[Senate Report 111-91]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 188

111th Congress 
 1st Session                     SENATE                          Report
                                                                 111-91
_______________________________________________________________________

           EFFECTIVE HOMELAND SECURITY MANAGEMENT ACT OF 2009

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                 S. 872

 TO ESTABLISH A DEPUTY SECRETARY OF HOMELAND SECURITY FOR MANAGEMENT, 
                         AND FOR OTHER PURPOSES




                October 26, 2009.--Ordered to be printed


                       U.S. GOVERNMENT PRINTING OFFICE
                              WASHINGTON : 2009





        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           JOHN McCAIN, Arizona
MARK L. PRYOR, Arkansas              GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana          JOHN ENSIGN, Nevada
CLAIRE McCASKILL, Missouri           LINDSEY GRAHAM, South Carolina
JON TESTER, Montana                  ROBERT F. BENNETT, Utah
ROLAND W. BURRIS, Illinois
PAUL G. KIRK, JR., Massachusetts

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
            Christian J. Beckner, Professional Staff Member
 Evan W. Cash. Professional Staff Member, Subcommittee on Oversight of 
   Government Management, the Federal Workforce, and the District of 
                                Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
        Amanda Wood, Minority Director for Governmental Affairs
Tara L. Shaw, Minority Counsel, Subcommittee on Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk
                                                       Calendar No. 188
111th Congress
                                 SENATE
                                                                 Report
 1st Session                                                     111-91

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



 
           EFFECTIVE HOMELAND SECURITY MANAGEMENT ACT OF 2009

                                _______
                                

                October 26, 2009.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 872]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 872) to establish a 
Deputy Secretary of Homeland Security for Management, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................5
 IV. Section-by-Section Analysis......................................6
  V. Evaluation of Regulatory Impact..................................7
 VI. Congressional Budget Office Cost Estimate........................8
VII. Changes in Existing Law Made by the Bill, as Reported............8

                         I. Purpose and Summary

    The purpose of S. 872 is to establish a Deputy Secretary of 
Homeland Security for Management and provide a five-year term 
for that position. S. 872 would eliminate the current Under 
Secretary for Management position at the Department of Homeland 
Security, and create instead a Deputy Secretary of Homeland 
Security for Management. The Deputy Secretary for Management 
would have a five year term in order to provide management 
continuity at the Department during times of transition, 
although the President could remove the Deputy Secretary for 
Management for unsatisfactory performance if the President 
communicated the reasons for the Deputy Secretary for 
Management's removal to Congress before that removal occurred. 
The bill would preserve the current authorities of the 
Secretary of Homeland Security and the Deputy Secretary of 
Homeland Security.

