[House Report 107-615]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-615

======================================================================



 
PROVIDING FOR CONSIDERATION OF H.R. 5005, HOMELAND SECURITY ACT OF 2002

                                _______
                                

   July 25, 2002.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Ms. Pryce of Ohio, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 502]

    The Committee on Rules, having had under consideration 
House Resolution 502, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of H.R. 5005, 
the Homeland Security Act of 2002, under a structured rule. The 
rule provides 90 minutes of general debate equally divided and 
controlled by the chairman and ranking minority member of the 
Select Committee on Homeland Security. The rule waives all 
points of order against consideration of the bill.
    The rule provides that the amendment in the nature of a 
substitute recommended by the Select Committee on Homeland 
Security now printed in the bill shall be considered as an 
original bill for the purpose of amendment and shall be 
considered as read. The rule waives all points of order against 
the bill, as amended.
    The rule provides that no amendment to the committee 
amendment in the nature of a substitute shall be in order 
except those printed in this report and amendments en bloc 
described in section 3 of the resolution.
    The rule provides that each amendment printed in this 
report may be offered only in the order printed in this report, 
may be offered only by a Member designated in this report, 
shall be considered as read, shall be debatable for the time 
specified in this report equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, 
and shall not be subject to a demand for division of the 
question in the House or in the Committee of the Whole, except 
as specified in section 4 of the resolution. The rule waives 
all points of order against the amendments printed in this 
report or amendments en bloc described in section 3 of the 
resolution.
    The rule provides that it shall be in order at any time for 
the chairman of the Select Committee on Homeland Security or 
his designee to offer amendments en bloc consisting of 
amendments printed in this report not earlier disposed of or 
germane modifications of any such amendment.
    The rule provides that amendments en bloc offered pursuant 
to the rule shall be considered as read (except that 
modifications shall be reported), shall be debatable for 20 
minutes equally divided and controlled by the chairman and 
ranking minority member of the Select Committee on Homeland 
Security or their designees, shall not be subject to amendment, 
and shall not be subject to a demand for division of the 
question in the House or in the Committee of the Whole.
    The rule further provides that for the purpose of inclusion 
in such amendments en bloc, an amendment printed in the form of 
a motion to strike may be modified to the form of a germane 
perfecting amendment to the text originally proposed to be 
stricken.
    The rule provides that the original proponent of an 
amendment included in such amendments en bloc may insert a 
statement in the Congressional Record immediately before the 
disposition of the amendments en bloc.
    The rule provides that the Chairman of the Committee of the 
Whole may recognize for consideration of any amendment printed 
in the report out of the order printed, but not sooner than one 
hour after the chairman of the Select Committee on Homeland 
Security or his designee announces from the floor a request to 
that effect. Finally, the rule provides one motion to recommit 
with or without instructions.
    The waiver of all points or order against the consideration 
of the bill includes a waiver of clause 4(a) of rule XIII 
(requiring a three-day layover of the committee report), which 
is needed because H. Rept. 107-609 was filed by the Select 
Committee on Homeland Security on the calendar day of 
Wednesday, July 24, and the bill may be considered by the House 
as early as Thursday, July 25. The waiver of all points of 
order against consideration of the bill and against the 
committee amendment in the nature of a substitute includes a 
waiver of section 306 of the Congressional Budget Act 
(prohibiting consideration of legislation within the 
jurisdiction of the Committee on the Budget unless reported by 
the Budget Committee). The waiver of all points of order 
against the committee amendment in the nature of a substitute 
includes a waiver of clause 4 of rule XXI (prohibiting 
appropriations in legislative bills), which is needed because 
provisions contained in section 811 of the committee amendment 
are in violation of this rule.

           SUMMARY OF AMENDMENTS MADE IN ORDER UNDER THE RULE

    Oberstar/Costello/Roemer #56: Retains FEMA as an 
independent agency with responsibility for natural disaster 
preparedness, response, and recovery. (20 minutes)
    Young (AK) #64: Restores the Federal Emergency Management 
Agency as an entity. Ensures that FEMA carries out all of its 
statutory missions, not just those related to homeland 
security. Continues FEMA's role as the lead agency for the 
Federal Response Plan established under Executive Order 12148 
and 12656. (20 minutes)
    Waxman #94: Codifies and strengthens the White House Office 
of Homeland Security which was established by executive order 
in October, 2001. Defines the functions of the Office. The head 
of the Office is appointed by the President with advice and 
consent of the Senate. Specifically subjects the Office and its 
Director to oversight by Congress. (40 minutes)
    Cox #52: Provides specific, illustrative examples of the 
types of critical cybersecurity infrastructure which the 
Undersecretary for Information Analysis and Infrastructure 
Protection must develop a plan to protect. (10 minutes)
    Israel #18: Creates an Advisory Committee for the 
Undersecretary for Science and Technology. (10 minutes)
    Rivers #16: Creates an Office of Inquires within the 
Department of Science and Technology which would act as a point 
of entry for individuals or companies seeking guidance on how 
to pursue proposals to develop or deploy products that would 
contribute to homeland security. (10 minutes)
    Woolsey #19: Adds a new section to the bill creating a 
Homeland Security Institute as a federally-funded research and 
development center. (10 minutes)
    Cardin #27: Preserves the existing Customs Service as a 
``distinct entity'' within the DHS. The amendment does not 
affect the bill's provisions which protect certain revenue and 
trade act enforcement functions of the Customs Service. (10 
minutes)
    Hunter #60: Sense of Congress that completion of the San 
Diego Border Fence Project is a priority of DHS. (10 minutes)
    Ose #7: Requires the Under Secretary of Management to 
develop a plan, within one year, to consolidate and co-locate 
regional and field offices in each of the cities with an 
existing regional or field office transferred to the DHS. (10 
minutes)
    Velazquez/Issa/Wilson #49: Ensures that the Department of 
Homeland Security has procurement goals for small business that 
are no less than the statutory minimum. Ensures that those 
employees responsible for this goal attainment have a 
corresponding criteria in their performance evaluations. (10 
minutes)
    Hastings (FL) #2: Adds a new section to title VII that 
directs the Secretary to comply with laws protecting equal 
employment opportunity and provides whistle blower protections. 
States that nothing in the Act shall be construed as exempting 
the DHS from the requirements that are applicable to all other 
executive agencies. (10 minutes)
    Rogers (KY) #87: Ensures that if the Federal Law 
Enforcement Training Center is transferred to the Department of 
Justice, the Department of Justice will not alter the 
operations of the Center. (10 minutes)
    Rogers (KY) #41: Grants permissive authority to the DHS 
Secretary for the creation of a Joint Interagency Homeland 
Security Taskforce. (10 minutes)
    Rush #25: Establishes within the Office of the Secretary an 
office to oversee and coordinate developmental programs for and 
relationships with states and local governments. (10 minutes)
    Shays/Watson #23: Requires biennial reports to Congress on 
the status of homeland security preparedness, including a 
report on each state. Requires a report to Congress, within one 
year of enactment, ensuring the maintenance of core functions 
transferred to the DHS and recommending statutory changes to 
facilitate implementation of the reorganization effort. (10 
minutes)
    Shays #85: Similar to the Morella amendment approved by the 
Government Reform Committee, except for an additional section 
stating that the provisions of the amendment would not apply 
where the President determines in writing that such application 
would have a substantial adverse impact on the Department's 
ability to protect homeland security. (20 minutes)
    Morella #40: Allows existing employees transferred into 
DHS, who have the same job responsibilities, to still belong to 
a union. If their responsibilities changed so they were 
directly involved in the war on terrorism, they could be 
exempted from being part of a union by the President. Those 
employees or units that did not have union representation 
before the transfer would not be granted any extra protections 
by this amendment. (20 minutes)
    Quinn #82: Clarifies workers rights in section 761. (20 
minutes)
    Waxman/Frost #95: Deletes the entire human resources which 
exempt employees of the new Department from Title 5. Provides 
that federal employees transferred to the new agency could not 
have their pay reduced. Strengthens whistleblower protections. 
(20 minutes)
    Armey #69: En Bloc Manager's Amendment. Technical 
amendments requested by Energy and Commerce Committee. 
Technical amendments requested by Science Committee. Technical 
correction regarding Oil Spill Liability Trust Fund requested 
by Transportation and Infrastructure Committee. Technical 
amendments relating to DHS privacy officer. Technical 
correction relating to biological agent registration function 
requested by Agriculture Committee. An amendment to create a 
program to encourage and support innovative solutions to 
enhance homeland security (requested by Mr. Davis and Ms. 
Harman). An amendment to enhance non-federal cybersecurity 
activities of Under Secretary for Information Analysis and 
Infrastructure Protection (requested by Science Committee). An 
amendment to establish ``NET Guard'' program to promote 
volunteer activities in support of information technology 
protection activities (requested by Science Committee). An 
amendment striking section 814 (relating to incidental 
transfers by the Director of OMB) requested by Appropriations 
Committee. A Technical correction to section 761 to insert a 
proper reference. An amendment inserting sense of Congress 
provision reaffirming the Posse Comitatus Act. An amendment 
clarifying that this Act preempts no state or local law, except 
that any preemption authority vested in agencies or officials 
transferred to DHS shall be transferred to DHS. An amendment 
inserting text of ``Federal Information Security management Act 
of 2002'' (recommended by Committee on Government Reform at 
request of Mr. Davis), which creates a new Title XI to address 
Federal information security. Transfers to the DHS the computer 
information security standards currently promulgated by the 
Secretary of Commerce and permanently reauthorizes the agency-
wide risk management information security approach in the 
Government Information Security Reform Act of 2000 (GISRA) and 
eliminates GISRA's two-year sunset. Second, it would strengthen 
reforms initiated by the existing GISRA by clarifying terms, 
correcting mistakes, and streamlining requirements. Requires 
the development, promulgation, and compliance with minimum 
mandatory management controls for securing information. 
Includes Amendments to subtitle F of title VII (relating to 
liability management) intended to clarify availability of 
liability protections afforded by this title. An amendment 
inserting a new section to reinstate liability cap for aviation 
screening companies. A clarification responsibilities of the 
DHS and the DHS Counternarcotics Officer with regard to 
narcotics interdiction. A clarification of the eligibility 
criteria for participation in certain extramural research 
programs of the Department. Includes technical amendment to 
section 766, regarding regulatory authority. New section 
expressing the sense of Congress regarding funding of trauma 
systems. (40 minutes)
    Turner #88: Indemnifies companies who sell anti-terrorism 
technologies to the federal government, as well as, state and 
local governments, in a manner similar to the protection 
afforded under P.L. 85-804. (40 minutes)
    Oberstar/Menendez #55: Strikes sec. 409 of the bill 
(Extension of Airline Baggage Screening Deadline). (45 minutes)
    Schakowsky/Kucinich/Mink #51: Strikes subtitle C of section 
VII. Strikes section 762 from the bill and replaces with 
language that provides remedies for retaliation against 
whistleblowers. (30 minutes)
    Davis, Tom #83: Expands the existing FOIA exemption in the 
homeland security legislation to other federal agencies as the 
Secretary of Homeland Security determines as appropriate. (20 
minutes)
    Chambliss/Harman/Shays/Menendez #9: Directs that critical 
threat information be shared between federal law enforcement 
and intelligence agencies with state and local personnel, 
including granting security clearances to appropriate state and 
local personnel. Directs the President to develop procedures by 
which federal agencies will share homeland security information 
with state and local personnel and vice versa. Requires that 
any information that is shared must not be used for any 
unauthorized purpose and the procedures must ensure the 
security and confidentiality of the information as well as the 
removal or deletion of obsolete or erroneous information. 
Protects information collected by the census. Allows certain 
types of information to be shared with appropriate state and 
local offices consistent with guidelines issued by the Attorney 
General and Director of Central Intelligence. (20 minutes)
    Weldon (FL) #54: Amends sections 402 and 403 of the bill to 
transfer the visa office from the Department of State to the 
DHS. Provides for a two-year transition period during which the 
Foreign Service Officers issuing visas would be detailed to the 
DHS while new DHS personnel are trained and deployed abroad. 
Preserves the Secretary of State's authority to deny a visa 
based in the national interest of the U.S. Prohibits judicial 
review of consular decisions to refuse a visa. (20 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Oberstar of Minnesota, 
               or His Designee, Debatable for 20 Minutes

  Strike section 402(5) of the bill (and redesignate subsequent 
paragraphs accordingly).
  In section 501(1) of the bill, strike ``, major disasters, 
and other emergencies''.
  In the matter preceding subparagraph (A) of section 501(3) of 
the bill, strike ``and major disasters''.
  In section 501(3)(D) of the bill, strike ``or major 
disaster''.
  In section 501(4) of the bill--
          (1) strike ``and major disasters'';
          (2) strike ``or major disasters''; and
          (3) strike ``or disasters''.
  In section 501(5) of the bill, strike ``and disasters''.
  Strike section 501(6) of the bill and insert the following:
          (6) In consultation with the Director of the Federal 
        Emergency Management Agency, consolidating existing 
        Federal Government emergency response plans for 
        terrorist attacks into the Federal Response Plan 
        referred to in section 506(b).
  In section 502(1) of the bill, strike the text after ``(1)'' 
and preceding ``Integrated'' and insert ``The''.
  At the end of title V of the bill, insert the following (and 
conform the table of contents of the bill accordingly):

SEC. 506. ROLE OF FEDERAL EMERGENCY MANAGEMENT AGENCY.

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


2. An Amendment To Be Offered by Representative Young of Alaska, or His 
                   Designee, Debatable for 20 Minutes

  Strike section 402(5) of the bill (and redesignate subsequent 
paragraphs accordingly).
  In section 502(1) of the bill, strike ``Except as provided in 
section 402, the'' and insert ``The''.
  At the end of title 5 of the bill, add the following (and 
conform the table of contents of the bill accordingly):

SEC. 506. ROLE OF FEDERAL EMERGENCY MANAGEMENT AGENCY.

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


 3. An Amendment To Be Offered by Representative Waxman of California, 
               or His Designee, Debatable for 40 Minutes

  At the end of the bill add the following new title:

                 TITLE XI--OFFICE OF HOMELAND SECURITY

SEC. 1101. ESTABLISHMENT.

  (a) In General.--There is established in the Executive Office 
of the President an Office of Homeland Security.
  (b) Director.--The head of the Office shall be the Director 
of Homeland Security, who shall be appointed by the President 
with advice and consent of the Senate.

SEC. 1102. MISSION.

  As provided in Executive Order 13228, the mission of the 
Office of Homeland Security is to develop and coordinate the 
implementation of a comprehensive national strategy to secure 
the United States from terrorist threats or attacks.

SEC. 1103. FUNCTIONS.

