices, and values, and other 
     fundamental freedoms.
       (3) Major human rights reports by the United States 
     Government, including translations of such materials, as 
     appropriate.
       (4) Any other documents, references, or links to 
     appropriate external Internet websites (such as websites of 
     international or nongovernmental organizations), including 
     references or links to training materials, narratives, and 
     histories regarding successful democratic movements.

     Subtitle D--Training in Democracy and Human Rights; Incentives

     SEC. 2141. TRAINING IN DEMOCRACY PROMOTION AND THE PROTECTION 
                   OF HUMAN RIGHTS.

       (a) In General.--The Secretary shall continue to enhance 
     training for members of the Foreign Service and civil service 
     responsible for the promotion of democracy and the protection 
     of human rights. Such training shall include appropriate 
     instruction and training materials regarding:
       (1) International documents and United States policy 
     regarding the promotion of democracy and respect for human 
     rights.
       (2) United States policy regarding the promotion and 
     strengthening of democracy around the world, with particular 
     emphasis on the transition to democracy in nondemocratic 
     countries and democratic transition countries.
       (3) For any member, chief of mission, or deputy chief of 
     mission who is to be assigned to a nondemocratic country or 
     democratic transition country, ways to promote democracy in 
     such country and to assist individuals, nongovernmental 
     organizations, and movements in such country that support 
     democratic principles, practices, and values.
       (4) The protection of internationally recognized human 
     rights (including the protection of religious freedom) and 
     standards related to such rights, provisions of United States 
     law related to such rights, diplomatic tools to promote 
     respect for such rights, and the protection of individuals 
     who have fled their countries due to violations of such 
     rights.
       (b) Consultation.--The Secretary, acting through the 
     Director of the National Foreign Affairs Training Center of 
     the Foreign Service Institute of the Department, shall 
     consult, as appropriate, with nongovernmental organizations 
     involved in the protection and promotion

[[Page 20716]]

     of such rights and the United States Commission on 
     International Religious Freedom with respect to the training 
     required by this subsection.
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     appropriate congressional committees a report containing a 
     description of the current and planned training provided to 
     Foreign Service officers in human rights and democracy 
     promotion, including such training provided to chiefs of 
     mission serving or preparing to serve in nondemocratic 
     countries or democratic transition countries.

     SEC. 2142. SENSE OF CONGRESS REGARDING ADVANCE DEMOCRACY 
                   AWARD.

       It is the sense of Congress that--
       (1) the Secretary should further strengthen the capacity of 
     the Department to carry out results-based democracy promotion 
     efforts through the establishment of an annual award to be 
     known as the ``Outstanding Achievements in Advancing 
     Democracy Award'', or the ``ADVANCE Democracy Award'', that 
     would be awarded to officers or employees of the Department; 
     and
       (2) the Secretary should establish procedures for selecting 
     recipients of such award, including any financial terms 
     associated with such award.

     SEC. 2143. PERSONNEL POLICIES AT THE DEPARTMENT OF STATE.

       In addition to the awards and other incentives already 
     implemented, the Secretary should increase incentives for 
     members of the Foreign Service and other employees of the 
     Department who take assignments relating to the promotion of 
     democracy and the protection of human rights, including the 
     following:
       (1) Providing performance pay under section 405 of the 
     Foreign Service Act of 1980 (22 U.S.C. 3965) to such members 
     and employees who carry out their assignment in an 
     outstanding manner.
       (2) Considering such an assignment as a basis for promotion 
     into the Senior Foreign Service.
       (3) Providing Foreign Service Awards under section 614 of 
     the Foreign Service Act of 1980 (22 U.S.C. 4013) to such 
     members and employees who provide distinguished or 
     meritorious service in the promotion of democracy or the 
     protection of human rights.

           Subtitle E--Cooperation With Democratic Countries

     SEC. 2151. COOPERATION WITH DEMOCRATIC COUNTRIES.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should cooperate with other democratic 
     countries to--
       (1) promote and protect democratic principles, practices, 
     and values;
       (2) promote and protect shared political, social, and 
     economic freedoms, including the freedoms of association, of 
     expression, of the press, of religion, and to own private 
     property;
       (3) promote and protect respect for the rule of law;
       (4) develop, adopt, and pursue strategies to advance common 
     interests in international organizations and multilateral 
     institutions to which members of cooperating democratic 
     countries belong; and
       (5) provide political, economic, and other necessary 
     support to countries that are undergoing a transition to 
     democracy.
       (b) Community of Democracies.--
       (1) Sense of congress.--It is the sense of Congress that--
       (A) the Community of Democracies should develop a more 
     formal mechanism for carrying out work between ministerial 
     meetings, such as through the creation of a permanent 
     secretariat with appropriate staff to carry out such work, 
     and should establish a headquarters; and
       (B) nondemocratic countries should not participate in any 
     association or group of democratic countries aimed at working 
     together to promote democracy.
       (2) Detail of personnel.--The Secretary is authorized to 
     detail on a nonreimbursable basis any employee of the 
     Department to any permanent secretariat of the Community of 
     Democracies or to the government of any country that is a 
     member of the Convening Group of the Community of 
     Democracies.
       (c) Establishment of an Office for Multilateral Democracy 
     Promotion.--The Secretary should establish an office of 
     multilateral democracy promotion with the mission to further 
     develop and strengthen the institutional structure of the 
     Community of Democracies, develop interministerial projects, 
     enhance the United Nations Democracy Caucus, manage policy 
     development of the United Nations Democracy Fund, and enhance 
     coordination with other regional and multilateral bodies with 
     jurisdiction over democracy issues.
       (d) International Center for Democratic Transition.--
       (1) Sense of congress.--It is the sense of Congress that 
     the International Center for Democratic Transition, an 
     initiative of the Government of Hungary, serves to promote 
     practical projects and the sharing of best practices in the 
     area of democracy promotion and should be supported by, in 
     particular, the United States, other European countries with 
     experiences in democratic transitions, and private 
     individuals.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated $1,000,000 for each of fiscal years 2008, 
     2009, and 2010 to the Secretary for a grant to the 
     International Center for Democratic Transition. Amounts 
     appropriated under this paragraph are authorized to remain 
     available until expended.

             Subtitle F--Funding for Promotion of Democracy

     SEC. 2161. THE UNITED NATIONS DEMOCRACY FUND.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should work with other countries to enhance 
     the goals and work of the United Nations Democracy Fund, an 
     essential tool to promote democracy, and in particular 
     support civil society in foreign countries in their efforts 
     to help consolidate democracy and bring about 
     transformational change.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated $14,000,000 for each of fiscal years 2008 
     and 2009 to the Secretary for a United States contribution to 
     the United Nations Democracy Fund.

     SEC. 2162. UNITED STATES DEMOCRACY ASSISTANCE PROGRAMS.

       (a) Sense of Congress Regarding Use of Instruments of 
     Democracy Promotion.--It is the sense of Congress that--
       (1) United States support for democracy is strengthened by 
     using a variety of different instrumentalities, such as the 
     National Endowment for Democracy, the United States Agency 
     for International Development, and the Department; and
       (2) the purpose of the Department's Human Rights and 
     Democracy Fund should be to support innovative programming, 
     media, and materials designed to uphold democratic 
     principles, practices, and values, support and strengthen 
     democratic institutions, promote human rights and the rule of 
     law, and build civil societies in countries around the world.
       (b) Sense of Congress Regarding Mechanisms for Delivering 
     Assistance.--
       (1) Findings.--Congress finds the following:
       (A) Democracy assistance has many different forms, 
     including assistance to promote the rule of law, build the 
     capacity of civil society, political parties, and 
     legislatures, improve the independence of the media and the 
     judiciary, enhance independent auditing functions, and 
     advance security sector reform.
       (B) There is a need for greater clarity on the coordination 
     and delivery mechanisms for United States democracy 
     assistance.
       (2) Sense of congress.--It is the sense of Congress that 
     the Secretary and the Administrator of the United States 
     Agency for International Development should develop 
     guidelines, in consultation with the appropriate 
     congressional committees, building on the existing framework 
     for grants, cooperative agreements, contracts, and other 
     acquisition mechanisms to guide United States missions in 
     foreign countries in coordinating United States democracy 
     assistance and selecting the appropriate combination of such 
     mechanisms for such assistance.

           TITLE XXII--INTEROPERABLE EMERGENCY COMMUNICATIONS

     SEC. 2201. INTEROPERABLE EMERGENCY COMMUNICATIONS.

       (a) In General.--Section 3006 of Public Law 109-171 (47 
     U.S.C. 309 note) is amended--
       (1) by striking paragraphs (1) and (2) of subsection (a) 
     and inserting the following:
       ``(1) may take such administrative action as is necessary 
     to establish and implement--
       ``(A) a grant program to assist public safety agencies in 
     the planning and coordination associated with, the 
     acquisition of, deployment of, or training for the use of 
     interoperable communications equipment, software and systems 
     that--
       ``(i) utilize reallocated public safety spectrum for radio 
     communication;
       ``(ii) enable interoperability with communications systems 
     that can utilize reallocated public safety spectrum for radio 
     communication; or
       ``(iii) otherwise improve or advance the interoperability 
     of public safety communications systems that utilize other 
     public safety spectrum bands; and
       ``(B) are used to establish and implement a strategic 
     technology reserve to pre-position or secure interoperable 
     communications in advance for immediate deployment in an 
     emergency or major disaster;
       ``(2) shall make payments of not to exceed $1,000,000,000, 
     in the aggregate, through fiscal year 2010 from the Digital 
     Television Transition and Public Safety Fund established 
     under section 309(j)(8)(E) of the Communications Act of 1934 
     (47 U.S.C. 309(j)(8)(E)) to carry out the grant program 
     established under paragraph (1), of which at least 
     $75,000,000, in the aggregate, shall be used for purposes 
     described in paragraph (1)(B); and
       ``(3) shall permit any funds allocated for use under 
     paragraph (1)(B) to be used for purposes identified under 
     paragraph (1)(A), if the public safety agency demonstrates 
     that it has already implemented such a strategic technology 
     reserve or demonstrates higher priority public safety 
     communications needs.'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (h), (i), and (j), respectively, and inserting 
     after subsection (a) the following:
       ``(b) Eligibility.--To be eligible for assistance under the 
     grant program established under subsection (a)(1)(A), an 
     applicant shall submit an application, at such time, in such 
     form, and containing such information as the Assistant 
     Secretary may require, including a detailed explanation of 
     how assistance received under the program would be used to 
     improve communications interoperability and ensure 
     interoperability with other public safety agencies in an 
     emergency or a major disaster.
       ``(c) Criteria for Strategic Technology Reserves.--
       ``(1) In general.--In evaluating permitted uses under 
     subsection (a)(1)(B), the Assistant Secretary shall consider 
     the continuing technological evolution of communications 
     technologies and devices, with its implicit risk of 
     obsolescence, and shall ensure, to the maximum

[[Page 20717]]

     extent feasible, that a substantial part of the reserve 
     involves prenegotiated contracts and other arrangements for 
     rapid deployment of equipment, supplies, and systems (and 
     communications service related to such equipment, supplies, 
     and systems), rather than the warehousing or storage of 
     equipment and supplies currently available at the time the 
     reserve is established.
       ``(2) Requirements and characteristics.--Funds provided to 
     meet uses described in paragraph (1) shall be used in support 
     of reserves that--
       ``(A) are capable of re-establishing communications when 
     existing critical infrastructure is damaged or destroyed in 
     an emergency or a major disaster;
       ``(B) include appropriate current, widely-used equipment, 
     such as Land Mobile Radio Systems, cellular telephones and 
     satellite- enabled equipment (and related communications 
     service), Cells-On-Wheels, Cells-On-Light-Trucks, or other 
     self-contained mobile cell sites that can be towed, backup 
     batteries, generators, fuel, and computers;
       ``(C) include equipment on hand for the Governor of each 
     State, key emergency response officials, and appropriate 
     State or local personnel;
       ``(D) include contracts (including prenegotiated contracts) 
     for rapid delivery of the most current technology available 
     from commercial sources; and
       ``(E) include arrangements for training to ensure that 
     personnel are familiar with the operation of the equipment 
     and devices to be delivered pursuant to such contracts.
       ``(3) Additional characteristics.--Portions of the reserve 
     may be virtual and may include items donated on an in-kind 
     contribution basis.
       ``(4) Allocation of funds.--In evaluating permitted uses 
     under section (a)(1)(B), the Assistant Secretary shall take 
     into account barriers to immediate deployment, including time 
     and distance, that may slow the rapid deployment of 
     equipment, supplies, and systems (and communications service 
     related to such equipment, supplies, and systems) in the 
     event of an emergency in any State.
       ``(d) Voluntary Consensus Standards.--In carrying out this 
     section, the Assistant Secretary, in cooperation with the 
     Secretary of Homeland Security, shall identify and, if 
     necessary, encourage the development and implementation of, 
     voluntary consensus standards for interoperable 
     communications systems to the greatest extent practicable, 
     but shall not require any such standard.
       ``(e) Inspector General Report and Audits.--
       ``(1) Report.--Beginning with the first fiscal year 
     beginning after the date of enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     Inspector General of the Department of Commerce shall conduct 
     an annual assessment of the management of the grant program 
     implemented under subsection (a)(1) and transmit a report 
     containing the findings of that assessment and any 
     recommendations related thereto to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce.
       ``(2) Audits.--Beginning with the first fiscal year 
     beginning after the date of enactment of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007, the 
     Inspector General of the Department of Commerce shall conduct 
     financial audits of entities receiving grants from the 
     program implemented under subsection (a)(1), and shall ensure 
     that, over the course of 4 years, such audits cover 
     recipients in a representative sample of not fewer than 25 
     States or territories. The results of any such audits shall 
     be made publicly available via web site, subject to redaction 
     as the Inspector General determines necessary to protect 
     classified and other sensitive information.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed or interpreted to preclude the use of funds 
     under this section by any public safety agency for interim or 
     long-term Internet Protocol-based interoperable solutions.''; 
     and
       (3) by striking paragraph (3) of subsection (j), as so 
     redesignated.
       (b) FCC Vulnerability Assessment and Report on Emergency 
     Communications Back-up System.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Communications Commission 
     shall conduct a vulnerability assessment of the Nation's 
     critical communications and information systems 
     infrastructure and shall evaluate the technical feasibility 
     of creating a back-up emergency communications system that 
     complements existing communications resources and takes into 
     account next generation and advanced communications 
     technologies. The overriding objective for the evaluation 
     shall be providing a framework for the development of a 
     resilient interoperable communications system for emergency 
     responders in an emergency. The Commission shall consult with 
     the National Communications System and shall evaluate all 
     reasonable options, including satellites, wireless, and 
     terrestrial-based communications systems and other 
     alternative transport mechanisms that can be used in tandem 
     with existing technologies.
       (2) Factors to be evaluated.--The evaluation under 
     paragraph (1) shall include--
       (A) a survey of all Federal agencies that use terrestrial 
     or satellite technology for communications security and an 
     evaluation of the feasibility of using existing systems for 
     the purpose of creating such an emergency back-up public 
     safety communications system;
       (B) the feasibility of using private satellite, wireless, 
     or terrestrial networks for emergency communications;
       (C) the technical options, cost, and deployment methods of 
     software, equipment, handsets or desktop communications 
     devices for public safety entities in major urban areas, and 
     nationwide; and
       (D) the feasibility and cost of necessary changes to the 
     network operations center of terrestrial-based or satellite 
     systems to enable the centers to serve as emergency back-up 
     communications systems.
       (3) Report.--
       (A) In general.--Upon the completion of the evaluation 
     under subsection (a), the Commission shall submit a report to 
     Congress that details the findings of the evaluation, 
     including a full inventory of existing public and private 
     resources most efficiently capable of providing emergency 
     communications.
       (B) Classified index.--The report on critical 
     infrastructure under this subsection may contain a classified 
     annex.
       (C) Retention of classification.--The classification of 
     information required to be provided to Congress or any other 
     department or agency under this section by the Federal 
     Communications Commission, including the assignment of a 
     level of classification of such information, shall be binding 
     on Congress and any other department or agency.
       (c) Joint Advisory Committee on Communications Capabilities 
     of Emergency Medical and Public Health Care Facilities.--
       (1) Establishment.--The Assistant Secretary of Commerce for 
     Communications and Information and the Chairman of Federal 
     Communications Commission, in consultation with the Secretary 
     of Homeland Security and the Secretary of Health and Human 
     Services, shall establish a joint advisory committee to 
     examine the communications capabilities and needs of 
     emergency medical and public health care facilities. The 
     joint advisory committee shall be composed of individuals 
     with expertise in communications technologies and emergency 
     medical and public health care, including representatives of 
     Federal, State and local governments, industry and non-profit 
     health organizations, and academia and educational 
     institutions.
       (2) Duties.--The joint advisory committee shall--
       (A) assess specific communications capabilities and needs 
     of emergency medical and public health care facilities, 
     including the including improvement of basic voice, data, and 
     broadband capabilities;
       (B) assess options to accommodate growth of basic and 
     emerging communications services used by emergency medical 
     and public health care facilities;
       (C) assess options to improve integration of communications 
     systems used by emergency medical and public health care 
     facilities with existing or future emergency communications 
     networks; and
       (D) report its findings to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce, within 6 
     months after the date of enactment of this Act.
       (d) Authorization of Emergency Medical and Public Health 
     Communications Pilot Projects.--
       (1) In general.--The Assistant Secretary of Commerce for 
     Communications and Information may establish not more than 10 
     geographically dispersed project grants to emergency medical 
     and public health care facilities to improve the capabilities 
     of emergency communications systems in emergency medical care 
     facilities.
       (2) Maximum amount.--The Assistant Secretary may not 
     provide more than $2,000,000 in Federal assistance under the 
     pilot program to any applicant.
       (3) Cost sharing.--The Assistant Secretary may not provide 
     more than 20 percent of the cost, incurred during the period 
     of the grant, of any project under the pilot program.
       (4) Maximum period of grants.--The Assistant Secretary may 
     not fund any applicant under the pilot program for more than 
     3 years.
       (5) Deployment and distribution.--The Assistant Secretary 
     shall seek to the maximum extent practicable to ensure a 
     broad geographic distribution of project sites.
       (6) Transfer of information and knowledge.--The Assistant 
     Secretary shall establish mechanisms to ensure that the 
     information and knowledge gained by participants in the pilot 
     program are transferred among the pilot program participants 
     and to other interested parties, including other applicants 
     that submitted applications.

     SEC. 2202. CLARIFICATION OF CONGRESSIONAL INTENT.

        The Federal departments and agencies (including 
     independent agencies) identified under the provisions of this 
     title and title III of this Act and title VI of Public Law 
     109-295 shall carry out their respective duties and 
     responsibilities in a manner that does not impede the 
     implementation of requirements specified under this title and 
     title III of this Act and title VI of Public Law 109-295. 
     Notwithstanding the obligations under section 1806 of Public 
     Law 109-295, the provisions of this title and title III of 
     this Act and title VI of Public Law 109-295 shall not 
     preclude or obstruct any such department or agency from 
     exercising its other authorities related to emergency 
     communications matters.

     SEC. 2203. CROSS BORDER INTEROPERABILITY REPORTS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Federal

[[Page 20718]]

     Communications Commission, in consultation with the 
     Department of Homeland Security's Office of Emergency 
     Communications, the Office of Management of Budget, and the 
     Department of State shall report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce on--
       (1) the status of the mechanism established by the 
     President under section 7303(c) of the Intelligence Reform 
     and Terrorism Prevention Act of 2004 (6 U.S.C. 194(c)) for 
     coordinating cross border interoperability issues between--
       (A) the United States and Canada; and
       (B) the United States and Mexico;
       (2) the status of treaty negotiations with Canada and 
     Mexico regarding the coordination of the re-banding of 800 
     megahertz radios, as required under the final rule of the 
     Federal Communication Commission in the ``Private Land Mobile 
     Services; 800 MHz Public Safety Interface Proceeding'' (WT 
     Docket No. 02-55; ET Docket No. 00-258; ET Docket No. 95-18, 
     RM-9498; RM-10024; FCC 04-168,) including the status of any 
     outstanding issues in the negotiations between--
       (A) the United States and Canada; and
       (B) the United States and Mexico;
       (3) communications between the Commission and the 
     Department of State over possible amendments to the bilateral 
     legal agreements and protocols that govern the coordination 
     process for license applications seeking to use channels and 
     frequencies above Line A;
       (4) the annual rejection rate for the last 5 years by the 
     United States of applications for new channels and 
     frequencies by Canadian private and public entities; and
       (5) any additional procedures and mechanisms that can be 
     taken by the Commission to decrease the rejection rate for 
     applications by United States private and public entities 
     seeking licenses to use channels and frequencies above Line 
     A.
       (b) Updated Reports To Be Filed on the Status of Treaty of 
     Negotiations.--The Federal Communications Commission, in 
     conjunction with the Department of Homeland Security, the 
     Office of Management of Budget, and the Department of State 
     shall continually provide updated reports to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives on the status of treaty negotiations under 
     subsection (a)(2) until the appropriate United States treaty 
     has been revised with each of--
       (1) Canada; and
       (2) Mexico.
       (c) International Negotiations To Remedy Situation.--Not 
     later than 90 days after the date of enactment of this Act, 
     the Secretary of the Department of State shall report to 
     Congress on--
       (1) the current process for considering applications by 
     Canada for frequencies and channels by United States 
     communities above Line A;
       (2) the status of current negotiations to reform and revise 
     such process;
       (3) the estimated date of conclusion for such negotiations;
       (4) whether the current process allows for automatic 
     denials or dismissals of initial applications by the 
     Government of Canada, and whether such denials or dismissals 
     are currently occurring; and
       (5) communications between the Department of State and the 
     Federal Communications Commission pursuant to subsection 
     (a)(3).

     SEC. 2204. EXTENSION OF SHORT QUORUM.

        Notwithstanding section 4(d) of the Consumer Product 
     Safety Act (15 U.S.C. 2053(d)), 2 members of the Consumer 
     Product Safety Commission, if they are not affiliated with 
     the same political party, shall constitute a quorum for the 
     6-month period beginning on the date of enactment of this 
     Act.

     SEC. 2205. REQUIRING REPORTS TO BE SUBMITTED TO CERTAIN 
                   COMMITTEES.

        In addition to the committees specifically enumerated to 
     receive reports under this title, any report transmitted 
     under the provisions of this title shall also be transmitted 
     to the appropriate congressional committees (as defined in 
     section 2(2) of the Homeland Security Act of 2002 (6 U.S.C. 
     101(2))).

          TITLE XXIII--EMERGENCY COMMUNICATIONS MODERNIZATION

     SEC. 2301. SHORT TITLE.

       This title may be cited as the ``Improving Emergency 
     Communications Act of 2007''.

     SEC. 2302. FUNDING FOR PROGRAM.

       Section 3011 of the Digital Television Transition and 
     Public Safety Act of 2005 (Public Law 109-171; 47 U.S.C. 309 
     note) is amended--
       (1) by striking ``The'' and inserting:
       ``(a) In General.--The''; and
       (2) by adding at the end the following:
       ``(b) Credit.--The Assistant Secretary may borrow from the 
     Treasury, upon enactment of the 911 Modernization Act, such 
     sums as necessary, but not to exceed $43,500,000, to 
     implement this section. The Assistant Secretary shall 
     reimburse the Treasury, without interest, as funds are 
     deposited into the Digital Television Transition and Public 
     Safety Fund.''.

     SEC. 2303. NTIA COORDINATION OF E-911 IMPLEMENTATION.

       Section 158(b)(4) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     942(b)(4)) is amended by adding at the end thereof the 
     following: ``Within 180 days after the date of enactment of 
     the 911 Modernization Act, the Assistant Secretary and the 
     Administrator shall jointly issue regulations updating the 
     criteria to allow a portion of the funds to be used to give 
     priority to grants that are requested by public safety 
     answering points that were not capable of receiving 911 calls 
     as of the date of enactment of that Act, for the incremental 
     cost of upgrading from Phase I to Phase II compliance. Such 
     grants shall be subject to all other requirements of this 
     section.''.

                  TITLE XXIV--MISCELLANEOUS PROVISIONS

     SEC. 2401. QUADRENNIAL HOMELAND SECURITY REVIEW.

       (a) Review Required.--Title VII of the Homeland Security 
     Act of 2002 is amended by adding at the end the following:

     ``SEC. 707. QUADRENNIAL HOMELAND SECURITY REVIEW.

       ``(a) Requirement.--
       ``(1) Quadrennial reviews required.--In fiscal year 2009, 
     and every 4 years thereafter, the Secretary shall conduct a 
     review of the homeland security of the Nation (in this 
     section referred to as a `quadrennial homeland security 
     review').
       ``(2) Scope of reviews.--Each quadrennial homeland security 
     review shall be a comprehensive examination of the homeland 
     security strategy of the Nation, including recommendations 
     regarding the long-term strategy and priorities of the Nation 
     for homeland security and guidance on the programs, assets, 
     capabilities, budget, policies, and authorities of the 
     Department.
       ``(3) Consultation.--The Secretary shall conduct each 
     quadrennial homeland security review under this subsection in 
     consultation with--
       ``(A) the heads of other Federal agencies, including the 
     Attorney General, the Secretary of State, the Secretary of 
     Defense, the Secretary of Health and Human Services, the 
     Secretary of the Treasury, the Secretary of Agriculture, and 
     the Director of National Intelligence;
       ``(B) key officials of the Department; and
       ``(C) other relevant governmental and nongovernmental 
     entities, including State, local, and tribal government 
     officials, members of Congress, private sector 
     representatives, academics, and other policy experts.
       ``(4) Relationship with future years homeland security 
     program.--The Secretary shall ensure that each review 
     conducted under this section is coordinated with the Future 
     Years Homeland Security Program required under section 874.
       ``(b) Contents of Review.--In each quadrennial homeland 
     security review, the Secretary shall--
       ``(1) delineate and update, as appropriate, the national 
     homeland security strategy, consistent with appropriate 
     national and Department strategies, strategic plans, and 
     Homeland Security Presidential Directives, including the 
     National Strategy for Homeland Security, the National 
     Response Plan, and the Department Security Strategic Plan;
       ``(2) outline and prioritize the full range of the critical 
     homeland security mission areas of the Nation;
       ``(3) describe the interagency cooperation, preparedness of 
     Federal response assets, infrastructure, budget plan, and 
     other elements of the homeland security program and policies 
     of the Nation associated with the national homeland security 
     strategy, required to execute successfully the full range of 
     missions called for in the national homeland security 
     strategy described in paragraph (1) and the homeland security 
     mission areas outlined under paragraph (2);
       ``(4) identify the budget plan required to provide 
     sufficient resources to successfully execute the full range 
     of missions called for in the national homeland security 
     strategy described in paragraph (1) and the homeland security 
     mission areas outlined under paragraph (2);
       ``(5) include an assessment of the organizational alignment 
     of the Department with the national homeland security 
     strategy referred to in paragraph (1) and the homeland 
     security mission areas outlined under paragraph (2); and
       ``(6) review and assess the effectiveness of the mechanisms 
     of the Department for executing the process of turning the 
     requirements developed in the quadrennial homeland security 
     review into an acquisition strategy and expenditure plan 
     within the Department.
       ``(c) Reporting.--
       ``(1) In general.--Not later than December 31 of the year 
     in which a quadrennial homeland security review is conducted, 
     the Secretary shall submit to Congress a report regarding 
     that quadrennial homeland security review.
       ``(2) Contents of report.--Each report submitted under 
     paragraph (1) shall include--
       ``(A) the results of the quadrennial homeland security 
     review;
       ``(B) a description of the threats to the assumed or 
     defined national homeland security interests of the Nation 
     that were examined for the purposes of that review;
       ``(C) the national homeland security strategy, including a 
     prioritized list of the critical homeland security missions 
     of the Nation;
       ``(D) a description of the interagency cooperation, 
     preparedness of Federal response assets, infrastructure, 
     budget plan, and other elements of the homeland security 
     program and policies of the Nation associated with the 
     national homeland security strategy, required to execute 
     successfully the full range of missions called for in the 
     applicable national homeland security strategy referred to in 
     subsection (b)(1) and the homeland security mission areas 
     outlined under subsection (b)(2);
       ``(E) an assessment of the organizational alignment of the 
     Department with the applicable national homeland security 
     strategy referred

[[Page 20719]]

     to in subsection (b)(1) and the homeland security mission 
     areas outlined under subsection (b)(2), including the 
     Department's organizational structure, management systems, 
     budget and accounting systems, human resources systems, 
     procurement systems, and physical and technical 
     infrastructure;
       ``(F) a discussion of the status of cooperation among 
     Federal agencies in the effort to promote national homeland 
     security;
       ``(G) a discussion of the status of cooperation between the 
     Federal Government and State, local, and tribal governments 
     in preventing terrorist attacks and preparing for emergency 
     response to threats to national homeland security;
       ``(H) an explanation of any underlying assumptions used in 
     conducting the review; and
       ``(I) any other matter the Secretary considers appropriate.
       ``(3) Public availability.--The Secretary shall, consistent 
     with the protection of national security and other sensitive 
     matters, make each report submitted under paragraph (1) 
     publicly available on the Internet website of the Department.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section.''.
       (b) Preparation for Quadrennial Homeland Security Review.--
       (1) In general.--During fiscal years 2007 and 2008, the 
     Secretary of Homeland Security shall make preparations to 
     conduct the first quadrennial homeland security review under 
     section 707 of the Homeland Security Act of 2002, as added by 
     subsection (a), in fiscal year 2009, including--
       (A) determining the tasks to be performed;
       (B) estimating the human, financial, and other resources 
     required to perform each task;
       (C) establishing the schedule for the execution of all 
     project tasks;
       (D) ensuring that these resources will be available as 
     needed; and
       (E) all other preparations considered necessary by the 
     Secretary.
       (2) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     and make publicly available on the Internet website of the 
     Department of Homeland Security a detailed resource plan 
     specifying the estimated budget and number of staff members 
     that will be required for preparation of the first 
     quadrennial homeland security review.
       (c) Clerical Amendment.--The table of sections in section 
     1(b) of such Act is amended by inserting after the item 
     relating to section 706 the following new item:

``Sec. 707. Quadrennial Homeland Security Review.''.

     SEC. 2402. SENSE OF THE CONGRESS REGARDING THE PREVENTION OF 
                   RADICALIZATION LEADING TO IDEOLOGICALLY-BASED 
                   VIOLENCE.

       (a) Findings.--Congress finds the following:
       (1) The United States is engaged in a struggle against a 
     transnational terrorist movement of radical extremists that 
     plans, prepares for, and engages in acts of ideologically-
     based violence worldwide.
       (2) The threat of radicalization that leads to 
     ideologically-based violence transcends borders and has been 
     identified as a potential threat within the United States.
       (3) Radicalization has been identified as a precursor to 
     terrorism caused by ideologically-based groups.
       (4) Countering the threat of violent extremists 
     domestically, as well as internationally, is a critical 
     element of the plan of the United States for success in the 
     fight against terrorism.
       (5) United States law enforcement agencies have identified 
     radicalization that leads to ideologically-based violence as 
     an emerging threat and have in recent years identified cases 
     of extremists operating inside the United States, known as 
     ``homegrown'' extremists, with the intent to provide support 
     for, or directly commit, terrorist attacks.
       (6) Alienation of Muslim populations in the Western world 
     has been identified as a factor in the spread of 
     radicalization that could lead to ideologically-based 
     violence.
       (7) Many other factors have been identified as contributing 
     to the spread of radicalization and resulting acts of 
     ideologically-based violence. Among these is the appeal of 
     left-wing and right-wing hate groups, and other hate groups, 
     including groups operating in prisons. Other such factors 
     must be examined and countered as well in order to protect 
     the homeland from violent extremists of every kind.
       (8) Radicalization leading to ideologically-based violence 
     cannot be prevented solely through law enforcement and 
     intelligence measures.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Homeland Security, in consultation with 
     other relevant Federal agencies, should make a priority of 
     countering domestic radicalization that leads to 
     ideologically-based violence by--
       (1) using intelligence analysts and other experts to better 
     understand the process of radicalization from sympathizer to 
     activist to terrorist;
       (2) recruiting employees with diverse worldviews, skills, 
     languages, and cultural backgrounds, and expertise;
       (3) consulting with experts to ensure that the lexicon used 
     within public statements is precise and appropriate and does 
     not aid extremists by offending religious, ethnic, and 
     minority communities;
       (4) addressing prisoner radicalization and post-sentence 
     reintegration, in concert with the Attorney General and State 
     and local corrections officials;
       (5) pursuing broader avenues of dialogue with minority 
     communities, including the American Muslim community, to 
     foster mutual respect, understanding, and trust; and
       (6) working directly with State, local, and community 
     leaders to--
       (A) educate such leaders about the threat of radicalization 
     that leads to ideologically-based violence and the necessity 
     of taking preventative action at the local level; and
       (B) facilitate the sharing of best practices from other 
     countries and communities to encourage outreach to minority 
     communities, including the American Muslim community, and 
     develop partnerships among and between all religious faiths 
     and ethnic groups.

     SEC. 2403. REQUIRING REPORTS TO BE SUBMITTED TO CERTAIN 
                   COMMITTEES.

       The Committee on Commerce, Science, and Transportation of 
     the Senate shall receive the reports required by the 
     following provisions of law in the same manner and to the 
     same extent that the reports are to be received by the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate:
       (1) Section 1016(j)(1) of the Intelligence Reform and 
     Terrorist Prevention Act of 2004 (6 U.S.C. 485(j)(1)).
       (2) Section 511(d) of this Act.
       (3) Subsection (a)(3)(D) of section 2022 of the Homeland 
     Security Act of 2002, as added by section 101 of this Act.
       (4) Section 7215(d) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C. 123(d)).
       (5) Section 7209(b)(1)(C) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (8 U.S.C. 1185 note).
       (6) Section 804(c) of this Act.
       (7) Section 901(b) of this Act.
       (8) Section 1002(a) of this Act.
       (9) Title III of this Act.

     SEC. 2404. DEMONSTRATION PROJECT.

       (a) Demonstration Project Required.--Not later than 120 
     days after the date of enactment of this Act, the Secretary 
     of Homeland Security shall--
       (1) establish a demonstration project to conduct 
     demonstrations of security management systems that--
       (A) shall use a management system standards approach; and
       (B) may be integrated into quality, safety, environmental 
     and other internationally adopted management systems; and
       (2) enter into one or more agreements with a private sector 
     entity to conduct such demonstrations of security management 
     systems.
       (b) Security Management System Defined.--In this section, 
     the term `security management system' means a set of 
     guidelines that address the security assessment needs of 
     critical infrastructure and key resources that are consistent 
     with a set of generally accepted management standards 
     ratified and adopted by a standards making body.

     SEC. 2405. UNDER SECRETARY FOR MANAGEMENT OF DEPARTMENT OF 
                   HOMELAND SECURITY.

       (a) Responsibilities.--Section 701(a) of the Homeland 
     Security Act of 2002 (6 U.S.C. 341) is amended--
       (1) by inserting ``The Under Secretary for Management shall 
     serve as the Chief Management Officer and principal advisor 
     to the Secretary on matters related to the management of the 
     Department, including management integration and 
     transformation in support of homeland security operations and 
     programs.'' before ``The Secretary'';
       (2) by striking paragraph (7) and inserting the following:
       ``(7) Strategic management planning and annual performance 
     planning and identification and tracking of performance 
     measures relating to the responsibilities of the 
     Department.''; and
       (3) by striking paragraph (9), and inserting the following:
       ``(9) The management integration and transformation 
     process, as well as the transition process, to ensure an 
     efficient and orderly consolidation of functions and 
     personnel in the Department and transition, including--
       ``(A) the development of a management integration strategy 
     for the Department, and
       ``(B) before December 1 of any year in which a Presidential 
     election is held, the development of a transition and 
     succession plan, to be made available to the incoming 
     Secretary and Under Secretary for Management, to guide the 
     transition of management functions to a new 
     Administration.''.
       (b) Appointment and Evaluation.--Section 701 of the 
     Homeland Security Act of 2002 (6 U.S.C. 341), as amended by 
     subsection (a), is further amended by adding at the end the 
     following:
       ``(c) Appointment and Evaluation.--The Under Secretary for 
     Management shall--
       ``(1) be appointed by the President, by and with the advice 
     and consent of the Senate, from among persons who have--
       ``(A) extensive executive level leadership and management 
     experience in the public or private sector;
       ``(B) strong leadership skills;
       ``(C) a demonstrated ability to manage large and complex 
     organizations; and
       ``(D) a proven record in achieving positive operational 
     results;
       ``(2) enter into an annual performance agreement with the 
     Secretary that shall set forth measurable individual and 
     organizational goals; and

[[Page 20720]]

       ``(3) be subject to an annual performance evaluation by the 
     Secretary, who shall determine as part of each such 
     evaluation whether the Under Secretary for Management has 
     made satisfactory progress toward achieving the goals set out 
     in the performance agreement required under paragraph (2).''.
       (c) Deadline for Appointment; Incumbent.--
       (1) Deadline for appointment.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Homeland Security shall name an individual who meets the 
     qualifications of section 701 of the Homeland Security Act (6 
     U.S.C. 341), as amended by subsections (a) and (b), to serve 
     as the Under Secretary of Homeland Security for Management. 
     The Secretary may submit the name of the individual who 
     serves in the position of Under Secretary of Homeland 
     Security for Management on the date of enactment of this Act 
     together with a statement that informs the Congress that the 
     individual meets the qualifications of such section as so 
     amended.
       (2) Incumbent.--The incumbent serving as Under Secretary of 
     Homeland Security for Management on November 4, 2008, is 
     authorized to continue serving in that position until a 
     successor is confirmed, to ensure continuity in the 
     management functions of the Department.
       (d) Sense of Congress With Respect to Service of 
     Incumbents.--It is the sense of the Congress that the person 
     serving as Under Secretary of Homeland Security for 
     Management on the date on which a Presidential election is 
     held should be encouraged by the newly-elected President to 
     remain in office in a new Administration until such time as a 
     successor is confirmed by Congress.
       (e) Executive Schedule.--Section 5313 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to the Deputy Secretary of Homeland Security the following:
       ``Under Secretary of Homeland Security for Management.''.
       And the Senate agree to the same.
     Bennie G. Thompson,
     Loretta Sanchez,
     Norman Dicks,
     Jane Harman,
     Nita M. Lowey,
     Sheila Jackson-Lee,
     Donna M. Christensen,
     Bob Etheridge,
     James R. Langevin,
     Henry Cuellar,
     Al Green,
     Ed Perlmutter,
     Peter T. King,
     Mark Souder,
     Tom Davis,
     Daniel E. Lungren,
     Michael T. McCaul,
     Charles W. Dent,
     Ike Skelton,
     John M. Spratt, Jr,
     Jim Saxton,
     John D. Dingell,
     Edward J. Markey,
     Tom Lantos,
     Gary Ackerman,
     Ileana Ros-Lehtinen,
     John Conyers,
     Zoe Lofgren,
     Henry A. Waxman,
     Wm. Lacy Clay,
     Silvestre Reyes,
     Bud Cramer,
     Bart Gordon,
     David Wu,
     Peter A. DeFazio,
     John B. Larson,
                                Managers on the Part of the House,

     Joe Lieberman,
     Carl Levin,
     Daniel K. Akaka,
     Tom Carper,
     Mark Pryor,
     Chris Dodd,
     Daniel K. Inouye,
     Joe Biden,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       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. 1), to provide for 
     the implementation of the recommendations of the National 
     Commission on Terrorist Attacks Upon the United States, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                      Joint Explanatory Statement

                   TITLE I--HOMELAND SECURITY GRANTS

     Section 101. Homeland Security Grant Program
       Section 101 of the Conference Report amends the Homeland 
     Security Act to add a new Title XX, comprised of two 
     subtitles and including the following sections:

         Subtitle A--Grants to States and High-Risk Urban Areas

     Section 2001. Definitions
       Section 2001 of the House bill defines several terms that 
     are used in the title relevant to homeland security grants, 
     including ``Covered grant,'' ``Directly Eligible Tribe,'' 
     ``Elevations in the Threat Alert Level,'' ``First 
     Responder,'' ``Indian Tribe,'' ``Region,'' ``Terrorism 
     Preparedness,'' and ``Capabilities.''
       Section 2001 of the Senate bill is a comparable provision, 
     which defines ``Administrator,'' ``Combined Statistical 
     Area,'' ``Directly Eligible Tribe,'' ``Eligible Metropolitan 
     Area,'' ``Indian Tribe,'' ``Metropolitan Statistical Area,'' 
     ``National Special Security Event,'' ``Population,'' 
     ``Population Density,'' ``Target Capabilities,'' and ``Tribal 
     Government.''
       The Conference substitute adopts the Senate provision, as 
     modified. The provision defines the terms ``Administrator,'' 
     ``Appropriate Committees of Congress,'' ``Critical 
     Infrastructure Sectors,'' ``Directly Eligible Tribe,'' 
     ``Eligible Metropolitan Area,'' ``High-Risk Urban Area,'' 
     ``Indian Tribe,'' ``Metropolitan Statistical Area,'' 
     ``National Special Security Event,'' ``Population,'' 
     ``Population Density,'' ``Qualified Intelligence Analyst,'' 
     ``Target Capabilities,'' and ``Tribal Government.''
     Section 2002. Homeland Security Grant Programs
       Section 2002 of the House bill sets forth the first 
     responder grant programs at the Department that are covered 
     by the provisions in the title. These programs are the State 
     Homeland Security Grant Program, the Urban Area Security 
     Initiative, and the Law Enforcement Terrorism Prevention 
     Program. It specifically excludes the Assistance to 
     Firefighters Grant programs, the Emergency Management 
     Performance Grant program, and the Urban Search and Rescue 
     program.
       Section 2002 of the Senate bill authorizes the Secretary of 
     Homeland Security (the Secretary), acting through the 
     Administrator of the Federal Emergency Management Agency 
     (FEMA), to award grants to State, local, and tribal 
     governments. It clarifies that other grant programs, such as 
     the Assistance to Firefighters Grant programs, the 
     Metropolitan Medical Response System, critical infrastructure 
     grant programs, including transportation security grants 
     programs, the port security grant program, and grants 
     administered by agencies other than the Department of 
     Homeland Security (the Department or DHS), are not covered 
     under the title.
       The Conference substitute adopts the Senate provision, as 
     modified. It specifically authorizes the Secretary, acting 
     through the Administrator of FEMA (the Administrator), to 
     make grants under the State Homeland Security Grant Program 
     and the Urban Area Security Initiative. It specifically 
     provides that none of the provisions in subtitle A affect, or 
     may be construed to affect, programs authorized under the 
     Federal Fire Prevention and Control Act; grants authorized 
     under the Stafford Act; Emergency Management Performance 
     Grants under the amendments made by Title II of the 
     Implementing the Recommendations of the 9/11 Commission Act 
     of 2007; grants to protect critical infrastructure, including 
     port security grants authorized under 46 U.S.C. 70107 and 
     grants authorized under titles XIV, XV, and XVI of the 
     Implementing the Recommendations of the 9/11 Commission Act 
     of 2007; Metropolitan Medical Response System grants 
     authorized under section 635 of the Post-Katrina Emergency 
     Management Reform Act; the Interoperable Emergency 
     Communications Grant Program authorized under title XVIII of 
     the Homeland Security Act; and grants not administered by the 
     Department.
       Section 1014 of the USA Patriot Act (42 U.S.C. 3714), which 
     authorized grants to States to ``enhance the capability of 
     State and local jurisdictions to prepare for and respond to 
     terrorist acts,'' has, up until now, served as the authority 
     for grant programs such as the State Homeland Security Grant 
     Program and the Law Enforcement Terrorism Prevention Program. 
     Section 1014 further provided that each State receive a 
     minimum of 0.75 percent of such authorized grants. The 
     Conference substitute clarifies that the grants authorized 
     under sections 2003 and 2004 of the Homeland Security Act are 
     to supersede all grant programs authorized by section 1014 of 
     the USA PATRIOT Act and that such grants shall be governed by 
     the terms of this title and not any other provision of law, 
     including with respect to the minimum guaranteed to each 
     State under section 2004 and the fact that, where there is 
     such a minimum, it is to be allocated as a ``true minimum,'' 
     in the manner explained below.
       The Conferees remain concerned about the implementation of 
     the provisions in the Post-Katrina Emergency Management 
     Reform Act (PL 109-295), which placed the authority to 
     conduct training and exercises and administer grants within 
     FEMA, thus restoring the nexus between emergency preparedness 
     and response. The Conferees continue to believe that the 
     Administrator, in