              II. Background and Need for the Legislation


                    A. MANAGEMENT CHALLENGES AT DHS

    In the Homeland Security Act of 2002, Congress established 
the position of Under Secretary for Management\1\ to oversee 
the management and administration of the Department of Homeland 
Security (DHS).\2\ Shortly after DHS was established in law on 
November 25, 2002,\3\ the Government Accountability Office 
(GAO) designated implementing and transforming DHS as a high-
risk area.\4\
---------------------------------------------------------------------------
    \1\Pub. L. No. 107-296 (6 U.S.C. 113(a)(6)).
    \2\Id. (6 U.S.C. 341).
    \3\Id.
    \4\U.S. Government Accountability Office, High Risk Series, An 
Update, p. 18, GAO-03-119.
---------------------------------------------------------------------------
    GAO made this designation because of the enormity of the 
task of consolidating 22 distinct agencies into a new 
Department and transforming DHS into an integrated Department 
that could effectively carry out its core mission of protecting 
the homeland.\5\ GAO noted that merging 22 agencies and 
approximately 170,000 employees into one federal department 
carried significant risks and that ``[n]ecessary management 
capacity and oversight mechanisms must be established'' at 
DHS.\6\
---------------------------------------------------------------------------
    \5\Id. at p. 37.
    \6\Id.
---------------------------------------------------------------------------
    The Department came into existence on March 1, 2003. It 
faced significant management challenges in its first several 
years. In 2005, GAO noted that DHS had made progress in 
transforming itself and credited DHS leadership with providing 
``a foundation for maintaining critical operations while 
undergoing transformation.''\7\ However, GAO continued to 
designate implementing and transforming DHS as a high-risk area 
because it found management and other challenges remained to 
transforming DHS.\8\
---------------------------------------------------------------------------
    \7\U.S. Government Accountability Office, High Risk Series, An 
Update, p. 52, GAO-05-207.
    \8\Id.
---------------------------------------------------------------------------
    DHS's Inspector General (IG) reached similar conclusions. 
In 2005, the IG issued a report warning of major management 
challenges facing DHS.\9\ The report noted that ``since its 
inception in March 2003, [DHS] worked to accomplish the largest 
reorganization of the federal government in more than half a 
century.'' It went on to note that ``this task, creating the 
third largest Cabinet agency with the critical, core mission of 
protecting the country against another terrorist attack, has 
presented many challenges to the Department's managers and 
employees.''\10\ The report outlined a number of ``major 
management challenges'' facing DHS, including the needs to 
consolidate the Department's components, to better manage 
grants and contracts, to enhance the oversight of the 
Department's finances and to improve its human capital 
management.\11\
---------------------------------------------------------------------------
    \9\Department of Homeland Security Office of Inspector General, 
Major Management Challenges Facing the Department of Homeland Security, 
OIG-06-14.
    \10\Id. at p. 3.
    \11\Id. at p. 3-8.
---------------------------------------------------------------------------
    The Department's Highlights Report for Fiscal Year 2007, 
issued by the DHS Chief Financial Officer, noted progress that 
DHS had made in areas such as human capital management, 
financial management, and information technology, but concluded 
that DHS did not achieve its internal performance goals for the 
Department's management related to providing ``comprehensive 
leadership, oversight, and support to all Components'' and 
improving ``the efficiency and effectiveness of [DHS] and its 
business and management services.''\12\ The report also 
acknowledged that DHS did not improve its scores on the 
President's Management Agenda,\13\ a strategy announced in 2001 
to improve the management of the federal government.\14\
---------------------------------------------------------------------------
    \12\Department of Homeland Security, Highlights Report, Fiscal Year 
2007 at p. 38, available at http://www.dhs.gov/xlibrary/assets/
cfo_highlightsfy2007.pdf.
    \13\Id.
    \14\http://www.whitehouse.gov/omb/rewrite/budintegration/
pma_index.html; see also Congressional Research Service, The 
President's Management Agenda: A Brief Introduction, p. 1, RS21416, 
which explains that the President's Management Agenda was announced in 
August 2001 with the stated purpose of ``improving the management and 
performance of the federal government'' through five government-wide 
initiatives.
---------------------------------------------------------------------------
    In its 2007 update to its high-risk list, GAO recognized 