  As provided in Executive Order 13228, the functions of the 
Office of Homeland Security shall be to coordinate the 
executive branch's efforts to detect, prepare for, prevent, 
protect against, respond to, and recover from terrorist attacks 
within the United States. Such functions shall include--
          (1) working with executive departments and agencies, 
        State and local governments, and private entities to 
        ensure the adequacy of the national strategy for 
        detecting, preparing for, preventing, protecting 
        against, responding to, and recovering from terrorist 
        threats or attacks within the United States and 
        periodically reviewing and coordinating revisions to 
        that strategy as necessary;
          (2) identifying priorities and coordinating efforts 
        for collection and analysis of information regarding 
        threats of terrorism against the United States, 
        including ensuring that all executive departments and 
        agencies that have intelligence collection 
        responsibilities have sufficient technological 
        capabilities and resources and that, to the extent 
        permitted by law, all appropriate and necessary 
        intelligence and law enforcement information relating 
        to homeland security is disseminated to and exchanged 
        among appropriate executive departments and agencies;
          (3) coordinating national efforts to prepare for and 
        mitigate the consequences of terrorist threats or 
        attacks within the United States, including 
        coordinating Federal assistance to State and local 
        authorities and nongovernmental organizations to 
        prepare for and respond to terrorist threats or attacks 
        and ensuring the readiness and coordinated deployment 
        of Federal response teams to respond to terrorist 
        threats or attacks;
          (4) coordinating efforts to prevent terrorist attacks 
        within the United States;
          (5) coordinating efforts to protect the United States 
        and its critical infrastructure from the consequences 
        of terrorist attacks;
          (6) coordinating efforts to respond to and promote 
        recovery from terrorist threats or attacks within the 
        United States;
          (7) coordinating the domestic response efforts of all 
        departments and agencies in the event of an imminent 
        terrorist threat and during and in the immediate 
        aftermath of a terrorist attack within the United 
        States and acting as the principal point of contact for 
        and to the President with respect to coordination of 
        such efforts;
          (8) in coordination with the Assistant to the 
        President for National Security Affairs, reviewing 
        plans and preparations for ensuring the continuity of 
        the Federal Government in the event of a terrorist 
        attack that threatens the safety and security of the 
        United States Government or its leadership;
          (9) coordinating the strategy of the executive branch 
        for communicating with the public in the event of a 
        terrorist threat or attack within the United States and 
        coordinating the development of programs for educating 
        the public about the nature of terrorist threats and 
        appropriate precautions and responses; and
          (10) encouraging and inviting the participation of 
        State and local governments and private entities, as 
        appropriate, in carrying out the Offices's functions.

SEC. 1104. ACCESS TO INFORMATION.

  As provided in Executive Order 13288, executive agencies, 
shall, to the extent permitted by law, make available to the 
Office of Homeland Security all information relating to 
terrorist threats and activities within the United States.

SEC. 1105. BUDGET APPROVAL.

  (a) Authority.--The Director of the Office of Homeland 
Security shall--
          (1) review the budget requests submitted to the 
        President by all executive agencies with homeland 
        security responsibilities; and
          (2) if a budget request fails to conform to the 
        objectives set forth in the national strategy described 
        in section 1102, may disapprove such budget request.
  (b) Effect of Disapproval.--In any case in which a budget 
request is disapproved under subsection (a)--
          (1) the Director shall notify the appropriate 
        Committees of Congress; and
          (2) the President may not include such budget request 
        in the annual budget submission to Congress unless the 
        President makes an express determination that including 
        such request is in the national interest.

SEC. 1106. ADMINISTRATION.

  As provided in Executive Order 13288, the Office of 
Administration within the Executive Office of the President 
shall provide the Office of Homeland Security with such 
personnel, funding, and administrative support, to the extent 
permitted by law and subject to the availability of 
appropriations, as necessary to carry out the provisions of 
this title.

SEC. 1107. DETAIL AND ASSIGNMENT.

  As provided in Executive Order 13288, the heads of executive 
agencies are authorized, to the extent permitted by law, to 
detail or assign personnel of such agencies to the Office of 
Homeland Security upon request of the Director of Homeland 
Security.

SEC. 1108. OVERSIGHT BY CONGRESS.

  The establishment of the Office of Homeland Security within 
the Executive Office of the President shall not be construed as 
affecting access by Congress, or any committee of Congress, 
to--
          (1) any information, document, or study in the 
        possession of, or conducted by or at the direction of, 
        the Director; or
          (2) personnel of the Office.
                              ----------                              


 4. An Amendment To Be Offered by Representative Cox of California, or 
                 His Designee, Debatable for 10 Minutes

  In section 201(5), insert the following before the period at 
the end: ``including, but not limited to, power production, 
generation, and distribution systems, information technology 
and telecommunications systems (including satellites), 
electronic financial and property record storage and 
transmission systems, emergency preparedness communications 
systems, and the physical and technological assets that support 
such systems''.
                              ----------                              


5. An Amendment To Be Offered by Representative Israel of New York, or 
                 His Designee, Debatable for 10 Minutes

  At the end of title III, insert the following new section:

SEC. 309. HOMELAND SECURITY SCIENCE AND TECHNOLOGY ADVISORY COMMITTEE.

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


6. An Amendment To Be Offered by Representative Rivers of Michigan, or 
                 Her Designee, Debatable for 10 Minutes

    At the end of title III, insert the following new section:

SEC. 309. INQUIRIES.

    (a) Office.--The Secretary, acting through the Under 
Secretary for Science and Technology, shall establish an office 
to serve as a point of entry for individuals or companies 
seeking guidance on how to pursue proposals to develop or 
deploy products that would contribute to homeland security. 
Such office shall refer those seeking guidance on Federal 
funding, regulation, acquisition, or other matters to the 
appropriate unit of the Department or to other appropriate 
Federal agencies.
    (b) Functions.--The Under Secretary for Science and 
Technology shall work in conjunction with the Technical Support 
Working Group (organized under the April, 1982, National 
Security Decision Directive Numbered 30) to--
          (1) screen proposals described in subsection (a), as 
        appropriate;
          (2) assess the feasibility, scientific and technical 
        merits, and estimated cost of proposals screened under 
        paragraph (1), as appropriate;
          (3) identify areas where existing technologies may be 
        easily adapted and deployed to meet the homeland 
        security agenda of the Federal Government; and
          (4) develop and oversee the implementation of 
        homeland security technology demonstration events, held 
        at least annually, for the purpose of improving contact 
        among technology developers, vendors, and acquisition 
        personnel.
    Amend the table of contents accordingly.
                              ----------                              


7. An Amendment To Be Offered by Representative Woolsey of California, 
               or Her Designee, Debatable for 10 Minutes

  At the end of title III, insert the following new section:

SEC. 309. HOMELAND SECURITY INSTITUTE.

  (a) Establishment.--The Secretary shall establish a federally 
funded research and development center to be known as the 
``Homeland Security Institute'' (in this section referred to as 
the ``Institute'').
  (b) Administration.--The Institute shall be administered as a 
separate entity by the Secretary.
  (c) Duties.--The duties of the Institute shall be determined 
by the Secretary, and may include the following:
          (1) Systems analysis, risk analysis, and simulation 
        and modeling to determine the vulnerabilities of the 
        Nation's critical infrastructures and the effectiveness 
        of the systems deployed to reduce those 
        vulnerabiblities.
          (2) Economic and policy analysis to assess the 
        distributed costs and benefits of alternative 
        approaches to enhancing security.
          (3) Evaluation of the effectiveness of measures 
        deployed to enhance the security of institutions, 
        facilities, and infrastructure that may be terrorist 
        targets.
          (4) Identification of instances when common standards 
        and protocols could improve the interoperability and 
        effective utilization of tools developed for field 
        operators and first responders.
          (5) Assistance for Federal agencies and departments 
        in establishing testbeds to evaluate the effectiveness 
        of technologies under development and to assess the 
        appropriateness of such technologies for deployment.
          (6) Design of metrics and use of those metrics to 
        evaluate the effectiveness of homeland security 
        programs throughout the Federal Government, including 
        all national laboratories.
          (7) Design of and support for the conduct of homeland 
        security-related exercises and simulations.
          (8) Creation of strategic technology development 
        plans to reduce vulnerabilities in the Nation's 
        critical infrastructure and key resources.
  (d) Consultation on Institute Activities.--In carrying out 
the duties described in subsection (c), the Institute shall 
consult widely with representatives from private industry, 
institutions of higher education, and nonprofit institutions.
  (e) Annual Reports.--The Institute shall transmit to the 
Secretary and the Congress an annual report on the activities 
of the Institute under this section.
  Amend the table of contents accordingly.
                              ----------                              


8. An Amendment To Be Offered by Representative Cardin of Maryland, or 
                 His Designee, Debatable for 10 Minutes

    In section 401(1), add the following at the end: ``The 
functions, personnel, assets, and obligations of the Customs 
Service so transferred shall be maintained as a distinct entity 
within the Department.''.
                              ----------                              


 9. An Amendment To Be Offered by Representative Hunter of California, 
               or His Designee, Debatable for 10 Minutes

    At the end of chapter 1 of subtitle B of title IV, add the 
following:

SEC. 416. SENSE OF CONGRESS REGARDING CONSTRUCTION OF FENCING NEAR SAN 
                    DIEGO, CALIFORNIA.

    It is the sense of the Congress that completing the 14-mile 
border fence project required to be carried out under section 
102(b) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1103 note) should be a 
priority for the Secretary.
                              ----------                              


10. An Amendment To Be Offered by Representative Ose of California, or 
                 His Designee, Debatable for 10 Minutes

    At the end of title VI add the following:

SEC.  . CONSOLIDATION AND CO-LOCATION OF OFFICES.

    Not later than 1 year after the date of the enactment of 
this Act, the Secretary shall develop and submit to the 
Congress a plan for consolidating and co-locating--
          (1) any regional offices or field offices of agencies 
        that are transferred to the Department under this Act, 
        if such officers are located in the same municipality; 
        and
          (2) portions of regional and field offices of other 
        Federal agencies, to the extent such offices perform 
        functions that are transferred to the Secretary under 
        this Act.
                              ----------                              


11. An Amendment To Be Offered by Representative Velazquez of New York, 
               or Her Designee, Debatable for 10 Minutes

  In section 734 of the bill, insert before the first sentence 
the following:
  (a) Office of Small and Disadvantaged Business Utilization.--
  At the end of section 734 of the bill, add the following new 
subsection:
  (b) Small Business Procurement Goals.--
          (1) In general.--The Secretary shall annually 
        establish goals for the participation by small business 
        concerns, by small business concerns owned and 
        controlled by service-disabled veterans, by qualified 
        HUBZone small business concerns, by small business 
        concerns owned and controlled by socially and 
        economically disadvantaged individuals, and by small 
        business concerns owned and controlled by women (as 
        such terms are defined pursuant to the Small Business 
        Act (15 U.S.C. 631 et seq.) and relevant regulations 
        promulgated thereunder) in procurement contracts of the 
        Department.
          (2) Department goals not less than government-wide 
        goals.--Notwithstanding section 15(g) of the Small 
        Business Act (15 U.S.C. 644(g)), each goal established 
        under paragraph (1) shall be equal to or greater than 
        the corresponding Government-wide goal established by 
        the President under section 15(g)(1) of the Small 
        Business Act (15 U.S.C. 644(g)(1)).
          (3) Incentive for goal achievement.--Achievement of 
        the goals established under paragraph (1) shall be an 
        element in the performance standards for employees of 
        the Department who have the authority and 
        responsibility for achieving such goals.
                              ----------                              


 12. An Amendment To Be Offered by Representative Hastings of Florida, 
               or His Designee, Debatable for 10 Minutes

    At the end of title VII, insert the following new section:

SEC. 7. REQUIREMENT TO COMPLY WITH LAWS PROTECTING EQUAL EMPLOYMENT 
                    OPPORTUNITY AND PROVIDING WHISTLEBLOWER 
                    PROTECTIONS.

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


 13. An Amendment To Be Offered by Representative Kingston of Georgia, 
               or His Designee, Debatable for 10 Minutes

    Add at the end of subtitle G of title VII the following:

SEC.  . FEDERAL LAW ENFORCEMENT TRAINING CENTER.

    (a) In General.--The transfer of an authority or an agency 
under this Act to the Department of Homeland Security does not 
affect training agreements already entered into with the 
Federal Law Enforcement Training Center with respect to the 
training of personnel to carry out that authority or the duties 
of that transferred agency.
    (b) Continuity of Operations.--All activities of the 
Federal Law Enforcement Training Center transferred to the 
Department of Justice under this Act shall continue to be 
carried out at the locations such activities were carried out 
before such transfer.
                              ----------                              


14. An Amendment To Be Offered by Representative Rogers of Kentucky, or 
                 His Designee, Debatable for 10 Minutes

    At the appropriate place in the bill, add the following new 
section:

SEC.  . JOINT INTERAGENCY TASK FORCE.

    (a) Establishment.--The Secretary may establish and operate 
a permanent Joint Interagency Homeland Security Task Force 
composed of representatives from military and civilian agencies 
of the United States Government for the purposes of 
anticipating terrorist threats against the United States and 
taking appropriate actions to prevent harm to the United 
States.
    (b) Structure.--It is the sense of Congress that the 
Secretary should model the Joint Interagency Homeland Security 
Task Force on the approach taken by the Joint Interagency Task 
Forces for drug interdiction at Key West, Florida and Alameda, 
California, to the maximum extent feasible and appropriate.
                              ----------                              


 15. An Amendment To Be Offered by Representative Rush of Illinois, or 
                 His Designee, Debatable for 10 Minutes

    At the end of subtitle G of title VII add the following:

SEC. 7  . OFFICE FOR STATE AND LOCAL GOVERNMENT COORDINATION.

    (a) Establishment.--There is established within the Office 
of the Secretary the Office for State and Local Government 
Coordination, to oversee and coordinate departmental programs 
for and relationships with State and local governments.
    (b) Responsibilities.--The Office established under 
subsection (a) shall--
          (1) coordinate the activities of the Department 
        relating to state and local government;
          (2) assess, and advocate for, the resources needed by 
        State and local government to implement the national 
        strategy for combating terrorism;
          (3) provide State and local government with regular 
        information, research, and technical support to assist 
        local efforts at securing the homeland; and
          (4) develop a process for receiving meaningful input 
        from State and local government to assist the 
        development of the national strategy for combating 
        terrorism and other homeland security activities.
                              ----------                              


16. An Amendment To Be Offered by Representative Shays of Connecticut, 
               or His Designee, Debatable for 10 Minutes

    At the end of subtitle G of title VII insert the following:

SEC. 7  . REPORTING REQUIREMENTS.

    (a) Biennial Reports.--Every 2 years the Secretary shall 
submit to Congress--
          (1) a report assessing the resources and requirements 
        of executive agencies relating to border security and 
        emergency preparedness issues;
          (2) a report certifying the preparedness of the 
        United States to prevent, protect against, and respond 
        to natural disasters, cyber attacks, and incidents 
        involving weapons of mass destruction; and
          (3) a report assessing the emergency preparedness of 
        each State, including an assessment of each State's 
        coordination with the Department with respect to the 
        responsibilities specified in section 501.
    (b) Additional Report.--Not later than 1 year after the 
effective date of this Act, the Secretary shall submit to 
Congress a report--
          (1) assessing the progress of the Department in--
                  (A) implementing this Act; and
                  (B) ensuring the core functions of each 
                entity transferred to the Department are 
                maintained and strengthened; and
          (2) recommending any conforming changes in law 
        necessary as a result of the enactment and 
        implementation of this Act.
                              ----------                              


17. An Amendment To Be Offered by Representative Shays of Connecticut, 
               or His Designee, Debatable for 20 Minutes

  Page 189, after line 7, insert the following (and redesignate 
succeeding sections and references thereto accordingly):

SEC. 762. LABOR-MANAGEMENT RELATIONS.