[[Page 20721]]

      consultation with other relevant Departmental components 
     with issue-area expertise, should have responsibility for 
     administering all grant programs administered by the 
     Department, which will ensure the coordination among those 
     programs and consistency in the guidance issued to grant 
     recipients.
     Section 2003. Urban Area Security Initiative
       Section 2003 of the House bill provides that areas 
     determined by the Secretary to be high-threat urban areas may 
     apply for Urban Area Security Initiative grants.
       Section 2003 of the Senate bill specifically establishes 
     the Urban Area Security Initiative grant program, to assist 
     high-risk urban areas in preventing, preparing for, and 
     responding to acts of terrorism. It allows eligible 
     metropolitan areas, defined primarily as self-defined areas 
     within the 100 largest metropolitan statistical areas, to 
     apply for the grants. This section requires that the grants 
     be allocated based on the threat, vulnerability, and 
     consequences of a terrorist attack, as well as the 
     effectiveness of each urban area's proposed spending plan in 
     increasing the area's preparedness for terrorism and reducing 
     risk. The section further describes the allowable uses of the 
     grant funding by urban areas.
       The Conference substitute adopts the Senate provision, as 
     modified. The Conference substitute provides for a two-stage 
     process for designating high-risk urban areas eligible to 
     apply for Urban Area Security Initiative grants. First, the 
     Department is to conduct an initial assessment of the risks, 
     threats, and vulnerabilities from acts of terrorism faced by 
     eligible metropolitan areas, defined as the 100 most populous 
     metropolitan statistical areas in the United States. During 
     this initial assessment, these areas may submit relevant 
     information to the Department for consideration. Second, once 
     this initial assessment process is complete, the Department 
     will designate which jurisdictions may apply for Urban Area 
     Security Initiative grants based solely on the assessment of 
     risk from acts of terrorism.
     Section 2004. State Homeland Security Grant Program
       Section 2003 of the House bill provides that States, 
     regions, and directly eligible tribes shall be eligible to 
     apply for grant funds under the State Homeland Security Grant 
     Program and the Law Enforcement Terrorism Prevention Program. 
     Section 2004 of the House Bill sets forth minimum amounts 
     each State shall receive (0.25 percent), providing for larger 
     grant awards to applicants that have a significant 
     international land border and/or adjoin a body of water 
     within North America that contains an international boundary 
     line (0.45 percent). Under the House bill territories and 
     directly eligible tribes would receive not less than 0.08 
     percent of the funds.
       Section 2004 of the Senate bill establishes the State 
     Homeland Security Grant Program to assist State, local, and 
     tribal governments in preventing, preparing for, protecting 
     against, responding to, and recovering from acts of 
     terrorism. The section requires that the grants be allocated 
     to States based on the threat, vulnerability, and 
     consequences of terrorism faced by a State, and lists factors 
     to be considered in determining a State's risk. The section 
     further provides that, in allocating funds, no State shall 
     receive less than 0.45 percent of the overall appropriation 
     for this program and that each State distribute a minimum of 
     80 percent of funding received under this program to local 
     and tribal governments within that State, consistent with the 
     State's homeland security plan. Territories would receive not 
     less than 0.08 percent of the funds. The section also 
     describes the allowable uses for grant funding provided to 
     States under this section.
       The Conference substitute adopts the Senate provision, as 
     modified. The Conference substitute requires that each State 
     receive, from the funds appropriated for the State Homeland 
     Security Grant Program, not less than 0.375 percent of the 
     total funds appropriated for grants under sections 2003 and 
     2004 in Fiscal Year 2008. This minimum decreases to 0.35 
     percent over five years. Each territory is to receive not 
     less than 0.08 percent of the funds and tribes are to 
     receive, collectively, not less than 0.1 percent of the 
     funds.
       In all cases, the minimum is a ``true minimum,'' in which 
     funding allocations are initially determined entirely on the 
     basis of terrorism risk and the anticipated effectiveness of 
     the proposed use of the grant. Any recipient that does not 
     reach the minimum based on this risk allocation will receive 
     additional funding from the amount appropriated for the State 
     Homeland Security Grant Program to ensure the respective 
     minimum is met. This distribution method is consistent with 
     the Department's practice for FY 2007 for the formula grants 
     in the Homeland Security Grant Program, and maximizes the 
     share of funds distributed on the basis of risk. The Urban 
     Area Security Initiative will continue to be allocated 
     exclusively on the basis of the risk from acts of terrorism 
     and the anticipated effectiveness of the proposed use of the 
     grant.
     Section 2005. Grants to directly eligible tribes
       Section 2003 of the House bill authorizes the Secretary to 
     award grants to directly eligible tribes under the State 
     Homeland Security Grant Program, requires the designation of 
     a specific individual to serve as the tribal liaison for each 
     tribe, and allows an opportunity for each State to comment to 
     the Secretary on the consistency of a tribe's application 
     with the State's homeland security plan.
       Section 2004 of the Senate bill authorizes the Secretary to 
     award grants to directly eligible tribes under the State 
     Homeland Security Grant Program.
       The Conference substitute adopts the House provision, as 
     modified. The Conference substitute further clarifies that, 
     regardless of whether a tribe receives funds directly from 
     the Department, the tribe remains eligible to receive a pass-
     through of section 2004 funds for other purposes from any 
     State within which it is located, and that States retain a 
     responsibility for allocating funds received under section 
     2004 to assist tribal communities, including tribes that are 
     not directly eligible tribes, achieve target capabilities not 
     achieved through direct grants.
     Section 2006. Terrorism prevention
       There is no comparable House provision.
       Section 2005 of the Senate bill requires that the 
     Department of Homeland Security designate a minimum of 25 
     percent of the funding to States and urban areas through the 
     State Homeland Security Grant Program and Urban Area Security 
     Initiative for law enforcement terrorism prevention 
     activities. It provides a list of allowable uses for the 
     funding. The section also establishes the Office for the 
     Prevention of Terrorism within the Department to, among other 
     things, coordinate policy and operations between Federal, 
     State, local, and tribal governments related to the 
     prevention of terrorism.
       The Conference substitute adopts the Senate provision, as 
     modified.
       The Conferees note the importance of law enforcement 
     terrorism prevention activities and requires the 
     Administrator to ensure that not less than 25 percent of the 
     combined funds from the State Homeland Security Grant Program 
     and Urban Area Security Initiative are dedicated to these 
     vital activities. This will ensure that law enforcement 
     terrorism prevention activities are appropriately coordinated 
     with other State and high-risk urban area efforts to prevent, 
     prepare for, protect against, and respond to acts of 
     terrorism using grant funds.
       The Conference substitute also includes a provision 
     creating an Assistant Secretary in the DHS Policy Directorate 
     to head an Office for State and Local Law Enforcement. This 
     new Assistant Secretary will lead the coordination of 
     Department-wide policies relating to State and local law 
     enforcement's role in preventing acts of terrorism and will 
     also serve as a liaison between law enforcement agencies 
     across the country and the Department. The Conferees believe 
     this office gives the State and local law enforcement 
     community a much needed voice and high-level point of contact 
     in the Department and integrates prevention and other law 
     enforcement activities across the Department, while avoiding 
     the creation of further stovepipes.
       The Conference substitute creates the Assistant Secretary 
     in the Department's Policy Directorate because of that 
     Directorate's central role in coordinating policies across 
     the Department. By such placement, however, the Conferees do 
     not intend to preclude the Secretary from seeking advice 
     directly from the Assistant Secretary, or from having the 
     Assistant Secretary report directly to the Secretary, if the 
     Secretary determines that arrangement would be most helpful 
     and/or most beneficial to the Department.
       In addition, the Conference substitute includes language in 
     this section to reflect the general purpose of the Fusion and 
     Law Enforcement Education and Teaming (FLEET) Grant Program 
     in House Sections 701 and 702. Many local and tribal law 
     enforcement and other emergency response providers that would 
     like to participate in State, local, or regional fusion 
     centers lack the resources--in terms of funding and staff--to 
     do so. These providers are not usually in the headlines; 
     instead, they typically serve under represented suburban and 
     rural jurisdictions where terrorists may live, work, and plan 
     attacks--even if they themselves are not likely targets of 
     those attacks.
       The Conferees believe that such agencies and departments, 
     based on an appropriate showing of risk, should qualify for 
     grant funding so they can send representatives to State, 
     local, or regional fusion centers. Such funding should be 
     available for (1) backfilling positions for law enforcement 
     officers, intelligence analysts, and other emergency response 
     staff detailed to fusion centers; and (2) appropriate 
     training in the intelligence cycle, privacy and civil 
     liberties, and other relevant matters, as determined by the 
     Secretary.
       The Conference substitute also provides for the Assistant 
     Secretary for State and Local Law Enforcement and the 
     Administrator to jointly conduct a study to determine the 
     efficacy and feasibility of establishing specialized law 
     enforcement deployment teams to assist State, local and 
     tribal governments in responding to natural disasters, acts 
     of terrorism, or other man-made disasters, and to

[[Page 20722]]

     report on the results of that study to the appropriate 
     Committees of Congress. By requiring the study, the Conferees 
     do not intend to authorize the creation, use or deployment of 
     such teams, but instead intends that the Assistant Secretary 
     and the Administrator report to Congress on the results of 
     the study and, in the event they determine that such 
     deployment teams are feasible and likely to be effective, 
     that they seek further Congressional authorization before 
     implementing any such program. The Conferees further intend 
     that any such deployment teams, if implemented, would, like 
     other specialized response teams, such as Urban Search and 
     Rescue Teams, be subject to the direction of the 
     Administrator and coordinated with the other activities of 
     FEMA.
     Section 2007. Prioritization
       Section 2004 of the House bill requires the Secretary to 
     evaluate and annually prioritize pending applications for 
     covered grants based upon the degree to which they would 
     lessen the threat to, vulnerability of, and consequences for 
     persons and critical infrastructure from acts of terrorism.
       There is no comparable Senate provision. Instead the Senate 
     bill individually lists the factors that the Administrator 
     shall consider when allocating grants under sections 2003 and 
     2004.
       The Conference substitute adopts the House provision, as 
     modified. The Conference substitute requires that in 
     allocating funds among States and high-risk urban areas the 
     Administrator consider for each State and high-risk urban 
     area, its relative threat, vulnerability, and consequences 
     from acts of terrorism, including consideration of several 
     enumerated factors; and the anticipated effectiveness of the 
     proposed use of the grant by the State or high-risk urban 
     area. While the Conference substitute does not specify the 
     particular weight to be given to any of the listed criteria, 
     it nonetheless requires that each of the characteristics 
     listed in subparagraphs 2007(a)(1)(A) through (J) be 
     considered as part of the assessment of threat, 
     vulnerability, and consequences from acts of terrorism faced 
     by the State or high-risk urban area. The Conference 
     substitute also provides that the Administrator may consider 
     additional factors beyond those listed, as specified in 
     writing, in assessing a State or high-risk urban area's risk.
     Section 2008. Use of funds
       Section 2005 of the House bill lists authorized uses of 
     covered grants and prohibits the use of grant funds to 
     supplant State or local funds, to construct physical 
     facilities, to acquire land, or for any State or local 
     government cost sharing contribution. This section also 
     requires each covered grant recipient to submit annual 
     reports on homeland security spending and establishes 
     penalties for States that fail to pass funds through to local 
     governments within 45 days of receipt of grant funds.
       There is no comparable Senate provision. Instead, the 
     Senate bill authorizes eligible uses of funds for each grant 
     program individually and provides for limitations on the use 
     of grant funds under Section 2007 of the Senate bill.
       The Conference substitute adopts the House provision, with 
     modifications. The Conference substitute authorizes grant 
     funds under sections 2003 and 2004 to be used for a number of 
     uses including planning, training, exercises, protecting 
     critical infrastructure, purchasing equipment, and paying 
     personnel costs associated with both straight time and 
     overtime and backfill, in addition to any allowable use in 
     the FY2007 grant guidance for the State Homeland Security 
     Grant Program, the Urban Area Security Initiative (including 
     activities permitted under the full-time counterterrorism 
     staffing pilot), or the Law Enforcement Terrorism Prevention 
     Program. The Conference substitute authorizes grant 
     recipients to use up to 50 percent of their grant funds for 
     overtime and straight personnel costs because prevention and 
     protection activities are personnel intensive. Nonetheless, 
     the needs of communities vary considerably, and the Conferees 
     anticipate that many, if not most, recipients will not need 
     to devote the maximum allowable funding to personnel costs. 
     The Conferees encourage grant recipients to also emphasize 
     planning, training, and exercising in their spending plans.
       It is important to note that the Conferees are concerned 
     about audits and news reports illustrating some inappropriate 
     uses of grant funds since the programs' inception. The 
     Conferees, therefore, emphasize language in the Conference 
     substitute that prohibits grant recipients from using their 
     funding for social and recreational purposes.
       Finally, the Conferees note the provision permitting grant 
     recipients to use their funding for multiple purposes. To be 
     clear, the Conferees do not intend for grant recipients to 
     use their funding solely to prepare for natural disasters. 
     The programs authorized in this title are for counter-
     terrorism purposes. Nevertheless, the Conferees recognize 
     that many of the planning, training, exercising, and 
     equipment needs of jurisdictions are similar, if not 
     identical, for natural disasters, acts of terrorism, and 
     other man-made disasters, and that, although some 
     preparations for terrorist threats require unique plans and 
     capabilities, many will be part of overall all-hazards 
     preparedness. Therefore, although the use of grant funds 
     under these programs must further a jurisdiction's counter-
     terrorism activities and programs, the Conferees expect and 
     encourage such jurisdictions to engage in activities, such as 
     evacuation exercises, that will contribute to preparedness 
     for both terrorist and non-terrorist events and not to 
     hesitate to use, for example, equipment purchased for 
     counter-terrorism purposes to respond to a non-terrorist 
     incident.

                   Subtitle B--Grants Administration

     Section 2021. Administration and coordination
       There is no comparable House provision.
       Section 2007 of the Senate bill requires the Administrator 
     to ensure that the recipients of grants administered by the 
     Department coordinate their activities regionally, including 
     across State boundaries where appropriate, and that State and 
     urban recipients establish a planning committee including 
     relevant stakeholders to assist in the preparation and 
     revision of area homeland security plans. This section also 
     requires that the Department coordinate with other relevant 
     Federal agencies to develop a proposal to coordinate the 
     reporting and other requirements for homeland security 
     assistance programs across the Federal government to avoid 
     duplication and undue burdens on State, local, and tribal 
     governments.
       The Conference substitute adopts the Senate provision, as 
     modified.
       The Conference substitute includes a provision requiring 
     States and high-risk urban areas receiving grants under the 
     State Homeland Security Grant Program or the Urban Area 
     Security Initiative to establish a planning committee if they 
     have not already done so. The Conferees are aware that many 
     multi-jurisdictional councils of governments, regional 
     planning commissions and organizations, development 
     districts, and consortiums have responsibility for 
     implementing emergency response plans and coordinating cross-
     jurisdictional response capabilities, and urges the 
     Department to support the continued use of such entities.
       Because natural disasters, acts of terrorism and other man-
     made disasters do not respect political boundaries, and 
     because such events have the potential to overwhelm the 
     capabilities of a single jurisdiction, the Conferees believe 
     that it is important that there be regional coordination in 
     preparing for these events, and the Conference substitute 
     requires that the Administrator ensure that grant recipients 
     appropriately coordinate with neighboring State, local and 
     tribal governments. The Conference does not intend, however, 
     that this provide a license to the Administrator to impose 
     burdensome requirements on local subgrantees or other small 
     communities, and encourages the Administrator to ensure 
     regional coordination primarily by working with States, high-
     risk urban areas, and other direct recipients of grants.
     Section 2022. Accountability
       Section 2005 of the House bill requires recipients of 
     grants under the State Homeland Security Grant Program, Urban 
     Area Security Initiative, and Law Enforcement Terrorism 
     Prevention Program to submit an annual report to the 
     Secretary concerning the use and allocation of those grant 
     funds, and provides incentives for submission of quarterly 
     reports. It also requires that the Secretary submit an annual 
     report to Congress concerning the use of funds by grant 
     recipients and describing progress made in enhancing 
     capabilities as a result of the expenditure of grant funds.
       Section 2008 of the Senate bill requires the Administrator 
     to submit annual reports to Congress evaluating the extent to 
     which grants have contributed to the progress of State, 
     local, and tribal governments in achieving target 
     capabilities and providing an explanation of the Department's 
     risk methodology. In addition, Section 2009 of the Senate 
     bill requires the Inspector General of the Department (the 
     Inspector General) to audit all recipients of grants under 
     the State Homeland Security Grant Program, Urban Area 
     Security Initiative, and Emergency Management Performance 
     Grant program. The audits are to be conducted within two 
     years of enactment of the bill or receipt of such a grant, 
     and be made publicly available on the website of the 
     Inspector General. The Inspector General is also required to 
     audit each entity that received a preparedness grant from the 
     Department prior to enactment of this legislation.
       The Conference substitute adopts the Senate provision, as 
     modified. Among other things, the Conference substitute 
     requires that at least every two years, the Administrator 
     conduct a programmatic and financial review of each State and 
     high-risk urban area receiving a grant administered by the 
     Department to examine whether grant funds are being used 
     properly and effectively. It requires further that the 
     Inspector General follow up these agency reviews by 
     conducting independent audits of a sample of States and high-
     risk urban areas each year. The Inspector General is to 
     conduct an audit of all States at least once over the next 
     seven years, report to Congress on any findings, and post the 
     results of the audits on the Internet, taking steps to 
     protect classified and other sensitive information. The 
     Conference substitute authorizes additional

[[Page 20723]]

     funding to help ensure that the Administrator and the Office 
     of the Inspector General are able to carry out these 
     oversight and auditing functions. In addition, the Conference 
     substitute requires the submission of quarterly and annual 
     reports by grant recipients.
       While the Conference acknowledges the importance of 
     transparency and therefore requires the public online posting 
     of audits in this section, the Conference substitute exempts 
     any audit information from being released publicly that 
     contains ``sensitive'' information. The Conference emphasizes 
     that the sensitive information referred to in this provision 
     is information that, while it may not be classified, would be 
     detrimental to national security if made public, such as 
     information designated as Sensitive Security Information. The 
     Conference emphasizes therefore that the term ``sensitive 
     information,'' and the associated exemption from public 
     disclosure, does not apply to information which a grantee or 
     the Department may simply find embarrassing, questionable, 
     unlawful, or otherwise suggestive of poor management or 
     judgment. That an audit contains sensitive information should 
     not be cause to withhold the entire audit from public 
     release, but rather the Conference expects that such 
     information would merely be redacted from posted audits.
     Section 102. Other Amendments to the Homeland Security Act of 
         2002
       Section 2004(a)(1) of the House bill includes a provision 
     requiring the Secretary to coordinate with the National 
     Advisory Council and other components of the Department when 
     evaluating and prioritizing grant applications.
       Section 2007 of the Senate bill requires that the 
     Administrator regularly consult and work with the National 
     Advisory Council, an advisory panel of State, local, tribal, 
     private and nonprofit officials established under Section 508 
     of the Homeland Security Act, on the administration and 
     assessment of the Department's grant programs, in order to 
     ensure regular and continuing input from State, local and 
     tribal governments and emergency response providers and 
     better integration of these parties into the grants process.
       The Conference substitute adopts the Senate provision, as 
     modified.
     Section 103. Amendments to the Post-Katrina Emergency 
         Management Reform Act of 2006
       Section 2005(h)(5)(E) of the House bill requires that each 
     recipient of a covered grant include in its annual report to 
     the Secretary, information on the extent to which 
     capabilities identified in the applicable State homeland 
     security plan or plans remain unmet.
       Section 2008(a)(1) of the Senate bill requires that, as a 
     component of the annual Federal Preparedness Report required 
     under section 652 of the Post-Katrina Emergency Management 
     Reform Act, the Administrator report to Congress on the 
     extent to which grants administered by the Department have 
     contributed to State, local and tribal governments achieving 
     target capabilities and have led to the reduction of risk.
       The Conference substitute adopts the Senate provision, as 
     modified. Section 103 of the substitute amends section 652 of 
     the Post-Katrina Emergency Management Reform Act to require 
     that the Administrator conduct an evaluation of the efficacy 
     of Department grants in helping States, localities, and 
     tribes achieve target capabilities and in reducing risk and 
     to require States to report on the extent to which their 
     target capabilities remain unmet and assess the resources 
     needed to meet preparedness priorities.
     Section 104. Technical and conforming amendments
       Section 104 makes technical and conforming amendments to 
     the Homeland Security Act of 2002, consistent with those made 
     in section 204 of the Senate bill and paragraphs (a)(1)-(4) 
     of Section 101 of the House bill.

           TITLE II--EMERGENCY MANAGEMENT PERFORMANCE GRANTS

       There is no comparable House provision.
       Title IV of the Senate bill reauthorizes the Emergency 
     Management Performance Grants (EMPG) Program. In the Senate 
     bill, the program provides grants to States to assist State, 
     local and tribal governments in preparing for, responding to, 
     recovering from, and mitigating against all hazards. The 
     section codifies the existing allocation formula for EMPG 
     grants in which each State receives 0.75 percent of the total 
     appropriation for this program, with the remainder of the 
     appropriated funding distributed to States in proportion to 
     their population. The Senate bill also specifies allowable 
     uses for EMPG grants, and continues the existing cost-sharing 
     requirement, whereby the Federal share of an activity's cost 
     may not exceed 50 percent.
       The Conference substitute adopts the Senate provision, with 
     modifications. Section 201 of this title directs the 
     Administrator to continue implementation of an Emergency 
     Management Performance Grants program, the nation's principal 
     grant program to assist State, local, and tribal governments 
     in preparing for all hazards. The Conference substitute 
     continues this program, as authorized by the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, and 
     authorizes appropriations for the program through FY 2012. 
     Section 202 of this title amends section 614 of the Stafford 
     Act, concerning the Federal share for construction of 
     Emergency Operations Centers (EOCs). Section 202 allows the 
     Federal Government to finance up to 75 percent of the costs 
     of equipping, upgrading, and constructing State or local 
     EOCs. While equipping, upgrading, and constructing EOCs are 
     eligible activities under the EMPG program, these also remain 
     eligible activities under other provisions of Title VI of the 
     Stafford Act, and section 202 applies the maximum 75 percent 
     Federal cost share to the EMPG program and to any other 
     program authorized under Title VI of the Stafford Act that 
     provides grants for construction of EOCs.

      TITLE III--INTEROPERABLE COMMUNICATIONS FOR FIRST RESPONDERS

     Section 301. Interoperable Emergency Communications Grant 
         Program
       Section 201 of the House bill amends Title V of the 
     Homeland Security Act of 2002 by creating a stand-alone 
     interoperability grant program at the Department of Homeland 
     Security (the Department or DHS). This provision directs the 
     Secretary of Homeland Security (the Secretary), acting 
     through the Office of Grants and Training, in coordination 
     with the Director of Emergency Communications, to establish 
     the Improved Communications for Emergency Response (ICER) 
     grant program to improve emergency communications among 
     State, regional, national, and, in some instances, 
     international border communities. The provision provides that 
     the ICER grant program would be established the first fiscal 
     year after the Department met the following requirements: the 
     completion of and delivery to Congress of the National 
     Emergency Communications Plan; the completion of the baseline 
     interoperability assessment, and the determination by the 
     Secretary that substantial progress has been made with regard 
     to emergency communications equipment and technology 
     standards. Further, the provision states that the ICER grants 
     may be used for planning, design and engineering, training 
     and exercises, technical assistance, and other emergency 
     communications activities deemed integral to emergency 
     interoperable communications by the Secretary.
       Section 301 of the Senate bill amends Title XVIII of the 
     Homeland Security Act of 2002 by creating a grant program 
     administered by the Federal Emergency Management Agency 
     (FEMA) dedicated to improving operable and interoperable 
     emergency communications at local, regional, State, Federal 
     and, where appropriate, international levels. In applying for 
     the grants, States would have to demonstrate that the grants 
     would be used in a manner consistent with their Statewide 
     interoperability plans and the National Emergency 
     Communications Plan. The States would be required to pass at 
     least 80 percent of the total amount of the grants they 
     receive, or the functional equivalent, to local and tribal 
     governments. Section 301 requires that each State receive not 
     less than 0.75 percent of the total funds appropriated for 
     the grant program in any given year. Further, Section 301 
     authorizes $3.3 billion for the grant program for the first 
     five years: $400 million in Fiscal Year 2008; $500 million in 
     Fiscal Year 2009; $600 million in Fiscal Year 2010; $800 
     million in Fiscal Year 2011; and $1 billion in Fiscal Year 
     2012.
       The Conference substitute adopts the Senate provision by 
     amending Title XVIII of the Homeland Security Act to require 
     that the Secretary establish the Interoperable Communications 
     Grant Program to make the grants to States. The Conference 
     Report clarifies the Senate's all-hazards approach for the 
     use of the grants by stating that the grants should be used 
     to carry out initiatives to improve ``interoperable emergency 
     communications, including the collective response to natural 
     disasters, acts of terrorism, and other man-made disasters.''
       The Conference substitute clarifies that the Office of 
     Emergency Communications is responsible for ensuring that the 
     grants awarded under this section are consistent with the 
     policies established by the Office of Emergency 
     Communications in accord with its statutory authority and 
     that the activities funded by the grants must be consistent 
     with the Statewide interoperable communications plans and 
     comply with the National Emergency Communication Plan, when 
     completed. The Conference substitute further makes clear that 
     FEMA will administer the grant program pursuant to its 
     responsibilities and authorities under law. It is the intent 
     of the Conferees that FEMA administer the grant program in a 
     manner that is consistent with the policies established by 
     the Office of Emergency Communications. FEMA shall provide 
     applicants a reasonable opportunity to correct defects in the 
     application, if any, before making final awards.
       The Conference substitute modifies the House and Senate 
     provisions to clarify that the grants administered under this 
     section shall be used for activities determined by the 
     Secretary of the Department to be integral to interoperable 
     communications. Because of a concern about the potential for 
     fraud, waste, and abuse, the Conferees expect the Department 
     to institute aggressive oversight and accountability measures 
     to ensure that

[[Page 20724]]

     grantees under this section use the funds in a manner that 
     advances the standards outlined in the SAFECOM 
     interoperability continuum, including but not limited to 
     governance, standard operating procedures, technology, 
     training and exercises, and usage. Moreover, the Conference 
     substitute states that recipients of grant funds under this 
     program are prohibited from using grants for recreational or 
     social purposes. Nor may grantees use these funds to supplant 
     State or local funds, or to meet cost-sharing contributions. 
     The Conference substitute gives the Secretary clear authority 
     to take ``such actions as necessary'' to ensure that the 
     grant funds are being used for their intended purpose.
       Grants awarded pursuant to the Interoperable Emergency 
     Communications Grant Program may be used for operable 
     communications--the ability of emergency response providers 
     and relevant government officials to continue to communicate 
     in the event of natural disasters, acts of terrorism, and 
     other man-made disasters--if the Director of Emergency 
     Communications reports to the Secretary of the Department of 
     Homeland Security that a national baseline level of 
     interoperability has been achieved, or if the Director of 
     Emergency Communications finds that an applicant's specific 
     request for grant funds for operability is critical and 
     necessary to achieve interoperability.
       The Conference substitute requires that before a State may 
     receive a grant under this section, the Director of the 
     Office of Emergency Communications shall approve the State's 
     statewide interoperable communications plan required under 
     section 7303(f) of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. Sec. 194(f)). The Conferees 
     intend it to be the responsibility of the Director of 
     Emergency Communications to ensure that the State-wide 
     interoperability plans are designed to advance 
     interoperability at all levels of government, consider 
     applicable local and regional plans, and comply with the 
     National Emergency Communications Plan, when complete. The 
     Conference substitute provides that each State that receives 
     a grant under this section shall certify that the grant is 
     used for the intended purposes of the grant program.
       The Conferees agreed to remove the Senate provision related 
     to a review board to assist in reviewing the grant 
     applications since the Department has entrusted that 
     responsibility to peer review groups made of emergency 
     communication experts.
       The Conference substitute reflects the agreed-upon 
     authorization of $1.6 billion for the grant program under 
     this section which shall be allocated over five fiscal years 
     beginning in Fiscal Year 2008, after the completion of the 
     National Emergency Communications Plan and its submission to 
     Congress. The Conference substitute authorizes such sums as 
     necessary for each fiscal year following the initial five 
     year period. The Conferees agree that to ensure that grants 
     are spent on effective measures to improve interoperability, 
     the Secretary may not award a grant under this section for 
     the purchase of equipment that does not meet applicable 
     voluntary consensus standards, to the extent that such 
     standards exist, unless the State demonstrates a compelling 
     reason. The Conference substitute adopts the Senate 
     provision, with modifications, that States receiving a grant 
     under this section shall pass through 80 percent of the grant 
     funds, or the functional equivalent, to local and tribal 
     governments. The Conference substitute prohibits States from 
     imposing unreasonable or unduly burdensome requirements on 
     tribal governments as a condition of providing grant funds or 
     resources.
       The Conference substitute outlines the funding formula for 
     the distribution of grant dollars to ensure that each State 
     receives a minimum of funds for each fiscal year as follows: 
     0.50 percent for Fiscal Year 2008; 0.50 percent for Fiscal 
     Year 2009; 0.45 percent for Fiscal Year 2010; 0.40 percent 
     for Fiscal Year 2011; and 0.35 percent for Fiscal Year 2012 
     and each subsequent fiscal year. The territories of the 
     United States are to receive no less than 0.08 percent of the 
     total amount appropriated for grants under this title for 
     each fiscal year.
       The Conference substitute modifies the Senate's provision 
     regarding the annual reporting requirement of States that 
     receive grants. Reports to the Office of Emergency 
     Communications shall be made publicly available, subject to 
     redactions necessary to protect classified or other sensitive 
     information. The Conference substitute requires that the 
     Office of Emergency Communications submit to Congress an 
     annual report detailing how the grants under this section 
     facilitate the implementation of the Statewide 
     interoperability plans and advance interoperability at all 
     levels of government.
     Section 302. Border interoperability demonstration project
       There is no comparable House provision.
       Section 302 of the Senate bill establishes an international 
     border demonstration project involving at least six pilot 
     projects aimed at improving interoperability along the U.S.-
     Canada and U.S.-Mexico borders.
       The Conference substitute adopts the Senate provision, with 
     modifications. The Senate provision establishes in the 
     Department the International Border Community Interoperable 
     Communications Demonstration Project. The Conference has 
     agreed that the demonstration project will be carried out by 
     the Office of Emergency Communications at the Department in 
     coordination with the Federal Communications Commission and 
     the Department of Commerce. The Conference directs that the 
     demonstration project may only proceed after the Federal 
     Communications Commission and the Department of Commerce have 
     agreed upon the availability of the necessary spectrum 
     resulting from the 800 megahertz rebanding process in the 
     affected border areas.
       The Conference substitute directs the Office of Emergency 
     Communications to foster local and tribal, State and Federal 
     interoperable communications in those communities selected 
     for demonstration projects. The Office of Emergency 
     Communications is also directed to identify solutions to 
     facilitate interoperable communications across the national 
     borders, provide technical assistance, and ensure the 
     emergency responders can communicate in the event of natural 
     disasters, acts of terrorism, and other man-made disasters. 
     The Conference agrees that the Director of the Office of 
     Emergency Communications shall receive a report from each 
     State receiving funds under this section within 90 days of 
     receiving the funds. The Conference substitute specifies that 
     the Director may not fund a demonstration project for more 
     than three years.

                   TITLE IV--INCIDENT COMMAND SYSTEM

     Section 401. Definitions
       There is no comparable House provision.
       Section 1002 of the Senate bill includes several 
     definitions relevant to credentialing and typing.
       The Conference substitute adopts the Senate provision with 
     minor modifications.
     Section 402. National exercise program design
       Section 301 of the House bill strengthens the design of the 
     national exercise program to require the program to enhance 
     the use and understanding of the Incident Command System 
     (ICS).
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 403. National exercise program model exercises
       Section 302 of the House bill strengthens the national 
     exercise program to enhance the use and understanding of ICS 
     by requiring that the national exercise program include model 
     exercises for use by State, local and tribal governments.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision with 
     minor modifications.
     Section 404. Preidentifying and evaluating 
         multijurisdictional facilities to strengthen incident 
         command; private sector preparedness.
       Section 1001 of the Senate bill and section 303 of the 
     House bill both contain language making it a responsibility 
     of the Federal Emergency Management Agency (FEMA) regional 
     directors to work with State and local governments to pre-
     identify sites where multi-jurisdictional incident command 
     can be established. Additionally, section 1001 of the Senate 
     bill creates a responsibility for FEMA regional directors to 
     coordinate with the private sector to ensure private sector 
     preparedness.
       The Conference substitute adopts these provisions.
     Section 405. Federal response capability inventory
       There is no comparable House provision.
       Section 1002 of the Senate bill establishes a database of 
     all Federal personnel and resources credentialed and typed 
     that are likely needed to respond to a natural disaster, act 
     of terrorism, or other man-made disaster.
       The Conference substitute adopts the Senate provision with 
     modifications integrating it into the Federal Response 
     Capability Inventory established by the Post-Katrina 
     Emergency Management Reform Act of 2006.
     Section 406. Reporting requirements
       There is no comparable House provision.
       Section 1002 of the Senate bill requires an annual report 
     to the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Homeland Security 
     of the House of Representatives detailing the number and 
     qualifications of Federal personnel trained and ready to 
     respond to a natural disaster, act of terrorism or other man-
     made disaster. This section also requires the Administrator 
     to evaluate whether the list of credentialed FEMA personnel 
     complies with the strategic human capital plan established by 
     the Post-Katrina Emergency Management Reform Act of 2006.
       The Conference substitute adopts the Senate provision with 
     modifications which integrate the provisions into the 
     reporting requirements of the Post-Katrina Emergency 
     Management Reform Act of 2006.
     Section 407. Federal preparedness
       There is no comparable House provision.
       A critical component of any incident command system is the 
     use of common terminology for disaster response resources to 
     ensure the correct resources are deployed to and used in an 
     incident. Credentialing and typing involves using a common 
     naming system to classify the capabilities or attributes

[[Page 20725]]

     of personnel and equipment, and is a fundamental part of the 
     ICS. In order to fully implement ICS, section 1002 of the 
     Senate bill requires DHS to establish standards for 
     credentialing and typing personnel and other assets likely to 
     be used to respond to disasters.
       The Conference substitute adopts the Senate provision with 
     modifications, amending the Post-Katrina Emergency Management 
     Act to clarify that the typing and credentialing provisions 
     will be used to enhance our national preparedness system. The 
     Conference agrees that the typing and credentialing 
     provisions are an essential part of enhancing our national 
     preparedness system and that once completed, such data must 
     be regularly updated so that an inventory of available 
     resources is available to the Administrator of FEMA to aid in 
     preparing for and responding to disasters.
     Section 408. Credentialing and typing
       There is no comparable House provision.
       Section 1002 of the Senate bill requires DHS to establish 
     standards for credentialing and typing personnel and other 
     assets likely to be used to respond to disasters. Once the 
     standards have been developed, the language requires DHS and 
     other Federal agencies with responsibilities under the 
     National Response Plan to type, credential, and inventory 
     personnel and resources likely to be used in disaster 
     response, to allow FEMA to be able to effectively coordinate 
     the deployment and use of Federal resources in disaster 
     response. The Senate bill also directs FEMA to distribute 
     standards to Federal agencies with responsibilities under the 
     National Response Plan, and State and local governments.
       The Conference substitute adopts the Senate provisions with 
     some modifications, requiring Federal agencies to credential 
     and type incident management personnel, emergency response 
     providers, and other personnel (including temporary 
     personnel) and resources likely needed to respond to a 
     disaster. The Conference substitute also requires the 
     Administrator of FEMA to distribute standards and detailed 
     written guidance to Federal, State, local, and tribal 
     governments that may be used by such governments to 
     credential and type incident management personnel, emergency 
     response providers, and other personnel (including temporary 
     personnel) and other resources likely needed to respond to 
     disasters.
     Section 409. Model standards and guidelines for critical 
         infrastructure workers
       There is no comparable House provision.
       Section 1002 of the Senate bill requires FEMA, working with 
     Federal, State, local, and tribal governments, and the 
     private-sector to establish model standards and guidelines 
     for credentialing critical infrastructure workers that may be 
     used by a State to credential critical infrastructure workers 
     that may respond to disasters.
       The Conference substitute adopts the Senate language with 
     minor modifications. The Conference notes that responsibility 
     and authority for access of critical infrastructure workers 
     to disaster sites generally resides with State and local 
     governments, except in limited circumstances, and that this 
     section does not alter those responsibilities and 
     authorities.
     Section 410. Authorization of appropriations
       There is no comparable House provision.
       Section 1002 of the Senate bill authorizes the 
     appropriation of such sums as necessary to carry out the 
     section.
       The Conference substitute adopts the Senate language with 
     minor modifications.