DHS' progress in transforming disparate agencies into a single 
department, citing progress made to improve ``cargo, 
transportation, and border security; Coast Guard management; 
disaster preparedness; and immigration services.''\15\ But GAO 
also found that DHS continued to face programmatic and 
partnering challenges, and continued its designation of 
implementing and transforming DHS as a high-risk area.\16\
---------------------------------------------------------------------------
    \15\U.S. Government Accountability Office, High Risk Series, An 
Update, p. 45, GAO-07-310.
    \16\Id.
---------------------------------------------------------------------------
    In January 2007 the Homeland Security Advisory Council's 
Culture Task Force released a report that articulated other 
concerns about DHS management.\17\ The report noted that while 
DHS leadership had made ``solid strides in achieving its 
Herculean task'' of establishing the Department and carrying 
out ``one of the most daunting assignments in the history of 
the U.S. government,'' the Department still faced numerous 
persisting organizational and cultural challenges.''\18\ The 
report noted that ``[s]uccess of nearly every large, diverse 
and geographically dispersed organization requires alignment 
around a . . . common management process, and common leadership 
expectations'', and challenged the leadership of DHS to 
establish a clear management model.\19\
---------------------------------------------------------------------------
    \17\Homeland Security Advisory Council, Report of the Homeland 
Security Culture Task Force (Jan. 2007), available at http://
www.dhs.gov/xlibrary/assets/hsac_ctfreport_200701.pdf.
    \18\Id. at p. 8.
    \19\Id. at p. 3.
---------------------------------------------------------------------------
    Recognizing DHS's management challenges, Congress in 2007 
amended the Homeland Security Act to clarify that the role and 
responsibilities of the DHS Under Secretary for Management 
include serving as the Chief Management Officer at DHS and 
principal advisor to the Secretary of Homeland Security on the 
management of DHS.\20\ Congress also made the DHS Under 
Secretary for Management responsible for strategic management 
and annual performance planning, identification and tracking of 
performance measures, and the management integration and 
transformation process in support of DHS operations and 
programs.\21\ The 2007 amendments also established managerial 
and leadership qualifications for the DHS Under Secretary for 
Management\22\ and increased the pay scale for that Under 
Secretary.\23\
---------------------------------------------------------------------------
    \20\Pub. L. No. 110-53 (6 U.S.C. 341(a)).
    \21\Id.
    \22\Id. (6 U.S.C. 341(c)).
    \23\Id. (5 U.S.C. 5313).
---------------------------------------------------------------------------
    Since enactment of these amendments to the Homeland 
Security Act, the Department has made progress to improve its 
management but continues to face significant management 
challenges in a number of areas.
    The DHS Inspector General again reported on management 
challenges facing DHS in 2008.\24\ That report noted DHS's 
progress towards accomplishing an effective reorganization and 
detailed fewer management challenges than prior reports, but it 
also found that DHS ``has much to do to establish a cohesive, 
efficient, and effective organization.''\25\ Further, the 
report identified acquisition management, grants management, 
and financial management as continuing ``major management 
challenges'' at DHS.\26\
---------------------------------------------------------------------------
    \24\Department of Homeland Security Office of Inspector General, 
Major Management Challenges Facing the Department of Homeland Security, 
OIG-08-11.
    \25\Id. at p. 1.
    \26\Id.
---------------------------------------------------------------------------
    In January 2009, GAO continued its designation of 
``Implementing and Transforming the Department of Homeland 
Security'' on its high-risk list. GAO acknowledged that DHS had 
made progress in the previous two years, including the 
development of an ``Integrated Strategy for High Risk 
Management,'' the production of corrective action plans to 
address management challenges, and strengthened management 
functions.\27\ But also GAO noted a variety of ``management, 
programmatic, and partnering challenges'' that remain at DHS, 
and found that the Integrated Strategy for High Risk Management 
``lacks details for the transformation of DHS and integration 
of its management functions.''\28\ Therefore, GAO recommended 
that DHS continue to make efforts to improve its management 
functions.\29\
---------------------------------------------------------------------------
    \27\U.S. Government Accountability Office, High Risk Series, An 
Update, GAO-09-271, p. 49.
    \28\Id.
    \29\Id.
---------------------------------------------------------------------------