  (a) Limitation on Exclusionary Authority.--
          (1) In general.--No agency or subdivision of an 
        agency which is transferred to the Department pursuant 
        to this Act shall be excluded from the coverage of 
        chapter 71 of title 5, United States Code, as a result 
        of any order issued under section 7103(b)(1) of such 
        title 5 after June 18, 2002, unless--
                  (A) the mission and responsibilities of the 
                agency (or subdivision) materially change; and
                  (B) a majority of the employees within such 
                agency (or subdivision) have as their primary 
                duty intelligence, counterintelligence, or 
                investigative work directly related to 
                terrorism investigation.
          (2) Exclusions allowable.--Nothing in paragraph (1) 
        shall affect the effectiveness of any order to the 
        extent that such order excludes any portion of an 
        agency or subdivision of an agency as to which--
                  (A) recognition as an appropriate unit has 
                never been conferred for purposes of chapter 71 
                of such title 5; or
                  (B) any such recognition has been revoked or 
                otherwise terminated as a result of a 
                determination under subsection (b)(1).
  (b) Provisions Relating to Bargaining Units.--
          (1) Limitation relating to appropriate units.--Each 
        unit which is recognized as an appropriate unit for 
        purposes of chapter 71 of title 5, United States Code, 
        as of the day before the effective date of this Act 
        (and any subdivision of any such unit) shall, if such 
        unit (or subdivision) is transferred to the Department 
        pursuant to this Act, continue to be so recognized for 
        such purposes, unless--
                  (A) the mission and responsibilities of such 
                unit (or subdivision) materially change; and
                  (B) a majority of the employees within such 
                unit (or subdivision) have as their primary 
                duty intelligence, counterintelligence, or 
                investigative work directly related to 
                terrorism investigation.
          (2) Limitation relating to positions or employees.--
        No position or employee within a unit (or subdivision 
        of a unit) as to which continued recognition is given 
        in accordance with paragraph (1) shall be excluded from 
        such unit (or subdivision), for purposes of chapter 71 
        of such title 5, unless the primary job duty of such 
        position or employee--
                  (A) materially changes; and
                  (B) consists of intelligence, 
                counterintelligence, or investigative work 
                directly related to terrorism investigation.
        In the case of any positions within a unit (or 
        subdivision) which are first established on or after 
        the effective date of this Act and any employees first 
        appointed on or after such date, the preceding sentence 
        shall be applied disregarding subparagraph (A).
  (c) Homeland Security.--Subsections (a), (b), and (d) of this 
section shall not apply in circumstances where the President 
determines in writing that such application would have a 
substantial adverse impact on the Department's ability to 
protect homeland security.
  (d) Coordination Rule.--No other provision of this Act or of 
any amendment made by this Act may be construed or applied in a 
manner so as to limit, supersede, or otherwise affect the 
provisions of this section, except to the extent that it does 
so by specific reference to this section.
                              ----------                              


 18. An Amendment To Be Offered by Representative Morella of Maryland, 
               or Her Designee, Debatable for 20 Minutes

  In subtitle G of title VII of the bill, insert after section 
761 the following (and redesignate succeeding sections and 
references thereto accordingly):

SEC. 762. LABOR-MANAGEMENT RELATIONS.

  (a) Limitation on Exclusionary Authority.--
          (1) In general.--No agency or subdivision of an 
        agency which is transferred to the Department pursuant 
        to this Act shall be excluded from the coverage of 
        chapter 71 of title 5, United States Code, as a result 
        of any order issued under section 7103(b)(1) of such 
        title 5 after June 18, 2002, unless--
                  (A) the mission and responsibilities of the 
                agency (or subdivision) materially change; and
                  (B) a majority of the employees within such 
                agency (or subdivision) have as their primary 
                duty intelligence, counterintelligence, or 
                investigative work directly related to 
                terrorism investigation.
          (2) Exclusions allowable.--Nothing in paragraph (1) 
        shall affect the effectiveness of any order to the 
        extent that such order excludes any portion of an 
        agency or subdivision of an agency as to which--
                  (A) recognition as an appropriate unit has 
                never been conferred for purposes of chapter 71 
                of such title 5; or
                  (B) any such recognition has been revoked or 
                otherwise terminated as a result of a 
                determination under subsection (b)(1).
  (b) Provisions Relating to Bargaining Units.--
          (1) Limitation relating to appropriate units.--Each 
        unit which is recognized as an appropriate unit for 
        purposes of chapter 71 of title 5, United States Code, 
        as of the day before the effective date of this Act 
        (and any subdivision of any such unit) shall, if such 
        unit (or subdivision) is transferred to the Department 
        pursuant to this Act, continue to be so recognized for 
        such purposes, unless--
                  (A) the mission and responsibilities of such 
                unit (or subdivision) materially change; and
                  (B) a majority of the employees within such 
                unit (or subdivision) have as their primary 
                duty intelligence, counterintelligence, or 
                investigative work directly related to 
                terrorism investigation.
          (2) Limitation relating to positions or employees.--
        No position or employee within a unit (or subdivision 
        of a unit) as to which continued recognition is given 
        in accordance with paragraph (1) shall be excluded from 
        such unit (or subdivision), for purposes of chapter 71 
        of such title 5, unless the primary job duty of such 
        position or employee-
                  (A) materially changes; and
                  (B) consists of intelligence, 
                counterintelligence, or investigative work 
                directly related to terrorism investigation.
        In the case of any positions within a unit (or 
        subdivision) which are first established on or after 
        the effective date of this Act and any employees first 
        appointed on or after such date, the preceding sentence 
        shall be applied disregarding subparagraph (A).
  (c) Coordination Rule.--No other provision of this Act or of 
any amendment made by this Act may be construed or applied in a 
manner so as to limit, supersede, or otherwise affect the 
provisions of this section, except to the extent that it does 
so by specific reference to this section.
                              ----------                              


19. An Amendment To Be Offered by Representative Quinn of New York, or 
                 His Designee, Debatable for 20 Minutes

  In section 761(a) of the bill, redesignate paragraphs (1) and 
(2) as paragraphs (2) and (3), respectively, and insert after 
the heading for subsection (a) the following:
          (1) Sense of congress.--It is the sense of the 
        Congress that--
                  (A) it is extremely important that employees 
                of the Department be allowed to participate in 
                a meaningful way in the creation of any human 
                resources management system affecting them;
                  (B) such employees have the most direct 
                knowledge of the demands of their jobs and have 
                a direct interest in ensuring that their human 
                resources management system is conducive to 
                achieving optimal operational efficiencies;
                  (C) the 21st century human resources 
                management system envisioned for the Department 
                should be one that benefits from the input of 
                its employees; and
                  (D) this collaborative effort will help 
                secure our homeland.
  In paragraph (4) of section 9701(b) of title 5, United States 
Code (as proposed to be added by section 761(a) of the bill), 
strike all that follows ``by law'' and insert ``; and''.
  In section 9701 of title 5, United States Code (as proposed 
to be added by section 761(a) of the bill), redesignate 
subsection (e) as subsection (g) and insert after subsection 
(d) the following:
  ``(e) Provisions To Ensure Collaboration With Employee 
Representatives.--
          ``(1) In general.--In order to ensure that the 
        authority of this section is exercised in collaboration 
        with, and in a manner that ensures the direct 
        participation of employee representatives in the 
        planning, development, and implementation of any human 
        resources management system or adjustments under this 
        section, the Secretary of Homeland Security and the 
        Director of the Office of Personnel Management shall 
        provide for the following:
                  ``(A) Notice of proposal, etc.--The Secretary 
                and the Director shall, with respect to any 
                proposed system or adjustment--
                          ``(i) provide to each employee 
                        representative representing any 
                        employees who might be affected, a 
                        written description of the proposed 
                        system or adjustment (including the 
                        reasons why it is considered 
                        necessary);
                          ``(ii) give each representative at 
                        least 60 days (unless extraordinary 
                        circumstances require earlier action) 
                        to review and make recommendations with 
                        respect to the proposal; and
                          ``(iii) give any recommendations 
                        received from any such representative 
                        under clause (ii) full and fair 
                        consideration in deciding whether or 
                        how to proceed with the proposal.
                  ``(B) Pre-implementation requirements.--If 
                the Secretary and the Director decide to 
                implement a proposal described in subparagraph 
                (A), they shall before implementation--
                          ``(i) give each employee 
                        representative details of the decision 
                        to implement the proposal, together 
                        with the information upon which the 
                        decision was based;
                          ``(ii) give each representative an 
                        opportunity to make recommendations 
                        with respect to the proposal; and
                          ``(iii) give such recommendations 
                        full and fair consideration, including 
                        the providing of reasons to an employee 
                        representative if any of its 
                        recommendations are rejected.
                  ``(C) Continuing collaboration.--If a 
                proposal described in subparagraph (A) is 
                implemented, the Secretary and the Director 
                shall--
                          ``(i) develop a method for each 
                        employee representative to participate 
                        in any further planning or development 
                        which might become necessary; and
                          ``(ii) give each employee 
                        representative adequate access to 
                        information to make that participation 
                        productive.
          ``(2) Procedures.--Any procedures necessary to carry 
        out this subsection shall be established by the 
        Secretary and the Director jointly. Such procedures 
        shall include measures to ensure--
                  ``(A) in the case of employees within a unit 
                with respect to which a labor organization is 
                accorded exclusive recognition, representation 
                by individuals designated or from among 
                individuals nominated by such organization;
                  ``(B) in the case of any employees who are 
                not within such a unit, representation by any 
                appropriate organization which represents a 
                substantial percentage of those employees or, 
                if none, in such other manner as may be 
                appropriate, consistent with the purposes of 
                this subsection; and
                  ``(C) the selection of representatives in a 
                manner consistent with the relative numbers of 
                employees represented by the organizations or 
                other representatives involved.
  ``(f) Provisions Relating to Appellate Procedures.--
          ``(1) Sense of congress.--It is the sense of the 
        Congress that--
                  ``(A) employees of the Department of Homeland 
                Security are entitled to fair treatment in any 
                appeals that they bring in decisions relating 
                to their employment; and
                  ``(B) in prescribing regulations for any such 
                appeals procedures, the Secretary of Homeland 
                Security and the Director of the Office of 
                Personnel Management--
                          ``(i) should ensure that employees of 
                        the Department are afforded the 
                        protections of due process; and
                          ``(ii) toward that end, should be 
                        required to consult with the Merit 
                        Systems Protection Board before issuing 
                        any such regulations.
          ``(2) Requirements.--Any regulations under this 
        section which relate to any matters within the purview 
        of chapter 77--
                  ``(A) shall be issued only after consultation 
                with the Merit Systems Protection Board; and
                  ``(B) shall ensure the availability of 
                procedures which shall--
                          ``(i) be consistent with requirements 
                        of due process; and
                          ``(ii) provide, to the maximum extent 
                        practicable, for the expeditious 
                        handling of any matters involving the 
                        Department of Homeland Security.
                              ----------                              


20. An Amendment To Be Offered by Representative Waxman of California, 
               or His Designee, Debatable for 20 Minutes

  Strike section 761 and insert the following:

SEC. 761. HUMAN RESOURCES MANAGEMENT.

  (a) Authority To Adjust Pay Schedules.--
          (1) In general.--Notwithstanding any provision of 
        title 5, United States Code, the Secretary may, under 
        regulations prescribed jointly with the Director of the 
        Office of Personnel Management, provide for such 
        adjustments in rates of basic pay as may be necessary 
        to address inequitable pay disparities among employees 
        within the Department performing similar work in 
        similar circumstances.
          (2) Applicability.--No authority under paragraph (1) 
        may be exercised with respect to any employee who 
        serves in--
                  (A) an Executive Schedule position under 
                subchapter II of chapter 53 of title 5, United 
                States Code; or
                  (B) a position for which the rate of basic 
                pay is fixed in statute by reference to a 
                section or level under subchapter II of chapter 
                53 of such title 5.
          (3) Limitations.--Nothing in this subsection shall 
        constitute authority--
                  (A) to fix pay at a rate greater than the 
                maximum amount of cash compensation allowable 
                under section 5307 of title 5, United States 
                Code, in a year; or
                  (B) to exempt any employee from the 
                application of such section 5307.
          (4) Sunset provision.--Effective 5 years after the 
        effective date of this Act, all authority to issue 
        regulations under this subsection (including 
        regulations which would modify, supersede, or terminate 
        any regulations previously issued under this 
        subsection) shall cease to be available.
  (b) Suspension and Removal of Employees in the Interests of 
National Security.--The Secretary shall establish procedures 
consistent with section 7532 of title 5, United States Code, to 
provide for the suspension and removal of employees of the 
Department when necessary in the interests of national security 
or homeland security. Such regulations shall provide for 
written notice, hearings, and review similar to that provided 
by such section 7532.
  (c) Demonstration Project.--
          (1) In general.--Not later than 5 years after the 
        effective date of this Act, the Secretary shall submit 
        to Congress a proposal for a demonstration project, the 
        purpose of which shall be to help attain a human 
        resources management system which in the judgment of 
        the Secretary is necessary in order to enable the 
        Department best to carry out its mission.
          (2) Requirements.--The proposal shall--
                  (A) ensure that veterans' preference and 
                whistleblower protection rights are retained;
                  (B) ensure that existing collective 
                bargaining agreements and rights under chapter 
                71 of title 5, United States Code, remain 
                unaffected;
                  (C) ensure the availability of such measures 
                as may be necessary in order to allow the 
                Department to recruit and retain the best 
                persons possible to carry out its mission;
                  (D) include one or more performance appraisal 
                systems which shall--
                          (i) provide for periodic appraisals 
                        of the performance of covered 
                        employees;
                          (ii) provide for meaningful 
                        participation of covered employees in 
                        the establishment of employee 
                        performance plans; and
                          (iii) use the results of performance 
                        appraisals as a basis for rewarding, 
                        reducing in grade, retaining, and 
                        removing covered employees; and
                  (E) contain recommendations for such 
                legislation or other actions by Congress as the 
                Secretary considers necessary.
          (3) Definition of a covered employee.--For purposes 
        of paragraph (2)(D), the term ``covered employee'' 
        means a supervisor or management official (as defined 
        in paragraphs (10) and (11) of section 7103(a) of title 
        5, United States Code, respectively) who occupies a 
        position within the Department which is in the General 
        Schedule.
  (d) Merit System Principles.--All authorities under 
subsections (a) and (b) shall be exercised in a manner, and all 
personnel management flexibilities or authorities proposed 
under subsection (c) shall be, consistent with merit system 
principles under section 2301 of title 5, United States Code.
  (e) Remedies for Retaliation Against Whistleblowers.--
  Section 7211 of title 5, United States Code, is amended--
          (1) by inserting ``(a)'' before ``The right''; and
          (2) by adding at the end the following:
  ``(b) Any employee aggrieved by a violation of subsection (a) 
may bring a civil action in the appropriate United States 
district court, within 3 years after the date on which such 
violation occurs, against any agency, organization, or other 
person responsible for the violation, for lost wages and 
benefits, reinstatement, costs and attorney fees, compensatory 
damages, and equitable, injunctive, or any other relief that 
the court considers appropriate. Any such action shall, upon 
request of the party bringing the action, be tried by the court 
with a jury.
  ``(c) The same legal burdens of proof in proceedings under 
subsection (b) shall apply as under sections 1214(b)(4)(B) and 
1221(e) in the case of an alleged prohibited personnel practice 
described in section 2302(b)(8).
  ``(d) For purposes of this section, the term `employee' means 
an employee (as defined by section 2105) and any individual 
performing services under a personal services contract with the 
Government (including as an employee of an organization).''.
  (f) Nonreduction in Pay.--Nothing in this section shall, with 
respect to any employee who is transferred to the Department 
pursuant to this Act, constitute authority to reduce the rate 
of basic pay (including any comparability pay) payable to such 
employee below the rate last payable to such employee before 
the date on which such employee is so transferred.
  In section 812(e)(1), strike ``Act; and'' and insert the 
following: ``Act, except that the rules, procedures, terms, and 
conditions relating to employment in the Transportation 
Security Administration before the effective date of this Act 
may be applied only to the personnel employed by or carrying 
out the functions of the Transportation Security 
Administration.''.
  In section 812(e)(2), strike ``except'' and insert 
``Except''.
                              ----------                              