  TITLE V--IMPROVING INTELLIGENCE AND INFORMATION SHARING WITHIN THE 
    FEDERAL GOVERNMENT AND WITH STATE, LOCAL, AND TRIBAL GOVERNMENTS

     Section 501. Homeland security information sharing
       Section 723 of the House bill includes several provisions 
     to improve homeland security information sharing. Among other 
     things, it directs the Secretary of Homeland Security (the 
     Secretary), acting through the Under Secretary for 
     Intelligence and Analysis, to establish a comprehensive 
     information technology network architecture for the 
     Department of Homeland Security's (the Department or DHS) 
     Office of Intelligence and Analysis; requires the Secretary 
     to submit an implementation plan and progress report to 
     Congress in order to monitor the development of that 
     architecture; and encourages its developers to adopt the 
     functions, methods, policies, and network qualities 
     recommended by the Markle Foundation.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     modifications. It deletes the reference to an implementation 
     plan for the comprehensive information technology network 
     architecture and instead includes new text to reflect the 
     purpose of that architecture: to connect the various 
     databases and related information technology assets of the 
     Office of Intelligence and Analysis and the intelligence 
     components of the Department in order to promote internal 
     information sharing within the Department. The Conference 
     substitute likewise deletes references to the Markle 
     Foundation. The Conference nevertheless concurs that the 
     architecture in question should, to the extent possible, 
     incorporate the approaches, features, and functions of the 
     information sharing network proposed by the Markle Foundation 
     in reports issued in October 2002 and December 2003, known as 
     the System-wide Homeland Security Analysis and Resource 
     Exchange (SHARE) Network.
       The Conference substitute also directs the Secretary to 
     designate ``Information Sharing and Knowledge Management 
     Officers'' within each intelligence component to coordinate 
     information sharing efforts and assist the Secretary with the 
     development of feedback mechanisms to State, local, tribal, 
     and private sector entities. The Conference concurs that the 
     Department's outreach to State, local, and tribal 
     intelligence and law enforcement officials has been haphazard 
     and often accompanied by less than timely results. While it 
     can point to many successful examples of coordination and 
     collaboration with State, local, tribal, and private sector 
     officials, the Office of Intelligence and Analysis must 
     increase its involvement with them and appropriately 
     incorporate their non-Federal information into the 
     Department's intelligence products. In addition, it is 
     essential that the Department provide feedback to these non-
     Federal partners--both to encourage their contributions going 
     forward and to provide helpful guidance for future 
     contributions. The information sharing and knowledge 
     management officers under this section should play a key role 
     in helping to address these gaps.
     Section 502. Intelligence component defined
       Section 723 of the House bill defines ``intelligence 
     component of the Department'' as ``any directorate, agency, 
     or element of the Department that gathers, receives, 
     analyzes, produces, or disseminates homeland security 
     information'' except: (1) ``a directorate, agency, or element 
     of the Department that is required to be maintained as a 
     distinct entity'' under the Homeland Security Act of 2002 (6 
     U.S.C. 101); and (2) ``any personnel security, physical 
     security, document security, or communications security 
     program within any directorate, agency, or element of the 
     Department.''
       Although Section 111 of the Senate bill includes a similar 
     definition for ``intelligence component of the Department,'' 
     it does not include either of the two exceptions enumerated 
     by the House provision.
       The Conference substitute adopts the House provision, with 
     modifications. In order to capture all of the intelligence 
     information being gathered, received, analyzed, produced, or 
     disseminated that might qualify an element or entity of the 
     Department as an ``intelligence component,'' the Conference 
     has chosen to refer to that universe of information as 
     ``intelligence information within the scope of the 
     information sharing environment, including homeland security 
     information, terrorism information, and weapons of mass 
     destruction information, or national intelligence . . .'' 
     This phrase appears numerous times throughout the Conference 
     substitute.
       The Conference is aware that the Conference substitute 
     defines ``terrorism information'' to include ``weapons of 
     mass destruction information'' in section 504 of the 
     Conference substitute. The Conference, nevertheless, has 
     included both terms when describing ``intelligence 
     information within the scope of the information sharing 
     environment'' for illustrative purposes. This phrase should 
     not be interpreted to give the term ``weapons of mass 
     destruction information'' any meaning other than the 
     definition for it provided in section 504 of the Conference 
     substitute.
       The Conference substitute establishes the position of Under 
     Secretary for Intelligence and Analysis to replace the 
     Assistant Secretary for Information Analysis, commonly known 
     as the Department's Chief Intelligence Officer. The Under 
     Secretary shall also serve as the Department's Chief 
     Intelligence Officer. Through the Secretary, the Under 
     Secretary shall be given new responsibilities, in addition to 
     those of the Assistant Secretary for Information Analysis, in 
     order to drive a common intelligence mission at the 
     Department that involves the full participation of the 
     Department's intelligence components.
       The Conference substitute carves out the United States 
     Secret Service from the definition of ``intelligence 
     component of the Department'' entirely. Subsection (b) 
     nevertheless would require that the Secret Service share all 
     homeland security information, terrorism information, weapons 
     of mass destruction information, national intelligence, or 
     suspect information obtained in criminal investigations with 
     the Under Secretary for Intelligence and Analysis. In 
     addition, the United States Secret Service will cooperate 
     with the Under Secretary concerning information sharing and 
     information technology activities outlined in sections 204 
     and 205 of the Homeland Security Act of 2002. The Conference 
     also expects that the Secret Service will provide training 
     and guidance to its employees, officials, and senior 
     executives in a manner that is comparable to the training 
     provided to intelligence component personnel under section 
     208 of the Homeland Security Act of 2002.
       The Conference intends that the United States Secret 
     Service should participate to the fullest extent in the 
     integration and

[[Page 20726]]

     management of the intelligence enterprise of the Department. 
     Given unique operational equities of the United States Secret 
     Service, however, the Conference does not believe that it is 
     appropriate to specifically identify the United States Secret 
     Service as an ``intelligence component'' of the Department. 
     The provision also clarifies that nothing in this Act 
     interferes with the position of the United States Secret 
     Service as a ``distinct entity'' within the Department.
       Subsection (b) carves out the Coast Guard from the 
     definition of ``intelligence component of the Department'' 
     when it is engaged in certain activities or acting under or 
     pursuant to particular authorities. The Conference concurs 
     that nothing in this section shall provide the Under 
     Secretary for Intelligence and Analysis with operational or 
     other tasking authority over the Coast Guard. The Conference 
     nevertheless believes that the Coast Guard should collaborate 
     and participate in the intelligence enterprise of the 
     Department of Homeland Security.
     Section 503. Role of intelligence components, training, and 
         information sharing
       Section 742 of the House bill delineates several key 
     responsibilities for the head of each intelligence component 
     of the Department regarding support for, and coordination and 
     cooperation with, the Under Secretary for Intelligence and 
     Analysis in the areas of acquisition, analysis, and 
     dissemination of homeland security information; performance 
     appraisals, bonus or award recommendations, pay adjustments, 
     and other forms of commendation; recruitment and selection of 
     intelligence officials of intelligence components detailed to 
     the Office of Intelligence and Analysis; reorganization and 
     restructuring of intelligence components; and program and 
     policy compliance.
       Section 114 of the Senate bill, in turn, establishes 
     information sharing incentives for employees and officers 
     across the Federal Government by providing the President and 
     agency heads with the discretion to consider, when making 
     cash awards for outstanding performance, an employee's or 
     officer's success in sharing information within the scope of 
     the information sharing environment (ISE) described in 
     Section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485). It also requires 
     agency and department heads to adopt best practices to 
     educate and motivate employees and officers to participate 
     fully in that environment--through, among other things, 
     promotions, other nonmonetary awards, and recognition for a 
     job well done.
       The Conference substitute combines the House and Senate 
     provisions, with modifications.
       The Conference concurs that creating these additional 
     responsibilities for the heads of the intelligence components 
     will institute a clearer relationship between the Under 
     Secretary for Intelligence and Analysis and the intelligence 
     components of the Department. Successful implementation of 
     this section should result in a strengthened departmental 
     intelligence capability allowing information and intelligence 
     to be seamlessly fused into intelligence products that are 
     truly National. It would integrate information obtained at 
     America's land and maritime borders; from State and local 
     governments; and including intelligence on ports, mass 
     transit facilities, chemical plants, and other critical 
     infrastructure. While the Department has taken many solid 
     steps in this direction since the completion of the Second 
     Stage Review in July 2005, the Conference believes that the 
     Secretary must redouble efforts to better integrate the 
     intelligence components of the Department internally.
       The Conference notes that one of the greatest challenges to 
     establishing the ISE is conveying its importance to employees 
     and officers across the Federal Government who are being 
     asked to do something new and--in many cases--foreign to 
     them. Incentives will motivate many such employees and 
     officers to educate themselves about the guidelines, 
     instructions, policies, procedures, and standards that are 
     applicable to the ISE and how their particular agency or 
     department is incorporating them into its culture. The 
     Conference observes, however, that nothing in this section 
     should be construed to prohibit an agency or department head, 
     in consultation with the program manager of the ISE under 
     section 1016 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (6 U.S.C. 485) (``ISE Program 
     Manager''), from prescribing appropriate penalties for 
     failing to participate fully in the ISE.
     Section 504. Information sharing
       There is no comparable House provision.
       Section 112 of the Senate bill amends section 1016 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 by 
     broadening the definition of ``terrorism information'' to 
     include both homeland security information and weapons of 
     mass destruction information and by defining ``weapons of 
     mass destruction information.'' Senate Section 112 likewise 
     eliminates the temporary terms of both the ISE Program 
     Manager and the Information Sharing Council, set to expire in 
     April 2007, and makes them permanent. Additionally, it 
     enhances the ISE Program Manager's government-wide authority 
     not only by clarifying the Program Manager's existing 
     authority over the information sharing activities of Federal 
     agencies but also by establishing new authorities to (1) 
     issue government-wide information sharing standards; (2) 
     identify and resolve information sharing disputes; and (3) 
     identify to the Director of National Intelligence appropriate 
     personnel from agencies represented on the Information 
     Sharing Council for detail assignments to the Program Manager 
     to support staffing needs. Senate Section 112 also authorizes 
     up to 40 FTEs and $30,000,000 in each of the next two fiscal 
     years to support the Program Manager. Finally, it requires 
     the government to report on the feasibility of eliminating 
     Originator Control markings, adopting an authorized use 
     standard for information sharing, and using anonymized data 
     to promote information sharing.
       The Conference substitute adopts the Senate provision, with 
     modifications. Among other things, it excludes ``homeland 
     security information'', as defined in Section 892(f) of the 
     Homeland Security Act of 2002, from the definition of 
     ``terrorism information''. The specialized missions of the 
     Department create for it a unique role within the larger 
     Intelligence Community that requires, among other things, 
     specific information for preventing, interdicting, and 
     disrupting terrorist activity and securing the homeland in 
     the aftermath of a terrorist attack. Accordingly, the 
     Conferees concur that ``homeland security information'' is 
     sufficiently distinct from the more broadly defined 
     ``terrorism information'' to merit keeping the definitions 
     separate.
     Section 511. Department of Homeland Security State, Local, 
         and Regional Fusion Center initiative
       Section 732 of the House bill directs the Secretary to 
     establish a DHS State, Local, and Regional Fusion Center 
     Initiative to coordinate the Department's intelligence 
     efforts with State, local, and regional fusion centers; 
     assist fusion centers with carrying out their homeland 
     security duties; facilitate information sharing efforts 
     between fusion centers and the Department; encourage 
     nationwide and integrated information sharing among fusion 
     centers themselves; and incorporate robust privacy and civil 
     liberties safeguards and training into fusion center 
     operations.
       Section 121 of the Senate bill contains comparable 
     language.
       The Conference concurs that the DHS State, Local, and 
     Regional Fusion Center Initiative is key to Federal 
     information sharing efforts and must succeed in order for the 
     Department to remain relevant in the blossoming State and 
     local intelligence community. State, local, and regional 
     fusion centers are being successfully established across the 
     country by State and local law enforcement and intelligence 
     agencies. The Conference agrees that the Department's Office 
     of Intelligence and Analysis, which has a primary 
     responsibility for sharing information with State, local, and 
     regional officials, needs to play a stronger, more 
     constructive role in assisting these centers and are pleased 
     to see that the Department has begun doing so. However, the 
     Department must act quickly, thoroughly, and cooperatively in 
     order to provide the maximum amount of support for these 
     centers.
       The Conference applauds the State, local, and regional 
     efforts to make fusion centers a reality and the dedication 
     of those who staff those centers. The Conference notes, 
     however, that although fusion centers are led, operated, and 
     otherwise run by States and localities, there is a need for a 
     common baseline of operations at fusion centers in order to 
     attain not only their full potential but also the full 
     potential of the various initiatives undertaken in the 
     Conference agreement. The Conference expects that the grant 
     process established in the Conference substitute, the 
     qualifying criteria for fusion centers wishing to participate 
     in the DHS State, Local, and Regional Fusion Center 
     Initiative, and the guidelines for fusion centers included in 
     the Conference substitute will all help create a common 
     baseline of operations for fusion centers that will ensure 
     their success into the future.
       The Conference substitute adopts Section 121 of the Senate 
     bill, with modifications, to reflect the key functionalities 
     and priorities of the Border Intelligence Fusion Center 
     Program established in Section 712 of the House bill. That 
     Program was designed to provide the Department with a more 
     robust ``border intelligence'' capability--a capability 
     essential to improving the Department's ability to interdict 
     terrorists, weapons of mass destruction, and related 
     contraband at America's land and maritime borders. The 
     Conference concurs that the Department can make better use of 
     its resources, and obtain better situational awareness of 
     terrorist threats at or involving those borders, by 
     partnering more effectively with State, local, and tribal law 
     enforcement officers in relevant jurisdictions. With better 
     information sharing, those officers can act as ``force 
     multipliers'' that may very well help prevent the next 
     terrorist attack from abroad.
       The Conference believes that by deploying officers and 
     intelligence analysts from United States Customs and Border 
     Protection (CBP), United States Immigration and Customs 
     Enforcement (ICE), and the Coast

[[Page 20727]]

     Guard to fusion centers participating in the Program, the 
     Department can increase its capacity to create accurate, 
     actionable, and timely border intelligence products aimed at 
     this threat. In order to maximize their effectiveness, CBP, 
     ICE, and Coast Guard officers and analysts creating border 
     intelligence products should not only include the input of 
     police and sheriffs' officers as part of their process, but 
     also should ensure that those products actually respond to 
     the needs of officers in the field as expressed by those 
     officers. The Conference accordingly believes that the 
     Department personnel assigned to fusion centers under this 
     section should communicate with State, local, and tribal law 
     enforcement officers not only at fusion centers but also in 
     their actual communities where they are headquartered.
       While the Conference believes that the Department's effort 
     at State, local, and regional fusion centers is a critical 
     one that should be encouraged, they note that it is not the 
     only such effort. The Federal Bureau of Investigation (FBI), 
     for example, has had long-standing relationships with State, 
     local, and tribal law enforcement and other emergency 
     response providers through Joint Terrorism Task Forces 
     (JTTFs) across the country and has established Field 
     Intelligence Groups (FIGs) that are, in many case, colocated 
     with the fusion centers. Those relationships have continued 
     through the JTTFs, FIGs, and an established and growing FBI 
     presence at many fusion centers. Nothing in this section 
     should be construed to subordinate the role of the FBI to the 
     Department's own efforts with the JTTFs and at fusion 
     centers. On the contrary, it is the Conferees hope that the 
     Department, the FBI, and other Federal agencies will 
     coordinate as equal players at State, local, and regional 
     fusion centers in order to form a united Federal partnership 
     with their State and local counterparts on the front lines of 
     the nation's homeland security efforts.
       Further, the Conference recognizes that the Coast Guard is 
     establishing Interagency Operations Command Centers (IOCC's) 
     pursuant to the SAFE Port Act and authorized under Section 
     70107A of title 46, United States Code. IOCC's are being 
     developed as model Federal centers to improve interagency 
     cooperation, unity of command, and the sharing of 
     intelligence information in a common mission to provide 
     greater protection for port and intermodal transportation 
     systems against acts of terrorism in the maritime domain. 
     Nothing in this section should be construed to subordinate 
     the role of the Coast Guard's efforts with the IOCC's.
       Finally, the Conference recognizes, consistent with the 
     Fusion Center Guidelines produced jointly by the Department 
     of Justice and DHS, the important role of the public safety 
     component in the fusion process. Emergency response providers 
     are able to provide valuable information to the overall 
     intelligence picture; likewise, the fusion process may 
     provide advance information that enables essential 
     preparation measures to enable a more effective response. 
     Therefore, while the Conference stresses that State and local 
     governments must ultimately determine the mission, 
     composition, operating procedures, and communication channels 
     of fusion centers and the fusion process, they emphasize the 
     inherent value in including emergency response providers 
     within the governance structure making these determinations. 
     Nothing in this section is intended to mandate that 
     representatives of the emergency response provider community 
     should be physically located in all fusion centers or that 
     their mission should shift emphasis from the missions of the 
     intelligence and law enforcement communities. Rather, the 
     Conference intends that fusion center governing boards and 
     the fusion process should be structured so as to enable the 
     consideration of nontraditional information from emergency 
     response providers in a collaborative environment.
     Section 512. Homeland Security Information Sharing Fellows 
         Program
       Section 733 of the House bill directs the Secretary, 
     through the Under Secretary for Intelligence and Analysis, to 
     establish a fellowship program for State, local, and tribal 
     officials to rotate into the Office of Intelligence and 
     Analysis in order to identify for Department intelligence 
     analysts the kinds of homeland security information that are 
     of interest to State, local, and tribal law enforcement and 
     other emergency response providers; assist Department 
     intelligence analysts in writing intelligence reports in a 
     shareable format that provides end users with accurate, 
     actionable, and timely information without disclosing 
     sensitive sources and methods; serve as a point of contact 
     for State, local, and tribal law enforcement officers and 
     other emergency response providers in the field who want to 
     share information with the Department; and assist in the 
     dissemination of homeland security information to appropriate 
     end users.
       Section 122 of the Senate bill contains nearly identical 
     language.
       The Conference substitute adopts the Senate's provision, as 
     modified. The Conference concurs that implementation of this 
     section will help break down the cultural barriers to 
     information sharing by teaming State, local, and tribal 
     homeland security and law enforcement officers with the 
     Department intelligence analysts tasked with creating 
     intelligence products for them. The Conference notes that 
     this section will complement the DHS State, Local, and 
     Regional Fusion Center Initiative by providing State, local, 
     and tribal officials with better insight and input into the 
     Department's information sharing operations and allowing them 
     to play a greater role in the Department's information 
     sharing effort.
     Section 513. Rural Policing Institute
       There is no comparable House provision.
       Section 123 of the Senate bill creates a ``Rural Policing 
     Institute'' that is to be administered by the Federal Law 
     Enforcement Training Center. The Institute would provide 
     training for local and tribal law enforcement officers 
     located in rural areas--defined as those areas not located 
     within metropolitan statistical areas, as defined by the 
     Office of Management and Budget--and would be tailored to law 
     enforcement requirements that are unique to those areas. 
     Section 123 would require the inclusion of several law 
     enforcement topics in the curriculum, including 
     methamphetamine addiction and distribution, domestic 
     violence, and law enforcement response to school shootings. 
     It likewise requires an assessment of these and other 
     requirements and the development of a curriculum to address 
     those requirements. Section 123 authorizes $10 million for 
     Fiscal Year 2008 for the administration of the program and $5 
     million for each of Fiscal Years 2009 through 2013.
       The Conference substitute adopts the Senate provision, with 
     modifications. It broadens the Institute's focus to encompass 
     not only law enforcement agencies but also other emergency 
     response providers located in rural areas. Moreover, it 
     deletes the references to training related to specific 
     criminal offenses, and replaces them with training programs 
     with a greater focus on homeland security in the areas of 
     intelligence-led policing and protections for privacy, civil 
     right, and civil liberties.
     Section 521. Interagency Threat Assessment and Coordination 
         Group
       There is no comparable House provision.
       Section 131 of the Senate bill directs the Information 
     Sharing Environment (ISE) Program Manager to oversee and 
     coordinate the creation of an Interagency Threat Assessment 
     and Coordination Group (ITACG) that has as its primary 
     mission the production of Federally coordinated products 
     derived from information within the scope of the ISE for 
     distribution to State, local, and tribal government officials 
     and the private sector. Section 131 of the Senate bill 
     locates the ITACG at the National Counterterrorism Center 
     (NCTC) and directs the Secretary to assign a senior level 
     officer to manage and direct the administration of the ITACG; 
     to determine how specific products should be distributed to 
     end users; and to establish standards for the admission of 
     law enforcement and intelligence officials from State, local, 
     or tribal governments into the ITACG. Section 131 of the 
     Senate bill further prescribes the membership of the ITACG--
     including State, local, and tribal law enforcement and 
     intelligence officials--and directs the ISE Program Manager 
     to establish criteria for the selection of those officials 
     and for the proper handling and safeguarding of information 
     related to terrorism.
       The Conference substitute adopts the Senate provision, with 
     modifications. The Conference notes that the ITACG has roots 
     in, among other places, the ISE Implementation Plan (the 
     Plan) prepared by the ISE Program Manager in November 2006 to 
     ensure the timely and effective production, integration, 
     vetting, sanitization, and communication of terrorism 
     information to the Federal Government's State, local, and 
     tribal partners. The Plan explained that a ``primary purpose 
     of the ITACG will be to ensure that classified and 
     unclassified intelligence produced by Federal organizations 
     within the intelligence, law enforcement, and homeland 
     security communities is fused, validated, deconflicted, and 
     approved for dissemination in a concise and, where possible, 
     unclassified format'' to State, local, and tribal officials. 
     The ISE Program Manager envisioned having the ITACG based at 
     the NCTC and managed on a day-to-day basis by a senior 
     Department official. The ISE Program Manager likewise 
     envisioned that the Department and the Department of Justice 
     would share the decision-making authority regarding how to 
     disseminate various types of information to State, local, and 
     tribal officials and the private sector.
       The Conference substitute bifurcates the ITACG into two 
     distinct entities. The first entity, an ITACG Advisory 
     Council chaired by the Secretary or the Secretary's designee, 
     shall set policy and develop processes for the integration, 
     analysis, and dissemination of Federally-coordinated 
     information within the scope of the ISE, including homeland 
     security information, terrorism information, and weapons of 
     mass destruction information. The second entity, an ITACG 
     Detail created by the Secretary and managed by a senior 
     Department intelligence official, shall be comprised of 
     State, local, and tribal homeland security and law 
     enforcement officers detailed to work in the NCTC with NCTC 
     and other Federal intelligence analysts. Participants in the 
     ITACG Detail shall

[[Page 20728]]

     integrate, analyze, and assist the dissemination of the 
     aforementioned information to appropriate State, local, 
     tribal, and private sector end users.
       The Conference strongly believes that the ITACG presents 
     the Department with a unique opportunity to realize its 
     mission as the primary source of accurate, actionable, and 
     timely homeland security information for its State, local, 
     tribal and private sector partners that Congress had 
     originally envisioned in the Homeland Security Act of 2002 (6 
     U.S.C. 101). The Department should seize the moment. The 
     ITACG will provide the Department and the wider Intelligence 
     Community with an unmatched ability to identify information 
     that is of interest and utility to those partners; produce 
     reports which can be disseminated to them in an unclassified 
     format or at the lowest possible classification level; and 
     assist in the targeted dissemination of particular 
     intelligence products to appropriate end users. By building 
     upon the Department's customer service approach to 
     information sharing, Department leadership of the ITACG will 
     help the Department and other Federal agencies co-located at 
     the NCTC to leverage their existing ties with their State, 
     local, tribal, and private sector counterparts and ultimately 
     invigorate the two-way flow of information with them that the 
     9/11 Commission identified as critical to making the homeland 
     more secure.
       While the Secretary will play the primary role in 
     establishing and maintaining the ITACG Detail and shall 
     detail a senior intelligence official from the Department to 
     manage its day-to-day activities, the Department is reminded 
     that it is a guest in the NCTC. As direct reports to the 
     Director of the NCTC, the senior intelligence official from 
     the Department and the ITACG detailees themselves must comply 
     with all policies, procedures, and rules applicable to other 
     staff working in the NCTC--including any mandatory polygraph 
     examination for NCTC staff. Neither the ITACG Advisory 
     Council nor the ITACG Detail are in any way intended to 
     impede, replicate, or supplant the analytic and/or production 
     efforts of the NCTC, nor are they intended to duplicate, 
     impede, or otherwise interfere with existing and established 
     counterterrorism roles and responsibilities.
       With regard to the preparation, review, and dissemination 
     of products from the ITACG Detail, it is the Conference's 
     intent that those products be subject to the same policies, 
     procedures, and rules applicable to NCTC products. Pursuant 
     to 102A(f)(1)(B)(iii) and 119(f)(E) of the National Security 
     Act of 1947 (50 U.S.C. 402 et seq.), it is the Conference's 
     further intent that the Director should act as a gatekeeper 
     when providing products prepared by the ITACG Detail to the 
     Department, the Department of Justice, and other appropriate 
     agencies for dissemination to State, local, tribal, and 
     private sector end users. Nothing in this section should be 
     construed to mean that the Director may distribute products 
     prepared by the ITACG Detail directly to those end users.
       Finally, the Conference agrees that the privacy and civil 
     liberties impact assessment required under this section shall 
     specifically address how the ITACG will incorporate the 
     Guidelines to Implement Information Privacy Rights and other 
     Legal Protections in the Development and Use of the 
     Information Sharing Environment released by the President on 
     November 22, 2006 (Presidential Guidelines) to protect 
     privacy rights and civil liberties.
     Section 531. Office of Intelligence and Analysis and Office 
         of Infrastructure Protection
       The Homeland Security Act of 2002 (6 U.S.C. 101) created an 
     Under Secretary for Information Analysis, assisted by an 
     Assistant Secretary for Information and Analysis and an 
     Assistant Secretary for Infrastructure Protection, and 
     specified the Under Secretary's primary responsibilities. 
     These include: (1) receiving and analyzing law enforcement 
     information, intelligence, and other lawfully obtained 
     information in order to understand the nature and scope of 
     the terrorist threat to the United States homeland; (2) 
     integrating relevant information to produce and disseminate 
     infrastructure vulnerabilities assessments; (3) analyzing 
     that information to identify and prioritize the types of 
     protective measures to be taken; (4) making recommendations 
     for information sharing and developing a national plan that 
     would outline recommendations to improve the security of key 
     resources; (5) administering the Homeland Security Advisory 
     System; (6) exercising primary responsibility for public 
     threat advisory and providing specific warning information to 
     State and local governments and the private sector, as well 
     as advice about appropriate protective actions and 
     countermeasures; (7) making recommendations for improvements 
     in the policies and procedures governing the sharing of law 
     enforcement, intelligence, and other information relating to 
     homeland security within the Federal government and between 
     the Federal government and State and local governments.
       Following the completion of the Department's Second Stage 
     Review in July of 2005, the Secretary renamed the Office of 
     Information Analysis the ``Office of Intelligence and 
     Analysis'' and gave it responsibilities in addition to those 
     outlined in the Homeland Security Act. In addition to its 
     statutory duties, one of the major responsibilities for the 
     new Office of Intelligence and Analysis is to serve as the 
     Chief Intelligence Office of the Department--taking 
     responsibility for leading the intelligence components of the 
     Department.
       Sections 741 and 743 of the House bill reflect these 
     changes by statutorily reorganizing the Directorate for 
     Information Analysis and Infrastructure Protection by doing 
     away with the Directorate and the Under Secretary for 
     Information Analysis and Infrastructure Protection position 
     and officially establishing in its place a separate Office of 
     Intelligence and Analysis, elevating the Assistant Secretary 
     for Information and Analysis to an Under Secretary for 
     Intelligence and Analysis as its head; and a separate Office 
     of Infrastructure Protection, headed by the Assistant 
     Secretary for Infrastructure Protection. Sections 741 and 743 
     of the House bill likewise divide the responsibilities of the 
     former Under Secretary for Information Analysis and 
     Infrastructure Protection outlined in Section 201(d) of the 
     Homeland Security Act between the new Under Secretary for 
     Intelligence and Analysis and new Assistant Secretary for 
     Infrastructure Protection. Section 741 in the House bill also 
     adds several new responsibilities for the Under Secretary for 
     Intelligence and Analysis.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provisions, with 
     substantial modifications. While the Conference agrees with 
     the Department's consolidation of the duties of the Office of 
     Intelligence and Analysis, they also believe that the powers 
     of the Department's Chief Intelligence Officer can only be 
     effectively wielded by an Under Secretary. Therefore, this 
     section amends the Homeland Security Act of 2002 (6 U.S.C. 
     101) to restructure the Department to reflect the changes 
     wrought by the Second Stage Review by elevating the Assistant 
     Secretary for Information Analysis to Under Secretary for 
     Intelligence and Analysis and by officially establishing an 
     Office of Intelligence and Analysis and an Office of 
     Infrastructure Protection.
       The Conference substitute retains those authorities from 
     Section 201(d) of the Homeland Security Act in the Secretary 
     for delegation to the appropriate officials. Those 
     authorities include a new authority in the Conference 
     agreement, to be carried out most likely by the Under 
     Secretary for Intelligence and Analysis: the provision of 
     guidance to the heads of intelligence components on 
     developing budgets, and the presentation of recommendations 
     for a consolidated intelligence budget to the Secretary.
       Finally, the Conference substitute establishes an 
     additional Under Secretary responsible for overseeing 
     critical infrastructure protection, cybersecurity, and other 
     related programs of the Department.

           TITLE VI--CONGRESSIONAL OVERSIGHT OF INTELLIGENCE

     Section 601. Availability to public of certain intelligence 
         funding information
       There is no comparable House provision.
       Section 1201 of the Senate bill requires the President to 
     disclose to the public the aggregate amount of funds 
     requested for the National Intelligence Program for each 
     fiscal year. It also would require Congress to disclose to 
     the public the aggregate amount authorized to be appropriated 
     and the aggregate amount appropriated for the National 
     Intelligence Program. The 9/11 Commission recommended in 2004 
     that the aggregate amount of funding for national 
     intelligence be declassified, and in 2004 the Senate-passed 
     version of the Intelligence Reform and Terrorism Prevention 
     Act included a similar provision.
       The Conference substitute adopts the Senate provision with 
     modifications. The Conference substitute requires the 
     Director of National Intelligence to disclose to the public 
     the aggregate amount of funds appropriated by Congress for 
     the National Intelligence Program, beginning with Fiscal Year 
     2007. Beginning with Fiscal Year 2009, it allows the 
     President to waive or postpone this disclosure by submitting 
     to the Select Committee on Intelligence of the Senate and 
     Permanent Select Committee of the House of Representatives an 
     unclassified statement that the disclosure would damage 
     national security, and a statement detailing the reasons for 
     the waiver or postponement, which may be submitted in 
     classified form.
     Section 602. Public Interest Declassification Board
       There is no comparable House provision.
       Section 1203 of the Senate bill authorizes the Public 
     Interest Declassification Board, upon receiving a 
     Congressional request, to conduct a review and make 
     recommendations regardless of whether the review is requested 
     by the President. It further provides that any 
     recommendations submitted by the Board to the President shall 
     also be submitted to the Chairman and Ranking Minority Member 
     of the requesting Committee and extends the authorization of 
     the Board for four years until the end of 2012.
       As described in its report on activities in the 109th 
     Congress (S. Rep. No. 110-57, at p. 26), in September 2006, 
     the Senate Select Committee on Intelligence released two 
     reports on prewar intelligence regarding Iraq.

[[Page 20729]]

     In the introduction to one, the Committee expressed 
     disagreement with the Intelligence Community's decision to 
     classify portions of the report. Members of the Committee 
     wrote to the then recently constituted Public Interest 
     Declassification Board to request that it review the material 
     and make recommendations about its classification. The Board 
     responded that it might not be able to do so without White 
     House authorization. In December 2006, the Board wrote to 
     Congress to request that the statute establishing the Board 
     be clarified to enable it to begin, without White House 
     approval, a declassification review requested by Congress.
       The Conference substitute adopts the Senate provision with 
     minor technical and conforming changes to the Public Interest 
     Declassification Act of 2000 (50 U.S.C. 435 note) to 
     substitute the ``Director of National Intelligence'' for the 
     ``Director of Central Intelligence.''
     Section 603. Sense of the Senate regarding a report on the 9/
         11 Commission recommendations with respect to 
         intelligence reform and congressional intelligence 
         oversight reform
       There is no comparable House provision.
       Section 1204 of the Senate bill makes findings related to 
     the 9/11 Commission's recommendation on Congressional 
     oversight of intelligence. It expresses the Sense of the 
     Senate that the Committee on Homeland Security and 
     Governmental Affairs and the Select Committee on Intelligence 
     of the Senate should undertake a review of the 
     recommendations made in the final report of the 9/11 
     Commission with respect to intelligence reform and 
     Congressional intelligence oversight reform, review and 
     consider other suggestions, options, or recommendations for 
     improving intelligence oversight, and not later than December 
     21, 2007, submit to the Senate a joint report or individual 
     reports that include the recommendations of the Committees, 
     if any, for carrying out such reforms.
       The Conference substitute adopts the Senate provision.
     Section 604. Availability of funds for the Public Interest 
         Declassification Board
       There is no comparable House provision.
       Section 1205 of the Senate bill allows the National 
     Archives and Records Administration to obligate monies to 
     carry out the activities of the Public Interest 
     Declassification Board from the Continuing Appropriations 
     Resolution of 2007, as amended.
       The Conference substitute adopts the Senate provision.
     Section 605. Availability of the executive summary of the 
         Report on Central Intelligence Agency Accountability 
         Regarding the Terrorist Attacks of September 11, 2001
       There is no comparable House provision.
       Section 1206 of the Senate bill provides that not later 
     than 30 days after the enactment of this Act, the CIA 
     Director shall prepare and make available to the public a 
     version of the Executive Summary of a report by the CIA 
     Inspector General that is declassified to the maximum extent 
     possible consistent with national security.
       The underlying document is the Office of Inspector General 
     Report on Central Intelligence Agency Accountability 
     Regarding Findings and Conclusions of the Joint Inquiry Into 
     Intelligence Community Activities Before and After September 
     11, 2001.
       The CIA Director is to submit to Congress a classified 
     annex that explains why any redacted material in the 
     Executive Summary was withheld from the public. The Senate 
     Select Committee on Intelligence includes a similar provision 
     in its Intelligence Authorization Act for Fiscal Year 2008. 
     The Committee's efforts to obtain this measure of public 
     accountability are detailed in its report on the Committee's 
     activities in the 109th Congress, S. Rep. No. 110-57, at pp. 
     24-26 (2007).
       The Conference substitute adopts the Senate provision.

                      TITLE VII--TERRORIST TRAVEL

     Section 701. Report on international collaboration to 
         increase border security, enhance global document 
         security, and exchange terrorist information
       Section 611 of the House bill requires the Department of 
     Homeland Security (the Department or DHS), in conjunction 
     with the Director of National Intelligence and the heads of 
     other relevant Federal agencies, to submit a report to 
     Congress outlining the actions the U.S. government has taken 
     to collaborate with international partners to increase border 
     security, enhance document security, and exchange information 
     about terrorists.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 711. Modernization of the Visa Waiver Program
       There is no comparable House provision.
       Section 501 of the Senate bill enhances the security 
     requirements in the Visa Waiver Program and provides for the 
     program's limited expansion. This section authorizes the 
     development and implementation of an electronic travel 
     authorization system under which each Visa Waiver Program 
     traveler would electronically provide information, in advance 
     of travel, necessary to determine whether the individual is 
     eligible to travel to the United States. The Section also 
     requires the Secretary of Homeland Security (the Secretary) 
     to establish an exit system that records the departure of 
     every alien who entered under the Visa Waiver Program and 
     departed the United States by air. In addition to existing 
     program requirements, all Visa Waiver Program countries are 
     required to enter into agreements with the United States to 
     report information about the theft or loss of passports, 
     accept repatriation of its citizens, and share information 
     about whether a national of that country traveling to the 
     United States represents a threat to U.S. security.
       Section 501 permits the Secretary of Homeland Security, in 
     consultation with the Secretary of State, to waive the 
     existing 3 percent nonimmigrant visa refusal rate 
     requirement, up to 10 percent, for admission into the Visa 
     Waiver Program. Alternatively, the Secretary can waive the 
     existing 3 percent nonimmigrant visa refusal rate if a 
     country's nationals do not exceed a rate, set by the 
     Secretary, of overstaying their authorized admission in the 
     United States. This waiver authority is only granted to 
     countries meeting additional security criteria, including 
     cooperating in counterterrorism initiatives, and only when 
     the Secretary determines that security or law enforcement 
     interests of the United States will not be compromised. 
     Before exercising a waiver, the Secretary must also certify 
     to Congress that an air exit system is in place that can 
     verify the departure of not less than 97 percent of foreign 
     nationals who exit by air.
       The Conference adopts the Senate provision, with 
     modifications.
       The Conference recognizes that the Visa Waiver Program, 
     which Congress established in 1986, has benefitted commerce 
     and tourism between the United States and participating Visa 
     Waiver Program countries. The Conference believes that a 
     modernization of the program is long overdue and that a 
     careful and controlled expansion to countries who have not 
     quite met existing program entrance requirements but who have 
     been partners with the U.S. in fighting terrorism is 
     appropriate in order to promote greater international 
     security cooperation. In the wake of the terrorist attacks of 
     September 11, 2001 and subsequent foiled terror plots, the 
     imperative for reform is greater than ever.
       The Conference agrees on the need for significant security 
     enhancements to the entire Visa Waiver Program as set forth 
     in the Senate bill and to the implementation of the 
     electronic travel authorization system prior to permitting 
     the Secretary to admit new countries under his new waiver 
     authority. The Conference mandates that the Secretary develop 
     such an electronic travel authorization system to collect 
     biographical and such other information from each prospective 
     Visa Waiver Program traveler necessary to determine whether 
     the alien is eligible to travel under the program and whether 
     a law enforcement or security risk exists in permitting the 
     alien to travel to the United States. The Conference believes 
     the Secretary should check the information collected in the 
     electronic travel authorization system against all 
     appropriate databases, including lost and stolen passport 
     databases such as that maintained by Interpol. The Conference 
     believes that checking travelers from Visa Waiver Program 
     countries against all appropriate watch lists and databases 
     will greatly enhance the overall security of the Visa Waiver 
     Program.
       In addition, the Conference agrees to permit the Secretary 
     of Homeland Security, in consultation with the Secretary of 
     State, to waive the existing 3 percent nonimmigrant visa 
     refusal rate requirement, up to 10 percent, and to allow the 
     Secretary to establish an overstay rate in lieu of the 3 
     percent nonimmigrant visa refusal rate for admission into the 
     Visa Waiver Program. The Conference believes this overstay 
     rate should reflect a reasonable expectation that the country 
     can continue to participate in the VWP under existing 
     statutory criteria.
       The Conference further agrees to provide the Secretary this 
     waiver authority upon certification by the Secretary to 
     Congress that there is an air exit system in place to verify 
     the departure of not less than 97 percent of foreign 
     nationals who exit by air, which may or may not be fully 
     biometric. The Conference also agrees that the ultimate goal 
     is to achieve a fully biometric air exit system, as described 
     in subsection (I) of the bill. Therefore, if such a biometric 
     system is not implemented by June 30, 2009, the Secretary's 
     waiver authority that was based upon his certification of 97 
     percent accuracy of any non-biometric exit system shall be 
     suspended until a biometric exit system is fully operational. 
     Establishment of this biometric system will implement a 9/11 
     Commission recommendation and will enhance our border 
     security and immigration enforcement by ensuring our ability 
     to track the arrivals and departures of foreign nationals.
     Section 721. Strengthening the capabilities of the Human 
         Smuggling and Trafficking Center
       Section 601 of the House bill directs the Secretary, acting 
     through the Assistant Secretary of Homeland Security for 
     Immigration and Customs Enforcement (ICE), to:

[[Page 20730]]

     provide administrative support and funding to the Human 
     Smuggling and Trafficking Center (the Center); ensure the 
     Center is staffed with not fewer than 30 full-time equivalent 
     personnel; and seek reimbursement from the Attorney General 
     and the Secretary of State for costs associated with the 
     participation of their respective departments in the 
     operation of the Center. The section also directs the Office 
     of Intelligence and Analysis (renamed under section 741), in 
     coordination with the Center, to submit to law enforcement 
     and relevant agencies periodic reports regarding terrorist 
     threats related to such smuggling, trafficking, and travel.
       Section 502 of the Senate bill is a comparable section but 
     amends Section 7202 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (8 U.S.C. 1777) to direct the 
     Secretary to nominate a U.S. government official to serve as 
     the Director of the Human Smuggling and Trafficking Center, 
     in accordance with the Center's Memorandum of Understanding 
     entitled ``Human Smuggling and Trafficking Center Charter.'' 
     This section also clarifies the role of the Center as the 
     focal point for interagency efforts to integrate and 
     disseminate intelligence and information related to terrorist 
     travel. The section requires that the Center be staffed with 
     at least 40 full time employees and directs the Secretary to 
     work with various DHS agencies and other Federal Departments 
     to provide detailees with appropriate areas of expertise. The 
     section also authorizes $20 million to allow the Center to 
     carry out its existing responsibilities, fund the 
     administrative costs and management of the Center, increase 
     staffing levels and reimburse other Federal Departments for 
     personnel.
       The Conference substitute adopts the Senate provision, with 
     modifications. The Conference agrees that the Center should 
     be staffed with intelligence analysts or special agents with 
     demonstrated experience related to human smuggling, 
     trafficking in persons, or terrorist travel, in addition to 
     individuals with other expertise including consular affairs, 
     counterterrorism, and criminal law enforcement from 
     throughout the government.
       The Conference also agrees that the Secretary and the heads 
     of other relevant agencies should provide incentives for 
     service at the Center, particularly for personnel who serve 
     terms of at least two years. Staff detailed to the Center, 
     except for those subject to the provisions of the Foreign 
     Service Act of 1980, shall be considered for promotion at 
     rates equivalent to or better than similarly situated 
     personnel not so assigned.
       The Conference agrees to adopt section 601(f) from the 
     House provision, but delete the requirement that the Office 
     of Intelligence and Analysis submit reports to ``Federal'' 
     law enforcement agencies and ``other relevant agencies,'' as 
     this would be a function performed by the Center. The 
     Conference clarifies that subsection (d) in no way impedes 
     the authority of the Secretary of State to participate in the 
     selection of the Director of the Center, a role that is 
     described in the Center's memorandum of understanding 
     entitled ``Human Smuggling and Trafficking Center Charter,'' 
     as amended as of October 1, 2006. That Memorandum of 
     Understanding establishes that the Director will be confirmed 
     by the Department, the Department of Justice, and the State 
     Department. Finally, the Conferees agree to fund 40 full-time 
     equivalent staff and to authorize $20 million for the Center 
     for Fiscal Year 2008.
     Section 722. Enhancements to the Terrorist Travel Program
       There is no comparable House provision.
       The Department never created the terrorist travel program 
     mandated by section 7215 of Public Law 108-458. Section 503 
     of the Senate bill requires the Secretary to establish the 
     program within 90 days of enactment and to report to Congress 
     within 180 days on the implementation of the program. The 
     section requires that the Assistant Secretary for Policy at 
     the Department, or another official that reports directly to 
     the Secretary, be designated as head of the terrorist travel 
     program and outlines specific duties to be carried out by the 
     head of the program. Those duties include: developing 
     strategies and policies for the Department to combat 
     terrorist travel; reviewing the effectiveness of existing 
     programs to combat terrorist travel across DHS; making budget 
     recommendations that will improve DHS's ability to combat 
     terrorist travel; and ensuring effective coordination among 
     DHS agencies with missions related to intercepting and 
     apprehending terrorists. This section also designates the 
     head of the program as the point of contact for DHS with the 
     National Counterterrorism Center and requires that the 
     Secretary submit a report to Congress on the implementation 
     of the section.
       The Conference substitute adopts the Senate provision.
     Section 723. Enhanced driver's license
       There is no comparable House provision.
       Section 504 of the Senate bill would require the Secretary 
     to enter into a memorandum of agreement with at least one 
     State to pilot the use of enhanced driver's licenses that 
     would be valid for a U.S. citizen's admission into the United 
     States from Canada and require a report to Congress on the 
     pilot.
       The Conference substitute adopts the Senate provision, as 
     modified to permit a pilot of U.S. citizens entering the 
     country from either Canada or Mexico.
     Section 724. Western Hemisphere Travel Initiative
       There is no comparable House provision.
       Section 505 of the Senate bill would require the Secretary 
     to complete a cost-benefit analysis of the Western Hemisphere 
     Travel Initiative (WHTI) and a study of ways to reduce the 
     fees associated with passport cards prior to publishing a 
     final rule for WHTI.
       The Conference substitute adopts the Senate provision, as 
     modified to specify that the Secretary of State shall develop 
     proposals for reducing passport card fees, including through 
     mobile application teams who could accept applications for 
     the passport card in communities particularly affected by 
     WHTI. The Conference believes that the cost/benefit analysis 
     should include the cost to the State Department and resources 
     required to meet the increased volume of passports requests.
     Section 725. Model ports-of-entry
       There is no comparable House provision.
       Section 506 of the Senate bill would require the Secretary 
     to establish a model ports of entry program aimed at 
     improving security and streamlining the current arrival 
     process for incoming travelers at the 20 busiest 
     international airports in the United States. It requires the 
     Department to hire at least 200 additional Customs and Border 
     Protection officers to address staff shortages at these 
     airports, and it would also require measures that would 
     ensure a more efficient international arrival process.
       The Conference substitute adopts the Senate provision, as 
     modified.
     Section 731. Report regarding border security.
       There is no comparable House provision.
       Section 1604 of the Senate bill directs the Secretary to 
     report to Congress regarding ongoing DHS initiatives to 
     improve security along the U.S. northern border. The section 
     also requires the Comptroller General to report to Congress 
     with a review and comments on that report and recommendations 
     regarding any necessary additional actions to protect that 
     border.
       The Conference substitute adopts the Senate provision, as 
     modified.