               B. ADDRESSING DHS'S MANAGEMENT CHALLENGES

    S. 872 would address the continuing management challenges 
at DHS by elevating the Under Secretary for Management position 
to a Deputy Secretary of Homeland Security for Management 
position and by giving the occupant of the position a five-year 
term in order to provide management continuity at DHS during 
times of transition.
    At a hearing last Congress before the Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia, then Comptroller-General David Walker 
testified that a Deputy Secretary of Homeland Security for 
Management would be preferable to the current structure at 
DHS,\30\ and he advocated for ``a full-time and senior-level'' 
chief management officer at DHS ``with a term appointment of at 
least 5 to 7 years''\31\ to help maintain leadership continuity 
at DHS.\32\
---------------------------------------------------------------------------
    \30\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on Managing the Department of Homeland 
Security: A Status Report on Reform Efforts by the Under Secretary for 
Management (S. Hrg. 110-238), p. 12, May 10, 2007.
    \31\U.S. Government Accountability Office, Organizational 
Transformation, Implementing Chief Operating Officer/Chief Management 
Officer Positions in Federal Agencies, GAO-08-322T, p. 7, Dec. 13, 
2007.
    \32\Id. at p. 10.
---------------------------------------------------------------------------
    In his written testimony, Mr. Walker based his support for 
this change on a 2002 GAO roundtable of government leaders and 
management experts\33\ at which there was general agreement 
that management weaknesses are sometimes so deeply entrenched 
and long standing that they require years of sustained 
attention and continuity to resolve.\34\ At the roundtable, a 
former GAO worker noted that successful management changes in 
large organizations suggest that it can often take five to 
seven years to fully implement new management initiatives and 
transform cultures.\35\
---------------------------------------------------------------------------
    \33\Id. at p. 3.
    \34\U.S. Government Accountability Office, Highlights of a GAO 
Roundtable, The Chief Operating Officer Concept: A Potential Strategy 
to Address Federal Governance Challenges, GAO-03-192SP, p. 3.
    \35\Id. at pp. 3-4.
---------------------------------------------------------------------------
    In addition to citing GAO's earlier roundtable, Mr. Walker 
based his support for a term appointment for DHS' chief 
management officer on DHS' continued lack of ``a dedicated team 
with the authority and responsibility to help develop and 
implement'' a comprehensive management integration strategy, 
and he advised that providing a term appointment for DHS' chief 
management officer ``would provide the elevated senior 
leadership and concerted and long-term attention required to 
marshal'' that effort.\36\ Mr. Walker identified a number of 
benefits associated with establishing a five to seven year term 
appointment for DHS' chief management officer, including 
instilling long-term focus and avoiding the high turnover rates 
associated with political appointees that ``can make it 
difficult to follow through with organizational transformation 
because of the length of time often needed to provide 
meaningful and sustainable results.''\37\
---------------------------------------------------------------------------
    \36\Supra note 31 at p. 8.
    \37\Id. at p. 11.
---------------------------------------------------------------------------