21. An Amendment To Be Offered by Representative Armey of Texas, or His 
                   Designee, Debatable for 40 Minutes

  Page 13, line 20, strike ``The Secretary'' and insert ``With 
respect to homeland security, the Secretary''.
  Page 22, line 13, strike ``Under the direction of the 
Secretary, developing'' and insert ``Developing''.
  Page 24, lines 10 to 11, strike ``and to other areas of 
responsibility described in section 101(b)''.
  Page 25, lines 9 to 10, strike ``and to other areas of 
responsibility described in section 101(b)''.
  Page 24, line 12, strike ``concerning infrastructure or other 
vulnerabilities'' and insert ``concerning infrastructure 
vulnerabilities or other vulnerabilities''.
  Page 25, lines 11 to 12, strike ``concerning infrastructure 
or other vulnerabilities'' and insert ``concerning 
infrastructure vulnerabilities or other vulnerabilities''.
  Page 28, line 14, strike ``(1) and (2)'' and insert ``(2) and 
(3)''.
  Page 19, line 16, strike ``Director of Homeland Security'' 
and insert ``President''.
  Page 43, line 11, strike ``the Congress'' and insert ``the 
appropriate congressional committees''.
  Page 142, line 2, insert ``including'' before 
``interventions''.
  Page 142, line 4, insert a comma after ``asters''.
  In section 811(f)(1)--
          (1) insert ``or'' before ``Harbor''; and
          (2) strike ``or Oil Spill Liability Trust Fund''.
  In section 205(1), strike ``information'' the first place it 
appears.
  In section 205(3) insert ``and regulatory'' after 
``legislative''.
  In section 302, strike paragraph (1) and redesignate the 
subsequent paragraphs in order as paragraphs (1) and (2).
  In section 305(d), strike ``section 302(2)(D)'' and insert 
``302(1)(D)''.
  Strike section 906, and redesignate sections 907 through 913 
as sections 906 through 912, respectively.
  In section 301--
          (1) in paragraph (8), strike ``homeland security, 
        including'' and all that follows and insert ``homeland 
        security; and'';
          (2) strike paragraph (9); and
          (3) redesignate paragraph (10) as paragraph (9).
  In title III, add at the end the following section:

SEC. 309. TECHNOLOGY CLEARINGHOUSE TO ENCOURAGE AND SUPPORT INNOVATIVE 
                    SOLUTIONS TO ENHANCE HOMELAND SECURITY.

  (a) Establishment of Program.--The Secretary, acting through 
the Under Secretary for Science and Technology, shall establish 
and promote a program to encourage technological innovation in 
facilitating the mission of the Department (as described in 
section 101).
  (b) Elements of Program.--The program described in subsection 
(a) shall include the following components:
          (1) The establishment of a centralized Federal 
        clearinghouse for information relating to technologies 
        that would further the mission of the Department for 
        dissemination, as appropriate, to Federal, State, and 
        local government and private sector entities for 
        additional review, purchase, or use.
          (2) The issuance of announcements seeking unique and 
        innovative technologies to advance the mission of the 
        Department.
          (3) The establishment of a technical assistance team 
        to assist in screening, as appropriate, proposals 
        submitted to the Secretary (except as provided in 
        subsection (c)(2)) to assess the feasibility, 
        scientific and technical merits, and estimated cost of 
        such proposals, as appropriate.
          (4) The provision of guidance, recommendations, and 
        technical assistance, as appropriate, to assist 
        Federal, State, and local government and private sector 
        efforts to evaluate and implement the use of 
        technologies described in paragraph (1) or (2).
          (5) The provision of information for persons seeking 
        guidance on how to pursue proposals to develop or 
        deploy technologies that would enhance homeland 
        security, including information relating to Federal 
        funding, regulation, or acquisition.
  (c) Miscellaneous Provisions.--
          (1) In general.--Nothing in this section shall be 
        construed as authorizing the Secretary or the technical 
        assistance team established under subsection (b)(3) to 
        set standards for technology to be used by the 
        Department, any other executive agency, any State or 
        local government entity, or any private sector entity.
          (2) Certain proposals.--The technical assistance team 
        established under subsection (b)(3) shall not consider 
        or evaluate proposals submitted in response to a 
        solicitation for offers for a pending procurement or 
        for a specific agency requirement.
          (3) Coordination.--In carrying out this section, the 
        Secretary shall coordinate with the Technical Support 
        Working Group (organized under the April 1982 National 
        Security Decision Directive Numbered 30).
  In title II, at the end of subtitle A add the following:

SEC.    . ENHANCEMENT OF NON-FEDERAL CYBERSECURITY.

  In carrying out the responsibilities under section 201, the 
Under Secretary for Information Analysis and Infrastructure 
Protection shall--
          (1) as appropriate, provide to State and local 
        government entities, and upon request to private 
        entitites that own or operate critical information 
        systems--
                  (A) analysis and warnings related to threats 
                to, and vulnerabilities of, critical 
                information systems; and
                  (B) in coordination with the Under Secretary 
                for Emergency Preparedness and Response, crisis 
                management support in response to threats to, 
                or attacks on, critical information systems; 
                and
          (2) as appropriate, provide technical assistance, 
        upon request, to the private sector and other 
        government entities, in coordination with the Under 
        Secretary for Emergency Preparedness and Response, with 
        respect to emergency recovery plans to respond to major 
        failures of critical information systems.
  At the end of title II add the following:

SEC.    . NET GUARD.

  The Under Secretary for Information Analysis and 
Infrastructure Protection may establish a national technology 
guard, to be known as ``NET Guard'', comprised of local teams 
of volunteers with expertise in relevant areas of science and 
technology, to assist local communities to respond and recover 
from attacks on information systems and communications 
networks.
  Strike section 814.
  In section 761--
          (1) in the proposed section 9701(b)(3)(D) strike 
        ``title'' and insert ``part''; and
          (2) in the proposed section 9701(c), strike ``title'' 
        and insert ``part''.
  At the end of title VII, insert the following new section:

SEC. 774. SENSE OF CONGRESS REAFFIRMING THE CONTINUED IMPORTANCE AND 
                    APPLICABILITY OF THE POSSE COMITATUS ACT.

  (a) Findings.--The Congress finds the following:
          (1) Section 1385 of title 18, United States Code 
        (commonly known as the ``Posse Comitatus Act''), 
        prohibits the use of the Armed Forces as a posse 
        comitatus to execute the laws except in cases and under 
        circumstances expressly authorized by the Constitution 
        or Act of Congress.
          (2) Enacted in 1878, the Posse Comitatus Act was 
        expressly intended to prevent United States Marshals, 
        on their own initiative, from calling on the Army for 
        assistance in enforcing Federal law.
          (3) The Posse Comitatus Act has served the Nation 
        well in limiting the use of the Armed Forces to enforce 
        the law.
          (4) Nevertheless, by its express terms, the Posse 
        Comitatus Act is not a complete barrier to the use of 
        the Armed Forces for a range of domestic purposes, 
        including law enforcement functions, when the use of 
        the Armed Forces is authorized by Act of Congress or 
        the President determines that the use of the Armed 
        Forces is required to fulfill the President's 
        obligations under the Constitution to respond promptly 
        in time of war, insurrection, or other serious 
        emergency.
          (5) Existing laws, including chapter 15 of title 10, 
        United States Code (commonly known as the 
        ``Insurrection Act''), and the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5121 et seq.), grant the President broad powers that 
        may be invoked in the event of domestic emergencies, 
        including an attack against the Nation using weapons of 
        mass destruction, and these laws specifically authorize 
        the President to use the Armed Forces to help restore 
        public order.
  (b) Sense of Congress.--The Congress reaffirms the continued 
importance of section 1385 of title 18, United States Code, and 
it is the sense of the Congress that nothing in this Act should 
be construed to alter the applicability of such section to any 
use of the Armed Forces as a posse comitatus to execute the 
laws.
  Amend the heading for section 766 to read as follows:

SEC. 766. REGULATORY AUTHORITY AND PREEMPTION.

  In section 766--
          (1) before the first sentence insert the following: 
        ``(a) ``Regulatory Authority.--''; and
          (2) at the end of the section add the following:
  (b) Preemption of State or Local Law.--Except as otherwise 
provided in this Act, this Act preempts no State or local law, 
except that any authority to preempt State or local law vested 
in any Federal agency or official transferred to the Department 
pursuant to this Act shall be transferred to the Department 
effective on the date of the transfer to the Department of that 
Federal agency or official.
  Page 31, after line 5, insert the following:

SEC. 207. INFORMATION SECURITY.

  In carrying out the responsibilities under section 201, the 
Under Secretary for Information Analysis and Infrastructure 
Protection shall--
          (1) as appropriate, provide to State and local 
        government entities, and, upon request, to private 
        entities that own or operate critical information 
        systems--
                  (A) analysis and warnings related to threats 
                to, and vulnerabilities of, critical 
                information systems; and
                  (B) in coordination with the Under Secretary 
                for Emergency Preparedness and Response, crisis 
                management support in response to threats to, 
                or attacks on, critical information systems; 
                and
          (2) as appropriate, provide technical assistance, 
        upon request, to the private sector and with other 
        government entities, in coordination with the Under 
        Secretary for Emergency Preparedness and Response, with 
        respect to emergency recovery plans to respond to major 
        failures of critical information systems.
  At the end of the bill add the following new title:

                     TITLE XI--INFORMATION SECURITY

SEC. 1101. INFORMATION SECURITY.

  (a) Short Title.--The amendments made by this title may be 
cited as the ``Federal Information Security Management Act of 
2002''.
  (b) Information Security.--
          (1) In general.--Subchapter II of chapter 35 of title 
        44, United States Code, is amended to read as follows:

                 ``SUBCHAPTER II--INFORMATION SECURITY


``Sec. 3531. Purposes

  ``The purposes of this subchapter are to--
          ``(1) provide a comprehensive framework for ensuring 
        the effectiveness of information security controls over 
        information resources that support Federal operations 
        and assets;
          ``(2) recognize the highly networked nature of the 
        current Federal computing environment and provide 
        effective governmentwide management and oversight of 
        the related information security risks, including 
        coordination of information security efforts throughout 
        the civilian, national security, and law enforcement 
        communities;
          ``(3) provide for development and maintenance of 
        minimum controls required to protect Federal 
        information and information systems;
          ``(4) provide a mechanism for improved oversight of 
        Federal agency information security programs;
          ``(5) acknowledge that commercially developed 
        information security products offer advanced, dynamic, 
        robust, and effective information security solutions, 
        reflecting market solutions for the protection of 
        critical information infrastructures important to the 
        national defense and economic security of the nation 
        that are designed, built, and operated by the private 
        sector; and
          ``(6) recognize that the selection of specific 
        technical hardware and software information security 
        solutions should be left to individual agencies from 
        among commercially developed products.''.

``Sec. 3532. Definitions

  ``(a) In General.--Except as provided under subsection (b), 
the definitions under section 3502 shall apply to this 
subchapter.
  ``(b) Additional Definitions.--As used in this subchapter--
          ``(1) the term `information security' means 
        protecting information and information systems from 
        unauthorized access, use, disclosure, disruption, 
        modification, or destruction in order to provide--
                  ``(A) integrity, which means guarding against 
                improper information modification or 
                destruction, and includes ensuring information 
                nonrepudiation and authenticity;
                  ``(B) confidentiality, which means preserving 
                authorized restrictions on access and 
                disclosure, including means for protecting 
                personal privacy and proprietary information;
                  ``(C) availability, which means ensuring 
                timely and reliable access to and use of 
                information; and
                  ``(D) authentication, which means utilizing 
                digital credentials to assure the identity of 
                users and validate their access;
          ``(2) the term `national security system' means any 
        information system (including any telecommunications 
        system) used or operated by an agency or by a 
        contractor of an agency, or other organization on 
        behalf of an agency, the function, operation, or use of 
        which--
                  ``(A) involves intelligence activities;
                  ``(B) involves cryptologic activities related 
                to national security;
                  ``(C) involves command and control of 
                military forces;
                  ``(D) involves equipment that is an integral 
                part of a weapon or weapons system; or
                  ``(E) is critical to the direct fulfillment 
                of military or intelligence missions provided 
                that this definition does not apply to a system 
                that is used for routine administrative and 
                business applications (including payroll, 
                finance, logistics, and personnel management 
                applications);
          ``(3) the term `information technology' has the 
        meaning given that term in section 5002 of the Clinger-
        Cohen Act of 1996 (40 U.S.C. 1401); and
          ``(4) the term `information system' means any 
        equipment or interconnected system or subsystems of 
        equipment that is used in the automatic acquisition, 
        storage, manipulation, management, movement, control, 
        display, switching, interchange, transmission, or 
        reception of data or information, and includes--
                  ``(A) computers and computer networks;
                  ``(B) ancillary equipment;
                  ``(C) software, firmware, and related 
                procedures;
                  ``(D) services, including support services; 
                and
                  ``(E) related resources.''.

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

  ``(a) The Director shall oversee agency information security 
policies and practices, by--
          ``(1) promulgating information security standards 
        under section 5131 of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1441);
          ``(2) overseeing the implementation of policies, 
        principles, standards, and guidelines on information 
        security;
          ``(3) requiring agencies, consistent with the 
        standards promulgated under such section 5131 and the 
        requirements of this subchapter, to identify and 
        provide information security protections commensurate 
        with the risk and magnitude of the harm resulting from 
        the unauthorized access, use, disclosure, disruption, 
        modification, or destruction of--
                  ``(A) information collected or maintained by 
                or on behalf of an agency; or
                  ``(B) information systems used or operated by 
                an agency or by a contractor of an agency or 
                other organization on behalf of an agency;
          ``(4) coordinating the development of standards and 
        guidelines under section 20 of the National Institute 
        of Standards and Technology Act (15 U.S.C. 278g-3) with 
        agencies and offices operating or exercising control of 
        national security systems (including the National 
        Security Agency) to assure, to the maximum extent 
        feasible, that such standards and guidelines are 
        complementary with standards and guidelines developed 
        for national security systems;
          ``(5) overseeing agency compliance with the 
        requirements of this subchapter, including through any 
        authorized action under section 5113(b)(5) of the 
        Clinger-Cohen Act of 1996 (40 U.S.C. 1413(b)(5)) to 
        enforce accountability for compliance with such 
        requirements;
          ``(6) reviewing at least annually, and approving or 
        disapproving, agency information security programs 
        required under section 3534(b);
          ``(7) coordinating information security policies and 
        procedures with related information resources 
        management policies and procedures; and
          ``(8) reporting to Congress no later than March 1 of 
        each year on agency compliance with the requirements of 
        this subchapter, including--
                  ``(A) a summary of the findings of 
                evaluations required by section 3535;
                  ``(B) significant deficiencies in agency 
                information security practices;
                  ``(C) planned remedial action to address such 
                deficiencies; and
                  ``(D) a summary of, and the views of the 
                Director on, the report prepared by the 
                National Institute of Standards and Technology 
                under section 20(e)(7) of the National 
                Institute of Standards and Technology Act (15 
                U.S.C. 278g-3).''.
  ``(b) Except for the authorities described in paragraphs (4) 
and (7) of subsection (a), the authorities of the Director 
under this section shall not apply to national security 
systems.