                TITLE VIII--PRIVACY AND CIVIL LIBERTIES

     Section 801.Modification of Authorities Relating to privacy 
         and civil liberties oversight board
       Sections 802, 803, 804, 805, and 806(a) of the House bill 
     amend Section 1061 of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (Public Law 108-458) by modifying the 
     structure and operations of the Privacy and Civil Liberties 
     Oversight Board (the Board). This section removes the Board 
     from the Executive Office of the President and makes the 
     Board an independent agency. It also requires each of the 
     Board's five members to be confirmed by the U.S. Senate. The 
     House language also provides the Board with subpoena powers 
     that will be enforced by the U.S. District Court in the 
     judicial district where the subpoenaed person resides. The 
     Board is required to submit not less than two reports each 
     year to the appropriate Committees of Congress that shall 
     include a description of the Board's activities, information 
     on its findings, conclusions, minority views, and 
     recommendations resulting from its advice and oversight 
     functions.
       Section 601 of the Senate bill is a comparable provision; 
     however, it strengthens the Board's authority without 
     removing it from the Executive Office of the President. 
     Additionally, the Senate provision also grants subpoena power 
     to the Board; however, it differs from the House provision in 
     that the subpoena must be issued by the Attorney General who 
     shall either issue the subpoena as requested or provide the 
     Board with an explanation if the subpoena request is modified 
     or denied. If the request is modified or denied, Congress 
     shall be notified of this action within thirty days.
       The Conference substitute adopts the House provision 
     regarding the removal of the Board from the Executive Office 
     of the President and adopts the Senate provision regarding 
     the Board's subpoena power. All other comparable provisions 
     were integrated.
     Section 802. Department Privacy Officer
       Section 812 of the House bill adopts the language contained 
     in the Privacy Officer with Enhanced Rights Act of 2007, as 
     introduced. In particular, this section expands the 
     Department of Homeland Security's (the Department or DHS) 
     Chief Privacy Officer's (CPO) access to any and all material 
     available to the Department that fall under the CPO's 
     purview. The CPO is also given authority to administer oaths 
     and issue subpoenas to facilitate investigations and 
     reporting requirements. The CPO's term of office would last 
     for a period of 5 years and the individual appointed would be 
     required to submit reports to Congress, without any prior 
     comment by the Secretary, Deputy Secretary or any other 
     officer of the Department, regarding the performance and 
     responsibilities of the Privacy Office.
       Section 603 of the Senate bill is a comparable provision, 
     except that it does not include the 5-year term of office as 
     mandated by the House provision, and it directs that the 
     CPO's subpoena authority be exercised with the approval of 
     the Secretary of Homeland Security (the Secretary).

[[Page 20731]]

       The Conference substitute adopts the House language with 
     changes, including the removal of the five year term of 
     office and specifying that the subpoena authority be 
     exercised through the Secretary. It also clarifies the 
     relationship between the CPO and the Office of the Inspector 
     General.
     Section 803. Privacy and Civil Liberties Officers
       Section 602 of the Senate bill establishes a network of 
     Privacy and Civil Liberties officers in Executive Branch 
     Agencies, in some cases strengthening the powers of existing 
     officers. It provides that the Departments of Justice, 
     Defense, State, Treasury, Health and Human Services, and 
     Homeland Security, the Director of National Intelligence and 
     the Central Intelligence Agency, and other agencies 
     designated by the Privacy and Civil Liberties Oversight 
     Board, are required to designate at least one senior official 
     to serve as an internal privacy and civil liberties officer, 
     to function as a source of advice and oversight on privacy 
     and civil liberties matters to the agency. Departments and 
     agencies may designate an existing privacy or civil liberties 
     officer for this role, and the legislation specifies that 
     where a Department or agency has a statutory privacy or civil 
     liberties officer, that officer shall perform the relevant 
     functions required by this section. These officers are 
     directed to make regular reports to their respective 
     department or agency heads, Congress, the Privacy and Civil 
     Liberties Oversight Board, and the public.
       Section 806(b) of the House bill is a comparable provision.
       The Conference substitute adopts the Senate provision.
     Section 804. Federal Agency Data Mining Reporting Act of 2007
       There is no comparable House provision.
       Section 604 of the Senate bill requires all Federal 
     agencies to report to Congress within 180 days and every year 
     thereafter on data mining programs developed or used to find 
     a pattern or anomaly indicating terrorist or other criminal 
     activity on the part of individuals, and how these programs 
     implicate the civil liberties and privacy of all Americans. 
     If necessary, specific information in the various reports 
     could be classified.
       The Conference substitute adopts the Senate language.

                 TITLE IX--PRIVATE SECTOR PREPAREDNESS

     Section 901. Private Sector Preparedness.
       Section 1101 of the House bill requires the Secretary of 
     Homeland Security (the Secretary) to establish a program to 
     enhance private sector preparedness for acts of terrorism and 
     other emergencies and disasters. The language also requires 
     the Secretary to support the development and promulgation of 
     preparedness standards, including the National Fire 
     Protection Association 1600 Standard.
       Section 803 of the Senate bill establishes a voluntary 
     certification program to assess whether a private sector 
     entity meets voluntary preparedness standards. In 
     consultation with private sector organizations listed in the 
     section, the Secretary would support the development of 
     voluntary preparedness standards and develop guidelines for 
     the accreditation and certification program. The 
     accreditation and certification process would be implemented 
     and managed by one or more qualified nongovernmental entities 
     selected by the Secretary. Under the program, companies 
     wishing to be certified would have their applications 
     reviewed by third parties accredited by the entity or 
     entities managing the program, which would determine if 
     certification was warranted.
       The Conference substitute adopts the Senate provision, as 
     well as aspects of section 1101 of the House bill, with 
     modifications. The Conference substitute permits the 
     development of guidance and recommendations, and 
     identification of best practices, to assist or foster private 
     sector preparedness. If such guidance and recommendations are 
     developed, the Administrator of Federal Emergency Management 
     Agency (FEMA) and the Assistant Secretary for Infrastructure 
     Protection will work to develop the guidance and 
     recommendations, and the Administrator of FEMA will issue 
     them. The Conference substitute requires the establishment of 
     a voluntary certification program which will be developed by 
     a designated officer within DHS, to be selected by the 
     Secretary from among the Administrator of FEMA, the Assistant 
     Secretary of Infrastructure Protection, and the Under 
     Secretary for Science and Technology, in consultation with 
     appropriate private sector parties designated in the 
     legislation.
       As recommended by the 9/11 Commission, through this 
     section, the Department of Homeland Security will be 
     promoting private-sector preparedness of which the 9/11 
     Commission said: ``Private sector preparedness is not a 
     luxury; it is a cost of doing business in the post-9/11 
     world.''
     Section 902. Responsibilities of the Private Sector Office of 
         the Department
       There is no comparable House provision.
       Section 802 of the Senate bill amends section 102(f) of the 
     Homeland Security Act to add promoting to the private sector 
     the adoption of voluntary national preparedness standards to 
     the responsibilities of the Special Assistant to the 
     Secretary. It also establishes a new responsibility for the 
     private sector advisory councils: advising the Secretary on 
     private sector preparedness issues.
       The Conference substitute adopts the Senate provision with 
     minor modifications.

              TITLE X--CRITICAL INFRASTRUCTURE PROTECTION

     Section 1001. National Asset Database
       Section 902 of the House bill requires the Secretary of the 
     Department of Homeland Security (the Department or DHS) to 
     maintain two databases addressing critical infrastructure: 
     the National Asset Database and, as a subset, the National 
     At-Risk Database. To develop the National Asset Database and 
     the At-Risk Database, the Secretary will meet with a 
     consortium of national laboratories and experts. The 
     Secretary is required to annually update both databases and 
     remove assets and resources that are not verifiable or do not 
     comply with the database requirements. The Secretary will 
     also meet with the States and advise them as to the format 
     for submitting assets for the lists and notifying them as to 
     deficiencies before removing or omitting assets from the 
     lists. This provision also requires the Secretary to consult 
     the Databases for purposes of allocating various Department 
     grant programs and to provide an annual report to Congress on 
     the contents of the Databases.
       Section 1101 of the Senate bill requires the Secretary to 
     establish a risk-based prioritized list of critical 
     infrastructure and key resources that, if successfully 
     destroyed or disrupted through a terrorist attack or natural 
     catastrophe, would cause catastrophic national or regional 
     impacts. The list must be reviewed and updated at least 
     annually. The provision also requires an annual report 
     summarizing the construction and contents of the list. The 
     report may include a classified annex.
       The Conference substitute adopts the House provision with 
     certain modifications. The Conferees determined that there is 
     a uniform manner by which to compile the country's vital 
     assets and to prioritize those assets, as called for in 
     Homeland Security Presidential Directive-7. This process will 
     enable a more effective cooperation with State and local 
     governments and provide a means by which the appropriate 
     Congressional Committees may annually review the prioritized 
     list as well as receive a report about the database and list.
       The Conference substitute modifies the House provision to 
     require the Secretary to maintain a prioritized critical 
     infrastructure list, as called for in the Senate bill, 
     instead of the National At-Risk Database. Furthermore, the 
     Conference substitute authorizes the Secretary to form an 
     optional consortium to advise on the Database, but did not 
     make the formation of such a consortium mandatory.
     Section 1002. Risk assessments and report
       Section 901 of the House bill requires the Secretary to 
     prepare a vulnerability assessment of the critical 
     infrastructure information available to the Secretary with 
     respect to that fiscal year, unless a vulnerability 
     assessment is required under another provision of law. The 
     Secretary must provide annual comprehensive reports on 
     vulnerability assessments for all critical infrastructure 
     sectors established in Homeland Security Presidential 
     Directive-7. This provision requires the Secretary to provide 
     the appropriate Congressional Committees with a summary 
     vulnerability report and a classified annex for each industry 
     sector. This provision also requires the Department to 
     provide a summary report from the preceding two years to 
     compare with the current report to show any changes in 
     vulnerabilities and provide explanations and comments on 
     greatest risks to critical infrastructure for each sector and 
     any recommendations for mitigating these risks.
       Section 1102 of the Senate bill requires the Secretary, for 
     each fiscal year, to prepare a risk assessment of the 
     critical infrastructure and key resources of the United 
     States. It requires that the risk assessment be organized by 
     sector and that it contain any actions or countermeasures 
     proposed, recommended, or directed by the Secretary to 
     address security concerns covered in the assessment. It 
     enables the Secretary to rely upon other assessments prepared 
     by another Federal agency that the Department determines are 
     prepared in coordination with other initiatives of the 
     Department relating to critical infrastructure or key 
     resource protection. It also requires the Secretary to submit 
     an annual report to the relevant Congressional Committees 
     that contains a summary and review of the risk assessments 
     prepared by the Secretary for that year. The report will be 
     organized by sector and will include the Secretary's 
     recommendations for mitigating risks identified by the 
     assessments.
       The Conference substitute adopts a compromise provision by 
     eliminating the requirement for the Secretary to conduct risk 
     assessments under this section because those same assessments 
     are required to be conducted under the Homeland Security Act. 
     The Conference substitute requires the Secretary to provide a 
     report on the comprehensive risk assessments on critical 
     infrastructure that the Department is already required to 
     conduct under the Homeland Security Act.

[[Page 20732]]

       Further, the Conference desires that, if appropriate, the 
     report or reports be furnished in a public form with a 
     classified annex. Furthermore, the Conference intends that 
     the classification of information required to be provided to 
     Congress or shared between the Department and any other 
     sector-specific department or agency pursuant to this new 
     paragraph, including the assignment of a level of 
     classification of such information, shall be binding on 
     Congress, the Department, and any other Federal Department or 
     Agency. With regard to these assessments, the Homeland 
     Security Act requires the Secretary to conduct the 
     assessments with respect to the nation's critical 
     infrastructure and key resources. The Conference intends for 
     the Secretary to exercise his responsibilities under the 
     Homeland Security Act and make a timely report to Congress. 
     Through this section, the Conference does not intend to make 
     any changes to the Secretary's authority under section 201 of 
     the Homeland Security Act. The section requires the Secretary 
     to submit a set of reports to the Senate Committee on 
     Homeland Security and Governmental Affairs and the House of 
     Representatives Committee on Homeland Security as well as 
     other appropriate Congressional Committees containing a 
     summary and review of the assessments prepared by the 
     Secretary, as already required by the Homeland Security Act.
     Section 1003. Sense of Congress regarding the inclusion of 
         levees in the National Infrastructure Protection Plan
       There is no comparable House provision.
       Section 1101 of the Senate bill requires the Secretary to 
     include levees in the Department's list of critical 
     infrastructure sectors.
       The Conference substitute adopts the Senate provision, 
     while modifying it so that it is the sense of Congress that 
     the Secretary should ensure that levees are included in one 
     of the critical infrastructure and key resource sectors 
     identified in the National Infrastructure Protection Plan.

               TITLE XI--BIOLOGICAL AND NUCLEAR DETECTION

     Section 1101. National Biosurveillance Integration Center
       There is no comparable House provision. However, the House 
     passed, on a bipartisan basis, a very similar provision as 
     part of H.R. 1684, ``the Department of Homeland Security 
     Authorization Act for Fiscal Year 2008.''
       Section 701 of the Senate bill provides for the 
     authorization of a National Biosurveillance Integration 
     Center (NBIC) within the Department of Homeland Security (the 
     Department or DHS). The primary mission of the NBIC is to 
     enhance the situational awareness of the Federal Government 
     of intentional and naturally occurring biological incidents 
     of national concern, and to rapidly alert Federal, State and 
     local entities of such incidents.
       The Conference substitute adopts the Senate provision, with 
     technical modifications.
       In order to best achieve its mission, the Conference 
     directs that NBIC Member Agencies to send all information 
     that could indicate a biological incident of national 
     concern, including protected health information from member 
     agencies which are Public Health Authorities as defined by 
     the Health Insurance Portability and Accountability Act of 
     1996, Public Law 104-191, to the NBIC.
     Section 1102. Biosurveillance efforts
       There is no comparable House provision.
       Section 702 of the Senate bill requires the Comptroller 
     General of the United States to report to Congress on 
     Federal, State, and local biosurveillance efforts, any 
     duplication of such efforts, and recommendations on 
     integration of systems and effective use of resources and 
     professional expertise.
       The Conference substitute adopts the Senate provision, with 
     technical modifications.
     Section 1103. Interagency coordination to enhance defenses 
         against nuclear and radiological weapons of mass 
         destruction
       There is no comparable House provision.
       Section 703 of the Senate bill requires the Secretaries of 
     Homeland Security, State, Defense, Energy, the Attorney 
     General and the Director of National Intelligence to jointly 
     ensure interagency coordination on the development and 
     implementation of the global nuclear detection architecture 
     by completing a joint annual interagency review of matters 
     relating to the global nuclear detection architecture, which 
     shall be submitted to the President and the appropriate 
     Congressional Committees.
       The Conference substitute adopts the Senate provision, with 
     technical modifications.
     Section 1104. Integration of detection equipment and 
         technologies
       There is no comparable House provision.
       Section 1607 of the Senate bill requires the Secretary of 
     Homeland Security to ensure that chemical, biological, 
     radiological, and nuclear detection equipment and 
     technologies are integrated as appropriate with other border 
     security systems and detection technologies, and requires the 
     Secretary to develop a departmental technology assessment 
     process and report the process to Congress within 6 months of 
     enactment.
       The Conference substitute adopts the Senate provision, as 
     engrossed by the Senate.

  TITLE XII--TRANSPORTATION SECURITY PLANNING AND INFORMATION SHARING

     Section 1201. Definitions
       The Conference substitute includes a provision which 
     defines the terms ``Department'' and ``Secretary'' for the 
     purposes of this title.
     Section 1202. Transportation security strategic planning
       Section 1002 of the House bill requires the Department of 
     Homeland Security (the Department or DHS) to include 
     additional information in subsequent submissions of the 
     National Strategy for Transportation Security. It requires 
     DHS to tie the risk-based priorities identified in the 
     Strategy to the risk assessments conducted by DHS; to 
     coordinate the development of the Strategy with Federal, 
     State, regional, local and tribal authorities and 
     transportation system employees; and to tie the budget and 
     research and development to the priorities in the Strategy. 
     It also requires DHS to build into the Strategy a more 
     intermodal perspective for transportation security.
       Section 901 of the Senate bill is a comparable provision.
       The Conference substitute adopts modified language from 
     both bills. The Conference would like to clarify that the 
     information required by the periodic progress reports, on the 
     turnover among senior staff of the Department (and any 
     component agencies) working on transportation security 
     issues, includes program managers responsible for 
     transportation security programs, at the GS-13 level or its 
     equivalent, as well as their immediate supervisors and other 
     superiors, up to and including Assistant Secretaries or Under 
     Secretaries.
     Section 1203. Transportation security information sharing
       Section 1001 of the House bill improves transportation 
     security information between the public and private sectors 
     by requiring the establishment of a Transportation Security 
     Information Sharing Plan. It also requires the Department to 
     provide a semiannual report to Congress identifying the 
     persons who receive transportation security information.
       Section 902 of the Senate bill is a comparable provision, 
     which also requires the plan be developed in consultation 
     with the program manager of the Information Sharing 
     Environment established under the Intelligence Reform and 
     Terrorism Prevention Act of 2004. This section further 
     requires that DHS establish a point or points of contact 
     within the Department for distributing transportation 
     security information to public and private stakeholders.
       The Conference substitute adopts the Senate provision, as 
     modified.
     Section 1204. National Domestic Preparedness Consortium
       There is no comparable House provision.
       Section 1429 of the Senate bill requires the Secretary of 
     Homeland Security (the Secretary) to develop guidance for a 
     rail worker security training program. Section 1505 of the 
     Senate bill requires the Secretary to issue regulations for a 
     public transportation worker training program. Section 202 of 
     the Senate bill authorizes the Secretary to establish a State 
     Homeland Security Grant Program and an Urban Area Security 
     Initiative grant program which allows States and localities 
     to apply for grants from DHS for the purpose of training 
     first responders.
       The Conference substitute authorizes the establishment of 
     the National Domestic Preparedness Consortium, which has been 
     responsible for identifying, developing, testing and 
     delivering training to State, local, and tribal emergency 
     response providers. The Conference substitute further 
     authorizes an expansion of the Consortium to include the 
     National Disaster Preparedness Training Center and the 
     Transportation Technology Center, Incorporated, to assist 
     with providing security training to emergency responders and 
     transportation workers.
       In addition, the Conference substitute authorizes specific 
     funding levels for the individual members of the Consortium 
     that are intended to provide a baseline to determine future 
     funding needs. However, the Conference does not believe that 
     these authorized amounts should serve as artificial barriers 
     to increased funding levels should greater increases be 
     necessary and possible. The Conference recognizes the 
     importance of the ongoing training at the National Domestic 
     Preparedness Consortium, expects that the two new members 
     will be able to provide unique training opportunities, and 
     that by authorizing and expanding the Consortium the 
     Department will be able to train even more of our Nation's 
     emergency responders and transportation workers.
     Section 1205. National Transportation Security Center of 
         Excellence
       There is no comparable House provision.
       Section 1425 of the Senate bill requires the Secretary to 
     carry out a research and development program for the purpose 
     of improving freight rail and intercity passenger rail 
     security. Section 1507 of the Senate bill requires the 
     Secretary to award grants or contracts for research and 
     development of technologies and methods to improve security 
     for public transportation systems. Section 1467 of the Senate 
     bill extends the authorization for the Secretary to carry out 
     research and development for aviation security, until 2009.
       The Conference substitute authorizes the establishment of a 
     National Transportation

[[Page 20733]]

     Security Center of Excellence to conduct research and 
     development and education activities, and develop or provide 
     training to transportation employees or professionals.
     Section 1206. Civil immunity for reporting suspicious 
         activity
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference recognizes that the general public often 
     provides critical assistance to law enforcement in its 
     efforts to disrupt terrorist activity against the homeland. 
     The Conference substitute adopts this section to address the 
     potential chilling effect of lawsuits filed against members 
     of the public who reported what they reasonably considered to 
     be suspicious activity to appropriate personnel.
       The Conference substitute adopts language granting civil 
     immunity to those who, in good faith and based on objectively 
     reasonable suspicion, report ``covered activity'' to an 
     ``authorized official.'' The term ``covered activity'' is 
     defined as suspicious activity indicating that a person is 
     preparing to or may be violating the law in a way that 
     threatens a passenger transportation system, passenger 
     safety, or passenger security or that involves an act of 
     terrorism. The suspicious activity must involve or be 
     directed against a passenger transportation system. An 
     authorized official is defined as any employee or agent of a 
     passenger transportation system or other persons with 
     responsibilities relating to the security of such systems. It 
     also includes anyone working for or on behalf of the 
     Departments of Homeland Security, Transportation or Justice 
     who have responsibilities relating to the security of 
     passenger transportation systems as well as any Federal, 
     State, or local law enforcement officer. Persons who make 
     false reports or who make a report with reckless disregard 
     for the truth are not entitled to civil immunity under this 
     section.
       The Conference substitute also grants qualified civil 
     immunity to any authorized official who takes reasonable 
     action to respond to a report of covered activity. An 
     authorized official not entitled to assert the defense of 
     qualified immunity is nevertheless immune from civil 
     liability under Federal,
       State or local law. The Conference intends to provide civil 
     immunity to anyone within the chain of reporting who 
     reasonably responds in good faith to the covered activity. 
     However, the Conference does not intend to amend, limit, or 
     reduce existing qualified immunity or other defenses pursuant 
     to Federal, State, or local law that may otherwise be 
     available to authorized officials as defined by this section. 
     To address this concern the Conference substitute includes a 
     savings clause that states that nothing in the section shall 
     affect the ability of any authorized official to assert any 
     defense, privilege, or immunity that would otherwise be 
     available. The savings clause also reiterates that this 
     section is not intended to affect any such defense, privilege 
     or immunity.
       The Conference substitute also allows any person or 
     authorized official who is found to be immune from civil 
     liability under this section to recover reasonable costs and 
     attorneys fees should they be named as a defendant in a civil 
     suit. It defines a ``passenger transportation system'' as 
     public transportation, over-the-road bus transportation, 
     including school bus transportation, intercity rail 
     transportation, passenger vessels, including passenger and 
     automobile ferries, and air transportation. Finally, the 
     Conference substitute states that this section takes effect 
     as of October 1, 2006 and shall apply to all activities and 
     claims arising on or after that date.

            TITLE XIII--TRANSPORTATION SECURITY ENHANCEMENTS

     Section 1301. Definitions
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute defines several terms used within 
     this title.
     Section 1302. Enforcement authority
       There is no comparable House provision.
       Section 1432 of the Senate bill expands the Transportation 
     Security Administration's (TSA) existing administrative civil 
     penalty authority to authorize civil penalties and 
     enforcement of regulations and orders of the Secretary of 
     Homeland Security (the Secretary) relating to non-aviation 
     security. Under this section, the Secretary must give written 
     notice of the finding of a violation and the penalty, and the 
     penalized person has the opportunity to request a hearing on 
     the matter. This section also provides that, in a civil 
     action to collect such a penalty, the issues of liability and 
     the amount of the penalty may not be reexamined; it places 
     exclusive jurisdiction for these actions in the Federal 
     district courts in certain instances; and it establishes 
     ceilings for the penalty amounts the Secretary may 
     administratively impose.
       The Conference substitute adopts the Senate provision with 
     minor changes, including a provision that requires the 
     Secretary to make publicly available summaries of enforcement 
     actions taken and a report on the Department's enforcement 
     process. The Conference substitute limits this administrative 
     enforcement authority as it relates to fines and civil 
     penalties against public transportation agencies and 
     violations of administrative and procedural requirements 
     related to the transportation security grant programs of this 
     Act through section 1304 of the Conference substitute.
     Section 1303. Visible Intermodal Prevention and Response 
         Teams
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute authorizes the existing 
     Transportation Security Administration (TSA) practice of 
     deploying security teams, known as Visible Intermodal 
     Prevention and Response teams (VIPR), to augment the security 
     of any mode of transportation. This provision authorizes the 
     Secretary to determine, consistent with ongoing security 
     threats, when a VIPR team should be deployed and for what 
     duration, in coordination with local law enforcement. The 
     provision also allows the Secretary to use any asset of the 
     Department, including Federal Air Marshals, Surface 
     Transportation Security Inspectors, canine detection teams, 
     and advanced screening technology as part of VIPR teams. 
     Under this section, the Secretary would be required to 
     consult with local law enforcement and security officials and 
     transportation entities directly affected by VIPR 
     deployments, prior to and during deployments of VIPR teams to 
     ensure coordination and operation protocols. This section 
     authorizes such sums as necessary annually from FY 2008-2011 
     to cover costs associated with the VIPR program.
     Section 1304. Surface Transportation Security Inspectors
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute authorizes the existing 
     Transportation Security Administration (TSA) Surface 
     Transportation Security Inspectors (STSIs) program and 
     includes language addressing the mission and authorities of 
     the inspectors, requiring coordination and consultation with 
     the Department of Transportation (DOT) and affected entities, 
     and providing limitations regarding the issuance of fines and 
     civil penalties against public transportation agencies and 
     for violations of administrative and procedural requirements 
     of the Act. Additionally, the Conference substitute requires 
     the Secretary to increase the number of STSIs employed by 
     TSA, up to a level of 200 STSIs in FY 2010 and FY 2011, and 
     requires the DHS Inspector General to issue a report to the 
     appropriate Congressional Committees regarding the 
     performance and effectiveness of STSIs, the need for 
     additional inspectors, and other recommendations. The 
     provision also authorizes the following amounts for the STSI 
     program: $11.4 million for FY 2007, $17.1 million for FY 
     2008, $19.95 million for FY 2009 and $22.8 million for FY 
     2010 and 2011, respectively.
       The Secretary and the STSIs should use fines and civil 
     penalties as a last recourse to achieve public transportation 
     agency compliance with DHS security regulations only when 
     other reasonable methods of gaining compliance have not 
     produced adequate results. If a public transportation agency 
     fails to correct a violation or to propose an alternative 
     means of compliance acceptable to the Secretary, then the 
     Secretary may issue fines or civil penalties under section 
     1302 of the Conference substitute. Additionally, the 
     provision restricts the Secretary or STSIs from issuing fines 
     and civil penalties for violations of administrative and 
     procedural requirements related to the application and use of 
     funds awarded under the transportation security grant 
     programs in this Act. However, the Conference does not 
     consider fraud, gross misuse of grant funds, or any criminal 
     conduct related to the application for or use of grant funds 
     awarded under this Act to be administrative requirements and, 
     therefore, those acts will not be shielded from fines or 
     civil penalties issued by the Secretary.
     Section 1305. Surface transportation security technology 
         information sharing
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a new provision that would 
     require the Secretary, in consultation with the Secretary of 
     Transportation, to establish a program to provide appropriate 
     information that the Department has gathered or developed on 
     the performance, use, and testing of technologies that may be 
     used to enhance railroad, public transportation, and surface 
     transportation security to surface transportation entities 
     and State, local, and tribal governments that provide 
     security assistance to such entities. The purpose of the 
     program is to assist eligible grant recipients under this Act 
     and others, as appropriate, to purchase and use the best 
     technology and equipment available to meet the security needs 
     of the Nation's surface transportation system.
       The provisions allow the Secretary to include in such 
     information whether the technology is designated as a 
     qualified antiterrorism technology under the SAFETY Act, as 
     appropriate, and requires the Secretary to ensure that the 
     program established under this section makes use of and is 
     consistent with other Department technology testing, 
     information sharing, evaluation, and standards-setting 
     programs, as appropriate.
     Section 1306. TSA personnel limitations
       There is no comparable House provision.

[[Page 20734]]

       Section 1451 of the Senate bill provides that any statutory 
     limitation on the number of Transportation Security 
     Administration employees shall not apply to employees 
     carrying out this title.
       The Conference substitute adopts the Senate provision as it 
     applies to this title and titles XII, XIV, and XV of the 
     Conference substitute.
     Section 1307. National Explosives Detection Canine Team 
         Training Program
       There is no comparable House provision.
       Section 1476 of the Senate bill directs the Secretary to 
     enhance the National Explosive Detection Canine Team Program 
     and maximize canine training capacity so that up to 200 
     additional dogs can be certified each year, starting at the 
     end of calendar year 2008. The Secretary would be given 
     flexibility across transportation modes to use as needed and 
     deemed necessary. The provision encourages the Secretary to 
     review potential benefits of establishing new canine training 
     partnerships throughout the United States.
       The Conference substitute adopts the Senate provision as 
     modified. The modified provision requires the Secretary to 
     increase the number of explosives detection canine teams 
     certified by the TSA for the purposes of transportation-
     related security by up to 200 canine teams annually by the 
     end of 2010 and encourage State, local, and tribal 
     governments and private owners of high-risk transportation 
     facilities to strengthen security through the use of highly 
     trained explosives detection canine teams.
       To increase the number of explosives detection canine 
     teams, the Secretary shall use a combination of methods 
     including the use and expansion of TSA's National Explosives 
     Detection Canine Team Training Center; partnering with other 
     Federal, State, or local agencies, nonprofit organizations, 
     universities, or the private sector; and procuring explosives 
     detection canines trained by nonprofit organizations, 
     universities, or the private sector, provided they are 
     trained in a manner consistent with the standards and 
     requirements developed pursuant to this section or other 
     criteria developed by the Secretary.
       The Secretary is also required to establish criteria that 
     include canine training curricula, performance standards, and 
     other requirements approved by TSA as necessary to ensure 
     that explosives detection canine teams trained by nonprofit 
     organizations, universities, and private sector entities are 
     adequately trained and maintained. In developing and 
     implementing such curricula, performance standards, and other 
     requirements, the Secretary would be required to coordinate 
     with key stakeholders to develop best practice guidelines for 
     such a standardized program; ensure that explosives detection 
     canine teams trained by nonprofit organizations, 
     universities, or private sector entities that are used or 
     made available by the Secretary be trained consistent with 
     specific training criteria developed by the Secretary; and 
     review the status of the private sector programs on at least 
     an annual basis to ensure compliance with training curricula, 
     performance standards, and other requirements.
       The Conference substitute also requires the Secretary to 
     use the additional explosives detection canine teams as part 
     of the Department's efforts to strengthen security across the 
     Nation's transportation network. The Secretary may use the 
     canine teams on a more limited basis to support other 
     homeland security missions, as determined appropriate. The 
     Secretary is also required to make available explosives 
     detection canine teams to all modes of transportation, for 
     high-risk areas or to address specific threats, on an as-
     needed basis and as otherwise determined appropriate by the 
     Secretary and shall encourage, but not require, 
     transportation facilities or systems to deploy TSA-certified 
     explosives detection canine teams.
       The Conference substitute requires the Secretary, acting 
     through the TSA Administrator, to ensure that explosives 
     detection canine teams are procured as efficiently as 
     possible and at the best price using available procurement 
     methods and increased domestic breeding, if appropriate. 
     Additionally, the Comptroller General is required to report 
     to the appropriate Congressional Committees on the 
     utilization of explosives detection canine teams to 
     strengthen security and the capacity of the national 
     explosive detection canine team program. Finally, the 
     Conference substitute authorizes such sums as may be 
     necessary to carry out this section for Fiscal Years 2007 
     through 2011.
       The Conferees note that the definition of ``explosives 
     detection canine team'' as a ``canine and a canine handler 
     that are trained to detect explosives, radiological 
     materials, chemical, nuclear or biological weapons, or other 
     threats as defined by the Secretary'' is intended to ensure 
     that individual canine teams that are trained to detect any 
     of these specific materials listed are eligible under this 
     section. The Conferees recognize that explosives detection 
     canines are not trained to additionally detect chemical, 
     nuclear or biological weapons and that, at present, such 
     teams cannot detect radiological materials. Further, the 
     Conferees recognize that canines are trained to detect 
     specific threats and cannot, at this time, effectively be 
     crossed-trained to identify multiple threats. In requiring 
     the TSA to develop canine training curriculum and performance 
     standards under this section, the Conferees expect TSA to do 
     so for those threats within the definition that are currently 
     applicable to canine team detection. However, the Conferees 
     trust that TSA will explore opportunities to train and/or 
     acquire canines that are able to detect new and emerging 
     threats, such as chemical, radiological, nuclear and 
     biological weapons. To that end, the Conferees expect that 
     prior to developing and distributing canine training 
     curriculum and performance standards under this section, TSA 
     will fully vet any ongoing training, whether domestic or 
     international, that has a proven method to successfully 
     detect those additional threats that may not currently be 
     applicable to TSA-trained canines.
     Section 1308. Maritime and surface transportation security 
         user fee study
       There is no comparable House provision.
       Section 1452 of the Senate bill requires the Secretary to 
     study the need for, and feasibility of, establishing a system 
     of maritime and surface transportation-related user fees that 
     may be imposed and collected to fund maritime and surface 
     transportation security improvements. In developing the 
     study, the Secretary would be directed to consult with 
     maritime and surface transportation carriers, shippers, 
     passengers, facility owners and operators, and other persons. 
     The study would include an assessment of current security-
     related fees in the United States, Canada, and Mexico; an 
     analysis of the impact of fees on transportation carriers and 
     shippers; and an evaluation of current private and public 
     sector expenditures on maritime and surface transportation 
     security. Within 1 year after the date of enactment, the 
     Secretary would be required to transmit a report to Congress 
     on the results of the study.
       The Conference substitute adopts the Senate provision with 
     minor modifications.
     Section 1309. Transportation Worker Identification Credential 
         (TWIC)
       There is no comparable House provision.
       Sections 1454 and 1455 of the Senate bill codify the 
     existing regulatory prohibitions against the issuance of 
     transportation security cards to certain convicted felons.
       The Conference substitute adopts the Senate provision, with 
     minor modifications, codifying the existing regulatory 
     prohibitions against the issuance of transportation security 
     cards to certain convicted felons. Nothing in this section is 
     intended to change the waiver and appeal rights afforded to 
     workers in 70105 of title 46. In fact, the Conferees expect 
     that as the Secretary moves to implement the TWIC program, 
     workers will have their waiver and appeal cases decided 
     expeditiously and that a sufficient number of administrative 
     law judges will be available to adjudicate these cases.
     Section 1310. Roles of the Department of Homeland Security 
         and the Department of Transportation
       There is no comparable House provision.
       Sections 1421, 1425, 1435, 1441, 1442, 1444, 1448, 1449, 
     1445, 1503 and 1506 of the Senate bill require the Secretary 
     of Homeland Security to consult, coordinate, or work with the 
     Secretary of Transportation in the implementation of the 
     requirements of the sections. Section 1443 of the Senate bill 
     further requires the Department of Homeland Security and the 
     Department of Transportation to execute and develop an annex 
     to the Memorandum of Understanding between the Departments 
     signed on September 28, 2004, governing the specific roles, 
     delineations of responsibilities, resources and commitments 
     of the Department of Transportation and the Department of 
     Homeland Security, respectively, in addressing motor carrier 
     transportation security matters.
       The Conference substitute includes a provision which 
     affirms and clarifies the current delineation of the roles 
     and responsibilities of Department of Homeland Security and 
     the Department of Transportation related to carrying out the 
     provisions of this Act related to transportation security.

               TITLE XIV--PUBLIC TRANSPORTATION SECURITY

     Section 1401. Short title
       There is no comparable House provision.
       Section 1501 of the Senate bill cited the short title as 
     ``The Public Transportation Terrorism Prevention Act of 
     2007.''
       The Conference Substitute adopts a compromise provision, 
     providing that this title may be cited as ``The National 
     Transit Systems Security Act of 2007.''
     Section 1402. Definitions
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a definition section in an 
     effort to clarify terms used in Title XIV of the bill.
     Section 1403. Findings
       There is no comparable House provision.
       Senate Section 1502 finds that public transit is a top 
     target of terrorism worldwide, that the Federal Government 
     has invested significant sums in creating and maintaining the 
     nation's transit infrastructure, that transit is heavily used 
     and that the current Federal investment in security has been 
     insufficient and greater investment is warranted.
       The Conference substitute adopts the Senate findings as 
     modified.

[[Page 20735]]


     Section 1404. National strategy for public transportation 
         security
       There is no comparable House provision.
       The Senate bill does not require an additional strategy for 
     transit beyond the modal requirements in Title XII.
       The Conference substitute adopts the Senate provision with 
     modifications. The purpose of the strategy is to minimize 
     security threats and maximize the abilities of public 
     transportation systems to mitigate damage that may result 
     from terrorist attacks. The Secretary of Homeland Security 
     (the Secretary) is required to use established and ongoing 
     public transportation security assessments and consult with 
     all relevant stakeholders that are specified in the 
     legislation in developing a national strategy.
     Section 1405. Security assessments and plans
       There is no comparable House provision.
       Section 1503 of the Senate bill requires the Federal 
     Transit Administration of the Department of Transportation to 
     submit all public transportation security assessments and 
     other relevant information to the Secretary 30 days after the 
     date of enactment. The Secretary is also required to use the 
     security assessments received as the basis for allocating 
     grant funds, unless the Secretary notified the Senate 
     Committee on Banking, Housing, and Urban Affairs that the 
     Secretary determined an adjustment is necessary to respond to 
     an urgent threat or other significant factors.
       The Senate provision requires the Secretary to conduct both 
     annual updates to the existing assessments and new security 
     assessments of all public transportation agencies considered 
     to be at greatest risk of a terrorist attack. In addition, 
     the Secretary is required to establish a process for 
     developing security guidelines for public transportation 
     security and to design a security improvement strategy that 
     minimizes terrorist threats to public transportation systems, 
     and maximizes the efforts of public transportation systems to 
     mitigate damage from terrorist attacks. It also requires the 
     Secretary to conduct security assessments, appropriate to the 
     size and nature of each system, to determine the specific 
     needs of bus-only and rural transit systems.
       The Conference substitute adopts the requirements included 
     in the Senate bill with modification. It requires the Federal 
     Transit Administration and the Department of Transportation 
     to transfer all existing security assessments as well as any 
     other relevant information to the Department of Homeland 
     Security (the Department or DHS). It also requires the 
     Secretary to review and augment the assessments and to 
     conduct additional assessments as necessary to ensure that, 
     at a minimum, all high-risk public transportation agencies 
     will have a completed security assessment. The Conference 
     substitute further specifies that each completed assessment 
     should include, at a minimum, an identification of critical 
     assets, infrastructure and systems and their vulnerabilities 
     and an identification of any other security weaknesses, 
     including weaknesses in emergency response planning and 
     employee training. The Conference substitute adopts the 
     Senate's provisions addressing bus-only and rural transit 
     systems with a clarification that these assessments are meant 
     to be representative of the needs of these systems and shall 
     be made available for use by similarly situated systems.
       The Conference substitute adopts provisions related to 
     mandatory security plans. All high-risk systems will be 
     required to have a security plan provided they receive grant 
     funding. However, the Conference agreed to provide the 
     Secretary a waiver of that provision in order that he may 
     require a security plan for a high-risk system that has not 
     received grant funding, provided that upon issuance of that 
     waiver, the Secretary, not less than three days after making 
     that determination, provides Congress and the public 
     transportation system written notice detailing the need for 
     the security plan, the reason grant funding has not been made 
     available and the reason the agency has been designated high-
     risk. The Secretary is required to provide guidance on 
     developing, preparing and implementing these plans. 
     Developing security plans is an eligible expense for funds 
     received under this Title. The security plans must be 
     consistent with the security assessments developed by the 
     Department and the National Strategy for Public 
     Transportation Security. The Secretary is authorized to 
     establish a program to develop security plans for systems 
     that are not designated at high-risk, provided that no such 
     system may be required to develop a plan. Security plans are 
     required to be updated annually, as appropriate.
       The Conference substitute also includes language on 
     nondisclosure of information, encouraging coordination among 
     different modes of transportation to the extent they share 
     facilities, and allowing public transportation agencies to 
     petition the Secretary to recognize existing protocols, 
     procedures and standards as meeting all or part of the 
     requirements for security assessments or plans.
     Section 1406. Public transportation security assistance
       There is no comparable House provision.
       Section 1504 of the Senate bill created two separate grant 
     programs, one for capital expenses and another for operating 
     expenses. The Senate bill required coordination with State 
     homeland security plans and appropriate consideration of 
     multi-State transportation systems, along with Congressional 
     notification prior to grant awards and the requirement that 
     transit agencies return any misspent grant funds.
       The Conference substitute adopts the Senate provision with 
     modifications. The Conference substitute establishes a single 
     grant program that awards grants directly to eligible public 
     transportation agencies for security improvements. A public 
     transportation agency is eligible if the Secretary has 
     performed a security assessment or the agency has developed a 
     security plan. Grant funds provided under this program may 
     only be awarded for permissible uses described in this 
     section that address items in a security assessment or 
     further the agency's security plan.
       The Conference agrees that the grants should be awarded 
     pursuant to an agreement between the Departments of Homeland 
     Security and Transportation. These two Departments are 
     required to make their determination on the basis of what is 
     the most efficient and effective method to deliver these 
     grants directly to the transit agencies. The Conference 
     expects that the delivery system chosen will reflect the 
     system that meets these criteria. We note that there have 
     been some concerns with the efficiency, efficacy and 
     timeliness of the disbursal of these grants and believe that 
     it is critical that the Secretaries reach a decision that 
     will provide for these grants to be distributed as 
     efficiently, effectively and quickly as possible. The 
     Conference substitute in Section 1406(e) declares that all 
     requirements of Section 5307 of Title 49 shall be applied to 
     the recipients of these grant funds. Whichever Department 
     distributes and awards the grants will have to be responsible 
     for ensuring that those requirements are met.
       The Conference substitute also includes a list of eligible 
     capital expenses and separately, a list of eligible operating 
     expenses for the distribution of grant funds, and retains 
     Senate language addressing coordination with State homeland 
     security plans, multi-state transportation systems, 
     Congressional notification and the requirement that transit 
     systems return any misspent grant funds.
       The Conference substitute includes authorization levels for 
     each year, although the overall amount of $3.5 billion was 
     similar to the Senate bill. In addition, the Conference 
     substitute includes a structure that caps the amount of funds 
     that can be used for operational expenses each year of the 
     authorization, declining from 50 percent in Fiscal Year 2008 
     to 10 percent in 2011. The Conference expects that training 
     costs will be the predominant use of operating funds in the 
     first two years of the program which led to the decreasing 
     limitation on operating funds over the life of the bill. The 
     Conference substitute provides the Secretary with a waiver of 
     the limitation on operating expenses, provided such waiver is 
     used only in the interest of national security. Use of the 
     waiver requires Congressional notification, prior to any such 
     action. The Conference substitute also requires any funds 
     distributed under Public Law 110-28 to be allocated based on 
     risk and distributed solely to address security issues that 
     have already been identified in security assessments.
     Section 1407. Security exercises
       There is no comparable House provision.
       The Senate bill did not include a separate exercise 
     provision, although security exercises were an eligible 
     expense under the program, as shown in Section 1504(b).
       The Conference substitute adopts more specific language and 
     requirements for the Secretary to establish a program for 
     conducting security exercises. The program shall cover public 
     transportation agencies, Federal, State and local 
     governments, including emergency response providers and law 
     enforcement as well as any other organizations that the 
     Secretary determines are appropriate to include.
     Section 1408. Public transportation security training program
       There is no comparable House provision.
       Section 1505 of the Senate bill contains a transit security 
     training program detailing how the Secretary, in consultation 
     with appropriate officials, is required to develop and issue 
     detailed regulations for a public transportation worker 
     security training program. Public transportation agencies who 
     receive security funding must develop a comprehensive worker 
     training program and submit it to the Secretary for approval. 
     The Secretary must review the program and make necessary 
     revisions. No later than one year after the plan has been 
     established and reviewed, the public transportation agency 
     must complete the training of all workers. The Secretary is 
     required to report to Congress on the training program and 
     update it as necessary.
       The Conference substitute adopts the security training 
     program with modification. The Conference substitute requires 
     all public transportation systems that receive security 
     grants under this Title to train all frontline public 
     transportation employees and other workers, as appropriate. 
     The training requirement is for both initial and ongoing