                        III. Legislative History

    On April 23, 2009, S. 872 was introduced by Senator 
Voinovich and was referred to the Committee on Homeland 
Security and Governmental Affairs. Senators Akaka, Carper, and 
Levin are cosponsors of the legislation.
    On July 29, 2009, the Committee on Homeland Security and 
Governmental Affairs ordered S. 872, as amended by the 
Lieberman-Voinovich amendment, reported favorably by voice 
vote. The Lieberman-Voinovich amendment clarifies that if an 
individual has been appointed as the DHS Under Secretary for 
Management by and with the advice and consent of the Senate on 
or before the date of enactment of S. 872, that individual 
shall assume the title of Deputy Secretary of Homeland Security 
for Management and his or her term shall begin on the date of 
enactment of S. 872. The members present were Chairman 
Lieberman, Senators Akaka, Carper, Pryor, Landrieu, McCaskill, 
and Burris; Ranking Minority Member Collins; Senators Coburn 
and Voinovich.

                    IV. Section-by-Section Analysis


Section 1. Short title

    This section establishes the title of the act as the 
``Effective Homeland Security Management Act of 2009.''

Section 2. Deputy Secretary of Homeland Security for Management

    This section amends Section 103 of the Homeland Security 
Act of 2002 (6 U.S.C. 113) by changing the heading of section 
103(a) from ``Deputy Secretary; Under Secretaries'' to ``Deputy 
Secretaries; Under Secretaries'' striking the reference to ``An 
Under Secretary for Management'' in section 103(a)(6); 
redesignating sections 103(a)(2)-(5) as sections 103(a)(3)-(6); 
striking section 103(a)(1) and replacing it with ``A Deputy 
Secretary of Homeland Security;'' and inserting a new section 
103(a)(2) to reference ``A Deputy Secretary of Homeland 
Security for Management.''
    Additionally, this section amends the Homeland Security Act 
of 2002 by inserting a new section 103(g), which clarifies the 
order of succession at DHS in the event of vacancies. 
Specifically, the new section 103(g) makes clear that in the 
event of a vacancy, absence, or disability in the office of the 
Secretary of Homeland Security, the Deputy Secretary of 
Homeland Security may temporarily perform the functions and 
duties of the Secretary of Homeland Security unless the 
President directs otherwise, and that when neither the 
Secretary of Homeland Security nor the Deputy Secretary of 
Homeland Security is available to exercise the duties of the 
office of the Secretary of Homeland Security, the Deputy 
Secretary of Homeland Security for Management shall perform 
those duties. In addition, the new section 103(g) provides that 
in the event of a vacancy, absence, or disability in the office 
of the Deputy Secretary of Homeland Security, the Deputy 
Secretary of Homeland Security for Management may exercise the 
duties of the Deputy Secretary of Homeland Security. Section 
103(g) leaves further order of succession to the Secretary of 
Homeland Security's discretion.
    This section also amends section 701 of the Homeland 
Security Act of 2002 (6 U.S.C. 341) by changing the section 
heading from ``Under Secretary for Management'' to ``Deputy 
Secretary of Homeland Security for Management,'' and by 
replacing ``Under Secretary for Management'' with ``Deputy 
Secretary of Homeland Security for Management'' each place it 
appears in section 701.
    Section 701(c) of the Homeland Security Act of 2002 is also 
amended in this section by changing the subsection heading of 
``Appointment and Evaluation'' to ``Appointment, Evaluation, 
and Reappointment.'' In addition to making technical changes, 
this section adds a new section 701(c)(4) that provides that 
the Deputy Secretary of Homeland Security for Management shall 
generally serve a five-year term, but that the President may 
remove the Deputy Secretary of Homeland Security for Management 
if the President determines that the Deputy Secretary of 
Homeland Security for Management's performance is 
unsatisfactory and communicates the reasons for the Deputy 
Secretary of Homeland Security for Management's removal to 
Congress before that removal occurs. A new section 701(c)(5) is 
also added to allow the President to reappoint the Deputy 
Secretary of Homeland Security for Management for a second 
five-year term, by and with the advice and consent of the 
Senate, if the Deputy Secretary of Homeland Security for 
Management has received satisfactory annual performance 
evaluations from the Secretary of Homeland Security for the 
three most recent years. The Committee believes that a five-
year term is necessary to ensure continuity of leadership at 
DHS' management directorate and to provide the long-term, 
continued focus necessary to fully implement DHS' management 
functions. The Committee does not anticipate that an 
Administration would use the five-year term in an attempt to 
impact or influence the policies of future Administrations and 
notes that such attempts, or significant policy disagreements 
between the Deputy Secretary for Management and the Secretary 
or the President that cause the President to determine that the 
Deputy Secretary for Management's performance is 
unsatisfactory, could be grounds for removal under this 
subsection if the President communicates the reasons for the 
Deputy Secretary for Management's removal to Congress before 
that removal occurs.
    This section also clarifies that any reference to the DHS 
Under Secretary for Management in any Federal law, Executive 
order, rule, regulation, delegation of authority or other 
document shall be deemed a reference to the Deputy Secretary of 
Homeland Security for Management.
    Further, this section clarifies that if an individual has 
been appointed as DHS Under Secretary for Management, by and 
with the advice and consent of the Senate, and is serving in 
that position when S. 872 is enacted, that individual shall 
become the Deputy Secretary of Homeland Security for 
Management, and that individual's five-year term shall begin on 
the date of enactment of S. 872.
    Lastly, this section makes technical and conforming 
amendments by changing the reference in section 702(a) of the 
Homeland Security Act of 2002 (6 U.S.C. 342(a)) from ``Under 
Secretary for Management'' to ``Deputy Secretary of Homeland 
Security for Management;'' changing the reference in the table 
of contents in section 1(b) of the Homeland Security Act of 
2002 from ``Under Secretary for Management'' to ``Deputy 
Secretary of Homeland Security for Management;'' and changing 
the reference in 5 U.S.C. 5313 from ``Under Secretary of 
Homeland Security for Management'' to ``Deputy Secretary of 
Homeland Security for Management.''

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office (CBO) states that there are no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and no costs on State, local, or 
tribal governments. The legislation contains no other 
regulatory impact.

             VI. Congressional Budget Office Cost Estimate

                                                    August 7, 2009.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 872, the Effective 
Homeland Security Management Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 872--Effective Homeland Security Management Act of 2009

    S. 872 would make several changes to laws relating to the 
management of the Department of Homeland Security (DHS). In 
particular, the bill would elevate the position of Under 
Secretary of Management to Deputy Secretary of Homeland 
Security for Management.
    Because that proposed change would not affect the salary of 
that individual, CBO estimates that implementing S. 872 would 
not directly affect federal costs. However, the bill could lead 
to changes--such as providing personal security for the new 
deputy secretary--that could increase costs. Although CBO has 
no basis for anticipating such changes, we estimate that 
additional spending for such activities could range from 
negligible amounts to a few million dollars annually to provide 
full-time security coverage, subject to appropriation of the 
necessary funds. Enacting the bill would not affect revenues or 
direct spending.
    S. 872 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Mark Grabowicz. 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows: 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           UNITED STATES CODE

             TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III. EMPLOYEES

                     Subpart D. Pay and Allowances

                   CHAPTER 53. PAY RATES AND SYSTEMS


Subchapter II. Executive Schedule Pay Rates

           *       *       *       *       *       *       *



SEC. 5313. POSITIONS AT LEVEL II.

           *       *       *       *       *       *       *


    [Under Secretary of Homeland Security for Management.] 
Deputy Secretary of Homeland Security for Management.