``Sec. 3534. Federal agency responsibilities

  ``(a) The head of each agency shall--
          ``(1) be responsible for--
                  ``(A) providing information security 
                protections commensurate with the risk and 
                magnitude of the harm resulting from 
                unauthorized access, use, disclosure, 
                disruption, modification, or destruction of--
                          ``(i) information collected or 
                        maintained by or on behalf of the 
                        agency; and
                          ``(ii) information systems used or 
                        operated by an agency or by a 
                        contractor of an agency or other 
                        organization on behalf of an agency;
                  ``(B) complying with the requirements of this 
                subchapter and related policies, procedures, 
                standards, and guidelines, including--
                          ``(i) information security standards 
                        promulgated by the Director under 
                        section 5131 of the Clinger-Cohen Act 
                        of 1996 (40 U.S.C. 1441); and
                          ``(ii) information security standards 
                        and guidelines for national security 
                        systems issued in accordance with law 
                        and as directed by the President; and
                  ``(C) ensuring that information security 
                management processes are integrated with agency 
                strategic and operational planning processes;
          ``(2) ensure that senior agency officials provide 
        information security for the information and 
        information systems that support the operations and 
        assets under their control, including through--
                  ``(A) assessing the risk and magnitude of the 
                harm that could result from the unauthorized 
                access, use, disclosure, disruption, 
                modification, or destruction of such 
                information or information systems;
                  ``(B) determining the levels of information 
                security appropriate to protect such 
                information and information systems in 
                accordance with standards promulgated under 
                section 5131 of the Clinger-Cohen Act of 1996 
                (40 U.S.C. 1441) for information security 
                classifications and related requirements;
                  ``(C) implementing policies and procedures to 
                cost-effectively reduce risks to an acceptable 
                level; and
                  ``(D) periodically testing and evaluating 
                information security controls and techniques to 
                ensure that they are effectively implemented;
          ``(3) delegate to the agency Chief Information 
        Officer established under section 3506 (or comparable 
        official in an agency not covered by such section) the 
        authority to ensure compliance with the requirements 
        imposed on the agency under this subchapter, 
        including--
                  ``(A) designating a senior agency information 
                security officer who shall--
                          ``(i) carry out the Chief Information 
                        Officer's responsibilities under this 
                        section;
                          ``(ii) possess professional 
                        qualifications, including training and 
                        experience, required to administer the 
                        functions described under this section;
                          ``(iii) have information security 
                        duties as that official's primary duty; 
                        and
                          ``(iv) head an office with the 
                        mission and resources to assist in 
                        ensuring agency compliance with this 
                        section;
                  ``(B) developing and maintaining an 
                agencywide information security program as 
                required by subsection (b);
                  ``(C) developing and maintaining information 
                security policies, procedures, and control 
                techniques to address all applicable 
                requirements, including those issued under 
                section 3533 of this title, and section 5131 of 
                the Clinger-Cohen Act of 1996 (40 U.S.C. 1441);
                  ``(D) training and overseeing personnel with 
                significant responsibilities for information 
                security with respect to such responsibilities; 
                and
                  ``(E) assisting senior agency officials 
                concerning their responsibilities under 
                subparagraph (2);
          ``(4) ensure that the agency has trained personnel 
        sufficient to assist the agency in complying with the 
        requirements of this subchapter and related policies, 
        procedures, standards, and guidelines; and
          ``(5) ensure that the agency Chief Information 
        Officer, in coordination with other senior agency 
        officials, reports annually to the agency head on the 
        effectiveness of the agency information security 
        program, including progress of remedial actions.
  ``(b) Each agency shall develop, document, and implement an 
agencywide information security program, approved by the 
Director under section 3533(a)(5), to provide information 
security for the information and information systems that 
support the operations and assets of the agency, including 
those provided or managed by another agency, contractor, or 
other source, that includes--
          ``(1) periodic assessments of the risk and magnitude 
        of the harm that could result from the unauthorized 
        access, use, disclosure, disruption, modification, or 
        destruction of information and information systems that 
        support the operations and assets of the agency;
          ``(2) policies and procedures that--
                  ``(A) are based on the risk assessments 
                required by subparagraph (1);
                  ``(B) cost-effectively reduce information 
                security risks to an acceptable level;
                  ``(C) ensure that information security is 
                addressed throughout the life cycle of each 
                agency information system; and
                  ``(D) ensure compliance with--
                          ``(i) the requirements of this 
                        subchapter;
                          ``(ii) policies and procedures as may 
                        be prescribed by the Director, and 
                        information security standards 
                        promulgated under section 5131 of the 
                        Clinger-Cohen Act of 1996 (40 U.S.C. 
                        1441);
                          ``(iii) minimally acceptable system 
                        configuration requirements, as 
                        determined by the agency; and
                          ``(iv) any other applicable 
                        requirements, including standards and 
                        guidelines for national security 
                        systems issued in accordance with law 
                        and as directed by the President;
          ``(3) subordinate plans for providing adequate 
        information security for networks, facilities, and 
        systems or groups of information systems, as 
        appropriate;
          ``(4) security awareness training to inform 
        personnel, including contractors and other users of 
        information systems that support the operations and 
        assets of the agency, of--
                  ``(A) information security risks associated 
                with their activities; and
                  ``(B) their responsibilities in complying 
                with agency policies and procedures designed to 
                reduce these risks;
          ``(5) periodic testing and evaluation of the 
        effectiveness of information security policies, 
        procedures, and practices, to be performed with a 
        frequency depending on risk, but no less than annually, 
        of which such testing--
                  ``(A) shall include testing of management, 
                operational, and technical controls of every 
                information system identified in the inventory 
                required under section 3505(c); and
                  ``(B) may include testing relied on in a 
                evaluation under section 3535;
          ``(6) a process for planning, implementing, 
        evaluating, and documenting remedial action to address 
        any deficiencies in the information security policies, 
        procedures, and practices of the agency;
          ``(7) procedures for detecting, reporting, and 
        responding to security incidents, including--
                  ``(A) mitigating risks associated with such 
                incidents before substantial damage is done; 
                and
                  ``(B) notifying and consulting with, as 
                appropriate--
                          ``(i) law enforcement agencies and 
                        relevant Offices of Inspector General;
                          ``(ii) an office designated by the 
                        President for any incident involving a 
                        national security system; and
                          ``(iii) any other agency or office, 
                        in accordance with law or as directed 
                        by the President; and
          ``(8) plans and procedures to ensure continuity of 
        operations for information systems that support the 
        operations and assets of the agency.
  ``(c) Each agency shall--
          ``(1) report annually to the Director, the Committees 
        on Government Reform and Science of the House of 
        Representatives, the Committees on Governmental Affairs 
        and Commerce, Science, and Transportation of the 
        Senate, the appropriate authorization and 
        appropriations committees of Congress, and the 
        Comptroller General on the adequacy and effectiveness 
        of information security policies, procedures, and 
        practices, and compliance with the requirements of this 
        subchapter, including compliance with each requirement 
        of subsection (b);
          ``(2) address the adequacy and effectiveness of 
        information security policies, procedures, and 
        practices in plans and reports relating to--
                  ``(A) annual agency budgets;
                  ``(B) information resources management under 
                subchapter 1 of this chapter;
                  ``(C) information technology management under 
                the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 
                et seq.);
                  ``(D) program performance under sections 1105 
                and 1115 through 1119 of title 31, and sections 
                2801 and 2805 of title 39;
                  ``(E) financial management under chapter 9 of 
                title 31, and the Chief Financial OfficersAct 
of 1990 (31 U.S.C. 501 note; Public Law 101-576) (and the amendments 
made by that Act);
                  ``(F) financial management systems under the 
                Federal Financial Management Improvement Act 
                (31 U.S.C. 3512 note); and
                  ``(G) internal accounting and administrative 
                controls under section 3512 of title 31, United 
                States Code, (known as the `Federal Managers 
                Financial Integrity Act'); and
          ``(3) report any significant deficiency in a policy, 
        procedure, or practice identified under paragraph (1) 
        or (2)--
                  ``(A) as a material weakness in reporting 
                under section 3512 of title 31, United States 
                Code; and
                  ``(B) if relating to financial management 
                systems, as an instance of a lack of 
                substantial compliance under the Federal 
                Financial Management Improvement Act (31 U.S.C. 
                3512 note).
  ``(d)(1) In addition to the requirements of subsection (c), 
each agency, in consultation with the Director, shall include 
as part of the performance plan required under section 1115 of 
title 31 a description of--
          ``(A) the time periods, and
          ``(B) the resources, including budget, staffing, and 
        training,
that are necessary to implement the program required under 
subsection (b).
  ``(2) The description under paragraph (1) shall be based on 
the risk assessments required under subsection (b)(2)(1).
  ``(e) Each agency shall provide the public with timely notice 
and opportunities for comment on proposed information security 
policies and procedures to the extent that such policies and 
procedures affect communication with the public.

``Sec. 3535. Annual independent evaluation

  ``(a)(1) Each year each agency shall have performed an 
independent evaluation of the information security program and 
practices of that agency to determine the effectiveness of such 
program and practices.
  ``(2) Each evaluation by an agency under this section shall 
include--
          ``(A) testing of the effectiveness of information 
        security policies, procedures, and practices of a 
        representative subset of the agency's information 
        systems;
          ``(B) an assessment (made on the basis of the results 
        of the testing) of compliance with--
                  ``(i) the requirements of this subchapter; 
                and
                  ``(ii) related information security policies, 
                procedures, standards, and guidelines; and
          ``(C) separate presentations, as appropriate, 
        regarding information security relating to national 
        security systems.
  ``(b) Subject to subsection (c)--
          ``(1) for each agency with an Inspector General 
        appointed under the Inspector General Act of 1978, the 
        annual evaluation required by this section shall be 
        performed by the Inspector General or by an independent 
        external auditor, as determined by the Inspector 
        General of the agency; and
          ``(2) for each agency to which paragraph (1) does not 
        apply, the head of the agency shall engage an 
        independent external auditor to perform the evaluation.
  ``(c) For each agency operating or exercising control of a 
national security system, that portion of the evaluation 
required by this section directly relating to a national 
security system shall be performed--
          ``(1) only by an entity designated by the agency 
        head; and
          ``(2) in such a manner as to ensure appropriate 
        protection for information associated with any 
        information security vulnerability in such system 
        commensurate with the risk and in accordance with all 
        applicable laws.
  ``(d) The evaluation required by this section--
          ``(1) shall be performed in accordance with generally 
        accepted government auditing standards; and
          ``(2) may be based in whole or in part on an audit, 
        evaluation, or report relating to programs or practices 
        of the applicable agency.
  ``(e) Each year, not later than such date established by the 
Director, the head of each agency shall submit to the Director 
the results of the evaluation required under this section.
  ``(f) Agencies and evaluators shall take appropriate steps to 
ensure the protection of information which, if disclosed, may 
adversely affect information security. Such protections shall 
be commensurate with the risk and comply with all applicable 
laws and regulations.
  ``(g)(1) The Director shall summarize the results of the 
evaluations conducted under this section in the report to 
Congress required under section 3533(a)(8).
  ``(2) The Director's report to Congress under this subsection 
shall summarize information regarding information security 
relating to national security systems in such a manner as to 
ensure appropriate protection for information associated with 
any information security vulnerability in such system 
commensurate with the risk and in accordance with all 
applicable laws.
  ``(3) Evaluations and any other descriptions of information 
systems under the authority and control of the Director of 
Central Intelligence or of National Foreign Intelligence 
Programs systems under the authority and control of the 
Secretary of Defense shall be made available to Congress only 
through the appropriate oversight committees of Congress, in 
accordance with applicable laws.
  ``(h) The Comptroller General shall periodically evaluate and 
report to Congress on--
          ``(1) the adequacy and effectiveness of agency 
        information security policies and practices; and
          ``(2) implementation of the requirements of this 
        subchapter.

``Sec. 3536. National security systems

  ``The head of each agency operating or exercising control of 
a national security system shall be responsible for ensuring 
that the agency--
          ``(1) provides information security protections 
        commensurate with the risk and magnitude of the harm 
        resulting from the unauthorized access, use, 
        disclosure, disruption, modification, or destruction of 
        the information contained in such system;
          ``(2) implements information security policies and 
        practices as required by standards and guidelines for 
        national security systems, issued in accordance with 
        law and as directed by the President; and
          ``(3) complies with the requirements of this 
        subchapter.

``Sec. 3537. Authorization of appropriations

  ``There are authorized to be appropriated to carry out the 
provisions of this subchapter such sums as may be necessary for 
each of fiscal years 2003 through 2007.

``Sec. 3538. Effect on existing law

  ``Nothing in this subchapter, section 5131 of the Clinger-
Cohen Act of 1996 (40 U.S.C. 1441), or section 20 of the 
National Standards and Technology Act (15 U.S.C. 278g-3) may be 
construed as affecting the authority of the President, the 
Office of Management and Budget or the Director thereof, the 
National Institute of Standards and Technology, or the head of 
any agency, with respect to the authorized use or disclosure of 
information, including with regard to the protection of 
personal privacy under section 552a of title 5, the disclosure 
of information under section 552 of title 5, the management and 
disposition of records under chapters 29, 31, or 33 of title 
44, the management of information resources under subchapter I 
of chapter 35 of this title, or the disclosure of information 
to the Congress or the Comptroller General of the United 
States.''.
          (2) Clerical amendment.--The items in the table of 
        sections at the beginning of such chapter 35 under the 
        heading ``SUBCHAPTER II'' are amended to read as 
        follows:

``3531. Purposes.
``3532. Definitions.
``3533. Authority and functions of the Director.
``3534. Federal agency responsibilities.
``3535. Annual independent evaluation.
``3536. National security systems.
``3537. Authorization of appropriations.
``3538. Effect on existing law.''.

  (c) Information Security Responsibilities of Certain 
Agencies.--
          (1) National security responsibilities.--(A) Nothing 
        in this Act (including any amendment made by this Act) 
        shall supersede any authority of the Secretary of 
        Defense, the Director of Central Intelligence, or other 
        agency head, as authorized by law and as directed by 
        the President, with regard to the operation, control, 
        or management of national security systems, as defined 
        by section 3532(3) of title 44, United States Code.
          (B) Section 2224 of title 10, United States Code, is 
        amended--
                  (i) in subsection 2224(b), by striking ``(b) 
                Objectives and Minimum Requirements.--(1)'' and 
                inserting ``(b) Objectives of the Program.--'';
                  (ii) in subsection 2224(b), by striking ``(2) 
                the program shall at a minimum meet the 
                requirements of section 3534 and 3535 of title 
                44, United States Code.''; and
                  (iii) in subsection 2224(c), by inserting ``, 
                including through compliance with subtitle II 
                of chapter 35 of title 44'' after 
                ``infrastructure''.
          (2) Atomic energy act of 1954.--Nothing in this Act 
        shall supersede any requirement made by or under the 
        Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). 
        Restricted Data or Formerly Restricted Data shall be 
        handled, protected, classified, downgraded, and 
        declassified in conformity with the Atomic Energy Act 
        of 1954 (42 U.S.C. 2011 et seq.).

SEC. 1102. MANAGEMENT OF INFORMATION TECHNOLOGY.

  Section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
1441) is amended to read as follows:

``SEC. 5131. RESPONSIBILITIES FOR FEDERAL INFORMATION SYSTEMS 
                    STANDARDS.