[[Page 20736]]

     training for any agency that receives a security grant. The 
     Conference substitute requires the Secretary to issue 
     regulations, including interim final regulations, to 
     implement the training requirement. In developing these 
     regulations the Secretary must consult with appropriate law 
     enforcement, fire service security, terrorism experts, 
     representatives of public transportation systems and 
     nonprofit employee labor organizations representing public 
     transportation workers or emergency response personnel. 
     Public transportation agencies that receive security funding 
     must develop a comprehensive employee training program and 
     submit it to the Secretary for approval. The Secretary must 
     review the program and make necessary revisions. Not later 
     than one year after each public transportation agency's 
     training program has been established and reviewed, the 
     public transportation agency must complete the training of 
     all workers covered under the program. The Conference 
     substitute also includes a study to be conducted by the 
     Comptroller General on the implementation of the training 
     program, requiring a survey of transit agencies and 
     employees.
     Section 1409. Public transportation research and development.
       There is no comparable House provision.
       Section 1507 of the Senate bill includes a transportation 
     research and development section to establish, through the 
     Homeland Security Advanced Research Projects Agency, and in 
     consultation with the Federal Transit Administration, a 
     program to distribute grants or contracts to public and 
     private entities to conduct appropriate research into 
     technologies or methods of deterring and mitigating the 
     effects of terrorist attacks. The Secretary must report to 
     the Congress on the use of these funds and if the Secretary 
     determines that grant funds were misspent, the grantee shall 
     return grant funds to the Treasury of the United States.
       The Conference substitute adopts the Senate provision with 
     a modification to establish a research and development 
     program related to public transportation. The program will be 
     established through the Homeland Security Advanced Research 
     Projects Agency in the Science and Technology Directorate and 
     will consult with the Federal Transit Administration. Grants 
     and/or contracts will be awarded to public or private 
     entities to conduct research or demonstrate technologies and 
     methods to reduce and deter terrorist threats or to mitigate 
     damage resulting from an attack. The Conference substitute 
     also adopts language regarding privacy and civil rights and 
     the Senate language on reporting and misspent grant funds and 
     requires coordination with the priorities included in the 
     National Strategy for Public Transportation Security. The 
     Conference substitute authorizes $25,000,000 per year for 
     this program.
     Section 1410. Intelligence sharing
       There is no comparable House provision.
       The Senate bill, Section 1506, required the Secretary to 
     provide sufficient financial assistance for the reasonable 
     costs of the Information Sharing and Analysis Center for 
     Public Transportation (ISAC). All transit agencies would be 
     encouraged to participate in the ISAC and those that the 
     Secretary deemed to be at significant risk would be required 
     to participate. The imposition of fees was prohibited.
       The Conference substitute adopts the Senate proposal with 
     modification. It includes a report to be conducted by the 
     Comptroller General to examine the value and efficacy of the 
     ISAC along with any other public transportation information 
     sharing programs ongoing at the Department of Homeland 
     Security, including the Homeland Security Information Network 
     (HSIN) system. The Conference substitute also authorizes 
     specific dollar amounts for the ISAC for Fiscal Years 2008-
     2010 and such sums as necessary for 2011 provided the 
     Comptroller's report has been submitted to Congress.
     Section 1411. Threat assessments
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute requires the Secretary to 
     complete a name-based security background check of public 
     transportation front-line employees against the consolidated 
     terrorist watch list and an immigration status check, within 
     one year after the date of enactment, similar to the threat 
     assessment conducted by the U.S. Coast Guard with regard to 
     facility employees and longshoremen.
     Section 1412. Reporting requirements
       There is no comparable House provision.
       Section 1508 of the Senate bill includes a reporting 
     section that required the Secretary to submit a semi-annual 
     report to the Committee on Banking, Housing and Urban 
     Affairs, the Committee on Homeland Security and Governmental 
     Affairs and the Committee on Appropriations, on the 
     implementation of the capital and operational grant programs, 
     the use of funds and the State of public transportation 
     security in the United States. It further requires the 
     Secretary to submit an annual report regarding the amount and 
     use of grant funds to the Governor of each State with a 
     public transportation agency that has received a grant.
       The Conference substitute broadens the reporting 
     requirements included in the Senate bill to ensure that 
     Congress receives substantive, useful information regarding 
     public transportation security from the Department of 
     Homeland Security. To that end, the Conference substitute 
     includes an annual report to Congress, due on March 31st of 
     each year, that includes: a description of the implementation 
     of the provisions of Title XIV; the amount of funds 
     appropriated to carry out the title that have not been spent; 
     the National Strategy for Public Transportation Security; an 
     estimate of the costs to fully implement the National 
     Strategy for Public Transportation Security, to be broken out 
     for each Fiscal Year from 2008 through 2018; and the state of 
     public transportation security in the United States. The 
     Conference substitute maintains the Senate's requirement of 
     an annual report to the Governors.
     Section 1413. Whistleblower protection
       There is no comparable House provision.
       The Senate bill modifies existing whistleblower protections 
     for rail employees.
       The Conference substitute adopts protections for public 
     transportation employee whistleblowers, modeled on the 
     protections available to railroad employees under 49 U.S.C. 
     20109 as amended by this Act and aviation employees under 49 
     U.S.C. 42121.
     Section 1414. Security background checks of covered 
         individuals for public transportation
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision to ensure that 
     if the Secretary of Homeland Security requires or recommends 
     security background checks of public transportation 
     employees, adversely affected employees will have an adequate 
     redress process.
     Section 1415. Limitation on fines and civil penalties.
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute prohibits the Secretary and the 
     surface transportation security inspectors (STSI) from 
     issuing fines and civil penalties on public transportation 
     agencies except in certain circumstances.
       The Secretary and the STSIs should use fines and civil 
     penalties as a last recourse to achieve public transportation 
     agency compliance with DHS security regulations only when 
     other reasonable methods of gaining compliance have not 
     produced adequate results. If a public transportation agency 
     fails to correct a violation or to propose an alternative 
     means of compliance acceptable to the Secretary, then the 
     Secretary may issue fines or civil penalties under section 
     1302 of the Conference substitute. Additionally, the 
     provision restricts the Secretary or STSIs from issuing fines 
     and civil penalties for violations of administrative and 
     procedural requirements related to the application and use of 
     funds awarded under the transportation security grant 
     programs in this Act. However, the Conference does not 
     consider fraud, gross misuse of grant funds, or any criminal 
     conduct related to the application for or use of grant funds 
     awarded under this Act to be administrative requirements and, 
     therefore, those acts will not be shielded from fines or 
     civil penalties issued by the Secretary.

               TITLE XV--SURFACE TRANSPORTATION SECURITY

                     Subtitle A--General Provisions

     Section 1501. Definitions
       Section 1001 of the House bill contains several definitions 
     related to transportation security.
       Section 1411 of the Senate bill defines the term ``high 
     hazard materials.''
       The Conference substitute adopts definitions for terms 
     applicable to the title, including a new definition of 
     ``security-sensitive materials,'' which must be defined by 
     the Secretary of Homeland
       Security (the Secretary) through a rule making. The 
     Conference believes that completing the definition of 
     ``security-sensitive materials'' should be a high priority 
     for the Department of Homeland Security (the Department or 
     DHS), since the definition of this term is a pre-requisite 
     for the implementation of several other provisions within 
     this title.
     Section 1502. Oversight and Grant Procedures
       There is no comparable House provision.
       Section 1426 of the Senate bill authorizes the Secretary of 
     Homeland Security to enter into contracts to audit and review 
     grants awarded under the bill. The Secretary is required to 
     prescribe procedures and schedules for the awarding of grants 
     under this title, including application and qualification 
     procedures. In awarding grants, the Secretary may issue 
     letters of intent (LOI) to recipients of grants awarded under 
     this bill, as the Secretary may do now for aviation security 
     funding through the Transportation Security Administration 
     (TSA).
       The Conference substitute adopts the Senate provision as 
     modified. It requires the Secretary to establish procedures, 
     including those for monitoring and auditing to ensure that 
     grants are expended properly and for application and 
     qualification for grants. The provision also provides that 
     for grants awarded to Amtrak under this title, the Secretary 
     shall coordinate with the Secretary of the Department of 
     Transportation (DOT) in

[[Page 20737]]

     establishing necessary grant procedures. Additionally, the 
     provision permits either Department to enter into contracts 
     for additional audits and reviews of such grants to Amtrak.
       The Conference substitute also permits the Secretary of 
     Homeland Security to issue LOI's to grant recipients. The 
     Conference acknowledges that an LOI is not a commitment of 
     future funds by an agency. The Conference substitute requires 
     that grant recipients return any misspent funds and that the 
     Secretary take all necessary action to return such funds. It 
     also requires the Secretary to notify appropriate 
     Congressional Committees of its intent to award a grant. 
     Finally, the Conference substitute requires that the 
     Secretary ensure, to extent practicable, that grant 
     recipients use disadvantaged business concerns as contractors 
     or subcontractors.
     Section 1503. Authorization of Appropriations
       There is no comparable House provision.
       Section 1437 of the Senate bill authorizes appropriations 
     for the Secretary of Homeland Security for Fiscal Years 
     (FY's) 2008-2010 and for the Secretary of Transportation for 
     FY's 2008-2011 to carry out the activities required by the 
     Act.
       The Conference substitute adopts the Senate provision as 
     modified to reflect the authorization levels contained within 
     the sections of this title.
     Section 1504. Public Awareness
       There is no comparable House provision.
       Section 1434 of the Senate bill requires the Secretary of 
     Homeland Security, in consultation with the Secretary of 
     Transportation, within 90 days after the date of enactment of 
     this Act, to develop a national plan for improved public 
     outreach and awareness of measures that the general public, 
     railroad passengers, and railroad employees can take to 
     increase railroad system security. Not later than 9 months 
     after the date of enactment of this Act, the Secretary would 
     be directed to implement this plan.
       The Conference substitute adopts the Senate provision with 
     minor modifications, including adding over-the-road bus 
     security matters to the provision.

                     Subtitle B--Railroad Security

     Section 1511. Railroad Transportation Security Risk 
         Assessment and National Strategy
       There is no comparable House provision.
       Section 1421 of the Senate bill requires the Secretary of 
     Homeland Security to establish a task force comprised of the 
     Transportation Security Administration (TSA) and others to 
     complete a risk assessment of freight and passenger rail 
     transportation. It also requires the development of 
     recommendations for improving rail security based on the 
     required risk assessment and the establishment of plans to 
     address such recommendations. This section requires the 
     Secretary to report to the appropriate Congressional 
     Committees on the assessment, recommendation, plans and costs 
     to implement such recommendations. In addition, the Secretary 
     is required to include in the recommendations a plan for the 
     Federal government to provide security support at high threat 
     levels of alert; a plan for coordinating existing and planned 
     rail security initiatives undertaken by public and private 
     entities; and a contingency plan developed in conjunction 
     with intercity and commuter passenger railroads to ensure the 
     continued movement of freight and passengers in the event of 
     a terrorist attack. The provision authorizes $5 million for 
     Fiscal Year 2008 to carry out this section.
       The Conference substitute adopts the Senate provision, as 
     modified. The modified provision requires the Secretary to 
     establish a task force to complete a nationwide railroad 
     security risk assessment, including freight, intercity 
     passenger and commuter railroads. The Secretary may make use 
     of the Government Coordinating Council in the establishing of 
     the task force. Based upon this assessment, the Secretary is 
     required to develop a modal plan for railroad security, 
     entitled the ``National Strategy for Railroad Transportation 
     Security,'' which will serve as the general Federal strategy 
     for improving railroad security.
       In completing the assessment and the strategy required by 
     this section, the Conference does not intend for TSA and the 
     Department of Homeland Security to unnecessarily re-do 
     existing assessment and modal plan work, of sufficient 
     quality and relevance, already completed by the agency or 
     other Federal, private or public stakeholders. However, the 
     Conference expects any existing assessments and existing 
     modal plans used to be synthesized into a comprehensive and 
     coherent total assessment and strategy, not simply compiled 
     into a single document. The Conference substitute authorizes 
     $5 million for FY 2008 to carry out this section.
       The Conference notes its frustration with TSA's inability 
     to complete a comprehensive risk assessment and national 
     strategy for the railroad sector. The Conference believes 
     fulfillment of this section to be an absolute priority, so 
     that the results of the assessment may be used to guide the 
     ongoing rail security efforts and the new programs called for 
     in this Conference substitute.
     Section 1512. Railroad Carrier Assessments and Plans
       There is no comparable House provision.
       Section 1421 of the Senate bill requires the Secretary of 
     Homeland Security to establish a task force to complete a 
     risk assessment of freight and passenger rail transportation, 
     develop recommendations for improving rail security based on 
     the risk assessment, and establish plans to address such 
     recommendations.
       The Conference substitute adopts a provision addressing 
     railroad carrier risk assessments based upon elements of 
     Senate Section 1421. The provision would require that 
     railroad carriers assigned to a high-risk tier by the 
     Secretary complete a vulnerability assessment and develop 
     security plans to be approved by the Secretary. In addition, 
     the Secretary would be authorized to establish a program to 
     provide guidance and assistance for undertaking assessments 
     and security plans and a process by which such voluntary 
     assessments and plans may be approved by the Secretary for 
     railroad carriers not assigned to a high-risk tier.
     Section 1513. Railroad Security Assistance
       There is no comparable House provision.
       Section 1424 of the Senate bill authorizes the Secretary of 
     Homeland Security, in consultation with the TSA and other 
     entities, to make grants to freight railroads, the Alaska 
     Railroad, hazardous materials shippers, owners of rail cars 
     used to transport hazardous materials, institutions of higher 
     education, State and local governments, and Amtrak, for full 
     or partial reimbursement of costs incurred to prevent or 
     respond to acts of terrorism, sabotage, or other risks. The 
     Secretary would be required to adopt necessary procedures to 
     ensure that grants made under this section are expended in 
     accordance with the purposes of the Act. The Secretary awards 
     and distributes all grants under this provision, except for 
     grants to Amtrak which the Secretary can award, but the 
     Secretary of Transportation would distribute using the well-
     established DOT grant process which is used to distribute 
     Federal operating and capital grants Amtrak. This section 
     authorizes $100 million for the Department of Homeland 
     Security for each of Fiscal Years 2008 through 2010 to carry 
     out this section. Grants to Amtrak are limited to $45 million 
     over the authorization period and certain grants related to 
     hazardous materials rail security are limited to $80 million 
     in total over the authorization period.
       The Conference substitute adopts a modified version of the 
     Senate provision. The provision establishes a railroad 
     security grant program for railroads that have completed a 
     vulnerability assessment and security plan under Section 1513 
     of the Conference substitute for a permissible use identified 
     within the section. However, the Secretary has the discretion 
     during the first three years after the date of enactment of 
     the Act, or up until one year after the regulations are 
     issued under section 1513, to award grants based on 
     vulnerability assessments and security plans developed by 
     railroad carriers that do not meet the requirements of 
     Section 1513 if the Secretary finds such assessments and 
     plans sufficient. Additionally, grants can be awarded under 
     this provision to fully or partially fund the assessments and 
     plans required under Section 1513. The Conference includes 
     these provisions to ensure that eligible entities would be 
     authorized to receive grants funds under this section as soon 
     as possible upon enactment of the Conference substitute and 
     so that eligible entities could use grant funds to develop 
     the assessments and plans required under Section 1513 in a 
     timely fashion.
       The Conference substitute assigns the responsibility of 
     awarding and distributing grants to the Secretary, except for 
     grants to Amtrak which the Secretary can award, but which the 
     Secretary of Transportation would distribute using the well-
     established Department of Transportation grant process to 
     Amtrak. The Secretary of Homeland Security is also required 
     to report to the appropriate Congressional Committees on the 
     feasibility and appropriateness of requiring non-Federal 
     match for grants awarded under this provision.
       The Conference believes the authorization of this grant 
     program is particularly important because little of the 
     existing DHS rail and transit security grant funds have been 
     available to intercity passenger rail security and no grant 
     funds have been made available for freight railroad security.
     Section 1514. System-Wide Amtrak Security Upgrades
       There is no comparable House provision.
       Section 1422 of the Senate bill authorizes the Secretary of 
     Homeland Security, in consultation with the TSA, to make 
     grants to Amtrak for the purposes of upgrading the security 
     of assets, systems and infrastructure; securing tunnels, 
     trains, and stations; hiring additional police officers; 
     expanding emergency preparedness efforts; and for employee 
     security training. The provision also requires that the 
     Secretary of Transportation disburse the grants to Amtrak for 
     projects contained in its system-wide security plan that it 
     is required to develop. The provision authorizes funds to be 
     appropriated for grants under this section for Fiscal Years 
     2008 through 2010.
       The Conference substitute adopts the Senate provision as 
     modified. The authorization amounts are increased and 
     extended one Fiscal Year to reflect current and anticipated 
     Amtrak security expenditures.

[[Page 20738]]


     Section 1515. Fire and Life Safety Improvements.
       There is no comparable House provision.
       Section 1423 of the Senate bill authorizes the Secretary of 
     Transportation to make grants to Amtrak for the purpose of 
     making fire and life-safety improvements to Amtrak tunnels on 
     the Northeast Corridor. This section authorizes $100 million 
     in funding for the Department of Transportation for each of 
     Fiscal Years 2008 through 2011 to make fire and life-safety 
     improvements to the New York/New Jersey tunnels; $10 million 
     for each of Fiscal Years 2008 through 2011 for improvements 
     of the Baltimore & Potomac and Union tunnels in Baltimore, 
     Maryland; and $8 million for each of Fiscal Years 2008 
     through 2011 for improvements of the Washington, D.C., Union 
     Station tunnels. The Secretary of Transportation is required 
     to approve plans submitted by Amtrak before distributing 
     grants. In addition, the Secretary of Transportation is 
     authorized to consider the feasibility of seeking a financial 
     contribution from other rail carriers towards the cost of the 
     project. This section also authorizes $3 million in FY 2008 
     for preliminary design of a new railroad tunnel in Baltimore, 
     Maryland.
       The Conference substitute adopts the Senate provision, but 
     with reduced authorization levels to reflect the completion 
     of portions of phase 1 of Amtrak's tunnel fire and life 
     safety projects since the consideration of S.4 by the Senate, 
     and other changes.
     Section 1516. Railroad Carrier Exercises
       Section 101 of the House bill provides grants to fund 
     exercises to strengthen preparedness against risks of 
     terrorism. Sections 301 and 302 of the House bill strengthen 
     the design of the national exercise program to require it to 
     enhance the use and understanding of the Incident Command 
     System (ICS) by requiring that the national exercise program 
     include model exercises for use by State, local and tribal 
     governments. Section 1101 of the House bill requires the 
     Secretary of Homeland Security to establish a program to 
     enhance private sector preparedness for acts of terrorism and 
     other emergencies and disasters, developing and conducting 
     training and exercises to support and evaluate emergency 
     preparedness and response plans and operational procedures.
       There is no comparable Senate provision.
       The Conference substitute adopts a new provision that 
     requires the Secretary to create a security exercises program 
     to test and evaluate the ability of railroads to prevent, 
     prepare for, mitigate against, respond to, and recover from 
     acts of terrorism. The provision also requires that the 
     exercises conducted be tailored to the needs of particular 
     facilities, including accommodations for individuals with 
     disabilities; live, in the case of the most at-risk 
     facilities to a terrorist attack; and coordinated with 
     appropriate officials. The Conference substitute also 
     requires that the Secretary, together with the Secretary of 
     Transportation, ensure that the program consolidates existing 
     railroad security exercises that are administered by the 
     Departments, unless this requirement is waived by the 
     Secretary of Homeland Security.
       The Conference intends for there to be one primary rail 
     security exercises program within the Federal government 
     administered by TSA, but are including the waiver authority 
     to ensure that any Department of Transportation railroad 
     safety or railroad hazardous materials exercises that have a 
     nexus with security are not automatically consolidated into 
     this program. The Conference expects that the consolidation 
     of exercises that primarily relate to safety would only occur 
     with the concurrence of the Secretary of Transportation and 
     the Secretary of Homeland Security.
     Section 1517. Railroad Security Training Program
       There is no comparable House provision.
       Section 1429 of the Senate bill requires the Secretary of 
     Homeland Security, in consultation with the Secretary of 
     Transportation, not later than 1 year after the date of 
     enactment of this Act, to work with law enforcement 
     officials, as well as terrorism and railroad security 
     experts, to develop and issue detailed guidance for a 
     railroad worker security training program to prepare front-
     line workers for potential security threat conditions. This 
     section also would require railroad carriers to adopt a 
     worker security training program in accordance with the 
     guidance and submit it to the Secretary of Homeland Security 
     for approval. Within one year after the Secretary completes a 
     review of a railroad carriers' training programs, the 
     railroad carrier would be required to complete the training 
     of all front-line employees consistent with the approved 
     program.
       The Conference substitute adopts the Senate provision with 
     modified language that requires the Secretary, in 
     consultation with appropriate parties, to issue regulations 
     for a railroad training program to prepare frontline 
     employees, as defined in section 1501 of the Conference 
     substitute, for potential security threats and conditions. 
     Not later than 90 days after the Secretary issues 
     regulations, each railroad carrier would be required to 
     submit for review and approval a security training program. 
     Each freight and passenger railroad is required to complete 
     training of all employees not later than one year after the 
     Secretary approves its training program. The Secretary is 
     required to review implementation of the training program.
     Section 1518. Railroad Security Research and Development
       There is no comparable House provision.
       Section 1425 of the Senate bill requires the Secretary of 
     Homeland Security to, in conjunction with the Department of 
     Homeland Security's Undersecretary for Science and Technology 
     and the Administrator for TSA, and in consultation with the 
     Secretary of Transportation, carry out a research and 
     development program for the purpose of improving freight and 
     intercity passenger rail security. In carrying out this 
     section, the Secretary of Homeland Security would be required 
     to coordinate with other research and development initiatives 
     at the Department of Transportation. The Secretary also may 
     award research and development grants to certain entities 
     described in this section. This section authorizes $33 
     million for the DHS for each of Fiscal Years 2008 through 
     2011 for the Secretary to carry out this section.
       The Conference substitute adopts the Senate provision as 
     modified to extend the authorizations to Fiscal Year 2011, to 
     ensure coordination with other research and development 
     initiatives, and with a provision included to ensure that any 
     activities carried out under this section that could affect 
     privacy, civil liberties or civil rights would receive 
     privacy impact assessments.
     Section 1519. Railroad Tank Car Security Testing
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that would 
     assess likely methods of a deliberate attack on a railroad 
     tank car transporting toxic-inhalation-hazard materials and 
     the potential impact of such attacks. It requires the 
     Secretary of Homeland Security to conduct certain physical 
     tests as part of the assessment and to submit a report within 
     30 days of completing the assessment to the appropriate 
     Congressional Committees. The Conference substitute also 
     requires an air dispersion modeling analysis of a rail tank 
     car carrying toxic-inhalation-hazard materials and specifies 
     factors to be considered in that analysis, as well as parties 
     to be consulted in conducting such analysis. Further, the 
     substitute directs the Secretary to share the information 
     developed through the analysis and submit a report to the 
     appropriate Congressional Committees within 30 days of 
     completion of all the modeling exercises. In performing the 
     physical testing required under this section, the Conference 
     expects that the Secretary will take into account other 
     Federal agencies and resources with applicable expertise in 
     such matters.
     Section 1520. Railroad Threat Assessments
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute requires the Secretary of 
     Homeland Security to implement a threat assessment screening 
     program for all relevant transportation employees within one 
     year after the date of enactment, including a name-based 
     check for all employees against the consolidated terrorist 
     watch list and an immigration status check, similar to the 
     threat assessment conducted by the U.S. Coast Guard with 
     regard to port workers.
     Section 1521. Railroad Employee Protections
       There is no comparable House provision.
       Section 1430 of the Senate bill updates the existing 
     railroad employee protections statute to protect railroad 
     employees from adverse employment impacts due to 
     whistleblower activities related to rail security. The 
     provision precludes railroad carriers from discharging, or 
     otherwise discriminating against, a railroad employee because 
     the employee, or the employee's representative: provided, 
     caused to be provided, or is about to provide, to the 
     employer or the Federal government information relating to a 
     reasonably perceived threat to security; provided, caused to 
     be provided, or is about to provide testimony before a 
     Federal or State proceeding; or refused to violate or assist 
     in violation of any law or regulation related to rail 
     security.
       The Conference substitute adopts a modified version of the 
     Senate language. It modifies the railroad carrier employee 
     whistleblower provisions and expand the protected acts of 
     employees, including refusals to authorize the use of safety-
     related equipment, track or structures that are in a 
     hazardous condition. Additionally, the Conference substitute 
     enhances administrative and civil remedies for employees, 
     similar to those in subsection 42121(b) of title 49, United 
     States Code. The language also provides for de novo review of 
     a complaint in Federal District Court if the Department of 
     Labor does not timely issue an order related to the 
     complaint. The Conference substitute also raises the cap on 
     punitive damages that could be awarded under this provision 
     from $20,000 to $250,000.
       The Conference notes that railroad carrier employees must 
     be protected when reporting a safety or security threat or 
     refusing to work when confronted by a hazardous safety or 
     security condition to enhance the oversight measures that 
     improve transparency

[[Page 20739]]

     and accountability of the railroad carriers. The Conference, 
     through this provision, intends to protect covered employees 
     in the course of their ordinary duties. The intent of this 
     provision is to ensure that employees can report their 
     concerns without the fear of possible retaliation or 
     discrimination from employers.
     Section 1522. Security Background Checks of Covered 
         Individuals
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that would 
     ensure that if the Secretary of Homeland Security issues a 
     rule, regulation or directive requiring private employers to 
     conduct security background checks for railroad workers, that 
     it include a redress process for such workers similar to that 
     provide under the Transportation Worker Identification 
     Credential (TWIC) final rule, as required by 46 U.S.C. 
     70105(c). The Secretary is also required to update private 
     employers conducting background checks regarding guidance 
     that has been issued and ensure that any future guidance 
     issued on the topic is consistent with this provision. The 
     Conference substitute requires the Secretary to issue a 
     regulation prohibiting a railroad carrier or contractor or 
     subcontractor to a railroad carrier from knowingly 
     misrepresenting to an employee or other relevant person, 
     including an arbiter involved in a labor arbitration, the 
     scope, application, or meaning of any rules, regulations, 
     directives, or guidance issued by the Secretary related to 
     security background check requirements for covered 
     individuals when conducting a security background check.
       It is not the intent of the Conference that this provision 
     imply that it favors the Department of Homeland Security 
     (DHS) requiring private employers to undertake security 
     background checks. Rather, the Conference intends for the 
     provision to ensure that if such regulations were ever to be 
     promulgated by DHS, that it would contain due process 
     protections similar to those in the TWICE rule would be 
     available for employees. The Conference intends for private 
     employees to retain all rights and authorities afforded them 
     otherwise as private employers.
     Section 1523. Northern Border Railroad Passenger Report
       There is no comparable House provision.
       Section 1428 of the Senate bill requires the Secretary, in 
     consultation with the Transportation Security Administration 
     (TSA), the Secretary of Transportation, heads of other 
     appropriate Federal Departments and Agencies, and Amtrak, 
     within one year after the date of enactment, to submit a 
     report to Congress that contains: a description of the 
     current system for screening passengers and baggage on rail 
     service between the United States and Canada; an assessment 
     of the current program to provide pre-clearance of airline 
     passengers between the United States and Canada; an 
     assessment of the current program to provide pre-clearance of 
     freight railroad traffic between the United States and 
     Canada; information on progress by the Department and other 
     Federal agencies towards finalizing a bilateral protocol with 
     Canada that would provide for pre-clearance of passengers on 
     trains operating between the United States and Canada; a 
     description of legislative, regulatory, budgetary, or policy 
     barriers to providing pre-screened passenger lists for such 
     passengers; a description of the Canadian position with 
     respect to pre-clearance; a draft of any changes to Federal 
     law necessary to allow for pre-screening; and a feasibility 
     analysis of reinstating in-transit inspections onboard 
     international Amtrak trains.
       The Conference substitute adopts the Senate provision and 
     includes language to ensure that any activities carried out 
     under this section that could affect privacy, civil liberties 
     or civil rights will receive privacy impact assessments. The 
     Conference notes the significant delays that routinely plague 
     Amtrak trains due to screening of passenger at or near the 
     U.S.-Canadian border and that these delays both hamper 
     international rail travel and increase costs for Amtrak, and 
     therefore the Federal government. The Conference expects the 
     Secretary of Homeland Security to work, in cooperation with 
     Amtrak and the Canadian Government, to take steps to minimize 
     such delays, as soon as practicable.
     Section 1524. International Railroad Security Program
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that would 
     require the Secretary of Homeland Security to develop a 
     system to detect both undeclared passengers and contraband 
     entering the United States by railroad, with a primary focus 
     on the detection of nuclear and radiological materials and to 
     submit a report to Congress on its progress. The Secretary, 
     in consultation with the TSA, the Domestic Nuclear Detection 
     Office, and Customs and Border Protection, may take a number 
     of actions authorized by the provision to develop this 
     system.
     Section 1525. Transmission Line Report
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that would 
     require that the Comptroller General perform the assessment 
     of the security, safety, economic benefits and risks 
     associated with the placement of high-voltage transmission 
     lines along active railroad and other transportation rights 
     of way.
     Section 1526. Railroad Security Enhancements
       There is no comparable House provision.
       Section 1433 of the Senate bill allows police officers 
     employed by a railroad to be deputized to help a second 
     railroad in carrying out enforcement duties on the second 
     railroad. In addition, the provision would require the 
     Secretary of Transportation to write and distribute to States 
     model railroad police commissioning laws to help prevent the 
     problems posed by so-called ``scam railroads.'' ``Scam 
     railroads'' are companies that are organized as railroads in 
     order to obtain police powers but are not actually engaged in 
     the railroad business.
       The Conference substitute adopts the Senate provision as 
     modified to extend the date by which the Secretary of 
     Transportation would be directed to complete the model state 
     legislation.
     Section 1527. Applicability of District of Columbia Law to 
         Certain Amtrak Contracts
       There is no comparable House provision.
       Senate Section 1438 would require that any lease entered 
     into between the National Railroad Passenger Corporation and 
     the State of Maryland be governed by District of Columbia 
     law.
       The Conference substitute adopts the Senate provision.
     Section 1528. Railroad Preemption Clarification
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that is would 
     to clarify the intent and interpretations of the existing 
     preemption statute and to rectify the Federal court decisions 
     related to the Minot, North Dakota accident that are in 
     conflict with precedent. The modified language restructures 
     49 U.S.C. Sec. 20106 and changes its title from ``National 
     Uniformity of Regulation'' to ``Preemption'' to indicate that 
     the entire section addresses the preemption of State laws 
     related to railroad safety and security.
       Subpart (a) of the Conference substitute is titled 
     ``National Uniformity of Regulation'' and contains the exact 
     text of 49 U.S.C. Sec. 20106 as it existed prior to enactment 
     of this Act. It is restructured for clarification purposes; 
     however, the restructuring is not intended to indicate any 
     substantive change in the meaning of the provision.
       Subpart (b) of the Conference substitute provides further 
     clarification of the intention of 49 U.S.C. Sec. 20106, as it 
     was enacted in the Federal Railroad Safety Act of 1970, to 
     explain what State law causes of action for personal injury, 
     death or property damage are not preempted. It clarifies that 
     49 U.S.C. Sec. 20106 does not preempt State law causes of 
     action where a party has failed to comply with the Federal 
     standard of care established by a regulation or order issued 
     by the Secretary of Transportation or the Secretary of 
     Homeland Security, its own plan or standard that it created 
     pursuant to a regulation or order issued by either of the 
     Secretaries, or a State law, regulation or order that is not 
     incompatible with 49 U.S.C. Sec. 20106(a)(2).
       The modified language also contains a retroactivity 
     provision, which clarifies that 49 U.S.C. Sec. 20106 applies 
     to all pending State law causes of action arising from 
     activities or events occurring on or after January 18, 2002, 
     the date of the Minot, North Dakota derailment. Finally, this 
     provision indicates that nothing in 49 U.S.C. Sec. 20106 
     creates a Federal cause of action on behalf of an injured 
     party or confers Federal question jurisdiction for such State 
     law causes of action.

          Subtitle C--Over-the-Road Bus and Trucking Security

     Section 1531. Over-the-Road Bus Security Assessments and 
         Plans
       There is no comparable House provision.
       Section 1447 of the Senate bill requires the Secretary of 
     Homeland Security to establish a program within the 
     Transportation Security Administration (TSA) to make grants 
     to private over-the-road bus operators and over-the-road bus 
     terminal operators for the purposes of improving bus 
     security. The provision stipulates that the Secretary may not 
     make grants to over-the-road operators until the operators 
     have submitted security plans and provided additional 
     information that the Secretary may require. Section 1447 also 
     requires the Secretary to undertake a bus security 
     assessment, that would include an assessment of: the existing 
     over-the-road bus security grant program; actions already 
     taken to address identified security issues by both public 
     and private entities and recommendations on whether 
     additional safety and security enforcement actions are 
     needed; whether additional legislation is needed to provide 
     for the security of Americans traveling on over-the-road 
     buses; the economic impact that security upgrades of buses 
     and bus facilities may have on the over-the-road bus 
     transportation industry and its employees; ongoing research 
     and the need for additional research on over-the-road bus 
     security, including engine shut-off mechanisms, chemical and 
     biological weapon detection technology, and the feasibility 
     of compartmentalization of the driver; industry best 
     practices to enhance security; and

[[Page 20740]]

     school bus security, if the Secretary deems it appropriate.
       The Conference substitute requires the Secretary to issue 
     regulations, not later than 18 months after the date of 
     enactment, to require high-risk over-the-road bus operators 
     to conduct vulnerability assessments and develop, submit and 
     implement approved security plans. It allows the Secretary to 
     establish a security program for over-the-road bus operators 
     not assigned to a high-risk tier, including guidance on 
     vulnerability assessments and security plans, and a review 
     process, as appropriate. The Conference substitute also 
     requires the Secretary to provide technical assistance and 
     guidance on components of vulnerability assessments and 
     security plans, in addition to relevant threat information 
     necessary for preparing such assessments and plans. It 
     requires the Secretary to review the vulnerability 
     assessments and security plans not later than 6 months upon 
     receipt, and approve such assessments and plans meeting the 
     established requirements. The Conference substitute requires 
     the Secretary to assign each over-the-road bus operator to a 
     risk based tier and operators may be reassigned by the 
     Secretary based on changes in risk. Finally, it requires that 
     the over-the-road bus operators evaluate the adequacy of the 
     assessments and plans submitted to the Secretary not later 
     than 3 years after the date on which the assessment or plan 
     was submitted, and at least once every five years thereafter.
     Section 1532. Over-the-Road Bus Security Assistance
       There is no comparable House provision.
       Section 1447 of the Senate bill requires the Secretary of 
     Homeland Security to establish a program within TSA to make 
     grants to private over-the-road bus operators and over-the-
     road bus terminal operators for the purposes of emergency 
     preparedness drills and exercises, protecting high risk 
     assets, counter-terrorism training and other security-related 
     actions. This provision requires the Secretary, in making 
     grants, to take into consideration security measures that 
     over-the-road bus operators have taken since September 11, 
     2001. The Secretary may not make grants to private operators 
     until the operators have submitted security plans and 
     provided additional information that the Secretary may 
     require. The provision further stipulates that the Secretary 
     must submit a report to Congress and must consult with 
     industry, labor and other groups. This provision authorizes 
     the following funding: $12 million for FY 2008, $25 million 
     for FY 2009, and $25 million for FY 2010. Section 1447 
     requires the Secretary to select the grant recipients, award, 
     and distribute grants to eligible recipients.
       The Conference substitute adopts the Senate language, with 
     modifications. It requires the Secretary to establish a grant 
     program and stipulates that the funds may be used for one or 
     more of the following: construction and modifying terminals 
     to increase security; modifying over-the-road buses to 
     increase their security; protecting the driver of an over-
     the-road bus; acquiring or improving equipment to collect, 
     store and exchange passenger and driver information with 
     ticketing systems and for links with government agencies for 
     security purposes; installing cameras and video surveillance 
     equipment; establishing and improving emergency 
     communications systems; implementing and operating passenger 
     screening programs; developing public awareness campaigns for 
     over-the-road bus security; operating and capital costs 
     associated with over-the-road bus security; detection of 
     chemical, biological, radiological or explosives, including 
     the use of canine patrols; overtime reimbursement for 
     security personnel; live or simulated security exercises; 
     operational costs to hire, train and employ security 
     officers; development of assessments or security plans; and 
     other improvements deemed appropriate by the Secretary. The 
     Conference substitute requires the Secretary to select the 
     grant recipients and award the grants, but would require 
     that, within 90 days following the date of enactment, that 
     the Secretary and the Secretary of Transportation jointly 
     determine the most effective and efficient means to 
     distribute grants awarded under this section to grant 
     recipients. Dependent on the result of this determination, 
     one of the two Secretaries would be authorized to distribute 
     the grants awarded under this section.
       The Conference substitute also stipulates eligibility, 
     limitations on uses of funds, annual reports, and 
     consultation with stakeholders. It authorizes $12 million for 
     FY 2008 and $25 million for each of Fiscal Years 2009 through 
     2011.
     Section 1533. Over-the-Road Bus Exercises
       Section 101 of the House bill provides for grants to fund 
     exercises to strengthen terrorism preparedness. Sections 301 
     and 302 of the House bill strengthen the design of the 
     National exercise program to require it to enhance the use 
     and understanding of the Incident Command System (ICS) by 
     requiring that the National Exercise Program include model 
     exercises for use by State, local and tribal governments. 
     Section 1101 of the House bill requires the Secretary of 
     Homeland Security to establish a program to enhance private 
     sector preparedness for acts of terrorism and other 
     emergencies and disasters, including the development and the 
     conducting of training and exercises to support and evaluate 
     emergency preparedness, response plans, and operational 
     procedures.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision based on 
     elements of the House provisions that require the Secretary 
     to establish a program for conducting security exercises for 
     over-the-road bus transportation to prevent, prepare for, 
     mitigate, respond to, and recover from acts of terrorism. The 
     program shall include Federal, State, local agencies and 
     tribal governments; over-the-road bus operators and terminal 
     owners and operators; governmental and nongovernmental 
     emergency response providers and law enforcement agencies; 
     and other applicable entities. The program calls for 
     consolidation of existing security exercises administered by 
     the Department of Homeland Security, TSA and the Department 
     of Transportation, as appropriate, and shall be comprised of 
     live exercises tailored to the needs of the recipients, 
     coordinated with appropriate officials, inclusive of over-
     the-road bus frontline employees, and consistent with the 
     National Incident Management System, the National Response 
     Plan and other related national initiatives, including the 
     National Exercise Program. The exercises shall be evaluated 
     by the Secretary and the ensuing best practices shall be 
     shared with appropriate stakeholders, and used to develop 
     recommendations of appropriate action.
       The Conference intends for there to be one primary over-
     the-road bus security exercises program within the Federal 
     government administered by TSA, but are including the waiver 
     authority to ensure that any DOT motor carrier safety 
     exercises that have a nexus with security are not 
     automatically consolidated into this program. The Conference 
     expects that the consolidation of exercises that primarily 
     relate to safety would only occur with the concurrence of the 
     Secretary of Transportation and the Secretary of Homeland 
     Security.
     Section 1534. Over-the-Road Bus Security Training Program
       There is no comparable House provision.
       While there is no comparable Senate provision, Section 1447 
     of the Senate bill provides grants to over-the-road bus 
     operators and over-the-road bus terminal operators and owners 
     for the purposes of improving bus security, including 
     training employees in recognizing and responding to security 
     risks, evacuation procedures, passenger screening procedures, 
     and baggage inspection and hiring and training security 
     officers.
       The Conference substitute adopts a new provision that would 
     require, not later than 6 months after enactment, the 
     Secretary of Homeland Security and TSA to develop and issue 
     regulations for a bus training program to prepare the over-
     the-road bus frontline employees, as defined in section 1501 
     of the Conference substitute, for potential security threats 
     and conditions. In developing the regulation, the Secretary 
     shall consult with the appropriate stakeholders including law 
     enforcement, over-the-road bus operators, and nonprofit 
     employee labor organizations. The program shall include 
     security training for determining the following, including: 
     the seriousness of an incident or threat; driver and 
     passenger communication; appropriate responses and training 
     related to terrorist incidents; understanding security 
     procedures; operation and maintenance of security equipment. 
     Not later than 90 days upon issuance of the regulations, the 
     over-the-road bus operators shall develop security training 
     programs, which the Secretary shall review not later than 60 
     days upon receipt. Not later than 1 year after receiving the 
     Secretary's approval of the program, the over-the-road bus 
     operator shall complete the security training of all over-
     the-road bus frontline employees. The Secretary shall update 
     the training regulations, as appropriate and shall ensure 
     that the program developed is a component of the National 
     Training Program. Not later than 2 years after the issuance 
     of the regulation, the Secretary shall review the program and 
     report to the appropriate Congressional Committees.
     Section 1535. Over-the-Road Bus Security Research and 
         Development
       There is no comparable House provision.
       While there is no comparable Senate provision, Section 1447 
     of the Senate bill requires the Secretary of Homeland 
     Security to establish a program within TSA to make grants to 
     private over-the-road bus operators and over-the-road bus 
     terminal operators for the purposes of improving bus 
     security. The section also requires the Secretary to 
     undertake a bus security assessment that would include an 
     assessment of ongoing research and the need for additional 
     research on over-the-road bus security, including engine 
     shut-off mechanisms, chemical and biological weapon detection 
     technology, and the feasibility of compartmentalization of 
     the driver.
       The Conference substitute adopts a provision that requires 
     the Secretary, acting through the Under Secretary for Science 
     and Technology and the Administrator of the Transportation 
     Security Administration, to establish a research and 
     development (R&D) program for over-the-road bus security. 
     Eligible R&D projects include the following: reducing the 
     vulnerability to explosives and hazardous chemical, 
     biological and radioactive substances; testing of new 
     emergency