           *       *       *       *       *       *       *


TITLE 6. DOMESTIC SECURITY

           *       *       *       *       *       *       *


TABLE OF CONTENTS

           *       *       *       *       *       *       *


[Sec. 701. Under Secretary for Management.] Sec. 701. Deputy Secretary 
          of Homeland Security for Management.

           *       *       *       *       *       *       *


               CHAPTER 1. HOMELAND SECURITY ORGANIZATION


             Subchapter I. Department of Homeland Security


SEC. 113. OTHER OFFICERS.

    (a) [Deputy Secretary] Deputy Secretaries; Under 
Secretaries.--There are the following officers, appointed by 
the President, by and with the advice and consent of the 
Senate:
          [(1) A Deputy Secretary of Homeland Security, who 
        shall be the Secretary's first assistant for purposes 
        of subchapter III of chapter 33 of title 5.]
          (1) A Deputy Secretary of Homeland Security.
          (2) A Deputy Secretary of Homeland Security for 
        Management.
          [(2)] (3) An Under Secretary for Science and 
        Technology.
          [(3)] (4) An Under Secretary for Border and 
        Transportation Security.
          [(4)] (5) An Administrator of the Federal Emergency 
        Management Agency.
          [(5)] (6) A Director of the Bureau of Citizenship and 
        Immigration Services.
          [(6) An Under Secretary for Management.]
          (7) A Director of the Office of Counternarcotics 
        Enforcement.
          (8) An Under Secretary responsible for overseeing 
        critical infrastructure protection, cybersecurity, and 
        other related programs of the Department.
          (9) Not more than 12 Assistant Secretaries.
          (10) A General Counsel, who shall be the chief legal 
        officer of the Department.

           *       *       *       *       *       *       *

    (g) Vacancies.--
          (1) Vacancy in office of secretary.--
                  (A) Deputy secretary.--In case of a vacancy 
                in the office of the Secretary, or of the 
                absence or disability of the Secretary, the 
                Deputy Secretary of Homeland Security may 
                exercise all the duties of that office, and for 
                the purpose of section 3345 of title 5, United 
                States Code, the Deputy Secretary of Homeland 
                Security is the first assistant to the 
                Secretary.
                  (B) Deputy secretary for Management.--When by 
                reason of absence, disability, or vacancy in 
                office, neither the Secretary nor the Deputy 
                Secretary of Homeland Security is available to 
                exercise the duties of the office of the 
                Secretary, the Deputy Secretary of Homeland 
                Security for Management shall act as Secretary.
          (2) Vacancy in office of deputy secretary.--In the 
        case of a vacancy in the office of the Deputy Secretary 
        of Homeland Security, or of the absence or disability 
        of the Deputy Secretary of Homeland Security, the 
        Deputy Secretary of Homeland Security for Management 
        may exercise all the duties of that office.
          (3) Further order of succession.--The Secretary may 
        designate such other officers of the Department in 
        further order of succession to act as Secretary.

           *       *       *       *       *       *       *


                       Subchapter VII. Management


SEC. 341. [UNDER SECRETARY] DEPUTY SECRETARY OF HOMELAND SECURITY FOR 
                    MANAGEMENT.