  ``(a)(1)(A) Except as provided under paragraph (2), the 
Director of the Office of Management and Budget shall, on the 
basis of proposed standards developed by the National Institute 
of Standards and Technology pursuant to paragraphs (2) and (3) 
of section 20(a) of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g-3(a)) and in consultation with 
the Secretary of Homeland Security, promulgate information 
security standards pertaining to Federal information systems.
  ``(B) Standards promulgated under subparagraph (A) shall 
include--
          ``(i) standards that provide minimum information 
        security requirements as determined under section 20(b) 
        of the National Institute of Standards and Technology 
        Act (15 U.S.C. 278g-3(b)); and
          ``(ii) such standards that are otherwise necessary to 
        improve the efficiency of operation or security of 
        Federal information systems.
  ``(C) Information security standards described under 
subparagraph (B) shall be compulsory and binding.
  ``(2) Standards and guidelines for national security systems, 
as defined under section 3532(3) of title 44, United States 
Code, shall be developed, promulgated, enforced, and overseen 
as otherwise authorized by law and as directed by the 
President.
  ``(b) The head of an agency may employ standards for the 
cost-effective information security for all operations and 
assets within or under the supervision of that agency that are 
more stringent than the standards promulgated by the Director 
under this section, if such standards--
          ``(1) contain, at a minimum, the provisions of those 
        applicable standards made compulsory and binding by the 
        Director; and
          ``(2) are otherwise consistent with policies and 
        guidelines issued under section 3533 of title 44, 
        United States Code.
  ``(c)(1) The decision regarding the promulgation of any 
standard by the Director under subsection (a) shall occur not 
later than 6 months after the submission of the proposed 
standard to the Director by the National Institute of Standards 
and Technology, as provided under section 20 of the National 
Institute of Standards and Technology Act (15 U.S.C. 278g-3).
  ``(2) A decision by the Director to significantly modify, or 
not promulgate, a proposed standard submitted to the Director 
by the National Institute of Standards and Technology, as 
provided under section 20 of the National Institute of 
Standards and Technology Act (15 U.S.C. 278g-3), shall be made 
after the public is given an opportunity to comment on the 
Director's proposed decision.''.
  ``(d) In this section, the term `information security' has 
the meaning given that term in section 3532(b)(1) of title 44, 
United States Code.''.

SEC. 1103. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

  Section 20 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g-3), is amended by striking the 
text and inserting the following:
  ``(a) The Institute shall--
          ``(1) have the mission of developing standards, 
        guidelines, and associated methods and techniques for 
        information systems;
          ``(2) develop standards and guidelines, including 
        minimum requirements, for information systems used or 
        operated by an agency or by a contractor of an agency 
        or other organization on behalf of an agency, other 
        than national security systems (as defined in section 
        3532(b)(2) of title 44, United States Code);
          ``(3) develop standards and guidelines, including 
        minimum requirements, for providing adequate 
        information security for all agency operations and 
        assets, but such standards and guidelines shall not 
        apply to national security systems; and
          ``(4) carry out the responsibilities described in 
        paragraph (3) through the Computer Security Division.
  ``(b) The standards and guidelines required by subsection (a) 
shall include, at a minimum--
          ``(1)(A) standards to be used by all agencies to 
        categorize all information and information systems 
        collected or maintained by or on behalf of each agency 
        based on the objectives of providing appropriate levels 
        of information security according to a range of risk 
        levels;
          ``(B) guidelines recommending the types of 
        information and information systems to be included in 
        each such category; and
          ``(C) minimum information security requirements for 
        information and information systems in each such 
        category;
          ``(2) a definition of and guidelines concerning 
        detection and handling of information security 
        incidents; and
          ``(3) guidelines developed in coordination with the 
        National Security Agency for identifying an information 
        system as a national security system consistent with 
        applicable requirements for national security systems, 
        issued in accordance with law and as directed by the 
        President.
  ``(c) In developing standards and guidelines required by 
subsections (a) and (b), the Institute shall--
          ``(1) consult with other agencies and offices 
        (including, but not limited to, the Director of the 
        Office of Management and Budget, the Departments of 
        Defense and Energy, the National Security Agency, the 
        General Accounting Office, and the Secretary of 
        Homeland Security) to assure--
                  ``(A) use of appropriate information security 
                policies, procedures, and techniques, in order 
                to improve information security and avoid 
                unnecessary and costly duplication of effort; 
                and
                  ``(B) that such standards and guidelines are 
                complementary with standards and guidelines 
                employed for the protection of national 
                security systems and information contained in 
                such systems;
          ``(2) provide the public with an opportunity to 
        comment on proposed standards and guidelines;
          ``(3) submit to the Director of the Office of 
        Management and Budget for promulgation under section 
        5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
        1441)--
                  ``(A) standards, as required under subsection 
                (b)(1)(A), no later than 12 months after the 
                date of the enactment of this section; and
                  ``(B) minimum information security 
                requirements for each category, as required 
                under subsection (b)(1)(C), no later than 36 
                months after the date of the enactment of this 
                section;
          ``(4) issue guidelines as required under subsection 
        (b)(1)(B), no later than 18 months after the date of 
        the enactment of this Act;
          ``(5) ensure that such standards and guidelines do 
        not require specific technological solutions or 
        products, including any specific hardware or software 
        security solutions;
          ``(6) ensure that such standards and guidelines 
        provide for sufficient flexibility to permit 
        alternative solutions to provide equivalent levels of 
        protection for identified information security risks; 
        and
          ``(7) use flexible, performance-based standards and 
        guidelines that, to the greatest extent possible, 
        permit the use of off-the-shelf commercially developed 
        information security products.''
  ``(d) The Institute shall--
          ``(1) submit standards developed pursuant to 
        subsection (a), along with recommendations as to the 
        extent to which these should be made compulsory and 
        binding, to the Director of the Office of Management 
        and Budget for promulgation under section 5131 of the 
        Clinger-Cohen Act of 1996 (40 U.S.C. 1441);
          ``(2) provide assistance to agencies regarding--
                  ``(A) compliance with the standards and 
                guidelines developed under subsection (a);
                  ``(B) detecting and handling information 
                security incidents; and
                  ``(C) information security policies, 
                procedures, and practices;
          ``(3) conduct research, as needed, to determine the 
        nature and extent of information security 
        vulnerabilities and techniques for providing cost-
        effective information security;
          ``(4) develop and periodically revise performance 
        indicators and measures for agency information security 
        policies and practices;
          ``(5) evaluate private sector information security 
        policies and practices and commercially available 
        information technologies to assess potential 
        application by agencies to strengthen information 
        security;
          ``(6) evaluate security policies and practices 
        developed for national security systems to assess 
        potential application by agencies to strengthen 
        information security;
          ``(7) periodically assess the effectiveness of 
        standards and guidelines developed under this section 
        and undertake revisions as appropriate;
          ``(8) solicit and consider the recommendations of the 
        Information Security and Privacy Advisory Board, 
        established by section 21, regarding standards and 
        guidelines developed under subsection (a) and submit 
        such recommendations to the Director of the Office of 
        Management and Budget with such standards submitted to 
        the Director; and
          ``(9) prepare an annual public report on activities 
        undertaken in the previous year, and planned for the 
        coming year, to carry out responsibilities under this 
        section.
  ``(e) As used in this section--
          ``(1) the term `agency' has the same meaning as 
        provided in section 3502(1) of title 44, United States 
        Code;
          ``(2) the term `information security' has the same 
        meaning as provided in section 3532(1) of such title;
          ``(3) the term `information system' has the same 
        meaning as provided in section 3502(8) of such title;
          ``(4) the term `information technology' has the same 
        meaning as provided in section 5002 of the Clinger-
        Cohen Act of 1996 (40 U.S.C. 1401); and
          ``(5) the term `national security system' has the 
        same meaning as provided in section 3532(b)(2) of such 
        title.''.

SEC. 1104. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.

  Section 21 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g-4), is amended--
          (1) in subsection (a), by striking ``Computer System 
        Security and Privacy Advisory Board'' and inserting 
        ``Information Security and Privacy Advisory Board'';
          (2) in subsection (a)(1), by striking ``computer or 
        telecommunications'' and inserting ``information 
        technology'';
          (3) in subsection (a)(2)--
                  (A) by striking ``computer or 
                telecommunications technology'' and inserting 
                ``information technology''; and
                  (B) by striking ``computer or 
                telecommunications equipment'' and inserting 
                ``information technology'';
          (4) in subsection (a)(3)--
                  (A) by striking ``computer systems'' and 
                inserting ``information system''; and
                  (B) by striking ``computer systems security'' 
                and inserting ``information security'';
          (5) in subsection (b)(1) by striking ``computer 
        systems security'' and inserting ``information 
        security'';
          (6) in subsection (b) by striking paragraph (2) and 
        inserting the following:
          ``(2) to advise the Institute and the Director of the 
        Office of Management and Budget on information security 
        and privacy issues pertaining to Federal Government 
        information systems, including through review of 
        proposed standards and guidelines developed under 
        section 20; and'';
          (7) in subsection (b)(3) by inserting ``annually'' 
        after ``report'';
          (8) by inserting after subsection (e) the following 
        new subsection:
  ``(f) The Board shall hold meetings at such locations and at 
such time and place as determined by a majority of the 
Board.'';
          (9) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively; and
          (10) by striking subsection (h), as redesignated by 
        paragraph (9), and inserting the following:
  ``(h) As used in this section, the terms ``information 
system'' and ``information technology'' have the meanings given 
in section 20.''.

SEC. 1105. TECHNICAL AND CONFORMING AMENDMENTS.

  (a) Computer Security Act.--Sections 5 and 6 of the Computer 
Security Act of 1987 (40 U.S.C. 1441 note) are repealed.
  (b) Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001.--The Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398) is 
amended by striking subtitle G of title X.
  (c) Paperwork Reduction Act.--(1) Section 3504(g) of title 
44, United States Code, is amended--
          (A) by adding ``and'' at the end of paragraph (1);
          (B) in paragraph (2)--
                  (i) by striking ``sections 5 and 6 of the 
                Computer Security Act of 1987 (40 U.S.C. 759 
                note)'' and inserting ``subchapter II of this 
                title''; and
                  (ii) by striking the semicolon and inserting 
                a period; and
          (C) by striking paragraph (3).
  (2) Section 3505 of such title is amended by adding at the 
end--
  ``(c)(1) The head of each agency shall develop and maintain 
an inventory of the information systems (including national 
security systems) operated by or under the control of such 
agency;
  ``(2) The identification of information systems in an 
inventory under this subsection shall include an identification 
of the interfaces between each such system and all other 
systems or networks, including those not operated by or under 
the control of the agency;
  ``(3) Such inventory shall be--
          ``(A) updated at least annually;
          ``(B) made available to the Comptroller General; and
          ``(C) used to support information resources 
        management, including--
                  ``(i) preparation and maintenance of the 
                inventory of information resources under 
                section 3506(b)(4);
                  ``(ii) information technology planning, 
                budgeting, acquisition, and management under 
                section 3506(h), the Clinger-Cohen Act of 1996, 
                and related laws and guidance;
                  ``(iii) monitoring, testing, and evaluation 
                of information security controls under 
                subchapter II;
                  ``(iv) preparation of the index of major 
                information systems required under section 
                552(g) of title 5, United States Code; and
                  ``(v) preparation of information system 
                inventories required for records management 
                under chapters 21, 29, 31, and 33.
  ``(4) The Director shall issue guidance for and oversee the 
implementation of the requirements of this subsection.''.
  (3) Section 3506(g) of such title is amended--
          (A) by adding ``and'' at the end of paragraph (1);
          (B) in paragraph (2)--
                  (i) by striking ``the Computer Security Act 
                of 1987 (40 U.S.C. 759 note)'' and inserting 
                ``subchapter II of this title''; and
                  (ii) by striking the semicolon and inserting 
                a period; and
          (C) by striking paragraph (3).

SEC. 1106. CONSTRUCTION.

  Nothing in this Act, or the amendments made by this Act, 
affects the authority of the National Institute of Standards 
and Technology or the Department of Commerce relating to the 
development and promulgation of standards or guidelines under 
paragraphs (1) and (2) of section 20(a) of the National 
Institute of Standards and Technology Act (15 U.S.C. 278g-
3(a)).
  In section 752(b)(1), strike ``and extensive''.
  In section 752(b)(1), strike ``and'' and insert ``or''.
  In section 752(b)(6), strike ``evaluation'' and insert 
``Evaluation''.
  At the end of section 752(b), insert:
          (7) Anti-terrorism technology that would be effective 
        in facilitating the defense against acts of terrorism.
  In section 753(d)(1), insert ``or other'' after 
``liability''.
  In section 753(d)(3), strike ``those products'' and insert 
``anti-terrorism technology''.
  In section 753(d)(3), strike ``product'' and insert ``anti-
terrorism technology''.
  In section 754(a)(1), strike, ``to non-federal'' and insert 
``to Federal and non-Federal''.
  In section 754(a)(1), insert ``and certified by the 
Secretary'' after ``section''.
  In section 755(1), strike ``device, or technology designed, 
developed, or modified'' and insert ``equipment, service 
(including support services), device, or technology (including 
information technology) designed, developed, modified, or 
procured''.
  Page 182, line 2, strike ``and'' and insert ``or''.
  At the end of subtitle G of title VII of the bill, add the 
following (and conform the table of contents of the bill 
accordingly):

SEC. 774. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT 
                    AMENDMENTS.

  The Air Transportation Safety and System Stabilization Act 
(49 U.S.C. 40101 note) is amended--
          (1) in section 408 by striking the last sentence of 
        subsection (c); and
          (2) in section 402 by striking paragraph (1) and 
        inserting the following:
          ``(1) Air carrier.--The term `air carrier' means a 
        citizen of the United States undertaking by any means, 
        directly or indirectly, to provide air transportation 
        and includes employees and agents (including persons 
        engaged in the business of providing air transportation 
        security and their affiliates) of such citizen. For 
        purposes of the preceding sentence, the term `agent', 
        as applied to persons engaged in the business of 
        providing air transportation security, shall only 
        include persons that have contracted directly with the 
        Federal Aviation Administration on or after February 
        17, 2002, to provide such security, or are not 
        debarred.''.
  Page 12, line 5, strike ``and''.
  Page 12, line 9, strike the period and insert ``; and''.
  Page 12, after line 9, insert the following:
                  (G) monitor connections between illegal drug 
                trafficking and terrorism, coordinate efforts 
                to sever such connections, and otherwise 
                contribute to efforts to interdict illegal drug 
                trafficking.
  Page 195, line 16, after ``terrorism.'' insert: ``Such 
official shall--
          (1) ensure the adequacy of resources within the 
        Department for illicit drug interdiction; and
          (2) serve as the United States Interdiction 
        Coordinator for the Director of National Drug Control 
        Policy.''.
  In section 307(b)(1)--
          (1) strike ``and'' at the end of subparagraph (A);
          (2) redesignate subparagraph (B) as subparagraph (C); 
        and
          (3) after subparagraph (A), insert the following new 
        subparagraph:
          (B) ensure that the research funded is of high 
        quality, as determined through merit review processes 
        developed under section 301(10); and
  In section 766 of the bill, insert ``sections 305(c) and 
752(c) of'' after ``provided in''.
  Add at the end of title V of the bill the following section:

SEC. 506. SENSE OF CONGRESS REGARDING FUNDING OF TRAUMA SYSTEMS.

  It is the sense of the Congress that States should give 
particular emphasis to developing and implementing the trauma 
care and burn center care components of the State plans for the 
provision of emergency medical services using funds authorized 
through Public Law 107-188 for grants to improve State, local, 
and hospital preparedness for and response to bioterrorism and 
other public health emergencies.
                              ----------                              


 22. An Amendment To Be Offered by Representative Turner of Texas, or 
                 His Designee, Debatable for 40 Minutes

  Strike subtitle F of title VII and insert the following:

              Subtitle F--Risk Sharing and Indemnification

SEC. 751. RISK SHARING AND INDEMNIFICATION.