[[Page 20741]]

     response and recovery techniques; developing improved 
     technologies for emergency response training, and security 
     and redundancy for critical communications. The R&D program 
     shall be consistent with other transportation security R&D 
     programs required by the Act, and shall be coordinated with 
     related activities within the DHS as well as DOT, in addition 
     to R&D conducted by additional entities and agencies. The 
     provision permits R&D projects authorized in this section to 
     be enacted through a reimbursable agreement, if necessary, or 
     memoranda of understanding, contracts, grants, cooperative 
     agreements or other applicable transactions. The Conference 
     substitute also requires the Secretary to consult with the 
     Chief Privacy Officer of the Department, and the Officer for 
     Civil Rights and Civil Liberties, who must conduct privacy 
     impact assessments and reviews, respectively and as 
     appropriate, for R&D initiatives that could have an impact on 
     privacy, civil rights or civil liberties. Finally, the 
     provision authorizes $2 million for each of Fiscal Years 2008 
     through 2011.
     Section 1536. Motor Carrier Employee Protections
       There is no comparable House provision.
       Section 1430 of the Senate bill updates the existing 
     railroad employee protections statute to protect railroad 
     employees from adverse employment impacts due to 
     whistleblower activities related to rail security.
       The Conference substitute adopts a provision related to the 
     Senate provision which expands whistleblower protections to 
     motor carrier, including over-the-road bus, employees. It 
     amends the current motor carrier employee whistleblower 
     provision for safety to include whistleblower protections and 
     increase employee protections related to security. This 
     provision prohibits motor carriers from discriminating 
     against or discharging any employee who reports a safety or 
     security threat, or who refuses to work when confronted by 
     hazardous safety or security conditions. The Conference 
     substitute also provides employees with additional 
     administrative and civil remedies, including de novo review 
     of a complaint in Federal District Court if the Department of 
     Labor does not issue an order related to the complaint in a 
     timely fashion. It authorizes all relief necessary to make a 
     whistleblower whole, including damages, reinstatement with 
     prior seniority status, special damages, and attorneys' fees. 
     Punitive damages are also made available to employees in an 
     amount not exceed $250,000.
       The Conference believes that motor carrier, including over-
     the-road bus, employees must be protected when reporting a 
     safety or security threat or refusing to work when confronted 
     by hazardous safety or security condition. The Conference, 
     through this provision, intends to protect covered employees 
     in the course of their ordinary duties. The intent of this 
     provision is to ensure that employees can report their 
     concerns without the fear of possible retaliation or 
     discrimination from employers.
     Section 1537. Unified Carrier Registration System Agreement
       There is no comparable House provision.
       Section 1436 of the Senate bill reinstates the Single State 
     Registration System (SSRS) used by some States to levy motor 
     carrier registration fees. This system was repealed pursuant 
     to the Safe, Accountable, Flexible and Efficient 
     Transportation Equity Act--A Legacy for Users (SAFETEA-LU) in 
     the 109th Congress and a new Unified Carrier Registration 
     (UCR) system was required to be developed. However, the 
     Department of Transportation missed the deadlines to 
     implement the new UCR system, meaning the States no longer 
     have the necessary Federal authority to charge motor carriers 
     registration fees. The Senate provisions reinstate the SSRS 
     system until the UCR is implemented and thus provide 
     authority for the States to collect registration fees.
       The Conference substitute adopts a modified version of the 
     Senate provision which will extend the effect of Section 
     14504 of title 49, U.S. Code, until January 1, 2008 or the 
     effective date of final regulations issued under this 
     section. The provision establishes a deadline of not later 
     than October 1, 2007 for the Federal Motor Carrier Safety 
     Administration (FMCSA) to issue final regulations to 
     establish the Unified Carrier Registration System and set 
     fees for the calendar year 2008 and subsequent calendar 
     years, as required by law. The provision also amends relevant 
     sections of SAFETEA-LU. By enacting this provision, the 
     Conference does not intend that FMCSA should wait until 2008 
     to enact the Unified Carrier Registration System, in the 
     event that the necessary regulations and fee structure are 
     finalized in 2007. The Conference believes that FMCSA has the 
     authority to set fees for 2007 pursuant to SAFETEA-LU and 
     urges the expeditious enactment of the UCR plan and agreement 
     and system as soon as possible.
     Section 1538. School Bus Transportation Security
       There is no comparable House provision.
       While there is no comparable Senate provision, Section 1447 
     of the Senate bill requires the Secretary of Homeland 
     Security to establish a program within TSA to make grants to 
     private over-the-road bus operators and over-the-road bus 
     terminal operators for the purposes of improving bus 
     security. The section also requires the Secretary to 
     undertake a bus security assessment that would include an 
     assessment of school bus security, if the Secretary deems it 
     appropriate.
       The Conference substitute expands upon the Senate provision 
     and directs the Secretary to transmit a report to the 
     appropriate Congressional Committees containing a 
     comprehensive assessment of the risk of a terrorist attack on 
     the Nation's school bus transportation system. The report 
     shall include assessments of the following: the security 
     risks to the Nation's publicly and privately operated school 
     bus systems; actions taken by operators to address security 
     risks; and the need for additional actions and investments to 
     improve the security of passengers traveling on school buses. 
     In conducting these assessments, the Secretary shall consult 
     with relevant stakeholders.
     Section 1539. Technical amendment
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute amends subsection 1992(d)(7) of 
     title 18, United States Code, to clarify that a definition 
     includes intercity bus transportation.
     Section 1540. Truck security assessment
       There is no comparable House provision.
       Section 1445 of the Senate bill requires the Secretary, in 
     coordination with the Secretary of Transportation, to 
     transmit a report to Congress on security issues related to 
     the trucking industry.
       The Conference substitute adopts the Senate provision, as 
     modified. The Conference substitute requires the Secretary of 
     Homeland Security, in coordination with the Secretary of 
     Transportation, to issue a report, in either classified or 
     redacted format, or both, within one year that includes an 
     assessment of the security risks to the trucking industry, an 
     assessment of truck security actions already taken by public 
     and private entities, an assessment of the economic impact 
     that security upgrades might have on the trucking industry, 
     an assessment of ongoing security research, an assessment of 
     industry best practices, and an assessment of the current 
     status of secure truck parking.
     Section 1541. Memorandum of Understanding Annex
       There is no comparable House provision.
       Section 1443 of the Senate bill requires an annex to the 
     existing Memorandum of Understanding between the Department 
     of Transportation and the Department of Homeland Security 
     governing the specific roles, delineations of 
     responsibilities, resources and commitments of the two 
     Departments in addressing motor carrier transportation 
     security.
       The Conference substitute adopts the Senate provision with 
     a minor modification to emphasize that motor carrier 
     transportation includes over-the-road bus transportation.
     Section 1542. DHS Inspector General Report on Trucking 
         Security Grant Program
       There is no comparable House provision.
       Section 1453 of the Senate bill requires the Inspector 
     General of the Department to submit a report to Congress 
     within 90 days of enactment on the Trucking Security Grant 
     Program for Fiscal Years 2004 and 2005.
       The Conference substitute adopts the Senate provision, as 
     amended, to require the Inspector General of the Department 
     of Homeland Security to submit an additional report within 
     one year to Congress that analyzes, using all years of 
     available data, the performance, efficiency, and 
     effectiveness of, the need for, and recommendations regarding 
     the future of the Trucking Security Grant Program.

          Subtitle D--Hazardous Material and Pipeline Security

     Section 1551. Railroad Routing of Security-Sensitive 
         Materials
       There is no comparable House provision.
       Section 1431 of the Senate bill directs the Secretary of 
     Homeland Security, in consultation with TSA and the 
     Department of Transportation, to require rail carriers 
     transporting high hazard materials to develop security threat 
     mitigation plans, including alternative routing and temporary 
     shipment suspension options, and to address assessed risks to 
     high consequence targets. These threat mitigation plans are 
     to be implemented when the threat levels of the Homeland 
     Security Advisory System are high or severe or specific 
     intelligence of probable or imminent threat exists toward 
     high-consequence rail targets or infrastructure. Within 60 
     days of enactment of the Act, a list of routes used to 
     transport high hazard materials must be submitted to the 
     Secretary. Within 180 days after receiving the notice of high 
     consequence targets on such routes by the Secretary, each 
     rail carrier must develop and submit a high hazard materials 
     security threat mitigation plan to the Secretary. Any 
     revisions must be submitted to the Secretary within 30 days 
     of the revisions being made. The Secretary, with the 
     assistance of the Secretary of Transportation, is directed to 
     review and transmit comments on the plans to the railroad 
     carrier. A railroad carrier must respond to those comments 
     within 30 days. The plans would be required to be updated by 
     the railroad carrier every two years. This section

[[Page 20742]]

     also defines the following terms: ``high-consequence 
     target,'' ``catastrophic impact zone,'' and ``rail carrier.''
       The Conference substitute adopts a modified version of the 
     Senate provision that requires the Secretary of 
     Transportation, in consultation with the Secretary of 
     Homeland Security, to publish a final rule for the 
     transportation of hazardous materials that would require 
     railroad carriers to compile commodity data of security 
     sensitive materials and analysis of the safety and security 
     risks for transportation routes of security sensitive 
     materials. It also mandates that the final rule require that 
     rail carriers that ship security-sensitive materials identify 
     alternate routes, analyze the safety and security 
     considerations of such alternative routes, and use such 
     routes with the least safety and security risk when 
     transporting security-sensitive materials. The Conference 
     substitute requires that when railroads consider alternative 
     routes, they consider the use of routes with interchange 
     agreements.
     Section 1552. Railroad Security Sensitive Material Tracking
       There is no comparable House provision.
       Section 1435 of the Senate bill requires the Secretary of 
     Homeland Security, in consultation with TSA, to develop a 
     program to encourage the equipping of rail cars transporting 
     high hazard materials with communications technology that 
     provides information concerning car position, 
     depressurization, and the release of hazardous materials. 
     This section also authorizes $3 million in funding for each 
     of Fiscal Years 2008 through 2010 for the Secretary to carry 
     out this section.
       The Conference substitute adopts the Senate language with 
     minor modifications.
     Section 1553. Hazardous Materials Highway Routing
       There is no comparable House provision.
       Section 1442 of the Senate bill requires the Secretary of 
     Transportation, within one year of enactment of the Act, in 
     consultation with the Secretary of Homeland Security, to: 
     document existing and proposed routes for the transportation 
     of radioactive and non-radioactive hazardous materials by 
     motor carrier and develop a framework by using a Geographic 
     Information System-based approach to characterize routes in 
     the National Hazardous Materials Route Registry; assess and 
     characterize existing and proposed routes for the 
     transportation of radioactive and non-radioactive hazardous 
     materials by motor carrier for the purpose of identifying 
     measurable criteria for selecting routes based on safety and 
     security concerns; analyze current route-related hazardous 
     materials regulations in the US, Canada, and Mexico to 
     identify cross-border differences and conflicting 
     regulations; document the concerns of the public, motor 
     carriers, and State, local, territorial, and tribal 
     governments about the highway routing of hazardous materials 
     for the purpose of identifying and mitigating security risks 
     associated with hazardous material routes; prepare guidance 
     materials for State officials to assist them in identifying 
     and reducing both safety concerns and security risks when 
     designating highway routes for hazardous materials; develop a 
     tool that will enable State officials to examine potential 
     routes for the highway transportation of hazardous materials; 
     transmit to the Senate Committee on Commerce, Science, and 
     Transportation, and the House Committee on Transportation and 
     Infrastructure a report on the actions taken to fulfill all 
     the requirements of this section and any recommended changes 
     to the routing requirements for the highway transportation of 
     hazardous materials.
       Under Section 1442, within 1 year of the date of enactment, 
     the Secretary of Transportation would be required to complete 
     an assessment of the safety and national security benefits 
     achieved under existing requirements for route plans for 
     explosives and radioactive materials and shall submit a 
     report to the appropriate Congressional Committees with the 
     findings and conclusions of the assessment. The Secretary of 
     Transportation is also directed to assess, and potentially 
     require, the addition of certain high-hazardous materials to 
     the list of existing hazardous materials that are required to 
     be transported by motor carriers that use highway routing 
     plans.
       The Conference substitute adopts the Senate language with 
     minor modifications.
     Section 1554. Motor Carrier Security-Sensitive Material 
         Tracking
       There is no comparable House provision.
       Section 1442 of the Senate bill requires the Secretary of 
     Homeland Security, through TSA, and in consultation with the 
     Secretary of Transportation, to develop a program to 
     facilitate the equipping of motor carriers transporting high 
     hazard materials with communications technology that provides 
     frequent or continuous communications, vehicle position and 
     location and tracking capabilities, and an emergency 
     broadcast capability. This section authorizes $7 million to 
     carry out this section for each of Fiscal Years 2008 through 
     2010, of which $3 million per year may be used for equipment 
     and $1 million per year may be used for operations.
       The Conference substitute adopts the Senate language as 
     modified. This section would require that the Secretary of 
     Homeland Security, through the TSA, and in consultation with 
     the Secretary of Transportation, develop a program to 
     facilitate the deployment and use of tracking technologies 
     for motor carrier shipments of certain security-sensitive 
     hazardous materials. It retains the Senate provision 
     authorization level amounts, but does not include the 
     specific set-aside of a $1 million per year that may be used 
     for operations.
       The Conference expects that this program will help expand 
     the use of technology that allows for continuous 
     communication, position location and tracking, and emergency 
     distress signal broadcasting, when such technologies can 
     improve security without being overly burdensome, and that 
     the provision will expand TSA's analysis of other tracking-
     related security technologies that could be beneficial to the 
     security of hazardous materials truck shipments through the 
     evaluation required under this section.
     Section 1555. Hazardous Materials Security Inspections and 
         Study
       There is no comparable House provision.
       Section 1444 of the Senate bill requires the Secretary of 
     Homeland Security to establish a program within TSA, in 
     consultation with the Secretary of Transportation, for 
     reviewing hazardous materials security plans within one year 
     after the enactment of this Act. Failure by any covered 
     person to comply with part 172, title 49, Code of Federal 
     Regulations, within 180 days after being notified by the 
     Secretary is punishable by a civil penalty. In reviewing 
     compliance with part 172, the Secretary is required to 
     utilize risk assessment methodologies to prioritize review 
     and enforcement actions to the highest risk hazardous 
     materials transportation operations. This section also 
     requires the Secretary of Transportation, within one year, in 
     coordination with the Secretary of Homeland Security, to 
     study to what extent the insurance, security, and safety 
     costs borne by carriers of hazardous materials are reflected 
     in the rates paid by shippers of such commodities, as 
     compared to those for the transportation of non-hazardous 
     materials. Section 1444 authorizes $2 million each of Fiscal 
     Years 2008 through 2010.
       The Conference substitute adopts the Senate provision as 
     modified. It directs the Secretary of Transportation, in 
     consultation with the Secretary of Homeland Security to limit 
     duplicative reviews of hazardous materials security plans 
     required under part 172, title 49, Code of Federal 
     Regulations. The Conference substitute retains the cost study 
     from the original Senate provision.
     Section 1556. Technical Corrections
       There is no comparable House provision.
       Section 1450 of the Senate bill corrects technical errors 
     to section 5103a of title 49, United States Code, by 
     inserting ``Secretary of Homeland Security'' in place of the 
     term ``Secretary''. This section also clarifies that an 
     individual with a valid transportation worker identification 
     card has satisfied the background records check required 
     under 5103a of title 49, United States Code. This section 
     does not preempt State requirements on background checks 
     required to receive a hazardous materials endorsement.
       The Conference substitute adopts the Senate language with 
     minor modifications to clarify the Department of 
     Transportation and the Department of Homeland Security's 
     roles in carrying out section 5103a of title 49, United 
     States Code.
     Section 1557. Pipeline Security Inspections and Enforcement
       There is no comparable House provision.
       Section 1449 of the Senate bill requires the Secretary of 
     Homeland Security, in consultation with the Secretary of 
     Transportation, to establish a program for reviewing pipeline 
     operator adoption of recommendations in the September 5, 
     2002, Department of Transportation Research and Special 
     Programs Administration Pipeline Security Information 
     Circular, including the review of pipeline security plans and 
     critical facility inspections. Section 1449 also requires the 
     Secretary of Homeland Security and the Secretary of 
     Transportation to develop and implement a plan for reviewing 
     pipeline security plans and an inspection of the critical 
     facilities of the 100 most critical pipeline operators 
     covered by the September 5, 2002 Circular. In reviewing 
     pipeline operators, the Secretary of Homeland Security and 
     the Secretary of Transportation shall use risk assessment 
     methodologies to prioritize risks and to target inspection 
     and enforcement actions to the highest risk pipeline assets. 
     The section also requires the Secretary of Homeland Security 
     and the Secretary of Transportation to develop and transmit 
     to pipeline operators security recommendations for natural 
     gas and hazardous liquid pipelines and pipeline facilities. 
     If the Secretary of Homeland Security determines that 
     regulations are appropriate, the regulations must incorporate 
     the guidance provided to pipeline operators in the September 
     5, 2002 Circular and contain additional requirements as 
     necessary based upon the results of inspections performed 
     under this section. The regulations must also include the 
     imposition of civil penalties for non-compliance. Finally, 
     the provision authorizes appropriations of $2 million for 
     Fiscal Years 2008 and 2009 for a pipeline security inspection 
     and enforcement program.

[[Page 20743]]

       The Conference substitute adopts the Senate provision, with 
     modifications to the dates for program implementation, 
     review, and issuance of regulations, an extension of the 
     authorization to Fiscal Year 2010, and other changes.
       With respect to pipelines, the Conference is aware that a 
     portion of these critical facilities have been inspected, and 
     do not expect re-inspections to be performed needlessly. The 
     Conference expects the Secretary of Homeland Security and the 
     Secretary of Transportation to inspect facilities that have 
     not been inspected for security purposes since September 5, 
     2002, by either the Department of Transportation or the 
     Department of Homeland Security, and to re-inspect those 
     facilities which the Secretaries deem appropriate.
     Section 1558. Pipeline Security and Incident Recovery Plan
       There is no comparable House provision.
       Section 1448 of the Senate bill requires the Secretary of 
     Homeland Security, in consultation with the Secretary of 
     Transportation and the Pipeline and Hazardous Materials 
     Safety Administration (PHMSA), to develop a pipeline security 
     and incident recovery protocols plan. The plan must be 
     developed in accordance with the Memorandum of Understanding 
     Annex executed on August 9, 2006 and take into account 
     actions taken or planned by both private and public entities 
     to address identified pipeline security issues and assess the 
     effective integration of such actions. It also requires the 
     Secretary of Homeland Security to transmit to Congress a 
     report containing the plan, along with an estimate of the 
     private and public sector costs to implement any 
     recommendations.
       The Conference substitute adopts the Senate provision with 
     modifications, including the requirement that the incident 
     recovery protocols plan be developed in accordance with the 
     National Strategy for Transportation Security and Homeland 
     Security Presidential Directive-7, in addition to the 
     pipeline security annex to the Department of Homeland 
     Security-Department of Transportation Memorandum of 
     Understanding. Language was also added to require that the 
     incident recovery protocol plan address the restoration of 
     essential services supporting pipelines, such as electrical 
     service.

                      TITLE XVI--AVIATION SECURITY

     Section 1601. Airport Checkpoint Screening Fund
       Section 403 of the House bill establishes an airport 
     checkpoint screening fund to be funded in Fiscal Year 2008 
     with $250 million and expanded until exhausted for the 
     procurement of explosives detection equipment at security 
     checkpoints. These funds would be derived from the current 
     Transportation Security Administration (TSA) security fee.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It provides the TSA Administrator with the 
     authority to expend funds in FY 2008 for the purchase, 
     deployment, installation, research, and development of 
     equipment to improve security screening for explosives at 
     commercial airport checkpoints.
       The National Commission on Terrorist Attacks Upon the 
     United States (the 9/11 Commission) asserted that while more 
     advanced screening technology is being developed, Congress 
     should provide funding for, and TSA should move as 
     expeditiously as possible to support, the installation of 
     explosives detection trace portals or other applicable 
     technologies at more of the nation's commercial airports. 
     Advanced technologies, such as the use of non-intrusive 
     imaging, have been evaluated by TSA over the last few years 
     and have demonstrated that they can provide significant 
     improvements in threat detection at airport passenger 
     screening checkpoints for both carry-on baggage and the 
     screening of passengers.
       The Conference urges TSA to deploy such technologies 
     quickly and broadly to address security shortcomings at 
     passenger screening checkpoints. The Conference believes the 
     best way to provide for the research and development of 
     technologies and techniques that would prevent explosives 
     from being placed onto passenger aircraft is to pilot these 
     technologies at a diverse group of airports. The Conference 
     directs the Secretary of Homeland Security (the Secretary) to 
     give priority for these pilot projects to airports that have 
     demonstrated their expertise as pilot sites and that have 
     been selected by the TSA as ``model airports'' for the 
     deployment of technology to detect explosives.
     Section 1602. Screening of Cargo Carried Aboard Passenger 
         Aircraft
       Section 406 of the House bill requires 100 percent of cargo 
     carried on passenger aircraft to be inspected no later than 3 
     years after the date of enactment. At a minimum, the 
     inspection of such cargo should provide a level of security 
     equivalent to the inspection of passenger checked baggage. 
     The provision requires that the percent of such cargo that 
     should meet these screening standards should be 35 percent by 
     the end of Fiscal Year 2007, 65 percent by the end of Fiscal 
     Year 2008, and 100 percent by the end of Fiscal Year 2009. 
     The Secretary may issue an interim final rule (IFR) but must 
     issue a final rule not later than one year after the IFR. 
     After the system becomes operational, TSA is required to 
     report to Congress, within 1 year, detailing the operations; 
     and within 120 days, report on exemptions permitted under the 
     system. The report on exemptions must also be provided to the 
     Government Accountability Office (GAO) which must provide an 
     assessment of such exemptions to Congress within 120 days of 
     receiving the report.
       Section 1462 of the Senate bill requires TSA to develop and 
     implement a system, within 3 years of the date of enactment, 
     to provide for the screening of all cargo being carried on 
     passenger aircraft. The Secretary may issue an interim final 
     rule (IFR) but must issue a final rule not later than one 
     year after the IFR. After the system becomes operational, the 
     TSA is required to report to Congress, within 1 year, 
     detailing the operations and, within 180 days, assessing 
     exemptions permitted under the system. The report on 
     exemptions must also be provided to GAO which must provide an 
     assessment of such exemptions to Congress within 120 days of 
     receiving the report.
       The Conference substitute adopts a combination of the House 
     and Senate provisions, as modified. It requires minimum 
     standards for the screening of cargo on commercial passenger 
     aircraft that must be commensurate with the level of 
     screening for passenger checked baggage. The Conference 
     substitute includes one benchmark; 50 percent of cargo on 
     commercial passenger aircraft must be screened in 18 months 
     and 100 percent screening achieved in the three years 
     following the date enactment of the legislation. The 
     Conference considers that if TSA were unable to meet the 
     first benchmark, TSA would be required to give classified 
     briefings, on a periodic and to be determined frequency, to 
     the Senate Committee on Commerce, Science and Transportation 
     and to the House Committee on Homeland Security, to explain 
     the status of TSA's ability to maximize the screening of 
     cargo on commercial personal aircraft without causing 
     negative repercussions on the flow of commerce.
       The Conference substitute also defines the term 
     ``screening'' in order to clarify the requirements of the 
     section and the methods of screening the TSA Administrator is 
     permitted to use to screen cargo on commercial aircraft. The 
     Conference notes that the use of the phrase ``physical search 
     together with manifest verification'' denotes one method of 
     screening, separate and apart from the other methods listed 
     in this subsection, such as X-ray systems, etc. The 
     Conference is also concerned about TSA using data checks of 
     cargo or shippers, including a review of information about 
     the contents of the cargo or verifying the identity of a 
     shipper through a database, such as the Known Shipper 
     database, as a single factor in determining whether cargo 
     poses a threat to transportation security. The Conference 
     substitute, therefore, requires that if such data checks are 
     used, they must be paired with an additional physical or non-
     intrusive screening method approved by TSA that examines the 
     cargo's contents.
       If TSA does not submit a final rule to implement this 
     program within one year after an interim final rule becomes 
     effective, the Department of Homeland Security (the 
     Department or DHS) will be required to submit status reports 
     to the relevant Congressional Committees every 30 days until 
     a final rule is issued. After the system becomes operational, 
     TSA is required to report to Congress, within 1 year, 
     detailing the operations and, within 120 days, report on 
     exemptions permitted under the system. The report on 
     exemptions must also be provided to GAO which must provide an 
     assessment of such exemptions to Congress within 120 days of 
     receiving the report.
       The Conference believes that TSA should consider 
     establishing a system whereby aviation ground service 
     providers that perform cargo security screening services for 
     passenger aircraft, are compensated for costs incurred as a 
     result of increased cargo security requirements.
     Section 1603. In-Line Baggage Screening
       Section 401 of the House bill requires the submission of an 
     overdue cost-sharing study on in-line explosive detection 
     systems (EDS) installation within 30 days of enactment, along 
     with the Secretary's analysis of the study, a list of 
     provisions the Secretary intends to implement, and a plan and 
     schedule for implementation.
       Section 1465 of the Senate bill authorizes $450 million in 
     discretionary funds for Fiscal Years 2008 through 2011 to 
     fund the installation of in-line EDS at U.S. airports at a 
     level approximate to the TSA's strategic plan for the 
     deployment of such systems. It also requires the submission 
     of an overdue cost-sharing study on in-line EDS installation 
     within 30 days of enactment.
       The Conference substitute adopts a combination of the House 
     and Senate provisions, as modified. It authorizes funding 
     through Fiscal Year 2028. It further requires the submission 
     of a cost sharing study and an analysis of the study by the 
     DHS Secretary within 60 days of enactment of the legislation.
     Section 1604. In-Line Baggage System Deployment
       There is no comparable House provision.
       Section 1466 of the Senate bill mandates, through Fiscal 
     Year 2028, the annual dedication of $250 million of the 
     amounts currently

[[Page 20744]]

     collected in aviation security fees to the Aviation Security 
     Capital Fund for the installation of in-line electronic 
     screening systems for the enhanced screening of checked 
     baggage at airports. The provision also bolsters the existing 
     Letter of Intent (LOI) program, through changes in funding 
     allocation requirements and requiring the creation of a 
     prioritization schedule for planned projects.
       The Conference substitute adopts the Senate provision, as 
     modified to require annual dedication, through Fiscal Year 
     2028, of $250 million of the amounts currently collected in 
     aviation security fees to the Aviation Security Capital Fund 
     for the installation of in-line electronic screening systems 
     for the enhanced screening of checked baggage at airports. 
     Four-fifths of the annual allotment--not less than $200 
     million--must be committed to the completion of LOIs, while 
     the remaining funds may be distributed in a discretionary 
     manner to fund such projects, in a priority manner, at small 
     and non-hub airports. It also promotes leveraged funding for 
     such projects, and to permit airports that have incurred 
     eligible costs to improve baggage screening at their 
     facilities to pursue reimbursement of such costs from TSA.
       The Conference strongly believes that this program should 
     be managed as outlined in the legislation and that TSA and 
     the Administration must have a 20-year horizon for the LOIs, 
     rather than a limited short-term view which would have 
     detrimental effects on the ability of airports to obtain 
     requisite funding from the financial bond markets. The 
     Conference believes that airports may not renegotiate 
     previously agreed-upon Government contributions, through 
     LOIs, or any other applicable arrangement, for in-line EDS 
     systems.
     Section 1605. Strategic Plan to Test and Implement Advanced 
         Passenger Prescreening System
       Section 409 of the House bill requires the Department, 
     within 90 days of enactment, to submit a strategic plan to 
     Congress that describes the system to be utilized for 
     comparing passenger information to watch lists; explain the 
     integration with international flights; and provide a 
     projected timeline for testing and implementation its 
     advanced passenger prescreening system.
       Section 1472 of the Senate bill requires the Department, 
     within 180 days of enactment, to submit a strategic plan to 
     Congress that describes the system to be utilized for 
     comparing passenger information to watch lists; explains the 
     integration with international flights; and provides a 
     projected timeline for testing and implementation its 
     advanced passenger prescreening system. In addition, the 
     provision requires that a report by the GAO be issued to 
     Congress within 90 days of enactment. This report must 
     describe progress made in implementing Secure Flight; the 
     effectiveness of the appeals process; integration with the 
     international flight pre-screening program operated by 
     Customs and Border Protection (CBP); and other relevant 
     observations.
       The Conference substitute adopts the House and Senate 
     provisions, as modified. The provision would require the 
     Department, in consultation with TSA, to submit a strategic 
     plan to Congress, within 120 days of enactment of the 
     legislation, that includes timelines for testing and 
     implementation of its advanced passenger prescreening system. 
     In addition, a GAO report must be issued to Congress within 
     180 days to review, inter alia, the implementation of Secure 
     Flight by the Department; the effectiveness of the appeals 
     process; integration with the international flight pre- 
     screening program operated by the CBP.
     Section 1606. Appeal and Redress Process for Passengers 
         Wrongly Delayed or Prohibited from Boarding a Flight
       Section 407 of the House bill directs DHS to create an 
     Office of Appeals and Redress to establish and administer a 
     timely and fair process for airline passengers who believe 
     they have been delayed or prohibited from boarding a 
     passenger flight because they have been misidentified against 
     the ``No-Fly'' or ``Selectee'' watch lists. The Office of 
     Appeals and Redress must establish a presence at each airport 
     to begin the appeals process for those passengers wrongly 
     identified against watch lists.
       Section 1471 of the Senate bill directs DHS to create an 
     Office of Appeals and Redress to establish and administer a 
     timely and fair process for airline passengers who believe 
     they have been delayed or prohibited from boarding a 
     passenger flight because they have been misidentified against 
     the ``No-Fly'' or ``Selectee'' watch lists.
       The Conference substitute combines the House and Senate 
     provisions, as modified. It creates the Office in DHS to 
     ensure an adequate appeal and redress process in place for 
     passenger wrongly identified against watch lists, and to 
     increase privacy protections for individuals. The provision 
     requires Federal employees within DHS handling personally 
     identifiable information (PII) of passengers to complete 
     mandatory privacy and security training. In addition, the 
     provision requires that DHS ensure that airline passengers 
     are able to initiate the redress process at airports with a 
     significant TSA presence.
     Section 1607. Strengthening Explosives Detection at Passenger 
         Screening Checkpoints
       Section 404 of the House bill directs TSA to issue, within 
     7 days, a strategic plan, as required by the Intelligence 
     Reform and Terrorism Prevention Act of 2004 (Public Law 108-
     458), for the deployment of explosives detection equipment at 
     airport checkpoints.
       Section 1470 of the Senate bill directs DHS to issue, 
     within 90 days after enactment, a strategic plan, as required 
     by the Intelligence Reform and Terrorism Prevention Act of 
     2004 (Public Law 108-458), for the deployment of explosives 
     detection equipment at airport checkpoints. It also requires 
     TSA to begin full implementation of the strategic plan within 
     1 year of its submission.
       The Conference substitute adopts a combination of the House 
     and Senate provisions, as modified. It directs DHS, in 
     consultation with TSA, to issue a strategic plan for the 
     deployment of explosives detection equipment at airport 
     checkpoints within 30 days of enactment, and requires the TSA 
     to begin implementation of the plan within 1 year of its 
     submission.
     Section 1608. Research and Development of Aviation 
         Transportation Security Technology
       There is no comparable House provision.
       Section 1467 of the Senate bill extends an authorization 
     for research and development spending for aviation security 
     technology at a level of $50 million through Fiscal Year 
     2009.
       The Conference substitute adopts the Senate provision, as 
     modified to authorize research and development funding for 
     aviation security technology at a level of $50 million 
     through Fiscal Year 2011.
     Section 1609. Blast-Resistant Cargo Containers
       There is no comparable House provision.
       Section 1463 of the Senate bill requires TSA to develop a 
     system by which the Administrator provides blast-resistant 
     cargo containers to commercial passenger air carriers for 
     use, on a random or risk-assessed basis, as determined by the 
     agency. The cargo containers must be acquired by TSA within 
     90 days of the agency's completion of development of the 
     system.
       The Conference substitute adopts the Senate provision, as 
     modified. It requires TSA to evaluate and distribute a report 
     to Congress and the air carrier industry that includes the 
     results of its blast resistant cargo container pilot program. 
     After reporting, TSA must develop and implement a program 
     consistent with the results of the evaluation to acquire the 
     necessary blast resistant cargo containers and make them 
     available to air carriers on a risk-assessed basis, as 
     determined appropriate by the Administrator.
     Section 1610. Protection of Passenger Planes from Explosives
       There is no comparable House provision.
       Section 1464 of the Senate bill directs DHS to expedite 
     research and development pilot projects that advance 
     technology to protect passenger planes from the threat of 
     explosive devices. It also requires the establishment of a 
     grant program to fund projects the agency develops through 
     this process, with an authorization for such sums as 
     necessary for Fiscal Year 2008.
       The Conference substitute adopts the Senate provision, as 
     modified. It requires DHS, in consultation with TSA, to 
     develop pilot projects that advance technology for protecting 
     passenger planes from the threat of explosive devices and to 
     establish a grant program to fund projects developed under 
     the program with an authorization for fiscal year 2008.
     Section 1611. Specialized Training
       There is no comparable House provision.
       Section 1469 of the Senate bill requires TSA to provide 
     specialized training to Transportation Security Officers for 
     the development of advanced security skills, including 
     behavior observation, explosives detection and document 
     verification.
       The Conference substitute adopts the Senate provision. It 
     requires TSA to provide specialized training to 
     Transportation Security Officers for the development of 
     advanced security skills, including behavior observation, 
     explosives detection and document verification, to enhance 
     the effectiveness of layered transportation security 
     measures.
     Section 1612. Certain TSA Personnel Limitation not to Apply
       There is no comparable House provision.
       To ensure that the agency is properly staffed at a level 
     necessary to screen travelers as air passenger traffic 
     numbers continue to increase, Section 1468 of the Senate bill 
     removes the arbitrary hiring cap on Transportation Security 
     Officers of 45,000 full-time equivalent (FTE) employees that 
     is currently imposed on the TSA's screener workforce.
       The Conference substitute adopts the Senate provision. It 
     removes the arbitrary screener cap of 45,000 full-time 
     equivalent (FTE) employees that is currently imposed on the 
     TSA's screener workforce so that the agency will be properly 
     staffed at a level necessary to screen travelers as air 
     passenger traffic numbers continue to increase.
     Section 1613. Pilot Project to Test Different Technologies at 
         Airport Exit Lanes
       There is no comparable House provision. Section 1479 of the 
     Senate bill establishes a pilot program to test new 
     technologies for reducing the number of TSA employees at

[[Page 20745]]

     airport exit lanes, and requires the TSA Administrator to 
     brief Congressional Committees, within 180 days, on the 
     program, and provide a final report within 1 year.
       The Conference substitute adopts the Senate provision, as 
     modified. It directs TSA to conduct a pilot project, at no 
     more than two airports, to identify technologies to improve 
     security at airport exit lanes. The pilot program must ensure 
     that the level of safety remains at, or above, the existing 
     level of security at airports where the pilot program is 
     initiated. TSA must brief appropriate Congressional 
     Committees on the pilot program within 180 days of enactment 
     on the pilot program, and provide a report on the program to 
     those Committees within 18 months of the program's 
     implementation. The provision also stipulates that this 
     section shall be executed using existing funds.
     Section 1614. Security Credentials for Airline Crews
       There is no comparable House provision.
       Section 1475 of the Senate bill mandates a report to 
     Congress, within 180 days of enactment, on the status of 
     efforts to institute a sterile area access system that will 
     grant flight deck and cabin crews expedited access to secure 
     areas through screening checkpoints. The report must include 
     recommendations to implement the program for the domestic 
     aviation industry within 1 year after the report is 
     submitted, and fully deploy the system within 1 year of the 
     report's submission.
       The Conference substitute adopts the Senate provision, as 
     modified. It requires a report to Congress, within 180 days 
     of enactment of the Act, on the status of efforts to 
     institute a sterile area access system that will grant flight 
     deck and cabin crews expedited access to secure areas through 
     screening checkpoints. The report must include 
     recommendations to implement the program for the domestic 
     aviation industry within one year after the report is 
     submitted, and fully deploy the system within one year of the 
     report's submission. In addition, the provision lists the 
     appropriate Committees of jurisdiction in the provision's 
     reporting requirements.
     Section 1615. Law Enforcement Officer Biometric Credential
       There is no comparable House provision.
       Section 1477 of the Senate bill requires a credential or 
     system that incorporates biometric and other applicable 
     technologies to verify the identity of law enforcement 
     officers seeking to carry a weapon on board an aircraft.
       The Conference substitute adopts the Senate provision, as 
     modified. It establishes, within 18 months of enactment, of a 
     Federally managed, national registered armed law enforcement 
     program for armed law enforcement officers traveling by 
     commercial aircraft. It also requires that a report be 
     submitted to Congress within 180 days of the program's 
     implementation or a report explaining to Congress why the 
     program has not been implemented with a further report every 
     90 days until the program becomes operational.
     Section 1616. Repair Station Security
       There is no comparable House provision.
       Section 1473 of the Senate bill mandates that security 
     rules be put in place at foreign aviation repair stations, 
     within 90 days of passage of the Act, and that once security 
     rules are established, each repair station be reviewed and 
     audited within a 6-month period. If no action is taken within 
     90 days, the Administration will be prohibited from 
     certifying any further foreign repair stations until such 
     regulations are in place.
       The Conference substitute adopts the Senate provision, as 
     modified. It requires that security rules be put in place at 
     foreign aviation repair stations within 1 year of passage and 
     that any security rules established be reviewed and audited 
     within a 6 month period. If no action is taken within 1 year, 
     the Administration will be prohibited from certifying any 
     foreign repair stations that are not presently certified or 
     in the process of certification until such regulations are in 
     place.
     Section 1617. General Aviation Security
       There is no comparable House provision.
       Section 1474 of the Senate bill requires TSA to develop a 
     standardized threat and vulnerability assessment program for 
     general aviation (GA) airports within 1 year, and create a 
     program to perform such assessments at GA airports in the 
     United States on a risk-assessed basis. TSA must also study 
     the feasibility of a grant program for GA airport operators 
     to fund key projects to upgrade security at such facilities, 
     and establish that program if feasible. It further requires 
     TSA to develop a program, within 6 months, under which 
     foreign registered GA aircraft must submit passenger 
     information to TSA to be checked against appropriate watch 
     list databases prior to entering the United States.
       The Conference substitute adopts the Senate provision. It 
     requires TSA to develop a standardized threat and 
     vulnerability assessment program for GA airports within one 
     year, and create a program to perform such assessments at GA 
     airports in the United States on a risk-assessed basis.
       TSA must also study the feasibility of a grant program for 
     GA airport operators to fund key projects to upgrade security 
     at such facilities, and establish that program if feasible. 
     The provision requires TSA to develop a program, within six 
     months, under which GA aircraft originating from a foreign 
     location must submit passenger information to TSA to be 
     checked against appropriate watch list databases prior to 
     entering the United States.
     Section 1618. Extension of Authorization for Aviation 
         Security Funding.
       Section 405 of the House bill provides an extension for 
     aviation security funding through Fiscal Year 2011.
       Section 1461 of the Senate bill provides an extension for 
     aviation security funding through Fiscal Year 2009.
       The Conference substitute combines the House and Senate 
     provisions, as modified to extend aviation security funding 
     through Fiscal Year 2011, corresponding to the time limits 
     and other authorizations within the bill.

                       TITLE XVII--MARITIME CARGO

     Section 1701. Container Scanning and Seals
       Section 501 of the House bill prohibits a container from 
     entering the United States unless the container is scanned 
     and secured with a seal that uses the best available 
     technology, including technology to detect any breach of the 
     container and record the time of that breach. The Secretary 
     of Homeland Security (the Secretary) must establish standards 
     for scanning and sealing containers, and must review and 
     revise those standards at least once every two years. This 
     section requires all countries (those exporting 75,000 or 
     more twenty-foot equivalent units (TEU)) scan and seal 
     containers within three years of the date of enactment. All 
     other countries must scan and seal container within five 
     years. The Secretary may extend the deadline for a port by 
     one year.
       Section 905 of the Senate bill amends Section 232 of the 
     SAFE Port Act of 2006 to require the Secretary develop a 
     plan, which includes benchmarks, for scanning 100 percent of 
     the containers destined for the United States using 
     integrated scanning systems developed in the pilot program 
     authorized in that section. It also requires that the plan 
     incorporate existing programs, such as the Container Security 
     Initiative and the Customs-Trade Partnership Against 
     Terrorism.
       The Conference substitute adopts the House provision, as 
     modified. This provision amends Section 232 of the SAFE Port 
     Act of 2006 to require full-scale implementation of the 100 
     percent scanning system pilot program required by that 
     section no later than July 1, 2012. However, the Secretary is 
     authorized to extend the deadline by two years, and may renew 
     the extension in additional two-year increments, if the 
     Secretary certifies to Congress that particular conditions 
     can not be met. The provision provides a waiver for U.S. and 
     foreign military cargo. It also requires the Secretary 
     consult with other appropriate Federal agencies to ensure 
     that actions taken under this section do not violate 
     international trade obligations.
       This substitute also amends section 204(a)(4) of the SAFE 
     Port Act by requiring the Secretary to issue an interim rule 
     to establish minimum standards and procedures for securing 
     containers in transit to the United States not later than 
     April 1, 2008. If the Secretary fails to meet that deadline, 
     this section requires that effective October 15, 2008, and 
     until such interim rule is issued, all containers in transit 
     to the United States shall be required to meet the 
     requirements of International Organization for 
     Standardization Publicly Available Specification 17712 
     standard for sealing containers.
       The Conference expects the Secretary to work with the 
     Secretary of State, the United States Trade Representative, 
     and other appropriate Federal officials to work with our 
     international partners and international organizations such 
     as the World Customs Organization to establish an 
     international framework for scanning and securing containers.
       The Conference is aware that the Department of Energy (DOE) 
     has inherent capabilities to assess, through its cooperative 
     agreements with numerous countries and port authorities, the 
     adequacy of technical and operating procedures for cargo 
     container scanning. To ensure smooth continuation of DOE's 
     cooperative relationships with numerous countries and the 
     further expansion of the Megavolts Second Line of Defense 
     (SLEDDED) programs, the Conference expects that DHS and DOE 
     shall closely coordinate their activities and consult prior 
     to the establishment of technological or operational 
     standards by the Secretary of Homeland Security. As part of 
     the coordination requirement in this section, the Conference 
     expects that where the scanning technology standards affect 
     the DOE's Megavolts and SLEDDED programs, the Secretary shall 
     invite the DOE to participate in the development and final 
     review of such standards, and the Secretary of Homeland 
     Security shall seek the concurrence of the Secretary of 
     Energy.