    (a) In General.--The [Under Secretary for Management] 
Deputy Secretary of Homeland Security for Management shall 
serve as the Chief Management Officer and principal advisor to 
the Secretary on matters related to the management of the 
Department, including management integration and transformation 
in support of homeland security operations and programs. The 
Secretary, acting through the [Under Secretary for Management] 
Deputy Secretary of Homeland Security for Management, shall be 
responsible for the management and administration of the 
Department, including the following:
          (1) The budget, appropriations, expenditures of 
        funds, accounting, and finance.
          (2) Procurement.
          (3) Human resources and personnel.
          (4) Information technology and communications 
        systems.
          (5) Facilities, property, equipment, and other 
        material resources.
          (6) Security for personnel, information technology 
        and communications systems, facilities, property, 
        equipment, and other material resources.
          (7) Strategic management planning and annual 
        performance planning and identification and tracking of 
        performance measures relating to the responsibilities 
        of the Department.
          (8) Grants and other assistance management programs.
          (9) The management integration and transformation 
        process, as well as the transition process, to ensure 
        an efficient and orderly consolidation of functions and 
        personnel in the Department and transition, including--
                  (A) the development of a management 
                integration strategy for the Department, and 
                (B) before December 1 of any year in which a 
                Presidential election is held, the development 
                of a transition and succession plan, to be made 
                available to the incoming Secretary and [Under 
                Secretary for Management] Deputy Secretary of 
                Homeland Security for Management, to guide the 
                transition of management functions to a new 
                Administration.
          (10) The conduct of internal audits and management 
        analyses of the programs and activities of the 
        Department.
          (11) Any other management duties that the Secretary 
        may designate.
    (b) Immigration.--
          (1) In general.--In addition to the responsibilities 
        described in subsection (a) of this section, the [Under 
        Secretary for Management] Deputy Secretary of Homeland 
        Security for Management shall be responsible for the 
        following:
                  (A) Maintenance of all immigration 
                statistical information of the Bureau of Border 
                Security and the Bureau of Citizenship and 
                Immigration Services. Such statistical 
                information shall include information and 
                statistics of the type contained in the 
                publication entitled ``Statistical Yearbook of 
                the Immigration and Naturalization Service'' 
                prepared by the Immigration and Naturalization 
                Service (as in effect immediately before the 
                date on which the transfer of functions 
                specified under section 251 of this title takes 
                effect), including region-by-region statistics 
                on the aggregate number of applications and 
                petitions filed by an alien (or filed on behalf 
                of an alien) and denied by such bureau, and the 
                reasons for such denials, disaggregated by 
                category of denial and application or petition 
                type.
                  (B) Establishment of standards of reliability 
                and validity for immigration statistics 
                collected by such bureaus.
          (2) Transfer of functions.--In accordance with 
        subchapter XII of this chapter, there shall be 
        transferred to the [Under Secretary for Management] 
        Deputy Secretary of Homeland Security for Management 
        all functions performed immediately before such 
        transfer occurs by the Statistics Branch of the Office 
        of Policy and Planning of the Immigration and 
        Naturalization Service with respect to the following 
        programs:
                  (A) The Border Patrol program.
                  (B) The detention and removal program.
                  (C) The intelligence program.
                  (D) The investigations program.
                  (E) The inspections program.
                  (F) Adjudication of immigrant visa petitions.
                  (G) Adjudication of naturalization petitions.
                  (H) Adjudication of asylum and refugee 
                applications.
                  (I) Adjudications performed at service 
                centers.
                  (J) All other adjudications performed by the 
                Immigration and Naturalization Service.
    (c) Appointment [and Evaluation], Evaluation, and 
Reappointment._The [Under Secretary for Management] Deputy 
Secretary of Homeland Security for Management [shall]--
          (1) shall be appointed by the President, by and with 
        the advice and consent of the Senate, from among 
        persons who have--
                  (A) extensive executive level leadership and 
                management experience in the public or private 
                sector;
                  (B) strong leadership skills;
                  (C) a demonstrated ability to manage large 
                and complex organizations; and
                  (D) a proven record in achieving positive 
                operational results;
          (2) shall enter into an annual performance agreement 
        with the Secretary that shall set forth measurable 
        individual and organizational goals; [and]
          (3) shall be subject to an annual performance 
        evaluation by the Secretary, who shall determine as 
        part of each such evaluation whether the [Under 
        Secretary for Management] Deputy Secretary of Homeland 
        Security for Management has made satisfactory progress 
        toward achieving the goals set out in the performance 
        agreement required under paragraph (2)[.];
          (4) shall--
                  (A) serve for a term of 5 years; and
                  (B) be subject to removal by the President if 
                the President--
                          (i) finds that the performance of the 
                        Deputy Secretary of Homeland Security 
                        for Management is unsatisfactory; and
                          (ii) communicates the reasons for 
                        removing the Deputy Secretary of 
                        Homeland Security for Management to 
                        Congress before such removal; and
          (5) may be reappointed in accordance with paragraph 
        (1), if the Secretary has made a satisfactory 
        determination under paragraph (3) for the 3 most recent 
        performance years.

5SEC. 342. CHIEF FINANCIAL OFFICER.

    (a) In General.--The Chief Financial Officer shall perform 
functions as specified in chapter 9 of title 31 and, with 
respect to all such functions and other responsibilities that 
may be assigned to the Chief Financial Officer from time to 
time, shall also report to the [Under Secretary for Management] 
Deputy Secretary of Homeland Security for Management.

                                  
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