  (a) Definitions.--Section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403) is amended by adding at 
the end the following new paragraphs:
          ``(16) The term `anti-terrorism technology and 
        services' means any product, equipment, service or 
        device, including information technology, system 
        integration and any other kind of services (including 
        support services) related to technology, designed, 
        developed, modified or procured for the purpose of 
        preventing, detecting, identifying, or otherwise 
        deterring acts of terrorism.
          ``(17) The term `act of terrorism,' means the 
        calculated attack or threat of attack against persons, 
        property or infrastructure to inculcate fear, 
        intimidate or coerce a government, the civilian 
        population, or any segment thereof, in the pursuit of 
        political, religious or ideological grounds.
          ``(18) The term `insurance carrier' means any 
        corporation, association, society, order, firm, 
        company, mutual, partnership, individual, aggregation 
        of individuals, or any other legal entity that provides 
        commercial property and casualty insurance. Such term 
        includes any affiliates of a commercial insurance 
        carrier.
          ``(19) The term `liability insurance' means insurance 
        for legal liabilities incurred by the insured resulting 
        from--
                  ``(A) loss of or damage to property of 
                others;
                  ``(B) ensuing loss of income or extra expense 
                incurred because of loss of or damage to 
                property of others;
                  ``(C) bodily injury (including death) to 
                persons other than the insured or its 
                employees; or
                  ``(D) loss resulting from debt or default of 
                another.
          ``(20) The term `homeland security procurement' means 
        any procurement of anti-terrorism technology and 
        services, as determined by the head of the agency, 
        procured for the purpose of preventing, detecting, or 
        otherwise deterring acts of terrorism.
          ``(21) The term `information technology'--
                  ``(A) means any equipment or interconnected 
                system or subsystem of equipment that is used 
                in the automatic acquisition, storage, 
                manipulation, management, movement, control, 
                display, switching, interchange, transmission, 
                or reception of data or information;
                  ``(B) includes computers, ancillary 
                equipment, software, firmware, and similar 
                procedures, services (including support 
                services), and related resources; and
                  ``(C) does not include any equipment that is 
                acquired by a Federal contractor incidental to 
                a Federal contract.''.
  (b) Federal Risk Sharing and Indemnification.--The Office of 
Federal Procurement Policy Act is further amended by adding at 
the end the following new sections:

``SEC. 40. FEDERAL RISK SHARING AND INDEMNIFICATION.

  ``(a) When conducting a homeland security procurement the 
head of an agency may include in a contract an indemnification 
provision specified in subsection (e) if the head of the agency 
determines in writing that it is in the best interest of the 
Government to do so and determines that--
          ``(1) the anti-terrorism technology and services are 
        needed to protect critical infrastructure services or 
        facilities;
          ``(2) the anti-terrorism technology and services 
        would be effective in facilitating the defense against 
        acts of terrorism; and
          ``(3) the supplier of the anti-terrorism technology 
        is unable to secure insurance coverage adequate to make 
        the anti-terrorism technology and services available to 
        the Government.
  ``(b) The head of the agency may exercise the authority in 
this section only if authorized by the Director of the Office 
of Management and Budget to do so.
  ``(c) In order to be eligible for an indemnification 
provision specified in this section, any entity that provides 
anti-terrorism technology and services to an agency identified 
in this Act shall obtain liability insurance of such types and 
in such amounts, to the maximum extent practicable as 
determined by the agency, to satisfy otherwise compensable 
third party claims resulting from an act of terrorism when 
anti-terrorism technologies and services have been deployed in 
defense against acts of terrorism.
  ``(d) An indemnification provision included in a contract 
under the authority of this section shall be without regard to 
other provisions of law relating to the making, performance, 
amendment or modification of contracts.
  ``(e)(1) The indemnification provision to be included in a 
contract under the authority of this section shall indemnify, 
in whole or in part, the contractor for liability, including 
reasonable expenses of litigation and settlement, that is not 
covered by the insurance required under subsection (c), for:
          ``(A) Claims by third persons, including employees of 
        the contractor, for death, personal injury, or loss of, 
        damage to, or loss of use of property, or economic 
        losses resulting from an act of terrorism;
          ``(B) Loss of, damage to, or loss of use of property 
        of the Government; and
          ``(C) Claims arising (i) from indemnification 
        agreements between the contractor and a subcontractor 
        or subcontractors, or (ii) from such arrangements and 
        further indemnification arrangements between 
        subcontractors at any tier, provided that all such 
        arrangements were entered into pursuant to the terms of 
        this section.
  ``(2) Liabilities arising out of the contractor's willful 
misconduct or lack of good faith shall not be entitled to 
indemnification under the authority of this section.
  ``(f) An indemnification provision included in a contract 
under the authority of this section shall be negotiated and 
signed by the agency contracting officer and an authorized 
representative of the contractor and approved by the head of 
the agency prior to the commencement of performance of the 
contract.
  ``(g) The authority conferred by this section shall be 
limited to the following agencies:
          ``(1) The Department of Homeland Security;
          ``(2) The Department of Agriculture;
          ``(3) The Department of Commerce;
          ``(4) The Department of Defense;
          ``(5) The Department of Energy;
          ``(6) The Department of Health and Human Services;
          ``(7) The Department of the Interior;
          ``(8) The Department of Justice;
          ``(9) The Department of State;
          ``(10) The Department of the Treasury;
          ``(11) The Department of Transportation;
          ``(12) The Federal Emergency Management Agency;
          ``(13) The Federal Reserve System;
          ``(14) The General Services Administration;
          ``(15) The National Aeronautics and Space 
        Administration;
          ``(16) The Tennessee Valley Authority;
          ``(17) The U.S. Postal Service;
          ``(18) The Central Intelligence Agency;
          ``(19) The Architect of the Capitol; and
          ``(20) Any other agency designated by the Secretary 
        of Homeland Security that engages in homeland security 
        contracting activities.
  ``(h) If any suit or action is filed or any claim is made 
against the contractor for any losses to third parties arising 
out of an act of terrorism when its anti-terrorism technologies 
and services have been deployed such that the cost and expense 
of the losses may be indemnified by the United States under 
this section, the contractor shall--
          ``(1) immediately notify the Secretary and promptly 
        furnish copies of all pertinent papers received;
          ``(2) authorize United States Government 
        representatives to collaborate with counsel for the 
        contractor's insurance carrier in settling or defending 
        the claim when the amount of the liability claimed may 
        exceed the amount of insurance coverage; and
          ``(3) authorize United States Government 
        representatives to settle or defend the claim and to 
        represent the contractor in or to take charge of any 
        litigation, if required by the United States 
        Government, when the liability is not insured.
The contractor may, at its own expense, be associated with the 
United States Government representatives in any such claim or 
litigation.''.
  (c) State and Local Risk Sharing and Indemnification.--(1) 
The Secretary may, upon the application of a State or local 
government, provide for indemnification of contractors who 
provide anti-terrorism technologies and services to State or 
local governments if the Secretary determines in writing that--
          (A) it is in the best interest of the Government to 
        do so;
          (B) the State or local government is unable to 
        provide the required indemnification; and
          (C) the anti-terrorism technology and services are 
        needed to protect critical infrastructure services or 
        facilities, would be effective in facilitating the 
        defense against acts of terrorism, and would not be 
        reasonably available absent indemnification.
  (2) The Secretary may exercise the authority in this 
subsection only if authorized by the Director of the Office of 
Management and Budget to do so.
  (3) In order to be eligible for indemnification, any entity 
that provides anti-terrorism technology and services to a State 
or local government shall obtain liability insurance of such 
types and in such amounts to the maximum extent practicable, as 
determined by the Secretary, to satisfy otherwise compensable 
third party claims resulting from an act of terrorism when 
anti-terrorism technologies and services have been deployed in 
defense against acts of terrorism.
  (4) The indemnification provided under the authority of this 
subsection shall indemnify, in whole or in part, the contractor 
for liability, including reasonable expenses of litigation and 
settlement, that is not covered by the insurance required under 
paragraph (3) for--
          (A) claims by third persons, including employees of 
        the contractor, for death, personal injury, or loss of, 
        damage to, or loss of use of property, or economic 
        losses resulting from an act of terrorism;
          (B) loss of, damage to, or loss of use of property of 
        the Government; and
          (C) claims arising--
                  (i) from indemnification agreements between 
                the contractor and a subcontractor or 
                subcontractors; or
                  (ii) from such arrangements and further 
                indemnification arrangements between 
                subcontractors at any tier, provided that all 
                such arrangements were entered into pursuant to 
                the terms of this subsection.
Liabilities arising out of the contractor's willful misconduct 
or lack of good faith shall not be entitled to indemnification 
under the authority of this subsection.
  (5) If any suit or action is filed or any claim is made 
against the contractor for any losses to third parties arising 
out of an act of terrorism when its anti-terrorism technologies 
and services have been deployed such that the cost and expense 
of the losses may be indemnified by the United States under 
this subsection, the contractor shall--
          (A) immediately notify the Secretary and promptly 
        furnish copies of all pertinent papers received;
          (B) authorize United States Government 
        representatives to collaborate with counsel for the 
        contractor's insurance carrier in settling or defending 
        the claim when the amount of the liability claimed may 
        exceed the amount of insurance coverage; and
          (C) authorize United States Government 
        representatives to settle or defend the claim and to 
        represent the contractor in or to take charge of any 
        litigation, if required by the United States 
        Government, when the liability is not insured.
The contractor may, at its own expense, be associated with the 
United States Government representatives in any such claim or 
litigation.
  (6) In this subsection, the definitions in paragraphs (16) 
through (21) of section 4 of the Office of Federal Procurement 
Policy Act shall apply.
  (c) Implementing Regulations.--Not later than 120 days after 
the date of the enactment of this Act, the Federal Acquisition 
Regulation shall be amended to ensure consistency between the 
Federal Acquisition Regulation and this section.
                              ----------                              


23. An Amendment To Be Offered by Representative Oberstar of Minnesota, 
               or His Designee, Debatable for 45 Minutes

    Strike section 409 of the bill.
    Redesignate section 410 of the bill as section 409.
    Conform the table of contents of the bill accordingly.
                              ----------                              


    24. An Amendment To Be Offered by Representative Schakowsky of 
          Illinois, or Her Designee, Debatable for 30 Minutes

  Strike subtitle C of title VII.
  Strike section 762 and insert the following:

SEC. 762. REMEDIES FOR RETALIATION AGAINST WHISTLEBLOWERS.

  Section 7211 of title 5, United States Code, is amended--
          (1) by inserting ``(a)'' before ``The right''; and
          (2) by adding at the end the following:
  ``(b) Any employee aggrieved by a violation of subsection (a) 
may bring a civil action in the appropriate United States 
district court, within 3 years after the date on which such 
violation occurs, against any agency, organization, or other 
person responsible for the violation, for lost wages and 
benefits, reinstatement, costs and attorney fees, compensatory 
damages, and equitable, injunctive, or any other relief that 
the court considers appropriate. Any such action shall, upon 
request of the party bringing the action, be tried by the court 
with a jury.
  ``(c) The same legal burdens of proof in proceedings under 
subsection (b) shall apply as under sections 1214(b)(4)(B) and 
1221(e) in the case of an alleged prohibited personnel practice 
described in section 2302(b)(8).
  ``(d) For purposes of this section, the term `employee' means 
an employee (as defined by section 2105) and any individual 
performing services under a personal services contract with the 
Government (including as an employee of an organization).''.
                              ----------                              


25. An Amendment To Be Offered by Representative Davis of Virginia, or 
                 Her Designee, Debatable for 20 Minutes

    Strike paragraph (2) of section 772, and insert the 
following:
          (2) Covered federal agency.--The term ``covered 
        Federal agency'' means the Department of Homeland 
        Security and any agency designated by the Department or 
        with which the Department shares critical 
        infrastructure information.
                              ----------                              


26. An Amendment To Be Offered by Representative Chambliss of Georgia, 
               or His Designee, Debatable for 20 Minutes

  At the end of title VII add the following new subtitle:

                    Subtitle H--Information Sharing

SEC. 780. SHORT TITLE.

  This subtitle may be cited as the ``Homeland Security 
Information Sharing Act''.

SEC. 781. FINDINGS AND SENSE OF CONGRESS.

  (a) Findings.--The Congress finds the following:
          (1) The Federal Government is required by the 
        Constitution to provide for the common defense, which 
        includes terrorist attack.
          (2) The Federal Government relies on State and local 
        personnel to protect against terrorist attack.
          (3) The Federal Government collects, creates, 
        manages, and protects classified and sensitive but 
        unclassified information to enhance homeland security.
          (4) Some homeland security information is needed by 
        the State and local personnel to prevent and prepare 
        for terrorist attack.
          (5) The needs of State and local personnel to have 
        access to relevant homeland security information to 
        combat terrorism must be reconciled with the need to 
        preserve the protected status of such information and 
        to protect the sources and methods used to acquire such 
        information.
          (6) Granting security clearances to certain State and 
        local personnel is one way to facilitate the sharing of 
        information regarding specific terrorist threats among 
        Federal, State, and local levels of government.
          (7) Methods exist to declassify, redact, or otherwise 
        adapt classified information so it may be shared with 
        State and local personnel without the need for granting 
        additional security clearances.
          (8) State and local personnel have capabilities and 
        opportunities to gather information on suspicious 
        activities and terrorist threats not possessed by 
        Federal agencies.
          (9) The Federal Government and State and local 
        governments and agencies in other jurisdictions may 
        benefit from such information.
          (10) Federal, State, and local governments and 
        intelligence, law enforcement, and other emergency 
        preparation and response agencies must act in 
        partnership to maximize the benefits of information 
        gathering and analysis to prevent and respond to 
        terrorist attacks.
          (11) Information systems, including the National Law 
        Enforcement Telecommunications System and the Terrorist 
        Threat Warning System, have been established for rapid 
        sharing of classified and sensitive but unclassified 
        information among Federal, State, and local entities.
          (12) Increased efforts to share homeland security 
        information should avoid duplicating existing 
        information systems.
  (b) Sense of Congress.--It is the sense of Congress that 
Federal, State, and local entities should share homeland 
security information to the maximum extent practicable, with 
special emphasis on hard-to-reach urban and rural communities.

SEC. 782. FACILITATING HOMELAND SECURITY INFORMATION SHARING 
                    PROCEDURES.