 TITLE XVIII--PREVENTING WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                               TERRORISM

     Section 1801. Findings
       Section 1201 of the House bill contains findings and 
     recommendations of the 9/11 Commission.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision with 
     respect to the recommendations of the 9/11 Commission.

[[Page 20746]]

       The Conference notes that in late 2005 the members of the 
     9/11 Commission also made the following determinations: (1) 
     The United States Government has made insufficient progress, 
     and deserves a grade ``D'', on efforts to prevent weapons of 
     mass destruction (W.D.) proliferation and terrorism. (2) The 
     Cooperative Threat Reduction (CAR) Program has made 
     significant accomplishments but much remains to be done to 
     secure weapons-grade nuclear materials. The size of the 
     problem still dwarfs the policy response. Nuclear materials 
     in the Former Soviet Union still lack effective security 
     protection, and sites throughout the world contain enough 
     highly-enriched uranium to fashion a nuclear device but lack 
     even basic security features. (3) Preventing the 
     proliferation of W.D. and acquisition of such weapons by 
     terrorists warrants a maximum effort, by strengthening 
     counter-proliferation efforts, expanding the Proliferation 
     Security Initiative (PSI), and supporting the CAR Program. 
     (4) Preventing terrorists from gaining access to W.D. must be 
     an urgent national security priority because of the threat 
     such access poses to the American people. The President 
     should develop a comprehensive plan to dramatically 
     accelerate the timetable for securing all nuclear weapons-
     usable material around the world and request the necessary 
     resources to complete this task. The President should 
     publicly make this goal his top national security priority 
     and ensure its fulfillment. (5) Congress should provide the 
     resources needed to secure vulnerable materials as quickly as 
     possible.
     Section 1802. Definitions
       Section 1202 of the House bill defines terms used 
     throughout Title XII of the House bill.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment to clarify the term ``items of proliferation 
     concern'' and makes a further clarifying change.
     Section 1811. Repeal and Modifications of Limitations on 
         Assistance for Prevention of Weapons of Mass Destruction 
         Proliferation and Terrorism
       Section 1211 of the House bill repeals and modifies various 
     conditions on assistance to former Soviet States under the 
     Department of Defense Cooperative Threat Reduction (CAR) 
     Program and the Department of Energy Defense Nuclear 
     Nonproliferation programs. Section 1211 would also repeal the 
     cap on Department of Defense CAR program assistance outside 
     the former Soviet Union, with respect to prior year funds, as 
     well as Department of Energy nonproliferation program 
     assistance outside the former Soviet Union, while increasing 
     oversight of such programs.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that removes the repeal and modification of 
     various conditions on assistance to States outside the former 
     Soviet Union under the Department of Energy nonproliferation 
     programs; removes the repeal of the funding cap on Department 
     of Defense CAR assistance outside the former Soviet Union; 
     and makes a clarifying change.
       The Conference notes that substitute is consistent with the 
     recommendations of the 9/11 Commission regarding the need to 
     expand, improve, and otherwise fully support the Department 
     of Defense CAR Program and other efforts to prevent weapons 
     of mass destruction proliferation and terrorism.
       The Conference further notes that the National Defense 
     Authorization Act for Fiscal Year 2008, as passed by the 
     House of Representatives (Report 110-146, May 11, 2007) and 
     the National Defense Authorization Act for Fiscal Year 2008, 
     as reported by the Senate Armed Services Committee (Report 
     110-77, June 5, 2007) both address the matters contained in 
     this provision, including the funding cap on Department of 
     Defense CAR assistance outside the former Soviet Union, and 
     the Conferees expect that any final national defense 
     authorization act for Fiscal Year 2008, as enacted, will 
     further address these matters.
     Section 1821. Proliferation Security Initiative Improvements 
         and Authorities
       Section 1221 of the House bill expresses the sense of 
     Congress that, consistent with the recommendations of the 9/
     11 Commission, the President should strive to expand and 
     strengthen the Proliferation Security Initiative (PSI). 
     Section 1221 also requires the Secretary of Defense, in 
     coordination with the Secretary of State and the head of any 
     other Federal Department or Agency involved with PSI-related 
     activities, to submit to the Congressional defense Committees 
     a defined budget for the PSI, beginning with the Department 
     of Defense budget submission for fiscal year 2009. Section 
     1221 further requires the President to submit to the relevant 
     Congressional Committees, not later than 180 days after the 
     enactment of H.R.1, as passed by the House of Representatives 
     (H.R.1 EH, January 9, 2007), a report on the implementation 
     of section 1221, including steps taken to implement the 
     recommendations of the Government Accountability Office (GAO) 
     in the September 2006 Report titled ``Better Controls Needed 
     to Plan and Manage Proliferation Security Initiative 
     Activities''. Section 1221 also directs GAO to submit to 
     Congress, beginning in fiscal year 2008, an annual report on 
     its assessment of the progress and effectiveness of the PSI.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that narrows the scope of the sense of Congress; 
     clarifies the annual budget submission; requires each budget 
     submission to be accompanied by a report on PSI funding and 
     activities; changes the GAO report to a biannual report for 
     2007, 2009 and 2011; and makes clarifying and technical 
     changes.
       The Conference recognizes that the annual budget request 
     and the accompanying report for the PSI, required by the 
     substitute, may not be fully inclusive of all funding 
     required for PSI-related activities during the fiscal year 
     for the budget request given unknown PSI-related activities 
     that may arise throughout the fiscal year. However, the 
     Conference expects the budget request and accompanying report 
     to include all reasonably known obligations, costs and 
     expenditures for PSI-related activities for the fiscal year 
     of the budget request.
       The Conference believes that in order to effectively expand 
     and strengthen the PSI, the United States should work with 
     the international community to strengthen the PSI under 
     international law and other international legal authorities. 
     It is important for the United States and other PSI partners 
     to seek greater international recognition of the need to 
     conduct PSI-related activities within certain international 
     areas, so that international waters and airspace do not 
     become ``transit sanctuaries'' for countries, terrorist 
     organizations, and unscrupulous businesses and individuals 
     seeking to transfer items of proliferation concern. One 
     promising avenue could be to encourage the U.N.'s ``1540 
     Committee,'' which is charged with monitoring international 
     compliance with United Nations Security Council Resolution 
     1540 promoting nonproliferation, to recognize and endorse the 
     need and ability of PSI partners to monitor and, in 
     appropriate circumstances, interdict such shipments.
     Section 1822. Authority to Provide Assistance to Cooperative 
         Countries
       Section 1222 of the House bill authorizes the President to, 
     notwithstanding any other provision of law, provide Foreign 
     Military Financing, International Military Education and 
     Training, and draw down of excess defense articles and 
     services to any country, for a maximum of three years, that 
     cooperates with the United States and with other countries 
     allied with the United States to prevent the transport and 
     transshipment of items of proliferation concern in its 
     national territory or airspace or in vessels under its 
     control or registry. Such assistance would be provided to 
     enhance the capability of the recipient country to prevent 
     the transport and transshipment of items of proliferation 
     concern in its national territory or airspace, or in vessels 
     under its control or registry, including through the 
     development of a legal framework in that country, consistent 
     with any international laws or legal authorities governing 
     the PSI, to enhance such capability by criminalizing 
     proliferation, enacting strict export controls, and securing 
     sensitive materials within its borders, and to enhance the 
     ability of the recipient country to cooperate in operations 
     conducted with other participating countries. Such assistance 
     could only be provided in accordance with existing procedures 
     regarding reprogramming notifications under section 634A(a) 
     of the Foreign Assistance Act of 1961. Finally, this section 
     prohibits the transfer of any excess defense vessel or 
     aircraft to a country until reprogramming notice is made, if 
     that country has not agreed that it will support and assist 
     efforts by the United States to interdict items of 
     proliferation concern.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that narrows the authority and adds an exemption 
     to the limitation on an excess vessel or aircraft transfer if 
     such transfer does not involve significant military equipment 
     and the primary use of the vessel or aircraft will be for 
     counter-narcotics, counter-terrorism or counter-proliferation 
     purposes.
       The Conference intends that assistance provided pursuant to 
     this section shall remain subject to all existing law 
     regarding the authorities listed in subsection (b) of this 
     section. Thus, for example, the normal Congressional 
     notification and review procedures will apply, as well as 
     limitations related to human rights or military coups.
     Section 1831. Findings; Statement of Policy
       Section 1231 of the House bill contains findings and a 
     statement of policy regarding assistance to accelerate 
     programs to prevent weapons of mass destruction proliferation 
     and terrorism. Section 1231 emphasizes that it shall be the 
     policy of the United States, consistent with the 9/11 
     Commission's recommendations, to eliminate any obstacles to 
     timely obligating and executing the full amount of any 
     appropriated funds for threat reduction and nonproliferation 
     programs in order to accelerate and strengthen progress on 
     preventing weapons of mass destruction proliferation and 
     terrorism, and that such policy shall be implemented with 
     concrete measures such as those described in Title XII of 
     H.R. 1, as passed by the House of Representatives (H.R.1 EH, 
     January 9, 2007).

[[Page 20747]]

       There is no comparable Senate provision.
       The Conference substitute adopts the House provision with 
     respect to the policy of the United States to eliminate any 
     obstacles to timely obligating and executing the full amount 
     of any appropriated funds for threat reduction and 
     nonproliferation programs, and the implementation of such 
     policy with concrete measures.
       The Conference notes that certain U.S. threat reduction and 
     nonproliferation programs have in past years encountered 
     obstacles to timely obligating and executing the full amount 
     of appropriated funds, and have therefore maintained 
     unobligated and uncosted balances. Such obstacles have 
     included lack of effective policy guidance, limits on program 
     scope, practical inefficiencies, lack of cooperation with 
     other countries, and lack of effective leadership to overcome 
     such obstacles. The Conference also notes that although 
     currently most Department of Defense Cooperative Threat 
     Reduction and Department of Energy National Nuclear Security 
     Administration nonproliferation programs are timely 
     obligating and executing appropriated funds, the Department 
     of Defense and the Department of Energy should ensure that 
     this practice continues as such threat reduction and 
     nonproliferation programs are accelerated, expanded and 
     strengthened.
     Section 1832. Authorization of Appropriations for the 
         Department of Defense Cooperative Threat Reduction 
         Program
       Section 1232 of the House bill authorizes to be 
     appropriated to the Department of Defense Cooperative Threat 
     Reduction (CAR) Program such sums as may be necessary for 
     Fiscal Year 2007 for biological weapons proliferation 
     prevention; chemical weapons destruction at Shchuch'ye; and 
     to accelerate, expand and strengthen CAR Program activities.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that changes the fiscal year of the 
     authorization of appropriations to the Department of Defense 
     CAR Program to Fiscal Year 2008; and clarifies that any sums 
     appropriated pursuant to such authorization may not exceed 
     the amounts authorized to be appropriated for such purposes 
     by any national defense authorization act for Fiscal Year 
     2008.
       The Conference expects that any national defense 
     authorization act for 2008 will authorize specific amounts to 
     be appropriated for the Department of Defense CAR Program for 
     Fiscal Year 2008.
     Section 1833. Authorization of Appropriations for the 
         Department of Energy Programs to Prevent Weapons of Mass 
         Destruction Proliferation and Terrorism
       Section 1233 of the House bill authorizes to be 
     appropriated to the Department of Energy National Nuclear 
     Security Administration such sums as may be necessary for 
     Fiscal Year 2007 nonproliferation programs.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that changes the fiscal year of the 
     authorization of appropriations to Department of Energy 
     National Nuclear Security Administration nonproliferation 
     programs to Fiscal Year 2008; addresses specific purposes for 
     any such authorization of appropriations in report language 
     below; and clarifies that any sums appropriated pursuant to 
     such authorization may not exceed the amounts authorized to 
     be appropriated for such purposes by any national defense 
     authorization act for Fiscal Year 2008.
       The Conference expects that any national defense 
     authorization act for 2008 will authorize specific amounts to 
     be appropriated for Department of Energy National Nuclear 
     Security Administration nonproliferation programs for Fiscal 
     Year 2008.
       The Conference notes that high priority Department of 
     Energy National Nuclear Security Administration 
     nonproliferation programs that could use additional funding 
     include:
       (1) The Global Threat Reduction Initiative (GTRI), for (A) 
     the Russian research reactor fuel return program; (B) 
     conversion of research and test reactors from the use of 
     highly enriched uranium to low-enriched uranium; (C) 
     development of alternative low-enriched uranium fuels; (D) 
     international radiological threat reduction, including 
     security of vulnerable radiological sites, recovery and 
     removal of unsecured radiological sources, and activities to 
     address concerns and recommendations of the Government 
     Accountability Office, in its report of March 13, 2007 titled 
     ``Focusing on the Highest Priority Radiological Sources Could 
     Improve DOE's Efforts to Secure Sources in Foreign 
     Countries''; (E) emerging threats and sensitive nuclear 
     materials not covered by other GTRI programs (``gap 
     material''), including removal and disposal of highly-
     enriched uranium and plutonium, and development of mobile 
     equipment that enables rapid-response teams to quickly secure 
     and remove nuclear materials and denuclearize comprehensive 
     nuclear weapons programs; and (F) United States radiological 
     threat reduction, including development of alternative 
     materials for radiological sources that could be used in a 
     radiological dispersion device, known as a ``dirty bomb'', 
     and securing and storing excess and unwanted domestic 
     radiological sources within United States borders.
       (2) Nonproliferation and International Security, to be used 
     for (A) technical support to the six-party process on the 
     denuclearization of the Democratic People's Republic of 
     Korea; (B) application and deployment of technologies to 
     detect weapons of mass destruction (W.D.) proliferation and 
     verify W.D. dismantlement; (C) efforts to strengthen nuclear 
     safeguards, including improved safeguards analysis 
     capabilities for the International Atomic Energy Agency and 
     research and development on the next generation of nuclear 
     safeguards, and W.D. export control systems in foreign 
     countries, including technical and other support to the 
     International Atomic Energy Agency's efforts to build the 
     capacity of countries to implement United Nations Security 
     Council Resolution 1540; (D) training of border, customs and 
     other officials in foreign countries to detect and prevent 
     theft or other illicit transfer of W.D. or W.D.-related 
     materials; (E) re-direction of displaced scientists and other 
     personnel with expertise relating to W.D. research and 
     development to sustained civil employment, including in Iraq, 
     Libya and Russia; and (F) activities relating to the 
     Proliferation Security Initiative (PSI) and other W.D. 
     interdiction programs.
       (3) International Materials Protection and Cooperation, to 
     be used for (A) implementation of physical protection and 
     material control and accounting upgrades at sites; (B) 
     national programs and sustainability activities in Russia, 
     including activities to address concerns and recommendations 
     of the Government Accountability Office in its report of 
     February 2007 titled ``Progress Made in Improving Security at 
     Russian Nuclear Sites, but the Long-Term Sustainability of 
     U.S. Funded Security Upgrades is Uncertain''; (C) material 
     consolidation and conversion (including consolidation of 
     excess highly-enriched uranium and plutonium into fewer more 
     secure locations in Russia, and conversion of highly-enriched 
     uranium to low-enriched uranium in Russia); and (D) 
     deployment and support of radiation detection equipment at 
     key ports of transit, and implementation of Department of 
     Energy actions under the Security and Accountability for 
     Every Port Act of 2006 (also known as the SAFE Port Act; 
     Public Law 109-347), under the Second Line of Defense 
     Megavolts program.
       (4) Nonproliferation and Verification Research and 
     Development, to be used for (A) development of technologies 
     to detect and analyze activities relating to the global 
     proliferation of W.D., including plutonium reprocessing, 
     uranium enrichment, and special nuclear material movement; 
     and (B) nuclear explosion monitoring, including improved 
     nuclear material and debris analysis capabilities and 
     research and development on improved domestic and world-wide 
     nuclear material and debris collection capabilities.
     Section 1841. Office of the United States Coordinator for the 
         Prevention of Weapons of Mass Destruction Proliferation 
         and Terrorism
       Section 1241 of the House bill establishes a Presidential 
     Coordinator to improve the effectiveness of United States 
     strategy and policies on weapons of mass destruction (W.D.) 
     nonproliferation and threat reduction programs. The 
     Coordinator's duties would include serving as the principal 
     advisor to the President, formulating a comprehensive and 
     well-coordinated U.S. strategy for preventing W.D. 
     proliferation and terrorism, and coordinating inter-agency 
     action on these matters. The Coordinator would also conduct 
     oversight and evaluation of relevant programs across the 
     government and develop a comprehensive budget for such 
     programs. Section 1241 would also direct the Coordinator to 
     consult regularly with the Commission on the Prevention of 
     W.D. Proliferation and Terrorism, established under House 
     section 1251, and to submit to Congress, for Fiscal Year 2009 
     and each fiscal year thereafter, an annual report on the 
     strategic plan required under this section.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that strengthens the role of the Coordinator, by 
     providing that the Coordinator may attend and participate in 
     meetings of the National Security Council and the Homeland 
     Security Council. It also makes clarifying and technical 
     changes.
     Section 1842. Sense of Congress on United States-Russia 
         Cooperation and Coordination on the Prevention of Weapons 
         of Mass Destruction Proliferation and Terrorism
       Section 1242 of the House bill expresses a sense of 
     Congress that the President should request the President of 
     the Russian Federation to designate a Russian official having 
     the authorities and responsibilities for preventing weapons 
     of mass destruction (W.D.) proliferation and terrorism, 
     commensurate with those of the U.S. Coordinator for these 
     matters, established under House section 1241, and with whom 
     the U.S. Coordinator would interact.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that expresses a sense of Congress that the 
     President should engage Russia's President in a discussion of 
     the purposes and goals for the

[[Page 20748]]

     establishment of the Office of the United States Coordinator 
     for the Prevention of Weapons of Mass Destruction and 
     Terrorism; the authorities and responsibilities of the U.S. 
     Coordinator; and the importance of strong cooperation between 
     the U.S. Coordinator and a senior Russian official having 
     authorities and responsibilities for preventing W.D. 
     destruction and terrorism, and with whom the U.S. Coordinator 
     would interact.
     Section 1851. Establishment of Commission on the Prevention 
         of Weapons of Mass Destruction Proliferation and 
         Terrorism
       Section 1251 of the House bill establishes a 
     Congressional--Executive Commission on the Prevention of 
     Weapons of Mass Destruction Proliferation and Terrorism.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1852. Purposes of Commission
       Section 1252 of the House bill specifies that the purposes 
     of the commission established in House section 1251 are to 
     assess current United States and international 
     nonproliferation activities and provide a comprehensive 
     strategy and concrete recommendations for such activities.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1853. Composition of Commission
       Section 1253 of the House bill specifies the composition of 
     the commission established in House Section 1251, including 
     the appointment of co-chairmen of the commission.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that creates one chairman of the commission, 
     rather than co-chairmen, and makes other changes to 
     membership structure. The substitute also specifies 
     qualifications for commission members; and makes clarifying 
     the technical changes.
     Section 1854. Responsibilities of Commission
       Section 1254 of the House bill specifies the 
     responsibilities of the commission established under section 
     1251, including assessment of United States inter-agency 
     coordination and commitments to international regimes. House 
     Section 1254 also specifies that the commission shall 
     reassess, and where necessary update and expand on, the 
     conclusions and recommendations of the report titled ``A 
     Report Card on the Department of Energy's Nonproliferation 
     Programs with Russia'' of January 2001 (also known as the 
     ``Baker-Cutler Report'').
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1855. Powers of Commission
       Section 1255 of the House bill specifies the powers and 
     responsibilities of the commission established under section 
     1251 of that bill.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, with 
     an amendment that authorizes staff for the commission.
     Section 1856. Nonapplicability of Federal Advisory Committee 
         Act
       Section 1256 of the House bill specifies that the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     commission established under section 1251.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1857. Report
       Section 1257 of the House bill requires, not later than 180 
     days after the appointment of the commission established 
     under section 1251 of that bill, the commission to submit to 
     the President and Congress a final report containing the 
     commission's findings, conclusions and recommendations.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1858. Termination
       Section 1258 of the House bill requires all authorities 
     relating to the commission established under section 1251 to 
     terminate 60 days after the date on which the commission's 
     final report under House section 1257 is submitted.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision.
     Section 1859. Funding
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a provision that 
     specifically authorizes such sums as may be necessary for the 
     purposes of the activities of the Commission under this 
     title.

   TITLE XIX--INTERNATIONAL COOPERATION OF ANTITERRORISM TECHNOLOGIES

     Section 1901. Promoting Antiterrorism Capabilities through 
         International Cooperation
       There is no comparable House provision. However, the House 
     has twice passed legislation to establish a Science and 
     Technology Homeland Security International Cooperative 
     Programs Office (Office). Specifically, the House passed H.R. 
     4942 during the 109th Congress, and H.R. 884, a slightly 
     modified version of H.R. 4942, during the 110th Congress.
       Section 1301 of the Senate bill directs the Department of 
     Homeland Security's (Department) Under Secretary for Science 
     and Technology (S&T) to establish the Science and Technology 
     Homeland Security International Cooperative Programs Office. 
     The purpose of the Office is to facilitate the planning, 
     development, and implementation of international cooperative 
     activities, such as joint research projects, exchange of 
     scientists and engineers, training of personnel, and 
     conferences, in support of homeland security.
       The Conference substitute adopts the Senate provisions, 
     with minor modifications.
       The Conference substitute directs the Under Secretary for 
     S&T to establish an Office to promote cooperation between 
     entities of the United States and its allies in the global 
     war on terrorism for the purpose of engaging in cooperative 
     endeavors focused on the research, development, and 
     commercialization of high-priority technologies intended to 
     detect, prevent, respond to, recover from, and mitigate 
     against acts of terrorism and other high consequence events 
     and to address the homeland security needs of Federal, State, 
     and local governments. The Office, located within the 
     Department's S&T Directorate, is responsible for: promoting 
     cooperative research between the United States and its allies 
     on homeland security technologies; developing strategic 
     priorities for international cooperative activity and 
     addressing them through agreements with foreign entities; 
     facilitating the matching of U.S. entities engaged in 
     homeland security research with appropriate foreign research 
     partners; ensuring funds and resources expended for 
     international cooperative activity are equitably matched; and 
     coordinating the activities of the Office with other relevant 
     Federal agencies. This provision also requires the Office to 
     submit a report every five years to Congress on the S&T 
     Directorate's international cooperative activities.
       This provision also directs the Department to identify 
     critical knowledge and technology gaps, if any, and establish 
     priorities for international cooperative activities to 
     address such gaps. The Department shall coordinate with other 
     appropriate research agencies in order to avoid creating 
     redundant activities. Specifically, it is understood that 
     this new office must coordinate its activities with the 
     Department of State and shall not infringe on the Department 
     of State's role as the agency with primary responsibility 
     within the Executive Branch for coordination and oversight 
     over all major science or science and technology agreements 
     and activities between the United States and foreign 
     countries, in accord with Title V of the Foreign Relations 
     Authorization Act, Fiscal Year 1979. Further, any 
     international agreements that the Department wishes to 
     negotiate and conclude in support of international 
     cooperative activity relating to homeland security would be 
     subject to the Case-Zablocki Act (1 U.S.C. Sec. 112b).
     Section 1902. Transparency of Funds
       There is no comparable House provision.
       Section 1302 of the Senate bill requires the Director of 
     the Office of Management and Budget to ensure that all 
     Federal grants expended by the Office are done so in 
     compliance with the Federal Funding Accountability and 
     Transparency Act of 2006 (Public Law 109-282).
       The Conference substitute adopts the Senate provision.

                 TITLE XX--INTERNATIONAL IMPLEMENTATION

     Section 2001. Short Title
       The Conference substitute provides that Title XX of the Act 
     may be cited as the ``9/11 Commission International 
     Implementation Act of 2007.''
     Section 2002. Definitions
       Section 1402 of the House bill contains the definitions 
     applicable to Title XIV.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified.
     Section 2011. Findings; Policy
       Section 1411(a) of the House bill contains Congressional 
     findings.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It describes the importance of education that 
     teaches tolerance and respect for different beliefs as a key 
     element in eliminating Islamic terrorism. The findings note 
     that the National Commission on Terrorist Attacks Upon the 
     United States concluded that ensuring education opportunity 
     is essential to U.S. efforts to defeat global terrorism and 
     recommended that the United States join other nations in 
     providing funding for building and operating primary and 
     secondary schools in Muslim countries where the Governments 
     of those Countries commit to sensibly investing financial 
     resources in public education. The findings also note that 
     despite Congressional endorsement in the Intelligence Reform 
     and Terrorism Prevention Act of 2004 (Public Law 108-458), 
     such a program was not established. They also declare that it 
     is United States policy: to work toward the goal of

[[Page 20749]]

     dramatically increasing the availability of modern basic 
     education through public schools in predominantly Muslim 
     countries; to join with other countries in supporting the 
     International Muslim Youth Opportunity Fund; to offer 
     additional incentives to increase the availability of basic 
     education in Arab and predominantly Muslim countries; and to 
     work to prevent financing of education institutions that 
     support radical Islamic fundamentalism.
     Section 2012. International Muslim Youth Opportunity Fund
       Section 1412 of the House bill amends section 7114 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458) by establishing an International Muslim 
     Youth Opportunity Fund.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It states the purpose is to strengthen the public 
     educational systems in predominantly Muslim countries by 
     authorizing the establishment of an International Muslim 
     Youth Opportunity Fund and providing resources for the Fund 
     to help strengthen the public educational systems in 
     predominantly Muslim countries. The new section authorizes 
     the establishment of an International Muslim Youth 
     Opportunity Fund as either a separate fund in the U.S. 
     Treasury or through an international organization or 
     international financial institution; authorizes the Fund to 
     support specific activities, including assistance to enhance 
     modern educational programs; assistance for training and 
     exchange programs for teachers, administrators, and students; 
     assistance targeting primary and secondary students; 
     assistance for development of youth professionals; and other 
     types of assistance such as the translation of foreign books, 
     newspapers, reference guides, and other reading materials 
     into local languages and the construction and equipping of 
     modern community and university libraries; and authorizes 
     such sums as may be necessary for Fiscal Years 2008, 2009 and 
     2010 to carry out these activities. This subsection also 
     authorizes the President to carry out programs consistent 
     with these objectives under existing authorities, including 
     the Mutual Educational and Cultural Exchange Act. This 
     subsection requires the President to prepare a report to 
     Congress on the United States efforts to assist in the 
     improvement of education opportunities for Muslim children 
     and youths as well as the progress in establishing the 
     International Muslim Youth Opportunity Fund.
     Section 2013. Annual Report to Congress
       Section 1413(a) of the House bill directs the Secretary of 
     State to prepare an annual report.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It directs the Secretary of State to prepare an 
     annual report, not later than June 1 of each year until 
     December 31, 2009, on the efforts of predominantly Muslim 
     countries to increase the availability of modern basic 
     education and to close educational institutions that promote 
     religious extremism and terrorism. It also provides the 
     requirements for the annual report.
     Section 2014. Extension of Program to Provide Grants to 
         American Sponsored Schools in Predominantly Muslim 
         Countries
       Section 1414(a) of the House bill extends a program to 
     provide grants to American sponsored schools in predominantly 
     Muslim Countries.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It provides findings regarding the pilot program 
     established by section 7113 of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458). It 
     also states that this program for outstanding students from 
     lower-income and middle-income families in predominantly 
     Muslim countries is being implemented. It also provides for 
     amendments to that section to extend the program for Fiscal 
     Years 2007 and 2008, authorizes such sums as may be necessary 
     for such years, and requires a report in April 2008 about the 
     progress of the program.
     Section 2021. Middle East Foundation
       Section 1421(a) of the House bill deals with the Middle 
     East Foundation.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It states the purpose of this section which is to 
     support in the countries of the broader Middle East region, 
     the expansion of civil society, opportunities for political 
     participation of all citizens, protections for 
     internationally recognized human rights; educational reforms; 
     independent media, policies that promote economic 
     opportunities for citizens; the rule of law; and democratic 
     processes of government. It authorizes the Secretary of State 
     to designate an appropriate private, non-profit United States 
     organization as the Middle East Foundation and to provide 
     funding to the Middle East Foundation through the Middle East 
     Partnership Initiative. It also requires the Middle East 
     Foundation to award grants to persons located in the broader 
     Middle East region or working with local partners based in 
     the region to carry out projects that support the purposes 
     specified in subsection (a); and permits the Foundation to 
     make a grant to a Middle Eastern institution of higher 
     education to create a center for public policy. It also 
     establishes the private nature of the Middle East Foundation. 
     It prevents the funds provided to the Foundation from 
     benefitting any officer or employee of the Foundation, except 
     as salary or reasonable compensation for services. It also 
     provides that the Foundation may hold and retain funds 
     provided in this section in interest-bearing accounts. The 
     Conference substitute requires annual independent private 
     audits, permits audits by the Government Accountability 
     Office, and requires audits of the use of funds under this 
     section by the grant recipient. This subsection also directs 
     the Foundation to prepare an annual report on the 
     Foundation's activities and operations, the grants awarded 
     with funds provided under this section, and the financial 
     condition of the Foundation. It defines the geographic scope 
     of this section. It also repeals section 534(k) of Public Law 
     109-102.
     Section 2031. Advancing United States Interests Through 
         Public Diplomacy
       Section 1431(a) of the House bill deals with advancing U.S. 
     interests through public diplomacy.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It contains a finding that the National Commission 
     on Terrorist Attacks Upon the United States stated that the 
     U.S. government initiated some promising initiatives in 
     television and radio broadcasting to the Arab world, Iran, 
     and Afghanistan and that these efforts are beginning to reach 
     larger audiences. It includes a sense of Congress that the 
     United States needs to improve its communication of ideas and 
     information to people in countries with significant Muslim 
     populations, that public diplomacy should reaffirm the United 
     States commitment to democratic principles, and that a 
     significant expansion of United States international 
     broadcasting would provide a cost-effective means of 
     improving communications with significant Muslim populations. 
     It amends the United States International Broadcasting Act of 
     1994 to include a provision establishing special authority 
     for surge capacity for U.S. international broadcasting 
     activities to support United States foreign policy objectives 
     during a crisis abroad. The provision also authorizes such 
     sums to carry out the surge capacity authority and directs 
     the Broadcasting Board of Governors to provide information on 
     the use of this authority, as part of an existing annual 
     report to the President and Congress.
     Section 2032. Oversight of International Broadcasting
       There is no comparable House provision.
       Section 1913 of the Senate bill requires the Board of 
     Broadcasting Governors to transcribe into English all 
     broadcasts by Voice of America, Radio Free Europe/Radio 
     Liberty, Radio Free Asia, Radio Farad, Radio Saw, Alhurra, 
     and the Office of Cuba Broadcasting.
       The Conference substitute is a narrower version of the 
     Senate provision. It requires the Broadcasting Board of 
     Governors to initiate a pilot project to transcribe into the 
     English language news and information programming broadcast 
     by Radio Farad, Radio Saw, the Persia Service of the Voice of 
     America, and Alhurra. It also provides that this 
     transcription shall consist of random sampling and that the 
     transcripts shall be made available to Congress and the 
     public. In addition, it contains a reporting requirement and 
     authorizes $2 million in appropriations for this pilot 
     project.
     Section 2033. Expansion of United States Scholarship, 
         Exchange, and Library Programs in Predominantly Muslim 
         Countries
       Section 1433(a) of the House bill directs the Secretary of 
     State to prepare a report every 180 days until December 31, 
     2009, on the recommendations of the National Commission on 
     Terrorist Attacks Upon the United States,
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It directs the Secretary of State to prepare a 
     report every 180 days until December 31, 2009, on the 
     recommendations of the National Commission on Terrorist 
     Attacks Upon the United States for expanding U.S. 
     scholarship, exchange, and library programs in predominantly 
     Muslim countries, including a certification by the Secretary 
     of State that such recommendations have been implemented or 
     if a certification cannot be made, what steps have been taken 
     to implement such recommendations. It provides for the 
     termination of the duty to report when the certification 
     pursuant to subsection (a) has been submitted.
     Section 2034. U.S. Policy Toward Detainees
       Section 1434 of the House bill deals with detainees.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It provides findings that the 9/11 Commission 
     recommended that the United States develop a common coalition 
     approach toward detention and humane treatment of captured 
     terrorists, that a number of U.S. allies are conducting 
     investigations related to treatment

[[Page 20750]]

     of detainees and the Secretary of State has launched an 
     initiative to address the differences between the United 
     States and its allies. It expresses the sense of Congress 
     that the Secretary of State should continue to build on the 
     efforts to engage U.S. allies in compliance with Common 
     Article 3 of the Geneva Conventions and other applicable 
     legal principles, toward the detention and humane treatment 
     of individuals detained during Operation Iraqi Freedom, 
     Operation Enduring Freedom, or in connection with United 
     States counterterrorism operations. It also requires that the 
     Secretary keep the appropriate Congressional Committees fully 
     informed of the developments of these discussions and 
     requires a report on the progress made 180 days after 
     enactment of this Act.
     Section 2041. Afghanistan
       Section 1441 of the House bill relates to Afghanistan.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It describes Congressional findings, including that 
     a democratic, stable, and prosperous Afghanistan is vital to 
     the national security of the United States and to combating 
     international terrorism; that following the ouster of the 
     Taliban regime in 2001, the Government of Afghanistan has 
     achieved some notable successes; that there continue to be 
     factors that pose a serious and immediate threat to the 
     stability of Afghanistan; and that the United States and the 
     international community must significantly increase 
     political, economic, and military support to Afghanistan to 
     ensure its long-term stability and prosperity, and to deny 
     violent extremist groups such as al Qaeda sanctuary in 
     Afghanistan. It declares that it is the United States policy 
     to vigorously support the Government and people of 
     Afghanistan with assistance and training, particularly in 
     strengthening government institutions, as they continue to 
     commit to the path toward a government representing and 
     protecting the rights of all Afghans.
       Moreover, the Conference substitute declares that the 
     United States shall maintain its long-term commitment to the 
     people of Afghanistan by increased assistance and the 
     continued deployment of United States troops in Afghanistan. 
     This section also states that the President shall engage 
     aggressively with the Government of Afghanistan and NATO to 
     explore all additional options for addressing the narcotics 
     crisis in Afghanistan, including considering whether NATO 
     forces should change their rules of engagement regarding 
     counter-narcotics operations. In addition, this subsection 
     declares that the United States shall continue to foster 
     greater understanding and cooperation between the Governments 
     of Afghanistan and Pakistan. This provision makes it a 
     statement of Congress that the Afghanistan Freedom Support 
     Act of 2002 be reauthorized and updated. It also directs the 
     President to make increased effort to improve the capability 
     and effectiveness of police training programs, including, if 
     appropriate, by dramatically increasing the numbers of United 
     States and international police trainers, mentors, and police 
     personnel operating with Afghan civil security forces and 
     shall increase efforts to assist the Government of 
     Afghanistan in addressing corruption; and directs the 
     President to submit a report on the United States efforts to 
     fulfill the requirements in this subsection.
     Section 2042. Pakistan
       Section 1442 of the House bill relates to Pakistan's 
     commitment to fighting terrorism.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It contains Congressional findings describing the 
     Government of Pakistan's commitment to combating 
     international terrorism and the critical issues threatening 
     to disrupt the relationship between the United States and 
     Pakistan, undermine international security, and destabilize 
     Pakistan. The findings also describe the publicly stated 
     goals of Pakistan and their close agreement with the national 
     interests of the United States and the opportunity for a 
     shared effort in achieving correlative goals. This provision 
     also declares that it is the policy of the United States to 
     work with the Government of Pakistan to maintain its long-
     term strategic relationship; to combat international 
     terrorism; to end the use of Pakistan as a safe haven for 
     forces associated with the Taliban; to dramatically increase 
     funding for programs of the U.S. Agency for International 
     Development and the Department of State; to work with the 
     international community to secure additional financial and 
     political support to assist the Government of Pakistan in 
     building a moderate, democratic State; to facilitate greater 
     cooperation between the Governments of Afghanistan and 
     Pakistan; and to work with the Government of Pakistan to 
     prevent the proliferation of nuclear technology.
       The Conference substitute requires the President to submit 
     a report on the long-term strategy of the United States to 
     engage with the Government of Pakistan to address curbing the 
     proliferation of nuclear weapons technology, combating 
     poverty and corruption, building effective government 
     institutions, promoting democracy and the rule of law, 
     addressing the continued presence of the Taliban and other 
     violent extremist forces throughout the country, and 
     effectively dealing with Islamic extremism. This section also 
     prohibits the provision of United States security assistance 
     to Pakistan for Fiscal Year 2008 until the President 
     determines that the Government of Pakistan is committed to 
     eliminating the Taliban from operating in areas under its 
     sovereign control, is undertaking a comprehensive campaign to 
     accomplish this goal, and is making demonstrated, 
     significant, and sustained progress towards eliminating 
     support or safe haven for terrorists, and requires the 
     President to submit a justification for any such 
     determination made.
       Moreover, the Conference substitute provides a sense of 
     Congress that the national security interest of the United 
     States will best be served if the United States develops and 
     implements a long- term strategy to improve the United States 
     relationship with Pakistan and works with Pakistan to stop 
     nuclear proliferation. It also authorizes such sums as may be 
     necessary for assistance for Pakistan in various different 
     accounts. This subsection also states that the determination 
     of the level of funds authorized to be appropriated be 
     determined by the degree to which the Government of Pakistan 
     makes progress in preventing terrorist organizations from 
     operating in Pakistan and in implementing democratic reforms 
     and respecting the independence of the press and the 
     judiciary. In addition, it requires a report to be submitted 
     by the Secretary of State describing the degree to which such 
     progress has been made. It also extends waivers of foreign 
     assistance restrictions with respect to Pakistan through the 
     end of Fiscal Year 2008 and includes a sense of Congress that 
     extensions of these waivers beyond Fiscal Year 2008 should be 
     informed by whether Pakistan makes progress in rule of law 
     and other democratic reforms and whether it holds a 
     successful parliamentary election.
     Section 2043. Saudi Arabia
       Section 1443 of the House bill contains Congressional 
     findings that the Kingdom of Saudi Arabia.
       There is no comparable Senate provision.
       The Conference substitute adopts the House provision, as 
     modified. It contains Congressional findings that the Kingdom 
     of Saudi Arabia's record in the fight against terrorism has 
     been uneven and that the United States has a national 
     security interest in working with the Government of Saudi 
     Arabia to combat international terrorists. This section also 
     expresses a sense of Congress that the Government of Saudi 
     Arabia must undertake a number of political and economic 
     reforms in order to more effectively combat terrorism. In 
     addition, the Conference substitute requires a report on 
     United States long-term strategy to engage with the Saudi 
     Government to facilitate reform, to combat terrorism and to 
     provide an assessment on Saudi progress to becoming a party 
     to the International Convention for the Suppression of the 
     Financing of Terrorism and on the activities and authority of 
     the Saudi Nongovernmental National Commission for Relief and 
     Charity Work Abroad.

                 Title XXI--Advancing Democratic Values

     Section 2101. Short Title
       Section 2101 of the Senate bill states that this title may 
     be referred to as the, ``Advance Democratic Values, Address 
     Nondemocratic Countries, and Enhance Democracy Act of 2007,'' 
     or the ``ADVANCE Democracy Act of 2007.''
       There is no comparable House provision.
       The Conference substitute adopts the Senate provision, with 
     an amendment expanding and revising the findings in this 
     section.
       Title XXI, which was title XIX of the Senate bill and has 
     no comparable House provision other than section 1421 of the 
     House bill, comprises the ADVANCE Democracy Act of 2007, 
     which gives statutory standing to the U.S. framework to 
     strengthen and institutionalize U.S. support for the 
     promotion of democratic principles and practices worldwide. 
     Since the President's speech at the National Endowment for 
     Democracy on November 6, 2003, and his second inaugural 
     address on January 20, 2005, the Department of State has been 
     taking steps to strengthen U.S. Government democracy 
     promotion programs. The Conference recognizes that there are 
     already a number of experienced and dedicated career State 
     Department officials who focus their talents and energy on 
     democracy promotion. The Conference believes these efforts 
     could be strengthened by further institutionalizing the focus 
     on the protection of human rights and the promotion of 
     democracy. In this sense, the ADVANCE Democracy Act 
     represents Congressional support for the President's 
     commitment to democracy promotion and the Secretary of 
     State's ongoing efforts to change the State Department 
     through the ``Transformational Diplomacy Initiative.'' The 
     Conference intends that the Act will contribute to making 
     democracy promotion a core element of U.S. foreign policy 
     well beyond the time when the President's term of office has 
     been completed.

[[Page 20751]]

       The Conference substitute adopts the Senate provisions, 
     with amendments. The ADVANCE Democracy Act of 2007: (1) 
     establishes new Democratic Liaison Officers and requires the 
     Secretary to identify at least one office responsible for 
     supporting the new officers and providing liaison with both 
     U.S. and foreign non-governmental organizations; (2) endorses 
     long-term strategies for democracy promotion and human rights 
     protection for non-democratic and democratic transition 
     countries; (3) requires the Secretary to continue to enhance 
     training on democracy promotion and human rights protection 
     for members of the Foreign Service and other State Department 
     employees; (4) supports incentives for employees who excel in 
     democracy promotion and human rights protection; (5) 
     encourages Ambassadors and other members of the Foreign 
     Service to reach out to foreign audiences and engage robustly 
     with foreign government officials, media, non-governmental 
     organizations, and students in order to engage in discussions 
     about U.S. foreign policy, in particular democracy and human 
     rights; (6) supports efforts to work on democracy promotion 
     through international institutions, such as the UN Democracy 
     Fund and the Community of Democracies, and in cooperation 
     with other countries.
       The ADVANCE Democracy Act of 2007 represents several years 
     of discussion with outside activists, democracy 
     practitioners, and the Department of State. It seeks to 
     bridge the differences between individuals and non-
     governmental organizations that focus on the promotion of 
     democracy and those that focus on the protection of human 
     rights. The Conference believes that the work of these two 
     groups of reform advocates is mutually reinforcing.
     Section 2102. Findings
       There is no comparable House provision.
       Section 1902 of the Senate bill contains Congressional 
     findings describing the need to promote democracy throughout 
     the world. The findings note that the development of 
     universal democracy constitutes a long-term challenge that 
     goes through unique phases at different paces in individual 
     countries. It requires reforms that go well beyond the 
     holding of free elections to include, among other 
     institutions, a thriving civil society, a free media, and an 
     independent judiciary. The findings state that the 
     development of democracy must be led from within countries 
     themselves. This section also recognizes that democracy and 
     human rights activists are under increasing pressure from 
     authoritarian regimes and, in some cases, the governments of 
     democratic transition countries. While recognizing that 
     individuals, non-governmental organizations, and movements in 
     nondemocratic and democratic transition countries must take 
     the lead in making their own decisions, the findings state 
     that democratic countries have a number of instruments to 
     support such reformers and should cooperate with each other 
     to do so.
       The Conference substitute adopts the Senate provision, with 
     an amendment expanding and revising the findings in this 
     section.
     Section 2103. Statement of Policy
       There is no comparable House provision.
       Section 1903 of the Senate bill declares that it is United 
     States policy: To promote freedom, democracy and human rights 
     as fundamental components of United States foreign policy; to 
     promote democratic institutions, including an independent 
     judiciary, an independent and professional media, strong 
     legislatures and a thriving civil society; to provide 
     appropriate support to individuals, non- governmental 
     organizations, and movements living in nondemocratic 
     countries and democratic transition countries that aspire to 
     live in freedom; to provide political, economic, and other 
     support to foreign countries that are undertaking a 
     transition to democracy; and to strengthen cooperation with 
     other democratic countries in order to better promote and 
     defend shared values and ideals.
       The Conference substitute adopts the Senate provision, with 
     an amendment expanding and revising the statement of policy 
     in this section.
     Section 2104. Definitions
       There is no comparable House provision.
       Section 1904 of the Senate bill provides definitions for 
     use in this title.
       The Conference substitute adopts the Senate provision, with 
     an amendment adding or revising several definitions, 
     particularly by adding a definition of Nondemocratic or 
     Democratic Transition Country.

      Subtitle A--Activities to Enhance the Promotion of Democracy

     Section 2111. Democracy Promotion at the Department of State
       There is no comparable House provision.
       Section 1911 of the Senate bill provides for the 
     establishment of Democracy Liaison Officers. It describes the 
     responsibilities of the Democracy Liaison Officers and 
     indicates that these positions should be in addition to, and 
     not in replacement of, other positions. Section 1911 also 
     provides that nothing in this subsection may be construed as 
     affecting Chief of Mission authority under any provision of 
     law, including the President's direction to Chiefs of Mission 
     in the exercise of the President's constitutional 
     responsibilities.
       The Conference report adopts the Senate provision, with an 
     amendment.
       In addition to the Democracy Liaison Officers described 
     above, the Conference substitute requires that the Secretary 
     of State identify at least one office in the Bureau of 
     Democracy, Human Rights, and Labor (DRL) responsible for 
     working with democratic movements and facilitating the 
     transition of countries to democracy, including having at 
     least one employee in each office specifically responsible 
     for working with such movements. This section provides for 
     the identification of such an office; describes the 
     responsibilities of the Assistant Secretary for DRL in this 
     regard, which may be exercised through this office; and 
     provides that the Assistant Secretary shall identify officers 
     or employees in DRL that shall have expertise in and 
     responsibility for working with non-governmental 
     organizations, individuals and movements that are committed 
     to the peaceful promotion of democracy.
       The Conference substitute also describes actions that 
     Chiefs of Missions should take to promote democracy. It 
     provides for the development of a strategy to promote 
     democracy in nondemocratic or democratic transition countries 
     and to provide support to non-governmental organizations, 
     individuals and movements in such countries that are 
     committed to democratic principles, practices, and values. It 
     also provides for meetings with leaders of nondemocratic and 
     democratic transition countries regarding progress toward a 
     democratic form of governance, encourages chiefs of missions 
     to conduct meetings with civil society, interviews with media 
     and discussions with students and young people regarding 
     democratic governance.
       Moreover, the Conference substitute provides that the 
     Secretary of State should seek to increase the proportion of 
     DRL's nonadministrative employees who are members of the 
     Foreign Service and authorizes such sums as may be necessary 
     to carry out the provision.
       The Conferees believe that the Democracy Liaison Officers 
     provided for in subsection (a) of the Conference substitute 
     should be selected with the concurrence of the Assistant 
     Secretary of Democracy, Human Rights and Labor in order to 
     ensure that appropriate individuals are put in those posts. 
     The Conferees also believe that more senior officials at 
     posts where there are significant human rights abuses should 
     also be selected with input from the Assistant Secretary for 
     DRL.
       The Conferees note that the Department of State, as part of 
     its Transformational Diplomacy Initiative, intends to reduce 
     or eliminate labor officers in posts abroad. While not 
     objecting to normal rotations and assignments designed to 
     meet the Secretary of State's priorities and reflect the 
     changing needs of host countries, the Conferees are concerned 
     that eliminating such positions would signal an abandonment 
     of the core consensus that has existed since the 1980's that 
     the promotion of democracy includes the promotion of the 
     freedoms of association and organization by laborers.
       The Conferees observe that activists in other countries 
     sometimes are not sure whom to contact at the Department of 
     State to discuss local democracy and human rights issues; 
     thus, the Conferees intend that the Secretary of State have 
     discretion to either create a new office for this purpose or 
     to identify one or more existing offices with regional 
     expertise to be the points of contact for such activists. 
     With respect to the officers or employees in DRL that shall 
     have expertise in and responsibility for working with non-
     governmental organizations, individuals and movements that 
     are committed to the peaceful promotion of democracy, as 
     identified by the Assistant Secretary for DRL, the Conferees 
     expect that such individuals would serve in the office or 
     offices identified pursuant to subpart (b)(1).
       Finally, the Conferees believe that encouraging a greater 
     number of members of the Foreign Service to serve in DRL will 
     enhance democracy promotion.
     Section 2112. Democracy Fellowship Program
       There is no comparable House provision.
       Section 1912 of the Senate bill, requested by the 
     Department of State, provides for a program to obtain an 
     additional perspective on democracy promotion abroad by 
     working with appropriate Congressional offices and Committees 
     and in non-governmental and international organizations 
     involved in democracy promotion.
       The Conference substitute adopts the Senate provision, with 
     an amendment making some minor and conforming changes.
     Section 2113. Investigations of Violations of International 
         Humanitarian Law
       There is no comparable House provision.
       There is no comparable Senate provision.
       The Conference substitute adopts a compromise provision, 
     regarding violations of international humanitarian law by 
     nondemocratic countries. This section requires the President 
     to collect information regarding incidents that may 
     constitute crimes against humanity, genocide and other 
     violations of international humanitarian law. It requires 
     that the President consider what actions he can take to hold 
     governments and responsible individuals accountable.

[[Page 20752]]



Subtitle B--Strategies and Reports on Human Rights and the Promotion of 
                               Democracy

     Section 2121. Strategies, Priorities and Annual Report
       Section 1421 of the House bill provides a statement of 
     policy on the importance of promoting democracy human rights 
     and requires country-by-country strategies to address the 
     elements in the statement of policy.
       Section 1921 of the Senate bill changes the title of an 
     existing annual report, ``Supporting Human Rights and 
     Democracy'' (SHRD), which was required by the amendments made 
     by section 665 of the Foreign Relations Authorization Act of 
     2003, to ``Annual Report on Advancing Freedom and Democracy'' 
     and changes the date on which that report needs to be 
     submitted.
       The Conference substitute adopts the Senate provision, with 
     an amendment adding features of section 1421 of the House 
     bill and expanding the provisions of the Senate amendment. It 
     addresses the need for long-term strategies for the promotion 
     of democracy in nondemocratic and democratic transition 
     countries. This section commends the Secretary of State for 
     the ongoing country-specific strategies to promote democracy 
     and requires the Secretary of State to expand the development 
     of country-specific strategies to all nondemocratic and 
     democratic transition countries. It also provides that the 
     Secretary of State shall keep the appropriate Congressional 
     Committees fully and currently informed as strategies are 
     developed.
       The Conference substitute also provides that the report 
     shall include, as appropriate, United States: (1) priorities 
     for the promotion of democracy and the protection of human 
     rights for each non democratic country and democratic 
     transition country, developed in consultation with relevant 
     parties in such countries; and (2) specific actions and 
     activities of Chiefs of Missions and other U.S. officials to 
     promote democracy and protect human rights. This section also 
     extends the due date of the Annual Report.
       The Conferees believe that the Department of State's 
     process for implementing subpart (a)(2) should incorporate 
     both short-term objectives and a long-term approach to 
     democratization. The Conferees intend for the Department of 
     State to fulfill the requirement of keeping the appropriate 
     Congressional Committees informed by briefing the Committees, 
     upon request, in addition to any hearings that Congress may 
     conduct.
       The Conferees observe that the existing SHRD Report all too 
     often reflects a catalogue of program activities of the U.S. 
     Government over the past year without context or a 
     demonstration of what leadership the top U.S. representative 
     is exercising in the area of democracy promotion and human 
     rights protection. Also, the Report contains some country 
     sections where both U.S. priorities for assistance and 
     actions by U.S. officials are included. The Conferees expect 
     that such inconsistencies will be addressed by including both 
     components for each country described in the Report.
     Section 2122. Translation of Human Rights Reports
       There is no comparable House Provision.
       Section 1932 of the Senate bill requires the Secretary of 
     State to continue to expand the translation of various human 
     rights reports.
       The Conference substitute adopts the Senate provision, with 
     an amendment making the translations mandatory and making 
     other minor changes to the Senate language.
       The Conferees believe that the value of these reports will 
     be significantly enhanced if they are available in the 
     language of the country about which they are written. The 
     Conferees do not intend that the entire contents of all 
     reports be translated. Rather, the general overview and the 
     country-specific sections should be translated into the major 
     languages of each country. The Conferees recognize that the 
     Department of State's current focus is on the annual Country 
     Reports on Human Rights Practices required by the Foreign 
     Assistance Act. However, the Conferees believe that 
     translation of the other reports referred to in this section 
     would further expand the impact of the U.S. Government's work 
     on democracy and human rights.

Subtitle C--Advisory Committee on Democracy Promotion and the Internet 
                   Website of the Department of State

     Section 2131. Advisory Committee on Democracy Promotion
       There is no comparable House provision.
       Section 1931 of the Senate bill expresses the sense of 
     Congress commending the Secretary of State for establishing 
     the Advisory Committee on Democracy Promotion and expresses 
     the hope that the Committee will play a significant role in 
     transformational diplomacy by advising the Secretary of State 
     on all aspects of democracy promotion, including improving 
     the capacity of the Department of State and U.S. foreign 
     assistance programs.
       The Conference substitute adopts the Senate provision, with 
     an amendment making minor changes to the Senate language.
     Section 2132. Sense of Congress Regarding the Internet 
         Website of the Department of State
       There is no comparable House provision.
       Section 1932 of the Senate bill expresses the sense of 
     Congress that the Secretary of State should take additional 
     steps to enhance the Internet website for global democracy to 
     facilitate access by individuals and non-governmental 
     organizations in foreign countries to documents and other 
     media regarding democratic principles, practices, and values, 
     and the promotion and strengthening of democracy. This 
     website is intended to be an address where democracy 
     activists from around the world can obtain or be linked to 
     information on conditions in their country, materials on 
     successful democracy movements elsewhere and tactics for 
     peaceful democratic change, and other groups around the world 
     that engage in similar struggles for freedom. The website 
     should also include parts of other relevant human rights 
     reports, including translations where appropriate, such as 
     the annual Country Reports on Human Rights Practices, the 
     annual Religious Freedom Report, and the annual Report on 
     Trafficking in Persons.
       The Conference substitute adopts the Senate provision, with 
     an amendment making minor changes to the Senate language.

     Subtitle D--Training in Democracy and Human Rights; Incentives

     Section 2141. Training in Democracy Promotion and Protection 
         of Human Rights
       There is no comparable House provision.
       Section 1941 of the Senate bill provides that the Secretary 
     of State should continue to enhance training on democracy 
     promotion and the protection of human rights for members of 
     the Foreign Service and that such training should include 
     case studies and practical workshops.
       The Conference substitute adopts the Senate provision, with 
     an amendment. Pursuant to the amendment, the Secretary of 
     State is required to continue to enhance training on 
     democracy promotion and the protection of human rights and 
     provides that the training shall include appropriate 
     instruction and training materials regarding: (1) 
     international documents and U.S. policy regarding electoral 
     democracy and respect for human rights, including trafficking 
     in persons; (2) U.S. policy regarding the promotion and 
     strengthening of democracy around the world, with particular 
     emphasis on the transition to democracy in nondemocratic 
     countries; (3) ways to assist individuals and non-
     governmental organizations that support democratic 
     principles, practices, and values for any member, Chief of 
     Mission, or deputy Chief of Mission who is to be assigned to 
     a non-democratic or democratic transition country; and (4) 
     the protection of internationally recognized human rights, 
     including the protection of religious freedom and the 
     prevention of slavery and trafficking in persons. Section 
     1941 also provides that the Secretary of State shall consult 
     as appropriate with non-governmental organizations with 
     respect to the training required in this section, and 
     provides for a one-time report on how this section is being 
     implemented.
       The Conference notes that the Department of State is 
     working with members of the Community of Democracies on a 
     training manual relating to democracy promotion, which may 
     prove useful in the training efforts described in this 
     section. Such instruction may include: techniques for 
     conducting discussions with political leaders of such country 
     regarding United States policy with respect to promoting 
     democracy in foreign countries; treatment of opposition and 
     alternatives to repression; techniques to engage civil 
     society, students and young people regarding U.S. policy on 
     democracy and human rights; methods of nonviolent action and 
     the most effective manner to share such information with 
     individuals and non-governmental organizations; and the 
     collection of information regarding violations of 
     internationally-recognized human rights in coordination with 
     non-governmental human rights organizations, violations of 
     religious freedom, and government-tolerated or condoned 
     trafficking in persons.
       The Conference understands that certain training courses 
     already include some human rights training. However, the 
     Conference expects that the scope and content will be updated 
     and expanded as part of the Secretary of State's 
     Transformational Diplomacy Initiative and that continuous 
     improvements will be made well into the future.
     Section 2142. Sense of Congress Regarding Advance Democracy 
         Award
       There is no comparable House provision.
       Section 1942 of the Senate bill expresses the sense of 
     Congress that the Secretary of State should further 
     strengthen the capacity of the Department of State to carry 
     out results-based democracy promotion efforts through the 
     establishment of awards and other employee incentives, 
     including the establishment of an annual award to be known as 
     the ``Outstanding Achievements in Advancing Democracy 
     Award'', or the ``ADVANCE Democracy Award'', and should 
     establish procedures regarding such awards.
       The Conference substitute adopts the Senate provision.
     Section 2143. Personnel Policies at the Department of State
       There is no comparable House provision.
       Section 1943 of the Senate bill expresses the sense of 
     Congress that precepts for promotion for members of the 
     Foreign Service

[[Page 20753]]

     should include consideration of a candidate's experience or 
     service in the promotion of human rights and democracy.
       The Conference substitute adopts the Senate provision, with 
     an amendment to add suggested mechanisms for creating 
     incentives. It provides that in addition to other awards, 
     such as the award described in section 1942 in that bill, the 
     Secretary of State should increase incentives for members of 
     the Foreign Service and other State Department employees to 
     serve in assignments that have as their primary focus the 
     promotion of democracy and the protection of human rights, 
     including awarding performance pay to members of the Foreign 
     Service, considering whether a member of the Service serving 
     in such assignments as a basis for promotion into the Senior 
     Foreign Service, and providing for Foreign Service Awards.

           Subtitle E--Cooperation with Democratic Countries

     Section 2151. Cooperation with Democratic Countries
       There is no comparable House provision.
       Section 1951 of the Senate bill expresses the sense of 
     Congress that the United States should forge alliances with 
     other democratic countries to promote democracy, protect 
     fundamental freedoms around the world, promote and protect 
     respect for the rule of law, pursue common strategies at 
     international organizations and multilateral institutions and 
     provide support to countries undergoing democratic 
     transitions. Section 1951 of the Senate bill also supports 
     the initiative of the Government of Hungary establishing the 
     International Center for Democratic Transition.
       The Conference substitute adopts the Senate provision, with 
     an amendment making substantive and technical changes. The 
     Conference substitute expresses the sense of Congress that 
     the Community of Democracies should establish a more formal 
     mechanism for carrying out work between ministerial meetings, 
     such as through the creation of a permanent secretariat with 
     an appropriate staff and should establish a headquarters. The 
     Conference substitute authorizes the Secretary of State to 
     detail personnel to such a secretariat or any country that is 
     a member of the Convening Group of the Community of 
     Democracies and provides that the Secretary of State should 
     establish an office of multilateral democracy promotion to 
     address the Community of Democracies, pursue initiatives 
     coming out of the UN Democracy Caucus, and enhance the UN 
     Democracy Fund. The Conference substitute also authorizes an 
     appropriation of $1,000,000 for each of Fiscal Years 2008, 
     2009, and 2010 to the Secretary of State for a grant to the 
     International Center for Democratic Transition and provides 
     additional guidance as to the purposes of the Centers work, 
     including providing grants or voluntary contributions to 
     develop, adopt, and pursue programs and campaigns to promote 
     the peaceful transition to democracy in non-democratic 
     countries.

             Subtitle F--Funding for Promotion of Democracy

     Section 2161. The United Nations Democracy Fund
       There is no comparable House provision.
       Section 1961 of the Senate bill expresses the sense of 
     Congress that the United States should continue to contribute 
     to and work with other countries to enhance the goals and 
     work of the UN Democracy Fund.
       The Conference substitute adopts the Senate provision, with 
     an amendment adding an authorization for the UN Democracy 
     Fund. It authorizes $14,000,000 for a United States 
     contribution to the Fund for each of the Fiscal Years 2008 
     and 2009, as requested by the President.
     Section 2162. United States Democracy Assistance Programs
       There is no comparable House provision.
       Section 1962 of the Senate bill states the sense of 
     Congress that the purpose of the Human Rights and Democracy 
     Fund should be to support innovative programming, media, and 
     materials designed to uphold democratic principles, support 
     and strengthen democratic institutions, promote human rights 
     and the rule of law, and build civil societies in countries 
     around the world. Section 1962 of the Senate bill provides 
     findings reflecting that democracy assistance has many 
     different forms and there is a need for greater clarity on 
     the coordination and delivery mechanisms for U.S. democracy 
     assistance. It also provides that the Secretary of State and 
     the Administrator of the U.S. Agency for International 
     Development (USAID) should develop guidelines, in 
     consultation with the appropriate Committees of Congress, to 
     clarify for U.S. diplomatic and consular missions abroad the 
     need for coordination and the appropriate mix of delivery 
     mechanisms for democracy assistance.
       The Conference substitute adopts the Senate provision, with 
     an amendment including minor and technical amendments and 
     adding a sense of Congress regarding mechanisms for 
     delivering assistance. The Conference substitute provides 
     that United States support for democracy is strengthened by 
     using a variety of different instrumentalities, such as the 
     National Endowment for Democracy, the United States Agency 
     for International Development, and the Department of State, 
     and expresses the view that the Human Rights and Democracy 
     Fund (HRDF), established pursuant to the Freedom Investment 
     Act of 2002, should continue to be used for innovative 
     approaches to promoting democracy and human rights. It also 
     addresses the different mechanisms that are used to define 
     the relationship between the U.S. Government and 
     organizations that deliver services or materials to foreign 
     individuals or communities.
       The Conference believes that the HRDF should remain a 
     flexible instrument to exploit emerging opportunities while 
     at the same time be managed in a cost-effective way and 
     coordinated at the country-level to complement the mix of 
     other democracy assistance being provided.
       The U.S. Government works with a variety of organizations, 
     including non-profit groups such as non-governmental 
     organizations and private and voluntary organizations, and 
     provides them with government funding to carry out U.S. 
     foreign assistance goals. The government also hires for-
     profit private sector companies to implement foreign 
     assistance programs. The use of such companies has been 
     growing over the last 15 years. In general, as in other areas 
     of government procurement, the use of contracts, cooperative 
     agreements, and grants are the three main acquisition 
     mechanisms through which agreement is reached on appropriate 
     benchmarks for success, the level of U.S. government funding 
     that will be spent, and the specific programs and projects to 
     be undertaken.
       In the democracy field, there are a number of U.S. 
     Government entities that manage programs. The Democracy, 
     Human Rights and Labor Bureau at the State Department 
     oversees a large number of programs. The Coordinator's office 
     for the Independent States of the Former Soviet Union 
     oversees programs carried out through the Freedom Support 
     Act. The Middle East Partnership Initiative, also managed by 
     the State Department, promotes democracy and other 
     development priorities in the Middle East. For its part, 
     USAID has a specialized unit focused on providing democracy 
     and governance assistance worldwide. Because of a constrained 
     operating budget that limits permanent staff, USAID has 
     increasingly relied on contract mechanisms, although it 
     continues to use grants and cooperative agreements. The 
     National Endowment for Democracy also provides extensive 
     assistance worldwide. More recently, a Millennium Challenge 
     Corporation (MCC) threshold program is providing electoral 
     reform assistance in Jordan.
       Non-profit organizations sometimes apply for and receive 
     funding from several or all of these U.S. Government 
     entities, most often through grants and cooperative 
     agreements and sometimes through contracts. Private sector 
     companies work almost exclusively through contracts. Both 
     private sector and non-profit organizations bring unique 
     strengths to the effort. Private sector companies have the 
     ability to hire employees with specialized skills to provide 
     technical assistance on a short-notice basis. Non-profit 
     organizations often develop longer-term contacts in the 
     field, country expertise, and have revenue sources other than 
     U.S. Government funding that allows for a more sustained 
     approach to underlying problems. With this multitude of 
     actors, mechanisms, and foreign assistance ``spigots,'' and 
     given the characteristics of such actors, the Conference 
     requests that the Secretary of State and the Administrator of 
     USAID develop appropriate guidelines to assist U.S. missions 
     in their efforts to coordinate democracy assistance in-
     country and select appropriate mechanisms for its effective 
     implementation.

           TITLE XXII--INTEROPERABLE EMERGENCY COMMUNICATIONS

     Section 2201. Interoperable Emergency Communications
       There is no comparable House provision.
       Section 1481(a) of the Senate bill generally amends Section 
     3006 of the Deficit Reduction Act of 2005 (Public Law 109-
     171) (DRA) by deleting statutory language that currently 
     limits funding to systems that either use, or interoperate 
     with systems that use, public safety spectrum in the 700 
     megahertz band (specifically, 764-776 megahertz and 794-806 
     megahertz), and inserting new subsections providing 
     Congressional direction with respect to eligible activities 
     under NTIA's administration of the $1 billion public safety 
     grant program.
       New 3006(a) of the DRA establishes the scope of the 
     permissible grants under the program and permits NTIA to 
     allocate up to $100 million for the establishment of 
     strategic technology reserves that will provide 
     communications capability and equipment for first responders 
     and other emergency personnel in the event of an emergency or 
     a major disaster. In addition to strategic technology 
     reserves, this subsection describes a broad range of topics 
     related to improving communications interoperability that 
     will be eligible for assistance under the grant program 
     including, Statewide or regional planning and coordination, 
     design and engineering support, technical assistance and 
     training, and the acquisition or deployment of interoperable 
     communications equipment, software, or systems.
       New 3006(b) of the DRA reiterates the requirement imposed 
     under section 4 of the

[[Page 20754]]

     Call Home Act of 2006, which, subject to the receipt of 
     qualified applications as determined by the Assistant 
     Secretary, would require that not less that $1 billion be 
     awarded no later than September 30, 2007.
       New 3006(C) of the DRA requires that funding distributions 
     be made among the several States consistent with section 
     1014(C)(3) of the USA PATRIOT Act (0.75 percent to each 
     State) to ensure a fair distribution of funds. It also 
     requires that the calculation of risk factors be based upon 
     an ``all-hazards'' approach that recognizes the critical need 
     for effective emergency communications in response not only 
     to terrorist attacks, but also to a variety of natural 
     disasters.
       New section 3006(d) of the DRA establishes requirements for 
     grant applicants, including an explanation of how assistance 
     would improve interoperability and a description of how any 
     equipment or system request would be compatible or consistent 
     with certain relevant sections of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (6 U.S.C.Sec. 194(a)(1)).
       New section 3006(e) of the DRA directs NTIA to rely on the 
     most current grant guidance issued under the Department of 
     Homeland Security (the Department or DHS) SAFECOM program to 
     promote greater consistency in the criteria used to evaluate 
     interoperability grant applications.
       New section 3006(f) of the DRA establishes criteria for 
     grants of equipment, supplies, systems and related 
     communications service related to support for strategic 
     technology reserve initiatives. This section also requires 
     that funding for strategic reserves be divided between block 
     grants to States in support of state reserves and grants in 
     support of Federal reserves at each Federal Emergency 
     Management Agency (FEMA) regional office and in each of the 
     noncontiguous States.
       New section 3006(g) of the DRA permits the Assistant 
     Secretary to encourage the development of voluntary consensus 
     standards for interoperable communications systems, but 
     precludes the Assistant Secretary from requiring any such 
     standard.
       New section 3006(h) of the DRA permits NTIA to seek 
     assistance from other Federal agencies where appropriate in 
     the administration of the grant program.
       New section 3006(I) of the DRA requires the Inspector 
     General of the Department of Commerce annually to assess the 
     management of NTIA's interoperability grant program.
       New section 3006(j) of the DRA requires NTIA, in 
     consultation with the DHS and the FCC, to promulgate final 
     program rules for implementation within 90 days of enactment.
       New section 3006(k) of the DRA creates a rule of 
     construction clarifying that nothing in this section 
     precludes funding for interim or long-term Internet Protocol-
     based solutions, notwithstanding compliance with the Project 
     25 standard.
       Section 1481(b) of the Senate bill requires the FCC, in 
     coordination with the Assistant Secretary of Commerce for 
     Communications and Information and the Secretary of DHS, to 
     report on the feasibility of a redundant system for emergency 
     communications no later than one year after enactment.
       Section 1481(c) of the Senate bill directs the Assistant 
     Secretary of Commerce for Communications and Information, in 
     consultation with the Secretary of DHS and the Secretary of 
     Health and Human Services, to create a joint advisory 
     committee to examine the communications capabilities and 
     needs of emergency medical care facilities. The joint 
     advisory committee will assess current communications 
     capabilities at emergency care facilities, options to 
     accommodate the growth of communications services used by 
     emergency medical care facilities, and options to better 
     integrate emergency medical care communications systems with 
     other emergency communications networks. The joint advisory 
     committee would be required to report its findings to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Energy and 
     Commerce, within six months after the date of enactment.
       Section 1481(d) of the Senate bill provides authorization 
     for not more than 10 pilot projects to improve the 
     capabilities of emergency communications systems in emergency 
     medical care facilities. Grants would be administered by the 
     Assistant Secretary of Commerce for Communications and 
     Information, would require a fifty percent match, would not 
     exceed $2 million per grant, and would be geographically 
     distributed to the maximum extent possible.
       The Conference substitute adopts the Senate provision, with 
     modifications. Most notably, it authorizes NTIA, in 
     consultation with DHS, to permit up to $75 million of the 
     Public Safety Interoperability Communications grant to be 
     used by States to contribute to a strategic technology 
     reserve. The substitute permits waivers to States that have 
     already implemented a strategic technology reserve or can 
     demonstrate higher priority public safety communications 
     needs. The Conference substitute adopts the Senate's 
     provisions relating to the FCC's vulnerability assessment and 
     report on emergency communications back-up system. The 
     Conference agreed to set a deadline of 180 days for FCC to 
     deliver its findings to Congress. The Conference substitute 
     also adopts the Senate's provision that directs the Assistant 
     Secretary of Commerce for Communications and Information, in 
     consultation with the Secretary of Homeland Security (the 
     Secretary) and the Secretary of Health and Human Services, to 
     establish a joint advisory committee that will assess current 
     communications capabilities at emergency care facilities.
       The Conference substitute provides for reports and audits 
     by the Inspector General of the Department of Commerce. With 
     respect to grants under this title, these provisions 
     strengthen oversight over this program and clarify the intent 
     of the conferees that the provisions in Sec. 2022 of the 
     Homeland Security Act (added by Title I) do not apply to this 
     grant program.
     Section 2202. Clarification of Congressional Intent
       There is no comparable House provision.
       Section 1482(a) of the Senate bill would amend Title VI of 
     the Post-Katrina Emergency Management Reform Act of 2006 
     (Public Law 109-295) by including a savings clause clarifying 
     the concurrent authorities of the Department of Commerce and 
     the Federal Communications Commission (FCC), with respect to 
     their existing authorities related public safety and 
     promoting the safety of life and property through the use of 
     communications. Section 1482(b) of the Senate bill makes the 
     effective date of this savings clause as if enacted with the 
     Department of Homeland Security Appropriations for FY 2007 
     (Public Law 109-295).
       The Conference substitute modifies the Senate language to 
     clarify that it is Congress' intent that Federal Departments 
     and Agencies work cooperatively in a manner that does not 
     impede the implementation of the requirements of Title III 
     and Title XXII of this Act and Title VI of Public Law 109-
     295.
       The Conference observes that Federal Departments and 
     Agencies should not be precluded or obstructed from carrying 
     out their other authorities relating to other emergency 
     communications matters.
     Section 2203. Cross Border Interoperability Reports
       There is no comparable House provision.
       Section 1483 of the Senate bill would require the FCC, in 
     conjunction with the DHS, the Office of Management and 
     Budget, and the Department of State to report, not later than 
     90 days after enactment on the status of efforts to 
     coordinate cross border interoperability issues and the re-
     banding of 800 megahertz radios with Canada and Mexico. The 
     FCC would further be required to report on any communications 
     between the FCC and the Department of State regarding 
     possible amendments to legal agreements and protocols 
     governing the coordination process for license applications 
     seeking to use channels and frequencies above Line A, to 
     submit information about the annual rejection rate over the 
     last 5 years by the United States for new channels and 
     frequencies above Line A, and to suggest additional 
     procedures and mechanisms that could be taken to reduce the 
     rejection rate for such applications. The FCC would be 
     required to provide regular updates of the report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Energy and Commerce 
     of treaty negotiations related to the re-banding of 800 
     megahertz radios until the appropriate treaty has been 
     revised with Canada and Mexico.
       The Conference Report adopts the Senate provision.
     Section 2204. Extension of Short Quorum.
       There is no comparable House provision.
       Section 1484 of the Senate bill permits two members of the 
     Consumer Product Safety Commission to constitute a quorum for 
     6 months following enactment of this Act.
       The Conference substitute adopts the Senate provision.
     Section 2205. Requiring Reports To Be Submitted to Certain 
         Committees.
       Section 1485 of the Senate bill requires under provisions 
     of this Act to be shared with other relevant Congressional 
     Committees.
       The Conference substitute modifies the Senate reporting 
     provision and agrees that in addition to the Committees 
     specifically enumerated to receive the reports under this 
     Title, any report transmitted under the provisions of this 
     Title shall also be transmitted to the appropriate 
     Congressional Committees as provided for by under section 
     2(2) of the Homeland Security Act (6 U.S.C.Sec. 101).

                     TITLE XXIII--911 MODERNIZATION

     Section 2301. Short Title
       The Conference substitute provides that Title XXIII may be 
     cited as the ``911 Modernization Act.''
     Section 2302. Funding for Program
       There is no comparable House provision.
       Section 1702 of the Senate bill amends Section 3011 of 
     Public Law 109-171 (47 U.S.C. Sec. 309) to give borrowing 
     authority to the Assistant Secretary of the National 
     Telecommunications and Information Administration (NTIA) for 
     not more than $43,500,000 to implement the Enhance 911 Act of 
     2004 (Public Law 108-494). The Assistant Secretary must 
     reimburse the Treasury without interest once funds are 
     deposited into the Digital Television Transition and Public 
     Safety Fund.

[[Page 20755]]

       The Conference substitute adopts the Senate provision.
     Section 2303. NTIA Coordination of E-911 Implementation
       There is no comparable House provision.
       Section 1703 of the Senate bill amends Section 158(b)(4) of 
     the National Telecommunications and Information 
     Administration Organization Act (47 U.S.C. Sec.  942(b)(4)) 
     to require the Assistant Secretary and the Administrator of 
     the National Highway Safety Administration to issue 
     regulations that allow a portion of the Phase II 
     E-911 Implementation Grants to be prioritized for Public 
     Safety Answering Points (PSAPs) that were not capable of 
     receiving 911 calls on the date of the enactment of the 
     Enhanced 911 Act of 2004 (Public Law 108-494). These grants 
     will be used for the incremental cost of upgrading from Phase 
     I to Phase II compliance. Such grants are subject to all the 
     other requirements of this section, such as the fifty percent 
     matching funds requirement and the requirement to certify 
     that no portion of any E-911 charges imposed by an 
     applicant's State or taxing jurisdiction are being obligated 
     or expended for any purpose other than for which such charges 
     were designated.
       The Conference substitute adopts the Senate provision.

                  TITLE XXIV--MISCELLANEOUS PROVISIONS

     Section 2401. Quadrennial Homeland Security Review
       There is no comparable House provision. However, the House 
     passed a similar provision in H.R. 1684, the Department of 
     Homeland Security Authorization Act for Fiscal Year 2008, 
     which called for a Comprehensive Homeland Security Review at 
     the beginning of each new Presidential Administration.
       Section 1606 of the Senate bill included a provision to 
     conduct a Quadrennial Homeland Security Review, requiring the 
     Department of Homeland Security (the Department or DHS) to 
     conduct a comprehensive examination of the national homeland 
     security strategy.
       The Conference substitute adopts a compromise provision 
     which in several places clarifies the scope of the Review. It 
     requires the Secretary of Homeland Security (the Secretary) 
     to carry out the first Quadrennial Homeland Security Review 
     in Fiscal Year 2009, and every four years thereafter. The 
     Conferees believe that this review should take place in the 
     first year after a Presidential election, so that a new 
     Administration can act upon the results of the review or a 
     re-elected Administration can review its policies and 
     emerging threats and revise the review accordingly. This also 
     recognizes the time span during which a new President will 
     appoint and the Senate will confirm senior departmental 
     officials who will be responsible for this review. The 
     provision also requires the Secretary to consult with other 
     Federal agencies, key officials of the Department, and other 
     relevant governmental and non-governmental entities in 
     carrying out the review.
       The Conference substitute also describes the required 
     content of the review, including an update of the national 
     homeland security strategy, a prioritization of homeland 
     security mission areas, and the identification of a budget 
     plan for executing these missions. These review activities 
     are intended to strengthen the linkages between strategy and 
     execution at the Department of Homeland Security. The 
     Conference substitute requires the Secretary to submit to 
     Congress a report regarding the results of the Quadrennial 
     Homeland Security Review no later than December 31 of the 
     year in which a review is conducted, and also to make that 
     report public consistent with the protection of national 
     security and other sensitive matters. It also requires the 
     Department to begin in Fiscal Year 2007 and Fiscal Year 2008 
     to prepare to carry out this review, and to report to 
     Congress on these preparations.
       The Conference understands that the Administration already 
     has begun this process by including a request for designated 
     funding in the President's Fiscal Year 2008 request for the 
     Office of Policy to lead this initiative.
     Section 2402. Sense of the Congress Regarding the Prevention 
         of Radicalization Leading to Ideologically-Based Violence
       There is no comparable House provision.
       Section 1602 of the Senate bill includes extensive findings 
     concerning the threat of radicalization in the United States 
     as a component of the struggle against the transnational 
     ideological movement of Islamist extremism. This provision 
     also makes recommendations to the Secretary regarding 
     measures that can be taken to prevent radicalization and 
     concludes that the Secretary should work across the Federal 
     government and with State and local officials to make 
     countering radicalization a priority.
       The Conference substitute adopts the Senate provision with 
     changes. The changes include modifying the terms used to 
     describe radicalization so that it is clear that protected 
     behavior is not included. As a result, radicalization is 
     referred to as radicalization that leads to ideologically-
     based violence. Additionally, while the language is intended 
     to address the global struggle against violent extremism, the 
     language is broadened to include ideologically-based violence 
     from all sources.
     Section 2403. Requiring Reports To Be Submitted to Certain 
         Committees
       There is no comparable House provision.
       Section 1485 of the Senate bill contained a provision to 
     provide certain Senate Committees with reports required 
     elsewhere in the bill.
       The Conference substitute adopts part of the Senate 
     provision with updated references to certain reports.
     Section 2404. Demonstration Project
       There is no comparable House provision.
       Section 805 of the Senate bill requires the Secretary to 
     establish a demonstration project to conduct demonstrations 
     of security management systems.
       The Conference substitute adopts the Senate provision, 
     while modifying it so that it defines ``security management 
     system'' as a set of guidelines that address the security 
     assessment needs of critical infrastructure and key resources 
     that are consistent with a set of generally accepted 
     management standards ratified and adopted by a standards 
     making body.
     Section 2405. Under Secretary for Management of the 
         Department of Homeland Security
       There is no comparable House provision, as Members believe 
     that this issue would be best addressed as part of a 
     comprehensive homeland security authorization bill.
       Section 1601 of the Senate bill elevates the position of 
     Under Secretary for Management to a Deputy Secretary, adds 
     qualifications for the position, and gives this newly created 
     position a five-year term with removal only for performance 
     reasons.
       The Conference substitute adopts a modified version of the 
     Senate provision by enhancing the Under Secretary's authority 
     while maintaining the position at the Under Secretary level 
     without a fixed term. Specifically, the substitute designates 
     the Under Secretary for Management as the Chief Management 
     Officer and the Secretary's principal advisor on management-
     related matters. It also requires the Under Secretary to 
     facilitate strategic management planning, integration, 
     transformation, and transition and succession for the 
     Department.
       The Conference substitute requires the Under Secretary to 
     develop a transition and succession plan, and authorizes the 
     incumbent Under Secretary to remain in the position, after a 
     Presidential election, until a successor is confirmed in the 
     subsequent Administration. It also expresses the Sense of the 
     Congress that a newly-elected President should encourage the 
     incumbent Under Secretary to remain until a successor is 
     confirmed, to provide continuity during the transition. The 
     legislation also requires that the Under Secretary be 
     accountable for his or her performance--each year, the Under 
     Secretary must enter into a performance agreement with the 
     Secretary and be subject to an evaluation based on the same. 
     The substitute also enhances the President's ability to 
     attract qualified candidates, as it elevates the Under 
     Secretary for Management to Level II of the Executive 
     Schedule.
       Because the Department is newly formed, and in light of the 
     integration and management challenges it has faced to date, 
     the Conference is concerned about the impending transition 
     between Administrations and believes this transition should 
     be well-planned and smoothly implemented. The Conference 
     believes that this position requires a person with strong 
     management skills and a proven track record of success, and 
     this legislation requires the selection of a person with such 
     experience.

                                Earmarks

       Pursuant to House Rule XXI, clause 9(a)(4), the Committee 
     of Conference attaches a list of earmarks included in the 
     Conference Report to accompany H.R. 1, including a list of 
     Congressional earmarks, limited tax benefits, and limited 
     tariff benefits in the conference report or joint statement 
     (and the name of any Member, Delegate, Resident Commissioner, 
     or Senator who submitted a request to the House or Senate 
     Committees of jurisdiction for each respective item included 
     in such list) or a statement that the proposition contains no 
     Congressional earmarks, limited tax benefits, or limited 
     tariff benefits, as follows:

------------------------------------------------------------------------
            Section                     Earmark              Member
------------------------------------------------------------------------
Section 1204..................  National Disaster       Sen. Daniel K.
                                 Preparedness Training   Inouye
                                 Center, University of
                                 Hawaii.
                                Transportation          Sen. Wayne
                                 Technology Center,      Allard
                                 Inc..                  Sen. Ken Salazar
                                                        Rep. John T.
                                                         Salazar
                                                        Rep. Ed
                                                         Perlmutter

[[Page 20756]]

 
Section 1205..................  Connecticut             Sen. Christopher
                                 Transportation          J. Dodd
                                 Institute, University  Sen. Joseph I.
                                 of Connecticut.         Lieberman
                                National Transit        Sen. Robert
                                 Institute, Rutgers,     Menendez
                                 the State University   Sen. Frank R.
                                 of New Jersey.          Lautenberg
                                Mack-Blackwell          Sen. Mark L.
                                 National Rural          Pryor
                                 Transportation Study
                                 Center at the
                                 University of
                                 Arkansas.
                                Homeland Security       Sen. Charles E.
                                 Management Institute,   Shumer
                                 Long Island            Rep. Peter T.
                                 University.             King
                                Texas Southern          Rep. Al Green
                                 University in
                                 Houston, Texas.
                                Tougaloo College......  Rep. Bennie G.
                                                         Thompson
------------------------------------------------------------------------

     Bennie G. Thompson,
     Loretta Sanchez,
     Norman Dicks,
     Jane Harman,
     Nita M. Lowey,
     Sheila Jackson-Lee,
     Donna M. Christensen,
     Bob Etheridge,
     James R. Langevin,
     Henry Cuellar,
     Al Green,
     Ed Perlmutter,
     Peter T. King,
     Mark Souder,
     Tom Davis,
     Daniel E. Lungren,
     Michael T. McCaul,
     Charles W. Dent,
     Ike Skelton,
     John M. Spratt, Jr.,
     Jim Saxton,
     John D. Dingell,
     Edward J. Markey,
     Tom Lantos,
     Gary Ackerman,
     Ileana Ros-Lehtinen,
     John Conyers,
     Zoe Lofgren,
     Henry A. Waxman,
     Wm. Lacy Clay,
     Silvestre Reyes,
     Bud Cramer,
     Bart Gordon,
     David Wu,
     Peter A. DeFazio,
     John B. Larson,
                                Managers on the Part of the House.

     Joe Lieberman,
     Carl Levin,
     Daniel K. Akaka,
     Tom Carper,
     Mark Pryor,
     Chris Dodd,
     Daniel K. Inouye,
     Joe Biden,
     Managers on the Part of the Senate.

                          ____________________