  (a) Procedures for Determining Extent of Sharing of Homeland 
Security Information.--
          (1) The President shall prescribe and implement 
        procedures under which relevant Federal agencies--
                  (A) share relevant and appropriate homeland 
                security information with other Federal 
                agencies, including the Department, and 
                appropriate State and local personnel;
                  (B) identify and safeguard homeland security 
                information that is sensitive but unclassified; 
                and
                  (C) to the extent such information is in 
                classified form, determine whether, how, and to 
                what extent to remove classified information, 
                as appropriate, and with which such personnel 
                it may be shared after such information is 
                removed.
          (2) The President shall ensure that such procedures 
        apply to all agencies of the Federal Government.
          (3) Such procedures shall not change the substantive 
        requirements for the classification and safeguarding of 
        classified information.
          (4) Such procedures shall not change the requirements 
        and authorities to protect sources and methods.
  (b) Procedures for Sharing of Homeland Security 
Information.--
          (1) Under procedures prescribed by the President, all 
        appropriate agencies, including the intelligence 
        community, shall, through information sharing systems, 
        share homeland security information with Federal 
        agencies and appropriate State and local personnel to 
        the extent such information may be shared, as 
        determined in accordance with subsection (a), together 
        with assessments of the credibility of such 
        information.
          (2) Each information sharing system through which 
        information is shared under paragraph (1) shall--
                  (A) have the capability to transmit 
                unclassified or classified information, though 
                the procedures and recipients for each 
                capability may differ;
                  (B) have the capability to restrict delivery 
                of information to specified subgroups by 
                geographic location, type of organization, 
                position of a recipient within an organization, 
                or a recipient's need to know such information;
                  (C) be configured to allow the efficient and 
                effective sharing of information; and
                  (D) be accessible to appropriate State and 
                local personnel.
          (3) The procedures prescribed under paragraph (1) 
        shall establish conditions on the use of information 
        shared under paragraph (1)--
                  (A) to limit the redissemination of such 
                information to ensure that such information is 
                not used for an unauthorized purpose;
                  (B) to ensure the security and 
                confidentiality of such information;
                  (C) to protect the constitutional and 
                statutory rights of any individuals who are 
                subjects of such information; and
                  (D) to provide data integrity through the 
                timely removal and destruction of obsolete or 
                erroneous names and information.
          (4) The procedures prescribed under paragraph (1) 
        shall ensure, to the greatest extent practicable, that 
        the information sharing system through which 
        information is shared under such paragraph include 
        existing information sharing systems, including, but 
        not limited to, the National Law Enforcement 
        Telecommunications System, the Regional Information 
        Sharing System, and the Terrorist Threat Warning System 
        of the Federal Bureau of Investigation.
          (5) Each appropriate Federal agency, as determined by 
        the President, shall have access to each information 
        sharing system through which information is shared 
        under paragraph (1), and shall therefore have access to 
        all information, as appropriate, shared under such 
        paragraph.
          (6) The procedures prescribed under paragraph (1) 
        shall ensure that appropriate State and local personnel 
        are authorized to use such information sharing 
        systems--
                  (A) to access information shared with such 
                personnel; and
                  (B) to share, with others who have access to 
                such information sharing systems, the homeland 
                security information of their own 
                jurisdictions, which shall be marked 
                appropriately as pertaining to potential 
                terrorist activity.
          (7) Under procedures prescribed jointly by the 
        Director of Central Intelligence and the Attorney 
        General, each appropriate Federal agency, as determined 
        by the President, shall review and assess the 
        information shared under paragraph (6) and integrate 
        such information with existing intelligence.
  (c) Sharing of Classified Information and Sensitive but 
Unclassified Information With State and Local Personnel.--
          (1) The President shall prescribe procedures under 
        which Federal agencies may, to the extent the President 
        considers necessary, share with appropriate State and 
        local personnel homeland security information that 
        remains classified or otherwise protected after the 
        determinations prescribed under the procedures set 
        forth in subsection (a).
          (2) It is the sense of Congress that such procedures 
        may include one or more of the following means:
                  (A) Carrying out security clearance 
                investigations with respect to appropriate 
                State and local personnel.
                  (B) With respect to information that is 
                sensitive but unclassified, entering into 
                nondisclosure agreements with appropriate State 
                and local personnel.
                  (C) Increased use of information-sharing 
                partnerships that include appropriate State and 
                local personnel, such as the Joint Terrorism 
                Task Forces of the Federal Bureau of 
                Investigation, the Anti-Terrorism Task Forces 
                of the Department of Justice, and regional 
                Terrorism Early Warning Groups.
  (d) Responsible Officials.--For each affected Federal agency, 
the head of such agency shall designate an official to 
administer this Act with respect to such agency.
  (e) Federal Control of Information.--Under procedures 
prescribed under this section, information obtained by a State 
or local government from a Federal agency under this section 
shall remain under the control of the Federal agency, and a 
State or local law authorizing or requiring such a government 
to disclose information shall not apply to such information.
  (f) Definitions.--As used in this section:
          (1) The term ``homeland security information'' means 
        any information possessed by a Federal, State, or local 
        agency that--
                  (A) relates to the threat of terrorist 
                activity;
                  (B) relates to the ability to prevent, 
                interdict, or disrupt terrorist activity;
                  (C) would improve the identification or 
                investigation of a suspected terrorist or 
                terrorist organization; or
                  (D) would improve the response to a terrorist 
                act.
          (2) The term ``intelligence community'' has the 
        meaning given such term in section 3(4) of the National 
        Security Act of 1947 (50 U.S.C. 401a(4)).
          (3) The term ``State and local personnel'' means any 
        of the following persons involved in prevention, 
        preparation, or response for terrorist attack:
                  (A) State Governors, mayors, and other 
                locally elected officials.
                  (B) State and local law enforcement personnel 
                and firefighters.
                  (C) Public health and medical professionals.
                  (D) Regional, State, and local emergency 
                management agency personnel, including State 
                adjutant generals.
                  (E) Other appropriate emergency response 
                agency personnel.
                  (F) Employees of private-sector entities that 
                affect critical infrastructure, cyber, 
                economic, or public health security, as 
                designated by the Federal government in 
                procedures developed pursuant to this section.
          (4) The term ``State'' includes the District of 
        Columbia and any commonwealth, territory, or possession 
        of the United States.
  (g) Construction.--Nothing in this Act shall be construed as 
authorizing any department, bureau, agency, officer, or 
employee of the Federal Government to request,receive, or 
transmit to any other Government entity or personnel, or transmit to 
any State or local entity or personnel otherwise authorized by this Act 
to receive homeland security information, any information collected by 
the Federal Government solely for statistical purposes in violation of 
any other provision of law relating to the confidentiality of such 
information.

SEC. 783. REPORT.

  (a) Report Required.--Not later than 12 months after the date 
of the enactment of this Act, the President shall submit to the 
congressional committees specified in subsection (b) a report 
on the implementation of section 782. The report shall include 
any recommendations for additional measures or appropriation 
requests, beyond the requirements of section 782, to increase 
the effectiveness of sharing of information between and among 
Federal, State, and local entities.
  (b) Specified Congressional Committees.--The congressional 
committees referred to in subsection (a) are the following 
committees:
          (1) The Permanent Select Committee on Intelligence 
        and the Committee on the Judiciary of the House of 
        Representatives.
          (2) The Select Committee on Intelligence and the 
        Committee on the Judiciary of the Senate.

SEC. 784. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as may be 
necessary to carry out section 782.

SEC. 785. AUTHORITY TO SHARE GRAND JURY INFORMATION.

  Rule 6(e) of the Federal Rules of Criminal Procedure is 
amended--
          (1) in paragraph (2), by inserting ``, or of 
        guidelines jointly issued by the Attorney General and 
        Director of Central Intelligence pursuant to Rule 6,'' 
        after ``Rule 6''; and
          (2) in paragraph (3)--
                  (A) in subparagraph (A)(ii), by inserting 
                ``or of a foreign government'' after 
                ``(including personnel of a state or 
                subdivision of a state'';
                  (B) in subparagraph (C)(i)--
                          (i) in subclause (I), by inserting 
                        before the semicolon the following: 
                        ``or, upon a request by an attorney for 
                        the government, when sought by a 
                        foreign court or prosecutor for use in 
                        an official criminal investigation'';
                          (ii) in subclause (IV)--
                                  (I) by inserting ``or 
                                foreign'' after ``may disclose 
                                a violation of State'';
                                  (II) by inserting ``or of a 
                                foreign government'' after ``to 
                                an appropriate official of a 
                                State or subdivision of a 
                                State''; and
                                  (III) by striking ``or'' at 
                                the end;
                          (iii) by striking the period at the 
                        end of subclause (V) and inserting ``; 
                        or''; and
                          (iv) by adding at the end the 
                        following:
                          ``(VI) when matters involve a threat 
                        of actual or potential attack or other 
                        grave hostile acts of a foreign power 
                        or an agent of a foreign power, 
                        domestic or international sabotage, 
                        domestic or international terrorism, or 
                        clandestine intelligence gathering 
                        activities by an intelligence service 
                        or network of a foreign power or by an 
                        agent of a foreign power, within the 
                        United States or elsewhere, to any 
                        appropriate federal, state, local, or 
                        foreign government official for the 
                        purpose of preventing or responding to 
                        such a threat.''; and
                  (C) in subparagraph (C)(iii)--
                          (i) by striking ``Federal'';
                          (ii) by inserting ``or clause 
                        (i)(VI)'' after ``clause (i)(V)''; and
                          (iii) by adding at the end the 
                        following: ``Any state, local, or 
                        foreign official who receives 
                        information pursuant to clause (i)(VI) 
                        shall use that information only 
                        consistent with such guidelines as the 
                        Attorney General and Director of 
                        Central Intelligence shall jointly 
                        issue.''.

SEC. 786. AUTHORITY TO SHARE ELECTRONIC, WIRE, AND ORAL INTERCEPTION 
                    INFORMATION.

  Section 2517 of title 18, United States Code, is amended by 
adding at the end the following:
  ``(7) Any investigative or law enforcement officer, or other 
Federal official in carrying out official duties as such 
Federal official, who by any means authorized by this chapter, 
has obtained knowledge of the contents of any wire, oral, or 
electronic communication, or evidence derived therefrom, may 
disclose such contents or derivative evidence to a foreign 
investigative or law enforcement officer to the extent that 
such disclosure is appropriate to the proper performance of the 
official duties of the officer making or receiving the 
disclosure, and foreign investigative or law enforcement 
officers may use or disclose such contents or derivative 
evidence to the extent such use or disclosure is appropriate to 
the proper performance of their official duties.
  ``(8) Any investigative or law enforcement officer, or other 
Federal official in carrying out official duties as such 
Federal official, who by any means authorized by this chapter, 
has obtained knowledge of the contents of any wire, oral, or 
electronic communication, or evidence derived therefrom, may 
disclose such contents or derivative evidence to any 
appropriate Federal, State, local, or foreign government 
official to the extent that such contents or derivative 
evidence reveals a threat of actual or potential attack or 
other grave hostile acts of a foreign power or an agent of a 
foreign power, domestic or international sabotage, domestic or 
international terrorism, or clandestine intelligence gathering 
activities by an intelligence service or network of a foreign 
power or by an agent of a foreign power, within the United 
States or elsewhere, for the purpose of preventing or 
responding to such a threat. Any official who receives 
information pursuant to this provision may use that information 
only as necessary in the conduct of that person's official 
duties subject to any limitations on the unauthorized 
disclosure of such information, and any State, local, or 
foreign official who receives information pursuant to this 
provision may use that information only consistent with such 
guidelines as the At-
                              ----------                              


27. An Amendment To Be Offered by Representative Weldon of Florida, or 
                 His Designee, Debatable for 20 Minutes

  At the end of section 402 (relating to functions transferred) 
insert the following:
                  (9) The Visa Office of the Bureau of Consular 
                Affairs of the Department of State, including 
                the functions of the Secretary of State, 
                relating thereto.
  In section 403 (relating to visa issuance) strike subsections 
(a) through (f) and insert the following (and redesignate 
subsection (g) as subsection (i)):
  (a) Authority.--Notwithstanding the provisions of section 104 
of the Immigration and Nationality Act (8 U.S.C. 1104) or any 
other law, the Secretary shall have exclusive authority to 
issue regulations with respect to, administer, and enforce the 
provisions of that Act and all other immigration and 
nationality laws relating to the granting or refusal of visas.
  (b) Transition.--
          (1) In general; details.--During the 2-year period 
        beginning on the effective date of this Act, there 
        shall be a transition period. During this period 
        consular officers (as defined in section 101(a)(9) of 
        the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(9))) of the Department of State and other 
        foreign service officers in the Visa Office, to the 
        extent they are involved in the granting or refusal of 
        visas or any other documents required for entry into 
        the United States, shall be detailed to the Department 
        of Homeland Security. A detail under this subsection 
        may be terminated at any time by the Secretary.
          (2) Maintenance of rotation program.--During the 
        transition period described in paragraph (1), the 
        Secretary of State shall maintain and administer the 
        current rotation program (at least at the employment 
        level in existence on the date of enactment of this 
        Act) under which foreign service officers are assigned 
        functions involved in the adjudication, review, or 
        processing of visa applications.
          (3) Termination of transition period.--The transition 
        period may be terminated within the 2-year period 
        described in paragraph (1) by the Secretary after 
        consultation with the Secretary of State.
          (4) Existing employees of visa office.--Employees of 
        the Visa Office who are not foreign service officers 
        shall become employees of the Department of Homeland 
        Security immediately upon the effective date of the 
        transfer of the Visa Office to the Department under 
        this title.
  (c) Training.--
          (1) Training program.--The Secretary shall provide 
        for the training of Department personnel involved in 
        the adjudication, review, or processing of visa 
        applications, specifically addressing the language 
        skills, interview techniques, fraud detection 
        techniques, and other skills to be used by such 
        personnel.
          (2) Study regarding use of foreign nationals.--During 
        the transition period, the Secretary shall study the 
        role of foreign nationals in the review and processing 
        of visa applications, specifically addressing the 
        following:
                  (A) The proper role, if any, of foreign 
                nationals in such processing.
                  (B) Any security concerns involving the 
                employment of foreign nationals.
                  (C) Whether there are cost-effective 
                alternatives to the employment of foreign 
                nationals.
          (3) Report.--Not later than 2 years after the date of 
        the enactment of this Act, the Secretary shall submit a 
        report on the findings of the study under paragraph (2) 
        to the Committee on Government Reform, Committee on the 
        Judiciary, and Committee on International Relations of 
        the House of Representatives and the Committee on 
        Governmental Affairs, Committee on the Judiciary, and 
        Committee on Foreign Relations of the Senate.
  (d) Legal Effect.--
          (1) In general.--The transfer of authority to the 
        Secretary in section 403(a) shall not be construed to 
        modify--
                  (A) any ground for such refusal authorized by 
                law (including grounds under sections 212 and 
                221(g) of such Act (8 U.S.C. 1182 and 
                1201(g)));
                  (B) the presumption of immigrant status 
                established under section 214(b) of such Act (8 
                U.S.C. 1184(b)) or the effect of failure to 
                establish eligibility for nonimmigrant status 
                described in such section; or
                  (C) the burden of proof placed upon persons 
                making application for a visa or any other 
                document required for entry under section 291 
                of such Act (8 U.S.C. 1361) or the effect of 
                failure to establish eligibility for such visa 
                or other document described in such section.
          (2) Nonreviewability.--No court shall have 
        jurisdiction to review the granting or refusal of a 
        visa by the Secretary or a designee of the Secretary.
  (e) Refusal of Visas at Request of Secretary of State.--Upon 
request by the Secretary of State, the Secretary of Homeland 
Security shall refuse to issue a visa to an alien if the 
Secretary of State determines that such refusal is necessary or 
advisable in the interests of the United States.
  (f) Review of Passports Issued to Americans Overseas.--The 
Secretary shall have the authority to review requests for 
passports by citizens of the United States living or traveling 
overseas.
  (g) Conforming Amendments.--Section 104 of the Immigration 
and Nationality Act (8 U.S.C. 1104) is amended as follows:
          (1) In subsection (a), by striking ``conferred upon 
        consular officers'' and inserting ``conferred upon the 
        Secretary of Homeland Security''.
          (2) In subsection (c)--
                  (A) in the first sentence, by striking ``, a 
                Visa Office,''; and
                  (B) in the second sentence, by striking 
                ``Directors of the Passport Office and the Visa 
                Office'' and inserting ``Director of the 
                Passport Office, and the head of the office of 
                the Department of Homeland Security that 
                administers the provisions of this Act and 
                other immigration and nationality laws relating 
                to the granting or refusal of visas,''.
          (3) By striking subsection (e).

                                
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